Commercial Mortgages: Commercial Property In Pension

There are a number of benefits of putting property into pension funds. There is no capital gains tax payable on the sale proceeds of a property held in a pension fund and as long as mortgage and contribution limits are not exceeded. There is no limit to the number of properties that can be purchased within a pension fund. VAT is also reclaimable for any property improvements and pensions can be paid from any rental income. Legal expenses can also currently be paid by the pension fund.

Previous rules had permitted borrowing of up to 75% of the value of the commercial property however after April 2006 the maximum borrowing is restricted to 50% of the total net value of the pension fund.

As more people are expected to look at commercial property investments within their pension funds, more mortgage providers are gearing up to lend money to fund this type of purchase. If you would like to talk to an adviser about borrowing money for commercial property for a pension or for any other purpose, please complete a Mortgage Enquiry Form above and we will arrange for one of our specialist mortgage advisers to contact you. Alternatively, you can call us on 0845 108 0505.