Multiple Ownership of Property
Tom runs an engineering company and personally owns the premises from where he trades. The premises are valued at £500,000.
Times are hard at the moment and Tom is suffering cash flow problems for the short term.
Tom has built up around £100,000 in pension funds through various personal pensions and protected rights plans and has scheduled a meeting with his Financial Adviser to discuss his current situation.
The Adviser suggests to Tom that he could transfer his pension funds to a SIPP with Montpelier and use the SIPP to purchase part of the property back from Tom. The Adviser recommended Montpelier as they are one of the few SIPP providers who will facilitate this.
The situation now is that the SIPP owns 20% of the property and Tom has freed up £100,000 to help with his cash flow problems. The SIPP will receive a rent equal to 20% of the rental value.
Tom now has the option to either buy back that 20% at some stage in the future or he could move more of the property over to the SIPP depending on his situation.
Times are hard at the moment and Tom is suffering cash flow problems for the short term.
Tom has built up around £100,000 in pension funds through various personal pensions and protected rights plans and has scheduled a meeting with his Financial Adviser to discuss his current situation.
The Adviser suggests to Tom that he could transfer his pension funds to a SIPP with Montpelier and use the SIPP to purchase part of the property back from Tom. The Adviser recommended Montpelier as they are one of the few SIPP providers who will facilitate this.
The situation now is that the SIPP owns 20% of the property and Tom has freed up £100,000 to help with his cash flow problems. The SIPP will receive a rent equal to 20% of the rental value.
Tom now has the option to either buy back that 20% at some stage in the future or he could move more of the property over to the SIPP depending on his situation.
