Yorsipp cuts property fees

Yorsipp cuts property fees

Independent Scottish self-invested personal pension (Sipp) provider Yorsipp has cut the cost of in-specie property transfers and new property purchases to attract new clients.

Instead of its standard £2020 (+VAT) fee the provider now charges a total £895 (+ VAT) in the first year for a single Sipp and property, including in specie transfers and new purchases.

For any additional members the fee is £200 (+ VAT) and £300 (+ VAT) per additional property.

The offer will initially be available for six months.

Kirsty Gallagher, director at Yorsipp, said: "Over the last 12 years, Yorsipp has built up a wealth of experience in commercial property investment; it is at the heart of our business and where our focus lies.

"From talking to IFAs, we are aware that many of their clients, having taken out a property Sipp, are now suffering from poor or no provider support, expensive fees or onerous restrictions. However, previously the cost of moving proved prohibitive for many.

"Using our expertise in property purchase and administration to reduce risk and simplify the purchase process, we are now able to offer the incentive of reduced fees in year one after transfer, moving to our usual standard rate card in year two which is in line with our ongoing commitment to being competitive and transparent."

She said the Sipp had already attracted interest from advisers.

Ms Gallagher said: "We have launched the product initially for six months, but given the protracted nature of many property purchases, we hope to extend it for a further six months to enable more IFAs and their clients to take advantage of it."

The bundled property Sipp also allows clients to choose their own solicitor and accept addendums where suitable for valuation purposes to minimise costs. 

The latest offering has been designed to cater for the needs of clients who are dissatisfied with their current provider and want to transfer, the provider said.

Glasgow-based Yorsipp reported a client base of 2,000 in June after seeing a year of growth and product launches.

Ricky Chan, director at IFS Wealth & Pensions, said: "If [the fee] is everything all in, the discounted initial fees appear to be good value.

"But of course, the caveat is to compare the ongoing charges from year two onwards too as these matter most in the long-term."