Buying a commercial property using a SIPP for deposit

Marleyuk

Hi,

I have seen a commercial property that I am interested in valued at £350k. I have c.£100k in my SIPP.

Can my SIPP be used to pay the deposit for the property (25%), with the remaining 75% being borrowed by the SIPP?

If so, I assume this wouldn’t impact on my annual contribution limits?

Thanks,
Marley

MWT

Marleyuk said:

Hi,

I have seen a commercial property that I am interested in valued at £350k. I have c.£100k in my SIPP.

Can my SIPP be used to pay the deposit for the property (25%), with the remaining 75% being borrowed by the SIPP?

If so, I assume this wouldn’t impact on my annual contribution limits?

Thanks,
Marley

Do get some specialist advice, but I believe the borrowing limit on a SIPP is 50% of the value of the SIPP, so with £100k in it, the limit would be £150k property value, far short of what you would need for a £350k purchase...