Buying Commercial Property Through a Pension

Our Commercial Property team work with business owners, pension trustees and professional advisers to keep pension-backed property transactions moving. We explain the legal steps clearly, identify property risks and coordinate with the pension provider, lender and surveyor.

A Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS) may be able to acquire commercial property as an investment. The pension scheme becomes the owner and may lease the premises to your business. Any lease to the business will normally need to be on market terms and comply with the requirements of the pension provider and relevant pension regulations.

Many business owners use pension arrangements to hold commercial property whilst their business occupies the premises under a formal lease.

Before proceeding, your advisers should confirm that the property is acceptable to the pension provider, that funding is available and that the arrangement supports your wider retirement and business plans. You should obtain specialist financial and tax advice, while we handle the legal aspects of the property transaction.

1. Agree the structure – Confirm ownership, funding and whether your business will occupy the property.
2. Obtain approval – The pension provider or trustees review the investment, valuation and any borrowing.
3. Investigate the property – We check the title, searches, planning position and occupational arrangements.
4. Document occupation – If your business will use the premises, a commercial lease will usually be required.
5. Complete the purchase – Once approvals, funding and documents are ready, contracts can be exchanged and completion arranged.

We investigate restrictions, rights, access, services, planning, environmental matters, existing leases and repair obligations. We also address any requirements imposed by the pension provider or lender.

If your company plans to occupy the property, the pension scheme will usually grant it a formal lease recording the rent, term, permitted use, repairs and insurance. A transfer of premises already owned by you or your business must also be treated as a formal property transaction.

A pension scheme may be able to borrow towards a purchase, and some acquisitions involve several pension funds or co-investors. These arrangements require early coordination between the legal, financial, pension and valuation advisers.

Our Commercial Property team can assist with:

• SIPP and SSAS freehold or leasehold acquisitions
• Transfers of existing business premises into a pension scheme
• Title checks, searches and due diligence
• Leases to an occupying business
• Property finance and lender requirements
• Coordination with pension administrators and other advisers

We provide practical advice, respond promptly and keep all parties focused on reaching completion.

Whether you are buying your first business premises, looking for owner-occupied space or considering commercial property as part of your wider pension and retirement plans, our experienced solicitors can support you.

We provide practical, commercially focused advice, respond promptly to enquiries and work closely with all parties to help transactions progress smoothly towards completion. By working closely with you, your pension provider and your professional advisers, we help keep each stage coordinated and your transaction progressing with as little stress as possible.

If you are considering purchasing commercial property through a SIPP or SSAS, contact the Backhouse Solicitors team in Chelmsford or Leigh-on-Sea to discuss your plans.

Tel:      01245 893400 | 01702 410880
Email: info@backhouse-solicitors.co.uk
Visit our Chelmsford office: 17 Duke Street, Chelmsford, Essex, CM1 1JU
Visit our Leigh-on-Sea office: 105 Broadway, Leigh-on-Sea, Essex, SS9 1PG
Or send us a message through the Contact Us page on this website