Use of Pension Funds as Security

David4syth

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

dunstonh

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.

Debt_Free_Chick

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.

Cook_County

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.