Episode 22 Homes Under the Hammer


Episode 22

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Transcript


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Hello. If you want to buy property at an auction,

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you have to do it at the right price,

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-but that's not always easy to do.

-No.

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How do you know if the market is rising or falling?

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Well, one only way to find out what the demand is like

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is to pop down to your local property auction.

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Well, auctions are really exciting

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and you can be easily tempted to buy.

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But how to guarantee success? Well, do your homework first.

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So let's find out which properties created a buzz on today's show.

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There's lots to see in this Hartlepool property,

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but keep your eyes peeled.

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Look at that! I almost missed that.

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You'll need more than a wet weekend to sort out this Chatham house.

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Now this wallpaper, look, is actually so wet.

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And in Blurton, Stoke-on-Trent,

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there's a one bedroom flat that's rather compact.

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But looking around, not in a bad state,

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and a couple of quite nice features.

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All of these properties went to auction,

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

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-when they went under the hammer.

-Sold.

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Today I'm in Hartlepool, in the north-east of England.

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Formerly heavy on industry, such as steelmaking and boatbuilding.

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The place fell into decline.

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But, nowadays, the docks have been rejuvenated,

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to create this incredible marina, with shops, restaurants,

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it was also the host of the 2010 Tall Ships Race.

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# Sail away, sail away, sail away... #

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But lovely as this area is now, it is property that floats my boat.

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Well, not far from the port

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and walking distance from the town centre and railway station

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is the property I'm here to see.

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Two-bedroom mid-terrace, at a guide price of £25,000 plus,

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let's take a look.

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Looking at it at the front isn't all that encouraging.

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It's got double glazing in the windows

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that haven't been boarded up,

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and a somewhat dated pebbledash finish.

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But the most positive view is across the road,

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where new houses have been built.

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So perhaps this is an area that's going places.

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# Cos we're going places

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# Never thought we could... #

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You pretty much know what to expect

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in these kind of terraced properties.

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Let's see if that's the case here.

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Oh. Oh, no, maybe not.

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Look at that coving. And the detailing.

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Very grand, indeed. Gosh, fantastic.

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But through from the entrance there into your rear living room area.

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Not a bad sized space. The kitchen going off it, there.

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Then through to your front living room.

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Obviously it's been knocked through to create a really nice space.

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The window is boarded up at the moment,

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but take that off, replace it with glass

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and lots of light coming in here.

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Open fire, which is always good.

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I would like to see some kind of a fire surround on that.

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Look at that!

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I almost missed that. What a fantastic ceiling rose!

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It's the sort of thing you'd expect in a country house.

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Not a little terrace in Hartlepool. Wow. Right then, change of plan.

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A big fire surround, enough space for the invite for the local gentry

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to their Christmas ball, absolutely superb.

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But, joking aside, really nice original feature.

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Through to the rear up of the property, not so original,

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but in not bad nick. Your kitchen,

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this is an extension to the property added on at a later stage.

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It's not huge,

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the layout is probably making the best use of space.

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The units don't look too old,

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but you probably want to think about replacing those,

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and obviously do the window at the same time.

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But, all in all, a little house with not delusions of grandeur,

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but aspirations to it.

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It's never going to be a country house

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situated in the heart of Hartlepool, but period features are definitely

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a bonus and something that tenants and particularly housebuyers like.

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You may have noticed that there are no radiators or boiler here,

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but they've just been removed for safekeeping, so, another bonus.

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What does the rest of this property have to offer?

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So upstairs and that's a bathroom, that's a nice surprise.

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A really good size,

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although I do not know what on earth is going on with this step.

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As you can see, that is not good, at all

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and it is a very bad trip hazard.

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Maybe take out whatever this is to get that right,

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because it really is not right at all.

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But a good sized space, lots of light coming in again.

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Being in the new extension.

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Up a few more stairs, you've got your two bedrooms.

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You know what, I can't resist it,

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I have got to find out what this is like.

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Oh, look at that.

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Original and beautiful.

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Are there any more hidden gems?

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Well, no, not that I can see.

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The two bedrooms are a good size,

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and there are no complaints about the bathroom.

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But there is quite a large amount of work to tackle

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to get this place to step up to the mark, both inside and out.

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Come out of the rear of the property

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and you find yourself in this little courtyard.

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Really nice and useful to have a bit of outside space.

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It needs tidying up, but apart from that,

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nothing particularly to worry about.

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Here you can also see that the whole of the rear of the property

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is, in fact, a fairly recently built extension.

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You can see the difference in the bricks.

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But I'm more concerned about a couple of things.

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First of all, this. It's a wooden beam over the window.

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That should actually be made of concrete or metal.

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As you can see, if you look above it, there is a bit of a crack,

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probably because this has started to rot and sink.

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That's not good, because before long, the window will crack,

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and eventually that'll fall down.

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Another thing which could be causing all sorts of problems is this,

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a classic case of a stitch in time saves nine, here.

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What has happened is the downpipe has come off here,

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and water, for whatever length of time, has been pouring down

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from not only the roof but from these pipes,

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from the sinks upstairs.

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Down this wall, that's going to be damp and horrible.

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It's probably going to have got into the kitchen

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and it could even be affecting the foundations.

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So that needs to be sorted out,

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and so do the potential problems down there.

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That's another thing to investigate.

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And, generally, this back area is a little disappointing.

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There is access at the rear, but the extension

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has taken what little yard area there was,

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making it less attractive as a resale option.

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So, for me, it has got rental potential written all over it.

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But what does a local estate agent make of this small house

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with big aspirations?

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It is typical for this area.

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A terraced property, obviously this one is in poor condition,

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and needs quite a lot of work doing to it.

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It needs decorating, fully.

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The double glazing seems to be OK,

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but obviously some repairs need doing to that.

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Yes, there is a fair amount of work

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and it's in an area that, at present,

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does not have a very high ceiling value.

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So would it be worth investing the time and money on a house

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which was guided at just £25,000 plus.

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Once it's completely renovated,

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I would suggest somewhere around the £45,000.

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And rental?

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Unfurnished, I would suggest

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somewhere between £375-£400 per calendar month.

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As I expected, it is not going to make a fortune on the resale market.

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But as a rental property, it should work for you, all day long.

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So who's going to take this small house with touches of grandeur

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back to how it was in its glory days?

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Let's go to the auction and find out.

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Lot number 48 is a two bed mid-terrace property,

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most windows do have the UPC frames.

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The radiators and boilers are available but have been removed.

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Who's going to start at 25?

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I need 25 to go. 24?

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I don't have 24?

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One bidder, right at the back, at £24,000.

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Thank you. 25?

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25,000 bid. 26? 26's bid.

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27? 27 bid. 28? Nope. £27,000.

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I'll take 500.

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£27,500 bid. 500 from you?

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28?

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28 bid. And a half?

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The gentleman standing, your last chance,

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I'm going to sell, right-hand side at £28,000.

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Selling it once at 28.

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Selling it for the second time, at £28,000.

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Sold on the right-hand side at £28,000.

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So for £28,000, just £3,000 over the guide price,

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the new owner of the two bedroomed terraced property in Hartlepool

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is local man, Colin.

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He's an electrician by trade,

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so I was intrigued to know what he plans to do with the place.

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-Colin, good to meet you.

-Hi there, Andrew.

-Congratulations.

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Tell me why you wanted to buy this place.

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I was looking for an investment opportunity.

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I've been looking on the market for some time.

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I've actually tried to get into a couple of properties, to buy,

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but I have always been outbid.

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So when this one came up, it was my lucky day.

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So you've bought it as an investment?

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-Hopefully, yes. An investment.

-To do what with?

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-To do up and sell or to keep?

-Hopefully I'm going to keep it and try to get on the rental market.

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What experience have you got? Have you done anything like this before?

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I have, albeit I am an electrician by trade.

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I have done properties up with companies,

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so I thought I would have a go myself. See how I can do it.

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-Is this the first one?

-This is my first one.

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Colin felt it was time to grasp the nettle and go for it himself.

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He saw property development as a way to fill time

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when his electrical business is less busy.

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He also hopes it will provide some kind of pension provision.

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So, the house itself, then, do you like it as it is?

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Are you going to make any improvements? What is the plan?

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I have had a quick look around,

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and at the moment it is a two-bedroom property.

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One of the front bedrooms is quite a big bedroom.

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I think it has got the potential, if I put another wall in,

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-to make it a three bedroom.

-Oh, right.

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A lot of it just once decor. The kitchen is in quite a good state

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It just wants tidying up a bit.

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Basically, I'm going to put new flooring everywhere.

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New bathroom, try and make that something to look at.

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It has got some amazingly grand features for a little house.

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Not least this incredible ceiling rose.

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Yes, I'm going to leave that and try and make that into sort of feature

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by painting it.

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-Do you suppose it had a chandelier at some point?

-Possibly.

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-It will do, I will probably put a chandelier into it.

-You will?

-Yes.

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I love the idea of this little place having a chandelier.

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Why shouldn't it? You know. Maybe a big fireplace, as well.

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There is going to be a new fireplace surround going in.

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Hopefully modernise it a little bit.

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-Budget?

-I'm looking to spend approximately £3000-£5000.

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I think £3000-£5000 as a budget is pretty tight.

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Particularly if he goes with his plan to turn it

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into a three-bedroom house.

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He plans to finish the work in just two or three months.

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So who's going to be doing the work?

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Most of it will be mainly myself,

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-but I have also got my nephew who is an apprentice plumber.

-Great.

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Hopefully he is going to teach me and I am going to teach him a few tricks.

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-We can both learn along the way.

-Has he been doing it for long?

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He is just a young lad, a 17-year-old now,

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so he is in the second year of his apprenticeship.

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Hopefully, he will be able to learn a lot, as well as myself.

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-A good bit of practical experience for him.

-It would be.

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Great. Well, listen. Congratulations. Good luck with it.

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-I look forward to seeing how you get on.

-Cheers, then. Thanks, now.

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Well, I think Colin has got himself a good little property here,

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but I am concerned about that budget.

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£3000-£5000.

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The thing is, when you start doing up houses,

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there are always things you'll discover needing to be done.

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You can find out if he manages to stick to it, later in the show.

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Consistently ranked one of the most expensive cities in the world,

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London's house prices are unaffordable for many.

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So people are looking elsewhere when it comes to buying property.

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Ever considered Chatham in Kent?

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The average house price here is £160,000.

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It takes over half an hour to travel into central London.

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Worth considering, I'd say.

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An annual rail ticket is over £3,000,

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so you have to take that into account, but when you consider

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you can buy a freehold two-bed house for the price

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of a flat in London, Chatham starts to look very attractive indeed.

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A short walk from the train station,

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and I'm here to see a two-bedroom terraced property.

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The guide? Just £65,000-£70,000.

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It looks quite nice from the outside,

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with this traditional old brick work, like an old cottage.

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Let's see what it's like on the inside, though.

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Well, sadly, it's not bursting with so much character on the inside.

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No beautiful fireplace, artex ceiling.

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It's quite small, but you'd expect that from a cottage.

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A few little old details from the past. That's quite nice.

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Second reception room.

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Oh, dear.

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Damp everywhere. Look at this.

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Wallpaper just peeling off the walls.

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An exposed bit of brickwork here,

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but not of the type I would usually like to see.

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Look at the state of that. Now this wallpaper is, actually, SO wet.

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You can see the waterline along here. Not looking good.

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Certainly get that looked at.

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I'm just wondering where all this damp is coming from.

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Let's hope the kitchen is a bit more promising.

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No such luck. It's just as bad. Black mould and rotten wood work.

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And as for the cooker, well, you'll need to get scrubbing.

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# Grease is the word

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# It's got groove It's got meaning... #

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I'd like to get outside to the garden to check the roof,

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but there's no key available for access.

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I just hope whoever bought this was able to take a look.

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So far, not so great in this house that was guided at £65-£70,000.

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And upstairs it's more of the same.

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In the front bedroom, the walls are so damp that the wallpaper

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is removing itself.

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And it looks like the skirting has made a bid for freedom, too.

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Maybe they have made a pact to run away together.

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MUSIC: "Je T'aime, Moi Non Plus" by Serge Gainsbourg

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Couldn't blame them for wanting to escape the damp,

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but there's no running away for me.

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And here's bedroom number two.

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Not a bad size, but when you take into account the amount of work they've got to do on this place,

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I mean, it literally needs an overhaul.

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You've got peeling wallpaper up here, as well,

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and I'm still looking for that bathroom.

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Found it!

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Well, it's in a right old state.

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On first glance, you would even think there could have been a fire

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because it looks like fire damage, but it's not.

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It's definitely signs of damp.

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It really smells in here.

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It's not even poor ventilation because you can see,

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there's a fan, the window's open.

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It doesn't feel too wet in here

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and I'm looking for water coming through but I can't see any.

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I would get out on to that roof as soon as possible

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to check this place out.

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My other concern is how is bedroom one, the other room,

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going to access this bathroom?

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Time to get the thinking cap on.

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Because access to the only bathroom in the house

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through a bedroom is far from ideal.

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Well, I've thought of a solution.

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What you've got to do is turn the stairs around.

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If you put the stairs along this back wall here,

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that means bedroom one will be able to go into the room,

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walk along this little corridor here into the bathroom

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and bedroom number two will also be able to access the bathroom.

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So it makes both rooms independent,

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both can use the bathroom, and that, I think, is the way forward.

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We invited a local estate agent to come and look at the property

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and get her advice about possible layout changes for the house.

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What would she suggest?

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The new owner has two options and it really depends

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how much they want to spend.

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You have the option of turning the staircase,

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making a through lounge and altering the layout upstairs.

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Or a cheaper option would be to sort of put a corridor in between

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the two bedrooms so both have access to the bathroom.

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And what about the damp in the kitchen and bathroom?

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The kitchen needs some work. It needs a new kitchen, really.

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The bathroom, the whole lot needs looking at

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and perhaps the roof overhauling.

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So after refurbishment works are completed,

0:18:030:18:05

how much rental income could the house generate?

0:18:050:18:10

We would be able to let this out at around £575 per calendar month,

0:18:100:18:14

maybe pushing it to £595 per calendar month.

0:18:140:18:17

And the resale value?

0:18:190:18:21

I think if you did the minimum to it,

0:18:210:18:23

then you are going to be looking round about the £100,000 mark.

0:18:230:18:27

There are damp issues that need addressing here,

0:18:270:18:30

the roof may need repairing or replacing

0:18:300:18:33

and the only upstairs bathroom isn't really working for me.

0:18:330:18:36

So some serious reconfiguring is required.

0:18:360:18:39

Let's see who fancied this challenge as we head to auction.

0:18:390:18:43

Lot 31. Stunning looking little property, there.

0:18:430:18:46

No big problems, I would think.

0:18:460:18:48

Just the two walls to worry about, front and back. Freehold.

0:18:480:18:51

Start me where you will. £65,000?

0:18:510:18:54

Not much for a house, freehold house with vacant possession. 65.

0:18:540:18:58

I'm on the way. And seven, now.

0:18:580:19:00

Do I see? 67, I am looking for.

0:19:000:19:02

Are we all done, 67? Second row back.

0:19:020:19:04

68, 69 and 70. And two. Any of you, three?

0:19:040:19:07

72, can I say? At 70 to the lady.

0:19:070:19:11

72, 74. 74, 76.

0:19:110:19:13

76, 76, and eight.

0:19:130:19:17

77, then?

0:19:170:19:19

Go on, you've kept with it all this time. 77. 77.

0:19:190:19:21

78. 78. 79? No, definitely not.

0:19:210:19:25

At 79 in a fresh place. At 80 now, sir.

0:19:250:19:28

80, may I say, on the right hand side.

0:19:280:19:31

At 80 bid, I have. And 82.

0:19:310:19:33

82, may I say? 81, if you like.

0:19:330:19:36

81, may I hear? 81 and two.

0:19:360:19:38

82.

0:19:380:19:39

82, 82 and three? No.

0:19:390:19:43

At £82,000 bid I have got. 83, I'm looking for.

0:19:430:19:46

Are we all done at £82,000 then I will sell?

0:19:460:19:49

All done for the first time, a second time,

0:19:490:19:52

third and final time at £82,000 on my right hand side.

0:19:520:19:56

82. And the number, please?

0:19:570:19:59

That successful bid of £82,000

0:19:590:20:01

was made by Becky on behalf of her mum, Francis.

0:20:010:20:05

Francis, here on the left, works full-time as a nurse in a care home.

0:20:080:20:12

Her daughter Becky is on hand to help with this property.

0:20:120:20:15

It's the third one Francis and her husband have bought at auction.

0:20:150:20:18

They have two other buy-to-lets in Wales.

0:20:180:20:21

I met Francis and Becky back at the house.

0:20:210:20:25

Girls, congratulations. Well done.

0:20:250:20:27

Tell me about the auction, Francis.

0:20:270:20:29

It was petrifying because there were so many people there.

0:20:290:20:33

I've been to actions before where, you know,

0:20:330:20:35

sometimes there's only a handful of people and you think,

0:20:350:20:38

"Great, you've got a chance here."

0:20:380:20:40

But with so many people there, I thought,

0:20:400:20:42

"Oh, gosh. We haven't got a chance of getting a property here."

0:20:420:20:45

But it seems they stood just as good a chance as anyone else.

0:20:470:20:50

In fact, Francis was interested in bidding on four different properties

0:20:500:20:53

but she made a bit of a boo-boo with this one.

0:20:530:20:56

When it came to viewing it before the auction,

0:20:560:20:59

she only got as far as the front door.

0:20:590:21:01

My husband and I came round.

0:21:010:21:03

We looked through the letterbox and actually,

0:21:030:21:05

the black in the kitchen, we thought it was a hole!

0:21:050:21:07

So in actual fact, that is good.

0:21:070:21:09

It was quite a nice surprise that it wasn't a hole.

0:21:090:21:11

So you didn't even look at this property before you bid for it?

0:21:110:21:14

-No.

-You just looked through the letterbox,

0:21:140:21:16

thought it was a black hole and you are quite relieved to see it's actually a kitchen.

0:21:160:21:20

# I'll never know what you find

0:21:200:21:22

# When you open up your letter box tomorrow... #

0:21:220:21:25

It may not be a black hole but the black is damp,

0:21:250:21:29

which could create a black hole in Francis' budget.

0:21:290:21:32

What did you think when you first viewed this poverty?

0:21:340:21:38

It's a little bit disappointing with all the black in the kitchen

0:21:380:21:41

but I don't know if that just looks worse than it is.

0:21:410:21:44

But I don't know, it's not as bad as they one you had in Wales.

0:21:440:21:48

The first one we had was really, really very, very damp.

0:21:480:21:52

So the damp didn't deter Francis.

0:21:530:21:55

She released equity from her two Welsh properties

0:21:550:21:58

to finance the purchase of this house.

0:21:580:22:00

And as if the damp issue wasn't enough, after the auction,

0:22:040:22:07

Francis discovered the house is in a potential flood risk area

0:22:070:22:12

so she had to take out insurance against flooding, her first expense.

0:22:120:22:16

Potential flooding could affect the resale value in future

0:22:160:22:20

but to start with, Francis is planning to rent this house out.

0:22:200:22:22

So what's the grand plan, here?

0:22:250:22:27

What do you intend to do with this house?

0:22:270:22:29

What I would like to do,

0:22:290:22:31

which is different to what my eldest daughter and my husband want to do,

0:22:310:22:35

they just want us to come in, paint it up, do a kitchen

0:22:350:22:38

and a bathroom and just rent it, but I would like to move the stairs

0:22:380:22:45

down to outside the kitchen,

0:22:450:22:47

to go up that way, so that it's one room.

0:22:470:22:50

That's what my idea is,

0:22:500:22:52

because otherwise, you've just got two tiny rooms.

0:22:520:22:54

And then it would be quite nice to put a smaller bathroom upstairs

0:22:540:22:58

and create a third bedroom somehow.

0:22:580:23:01

May not be able to do it but it would be nice.

0:23:010:23:04

I think that would be fantastic, if you can do that.

0:23:040:23:07

If your budget will allow it.

0:23:070:23:09

What sort of budget have you got for this property?

0:23:090:23:12

Well, I thought 8,000.

0:23:120:23:15

If, you know, if we can get it done in six months,

0:23:150:23:18

we might be able to get 8,000.

0:23:180:23:21

We might have to go to 10,000, I don't know.

0:23:210:23:23

If Francis goes ahead to remove a wall,

0:23:240:23:27

change the stairwell and create a corridor and extra bedroom,

0:23:270:23:31

she may find that budget just a little tight.

0:23:310:23:34

And she still needs to get to the bottom of that damp.

0:23:350:23:39

Have you had a chance to get outside and look up on the roof

0:23:390:23:41

and see where that damp is coming from?

0:23:410:23:44

No, because there's no key to the back door.

0:23:440:23:47

The front of the roof looks good

0:23:470:23:49

so I can't believe that the back is going to be that bad.

0:23:490:23:52

Well, fingers crossed.

0:23:530:23:55

At least the house does have central heating and double glazing.

0:23:550:23:58

And Francis has her family on hand to help.

0:24:000:24:04

Becky, how are you going to be involved in this?

0:24:040:24:06

I'm going to have a sledgehammer

0:24:060:24:08

and basically take the stairs down and whatever walls need to go.

0:24:080:24:11

-Together, we're good at demolishing things.

-We are quite good.

0:24:110:24:15

-Girls, good luck with this.

-Thank you.

-Thank you.

0:24:150:24:20

Well, I'm glad to say this investment property

0:24:210:24:23

is closer to home for Francis and she's got Becky

0:24:230:24:26

and the rest of the family to help her turn this place around.

0:24:260:24:29

I've got a few worries, however.

0:24:290:24:31

Will that roof blow the budget

0:24:310:24:33

and will the flood risk wash away any hope of a resale?

0:24:330:24:36

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

0:24:360:24:40

Coming up, just how big is the flat in this Blurton block?

0:24:400:24:44

It might be a bit bigger if the corridors out there weren't so huge.

0:24:460:24:50

Back in Chatham, Becky's sledgehammer has come in handy.

0:24:510:24:55

She came down to help get the chimney breast down

0:24:550:24:58

and that was, you know, a big job.

0:24:580:25:01

But first, we return to Hartlepool

0:25:020:25:05

where Colin's had to tread carefully.

0:25:050:25:07

When we removed flooring, realised that some of it was rotten.

0:25:070:25:11

Earlier, we were in the north-east and seaport of Hartlepool,

0:25:170:25:21

were this two-bedroom mid-terrace house went on for auction.

0:25:210:25:25

It was bought for £28,000

0:25:250:25:28

by local man, Colin. He's an electrician and saw renovating this place

0:25:280:25:33

as a perfect time-filling project for when he was less busy on the electrical front.

0:25:330:25:38

I was looking more for an investment opportunity.

0:25:380:25:41

I've been looking on the market for some time.

0:25:410:25:43

I've actually tried to get into a couple of properties to buy,

0:25:430:25:47

but I've always been outbid.

0:25:470:25:49

-Right.

-So when this one came up, it was my lucky day.

0:25:490:25:52

I reckoned he had a good one here

0:25:520:25:55

because the house did have some lovely character features.

0:25:550:25:58

All it needed was cosmetic work

0:25:580:26:00

that Colin thought would only set him back £3,000 to £5,000.

0:26:000:26:04

We returned five months later to see if electrician Colin

0:26:040:26:08

had put the spark back into the place.

0:26:080:26:10

The boarded-up windows have gone,

0:26:110:26:14

and the lintel and stonework have been given a fresh new coat of paint.

0:26:140:26:17

Has Colin freshened up the inside?

0:26:170:26:20

I'd say so!

0:26:250:26:27

The two reception rooms have been redecorated with new flooring added.

0:26:270:26:30

Even with two new double doors separating the living

0:26:300:26:33

and dining areas, the room still feels spacious and light.

0:26:330:26:37

Colin has also added a fireplace which finishes off

0:26:370:26:40

the living room perfectly.

0:26:400:26:42

So, will that serviceable kitchen come up to standard?

0:26:420:26:46

We managed to hang on to the kitchen units,

0:26:470:26:50

which only needed a really good clean.

0:26:500:26:52

I've had to retile, all the electrics put in, cabinet lighting,

0:26:520:26:58

new ceiling lighting and a nice ceramic floor in,

0:26:580:27:01

which I'm really pleased about.

0:27:010:27:04

As they say, if it ain't broke, don't fix it.

0:27:040:27:06

But has anything been fixed upstairs?

0:27:060:27:09

With one eye on the rental market, Colin has gone ahead

0:27:110:27:14

and turned that large front bedroom into two new bedrooms.

0:27:140:27:17

One double and a single.

0:27:170:27:19

The rear bedroom has had a similar makeover

0:27:210:27:23

in the same neutral decor, all clean and fresh.

0:27:230:27:27

Let's hope it's the same for the bathroom.

0:27:280:27:30

So what we've done here, in the bathroom,

0:27:340:27:37

we've had a total refurb.

0:27:370:27:40

We've had a new bathroom suite fitted, new flooring,

0:27:400:27:43

and new tiling to two of the walls

0:27:430:27:48

and I'm really pleased with this room.

0:27:480:27:50

Well, there's a lot to be pleased about with the whole refurb

0:27:500:27:53

but it is not just about what has been added,

0:27:530:27:56

it's also great to see those attractive features

0:27:560:27:59

hauled back to life.

0:27:590:28:01

Colin did most of the work himself with help from the family

0:28:010:28:04

on the decorating side

0:28:040:28:06

and friends with some plastering and joinery work.

0:28:060:28:10

It's been a pain-free experience except for one small problem.

0:28:100:28:13

Downstairs in the rear dining room, when we actually started

0:28:130:28:16

to remove the flooring, we realise some of it had rotten

0:28:160:28:20

so we had to reinstate some of the floor joists

0:28:200:28:23

just to level the floor out.

0:28:230:28:25

But apart from that, no, it was easy going.

0:28:250:28:28

And though the rear yard still isn't anything to get excited about,

0:28:280:28:32

Colin has given the walls a lick of paint and fixed the dodgy drainpipe.

0:28:320:28:38

But he soon found that his time for the job was draining away, too.

0:28:380:28:42

It started off quite easy but then work picked up

0:28:440:28:47

so I had to fit it in and work weekends and evenings

0:28:470:28:51

just to push the project along.

0:28:510:28:52

Colin quickly found that his schedule had expanded

0:28:520:28:56

from three months to four-and-a-half, and the budget,

0:28:560:28:58

that £3,000 to £5,000 spend

0:28:580:29:00

was pushed to 6,000 due to the rotten joists in the dining room.

0:29:000:29:06

Add that six grand spend to his £28,000 purchase price,

0:29:060:29:10

and his total outlay so far is £34,000.

0:29:100:29:15

So, how does he intend to recoup the money?

0:29:150:29:19

Is the plan to rent it out as a long-term investment?

0:29:190:29:22

I've had interest where people want to rent the property,

0:29:220:29:26

but it depends if a buyer comes along and I get offered the right price.

0:29:260:29:29

And possibly, I would sell.

0:29:290:29:31

And that's a cue for two local estate agents

0:29:320:29:34

to come and see Colin's work and give us their thoughts

0:29:340:29:37

on this £34,000 investment.

0:29:370:29:40

I think he's done a good job. It's nice and bright.

0:29:420:29:45

What he's done has been presumably not too expensive

0:29:460:29:50

but it has made a difference to the property.

0:29:500:29:52

I think he's made some fairly significant improvements.

0:29:520:29:55

I quite like the flow of the house.

0:29:550:29:57

A couple of things I do like,

0:29:570:29:59

it is good to have an upstairs bathroom

0:29:590:30:01

off the half-landing and he has converted one of the big bedrooms

0:30:010:30:06

at the front into two bedrooms now, which always helps.

0:30:060:30:10

Has splitting that large bedroom affected the property's value?

0:30:100:30:14

Having divided the front bedroom into two hasn't greatly advanced

0:30:140:30:18

either the sale or rental value, it just makes it more appealing.

0:30:180:30:23

So how do the figures look? First as a rental.

0:30:230:30:26

I would estimate that this property would achieve

0:30:280:30:31

a rent of round about £450 per calendar month.

0:30:310:30:35

I would suggest a rental value of £450 per calendar month.

0:30:350:30:40

450 sounds good, if I can get that.

0:30:420:30:46

I think it is probably a little bit excessive

0:30:460:30:49

but if I could get that, I'd be quite pleased.

0:30:490:30:51

If those rental figures could be achieved,

0:30:510:30:54

Colin would be looking at a possible annual rental yield

0:30:540:30:58

of just under 16%.

0:30:580:31:00

Bearing in mind his total outlay of 34,000,

0:31:000:31:03

would selling it be more attractive?

0:31:030:31:06

I would recommend the vendor puts this on the market at £49,950,

0:31:070:31:13

with a view to achieving round about the £45,000 mark.

0:31:130:31:17

I would suggest it went on the market at £45,000.

0:31:170:31:22

Yeah, 45,000 is probably the top end I'd probably be looking for.

0:31:220:31:27

I'd also be quite pleased if I got 45,000.

0:31:270:31:30

That could give Colin a pre-tax profit of £11,000.

0:31:300:31:34

So, either way, there looks to be some money to be made here.

0:31:340:31:39

But for now, Colin aims to rent this house out,

0:31:420:31:46

until the resale market picks up.

0:31:460:31:48

He has a tenant lined up,

0:31:480:31:50

and will be charging £425 a month,

0:31:500:31:53

a fantastic yield of nearly 15%.

0:31:530:31:56

So, in all, it's not a bad start

0:31:560:31:58

on the renovation and money-making side of his first effort.

0:31:580:32:03

I'm really pleased. Quite happy with the way it's gone.

0:32:030:32:07

I've enjoyed working on the property.

0:32:070:32:09

If I can make some profit on it, it's a win/win situation.

0:32:090:32:13

I'm in Blurton, which literally means,

0:32:230:32:26

"village on a hill".

0:32:260:32:28

Once a small, rural community,

0:32:280:32:30

it's now more a suburb of nearby Stoke-on-Trent.

0:32:300:32:34

But still nestled in the beautiful Staffordshire countryside.

0:32:340:32:39

Distant views,

0:32:390:32:41

country walks, and hedgerows.

0:32:410:32:44

The property's actually located somewhere slightly less rural.

0:32:450:32:49

It's actually on the side of this fairly main road,

0:32:490:32:53

so traffic noise could be an issue.

0:32:530:32:55

In this block of flats, there's 30-odd one-bedroom flats,

0:32:550:33:00

and that's what was up for auction.

0:33:000:33:02

Had a guide price of 30,000 quid.

0:33:020:33:03

Oh, actually being by the side of the road maybe does have

0:33:030:33:05

one or two advantages.

0:33:050:33:07

Good transport links. Let's take a look inside.

0:33:070:33:10

The countryside on your doorstep, and yet only ten minutes' drive

0:33:120:33:15

to both the M6 and the centre of Stoke.

0:33:150:33:18

You certainly can't knock this location.

0:33:180:33:21

Even better news is there's off-street car parking

0:33:210:33:23

round the back,

0:33:230:33:25

where the main security door leading into the block is located.

0:33:250:33:29

So, up to the second floor.

0:33:290:33:31

A really important thing

0:33:310:33:33

when you're looking at buying a flat, particularly,

0:33:330:33:35

is to look at the communal areas.

0:33:350:33:38

Are they in reasonable condition.

0:33:380:33:40

You could end up paying to have them renovated if they're not.

0:33:400:33:43

In this case, they are.

0:33:430:33:45

I have to say, an absolutely massive staircase

0:33:450:33:47

and landing area, there.

0:33:470:33:49

But this is it.

0:33:490:33:51

So, how big is this one-bedroom flat?

0:33:510:33:55

It might be a bit bigger if the corridors out there weren't so huge.

0:33:550:33:58

Basically, it's all along here.

0:33:580:34:01

Bedroom, there. You have your kitchen here.

0:34:010:34:04

Then, working down this way,

0:34:040:34:06

bathroom needs a bit of tender loving care,

0:34:060:34:09

as does most of the flat, actually.

0:34:090:34:10

But it's not a bad size.

0:34:100:34:12

And then through to your living room.

0:34:120:34:14

It's very, well... compact.

0:34:140:34:16

But, looking around, not in a bad state.

0:34:160:34:20

And a couple of quite nice features.

0:34:200:34:23

Look at this fireplace. Marvellous.

0:34:230:34:26

This one-bedroom flat is in really good condition.

0:34:260:34:30

You can move in here as it is.

0:34:300:34:32

But if you spent just a little money,

0:34:320:34:35

the place could become a cracking home.

0:34:350:34:37

It's not the biggest one-bedroom flat I've seen,

0:34:370:34:40

but the layout is right, and there's certainly potential here.

0:34:400:34:43

A new kitchen and bathroom would really make a difference.

0:34:430:34:46

Replacing the single-glazing would help cut down the noise.

0:34:460:34:51

And, although all the windows look out across the road,

0:34:510:34:54

beyond that it's open countryside,

0:34:540:34:57

making quite a pleasant view.

0:34:570:34:59

We invited a local estate agent

0:34:590:35:03

to come and have a look at the flat

0:35:030:35:04

that was guided at £30,000,

0:35:040:35:06

and tell us more about the potential,

0:35:060:35:08

and how it might fit into the local property market.

0:35:080:35:10

The layout of the property is nicely compact,

0:35:140:35:17

and it's quite cosy - it's quite nice.

0:35:170:35:19

After a refurbishment -

0:35:190:35:21

maybe changing the bathroom and the kitchen -

0:35:210:35:24

how much could the flat be worth?

0:35:240:35:27

Once renovated, I believe that this property

0:35:270:35:29

will be worth £45,000.

0:35:290:35:31

And for a buy-to-let investor,

0:35:310:35:33

what rental income could it generate?

0:35:330:35:36

I believe this property would rent for £275 per calendar month.

0:35:360:35:40

I don't know what you think.

0:35:410:35:43

I think this one's a bit of a cracking property.

0:35:430:35:45

Realistic guide price. Good rental potential.

0:35:450:35:49

The flat doesn't need much doing to it. A great one to go for.

0:35:490:35:52

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

0:35:520:35:55

Lot 41. A second floor one-bedroom flat.

0:35:550:35:59

There's a communal parking area and garden.

0:35:590:36:02

So, lot 41.

0:36:020:36:03

What's this?

0:36:030:36:04

30 to start me?

0:36:040:36:06

25, then? Start me at 25, then, somebody.

0:36:060:36:08

25 bid, thank you.

0:36:080:36:09

At £25,000.

0:36:090:36:11

30 going to say? Bid's at £25,000.

0:36:110:36:13

Got you. £26,000.

0:36:150:36:17

At 27? 27.

0:36:170:36:19

28.

0:36:190:36:21

29. 30?

0:36:210:36:23

30.

0:36:250:36:26

31?

0:36:260:36:27

No? At £30,000. Thank you.

0:36:270:36:31

31.

0:36:310:36:33

32.

0:36:330:36:34

33, sir? 32.5.

0:36:340:36:37

33.

0:36:370:36:39

33.5.

0:36:390:36:41

34? No?

0:36:410:36:43

34, anywhere else?

0:36:430:36:45

34 with you, sir. First bid.

0:36:450:36:46

Another 500 anywhere else?

0:36:460:36:50

At £34,000, then, for the first time.

0:36:500:36:52

At 34,000,

0:36:520:36:55

for the second time.

0:36:550:36:57

Third and final time at £34,000. Are we all done?

0:36:570:36:59

You've all won. Well done.

0:37:000:37:03

That final, successful bid of 34,000

0:37:030:37:05

was made by Paul, who was at the auction

0:37:050:37:08

with his wife, Lynn.

0:37:080:37:10

Paul owns a kitchen and bathroom-fitting company.

0:37:100:37:12

he's also a part-time property developer,

0:37:120:37:16

and for this flat, he travelled some distance.

0:37:160:37:20

MUSIC: "A Long Way Home" by Dwight Yoakam.

0:37:200:37:24

I met up with him back at his new purchase,

0:37:240:37:26

to find out just what it was that appealed to him.

0:37:260:37:29

Paul, great to meet you!

0:37:290:37:32

-Congratulations.

-Hi, Martin.

0:37:320:37:34

Tell me why you wanted to buy the flat.

0:37:340:37:36

Primarily, I do buy properties at auction.

0:37:360:37:40

-This is my fifth property...

-Oh, great!

0:37:400:37:43

..no, sixth, actually. Sixth properties at auction

0:37:430:37:46

-You've had so many, you lose count.

-Yeah, that's it.

0:37:460:37:49

Primarily, we buy up north,

0:37:510:37:55

to get a better return.

0:37:550:37:57

-But don't live here?

-No.

0:37:570:37:58

-Where do you live?

-Maidenhead, in Berkshire.

0:37:580:38:00

-Good grief. So, quite a long trek away.

-Yes.

0:38:000:38:04

Is it that yield factor which has brought you up north?

0:38:040:38:07

It is, because - as you well know - the cost of properties in the south,

0:38:070:38:11

the return you get is nowhere near what you can get

0:38:110:38:15

-further north.

-Right. Give me an exact example?

0:38:150:38:19

Well, for what you're purchasing a property up here, I'd have to buy

0:38:190:38:23

four properties up here

0:38:230:38:25

for the price of a property in Maidenhead.

0:38:250:38:28

-So it's four times as much?

-Yeah.

0:38:280:38:29

-And you certainly wouldn't get four times as mush rent.

-Exactly.

0:38:290:38:32

Does it make managing properties a little more trick?

0:38:320:38:36

I'm quite lucky that I've got my own kitchen and bathroom business.

0:38:360:38:40

Oh, great.

0:38:400:38:42

But obviously, I don't come up here to do all of that.

0:38:420:38:45

I've got a couple of colleagues.

0:38:450:38:48

I've got an excellent carpenter and plumber.

0:38:480:38:51

And electricians, and the rest of the trades I've made contact with,

0:38:510:38:57

since I've been doing this.

0:38:570:38:58

In terms of managing the properties -

0:38:580:39:00

as well as restoring and renovating them -

0:39:000:39:02

do you have an agent locally? Is that how it works?

0:39:020:39:05

I use an agent for finding the tenants,

0:39:050:39:08

and after that look at looking after it ourselves.

0:39:080:39:10

My carpenter/plumber does all the maintenance work, as well.

0:39:100:39:15

I still do some of the work myself.

0:39:150:39:18

I'll come and strip the walls,

0:39:180:39:19

and stick a coat of paint on the walls and ceilings, etcetera.

0:39:190:39:23

But the main fitting of kitchens and bathrooms,

0:39:230:39:26

I leave to my colleague.

0:39:260:39:29

For long distance developer Paul,

0:39:360:39:38

flats are his main target.

0:39:380:39:41

He prefers them to houses, as he can usually obtain a better return

0:39:420:39:45

on the capital he's invested.

0:39:450:39:47

And there's often less work to do.

0:39:470:39:49

So, despite this flat being in pretty good condition,

0:39:490:39:51

will he and his colleague be giving it a spruce up?

0:39:510:39:55

So, what's the plan? What are you going to do?

0:39:570:39:59

Kitchen and bathroom both need doing.

0:39:590:40:03

This is the only ceiling that's got Artex on it.

0:40:030:40:05

So we'll skim that, strip the walls.

0:40:050:40:08

Undecided about the fireplace.

0:40:090:40:12

It's a bit unusual to have in a flat,

0:40:120:40:15

but it's a feature.

0:40:150:40:16

It's not my cup of tea,

0:40:160:40:17

but I think I may end up leaving it.

0:40:170:40:21

And then decorate throughout, so it's ready for renting.

0:40:210:40:25

Being in the trade, how much do you pay

0:40:250:40:26

for a bathroom and a kitchen?

0:40:260:40:28

-Some very good prices.

-Come on!

0:40:280:40:30

Spill the beans!

0:40:300:40:32

You know, Martin,

0:40:320:40:35

it's down to the context that you've got,

0:40:350:40:37

and whose arm you can twist.

0:40:370:40:39

So, if you twist somebody's arm particularly strongly,

0:40:390:40:42

how much will the bathroom and kitchen be?

0:40:420:40:44

This time of year, you could get some excellent deals.

0:40:440:40:47

I don't expect to pay more than £1,000

0:40:480:40:52

for the kitchen, including the appliances.

0:40:520:40:55

The bathroom?

0:40:550:40:56

Probably half that.

0:40:560:40:58

So, that's about £1,500 on a new kitchen and bathroom,

0:40:580:41:02

out of Paul's total budget of 5,000 to 6,000.

0:41:020:41:06

He plans to replace the windows from that budget, as well.

0:41:060:41:10

He set a timescale of six weeks

0:41:100:41:12

to get the place ready for rental.

0:41:120:41:16

I'm not going to be able to spend as much time up here,

0:41:180:41:20

so my colleague is going to be getting on with it,

0:41:200:41:23

and I'm going to pop up -

0:41:230:41:25

probably over some weekends-

0:41:250:41:26

to do some of the painting.

0:41:260:41:28

-Right. And then it's get a tenant in?

-That's it.

0:41:280:41:31

And build the portfolio - is that the plan?

0:41:310:41:34

Yes.

0:41:340:41:36

I'd like to get into double figures as soon as possible,

0:41:360:41:39

so back at the next auction.

0:41:390:41:41

Sticking to this area?

0:41:410:41:43

Yes, cos it gives a good return.

0:41:430:41:45

Ideally, I'd love to do it further south,

0:41:450:41:50

but the return just isn't there.

0:41:500:41:52

Good luck with that. Congratulations.

0:41:520:41:55

-Thank you, Martin.

-We'll see how you get on.

-Cheers.

0:41:550:41:57

Paul certainly seems to know

0:41:570:41:59

what he's doing with his property investments,

0:41:590:42:02

travelling all the way from the south to the north

0:42:020:42:04

to get this flat, and I can understand why.

0:42:040:42:07

How will he get on sorting it out?

0:42:070:42:09

He's got the expertise, and he's got a man who can,

0:42:090:42:12

so what could go wrong? Well, you never know.

0:42:120:42:14

You can find out later in the show.

0:42:140:42:16

It's always very expensive to put things off until tomorrow,

0:42:180:42:22

but time is money, and delays can be very expensive.

0:42:220:42:25

Have our buyers been busy, or have they let the grass grow

0:42:250:42:28

under their feet?

0:42:280:42:30

Let's find out.

0:42:300:42:31

We return now to Chatham, in Kent,

0:42:330:42:36

where earlier in the programme, Frances - a full-time nurse -

0:42:360:42:40

and her husband, Ron,

0:42:400:42:42

bought this very damp mid-terrace house

0:42:420:42:44

for £82,000.

0:42:440:42:46

It was their third investment property.

0:42:460:42:49

And Frances' daughter Becky, who is a teacher,

0:42:500:42:52

was going to lend a hand with the refurbishment.

0:42:520:42:56

They planned to rent it out when the work was finished.

0:42:560:43:01

What's the grand plan here? What do you intend to do

0:43:010:43:04

with this house?

0:43:040:43:05

What I would like to do, which is very different to what

0:43:050:43:09

my eldest and my husband want to do...

0:43:090:43:11

They just want us to come in,

0:43:110:43:14

paint it up, do the kitchen and the bathroom,

0:43:140:43:17

and just rent it.

0:43:170:43:19

I'd like to move the stairs

0:43:190:43:21

down to outside the kitchen, to go up that way,

0:43:210:43:24

so that it's one room.

0:43:240:43:26

They'd set a budget of 8,000 to 10,000,

0:43:260:43:29

and a timescale of six months.

0:43:290:43:32

Well, there must have been a delay,

0:43:320:43:35

because it's now almost 18 months later...

0:43:350:43:38

..when we meet up with Frances once more.

0:43:390:43:43

The house now has a smart, black front door,

0:43:450:43:47

but the original windows have been retained.

0:43:470:43:50

At the back of the house, the damp has been cured in the kitchen.

0:43:520:43:56

It's now a light room, with new units and appliances,

0:43:560:44:01

and where the damp was at its worst,

0:44:010:44:03

a new boiler has been installed.

0:44:030:44:07

At the front of the house, the dividing wall between the two rooms

0:44:090:44:12

has been removed, creating a large, open-plan living area.

0:44:120:44:16

They've taken out the chimney breasts from both rooms.

0:44:190:44:22

And the staircase has been relocated,

0:44:240:44:26

from between the two former reception rooms, to the side

0:44:260:44:29

of the open-plan living area.

0:44:290:44:31

It certainly looks as if they've followed Frances' plans.

0:44:330:44:38

Well, the stairs used to be here -

0:44:380:44:41

just sort of this space, really.

0:44:410:44:44

That was quite a small lounge.

0:44:440:44:47

And a bigger back room, actually.

0:44:490:44:51

And now, we've just put them here.

0:44:510:44:53

We've changed the layout upstairs.

0:44:530:44:55

Just moving the stairs, I think, has made a huge difference.

0:44:550:44:59

It has indeed,

0:44:590:45:01

because the layout upstairs has really benefitted, too.

0:45:010:45:04

The front bedroom is now accessed from a new landing.

0:45:080:45:13

The back bedroom is a little smaller,

0:45:130:45:16

to accommodate the new landing.

0:45:160:45:19

But the benefit is you can now reach the bathroom,

0:45:190:45:23

without having to go through the second bedroom.

0:45:230:45:25

And the new white suite looks great!

0:45:280:45:32

The black mould and damp, I was so worried about here,

0:45:340:45:36

and throughout the house,

0:45:360:45:38

turned out to be a condensation problem.

0:45:380:45:41

And, although it was at its worst in the bathroom,

0:45:410:45:45

it looked like it had caused problems everywhere.

0:45:450:45:48

I think in the bathroom it looked worse,

0:45:480:45:51

because there was no insulation in the roof.

0:45:510:45:53

So, if you had a hot bath,

0:45:530:45:55

the heat of the steam hit the roof,

0:45:550:45:58

and you had all this condensation.

0:45:580:46:00

So we've insulated that roof,

0:46:000:46:04

and got a full ceiling in it.

0:46:040:46:07

We couldn't get out to the garden before,

0:46:100:46:12

but there's a lovely outside space.

0:46:120:46:14

The project has taken longer than expected.

0:46:140:46:17

Frances works full-time,

0:46:170:46:19

and she and her husband, Ron, have also moved house.

0:46:190:46:22

Although Ron did the plumbing, and they've both done the decorating,

0:46:220:46:25

it's had to be mainly in the evenings and weekends.

0:46:250:46:27

But what about daughter Becky?

0:46:270:46:30

Did she lend a hand, as planned?

0:46:300:46:32

Becky, obviously, was quite involved early on.

0:46:340:46:37

She came down quite a few times,

0:46:370:46:39

to help get the chimney breast down,

0:46:390:46:43

and that was a big job.

0:46:430:46:44

Then, basically, this year

0:46:440:46:47

she's helped with painting.

0:46:470:46:49

And how has the budget fared?

0:46:500:46:53

Did Frances stick to that 8,000 to 10,000?

0:46:530:46:57

The budget, up-to-date, has went to 22,000,

0:46:570:47:01

but we still think we have another couple of thousand,

0:47:010:47:04

for the flooring,

0:47:040:47:06

and some more painting on the outside.

0:47:060:47:09

Frances and Ron paid £82,000 for the house.

0:47:090:47:12

Their spend is likely to end up

0:47:120:47:15

around £24,000.

0:47:150:47:17

They overspend was because they followed

0:47:170:47:19

Frances' plans to move the stairs.

0:47:190:47:22

It takes their total outlay to around 106,000.

0:47:220:47:27

Time to hear what two local estate agents think of the finished result.

0:47:290:47:34

I love the way they've done the property with the staircase.

0:47:340:47:37

Most Victorian properties have the staircase going through the middle,

0:47:370:47:40

which uses up so much room.

0:47:400:47:42

They've taken away the chimney breasts,

0:47:420:47:44

and used it the best it can be used in a Victorian house.

0:47:440:47:46

I think moving the staircase has given a proper landing upstairs.

0:47:460:47:51

Also now, you have two good-sized bedrooms,

0:47:510:47:53

and a lovely-sized bathroom.

0:47:530:47:55

so it gives it that really nice, big feel about the house.

0:47:550:48:00

I like neutral colours, normally, in houses,

0:48:000:48:02

as it's my job to sell them.

0:48:020:48:03

But the kitchen, as it's open-plan,

0:48:030:48:05

with the dining room and the lounge,

0:48:050:48:07

it's nice to see a bit of colour through there.

0:48:070:48:10

What about the numbers?

0:48:100:48:11

Is the property now worth more than the 106,000 they've invested here?

0:48:110:48:16

If I was going to put this property on the market,

0:48:160:48:18

I'd be looking at marketing it around

0:48:180:48:20

£110,000 to £115,000 for the property

0:48:200:48:25

At the moment, I'd market it in today's market at 114,995 -

0:48:250:48:28

in order to achieve £110,000 upwards.

0:48:280:48:31

Those valuations could generate a potential gross profit

0:48:310:48:35

of between £4,000 and £9,000.

0:48:350:48:38

Minus the usual selling fees,

0:48:380:48:41

after 18 months.

0:48:410:48:44

That's better than we thought,

0:48:440:48:45

because we thought we might just break even.

0:48:450:48:48

Although we're still not going to sell. We want to wait, and rent it.

0:48:480:48:53

How much can the experts

0:48:530:48:56

see local tenants paying for this?

0:48:560:49:00

If I was going to rent this property out, I'd be looking at between

0:49:000:49:03

£575 per calendar month,

0:49:030:49:06

to somewhere around £595 per calendar month.

0:49:060:49:10

Rentings at the moment are quite easy.

0:49:100:49:12

You'd get £525 to £550, per calendar month.

0:49:120:49:16

That's a potential yield of between 6% and 7%.

0:49:160:49:20

Which makes renting the wise thing to do here.

0:49:200:49:23

Is Frances happy with that?

0:49:230:49:25

Obviously, the top amount is better!

0:49:250:49:29

SHE LAUGHS

0:49:290:49:30

It's more than we thought, actually,

0:49:300:49:33

so that's good.

0:49:330:49:35

Getting this, their third investment property

0:49:350:49:38

ready to rent out

0:49:380:49:40

had dragged on a bit,

0:49:400:49:42

which for any buy-to-let investor is not ideal.

0:49:420:49:45

Is Frances pleased with the end result?

0:49:450:49:47

It's been hard work - and it's been a lot longer than the others,

0:49:490:49:52

but now you can see the end product,

0:49:520:49:55

and once we've done the garden and that, it'll be nice.

0:49:550:49:58

A nice house for someone.

0:49:580:50:00

Earlier in the programme, in Blurton, Stoke-on-Trent,

0:50:040:50:07

a second floor one-bedroom flat in this block

0:50:070:50:11

was bought for £34,000 by Paul.

0:50:110:50:13

It took his buy-to-let portfolio to seven.

0:50:130:50:15

He owns his own kitchen fitting business in Maidenhead,

0:50:150:50:20

but has concentrated his property portfolio

0:50:200:50:22

in the Stoke area, where he can get a better rental return.

0:50:220:50:26

Does it make managing the properties trickier?

0:50:290:50:32

I'm quite lucky that I have my own kitchen and bathroom business.

0:50:320:50:36

Oh, great.

0:50:360:50:37

But obviously, I don't come up here to do all of that.

0:50:370:50:40

I've got an excellent carpenter and plumber,

0:50:400:50:43

and electricians, and the rest of the trades I've made contact with

0:50:430:50:46

since I've been doing this.

0:50:460:50:48

Seven weeks had passed when we returned to Blurton,

0:50:510:50:55

and met up again with Paul to see the finished flat.

0:50:550:50:57

The hallway has retained the red door,

0:50:570:51:01

but the carpet and walls have been toned down.

0:51:010:51:04

The fireplace remains in the living room,

0:51:040:51:08

and this feature wall is certainly blooming!

0:51:080:51:12

New windows have been installed throughout the flat.

0:51:140:51:17

No surprises that the kitchen looks great,

0:51:180:51:21

with replacement units, sink and window.

0:51:210:51:24

Next door, in the bathroom,

0:51:280:51:30

there's further improvement.

0:51:300:51:32

We've done a huge amount of work in the bathroom.

0:51:320:51:35

We had an old, white cast-iron bath,

0:51:350:51:39

with two taps in the corner.

0:51:390:51:41

We've replaced that now with a stand-in shower.

0:51:410:51:44

But that wasn't the only thing.

0:51:440:51:47

On this wall,

0:51:470:51:48

the panelling that came along this wall,

0:51:480:51:52

stood out about four or five inches.

0:51:520:51:55

Behind that panelling, and in the kitchen,

0:51:550:51:57

were two massive water tanks.

0:51:570:51:58

In order to get the shower in,

0:51:580:52:00

we had to take all of that out.

0:52:000:52:02

So, as you can see,

0:52:020:52:04

it's made it a lot bigger.

0:52:040:52:06

I'm really pleased with the way it's turned out.

0:52:060:52:08

Much more roomy.

0:52:080:52:10

Got a tremendous shower in there.

0:52:100:52:13

And it's something that I'd enjoy coming in to.

0:52:130:52:16

Yes, the tiling and white appliances really look great.

0:52:180:52:22

Along the corridor, the bedroom has new carpets and a colour scheme.

0:52:260:52:29

But the bedside cabinets have been reused.

0:52:320:52:35

But what were the main issues in the living room?

0:52:350:52:38

The major thing in this room was the ceiling,

0:52:380:52:42

which was Artex-ed.

0:52:420:52:43

I got hold of a local plasterer

0:52:430:52:46

He came in and did the ceiling.

0:52:460:52:48

I kept the fireplace,

0:52:480:52:51

cos I thought, "Why rip it out? It looks good. Does the job".

0:52:510:52:55

But if you intend to keep an existing fire,

0:52:550:52:58

you must check that it meets electrical safety regulations.

0:52:580:53:03

Paul reused the oven in the kitchen.

0:53:030:53:06

He got it checked out and it was fine,

0:53:060:53:09

but he did install a new water heater to provide instant hot water.

0:53:090:53:12

Surely that sounds a bit of an expensive luxury?

0:53:120:53:15

The cost of the unit was £140.

0:53:180:53:21

To be quite honest,

0:53:210:53:23

the scrap value of the copper and brass we've taken out

0:53:230:53:27

probably paid for it.

0:53:270:53:30

MUSIC: "Brass in Pocket" by The Pretenders

0:53:300:53:32

Paul travelled up from Maidenhead to do the initial work on the flat,

0:53:360:53:40

but then had to concentrate on his kitchen business.

0:53:400:53:43

So the two local qualified tradesmen he uses did the rest.

0:53:430:53:46

And a third colleague travelled up from the south

0:53:460:53:49

to do the decorating.

0:53:490:53:51

With his trade contacts,

0:53:510:53:53

Paul sourced some good bargains.

0:53:530:53:55

But, once the labour cost had been added,

0:53:550:53:57

plus the replacement windows,

0:53:570:53:59

did he stick to his £5,000 - £6,000 budget?

0:53:590:54:02

We spent a little more than that,

0:54:050:54:08

because we've had extra work to do.

0:54:080:54:10

So, I've spent just a fraction over £7,000.

0:54:100:54:14

Still, not bad.

0:54:140:54:16

With his £34,000 purchase price, it takes the total to £41,000.

0:54:160:54:22

Time to hear the opinions of two local property experts.

0:54:220:54:27

My first impression is that he's done a very nice job

0:54:280:54:31

with quite limited space.

0:54:310:54:33

The bathroom looks really nice.

0:54:330:54:35

It was a good idea to put the shower in,

0:54:350:54:37

rather than compromise the space by trying to fit a bath in,

0:54:370:54:40

so he's done a good job.

0:54:400:54:41

What I particularly like about the kitchen

0:54:410:54:44

is the fact he's taken the time and trouble

0:54:440:54:46

to remove the water tanks

0:54:460:54:47

that were taking up a lot of valuable space.

0:54:470:54:51

The kitchen's great, again with that extra space.

0:54:510:54:53

It's really enabled him to put in extra storage,

0:54:530:54:55

so that will really appeal to people, I'm sure.

0:54:550:54:58

The property will appeal

0:54:580:55:00

to single renters, because of the security aspect.

0:55:000:55:03

Second floor, security doors.

0:55:030:55:05

As well as sharers, as well.

0:55:050:55:08

How much could the flat achieve if it was sold on -

0:55:080:55:13

more than the £41,000 Paul has spent on it?

0:55:130:55:16

If we were going to put the property up for sale,

0:55:160:55:19

we'd probably market it around the £45,000 mark,

0:55:190:55:23

to get as close as possible.

0:55:230:55:24

If we were marketing this property, we would look for an asking price

0:55:240:55:27

of £47,500.

0:55:270:55:30

That would produce £4,000 to £6,500 gross profit,

0:55:300:55:35

before the usual expenses.

0:55:350:55:37

Is that the sort of valuation Paul had expected?

0:55:370:55:40

I thought it would be round about 50-ish.

0:55:400:55:44

But it doesn't surprise me.

0:55:440:55:47

But Paul's always planned

0:55:470:55:49

to rent it out for his buy-to-let portfolio.

0:55:490:55:51

So, what income could he achieve?

0:55:510:55:55

For rental,

0:55:550:55:56

the property would achieve about £375 per calendar month.

0:55:560:56:00

I would suggest a rent per calendar month of £375.

0:56:000:56:05

That makes a yield of around 11%, based on those estimates.

0:56:050:56:11

375? Pretty good.

0:56:110:56:13

That's more than they normally get here.

0:56:130:56:17

But they're not to this standard.

0:56:170:56:19

So, yeah, I'm pleased with that.

0:56:190:56:20

So Paul's decision to build his portfolio around Stoke-on-Trent

0:56:220:56:27

looks to be paying dividends.

0:56:270:56:28

What advice would he give other prospective developers?

0:56:280:56:33

Take a good look at the property.

0:56:330:56:35

Keep what you can,

0:56:350:56:37

as long as it's worth keeping,

0:56:370:56:38

and make sure you do a good job.

0:56:380:56:43

Because at the end of the day,

0:56:430:56:44

I think you get a good tenant in return.

0:56:440:56:46

Join us next time for more riveting properties

0:56:480:56:51

being sold under the hammer.

0:56:510:56:53

Yes, no two stories are ever the same -

0:56:530:56:54

so, for more flats, maisonettes and houses,

0:56:540:56:57

we'll see you next time.

0:56:570:56:58

-Goodbye!

-Bye!

0:56:580:57:00

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