0:00:02 > 0:00:05- Welcome to the show.- We're always being told to save for the future.
0:00:05 > 0:00:07That's especially important now
0:00:07 > 0:00:09with people looking to supplement their pension
0:00:09 > 0:00:11or invest their savings.
0:00:11 > 0:00:16Property is an attractive option and you can find it in the auction rooms.
0:00:42 > 0:00:45If, like us, you hope property will be a fruitful investment,
0:00:45 > 0:00:48you've got to make sure you buy wisely.
0:00:48 > 0:00:52That means doing your research, so you know what you're taking on.
0:00:52 > 0:00:55So did our buyers find some good deals at the auctions today?
0:00:55 > 0:00:56Let's take a look.
0:00:58 > 0:01:01In Hertford, a lock house that makes me forget I'm here to work.
0:01:01 > 0:01:06How fantastic to sit here on a summer's evening, glass of wine...
0:01:07 > 0:01:11In London, I get up close and personal with a house in need of a hug.
0:01:11 > 0:01:13Hold me close, don't let me go.
0:01:13 > 0:01:16I don't think it's going to make anybody feel sentimental.
0:01:17 > 0:01:20And in Higher Blackley in Manchester,
0:01:20 > 0:01:22a property served with a slice of romance.
0:01:22 > 0:01:27It's like walking into the insides of a fluffed-up wedding cake.
0:01:29 > 0:01:32All these properties were sold at auction.
0:01:32 > 0:01:34We'll find out who bought them and what they paid
0:01:34 > 0:01:37- when they went under the hammer. - Sold.
0:01:41 > 0:01:43I'm in picturesque Hertford in Hertfordshire.
0:01:43 > 0:01:46It feels a world away from the centre of London,
0:01:46 > 0:01:50which is just 19 miles south, and I couldn't be happier.
0:01:50 > 0:01:53One of the things that I love about Homes Under The Hammer
0:01:53 > 0:01:57is the variety of property that comes up at the auction.
0:01:57 > 0:02:00And today is no exception.
0:02:00 > 0:02:02Let me give you some clues.
0:02:02 > 0:02:05It's got its own mooring, it's right by the side of the canal...
0:02:06 > 0:02:10That's right. It's the old lock-keeper's cottage.
0:02:10 > 0:02:12Fantastic!
0:02:17 > 0:02:22The lock-keeper lucked out, eh? What an impressive house to work from.
0:02:22 > 0:02:26Built in the late 1800s and guided at auction at 95,000,
0:02:26 > 0:02:29it could easily grace a box of chocolates.
0:02:29 > 0:02:32As for the setting, it's just glorious, isn't it?
0:02:32 > 0:02:34A truly idyllic spot.
0:02:34 > 0:02:37# How lucky can you get? #
0:02:39 > 0:02:42So what's in store when you open the door?
0:02:43 > 0:02:46Well, it's not quite as cute inside as it is on the outside.
0:02:46 > 0:02:49This is one big living room area, I suppose.
0:02:49 > 0:02:53Nice it's got an open fire but it's being let down
0:02:53 > 0:02:57by the, well, by the wallpaper
0:02:57 > 0:03:00and these beams, they just don't particularly work.
0:03:00 > 0:03:02But you've got stairs up to the bedrooms there
0:03:02 > 0:03:05and then through into this anteroom here
0:03:05 > 0:03:08and another slight disappointment, that's the kitchen -
0:03:08 > 0:03:11as you can see, absolutely tiny.
0:03:11 > 0:03:14So a bit of internal jiggery-pokery required
0:03:14 > 0:03:19but something I've just spotted which is much more serious is this,
0:03:19 > 0:03:20a fairly nasty crack.
0:03:20 > 0:03:24But look at this. I wouldn't mind hazarding a guess
0:03:24 > 0:03:29that when this was on display,
0:03:29 > 0:03:34that was on there like that, covering up the crack.
0:03:34 > 0:03:39So, a tip - if you go in a property, and there's something like this on the wall, take a look behind it
0:03:39 > 0:03:42because that is quite serious.
0:03:42 > 0:03:45Yes, beware makeshift wall coverings,
0:03:45 > 0:03:47as they could be hiding a multitude of sins.
0:03:47 > 0:03:52Of course, getting a survey done is a good idea, whenever possible.
0:03:52 > 0:03:56This house really does need some serious reconfiguring.
0:03:56 > 0:03:59As things stand, it doesn't feel all that homely inside.
0:03:59 > 0:04:01The large lounge is pleasant
0:04:01 > 0:04:05but the rooms leading off it all feel a bit unnecessary
0:04:05 > 0:04:10and I would definitely open the kitchen up by knocking through to this anteroom
0:04:10 > 0:04:11to make better use of the space.
0:04:11 > 0:04:14Time to head upstairs.
0:04:14 > 0:04:18Well, up here, two fairly small bedrooms, so not that interesting.
0:04:18 > 0:04:22However, what really is interesting is the history of this place.
0:04:22 > 0:04:27There's been a lock-keeper's cottage here since the 1770s.
0:04:27 > 0:04:31The original one was knocked down to be replaced by this one in 1887
0:04:31 > 0:04:34and what's even more interesting
0:04:34 > 0:04:37is that I actually have a list of all the lock keepers
0:04:37 > 0:04:38going back to 1773,
0:04:38 > 0:04:42when James Shadbolt was paid eight shillings a week
0:04:42 > 0:04:47to look after the navigation near Hertford and the upper turnpike.
0:04:47 > 0:04:49It goes on, there's another here.
0:04:49 > 0:04:53John Smith in 1873, he was a long-time invalid.
0:04:53 > 0:04:55His work was done by wife and child.
0:04:55 > 0:05:00And it goes all the way up to 1939, when Henry Silver was appointed
0:05:00 > 0:05:05on 29th of July and paid 26 shillings a week
0:05:05 > 0:05:07and a house and a uniform.
0:05:08 > 0:05:11Absolutely fantastic.
0:05:12 > 0:05:15It's not just a house you're buying but a piece of history.
0:05:18 > 0:05:22Unfortunately, there's no access by car, only by towpath.
0:05:22 > 0:05:24From a practical point of view,
0:05:24 > 0:05:26quite apart from lugging shopping bags,
0:05:26 > 0:05:31it could make getting tradesmen and materials here for any renovations quite tricky.
0:05:31 > 0:05:35And the location isn't recognised by sat nav.
0:05:35 > 0:05:38However, it does come with a mooring facility and has a lovely garden.
0:05:40 > 0:05:43Well, one of the great joys of owning this house
0:05:43 > 0:05:46is the garden that surrounds it.
0:05:46 > 0:05:48How fantastic to sit here on a summer's evening,
0:05:48 > 0:05:52glass of wine, just watching the world go by.
0:05:52 > 0:05:59Unfortunately, the world is going to be watching you as they go by
0:05:59 > 0:06:02because this is a public footpath.
0:06:02 > 0:06:06It runs right in front of the lock-keeper's cottage here
0:06:06 > 0:06:09and it's fairly actively used,
0:06:09 > 0:06:13so if it's privacy you're after, this ain't the place for you.
0:06:14 > 0:06:18It was the place for someone, though, as it sold at auction.
0:06:18 > 0:06:21I wanted to get a local estate agent's take on this house,
0:06:21 > 0:06:23guided at 95,000.
0:06:23 > 0:06:25It's got a lot of potential. It's a great location,
0:06:25 > 0:06:27out here in the middle of nowhere,
0:06:27 > 0:06:31but it's also only a five-minute walk from amenities,
0:06:31 > 0:06:34so, yeah, I'm impressed in terms of its potential, definitely.
0:06:34 > 0:06:36You'd need a new kitchen, a new bathroom.
0:06:36 > 0:06:39You'd need to start from scratch. It's quite a big project.
0:06:39 > 0:06:43But I still think it's a project that will work for somebody,
0:06:43 > 0:06:47providing they don't go too crazy on bath taps and that kind of thing.
0:06:47 > 0:06:52Wise words, there. Stick to that budget and never lose sight of the end value.
0:06:52 > 0:06:55Speaking of which, how much could someone stand to make?
0:06:56 > 0:07:01Rental per calendar month is roughly around £1,200 per month.
0:07:01 > 0:07:02And a sell-on value?
0:07:02 > 0:07:05When renovated, I would expect around £385,000.
0:07:07 > 0:07:11Well, people love finding somewhere different to live
0:07:11 > 0:07:13and this place is certainly that.
0:07:13 > 0:07:15But it doesn't come without negatives.
0:07:15 > 0:07:18I wouldn't like people traipsing right in front of my living room
0:07:18 > 0:07:21and you've got access issues coming out of your ears.
0:07:21 > 0:07:25However, I'm sure that someone fell in love with it
0:07:25 > 0:07:27when it went under the hammer.
0:07:31 > 0:07:34To lot 50, now, which is the lock house.
0:07:34 > 0:07:37I think we've got some phone bids. I've also got a proxy bid myself.
0:07:37 > 0:07:40So over to you. Where would you like to kick off?
0:07:40 > 0:07:44How much? 90? 100,000 anywhere?
0:07:44 > 0:07:48Got 100. 110.
0:07:48 > 0:07:50Bidding on the property was fierce,
0:07:50 > 0:07:54with several parties keen to lock down the lock house.
0:07:54 > 0:07:59We rejoin the auction as bids reach 265,000.
0:07:59 > 0:08:02265. 266.
0:08:02 > 0:08:05267. 268. 269.
0:08:08 > 0:08:10269. 270?
0:08:10 > 0:08:14271, madam? Yeah? 272.
0:08:15 > 0:08:18One more crack? You're both sort of very close.
0:08:18 > 0:08:22If not, 271. 272 anywhere else?
0:08:22 > 0:08:28If not, 271, the first time, second time, third and last time.
0:08:28 > 0:08:30Have you all done? GAVEL BANGS
0:08:30 > 0:08:34Sold, 271. Well done. Nice-looking property.
0:08:34 > 0:08:38The successful bid of £271,000,
0:08:38 > 0:08:42£176,000 over the guide price,
0:08:42 > 0:08:44came from trainee lawyer Marie.
0:08:44 > 0:08:46She was at the auction with her brother Mark.
0:08:46 > 0:08:49Marie was bidding on behalf of her dad, Ty,
0:08:49 > 0:08:50a retired council worker.
0:08:50 > 0:08:54I met father and daughter back at the house to find out more.
0:08:54 > 0:08:57- Marie, Ty, good to meet you both. - Hello.
0:08:57 > 0:09:00- What a lovely property you have bought.- Thank you.
0:09:00 > 0:09:02- It's gorgeous, isn't it?- Yes.
0:09:02 > 0:09:05Tell me why you wanted to buy it.
0:09:05 > 0:09:08Basically, we saw it in the auction catalogue.
0:09:08 > 0:09:12I was looking for myself, originally, then we saw it for Dad and Mum -
0:09:12 > 0:09:13fell in love with it.
0:09:13 > 0:09:18- So you were bidding at the auction...- Yeah. - ..on behalf of...- My dad.
0:09:18 > 0:09:21- Where was Mum and Dad? - We were in Turkey.- On holiday? - On holiday.
0:09:21 > 0:09:23And when did you hear that you'd got it?
0:09:23 > 0:09:26My son was on the phone to me
0:09:26 > 0:09:30and I was expecting about 1.15 Turkish time,
0:09:30 > 0:09:32which is 11.15 London time.
0:09:32 > 0:09:37It came about 1.34, about 20 minutes later.
0:09:37 > 0:09:38That was the longest wait.
0:09:38 > 0:09:41- So you were on the phone back in...? - Yeah.
0:09:41 > 0:09:43My brother was telling them what we were bidding.
0:09:43 > 0:09:47They were going, "OK, OK, go for it, go for it." Yeah.
0:09:47 > 0:09:50Now, it went a lot over the guide price
0:09:50 > 0:09:53but I suspect the guide price was probably quite low.
0:09:53 > 0:09:55It was ridiculously low.
0:09:55 > 0:09:58- I don't know whether they did it deliberately...- Probably.
0:09:58 > 0:10:01- ..in order to attract people. - They do that.
0:10:01 > 0:10:04When we came to see the place, there was a traffic jam.
0:10:04 > 0:10:09- We couldn't get down to it. - If they'd priced it at 500,000, nobody would have turned up.
0:10:09 > 0:10:13- So why were you so keen to buy it? - We just love this place.
0:10:13 > 0:10:16- Tell me why.- There's so much potential, so much we can do
0:10:16 > 0:10:19and it's so beautiful.
0:10:20 > 0:10:25It sure is - or it could be, depending on what they decide to do to the property.
0:10:25 > 0:10:29What extensions and improvements are you planning to make?
0:10:29 > 0:10:33We're going to renovate it. We're going to enlarge the kitchen.
0:10:33 > 0:10:36We're putting a conservatory on the side.
0:10:36 > 0:10:39- And leaving the front as it is? - Exactly as it is.
0:10:39 > 0:10:43We're going to change the windows but in the same style.
0:10:43 > 0:10:47The main focus will be for us is the balance
0:10:47 > 0:10:50and harmony
0:10:50 > 0:10:52and integrity of the building,
0:10:52 > 0:10:56so that it's not a stuck-on conservatory - it will match,
0:10:56 > 0:10:58with the gable on the side.
0:10:58 > 0:11:02I mean, it is so cute, isn't it?
0:11:02 > 0:11:06How are you going to expand it without ruining that cuteness?
0:11:06 > 0:11:09- We've got some specialist architects coming...- Right.
0:11:09 > 0:11:11..who are going to advise us.
0:11:11 > 0:11:13It's only two bedrooms. Is that big enough?
0:11:13 > 0:11:16Another reason we bought it is because we've got mooring rights,
0:11:16 > 0:11:20so the next project is to get a barge, Dutch barge,
0:11:20 > 0:11:24and convert it into a two or three-bedroom place.
0:11:24 > 0:11:28- Right, so you don't have a boat at the moment...- But we're going to.
0:11:28 > 0:11:30Me and my brother and friends will stay on the barge
0:11:30 > 0:11:32while Mum and Dad live in the house,
0:11:32 > 0:11:37- when we come to visit.- Oh, wow. How cool is that?- Very cool.
0:11:37 > 0:11:40I'll say. What a novel way of extending your living space.
0:11:40 > 0:11:43Ty's budget is around £50,000.
0:11:43 > 0:11:46He has had a fair amount of renovation experience,
0:11:46 > 0:11:50although nothing on this scale or to the standard he's planning
0:11:50 > 0:11:53for this retirement pad.
0:11:53 > 0:11:56What involvement are you and your brother going to have in the renovation?
0:11:56 > 0:12:00I can see us stripping walls, painting, things like that.
0:12:00 > 0:12:03Anything to help out - I think that's what we'll do.
0:12:03 > 0:12:06- It's a house that you want to get involved in. - It's gorgeous, you know.
0:12:06 > 0:12:09Who'd mind being here? It's nice to get out of the city.
0:12:09 > 0:12:14Isn't it just? But the time to relax hasn't come yet.
0:12:14 > 0:12:17Ty's aiming to complete the renovation in six months.
0:12:17 > 0:12:20This includes the time it takes to get permission from the council
0:12:20 > 0:12:23and British Waterways to carry out any works.
0:12:23 > 0:12:27The Waterways sold the property on with a covenant in place,
0:12:27 > 0:12:31so Ty must contact them before he can proceed with his plans.
0:12:31 > 0:12:33Well, congratulations. Well done.
0:12:33 > 0:12:36- I'm a little bit jealous but I wish you all the best.- Thank you.
0:12:39 > 0:12:44Ty and his family are clearly delighted to have bought this property, and who can blame them?
0:12:44 > 0:12:47Find out what they do with it later in the programme.
0:12:57 > 0:12:59I've travelled to Plaistow in East London,
0:12:59 > 0:13:03a vibrant and well-connected part of the capital.
0:13:03 > 0:13:07It's also the birthplace of singer and actor David Essex.
0:13:07 > 0:13:11The question is does the auction lot I'm here to see have showbiz quality
0:13:11 > 0:13:15and will it have the potential to be turned into a star?
0:13:17 > 0:13:19# I'm coming home soon
0:13:19 > 0:13:22# I'm going to make you a star. #
0:13:22 > 0:13:27If the other properties in the street are anything to go by, maybe...
0:13:27 > 0:13:31Or maybe not. Here it is, in all its burnt-out glory.
0:13:31 > 0:13:34Look at that! Hold me close, don't let me go.
0:13:34 > 0:13:37I don't think it's going to make anybody feel sentimental.
0:13:37 > 0:13:40But it was guided at 155,000,
0:13:40 > 0:13:44so maybe somebody will want to get up close and personal with this house.
0:13:44 > 0:13:48Let's have a look inside this two-bedroom, Victorian property.
0:13:49 > 0:13:51There's obviously some fire damage,
0:13:51 > 0:13:54although, thankfully, no-one was injured.
0:13:54 > 0:13:57But whilst it doesn't look so welcoming from the outside,
0:13:57 > 0:13:59appearances can be deceptive.
0:13:59 > 0:14:03# Can't judge a book by looking at the cover... #
0:14:05 > 0:14:09Well, it's certainly one huge room that you walk into here.
0:14:09 > 0:14:12That's because the owner has taken out this wall
0:14:12 > 0:14:16and created this rather large, open-plan living space.
0:14:16 > 0:14:18You know, you can be in either camp.
0:14:18 > 0:14:21You like the big space or you would reinstate the wall
0:14:21 > 0:14:23and have two reception rooms.
0:14:23 > 0:14:26That might be a good idea if you're planning on letting to tenants.
0:14:26 > 0:14:29But one thing I have noticed, which is a big old tick,
0:14:29 > 0:14:32the windows are in really good nick.
0:14:32 > 0:14:35Seeing those boards outside sometimes frightens you.
0:14:35 > 0:14:37You think, "I may need to replace the windows."
0:14:37 > 0:14:40But in this case, they're in really good condition,
0:14:40 > 0:14:42so, you know, a bit of money saved there.
0:14:42 > 0:14:46The kitchen, well, half the ceiling's fallen down.
0:14:46 > 0:14:49That really does need a bit of a reconfigure.
0:14:49 > 0:14:53But my guess is that most of the damage is upstairs
0:14:53 > 0:14:56because it doesn't look too bad down here.
0:14:56 > 0:14:59I'm going to go upstairs and check it out. Wish me luck.
0:15:01 > 0:15:03Yes, it's certainly in a bad way up here
0:15:03 > 0:15:07and you can really smell the burning.
0:15:07 > 0:15:10Gosh, it's incredibly shabby
0:15:10 > 0:15:12and it needs a lot of attention.
0:15:12 > 0:15:16You can see one of the bedrooms there is just falling apart.
0:15:16 > 0:15:18All the windowsills have melted.
0:15:18 > 0:15:21The second bedroom through here is in a bad way.
0:15:21 > 0:15:24I'm not going to venture through there because it's dangerous.
0:15:24 > 0:15:29And the bathroom is going to completely need ripping out
0:15:29 > 0:15:31and starting over.
0:15:31 > 0:15:35One thing's for sure - a structural survey is needed here.
0:15:36 > 0:15:41Anyone buying a property should obtain a structural survey before parting with their pennies
0:15:41 > 0:15:43but here, it's crucial.
0:15:43 > 0:15:46The fire damage may just look superficial to the untrained eye
0:15:46 > 0:15:49but could explain all sorts of nasty surprises.
0:15:49 > 0:15:53Getting the gas and electrics looked at is an absolute must.
0:15:53 > 0:15:56If you're thinking of purchasing something similar,
0:15:56 > 0:15:58always get the experts in.
0:15:58 > 0:16:01The layout here could benefit from a rejig.
0:16:01 > 0:16:05The large bathroom could be made into a third bedroom
0:16:05 > 0:16:09but that would mean creating a new bathroom downstairs.
0:16:09 > 0:16:11Alternatively and less expensively,
0:16:11 > 0:16:13the large lounge could be split in two
0:16:13 > 0:16:16to create a downstairs bedroom.
0:16:16 > 0:16:18It's great for a property to have possibilities
0:16:18 > 0:16:21but it all depends on who's going to live in it.
0:16:22 > 0:16:25Now, if you were thinking of letting this,
0:16:25 > 0:16:29it's an ideal garden for tenants, as it's paved and low-maintenance.
0:16:29 > 0:16:31It's not the biggest outside space
0:16:31 > 0:16:32but one way to improve it
0:16:32 > 0:16:35would be to have some large doors leading out from the kitchen
0:16:35 > 0:16:37where that window is.
0:16:37 > 0:16:40Now, after looking around a fire-damaged property all morning,
0:16:40 > 0:16:43it's quite nice to get some fresh air.
0:16:45 > 0:16:50There was a light drizzle but a rainy day is ideal to view a property,
0:16:50 > 0:16:53as it lets you see if the guttering is doing its job or not,
0:16:53 > 0:16:55as the case may be.
0:16:56 > 0:16:59# Let it rain Let it rain
0:16:59 > 0:17:03# Let it rain, rain, rain... #
0:17:03 > 0:17:06Looking at this guttering and downpipe,
0:17:06 > 0:17:09there's no drain here to collect the rainwater.
0:17:09 > 0:17:12But at least there's a slight incline to help the water escape
0:17:12 > 0:17:14and flow out into the road
0:17:14 > 0:17:17but I can't help think it's far from ideal.
0:17:17 > 0:17:20On a rainy day, you don't want a big muddy puddle
0:17:20 > 0:17:22right outside your front door.
0:17:23 > 0:17:26We asked a local estate agent to dish the dirt
0:17:26 > 0:17:29on this fire-damaged property
0:17:29 > 0:17:31and its £155,000 guide price.
0:17:33 > 0:17:35It needs a little bit of refurbishment!
0:17:35 > 0:17:38I think it needs new wiring,
0:17:38 > 0:17:40a new central heating system.
0:17:40 > 0:17:44I would personally take the whole lot out and start again.
0:17:44 > 0:17:48It's got great potential, though. It's a nice family home.
0:17:48 > 0:17:54If the purchaser does the required work, what could they sell the house on for?
0:17:54 > 0:17:57Approximately £200,000 as a two-bed.
0:17:57 > 0:18:03As a three-bed, I would put it on the market for £225,000.
0:18:03 > 0:18:06What monthly rental could it earn?
0:18:06 > 0:18:11As a two-bed, you'd be looking at a rental income of about £1,000.
0:18:11 > 0:18:16As a three-bed, you would be looking at a rental income of about £1,200.
0:18:18 > 0:18:21Dangerous, dingy and burnt-out,
0:18:21 > 0:18:24this house requires an extensive makeover.
0:18:24 > 0:18:28It won't be a cheap job but once renovated, well,
0:18:28 > 0:18:30it could be a nice little earner
0:18:30 > 0:18:33and so maybe it could be a good rental investment.
0:18:33 > 0:18:36Let's find out who agreed with me as we go to auction.
0:18:40 > 0:18:42I like this lot.
0:18:42 > 0:18:44150, anywhere? Yes? 150.
0:18:44 > 0:18:47Thank you. 150. 151.
0:18:47 > 0:18:51152. 153.
0:18:51 > 0:18:53154, 155.
0:18:53 > 0:18:56156, 157.
0:18:56 > 0:18:59158. 159.
0:18:59 > 0:19:02160, 161.
0:19:02 > 0:19:04162, 163.
0:19:04 > 0:19:07164, 165.
0:19:08 > 0:19:11166. 167?
0:19:11 > 0:19:13168, 169.
0:19:15 > 0:19:17170. 171?
0:19:17 > 0:19:19172. 173?
0:19:20 > 0:19:22174. 175.
0:19:23 > 0:19:25176?
0:19:26 > 0:19:29Have a think. 176 elsewhere?
0:19:30 > 0:19:35176? Another 1,000. If not, 175 for the first time.
0:19:35 > 0:19:39Second time. Third and last time. Are you all done?
0:19:40 > 0:19:42Sold, 175. Well bought.
0:19:42 > 0:19:48That successful bid of 175,000 came from entrepreneur Sidney,
0:19:48 > 0:19:50who attended the auction with his niece.
0:19:50 > 0:19:52He runs and owns a children's nursery
0:19:52 > 0:19:55and an ink-cartridge refilling business,
0:19:55 > 0:19:58plus he develops property as a sideline
0:19:58 > 0:20:00and he's no stranger to this street.
0:20:09 > 0:20:14Sidney, congratulations. Great news for you that you managed to secure this on auction day.
0:20:14 > 0:20:16Why did you want to buy it?
0:20:16 > 0:20:19I bought my first house on this street 11 years ago.
0:20:19 > 0:20:24- Really?- Yeah. And when I saw it, I thought it would be nice to have this as well.
0:20:24 > 0:20:26So is this an identical house to the other one you own?
0:20:26 > 0:20:29It is identical but this is a bit bigger.
0:20:29 > 0:20:32So what do you want to do with this and why did you want another house?
0:20:32 > 0:20:35I want to rent it out, do it up a bit and then rent it out
0:20:35 > 0:20:38and just for investment, really, for the future.
0:20:38 > 0:20:41- So did you view this property prior to the auction?- I did.
0:20:41 > 0:20:43Did the fire damage not put you off?
0:20:43 > 0:20:46Not really because I sort of saw...
0:20:46 > 0:20:50Well, I know how much damage was done. It was kind of cosmetic.
0:20:50 > 0:20:52No structural damage.
0:20:52 > 0:20:56- So did you get a structural survey before the auction?- Yes, yes.
0:20:56 > 0:21:01- So you could read that and have the safety net of knowing there was nothing wrong with it.- Yes.
0:21:01 > 0:21:06Sidney made the sensible decision to have this surveyed before the auction.
0:21:06 > 0:21:09This means he can cost the job properly
0:21:09 > 0:21:13and knowing he doesn't have to rectify any serious structural damage
0:21:13 > 0:21:16will save him some serious cash.
0:21:16 > 0:21:19So what is the big plan? Where are you going to start?
0:21:19 > 0:21:23- You've got some work to do before you can let this.- That's right.
0:21:23 > 0:21:26I'm going to start upstairs, stripping the ceiling down,
0:21:26 > 0:21:29the plaster of the wall and replastering
0:21:29 > 0:21:31and then a partition is coming down here
0:21:31 > 0:21:36and obviously the wiring is redone, the plumbing, central heating,
0:21:36 > 0:21:38boiler, everything.
0:21:38 > 0:21:41So you're going to partition this room. That's interesting.
0:21:41 > 0:21:45That's what my tenants have asked for. I have tenants lined up already.
0:21:45 > 0:21:48- So currently it's a two-bedroom property...- Yes.
0:21:48 > 0:21:52..with a bathroom upstairs. Are you keeping that configuration?
0:21:52 > 0:21:56For now, I am, because I need to get it done as quickly as possible.
0:21:56 > 0:22:00- So that means you'll have two reception rooms downstairs?- Yes.
0:22:00 > 0:22:04- And are you going to keep that as two reception rooms?- Yeah.
0:22:04 > 0:22:06Well, the tenants can do what they want.
0:22:06 > 0:22:08Sidney's in a good position here.
0:22:08 > 0:22:12His tenants are ready to move in and pay £1,100 a month in rent.
0:22:12 > 0:22:15For now, he's holding off the more pricy idea
0:22:15 > 0:22:17of moving the bathroom downstairs
0:22:17 > 0:22:21because there's some pressure when it comes to how he financed the property.
0:22:21 > 0:22:23The bulk of it is from my savings
0:22:23 > 0:22:26and then I got some money from my friends and my wife
0:22:26 > 0:22:28and as long as it's all done,
0:22:28 > 0:22:31hopefully, remortgage it and give them their money back.
0:22:31 > 0:22:36- Are you paying them interest? - Yes, I agreed 1% interest a month.
0:22:36 > 0:22:37- So that is fair.- Yes.
0:22:37 > 0:22:41- And because of that, it's allowed you to buy this property.- That's right.
0:22:41 > 0:22:43So you've got to do it as quick as poss,
0:22:43 > 0:22:46- so the pressure is on, financially, for you.- That's right.
0:22:46 > 0:22:49# Cos the heat is on... #
0:22:49 > 0:22:51Yes, the heat is on for Sidney.
0:22:51 > 0:22:54He's given himself six to eight weeks to get this place up to scratch.
0:22:54 > 0:22:57And although he's got eight other properties,
0:22:57 > 0:22:59this is his biggest project to date.
0:22:59 > 0:23:01# The heat is...
0:23:02 > 0:23:04# On... #
0:23:04 > 0:23:06I've never done this much work before.
0:23:06 > 0:23:09Yeah, this is a major project for me.
0:23:09 > 0:23:12- And are you intending on doing the work yourself?- No.
0:23:12 > 0:23:15- So you're getting guys in? - I'll leave it to the professionals.
0:23:15 > 0:23:20Well, for an undertaking like this, that's exactly the right decision.
0:23:20 > 0:23:23It's not as if he's got plenty of time on his hands.
0:23:23 > 0:23:25As well as his property portfolio,
0:23:25 > 0:23:28he owns and runs a nursery for under-fives
0:23:28 > 0:23:32and has an ink-cartridge refilling franchise.
0:23:32 > 0:23:35How do you find the time to keep over everything?
0:23:35 > 0:23:37Well, the nursery has got its own manager.
0:23:37 > 0:23:39The shop has its own manager as well
0:23:39 > 0:23:43and all I do is just, you know, pop in whenever they need me.
0:23:43 > 0:23:45- Great job for you.- Thank you.
0:23:45 > 0:23:49So are you a busy guy? Are you running around checking everything out?
0:23:49 > 0:23:51Yeah, I would say I am fairly busy, yes.
0:23:51 > 0:23:53Keeps me out of trouble.
0:23:53 > 0:23:56What is your budget? How much money have you got to do the work?
0:23:56 > 0:23:59I have got 15-20,000.
0:23:59 > 0:24:02- And that's tops?- 20,000, tops.
0:24:02 > 0:24:05Sidney, good luck with this project. I hope it's done in time
0:24:05 > 0:24:08- and that your tenants are very happy. - Thank you very much.
0:24:10 > 0:24:11Sidney isn't fazed by this job.
0:24:11 > 0:24:14In fact, Mr Organised relishes the challenge.
0:24:14 > 0:24:17£15-20,000, that is a healthy budget
0:24:17 > 0:24:20but will it be enough to overhaul this property
0:24:20 > 0:24:23and will he complete it all in just six to eight weeks?
0:24:23 > 0:24:25Those tenants are waiting and lined up.
0:24:25 > 0:24:28You can find out how he gets on later in the programme.
0:24:30 > 0:24:35Coming up, this house in Higher Blackley feels a bit off colour.
0:24:35 > 0:24:37But what is that?
0:24:37 > 0:24:39I don't like to see any discolouration like that.
0:24:41 > 0:24:45In Plaistow, we find out if Sidney kept a close eye on proceedings.
0:24:45 > 0:24:47I have to be honest, I wasn't here.
0:24:47 > 0:24:50I was away in Japan for most of the project. I was away for a month.
0:24:51 > 0:24:56But first, did Ty sink or swim renovating the lock house?
0:24:56 > 0:25:00It took nearly 14 months and that cost us a lot of money.
0:25:03 > 0:25:05Now we're back in Hertford,
0:25:05 > 0:25:10where Ty spent £271,000 on this charming lock-keeper's house.
0:25:11 > 0:25:15When I met Ty and his daughter Marie, they were over the moon
0:25:15 > 0:25:16about the purchase.
0:25:16 > 0:25:20- So why were you so keen to buy it? - We just love this place.
0:25:20 > 0:25:24- Tell me why.- So much potential, so much we can do
0:25:24 > 0:25:26and it's so beautiful.
0:25:26 > 0:25:30Ty and his wife bought it to retire to
0:25:30 > 0:25:33and planned to renovate it to suit their needs for 50,000
0:25:33 > 0:25:34over a six-month period.
0:25:34 > 0:25:39So did they manage to unlock the full potential of the lock house?
0:25:39 > 0:25:43Well, nearly two years later, we're back to find out.
0:26:22 > 0:26:25The inside looks amazing
0:26:25 > 0:26:28and green-fingered Ty turned what was just grass
0:26:28 > 0:26:31into a breathtaking garden.
0:26:32 > 0:26:35And of course, there's that extension.
0:26:37 > 0:26:40This is the new kitchen, which has been designed by my wife.
0:26:40 > 0:26:44This side used to be the little lean-to
0:26:44 > 0:26:47and now this is the shower room.
0:26:48 > 0:26:52That's the garden room with the big concertina doors.
0:26:53 > 0:26:56This new fireplace we bought
0:26:56 > 0:27:00and the new wood stove will be going into it.
0:27:00 > 0:27:03This is the area where we'll be spending more time
0:27:03 > 0:27:05because you can see the whole garden
0:27:05 > 0:27:08and it's absolutely wonderful if the sun is shining.
0:27:08 > 0:27:12And they didn't just extend outwards but upwards, too,
0:27:12 > 0:27:15where an extra bathroom and bedroom were added,
0:27:15 > 0:27:17plus there's now a fabulous bonus area
0:27:17 > 0:27:19leading off from the master bedroom.
0:27:19 > 0:27:22Well, as you can see, this is the new part
0:27:22 > 0:27:24of the extension.
0:27:24 > 0:27:26We're very pleased with this.
0:27:26 > 0:27:29As you can imagine, on a Sunday morning,
0:27:29 > 0:27:33having a coffee, sitting down, reading the paper,
0:27:33 > 0:27:37as if the whole sight of The Meads is your garden.
0:27:37 > 0:27:40Absolutely wonderful on a sunny day.
0:27:42 > 0:27:46You can really tell that Ty and his wife put their hearts and souls
0:27:46 > 0:27:49into turning this house into their ideal home.
0:27:49 > 0:27:54And they did it without compromising the unmistakable character and charm
0:27:54 > 0:27:57this place already had to offer.
0:27:57 > 0:27:59It was designed by the architect, basically,
0:27:59 > 0:28:01and we had to match everything,
0:28:01 > 0:28:06otherwise it won't be uniform and go with the character of the house.
0:28:06 > 0:28:10I think it's come out beautifully, particularly the garden room.
0:28:10 > 0:28:12Stunning as the house now looks,
0:28:12 > 0:28:15many unexpected difficulties have had to be overcome,
0:28:15 > 0:28:18including waiting for nesting bats to leave the premises
0:28:18 > 0:28:22and getting cement brought to the site by pipeline.
0:28:22 > 0:28:23And that's not all.
0:28:23 > 0:28:26We had to have three surveys.
0:28:26 > 0:28:31It took nearly 14 months and that cost us a lot of money.
0:28:31 > 0:28:34We had to liaise with the Environment Agency,
0:28:34 > 0:28:38then get permission from British Waterways.
0:28:38 > 0:28:42Then we had an ecological survey. We had a tree survey.
0:28:42 > 0:28:46Then we had a flood-risk assessment, a soil test.
0:28:46 > 0:28:50So all sorts of statutory regulations we had to meet.
0:28:50 > 0:28:52These are all things to bear in mind
0:28:52 > 0:28:55if you're considering buying a house in need of work
0:28:55 > 0:28:58on a lockside location.
0:28:58 > 0:29:00The list of regulations that must be met is long
0:29:00 > 0:29:04and you should be aware of this before plunging in.
0:29:04 > 0:29:06You also need a good dose of patience.
0:29:06 > 0:29:09Also worth keeping in mind is that if your property is isolated,
0:29:09 > 0:29:11security is key.
0:29:11 > 0:29:14Because of the unique location of this house,
0:29:14 > 0:29:17as we don't have any neighbours,
0:29:17 > 0:29:22we thought it's important that we have a good CCTV camera
0:29:22 > 0:29:24covering all the sides of the house.
0:29:26 > 0:29:29Ty and his wife have waited and worked for two years
0:29:29 > 0:29:30to get this place right for them
0:29:30 > 0:29:34and plan to move in as soon as they've sold their current property.
0:29:35 > 0:29:38Their original budget for the work was £50,000
0:29:38 > 0:29:42but with everything they've done, it ended up costing more.
0:29:42 > 0:29:44Just under 100,000.
0:29:44 > 0:29:49Over budget perhaps, but they did build a much larger extension
0:29:49 > 0:29:50than originally intended
0:29:50 > 0:29:53and, yes, they've still got plans to buy a barge
0:29:53 > 0:29:55for their mooring for extra guest rooms.
0:29:59 > 0:30:03We invited two local estate agents to the lock house
0:30:03 > 0:30:05to hear their opinions on the place.
0:30:06 > 0:30:09Very impressed. Much bigger than I anticipated.
0:30:09 > 0:30:12The extension really does transform the house
0:30:12 > 0:30:15and the roof terrace is another feature I hadn't bargained for,
0:30:15 > 0:30:19so quite surprised, pleasantly surprised, I would say, yeah.
0:30:19 > 0:30:23First impressions - stunning location, it's a complete one-off
0:30:23 > 0:30:26and there's nothing else like this in the area
0:30:26 > 0:30:28and the owners have done a fantastic job
0:30:28 > 0:30:31of refurbishing and extending the house.
0:30:31 > 0:30:34So whilst the renovation may not have been plain sailing,
0:30:34 > 0:30:37the agents are agreed that this really is a special place.
0:30:37 > 0:30:40It's perfect for Ty and his wife to retire to.
0:30:40 > 0:30:44They purchased the property for 271,000
0:30:44 > 0:30:47and spent around £100,000 on the renovations,
0:30:47 > 0:30:51making their total outlay 371,000.
0:30:51 > 0:30:54If they did an about-turn and decided to sell,
0:30:54 > 0:30:56what could it be worth?
0:30:56 > 0:31:02I would expect this house to achieve in the region of £400-425,000.
0:31:02 > 0:31:05I would anticipate an asking price of just under £500,000
0:31:05 > 0:31:09and for it to get around that sort of figure for the right buyer,
0:31:09 > 0:31:11who wants this kind of lifestyle.
0:31:11 > 0:31:14I think it's very good, very good.
0:31:14 > 0:31:17But the fact is that
0:31:17 > 0:31:21I wanted to keep this place better than we found it
0:31:21 > 0:31:24and that's the satisfaction, basically.
0:31:24 > 0:31:29Satisfying indeed and those somewhat wide-ranging valuations
0:31:29 > 0:31:31would see Ty coming up roses,
0:31:31 > 0:31:37with a potential pre-tax profit of between £29,000 and £129,000.
0:31:37 > 0:31:40But Ty and his wife have no intention of selling.
0:31:40 > 0:31:43All their patience and hard work has paid off
0:31:43 > 0:31:47and it sounds like they have truly found the key to their future happiness.
0:31:47 > 0:31:49I think the peace and tranquillity
0:31:49 > 0:31:54and walking by the towpath and living here
0:31:54 > 0:31:56with a lot of space
0:31:56 > 0:32:01and I think it's enhanced my life, at least.
0:32:10 > 0:32:13I'm in the town of Blackley, which forms part of Greater Manchester.
0:32:16 > 0:32:18If you're looking at investing in an area,
0:32:18 > 0:32:23it's good to choose somewhere where lots of investment has been put in by other people,
0:32:23 > 0:32:28in this case, Higher Blackley, where the council have spent £46 million in recent times,
0:32:28 > 0:32:31improving the housing stock and the environment,
0:32:31 > 0:32:34planting trees, improving gates and parking and things like that.
0:32:34 > 0:32:37So that's a fantastic start for this property.
0:32:37 > 0:32:40It's a three-bed, Victorian end of terrace.
0:32:40 > 0:32:43It had a guide price of £48,000. Let's take a look inside.
0:32:45 > 0:32:47Points for the area and a promising start,
0:32:47 > 0:32:52with the auction catalogue stating that the house is double glazed and has central heating.
0:32:52 > 0:32:54It looks pretty tidy from the outside.
0:32:54 > 0:32:57Let's hope the inside follows suit.
0:32:58 > 0:33:00So what have we got?
0:33:00 > 0:33:03Oh, nice high ceilings. They're absolutely lovely
0:33:03 > 0:33:05and even some of the original coving.
0:33:05 > 0:33:09Most of the walls don't look too bad but what is that?
0:33:09 > 0:33:12I don't like to see any discolouration like that
0:33:12 > 0:33:13on the plaster.
0:33:13 > 0:33:15Obviously, some damp issues
0:33:15 > 0:33:20and you never know how much damage has been caused to the floorboards and the joists.
0:33:20 > 0:33:21Let's see if it gets any better.
0:33:21 > 0:33:26# So I thought I'd get a little messy... #
0:33:26 > 0:33:29So, a bit of a messy start
0:33:29 > 0:33:31and past the stairs, there's a second reception room.
0:33:31 > 0:33:36It's slightly less stripped back but could do with redecoration.
0:33:36 > 0:33:41So through to the kitchen. Nice grey-tiled floor. We like that.
0:33:41 > 0:33:44The room itself, not a bad size and lots of light coming in
0:33:44 > 0:33:47but it is going to end up just being a shell
0:33:47 > 0:33:52because the units want ripping out and totally replacing.
0:33:52 > 0:33:56And you're going to have to do something about all this Artex.
0:33:56 > 0:34:01It's like walking into the insides of a fluffed-up wedding cake or something.
0:34:01 > 0:34:03It's completely bonkers.
0:34:03 > 0:34:06So how do you get rid of it? Well, here's some DIY tips.
0:34:06 > 0:34:09You can potentially steam it off with lots of effort.
0:34:09 > 0:34:13There are proprietary things you can paint on it to remove it.
0:34:13 > 0:34:17The simplest thing is probably just to plaster over the top of it.
0:34:17 > 0:34:21Whatever you do, though, if it's old Artex, over 30 years old,
0:34:21 > 0:34:23it may well contain asbestos,
0:34:23 > 0:34:25so what you mustn't do is sand it or break it.
0:34:25 > 0:34:28Either way, it's got to go.
0:34:28 > 0:34:33# It's a nice day for a white wedding... #
0:34:33 > 0:34:36If you want to marry this property up to modern tastes,
0:34:36 > 0:34:38smooth walls and ceilings are the way to go.
0:34:38 > 0:34:40They'll be needed throughout,
0:34:40 > 0:34:43including in the three good-sized bedrooms.
0:34:43 > 0:34:46I'm not really a fan of Artex.
0:34:46 > 0:34:49The bathroom's a tad small but overall, for a terraced property,
0:34:49 > 0:34:51I'm impressed with the size.
0:34:51 > 0:34:54And that matters - believe me!
0:34:54 > 0:34:58# It's a nice day to start again. #
0:34:58 > 0:35:03Now the property is an end of terrace, which has lots of advantages.
0:35:03 > 0:35:06For a start, you get an extra entrance at the side.
0:35:06 > 0:35:10You've got no neighbour on this side, so it halves the chance of having noisy neighbours
0:35:10 > 0:35:15and you've got extra windows to let more light in, so lots of pros.
0:35:15 > 0:35:19The only negatives are that you might have people hanging around here,
0:35:19 > 0:35:22people walking past or kids playing ball games against this wall,
0:35:22 > 0:35:26but overall, the pros definitely outweigh the cons.
0:35:27 > 0:35:30But does a local estate agent agree?
0:35:31 > 0:35:34The property is in need of renovation.
0:35:34 > 0:35:38It's a good size, nice high ceilings, good-sized kitchen
0:35:38 > 0:35:42and I think with a little bit of work it should be a very nice family home.
0:35:42 > 0:35:45And if that was done, what could the potential value be?
0:35:47 > 0:35:49The market's a little bit slow at the moment
0:35:49 > 0:35:52but at the right price the property should sell.
0:35:52 > 0:35:55I'd value the property at between £70-£75,000.
0:35:56 > 0:36:00Perhaps this would be more suitable for the rental market?
0:36:00 > 0:36:03If it was my property, I would put it for rent
0:36:03 > 0:36:07and then wait for the market to pick up and then possibly sell it.
0:36:07 > 0:36:08I'd value this property for rent
0:36:08 > 0:36:12at between £450 and £475 per calendar month.
0:36:14 > 0:36:18Well, there is a bit of money needing to be spent on this place -
0:36:18 > 0:36:21a new kitchen, bathroom, and that damp issue needs to be addressed.
0:36:21 > 0:36:25But spend a bit of money and this could be a great little property.
0:36:25 > 0:36:28Let's see who agreed when it went under the hammer.
0:36:31 > 0:36:34Lot 37. What's this one worth today?
0:36:34 > 0:36:36£40,000? I'm away. 40 bid.
0:36:36 > 0:36:3840,000 I have. Do I see 42?
0:36:38 > 0:36:4240 I have, 42 I will take. 42 bid.
0:36:43 > 0:36:4742 I'm at. Do I see 44? At 44,000. 48?
0:36:47 > 0:36:5046. OK. At 46,000, then.
0:36:50 > 0:36:5448 anywhere? At 48. Do I see 50?
0:36:54 > 0:36:57At £50,000. 50 I'm bid. Do I see 51?
0:36:57 > 0:37:0052, anywhere? At 52. 53?
0:37:00 > 0:37:02At 53,000. Are we all done?
0:37:02 > 0:37:06I'll take a half. At 53 and a half. 53,500. 54?
0:37:06 > 0:37:0854 and a half at the back. 55, may I say?
0:37:08 > 0:37:1355,000. At 55. At 55,000. Are we all done?
0:37:13 > 0:37:15At 55,000 for the first time.
0:37:15 > 0:37:18Second time. Third and final time.
0:37:18 > 0:37:22At £55,000, it's yours, sir, seated. Not a bad price.
0:37:22 > 0:37:29That successful bid of 55,000 was made by property developing husband and wife team Hazel and Andy.
0:37:29 > 0:37:33# So happy together... #
0:37:34 > 0:37:36- Hazel, Andy, great to meet you both. - And you.
0:37:36 > 0:37:40- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:37:40 > 0:37:42It was a fantastic opportunity.
0:37:42 > 0:37:46Lovely area. Great rental property. Another one to add to our portfolio.
0:37:46 > 0:37:48Ooh, portfolio. Tell me more.
0:37:48 > 0:37:52Well, portfolio - we've currently got three? Four?
0:37:52 > 0:37:55- This is our fourth one. - You don't know?!
0:37:55 > 0:37:57- We bought another one... - You don't know?!
0:37:57 > 0:38:00Is it three, is it four, is it ten?
0:38:00 > 0:38:02We bought a fifth one the week after this one,
0:38:02 > 0:38:04so we'll be up to five.
0:38:04 > 0:38:08# One, two, three, four Tell me that you love me more... #
0:38:08 > 0:38:12Let's hope their maths is a bit better when it comes to budgets
0:38:12 > 0:38:17but just to clarify, Hazel and Andy have previously renovated three properties,
0:38:17 > 0:38:20which they now rent out.
0:38:20 > 0:38:22This terraced house was their fourth purchase
0:38:22 > 0:38:24and they bought a fifth around the same time,
0:38:24 > 0:38:28so they're taking on a double whammy by renovating both properties.
0:38:30 > 0:38:34Good going for a couple who have only been playing the property developing game for two years,
0:38:34 > 0:38:36since giving up their previous jobs.
0:38:36 > 0:38:41- I was in IT and Hazel was a photographer.- Fantastic.
0:38:41 > 0:38:44- What kind of photography? - Portraits, mostly.
0:38:44 > 0:38:48- Studio work, lots of kiddies. - Right. And dogs and...- Yeah.
0:38:48 > 0:38:52Everything. And grandmas and things. Yeah, it was all good fun.
0:38:52 > 0:38:55So both of you have, what, given up your jobs?
0:38:55 > 0:38:59We were living down south. I'm from up north, round the corner from here.
0:38:59 > 0:39:02And a mid-life crisis, so we decided to move up north,
0:39:02 > 0:39:04sell my business that we had
0:39:04 > 0:39:07and we moved up and got into property,
0:39:07 > 0:39:09which has always been a passion of mine.
0:39:09 > 0:39:13- It's my thing, really. - Mostly induced by you.
0:39:13 > 0:39:16- By me?- It's all your fault. - My fault? Oh, OK.
0:39:16 > 0:39:19I was about to say, "What created your mid-life crisis?"
0:39:19 > 0:39:24- I've never been accused of bringing on a mid-life crisis.- It's watching you every morning, you and Lucy.
0:39:24 > 0:39:28It's something I've always wanted to get into. It's your fault.
0:39:28 > 0:39:32- Were you consulted on this, Andy? - I was quite happy to join in.
0:39:32 > 0:39:36It's a great buzz doing it
0:39:36 > 0:39:38and then when you walk out the door
0:39:38 > 0:39:42- and you look back at what you've done, it's quite nice.- Yeah.
0:39:42 > 0:39:44And having given up the jobs you were doing
0:39:44 > 0:39:46and having taken on this, how do you feel?
0:39:46 > 0:39:49It's a nice lifestyle, actually.
0:39:49 > 0:39:53We just had six weeks where we had nothing to do, no houses.
0:39:53 > 0:39:57All of a sudden we've got two now, so we've got six months of work.
0:39:57 > 0:39:59What about the timing you've picked to do it?
0:39:59 > 0:40:03- It's interesting times in the property world.- Absolutely.
0:40:03 > 0:40:05It's a brilliant time to buy
0:40:05 > 0:40:09and our plan is probably to rent them for ten years
0:40:09 > 0:40:12- and then sell to retire, hopefully. - Right.
0:40:12 > 0:40:15- And so you're very positive about the property market?- Yes.
0:40:15 > 0:40:18- It's the right time for us. - Absolutely.
0:40:18 > 0:40:20It's the right time to do what we're doing.
0:40:21 > 0:40:27So in the last two years, Hazel and Andy have been building up an impressive rental portfolio.
0:40:27 > 0:40:32The plan is to hold on to their houses, letting them out for at least ten years.
0:40:32 > 0:40:36By then, they're hoping the property market will have improved sufficiently
0:40:36 > 0:40:39that they can sell them, releasing enough capital
0:40:39 > 0:40:42for them to retire on comfortably.
0:40:42 > 0:40:45Sounds like a great plan to me.
0:40:45 > 0:40:49But there's some work to do here first.
0:40:49 > 0:40:51So what are you going to do to sort it out?
0:40:51 > 0:40:55Well, Andy is going to... No. We're going to sort out the damp.
0:40:55 > 0:40:57Somebody's lined up for that.
0:40:57 > 0:41:02New kitchen, new... Artex of ceilings, removal of.
0:41:02 > 0:41:04Plaster everywhere. Skim it over.
0:41:04 > 0:41:06New windows - some new windows.
0:41:06 > 0:41:10Radiators, cuddly toy - everything, really, you know.
0:41:10 > 0:41:12New flooring.
0:41:12 > 0:41:17The bathroom, we don't know whether to enlarge that or leave it as it is.
0:41:17 > 0:41:21It's a bit small, so we may break into the single bedroom, we may not.
0:41:21 > 0:41:24- We're still umming and ahing about that.- Right.
0:41:24 > 0:41:26And what's the budget?
0:41:26 > 0:41:31- Budget. As we think right now, it's about 13 to 15.- 13 to 15, yeah.
0:41:31 > 0:41:35- With you doing how much of the work? - Almost all of it,
0:41:35 > 0:41:40- except plastering, damp-proofing - the rest of it is us.- Yeah.
0:41:40 > 0:41:42- And do you work on it together? - Yeah.
0:41:42 > 0:41:46We tend to go into separate rooms quite often, these days, don't we?
0:41:46 > 0:41:50We have different ideas sometimes, so we will work in separate rooms,
0:41:50 > 0:41:52but generally we work well together.
0:41:52 > 0:41:55What jobs do you both take on or do you share everything?
0:41:55 > 0:41:58- Everything. - Hazel's a better painter than me.
0:41:58 > 0:42:01That's probably the bit I like the least.
0:42:01 > 0:42:04- I don't think you've ever painted anything.- I have a bit.
0:42:04 > 0:42:08I do the tiling and the plastering. You do the woodwork, don't you?
0:42:08 > 0:42:13- I do the dirty stuff, I think. - You get your hands dirty.- Yeah.
0:42:13 > 0:42:17And any of your expertise from your photography time?
0:42:17 > 0:42:20Well, you know, I try to put something artistic in
0:42:20 > 0:42:22but he stops me - it's all magnolia now.
0:42:22 > 0:42:25Sometimes. You never know what's round the corner.
0:42:25 > 0:42:27I might be able to use my talents sometime.
0:42:27 > 0:42:30So what's the timescale for sorting it?
0:42:30 > 0:42:34About three to four months. We've got this second one to get going as well.
0:42:34 > 0:42:36So about three to four months.
0:42:36 > 0:42:40I look forward to that. And congratulations. Good luck.
0:42:40 > 0:42:43- I look forward to seeing how you get on.- Thanks very much.
0:42:44 > 0:42:47Well, Hazel and Andy made a big leap,
0:42:47 > 0:42:50giving up their jobs and lives in the south
0:42:50 > 0:42:53and moving north to become property developers
0:42:53 > 0:42:55but it does seem to be going well so far.
0:42:55 > 0:42:58However, taking on two properties at the same time
0:42:58 > 0:43:00is a challenge for anybody.
0:43:00 > 0:43:03How are they going to get on? Find out later in the show.
0:43:06 > 0:43:10Well, doing up a property always seems to take longer than you think.
0:43:10 > 0:43:13There are all sorts of reasons why delays can happen.
0:43:13 > 0:43:16Have they stood still or have they raced ahead?
0:43:16 > 0:43:17Let's go back and find out.
0:43:19 > 0:43:21We go back to Plaistow now,
0:43:21 > 0:43:24where entrepreneur and experienced property developer Sidney purchased
0:43:24 > 0:43:29this two-bedroom mid-terrace at an auction for 175,000.
0:43:30 > 0:43:33But this house had been burnt, quite literally,
0:43:33 > 0:43:38so it was going to take more than a lick of paint to bring it back to life.
0:43:38 > 0:43:42But local lad Sidney wasn't fazed by the fire damage.
0:43:42 > 0:43:46- Did the fire damage not put you off? - Not really. It was kind of cosmetic.
0:43:46 > 0:43:48No structural damage.
0:43:48 > 0:43:51- So did you get a structural survey before the auction?- Yes, yes.
0:43:51 > 0:43:56- So you could read through that and you had the safety net of knowing there was nothing wrong with it.- Yes.
0:43:56 > 0:44:00So he did his homework before the purchase
0:44:00 > 0:44:04but how did he do after? We've come back three months later
0:44:04 > 0:44:06to see if his plans have been brought to life.
0:44:11 > 0:44:13The fire damage was so bad upstairs
0:44:13 > 0:44:17that the only room we could view first time round was the bathroom.
0:44:17 > 0:44:19That has now been turned into an en-suite bedroom.
0:44:24 > 0:44:27The two original bedrooms have been reinstated
0:44:27 > 0:44:32and Sidney even managed to squeeze an additional loo into one of them.
0:44:32 > 0:44:36So the family bathroom must be downstairs - but where?
0:44:36 > 0:44:40What was one large living space has now been split into two,
0:44:40 > 0:44:42creating a dining room and living room,
0:44:42 > 0:44:46which is currently set up as an additional bedroom.
0:44:46 > 0:44:49To the rear of the property and not part of the original plan
0:44:49 > 0:44:51is an extension.
0:44:51 > 0:44:53This allows for the small kitchen to be extended
0:44:53 > 0:44:57and the family bathroom, which leads off it, to be a decent size.
0:45:01 > 0:45:05We have actually had an extension to the back.
0:45:05 > 0:45:07Because this used to be the back wall.
0:45:07 > 0:45:09We have a family bathroom back there.
0:45:09 > 0:45:12And then just changed the layout of the kitchen.
0:45:12 > 0:45:14It used to be like a U-shaped kitchen.
0:45:14 > 0:45:16Now we've put units on either side of it
0:45:16 > 0:45:20and the layout of the kitchen makes it much bigger.
0:45:20 > 0:45:23And I think the extension has added value to the property
0:45:23 > 0:45:26and also made it a lot more lettable.
0:45:29 > 0:45:34So did adding extra space mean more money and more problems?
0:45:35 > 0:45:37The main problem we had with the extension was
0:45:37 > 0:45:40during the groundworks, the foundation bit of it,
0:45:40 > 0:45:44we discovered a lot of the drainage was not what we were expecting.
0:45:44 > 0:45:48So that delayed us a bit and it cost a considerable amount of money more
0:45:48 > 0:45:50than we budgeted for it.
0:45:51 > 0:45:53Sidney aimed to finish in six weeks
0:45:53 > 0:45:56but at 12 weeks, the work's nearly complete,
0:45:56 > 0:46:00apart from some drainage issues that are still being addressed.
0:46:00 > 0:46:03His original budget was 15-20k.
0:46:03 > 0:46:07We ended up spending £34,000.
0:46:07 > 0:46:10About 16,000 of that was the extension.
0:46:10 > 0:46:13And then every other thing came pretty much in to budget.
0:46:13 > 0:46:15It's been three months from start to finish,
0:46:15 > 0:46:17a bit longer than we anticipated
0:46:17 > 0:46:19but you can never plan these things.
0:46:21 > 0:46:24It's good to see a developer this unflappable.
0:46:24 > 0:46:27Presumably he was keeping a close eye on the renovation
0:46:27 > 0:46:29as it was being done.
0:46:29 > 0:46:33I have to be honest, I was away in Japan during most of the project.
0:46:33 > 0:46:36I was away for a month and my builder, sort of...
0:46:36 > 0:46:40We stayed in touch by Skype and phone
0:46:40 > 0:46:43and he sort of did it all when I was away.
0:46:43 > 0:46:48It's great that Sidney was able to leave this place in safe hands while he was away.
0:46:48 > 0:46:50If you plan to do a renovation,
0:46:50 > 0:46:53getting people you trust to do the work is key
0:46:53 > 0:46:55to getting it right with minimal stress.
0:46:55 > 0:46:59With a property like this, you don't need to let the damage put you off,
0:46:59 > 0:47:04particularly if you do as Sidney did and get a structural survey first.
0:47:04 > 0:47:08Right, here we had most of the cosmetic smoke damage.
0:47:08 > 0:47:10The smoke damage did look at lot worse than it was
0:47:10 > 0:47:12because everything was blackened.
0:47:12 > 0:47:15Most of the electrical appliances melted from the heat.
0:47:15 > 0:47:18I'm sure that put a lot of people off at the auction
0:47:18 > 0:47:20but having surveyed it with a surveyor,
0:47:20 > 0:47:24we sort of discovered that it was mainly cosmetic
0:47:24 > 0:47:28and most of the work that had to be done was really the plaster,
0:47:28 > 0:47:31which was old and flaking, so we had to remove the plaster
0:47:31 > 0:47:34and then replaster and reskim and redecorate.
0:47:34 > 0:47:38The benefit of having to rip everything out and start again
0:47:38 > 0:47:41is that this house feels like a brand-new home.
0:47:46 > 0:47:51We asked two local estate agents to cast their expert eyes over it.
0:47:54 > 0:47:57I'm very impressed with what's been done at the property.
0:47:57 > 0:48:00When I came previously, I didn't even go upstairs
0:48:00 > 0:48:03because of the problems that were up there.
0:48:03 > 0:48:06I'm very impressed with the standard that it's been done to
0:48:06 > 0:48:09and how it's turned out with the extension.
0:48:09 > 0:48:12I like the use of the space, especially with the extension.
0:48:12 > 0:48:15It allows you to optimise the bedroom space upstairs.
0:48:15 > 0:48:18I think where they've cut in with the en-suite
0:48:18 > 0:48:21and the WC upstairs, as well,
0:48:21 > 0:48:25takes away the fact that the bathroom is now on the ground floor.
0:48:25 > 0:48:29With Sidney purchasing the property for 175,000
0:48:29 > 0:48:32and spending £34,000 on the work,
0:48:32 > 0:48:35his total outlay is £209,000.
0:48:35 > 0:48:39He already has tenants in and they're paying £1,300 a month.
0:48:39 > 0:48:44Thanks to that extension, this is £200 more than originally agreed
0:48:44 > 0:48:48and gives him a rental yield of around 7.5%.
0:48:50 > 0:48:53However, if he were to consider selling...
0:48:53 > 0:49:00I would put this property on the market for £240,000.
0:49:00 > 0:49:03I would put it on the market for £275,000
0:49:03 > 0:49:06and expect to achieve a figure very close to that.
0:49:06 > 0:49:10Well, I think more the 240,000 mark, yes,
0:49:10 > 0:49:11that's what I had in mind.
0:49:11 > 0:49:15Looking at other properties in the area, I think 240 is reasonable, yes.
0:49:15 > 0:49:19But if I can achieve 275, that's even better.
0:49:19 > 0:49:23With those prices, the property could generate a pre-tax profit
0:49:23 > 0:49:26of between 31,000 and 66,000, minus expenses.
0:49:26 > 0:49:30But with tenants in and Sidney happy with the finished product,
0:49:30 > 0:49:33it doesn't sound like selling is on the horizon.
0:49:34 > 0:49:37No, I don't think this is the right market to sell.
0:49:37 > 0:49:41I'm going to keep hold of it. I'm not a seller, I'm a keeper.
0:49:44 > 0:49:47Now we're returning to Higher Blackley in Greater Manchester.
0:49:47 > 0:49:51Here, property developing husband and wife Hazel and Andy
0:49:51 > 0:49:57purchased this three-bedroom end-of-terrace house at auction for £55,000.
0:49:57 > 0:50:01They claimed that they didn't only have themselves to blame for this.
0:50:01 > 0:50:07- It's all your fault.- My fault? - It's watching you every morning, you and Lucy. It's all your fault.
0:50:07 > 0:50:10Sorry about that! So the pressure was on.
0:50:10 > 0:50:14The house needed the damp to be dealt with and some serious redecoration.
0:50:14 > 0:50:16We've come to visit the property-passionate pair
0:50:16 > 0:50:20three months on to see if they've turned this place around.
0:50:24 > 0:50:26Well, it certainly looks like it.
0:50:26 > 0:50:29They've said adios to the Artex, thank goodness,
0:50:29 > 0:50:33and this now looks much more like a modern ideal home from top to bottom.
0:50:33 > 0:50:38The three bedrooms upstairs have all been redecorated in neutral tones
0:50:38 > 0:50:42and the small bathroom looks better with the addition of a new suite.
0:50:43 > 0:50:49Downstairs, both reception rooms have benefited from a much-needed makeover.
0:50:49 > 0:50:51But what about that kitchen?
0:50:52 > 0:50:57It had lots of Artex, so we had to overboard all the walls
0:50:57 > 0:51:00and also the ceiling, and it was all plastered then.
0:51:00 > 0:51:03We also had a major issue with lots of pipework to the boiler
0:51:03 > 0:51:07and we decided to box it in and we boxed in the boiler,
0:51:07 > 0:51:10because that's one of my pet hates, boilers and pipes and things,
0:51:10 > 0:51:12so we got rid of that.
0:51:12 > 0:51:14We then purchased a lovely kitchen
0:51:14 > 0:51:17from a DIY store that was actually closing down.
0:51:17 > 0:51:20So we got a fantastic deal on it.
0:51:20 > 0:51:23We've left a space for a washing machine and a tumble dryer.
0:51:23 > 0:51:25Lots of work surface.
0:51:25 > 0:51:28We had lots of lovely red tiles chosen by Andy.
0:51:28 > 0:51:31Just something to add a bit of a sparkle to the kitchen.
0:51:31 > 0:51:33And here we are, all finished and ready to go.
0:51:35 > 0:51:37And it's certainly a huge improvement.
0:51:37 > 0:51:41Last time we saw it, the garden was messy and overgrown
0:51:41 > 0:51:42but no longer.
0:51:48 > 0:51:51Firstly, we have repainted all the windowsills
0:51:51 > 0:51:54and we've restained the hardwood frames.
0:51:54 > 0:51:57We've repainted all the pipework
0:51:57 > 0:52:01and put up a couple of hanging baskets here.
0:52:01 > 0:52:07We also then went on to jet-wash all of the concrete slab we have here.
0:52:07 > 0:52:12And then over here, we've had four tonne of stones delivered,
0:52:12 > 0:52:14all HIAB-ed in,
0:52:14 > 0:52:18just slice the bottom of the bag and whoosh, it all came zooming out.
0:52:18 > 0:52:20Then we just had to rake it into place.
0:52:20 > 0:52:22And it's perfect for tenants,
0:52:22 > 0:52:26although some people would prefer raking a nice green lawn.
0:52:26 > 0:52:30But the place certainly is looking a lot rosier, both outside and in.
0:52:30 > 0:52:33Hazel and Andy's timescale for completing this project
0:52:33 > 0:52:37was three to four months and they've nearly finished in just three.
0:52:37 > 0:52:40Not surprising, given how much time they've spent here.
0:52:41 > 0:52:4524-7. We might as well have moved in. We were here every day.
0:52:45 > 0:52:47When the builders were first on site,
0:52:47 > 0:52:50we've got another property that we bought a week after this one,
0:52:50 > 0:52:53so we went and started prepping the other property.
0:52:53 > 0:52:57So they were on site for the first three weeks or so, weren't they,
0:52:57 > 0:52:59and then we've been here every day.
0:52:59 > 0:53:02And night and weekend.
0:53:02 > 0:53:04And they weren't the only ones
0:53:04 > 0:53:07who have had a hand in making this place a home.
0:53:07 > 0:53:11The day after you came last time, it was my birthday that weekend,
0:53:11 > 0:53:14so I had a party and it was a stripping party.
0:53:14 > 0:53:18So I got the whole family and friends in with a wallpaper scraper and a steamer
0:53:18 > 0:53:20and let loose, so it was great fun.
0:53:20 > 0:53:23So they came and helped us get it all stripped down,
0:53:23 > 0:53:28stripped out the kitchen and the laminate flooring, so that was good.
0:53:28 > 0:53:31Where was my invite, then?!
0:53:35 > 0:53:38Roping in family and friends can be a great way to save some cash.
0:53:38 > 0:53:40Hazel and Andy's long-term plan is
0:53:40 > 0:53:45to sell the properties they currently rent out in ten years' time to fund their retirement,
0:53:45 > 0:53:48so keeping their eyes on the numbers is vital.
0:53:48 > 0:53:51# You can leave your hat on... #
0:53:51 > 0:53:56Their original budget for the work was between £13-£15,000.
0:53:56 > 0:53:59We've actually come in at nine and a half,
0:53:59 > 0:54:01which is fantastic.
0:54:01 > 0:54:04Plus legals, it will be about £10,500 in total.
0:54:04 > 0:54:09So we're really pleased with that. It's probably one of the best budget ones we've done, really.
0:54:09 > 0:54:14We have a spreadsheet now. As and when we spend stuff, we put that on there.
0:54:14 > 0:54:16We can see which part of the budget it's coming out of,
0:54:16 > 0:54:19which room it was for, all that sort of stuff.
0:54:19 > 0:54:23It just gives you an excellent idea of where you're going.
0:54:23 > 0:54:27Even part-way through the build, you can still see what you're doing.
0:54:28 > 0:54:32With the house looking great and the work done on time and under budget,
0:54:32 > 0:54:36it's time to ask two local property experts for their thoughts.
0:54:37 > 0:54:39I think they've done a fantastic job.
0:54:39 > 0:54:41A massive improvement.
0:54:41 > 0:54:45You know that you're going to move in now without any problems.
0:54:45 > 0:54:47The property is ready to move into.
0:54:47 > 0:54:51It's brand-newly decorated, new carpets, new flooring, new kitchen,
0:54:51 > 0:54:53new bathroom - ready to move into. It's superb.
0:54:53 > 0:54:59Surely that can only mean good news about the potential profit here.
0:54:59 > 0:55:02Many of its neighbours on the market, being two-bedroomed,
0:55:02 > 0:55:05are on the market at around £80,000.
0:55:05 > 0:55:08This one being three-bedroomed, I would expect a little bit more,
0:55:08 > 0:55:10probably £84,000.
0:55:10 > 0:55:14I would put this property on the market for offers over £80,000.
0:55:14 > 0:55:18Hazel and Andy purchased this place for £55,000
0:55:18 > 0:55:21and spent £10,500 on the work and legal fees.
0:55:21 > 0:55:24With that total spend of £65,500,
0:55:24 > 0:55:27they could be looking at a pre-tax profit
0:55:27 > 0:55:33of between £14,500 and £18,500, minus expenses.
0:55:33 > 0:55:37- Yeah.- Not great but to us it doesn't matter right now.
0:55:37 > 0:55:38We've got a ten-year plan.
0:55:38 > 0:55:42Come back in ten years and we'll tell you if we got 85 or...
0:55:42 > 0:55:44More, hopefully, in ten years' time.
0:55:44 > 0:55:47In keeping with their ten-year plan,
0:55:47 > 0:55:50they want to rent this out and have already lined up a tenant.
0:55:52 > 0:55:54What would the experts suggest they charge?
0:55:54 > 0:55:57A nice big three-bed like this in this area
0:55:57 > 0:56:00will go for £575 per calendar month.
0:56:00 > 0:56:06I would estimate its rental value to be £550 to £570 per calendar month.
0:56:06 > 0:56:08That's good. We were thinking close to that.
0:56:08 > 0:56:11We've just reached just over 10%, which is fantastic.
0:56:11 > 0:56:17We normally would go for 8-10%, so, yeah, it's just right for us.
0:56:17 > 0:56:21And any last words of wisdom for budding property developers?
0:56:21 > 0:56:25I'd advise them to do research, check out property prices
0:56:25 > 0:56:27and rental values, etc.
0:56:27 > 0:56:31It's just buying the right property at the right price in the right location every time.
0:56:31 > 0:56:34And hear-hear to all of that.
0:56:37 > 0:56:41We'll have lots more tales of thrills and spills from the auction rooms for you next time.
0:56:41 > 0:56:45- So make sure you keep watching Homes Under The Hammer. - See you.- Goodbye.