• the vendor must be at arm's length from the scheme and the employer including its directors and associated companies.
• the purpose of the acquisition is not for disposal or letting to the employer, including its directors and associated companies
• the scheme must have sufficient liquid investments to meet its liabilities
• the acquisition and development of a property with a view to its disposal is not regarded as a tax exempt scheme investment
• the acquisition of property for personal use (rather than for investment purposes) is prohibited

Once these criteria are satisfied a scheme can invest in any type of property based anywhere in the world. This can include residential, office and industrial buildings.

Our innovative Propertyline Service relates to properties purchased in the UK and Ireland only. ITC will also facilitate purchases outside of these areas.  However this requires legal and financial planning.  Please contact us for further information.

GUIDE TO ITC PROPERTYLINE SERVICE

Propertyline Steps

1. Application Form
2. Valuation
3. Borrowing
4. Insurance
5. Legals
6. Property Management

STEP 1. Propertyline Application Form
When you have identified the property that you want to buy, the first step is to advise the estate agent or the vendor that the contracts must be forwarded to ITC's Legal Department.  It is important to realise that your scheme is the Purchaser rather than you personally. You then contact ITC and complete a Propertyline Application Form.  When we have received a completed form, we will then arrange the loan. It is very important that all the fields of the form are completed and the form submitted without delay.

STEP 2. Valuation
Requirements in relation to the administration of your scheme necessitate that all properties are valued by ITC's own valuer.  This means that we are in a position to monitor fluctuations in value, to monitor insurance levels, and ensure your scheme is fully compliant with Revenue regulations on an ongoing basis.

STEP 3. Borrowing
ITC will in conjunction with your broker/financial advisor make the loan application on your behalf directly with the bank selected by you on the Propertyline Application Form. ITC does not act as a mortgage broker. Our main concern is to ensure the smooth processing of the loan and the timely purchase of the property.

• Your loan will be granted on a limited recourse basis. This means that the bank has security over the particular property only and not over any other of your personally owned assets or any other assets of the pension scheme.
• Banks are currently offering loans of up to 70% (LTV) of the purchase price of the property for a term of maximum 15 years.
• An arrangement fee of 0.5% - 1% of the loan amount and a legal fee may be applied by the bank.
• Interest rates vary in accordance with market rates. ITC does not negotiate interest rates with the bank. It is at your or your broker/financial advisor's discretion to do so.
• The granting of the loan is subject to the bank’s lending criteria. ITC cannot guarantee loan approval.
• An equity balance of €10,000 must be available at all times in your trust account to protect the liquidity of the trust.
  

When the Loan Offer has issued you will be contacted by ITC to approve it.

STEP 4. Insurance
ITC has its own insurance policy for all properties held in a pension trust. It is not necessary for you to arrange property insurance as the property is already covered as from the date of closing. The insurance is specially designed for trusts. If the property is already covered by Block Insurance this will be added on to provide contents cover and Owner’s Liability Insurance.
 
It is essential that you advise us of the type of tenants to whom you are renting the property ie: Professional, Social Welfare, Students or Commercial as this has a bearing on the insurance contract.

STEP 5. Legals
ITC’s Legal Department undertakes the conveyancing of Irish properties. They will liaise with the vendor’s solicitor, examine the title, have the contracts signed, draft the title deeds, deal with the bank’s solicitor and close the deal. If it is a UK property, ITC will appoint a solicitor in the UK. The Legal Department also provides a Tenancy Agreement as part of the service.

STEP 6. Property Management
It is important that a professional Property Manager is appointed to manage the property.  Please enter his/her details on the Propertyline Enquiry Form.

A Property Management Agreement must be signed by the Property Manager to ensure that he/she is aware of his/her duties and responsibilities. A draft Property Manager's Agreement is enclosed with your Propertyline Pack.

The Rent can be paid to the professional Property Manager and expenses appropriate to the property discharged from the income. The balance is paid to the property bank account. The agent provides accounts to ITC on a yearly basis.

VAT NOTE
Commercial properties and commercial lettings may be registered for VAT. This will enable VAT paid to be reclaimed from Revenue (or offset against any VAT liability). If you wish to register your property for VAT please include this information on the Propertyline Application Form. We will then refer all VAT issues including registration and returns to ITC’s VAT agent.
There is a separate fee payable for this service.

For further information  please contact us here