Tim

Sorry for delay in answering your question. Firstly holding a house or any
residential property in a SIPP would be classed as a taxable investment so in
reality it is not viable. its not just the income and capital gain that are
taxed but the value of the property itself. So image giving away40% of your pot.
it's just an asset you want to hold.

In terms of illness incapacity, the earliest date you can draw from a SIPP is 55
unless you are in serious/terminally ill.

Finally in terms of drawing income, you no longer have to buy an annuity at all.
You may use something called capped drawdown or flexible drawdown. The first
allows you to take out at an rate broadly equivalent to an equivalent annuity,
the latter lets you draw all of the fund out in one go if you wish (and pay tax
on the excess above your tax free lump sum) provided you have secured a Minimum
Income Requirment of at least £20,000 first.

Hope thats helpful

Martin