Case Study: Bridging Finance of €925,000 provided in North County Dublin
This case study explores Onate's commitment to finding solutions to complex borrowing scenarios and their approach to providing a €925,000 loan for the refinancing of a prime residential property valued at €1,700,000 in North County Dublin.
The property was a 5,000 sq ft plus former family home. It presented some unique challenges including a judgment mortgage and structural issues that had recently been resolved. Onate's innovative financing solution, including a 12-month loan with an element of interest roll-up, facilitated the debt settlement with a fund. This enabled the borrower to sell the property on the open market, maximising their return and capturing their equity in the property.
The borrower had been battling with a fund for a long period of time and eventually secured a debt settlement agreement in order to close out their position with the fund. They sought to refinance their prime residential property, their former family home, aiming to settle the existing debt. During the due diligence phase, Onate identified two significant challenges that could impact the refinancing process:
Judgment Mortgage: An outstanding judgment mortgage was discovered which the borrower understood had been discharged some time ago. However, it had only been partly resolved with the creditor and the judgment mortgage remained in place. The borrower and their financial advisor had to re-engage with this creditor in order to bring this matter to a conclusion and deliver the property free of the judgment mortgage.
Structural Building Issues: In recent years, remedial works had been carried out in order to resolve some structural issues. Due-diligence was undertaken by Onate to satisfy themselves that this had been resolved and would not impact potential purchase of the property or the value of the property.
Onate proposed a tailored solution to meet the borrower's needs and the property's specific challenges. This was a 12-month loan of €925,000 with an element of interest roll-up. This approach allowed the borrower to avoid monthly interest payments for the full term of the loan. This strategy was designed to provide time to sell the property on the open market, aiming for a maximum return.
Onate's tailored debt settlement and refinancing solution demonstrated a deep understanding of the challenges associated with high-end property transactions. Through strategic financing, Onate assisted the borrower in capturing the equity in their former family home through the sale of the property.
For borrowers, property developers and investors seeking financial partners who understand the intricacies of property backed transactions, Onate's track record of delivering results is a testament to its reliability and expertise.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact John Ring john@onate.com or Michael Gavin michael@onate.com.
