# Mortgage Backed Pension



## Wicklow Gael (26 Oct 2011)

I am trying to sell my house at the moment but no joy so far.

Is it possible for the limited company through which myself and my wife are directors to purchase our house. The house would then enter into a mortgage backed pension.

I personally would receive the income from the sale of the house.

I will not continue to live in the house.

The current house would remain in the mortgage backed pension for a period of 15 years as normal.

Clear as mud???


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## ClubMan (26 Oct 2011)

I seem to recall a key post about why buying a residential property through company was generally a bad idea but I can't find it a the moment... There were (are?) also a few posts about pension mortgages in case you can find them and they are of any use.


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## Wicklow Gael (27 Oct 2011)

Thanks Clubman.

Yeah, there are some posts about it alright. However my query might be slightly different in that I want the company I own to purchase my current residence rather than an investment property that I currently have nothing to do with?


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## ClubMan (27 Oct 2011)

I'm sure that there was a (key?) post about the pros and (mostly as far as I recall) cons of having a company buy your _PPR_.


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## LDFerguson (30 Oct 2011)

Wicklow Gael - I think you may be getting a few different concepts confused. Or maybe I'm the one that's confused. 

Anyway, there's a pension-backed mortgage. This is where someone marries an interest-only loan to a pension plan, with the intention that the lump sum element of the pension plan at retirement will pay off the capital of the loan. That doesn't sound like what you're proposing. 

Alternatively, a self-directed or self-administered pension fund can buy a property as an investment. But you don't qualify for this for several reasons, the principal one being that your pension fund cannot buy property from yourself or anyone connected to you - Revenue rules. 

If your company has cash it can buy your property from you, but I'm not sure what the benefit to you would be, and that has nothing to do with a pension. 

Liam D. Ferguson


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## Wicklow Gael (4 Nov 2011)

Liam

"But you don't qualify for this for several reasons, the principal one being that your pension fund cannot buy property from yourself or anyone connected to you - Revenue rules. "

Thats the bit I was trying to find out.

Thanks


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