Episode 17 Homes Under the Hammer


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Episode 17

Martin Roberts and Lucy Alexander visit a property in the Rhondda Valley, an empty shop in Kent and a bungalow outside Derby, and find out how much they sold for at auction.


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LineFromTo

Hello. Now, like you, we're interested in property.

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That means every aspect of it. We're always on the lookout for a bargain.

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And one way you could get one is to go to your local auction.

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There are property auctions held all over the country throughout the year, so you're spoilt for choice.

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Let's take a look at the properties that made our buyers want to part with their cash on today's show.

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'I'm in the Rhondda Valley, where problems begin as soon as you get through the front door.'

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Not a particularly good start.

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'I visit a gigantic empty shop in Kent which is very promising.'

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The numbers look good, but you may need to look harder to actually see that cash.

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'And is it love at first sight when I visit this bungalow on the outskirts of Derby?'

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I'm liking what I'm seeing!

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'All these properties have been sold at auction and we find out who bought them

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-'and what they paid for them when they went under the hammer.'

-Twice, third time.

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'I'm near Tonypandy in the Rhondda Valley,

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'an area steeped in coal-mining history.

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'Served by the South Wales Commuter Railway, the Rhondda line,

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'it's within easy reach of Cardiff less than an hour away.'

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I'm in the heart of the Valleys in Trealaw,

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here to see an end terrace at a guide price of £26,000-plus.

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This is it. Looks a little bit in need of care and attention from the outside.

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Let's see what the inside has in store.

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'Although this house looks a bit rundown, the rest of the street's in good order.

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'The view to the other side of the valley is a lovely outlook,

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'but inside, it's a different story.'

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Oh, my word. Straight away, into the entrance corridor,

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and, holy mackerel, that is a lot of damp.

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This whole wall... Well, you can see it. It's not damp here,

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damp all the way down there and all the way up there.

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I'm not sure how bad it is. Here's a little tip for you.

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I've got a car key. If you tap the wall, if it's really badly blown, you'll hear it go very hollow.

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-That isn't too bad.

-HE TAPS THE WALL

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So the wall is still pretty solid and that plaster, I reckon, isn't a lost hope.

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So you could dry this wall out and not have to replaster.

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The big thing is, what is causing that damp?

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My guess, by the height here, is that it isn't coming up,

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it's coming in, so you need to check out what's on the other side of that wall to find out what's causing it.

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The other thing to consider is, how far has it gone into the floor? Is the floor solid or wooden?

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Could it have possibly rotted some of the beams or the joists?

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Lots to consider. So not a particularly good start.

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Bit of a shame, really, because in terms of layouts, I like that idea of a corridor there.

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It keeps the draughts away from the main living areas.

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And in terms of the living areas, again, good size. You've got a front living room area there

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and a rear one here. Obvious thing to do would be to take out this wall to make a big open-plan area.

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Slightly unusual, through there is where the only loo and bathroom in the property is.

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Then onwards through to the kitchen.

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'And, like the rest of the property, this bathroom's seen better days.

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'It's also the only one in the house, so anyone needing the loo in the night has quite a trek.'

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# Hold on, hold on

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Through to the kitchen, and interesting little feature here,

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you've got this window, which is letting a little bit of light into the living room space.

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Not much, though. It's very dark and dingy in there,

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so maybe you could remove this wall, as well, or put a breakfast bar in there.

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The kitchen is in a right old state.

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All you've got is a sink and a couple of units underneath it.

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So this needs work. And something structural that is worrying me slightly, the ceiling.

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Polystyrene, look at the height of it, I think this is built into an extension.

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Judging by the state of it, not in that good a condition.

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So what are you going to do with this? Hm. I think that needs some thinking about.

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'Off the kitchen, there's also this rather strange door

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'and stairs running down to the rear.

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'Out to the back, you can see the extension, which houses the kitchen,

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'and there's a small garden out there with a big shed and a greenhouse.

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'No clues about the source of the mystery damp. Let's head upstairs and check out the rest.'

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At the moment, upstairs is configured as two bedrooms,

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a big bedroom on the front and a smaller bedroom towards the rear,

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but I reckon there's enough space up here to reconfigure the layout

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to create maybe three bedrooms or at least two bedrooms and an upstairs bathroom.

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That would definitely be worth doing.

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'Remember, this had a guide price of just £26,000.

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'But the mystery damp issue means it's not going to be just a straightforward redecoration job.'

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# It's a mystery

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'To find out more about the area and the property,

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'it's time to consult a local estate agent.'

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What's good about the Rhondda is obviously the scenery, I think.

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The facilities are pretty good within the Rhondda.

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You don't have to go too far for a sports centre, for instance.

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There's a number of them within the Valleys. The property is surprisingly quite large,

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because it could easily be transferred back to a three-bedroom.

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The property itself just needs a full refurbishment,

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a gut job, as we say.

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Every wall has to be hacked off and replastered,

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and once that's done, I think that would cure the damp anyway.

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It's just generally within the walls,

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not within the stone build, it's within the plaster.

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'If he's right, that should be a relatively straightforward fix.

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'I reckon this could be an ideal rental property.

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'What sort of income could the new owner expect if they brought it up to modern standards?'

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Rental on this property, if reverted back to a three-bedroom,

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I would estimate to be in the region of £400 to £425 per calendar month.

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'What about resale? Would it be worth all the effort to sort out the damp and renovate the place?'

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Once renovated, and if it is reverted back to three bedrooms,

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I would estimate this property would be worth in the region of £70,000 to £75,000.

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Well, yes, there's work to be done to sort this place out.

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It needs stripping back and redecorating, for sure,

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and whatever's causing that damp definitely needs to be investigated.

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But the guide price was just £26,000-plus.

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A great one to go for as a rental opportunity or a place to live. Let's see who went for it.

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Near Tonypandy, it's a traditional-type terraced house.

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Can I see 29 for this one? 28, then. 27. Let's get started.

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5 is that? Thank you, sir. 25,000 I'm bid. This is no money for it.

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A half, thank you. 25 and a half I'm bid.

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At 25 and a half. 6 is it for you, sir? 26 I'm bid.

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Half, thank you. At 26 and a half. At 26 and a half.

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7 can I now? At 26,500. 7 if you like. Quick if you want it.

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At 26,500. 7, thank you.

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At 27 I'm bid. At 27. Half, thank you.

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27 and a half. Make it 8 on my right.

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8. 28 I'm bid. Where's yours? I've got him.

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Thank you. 28 and a half. 9 will you now, sir, on my right? Thank you.

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At 29 I'm bid. And another half, sir?

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At 29. Half, thank you. 29 and a half. That's a bad place to stop.

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It's difficult to work out the deposit. Let's make it 30, please.

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30, thank you, sir. At £30,000. At 30.

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And a half for you, sir. Thank you. 30 and a half.

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You're still out. Give him a nudge, madam, he likes it.

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30,500, he's been in all to way.

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Tell him not to lose it. At 30,500. And 1 can I? Yes or no?

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Quick if you want it. I'm not going to dwell. Have you done? 1.

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Thank you. You saw it there. At 31.

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Thank you, 31 and a half. Now wave that catalogue again. At 31 and a half.

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You said no before, but keep trying. At 31 and a half.

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Are you coming again, yes or no? At £31,500, then, in the back of the room.

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# Smooth operator

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'Smooth bidding won the day there and ensured that carpenter Rob

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'and his business partner Mark snapped up the property for £31,500.

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'I met Rob there to hear about their plans.'

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-Rob!

-Hello.

-Congratulations.

-Thank you very much.

-Tell me why you wanted to buy the house.

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Basically, to earn a bit of money, to cut it short.

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I've always wanted to get into the property development side of it.

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I've been a carpenter all my life, so it's just a matter of time,

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of getting the money together and actually getting things kicked off and started, really.

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-So, is this number one?

-This is number one. Numero uno.

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'Rob and Mark will do most of the work themselves.

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'They plan to get everything done within three months and use their carpentry skills

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'to give the place a professional finish.'

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-What's your business?

-Most of it is sanding floors these days.

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We bring up parquet floors, restoration work to flooring, really.

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-Are you going to do that here?

-I'll certainly have a look.

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I'd rather do that than carpet, but then again,

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you're always fighting that a lot of ladies want carpet upstairs.

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I'll certainly be putting hard-wood flooring downstairs,

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so that should make an impression.

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'But there's little point in thinking about the finishing touches

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-'till they've dealt with the mysterious damp problem.'

-Worst case scenario is

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-that we have to get it injected, damp-proofed.

-That's not a bad worst case.

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No, not really. Perhaps the render will have to come off the pine end, hopefully not. We'll have a look.

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Until we get that off the inside of the walls, it's hard to tell.

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-What kind of budget have you set aside?

-£11,000 for materials and labour.

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I've kept £4,000 contingency for that damp issue, the big damp issue.

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And that's about it. So it brings it up to about £15,000 to get it done, really.

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'With a purchase price of £31,500,

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'that'll bring the total spend to over £46,500

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'if Rob and Mark don't get bogged down by those damp walls, of course.'

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This end bit here, that's definitely coming down. I'm going to open it out a little bit.

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Them steps coming down there are going to be open.

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Basically, downstairs, I'm probably going to keep it similar.

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Upstairs is going to be the change. We are going to split that big bedroom into two,

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so you've got the double windows at the front. I've taken measurements, so we will get away with it.

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-They'll be nice bedrooms for the size of the house.

-And leave the downstairs loo?

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Unfortunately, yeah. It is the first house.

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We want to try and get it turned around as quickly as we can.

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So, unfortunately, it will be staying downstairs.

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-And once you've done this one, what's the plan then?

-Get straight back to auction.

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-Onto the next one?

-Onto the next one.

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-Congratulations, good luck and we look forward to seeing how you get on.

-Thank you.

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So, an interesting house for Rob to take on as his first property development project.

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He seems to have everything pretty much in place,

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although the big unknown is what is causing that damp.

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And that could turn out to be a very expensive thing to fix.

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Will his £4,000 contingency be enough?

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You can find out later in the show.

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'This is Snodland in Kent, which lies between Maidstone and Chatham,

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'and a convenient couple of miles from the M20.

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'It's not a big place, but it's due to expand

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'due to a new development of over 1,000 homes in the Holborough area of town.

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'So, with all that new investment, I reckon Snodland could be worth a look.'

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So what does the centre of Snodland have to offer?

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Well, you'll be excited to hear, quite a lot.

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I'm here to see what was described in the catalogue as "substantial commercial property"

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right here, just off the high street.

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And substantial it is, with great big, massive display windows, which is always a plus.

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Until recently, it was a plumbing, heating and bathroom centre.

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With a guide price of £200,000 to £220,000,

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let's get inside and see if it washes its face.

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Ooh! First impressions, it's a very big space.

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From the outside, you don't think it's going to be as deep as this.

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And there is loads of room. Also, it's incredibly light.

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Once you take down all the brown paper from the windows and the boards, it'll be a lovely,

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wide-open, light space.

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# I need a wide-open space

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# I'm standing

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'But if that's not large enough for you, there's plenty more space out the back.'

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# Space

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'This place is massive, over 600 square feet, in fact, and that's just on the ground floor.

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'Let's head upstairs.'

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It's interesting. Up here, you can really see the old remnants of the bathroom showroom.

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You've got a hot little radiator plumbed in.

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There's hot tubs everywhere, doors leading to toilets.

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There's just so much space up here! When you first walk into a room like this,

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you just can't believe that it's actually going to have as much square-footage as this place has.

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But what I like about this is that it offers different things to different people.

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There's so much room. Endless opportunities here.

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'In fact, there's so much space, I'm slightly bewildered about what you'd do with it.

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'How many businesses require this much room?

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'And, more to the point, how many can afford this much square footage?

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'With that in mind, it's time to reveal a little secret.'

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So, you've had the tour. Now for the surprise.

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This lot was actually sold with planning permission

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to split the ground floor into three separate commercial units

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and turn the upper floors into three flats, two two-beds and one one-bed.

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It's quite an interesting twist. It means the building turns from a large, empty space

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most businesses would struggle to fill

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into a potentially profitable proposition.

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'I have to say, I'm excited, if not a little relieved,

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'that there are more options than meet the eye.

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'The area is a mix of commercial and residential properties,

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'so maybe this could work.

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'With all of this in mind, I'm going to take a second look around.'

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So let's think about these commercial units. How good an investment would they be?

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Each unit would have a large window facing the road and A1 usage,

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so that would make them suitable for any number of businesses.

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Dividing up the space into separate shops would be straightforward

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and could increase your rent from 13 grand per annum for the one big space

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to 18,000 per annum for three shops.

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So, in theory, it adds up. It's just a matter of getting all of them let.

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Little towns like this tend to struggle to support independent businesses

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with larger shopping centres siphoning off lots of their trade.

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The numbers look good, but you may need to work hard to actually see that cash.

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'It's certainly worth some serious thought.

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'A quick glance around town seems to suggest there's a decent amount of local trade,

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'but there are empty units, so you must question the wisdom of adding more to the mix.

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'What about the flats?'

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These planned flats will have a lot going for them.

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They're in the centre of town and you've got amenities coming out of your ears.

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I think they'd probably rent out in a flash.

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But when it comes to selling them, well, that is a different matter.

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The first hurdle would be getting a mortgage,

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since many companies won't lend on flats over commercial premises.

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Then you may have to put up with the noise from the units below

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and you don't have any idea what type of business is going to occupy those spaces.

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The A1 usage would rule out takeaways, for example, but not funeral directors.

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And who's to say the new tenants won't try for change of use, anyway?

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So flats like this are always a bit of a gamble,

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and while it may be worth the risk to some,

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you need to remember that others won't touch them with a barge pole.

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'So neither the commercial units nor the flats are dead certs to make instant cash.

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'And after all the expense of conversion,

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'you'd have to be prepared to see your lolly tied up in this lot for the foreseeable future.

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'There are issues with all the units, especially considering there's no parking,

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'which will put buyers off the flats and shoppers off the shops, so not ideal.

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'I asked a local estate agent what he thought.'

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My first thoughts in creating three residential units here

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in the upper parts, I think that's a good idea, good use of the space.

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I think there would be interest in the flats, particularly for renting.

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Less so, in the current market, for purchase.

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'What sort of rental return could the new owner expect on the flats?'

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Well, I would put the rental value for the one-bed at £450 a month

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and for the two-beds at £500 a month.

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'That's a potential annual income of over £17,000 on the flats alone.

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'Put together with the estimated £18,000 annual rent on the retail units,

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'and it doesn't sound bad, if you can get the tenants.

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'What if a developer bought, intending to sell it on?'

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As a developed property, with the conversions done,

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I would say the value is somewhere in the region of £450,000 to £500,000.

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As it stands at the moment, I think there'd be interest at about £200,000 to £220,000.

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This is a lot of property with a lot of options.

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And with the planning passed, well, it's an exciting opportunity.

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But getting this development to turn a profit will require a substantial amount of cash in the beginning

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and you may have to work hard to make sure it makes you money at the end.

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Let's see who thought it was worth it at the auction.

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So, what are we going to say on that one?

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It's got a guide of 200 to 220. Lots of building there, lots of potential.

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Can I see £200,000 for it? £200,000 for it?

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Give me 180, then. Start me at 180 if you wish.

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180. 180 I've got from two places.

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180. And 2. 182. And 5. 185. Thank you.

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190, I'm obliged. 5. 200 if you like.

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At £200,000 against you sitting down.

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200 it's with you. And 5 now.

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205 bid I have. 210 now do I see?

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206. And 7.

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207. We're down to ones.

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£206,000 then I have. 207 I'm looking for.

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Are we all done? 207. Can I say 8?

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208. Still not big money. 208.

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And 9. 209. It's easier in ones. 209.

0:20:150:20:18

209. You're not going to miss it for £1,000.

0:20:180:20:21

209 I'm bid.

0:20:210:20:24

210. It's against you, 210. 11 if you wish.

0:20:240:20:28

At £210,000. I've got it and I'm going to sell it for the first time.

0:20:280:20:32

£210,000 for the second time.

0:20:320:20:36

Third and final time, you're out of it on the right. Are we all done?

0:20:360:20:40

-HAMMER BANGS

-You've just bought Snodland, sir. 9931. Not the whole of Snodland.

0:20:400:20:46

I can remember when you could've done, but it was a long time ago.

0:20:470:20:52

'That final bid of £210,000 was made by Micky, who's arrived looking very dabber.

0:20:520:20:59

'I want to know what such a smart gent wanted with this auction lot.'

0:20:590:21:03

So, Micky, tell me, why did you want to buy this?

0:21:030:21:07

Well, we've got a retail unit nearby

0:21:070:21:09

and we were looking to expand, go for bigger premises

0:21:090:21:14

and sell china, glassware, cutlery, all that fine dining experience.

0:21:140:21:21

# China in your hand

0:21:210:21:23

So where's your retail unit at the moment?

0:21:230:21:25

It's in Tunbridge Wells, which is about half an hour drive away.

0:21:250:21:28

The idea is to really pull people from across the Kent area

0:21:280:21:32

and get them to come out and buy high-end goods from us.

0:21:320:21:35

'So Micky's fairly confident he'll have the clientele.

0:21:370:21:40

'The question is, does he have the stock to fill this place?'

0:21:400:21:45

Micky, you have got an awful lot of space here.

0:21:450:21:49

Are you going to be using the bottom and the top floors to display all your stuff?

0:21:490:21:55

At first, we're just going to use the downstairs gallery,

0:21:550:21:59

but the potential is really for upstairs, as well,

0:21:590:22:02

as we expand, take on more and more companies.

0:22:020:22:05

So it's got a lot of potential, that's what I really like about this property,

0:22:050:22:09

we can just expand upwards and it's got all the potential there.

0:22:090:22:14

You could potentially let this place out, develop it,

0:22:140:22:17

turn it into something quite spectacular, get a bit of extra rent while you're at it.

0:22:170:22:22

We could do, although it's not really in the plan for the moment.

0:22:220:22:26

It's always nice to have a back-up, but currently,

0:22:260:22:29

we're just focusing on what we do best, which is selling fine goods to the public.

0:22:290:22:33

'There's no getting Micky away from his crystal and crockery,

0:22:330:22:37

'but the one thing that may keep his customers away is the lack of parking.'

0:22:370:22:43

The one big disadvantage with this unit is that we don't have anywhere to park your car easily.

0:22:430:22:50

There is nearby parking, about ten minutes away,

0:22:500:22:53

-but it is a slight disadvantage.

-You'll have to have a valet service.

0:22:530:22:57

-Yeah.

-That's what you need to do, offer a valet service.

0:22:570:23:00

-I think we'll be carrying a lot of china to people, yeah.

-I think you will be.

0:23:000:23:04

'Well, what this place lacks in parking Micky more than makes up for with drive and enthusiasm.

0:23:040:23:09

'He opened his first shop less than a year ago with his mum and dad

0:23:090:23:13

'and is keen for the empire to continue expanding.'

0:23:130:23:16

-So are you the driving force behind this?

-Yeah.

0:23:190:23:22

-I am a little bit.

-And how are mum and dad with that? Are they quite happy to give you the reins?

0:23:220:23:27

Yeah, pretty good. We all work very well together.

0:23:270:23:31

We're a good partnership and we discuss things through and we've had no falling out yet.

0:23:310:23:37

-How many years has the business been running?

-About ten months now.

0:23:370:23:41

-OK.

-So it's very exciting times for us.

0:23:410:23:43

Really faster than we ever expected things to be moving, but we're getting there.

0:23:430:23:48

'Micky and his parents have set aside £5,000 for the refurbishment

0:23:500:23:54

'and they also have a contingency fund.

0:23:540:23:57

'That's just as well, as Micky has concerns about the roof.

0:23:570:24:00

'He suspects it may need replacing at a cost of around nine grand.

0:24:000:24:06

'Other than that, though, it should be fairly straightforward.'

0:24:060:24:10

-How long is it going to take you to develop this?

-Probably about four months, I would imagine,

0:24:110:24:17

to get it from start to finish. But that's including getting all the products in

0:24:170:24:22

and really just doing the little fine jobs, as well.

0:24:220:24:26

-So you're not really in a hurry, are you, to get this place up and running?

-No.

0:24:260:24:30

I'd like to do it as quickly as possible but also want to do a good job.

0:24:300:24:34

Micky, hopefully, very exciting times ahead.

0:24:340:24:37

It'll be great to see what you do to this place and how spectacular it looks.

0:24:370:24:41

-Well done.

-Thanks a lot.

-Good luck with it.

0:24:410:24:43

Micky's got a lot of space to fill here and some grand old plans to go with it.

0:24:450:24:49

I am concerned about the location and the lack of parking.

0:24:490:24:53

And he's got to make the most of that infectious enthusiasm

0:24:530:24:56

to make this china business a smashing success.

0:24:560:25:00

Find out if those tills are ringing later in the programme.

0:25:000:25:04

'Coming up, you're going to have to splash the cash in Derby.'

0:25:050:25:09

It's very tired and dated, isn't it? I think money in here would be very well spent.

0:25:090:25:14

'Renovating this place isn't the only hurdle in Kent.'

0:25:150:25:20

Moving thousands of plates and breakable china is never going to be easy.

0:25:200:25:25

'But first, there's a pongy problem in Tonypandy.'

0:25:280:25:32

The house really did stink.

0:25:320:25:35

'We're back in the Rhondda Valley now to catch up with Rob.

0:25:400:25:44

'He paid £31,500 for this end-of-terrace.

0:25:440:25:48

'He bought it with his work mate Mark

0:25:480:25:51

'and they saw it as their chance to build a different future for themselves.'

0:25:510:25:55

I've always wanted to get into the property development side of it,

0:25:560:26:00

I've been a carpenter all my life, so it was just a matter of time,

0:26:000:26:03

of getting the money together and getting things kicked off and started.

0:26:030:26:08

-So is this number one?

-This is number one. Numero uno.

0:26:080:26:11

'The house needed total renovation and was riddled with damp.

0:26:110:26:16

'The bathroom was downstairs and needed to be ripped out altogether

0:26:160:26:20

'and the kitchen was in a similar state.

0:26:200:26:23

'The upstairs layout needed a rethink

0:26:240:26:26

'because of the gigantic main bedroom and tiny second room.

0:26:260:26:31

'Well, all that was eight months ago, so let's see how Rob and Mark have been getting on.

0:26:320:26:38

'The house has certainly come a long way since Rob and Mark took on the project.'

0:26:470:26:52

The house really did stink.

0:26:520:26:55

You could almost feel the damp, just walking through the house.

0:26:550:26:59

Basically, with the damp, when people have put boards and wallpaper and whatnot over it,

0:26:590:27:06

the damp seems to hold into these walls, you know?

0:27:060:27:10

And once you sort of let them breathe again, the damp can come out.

0:27:100:27:13

So once we had done that, we let the walls dry out for a week or two,

0:27:130:27:18

then we had them injected, then we rendered them, you could see the damp had gone from there,

0:27:180:27:23

so we carried on with boarding and plastering.

0:27:230:27:26

'The original kitchen in the property was basic to say the least,

0:27:260:27:30

'but Mark and Rob have spared no expense in bringing it up to

0:27:300:27:33

'and beyond the standard you might expect for a house like this.

0:27:330:27:39

'They chose to keep the bathroom in its original position on the ground floor

0:27:430:27:47

'but, again, they've transformed it to a very high specification.

0:27:470:27:51

'And in the living room, they've not just renovated and decorated to a basic standard

0:27:560:28:01

'but have been very creative to make the space as attractive as possible.'

0:28:010:28:07

What can you do to a square-roomed terraced house? It's very hard.

0:28:070:28:12

You've got to take a look at the place, see where the openings are

0:28:120:28:16

and try and see if you can put something in here, make a feature out of something that's not a feature.

0:28:160:28:22

We chucked a couple of ideas into it

0:28:220:28:24

and, obviously, we didn't want to stick to square shelving,

0:28:240:28:29

cos everyone does that, so we came up with that shape

0:28:290:28:33

and it was a winner.

0:28:330:28:35

'Upstairs is clean and, again, very well finished.

0:28:370:28:41

'Rob and Mark have made the obvious decision to maximise both the space

0:28:410:28:45

'and their profitability.'

0:28:450:28:48

We turned one room into two.

0:28:480:28:51

'The original master bedroom was too big for the size of the property

0:28:510:28:55

'so splitting it in two was a smart move.'

0:28:550:28:59

I took my calculator out, measured the square metres

0:28:590:29:02

and realised that, moving a couple of walls around up there, we could fit the third bedroom in.

0:29:020:29:07

All right, just a child's bedroom, but you can fit a single bed in there, so we went for it.

0:29:070:29:15

'Outside, they've removed the big shed,

0:29:180:29:22

're-rendered and repainted the whole house,

0:29:220:29:25

'as well as replacing the roof and the gutters.

0:29:250:29:28

'There's still a bit more to do, but surprisingly, their first renovation went pretty smoothly.

0:29:280:29:34

'Well, most of the time.'

0:29:340:29:36

Everything's been expected.

0:29:360:29:39

I said to Mark in the beginning, "There will be ups and downs,

0:29:390:29:42

"there will be times when we feel like throttling each other."

0:29:420:29:46

Them times did happen, but we got through it. You have to.

0:29:460:29:50

You just sit down and talk about it, you come to an agreement and you carry on.

0:29:500:29:57

'Rob and Mark originally had a budget of £11,000

0:29:580:30:02

'with an extra £4,000 to deal with the damp problems in the house.

0:30:020:30:06

'But judging by the standard of the finish,

0:30:060:30:09

'it's no surprise to hear they've actually spent a total of £18,000 on the work so far.'

0:30:090:30:15

There was no way I was going to do this house, get to the end and scrimp out on the fixtures and fittings,

0:30:150:30:22

on the standard of the fixtures and fittings.

0:30:220:30:24

It's worth doing in the end. If it sells that much quicker

0:30:240:30:28

just on spending a couple of extra quid on standard, then to me, that's what I'm going to do.

0:30:280:30:34

'That is a very admirable sentiment from Rob,

0:30:340:30:37

'but will it prove to be a good strategy?

0:30:370:30:40

'Time to get some expert opinion from two local estate agents.'

0:30:430:30:47

In comparison to my first visit, you cannot believe

0:30:470:30:51

once you walk in, that you're in the same property.

0:30:510:30:53

The quality of fittings in the bathroom and kitchen are first-class

0:30:530:30:58

and I think it would appeal to any family to come and live here.

0:30:580:31:02

I think he's done a great job. He's gone for a really high finish

0:31:020:31:06

which, in this market, is needed. It's definitely got the X factor.

0:31:060:31:10

It's exactly what any first-time buyer is looking for. Perfect.

0:31:100:31:13

'A glowing report.

0:31:140:31:17

'Remember, Rob and Mark purchased this terraced house for £31,500

0:31:170:31:22

'and have spent £18,000 doing it up, meaning their outlay so far is £49,500.

0:31:220:31:29

'How much value have they added?'

0:31:310:31:35

Currently, I would estimate an asking price of £75,000 to £80,000,

0:31:350:31:41

to achieve around about the £75,000.

0:31:410:31:45

I would put this on the market for £79,000, to achieve £75,000.

0:31:450:31:50

'If they achieve that, it could give the boys a pre-tax profit

0:31:500:31:54

'of just over £25,000, minus the usual selling expenses, of course.'

0:31:540:32:00

Happy with that. That's close to what we expected.

0:32:020:32:06

I didn't expect to break any ceiling price within the street,

0:32:060:32:11

no matter what was spent on fixtures and fittings.

0:32:110:32:14

It just doesn't happen. So, yeah, that's about right.

0:32:140:32:18

'If Rob and Mark decided to become landlords, the estate agents reckon this house

0:32:190:32:24

'could provide an income of around £400 per calendar month.

0:32:240:32:28

'That would mean an impressive yield of over nine percent.

0:32:280:32:31

'So, will they sell or rent?'

0:32:310:32:33

Not 100 percent on that one yet,

0:32:330:32:36

the reason being the way the market is now.

0:32:360:32:40

With the way things are, perhaps we may be better holding onto it, renting it out,

0:32:400:32:45

seeing what the market's like next year or in two years

0:32:450:32:48

and perhaps getting that extra money then.

0:32:480:32:51

'Now that Rob's first property's almost complete,

0:32:530:32:55

'does he see himself continuing to develop more properties?'

0:32:550:32:59

I would do it again, and I will be doing it again.

0:32:590:33:02

When, I do not know. We'll always have our eye open

0:33:020:33:05

and we'll still be going to the auctions, having a look.

0:33:050:33:08

If another like this comes along, I'd snap it up straight away, put it that way.

0:33:080:33:12

I'm in Mickleover, a very desirable part of Derby.

0:33:150:33:20

I'm here to see a bungalow. Some people have a bit of a thing about bungalows.

0:33:200:33:24

Uninspiring, unimaginative bits of architecture, they say. Not me!

0:33:240:33:28

I like them. I was brought up in one and I think they're fab!

0:33:280:33:33

# I always knew I was crazy for you

0:33:330:33:37

'We Brits usually tend to prefer two-storey houses,

0:33:370:33:40

'but bungalows are popular in other parts of the world, and rightly so, in my opinion.'

0:33:400:33:44

# It's fabulous

0:33:440:33:46

So will today's bungalow be the one that changes your opinion of single-storey structures?

0:33:460:33:52

You know what? I think it might.

0:33:520:33:54

It's got a garage, parking there for a couple of cars,

0:33:560:33:59

mature gardens front and back. I'm liking what I'm seeing!

0:33:590:34:04

'Yes, for that guide price of 160 grand, it looks promising.'

0:34:040:34:08

So, what does it hold across the threshold?

0:34:090:34:14

Actually, it looks all right. It's got a bit of a musty smell, like it hasn't been lived in for a while,

0:34:150:34:20

a little bit dated, but not a bad start.

0:34:200:34:22

Through into the kitchen straight away.

0:34:220:34:25

Well, it's very tired and dated, isn't it?

0:34:250:34:30

I think money in here would be very well spent,

0:34:300:34:32

cos it's not a bad space, lots of light pouring in through the window,

0:34:320:34:36

and really nice, high ceilings, which is lovely to have and not always the case in bungalows.

0:34:360:34:42

Little bit of a useful utility area out there,

0:34:420:34:45

somewhere to store your bikes and maybe have your washing machine. All in all, not bad.

0:34:450:34:50

Designs of bungalows tend to vary. Some have a large central area, which I quite like.

0:34:500:34:55

This one has a corridor which links all the different rooms, which can make it feel a bit claustrophobic,

0:34:550:35:00

although those high ceilings do counteract that slightly. But large living room there.

0:35:000:35:06

Bathroom and loo there. Bedroom one, bedroom two.

0:35:060:35:09

Third bedroom here. This is nice.

0:35:090:35:12

I like that you've got these patio doors out onto the garden. And then it continues on through there.

0:35:120:35:17

So, actually, you've got a lot of space in this place.

0:35:170:35:22

# It's fabulous

0:35:220:35:24

'And that third bedroom continues through to this other smaller room.

0:35:240:35:28

'That could be converted into a study, children's play room or en suite bathroom.'

0:35:280:35:33

Well, at the rear of the property, an absolutely humongous garden

0:35:330:35:36

split into three areas, really. Bit at the far back there,

0:35:360:35:40

that could be a nice vegetable plot, although the first time I saw it,

0:35:400:35:44

I thought, "Ooh, I wonder if you could get an access road in there".

0:35:440:35:47

Then it becomes a building plot. How exciting is that?

0:35:470:35:50

You've then got this middle area. The grass needs a bit of a mow, but a nice size, with a summer house.

0:35:500:35:55

And then as you move closer towards the house, you've got these nice mature shrubs

0:35:550:36:00

and then immediately adjoining the bungalow, this amenity area.

0:36:000:36:04

All in all, what you've got here is a fantastic asset to the property.

0:36:040:36:09

'And all this for a guide price of £160,000. What a bargain.

0:36:090:36:14

'Time to get the opinion of the auctioneer who sold it.'

0:36:160:36:19

First impressions are that it needs a bit of money spending on it.

0:36:190:36:23

It structurally seems all right. It's a bit tired,

0:36:230:36:26

it wants a refit in terms of bathroom, kitchen,

0:36:260:36:29

but lovely location, nice big garden, got a lot of potential.

0:36:290:36:33

'Talking of potential, if the new owner could get planning permission,

0:36:350:36:39

'is the bungalow worth extending?'

0:36:390:36:42

It actually calls for a better property than what is here.

0:36:420:36:46

By that, I mean you could improve it, you could add to it, extend it.

0:36:460:36:51

The ceiling value is greater than just renovating what is here,

0:36:510:36:55

so there are possibilities for extending backwards,

0:36:550:36:58

you could probably go up into the roof space, make further rooms up there.

0:36:580:37:03

'And if the new owner wanted to realise its potential, what could the completed property be worth?'

0:37:030:37:09

I think it's got to become a four-bedroom residence on two floors to do the best with it.

0:37:090:37:15

Having said that, if you renovate what is here without doing that,

0:37:150:37:20

I would say it's probably got an ultimate value of about £200,000.

0:37:200:37:24

If you go beyond that and add on extra bedrooms, rooms at the back and so on,

0:37:240:37:30

you could actually take its value to nearer £300,000.

0:37:300:37:33

'Definitely some profit to be made here, then.

0:37:330:37:36

'How would it square up as a rental investment?'

0:37:360:37:39

You'd only renovate what is here if you were going down the lettings route,

0:37:390:37:43

but assuming that you brought it up to a reasonably good standard,

0:37:430:37:47

it would have a rental income of probably about £650 per calendar month.

0:37:470:37:51

Well, it's a good, solid bungalow with loads of options in a lovely part of Derby.

0:37:520:37:58

I think it's an excellent one to go for. Let's see who fancied it when it went under the hammer.

0:37:580:38:03

It's a traditional detached bungalow. It's been extended.

0:38:050:38:09

It provides three or four-bedroomed accommodation.

0:38:090:38:13

Good residential area, ladies and gentlemen. Where do you want to be? Start me at 170.

0:38:130:38:18

165.

0:38:180:38:20

165. 160, where you like.

0:38:200:38:23

-150.

-150, thank you. 150, a spoken bid.

0:38:230:38:26

151 at the back. 151. 152.

0:38:260:38:30

153. 154.

0:38:300:38:33

55. 156.

0:38:330:38:36

157.

0:38:360:38:38

158. 159.

0:38:380:38:40

160. The bid is £160,000.

0:38:400:38:44

61. 162

0:38:440:38:47

163.

0:38:470:38:49

165. 165,000.

0:38:490:38:52

66. £166,000. All done with it? For the first time.

0:38:520:38:57

166,500.

0:38:570:39:00

167? 167.

0:39:000:39:03

167,000.

0:39:030:39:06

-Once. Twice. Third time.

-HAMMER BANGS

0:39:060:39:09

Sold at 167. Thank you.

0:39:090:39:12

'The bid that sealed the deal was placed by Miles.

0:39:140:39:17

'He bought the property for £167,000

0:39:170:39:21

'for himself, wife Helen and their baby, Hannah.

0:39:210:39:24

'Miles currently puts up for-sale signs for estate agents and Helen is an accountant.

0:39:240:39:30

'I caught up with them back at the bungalow to find out their plans.'

0:39:300:39:34

-Miles, Helen, lovely to meet you both.

-And you.

-Congratulations.

-Thank you.

0:39:340:39:38

-Why did you want to buy it?

-Cos we've been living down in Surrey or London for the last 12 years.

0:39:380:39:44

We moved down there for work and we've just started a family, it's time to come home.

0:39:440:39:49

With a young daughter, it seemed better to move closer rather than spend so much time on the M1.

0:39:490:39:54

-Right. So your grandparents are up this neck of the woods.

-Yeah.

0:39:540:39:58

-A great thing to have when you've got small children.

-Definitely.

-And they love it, too.

0:39:580:40:02

-That's my experience, anyway.

-That's the hope.

0:40:020:40:05

-Tell me exactly what you're going to do here.

-We're not exactly sure.

0:40:050:40:10

I mean, there is a case for just ripping out and starting again and just doing it up as a bungalow.

0:40:100:40:15

Alternatively, there's some space in the loft.

0:40:150:40:18

We could convert that.

0:40:180:40:21

-Or the other option is to actually stick another storey on top.

-A whole storey?

-Yes.

0:40:210:40:26

-Has anyone else in the area done that?

-I'm sure anybody's done this,

0:40:260:40:31

but all the other houses, bar next door, are two-storey already,

0:40:310:40:35

so, subject to planning, I don't see a problem for putting another storey on top of this.

0:40:350:40:39

And it'd fit quite nicely in the street. I don't think there'd be too much of an issue.

0:40:390:40:44

'Wow! That's certainly an ambitious plan.

0:40:460:40:49

'But it would increase the value and the living space here.'

0:40:490:40:53

# Just move on up

0:40:530:40:55

I'm quite confident that sticking another storey on might be the way forward.

0:40:550:40:59

-Right.

-Use a timber frame. Take the roof off, timber frame, put the roof back on and it's pretty much done.

0:40:590:41:06

Right. You make it sound remarkably easy. Have you done anything like that before?

0:41:060:41:10

Not quite as complicated as that, no.

0:41:100:41:12

Extension on the last house, but another storey is a whole new experience.

0:41:120:41:16

And would you be doing it?

0:41:160:41:18

Probably get somebody in to crane the timber framing on and put that together, but after that, yes.

0:41:180:41:24

-Wow!

-Give it a go.

-Bit of a challenge.

-Yeah. Why not?

0:41:240:41:28

'Whilst Miles and Helen have renovated a house before, this could be a whole different ball game.

0:41:290:41:35

'I hope they know what they're taking on

0:41:350:41:37

'as this kind of major structural work is usually best left to the professionals.'

0:41:370:41:43

When we bought in London, we bought a house in a similar condition to this and did it up.

0:41:430:41:48

Admittedly, it took us a long time, because we were both working full-time while we were doing it.

0:41:480:41:53

-You smirk when you say that. How long?

-Abut six years.

-Oops.

0:41:530:41:58

So what's going to influence your decision?

0:41:580:42:01

Cost, obviously, to start with, and what the house will be worth when it's done up.

0:42:010:42:08

'Fingers crossed they complete this property a little quicker than the last one.

0:42:080:42:12

'What sort of funds do they have?'

0:42:120:42:15

We thought around about £20,000 if we were just going to renovate the property as it stands.

0:42:150:42:21

In terms of the other two options, we haven't really looked at the costings as yet.

0:42:210:42:25

And in terms of inside, things like the kitchen,

0:42:250:42:28

how will that vary depending on what you decide to do?

0:42:280:42:31

The kitchen is a nice size as a kitchen at the moment, but I think we need a dining area somewhere,

0:42:310:42:36

so we're not quite sure how we'll play around with the layout to get that.

0:42:360:42:40

It very much depends on where we go with the place.

0:42:400:42:43

If we can use the loft, then obviously it frees up one of the bedrooms on the ground floor

0:42:430:42:48

to be used as a dining or entertaining area,

0:42:480:42:50

and maybe we can knock the kitchen through into the living room and make it a larger space.

0:42:500:42:56

But I don't know at the moment. I'm going to go away and think about it, suck it and see.

0:42:560:43:02

'Sounds like it's all still up for grabs.

0:43:030:43:07

'But, of course, what happens inside is only half the story.

0:43:070:43:11

'They've also got to tame that massive garden.'

0:43:110:43:14

I think that's probably where I come in. I'm quite a keen gardener.

0:43:140:43:18

My mother's a very good gardener, so she'll have to help me.

0:43:180:43:22

You can see that probably the top quarter of the garden is sectioned off

0:43:220:43:26

and, at the moment, it's just got old trees stacked in it.

0:43:260:43:29

I think, if we clear that, I'd still leave it sectioned off and have a vegetable garden up there

0:43:290:43:34

and then use the rest of the area as a family and entertaining garden,

0:43:340:43:39

have some decking and a nice barbecue area. There's so much space, it could be fantastic.

0:43:390:43:44

-Congratulations. Good luck with it.

-Thanks very much.

-We look forward to seeing how you get on.

0:43:440:43:49

So, what will Helen and Miles do to this place?

0:43:500:43:53

Restore it as it is, put a dormer in, create a two-storey structure here?

0:43:530:43:57

And will the budget hold up?

0:43:570:44:00

You can find out later in the show.

0:44:000:44:02

There's been plenty of time for our buyers to start work on their properties.

0:44:050:44:09

But have they actually done anything or have they been beset by problems?

0:44:090:44:13

-Time is money. Have they made any or have they lost any?

-Let's go back and find out.

0:44:130:44:19

'We're back in Snodland, which used to be Kent's largest village.

0:44:220:44:27

'Micky was hoping its residents would welcome his new business.

0:44:270:44:31

'He bought this former bathroom showroom at auction

0:44:310:44:34

'for £210,000, well within the guide price range.

0:44:340:44:39

'Although it was sold with planning permission for three retail units and three residential flats,

0:44:390:44:45

'Micky planned to keep things largely as they were.

0:44:450:44:48

'He was going to use it as a second premises for his business, selling china and glassware.

0:44:480:44:54

'He hoped to attract customers from all over Kent, but there was one problem.'

0:44:540:44:59

It is the one big disadvantage with this unit,

0:45:010:45:04

you don't have anywhere to just park your car easily.

0:45:040:45:08

-You're going to have to have a valet service.

-Yeah.

-That's what you need to do. Offer a valet service.

0:45:080:45:13

-I think we'll be carrying a lot of china to people.

-I think you will be.

0:45:130:45:17

'As a shop, every day it was closed, it was costing money.

0:45:170:45:22

'So Micky wanted to have it all ready for business in just four months.

0:45:220:45:25

'So, four months later, we're back.

0:45:250:45:28

'Is he ready to open his doors to the public?'

0:45:280:45:30

# I'm blue, dab-a-dee, dab-a-dah

0:45:300:45:33

# Dab-a-dee, dab-a-dah

0:45:330:45:35

'Well, you can't miss it, that's for sure.'

0:45:370:45:40

We totally repainted the shop. We're now the big blue building in Snodland, so that's good,

0:45:430:45:49

and you can see us from the other side of Snodland, which is nice.

0:45:490:45:53

And it gets people to know who you are and where you are.

0:45:530:45:56

'I'm sure the residents of, and visitors to, Snodland do.

0:45:580:46:02

'Four months ago, the interior was a huge empty space.

0:46:020:46:06

'Now it's an ideal showroom for Micky's growing business.'

0:46:060:46:10

# It's just tea for two and two for tea

0:46:100:46:15

# Me for you and you for me

0:46:150:46:19

# Can't you see how happy we could be?

0:46:190:46:24

We've totally redone the place. We've put in cabinets and flooring

0:46:240:46:29

and repainted all of the gallery

0:46:290:46:32

and moved all out stock in there.

0:46:320:46:34

There's still some work to do on our first floor, but the number one priority is opening up the store

0:46:380:46:45

and letting customers back in again.

0:46:450:46:48

'The showroom's only days away from its grand opening

0:46:480:46:52

'and Micky's thrilled with his new premises.'

0:46:520:46:55

Yeah, I'm really happy with it, actually.

0:46:550:46:58

It's really worked out quite nicely.

0:46:580:47:00

We didn't have a huge budget for things, but we seem to have done a good job

0:47:000:47:04

and it looks all nice and clean and brand new.

0:47:040:47:08

'Carpets and cabinets weren't the only new additions here.

0:47:080:47:12

'As Micky suspected, the roof needed to be replaced. That meant his nine grand contingency,

0:47:120:47:17

'on top of his £5,000 budget, did have to be spent.

0:47:170:47:21

'But the roof wasn't his biggest problem.'

0:47:210:47:24

Obviously, moving hundreds, thousands of plates and breakable china,

0:47:250:47:32

glassware around is never going to be easy.

0:47:320:47:36

But we've managed it with, I think, two broken plates so far,

0:47:360:47:40

so we did a pretty good job in the end.

0:47:400:47:43

'Micky bought the premises for £210,000

0:47:430:47:46

'and has spent a further £15,000 refitting it and replacing the roof.

0:47:460:47:51

'This gave him a total outlay of £225,000 plus legal costs.

0:47:510:47:56

'Quite an investment for a business that was formed just over a year ago.

0:47:560:48:01

'Let's see if two local estate agents think this place

0:48:050:48:08

'will give Micky a solid return.'

0:48:080:48:10

My first impressions were very good.

0:48:120:48:14

They've worked very hard achieving what they've done so far.

0:48:140:48:17

A very large showroom which looks very enterprising.

0:48:170:48:21

I must say, I was incredibly surprised. I had a feeling

0:48:240:48:28

from the outside, because it does look different and really nice,

0:48:280:48:31

but you walk in, you think you're in a London store. Very impressive.

0:48:310:48:35

'Sounds as though he's got at least two new customers.

0:48:370:48:40

'Although Micky has no intention of selling or renting out any of the floor space,

0:48:400:48:45

'I'm interested to know if the premises have increased in value.

0:48:450:48:48

'Remember, the total spend here was £225,000.'

0:48:480:48:52

I would think, in the way it's been set up, they should manage to get about £250,000, maybe £300,000,

0:48:530:49:00

depending on what planning they've got to do to the upstairs.

0:49:000:49:04

'That resale valuation is based on selling it as a leasehold

0:49:040:49:08

'and keeping hold of the freehold, but that would be pretty difficult to do here.

0:49:080:49:12

'So what difference would it make if it was sold as it is with the freehold?'

0:49:120:49:17

Should they choose to sell on the freehold of the property,

0:49:180:49:22

completed as a whole, they should achieve £360,000.

0:49:220:49:27

'So even before the first customer walks through the door,

0:49:270:49:31

'Micky's potentially added value of between £25,000 and £135,000,

0:49:310:49:36

'depending on whether or not it was sold with the freehold.'

0:49:360:49:40

It's great to hear that it's gone up by so much.

0:49:420:49:45

Hopefully, we'll find trade is really good round here and we'll progress.

0:49:450:49:49

We've got a load more manufacturers to take on board

0:49:490:49:52

and hopefully we can be selling china to people throughout Kent and beyond.

0:49:520:49:57

'It's time to go back to Mickleover, Derby, now.

0:50:040:50:08

'Miles and Helen bought this three-bed bungalow at auction for £167,000.

0:50:080:50:13

'Miles planned to do all the renovation work himself

0:50:130:50:16

'and was even considering putting a whole new storey on top of the existing structure.

0:50:160:50:22

'The place also had a huge garden that needed sorting.

0:50:220:50:25

'But it was OK, as the couple had renovated a property before,

0:50:250:50:29

'although it had taken them a while to complete it.'

0:50:290:50:32

We bought a house in a similar condition to this and did it up.

0:50:330:50:37

Admittedly, it took us quite a long time.

0:50:370:50:39

-You smirked. How quite?

-About six years.

-Oops.

0:50:390:50:44

'It's now over 12 months since we last saw the property. So let's see what they decided to do.

0:50:460:50:54

'Well, it's still a bungalow,

0:50:550:50:58

'and apart from all the building materials, it hasn't changed that much out front.

0:50:580:51:02

'But inside, it's in the middle of a complete transformation.

0:51:070:51:12

'And the back of the house is unrecognisable, too.'

0:51:150:51:19

We can see at the back that we've extended the bedroom out all the way to the boundary

0:51:210:51:26

and done away with the passageway down the side, which makes the bedroom and the garage wider

0:51:260:51:31

and bigger rooms, and then we've put a big extension for the living room on the back,

0:51:310:51:36

double doors into the garden, nice big windows to make it nice and light.

0:51:360:51:39

We decided to extend out rather than up based on the advice of local agents.

0:51:390:51:43

They suggested that people like bungalows and there's a market for them

0:51:430:51:48

and not to mess about with it too much.

0:51:480:51:50

'It took four months to get the planning permission and Miles has been hard at work ever since.

0:51:520:51:57

'Gone are the dated rooms and awkward layout.

0:51:570:52:00

'Now the living spaces are on one side of the house

0:52:000:52:04

'with the original kitchen extended to a kitchen-diner

0:52:040:52:07

'and a spacious living area stretching out to the garden.'

0:52:070:52:11

The property previously was a bit of a mish-mash

0:52:130:52:15

It was bits and pieces everywhere, nothing seemed to flow in the right place.

0:52:150:52:20

I think, by moving some of the bits and bobs around,

0:52:200:52:22

we've created something that works as a living space

0:52:220:52:26

rather than something that was just somewhere to live.

0:52:260:52:29

'The other side of the house contains the property's three bedrooms,

0:52:290:52:33

'a new bathroom, complete with a run-away washing machine at the moment,

0:52:330:52:38

'and a master bedroom, which will have an en suite bathroom.

0:52:380:52:42

'The family have been living in rented accommodation while Miles does the work.

0:52:420:52:47

'He's done the majority himself, but his dad's been keen to lend a helping hand.'

0:52:470:52:51

I've learnt an awful lot about some aspects of building that I haven't dealt with before.

0:52:510:52:56

I've never cast a concrete floor or installed windows before.

0:52:560:52:59

There's always something new. But it's interesting. I enjoy it.

0:52:590:53:03

'Helen's returned to work in London after her maternity leave,

0:53:040:53:08

'so Miles has had to juggle the renovation with looking after their daughter, Hannah.

0:53:080:53:14

'They had an original budget of £20,000,

0:53:140:53:17

'but have actually spent around £29,000 so far on the work,

0:53:170:53:22

'with an estimated £10,000 needed to finish off.

0:53:220:53:26

'But at least things are taking shape and the end is now in sight.'

0:53:260:53:31

We both feel quite good about it at the moment.

0:53:310:53:34

Now that you can finally see something happening

0:53:340:53:36

and the end seems to be quite near, we're feeling much better about it than we did a couple of months ago.

0:53:360:53:42

'With a purchase price of £167,000 and a projected renovation budget of £39,000,

0:53:420:53:49

'Miles and Helen's total outlay will be around 206 grand.

0:53:490:53:53

'But has their hard work been worth it?

0:53:550:53:59

'Time to hear from two local estate agents.'

0:53:590:54:03

First impression, there's still quite a lot of work to be done.

0:54:030:54:06

The layout seems quite good,

0:54:060:54:08

and if it's done to a good standard, it will sell very well.

0:54:080:54:11

I like the use of space and I like the extension.

0:54:110:54:16

putting an extension on the back of the property

0:54:160:54:18

has certainly increased the space inside. I think the decision to keep the property

0:54:180:54:23

as a single-storey dwelling was probably the best decision.

0:54:230:54:28

A dormer bungalow has uses,

0:54:280:54:31

but generally, it does mean you still get a downstairs bathroom,

0:54:310:54:35

which, unfortunately, can go against you in resale.

0:54:350:54:38

'It sounds good so far, but what price would this bungalow fetch once all of Miles' hard graft is done,

0:54:400:54:47

'at a total cost of around £206,000?'

0:54:470:54:50

If I put this property on the market, once completed and assuming it's done to a very good standard,

0:54:500:54:55

I'd expect it to achieve in the region of £230,000 to £240,000.

0:54:550:55:00

I would expect to achieve on this property, once finished to a high specification,

0:55:000:55:04

between £230,000 and £240,000.

0:55:040:55:07

'Those valuations could give Miles and Helen a pre-tax profit

0:55:070:55:11

'of between £24,000 and £34,000.'

0:55:110:55:15

Sounds fair enough. I know the market's slightly depressed at the moment,

0:55:150:55:19

so, yeah, sounds about right. It's what we expected.

0:55:190:55:22

'If Miles and Helen decided they wanted to rent it out,

0:55:220:55:26

'what kind of rental income could the bungalow provide?'

0:55:260:55:30

If I put this property up for rent, once completed, I'd expect it to achieve £850 per calendar month.

0:55:300:55:36

I believe the property would receive, once completed,

0:55:360:55:39

a rent of between £700 and £750 per calendar month.

0:55:390:55:43

Great. I'm paying £650 at the moment for a three-bedroom house, so sounds good to me.

0:55:430:55:49

'Miles may have learned some hard lessons here, but he hasn't been put off.

0:55:510:55:56

'He's not only added more space to the bungalow, he's also added value.

0:55:560:56:00

'How does he feel about the project now that he can see the light at the end of the tunnel?'

0:56:000:56:05

I'd definitely take on a project like this again. On the other hand, I might change what we did slightly.

0:56:050:56:12

We might look to buy something that we could actually live in while we maybe extended it,

0:56:120:56:17

rather than having to pay out a mortgage and also rental money,

0:56:170:56:22

which makes things quite tight.

0:56:220:56:24

'Miles is confident that he will be finished within a couple of months

0:56:240:56:28

'and Helen now has a new job in the local area.

0:56:280:56:31

'So the family are finally looking forward to spending more time together

0:56:310:56:35

'in their lovely new bungalow.'

0:56:350:56:37

I'm very pleased to be in our own home again as a family.

0:56:370:56:40

It'll be great to be living as one, as it were.

0:56:400:56:43

See you next time when we have more auction stories to inspire you.

0:56:450:56:49

-Yes, more stories from Homes Under The Hammer.

-See you then.

-Goodbye.

0:56:490:56:53

Subtitles by Red Bee Media Ltd

0:56:540:56:58

E-mail [email protected]

0:56:580:57:02

.

0:57:020:57:02

Martin Roberts and Lucy Alexander visit a property in the Rhondda Valley, a gigantic empty shop in Kent and a bungalow on the outskirts of Derby. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid for them when they went under the hammer.