SIPP provides a Way Inn to investment

During his 22-year career in the Merchant Navy, Peter Waters had always had property interests, so when he decided to settle on dry land for good, he set about building a property investment portfolio.

“In the 90s, property was a great investment because values were increasing all the time and banks were queuing up to lend people money,” comments Peter. “It was my bank manager that suggested I take specialist advice on how to manage my property assets and get maximum value out of them and he introduced me to Taylor Patterson.”

The purchase price for the property was £340,000 and Taylor Patterson worked with Peter to help him understand how he could release money from the SIPP to purchase and improve the property.

New Challenges Having made a tax free profit on the Alma Inn, Peter decided to take early retirement with a lump sum to make improvements on his home and provide monthly pension payments. However, when the recession hit and interest rates plummeted, Peter’s pension income was reduced. At the same time, property prices fell dramatically, creating opportunities for cash investors to buy property.

“Using a combination of SIPP finance and private funds, I was able to complete the purchase, refurbish the restaurant on the ground floor and create nine guest rooms on the first floor, which immediately made the asset more profitable.”

Within a year, the business had become so successful that Peter decided to invest again, this time in an extension to create 10 additional guest rooms adjacent to the building. The SIPP helped fund the extension and the 10 additional rooms now generate a gross income of £700/day when fully occupied.

“They have also ensured that I keep within the strict SIPP rules to protect the status of my SIPP and ensure that I don’t inadvertently alter my tax liability.”

Meanwhile, he’s also widening his property portfolio once more and has purchased a further pub, the Bay Horse in Rough Ley, Lancashire, with his brother-in-law.