Tim is a successful Wiltshire property developer, who wanted to turn what had been a part-time interest into a formal business. Hartsfield Financial Services were recommended to Tim through the Property Investors’ Network, which is a network of support and advice groups for property investors.
As well as wanting to set up a company, Tim wanted to source investment capital to extend his property portfolio.
We looked at Tim and Vikki’s existing pensions arrangements. Tim had a SIPP – a self-invested personal pension. Once Matcham Property Investments had been set up, we were able to close the SIPP and use the funds to set up a SSAS – a small self-administered scheme, only available to owners or directors of limited companies.
Once the funds were in a SSAS pension, we were able to then look into the pension making a loan to Matcham Property Investments. The benefit of a loan from a SSAS pension is the interest is then paid back into the pension, as a commercial rate.
We had to use security for the loan, which we were able to do by using the value of the company’s intellectual property – IP. And to demonstrate that the IP was robust enough to stand as security for the loan, we helped Tim devise a strong business plan, showing the projected value of the IP.
Tim and Vikki were able to set up a company – Matcham Property Investments – to formalise their property portfolio. They sourced investment through their SSAS pension, which has the advantage of interest payments going back into the pension rather than to a third party lender. By trademarking the company, writing a strong business plan and harnessing the value of the IP, we were able to secure the necessary funding. And, of course, Matcham Property Investment’s portfolio has grown!
Tim said: “Hartsfield really helped with my business plan and held my hand through the process of being able to release the funds necessary to achieve what I wanted to achieve.”
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Categorised in: IFAs
This post was written by Melanie Dolphin