Jonathan Hooker

“We are a small family-run business. We were advised around 2000 that we should set up a Small Self-Administered Pension Scheme with the aim of being able to invest monies from our company into a structure that meant we had control of the funds and what we could invest in to give us financial security when we got to pension age. 

At the time we were able to invest in Freehold Ground rents. As we were in the property business, we understood these and decided that they were a good long-term investment to provide for our longer-term pension requirements and financial stability and Independence. 

They provided steady income and the opportunity to receive lease extensions in the future. A few years later having purchased a significant amount, the government decided that these were no longer appropriate to hold as Small Self-Administered Scheme(SSAS) and they changed the rule for investing in these. Over the years, they have provided a secure and steady income. 

Now though, the government has decided to reform ground rents, to the detriment of existing Freeholders like us who have built their future pension income and investment strategy over our working careers. The view from the government being they will now abolish/cap ground rents and remove marriage value without stating upfront what a suitable alternative should be. 

This has put us into a difficult situation overnight, of reduced income from loss of ground rents and also huge losses on future lease extensions. How can the government do this retrospectively? The very assets that we invested in throughout our working lives to provide secure pension income. 

Each successive government has tinkered with pension schemes changing the rules when it suits them mainly to penalise pension schemes and also tax more. 

What about pensioners who have built investments for long term growth and security? Just tossed aside with no consideration of sensible, practical, solutions and now facing life changing financial losses. 

There must be a more sensible way to deal with this whilst protecting pensioners security.”