SIPP Advice Please

Cheekychap_2

I have a SIPP with one commercial property only.
I've held it for around 15 years now with the same pension provider James Hay Pension Trustees. In the early days, when I had a mortgage to initially purchase the property, any excess cash that built in the cash fund attracted interest. Over time JHPT made many changes including who they banked with along with property management also. Subsequently interest stopped accruing and my very healthy cash fund earns zero interest. I paid off all borrowing around 10 years ago and I'm now going through a change of tenants with a new 10 year lease to commence shortly.
I believe that it's time to change my pension providers. I don't get any help or advice from my current provider. I will turn 55 in six months and would like to move my SIPP to someone who will advise me well and offer me better help. In particular my cash account stands in excess of £200,000 and does not attract any interest (for me that is). The new lease is worth £250,000 over 10 years. I pay over £1500/yr in admin and property management fees and I don't hear from them for years at a time. The building is currently worth around £250,000.
I don't know what other options are available. Any advice would be gratefully received.

dunstonh

I don't get any help or advice from my current provider.

And you shouldn't. They are not there to provide it.

I will turn 55 in six months and would like to move my SIPP to someone who will advise me well and offer me better help.

In which case you need an IFA. Changing the SIPP provider will not help you as SIPP providers are not advisers. Advice and product are two separate things.

No SIPP providers will give you advice as they do not hold the regulatory permissions to do this. They take instructions from you or from your adviser.

bigadaj

Cheekychap wrote: »

I have a SIPP with one commercial property only.
I've held it for around 15 years now with the same pension provider James Hay Pension Trustees. In the early days, when I had a mortgage to initially purchase the property, any excess cash that built in the cash fund attracted interest. Over time JHPT made many changes including who they banked with along with property management also. Subsequently interest stopped accruing and my very healthy cash fund earns zero interest. I paid off all borrowing around 10 years ago and I'm now going through a change of tenants with a new 10 year lease to commence shortly.
I believe that it's time to change my pension providers. I don't get any help or advice from my current provider. I will turn 55 in six months and would like to move my SIPP to someone who will advise me well and offer me better help. In particular my cash account stands in excess of £200,000 and does not attract any interest (for me that is). The new lease is worth £250,000 over 10 years. I pay over £1500/yr in admin and property management fees and I don't hear from them for years at a time. The building is currently worth around £250,000.
I don't know what other options are available. Any advice would be gratefully received.

You do know the s in sipp stands for self don't you?

Sounds like you need to speak to an ifa, though they won't be able to help much with the property I would have thought. They will charge and would be likely to recommend a move into diversified investments in primarily shares and bonds.

Are you paying James hay £1500 per year, and are they charging you for property management fees?

Cheekychap_2

Thanks for the responses. I kind of guessed an IFA would be my next step and so it shall be. I thought someone may have found themselves in a similar position and may have had some specific direction to advise.
I was 'steered' in this SIPP direction from a previous accountant when I owned the company that purchased the property. I sold the company to the management and kept the SIPP. The IFA that originally set up the scheme doesn't want to help me as they have merged several times and no longer deal with SIPPS. A new IFA should be able to look at my specific situation and answer any questions such as why doesn't my £200K gain any interest.

xylophone

Why is the cash not being invested? As far as I can see, interest on cash in SIPPS (where paid) tends to be at a very low rate.

dunstonh

The IFA that originally set up the scheme doesn't want to help me as they have merged several times and no longer deal with SIPPS.

Which means they cannot be IFAs. If there is any form of restriction then they are not allowed to call themselves IFAs.

A new IFA should be able to look at my specific situation and answer any questions such as why doesn't my £200K gain any interest.

Easily.

bigadaj

Just wonder whether many ifas would want to get involved.

In broad numbers then it looks like the OP has a commercial property valued at say £500000 and cash of £200000, and wants to keep the property.

This would mean using a non standard pension platform or provider, and the ifa wouldn't want to be able to advise on the property aspect.

Would the ifa simply give advice that the single property is high risk and the OP would be better selling and diversifying, and then accept that he is happy to continue with the property?

dunstonh

This would mean using a non standard pension platform or provider, and the ifa wouldn't want to be able to advise on the property aspect.

Advice is not needed on the property, as I read the post. It is on the excess cash.

Would the ifa simply give advice that the single property is high risk and the OP would be better selling and diversifying, and then accept that he is happy to continue with the property?

If the property is there for business reasons then it is not really an investment but a means to an end. If it is there for investment reasons then you can discuss and document diversification issues but ultimately, the decision is with the client. If they want the property then its fine.