Is it possible to buy land using a pension?

k12479

I would also assume there's no problem in the short term. But longer term getting it out of the SIPP and merging the titles will at best take a bit more time and expense. Potentially you could also end up with less desirable outcomes if for some reason you need to sell or depending on your will/inheritance plans.

Grumpy_chap

Bartoni79 said:

Im 50 and I have about 30k in the sipp so im not able to draw down. 

I don't think you can do what you want to do in any case.
BUT, if it is possible to use £25k within the pension to buy the garage, after legal costs you may well have converted all of this SIPP fund into the garage and have no cash remaining in the pension.
Presumably, when you can draw your pension, you (as an individual) will have to buy the garage from your pension fund so that you (individual) will be able to draw monthly pension and you (individual) will be able to vest the garage (now connected to your house) as and when.

Is the £30k SIPP your entire pension provision, other than SP?

Bartoni79

Grumpy_chap said:

Bartoni79 said:

Im 50 and I have about 30k in the sipp so im not able to draw down. 

I don't think you can do what you want to do in any case.
BUT, if it is possible to use £25k within the pension to buy the garage, after legal costs you may well have converted all of this SIPP fund into the garage and have no cash remaining in the pension.
Presumably, when you can draw your pension, you (as an individual) will have to buy the garage from your pension fund so that you (individual) will be able to draw monthly pension and you (individual) will be able to vest the garage (now connected to your house) as and when.

Is the £30k SIPP your entire pension provision, other than SP?

Thanks. In answer yo your question, I have another work pension.

PaulCooper

Hi
The advice I have had from my SIPP provider is--- yes residential land can be purchased by a SIPP (providing it doesn't have a residential dwelling on it) but----- if the land is adjacent to where you already live my SIPP provider saw this as an investment 'not at arms length' therefore wouldn't allow me to do it.
Isn't it simpler to borrow more against your existing property (if the equity is available of course)
Paul 

Bartoni79

PaulCooper said:

Hi
The advice I have had from my SIPP provider is--- yes residential land can be purchased by a SIPP (providing it doesn't have a residential dwelling on it) but----- if the land is adjacent to where you already live my SIPP provider saw this as an investment 'not at arms length' therefore wouldn't allow me to do it.
Isn't it simpler to borrow more against your existing property (if the equity is available of course)
Paul 

Ah so basically as it would be attached to the house it’s not classed “as arms length”. But if it was 2 miles away it would qualify?

Albermarle

This seems to make the rules pretty clear.
Seven types of land you might not know you could buy in a SIPP - IPM Pensions (ipm-pensions.co.uk)

Bartoni79

That’s very helpful and it clearly answers my question. Many thanks