The weird and wonderful: Eight types of unusual properties owned by our SIPP members
When we think of SIPP (Self-Invested Personal Pension) property purchase thoughts naturally turn to offices, factories and retail units. Over the years though we’ve helped many people buy far more unusual properties in their SIPP.
We received great feedback earlier in the year when we wrote about the seven types of land you might not know you could buy in a SIPP so, we thought we’d give you a tour of some of the more unusual properties our SIPP members own.
1. A football club
Old Trafford, it certainly isn’t, but we’ve helped two members buy a football club in their SIPPs, which now own the clubhouse, changing rooms, pitch and surrounding land.
It’s a great example of two SIPPs being used to purchase a property which would otherwise have been unaffordable.
2. A cemetery
One of our SIPPs owns land which is currently being tested with a view to being used as a cemetery. If the results are favourable, a lease will be granted allowing a third party to use the land as a cemetery with rent being paid to the SIPP.
3. A music studio
A client in the entertainment industry used their SIPP to purchase a music studio. A lease, for a market rent, was then put in place between the SIPP and the client’s company.
We regularly help SIPPs buy or build barns and stables, which can then be used for a variety of different business purposes.
For example, a husband and wife recently bought farmland within their SIPPs on which they built a high-end stable complex and training area. Naturally, their business pays a market rent to the SIPPs, but it allowed them to develop premises which wouldn’t have otherwise been possible.
5. An airfield
We like to think we help all our members fly high, but one took it to the next level when they used their SIPP to purchase an airfield, including the hangers used to store planes.
6. Almost anything you see on the High Street
As our high streets change, we’re seeing a growing number of members use SIPPs to buy property from which their business can trade.
We have members who own a variety of high street premises, including cake shops, cheese shops, and beauty salons. Others have bought coffee shops and fast food franchises as well as banks and supermarkets.
7. Pubs and restaurants
Unsurprisingly, these are our favourite type of purchase when we are most likely to insist on an on-site visit!
IPM SIPPS own several pubs and restaurants, either independently owned and managed or via breweries and restaurant chains. These types of purchase are also the ones where we are most likely to consider a part residential usage of the property.
8. Care homes
The issues around residential property make purchasing a care home in a SIPP tricky.
However, it can be done. The key is demonstrating that the property is being used for commercial purposes and that the local authority has given its permission for the building to be used in that way.
Talk to us
At the time of writing IPM SIPPs own 922 properties. Most of these are the more traditional properties you would expect a SIPP provider to own. However, as the list above shows, there are occasions when we get more unusual requests.
Providing they aren’t overseas or wholly residential in nature, we are happy to consider all property types from traditional offices, factories and retail units to cemeteries, sports clubs and airfields.
The key thing is to speak to us. If your client has unusual requirements, pick up the phone to our property team, they’ll be delighted to chat through the options.