I was very surprised to see the statement that only three full Sipps offer
the facility for a mortgage to be taken out under a Sipp for investment in
commercial property in the Financial Product Reference in the May 24
edition of Money Marketing.
Certainly, our own Sipp – the Wolanski & Co personal pension plan – offers
this facility. And I think you will find that most, if not all, full Sipps
also offer this facility.
While some Sipps may package a mortgage facility as part of their
offering, most offer a completely untied facility, opening the Sipp to all
potential lenders, not just the one chosen by the “bundled” packages.
However, where you will find real differences is in the flexibility to
accommodate non-standard property transactions.
We have found, for example, that some of the very large Sipp providers
will simply turn down anything but the most straightforward property
transactions on the grounds that this is not permitted under guidelines.
The implication is that the guidelines in question are the Inland Revenue's
whereas, in fact, the guidelines are their own.
In our own Sipp, we have successfully completed several property
transactions, covering joint ownership and/or overseas purchases, which
have been turned down by other Sipp providers. It is, of course, extremely
difficult to find out in advance exactly how flexible a particular Sipp
provider is in relation to property transactions but it is important for
IFAs to be aware that there are real and significant differences in this
Wolanski & Co Trustees, London