Episode 56 Homes Under the Hammer

Hello! Buying at auction doesn't necessarily mean you get a bargain.

But what it does mean is when the hammer goes down, the property is yours.

It can be a great way to buy an investment or a home.

So settle down and listen to some stories of Homes Under The Hammer!

Buying a property is one of the biggest commitments you can ever make.

Particularly in today's market, doing your research is incredibly important.

Exactly. Buying at auction means you'll be spending thousands in the blink of an eye!

So preparation is key.

So how prepared were today's buyers?

In south London there's a flat that could benefit from more than just cosmetic surgery.

It may only be small, but the options are big!

Sometimes it really is just all about location.

You have to buy where people want to live.

This house, being very close to the sea front, ticks that box.

This might be close to a main road, but it's guided at £65,000,

which for a two-bedroomed mid-townhouse ain't bad!

All these properties are being sold at auction. We find out who bought them and what they paid

when they went under the hammer.

The cardinal rule that location is paramount in property

is even more important in today's market.

So you might wonder why I'm in Camberwell

which doesn't even boast its own tube station.

That is King's College, one of London's biggest and busiest hospitals

employing over 6,000 people,

treating nearly 750,000 patients every year.

Just imagine you're a hospital worker faced with long hours on the ward

and then a slog home to where you live.

Wouldn't it be fantastic if you could live really close.

Well, it doesn't get much closer than this.

Up for grabs at auction was a two-bedroom flat

with a guide price of 165,000 quid

and it's just there!

The flat is on the ground floor of this old terraced house

and looks in OK condition.

There are bus links to Brixton tube station

and central London, and a pub on the corner.

Anyone connected with the hospital would love this location.

I guess, strictly speaking, this isn't a flat but a maisonette,

the definition being you don't share an entrance with anybody else.

In fact, these were originally built like this. They haven't been converted, which is great.

What have we got? A large living room there.

A really nice size with a lot of light pouring through the window.

Straight into a good-sized double bedroom.

Not only is it a good size,

but there's a view out to the back.

However, it's not through double-glazed windows

so there's the first thing on the "to do" list.

As it's a ground floor flat,

it does have the bonus of some outside space.

Even if it's not the biggest courtyard in the world,

there's room for a table and chairs.

Like the compact outside space, there's a rather tiny bathroom.

It could do with modernisation,

but it's good to see a bathroom that at least has a bath in it!

What could you do with the layout of this place?

You haven't got masses of room to play with,

but you can be quite creative.

You've got that huge living room at the front,

reasonable size bedroom, toilet and bathroom

into a large kitchen. And a second bedroom at the back.

Not a bad size, but it could do with being a bit bigger.

So what would you do? It depends what you're gonna use the property for.

To live in, maybe you'd want to knock this through for an open plan living area.

If you're thinking about a rental machine, you'd maximise the number of bedrooms.

Make the living room into a bedroom and you've got three bedrooms.

What I like about this, it may only be small, but the options are big!

The options are dependent on what the new owner wants to do with it.

If it was to be a home, I'd want to seriously consider some layout changes.

But as it's more likely that this property will be for the rental market,

the best idea is probably to upgrade what's already here.

What does a local estate agent think?

You have two choices, really.

You make the reception into the second bedroom,

so you get a proper double bedroom,

or you make this room here the second bedroom

which is much smaller and leads off the kitchen. It's a compromise.

You could change the layout here, knock down this wall and make it open plan.

But that's what we call "Marmite". People will love it or hate it!

Some people will be put off immediately by an open plan kitchen and reception,

others will like it. So I'd be cautious about that.

I'd be inclined to leave the layout the same and rent this out as a single let.

You'd be looking circa £1,000 per calendar month.

So, some promising rental values. But what about selling it on?

Once it's completely refurbished, we'd be happy to market this at around 220, 225

to take offers from 210, 215, around there.

An interesting opportunity, whichever way you look at it.

All brought about because of the proximity to that hospital.

And for £165,000 guide price,

I think it was a great one when it went to auction.

Lot 19 is 7, Caldicot Road.

Two-bed ground floor flat. Where would you like to start?

130?

130 on my left.

130.

140.

150.

155. 156?

157.

156 at the back. 157 anywhere?

157. New spot.

158.

159.

160.

161.

162.

161 with you.

162? Lose it?

161. First time, second time.

Third and last time. Have you all done?

Sold. 161. Good buy. Well done.

For £161,000 the new owners of this two-bedroomed flat in Camberwell

are brothers-in-law Mike and George.

They both live in the Camberwell area,

know the location well and have been buying property here for over 20 years.

Mike, George, lovely to meet you both.

-Congratulations.

-Thank you.

-Why did you want to buy the house?

-It's purely by chance that we came across this one.

We actually came to buy a house across the road.

It was only by chance that I happened to check on the internet,

I was doing a bit of research to see what the properties are going for and I came across this one.

So we went along to the auction, and ended up buying it. In the meantime,

-we went to the auction and bought the one opposite!

-Wow!

For similar money.

What's that like? This is a maisonette. Similar?

It's identical. If you walk in, everything is laid out exactly the same as this one.

OK. George, why this area. You've bought not one but two in this area.

-What is it about this road?

-Specifically, for us location is important.

So being that it's right next to King's Hospital, we know that we can rent them out all day long!

They know this is also a good price,

as they paid nearly £63,000 more for a similar place just over a year ago.

As they've been buying properties together for over two decades now,

they've put together a sizeable portfolio.

In fact, Mike is in the process of setting up his own letting agency.

So for former civil engineer and draughtsman Mike,

property development and management has become a full-time career.

Whereas for George, it's still a sideline.

-How does it work between the two of you?

-Michael does nearly everything.

He researches everything, he gets the builders in, he does all the purchasing.

I'm just there if he needs me because I work elsewhere.

-I'm a senior playworker with the Council.

-What's a playworker?

I work with children in an adventure playground.

Basically, he plays and I work! That's the bottom line!

That's the way it's gonna stay!

Financially, is it 50/50? How does it work?

We've got another partner, actually.

A younger brother that's a sleeping partner. He's in the wings.

-So it's a family thing.

-Great.

He sleeps, I play and he works!

We're quite happy with that relationship.

There doesn't seem much bitterness from your point of view.

I take some expenses out!

Despite the recession,

Mike's working harder than ever

as they both see the current downturn in the property market as an opportunity.

There are people out there saying, "Why are you buying property at the moment?"

-What would you say to them?

-Now's the time to buy!

Exactly. No, it's quite the opposite, really.

If you've got cash available, there's no point in putting it in the bank

cos you're only getting 2% on your money.

You might as well buy a property, get the rent and get five, six or ten per cent.

Right. Have you experienced anything like this before?

In previous recessions did you have property then?

We actually started together in the late '80s.

We did buy a substantial property,

not too far away from here.

In those days, we got caught in the recession, negative equity.

It took us probably seven or eight years to recover from that.

So they've had their fingers burnt before

and have become more cautious.

They now know how to make properties work for them, so I'm intrigued to hear their plans for this flat.

There's two avenues.

One, we can rent it to students at the hospital.

It'd probably take three rooms here.

We'll probably get 1,100 a month for it.

We could rent it out privately to a family, professionals,

for about 1,000 a month.

Or, another avenue that we've discussed with George

is possibly a serviced appartment,

where we'd let it out to people coming for treatment at the hospital.

-For how long?

-Two months, three months at a time. Six weeks.

They're regularly going to the hospital for treatment.

This is what I discovered from property we've rented round the corner.

I got a lot of enquiries from people wanting short lets.

-And the figures you can expect from short-term rentals, are they higher?

-Probably 50, 60% higher.

-George, what do you think about that?

-We've talked about it vaguely.

Anything that works, it's fine with me.

No problem with it. If it makes money, I'm happy! Got no problem at all!

This flat certainly offers plenty of scope.

They intend to spend a decent amount on it

with £20,000 earmarked to turn this into a high-specification letting machine.

Mike and George clearly perfectly placed to take on this project

and what better experience than having done an identical property nearby

and making some mistakes - they know what they're doing.

They've lived through a previous property recession

and it went wrong for them, but here they are making the most of the current opportunities.

How will they get on? Are they gonna convert it into a serviced appartment?

Will that work? It'll be an interesting one to follow later in the show.

Herne Bay's heyday as a seaside resort was the late-Victorian era

when the promenades and piers were built.

Today, it's a rather sleepy place, perfect to retire to.

But with London just one-and-a-half hours away and Canterbury seven miles,

it's not a bad work base either.

This is Carlton Hill, literally a five-minute walk from Herne Bay's promenade.

There are some lovely well-kept houses on this street.

And then there's this.

Yes, you've guessed it. This is our auction property.

It always worries me when I see the windows boarded up,

but it is a three-bedroomed detached house with a guide price of 130 to 135,000.

Let's hope it' not a real shocker on the inside.

From a positive point of view, there's plenty of off-road parking

and the boards seem to be hiding a lovely bay window.

Whether there's any glass in it, we'll just have to see.

Well, my first impressions are, yes, these windows are broken,

it needs some attention in here.

But I love 1930s houses and this is a really welcoming hallway. A nice staircase,

lovely ceiling height,

and you've even got a little downstairs loo.

And through here, a large reception room.

Now, once those boards come off the windows,

this will be a fabulous double-aspect room.

The wall here's been knocked down. It's been opened up to create two rooms.

It really works well.

Personally, I'm not keen on this fake Tudor look.

It's not even wood, it's plaster!

It'll be a nightmare to remove.

I do like this fireplace, though.

Sadly, the previous owners have removed the chimney breast

and you can't actually have a real fire here.

But you could have a gas effect one.

It's a great open-plan space

and overall, a really good start.

Some of this may be mock Tudor, but there's no disguising the fact

this place could do with a lot of work.

The catalogue did say it needed total refurbishment

and that's certainly the case, especially at the back.

This is where the house originally ended and they've extended it here to make the dining area.

But I would have knocked this through to have one big open-plan kitchen.

It's disappointing.

This is where you need to spend some money on a big family-sized kitchen

to really finish this house off.

This area is a real mess. It's an unfinished add-on and now contains the remnants of the kitchen.

The only positive is that plumbing and electrics are here

but they might need upgrading too.

And the layout, well, it just doesn't work.

So there's a bit of work needed in the house and a lot of work needed out here too.

There is loads of junk scattered everywhere.

But for a family house, it's ideal.

But I would be looking to get rid of this pond, if there's kids around.

My worry is, as a rental property,

tenants may find this garden hard work to maintain.

But on a positive note, there's lots of sheds and outbuildings to store things in

and it'll be lovely here in the summer.

This garden should be an asset, but as it stands, could be seen as a negative.

Buyers might be put off by the amount of work here.

It needs to be cleared, and then to start with lawned and made low-maintenance.

Then it would appear less daunting.

Upstairs here we've got the bathroom,

in a desperate state.

A double bedroom and a box room with a jungle theme going on.

And in here is the main bedroom with this lovely bay window.

It gives you a good idea of what it'll be like downstairs.

This bedroom has been prepared for decorating - some walls are boarded.

But I can't see anything structurally wrong with this house.

There's no damp, no cracks, it's got gas central heating, new windows.

It just needs a total refurbishment.

I don't think that's going to come cheap, but it could be done in a few months.

Certainly upstairs, at least, some of the groundwork has been done.

The walls have been prepared, there are new sockets,

and flooring is underway in one of the bedrooms.

Te house has a lot going for it. It'll take a fair amount of money to finish it off,

but as the guide price was a competitive 130 to 135,000,

it strikes me as an opportunity to make some profit.

What does the local property expert think?

Three-bedroomed properties in this area are desirable,

particularly because of the location near schools

and the train station and the sea front.

You'd probably look to achieve somewhere near 800 to 850

per calendar month for a property of this type.

In the market we're in at the moment, a challenging market,

to sell any property,

yes, the traditional aspects like the kitchen and bathroom are really important,

but fundamentally price is the most important factor.

What is the all-important price likely to be for this house?

Once renovated, I would say, in the current market conditions,

the resale value of this property would be from around £210,000

to £225,000.

So with that 130 to £135,000 guide price,

this place was an attractive prospect.

The important thing, especially in today's market, is where it is.

Location is paramount.

You've got to buy where people want to live,

and this house, being very close to the sea front, ticks that box.

So who wanted this dated, but detached house?

Let's find out at the auction.

Lot 54. We move to Carlton Hill, Herne Bay.

In fact, we move to 110 Carlton Hill, Herne Bay.

Start me at 130. 130 I have.

130 I'm bid. 135?

135 is bid and 140.

140 is bid.

145? 145 is bid. And 150.

155? 155.

160.

165?

165. And 170. 175?

175.

180? 179, if it helps. Take 1,000?

179, thank you. 180?

180 is bid.

181? No. At 180.

You're all out in the room. At £180,000 I have. 181 do I see?

181 is bid. 182?

I'm selling. 182.

183?

183.

184, Will?

You don't have to walk round just because it's called a mobile!

183 is bid. 184?

No? 183 I have in the room.

183,000, it's being sold for the first time.

At 183,000. Being sold

for the second time at 183,000.

Third and final time at 183,000. Are you all done?

Sold at 183,000 and that's buyer 7155.

Nice to see you. Thank you.

For £183,000, 53,000 over the guide price,

the new owner of the house in Herne Bay is not Alan, who bid at auction,

but his son, Kieran.

With his three brothers, Kieran lives in a bungalow next to Mum and Dad.

So he must be delighted to get his own place!

I work at the butchery shop for my dad.

I've really worked hard all my life since I left school.

I've saved my money well.

I've always wanted to buy a property. My dad's done well on it

and now I've got this place. My dad's lent a lot towards it

but we've finally got a nice place!

Kieran has bought this as an investment. Not necessarily his new home,

but he was following his father's lead about buying property being a wise thing to do.

He also took his advice about what type of house to buy.

In fact, Kieran didn't even view it.

He trusted his dad's judgement and set an upper limit for Dad, Alan, to spend at auction.

Have you bought other houses at auction?

We've bought probably another three or four at auction.

Are you a property developer?

-Not so much a developer, but we've got about 13 properties...

-Wow!

-..what we rent out.

How does the butcher's shop compare to buying and selling property?

I think it's good. I've been there 30-odd years.

I think the property business, I'd rather do things with this than the shop.

Are you happy to be in a position to be able to help your sons?

Yes. Kieran's a really good lad

and I think it's nice to rent this property out

and if he gets married in a few years, they can move in.

What's this?

I haven't got any plans just yet!

Your dad's marrying you off already!

So, not only is Dad his boss at the butcher's,

his bank manager and property advisor,

he now seems to be his wedding planner too!

Is Kieran going to be in control of anything?

Be working on it quite a lot. Days off. I'll come in after work, do a few things.

I have a half-day now and then. I'll come here and I'll work.

Your dad lets you have a half day?!

-Sometimes!

-He didn't on auction day, did he?

-He didn't!

-How hard do you have to work for your dad?

-Very hard. It's a really busy butcher's shop.

What work are you going to be doing in this house? Start with downstairs.

Well, it's going to be obviously painting and decorating the whole place.

We need a new kitchen, a new bathroom.

My brother's got his own gardening firm.

He does really well over it.

He'll do most of the gardening work and we'll help him out.

There's a lot to be done. It needs turfing, some trees to be pruned.

What's your sort of budget? How much money have you got, Kieran, to play with?

I think about six to £8,000. Since we're doing most of the work ourselves.

And my brother's doing a lot of the work with us.

I think six to 8,000 will be plenty.

What's he like to work with? Is he a grafter?

He's very good. I'd rather work with Kieran than anyone else.

We get on really well at the shop

and it's a pleasure to work, both of us together.

So you've got a really nice father/son relationship?

-Yes.

-Yes.

-Do you have a laugh along the way?

-Oh, yes!

-You have some laughs?

-We do!

Kieran, as well as being a butcher, has grown up around property developing.

But this is the first time the project is his very own.

However, with a dad like Alan around to help and inspire him,

and brothers on hand to get stuck in to the work,

I think they'll have this done and dusted in no time.

But will it end up as prime rib, or just offcuts?

Join me later in the programme and you can find out.

Coming up: I've already started my "to do" list with this house!

Definitely one of the first jobs I'd do in this place!

We return to Kent to see if all Kieran's efforts have paid off.

I worked non-stop for months. Working really hard.

But first, in London, did Mike get the short straw?

He sleeps, I play, and he works!

Back in Camberwell, south London,

brothers-in-law Mike and George seem to have their fingers on the pulse of the market.

They snapped up a two-bedroom flat for 161,000

knowing that nearby King's College Hospital could provide a steady supply of tenants.

George works full time as a council playworker,

so project managing the renovation was down to ex-civil engineer and draughtsman, Mike.

He now works full time in the housing market.

Four months on and I'm getting "im-patient"!

Have they successfully operated on this rather jaded flat,

and brought it back to life.

Well, they've definitely gone for the modern, contemporary look here.

There's wooden flooring and slim vertical radiators in the main rooms.

They've made life easier for themselves

by not changing the layout.

It looks as though it's all gone to plan.

With Michael here in charge, it was quite easy

because I knew I didn't have to deal with it!

I've got good, conscientious builders

that when there's a problem, they just get on with it.

They know what I want at the end of the day.

It certainly seems as though his building team have come up trumps.

But perhaps the biggest and most impressive transformation took place in the kitchen.

Well, we decided to revamp the whole kitchen.

As you can see, the slight change from what it was a few months ago.

I wasn't sure what type of kitchen to put in here

cos I wanted to do something a bit different.

So I went down to my local kitchen outlet,

and I said to him, "Jim, what's the most popular range of kitchen you've got at the moment?"

Here we are. This is it.

I think it's great.

I love this kitchen now!

Not only has this flat been designed to have a great look,

it's also been well thought-through in terms of its potential market.

You're probably wondering why the sockets are at this level in the hall.

The logic behind that

is that I cut the cupboard back

so we can allow for a table, a desk, a computer table here

and also we're next to the hospital. We may get somebody that's infirm, in a wheelchair,

and it's wheelchair access as well.

So that's the logic behind that. This is like a work area.

All this attention to detail has paid off

with a tenant already lined up.

And yes, they do work at the hospital, so they were right about the market.

This partnership works almost like a client/builder relationship,

Mike being the project manager, George the client

who just stumps up his share of the money.

We've been partners for over 20 years now

so I know him inside out, he knows me inside out.

We know what we can both get away with

and if he's gone more than 500 quid over budget, there's trouble!

See you later!

Oh, dear! Has Mike's high specification caused problems for the budget?

I think I guesstimated somewhere in the region of 22 to 25,000.

We've come in probably just under... Are you all right?

-Carry on!

-..under 30,000.

Oh, my God!

The partnership has just been dissolved, but that's life!

-No, seriously...

-Nice working with you, George!

Yeah! No, but seriously, I'm very happy with the way he goes about the job.

You can see for yourselves the finish here. I'm very pleased.

That overspend takes their outlay to £190,000.

But in this area of London, that may still represent good value.

They already have a tenant in place

so have they got the best possible deal on the maisonette?

Let's hear from two local estate agents.

Pretty fantastic. They've done a very good job on the property.

A relatively high-spec as well.

They've used wooden floors and not laminate.

It's very important. The original sash windows as well.

The bathroom and kitchen are excellent.

First impressions of the property, it's done to a very good standard.

I love the modern radiators, the flooring's nice. The kitchen is well done, as well.

A little more effort in the garden. A garden is such an asset in this part of London.

More plants, some action going on, cos it looks a bit last-minute.

Apart from that, very nice indeed.

So the garden could certainly be improved.

But has its condition hampered the growth of their £190,000 investment?

I'd be very comfortable with marketing this property

at somewhere between 225 and 230,000 and taking offers from there.

For a sales price, if I put the property on the market,

I'd put it on around the stamp duty level, around 250,000,

expecting to achieve not as much as that, but offers around the 240 level.

Wow! Not bad. A possible 40 to maybe £50,000 profit.

They must be pleased about that!

The prices seem around what we thought anyway.

I suppose, eventually, the prices go up as always.

But we're not looking to sell anyway.

No, this has always been a long-term investment.

For Mike and George, it's all about rental returns.

It should go under offer, rental-wise, anywhere between 1,050 and 1,100 per calendar month.

Per calendar month, if I was to rent this property out,

I would expect to achieve between 950 and £1,000 per calendar month.

Have Mike and George been able to get anywhere near

those rental figures of 950 to £1,100 a month?

Well, if I tell you we've got a lot more than that!

1,250! I've secured it at 1,250.

Pretty amazing. That represents £15,000 a year,

or a yield of nearly 8%, which in current times is pretty impressive.

So it seems that for George and Mike,

the dip in the property market has been uplifting for them at least.

So, what's next?

We've got some money left over to take the bank manager out for lunch and we'll discuss it.

-It's up to the banks.

-Might even take our wives out for lunch!

-You're pushing it now, George!

-OK!

So their next meal ticket may depend on the bank manager.

But this current investment has done anything but leave a bad taste.

In fact, many more like this and they'll be dining out for years to come!

Derby, in the east Midlands, was the birthplace of the Industrial Revolution.

Its central location in England means it's well placed.

The M1 passes nearby

and East Midlands airport is about 15 miles away.

But of course, good transport links also mean lots of traffic.

This is Kingsway, a suburb of Derby, two miles outside the city centre.

It does have the A38, the Derby ringroad, slicing through the middle of it,

which could mean it's a bit noisy.

Luckily, the house I'm here to see is set on a nice bit of greenery

so it's not as bad as being on the side of the road.

At a guide price of 65,000 quid for a two-bedroom mid townhouse ain't bad!

It's not the prettiest of townhouses

and, worryingly, has a Harry Potter-style lightning scar on the brickwork!

The worst-case scenario is that this is a crack that's been repaired

but I think it's just some repointing done in a different coloured mortar.

Hopefully, it can be magicked away quite easily!

So, what does your money buy you?

Well, an ex-local authority property which, as you may know, I really like.

They're solidly built, got a lot of space like extra cupboards.

But this one, as you walk through the door, it is kind of dated.

Things like the stairway give it all away.

But good sized rooms. The living room, some interesting features

which you could play with. Some you definitely need to sort out.

Through to a very useful separate dining area

or family living area which adjoins the kitchen.

Now that is very practical.

That gets better when you go out the back. You've got a utility room and downstairs loo.

So all in all, I already like it.

I reckon the kitchen units are salvageable,

but the decor needs updating.

The floors need to be re-carpeted,

but there are no signs that that really was a crack outside.

Out the back here as I said earlier, a very useful bit of extra space.

A utility room, downstairs loo

and what's really good is that they've enclosed this area

with this conservatory.

It's not the highest quality, but it gives you this extra bit of space.

Then a door out onto the back garden.

Not a bad size, and there's even a magnolia tree.

Which is, of course, where you get the paint from!

I am joking, of course! Everyone knows you get paint from a DIY store!

Upstairs is in much the same condition

with two bedrooms which need refreshing with a lick of paint, magnolia or otherwise!

Up here, two good sized double bedrooms. That's all OK.

But it goes horribly wrong when you come to the bathroom.

To call it a bathroom isn't strictly true. All it's got is a shower.

Call me old-fashioned, but in a house like this, you really need to have a bath.

The thing is, there is room in this bathroom to do it.

All you do is jiggle around these units, or replace them cos they're dated,

put a nice suite in here, get a bath in and job done.

It's one of the first jobs I'd do in this place.

But having to update bathrooms and kitchens is no great shock.

Most house-buyers would expect to do that anyway.

So, all in all, not bad, and the outside space is good for a family as well.

But does this fit the home-buyers' market, or is it best viewed as a rental property?

What can the auctioneer who sold the house tell us about it?

The history to this, as far as I'm aware, is it's been rented out for some time.

I think the people who owned it

decided they'd either had enough of renting it

or they could use the capital better elsewhere.

In essence, the property's fine. There's a few historic settlement cracks,

but I don't think that would be detrimental.

It's not in bad shape really. Just wants a bit of TLC.

This obviously has rental potential,

and has been a popular student let in the past. So, what could it earn?

I'd say its rental value is in the region of £450 a calendar month.

And a re-sale value?

Assuming it's been updated in one or two areas and put back on the market,

in today's market you'd probably achieve about 85,000 for it.

So, nothing spectacular here.

But it should be a good, solid investment.

Well, a bit dated, and possibly not the prettiest of houses from the outside.

Definitely a case of function over form.

But do the numbers stack up? They probably do.

Let's see who agreed with me when it went to auction.

We move on to lot number 12.

A mid townhouse with two-bedroomed accommodation

and other rooms as detailed in your catalogue.

Where do you want to be on this one? Start me where you will. 68?

60 I have. Thank you. At £60,000.

At 61.

61 is bid. 62.

62 is bid. 63, sir? 63.

63. Four. 64,000.

65 is bid. At 65.

66? It's in the market.

No mistakes about that. We're here to sell it. 65,000 I have. 66?

At £65,000. Seated bid.

At 65,000. Any higher bid? All done with it? For the first time at 65.

For the second time at 65. Third and last opportunity for Seymour Close.

At £65,000.

Yours, sir, at 65,000. Thank you.

For exactly the guide price of 65,000,

the new owners of the Derby house are young couple Jennifer and Jonathan.

I met up with them to find out why they wanted this particular property.

Because Jen used to live here.

-What?!

-Yes, it used to be my student house.

-So you were a student where, at Derby?

-Derby.

Yep, and I lived here for a year while I was studying there.

So how did you rediscover it?

Um, we were meant to be buying a car

and I went on the internet to look for various things and stumbled across this!

At which bit of the search did you mis-type car to house?

Not quite sure!

-Jen likes to keep an eye on houses and prices.

-I don't like to let anything slip past.

-Right.

-So we decided to put the car on hold for a bit

and buy a house instead!

-Were you looking to buy a very expensive car?

-No, no!

Buying something you've previously lived in is a smart move.

You know the area and, more importantly,

you should have a good idea of the condition of the house.

But for Jennifer and Jonathan it was five years ago,

and as a student I didn't take much notice of the roof

or whether the walls were cracking. As long as the fridge worked and there was heating, it was fine!

Has it changed since you were here?

Well, there was carpet down, and lots of student junk!

But other than that, no.

-You obviously enjoyed your time here and thought it was an enjoyable house to live in.

-Yeah,

-it was nice. It's got some quite nice memories, hasn't it?

-Yes.

-Did you ever visit the house when...

-Yeah, I practically lived here!

It took you a while to reveal that little fact!

-You knew it as well!

-Yeah.

-Fantastic.

-It was when we started going out.

Here you are, back in the house where you courted.

If that's a modern term!

-Yeah, I guess you could say that, really.

-And now are you married?

-Yeah.

-Two-and-a-half years.

-Where have you been living in the meantime? Renting?

-Renting, yeah.

It's local. Another house in Derby.

But this effectively is your first proper home since you got married.

Yeah, it was quite exciting, getting the keys.

This house was obviously a big part of their lives in the past.

Now it's gonna play an important role in their future.

-What are you gonna do to it?

-You don't like it as it is?

-Well, no, actually, it's fine.

-If you put some carpets down...

-We'll replace the carpets with the same ones that are there.

-Just a newer ver...

-Yeah (!)

We're gonna replace all the double glazing apart from the doors.

We're going to replace all the carpets

and put down laminate flooring in the dining room and hallway.

We're gonna decorate it throughout.

There'll need to be a new hob and new oven in the kitchen as well

-cos the units in there aren't serviceable.

-How much have you set aside to do the work?

We're looking at about five to £6,000 before moving in.

And there might be a little bit more afterwards. My brother is a plumber, so he can sort out the bathroom.

But we're hoping to get everything done in the next five to six weeks.

That's the plan!

Well, it's a lovely story. Funny the way things turn out, isn't it?

Yeah. It's certainly not what we expected to happen, is it?

Family and friends were shocked when I said, "Remember the house I used to live in? We've just bought it!"

Well, how appropriate,

this place being bought by an ex-student who used to rent it.

But Jonathan and Jennifer also go to prove

that first-time buyers can still get a mortgage and get a lovely home like this as their first place.

How are they gonna get on turning it into their very own home?

Find out later in the show.

We never quite know how the renovations are going to go.

For some properties, a quick lick of paint and a new carpet is all that's required.

-For others, it's a full renovation.

-So which one is it going to be?

A fix-up job or the full works? Let's find out.

The name Kent derives from the old English word for a corner of land.

It was here that Kieran, who works as a butcher alongside his dad Alan

hoped to turn round the fortunes of a rather dilapidated

three-bedroom detached house.

But finding the time to do it was going to be tricky.

I'm gonna come here after work, do a few things.

I have a half day now and then and I'll come in here and work.

-Your dad lets you have a half day?!

-Sometimes!

As Alan helped out Kieran with some of the finances,

I guess he was also a "steak"-holder in the house!

So it was also in his interests to let Kieran have some time off.

Kieran has three other brothers to call on

and no real deadline to meet.

So, five months on, had he turned the house into a prime piece of real estate?

Ah, that's more like it!

The front now has that splendid Edwardian look back again

and with the addition of the new porch and a tidied-up front drive,

it's certainly greatly improved.

And inside, medieval has made way for modern.

Not only did they update and modernise the kitchen,

but they found a clever way of enlarging it too.

When we viewed the property, it had a wall going across here

and it made the kitchen very small.

We wanted a slightly larger kitchen

so we decided to open this wall up

and make the kitchen L-shaped.

We was gonna take the other wall out,

but that was a load-bearing wall.

We're quite happy with the outcome

cos now you can come in from the hallway or from the lounge.

Downstairs looks really impressive

and that continues upstairs with the three bedrooms.

With the preparation work already done, the master bedroom has now been finished off.

The jungle room has a less wild decor.

And the other bedroom now leaves you feeling less blue!

Now that the bathroom's been completely revamped,

that's just left the large back garden to knock into shape.

When we first came here, this garden was a complete mess.

There was rubbish everywhere, it was horrible with a horrible fish pond,

horrible garden sheds over there, it was awful.

We got rid of the fish pond firstly.

We decided to recycle the sleepers it was made out of to make a border and step going round there.

Then we got rid of... There was so much rubbish.

There was ten tonnes of rubble.

There was six tonnes of tree cuttings around here.

All we have to do now is pick up these slabs and re-lay them.

We're gonna lay the rest of the slabs around the patio area.

That's the garden finished then.

Despite the fact this was mainly Kieran's purchase,

his father Alan was more experienced at property development.

So who was chief honcho here?

My dad was mainly in charge of what was actually happening here and there.

I was really just the main worker.

On this job, we've all worked together and we've all helped.

Daniel and Kieran, they've all come round helping.

I've learnt quite a lot of things from my father.

I've learnt how to put the kitchen,

and learnt a lot about tiling and things like that.

How to put in... I learnt about radiators and the skirting. All sorts of things.

Kieran had the difficult balancing act of spending enough time here and working at his father's shop.

It was quite awkward getting the work in.

I work full-time in the butcher's shop and I was working long hours there.

Half six in the morning till five o'clock.

I was taking half days now and then and working on my days off.

I was working non-stop for months, I was, working really hard.

Kieran and Alan bought this house as an investment,

probably to rent out. So is that still the plan?

I'm not too sure what we're gonna do with the property yet.

We've thought about renting it

but we're gonna see what the valuation is today.

I think at first my idea was that we were gonna buy the house,

just do it up and sell it to try to make a bit of profit

and then buy another house.

But I just love the house so much, it would be nice to live here in a few years' time.

In order for that to happen, Kieran will need the house to generate a good rental income.

Kieran and Alan paid 183,000 for it

and have now spent £14,000 to get this far.

So they have nearly £200,000 invested here.

Is it a good investment?

What's the opinion of two local estate agents?

First thoughts are it's a good size living room.

Very bright. And a good size garden.

First impressions when I come into the house now it's all finished

is, "What a difference!" A lot brighter, lighter.

Nice new entrance with the porch.

I like the white walls. Everything is fresh and open.

Some positive comments there.

But for Kieran to hang on to this, he needs a rental return with a yield of about five per cent,

or approximately £800 a month.

In this current market, the rental price for this property

would fall between £775 and £825 per calendar month.

If I was renting this out today, I'd suggest 800 to 850 per calendar month.

So plan A would be just about feasible with the rent just covering the costs.

But would they be better off selling their £200,000 investment?

Re-sale valuation, current market, our valuation would be £225,000.

Re-sale valuation in the current market is between 210 to £220,000.

That would see Alan and Kieran making a small profit

of perhaps £20,000. How do they feel about that?

Yeah, very good. Very good.

-Very pleased with that.

-Yeah, it's good.

So will the plan change now?

Is this a case of take the money and run, with a small profit?

No, I think we'll rent the property out for the next few years and see how it goes.

If Kieran gets married and wants to move in, all the better!

Alan definitely seems pretty keen to marry Kieran off!

But for now he'll have to settle for the way the family married their skills together

to turn this house around.

I'm very pleased with the outcome of the house, what we've accomplished.

I think it's quite impressive.

We've worked hard and it's paid off. I'm really happy.

So, far from butchering this house,

Alan, Kieran and the rest of the family have turned this into a cut above the rest!

Jennifer and Jonathan had snapped up this ordinary-looking two-bed terraced house in Derby

for £65,000.

It seemed like the perfect purchase as a starter home

but for them, this property was so much more.

-It used to be my student house.

-You were a student where?

-Derby, yes.

-It's got some nice memories, hasn't it?

-Yes.

Did you ever visit the house?

-Yeah, I practically lived here as well!

-Did you?

So this is a special place to Jonathan and Jennifer.

But sometimes in reality, things don't quite live up to the memory.

So has this nostalgic return been the right move for them?

Well, just four months later, we're back to see.

It looks as though they may be holding on to the memories of the past too much,

as there don't really seem to be too many changes.

Though there have been some alterations in the living room.

OK, we've moved the door in here. It was in the middle of the room before.

Now we've moved it to the side because the furniture fits better.

We stripped the wallpaper off the ceiling, decorated the walls,

carpeted in here and the windows have been replaced as with the rest of the house.

New light fitting, curtains and we've got a fire on order.

When that's done, we'll be happy really with this room.

They're not too far away from completing the lounge.

And they've also just about finished the master bedroom.

We've painted the walls in a sort of milky colour.

The ceiling has been repainted.

The windows have all been replaced over here and over here.

New carpets.

So yeah,

this room's basically pretty liveable.

And we're happy with it.

Of course, this was Jennifer's student digs

when she and Jonathan were at university

and when they first started going out together.

How does it feel to be back living in the house five years on?

It's nice to be back.

I think we've managed to change it sufficiently so it feels more like a grown-up adult house,

than a student pad.

When you were here as a student, it was quite a different house.

Because you had a bedroom down here in this room,

and two other people living upstairs as well,

so it's not your own space, or our own space.

And now it is, so it does feel quite different.

-Yep.

-Apart from the fact it doesn't look the same now, either.

And we don't have to pay rent every month!

No rent, but it is now their own money going towards the upkeep and renovations.

Getting the work done isn't down to a landlord to sort out.

It's up to them now!

It's been us, but we've had a lot of help from family.

Yeah. They've been very hands-on with us.

We wouldn't have got to where we've got now

-if we hadn't had that help.

-No.

Jennifer and Jonathan worked on the house for five to six weeks before moving in.

That's when they made the bulk of the progress.

Since then, things have slowed down a bit and there are still a few jobs to do.

We've still got the dining room to do.

There's a bit of a problem in that some of the plasterwork needs fixing.

We're gonna put a bath into the bathroom to give us a proper bathroom

instead of just a shower. And then...

Redecorate the hallway.

The hallway. And tackle the back garden.

-Yep.

-That's a job for the summer.

And a new fire in here as well to complete it all.

I guess they're about half-way there.

Is that reflected in their costs to date?

We've kept pretty much to the original budget of five to 6,000 before moving in.

But obviously there's still more work to do.

So I think we'll end up spending more than what we'd hoped to originally.

But if we can get a bathroom put in for maybe about £1,000 or not too much more than that,

then we shouldn't go too much over.

They paid 65,000 for the house.

Assuming a budget of around 8,000

they shouldn't exceed 75,000.

So, are there signs that their first property purchase was a sound one?

What do two local estate agents think?

I think what they've done so far has been their own taste

but they've done it nicely. Obviously it's a rolling programme.

They've done it bit by bit and as they would like to see it.

There's not a lot of work been done so far in the house.

Definitely a work-in-progress project.

But they've put new windows in which look like nice quality

and they're making a start.

After costs and additional finishing expenses,

Jonathan and Jennifer are likely to spend around 75 grand

upgrading their student digs.

Was it money well spent?

When finished off, it will have a value of about £85,000.

Once the house is finished, if they decided to sell,

it should fetch a price of around £85,000.

That's all right, a possible £10,000 profit.

That's pretty good news. How do they feel about that?

We were probably hoping it would go nearer 90.

But the market has taken a bit of a tumble at the moment

so it's still a good return for us.

Yes. We're not really surprised at that, to be fair.

It's still a good investment for us.

So, yeah!

Has their first taste of property ownership

given them an appetite for more?

I think at some stage in the future we might look at developing.

We'd like to, but at the moment it wouldn't be very practical

but maybe in the future.

I think we need to finish one house before moving on to the next!

They do say you should never go back as it can never be the same again.

But in this case, Jennifer and Jonathan seem to have profited

from a return to pastures old.

And it's been a very happy homecoming.

Join us next time for another ride on the renovation rollercoaster!

-We'll see you then!

-Goodbye!

-Goodbye!

Subtitles by Red Bee Media Ltd