Episode 7 Homes Under the Hammer


Episode 7

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Transcript


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Hello, and welcome to the show.

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Now, the housing market can be turbulent,

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so sometime's it's difficult to know when to make your move.

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Yes, and you know what, just best not to jump in feet first.

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Take your time and consider your options.

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Yes, and one of those options is to see what's on offer under

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the hammer.

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Well, buying at auction is not a way of procuring property that

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-everyone considers.

-Yes, and it's not as intimidating as you think.

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There's great value and great variety to be had.

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Yes, so let's see what caught the eye of our three

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buyers on the show today.

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In Ripley, Derbyshire this terraced house has some, let's say,

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interesting light features.

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Oh, dear, that's no good. Ha.

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But fortunately things are looking much better in this four-bed

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property in Erdington, Birmingham.

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I think you would get yourself a bargain.

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And we're leaving the best for last with this three bedroom

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mid-terraced house in East Ham, London.

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It really could be the icing on the cake.

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All these properties were bought at auction,

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and we'll find out who got them and how much they paid for them

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when these homes went under the hammer.

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Well, nine miles north east of Derby is Ripley, believe it or not,

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and up for auction was a two-bed mid-terrace,

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guide price £46,000 plus. This is it, bit of garden at the front, sort of.

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Yes, that is definitely what you call a low-maintenance garden.

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But what have we got. Uh, OK, so front sitting room.

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A nice size in here, seems fairly decent condition,

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no nasty horrible damp smells.

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Stairs in the middle, a very classic design for this kind of property.

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And then through into your rear sitting room.

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Again it doesn't seem to be in too bad condition.

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A-ha, he says, speaking too soon. Look down there.

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What's going on there? Some signs of some kind of surface mould.

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Now, that could just be the property has been left unoccupied over

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the winter or whatever,

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and that's the result of it just not being lived in.

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Hopefully, that's the only problem, because it is an internal wall.

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Rising damp is obviously the other possibility there.

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Very classic design though, through there and then into your kitchen.

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Well, you know, it looks like it needs a bit of tender loving care,

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but it's a decent size and the good news is I can't see a bathroom,

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cos I was expecting to see one out from the kitchen there,

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but there isn't one, which is good news.

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Well, it's either there isn't a bathroom, which is unlikely,

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or it's upstairs, which is good.

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Yes, the downstairs bathroom seems to be a continual issue with

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properties around this era.

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So it's a relief to find there isn't one here.

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It's also a relief to see the house is a good size at a very

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reasonable guide price, so let's find that bathroom, shall we?

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# Seek, and you shall find... #

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So, top of the stairs and bedroom to the left.

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Decent size and to the right a really good sized room,

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probably about four metres square, which is fantastic.

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A bit of a cupboard here, ooh, and actually roof access.

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Oh, dear, that's not good.

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Now, whenever you look around properties it is really

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really good practice to try and see into the roof space.

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In this case, you don't need to

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go up there to see light coming through.

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That's not ideal, cos if the light can come through, so can the rain.

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So, obviously some roof repairs required.

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But now, the answer to where the loo is. Yes ,it is upstairs, woohoo.

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Unfortunately, you can only access it through this master bedroom,

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which of course isn't ideal. Now, there are various solutions I guess.

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Putting in some kind of corridor or partition wall to get to it.

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You know what, you're going to lose a lot of space if you did that.

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So, depending I guess on who bought this, depending on their own

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personal circumstances, will dictate what they do.

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If it was just a young couple or whatever, then maybe just

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having the bathroom here off their bedroom wouldn't be an issue.

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MUSIC: One Way Or Another by Blondie

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While it might suit some, it's going to put some buyers off.

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It's nearly always the bathroom that's the let down.

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Wrong access, wrong floor or wrong colour.

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But moving on from toilet troubles.

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So, at the back of the property something good

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and something potentially problematic,

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because through this little gate here we have a kind

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of passageway, which has part of the property over the top of it.

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It is what's known as a flying freehold.

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Now, when talking flying freeholds they're not necessarily

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a problem, although some mortgage lenders don't like them,

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but you really need to know a bit more about the legal status,

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for instance, of this little passageway.

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Who owns it, who's maintaining it etc.

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Does somebody else have the rights to walk up and down here?

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It's all stuff which your solicitor needs to check out

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and then hopefully that won't be an issue.

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So that's the potentially problematic thing,

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the good news is the garden. Look at that.

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Absolutely massive, goes all the way down to those sheds.

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It's long and thin,

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but I reckon if you chop down this privet hedge you'd increase the

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width, and then you've got a really really pleasant little garden.

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trees at the bottom. Brilliant.

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So, a good little house, though not without its troubles.

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We invited along the auctioneer who sold the property to find out

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what it could be worth.

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My first impressions of the property are that it's tired,

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it's down at heel, it wants some fresh life breathing into it.

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Now that's not unexpected, because this is a property where it's

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been owner-occupied for something over 25 years.

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It's very difficult to keep property up-to-date.

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So, you walk in here and you look at it and you think, yes,

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it needs a new kitchen really,

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it probably needs some improvement to the central heating system,

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it probably needs some improvement to the wiring.

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There's traces of rising damp, the decor's a bit dowdy.

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So, it becomes in the end of the day a fairly full

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schedule of renovation.

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There's a bit of work to do here, but once complete,

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what could this house, with a guide price of £46,000, be worth?

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For sale it would have an asking price of around £110,000.

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For rental, £475 a calendar month.

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So, a nice little property in a popular location.

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A few bits and pieces to do to sort it out,

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not least something to do with the roof.

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And also those flying freehold issues, or potential issues.

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Who bought it? Let's find out, when it went under the hammer.

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Lot number 20.

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There is a commission bid on this,

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and I will start the bidding at £52,000 on a commission bid.

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So the bid is with me at £52,000 and it is in the market,

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it's going to go.

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At £52,000. Raise it to 53, somebody.

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52 I've got, 53. 54.

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55. 56. 57. 58.

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59. 60,000.

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61. I've finished.

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At 61,000. 61, 62 somewhere.

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61 is the bid, 62.

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Once the commission bids were out of the way, there was

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some back and forth bidding.

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We returned when bids had reached 67,000.

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67 at the back. 500. Sure?

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£67,000. 500 elsewhere. At 67,000.

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Going once. 500. 68.

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68 5.

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You sure about that?

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£68,500. Second row bid here.

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Once. Twice. Third time.

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GAVEL BANGS

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Sold at £68,500, thank you.

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# Build my baby up build him up... #

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With that successful bid was builder Andy. Although the hammer fell at £68,500,

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after some discussions he got the property at £65,000.

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I met up with him back at the house to see what

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he had in store for the place.

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Andy, great to meet you. Congratulations.

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-Thank you very much.

-Tell me why you wanted to buy this house.

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Just an investment potential, really.

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Right, so is this something you do?

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I do kitchens and bathrooms, that's what I've got as a company.

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Oh, great.

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General property renovations, but this has got good potential.

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You know, it's not in too bad disrepair really.

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And you've obviously done other ones before.

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I've built before, I've bought land a couple of times before,

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and I've built a couple of times, but I've not actually bought.

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I've done loads and loads of renovations for other people,

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complete renovations, but I've not actually done it with my own house.

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So, tell me what you're going to do to it.

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Well a full back to brickwork renovation, to be honest.

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It needs a rewire and it's only got a gravity fed boiler,

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so that's going to have to come out and put a combi in.

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A lot of the walls as you can see is artex,

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so to try and skim over them is going to be a nightmare,

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-so it's probably going to be a chisel back to brickwork.

-Oh, wow.

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All reboarded, new plaster, new door linings, architrave,

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skirting board, doors. New kitchen, new bathroom, everything.

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And the roof's scaffolding's coming on Friday

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and I'm doing the roof next week.

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I was just going to say there are a few issues with the roof.

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It's not actually that bad, it could probably be repaired,

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but for the money I can re-do a new roof, it's just not worth bothering.

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How much is a new roof costing?

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Well, I can do it for not a great deal,

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just over £1,000 for materials.

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Oh, really, well, your expertise obviously.

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This has not got felt underneath it,

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cos obviously the period of the house.

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So, we'll put new felt, new laths, new tiles.

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Probably use concrete rather than slate, and that'll be it watertight. Job done.

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MUSIC: Ain't No Sweat by Major Lance

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He makes it all sound so easy, but I can assure you,

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the renovations on this house will be anything but.

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Fortunately, Andy sounds like the person to do it though,

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and plans to have the work completed in 12 to 14 weeks.

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-What's the budget for what you're planning?

-What, to the pound?

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-Why, are you that precise?

-More or less.

-Are you?

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Well, I've worked it out to about £14,600, I think,

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-with a contingency of about £3,000 on top of that.

-Wow.

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I'm hoping that we can do it for under 15.

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Although Andy's budget for that roof might seem tiny, his skills and

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knowledge mean he is certain of his pricing for any job he undertakes.

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It stacks up. New kitchen, new bathroom, new roof, scaffold.

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You can't do all that for eight, nine thousand.

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You're going to spend a good chunk of money.

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If you're going to do it properly,

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and make a really nice job of it, you've got to spend the money.

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You've got to do it properly.

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We might look at marketing before we actually finish,

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to give a potential buyer a choice of say,

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kitchen units or bathrooms, sanitary ware and what have you.

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But we're not sure yet, we'll decide when we get closer to that day.

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Obviously the bathroom upstairs, bit of an issue with access.

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What are you going to do about that?

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Well, there's nothing you can do with it really.

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I mean, I've seen a few properties where they've put a corridor in.

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The problem with this one is that the window is directly in line

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with where the corridor would go, and I think, to be fair,

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the sort of people that are going to buy this are first-time buyers.

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Perhaps young couples, and because of the budget that they're

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going to be spending, you can't have everything.

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And there are hundreds of thousands of houses with this

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configuration, so I'm not too fussed about that to be fair.

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What about the flying freehold thing that seems to be outside?

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Well, I've read into it

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and it doesn't seem to be any major legal problems.

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It didn't come up in the legal investigations

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that my solicitor did, so I'm not too fussed about that to be fair.

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-Right. Well congratulations, good luck with it.

-Thank you very much.

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-Look forward to seeing how you get on.

-Thank you. Bye.

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Well, I think you can take a tip out of Andy's book

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when it comes to budgeting correctly for property renovations.

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AndI love his idea of actually trying to get

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a purchaser before it's actually finished

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so they can have some input in terms of how it's all done.

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How will he get on? You can find out later in the show.

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I'm in the Midlands.

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Erdington, to be precise, a northern suburb of Birmingham.

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It's home to what may be the most known piece of motorway

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construction in the country.

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Its posh name is Gravely Hill Interchange.

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But most people know it as Spaghetti Junction.

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Opened in 1972, it covers 30 acres, has two

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and a half miles of slip roads, and 599 columns.

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All of which provides you access into Birmingham City Centre,

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and also out into the rest of the country.

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So, four minutes from that junction, far enough away that it's not

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on top of you, but close enough so you can get all around the country.

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Anyway, the property I'm here to see is a four-bed,

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mid-terrace house, with a guide price of £75,000.

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Let's investigate.

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Right. OK.

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Really long hallway to the back of the property.

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Reception room one is of a decent size, with a nice big bay window.

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High ceilings.

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Reception room two is pretty much the same, slightly smaller.

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But they are decent size rooms, lots of floor space,

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and what I do like is that you've got lots to play with here.

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Yes, there's a lot of cosmetic damage, there's a broken

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window as well, but lots of scope, and I've only seen two rooms,.

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But I do want to see what's at the end of that hallway.

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I'm going to take a look.

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Well, the stairs up to the bedrooms, into the kitchen area here,

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which has got a really high ceiling, which is good. It's a decent size.

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It is in a bit of a state, but just take it out,

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start again in here, it'd give you a decent size kitchen.

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Through into here there's more space, goes even further back.

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I would imagine this would have been added on at a later stage.

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Doesn't look too safe in there either.

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There's a lot of work to be done from what I've seen.

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But there's loads of potential, absolutely loads of potential,

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this place is huge.

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What you do have to bear in mind,

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though, is because it's a big area, and looks like there

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are issues in every room, it all adds up to a lot of problems.

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In particular, the room at the far end of downstairs, where the

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toilet and shower are, is in one of the worst conditions I've ever seen.

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MUSIC: High by James Blunt

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On the middle floor, the third bedroom overlooks the back

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garden, and is the smallest of the four.

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Then bedroom two is just past the house bathroom - more of that later.

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It's a good size room and there might be a fireplace to rescue.

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The largest bedroom on this level is at the front of the house

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and is plenty big enough, albeit missing a few floorboards.

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But I'm intrigued to see what's available to utilise on that

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bonus top floor.

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OK, I'm at the top of the house now and there's even more space.

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And its more space than what I was expecting,

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this is a decent sized bedroom. OK, here's the interesting thing.

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At present, this property has a 125-year lease on it.

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But if you can turn this around within 12 months to being

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a residential occupancy again,

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the council will give you the freehold to this very property.

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Now, I think that is a huge incentive.

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Judging the size of this property, I think

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you would get yourself a bargain.

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Back down again one flight to the middle floor,

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and a look at that bathroom, which has an unconventional mix

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and don't match approach to colour scheme.

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Back down again but this time to the exterior,

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where things look generally tired.

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But I wanted a closer look at the ground floor toilet

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and shower extension.

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And it is, as I expected, it isn't in great condition.

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This is the part of the house that's a little bit

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further on from the kitchen.

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I'd be inclined to get rid of that, make it neat and tidy here.

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Maybe put a bit of decking down there as well.

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But the garden itself is of some size,

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it goes all the way back to that wall.

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You can't see at the moment because it's full of debris

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and full of mess, but I do know there's an access point to the back of this garden.

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So you could actually create a bit of off-street parking as well,

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which would be a huge bonus.

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Big back garden, you've got a big property as well.

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I think both have got loads of potential.

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'My opinion is probably not as focused as the local estate

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'agents, especially when it comes to valuations round here.

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'Which is why I called in one for his opinion.'

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Erdington is good for both those people who want to buy,

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do them up and sell them on.

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But equally there's a great demand on the rental market too, so if you

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wanted to buy it, do it up and then rent it out, equally strong demand.

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It's good to know that both markets are healthy.

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Will the fact that the property is currently leasehold put

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potential buyers off?

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I think that the fact that the freehold is going to be

0:18:260:18:29

available, subject to satisfactory completion of the works,

0:18:290:18:32

should negate any problems there may have been over the lease.

0:18:320:18:36

What do you think the property's value will be once refurbished?

0:18:360:18:41

Two options on this property.

0:18:410:18:42

On the open market,

0:18:420:18:43

I would suggest that it would for a figure in the region of £150,000.

0:18:430:18:48

On the rental market, I expect it to achieve somewhere between £700

0:18:480:18:53

and £750 per calendar month.

0:18:530:18:55

OK, this is a big property.

0:18:570:18:59

Needs a lot of work doing to it, so if you don't mind

0:18:590:19:01

getting your hands dirty, rolling

0:19:010:19:03

your sleeves up and really mucking in, this could be the place for you.

0:19:030:19:06

And if you get it for anywhere near the guide

0:19:060:19:08

price of £75,000 you're definitely on to a winner.

0:19:080:19:11

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

0:19:110:19:14

Today there are some special conditions for this

0:19:140:19:16

section of the auction.

0:19:160:19:18

You can only buy a Birmingham council lot

0:19:180:19:21

if you have a bankers draft in your possession right now.

0:19:210:19:26

So who will bid me, with a banker's draft then, lot 2 to start me

0:19:260:19:29

if you will.

0:19:290:19:30

Where are we sir? We're 50 again.

0:19:300:19:32

At 50 in front of me. Is it 60 anywhere?

0:19:320:19:35

60, do you have a draft sir? Thank you. At 60. 70, sir? 70.

0:19:350:19:40

80. 90. 100.

0:19:400:19:44

At 90,000 then, are we all done? New bid at 100, do you have a draft sir?

0:19:440:19:49

Thank you. At 100 I'm bid. 110?

0:19:490:19:52

105?

0:19:520:19:55

102.

0:19:550:19:56

104, sir?

0:19:560:19:57

No. That was shrewd bid then at 102.

0:19:580:20:02

Sir, do you want 103?

0:20:020:20:03

103, 104. 105?

0:20:040:20:07

No. At 104,000 right in front of me. Are we all done?

0:20:080:20:13

One, two, three, can you get your draft ready please.

0:20:130:20:16

He's holding it above his head, that's what I like to see.

0:20:160:20:20

GAVEL BANGS

0:20:210:20:22

We're in, well done, number 457.

0:20:220:20:24

104,000, congratulations sir. Well done.

0:20:240:20:28

The top bidder, complete with his banker's draft made

0:20:280:20:31

out for £104,000 was estate agent Golam.

0:20:310:20:35

He buys properties as a side line, renovates them,

0:20:350:20:38

and then resells them. I met him at his latest purchase.

0:20:380:20:41

-Golam, nice to meet you, sir.

-Nice to meet you, sir.

-Congratulations.

0:20:410:20:44

-Thank you.

-Why this particular house?

0:20:440:20:46

"Why this particular house?", it's just on a main road, and something

0:20:460:20:49

that will appeal to investors as well as first-time buyers.

0:20:490:20:53

What are you going to do with it?

0:20:530:20:55

Gut it out top to bottom and restart on it really.

0:20:550:20:57

And who's going to do that for you,

0:20:570:20:59

because you've got a lot of work to do.

0:20:590:21:01

Yes, I've got several contractors coming in to do bits as we're

0:21:010:21:04

-going along.

-What's the budget to get this whole place turned around?

0:21:040:21:09

-About £15,000. Yes,

-you heard right, 15 not 50.

0:21:090:21:14

What is Golam hoping to achieve from that relatively small sum?

0:21:140:21:18

Well we're going to put rewiring, new windows, new kitchen,

0:21:180:21:22

new bathroom, new plastering, so pretty much everything really.

0:21:220:21:26

And at the back of the property you've got a bit of extra

0:21:260:21:29

space there after the kitchen.

0:21:290:21:30

Yes, what we're planning to do is knock that building down

0:21:300:21:33

and rebuild it again and put a new bathroom in there.

0:21:330:21:36

Into your middle floor, what are you going to do with the bedrooms?

0:21:360:21:40

Leave them as it is, replaster them, put a new bathroom in,

0:21:400:21:43

and same again, just refurbish the whole house.

0:21:430:21:46

-I might take some of the chimneys out, but not sure yet.

-OK.

0:21:460:21:49

-And the top floor you just keep?

-Just keep it as it is.

-Keep as is.

0:21:490:21:53

What about outside,

0:21:530:21:54

at the back of the property you've got a decent sized back garden.

0:21:540:21:57

What we're going to do with the garden,

0:21:570:21:59

we're going to cut all the trees down and flatten the garden.

0:21:590:22:02

And on the side of the bay window, we're going to knock that out

0:22:020:22:05

and rebuild that again.

0:22:050:22:06

How long's it going to take your team of builders to get it finished?

0:22:060:22:09

-I would say about three months, maybe four. Not sure.

-OK.

0:22:090:22:13

So you've got a 125-year lease on this property at the moment,

0:22:130:22:16

but there's maybe something just to entice you in.

0:22:160:22:19

Yes, basically, Birmingham City Council has given us

0:22:190:22:22

a 125-year lease, cos this was an empty property for several years.

0:22:220:22:26

So, what they're trying to do is make sure that we actually

0:22:260:22:29

refurbish the property and actually bring it back to use

0:22:290:22:31

so that somebody is actually living in the property.

0:22:310:22:34

So, what they have said is they'll give us the 125 year lease.

0:22:340:22:37

Once we've done the work they'll actually give us the freehold.

0:22:370:22:39

So what's going to happen to your full-time job,

0:22:390:22:42

you've got a full-time job, this is part-time, is it going to switch?

0:22:420:22:45

I think this will probably be more full-time next than the job

0:22:450:22:48

-I'm doing at the moment.

-So Golam, you've got everything in place.

0:22:480:22:51

-I wish you all the best.

-Thank you.

0:22:510:22:53

-Hope it works well for you, good luck.

-Thank you, sir.

0:22:530:22:55

I don't know if Golam's just incredibly cool or just very,

0:22:570:23:01

very confident.

0:23:010:23:02

I think there's a lot of work that needs to be done to this

0:23:020:23:05

house to turn it around.

0:23:050:23:06

He hasn't given himself the largest budget either. £15,000.

0:23:060:23:10

Will he get it turned around with that money?

0:23:100:23:12

I'm not too sure, but I like the house, I like Golam,

0:23:120:23:16

and I wish him well.

0:23:160:23:18

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

0:23:180:23:20

Coming up in East Ham...

0:23:220:23:23

Steve's got tunnel vision

0:23:230:23:25

when it comes to his future in property development.

0:23:250:23:28

Get as many as I can before I retire to golf.

0:23:280:23:31

While in Erdington, Golam's budget isn't exactly on par.

0:23:330:23:36

I'm not disappointed about spending the extra money because...with

0:23:360:23:39

the amount of work we had to do.

0:23:390:23:41

Let's meander back to the Amber Valley,

0:23:450:23:47

and the town of Ripley, where I visited this two bedroom

0:23:470:23:51

terraced house with a guide price of £46,000.

0:23:510:23:54

On the ground floor, two reception rooms

0:23:560:23:59

and a decent sized kitchen, all of which were in need of modernisation.

0:23:590:24:03

But it was upstairs where the problems began. The back

0:24:040:24:07

bedroom looked all good, as did the front bedroom.

0:24:070:24:10

Only, it had a bathroom in it. The only bathroom in the house that is.

0:24:100:24:16

Something that would be tough to correct given the layout

0:24:160:24:20

and dimensions of the house, and therefore something, well,

0:24:200:24:23

you'd probably have to just live with.

0:24:230:24:25

And then there was the discovery in the loft.

0:24:250:24:28

Oh, dear, that's not good.

0:24:280:24:30

Light coming through.

0:24:300:24:32

That's not ideal, cos if the light can come through, so can the rain.

0:24:320:24:36

MUSIC: Up On The Roof by The Drifters

0:24:380:24:41

That roof would need repairing ASAP.

0:24:410:24:44

And builder Andy was the man to do it,

0:24:440:24:46

buying the property for £65,000 at auction.

0:24:460:24:50

With his experience he intended on doing a full top to bottom

0:24:500:24:54

renovation in 12 to 14 weeks, and with a very particular budget.

0:24:540:24:59

I've worked it out to about £14,600 I think, with

0:24:590:25:03

a contingency of £3,000 on top of that.

0:25:030:25:05

-Wow.

-I'm hoping we can do it for under 15.

0:25:050:25:07

You've got to be realistic, you know,

0:25:070:25:09

when you start talking about a rewire,

0:25:090:25:11

whole central heating system, re-plaster boarding

0:25:110:25:14

and plastering, new kitchen, new bathroom, new roof, scaffold.

0:25:140:25:17

You can't do all that for eight or nine thousand.

0:25:170:25:20

You're going to spend a good chunk of money.

0:25:200:25:22

If you're going to do properly, and make a really nice job of it,

0:25:220:25:25

you've got to spend the money, you've got to do it properly.

0:25:250:25:29

Intending to sell, Andy was also thinking about marketing

0:25:290:25:33

the property before starting the renovations, to allow

0:25:330:25:36

a future buyer some input on the new fittings and features in the house.

0:25:360:25:41

A nice idea, I thought, so how did he get on?

0:25:410:25:44

We've returned five months later to have a look.

0:25:440:25:47

As you can see, Andy's opened up the previous dining room and kitchen at

0:25:540:25:58

the back of the house to create this stunning open-plan kitchen-diner.

0:25:580:26:02

In doing so, he's moved the back door into the dining area,

0:26:020:26:06

to offer more worktop space in the kitchen.

0:26:060:26:09

It's now a fabulous family space finished to an excellent standard.

0:26:090:26:13

MUSIC: Brick By Brick by Newton Faulkner

0:26:150:26:18

Next door in the lounge it's all changed too.

0:26:190:26:21

As planned, Andy's stripped this house back to the brick and started

0:26:210:26:25

again, installing new wiring, new plasterboard and plaster.

0:26:250:26:29

Central heating, as well as doors, skirting and carpets.

0:26:290:26:33

With neutral tones, it's now looking brand-new in here.

0:26:330:26:36

Upstairs, the two bedrooms have had the same treatment.

0:26:360:26:40

A thorough refurbishment and now it's looking fantastic.

0:26:400:26:43

The only down note here is that the bathroom is still

0:26:460:26:49

accessed from the bigger bedroom.

0:26:490:26:51

But, like the rest of the house,

0:26:510:26:53

it's finished to an impeccable standard.

0:26:530:26:56

Andy's also raised the level of the floor in here, removing the previous

0:26:560:26:59

step down from the bedroom, giving the two rooms a much better flow.

0:26:590:27:04

And going up again, as intended the roof has been re-done entirely.

0:27:040:27:09

It's now watertight and prepared to face the elements for years to come.

0:27:090:27:13

The back garden has had a tidy up too,

0:27:140:27:17

with new fencing as well as some much needed pruning.

0:27:170:27:20

It looks twice the size.

0:27:200:27:22

This has clearly been a major job undertaken by Andy here.

0:27:220:27:26

So, did he stick with his original plan of marketing

0:27:260:27:29

the property before the renovations began?

0:27:290:27:31

We decided not to market it before it was finished.

0:27:330:27:36

Mainly because a lot of people that come to buy are not

0:27:360:27:39

going to see through whatever they see in an unfinished state.

0:27:390:27:43

So, eventually we decided that we was going to get it

0:27:430:27:45

completely finished, with the bathroom and kitchen finished,

0:27:450:27:48

you know, tiles, carpeted, painted etc.

0:27:480:27:51

Before we decided to put it on the market.

0:27:510:27:54

Well, regardless,

0:27:540:27:55

I'm sure he'll find someone who loves the finish here.

0:27:550:27:58

So, who was responsible for all the hard work?

0:27:580:28:00

I've undertaken most of the work myself.

0:28:010:28:03

Obviously with the electrics I had to get my sparky that

0:28:030:28:06

I use on other jobs.

0:28:060:28:09

He did all the first fix and the second fix electrics.

0:28:090:28:11

I fitted the boiler and I fitted the central heating system

0:28:110:28:15

and got it all running.

0:28:150:28:16

And then I've got a plumber that comes in and tests all

0:28:160:28:18

the gas for me and commissions it, and gives me a certificate for it.

0:28:180:28:22

I boarded it all, I got it on skimming

0:28:240:28:25

because I don't plaster, so I've got a plasterer that comes in

0:28:250:28:28

and plasters all the walls and the ceilings.

0:28:280:28:31

But other than that, all the tiling, the kitchen, the bathroom,

0:28:310:28:36

the joinery, I've done myself. And it's been a long job.

0:28:360:28:40

A long job, though pretty close to his original

0:28:400:28:43

timescale of 12 to 14 weeks, taking 14 and a half weeks in the end.

0:28:430:28:48

But what about that precise budget of £14,600?

0:28:480:28:54

The actual fees for the renovation come in at around £17,500.

0:28:540:29:00

Mainly because when we opened this room up we realised that

0:29:000:29:03

we could get a bit better kitchen in.

0:29:030:29:05

I've gone for slightly better tiles for the bathroom.

0:29:050:29:08

So, I've not really gone over budget,

0:29:080:29:10

because I've put better things in, and I've made it a little bit

0:29:100:29:14

better quality than what I'd originally planned.

0:29:140:29:16

But, yes, the budget has gone a little west.

0:29:160:29:20

Well, just short of £3,000 over budget.

0:29:200:29:23

But he did plan for that with a contingency fund.

0:29:230:29:27

That takes his total spend on the property to £82,500.

0:29:270:29:30

So, will it have all been worth it?

0:29:330:29:36

We invited along two property experts to find out.

0:29:360:29:39

Let's start with the auctioneer who saw it before.

0:29:390:29:42

Total transformation, but I suppose in a way that's what I expected.

0:29:420:29:47

But compared to what it was originally - different house.

0:29:470:29:50

Looking around the house, I think what they've

0:29:500:29:53

achieved in terms of specification standard is extremely good.

0:29:530:29:57

I wouldn't be surprised if they've actually probably spent a bit more than they've budgeted for.

0:29:570:30:02

But very, very acceptable.

0:30:020:30:04

I think the main selling points of this property is the open

0:30:040:30:07

plan kitchen-diner, it's really popular nowadays.

0:30:070:30:10

The upstairs layout is a little bit disappointing with having to

0:30:100:30:13

walk through a bedroom to get to the bathroom.

0:30:130:30:16

So, given the somewhat unorthodox layout,

0:30:170:30:20

what do they think this property could achieve?

0:30:200:30:22

Well for rental, the auctioneer

0:30:220:30:24

and agent recommended a value of between £475

0:30:240:30:27

and £500 per calendar month, giving a potential yield of just over 7%.

0:30:270:30:32

But as Andy always intended to sell,

0:30:320:30:35

let's get those all important sales figures.

0:30:350:30:37

So when it goes on the sales market, I think it would have an

0:30:380:30:42

asking price of between £105,000 and £110,000.

0:30:420:30:46

I'd put the property on the market between £110,000 and £115,000.

0:30:460:30:49

Yes, I think they're there or thereabouts to be fair.

0:30:490:30:52

We've had three agents round who all valued it at 115,

0:30:520:30:56

one saying market it at 120,which is what we've done, a week ago.

0:30:560:31:01

With a view of achieving 115.

0:31:010:31:03

If Andy did manage to achieve £115,000, that would give him

0:31:040:31:08

a very healthy pre-tax profit of £32,500.

0:31:080:31:11

So, after this successful renovation, what's next for Andy?

0:31:130:31:17

Probably a week off, bit of a rest,

0:31:190:31:21

and then straight into another one I think.

0:31:210:31:24

As soon as I found another one, get it bought, get it done up

0:31:240:31:27

and get it on the market.

0:31:270:31:28

East Ham in the London borough of Newham was one of the six

0:31:320:31:36

boroughs to host the 2012 Olympics.

0:31:360:31:38

Newham recorded the capital's top property rise in 2015,

0:31:380:31:43

partly due to the development around the former Olympic village.

0:31:430:31:47

A 23% increase has been recorded.

0:31:480:31:51

And talking of records, this area was home to Bert Wheedon,

0:31:510:31:55

whose guitar books taught, amongst others,

0:31:550:31:57

Beatles Lennon, McCartney and Harrison how to play.

0:31:570:32:00

Bert's first solo performance was in East Ham's town hall.

0:32:020:32:05

So, what kind of property have we plucked from the auctions today?

0:32:050:32:09

Well, I'm here to see a three-bedroom mid-terrace,

0:32:090:32:11

and it had a guide price of £180,000.

0:32:110:32:15

Now, for London, even East Ham, that sounds pretty cheap.

0:32:150:32:19

So, no sign of an Olympic uplift with this guide price.

0:32:210:32:25

Hmm, it does make me wonder.

0:32:250:32:26

Hoo, lots of crisscross windows everywhere,

0:32:260:32:29

but it is quite nice to have a little porch. I do like that.

0:32:290:32:35

So, on the inside not bad at all.

0:32:350:32:37

Walking straight through into two reception rooms that have

0:32:370:32:40

been opened up into one big space. I'm not quite sure about all this.

0:32:400:32:46

It feels a little mock Tudor to me,

0:32:460:32:49

not that there's anything wrong with that, but it's not quite

0:32:490:32:53

working. I would say it's a little bit past its sell by date in here.

0:32:530:32:56

And you've got two replica fireplaces with your brickwork

0:32:560:33:00

there and there, two exact, which is quite posh I suppose, really.

0:33:000:33:05

And round here, well, I'm not quite sure what this room is.

0:33:050:33:08

It's like a sort of exterior outside room with a plastic roof on the top.

0:33:090:33:15

It doesn't feel like part of the house at all.

0:33:150:33:18

And a big danger zone area here, look.

0:33:180:33:21

Loads of damp in the corner,

0:33:210:33:22

that certainly will need to be looked into.

0:33:220:33:25

That's a little bit worrying.

0:33:250:33:27

And through here we've got the kitchen,

0:33:270:33:29

so a really nice space, big long kitchen,

0:33:290:33:32

and a bit of an empty room at the back, which is telling me

0:33:320:33:35

there's no bathroom downstairs, so it must be up there.

0:33:350:33:40

And that's quite good, I'm quite surprised by that.

0:33:400:33:43

Mm, now the room at the end of the kitchen is a lean-to

0:33:440:33:47

conservatory, but it's in a bit of a tired looking state.

0:33:470:33:50

Turn through the door on your right, and this leads into the room

0:33:500:33:54

with the French doors that I saw in the through lounge.

0:33:540:33:57

Why have one lean-to when you can have two, eh?

0:33:570:34:00

But I've taken my quest for that missing bathroom upstairs.'

0:34:010:34:04

I've found it.

0:34:060:34:07

Yes, here is the upstairs bathroom. It's um, it's quite unusual.

0:34:070:34:12

This seems like a sort of reception area over here.

0:34:120:34:15

The toilet is a little cheeky toilet behind, you can't really see it.

0:34:150:34:19

And then you've got the corner bath.

0:34:190:34:21

So, jokes aside, I don't think this bathroom works,

0:34:210:34:23

and it's quite a luxury to have such a huge space. So, what would I do?

0:34:230:34:29

I'm thinking I'd turn this into a bedroom, have a nice en suite

0:34:290:34:32

so you've still got the facilities.

0:34:320:34:34

Perhaps put a bathroom downstairs,

0:34:340:34:36

now I know I don't often say that on Homes Under The Hammer,

0:34:360:34:39

but I do think you'll need to have access to a bathroom

0:34:390:34:42

somewhere for the other bedrooms.

0:34:420:34:44

And also, I would speak to the local agents and see what

0:34:440:34:47

they would advise, because they know the area better than anybody.

0:34:470:34:50

Whatever the outcome, the fittings here are well past it.

0:34:500:34:53

And whoever heard of a tandem basin and loo arrangement?

0:34:530:34:57

The mind boggles. Literally.

0:34:580:35:00

MUSIC: Taking A Bath In Rust by The Eels

0:35:090:35:14

My hunch is that this bathroom used to be the third bedroom.

0:35:150:35:19

Here's a clue, there's plain glass in the window.

0:35:190:35:23

So, a bit of geography. Top of the stairs, turn left for the bathroom.

0:35:230:35:28

Next to that is bedroom two, then coming to the front of the house,

0:35:280:35:33

bedroom one, and next to it, a tiny boxroom, bedroom three.

0:35:330:35:38

Back in bedroom two, there's not a lot that redecorating

0:35:400:35:43

and re-carpeting wouldn't fix.

0:35:430:35:45

Bedroom one has a large bay overlooking the street, but at some

0:35:490:35:53

stage has had a partition wall fixed to divide off the small

0:35:530:35:57

boxroom next door.

0:35:570:35:58

I suspect around the same time the large bathroom conversion happened.

0:36:010:36:06

Knocking down the partition, and moving the bathroom, could be

0:36:060:36:09

the key here.

0:36:090:36:11

So if you really were thinking about moving that bathroom

0:36:110:36:14

from upstairs to downstairs, this could be the right place to put it.

0:36:140:36:17

All the plumbing is at the back, you would need to

0:36:170:36:20

think about putting a permanent roof on here, though.

0:36:200:36:22

So, not small jobs, but it really could be the icing on the cake.

0:36:220:36:27

Well, that's what it looks like. Doesn't it?

0:36:280:36:31

We called in a local estate agent to get his opinion on the property,

0:36:350:36:38

and to see what he values it at.

0:36:380:36:41

Plus, would he move the bathroom?

0:36:410:36:42

Having looked around inside the property,

0:36:420:36:45

I feel that the property is in quite a good order, it doesn't need

0:36:450:36:49

too much work too it, a little bit of modernising here and there.

0:36:490:36:52

A little bit of small alterations in regards to moving the bathroom

0:36:520:36:56

to a different room.

0:36:560:36:57

Well, I considered the back downstairs, which is

0:36:570:36:59

where I think the bathroom was originally.

0:36:590:37:02

In terms of the value of the property

0:37:030:37:05

if you do move the bathroom downstairs, it could put buyers off.

0:37:050:37:09

As well as perhaps being less appealing,

0:37:090:37:11

my idea does involve a fair amount of cost in building an extension.

0:37:110:37:16

Now a lot would depend on what you got it for at auction.

0:37:160:37:19

So what could it be worth after renovation?

0:37:190:37:22

As a three-bed, once renovated the property would

0:37:220:37:26

sell for £380,000 and it will rent for £1,350 per calendar month.

0:37:260:37:31

So, this terrace is tired, it's dated,

0:37:330:37:35

but my biggest issue is what to do about that bathroom.

0:37:350:37:39

Who was ready to make some decisions with this one?

0:37:390:37:42

Let's go to auction and find out.

0:37:420:37:44

Unfortunately, we were unable to show you the bidding for this

0:37:460:37:49

particular lot, but it was sold for £320,000.

0:37:490:37:53

The person paying £140,000 over that guide price was roofer and builder Steve,

0:37:550:38:01

who bought it along with his friend and golfing buddy, Senna.

0:38:010:38:05

This was their first venture together. So will they end up in the bunker with this one?

0:38:050:38:10

-Steve, congratulations.

-Yes, thank you.

0:38:100:38:12

So, here we are, in your house now in East Ham.

0:38:120:38:15

You did pay quite a bit over the guide price, didn't you,

0:38:150:38:18

-on auction day.

-Slightly.

0:38:180:38:20

Did you plan to spend that much, did you have a budget set aside?

0:38:200:38:23

No, no, we had a budget of about 315, but then they started

0:38:230:38:27

going up so we followed it and got really nervous towards the end.

0:38:270:38:30

-Did you?

-Yes.

-Did you enjoy it?

-Yes, Yes.

0:38:300:38:34

And when the hammer went down and this was your property,

0:38:340:38:37

how did you feel?

0:38:370:38:38

Really nervous, like your stomach is all jitters and everything,

0:38:380:38:41

like you've just done your test or something or done some

0:38:410:38:44

exam at school or something.

0:38:440:38:46

So now you've got this house and you've had time to think

0:38:460:38:49

about it and realise how much money you've spent, how do you feel now?

0:38:490:38:53

Are you quite excited, do you think you've got a good deal?

0:38:530:38:55

Yes, Well, I think so, yes.

0:38:550:38:57

What are you going to do,

0:38:570:38:59

-have you bought this for yourself to live in, or...

-No, we might do it

0:38:590:39:04

to rent, depending on how much money at the time when we've finished it.

0:39:040:39:07

I think we're going to spend around ten grand, roughly,

0:39:070:39:10

and see how we go from there. What people will give us for either renting or selling.

0:39:100:39:14

So what are you going to do with this one, I'm dying to know,

0:39:140:39:16

cos its got a sort of mock Tudor feel to it.

0:39:160:39:19

I don't know, is it mock Tudor?

0:39:190:39:21

It's got that very dark oppressive wood everywhere,

0:39:210:39:23

-and it's just a little bit dated.

-Oh, very dated, yes.

0:39:230:39:26

We're going to knock all this down, spots everywhere, clean it up,

0:39:270:39:31

tidy it up, change obviously the tiles in the bathroom and stuff.

0:39:310:39:35

We're not too sure whether we're going to move

0:39:350:39:37

the bathroom from upstairs to down, we're not too sure yet.

0:39:370:39:40

But there's a few little problems, isn't there, with this property?

0:39:400:39:43

The bathroom upstairs is huge, it's a real luxury,

0:39:430:39:46

you've got that lovely designated area for the sink.

0:39:460:39:49

-A little partition, haven't you?

-Just what I like, actually.

0:39:490:39:53

A corner bath, I mean, it is really set about in a really unusual way.

0:39:530:39:56

-Bit strange.

-Yes, like a big luxury room.

0:39:560:39:59

But if you moved it downstairs,

0:39:590:40:02

then you would have a bedroom upstairs, but actually should

0:40:020:40:05

you move the bathroom from upstairs to downstairs? I don't know.

0:40:050:40:09

We was going to put an en-suite upstairs, keep the bathroom,

0:40:090:40:12

cut it in half as such, well less than half, put a little en

0:40:120:40:15

suite in so at least you've got an upstairs toilet and shower.

0:40:150:40:18

And then put the other bathroom downstairs, the main one downstairs.

0:40:180:40:21

Because we think that's a bit easier, really.

0:40:210:40:23

Now I looked out the back there and thought "Oh,

0:40:230:40:25

"it's not even got a roof." But now I'm talking to you, you're a roofer!

0:40:250:40:29

So for you that's quite an easy job, isn't it?

0:40:290:40:32

Yes, it's nothing, that's probably a couple of days work really.

0:40:320:40:35

Couple of days work, how much would that cost for you to sort that out?

0:40:350:40:38

Probably say tops about a grand.

0:40:380:40:40

So you could do that, you could knock that job off,

0:40:400:40:43

and then you have got a nice downstairs bathroom.

0:40:430:40:46

And I think the idea of putting in a nice luxury en suite to the

0:40:460:40:49

master bedroom is a good idea,

0:40:490:40:51

cos whoever takes this on wouldn't be put off by the fact there's

0:40:510:40:55

-a downstairs bathroom, because they've got en suite facilities.

-Yes.

0:40:550:40:58

So actually I think you've hit the nail on the head, that could work really well.

0:40:580:41:01

So how long do you think it's going to take you to refurbish this

0:41:010:41:05

-property?

-About four weeks I reckon.

-And will you be here every day?

-Yes.

0:41:050:41:09

-Overalls on.

-Yes.

-Working really hard.

-Yes.

0:41:090:41:11

See, it's great when it's in your control

0:41:110:41:13

and you don't have to rely upon others.

0:41:130:41:15

No, it's true.

0:41:150:41:17

Maybe a few others, a plasterer, I'm not really good at plastering,

0:41:170:41:20

I've tried it but I'm not the best.

0:41:200:41:21

So four weeks, £10,000, I mean you really think...

0:41:210:41:24

We'll probably do it under that, I think it'll be under that.

0:41:240:41:26

-Seriously?

-Cos you think, if you take your money out of it that you don't put

0:41:260:41:30

into it, of the labouring and stuff like that, it's going to be less.

0:41:300:41:33

-And what about the kitchen?

-It's a lovely kitchen, don't you like it?

0:41:330:41:37

-You're keeping that kitchen?

-No, we're going to change it.

0:41:370:41:40

Oh, you joker. So, do you think having bought in East Ham, you know,

0:41:400:41:44

that you've bought at the right time here?

0:41:440:41:46

Just about, probably a year late really.

0:41:460:41:50

But, we're still on the bandwagon, so everything's still

0:41:500:41:53

sort of mooching up, so as long as it stays that way we're OK.

0:41:530:41:56

So what's your long term property plan, then?

0:41:560:41:59

What do you hope to achieve?

0:41:590:42:00

Probably to have fixe or six properties that I own,

0:42:000:42:03

or rent as such. So that would be nice in the long run.

0:42:030:42:08

If I can get as many as I can in the next 10 or 20 years, before I retire to golf.

0:42:080:42:12

Before you retire so you can play more golf.

0:42:130:42:15

Yeah, of course, you know, it'll be more easier then,

0:42:150:42:18

I can play every day. Well, I don't know about that, no.

0:42:180:42:20

Steve, congratulations, I'm really excited to see the outcome here.

0:42:200:42:23

-Well done.

-Thank you very much.

-Nice to meet you, aw, thank you.

0:42:230:42:26

-Thank you.

-No problem.

-I'm blushing.

0:42:260:42:28

So, Steve certainly has some useful skills that he can apply

0:42:290:42:33

to his first auction purchase.

0:42:330:42:35

But what will he decide to do about that bathroom?

0:42:350:42:38

And will he really get all the work done in four weeks'

0:42:380:42:41

time with the lure of the golf course looming?

0:42:410:42:45

You can join me later on in the programme to find out

0:42:450:42:47

if Steve's handiwork is over or under par.

0:42:470:42:50

So, we've seen how one of the properties has turned out,

0:42:540:42:56

-what about the other two?

-Yes, have they hit the jackpot or not?

0:42:560:43:00

Here's hoping they've done well. Let's find out.

0:43:000:43:03

Let's head back now to the suburb of Erdington in Birmingham.

0:43:040:43:08

I visited this mammoth four bedroom mid-terrace property,

0:43:080:43:12

with a guide price of £75,000.

0:43:120:43:15

Inside the house, and well, to be honest with you,

0:43:160:43:19

it had seen better days.

0:43:190:43:21

At the back the kitchen was a decent size,

0:43:230:43:25

but in need of a complete overhaul.

0:43:250:43:27

Then there was the extension next door,

0:43:270:43:29

which housed a downstairs bathroom.

0:43:290:43:31

The less said about that the better. Upstairs, more of the same.

0:43:340:43:38

Four decent sized bedrooms, over two floors, all in various states of disrepair.

0:43:380:43:44

There's a lot of work to be done from what I've seen,

0:43:440:43:47

but there's loads of potential.

0:43:470:43:50

As well as that potential, there was

0:43:500:43:52

something else lurking in the legal pack that had me smiling.

0:43:520:43:56

At present this property has a 125-year lease on it.

0:43:560:44:01

But, if you can turn this around within 12 months to being

0:44:010:44:06

a residential occupancy again, the council will give you the freehold.

0:44:060:44:12

I thought that was a major incentive,

0:44:120:44:14

and local estate agent Golam agreed,

0:44:140:44:17

and bought the property for £29,000 over the guide price of £104,000.

0:44:170:44:21

What you going to do with it?

0:44:240:44:26

Gut it out top to bottom and restart on it really.

0:44:260:44:28

And who's going to do that for you,

0:44:280:44:30

because you've got a lot of work to do.

0:44:300:44:32

Yes, I've got several contractors coming in to do bits as we're

0:44:320:44:36

going along.

0:44:360:44:37

So, with the help of his contractors,

0:44:370:44:39

Golam planned to replace bathrooms, kitchen,

0:44:390:44:42

as well as knock down the extension and rebuild it.

0:44:420:44:46

Not to mention rewiring, replastering,

0:44:460:44:48

and general cosmetic work. Which, believe me, was no small task.

0:44:480:44:53

All for a budget of £15,000 and the timescale of three to four months.

0:44:530:44:58

It's fair to say he wasn't lacking in confidence,

0:44:580:45:01

so would he pull it off?

0:45:010:45:02

We've returned five months later to find out.

0:45:060:45:09

Wow. It's hard to believe this is the same house.

0:45:160:45:20

That tired old extension has been knocked down and rebuilt.

0:45:200:45:24

Even the foundations have been dug up.

0:45:240:45:26

But it has meant that Golam

0:45:260:45:28

and his team were able to create a nice modern kitchen-diner.

0:45:280:45:32

The kitchen was in a very dilapidated condition,

0:45:320:45:35

and there was an outbuilding there which was really bad.

0:45:350:45:38

So when we came to actually renovate the property, what

0:45:380:45:41

we found was that the outbuilding just fell down altogether.

0:45:410:45:44

So, what we had to do was rebuild the outbuilding, and integrate

0:45:440:45:47

the kitchen with the outbuilding, to make it a kitchen-diner now.

0:45:470:45:51

That wasn't the only structural job here, though.

0:45:510:45:54

The chimney breast was taken away to allow for this open-plan design,

0:45:540:45:58

and I think it's worked a treat.

0:45:580:45:59

Now, I said the downstairs shower and toilet was in the worst

0:46:010:46:04

condition I've ever seen, but now it's been moved under the staircase.

0:46:040:46:08

It might be small, but it's smart and functional.

0:46:080:46:11

The two reception rooms were decent sizes, but Golam's team have

0:46:140:46:17

gutted them, rewired, replastered, and put new windows in.

0:46:170:46:21

On the first floor, things look fresher here too.

0:46:220:46:25

The smallest bedroom has increased in size by the removal of that

0:46:270:46:31

chimney breast, so now is a decent sized kids room.

0:46:310:46:34

The bathroom on the first floor also had a refit, and is now clean

0:46:370:46:40

and simple, allowing scope for the new occupant to make their mark.

0:46:400:46:44

Upstairs in the attic, the final bedroom has been tidied up too,

0:46:460:46:50

and is now a fresh and bright space.

0:46:500:46:52

We were thinking about the HMO,

0:46:520:46:54

and we were thinking about the family home.

0:46:540:46:56

After speaking to several people,

0:46:560:46:57

what they said is that this area is very popular for rentals.

0:46:570:47:01

So, a certain amount of work we've done to HMO regulations and a

0:47:010:47:05

certain amount of work has been done just for a normal standard house.

0:47:050:47:08

So, it's an option for whoever buys it to have it to either have

0:47:080:47:11

it as HMO or as a family home.

0:47:110:47:13

I think that's smart.

0:47:130:47:15

Making this property fit for both a family and shared residents

0:47:150:47:19

will see Golam access a wider market when it comes to selling.

0:47:190:47:22

Now let's move on to that freehold situation.

0:47:250:47:27

I actually spoke to Birmingham city Council about the freehold,

0:47:270:47:31

and they will be coming round to assess the property,

0:47:310:47:34

and they've shown me that the freehold will be available to us.

0:47:340:47:37

Excellent news.

0:47:390:47:40

Golam intended on completing the work in three to four months,

0:47:400:47:43

but it's actually taken him six months.

0:47:430:47:46

Not all that surprising, given the scale of work that's gone on here.

0:47:460:47:50

But how did his equally ambitious 15 grand budget hold up?

0:47:500:47:54

We've actually gone over budget, we've actually spent around £20,000.

0:47:570:48:03

I mean, I'm not disappointed about spending the extra money

0:48:030:48:06

because of the amount of work we had to do.

0:48:060:48:09

I had a feeling that budget would grow.

0:48:090:48:12

That takes his total spend on this property to £124,000.

0:48:120:48:15

So, what will the experts think?

0:48:210:48:22

We invited two local estate agents along to find out.

0:48:220:48:26

This is my first visit to the property.

0:48:260:48:29

The property's been finished to an absolutely superb

0:48:290:48:32

standard for somebody that would be looking to buy or rent the property.

0:48:320:48:37

I think the main selling points, really,

0:48:370:48:39

are the size of the property.

0:48:390:48:42

It's not very often that you get this type of property

0:48:420:48:44

come on to the market for sale or for let.

0:48:440:48:46

And the size of the rooms, they're all very good proportions.

0:48:480:48:52

The layout's extremely good

0:48:520:48:53

and the location's quite sought after as well.

0:48:530:48:56

This is the first time I've been into the property,

0:48:560:48:58

and I'm quite impressed.

0:48:580:48:59

He's done a good neutral job of decorating and improving it,

0:48:590:49:02

with an excellent extension on the kitchen,

0:49:020:49:04

which I think has made all the difference to the accommodation.

0:49:040:49:07

Everyone these days wants a modern, spacious, breakfast kitchen

0:49:070:49:11

and that's what it offers.

0:49:110:49:12

So let's move on to valuations,

0:49:120:49:14

and see if Golam will get a return on his £124,000 investment.

0:49:140:49:18

I think currently this house would have a market value

0:49:200:49:23

of around £175,000, give or take a little bit, depending on the buyer.

0:49:230:49:28

Resale value on this property,

0:49:280:49:30

I would look to market it for £165,000.

0:49:300:49:32

The first valuation is more realistic valuation, but because

0:49:340:49:39

property prices have gone up since we actually purchased the property.

0:49:390:49:43

So, we've had other valuations and they were more at 175, 180.

0:49:430:49:47

If Golam was to achieve that top figure of £175,000,

0:49:470:49:51

hat would see him pocket a profit of 51 grand, before taxes and fees.

0:49:510:49:56

But what about rental?

0:49:560:49:58

For rental I think this property would achieve about £750 per

0:49:590:50:03

calendar month.

0:50:030:50:04

I would look to put this property on the market at a rental

0:50:040:50:06

of £850 per calendar month.

0:50:060:50:10

Rental is about the norm for the area, about £750 to £800.

0:50:100:50:14

I wouldn't actually go through the rental route,

0:50:140:50:17

I will definitely put the house on the market.

0:50:170:50:19

So, despite that potential yield of just over 8%, Golam intends to sell.

0:50:190:50:24

After this successful property renovation,

0:50:250:50:28

has he got anything else in the pipeline?

0:50:280:50:31

Next is a couple more developments in the pipeline,

0:50:310:50:33

I've already got two lined up.

0:50:330:50:35

And hopefully 2016 will be a prosperous one.

0:50:350:50:39

MUSIC: Green Onions by Booker T & The MGs

0:50:420:50:44

Now we're returning to East Ham, London,

0:50:440:50:47

where earlier I looked around this mid-terrace three-bedroom house,

0:50:470:50:51

although one of the bedrooms was a tiny boxroom,

0:50:510:50:54

partitioned off this main bedroom.

0:50:540:50:56

It also had an unusual and large bathroom,

0:50:570:51:00

with an unconventional layout.

0:51:000:51:03

I don't think this bathroom works, so, what would I do?

0:51:030:51:06

I'm thinking I would turn this into a bedroom, have a

0:51:060:51:08

nice en suite so you've still got the facilities.

0:51:080:51:11

Perhaps put a bathroom downstairs,

0:51:110:51:13

now I know that I don't often say that on Homes Under The Hammer,

0:51:130:51:16

but I do think you'll need to have access to a bathroom

0:51:160:51:19

somewhere for the other bedrooms.

0:51:190:51:21

The new owner Steve, along with his business partner and golfing buddy,

0:51:210:51:26

bought it at auction for £320,000, way above the £180,000 guide price.

0:51:260:51:33

They too were contemplating moving the bathroom downstairs

0:51:330:51:36

to the lean-to affair off the back of the kitchen.

0:51:360:51:40

But it wasn't without its problems.

0:51:400:51:42

Now, I looked out the back there and thought, oh,

0:51:430:51:46

it's not even got a roof, but now I'm talking to you, you're a roofer.

0:51:460:51:49

So, for you that's quite an easy job, isn't it?

0:51:490:51:52

Yeah, that's nothing, that's probably a couple of days work,

0:51:520:51:54

really. Say tops about a grand.

0:51:540:51:56

And then you have got a nice downstairs bathroom.

0:51:560:51:59

With an optimistic timescale of just four weeks, have Steve

0:52:000:52:04

and his business partner taken on too much?

0:52:040:52:07

And was the 10 to £15,000 budget something even roofer Steve

0:52:070:52:12

couldn't stop going through the roof?

0:52:120:52:14

We're back three months since our last visit to find out.

0:52:140:52:17

MUSIC: We Found Love by Rihanna

0:52:200:52:22

And the kitchen now has its own rave lighting. Perfect for mojito making.

0:52:220:52:28

And it's not the only improvement down here.

0:52:310:52:33

Witness the old lean-to with a dodgy roof.

0:52:330:52:36

Not only was it re-roofed, it was rebuilt.

0:52:410:52:44

I know downstairs bathrooms are something of an alien concept,

0:52:440:52:47

but this really is a case of greater good for the rest of the house.

0:52:470:52:51

You just have to get over any prejudices.

0:52:510:52:54

# We found love in a hopeless place

0:53:060:53:10

# We found love in a hopeless place... #

0:53:100:53:13

With the Tudor style woodwork removed,

0:53:130:53:18

the through lounge is a lot more contemporary.

0:53:180:53:20

A modern colour scheme and flooring help with the look.

0:53:200:53:23

The modern look continues upstairs, with a neutral carpet

0:53:290:53:33

and feature black stair rail.

0:53:330:53:35

If it's a homage to the previous Tudor lounge, well,

0:53:380:53:41

it's one that works.

0:53:410:53:43

The master bedroom was compromised in size by the partition wall.

0:53:480:53:52

No longer.

0:53:530:53:54

The second bedroom has been cleared

0:54:040:54:06

and is now a much more welcoming space.

0:54:060:54:08

And finally, bedroom three, which was the old bathroom.

0:54:190:54:23

There's now en suite facilities at the entrance to the room,

0:54:230:54:26

but it's not without it's compromise of bedroom space.

0:54:260:54:29

An impressive transformation,

0:54:330:54:34

and Steve has a good reason for the overrun on the timescale.

0:54:340:54:39

He had a bad period of fibromyalgia syndrome, the condition which

0:54:390:54:43

can cause extreme fatigue and muscle tiredness.

0:54:430:54:47

This bout of illness put him out for a whole month.

0:54:470:54:50

I'm quite lucky, with my illness,

0:54:520:54:54

I've obviously got a good partner to fall back on.

0:54:540:54:58

So he pulls my back and I pull his,

0:54:580:55:00

so I'm sure in the summer months I'll be smashing around and

0:55:000:55:04

doing a lot more work than what he's doing, and he could be slacking.

0:55:040:55:08

If that's what you want to call it.

0:55:080:55:10

Steve's condition is less severe in the summer months, which is

0:55:100:55:14

fortunate when your golf is your main hobby.

0:55:140:55:16

So, how did the 10 to £15,000 budget fare?

0:55:160:55:21

The budget's sort of went over slightly,

0:55:210:55:23

probably to about near on 18.

0:55:230:55:25

Which was a bit sad, but it had to be spent, it had to be done.

0:55:260:55:29

So, now the property's finished, we're going to stick it up for sale.

0:55:290:55:33

Hopefully take the best offer and hit and run as such. Maybe go again.

0:55:330:55:39

To help with market valuations, we called in two local estate agents.

0:55:390:55:44

The first agent got to see the property before work began,

0:55:440:55:47

so what will he think to the new layout?

0:55:470:55:50

My thought on the layout changes is, in terms of the master bedroom,

0:55:500:55:53

fantastic, great, much more space

0:55:530:55:55

and made the size it should be for this sort of property.

0:55:550:55:59

The bathroom removing and making downstairs has created much

0:55:590:56:03

more space upstairs for the other bedroom.

0:56:030:56:05

I really like the modern style of it that they've done it in, the white

0:56:050:56:08

walls, the clean lines, I think it's a really really nice property.

0:56:080:56:11

I love the garden now somewhere to play for the kids.

0:56:110:56:14

And I really like the bathroom as well,

0:56:140:56:16

so it's a very very good property.

0:56:160:56:19

Steve and his business partner fully intend selling on after

0:56:190:56:22

completion, but could the rental figures sway that decision?

0:56:220:56:25

This property will rent for, per calendar month, for £2,200.

0:56:260:56:31

As a rental figure, you're looking somewhere in the region

0:56:310:56:35

of £1,500 to £1,600 per calendar month.

0:56:350:56:37

That's a yield of almost 8% on their investment. Tempting, Steve?

0:56:370:56:41

No, I would say no, really.

0:56:410:56:43

I think I'm more interested in this, so we can go on and again

0:56:430:56:46

and do something else with the money.

0:56:460:56:48

Otherwise you've got money tied up that you could lose, so no.

0:56:480:56:52

So that's a definite no.

0:56:520:56:54

With £338,000 tied up in this house, what could he

0:56:540:56:58

and his business partner hope to make on a sale?

0:56:580:57:01

This property will sell for, in the current market,

0:57:010:57:03

in thousand pounds, for £425,000.

0:57:030:57:07

As a sale value,

0:57:070:57:08

we're looking somewhere in the region of about 410 to £420,000.

0:57:080:57:13

Taking the top figure, that's a pre tax

0:57:130:57:15

and expenses profit of £87,000.

0:57:150:57:19

Happy with that, Steve?

0:57:190:57:21

The values are great, it really worked out.

0:57:210:57:23

Really looks like it's going to work out well.

0:57:230:57:25

A good profit in there and I look forward to doing it again

0:57:250:57:27

if it works out that well.

0:57:270:57:29

So, are there plans for future joint ventures?

0:57:290:57:32

Yes, we've already planned our next golf trip to

0:57:320:57:35

Tenerife in about three or four months' time.

0:57:350:57:37

So, looking forward to it, should be nice weather

0:57:370:57:39

and a good bunch of lads.

0:57:390:57:42

Yes, could be fun.

0:57:420:57:43

Well, they've already come a fairway down the property

0:57:430:57:45

development line, so let's hope they continue to stay out of the rough.

0:57:450:57:49

Well, as you can see, there are lots of factors that come into play

0:57:560:57:59

when it comes to investing in property.

0:57:590:58:01

Yes, and hopefully we've been able to offer some words of wisdom.

0:58:010:58:04

Yes, and hopefully you might want to take the plunge yourself.

0:58:040:58:08

So make sure you join us next time, for more Homes Under The Hammer.

0:58:080:58:11

-We'll see you then.

-ALL: Goodbye.

0:58:110:58:13

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