SSAS (Small Self Administered Scheme) & SIPP (Self Invested Personal Pension) Mortgages
SSAS (Small Self Administered Scheme) & SIPP (Self Invested Personal Pension) Mortgages
Self Invested Personal Pension (SIPP) Mortgages: Regulatory Control for Financial Preference
SIPP’s operate on the same principles as SSAS lending but with a nuanced difference – regulatory control. SIPPs offer more regulatory control, making them the preferred choice for many mortgage providers. The enhanced control adds a layer of security and assurance, making SIPP mortgages an attractive option for businesses.
OPCO/PROPCO Structure: Separating Assets for Strategic Advantage
Consider the OPCO/PROPCO structure as a strategic move in property ownership. This setup effectively separates the property asset from the trading business. In this arrangement, the business remains the primary trading entity, while the property is held in a dedicated ‘holding company.’ The propco then leases the property back to the opco, providing operational flexibility.
EBITDA Assessment: Ensuring Financial Viability
When seeking a commercial mortgage for property acquisition, the finance provider assesses the EBITDA (Earnings before interest, taxes, depreciation, and amortization) of the business. This thorough evaluation ensures that the business possesses enough profit, liquidity, and security to support the commercial mortgage, fostering a sustainable financial arrangement.
RISK WARNING: Regulatory Considerations
It’s essential to note that while these mortgage options offer strategic advantages, the Financial Conduct Authority does not regulate most forms of commercial mortgage. Understanding the risks associated with these lending structures is crucial for informed decision-making.
Key Takeaways
- Tax-Efficient Acquisition:
- SSAS enables tax-wise property purchase within your pension scheme.
- Versatile SSAS Mortgages:
- Adaptable solutions for business or rental property acquisitions.
- Regulatory Edge with SIPPs:
- SIPP mortgages offer preferred regulatory control for added security.
- Operational Flexibility:
- OPCO/PROPCO structure separates assets, ensuring strategic advantages.
- EBITDA for Stability:
- Lenders assess EBITDA for profitable, secure commercial mortgage decisions.
- Regulatory Awareness:
- Note that FCA does not regulate most forms of commercial mortgages.
We get to know you and your needs and provide you with professional advice bespoke to your needs. No fuss, no nonsense, just 20+ years of experience.
Our advisers are qualified and trained in many areas of specialist property finance. Speak with them today to find out more about your project.
I'm an individual investor
Whether you’re an individual investor, entrepreneur or corporate executive, our client advisors are ready to help. We have a wide range of services available to fit your current wealth situation.
I'm a business client or an institution
We offer a wide range of products and investment services designed for the unique needs of professional service firms, financial intermediaries and charities.
Arrange a call with one of our advisers
We would love to hear from you and to discuss your enquiry. For a free introductory call to discuss your needs, call us 0117 251 0563 and ask for Ryan or Luke.