How to fund a deposit
Investment with benefits.
Listed below are different ways of funding the property deposit. After Selecting the resort and property type:
A £1,000 (non refundable) is required to reserve the property. A contract is issued with 45 days to sign and return along with a 30% deposit (minus the reservation fee)
- Cash from personal funds.
This could be a personal purchase and therefore would allow you 30 days personal use of the property. - Secured or Unsecured Loan
As above however the loan amount can be covered by the developer. If you take out a loan to create the deposit you would have the option to have the interest only paid by the developer up to the completion point. The money is paid into your bank account 3 working days before the loan payment is due out. We have been working this system for over 18 months without any issues. - Paid Up Pensions
You are able to transfer pension funds and establish a SIPP. The SIPP is then able to make a deposit for the selected property and attract the capital growth and income that this investment offers.
Should there not be enough in the transfer to make the 30% deposit you can make a contribution to the SIPP and attract the usual tax benefits.
If the client raises the additional contribution through a loan this would not be covered by the developer as it is the SIPP that has the contract and not the individual. - Existing SIPPS
You can invest money from an existing SIPP in to this project assuming the Trustee allows it. Otherwise a new or second SIPP would need to be established. Our Pension Trustees can take over existing SIPPS at reduced fees.
The Process
If you are is interested in this type of property we would firstly establish how you would like to make the deposit after informing you of the various options.
Should it be through Pension funding we would refer them to our IFA. A valuation of existing schemes can be obtained and a discussion as to the best way forward.
If a new SIPP is required this is set up by the IFA and funds transferred or injected. We then engage Hornbuckle & Mitchell to act as Trustees who will then make the deposit payment to the developer.
The SIPP now owns a contract to purchase a Caribbean property.
If there is an existing SIPP it would be up to the existing Trustee to approve the development and make the relevant deposit.
We work alongside several leading UK SIPP providers who are experienced with the various developments offered by MAPgpi.
MAP GPI are not authorized to offer Pension advice.
