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Proceeds from inheritance question?

asked by Kathy Meadows posted 2 Years ago at 9:40
Hi there i recently inherited a substantial amount of money and am looking to invest in property. Firstly however, i wish to do my research so need to hold the cash with the maximum upside but be able to withdraw at any point in case i see the right property. I'm looking to buy investment properties perhaps commercial as well. I don't have a sipp but is it an idea to start one up in order for me to enable to buy commercial property.

Secondly my income is sporadic and would be looking for mortgages for each of the properties, the mortgage will be for C.40% of the properties value with me paying cash for the rest, is it best to go to a mortgage broker or bank?

Many Thanks
1-1 of 1 Answers
Martin Gorvett answered 2 Years ago at 15:38, last modified: 2 Years ago at 14:38
For cash deposits you can compare interest rates using www.interest-rates.org.uk. This allows you to view both interest rates and the associated caveats e.g. term, access etc.

I would also recommend using a mortgage broker, or even better an IFA for appropriate mortgage advice. At the end of the day, just make sure they are independent.

Using the funds to invest through a SIPP would be useful from a tax position but a SIPP will restrict you to pure commercial property only.

Also, your contributions to establish the SIPP will be limited to £ 50,000 per tax year, although you can make up any shortfall in this limit over the past 3 years, the tax relief will be limited to your relevant UK earnings.

Dependent upon your age and financial circumstances, starting a pension now may well be a wise move but it won't be of such immediate benefit to you.

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