Episode 62 Homes Under the Hammer


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Episode 62

Martin Roberts and Lucy Alexander visit a site in Ilkeston, Derbyshire, a property in Kent and another in a cul-de-sac in Warrington.


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Hello. Well, whether you bought your property as a home or an investment,

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you'll want to make sure that you've bought wisely.

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Now, they can be difficult to find,

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but what you're actually looking for is value for money.

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And one way you might find that is by going to the auction.

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From run-down flats to gorgeous, sprawling mansions,

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everything's on offer at auction.

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So here are the properties that had our buyers

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putting their hands in their pockets on today's show.

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'I find a demolition site in Ilkeston near Derby

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'that thinks it might be a town house.'

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Wow.

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They weren't kidding.

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'In Kent, I might not need a miner's helmet to visit this property,'

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but I'm thinking it's a money pit.

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'And this cul-de-sac in Warrington may be on the wrong lines.'

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THAT is a mainline railway. So if you're a train spotter, excellent.

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'All these properties have been sold at auction.

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

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-'when they went under the hammer.'

-Sold to you, sir.

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I'm in Ilkeston, a former mining town

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in the Erewash Valley on the borders of Derbyshire.

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In October, this is home to one of the biggest street fairs in the world.

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It's also one of the oldest, starting around 1200.

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However, the property I'm here to see is slightly younger than that.

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'I'm heading for the outskirts of Ilkeston now,

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'about half a mile from the town centre.

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'Most of the properties in the area are small terraced houses and flats.

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'Many people rent their homes.

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'But, for buyers, you get a lot of house for your money,

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'which is why investors are drawn here from nearby Nottingham.'

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Well, the property I'm here to see is three storeys,

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a four-bedroomed house at the moment.

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But the auction catalogue says it has potential for conversion

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into two flats. Which, given its guide price, which is £60,000,

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makes it an interesting proposition.

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However, I do understand it is work in progress.

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'The patchwork rendering needs some serious attention.

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'As does the rear yard.

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'So, not the best start,

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'even for an auction property with such a low guide price.

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'However, the double glazing means that's one job

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'you won't have to budget for.'

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Wow.

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They weren't kidding! This needs a bit more investigation.

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I need to come round.

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# It's a one-way ticket to a madman situation. #

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'It's quite a sight to see a house in this state of disrepair.

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'It's been taken right down to what looks like foundations.'

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Well! Maybe the property was previously owned by a mole,

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or somebody with, definitely, a penchant for earthworks.

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In case you can't figure out what's gone on, though,

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this would have been the level of the ground floor.

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Underneath here would have been hidden, and my guess is that,

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over time, this has got very damp, which has probably ended up

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in the floorboards rotting, maybe even dry rot.

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So what somebody's done is got rid of the entire floor and the joists.

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They're obviously digging some kind of channels in here,

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which I guess would be to create walls, or whatever.

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But whatever HAS gone on,

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there is clearly a lot of work to do to sort this out.

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Not something for the amateur DIY-er.

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'This job certainly needs the professionals.

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'The plus side to this mammoth renovation

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'is that the work already completed here has been done well.

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'The joinery is sound, and the electrics are at the first fix stage.

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'The brickwork also looks sound,

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'and there are even some tools to do the job.'

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Well, up on the top floor, more of the same.

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Definitely work in progress! So what could you do with this place?

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Well, currently it was a four-bedroomed house.

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But this place is crying out for conversion into flats.

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The auction catalogue said you could get two flats out of this.

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I reckon it's three.

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'One on each floor. I think there's easily enough space,

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'and it looks to me like that's what was being planned here.'

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'Planning permission is far from guaranteed

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'for developments like this.

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'So turning this property into three flats is not a done deal.

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'But that guide price WAS a very attractive £60,000,

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'so we asked the auctioneer who sold it for his opinion.'

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There's a strong possibility you'd get consent here for at least two flats.

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I think whether you get a third one,

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will be down to whether you can demonstrate that,

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to get a third flat,

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which inevitably would be on the top floor, you can meet

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'the building regulations.

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'But it will only be restricted in its floor space.'

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'Redeveloping the house into flats is what makes this a great opportunity,

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'as the financial returns should be healthy.'

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If it was converted into two flats,

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then I think we're looking at a rental yield

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of something like £750 a calendar month.

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If you could get a third flat out of it,

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bearing in mind the second flat then wouldn't be quite so large,

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'that's going to go up to £850-900 per calendar month

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'without any doubt.'

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Well, you will either be thinking,

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"I wouldn't touch that place with a barge pole," or,

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"Oh, good, somebody's done a lot of the hard restoration work for me."

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It's a prickly choice. Which camp do you come in?

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Let's find out what happened when it went to the auction.

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Lot number 14, Ilkeston.

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We've got a large three-storey end or corner town house,

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where a scheme of up-grading has begun.

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Where do you want to bid on this? Start me where you will.

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70,000? 65 to start me? Start it at 60, if you will. 60,000.

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£60,000, thank you. 61, someone else, 61. 62?

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62 is bid. 63? 63. 64?

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64,000 at the back of the room. 65. 66?

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£65,000. All done with it?

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At £65,000 for the first time,

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for the second time... 66 is bid.

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That's 66. 67? 68.

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68,000 is the bid on the left. 69.

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At £69,000 for the first time,

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69,000 for the second time, third and...

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70,000. At 70,000.

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71. 71?

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No? £70,000, then. All done?

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For the first time,

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the second time, the third and last time.

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Sold at £70,000, thank you.

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'The successful bid for this work in progress was made by Tom,

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'a local boy, born and bred in Ilkeston.'

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# Mr Sandman

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# Bring me a dream... #

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'Fortunately, he knows a thing or two about buildings.'

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Congratulations. You've got yourself a do-it-yourself 'make a house' kit!

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Why did you want to buy this?

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It's to start a project, really.

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A bit of an investment for the future. And hopefully,

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-one day, retire early.

-OK.

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Why take on something that's in this kind of state?

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I don't see it as a problem. A lot would see a big problem.

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I see an advantage, because half the work is done already

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and the difficult bits, the unknowns, have gone.

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Everything is known now, cos it's back to its bare bones.

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-You're a builder then?

-Yes.

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-In the building industry, yes.

-Right.

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Builders usually don't like taking on projects that other builders haven't finished.

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Often not, but this one -

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what's BEEN done has been done to a reasonable standard.

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Again, everything can be seen.

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There are bits that need altering, bits that aren't quite right.

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-But they'll be addressed.

-There's nothing hidden any more.

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All the walls have been stripped. You can see it's a framework to build on.

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It is. Everything's there.

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It's a decent building, there's no real structural problems, as such.

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Everything stands fairly well.

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And it's all good, really.

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This is the third time Tom has been successful at auction.

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He's now built up a small portfolio of houses, flats and new-builds.

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But is everything going to be straightforward for him on THIS project?

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The thing that isn't so good is the planning.

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The planning could be an issue, although there are several properties in the adjoining area

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that have got planning for three apartments.

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I don't see that as a great issue.

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I think the price I've paid is a reasonable price, and I think,

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if I get the planning, which I'm reasonably confident of getting,

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-It'll do fairly well.

-It's a risk though, isn't it?

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It is a risk. But anything's a risk.

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You need to calculate the risk and what the benefits are in the returns.

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That may sound risky, but this property is no gamble for Tom.

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As well as being a builder, he's also a qualified quantity surveyor.

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So it's not surprising that he did his homework

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before he went to the auction.

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Right. So what kind of preparation have you done

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to know how much of a risk it is?

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-Did you speak to the planners?

-I've not spoken to the planners.

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When I initially looked round,

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I did a bit of a survey of each room,

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sketched out what I know I can and can't do from past projects,

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to sensible size of rooms.

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And I've spoken to an architect friend,

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-and he assures me he doesn't see a problem.

-Right.

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The auction catalogue stated it was a four-bed house,

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which it currently is in its more-or-less state,

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or conversion for two flats.

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I believe, having surveyed it, I can get three out of it.

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There's reasonable sizes, which will be determined by the planners, ultimately.

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They'll have the final say, which I'm sure I can get.

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I don't think it suits a four-bedroom house,

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cos there's no garden - and just two parking spaces.

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But you going for three flats presumably increases your profitability quite significantly.

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It does. At two flats, it's OK, and does OK.

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At three, it becomes a good investment.

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Tell me the numbers.

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You've got, it was bought for 70,000 at the auction.

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I expect to spend about 60 on it.

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So it stands at about 130, when it's complete, hopefully.

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And in terms of what you can expect to get for each of the flats, do you have an idea?

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If I get £1,000 a month for the three combined, or 1,200, that'd be great.

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That's not a bad return on the investment. But key to it is this third flat, isn't it?

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It is definitely the key. Like I say, if I don't get it, it does OK.

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If I DO get it, it does really well.

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What are you going to do now?

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I need to get the architect back in, firm up the drawings.

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He'll submit them to the local council, and hopefully within,

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probably 10-12 weeks, I might get a reply.

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The planning should come through, then we're ready to go.

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Will you do any work on it in the meantime?

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In the meantime, it'll probably be left.

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We'll leave it as it is, and we'll talk to the planners

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just to make sure we can get what we want to do.

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Well, good luck. Quite a challenge, but it sounds like you've got the experience to make it a success.

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-There's a lot to do.

-Good. I'll let you get on with it!

-Thank you.

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So, Tom - the perfect guy to take on this project

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that would faze quite a lot of people.

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But of course, the big question is,

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is he going to get that planning permission?

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At the moment, he doesn't have the right to do what he wants.

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And of course, planners - well, you never know.

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

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Ah - Snodland in Kent.

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It sounds like some kind of mythical town in a children's novel.

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But I promise it's real.

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Look, it's all here - shops, roads, real people.

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Nothing fictional about this part of Kent.

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Having said that, there are some bestsellers in the area, and some lovely new editions, too.

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The Victorian property I'm here to see

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has been in the same ownership for 40 years.

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Now, that always gets me excited, because I'm hoping for period gems.

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Fireplaces galore, original cornicing, deep skirting,

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a ceiling rose, perhaps?!

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From the outside - well, I think things look quite promising.

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I know I need to calm down, but, as you can see, it hasn't been touched in years.

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It's still got the original front door, which is gorgeous.

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The guide was set at £90-95,000.

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I can't wait to get inside and have a good old look around.

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I know the crumbling paintwork and dicey pointing may put people off.

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But I think this house is hiding a multitude of gems.

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And whilst I'm sure it's not problem-free,

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these kind of untouched beauties get me very excited.

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Oh, bit of a stripy pink hallway!

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Now, what I want to see

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is what there is in this lovely little reception room.

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Hmm - bit disappointing. Can't see a ceiling rose.

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Can't see a beautiful, original Victorian fireplace.

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Oh no - something from the '50s!

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No deep skirting board.

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But what there is is a beautiful old Victorian bay window

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with original sashes.

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Now take a look at that!

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I'm sure whoever takes this house on will rip that out

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for something more energy efficient and a lot more economical.

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So - so far, not a BAD start.

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But I want to see some lovely old features. I'm going on a search.

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# Where is the love?

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# Where is the love?

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# Where is the love?

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# Where is the love? #

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There isn't a whole lot of love in this house,

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and that's unfortunate, because I thought there would be plenty.

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A few romantic gestures wouldn't go amiss.

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Now it is an extremely cold day today.

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But something else this house hasn't got - central heating.

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This is the second reception room.

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As you know, I'm one for opening up a space, knocking down a wall.

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But in this instance, I quite like the fact that there are two separate reception rooms.

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So I think I would keep this wall up here, because,

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at the back of this property, you could open this space up here.

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It's the kitchen.

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So you could have a nice kitchen here, a family dining space here.

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Although you are going to need to spend a fair bit of money in here.

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Because I think it was a kitchen in 1950.

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Hmm. There's not a lot going on in here.

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This house is great. It has got a certain amount of character.

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But I'm thinking... it's a money pit.

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# Money, money, money, money

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# Money... #

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It really could end up costing you a lot of cash, this one.

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You'd need a new kitchen, new central heating system, new plaster,

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new electrics, new decor.

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In fact, new everything!

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So upstairs, we've got two bedrooms -

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a nice large one to the front, slightly smaller one to the side.

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And...a really big bathroom!

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Now, I'm walking in here thinking, "This bathroom is a waste.

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"It's far too big."

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Would it be worth trying to reconfigure up here,

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and maybe creating a smaller bathroom over here,

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and calling this little area towards the back with the nice window

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a third bedroom? Would it be worth it?

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You'd get more rental return by doing that.

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I think whoever takes this on

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has really got to think about the layout up here.

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Because it's so important to get it right.

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# Money, money, money, money. #

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Out back, and there's a really nice-sized garden,

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with great access at the rear.

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But there's something that actually sparks much more interest next door.

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You can see that they've benefited from a single-storey extension.

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So maybe the owner of this house could do something similar.

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Some minor renovations are classed as "Permitted Development,"

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meaning you can carry out works without seeking approval.

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Now, this is a terraced house. So the maximum depth

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of a single story rear extension is three metres.

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And the maximum height is four metres.

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That's quite a substantial addition.

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That'd give you a much bigger family kitchen.

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But before you do start work,

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I would check with the local planning office first

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to make sure you are within your permitted development rights.

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A new rear extension would really signal a big change

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for this tired old home.

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Plus, it'd give you a much bigger kitchen -

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something this place is crying out for.

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With a guide price of £90-95,000,

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let's hear what an estate agent makes of this terraced property.

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Well, it needs all the windows replacing,

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central heating putting in,

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new kitchen, new bathroom.

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The plaster work doesn't look bad.

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But of course, when you start removing wallpaper and stuff,

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sometimes there may be some plastering that needs doing.

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Let's talk figures.

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I could put this property on the market, once it was renovated,

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for just under £140,000.

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And hope to achieve in excess of £135,000.

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And, if the new owners managed to turn it into a three-bed?

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Then it would take it up to probably £145,000.

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Maybe even a little bit more. But certainly not over £150,000.

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This is a perfect project

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for somebody who's looking to make this into a home.

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But as an investment property? You'd need to get this for a bargain price at auction.

0:18:050:18:11

It needs a lot of cash spending on it to bring it up to standard.

0:18:110:18:15

Somebody fancied it, though. Let's go to the auction and find out who that was.

0:18:150:18:19

Lot 83, we move to Snodland. Got a guide of 90-95.

0:18:190:18:23

£85,000 to start me?

0:18:230:18:25

Thank you very much. £85,000 is bid.

0:18:250:18:28

88. 88 is bid.

0:18:280:18:30

And 90. 90 I have.

0:18:300:18:32

92 is bid. And 94.

0:18:320:18:35

94. And 96. And 98.

0:18:350:18:37

100. 102. Either of you?

0:18:370:18:39

102 I'm bid. 104.

0:18:400:18:43

104 at the back.

0:18:430:18:44

106 I have. And 108.

0:18:440:18:47

108 is bid.

0:18:480:18:49

110 I have in a fresh place. And 112.

0:18:490:18:52

112 is bid. And 114. And 114 I'm bid.

0:18:520:18:56

At 116 for you now. 116.

0:18:560:19:00

At 116,000, being sold for the first time at 116.

0:19:000:19:04

117, I have. 118 and 119.

0:19:040:19:08

119 is bid. 120?

0:19:080:19:10

120, I'm bid.

0:19:100:19:14

You're both out, 120,000 for the third and final time.

0:19:140:19:20

You wouldn't want to read my mind then.

0:19:200:19:23

No, at 121, 122 I'm bid.

0:19:230:19:26

What are you going to do during the winter?

0:19:260:19:28

You'll have nothing to do if you don't buy today!

0:19:280:19:31

122 at the back of the room. He still says no.

0:19:310:19:33

Being sold for the first time at 122,000.

0:19:330:19:37

Being sold for the second time at 122,000.

0:19:370:19:40

Third and final time at 122,000 - are you all done?

0:19:400:19:43

Sold at 122,000, thank you very much.

0:19:430:19:46

Well, that was one exciting auction for Lynne and Julian.

0:19:500:19:53

The couple purchased this house as an investment.

0:19:530:19:56

Lynne works part-time in communications

0:19:560:19:58

and Julian owns and runs his own picture-framing business.

0:19:580:20:02

I went to meet them at the property to find out their plans.

0:20:020:20:05

Guys, congratulations.

0:20:080:20:10

-I hear somebody got rather excited on auction day.

-Did I?

0:20:100:20:14

I thought she might be reining me in

0:20:140:20:16

because we did go over our maximum, but I got encouraged so we got it.

0:20:160:20:21

What was your maximum, Julian?

0:20:210:20:23

Ideally, it would have been 115, but I knew I'd probably have to go to 124

0:20:230:20:28

and we ended up at 122.

0:20:280:20:31

So, a little bit over the absolute maximum, but worth it.

0:20:310:20:35

The couple are as pleased as punch with their new acquisition.

0:20:350:20:39

Ideally, they'd like to turn it around, sell on and make a profit,

0:20:390:20:43

but they're fully aware how tough the sales market is at the moment so will also consider rental.

0:20:430:20:49

What I want to know is,

0:20:490:20:50

how much research did you do into the whole buying of this property?

0:20:500:20:54

The usual background searches of what value we expect to get out of it

0:20:540:21:00

when it's done up, what sort of rental value

0:21:000:21:03

and obviously viewing the property,

0:21:030:21:05

checking it out for its condition for what we expect to spend on it.

0:21:050:21:09

It is an investment, so it's got to work for us.

0:21:090:21:12

Lynne, did you get a chance to come and have a look around the property before?

0:21:120:21:16

I didn't actually.

0:21:160:21:17

Unfortunately, I was unavailable when the viewings were taking place,

0:21:170:21:21

but I just loved the outside and I loved the road and I thought,

0:21:210:21:25

"This is going to be a nice place to do up and for someone to live in."

0:21:250:21:30

However, Julian did view the property before the auction so I won't be ticking Lynne off today.

0:21:300:21:35

You do know how I feel about people buying property without seeing it first.

0:21:350:21:39

It's an incredibly risky way to purchase.

0:21:390:21:42

"Forewarned is to be forearmed", viewers, and it could be financial suicide if you don't.

0:21:420:21:47

What about the fact that you've got a huge bathroom upstairs?

0:21:530:21:56

I walk in there and think, "This should be a bedroom."

0:21:560:21:59

Do you think there's anything there that you could tweak or play with?

0:21:590:22:04

Not really, because we've got to find room to put the boiler in.

0:22:040:22:08

Probably leave it as two bedrooms, as it is currently laid out

0:22:080:22:13

with the two bedrooms and bathroom upstairs.

0:22:130:22:16

But knocking through the wall here so that the two rooms downstairs become one.

0:22:160:22:22

It's interesting that you'll be taking that wall out there

0:22:220:22:25

because I am assuming that you'll be opening this space up here as well?

0:22:250:22:30

No, we'll leave that separate so it will be a separate kitchen

0:22:300:22:34

and then make it a through living room, the two front rooms.

0:22:340:22:39

I would have seen this as a kitchen diner

0:22:390:22:41

and a separate living room

0:22:410:22:43

so you could have one big family space here,

0:22:430:22:46

leaving that wall up there to have a nice quiet living room at the front of the property.

0:22:460:22:50

It's a possibility, I hadn't thought of it that way.

0:22:500:22:54

-Have you ever done anything like this before?

-Yes, I have.

0:22:540:22:57

The house we currently live in, we extended and completely remodelled.

0:22:570:23:02

It went from a three bedroom to a six-bedroom house.

0:23:020:23:05

How long did it take you to complete the work on your own house?

0:23:050:23:08

It took us a year before we could actually move in

0:23:080:23:11

and then it's taken another year and a bit to get it almost finished.

0:23:110:23:16

-2.5 years. You haven't got that long for this property, OK?

-OK.

0:23:160:23:20

You got to be quicker than that.

0:23:200:23:22

So, how much money have you got to spend on this place? What is your realistic budget?

0:23:220:23:27

It's between £11,000 and £15,000.

0:23:270:23:30

It would be nice to keep it down to 11,

0:23:300:23:32

but when we start talking about knocking walls down, it could go up

0:23:320:23:35

and we are talking about moving doors and windows as well.

0:23:350:23:38

So it might go up to 15.

0:23:380:23:41

What do you think your timescale will be?

0:23:410:23:43

We're planning three months - for doing it myself.

0:23:430:23:47

If we got an army of people in, we could do it quicker, but it's going to be my occupation.

0:23:470:23:51

Let's hope Julian doesn't take 2.5 years renovating this house!

0:23:510:23:57

He's given himself three months to do it

0:23:570:23:59

and he seems intent on keeping to that.

0:23:590:24:02

Will they create that third bedroom

0:24:020:24:04

or will Lynne get her airing cupboard?

0:24:040:24:07

You can find out how they get on later in the programme.

0:24:070:24:10

Coming up... In Warrington, I step back in time

0:24:110:24:14

with an old friend and a new property.

0:24:140:24:17

-It's seven years ago that we last met you.

-That's right.

0:24:170:24:20

In Kent, this unloved house finds romance.

0:24:210:24:25

Well, I like it so much I'd like to move in!

0:24:250:24:27

You know, it is starting to look good.

0:24:270:24:31

First, we track down that Ilkeston building site

0:24:320:24:35

to see how Tom got on with the planners.

0:24:350:24:37

Possibly a little ambitious, when we look back over what we've achieved.

0:24:370:24:41

We're back in Ilkeston near Derby, to see if quantity surveyor and builder Tom

0:24:430:24:48

managed to turn a townhouse-come-building-site

0:24:480:24:51

into two flats, or even three.

0:24:510:24:54

This property was full of...

0:24:570:25:00

I suppose you'd have to say "potential".

0:25:000:25:02

It had a very big holes, half-built walls and abandoned power tools.

0:25:020:25:07

But there was no planning permission

0:25:070:25:09

to make the most of those three floors.

0:25:090:25:12

The planning could be an issue,

0:25:120:25:14

although there are several properties in the adjoining area

0:25:140:25:17

that have got planning for three apartments or flats.

0:25:170:25:20

It's a risk, though, isn't it?

0:25:200:25:23

It is a risk, but anything's a risk.

0:25:230:25:24

You need to calculate it and what the benefits are in the returns.

0:25:240:25:28

Tom bought this three-storey townhouse when it was being rebuilt.

0:25:320:25:36

He paid £70,000, and planned to complete the renovation work for £60,000.

0:25:360:25:40

He estimated it would take him six months in total.

0:25:410:25:44

Well, doesn't time fly?

0:25:480:25:50

We've come back a whopping two years later

0:25:500:25:53

to see if Tom has three flats, or two,

0:25:530:25:56

or a bigger building site.

0:25:560:25:58

Tom has turned an abandoned building site

0:26:060:26:09

into three bright, self-contained flats.

0:26:090:26:11

He got planning approval to make each floor a separate flat,

0:26:180:26:21

and built a rear extension

0:26:210:26:23

to make the top two flats an equal size.

0:26:230:26:27

He now has two one-bedroom flats -

0:26:280:26:30

there's one on the first, and one on the second floor -

0:26:300:26:33

and a two-bedroom flat on the ground floor.

0:26:350:26:38

The original timescale was about six months, which was a little ambitious,

0:26:410:26:45

when we look back over what we've done and achieved.

0:26:450:26:49

The house has been completely refurbished, from top to bottom.

0:26:490:26:53

Originally, there were cellars, which have been in-filled.

0:26:530:26:56

The concrete floors have been installed,

0:26:560:26:59

new foundations for the staircase.

0:26:590:27:01

I think there was around 2,000 concrete blocks installed there.

0:27:010:27:05

Spoken like a true quantity surveyor!

0:27:050:27:09

Tom was able to draw on his years of experience as a builder and surveyor

0:27:090:27:13

when it came to making the planning application as strong as possible.

0:27:130:27:18

The original building is very much as it was, apart from the extension.

0:27:180:27:23

We've left the window openings and the door positions as they were,

0:27:230:27:27

to ease the planning application. It went straight through,

0:27:270:27:31

and we've worked the rooms around the windows

0:27:310:27:33

and the openings we already had.

0:27:330:27:36

And that actually worked quite well in the end.

0:27:360:27:39

Pretty smart, huh? Having the imagination to work around what a building already has

0:27:390:27:44

can save you time and money.

0:27:440:27:46

If I cast us mind back to two years ago,

0:27:460:27:49

this was a big, open cellar at that time.

0:27:490:27:51

We've dismantled the chimneys, put them into the cellars, in-filled, compacted,

0:27:510:27:55

laid concrete on top with insulation to current building regulations.

0:27:550:27:59

And now we have a suitable floor for the carpets to be applied to.

0:27:590:28:03

Tom wanted the two flats upstairs to share their own separate entrance

0:28:030:28:07

so he squeezed in a staircase.

0:28:070:28:10

The staircase we had to design to make it as small as possible so we could enhance the area

0:28:100:28:16

of each flat and it made it really quite tight although we have come up with a design which is suitable

0:28:160:28:21

and again works quite well to access both the first and second floors.

0:28:210:28:25

The flats on the first and second floors are identical.

0:28:250:28:28

They have a good size living room with a short corridor

0:28:280:28:32

off to a galley kitchen.

0:28:320:28:34

There's one decent-size double bedroom and well-designed shower room and toilet.

0:28:340:28:40

This is the second floor of the building where we have the second floor extension.

0:28:400:28:45

It consists of, on the right, the bathroom,

0:28:460:28:49

which has the shower room, a WC and a sink with a tiled floor.

0:28:490:28:53

The extension consists of around 1,000 blocks.

0:28:530:28:56

and is externally rendered in a white render with a uPVC window to the side.

0:28:560:29:01

Well, it took two years, but has Tom done enough to this

0:29:010:29:05

former townhouse to attract attention?

0:29:050:29:08

We asked two local property experts their opinions.

0:29:080:29:11

I think he's done a fabulous job.

0:29:120:29:15

The use of space, I think, works very well.

0:29:150:29:17

Certainly privacy, it's nice that downstairs has a separate entrance

0:29:170:29:21

and off-street parking, which is a bonus.

0:29:210:29:23

Demand would be for the rental market.

0:29:230:29:26

The decor is finished to a pretty high standard for three small flats.

0:29:260:29:30

I'm pretty impressed with the finish.

0:29:300:29:33

I see young professionals living in these properties.

0:29:330:29:37

They're the perfect first home.

0:29:370:29:39

Tom bought the entire property for 70,000 and completed

0:29:400:29:44

the renovation work for 60,000, bringing his total outlay to 130,000.

0:29:440:29:50

Time to hear how much they think the building could sell for.

0:29:500:29:54

In the present market I would anticipate probably

0:29:540:29:58

a suggested asking price of around £45-50,000

0:29:580:30:01

for the one-bedroom flats and for the two-bedroom flat

0:30:010:30:05

I'd probably expect a suggested asking price of around £55,000.

0:30:050:30:10

The ground floor flats should achieve between £55-60,000.

0:30:100:30:16

The one-bedroom flats should achieve between £40-50,000.

0:30:160:30:20

Those valuations add up to between £135-160,000

0:30:200:30:25

and would mean a profit of between £5-25,000 before costs and expenses.

0:30:250:30:31

Sale value I've not considered too much because ultimately, I do want to let them

0:30:330:30:38

although it's something I'd expect to hear.

0:30:380:30:40

No surprises there. Both property experts agree

0:30:400:30:44

with Tom that rental's the way to go for the short to medium term.

0:30:440:30:49

I'd expect around £400 per-calendar- month for the one-bedroom flats

0:30:490:30:53

and for the two-bedroom flat I would probably expect around 425.

0:30:530:30:57

The ground floor should be achieving around the £400 per-calendar-month mark.

0:30:570:31:02

The first and second floor flats should achieve 350,

0:31:020:31:06

maybe £375 per-calendar-month.

0:31:060:31:09

The long-term future for this property and to suit my needs is to let it out.

0:31:090:31:14

I'm happy with the returns at around £400 for each property,

0:31:140:31:17

That's the way we will go.

0:31:170:31:19

So local developer Tom knew what he was doing

0:31:190:31:22

when he took the risk on this place

0:31:220:31:24

and it turned out pretty well for him.

0:31:240:31:26

I think auctions are the way forward, to be honest.

0:31:270:31:30

We seem to be able to buy property at the right price,

0:31:300:31:33

which enables us to have money to regenerate them

0:31:330:31:37

to a suitable standard for either resale or for letting.

0:31:370:31:40

# I got 'em all buzzin' buzzin', buzzin', buzzin'

0:31:420:31:45

# Like da-da-da-da-da-da-da. #

0:31:450:31:47

I'm in Warrington, 16 miles east of Liverpool

0:31:470:31:50

and 19 miles west of Manchester so useful proximity to two major cities.

0:31:500:31:56

And with a buzzing town centre and historical architecture,

0:31:560:32:00

it provides a pleasant alternative to its more urban neighbours.

0:32:000:32:03

# I got 'em all buzzin' buzzin', buzzin', buzzin'

0:32:030:32:06

# Like da-da-da-da-da-da-da

0:32:060:32:08

# Man, I got the world buzzin'. #

0:32:080:32:10

The property I'm here to see is in an area known as Bewsey,

0:32:100:32:13

one of the more affordable parts of Warrington.

0:32:130:32:15

Lots of development here over the last ten years

0:32:150:32:18

but the house that was up for auction was probably built a lot before that.

0:32:180:32:22

It's this three-bed end-of-terrace. Had a guide price of £55,000.

0:32:220:32:26

Doesn't look bad from the outside, let's take a look inside.

0:32:260:32:29

Positioned at the end of a cul-de-sac means that one great attraction

0:32:340:32:39

of this place is it will be nice and quiet and peaceful.

0:32:390:32:42

So what have we got? Well, nice open-plan layout down here for sure.

0:32:450:32:49

Stairs up to the bedrooms there and this is your sitting room.

0:32:490:32:53

Somebody's obviously tarted it up at some point,

0:32:530:32:56

we have a nice, modern-looking fire

0:32:560:32:58

and laminate flooring doesn't make it look too bad.

0:32:580:33:00

Through this large double doorway into your kitchen.

0:33:000:33:03

Again, it's perfectly serviceable. Fairly modern,

0:33:030:33:06

It's not the highest quality,

0:33:060:33:08

but actually as a starting point, a few white goods in here

0:33:080:33:13

and you could be renting this place out. Ooh!

0:33:130:33:15

Bewsey is a popular place to live, which means it's a good place for property investors.

0:33:240:33:29

It's the perfect place to pick up a buy-to-let

0:33:290:33:32

so with a guide price of 55,000, I'm starting to think this place

0:33:320:33:36

has the potential to be a nice little earner.

0:33:360:33:38

So upstairs, any big surprises? Well, no, actually. Only good ones.

0:33:400:33:46

Three bedrooms, two reasonable size doubles and a box room,

0:33:460:33:49

but from a letting point of view, still got three rooms, good news. And then the bathroom.

0:33:490:33:54

With a bit of tarting up, in fact not much at all, that's perfectly serviceable.

0:33:540:33:59

So all in all, internally, wow! Ready to rock and roll.

0:33:590:34:04

Now, you might like a riot of colour in your house,

0:34:090:34:13

but others won't share your taste. If you're planning to rent or sell,

0:34:130:34:18

then tone it down is always the best advice.

0:34:180:34:21

So out the back through the really nice double patio doors there

0:34:220:34:25

into the garden and it's a good-sized space.

0:34:250:34:28

One of the benefits of being on the end, a nice-size corner plot.

0:34:280:34:31

The garden's in need of tender loving care.

0:34:310:34:34

These fence panels have blown down.

0:34:340:34:36

Now, you should spend a bit of time getting this sorted.

0:34:360:34:40

You may be able to use these again, but a fence panel like that will cost £20.

0:34:400:34:45

For the sake of an argument with your neighbour, put new ones in, start things off on a good footing.

0:34:450:34:51

The only negative out here which I've just noticed

0:34:510:34:54

is that that is a mainline railway so if you're a trainspotter, excellent.

0:34:540:34:59

If you want complete peace and quiet, hmm, better look somewhere else.

0:34:590:35:03

With the double-glazing in reasonably good condition, you might get away with it.

0:35:080:35:12

Just a tip, though. If you're viewing a property with a potential noise hazard,

0:35:120:35:17

wait until a train or plane comes along before you make your decision.

0:35:170:35:21

Then you can decide if it's something you could live with.

0:35:210:35:25

It's time to find out if a local estate agent thinks this property

0:35:250:35:28

was worth its £55,000 guide price.

0:35:280:35:32

Bewsey is a popular area with first-time buyers

0:35:320:35:35

and some investors looking to expand their portfolio.

0:35:350:35:39

There's good links to motorways.

0:35:390:35:41

You can walk to Warrington town centre from here

0:35:410:35:44

and there's also good train links from the area.

0:35:440:35:46

The railway may put some potential buyers off.

0:35:480:35:51

It's not a busy line,

0:35:510:35:52

but some people would discount the property on that basis.

0:35:520:35:56

Having said that, it is on a quiet road

0:35:560:35:58

and I think most people would take that over having houses

0:35:580:36:02

looking in or any sort of major, busy road behind the property.

0:36:020:36:05

Once renovated, what does the estate agent think it could be worth?

0:36:050:36:10

Once renovated the property would achieve somewhere in the region of £80-82,000.

0:36:100:36:16

It would rent for around £425 per-calendar-month.

0:36:160:36:20

Well, what can you say? This house really does have a lot going for it.

0:36:230:36:27

Not much work to do,

0:36:270:36:29

you could either move in or rent it out pretty much as it is.

0:36:290:36:32

A big bonus and for that guide price, a great one to go for.

0:36:320:36:36

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

0:36:360:36:39

So we move on to lot 167.

0:36:390:36:42

Three-bedroom end-terrace house, vacant possession, big property.

0:36:420:36:46

Asking you for £30,000. Someone give me 30 for it? 30, here.

0:36:460:36:51

Got 30, here. Looking for 35. 35, there.

0:36:510:36:54

40, 45. 45 now? 50, sir? 55?

0:36:540:37:00

56? 56, I'll take.

0:37:000:37:02

I'm looking for 57. Gentlemen furthest away from me at £57,000.

0:37:020:37:08

58, sir. 59? 60? 61, 62?

0:37:080:37:13

Are you coming in at 62? You are doing.

0:37:130:37:17

63, then. It's you, sir. 63 here, he's back. 64? 64.5.

0:37:170:37:23

65, sir? 65.5.

0:37:230:37:27

Big shake of the head.

0:37:270:37:29

Are we all finished? I'm going to sell at £65,000 for the first time,

0:37:290:37:33

65.5 next to you. 66 to you, sir? 66.5?

0:37:330:37:40

No? Shaking his head. Back with you at 66, sir, for the first time,

0:37:400:37:44

second time at £66,000. Are we done?

0:37:440:37:46

GAVEL BANGS

0:37:460:37:47

Sold to you, sir. Paddle number 144, well done.

0:37:470:37:50

The new owner of the house isn't any stranger to property

0:37:520:37:55

or to the show.

0:37:550:37:57

# Baby, come back

0:37:570:37:58

-# Come back, baby

-Yeah!

-#

0:37:580:38:00

Lucy met Adrian seven years ago,

0:38:000:38:03

when he purchased a three-bedroom mid-terrace house in Wallasey.

0:38:030:38:07

Well, Adrian, the kitchen,

0:38:070:38:09

-one of the many rooms that needs a bit of cosmetic attention.

-Yes!

0:38:090:38:12

-Just a tad(!) And your budget is...?

-In the region of 6,000.

0:38:120:38:17

-For the whole house?

-Yes.

0:38:170:38:19

And with that budget of only £6,000, Adrian turned an abandoned

0:38:190:38:23

and vandalised house into a light and clean home.

0:38:230:38:27

I caught up with him to see how the property market

0:38:270:38:30

has been treating him during the last seven years.

0:38:300:38:34

-Adrian, good to meet you. Welcome back to the show.

-Thank you.

0:38:340:38:37

-You had Lucy time last time, I believe?

-Yes.

0:38:370:38:39

-It's seven years ago that we last met you.

-That's right.

0:38:390:38:43

-Buying properties on the Wirral.

-Yes.

-How's it gone in those seven years?

0:38:430:38:46

It's gone very well, Martin, yes. We've expanded the business, more new clients.

0:38:460:38:50

It's been tough times in the property world in general.

0:38:500:38:53

-At the start of the period, all quite buoyant.

-Yes.

0:38:530:38:56

In the latter stages, a little bit not.

0:38:560:38:58

There was a quieter period in the middle.

0:38:580:39:00

Lately, it's been very good for us with the drop in the prices and the rental demand,

0:39:000:39:05

so it's been very good lately.

0:39:050:39:07

Remind me what you do.

0:39:070:39:08

We source properties on behalf of clients and investors.

0:39:080:39:12

We'll source them, offer the package to them,

0:39:120:39:15

explain the refurbishment costs, then we do the rental for them, we manage it.

0:39:150:39:18

It's basically the whole package.

0:39:180:39:21

Adrian's been buying for others for over seven years now

0:39:210:39:24

and since his first appearance on Homes Under The Hammer, his business has grown.

0:39:240:39:29

-Tell me why you wanted to buy this place.

-Basically a good, solid house.

0:39:300:39:35

Good, solid investment. Nice three-bedroom, good-size gardens.

0:39:350:39:39

Not too much to do to it, basic refurbishment.

0:39:390:39:41

Good, solid family house that should rent very well.

0:39:410:39:44

In terms of what needs to be done to it, you might not like the colours.

0:39:440:39:47

Once we change them, strip the wallpaper,

0:39:470:39:50

get rid of the woodchip for a start upstairs.

0:39:500:39:52

New carpets, new decor from top to bottom.

0:39:520:39:55

We will take down the shed outside, which is a bit of an eyesore,

0:39:550:39:58

it's rotting, so that will go away and we'll extend the patio area.

0:39:580:40:01

-New fencing. The exterior will be done. So...

-What about the kitchen?

0:40:010:40:07

The kitchen can stay. A good, solid kitchen. Nice and modern.

0:40:070:40:10

Same as the bathroom. Good, modern suite.

0:40:100:40:12

-So nothing too dramatic at all, really?

-No, no, basic.

0:40:120:40:15

What kind of costs have you got aside?

0:40:150:40:17

For this one, we're looking at between 2,500-3,000 for the budget.

0:40:170:40:21

-And timescales?

-This will be done in three to four weeks.

0:40:210:40:25

I get the feeling that nothing can go wrong with this place.

0:40:260:40:29

It's such a straightforward job but is it sound financially?

0:40:290:40:34

Very happy with what we paid.

0:40:340:40:35

Originally at their peak, these houses were fetching

0:40:350:40:38

110, 115,000, so very good value.

0:40:380:40:41

Certainly at the price you paid. Would you have gone a bit higher?

0:40:410:40:44

Maximum, 70,000 we had so we were very happy it came under that.

0:40:440:40:50

By managing all the work required to buy, renovate then rent or sell

0:40:510:40:55

on behalf of investors, Adrian has created a business,

0:40:550:40:58

which is continuing to do well despite the current market difficulties.

0:40:580:41:02

What were you doing before this?

0:41:020:41:04

-I was an antiques dealer, Martin, for 17 years.

-Wow!

0:41:040:41:09

What made the move from antiques to property?

0:41:090:41:11

The antiques business was going down worldwide.

0:41:110:41:14

There was a depression in that market,

0:41:140:41:16

so I looked for something else to get into.

0:41:160:41:18

I've always been interested in property,

0:41:180:41:20

it's always taken my eye so that was a good opportunity to get into that market.

0:41:200:41:24

But when you were doing antiques, presumably you did auctions as well?

0:41:240:41:28

Yes, so I have lots of experience, 20-plus years' experience at auctions.

0:41:280:41:33

Is there much difference between antique and property auctions?

0:41:330:41:36

Not really, no.

0:41:360:41:37

It's a slower auction but they're selling more expensive pieces.

0:41:370:41:41

Obviously more expensive products but very, very similar.

0:41:410:41:44

-Congratulations.

-Thank you.

-Looking forward to seeing how you get on.

-Thank you.

0:41:440:41:48

Well, I wonder what the next seven years

0:41:500:41:52

have in store for the property market.

0:41:520:41:55

Lots of ups and downs, I'm sure.

0:41:550:41:57

For now, Adrian has got himself a good buy with this place.

0:41:570:42:00

He's not going to spend too much money sorting it out.

0:42:000:42:03

I'm sure he'll do just fine.

0:42:030:42:05

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

0:42:050:42:07

Well, the clock has been ticking

0:42:100:42:13

and work should have started on our properties.

0:42:130:42:16

Have those piles of bricks and bags of cement gone?

0:42:160:42:19

-Will the paint be dry on the walls?

-Let's go back and find out.

0:42:190:42:23

We're back in Snodland, Kent, to find how Julian and Lynn

0:42:240:42:28

got on with their two-bedroom mid-terrace house.

0:42:280:42:31

It had certainly been unloved for a long time

0:42:310:42:34

but that meant there were some enticing opportunities to improve it

0:42:340:42:37

and some even bigger opportunities to spend a lot of cash.

0:42:370:42:41

I had some thoughts on what to knock down

0:42:410:42:45

but then so did Julian and Lynn.

0:42:450:42:47

What about the fact you've got a huge bathroom upstairs?

0:42:470:42:50

I walk into it and think "this should be a bedroom".

0:42:500:42:53

Is there anything there you could tweak or play with?

0:42:530:42:56

Probably leave it as two bedrooms.

0:42:560:42:58

Principally leaving it as it is currently laid out,

0:42:580:43:00

with the two bedrooms and bathroom upstairs

0:43:000:43:03

but knocking through the wall here.

0:43:030:43:05

So the two rooms downstairs become one.

0:43:050:43:09

# Where is the love?

0:43:090:43:10

# Where is the love?... #

0:43:100:43:12

Julian and Lynn bought this semi-detached house for 122,000.

0:43:120:43:17

They had a budget of £11-15,000 set aside for the refurbishment.

0:43:170:43:21

Although their last house took two and a half years to redesign,

0:43:210:43:25

they were confident they could fix this one in three months.

0:43:250:43:29

Well, we gave them a little extra time and came back six months later

0:43:310:43:36

to see what walls are still standing and how many bedrooms there are now.

0:43:360:43:40

# Only want to make things right

0:43:410:43:44

# Well, I only want to make things right... #

0:43:450:43:50

Julian and Lynn have transformed this neglected, old mid-terrace

0:43:500:43:54

into a really lovely family home.

0:43:540:43:58

# Only want to make things right... #

0:43:580:44:02

The bijou kitchenette is now a workable kitchen

0:44:020:44:05

with good access to the dining room through a much bigger doorway.

0:44:050:44:09

Although there are some finishing touches to add -

0:44:090:44:11

they still need a banister on this open staircase -

0:44:110:44:14

the construction side of the project is complete.

0:44:140:44:17

They kept the wall between the front sitting room

0:44:170:44:20

and the dining room, giving them two downstairs spaces.

0:44:200:44:23

But this house had been hiding one or two major problems

0:44:230:44:26

and it became a whole lot more work than it first appeared.

0:44:260:44:31

We had to get rid of 40 years of neglect, basically.

0:44:310:44:34

So we've done central heating, new windows, new kitchen,

0:44:340:44:39

bathroom and we've created a third bedroom as well.

0:44:390:44:43

Of course, all the electrics and plumbing,

0:44:430:44:46

all the first fit had to be done

0:44:460:44:48

because there literally was nothing in here.

0:44:480:44:50

So we took it down to pretty much a brick shell with a roof on it

0:44:500:44:55

and started again.

0:44:550:44:56

So apart from what you can obviously see - it's all been replastered and repainted,

0:44:560:45:00

we've had work to do with the floors, under the floors.

0:45:000:45:05

There is no one major thing that caused us an issue.

0:45:050:45:10

It's just the collection of everything.

0:45:100:45:12

-It was just the neglect.

-Yeah.

0:45:120:45:14

-A very unloved house, it was.

-Oh, completely.

0:45:140:45:18

We hope we've transformed it into something that someone else is going to love

0:45:180:45:22

as much as we do.

0:45:220:45:24

# Only want to make things right... #

0:45:240:45:28

Apart from taking all of the walls down from the hallway

0:45:280:45:33

right through, past the staircase here,

0:45:330:45:36

we also decided to open up the dining room to the kitchen

0:45:360:45:40

to make it into a complete kitchen-diner.

0:45:400:45:42

Obviously, it's been completely refitted with a new kitchen.

0:45:420:45:46

We've got to finish it with all the doors, et cetera.

0:45:460:45:49

We think it now makes a much nicer environment as a kitchen/diner

0:45:490:45:53

rather than small, separate rooms.

0:45:530:45:56

Upstairs, as you may remember,

0:45:560:45:58

I thought the bathroom was oversized.

0:45:580:46:00

Well, just as I suggested,

0:46:000:46:02

that huge room was turned into a third bedroom.

0:46:020:46:05

And they divided up the rear bedroom

0:46:060:46:08

to make one small bedroom and a bathroom.

0:46:080:46:11

You may remember that in this room, we had the bathroom originally.

0:46:110:46:17

So, quite a large room for the bathroom.

0:46:170:46:19

And then just one bedroom over here.

0:46:190:46:21

So we decided to move the bathroom over here

0:46:210:46:24

and subdivide the room to create a small bedroom and the bathroom.

0:46:240:46:29

That meant taking all of these walls down and rebuilding them

0:46:290:46:34

to create those two rooms.

0:46:340:46:36

We're very pleased with the result.

0:46:360:46:38

# The mo-mo-mo, the money

0:46:380:46:40

# Mo-mo-mo, the money... #

0:46:400:46:42

So many walls coming and going.

0:46:420:46:44

Did Julian and Lynn manage to stay

0:46:440:46:46

within their original £11-15,000 budget?

0:46:460:46:50

We're around the 15 mark, we haven't got a lot more to spend.

0:46:510:46:54

Despite the fact it's not finished,

0:46:540:46:56

we've got all the materials to finish it.

0:46:560:46:59

And of course, although it may take a bit longer,

0:46:590:47:02

you can save a lot of money

0:47:020:47:04

if you're willing to get your own hands dirty.

0:47:040:47:06

When I was thinking about the schedule,

0:47:060:47:09

I did think we'd have other people in to help with the work.

0:47:090:47:12

But as I got into it, I started to do it all myself.

0:47:120:47:15

'There's still the outside to do.

0:47:150:47:17

'We've got to do some work on the front

0:47:170:47:19

'and paint the outside at the back.

0:47:190:47:21

'If we're lucky, we'll get it done in a month.

0:47:210:47:23

'There was one point - we'd got the kitchen almost up to completion,'

0:47:230:47:27

and I said, "I like it so much, I'd like to move in."

0:47:270:47:30

You know, it is starting to look good.

0:47:300:47:32

It's time to call in two local property experts,

0:47:320:47:36

to see if they see the love too.

0:47:360:47:39

I think they've done a very good job of the renovation.

0:47:400:47:43

I think it's a good family home, three good bedrooms,

0:47:430:47:46

nice bathroom, quality fittings.

0:47:460:47:48

Generally, a very good standard.

0:47:480:47:50

I think what they've done is really, very, very nice.

0:47:500:47:53

They've created three bedrooms, which is what this property needed.

0:47:530:47:56

The whole property is really very, very nice.

0:47:560:47:59

Julian and Lynn bought the house for 122,000.

0:48:010:48:05

They spent £15,000 on the refurbishment,

0:48:050:48:08

bringing their total outlay to 137,000.

0:48:080:48:12

What do the estate agents think the property is worth now?

0:48:120:48:15

I think when the property is completed,

0:48:170:48:19

I think they'll probably be able to achieve around about £150,000.

0:48:190:48:24

They might be looking at marketing it in the region of £150,000

0:48:240:48:27

to £155,000.

0:48:270:48:29

If the house was sold, it could make a profit of between

0:48:290:48:33

£13,000 and £18,000, before tax and selling costs.

0:48:330:48:38

Sounds a touch on the low side.

0:48:380:48:40

Because we've had experience of buying other property on this road,

0:48:400:48:45

just very recently, so I'd expect we'd get a bit more than that.

0:48:450:48:49

But Julian and Lynn are keen to rent it out,

0:48:510:48:54

so what could they get for that?

0:48:540:48:56

This property would rent very well.

0:48:560:48:58

I'd think that they're going to be looking at getting

0:48:580:49:01

somewhere around about £725 per calendar month

0:49:010:49:04

to about £750 per calendar month.

0:49:040:49:07

I think if they were to let this property,

0:49:070:49:09

they'd achieve around £750 per calendar month.

0:49:090:49:13

750 is absolutely spot on.

0:49:130:49:16

Again, we know these houses rent out at 750 at the moment.

0:49:160:49:20

Rental values are good at the moment

0:49:200:49:22

so that's what we're going to do, perhaps for the next five years.

0:49:220:49:25

Well, Julian and Lynn made exactly the right decisions

0:49:250:49:29

when they renovated this house, but as this was their first auction,

0:49:290:49:32

the question is, will they be repeating it?

0:49:320:49:36

I don't want to take on one that needed quite so much doing to it.

0:49:360:49:40

It's been a labour of love,

0:49:400:49:43

I've enjoyed it and I love the result, so...

0:49:430:49:46

But...not quite such hard work.

0:49:460:49:49

Something that's a little less intensive would be good,

0:49:490:49:52

that needs a quicker makeover,

0:49:520:49:55

rather than getting down to the bare bones of a building

0:49:550:49:58

would be more preferable, yeah.

0:49:580:50:00

We're back on the outskirts of Warrington

0:50:030:50:05

to see how Adrian got on with this end-of-terrace

0:50:050:50:08

in a nearly quiet cul-de-sac.

0:50:080:50:10

The house had gone a teeny bit colour crazy,

0:50:100:50:14

so we returned to see if there was a golden property

0:50:140:50:16

hiding underneath that rainbow.

0:50:160:50:19

Ex-antique dealer Adrian now buys, refurbishes

0:50:190:50:22

and manages properties for a number of investors.

0:50:220:50:25

He keeps a close eye on the market and knew a bargain when he saw one.

0:50:250:50:29

He snapped up this house for only 66,000 quid.

0:50:290:50:32

Very happy with what we paid.

0:50:320:50:34

Originally, the peak of these houses were fetching 110, 115,000.

0:50:340:50:38

So very good value.

0:50:380:50:39

With a refurbishment budget of 2,000 to 3,000,

0:50:400:50:43

this would have to be a tightly-run development

0:50:430:50:46

to stay on time and on budget.

0:50:460:50:48

The trick would be to know what to leave and what to change.

0:50:480:50:53

We've come back two months later

0:50:540:50:56

to see if things have calmed down on the technicolour interior.

0:50:560:51:00

# And if this ain't love

0:51:000:51:01

# Why does it feel now

0:51:010:51:03

# Why does it feel now

0:51:030:51:05

# Why does it feel now

0:51:050:51:08

# Why does it feel so good? #

0:51:080:51:11

Those multi-coloured rooms have been neutralised

0:51:130:51:16

with a palette of bright natural tones.

0:51:160:51:19

The house is now much more tenant-friendly,

0:51:190:51:22

offering a well-proportioned family home in a great location.

0:51:220:51:26

Since you were last here,

0:51:320:51:34

we've decorated the house from top to bottom.

0:51:340:51:36

The kitchen, a general decoration, we've made it nice and neutral.

0:51:360:51:41

It was bright orange, the walls.

0:51:410:51:42

The tiles, we've left as they are, cos it's a buy-to-let property

0:51:420:51:45

so there's no need to change those, just a clean-up.

0:51:450:51:48

The same with the units, nice modern kitchen, we've left that as it is.

0:51:480:51:51

We've put new light fittings throughout the downstairs as well.

0:51:510:51:56

Remember that property manager Adrian is spending someone else's money.

0:51:560:52:01

The refurbishment budget was estimated at only £2,000 to £3,000

0:52:010:52:05

but he has made that go a very long way.

0:52:050:52:08

Upstairs, we've redecorated completely.

0:52:100:52:12

It was very bright wallpaper, it was woodchip in the bedrooms.

0:52:120:52:15

We had a purple room, a lime green room and a pink room.

0:52:150:52:18

We've changed all that, it's all nice and neutral now.

0:52:180:52:21

We've put nice, new modern light fittings in,

0:52:210:52:24

new carpets throughout

0:52:240:52:26

and we've put new blinds throughout the whole house.

0:52:260:52:29

The budget we had was 2,500 to 3,000 originally.

0:52:290:52:32

We came in under budget, which was great for the clients.

0:52:320:52:36

We came in at 2,800 for the complete refurbishment.

0:52:360:52:39

This particular client who bought this house,

0:52:390:52:41

he's bought one property per year for the last five years.

0:52:410:52:44

He's never seen any of his properties,

0:52:440:52:46

so it's really important to have the trust element.

0:52:460:52:49

He relies on me to buy the right property at the right price,

0:52:490:52:52

and to keep on top of the budget.

0:52:520:52:54

It's about keeping the client happy and producing the right numbers.

0:52:540:52:58

The trick with investments like this

0:52:590:53:01

is to keep your personal tastes out the way,

0:53:010:53:03

concentrating on what's needed rather than what you fancy

0:53:030:53:06

and Adrian does a good job at this.

0:53:060:53:09

So, in the landing here, we've just generally decorated,

0:53:110:53:14

new paintwork, we've done all the woodwork as well.

0:53:140:53:16

Nice, new carpets, nice and neutral colours.

0:53:160:53:20

The bathroom, the suite was fine, it's a nice, modern bathroom suite.

0:53:200:53:25

We've just put down new flooring and decorated the walls.

0:53:250:53:28

This end-terrace sits on a large garden plot

0:53:280:53:31

and cost-efficient as ever,

0:53:310:53:32

Adrian's sorted out the tired old facade of the property

0:53:320:53:36

and the tumbledown fencing at the rear.

0:53:360:53:39

With the outside, we've freshened up the masonry paint

0:53:390:53:42

and the base of it.

0:53:420:53:44

Upstairs, we've timber treated the outside, just for protection.

0:53:440:53:49

The main changes are over here on the far side.

0:53:490:53:51

Mainly cosmetic work again,

0:53:510:53:53

where we've taken away the garage that was crumbling.

0:53:530:53:56

It was in a very bad way.

0:53:560:53:58

We've created a patio area, made it nice and clean with new fences

0:53:580:54:01

and the new gate, so it's quite a nice, open area now.

0:54:010:54:05

It's time to find out what two local property experts think of the revamp.

0:54:060:54:11

The overall finish to the property is very good.

0:54:110:54:14

I think the owner has made some excellent choices.

0:54:140:54:17

He's considered the ceiling price of his location

0:54:170:54:20

and he's been mindful of that when looking at his budget

0:54:200:54:23

for refurbishments.

0:54:230:54:25

First impressions of the property are very good.

0:54:250:54:28

It's been finished to a much better standard

0:54:280:54:31

than normally properties are that are bought to be let out.

0:54:310:54:34

He's gone for a neutral scheme, all floor coverings are nice.

0:54:340:54:38

The bathroom and kitchen originally were nice.

0:54:380:54:41

They've been kept, so good overall.

0:54:410:54:44

Sounds like Adrian is making the right decisions for his business and clients,

0:54:440:54:49

as he knows the local area and rental markets.

0:54:490:54:52

He bought the house for £66,000

0:54:540:54:57

and spent £2,800 on the refurbishment,

0:54:570:55:00

bringing his clients' total investment to 68,800 quid.

0:55:000:55:05

If it were to be sold, what could it sell for?

0:55:050:55:09

In the present market, I'd expect the property to achieve

0:55:090:55:12

a resale value of between £80,000 and £85,000.

0:55:120:55:16

We'd look to market the property for around 89,950

0:55:160:55:20

and would hope to achieve an offer of £87,000.

0:55:200:55:24

That would give Adrian's client a profit of between

0:55:240:55:27

11,200 and £18,200, before tax and expenses.

0:55:270:55:33

Yes, we'll be very happy with those valuations.

0:55:330:55:36

We didn't buy to resell, it is for the buy-to-let market

0:55:360:55:39

but it's come in at just under 69,000

0:55:390:55:42

with the purchase price and refurbishment.

0:55:420:55:44

So, very happy with those valuations.

0:55:440:55:47

But Adrian is keeping this as a buy-to-let for his clients,

0:55:470:55:51

so what rental figures might it attract?

0:55:510:55:54

In the property's current condition,

0:55:540:55:56

we'd expect to achieve a rental figure of between

0:55:560:55:59

475 and £500 per calendar month.

0:55:590:56:02

The rental valuation of somewhere between 450 and 495 per calendar month

0:56:020:56:07

would most certainly be achievable.

0:56:070:56:09

I think those valuations are low, in my opinion.

0:56:090:56:12

We do have a tenant signed up and she's moving in next week

0:56:120:56:15

at a rental of 550 per month

0:56:150:56:17

which is returning 9.6% gross yield,

0:56:170:56:19

which, in today's market, is excellent.

0:56:190:56:21

We're very happy.

0:56:210:56:23

With seven years of property management behind him,

0:56:230:56:26

is Adrian feeling the urge to move on to pastures new?

0:56:260:56:30

The plan for the future is to carry on sourcing properties -

0:56:300:56:33

look for new clients and buy property and rent them out

0:56:330:56:36

and manage them on behalf of those clients.

0:56:360:56:39

Join us next time as we meet more brave buyers

0:56:410:56:44

who tried to make a killing on property

0:56:440:56:46

or just want to find somewhere to live.

0:56:460:56:48

Yes, join us then for more Homes Under The Hammer.

0:56:480:56:51

-See you.

-Goodbye.

0:56:510:56:52

Subtitles by Red Bee Media Ltd

0:57:120:57:15

Martin Roberts and Lucy Alexander visit a site in Ilkeston, Derbyshire, a property in Kent and another in a cul-de-sac in Warrington. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.