SIPP/SSAS Lending

If you’re torn between investing in a pension or investing in property, then you may be pleased to hear that you can do both!

If you have a self-invested personal pension (SIPP) or a small self-administered scheme (SSAS) you can use your pension to purchase commercial property and receive a regular rental income. This rental income (along with any potential capital growth in the property) can then be used to increase the value of your pension fund for retirement.

You can borrow up to 50% of your pension pot e.g. if you have £200,000 in a SIPP/SSAS you can apply for a mortgage of up to £100,000 giving a budget of £300,000 to invest in commercial property.

If you run a trading business from a commercial property your pension fund could be used to own the property you trade from, with your trading business ‘renting’ it from your pension. This can have many tax advantages and speaking with a Pensions or tax adviser is crucial.