SIPP administrator Stadia Trustees Ltd has launched a bespoke SIPP with a ‘cost effective' charging structure for commercial property purchase.
The charges on The Property SIPP are £550 +VAT for the SIPP and £250 +VAT per property.
Tony Hales, chairman at Stadia Trustees [pictured], said: "The Property SIPP is a new addition to our SIPP offering which has been developed to fulfil investors' need for a cost-effective and flexible vehicle for property investment."
There also could be a supplemental fee of £100 + VAT for VAT registration. If the SIPP is in drawdown, fees of £150 + VAT can incur. Third party fees, such as solicitors' fees also apply.
Hales added: "We wanted a product that took a lot of complexity out of property. Some people are charging a lot of money for property SIPPs. We've analysed it and we feel we can provide a very low cost mainstream product."
He also said the company would not impose high exit charges on clients who wanted to move SIPP.
"We don't believe there should be any hurdles if a company wants to move. A lot of people put in [high exit fees]. We don't believe that's treating customers fairly. We certainly wouldn't put in place charges if people want to leave.
"We want to keep the business on service and we don't want to lock anybody in. I think it's wrong to have charges preventing people to move. Ideally the target market for us is perhaps getting some of the business from other providers who charge high fees. They may find even with the exit charges [our offering] is cheaper than what they may be paying their existing property SIPP provider."
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