SSAS and SIPP properties and environmental issues

A key benefit of having a SSAS or a SIPP is the ability to invest in most types of commercial property. However, it is vital that an environmental search is carried out before including a property in a pension scheme.

Some of the key matters for consideration include the risk of flooding, the risk of contaminated land, the risks associated with land that has been mined historically and the risk of radon gas.

"Such risks mean potential liabilities to the pension scheme and these can be significant, especially where there is a risk of harm to people or if there is a pollutant. "

Indeed, if your pension scheme is borrowing to fund the property purchase, the liabilities may affect how lenders review the terms of the mortgage. These liabilities could also affect the future rental or sale of the property which, ultimately, could affect the amount of benefits received from the scheme.

Find out more about the risks involved and some of the steps that can be taken to minimise any liabilities.

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