Mortgage Advisors & Estate Agents
At Fern Wills & LPAs, we understand the importance of holistic property solutions, where mortgage advisors, estate agents, and estate planners work together to find the best solutions for clients.
We consult with the client's preferred Property professionals (Mortgage & Protection Advisor or Estate Agent) or introduce them to ours if they do not have their own.
We will conduct thorough due diligence to ensure that the service, pricing transparency, and business ethics are as exceptional as our own. To strengthen client relationships with property professionals, we provide guidance and support on engaging clients and prospects in estate planning discussions.
Ethical Estate agents find it concerning when people take a mortgage without the protection of tailored insurance or a Will. We welcome calls from clients, mortgage advisers, and estate agents who wish to discuss how we can collaborate to deliver excellent service and a comprehensive solution for all clients' property needs.
I regularly advise clients to contact their mortgage advisor about mortgage payment protection. As a CeMap (Distinction) qualified professional with 35 years of property experience, I understand the essential role that insurance plays in protecting homes against loss of income due to no fault of the client.
I have been writing Wills for clients for over a decade. I am now in a fortunate position where clients call me to ask for advice on behalf of their adult children.
Case examples.
🌿Leaving property in a Will
As part of a fact-finding exercise, a client informed me that he wished to leave his £460,000 house to his wife and three children.
I asked. "What percentage of the property is mortgaged (Loan To Value - LTV)?"
He said about £185k, so roughly 40% LTV.
I asked, "If either of you were to pass away, could the other continue to make the mortgage payments or pay off the mortgage, comfortably?"
He said, "No"
My answer was that he could not leave the house to his children with certainty, until he had a solution to either clear the mortgage or was prepared to sell it.
Whilst he was aware of mortgage protection, he had considered being alive to sort out problems if he could not pay the mortgage due to loss of income through no fault of his own. He had not thought that he or his wife might not be alive to do so.
I referred him to the mortgage advisor to arrange a suitable insurance policy.
🌿Ethical trusted advisor
A couple spoke to their mortgage broker about getting a better deal. They had eight months remaining on a four-year fixed-rate mortgage. Although the mortgage advisor wanted the business, he was ethical and advised the clients to hold onto the deal they already had. He would then renew the search for them when they had two months left.
He asked them if they had a Will in place to pass the property on to a loved one. They said no. He said "Oh, Ok" "Let me fix that for you"
He introduced Fern Wills, who helped the client. This reinforced the mortgage advisor's "trusted Advisor status", demonstrated his holistic approach to all their property needs, and maintained the relationship for the next six months until he found them the best mortgage deal.
If there is a mortgage on the property, it can not be passed to anyone else unless the mortgage is transferred or repaid. This can cause delays and distress, and potentially resulting in the loss of the home.
🌿Modest Inheritance
The client had received a modest inheritance. The customer requested that I rewrite their Will to reflect their new financial circumstances. They also gave part of it to their daughter as a deposit on a first house. They asked, who could help a first-time buyer with a generous deposit but a low income? As part of the estate planning solution, I introduced them to a mortgage advisor and an estate agent whom I knew could help, as they had already assisted my daughter in a similar situation.
🌿Older couple helping their son
An older couple were shocked at how much their estate was worth and their potential Inheritance tax burden, which was higher than the price they paid for the house, due to the rise in their property value. I referred them to an estate agent who sourced a smaller, home with a beautiful garden that they had always wanted, but did not think that they could afford.
The second part was a Flexible Life Interest trust that allowed gifting to beneficiaries as PETS (potentially exempt transfers), even if one of the couple passed away.
The third part was to give money to their son to buy a house. This was tax-free if the couple lived for a further seven years, and the tax was significantly reduced even after three years. The house could be modest, but would need a large secure garage or enough land to build on, and the area must be fairly private for security. These could be used for the son's landscape building business. I referred to an estate agent who could source these more unusual properties. He found a farmhouse cottage with land and a good garage. The son was self-employed, so would have struggled to get the best mortgage without an experienced mortgage and protection advisor to help.
🌿Unequal deposits
An unmarried couple were putting down unequal deposits. One was putting in a £50k deposit, and the other a £150k deposit from an inheritance from her grandfather. Though deeply in love and planning a long future together, the inheritance had to be protected. The mortgage advisor arranged mortgage payment protection. Fern Wills arranged a declaration of trust and a property protection trust to ensure that, in the event of selling the property, separation, marriage, or the passing away of one of them, the property would be protected. The additional £100k would always be returned to the family.
🌿Buy-to-Let Tax.
The estate agent regularly found great investment properties for the clients, and the mortgage advisor arranged the finance. The whole purpose was to create income now and a pension. Mrs was in a higher tax bracket. Therefore, after tax, there was little profit. They referred the client to Chris at Fern Wills. Chris is qualified at CeMap (Distinction) and has a portfolio of his own. He combined this with his legal knowledge to arrange a Declaration (deed) of Trust. It maintained ownership of the property while splitting the income 95/5. The lower taxpayer received 95% of the income and incurred 95% of the costs. Whilst both retained the right to occupy 100%. This changed from a break-even to a profit. The property was then placed into a property protection trust to safeguard it from outside interests and ensure the children received an inheritance. The trust only activated upon a death, so it incurred no ongoing costs, and could be changed or revoked easily while both were alive.
🌿Retired Mum getting everything ready
One of the nicest collaborations we project managed was for a retired mother. Margaret was preparing everything for her sons. Her mother (Rose) had passed away, leaving very little cash, after living in a care home for the latter part of her life due to her early-onset dementia, shortly after her husband had passed. The house remained, but was in a poor state because it had sat empty for years. The family was unable to access Rose's finances to maintain or rent out the house without a power of attorney. Margaret had to take an expensive loan to pay the inheritance tax on Rose's house when she inherited it.
Margaret was adamant she would not leave a financial dilemma or mess for her sons. Fern Wills arranged the Lasting Powers of Attorney. This ensured that her sons could make important financial decisions if Margaret lost capacity or it became too difficult for her.
Margaret gifted the property to her sons, incurring no capital gains or inheritance tax.
The mortgage and protection advisor arranged a mortgage for the sons, releasing equity to fund the renovation of the old property into a House of Multiple Occupancy (HMO). The estate agent found tenants. This increased the property's value with minimal future Capital Gains tax, as much of the expenditure was on repairs. Fern's preferred accountant advised on the financial options and consequences. The rent generated a regular income that could cover the mortgage in the short to mid-term and any future care that Margaret may require in the mid- to long-term. If Margaret lived for a further three years, each son would incur less inheritance tax each year until year seven, when Rose's property would incur 0% inheritance tax. Margaret had her own home, so there was no reservation of benefit, nor was the gift made to avoid care fees, as there was a documented reason for the gift with a clear financial rationale.
The Will and trust were drafted to ensure that the property would pass to each son's family if either of them passed away or to the other brother if there were no other family beneficiaries. T
The total cost of advice and service for the Estate agent, mortgage advisor, accountant, conveyancer, powers of attorney, three wills and three trusts: Cost less than six weeks' of Rose's former care home fees. The sons would save an estimated £340k inheritance tax, and the family would have security, peace of mind and a regular income for the foreseeable future.
