Borrowing for Property Purchase

A SSAS or SIPP can (post 06/04/06) borrow up to 50% of its net assets to purchase a property.
Therefore if a SSAS/SIPP which has total assets of £100,000 can borrow a further £50,000 - hence could buy property worth £150,000.
The 50% limit applies to the total borrowing, therefore any existing borrowing needs to be taken into account. So if the SSAS/SIPP had total assets of £200,000, with outstanding borrowings of £50,000, the maximum amount which can be borrowed is £200,000 less £50,000 x 50% = £75,000 i.e. further borrowing allowed of £25,000.

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