SIPP 10 - Blandford Dorset
This was purchased as a small retail unit with only 8 members in the pension syndicate, together with a mortgage from Nat West Bank. Completed in April 2006 before the change in pension rules at a price of £240,000 this property is in the market town centre with strong retailers in the vicinity.
The property is leased to the strong tenant The Carphone Warehouse at a rent of £14,000 per annum until 2016.
The mortgage has reduced. More importantly, an investor that put in £50,000 into the syndicate will receive an annual income of £6,363 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 9 years time. That is a rate of 13 % per annum.
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