The Pension Scheme Lending service provides specialist advice in dealing with property elements of pension schemes – in particular lending transactions for SSAS and SIPP schemes.
The service regularly advises SSAS and SIPP funds on a range of issues including property purchasers, leasebacks and loans from SSAS's and SIPP's (which may be secured against all types of assets ranging from residential premises to agricultural machinery).
The service works closely with pension trustees and their advisors ensuring that transactions complete quickly, smoothly and comply with HMRC requirements (avoiding potentially substantial penalties).
Recent pension scheme lending work includes:
- Acting for a SSAS lending capital to its sponsoring employer (a chain of boutique hotels). The security was to be charged on a residential property (considered higher risk of triggering a penalty for unauthorised payment). The property belonged personally to one of the sponsoring employer directors rather than being a company asset.
A complication arose when it was discovered that the property being used to secure the assets was unregistered and that the deeds could not be located. Following a series of enquiries and investigations the deeds were tracked down enabling a first registration. During this process searches revealed that the property was subject to at least one legal charge. This had the potential to result in substantial penalties on the fund if the new charge was not able to be registered as a first charge and was resolved.
The new legal charge was drawn up specifically tailored to the situation (a third party securing loan) and it was ensured that in the event of default of the loan the pension fund would not become mortgagees in possession - which again would have serious tax implications.