PensionsAug 10 2017

Momentum details property Sipp fees

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Momentum details property Sipp fees

Momentum Pensions is addressing investor and advisers concerns about complex charges when joint owners are buying commercial properties for their self-invested personal pension.

The provider launched detailed fee schedules for its Momentum Property Sipp, following an overall simplification of its Sipp fees structure in April.

The Sipp allows commercial property investment with fee structures that have charges stated upfront for single properties owned by one Sipp member, and for multiple properties jointly owned by two or more Sipp members.

John McCreadie, UK head of sales at Momentum Pensions, said: “Advisers continue to highlight the need for clarity over charges in the Sipp market and our research has shown that over two thirds have been surprised by unexpected charges since the start of the year.

“It is reasonably straightforward where one property is being bought by one Sipp, but where there are multiple owners or multiple properties being considered, the complexities and confusion over costs can spiral enormously in the market.”

Momentum’s new fee schedule allows clients and advisers to estimate charges and receive a bespoke quote before committing to transactions. The provider also plans to add a calculator to its website to provide further support.

Gem Durham, independent financial adviser at Obsidian, welcomed more transparency but said Momentum's Property Sipp fees are not unique in the market.

She said: “There are some other Sipp providers also offering clear and fair fees for joint property ownership. Hopefully in the future all Sipp providers will provide as clear and concise information regarding their fees."

maria.espadinha@ft.com