Funding my company borrowing with my own pension? (SSAS)
Discussion
Hi
I am looking for some advice from the knowledgeable people on here, I have run a few searches and there are some SSAS topics but nothing recent and the questions were different.
I am in the market for some borrowing and was approached today by a company which seemed to be offering to lend me my own pension back to my Ltd company. I had never heard of it and it seems rather complicated but on doing further research this evening it actually seems to be a thing - SSAS - this is new to me so would appreciate some feedback...........
In short, my ltd company recently purchased a commercial property. We have planning approved to convert to residential and development has started. I will shortly need funding to complete the redevelopment (about £200k). Building is freehold, owned by the company, no mortgage, wife and I only directors.
I have a relationship with a high street bank with some commercial loans on other assets, they are able to offer me a 'development loan' on fairly sensible terms (5.5% pa over base) but are so slow to actually do anything. I have several offers of funding from capital investment firms and could have funds very quickly but their rates seem excessive (1%pm plus fees).
I have started looking properly at borrowing now as I am going to need the funds in a couple of months or so.
We both have full time jobs paying into pension pots and various other pension pots knocking about from other employment and where current employers have changed course etc. Total probably about £250 to £300k so not massive.
It seems too good to be true that we could potentially move money from the older funds and lend it to our own company, essentially being the borrower and the lender and potentially seeing the 10% interest passed to our pension fund.
I understand you can only lend 50 to 60% of the total 'pot', what happens to the remainder?
What happens once I have finished the redevelopment and paid back the money, can I put the funds back into a traditional pension?
Can I withdraw part of my current pension pot without it closing as I would then loose contributions from my employer?
Any thoughts or advice appreciated.
I am looking for some advice from the knowledgeable people on here, I have run a few searches and there are some SSAS topics but nothing recent and the questions were different.
I am in the market for some borrowing and was approached today by a company which seemed to be offering to lend me my own pension back to my Ltd company. I had never heard of it and it seems rather complicated but on doing further research this evening it actually seems to be a thing - SSAS - this is new to me so would appreciate some feedback...........
In short, my ltd company recently purchased a commercial property. We have planning approved to convert to residential and development has started. I will shortly need funding to complete the redevelopment (about £200k). Building is freehold, owned by the company, no mortgage, wife and I only directors.
I have a relationship with a high street bank with some commercial loans on other assets, they are able to offer me a 'development loan' on fairly sensible terms (5.5% pa over base) but are so slow to actually do anything. I have several offers of funding from capital investment firms and could have funds very quickly but their rates seem excessive (1%pm plus fees).
I have started looking properly at borrowing now as I am going to need the funds in a couple of months or so.
We both have full time jobs paying into pension pots and various other pension pots knocking about from other employment and where current employers have changed course etc. Total probably about £250 to £300k so not massive.
It seems too good to be true that we could potentially move money from the older funds and lend it to our own company, essentially being the borrower and the lender and potentially seeing the 10% interest passed to our pension fund.
I understand you can only lend 50 to 60% of the total 'pot', what happens to the remainder?
What happens once I have finished the redevelopment and paid back the money, can I put the funds back into a traditional pension?
Can I withdraw part of my current pension pot without it closing as I would then loose contributions from my employer?
Any thoughts or advice appreciated.
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