Episode 19 Homes Under the Hammer


Episode 19

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Transcript


LineFromTo

Hello, and welcome to the show.

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Now, auction properties come in all shapes and sizes, from one-bedroom

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flats to country castles, though not this one, I hasten to add.

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Now, you may not be in the market for a castle,

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but just looking for something with a bit of character.

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Absolutely, so why not why not start with a property

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auction on Homes Under The Hammer?

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I just love meeting people on Homes Under The Hammer,

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because everybody's got so much enthusiasm.

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Yeah, it's great, especially when people take on a real challenge.

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So let's see what today's enthusiasts have got up to.

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Are you looking to expand?

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This two-bed semi in Nottingham may be ideal.

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That's a lot of space.

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I'm excited already!

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Or, does the high life appeal?

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This top-floor flat in Portsmouth fits the bill.

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You can even see the Isle of Wight out there!

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And, if it's original features you're after,

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this Crewe property offers plenty.

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Probably one of the earliest electric showers.

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I wouldn't necessarily want to turn it on and then get in the shower.

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Bzzk!

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All these properties have been sold at auction.

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We'll find out who bought them, what they paid for them,

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when they went under the hammer.

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You bought it, sir, well done.

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Basford is a suburb of Nottingham,

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and once was home to a soap factory dating from the 1890s.

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And, while the factory closed in 2005, the area still scrubs up well,

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with excellent transport links via road and tram to the city centre.

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Just two miles away from the centre of Nottingham,

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and just half a mile away to the nearest tram stop,

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is the property I'm here to see, on this busy and noisy road.

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It's a two-bed detached property,

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with a guide price of £80,000. Let's take a look.

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A detached property with off-street parking? Looking good already.

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OK, very warm, welcoming feeling as you come in.

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Central heating here, which is good. I like that.

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And I haven't seen these for some time - polystyrene tiles.

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Small front room here, but a really big window

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bringing lots of light in, which is fantastic.

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Through into the kitchen,

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which, to me, looks new, or relatively new.

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It's not my style, but you can actually come in here straightaway.

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Totally liveable at the moment, totally liveable,

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and I like what I'm seeing.

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Let's see what else we can find.

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Into the dining room, then. It's a decent-sized dining room.

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I do like that window. It's huge, bringing lots of light in.

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You've got a fireplace here.

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Again, it's all in good condition so far, this house.

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But my eye's drawn to this wall here. Now, it's...

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This will be a load-bearing wall, for sure,

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so you could get a builder in to have a look at that for you if you

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were thinking about opening it up, because modern day fashion is

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having a dining room and a kitchen connected.

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That's my kind of style.

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My kind of style is also houses in good order, which this is,

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despite the fire hazard of the polystyrene tiles,

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but so far, so good. So many options.

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OK, upstairs.

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First thing you can see is this big cupboard, which is

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storage space, shelving.

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More storage space in there, a big storage cupboard,

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so you could actually get rid of this one,

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and open up the landing, give yourself a bit more space.

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Big bedroom there, big double bedroom there, lots of light.

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Lovely, in great condition, bathroom,

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with a nice big corner bath.

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Very nice, I like that.

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Into the second bedroom, more space, or should I say more hanging space?

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Wardrobe space, there. This property is in really good condition.

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Double-glazed windows look like they've just been put in,

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and in good working order,

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overlooking a garden, which I wasn't expecting.

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It's a large garden.

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I think I'm going to investigate that just a little bit further.

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Come with me.

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Give me a minute to get down the stairs, though,

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I'm not as fit as I used to be.

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I've spotted something outside, which may be of interest.

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This back garden is huge. Goes back a long way.

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Lots of space, nice and wide,

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but what I have noticed there's a single-storey extension there, but,

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even better, there's a double-storey extension on that side.

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Now, I'm getting quite excited, because

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why not do the same? They've set a precedent there.

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Bring it out, you could have a large kitchen-dining room,

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you could have another bedroom, an even bigger bathroom,

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maybe even a couple of en-suites as well,

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but that's a lot of space, and a lot of addition to this house.

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I'm excited already!

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Extensions are expensive, but can add value. Worth it?

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Who better to ask than an agent from the auction house who sold

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this property, which was guided at £80,000.

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Subject to appropriate planning consent,

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I could see this being extended at the back.

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You've got a large garden, you've got plenty of scope there to extend.

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I could see this being converted into a four-bedroom detached

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property, with a larger living quarter,

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maybe a dining kitchen, and you've got four bedrooms,

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so it would become a good family residence.

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We are on the same page here, me and the agent.

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Extension and a kitchen-diner, but how much would the extension cost?

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With regards to the extension,

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I see builders quoting within the region of around £25,000 - £30,000.

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All right, comparison time -

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what is the property worth in its current layout?

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I could see this on the market within

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the region of around £115,000.

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Rental-wise, I see this achieving £550 per calendar month.

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And if the property were extended?

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I see this property, once it's been extended

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to a three/four-bedroom detached property, in good order,

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I see this selling within the region of around £150,000.

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Again, if it's been extended to three/four bedrooms,

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in good order, I see this on the rental market

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somewhere in the region of around £800-£850 per calendar month.

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Well, there could be a healthy profit in there, but as always,

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everything hinges on how far off the guide price of £80,000 it sells for.

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Its good condition could make for some fierce competition.

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What can I say? What a house, what a garden, and what potential.

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Let's see who saw this great opportunity when it went to auction.

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We're back in the catalogue at lot number eight. The guide is 80-plus.

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Start me at £80,000. It's well worth all of that. £80,000 for it?

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78? Thank you. 78, I've taken. 79.

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80,000. 81.

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82.

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It's no surprise that this lot was keenly contested, and we rejoin

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the auction as it approaches climax, with a price of £103,000.

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Yes or no? 103. Used to be indecisive, but now he's not sure.

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LAUGHTER

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103 and a half, 104.

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104 and a half. 105.

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105 and a half.

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106,000 is bid. £106,000, the bid's nearer to me.

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And a half. 107.

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£107,000 once...

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..twice, third opportunity...

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Sold at 107,000. Thank you.

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Bobby here in the middle is a doctor,

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and the one who has just paid 27 grand over the guide price.

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They do say doctors are getting younger these days,

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and looking at Bobby, I'd have to agree.

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# Oh, Mr Medicine, I'm so happy you came here. #

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Well, I'm glad this medicine man has the time to give us his

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prescription for this house, which is already in pretty good health.

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Bobby, nice to meet you. Congratulations.

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-Thank you very much.

-First thing I've got to say - incredibly smart.

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-Oh, that's very kind of you.

-I like that. I like that.

-That's kind.

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Tell us about the auction experience for you, pal.

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OK, well, that was our first auction,

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and I went along with my practice manager,

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who also knows nothing about auctions,

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-and a couple of right-hand men, one of whom's a builder...

-Yep.

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..who'd seen the property before we went to the auction,

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and we were quite laid-back in the auction.

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Quite early on, we realised that the bidding had slowed down,

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so there was a chance that we could actually get

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the property for what we wanted.

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Now, did your right-hand men, were they helping you?

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-Nudging you along?

-Well, I was almost falling asleep.

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-This is not a joke.

-How cool!

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I got a nudge. I got a nudge from the guys. "Better put a bid in."

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So that's what we did.

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I'm not qualified to diagnose sleep problems, but you are pretty

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relaxed if you can grab 40 winks in an auction environment.

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Thankfully, Bobby is wide awake to this property's potential,

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and what he's going to do with it.

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So we've applied for planning permission,

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and we're thinking if we can convert the two-bedroomed

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property into a four, because there's some space at the back...

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OK, so that's extending out the back of the kitchen and the dining room?

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Yes. And other people on the road have done extensions as well,

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so we're quite confident we'd get the planning permission.

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The kitchen's going to be extended...

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-Yep.

-..out that way, so it's actually quite a big room.

-Yep.

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And I think he's talking about making a downstairs toilet as well.

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-Nice.

-And then upstairs, there'll be scope to get rid of the bathroom,

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convert that into another bedroom, and then have another one,

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so it'll be like a double-storey extension.

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-One of the bedrooms, I imagine, will have

-an en-suite? That's right.

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Yeah. And then another bedroom going out as well. It's our first project,

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so we're really just going to roll the dice and see what happens.

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Fantastic.

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Bobby's builder, Carl, will be busy.

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Apart from the extension, the outside will get attention too,

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including the garden, driveway, and re-rendering the exterior walls.

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Bobby's right-hand man, Phil, will also be working across the

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project, while Bobby keeps busy running his three private clinics.

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So, what's the budget?

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We might spend £40,000 or £50,000 on the property,

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and then we'll see where it goes from there.

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It's quite a lot, isn't it, really? You could get a lot done for that.

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Yeah, and we've got the manpower, you see. Most people are limited by

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the builders, but we've got a team here who work with me

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at the clinics that I run, so they're already on board.

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OK. So you know them already, you know what they're capable of.

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Very trustworthy, very honest people,

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and I think that's the strength of the project.

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And how long are you hoping for that to take?

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Well, these guys are quick, so we're thinking six months.

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-Maybe even quicker.

-They ARE good!

-Yeah!

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-The planning permission takes six to eight weeks...

-Yeah.

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..and I think he's saying that,

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a couple of months after that, he should be done.

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# Trust me, trust me, I'm a doctor

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# I know, I know, what I'm doing

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# I know, I know, what I'm doing, girl. #

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But Bobby isn't the only doctor in the house.

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I also hold a doctorate - I do, I promise you. Newman University.

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It's Doctor of Law, I think you'll find.

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You don't have to be that smart to spot that Bobby

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is in danger of overspending on this project.

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If he spends £50,000, on top of that 107 grand,

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he'll be £7,000 over the agent's valuation of an extended property.

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What does he hope this project will achieve for him?

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This might be a nice little project in the background,

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which could act as a pension, maybe, one day.

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I'm guessing that you being a doctor and me

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being a doctor are very different.

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-Are you a doctor?

-I was given mine, and you've sort of worked at yours.

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-Oh, I see.

-Not quite the same.

-Well, you're probably a real doctor, then.

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-I'm just someone who went to university.

-A doctorate.

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-Yeah. A doctorate.

-That's as far as I'll go. Bobby, good luck.

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-Nice to meet you.

-Thank you very much, and likewise.

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I think busy man Bobby has fallen on his feet here.

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This is a gem of a house. He's got his right-hand men to help him out.

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If they're as good as he says they are, when this is finished,

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it's going to look amazing.

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You can find out how he gets on later in the programme.

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# Round, round, get around, I get around

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# Yeah, get around, woo woo, I get around

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# Get around, round round... #

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In all my travels around the country,

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there's nothing I like better than a trip to the seaside,

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and today I'm in Portsmouth, spiritual home to the Royal Navy.

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Portsmouth is the only city in England with a greater

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population density than London, and demand is on the rise.

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Now, property prices in this area have gone up 10% in the last

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six months, and who can blame them?

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You're just a short walk from the beach,

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surrounded by the amenities of a town, and still part of a city.

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All sounds good?

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So let's see if this two-bed flat, with a guide price

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of £80,000-plus, can tempt me up three flights of stairs.

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And breathe.

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Now, I like to think of myself as a fit person,

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but after climbing all those stairs, I don't think I am.

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Right, so there you have it.

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You've got to negotiate three flights of stairs

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before you've even got in the front door.

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Luckily, you've got an intercom system here, which you will need,

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let me tell you. But the flat is in really good condition.

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Not what I was expecting at all.

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It's got a great feel to the place. Very contemporary.

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Nice floors, not a bad kitchen.

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It's the sort of room that you'll have as a kitchen, a dining area,

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maybe a little sofa in the corner,

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so it combines all three of those uses,

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and, erm... I'm still out of breath.

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Come over here, look, you can see all across the rooftops, and if you

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look right on beyond, you can even see the Isle of Wight out there.

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It's a great flat,

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but people with a fear of heights maybe need not apply.

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# I'll be back in the high life again

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# All the doors I closed one time will open up again. #

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If height doesn't bother you, what about the noise?

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The two double bedrooms overlook the busy street below,

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so it might not be the most peaceful sleep in Portsmouth,

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and let's not forget our feathered friends, who roost on any

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available roof space, and don't mind who knows about it.

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Now, talking of roofs...

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This top-floor flat is under what is known as a mansard roof,

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which is basically a roof that has steep sloping sides on all ends.

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Now, it's a really practical way of getting living space into what

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is effectively an attic,

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so you don't have that feeling of low, sloping ceilings in here

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- look, it's quite high -

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but you are still just a short distance from the outside world

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out there, so making sure you're watertight should be your priority.

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I'm not sure this roof passes that test, though.

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Well, it's certainly not the dirty bath that's bothering me in here,

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it's what's lurking up in that corner.

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Now, it's obvious there's been some rainwater coming in,

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maybe a few of the tiles are loose, but whoever is looking

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at buying a property like this should investigate that further.

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You walk in here, and the smell is pungent, it's damp, you can

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see streaks of rainwater in the corner over there,

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and also, this wall is slightly wonky.

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It does often make me think,

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"Why did a property like this end up in the auction in the first place?"

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That's a question you've got to ask yourself.

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And, while you ponder that, it'll give a local property expert time

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to climb those stairs in order to give us

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his opinion on this top-floor offering.

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The real selling features of this property is its location.

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It's very close to bus routes, to shops, to bars, to cafes,

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and also the seafront's only a short walk away.

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Negatives -you do have some bars just around the corner which

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do turn into nightclubs,

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but, yeah, generally there's a lot more positives than negatives.

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Well, I can think of some people who consider

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bars on their doorstep to be a right bonus. I'm talking about you, Dion.

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Anyway, if the roof issue was resolved and the interior given

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a bit of a polish, what could this flat - with a guide price of £80,000

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- do in the buoyant Portsmouth property market?

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Once up, I would expect it to achieve £125,000.

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Portsmouth's very popular for renters.

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I would expect to achieve roundabouts £700 per calendar month.

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Well, a small, if slightly leaky, top-floor flat.

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The stairs and main road, they might not be for everyone,

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but so close to the beach and in a very promising area,

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right on the high street, and it seems property prices on the rise.

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Could it be a great buy?

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Well, let's see who grabbed it when it went under the hammer.

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Onto lot 314, a self-contained third-floor flat.

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Two-bedroom accommodation.

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Start me at £70,000.

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Thank you. 70 I have. 71?

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71, in the doorway, thank you. 72. 73

0:18:180:18:22

74.

0:18:220:18:23

There were a few people keen on this property,

0:18:230:18:25

and bidding kept going at a steady pace.

0:18:250:18:28

We rejoin with the price standing at £95,000.

0:18:280:18:32

95, 96.

0:18:320:18:33

97. 98. 99.

0:18:340:18:37

100. 101. 102?

0:18:370:18:40

101. Lady's bid.

0:18:400:18:41

102, anywhere else?

0:18:410:18:43

First time at 101...

0:18:440:18:45

second time at 101...

0:18:460:18:48

the third and final time at 101,000, lady's bid, on my right...

0:18:480:18:51

-GAVEL BANGS

-Sold at 101.

0:18:510:18:53

It was full-time mum, Fay, who made that successful bid of £101,000.

0:18:590:19:04

Fay and her family live not far outside Portsmouth,

0:19:040:19:08

and although she wouldn't claim to be clairvoyant,

0:19:080:19:10

when she saw this fat online, she definitely got more than a feeling.

0:19:100:19:16

# It's more than a feeling (more than a feeling)

0:19:160:19:20

# When I hear that old song... #

0:19:200:19:22

-Fay, congratulations.

-Thank you.

0:19:220:19:24

So, what's the story behind you finding this flat?

0:19:240:19:28

-Well, I've been watching auctions for a long time.

-Yeah.

0:19:280:19:30

Not many places come up in this area, and this one did,

0:19:300:19:35

and even though we'd viewed it,

0:19:350:19:36

we were a bit put off by how far up it was, replacing everything,

0:19:360:19:41

and we thought, "No, we'll leave it,"

0:19:410:19:42

but then on the morning of the auction,

0:19:420:19:44

I was watching it online, and I just had a feeling,

0:19:440:19:47

"This is going to go for a good price, and I can't miss it."

0:19:470:19:50

-So you only decided on the day...

-To buy it, yeah.

-At what time?

0:19:500:19:54

Er, this was about... Probably about midday.

0:19:540:19:57

I'd worked out how many lots were selling, per hour, roughly.

0:19:570:20:02

Unfortunately, they were going a bit slower in the morning,

0:20:020:20:04

so in the afternoon it sped up, and...

0:20:040:20:07

Got to Reading station, and thought, "Not going to make this,"

0:20:070:20:10

cos my husband texted me and said, "It's on lot 294 already,"

0:20:100:20:13

or something, and I was like, "Really not going to make this,"

0:20:130:20:16

and yeah, I literally got to Oxford Circus Tube station, and they'd

0:20:160:20:21

closed the line.

0:20:210:20:23

There was maintenance, and I had to run from there up to

0:20:230:20:25

Marble Arch, so I was running up Oxford Street...

0:20:250:20:28

Like a crazy woman! "I need to buy this flat. Move out my way!"

0:20:280:20:31

Yes, it was a bit like that.

0:20:310:20:33

I was running on the road, by the buses and dodging,

0:20:330:20:35

jumping back on the path, to dodge the buses.

0:20:350:20:37

So what happened when you walked into the auction room?

0:20:370:20:40

Were they bidding fast and furiously?

0:20:400:20:42

Erm, well, there was a few that had slowed it down,

0:20:420:20:44

and I got there at 307, and this was 314, so...

0:20:440:20:48

-Oh, my goodness!

-Yeah, yeah.

0:20:480:20:49

-So you were right. You had a feeling in your stomach...

-Yeah, yeah.

0:20:490:20:52

..that something was going to go your way.

0:20:520:20:55

Full marks to Fay for her tenacity and actually making it to the

0:20:580:21:02

auction house, just in the nick of time.

0:21:020:21:04

She plans to replace the kitchen and bathroom, but will she sell or let?

0:21:050:21:09

We are going to either corporate let,

0:21:120:21:17

or we are going to sell the property on.

0:21:170:21:20

Why corporate lets?

0:21:200:21:22

We don't want a long-standing tenant in the property.

0:21:220:21:27

We would prefer that people come, they stay for a few days,

0:21:270:21:30

or a week or two, hopefully treat the property as their own,

0:21:300:21:34

and then they'll move... Obviously, go home.

0:21:340:21:36

-So who's going to be the person to come in, change the sheets...

-Me.

0:21:360:21:39

-..turn it over, so you're going to do that?

-Yes.

0:21:390:21:41

-It's like a top-end B&B, really.

-Yeah, yeah. It'll give me...

0:21:410:21:44

I'll drop the kids off at school, nursery,

0:21:440:21:46

and then I'll come here, cos typically with corporate lets,

0:21:460:21:49

they'll be going to work sort of eight o'clock in the morning,

0:21:490:21:52

so the property would be empty,

0:21:520:21:53

I'll come after the school run and change those,

0:21:530:21:55

and obviously the person that's then coming later on will arrive

0:21:550:21:59

four, five, maybe, that day, and I'll have it ready for them.

0:21:590:22:03

Fay hopes this project won't take any longer than six months,

0:22:050:22:09

and she's set aside a pretty generous budget of £10,000

0:22:090:22:12

for the renovation.

0:22:120:22:14

The unknown factor is the work that's required on the roof,

0:22:140:22:17

so she's adding an additional five grand.

0:22:170:22:21

All eight of the building's occupants are legally

0:22:210:22:23

required to contribute towards a communal maintenance fund,

0:22:230:22:26

which would include all roofing repairs,

0:22:260:22:29

and this fund is controlled by a property management company.

0:22:290:22:33

So are you ready for a bit of a wrangle?

0:22:330:22:35

Because something like that doesn't happen overnight,

0:22:350:22:38

it doesn't come easy.

0:22:380:22:39

You try to get money out of eight people,

0:22:390:22:41

not everybody has available funds.

0:22:410:22:43

No, no. Well, it's down to them to do that,

0:22:430:22:44

down to the managing company to do that.

0:22:440:22:46

I've already had a few phone conversations with them, to say,

0:22:460:22:49

"Look, this needs to be sorted, because obviously,

0:22:490:22:53

"it's getting worse with every shower that we have."

0:22:530:22:55

Now, I know you're a busy mum. You've got a couple of kids.

0:22:550:22:58

I have, yes.

0:22:580:22:59

How are you going to find the time to do this,

0:22:590:23:01

and why are you doing this, Fay?

0:23:010:23:03

I just need to do something different, for me.

0:23:030:23:08

After I had my son, Jack, he's now six,

0:23:080:23:13

and I went on maternity leave, and I never went back to

0:23:130:23:16

my office job, and sitting at home, nursing him, taking care of him,

0:23:160:23:20

-up popped Homes Under The Hammer...

-Oh, it's our fault(!)

0:23:200:23:23

It's your fault! And I thought, "I can do that."

0:23:230:23:25

I watched people, I thought, "I CAN do that."

0:23:250:23:28

Quite happy to get my hands dirty, and yeah, my little girl,

0:23:280:23:31

Phoebe, she's three, she's at nursery now,

0:23:310:23:33

so the days that she's there, I will be here.

0:23:330:23:37

We're going to be getting tradespeople in,

0:23:370:23:40

where we need to.

0:23:400:23:41

Obviously, the electrics, the plumbing, fitting the kitchen

0:23:410:23:44

and the bathroom, but the rest - tidying up, sanding,

0:23:440:23:50

decorating - I'll be doing that, with, hopefully,

0:23:500:23:53

members of my family that I can rope in.

0:23:530:23:56

I want to give it a bit of a "wow" factor.

0:23:560:23:57

I want prospective buyers to think,

0:23:570:23:59

"Wow, I'd like to live here, this is nice."

0:23:590:24:02

And if we don't sell it, and we keep it and do the corporate lets,

0:24:020:24:06

they're going to want something a little bit special.

0:24:060:24:09

-Well, I'm so excited to see what you do here, Fay. Good luck.

-Thank you.

0:24:090:24:12

-And I really hope you get to the bottom of that roof.

-Yeah, so do we.

0:24:120:24:15

-Thank you.

-Lovely to meet you today. Thank you.

-Thank you.

0:24:150:24:18

Well, you've got to give it to her.

0:24:180:24:20

Fay was lucky enough to even get a bid on this property,

0:24:200:24:23

making it to the auction, and only in the nick of time.

0:24:230:24:27

I just hope she has as much good fortune with the renovation.

0:24:270:24:31

But, you know, I'm worried about that roof, the amount of money

0:24:310:24:34

it will take to repair, and the time factor involved.

0:24:340:24:39

Let's see how she gets on later in the programme.

0:24:390:24:42

'Still to come - there's potential for big profits in Crewe.'

0:24:430:24:47

You're getting - approximately, to make my maths easy -

0:24:470:24:49

-£25,000 a year?

-Yes.

-Yeah.

-We quite like the business.

0:24:490:24:53

While in Portsmouth, Fay's having second thoughts

0:24:540:24:57

-about corporate letting.

-It looks so lovely.

0:24:570:25:00

I don't know, I think I might want to keep it.

0:25:000:25:03

# I'm all about that bass, 'bout that bass, bass, bass, bass, bass. #

0:25:050:25:09

Earlier, it was all about Basford in Nottingham,

0:25:110:25:15

and this detached property, guided at £80,000-plus.

0:25:150:25:18

On the inside, it was a two-bed house in relatively good condition.

0:25:190:25:24

# Cos every inch of you is perfect, from the bottom to the top,

0:25:250:25:28

# Yeah, my mama, she told me, "Don't worry about size." #

0:25:280:25:33

Well, your mama was right,

0:25:340:25:36

but I wondered if this property could be any bigger,

0:25:360:25:39

with the neighbours having added a two-storey extension themselves.

0:25:390:25:43

I'm excited already!

0:25:430:25:45

My excitement and my idea were shared by Bobby, a doctor

0:25:460:25:50

and head of several private medical clinics.

0:25:500:25:53

He saw this £107,000 purchase as a chance to let his builder,

0:25:530:25:57

Carl, add value to the house,

0:25:570:25:59

and build a long-term property development sideline.

0:25:590:26:02

We've applied for planning permission, and we're thinking

0:26:060:26:09

if we can convert the two-bedroomed property into a four-,

0:26:090:26:11

because there's some space at the back,

0:26:110:26:13

and other people on the road have done extensions as well,

0:26:130:26:15

so we're quite confident we'd get the planning permission.

0:26:150:26:19

So the hands were prepped for major surgery,

0:26:190:26:21

with a 40 to 50 grand budget, and a timescale of six months.

0:26:210:26:25

One year on, we've come back for a look.

0:26:280:26:30

Well, the front has been re-rendered and painted,

0:26:330:26:35

plus there's some driveway improvement...

0:26:350:26:38

but it's the back of this property that was always going to be

0:26:400:26:43

the benchmark for its success.

0:26:430:26:45

# Something extraordinary, something real... #

0:26:460:26:52

Inside the new two-storey extension is a vastly expanded kitchen,

0:26:540:26:58

with designer marble floor and top-of-the-range units.

0:26:580:27:01

The extension goes out the back, and out the side of the new living area,

0:27:040:27:09

incorporating the old dining room, demonstrating the spaciousness.

0:27:090:27:13

The existing living room has been modernised,

0:27:160:27:19

but there are more changes upstairs.

0:27:190:27:21

The bedrooms have been freshened up, while the bathroom,

0:27:250:27:28

already quite nice, has jumped up a gear.

0:27:280:27:30

# Something extraordinary. #

0:27:320:27:36

Away from the de-cluttered landing runs a corridor to two

0:27:370:27:40

brand-new bedrooms, one with an en-suite.

0:27:400:27:43

What an extraordinary change.

0:27:470:27:49

Surely a first project of this scale really challenged Bobby

0:27:490:27:53

and his team?

0:27:530:27:54

Well, surprisingly, I found that there was very

0:27:540:27:57

little in the way of challenge with this renovation.

0:27:570:28:00

The project has probably taken a little longer than

0:28:000:28:02

we originally anticipated.

0:28:020:28:04

We thought it might take about six months,

0:28:040:28:06

but it took the best part of 12 months,

0:28:060:28:09

and the main reason for that was the fact that we

0:28:090:28:11

applied for planning permission,

0:28:110:28:13

to extend it into a four-bedroomed project, and so we were quite

0:28:130:28:18

prepared for the fact that it might take a couple of extra months.

0:28:180:28:21

So the extension to the property went both back and to the side,

0:28:210:28:25

so that the volume of the internal area was increased.

0:28:250:28:30

It was essentially like a new build.

0:28:300:28:33

So they were quite a bit over their timescale,

0:28:360:28:38

as they worked with planning on this substantial project.

0:28:380:28:42

The standard throughout is very high,

0:28:430:28:45

with materials sourced from builder Carl's native Poland,

0:28:450:28:48

but how much did this high-end finish cost them?

0:28:480:28:51

Originally, we thought that the project might cost us

0:28:540:28:57

around £60,000, and in the end, we spent about £100,000 on it.

0:28:570:29:02

You can see where their 100 grand has gone, with no expense

0:29:060:29:09

spared, but what does he plan to do with the property now?

0:29:090:29:13

I thought that we would get it valued when it was completed,

0:29:150:29:18

which we have done, independently, and given that valuation,

0:29:180:29:23

I'm tempted just to keep it.

0:29:230:29:25

It's not a project that we were looking to turn over

0:29:270:29:30

particularly.

0:29:300:29:31

With the appreciation that's likely to come in the next few years

0:29:310:29:34

in the housing market, I think we could do worse than just to keep it.

0:29:340:29:38

So, Bobby thinks hanging onto this property for a

0:29:390:29:41

while might be the best way forward,

0:29:410:29:44

based on his independent evaluation,

0:29:440:29:46

but will two local estate agents agree?

0:29:460:29:48

I suspect the agent who saw it before the renovation might

0:29:490:29:52

be in for a bit of a surprise.

0:29:520:29:54

It's an amazing transformation.

0:29:560:29:57

I actually had to check whether it was the right property.

0:29:570:30:01

The standard is incredibly high.

0:30:010:30:03

Even the little things, like the chrome plates, sockets,

0:30:030:30:07

and overall, it's a very, very lovely property.

0:30:070:30:11

Standard of the finish of this property is really high,

0:30:110:30:15

and it's really good quality.

0:30:150:30:17

Bobby paid £107,000 for the property at auction,

0:30:190:30:22

and his 100 grand spent, it means a total outlay of 207 grand.

0:30:220:30:28

The agents believe it could command a top rental

0:30:300:30:33

figure of £1,000 per calendar month, giving Bobby just under a 6% yield.

0:30:330:30:39

Not bad, but not amazing.

0:30:390:30:41

So would it be better on the sales market?

0:30:410:30:44

I can believe that this house can

0:30:440:30:47

achieve the sales value of £210,000.

0:30:470:30:52

My feelings are you're looking within

0:30:520:30:54

the region of £250,000 to £260,000.

0:30:540:30:57

Well, they're similar to an independent valuation

0:30:570:31:00

we had done last week, where we were thinking around the 225-250 mark.

0:31:000:31:04

Well, nobody said property prices were a perfect science,

0:31:070:31:10

but that 250-grand evaluation would give Bobby a pre-tax

0:31:100:31:14

profit of 43 grand, but this wasn't just about money for Bobby.

0:31:140:31:20

It was a practice run for his builder,

0:31:200:31:22

Carl, as they move on to bigger and better things.

0:31:220:31:25

On the back of this development,

0:31:290:31:30

we've just now purchased some land with a school on it,

0:31:300:31:35

and we're looking at converting the school into 25 units, which is

0:31:350:31:39

a much bigger project, but this development here has given me

0:31:390:31:43

the stepping board to actually know what development entails,

0:31:430:31:47

and it's given me confidence to be able to do a bigger project.

0:31:470:31:51

For today's final property, I'm visiting Crewe in Cheshire,

0:31:560:31:59

a town built on the massive expansion of the railway

0:31:590:32:03

network in the mid-19th century.

0:32:030:32:05

Nowadays, the local economy is more diverse,

0:32:050:32:08

but engineering still provides significant employment in the area.

0:32:080:32:13

# Trains and boats and planes were passing by... #

0:32:130:32:17

Well, this street is a real classic for houses that reflect the working

0:32:170:32:22

status of the people who would have owned them in previous times.

0:32:220:32:26

From slightly smaller terraces, to the one I'm here to see.

0:32:260:32:30

And very impressive it is, too. £63,000 was the guide price.

0:32:300:32:35

Three bedrooms. Obviously needs a bit of work. Let's have a look.

0:32:350:32:38

Ooh, nice bit of tiling on the entrance porch, there.

0:32:420:32:45

Then an inner door. That's such a good design feature, isn't it?

0:32:450:32:48

Keeps all the noise and the cold out.

0:32:480:32:51

Into your little entrance corridor,

0:32:510:32:53

which has good stairs going up to the bedrooms there, and then through

0:32:530:32:58

to your main living accommodation, which is fairly classic.

0:32:580:33:02

Large reception room to the front.

0:33:020:33:05

Bay windows, which is absolutely gorgeous.

0:33:050:33:07

It's dual-aspect,

0:33:070:33:08

with this very classic sliding door between the two.

0:33:080:33:12

to this rear room here.

0:33:120:33:13

Again, loads of light coming in, lots of space,

0:33:130:33:16

and obviously it's going to be in need of a good old clean

0:33:160:33:20

and a good old sort-out, but I'm liking what I'm seeing.

0:33:200:33:23

And then a very traditional design from there,

0:33:230:33:26

through to your kitchen area.

0:33:260:33:28

The kitchen areas in these properties are always

0:33:280:33:30

a little bit on the small side.

0:33:300:33:32

You know, it could be a little bit bigger, and perhaps

0:33:320:33:34

there's potential to extend a bit into the cupboard there,

0:33:340:33:38

but overall,

0:33:380:33:39

what I'm seeing is a house that just needs upgrading, uplifting, and then

0:33:390:33:46

you've got a really great place.

0:33:460:33:49

I have a real soft spot for these Edwardian terraced houses.

0:33:490:33:53

Plenty of original details have survived,

0:33:530:33:55

which makes wandering around here a real delight.

0:33:550:33:58

So, upstairs, and a good-sized space, as you might have expected.

0:34:010:34:07

Reasonable sized bedroom at the back there, and there's a cute bathroom.

0:34:070:34:11

Look at that.

0:34:110:34:12

Probably one of the earliest kind of electric showers that was ever made.

0:34:120:34:16

Yeah. I think you probably want to have that definitely well

0:34:160:34:19

checked out by somebody electrically qualified, cos I wouldn't

0:34:190:34:21

necessarily want to turn it on and then get in the shower. Bzzk!

0:34:210:34:25

But anyway, nice-sized middle bedroom, original fireplace there,

0:34:250:34:28

which is really lovely, and there's just loads of stuff to discover.

0:34:280:34:31

Rip that little bit of hardboard off there.

0:34:310:34:35

I bet there's a really nice banister underneath it.

0:34:350:34:39

And then a real joy as you walk towards the front of the property.

0:34:390:34:41

A nice fireplace in this absolutely gorgeous master bedroom.

0:34:410:34:46

You've got the bay window there, erm... Yeah, it's brilliant.

0:34:460:34:50

That isn't too good, though. A bit of a nasty crack.

0:34:500:34:53

Hopefully nothing too serious, so you'd want to investigate that,

0:34:530:34:56

but all in all, it's a really

0:34:560:34:58

well-proportioned lovely, lovely house.

0:34:580:35:01

And all for a guide price of £63,000.

0:35:030:35:08

Spend, oh, let's say 25 grand doing it up,

0:35:080:35:10

and you've still got change out of £100,000. So, that's the inside.

0:35:100:35:15

I'm off to catch a bit of sunshine.

0:35:150:35:17

Well, at the back of the property, nothing untoward.

0:35:190:35:23

Those cracks don't seem to appear on the outside,

0:35:230:35:25

so hopefully just a bit of minor settlement inside.

0:35:250:35:28

The brickwork seems to be in nice condition.

0:35:280:35:30

Obviously, you're looking again at replacing the windows,

0:35:300:35:32

but apart from that, yeah, no, it seems pretty good.

0:35:320:35:35

The roof looks all right.

0:35:350:35:37

As a bonus, you've got this little bit of garden,

0:35:370:35:39

and that all-important access to a little

0:35:390:35:42

sort of roadway at the back there, an alleyway,

0:35:420:35:44

so you could theoretically bring in a car

0:35:440:35:47

and have off-street parking here, which is what some people do, but

0:35:470:35:50

all in all, it's just adding to what is already a really great house.

0:35:500:35:54

And hopefully the agent from the auction house who sold

0:35:550:35:58

the property will agree with me, but first he's going to give us

0:35:580:36:01

some information about the local housing stock.

0:36:010:36:04

There's a variety of terraced properties up and down this road.

0:36:040:36:08

These particular ones had lovely mosaic-tiled halls

0:36:080:36:12

and quarry-tiled floors, and quite decorative coving and ceiling roses,

0:36:120:36:15

so these would have been probably the managers'

0:36:150:36:17

or the supervisors' properties when they were first built.

0:36:170:36:20

Does need a lot of work doing to it.

0:36:200:36:22

Damp course, rewiring, kitchen, bathroom.

0:36:220:36:25

There's quite a bit of money to be spent on the property,

0:36:250:36:28

but it's got a lot of potential.

0:36:280:36:30

And how much could this house be worth, once renovated?

0:36:320:36:36

If the property was fully modernised,

0:36:360:36:37

I'd certainly expect this property to reach in the region of £110,000.

0:36:370:36:41

And rental valuation?

0:36:410:36:43

From a rental point of view, I would say the property would

0:36:430:36:47

achieve around £550 per calendar month.

0:36:470:36:50

Well, the more times I come to Crewe, the more I think there

0:36:530:36:55

really are some very interesting investment opportunities here.

0:36:550:36:59

It's a lot of house for that £63,000 guide price.

0:36:590:37:03

Yeah. Let's see who was lucky to get this when it went under the hammer.

0:37:030:37:07

In fact, on auction day, the guide price was changed to £70,000,

0:37:070:37:11

but the auctioneer started below that.

0:37:110:37:14

What say 65 to start me?

0:37:140:37:17

65 bid, thank you. It's £65,000. £66,000.

0:37:170:37:21

67. 68.

0:37:210:37:24

69. 70.

0:37:240:37:26

It's no surprise that bidding was brisk for this one.

0:37:270:37:30

-We rejoin with the price at £78,000.

-78.

0:37:300:37:35

Shaking his head. Still with you, sir, at £78,000.

0:37:360:37:40

Another 500, anywhere else?

0:37:400:37:41

If not, £78,000 once...

0:37:430:37:46

New bidder, 78 and a half. 79.

0:37:460:37:50

And a half.

0:37:510:37:53

No? At 79 and a half, by the door, at £79,500.

0:37:530:37:58

80, anywhere else?

0:37:580:38:00

80.

0:38:000:38:01

No? At 80, on the wall, to my left, at £80,000. 500, anywhere else?

0:38:020:38:07

If not, £80,000 once...

0:38:080:38:10

..£80,000 twice...

0:38:110:38:13

..third and final time at £80,000...

0:38:130:38:17

You bought it, sir. Well done.

0:38:190:38:21

Sneaking in with that last-minute bid were property developers

0:38:210:38:24

Anthony, here on the right, and Phil.

0:38:240:38:27

We've met them before on the show, as they specialise in developing

0:38:270:38:31

and leasing houses of multiple occupancy, or HMOs.

0:38:310:38:34

Is that the plan for this house?

0:38:340:38:37

I met them back at the property to find out.

0:38:370:38:40

# We're a couple of swells, we stop at the best hotels. #

0:38:400:38:45

Anthony, Phil, good to see you, again!

0:38:450:38:47

-You have been busy, haven't you?

-Yes.

0:38:470:38:50

So tell me why you wanted to buy this house.

0:38:500:38:52

Well, this is a house in an area that we currently operate, you know?

0:38:520:38:56

We have other buy-to-let properties in the area,

0:38:560:38:58

so we're quite familiar with these streets,

0:38:580:39:00

and this one attracted us because it's a large-sized house,

0:39:000:39:05

needs lots of work, which we're quite happy to take on...

0:39:050:39:08

-Yeah, absolutely.

-..and, yeah, it lends itself quite nicely

0:39:080:39:11

to the type of profile, the tenants, that we currently have.

0:39:110:39:15

And tell me what you think about Crewe,

0:39:150:39:16

because I've been really impressed by Crewe as a sort of place, really.

0:39:160:39:20

Yeah, it's growing quite quickly, really.

0:39:200:39:22

A lot of industry is coming to Crewe.

0:39:220:39:24

I think the transport links to the motorways is very good, and some of

0:39:240:39:29

the major employers around here are continuing to expand,

0:39:290:39:33

and we've seen it sort of develop, haven't we?

0:39:330:39:35

Yeah, absolutely, and there's some great properties.

0:39:350:39:38

And the prices are still at a good level within Crewe at the moment.

0:39:380:39:41

-Yeah.

-And, coupled with the tenant demand, it's a good place to invest,

0:39:410:39:45

in that sense.

0:39:450:39:47

On this project, Phil and Anthony are actually

0:39:490:39:52

working on behalf of an investor, who's putting up the capital.

0:39:520:39:55

The guys will manage the property on behalf of the investor

0:39:550:39:57

for a fixed percentage fee, but first they'll have to refurbish it.

0:39:570:40:01

So tell me what you're going to do to this one, then.

0:40:040:40:07

In terms of this one,

0:40:070:40:08

-we're going to create it as a shared house for professional tenants.

-OK.

0:40:080:40:12

-So we'll effectively be creating five bedrooms...

-Oh, wow.

0:40:120:40:15

..which we'll then let on a sort of individual room basis,

0:40:150:40:19

so there'll be a communal kitchen-diner,

0:40:190:40:21

two of the bedrooms upstairs,

0:40:210:40:23

we're going to look to put en suites in, so that they've got more

0:40:230:40:26

self-contained facilities, in that sense,

0:40:260:40:28

-and then this front reception room will be a bedroom as well...

-Right.

0:40:280:40:32

..and we'll also add a corridor in and place another

0:40:320:40:36

bedroom in the sort of second reception room.

0:40:360:40:38

So is there a demand for that kind of accommodation around here?

0:40:380:40:42

There is, yeah, yeah.

0:40:420:40:43

We've got a list of people that are looking for that exact

0:40:430:40:46

type of accommodation.

0:40:460:40:47

They're professional working people,

0:40:470:40:50

sometimes working on a contract basis, sometimes working longer...

0:40:500:40:54

More permanent basis, but the contract staff demand seems

0:40:540:41:00

to be increasing with the likes of some of the local employers.

0:41:000:41:03

Now, splitting it up into rooms like that can be a very profitable

0:41:030:41:06

thing to do in terms of rental projections.

0:41:060:41:08

What kind of numbers are you looking at?

0:41:080:41:11

-Well, these rooms will let somewhere between £350 and £400...

-Each?

-Each.

0:41:110:41:16

-Yeah.

-So you're looking at £2,000 a month, ish?

-Ish, gross, yeah.

0:41:160:41:20

-That's pretty healthy. That's 26 grand a year.

-Yes.

-Right. So what...

0:41:200:41:24

Obviously got costs and things to factor into that,

0:41:240:41:26

but let's start with that as a headline figure.

0:41:260:41:29

So you paid 80 for it.

0:41:290:41:30

What do you think it's going to cost you to do the renovation?

0:41:300:41:33

So we're looking at around £25,000, just because it's basically

0:41:330:41:39

a shell at the moment, so we need new double glazing, central heating.

0:41:390:41:43

We're obviously adding a lot of facilities,

0:41:430:41:45

and we've then got the shared accommodation fire requirements,

0:41:450:41:48

in terms of fire doors, smoke alarms, all those elements.

0:41:480:41:52

-Right.

-So we think probably around £25,000.

0:41:520:41:55

So you'd be in it for 105 or so, 110 if you factor in those bits

0:41:550:41:59

-and pieces...

-That's right.

0:41:590:42:00

..and you're getting, approximately, to make my maths easy,

0:42:000:42:03

-£25,000 a year?

-Yes.

-Yeah.

0:42:030:42:06

-That's a massive yield, isn't it?

-Yes, yes.

-Yeah, works well.

0:42:060:42:10

THEY LAUGH

0:42:100:42:12

20 quid, then? 24 for that?

0:42:120:42:13

-Yeah, yeah.

-We quite like the business.

-Yeah, no kidding!

0:42:130:42:16

# And I've been taking care of business... #

0:42:180:42:20

Impressive figures, but of course, that assumes that they're

0:42:200:42:23

going to get 100% occupancy 100% of the time

0:42:230:42:25

and no unforeseen circumstances.

0:42:250:42:27

'But talking of time, how quickly can they turn this place around?'

0:42:270:42:31

So, you mentioned the budget, what about the timescale?

0:42:310:42:34

I think we're probably looking about two months to turn everything around.

0:42:340:42:37

-Right.

-To get the finished product and actually have tenants then in situ.

0:42:370:42:41

-Brilliant. And then on to the next one, I guess?

-Yes.

-Yes.

0:42:410:42:44

Yeah, we're running a couple at the moment, so, yes, it's a case

0:42:440:42:48

of moving tradesmen and contractors around and keeping things moving.

0:42:480:42:52

-Well, listen, congratulations.

-Thank you.

-Good luck with it.

0:42:520:42:54

-Great, thank you.

-I look forward to seeing how you get on.

0:42:540:42:58

Well, Anthony and Phil certainly seem to have come up with

0:42:580:43:01

a really interesting business idea, don't they?

0:43:010:43:04

How will they go on sorting out this place in Crewe?

0:43:040:43:07

You can find out later in the show.

0:43:070:43:09

Well, when it comes to taking, property projects,

0:43:130:43:17

it can take a lot of energy, patience,

0:43:170:43:19

oh, and most importantly, the ability to bounce back when things go wrong.

0:43:190:43:24

Yes, so we've seen how one of our buyers got on,

0:43:240:43:26

what about the others?

0:43:260:43:27

Yes, stick around and you will find out.

0:43:270:43:31

Back to the south coast we go and the city of Portsmouth.

0:43:310:43:34

It was this top-floor two-bedroom flat that I was here to see,

0:43:340:43:37

and after a lung-bursting climb up the stairs,

0:43:370:43:41

I was pleasantly surprised by what I found.

0:43:410:43:44

The flat is in really good condition.

0:43:440:43:47

Not what I was expecting at all.

0:43:470:43:48

It's got a great feel to the place.

0:43:480:43:51

You can even see the Isle of Wight out there.

0:43:510:43:53

But no top-floor abode would be complete without something

0:43:550:43:59

to worry about.

0:43:590:44:00

Now, it's obvious there's been some rainwater coming in,

0:44:000:44:04

maybe a few of the tiles are loose, but whoever is looking at

0:44:040:44:07

buying a property like this should investigate that further.

0:44:070:44:11

And being a communal property, any external work would need to

0:44:120:44:15

be estimated, priced and tended, and then the cost split eight ways,

0:44:150:44:20

a process that was a potential concern to new owner, Faye.

0:44:200:44:25

So are you ready for a bit of a wrangle?

0:44:250:44:27

Because something like that doesn't happen overnight,

0:44:270:44:29

it doesn't come easy, you try to get money out of eight people

0:44:290:44:32

-not everybody has available for months.

-No, no.

0:44:320:44:34

Well, it's down to them to do that, down to the managing company to do that.

0:44:340:44:38

I've already had a few phone conversations with them

0:44:380:44:40

to say, "Look, this needs to be sorted,"

0:44:400:44:43

because obviously, it's getting worse with every shower that we have.

0:44:430:44:46

Bought jointly with her husband for £101,000,

0:44:470:44:51

Faye planned to renovate the flat

0:44:510:44:53

then either sell or lease to corporate clients.

0:44:530:44:56

With a budget of £10,000,

0:44:560:44:58

plus a contingency of five grand for the roof, Faye set herself a

0:44:580:45:03

timescale of 3-6 months to complete the work,

0:45:030:45:06

barring any unexpected delays.

0:45:060:45:09

Well, unfortunately, delays there has been, but finally,

0:45:090:45:13

a year and eight months later, we're back to see the finished results.

0:45:130:45:18

Things are looking pretty smart up here,

0:45:270:45:29

but the dazzling kitchen takes pride of place.

0:45:290:45:32

Here in the kitchen, we've done new flooring, complete new flooring,

0:45:330:45:37

new floorboards, made that solid, so we've put the tiles down.

0:45:370:45:40

We've put a brand-new kitchen in here,

0:45:400:45:42

including built-in appliances, rejigging it slightly from

0:45:420:45:46

the old kitchen that was here to create more cupboard space.

0:45:460:45:48

I love the quality of the kitchen

0:45:480:45:50

and I especially love the slow-close.

0:45:500:45:53

Slow-closing drawers could be a metaphor for this project.

0:45:540:45:57

Things progressed at a glacial pace.

0:45:570:46:00

Faye was keen to have everything complete within six months,

0:46:000:46:03

but it's taken an additional 14 months to get to this point.

0:46:030:46:07

And the delay is all down to something called Section 20.

0:46:100:46:15

The Section 20 is something that the freeholders are in charge of.

0:46:150:46:18

As a leaseholder, you don't really have any control over it.

0:46:180:46:23

It's things that relate to works on the building itself,

0:46:230:46:26

the external building.

0:46:260:46:28

And with needing things like the roof and the tiling

0:46:280:46:31

and everything like that doing, it's going to be a roofer involved,

0:46:310:46:34

but also guttering needs doing, external timber works,

0:46:340:46:38

there's the odd tiles that need doing.

0:46:380:46:40

And because we're quite high up, a load of scaffolding needs to go up,

0:46:400:46:43

so there's quite a lot of planning and expense to it.

0:46:430:46:47

With uncertainty over just what kind of work was going to take place

0:46:470:46:51

on the roof, Faye sensibly postponed the refurbishment until she received

0:46:510:46:55

word from building's management that it was safe to proceed.

0:46:550:46:58

After all, there's no point in plastering ceilings twice.

0:46:580:47:02

Ironically, it turns out that the leak in the bathroom

0:47:020:47:05

had nothing to do with the roof.

0:47:050:47:07

OK, so here in the bathroom we've kept what

0:47:090:47:12

we can in terms of tiling and stuff. We've changed the bath.

0:47:120:47:15

New radiator.

0:47:150:47:17

We fixed the leak in the ceiling,

0:47:170:47:19

which just turned out to be the vent pipe for the toilet.

0:47:190:47:23

Put new pipework up there and that's all dry,

0:47:230:47:25

that's all rectified now and I wish we'd done that a lot, lot sooner,

0:47:250:47:28

because it really was very simple to fix.

0:47:280:47:31

'Faye used professional tradespeople for the big jobs,

0:47:310:47:35

'but then listed the family to help decorate.'

0:47:350:47:37

My mum has been amazing.

0:47:390:47:41

We've had some really long nights, we got loads done.

0:47:410:47:44

And my sister's just been fantastic, too.

0:47:440:47:46

She's really helped, done a lot of the ceiling work,

0:47:460:47:49

so her shoulders are probably aching!

0:47:490:47:51

SHE LAUGHS

0:47:510:47:53

Has all that free labour helped Faye's budget of £15,000?

0:47:530:47:57

It's come out at £14,990, so we've gone over on the refurb,

0:47:570:48:03

the Section 20 was under, but, yes, so pretty much used it all.

0:48:030:48:08

When we first met, Faye thought she might sell,

0:48:080:48:11

but seemed keener on renting to corporate clients.

0:48:110:48:14

So what has she finally decided to do?

0:48:140:48:17

My husband and I, in discussing what we're going to do

0:48:170:48:20

with the property, sort of established

0:48:200:48:22

we weren't going to do the corporate lets

0:48:220:48:25

and we're definitely going to go down the sale route.

0:48:250:48:28

And that's what I plan to do now.

0:48:280:48:31

But now the carpets are down, it look so lovely! I don't know.

0:48:310:48:34

I think I might want to keep it!

0:48:340:48:36

It's been a long time in the making,

0:48:370:48:39

but Faye is thrilled with how her project has turned out.

0:48:390:48:43

Will two Portsmouth estate agents be equally enamoured with her work?

0:48:430:48:47

First impressions, it's really fresh, clean,

0:48:470:48:50

it's been finished to a good standard. The only concern I'd

0:48:500:48:53

have would be the single glazing at the front of the property.

0:48:530:48:56

Maybe a little bit noisy on the bedrooms.

0:48:560:48:58

However, I don't think that's going to stop anyone buying this property.

0:48:580:49:01

Property's been done to a very high standard, kitchen is good quality,

0:49:010:49:04

it'd be perfect for the rental market or first-time buyer market.

0:49:040:49:07

Well, they both think this property is a winner.

0:49:090:49:11

But will that be reflected in their valuations?

0:49:110:49:14

Let's start with rental values.

0:49:140:49:17

I think the lowest amount that you should be

0:49:170:49:19

looking for is £675 per calendar month.

0:49:190:49:23

As the sort of highest mark, you could be trying £725 per calendar month.

0:49:230:49:27

For the current owner, should they put this on the rental market,

0:49:270:49:30

she'd be asking for around £795 per calendar month.

0:49:300:49:34

Those rental figures are good, especially the higher one.

0:49:340:49:38

And it's sort of the figure we were looking to, my husband and I, round about the 750 mark.

0:49:380:49:43

But, unfortunately, that's not something we really want to do. But good to know.

0:49:430:49:47

So, as rental is no longer on the agenda,

0:49:470:49:50

what about the sales values?

0:49:500:49:52

In current market conditions, I think

0:49:520:49:54

the current owner could be asking for a price in the region of £155,000.

0:49:540:49:58

I think a sensible figure would be £145,000.

0:49:580:50:02

Well, we paid 101,000 at auction and spent just under 15,000,

0:50:020:50:06

including the Section 20.

0:50:060:50:08

So, yeah. Yeah, I'm really, really pleased with that, yeah.

0:50:080:50:12

A sale at £155,000 would leave Faye with

0:50:120:50:15

a profit of £39,000 before any tax and fees.

0:50:150:50:20

So, will she be keen to do this kind of project again?

0:50:200:50:24

Yeah, I'd definitely do it again.

0:50:240:50:26

The fact that Section 20 has taken so long has not put me off at all.

0:50:260:50:30

Because it was always something there in the background,

0:50:300:50:32

ticking over, to fill in my time when the children were at school, so, yeah,

0:50:320:50:36

it's worked out really, really well and I'd definitely do it again.

0:50:360:50:38

Right property, right place, I'd do it again.

0:50:380:50:41

It's time to catch up with what's happening in Crewe,

0:50:440:50:47

where earlier, I took a look around this three-bed Edwardian

0:50:470:50:50

terraced house with a guide price of 63,000.

0:50:500:50:54

Although there was a complete overhaul required,

0:50:540:50:58

the massive rooms and period detail immediately warmed my heart.

0:50:580:51:03

Overall, what I'm seeing is a house that just needs upgrading,

0:51:030:51:08

uplifting and then, you've got a really great place.

0:51:080:51:12

In fact, you could say it was a cracking property.

0:51:140:51:18

But unfortunately, upstairs, it really WAS a cracking property.

0:51:180:51:23

That isn't too good, though. A bit of a nasty crack.

0:51:230:51:26

Hopefully nothing too serious, so you'd want to investigate that.

0:51:260:51:30

Keen to get cracking on this property were Phil,

0:51:310:51:35

here on the left, and Anthony, who paid £80,000 at auction

0:51:350:51:39

and plan to turn it into a HMO, or a House Of Multiple Occupancy.

0:51:390:51:43

So, is there a demand for that kind of accommodation around here?

0:51:430:51:47

There is, yeah, yeah.

0:51:470:51:48

We've got a list of people that are looking for that exact

0:51:480:51:51

type of accommodation.

0:51:510:51:53

And when he did the sums, it wasn't

0:51:530:51:55

hard to notice that splitting this house into individual rented

0:51:550:51:58

rooms could prove to be very lucrative.

0:51:580:52:01

And you're getting approximately, to make my maths easy, £25,000 a year?

0:52:010:52:06

-Yes.

-Yeah.

0:52:060:52:07

That's a massive yield, isn't it?

0:52:070:52:09

-We quite like the business.

-Yeah, no kidding!

0:52:090:52:12

With their eyes firmly set on the HMO prize, we left Phil and Anthony

0:52:140:52:19

to work out how best to configure this house

0:52:190:52:22

with their £25,000 budget.

0:52:220:52:23

They plan to have rooms ready to let out within eight to ten weeks.

0:52:250:52:29

How successful have they been?

0:52:290:52:31

Well, we've come back eight months later to find out.

0:52:310:52:34

Well, I'm sure you'll agree, this is an amazing transformation.

0:52:550:52:59

The guys have kept to the plan of having five bedrooms,

0:52:590:53:02

three upstairs, two of which have en suites and two downstairs.

0:53:020:53:07

There was originally a through lounge diner,

0:53:070:53:10

so we're separated that off to create a bedroom at the front

0:53:100:53:13

and an extra bedroom behind and put a corridor in.

0:53:130:53:16

We've then put a brand-new kitchen in,

0:53:160:53:19

knocked through the back to create a downstairs toilet

0:53:190:53:21

and a laundry room where we've put the boiler.

0:53:210:53:24

Upstairs, we've added two new en suites, new bathroom

0:53:240:53:28

and then really sort of full plaster and decoration all the way through.

0:53:280:53:32

This was a thorough renovation, requiring new central heating,

0:53:340:53:38

total rewiring and new double glazing throughout.

0:53:380:53:41

But Phil and Anthony have also managed to experiment a little

0:53:410:53:45

by adding a few new things along the way.

0:53:450:53:48

The feature walls that we've put into this property in the bedrooms...

0:53:480:53:51

Quite a new thing for us, that, and it seems to have gone well.

0:53:510:53:54

The people that we've shown around initially have liked the rooms

0:53:540:53:57

and a couple of the rooms have been taken already,

0:53:570:54:00

so, so far, that seems to have worked out well.

0:54:000:54:02

I think it's nice to have done en-suites upstairs.

0:54:020:54:05

I think given the size of the house and its five bedroom,

0:54:050:54:08

it's good to get those two en-suites up there.

0:54:080:54:11

We're very proud, I think, aren't we, of this one?

0:54:110:54:13

-Yeah, definitely, yeah.

-And it would be a nice one to have in the mix.

0:54:130:54:17

Yeah, we're just really pleased with the finish of it all and I think

0:54:170:54:20

it's created five very nice rooms for professional people to rent.

0:54:200:54:24

Yeah.

0:54:240:54:25

Those beds look very inviting, but I wonder

0:54:270:54:30

if there was any sleep lost over the worrying cracks upstairs?

0:54:300:54:35

We looked at those, we took the plaster away and to be honest,

0:54:350:54:37

they were just surface cracks, really,

0:54:370:54:39

there wasn't anything structurally wrong with the property, so...

0:54:390:54:42

Movement over the years. And the last time the property had been sold was 1944,

0:54:420:54:46

so there's going to be a little bit of movement in that time,

0:54:460:54:49

but the plasterer has taken everything back to breaking in parts and we've

0:54:490:54:53

reskimmed and things as well, so, it's got a nice finish to it now.

0:54:530:54:57

It's taken 16 weeks to get that nice finish,

0:54:570:55:00

which is double their original estimate.

0:55:000:55:03

That was partly due to a delayed start whilst

0:55:030:55:06

we finished off another project.

0:55:060:55:07

And then really just juggling the works alongside other projects, so...

0:55:070:55:11

Yeah, couple of additional ones, wasn't it?

0:55:110:55:14

Yeah, that's it. So because we had some other projects that we needed to turn round quickly,

0:55:140:55:18

we've just phased this one over a slightly longer timeframe.

0:55:180:55:21

So, how much has all this cost?

0:55:210:55:24

We were originally thinking it would be around 25,000.

0:55:240:55:27

We'll probably closer to 30 by the time it's all finished with

0:55:270:55:30

the furnishings and everything.

0:55:300:55:32

But that's a reflection, really, of the fact that we've done it to a higher standard.

0:55:320:55:37

We've furnished it to a high standard and with the en-suites

0:55:370:55:40

and everything, the extra additions, equally that is reflected

0:55:400:55:44

in the rent that we'll receive from the property, so we're seeing

0:55:440:55:47

that uplift in terms of the rental prices for the rooms as a result.

0:55:470:55:51

Well, if I was giving out prizes for the best-dressed rooms,

0:55:510:55:55

I'm certain Phil and Anthony would have the competition sewn up.

0:55:550:55:59

But in this instance, it's all about the money,

0:56:000:56:03

so we've asked two local property experts to come along and

0:56:030:56:06

marvel at the soft furnishings and give us their professional opinions.

0:56:060:56:10

The changes are really good,

0:56:120:56:13

they've done a really nice job on the property.

0:56:130:56:16

Ideal for what they've done it for, obviously,

0:56:160:56:19

they've turned it into a multiple occupancy building

0:56:190:56:21

and it's a great location for that type of thing as well.

0:56:210:56:24

They've done a nice standard of finish to the property,

0:56:240:56:26

it's nice and light, I like the fact that they've used

0:56:260:56:29

a lot of white, but added a bit of interest with feature walls.

0:56:290:56:33

So far, Phil and Anthony have spent 110,000 on behalf

0:56:330:56:37

of the investor and the plan is to rent the units out.

0:56:370:56:40

But what could the whole building be worth

0:56:400:56:43

if sold in its newly refurbished state?

0:56:430:56:46

If the property was to come onto

0:56:460:56:48

the market as it is, we'd be looking at around £125,000.

0:56:480:56:52

For a resale on this I would expect to sell

0:56:520:56:55

the property for £130,000.

0:56:550:56:59

That could mean a potential pre-tax

0:56:590:57:01

profit of between £15,000 - £20,000 for the investor.

0:57:010:57:05

But of course, this is a long-term rental machine, and both

0:57:050:57:08

agents reckon on a total rental income of around £2,000 per month.

0:57:080:57:14

In terms of a monthly rental,

0:57:140:57:15

-it's around 2,100 gross rent for the property.

-Yeah.

0:57:150:57:19

Of course, that figure's based on full occupancy

0:57:190:57:22

and equates to a monster yield of 23%.

0:57:220:57:25

So, let's get the final thoughts of two very happy property developers.

0:57:250:57:30

This property has been a superb property for us

0:57:310:57:34

in really doing the full refurb and putting our own mark on the property

0:57:340:57:41

as well and creating something quite different to how it began.

0:57:410:57:45

Yeah, and I think we're now left with a high-end HMO

0:57:450:57:48

that will achieve really good rental yields.

0:57:480:57:51

Did today's trials and tribulations inspire you?

0:57:540:57:57

Or were you watching from behind the couch?

0:57:570:57:59

Yes, buying property can sometimes be a little bit scary,

0:57:590:58:02

even a bit of a horror story.

0:58:020:58:04

Oh, but it usually ends up with a happy ending!

0:58:040:58:06

So join us next time for more Homes Under The Hammer.

0:58:060:58:09

-We'll see

-you then. Bye-bye.

-Goodbye.

-Bye.

0:58:090:58:11

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