Maximum purchase price with funds available
We have designed this calculator to give you an idea of:
- The feasibility of buying a property with a SIPP and any other available funds, and
- How much the property would cost in total, taking into account fees and taxes
We have made certain assumptions about the fees and expenses the purchase would generate. As such all we are giving is an indication and we are unable to guarantee any of the figures quoted; they could be more or less depending on the structure and complexity of the acquisition. Nonetheless we hope this will serve as a useful guide.
Please note that this does not construe financial advice on the part of Liberty SIPP Limited and we can not comment on the suitability of property as part of your SIPP’s investment portfolio. Prior to purchase we will however advise you whether the property meets HMRC requirements as a SIPP investment, and will work with you to put it in place.
This calculator has been developed to give an insight into cost implications of a commercial property purchase and should not form a cornerstone of any structured financial planning. We strongly recommend that you speak to your financial advisor when considering making any investment with your SIPP funds.
Results
| Number of Liberty SIPP members buying Property | |||
|---|---|---|---|
| Number of Non-Liberty SIPP members involved | |||
| Is the Property subject to VAT? | |||
| How much will your Financial Adviser charge? | |||
| How many Liberty SIPP members intend to borrow? | |||
| Term of loan if you intend to borrow |
Funds to be used for purchase
| Tax relief | Total | ||
|---|---|---|---|
| Non-protected rights | |||
| Lump sum contributions by member | |||
| In-specie transfer of personal assets | |||
| Lump sum contributions by employer | |||
| Amount on which 50% loan based | |||
| Maximum loan | |||
| Total funds: any in specie transfers are excluded as they only generate tax relief | |||
Maximum Property Price & Costs
| Maximum Purchase Price | |||||
|---|---|---|---|---|---|
| VAT (if it applies) | |||||
| Fees and expenses (see breakdown below) | |||||
| Total costs | |||||
Fees and expenses, including VAT where it applies
| Stamp duty | |||
|---|---|---|---|
| Land Registry fee | |||
| Searches | |||
| Solicitor's fee | |||
| Survey fee | |||
| Loan arrangement fee | |||
| Property insurance | |||
| Environmental Report |
Liberty SIPP fees, including VAT
| Set-up | Annual | ||
|---|---|---|---|
| Property fee including one Liberty SIPP member | |||
| Additional Liberty SIPP members | |||
| Non Liberty SIPP members | |||
| Borrowing | |||
| VAT registration | |||
| Total property fees | |||
| Financial Adviser fee, assuming no VAT | |||
| TOTAL FEES AND EXPENSES |
Rent and loan repayments
| Amount of loan | |||
|---|---|---|---|
| Term | |||
| Base rate/amount over/total | 0.50% | % | % |
| Repayments monthly/p.a. | |||
| Rent per annum, assumed 10% of purchase price | |||
| Rent needed to cover 120% of loan repayments, as probably required by lender |
Please note
For illustration purposes we've not attempted to quote costs per member, one reason being that they won't necessarily be equal nor, for instance, will loan amounts always be in proportion to each member's share of the purchase. We can go into more detail about this later.