These problems were three times as Lessor:

1. The rent the landlordhas been promised by the sales staff never realized.

2. The landlord is letting unrealistic expectations), according to their holdings from excessively high rents, which were never kept, as they occur due to high lead cavities (their properties only for 70-80% of the time.

3. The prices, which have bought the landlord in order even with a supposed rebate was much higher than a realistic market value. The result is a significant capital loss if the properties are eventually sold, which is probablybe in the order of 30 -40%.

In addition to these immediate problems with the landlord buy-to-let property portfolio, the landlord also borrowed money to pay the mortgages on their properties if they were empty. This additional borrowing now stands at around 100,000 pounds.

I suspect that this poor woman owner is not alone among the landlords. I am careful to point out that I advise strongly correlated with the rest of the team of Hawk Property Owners to AvoidThis type of "discount" off-plan investments from the outset. Unfortunately, some owners may already have for the sales pitch. PLEASE DO NOT fall for it!

All this led me to think what would I do if I was confronted with this situation?

ACTION PLAN

First, the solution for every problem starts with the fact that you accept as a landlord that there is a problem. Too many newbie landlords are still in denial. They bought a buy-to-let 2 bed apartment to say, 3 years agofor £ 150,000. "Everyone knows that house prices have been going."

Therefore, it is worth at least £ 150,000, probably a bit more. The reality is, unless the owner has bought in London, which is very unlikely to be the case. The flood of new build "luxury" buy-to-let flats has resulted in supply exceeding demand and continue to press these values.

Therefore, a landlord has a precise value of what their property investments, it is really worth to get. At first glance,It is not difficult. Thanks to the Land Registry there are now numerous websites, which can get a rental prices of actual sales in and around their property. I would suggest our homes as one of the best.

However, landlords should be aware that their properties were sold at a discount off the list price, not the actual selling price is often discounted or shown. Otherwise, a few local estate agents have to enter a value and ask them to price it to sell. Agents arenothing else to say, their potential customers what they want to hear to get your business. This is not necessarily the hard truth. After this process, you have to sit down as a landlord and buy-to-let owners are open and how to hide your negative equity approach.

I will simply hand back the keys!

Some owners still think that the purchase is release-to-negative equity as simple as returning the keys to their housing investmenttheir buy-to-let mortgage lender. Thus, the residential investment property is no longer their problem.

"The buy-to-let mortgage lender can sort it out!"

Here, too, unfortunately, wrong. The buy-to-let mortgage company is after all owned by the owner buy-to-let investment, if a landlord keeps the payment of the buy-to-let mortgage. The buy-to-let mortgage companies will then sell the home of the lessor, as investment property. However, an empty buy-to-let apartmentthe market knows, is a forced sale, probably sold at an auction that the chances that the buy-to-let property will be bought by another buy to let investor to examine the details of the investments and looking for a real estate bargains (BMV property).

The odds are in this case that a buy-to-let as an investment property will not even get by 90% of property buyers, owners / occupiers are seen. Not only the owner or occupier to make the most of the potential buyers, butAlso likely to be paying more. This is because they are ultimately looking for a home and are therefore not in the way of financial returns, buy-to-let investors are limited. The result of the forced sale of the buy-to-let mortgage lender the investment of a landlord's property that the landlord is likely to get less for their buy-to-let investment than if they in control of the sales process.

How does a landlord safe buying property?

The reality is that theBuy-to-let mortgage lender is not excessively so, the best care price, especially when they can easily recoup their mortgage advance. Their goal is simple, which can buy repossessed and for sale as investment property as soon as they can. Once the buy-to-let mortgage lender has the residential investment property as they are sold to the owner to submit an invoice. This demand will not buy any shortfall in the repayment of the outstanding include-to-let mortgage missed mortgage buy-to-letPayments and fees and expenses incurred in the removal of housing costs than investment property. These fees should be substantial, and the total demand from the buy-to-let mortgage lender could easily run into tens of thousands of pounds. A sum that is capable of having a real estate investor to take many, many years to pay off.

A landlord of the best options

The best option for a landlord in this unfortunate situation is faced primarily with the facts, take control. A landlordshould base their assessments can be realistic for their purchase of investment to find out how much is their negative equity. Then have to reimburse a landlord in preparing a strategy to it. This may not be easy. Many landlords to interest only mortgages are already struggling to meet their buy-to-let mortgage repayments. However, I would suggest that a landlord should consider these four points:

1. Owners should look is a low annual percentage rate (APR). This ensures that theyMinimize the required payments over the term of the loan. It is possible to obtain annual percentage rate in the low 6%.

2. Owners should consider, achieved savings to a make off on the payment on the buy-to-let mortgage and minimize their negative equity that way.

3. If a landlord has a mortgage on her house, it may well be that they re-mortgage their domestic property to a better interest rate and allow these funds to partially repay its buy-to-let mortgage to wipe theirnegative equity.

4. The best way for me is when a landlord rents are strong, their loans from all interested to convert only a portion of recovery. In this way the landlord the money can be earned quality of their Purchase-to-back slow negative equity real estate investments.

Doing nothing is not an option.

One thing I would strongly advice the owner of this unfortunate situation can not be ignored. It will not be mitigated to rapidly rising house prices as happened inprevious years. Therefore, a landlords' Face the Music "and advised by professionals, take mortgage consultant to ensure their facilities and especially that they pay off their negative equity to give to a landlord and property investor a secure long-term sustained real estate investments.