Episode 92 Homes Under the Hammer


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Episode 92

Martin Roberts and Lucy Alexander visit a house in Cheshire, a two-bed mid-terrace in Lancashire and a property in Cornwall, and find out who bought them at auction.


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Transcript


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-Hello and welcome to the programme.

-Even in the current property market,

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we still both enjoy buying property.

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We like the idea of getting a good deal,

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but in today's competitive market, it's not always that easy.

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One way you could get a bargain is to buy under the hammer.

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Buying land and property at auction

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is becoming more and more popular these days.

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Millions of pounds' worth of property is sold every month,

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all round the country in auction rooms everywhere.

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Here are the properties we're featuring on today's show.

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In Bredbury, Cheshire, it's all about colour.

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Come in here and find yourself marooned in a sea of plum.

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In Darwin, Lancashire, I may have found my lunch.

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Mushrooms on toast, anybody?

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Look what I've spotted in the corner.

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A collection of fungus.

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And, in Torpoint, Cornwall, there are easy fixes to do.

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That is a change I would make straightaway

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and you totally transform the living space in this house.

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These properties are being sold at auction and we find out who bought them

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

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All done?

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I'm in Bredbury, a Cheshire village on the outskirts of Stockport,

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just six miles from Manchester city centre.

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Bredbury's a really popular, residential area,

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very popular with families and you can see why.

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The property I'm here to see is on this quiet cul-de-sac, which is even better.

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It's this, a 1930s semi-detached.

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It looks a little bit tired and dated from the outside,

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but the good news is the guide price - £90,000.

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Similar properties around here are going for a lot more than that

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so, I think, there could be money to be made on this one.

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I can see straightaway there is potential to extend to the side

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and there would still be room for off-street parking at the front.

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There's also a garage, although by the looks of it

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that's an asbestos roof, so you'd really need to get that checked out.

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Wow!

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I wasn't quite expecting that!

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Yes, a bit of mock-Tudor in a 1930s semi.

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Always looks interesting, so to speak.

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It gives a very cramped feel to the entrance here.

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You've got lots of mock woodwork and ironwork going on.

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It's not really ideal.

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Does it get any better when you come into the lounge?

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No, the theme continues. At least, it's consistent!

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I'm seeing straightaway

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it's a house that would really benefit from some modernisation,

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especially the decoration.

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I don't know how you get rid of this.

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I guess, you would take it off and plaster over the top,

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if you don't like it which, to be fair, it's not most people's taste.

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In terms of the size of the room,

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it's been knocked through at some point.

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I'm thinking there might be some playing around with the layout

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of the kitchen and this room. That's to be thought through.

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But, as a starting point,

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let's try and focus on the space which is good.

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Everything else is a bit... urgh.

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The kitchen definitely needs replacing.

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The units are very old and it's a bit on the small side.

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You could knock through to the living room

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making it all one big, open-plan space.

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Or, if you did extend to the side, it would enlarge the kitchen that way.

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It doesn't look like there will be much room to extend at the back.

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Well, at the rear of the property, not the huge family garden you might have been hoping for.

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It's been flagged stoned for this bit.

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The bit that is terribly overgrown and then this drop-off.

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The good news is, really nice to overlook the woods like that.

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As an additional bonus,

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this is storage which goes underneath the whole of the property.

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It's not a bad space to have, but I would like to see it improved, somewhat.

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# It's a long way down... #

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For a family home, it would definitely be essential to fence securely along the back.

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It really is a long way down to the forest floor.

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So, upstairs, nothing too surprising.

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Small box room there, larger double bedroom at the rear

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and a really nice-sized double bedroom

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at the front benefiting from that bay window.

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Where it all goes a little bit eclectic,

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is in the bathroom.

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Come in here and find yourself marooned in a sea of plum.

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Yes...

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If you've a bathroom like this, please forgive this comment.

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It really needs to go, doesn't it?

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White, please, would improve the room dramatically.

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It may have a plum coloured bathroom, but is it a plum-vestment?

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We asked a local estate agent for his opinion

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on this three-bedroom semi that had an auction guide price of £90,000.

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Every room needs some attention in it...

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New kitchen, new bathroom.

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I would suggest that the property is re-plastered

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and with an inspection we would need to possibly look at the electrics, as well.

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An extension on this property would add a lot of benefit.

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You could possibly get an extra reception room downstairs,

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or, with planning permission,

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you could add another bedroom

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which would be an added value for any families living here.

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What could you earn if you rented this out?

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There is a huge demand for three bedroom properties in this area.

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To rent this property out

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would be very attractive for the rental market.

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And sale value, once renovated?

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On the open market, I would value this property between 130 and £140,000.

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It's a good-sized property in a nice area.

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It really just needs to be modernised

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and brought out of the era it's in into the 21st Century.

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Let's find out who fancied buying it when it went under the hammer.

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OK, Lot 3, a vacant three-bedroomed, semi-detached house,

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guide, £90,000. What's it worth?

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80,000?

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Too high for you, give me 75 and we're away.

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75,000 bid, thank you.

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Your bid, madam. £75,000 I have then.

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Do I see 80?

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80 bid. 80, thank you.

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81, then, keep it going.

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At £80,000... Do I see 81?

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At 81,000...

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Do I see 82 now? 82, I have.

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82,000... It's against you.

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83... OK, at 83,000. 84?

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At 84. 85?

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At 85,000 we're at now. Do I see 86?

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At 86,000. 87, are we all done?

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£87,000...

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87, then for the first time.

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At 87... At 88,000.

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Good job you came in, the hammer was going down.

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The bid's at 88, do you want to come back in? It's going to be sold.

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At £88,000 on my right, for the first time.

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Second time at £88,000...

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Are we all done and dusted at £88,000?

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I don't want to bring the hammer down,

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but there you go.

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Can I have your number, sir. 922. At 88,000... Goodbye.

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It was husband-and-wife Jonathan and Georgina

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who made that successful bid of 88,000.

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Jonathan's a director at an economic development consultancy

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and Georgina's a financial adviser.

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They live nearby in Manchester.

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I met them at the property to find out their plans.

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-Jonathan, Georgina, lovely to meet you.

-Nice to meet you.

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-Congratulations.

-Thanks.

-Thanks.

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Tell me why you wanted to buy this place?

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Basically, we've just been looking for a project to do

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and we thought this was the perfect opportunity.

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We saw it in the catalogue.

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We thought there's probably a bit of money to be made on it.

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It clearly needs work.

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We thought this was probably a good property to start with.

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Is this something for you to live in, do up and sell on, rent out?

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The plan is to do it up and sell it on.

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We've got a bit of a contingency plan, as well.

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-If that doesn't work out, we can move into it.

-Right, OK.

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That's the worst case scenario.

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-We are looking to sell it, really.

-Yes.

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Jonathan and Georgina already have two rental properties,

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but this is the first time buying at auction

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and the first time they've bought to sell.

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It's also their biggest project to date.

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What prompted you to get into property developing?

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It's something that we've been thinking about for quite a while.

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George, used to work in property.

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She used to be an estate agent, so she's got some decent contacts.

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We've just been saving some money up so we had a bit of a deposit

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and we saw this advertised in the auction catalogue.

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-We thought we'd go for it.

-Decided to take the plunge and...

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Right. What do you both do now?

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-I'm a financial adviser.

-Oh, right, that's useful.

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That was handy. Jonathan works for...

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I run an economic development consultancy.

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The house itself, what did you like and dislike about that?

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THEY LAUGH

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It's got a nice setting.

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I like the fact that the back of it looks out over the woods. That's nice.

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The fact it's a cul-de-sac as well.

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That's good if kids are playing out in the street and what have you.

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-The outside looks good.

-The bathroom is a particular bonus as well.

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As soon as you come into the property, its "Oh, God."

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There's clearly a lot of work needs to be done to it.

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-We like a challenge, don't we?

-Yeah.

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As their first major doer-upper, Georgina and Jonathan

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have decided to keep the project as simple as possible.

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They've discounted building an extension because of the time factor

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and because they don't think there would be much additional profit in it.

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So, what are their plans for the place?

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Everything's going to come out down here.

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We're going to re-skim the whole house.

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Knock down the wall between the kitchen and the dining room

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-and then put the wall back up here.

-Yeah.

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Make it like an open-plan kitchen/diner.

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-New bathroom, obviously!

-You're not going to keep that one?

-No!

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A nice shade of maroon.

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Get rid of the garage because that has asbestos on it.

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-We've got to sort out the garden.

-Make the garden into lawn

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and make it more usable for a family.

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Are you going to keep the half-timbered effect? THEY LAUGH

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-Yeah, the mock-Tudor.

-The mock-Tudor, it's nice, isn't it? 1930s, mock-Tudor.

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No, we probably won't keep that!

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It's not exactly our taste.

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I'm sure someone liked it at one point.

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I don't think, for the market we're going for,

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I don't think they'll want that.

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With a healthy budget of around 23,000,

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and the timescale of around three months,

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the couple have lined up builders to do most of the work.

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What are the builders going to do?

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They're going to... Basically, we're getting one contractor

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and they'll project manage it for us.

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We don't have the time, we both work full-time.

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We don't have the time to do that.

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But we'll do the unskilled stuff, taking the carpets up,

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taking the wallpaper off the walls,

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pulling the kitchen apart.

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Once this project's completed, what's the plans then?

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Sell it and do another one. Hopefully make some money!

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As George says, we should make a bit of profit out of this

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and then put that into the next development.

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Congratulations, good luck with it.

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-We look forward to seeing how you get on.

-Cheers.

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Well, will Jonathan and Georgina's plan to do up this place

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and sell it on work out in these tough, financial times

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when it comes to buying and selling property?

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More importantly, will they manage to get rid of all the mock-Tudor,

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all will they be Eliza-beaten(?)

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You can find out, later in the show.

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Just outside Blackburn is the market town of Darwin.

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Formerly, an industrial mill town,

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the buildings reflect its wealthy status in Victorian times.

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Although, it's suffered some decline over the years,

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recent investment has seen an influx of new companies

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and it seems to be on the up.

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Like many towns in Lancashire,

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Darwin was a centre for the cotton and cloth industry

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during the Industrial Revolution.

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One legacy of this industrial past is a wealth of terraced houses,

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built to house the former mill workers.

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I'm here to see one of those little houses today.

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With easy access to the town centre, views across the moors

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and bowling green, today's lot is in a pretty decent spot.

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The guide price for this property is just £28,000.

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Unfortunately, the security shutters on this two-bedroomed mid-terrace

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are more than a little off-putting.

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Let's not judge it on face value.

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I'm going to cross over and take a closer look.

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The house formerly belonged to a housing association.

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The auction catalogue described it as being in poor decorative order

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and it's been vacant for some time.

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So far, from what I've seen, I'd hardly call it pretty.

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Maybe, inside will be better.

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Well, it's deceptively spacious once you come in here.

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A little dark because you have these big, old shutters on the front of the windows.

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Polystyrene tiles... You know, I always harp on about this

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but they've got to come down because they are a fire hazard.

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They don't to the property any justice, anyway.

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As well as this fireplace, it totally dominates the whole room.

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Not to my taste, but you could do a lot with it.

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I think, there's the possibility of a little bit of damp down here.

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It feels rather wet, so get that looked out

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and a rather unusual place to house a meter.

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They've put it into the wall.

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Overall, a really good-sized room.

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Yeah, not bad.

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Tiles and fireplaces aside, I'm quite encouraged,

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but let's hope that damp isn't a sign of things to come.

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It does get a little darker and dingier as you move through the property,

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but it's great news that you've got a large second reception room.

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Kitchen's a little bit on the small side, but it is adequate,

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and because it's tucked away, you could have this space as your dining area.

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You've got central heating in here, once these shutters have come down,

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I know the light will just flood through.

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In fact, this is a really big window area, so quite a bonus, I think.

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Obviously, the whole room is going to need replastering.

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There's obviously been some damage up there,

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though I did suspect earlier there was a damp problem...

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Mushrooms on toast, anybody? Look what I've spotted. Little collection of fungus.

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I think there's potentially a problem up there,

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so some damp coming from the roof, the bathroom, maybe,

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so whoever takes this on, I'd get that checked out.

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It's always worth getting an expert opinion.

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This might be a sign of a bigger problem such as a leaky roof,

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or, more likely in a house like this that's been unoccupied for a while,

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it might just be a case of getting some airflow back in to let it breathe.

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With a little tender loving care,

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the place could easily be brought back to life.

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Let's hope nothing untoward lurks upstairs.

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Now, properties of this era wouldn't have been built with an indoor bathroom.

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From the 1970s onwards, the plumbing was gradually moved inside,

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but often, the bathroom was just tagged on the back downstairs,

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and let's be honest, who is a fan of a downstairs bathroom? Not me.

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So one good thing here is that the bathroom has been installed upstairs.

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Much more desirable, but I think it could do with a total refit.

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Well, the refit and renovation needs to be done throughout,

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with the two bedrooms definitely needing some work.

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But the bare bones of a decent property are here.

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Not much outside space,

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but it's adequate to hang your washing out here.

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My feeling is that this could potentially be a nice little earner as a rental property.

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But what does a local estate agent make of this two-bed terrace

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that was guided at just £28,000?

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It's convenient and it suits a price need,

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it's at the budget end of the market.

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The property needs some modernisation, some TLC.

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I think the biggest issue is the size of the kitchen.

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And other properties in the area, what developers have done quite cleverly

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is to open the second reception room

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into the kitchen to make it a combined dining kitchen,

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with the existing kitchen becoming more of a utility area,

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and that would probably work quite well.

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The rest of the property is straightforward and doesn't need too much alteration.

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So would it be better to sell this place or do it up and let it out?

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The current climate, it's likely that it would favour the rental market.

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That's not to exclude the budget end of the sale market,

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but probably the rental market.

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So rental might be the best option. Let's talk numbers.

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I would normally expect to achieve £375 per calendar month.

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Once properties are refurbished, I would expect it to resell

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at a figure in the region of £60,000-£65,0000.

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A resale value of £65,000 or a rent of £4,500 a year

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on a property that was guided at just £238,000

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sounds like a potential money-maker to me.

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Once these old security shutters are off,

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and light is allowed to flood in,

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I actually think this could be a decent little property.

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And certainly a viable buy-to-let.

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So who wasn't deterred by the darkness?

0:18:510:18:53

Let's head to auction and find out.

0:18:530:18:56

This Darwen terraced house was one of the last lots of the day.

0:18:560:19:00

So it was a quiet auction room preparing to do battle for it.

0:19:000:19:06

I move on now to Lot 116, looking for 20?

0:19:060:19:10

Thank you, 20 I've got.

0:19:100:19:12

21 anywhere?

0:19:120:19:13

Thank you, 21. 22?

0:19:130:19:15

23.

0:19:150:19:16

24 if you want.

0:19:160:19:18

Thank you. 25. 26.

0:19:180:19:22

26, new place.

0:19:220:19:24

27. 28.

0:19:240:19:26

29.

0:19:260:19:28

30,000.

0:19:280:19:29

30 back in, 31.

0:19:290:19:32

32, sir? No? It's with you.

0:19:320:19:34

31 for the first, 31 for the second, 31 for the third and final time...

0:19:340:19:39

-All done.

-BANGS GAVEL

0:19:390:19:41

Sold, £31,000.

0:19:410:19:43

For £31,000, the successful bidder was semi-retired orthodontist Chris.

0:19:430:19:49

He's based over two hours away in Worcestershire,

0:19:490:19:51

and has a small portfolio of mainly commercial properties.

0:19:510:19:55

I wondered what attracted him to this run-down terraced house.

0:19:550:19:59

-Chris, it's wonderful to meet you today, congratulations!

-Thank you very much indeed.

0:19:590:20:03

So, what made you want to buy this property at auction?

0:20:030:20:06

Well, I saw it, and it looks a fantastic area, little parkland and a view over the tower,

0:20:060:20:11

and there's a bowling green, so I thought this should be a good rental.

0:20:110:20:15

Is this the only property you bought in the auction?

0:20:150:20:17

No, I bought two others in Darwen that are slightly better condition,

0:20:170:20:22

and some land in Essex.

0:20:220:20:23

-Wow, so you did go on a job lot that day, didn't you?

-Yes.

0:20:230:20:26

So Chris has been on a bit of a spending spree.

0:20:280:20:31

Residential properties will see a better return than leaving his money in the bank.

0:20:310:20:36

Although he lives a distance away in Worcestershire,

0:20:360:20:39

he bought the house in Darwen because he knows the area.

0:20:390:20:42

His son already owns a house here,

0:20:420:20:44

and his future daughter-in-law's family live here too.

0:20:440:20:48

So, Chris, what do you do?

0:20:480:20:49

Well, I used to be full time in orthodontics, hospital and practice,

0:20:490:20:53

and retired a couple of years back, and just work two days a week.

0:20:530:20:58

And since retiring, I took a tourist guide course,

0:20:580:21:01

and I've got a thing called a Blue Badge,

0:21:010:21:03

which is a national qualification to, really to allow you to tour guide,

0:21:030:21:08

unsuspecting Americans, anywhere in the heart of England.

0:21:080:21:12

Now, you said retired.

0:21:120:21:13

It hardly seems like you're sitting back with your feet up at the moment.

0:21:130:21:17

Not yet. Maybe one day.

0:21:170:21:19

-Perhaps the bowling green over there in a few years' time.

-SHE LAUGHS

0:21:190:21:22

I'll come back in a few years and see you with your bowls!

0:21:220:21:25

Creaking and groaning.

0:21:250:21:26

With Chris's increasingly busy life, it could be a while before the bowling green beckons,

0:21:260:21:33

and with this house, he's got plenty to get his teeth into.

0:21:330:21:36

So, Chris, how do you intend to upgrade this place?

0:21:360:21:39

The ceiling needs either removing or plastering over,

0:21:390:21:43

the walls taken down and skimmed, the floor's fine,

0:21:430:21:46

and the central heating looks as though it's not too bad.

0:21:460:21:50

The front room has got some...

0:21:500:21:51

Those polystyrene tiles, lovely, that need to come off,

0:21:510:21:57

and then to be stripped down and replastered and skimmed.

0:21:570:22:01

Now what about the little mushrooms that we can all see in the corner?

0:22:010:22:04

Aah! Yes, yeah. They, any botanist here would know they're harmless.

0:22:040:22:08

-I can't do a David Bellamy accent, but...

-SHE LAUGHS

0:22:080:22:11

-I'm sure...

-Go on!

0:22:110:22:13

I'm willing to try, they are lovely mushrooms.

0:22:130:22:15

But hopefully they're not causing any problems at all there.

0:22:150:22:18

-Did you get a survey on this property?

-No, I haven't had a full survey.

0:22:180:22:22

Looked around it, it looks pretty sound.

0:22:220:22:24

No great cracks, it's been here since 1890, something like that,

0:22:240:22:29

so I think it'll last me out.

0:22:290:22:31

It's always risky not getting a survey.

0:22:310:22:33

Let's hope this orthodontist

0:22:330:22:35

doesn't discover more to straighten out than expected.

0:22:350:22:39

He's bracing himself to do this in 12 weeks,

0:22:390:22:42

and will need a fairly decent budget.

0:22:420:22:44

How much money are you going to spend on this little house?

0:22:440:22:47

We'd look at probably about £13,000-£14,000.

0:22:470:22:50

-I mean, that's quite a healthy budget.

-That should hopefully be all right.

0:22:500:22:54

-So, are you going to be doing any of the work here?

-No, I don't think so.

0:22:540:22:58

I might do a bit of skivvying, a bit of labouring, but that's about it.

0:22:580:23:02

You really want to keep those extra five days off as your days off!

0:23:020:23:06

-Very, much so, yes!

-Chris, I'm excited to see what it turns out like. Congratulations.

0:23:060:23:10

-Thanks very much indeed.

-Thank you.

-Nice to meet you.

0:23:100:23:13

From fixing teeth to tourist guide to property developer -

0:23:130:23:17

hmm, Chris certainly likes to keep busy.

0:23:170:23:19

And he's supposed to be retired! I don't think so.

0:23:190:23:22

But I do think he's made a wise purchase here.

0:23:220:23:25

If he can get this place fixed up for £13,000, and rent it out,

0:23:250:23:29

well, that could indeed prove to be a solid investment.

0:23:290:23:32

Now, that is offering a yield of around 9 to 10%.

0:23:320:23:35

But of course, there's plenty that can go wrong with property renovating, as we know.

0:23:350:23:40

So will it all go smoothly, or will it be more like pulling teeth?

0:23:400:23:44

You can find out what happens later on in the programme.

0:23:440:23:49

'Coming up, in Cornwall, a closer inspection worries me...'

0:23:490:23:53

Once you start delving deeper into this property, I think it could turn out to be a bit of a money pit.

0:23:530:23:58

'An estate agent is impressed by Chris's renovation in Lancashire,'

0:23:590:24:03

Quite remarkable, really.

0:24:030:24:04

Changed quite an ordinary property into something that's very nice, very modern.

0:24:040:24:10

'But first, have Jonathan and Georgina put paid to the plum?'

0:24:100:24:14

-We've taken out the kitchen and bathroom.

-Yeah.

-That was quite good fun, actually!

-Yeah!

0:24:140:24:19

'Back now to Bredbury in Cheshire,

0:24:220:24:24

'where husband and wife Jonathan and Georgina purchased this three-bedroom Mock Tudor semi for £88,000.'

0:24:240:24:32

'It was their first ever purchase at auction.'

0:24:320:24:36

Just been looking for a project to do, and thought this was the perfect opportunity.

0:24:360:24:41

We saw it in the catalogue, we thought there was probably a little bit of money to be made on it,

0:24:410:24:45

it clearly needs some work, so we thought this was probably a good property to start with.

0:24:450:24:50

'The couple bought the property as an investment.

0:24:530:24:55

'The intention was to refurbish completely, and once finished, put it back on the market.

0:24:550:25:01

'We returned five months later to see if this Mock Tudor semi has been brought into the 21st century.'

0:25:010:25:07

'The property has been transformed.

0:25:170:25:20

'The fake dark oak beams are no longer,

0:25:200:25:22

'the dividing wall between the dining room and living room has been reinstated,

0:25:220:25:27

'and an open plan kitchen/diner has been created at the back of the house.'

0:25:270:25:36

'Gone is the woodchip wallpaper and tired linoleum flooring,

0:25:360:25:39

'replaced by warm, neutral colours, carpets and original floors.'

0:25:390:25:44

'It's a nice touch keeping those original 1930s doors and rejuvenating them.'

0:25:450:25:51

We sort of took most of the rooms back to brick, so we ripped the plaster off.

0:25:520:25:57

-Um...

-Taken out the kitchen and bathroom.

-Yeah.

-That was quite good fun, actually!

-Yeah!

0:25:570:26:02

-THEY LAUGH

-One of the better jobs, wasn't it?

-Yeah.

0:26:020:26:05

We've had it fully rewired throughout, and we've got new central heating.

0:26:050:26:09

-New central heating. Just pretty much everything, really.

-Yeah.

0:26:090:26:13

New skirting boards, um, dipped and stripped the doors.

0:26:130:26:16

-Couple of new windows, new kitchen and bathroom.

-And we've also painted the exterior of the house as well.

0:26:160:26:21

We think it's just freshened it up a little bit.

0:26:210:26:25

The garage was here originally, and that was one of the first jobs I'd done.

0:26:280:26:33

It wasn't in great condition, and it had an asbestos roof,

0:26:330:26:37

so we decided to get that taken down, so...

0:26:370:26:39

It was a relatively quick job to do.

0:26:390:26:42

But we've also done the garden. That was a bit of a nightmare.

0:26:420:26:46

We got four tons of topsoil ordered, and the day that we were moving it down the back,

0:26:460:26:51

it was chucking it down with rain and we had this old rickety wheelbarrow

0:26:510:26:56

which the guy who had the house before left us.

0:26:560:26:59

After the first ton, one of the handles fell off the wheelbarrow,

0:26:590:27:03

so trying to get it down there and into the back was a bit of a nightmare.

0:27:030:27:06

But that was literally the only problem we had doing the house,

0:27:060:27:10

It's been, sort of, a good experience, and we're looking forward to the next one.

0:27:100:27:14

'It had been Jonathan and Georgina's intention to employ professional help

0:27:200:27:24

'in the form of a project manager, as they both work full time.

0:27:240:27:28

'How did that go?'

0:27:280:27:30

We thought that would be easier for us, with us both working full time,

0:27:320:27:37

-we thought, just dealing with one person.

-Mmmm.

0:27:370:27:40

But we had a couple of quotes for that, didn't we?

0:27:400:27:43

Yeah, and it ended up being a lot more expensive than we thought,

0:27:430:27:46

and to be honest, we thought we'd be better off doing it ourselves,

0:27:460:27:49

cos we'd have a bit more control over what was going on.

0:27:490:27:53

'So a job well done. How did they get on keeping to budget?'

0:27:550:28:00

The original budget we said was, sort of, anywhere between 20 and 23,

0:28:020:28:09

but we've spent a little bit more than that, we've spent 24.

0:28:090:28:11

But there was things that we've got done that we hadn't originally.

0:28:110:28:15

-Yeah, there's a couple of things, like the lintels above the windows needed doing...

-Yeah.

0:28:150:28:20

-..and we didn't factor that in, so we've gone a little bit over budget.

-Yeah.

0:28:200:28:24

'Jonathan and Georgina purchased the house at auction for £88,000,

0:28:240:28:30

'and spent a further £24,000 on renovation,

0:28:300:28:33

'giving them an overall outlay of £112,000.

0:28:330:28:37

'We asked two local property experts for their opinions on the result.'

0:28:370:28:41

Well, fantastic, just absolutely great.

0:28:420:28:44

You know, they've done such a good job,

0:28:440:28:47

considering how it was when they bought it, brilliant, wonderful.

0:28:470:28:52

I think the finish of the property has been done really nicely.

0:28:520:28:55

They've thought about what they've done,

0:28:550:28:58

they've put time and effort into it,

0:28:580:29:00

and they've not scrimped on anything to try and save money,

0:29:000:29:03

and it's been well planned.

0:29:030:29:06

'How much could the property be worth if it were sold, now it's been refurbished?'

0:29:060:29:10

I'd like to market the property for £135,000.

0:29:130:29:18

I believe you could put this property on the market for £155,000.

0:29:180:29:23

-I'm really pleased with that.

-Yeah, there's, that's good, isn't it?

-Yeah.

0:29:230:29:26

-Even if we get the lower figure, I'd be happy with that.

-Yeah, we'd be more than happy with that.

-Yeah.

0:29:260:29:32

'On the basis of those valuations,

0:29:350:29:37

'that would give Jonathan and Georgina a pre-tax profit of between £23,000-£43,000

0:29:370:29:42

'before the usual deductions.

0:29:420:29:44

'What could the potential monthly rental income be if the property were rented out?'

0:29:440:29:49

I think if the property went on the rental market,

0:29:510:29:54

I'd be achieving £675 per calendar month.

0:29:540:29:58

I think for the property in the rental market, you'd be looking to achieve £650 per calendar month.

0:29:580:30:03

-That's a good price, isn't it?

-Yeah.

0:30:030:30:05

But we're not looking to rent, we're looking to sell, but it's good to know.

0:30:050:30:09

Yeah, it's nice to know that we'd get a decent amount for it.

0:30:090:30:12

'Jonathan and Georgina have now accepted an offer of £138,000 for the house.

0:30:120:30:18

'So, is it thumbs up for their first auction speculation?'

0:30:180:30:22

It's been a really good process, I think we've learnt a lot through doing it,

0:30:230:30:27

there's been some tricky times, but it's been good, I've enjoyed it.

0:30:270:30:31

This is Torpoint, the gateway to Cornwall, quite literally.

0:30:450:30:49

Plymouth is just 500 yards across the estuary there,

0:30:490:30:52

but just because you're only seven minutes away from Devon,

0:30:520:30:55

don't think the people here aren't proud of their Cornish origins, based around the dockyards.

0:30:550:31:01

Big question is, will I find a property to be proud of?

0:31:010:31:06

'The Torpoint Ferry runs regularly, connecting these two counties,

0:31:060:31:10

'and making this area a very viable commuter option for those working in busy Plymouth.

0:31:100:31:15

'Hopefully you won't have to use that submarine

0:31:150:31:18

if the ferry's out of order.'

0:31:180:31:19

Well, houses with a sea or estuary view are always highly desirable and command higher prices,

0:31:230:31:30

so I'm delighted to say that the property I'm here to see is this -

0:31:300:31:33

it's a four-bed mid-terrace, at the guide price of £145,000.

0:31:330:31:38

And from the exterior, it's as stunning as its outlook.

0:31:380:31:41

'For an auction lot, this property is surprisingly neat and tidy,

0:31:420:31:46

'with attractive paintwork and a lovely little front garden.

0:31:460:31:50

'Let's hope the interior matches the exterior.'

0:31:500:31:53

So what have we got? Well, through the front door.

0:31:530:31:56

Nice you've got this little porch area there, keeps the wind and rain and the cold out.

0:31:560:32:00

Down this corridor and straightaway, the house is a lot longer

0:32:000:32:04

and deeper than it would first appear, which is a good start.

0:32:040:32:08

Then this room...is absolutely sensational, really big,

0:32:080:32:12

lots of space, great bay-fronted window, looking out

0:32:120:32:16

across the estuary, making the most of those views.

0:32:160:32:20

This room, nice size, but straightaway, I'm seeing,

0:32:200:32:23

the decoration doesn't match up with the quality on the outside.

0:32:230:32:28

It's a classic - people paint the outside of the house,

0:32:280:32:31

so it looks good in the photos, when they're trying to sell it.

0:32:310:32:35

Look in the auction catalogue, and you'd think inside was nice as well.

0:32:350:32:40

Classic example of that not being the case.

0:32:400:32:43

'So, don't be fooled by those exterior photos -

0:32:450:32:48

'check the interior, too.'

0:32:480:32:51

# And I started looking for a warning sign... #

0:32:510:32:56

'Because, despite its great size and good views,

0:32:560:32:59

'this is a disappointing start to the property.'

0:32:590:33:03

You see straightaway some of the modifications that you would make.

0:33:030:33:08

Right through to the back, you find the kitchen in a right old state.

0:33:080:33:13

But why on earth isn't the kitchen in this room?

0:33:130:33:17

It would make more sense - it's bigger,

0:33:170:33:20

it's perfect for a decent-sized galley kitchen, and you'd have that,

0:33:200:33:24

then, as your utility area - that I would change straightaway,

0:33:240:33:29

to totally transform the living space in this house.

0:33:290:33:33

'The garden is another area that needs some serious work.

0:33:330:33:38

'And it doesn't get much better upstairs.

0:33:380:33:41

'The rooms themselves are nice enough, though not huge.

0:33:440:33:48

'A bedroom at the back which, in the past,

0:33:480:33:50

'has apparently been used as a woodwork room.

0:33:500:33:53

'One next-door...

0:33:530:33:55

'The bathroom in the middle, with a decent double towards the front.

0:33:570:34:02

'But I've saved the best bit till last.'

0:34:020:34:05

This is the most spectacular of the bedrooms.

0:34:050:34:08

Nice size, with cupboard space, or whatever. However,

0:34:080:34:12

views out onto the estuary there could be better.

0:34:120:34:16

It's got double glazing, but I'd like to see sash windows in here,

0:34:160:34:20

to lift up to get the noise of the seagulls and the smell of the ocean.

0:34:200:34:24

And it looks like there's some rot in the floorboards.

0:34:240:34:28

So, at first glance, it's OK, but delve deeper into this property,

0:34:280:34:32

and I think it could turn out to be a bit of a money pit.

0:34:320:34:36

Mmm.

0:34:360:34:38

'It's never good to see an exterior wall from the inside of a room!

0:34:380:34:42

'That ought to be investigated.

0:34:420:34:45

'The double glazing also needs looking at.

0:34:450:34:48

'It has been poorly fitted and some of the windows don't even open.

0:34:480:34:53

'But, you know, the bones of this place are in good shape.

0:34:530:34:58

'It could be a lovely family home - there's a great vibe here,

0:34:580:35:02

'or is it just the sun and sea air? Time for a second opinion.

0:35:020:35:07

'So, with the house guided at £145,000,

0:35:080:35:11

'we asked a local estate agent what he thought of the place.'

0:35:110:35:16

The location is fantastic, due to the proximity to the water,

0:35:170:35:21

and it's only ten minutes via the ferry to Plymouth city centre.

0:35:210:35:25

'For that £145,000 guide price, this could be a plum buy

0:35:250:35:29

'for any investor.

0:35:290:35:32

'But when its problems are sorted and the interior spruced up,

0:35:320:35:36

'how would the figures stack up?'

0:35:360:35:38

If the work's done well, I'd be looking at £200,000.

0:35:380:35:41

'And the rental figures?'

0:35:410:35:43

I would expect it to rent for at least £750 per calendar month.

0:35:430:35:47

Sadly, the interior doesn't quite live up to the exterior -

0:35:470:35:52

there's a lot of work to do to sort this place out.

0:35:520:35:56

But somebody will love it because of that view, and who can blame them?

0:35:560:36:00

Let's find out what happened when it went under the hammer.

0:36:000:36:04

Lot 67, it's 145,000.

0:36:100:36:13

145 straight in, bang - knock out the competition! 135?

0:36:130:36:18

Not going less than 130, I tell you... I don't have to.

0:36:180:36:21

Thank you. At 130.

0:36:210:36:24

At 132? 132. 134?

0:36:240:36:27

136.

0:36:270:36:29

136 is stood on there. 138.

0:36:290:36:31

140 on my right, I've got. 140.

0:36:310:36:34

At 140... Is there a one somewhere?

0:36:340:36:38

141, got you, at 141. 142.

0:36:380:36:41

142. At 142...

0:36:410:36:44

143. 144. 144...

0:36:440:36:48

145.

0:36:480:36:50

140...five-and-a-half...

0:36:500:36:53

146.

0:36:530:36:55

146...

0:36:550:36:56

At 146. Madam - 146.5.

0:36:560:37:00

147.

0:37:000:37:02

147...and-a-half?

0:37:020:37:06

-SHE MOUTHS

-148 - thank you. 148.

0:37:060:37:10

148. 149. 149...

0:37:100:37:12

-SHE MOUTHS

-150. 150.

0:37:120:37:15

At 150...

0:37:150:37:18

At 150 once,

0:37:180:37:20

at 150 twice, at 150 - second, third and last time,

0:37:200:37:25

all done at 1-5-0 and out.

0:37:250:37:29

150 - madam, miss, yours, well done.

0:37:290:37:32

'Making that successful bid of 150,000 was Wendy.

0:37:320:37:36

'She currently lives in London but is originally from the West Country.

0:37:360:37:41

'Her plan is to return to this part of the world, move into this house,

0:37:410:37:45

'and enjoy the views all day long.

0:37:450:37:47

'I met her in the sunshine to find out more.'

0:37:470:37:50

-Wendy!

-Hi!

-Congratulations!

-Thank you!

0:37:500:37:54

-Well, you can't knock the spot, can you?

-No, it's a lovely place.

0:37:540:37:58

Apart from this, why did you want to buy the house - or was this it?!

0:37:580:38:03

Obviously, the location is fantastic - that was one reason.

0:38:030:38:08

And I've been trying to move to Cornwall for about 2½ years,

0:38:080:38:12

-so this is ideal.

-Why do you want to move here?

0:38:120:38:15

I love the countryside, I like watersports - surfing, windsurfing...

0:38:150:38:20

So, tell me more about what you do?

0:38:200:38:22

I work in health and fitness,

0:38:220:38:24

-I'm a personal trainer and pilates instructor.

-Great.

0:38:240:38:27

-And currently where?

-In the London area at the moment.

0:38:270:38:30

-Why do you want to move back here?

-Well, I just love it.

0:38:300:38:34

Beautiful countryside, love the sea - long-term plans coming to fruition.

0:38:340:38:41

-That's wonderful. You couldn't get much closer, could you?

-No!

0:38:410:38:44

'And on a day like today, who wouldn't want to live here?

0:38:440:38:48

'I can see a great partnership - an out-of-condition property

0:38:480:38:52

'and a fitness instructor - what a perfect match!'

0:38:520:38:56

# Fit as a fiddle, ready for love

0:38:560:39:00

# I could jump over the moon up above... #

0:39:000:39:04

As you can see, it's a bit of a project. It's got enough space -

0:39:040:39:08

I'm running my business from home,

0:39:080:39:12

and in order to get the size, it had to be something in need of doing up.

0:39:120:39:17

The survey has thrown up a few things.

0:39:170:39:20

-That you didn't know about?

-I wouldn't have, without the survey.

0:39:200:39:25

-So you had it done before?

-Yes, just the day before the auction.

0:39:250:39:29

And what needed to be done?

0:39:290:39:31

Erm, quite a few things - roof, damp-proofing,

0:39:310:39:36

plasterwork... Yeah, quite a long list.

0:39:360:39:40

Which bits were a surprise?

0:39:400:39:43

-A bit more work on the roof than I expected.

-It doesn't look too bad...

0:39:430:39:47

Yeah, the front's OK, it's more the little tenement roof at the back.

0:39:470:39:52

And there's some floor issues, some damp problems,

0:39:520:39:56

those kind of things, obviously all the plumbing, rewiring.

0:39:560:40:00

-Mm-hmm.

-It's got a very old kind of boiler in there!

0:40:000:40:04

'It's a good lesson to get a pre-auction survey done.

0:40:040:40:09

'In Wendy's case, discovering those problems mean she held back £10,000

0:40:090:40:14

'from her auction limit, which will go towards the renovation work.'

0:40:140:40:18

-What exactly are you going to do to the house?

-OK, so, first of all,

0:40:180:40:22

clear it all out - going to start with the back yard.

0:40:220:40:25

We can't do anything until that's cleared out.

0:40:250:40:29

It's holding a lot of water in that area.

0:40:290:40:32

Then strip off all the wallpaper, do the re-plastering,

0:40:320:40:36

get the roof done, there's work to be done on the windows,

0:40:360:40:41

and then take it from there, really - probably plumbing next after that.

0:40:410:40:46

One thing I thought was an obvious improvement was to

0:40:460:40:50

-bring the kitchen further into the house.

-Yes, into that middle room.

0:40:500:40:54

-Keeping the open-plan living area as it is?

-I would think so, yes.

0:40:540:40:59

-It's lovely and big.

-Put a wood floor in there - that would be nice.

0:40:590:41:03

-Make the most of the views.

-Absolutely.

0:41:030:41:06

-What about upstairs?

-Probably keep the layout pretty much as it is.

0:41:060:41:11

The smallest bedroom would be a storeroom for my fitness equipment.

0:41:110:41:15

So, not a great deal - the bathroom would more or less stay where it is.

0:41:150:41:19

-But be updated, presumably.

-Yes, obviously, yes.

0:41:190:41:23

I don't think primrose yellow will fit in, in that style!

0:41:230:41:27

-And what timescale have you got?

-Erm...

0:41:270:41:31

To do the major work, three to six months.

0:41:310:41:34

Obviously, I'm still freelancing in London as well,

0:41:340:41:37

so I'll be to-ing and fro-ing a bit, and will need to organise

0:41:370:41:42

all the work - do quite a lot ourselves, with friends and family,

0:41:420:41:46

and get some people in for the more specialist stuff.

0:41:460:41:50

'The house may be a bit tired,

0:41:500:41:53

'but fitness instructor Wendy has a healthy budget of £25,000.

0:41:530:41:57

'If she does get family and friends onboard, it should be enough

0:41:570:42:01

'to see this house transformed from out of puff into a medal winner.'

0:42:010:42:06

-What are you most looking forward to?

-Finishing it!

0:42:060:42:09

You've a great place, and an amazing location,

0:42:090:42:12

-so, congratulations.

-Thank you.

-And good luck with it.

-Thank you.

0:42:120:42:16

Well, fitness instructor Wendy has got a big job on

0:42:160:42:19

to get this place into shape, but with views like that,

0:42:190:42:23

it's going to be worth it - so, will we return to find a healthy house

0:42:230:42:27

or will it still need a workout? Find out later in the show.

0:42:270:42:31

It's been a while now since we last visited those properties.

0:42:340:42:37

There should have been some work done, but you never know.

0:42:370:42:41

All sorts of problems can arise for buyers - let's find out about ours.

0:42:410:42:46

Just outside Blackburn in Lancashire was where I found

0:42:470:42:51

a traditionally-built, stone terrace, two-bedroom house.

0:42:510:42:55

This property may have had fine views out,

0:42:550:42:59

but it was not the prettiest of sights within.

0:42:590:43:02

With security shutters over the windows, damp walls

0:43:020:43:06

and collapsing ceilings, this place had certainly seen better days.

0:43:060:43:11

It was, to say the least, a little down in the mouth.

0:43:110:43:14

Who better to fix it up than semi-retired orthodontist Chris?

0:43:140:43:18

He snapped this property up for just £31,000,

0:43:180:43:21

but being based in Worcester, and still doing part-time orthodontistry

0:43:210:43:25

along with working as a tour guide,

0:43:250:43:28

had he bitten off more than he could chew?

0:43:280:43:31

So, will you be doing any of the work?

0:43:310:43:33

No, I don't think so, maybe a bit of skivvying,

0:43:330:43:36

a bit of labouring, but that's about it.

0:43:360:43:38

You want to keep those extra five days off as your days off!

0:43:380:43:42

Very much so, yes.

0:43:420:43:45

# Today I swear I'm not going anything, nothing at all... #

0:43:450:43:49

So, apart from providing £13,000- £14,000 to a builder to do the work,

0:43:490:43:54

Chris was hoping to be fairly hands-off!

0:43:540:43:58

Four months later, has his hands-off approach paid dividends?

0:43:580:44:03

From the outside, it's certainly improved.

0:44:070:44:10

He got rid of the security shutters, put in new windows and doors

0:44:100:44:14

and gave it a fresh lick of paint, too. And inside...

0:44:140:44:18

The changes we made in this room - the fireplace,

0:44:230:44:26

brick fireplace, has gone, opening it out to make it brighter and cleaner.

0:44:260:44:31

And the awful ceiling - polystyrene tiles -

0:44:330:44:37

that's gone, and a new window,

0:44:370:44:40

and generally, flooring and re-plastering.

0:44:400:44:44

That's a much-improved first impression.

0:44:480:44:51

With wooden flooring laid throughout,

0:44:510:44:54

it flows naturally into the rear reception room.

0:44:540:44:58

There's been a fair bit of change in this room.

0:45:020:45:05

The debate was whether to put the kitchen in here,

0:45:050:45:09

and leave that as a utility room.

0:45:090:45:12

But we decided to leave it out there, because this is a nice-sized room,

0:45:120:45:17

and it makes it two reception rooms rather than a kitchen-diner.

0:45:170:45:21

The other changes made - obviously new window,

0:45:210:45:25

re-plastering, and the floor again.

0:45:250:45:29

There's an alcove there that can be used as storage and various things.

0:45:290:45:34

Chris is planning to rent this house out. As a rental property, I think

0:45:380:45:44

leaving the kitchen where it was was definitely the right decision.

0:45:440:45:49

Upstairs, it's also been a case of making good the existing rooms.

0:45:500:45:55

New plasterwork, decoration, carpets and windows

0:45:580:46:02

in both of the bedrooms.

0:46:020:46:05

The sorry old bathroom has been rejuvenated with new flooring.

0:46:070:46:13

With the back yard tidied up, this house looks ready to rent,

0:46:150:46:19

so, is Chris happy with the end result?

0:46:190:46:22

Really pleased with it. I saw it for the first time yesterday

0:46:220:46:26

decorated - it was only finished last week -

0:46:260:46:30

and so we've only seen it in stages.

0:46:300:46:33

Chris has been in regular contact with his builders throughout,

0:46:340:46:38

so he was across all the problems.

0:46:380:46:42

There was a great big fungus on the floor there.

0:46:420:46:46

There was some damp in the wall -

0:46:460:46:48

possibly a leaking pipe from next-door that we're looking at.

0:46:480:46:52

But nothing major - everything else has gone smoothly.

0:46:520:46:55

Let's hope he gets to the root of that damp soon.

0:46:550:46:59

Generally, this house has worked out really well,

0:46:590:47:03

but it wasn't the only house Chris bought in Darwen at the auction.

0:47:030:47:07

Three in Darwen - one has been let about a month ago,

0:47:100:47:15

tenants settled in and seem very happy -

0:47:150:47:18

it's done nicely like this one.

0:47:180:47:21

The other one's on the market about a week ago,

0:47:210:47:24

and this one's raring to go as soon as the cameras go out.

0:47:240:47:28

All these properties were bought as an investment,

0:47:280:47:32

to get a better return on his savings.

0:47:320:47:35

As they say, you have to speculate to accumulate.

0:47:350:47:38

Having bought this house for £31,000 at auction,

0:47:380:47:42

Chris had set a reasonably healthy budget of £13,000

0:47:420:47:45

to get it up to scratch to rent out.

0:47:450:47:49

It's not quite gone according to budget, but not far over.

0:47:510:47:55

It's ended up at £15,800, which is about 2,000-3,000 over the budget.

0:47:550:48:00

With a £31,000 purchase price

0:48:020:48:05

and his budget of £15,888,

0:48:050:48:08

that's a total outlay just short of 47,000, plus costs and fees.

0:48:080:48:13

So, has this been a solid investment?

0:48:130:48:17

What do two local estate agents think?

0:48:170:48:21

Quite remarkable, really. Changed quite an ordinary property

0:48:210:48:25

into something very nice, modern, contemporary.

0:48:250:48:28

Very fresh-looking, well-presented.

0:48:280:48:30

It's a traditional, mid-row, terraced property,

0:48:300:48:33

but done to a very good standard - the amenities are superb,

0:48:330:48:36

and it's ready for use.

0:48:360:48:38

Although he really bought it as a rental,

0:48:380:48:41

Chris does have nearly £47,000 invested here -

0:48:410:48:45

so, how might it do on resale?

0:48:450:48:47

If it was placed on the market for sale, you would probably place it on

0:48:470:48:52

with an initial asking price of £65,000.

0:48:520:48:55

We would value this property in the region of £70,000.

0:48:550:49:00

Much more than I'd anticipated, with the market being poor.

0:49:000:49:03

So, yeah, great news.

0:49:030:49:05

So, he's nearly doubled the value -

0:49:050:49:08

that would be a potential pre-tax profit, before tax and expenses,

0:49:080:49:13

of between £18,000 and £24,000.

0:49:130:49:15

But this one's more about rental.

0:49:150:49:18

On the rental market, it should achieve a rental

0:49:180:49:21

of around £425 per calendar month.

0:49:210:49:24

On this property, we could achieve about £425 per calendar month.

0:49:240:49:29

I was expecting a lot less - between 350-375.

0:49:290:49:32

But 425 is fantastic.

0:49:320:49:34

He's right - £425 a month IS fantastic.

0:49:340:49:39

That's £5,100 a year, or an impressive 11% yield

0:49:390:49:43

on that £47,000 investment.

0:49:430:49:46

So, he must be pleased at how it's all gone.

0:49:460:49:50

As a development, it's been good, because I haven't had to do anything.

0:49:500:49:55

So, apart from stumping up the money,

0:49:550:49:57

Chris has been able to take a back seat AND make a healthy return.

0:49:570:50:02

# Nothing at all... #

0:50:020:50:05

If only it was always this straightforward!

0:50:050:50:09

Back now to Torpoint in Cornwall, where fitness instructor Wendy

0:50:160:50:20

bought this four-bedroomed, mid-terraced house for £150,000.

0:50:200:50:25

Originally from Devon, she's lived in London for 12 years,

0:50:250:50:29

and was keen to move back to the West Country, to live by the sea.

0:50:290:50:33

But the property needed a lot more work than it might have seemed,

0:50:330:50:38

as a pre-auction survey revealed.

0:50:380:50:41

-What did it say needed to be done?

-Quite a few things.

0:50:410:50:45

Roof, damp-proofing, obviously plasterwork, and, er,

0:50:450:50:49

yeah, quite a long list.

0:50:490:50:52

16 months later, we've returned

0:50:520:50:54

to a less sunny Torpoint than the one we first visited,

0:50:540:50:59

to see if Wendy's managed to whip this old property into shape.

0:50:590:51:03

The renovation is a fair way from being over, but work has been done

0:51:130:51:17

to strip back and re-plaster the living room.

0:51:170:51:21

It's the same story with the rooms at the back.

0:51:210:51:24

Wendy had hoped to be living here by now - why isn't she?

0:51:240:51:29

The front of the house was finished, the new windows were in

0:51:310:51:34

and everything, the roof was done, all re-plastered, etc.

0:51:340:51:38

And then...the only final bit of roof that hadn't been done

0:51:380:51:43

was the bay window roof,

0:51:430:51:44

so we had that done as a separate job.

0:51:440:51:48

But unfortunately, the heat work on the roof, obviously,

0:51:480:51:52

sparked onto a timber and started a fire.

0:51:520:51:56

The front of the house was declared unsafe,

0:51:560:51:59

as major structural joists had been badly damaged,

0:51:590:52:02

adding time to the repair.

0:52:020:52:05

The tough winter had already slowed the refurbishment down.

0:52:050:52:08

The fire slowed things down further,

0:52:080:52:11

as Wendy had to wait for the insurance to be sorted out.

0:52:110:52:15

What other damage did the fire do?

0:52:150:52:17

The damage was fairly localised to the front of the house on two floors.

0:52:170:52:22

Erm, but there was a lot of soot and smoke damage, and obviously,

0:52:220:52:26

that permeates through the whole house,

0:52:260:52:30

so it was all quite black!

0:52:300:52:32

What a huge shame.

0:52:320:52:35

But I'm glad Wendy can still look on the bright side,

0:52:350:52:39

and whilst it's been an undoubted setback,

0:52:390:52:42

structurally, everything is fine now.

0:52:420:52:46

Although it may not look like it superficially,

0:52:490:52:53

a lot of the hard graft has already been done.

0:52:530:52:57

Even the back garden has all been sorted.

0:53:010:53:05

However, given the circumstances, Wendy's plans have now changed.

0:53:070:53:12

Because it took so many months to sort out, I just though, "Really,

0:53:120:53:17

"I need to... By the time I've then refurbished,

0:53:170:53:20

"I'm going to be at the ceiling value for the area,"

0:53:200:53:24

and I'd really lost a little bit of heart on it, to be honest,

0:53:240:53:28

so I thought, "Well, I'll just put the property back on the market,

0:53:280:53:32

"and see what the response is." For anyone coming in now,

0:53:320:53:37

a considerable amount of the work has been done.

0:53:370:53:40

Maybe they'll come in with renewed enthusiasm, energy and so on,

0:53:400:53:45

and just take it, take it to the end.

0:53:450:53:48

That is sad, but with the fire repairs covered by insurance,

0:53:480:53:53

hopefully she's not lost out too much financially.

0:53:530:53:57

How much has the renovation cost?

0:53:570:53:59

I've probably spent about 20,000 in total, yeah.

0:53:590:54:04

The major costs I suppose would be on the roof,

0:54:040:54:07

er, quite a few new windows

0:54:070:54:10

and some building work

0:54:100:54:13

in terms of, sort of, repair of the walls -

0:54:130:54:17

the rear wall had to be tied in to the property,

0:54:170:54:19

because it hasn't been tied in properly,

0:54:190:54:22

and quite a lot of wall repairs in terms of plastering,

0:54:220:54:25

and I don't know if you remember,

0:54:250:54:28

but upstairs there were some holes in one wall,

0:54:280:54:32

some big, major cracking repaired,

0:54:320:54:35

which was more than superficial cracking, and things like that.

0:54:350:54:39

Added to the purchase price of 150,000

0:54:410:54:44

Wendy's spend of £20,000 brings her total outlay to 170,000.

0:54:440:54:50

What do two local estate agents think of it now?

0:54:500:54:55

It's a lovely, period, terraced property,

0:54:550:54:58

in a fantastic waterside location within Torpoint.

0:54:580:55:01

Since the fire damage, the property has had structural works done,

0:55:010:55:06

and it's been cleared out, so it's more of a blank canvas now,

0:55:060:55:10

rather than such a large project.

0:55:100:55:12

With its prime location, what rent could it earn?

0:55:120:55:17

I would put it on the rental market for around £800 per calendar month.

0:55:170:55:22

I would expect it to achieve £750 per calendar month.

0:55:220:55:27

Erm, I would say that's about right - there's not been a lot of change

0:55:270:55:31

in the rental market since I bought it, so it sounds about on target.

0:55:310:55:35

That would give a yield of around 5.5%, but Wendy is selling,

0:55:350:55:39

so what sale price would they estimate?

0:55:390:55:42

In today's market, I would expect the property

0:55:420:55:44

to achieve in the region of £175,000.

0:55:440:55:47

If I was to put it up for sale,

0:55:470:55:49

I would be happy to market it in the region of £190,000.

0:55:490:55:52

You know, there's a big difference between them.

0:55:520:55:56

I think 190, in its current condition, is quite optimistic,

0:55:560:55:59

but somewhere between the two I think is about spot on.

0:55:590:56:03

That would give Wendy a pre-tax profit

0:56:030:56:06

of between £5,000 and £15,000.

0:56:060:56:09

The project has had its challenges - how would she sum it up?

0:56:090:56:13

It's been a big project that I took on. I learned a lot doing it.

0:56:130:56:18

Having the fire - I certainly know a lot more about fire than I did.

0:56:180:56:23

It's an experience, yes!

0:56:230:56:26

Have the challenges she faced made her reconsider her decision

0:56:260:56:30

to relocate to the South-West?

0:56:300:56:32

Absolutely not. I love Cornwall,

0:56:320:56:34

I've wanted to live here for over two years.

0:56:340:56:37

I'm definitely staying in the county.

0:56:370:56:40

In the world of property, there is always something new to learn,

0:56:420:56:46

and we'll have more advice for you next time.

0:56:460:56:49

-Join us then for more Homes Under The Hammer.

-Goodbye.

-Goodbye.

0:56:490:56:52

Subtitles by Red Bee Media Ltd

0:56:580:57:01

Martin Roberts and Lucy Alexander visit a house in Cheshire, a two-bed mid-terrace in Lancashire and a property in Cornwall. All of these properties have been sold at auction. Martin and Lucy find out who bought them, and what they paid when they went under the hammer.