Loan Against Property and LTV Calculator
Owners think in market value. Banks think in loan to value against their own valuation. This shows you the gap before you apply.
These are approximate numbers worked out from what you entered. For an exact, government approved valuation report that a bank, court, tax officer or embassy will accept, talk to us.
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Why the sanction is always lower than the owner expects
An owner values a property at what a keen buyer would pay after a proper marketing period. A bank values it at what it could recover if the borrower stopped paying and it had to sell quickly.
Those are different questions with different answers, and the second one is always the smaller number. That figure is called the forced sale value, and it is what actually drives a loan against property.
On top of that the bank applies a loan to value limit, lending only a fraction of its own figure. Two conservative steps stack, and the sanction lands well below what the owner had in mind.
Why property type changes everything
A self occupied flat in a good residential colony has a deep pool of buyers and sells reasonably fast, so it is lent against most generously.
A shop or office is harder. The buyer pool is smaller and more sensitive to the economy, and banks discount accordingly.
An industrial shed is harder still, because the number of people who want that specific building in that specific location is small. Bare land is treated cautiously for a similar reason, and because it produces no income while the bank holds it.
A tenanted residential property sits somewhere in between, and a difficult tenancy can pull it down further.
What actually moves the valuation upward
Not argument. Evidence.
Recorded sales of genuinely comparable properties, correctly identified. Accurate measurement rather than a rough estimate from the plan. Proper credit for construction quality and for improvements you have made. A clear picture of the title and the approvals, so the valuer is not obliged to be cautious about a gap.
Where a property is genuinely worth more than a hurried panel valuation says, a properly evidenced independent valuation is what closes that gap. It gives you something concrete to put in front of the credit team.
Before you apply
Get the property valued independently first, in bank format, with market and forced sale value both stated.
You then apply knowing the number rather than hoping. If the figure is lower than you assumed, you can restructure the request, add security or approach a different lender, all of which is easier before a formal application than after a reduced sanction.
Questions people ask us
- How much can I borrow against my property?
Commonly 50 to 65 percent of the bank valuation, depending on the property type. Residential is lent against most generously, commercial less, and industrial or bare land least, because they take longer to sell.
- What is forced sale value?
What the property would fetch in a quick sale rather than a properly marketed one. It usually sits 10 to 20 percent below market value, and it is the figure that drives a loan against property.
- Can I challenge the bank valuation?
You can put a properly evidenced independent valuation in front of the credit team, with comparable sales identified and measurement done. Evidence sometimes moves the number. Argument does not.
- Does a tenant reduce what I can borrow?
It can. A tenanted property is harder to sell vacant, and a long or protected tenancy reduces the pool of buyers, which shows up in the forced sale value.
Checked by Parish Rao, Chartered Engineer and Government Approved Valuer.
Page last checked on 27 August 2026.