Episode 62 Homes Under the Hammer


Episode 62

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Transcript


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-Hello and welcome to the show.

-Now, sometimes the property market

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is going well, other times, it's not doing too well.

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But whatever the situation,

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you've got to make sure you've bought yourself a wise investment.

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One way you could do that is to visit your local auction house.

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Buy a home under the hammer.

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It doesn't matter what kind of property you are looking for,

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you should be able to find it at the auctions.

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Here's how our buyers spent their money on today's programme.

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I visit a four-bed semi on the Cumbrian coast.

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The best thing by far is that out of every bedroom window you've got a view of the sea.

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This Kent cottage is setting my heart on fire.

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I absolutely love it.

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This chimney breast is what makes this room so special.

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And in Derby, this house has me hitting high notes

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country and western fans will recognise.

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HE SINGS

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All these properties were sold at auction.

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

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when they went under the hammer.

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This is Whitehaven, once the third largest port in the world.

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The grand Georgian buildings give us a glimpse of the port's opulent past

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as a major route for the coal and rum industries.

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So, what will today's property here be like?

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Today, I'm in the little village of Parton just outside Whitehaven in Cumbria.

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As you can see, there are some spectacular views out across the railway line to the sea.

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And bracing coastal walks and on a clear day,

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some beautiful sunsets across the Solway Firth.

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These Parton properties enjoy great views.

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The estate is well laid out on this spectacular spot.

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Who wouldn't enjoy commuting to work on this train route?

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Just a few minutes from Parton railway station with its links

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to Carlisle and other parts of Cumbria,

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here is the property I am here to see.

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It is a four-bedroom semi-detached.

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Guide price was £50,000-£60,000, which, for a house that's got a decent front and back garden,

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and looks in half-decent condition, isn't half bad.

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The rendering repairs need a bit of attention but the windows look OK.

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What's it like inside?

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OK, through the front door, stairs and two bedrooms

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and then into an absolutely enormous lounge.

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It's got two windows, a fireplace. Fantastic, what else is there?

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Downstairs loo, it would be great if it was an additional loo but unfortunately it's the only one.

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It is separate. You've got the bathroom there and the loo there.

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In an ideal world, you would want it upstairs.

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Through here to the kitchen and continuing the theme of an extremely large house,

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a good-sized kitchen.

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You might think of putting double doors out into the garden.

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You're going to have to replace the units.

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Loads of space. A really good feel to this one.

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# Cos it feels good

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# Having it real good for a while. #

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That guide price of £50,000-£60,000 makes me feel good too.

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The house doesn't appear to need much work, which is great news if you want to rent it out.

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That could mean a quick turnaround and a quicker return.

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Fingers crossed the story is the same upstairs.

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Up here, it's a shame you haven't got the bathroom and loo

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but what you have got are four good-sized bedrooms.

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One, two, three, four. Very simple layout,

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short corridor here and then all the bedrooms go off it.

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The best thing by far is that out of every bedroom window

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you have got a view of the sea.

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Time to look outside the property to see if that's looking as promising.

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One thing to look out for with any kind of property that is covered in rendering

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is what condition that is in.

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A good way to tell is if you hit it, listen to this.

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That sounds hollow and it has blown out underneath there.

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There are signs of cracking in various places.

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That needs to be investigated. Bit of a down side.

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The good news is that as well as the front garden, you have got this little area at the back.

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The property sits on a pretty decent size plot.

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Pebbledash or roughcast was designed to be better

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at facing the elements than a flat surface.

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But here, it has taken a bit of a battering over the years.

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So, you need to factor in some funds for its repair.

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We invited a local estate agent to give us

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her opinion on this four-bedroomed house.

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If this was my property, I would try and put the bathroom upstairs.

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You'd still have three good-sized bedrooms.

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Make your bathroom as it is now into an utility

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and keep the downstairs toilet and possibly build a conservatory out on the back.

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That would make a lot of sense but means a lot of added cost.

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If the house was just given a refurbishment,

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what could it sell on for?

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Once renovated, I think the property is probably going to achieve £115,000- £120,000.

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What could be the potential valuation if the bathroom was moved and a conservatory added?

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You are probably talking of a total value of about £130,000.

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You would have to subtract your build costs from that £10,000 increase in valuation.

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How much could you let for in its current layout?

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In the rental market,

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you would probably be getting about £450 to £475 per calendar month.

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And as a three-bedroom with an upstairs bathroom?

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For rental, you're probably talking about £500 per calendar month.

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A bit of work to be done to sort this one out, particularly on the rendering.

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What you have got here is a lot of property for the money.

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

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A semi-detached house located close to Whitehaven,

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large lounge and a dining kitchen,

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ground floor bathroom and separate WC.

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£50,000-£60,000 guide.

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Start me at 50 someone. We are in at 50.

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At £50,000 I'm bid. Taking once, 51 I've got.

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52. At 52, I am bid. £52,000.

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£52,500, 53. 53, I've got, and a half.

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At £53,500. 54. Shaking the head.

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It is with you at £53,500. 54 anyone?

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At 54, 54.5. 55, shaking the head. 55.

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55 I have got. And a half. You are out.

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It's with you again at 55. At 55 I am bid.

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At 55, we are in the market at £55,000.

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First time then, let's force it. Second time, £55,000 all done, all out.

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Selling away. You sir, thank you.

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That successful bid of £55,000 was made by nuclear power plant worker Tony

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and his wife Lisa, who's a catering assistant.

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They bought it for themselves so they can move out of their current rented accommodation nearby.

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They plan to live here while they build their dream home.

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-Tony, great to meet you.

-Nice to meet you.

-Congratulations.

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-Thank you.

-Big house.

-Yes, it is.

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We were surprised when we first walked in and saw it.

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-Why did you want to buy it?

-About 21 months ago, we bought a plot of land

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about four miles down the coast.

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We are having a bit of trouble with planning so we are in rented accommodation.

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We thought, we'll buy something that's going to be our own until we get sorted

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because it's dead money we're spending.

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We thought we'd buy somewhere, do it up and at the end, we'll sell it.

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What's the sticking point?

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They said size, over dominating, doesn't match the surrounding dwellings.

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Hopefully, the plans are in now, we've been waiting six weeks.

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Hopefully, we should hear and we can get on with that.

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Tony, Lisa and their two children plan to make this their temporary home.

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What makes this place an ideal stopgap until their new house is built?

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It doesn't need a lot doing to it and just a bit more room.

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We've got things in storage as well so we can take one of the bedrooms for a storage room.

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Just save money because we are shelling out money.

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-What are the plans for it?

-New windows, new kitchen.

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Knock the toilet and the bathroom together, just cosmetic really.

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-Any plans to move that upstairs?

-No, we are going to leave it as a four-bed.

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We think it's a better selling point. We thought about it

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and then we thought, no, we'll leave it as it is.

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This house presents an interesting dilemma for Tony.

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He'll obviously want to make it comfortable for his family to

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live in, but as the plan is to move into their new home once it's

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built, he doesn't want to invest too much time or money on this one.

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But there are some things outside he can't leave alone.

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One issue I noticed was that some of the rendering looks like it's blown a bit.

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Yes, it has. On the back and the side.

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The gable end.

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The bank sent the surveyor out and they drilled holes in the wall.

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They said the wall ties are showing signs of deterioration.

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-The wall ties?

-Yes. So we're getting them fixed. Chip all the dash off.

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We'll take these two windows off,

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put one big bay window in the front to give it a lift and a freshen up.

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-What's the budget?

-About £15,000.

-And the timescale for doing it?

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-Eight weeks. Hopefully.

-Who's going to do the work?

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I'll just get contractors in to do it.

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-Get on with it and get the family in here.

-Yeah.

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We'll do the stripping. The kids will want to have a go with the scrapers.

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We'll try to get it done as fast as poss.

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-Congratulations.

-Thanks very much.

-Good luck with it.

-Thank you.

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-I look forward to seeing how you get on.

-Spot on.

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It may only be a temporary home until he gets the planning

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permission sorted on his other property.

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I think Tony's got himself a really good house here

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and he's set himself a realistic budget to sort out those issues including the wall ties.

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How will he and his family get on? You can find out later in the show.

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This is Faversham in Kent and if you're after a sense of history,

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you've certainly come to the right place.

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It's a town that's ram-packed with medieval buildings.

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Even the most historical towns have to embrace change

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and the new high-speed rail link has certainly put Faversham on the map.

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From here, London is just an hour away so it's perfect

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if you need to commute.

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Yes, the rail link has made the daily commute less of a chore.

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That's assuming you have a commute, of course.

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If you're lucky enough to work in the town,

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you can just stay put and enjoy all that Faversham has to offer.

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A short walk from the town and the train station and I'm here to see

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a property that was on the market with a local agent for £160,000.

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It went to auction for a much lower price - just £110-120,000

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and that sets alarm bells ringing in my head.

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What's the reason for the significant price drop?

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There's only one way to find out and it's down this little lane here.

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Look at this. It's all so pretty.

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Something that might put the potential buyer off is that

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there's a property there which means that this area is shared access.

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Look at the house. You can just imagine roses around the door.

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It's so pretty.

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The last house that sold on the road right beside the cottage

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achieved a whopping £325,000.

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That gives you some idea of the calibre of the properties

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in the immediate area.

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OK, so it's not the largest cottage in the world,

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but it's got a wonderful feeling as soon as you step inside.

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A little snug kitchen over there which needs a rethink.

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New units, some stairs going up and you've got this reception room here.

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Some might think you walk straight into the fireplace

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but I absolutely love it.

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This chimney breast is what makes this room so special.

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You can imagine it in the winter time all snug

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and a lovely fire blazing.

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You would need to think about redecorating. It's a bit grim.

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It could do with a pick-me-up in here, some fresh carpet,

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but I really like it in here.

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I'm going to go upstairs and explore.

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I can't say I'm completely head-over-heels with

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the current layout but I can't see any way round it.

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Personally I couldn't bear to take out this lovely old fireplace.

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It would make this room open plan but as things stand,

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I think this is the heart of the home.

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So for me, it has to stay. I like the cute staircase.

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I even like the rope though it's not especially safe.

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At least the layout upstairs is pretty standard

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though it may be a tad bijou.

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The two bedrooms are sweet and at least the bathroom is upstairs.

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I'm already wondering if there's room for expansion.

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This cottage, it's not listed, which is great news.

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Someone can come in here and get started.

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Well, no. I'm afraid not.

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The property sits in a conservation area.

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That will have implications for the new owner.

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With a few exceptions, no building or part of a building can be

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demolished or removed without conservation area consent from the council.

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There are a host of other things you can't do.

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I would say it's better to be safe than sorry -

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make sure you check with your local authority before staring any work.

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# A cottage, small is all I'm after

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# Not one that's spacious and wide

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# Give me the simple life... #

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Even if you wanted to do something that seems relatively simple,

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like double-glazing these sash windows, you'll need permission.

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So not such a simple life.

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And just when you thought things couldn't be more complicated...

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Parking is at a premium in this town.

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Unfortunately this cottage doesn't come with any.

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The double yellow lines on the road make it impossible to park

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outside the house.

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I think this will put some buyers off.

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If you do own a car, the nearest spot is right the way round there.

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Or you can park round there for just half an hour.

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Getting shopping or buggies in there might be a real

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challenge which might put families off.

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This small cottage is very appealing

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but not without its problems.

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We asked a local property expert for his thoughts on this place

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guided at between 110 and £120,000.

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This town is popular with commuters cos you've got a good

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access into London and this is a sweet traditional Kentish

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cottage in a great location and it works really well

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but it needs some renovation and refreshment.

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It needs replacement and updating of the kitchen

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and bathroom and redecoration.

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Time to find out what those rental and resale values might be.

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This property when renovated will sell for probably £185,000.

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This property will let very well

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and will achieve certainly £600 per calendar month.

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Parking is the only issue that may take the shine off this little cottage.

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It won't suit everybody, but let me tell you, I love it and there's

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the potential to add value and that's what it's all about.

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Let's find out who fancied this at the auction.

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Let's go to lot 29. Pretty little cottage, this one.

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Can I see £110,000 to start? Give me 100 to get on the way.

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£100,000 only sitting down, right-hand side.

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I should think so too. I've got 100.

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I'm looking for 102 and four and six.

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At six and eight. 110 in a fresh place.

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112, 114, 116. At 18. At 20.

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At £118,000 I've got. Is that 19?

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120, and one. Going in ones now.

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121 may I see? We're down to the ones. Let's keep going on it.

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For the first time at £120,000. Either of you coming back in again?

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Second time at £120,000.

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Third and final time. You sure you're all done at £120,000?

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Well done. You've bought yourself a lovely cottage.

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The successful bid was made by father and daughter Robin and Caroline.

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Robin's a retired economist and his daughter Caroline's a manager

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and a fashion retailer.

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I went to the property to meet them

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and find out what they had planned for the place.

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Caroline and Robin. Lovely to meet you. I love this cottage.

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-What made you want to buy this at auction?

-We like Faversham.

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I just moved to Faversham about a year ago.

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My other daughter lives only 100 yards down the road

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in a listed house so we're attached and we like it a lot.

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Is this something that you've been meaning to do? Is it for yourself?

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Why did you want to buy this, Caroline?

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Just cos it's so cute and sweet and it's in the heart of town

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but it has got a little bit of outside space.

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It's close to family so on lots of levels, it works.

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Who have you bought this for?

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Ultimately, it's going to be for Caroline, but in the meantime,

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because she's not working in this area

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and she lives quite a long way away in Eastbourne,

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it'll be rented out.

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If they achieve a top rent of £600 per calendar month, it'll be a nice

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earner for them until Caroline decides to relocate to Faversham.

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-Who spotted this cottage?

-I did.

-How did you come about that?

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Initially, Caroline tracked it

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but when it was for sale for £160,000 with an agent in town.

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You only told me about it when it came up for auction.

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How marvellous is that? That this property was

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for sale for 160 grand and the guide price was so much lower

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and you ended up paying £120,000 for it!

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Do you feel quite lucky about that?

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Really lucky. We didn't know on the day what it would go for.

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We set a maximum of about 125.

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So, 125 is your top limit?

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Well...

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-Or do you think you might have squeezed a bit more?

-You never know.

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-So, you probably would have paid a little bit more?

-Possibly, yes.

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Luckily for them, they weren't put in that predicament,

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and picked this place up for a song.

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And the reason for that price drop?

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Well, as the house is non-standard construction,

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half brick, with a timber-frame upper storey,

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it's that bit more difficult to get a mortgage on it,

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so the market for the house, and therefore the price, diminishes,

0:20:360:20:40

which worked in Caroline and Robin's favour.

0:20:400:20:43

What are their plans?

0:20:430:20:45

Well, we've got a lot of ideas, but we have to follow them through.

0:20:450:20:49

So, we could do very little, or we could do quite a lot,

0:20:490:20:52

even as far as taking out the chimney and making this...

0:20:520:20:55

Almost gutting the whole place and starting again.

0:20:550:20:58

We'll need to talk to structural engineers,

0:20:580:21:00

because, obviously, it is major work.

0:21:000:21:01

But if we did, then we could probably have this

0:21:010:21:04

as an open-plan downstairs.

0:21:040:21:05

We could even possibly move the staircase to a different position,

0:21:050:21:09

so we can maximise the space upstairs,

0:21:090:21:11

and even move the bathroom upstairs,

0:21:110:21:13

so we could make the bedrooms a bit bigger,

0:21:130:21:15

because everything is quite small.

0:21:150:21:17

Now, they're quite major alterations,

0:21:170:21:19

and I know this house isn't listed, but it is in a conservation area,

0:21:190:21:22

so there are certain permissions needed.

0:21:220:21:24

-Have you looked into that?

-Yes, yes, we know and...

0:21:240:21:28

as my sister does live round the corner

0:21:280:21:30

and she has a listed property...

0:21:300:21:32

We certainly don't want to spoil any of the charm of it at all.

0:21:320:21:36

We're very interested in conservation and preservation

0:21:360:21:38

and making the most of any original features there are.

0:21:380:21:41

It's not terribly exciting inside at the moment.

0:21:410:21:44

I think it could be a lot more exciting.

0:21:440:21:46

Robin has a £20,000 budget for a simple refurbishment.

0:21:460:21:50

He expects this to take three to four months,

0:21:500:21:53

unless, of course, he decides to start shifting rooms around.

0:21:530:21:57

-What do you think the budget would be for that?

-Nearer 40,000.

0:21:570:22:00

-So, you know, that's quite a lot of money to spend here.

-It is.

0:22:000:22:03

But you did get it for 120,000.

0:22:030:22:05

It would still be the same price that it had been advertised at,

0:22:050:22:08

and it would be a perfect place to live.

0:22:080:22:10

Is this something quite exciting for you,

0:22:100:22:12

that you can get your teeth into, this project, at the moment?

0:22:120:22:15

It's that, isn't it? It's a challenge, isn't it?

0:22:150:22:17

And is it nice that your dad's been on hand to help you?

0:22:170:22:20

Definitely. It'll be really nice for us to do it...

0:22:200:22:22

Actually, she helps me.

0:22:220:22:24

She's got a much better idea of visual space than I have.

0:22:240:22:29

You know, she can visualise what can be done and put it on paper as well.

0:22:290:22:33

Well, guys, it's been so exciting meeting you both today.

0:22:330:22:36

I think you've got a lovely little home here.

0:22:360:22:38

I can't wait to find out what you do.

0:22:380:22:40

-Good luck with this. Thank you, Caroline.

-Thank you.

0:22:400:22:43

-Robin.

-Thanks very much.

0:22:430:22:44

This cottage is just so magical!

0:22:450:22:48

I think that chimney stack makes this home so special.

0:22:480:22:52

Imagine that crackling fire in the winter!

0:22:520:22:55

Will it stay or will it go?

0:22:550:22:58

You can join me later on in the programme

0:22:580:23:01

to find out what Caroline and Robin decide.

0:23:010:23:03

Coming up, this Derby two-bed needs dosh to save it from disaster.

0:23:060:23:10

It's got to be done before it causes even more damage.

0:23:100:23:14

At this cottage in Kent,

0:23:150:23:17

did Caroline and Robin complete the work,

0:23:170:23:19

or set their hopes too high?

0:23:190:23:21

Haven't quite decided how we get up there yet...

0:23:210:23:24

But first in Cumbria,

0:23:270:23:28

did Tony's temporary home turn out to be trouble?

0:23:280:23:31

It wasn't straightforward. The front of the building had to come out.

0:23:310:23:35

Earlier in the programme,

0:23:380:23:39

we were on the picturesque Cumbrian coast at Parton.

0:23:390:23:43

Tony and his wife Lisa went to auction to buy a temporary family home.

0:23:430:23:47

This was to be a stopgap,

0:23:470:23:49

whilst the plans for their new-build home were being processed

0:23:490:23:53

and the house constructed.

0:23:530:23:55

Progress had been slow,

0:23:550:23:56

so they decided to stop wasting money on rent.

0:23:560:23:59

They paid £55,000 for this four-bedroom house,

0:23:590:24:02

hoping just a few cosmetic changes would be enough.

0:24:020:24:06

However, like many plans, it wasn't straightforward.

0:24:060:24:10

The bank sent a surveyor out.

0:24:100:24:13

They drilled holes in the wall, put cameras down,

0:24:130:24:15

said the wall ties are showing signs of deterioration.

0:24:150:24:18

-The wall ties?

-Yes, so we're getting them fixed.

0:24:180:24:23

We're going to maybe take a window out, these two windows out,

0:24:230:24:26

put one big bay window in the front,

0:24:260:24:28

just to give it a little bit of a lift and a freshen up.

0:24:280:24:31

So, what's the budget?

0:24:310:24:32

About 15,000.

0:24:320:24:34

Well, it's now 17 weeks later and back in Parton,

0:24:350:24:38

those two windows have become one.

0:24:380:24:41

The door and upstairs windows have also been replaced.

0:24:420:24:45

There's been a great change in the living room.

0:24:480:24:51

Lisa's interior design skills have transformed the place...

0:24:510:24:55

..with new internal doors and a log burner.

0:24:580:25:00

And two have become one behind the living room.

0:25:030:25:07

Tony's knocked the separate loo and bathroom into one,

0:25:070:25:10

and installed a good quality, mid-range suite.

0:25:100:25:13

And Lisa's styling is on show in a refitted kitchen as well.

0:25:160:25:21

So, converting two into one in this house seems to have worked.

0:25:210:25:25

When we first got the property, there were two windows in this wall.

0:25:250:25:29

We decided to take them out and put a nice bow window here

0:25:290:25:32

to maximise the view of the sea.

0:25:320:25:34

It wasn't straightforward. The front of the building had to come out.

0:25:340:25:38

We had to put supports through it to hold the front of the building,

0:25:380:25:41

to stop it falling in.

0:25:410:25:42

And there was a bit of a delay with the windows,

0:25:420:25:44

but eventually, they got put in,

0:25:440:25:46

and we're really pleased with the end product,

0:25:460:25:48

and you can see what view we've got of the sea.

0:25:480:25:51

Upstairs, the styling continues with three of the four bedrooms...

0:25:540:25:58

..and the family plan to move in within a week.

0:26:060:26:08

Bedroom four is currently being used as useful storage space.

0:26:110:26:16

Remember, this is only a temporary home for the family,

0:26:160:26:19

until they move to a new house they hope to build up the coast.

0:26:190:26:22

We finally got planning permission for the new-build about a month ago,

0:26:220:26:26

so, hopefully, we'll get things moving when we get moved in here.

0:26:260:26:31

Tony decided to check out some of the things he'll be putting into his new-build in this house first.

0:26:310:26:37

Yeah, we installed a wood-burning stove in here.

0:26:390:26:41

It's like a trial run. We had a few issues with the flue.

0:26:410:26:44

Building Control came out and we did what they wanted us to do,

0:26:440:26:47

and, yeah, we're really pleased with it.

0:26:470:26:49

Although he's only going to live here for about a year,

0:26:490:26:52

Tony plans to add a patio and off-street parking to the front.

0:26:520:26:56

# I just don't want to stop... #

0:26:560:26:59

I hope he'll see a return on that money.

0:26:590:27:01

He's already had the added expense of fixing the broken wall ties

0:27:010:27:06

that the survey had highlighted.

0:27:060:27:09

They drilled 180 holes, replaced them,

0:27:090:27:12

which put time and expense onto the project.

0:27:120:27:15

But it was something we couldn't avoid,

0:27:150:27:17

as we needed a certificate at the end of it,

0:27:170:27:19

because when we come to sell it on at the end,

0:27:190:27:21

it's all guaranteed and everything.

0:27:210:27:24

Tony has done a lot of the work himself,

0:27:240:27:26

but who else has been involved?

0:27:260:27:28

We've had local tradesmen in to do the bulk of the work,

0:27:280:27:31

the dashing and the building work on the window and what have you.

0:27:310:27:35

My friend Robert, he's a joiner,

0:27:350:27:36

he put the doors on and the skirting boards...

0:27:360:27:39

Family and friends have helped.

0:27:390:27:41

My little boy, Owen, and my little girl, Linny May,

0:27:410:27:43

they've helped take wallpaper off, tiles off,

0:27:430:27:46

bag things up and wash things down and, yeah,

0:27:460:27:49

we've all got stuck in and I really appreciate it.

0:27:490:27:51

Everything here has been done to a very high standard,

0:27:510:27:54

but there has been what could be regarded

0:27:540:27:57

as a lot of unnecessary expense.

0:27:570:27:59

This is only supposed to be temporary,

0:27:590:28:01

so did they go overboard on what's meant to be a stopgap?

0:28:010:28:05

We have gone over budget, just because of the spec,

0:28:070:28:10

we've done it a little bit higher spec,

0:28:100:28:12

but with the drive and the patio on the back,

0:28:120:28:15

probably 25,000, we'll have spent on it all together.

0:28:150:28:18

As Tony paid £55,000 at auction for the property,

0:28:190:28:22

that would take his total investment here to £80,000.

0:28:220:28:26

Time to see if it's been money well spent.

0:28:290:28:32

We invited two local estate agents to come and give us their opinion on the place.

0:28:320:28:37

I'm really impressed with the standard of refurbishment.

0:28:370:28:40

It's obvious the owners have gone to every length

0:28:400:28:42

to get this property right, and I think that really shows through.

0:28:420:28:46

I really love the property, I love what the owners have done,

0:28:460:28:48

the finish is superb...

0:28:480:28:50

I particularly like the kitchen and the wood-burning stove.

0:28:500:28:53

I think they just add that something extra-special to the property.

0:28:530:28:57

Of particular note for me is the fact that

0:28:570:28:59

the owners have removed a window on the front elevation,

0:28:590:29:03

moved this into line with a view of the sea, which is a great idea.

0:29:030:29:07

Costly, but I think the effect is good.

0:29:070:29:09

But will that extra cost that Tony's incurred

0:29:090:29:12

be rewarded when he and Lisa come to sell?

0:29:120:29:15

And do the estate agents think it's worth more

0:29:150:29:18

than the £80,000 they've invested?

0:29:180:29:20

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

0:29:200:29:23

I would aim for a figure between £90-£95,000.

0:29:230:29:26

Bearing in mind the quality, I would value this house at £95,000.

0:29:270:29:32

Based on that valuation range, there could be a gross profit here

0:29:320:29:36

of between £10-£15,000 before taxes and expenses.

0:29:360:29:40

I thought it would have been a bit more than that, to be honest.

0:29:400:29:43

But, in the present climate,

0:29:430:29:46

it's still OK.

0:29:460:29:48

Yeah, we're still happy with that.

0:29:480:29:50

Well, Tony didn't get his wish there,

0:29:520:29:54

but maybe rental valuations will cheer him up.

0:29:540:29:58

The rental market for a property of this size within this area

0:29:580:30:02

is extremely good.

0:30:020:30:03

I expect there to be very high demand,

0:30:030:30:05

leaving us with a rental figure of about £500 per calendar month.

0:30:050:30:10

With a property of this standard,

0:30:100:30:11

I would aim for a rental figure of around £525 per calendar month.

0:30:110:30:15

Based on Tony's current investment,

0:30:160:30:18

those rental incomes would generate a yield of 7.5%.

0:30:180:30:23

Oh, that's...that's good to know, yeah.

0:30:230:30:25

But, at the end of the day,

0:30:250:30:27

I think we are going to go more to the selling,

0:30:270:30:29

rather than the rent out, but we'll see.

0:30:290:30:32

We'll be here for 12 months yet, and next year,

0:30:320:30:34

we'll start on the new-build, I hope, and...start again.

0:30:340:30:38

I'm in Derby, in the heart of the East Midlands, a growing city

0:30:420:30:46

with an estimated 1,200 people taking up residence each year.

0:30:460:30:50

That means investment opportunities for the intrepid auction-goer.

0:30:500:30:54

Alvaston is a popular suburb,

0:30:540:30:56

three miles south-east of the city centre,

0:30:560:30:58

where buy-to-let developers, or even first-time buyers,

0:30:580:31:02

might want to take a look.

0:31:020:31:03

I know it's cheesy, but, whenever I come to this part of Derby,

0:31:070:31:11

I can't get a particular Glen Campbell song out of my head.

0:31:110:31:16

MUSIC: "Galveston" by Glen Campbell

0:31:160:31:18

# Alvaston, oh, Alvaston... #

0:31:180:31:21

HE CHUCKLES

0:31:210:31:23

I told you it was cheesy!

0:31:250:31:27

Anyway, this is the property I'm here to see.

0:31:270:31:29

It's a two-bedroom terrace, at a guide price of £54,000.

0:31:290:31:33

# It's Galveston... #

0:31:330:31:35

Anyway, the house. Well, this is kind of interesting.

0:31:350:31:39

A stud partition wall the moment you come through the front door.

0:31:390:31:41

Somebody has created this corridor.

0:31:410:31:43

Now, that is unusual for this kind of property and...I don't like it.

0:31:430:31:47

What is the point of that corridor? It does absolutely nothing.

0:31:470:31:49

Take it down, open that.

0:31:490:31:51

Maybe keep this bit of it, to create a bit of a porch area,

0:31:510:31:54

but apart from that, no. Silly.

0:31:540:31:57

It's just made the already poky room...well, pokier.

0:31:570:32:01

My nose tells me there's some damp and, yep, there it is.

0:32:010:32:06

Through into the rear of the property...

0:32:060:32:08

I mean, it is a fairly standard layout.

0:32:080:32:11

So, I'm looking for things which vary in these properties.

0:32:110:32:14

The position of the bathroom, where the kitchen is,

0:32:140:32:16

whether it's got open fires...

0:32:160:32:18

Now, it's obviously had a fire at some point,

0:32:180:32:20

that's at least been bricked up properly with a breather brick,

0:32:200:32:23

so you don't get damp in that chimney breast, which is good.

0:32:230:32:26

The room doesn't seem too bad,

0:32:260:32:27

although I did notice a bit of damp in that corner there.

0:32:270:32:30

Through on into the kitchen.

0:32:300:32:33

Nice surprise, it looks like this has been renewed at some point.

0:32:330:32:36

You could almost use this as it is, although, I think, again,

0:32:360:32:39

it would benefit from a bit of tarting up.

0:32:390:32:42

Out into a rear courtyard, you've got double glazing...

0:32:420:32:45

For this kind of property, so far, so good.

0:32:450:32:47

# Have you heard the news?

0:32:470:32:49

# Have you heard what's hit the headlines?

0:32:490:32:52

# The whole world knows that I'm in love with you... #

0:32:520:32:54

Since the rear garden is such a good size,

0:32:540:32:56

there's obviously space here to build out, and add a bigger kitchen.

0:32:560:33:00

Hold the front page, this place looks great value.

0:33:000:33:03

Time for an inspection upstairs.

0:33:030:33:05

Here there's a very tired old bathroom...

0:33:070:33:10

..and a pair of decent sized double bedrooms.

0:33:120:33:15

That's the good news.

0:33:170:33:18

The bad news is they've all got serious signs of damp.

0:33:180:33:22

Nowhere more so than this front bedroom here.

0:33:220:33:24

This is the chimney breast,

0:33:240:33:26

and as you can see up on the ceiling there,

0:33:260:33:30

serious signs of problems.

0:33:300:33:32

Now, feeling it...

0:33:320:33:35

Yes, it does feel, still, quite damp.

0:33:350:33:38

It doesn't...look to me like a problem that's gone away,

0:33:380:33:42

and it's a classic thing.

0:33:420:33:44

Probably the flashing around the chimney stack has become loose,

0:33:440:33:49

or whatever, at some point,

0:33:490:33:51

and water has just obviously leaked in there, straight down.

0:33:510:33:54

Who knows what damage it's caused to the joists in this floor as well.

0:33:540:33:58

So...umm...

0:33:580:34:00

Not expensive to sort out,

0:34:000:34:02

but it's got to be done before it causes even more damage.

0:34:020:34:06

# Drip, drop, drip, drop

0:34:060:34:10

# Drip, drop, drip...

0:34:100:34:13

# It's raining so hard

0:34:130:34:16

# Looks like it's gonna rain all night... #

0:34:160:34:21

Like I said, what I'm checking for in these properties

0:34:210:34:24

is whether there's anything interesting about the layout.

0:34:240:34:27

And there is.

0:34:270:34:29

Well, a bit of a bonus for the property is it does have a cellar.

0:34:310:34:35

Now, at the moment, the head height isn't that brilliant.

0:34:350:34:37

One thing you might consider is actually digging down

0:34:370:34:40

to create a usable space.

0:34:400:34:41

But if a house has got a cellar,

0:34:410:34:43

it's a really good opportunity to explore a bit more

0:34:430:34:46

in terms of if there are any significant problems.

0:34:460:34:48

And given the fact there's lots of damp upstairs,

0:34:480:34:51

I'm a bit concerned about down here.

0:34:510:34:53

It smells a bit damp, which has got me a bit concerned.

0:34:530:34:56

Somebody's taken off some of the plasterboard

0:34:560:34:59

from underneath these joists here, which is good.

0:34:590:35:02

It enables me to see the fact that some new joists have been put in.

0:35:020:35:05

Why was that, I wonder?

0:35:050:35:08

A classic thing is dampness at the end of the joists,

0:35:080:35:12

where they go into the wall.

0:35:120:35:13

If there is damp there, the joists basically rot off at the end

0:35:130:35:17

and, theoretically, the whole floor could...could collapse.

0:35:170:35:21

So, I'm going to check the end of the joists.

0:35:210:35:23

Yeah, and sure enough, you can see the end of that joist's

0:35:230:35:27

completed rotted off where it went into the wall.

0:35:270:35:30

On the left-hand side,

0:35:300:35:31

you can see that a new joist has been put in.

0:35:310:35:34

That's good news. But what's NOT good news

0:35:340:35:37

is the intrinsic problem that caused it in the first place,

0:35:370:35:40

a little bit of that nasty little thing called dry rot.

0:35:400:35:44

So, the problem is...

0:35:440:35:45

the actual root cause of the problems wasn't sorted out

0:35:450:35:49

when they did the remedial work.

0:35:490:35:51

# I've got some good news and some bad news... #

0:35:510:35:54

You can't ignore it because dry rot's a fungus

0:35:540:35:57

that travels through all building materials, not just timber.

0:35:570:36:01

This, like the damp upstairs and the plasterwork falling off the walls,

0:36:010:36:05

needs to be addressed pronto.

0:36:050:36:06

Still, there is a lot of house for the money here.

0:36:080:36:11

Two bedrooms for £54,000, even with a lot of damp and fungus,

0:36:110:36:15

is not to be sniffed at.

0:36:150:36:17

We asked a local property expert for his thoughts.

0:36:170:36:20

Good points - somebody has taken the time and the expense

0:36:220:36:26

to install PVC double glazing.

0:36:260:36:28

It does have gas central heating,

0:36:280:36:30

therefore saving some cost for the purchaser.

0:36:300:36:32

I would say the possible downsides of this property

0:36:320:36:35

are that there is potentially issues with the roof.

0:36:350:36:37

It does appear that there has been water ingress

0:36:370:36:39

into ceilings on the first floor

0:36:390:36:41

and I would certainly say that the timbers within the cellar

0:36:410:36:44

and the ground floor certainly need further investigation,

0:36:440:36:47

as it does appear that there could be evidence of dry rot.

0:36:470:36:51

If you were going to do this place up,

0:36:510:36:53

what could you expect to sell it for?

0:36:530:36:55

If this property, as it currently stands,

0:36:570:36:59

were offered back to the resale market in a good condition,

0:36:590:37:02

it would have a value in the region of £90,000.

0:37:020:37:05

What about letting it?

0:37:050:37:07

It would rent for somewhere in the region of £450 per calendar month.

0:37:070:37:11

Well, a decent enough little property,

0:37:120:37:15

but not without its problems, mainly the dry rot and the damp.

0:37:150:37:18

But get those sorted and done professionally,

0:37:180:37:22

and this could be a good home or a nice little rental earner.

0:37:220:37:26

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

0:37:260:37:28

Lot number six is in Alvaston.

0:37:310:37:33

Good investment property, ladies and gentlemen.

0:37:330:37:35

May I say 55,000 to start it? 54.

0:37:350:37:38

Who's got £50,000 to move it on? 50.

0:37:380:37:42

50,000, thank you, at £50,000, the opening bid.

0:37:420:37:45

51, I'm looking for.

0:37:450:37:47

Thank you, 51.

0:37:470:37:48

52, 53, 54.

0:37:480:37:52

54, 55, 56.

0:37:520:37:55

56, 57.

0:37:550:37:57

57, 58 on the phone.

0:37:570:38:00

At 58, 59. 59,000.

0:38:000:38:03

60? 59 and a half.

0:38:030:38:05

60,000. Bids in the room.

0:38:050:38:08

60 and a half. 60 and a half.

0:38:080:38:10

61. At 61? £61,000.

0:38:100:38:15

500. 61,5.

0:38:150:38:18

62, thank you. 62,000.

0:38:180:38:21

And a half again?

0:38:210:38:24

At £62,000.

0:38:240:38:26

500 somewhere else. 62,5.

0:38:260:38:28

63.

0:38:280:38:30

At £63,000.

0:38:300:38:32

500 somewhere?

0:38:320:38:34

We are going to sell it at £63,000 for the first time,

0:38:340:38:38

second time, third and last opportunity.

0:38:380:38:41

It's down at 63,000, thank you.

0:38:410:38:43

The successful bidder was, in fact, none of those bidders.

0:38:430:38:46

It was Daneesh, who works as a postman in Derby.

0:38:460:38:48

He was too busy to go to the auction himself

0:38:540:38:56

so he sent along a proxy to bid on his behalf.

0:38:560:38:59

He already has two investment properties that he rents out

0:38:590:39:02

and was looking for a third one to do up and sell on.

0:39:020:39:05

-Daneesh, great to meet you. Congratulations.

-Thank you.

0:39:060:39:10

Tell me why you wanted to buy this place.

0:39:100:39:12

-Actually, I didn't want to buy this place.

-You didn't?

-No.

0:39:120:39:14

I was at work so I sent my father to the auction for me

0:39:140:39:17

and I think he liked the look of this more than the other three.

0:39:170:39:21

-Whose money was it?

-Mine.

0:39:210:39:23

-Right. So, you specifically said three other properties.

-Yeah.

0:39:230:39:27

And he came back with a completely different one.

0:39:270:39:30

-So, you hadn't seen it?

-No.

0:39:300:39:31

-You hadn't read the legal pack about it?

-No.

0:39:310:39:33

-Hadn't been inside?

-No.

0:39:330:39:34

-Didn't know what it looked like?

-No.

0:39:340:39:36

-Didn't even know where it was?

-No.

0:39:360:39:38

So, what did you say when your dad came in?

0:39:410:39:45

He said, "I've got you a house that you wanted."

0:39:450:39:48

Well, he didn't say wanted but I assumed it was one of the three

0:39:480:39:51

so I came home with a bottle of champagne, thinking,

0:39:510:39:53

"Yeah, let's celebrate."

0:39:530:39:55

And he actually said, "No, it's not one of them three, it's this one."

0:39:550:39:58

And he showed me the picture.

0:39:580:40:01

Right. What was his thinking?

0:40:010:40:04

I don't know. I don't know.

0:40:040:40:06

I think he just thought this looked like a better property to have.

0:40:060:40:11

-Are you still talking to him?

-Yeah.

0:40:110:40:14

Just.

0:40:140:40:16

Well, that's just as well because this house is nothing like

0:40:160:40:19

the three options Daneesh had spotted in the auction catalogue.

0:40:190:40:24

Were they similar? Are we talking about...?

0:40:240:40:26

No, all three houses were slightly different on views.

0:40:260:40:29

One was semi-detached, one was detached and this one just...

0:40:290:40:34

So, one was a semi-detached, one was a detached. What was the other one?

0:40:340:40:38

I can't remember off the top of my head.

0:40:380:40:40

A bungalow or a castle?

0:40:400:40:41

-Semi-detached or detached and he came back with a terraced.

-Yeah.

0:40:410:40:46

-So it wasn't even in the ballpark.

-No, it wasn't. No.

0:40:460:40:49

When was the first time you saw it?

0:40:490:40:51

Last week. A week ago.

0:40:530:40:56

-Right...

-After we had bought it and I got the keys after 21 days.

0:40:560:41:00

-What did you think when you walked through the door?

-Wowsers.

0:41:000:41:05

Wowsers in a good way or wowsers in a bad way?

0:41:050:41:07

Yeah, in a sort of good and bad way.

0:41:070:41:09

I don't know, it was just a bit of a shock because I thought,

0:41:090:41:12

"It does need a little bit of work."

0:41:120:41:14

Well, a bit of work is certainly one way of putting it.

0:41:190:41:22

There are plenty of problems to tackle in this terrace

0:41:220:41:26

but Daneesh is starting in the right place.

0:41:260:41:28

I need the roof checking first before anything

0:41:300:41:32

so I'm going to have the roof checked then I'm going to have someone

0:41:320:41:35

-look downstairs and check the beams and stuff.

-Right.

0:41:350:41:38

Then see where we go from there

0:41:380:41:39

and then start inside with the decorating.

0:41:390:41:42

So, how much are you going to be able to do yourself, do you think?

0:41:420:41:45

I'm just going to bring in a team.

0:41:450:41:47

A team of lads who know what they're doing

0:41:470:41:50

-and just get it in and get it back out.

-That's the plan, to resell it?

0:41:500:41:53

It's either resell or put it on rent, just to see what I can make,

0:41:530:41:56

if it's going to be better for long-term or short-term investment.

0:41:560:42:00

OK. What is the sort of budget you have got for doing the work?

0:42:000:42:03

About five.

0:42:030:42:05

Until I take wallpaper off and stuff,

0:42:050:42:07

I don't really know but I've got a budget of eight.

0:42:070:42:09

Obviously, I would like to spend less.

0:42:090:42:11

I guess it depends what the roof's like

0:42:110:42:13

-and it depends on the mess in the cellar.

-Yes.

-All the dry rot.

0:42:130:42:17

What about timescale?

0:42:170:42:19

-Approximately anywhere from 4 to 6 weeks.

-Right.

0:42:190:42:23

Is your dad going to come and do the labouring here for free?

0:42:230:42:25

He'll make the tea.

0:42:250:42:28

Well, listen, it's good to see you're still smiling.

0:42:280:42:30

-Congratulations.

-Thank you very much.

-Good luck with it.

0:42:300:42:33

I look forward to seeing how you get on.

0:42:330:42:35

A bit of a non-standard introduction to this property for Daneesh.

0:42:370:42:41

Didn't have a clue he was going to buy it.

0:42:410:42:44

In fact, his dad just surprised him. Well, there you go.

0:42:440:42:48

It's a great story. He seems to be ready to take it on.

0:42:480:42:52

Hopefully, the challenges of the dry rot

0:42:520:42:55

and the damp won't prove to be too huge.

0:42:550:42:58

You can find out how he does get on later in the show.

0:42:580:43:01

Time has passed, budgets have been spent, sometimes blown,

0:43:050:43:09

but the big million-dollar question is has all been worth it?

0:43:090:43:13

Yes, have our buyers been busy

0:43:130:43:15

or have they let the grass grow under their feet?

0:43:150:43:18

Let's go back and find out.

0:43:180:43:20

We are back in the Faversham in Kent

0:43:210:43:23

to find out how father and daughter team Robin and Caroline

0:43:230:43:27

got on with this timber-clad cottage they bought at auction.

0:43:270:43:31

Inside it had a living room and a kitchen area

0:43:310:43:33

squeezed around a characterful but substantial fireplace.

0:43:330:43:37

The big question in this small cottage was

0:43:370:43:40

should it stay or should it go?

0:43:400:43:42

So, we could do very little or we could do quite a lot,

0:43:440:43:46

even as far as taking out the chimney

0:43:460:43:49

and almost cutting the whole place and starting again.

0:43:490:43:52

Upstairs, there was one decent double bedroom

0:43:530:43:56

and a smallish single.

0:43:560:43:58

Both needed new carpets and redecoration.

0:43:580:44:01

The bathroom was shoehorned in between the bedrooms

0:44:010:44:04

and was a windowless, characterless kind of place.

0:44:040:44:07

Clearly, retired economist Robin

0:44:070:44:09

and shop manager Caroline had more decisions to make.

0:44:090:44:13

We could even possibly move the staircase to a different position

0:44:130:44:16

so we can maximise the space upstairs

0:44:160:44:18

and even move the bathroom

0:44:180:44:20

so we can make the bedrooms a bit bigger

0:44:200:44:22

cos everything is quite small.

0:44:220:44:24

Robin and Caroline paid £120,000 for the house at auction and

0:44:240:44:28

the renovation budget was anything between £20,000 and £40,000.

0:44:280:44:33

The timescale was four to five months.

0:44:330:44:35

We have come back 11 months later to see

0:44:400:44:42

if they have turned this titchy cottage into a beautiful home.

0:44:420:44:46

Outside, they still have some work to do.

0:44:570:45:00

The new wood panelling needs to be painted

0:45:000:45:02

and the garden is still to be finished but they have added

0:45:020:45:05

a porch and, much more importantly, an extra window.

0:45:050:45:09

And that's not all.

0:45:090:45:12

Yep, it's cheerio to the chimney.

0:45:120:45:14

Oh, I loved that fireplace

0:45:160:45:18

but I suppose I can see why they opted to remove it.

0:45:180:45:21

So, we originally took out the chimney breast

0:45:240:45:27

and we gutted all the walls.

0:45:270:45:29

We have put in a much bigger and a much better kitchen

0:45:290:45:34

with built-in dishwasher, washing machine, fridge.

0:45:340:45:37

So, it's a lovely, simple shaker kitchen with a solid oak worktop.

0:45:370:45:42

We are really pleased with it. I think it works really well.

0:45:420:45:46

The ground floor is now open, spacious and light.

0:45:460:45:50

But taking the decision to remove the central fireplace was tough.

0:45:500:45:55

The chimney wasn't in very good condition

0:45:550:45:58

and the builders told us it might be cheaper,

0:45:580:46:00

rather than trying to restore it, would be taking it down

0:46:000:46:03

and rebuilding it and then, you know, what was the point?

0:46:030:46:07

At that stage, we decided it was better to remove it.

0:46:070:46:10

Upstairs, the internal bathroom now has a brand-new window

0:46:140:46:18

and that's not all.

0:46:180:46:19

When we acquired the cottage, there were two bedrooms but there

0:46:230:46:28

was a bathroom in this corner so this bedroom was very small.

0:46:280:46:33

We are very pleased that we removed the chimney breast to allow us

0:46:330:46:37

to move the bathroom. Caroline made a good job with the bathroom design.

0:46:370:46:42

We have also put in this vaulted ceiling and an attic,

0:46:420:46:47

if you call it an attic, that goes to the other end of the house.

0:46:470:46:51

So there's a lot of storage space.

0:46:510:46:53

Haven't quite decided how we get up there yet.

0:46:530:46:56

That's an ingenious use of potentially dead space.

0:46:570:47:01

In the other double bedroom,

0:47:010:47:02

removing the built-in wardrobes has also freed up more space.

0:47:020:47:06

Robin has taken great care to make sure this old cottage is

0:47:060:47:10

going to be snug and cosy without its great, big fireplace.

0:47:100:47:15

The cottage didn't have any insulation before.

0:47:150:47:18

Now it is very thoroughly insulated

0:47:180:47:21

so that did tend to reduce the size of the cottage

0:47:210:47:24

but it was more than made good by the removal of the chimney.

0:47:240:47:30

But this was a family and development so, come on,

0:47:300:47:33

tell us all, how did they get on working together?

0:47:330:47:36

I've chosen quite a few of the colours and the tiles

0:47:370:47:41

and the bathroom fittings and things like that.

0:47:410:47:44

Caroline's very good at design and visualising the use of space

0:47:440:47:49

and so, no, I think it worked very well.

0:47:490:47:51

Doing such a thorough makeover has had an impact on both

0:47:510:47:55

the timescale and their budget.

0:47:550:47:57

It's taken 10 months to get to this stage,

0:47:570:48:00

not the four to five they had originally estimated.

0:48:000:48:03

Robin's gone over even his top estimate of 40,000,

0:48:030:48:07

having now spent £45,000.

0:48:070:48:10

So, added to the auction price of 120,000, this little cottage

0:48:100:48:14

has cost £165,000 so far.

0:48:140:48:18

It's time to find out if two local property experts

0:48:180:48:21

will think it was worth it.

0:48:210:48:23

Absolutely lovely. We've got a very, very nice, charming property here.

0:48:230:48:26

Double fronted.

0:48:260:48:27

Come inside the property

0:48:270:48:29

and the owners have done a fantastic conversion inside

0:48:290:48:31

and really opened up some living space on the ground floor.

0:48:310:48:34

With a property of this age, buyers would

0:48:340:48:36

initially be looking for a period features such as a fireplace, etc.

0:48:360:48:40

But it doesn't have one and the general surround

0:48:400:48:42

and finish is adequate that buyers will accept that.

0:48:420:48:46

What do the estate agents reckon the property is worth now?

0:48:460:48:49

With regards to a valuation,

0:48:490:48:51

once they have finished the works outside,

0:48:510:48:53

I'd expect the property to achieve in the region of £175,000.

0:48:530:48:56

The residential market value of this property, in my opinion,

0:48:560:48:59

would be somewhere between £175,000 and £185,000.

0:48:590:49:04

Those valuations would give Robin a profit of between 10 and 20,000

0:49:040:49:08

before costs and expenses.

0:49:080:49:11

That wasn't the reason for us doing the work

0:49:110:49:14

but I'm very pleased it is increasing its value.

0:49:140:49:17

Robin bought the cottage for Caroline to live in

0:49:170:49:20

when she returns to Faversham in a few years.

0:49:200:49:23

So, what about rental value in the meantime?

0:49:230:49:26

The market for rental is very, very busy at the moment.

0:49:260:49:28

You'll be looking at £750 per calendar month

0:49:280:49:31

for a property like this.

0:49:310:49:32

There is a strong demand for rental properties,

0:49:320:49:34

particularly two-bedroom places right in the heart of Faversham

0:49:340:49:37

and I'd expect them to achieve £700 per calendar month.

0:49:370:49:40

I think that's really good. That sort of what we suspected.

0:49:400:49:44

Yes. That's good.

0:49:440:49:47

A rental yield, then, of around 5.5%.

0:49:480:49:51

So, what's next for the family developers?

0:49:510:49:54

Doing a lot of work to my own house

0:49:550:49:57

so there's going to be an equal amount of work on that, I think.

0:49:570:50:01

So that will, I'm sure, keep us fully employed.

0:50:010:50:04

We'll certainly need a little bit of time to get over doing this one.

0:50:040:50:09

And I'm sure I'll be helping Dad out with his.

0:50:090:50:12

We are back in Alvaston to see

0:50:160:50:18

if Daneesh was sabotaged or saved by his dad's auction purchase.

0:50:180:50:22

Postman Daneesh was too busy to go along

0:50:220:50:24

so sent his father as a proxy, who bought none of the properties

0:50:240:50:28

Daneesh has researched and plumped for one sight unseen.

0:50:280:50:32

-So, you hadn't seen it?

-No.

0:50:320:50:33

-You hadn't read the legal pack about it?

-No.

0:50:330:50:36

-Hadn't been inside?

-No.

0:50:360:50:37

-Didn't know what it looked like?

-No.

0:50:370:50:39

-Didn't even know where it was?

-No.

0:50:390:50:41

Fortunately, he kept his sense of humour as the two-bedroomed

0:50:410:50:44

end of terrace did turn out to be full of opportunities.

0:50:440:50:48

That's opportunities to spend, spend, spend.

0:50:500:50:53

The bad news was that there was dry rot,

0:50:530:50:55

wet rot and plaster falling off the walls.

0:50:550:50:58

Some of the good news included new double glazing and central heating,

0:50:580:51:01

a huge back garden and a kitchen in decent condition.

0:51:010:51:05

More good news was that Dad was forgiven.

0:51:050:51:08

-Are you still talking to him?

-Yeah.

0:51:080:51:11

Just.

0:51:110:51:12

Daneesh hoped to complete the renovation of the terrace

0:51:150:51:18

in six to eight weeks.

0:51:180:51:19

The house cost £63,000 at auction

0:51:190:51:22

and he had a budget of between £5,000 and £8,000 to do it all.

0:51:220:51:26

We have come back six weeks later to see

0:51:290:51:31

if it is a case of family feud or father knows best.

0:51:310:51:35

MUSIC: "No Regrets" by ROBBIE WILLIAMS

0:51:350:51:37

# No regrets

0:51:370:51:38

# They don't work

0:51:410:51:43

# No regrets, now

0:51:460:51:48

# They only hurt. #

0:51:510:51:53

Outside still needs a little work but inside it's a different matter.

0:51:530:51:58

I've just painted it with some neutral colours and,

0:51:580:52:01

if you can remember,

0:52:010:52:02

there was a massive hole there from a water leak that we

0:52:020:52:05

had from the roof and it was just because the chimneys had little

0:52:050:52:08

leaks coming through so that's what caused the damage.

0:52:080:52:11

A roofer came in and just did that.

0:52:110:52:14

Plasterwork needed to come off all walls and just redo both

0:52:140:52:17

bedrooms and redone the ceiling and put new, fresh carpets in.

0:52:170:52:23

I'm actually quite happy with the work that's been done

0:52:230:52:26

and it does look fresh.

0:52:260:52:28

It might be fresh and clean up here now but, at the opposite level

0:52:300:52:33

of the house, something horrible had been living in the cellar - dry rot.

0:52:330:52:38

I just called in a specialist and, basically,

0:52:380:52:40

they just treated the dry rot and then painted the cellar out.

0:52:400:52:44

Daneesh very sensibly assembled a team of professionals to deal

0:52:450:52:49

with all those tricky dry rot problems throughout.

0:52:490:52:53

I had some builders come in, a decorator, obviously a roofer

0:52:530:52:56

and a specialist for the dry rot.

0:52:560:52:58

Every other day I was here, pushing them.

0:52:580:53:01

Come on, work faster.

0:53:010:53:03

Well, Daneesh's management technique seems to have worked.

0:53:030:53:06

The bathroom was not in the same state as the bedrooms

0:53:060:53:09

but it did require a complete refit.

0:53:090:53:11

Downstairs, the front sitting room has been spruced up.

0:53:170:53:20

The damp patches have been dismissed.

0:53:200:53:22

And the rear sitting room is also now ready and welcoming.

0:53:240:53:28

There was no need to replace the kitchen but it's been painted

0:53:310:53:34

and given a thorough scrub and polish.

0:53:340:53:37

For a first-time developer,

0:53:370:53:38

Daneesh has certainly kept a tight rein on his spending.

0:53:380:53:42

He's replaced fixtures and fittings only where he needs to

0:53:420:53:45

and has kept as much as he can.

0:53:450:53:47

Good for him.

0:53:470:53:48

So, did Dad know best after all?

0:53:480:53:50

The only other person that's really been on my back has been my dad

0:53:500:53:53

so it's been fantastic otherwise.

0:53:530:53:55

Cos if I didn't have him for moral support,

0:53:550:53:57

I think I would have crumbled a little bit.

0:53:570:53:59

I think it was quite a good purchase actually.

0:53:590:54:01

It's worked out better than I thought it would.

0:54:010:54:04

From roof to cellar, this relative newcomer to property

0:54:040:54:07

developing has reclaimed this terrace from its mouldy, old past.

0:54:070:54:11

Daneesh bought it for £63,000 and has spent only £4,000

0:54:110:54:15

on the refurbishment, bringing his total outlay to £67,000.

0:54:150:54:20

We asked the auctioneer who sold the property

0:54:230:54:25

and a local estate agent for their opinions.

0:54:250:54:29

When you come back to a place and it's been treated,

0:54:290:54:32

it always looks clean and fresh and tidy.

0:54:320:54:34

A lot of it is cosmetic work so it's fresh paintwork

0:54:340:54:39

and I don't think there's probably been a lot of money spent.

0:54:390:54:42

First impressions are it's a basic property

0:54:420:54:45

with a basic renovation

0:54:450:54:47

that will let or sell fairly easily.

0:54:470:54:50

This look, the simple, clean,

0:54:520:54:54

easy-to-move-into look is perfect for the market.

0:54:540:54:58

No extra fuss needed for today's purchaser or renter.

0:54:580:55:01

It's just straightforward, ready to move straight into.

0:55:010:55:05

Now to that all-important valuation.

0:55:050:55:08

What do they think Daneesh could expect to sell the house for?

0:55:080:55:11

It's an average property

0:55:110:55:13

so we are looking at an average price of around £80-£85,000.

0:55:130:55:17

If time was not of the essence then your asking price might be

0:55:170:55:21

just short of £90,000,

0:55:210:55:23

in the expectation that you'd achieve £85,000 or more.

0:55:230:55:28

Those valuations would give Daneesh a profit

0:55:280:55:30

of between £13,000 and £23,000 before costs and expenses.

0:55:300:55:36

It's a good profit line so I'm happy with that.

0:55:360:55:39

I can wait. I don't mind waiting on this and then selling,

0:55:390:55:42

so we'll see what happens.

0:55:420:55:44

But what about that all-important rental market?

0:55:440:55:47

What do the experts think the property could attract for that?

0:55:470:55:51

Rent should achieve around £425 per calendar month

0:55:510:55:55

and it should rent very easily.

0:55:550:55:57

This area, actually, is quite good for the rented market and,

0:55:570:56:00

with the quality of house like this, I think it would rent well.

0:56:000:56:03

I'd expect the rental value to be about £450 per calendar month.

0:56:030:56:07

At those rents, Daneesh would achieve around an 8% yield.

0:56:070:56:11

What does he think of that?

0:56:110:56:14

Fantastic.

0:56:140:56:15

I think it's generous.

0:56:150:56:17

So it's better than what I thought.

0:56:180:56:20

Finally, will he trust his father to represent him at auctions in

0:56:260:56:30

the future after such a successful, if surprising, first development?

0:56:300:56:35

At another auction,

0:56:350:56:36

I'd probably send my father with someone or I'd probably go with him.

0:56:360:56:40

I'm not going to send him on his own.

0:56:400:56:42

Whether you're a seasoned professional or a property novice,

0:56:440:56:48

there are always lessons to be learned.

0:56:480:56:50

So, join us next time for more auction action

0:56:500:56:53

here on Homes Under The Hammer.

0:56:530:56:54

-We'll see you then.

-Goodbye.

-Goodbye.

0:56:540:56:57

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