Episode 77 Homes Under the Hammer


Episode 77

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Transcript


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-Hello. Welcome to the programme.

-Property auctions used to be

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the domain of builders and developers, but not any more.

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Loads of people are realising their potential.

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Even in this difficult market,

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people are still buying their homes under the hammer.

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Even for the most experienced buyers,

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auctions can be nerve-wracking and exciting

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but you've got to be careful not to get carried away.

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Did today's buyers keep a cool head and bag a bargain?

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Here's what they bid for.

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I serve up a garden flat in Wimbledon but it is not yet an ace.

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There's definitely room for improvement.

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In this two-bed bungalow

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in Borrowash, Derby, things take a dramatic turn!

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And then... # Dun, dun, da! #

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In Blackhall, Co Durham, it's worth remembering to look up

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in a property as well as around.

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I need to find out what's going on with the ceiling here.

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All these properties went to auction.

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255. And we'll find out who bought them...

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-32.

-and what they paid when they went under the hammer.

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I'm in a part of London

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that's famous for holding an annual sporting event.

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No, it is not football, cricket or rugby.

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If you are lucky enough to bag a ticket,

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you'll more than likely be eating strawberries and quaffing champagne.

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That's right, I'm in Wimbledon, south-west London.

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It's a truly fabulous part of the city.

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And a popular commuter suburb

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with both mainline and underground trains to central London.

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A very short walk from the tube and train station,

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

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The last property to sell on THIS road sold for a staggering £905,000.

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I'm here to see a property that went to auction

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with a much smaller price tag.

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Now, this is it.

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It's a ground floor flat with two bedrooms and the guide, £260,000.

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The garden flat is leasehold and has a healthy 125 years remaining.

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I think it's got plenty going for it.

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A welcoming front door and lovely ornate mouldings at the front.

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OK, it could do with a lick of paint buy I'm not put off just yet.

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Through the communal hall to its own front door.

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It's a bit of a squashed, awkward entrance.

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This wall is coming out too far, there is nowhere to go here.

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You have got a wonderful large room to the front of the property -

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that could be a bedroom.

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A nice sized bathroom, it's all tiled. Maybe a little dated.

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Second bedroom here, which is incredibly small.

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That is quite a disappointing size.

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Then, you walk through the flat to an open kitchen.

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There is a window, so it is nice and bright but it is small.

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Right at the back, thank goodness, you have got a lovely open space.

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You can almost forgive what's going on back there.

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This is a fantastic, light and bright space.

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But I am wondering why they haven't opened up this wall -

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it's only a partition.

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You could get this wall down and have a lovely open-plan kitchen.

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There is enough room for your table

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and there are lovely doors leading out to your garden.

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So this flat? Well, there's definitely room for improvement.

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# There ain't nothing wrong with this old house

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# It just needs a little home improvement. #

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I'm confident that with some minor tweaks,

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you could turn this ground floor, garden flat

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that went to auction guided at £260,000, into something special.

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Down these stairs in the hall, there's more space.

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Basements are in high demand in London. If you can't go up,

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everybody is going down.

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Dig out and add pounds.

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I'm not saying this should be a luxury home cinema,

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but you could utilise this space.

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An all-important utility area, - hide the washing machines -

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or how about a walk-in wardrobe?

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I know I've got enough pairs of shoes to fill THIS space.

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But tread carefully,

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footing the bill for basement conversions can be pricey.

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# Toe the line for sure

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# And toe the line for good. #

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If you plan to tank the walls and add plumbing and ventilation,

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you have to know where to toe the line.

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And there's more potential outside.

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You may think this flat is a little tired on the inside, you'd be right.

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It does have an awful lot going for it.

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Number one, it's got its own private garden.

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How lovely! What a selling point!

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Number two, there's off-road parking, another real asset.

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Number three, planning permission to create a single-storey extension.

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This auction lot comes with full planning permission.

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What it means is, you could utilise the side return there.

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You could come right out.

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Adding this extension would transform the flat.

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The kitchen would turn into the bathroom,

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the second bedroom would gain so much more space

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and the kitchen and living room,

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that would be one large open area at the back of the property

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with lovely big doors leading out to the garden. Fantastic!

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The best news is that the extension doesn't just give you more space

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it increases the value significantly.

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It could add as much as £50,000 to the sale price.

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So, I think, well worth doing.

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There is one flaw in the plan,

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while that tiny second bedroom

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would steal much-needed space from the original bathroom,

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the plans allow for the rear living area

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only to be extended into the side.

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The second bedroom's French doors would open out to

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a bit of dead space.

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We invited a local estate agent to have a look at the flat

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that went to auction guided at £260,000.

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How does she think it presents itself as it stands now?

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# First impressions are lasting impressions

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-# I know, I know, I know. #

-First impressions of the property

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are a little tired,

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needs a little bit of help, a little bit of care and attention.

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What about the plans that came with a flat?

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The proposed plans are excellent

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either for the developer to do themselves,

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or to offer the property with those plans for future sales.

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Does she agree with me that the extension

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will add significant value to this property?

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With a little paint, I suggest that you could

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probably sell this property for around £375,000.

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Once developed, I would market the property around £425,000.

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I would seriously look at any offers over and above £410,000.

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Without the extension,

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the agent's rental valuation is £1,400 per calendar month.

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She suggests that could increase to £2,000 per month

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if the extension is built.

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A great little flat in a prime location

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with planning permission to extend and add value.

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This is a fantastic one to go for.

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Let's find out who fancied this Wimbledon winner

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when it went under the hammer.

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Lot 15, ground floor flat, Wimbledon SW19.

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Great location, you are just near the underground and shops.

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Let's start at 250 then. 250. 255.

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255, because I can see you. 260? 260. 265. 270. 275...

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Well, lots of interest in the auction room

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we rejoin the bidding at £350,000.

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..350. 351. 352? 352.

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353? 353 in the aisle. 354.

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It's Wimbledon! 355. Not far from the tennis courts. 356.

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356 standing up.

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357 sitting down. 358. 359.

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360? 360. 361.

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362? 361, first time, second time, third and last time.

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Are you all done? Sold! 361 sitting down. Sorry everyone else.

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That final successful bid of £361,000 was made by Frank.

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He owns a property developing and construction company

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with his son James.

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I met up with James at the flat to find out the plans for this place.

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James, congratulations. What a great flat.

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Yes, we're quite happy with it.

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Who spotted it in the auction catalogue?

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-My father.

-Did he?

-Yes.

-Tell me about your dad and the business.

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Basically, it's a family business.

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My father goes round, he buys the properties.

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He finds them and I build them for him. We work as a family team.

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It's not just me and my father, my wife's involved.

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Can you lend your hand to most things,

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or do you have a specific trade?

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I am actually a qualified gas engineer.

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I have that behind me but I do know every man's trade.

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I can tell if any man's trying to pull the wool over my eyes,

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or not doing a good job.

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I make sure that the best job is done at all times.

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James started working with his dad when he was 17.

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He got his gas qualifications and has worked on their building sites.

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Over the years, they have made many different redevelopment projects

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and even built eight new properties.

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Now, they are turning their attention to this place.

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This flat definitely gets better as it goes on.

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You walk in the door, it's a bit disappointing,

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and then it gradually gets a bit better. What did you like about it?

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I think it's because with the plans that has come with it,

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we'll open it right out to the back.

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As you come in, it is going to get better.

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Our new plans, we'll try and make the front half better as well.

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Hold on! So, you've changed the plans?

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Yeah. We weren't too happy with what it came with,

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so we're going to try and put an amendment in with planning.

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It's got a funny little dogleg on it at the moment.

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We're going to go straight across which will give us slightly more room

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and, hopefully, with a bit of luck, we'll get that.

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What'll it cost you to do the build? To do the extension?

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Considering we own our own construction firm,

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I would say around the 30 mark.

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Is anything worrying you? Anything keeping you up at night?

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To be honest, no. We have been doing this for a long time.

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It's not a large project, so I've kind of seen it all before.

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Hopefully, it should all go smoothly.

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Depending on the time it takes

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to get the revised planning application through,

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James hopes to get the flat completed in three to four months.

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His intention is to convert the basement into a utility room.

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If his amended plans are approved,

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he'll extend out into the void space at the side of the kitchen

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and relocate the bathroom to the original kitchen space.

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But I can see that you've decided to call that void area, the kitchen.

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Surely, that's going to be the same size as THIS kitchen,

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which currently is a bit of a negative.

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It's not big enough for the property.

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Yeah, I would agree with you on that.

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What we're going to do is build the shell first.

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We are going to look at re-evaluating it.

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It might end up being a large bathroom, possibly an en suite

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for the second bedroom

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and we might do a kitchen-diner.

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We're going to get the shell up first and see where we go from there.

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James, good luck with this.

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I hope you are successful with the planners.

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Thank very much.

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So, James has encountered

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nearly every problem a property can throw up.

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In my experience, there's always something

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that surprises you when renovating.

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Will he find any? And how will he get on amending those plans?

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You can find out, if he does it all

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in three to four months, later in the show.

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Today, I'm in the East Midlands

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heading for the outskirts of the bustling city of Derby.

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I'm going to a little village

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that sits within chanting distance of the Rams -

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that's Derby County Football Club to you and me.

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Just three miles from Derby city centre,

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in the suburbs is the village of Borrowash -

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a very popular place with commuters and a nice residential area.

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You've got yourself a cul-de-sac here, that's great news

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because the property I'm here to see is this.

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It's a two-bedroom semi-detached bungalow

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at a guide price of £70,000 plus.

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It looks OK, tender loving care needed at the front.

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Let's see what it's like inside.

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So, a nice secluded location and a neat little bungalow.

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A great property for a down-sizer or for an investor.

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Unless there are any nasty surprises, it bodes rather well.

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So, what's the layout? Interesting...

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Through the front door and on the right hand side, the loo.

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It looks like that hasn't been replaced

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since the property was built.

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A bit of time and effort in there would pay dividends.

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Interesting location. I don't know why I didn't expect to find it

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right by the front door, but that's where it is.

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Cupboard there, fairly old looking water heating system.

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You could create some space in the bathroom

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by taking that out and putting a combi boiler in.

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That would give you a bigger size family bathroom.

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A small single bedroom there

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and, on the other side, a reasonable size double.

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And then, a bit of a saving grace here, into the main living area.

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As soon as you walk through the door,

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you're struck by the big patio doors looking out into the garden.

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Really nice to see that. It lets loads of light into this room.

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We like that. Here's a classic from that era -

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sliding door leading to the kitchen. Not a bad size.

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Again, looks like it hasn't been replaced for a very long time.

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Spend a bit of money in there and in the bathroom.

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It is what it is. It's a well-proportioned bungalow.

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But to get the most out of this bungalow,

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you would need to drag it out of the 1960s.

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# And it's all just a little bit of history repeating... #

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These sliding patio doors really are a lovely feature.

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They lead out onto a half decent size garden

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with some good shrubs. A great space.

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Nothing untoward until you come over this way and then...

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# Dun, dun, da! #

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..it's a garage.

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That would be OK but, unfortunately, it is an asbestos garage.

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It would probably be OK

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as long as you don't break any of the asbestos panels.

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If you do decide to get rid of it,

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it has got to be done by a specialist.

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# ..Yes, I've seen it before

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# Just a little bit of history repeating. #

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I did say this was a nice place IF there were no nasty surprises.

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This is IT. But, garage aside, this is a property with possibilities.

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At the rear of the property, let's talk extension options.

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If you look down the row of bungalows,

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you can see somebody has done a classic thing for a bungalow,

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stick on a dormer. That is one option.

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The planning people would be approving of that

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especially if it was on the rear.

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The other option is to do what the neighbour here has done

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which is to stick an extension on the back.

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Either of those options are available.

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That kind of extension you could get away with

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without getting planning permission,

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although you would need building regulations,

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as long as it was within permitted development rules.

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A dormer, you would have to apply for planning permission.

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It would come down to whether or not it was financially worth it,

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or, if you're looking to live here,

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whether it gave you that extra space that you can't live without.

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A little beaut of a bungalow with not too many issues to address.

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Guided at 70,000 plus,

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let's see what the auctioneer who sold it, thinks about it.

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First impressions are, we have got a clean and tidy bungalow.

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It is not large and not up-to-date but many of these places aren't.

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It wouldn't take a lot of money to bring it into the 21st century.

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The kitchen is quite small

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and this would benefit from being larger.

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Other than putting a conservatory on the back of the lounge,

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it cries out for that,

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there isn't a lot you can do other than upgrade what's here.

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Keeping a close watch on your spending will be the key

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to turning this bedraggled bungalow into a little belter.

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Once renovated what could it sell for?

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I think this might fetch quite a good price

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because you don't need a lot of money to renovate it.

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It's already got double glazing.

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The kitchen is old-fashioned, it would be easy to refit this.

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I would say if you spent modest money on it,

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it would probably be worth up to £125,000.

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What about the rental market in this area?

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Would that be a sensible option?

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Renovated, it's got a rental value in the order of

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£450 to £475 per calendar month.

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One of the tricks with auctions

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is to spot those little properties that are good and honest.

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Yes, they need a bit of sorting out but, primarily,

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do that and you've got yourself a great house.

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That's exactly the situation here.

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

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Lot 25, two bedrooms, semi-detached bungalow.

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Who's got 72 to start me?

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72 he has, thank you. £72,000.

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73 is bid. At 73. 74. 75.

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75. 76. 77...

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There was a great deal of interest in this bungalow

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with offers flying in from all over the room.

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We rejoined the bidding at £96,500.

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..96,500. 97. 97,500. 98.

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98. 500.

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99. 500, sir? 500.

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99,500 against you. No?

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At £99,500 once, going twice.

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100. 500. 100,500. It's against you. No?

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At £100,500. Sold at the back.

0:19:420:19:46

# You can call me Mr Fix It whoa now... #

0:19:460:19:50

That successful bid of £100,500 came from Rob.

0:19:500:19:56

# ..They call me Mr Fix It. #

0:19:560:19:58

He is a self-employed property maintenance expert.

0:19:580:20:02

Rob plans to renovate the bungalow with help from his girlfriend,

0:20:020:20:06

Camilla, who is an office administrator.

0:20:060:20:09

I met with them to hear about their plans.

0:20:090:20:12

-Camilla, Rob, good to meet you both.

-Thank you.

0:20:120:20:14

Tell me why you wanted to buy the bungalow?

0:20:140:20:17

Basically, to make some money...

0:20:170:20:18

-OK!

-..to refurbish it and make a profit.

0:20:180:20:21

So why this particular place?

0:20:210:20:23

I thought it seems a very innocent property,

0:20:230:20:25

not been messed about with. You know, good area.

0:20:250:20:28

-And I could make a profit on it.

-What's your background, Rob?

0:20:280:20:31

I actually work in property maintenance in Newport Pagnell,

0:20:310:20:34

where I live.

0:20:340:20:35

-Newport Pagnell?

-Yes.

0:20:350:20:37

Right, as in, quite a long way away.

0:20:370:20:39

75 miles away, Newport Pagnell, yes, that's right.

0:20:390:20:42

I advertise locally as property maintenance

0:20:420:20:45

and I'm employed in people's private houses

0:20:450:20:48

to do anything property maintenance -

0:20:480:20:51

kitchens, bathrooms, decorating.

0:20:510:20:53

So, you've got a bit of experience in the whole sort of property world?

0:20:530:20:56

-Ten years, yes.

-So what tempted you up to Derby?

0:20:560:20:59

You couldn't afford things in Milton Keynes.

0:20:590:21:03

Yes, it's mainly the prices in Derbyshire

0:21:030:21:05

that brought me up this way.

0:21:050:21:06

Tell me about your background, Camilla?

0:21:060:21:09

I just do admin and I'm a mother with two kids.

0:21:090:21:13

-And much property experience?

-Not really.

0:21:130:21:16

I've got a degree in architecture, so I like design.

0:21:160:21:19

Tell me what you're going to do to this place to sort it out.

0:21:190:21:21

Basically, a complete refurbishment from top to bottom.

0:21:210:21:24

New kitchen, new bathroom. Central heating.

0:21:240:21:28

Or change the boiler, it's got radiators. Decoration, carpets...

0:21:280:21:32

What about outside? You've obviously got this slightly dubious garage.

0:21:320:21:36

I think I'll keep the garage.

0:21:360:21:38

I think it's OK, as long as you don't create dust from it by drilling holes

0:21:380:21:41

in it or anything like that.

0:21:410:21:43

Yes, it does look like asbestos.

0:21:430:21:44

It's better to have a garage than not have one.

0:21:440:21:47

And I'm just going to trim the trees, cut the grass,

0:21:470:21:49

tidy up the flowerbeds.

0:21:490:21:50

And how are you going to do that when you live 75 miles away?

0:21:500:21:54

I'm going to be coming up here during the week, on Monday,

0:21:540:21:57

-staying here until Friday and going back for weekends.

-Right.

0:21:570:22:01

# They call me Mr Fix It... #

0:22:010:22:04

Sounds like Rob and Camilla have done their homework.

0:22:040:22:07

Rob has really thought through the logistics

0:22:070:22:10

of how he's going to work here. Top marks from me.

0:22:100:22:13

-What is the timescale?

-Four to six weeks.

-Oh, wow.

0:22:140:22:18

-So, what's the budget?

-£8,000-£10,000.

0:22:180:22:21

And if you do it for that,

0:22:210:22:22

what kind of profit do you think you might be on for for this one?

0:22:220:22:25

I'm hoping to make a £10,000 profit.

0:22:250:22:28

Anything more than that would be a bonus.

0:22:280:22:30

And what is the plan for the future, Camilla?

0:22:300:22:32

Is it to sort of carry on with this whole thing?

0:22:320:22:34

Yeah, I think just to keep buying properties

0:22:340:22:37

and make the profit a little bit bigger every time. That's it.

0:22:370:22:40

-So you're just right at the beginning, really.

-Yes.

0:22:400:22:42

-Just a year into it.

-Property number two.

0:22:420:22:44

So, with this second property,

0:22:440:22:46

it might look like a fairly easy profit on the face of it.

0:22:460:22:50

But there's a lot of time and money to be spent here.

0:22:500:22:53

They looked at 24 properties before deciding on this one

0:22:530:22:57

and if time is money, you can add that time to the real costs so far.

0:22:570:23:01

Rob paid upfront for a broker fee and a mortgage arrangement fee,

0:23:010:23:06

as he needed to borrow to buy this property.

0:23:060:23:08

Add to that a valuation survey fee.

0:23:080:23:12

So, how much is his outlay so far, before any work begins?

0:23:120:23:16

I think about £800.

0:23:160:23:18

So, had you not got it, then, that would have just been...?

0:23:180:23:21

Absolutely. That's the gamble.

0:23:210:23:22

-The previous auction, you did that for a different property.

-Yes.

0:23:220:23:25

And you didn't get it.

0:23:250:23:27

Better to gamble wasting £800, than bidding on a property

0:23:270:23:32

and paying a 10% deposit that I would lose if it was un-mortageable.

0:23:320:23:36

-Well, congratulations. Good luck.

-Thank you very much.

0:23:360:23:39

-And I look forward to seeing how you get on.

-Thank you very much.

0:23:390:23:42

So, architectural experience and practical property experience,

0:23:430:23:48

a very good combination.

0:23:480:23:49

How will Camilla and Rob get on sorting this place out?

0:23:490:23:53

You can find out later in the show.

0:23:530:23:55

Coming up, in Blackhall, County Durham,

0:23:570:23:59

this lean-to might make you worry about the inside of the house.

0:23:590:24:04

It's actually really pleasant!

0:24:040:24:06

We return to Derby, where Rob's refurbishment

0:24:060:24:09

of this bungalow went down well with Camilla.

0:24:090:24:13

I'm quite impressed, actually, with what he's done.

0:24:130:24:16

And back in Wimbledon, James faced a dilemma.

0:24:180:24:21

Do we go for a standard specification, or do we try

0:24:210:24:23

and push the market a bit, go up on the spec?

0:24:230:24:26

Wimbledon in south-west London is synonymous

0:24:290:24:33

with the tennis championships.

0:24:330:24:34

# Anyone for tennis?

0:24:340:24:36

# Wouldn't that be nice? #

0:24:360:24:39

But it's not just Andy Murray fans who love the area.

0:24:400:24:44

With the station serving up good rail links to central London,

0:24:440:24:48

local properties are in high demand.

0:24:480:24:52

The two bedroom, garden flat in this property

0:24:520:24:54

was bought for 361,000 by James and his father, Frank,

0:24:540:24:59

who own a construction and property developing company.

0:24:590:25:02

The flat had planning permission to add an extension at the rear,

0:25:040:25:07

but James wanted to tweak that.

0:25:070:25:10

Hold on a minute! So, you've changed the plans?

0:25:100:25:12

Yeah, we're going to try to put in an amendment in with the planning.

0:25:120:25:15

Hopefully we'll get it.

0:25:150:25:16

It's just got a funny little dogleg on it at the moment -

0:25:160:25:19

we're going to try to go straight across with it,

0:25:190:25:21

which is going to give us slightly more room.

0:25:210:25:24

But would the planning department

0:25:240:25:25

say James was barking up the wrong tree?

0:25:250:25:27

Well, eight-and-a-half months later, back in Wimbledon,

0:25:290:25:32

it's game, set and match to James.

0:25:320:25:36

Because, after a delay, the plans were approved.

0:25:360:25:39

This super extension looks really great.

0:25:490:25:51

I love this decking and those bi-fold doors.

0:25:540:25:58

And look at the effect inside!

0:26:020:26:04

In the extra space James has gained,

0:26:040:26:06

this very high-tech kitchen has been installed.

0:26:060:26:10

James is understandably delighted with it.

0:26:160:26:20

Right, what we've done here is we've done this side return,

0:26:200:26:24

the infill back over here. The extension, as you can see,

0:26:240:26:30

the beam that comes all the way along here

0:26:300:26:31

is the line of the original building.

0:26:310:26:34

It stopped around about here, the existing building.

0:26:340:26:37

So from there on is a rear extension.

0:26:370:26:39

And then that's your site extension coming along there.

0:26:390:26:42

So it's added considerable square footage to the property.

0:26:420:26:44

We've got a very nice big open living area.

0:26:440:26:48

A nice, luxurious apartment.

0:26:480:26:50

Plenty of open space outside as well, once this is all opened up.

0:26:500:26:53

Definitely have some good parties here, I would say!

0:26:530:26:56

With the new kitchen located in the extension,

0:26:570:27:00

the original kitchen is now this five-star bathroom.

0:27:000:27:03

I'm really impressed with the finish in this flat. Top spec, for sure.

0:27:110:27:17

The second bedroom benefited, too,

0:27:170:27:19

expanding into the original bathroom and gaining two windows.

0:27:190:27:23

The master bedroom at the front has kept the same dimensions.

0:27:270:27:32

James had hoped to get this Wimbledon project

0:27:320:27:34

completed in three sets.

0:27:340:27:37

But it ran to a five set thriller, as he explains.

0:27:370:27:41

We're now quite a few months down the line,

0:27:410:27:43

but we lost coming up for four months due to party wall complications.

0:27:430:27:47

At one point, we just completely had to stop here.

0:27:470:27:51

James faced more delays and expense as the foundations

0:27:510:27:54

had to be increased due to the clay subsoil.

0:27:540:27:58

With the costs rising,

0:27:580:28:00

he called a meeting to discuss the next move for the interior design.

0:28:000:28:05

We sort of had to make a decision,

0:28:050:28:07

do we go for a standard specification,

0:28:070:28:09

or do we try and push the market a bit, go up on the spec?

0:28:090:28:12

And that's what we decided to do.

0:28:120:28:15

Well, a good call, I reckon.

0:28:150:28:16

On the original planning, there was a pair of patio doors,

0:28:230:28:26

as opposed to a set of sliding, folding doors.

0:28:260:28:29

And I just thought if we could open that up as much as possible

0:28:290:28:32

so, in the summertime,

0:28:320:28:33

you can almost feel like you're sitting in the garden.

0:28:330:28:36

So after the delayed start, once work began,

0:28:360:28:39

how often has James been on site?

0:28:390:28:42

Every day! Hands on, as well.

0:28:420:28:44

I did the heating system myself.

0:28:440:28:46

That's my trade, a heating engineer, along with my son.

0:28:460:28:49

I run the team of guys myself, so, every day.

0:28:490:28:52

The basement has been boarded

0:28:520:28:54

and will be the utility room with valuable extra storage space.

0:28:540:28:58

How much has the conversion cost?

0:28:580:29:01

We were going to spend 30, and I'd say we're closer to 60 now.

0:29:010:29:04

So quite a big increase, but hopefully worth it.

0:29:040:29:07

With the 361,000 James's father paid at auction,

0:29:070:29:11

that makes their total investment 421,000.

0:29:110:29:15

We invited two local property experts to view the flat.

0:29:170:29:20

What do they think of the finish James has achieved?

0:29:200:29:23

The kitchen and the living area are superb.

0:29:230:29:26

Nice, open-plan living, which is very common nowadays

0:29:260:29:29

and very sort of desirable.

0:29:290:29:31

The living space is very modern.

0:29:310:29:35

Good natural light. Bi-fold windows, very popular these days.

0:29:350:29:39

The bedrooms are both a very good size.

0:29:390:29:41

The bathroom is really, really nice, modern, very clean finish.

0:29:410:29:45

You can tell that there is good quality that has been

0:29:450:29:48

used in the bathroom as well.

0:29:480:29:51

How much could the flat sell for?

0:29:510:29:53

More than the £421,000 invested here?

0:29:530:29:57

I would market this property at £630,000

0:29:570:30:00

and look to achieve between 600 and 630,000.

0:30:000:30:03

If we were asked to market this property,

0:30:030:30:06

I would be hopeful of achieving £575,000.

0:30:060:30:09

That range of between 575 and 630,000 could mean a gross profit

0:30:090:30:15

of between 154 and 209,000, before tax and expenses.

0:30:150:30:21

OK. Yeah, we've actually turned down a figure over the six already.

0:30:210:30:27

But, yeah, very happy.

0:30:270:30:29

I mean the sort of 630-ish, or just below that,

0:30:290:30:31

we'd be quite happy. If not, we'll go for rentals.

0:30:310:30:34

OK, let's talk more figures.

0:30:340:30:36

How much rental income could the flat earn?

0:30:360:30:39

For rental per calendar month,

0:30:390:30:40

I'd put this between £1,700 and £1,800 per month.

0:30:400:30:43

If we were to let this property,

0:30:430:30:45

I'd expect to achieve £1,600 per calendar month.

0:30:450:30:48

Perhaps £1,700 per calendar month.

0:30:480:30:51

So a potential yield of 4% to 5% on the 421,000

0:30:510:30:56

they've invested here.

0:30:560:30:58

I thought it might be a bit higher.

0:30:580:30:59

I've had a couple of quotes around the 2,000 mark.

0:30:590:31:01

But 1,700 to 1,800, we'd be quite happy with that, really.

0:31:010:31:04

It's not bad at all.

0:31:040:31:06

Clearly, James's hard work will pay off

0:31:060:31:08

for the family development company.

0:31:080:31:11

But is his dad Frank happy with the end result?

0:31:110:31:14

He comes here all the time, has a little check up on what I'm up to.

0:31:140:31:17

No, he's over the moon. Very happy. He thinks we've done a good job!

0:31:170:31:21

And the latest news?

0:31:210:31:23

The two bedroom flat is currently under offer

0:31:230:31:26

at £591,500 from a cash buyer.

0:31:260:31:30

Today, I'm near the beautiful north-east coast of England,

0:31:330:31:36

in the village of Blackhall,

0:31:360:31:38

which developed around the colliery there before it closed in 1981.

0:31:380:31:42

It still has the hallmarks of a life built around the mines

0:31:420:31:45

and a really strong community spirit.

0:31:450:31:48

It's now a commuter village just off the A19

0:31:480:31:50

within easy reach of Durham.

0:31:500:31:52

# It's just a hop, skip and a jump

0:31:520:31:55

# To where my baby's at! #

0:31:550:31:57

Well, just a hop, skip and a jump from the centre of Blackhall,

0:31:570:32:01

is a two bedroom, end-terraced house with one of those guide prices

0:32:010:32:07

that just stops you in your tracks.

0:32:070:32:10

19,950 quid.

0:32:100:32:15

In 2012?!

0:32:150:32:17

# Isn't it cheap?

0:32:170:32:21

# Isn't it cheap? #

0:32:210:32:24

So, for that amount of money, a good roof and four walls,

0:32:240:32:28

and I think you'd be quids in. But, no, it's actually really pleasant.

0:32:280:32:32

You've got a little porch area there, keep the cold out.

0:32:320:32:35

And then through into a really decent-size living room.

0:32:350:32:38

A bay window there, you've got an open fire. Nice high ceilings.

0:32:380:32:43

Not seeing anything I don't like so far.

0:32:430:32:45

Through to this slightly green middle part of the house.

0:32:450:32:49

You've got a downstairs bathroom there. Upstairs to your bedrooms.

0:32:490:32:52

And then through on into the kitchen.

0:32:520:32:54

And again, nothing here I'm seeing I don't like.

0:32:540:32:57

It's a little bit in need of tender loving care,

0:32:570:33:00

but a half-decent size.

0:33:000:33:02

Door out to a little sort of lean-to area there

0:33:020:33:05

and on into the back garden.

0:33:050:33:06

For that amount of money, this is great!

0:33:060:33:10

# That is excellent!

0:33:100:33:13

# Oh, yes, that's excellent! #

0:33:130:33:16

For that guide price of 19,950,

0:33:160:33:20

this really does look like an excellent buy.

0:33:200:33:23

I hope I'm not going to be disappointed.

0:33:230:33:26

The bathroom suite's in good condition. It just needs re-tiling.

0:33:260:33:30

I wonder if the first floor's going to be excellent, too?

0:33:300:33:34

So, upstairs and, sadly, no bathroom or loo here,

0:33:340:33:38

it is just the one downstairs. So, would you move it? I don't know.

0:33:380:33:41

It's certainly an interesting layout. Quite a small rear bedroom.

0:33:410:33:45

And then a really big front bedroom.

0:33:450:33:48

For a family, this might actually work quite well.

0:33:480:33:51

But maybe you could think about playing around

0:33:510:33:53

with some of the walls.

0:33:530:33:54

Feels like it might be a stud partition.

0:33:540:33:56

So something you could potentially do there.

0:33:560:33:58

But before you do that,

0:33:580:34:00

you need to find out what's going on with the ceiling here.

0:34:000:34:03

Hopefully, it's just a bit of loose plaster.

0:34:030:34:06

Worst case scenario, something going wrong with the roof.

0:34:060:34:10

That could be expensive.

0:34:100:34:12

Touch wood, it's nothing serious.

0:34:120:34:14

Maybe not this wood, it might all come crashing down.

0:34:140:34:17

But judging by a quick look from outside,

0:34:170:34:19

the roof doesn't look too bad.

0:34:190:34:21

Although I'd always advise getting it checked out.

0:34:210:34:24

The front of the house has a very pleasant outlook

0:34:240:34:26

across to this church.

0:34:260:34:28

And the windows and rendering seem in good nick, too.

0:34:300:34:33

Well, at the rear of the property,

0:34:330:34:35

a bit of a mishmash of this sort of lean-to, conservatory thing,

0:34:350:34:39

some outbuildings, some outdoor storage as well.

0:34:390:34:43

You might consider doing what the next-door neighbours

0:34:430:34:46

have done and put a really nice kind of extension on here.

0:34:460:34:49

But you've got the space to do it,

0:34:490:34:51

and the fact you've got these buildings here means

0:34:510:34:53

that you wouldn't have to apply for planning permission.

0:34:530:34:55

Building regulations, yes, but not planning permission.

0:34:550:34:58

It is always wise to talk to your local planning department

0:34:580:35:01

before you do anything.

0:35:010:35:03

But with the neighbours' extension as a precedent

0:35:030:35:06

and the buildings that are already here,

0:35:060:35:08

''it's looking pretty promising.

0:35:080:35:10

As does this whole house for that guide price of just under £20,000.

0:35:100:35:15

We asked along a local property expert to tell us

0:35:150:35:19

what he thought of this auction lot.

0:35:190:35:21

What does he make of the upstairs layout?

0:35:210:35:24

Would he recommend altering it?

0:35:240:35:27

I suppose you could separate the two rooms to create three bedrooms.

0:35:270:35:31

The bathroom is downstairs. A lot of people like a bathroom upstairs now,

0:35:310:35:36

so you could move the bathroom up there.

0:35:360:35:38

Assuming no major configuration but a new central heating system

0:35:380:35:42

and a general refurbishment were carried out,

0:35:420:35:45

what could this end of terrace fetch on the open market?

0:35:450:35:50

I would expect it to achieve between £70,000 and £75,000.

0:35:500:35:53

What rental return could it earn?

0:35:530:35:57

In the current rental market,

0:35:570:35:59

I would expect to achieve about £450 per calendar month.

0:35:590:36:03

If you're looking for a property bargain,

0:36:030:36:06

it's clear where you have got to come.

0:36:060:36:08

Blackhall.

0:36:080:36:10

Let's see if this place went for

0:36:100:36:12

anything like that £19,950 plus guide price

0:36:120:36:15

when it went under the hammer.

0:36:150:36:17

We're going to move now down to Blackhall. This is lot number two.

0:36:170:36:21

Two bed, end-terraced house.

0:36:210:36:24

It's got the off street parking, solid fuel heating,

0:36:240:36:27

enclosed garden and a yard.

0:36:270:36:29

We've got this in with a price guide of £19,950 plus.

0:36:290:36:34

Can I ask for £20,000 to start anywhere?

0:36:340:36:36

£20,000 on the left-hand side. 22? 22 bid.

0:36:360:36:39

24? 24 bid. 26? 26 far right.

0:36:390:36:45

28? 28 bid. 30.

0:36:450:36:47

No? I will take one if it'll help.

0:36:470:36:50

Lady standing, £29,000. 30. 31? 31 bid.

0:36:500:36:56

32? 32 bid. 33? I'll take 500.

0:36:570:37:02

32,500 bid. 33 new bidder. 33,500? No?

0:37:020:37:06

33,500 bid. 34? 34 bid. 34,500?

0:37:060:37:12

34,500 bid on the telephone.

0:37:120:37:13

35? 35 bid.

0:37:130:37:16

35 in the room. Are you both out on the phone?

0:37:160:37:18

35,500 from either? No?

0:37:180:37:21

I am selling once at 35, and I am going quick.

0:37:210:37:24

I'm selling for the second time at £35,000.

0:37:240:37:27

Sold to the gentleman on the right-hand side.

0:37:270:37:30

That final bid of £35,000 was made by Kami,

0:37:300:37:32

who was at the auction with his daughter.

0:37:320:37:35

High-fives all round.

0:37:350:37:38

Kami is a property developer from Newcastle with a large portfolio.

0:37:380:37:44

He has been on the programme before

0:37:440:37:45

when he bought another property in Blackhall.

0:37:450:37:48

I met up with him back at his latest purchase

0:37:510:37:54

to hear about his plans for it.

0:37:540:37:57

-Kami, great to see you...again!

-Time flies.

-It does indeed.

0:37:570:38:02

-How did you get on with the last project? How did it go?

-Good.

0:38:020:38:06

It's done and dusted. The tenants have moved in and are happy.

0:38:060:38:09

-So, you're obviously a fan of the area.

-I love the area.

0:38:090:38:12

Blackhall's the place to be, nice people. That's the main thing.

0:38:120:38:15

Tell me why you wanted to buy this house?

0:38:150:38:17

This is the posh end of Blackhall.

0:38:170:38:19

Where you went last time was the colliery's.

0:38:190:38:21

They were built for the men down the mines. This is the top end,

0:38:210:38:25

this is the posh end.

0:38:250:38:27

-Remind me how many properties do you have?

-I've lost count.

0:38:270:38:30

-More than 10, less than 100?

-Something like that.

0:38:300:38:34

Kami's been a property developer for over 10 years

0:38:340:38:39

and frequently buys

0:38:390:38:40

both commercial and residential properties at auction.

0:38:400:38:43

He has a team of tradesmen he uses to carry out quick refurbishments.

0:38:430:38:48

So, this one in the posh bit, apart from that, why this house?

0:38:480:38:52

To be honest, I had never seen it. This is the first time I've seen it.

0:38:520:38:57

I saw it advertised as a two-bedroom and freehold.

0:38:570:38:59

Had you looked into it before the auction?

0:38:590:39:02

-I got the papers, the magazine.

-Had you read the legal pack?

0:39:020:39:05

-I never read the legal pack.

-Oh!

-Isn't that bad?

-Yes.

0:39:050:39:08

But I buy them all in the same area,

0:39:080:39:10

all legal packs are the same if you buy in the same area.

0:39:100:39:13

-Not necessarily.

-Is it not?

-No.

-Ah, well.

0:39:130:39:17

Kami is pretty laid-back about buying property

0:39:170:39:22

and doesn't seem to worry about taking a chance.

0:39:220:39:26

# Breaking the rules

0:39:260:39:30

# Reckless and taking chances just the same. #

0:39:300:39:37

Essentially, this is a good basic house

0:39:370:39:40

but you could change the layout.

0:39:400:39:42

So, will Kami be getting his sledgehammer out?

0:39:420:39:46

What are you going to do to sort it out?

0:39:460:39:48

A total refurb. Windows, doors, kitchen, floor and bathroom.

0:39:480:39:52

What about layout? Is that big wall behind me coming down?

0:39:520:39:55

No, I never take any walls down. Keep them all in.

0:39:550:39:58

Once you start taking walls out, you're talking major work.

0:39:580:40:01

It's a strange situation with a very small

0:40:010:40:03

bedroom and a big bedroom.

0:40:030:40:05

Have you thought about equalising the sizes?

0:40:050:40:07

No, I'm going go leave them the way they are.

0:40:070:40:10

So, what sort of budget have you got for this one?

0:40:100:40:12

I think 12 to 13,000 max.

0:40:120:40:15

-Eight week turnaround.

-Eight weeks?

0:40:150:40:18

-So, a bit longer for this one?

-Yeah.

0:40:180:40:19

I think some of the back walls need taking out,

0:40:190:40:22

-which might take a couple of weeks.

-Right!

0:40:220:40:26

Ah! So, some walls will be coming down after all.

0:40:260:40:29

Kami's taking a cautious route here by not over-spending.

0:40:290:40:34

After all - these ARE tough times.

0:40:340:40:36

But that's not holding HIM back.

0:40:360:40:39

Nobody's got any money, have they? And prices are dropping.

0:40:390:40:42

If you can borrow money, it's time to buy really.

0:40:420:40:45

-And rent's pretty good.

-Rents are still the same. £400, 440 a month.

0:40:450:40:49

And this one will get a little bit more rent?

0:40:490:40:51

No, I'll charge the same.

0:40:510:40:53

-Even though it's the posh bit?

-Even though it's the posh bit!

0:40:530:40:56

Kami has found a niche at the more affordable end of the housing market

0:40:560:41:00

and it's a strategy that's served him well.

0:41:000:41:03

So, how was the auction? Were you happy with what you paid for it?

0:41:040:41:07

Yeah. I thought it was a really good price.

0:41:070:41:09

I thought it might have gone for about 50.

0:41:090:41:11

I was quite prepared to go to 50.

0:41:110:41:13

And what do you put the low price down to?

0:41:130:41:15

Cos it's a lot of house for the money, isn't it?

0:41:150:41:17

I think it's just luck at the end of the day. Sometimes you can go to

0:41:170:41:20

the auction and get nothing. The last one I bought was a proper bargain.

0:41:200:41:23

As opposed to this, which is just a medium bargain?

0:41:230:41:26

Last one was 27 grand for a two-bedroom house with a garden.

0:41:260:41:28

-Right!

-That's a bargain, isn't it?

0:41:280:41:30

-A proper bargain.

-A proper bargain, that!

0:41:300:41:32

# I call that a bargain

0:41:320:41:35

# The best I ever had. #

0:41:350:41:39

Kami might believe that the £35,000 he paid for this house

0:41:390:41:43

isn't such a bargain but, considering its condition,

0:41:430:41:46

I reckon that's exactly how it looks.

0:41:460:41:48

So, another property in Kami's property portfolio cap

0:41:500:41:55

and, once again, breaking all the rules -

0:41:550:41:57

not reading the legal pack, not visiting beforehand.

0:41:570:42:00

You can get away with it but if it goes wrong, it goes wrong big time.

0:42:000:42:04

How will he get on sorting this place out?

0:42:040:42:06

You can find out later in the show.

0:42:060:42:08

Once you've bought your property, the hard work really starts,

0:42:110:42:15

and you have to be prepared for some surprises along the way.

0:42:150:42:19

So, have our buyers unearthed any hidden treasures,

0:42:190:42:22

or uncovered any pitfalls? Let's find out.

0:42:220:42:25

We return now to the East Midlands village of Borrowash,

0:42:280:42:31

a suburb of the city of Derby, where Rob had bought this two-bed,

0:42:310:42:35

semi-detached bungalow for £100,500.

0:42:350:42:39

He lives 75 miles away in Newport Pagnell near Milton Keynes,

0:42:410:42:45

where he works, self-employed, doing property maintenance.

0:42:450:42:48

But he was attracted to the property prices in Derby.

0:42:490:42:53

His girlfriend Camilla is a trained architect and set designer,

0:42:530:42:56

currently doing admin work.

0:42:560:42:59

But her skills were going to come in handy for Rob

0:42:590:43:02

as he planned to refurbish the bungalow.

0:43:020:43:05

He hoped to make £10,000 profit,

0:43:050:43:07

which he'd reinvest into another property.

0:43:070:43:11

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

0:43:110:43:13

Basically, a complete refurbishment from top to bottom.

0:43:130:43:16

New kitchen, new bathroom, central heating,

0:43:160:43:19

change the boiler, it's got radiators, decoration, carpets.

0:43:190:43:24

And how are you going to do that when you live 75 miles away?

0:43:240:43:26

Cos I'm going to be up here during the weeks on a Monday,

0:43:260:43:30

staying here till Friday, and going back for weekends.

0:43:300:43:33

# I just stay

0:43:330:43:36

# A long way from home. #

0:43:360:43:39

Rob set a budget of £8-10,000 and was going to take a six-week break

0:43:410:43:46

from his normal business to concentrate on the bungalow.

0:43:460:43:49

Well, seven weeks later, we're back.

0:43:510:43:53

The old paving slabs have been replaced by new shingle,

0:43:550:43:58

which gives a much improved kerb appeal.

0:43:580:44:00

I'm not sure if I like the bathroom being the first room that greets you

0:44:030:44:08

in the hall, but I do approve of Rob's new suite and choice of tiles.

0:44:080:44:12

At the front of the bungalow,

0:44:170:44:18

Rob's gone for a classic, neutral colour scheme

0:44:180:44:21

in the front bedroom.

0:44:210:44:22

Replacing these dark doors has made such a difference throughout.

0:44:250:44:29

The neutral tone continues in the master bedroom.

0:44:300:44:34

It's no coincidence

0:44:350:44:37

that so many new-builds go down that route as well.

0:44:370:44:40

And it's the look Rob's chosen for the lounge as well.

0:44:430:44:46

So in here, I stripped off all the wallpaper that was woodchip,

0:44:480:44:52

painted magnolia walls, white ceiling, white doors, white skirting

0:44:520:44:57

and had a neutral carpet fitted.

0:44:570:44:59

The lounge and the whole house,

0:44:590:45:01

I'm really pleased with how it's turned out. I really like it.

0:45:010:45:04

The bungalow has been rewired and Rob's invested in quality sockets,

0:45:040:45:09

which add to the overall polished effect.

0:45:090:45:12

OK, so the kitchen is not massive but, again,

0:45:120:45:15

he's maximised what was here.

0:45:150:45:17

So, in the kitchen, all new cupboards, new tiles,

0:45:190:45:23

new hob, new oven, new flooring,

0:45:230:45:26

and this cupboard was a problem before because the worktop

0:45:260:45:31

couldn't come across in front of it, and so I made the doors to suit.

0:45:310:45:36

I'm very pleased with how the kitchen's turned out.

0:45:360:45:39

Apart from the odd day off and a week's work back in Newport Pagnell,

0:45:390:45:43

Rob and his friend, Ash, have worked five days a week on the bungalow.

0:45:430:45:47

So he did only take six weeks as he'd planned.

0:45:470:45:51

He had to employ a qualified electrician

0:45:510:45:53

and gas fitter for the boiler.

0:45:530:45:55

How much design input has Camilla been able to give?

0:45:550:45:58

Well, I thought I might be able to have a bit of input with

0:45:580:46:01

the design but, to be honest,

0:46:010:46:03

I think you had that all sussed anyway.

0:46:030:46:06

It seems Rob's got a good eye for design.

0:46:080:46:10

He wants to dress the bungalow as a new-build show house.

0:46:100:46:13

I thought when you buy a new house,

0:46:150:46:17

the house is dressed as if you could move straight in, so I thought,

0:46:170:46:21

without going too far, I wanted to give that look. So I bought

0:46:210:46:25

some second-hand furniture and a few cushions and things to dress

0:46:250:46:30

the house cos I thought that'd help make it sell.

0:46:300:46:33

It has such a nice feeling to it. And I like all the colours.

0:46:330:46:36

You've done purples and beiges and soft blues.

0:46:360:46:38

I'm quite impressed actually with what he's done.

0:46:380:46:42

Outside, Rob's tidied up the garden but has decided to leave

0:46:420:46:46

the asbestos garage as it wasn't damaged

0:46:460:46:49

and will be useful storage space.

0:46:490:46:51

How much has the work cost?

0:46:530:46:55

Did Rob manage to stick to his £8-10,000 budget?

0:46:550:46:59

I've come in at 10,000. So on budget.

0:46:590:47:03

That takes Rob's total investment here to £110,500.

0:47:030:47:08

Time to hear what the auctioneer who sold it and viewed it originally

0:47:100:47:14

and another local property expert think of the finished bungalow.

0:47:140:47:18

The change is quite dramatic from when I last saw it.

0:47:200:47:23

It's tidy, clean and very appealing.

0:47:230:47:26

The look of it is pretty well what I expect. The finish looks good.

0:47:260:47:30

It's obviously been done to appeal to a certain market,

0:47:300:47:34

which is fine, and I think it's been pretty successfully done.

0:47:340:47:38

This is a nice location. It's a quiet cul-de-sac.

0:47:380:47:41

It would appeal to all markets but probably,

0:47:410:47:44

because it's a bungalow, mainly older people.

0:47:440:47:46

So what rental potential can these two local property experts

0:47:460:47:51

predict for the bungalow? How much income could it generate?

0:47:510:47:54

I think they would be able to rent it

0:47:540:47:56

in the region of £550 per calendar month.

0:47:560:47:59

The rental value would be about £525, £550 a calendar month.

0:47:590:48:04

So a rental yield of over 5.5% if Rob decided to let

0:48:040:48:10

but his plan has always been to sell.

0:48:100:48:12

So, how much is the bungalow now worth?

0:48:120:48:14

More than the £110,500 he's invested here?

0:48:140:48:18

An appropriate asking price would be around £139,950.

0:48:200:48:25

I would estimate selling it in the region of £140,000.

0:48:250:48:29

The top valuation only differs by 50 quid,

0:48:290:48:32

so Rob could make a profit of around £29,500 before taxes and expenses.

0:48:320:48:38

Spot-on.

0:48:400:48:41

That's what I thought, that's what I hoped for, so very pleased.

0:48:410:48:45

Considering he was hoping to come out with a £10,000 gross profit

0:48:450:48:49

to carry forward to his next project, it sounds like

0:48:490:48:52

there could be another £19,500 to put into the equation.

0:48:520:48:56

-This was a good scale project for you, wasn't it?

-Yes.

0:48:560:49:00

Not too big cos you've got other work to do and you can make a little

0:49:000:49:03

bit more money every time, and it will just grow and grow.

0:49:030:49:06

Like Camilla, I think Rob's being very sensible to start small

0:49:060:49:10

and think big.

0:49:100:49:11

I'd like to become a developer and I'd like to do three or four a year.

0:49:130:49:19

Earlier in the programme we visited the north-east of England.

0:49:260:49:29

With its beautiful beach, it's no surprise that the former

0:49:290:49:32

mining village of Blackhall is popular with commuters,

0:49:320:49:35

as it also offers good road links to the nearby A1.

0:49:350:49:38

It was at this end-of-terrace that we met or rather re-met Kami,

0:49:400:49:45

a property developer who has featured on

0:49:450:49:47

Homes Under The Hammer previously.

0:49:470:49:50

This time around, he'd paid £35,000 for this house

0:49:500:49:54

to add to his growing buy-to-let portfolio.

0:49:540:49:57

Kami likes to take a high-risk strategy approach to property.

0:49:570:50:02

-Did you read the legal pack?

-I never read the legal pack. Isn't that bad?

0:50:020:50:05

Yes!

0:50:050:50:07

But I buy them all the time in the area

0:50:070:50:08

and all the legal facts are the same if you buy in the same area.

0:50:080:50:11

-Not necessarily.

-Isn't it?

-No!

0:50:110:50:14

Oh, well.

0:50:140:50:15

Boy! Fortunately Kami does have expertise

0:50:150:50:18

and a team of reliable builders to do all the work.

0:50:180:50:22

His plan was to replace the kitchen and bathroom

0:50:220:50:24

and decorate throughout, but not much else.

0:50:240:50:28

What about layout?

0:50:280:50:30

You've got a big wall behind me. Is that coming out?

0:50:300:50:32

No, I never take any walls out.

0:50:320:50:34

Once you start taking walls out, you're talking major work.

0:50:340:50:38

Kami had set a budget of £12-£13,000

0:50:380:50:41

and eight weeks to do the work.

0:50:410:50:43

But it's now 17 weeks later,

0:50:450:50:47

and we've returned to see the completed property.

0:50:470:50:51

The house has a new front door and porch.

0:50:530:50:56

The garden's had a tidy-up but is still work in progress.

0:50:560:50:59

At the back, Kami's kitchen is a real eye-opener.

0:51:030:51:07

He's chosen mid-range units and appliances, which look good.

0:51:080:51:12

And losing units from one wall does make the room feel bigger.

0:51:140:51:18

The laminate flooring through to the living room opens the house up too.

0:51:190:51:25

And that dated fireplace went to the skip.

0:51:250:51:28

The new bathroom suite includes a shower and it works well.

0:51:300:51:34

Beside the kitchen was a timber extension known locally

0:51:360:51:40

as an off-shot, but Kami decided there was only one type

0:51:400:51:44

of timber he wanted outside the back door.

0:51:440:51:47

The decking, we got in because we got rid of the off-shot

0:51:470:51:50

and it was wasting time not doing anything.

0:51:500:51:52

We knocked it down and we put the decking in.

0:51:520:51:54

It was quick, it was easy. Took about three or four hours to put it in.

0:51:540:51:58

In the summertime, it's really nice when the sun's shining,

0:51:580:52:02

-you can get your deckchairs out and just chill.

-Yes.

0:52:020:52:05

Pop a few flowerpots out there, get the barbie on the go

0:52:050:52:09

and it could be very nice.

0:52:090:52:10

The work's taken around 12 weeks but the start was delayed

0:52:120:52:15

as Kami needed to get the gas supply relocated.

0:52:150:52:18

This is the gas meter which was originally in the kitchen.

0:52:180:52:21

It took 12 weeks for the guys to come and change the gas meter

0:52:210:52:23

from the kitchen to outside. Apart from that - no delays.

0:52:230:52:26

That was the only thing that kept us back.

0:52:260:52:28

As well as the new back door,

0:52:280:52:31

the rear windows have also been replaced.

0:52:310:52:33

And upstairs, the neutral colour scheme continues.

0:52:360:52:39

Kami has installed new central heating and had a new combi boiler

0:52:410:52:46

put in the big bedroom.

0:52:460:52:47

However, I don't think that's an ideal position as, even if

0:52:470:52:51

you follow all the regulations and have a carbon monoxide alarm,

0:52:510:52:54

there's the noise issue.

0:52:540:52:57

Also, apart from anything else,

0:52:570:52:58

it's not the most attractive bedroom feature.

0:52:580:53:01

I think he'd have been far better off putting it in the kitchen

0:53:010:53:04

and after all, there is room now.

0:53:040:53:06

But what about the problem with that hole in the ceiling

0:53:060:53:09

in the front bedroom?

0:53:090:53:11

There was a hole in the ceiling upstairs in the main bedroom.

0:53:110:53:14

The guy I bought the house off did fix the hole but never skimmed

0:53:140:53:17

the ceiling, so we skimmed the full room so we got rid of the hole.

0:53:170:53:21

The house has been rewired throughout,

0:53:210:53:23

and all the walls have been skimmed. But in the smaller rear bedroom,

0:53:230:53:27

it's still going to be a challenge to squeeze in much more than a bed.

0:53:270:53:32

Kami always uses local tradesmen on his property refurbishments,

0:53:320:53:36

so what skills did his team bring to this project?

0:53:360:53:40

I've got a plumber, electrician, a joiner, plasterer,

0:53:400:53:45

and a painter as well. They're called the BBC - Bad Boy Crew.

0:53:450:53:48

They're a good set of lads and they've been with us for a while.

0:53:480:53:52

How much has the refurbishment cost?

0:53:520:53:54

Did Kami stick to his initial budget of 12 to 13,000?

0:53:540:53:57

The budget I had was 11 grand for the house.

0:53:590:54:01

I think I went about 300, 400 quid more. That's it - tops.

0:54:010:54:05

Well that Bad Boy Crew have done him proud.

0:54:050:54:07

He's come in under his initial budget, and that £11,400 he's spent

0:54:070:54:12

takes his total investment here to £46,400.

0:54:120:54:17

We invited two local estate agents to come

0:54:190:54:22

and have a look at the house and the work that Kami's team have done.

0:54:220:54:26

What are their impressions of it?

0:54:260:54:28

First impressions of the property are quite good.

0:54:280:54:31

It's been done to a moderate standard.

0:54:310:54:33

Kitchen's good, bathroom's good

0:54:330:54:34

and I'd expect it to rent out straight away.

0:54:340:54:36

I particularly like the kitchen area.

0:54:360:54:38

It has been refurbished to a good standard. It's a good size.

0:54:380:54:41

Because there isn't a separate dining area,

0:54:410:54:43

it's good that the owner has put a breakfast bar in there.

0:54:430:54:46

There's a ceiling price with these properties,

0:54:460:54:49

you can't go over that. If they spend too much money,

0:54:490:54:52

it would've been a white elephant.

0:54:520:54:54

I feel there are still some works to be done externally.

0:54:540:54:57

The front garden area would be nice if it was laid to lawn

0:54:570:55:00

and just finished off.

0:55:000:55:02

Kami has £46,400 invested in the property so how much do

0:55:020:55:07

the estate agents think the house could sell for

0:55:070:55:10

if it was put up for sale?

0:55:100:55:11

I would advise to put it on the market for £65,000.

0:55:110:55:15

If I was to place the property on the market currently,

0:55:150:55:17

I would look to market it at offers around £70,000.

0:55:170:55:20

That valuation range of 65 to 70,000 would generate a gross profit

0:55:200:55:25

of between £18,600 and £23,600 before taxes and expenses.

0:55:250:55:31

If you asked me before, that's exactly what I would've said.

0:55:310:55:34

65 to 70. That's fair.

0:55:340:55:37

But Kami's going to add this house to his growing buy-to-let portfolio.

0:55:370:55:41

He's already got a tenant lined up,

0:55:410:55:43

so what sort of rent could he be charging?

0:55:430:55:45

If the owner's looking to put the property on the rental market,

0:55:450:55:48

I'd hope for it to achieve somewhere around £450 per calendar month.

0:55:480:55:52

I would suggest to put the property on for rental at around £450

0:55:520:55:57

per calendar month.

0:55:570:55:59

Those rentals would yield over 11.5% on Kami's investment.

0:55:590:56:04

So, is his tenant paying over £450 a month?

0:56:040:56:08

I've done it for 440, 110 quid a week. My tenant is nice, young lady.

0:56:080:56:12

She's moving in later today. She is very, very happy with the property.

0:56:120:56:16

And so is Kami.

0:56:160:56:18

It looks as though his high-risk strategy of not looking

0:56:180:56:21

at the property before purchasing it has paid off again,

0:56:210:56:24

but, please, don't try this at home.

0:56:240:56:27

Clearly he's going to continue in his own sweet way,

0:56:270:56:30

and see a silver lining in today's tougher property market.

0:56:300:56:34

Since filming, he's bought another three properties.

0:56:340:56:37

While the properties are cheap, I can't help buying them.

0:56:370:56:40

Even though I don't want to buy a property, the estate agent

0:56:400:56:43

rings me up and says, "I've got this for sale," and I just can't say no.

0:56:430:56:46

The Bad Boy Crew love it as well

0:56:460:56:47

cos they've always got work to do, so it's all good.

0:56:470:56:50

We hope you've enjoyed watching Homes Under The Hammer.

0:56:520:56:55

We will have more stories from the auction rooms for you next time.

0:56:550:56:59

-Look forward to seeing you then.

-Goodbye.

-Goodbye.

0:56:590:57:02

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0:57:200:57:23

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