Not All SIPPs Are Suitable for Property
The SIPP market divides broadly into two camps: platform SIPPs and full SIPPs. Understanding this distinction is the starting point for provider selection.
Platform SIPPs — offered by investment platforms and banks — are primarily designed for holding mainstream investment assets: funds, shares, ETFs, and bonds. They are typically lower cost, highly automated, and excellent for portfolio investors. However, most do not support direct commercial property ownership, or do so in only a limited way with additional restrictions and costs.
Full SIPPs (sometimes called "bespoke SIPPs") are offered by specialist pension providers. They are designed from the ground up to hold non-standard assets including commercial property. They cost more to administer, but for property investors there is often no viable alternative.
What to Look for in a Property SIPP Provider
When evaluating SIPP providers for commercial property, consider the following:
- Property experience — how many commercial property transactions have they completed? Do they have an in-house property team?
- Acceptable property types — do they accept your intended property type? Some providers are very conservative; others have broader appetites
- Connected party policy — are they comfortable with your company being the tenant, and what documentation do they require?
- Mortgage lender relationships — do they work smoothly with specialist SIPP mortgage lenders? Some providers are preferred by certain lenders
- Fee structure — understand both transaction fees and annual fees; the cheapest provider is rarely the best for property
- Turnaround times — how long do they take to approve properties and process transactions? Slow trustees kill deals
- Regulatory standing — all SIPP providers must be authorised by the FCA; check their status on the Financial Services Register
Key Questions to Ask a SIPP Provider
Before committing to a SIPP provider for a property transaction, get clear answers to these questions:
- Will you approve the specific property type I am considering?
- What is your process and typical timeline for a commercial property purchase?
- Do you accept connected party tenants (my company as tenant)?
- Which mortgage lenders do you work with, and do you have preferred lender relationships?
- What are your total fees for the transaction, and what do they cover?
- What are your annual administration fees for a property-holding SIPP?
- What ongoing documentation do you require (rent review evidence, valuations, etc.)?
Our team works with multiple SIPP providers and can often accelerate the provider selection and approval process. Understanding the cost structure in advance helps you compare providers on a like-for-like basis.
Our Approach to Provider Selection
We do not recommend a single SIPP provider as the best option for all clients. The right provider depends on the specific property type, transaction size, whether borrowing is required, and the member's wider pension position.
What we do is match clients to providers with genuine expertise and appetite for their specific transaction — avoiding the scenario where a provider raises unexpected objections late in the process, causing delays and additional costs. This matching process is a core part of the service we provide alongside SIPP mortgage brokering. See our step-by-step guide to the SIPP property purchase process to understand how provider selection fits into the overall timeline.