A tax efficient way to purchase commercial property for your own use, if you own a business or let to an unconnected party on a long-term lease.
POINTS TO CONSIDER WHEN COMPARING SIPP MORTGAGES AND SSAS MORTGAGES
- Manual underwriting;
- Can take longer to process due to the involvement of the pension trustee;
- Does the lender have a centralised unit that is used to the trustee’s documentation;
- If VAT on the building then you need to be VAT registered;
- Repayment mortgages are the most common.
- Three year’s accounts if an associated company will occupy;
- Details of the lease if let to an unconnected party;
- Trust Deed of Scheme.
- Minimum Loan £150,000;
- Available on an interest only, full repayment or part interest and part repayment basis;
- Loan terms vary from 5-30 years;
- Not available for residential property;
- Available to Small Self Administered Scheme (SSAS) and Self-Invested Personal Pension (SIPP);
- Maximum loan of 50% of the net value of the pension fund.