GPS looks to find products that naturally provide clients with a choice of how they make the property / land purchase and also advise clients to take professional and regulated advice on the most suitable payment method dependant on their personal circumstances.

This advice should be provided by an Independent Financial Advisor (IFA).  To ensure that clients do receive support in their decision making process GPS recommend clients either contact their own IFA or they can contact one of the IFA companies GPS has an affiliation with, for further information please contact GPS via the contact page.

Options for payment

The current portfolio offers clients a number of key methods of purchase: cash; equity release or a self invested pension plan (SIPP);

Cash:

Clients with ‘liquid’ (accessible) capital reserves, typically savings, can purchase using their capital.  A simple process of transferring funds, via the bank or a cheque on signature of  contract to either the developer or the developers escrow account.  On transfer/payment of funds all clients are required to comply with money laundering regulations and provide certified copies of their passport and a utility bill.

Equity Release:

This process requires specialist advice from a regulated body either an IFA or the clients Bank or Building Society.  Once equity has been released the client is effectively a cash purchaser and will follow the process as outlined above.  It should be noted that the set-up and ongoing costs of an Equity Release usually become the Clients responsibility, however there are instances where a developer will assist clients with the fees.

Self Invested Pension Plan (SIPP):

A self invested pension plan is a form of pension plan where the client chooses where the funds are invested.  Many SIPP providers are approving property, land purchase and alternative investment opportunities. This means that Clients can use part of their private pension to make acquisitions.  Clients looking to the SIPP route for a property or land purchase must consult a regulated advisor, who will assess their current pension arrangements and advise whether a SIPP is appropriate.

Clients who receive independent confirmation that a SIPP is an appropriate avenue will liaise with the IFA to achieve the following actions.

  • Establish current personal pension and protect right funds
  • Complete application process with an appropriate SIPP provider
  • SIPP provider will request the transfer of existing funds to the SIPP account
  • Purchase contract created in name of SIPP, signed by Client and SIPP
  • SIPP funds transferred in line with the contract instruction
  • Annual yields & rentals paid directly back into SIPP