Episode 64 Homes Under the Hammer


Episode 64

Martin Roberts and Lucy Alexander visit a house in Perthshire, a property in Hampshire and a three-bed house in Derby, learning how much they sold for at auction.


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Transcript


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Hello. Now, if you're buying property,

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you'll want to make sure that you're buying at the right price. Not always easy!

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So how do you know what the market is doing? Will it rise or will it fall?

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Well, one way is to take a trip to your local auction house.

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Now, auctions are very exciting and it can be quite tempting to buy,

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but to stand the best chance of success you need to do your homework first.

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So let's see what properties created interest on today's programme.

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I'm in my element in this garden in Perthshire.

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One of the nicest things is you've got your own little summer house. I love sheds and summer houses!

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In Hampshire, is there potential in this rather slim-line property?

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One room, do with it what you will!

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And I think this three-bed house in Derby needs a bit of reorganising.

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Because, as it is, it's all a bit "corridory"!

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All these properties have been sold at auction.

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We find out who bought them and for how much when they went under the hammer!

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Sold!

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-BAGPIPES PLAY

-Misty hills,

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ancient royal palaces and roaming wildlife. Yes! We are in the heart of Scotland in Perthshire,

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specifically Scone, a village near Perth.

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It's just an hour's drive to Edinburgh and half an hour to Dundee.

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It's home to the famous Scone Palace where the Kings of Scotland were once crowned.

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But, hopefully, the property I'm here to see won't cost a king's ransom!

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So, not surprisingly, Scone is a really desirable place to live.

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So when you hear about a five-bedroom detached property up for auction,

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with a guide price of £305,000-£315,000, it's time to get very excited.

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And you know what? From the outside, it looks pretty big!

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Fantastic!

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And there's loads of space out the front to park a couple of cars!

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It's all promising so far.

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Well, inside this place does not disappoint. You come through the door and it is huge.

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Lots of rooms going all over the place. You've got a downstairs loo, there, kitchen there,

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dining room, whatever it is, over that way. It's so big that you might even consider splitting the house up

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maybe to create a granny annex or just a separate little flat.

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But, on the other hand, why not just make the most of it as it is? I mean, look at this lounge!

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It's absolutely huge! What a wonderful family home this would make.

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It's great. You've even got your own fireplace here.

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I can just imagine the invites from the local gentry there to the local garden party...

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yeah...wonderful.

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# Let's have a party... #

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OK, so I'm getting a little bit carried away,

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but it's tempting to imagine this house

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brimming with friends and family at parties and social occasions, but how about upstairs?

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Well, upstairs here, the space just goes on and on and on.

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I mean, there are five bedrooms, a family bathroom, there's a little en-suite here.

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I mean, it's just superb. What is there not to like about this property?

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In fact, you know what? If Scone Palace up the road was full, this place would be fit for a king!

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And out the back, there's plenty of space for a royal garden party!

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Well, at the rear of the property there is a really good-sized garden.

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In fact, the whole house is surrounded by some really nice patches of garden.

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At the side there, there's another bit.

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Across the road, actually, you own a small bit of land which you could use as a vegetable plot, perhaps,

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but, more importantly, it preserves your view

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across to the playing fields or whatever that is over there.

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But, in terms of the garden,

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one of the nicest things is you've got your own little summer house. I love sheds and summer houses!

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So this just tops it off!

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# And the summer house

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# Where we found new games to play... #

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I'm certainly enjoying playing with the remote control for the garage round the front.

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This place really has it all...

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spacious rooms, a huge garden, beautiful surroundings,

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and all at a guide price of between £305,000 and £315,000.

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But, to get a second opinion,

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I've invited the auctioneer who sold the property to give me his thoughts on it.

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Scone's a village about two miles north of Perth,

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and Perth itself is an hour from Edinburgh.

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There's a railway station, it's got good links,

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it's a good jumping-off point also to Dundee which is only about half-an-hour to the east.

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My first impression of the property was that it was a good-sized family house,

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plenty of potential here. A total of five bedrooms, couple of bathrooms,

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good-sized family/public accommodation ,

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really nice house, well-built.

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The house itself looks as though it could do with a coat of paint on the outside,

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but otherwise it's in very good condition.

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It's got a nice bit of mature garden ground to the front and rear.

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There is also a small area of ground across the road, directly opposite the house,

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which doesn't look big enough to do any development on,

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but has the benefit of securing the view across the open playing fields.

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The house doesn't need much work doing to it,

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just a spruce-up with some new fresh paint and decoration.

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So, what could it resell for once the work has been done?

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I would have thought we're probably looking at £350,000, perhaps £360,000, once it's all done up.

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What if the purchaser wanted to rent it out?

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In terms of rental value, I'm not sure how strong the market would be for this type of property.

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It would have to be an executive let,

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and I would have thought you must be talking in terms of perhaps £1,000 a month.

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So, a lot of property for the money, and the nice thing is it's pretty much ready to move in as it is.

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It would make a great family home. Not only have you got the five bedrooms,

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you've got all those separate areas downstairs for the kids to be in one bit, Mum and Dad in the others.

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No, it's brilliant. A bit of work to do inside, especially getting rid of all the woodchip,

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but for £305,000-£315,000, a great one to go for. Let's see who spotted it at the auction.

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OK, lot 21.

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What are we going to say for this? 250?

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Thank you, sir. 250. Sitting down in the front. 250.

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Do I have 260 anywhere?

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I've got 250... 260. Thank you, sir. 260.

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270?

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It's against you, sir. 270?

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270.

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280?

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280.

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290? Take a half at 285?

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285? 285.

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290?

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290.

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295? Shaking his head.

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It's with you, sir, at 290. 295 anywhere?

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295 at the back. 295.

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300?

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300. Thank you, sir. 300.

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305? 305?

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No further bids at the back at the moment at 305...

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At 300, it's with you, sir. It's against you, sir, in the black jacket down here.

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I'm going to sell at 300,000 if that's the best we can do.

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I'm looking for 305. I'll take 1 if it helps anybody.

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301 anywhere?

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We all done? At £300,000,

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going once, twice, third and final time.

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Gentleman halfway back.

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That successful bid of £300,000 was from Lee and his wife Kawa.

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Kawa, who is originally from South Korea, and Lee already live in Scone

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and have had their eye on this property for a while.

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# The more I see you

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# The more I want you... #

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Lee's an offshore electrician,

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while Kawa is a full-time mum to their two children, Conner and Kayleigh.

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Along with their two dogs, this house is going to be a bustling family home.

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I met them back at the property to find out more.

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Lee, Kawa, lovely to meet you both. Congratulations. How was the auction for you?

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Daunting! First one I've done, the biggest purchase I'll probably make and it was quite scary.

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It was very rushed, I would say...

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from us seeing the house, doing a viewing... We then went away on our anniversary to Paris,

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came back from Paris on the Monday,

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got the viewing and the survey...

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and finally...got the solicitor on the Tuesday, and the auction was on the Wednesday,

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so it was a bit of a rush.

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It may have been a rush, but it turned out brilliantly for them in the end,

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since they paid just £300,000. That was £5,000 under the lower guide price.

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Not bad for your first time at auction!

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So, how did you two meet?

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I was working in a shipyard, Daewoo Shipyard, over in South Korea,

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-commissioning to oil rigs...

-Right.

-And I met Kawa over there.

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-Wow!

-So it was just fell in love and then she came back over to the UK with me.

-Wow!

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-Fantastic! Do you know the area well, then?

-We've lived in Scone for nine years now,

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so we've just moved up the road, just to a bigger house, basically. We love the area.

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-A bigger house and closer to the school as well.

-Yeah.

-The school's right in front of the house.

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-The school your children go to is right across the green?

-Across the road, yeah.

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So basically they just go across the street and into school and come back for lunch.

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They're going to love it.

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-So have they seen the house?

-They love the space.

-They love it.

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And the bathroom as well. They always argue about the bathroom, the one bathroom,

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but now there's three, so I think they're going to be happier.

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-So no more waiting outside, banging on the door?

-No!

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I think one of the best things is we've got the spare bedroom

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for my mother to come so she can baby-sit more.

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-Best thing!

-That's the best thing.

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Perfect! There's even room for a babysitting grandma when she comes to visit.

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This house is perfect for a family.

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Loads of space for the two kids to grow up in, especially that garden.

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Lee and Kawa hope to move in as soon as possible and rent out their current house.

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They'll do the renovations while they live here.

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The work may be a little stop and start with their busy lifestyle,

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so they reckon it'll take six months to do up.

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What exactly are they planning to do here?

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Kawa wants to...that wall behind us...she wanted to open-plan it,

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but I prefer to have two separate rooms,

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so we've come to a compromise. We're going to put in glass opening doors between here and the dining room,

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cos we do have quite a lot of parties and entertain quite a lot,

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so we want to have the ability to extend into that room.

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That sounds like a great compromise.

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A glass door should allow plenty of natural light to flood into the kitchen

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from those south-facing dining-room windows.

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And there are exciting plans for those bathrooms too.

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-The bathrooms we're wanting to make into wetrooms...

-All the bathrooms.

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-All tiles.

-All tiled, yeah.

-Cos in Korea that's what they have. It's more efficient and practical.

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-And who's going to do the work?

-I'm going to do a lot.

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I've got friends who are in the building trade as well. My best friend's a joiner,

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so he's going to come in and do a lot of work with me.

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I'm, obviously, an electrical engineer, I'm going to do the electrical side of things.

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Kawa's going to be doing some painting, I think.

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-So...

-Your uncle's going to help us.

-Yeah, my uncle's an architect,

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so he's going to help us with all the plans and anything we need.

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Seems like they're sorted, then. And with a budget of between £10,000 and £15,000,

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there should be more than enough money in the pot.

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Well, what a great property this is for Lee, Kawa and their family.

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Even the dogs can have their own room now!

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But, you know what? Doing this place up while living in it is never going to be easy,

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so find out how they get on turning this house into a home later in the show.

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I'm in Totton in Hampshire. Its main claim to fame is that is used to be the largest village in England,

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until it was promoted to being a town in 1974.

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# This is my kinda town... #

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Totton has great road and rail links,

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handy for commuting to nearby Southampton, Bournemouth or Salisbury.

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The property I'm here to see has had a somewhat varied history.

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Now, it's been a bookie's, a cobbler's, a dentist's and, finally, a sandwich shop!

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Well, today it's empty and it was up for auction with a guide price of £35,000-£40,000.

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Let's get inside and see if it still cuts the mustard!

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# I'm hungry for something

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# But it seems so far away

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# That sentimental sandwich

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# That we shared one day... #

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Even though it looks like it's got a great spot on the High Street,

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the fact that so many different business have come and gone over the years

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does make me concerned about how good passing trade is around here.

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First impressions?

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It's really small in here!

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Not much room at all. You can see this is the old counter where they would have served the sandwiches.

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Around here would have been where they prepared the sandwiches and done a little bit of washing-up.

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And that's really it!

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Not much more I can tell you. One room, do with it what you will!

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I'm going to go upstairs.

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You certainly wouldn't want to be running up and down these steep stairs

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for jars of mayonnaise on a busy lunchtime.

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So, up the narrowest stairs ever and it doesn't get any bigger up here!

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You've got a little loo and a sink, but I would say it's a perfect little office space,

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because you've got nice, big windows over here. So what could you do here?

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Well, it's got A1 usage already, so that covers your shops, hairdresser's, sandwich bars,

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although your punters couldn't eat their food on the premises.

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It is a pretty broad category and it opens up plenty of options,

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but it's not all about what you can do, it's about what you should do from a business perspective.

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So, what is the best use for this little shop?

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To find the answer to that, I think I need to go back outside.

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As with many small towns, the building of the local bypass and out-of-town retail parks

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has affected shops in the centre of Totton.

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It certainly doesn't help that this property doesn't have any on-street parking for customers.

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So this may be the High Street,

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but I think that's really by name only,

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because it's hardly a busy, bustling street, and that impacts on your options here.

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You've got some houses, a few industrial buildings,

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but little passing trade which may be why that sandwich shop is no more.

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You really need to make this little commercial unit a destination

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and that is the challenge for whoever takes this on.

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# Take on me... Take on me

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# Take me on... Take on me... #

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At that guide price of £35,000-£40,000,

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if they get it right, it could pay great dividends.

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I asked along a local property expert to tell us what he thought.

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The High Street in Totton,

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like a lot of High Streets, probably it's become a secondary location.

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It's really now more associated with small sort of commercial businesses.

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The space is compact. Obviously the property's sort of like a one-up one-down arrangement.

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There's no wasted space. You've got the storage room upstairs and a WC,

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and the main preparation area, surface area downstairs.

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What kind of business might succeed on this spot?

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I think the sort of business that this is suited for is something that's got to draw in local trade,

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cos there are a lot of businesses, more so commercial, round here.

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So you're not going to get the footfall that the normal High Street would have got

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with shoppers and that sort of thing, really.

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So you've got to aim at something that's going to appeal to local businesses,

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ie, their staff, that sort of thing.

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It's not an easy business proposition,

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but I think anybody willing to get really stuck in and work hard can make this business venture work.

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So what valuation would he give the property as it stands?

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Value for sale at the moment is probably between £35,000-£40,000.

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For rental purposes you're probably looking at around £350 per calendar month.

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In the grand scheme of things, this is a cheap investment.

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Now, it doesn't need much work, but it does need imagination to make it a successful business.

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Let's see which bright spark bought it at the auction.

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Lot number 8, a single commercial unit over two floors.

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Opening bidder at 30? Do we have a bidder of £30,000?

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30,000 on the steps I have. 30,000 underway. Now I'll take this up in ones.

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Looking for 31. I have a bid of 30.

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31,000 I have got here, down here on my left. 31. 32?

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No. 32 is no.

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32? Somebody come? 32,000. Thank you. 32. It's all down this left-hand side. 33.

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33 we have. 4?

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34. Thank you.

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35? 35's there. 36?

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36 we have. 7?

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Shake of the head. 36,000.

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Needs 37,000 from somewhere else.

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Back in at 37! Just chatting. 37. 38? Keep it on ones. Might make it do it.

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38? Yeah?

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38,000 we've got.

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39? Shaking the head now. Told you it might do it. 38,000 I have got.

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Anyone else wish to jump in? 38,000.

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You are... 39.

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39. Came in late.

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Round it up to 40, might do the job. Took a long time coming back at that one.

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40,000? Yeah.

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40,000 we have got. 40,000 we have at the rear. Are you back in?

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I'll give you the half now.

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No? 40's with you, then, sir. Give anyone else a half a chance. It's at £40,000.

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Make no mistake, we're in the room and selling. £40,000 that I have on my left-hand side for the first...

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£40,000 for the second...

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40,000, coming back, third and final time...

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Well done. Your number? 40,000. Your number, please, sir.

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They got there in the end. That successful bid of £40,000 came from brothers Jason and James.

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They live locally and have bought this slim property, hoping for a fat return.

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But what exactly have they got planned for it? I went in search of the answer.

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# I've got a great idea

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# Wouldn't you like to know?

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# You probably can't bear it

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# So I guess I'll have to share it

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# I thought of it a moment ago... #

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-Guys, congratulations.

-Thank you.

-Well done.

0:20:070:20:10

£40,000 you paid. Quite a diddy little place, though, isn't it?

0:20:100:20:14

-Just a little bit!

-Yes, it's quite perky, yes.

-Just surprised we all got in here today.

0:20:140:20:18

So, first things first, what are you going to do with this? Why have you bought it?

0:20:180:20:23

Well, we thought it was a good investment at the price we paid.

0:20:230:20:28

And we're going to turn it, hopefully, into a barber's shop.

0:20:280:20:31

-Really?

-Mm-hm.

-Wow! So what's your background? Are you hairdressers?

-No, no, definitely not.

0:20:310:20:36

I'm a motor trader. Been in the business for about 20 years now.

0:20:360:20:42

-James?

-My game is transport. I've got a small transport company.

0:20:420:20:46

And this was just another outlet I thought I'd have a go at.

0:20:460:20:50

So, chaps, call me stupid... why have you decided to turn this into a barber's shop?

0:20:500:20:55

Well, it is kind of small to do anything else really with,

0:20:550:20:57

and we thought it we could take out the chimney breast here and give us some width,

0:20:570:21:03

there's room for two chairs here. Make it sort of quite trendy, nice tiled floors,

0:21:030:21:08

-nice full-length mirror, nice lighting...

-An inviting place

0:21:080:21:11

for the younger and older generation to come in and have their hair cut.

0:21:110:21:16

But you know nothing about hairdressing. Do you know any barbers?

0:21:160:21:19

-A couple of people have come forward. They want to have a go.

-We're starting to learn about it.

0:21:190:21:23

We'll find out as we go along. But we just wanted a place where we've not got to run it, basically,

0:21:230:21:31

it can run itself.

0:21:310:21:32

To help make it the snazziest barber's in town, they've set aside £5,000

0:21:330:21:38

plus an extra 1,000 as contingency. And they think they'll be finished in just one month.

0:21:380:21:44

So what are you going to do with the upstairs? You've got the narrowest staircase I think I've ever seen!

0:21:440:21:49

-I could just about get up there myself.

-It is very narrow.

0:21:490:21:52

We're going to gut the place upstairs as well, go right through it, pretty it up,

0:21:520:21:57

and I think we're both going to use it as an office for ourselves.

0:21:570:22:00

It's a handy one to have. Get rid of the paperwork at home and get the third bedroom back.

0:22:000:22:04

It might be a handy office space, but will the boys be doing much business?

0:22:040:22:09

I'm still a little worried about passing trade,

0:22:090:22:11

so do they think they'll be able to rustle up enough customers?

0:22:110:22:16

Well, we're hoping to, because just down the road there's a lorry park there,

0:22:170:22:21

we've got the local school not far away, a little bit busy up and down,

0:22:210:22:25

-and, hopefully, we should pick up some passing trade.

-Do you ever wake up and think,

0:22:250:22:28

"Hold on a minute! What are we doing? Are we really going to make this a success?"

0:22:280:22:32

No, we feel confident that we can do it and it'll be a success.

0:22:320:22:36

Well, I'm not worried about the lads' confidence or their business plan,

0:22:400:22:43

I'm not even worried about the renovation work they're going to do,

0:22:430:22:47

but I am worried about who's going to cut the hair!

0:22:470:22:50

# Who cut your hair?

0:22:500:22:54

# Who cut your hair...? #

0:22:540:22:56

So, have you got the staff ready? Are they ready, standing by?

0:22:560:23:01

-We've got one or two.

-You've got one or two? No, seriously, have you got the people to do the haircuts?

0:23:010:23:07

We've got someone who's really interested and wants to come and join us and give it a go.

0:23:070:23:11

-We need your men ready to shave heads standing by.

-They'll be here!

-It's sweet!

0:23:110:23:14

Once they see it all done, ready to go, been on your show...

0:23:140:23:18

-You won't be able to keep them away!

-They'll be in!

-Chaps, you're obviously really excited.

0:23:180:23:22

-It's been lovely meeting you both today.

-Thank you.

-Thank you so much.

-Thank you.

-Good luck.

0:23:220:23:29

So it's free haircuts all round!

0:23:290:23:31

Now I think Jason and James have got good plans for this place, but will it make money?

0:23:310:23:36

Well, that's not cut and dried.

0:23:360:23:38

You can find out if it's going to be a permanent success or a close shave later on in the show.

0:23:380:23:45

Coming up, I'm still perplexed by the layout of this property in Derby.

0:23:460:23:51

Again, very, very strange and not ideal at all.

0:23:510:23:55

Back in Hampshire it sounds like the deadline has gone out of the window.

0:23:560:24:01

What we thought we could do it in obviously changed when we started uncovering bad things.

0:24:010:24:06

And in Perthshire have Kawa's demands been too high?

0:24:080:24:11

She wanted to put underfloor heating throughout the whole house... that would have been a bit too much.

0:24:110:24:15

Now we're heading back to Scone in Perthshire,

0:24:180:24:21

where Lee and Kawa bought this massive five-bedroomed family home for £300,000.

0:24:210:24:28

They wanted it to become, well, THEIR new massive five-bedroomed family home!

0:24:280:24:33

We've lived in Scone for nine years now,

0:24:340:24:37

so we've just moved up the road, just to a bigger house, basically. We love the area.

0:24:370:24:42

-A bigger house and closer to the school as well.

-Yeah.

-The school's right in front of the house.

0:24:420:24:46

# Don't mind doing it for the kids... #

0:24:460:24:50

So it's handy for their two young children, Connor and Kayleigh, to get to school quicker,

0:24:500:24:56

but, even better, there was that huge garden for them and their two family dogs to play in.

0:24:560:25:01

Ten months later, we caught up with them to find how they've settled in.

0:25:010:25:06

# I'm gonna give it all of my lovin'

0:25:070:25:10

# It's gonna take up all of my love

0:25:100:25:12

# I'm gonna give it all of my lovin'

0:25:120:25:15

# It's gonna take up all of my love... #

0:25:150:25:17

There's no doubt that they've put their heart and soul into this place,

0:25:190:25:24

transforming it into a stunning family home.

0:25:240:25:27

Apart from the obvious decorating that's been done,

0:25:270:25:30

Lee, an electrical engineer, has rewired, refloored and replumbed throughout.

0:25:300:25:36

There's been some structural work too, but they decided against installing glass doors

0:25:360:25:43

leading through from the kitchen to the dining room.

0:25:430:25:45

They did have grander plans but, sadly, they didn't quite come off.

0:25:450:25:49

Yeah, we were going to knock the wall right back

0:25:490:25:52

and then open-plan it all,

0:25:520:25:55

but we found out it's a load-bearing wall so it's not possible to do that,

0:25:550:25:59

so we've had a look... investigated opening this area,

0:25:590:26:04

and when we started to take it back, we found that it was already open and had just been plastered up

0:26:040:26:09

and made into the window, so it was a lot easier than we thought it was going to be

0:26:090:26:12

to open it to the way we wanted it.

0:26:120:26:15

Yes, I think actually it worked out better.

0:26:150:26:18

Because one side is open plan and this other side is kind of a closed, cosy sitting area,

0:26:180:26:24

so I think it's better.

0:26:240:26:26

The kitchen isn't the only thing they've opened up here.

0:26:270:26:31

Somehow they managed to squeeze a bath into the upstairs bathroom.

0:26:310:26:34

-We found that the bath would fit in there perfectly...

-In the cupboard.

-In the cupboard.

0:26:360:26:40

So we put in the L-shaped shower-bath and then it opened up the whole room a lot better.

0:26:400:26:45

And the underfloor heating in there is just...it's great.

0:26:450:26:48

She wanted to put underfloor heating throughout the whole house... that would have been a bit too much.

0:26:480:26:54

Kawa is obviously a lady with luxury tastes. She may not have got all the underfloor heating she wanted,

0:26:540:27:01

but she did manage to furnish all the loos in the house with electric toilet seats,

0:27:010:27:06

perfect for those chilly winter months.

0:27:060:27:09

# Baby, you're sitting on a hot seat! #

0:27:090:27:12

Where I'm from, in South Korea,

0:27:120:27:15

it's quite normal to have electric toilet seats with a bidet.

0:27:150:27:20

It's great! It's warm.

0:27:200:27:23

It's hygienic... and the kids love it.

0:27:230:27:26

With Scone Palace just down the road,

0:27:260:27:29

I'm sure any passing dignitaries caught short would be more than happy to sit on this throne.

0:27:290:27:35

Originally, they wanted to make all the bathrooms wetrooms,

0:27:350:27:38

but time and money meant it was too big a job,

0:27:380:27:41

so they chose to do more work downstairs on the new kitchen and utility room.

0:27:410:27:46

So, basically, we've changed the floor in here from the ceramic tiles into this laminate flooring,

0:27:480:27:53

because the floor was damaged.

0:27:530:27:55

We've then went and opened this up here which was basically just a brick wall,

0:27:560:28:03

because the door went through there.

0:28:030:28:06

And, basically, we said it's more sensible to take the dogs into the utility room with their dirty paws

0:28:060:28:11

rather than into the kitchen and then into the utility room.

0:28:110:28:13

It's a great solution to help stop dogs' and children's feet dragging mud in from the garden.

0:28:150:28:22

# Dogs are everywhere

0:28:220:28:24

# Almost everywhere

0:28:250:28:27

# That I go... #

0:28:270:28:30

In fact, it's only the garden that's still awaiting a makeover,

0:28:300:28:34

but there are plans afoot for decking. That would be perfect for those visiting relatives

0:28:340:28:39

like Lee's mum Irene and Kawa's mum Chungwok.

0:28:390:28:43

The work on the house took around nine months which is already three months longer than they hoped,

0:28:430:28:49

but they did do a lot more than they had originally planned which, of course, affected the budget too.

0:28:490:28:54

I think we blew the budget out the water! It kind of... we overstepped it slightly.

0:28:540:28:59

I think we estimated between 10,000 and 15,000...

0:28:590:29:04

and it's more in the region of 30,000 we've spent.

0:29:040:29:08

But has it all been worth it?

0:29:090:29:12

We asked along two local property experts

0:29:120:29:14

to tell us what they thought of the work.

0:29:140:29:17

Absolutely stunning.

0:29:180:29:20

The property's been well laid out for family living

0:29:200:29:23

and it's been done very, very well.

0:29:230:29:25

I thought, "Wow! What a difference!"

0:29:250:29:27

When I saw this property back in November last year,

0:29:270:29:31

it was a cross between a typical sort of manse and a house that needed a lot of improvement.

0:29:310:29:37

It's just chalk and cheese.

0:29:370:29:39

They've taken a lot of time and thought into what they've done, particularly with the utility area.

0:29:390:29:43

Having two dogs in the family, it's nice to come into the utility area

0:29:430:29:47

and get dried off before you actually come into the house. They've thought the property through very well.

0:29:470:29:51

Well, the area they seem to have spent the most money on is doing the kitchen and the utility area.

0:29:510:29:56

And they've obviously installed a brand-new kitchen. It's a really impressive job.

0:29:560:30:00

Scone in Perthshire's a very popular location and something presented to this standard is very desirable.

0:30:000:30:07

So how much profit do the experts think Lee and Kawa have made here?

0:30:080:30:13

Remember they paid £300,000 at auction and have spent £30,000 on the work,

0:30:130:30:18

so the figure needs to be more than £330,000 to show a profit.

0:30:180:30:22

In the current marketplace, which is still a buyer's marketplace,

0:30:240:30:27

I would still expect this property to do somewhere between £380,000 and £385,000.

0:30:270:30:32

If we were putting this property on the market now, I would think £400,000 might be a fair figure.

0:30:320:30:38

-That's good!

-Yeah, very happy with that.

-Big difference now.

0:30:380:30:43

Yes. Oh, very good.

0:30:430:30:45

With that healthy potential pre-tax profit of up to 70 grand, all that hard work has paid off.

0:30:460:30:54

The family can finally sit back and enjoy their new home

0:30:540:30:59

and think about their plans for the future which are...

0:30:590:31:02

-To live here for...

-Ever.

0:31:020:31:05

# Together forever and never to part

0:31:060:31:10

# Together forever we two... #

0:31:100:31:14

I'm in Derby in the East Midlands.

0:31:190:31:22

It's home to a large university, Rolls-Royce, Crown Derby china,

0:31:220:31:26

and is also, reputedly, the real ale capital of Britain.

0:31:260:31:31

Well, Derby has a rich industrial heritage,

0:31:330:31:37

and one of the by-products of that is streets and streets of terraced houses.

0:31:370:31:42

They can all be a little bit samey, so how do you choose between them?

0:31:420:31:47

Well, location is the key, and the property I'm here to see certainly ticks those boxes.

0:31:470:31:51

It's very close to the city centre, the hospital is also really close by

0:31:510:31:55

which is good news when it comes to rental.

0:31:550:31:57

Three-bed mid-terrace at a guide price of £68,000. Let's take a look.

0:31:570:32:03

So what have we got? Well, through a nice double-glazed entrance there, but, oh...! Lovely!

0:32:050:32:10

Original features, that's what we're hoping for.

0:32:100:32:13

A little porch area here and this nice old door.

0:32:130:32:16

Nice original knobs and everything on it. We like that.

0:32:160:32:19

Oh, yes. All the doors are original. That's lovely.

0:32:190:32:22

Have those dipped and stripped. They'd cost you a fortune if you were to replace them.

0:32:220:32:25

They've got so much character more than modern doors.

0:32:250:32:28

Things like... you've got this tiled floor here.

0:32:280:32:30

I'm already thinking great, great, great!

0:32:300:32:33

There's lots of character left in this place.

0:32:330:32:35

And this is unusual. I mean, I must have been in hundreds of terraced properties in my time,

0:32:350:32:40

but I can't remember seeing one where the staircase is round this way.

0:32:400:32:43

I can't quite decide whether or not it works, because it does make this part of the house feel quite dark.

0:32:430:32:49

Maybe you could think about taking this wall out... I'm not sure.

0:32:490:32:53

Because as it is it's all a bit "corridory"!

0:32:530:32:56

The front reception room has already been stripped back to bare plaster.

0:32:570:33:02

A shame that the original fireplace has been removed, though.

0:33:020:33:06

One bonus is that the property was reroofed and had new double glazing installed a few years ago

0:33:060:33:12

under a government grant scheme.

0:33:120:33:14

So those are a couple of jobs you won't have to do here.

0:33:140:33:17

Down here... this is the second reception room.

0:33:180:33:22

And it's a nice size but it just feels a little bit isolated from the rest of the house.

0:33:220:33:26

And then yet more corridor which leads through to the kitchen,

0:33:260:33:30

right at the back of the property, and the fact you have to travel down all these corridors

0:33:300:33:34

just makes it feel even more isolated.

0:33:340:33:36

It's not a bad-sized space, though,

0:33:360:33:38

although this area here, which has got the only loo in the property in it,

0:33:380:33:41

I think should be integrated more with the kitchen. All in all,

0:33:410:33:45

this is just... I quite like the quirkiness, but as a layout I'm really not sure it works.

0:33:450:33:52

The rear reception looks out on to the patio area next to the kitchen,

0:33:520:33:56

but beyond that the garden is pretty big. Overgrown, yes, but potentially a real selling point.

0:33:560:34:03

And structurally the outside of the house looks fine with its new roof and windows.

0:34:040:34:10

Back inside the house, which went to auction guided at £68,000, there are three bedrooms

0:34:110:34:17

up on the first floor. They're all a good size, certainly doubles, but the third one is smaller.

0:34:170:34:23

Again, all stripped back,

0:34:230:34:25

but at least most of the original cast-iron fireplaces, if not always in situ, are still around,

0:34:250:34:30

and can be refitted.

0:34:300:34:32

Well, up here on the landing, some very interesting features.

0:34:330:34:36

First of all there's this roof light in the ceiling which lets light down into the stairway area here,

0:34:360:34:42

partly coming through an actual window light in the roof itself.

0:34:420:34:45

Well, it's nice feature and actually it's got stained glass in there, so that would be nice on a sunny day.

0:34:450:34:50

What I don't like, though, is this.

0:34:500:34:52

This is the only bathroom in the property,

0:34:520:34:55

and, as you can see, it's sort of tucked away here on the stairs.

0:34:550:34:57

It just doesn't work. There's no loo, that's right at the back of the property, as I said before.

0:34:570:35:01

All in all, you're going to have to play about with the layout

0:35:010:35:04

because again, very, very strange and not ideal at all!

0:35:040:35:08

And there's another stained-glass roof light above the bath.

0:35:110:35:15

There's a most peculiar layout in this place,

0:35:190:35:22

though in some respects that's also its charm.

0:35:220:35:25

But what does the auctioneer who sold it at auction

0:35:250:35:28

think of this property? It went under the hammer guided at £68,000.

0:35:280:35:33

It's a lovely old house.

0:35:350:35:37

It's Victorian, very genuine. It's not been spoiled, nothing's been done to it

0:35:370:35:41

to try and sort of drag it into the 20th century, let alone the 21st!

0:35:410:35:45

It's quite spacious, it's got a lovely feel about it.

0:35:450:35:49

I like it.

0:35:490:35:51

What I would do if it was my house is I would resite the bathroom,

0:35:510:35:54

I'd open up that landing area and make that a feature.

0:35:540:35:57

I suppose the obvious place to put it is in the back bedroom

0:35:570:36:00

and then you'd do a loft conversion and make a nice roof room.

0:36:000:36:03

As always, the crucial thing when considering a loft conversion or extension is...

0:36:030:36:07

don't expect more value from a house than the local market can afford.

0:36:070:36:11

So, is it viable here?

0:36:110:36:14

To do the sort of schedule that I've outlined is obviously going to cost quite a lot of money.

0:36:140:36:18

I think you probably would get the money back, you wouldn't make any profit on it,

0:36:180:36:23

but I think it would cover its costs.

0:36:230:36:26

If a buy-to-let investor were tempted by the house,

0:36:270:36:29

would they find tenants easily and what sort of income could they make?

0:36:290:36:34

Because we're right sort of right on the city-centre fringe,

0:36:370:36:41

we're not even quarter of a mile away from the city centre, it's a good letting area,

0:36:410:36:46

and this would rent out very readily,

0:36:460:36:48

and I guess you would probably get about £500 a calendar month for it.

0:36:480:36:52

What about a resell valuation once the renovations have been done?

0:36:520:36:56

Do a good renovation schedule on what is here,

0:36:590:37:01

somehow reconfigure the bathroom without doing a loft conversion,

0:37:010:37:06

I think you could probably push its value up to about £110,000.

0:37:060:37:10

If you did the loft conversion, you might be able to get up towards £120,000 for it.

0:37:100:37:16

Well, it's a bit of tired terrace, but sort it out with a new kitchen and bathroom and a tarting up,

0:37:200:37:26

I think you'll have a lovely property here. I like its quirkiness and I like the location.

0:37:260:37:30

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

0:37:300:37:33

Lot number 8.

0:37:330:37:35

It's a classical Victorian townhouse.

0:37:350:37:38

It's got scope for upgrading and improvement, but excellent potential to it,

0:37:380:37:42

all set out for you in your catalogue, lot number 8. What am I said for this one?

0:37:420:37:45

68's the guide price to start me.

0:37:450:37:48

Opening it at 65 to move on. He will, thank you. 65 I'm bid.

0:37:480:37:52

£65,000 opening bid.

0:37:520:37:54

66. 66,000.

0:37:540:37:56

67 is bid. 67. 68.

0:37:560:38:00

69. 70,000.

0:38:000:38:02

71, 72. 73?

0:38:020:38:06

It's in the market, it's going to get sold. The bid is £72,000.

0:38:060:38:10

73. 73, 4.

0:38:100:38:13

74,000. 75?

0:38:130:38:15

74 on the right.

0:38:150:38:17

75 quickly? At £74,000...I thought it might make a touch more.

0:38:170:38:22

At £74,000 and for the first time, second time, third and last opportunity. Any higher bid?

0:38:220:38:29

Sold at £74,000. Thank you.

0:38:290:38:32

That final bid of 74,000 was made by John. He's from Derbyshire and is no stranger to the auction room

0:38:320:38:39

as he's been a property developer for 20 years.

0:38:390:38:43

I caught up with him back at his latest purchase to find out more.

0:38:430:38:47

-John, congratulations. Nice place.

-Thank you.

-Tell me why you wanted to buy it.

0:38:490:38:54

As an investment to pass on and make a profit on it.

0:38:540:39:00

-OK. So come in, do it up, sell it on, sort of thing?

-Yeah, yeah.

0:39:000:39:05

-Is this something you do?

-Yeah, I've been doing this for a number of years now.

0:39:050:39:09

So why this particular house?

0:39:090:39:11

Well, I think I can turn this round quickly. I can do it up and sell it.

0:39:110:39:17

I had an option of two when I went to the auction.

0:39:170:39:20

-And the first one went for 95,000 and I picked this up at 74.

-Right, and were they similar?

0:39:200:39:28

-Absolutely similar, yes.

-Oh, wow! So you saved yourself 20,000?

-Yeah.

0:39:280:39:33

-What do you put that down to?

-Cos there was nobody else interested in this one.

0:39:330:39:37

-Lucky dip, a bit of a lottery, really.

-What was it that you liked about it?

-Nothing specifically.

0:39:370:39:43

I mean, this house has got a new roof, it's got PVC windows, double-glazed units...

0:39:430:39:48

you know, that's a good part of the work done already.

0:39:480:39:51

-Apart from that, it's a mid-terraced house, nothing special.

-Unusual layout!

0:39:510:39:57

I haven't come across one before with the stairs going up the way they do. Have you seen that before?

0:39:570:40:03

I can't say that I have. But you were saying it's unusual... I just think it's a staircase...

0:40:030:40:10

leading to the first floor!

0:40:100:40:12

Well, John seemed to take a very practical rather than detached approach to property,

0:40:130:40:19

but, then, he has been developing for 20 years.

0:40:190:40:21

However, he hasn't always bought to do up and sell on as he has done in this case.

0:40:210:40:28

I did used to have a rental portfolio, I used to hang on to the houses and let them,

0:40:280:40:34

but in the last couple to three years I've been doing them up and selling them.

0:40:340:40:38

So, tell me exactly what you're going to do to this place?

0:40:380:40:41

Well, apart from a lick of paint, I'm going to rewire it,

0:40:410:40:44

put central heating in, new boiler, new kitchen, new bathroom...

0:40:440:40:51

new doors, internal doors...

0:40:510:40:54

-The doors are beautiful.

-Do you think so?

-Yeah! Why change them?

0:40:540:40:57

-I think they need upgrading.

-Ah, dip and strip them, they'll look beautiful.

0:40:570:41:01

-Add a bit of character.

-It's cheaper to buy a new door.

-It's not just about cheapness, it's character!

0:41:010:41:06

Well, possibly, yes. I know what you're saying...yeah.

0:41:060:41:09

Yeah...mmm.

0:41:090:41:11

I'm a developer, aren't I?

0:41:110:41:14

I haven't got time to be sympathetic.

0:41:140:41:18

Oh, well, obviously, pragmatism rules in John's world!

0:41:210:41:25

I personally think character features can help sell a property and add to its appeal.

0:41:250:41:31

But they do often mean renovation costs and in business it's usually the bottom line that counts.

0:41:310:41:37

I just hope that John doesn't rip the heart out of this place.

0:41:370:41:41

-So what sort of budget have you got for doing the work?

-I reckon I'll spend about 15k.

-OK.

0:41:410:41:45

And timescales?

0:41:450:41:46

-Two months.

-Do you do anything else other than buying and selling properties?

0:41:460:41:50

-Well, I run a maintenance business.

-Oh, OK.

0:41:500:41:53

-So the guys will do that?

-Yeah, the crew will come from that business.

0:41:530:41:58

So, John's maintenance team will do the work and it'll basically be a cosmetic overhaul.

0:41:580:42:03

He's keeping it simple and not planning any major layout changes or anything structural.

0:42:030:42:08

The only thing he might add is a bathroom in the utility area off the back of the kitchen.

0:42:080:42:13

This would allow the possibility of making the front reception room into an extra bedroom.

0:42:130:42:17

That might attract buyers wanting to purchase an investment property to let out.

0:42:170:42:23

-Well, good luck with it!

-Thank you.

-We look forward to seeing how you get on.

0:42:230:42:26

Well, I think John and I would have a heated discussion down the pub about property renovation.

0:42:280:42:33

I tend to try and keep character in a property, John being a little bit more pragmatic.

0:42:330:42:38

And if you're in this just for the money and the business, then I suppose that's how you should be.

0:42:380:42:42

How will he get on? Find out later in the show.

0:42:420:42:46

It's always very easy to put things off until tomorrow, but time is money and delays can be expensive.

0:42:490:42:55

So have our buyers been busy or let the grass grow underneath their feet? Let's go back and find out.

0:42:550:43:02

Now we're back in Hampshire

0:43:040:43:07

where this slim-line retail property in Totton sold at auction for 40,000.

0:43:070:43:12

Brothers Jason and James who both work in the transport industry

0:43:120:43:16

wanted to turn it into a barber's shop.

0:43:160:43:19

# Got a devil's haircut in my mind... #

0:43:190:43:22

But you know nothing about hairdressing. Do you know any barbers?

0:43:230:43:26

-A couple of people have come forward. They want to have a go.

-We're starting to learn about it.

0:43:260:43:30

Well, they may not know much about hairdressing,

0:43:320:43:35

but we caught up with younger brother Jason five months later

0:43:350:43:38

to see how much they know about renovation.

0:43:380:43:41

Well, there's a fresh sign on the window and inside it's all ready for business,

0:43:500:43:55

with tenants lined up and set to move in very soon.

0:43:550:43:58

Well, as you can see, we've taken away... This was all plastered and boarded up.

0:44:080:44:12

We discovered these nice spindles. Over this side, new sink, shower unit. There was an old kitchen here

0:44:120:44:18

that was pretty nasty. Taken that all down.

0:44:180:44:22

Chimney breast used to be here which created a lot more room through taking it out.

0:44:220:44:27

So, yeah, we're well pleased with it.

0:44:270:44:29

They've done really well to squeeze more space out of this rather narrow property.

0:44:310:44:36

There wasn't much they could do about those steep stairs,

0:44:360:44:38

but at the top they have managed to find space to install a shower in the bathroom.

0:44:380:44:43

Before it was a nasty yellow, covered in Artex, with a small sink and toilet,

0:44:430:44:50

pretty nasty...so we added a touch with a shower, new bathroom suite,

0:44:500:44:54

retiled all the way through full to the bottom.

0:44:540:44:57

Yeah, pleased how this turned out.

0:44:570:45:00

It's a welcome little extra for the staff to have that shower unit,

0:45:000:45:05

and it's certainly a lot more pleasant for them than that dingy old toilet.

0:45:050:45:09

Next door, the boys have decided against an office space and gone for a staff kitchen instead.

0:45:090:45:15

Well, I'd rather have a cup of tea than do my books any day!

0:45:150:45:19

Chimney breast was here which has opened it up a bit.

0:45:200:45:24

We took this out about a foot and a half so we can create the kitchen and make the bathroom a touch bigger,

0:45:240:45:30

and made it a good little chill-out room, I think, for the staff to come up and make a coffee

0:45:300:45:35

and wait for the next customer to come in.

0:45:350:45:37

The brothers' budget was five grand.

0:45:370:45:40

But they did have a contingency of 1,000, so how much did the work cost them?

0:45:400:45:46

Well, we're well pleased, we came in on £6,000.

0:45:460:45:49

So all good there, then, but not such good news on the timescale front,

0:45:490:45:54

as they'd originally planned for one month.

0:45:540:45:57

The timescale, what we thought we could do it in,

0:45:570:46:00

obviously changed when we started uncovering bad things.

0:46:000:46:04

and the timescale, it's been about five months.

0:46:040:46:08

When Jason and James' builders removed that chimney breast,

0:46:080:46:12

they discovered electrical problems and some damp,

0:46:120:46:15

but in an old place like this, that's par for the course.

0:46:150:46:19

But there was a much more interesting discovery about the building's past.

0:46:190:46:23

The guy next door had a book on Totton history and this building's in there.

0:46:260:46:33

And the very first thing it was used for was an abattoir, believe it or not.

0:46:330:46:38

But since then it's been a chip shop, a dentist, a betting shop, a cobbler's,

0:46:380:46:43

and now a barber's shop.

0:46:430:46:46

# One man's meat is another man's poison... #

0:46:460:46:49

So this is one property with a rich and varied history,

0:46:500:46:53

but will its new lease of life as a barber's shop make a neat and tidy profit?

0:46:530:46:58

We asked two local property experts

0:46:580:47:01

to tell us what they thought.

0:47:010:47:03

I think it's very nice, great little refurb. Nicely laid out.

0:47:060:47:10

They've made good use of the space, that sort of thing.

0:47:100:47:13

-I particularly like the staff kitchen upstairs.

-Well, it all looks good.

0:47:130:47:16

It's had a refurbishment. It's nice and light and bright

0:47:160:47:20

and attractive to a potential tenant.

0:47:200:47:23

I think the shower would be useful. Occupiers looking for a beauty use or salon-type use

0:47:240:47:28

will often need a shower for their facilities.

0:47:280:47:31

I think it'll work quite well as a business.

0:47:310:47:34

It'll get a certain amount of passing trade.

0:47:340:47:36

There are a number of commercial and industrial units dotted around, that sort of thing.

0:47:360:47:40

So the current owner's obviously done his research and I think running it as a barber's is a good idea.

0:47:400:47:46

Remember, Jason and James paid 40,000 for the property and spent £6,000 on the work.

0:47:470:47:52

That makes a total spend of £46,000 plus legal fees. So, have they added any value here?

0:47:520:48:00

I'd look to put this property on the market at £50,000.

0:48:010:48:04

I think with the right purchaser it could be worth up to £50,000.

0:48:040:48:08

Well, I think that's a bit of a low valuation.

0:48:080:48:10

You can't really buy much for £50,000, considering what we've done here.

0:48:100:48:14

I think that's very low.

0:48:140:48:17

Those may not be the kind of figures that Jason wanted to hear,

0:48:180:48:22

but remember the markets are not buoyant at the moment,

0:48:220:48:25

so in the future he could see an improvement. What do the experts think it could rent for?

0:48:250:48:30

On an annual basis, you'd look to achieve around £4,500 per annum.

0:48:310:48:35

I think it could be rented for approximately 3,500 a year.

0:48:350:48:39

The rental sounds a bit better than the sale price,

0:48:390:48:42

so quite happy with the rental price.

0:48:420:48:44

Those figures work out at between £290 and £375 per calendar month.

0:48:440:48:52

In fact, the brothers have managed to secure £600 a month from their tenants,

0:48:520:48:57

a tidy income of £7,200 a year. That just leaves one thing...

0:48:570:49:02

was there any sibling rivalry?

0:49:020:49:05

Well, we both stuck together. Obviously, sometimes, like brothers do,

0:49:060:49:11

you can disagree on something, but we get together in the end and make our decision and we agree on it.

0:49:110:49:16

We both worked well, got on with the job, got it finished and ready to roll.

0:49:160:49:22

# You gotta roll with it You gotta take your time

0:49:220:49:26

# You gotta say what you say Don't let anybody get in your way

0:49:260:49:31

# Cos it's all too much for me to take... #

0:49:310:49:36

Now we're back in Derby.

0:49:390:49:41

Remember this large three-bed terraced house? It sold at auction for £74,000 to John,

0:49:410:49:48

a full-time property developer who buys, renovates and sell houses on.

0:49:480:49:53

I was a bit worried about the scale of modernising he had in mind here,

0:49:530:49:56

especially on those lovely period features, like doors.

0:49:560:50:01

-The doors are beautiful.

-Do you think so?

-Yeah! Why change them?

0:50:010:50:05

-I think they need upgrading.

-Ah, dip and strip them, they'll look beautiful.

0:50:050:50:08

-Add a bit of character.

-It's cheaper to buy a new door.

-It's not just about cheapness, it's character!

0:50:080:50:14

Well, possibly, yes. I know what you're saying...yeah.

0:50:140:50:17

Yeah...mmm.

0:50:170:50:19

But John's a businessman through and through, and on top of developing he manages his own maintenance business

0:50:190:50:26

and has bought and sold countless properties.

0:50:260:50:28

So how have John and his team got on with his latest buy,

0:50:320:50:36

and will any of those original character features remain?

0:50:360:50:39

We've returned three months later to find out.

0:50:390:50:42

Well, everything has changed in terms of a full upgrade,

0:50:520:50:56

a full refurbishment has taken place.

0:50:560:50:59

We've put in two new bathrooms...

0:50:590:51:02

..new kitchen...

0:51:030:51:04

..rewired, new central-heating system, decorated, carpets, curtains,

0:51:080:51:15

a full scope of refurbishment, really.

0:51:150:51:17

It's light, bright, fresh as a daisy and modern to boot! A bit too modern for me, though.

0:51:170:51:22

I think it's a shame that he's lost the period features like the doors, tiling and the fireplaces,

0:51:220:51:30

but, thankfully, that old lonely-looking loo has benefited from a complete overhaul.

0:51:300:51:36

There was merely a toilet in this back room. I've moved the door. The door was in the corner initially.

0:51:360:51:43

So I've centralised the door to give some more wall-unit space,

0:51:430:51:49

and I've out a new kitchen in, obviously, incorporating a hob and oven.

0:51:490:51:53

I guess, you know, you tend to try and maximise the amount of base and wall units

0:51:530:52:00

you can put it in a confined space, and I think we've achieved that.

0:52:000:52:03

John project-managed the renovation. His team of builders have completed the project for around £10,000,

0:52:030:52:11

which is 5,000 under his original budget.

0:52:110:52:13

# Shake your money, shake, shake your money... #

0:52:130:52:17

He went slightly over the two-month timescale to finish due to other jobs John had the builders on,

0:52:210:52:27

but this one is now totally ready for market.

0:52:270:52:29

You can walk in here and you don't have to do anything.

0:52:290:52:32

The curtains are up, the carpets are down. You just have to introduce a couple of beds,

0:52:320:52:37

a bit of furniture...

0:52:370:52:39

er...a few pots and pans in the kitchen...

0:52:390:52:43

bottle of wine.

0:52:430:52:45

# Here we sit enjoying the shade... Hey, brother, pour the wine

0:52:450:52:49

# Drink the drink that I have made... Hey, brother, pour the wine... #

0:52:490:52:53

I'm sure John's own team of employees will raise a glass to him

0:52:530:52:56

as, although this wasn't a passion project, it will certainly help pay the bills.

0:52:560:53:02

I'm just doing it to keep my employees in work,

0:53:020:53:08

to keep money rolling in...

0:53:080:53:14

and, er...yeah, commerce, really.

0:53:140:53:17

# Go on, take the money and run Yeah, yeah, yeah

0:53:170:53:21

# Go on, take the money and run... #

0:53:210:53:26

So how has this latest venture paid off for John?

0:53:260:53:30

We asked along two local property experts

0:53:310:53:34

to tell us what they thought of the work and of the house's potential on the market.

0:53:340:53:38

I think he's done a fabulous job with the renovation.

0:53:380:53:41

The owner has really gone to town on making sure it's very neutral,

0:53:410:53:46

it will suit anybody that views it.

0:53:460:53:48

It's nice, it's fresh, it's clean, it's modern.

0:53:480:53:51

I think he's done a good job with it, except it tends to be,

0:53:510:53:54

in my terminology, just a little bit standard.

0:53:540:53:57

It's all magnolia paint, it's all the same contract carpet.

0:53:570:54:00

And I'm slightly disappointed, I think he's taken away some of the character of the house.

0:54:000:54:04

Whilst that's not a huge issue, it's a nice, clean, tidy house, but I think it's lost something.

0:54:040:54:10

I particularly like the fact that he's put another bathroom in the property.

0:54:100:54:14

I think that's a very good selling point, having an extra shower room upstairs

0:54:140:54:17

and a bath downstairs is certainly more appealing to the wider audience.

0:54:170:54:22

I think what he's achieved is probably the optimum out of the house as a shell of a property,

0:54:220:54:27

without going the second mile. The second mile would have been to have done a loft conversion,

0:54:270:54:33

but you're talking quite a lot of money, and I'm not sure you would get your money back in this location.

0:54:330:54:39

There is certainly a good rental market in the area,

0:54:390:54:42

there are a lot of people looking for city-centre apartments,

0:54:420:54:46

it's permit parking which is fantastic for this part of town.

0:54:460:54:49

However, there is also a good selling market for this particular area.

0:54:490:54:55

Its close proximity to the city centre means it's perfect for commuters.

0:54:550:55:00

So it could be in healthy demand either way, but what could John hope to achieve if he did rent it out?

0:55:000:55:07

I think if it was let as a single three-bedroomed house,

0:55:090:55:12

the rental value would probably be about £525 a calendar month.

0:55:120:55:16

I believe rental price on the property as a three-bedroom property

0:55:160:55:21

would be between £500 and £525 per calendar month.

0:55:210:55:26

I think they've got it about right. These are the experts!

0:55:260:55:31

But, I mean, estate agents do differ on their valuations.

0:55:310:55:36

But John's plan is to resell the house.

0:55:360:55:40

So how much value have his efforts added here?

0:55:400:55:43

Remember he paid £74,000 and has spent £10,000 on the work,

0:55:430:55:47

so this figure needs to be more than £84,000 to show a profit.

0:55:470:55:52

If this property came to market for sale in the current market,

0:55:520:55:56

I would suggest a sale price of between £105,000 and £110,000.

0:55:560:56:02

The asking price would probably be just short of £110,000.

0:56:020:56:06

I would hope that he'd get somewhere between £100,000 and £105,000.

0:56:060:56:11

Yeah, I'm happy with those figures.

0:56:110:56:13

Yeah, yeah... I think it's good news all round.

0:56:140:56:19

# I'm taking care of business Taking care of business... #

0:56:190:56:24

In the end, John decided to test the market and put the property on sale for £115,000.

0:56:240:56:31

He has since had an offer of 110,000 which he'll probably accept.

0:56:310:56:36

So, all in all, that's good news.

0:56:360:56:39

Join us next time when we'll have more interesting properties sold under the hammer.

0:56:420:56:47

Absolutely! Flats, maisonettes, plots of land, we'll follow them all as they develop.

0:56:470:56:51

-See you soon.

-Goodbye.

-Goodbye.

0:56:510:56:54

Subtitles by Red Bee Media Ltd

0:57:000:57:04

E-mail [email protected]

0:57:040:57:08

Martin Roberts and Lucy Alexander visit a house in Perthshire, a property in Hampshire and a three-bed house in Derby. All of these properties went to auction, and Martin and Lucy learn who bought them and what they paid when they went under the hammer.


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