SIPP and commercial property with flood risk
Discussion
Not sure if this or Business is best place to ask.
Has anyone any experience of buying a flood risk property using a SIPP? My actual plan would be to knock building down and build something flood resistant. It sounds like the SIPP might not want to buy something that could be at risk though. The SIPP people have suggested we might need an Environmental Screening Report (ESR) completed for it.
In my case I'm almost looking at the land itself (which is at risk of some flooding every 10 years or so). I'm happy with risk as it would fit my purpose.
I'm finding out more but wonder if something others might have experience of?
Has anyone any experience of buying a flood risk property using a SIPP? My actual plan would be to knock building down and build something flood resistant. It sounds like the SIPP might not want to buy something that could be at risk though. The SIPP people have suggested we might need an Environmental Screening Report (ESR) completed for it.
In my case I'm almost looking at the land itself (which is at risk of some flooding every 10 years or so). I'm happy with risk as it would fit my purpose.
I'm finding out more but wonder if something others might have experience of?
There are SIPPs and then there are SIPPs.
I had one years ago where trying to get a commercial premises inside one was very problematic, it was a garden centre and the issue was down to the amount of glass and hence the one size fits all insurance that the master trusts tend to use. It may well be possible, but you'll meed to pay someone to do the digging to find one that will accept what you're trying to do. Even then there may be no guarantee. of success.
I had one years ago where trying to get a commercial premises inside one was very problematic, it was a garden centre and the issue was down to the amount of glass and hence the one size fits all insurance that the master trusts tend to use. It may well be possible, but you'll meed to pay someone to do the digging to find one that will accept what you're trying to do. Even then there may be no guarantee. of success.
orbit123 said:
I'm thinking flood risk affects value of building currently on it - but shouldn't really affect my proposed plan.
Understood. Is there an option to buy, do what you want to do, and then transfer it into the SIPP later?
If flood risk is what puts them off now, but your new building eliminates that, then might they look at it more favourably down the line?
I think that is a decent idea, thanks. I have personal funds I could use but would work better tax-wise within SIPP - so feel property worth a lot less to me if I need to do it personally as its going to cost me more. Vendor hanging out for more. It might be a matter of waiting that out though.
I get impression getting a commercial mortgage for it also difficult for similar reasons so really down to only buyers with cash who are also prepared to build something flood resistant.
I get impression getting a commercial mortgage for it also difficult for similar reasons so really down to only buyers with cash who are also prepared to build something flood resistant.
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