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Using pension to buy a house?

Hi all,

Can anyone tell me if it is possible to use 200K from a personal pension account to purchase a house (which would be used as a 2nd home and then sold prior to retirement to help fund a pension in retirement)?

Thanks

Comments

  • Andy_L
    Andy_L Posts: 13,160 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No. pension funds can only be used to purchase commercial property not residential. It was going to be possible to hold residential property (eg BTLs/Holiday lets) but it was decided against at the last minute.
  • Thanks Andy. I wonder could I get away with it if I was also running my business from home?
  • Cook_County
    Cook_County Posts: 3,096 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    However a UK pension can buy raw (undeveloped) land but must sell it once development starts.

    Given the value once planning consents have been obtained will increase you could still buy land for a future second home...
  • dunstonh
    dunstonh Posts: 121,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thanks Andy. I wonder could I get away with it if I was also running my business from home?

    No. The trustees of the SIPP that you would have to use would not allow it.
    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.
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