By Adam Cadle
SIPP property investors are finding it harder and harder to move providers because of the unexpected high costs involved, according to Suffolk Life.
Often SIPP property owners want to move providers in order to reap the benefits of improved terms, costs and services. However advisers are increasingly being hindered by the costs involved in the transferral of their clients’ commercial properties.
Suffolk Life head of marketing Dominic Savage said: “The ongoing servicing of the property and SIPP may be cheaper and more efficient with the new provider but unexpectedly high costs make it difficult to justify a move. This is in spite of all the other involved parties – valuers, solicitors, new SIPP provider – working together to smooth the process and be flexible on costs.”
The company’s head of marketing Greg Kingston stated that with high fees and sometimes opaque transaction fees surrounding property investment “advisers and investors should question fees that appear to be unclear or not reasonable for the work required under TCF outcome 6 if necessary."