Small Self-Administered Scheme
Borrowing to Invest
The trustees may borrow money from lenders to enable them to purchase particular assets, or to otherwise benefit the SSAS in the best interests of the members. This could include borrowing to provide a member's benefit that has become payable. The maximum the SSAS can borrow is 50% of its net fund value at the date of the loan.
The SSAS may also borrow to lend to the principal employer provided it charges the employer a higher rate of interest.
We do not stipulate or limit the range of potential lenders. However, Rowanmoor Pensions has agreed a streamlined lending facility with The Royal Bank of Scotland plc specifically for the purchase of commercial property. The streamlined administration system, which includes pre-agreed legal documentation, speeds up the process. If borrowing is to be with any other party, all the documentation needs to be individually agreed by Rowanmoor Trustees Limited before the borrowing may proceed.
Rowanmoor Trustees Limited must be party to the loan documentation.
This information relates to the Rowanmoor Pensions SSAS.