2025-08-04

LTV: What is it and what is the difference between frame and tranche LTV?

Every investor in an open project sees some key information that will help them decide whether to invest in that particular project. In addition to yield and rating, there is another crucial metric and that is LTV. We have recently modified the way we display LTV for tranches. Let's look at the detail.

What does LTV actually mean

LTV is an acronym for English phraseology loan-to-value. In practice, this is determined by the ratio of the loan amount to the value of the property, the investor will meet the value as a percentage. The LTV shows what maximum part of the value of the property we can give a loan to.

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For example, if the value of the property is CZK 10 million and the LTV is 70%, we will lend a maximum of CZK 7 million, i.e. 70% of the value of the property. In this case, we are talking about the LTV of the approved loan framework


What is LTV tranche

Outside the overall approved credit framework, we are still talking about the so-called. LTV tranches. This value shows what part of the value of the property we give credit to at a given stage of the project (tranche). And here comes the important information — the LTV value may vary for each tranche of the same project. The LTV of the tranche represents the value of the LTV at the time of the financing offer of that tranche.

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Tip: Read how to on Investown we divide projects into stages and tranches.

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What this means for investors

So far, we have only shown you a single LTV for projects, whether it is a one-off project or a tranche. As a rule, it was the highest possible value. For better clarity, we have introduced LTV tranches in addition to the framework LTV. This allows you to better decide what investment is right for you.

Oh, thanks LTV tranches you will see how much the collateral is encumbered in a given tranche and up to what% of the value of the property we can still provide finance to the client.


Tip: Wondering whether to invest on Investown? Only 3 simple steps lead to your first investment. Invest from 500 CZK.

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