Buying commercial property via a SIPP

Magna Wealth Management is offering a streamlined service for those wishing to speed up the process of buying commercial property via a SIPP, a Self Invested Pension Plan.
 
Often, as soon as the letters SIPP arise in a commercial property transaction, the professionals involved will subconsciously add weeks to any projected completion date because of perceived problems in purchasing through a SIPP – in this case, Self Induced Pension Panic.
 
Understanding how a SIPP purchase works and ensuring that the process is handled professionally and efficiently can mean that deals could be completed in as little as two weeks – but they rarely are.
 
The knock-on effect on stock turnover within the commercial property market of a fast-track SIPP purchase could be considerable, with a consequent effect on agents’ and law firms’ cashflow and profitability – not to mention a happy and satisfied client established in their new business premises.
 

Investing in a commercial property

At the risk of teaching grannie to suck eggs again, buying a commercial property with a SIPP is one of the oldest advantages of having a SIPP.
 
Many business owners can use a SIPP to buy their own business premises.  This allows for several tax advantages, from the growth of the property being free of Capital Gains Tax, to the fact that the rental income will be paid directly into the SIPP, hence allowing for further pension growth.
 
Borrowing to finance a commercial property is also possible via a SIPP, with most SIPP trustees allowing for borrowings of up to 50 per cent of the pension fund.  For example, if a pension fund was valued at £200,000, the fund would be able to borrow a further £100,000 and invest into a commercial property valued at £300,000.
 

Why choose Magna Wealth Management?

For a start, the directors of Magna Wealth Management, the UK trading style of Expat Pension Providers Ltd, purchased their new office headquarters in Warwickshire via a SIPP in January this year.
 
Angela South, the Managing Director, has extensive experience in financial services in a career stretching back over three decades. She has advised on a wide range of financial matters, including pensions and investments, specialising in Inheritance Tax.
 
Her rise up the career ladder has included juggling a career and single handedly bringing up three small children while maintaining a reputation as one of the top performers at companies such as Scottish Amicable, Prudential, Clerical Medical and Scottish Widows.
 
So SIPP purchases are second nature to one of nature’s natural multi-taskers.
 
For more information or to discuss how we can help your clients, call Angela now on 01789 490920, or email her on angela@magnawm.com