L3VLUP

Loan-to-Value (LTV)

The loan as a percentage of the property’s appraised value or purchase price, the first of the three constraints a real estate lender applies, commonly capped at 65% to 75% for stabilised commercial property. It is only as reliable as the valuation underneath it, which is why debt yield and coverage are tested alongside.

Where Loan-to-Value (LTV) comes up

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