InvestAcc SIPP Lite

PocketMolly

Hello,

I wish to invest a lump sum in a SIPP for the first time. I have done quite a bit of research and it would appear that the InvestAcc SIPP Lite is the best option for the following reasons:

I want to invest in a deposit account within the SIPP as we may be buying a commercial property in the next few months.

This SIPP is low cost to set up and maintain and it easily allows conversion to a Minerva SIPP when the time comes.

The company allows commercial property within the Minerva SIPP.

The rate of interest is 0.75% for instant access and is with Newcastle BS (so is covered under the FSCS).

Does anyone have any reason why I shouldn't invest with this company or any better alternatives? Are they a safe company (and legitimate!)?

Many thanks.

PS. I have to do this within the next 2 weeks!

dunstonh

When buying property through the SIPP, you need to look at the administration and trustee requirements. Both at set up and ongoing. Have you done that?

PocketMolly

No. Is this necessary at this stage?

dunstonh

If you plan to do something and are using that provider for the convenience of doing that thing then it makes sense to check before you do it.

PocketMolly

dunstonh wrote: »

If you plan to do something and are using that provider for the convenience of doing that thing then it makes sense to check before you do it.

Sorry, but your reply is a little cryptic. As far as I'm concerned and as far as I have been advised by InvestAcc, I can open the SIPP Lite and then once I have a property, I can transfer the SIPP Lite to a Minerva SIPP which allows commercial property purchases. There is no transfer of Deed required and the trustees remain the same. I do have set up costs to purchase the property along with solicitor fees (less if I use their solicitors) and surveyor fees. They can arrange a mortgage on my behalf up to 50% of the fund value. Are you saying that there are other issues I should be concerned with specifically? If the commercial property does not transpire, then there are no exit fees should I wish to transfer the SIPP to another provider (with or without the help of a financial adviser).

dunstonh

. As far as I'm concerned and as far as I have been advised by InvestAcc, I can open the SIPP Lite and then once I have a property, I can transfer the SIPP Lite to a Minerva SIPP which allows commercial property purchases

Yes. However, have you checked the Minerva SIPP administrator and trustee requirements and costs are suitable. Just because SIPPs can handle property does not make them all equal. Different SIPPs will have their own rules on properties. Some will want task carried out (and paid for) that others will not.