Episode 8 Homes Under the Hammer


Episode 8

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In today's more challenging market, do you think you could hack it in the world of property?

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It can be an exciting way to earn money.

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And it can be even more rewarding

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if you buy your home under the hammer.

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There are tense moments in the auction room,

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who will make the right bid at the right time?

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Oh, yes, properties can change people's fortune for ever,

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for better or for worse.

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Here's what inspired our buyers on today's show.

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'First up, I'm feeling waves of nostalgia at this house in Cumbria.'

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Do you remember these telephones? Oh, the noise, the dialling, ah.

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'In Cardiff, it's waves of colour that are crashing over me.'

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Wow, look at the pink paint in this flat.

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'But I'm still stuck in the past at this property in Devon.'

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The old serving hatch here, therefore,

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through here, the kitchen.

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'All these properties went to auction,

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'we'll find out who bought them,

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

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It's yours, sir.

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Today, I'm in Dalton-in-Furness,

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the ancient and historical capital of the area.

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It's got its own 14th century castle,

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a tower house that was built by the Abbot Furness.

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Dalton is less than 30 miles from the Lake District

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and is a quiet but charming Cumbrian town.

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Well, close to the town centre, in a really popular area,

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is the property I'm here to see.

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There, it's not a tower house, but a townhouse.

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In this lovely, elevated position, three bedrooms,

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at a guide price of £65,000 plus, sounds quite cheap.

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Let's take a look.

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'The property sits on a hill overlooking the town,

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'which makes for a very pleasant view,

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'so, will be inside of the house be as pleasing to the eye?'

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Ah, ah, nice entrance hallway here, and straight away,

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I'm seeing these lovely little features.

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I hope the rest of the house is similar.

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And, oh, look at that, do you remember these telephones?

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Oh, the noise, and the dialling, oh, fantastic.

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And I suppose if you buy the house, you get that as well.

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Absolutely perfect.

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But through into a rear living room area here, kitchen at the back,

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where you might expect it to be,

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and then a really nice bay fronted window there.

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That's not good.

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That, really isn't, oh, my word.

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As you walk towards this corner of the property

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at the front here, you actually feel yourself walking downhill.

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There is something seriously nasty going on in this corner.

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Lots of cracking around the ceiling there.

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Wow, I need to investigate upstairs.

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That damage could be the sign of subsidence,

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which could be disastrous. And with those sloping floor boards,

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I certainly don't think this would ever be a great billiard room.

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So, are there any more surprises upstairs?

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Let's see what else there is,

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first, though, there's a bathroom and toilet there,

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it's a good sized space. Rear bedroom, again, not bad.

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But this is the room I'm really interested in, front bedroom,

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and, oh, yes, oh, boy,

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uh, it's upstairs as well, not surprisingly.

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There's plaster coming off, lots of cracks,

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I mean, it seems like this corner of the property has sunk,

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for whatever reason, maybe drains,

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maybe water ingress, maybe subsidence.

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Whatever happens, you need a survey.

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Oh, boy, you certainly do.

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That survey will be very interesting,

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as the big loft area at the top of the house

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could do with a few checks too.

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But it's a fantastic space. With a clever bit of renovation

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it could give you a fourth bedroom in this house.

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But unfortunately, at the back, the garden doesn't offer as much space.

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Well, at the rear of the property,

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if you're expecting an extensive garden,

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you're going to be slightly disappointed.

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There is, in fact, this very small, little courtyard area,

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but really good news, there is also a garage.

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Now, parking around here is not easy, so having this is a real bonus.

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So, the lack of outside space is made up for by the garage,

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which provides valuable off-street parking.

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This property has a lot going for it,

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whilst I'm concerned about the potential subsidence issues,

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with a guide price of £65,000, I think, in the right hands,

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there could be money to be made here.

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But, does a local property expert agree?

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We asked the auctioneer who sold it for his thoughts on the place.

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The positives of this property is its proximity to the town centre,

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within short walking distance.

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It has a good number of rooms, good-sized rooms,

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and great potential.

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It does need a programme of modernisation,

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so, there's a lot of work to do, not for the fainthearted,

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but it's a good, substantial property.

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Once refurbished, in pristine condition,

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I would expect it to achieve in excess of £120,000.

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That's a fantastic £55,000 over the guide price of 65,000,

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but what could it achieve if the buyer decided to let it out?

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Once fully renovated, this property would achieve,

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on the rental market, a sum of £450 per calendar month.

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Well, there are lots of really positive things about this property,

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the location, I like the elevated position,

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I like the layout inside, I like the garage.

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But that serious subsidence, or whatever it is,

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it would put a lot of people off, including, possibly, me.

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

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Lot number six, ladies and gentlemen,

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we're off down to Dalton-in-Furness, a lovely spot.

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At £60,000, am I bid?

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At £60,000, anywhere? 60, I've got, at £60,000 we're away.

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61, anyone? 61, I've got.

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And two, may I see? 62, 63?

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63, I've got.

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64? 65?

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66?

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Shake of the head, with you at 65.

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Do I see 66 anywhere?

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At £65,000, I'm done.

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At 65, then,

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first time,

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at 65, second time.

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Not got it, very close, not there. Come and see us afterwards, sir.

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Client might go a bit more.

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Unfortunately, the bidding didn't go past the reserve price,

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so it failed to sell on auction day.

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But it was bought afterwards by Julie,

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who wasn't even at the auction. Julie is a health and safety manager,

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who's been living in Australia for the last 20 years.

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Julie has several investment properties down under,

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and has returned to dip her toe in the UK market.

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I caught up with her back at the property to find out more.

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-Julie, lovely to meet you.

-And you too.

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-Congratulations.

-Thank you.

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-Tell me why you wanted to buy this place.

-Um, I basically didn't.

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-I just found it on the internet.

-Right.

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And I thought it was a pretty good buy,

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so, I rang up the auction people,

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and they said, if you meet the reserve then you can have it.

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-That's right, because you weren't at the auction, obviously.

-No.

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-Tell me what happened.

-I was actually looking at buying

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-a sandwich shop, and then...

-Sandwich shop?

-Yeah!

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But I decided that that was too much like hard work,

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so, I thought, I know property so,

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I found this on the net, just total fluke.

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-You were aware that it had gone to auction?

-No.

-You weren't aware?

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No, never heard of it before.

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And did the auctioneers tell you that it had been in the auction

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and hadn't sold?

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On the website it said that it was an unsold property.

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Did it concern you at all that it hadn't sold?

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And there might be a reason for that?

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A little bit, but there is a structural survey

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that came with it in the legal pack,

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so, I read that, and worked out that there wasn't too much to do,

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there's a bit, but nothing too scary.

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The legal pack wasn't available at the time of the auction,

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so that may have put off potential bidders.

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But, luckily, it was available for Julie. She scrutinised it,

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and found the damage was from a leaking downpipe,

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far less of a worry than subsidence.

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So, what work has she got planned here?

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There's a beam in the cellar that needs to be replaced,

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it's basically just a piece of wood, so, we need to put an RSJ in there.

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And then jack up the floors,

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and then basically, the rest of it is just a reno.

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Tell me what's involved in just jacking up the floors.

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Basically, you have to pick them all up,

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and you just jack them, so, basically putting a wedge in.

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-Right.

-And making them level again, there's no subsidence,

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it's just basically sagged.

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I haven't decided whether we're going to do it ourselves, or get...

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-What do you mean, do it yourselves?

-Yeah, we can do it.

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We being who?

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Myself and my family, because it's mostly labour,

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there's not a great deal of skill involved, it's mostly labour,

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so, I don't want to have to fork out lots of money for labour

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when we could do it ourselves.

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Lifting the floorboards isn't a job for the fainthearted,

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but Julie sounds confident that she and her family can do the work.

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No, she's not bringing them over from Australia,

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she was actually born in this country

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and still has family in the area.

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So, as well as the floors, what else will they be tackling?

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Some of the windows need replacing, a new kitchen, new bathroom,

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new walls, new plaster, doors.

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Everything. Central heating, there's no heating,

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there's actually no gas to the property,

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so I have to get the gas brought up as well.

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Julie has a plumber and an electrician on standby

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for the skilled work, and has set herself a budget of £20,000.

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-What kind of timescale?

-12 weeks.

-12 weeks?!

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-Yeah.

-With a team of how many people?

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Um, well, we've got plumbers and electricians

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and people coming in, and then there's probably about four of us.

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Julie bought this property as an investment to add to her portfolio

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of six buy-to-let properties in Australia.

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She moved there 20 years ago, and has two sons over there.

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What's the plan, have you moved away from Australia?

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No, no, my boys are still there, I've still got property out there,

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probably next July, I think I might go back.

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The plan is to do six months in Australia, six months here.

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Where's the passion for property come from?

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I really don't know, no-one else in the family has it,

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they all live in their houses and they're quite happy,

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but I just love houses, I love renovating, and being involved.

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Well, listen, congratulations, good luck with it.

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Thank you very much.

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-I look forward to seeing how you get on.

-Thank you.

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Well, Julie seems remarkably chipper and unfazed by the challenges ahead.

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But challenges there most certainly are,

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just raising the floor is not that easy,

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still, she's got her family to support her.

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How will she and the team get on? You can find out later in the show.

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I'm three miles from Cardiff city centre today

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in the suburb of Fairwater.

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The area has a good mix of affordable houses

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and benefits from plenty of local amenities,

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just a stone's throw from the Welsh capital.

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I'm here to see a two bedroomed flat,

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it's got its own allocated parking space, which is fab.

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Now, unfortunately, the outside of the block,

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well, it's looking a little bit shabby.

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But the guide price for this place was just £45,000,

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the last flat in this block sold for £60,000,

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and so, if it's in tip top condition on the inside,

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there could be some many to be made.

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The flat's on the second floor,

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although the exterior looks little worn out,

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it's nothing some paint and carpentry can't fix.

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It's worth finding out who is responsible for the maintenance,

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and whether there are service charges to pay.

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The communal entrance hall and stairwell

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could also do with freshening up.

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It's amazing how a lick of emulsion and some colour can make

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a place feel more welcoming, and talking of colour...

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Wow, look at the pink paint in this flat!

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But, the first thing that hits you between the eyes,

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it's filled to the brim with stuff that's been left here

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from the previous owners, so, before you start anything,

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get all of this lot out, so you can see what you've got here.

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You will need to do a renovation job on this,

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it's tired, it's dated, and over here, there's some damp in the corner

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which I would get looked at straightaway.

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Now, another piece of information, this flat is leasehold,

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which is perfectly acceptable, nothing untoward there at all.

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But the number of years left remaining is a problem.

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Because this will cause issues when it comes to securing finance.

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Now, unfortunately, there are only 78 years left,

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and that can put some lenders off,

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and, if the banks fail to supply the funds, you know what that means.

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# Money money, money, money. #

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Yes, it means finding the money, or you could come unstuck.

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A cash buyer could be the only way here.

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In a tricky economic climate,

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you really have to convince the lenders this is a sound investment.

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Any chink in the armour can go against you.

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But first things first, what does this flat have to offer?

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There are two adequate sized bedrooms,

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a decent sized bathroom in need of some upgrading,

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and a spacious living room with open plan kitchen.

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See past all the clutter,

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and you've got yourself a neat, little flat.

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But I'm still concerned about the short lease,

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and what it could mean for the purchaser.

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And so, here is the scenario.

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You've got the funds available to buy this for cash,

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brilliant, tick, so, no mortgage required.

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And you think to yourself,

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I want to renovate this and sell it on for a quick profit.

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Now, the short lease will make people nervous

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and it will put people off.

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So, you're forced to think about a lease renewal.

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Now, the costs will have to be negotiated between yourself

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and the freeholder, but here's the catch,

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you can't do any of that

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until you've owned the flat for at least two years.

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If you didn't know all of this prior to auction,

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well, you could really come unstuck.

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This is definitely one for those taking the long-term view

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and so renting this place out is the only way forward.

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At that guide price of 45,000, what will a local property expert think?

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We invited one along to find out.

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My personal view on the apartment at the moment, it's sad,

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and it needs freshening up, and a new lease of life.

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That's not the only lease that's required,

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how should the new owners proceed with the ticking clock

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that is the leasehold here?

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In my opinion, the new owners should, at this stage,

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consider renting for two years,

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qualifying under the Lease of Reform Act,

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applying for an extension,

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or, if the tenants also wish to purchase,

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to combine, and buy the freehold.

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Meanwhile, what can a property like this

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hope to achieve on the rental market?

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The apartment could be rented for £475 per calendar month.

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Once renovated, what could it fetch if sold on?

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In my opinion, this apartment, depending on its final finishes,

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could be placed on the market at £85,000.

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The exterior and the communal areas are very shabby,

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and, there is so much stuff in this flat to clear out, look at it.

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And I think that short lease is undoubtedly going to put people off.

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But for those taking the long-term view,

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I think this property will rent well,

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and it could be a good one to go for.

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Let's see who else thought so when it went under the hammer.

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Second floor flat in a purpose-built block of six, ladies and gentlemen.

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45, start me, bid me. 45.

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45,000 is all I'm bid.

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At 46 I'm bid, seven if you like now.

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At 46, it's your bid, at seven, thank you.

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At 47, 48, your bid at 48,000. Nine if you like now.

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Nine, thank you. 49 there, 50 there.

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51 in the back.

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At 51, two bidders, 52,000 is here.

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Three in the back, four, at 54, five, thank you.

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At 55, right behind, at 56,000 in the back, it's 57.

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Eight is coming now. 57,500, 58, was that a bid?

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50, half, 58 and a half, 59 in the back.

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At 59,000, thank you, at 59 and a half, thank you.

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60 taken in the back of the room. 60 and a half,

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61, if you like, sir, right in the back, 61, thank you.

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At 61, at 61, half if you like.

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Yes or no?

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At 61,000 in the back of the room, and we all done then at 61,000?

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It's yours, sir, standing in the striped shirt, number 48.

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With his successful bid of 61,000, the new owner is Darren.

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He owns and runs his own tiling and decorating business,

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'so, is perfectly placed to take this one on.

0:19:180:19:21

In fact, he was responsible for painting the exterior of this very block

0:19:210:19:26

some 21 years ago, when it was first built.

0:19:260:19:29

-Darren, congratulations. Lovely to meet you.

-Thank you.

0:19:310:19:34

Tell me that this flat, why did you want to buy it?

0:19:340:19:37

I had already bought in this area, so, I know the area,

0:19:370:19:39

I've got a family who live here.

0:19:390:19:41

It's a decent area.

0:19:410:19:43

Been going to auctions, believe it or not, for 10 years, now.

0:19:430:19:46

Um, first time I've actually acquired one.

0:19:460:19:49

So, hold on, you've been going for 10 years,

0:19:490:19:52

but this is the first time in 10 years you've ever bought?

0:19:520:19:54

From an auction, yes.

0:19:540:19:56

Really? Why is that?

0:19:560:19:58

I have a budget and I stick to it,

0:19:580:20:00

and sometimes you go into these auctions,

0:20:000:20:02

and I think, with me,

0:20:020:20:03

it's the one I've always wanted, everyone else has wanted.

0:20:030:20:06

And once it's gone past the threshold that I'm happy with,

0:20:060:20:10

then I just walk away.

0:20:100:20:11

Being able to walk away from buying at an auction is an excellent mindset to have.

0:20:110:20:17

If you can emotionally detach yourself from a property,

0:20:170:20:20

as Darren seems to be able to do, then you don't run the risk of overspending.

0:20:200:20:24

So, are you investing on your own?

0:20:310:20:34

No, I'm investing with my business partner and our two wives.

0:20:340:20:38

Generally I'm normally the one that does all the research.

0:20:380:20:41

My business partner is very much hands-on, he likes to come in here.

0:20:410:20:44

Once he sees this, he'll be so happy.

0:20:440:20:46

He just loves getting his hands dirty.

0:20:460:20:48

What are you going to do to really turn this place around?

0:20:480:20:50

Mainly brighten it up, generally neutralise it,

0:20:500:20:54

and allow the prospective tenants to maybe add their own little finishing touches.

0:20:540:20:59

-New kitchen, new bathroom?

-Yes.

0:20:590:21:01

And how long do you think it will take?

0:21:010:21:02

Would have been about two weeks but we are in the process

0:21:020:21:05

of doing another property at the moment so it might stretch it to the four.

0:21:050:21:08

Two to four weeks? I'm impressed.

0:21:080:21:11

And something tells me he'll have his finances sorted, too.

0:21:110:21:15

Let's talk about the budget and how much you plan on spending here.

0:21:150:21:19

We're looking to spend between 3,000 and 4,000.

0:21:190:21:22

I've got all the necessary contractors in place

0:21:220:21:25

ready to get the kitchen fitted, the bathroom done,

0:21:250:21:28

and obviously, after the decoration is done, getting the carpets down.

0:21:280:21:31

You strike me as a man with a plan

0:21:310:21:33

and I bet you're not going to go 1p over that, are you?

0:21:330:21:36

-I won't go over 4,000, definitely not, no.

-That's amazing.

0:21:360:21:40

How are you so meticulous with it?

0:21:400:21:42

Erm...

0:21:420:21:43

It's years of running my own business.

0:21:430:21:45

You have to keep your finger on the pulse

0:21:450:21:48

and make sure you don't go past that budget.

0:21:480:21:50

Otherwise it's pointless doing the work in the first place.

0:21:500:21:53

That's great. He's definitely got his business hat on,

0:22:000:22:03

which is exactly what needs to be done if it's to be a success.

0:22:030:22:07

So, with that in mind,

0:22:070:22:09

how does he plan to deal with that pesky lease issue?

0:22:090:22:12

We're keeping this place for a while.

0:22:140:22:15

It will be five to ten years so, ideally, yes, extend the lease

0:22:150:22:19

so further on down the line when I do want to come to sell it, it opens the market to more people.

0:22:190:22:24

Have you enquired as to how much money a lease will cost?

0:22:240:22:27

At the moment I would say a few thousand pounds.

0:22:270:22:30

If I leave it to when it gets under 70 years,

0:22:300:22:33

it could go up to 10,000, maybe a little bit longer.

0:22:330:22:36

It's definitely worth thinking about investing now, I think.

0:22:360:22:39

-Oh, definitely, yes.

-So what about the service charge on this property?

0:22:390:22:43

That, I haven't got clarification on what it is.

0:22:430:22:46

Solicitors at the moment - we've only just completed a couple of days ago -

0:22:460:22:50

is obviously talking to the freeholder to try and sort that out.

0:22:500:22:54

Ground rent is about £50 per year.

0:22:540:22:58

The service charge, if you look at the outside of the place, you know,

0:22:580:23:01

work has stopped being done on it for some reason or another,

0:23:010:23:06

and we're trying to resolve that.

0:23:060:23:08

You are in the perfect position to get involved here.

0:23:080:23:11

Obviously you painted this 21 years ago.

0:23:110:23:14

How do you feel about painting it all again?

0:23:140:23:16

I've got no issues doing that.

0:23:160:23:18

At the end of the day it's helping me.

0:23:180:23:21

The brighter it looks...it's all well and good having a lovely flat once it's complete,

0:23:210:23:25

but if you've got a bit of a shabby communals,

0:23:250:23:27

as people walk through externals, it might put the odd person off.

0:23:270:23:30

Darren and his partner certainly seem to have the right skills

0:23:300:23:34

to be successful in this game,

0:23:340:23:36

and with seven other buy-to-lets in the portfolio, it's just as well!

0:23:360:23:40

So you must be pretty busy.

0:23:420:23:43

The phone must ring on the occasional time?

0:23:430:23:46

The washing machine has broken, there is a leak?

0:23:460:23:48

Well we only started buying just under two years ago

0:23:480:23:51

so most things are pretty new anyway.

0:23:510:23:54

Very little issues, I have to say.

0:23:540:23:56

We've been fortunate because when we do meet, we do them up quite well.

0:23:560:24:01

I can't wait to see it when it's finished. Thank you, it's lovely to meet you today. Thanks.

0:24:010:24:06

Diligent Darren is as thrifty as they come but I like his style.

0:24:060:24:11

You know, it's the only way to make a success of property

0:24:110:24:13

and he knows that.

0:24:130:24:15

I've got no doubts he will refurbish this for £4,000,

0:24:150:24:19

but will that service charge come as a nasty surprise?

0:24:190:24:23

And there's no point having a wonderful interior

0:24:230:24:25

if the exterior lets it down and you can't get tenants through the front door.

0:24:250:24:30

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

0:24:300:24:34

Coming up, I see room for improvement in Devon.

0:24:350:24:38

It's not bad, I really like the open plan feel to it,

0:24:380:24:41

but it would be even better if there was a set of patio doors leading out there.

0:24:410:24:45

Back in Cardiff, it sounds like it's all been plain sailing.

0:24:450:24:50

Yeah, I suppose if every one was like this it would be an easy job

0:24:500:24:53

but I suppose everyone would be doing it then!

0:24:530:24:55

But first, problems under those floorboards in Cumbria.

0:24:560:24:59

The walls are solid stone, basically,

0:24:590:25:02

and that in itself causes a few more issues.

0:25:020:25:05

Now back to Cumbria,

0:25:070:25:09

where this three-bedroom property in Dalton-in-Furness sold for £72,000.

0:25:090:25:15

The new owner, Julie, spotted the house online after it failed to sell at the auction.

0:25:150:25:21

She'd been living in Australia for the past 20 years

0:25:210:25:24

and has developed several properties down under.

0:25:240:25:27

She was confident she had what it took to give this place the lift it needed - literally.

0:25:270:25:32

Tell me what's involved in just jacking up the floors.

0:25:320:25:35

Basically you have to pick them all up and then you just jack them

0:25:360:25:41

so you're basically putting a wedge in.

0:25:410:25:44

-Right.

-And making the floors level again.

0:25:440:25:46

There's no subsidence, it's just basically sagged.

0:25:460:25:50

I haven't decided whether we're going to do it ourselves...

0:25:500:25:54

-What do you mean do it yourselves?

-Yeah, we can do it.

-"We" being who?

0:25:540:25:58

Myself and my family.

0:25:580:26:00

Five months on and how have Julie and her family done?

0:26:000:26:03

Well, I'm pleased to say it's not just the outside that's had a new paint job.

0:26:050:26:10

The downstairs living space is completely transformed

0:26:100:26:13

into a bright and modern living space.

0:26:130:26:17

Upstairs, Julie has re-plastered, re-carpeted,

0:26:170:26:20

and redecorated throughout the house, but it's not all just been cosmetic.

0:26:200:26:25

The bathroom has been cleverly rejigged to accommodate a modern suite, including a brand-new shower.

0:26:250:26:31

But the most dramatic change is in the kitchen.

0:26:320:26:36

The kitchen and bathroom are my favourite rooms.

0:26:360:26:38

They really do look modern now. They have really transformed the place.

0:26:380:26:43

The bathroom, we actually took a window out of the bathroom

0:26:430:26:46

to make room for a shower so we've got a nice four-piece suite in there now

0:26:460:26:50

and a Velux window in the roof,

0:26:500:26:53

which brings in heaps of light but it actually looks really good up there.

0:26:530:26:58

And then the kitchen, I like my kitchens.

0:26:580:27:00

So hopefully it'll be practical and good.

0:27:000:27:05

And Julie has been busy up at the top of the house, too.

0:27:050:27:08

Remember that old attic? Now it's a safer, cleaner space.

0:27:080:27:12

Perfect for storage or even a little office, perhaps.

0:27:120:27:16

We just had to put a banister around where the stairs are

0:27:160:27:20

because that was just a hole so we've done that just to make that safe.

0:27:200:27:25

We've carpeted, we've done some plastering up there,

0:27:250:27:28

and central heating because it was freezing.

0:27:280:27:30

Julie and her family of helpers did a lot of the renovation themselves,

0:27:300:27:34

but had to get tradesmen in for the trickier plumbing and electrics.

0:27:340:27:38

And it turned out she didn't want to tackle those wobbly floors either,

0:27:380:27:42

leaving that for the pros.

0:27:420:27:43

Phew! I bet that saved her a lot of bother.

0:27:430:27:46

It was quite difficult. The walls are solid stone, basically,

0:27:550:28:01

and that in itself causes a few more issues.

0:28:010:28:03

It's not quite as simple as a brick structure

0:28:030:28:06

so we really did need to get some professional people in to do that,

0:28:060:28:10

and they did. And it caused them a few headaches, too!

0:28:100:28:14

It's generally best to get professionals in when it comes to tough jobs.

0:28:140:28:18

I think Julie was right not to deal with jacking up the house herself,

0:28:180:28:22

but as well as the work inside she also tackled the garage outside.

0:28:220:28:26

Even though it was advertised as a garage,

0:28:260:28:29

you couldn't actually get a car in there

0:28:290:28:32

because you couldn't get the doors open so we've raised the roof.

0:28:320:28:34

We've actually put a new fibreglass roof on there

0:28:340:28:38

so now you've got a really good-sized garage and good access.

0:28:380:28:41

The finishing touches still need to be done,

0:28:410:28:43

but, once completed, the garage should add real value.

0:28:430:28:47

Off-street parking is a huge bonus for potential purchasers or tenants.

0:28:470:28:51

But how has Julie's budget fared on this project?

0:28:510:28:55

The original budget was 20,000, and now at about 23,000,

0:28:560:29:01

maybe 23,500. I'm quite happy with that,

0:29:010:29:05

basically because we didn't intend to paint the elevations

0:29:050:29:09

and we didn't intend to remodel the garage, and that's where most of the money has gone

0:29:090:29:13

so really it wasn't too bad an estimate.

0:29:130:29:17

But has the work she's done added value to the house?

0:29:170:29:20

We asked two local property experts for their thoughts.

0:29:200:29:24

But, in typical British fashion, by the time they arrived just a few hours later,

0:29:240:29:28

the weather had taken a turn for the worse.

0:29:280:29:30

I think the buyer has made a tremendous job of it.

0:29:410:29:45

It needed a full programme of modernisation.

0:29:450:29:48

She's done it well and she's done the essential works very well.

0:29:480:29:52

She's levelled all the floors, re-rendered the outside.

0:29:520:29:55

It looks really well.

0:29:550:29:56

I like the property. I think it's got nice decoration.

0:29:560:30:00

I like the bathroom. I think the bathroom has been done nicely

0:30:000:30:04

and made good use of the space in there as well.

0:30:040:30:06

I like the way she's minimalised most of the rooms.

0:30:060:30:10

Nice kitchen, nice bathroom.

0:30:100:30:13

Cosmetics are really good, carpeted throughout.

0:30:130:30:16

A really good job, I think.

0:30:160:30:18

There's a very high demand for this type of property

0:30:180:30:21

in the area at the moment for the rental and on a re-sale.

0:30:210:30:24

Julie paid £72,000 for the house

0:30:250:30:28

and has spent a further 23,500 on the renovation,

0:30:280:30:31

making her total outlay around 95,500.

0:30:310:30:35

So, what do the experts think this place would be worth if sold on?

0:30:350:30:39

I think if this property was exposed to the sales market,

0:30:390:30:43

it would probably achieve a figure probably between £120,000-125,000.

0:30:430:30:50

The property, I would put for sale at £125,000.

0:30:500:30:55

That's basically what I thought it would be, yeah,

0:30:550:30:58

so I'm quite pleased with that.

0:30:580:31:00

With those figures, Julie could generate a pre-tax profit

0:31:000:31:03

of between £24,500 and £29,500 before the usual fees and expenses.

0:31:030:31:10

What if it was rented out?

0:31:100:31:13

I think if this property was exposed to the rental market,

0:31:130:31:16

I think you would expect to achieve about £550 per calendar month.

0:31:160:31:22

The property could achieve in the current market £550 per calendar month.

0:31:220:31:27

I don't really know what the rental values are,

0:31:270:31:29

but that would be fine as well if you were renting, I would imagine.

0:31:290:31:33

Are those rental figures enough to convince Julie to rent the property out instead?

0:31:330:31:38

I'm still going to sell the property.

0:31:390:31:41

I'm going to put it on the market basically tomorrow

0:31:410:31:45

and, because it's coming up to Christmas, will probably take

0:31:450:31:48

a bit of time and then see what happens from there.

0:31:480:31:50

What are Julie's future plans?

0:31:580:32:01

I'm actually going to go back to Australia in July.

0:32:010:32:05

We're going to stay out there for probably about six months

0:32:050:32:08

and then we're going to come back and try and find another house.

0:32:080:32:11

Have to ask the family first, though.

0:32:110:32:12

I don't know if they're quite as keen.

0:32:120:32:14

# I can think of nothing better

0:32:170:32:20

# Than dancing on the beach

0:32:200:32:22

# See a girl, you can go and get her

0:32:220:32:25

# Your troubles will be out of reach

0:32:250:32:27

# On the beach... #

0:32:270:32:30

I'm on the north Devon coast,

0:32:300:32:32

perhaps the less well-known part of the county,

0:32:320:32:34

due to the popularity of the south coast.

0:32:340:32:37

Barnstaple is the main town of this district,

0:32:370:32:40

and claims to be the oldest borough in the United Kingdom.

0:32:400:32:44

Well, most people buying a property in the southwest

0:32:440:32:46

would probably like something by the beach

0:32:460:32:49

or maybe overlooking the sea,

0:32:490:32:51

but the price of those could be a bit of a limiting factor.

0:32:510:32:55

Come inland, though, and I think you get a lot more value for your money.

0:32:550:32:59

For instance, this -

0:32:590:33:00

it's a three-bed mid terrace at a guide price of £95,000,

0:33:000:33:04

and yet you're only 10 minutes away from some beautiful beaches.

0:33:040:33:07

So, let's take a look.

0:33:070:33:09

That's a pretty generous guide price

0:33:110:33:13

for what is a three bedroom house in a lovely little area.

0:33:130:33:16

From the outside, the property appears to be in good order.

0:33:160:33:19

So, a promising start.

0:33:190:33:22

Nice, bright entrance hall,

0:33:220:33:24

partly due to this double glazed unit at the end here

0:33:240:33:27

with the door in the middle of it.

0:33:270:33:28

Lots of light coming in here, so we really like that.

0:33:280:33:31

Stairs up to your bedrooms there and then through into your living room.

0:33:310:33:34

Again, same thing -

0:33:340:33:36

lots of light pouring in from that rather odd thing at the end there,

0:33:360:33:41

like a double glazed unit which has had the bottom bit blocked off.

0:33:410:33:44

Obviously at some point in the past, thought,

0:33:440:33:46

somebody's knocked these two rooms into one,

0:33:460:33:49

so you've got your living room there and the dining room here.

0:33:490:33:52

It's not bad. I really like the open-plan feel to it,

0:33:520:33:54

but it would be even better if there was a set of patio doors

0:33:540:33:57

leading out there onto the garden.

0:33:570:33:59

Or, another thought occurs to me -

0:33:590:34:02

an old serving hatch here, therefore,

0:34:020:34:05

through here, the kitchen.

0:34:050:34:08

Not a bad size at all, but how about taking out this whole wall,

0:34:090:34:14

maybe putting a breakfast bar area in

0:34:140:34:16

to create a really nice sort of kitchen-living area,

0:34:160:34:18

possibly block off that wall there.

0:34:180:34:21

But internal layout, you can play with,

0:34:210:34:24

and it's a nice canvas to work with.

0:34:240:34:27

It does look like a blank canvas to me,

0:34:270:34:30

ready to paint your own picture of how you'd like to live.

0:34:300:34:33

Certainly, French doors out of the dining room

0:34:330:34:35

would make the world of difference on a summer's day.

0:34:350:34:39

Upstairs, the smallest bedroom probably only has room

0:34:400:34:43

to squeeze in a single bed, but the other two,

0:34:430:34:47

and particularly the one at the front, are good sizes.

0:34:470:34:50

And the bathroom is actually in pretty good nick.

0:34:500:34:53

So, there's a bit of work needed to update this house,

0:34:540:34:57

but whoever does it will need to watch

0:34:570:34:59

they don't spend more than the house could sell for.

0:34:590:35:02

I happen to know that there's three other properties on this estate

0:35:020:35:06

for sale at the moment, ranging from 140 to £152,000.

0:35:060:35:09

That is what you should set your sights on

0:35:090:35:11

as being the value of this property. Any buyer - bear that in mind.

0:35:110:35:16

Even if super-duper and snazzy, with gold taps and bespoke fittings,

0:35:160:35:21

you're unlikely to get more than £152,000 for this place.

0:35:210:35:26

The sky's definitely not the limit,

0:35:260:35:28

and you are somewhat constrained by the neighbouring properties.

0:35:280:35:32

Still, I think there is money to be made here,

0:35:320:35:35

if you don't get carried away.

0:35:350:35:37

We asked along a local property expert to hear his opinion

0:35:370:35:40

on this North Devon terrace, which had a guide price of £95,000.

0:35:400:35:45

First impressions are, it's not too bad.

0:35:460:35:48

It's a light refreshment project, I would say.

0:35:480:35:51

You're going to consider putting a new bathroom, new kitchen,

0:35:510:35:53

and just general decoration.

0:35:530:35:55

Personally, I think you're going to spend approximately £10,000,

0:35:550:35:58

cos the property has the main mod cons inserted,

0:35:580:36:02

which is obviously double glazing and gas central heating.

0:36:020:36:05

How much could the property be worth?

0:36:050:36:07

I think as we see it today, the property could be worth

0:36:070:36:10

somewhere in the region of £100-110,000.

0:36:100:36:13

Once refurbished, that could push that figure up closer to £140,000.

0:36:130:36:17

How much could it rent out for?

0:36:190:36:21

These sort of three bedroom properties in the area rent extremely well,

0:36:220:36:25

and somewhere in the region of £650 per calendar month

0:36:250:36:29

wouldn't be unreasonable.

0:36:290:36:30

Well, this really isn't a property for a developer

0:36:300:36:34

looking to throw caution to the wind and take a real chance.

0:36:340:36:37

This is more for somebody looking for a bit more of a safe bet

0:36:370:36:41

and happy to accept decent rather than rich returns.

0:36:410:36:45

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

0:36:450:36:48

Good renter, good first home.

0:36:480:36:50

Who's going to say 100 to us? Nice and simple.

0:36:500:36:53

100. 100 we've got.

0:36:530:36:55

At 100. 101. 101.

0:36:550:36:58

This was a well-attended auction,

0:36:580:37:00

with a lot of interest in this property.

0:37:000:37:02

We rejoin the bidding as it reaches £125,000 -

0:37:020:37:06

£30,000 over the guide price.

0:37:060:37:09

125. Good pitch.

0:37:110:37:12

125. Half, he says. 125 and a half.

0:37:120:37:15

126. 126.

0:37:150:37:18

126 and a half. 126 and a half.

0:37:180:37:21

126 and a half. 127.

0:37:210:37:24

127.

0:37:240:37:25

At 1...yeah.

0:37:250:37:26

127 and a half. 127 and a half.

0:37:260:37:29

128. 128. Tape goes around.

0:37:290:37:32

128 and a half. 128 and a half.

0:37:320:37:34

At 128...9.

0:37:340:37:36

At 129. Once is sat.

0:37:360:37:39

Twice is sat. At 129, last chance for a half.

0:37:390:37:43

Here we go. At 129, and out.

0:37:430:37:46

Sir, yours.

0:37:460:37:47

Congratulations, well done. 129.

0:37:470:37:49

And your buyer's number, sir, is, please?

0:37:490:37:52

With that successful bid of £129,000,

0:37:520:37:55

£34,000 over the guide price, was Ken.

0:37:550:37:58

He's a retired painter and decorator

0:37:580:38:01

who's also been developing property in the area for almost 30 years.

0:38:010:38:05

I met up with him back at the house.

0:38:050:38:08

-Ken, great to meet you. Congratulations.

-Thank you very much.

0:38:080:38:11

Tell me why you wanted to buy this place.

0:38:110:38:13

Well, really, because it is a good letting area

0:38:130:38:19

and that is what we do. We do let properties,

0:38:190:38:22

and having known the area for some time

0:38:220:38:26

because the first property we bought was just up the road,

0:38:260:38:29

so it's worked out quite well,

0:38:290:38:31

and if you know a lot more than other people,

0:38:310:38:34

-then it comes in handy sometimes, doesn't it?

-Right.

0:38:340:38:38

So when did you start with your first property?

0:38:380:38:41

-1983.

-Wow!

0:38:410:38:43

-Yeah.

-Gosh.

0:38:430:38:45

1983, so, many years ago.

0:38:450:38:47

-Getting on for 30 years, almost.

-Yeah, nearly 30 years.

0:38:470:38:50

Continuous letting, that is, as well.

0:38:500:38:52

With all that experience behind him, is there anything we can learn

0:39:000:39:03

about property developing? Maybe Ken can tell us.

0:39:030:39:06

Well, you've got to be very careful,

0:39:070:39:09

for a start, especially with property,

0:39:090:39:11

because you're not talking about

0:39:110:39:13

a few hundred pounds these days, are you?

0:39:130:39:15

So, do your homework, as we did with this one

0:39:150:39:19

and every property we look at,

0:39:190:39:20

and if you know the area, great advantage.

0:39:200:39:24

But, like I say, there is pitfalls,

0:39:240:39:26

and you've got to look out for all the things behind

0:39:260:39:30

that is not displayed to you. That is the big secret.

0:39:300:39:34

Ken should smile about this property,

0:39:420:39:44

as there don't seem to be any secrets lurking here.

0:39:440:39:48

It's a simple job for a man who's been doing this for nearly 30 years.

0:39:480:39:52

So what's he planning for this place?

0:39:520:39:55

Right. What we're going to do is total redec and refit.

0:39:550:40:02

Looks like the kitchen and the bathroom, carpets...

0:40:020:40:06

total, really. Well, I say, it has got central heating,

0:40:060:40:10

gas central heating,

0:40:100:40:12

and PVC windows, so that's a bonus.

0:40:120:40:15

Which...but as you can...

0:40:150:40:18

when you look around the detail, you can see the coving

0:40:180:40:21

and the skirting aren't quite up to scratch,

0:40:210:40:23

not for what we would like.

0:40:230:40:26

So what's the budget for the work?

0:40:260:40:28

I reckon between two and three thousand.

0:40:280:40:32

-Two and three?

-Mmm.

0:40:320:40:33

-You're doing the kitchen and the bathroom as well?

-Yeah.

0:40:330:40:37

How are you going to do that for two to three thousand?

0:40:370:40:39

-I'll let you know later.

-What do you mean, later?

0:40:390:40:42

No, you can do it.

0:40:420:40:45

It's not a problem. I've done kitchens and bathrooms before,

0:40:450:40:49

refitted them. Not a problem.

0:40:490:40:51

So the whole redecoration and the kitchen

0:40:510:40:53

and the bathroom and new carpets...

0:40:530:40:56

-Yeah.

-..for two to three thousand?

0:40:560:40:58

-Yeah.

-I want to know your secrets, mate!

-Well, like I say...

0:40:580:41:02

I mean, the thing is, it's all experience, isn't it?

0:41:020:41:05

If you've done it a number of times,

0:41:050:41:06

you know what to get and where to get and what to pay.

0:41:060:41:11

And what about...have you got your own team of people?

0:41:110:41:14

-So you're not paying the bills?

-No, I do it...most of it myself.

0:41:140:41:17

My wife has input as well, as they do,

0:41:170:41:20

so it all adds to...

0:41:200:41:22

at the end of the day, it all adds to a nice job done.

0:41:220:41:26

Job done indeed.

0:41:260:41:28

Ken hasn't lost any of his enthusiasm,

0:41:280:41:31

and is majorly involved in all parts of the work.

0:41:310:41:33

That may be the reason he can keep his budgets so low.

0:41:330:41:38

But 30 years on, some people may have thought, you know,

0:41:380:41:40

"Let's take a bit more of a back seat.

0:41:400:41:43

"Let's just be the landlord, let's do that stuff,"

0:41:430:41:46

not actually getting your hands dirty out there.

0:41:460:41:49

Well, yeah, you're right. People do say that,

0:41:490:41:51

but that's the people who doesn't like so much what they're doing.

0:41:510:41:54

I love what I'm doing, so it's not as much a job to me,

0:41:540:41:58

because I do it all the time because I like it.

0:41:580:42:02

So what's the problem?

0:42:020:42:04

You keep doing what you like, don't you, these days?

0:42:040:42:06

Well, listen, congratulations. Good luck with it.

0:42:060:42:09

-Thank you very much.

-We look forward to seeing how you get on.

0:42:090:42:11

Yeah, will do. Thank you.

0:42:110:42:12

Hmmm.

0:42:120:42:14

Well, stick to what you know and what you like.

0:42:140:42:17

There's certainly a lot of sense in that.

0:42:170:42:20

And this is a really solid little property

0:42:200:42:22

for Ken to add to his portfolio.

0:42:220:42:24

But two to three thousand quid to do the bathroom,

0:42:240:42:28

the kitchen and a full decoration and carpets?

0:42:280:42:31

Phew! I can't wait to see if he manages that.

0:42:310:42:34

You can find out later in the show.

0:42:340:42:36

Well, if you want to profit from property, timing is crucial,

0:42:390:42:42

but you have to be flexible with your plans.

0:42:420:42:45

That's right. Don't let time pass you by.

0:42:450:42:47

Let's see how today's buyers got on.

0:42:470:42:50

Now we're back in Cardiff, with this second floor,

0:42:500:42:54

two bedroom flat which sold at auction for 61,000.

0:42:540:42:57

I met up with Darren, who,

0:42:570:42:58

along with his business partner and their wives,

0:42:580:43:01

has built up a rental portfolio,

0:43:010:43:02

including seven other properties, over the last few years.

0:43:020:43:06

So you must be pretty busy.

0:43:080:43:10

The phone must ring on the occasional time,

0:43:100:43:12

the washing machine's broken, there's a leak?

0:43:120:43:15

Well, we only started buying just under two years ago,

0:43:150:43:17

so most things are pretty new, anyway.

0:43:170:43:20

Very little issues, I have to say.

0:43:210:43:23

We've been fortunate, because we when we do them,

0:43:230:43:26

we do them up quite well.

0:43:260:43:29

So, did they manage to get this flat up to standard?

0:43:290:43:32

We're back six weeks later to see the result.

0:43:320:43:35

Darren's done a great job here.

0:43:410:43:43

He has part-furnished the flat,

0:43:430:43:45

with the tenant opting to bring their own single beds,

0:43:450:43:47

which leaves a bit more space in the rooms.

0:43:470:43:50

In this room, we took out the existing kitchen,

0:44:050:44:08

replaced it with this new one.

0:44:080:44:10

We reconfigured it slightly.

0:44:100:44:12

We've obviously painted it up, new tiles on the wall,

0:44:120:44:16

also took up the existing vinyl floor

0:44:160:44:18

and put new tiles down there.

0:44:180:44:20

We were fortunate with regards the tiles.

0:44:200:44:22

They'd been in my garage for a couple of years

0:44:220:44:24

from a job we did some time ago,

0:44:240:44:27

so if we can find stuff to help us out

0:44:270:44:30

to save on costs, that's what we do.

0:44:300:44:33

Obviously, it's brightened it up and I'm pleased with it.

0:44:330:44:36

Throughout, the property has been completely modernised,

0:44:360:44:40

with upgraded electrics,

0:44:400:44:42

new flooring and a neutral colour scheme.

0:44:420:44:45

All that clutter is long gone,

0:44:450:44:47

and now it's a comfortable and fresh living space.

0:44:470:44:51

Well, in this room, the only problem we had was damp

0:44:510:44:54

that was coming through this corner here.

0:44:540:44:56

We found out that it was historical,

0:44:560:44:58

and all we had to really do was to seal it up,

0:44:580:45:01

retape it and paint it.

0:45:010:45:03

The rest of the room, obviously, is painted throughout

0:45:030:45:06

in this neutral colour.

0:45:060:45:08

New carpets put down, new curtains, and the tenant's moved in

0:45:080:45:12

and he's happy and we're happy.

0:45:120:45:15

Well, that is great - a tenant already found.

0:45:150:45:18

But has it been as simple a renovation as Darren hoped?

0:45:180:45:22

Pretty much straightforward.

0:45:250:45:27

You know, in lots of places we've had to do full refurbs.

0:45:270:45:31

This one, really, to all intents and purposes, was a bit of a clean up,

0:45:310:45:34

you know, with the exception of the kitchen and bathroom.

0:45:340:45:37

I suppose if every one was like this it would be an easy job.

0:45:370:45:41

But I suppose everyone would be doing it then!

0:45:410:45:43

Too true. They're certainly not all as plain sailing

0:45:430:45:46

as this one seems to have been.

0:45:460:45:49

However, there is one issue

0:45:490:45:51

that Darren seems to have been unable to remedy -

0:45:510:45:54

that's the exterior and communal parts of the building,

0:45:540:45:58

which are a bit tired and shabby. When we were last here,

0:45:580:46:00

Darren was trying to track down the freeholder to sort out the service charge

0:46:000:46:04

in order to give these areas some much-needed TLC.

0:46:040:46:09

So, is that in the pipeline any time soon?

0:46:090:46:12

We received a letter from the freeholder, eventually.

0:46:140:46:17

So things will start moving from there on in.

0:46:170:46:20

I've spoken to a number of people in this block

0:46:200:46:24

who are very keen to get the place updated and looking at its best.

0:46:240:46:29

So there's light at the end of the tunnel with regards that one

0:46:290:46:32

cos we've finally got hold of the freeholder. Hopefully we'll get things moving.

0:46:320:46:36

Fingers crossed that that gets sorted soon

0:46:360:46:38

because it certainly doesn't seem to be in Darren's nature to dilly-dally.

0:46:380:46:42

He managed to renovate the property within his two to four week estimate.

0:46:440:46:48

But how did he do on his budget?

0:46:490:46:52

Darren had set aside £3,000-£4,000 and not a penny more,

0:46:520:46:56

so did he stick to his guns?

0:46:560:46:58

I worked it all out the other day. It was £47 above the 3,000 mark,

0:47:000:47:04

so at the bottom end.

0:47:040:47:06

That certainly seems like a job well done.

0:47:060:47:10

Darren and his partner spent 61,000 on this property at auction,

0:47:100:47:13

a further £1,000 on fees,

0:47:130:47:16

and an additional £3,047 on the refurbishment,

0:47:160:47:21

making a grand total of just over £65,000.

0:47:210:47:24

So, was this money well spent?

0:47:240:47:26

We asked two local property experts for their opinions.

0:47:260:47:31

What I particularly like about the apartment is the lightness.

0:47:330:47:37

We're on the second floor, which technically is the penthouse,

0:47:370:47:40

so in real terms, we've got a lot of light coming through.

0:47:400:47:43

The colours schemes used are all magnolias, light colours, pastels,

0:47:430:47:47

coupled with the contemporary kitchen and bathroom fitments which have been put in,

0:47:470:47:50

so it's very stylish and it's going to appeal to the young element.

0:47:500:47:54

Really nice, yeah. It's very well-presented, neutrally-decorated.

0:47:540:47:57

A lovely kitchen, a really nice bathroom, so a very nice property.

0:47:570:48:02

So, it all sounds very positive.

0:48:020:48:05

How much could it fetch on the rental market?

0:48:050:48:09

In my opinion, the rental figure that could be achieved

0:48:090:48:12

is £475 per calendar month.

0:48:120:48:15

I would put the property on the market

0:48:150:48:17

for around £450 per calendar month.

0:48:170:48:21

We have got more than that with the tenant we have in.

0:48:210:48:25

We're actually getting 500 a month, which I think it's worth.

0:48:250:48:29

500 a month will mean a healthy yield

0:48:290:48:33

of just over 9%. But if Darren and his partners choose to sell on,

0:48:330:48:38

even with its relatively short lease, how much could they achieve?

0:48:380:48:41

Remember, they spent just over 65,000 here.

0:48:410:48:44

If this property was for sale,

0:48:440:48:47

we would value it between £85,000-£95,000.

0:48:470:48:50

The value of this apartment in its present condition in today's market

0:48:500:48:54

is between £85,000-£95,000.

0:48:540:48:58

No major surprises there,

0:48:580:49:00

but I'm basically in this just to rent out,

0:49:000:49:05

for at least five years, and see how things go when the house market recovers.

0:49:050:49:09

With this project going so smoothly,

0:49:090:49:12

does he have any advice for would-be property developers?

0:49:120:49:17

Well, if I'm doing it, I don't think it's that difficult.

0:49:170:49:21

I think it's a little bit of knowledge,

0:49:210:49:24

knowing the right people.

0:49:240:49:26

Hopefully you're prepared to get your hands dirty a bit yourself

0:49:260:49:29

to keep down on costs.

0:49:290:49:31

So, I would encourage anyone who feels like it's something for them

0:49:310:49:36

to give it a try. If you don't try things, you never know.

0:49:360:49:39

Time to go back to Devon,

0:49:410:49:43

where this three-bedroom house in Barnstaple

0:49:430:49:47

sold at auction for £129,000.

0:49:470:49:51

Ken was the buyer. He's retired now,

0:49:510:49:53

but manages a substantial portfolio of properties.

0:49:530:49:57

His experience as a landlord gave him confidence

0:49:570:50:00

when it came to his budget for the renovation.

0:50:000:50:03

I reckon between 2,000-3,000.

0:50:050:50:08

-Two and three?

-Mm.

0:50:080:50:09

-Are you doing the kitchen and the bathroom as well?

-Yeah.

0:50:090:50:13

How are you going to do that for £2,000-£3,000?!

0:50:130:50:15

-I'll let you know later.

-What do you mean "later"?!

0:50:150:50:18

Five months later, to be precise,

0:50:180:50:22

we caught up with Ken to see how much bang he got for his buck.

0:50:220:50:26

And he's done a great job.

0:50:320:50:35

It's modern, simple and effective.

0:50:350:50:37

As you can see, we've got a new hob, a new cooker...

0:50:420:50:46

Really, everything in this kitchen has been renewed.

0:50:460:50:49

So, really, this kitchen is accessible,

0:50:490:50:51

through all areas, for whatever you want within the kitchen.

0:50:510:50:56

So everything seems to be up and hopefully working fine!

0:50:560:51:01

It has been tested, so everything's fine.

0:51:010:51:04

Throughout the house, everything has been freshened up, repainted,

0:51:090:51:13

re-floored, and made to look spic and span.

0:51:130:51:15

The bathroom has been modernised as well.

0:51:210:51:24

He's done a really neat renovation here, but as I suspected,

0:51:280:51:32

he hasn't been able to stick to that ambitiously low budget of 2,000-3,000.

0:51:320:51:37

I think we've gone to about 4,500 now.

0:51:370:51:40

It was only finished a few days ago,

0:51:400:51:44

so there are a few more invoices to come in.

0:51:440:51:47

But I mean, with that money spent on this property,

0:51:470:51:50

for what it was bought for, I think it's quite a good deal, yeah.

0:51:500:51:54

So, with the last few things to pay for,

0:51:540:51:57

that's going to be almost twice the estimated budget of 2,000-3,000.

0:51:570:52:01

But in the grand scheme of things, it's not a huge amount

0:52:100:52:12

for a total renovation of a property.

0:52:120:52:15

However, it hasn't all been plain sailing.

0:52:150:52:17

The walls took most of the time

0:52:190:52:21

to do on this property because they were in such a state, you know.

0:52:210:52:25

As soon as you put a coat of paint on the walls

0:52:250:52:28

you could see the condition of the walls,

0:52:280:52:31

so we had to keep skimming it up and recoating the walls.

0:52:310:52:34

I say "we", I mean "me"!

0:52:340:52:37

It wasn't only the walls that were in poor condition.

0:52:430:52:47

Remember that garden? Well, now Ken's cleaned that up nicely, too.

0:52:470:52:51

And on top of all this work, some of the extra money

0:52:510:52:55

he had to spend went on fully rewiring the house.

0:52:550:52:58

We did have to upgrade the electrics to today's standards,

0:53:040:53:10

which, where I'm standing now,

0:53:100:53:13

the floors had to be dug up to lay larger earth cables.

0:53:130:53:17

So it's up to today's standards and certificated.

0:53:170:53:21

He originally planned to do the work in six to eight weeks,

0:53:210:53:24

but it's taken nearer five months

0:53:240:53:27

because of all that extra work he's done,

0:53:270:53:29

and he did most of that himself.

0:53:290:53:32

So, what are his plans for the property now?

0:53:320:53:35

Originally, we were going to let the property,

0:53:360:53:41

but now, it's come up so well

0:53:410:53:46

that I think, possibly, maybe a resale,

0:53:460:53:49

but we've not 100% made a decision yet,

0:53:490:53:53

so we will be thinking about that within the next week or two,

0:53:530:53:57

making a decision whether it's going to be rental or for sale.

0:53:570:54:01

Ken's already had his own valuation done,

0:54:030:54:05

but will two other local experts

0:54:050:54:07

be able to give him an idea of the house's current market value?

0:54:070:54:12

First of all, let's hear their thoughts on the work.

0:54:120:54:16

First impressions? I have to say that the gentleman

0:54:160:54:20

has done an excellent job. The finish is to a very good standard.

0:54:200:54:24

It looks really well-presented.

0:54:240:54:26

He's obviously done quite a lot of work throughout

0:54:260:54:29

and it looks like he's done a really good job.

0:54:290:54:31

The bathroom has been finished to an excellent standard -

0:54:310:54:34

it's what people are looking for -

0:54:340:54:36

a standard three-piece white suite, a shower over the bath,

0:54:360:54:40

tiling... An excellent standard.

0:54:400:54:42

The kitchen's been done really well.

0:54:420:54:44

It's clean and tidy, nice and modern.

0:54:440:54:47

Appliances are in there, which is always a bonus.

0:54:470:54:50

What about those valuations, then?

0:54:500:54:53

Firstly, the rental figures.

0:54:530:54:55

For rental, the market is very strong at the moment,

0:54:550:54:59

so for a house like this, we'd probably be looking to get around £600 per calendar month.

0:54:590:55:04

If we were going to place the property on the market for rental,

0:55:040:55:07

I would suggest a figure of 595 per calendar month.

0:55:070:55:11

Too low.

0:55:110:55:14

Yeah. I've already had rental values above that,

0:55:140:55:17

before I even bought the property, so I think they're a bit low.

0:55:170:55:21

Maybe the resale valuations will be more in line with what he had in mind.

0:55:210:55:26

Remember, Ken bought the property for 129,000

0:55:260:55:30

and has done around £4,500 worth of work.

0:55:300:55:34

So to make a profit, these valuations need to be more

0:55:340:55:37

than his total spend of £133,500.

0:55:370:55:42

If we were going to place the property on the market for sale,

0:55:420:55:44

I would do so at a figure of £150,000.

0:55:440:55:47

If the house went up for sale at the moment,

0:55:470:55:50

I would think it would probably be in the region of 150,000,

0:55:500:55:54

possibly looking to come down slightly on that.

0:55:540:55:58

Both the values that you've just spoken about

0:55:580:56:02

are below the valuations that we've previously had.

0:56:020:56:06

So I wouldn't be happy with those valuations, no.

0:56:060:56:10

In fact, Ken has since put the house on the market

0:56:100:56:13

and very quickly received an offer of £162,500.

0:56:130:56:18

But he decided not to accept that as he thinks he can achieve more

0:56:180:56:22

if he holds out a bit longer.

0:56:220:56:24

So he could be looking at a pre-tax profit of over £30,000,

0:56:240:56:29

which is a very healthy return.

0:56:290:56:31

Meanwhile, it sounds like he's having too much fun

0:56:310:56:34

to put his feet up and enjoy his retirement.

0:56:340:56:37

Never. I wouldn't do it if I didn't love it.

0:56:420:56:44

A lot of people do jobs that they don't like, but that's not me.

0:56:440:56:48

I always do, you know...

0:56:480:56:51

If I didn't like it, I wouldn't be here doing what I've done.

0:56:510:56:53

There'll be more compelling stories for you next time.

0:56:560:56:59

-So make sure you join us then for more Homes Under The Hammer.

-Goodbye.

-Goodbye.

0:56:590:57:02

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