Investor concern about complex charges when joint owners are buying commercial properties for their SIPPs is being addressed by Momentum Pensions, the pension specialist and SIPP provider.
It has launched detailed fee schedules for its Momentum Property SIPP providing complete transparency for customers looking for complex solutions in response to growing concern from advisers and clients.
The Momentum Property SIPP allows commercial property investment with fee structures that have charges clearly stated upfront for single properties owned by one SIPP member and for Multiple Properties jointly owned by two or more SIPP members.
Advisers warn that meaningful comparisons cannot be made for clients due to complex fee structures, with no commonality between providers.
John McCreadie, Head of Sales (UK), Momentum Pensions, said:
“Advisers continue to highlight the need for clarity over charges in the SIPPs market and our research has shown that over two thirds have been surprised by unexpected charges since the start of the year.
“There is a particular lack of clarity in the property purchase market which whilst being admittedly more complex, also arguably has the least clearly defined fees and particularly where there are multiple owners.
“It is reasonably straightforward where one property is being bought by one SIPP but where there are multiple owners or multiple properties being considered the complexities and confusion over costs can spiral enormously in the market.
“Out rationalised approach minimises arising or time-based costs and is clear on what services are being paid for and when and we will be adding a calculator that helps estimate and illustrate potential costs in these scenarios”