Ways to own commercial property in a SIPP with Curtis Banks
There are a number of flexible ways you can invest in and hold property with us
Individual purchase
This is where an individual SIPP is used to buy the whole property. We’ll open a separate property bank account as well as your SIPP bank account. Cash will be transferred between the two accounts to meet any expenses of owning the property.
Group Purchase
The whole property can be bought on behalf of more than one SIPP. If a number of clients need to borrow to fund the purchase only one loan agreement is required and liability for the loan is shared proportionately between the various SIPPs.
There will need to be a group investment agreement between the clients. This document sets out the property ownership and debt shares of each SIPP, as well as how properties can be bought, sold or transferred. On the Property Form you and the other members of the group will nominate a lead member for us to communicate with. This person must share the information we give them with the rest of the group and share the group’s
instructions with us.
We will open a group property bank account for rent, service charges and other expenses and to distribute funds back to the invested SIPPs. All members of the group will be individually and jointly responsible for costs associated with the property. If any members of the group cannot pay these costs, your SIPP funds may be used to meet these.
Joint Title Ownership
You do not have to buy 100% of the property using your SIPP. If you are only going to buy part of the property, this will be done through joint title ownership (where one or more people legally own the property). A trust deed is set up which shows our allocated property ownership shares (on behalf of the invested SIPPs) and those of the other invested parties. The trust deed will also include the responsibilities of all invested parties.
We will need the accountant or property manager to update us with the income and spending associated with the property and pay funds to us regularly.
Legacy Property Ownership structures
Nominee Property StructureWe have previously offered an alternative holding structure, called a Nominee Structure.
A Nominee structure referred to a property where Curtis Banks owned a part interest in the property, but the legal title was held solely by one or more third parties (for example, our client or their company). We no longer offer the ability to acquire a property via this structure, however existing clients who hold property with us under a nominee structure are able to buy further or remainder shares via their SIPP with us. Please see our Further or Remaining Property Share Purchase Form for more information about these transaction types.