Since April 2006 an SIPP holder can borrow up to 50 per cent of the value of the commercial property for the acquisition of the property into the SIPP.
For example, if a suitable commercial property was valued at £300,000, there would have to be at least £200,000 in the pension fund to make the SIPP purchase possible.
There is a wide range of Commercial Property for suitable for SIPP investment. Property types include shops, industrial units, warehouses, offices and even car parking spaces.
A Syndicated SIPP can be an attractive solution where SIPP holders wish to club together to buy commercial property that would normally be outside their purchasing power.
Before investing in commercial property it is important that individuals make themselves aware of the risks involved and consider investment diversification, as with many things in life, it is not a good idea to have all your eggs in one basket.
For more information about SIPPs, please click one of the links to the left
or alternatively, click here to Contact Us with any queries.