Episode 35 Homes Under the Hammer


Episode 35

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Transcript


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Hello and welcome to the show. Now, buying a property can be a long,

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drawn-out process, full of delays and complications.

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If you're in a hurry and want to get things moving, why not just pop down

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-to a local property auction?

-Yep. Now, completion is usually 28 days.

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Sometimes it can be sooner.

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So do you want to buy your home under the hammer?

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Now, the stories behind the auction purchases can sometimes be exciting,

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electric and sometimes eccentric.

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Yes. So, what made the people choose the properties they bought

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on today's show and what are they going to do now they've bought them?

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Yeah, let's find out. Here's what's coming up on today's show.

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First up in Maidstone, Kent, I find a nice big bonus.

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Do you know what? For a house of this size, this just isn't

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big enough. So what have they done? They've built this - boom!

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And in Stepney, in London, wait until you see what I've discovered.

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Through here is just such an amazing surprise.

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Come and have a look at this.

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But in Newcastle-under-Lyme, what I find isn't so exciting.

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Get damp checked out, because this place is wet, wet, wet.

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All these properties have been bought at auction.

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

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when they went under the hammer.

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Sold.

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Lying about 30 miles south-east of London is the county town of Maidstone in Kent.

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With a thriving town centre,

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surrounded by glorious Kentish countryside this area is known as

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the Garden of England and for good reason.

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Well, close to the centre of Maidstone in this really lovely

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residential area is the property I'm here to see.

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It's a three-bed semidetached.

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Guide price £240,000 to £250,000

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and judging from the outside, could well be a bit of a find.

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Hopefully I'm not tempting fate here and the inside will be just as

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attractive as the outside.

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So, what's in store behind the door?

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Well, into a little sort of entrance hall here. Stairs up to your

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bedrooms. Quite a narrow little corridor through to the

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rest of the house. I like open spaces, give me the range...

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give me space. I want fields stretching into the distance.

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With a house? What am I on? It doesn't matter. Look,

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into the lounge area, it's a lovely feel here.

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You've got a big bay window there.

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It is dual aspect, which is really good.

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I like the stripped floors.

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Wouldn't have expected that necessarily in a house like this,

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so perhaps that's just because the carpets have been ripped up.

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Through into a little conservatory here.

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Not much of a garden to speak of, to look out on,

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but it's a useful space.

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Although this plastic roof and all that kind of stuff -

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not really ideal and then it all starts to get a bit strange,

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partly because the house is in a state of - what shall we say? Flux.

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I don't know what the cooker is doing there.

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It's obviously part of what was originally the kitchen,

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which is this area here.

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But quite rightly, somebody has decided for a house of this size

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this just isn't big enough. So what have they done?

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They've built this.

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Boom! A big extension.

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Now, obviously it's not been completed, but the work so far looks

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like it's been done to a pretty good standard.

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Look at that RSJ!

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Wow! That is a real big boy.

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It looks like, at first glance, it's been nicely constructed, as I said.

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Work to do to finish it off, but with this, combined with that,

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this is a lot of space. Good house!

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-# I'm special

-Special

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-# So special

-Special

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# I've got to have some of your attention

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# Give it to me. #

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Not only is there room for a kitchen here,

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but there's space for a downstairs cloak room and a study.

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The only proviso is I would recommend getting the structure,

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the plumbings and the electrics checked.

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Don't just assume it's OK.

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Upstairs, there are three bedrooms.

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The master is looking lovely, with a double-glazed bay window

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and I'm just loving the original doors and handles.

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The second bedroom is fine.

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Though that plumbing on the wall may have to go.

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Bedroom number three is really a box room.

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The bathroom has echoes of an Art Deco period about it,

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but I think you'd probably have to replace it.

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Time to take a look outside.

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I am quite intrigued, because when I first saw the house,

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I didn't really realise it had a relatively new extension and that's

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partly down to the fact that they've matched the bricks really,

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really well. And if you are doing an extension on a property,

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it's really worth taking a lot of time trying to find bricks that

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absolutely match the original house.

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Now, they haven't quite done it here.

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If you look at these bricks here, they're very smooth on the surface

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and these ones are kind of a bit more rustic,

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but the colour is perfect. You know what? You need to go down to your builder's merchant,

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take an actual brick from the house and, literally, match it up.

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If you can get a match similar to this, what a difference it makes.

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The house is full of surprises.

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Under the garage is what looks like an inspection pit,

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which might be great if you're a car enthusiast.

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But for a family with kids, it might represent a hazard.

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If you were into cars,

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beside the garage, the drive would also take at least two vehicles.

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I think this house, guided at £240,000 to £250,000

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is a fantastic opportunity.

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We asked a local estate agent along to see if he thought so too.

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The kerb appeal is good.

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It's a very handsome-looking house.

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Sadly, inside it's rather neglected and needs a lot of attention,

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but the potential is wonderful.

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The extension, I think, speaks for itself.

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It's unfinished, anyone can see that.

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So once that's been incorporated into the house and the general style

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that's adopted is modern and fresh,

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I think there's not really a great deal more to do.

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So, the place needs a cosmetic lift and the extension completed.

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Does the agent have a budget in mind?

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I believe, conservatively, £20,000 would just about cover any of the

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variations that the owners might consider.

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Well, property prices in the south and south-east

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are without doubt high.

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However, here in Maidstone, I think what you've got yourself

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is a real good buy.

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For that kind of guide price, £240,000 to £250,000,

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as it is, yeah. A bit of a snip.

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Let's see who spotted it when it went under the hammer.

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Lots of people around this one.

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I would like to start at £240,000, if I may.

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£240,000 to start me.

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Give me £230,000, then.

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£230,000.

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Can I say 230? 230 I have.

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235 now. 235.

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235. 235. I'm obliged. 240 now.

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240. Thank you. 240. 245 now.

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245 at the back of the room.

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250 now, can I say?

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250, you're coming back in.

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245 I have. 250 now.

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255.

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250 I have. 255 now.

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260.

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After a slow start, the property is now past its guide price.

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We return to the auction when the bids are at 306,000.

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£306,000 I have.

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I shall sell for the first time.

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Have a think. 307 in a fresh place.

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308 for either of you?

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307, you saw him bid in the aisle.

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308, can I say? With all that time, it's come in one bid.

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He's going to take it from you.

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308. 309.

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310.

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£309,000.

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The gentleman's bid in the aisle.

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£309,000 for the first time,

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unless I see one more? For the second time.

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£309,000.

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Three, two, one.

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Sold, sir. Thank you very much.

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Fantastic.

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Evelyn and her husband Arjuna looked very chuffed with their

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winning bid of £309,000.

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Unfortunately, Arjuna couldn't make it to meet me,

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so Evelyn teamed up with her sister-in-law Priya to tell me

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about their investment project.

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-Evelyn, Priya, great to meet you both.

-Thank you. Hi.

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-Congratulations.

-Thank you.

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Tell me why you wanted to buy this place?

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Well, it's closer to our place.

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My husband just retired.

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So we thought we can have a little, you know, hobby, like.

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-Keep ourselves occupied.

-Is it something you've done before?

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-No, this is my first time.

-Really?

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Wow. So, Priya, where do you fit into all this?

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-I'm an architect by training.

-Oh, great.

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I retired as a project manager from Manchester City, so here I am,

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helping my brother and sister-in-law to do the design and, you know,

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-get the building on the go.

-Well, that's an ideal combination, isn't it?

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Are you going to be involved in all of the projects from now on?

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-Totally, yeah.

-Yeah.

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Financially as well,

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or are you just being drafted in and paid a huge amount of money?

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-No, they're giving me loads of lovely food.

-Food!

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-Love.

-Lots of love and family affection.

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Who needs money in those instances?

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-Exactly.

-How lucky, though, you've got a sister-in-law that's an architect.

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Yes, when it comes to property development, having a sister-in-law

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who's an architect is as handy as it gets.

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But exactly what do they plan to do to the property?

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-I'll leave it to Priya.

-OK.

-She will go along.

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OK, so the extension, it's just a shell at the moment,

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so we're going to fit a beautiful kitchen and then we're going to

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convert part of the extension into a bedroom/family room.

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-OK.

-With the toilet downstairs and then we're going to redecorate

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right the way through - new carpets, new flooring.

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New light fittings and fixtures.

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-So that's the plan at the moment.

-Wow.

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So, what's the budget for all the work?

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Have you done a bit of a costings on it?

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We have. About £25,000.

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Sounds reasonable.

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That is a healthy budget to do the work and they're hoping to have it

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completed in around 12 weeks, after which they plan to sell.

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So, what's your involvement going to be?

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I will do, helping out Priya and choosing all the tiles and the...

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She's learning, so she's going to do the next project on her own.

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Right. So, this is going to be the first of many, is it?

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I hope so.

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Hope so. You never know.

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-Yes.

-Well, look, congratulations.

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-Thank you.

-Lovely to meet you both and good luck with it all.

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-Thank you very much.

-Thank you, Martin.

-Thanks.

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Well, how lucky is Evelyn having a sister-in-law who will do all she's

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going to do for some food and a bit of love?

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Oh, boy. If only we all had somebody like that.

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How are they going to get on sorting this place out?

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Well, I think it's a great project and they've got the right ideas.

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You can find out how it all turns out later in the show.

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East London's Stepney area is often overlooked as the poor relation to

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surrounding fashionable spots, like Shoreditch, or Bow,

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but cool doesn't come cheap and plenty of buyers are now turning to

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the more affordable Stepney where you certainly get more bang for your buck,

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and there's also that buzzword regeneration

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with more than 800 homes being built

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and more than 1,000 homes to be refurbished.

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So it certainly appears to be an area on the up.

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Well, I'm here to see a three-bed flat.

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Now, it had a guide price of £200,000 plus,

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which by London standards, well,

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it sounds like it could be good value.

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It's not one of the pretty period properties over there. Mm-mm-mm.

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Instead it's over on this side of the road and it's up there.

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Can't have everything, can you?

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OK, well, this side of the street might not be the prettiest,

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but it does seem to get more sunshine.

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# From the dark end of the street

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# From the dark end of the street

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# To the bright side of the road... #

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This ex-council flat has 92 years left on the lease, which is nothing

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to worry about for now.

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The building has been recently refurbished with the

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roof renewed, a new entry-level phone system and a new lift,

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which is good news as we're looking at one of the flats on the fourth floor.

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Though the bad news is that this flat comes with an outstanding bill

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of £3,500 for the work that was carried out.

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Something I do hope any buyer is aware of.

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I'm up here on the fourth floor and before we've even got into the flat,

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I've got to share this with you. Look at the views of Canary Wharf.

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Aren't they absolutely fantastic?

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So straight into the flat.

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Oh, two doors to contend with and the stairs going straight up

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and that's because this is a split-level flat.

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Some space has been stolen from this hallway,

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which I don't like, because it feels rather cramped in here.

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And, hmm, what I think was the kitchen is now being used as a bedroom,

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but I don't think that's working.

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Likewise, your kitchen is now in here.

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Again I don't really think it's a great use of space

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putting the kitchen in here.

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This whole flat is just really dated.

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It needs new decor, new carpets, the laminate is all a bit tatty.

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I mean, it really does need a big load of TLC in this flat,

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but you know, I could get over that, because what's awaiting me

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through here is just such an amazing surprise.

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Come and have a look at this.

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Well, you get Canary Wharf out the front,

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but out the back, you get the Shard and you get the Gherkin. Ta-da!

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# How sweet the view from here... #

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While the view might be great,

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the same can't be said for the layout

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and I do feel the third bedroom is really too small.

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I'd be tempted to move the kitchen back and return it to a two-bedroom

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layout and have a big lounge space

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with that fabulous balcony and its view.

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With its split level, two of the bedrooms are up even higher,

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so views, well, they just keep on coming.

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I'd knock the separate bathroom and toilet into one large room.

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You really need to up your game for the demanding London market.

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It certainly might be worth spending a bit here,

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if the newspapers are to be believed.

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Purpose-built blocks like this can sometimes have a stigma attached to

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them. They're not that attractive and they don't always have the best

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reputation. However, don't turn your nose up at them too quickly, because

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this article in here, well, it tells me that recently the first ex-local authority

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London flat went on the market for more than a million quid!

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OK, so it was along the desirable Fulham Road,

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but it shows that these sort of flats, they're in demand and their

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value is certainly on the up, so the guide price here, well,

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it seems pretty good value, doesn't it?

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A £200,000 guide price in an up and coming market,

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I wouldn't say the sky's the limit,

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but my investor's antenna is certainly twitching.

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# Boy, you know you've got me Cos you're wanted

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# Oh, you're everything I ever wanted

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# Now all I've got's a memory I'm haunted... #

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So how best to move this flat up a notch or two?

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What does the local estate agent think?

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I would suggest converting it back to its original state as a two-bedroom property,

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which would appeal to a lot of prospective buyers.

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If they intend to keep the property and rent it in the long-term,

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I would probably look to make adjustments to try to get a bit more

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room for the kitchen and the third bedroom.

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Of course, all subject to permission from the local authority

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and the freeholder.

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So we seem to agree it would work better as a two-bed flat.

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But losing a bedroom can be costly,

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so what effect would it have on this flat, guided at £200,000 plus?

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As a two-bedroom maisonette, the property should go on the market

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for £350,000 and it would rent for

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between £1,400 and £1,500 per calendar month.

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As a better-laid-out three-bedroom than it currently is, it will go on

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the market to sell for around £380,000 and it would very likely rent somewhere

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between £1,700 and £1,800 per calendar month.

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So as a rental, three is always better than two, but resale may be a balance

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between the cost of rejigging the layout versus the return.

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Well, as it stands, this flat needs a complete refurbishment and the

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layout definitely needs some attention too,

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but those gorgeous views really are the selling feature for me.

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So who was prepared to take it on?

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Let's go to auction and find out.

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Start at 220 on this.

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Going to 220. 220 down here.

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225. 225. 230. 230.

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235. 235.

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Well, after a slow start,

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bidding intensified and we rejoin the auction with the lot now at

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£305,000.

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305. 307.

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309. 311. 313.

0:18:230:18:28

315. 317. 319.

0:18:280:18:34

321. 323.

0:18:340:18:37

321 in the aisle. First time, second time.

0:18:390:18:45

Third and last time, if you're all done.

0:18:450:18:47

Sold, 321.

0:18:470:18:50

And so the hammer fell at 321,000 and the successful bidders were Yuri

0:18:500:18:56

and his daughter Paulina.

0:18:560:18:58

Yuri is a retired banker and daughter Paulina has followed in her

0:18:580:19:02

father's footsteps and also works as a banker in nearby Canary Wharf.

0:19:020:19:07

It was Paulina who joined me back at the flat to tell me more.

0:19:070:19:10

# Just like money in my pocket Baby love

0:19:100:19:15

# Take that to the bank. #

0:19:150:19:17

Paulina, congratulations.

0:19:170:19:18

-Thank you.

-This has got to be one of the best flats with a view

0:19:180:19:22

that I have seen in a long time.

0:19:220:19:24

I hope so.

0:19:240:19:26

-That's what I fell in love with.

-Need I ask why did you want to bid for this?

-The view.

0:19:260:19:31

The location. I rent about five minutes away from here.

0:19:310:19:35

I do have the same view and I love that view and every time I come home

0:19:350:19:39

from work, no matter how stressed I am, no matter how tired I am,

0:19:390:19:42

I just look at the skyline and it goes away.

0:19:420:19:46

Have you bought this so you don't need to rent any more,

0:19:460:19:48

you can move into your own property?

0:19:480:19:51

We bought this actually as an investment project with my father

0:19:510:19:55

and our family friend Dmitri, to rent it out.

0:19:550:20:00

Then perhaps extend the lease on it and look at the market and see if we

0:20:000:20:04

can sell it. I have said to my father, if worst comes to worst,

0:20:040:20:08

if we can't sell it, if we can't rent it, I will come and live in it.

0:20:080:20:11

Which is fantastic.

0:20:110:20:12

You've got the fallback that you can come here and live yourself.

0:20:120:20:15

This is the investor planning.

0:20:150:20:17

-It's plan A, plan B and plan C.

-I love it.

0:20:170:20:20

Yep, there's no doubting Paulina has thought this through carefully and

0:20:200:20:24

living nearby, she'll be able to keep an eye on progress and, most

0:20:240:20:27

importantly, keep a check on the purse strings.

0:20:270:20:31

How much do you think you're going to need to spend on this?

0:20:310:20:34

Well, I have set a hard budget...

0:20:340:20:37

of £20,000.

0:20:370:20:39

Oh! OK, it all depends on what you're going to do here.

0:20:390:20:43

So let's now talk about that.

0:20:430:20:45

Right, so my big idea is to do a living-kitchen and then turn the living room,

0:20:450:20:50

the current living room, into a third bedroom.

0:20:500:20:53

-So this would be the bedroom.

-This would be the bedroom.

0:20:530:20:56

Upstairs we've got one bathroom and one toilet, which are separate,

0:20:560:21:00

and I would like to take a little bit off storage space from

0:21:000:21:05

a bedroom and split these into separate shower rooms,

0:21:050:21:09

so we'd have two toilets with two showers.

0:21:090:21:11

Do you really think you'll be able to stick to your 20 grand budget,

0:21:110:21:14

I mean, realistically?

0:21:140:21:16

-I don't know. Do you?

-I don't think so.

0:21:160:21:18

I think you're going to have to be really, really stringent on what

0:21:180:21:22

you do, but I know you need to create a new kitchen, a new bathroom.

0:21:220:21:25

I actually like to do things on a budget.

0:21:250:21:27

They look good, but...

0:21:270:21:31

I know how to find things that don't cost a fortune.

0:21:310:21:34

You're a financier. Of course you do!

0:21:340:21:37

Being the financier she is,

0:21:370:21:39

Paulina also read the legal pack, so she was well aware of the additional

0:21:390:21:43

£3,500 charge

0:21:430:21:45

and she has factored it into that tight budget of £20,000.

0:21:450:21:50

And she's hoping to get the work done in three to four months' time.

0:21:500:21:53

What part are you all going to play?

0:21:550:21:56

My dad is the coordinator of the project.

0:21:560:21:59

He's done a lot of...

0:21:590:22:02

legal things around the auction.

0:22:020:22:05

He's set up sort of the financing of this.

0:22:050:22:09

Dmitri, our friend, he is...

0:22:090:22:12

being a plumber by profession, he's going to be the technical director.

0:22:120:22:16

So he will sort of...

0:22:160:22:18

-Project manage? Be on site?

-Project manage, he's going to be on site.

0:22:180:22:21

He's going to find

0:22:210:22:23

all the builders to do the right things.

0:22:230:22:25

Myself, I've budgeted, so I've kept an eye

0:22:250:22:31

on the planning and the budget.

0:22:310:22:34

Also I'm taking the creative role in this, so I will

0:22:340:22:38

try my best to do the interior designs, to

0:22:380:22:43

sort of make it look nice.

0:22:430:22:45

Paulina, it's been great talking to you today.

0:22:450:22:47

Good luck with the project and I hope you can stick to that budget.

0:22:470:22:50

-Hope as well. Thank you very much, Lucy.

-Congratulations.

-Thank you.

0:22:500:22:53

So being a banker,

0:22:530:22:55

well, I'm hoping Paulina will be able to keep to that £20,000 budget,

0:22:550:22:59

although this is the first project for her and her team,

0:22:590:23:03

so we'll have to see.

0:23:030:23:05

Join me later on in the programme

0:23:050:23:07

and you can find out how they all get on.

0:23:070:23:09

Coming up - in Stepney, London, it's a pretty unpredictable business.

0:23:110:23:15

The circumstances have changed.

0:23:150:23:17

Something happened that we didn't think would be possible.

0:23:170:23:20

And in Newcastle-under-Lyme, some opinions are best left unsaid.

0:23:220:23:26

We've been a bit snappy, so...

0:23:260:23:28

Time to head back to Maidstone in Kent now,

0:23:350:23:37

where earlier, I looked around this three-bed semidetached property

0:23:370:23:41

that had a guide price of £240,000 to £250,000.

0:23:410:23:46

The property was in a sought-after area of Maidstone, but first impressions

0:23:460:23:51

were that it wasn't realising its potential, until I found this.

0:23:510:23:56

Boom! A big extension.

0:23:570:24:00

Obviously, it's not been completed,

0:24:000:24:02

but the work so far looks like it's been done to a pretty good standard.

0:24:020:24:06

Look at that RSJ.

0:24:060:24:08

Wow. That is a real big boy.

0:24:080:24:11

It looks like, at first glance, it's been nicely constructed, as I said.

0:24:110:24:15

Work to do to finish it off, but with this combined with that,

0:24:150:24:18

this is a lot of space.

0:24:180:24:20

Good house.

0:24:200:24:21

The extension was just a shell, but it had room enough for a bigger kitchen

0:24:210:24:26

as well as an extra bedroom or study and a downstairs cloakroom.

0:24:260:24:30

It had plenty of attention on auction day and sailed past its guide price,

0:24:330:24:37

eventually selling for £309,000,

0:24:370:24:40

almost £60,000 over its guide price.

0:24:400:24:43

Sold, sir. Thank you very much.

0:24:440:24:46

The happy couple who bought it were first time renovators Arjuna and wife Evelyn.

0:24:460:24:52

With Arjuna otherwise engaged,

0:24:520:24:54

it fell to Evelyn and her sister-in-law Priya to reveal their secret weapon.

0:24:540:25:00

I'm an architect by training.

0:25:000:25:02

-Oh, great.

-I retired as a project manager from Manchester City,

0:25:020:25:07

so here I am helping my brother and sister-in-law to do the design

0:25:070:25:13

and get the building on the go.

0:25:130:25:15

With plans to make the most of the extension downstairs,

0:25:150:25:19

Evelyn had given herself a timescale of 12 weeks and a generous budget of

0:25:190:25:23

£25,000 in order to get the property ready for the sales market.

0:25:230:25:27

Well, we've returned just over five months later and I can't wait to see

0:25:300:25:34

what they've achieved.

0:25:340:25:35

Well, I said, "Boom!" earlier.

0:25:490:25:51

That must make this double boom!

0:25:510:25:53

Half the extension has been turned into a modern,

0:25:570:26:00

sleek kitchen that will have the buyers swooning.

0:26:000:26:03

And the other half of the extension?

0:26:060:26:08

Well, have a look for yourself.

0:26:080:26:10

Yes, as planned, this has been turned into an extra bedroom with its own cloakroom.

0:26:150:26:20

Priya is on hand to explain exactly how they did it.

0:26:220:26:25

So we opened up at the entrance hall and formed the fourth bedroom and

0:26:250:26:31

an attached shower room.

0:26:310:26:33

Further down the corridor, we opened up again,

0:26:330:26:36

to create the utility space and flow into a large kitchen,

0:26:360:26:42

that flowed naturally into the garden.

0:26:420:26:44

So there was connection between the inside and the outside.

0:26:440:26:48

Yes, the kitchen leads into the much-improved conservatory.

0:26:480:26:52

And that lovely dual aspect living room has been enhanced by the

0:26:590:27:03

addition of some lovely bifold doors.

0:27:030:27:05

Upstairs, the layout has remained the same.

0:27:110:27:13

With the existing three bedrooms neutrally decorated to a very high standard.

0:27:200:27:26

The bathroom has remained the same size,

0:27:310:27:34

but it's looking a lot more modern.

0:27:340:27:36

They have also gone the extra mile by improving the exterior

0:27:360:27:41

with a lovely new driveway, a new fence,

0:27:410:27:45

a new roof for the garage and yes, the inspection pit is no more.

0:27:450:27:51

So, with the project complete, how has Evelyn found the experience?

0:27:530:27:57

It was interesting and it's kept me going

0:27:580:28:02

and yeah, obviously we had our ups and downs,

0:28:020:28:05

but it was... In the end, it was nice, yeah, it was enjoyable.

0:28:050:28:09

Working with Priya was absolutely brilliant, because she had all the

0:28:090:28:14

knowledge and everything and she was so helpful to me and any problems

0:28:140:28:19

I called her and she gave me advice,

0:28:190:28:22

I have to do this and that...

0:28:220:28:24

Without her I couldn't have done this project.

0:28:240:28:27

Yeah, Priya was brilliant.

0:28:270:28:29

So Evelyn is delighted how things worked out on this project,

0:28:300:28:34

but was Priya?

0:28:340:28:35

My sister-in-law is amazing to work with.

0:28:370:28:39

My brother is more demanding.

0:28:390:28:41

But they had a vision and I had to deliver the vision.

0:28:410:28:46

It is a lot harder working with the family.

0:28:460:28:48

It's not like a client, is it?

0:28:480:28:50

No, but it was wonderful. It was really nice.

0:28:500:28:52

A lot of food.

0:28:520:28:53

Evelyn is an amazing cook, so she gave me wonderful meals.

0:28:530:28:58

Even after we'd been working here all evening,

0:28:580:29:01

she'd go and produce something wonderful.

0:29:010:29:03

With Priya on hand to lend advice and guidance,

0:29:040:29:07

Evelyn oversaw the work here

0:29:070:29:09

and due to some problems finding reliable contractors,

0:29:090:29:12

plus holidays in between, things were delayed.

0:29:120:29:15

But in the end, they did meet their target of 12 weeks once it began.

0:29:150:29:19

So what about the budget of £20,000?

0:29:200:29:23

Well, we underestimated the amount of work that was involved,

0:29:270:29:31

so 25 was nowhere near enough.

0:29:310:29:34

Eventually we ended up spending 60,000.

0:29:340:29:37

Yeah. But I'm pleased with the outcome, you know, yeah.

0:29:370:29:41

Wow. That's over twice their original budget

0:29:430:29:46

and it means that they've invested a total of £369,000 into this property that they hope to sell.

0:29:460:29:52

So will two local estate agents think it's a wise investment?

0:29:550:30:00

We first asked the agent who saw it originally.

0:30:000:30:04

Well, on my second visit,

0:30:040:30:05

the property's transformed.

0:30:050:30:07

It was nothing more than a shell when I first saw it.

0:30:070:30:09

They've done absolutely everything that you could imagine

0:30:090:30:12

to bring the property up to the fantastic spec that it is.

0:30:120:30:15

First impressions of the property,

0:30:150:30:17

it's been finished to a very high standard.

0:30:170:30:19

This space on offer here is very good

0:30:190:30:21

and it will definitely suit a family, for sure.

0:30:210:30:23

Both agents think this house would rent for £1,300 per calendar month,

0:30:230:30:27

giving a yield of just over 4%.

0:30:270:30:29

However, the intention was always to sell,

0:30:290:30:32

so let's hear what this £369,000 investment could be worth.

0:30:320:30:37

On the open market, I predict this property would achieve

0:30:390:30:42

£390,000 to £400,000.

0:30:420:30:44

I believe this property will achieve somewhere between

0:30:440:30:46

£390,000 and £400,000,

0:30:460:30:49

but we could probably stretch the asking price to £415,000.

0:30:490:30:54

Well, if they can achieve that 415,000,

0:30:550:30:58

that would mean a pre-tax profit of 46,000.

0:30:580:31:01

So, Evelyn's first project is complete, and Priya?

0:31:020:31:06

Well, she can't wait for her next culinary payday.

0:31:060:31:09

She's great. She really does make some amazing food.

0:31:110:31:14

If you ever want a fantastic meal, she's the one.

0:31:140:31:19

Oh, dear! Thank you!

0:31:190:31:21

Newcastle-under-Lyme in Staffordshire

0:31:270:31:30

was supposedly named after a new castle bought in the area

0:31:300:31:33

in the 12th century, and the forest of lime trees

0:31:330:31:36

that covered the area in medieval times.

0:31:360:31:39

Today, I'm just outside the town in the village of Wolstanton.

0:31:400:31:43

So, just a short walk away from the centre of Wolstanton,

0:31:450:31:48

which is just at the top of the road there,

0:31:480:31:50

you've got all the amenities you need.

0:31:500:31:52

Restaurants, doctors, pubs, whatever you need.

0:31:520:31:56

And here's our property with off-street parking

0:31:560:31:59

which is a great start.

0:31:590:32:01

It's got three bedrooms, it's a semidetached,

0:32:010:32:03

and it has a guide price of £80,000.

0:32:030:32:06

Let's get inside out of the rain.

0:32:060:32:08

It is damp outside.

0:32:110:32:13

And, as you come in, you can smell a bit of damp as well.

0:32:150:32:18

And there it is. Some bubbling just there.

0:32:180:32:21

More signs of damp.

0:32:210:32:23

Some kind of water leakage coming into the house.

0:32:230:32:25

Very red in this hallway.

0:32:250:32:27

Stairs going up to the bedrooms there.

0:32:270:32:30

A decent sized reception room to the right-hand side there

0:32:300:32:33

with central heating. Across the hallway,

0:32:330:32:35

you've got another second reception room, which is a good size as well.

0:32:350:32:39

More signs of damp in the corner just there.

0:32:390:32:43

And over there.

0:32:430:32:45

The windows don't look too bad.

0:32:450:32:47

And this is not a bad-sized room at all.

0:32:470:32:50

So, you've got two good-sized reception rooms just there.

0:32:500:32:53

OK, let me just take a step back.

0:32:530:32:56

I'm thinking, firstly, could you take this wall out

0:32:560:32:58

to have a nice, big kitchen/family area?

0:32:580:33:02

Or keep it in, and you have a kitchen/dining area

0:33:020:33:05

completely separate.

0:33:050:33:07

This kitchen doesn't actually look too bad from here,

0:33:070:33:10

and you might be able to resurrect most of what's in here.

0:33:100:33:14

It's a good-sized room.

0:33:140:33:16

And, just there, you've got a downstairs toilet,

0:33:160:33:18

again with signs of damp just in the corner as well.

0:33:180:33:22

Not a bad-sized kitchen at all.

0:33:220:33:26

Not a bad downstairs but the damp is concerning me.

0:33:260:33:29

Let's hope there's no more upstairs.

0:33:290:33:31

Well, hope springs eternal, as they say,

0:33:330:33:35

as does the damp, it would seem,

0:33:350:33:38

in this place. Signs aren't good in the bathroom...

0:33:380:33:40

..the first bedroom...

0:33:420:33:44

..and the second bedroom.

0:33:470:33:49

And into bedroom three, and like the other two, it's a decent size,

0:33:520:33:56

but, also like the other two and the bathroom,

0:33:560:34:00

there's even more signs of damp.

0:34:000:34:02

Now, on your to-do list, number one, get damp checked out.

0:34:020:34:08

Cos this place is wet, wet, wet.

0:34:080:34:11

# Yes, I'm walking on water

0:34:110:34:18

# And you know you're by my side... #

0:34:190:34:22

I did mention it has off-street parking and it's a large piece of

0:34:250:34:29

off-street parking as well.

0:34:290:34:30

Comes all the way to the back of the house and when you get round

0:34:300:34:33

the corner, you've got even more garden space.

0:34:330:34:36

But the first thing I would do is get rid of that shed there,

0:34:360:34:39

which looks like it's seen better days.

0:34:390:34:42

I also thought could you extend out the back as well

0:34:420:34:45

cos there's enough space to do so.

0:34:450:34:47

But, as I look around,

0:34:470:34:49

I can see that houses nearby haven't done that

0:34:490:34:52

so it's probably a waste of money.

0:34:520:34:53

On a safety issue, I'd put a fence just at the end of the house there,

0:34:530:34:58

just so you've got a separate garden and driveway.

0:34:580:35:01

Just keep it safe for young children and pets.

0:35:010:35:04

All in all, it's a good space out here.

0:35:040:35:06

We asked a local estate agent what his advice would be.

0:35:080:35:11

The first thing I would do is recommend

0:35:130:35:15

that a damp specialist comes out and inspects the property...

0:35:150:35:18

..in order to ascertain how much damp there is.

0:35:190:35:23

And then we would be looking at replastering and skimming the walls.

0:35:240:35:29

Once that's done and renovated,

0:35:290:35:31

what would the property command on the open market?

0:35:310:35:34

Once renovated, I would expect the property to achieve

0:35:340:35:38

in the region of £135,000 to £140,000.

0:35:380:35:44

Not a bad price, bearing in mind the guide of £80,000.

0:35:440:35:47

So, what about the rentals?

0:35:470:35:49

I would put the property onto the rental market

0:35:490:35:52

at £600 per calendar month.

0:35:520:35:54

Let's get these wellies off.

0:35:560:35:57

I wasn't joking. Seriously damp in there.

0:35:580:36:01

This is a good-sized house, well-proportioned,

0:36:020:36:05

with loads of potential,

0:36:050:36:07

but, on a serious note,

0:36:070:36:09

you would have to get that damp sorted out ASAP.

0:36:090:36:12

Let's see who splashed out on it when it went under the hammer.

0:36:120:36:15

We now move to lot 14. Ladies and gentlemen,

0:36:150:36:18

a three-bed semidetached house and it's guiding at 80,000.

0:36:180:36:22

Who's here at 80?

0:36:220:36:24

Thank you. 82 anywhere?

0:36:240:36:26

82.

0:36:260:36:28

What are you doing? You were getting your jacket on!

0:36:290:36:32

That's a dangerous thing to do at an auction, isn't it?

0:36:320:36:34

There we go. That big arm in the air as he stretched

0:36:360:36:38

nearly won you a nice house in Wolstanton! So...

0:36:380:36:41

Meanwhile the bid is with the lady at the front at 80.

0:36:410:36:44

82 anywhere else?

0:36:440:36:46

Nearly a costly misunderstanding there.

0:36:460:36:49

We rejoin the bidding at £103,000.

0:36:490:36:52

103 is bid. 104? 105.

0:36:520:36:54

Six? Seven?

0:36:540:36:56

No. All right the bid's 106.

0:36:560:36:58

All the action right at the front of the room for now.

0:36:580:37:00

I'm looking round the rest of the room now for £107,000.

0:37:000:37:04

If not, with the lady right at the very front in row one at £106,000.

0:37:040:37:08

For the first time. I'm taking half if you're quick, sir.

0:37:080:37:10

Second time at £106,000.

0:37:100:37:12

I'll only give you another 500. Both say no.

0:37:120:37:14

Third and final time. Anybody else?

0:37:140:37:16

Are we all done at £106,000?

0:37:160:37:19

Well done, it's yours at 106.

0:37:200:37:22

And if you recognise the top bidder,

0:37:230:37:25

it's because Donna-Marie's been on the show several times before,

0:37:250:37:29

including back in August 2014,

0:37:290:37:32

when she bought this three-bed terrace in Tunstall in Stoke

0:37:320:37:36

with the help of her mum, dad and partner Stephen.

0:37:360:37:39

This time, Donna-Marie is aiming to make some profit on her £106,000

0:37:410:37:46

purchase in order to finance her new business -

0:37:460:37:49

developing properties for clients.

0:37:490:37:51

I met up with her to find out a little bit more.

0:37:510:37:54

-Donna-Marie, nice to see you again.

-Nice to see you again, too, Dion.

0:37:540:37:57

Congratulations again on another purchase.

0:37:570:38:00

-Thank you.

-What was it about this particular property that you liked?

0:38:000:38:03

I was buying one to flip so, put simply, it was maybe not the worst,

0:38:030:38:07

but one of the worst houses in one of the best streets.

0:38:070:38:10

What are you going to do to this property?

0:38:100:38:12

Right, it just needs to be brought right up to date, really.

0:38:120:38:15

So there's quite a lot of internal damp issues

0:38:150:38:18

that need to be resolved. And, following those,

0:38:180:38:21

there will be plasterwork and replacement woodwork.

0:38:210:38:24

And I'm planning to keep the existing bathroom

0:38:240:38:26

but enhance that slightly.

0:38:260:38:28

The kitchen in here will be removed and hopefully reused,

0:38:280:38:31

but upgraded with better worktops,

0:38:310:38:34

coving, hopefully under-cupboard lighting,

0:38:340:38:37

that kind of thing.

0:38:370:38:38

-Pretty.

-Just to bring it back to being a nice, saleable family home.

0:38:380:38:42

-There's a lot of damp.

-There's a lot of mould

0:38:420:38:45

and what looks like there's been a moisture issue.

0:38:450:38:48

Within recent years, the outside of the property has been re-rendered.

0:38:480:38:51

-OK.

-So we could easily chip it all back, re-plaster,

0:38:510:38:54

make good and walk away.

0:38:540:38:55

But, as I'm looking to sell this on, and wanting to...

0:38:550:38:58

It's not that much more to get the damp work done.

0:38:580:39:01

-OK, yeah, yeah.

-So I'm going to get that done while

0:39:010:39:03

the work's being sorted. And it looks like I'm probably

0:39:030:39:05

going to have to pay for scaffolding to go up, so I might as well

0:39:050:39:08

get it all done and sound so that once somebody puts an offer in,

0:39:080:39:11

they've put an offer in, it's a sound proposition.

0:39:110:39:13

And there's not going to be any issues

0:39:130:39:15

when we come to survey or anything, because we've got everything

0:39:150:39:18

in place and guaranteed, etc.

0:39:180:39:19

Donna-Marie is really on the ball.

0:39:190:39:22

So, what's the budget?

0:39:220:39:24

-The least it's going to cost me is 11,000.

-OK.

0:39:240:39:26

-The most it should cost me is 16,000.

-Is that because

0:39:260:39:29

you've done your... You've done all your figures already?

0:39:290:39:31

Yeah, I mean, I had a damp survey

0:39:310:39:33

done on the property before I bought it.

0:39:330:39:35

-Oh, OK.

-So I was relatively confident, you know,

0:39:350:39:37

-I wanted to get this one.

-Quite a few things that need to be done.

0:39:370:39:40

-Yeah.

-How long will it take you to do all the work?

0:39:400:39:42

Unfortunately, because of the particular damp person

0:39:420:39:45

that I've decided to go with,

0:39:450:39:46

being so good and reputable, they're pretty booked up.

0:39:460:39:50

So even though I got him in before I'd even bought the house,

0:39:500:39:52

we've got to wait two weeks from now before that can get done.

0:39:520:39:55

-So it might take, you know, eight to ten weeks.

-OK.

0:39:550:39:57

But I just want to kind of get in here,

0:39:570:40:00

do a reasonably good job to bring it to a habitable state again,

0:40:000:40:03

so that somebody can buy it. There's still money in it for them,

0:40:030:40:06

they've still got room to make their own mark.

0:40:060:40:09

You know, make my small little bit of profit,

0:40:090:40:11

and move it onto the next people, really.

0:40:110:40:13

-Talking about the profits...

-Yeah.

-You got it for 106,000?

0:40:130:40:16

-That's right, yeah.

-Correct? What are you hoping to get back off this?

0:40:160:40:19

You're going to spend 16 maximum?

0:40:190:40:22

-Yeah.

-That will take you to 120,000.

0:40:220:40:24

Yeah, I want to get at least ten to 15 grand out of it,

0:40:240:40:26

-otherwise I won't sell it.

-And if you don't get what you want,

0:40:260:40:29

-you'll...?

-Rather than rent it,

0:40:290:40:31

if we do spend that bit extra to bring the spec up...

0:40:310:40:34

-You're hoping!

-..me and my partner might move in here

0:40:340:40:37

if we can't make the money on it.

0:40:370:40:39

And live here for a short period of time,

0:40:390:40:41

until the market allows for us to make the profit on it.

0:40:410:40:44

Cos renting it, obviously, people don't look after their, you know,

0:40:440:40:47

rental home perhaps as well as they might if it was their own.

0:40:470:40:50

Of course, yeah. Is there anything else in the building

0:40:500:40:52

that you've seen that has surprised you, or frightened you,

0:40:520:40:55

-or you've thought, "Oh, I didn't realise that was there," or...

-Um...

0:40:550:40:58

Not yet. Not yet.

0:40:580:41:01

A few things have cost a bit more than I originally thought,

0:41:010:41:04

but then the value is a little bit stronger than I originally thought

0:41:040:41:07

-as well, so it's counterbalanced them.

-Listen,

0:41:070:41:09

-you've never failed as yet.

-Not yet.

0:41:090:41:11

-And we can't wait to see the end result.

-Thank you.

0:41:110:41:13

Good luck to you, Donna-Marie.

0:41:130:41:14

-Cheers, thanks, Dion.

-Good luck to you.

0:41:140:41:16

So, eight to ten weeks might be a long turn around for Donna-Marie,

0:41:160:41:20

but I think that's still going to be a little bit tight considering

0:41:200:41:23

all that damp that needs to be sorted out.

0:41:230:41:25

But you can find out how she gets on later in the programme.

0:41:250:41:28

Well, making renovation decisions can be tricky.

0:41:320:41:35

Do you go for the best finish ever but risk overspending

0:41:350:41:38

on fixture and fittings?

0:41:380:41:39

Yeah, or do you go for the bargain basement approach and perhaps

0:41:390:41:42

not achieve the best price possible?

0:41:420:41:44

So far, we've seen how one set of buyers dealt with this dilemma.

0:41:440:41:48

But what about the other two? Let's find out.

0:41:480:41:50

Back to East London now and the area of Stepney.

0:41:530:41:57

It was here that I looked around a three-bedroom maisonette

0:41:570:42:00

on the fourth floor of this ex-council block,

0:42:000:42:02

which had a very attractive guide price of £200,000.

0:42:020:42:06

Despite having great views of the city from the front and back,

0:42:090:42:13

the view of the interior... Well, it was less of an attraction.

0:42:130:42:17

And this whole flat is just really dated.

0:42:200:42:23

It needs new decor, new carpets, the laminate's all a bit tatty.

0:42:230:42:28

I mean, it really does need a big load of TLC in this flat.

0:42:280:42:31

The property was crying out to be reconfigured.

0:42:330:42:36

So, it fell to the buyers on auction day to fight it out.

0:42:360:42:40

Sold, 321.

0:42:400:42:42

The successful bidders, with £321,000,

0:42:420:42:46

£121,000 over that guide price,

0:42:460:42:50

were retired banker Yuri and his daughter, Paulina,

0:42:500:42:53

who herself is a banker.

0:42:530:42:55

Being a banker, she had a firm idea on the budget.

0:42:590:43:02

I have set a hard budget

0:43:020:43:04

of £20,000.

0:43:040:43:08

Do you really think you'll be able to stick to your 20,000 budget?

0:43:080:43:11

I mean, realistically?

0:43:110:43:13

-I don't know, do you?

-Do you know what?

0:43:130:43:15

-No.

-No.

-I don't think so.

0:43:150:43:17

Yep, I certainly had my doubts.

0:43:180:43:20

After all, Paulina and her father, Yuri,

0:43:200:43:22

were first-time developers and had big plans for this property,

0:43:220:43:26

which included turning the living room into a bedroom

0:43:260:43:29

and turning the current bathroom configuration

0:43:290:43:31

into two shower rooms upstairs.

0:43:310:43:34

Plus, there was a sting in the tail in the form of a hefty £3,500

0:43:340:43:39

maintenance bill that Paulina would have to factor in

0:43:390:43:42

to her already tight budget. Thankfully,

0:43:420:43:46

she had a secret weapon in the form of her business partner and plumber

0:43:460:43:50

Dmitri, who would oversee the work

0:43:500:43:52

which they had hoped would take three or four months. After then,

0:43:520:43:56

they plan to rent the property with an eye on selling in the future.

0:43:560:44:00

So, here we are six months later.

0:44:020:44:05

And I can't wait to see what they've done.

0:44:050:44:08

Wow! Unrecognisable.

0:44:190:44:22

From cramped and dated to bright and contemporary.

0:44:220:44:26

This living area is stunning.

0:44:260:44:28

I love it.

0:44:280:44:30

Paulina is here to tell us how this was achieved.

0:44:300:44:33

So we have taken down a wall which was separating the kitchen

0:44:350:44:38

and the living space from a tiny little bedroom in the back.

0:44:380:44:42

We have opened up the entire space.

0:44:420:44:46

We have put in a new kitchen.

0:44:460:44:49

We opened up the staircase...

0:44:490:44:52

to bring in more light.

0:44:520:44:54

And put in a new window to maximise the view.

0:44:540:44:58

The upstairs is just as impressive, with two lovely, bright bedrooms.

0:45:000:45:04

As Paulina planned, they've rejigged that split bathroom and toilet,

0:45:170:45:20

and used some cupboard space to create a shower, and with a loo

0:45:200:45:24

and a bathroom.

0:45:240:45:26

They really have transformed this property.

0:45:290:45:32

And doing away with that third bedroom was,

0:45:320:45:34

in my opinion, a masterstroke.

0:45:340:45:36

So, originally we were meant to have three bedrooms.

0:45:390:45:42

We wanted to do it as a...

0:45:420:45:44

..to maximise the rent yields.

0:45:450:45:48

The circumstances have changed.

0:45:480:45:50

We... Something happened that we didn't think would be possible.

0:45:500:45:53

My husband and I, we bought a house in London.

0:45:530:45:57

And while we're renovating the house,

0:45:570:45:59

we decided that we will live here.

0:45:590:46:01

So we went back to the original layout of the flat,

0:46:010:46:05

having two bedrooms upstairs,

0:46:050:46:07

so we would enjoy the nice living room downstairs.

0:46:070:46:11

So, Paulina's moving in,

0:46:110:46:13

but what about business partners Yuri and Dmitri,

0:46:130:46:16

and their investments?

0:46:160:46:19

I own a part of the apartment, so on that part I'm not going to pay rent.

0:46:190:46:24

And, with my father, I'm going to strike a favourable deal.

0:46:240:46:29

And with Dmitri, I think we'll reach an agreement.

0:46:300:46:34

Excellent. And, after all, this is a temporary arrangement.

0:46:340:46:38

They'll be renting and possibly selling in the future.

0:46:380:46:42

So, with this 99% complete, how is Paulina's budget looking?

0:46:420:46:46

My original budget was 20,000.

0:46:490:46:52

My father, being more realistic, said 25,000.

0:46:520:46:55

And I think he was right.

0:46:550:46:57

We spent closer to 25.

0:46:570:46:59

We didn't want to compromise on quality.

0:46:590:47:02

So I think we spent a little more to bring this place to life.

0:47:020:47:08

Well, I'm impressed with what she's managed to achieve for the budget.

0:47:080:47:11

How about the timescale?

0:47:110:47:13

In terms of timescale, we initially planned three months.

0:47:130:47:17

It took...

0:47:180:47:20

quite considerably longer, so, closer to five months to finish.

0:47:200:47:24

Just because we started

0:47:240:47:26

before the holiday season.

0:47:260:47:28

And then we were taking some time to decide what to do with the place.

0:47:280:47:33

And, so, the first two months were a little bit idle.

0:47:330:47:36

So, Paulina and partners have invested a total of around 346,000.

0:47:370:47:42

But will two local estate agents think it's a wise investment?

0:47:420:47:46

Let's start with the agent who saw it originally.

0:47:460:47:49

I think the owner of the property has definitely gone the right route.

0:47:510:47:56

Reverting it back to a two-bedroom.

0:47:560:47:58

Increasing its volume by having it open-plan

0:47:580:48:01

brings a lot of natural light into the property.

0:48:010:48:05

It shows off the best aspects of the property,

0:48:050:48:07

which are, of course, the views.

0:48:070:48:09

Overall, the flat looks very nice.

0:48:090:48:12

I like the extra shower room.

0:48:120:48:15

The separate bathroom as well.

0:48:150:48:17

And, yes, I like... I'm very impressed with the flat.

0:48:170:48:20

So, the agents are onboard.

0:48:200:48:22

Time to hear valuations.

0:48:220:48:24

Rental first.

0:48:240:48:25

If we would rent this property, in its present condition,

0:48:250:48:29

we would then put it on the market for a price between

0:48:290:48:32

£1,500 per calendar month

0:48:320:48:34

up to £1,600 per calendar month.

0:48:340:48:36

I think, based on the improvements they've done to the property,

0:48:360:48:39

they should be looking at least £1,500 to £1,600

0:48:390:48:43

per calendar month in rental.

0:48:430:48:46

It's a little bit on the lower side of what I expected.

0:48:460:48:50

So, a little disappointment with that 5.5% yield.

0:48:500:48:54

But with the £346,000 invested,

0:48:540:48:57

perhaps the resale valuation will impress more.

0:48:570:49:00

If we were to put the property on the market to sell,

0:49:000:49:03

I would suggest an asking price of £375,000.

0:49:030:49:08

I would suggest marketing this property in the price range between

0:49:080:49:13

£370,000 to £380,000.

0:49:130:49:18

Once again, I think it can be worth more.

0:49:180:49:20

We're not planning on selling it just yet.

0:49:200:49:23

I think a couple of years down the line,

0:49:230:49:25

we can extend the lease and get that figure to a higher level.

0:49:250:49:31

That top figure of 390,000

0:49:310:49:34

would mean a pre-tax profit of around £44,000.

0:49:340:49:38

So, a successful first project for Paulina and her team,

0:49:380:49:41

although I get the feeling it's going to be a while

0:49:410:49:44

before Paulina is ready to let go of that lovely view.

0:49:440:49:48

Back to the Newcastle-under-Lyme area and the village of Wolstanton.

0:49:550:49:59

It was here that I had a poke around this three-bed semidetached property

0:50:010:50:04

that had a guide price of £80,000.

0:50:040:50:07

Straight away, I was impressed.

0:50:080:50:10

Especially with the off-street parking.

0:50:100:50:13

Unfortunately, inside wasn't as nice.

0:50:130:50:15

HE SNIFFS

0:50:150:50:17

And as you come in, you can smell a bit of damp.

0:50:170:50:19

And there it is. There's some bobbling just there and some more signs of damp.

0:50:190:50:23

Or some kind of water leakage coming into the house.

0:50:230:50:26

I'm beginning to think a big, damp cloud follows me around.

0:50:260:50:29

So here I am saying it again.

0:50:290:50:31

Now, on your to-do list -

0:50:310:50:33

number one, get damp checked out.

0:50:330:50:36

Yeah, the damp was a worry, but the house was well-proportioned,

0:50:380:50:42

in a good area and full of potential.

0:50:420:50:44

This didn't go unnoticed on auction day,

0:50:450:50:48

where the property had plenty of interest.

0:50:480:50:51

Well done, it's yours.

0:50:510:50:52

Nabbing the property for £26,000 over the guide price was seasoned

0:50:540:50:59

landlord and renovator Donna-Marie, who has been on the show before

0:50:590:51:03

and, as ever, was on the ball.

0:51:030:51:05

Yeah, I want to get at least 10 to 15 grand out of it,

0:51:070:51:09

otherwise I won't sell it.

0:51:090:51:11

Donna-Marie doesn't mess about.

0:51:110:51:13

And despite all the damp, as well as the cosmetic issues here,

0:51:130:51:17

she felt a budget of between £11,000 and £16,000

0:51:170:51:20

and a timescale of eight to ten weeks would get the property

0:51:200:51:23

ready for the sales market.

0:51:230:51:25

We're back two and a half months later to see if

0:51:270:51:30

Donna-Marie has managed to turn this place from damp and dull

0:51:300:51:33

to dreamy and desirable.

0:51:330:51:35

Bright, fresh and welcoming.

0:51:490:51:51

Donna-Marie promised a thorough job.

0:51:520:51:55

And so, from top to bottom, the house's damp issue has been sorted.

0:51:550:52:00

All the walls have been stripped back to brick and replastered.

0:52:000:52:03

They've refitted the original kitchen units,

0:52:140:52:16

but given it a face-lift with retiling and lighting added.

0:52:160:52:20

And the downstairs cloakroom has had a makeover, with a new toilet.

0:52:240:52:27

Upstairs, and the three bedrooms have been neutrally decorated

0:52:360:52:39

to a very high standard.

0:52:390:52:41

The bathroom has been cleaned up,

0:52:500:52:52

and a new toilet suite has been added.

0:52:520:52:54

And outside, they've done a little bit extra.

0:52:540:52:57

Yes, Donna has decided to re-landscape the garden,

0:53:020:53:05

as well as improving the drive.

0:53:050:53:06

And very wisely, to protect against damp, they've re-felted the roof,

0:53:100:53:14

and re-tiled where necessary.

0:53:140:53:16

There may have been no restructuring in this property, but Donna,

0:53:180:53:22

with a little help from mum Christine,

0:53:220:53:24

has truly transformed this house.

0:53:240:53:27

Although it's not been all plain sailing.

0:53:270:53:29

So the biggest problem we had with this project

0:53:310:53:34

was keeping to the timescales and being let down by workmen -

0:53:340:53:38

we've got a really reliable workforce,

0:53:380:53:41

but a number of them have been changed through this project -

0:53:410:53:45

and people not doing what they say they'd do,

0:53:450:53:47

within the timescales they said they'd do it in,

0:53:470:53:49

so A can't follow B can't follow C.

0:53:490:53:52

And so that's been the biggest stress and the biggest challenge.

0:53:520:53:54

-You found that frustrating, didn't you, love?

-Yeah, yeah.

0:53:540:53:57

We've had challenges... It's part and parcel of the deal with any

0:53:570:54:00

development, but we just seemed to have had a lot this time.

0:54:000:54:04

Or maybe the fact that I'm pregnant and I've got a little bit

0:54:040:54:06

less patience might have something to do with it, as well.

0:54:060:54:09

She's been a bit snappy, so...

0:54:090:54:11

Apparently.

0:54:130:54:14

# Tell me, baby, baby, baby, what can I do? #

0:54:140:54:19

Congratulations, Donna-Marie. And to you, too, Granny-to-be.

0:54:200:54:24

But best keep your opinions to yourself for, I don't know...

0:54:240:54:28

the next few months seems a safe bet.

0:54:280:54:30

With all that toing and froing with the workforce,

0:54:310:54:34

how has it affected Donna's timescale?

0:54:340:54:36

I think the timescale I originally gave was eight to ten weeks.

0:54:360:54:40

And in actual fact, despite the hiccups that we had,

0:54:400:54:43

I sort of picked things up where I could and managed to pull things

0:54:430:54:47

together with the help of a lot of the new contractors.

0:54:470:54:50

I think we finished in about eight to nine weeks.

0:54:500:54:52

-About nine weeks in total, wasn't it, sweetheart?

-Yes.

0:54:520:54:55

-From keys to ready, complete.

-Yeah.

0:54:550:54:58

Good stuff. But with all the work here,

0:54:580:55:01

as well as the landscaping outside, how is their budget looking?

0:55:010:55:04

OK, so the original budget I gave myself was 11 to 16,

0:55:060:55:09

depending on the roof and various factors.

0:55:090:55:12

And that's excluding obviously legals and finance costs, etc.

0:55:120:55:15

And I'm going to come in at around about the top end of that,

0:55:150:55:18

so between 16,000 and 17,000 when the last bills come in.

0:55:180:55:22

So she's bang on time, bang on the money.

0:55:230:55:25

Clever little thing, really!

0:55:250:55:27

Christine, I think voicing that opinion is allowed.

0:55:300:55:32

And it's one which we are all agreed.

0:55:320:55:34

So if we assume it's going to be closer to 17 grand all-in,

0:55:350:55:40

that means Donna-Marie has invested around 123 grand on this property,

0:55:400:55:45

that she plans to sell on.

0:55:450:55:46

Has it been a wise investment?

0:55:480:55:50

We've asked two local estate agents along to get their opinions,

0:55:530:55:56

starting with the agent who saw it originally.

0:55:560:55:58

The rooms have been replastered.

0:56:010:56:03

It's been re-carpeted. It's in great condition now.

0:56:030:56:07

I think the overall standard of finish has been done very neutral,

0:56:070:56:11

to a good standard, but also

0:56:110:56:12

people can put their own mark on the property when they come in to buy.

0:56:120:56:16

So it ticks a lot of boxes.

0:56:160:56:19

But how would it fare in the rental market?

0:56:190:56:21

To place the property on the rental market, we would look to achieve

0:56:210:56:24

somewhere within the region of £575 per calendar month.

0:56:240:56:27

If we were to let the property,

0:56:270:56:29

I would recommend a figure of £600 per calendar month.

0:56:290:56:33

That top figure of £600 per calendar month would mean a rental yield

0:56:330:56:38

of just under 6%.

0:56:380:56:39

But it's the sales market Donna-Marie really has her sights on.

0:56:390:56:43

And remember, she hoped to make £10-15,000 profit or she wouldn't

0:56:430:56:48

sell, and would even think about moving in herself. So?

0:56:480:56:52

We would be happy to place the property on the market for £135,000.

0:56:520:56:56

Yeah, I would recommend a figure in the region of £140,000.

0:56:560:57:00

Yeah, that's what I originally thought

0:57:000:57:02

when I started doing the project.

0:57:020:57:04

But the other four valuations I've had from other estate agents

0:57:040:57:08

that I know in the area have all said between 150 and 165.

0:57:080:57:12

So it's going on the market at 155 with an aim to achieving 150.

0:57:120:57:17

If I don't achieve that,

0:57:170:57:19

bearing in mind the extra work and care that's been taken,

0:57:190:57:21

I will just put it back...

0:57:210:57:22

I will put it on as part of the rental portfolio.

0:57:220:57:26

Well, if Donna-Marie did sell it for 150 grand,

0:57:260:57:29

that would mean a healthy pre-tax profit of 27 grand.

0:57:290:57:34

And with this one done and dusted,

0:57:340:57:35

Donna-Marie's plans for the future are really rather simple.

0:57:350:57:39

Yeah, baby next. Then another house.

0:57:410:57:43

Or several other houses.

0:57:440:57:46

THEY LAUGH

0:57:460:57:47

Hopefully we've given you a little bit of inspiration,

0:57:500:57:53

especially if you haven't been to a local property auction.

0:57:530:57:55

Yes, perhaps that little nudge you needed to head down to your local auction house.

0:57:550:57:59

But don't worry if you just want to stay curled up on the sofa

0:57:590:58:01

and watch it from the comfort of your own home.

0:58:010:58:04

But make sure you tune into more Homes Under The Hammer.

0:58:040:58:06

-Bye-bye.

-Goodbye.

0:58:060:58:07

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