Episode 80 Homes Under the Hammer

Hello, Lucy I have witnessed

the ups and the downs of the property market.

Whether you're looking for a property as an investment or

a home, you want to see its value rise, not fall.

Yes, so it's important you do your research,

and maybe grab yourself a bargain by visiting the auctions.

Well, we've all read about the ever-changing property market,

and the delays when some properties are sold.

But buying at auction is one of the simplest processes.

Your hand goes up, the hammer goes down, and you've bought it.

And that's what happened to the three properties on today's show.

In Cumbria, I find a beach bungalow that makes me

want to wax rather lyrical.

A rural, tranquil retreat overlooking the Irish Sea.

I explore this Surrey property's potential from every angle.

How do you add space to a property without extending it?

And the garden of this house in Stoke-on-Trent may just be

the place for a footie fan.

Absolutely huge, and big enough for a football pitch?

Well, perhaps, a small one.

All these properties have been sold at auction, and we'll find out

who bought them and what they paid for them

when they went under the hammer.

It's yours. Well done.

We are so lucky in the British Isles that we have so much coastline

and beautiful beaches such as this one,

South Braystones in Cumbria, between Whitehaven and Sellafield.

It really is a lovely spot.

A rural and tranquil retreat overlooking the Irish Sea.

Those stunning stretches of beach really do give you

a wonderful sense of calm and quiet.

There are a couple of caravan sites and some unique

and very individual dwellings along the beachfront.

Some of them were originally built for the navvies

who built the railway.

The nearest village is a few miles away,

so you don't have any local amenities on your doorstep.

There is a railway station here, so you're not completely cut off,

but it really does feel like a hideaway, well off the beaten track.

And what a fantastic place to sit and watch the sun go down.

A house on the beach.

I mean, literally, a stone's throw from the beach.

This is it.

Yes, guided at £30,000 plus,

you too could have your very own beach shack.

# When you're through swimming

# I'll dry your back

# Come and relax, girl in my little beach shack

# What are you saying now... #

Expectations weren't very high, um, and...

Well, you know what,

it's got lots of character, I'll say that for it.

A big, central room here, lovely to see the little stove.

That is a delight, actually.

Views out that way, roaring fire that way,

doesn't get much better.

You've got a little bedroom there, bathroom there,

a second bedroom here.

It's got that feeling of homemade about it with the wooden floors

and everything. A few issues here and there.

The kitchen, it fits in perfectly.

It's never going to be a show home, is it?

But what it is is extraordinarily characterful and,

believe it or not, I love it.

Yes, if you look at this less as a full-time home and more of

a weekend retreat, then you realise what a great place it could be.

The stove in the kitchen is not only used for cooking,

but also heats the house.

Electricity is provided by a generator in the garage,

and there's mains water and a septic tank.

The previous occupier is still in the process of moving out,

but you can see how it could be a lovely home from home.

So, we absolutely love the charm.

We do want to be fairly confident that the property itself

is actually fairly solid.

On a day like this, it's not too bad,

but in the middle of the winter,

I imagine this bit of coast gets a bit of a battering.

It's certainly non-standard construction,

so if you're thinking about getting a mortgage on this place, forget it.

OK? The roof, again, it's not what you'd would ideally like,

but get a builder to check that out

and see if it's at least watertight.

I would want to spend a bit of time and effort

out here sorting out this sort of front area.

That could be improved quite well.

But what you can't take away from this place is the location.

Because you walk out the door, you sit on your seat,

have your cup of coffee or tea, and you look at that view,

and you go, "Yes!"

# I'm sitting on the dock of the bay

# Watching the tide roll away

# Just sitting on the dock of the bay wasting time. #

So it is a great location,

and fabulous views as far as the front of the property is concerned.

However, things aren't quite so appealing at the back.

Well, just behind the property there's good and bad news.

Basically, this is the railway line that links Barrow and Carlisle.

The trains don't come along that frequently.

And when they do, they're not exactly THAT noisy.

The bad news is that the land itself is owned by Network Rail.

I say bad news, because even if you do own this beach bungalow,

the landowner, Network Rail, have the power

to ask you to vacate with just three months' notice.

And, not only that,

any prospective buyer has to make an application

to continue the lease.

Should that application fail,

the sale of the property would fall through.

# I've got the power... #

And power of another kind might also be a factor for some would-be

purchasers, as Sellafield nuclear power station is just a few

hundred yards down the beach.

# ..I've got the power... #

With all these factors, this is one to consider carefully.

I'm wondering about that power of approval of the purchaser,

held by the landowner in this case.

Where would that leave a buyer at auction,

where transactions are normally unconditional

and completion normally takes place

within a month of the hammer falling?

We asked the man who wielded the gavel on this sale to explain.

The method of sale is going to be slightly different with this

one at auction, in that

it's going to be offered not unconditionally.

But it will have to be offered conditional

upon a Network Rail receiving an application

and passing that application for a prospective buyer.

So there will be a period allowed for that application process.

Should the application process fail,

and Network Rail refuse the application, then the sale is off.

The buyer gets his deposit back, and the vendor will probably

decide whether it will be re-offered at the next auction.

That's some reassurance, anyway.

The guide price was £30,000 plus.

So, what are the potential returns for this beach bungalow?

If this property was exposed to the sales market after you

refurbished it, then the property would probably achieve

a figure in the region of £40,000.

The auctioneer also believes it has limited rental potential.

It's not in an area traditionally associated with holiday lets,

so perhaps this is one that investors

wouldn't be fighting over.

But as a beach bolt-hole, I still find it pretty attractive.

Well, there are clearly problems with this place,

and no, it's not the building itself,

or the roof, or the floor, it's that whole thing with the lease.

That is an uncertainty I don't like.

That said, I'd still take a gamble on it.

I love the location and it's got charm.

Let's see who fell for that charm when it went under the hammer.

We're off to the seaside, lot number 38. Anybody here for this?

15?

15 here. At £15,000 we're away.

16 anywhere? 16 seated. 17, may I say?

18. 19. 20.

20, I've got. 21. 22.

23. 24. 25.

25. 26.

26. New position. 27. 27 I've got. 28.

29.

29 I've got. 30, may I say?

30 I've got. 31?

31 I'm bid. 32.

Shake of the head at 32.

With you, madam, at 31.

At £31,000, and for the first time.

At £31,000 for the second time.

At £31,000 then, for the third and final time.

With you, madam.

So, for £31,000, a successful bidder for the greystone,

two-bedroom bungalow is local lady, Marge.

She works in an operational support role for a local employer.

She and her sister Kath joined me down at the beach.

-Kath, Marge, good to meet you both.

-Nice to meet you, too.

Congratulations. Tell me why you wanted to buy this place.

I've bought it for a holiday home for me and my kids.

What an amazing place to have as a holiday home.

-It is, it's a lovely place.

-How old are your children?

I got a 16-year-old and a 12-year-old.

-Megan's 16, and Sam's 12.

-So, what do they think about it?

-Erm, looking forward to it!

-Yeah.

-Yes.

-Yeah.

Do you have family as well?

I do, yes.

-Are they excited about coming down here?

-They are. We are.

My husband and I actually have a caravan on one of the sites locally.

-Oh, great.

-We spend most weekends in the summer down here anyway.

Oh, right. So that's really worked out well.

-And I'm renting one at the moment next door to her.

-Oh, right.

So, did you know about these little sort of houses?

My husband and I came down just shy of 30 years ago,

and we were looking at buying on the front.

Not this one, but these were here then.

Actually, the one we were interested in isn't there any more.

Sadly, Marge's husband died suddenly two years ago.

This area had been a place they both loved to visit,

so this is clearly going to be

an important, emotional purchase for her.

So that lease approval is vital.

Let's go on to some of the legal sides of the property.

One of the issues, of course, is the land, isn't it?

You now own the property outright, but the land is leased.

What kind of term of lease have you got?

It's a 12-month rolling contract, but one of the clauses in the lease

-is that they can give me three months.

-At any stage?

-At any stage, yes.

-Presumably you can have the house.

-Yes, I can. Just got to move it!

-How does that make you feel?

A little bit nervous, but it was here 30 years ago,

so I don't feel that bad.

I could have paid £2,000 more

and got a two-bedroomed terraced house up the road

from my property, but it hasn't quite got the same kerb appeal.

No, well, there is that.

This is a great opportunity for Marge to make some really happy

new memories with her family.

She aims to have the beach bungalow holiday ready in a couple of months.

So what are you going to do then to sort it out?

I'm going just chip back the door frames and put in new reveals.

I'll probably paint it a different colour.

A new kitchen inside, and a new back door, really.

What's the budget for doing what you're planning?

-Probably £2,000-£3,000.

-And who's going to do the work?

-Friends and family.

-A joint effort, you know?

Anybody that's got a couple of hours to spare can wield a paintbrush,

-that kind of thing.

-Or a screwdriver.

Are the kids going to get involved in doing some of the work?

-Oh, yeah.

-Yeah.

Well, listen, congratulations. I'm really happy for you.

-Good luck with it.

-Thank you.

-Looking forward to seeing how you get on.

-Yep.

-Good.

Well, Marge is clearly delighted with this place,

and it will be a wonderful place for her

and her family to enjoy summer holidays and the like.

And with sister Kath's help they should be able to get it

sorted for that £2,000-£3,000 budget.

The big cloud on the horizon is the lease, or lack of it,

and the fact they could be kicked out of here any stage with just

three months' notice, but if you can live with that, then, heck,

there are hopefully some good times ahead.

Join us later in the show

when we find out how they sort this place out.

This is Carshalton in Surrey, and very pretty it is too.

Now, the old part of town is centred around the ponds and a traditional

high street, with the station just literally up the road,

so you can nip into town in just under half an hour.

Carshalton was in fact once a centre of

lavender growing before housing took the place of fields.

The question is,

will the property we're here to see have that sweet smell of success?

# Lavender blue, dilly dilly

# Lavender green... #

You can imagine Carshalton was once a little waterside town,

nestled in the Surrey countryside, but its quaint shops

and leafy location has contributed

to its popularity as a commuter hot spot.

Unfortunately, that brings with it a lot of traffic, which seems to

be one of the drawbacks of the property I'm here to see.

So, we'd left the pretty ponds and cute high street behind us, sadly,

and just on the edge of town is the property we're here to see today.

It's much more of a suburban feel round here,

but you're still only ten minutes walk or so

to the train station,

which has got to be one of the main attractions.

Now, the house itself has got three bedrooms and a guide price

of £160,000, and it's screaming out

for some off-road parking.

I'm going to have a look around.

It would be worth getting permission to lower that kerb,

then you could park your car away from the busy road.

Not great for the outside view, though, so how about the one inside?

The first thing I would do would be to get a new,

efficient, double-glazed door,

so you don't hear any of the road noise.

But what a welcoming hallway.

Loads of room for storage, your coats,

lots of under-the-stairs storage, and you can even think about

knocking these through too, to have a loo.

You've got a lovely space through there for your lounge,

and in here, what a fabulous area.

It's bright and sunny, somewhere for the kids to sit up -

a little breakfast bar. The kitchen,

I really like this sort of U-shaped design.

Obviously, it's all very dated.

It needs ripping out and starting again.

What's through here? What a nice surprise, check out the garden.

This space is possibly three times the length and, at present,

also the height of your average semi-detached garden.

So it looks like it's going to need a combine harvester rather than

a strimmer to deal with this wilderness.

Some of the local residents might not be pleased to be moved on.

But look at the house. It's easy to see the potential here.

There's plenty of room for a single-storey extension,

just like the neighbour's, or moving up into the loft.

Again, just like next door.

Back inside, and upstairs there are three bedrooms, two doubles

and a small single.

And a bathroom suite that's just starting to show its age.

In general, though, it all feels a little compact up here,

so if money's tight and you're looking to create some space,

then I think I might just have a sneaky solution for that.

So, how do you add space to a property without extending it?

Sounds like a trick question? Well, it's not, you just remove this baby.

Now, gaining that extra couple of feet can make all the difference

to the feel of a room, and suddenly, well,

you're not restricted to where you can fit in your furniture.

It's a reasonably big job since you have to continue to support

the chimney stack above the bit you're removing with steels,

and it must be done properly and with care.

But if you're struggling for space, all the muck and mess

and extra cost could be well worth the effort.

Removing those chimney breasts would certainly be cheaper

than adding a new extension or converting your loft.

But it's no weekend DIY job, it's a task best left to professionals.

So loads of potential and, despite the traffic,

a good location in Carshalton.

But bearing in mind its guide price of £160,000 plus,

does a local estate agent

think it would be worth spending a substantial sum here?

The golden rule in sort of refurbishing a property is to

spend the least amount for the maximum effect.

With this property, I do think it leads uplifting.

I don't think it's going to take that much, really.

You would probably get away with spending about 15 or 20,000 maybe.

And if you're more prudent, less.

So with that guide price of £160,000 plus,

what sort of returns could the new owner expect?

Once it's refurbished, probably around £250,000.

What could you let it for?

This property would probably achieve around £1,250

per calendar month.

This is a decent house in an excellent area with scope to

improve and add value, which is what everybody wants from an investment.

Let's see who went for it at the auction.

Lot 21, Carshalton, not too far from Sutton.

I think it's worth 190? 190?

Let's start the other way. 150?

Bidding at the back, 150.

155? 155. I see you.

160 at the back.

161.

162.

163.

164?

163 with you. New bidder, 164.

There were several interested bidders for this lot.

We rejoin the bidding when it reached 188,000.

187.

188? 188.

189. 190 on the phone?

189 in the room.

First time, second time, third and last time. Are we all...

190, yeah? 191.

192. 193.

194. 195.

196?

195, first time, second time,

third and last time. Are you all done?

Sold, 195. Well done, sir.

That successful bidder who bought it for £195,000 was Trevor.

He's purchased the house along with his friend Mark,

who owns a double-glazing company

and has bought properties in the past.

They decided to team up

after Trevor sold his reinforced concrete business.

I met up with him to find out more.

-Trevor, congratulations.

-Thank you very much indeed.

Tell me why you wanted to buy this on auction day.

How much research had you done?

We don't actually do a lot of research,

we know what the area is worth and we have a figure in our brain.

If we get it at that figure, we get it,

if not, we walk away from the auction, simple as that.

-So, who is we?

-Mark, my partner.

He has a double-glazing firm local to here

and we've known each other 15 years.

We've got on very well together

and we are going into the property market now.

So, what did you like about this property in particular?

It's basically the location, we don't like travelling far

because the older you get...

We have done all the long-distance when I had my own firm,

we was up London everyday and we like local stuff

and it's easier to keep an eye on.

A lot of our tenants are very good

and we like local stuff.

So, it sounds like you're developing full-time at the moment.

Half and half.

Mark still keeps his business going, I keep my building going,

and we would like to do this full-time eventually.

What's it like being a landlord?

It's quite nice.

I should have done this years ago, to be truthful.

But you get so busy at work with the paperwork but I enjoy it.

I don't enjoy the paperwork side and I think Mark doesn't either.

That's why he's shot off on holiday while we are down here.

-He's left you to it today!

-That's my Mark.

We have our rows but we always come to an agreement.

We are quite flexible.

Ah, yes. Flexibility is the key to a successful partnership.

Trevor and Mark have been friends for 15 years

and have spent the last 18 months buying and renovating properties.

They plan to get this place up and earning in just six weeks

and hope their budget of 20,000 will be adequate for the job.

Any extensions for that, going into the loft?

No, we purely buy these for rent at the moment.

In future, we would more than likely think about an extension

out the back if we got round to selling it

but these are long-term investments

so more than likely the children will have the benefit of all this.

Are you thinking about knocking any walls down

because at the moment I quite like the layout?

I rarely say that when I walk into a property like this.

Funnily enough, this works for me.

It's not the biggest three-bedroom semi you will find in England

but I like the layout here.

I know it's old but this will all be new worktops and it works for us.

In my ideal world, I would probably like some doors here

but you have a back door there.

At the moment it's all boarded up

but when it's glazed it will let more light in

and we might think about doing French doors but we will see how the budget

goes and if we are under budget then we will put some French doors in.

Yeah, if your partner has a double-glazing company,

why not fit those doors there, bring the outside in?

-I can bend my head around that one.

-Mull it over, Trevor.

I think it's a great idea.

But since an extension

and loft conversion are not presently on the cards, I'm going to

play my last card and ask what he thinks about those chimney breasts.

Trevor, just to get a little bit more space in here, there is enough

room for a table but there could be more room for my liking.

What do you think about taking out the chimney stack

while you've got the builders in?

We have thought about it, to be truthful.

I'm very pro-removing them, I think it will give it more space but Mark,

my partner, is more pounds, shillings and pence wise

and he thinks the cost involved doesn't warrant it.

So, it's quite a bit of work but long-term it would pay off.

We will see. As they say, we will get back to you on that one.

-So, you are quietly confident, aren't you?

-Very confident.

-We are always confident.

-Trevor, good luck with the project.

-I can't wait to see how it looks. Well done.

-Thank you very much.

Always confident, I love that.

Six weeks, tenants in, get the rent flowing, bosh, done.

Find out if it's that simple later on in the show!

Coming up in Stoke,

will this former council house passe my quality control test?

It's solidly built, listen to that,

the stud partition wall.

This three-bed semi in Surrey had a great layout

but will the budget add up and make Trevor clever?

You've got to be a clever person to get it dead on budget.

But first, Marge's Cumbrian coastal retreat hasn't been all that

relaxing so far.

I was down nearly every night and all weekends

doing the painting, et cetera.

It was on the Cumbrian coast between Whitehaven and Sellafield

that we first encountered a very interesting auction lot.

# Down on the beach... #

Described as a two-bedroom beach bungalow,

its location was both a plus and a negative.

The beach was at the front

and the train tracks at the back on land owned by Network Rail.

However, it came with a rolling lease that meant the new

buyers could be asked to vacate with just three months' notice.

But since the beach bungalow had been here for over 30 years,

local lady Marge, encouraged by her sister, Kath, decided after

taking advice that it was worth the risk and bought it for 31,000.

I have bought it for a holiday home for me and my kids.

-What an amazing place to have as a holiday home.

-It's lovely.

-How old are your children?

-I have a 16-year-old and a 12-year-old.

This area had long been a favourite for Marge and her late husband

and with Kath's family having a caravan nearby this bungalow looked

the perfect place for a holiday home for Marge and her son and daughter.

# ..Takes me back to the place

# That I know

# Down on the beach... #

So, armed with a £2-£3,000 budget,

Marge was hoping that with the help of family

and friends she could get the beach bungalow ready in around two months.

Well, three-and-a-half months later

its time to grab our bucket and spade

and go back to the beach.

MUSIC: "Echo Beach" Martha And The Muffins

On the outside, there's fresh paintwork

and a new decked area which is well under construction.

It will be a lovely spot on a sunny day to sit

and watch the tide rolling in.

While inside,

the central lounge is now a welcome retreat from the grey skies.

There's new laminate flooring,

and heating and it's completely refurbished throughout.

As are the two bedrooms which are now modern and bright.

But perhaps the biggest change is in the kitchen.

We've put a complete new kitchen in, there was nothing, originally

but a sink unit, a Rayburn cooker and a large boiler in the corner.

So we've taken out the Rayburn, tiled the back of the wall,

put a free-standing cooker in and a combi-boiler that works really well.

The kitchen is looking great and with the bathroom given

a full makeover, complete with electric shower,

this has been a comprehensive refurbishment from ceiling to floor.

When I got the property three months ago,

all the floors needed to be changed,

the floors have gone up by four inches,

the original people decided, after a period of time,

they would put central heating in.

What they did was lay the pipes

over the top of the original floor and put a false floor over the top.

So we have changed that because we had a step going into the kitchen

which is not there any more.

I changed the patio doors which I didn't intend doing

but after I got the property realised one of the doors was jammed solid.

The dining room table and chairs in, the two sofas.

I'm pleased with the finish.

I think all of the greens set it off and finish it off nicely.

Well, Marge has certainly made this house very green.

It's now a pleasant environment just to relax in and enjoy the scenery.

So, who did all the work?

I had a contractor in doing the work and he's been brilliant.

He's done everything for me.

I was down every night and weekends doing the painting et cetera.

The previous occupier had bright red walls in here

so it took a bit of covering.

There are still a few external jobs to finish off which,

for the time being, the weather has prevented.

But, as she bought this as a holiday home for herself and her family,

what do her two children make of their beach bungalow?

# We're all going on a summer holiday

# No more workin' for a week or two... #

They love it. My sister has a caravan

and when we were children we had a caravan on the other caravan site.

So, yeah, born to it.

When the sun does shine brightly you can see it's a great holiday

location and it's now a great holiday home too.

But did her proposed £2-£3,000 budget survive the changes?

Including the decking, it's coming in just under £5,000.

So I'm still quite happy with that.

Well, her £5,000 spend on top of her £31,000 purchase price takes

the total outlay to 36,000, not including tax and other costs.

What do two local property experts, including the auctioneer

who sold the property, make of her refreshed seaside retreat?

When I saw this property a few months ago it was completely

different to what it is now. What a transformation!

Very, very impressed with the result.

The most important thing is the lady has put heart

and soul into trying to make this a homely place for herself

but, to be fair, this property isn't about the dwelling,

it's about the location.

And with that in mind, dependent upon your point of view,

it's either heaven or it's hell.

The lease for the land that the bungalow sits on is

owned by Network Rail who have the right to give three months'

notice to leave, that inevitably affects the value of the property.

So, having spent £36,000 on it, was it a good investment for Marge?

I think you would achieve in the region of £45-£50,000.

If we found the right buyer, on the right day with the sun

shining I would anticipate getting somewhere between 45 and £50,000.

Those valuations could mean a potential pre-tax

profit of between £9,000 and £14,000.

So, what does Marge make of those resale figures?

They're probably right.

A property is only worth what somebody is prepared to pay for it.

So, yeah.

This type of property is not traditionally rented out

but the estate agents said rental values in the region of £350

per calendar month might be possible for a long-term tenancy

and an annual income of around

£5,000 on the holiday letting market.

Both of these would generate a healthy yield.

But, for Marge, buying this place was less about the money

and more about having a family holiday home in a place she loves.

I think it's very tranquil. I sit and look out the patio doors

most of the time watching,

just watching the tide.

Yeah, looking at the Isle of Man on a good day.

# I left my soul there

# Down by the sea

# I lost control here

# Livin' free... #

This is Blurton - once a small rural community.

It's now a suburb of Stoke-on-Trent in Staffordshire.

Up until the mid-1900s, most of this area was farmland

used for growing crops for the nearby pottery towns.

From 1945 onwards,

large areas of it were bought up by the local council to build housing.

So, not surprisingly,

the property I am here to see is an ex-local authority property.

This is it, three bedrooms on a nice corner plot.

A guide price of 67,500 quid. Let's go inside.

It actually looks pretty good from the outside,

there's plenty of off-road parking made of modern block paving

which would look great after some weeding.

What have we got? Nice little porch area, keep the cold out.

Hallway here and into your front room.

If you watch the show a lot,

you will know I am a huge fan of ex-local authority housing.

Generally it is solidly built...

That is the stud partition wall, that's brick.

The rooms are a good size. Take for instance this,

the front living room. Really nice.

They are built to last and that's great.

Look at this kitchen for instance.

Through here, a really nice size

kitchen/family dining area as well.

Out the back there, utility space, downstairs loo.

Yes, it needs some work,

new units in here and it needs tidying up

but the space you have to play with is fantastic.

Upstairs, there are three good-sized bedrooms.

All three could do with a bit of redecorating

but everything is in good condition.

The bathroom might be a little dated but it's perfectly functional

so you could leave the suite as it is.

As for the loft, it's all boarded out and there's even a roof window.

It's not suitable to be used as a habitable room

and there's only ladder access for a start but it's ideal for storage.

All in all, a very good solid semi.

At the rear of the property, this conservatory which is a nice

additional thing and you step out into the back garden.

So, what kind of a garden would you expect?

Well, probably something to end about here.

Well, no, actually you've got double that. Look at that.

Absolutely unbelievable.

The garden stretching another... oh, however far that is.

Absolutely huge, big enough for a football pitch, perhaps,

a small one.

This is an added bonus, a perfect haven for a family to enjoy.

But I'm afraid it's not all good news.

There is one possible hidden problem.

# I just heard some real bad news... #

Now there is one potential fly in the ointment with this property

and it's really not that obvious.

It's all about having local knowledge,

an example of where you really need to do your research

because around these parts, especially this housing estate,

and other areas like it, they used stuff called red ash -

it's basically the mining residue, the slag from the mining industry -

and they use that for hard core to go underneath floors.

They then put concrete floors on top.

Over time, some of that mining waste contains chemicals which

reacts with the concrete and that can have all sorts of complications.

It can cause the floor to bubble

In the worst case scenario

it can damage the foundations of the property.

It's easy to get a survey done to check the state of the red ash

and to give you the all clear or the beware.

It's something you need to know about

because when it comes to getting the mortgage,

if a mortgage company finds out there is red ash

and it turns out to be the nasty stuff, you won't get a mortgage.

So a potentially big drawback for a property with a lot of potential.

We invited a local estate agent to tell us about the options

for this house, guided at £67,500. Is there room

to add value to this already quite sizeable semi?

The first thing that strikes you is the size of the property,

three good bedrooms,

plenty of reception room space and what is

an extremely large garden.

You could extend to the ground floor without really overdeveloping

the site.

The loft, although it's had a Velux window put in,

I would not suggest that that is further developed.

You can spend a lot of money and really gain little.

The guide price was £67,500, what sort of returns could

the house make on the resell and rental markets?

The value of this property, with little improvement, somewhere

in the region of £80,000, maybe 85 if you spend that little bit more money.

Looking at the rental possibilities, you are going to be

looking at somewhere 450, £475 per calendar month.

Well, as is often the case with ex-local authority housing,

a lot of property for the money and it's solidly built.

Good sized rooms and, boy, oh, boy,

a massive garden that you could potentially do some things with.

Let's see who fancied the opportunity

when it went under the hammer.

Lot 71. 60, can I say?

55, then? 55. Took it there. 55. 60? 60. At £60,000.

65? 65,000. 70?

No, take one if it helps. It does. 66.

67. 68. 69. 70.

71.

No, at 71,000 in the blue shirt.

At £71,000. 72, anywhere else? 72.

No. 72, the lady's bid on the front row. At £72,000 then.

For the first time, at £72,000. For the second time,

third and final time. At £72,000.

Your lot, madam, well done.

That bidding was a bit of a roller coaster but it was

bought for £72,000 by Donna Marie who lives in Staffordshire.

She works as a freelance lettings manager

and is building up her own property portfolio.

Her mum, Chris, has been developing property for 25 years

and Donna Marie now looks after her portfolio.

I met up with them both to hear about their plans.

Chris, Donna Marie, lovely to meet you both. Congratulations.

-Thank you.

-Tell me about why you wanted to buy the house.

It fits the bill for a rental, really.

It's got a few extras with conservatory, porch,

large garden, and the figures stacked up.

-Is this something you've done before?

-Yes.

-Many times?

This is number 13.

-Oh, wow!

-Yeah.

-She looks after my properties, as well.

-Right.

-Because I've been in the business for about 25 years.

-Oh, well done.

But I've got deteriorating health and, two years ago, I had a stroke.

And since then, she's been looking after my portfolio for me

-and everything.

-Right. But you taught her how to do it, did you?

-I give her a lot of help and support, don't I?

-Yeah.

I was in IT and telecoms, worked for the same firm for 15 years or

so before I left work 18 months ago, and decided to go into it full-time.

With her deteriorating health, I couldn't work in the industry

I was in and look after her property, so it was...

So is it working well for you? After you left a sort of normal

nine-to-five job and you're doing this now?

Yeah. No regrets, really.

It wasn't so much a nine-to-five job, I was a corporate account manager and

all over the place, working all sorts of hours, but for somebody else.

So no regrets whatsoever.

But it was just slightly ironic that a couple of months after

leaving my job and having private health care with that,

I was diagnosed with cancer.

HE GASPS

All clear now. But it did slow me down slightly.

So I had to stop buying, because I couldn't risk being out of action

and not being able to get the houses done and mortgages to pay, et cetera.

-No regrets, but just a bit...

-Very stressful, wasn't it?

-For everyone.

-Yeah.

-Yeah, no kidding.

Well, I'm glad to hear that your health is back on track.

-Yeah, yeah, all great now, thanks.

-Good.

Well, the last few years have certainly seen tough times

for Donna Marie - change of career,

recovering from cancer and her mum Chris's poor health.

But she still found time to build a growing rental portfolio.

How many do you think you might actually end up going for?

-We bought three at this auction.

-Gosh.

One was for my mum, which we turned over in two weeks

-and the tenant's moved in just recently.

-Oh, my word.

This one's going to be a short turnover, and then the other

one is sat waiting for me to start as soon as this is finished.

What's your prediction on how long this is going to take?

I've had a few applications already from people who want to live here.

Oh, right.

And one, ideally, would like to move in, in about eight days.

-Eight days? From today?

-Yeah.

I think to two to three weeks, realistically, to get it spot-on.

I'm allowing that, but if I want that particular tenant,

it's possible, it's easily... There isn't a lot to do.

All the tradesmen are scheduled in, all the materials have been ordered

so there's no reason why it couldn't be done in eight days to two weeks.

Eight days?!

Well, apart from a new worktop and some re-tiling in the kitchen,

the main aim here is just to spruce the place up for the rental market.

Mum, Chris, can't be hands-on with the renovation.

In fact, she and her husband are heading off to

Spain for the winter, leaving Donna Marie to it.

She's now built up a team of good tradespeople she can call on,

and hopefully, all on her £2,000 budget.

The only upcoming cost that may affect this

property in the future is it's got red ash. The chemical reaction hasn't

actually happened yet, so there's no damage and there's no concerns,

-and it is mortgageable, because I got a mortgage on it.

-Right.

At what point did you get involved in this one?

And do you get involved in your daughter's business any more?

-I go to view nearly all of them with you, don't I?

-Yeah.

-Great.

Two sets of eyes are better than one. So when we get to the stage

where we're working out the budgetary requirements, it's always

nice for us both to put our heads together and she helps me along.

Great. Congratulations, lovely to meet you both,

-look forward to seeing how you get on.

-Thank you.

-Thank you.

-Yes, we'll be back.

Thank you very much.

So Donna Marie learning some

fantastic skills from her mum, Chris.

Property number 13, will it be lucky or a bit of a burden?

Well, certainly, it's a tight schedule and budget.

Something tells me she'll be just fine.

You can find out how it all goes later in the show.

We always hope our buyers set themselves realistic timescales

and budgets.

Well, there's only one way to find out,

and that's to catch up with them after they've done the work.

We're back in Carshalton in Surrey, where earlier, we saw this three-bed

semi-detached house, which sold at auction for 195,000.

It was bought by builder Trevor,

who had sold his reinforced concrete company and teamed up

with his friend of 15 years, double-glazing businessman, Mark.

They were developing a portfolio of rental properties.

Mark couldn't be there when we first visited,

but Trevor was certainly open to my suggestions for this semi.

Just to get a little bit more space in here,

would you think about taking out the chimney stack?

We have thought about it, to be truthful.

I'm very pro-removing them, I think it will give it more space. But Mark,

my partner, he's a little bit more pounds, shillings and pence wise,

and he thinks the cost involved doesn't warrant it.

I also thought French windows here would be a great idea.

Trevor and Mark had a budget of 20,000, which seemed adequate.

But their six-week timescale could prove a bit of a challenge.

It was, in fact, five months later that we returned to see just

what had finally happened.

Well, it might not be so sunny today

but the house definitely looks brighter and more welcoming.

With new windows installed, that garden has now been opened up

for a much-needed driveway, but is the inside just as improved?

Well, the hallway's looking good, but go straight through to

the back, and it's the kitchen that has been given a great new look.

And I'm delighted to see that new French windows are in.

I'm not sure if you can remember last time we were down here,

we had a window over there, and there was a doorway over there.

Blocked the old window up, we've put the new French doors in,

ripped the old kitchen out, as you can see, with a breakfast bar here

and, basically, refitted the whole lot and jiggled it to,

you know, so it's a lot more manageable in here now.

Fire breast behind you has been removed, new laminate flooring,

that's about it, really. Makes it sounds simple, doesn't it?

I'm glad the budget did stretch to those French windows,

it really helps bring light back into the kitchen.

I'm also pleased to see another bit of my advice was taken on here -

those space-grabbing chimney breasts are gone.

And I think it is a great result.

For self-confessed penny-pinching Mark,

it must have been a hard decision to make.

I wasn't too sure, but it cost £1,200 to £1,500, so...

And it gives a lot more room, so.

I reckon it's money well spent on creating a nice new home.

From a brand-new bathroom suite...

..to new gas central heating, new doors, new electrics,

there's new almost everything.

We like quiet lives. We give people a nice start,

and all our tenants are more like friends, now, rather than tenants.

They get a good start with the kitchen,

everything's new and we don't get any phone calls in the evening.

We might get the odd one, "Something's just broken," but

we'll get that fixed within a couple of days or something like that.

# And I got a peaceful, easy feeling

# And I know you won't Let me down... #

Do the work upfront and it all leads, hopefully, to a quiet life.

Although Mark may have a reputation for being tight with

the pennies, he's certainly generous when handing out the praise.

I think Trevor's done most of the work, all the work, more or less.

I've just done bits of plastering, but I think it is fantastic.

I think the decorator's done brilliant, I think it's brilliant.

What's also looking much improved is the garden.

It took its share of hard work and graft to clear up,

but now it's a perfect complement to the house.

If you look closer, the garden appears to have shrunk a bit,

which could prove good news for Trevor and Mark.

Basically, the garden is too long at the moment, and one of

the neighbours is interested in purchasing it

because he likes his allotments and stuff,

so a bit of land at the bottom of the garden is always hard to put a figure

on, so I'm sure we'll come to an agreement somewhere along the line.

That could certainly help to recoup some of the money spent here.

Trevor's work as a builder often took him onto other jobs,

which meant this renovation was put on the back burner.

That stretched its turnaround from the scheduled six weeks

to five months.

So, with those new French windows and those chimney breasts removed,

how did their original 20,000 hold up?

I think we worked out about 20, 23, 24 but...we always...

I mean, it's never going to be dead on budget, so...

You've got to be a very clever person to get it dead on budget,

but, no, we're quite happy on 23, 24,000.

So, add that likely 24,000 spent to their purchase price

of £195,000 and their total outlay comes to about 219,000.

Time to find out what two local estate agents think of Trevor

and Mark's new entry onto the property market.

Excellent, a complete transformation of this property.

The last time we saw it, it was really bedraggled.

You know, it's really presented well,

nice and neutrally decorated, it's looking really good.

my first impressions of the property are that

I think it's been done really rather well,

they've obviously put double glazing in, gas central heating,

and they've put, obviously, the new kitchen and bathroom.

They've finished off the garden well and they've even finished off

the driveway, giving parking for two, maybe three cars,

and that's a real bonus with a property like this.

So far, so good, but with them aiming to put this house

onto the rental market, what sort of returns could they expect?

For rental, per calendar month,

I would expect to achieve about £1,200.

I would put this property on market at around £1,300 per calendar month.

-Rent was very good, actually, I thought.

-Yeah. Rental, 13, 12, 13.

Yeah, no, it's very good, the rental on that.

-That's what we hoped to do, so...

-So that's what it will be.

Those sort of figures could give Trevor

and Mark an annual rental yield of around 7%.

But should they change their minds on their 219,000 investment,

then the estate agents reckon a resale could achieve 250,000,

giving them a profit of £31,000, minus the usual tax and expenses.

But with the rental market the preferred option, this is

going to stay in their portfolio for the foreseeable future.

-So will they work together again soon?

-Yes.

-Yeah.

We get on very well together. We get on very well together, actually.

-He does all the work.

-Mark sits back and collects the money.

Back now to Blurton in Staffordshire.

Earlier in the programme, Donna Marie paid £72,000 for this

three-bedroom former local authority property.

And mum, Chris, has been developing properties for 25 years

but ill-health means she now has to take a back seat.

Donna Marie's also had a tumultuous time - having changed her

career to property, she then had to undergo cancer treatment.

Now fully recovered, she's not one to let the grass grow under

her feet and has a few properties under her belt.

-This is number 13.

-Oh, wow!

-Yeah.

-She looks after my properties, as well.

-Right.

-Because I've been in the business for about 25 years.

Oh, well done.

But I've got deteriorating health and, two years ago, I had a stroke.

And since then, she's been looking after my portfolio for me

-and everything.

-Right, you taught her how to do it, did you?

-I give her a lot of help and support, don't I?

-Yeah.

She bought two others at the same auction.

She planned to have this one ready in just eight days for tenants

who were waiting in the wings.

Mum, Chris, thought two to three weeks was more realistic.

So, who was right? Four weeks later, we're back in Blurton to find out.

At the front, the weeds have been pulled from the paved parking area.

Donna Marie has successfully brought out the best in this house.

The living room now looks fresh and inviting.

And the conservatory has also been spruced up.

Upstairs, those multicoloured bedrooms have been muted

and there's now matching carpet throughout.

Downstairs, work is well advanced in the replastered cloakroom

and the kitchen has benefited from some subtle changes, too.

In the kitchen, there were some old tiles around this area here

and an old worktop. They've now been replaced.

A good clean and tidy, freshen up of the paintwork, and that's about it.

# I'm the cleaning woman Here to clean up your mess... #

With her growing property portfolio,

Donna Marie is very focused on the auction lots that she targets.

When I look for a property,

I'm either looking for a larger project, which I normally buy cash

and then look to increase the value on it quite substantially,

or I look for a property like this that needs very little work,

it's mainly cosmetic, so a very small budget needed, a fast turnover,

and, obviously, get tenants in as soon as possible.

She normally allows around £5,000

to refurbish the kitchen and the bathroom.

But the bathroom in this property hasn't changed,

so that's money she's saved.

There was a lot of local interest in the house.

Finding a tenant wasn't difficult at all.

I actually advertised it before any of the work had even been done,

and the response I got was really high.

So the family that are moving in have got three kids,

a couple of dogs, ideal for this property.

That massive garden has been tamed a bit. It all sounds

ideal for the new tenants, who will be paying £500 per calendar month.

It's been a fast turnaround, with the job completed in just ten days.

So, how much has Donna Marie herself been responsible for?

I had the tradespeople in to do the skilled tasks and, pretty much,

I did everything else with the help of a couple of my cousins

for a couple of days.

So everything that you see, I've done, apart from the worktops,

the tiling, the gas work and electrical work.

There's a lot of DIY jobs that have been done throughout the house

that didn't meet safety standards, so they had to be rectified.

What about her mum, Chris? Has she had any input?

Yeah, I mean, my mum's pretty much semi-retired now,

but she's always an ear on the end of the phone, "What should I do?

"Is this a good idea, is that a good idea?"

Well, changing the bedroom carpet was, and I wonder what Mum thought

of that £2,000 budget? Did Donna Marie keep to it?

Yeah, I've come in at just under the 2,000.

I think my mum was saying two to five,

and most of that budget has gone on trade work,

and a little bit on materials, and the rest has been manpower.

# Takes a little more than manpower... #

With the £72,000 Donna Marie paid at auction, takes her total

outlay here to 74,000.

This is the 13th property in her growing buy-to-let portfolio.

So, will it be lucky?

Time to find out what two local

estate agents think of the quick turnaround

of this place and its current market valuation.

Having seen the property before,

coming back to the property,

they've made a good job of kind of freshening the property up,

aimed quite specifically at the rental market.

I think the main selling point of this property is the outside space.

It's rare to get a garden of that kind of size

and also to have ample off-road parking.

Donna Marie has let the house for £500 per calendar month, giving her

a yield of over 8%. Is that in line with the estate agents' valuations?

I'd put this property on the market to rent for £495 per calendar month.

For the rental market,

you'd be looking at a figure of £500 per calendar month.

How much could the house now sell for?

More than the £74,000 that Donna Marie's invested?

If we were putting this property on the market at the moment,

we would set an asking price of £80,000.

I would put this property on the market for £84,950.

Those valuations would produce a gross profit of between

-£6,000 and £11,000 before tax and expenses.

-Good.

Yeah, a little higher than I thought,

but the market's starting to pick up, so that's good.

Nice tenants moving in, so, great.

It's been a very efficient, tidy little refurbishment

and a very good example of, "If it ain't broke, don't fix it."

And Donna Marie has gained a lot of experience from mum, Chris.

I didn't know how much I knew till I started doing it

and you've just picked things up as you go along, really.

Yeah, she's been a great help and influence for me, yeah.

So there you have another three stories to add to our archive.

Yes, there are plenty more where they came from,

as you'll find out the next time you join us on Homes Under The Hammer.

See you then.

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