A-day will take the 'glam' out of commercial property says pension expert

Mike Brown, head of pensions and retirement at Abbey for Intermediaries, says investing in commercial property is currently a popular choice for SIPP investors. However, pending pensions legislation could change this considerably, he says. At present, SIPP trustees are allowed to borrow up to 75% of the acquisition costs of the property, forcing the individual’s pension fund to provide just 25% of the value. After April 2006, this borrowing limit will, however, be reduced to 50% of the value of the individual’s pension fund. Brown says: “Commercial property has been a very popul...