Nicholas and Co. Surveyors Deliver Expert SIPP Valuation Services For Retirement Planning

What is a SIPP Valuation?

Self-Invested Personal Pensions (SIPPs) involve a RICS Red Book survey of all commercial properties included in a SIPP. This can be conducted either before or after an offer is made, helping you and your lender determine if the investment is optimal.

SIPPS have become an increasingly popular option for individuals and directors seeking to control their retirement savings. Initially designed for the wealthy, policy changes since 2015 have made SIPPs accessible to people across various income levels, thanks to pension freedoms. These pensions provide the flexibility to manage commercial investments personally, allowing for a diversified and potentially lucrative retirement portfolio.

Understanding SIPPs and Their Investment Options

SIPPs are essentially do-it-yourself pensions, allowing individuals to decide where their money goes and how it grows. This control extends to various investment options, including commercial property, stocks and shares, government bonds, unit trusts, and exchange-traded funds (ETFs). SIPPs can also encompass investments in property and land, making them a versatile choice for those who prefer to keep their pension investments in one pot.

Self-Invested Personal Pensions (SIPPs) offer a unique opportunity to invest directly in UK commercial property. This option can be particularly beneficial for self-employed individuals looking to purchase their business premises through their SIPP, though the property does not need to be related to their own business.

Your SIPP can borrow up to 50% of the value of your Prdential Flexible Retirement Plan, minus any existing borrowings, to help finance the property purchase. The lender must be a bank or building society.

Prudential SIPP planholders can also pool their funds to jointly invest in commercial property. Additionally, you can part-buy a commercial property with other purchasers who are not SIPP investors.

Types of Property Your SIPP Can Buy

Your SIPP can acquire freehold, leasehold, or commonhold commercial property in the UK. This encompasses any property used primarily for commercial purposes. When buying land adjacent to land owned by you or someone connected to you, a valuation is required to ensure a fair market value is paid.

Valuations are necessary in all cases. Below are some types of commercial properties that can be held within a full asset SIPP:

• Agricultural land
• Garages
• Gymnasiums
• Hotels
• Industrial/business units and warehouses
• Land for commercial development
• Marine berths
• Nursing homes
• Offices
• Public houses
• Shops

Commercial property with a residential element may be accepted if:

1. The residential element is occupied by an employee of the tenant as a condition of their employment, provided they are not connected to the employer, the pension scheme member, or anyone connected with the pension scheme member (e.g., a caretaker’s flat), or
2. It is occupied by a person not connected with the pension scheme member in relation to the commercial element (e.g., a flat above a shop leased with the shop and occupied by the person running the shop).

The Importance of SIPP Valuations

Accurate valuations are crucial for those investing in SIPPs, especially in properties. Nicholas & Co. Surveyors, based in the UK, specialise in providing comprehensive valuation services for SIPP clients. Our team of RICS-accredited surveyors ensures that every valuation meets the highest industry standards, aiding in effective pension planning and compliance with pension regulations.

When a SIPP is needed?

Property Purchase

If you plan to purchase commercial property within your SIPP, an RICS valuation is required to determine the property’s market value. This valuation ensures that the property is acquired at a fair price and complies with SIPP regulations.

Annual Reporting

SIPPs are required to provide annual valuations of their assets. An RICS valuation is essential to determine the property's current market value within the SIPP for reporting and compliance purposes.

Transfer of Assets

When transferring assets into or out of your SIPP, such as transferring property from your personal ownership into your pension fund, an RICS valuation is necessary to establish the property’s value at the time of the transfer.

Pension Fund Performance

Regular RICS valuations can help you assess the performance of your SIPP’s property assets. This information is crucial for making informed investment decisions within your pension fund.

Estate Planning

RICS valuations can play a role in estate planning, especially if you intend to pass on your SIPP assets to beneficiaries. An accurate valuation is essential for tax and inheritance planning purposes.

Our SIPP Valuation Process

When you choose Nicholas and Co. Surveyors for your SIPP valuations, you can expect a thorough process:

• Initial Consultation: We start with a detailed consultation to understand your SIPP and valuation objectives. This allows us to tailor our approach to the unique characteristics of your investments.
• Property Inspection: Our surveyors conduct comprehensive inspections of the properties within your SIPP, assessing factors like condition, location, and size to gather accurate data.
• Market Research and Analysis: We utilise reliable data sources and conduct extensive market research to determine the current market value of your SIPP properties. This includes analysing location, property type, market demand, and recent trends.
• Compliance with SIPP Regulations: Our valuations adhere to the standards set by SIPP providers and pension administrators, ensuring compliance with all relevant regulations.
• Comprehensive Valuation Report: We prepare a detailed valuation report based on our findings. This document includes our professional opinion on the value of your SIPP properties, supported by market data and comparable sales.

Why Choose Nicholas and Co Surveyors?

Choosing Nicholas & Co. Surveyors for your SIPP valuations means benefiting from our expertise and professionalism. Our RICS accreditation ensures adherence to the highest standards, while our extensive experience in SIPP valuations allows us to provide reliable and accurate assessments.

We tailor our approach to each SIPP, recognising that every investment is unique. Our evaluations provide valuable insights for optimising your pension portfolio and making informed investment decisions.

Whether you are considering adding commercial properties to your SIPP or need an updated valuation for existing investments, Nicholas & Co. Surveyors are here to help. Contact us today to discuss your valuation requirements and benefit from our professional expertise.

If you’re interested in how Nicholas & Co. Surveyors can help you, please contact us today.

Telephone: +44 203 633 5370 / +44 1992 939 201

E-Mail: enquiry@nicholassurveyors.com