Case Study: €900,000 Property Purchase & Equity Release in Dublin

Onate has consistently provided loans to borrowers to purchase properties and to release equity. In some cases, a borrower will own an unencumbered property, which is a property that does not have any loan secured on it. They will then be able to release equity on this property and use the funds to purchase another property, or in the case below, to purchase two properties.

In July 2023, Onate was approached by a business owner who had identified and was sale agreed on two residential properties in Dublin. The promoter had received an approval in principal from another longer term lender but was advised that it would take a number of months to work through the due diligence and eventually, drawdown the loan. The promoter however, had secured a favourable deal for the properties on the basis that they were able to complete the transaction in weeks, and not in months. 

Once the application was received by Onate’s lending manager and reviewed by the underwriting team, a term sheet was issued within 24 hours of the initial discussion with the borrower. A due diligence fee was then paid by the borrower. The following day an all party call was scheduled with the borrower, Onate’s panel solicitor, the borrowers solicitor and the underwriters. A detailed plan was put in place which outlined what needed to be done and who needed to complete each task.

Onate’s experienced underwriting team also compiled a “banana skin” list which identified any potential risks that would delay the transaction. Having been involved in over 100 transactions, they have seen many of the common factors that delay transactions. Onate have the ability to highlight these on day one. This is a key factor in getting a loan closed quickly.

The promoter owned a commercial property worth €500k in Dublin and had recently gone sale agreed on two residential properties worth €1m. The residential properties were in good condition and the borrower had tenants ready to move in once the loan was completed.

Onate approved a loan of €900k and the transaction was completed within 4 weeks of the due diligence fee being paid.

The promoter then refinanced the loan with a longer term lender within the 12 month term.

Onate's bridging finance solution showcases the pivotal role of tailored financial products to unlock the potential of someone's property portfolio. Onate’s commitment to deliver a fast yes or no and follow through with pace has helped over one hundred borrowers achieve their goals.

 For those ready to explore new opportunities and in need of a financial partner, contact Michael Gavin at michael@onate.com / 085 145 4200 or John Ring at john@onate.com / 087 830 5276