EXPERT ADVICE PETER CHADBORN, PLAN MONEY

Ms Williams has done well with her buy-to-let property. Longstanding, trouble-free tenants are hard to come by.

The arrival of Crossrail could certainly see a significant rise in value but this poses a dilemma: does she sell and realise her gain but lose her reliable tenants, or does she retain the tenants at the expense of a profit? If she does retain the property, is a rent rise reasonable on the basis of increased property values?

A further consideration for Ms Williams is to look at converting all or part of her interest-only mortgage to a repayment loan, depending on her long-term plans.

Capital gains tax is a significant consideration for all investment property owners. The taxfree allowance on any gain is currently £11,100 but this is relatively low in relation to a gain of, say, £100,000 on the sale of such a property.

The tax rates for gains are 28pc for higher-rate taxpayers and 18pc for those who pay the basic rate. But the latter will pay 28pc on gains that exceed the basic-rate band. A strong argument for investing in pensions and Isas is that growth is exempt from capital gains tax. Before committing any disposable income towards savings, pensions or Isas, I would recommend that Ms Williams considers insurance. I agree with her view that life cover is not a priority but she does need to think about the financial consequences of serious illness or longterm incapacity. She believes that she could sell one of her properties but that may not be viable, depending on the state of the property market.

Furthermore, the property investments are a core part of her long-term financial security and possibly retirement income. These needs will still exist and it will therefore be more important than ever to hang on to these valuable assets, not be forced to sell them through financial necessity.