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Investing in commercial property

Buying commercial property via a pension scheme can be a tax-efficient way to inject cash into a business and provide regular income in the form of rent. Those planning to purchase property through their pension, should consider the following:

Prior to purchasing an acceptable property investment an independent valuation is required and must be provided by a RICS Surveyor and addressed to the Trustees.

It is possible to borrow up to 50% of the net value of the assets held within the pension scheme. You are able to borrow from most high street lenders, although all borrowing documentation must be agreed by us prior to a loan being taken out.

Adequate insurance cover through our Block Policy is preferable and must include owners liability insurance of at least £5m.

Rent must be paid when it falls due and subject to regular rent reviews.

Solicitors will be instructed to act for the Trustees to review and report on the Title and carry out any necessary due diligence.

We do not provide property management services. However, it is the responsibility of the pension members to put appropriate property management arrangements in place or the responsibility for property management will fall to the pension members themselves.


  • Taxable property including residential (dwelling houses), holiday apartments, beach huts, and caravans.
  • Residential Institutions
  • Secure Residential Institutions
  • Property that benefits from an aggregated income such as hotel rooms and storage pods.
  • Types of property where we are advised that there is no re-sale market, or we foresee management difficulties.
  • Properties with existing tenants with known historic rent arrears or other material breaches of covenant.
  • Any property where insurance is unavailable or inadequate in the insurance market for any reason, e.g. combustible composite panels, waste transfer and recycling sites, historic flooding, subsidence.
  • Land purchased from a third party which adjoins a member’s personal residence where the member or connected party may gain a non-relevant benefit, e.g. being purchased to preserve a view from their house or to stop someone else building, or to increase the value of their personal residence.
  • Properties at auction.
  • Properties with known unremediated environmental issues.
  • Freehold properties where part of the building comprises long leasehold residential properties even if let to third parties with nominal ground rent.
  • Land for residential development, garden land, etc.
  • Certain other residential institutions, e.g. student accommodation, care homes, etc.

Get in touch

If you have any questions about Embark Property, please contact us or call our sales support team on 01722 443742.