SIPP & SSAS
Development Finance
Fund commercial property development through your pension — conversions, refurbishments, change of use, and ground-up projects. Staged drawdowns, GDV-based lending, and specialist lender access.
Staged Drawdowns
Funds released in tranches as development milestones are met, monitored by an independent quantity surveyor.
GDV-Based Lending
Borrowing assessed against Gross Development Value, allowing larger facilities than standard LTV-based lending.
Up to 50% of Fund
HMRC borrowing limits still apply — your SIPP or SSAS can borrow up to 50% of net assets for development.
Exit to Term Debt
On completion, refinance to a longer-term SIPP commercial mortgage at lower rates. We arrange both facilities.
How SIPP & SSAS Development Finance Works
Development finance within a SIPP or SSAS allows your pension fund to undertake commercial property development projects. This could range from converting an office to a different commercial use, refurbishing an industrial unit to increase rental value, or ground-up development of commercial premises on land already held by the pension.
Unlike standard SIPP mortgages, development finance is released in stages as work progresses. A monitoring surveyor inspects the project at each stage and certifies completion before the next tranche is drawn. This protects both the pension fund and the lender. The SIPP or SSAS must still comply with HMRC borrowing limits — total borrowing cannot exceed 50% of net assets.
Development projects within a pension benefit from the same tax advantages as standard SIPP property — no CGT on the uplift in value, tax-free rental income once let, and potential IHT benefits. The key is structuring the exit: most development facilities refinance to a SIPP term mortgage on completion, with the enhanced property value supporting the longer-term lending.
Eligibility Criteria
- Development must result in commercial property (no residential end-use)
- SIPP/SSAS must have sufficient funds to cover at least 50% of total project costs
- Full planning permission or permitted development rights must be in place
- Independent quantity surveyor required for staged drawdown monitoring
- Clear exit strategy — typically refinance to SIPP term mortgage on completion
- SIPP provider must approve the development as a permitted investment
Important: This content is for information purposes only and does not constitute financial, tax, or legal advice. SIPP and SSAS property investments carry risk — the value of pension investments can go down as well as up. Always consult a qualified financial adviser before making pension investment decisions.
Planning a SIPP Property Development?
Our specialist team can assess your development project and source appropriate pension-backed development finance. Get in touch for an initial discussion.
Discuss Your ProjectWritten by Matt Lenzie
Founder, SIPP Property Finance
Board advisor to a SIPP business with over £2.9bn assets under advisory. Former banker and corporate finance partner with experience raising over £300m of equity and debt. Matt specialises in structuring SIPP and SSAS commercial property transactions for UK business owners and investors.
Other SIPP Finance Products
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