SIPP Fund Property Investment
What is a SIPP?
A Self Invested Personal Pension (SIPP) is a specific mechanism than can allow you greater freedom over the types of investment you choose to build your pension fund; one of the options is commercial property. This can be a really tax efficient way to make an investment.
How do we provide legal support for your SIPP?
The SIPP process usually starts with an Independent Financial Advisor (IFA), who will provide guidance as to the best options for the investment of your pension fund. It is then down to us to deal with all of the property aspects, liaise with any funder and with the pension fund, whilst working closely with your IFA to complete the purchase of the property as quickly and smoothly as possible.
Is a SIPP right for me?
There are a few ways to invest your pension; using a SIPP to purchase a commercial property allows you to move your pension fund into commercial property as a long-term investment. If you are a business owner currently renting your premises then using a SIPP to purchase those premises can be the most tax effective way to own the property whilst building up your pension at the same time.
Can you use more than one SIPP to buy a property?
If you have multiple owners who each have their own pensions, the property can be purchased using more than one pension fund.
Can I use my pension to buy multiple properties?
If you have sufficient funds available in your pension it should be possible to use the fund to purchase more than one property, provided they are commercial properties.
How long does a SIPP transaction usually take?
As with any property purchase, the timescale is subject to a variety of factors, including the requirements of the parties, surveys and searches, and also the specific requirements of any lender involved. It is possible to complete the purchase in 4-6 weeks, but in most cases, it is more likely to be around 12 weeks, provided everything is in order.
How much does a SIPP cost?
As with standard property transactions there will be fees for the legal services on the commercial property side. There will also be fees for the IFA and the pension provider and of course searches and surveys as with any property purchase. Your SIPP should in most cases cover these standard professional fees and costs; this keeps the investment neatly organised with financial transactions for the property being directed from a single point. Most SIPPs also have a small monthly charge, this is something that you can speak to your IFA about.
Can I use a Pension to Buy a House?
In short no. The rules on SIPPs are very strict and tightly regulated, due to the tax benefits that they offer, and the purchase of residential property is not currently permitted.
Why Barton Legal?
We have completed dozens of SIPPs over recent years, and we understand all of the pitfalls, problems and potential issues that may arise in relation to these highly regulated transactions, and how to resolve them to ensure that your SIPP completes.
If you have any questions about an on-going or potential SIPP, or you are thinking about using your pension fund to invest in commercial property, please contact Trish Barton.
As established experts in dealing with and completing SIPP property purchases, Barton Legal has a team of experts to help and assist you in the process. If you would like an introduction to any of them, please get in touch with Trish Barton, who will be happy to assist you.