Joint Property Purchase
If a number of members with GPC SIPPs wish to use their pension funds to collectively purchase a property then this can be achieved by the individual SIPPs joining together to purchase the property. We will also consider a joint property purchase including a connected or third party with a GPC SIPP. A declaration of trust will need to be drawn up by the solicitor which will protect each SIPP member’s interest in the property. Each SIPP will have its own individual bank account; we will also establish a property bank account.
The property will be jointly owned by the trustees of each SIPP and the percentage interest each member has in the property will be specified when the property is purchased. This will be determined by the contribution each member’s SIPP makes to the property purchase. Subject to certain HMRC restrictions the percentage allocation of the property can be altered in the future, subject to the property being valued by a chartered surveyor.
Rental income (less borrowing costs and expenses) held in the property account will be distributed to the individual SIPP trustee bank accounts on a regular basis in accordance with the percentage holding each member has in the property.