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.