Case Study: Bridging Finance of €385k provided in Meath

Onate received an inquiry in Q2 of 2022 in relation to the refinancing of existing debt and providing an equity release in order to fully complete a former public house in County Meath. The property had undergone extensive works in order to renovate it into five self contained apartments of varying size from one bed to four bed apartments.

Onate issued an approval in principle and the promoter was keen to progress with our finance offering as they required the equity release in order to complete the property, including the kitchens, bathrooms and floor tiling. Due to the works being at an advanced stage, we didn't require our own engineers or quantity surveyor on site to supervise or certify these works. This was useful from the promoter’s point of view as it allowed full drawdown of the loan from day one.

Onate provided a facility of €385,000 in order to allow the promoter to refinance with another lender. The €385,000 provided the equity release required to finish out the property completely. Onate also provided a six month interest roll up period to allow the promoter time to rent the property and stabilise its income. The property was valued at €950,000.

Within a six month period, the loan has now been refinanced to another non-bank lender on a longer term agreement with the full rental income being used to amortise the loan.