First National has introduced a commercial mortgage which enables
individuals to take advantage of the tax benefits of a self-invested
personal pension by investing in commercial property.
Its Sipp commercial mortgage allows policyholders to invest their pension
assets in commercial property and land, with no income tax payable on the
rent received by the Sipp and no capital gains tax to pay the later sale of
Loan to value ratios are based on a bricks and mortar valuation and can
reach 75 per cent of the property value.
The scheme is aimed primarily at purchasers of standard office, retail and
modern light industrial units, with likely borrowers including the owners
of businesses operating from the premises. The business tenant will pay
rent to the Sipp scheme under the terms of a commercial lease.
First National Commercial Banking director Jeff Watson says:
“Intermediaries can now source a Sipp commercial mortgage from a lender who
fully understands the commercial lending sector and their clients'
business. Having access to this new product will provide intermediaries
with a unique option.”