0:00:02 > 0:00:04- Welcome to the show. - Despite all the doom and gloom,
0:00:04 > 0:00:07the property market is still a tempting place to invest your money.
0:00:07 > 0:00:09Yes, and if you are cautious and do your research,
0:00:09 > 0:00:13there are still bargains to be found buying your home under the hammer.
0:00:37 > 0:00:39Now, if you are looking for variety
0:00:39 > 0:00:42and good value, then the auction may be for you.
0:00:42 > 0:00:46So, here are the properties that lured our buyers on today's show.
0:00:48 > 0:00:51Property development is unpredictable but, in Kent,
0:00:51 > 0:00:52confidence seems high.
0:00:52 > 0:00:56I feel the risk of us losing money here is small or non-existent.
0:00:57 > 0:01:00And, in a Stoke three bed with huge problems, well,
0:01:00 > 0:01:03let's just say a bit of luck might help.
0:01:03 > 0:01:06I was going to say, "Touch wood," but there's none left, is there?
0:01:09 > 0:01:11These properties have been sold at auction.
0:01:11 > 0:01:14We'll find out who bought them and what they paid for them
0:01:14 > 0:01:16when they went under the hammer.
0:01:16 > 0:01:17Sold!
0:01:21 > 0:01:24We are in the Kent town of Chatham.
0:01:24 > 0:01:27This part of town is all very suburban and leafy.
0:01:27 > 0:01:30You've got a kids play area and bowling green over there.
0:01:30 > 0:01:35A school just down the road and, um, a graveyard to my left.
0:01:35 > 0:01:38Now, that will put some buyers off,
0:01:38 > 0:01:40although the way I look at it is that you've got a quiet,
0:01:40 > 0:01:44well maintained space right next door to your home.
0:01:44 > 0:01:46Because the house is just here.
0:01:46 > 0:01:53It's got three bedrooms and a guide price of 180-185,000.
0:01:53 > 0:01:59# All I want is a quiet place to live. #
0:01:59 > 0:02:00Intriguingly,
0:02:00 > 0:02:03the property lot comes with an extra little annexe building.
0:02:03 > 0:02:05But more of that later.
0:02:05 > 0:02:08I'm not expecting loads of hidden features in this one
0:02:08 > 0:02:12due to the period of the property. But look at all this space. Wow!
0:02:12 > 0:02:14Really nice, wide hallway.
0:02:14 > 0:02:18And a rather luminous green kitchen, don't you think?
0:02:18 > 0:02:20But it's a great area, it overlooks that pretty garden.
0:02:20 > 0:02:24You've got a second reception room here which of course you could knock
0:02:24 > 0:02:28these two into one and have one big kitchen, open plan breakfast room.
0:02:28 > 0:02:30Wonderful for families.
0:02:30 > 0:02:34And then you've got the sitting room at the front of the property.
0:02:34 > 0:02:38You've got to get rid of these horrible polystyrene tiles,
0:02:38 > 0:02:41get them all down, they are a fire hazard.
0:02:41 > 0:02:46But my first impressions of this property? I really, really like it.
0:02:46 > 0:02:49So far, no old world charm worth keeping.
0:02:49 > 0:02:52But the two bedrooms upstairs are also a good size.
0:02:52 > 0:02:55The bathroom and separate loo are pretty dated.
0:02:55 > 0:02:59Now, I said there were two bedrooms, but there is a third room up there.
0:02:59 > 0:03:02I've always wanted a property with a pool.
0:03:02 > 0:03:04But this isn't exactly what I had in mind.
0:03:06 > 0:03:09How is this for an added bonus?
0:03:09 > 0:03:11I bet they were CUEING up for this one.
0:03:11 > 0:03:15# I need a hot shot... #
0:03:15 > 0:03:19Well, it's worth remembering that anything inside the house
0:03:19 > 0:03:22when the hammer falls at auction is yours.
0:03:22 > 0:03:24So, that means this pool table as well.
0:03:24 > 0:03:28Although I think there is a better home for it. In the little annexe.
0:03:28 > 0:03:31Wow! This is brilliant!
0:03:31 > 0:03:36As a mum, straightaway I'm thinking, kids playroom,
0:03:36 > 0:03:38my children would love this.
0:03:38 > 0:03:40They would be getting that pool table straight into this room
0:03:40 > 0:03:42for starters.
0:03:42 > 0:03:45But this will certainly add value to a property like that.
0:03:45 > 0:03:47And of course, don't forget, you could even
0:03:47 > 0:03:51rent this out as a separate entity entirely.
0:03:51 > 0:03:54This is a decent sized plot and I'm wondering
0:03:54 > 0:03:56if you could make more of it.
0:03:56 > 0:03:59How about building a double height extension to the left,
0:03:59 > 0:04:04with the garages extending to the right where the walkway is
0:04:04 > 0:04:09and splitting the property in the middle to create a pair of semis?!
0:04:09 > 0:04:11I have seen it done before, very successfully.
0:04:11 > 0:04:15And it could be a way of increasing your return.
0:04:15 > 0:04:18Of course, it would all be down to planning.
0:04:18 > 0:04:19And whether the numbers stack up.
0:04:19 > 0:04:24All in all, I reckon for the £180-£185,000 guide price,
0:04:24 > 0:04:28there are some really interesting possibilities here.
0:04:28 > 0:04:30What does a local agent think of this property?
0:04:30 > 0:04:32It's got everything it needs.
0:04:32 > 0:04:35I don't think you need to go into the building side of things.
0:04:35 > 0:04:38I think it's more cosmetic, get it tidied up, get it nice,
0:04:38 > 0:04:39get it ready and sell it.
0:04:39 > 0:04:42I honestly believe that if it's done to a good standard,
0:04:42 > 0:04:45you could command £275,000 for the whole lot once done.
0:04:45 > 0:04:49And what if it was put on the rental market?
0:04:49 > 0:04:53I believe that you'd get between £950 and £1,000 per calendar month.
0:04:54 > 0:04:58This isn't a standard suburban three bed house.
0:04:58 > 0:05:02I think it's an exciting opportunity to do something different
0:05:02 > 0:05:04with all the added extras you have here.
0:05:04 > 0:05:10Or, if that doesn't appeal, refurb and sell on for a decent profit.
0:05:10 > 0:05:12Let's see who went for it at the auction.
0:05:12 > 0:05:15Lot, 13, detached house for improvement.
0:05:15 > 0:05:18Start me where you will, 170 will get it on the way.
0:05:18 > 0:05:23£170,000 bid on my right. I have 170, I have 172. I'm obliged.
0:05:23 > 0:05:30172. And five. 175, and seven. And seven. 178, I'm obliged.
0:05:30 > 0:05:36178 and nine. 179, thank you. 180, in the front. Fresh place.
0:05:36 > 0:05:41181 sitting down, 182. 182 and three.
0:05:41 > 0:05:44And five. 187. 190.
0:05:45 > 0:05:53192, thank you, ladies. 195. 197 I am bid. £200,000, may I say?
0:05:53 > 0:05:58198. 199 for the ladies if you like, 199 may I say?
0:05:58 > 0:06:05First-time then at 198. 199 I'm bid. 200 if you like. 200 I've got.
0:06:05 > 0:06:12At £200,000 I've got for the first time. 200,000 for the second time.
0:06:12 > 0:06:15Third and final time to the gentleman at the back for the third
0:06:15 > 0:06:19and final time at £200,000, you've got it, sir. Well done.
0:06:19 > 0:06:23And that final bid of £200,000 was from Steve on the left.
0:06:23 > 0:06:26And his business partner, Andrew.
0:06:26 > 0:06:29The pair have been working together developing property
0:06:29 > 0:06:30for about a year now.
0:06:30 > 0:06:34With Andrew the builder, on the right, originally from Poland
0:06:34 > 0:06:37and Steve the spreadsheet and money man.
0:06:37 > 0:06:39Steve and Andrew, congratulations.
0:06:39 > 0:06:41So, how did you guys end up in Chatham?
0:06:41 > 0:06:43Well, we came here via the auction room.
0:06:43 > 0:06:45Looking for a house to do up
0:06:45 > 0:06:47and we were struggling with the estate agents.
0:06:47 > 0:06:49So, we thought we'd look at the auction route.
0:06:49 > 0:06:51What I love about it of course is that little annexe.
0:06:51 > 0:06:53That is like a real bonus to this property.
0:06:53 > 0:06:55Yeah, that's fascinating
0:06:55 > 0:06:58because in the auction catalogue there was no sign behind the hedge
0:06:58 > 0:07:00of either the garage on one end of the house or the link
0:07:00 > 0:07:03between the pitched roof annexe and the main house.
0:07:03 > 0:07:05We really think we can do something with that.
0:07:05 > 0:07:07I think you have really got to convert that into some
0:07:07 > 0:07:11sort of living space. Granny annexe, Nanny annexe, playroom.
0:07:11 > 0:07:14What about the sort of uncovered... Well, it is covered, the walkway,
0:07:14 > 0:07:15but it's very open to the elements.
0:07:15 > 0:07:18Would you try and make that an integral part of the property?
0:07:18 > 0:07:21What we'd really like to do is turn the front door to face the front.
0:07:21 > 0:07:25So, put a new cavity wall across the front of that walkway,
0:07:25 > 0:07:27put the front door onto it and then use that as a corridor to link
0:07:27 > 0:07:29the main house and the annexe together.
0:07:29 > 0:07:31I'm focused on talking about the annexe,
0:07:31 > 0:07:34what about the main centre of the property,
0:07:34 > 0:07:36what are you going to do to turn it around?
0:07:36 > 0:07:38The rooms are going to stay as they are.
0:07:38 > 0:07:39Starting from the top floor.
0:07:39 > 0:07:42We will have two double bedrooms and one single bedroom.
0:07:42 > 0:07:45The bathroom and the toilet are going to be changed.
0:07:45 > 0:07:48Where you have a dividing wall, that's going to come down and we're
0:07:48 > 0:07:51going to move the main entrance wall into the bathroom forward.
0:07:51 > 0:07:53So, you will have one big toilet/bathroom,
0:07:53 > 0:07:55family bathroom upstairs.
0:07:55 > 0:07:57We find that there is no need to put an extra en-suite.
0:07:57 > 0:08:00Although we had an idea to make an en-suite but probably
0:08:00 > 0:08:04because it's a two-bedroom... I mean, 2+1, three-bedroom house.
0:08:04 > 0:08:07- There is no need for an extra bathroom upstairs.- Hold on a minute.
0:08:07 > 0:08:10- It's a two-bedroom and one pool room.- Yes, there is that.
0:08:10 > 0:08:12I need to ask you this question. What is the budget?
0:08:12 > 0:08:18The budget here is to try and get the house done for about £30,000.
0:08:18 > 0:08:23- OK, and your timescale? - Timescale, typically, what?
0:08:23 > 0:08:25I think it will be between eight to ten weeks.
0:08:25 > 0:08:29What would your top valuation of this property be, once it's
0:08:29 > 0:08:31done up, looking fabulous.
0:08:31 > 0:08:35- We reckon we can achieve a price between 300 and £320,000.- Really?
0:08:35 > 0:08:37- Yes.- Wow.- Without doing any extension work.
0:08:37 > 0:08:39And how do you feel about that?
0:08:39 > 0:08:43I feel the risk of us losing money here is small or non-existent.
0:08:43 > 0:08:47And so I am seeing anything 260 and upwards would be
0:08:47 > 0:08:49a result in the right direction.
0:08:49 > 0:08:53Guys, good luck with this project. I can't wait to see how it turns out.
0:08:53 > 0:08:55Well, we have our fingers crossed, that's the main thing.
0:08:55 > 0:08:58- Lovely to meet you, good luck.- Thanks.
0:08:58 > 0:09:03Well, Steve and Andrew will make this place work, I'm sure of it.
0:09:03 > 0:09:06But will they tip the value over 300 grand?
0:09:06 > 0:09:10There is only one way to find out. Join us later in the show.
0:09:13 > 0:09:17We are in Bradeley, Stoke-on-Trent.
0:09:17 > 0:09:21So, what am I here to see? Well, it's a three bed mid-terrace.
0:09:21 > 0:09:25In this fairly attractive row of similar properties.
0:09:25 > 0:09:30I like the brick built frontage. And from the outside, this is it.
0:09:30 > 0:09:34Looks pretty good. The guide price of £40,000 plus.
0:09:34 > 0:09:37Hm. Sounds suspiciously low.
0:09:38 > 0:09:42So, let's investigate what we have.
0:09:42 > 0:09:44The corridor here, I mean, I don't like that as a layout.
0:09:44 > 0:09:47It feels a bit claustrophobic the moment you come through
0:09:47 > 0:09:48the front door.
0:09:48 > 0:09:50Not even going to go there for a second.
0:09:50 > 0:09:54But through here into your main sort of living area
0:09:54 > 0:09:56and this is actually quite a nice space.
0:09:56 > 0:09:58It's got this dual aspect which is always good.
0:10:00 > 0:10:05Hm. We'll come back to that. Onwards through here
0:10:05 > 0:10:09is your kitchen and I think onwards through to a bathroom.
0:10:09 > 0:10:12I'm just going to go upstairs.
0:10:14 > 0:10:18Well, up here, the good news is, there is a bathroom and a sink.
0:10:18 > 0:10:21The bad news is, there is no loo. So, that's not ideal.
0:10:21 > 0:10:24I think you've also stolen space from the bedrooms
0:10:24 > 0:10:27because it does actually feel a little bit cramped.
0:10:27 > 0:10:32The good news again though is that it seems that the majority,
0:10:32 > 0:10:37if not all of the walls are actually stud partition.
0:10:37 > 0:10:40Not that difficult to take down and rejig the layout up here.
0:10:40 > 0:10:43And I think that with a bit of careful thought, you could
0:10:43 > 0:10:45make it much better than it is.
0:10:45 > 0:10:50OK, nothing else for it. Back downstairs.
0:10:50 > 0:10:52Well, I can't get away with it any longer, it is
0:10:52 > 0:10:57time to address the elephant in the room, as they say.
0:10:57 > 0:11:02The obvious thing with this property which is clearly pretty bad.
0:11:02 > 0:11:06This is one of the most incredible examples of dry rot
0:11:06 > 0:11:09I have ever seen in a house.
0:11:09 > 0:11:13It's caused by water and a combination of that
0:11:13 > 0:11:15and an enclosed space, as in underneath these floorboards.
0:11:15 > 0:11:17The problem with dry rot is, those tendrils,
0:11:17 > 0:11:20they stretch everywhere, they go through wood,
0:11:20 > 0:11:24they go through concrete, they are a disaster, as you can see.
0:11:24 > 0:11:25It's expensive to put right
0:11:25 > 0:11:28and it needs to be done properly otherwise it comes back.
0:11:28 > 0:11:33# My world is crumbling My world is crumbling. #
0:11:33 > 0:11:36I'd get a survey done before I even thought of buying this
0:11:36 > 0:11:40property to find out the extent of the infestation.
0:11:40 > 0:11:42Maybe outside will cheer me up.
0:11:43 > 0:11:46Well, there is a good sized back garden to the property
0:11:46 > 0:11:48and it would seem even bigger
0:11:48 > 0:11:52if you got rid of or trimmed back at least that privet hedge.
0:11:52 > 0:11:56But another bit of really good news is at the back here there is
0:11:56 > 0:11:58actually a rear access.
0:11:58 > 0:12:01So, pretty much like other people have done,
0:12:01 > 0:12:04put a garage in here, gets your car off the road.
0:12:04 > 0:12:06Yeah, a nice additional bonus.
0:12:08 > 0:12:12What will a local estate agent make of this crumbly terrace?
0:12:12 > 0:12:17In a nice order, this could be somewhere around £85-£90,000.
0:12:17 > 0:12:22OK, so that is the potential value, what could the rental income be?
0:12:22 > 0:12:25In a good condition, I'd place this on to the rental market
0:12:25 > 0:12:29somewhere between £400 and £425 per calendar month.
0:12:32 > 0:12:34Well, it's sometimes said that mid-terraced
0:12:34 > 0:12:37properties are a safe bet.
0:12:37 > 0:12:39Since as long as the ones on either side are all right,
0:12:39 > 0:12:41how bad can the one in the middle be?
0:12:41 > 0:12:46Well, this is a case in point of that theory being complete rubbish.
0:12:46 > 0:12:51Because it is horrendous. As we've seen.
0:12:51 > 0:12:54Still, as long as you get it at the right price,
0:12:54 > 0:12:56it could still be a good investment.
0:12:56 > 0:12:59Let's see who went for it under the hammer.
0:12:59 > 0:13:04Lot 53. A large mid-townhouse, first floor bathroom. What's this?
0:13:04 > 0:13:0635 to start me on this one.
0:13:08 > 0:13:1435 bid, thank you. At £35,000. 35,000. I'll say 38. Can we say 38?
0:13:14 > 0:13:1938 bid. £38,000. 40?
0:13:19 > 0:13:22A ding dong battle got underway for this property
0:13:22 > 0:13:28and we rejoin the auction with the bid standing at 45,000.
0:13:28 > 0:13:33New bidder, 45. 45 and a half. 46.
0:13:33 > 0:13:3846 and a half. 47. 47 and a half.
0:13:38 > 0:13:4148. 48.
0:13:41 > 0:13:4349. 50.
0:13:43 > 0:13:4650. No?
0:13:46 > 0:13:51At £50,000, standing there, then. At 50,000. 51 anywhere else?
0:13:53 > 0:14:00At £50,000 then for the first time. New bidder, 51. 52?
0:14:03 > 0:14:1052. 53. No? 53,000, gentleman in the blue T-shirt.
0:14:10 > 0:14:12Just wave again so there's no mistake. Thank you.
0:14:12 > 0:14:15£53,000 then all done now.
0:14:15 > 0:14:19At £53,000 once, £53,000 twice.
0:14:19 > 0:14:26Third and last time at £53,000, your lot, sir, well done.
0:14:26 > 0:14:32That final bid of £53,000 was made by Clint. He and his wife Kerry own
0:14:32 > 0:14:34a stud farm for Welsh cob horses.
0:14:34 > 0:14:37And they have just finished renovation work on their own home.
0:14:37 > 0:14:39I met the couple to find out more.
0:14:41 > 0:14:44- Clint, Kerry. Great to meet you both.- And you.- Thank you.
0:14:44 > 0:14:47- Please tell me you looked at this house before you bought it?- No.- No.
0:14:47 > 0:14:49Argh!
0:14:51 > 0:14:53The typical mistake.
0:14:54 > 0:14:57Right, why?
0:14:57 > 0:15:01We decided on the way that we were going to pay about 50,000.
0:15:01 > 0:15:04I was working under the assumption that I needed to
0:15:04 > 0:15:09- spend about 10 on it, resell it for about 75, not a bad profit.- Oh, no!
0:15:09 > 0:15:14- The actual auction, I stopped on our limit of 50,000.- Right.
0:15:14 > 0:15:18So, I just put my hand at 51.
0:15:18 > 0:15:21I then got a kick off me wife to say, "What are you doing?"
0:15:21 > 0:15:25Somebody went 52, I went 53 and we bought it.
0:15:25 > 0:15:27After then I thought to myself, "That was a good price"
0:15:27 > 0:15:30And then I thought, "Why was it a good price?"
0:15:30 > 0:15:33Now, it's bad enough that they didn't view the property
0:15:33 > 0:15:37beforehand, but guess what else they didn't do? Yep, that's right.
0:15:37 > 0:15:39They didn't read the legal pack.
0:15:39 > 0:15:43If they had, they would have spotted information that said they had to
0:15:43 > 0:15:49pay the seller's fees, upping their total spend thus far to £56,000.
0:15:49 > 0:15:52And, by the way, the pack also mentioned the dry rot.
0:15:52 > 0:15:55So, what's the plan to deal with that?
0:15:55 > 0:15:57Well, everything is going to be ripped out.
0:15:57 > 0:15:59All the wood is coming out, obviously.
0:15:59 > 0:16:05Treat the walls and the floors with the fungal disinfectant, basically.
0:16:05 > 0:16:07New stairs going in, so that will eliminate the dry rot.
0:16:07 > 0:16:11We've looked up, it's only travelled halfway up the stairs.
0:16:11 > 0:16:13So, there is no dry rot upstairs.
0:16:13 > 0:16:17Clint and Kerry intend to tackle the dry rot themselves.
0:16:17 > 0:16:19On a tight budget, fair enough.
0:16:19 > 0:16:22Though I would always recommend getting in the experts
0:16:22 > 0:16:25because, if you don't get it right, it will return.
0:16:25 > 0:16:27If you do decide to treat it yourself,
0:16:27 > 0:16:31bear in mind that you should go past where you think the dry rot ends
0:16:31 > 0:16:35because it travels and never replace boards or skirting or whatever
0:16:35 > 0:16:37with untreated wood.
0:16:37 > 0:16:40Otherwise you will just be inviting trouble.
0:16:40 > 0:16:43And of course, you need to find the source of the damp that
0:16:43 > 0:16:45caused the problem in the first place.
0:16:45 > 0:16:49You are now the proud owners. What are you going to do?
0:16:49 > 0:16:50Just basically refurbish the lot.
0:16:50 > 0:16:52We are going to be knocking some walls out,
0:16:52 > 0:16:55extending the kitchen, extending the rooms upstairs.
0:16:55 > 0:16:59How much extra is it going to cost you to put right all
0:16:59 > 0:17:02- the problems which you didn't know about?- No extra, really.
0:17:02 > 0:17:05- What you do mean, no extra?- We were planning on spending 10,000.
0:17:05 > 0:17:09- Right.- So, whether it meant 10,000, we were just going to come in
0:17:09 > 0:17:12and we'd have better fixings, you know,
0:17:12 > 0:17:17the finishing product or 10,000, meaning the work we've got to do.
0:17:17 > 0:17:19And we're going to be doing the work ourselves.
0:17:19 > 0:17:22So, we don't need to get anybody else in.
0:17:22 > 0:17:26- You'll then potentially make some money, won't you?- Yeah, yeah.
0:17:26 > 0:17:31It stands at 56 now. If we spend 10,000 on it, that's 66.
0:17:31 > 0:17:35And obviously then depending on what it's valued at when it's finished.
0:17:35 > 0:17:37We plan on having it done in about 10 weeks.
0:17:37 > 0:17:40I was going to say, "touch wood," but there's none left, is there?
0:17:40 > 0:17:44- Congratulations. Good luck with it. - Thank you very much.- Thank you.
0:17:45 > 0:17:47Well, I think Kerry and Clint
0:17:47 > 0:17:51recognise that they did break every single rule in
0:17:51 > 0:17:55the book buying this place, but you've got to love their attitude.
0:17:55 > 0:17:59And it seems like they have an action plan to sort it out.
0:17:59 > 0:18:03There is only one big question for Kerry and Clint.
0:18:03 > 0:18:04Are you feeling lucky?
0:18:08 > 0:18:11Well, time has simply flown by.
0:18:11 > 0:18:15Have our buyers managed to make progress with their properties?
0:18:15 > 0:18:18Let's go back and check out what's happened.
0:18:19 > 0:18:21We are now returning to the Kent town of Chatham,
0:18:21 > 0:18:25where earlier in the programme this three bedroomed detached
0:18:25 > 0:18:30property adjacent to a graveyard was bought for £200,000 by
0:18:30 > 0:18:33Steve, on the left, and Andrew, who are based in Surrey.
0:18:35 > 0:18:38Andrew is originally from Poland and he does the building work,
0:18:38 > 0:18:42while Steve is an ex-lawyer, looking after the finances.
0:18:42 > 0:18:47They saw great potential for the extra building on the site.
0:18:47 > 0:18:49Pretty much the rooms are going to stay as they are.
0:18:49 > 0:18:50Starting from the top floor.
0:18:50 > 0:18:53We will have two double bedrooms, one single bedroom.
0:18:53 > 0:18:56Hold on a minute, it's a two bedroom and one pool room.
0:18:56 > 0:18:57Yes, there is that.
0:18:57 > 0:19:00They were going to sell and hope to pocket a profit
0:19:00 > 0:19:05and they hope their budget of 30,000 wouldn't leave them SNOOKERED.
0:19:05 > 0:19:08They set a timescale of about eight to ten weeks.
0:19:10 > 0:19:14Now it's eight months later and next to the quietest part of town,
0:19:14 > 0:19:17there is now definitely something to shout about.
0:19:31 > 0:19:34The property has replacement windows throughout,
0:19:34 > 0:19:37but the living room is only the beginning.
0:19:40 > 0:19:44Because the former dining room and kitchen have been knocked into one.
0:19:46 > 0:19:50The utility room will be placed in what used to be the store shed,
0:19:50 > 0:19:52while the annexe is going to be linked to the main house
0:19:52 > 0:19:56by creating a corridor with a parallel wall.
0:19:56 > 0:19:58I thought that little annexe was intriguing and offered
0:19:58 > 0:20:02tonnes of possibilities, so what did they do with it in the end?
0:20:02 > 0:20:05We've gone for these high-level windows instead of
0:20:05 > 0:20:07the previous single-glazed metal windows,
0:20:07 > 0:20:11and we've put a good cloakroom bathroom over on this side.
0:20:11 > 0:20:13So, whoever buys this house can
0:20:13 > 0:20:16either use it as a bedroom or as another living room.
0:20:16 > 0:20:19I think it's a really elegant and flexible solution.
0:20:22 > 0:20:24A terrace with French windows is underway
0:20:24 > 0:20:27and the other foundations are the beginning of a garden room,
0:20:27 > 0:20:30which they have decided is a cost effective addition.
0:20:32 > 0:20:35Back inside the main house, the former bathroom and loo
0:20:35 > 0:20:39have been knocked into one well-equipped family bathroom.
0:20:39 > 0:20:41The pool table's also gone
0:20:41 > 0:20:47and the three bedrooms have been tastefully redecorated.
0:20:47 > 0:20:49There's still the garden to landscape, and
0:20:49 > 0:20:52with the additional work on the extension,
0:20:52 > 0:20:54and with the high-level finish kitchen,
0:20:54 > 0:20:57I wonder what effect all of that has had
0:20:57 > 0:20:59on their original £30,000 budget.
0:20:59 > 0:21:03We spent around £40,000 - perhaps a little above in the end,
0:21:03 > 0:21:06but we're still very comfortable that what we've spent makes good
0:21:06 > 0:21:09sense for this particular house.
0:21:09 > 0:21:11With the £200,000 they spent at auction,
0:21:11 > 0:21:15it takes the total investment to £240,000.
0:21:15 > 0:21:18And have the plans remained the same?
0:21:18 > 0:21:20Yes, the plan is to sell the house.
0:21:20 > 0:21:23Agents, from time to time, like to try to persuade us to rent them,
0:21:23 > 0:21:25but our business is selling them
0:21:25 > 0:21:28and moving on to renovate the next.
0:21:28 > 0:21:32What will these two local estate agents make of the renovation work?
0:21:32 > 0:21:35Now, I know they don't want to let the house out but,
0:21:35 > 0:21:38out of interest, how much could this fetch on the rental market?
0:21:38 > 0:21:42I predict a rental income of £1,400 per calendar month.
0:21:42 > 0:21:43I think if the property was rented out,
0:21:43 > 0:21:47they would achieve around £1,500 per calendar month.
0:21:47 > 0:21:49Well, that's an impressive yield of 7%.
0:21:49 > 0:21:52And what about that all-important resale figure?
0:21:52 > 0:21:55Do the agents think the property would be worth
0:21:55 > 0:21:58more than the £240,000 that Andrew and Steve have invested here?
0:21:58 > 0:22:02I would value this property for £300,000-£330,000.
0:22:02 > 0:22:07We'd aim to sell this property for £365,000.
0:22:07 > 0:22:09Well, a real disparity in the valuations there.
0:22:09 > 0:22:12One valuation would give us a £60,000 profit,
0:22:12 > 0:22:16while the other would produce a whacking £125,000.
0:22:16 > 0:22:19Minus all the usual taxes and expenses.
0:22:19 > 0:22:22£365,000 is a very good achievement,
0:22:22 > 0:22:26but I think the £350,000 mark is where we're going to land.
0:22:26 > 0:22:28This has been the fifth property
0:22:28 > 0:22:30that Andrew and Steve have refurbished.
0:22:30 > 0:22:32Their development business is going well.
0:22:32 > 0:22:34So, what's next?
0:22:34 > 0:22:37We've got another house we're working on already,
0:22:37 > 0:22:39which is an even bigger project than this one.
0:22:39 > 0:22:42Potentially including some new development in the garden as well.
0:22:42 > 0:22:46But at the moment, unless Andy has different ideas, we carry on.
0:22:50 > 0:22:52So, from a renovation with hardly any problems,
0:22:52 > 0:22:55to one here in Bradeley, Stoke with...
0:22:55 > 0:22:57Well, more than a few.
0:23:00 > 0:23:04Clint and his wife, Kerry, paid £53,000.
0:23:04 > 0:23:08Clint was named after the Dirty Harry star, Clint Eastwood,
0:23:08 > 0:23:11but I'm afraid he didn't "Make my day" when we met.
0:23:11 > 0:23:13Please tell me you looked at this house before you bought it.
0:23:13 > 0:23:14BOTH: Nope.
0:23:14 > 0:23:16Oh!
0:23:16 > 0:23:18THEY LAUGH
0:23:18 > 0:23:21Hmm. It's no laughing matter because this house was riddled with dry rot
0:23:21 > 0:23:23on the ground floor.
0:23:23 > 0:23:24And I could see it costing Clint
0:23:24 > 0:23:26a fistful of dollars to put it right.
0:23:29 > 0:23:30They both breed horses
0:23:30 > 0:23:33and Clint rebuilds horse boxes,
0:23:33 > 0:23:36so his practical skills are going to come in handy.
0:23:36 > 0:23:38They set a budget of £10,000
0:23:38 > 0:23:42and reckoned it would take a couple of months.
0:23:42 > 0:23:43MUSIC: Turn The Tide by Johnny Hates Jazz
0:23:43 > 0:23:45Well, it's now five months later
0:23:45 > 0:23:48and we've returned to check on the progress.
0:23:49 > 0:23:51The wall between the hall and the living room
0:23:51 > 0:23:54has been removed.
0:23:54 > 0:23:56They waved goodbye to the rotten floor,
0:23:56 > 0:23:59replacing it with these rippling tiles,
0:23:59 > 0:24:01a bit like the tide on a beach.
0:24:02 > 0:24:06# I know we can turn the tide
0:24:06 > 0:24:09# Together we can change the way things are... #
0:24:12 > 0:24:15And the house has washed up lots of other treasures.
0:24:24 > 0:24:26With so much dry rot to tackle,
0:24:26 > 0:24:29it meant the floor could be completely opened up.
0:24:31 > 0:24:32OK, what we've done in here is,
0:24:32 > 0:24:34we've taken down the dividing wall.
0:24:34 > 0:24:36Which has taken away the dingy corridor
0:24:36 > 0:24:39that was leading in from the front door
0:24:39 > 0:24:41and has given us a lovely open space.
0:24:43 > 0:24:46Removing the infected timbers was only half the story.
0:24:46 > 0:24:49The house was stripped right back and the walls were treated
0:24:49 > 0:24:53with a fungicidal wash to prevent any future problems.
0:24:53 > 0:24:58Only then, could the impressive lay out changes begin.
0:24:58 > 0:25:00OK, what we've done is we've taken a wall out behind us,
0:25:00 > 0:25:03to open up the kitchen up to give us the kitchen dining room now.
0:25:03 > 0:25:05An open flow.
0:25:05 > 0:25:07There was two walls at the end there,
0:25:07 > 0:25:09we've taken the collage wall out
0:25:09 > 0:25:10and the downstairs toilet out.
0:25:10 > 0:25:14We've had to put the toilet upstairs into the bathroom.
0:25:14 > 0:25:16It was the smallest bathroom I've seen,
0:25:16 > 0:25:19so that meant us moving the dividing wall.
0:25:19 > 0:25:22It made one of the bedrooms a little bit smaller,
0:25:22 > 0:25:24but we've got a nice big bathroom...
0:25:24 > 0:25:26A bigger bathroom now.
0:25:26 > 0:25:28With help from qualified experts,
0:25:28 > 0:25:29the house now has new central heating,
0:25:29 > 0:25:33and there's new lighting and the plumbing has been changed.
0:25:33 > 0:25:35It was hard work cos we've both got full time jobs,
0:25:35 > 0:25:38so it was a case of coming down here in the evenings
0:25:38 > 0:25:40and at weekends.
0:25:40 > 0:25:43In total, it's taken us, with the hours,
0:25:43 > 0:25:47counting up the hours we've actually spent on the house, 12 weeks.
0:25:47 > 0:25:50I wonder what effect it had on their budget.
0:25:50 > 0:25:52We had a budget of £10,000.
0:25:52 > 0:25:55As we got further on through the project,
0:25:55 > 0:25:57we upped the standard a bit, didn't we?
0:25:57 > 0:26:00Which meant the glass balustrade was coming in,
0:26:00 > 0:26:04the shinier tiles, we were going to have, so, yeah.
0:26:04 > 0:26:07So, we spent £12,000 so, yeah, we're really chuffed with it, yeah.
0:26:07 > 0:26:09Clint and Kerry, if you remember,
0:26:09 > 0:26:12didn't read the legal pack and the seller's fees cost them £3,000
0:26:12 > 0:26:16on top of their bid, bringing the auction total to £56,000.
0:26:17 > 0:26:21I'm really not surprised they went over that £10,000 budget
0:26:21 > 0:26:25but that brings their total spend now to £68,000.
0:26:27 > 0:26:30We ask two local estate agents to come along and give their opinions.
0:26:30 > 0:26:34I'm worried they're almost at the price they were looking to sell for.
0:26:34 > 0:26:37Have they done enough to take it to a higher value?
0:26:37 > 0:26:40Much improved from the last time I was in the property.
0:26:40 > 0:26:41Nice new kitchen in there.
0:26:41 > 0:26:43Nice new bathroom and fitments.
0:26:43 > 0:26:46My first impressions were that the vendors of the property have
0:26:46 > 0:26:49spent a lot of time on the attention to detail.
0:26:49 > 0:26:51With unique flooring, it's quite a selling point.
0:26:51 > 0:26:53Well, the plan has always been to sell.
0:26:53 > 0:26:56But how much rental income could the property generate,
0:26:56 > 0:26:58if Clint and Kerry did have a change of plan?
0:26:58 > 0:27:02The rental value would be £495 per calendar month.
0:27:02 > 0:27:04If I was going to place this on the rental market,
0:27:04 > 0:27:08I'd be asking somewhere around £500 per calendar month.
0:27:08 > 0:27:11And that's a yield of around 9%. Not a bad return.
0:27:11 > 0:27:14How about that all important value on the resale market?
0:27:14 > 0:27:17Will they get their money back?
0:27:17 > 0:27:19They've invested £68,000.
0:27:19 > 0:27:23Will they make their target profit of around £10,000?
0:27:23 > 0:27:25Given the level of finish and detail on the property,
0:27:25 > 0:27:28I'd place this on the market for £94,950.
0:27:28 > 0:27:31If I was in the owner's shoes, at the moment,
0:27:31 > 0:27:34I'd be looking to get this back on the market and hopefully achieve
0:27:34 > 0:27:36somewhere around £100,000.
0:27:36 > 0:27:37Whoa! A result!
0:27:37 > 0:27:40That would mean a possible profit
0:27:40 > 0:27:42of around £27,000-£32,000
0:27:42 > 0:27:44before taxes and expenses.
0:27:44 > 0:27:48In fact, the couple have already had their own valuation done
0:27:48 > 0:27:52and they're going to put it on the market for around £110,000.
0:27:52 > 0:27:54Despite all the trials and tribulations,
0:27:54 > 0:27:57will they do another property?
0:27:57 > 0:27:59Yeah, well, hopefully we're going to sell this
0:27:59 > 0:28:01and get another one straight away.
0:28:05 > 0:28:09Well, whether it's a bungalow, a mansion or a piece of land.
0:28:09 > 0:28:12We'll be here to see what happens to it on Homes Under The Hammer.
0:28:12 > 0:28:14So, make sure you join us next time.
0:28:14 > 0:28:16- Goodbye for now.- Goodbye.