0:00:02 > 0:00:05- Hello and welcome.- They say every house tells a different story,
0:00:05 > 0:00:07and we've certainly found that to be true.
0:00:07 > 0:00:10Yes, there are always tales to tell and stories to uncover
0:00:10 > 0:00:13when you buy your home under the hammer.
0:00:39 > 0:00:42Auction properties are sold on a buyer-beware basis.
0:00:42 > 0:00:44You need to check them out before you bid.
0:00:44 > 0:00:47Or you could be in for some nasty surprises.
0:00:47 > 0:00:50Let's see if our bidders got lucky with their purchases.
0:00:52 > 0:00:56How would you like a country cottage near Swanley in Kent?
0:00:56 > 0:00:59Only a 25-minute commute from London Victoria,
0:00:59 > 0:01:01if you don't mind brick cladding.
0:01:03 > 0:01:07Or how about a two-bed terrace in Crewe with a guide price of 40,000?
0:01:07 > 0:01:09Oh!
0:01:12 > 0:01:14These properties have been sold at auction.
0:01:14 > 0:01:16We'll find out who bought them and what they paid for them
0:01:16 > 0:01:18when they went under the hammer.
0:01:18 > 0:01:20Sold for 31. Well bought.
0:01:24 > 0:01:29# All I need is the air that I breathe. #
0:01:29 > 0:01:32You might not associate the area around London with fresh air,
0:01:32 > 0:01:34but in Victorian times,
0:01:34 > 0:01:37ailing Londoners were sent to recuperate in this area of Kent.
0:01:38 > 0:01:42Nowadays, towns like Swanley are more favoured by commuters
0:01:42 > 0:01:43than convalescents.
0:01:43 > 0:01:46It's only 25 minutes from Victoria Station
0:01:46 > 0:01:49and has plenty of shops and other amenities.
0:01:49 > 0:01:52A mile or so from the centre of Swanley
0:01:52 > 0:01:57and it's much more rural, with fields and farms as far as the eye can see.
0:01:57 > 0:02:00Some people will love that, and others will find the isolation
0:02:00 > 0:02:03a bit of an issue, so it's worth bearing that in mind.
0:02:03 > 0:02:06The property itself is this, a two-bedroomed end-of-terrace.
0:02:06 > 0:02:12It had a guide price of 120,000 to 130,000.
0:02:14 > 0:02:18This little row of terraces feels rather out on a limb,
0:02:18 > 0:02:22down a rural country lane, and the facade was, maybe, an acquired taste.
0:02:22 > 0:02:25More of that later. Let's just get inside.
0:02:25 > 0:02:27It's a little bit squeezed in here,
0:02:27 > 0:02:30but you would expect that from a property like this.
0:02:30 > 0:02:31A little bit narrow.
0:02:31 > 0:02:35Walking through into the dining room and the cosy lounge.
0:02:35 > 0:02:38Somebody has already knocked through a little archway.
0:02:38 > 0:02:41But it really works and this will be a really nice place.
0:02:41 > 0:02:42You've got a real fire, look.
0:02:42 > 0:02:45You can see some ashes in there. You can burn your logs.
0:02:45 > 0:02:48It needs updating. A little bit tired.
0:02:48 > 0:02:51You just put some new carpet, a paint job, new curtains.
0:02:51 > 0:02:54Great space in here. You could get rid of this area
0:02:54 > 0:02:57and put something else there if you wanted, but it seems to work.
0:02:57 > 0:02:59And at the back of the property,
0:02:59 > 0:03:03which would have been an extension, is the kitchen.
0:03:03 > 0:03:06Currently, it's a little bit dark.
0:03:06 > 0:03:09I would exchange these units for something light and modern,
0:03:09 > 0:03:12because it does get rid of all the light at the moment
0:03:12 > 0:03:16and I think that's got a lot to do with the very dark mock-Tudor beams.
0:03:16 > 0:03:21While I'm on that subject, not sure about the rose leaded lights.
0:03:21 > 0:03:25If they're not to your taste, it would be inexpensive to get rid of them.
0:03:25 > 0:03:30Overall, lots of ticks, but it just needs a bit of updating.
0:03:30 > 0:03:34And general neglect probably accounts for the damp, mouldy patch
0:03:34 > 0:03:36in the little porch area out the back,
0:03:36 > 0:03:39although I'd check there wasn't anything worse going on out there.
0:03:39 > 0:03:42There's a really nice-sized little garden.
0:03:42 > 0:03:46Definitely enough space to entertain a family on a warmer, drier day.
0:03:47 > 0:03:52Upstairs, we have two bedrooms. A nice double at the front.
0:03:52 > 0:03:55The second bedroom is a perfectly good size
0:03:55 > 0:03:59and the bathroom at the rear is also decent and in good nick.
0:03:59 > 0:04:03Nice white suite, freshen up with new tiles and Bob's your uncle.
0:04:03 > 0:04:06# I'm so glad I'm so glad
0:04:06 > 0:04:10# I'm glad, I'm glad I'm glad. #
0:04:10 > 0:04:12But this property is more clad than glad!
0:04:14 > 0:04:18One easy way to give this house a face-lift is - a-ha -
0:04:18 > 0:04:23literally, to give this house a face-lift and remove this cladding.
0:04:23 > 0:04:26Although it's not as easy as you might think.
0:04:26 > 0:04:28Start chipping away at this cladding
0:04:28 > 0:04:31and the surface of the bricks might well come off with it,
0:04:31 > 0:04:36or you could be left with heavy-duty adhesive all over the facade.
0:04:36 > 0:04:39At the very least, the bricks will need cleaning and re-pointing
0:04:39 > 0:04:42and getting the place looking like next door, well,
0:04:42 > 0:04:47it could cost you in the region of £5,000.
0:04:47 > 0:04:48Ouch.
0:04:48 > 0:04:52While I'm outside, I should check out the parking.
0:04:52 > 0:04:54Fabulous! Some off-road parking?
0:04:54 > 0:05:00Er, no. This isn't yours. It's next door's. Shame.
0:05:00 > 0:05:03In fact, believe it or not, there is no parking.
0:05:03 > 0:05:06Very surprising for a rural location.
0:05:06 > 0:05:09It was all looking fairly promising inside,
0:05:09 > 0:05:12but the outside is a bit of a let-down.
0:05:12 > 0:05:14The cladding and the parking might be issues that put
0:05:14 > 0:05:16a lot of people off.
0:05:16 > 0:05:20I wonder what a local estate agent will make of this property.
0:05:20 > 0:05:24One potential negative of the property is the lack of parking as it is now.
0:05:24 > 0:05:27Whether you have a professional couple or young family,
0:05:27 > 0:05:29they are going to have a car, living here.
0:05:29 > 0:05:33Without a doubt, if you can't get a car on the drive,
0:05:33 > 0:05:36some form of parking round the back would be a massive asset to the property.
0:05:37 > 0:05:41What does he think the house would fetch on the open market?
0:05:41 > 0:05:44In its current condition, the property is worth £175,000.
0:05:44 > 0:05:48Once renovated, you could increase that to £190,000.
0:05:48 > 0:05:50And potential rental income?
0:05:50 > 0:05:53If you were to go down the rental route with the property,
0:05:53 > 0:05:56you would easily achieve £850 per calendar month.
0:05:58 > 0:06:01Lots to do and plenty of ways to improve this place
0:06:01 > 0:06:05to make it a lovely home, or a good little rental.
0:06:05 > 0:06:08Let's see who agreed when it went to auction.
0:06:08 > 0:06:14Lot 52, it's got a guide of 120 to 130. 110? 110, I have.
0:06:14 > 0:06:16£110,000 the bid.
0:06:16 > 0:06:20At £110,000, I have. This is lot 52.
0:06:20 > 0:06:22There was a lot of interest in this property.
0:06:22 > 0:06:25And we rejoin the bidding at £148,000.
0:06:27 > 0:06:29148. 148.
0:06:30 > 0:06:36And 149 is bid. And 150. 151. 152.
0:06:36 > 0:06:39152. 153.
0:06:39 > 0:06:43You folded your arms. That's not a good sign, is it?!
0:06:43 > 0:06:48152,000, right at the very back of the room in the centre aisle.
0:06:48 > 0:06:52At 152,000. 153 for you.
0:06:52 > 0:06:56But at 152,000 the bid... 153.
0:06:56 > 0:06:59He's come back for one more. 154.
0:06:59 > 0:07:02155. 156, sir?
0:07:03 > 0:07:08157. 157 is bid. 158?
0:07:08 > 0:07:11No. £157,000 I'm bid.
0:07:11 > 0:07:13You're out at the back. You're out on my left.
0:07:13 > 0:07:18On my right-hand side for the first time at 157.
0:07:18 > 0:07:20158. And 159?
0:07:21 > 0:07:23That really was your ceiling, wasn't it?
0:07:23 > 0:07:26158 at the very back of the room.
0:07:26 > 0:07:28At 159, do I see?
0:07:30 > 0:07:33For the first time at 158,000.
0:07:33 > 0:07:36At 158,000 for the second time.
0:07:36 > 0:07:38100 and... 159.
0:07:41 > 0:07:43I can lip-read, even from this distance!
0:07:43 > 0:07:49At £159,000 for the first time. Gentleman on the right-hand side.
0:07:49 > 0:07:51Three quarters of the way down the room.
0:07:51 > 0:07:55At 159,000 for the second time.
0:07:55 > 0:07:59159,000 for the third and final time.
0:07:59 > 0:08:03159,000. Are you all done? Sold at 159,000.
0:08:04 > 0:08:08After that tense and lengthy bidding battle, the successful bid
0:08:08 > 0:08:14of 159,000 was made by a couple I've met before - Sam and her husband, Philip.
0:08:14 > 0:08:18They are property developers and construction company owners.
0:08:18 > 0:08:23This house in Chatham featured in one of their two previous visits to the show.
0:08:23 > 0:08:27I met them at this cladded cottage to find out what they planned.
0:08:27 > 0:08:30Guys, it's lovely to see you again. It's like we're old friends.
0:08:30 > 0:08:33We meet again. Sam, it looks like you've been in the wars.
0:08:33 > 0:08:37- What's been going on?- I have. I had a riding accident.- Oh, dear.
0:08:37 > 0:08:41But, guys, listen, it's fantastic to see you. Another project on the go.
0:08:41 > 0:08:44I've got to be honest, for you guys, it's a bit of a quick refurb job.
0:08:44 > 0:08:46You like the big projects, don't you?
0:08:46 > 0:08:50You like to completely go for the planning, put big new kitchens in.
0:08:50 > 0:08:55Your last property in Chatham, you did such an outstanding job.
0:08:55 > 0:08:59I can't help but feel this is an easy-peasy one for you two.
0:08:59 > 0:09:00It's relatively easy, yes.
0:09:00 > 0:09:02There is no central heating system, at the moment,
0:09:02 > 0:09:06so we'll put a nice high-efficiency energy central heating system in.
0:09:06 > 0:09:11Take those chimney breasts out. They're a bit dated. We'll put nice cast-iron ones back in.
0:09:11 > 0:09:14We're going to get rid of the Artex and, in the kitchen,
0:09:14 > 0:09:17we are going to square it up.
0:09:17 > 0:09:20That little extension with the dampness, that is going.
0:09:20 > 0:09:22We will square it up and make the kitchen bigger.
0:09:22 > 0:09:24We need to talk about the mock-Tudor beams in the kitchen
0:09:24 > 0:09:27and the leaded-light fake roses in the windows.
0:09:27 > 0:09:29The mock-Tudor beams are definitely going.
0:09:29 > 0:09:32The roses - it doesn't cost a lot for a bit of glazing,
0:09:32 > 0:09:36so I'd say they'll probably go. Of course, the cladding is going, as well.
0:09:36 > 0:09:38Let's talk about the cladding.
0:09:38 > 0:09:41All your neighbouring properties have that beautiful, lovely
0:09:41 > 0:09:46raw brickwork. How hard is it to get rid of cladding like that?
0:09:46 > 0:09:49It's a hit-and-miss, really, how well it's been fixed.
0:09:49 > 0:09:52We have taken a few pieces off, just to see.
0:09:52 > 0:09:54It came off easily and there is no damage to the brickwork.
0:09:54 > 0:09:57Fingers crossed, we're hoping it's going to come off OK.
0:09:59 > 0:10:03Sam and Philip intend selling this house on after refurbishing it
0:10:03 > 0:10:08and have a budget of 20,000 to 25,000 and one big advantage -
0:10:08 > 0:10:11their own construction company.
0:10:11 > 0:10:14So finding tradesmen to do the house shouldn't be a problem.
0:10:14 > 0:10:19Your guys in-house, are they going to be on this and out of here?
0:10:19 > 0:10:21Is it going to be a real quick turnaround for you?
0:10:21 > 0:10:25We'll probably come down and do a bit of the carpentry ourselves.
0:10:25 > 0:10:29- Because it's so easy for us to do it.- How are you going to cope with that?
0:10:29 > 0:10:31You can barely walk on those at the moment.
0:10:31 > 0:10:32How will you cope with your DIY?
0:10:32 > 0:10:36- Because I know, Sam, you love to get involved, don't you?- I do, I do.
0:10:36 > 0:10:38I will have to sit and watch Philip, won't I?
0:10:38 > 0:10:40Guys, I know you're going to do a fantastic job in here
0:10:40 > 0:10:44and it's been lovely to see you again. Sam, take it easy.
0:10:44 > 0:10:49- Thank you very much.- I will. - Good luck.- Thank you.
0:10:49 > 0:10:52So we meet Sam and Philip again.
0:10:52 > 0:10:56And what a nice, easy-peasy project for them this time.
0:10:56 > 0:10:59I am sure they're going to do a fab job on this place.
0:10:59 > 0:11:01You can see what it looks like later on in the show.
0:11:05 > 0:11:06Imagine your predicament.
0:11:06 > 0:11:09You work in Manchester, but you don't want to live there.
0:11:09 > 0:11:11You like travelling the country, but you don't drive.
0:11:11 > 0:11:15Or, maybe, you want to have easy access to places like Chester
0:11:15 > 0:11:18and North Wales, but you can't afford the property prices there.
0:11:18 > 0:11:21I have the answer. Crewe.
0:11:25 > 0:11:29Crewe is famous as a busy hub of the rail service in the North West.
0:11:29 > 0:11:33But it also has a reputation for luxury car manufacturing.
0:11:33 > 0:11:35The town was once the home of Rolls-Royce,
0:11:35 > 0:11:39but today is still involved in the making of Bentleys.
0:11:39 > 0:11:41But enough of industry, what about property?
0:11:41 > 0:11:43So, what am I here to see?
0:11:43 > 0:11:47Well, situated on this slightly busy main road,
0:11:47 > 0:11:53a two-bedroom Victorian terrace. The guide price was £40,000-plus.
0:11:53 > 0:11:56Loads of properties like this were built in that era,
0:11:56 > 0:11:59probably to house railway workers.
0:11:59 > 0:12:01And they can often be a very solid investment.
0:12:05 > 0:12:10Ah. Not quite the welcome mat I was expecting.
0:12:10 > 0:12:12We'll come back to that.
0:12:12 > 0:12:15What have we got? Through the front door into your front living room.
0:12:15 > 0:12:19You are going to have issues with noise from the road.
0:12:19 > 0:12:23It's got double glazing. Maybe want to think about triple glazing, perhaps.
0:12:23 > 0:12:27But, yes, it's not a bad size. Reasonably high ceilings.
0:12:27 > 0:12:29Through here, very standard layout.
0:12:29 > 0:12:33Up the stairs to your two bedrooms, into your real living room.
0:12:33 > 0:12:36When this house was built, that would have been your lot, basically.
0:12:36 > 0:12:39Two up, two down. Very classic.
0:12:39 > 0:12:42But, in this case, it has what is fairly standard in these properties, these days -
0:12:42 > 0:12:47an extension on the back, single-storey, housing the kitchen. Long, galley style.
0:12:47 > 0:12:51At the back, again, pretty classic, where your bathroom facilities are.
0:12:51 > 0:12:54In this case, there is no bath - just a shower and toilet,
0:12:54 > 0:12:57and this strange area here, which doesn't seem to do anything.
0:12:57 > 0:12:59So maybe you could increase the bathroom into that area,
0:12:59 > 0:13:03a bit of extra space, get a bath in there. That would be nice.
0:13:03 > 0:13:06Apart from that, pretty much what you might have expected,
0:13:06 > 0:13:10apart from the slightly dodgy welcome at the front door.
0:13:10 > 0:13:14Decaying flooring and crumbling skirting boards aren't a good sign.
0:13:14 > 0:13:17Overall, the ground floor looks like it needs quite a bit of upgrading.
0:13:19 > 0:13:22So, upstairs, no great surprises with the layout.
0:13:22 > 0:13:24A bedroom at the front and a bedroom at the back.
0:13:24 > 0:13:26Both a decent size, though.
0:13:26 > 0:13:28And, coming into this bedroom at the back,
0:13:28 > 0:13:32a chance to look out of the flat roof above the kitchen and bathroom.
0:13:32 > 0:13:36You'd want to have that checked out, make sure there were no leaks, maybe have it re-felted.
0:13:36 > 0:13:40These kind of two-bedroomed terraced houses like these
0:13:40 > 0:13:45are still very much what people want to buy and rent.
0:13:45 > 0:13:49So, actually, this is a good property to go for.
0:13:51 > 0:13:55And, as the old saying goes, they don't make them like that any more.
0:13:58 > 0:14:01They are homes that feel, well, homely.
0:14:01 > 0:14:04But before I get all dewy-eyed with nostalgia,
0:14:04 > 0:14:06let's go back to that front door.
0:14:06 > 0:14:09Can't put it off any longer. Have a bit of grubbing about.
0:14:09 > 0:14:12Find out what on earth is going on by the front door here.
0:14:12 > 0:14:15Whenever you are looking around a house, do use all your senses,
0:14:15 > 0:14:17as I often say. In this case...
0:14:20 > 0:14:22It's not too good, is it? Floors aren't supposed to do that.
0:14:22 > 0:14:25It's not a trampoline. Let's explore a bit further.
0:14:25 > 0:14:27What is going on underneath all this rubbish?
0:14:33 > 0:14:37I reckon if I delve a bit deeper, I will actually disappear down an unknown number of feet.
0:14:37 > 0:14:43So I think I'll stop there. Clearly, the floorboards have disintegrated.
0:14:43 > 0:14:45That's obviously the joists gone, as well.
0:14:45 > 0:14:48You are looking at a serious amount of woodwork.
0:14:48 > 0:14:51Well, if you're a carpenter, that is fantastic.
0:14:51 > 0:14:52If you have to employ labour to do
0:14:52 > 0:14:54that, it's going to be expensive.
0:14:54 > 0:14:55Oh!
0:14:55 > 0:14:57There we go.
0:14:57 > 0:15:00- HE LAUGHS - I was not expecting that!
0:15:02 > 0:15:04How do I get out?
0:15:04 > 0:15:06Um... Help!
0:15:08 > 0:15:11Joking aside, this indicates a really serious issue
0:15:11 > 0:15:15and an expensive one, so this not-so-solid little terrace
0:15:15 > 0:15:18suddenly seems like maybe not a bargain,
0:15:18 > 0:15:21even at that guide price of £40,000-plus.
0:15:22 > 0:15:26What, I wonder, will our local estate agent make of it?
0:15:26 > 0:15:28Oh, and watch the step when you walk in!
0:15:29 > 0:15:33First impressions of the property, it does need some work doing to it.
0:15:33 > 0:15:37You'll probably need new kitchens, new bathroom, possibly rewired.
0:15:37 > 0:15:40flooring needs looking at, as well, and windows.
0:15:40 > 0:15:43What could the property sell for?
0:15:43 > 0:15:45I think, done up to a reasonable standard,
0:15:45 > 0:15:49we can put this property onto the market for £62,000.
0:15:49 > 0:15:52This is a popular rental area, so what would the returns be?
0:15:52 > 0:15:55I think if this property went to the rental market,
0:15:55 > 0:15:57it would be £450 per calendar month.
0:15:58 > 0:16:01Well, from the outside, a good enough little house,
0:16:01 > 0:16:06but the problems greet you the moment you step through the front door.
0:16:06 > 0:16:09Still, if you factor in the cost of putting it right
0:16:09 > 0:16:13and work out a price that you should pay at the auction,
0:16:13 > 0:16:16with that in mind, it could still be a good one to go for.
0:16:18 > 0:16:21Let's see who bought it when it went under the hammer.
0:16:25 > 0:16:27Lot 43.
0:16:27 > 0:16:30What's this? 30,000, start me here?
0:16:30 > 0:16:3328, then? 28 bid.
0:16:33 > 0:16:35Standing right. £28,000.
0:16:35 > 0:16:3730, are you going to say, now?
0:16:37 > 0:16:40At £28,000. Under 30 now.
0:16:40 > 0:16:42At £28,000.
0:16:42 > 0:16:46I'll go in ones, if it helps. Shall we say 29? 29.
0:16:47 > 0:16:5230, sir? 30. 31.
0:16:52 > 0:16:5632. 33. 34.
0:16:56 > 0:16:58New bidder. £34,000.
0:16:58 > 0:16:5935?
0:17:01 > 0:17:03A half, you're saying. 34½.
0:17:03 > 0:17:0735. No? At £34,500.
0:17:07 > 0:17:09Standing left.
0:17:09 > 0:17:1435 anywhere else? At 34,500 for the first time.
0:17:14 > 0:17:17At 34,500 for the second time.
0:17:17 > 0:17:22Third and final time. At £34,500.
0:17:22 > 0:17:23It's just not quite enough.
0:17:23 > 0:17:26If the bidders would like to come to talk to us.
0:17:26 > 0:17:29Well, the lot didn't reach its reserve price and was withdrawn.
0:17:31 > 0:17:36But, after the auction, the property was bought for £35,000 by Simon.
0:17:36 > 0:17:38He runs a property maintenance business,
0:17:38 > 0:17:42so he is the perfect man to get this place back on its feet.
0:17:42 > 0:17:46I met him at the house to find out exactly what his plans are for it.
0:17:46 > 0:17:50- Simon, good to meet you.- Hi. - You were not the last bidder there.
0:17:50 > 0:17:55- The person before, is that right? - Yes, I dropped out at 34,000.
0:17:55 > 0:17:58Ended up going to the auctioneer afterwards and asking
0:17:58 > 0:18:01if I could purchase this one, and he said 35,000.
0:18:01 > 0:18:06- So somebody had bid 34½, so that didn't get it, but 35 did? - Yeah.- Wow.
0:18:06 > 0:18:08So why did you want to buy?
0:18:08 > 0:18:13Um, just an investment property for myself, and retirement fund.
0:18:13 > 0:18:15Is the plan to do it up and rent it out, or sell it on?
0:18:15 > 0:18:19Hopefully, I've got a tenant that's going to be moving in in around two months.
0:18:19 > 0:18:22Oh, right, already? How did you get them so quick?
0:18:22 > 0:18:23Pot luck, really.
0:18:24 > 0:18:28Simon already owns a buy-to-let around the corner,
0:18:28 > 0:18:30so he does know the area.
0:18:30 > 0:18:34He's got to be actually able to get the tenant across the doorstep.
0:18:34 > 0:18:38- What do you think's happened there? - A bit of woodworm, just general dry rot.
0:18:38 > 0:18:44- I'll redo the joists.- You say that very flippantly. That's a big job!
0:18:44 > 0:18:46Um, I've done quite a bit of woodwork before
0:18:46 > 0:18:49and doing the floors in the last house I did
0:18:49 > 0:18:53was a big renovation job, so it doesn't faze me.
0:18:53 > 0:18:56- What else are you doing? - Re-skim some of the walls.
0:18:56 > 0:19:00Just generally a lick of paint and bring it up to standard for the tenant.
0:19:00 > 0:19:03So any plans for layout changes at all?
0:19:03 > 0:19:06There's a possibility of removing a wall
0:19:06 > 0:19:10and putting a P-shaped bath in there with a shower above the bath.
0:19:11 > 0:19:15Well, his property maintenance background will stand him
0:19:15 > 0:19:16in good stead for the job ahead.
0:19:16 > 0:19:19Although he will be calling in certified tradesmen
0:19:19 > 0:19:21when and where they're needed,
0:19:21 > 0:19:25with, he hopes, the job completed in two months.
0:19:25 > 0:19:29But with £35,000 already invested in the place and a tenant lined up,
0:19:29 > 0:19:34he's going to have to be careful with his budget to make this place pay its way.
0:19:34 > 0:19:36Possibly looking around £6,000 to 7,000.
0:19:36 > 0:19:39And plans for the future, once you've done this one?
0:19:39 > 0:19:42Remortgage and start again.
0:19:42 > 0:19:46- Listen, congratulations. Good luck with it.- Thank you.
0:19:46 > 0:19:50Well, Simon does seem to be pretty laid back about what,
0:19:50 > 0:19:56to most people, would be some pretty extensive renovation work to be carried out.
0:19:56 > 0:19:57A small budget, too.
0:19:57 > 0:20:00Will he achieve as he thinks he will?
0:20:00 > 0:20:02You can find out later in the show.
0:20:06 > 0:20:10Turning a property from a worn-out shell into a home can be very rewarding.
0:20:10 > 0:20:12Oh, and profitable.
0:20:12 > 0:20:17But did everything go to plan for our buyers? Let's take a look and see how things turned out.
0:20:19 > 0:20:22In the commuter heaven of Swanley in Kent,
0:20:22 > 0:20:24just a mile from the mainline station,
0:20:24 > 0:20:28this terraced cottage was in need of a bit of a face-lift.
0:20:31 > 0:20:35# I'm so glad that I'm so glad
0:20:35 > 0:20:37# I'm glad, I'm glad I'm glad. #
0:20:38 > 0:20:40The new owners, Sam and Philip,
0:20:40 > 0:20:43are old hands at Homes Under The Hammer.
0:20:43 > 0:20:46This is their third time on the show.
0:20:46 > 0:20:50They paid 159,000 at auction, without tax and expenses, of course,
0:20:50 > 0:20:55and plan to spend a further 25,000 to the value of this property
0:20:55 > 0:20:57over a three-month period.
0:20:57 > 0:20:59How did they intend to tackle it?
0:21:01 > 0:21:05How hard is it to get rid of cladding like that?
0:21:05 > 0:21:08It's a hit-and-miss, really, how well it's been fixed.
0:21:08 > 0:21:11We have taken a few little pieces off just to see.
0:21:11 > 0:21:14It came off easily and there is no damage to the brickwork,
0:21:14 > 0:21:16so, fingers crossed, we're hoping it will come off again.
0:21:16 > 0:21:20Four months later, and Sam's injury has completely healed.
0:21:20 > 0:21:23They've paved the front garden, which is fantastic,
0:21:23 > 0:21:26and they've also managed to restore the fine brick exterior.
0:21:29 > 0:21:32They've removed the narrow outside door, too.
0:21:33 > 0:21:35Let's see how they've transformed the inside.
0:21:43 > 0:21:47We squared off the kitchen to make this lovely space.
0:21:47 > 0:21:50We obviously bricked up the original entrance to make the nice entrance there,
0:21:50 > 0:21:53which gave the space here for a table and chairs.
0:21:53 > 0:21:57We installed new units, new tiling, new appliances,
0:21:57 > 0:22:00nice grey floor, which I really like, and we modernised it, basically,
0:22:00 > 0:22:03but with that country feel, as well, because we are in the country.
0:22:03 > 0:22:06The central heating had to be completely renewed.
0:22:06 > 0:22:08Checked out the wiring, obviously,
0:22:08 > 0:22:11and we put a new extension on the property.
0:22:11 > 0:22:13We also got rid of that horrible cladding on the front.
0:22:13 > 0:22:15The bathroom was very dated.
0:22:15 > 0:22:17It had an old, square, little shower,
0:22:17 > 0:22:19so we opened it up and put a nice new shower in.
0:22:19 > 0:22:25We redid all the tiling, the walls, put a new floor in, et cetera,
0:22:25 > 0:22:27and just modernised it.
0:22:28 > 0:22:32The longer timescale wasn't because of any difficult issues,
0:22:32 > 0:22:35it was more to do with working round the other projects
0:22:35 > 0:22:37with Sam and Philip's busy construction company.
0:22:40 > 0:22:43Their budget for the work was £25,000
0:22:43 > 0:22:47and their spend was only 20,500.
0:22:47 > 0:22:51That means their outlay was just over £180,000.
0:22:56 > 0:23:00One issue that hasn't been solved yet is the problem with parking.
0:23:00 > 0:23:06Their new paved area at the front can be considered a legal parking space.
0:23:06 > 0:23:09An application to drop the kerb is unlikely to succeed,
0:23:09 > 0:23:11because of the tight corner nearby.
0:23:11 > 0:23:16That leaves a future buyer to negotiate with neighbours.
0:23:17 > 0:23:21Let's see what two local estate agents think of the property.
0:23:21 > 0:23:25Remembering that they have spent over £180,000 on this property -
0:23:25 > 0:23:28what return could they generate?
0:23:28 > 0:23:33I would expect to achieve in the region of £225,000 to £230,000.
0:23:33 > 0:23:36Marketing price, you'd probably be asking around £230,000.
0:23:36 > 0:23:40£225,000 to £230,000.
0:23:40 > 0:23:45That should be a profit of between £40,000 and £50,000,
0:23:45 > 0:23:47less taxes and expenses.
0:23:47 > 0:23:50What about rental returns?
0:23:50 > 0:23:51I would expect with rental
0:23:51 > 0:23:56to achieve within the region of £875 to £900 per calendar month.
0:23:56 > 0:24:00To rent property you'd be achieving around £950 per calendar month.
0:24:00 > 0:24:02Yes, I think the values are accurate.
0:24:02 > 0:24:05That's about right. That's where we expected to be.
0:24:05 > 0:24:07- That's what we expected, really. - Yeah.
0:24:07 > 0:24:12That's a yield of 6%. No wonder they intend to sell
0:24:12 > 0:24:14and move on to the next project.
0:24:14 > 0:24:17Well, the thing is, we're happy doing it.
0:24:17 > 0:24:19We enjoy our job. So why stop?
0:24:22 > 0:24:26# Oh, Mr Porter, what shall I do?
0:24:26 > 0:24:31# I want to go to Birmingham and they're taking me on to Crewe... #
0:24:31 > 0:24:34Early in the programme there was definitely no queue in Crewe
0:24:34 > 0:24:37to purchase this two-bed terrace.
0:24:37 > 0:24:41In fact, it was bought for £35,000 after the auction, by Simon,
0:24:41 > 0:24:43when it failed to meet its reserve price.
0:24:45 > 0:24:47He runs his own property maintenance company
0:24:47 > 0:24:50and before that ran a roofing business.
0:24:50 > 0:24:54It was just as well, since this property's problems had me floored.
0:24:54 > 0:24:55Ooh!
0:24:57 > 0:25:03Simon already owns one buy-to-let, and had a tenant lined up for this house,
0:25:03 > 0:25:07which he bought as an investment for his long-term retirement fund.
0:25:07 > 0:25:10He planned to spend £6,000 renovating the property,
0:25:10 > 0:25:14including extending the shower room at the back of the house.
0:25:15 > 0:25:18Now, ten weeks later, Simon has assured us
0:25:18 > 0:25:21that we can safely step through the front door.
0:25:22 > 0:25:25Well, that gaping hole has been repaired.
0:25:25 > 0:25:29New timbers plus an air vent to fix the damp by the chimney breast.
0:25:31 > 0:25:34Replacement laminate flooring has been laid
0:25:34 > 0:25:36right through into the dining room.
0:25:38 > 0:25:42And with new doors and skirting boards, things are looking good.
0:25:43 > 0:25:45The kitchen has a new worktop,
0:25:45 > 0:25:48but what else has Simon been doing?
0:25:48 > 0:25:51It's been redecorated, plastered throughout the house.
0:25:51 > 0:25:55We've re-configured the bathroom, took down a wall
0:25:55 > 0:25:59and managed to get a bath in there instead of just the shower.
0:25:59 > 0:26:03Changed the front door, the back door and new flooring throughout.
0:26:05 > 0:26:08Simon finished the house with carpeting upstairs,
0:26:08 > 0:26:11and if there are signs of occupation
0:26:11 > 0:26:14that's because he already has a tenant.
0:26:14 > 0:26:17The timescale was eight weeks
0:26:17 > 0:26:19and we did it in 6½ weeks
0:26:19 > 0:26:22because the tenant needed to move in.
0:26:22 > 0:26:24There's been good news on the money front.
0:26:24 > 0:26:27Simon's budget of 6,000 to 7,000 proved excessive.
0:26:27 > 0:26:30Even with the boiler replacement,
0:26:30 > 0:26:32he thinks he's spent around 5,400.
0:26:33 > 0:26:37With the £35,000 he paid for the property,
0:26:37 > 0:26:41it would take his total investment to £40,400.
0:26:42 > 0:26:44We invited two local estate agents
0:26:44 > 0:26:46to come and have a look at the property.
0:26:46 > 0:26:49How much do the agents think the house is now worth?
0:26:49 > 0:26:53More than the £40,400 Simon has invested?
0:26:54 > 0:26:58In the current sales markets we'd be looking round about £60,000.
0:26:58 > 0:27:02In my opinion this property would sell for offers over £70,000.
0:27:02 > 0:27:05A bit of a disparity in valuations there.
0:27:05 > 0:27:08Based on those figures, if Simon was selling,
0:27:08 > 0:27:11there is a potential profit of between £19,600
0:27:11 > 0:27:13and £29,600
0:27:13 > 0:27:16before taxes and expenses.
0:27:16 > 0:27:18That's a bit more than I expected,
0:27:18 > 0:27:20so, yeah, I'm very pleased with that.
0:27:20 > 0:27:23Simon already has a tenant,
0:27:23 > 0:27:26so is he getting the right rent for it?
0:27:26 > 0:27:28If this property was on the rental market,
0:27:28 > 0:27:30it would fetch about £450 per calendar month.
0:27:30 > 0:27:35In my opinion this property would let for a figure of £550 per calendar month.
0:27:35 > 0:27:38That would generate a whopping 16% yield
0:27:38 > 0:27:43if your rent did increase to £550 per calendar month.
0:27:44 > 0:27:47Has it tempted Simon to get the auction catalogue out again?
0:27:47 > 0:27:49Yes, I'd go to the auction again.
0:27:49 > 0:27:53I'm looking at another one in next month's auction so,
0:27:53 > 0:27:56fingers crossed, I'll bid on that one.
0:27:56 > 0:27:58It certainly has been a success.
0:28:02 > 0:28:06Well, whether you're a complete novice or a property professional,
0:28:06 > 0:28:09there are always lessons to be learned about buying houses.
0:28:09 > 0:28:11So make sure you join us next time
0:28:11 > 0:28:13for some more auction action on Homes Under The Hammer.
0:28:13 > 0:28:15- Goodbye.- Goodbye.