Office Purchase Using a SIPP Commercial Mortgage

Positive Commercial Finance specialises in arranging SIPP Commercial Mortgages for business owners looking to purchase commercial property in a tax-efficient way. This case study shows how we helped two Independent Financial Advisers acquire larger office premises through their pension scheme.

The Opportunity

Our clients operated a successful firm of Independent Financial Advisers and had outgrown their rented office.

After an extensive property search, they found premises that perfectly suited the next stage of their business.

They initially approached several High Street banks for finance.

However, the process proved frustrating. Responses were slow, and few lenders fully understood the specialist nature of purchasing commercial property through a pension.

Identifying a Better Solution

Following an initial discussion, we reviewed the clients’ wider financial position rather than focusing solely on the mortgage.

It quickly became clear that both directors had substantial pension funds.

This opened up another option.

Instead of purchasing the property personally or through the business, they could acquire it through a Self-Invested Personal Pension (SIPP), creating a more tax-efficient ownership structure.

Finding the Right Lender

Not every commercial lender is comfortable lending to pension schemes.

Because Positive Commercial Finance works with a wide range of specialist lenders, we knew exactly which providers actively supported SIPP Commercial Mortgages.

We approached the most suitable lenders and negotiated a flexible funding package that complied with pension borrowing rules while meeting the clients’ commercial objectives.

Deal Structure

• Loan to Value (LTV): 50% (maximum permitted under SIPP borrowing rules)
• Interest Rate: 3.67% over Bank Base Rate*
• Arrangement Fee: None
• Term: 15 years

*Interest rate reflected market conditions at the time the facility completed.

The Result

The clients successfully purchased their new office through their pension scheme using a SIPP Commercial Mortgage.

The structure allowed them to secure larger business premises while taking advantage of the potential tax efficiencies associated with pension ownership.

This case study highlights how considering the wider financial picture—not simply the mortgage itself—can often lead to a better long-term solution for business owners.