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Use of Pension Funds as Security
David4syth
Posts: 1 Newbie
Hi All
My wife and I are hoping to buy a hotel and would like to use a proportion of my pension fund as collateral. At present I have circa 140k in 4 frozen pension funds, which are to be consolodated into one main scheme in the near future. Does anyone have any ideas how I could use this as collateral or provide for a trustee scheme in order to release the funds as working capital for my new business venture?
Thanks
My wife and I are hoping to buy a hotel and would like to use a proportion of my pension fund as collateral. At present I have circa 140k in 4 frozen pension funds, which are to be consolodated into one main scheme in the near future. Does anyone have any ideas how I could use this as collateral or provide for a trustee scheme in order to release the funds as working capital for my new business venture?
Thanks
0
Comments
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You could investigate buying the business premises in a SIPP and using the pension funds towards that. The business would have to satisfy the trustees and it wont be cheap but it would allow you to use the £140k towards the purchase which you couldn't do otherwise.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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You cannot offer pension assets as collateral. The assets cannot be charged or assigned.
Years ago, lenders would lend on the back of pension assets - but they have never been able to register a formal charge, in the same way as they can over property.Warning ..... I'm a peri-menopausal axe-wielding maniac
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dunstoh may correct me on this but I thought you could have joint ownership where you own a fraction of the hotel directly and the SIPP owns a fraction.
Alternatively, you could carve out a short lease to the SIPP which because it is only short would only cost the SIPP a low amount.0
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