PPS launched Collaboration Agreement for Syndicated Property Purchase |

PPS launched Collaboration Agreement for Syndicated Property Purchase |
19th February 2009 , London: Premier Pension Services has today launched a “collaboration agreement” for Self Invested Personal Pension (SIPP) clients who want to take advantage of a syndicated property purchase.

Nigel Manley, Head of Self Invested Pensions, Premier Pension Services, says, “It is not always possible for every SIPP client to build up a large pension fund in a matter of a few years and the current borrowing limit of 50% of the fund often means there is a shortfall between the value of the SIPP fund and the price of the property together with associated costs. Where the figures do not stack up, one solution maybe for two or more SIPP clients (a “syndicate”) to come together to buy a share in a property.”

Although the process of buying the property on behalf of several clients is more complicated than normal purchases, there are not normally any major problems at the conveyancing stage. However, the future management of the property and what happens should a member wish to leave the syndicate can be problematic, unless of course this is clearly set out in an agreement at the outset. In Premier Pensions Services experience these problems can arise whether or not the SIPP clients are connected.

Nigel Manley concludes, “We are always looking at ways to support our IFAs and their clients and to be able to offer them the ‘Collaboration Agreement’, a document which we have spent considerable time developing with a respected and well known legal firm, will I hope, further enhance our reputation. In such an uncertain world, it can only be a good thing for clients to know what will

Comments are closed.