Episode 99 Homes Under the Hammer


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Episode 99

Martin Roberts and Lucy Alexander visit a bungalow in Consett, County Durham; a property in Canterbury, Kent; and a house in Staffordshire.


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The UK auction property market is worth billions of pounds every year.

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Those are big numbers, so don't be put off by that.

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The auctions are a level playing field. They're open to everybody.

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All you need is a bit of cash and some confidence.

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With thousands of lots going under the hammer each year,

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there is such a huge choice at auction.

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Here are what today's bidders decided to buy

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when they put their hands in the air.

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'I find there's more than one way to tackle this bungalow in Consett, County Durham.'

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Two options. It all depends on what your plans are for the property.

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'In Canterbury, Kent, this property got a thumbs up from me as soon as I stepped inside.'

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Wow! What a lovely, sunny shop front!

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'And in Staffordshire,

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'I get to grips with the ups and downs of property development.'

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I always worried I'd end up in the gutter.

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'All the properties went to auction.

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'We'll find out who bought them and what they paid when they went under the hammer.'

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You bought it. Well done.

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# Bird flying high

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# You know how I feel

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# Sun in the sky

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# You know how I feel

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# Oooh, drifting on my... #

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This is Consett in County Durham,

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but it's a very different Consett from that of 100 or even 30 years ago

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because this was a major steel town,

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with the local steel mills employing over 6,000 people

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and, amongst other things, making the steel for Blackpool Tower.

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But when those mills closed in the 1980s,

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it was obviously devastating to the local economy.

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But in recent times, there has been a lot of investment

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and when that happens, the property developers are back.

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# It's a new dawn, it's a new day

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# It's a new life for me

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-# And I'm feeling good.

-#

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'It's just a short stroll from this rolling countryside to the property that was up for auction.

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'But before I even arrived, I had a good feeling about it.'

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The property I'm here to see is in this terrace of former pit bungalows

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built around the 1920s, at the same time as a new pit was sunk locally,

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to house and probably attract workers.

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Compared to some run-down terrace, these would have been a delight.

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They remain very popular even nowadays.

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So what was on offer?

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A three-bedroom bungalow with a guide price of £30,000-£50,000.

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Let's take a look.

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'It's always hard to tell with these terraced bungalows

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'which is the front and which is the back.

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'To sort the mater out, this is the back yard but this is the front door.

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'At the back is the garden and what looks like the front door.

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'So, all clear, then?'

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So, what have we got?

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It's a bit confusing as to which is the main entrance,

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because you've got an entrance on the other side which could be,

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but this is the one I think, practically, you would use more.

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Unfortunately, that leads straight into this part of the property, which is a tiny kitchen

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and that, which is the only bathroom. Not a particularly favourable start.

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But it gets better the further in you go.

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A really nice size room here. I guess this is your living room.

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A big fireplace there. A real fire would be lovely.

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A storage area there and then three bedrooms.

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But just look at the size. Look at the...the space you've got.

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You've got high ceilings, three big bedrooms,

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and it's a very practical house straight away, apart from that bit(!)

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# Backwards all day

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# Hopes are down... #

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'There always has to be some dilemma for us to sink our teeth into.

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'The condition of the bungalow would be plenty to keep you busy.

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'It's tired, dated and has an odd concrete feel to it.

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'In fact, this is probably the first time I've ever seen concrete skirting.

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'It's a very basic space, but I'm assured the build is standard brick construction

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'so you shouldn't have any mortgage issues to worry about.

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'You just need some very springy underlay and good quality carpeting to keep your feet comfy.

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'Now, back to the bathroom dilemma.'

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What about that layout? What are we going to do?

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Well, I guess it comes down to how much you value the bedrooms

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and how much it's going to affect any potential rental on the property.

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You could quite considerably lose one of the bedrooms

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and then move the kitchen into this room, knock through that wall

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to create a really nice kitchen/dining room.

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That would be lovely.

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If you do want to keep the bedrooms, however -

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and it's worth talking to an estate agent if you're renting out

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to find out how much difference that would make to your rental income -

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you could look at creating your extended kitchen there

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and then adding or taking, rather, some space off one of the bedrooms

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to create an internal bathroom.

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Two options. It all depends on what your plans are for the property.

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'Bearing in mind that guide price of £30,000-£50,000,

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'we asked a local estate agent along to hear his thoughts.'

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I think the bungalow has fabulous potential.

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The room sizes are very generous.

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The countryside is a particular draw to people.

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There's possibilities of moving upwards as well as outwards

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and the internal space could be re-jigged to suit your needs.

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'There is space for a loft conversion

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'but the cost of doing it might not be added back on to the resale value.

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'So, for a quick sale, it won't be worth your while,

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'but could be something to think about if you plan to live here and wanted the extra space.

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'What could the rental be here?'

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In good condition, the property would probably rent for

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in the region of £475 per calendar month,

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up to a maximum ceiling of £500 per calendar month.

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'What about a resale value?'

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The property, in its current condition,

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would probably be worth in the region of £55,000.

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When the property was renovated,

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it has the potential to go up to in the region of about £85,000-£90,000.

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'These are valuations for a three-bedroom property.

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'If you turned it into a two-bed, you could lose approximately £10,000 from the resale value

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'and £50 a month off the rental.

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'You'd definitely need to re-jig the bathroom, but in a way that maintains the three bedrooms.'

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I really like this little bungalow. There's lots you could do here.

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And either as a place to live or something to rent out, a really great one to go for.

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Who wouldn't want to buy a property in a place like this?

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

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Moving on to Lot 17, this is a quite deceiving property.

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Three double bedrooms, a terraced bungalow.

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Guided at £35,000-£50,000.

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20? Get me away at 20. Thank you. We're in at 20.

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22. And 24. 26.

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28. And 30. 35. And 40?

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Shake of the head. 40, anywhere?

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40, fresh bidder. 41. 42.

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43?

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42.5, then?

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42.5. 43? 43.5.

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43.5. 44.

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44.5.

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Perhaps 50?

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That's a nice round figure.

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£50,000?

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Yeah, 50. I thought you would.

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51? Shake of the head.

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At £50,000. Do I see £50,500 anywhere?

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£50,500. 51?

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51. 51.5.

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52.

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52? 52.5? A shake of the head.

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At £52,000, with the gentleman standing up at 52.

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At £52,000, then. We're going to sell for the first time.

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At £52,000 for the second. Are you all done at £52,000?

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For the third and final time. Sold! Thank you very much. Well done.

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'That winning bid which secured the bungalow for £52,000 came from Steve and his partner, Gemma.

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'They own and run a rural pub nearby and have another three properties which they rent out,

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'but will they reap the rewards from this, their first ever auction purchase?'

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# You'll forget the sun in his jealous sky

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-# As we walk in fields of gold.

-#

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'I met Steve at the property to hear about their plans.'

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-Steve, good to meet you.

-How are you doing?

-Congratulations.

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Tell me why you wanted to buy this place.

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I'd never been to an auction before.

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We went down, had a look and we were just buying it as an investment, really.

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A house to do up, just to see what we could do with it,

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-because we've bought three previous and it's something a friend told me to get into.

-Oh, really?

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Try and invest for the future, basically.

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And it's gone well since that advice?

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It has. It's just a slow process of trying to build up a portfolio of properties

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and just have them for the future.

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-With the idea of keeping them and renting them out?

-Yeah.

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Did you know this particular area at all?

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I'm from around here.

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I only live two miles away. I've lived here all my life.

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It's a case of buying properties in the area that you know.

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It's easier to keep a check on things.

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-How was the auction?

-It was very intimidating.

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I was quite nervy when I went in because I'd never been to one before.

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We thought we were going to get the property for £43,000

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but a guy in front kept bidding against me,

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so in the end, we got it for £52,000, which is a little over guide price.

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'As Steve experienced at his first auction, the process can be quite nerve-racking.

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'You have to stay in control when you really want a property

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'because the adrenalin can push your maximum bid sky high in a heartbeat.

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'Now it's theirs, what next?'

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The plans are...

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the kitchen/bathroom will be turned into a kitchen.

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Knock the wall out that's adjoining that.

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And probably to put a bathroom in one of the bedrooms

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and make one bedroom smaller. The garden all needs redoing.

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New double-glazing and it looks like the walls need plastering.

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-So it looks like there's quite a bit to do.

-What's the budget?

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The budget started at around £10,000

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but I'm seeing it's going to be close to £15,000.

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What's put it up by 50%?

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The main thing would be digging up the yard.

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You have to dig up the yard and the work for the bathroom -

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knocking down walls, reposition all the doors, et cetera.

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A lot of the properties around here have put in a dormer. Is that something you'd consider?

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Possibly, but not at this moment in time.

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If we were to sell the property, it's something we possibly could to try and add value

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or possibly put a conservatory on the back of the property.

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That's a sensible idea.

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Steve's goal is to turn it around and get it on

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the rental market in two months, ideally.

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So if he wants to hit that deadline, there's little point in getting carried away.

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Steve and one of his friends will do much of the work themselves

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and hire in trades when required.

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What's the long term plan here?

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To sit on it and hopefully buy some more.

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Keep it for 10, 20 years, for the future for my little one.

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Is it a boy or a girl?

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It's a boy. He's 21 months and he's a little devil.

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-So you're building up an inheritance for him?

-It's the way forward

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because there's no point in money in the bank. You may as well invest it.

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-Property seems the way forward.

-Listen, congratulations. Good luck with it.

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-Thank you very much.

-I look forward to seeing how you get on.

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Well, it's great that Steve's building up a future for his son

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from a bit of Consett's industrial past.

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I think this will prove to be a great investment.

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How will he get on moving that bathroom

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and will his budget hold out?

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You can find out later in the show.

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# I passed by the old cathedral

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# As the organ played. #

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Today, I've travelled to the garden of England.

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I'm in the cathedral city of Canterbury, Kent.

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Historical buildings galore, pretty winding medieval lanes

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and loads of shopping opportunities.

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Hey, what's not to like?

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Plus the high-speed rail link whisks you into the capital

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in just over an hour.

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Let's hope the property I'm here to see

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is just as inspiring as its surroundings.

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A two-minute walk from the beautiful cathedral of Canterbury

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and I'm here to see today's auction lot.

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It had a guide price of £150,000 to £160,000.

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I think that's quite modest when you discover, for that price,

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you can get all of this.

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A former hairdresser's and offices upstairs on the first floor.

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Interestingly, the auction catalogue hints at its potential. Excited?

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Well, I am. So, a substantial and attractive property for the money.

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The downside is that it doesn't come with any parking space

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but the upsides are exposed brickwork, sash windows

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and your very own period lamp.

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It's certainly a cut above many hairdressers.

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# Get your hair cut, get your hair cut

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# To be absolutely blunt

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# With your hair cut like a coconut

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# You look as if your head's on back to front. #

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Wow! What a lovely sunny shop front.

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You can obviously see what it used to be,

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because there's mirrors just everywhere,

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but it's really bright in here in a fantastic corner of Canterbury.

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You really are just off the main high street here.

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In really good condition,

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you've got these gorgeous, beautiful sash windows.

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They look fab but they are single-glazed

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and I know for a fact you can really hear the traffic outside.

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You've got another part of the shop area to the back.

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Again, in quite good nick. It looks like it's recently been painted.

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So far, so good.

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# Mirror, mirror on the wall

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# Listen to me, hear my call. #

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There are three good-sized rooms down here,

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a small kitchen and stairs up to the first floor,

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where there are another three rooms.

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This may look like a bedroom but was used as an office.

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This place would be ideal for someone wanting to move

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their business in and start trading right away.

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However, you could also think about making the upstairs into a one-bed flat

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or double up and convert the whole building into two flats

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or one residential property, but for that, you'd need to get

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change of use from commercial to residential and make sure you have

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planning permission before knocking any walls down.

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# You're looking good

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# You're looking good to me. #

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With its dizzying number of options

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and a guide price of 150,000 to 160,000, we wasted no time in inviting

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a local estate agent around to hear his opinion.

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In terms of location,

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we're in the heart of the cathedral city of Canterbury,

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surrounded by some fantastic period buildings.

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We're a three-minute walk from the high street

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with all the shops and pubs Canterbury has to offer.

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I think, given where it is,

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an established residential location in the middle of the town,

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I think you're really going to try and look for

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a couple of big one-bedroom flats or some form of student let.

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Great minds think alike,

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but there is one other way of rejigging the layout

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that could accommodate both the retail and residential properties.

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One of the options is to keep the commercial space downstairs,

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perhaps just hive off the front bit for commercial, and then use

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the upper part and the rear of the ground floor

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for residential accommodation.

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You could easily have a living room and kitchen downstairs,

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two, maybe three bedrooms and a bathroom upstairs.

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That would make quite a good student let in this location.

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How much could that achieve in rental?

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As a student let in this accommodation,

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you're comfortably going to get £300 per calendar month for each lettable room.

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But if the purchaser decided to convert both floors

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into one-bedroom flats, how much could they generate?

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A one-bedroom flat in this location,

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you're comfortably looking at £700 a calendar month.

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And if put on the market for resale?

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A couple of one-bedroom flats here, and they'd be big one-bedroom flats,

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I think they'd get £160,000 each.

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It is just fantastic to have options, isn't it?

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With this lot, well, you've got a multitude, choices galore.

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I think I'd be tempted to turn this from commercial into residential

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and really maximise my investment.

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

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Lot 41.

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Start me where you will. Can I see £150,000 for it?

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150, doesn't seem a lot.

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You must be able to get 15 grand a year for that, I'd have thought.

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150 can I say? Where else do you get 10% return?

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130, then. 130. I'm on the way. 130 I've got

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and I should think so. And five, now, may I say?

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135 bid I've got. 140 in front of you. 140 I'm bid.

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145 in a fresh place. 145. 150 now.

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150. There's four of you after it. 150.

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155. 152?

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152.

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155?

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At 152,000 I've got. Five, I'm looking for.

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I got 155, there. 157, do I see?

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157? For the first time, then, at £155,000,

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the bidder at the back.

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155 for the second time.

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Third and final time, everybody's out of it, all done, 155, sir, it's your bid.

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Lurking in the background but successful with his 155,000 bid

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was Colin.

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He's a scaffolder by trade, also owns a sandwich shop in nearby Faversham,

0:19:180:19:22

and has a small portfolio of buy-to-let properties.

0:19:220:19:26

He wants to make the upstairs here residential,

0:19:260:19:28

keeping the commercial usage downstairs.

0:19:280:19:32

I caught up with him three and a half months after the auction

0:19:320:19:35

when he'd managed to get those change-of-use plans in place.

0:19:350:19:38

Colin, I always love coming to Canterbury.

0:19:390:19:42

Why do you like it so much? Enough to want to buy somewhere here?

0:19:420:19:45

When I first saw the property, with having a sandwich shop in Faversham,

0:19:450:19:49

I thought about opening a sandwich shop here,

0:19:490:19:51

with all the offices around the area,

0:19:510:19:53

but with making some investigation,

0:19:530:19:56

I found out, really, there's quite a bit of competition here.

0:19:560:19:59

So, basically, now we've gone for just to rent it out as a property.

0:19:590:20:03

When you bought this property on auction day, it was completely commercial.

0:20:030:20:07

You've now been able to get the planning

0:20:070:20:09

to turn it into residential upstairs.

0:20:090:20:11

How long did that take you and how hard was that?

0:20:110:20:14

It was quite easy, actually. We had no problems at all.

0:20:140:20:17

We just put in a standard application

0:20:170:20:19

to apply for residential use and I think the biggest problem we had

0:20:190:20:23

was we didn't show a wheelie bin area for the commercial shop.

0:20:230:20:28

-And that was it?

-That was it, that was the only amendment we had to make.

0:20:280:20:31

It's great that the process went so smoothly.

0:20:310:20:35

We know all too well at Homes Under The Hammer

0:20:350:20:38

that planning can take the most unexpected twists and turns.

0:20:380:20:41

What has Colin got in mind for the commercial unit?

0:20:410:20:44

We don't know exactly yet.

0:20:440:20:46

Obviously, we've got to complete the property first.

0:20:460:20:49

I've had a couple of enquiries,

0:20:490:20:50

one from someone who wanted to open an art gallery,

0:20:500:20:53

and one from a hairdresser's anyway, but at the moment, I've no fixed plans.

0:20:530:20:59

Well, I did say this property was all about the options.

0:21:000:21:04

With interest already, Colin should have no problem renting out the commercial space here.

0:21:040:21:10

His experience as a scaffolder and property developer

0:21:100:21:13

will stand him in good stead, and with his sandwich shop also on the go,

0:21:130:21:17

he's certainly got a lot on his plate.

0:21:170:21:20

How many corned beef sandwiches do you make a day in your shop?

0:21:220:21:26

No corned beef, just gammon ham!

0:21:260:21:28

Do you actually get involved in that as well?

0:21:280:21:30

Thursdays is my day working.

0:21:300:21:32

Do you actually get stuck in with the sandwiches?

0:21:320:21:35

I thoroughly enjoy it. It'll make you laugh, I make the cakes.

0:21:350:21:38

-Do you?

-I actually do.

0:21:380:21:39

So did it kind of excite you

0:21:390:21:41

to think you could possibly potentially have brought a bit of that business to Canterbury?

0:21:410:21:45

That was the initial thought to actually come here,

0:21:450:21:48

but obviously, as I said, we're not going to do that now.

0:21:480:21:51

I think it's got a really nice ring to it, Colin the Baker.

0:21:510:21:54

-It could be a little bakery shop for you!

-I don't think so.

0:21:540:21:57

-That's a no, then!

-That's a definite no!

0:21:570:22:00

# If I knew you were coming, I'd have baked a cake

0:22:000:22:04

# Baked a cake Baked a big fat cake

0:22:040:22:06

# If I knew you was coming I'd have baked a cake

0:22:060:22:09

# How'd you do? How'd you do? How'd you do? #

0:22:090:22:13

So Colin won't be persuaded to don his baker's hat.

0:22:130:22:16

I'm also surprised that he wasn't persuaded

0:22:160:22:19

to go for the more lucrative residential option here.

0:22:190:22:23

The first thing I thought

0:22:230:22:25

when I walked along the streets of Canterbury,

0:22:250:22:27

which I do happen to know quite well, this area,

0:22:270:22:30

I think this would do extremely well, all of it, as a residential property.

0:22:300:22:34

What about two flats? Have you thought about that?

0:22:340:22:37

That was one of the problems. What do we do with it?

0:22:370:22:40

Because there are many options with it.

0:22:400:22:42

We could have it as commercial,

0:22:420:22:44

we could have a flat upstairs and commercial downstairs,

0:22:440:22:46

we could have it as two flats,

0:22:460:22:48

we could go for an actual... entirely just a house on its own.

0:22:480:22:52

That was a little bit of a sort of, what options do we take,

0:22:520:22:55

so we're sticking by keeping the commercial at the moment and residential,

0:22:550:22:59

and we'll see how it goes in the future.

0:22:590:23:01

If the demand dies off a little bit,

0:23:010:23:04

obviously then we can decide what would be best to do

0:23:040:23:06

with the property at that time.

0:23:060:23:08

So you don't want to set up a business yourself here.

0:23:080:23:11

Is this for you to rent out to a business?

0:23:110:23:13

At the moment, yes, but obviously, with owning the property,

0:23:130:23:17

if me or my family want to set up a business here,

0:23:170:23:20

we have the option to do that, so we have another option.

0:23:200:23:22

I can see logic behind Colin's plan,

0:23:240:23:26

but close as it is to the high street, this is a smidgen off the beaten track.

0:23:260:23:32

Many businesses might be put off by the potential lack of passing trade.

0:23:320:23:35

Colin should also bear in mind how long a business would be willing to rent the premises for,

0:23:350:23:41

particularly in the current choppy financial market.

0:23:410:23:45

And speaking of money...

0:23:450:23:47

So with what you're going to do at the moment,

0:23:470:23:50

as it currently stands, what's your budget?

0:23:500:23:52

-Erm, I'd say 15 to a maximum of 20.

-OK, is that likely to change?

0:23:520:23:57

No, I think we should be on target for that.

0:23:570:24:00

-And your timescale for the work?

-Hopefully a maximum of six months.

0:24:000:24:04

-To do everything?

-That's correct.

-Good luck with this. Thank you.

0:24:040:24:07

Thank you.

0:24:070:24:08

# How'd you do? How'd you do? How'd you do? #

0:24:080:24:11

Colin is certainly keeping his options open.

0:24:130:24:15

I like a man who dabbles in property, scaffolding,

0:24:150:24:18

and making fairy cakes!

0:24:180:24:21

I'm just not convinced that leaving it part commercial will be the most lucrative option.

0:24:210:24:26

I'm really intrigued to find out what business will work in there.

0:24:260:24:30

Join me later in the programme and you can find out.

0:24:300:24:33

Coming up, I find a potential beast of a property in Staffordshire.

0:24:350:24:40

Do something there and create yourself a really monstrous kitchen.

0:24:400:24:44

In Canterbury, Colin has already decided what to do after this development.

0:24:440:24:49

Get myself a little toy of a boat or something and play more golf, hopefully.

0:24:490:24:54

But first, in County Durham, it seems Steve's as enthusiastic as ever.

0:24:550:25:00

I think it just drives you on to do another one, you get the bug.

0:25:000:25:04

Time now to head back to the beautiful area of Consett in County Durham,

0:25:130:25:17

where earlier we met Steve, who lives locally with his partner, Gemma.

0:25:170:25:21

They've been running a rural pub here for the last three years.

0:25:210:25:26

Steve had bought this three-bed terraced bungalow at auction for £52,000.

0:25:260:25:31

This was his fourth property,

0:25:310:25:33

as he thinks it's the best way to save money for the future and his family.

0:25:330:25:38

The bungalow was tired and dated,

0:25:390:25:42

with lots of concrete floors and skirting.

0:25:420:25:45

And the back garden was a bit of a jungle,

0:25:450:25:47

but the biggest question of all was what Steve was planning to do.

0:25:470:25:51

Plans are the kitchen/bathroom will be turned into a kitchen,

0:25:510:25:56

knock the wall out that's adjoining that, and probably to put a...

0:25:560:26:00

a bathroom in one of the bedrooms and make the one in the bedroom smaller.

0:26:000:26:04

The garden all needs re-doing, new double glazing,

0:26:040:26:08

and it looks like all the walls will need plastering, so there's quite a bit to do, really.

0:26:080:26:13

Steve set a budget of between £10,000 and £15,000 and a timescale of two months,

0:26:130:26:18

as he intended to get it on the rental market as soon as possible.

0:26:180:26:22

Three months later, have things gone to plan?

0:26:220:26:25

Well it's certainly looking a whole lot better, both outside and in.

0:26:310:26:36

Upstairs, the three bedrooms are almost unrecognisable.

0:26:460:26:50

This is what I call a transformation!

0:26:520:26:55

Steve's stripped it right back and started afresh

0:26:550:26:58

with neutral carpets, newly plastered and decorated walls, heating, windows and doors,

0:26:580:27:04

but what about that tired old kitchen and bathroom?

0:27:040:27:08

This was where the bathroom was, where I'm standing, this is where it ended.

0:27:160:27:20

We've moved the bathroom into the other part of the bedroom

0:27:200:27:24

and taken some space away there, and made a much bigger kitchen.

0:27:240:27:28

Put a better kitchen in because we're going to sell,

0:27:280:27:31

and as you can see, I'm very pleased with it.

0:27:310:27:34

It seems the plans to let this out have changed as much as the kitchen.

0:27:340:27:39

Steve and Gemma have decided that they would prefer to release the equity

0:27:390:27:43

as they're buying another two investment properties.

0:27:430:27:46

So the renovation was upgraded for the resale market.

0:27:460:27:50

In order to improve the bathroom, they needed to adjust one of the bedrooms slightly.

0:27:500:27:55

So basically what we've done, we've shortened this bedroom here,

0:27:550:28:01

made it into a single, probably queen-sized bedroom.

0:28:010:28:03

We had to move the electrics, which were above, they were in the bathroom.

0:28:030:28:09

That was quite a big job but the whole house has been rewired anyway.

0:28:090:28:13

We've turned this into a wet room, as you can see.

0:28:130:28:16

Rather than just tile it half,

0:28:180:28:20

we've tiled it full-tile floor-to-ceiling

0:28:200:28:22

because we're now going to sell the property rather than rent it.

0:28:220:28:26

Initially, here was a pantry, and the door was here,

0:28:260:28:30

and we've had to move it to make a corridor to make a bigger bathroom.

0:28:300:28:34

Steve has certainly been busy, and the reconfiguration

0:28:340:28:38

works much better, but there's no doubt that this has turned out to be a major project.

0:28:380:28:43

Basically, we've had to gut the whole house,

0:28:430:28:47

so we had to do all the ceilings.

0:28:470:28:49

All the walls have been re-plastered, the boiler was no good

0:28:490:28:54

so a new central heating system.

0:28:540:28:56

The other thing, the garden was quite a mess,

0:28:560:28:59

so we had to then completely rip all the trees out,

0:28:590:29:03

take all the lining up and re-turf that, put some decking down.

0:29:030:29:08

That's a serious amount of work,

0:29:080:29:10

but he's had help from some builders and his brother-in-law.

0:29:100:29:14

But as Steve was still managing his pub at the same time,

0:29:140:29:17

he admits he didn't do as much as everyone else.

0:29:170:29:20

I pitched in where I could, to be honest,

0:29:200:29:23

but it's a first-time project for one of this size,

0:29:230:29:25

so the credit really goes to the two builders that sorted out most of the work.

0:29:250:29:30

So, how did the budget fare?

0:29:310:29:34

The budget was between £10,000 and £15,000. Erm...

0:29:340:29:38

initially, we thought that would be a conservative budget,

0:29:380:29:42

but the budget went to about 23,500.

0:29:420:29:45

Quite a substantial budget overspend, then,

0:29:450:29:49

and the turnaround was one month longer than planned, too.

0:29:490:29:52

But the bar was raised when the house was fitted out for resale

0:29:520:29:56

instead of rental, so Steve must be happy.

0:29:560:30:00

It is a nice house and it's turned out really well,

0:30:000:30:03

and I think it just drives you on to do another one.

0:30:030:30:06

You get the bug, sort of thing.

0:30:060:30:09

Let's tot up some figures, then.

0:30:090:30:10

The bungalow's purchase price of 52,000,

0:30:100:30:13

added to Steve's £23,500 spend makes a total outlay of 75,500.

0:30:130:30:19

Let's hear from two local estate agents what it could be worth now.

0:30:230:30:28

The property has a great wow factor.

0:30:300:30:32

The owner has put a very high standard of finish

0:30:320:30:35

for a refurbished property, thus will attract higher rent,

0:30:350:30:38

a better quality of tenant,

0:30:380:30:40

and also achieve a higher selling price on the market.

0:30:400:30:43

The property is excellent.

0:30:430:30:45

It's been really refurbished to a very high standard.

0:30:450:30:47

I think the new owners have done an excellent job on the property.

0:30:470:30:51

It's spacious,

0:30:510:30:52

the new kitchen is superb, as is the new bathroom.

0:30:520:30:55

Everything's really clean and it's a really nice home.

0:30:550:30:59

Remembering Steve's total outlay here of 75,500,

0:30:590:31:03

what's the bungalow's potential resale value now?

0:31:030:31:06

I'd value the property between £80,000 and £90,000.

0:31:060:31:11

I'd expect to sell this property in the region of £95,000,

0:31:110:31:14

if it were put back onto the market for resale.

0:31:140:31:16

That seems about right. That's what I valued it at.

0:31:160:31:19

I'd say probably top end, 95 is what we hoped to probably get. Close to 95, anyway.

0:31:190:31:25

That's a potential profit of between £4,500 and £19,500, minus the usual selling expenses.

0:31:250:31:32

Whilst I hope he can achieve the higher figure,

0:31:320:31:35

is rental still a viable option?

0:31:350:31:38

The rental income for this property would start between £450 and £495 per calendar month.

0:31:380:31:44

For a rental valuation,

0:31:440:31:45

I'd expect to be achieving somewhere in the region of £475 per calendar month.

0:31:450:31:50

That's probably what I'd expect.

0:31:500:31:51

I mean, we were going to rent it but now we're just going to sell it.

0:31:510:31:55

So he's not even tempted by those pretty healthy yields of between seven and eight per cent.

0:31:560:32:02

This is going back on the resale market,

0:32:020:32:04

but Steve and his team have done a great job here, so he must be pleased.

0:32:040:32:09

I think it's really, really nice. It's that nice, my mum wants to buy it!

0:32:090:32:14

I'm in Stafford, south of Stoke-on-Trent,

0:32:180:32:22

north of Birmingham, and about 30 minutes from each.

0:32:220:32:25

Stafford goes way back and has always been an important centre for this area.

0:32:250:32:30

It's said James I even called it Little London.

0:32:300:32:33

Certainly, the town centre still hints of its rich heritage,

0:32:330:32:38

with the largest timber-frame townhouse in England.

0:32:380:32:41

So, will it be a timber-framed house or just a terrible one for me today?

0:32:410:32:45

First impressions, they're so important when it comes to houses.

0:32:450:32:49

It's said that people make the decision to buy or not

0:32:490:32:51

within the first 30 seconds of walking through the front door.

0:32:510:32:54

But actually, it begins before that. It's called curb appeal.

0:32:540:32:57

If a property works when you drive up, again,

0:32:570:33:00

you're more likely to have success in terms of buying or selling it.

0:33:000:33:04

You can't complain about this estate and this is the property I'm here to see.

0:33:040:33:07

Nice lawns, nicely tended plants, it's a good start.

0:33:070:33:10

£75,000 was the guide price. Two-bed semi, let's take a look.

0:33:100:33:15

Yes, all looks fine so far.

0:33:160:33:18

OK, so the windows and doors are a bit dated

0:33:210:33:23

and may need replacing, but with that decent-sized front lawn

0:33:230:33:26

and the fencing in good condition, along with the park just opposite,

0:33:260:33:30

this house and surroundings have a lovely well-kept feel about them.

0:33:300:33:35

So, it's an ex-local authority house, which I think is a really good thing

0:33:350:33:39

because they're normally extremely solidly built and with lots of storage.

0:33:390:33:43

So, is this one an exception? Let's find out. What have we got?

0:33:430:33:47

From living room, lots of light coming through the windows.

0:33:470:33:50

Nice to have that opened up to some kind of patio door perhaps out onto the garden.

0:33:500:33:55

Through to the kitchen, which unfortunately isn't massive,

0:33:550:33:58

and the units are obviously very dated.

0:33:580:34:01

But there's a solution, because you've got this very strange little room just off the kitchen there.

0:34:010:34:06

I guess it was the dining room, but why have it separate?

0:34:060:34:09

Knock this wall through, put some kind of joist across the top,

0:34:090:34:13

an RSJ and bingo, you've got yourself a really nice kitchen/dining room area.

0:34:130:34:19

And if that's not enough, there's more good news out here,

0:34:190:34:23

because masses of outdoor space.

0:34:230:34:26

You've got this fairly substantial covered walkway area

0:34:260:34:29

going out to what I suppose is the utility room.

0:34:290:34:32

But if you weren't happy with that space,

0:34:320:34:34

do something there and create yourself a really monstrous kitchen!

0:34:340:34:38

# Is it a monster?

0:34:380:34:39

# Is it a monster? #

0:34:390:34:41

This area would certainly benefit from a complete refit.

0:34:420:34:45

Taking the hotchpotch of rooms and combining them to make a kitchen diner,

0:34:450:34:49

ideally in a properly-built extension, surely would be the way to go.

0:34:490:34:54

Upstairs, I don't think any such drastic changes are needed

0:34:570:35:01

with the two bedrooms and bathroom, other than a little updating and modernising.

0:35:010:35:06

With that large back garden, you could end up with a good-sized family home.

0:35:060:35:11

So far, investing in this property

0:35:110:35:13

looks to me like anything but pouring money down the drain.

0:35:130:35:17

I always worried I'd end up in the gutter!

0:35:180:35:21

But in this instance, it's for a good reason

0:35:210:35:23

because this is actually a dropped curb right outside the property.

0:35:230:35:28

So what, you might ask. I'll tell you what that is.

0:35:280:35:31

That's a way to instantly add value and saleability to the house

0:35:310:35:35

because what does it lead to?

0:35:350:35:37

Off-road parking, and that is what everybody wants.

0:35:370:35:40

If there wasn't a dropped curb, you'd have to apply to the council

0:35:400:35:44

and you'd also have to obviously pay for it to be done.

0:35:440:35:47

In this case, it's there, a bit of gravel on here, bingo.

0:35:470:35:50

I rather like this patch of green at the front,

0:35:540:35:57

but with such a good-sized garden at the back, I can't see you actually using it that much,

0:35:570:36:03

and off-street parking would add saleability for sure.

0:36:030:36:06

I think this is a really sound property with room for improvement.

0:36:060:36:10

But at the same time, you could just upgrade

0:36:100:36:13

and modernise what's already here.

0:36:130:36:15

What does an estate agent think about its state

0:36:150:36:17

and the best way forward for this place guided at 75,000?

0:36:170:36:22

It's a solid house, good-sized rooms.

0:36:240:36:26

There's a lot of potential here,

0:36:260:36:28

especially the little extension on the side, offers great scope

0:36:280:36:31

to either extend the kitchen or even add a small utility to it.

0:36:310:36:35

So, what kind of returns might be achievable here once it was refurbished?

0:36:350:36:41

The property in its current condition is probably worth in the region of about £85,000.

0:36:410:36:45

Finished to a good standard,

0:36:450:36:47

this property should market for about 120,000,

0:36:470:36:50

and it would rent for about £525 per calendar month.

0:36:500:36:54

So, this tidy house could also be a tidy investment.

0:36:560:36:59

Well it's a good, solid, practical house, this one,

0:37:020:37:05

that would make a lovely first-time buyer's house

0:37:050:37:08

or possibly something you could rent out.

0:37:080:37:11

Spend a bit of money on it sorting it out,

0:37:110:37:13

and you'd recoup your investment, I'm pretty sure.

0:37:130:37:16

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

0:37:160:37:19

Lot 10. To Stafford now, the county town of Stafford.

0:37:240:37:28

A semi-detached house, requires modernising. Gas central heating.

0:37:280:37:32

60 then, let's get it going. Can we say 60? It's got to be worth that, surely. 60 bid, thank you.

0:37:320:37:38

At 60,000, took it there. Do you want to go 65, sir? £65,000. At 65.

0:37:380:37:42

70, is it now? At 65. 70.

0:37:420:37:45

75? £75,000, standing right. £75,000. 80, is it?

0:37:450:37:50

At 75... One, you're saying. 76.

0:37:500:37:54

77. 78. 79.

0:37:540:37:58

At 79,000. Standing right at 79. At 79 then.

0:38:000:38:03

Bids right, standing right, at 79,000. 80 anywhere else?

0:38:030:38:07

If not, 79 for the first time. 79 for the second time.

0:38:100:38:15

Third and final time at £79,000...

0:38:150:38:18

Your lot, sir, well done.

0:38:180:38:20

For 79,000, the successful bidder on the two-bed Staffordshire house was Peter.

0:38:200:38:26

He's a retired college lecturer

0:38:260:38:28

who now drives a minibus for a small firm.

0:38:280:38:31

His wife Helen also drives a minibus for the college Peter used to work at.

0:38:310:38:35

I met them to hear what drove them to buy this place.

0:38:350:38:39

-Peter, Helen, lovely to meet you both.

-Thank you.

0:38:390:38:41

Tell me why you wanted to buy this place.

0:38:410:38:43

Our daughter is looking for somewhere to live.

0:38:430:38:47

She finishes university this week, actually,

0:38:470:38:51

and her and her fiance will need somewhere to live.

0:38:510:38:55

She's expecting a baby, so we thought we'll buy this for her

0:38:550:38:58

-and it'll give them a start.

-Wow! Well they're lucky, aren't they?

0:38:580:39:01

We've got four daughters altogether and this is the third one we've done it for.

0:39:010:39:05

It's normally just paying for the wedding,

0:39:050:39:08

it's not normally buying them a house. You know that, don't you?

0:39:080:39:11

Well, it is bought very much as a business, erm...

0:39:110:39:15

thought, you know, with business in mind. They'll pay rent on it.

0:39:150:39:18

-Why this house, then?

-Well, it was quite simple.

0:39:180:39:21

We wanted somewhere in Stafford and at auction, this was the only house.

0:39:210:39:25

-# I am the one and only.

-#

0:39:250:39:28

Well, I guess that made it easier when deciding which house to go for!

0:39:280:39:32

Luckily for all concerned, it fits the bill nicely.

0:39:320:39:35

It's a good family starter home at a decent price and in Stafford.

0:39:350:39:39

With three daughters housed and other previous developments,

0:39:390:39:43

this certainly isn't their one and only property project.

0:39:430:39:48

-I think we've had about 10 we worked out, didn't we?

-Yes.

0:39:480:39:51

Over the years, yes.

0:39:510:39:52

-Great, and always spurred on by some family interest, or...?

-No.

0:39:520:39:56

We've got an unusual situation,

0:39:560:39:58

as much as we live in tied accommodation, which goes with the job.

0:39:580:40:01

I was a lecturer in agriculture, now retired as of last August,

0:40:010:40:07

so we initially started buying houses so it's some way

0:40:070:40:10

to try and build up a nest egg for ourselves over the years.

0:40:100:40:13

Unfortunately, the majority of the nest egg has been spent on daughters, but...

0:40:130:40:17

..hey-ho!

0:40:190:40:20

But they are getting some rent from their daughters,

0:40:200:40:23

and I guess they're pretty good tenants.

0:40:230:40:26

Well, I hope they are anyway! So, it's not a total money drain.

0:40:260:40:29

So, tell me what you're going to do to sort it out.

0:40:320:40:34

Well, the first thing to be done is the windows.

0:40:340:40:37

We'll replace all the windows,

0:40:370:40:39

possibly put a porch on the front.

0:40:390:40:42

We understand the guttering is leaking, so that's all got to be checked and replaced.

0:40:420:40:46

The roofing has got to be checked.

0:40:460:40:48

We want to create some form of off-road parking out there for them as well.

0:40:480:40:53

Internally, sort of replacing doors,

0:40:530:40:57

re-tiling and redecorating throughout.

0:40:570:40:59

Check the electrics, check the gas.

0:40:590:41:01

What about anything more elaborate, like an extension?

0:41:010:41:04

It's a possibility, but I suspect the budget will restrict us.

0:41:040:41:09

-So what's the budget?

-We're looking at 10 grand, I think, at the moment.

0:41:090:41:14

£10,000 will certainly do a decent refurbishment here,

0:41:140:41:18

but I think the extension will have to wait,

0:41:180:41:21

as they have some more pressing issues of their own.

0:41:210:41:25

So what's next on the agenda?

0:41:260:41:28

I think a property for ourselves, you know, somewhere to live.

0:41:280:41:32

As I say, we're expecting to be out of our property in the next 12 months,

0:41:320:41:36

so we want somewhere to be able to set up ourselves and go and live.

0:41:360:41:40

Ideally I'd like a six-bedroom farmhouse with a granny annex,

0:41:400:41:44

40 acres of ground overlooking the hillside,

0:41:440:41:46

but I suspect I may be a bit over the top on that one!

0:41:460:41:49

Well, congratulations, good luck with it.

0:41:490:41:52

-We'll look forward to seeing how you get on.

-Thank you.

0:41:520:41:54

# I am the one and only

0:41:540:41:58

-# Can't take that away from me.

-#

0:41:580:42:01

Well, it turns out having four daughters was a bit of an expensive thing for Helen and Peter.

0:42:010:42:06

I bet they're glad they didn't have a bigger family!

0:42:060:42:09

But it's just as well that the only house available in Stafford

0:42:090:42:12

was such a good investment.

0:42:120:42:14

How will they get on sorting it out? And will they end up with a house of their own?

0:42:140:42:18

You can find out later in the show.

0:42:180:42:20

Well, we wait patiently for our buyers to do work on their properties

0:42:230:42:27

and sometimes, they make a wonderful job of it.

0:42:270:42:30

And sometimes, they don't do anything at all!

0:42:300:42:33

So what's happened with today's buyers? Let's find out.

0:42:330:42:37

We're back in Canterbury in Kent, where scaffolder, sandwich shop man,

0:42:370:42:41

and small-time property developer Colin

0:42:410:42:44

bought this former hairdressers and office at auction for 155,000,

0:42:440:42:49

but the plan wasn't to move one of his businesses into his latest acquisition.

0:42:490:42:55

So you don't want to set up a business yourself here.

0:42:550:42:57

Is this for you to rent out to a business?

0:42:570:43:00

At the moment, yes,

0:43:000:43:01

but obviously with owning the property, if me or my family want to set up a business here,

0:43:010:43:06

we then have the option to do that, so again, we have another option.

0:43:060:43:09

And options are something this property certainly wasn't short of.

0:43:090:43:14

Fortunate to be able to have his cake and eat it, too,

0:43:140:43:16

Colin wanted to convert the upstairs into a residential flat

0:43:160:43:20

and maintain the commercial space downstairs.

0:43:200:43:24

Seven months after I first met Colin, is the former hair salon looking trim,

0:43:240:43:29

or is the renovation far from cut and dried?

0:43:290:43:32

True to his word, Colin has split the usage into commercial

0:43:400:43:44

and residential, although the plans have changed slightly.

0:43:440:43:47

Downstairs, the front and middle rooms are now the commercial unit with kitchen and loo.

0:43:470:43:53

But this area is slightly smaller than originally intended.

0:43:530:43:56

That's because Colin decided to create a three-bed flat

0:43:560:43:59

split over the rear of the ground and the first floor.

0:43:590:44:04

That meant separating off the stairs,

0:44:040:44:06

the kitchen and the former washroom, which is now the lounge,

0:44:060:44:09

with new separate access to the flat.

0:44:090:44:12

The rooms upstairs have been converted into bedrooms,

0:44:140:44:17

and what was just a loo is now a shower room,

0:44:170:44:20

so the property now houses a three-bedroom duplex maisonette.

0:44:200:44:23

The downstairs rooms have been renovated to make them more in keeping with their new use.

0:44:230:44:29

The changes we've made here,

0:44:290:44:31

this used to be part of the commercial area.

0:44:310:44:33

There was a line of sinks along here, and into the kitchen here

0:44:330:44:37

we've obviously fitted a hob and everything and tiled it all and everything,

0:44:370:44:42

and we've also added these units here, because it is a small kitchen,

0:44:420:44:45

to give it a bit more room to actually store stuff in.

0:44:450:44:49

At the moment, we have a little bit more to do but it's nearly there.

0:44:490:44:53

All that's left to do to this part of the property

0:44:530:44:56

is some additional decorating, and the flooring in the living room.

0:44:560:45:00

But otherwise, all internal work is complete.

0:45:000:45:04

The roof has been repaired, central heating installed throughout,

0:45:040:45:09

and a new electrical system put in.

0:45:090:45:11

Did Colin manage to do all this within his original budget of 15,000 to 20,000?

0:45:110:45:18

I've spent about 18,000 at the moment.

0:45:200:45:23

There was a little bit more cost than we anticipated on things

0:45:230:45:27

but we should be getting in within about 20,000 to 21,000 when the final bills are in.

0:45:270:45:31

So, only a little over budget, and his timescale has gone over somewhat, too,

0:45:330:45:37

with bits and bobs still left to do.

0:45:370:45:40

But he's a very busy man.

0:45:400:45:43

I'm a little bit behind on the schedule.

0:45:430:45:45

Basically, I had other commitments elsewhere,

0:45:450:45:47

other properties that needed maintenance, people moving out.

0:45:470:45:52

I have a student property that I had to make good,

0:45:520:45:56

but time goes by so quickly!

0:45:560:45:58

Yep, it sure does!

0:46:010:46:02

Colin plans to rent the maisonette out,

0:46:020:46:04

and has found someone to take on the commercial space downstairs, close to home.

0:46:040:46:08

Since buying the property, my son has taken an interest,

0:46:090:46:14

and he's actually going to turn this into a takeaway food shop,

0:46:140:46:19

sandwiches, baguettes, and so on, and I've been fortunate enough

0:46:190:46:22

to allow him to have it rent free for a year, so I think I'm quite lucky.

0:46:220:46:27

Glad to hear you've retained your sense of humour, Colin,

0:46:270:46:31

and that's a lovely gesture to your son.

0:46:310:46:34

But do two local estate agents

0:46:340:46:35

think that what he's done here

0:46:350:46:37

is just as lovely?

0:46:370:46:39

A lot of conversion works have been done, a bit of subdivision.

0:46:390:46:43

Complete redecoration throughout.

0:46:430:46:45

I think it works really well.

0:46:450:46:47

This is a good property and a great location.

0:46:470:46:49

It's close to the city centre.

0:46:490:46:51

If I owned this, I might have done it differently and made it two residential units

0:46:510:46:55

or one large residential unit, but it's a good idea

0:46:550:46:58

to have a spread of income from both commercial and residential.

0:46:580:47:02

Colin purchased the property for 155,000

0:47:030:47:07

and estimates his spend will be around 21,000.

0:47:070:47:10

Altogether, that makes £176,000, and with his plans to rent it out,

0:47:100:47:15

what would two estate agents recommend charging for that?

0:47:150:47:21

In terms of renting a flat out,

0:47:210:47:23

we're looking at around £900 per calendar month.

0:47:230:47:26

The rental value of the flat upstairs is probably £650 per calendar month.

0:47:260:47:31

If you let to students, the rent would be higher.

0:47:310:47:34

They pay £320 roughly per person per month,

0:47:340:47:38

so you'd be looking at £960 per month but the use is more intensive.

0:47:380:47:43

The student figure, I was aware of that

0:47:430:47:45

because I do have some students at the moment,

0:47:450:47:47

so that was the ballpark that I know is feasible, sort of thing.

0:47:470:47:52

What about the commercial section?

0:47:530:47:57

I'd put the rental in at around about £400 per calendar month.

0:47:570:48:00

The shop would let for about £600 per calendar month,

0:48:000:48:04

so it has an annual income of around £7,200 per annum.

0:48:040:48:07

Funnily enough, I was thinking of somewhere in between there,

0:48:070:48:10

but I can't complain.

0:48:100:48:12

It's quite a nice figure. I look forward to my son

0:48:120:48:15

being a success and he'll move on

0:48:150:48:17

and I can get some money for the property, so I hope time flies.

0:48:170:48:22

No wonder Colin's keen for his rent-free son to move on,

0:48:230:48:26

because those estimates mean that from the lower rental valuations

0:48:260:48:31

up to the best case scenario, he could earn a yield of between seven and just over 10.5%!

0:48:310:48:37

If he did decide to sell both units as a whole,

0:48:380:48:41

the estate agents gave valuations of between 220,000 and 240,000,

0:48:410:48:46

so his pre-tax profit would be between 44,000 and 64,000, minus expenses.

0:48:460:48:53

With those impressive figures, and the work nearly done,

0:48:530:48:56

what's next on Colin's agenda?

0:48:560:48:59

I've told my family I don't intend to get any more property

0:48:590:49:02

and they've all turned round and said, "Yeah, wait until you see a bargain", basically!

0:49:020:49:06

But now I'm intending to hopefully - I'm not getting any younger -

0:49:060:49:10

take life a little bit more easy.

0:49:100:49:13

Get myself a little toy of a boat or something and play more golf, hopefully. We shall see.

0:49:130:49:18

I've heard that before!

0:49:180:49:20

In the ancient midland town of Stafford, I came across a two-bed semi that was generally pretty good.

0:49:230:49:29

# I am the one and only. #

0:49:290:49:32

It was in a pleasant area,

0:49:320:49:34

had loads of space back and front, and just needed updating.

0:49:340:49:39

For retired lecturer Peter and his wife Helen,

0:49:390:49:41

it was exactly what they were looking for.

0:49:410:49:44

Tell me why you wanted to buy this place.

0:49:460:49:49

Our daughter is looking for somewhere to live.

0:49:490:49:51

She finishes university this week, actually,

0:49:510:49:54

and her and her fiance need somewhere to live.

0:49:540:49:58

She's expecting a baby so we thought we'd buy this for them and give them a start.

0:49:580:50:02

# Is it really true? Oh, lucky you. #

0:50:020:50:06

As they have four daughters,

0:50:060:50:08

this was the third time they'd done this.

0:50:080:50:11

They paid £79,000 at auction to help Kerry and her partner

0:50:110:50:14

start life as new parents, but then there was the small matter

0:50:140:50:19

of completing the renovation before Kerry's baby was due.

0:50:190:50:22

Armed with a £10,000-12,000 budget, they set about their task.

0:50:220:50:26

So, has their lucky daughter got the house she wanted?

0:50:280:50:32

Four months later, we're back.

0:50:320:50:34

On the outside, they've made the most of that already lowered curb

0:50:340:50:39

by creating some off-street parking.

0:50:390:50:42

Along with new windows, doors, and a more suitable porch roof,

0:50:420:50:45

they've created a tidy-looking property.

0:50:450:50:49

And inside, their daughter Kerry has moved in,

0:50:520:50:55

along with new arrival Archie, who's now two months old.

0:50:550:51:00

Since we moved in, we've completely re-done the house, top to bottom.

0:51:010:51:07

We've had windows taken out, doors put in.

0:51:070:51:09

Now it's started to become a home,

0:51:120:51:14

but at first, Kerry and fiance Jamie lived here whilst the work was going on.

0:51:140:51:19

As the house was being done up, at points the kitchen was in the lounge,

0:51:190:51:23

I didn't have a washing machine,

0:51:230:51:25

didn't have a dishwasher, and it was just a little bit of a mess.

0:51:250:51:30

Luckily that's all behind them

0:51:300:51:32

because now she has a fully-functioning kitchen with all mod cons.

0:51:320:51:36

But of course, the renovation was just one of many things

0:51:360:51:40

that have been happening in the last four months.

0:51:400:51:43

I've also had a baby in that time, graduated from university,

0:51:430:51:46

erm, yeah, and obviously moved in with my partner for the first time in our relationship,

0:51:460:51:51

and planning a wedding!

0:51:510:51:53

So, yes, we've kind of got all life's big events going on.

0:51:530:51:57

Crikey, that's a fair amount to take on,

0:51:570:52:00

but at least one thing she can tick off

0:52:000:52:02

is that the bulk of the refurbishment work on the house is now done...

0:52:020:52:06

..with the upstairs bathroom being given a thorough makeover,

0:52:100:52:14

along with the separate toilet.

0:52:140:52:16

The two bedrooms are now vibrant and bright.

0:52:190:52:22

Although this house was bought to help Kerry and her fiance

0:52:220:52:26

get off to a good start in their first family home,

0:52:260:52:29

they're going to pay rent to Peter and Helen, who still own the property.

0:52:290:52:33

The grandparents were heavily involved in the refurbishment, too.

0:52:330:52:37

I've done the majority of the work but Helen has come along

0:52:380:52:42

and helped out where she can.

0:52:420:52:44

Kerry and Jamie have done a lot of the decorating.

0:52:440:52:47

Getting down on her hands and knees until late on in pregnancy,

0:52:470:52:50

painting skirting boards and walls etc.

0:52:500:52:53

Generally, this has been a real team effort

0:52:530:52:56

but there was one area which needed more work than others.

0:52:560:53:00

This is our main area, which we've been very pleased with.

0:53:000:53:03

This was an outhouse and sort of like a coal shed,

0:53:030:53:07

and we've had water put out here and drainage,

0:53:070:53:11

and all the walls have been insulated, so we've got the utility room out here.

0:53:110:53:17

We've got the freezer, washing machine, tumble dryer,

0:53:170:53:20

it's all been tiled, decorated, and we managed to get a toilet out here as well.

0:53:200:53:25

The biggest challenge is, we couldn't go on to the main sewerage, so we've had to put a macerator on there,

0:53:250:53:30

which gives us... Our grandson was amused when he came in here and wanted to use the electric toilet.

0:53:300:53:35

That's worked well.

0:53:350:53:37

Although there's been a big improvement, there's still more to be done.

0:53:370:53:41

Long-term, there are still plans for a new extension,

0:53:410:53:44

and there's certainly plenty of room in the garden to accommodate it.

0:53:440:53:49

But to have done it now would have certainly meant overspending on their budget.

0:53:490:53:54

The budget was originally set at around 10,000-12,000,

0:53:540:53:58

but since then, we've put the kitchen in, which was £1,000.

0:53:580:54:02

We've also done the utility room,

0:54:020:54:06

and put the extra toilet in. The extra toilet alone was getting on for £1,000.

0:54:060:54:10

So the budget is probably...

0:54:100:54:12

We haven't worked it out exactly but it's around 14,000.

0:54:120:54:15

A £14,000 spend on top of the purchase price of 79,000

0:54:150:54:21

makes the total outlay here £93,000 plus costs and fees.

0:54:210:54:25

Although this was bought with their daughter in mind,

0:54:250:54:28

it was still acquired as an investment, with Kerry paying them rent.

0:54:280:54:32

So, does it stack up as one? What do two local estate agents think?

0:54:320:54:36

The place is a lovely place.

0:54:360:54:38

I think he's done a good job on the refurb.

0:54:380:54:40

I particularly like the off-road parking addition

0:54:400:54:44

that was originally the grassed area at the front.

0:54:440:54:46

I also like the introduction of the utility area into the main house as well,

0:54:460:54:50

and the WC has also added value to the property as well.

0:54:500:54:53

It's nice to see the new kitchen in it.

0:54:530:54:56

Adding the driveway is always a good bonus

0:54:560:54:59

but it could do with a few extras adding, updating the fires,

0:54:590:55:02

things like that, just to give it that bit more of a wow factor.

0:55:020:55:06

First and foremost, this is a rental property with their daughter being the tenant,

0:55:060:55:11

but have they invested their 93,000 wisely?

0:55:110:55:14

The current value of the property, I'd expect to achieve in the region of £115,000.

0:55:160:55:21

I'd put a valuation on the property of £110,000.

0:55:210:55:24

-Wow.

-I'm pleased with that.

-Very pleased with that.

0:55:240:55:27

I'm not surprised they're pleased.

0:55:270:55:29

There's a potential pre-tax profit of £17,000-£22,000,

0:55:290:55:33

which isn't too shabby.

0:55:330:55:34

But how could it fare on the general rental market?

0:55:340:55:38

Rental, it would fetch £525,000 per calendar month.

0:55:380:55:41

Rental wise, I've put a valuation on the property of £500 per calendar month.

0:55:410:55:46

That's good value.

0:55:460:55:47

Kerry being our daughter, we're charging her less, but we're happy with that.

0:55:470:55:51

Open market prices would bring an annual rental yield of between 6.5% and 7%.

0:55:510:55:56

Even at the lower rate, this should still be a decent investment.

0:55:560:56:01

Are they happy with their purchase?

0:56:010:56:04

Yes, we are, we're very happy.

0:56:040:56:07

It's been a big project but it's provided its purpose.

0:56:070:56:10

It's provided a good home for Kerry and Jamie and will continue to do so.

0:56:100:56:14

So, the parents are delighted, but how about daughter Kerry?

0:56:140:56:19

Very, very grateful. I'm very, very lucky for what my parents have done.

0:56:190:56:24

If they hadn't have been able to buy us the house and rent it out to us,

0:56:240:56:29

I'm not sure that we'd actually be in our own place by now.

0:56:290:56:32

We could still be living with our parents with a baby,

0:56:320:56:36

so we're very, very grateful to them!

0:56:360:56:39

Join us next time

0:56:500:56:51

when we have more riveting stories from Britain's auction rooms.

0:56:510:56:55

-You wouldn't want to miss it, so join us then.

-Goodbye.

-Goodbye.

0:56:550:56:58

Subtitles by Red Bee Media Ltd

0:57:060:57:09

Martin Roberts and Lucy Alexander visit a bungalow in Consett, County Durham; a property in Canterbury, Kent; and a house in Staffordshire. 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.