Refinance LTV (Red Book Value) is a crucial metric in UK property development finance, measuring the maximum loan amount as a percentage of the project’s market value, determined by a formal RICS Red Book valuation. This valuation standard, conducted by RICS-registered professionals, ensures consistent and reliable market value assessment, widely accepted by lenders. The refinance LTV is essential for developers and lenders at project completion or stabilisation to evaluate refinancing options, align funding with current market conditions, and confirm exit strategy viability, making it a key factor in sustainable financing decisions.
This sits beneath Refinance Viability, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Refinance DSCR (Stabilised), as both are closely related measures used to assess similar aspects of performance or risk.
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