Expert View: Legal considerations when buying property through a Self-Invested Personal Pension (SIPP)

PUBLISHED: 12:02 26 February 2018 | UPDATED: 12:02 26 February 2018

Steven Haynes, commercial property lawyer at HRJ Foreman Laws Solicitors

Steven Haynes, commercial property lawyer at HRJ Foreman Laws Solicitors


Steven Haynes at HRJ Foreman Laws Solicitors highlights some key legal considerations if you’re considering investing in property via a SIPP.

A SIPP can be a tax efficient way of investing in commercial property, particularly for business owners who can buy their business premises through a SIPP and then lease the premises back to the business.

No shortcuts – Where the SIPP is buying your business premises, you might want limited paperwork and a low legal cost on the basis that you already own and are familiar with the property. The difficulty is that most purchases are with a mortgage so the solicitor must issue a ‘certificate of title’ to the lender confirming all is in order. Even if there is no mortgage the professional SIPP trustee will require a similar certificate. A solicitor can only give the certificate by doing a thorough title investigation.

Hidden problems – You might use a property for many years without a problem but that doesn’t mean the property is suitable for a mortgage. An example might be an undocumented right of way. A professional trustee or lender is likely to classify such an issue as a title defect and require it to be addressed. This can sometimes cause tension between a client who considers something to be ‘no issue’ and the trustee or lender who requires the solicitor to fix it.

Extra lawyers - To buy your premises in a SIPP and then lease them back will probably need two solicitors – one acting for the SIPP (and any lender) and one acting for your company. The SIPP (and lender) won’t generally agree to the same solicitor acting for both parties, which increases the legal costs.

Plus extra paperwork – SIPP providers must comply with regulatory requirements, which can sometimes seem like extra layers of bureaucracy for a client. The more helpful you can be in providing information, the easier the process is likely to be.

If you’re considering using a SIPP to buy a commercial property, ensure you choose a firm with experience who can help make the process as smooth as possible.

Tel: 01462 458711

More news stories

Personal debt levels in Harpenden rose by 11 per cent in the three months leading up to October.


A retirement development in St Albans held a Remembrance Day lunch to mark 100 years since the end of World War I.


Court results published by the Herts Ad are taken from St Albans, Stevenage and Hatfield Magistrates Court and are published without prejudice.

Yesterday, 17:00

Two St Albans mums are hosting a one day pop-up vintage clothes shop to help fund a charity fashion show next year.


Read the Herts Ad Property e-edition E-edition


Get the latest St Albans and Harpenden property news and features straight to your inbox with our regular newsletter

I am also happy to receive other emails...
Fields marked with a * are mandatory
Email Marketing by e-shot



e.g. Oxford or NW3
Powered by Zoopla