Pension Finance
Boost your SIPP or SSAS Pension with commercial lending.
Our Directors have Small Self Administered Pension Schemes (SSAS) and have worked with Trustees of Self-Invested Pension Schemes (SIPP).
Many Trustees of these types of schemes have real estate in their investment mix. These schemes can borrow up to 50% LTV of the scheme’s Net Asset Value. We have access to lenders who can provide bridging and term finance for qualifying commercial property.
Due to planning Permitted Development rules in England, it can be an attractive proposition for a pension scheme to acquire a shop with vacant uppers. The uppers could be converted to residential to maximise value. However, a pension scheme cannot ordinarily (except for prescribed allowable use cases) hold residential property.
It could, though, take a bridging loan to develop uppers to a position where a practical completion certificate has not been delivered but works are advanced.
HMRC pension tax manual provides guidance on what would qualify as residential and therefore, if the asset is sold off before a practical completion certificate is issued, it is not deemed residential at that point.
We could help a developer who has a SSAS. The trustee could secure a bridging loan to develop the uppers and then sell them off to the trustee’s own development company for market value. A finish and exit facility could be arranged to allow the developer to complete the minor works required to then move the assets to term or sell.
We have the pension experience to help guide a trustee on this and can arrange for appropriate finance at all stages.