Need knowledge! Sipp,domestic mortgage and commercial mortg

POSSETTE

Hello Glad to be back

I havent been on here for ages, but now need some help peeps...I want someone /anyone who has knowledge of arranging a sipp with a commercial mortgage, and also a domestic mortgage too..buying a business with a house too. Many thanks in advance,

Thrugelmir

Care to provide some more information..........

As that's a very broad statement.

POSSETTE

ok...buying a kennels business and a bungalow, want to use partners SIPP of 60k with a commercial mortgage to fund the 175k...then get a domestic mortgage on the 300k bungalow..we have 95k in cash in the next few weeks...the business is on a separate land reg title to house, but obviously they are together.

Thrugelmir

Do the finances work out?

The SIPP will need to charge the business a commercial rent i.e. there needs to be a full tenancy agreement at market rent.

Then there's £200k of residential mortgage that will need to funded from after tax profit from the business.

I'm sure Holly Hobby will be along soon to give advice on the mortgage aspects.