SIPPs - Syndicated property purchase

You can combine the funds of more than one SIPP holder to purchase a property - ideal for Professional Premises such as Surgeries, Offices, and Chambers.

Some key points to be considered for a Syndicated SIPP purchase:

The tax position of each plan holder will need to be considered
Insurable interest will need to be considered
Insurance of the property and the tax position on this should be considered
The value to each investor depends on their own circumstances

Each SIPP is etitled to a percentage of the property based on the payment towards purchase and costs.

Income

Each SIPP will receive rental income in proportion to it's percentage ownership of the property.

Communication

One SIPPs holder should act as the point of contact with the SIPP provider.

Ownership

This can be altered on written instruction from all shareholders.

Borrowing

This will be set up as a single arrangement with each SIPP allocated a percentage of the borrowing. Each SIPP will be subject to it's own borrowing limits
(50% of the net SIPP value).

Realising the investment

A shareholder could realise their investment by being bought out by other members. Or they could be bought out by a new member joining.