Buy 2 Let Advice

[CaptainSlow]

I find myself in a position where I can increase my leverage and I want to diversify my asset portfolio.
I'm considering purchasing a flat to let out in the local town. I would plan to hold on to the property and make it part of my pension fund, with this in mind can I use a tax efficient vehicle such as a SIPP or any other method for this?

Any help appreciated.

[curley]

You cannot hold residential propert in a SIPP

[Steffan]

So far as I am aware it is very difficult to utilise pension arrangements on residential property. You might be significantly better with the tax position if you used semi commercial property which might qualify as a pensionable investment.

I would be extremely cautious with any buy to let and pay particular attention to an adequate valuation and the specifics of the service charge, tenure, lease, freeholder and all the details which can easily give rise to real nasties.

I suggest you consult an IFA with real product knowledge in this area but exercise great caution.