We can facilitate borrowing using a variety of investments as the security and with policy loan-backs also as a potential means. This would normally involve capital raising where the premature crystallisation of assets, could lead to tax charges or significant losses. Primarily these arrangements accommodate wealthy clients, who have invested capital for the long term and for whom an unexpected opportunity, or event, has arisen.
The amount able to be borrowed against different types of investment, will vary according to risk.
Examples - Against monies on deposit (cash), pound for pound lending can be achieved since there's no risk to the capital sum. Share portfolios will be assessed for risk, based on the types of stocks held i.e. blue chip shares will attract a higher gearing than would smaller, unlisted companies. Where clients have invested in tax efficient investment vehicles e.g. insurance bonds, the risk will be assessed on both the type of fund in which the capital is invested and the potential costs of crystallising the investment prematurely.
Note – The above apply to UK and overseas based assets and lenders specialising in different areas, in terms of geographic and investment type.
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Focusing on investment strategies for owner occupiers and investors in property held within pension funds. The primary reasons for using such vehicles are for tax advantages. We work in conjunction with other professional advisors, whilst embracing all ongoing regulatory changes.
SSAS and SIPPs can invest in commercial property, but this is restricted to borrowing up to a maximum of 50% of the fund value. The purchase of a commercial property in this way, can be supplemented by borrowing the balance from outside the SSAS or SIPP, subject to the lender's criteria and with the fund being a co-party to the legal title as in any other joint transaction. Alternatively, the borrowing can be joint, as described above, but with ownership vested solely in the name of the Fund.
MMG IS NOT REGULATED TO ADVISE ON PENSIONS AND INVESTMENTS. WE WORK IN CONJUNCTION WITH OTHER PROFESSIONALS WHO ARE.
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PLEASE NOTE THAT MMG CANNOT GIVE ADVICE IN RESPECT OF INVESTMENTS
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