Back to Homes under the Hammer – who can ignore the sense of excitement when bidding for a property? Lots of bargains can be obtained at auctions and there are loads of auction houses around the country to choose from. It can be a really exciting prospect if you have an interest in developing or investing in commercial property to discover that your pension fund could unlock this opportunity. It is of course necessary to ensure that your pension fund has sufficient funds in place as a successful bid does result in a legal commitment to buy. How to: Most auctions provide full details of their properties online. Therefore you can browse various sites and get full details of any properties that are of interest. The online information will include a full legal pack and this can be shared with your pension provider to ensure that the property is suitable. You can then simply go along to the auction and make sure you raise your paddle at the right time! Following a successful bid, it is normally necessary to pay an immediate 10% deposit, which your pension scheme can reimburse and it can then arrange full property completion and payment of the balance within the auctioneer’s required timescale. SOLD! TOYOUR PENSION FUND EXAMPLE Having browsed an auction site online, Jenny came across a local office building that would make ideal premises for her small bookkeeping business. She was aware that her Self-Invested Personal Pension could buy commercial property and alerted the pension provider to the opportunity. The auction’s website includes a link to a legal pack which provides comprehensive details of the property; after referral to their conveyancing solicitors, the pension provider confirmed that the property was suitable. Jenny attended the auction and her bid of £150,000 successfully secured the property; Jenny had to pay the £15,000 deposit immediately and she used her business account to settle the payment. The following day she informed her pension provider who reimbursed the deposit and instructed their solicitors to complete the purchase. On completion six weeks later, her business starts to trade from the property and at the same time a lease is set up so that all rental payments are made to Jenny’s SIPP. pension fund company To buy £135,000 Reimburse business account £15,000 VISIT www.morgan-lloyd.co.uk EMAIL tom.whitlock@morgan-lloyd.co.uk TEL 01275 813726 10 11