What 72% LTGDV really means for experienced developers.

For experienced housebuilders and property developers in the UK, leveraging development finance isn’t just about getting a project off the ground—it’s about maximising capital efficiency, enhancing returns, and staying agile in an increasingly competitive and fast-moving market.

While traditional development finance structures have often capped Loan to Gross Development Value (LTGDV) ratios at more conservative levels (typically 60-65%), the ability of Assetz Capital to offer up to 72% LTGDV will shift the landscape.

For developers with a solid track record, access to higher LTGDV leverage is more than a simple boost in funding. It represents a strategic tool that allows for greater scalability, better risk distribution, and superior return on equity (ROE) across a portfolio.

Here’s why seasoned housebuilders and developers should be paying close attention to our 72% LTGDV facility—and how they can integrate them into their financing strategies.

What 72% LTGDV really means for experienced developers

At this level, 72% LTGDV is generally reserved for developers with a strong delivery history, a proven exit strategy, and schemes that are well-located with solid underlying fundamentals. At Assetz Capital, we are able to stretch leverage because we trust the developer’s expertise, risk management, and project fundamentals.

Put simply, it allows you to secure up to 72% of the projected gross development value of a scheme—meaning, on a project expected to be worth £10 million on completion, you can raise £7.2 million in senior debt. This unlocks the ability to reallocate capital, increase pipeline velocity, and maximise profit margins across multiple developments.

The strategic advantages for experienced developers

Accelerate growth without diluting equity

Most experienced developers have a finite pool of equity capital they’re managing. Whether that’s retained earnings from previous schemes, joint venture funding, or private capital, the challenge is always how to deploy it most effectively.

With a 72% LTGDV facility, your own equity requirement reduces, typically to 28% of the GDV (and even less when mezzanine or equity finance is layered in). This means:

You can undertake multiple developments simultaneously, without waiting for the capital recycling process to complete. At Assetz Capital, we understand the need to maintain momentum, which is why (unlike most of our competitors) we will consider funding multiple projects at once.

You avoid the need to dilute equity stakes by bringing in third-party investors.

You maintain greater control over the project and its returns, without additional decision-makers at the table.

For developers with reliable deal flow and a strong pipeline, this higher leverage translates to greater scalability without compromising control.

Enhance Return on Equity (ROE) across the portfolio

Experienced developers typically focus on ROE, not just gross margins. A higher LTGDV facility means less equity tied up, which directly improves equity multiples and IRRs.

For example:

• Assume you’re targeting a 20% profit on GDV on a £10 million scheme.
• With a 65% LTGDV, you’d need to inject £3.5 million in equity.
• With a 72% LTGDV, your equity requirement falls to £2.8 million.

On exit, the same £2 million profit translates to a 57% ROE on £3.5 million of equity—or a 71% ROE on £2.8 million. Multiply that across several projects in a rolling development program, and the difference in portfolio-level returns is substantial.

Preserve Liquidity for Opportunistic Land Acquisitions

Land is still the lifeblood of any developer’s business model. The ability to move quickly on acquisition opportunities often determines whether you secure the deal or miss out.

By reducing equity locked into live projects, a 72% LTGDV structure keeps your liquidity fluid, enabling you to:

Seize off-market land opportunities that require quick decisions.

Negotiate from a position of strength, without the need for complex funding contingencies.

Outbid competitors on strategic sites without stretching balance sheet risk.

In a market where prime development opportunities are highly contested, this flexibility can be a key competitive advantage.

Scale Up to Larger and More Complex Schemes

Many seasoned developers aspire to step up the ladder, moving from small or mid-sized residential schemes into larger, mixed-use developments, PRS/Build-to-Rent schemes, or urban regeneration projects.

These projects often:

Require higher capital commitments.

Involve longer delivery timelines and planning complexities.

Have higher gross development values, but also higher risk profiles.

A higher LTGDV facility can bridge the funding gap, reducing the equity barrier to entry and enabling you to take on more ambitious schemes without jeopardising the financial stability of your business.

Stay competitive in a crowded market

In today’s UK market, especially in high-demand areas such as London, the South East, and regional growth hotspots like Manchester, Birmingham, and Leeds, land deals move quickly. Vendors and agents favour buyers with demonstrable funding certainty, and the ability to deliver.

A higher LTGDV deal structure often accelerates the funding approval and drawdown processes, because:

It’s underwritten with a clear understanding of the developer’s track record.

Lenders are often relationship-driven, offering bespoke, streamlined processes to repeat borrowers.

This can give seasoned developers a reputation advantage, enabling preferred bidder status and early access to prime sites.

Why Assetz Capital is comfortable offering up to 72% LTGDV to experienced developers

Not every developer will qualify for 72% LTGDV, but those with:

A proven track record of delivering profitable schemes.

Strong professional teams (PM, QS, contractors, agents).

Clear and robust exit strategies (pre-sales, pre-lets, or forward funding).

A deep understanding of risk management and cost control.

… will find that we are prepared to stretch leverage in recognition of their low-risk profile.

That’s because we know that that:

Experienced developers are less likely to encounter delays that jeopardise funding timelines.

Their GDV estimates are grounded in realistic comparables and market knowledge.

Their cost management is rigorous, reducing the risk of overruns.

Things to be mindful of

Of course, higher leverage comes with increased financial commitments:

Higher interest rates to reflect increased lender risk.

Tighter financial covenants and monitoring requirements.

The need for a robust exit—whether through sales, refinance, or retention.

However, for developers used to running tight ships, these risks are manageable and often offset by the strategic benefits of capital efficiency and scale.

Final thoughts: leveraging 72% LTGDV for strategic growth

For experienced housebuilders and developers, access to 72% LTGDV development finance isn’t just about increasing the debt stack—it’s about unlocking a strategy for scale, speed, and superior returns.

The combination of reduced equity requirements, enhanced ROE, greater liquidity, and improved deal agility positions experienced developers to capitalise on market opportunities while maintaining control over their pipeline.

If you have a track record and the professional team to deliver, exploring higher LTGDV facilities should be on your radar. In today’s dynamic market, it’s a smart play for experienced operators ready to take their portfolio to the next level.

If you have a development project that needs financing, why not give our New Business Team a call on 0800 470 0430. Or you can email them using newbusiness@assetzcapital.co.uk.

Alternatively, simply complete the short form below and one of our expert team will get straight back to you.