Finance for Pensions
Buying a commercial property with your pension
We aim to ensure that we find you the best possible financial solution for your individual circumstances and by working with one of our team of SASS and SIPP Finance Advisors, we ensure we fully understand your requirements and gather the appropriate information to move your application forward.
SSAS and SIPP funding is where a pension fund purchases a commercial property.
The primary reason to purchase or hold property within a pension fund, SSAS or SIPP, is to maximise the available tax advantages.
Clients often look to do this in a number of ways but most typically clients look to buy a property in the pension scheme and then rent it back to their business and is a variant to commercial owner occupier lending. A formal lease is created between the two entities and an independent surveyor then determines what rent can be charged. The rent is then paid from the company in to the pension scheme and then the pension scheme repays the loan. The ability for the loan to be serviced comes from proving the profitability of the incumbent business which can be assessed by historical financial information.
An alternative to the above is commercial investment. In this instance, a commercial property is purchased using finance and a lease is then created at market value with a 3rd party tenant. It is important to do some due diligence around the tenant as it is the ability of that tenant to meet a rent payment that will determine whether the loan can be paid back.
Types of property include:
- Office blocks
- Care Homes
- Farms and Agricultural land
SSAS and SIPPs can invest in commercial property, but the borrowing is restricted to a maximum of 50% of the fund value. The purchase of a property in this way can be supplemented by borrowing the balance outside the pension fund – subject to the lender’s criteria. In this way, the borrowing could be on a joint basis, but with the ownership vested solely in the name of the fund.
As far as rates and terms are concerned, this is often determined by the strength of the tenant in the building and also the lease length and market rent payable.
2XL Commercial work in conjunction with some of the countries leading professional advisors and look to supplement their advice by providing commercial finance solutions.
It is vital that whilst you concentrate on your business, you don’t get hampered by reams of paperwork and countless phone calls. We will act from the point of enquiry to the release of funds, taking care of negotiations with the lender and over-viewing all documentation ensuring you the best possible deal in the marketplace for your circumstances from the extensive panel of lenders we work with. As full members of the NACFB and fully regulated by the FCA you can be sure you are dealing with trusted and fully regulated advisors.
If you would like to explore further any of the possibilities in this area then please do give us a call on 01625 421 976 or drop us a email with your enquiry details and name and contact number at email@example.com and one of our team of advisers will give you a call back.
Commercial and Business Mortgages
Thinking about buying your own premises? Or are you considering investing in a commercial or residential property? Whether it's buying, investing or expanding your current portfolio, a commercial mortgage may be the right solution for you.
Commercial - Business - Personal Insurance
Don't waste your hard work in business by not securing appropriate insurance to cover all risks. We can help you with Public Liability Insurance, Employee Liability Insurance, Professional Indemnity Insurance, Buildings Insurance, Debtor protection, Life & critical illness plus much more.
If you are looking to redevelop an existing site or to invest in building a new commercial or residential property, we can help you secure development funding. Our experts can also help you with options to reinvest or expand your portfolio.
Enterprise Finance Guarantee Scheme
At 2XL, we can help you buy a business or secure finance to start your own! Whether it's finance to purchase assets or to find alternative funding in the absence of security, find out more.
Finance for Pension Funds (SSAS or SSIP)
Are you looking to make your SSAS or SIPP work harder for you? Whether you are on the search for a new property to invest in using your pension scheme, we can help guide you through the process.
Finance for Professionals
Specialist industries deserve specialist advice. If you operate in any of these areas, then do get in touch to find out how we can assist you in sourcing and securing finance solutions. Our team have experience working with Doctors, Dentists, Vets, Pharmacists, Solicitors, Care Homes and Specialist care providers.
Business Loan and Peer-to-Peer Funding
Looking to expand your business with an immediate cash injection? Maybe to pay a tax bill or purchase new equipment? We can help secure funding to support your business including the purchase of a new business or ease cashflow.
Property Portfolio Funding
Whether it's a solution to refinance existing properties, purchase a new commercial or residential property or to search for stronger rates of interest to release cash, 2XL can help you find funding.
Looking to purchase new assets or equipment for your business? Whether it is a business property refurbishment, an update to your fleet or machinery or even adding that much needed van or car for your business, we can help you secure asset finance.