Mortgage — Using a SSAS to Support a Commercial Property Purchase

Lisa needed larger office space for her expanding social media business. By transferring her pension into a SSAS and making a company contribution, she was able to purchase a £395,000 property using pension borrowing.

Mortgage — Using a SSAS to Support a Commercial Property Purchase

Lisa’s business had outgrown its rented office space. With £200,000 in her A J Bell SIPP and £150,000 cash reserves in the business, her adviser Lucy showed her how a SSAS could fund the majority of a new office purchase.

Lisa identified a property valued at £395,000 but was unsure whether she could stretch to it. After reviewing her assets, Lucy recommended establishing a SSAS.

The strategy allowed Lisa to:

• Transfer £200,000 from her A J Bell pension
• Make an £80,000 company contribution
• Build a SSAS fund of £280,000
• Borrow up to 50% of the fund value (£140,000)
• Purchase the new office property entirely through the SSAS

The SSAS then leased the office back to Lisa’s business, creating tax-deductible rental payments while growing her pension in a tax-free environment. Lisa was delighted to secure the property and strengthen her retirement planning.