How to Be A Super Property Investor by Nilesh H. Gohil - HTML preview

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Loan-To-Value Formula (LTV)

The Loan-To-Value (LTV) is used to work out the ratio between your loan balance and the market value of the property resulting in a percentage.
This formula is used to calculate the Loan-To-Value.

Balance)of)Loan
LTV)%)=)))))))))))))))))X)100
Market)Value

For example a property with a market value of £100,000 with a remaining loan balance of £85,000 has a LTV of 85%.

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£85,000
LTV)%)=)))))))))))))))))X)100 £10 0,000