Joint SIPP Ownership of Commercial Property

A single pension may not be big enough to buy the property you want. Several SIPPs, or a SIPP and a SSAS, can club together to own one commercial property.

Pooling pensions

Two or more pension schemes can jointly own a commercial property, each holding a share proportionate to what it put in. This lets business partners buy their premises through their respective pensions, or family members combine funds.

How ownership works

The schemes hold the property as tenants in common in agreed shares. Rent, costs and any borrowing are shared in the same proportions. A clear co-ownership agreement sets out how decisions are made, what happens if one member wants out, and how a sale or a member's retirement or death is handled.

The benefits and the cautions

Pooling opens up larger or better properties than any one pension could afford, and keeps the tax advantages for each scheme. The caution is governance: disputes between co-owners, or a member needing to draw benefits, can be difficult without a solid agreement in place from the start.

Structure it carefully

Joint ownership across pensions needs legal and regulated financial advice and a well-drafted agreement. It combines with splitting title and borrowing in more complex deals. See SIPP commercial property.

Can several pensions own one commercial property?

Yes. Two or more pension schemes can jointly own a property, each holding a share proportionate to what it put in, with rent and costs shared in the same proportions.

What should a joint ownership agreement cover?

How decisions are made, what happens if a member wants out, and how a sale or a member's retirement or death is handled.