Landlords in trouble shouldn't just walk away!

The latest figures from the CML show that arrears in the buy-to-let sector which were below those in the owner occupier market for many years have now overtaken this sector.

David Ireland, chief executive of the Empty Homes Agency, recently highlighted that: "The proportion of buy-to-let properties being repossessed is far higher than owner occupied."

One financial adviser, recently told FTAdviser.com that he had recently come across two cases where people simply walked away from their property because they could not pay their mortgage.

Chris Horne, director of Property Hawk the UK's leading independent website for landlords warns landlords against simply abandoning properties. The his because the landlord could still be pursued by the lender.

He said: "In the US a foreclosure sees the mortgage company take back the house and sell it and keep the entire proceeds but they don’t pursue the individual for the outstanding balance.

"In these cases some householders have just left their properties, left the keys in the letterbox and walked away knowing the balance sheet is wiped clean."

In the UK its different. Landlords that walk away from their buy-to-let property will still be liable for their debts and just to walk away will not be the end of the problem for a landlord.

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