Move from EPP to SIPP

randan

I am told that I currently have an Executive Pension Plan (not very much in it yet!!!) and I would like to use this towards the deposit to buy a property for my pension.

Again I am told that to do this I would need to change the EPP into a SIPP.

Does anyone have any idea :-

a) Is this correct?

b) Can I do this my self?

c) How much will the pension be able to borrow to pay for a property?

d) What are the charges are likely to be for i. going from EPP to SIPP ii. buying a property (are there more costs that there would be if I was buying the property myself?

e) Does anyone have any better suggestions?

Thanks very much in advance for any thoughts/help/advice.

EdInvestor

randan wrote:

I am told that I currently have an Executive Pension Plan (not very much in it yet!!!) and I would like to use this towards the deposit to buy a property for my pension.

Not possible, a pension is to provide an income when you retire and funds cannot be accessed before aged 55.

Again I am told that to do this I would need to change the EPP into a SIPP.Does anyone have any idea :-

a) Is this correct?

No.There was a plan to allow Sipps to have property in them, but this was cancelled.

e) Does anyone have any better suggestions?

If you feel returns from property will be good, then why not invest part of the money in your EPP in property funds? These funds invest in commercial property, not residential, but have actually produced even better returns over the last few years at comparatively low risk.

randan

Sorry - I didn't make clear what I was meaning.

I think within a SIPP there is the facility to purchase commercial property and that is what I would like to do - have the pension buy some commercial property using the current value of the pension as the deposit and a loan to pay for the rest.

dunstonh

purchasing of commercial property within a SIPP is a complicated transaction that really needs to be looked at by both the accountant and an IFA. It isnt an everyday transaction. Last one I looked at was last year and between myself and the accountant we decided it wasnt worth it for the particular individual we were looking at.

The benefits to some, especially start up businesses where you can use your pension fund to buy the commercial property you need with your pension, is great. However, there are caveats that need to be considered.