Unlocking Value from a SSAS to Fund a Residential Purchase
The Client Background
A broker approached us with clients seeking to capital raise against an unencumbered freehold industrial property held within their pension structure (SSAS).
While the facility itself was unregulated, the intended use of funds introduced a regulated element, as the capital was being partially used to support the purchase of a new main residential property. This required careful structuring to ensure the lending purpose and exit strategy aligned appropriately with both regulatory considerations and the client’s wider residential objectives.
The “Positive” Solution
Our commercial team reviewed lender appetite and identified InterBay as the most suitable route for this case, given their expertise in complex ownership structures and SSAS-backed lending.
InterBay were comfortable proceeding with the SSAS arrangement and accepted the security, which comprised a freehold property split into six self-contained, lettable units under a single title. The asset generated an annual rental income of £87,000, delivering strong rental coverage and ensuring affordability was comfortably met without reliance on the client’s personal income.
The Loan
Product: Commercial Investment
Lender: InterBay
Loan Amount: £445,000
Loan Purpose: Part finance for a residential property & regulated purpose
LTV: 32%
Commission: £3,337.50
Positive Lending provided full advisory support throughout the process, ensuring the structure aligned with both lender requirements and client objectives.
The “Positive” Outcome
The client successfully released £445,000 in capital, enabling them to progress with their onward residential purchase without delay or disruption to the transaction.
Despite the layered complexity of the case, including SSAS pension ownership, a mixed-use of funds, and multi-unit commercial security, the application was structured and delivered efficiently within lender appetite.
Strong underlying rental income supported a smooth underwriting process, and the tailored structure allowed the client to unlock the value of an otherwise unencumbered asset, ensuring their wider residential objectives were achieved.
Why Choose Positive?
Complex cases like this demand careful structuring and strong lender relationships. By understanding both the commercial and regulated elements, Positive was able to deliver a solution that worked for both the client and the broker, ensuring the case progressed smoothly from enquiry to completion.