Environmental risk management firm GroundSure has set up a service for Sipp clients investing in commercial property.
It is designed to protect people who want to put commercial property in their Sipp against risks such as contaminated land.
The product uses the firm’s digital mapping and historical land use database which has 800,000 high-resolution historical maps to provide an environmental screening report. This is designed to enable investors to make an accurate assessment of all environmental risks and avoid liabilities.
Reports will be compiled for each property that is part of the Sipp. Each report costs around £200 and includes identifying risks, legal advice and a quote for an environmental insurance policy. GroundSure says it has already struck a deal with a Sipp provider.
Managing director Paul Livett says: “Today, investing in property is widely acknowledged as being one of the safest and best-performing investments available.
“Not many investors are aware of the potential danger of acquiring commercial property, which have often had many years of industrial use, and could have been exposed to major pollution and land contamination problems. If contaminated land is identified, then an innocent trustee can face the entire bill for clean-up costs.”