Episode 79 Homes Under the Hammer


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Episode 79

Martin Roberts and Lucy Alexander visit a two-bed bungalow in Wiltshire, a ground-floor flat in Balham, London, and a three-bed end of terrace in Yorkshire.


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Transcript


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-Welcome to Homes Under The Hammer.

-Property auctions used to be places

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where just developers and builders used to go, but not any more.

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All sorts of people go to auctions to find what they're looking for.

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Even in difficult times, they're still finding bargains under the hammer.

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Well, even for experienced auction buyers, you need to be sure what you're doing,

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cos auctions can be fairly nerve-racking places to be.

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So did today's buyers keep a cool head and keep it calm? Let's see what they bid for.

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'In Wiltshire, this two-bed bungalow has pipe work so bad,

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'it makes your eyes water.' I've never seen plumbing that is so absolutely diabolical as that.

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'This ground-floor flat in Balham, London, oozes period charm.'

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I was excited outside, but now I'm inside, it's even better!

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'And in this model village in Yorkshire, this three-bed end-of-terrace

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'is pretty much ready to wear.' It's already screaming out very practical family house.

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'All these properties have been sold at auction.

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'We'll find out who bought them and what they paid

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-'when they went under the hammer.'

-Well done. Thank you.

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'I'm in the market town of Corsham near the spa city of Bath.

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'It's a beautiful and historic place near some wonderful and interesting buildings.

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'Let's hope the property I'm here to see is, too.

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'One thing's for sure - it's certainly easy to get to by road.

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# Drive, yeah, drive

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# I'm gonna drive

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# But then you get nowhere

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# Baby, driving

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# Is bringing me down

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-Well, the property I'm here to see is a 1920s bungalow.

-CAR HORN BEEPS

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But you know what? The first thing that's wrong with it - it's right by the side of the main A4.

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That used to be the main London road going from Bath all the way to London, so clearly,

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people honking their horns, people thundering past at all hours of the day, it's not ideal.

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The property itself, though, it's not at all too bad.

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Two bedrooms. It's a bungalow. Oh, there goes another truck.

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Let's take a look inside.

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Despite the traffic, you know how I do love a bungalow,

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and this one had an auction guide price of £155,000.

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So one of the first things you're going to do, of course, is fit very good double glazing,

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although that won't get rid of the vibrations from the trucks.

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What have we got? Entrance hall here. Standard layout for a bungalow.

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Two reception rooms, although one will probably end up being a bedroom.

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A few signs of damp, you'll want to check that out. Bathroom and toilet there.

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Second bedroom there and then through to the rear sitting room area.

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Not a bad sized space. Lots of nice views out the windows and light coming in.

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-HE LAUGHS

-What on earth...is that?

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Look at this! Look at this plumbing!

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Fantastic!

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Erm, right, well, we're in the lounge here, and as you can see,

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somebody has done this magnificent job of this pipe work on the surface.

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Oh, and for good measure, we've got an electricity cable going through there.

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I've never seen plumbing that is so absolutely diabolical as that.

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Yeah, done by Bodgit and Scarper by appointment to the gullible.

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# Bonkers

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'It really is a bonkers job. And the creative plumbing doesn't stop there.'

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There are more classic chapters from the handbook of how not to do plumbing here in the bathroom.

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This is just an absolute star. You turn the tap on and the water goes into the sink,

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out of the waste pipe here, into the bath.

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It's not a normal way of doing it, but hey, it works.

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'Hm. Yes, and that's an interesting way to position the showerhead.

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'But shoddy plumbing aside, the rooms here are a good size and nice and bright.

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'Of course, the whole place needs modernising

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'and you could think about moving the front bedroom to the back to get away from the noisy traffic.'

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Right at the back of the property is the kitchen.

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Of course, the further away you come from the road, the quieter it becomes,

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so really, when we think about positioning the bedrooms, you want to bear that in mind.

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But the kitchen itself, it's not a bad size space. It could do with a bit of tender loving care, for sure.

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I think knock down that wall there to create an even bigger space.

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The good news, of course, is these lovely views out the window. You certainly can't knock that.

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It's a world away from the bustle out the front.

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A great sized garden with views over the fields into the distance.

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Ah, perfect for summer evenings.

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# Don't sit under the apple tree

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# With anyone else but me

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# Anyone else but me

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# Anyone else but me, no, no, no

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Well, at the rear of the property, there is the potential for an extension.

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The great news is, you've got planning permission already for a two-storey extension,

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a loft conversion and a double garage.

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That's good news. It would increase the floor area of this bungalow quite significantly.

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And good news again - it's at the rear of the property, further away from the road. Is it worth doing?

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You've got to look at the numbers, talk about what it would add to the value of the property

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and then make your decisions. Cos you want to make sure it's worth the fruits of your labours.

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# Don't sit under the apple tree

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# With anyone else but me

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# Till I come marching home

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'We invited a local estate agent along to find out his thoughts on the bungalow,

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'guided at auction at £155,000.'

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It's a nice property. It offers good potential.

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The main road is obviously an issue regarding the property,

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but it certainly could offer someone a good bit of living.

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'Does he think extending at the back would be worthwhile?'

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I would certainly recommend carrying out the extension.

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Looking at the resale values, it would be the better option.

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'What kind of resale value could it achieve if the extension was built?'

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If the planning permission was carried out and the extension was put on the property,

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I'd probably look to market it somewhere in the region of £275,000 to £300,000.

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'If the property was sold on with just the renovation work, how much could it get?'

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If the property was renovated in its current state without the extension,

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I'd look to put it on the market in the region of £200,000 to £210,000.

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'Perhaps rental would be worth considering.'

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In terms of rental values, if the property was renovated but without doing the extension,

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it would be worth in the region of £700 per calendar month.

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Well, on the down side, the road and the plumbing.

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Blimey! But on the plus side, what you've got here is a property that you could do quite a lot with,

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especially with the planning permission that's in place.

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

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Lot 30. Where will you start me? 150, somebody? 150, OK.

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At 150. We'll go in fives to start with. 155.

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160. At 160.

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Now go in twos. 162. 164.

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166. 168.

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170 I'll take. At 168,000. It's here to be sold.

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At £168,000. 170, please, anyone?

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170 I've got. At 171.

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172 to you, sir. 172.

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And 3 may I say? At 172.

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There at £172,000 for the first time.

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£172,000 for the second time.

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-At 172, third and last time, are you done?

-HAMMER BANGS

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'And that successful bid of £172,000 came from Roger.

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'He lives locally and is a builder and landscape gardener.

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'So when it comes to renovating this property, he's got a head start.

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'I caught up with him at his new bungalow to find out his plans.'

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-Roger, congratulations.

-Thanks.

-Nice to meet you. Why did you want to buy the bungalow?

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Basically, I've had a dream of building my own place for a long time.

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This came up for auction and, er,

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well, it's difficult to find a plot, so this is a bit of a compromise, really, cos of the main road.

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But we've got the view out here, so this is why I went for it.

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'Roger's not yet sure whether he'll extend the house or apply to amend the planning permission,

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'knock it down and start again.

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'Whatever he does, he's optimistic about coping with the noisy road out front.'

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Hopefully, all that stuff is going on during the day, so hopefully in the evenings

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when we're spending most time here, and weekends, that garage won't be so much of a problem.

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I'm envisaging, once the house is built, high-roof level garage across there,

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that'll cut out of a lot of the noise at the back.

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-So you've bought it why?

-I basically want to get rid of my mortgage,

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so we sold our old property, we're living in rented accommodation,

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and hopefully with the money we spent on this

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and what I've got left in the bank, we should be mortgage free at the end of it.

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-Oh, great! So this will then be, what, your family home?

-This will be the family home, yes. We'll move in.

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-Tell me about the family.

-Er, my wife, Susan, and two teenage daughters.

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-Avril and Jessica. They've just taken their GCSEs.

-Oh, wow.

-Yeah.

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They're not too happy about being moved away from where they are at the moment,

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but they'll be driving soon, so they'll be able to get back to see their friends.

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'He wants to turn this property around within a year on a budget of around 100 grand.

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'If he can't get permission to knock it down and rebuild,

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'he hopes to amend the existing extension plans to create a fourth bedroom above the new garage.'

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# If I had your love

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'Everything depends on planning permission. But one way or another,

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'he'll turn this rather needy two-bedroom bungalow into a loved-up four-bedroom family home.'

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# A dream house

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# Just for you

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And once you've spent 12 months doing this up,

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is this it then, or would you sell it on? What's the game plan for the future?

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Well, we're going to move in.

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My two daughters are 16 at the moment.

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Maybe in two or three years' time, they'll be off to university,

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they'll have left home, so we'll then reassess the situation, see if we want to downsize

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and then move on somewhere else, try and find somewhere we really like then.

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-Are you looking forward to it?

-Oh, yeah, very much so. Yeah.

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I can't wait to get started, really.

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Good. We wish you all the best with it.

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-Good luck and we look forward to seeing how you get on.

-All right.

-All the best.

-Cheers, then. Thanks.

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So, Roger fulfilling his dream of building his own house on this site.

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Well, I just hope that his family like it when it's done,

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that he manages to get the planning permission and that he sticks to his budget.

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It's going to be tight. You can find out how he gets on later in the show.

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'Balham, London, for so long, the poor relation to Clapham,

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'is now more than standing on its own two feet in desirability stakes.

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'Its London village feel is what attracted wealthy city workers to the area

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'way back in Victorian times, and after a slight dip in popularity,

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'today it's stacked with bars, bistros and fabulous houses.

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'It's safe to say, Balham is back and how!'

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The property I'm here to see is along this line of beautiful, quirky Edwardian terraces.

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And on top of that, you've got this lovely separation from what can be a pretty busy road out there.

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But it's all looking good. And the guide price, well, that looks astounding.

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It's a ground floor of this mid-terrace, all for £190,000.

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Now, I know that's a lot of money in anybody's books, but when you hear the flat above sold a few years ago

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for £423,000,

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to me, that sounds like a bargain.

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'But that was at the height of the property boom and times have really changed.

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'Still, it's less than half of the price of the top-floor unit

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'and it's got the freehold thrown in, as well.

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'Time to see if this ground-floor, two-bed flat matches up to my expectations.'

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Well, you've got a lovely front door there.

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And, ooh, look how exciting it's going to be! Cornicing in the hallway!

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It's already getting good! You can obviously see beyond the decor.

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It's completely dated. But it's fantastic, I love it. Wonderful proportions.

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A really lovely sized lounge in there.

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A fireplace that's not in keeping with the property, so I think I'd like to change that.

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But beautiful square rooms. You've got your second room here. I think this probably once was a bedroom.

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Again, cornicing. A beautiful fire surround here.

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You could possibly get something and install it in there, cos you never know what you'll find behind here.

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You've got a lovely big window with views out onto a decked area.

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I tell you what, I was excited outside, but now I'm inside, it's even better!

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# Better things will surely come my way

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'Two rooms down and so far, so good. This flat needs tons of work,

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'but the bones are here, and it has period features that are very much in fashion at the moment.

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'Moving further down the hall towards the back of the flat, and the bathroom's a tad small.

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'It would need ripping out, although I reckon a reclamation yard would be interested in some of the fittings.

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'But just as it's going swimmingly...

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'..this is the second bedroom. Talk about bijou!'

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That little bedroom there is too, too small.

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You really need to do something about that.

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You can see here, we're at the back of the property, we've got two really nice windows

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leading out to a little decked area, and you've got the kitchen over there.

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Now, my idea is, to really make the most of this property,

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I think you've got to tweak the internal layout,

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maybe more than tweak, because I'm thinking this wall has got to come down.

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I think it's a load-bearing wall, so you may need to get into all sorts of complications, RSJs, et cetera.

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But by taking that out, you could really, really open this space up.

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So you could call this your sort of living/dining area, it comes straight off the kitchen.

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Then you would have a nice, big space to the back.

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You could incorporate lots of this hallway which, at the moment, is wasted space.

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Now, that would allow the front beautiful reception room to be turned into a bedroom.

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As much as I hate to do that, I think it would work,

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because then you would have two good size doubles in this flat

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and I really think, for the sort of money you're paying for a property like this,

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you need to give two double bedrooms, because if you don't do it,

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somebody else is going to come along, do exactly that, and get the money for it.

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'This is a very modern way to make the most of an old-fashioned layout.

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'But before we get all involved with rearranging the inside,

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'we need to check out the bizarre layout outside.'

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Because this isn't just your garden.

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Well, this bit is, this bit isn't, and that bit is. It's a nightmare!

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The problem is, the top floor flat gains access from this door here,

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right in the middle of the garden. You could split this garden here,

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so this part belongs to upstairs, but then they'd be peering through these windows while you're eating

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or getting changed. It's not going to work.

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You are left with two fragments of the garden on opposite sides of the flat.

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There is no easy way around this one,

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and whoever takes this flat on needs to get friendly with upstairs

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and find a solution that's fair and feasible.

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Because at the moment, it's flipping annoying!

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'I'd think of talking to upstairs about buying their patch. If they're not keen,

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'you'll just have to put up with a garden of two halves.

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'At least you could follow the sun throughout the day.

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'We asked a local estate agent for her thoughts on the flat.'

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The space is very good. I think it would work better if it was reconfigured.

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I think it would make it far more saleable and rentable

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if you had two big doubles bedrooms.

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'What about a resale value?'

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If it's reconfigured, then £375,000, £380,000.

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-'And for rental?'

-If you have the two double bedrooms, then easily £1,400 a month.

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I can only assume the guide price was set so low

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to tempt the wary into the auction room.

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This is a cracker of a flat, but in need of some work

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and it's begging for walls to be moved and the whole space improved.

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I can't wait to see who bought this at the auction.

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Right, lot 55.

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Who's here for this? I've got a dead low reserve on this.

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Phone bid, 200. Who wants to go a bit more than that?

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How much?

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I've got 220 in the room. 225?

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If not, it's going at 220, if no-one else has bid.

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First time. 225.

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If you don't get your hands up, you're going to lose it. 225. 230.

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'Prime property like this was never going to go for £225,000.

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'So bidding quickly escalated. We rejoin it at £307,000.'

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307 with you. 308?

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If not, 307.

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308. 309.

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309. 310?

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311? 312?

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Anyone else? 311, first time. Second time.

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-Third and last time, if you're all done.

-HAMMER BANGS

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Sold, 311. Well done. It's a good buy, that.

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'The successful bidder was property investor Claude, who bought the flat for £311,000,

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'121 grand over the guide price.'

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Claude, congratulations. That was quite an interesting auction, wasn't it?

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You actually sat back a few times and didn't continue to bid.

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I did. That was part of the policy of trying to buy at auction.

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People never know how much you're going to bid and where you're going to stop.

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So to stop anybody trying to bid you up,

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I sometimes do stop and say, "No, that's enough" and see if anybody else wants to carry on.

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-Ooh, so you were playing a few mind games, were you?

-There's always mind games in the auctions.

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-What do you do?

-Well, I'm principally a property investor.

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I normally buy properties, refurbish them and then let them out.

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-Is this something that you've enjoyed doing over the years?

-Oh, it's terribly rewarding.

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At the end of each day or each year, you can reflect on what you've achieved

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-rather than shuffling paper around.

-So did you used to shuffle paper around?

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Oh, I've done a few things in my life. But yes, I did, I'm an accountant by training.

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And I can imagine from being an accountant that you're meticulous with everything.

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-I bet nothing goes unmissed.

-I'm pretty good at keeping the records, yes.

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But don't ask what the budget is. I work to a quality standard, not a budget.

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'I'll come back to you on that one, Claude. Bet I can get a budget out of you.

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'He has a portfolio of around 25 properties.

0:20:270:20:31

'This one is really to keep him out of mischief while planning his next renovation.

0:20:310:20:35

'He's not convinced there'll be a lot of profit here

0:20:350:20:38

'and he's probably right given the amount of work.'

0:20:380:20:41

I'm going to gut the whole thing. All the ceilings will come down,

0:20:410:20:44

plaster will come off most of the walls. I shall then be able to tell

0:20:440:20:48

when I've got all the ceilings down how the construction is

0:20:480:20:51

and that will determine whether I'm able to do what I'd like to do,

0:20:510:20:54

which is to knock between the dining area and the second bedroom and open that all up,

0:20:540:21:01

including into the kitchen. At the moment, you've got the kitchen at one end of the flat

0:21:010:21:07

and then reception room at the other end, and that doesn't really work for modern living.

0:21:070:21:12

But if it's going to be difficult for technical reasons,

0:21:120:21:16

then that will be the reason why I don't do it.

0:21:160:21:18

You must have an idea of how much you want to spend on this.

0:21:180:21:22

I've got a ballpark figure. I reckon it's going to cost £40,000 to do it.

0:21:220:21:26

'See? I knew I'd get it out of him.

0:21:260:21:29

'By the time you add up the figures, including over £9,000 in stamp duty,

0:21:290:21:34

'and any other fees or expenses,

0:21:340:21:36

'his profit margin could start to shrink to around £10,000 to £20,000.

0:21:360:21:41

'Claude won't get sentimental about this place and hopes it'll be done and dusted in around four months.

0:21:410:21:47

'But hang on. What's he going to do about the garden?'

0:21:470:21:50

I'm fortunate in that I'm the freeholder of the whole block

0:21:520:21:55

and the upstairs flat is a leaseholder.

0:21:550:21:58

But they're deemed within their lease to have exclusive use of a portion of the garden at the back

0:21:580:22:06

where they've got a table and chairs.

0:22:060:22:08

So can you not swap the parcels of land around

0:22:080:22:12

and say, "There's my back door, I'll have that chunk and upstairs can have that chunk"?

0:22:120:22:17

I think because of where their back door is, it's going to be a bit complicated to do that

0:22:170:22:22

and it just all ends up being more money for the lawyers, frankly.

0:22:220:22:27

I don't honestly think there's a lot one can do

0:22:270:22:30

and I don't think it's going to make a great deal of difference.

0:22:300:22:33

Are you quite excited about turning this place around?

0:22:330:22:36

Yes, I think it's going to be very rewarding. The worse it looks when you buy it,

0:22:360:22:40

the more rewarding it is at the end of the day.

0:22:400:22:43

It also makes it an awful lot easier when you just give the instruction to rip everything out.

0:22:430:22:48

Because when it's in halfway decent order,

0:22:480:22:50

you feel, "Ooh, what have I spent all this money on?"

0:22:500:22:56

-Claude, it's been lovely meet you. Good luck and I hope the refurb goes really well.

-Thank you.

0:22:560:23:02

So, it's the condition of the flat itself that will make up Claude's mind

0:23:020:23:07

about what to do with the layout.

0:23:070:23:09

And I am now completely torn!

0:23:090:23:13

You could lose this lovely living room or make a marvellous open-plan area at the back.

0:23:130:23:18

It's going to be a very interesting one. Find out what happens later in the programme.

0:23:180:23:23

'Coming up in South Yorkshire, the icing on the cake for this end terrace is the garden.'

0:23:240:23:29

A real bonus to what is already a really nice little house.

0:23:290:23:33

'Claude's renovation in Balham, London, turned out to be a real can of worms.'

0:23:340:23:38

Every risk I took went bad.

0:23:380:23:41

It was far worse than I ever imagined.

0:23:410:23:43

'But first, in Wiltshire, Roger is dreaming of living the good life.'

0:23:450:23:49

We're going to have ducks and chickens, so it's going to be a nice space.

0:23:490:23:53

'Time now to head back to Corsham where earlier we met Roger.

0:23:570:24:01

'He purchased this two-bedroom bungalow at auction for £172,000.

0:24:010:24:06

'It was a bit noisy as it was close to the main road, but that didn't stop Roger.

0:24:070:24:12

'He lives locally and is a builder and landscape gardener by trade,

0:24:120:24:16

'so definitely the right man for the job. But why did he buy this place?'

0:24:160:24:20

I've had a dream of building my own place for a long time.

0:24:220:24:26

This came up for auction and, well, it's difficult to find a plot

0:24:260:24:31

so this is a bit of a compromise, really, because of the main road.

0:24:310:24:35

But we've got the view out here, so this is what I want it for.

0:24:350:24:40

'Roger wanted to turn this property round within a year and on a budget of around 100 grand.

0:24:410:24:46

'If he couldn't get planning permission to knock down and rebuild,

0:24:460:24:50

'he hoped to amend the existing extension plans to create a fourth bedroom above the new garage.

0:24:500:24:55

'So, nearly 11 months later, has Roger managed to fix up this tired and rather quirky two-bed bungalow

0:24:550:25:02

'and turn it into a four-bedroom family home?'

0:25:020:25:06

# And I will try to fix you

0:25:060:25:11

'Roger's kept some of the existing building,

0:25:140:25:17

'but already from the front, you can see it's much bigger. What's it like inside?

0:25:170:25:24

'What a difference.

0:25:280:25:30

'Compared to before, the new open-plan kitchen, dining and living room looks vast!

0:25:300:25:36

'It looks more like a complete rebuild,

0:25:380:25:40

'as Roger's ended up knocking down most of the original building.'

0:25:400:25:44

This is the new extension.

0:25:510:25:54

This is a kitchen/diner.

0:25:540:25:57

We'll have a sofa over here,

0:25:570:26:01

table and dining chairs where you're standing,

0:26:010:26:03

and over here is the kitchen. I think we'll probably be spending most of our time in here.

0:26:030:26:09

It's a nice room. It's got a nice view over here.

0:26:090:26:13

I'm very pleased with how this room's turned out.

0:26:130:26:16

'Roger has clearly been very busy. Double-storey extension at the rear, double garage, new roof,

0:26:170:26:23

'new windows, oh, and not forgetting that disastrous plumbing.

0:26:230:26:28

'Glad to see that's been sorted.

0:26:280:26:31

'Roger really is a master builder.'

0:26:310:26:34

# So, friends, do you know

0:26:340:26:37

# The master builder?

0:26:370:26:40

This is the master bedroom. We've got an en suite here.

0:26:400:26:44

A dressing room over there. Quite big. Get a dressing table in there.

0:26:440:26:50

Then we've got double doors, Juliet balcony looking out over this view.

0:26:500:26:55

Erm, it's very nice.

0:26:550:26:58

'The garden looks great, but it seems a little bigger than I remember.'

0:27:010:27:05

We bought a bit of land at the back.

0:27:060:27:09

It's made the garden twice as big as it would've been if we hadn't bought the land.

0:27:090:27:14

We've planted wild flowers on one side of it, we'll have ducks and chickens there.

0:27:140:27:18

So it's going to be a nice space. And, of course, it extends into the field, as well.

0:27:180:27:24

'A huge amount of work has gone on here,

0:27:240:27:26

'but there's still quite a lot left to do.'

0:27:260:27:29

Upstairs, it's mainly decoration. There's the family bathroom to be tiled

0:27:290:27:35

and the en suite to be done.

0:27:350:27:38

After that, it's mostly painting.

0:27:380:27:41

And then downstairs, a bit more plastering to do,

0:27:410:27:44

the utility room to sort out and, obviously, the kitchen to be fitted.

0:27:440:27:49

On the original planning permission, there was just an empty roof space above the garage,

0:27:490:27:54

so we applied to put a bedroom over the top,

0:27:540:27:57

which meant raising the roof line by about two foot.

0:27:570:28:01

That went through OK, actually. We got permission to put the bedroom in,

0:28:010:28:05

which has turned out to be one of the best bedrooms in the house, really.

0:28:050:28:09

'Roger's daughters weren't so keen on the move before.

0:28:090:28:12

'Have they changed their minds now it's nearly finished?'

0:28:120:28:15

Yeah, they're coming round to the idea of living here. They like the rooms that they've got,

0:28:150:28:20

they like the space, the big garden. I think they're looking forward to having lots of parties here.

0:28:200:28:26

'11 months have passed. Will Roger manage to finish within the year, as planned?'

0:28:260:28:32

Well, we are going to move in in about a month.

0:28:320:28:34

I mean, it doesn't look like it's ready, but we are going to get enough ready for us to move in.

0:28:340:28:40

We'll have a kitchen ready, get one of the bathrooms ready.

0:28:400:28:43

The bedrooms only need decoration and the rest of it I'll do when we've moved in.

0:28:430:28:49

'What about the budget? Did Roger stick to £100,000?'

0:28:490:28:54

We have gone over budget. We've upgraded various things and, of course, buying the land at the back

0:28:540:29:01

cost more than we were planning to do.

0:29:010:29:05

So I think, on the build itself, we've gone about £30,000 over budget.

0:29:050:29:10

'Roger's spend of 130 grand means he's not quite mortgage-free, as he'd hoped,

0:29:100:29:16

'but he is now borrowing less than before.'

0:29:160:29:19

'Including his purchase price of £172,000,

0:29:200:29:23

'Roger's outlay to date is £302,000.

0:29:230:29:27

'But he reckons there could be another £30,000 of work still to be done,

0:29:270:29:30

'including fittings and furnishings.

0:29:300:29:33

'Let's see what two local estate agents think of his work.'

0:29:330:29:37

It's different from what I expected. He's changed the plans

0:29:390:29:42

from the original plans that he had in place,

0:29:420:29:45

but he's done a nice job. He's got all bedrooms upstairs

0:29:450:29:47

-and there's some really good size accommodation.

-He's transformed it

0:29:470:29:51

from what it was, as a small detached bungalow,

0:29:510:29:54

into what is now a sizeable family house.

0:29:540:29:56

'What rental income could this place achieve?'

0:29:560:30:00

It's at the top end of the market, so in the region of £1,250 per calendar month.

0:30:000:30:05

We should achieve in the region of £1,200 per calendar month without too much difficulty, maybe £1,250.

0:30:050:30:10

Well, that sounds like a good income, actually.

0:30:100:30:14

If we were going to rent it, I think I'd be happy with that.

0:30:140:30:17

'And resale value?'

0:30:170:30:20

I would recommend a guide price in the region of £375,000 for the property.

0:30:200:30:25

I would recommend an asking price in the region of £350,000 to £375,000.

0:30:250:30:29

Well, my total spend at the end of it is going to be 330,

0:30:290:30:33

so we have made a profit on it.

0:30:330:30:36

Probably would've liked a little bit more,

0:30:360:30:39

but house prices as they are at the moment, probably that's not bad.

0:30:390:30:42

'That would be a potential pre-tax profit of between £20,000 and £45,000

0:30:430:30:49

'minus the usual taxes and expenses.

0:30:490:30:52

'Does Roger think his family will be happy living here?'

0:30:520:30:55

Yeah, I think they're going to enjoy it here eventually.

0:30:550:30:59

It's got plenty of space, plenty of light, we've got a big garden,

0:30:590:31:03

so, yeah, I think we're going to settle in here quite nicely.

0:31:030:31:07

'Doncaster, or Donny to those in the know, was once a coal-mining centre and industrial powerhouse.

0:31:110:31:17

'More recently, Donny has been playing the regeneration game and winning,

0:31:170:31:22

'with a new riverside college campus and plans to build lots of new homes.'

0:31:220:31:28

Well, the property I'm here to see is in Woodlands.

0:31:280:31:31

That's a model village about three miles north of Doncaster centre.

0:31:310:31:37

Well, when I say model village, I don't mean small houses and train sets and windmills,

0:31:370:31:43

I actually mean it was built in the early 20th century

0:31:430:31:47

to house the workers of the local colliery.

0:31:470:31:50

And what a great space it is, built around this large area of grassland and trees.

0:31:500:31:56

The houses themselves, really pretty, on the edge, lots of open countryside.

0:31:560:32:00

This is the one I'm here to see, right on the end. It had a guide price of 50,000 to 60,000 quid,

0:32:000:32:04

which for a three-bed sounds good, especially in this kind of place.

0:32:040:32:09

'At a time when most coal miners' houses were traditional terraces,

0:32:090:32:14

'this former coal miners' estate is charming.

0:32:140:32:16

'Backing onto woodland and with a large garden at the rear, it's impressive now.

0:32:160:32:21

'In the 1900s, this place must have felt like paradise.'

0:32:210:32:25

# Oh, think twice

0:32:250:32:29

# It's just another day for you

0:32:290:32:33

# You and me in paradise

0:32:330:32:36

So what have we got? A little porch area there and then into your front living room.

0:32:380:32:43

Now, bit unusual, this, because it's separated this way

0:32:430:32:47

as opposed to this way, that you might expect and is more normal.

0:32:470:32:51

But I quite like that, because you get a double aspect,

0:32:510:32:54

you get a view over the green that way and out that way, more light coming in, which is really good.

0:32:540:32:59

The only thing is, they've put these very dark cabinets in and bookshelves,

0:32:590:33:03

which don't really help to lift the light in the room.

0:33:030:33:06

But the old quarry tile floor and it's a good size space, so all in all, a bit of a tick for that.

0:33:060:33:11

And then through into your kitchen. Bit of a surprise here.

0:33:110:33:15

Not bad condition. It needs some units, a cooker, et cetera,

0:33:150:33:18

but I think a bit of cleaning up in here and you could actually make it quite presentable.

0:33:180:33:23

Deal with the walls somehow. A bit of a wedding cake scenario going on there.

0:33:230:33:27

But more practicality as you come through the kitchen. At the back, you've got a downstairs loo

0:33:270:33:32

and a utility room. So all in all, it's already screaming out very practical family house.

0:33:320:33:38

# It runs in the family

0:33:380:33:42

# All the things we are

0:33:420:33:44

'Up the slightly oddly-positioned stairs and there are three double bedrooms suitable for Goldilocks.

0:33:440:33:50

'One a tad small, one just right and the other almost too big.

0:33:500:33:55

'But I have a cunning plan. You can only get to the bathroom via this large bedroom.

0:33:550:34:00

'I'd suggest creating a corridor, allowing the bathroom to be more accessible.

0:34:000:34:05

'The cherry on the cake is the loft. It's currently used as an additional bedroom

0:34:050:34:10

'but couldn't be marketed as such unless proper stairs were put in.

0:34:100:34:14

'And that would put a big dent in your budget.'

0:34:140:34:18

Well, at the rear of the property, you've got this little bit of garden and this access road,

0:34:180:34:22

which is actually quite convenient because, good news, this is your garage.

0:34:220:34:28

It's a double garage. And also you've got this little storage area there.

0:34:280:34:32

So, pretty good. But that's not all. Follow me. This is fantastic!

0:34:320:34:37

This is almost like a hidden garden. It's clearly not directly attached to the property,

0:34:370:34:42

but you come down this, heading towards all this woodland in the background,

0:34:420:34:46

and you've got this lovely, lovely area of, well, garden space, whatever you wanted it to be.

0:34:460:34:52

A real bonus to what is already a really nice little house.

0:34:520:34:56

'This house is full of surprises, but none so big as the one lurking in the legal pack.'

0:34:570:35:03

Now, the legal pack states that the property was bought around three months ago

0:35:050:35:11

by somebody who's decided to sell it on. Anything to worry about with that?

0:35:110:35:15

Well, actually, yes, there is, because mortgage companies do not like properties

0:35:150:35:20

that have been owned by somebody for less than six months.

0:35:200:35:23

It's to stop unscrupulous investors basically buying property

0:35:230:35:26

and then flipping it on at an inflated profit.

0:35:260:35:29

So what we learn from that is that the person who bought it probably had to have cash to do so,

0:35:290:35:34

and if you weren't prepared for it, you could score yourself a bit of an own goal.

0:35:340:35:39

'Despite that rather sticky stipulation, the house has a lot going for it,

0:35:390:35:45

'especially for its £50,000 to £60,000 guide price.

0:35:450:35:50

'We invited a local estate agent to give us his thoughts.'

0:35:500:35:54

The first impressions are it's a good purchase.

0:35:560:35:59

It's got lots of potential. It's not a bad basic shell.

0:35:590:36:03

It just needs modernisation.

0:36:030:36:05

'Is the resale market a good option for this property once renovated?'

0:36:060:36:11

If the property is done up properly, then I would put it on the market for around the £90,000 mark.

0:36:110:36:17

'What about the rental returns?'

0:36:170:36:20

Per calendar month, the rent I would expect would be £400 to £425.

0:36:200:36:25

So, a model house in a model village?

0:36:260:36:30

Well, almost. Not really that much work to do

0:36:300:36:33

to turn this into a lovely family home.

0:36:330:36:36

And you certainly can't complain about the setting.

0:36:360:36:39

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

0:36:390:36:42

Guided at 50,000 to 60,000. Where are you going to be for this one?

0:36:460:36:49

£40,000 the bid. Start at 40,000.

0:36:490:36:52

42. 44. 46. 48. 50,000.

0:36:520:36:57

At 51. I have 51. 52.

0:36:570:37:00

53. 54. 55 for you?

0:37:000:37:03

New bidder, 55,000. 56.

0:37:030:37:05

57. 58.

0:37:050:37:07

59,000. 60 for you?

0:37:070:37:09

£60,000 I'm bid. 61,000 there.

0:37:090:37:13

And 62 if you're going. 63.

0:37:130:37:16

64. 65. 66.

0:37:160:37:21

67. 68.

0:37:210:37:23

69 for you? 500 if you like.

0:37:230:37:26

Is it 500?

0:37:260:37:28

At £68,000.

0:37:280:37:31

For the first time. Second. Third and last time at £68,000.

0:37:310:37:34

-Any more bids?

-HAMMER BANGS

-Well done. Thank you.

0:37:340:37:37

# Young girl

0:37:380:37:42

# Get out of my mind

0:37:420:37:45

'Successful with her £68,000 bid was 26-year-old Hannah.

0:37:450:37:50

'She may seem relatively young to be bidding at the auction, but appearances can be deceptive.

0:37:500:37:56

'She's a seasoned property developer who knows how to spot a diamond in the rough.'

0:37:560:38:00

Hannah, lovely to meet you. Congratulations. Tell me why you wanted to buy this place?

0:38:000:38:05

-Well, I know quite a bit about the area. I've already got two properties within the same square.

-Oh, right.

0:38:050:38:12

They rent out really well. They're nice people in the area

0:38:120:38:15

and the houses themselves dress up really nice.

0:38:150:38:18

It's a lovely little spot, actually. It's almost hidden away there. It's this oasis of, well, loveliness.

0:38:180:38:24

-Yep.

-Right. So tell me a bit more about you.

-Well, I'm a full-time property developer.

0:38:240:38:28

I started when I was 18, bought my first property,

0:38:280:38:31

and then just did one at a time as I was working full-time, as well.

0:38:310:38:37

I did a degree in theatre, film and television.

0:38:370:38:41

-Wow!

-About halfway through, decided it was property I wanted to get into.

0:38:410:38:47

-I got the bug.

-Right.

-And then... So I was working... When I came out of university

0:38:470:38:52

I started working as an estate agent to get a bit of background knowledge.

0:38:520:38:56

When I left the estate agency, bought a property with a view to doing it up and selling it.

0:38:560:39:01

Erm, which I did. And it worked quite well, so...

0:39:010:39:05

'It certainly has worked well because Hannah now owns nine properties.

0:39:070:39:11

'And with successful property developing parents

0:39:110:39:14

'to set her off on the right track from a young age, she's had great mentors.

0:39:140:39:19

'At the same time, Hannah did fall foul of that issue that was hidden in the legal pack.'

0:39:190:39:24

I had a bit of a problem with this property because I wasn't aware that the majority of mortgage lenders

0:39:240:39:29

won't lend on a property that's only been owned by the previous owner

0:39:290:39:34

for less than six months.

0:39:340:39:37

-So what did they say?

-No. I had the finance in place before I went to the auction. No problem.

0:39:370:39:44

Paid the ten percent deposit on the day and signed the contract

0:39:440:39:47

to complete within 28 days, which is not normally a problem.

0:39:470:39:53

I then went back to my mortgage broker, and he tried finding different lenders,

0:39:530:39:58

just none of them would even look at it.

0:39:580:40:01

But because I'd signed the contract to exchange within 28 days,

0:40:010:40:04

erm, there was no way round it. They wouldn't extend their completion date.

0:40:040:40:09

Erm, and the financial implications of not completing

0:40:090:40:13

on the date that you've signed the contract for is insane. Quite frightening, really.

0:40:130:40:20

# You make me scared.

0:40:200:40:23

-# That's what you do

-'It's a scary situation to face.

0:40:240:40:27

'If Hannah had failed to complete, she would have forfeited her £6,800 deposit,

0:40:270:40:33

'incurred costs and would have been made to make up the difference if the house then sold for less.

0:40:330:40:38

'Fortunately she was able to secure short-term finance from a private investor,

0:40:420:40:47

'at a cost of £5,000. And that's eaten into her original 12 grand budget for the work.'

0:40:470:40:53

'But with £7,000 to play with, Hannah's got plans.'

0:40:540:40:59

-So what are you going to do to it?

-Well, just tidy it up, really.

0:40:590:41:02

There isn't a great deal that needs doing to it.

0:41:020:41:05

I want to plaster, get rid of all the Artex. New carpets. Lick of paint throughout.

0:41:050:41:10

The tiles, I'm not keen on the tiles, so I'll make them a bit more neutral.

0:41:100:41:15

-And how quick to get it sorted out?

-Hopefully just a couple of months.

0:41:150:41:20

-And then rent it out or sell it?

-Hopefully rent it. That's the plan.

0:41:200:41:24

-What kind of rent are you expecting?

-I know I can rent the properties out for £575,

0:41:240:41:28

but most estate agents would say less,

0:41:280:41:31

but because of the condition of the properties when they're being rented out,

0:41:310:41:35

people are happy to pay a bit more for a better quality property.

0:41:350:41:39

Well, it's lovely to meet you. Congratulations. And we can't wait to see how you get on.

0:41:390:41:43

-Thank you.

-Take care.

-Thanks.

0:41:430:41:45

Well, it just goes to show that success doesn't always come with age.

0:41:450:41:50

Hannah's worked really hard and put lots of enthusiasm into developing that property portfolio.

0:41:500:41:56

But it also goes to show that even with experience you can get caught out.

0:41:560:42:00

That mortgage issue was a really nasty one and a lesson to us all.

0:42:000:42:04

Still, how is she going to get on sorting this place out? You can find out later in the show.

0:42:040:42:10

Once you've bought the property, the hard work really starts

0:42:130:42:16

and you need to be prepared for a few surprises along the way.

0:42:160:42:19

So has it all gone smoothly for our buyers?

0:42:190:42:22

Or have they unearthed all sorts of problems? Time to find out.

0:42:220:42:26

'Back now to Balham in South London to catch up with veteran property developer Claude.

0:42:280:42:33

'He purchased the ground-floor flat of this attractive mid-terrace

0:42:330:42:37

'for £311,000 at auction, and hoped to reap the benefits.'

0:42:370:42:42

-Are you excited about turning this place around?

-Yes. I think it's going to be very rewarding.

0:42:450:42:49

The worse it looks when you buy a property, the more rewarding it is at the end of the day.

0:42:490:42:54

'Famous last words or voice of experience?

0:42:540:42:57

'Claude planned to turn this place around for £40,000, in three to four months.

0:42:570:43:02

'Seven and a half months later, we're back.

0:43:020:43:06

'The flat looks absolutely stunning, clean and contemporary.

0:43:210:43:26

'And with the small second bedroom now the kitchen,

0:43:260:43:29

'the back of the property is now an open-plan kitchen, dining and living area.'

0:43:290:43:34

Well, here, what we've done is we've removed the wall here, which was the second bedroom,

0:43:360:43:42

and converted this into a kitchen area, and opened it all up into this reception room,

0:43:420:43:48

so you've got a kitchen leading into a reception room which works so much better today in modern life.

0:43:480:43:55

And has the benefit of the French doors looking straight out onto the garden.

0:43:550:43:58

It is a slightly small reception room relative to the size of the bedrooms.

0:43:580:44:03

But that was a compromise I had to live with.

0:44:030:44:05

'Speaking of the bedrooms, the former master bedroom has had a complete makeover.

0:44:050:44:10

'And what was once the damp and dingy lounge at the front of the building,

0:44:100:44:14

'is now the new master bedroom.

0:44:140:44:17

'The back garden has been beautifully landscaped.

0:44:190:44:23

'It's still divided between upper and ground-floor flats, as before,

0:44:230:44:27

'but the ground floor access through the new French windows is a real bonus.

0:44:270:44:31

'Claude also made the most of the outside space at the front of the flat by creating off-street parking.

0:44:330:44:39

'I think this will be a huge selling point.

0:44:390:44:42

'The bright idea was inspired by solving one of many issues this property had in store.'

0:44:420:44:47

I had a major problem with the water mains.

0:44:470:44:50

We had to completely replace that so I had to dig the front garden up.

0:44:500:44:54

And I thought, "Well, if I'm going to spend money ripping up this grass and putting a trench in,

0:44:540:44:59

"why not convert it into off-street parking, because that's a real boon round here?"

0:44:590:45:05

And I consulted the council, got consent, and they'll be dropping the kerb in the next month or two.

0:45:050:45:11

So I created an off-street parking area.

0:45:110:45:14

'And a fabulous and practical creation it is, too. But not everything went as smoothly.

0:45:140:45:19

'Unfortunately, Claude was plagued with problems throughout the renovation.'

0:45:190:45:24

When I first bought it, I knew that it was in bad condition.

0:45:240:45:28

That was a given. And I took a few risks, but I have to confess, every risk I took went bad.

0:45:280:45:34

It was far worse than I ever imagined.

0:45:340:45:37

There was wet rot, dry rot,

0:45:370:45:40

penetrating damp, rising damp, even rats under the floor.

0:45:400:45:45

It became totally apparent that the floor had to go,

0:45:450:45:48

because everything, all the timbers were rotten underneath, particularly where they met the outside.

0:45:480:45:53

Virtually all the internal walls had to be completely rebuilt.

0:45:530:45:58

'Removing floors and walls is a challenge at the best of times.

0:45:580:46:02

'When buying a ground-floor property you need to be sure the flats above are not affected.'

0:46:020:46:07

There was one point when you could literally stand at the front door

0:46:070:46:11

and look right the way through to the back of the property, as every single wall had been removed,

0:46:110:46:16

and we had a forest of acrows, which are these props that prop up all the floors above.

0:46:160:46:21

'Of course, knocking things down had a knock-on effect on the budget.'

0:46:210:46:25

Well, they say in the military, the first casualty of war is the plan.

0:46:250:46:29

And frankly, on this project, the first casualty was the budget.

0:46:290:46:32

That went in the first week when I realised that we were going to have to rebuild all the walls

0:46:320:46:37

and rebuild the entire floor, because that just wasn't in the budget.

0:46:370:46:42

A certain amount was, but not all of it, certainly.

0:46:420:46:46

And I didn't have a breakdown of the budget, it was just... You just kept going.

0:46:460:46:52

There isn't an option, so there's no point in analysing the budget in microscopic detail,

0:46:520:46:58

because it will only depress you, and that does you no good at all.

0:46:580:47:02

'Claude did, in fact, spend £53,000 here, 13 grand over his original estimate.

0:47:020:47:08

'Even so, his costs were reduced as he did much of the work himself.

0:47:080:47:13

'Add that to the £311,000 purchase price, plus stamp duty of just over nine grand,

0:47:130:47:19

'and you're talking a total outlay just short of £375,000 plus fees and expenses.

0:47:190:47:26

'Was it money well-spent? Let's see what two local estate agents think.'

0:47:260:47:31

The owner has done an amazing job here.

0:47:310:47:33

I like the way they've reconfigured the property

0:47:330:47:36

because you've then got two very good double bedrooms.

0:47:360:47:39

Off-street parking is inspired in this part of London.

0:47:390:47:42

And I'm sure it will be planted up and look fantastic

0:47:420:47:45

and that will give the front room more privacy, as well.

0:47:450:47:48

First impressions walking round, it's incredibly spacious.

0:47:480:47:51

Very light, in very good condition,

0:47:510:47:54

and presented to a very high standard.

0:47:540:47:57

'High praise for the finish, but what about the finances?

0:47:570:48:00

'Claude often does properties to rent,

0:48:000:48:03

'but with his higher than planned spend here, would renting be worthwhile?'

0:48:030:48:07

Renting this property out, I would recommend between £1,700 and £1,800 per calendar month.

0:48:080:48:13

£1,650 to £1,700 per calendar month.

0:48:130:48:17

They're on a par with what I think they should be,

0:48:170:48:20

but the yield is going to be around four percent. Quite frankly, it's not a great rental investment.

0:48:200:48:27

'So with Claude turning his attention to selling, what kind of price should he be expecting?'

0:48:270:48:33

We would be putting it on the market in the region of £430,000, £435,000,

0:48:330:48:37

and expect to achieve well over £420,000.

0:48:370:48:41

Putting it on the market, I would suggest the values would be between £420,000 and £430,000.

0:48:410:48:48

That's pretty well on a par with what my expectations are.

0:48:480:48:51

I know it's a lot higher than perhaps it was at the beginning.

0:48:510:48:55

But I was pretty confident that, with the standard of finish that I normally do,

0:48:550:49:01

that that was going to be the in-price as long as the market was relatively stable.

0:49:010:49:06

'Resale does seem to be the way to go here, and in fact,

0:49:060:49:10

'since filming, the flat's now under offer at £435,000.

0:49:100:49:15

'If all goes well, that will give Claude a pre-tax profit

0:49:150:49:19

'of around 60 grand, minus selling expenses.

0:49:190:49:23

'But does this make up for the problems he had?'

0:49:230:49:25

With the benefit of hindsight, would I have bought this property?

0:49:250:49:29

I'm not entirely sure, but you have to take the rough with the smooth,

0:49:290:49:34

and I think I'm coming out of it all right.

0:49:340:49:38

'We're back in Woodlands near Doncaster.

0:49:420:49:45

'Here property developer Hannah purchased this former Coal Board house at the auction

0:49:450:49:50

'for the fine price of £68,000. But with a technicality hiding in the legal pack,

0:49:500:49:56

'she came up against her first problem when it came to the finances.'

0:49:560:50:00

I had a bit of a problem with the property

0:50:010:50:04

because I wasn't aware that the majority of mortgage lenders won't lend on a property

0:50:040:50:08

that's only been owned by the previous owner

0:50:080:50:12

-for less than six months.

-So what did they say?

-No.

0:50:120:50:17

'But Hannah wasn't taking no for an answer.

0:50:170:50:20

'She managed to get help from a private investor at a cost of £5,000.

0:50:200:50:25

'Her plan was to renovate the house fully within a couple of months

0:50:250:50:28

'on a budget of around £7,000, with a view to renting it out.

0:50:280:50:33

'Four months later we're back to see if she's been plagued by problems

0:50:330:50:37

'or saved by an unexpected solution.'

0:50:370:50:40

Since you last came, I was approached by some previous tenants of my parents.

0:50:400:50:47

And they were looking for another property that was a bit bigger than the one they were living in,

0:50:470:50:52

in a different area, and this was the only one I had available at that moment in time.

0:50:520:50:58

So I showed them the property just to engage their thoughts

0:50:580:51:03

with a view to renovating it and then being able to move in at a later date.

0:51:030:51:08

But when I showed them round the property, they absolutely loved it and decided to take it on as it is,

0:51:080:51:13

and they would do any work that needed doing themselves. So it's currently let out.

0:51:130:51:19

'So Hannah rented the house out to local couple Lisa and Mark,

0:51:190:51:23

'who were happy to turn this house into their home, and at their own expense.

0:51:230:51:28

'The main jobs to do here were re-flooring and re-carpeting throughout,

0:51:330:51:38

'as well as dealing with the decor.

0:51:380:51:41

'After clearing and cleaning the property from top to bottom,

0:51:410:51:44

'Mark and Lisa put down laminate floors and carpets and got their paint brushes out.

0:51:440:51:50

'But why were they happy to do this in a house they don't own?'

0:51:500:51:53

If you are a tenant, and you're renting somewhere, I think it's nice for the tenant and the landlord

0:51:530:51:59

that both have a bit of input and keep the property nice.

0:51:590:52:03

A lot of properties, when you're renting, I think, are done up to how the owner wants it.

0:52:030:52:08

But they said we could do what we want, so that's great.

0:52:080:52:12

'So this way Lisa and Mark get to live where they want to

0:52:120:52:16

'and make it home in a way most tenants can't.

0:52:160:52:20

'Lisa has two children who visit regularly and two that live at home.

0:52:200:52:24

'The layout of the upstairs, which was slightly odd

0:52:240:52:27

'with the bathroom and loft only accessible from one room, actually suits them down to the ground.'

0:52:270:52:33

Well, this is the children's bedroom.

0:52:330:52:36

As you can see, this is the bathroom

0:52:360:52:39

off the children's bedroom, which is great because this isn't our room

0:52:390:52:43

so we're in and out and we know what the kids are doing.

0:52:430:52:46

Up there is the attic, which the children use as a playroom.

0:52:460:52:50

'And it's not the only place for play.

0:52:500:52:53

'The additional garden behind the garage was a fantastic space

0:52:530:52:56

'which Mark and Lisa have already started making the most of.

0:52:560:53:00

'Anyone for a dip?'

0:53:000:53:03

Right, this outside area is ideal for us

0:53:030:53:09

because what we are going to do is clear in between the shrubs and all the plants,

0:53:090:53:13

replant, look at what's here, and try and build on it.

0:53:130:53:17

The other thing that we're going to do is put a bar in here,

0:53:170:53:20

and there will be a seating area and sun loungers and that type of thing.

0:53:200:53:24

So it's ideal for the kids and that, and myself and whatnot.

0:53:240:53:28

It's a space away from... Even though we've got space at the front,

0:53:280:53:32

it's further developed space that we could utilise again.

0:53:320:53:35

So I'm just really happy with it. It's fantastic.

0:53:350:53:38

'Lisa and Mark are clearly very happy here. But what does Hannah think about what they've done?'

0:53:390:53:44

I think they've got it looking really nice. They're ideal tenants, they always pay their rent on time,

0:53:440:53:50

they look after the place, they let me know if there's any problems,

0:53:500:53:53

and also because I haven't renovated the property myself and I haven't lived in the property,

0:53:530:53:58

things came up, like the boiler wasn't functioning,

0:53:580:54:01

but I didn't know that until they started living and using it properly.

0:54:010:54:05

So it's a perfect solution for us both, really.

0:54:050:54:07

'So everyone's a winner.

0:54:070:54:10

'We asked two local estate agents along to the property

0:54:100:54:13

'to get their take on it. Remember Hannah paid £68,000 for the house,

0:54:130:54:17

'plus an additional £5,000 arranging the finance privately.

0:54:170:54:21

'Which makes the total outlay of £73,000.'

0:54:210:54:25

First impressions, it's nicely done out, it's nicely decorated,

0:54:250:54:29

it's clean, nice kitchen, good sized living room.

0:54:290:54:33

First impressions are good, it's a nice location here,

0:54:330:54:35

you're overlooking the park to the front.

0:54:350:54:38

The property has been done up to a reasonable standard.

0:54:380:54:41

And it's probably based for the rental market, I would have thought.

0:54:410:54:46

The rental value for the property I would estimate £495 at a push,

0:54:480:54:53

but probably more realistic, £475 per calendar month.

0:54:530:54:58

The rental valuation for this property is £500 per calendar month.

0:54:580:55:02

Well, the current tenants pay £525. So I get a bit more than that.

0:55:020:55:08

'With Hannah receiving £525 a month

0:55:080:55:12

'and her total spend here being around £73,000,

0:55:120:55:15

'that's an impressive rental yield of over 8.5 percent.

0:55:150:55:19

'If she were to consider selling, what could it make on the resale market?'

0:55:190:55:23

If we were going to be selling this property, I would suggest an initial marketing price of £89,995,

0:55:250:55:31

with a view to achieving £85,000.

0:55:310:55:35

I would value this property at £95,000.

0:55:350:55:38

OK. Well, that's good news considering I haven't actually done anything to the property myself.

0:55:380:55:45

I do think if I had renovated it completely, and done it how I normally do it,

0:55:450:55:49

I think it would have valued up higher. But I'm more than happy with that valuation.

0:55:490:55:55

'As well she should be.

0:55:550:55:57

'If Hannah did decide to sell and given that she hasn't had to dip into her renovation budget,

0:55:570:56:03

'she could be looking at a pre-tax profit of between £12,000 and £22,000

0:56:030:56:08

'minus the usual selling expenses.

0:56:080:56:10

'This has been a great purchase for Hannah, and based on her own experiences,

0:56:100:56:15

'she's got some sound advice for any would-be auction buyers.'

0:56:150:56:19

There's no reason whatsoever that buying at auction is a bad thing,

0:56:190:56:24

providing you are well-prepared and you've got your finance in place beforehand,

0:56:240:56:29

and you do the research, as far as the legalities.

0:56:290:56:32

And I would always make sure that you view the property well in advance of the auction,

0:56:320:56:36

so that it's not a rash decision. You can think about it properly and make sure it's the right choice for you.

0:56:360:56:42

We look forward to seeing you soon for more Homes Under The Hammer.

0:56:450:56:49

-Yes, join us next time for more auction action.

-See you then.

-Bye.

-Goodbye.

0:56:490:56:54

Subtitles by Red Bee Media Ltd

0:56:570:57:01

E-mail [email protected]

0:57:010:57:05

.

0:57:050:57:05

Martin Roberts and Lucy Alexander visit a two-bed bungalow in Wiltshire, a ground-floor flat in Balham, London, and a three-bed end of terrace in Yorkshire. All of the properties have been sold at auction - find out who bought them and what they paid when they went under the hammer.