Research carried out for The Money Centre has shown that a proportion of landlords have not adequately protected themselves or their loved ones against potential risk if they were to die, suffer a critical illness or become temporarily disabled.

Many landlords have bought property for retirement, their family or as a general investment but one in seven are unaware of their position if the worst happened and worryingly, one in 10 say they would be unable to cover their borrowing obligations if the unexpected happened to them.

The study also reports that four in 10 landlords have taken no action and have no short term plans to review their wills and trusts to alleviate any potential Inheritance Tax (IHT) liabilities, which could cause bereaved families unnecessary financial loss at a time of need.

“This research confirms that not all landlords are aware of the potential risk that investing in property can bring,” said managing director of The Money Centre, Mark Alexander.

“It is essential to protect their investments against unwanted circumstances. Protection isn’t just about removing the monthly mortgage payments; it can also help to cover lifestyle expenses.

“Having the right protection in place should be a vital part of their portfolio strategy and they need to consider removing the risk they may be imposing on their loved ones if something terrible were to happen to them.”

The Money Centre, one of the UK’s largest independent buy-to-let and commercial mortgage brokers, has recently diversified and is offering a free portfolio analysis review service to help landlords identify and mitigate such risk. More details at www.themoneycentre.co.uk.