Case Study: Pooling Multiple SIPPs to Buy a Larger Property

Rachel (56), Tom (51), and Priya (48) are equal partners in a chartered surveying practice based in Leeds. Each has a well-funded SIPP built up over many years of business ownership — Rachel's is worth £310,000, Tom's £285,000, and Priya's £260,000. Together, the three SIPPs hold approximately £855,000.

The practice had been renting a prominent 5,000 sq ft office in a converted Victorian mill for several years. In early 2025, the building's owner put the whole block on the market. The practice's unit was priced at £750,000 — a figure that represented excellent value given the location and the lease terms the partners already knew from the inside. A competing surveyor might pay more.

Individually, none of the three partners had a SIPP large enough to fund the purchase alone — even with a 50% LTV mortgage, a single SIPP would need to contribute £375,000 as a deposit, exceeding each individual fund size. The solution was to combine forces: pool all three SIPPs to acquire the property jointly, with each SIPP holding a proportionate share. This is sometimes called a co-investment or SIPP pooling arrangement.

Disclaimer: This is an illustrative example based on a hypothetical scenario. It does not constitute financial, tax, or legal advice. Always consult a qualified adviser before making pension or property decisions.

When multiple SIPPs purchase a property together, each SIPP holds a defined, proportionate share of the freehold. The ownership percentage can be set in any ratio — it does not need to be equal. In this case, the partners agreed to structure ownership roughly in line with each SIPP's contribution:

• Rachel's SIPP: 36.3% ownership (£272,250 of the £750,000 purchase)
• Tom's SIPP: 33.3% ownership (£249,750 of the purchase)
• Priya's SIPP: 30.4% ownership (£228,000 of the purchase)

The combined deposit across all three SIPPs totalled £375,000 (50% of the purchase price), with the remaining £375,000 funded by a SIPP commercial mortgage. Because three SIPPs were involved, the mortgage was technically three linked loans — each proportionate to the relevant SIPP's ownership share — though in practice this was handled seamlessly by the lender as a single facility.

Each SIPP's share of rental income, mortgage repayment, and eventual capital gain is calculated by reference to its ownership percentage. When the practice pays its rent each month, the payment is allocated across the three SIPP bank accounts in the same proportions. This clarity in ownership is essential for ongoing administration and for HMRC compliance.

Coordinating three separate SIPP trustees, three sets of solicitors, and a single lender on one property transaction requires careful project management. Here is how the transaction was structured:

• Step 1 — Provider alignment: All three partners were with different SIPP providers. Two providers permitted geared commercial property investment; the third did not. We arranged a partial transfer of one SIPP to a compatible specialist provider — only the funds destined for the property deposit needed to be transferred, leaving the balance with the original provider.
• Step 2 — Lender selection: We approached lenders experienced in multi-SIPP transactions. Not all SIPP lenders are comfortable with three-way co-ownership structures — choosing the right lender at the outset saved significant time. The chosen lender issued a single facility structured as three proportionate sub-facilities, one per SIPP.
• Step 3 — Lease agreement: The practice's existing lease was approaching renewal. We worked with the solicitors to ensure a new 10-year full repairing and insuring (FRI) lease was executed simultaneously with the purchase — providing the lender with the rental income covenant they required.
• Step 4 — Title registration: The property was registered at Land Registry with all three SIPPs named as proprietors, with their respective percentage shares noted. A co-ownership deed set out the governance arrangements — what happens if one partner wishes to exit, how decisions about the property are made, and how proceeds are distributed on sale.
• Step 5 — Ongoing administration: Each SIPP provider manages their SIPP's share independently. The rental income is collected centrally by a managing agent and distributed to each SIPP in the correct proportions. Mortgage repayments are debited proportionately from each SIPP's account each month.

The transaction completed in 16 weeks — slightly longer than a single-SIPP purchase due to the coordination required, but well within expectations given the complexity. Use our SIPP LTV Calculator to check whether your own fund is large enough to participate in a co-investment of this kind.

The financial case for the pooled purchase was strong for all three partners. The key numbers at completion were:

• Purchase price: £750,000
• Combined SIPP deposit: £375,000 (50% LTV)
• SIPP mortgage: £375,000 at 5.90% fixed for 5 years (interest-only)
• Annual mortgage interest: £22,125 (split proportionately across three SIPPs)
• Annual rent (FRI lease, open-market value): £49,500 (6.6% gross yield)
• Annual net rental surplus in SIPPs (after mortgage interest): £27,375 — growing tax-free

On a per-SIPP basis, Rachel's 36.3% share generates approximately £9,937 in net annual surplus; Tom's 33.3% share generates £9,116; Priya's 30.4% share generates £8,322. Over 10 years, assuming no rental growth, each SIPP accumulates approximately £90,000–£99,000 in net rental surplus above and beyond the mortgage servicing cost.

Capital appreciation on a £750,000 property at 3% per annum would add approximately £258,000 in value over ten years — with each partner's SIPP share growing proportionately, all free of capital gains tax. The corporation tax saving to the practice on the annual rent of £49,500 is approximately £12,375 per year at 25%.

Pooling SIPPs to buy a larger property is a legitimate and increasingly common strategy, but it requires more planning than a single-SIPP purchase. The lessons from this transaction are worth understanding before you proceed:

• Not all SIPP providers will co-invest. Each provider's scheme rules must explicitly permit co-ownership with other pension schemes. Confirm this before engaging a solicitor or lender — incompatible provider rules are the single most common reason these transactions stall.
• Ownership percentages should reflect actual fund contributions. HMRC and SIPP trustees expect the ownership share to match the financial contribution of each SIPP. Artificially skewing the proportions creates compliance risk. If one partner wants a larger share, their SIPP must contribute more capital.
• A co-ownership deed is essential. This legal document governs what happens if one partner wants to sell their share, dies, or retires and begins drawing their pension. Without it, disputes about the property can leave all three SIPPs in an uncertain position. We recommend this is drafted by specialist pension property solicitors.
• Exit planning matters from day one. Because each SIPP has a different member with a different retirement timeline, the three partners may want to exit the property at different times. The co-ownership deed should address this — typically by giving remaining co-owners a right of first refusal to purchase an exiting partner's share, with independent valuation determining the price.
• Rental income must be market rate regardless of connection. The same HMRC rule applies here as in a single-SIPP purchase: the rent must reflect what an arm's-length tenant would pay. The fact that the tenants are also the SIPP members makes this more important to document clearly, not less.

See also our articles on SIPP property rules and how SIPP mortgages work for the foundational principles underlying this case study.

Two years on from completion, all three partners are satisfied with the outcome. The practice has grown into the space, rental income is tracking the market, and each SIPP is building a growing property asset alongside the partners' other pension investments.

Priya, the youngest at 48, is the least focused on near-term exit. Rachel, at 56, is beginning to think about what retirement looks like — and crucially, the co-ownership deed they signed at the outset means she has a clear mechanism for selling her SIPP's share to Tom and Priya if she wants to crystallise the asset ahead of them. Alternatively, the SIPPs could sell the property collectively and distribute the net proceeds into each member's pension pot for drawdown or annuity purchase.

The key insight from this case study is that the pooling structure does not lock partners into a single, synchronised exit. With the right documentation and planning from the outset, each SIPP member retains meaningful flexibility about when and how they access the value their pension fund has built in the property.

If you are considering a joint SIPP property purchase with business partners, co-directors, or family members, contact our team to discuss how the structure would work in your specific situation.