She Owned Seven Rentals but No Will, No Life Cover and No Plan

Case Study: How We Found An AFFORDABLE Solution.

When a long-standing landlord from the South East contacted Property118, her goal was not to cut tax or refinance for growth. She simply wanted to make sure her partner would not face financial chaos if she died unexpectedly.

“I’m not worried about paying some tax,” she said. “I just don’t want my partner to have to sell properties in a panic or deal with frozen bank accounts when I’m gone.”

She owns seven rental properties in her personal name, worth around £1.2 million with mortgages totalling £112,000. That is a modest loan-to-value of roughly 9%, which gives the family excellent security and refinancing options.

Alongside her rental income, she earns about £45,000 per year in a self-employed role. Her wish was simple: for her partner to inherit the portfolio and outsource the management. Yet she had no Will, no Lasting Powers of Attorney (LPAs) and no life cover to help her family handle debts, liquidity or Inheritance Tax.

The Property118 Consultation

During her consultation, she explained that she could manage the Section 24 mortgage restrictions and preferred to draw all profits personally rather than retain them within a company. She was not chasing tax advantages. Her concern was continuity: ensuring her loved ones could repay the small mortgage balance, handle any IHT obligations and avoid unnecessary stress or forced sales.

Property118 referred her to an FCA-regulated adviser to explore suitable protection options. The brief was clear. The plan had to give her partner short-term financial breathing space, not just another insurance policy.

Our Recommendations

Given the very low gearing of the portfolio, refinancing after death should be straightforward. The real challenge is not affordability or lender appetite but timing. Executors often face a short period where access to funds is restricted before probate is complete.

A proportionate option could therefore be a short-term liquidity policy rather than a full debt-repayment plan. This would provide ready cash to cover mortgage payments, fees and IHT instalments while a few properties are sold.

The purpose here is to give the family time, not to replace long-term borrowing. Tailoring the cover in this way would likely reduce premiums while still meeting the practical need.

Critical Illness and Income Protection Cover

Optional additions to support income if illness or injury prevents work or property management.

Will and Lasting Powers of Attorney (LPAs)

Referral to a STEP-qualified solicitor for Will drafting and LPA registration.

These documents would allow the attorney(s) to collect rent, access bank accounts and manage the business if the client becomes incapacitated.

The first year’s savings we helped her to make on the renewal of her landlord insurance helped to pay for this legal work.

Executor Guidance Note

A practical written roadmap stored with the Will, setting out how to manage refinancing, sales and IHT step by step.

Proportionate Planning, Not Over-Insurance

This case highlights a common issue for landlords. Many are encouraged to over-insure when a focused liquidity plan would achieve the desired results at far lower cost. There is an argument for arranging enough life cover to repay the mortgage and pay the IHT entirely, but that was not this client’s plan, nor would it have been affordable for her.

In this case, the client’s wealth lies in property equity rather than cash. Selling one or two assets after death would easily clear the debt and meet any tax liability. The real difficulty is bridging the short-term gap between death and probate. A modest policy held in trust can achieve that efficiently without unnecessary cost.

This reflects a key Property118 principle: insurance should follow the commercial logic of the estate, not replace it.

Key Outcomes

By combining trust-based life cover with a Will, LPAs and executor guidance, the family will be able to:

• Access cash immediately to meet IHT instalments and mortgage costs.
• Avoid distress sales or expensive bridging.
• Retain control of the portfolio and sell assets at their own pace.
• Keep proceeds outside the estate, avoiding delays during probate.

The recommendation mirrors the client’s own objective: to give her partner and her son the time and confidence to act calmly.

⚖️ Important Notice – Scope of Planning Support

Where our recommendations touch on areas requiring regulated input, we refer clients to appropriately authorised professionals for advice and execution.