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Buying commercial property – what’s involved

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The following is a summary of the property purchase process. 

The first step to buying a commercial property is to apply for The Pointon York Individual SIPP (if one is not already in place) and to complete a property purchase questionnaire.

Ordinarily, the property questionnaire will provide all the information we need to start the purchase process. It is this document that provides the written instruction to Pointon York to start the process.

Buying Commercial Property Diagram

  1. Solicitor – Unless we are told otherwise, we will appoint a solicitor straightaway; either the nominated solicitor or one we have chosen on the member’s behalf. A copy of the solicitor’s terms of business will be forwarded to the member(s) for signature before we proceed.
  2. Environmental Report – We arrange a standard Environmental Risk Assessment that is usually sufficient for all UK properties. Please note contracts cannot be exchanged until we have received a satisfactory report.
  3. Survey – We can instruct a surveyor on the member’s behalf or the member can instruct a surveyor directly. It is important to remember that if there is to be borrowing, the lender is likely to insist on a surveyor from their own panel.
  4. Borrowing – Borrowing must be restricted to amount not exceeding 50% of the net value of the pension fund in question. There are severe tax consequences if this limit is breached.
  5. VAT – If applicable, we will register the property for VAT.
  6. Insurance – Crescent Trustees Ltd will, as landlord, insure the property under its block insurance policy. Cover will commence either with effect from exchange or completion. If you wish to view the full policy wording click here.
  7. Managing agent – In certain circumstances we will require appointment of managing agent who will deal with matters such as issuing rental invoices, rent collection and rent reviews. Our Professional Property Services can manage your property for you.  
  8. Co-ownership agreement – where property is jointly owned, either by two or more SIPP members, or by SIPP members and a third party; a co-ownership agreement between all parties will be required.

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Pointon York House
Welland Business Park
Valley Way
Market Harborough
LE16 7PS

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01858 419300
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01858 419400
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enquiriesmh@curtisbanks.co.uk

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Pointon York SIPP Solutions is a division of Curtis Banks Limited authorised and regulated by the Financial Conduct Authority.