SSAS can purchase commercial property. It cannot purchase residential property. However, the question we often get asked is, can a SSAS buy commercial property and convert to residential? Let’s take a look.
SSAS Pension Commercial Property Purchase
A SSAS can buy commercial property. In these instances, usually clients are expecting to buy commercial property with a view to obtaining planning permission and then hoping to convert to residential houses or flats.
Can a SSAS Pension Purchase Commercial and Convert to Residential Property?
No, SSAS is not allowed to come into ownership of residential property at any stage, so if you are looking to convert to residential, you will need to do it either personally or in another vehicle like a Limited Company or SPV.
Once that has been done, the site has ceased to become residential. At that point, and only that point, the SSAS can look to acquire the commercial site.
Browse our case studies for examples.
SSAS Can Help Towards the Costs of Obtaining Planning Permission
While SSAS cannot own residential property, it can help pay for planning permission, which many don’t realise. We always suggest that once planning permission has been obtained, the site is sold to the developer so that there is no risk of the SSAS ever coming into ownership of the residential property. That is the safest way to do things.
Speak to Our Team About Converting Property to Residential
If you are considering buying commercial property to convert to residential, book a call to speak with a member of our team. We’re available to answer any questions you may have.
For more information about SSAS and property ownership, visit our SSAS Video Hub.
