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Martin and I never cease to be amazed. | 0:00:02 | 0:00:03 | |
Since we started making this programme, | 0:00:03 | 0:00:05 | |
we have seen hundreds of people take the plunge and buy at auction. | 0:00:05 | 0:00:08 | |
Yes, and we love bringing you the stories behind them, and there's more today. | 0:00:08 | 0:00:14 | |
But it can be a bumpy ride, so fasten your seatbelts as we head for the auctions. | 0:00:14 | 0:00:19 | |
This programme isn't just about bricks and mortar. It's about real people with a tale to tell. | 0:00:44 | 0:00:49 | |
But we never quite know how their stories will turn out. | 0:00:49 | 0:00:52 | |
No. So will today's properties be a nightmare or a dream? | 0:00:52 | 0:00:57 | |
These are the ones we followed to the auction. | 0:00:57 | 0:01:00 | |
This far from standard Stoke-on-Trent terrace | 0:01:01 | 0:01:04 | |
makes me think big. | 0:01:04 | 0:01:06 | |
The moment you walk in, it just has that extra element of grandeur. | 0:01:06 | 0:01:10 | |
There's a lot of property for your money in Ramsgate, Kent, but don't expect to park nearby. | 0:01:11 | 0:01:17 | |
Sorry - you'll just have to pay at the meter. | 0:01:17 | 0:01:20 | |
And in South Wales, when it comes to this mid-terrace, | 0:01:22 | 0:01:25 | |
it's Tigger time! | 0:01:25 | 0:01:27 | |
You can kind of bounce off the walls in this house, literally! | 0:01:27 | 0:01:31 | |
All of these properties went to auction. | 0:01:33 | 0:01:35 | |
We'll find out who bought them and what they paid for them when they went under the hammer. | 0:01:35 | 0:01:39 | |
Yours, sir. | 0:01:40 | 0:01:41 | |
I'm visiting Stoke-on-Trent, also known as the Potteries, because of | 0:01:44 | 0:01:48 | |
its connection with the ceramics industry. | 0:01:48 | 0:01:51 | |
# Take a little clay Put it on the wheel | 0:01:51 | 0:01:53 | |
# Make it in the shape you want it in... # | 0:01:53 | 0:01:56 | |
This area of Stoke is called Smallthorne, | 0:01:58 | 0:02:01 | |
a former mining community, although there are few signs of the industry left. | 0:02:01 | 0:02:06 | |
It's about three miles from Stoke city centre, | 0:02:06 | 0:02:09 | |
and the property I'm here to see is just round the corner. | 0:02:09 | 0:02:12 | |
It's on a street of terraces, | 0:02:12 | 0:02:14 | |
all built at the beginning of the 1900s. | 0:02:14 | 0:02:16 | |
And here it is - three-bedroom end-of-terrace. | 0:02:18 | 0:02:21 | |
Had a guide price of £35,000, and it looks like a pretty substantial property for that. | 0:02:21 | 0:02:27 | |
That's interesting. This house seems to be much bigger | 0:02:30 | 0:02:34 | |
than the other ones on the street, and my guess is that maybe this was the foreman's house | 0:02:34 | 0:02:39 | |
for the local colliery, because the moment you walk in, | 0:02:39 | 0:02:43 | |
it just has that extra element of grandeur, | 0:02:43 | 0:02:45 | |
which maybe some of the other terraces on this street haven't got. | 0:02:45 | 0:02:49 | |
This big archway, stuff like that. | 0:02:49 | 0:02:51 | |
A front reception room. An interesting-looking fireplace there. | 0:02:51 | 0:02:54 | |
Lots of light coming in, because you are this end-of-terrace, which is really nice. | 0:02:54 | 0:02:59 | |
And then through into a central living room - again, | 0:02:59 | 0:03:02 | |
with a fireplace, which is good, and an odd place for the stairs. It actually | 0:03:02 | 0:03:06 | |
works OK, but it's not something I've seen that often. | 0:03:06 | 0:03:09 | |
Staircase here leading to the bedrooms. | 0:03:09 | 0:03:12 | |
Let's see if it continues in this light. | 0:03:12 | 0:03:14 | |
A bit of cosmetic work and redecoration is needed | 0:03:14 | 0:03:19 | |
to bring this place up to date. But it seems to be in reasonable condition | 0:03:19 | 0:03:23 | |
so far, and it's certainly spacious. | 0:03:23 | 0:03:25 | |
Well, the kitchen is a good size, | 0:03:26 | 0:03:28 | |
but it obviously needs a bit of tender loving care. | 0:03:28 | 0:03:31 | |
Well, actually ripping out and starting again. But at least | 0:03:31 | 0:03:34 | |
you've got the space to play with. But then a very traditional design here - | 0:03:34 | 0:03:37 | |
through the kitchen, a little bit of a utility area, which has got | 0:03:37 | 0:03:41 | |
the hot water cylinder, and you come to the only bathroom. It's the loo, | 0:03:41 | 0:03:45 | |
it's the bathroom - it's not ideal. | 0:03:45 | 0:03:47 | |
A lot of the terraces round here will probably have this, | 0:03:47 | 0:03:49 | |
but I wonder if there's a better place for it to be. | 0:03:49 | 0:03:52 | |
Let's check upstairs. | 0:03:52 | 0:03:54 | |
Downstairs bathrooms may be quite common in older terraces, but they | 0:03:54 | 0:03:59 | |
can definitely put off some buyers. After all, who wants to go trudging | 0:03:59 | 0:04:03 | |
downstairs in the middle of the night? | 0:04:03 | 0:04:04 | |
# Move it up Move it | 0:04:04 | 0:04:06 | |
# Move it up Move it up... # | 0:04:06 | 0:04:08 | |
So let's hope there's a place of more convenience.... | 0:04:08 | 0:04:11 | |
So up here - front bedroom there. That might be one option. | 0:04:13 | 0:04:17 | |
But I think a much more viable place for the bathroom is here, | 0:04:17 | 0:04:19 | |
in this middle bedroom. It's big enough, I think, to divide, literally, in two. | 0:04:19 | 0:04:25 | |
You've got two windows, so each room would have its own, | 0:04:25 | 0:04:28 | |
and then make this area here | 0:04:28 | 0:04:30 | |
the bathroom. The reason why I think that's even more | 0:04:30 | 0:04:34 | |
of a positive thing to do is the fact that this is an exterior wall. | 0:04:34 | 0:04:39 | |
It comes to about here. The rest of this is the rest of the house, but | 0:04:39 | 0:04:42 | |
down there is the courtyard. So that's the exterior wall, so you've | 0:04:42 | 0:04:46 | |
got somewhere where you can very easily get out your soil pipes, | 0:04:46 | 0:04:49 | |
your drainage, etc. So that's something you need to consider. | 0:04:49 | 0:04:51 | |
It would get the bathroom upstairs, you'd have more space in the kitchen, | 0:04:51 | 0:04:55 | |
and I think it would be a very good thing to do. | 0:04:55 | 0:04:57 | |
If you did divide the middle bedroom, you'd still be left with | 0:04:59 | 0:05:02 | |
two good-sized doubles. | 0:05:02 | 0:05:04 | |
Plus, there's the third single bedroom at the back. | 0:05:05 | 0:05:08 | |
So, what does a local estate agent think of this house that went | 0:05:09 | 0:05:12 | |
to auction guided at £35,000-plus? | 0:05:12 | 0:05:16 | |
Is moving the bathroom a good idea? | 0:05:16 | 0:05:19 | |
I would say putting the bathroom upstairs | 0:05:20 | 0:05:22 | |
for this size of house would add value. | 0:05:22 | 0:05:25 | |
Particularly due to the fact you can retain | 0:05:25 | 0:05:28 | |
the three bedrooms, as opposed to losing a bedroom. It also gives the opportunity | 0:05:28 | 0:05:33 | |
for a utility downstairs, so that would be the way to go. | 0:05:33 | 0:05:36 | |
How much value would an upstairs bathroom add? | 0:05:38 | 0:05:41 | |
Moving the bathroom upstairs alone, without the refurbishments, would add at least | 0:05:41 | 0:05:46 | |
£5,000, in my opinion. | 0:05:46 | 0:05:49 | |
Is there anything else that needs doing? | 0:05:49 | 0:05:52 | |
The main thing is obviously decor, improvements to the kitchen. | 0:05:52 | 0:05:56 | |
The central heating system looks dated, so possibly that needs | 0:05:56 | 0:05:59 | |
to be replaced, and maybe a full rewire would also be needed. | 0:05:59 | 0:06:03 | |
Once renovated, would this let easily? | 0:06:04 | 0:06:07 | |
The rental market in this area is very strong. I would imagine rental income in he region of | 0:06:07 | 0:06:13 | |
£450 per calendar month. | 0:06:13 | 0:06:15 | |
So rental's a possibility. But how much could this house, | 0:06:15 | 0:06:19 | |
that was guided at £35,000, sell for after a full refurbishment? | 0:06:19 | 0:06:24 | |
With the bathroom upstairs, fully modernised, I would recommend | 0:06:25 | 0:06:29 | |
an asking price in the region of £80-£85,000. | 0:06:29 | 0:06:32 | |
Well, I think this is a great property, especially at that guide price. | 0:06:35 | 0:06:38 | |
In fact, it's a bit of a gem. | 0:06:38 | 0:06:40 | |
Let's see who spotted this particular treasure when it went under the hammer. | 0:06:40 | 0:06:45 | |
Lot number 10. This is a traditional end-terrace house. | 0:06:45 | 0:06:49 | |
What shall we say for lot number 10? So it's £25,000 to start me. | 0:06:49 | 0:06:53 | |
20. Start me at 20, then. | 0:06:53 | 0:06:54 | |
20 bid, standing left. £20,000. | 0:06:54 | 0:06:57 | |
25, can I say now? £25,000. | 0:06:57 | 0:07:00 | |
£30,000, standing. £30,000 standing at the front. 35? | 0:07:00 | 0:07:04 | |
£35,000. | 0:07:04 | 0:07:05 | |
There was a lot of interest on auction day. | 0:07:05 | 0:07:09 | |
We rejoin the bidding at £49,000. | 0:07:09 | 0:07:11 | |
£49,000. The bid's in the aisle at £49,000. Are we all done? | 0:07:11 | 0:07:15 | |
£49,000. | 0:07:15 | 0:07:18 | |
£50,000, seated. At £50,000. 51? | 0:07:18 | 0:07:21 | |
Half, he's saying. £50,500. | 0:07:21 | 0:07:23 | |
51. | 0:07:23 | 0:07:25 | |
Half. | 0:07:25 | 0:07:26 | |
Shaking his head. £51,500. Still with you in the aisle, sir. | 0:07:26 | 0:07:29 | |
£51,500. Are we all done now? | 0:07:29 | 0:07:33 | |
£51,500, then, first time. | 0:07:33 | 0:07:35 | |
£51,500 second time. | 0:07:35 | 0:07:38 | |
Third and final time at £51,500... | 0:07:38 | 0:07:41 | |
It's your lot, sir. Well done. | 0:07:41 | 0:07:42 | |
That final bid of £51,500 was made by local man Ian. | 0:07:43 | 0:07:47 | |
He's roped in his son Neil to help him with the refurbishment. I met them both back | 0:07:47 | 0:07:54 | |
in Smallthorne to find out their plans. | 0:07:54 | 0:07:57 | |
-Ian, Neil, good to meet you both. -Hi. -Hi. -Congratulations. -Thank you very much. | 0:07:58 | 0:08:03 | |
-I don't know whether it is. -Why? What are you concerned about? | 0:08:03 | 0:08:06 | |
Well, we didn't actually look at it, so... | 0:08:06 | 0:08:10 | |
Why? Why, why, why, why?! | 0:08:10 | 0:08:13 | |
Well, I was looking at a house in Belper, | 0:08:13 | 0:08:15 | |
where Neil lives, and that fell through. And we'd only got | 0:08:15 | 0:08:19 | |
a couple of days before the auction, so we came round on the Sunday | 0:08:19 | 0:08:24 | |
and had a look through the windows, and then bought it on the Monday. | 0:08:24 | 0:08:27 | |
-So, what do you think now you've had a look? -It's not as bad... I was hoping | 0:08:27 | 0:08:31 | |
I wasn't going to have to do anything, but you don't get that sort of luck, so... | 0:08:31 | 0:08:34 | |
It's not as bad as I was expecting. | 0:08:34 | 0:08:38 | |
-So, do you work together a lot? -No, first one. -Yeah. -And is this a joint venture? | 0:08:38 | 0:08:42 | |
-No. -Not yet. -What? -What he needs to look at is... | 0:08:42 | 0:08:46 | |
I love the way he's talking to you as if you're not here! | 0:08:46 | 0:08:50 | |
-He still thinks you're four years old! Yes! -I sometimes feel like I'm four years old. | 0:08:50 | 0:08:56 | |
What he needs to think about is that he's more than likely going to be | 0:08:56 | 0:08:59 | |
-part of his inheritance, so you know... -Ah! -It's a bit of an incentive. | 0:08:59 | 0:09:04 | |
-Right. But what will your involvement be, Neil? -Basically, | 0:09:04 | 0:09:09 | |
I'm going to do most of the labour, put the central heating in, | 0:09:09 | 0:09:12 | |
look at the electrics, get the plasterers in, bathrooms in, kitchens. | 0:09:12 | 0:09:16 | |
-And what about you, Ian? -Me? | 0:09:16 | 0:09:18 | |
-I shall be carrying on with my day job. -Which is what? | 0:09:18 | 0:09:22 | |
I do the road traffic collision investigations for insurance companies. | 0:09:22 | 0:09:27 | |
-So if somebody has an accident, you go along and... -Yeah. The majority of the stuff we do | 0:09:27 | 0:09:31 | |
now is fraudulent claims. Keeps you busy. | 0:09:31 | 0:09:34 | |
# Well, get busy, busy, busy, busy, baby | 0:09:34 | 0:09:37 | |
# Busy, busy, busy as a bee... # | 0:09:37 | 0:09:40 | |
It seems as though if his father has anything to do with it, | 0:09:40 | 0:09:44 | |
Neil's the one who's going to be busy, combining work on the place | 0:09:44 | 0:09:47 | |
along with his day job. He'll have his dad's experience to call on, though, | 0:09:47 | 0:09:51 | |
as Ian dabbled in property some years ago, but sold up. | 0:09:51 | 0:09:56 | |
Now, with his eye on retirement and beyond, he's ready, with his son's help, | 0:09:56 | 0:10:00 | |
to get back to development. | 0:10:00 | 0:10:01 | |
# Well, get busy, busy, busy, busy, baby... # | 0:10:01 | 0:10:04 | |
So, Neil, you'll be picking up the pieces of this. What kind of | 0:10:04 | 0:10:07 | |
-experience have you got? -I run my own business. I'm a heating engineer, | 0:10:07 | 0:10:11 | |
-do air conditioning, oil-fired heating. -Air conditioning? | 0:10:11 | 0:10:14 | |
-Do we need that a lot up in Stoke? -You'd be surprised! | 0:10:14 | 0:10:16 | |
-It's got a fan. -It's got a fan - exactly! -Don't need air conditioning - | 0:10:16 | 0:10:21 | |
-open the windows! -Open the windows. -It's mainly commercial properties | 0:10:21 | 0:10:24 | |
-I put the air conditioning in. -Fantastic. | 0:10:24 | 0:10:27 | |
So you're going to be doing the majority of the work. Will you get | 0:10:27 | 0:10:30 | |
-people in to do it? -Yeah. | 0:10:30 | 0:10:32 | |
I'll be physically hands-on, but we'll get plasterers in, and, | 0:10:32 | 0:10:36 | |
as far as the plumbing goes, and decorating and doing the building work, | 0:10:36 | 0:10:40 | |
there's not really much I've not done myself. | 0:10:40 | 0:10:42 | |
But Ian and Neil aren't planning just to do a simple cosmetic refurb. | 0:10:42 | 0:10:48 | |
They're also planning to rejig the layout. | 0:10:48 | 0:10:51 | |
Moving the bathroom upstairs, | 0:10:51 | 0:10:54 | |
new kitchen, damp-proof, obviously, cos it's a little bit iffy in places, | 0:10:54 | 0:11:00 | |
-Erm...I'm going to split the middle bedroom. -Right. | 0:11:00 | 0:11:05 | |
Put a bathroom in one side. Single bedroom on the other side. | 0:11:05 | 0:11:10 | |
By the way, this is his idea. | 0:11:10 | 0:11:12 | |
-It's not mine. -Right. And it's a good idea, so well done! | 0:11:12 | 0:11:15 | |
I think the bathroom at the back, there's not many people, particularly families, | 0:11:15 | 0:11:19 | |
that want a bathroom downstairs, so putting the bathroom upstairs will sort that problem. | 0:11:19 | 0:11:23 | |
And it'll give us a bit of free space at the back of the property, | 0:11:23 | 0:11:26 | |
-so we can make the kitchen into a kitchen-diner. -Nice idea. | 0:11:26 | 0:11:29 | |
A utility room at the back, so all the white goods can go into the utility room. | 0:11:29 | 0:11:33 | |
So talk me through the numbers. What kind of amount of money are you | 0:11:33 | 0:11:36 | |
-going to have to plough into it? -£10-15,000, I would think. | 0:11:36 | 0:11:40 | |
-What do you think? -I think he'd like it to be £10-15,000, but I think | 0:11:40 | 0:11:43 | |
-realistically, it'll be around £20,000. -You're going to have to sharpen your pencil! | 0:11:43 | 0:11:48 | |
-This is where the free labour comes in. -And timescale - | 0:11:48 | 0:11:53 | |
-is that a contentious issue or not? -Not really. Erm...two, three months. | 0:11:53 | 0:12:00 | |
-Something like that, realistically. -Well, congratulations and good luck | 0:12:00 | 0:12:03 | |
-with it. Really nice to meet you both. -Thanks very much. | 0:12:03 | 0:12:06 | |
I look forward to seeing how you get on. | 0:12:06 | 0:12:09 | |
Well, being an accident investigator, Ian is pretty used to | 0:12:09 | 0:12:13 | |
looking at disasters. Still, I am quite surprised that he bought | 0:12:13 | 0:12:16 | |
this place without viewing it first. On this occasion, though, I think | 0:12:16 | 0:12:19 | |
he might have got away with it. It's a good house, and with Neil's help, | 0:12:19 | 0:12:23 | |
he should be able to put it back into some good condition. | 0:12:23 | 0:12:25 | |
You can find out how he gets on - or THEY get on - later in the show. | 0:12:25 | 0:12:29 | |
Today I'm on the south coast, in a seaside port with Royal credentials. | 0:12:34 | 0:12:38 | |
# Somewhere | 0:12:38 | 0:12:40 | |
# Beyond the sea... # | 0:12:42 | 0:12:44 | |
Ramsgate became Royal Ramsgate when King George IV was impressed | 0:12:44 | 0:12:48 | |
by the welcome he received there in 1820. Nowadays, the harbour area has been spruced up | 0:12:48 | 0:12:53 | |
and the town's links to London - only an hour and a half by train - | 0:12:53 | 0:12:58 | |
make it increasingly popular. | 0:12:58 | 0:13:00 | |
Well, just a short walk from the Royal Harbour and I'm here today | 0:13:04 | 0:13:07 | |
on Harbour Street to see the auction lot. Now, the question is, | 0:13:07 | 0:13:11 | |
will the property be a port in a stormy economic climate, or will it be harbouring a secret? | 0:13:11 | 0:13:17 | |
Well, this is it - 12 commercial units and eight flats on top. | 0:13:17 | 0:13:21 | |
It's all in here, and the guide, £180-£200,000. | 0:13:21 | 0:13:26 | |
Yes, it's a lot of property for the money, but the layout won't float | 0:13:28 | 0:13:31 | |
everyone's boat. Not only is it all above a pub, the retail spaces | 0:13:31 | 0:13:35 | |
are in the first floor - hardly ideal. However, they look in pretty good condition, | 0:13:35 | 0:13:40 | |
and noise from the pub isn't going to be an issue for these businesses. | 0:13:40 | 0:13:44 | |
So far, so good. | 0:13:44 | 0:13:46 | |
Unfortunately, this is where things take a decidedly dark turn. | 0:13:52 | 0:13:56 | |
Not one but two fires have ripped through the flats, | 0:13:56 | 0:14:00 | |
and there's extensive damage. | 0:14:00 | 0:14:02 | |
Fortunately, no-one was seriously injured, but they have been left | 0:14:04 | 0:14:07 | |
in a sorry state. | 0:14:07 | 0:14:09 | |
You can see it is completely fire-damaged. | 0:14:11 | 0:14:14 | |
Now, it hasn't affected the structure, apparently, | 0:14:14 | 0:14:17 | |
but to be safe, I would have a structural engineer in here to assess this damage. | 0:14:17 | 0:14:21 | |
It'll also give you an idea of how much you need to spend renovating this place. | 0:14:21 | 0:14:25 | |
If the building is structurally unsound, your budget could spiral out of control. | 0:14:25 | 0:14:30 | |
It's not just the structure that needs checking by professionals. | 0:14:32 | 0:14:35 | |
Fire and the accompanying water damage can mean compromised | 0:14:35 | 0:14:39 | |
electrics and plumbing. It's easy to see how this fire spread. | 0:14:39 | 0:14:43 | |
There are eight flats spread over three floors - four flats on the first floor, | 0:14:43 | 0:14:48 | |
three flats on the second floor and a third-floor flat with a balcony. | 0:14:48 | 0:14:52 | |
It's like a rabbit warren, with lots of little corridors. The layout is | 0:14:52 | 0:14:57 | |
really confusing. This isn't just a renovation job, | 0:14:57 | 0:15:01 | |
it's a reconfiguration one too. On the plus side, | 0:15:01 | 0:15:04 | |
there are some very spacious rooms up here, | 0:15:04 | 0:15:07 | |
and the flat on the very top floor has plenty of light | 0:15:07 | 0:15:10 | |
and terrific views. | 0:15:10 | 0:15:12 | |
Before I get too excited, though, there's one important consideration. | 0:15:12 | 0:15:17 | |
This property is in a conservation area. That means you have to obtain | 0:15:17 | 0:15:20 | |
permission before making any changes which would normally be permitted | 0:15:20 | 0:15:24 | |
elsewhere to ensure alterations do not detract from the area's appearance. | 0:15:24 | 0:15:29 | |
Now, these changes include certain types of cladding, | 0:15:29 | 0:15:33 | |
inserting dormer windows, and putting up satellite dishes | 0:15:33 | 0:15:36 | |
which are visible from the street. The local authorities can also make | 0:15:36 | 0:15:40 | |
further restrictions, including painting the house a different colour, | 0:15:40 | 0:15:43 | |
changing distinctive doors or windows. | 0:15:43 | 0:15:46 | |
Conservation area designation is a means of recognising the importance | 0:15:46 | 0:15:51 | |
of the quality of the area as whole, | 0:15:51 | 0:15:53 | |
as well as protecting the individual buildings. | 0:15:53 | 0:15:57 | |
Restoration rather than straightforward replacement | 0:15:57 | 0:16:00 | |
can add a lot to your costs, so you really do need to do your homework | 0:16:00 | 0:16:04 | |
when it comes to a conservation area. | 0:16:04 | 0:16:06 | |
Much as this central location seems handy, | 0:16:06 | 0:16:09 | |
I've spotted another drawback. | 0:16:09 | 0:16:11 | |
So there'll be plenty of parking with this huge property, right? | 0:16:11 | 0:16:15 | |
Parking for the residents, parking for the small businesses? | 0:16:15 | 0:16:19 | |
Well, no, I'm afraid not. No parking spaces at all. | 0:16:19 | 0:16:22 | |
Sorry - you'll just have to pay at the meter. | 0:16:22 | 0:16:25 | |
To make something of this property is going to take a healthy dose | 0:16:29 | 0:16:32 | |
of imagination, but I do think there's potential here. | 0:16:32 | 0:16:35 | |
We asked a local estate agent to take a look around | 0:16:37 | 0:16:40 | |
and see if he agreed. | 0:16:40 | 0:16:42 | |
This property is in an absolutely excellent location, | 0:16:42 | 0:16:46 | |
in a pedestrianised street. | 0:16:46 | 0:16:47 | |
It's very close to the harbour, which is absolutely wonderful. | 0:16:47 | 0:16:51 | |
Lots of bars and restaurants around, so it's really situated in a super location. | 0:16:51 | 0:16:55 | |
I really do agree. The setting is fantastic. But beyond dealing | 0:16:56 | 0:17:01 | |
with the fire damage, what does this property need? | 0:17:01 | 0:17:04 | |
This property's quite unusual, | 0:17:04 | 0:17:06 | |
in that it's got eight flats laid out in a higgledy-piggledy manner at the moment. | 0:17:06 | 0:17:11 | |
And I think, realistically, you should be reducing that number down | 0:17:11 | 0:17:15 | |
to maybe five, possibly six, and that would really improve the layout. | 0:17:15 | 0:17:19 | |
Sounds like a good plan. And what might those flats fetch | 0:17:20 | 0:17:23 | |
on the open market? | 0:17:23 | 0:17:25 | |
It would be nice to get two-bedroom flats in here, | 0:17:25 | 0:17:28 | |
and for that sort of property, you're going to be looking at around about | 0:17:28 | 0:17:32 | |
£125,000. If the property was in slightly better condition, | 0:17:32 | 0:17:37 | |
maybe more luxurious, you could push that up to maybe £135,000. | 0:17:37 | 0:17:41 | |
-And if you rented those flats out? -You're going to be looking at | 0:17:42 | 0:17:46 | |
a rental in the region of £550-£600 per calendar month. | 0:17:46 | 0:17:51 | |
What about letting the commercial units on the first floor? | 0:17:51 | 0:17:55 | |
The commercial units are quite unusual. | 0:17:55 | 0:17:58 | |
They look to be arranged at the moment as small units, | 0:17:58 | 0:18:01 | |
and ideally, you're probably going to be looking at about £100 per week | 0:18:01 | 0:18:04 | |
for these properties. Maybe a little bit less, depending on the market conditions. | 0:18:04 | 0:18:09 | |
This is a fantastic property, but its development potential could be | 0:18:11 | 0:18:15 | |
slightly limited. There's not much parking around here - | 0:18:15 | 0:18:19 | |
that's not good for commercial or residential premises. | 0:18:19 | 0:18:23 | |
The fact that it's in a conservation area will also have implications for the new owner. | 0:18:23 | 0:18:28 | |
It is a tough one to take on, in my opinion, but somebody wanted it. | 0:18:28 | 0:18:31 | |
Let's see who that was as we head to auction. | 0:18:31 | 0:18:33 | |
Lot 104. 12 commercial units and the eight fire-damaged flats. | 0:18:36 | 0:18:41 | |
Lots of potential here. It's guided at 180-200. | 0:18:41 | 0:18:45 | |
What may I say? £180,000 to start me? | 0:18:45 | 0:18:48 | |
£180,000 I'm bid. | 0:18:48 | 0:18:50 | |
185. And 190. | 0:18:50 | 0:18:52 | |
£185,000 I'm bid. Gentleman in the white shirt. | 0:18:54 | 0:18:57 | |
190. 195 is bid. | 0:18:57 | 0:19:01 | |
And 200. | 0:19:01 | 0:19:02 | |
205 is bid. And 210, sir. | 0:19:02 | 0:19:05 | |
210 is bid. And 215. | 0:19:05 | 0:19:07 | |
215. And 220. | 0:19:07 | 0:19:09 | |
220 is bid. 225? No. | 0:19:10 | 0:19:13 | |
Take £2,000 if you're quick. | 0:19:13 | 0:19:15 | |
222. And 225. | 0:19:15 | 0:19:18 | |
225. And 227? No. | 0:19:18 | 0:19:21 | |
At £225,000 I have. 227 for anyone else? | 0:19:21 | 0:19:26 | |
£225,000 for the first time, then. At £225,000, out in the white shirt. | 0:19:27 | 0:19:33 | |
At £225,000 for the second time... | 0:19:33 | 0:19:36 | |
£225,000 for the third and final time. | 0:19:36 | 0:19:40 | |
£225,000, are you all done? | 0:19:40 | 0:19:43 | |
9957, thank you very much indeed. | 0:19:43 | 0:19:46 | |
The successful bid of £225,000 was made by Chris and his Ukrainian wife Victoria. | 0:19:50 | 0:19:55 | |
They're in partnership with Anna, who is Russian. | 0:19:55 | 0:19:59 | |
Chris and Victoria currently run three pubs, but have lots of hands-on renovation experience. | 0:19:59 | 0:20:04 | |
I met up with them to find out more. | 0:20:04 | 0:20:07 | |
Chris and Victoria, congratulations. What was the inspiration | 0:20:10 | 0:20:15 | |
-behind you wanting to have this? -Well, it's quite a project, | 0:20:15 | 0:20:18 | |
and the uplift there's been in Ramsgate, that's one of the major reasons we liked the idea. | 0:20:18 | 0:20:23 | |
We just came and we fell in love with the harbour, which is excellent. | 0:20:23 | 0:20:29 | |
It is an amazing harbour. I've visited quite frequently, | 0:20:29 | 0:20:33 | |
and I can't believe the changes. It's fantastic around here. | 0:20:33 | 0:20:37 | |
The project will be financed by Anna and her husband Alexander, while Victoria and Chris project-manage. | 0:20:37 | 0:20:42 | |
So, what is your background? | 0:20:42 | 0:20:45 | |
Well, at the moment, we're running pubs. But I've had a building company before. | 0:20:45 | 0:20:51 | |
Victoria was doing cakes. And we got together with some business colleagues of ours and took this. | 0:20:51 | 0:20:57 | |
He actually was doing my shop. | 0:20:57 | 0:21:00 | |
-Oh, really? Is that how you guys met? -Yeah. -Fantastic. | 0:21:00 | 0:21:04 | |
-Yeah. -Yes, she bought a shop, and that needed refurbishing, and I got | 0:21:04 | 0:21:08 | |
the quote and the price right, so... And from that day on, we've been together, really. | 0:21:08 | 0:21:13 | |
So will this development be the icing on their cake? | 0:21:15 | 0:21:18 | |
Chris and Victoria would like to turn the shops into office units, | 0:21:18 | 0:21:23 | |
but they've got bigger plans for the fire-damaged flats. | 0:21:23 | 0:21:26 | |
-What are you going to do? -The first project, we've got people coming in | 0:21:28 | 0:21:33 | |
to just clear it out, and get rid of all of the rubbish and the burnt stains | 0:21:33 | 0:21:36 | |
and all the problems. Then get the scaffolding up, start working on the front, | 0:21:36 | 0:21:40 | |
cos we can't change the front, but that can be continuing while | 0:21:40 | 0:21:44 | |
we're going for planning and all the rest of it. And get the architect involved. | 0:21:44 | 0:21:47 | |
How many flats are you going to convert it into? | 0:21:47 | 0:21:49 | |
Well, there's eight at the moment, and we want to keep it to about that number. | 0:21:49 | 0:21:53 | |
But they just need chopping about slightly. But I think even if the fires hadn't happened, | 0:21:53 | 0:21:58 | |
we'd have had to have done some alterations and refurb here anyway. | 0:21:58 | 0:22:01 | |
So the fire has just caused us a few more problems, but it's made | 0:22:01 | 0:22:05 | |
the price a lot better than it would be if this was an easy refurb. | 0:22:05 | 0:22:08 | |
So what sort of budget are you looking at to change it and do the work? | 0:22:08 | 0:22:11 | |
-We're hoping to, with the purchase price and all the fees and everything else, not to spend over £500,000. -OK. | 0:22:11 | 0:22:18 | |
-How long is this project going to take you to complete? -I think | 0:22:18 | 0:22:21 | |
from the time we start the works, it's going to be about eight months, | 0:22:21 | 0:22:25 | |
but that's going to be relative to what the authorities come back with. | 0:22:25 | 0:22:29 | |
-Planners and suchlike can take their own times. -And how are you going | 0:22:29 | 0:22:33 | |
to fit all of this in with your other jobs? | 0:22:33 | 0:22:36 | |
-Lot of support from my other half. -Victoria, you're going to have a lot going on! | 0:22:37 | 0:22:42 | |
-I know! But I love it. -Most of this is going to be | 0:22:42 | 0:22:45 | |
the project-manage side. I'm not going to get my tools out and start cutting bits of wood about. | 0:22:45 | 0:22:50 | |
You're going to keep looking smart and turn up on the job. | 0:22:50 | 0:22:53 | |
-And tell them what to do. -I like it! | 0:22:53 | 0:22:55 | |
Guys, I can't wait to see what you do here, and good luck with the planners. | 0:22:57 | 0:23:01 | |
-Thank you. -Thank you. -Thank you. | 0:23:01 | 0:23:03 | |
They may be used to running three pubs, but how will they get on with | 0:23:05 | 0:23:08 | |
12 commercial units and eight fire-damaged flats? You know, | 0:23:08 | 0:23:13 | |
they really have got big plans for this place, but I worry that the lack of parking | 0:23:13 | 0:23:17 | |
will not impress those planners. | 0:23:17 | 0:23:19 | |
You can find out if they obtained that all-important planning permission | 0:23:19 | 0:23:23 | |
later on in the programme. | 0:23:23 | 0:23:24 | |
Coming up... This mid-terrace in South Wales has three levels, | 0:23:27 | 0:23:31 | |
but it's all a bit...battered! | 0:23:31 | 0:23:33 | |
Two cod and chips, please! | 0:23:34 | 0:23:36 | |
It's back to Ramsgate, to see how the Russian and UK development team | 0:23:38 | 0:23:43 | |
have been getting on with this vast property. | 0:23:43 | 0:23:46 | |
But first, we return to Stoke-on-Trent, where some surprises | 0:23:49 | 0:23:52 | |
have sprung up. | 0:23:52 | 0:23:53 | |
The main problem was the damp, getting rid of the damp. | 0:23:53 | 0:23:56 | |
The city of Stoke-on-Trent | 0:24:00 | 0:24:02 | |
is made up of six different Staffordshire towns and several villages. | 0:24:02 | 0:24:06 | |
Smallthorne, a former mining community about three miles from Stoke, | 0:24:06 | 0:24:10 | |
is where we saw this three-bed end-of-terrace. It was bought for £51,500 by Ian, | 0:24:10 | 0:24:16 | |
who roped in his son Neil to help with the renovations. | 0:24:16 | 0:24:19 | |
Neil works in air conditioning installation and plumbing, so his skills were going to be handy. | 0:24:19 | 0:24:26 | |
Dad Ian, an accident investigation officer for an insurance company, | 0:24:26 | 0:24:30 | |
already had two buy-to-let properties, but Neil was a newbie. | 0:24:30 | 0:24:35 | |
-Do you work together a lot? -No, first one. -And is this a joint venture? | 0:24:35 | 0:24:39 | |
-No. -Not yet. -What? -What he needs to look at is... -I love the way | 0:24:39 | 0:24:46 | |
he's talking to you as if you're not here! He still thinks you're four years old. | 0:24:46 | 0:24:50 | |
Sometimes I feel like I'm four years old! | 0:24:50 | 0:24:52 | |
Well, the refurbishment certainly wasn't going to be child's play. | 0:24:54 | 0:24:57 | |
# So please don't treat me | 0:24:57 | 0:25:00 | |
# Like a child... # | 0:25:01 | 0:25:04 | |
They planned to move the bathroom upstairs into part of the middle bedroom, | 0:25:06 | 0:25:10 | |
and had a budget of £10-20,000 and a two- to three-month timescale. | 0:25:10 | 0:25:15 | |
Well, seven months have now passed, and back in Smallthorne, | 0:25:15 | 0:25:19 | |
it's Ian we met at the property. | 0:25:19 | 0:25:21 | |
There have been some impressive changes. | 0:25:24 | 0:25:26 | |
But the kitchen is not quite complete. | 0:25:27 | 0:25:29 | |
Let's head upstairs and see if son Neil | 0:25:30 | 0:25:33 | |
won the day about moving the bathroom. | 0:25:33 | 0:25:36 | |
The answer? | 0:25:37 | 0:25:38 | |
Just look at the result. | 0:25:40 | 0:25:41 | |
Splitting the former middle bedroom has worked a treat. | 0:25:45 | 0:25:48 | |
There are still three bedrooms. | 0:25:51 | 0:25:55 | |
This one's at the rear. | 0:25:55 | 0:25:56 | |
And the double-aspect master at the front. | 0:25:59 | 0:26:02 | |
This is a vast improvement, and so is the downstairs layout change, | 0:26:02 | 0:26:07 | |
which is still in progress. | 0:26:07 | 0:26:09 | |
This was the old kitchen, as it was - sink there. | 0:26:10 | 0:26:15 | |
Absolute dreadful mess. | 0:26:15 | 0:26:18 | |
The bathroom was up that end. | 0:26:18 | 0:26:20 | |
So we thought we'd start with the bathroom first, | 0:26:20 | 0:26:23 | |
but when we started doing that, the whole place was running with water. | 0:26:23 | 0:26:27 | |
We decided we'd make that into a dining kitchen, | 0:26:27 | 0:26:31 | |
so this wall here that was in before, | 0:26:31 | 0:26:35 | |
we knocked it out - | 0:26:35 | 0:26:37 | |
well, we had a builder in to do it - | 0:26:37 | 0:26:39 | |
and made it into what it is now, the kitchen-dining room. | 0:26:39 | 0:26:43 | |
The corridor linking the kitchen to the living room now has | 0:26:44 | 0:26:48 | |
laminate flooring and a subtle colour scheme. | 0:26:48 | 0:26:52 | |
Losing the fireplace in the dual-aspect reception was wise. | 0:26:52 | 0:26:56 | |
It's been the same treatment for the middle reception room, | 0:27:00 | 0:27:03 | |
where the staircase is. | 0:27:03 | 0:27:04 | |
The property's looking good, but what issues did it present? | 0:27:04 | 0:27:07 | |
Well, the main problem was the damp. Getting rid of the damp, | 0:27:09 | 0:27:12 | |
because it was running, literally running, through the walls in places, | 0:27:12 | 0:27:16 | |
and we didn't realise quite how bad it was. | 0:27:16 | 0:27:19 | |
And then once we started getting through all the rubbish, | 0:27:19 | 0:27:22 | |
we found it was a lot worse than we thought, | 0:27:22 | 0:27:25 | |
especially what was the bathroom at the back. | 0:27:25 | 0:27:27 | |
# Baby, what's so bad about it? | 0:27:29 | 0:27:32 | |
# Baby, what's so bad about it? # | 0:27:34 | 0:27:38 | |
The house was in a sorry state, | 0:27:38 | 0:27:40 | |
and fixing the damp was a major unexpected job. | 0:27:40 | 0:27:44 | |
The whole house has been plastered, everything. | 0:27:44 | 0:27:47 | |
We had to chop off to a metre. | 0:27:47 | 0:27:49 | |
Damp-proof course, tanked all the way round. | 0:27:49 | 0:27:54 | |
And then it all had to be waterproof-rendered, | 0:27:54 | 0:27:58 | |
and then we skimmed the whole lot. | 0:27:58 | 0:28:01 | |
It didn't end there. The extension has been re-roofed, the flashing | 0:28:01 | 0:28:06 | |
round the chimney's been replaced, and the whole house has been rewired | 0:28:06 | 0:28:10 | |
and replumbed. Ian and Neil both work full-time and have been doing | 0:28:10 | 0:28:15 | |
the refurbishment in their spare time. How's the work been divided up? | 0:28:15 | 0:28:19 | |
He's done most of it. I've been helping him. He's done the bathroom. | 0:28:19 | 0:28:25 | |
He's done all the plumbing. He's fitted the kitchen, done a lot of the labouring work. | 0:28:25 | 0:28:30 | |
We got a plasterer in, electrician. But apart from that, | 0:28:30 | 0:28:33 | |
he's done it all. | 0:28:33 | 0:28:35 | |
Ian's wife has been responsible for the stylish bathroom, | 0:28:35 | 0:28:38 | |
and the kitchen units - a good choice. With the unexpected damp problems | 0:28:38 | 0:28:43 | |
to tackle, plus the plasterer and electrician to employ, | 0:28:43 | 0:28:47 | |
how did the budget stack up? Did Ian keep to his £10-15,000? | 0:28:47 | 0:28:51 | |
I think I budgeted 15, | 0:28:51 | 0:28:54 | |
and my lad, who was with me, he said 20. | 0:28:54 | 0:28:58 | |
It's probably... The whole lot has now cost us about £30,000. | 0:28:58 | 0:29:03 | |
With the £51,500 Ian spent at auction, | 0:29:04 | 0:29:07 | |
that takes his total investment here to £81,500. | 0:29:07 | 0:29:11 | |
I wonder if Ian's decided to sell the house or let it? | 0:29:11 | 0:29:15 | |
Not sure. See what it's worth. If it's worth enough, we'll sell it, | 0:29:18 | 0:29:23 | |
or try and sell it. If not, we'll rent it. | 0:29:23 | 0:29:26 | |
Let's see if two local estate agents | 0:29:26 | 0:29:28 | |
we invited along can help Ian decide which option is best at the moment. | 0:29:28 | 0:29:33 | |
There's quite a change since the first time this agent saw it. | 0:29:33 | 0:29:37 | |
Moving the bathroom upstairs is definitely a good idea for this property. | 0:29:37 | 0:29:42 | |
With three bedrooms, the size of the property here, | 0:29:42 | 0:29:45 | |
people would expect a first-floor bathroom. | 0:29:45 | 0:29:48 | |
The kitchen's lovely. | 0:29:48 | 0:29:49 | |
They've spent a significant part of the budget there, | 0:29:49 | 0:29:51 | |
but it's a light, airy and spacious room. | 0:29:51 | 0:29:53 | |
Ian has £81,500 invested in the house, so how much could the place | 0:29:54 | 0:29:59 | |
-be worth on the resale market? -If I was to put this property on sale, | 0:29:59 | 0:30:03 | |
I would expect it to achieve in the region of £75,000 to £80,000. | 0:30:03 | 0:30:06 | |
I would place this property on the open market | 0:30:06 | 0:30:10 | |
in the region of £80-85,000. | 0:30:10 | 0:30:12 | |
With that valuation range, Ian's facing a loss of £6,500 | 0:30:12 | 0:30:16 | |
or a profit of £3,500 before tax and expenses. | 0:30:16 | 0:30:21 | |
It's about what I thought. | 0:30:22 | 0:30:24 | |
We're within the parameters, so not a problem. I'm happy with that. | 0:30:24 | 0:30:29 | |
If Ian decides to let it, what income could the house achieve? | 0:30:30 | 0:30:35 | |
I would anticipate the rental income in the region of £450 to £500 per calendar month. | 0:30:35 | 0:30:40 | |
Rental figure per calendar month, you'd be looking at £450. | 0:30:40 | 0:30:44 | |
That potential rental spectrum from £450 to £500 per calendar month | 0:30:44 | 0:30:49 | |
would produce a yield of 6.5 to over 7%. What does Ian think of that? | 0:30:49 | 0:30:54 | |
We've already got somebody who wants it for £500, so we'll probably end up renting it. | 0:30:55 | 0:31:00 | |
Ian's intention is to grow his buy-to-let portfolio, and this house | 0:31:02 | 0:31:06 | |
takes his total to three. This one had some nasty surprises in store, | 0:31:06 | 0:31:11 | |
so I hope he'll view the next property before he buys it. | 0:31:11 | 0:31:16 | |
The question is, has this been a worthwhile project? | 0:31:16 | 0:31:19 | |
Yeah. I thought... | 0:31:19 | 0:31:20 | |
Well, I didn't expect to spend as much on it as we had. | 0:31:20 | 0:31:24 | |
Um...so it's just taken us a little bit by surprise, but, yeah, | 0:31:24 | 0:31:28 | |
it's been all right. Hard work, but OK. | 0:31:28 | 0:31:30 | |
This is Mountain Ash, deep in the Welsh valleys, and a place | 0:31:35 | 0:31:39 | |
with an interesting New Year's Eve tradition. Each December 31st, | 0:31:39 | 0:31:43 | |
thousands of locals line the streets to watch a running race | 0:31:43 | 0:31:47 | |
that goes twice round the town. | 0:31:47 | 0:31:50 | |
# Now the race is on... # | 0:31:50 | 0:31:52 | |
The race commemorates athlete Griffith Morgan, whose statue stands | 0:31:54 | 0:31:57 | |
on the High Street. I'm not sure I'd fancy a cold winter's jog | 0:31:57 | 0:32:02 | |
on New Year's Eve, but I am hot-footing it over to our property | 0:32:02 | 0:32:06 | |
to see what the auction had to offer. | 0:32:06 | 0:32:08 | |
So a mile from Mountain Ash is the village of Penrhiwceiber, | 0:32:08 | 0:32:12 | |
with stunning views over the valleys. They never fail to take my breath away. | 0:32:12 | 0:32:17 | |
And the property? Well, the guide price might make you gasp as well - | 0:32:17 | 0:32:21 | |
£30,000 for a three-bedroom terrace. Sounds good. | 0:32:21 | 0:32:27 | |
Hello, hello, what have we got here, then? Two cod and chips, please! | 0:32:27 | 0:32:32 | |
I don't really think this works. It does allow a lot of light into the hallway. | 0:32:32 | 0:32:36 | |
Just feels like a taxi cab waiting room. | 0:32:36 | 0:32:38 | |
I think this has got to be boarded up, because you've got such a lovely big space here. | 0:32:38 | 0:32:44 | |
Double-aspect windows. This has already been knocked through into one room, | 0:32:44 | 0:32:48 | |
and it works. | 0:32:48 | 0:32:49 | |
You've got this big old view to look at. I mean, how stunning, | 0:32:49 | 0:32:53 | |
even on a misty day like today? Looks fabulous out there. | 0:32:53 | 0:32:57 | |
One thing I would have to investigate further is this... | 0:32:57 | 0:33:00 | |
Now, what is this about? Can you see? You can kind of, like, | 0:33:00 | 0:33:04 | |
bounce off the walls in this house, literally! | 0:33:04 | 0:33:08 | |
It's all been plasterboarded, so I think I'd investigate further, | 0:33:08 | 0:33:12 | |
because they might be hiding a deep, murky secret. | 0:33:12 | 0:33:15 | |
But as this space goes, it's wonderfully large, it's light and bright. It works. | 0:33:15 | 0:33:20 | |
For starters, though, that hall hatch has got to go. And there's | 0:33:23 | 0:33:28 | |
some dodgy do-it-yourself that you'll have to redo yourself. | 0:33:28 | 0:33:31 | |
And I'd investigate those wobbly walls before I'd try to hang anything on them. | 0:33:31 | 0:33:35 | |
# ..tumble and fall... # | 0:33:38 | 0:33:40 | |
This house is on three floors. I'm going up first. There are three bedrooms, | 0:33:40 | 0:33:44 | |
but note - no bathroom. Two of the bedrooms have been | 0:33:44 | 0:33:48 | |
created from what would have been a large front room. The third room | 0:33:48 | 0:33:52 | |
is small, so there's not much room to manoeuvre, | 0:33:52 | 0:33:55 | |
or bathroom, for that matter. | 0:33:55 | 0:33:57 | |
There's some work needed here, but nothing structural, | 0:34:00 | 0:34:04 | |
by the looks of things. Let's see if the lower ground is the same. | 0:34:04 | 0:34:07 | |
Well, it's a different story altogether downstairs. | 0:34:09 | 0:34:12 | |
The first thing that hits you is the big smell of damp. | 0:34:12 | 0:34:15 | |
Now, reception room through here. | 0:34:15 | 0:34:17 | |
They've gone Artex-crazy - it looks like there's some Easter eggs | 0:34:17 | 0:34:21 | |
on the ceiling. And through here is the kitchen - really disappointing. | 0:34:21 | 0:34:26 | |
It's a bit small, it's dark, there's not much light coming through | 0:34:26 | 0:34:30 | |
that window. The only bathroom is through there, with no loo. | 0:34:30 | 0:34:34 | |
It just feels wrong. Now, where is the toilet, if it's not in there? | 0:34:34 | 0:34:39 | |
Let's have a look through here... Of course! Here it is. Outside loo. | 0:34:39 | 0:34:44 | |
It's really chilly out here. This is like a cobbled-together lean-to. | 0:34:44 | 0:34:47 | |
Can you imagine, in the middle of the night, | 0:34:47 | 0:34:49 | |
not only have you got to come down one flight of stairs, you've got to come down two flights of stairs, | 0:34:49 | 0:34:54 | |
you've got to battle with this outside door, go to the loo... | 0:34:54 | 0:34:59 | |
Uh-uh - it's just not working for me. | 0:34:59 | 0:35:01 | |
I really think, to make this place flow, you need to think about | 0:35:01 | 0:35:05 | |
moving this kitchen into this room. You'd have a nice open-plan, | 0:35:05 | 0:35:09 | |
sort of kitchen-diner feel. You could have a fantastic utility room through there. | 0:35:09 | 0:35:14 | |
Make the bathroom a bit bigger, move the loo, put it in there. | 0:35:14 | 0:35:17 | |
Now, I'm not saying you're not going to have drainage problems. | 0:35:17 | 0:35:20 | |
You've got to think about the plumbing, but I'm just thinking about how you want | 0:35:20 | 0:35:24 | |
to live, and I think that's the way to do it. | 0:35:24 | 0:35:27 | |
You've got to make this kitchen somewhere you actually want to cook, | 0:35:27 | 0:35:30 | |
rather than a dingy, dark cave with the bathroom right next door. | 0:35:30 | 0:35:34 | |
As for that toilet, well, the lean-to has got to go. | 0:35:34 | 0:35:38 | |
Who exactly is this convenience convenient for? It's practically an outside toilet. | 0:35:38 | 0:35:44 | |
And the thought of that makes me shiver! | 0:35:44 | 0:35:47 | |
# Shiver | 0:35:47 | 0:35:51 | |
# Shiver... # | 0:35:53 | 0:35:55 | |
And while we're outside, the distant views may be great, | 0:35:55 | 0:35:59 | |
but this auction lot that was guided at £30,000-plus isn't as pleasing on the eye. | 0:35:59 | 0:36:04 | |
Back inside, and what's fast becoming my obsession in this property - loos! | 0:36:04 | 0:36:10 | |
I'd try to squeeze one up on the landing on the top floor. | 0:36:10 | 0:36:14 | |
It might just be do-able. All those changes cost money, and the local housing market | 0:36:14 | 0:36:18 | |
has a ceiling price. So, what would a local estate agent advise here? | 0:36:18 | 0:36:23 | |
The house here is a slightly awkward configuration, | 0:36:26 | 0:36:29 | |
with the bedrooms to the second floor and the bathroom and kitchen both to the basement levels. | 0:36:29 | 0:36:34 | |
So the new owner is probably wise to consider perhaps looking to put a loo | 0:36:34 | 0:36:38 | |
somewhere upstairs in this property, and perhaps increasing the size | 0:36:38 | 0:36:41 | |
of the kitchen, which, at the moment, is fairly small. | 0:36:41 | 0:36:44 | |
What effect would losing a bedroom have on the resale value? | 0:36:44 | 0:36:48 | |
The potential value here would be in the region of £50,000. If the property | 0:36:48 | 0:36:53 | |
was converted into a two-bed property, the potential sales value | 0:36:53 | 0:36:57 | |
would be in the region of £40,000. | 0:36:57 | 0:36:59 | |
But if the loo was moved upstairs, keeping three bedrooms, | 0:37:00 | 0:37:04 | |
-what effect would that have on the rent? -Fully renovated, this property is worth | 0:37:04 | 0:37:09 | |
between £350 and £375 per calendar month. | 0:37:09 | 0:37:12 | |
What if the bathroom was moved upstairs into one of the bedrooms? | 0:37:14 | 0:37:17 | |
If it was converted to a two-bed with an upstairs bathroom, the rent would | 0:37:19 | 0:37:23 | |
be reduced to in the region of £325 per calendar month. | 0:37:23 | 0:37:26 | |
A great rental, pure and simple. Work to do, though, but perfect | 0:37:27 | 0:37:33 | |
for those who appreciate a view and have strong legs for the stairs. | 0:37:33 | 0:37:36 | |
Let's see who went for this at the auction. | 0:37:36 | 0:37:39 | |
Moving on to lot number 18 - | 0:37:39 | 0:37:40 | |
freehold, three-bed, mid-terrace house, close to local amenities, | 0:37:40 | 0:37:44 | |
with uPVC double glazing and gas central heating. £28,000 to get things started? 28? | 0:37:44 | 0:37:49 | |
25 then, ladies and gentlemen. 25 to get me started. There we are! | 0:37:50 | 0:37:53 | |
£25,000 and the hands go up. £25,000 I've got. £25,000 is bid. | 0:37:53 | 0:37:57 | |
6? £26,000. 27. 8. | 0:37:57 | 0:38:00 | |
£28,000 I've got. | 0:38:00 | 0:38:02 | |
£28,000 I have. And 9. | 0:38:02 | 0:38:05 | |
Thank you. £29,000 is bid. | 0:38:05 | 0:38:06 | |
30? £30,000. Thank you. £30,000 is bid. | 0:38:06 | 0:38:10 | |
£30,500, thank you. £30,500. 1? | 0:38:10 | 0:38:13 | |
1 I've got. £31,000 I have. | 0:38:13 | 0:38:16 | |
Looking for £31,500, ladies and gentlemen. | 0:38:16 | 0:38:19 | |
OK. £31,000. If there isn't any advance on £31,000... | 0:38:19 | 0:38:24 | |
OK, ladies and gentlemen, I can't do anything on that level. | 0:38:24 | 0:38:27 | |
I'm looking for £31,500 to do anything. | 0:38:27 | 0:38:30 | |
£31,500. There we are, sir. | 0:38:30 | 0:38:31 | |
Where was you when I was asking in the first place? | 0:38:31 | 0:38:35 | |
There we are, then. £31,500. | 0:38:35 | 0:38:38 | |
Sir, what's your bidder's number? | 0:38:38 | 0:38:40 | |
That successful bidder, slightly hidden from view, was Dennis, | 0:38:40 | 0:38:44 | |
who was at the auction with his business partner, Mark. Dennis comes from Cardiff, | 0:38:44 | 0:38:48 | |
and they run a central heating, kitchen and bathroom company. | 0:38:48 | 0:38:51 | |
Very handy! | 0:38:51 | 0:38:53 | |
I met Dennis back at the house to find out why he wanted it. | 0:38:54 | 0:38:59 | |
-Dennis, congratulations. The property is yours, sir. -I know. -Are you shocked? | 0:38:59 | 0:39:04 | |
Very shocked. It was a bit of a surprise...but happy. | 0:39:04 | 0:39:09 | |
-So why was it a surprise? Because you were actually bidding for this. -We weren't going | 0:39:09 | 0:39:13 | |
to go for this one at first. We were going to go for another lot. | 0:39:13 | 0:39:16 | |
But that one went for a bit more than what we can bid up to, so my business partner | 0:39:16 | 0:39:20 | |
asked, "Why don't we go for this one?" We hadn't even seen | 0:39:20 | 0:39:23 | |
the property yet. It was only just down the road from the other one, so he said, "Let's go for it!" | 0:39:23 | 0:39:27 | |
So you took a bit of a gamble on auction day, didn't you? | 0:39:27 | 0:39:30 | |
-A very big gamble. -Were you relieved to see it's actually in an OK state? -Yes. | 0:39:30 | 0:39:33 | |
We'll have a look round and see what needs doing and what can be done to improve it a little bit. | 0:39:33 | 0:39:38 | |
And why have you bought this? | 0:39:38 | 0:39:40 | |
Well, just as an investment, really, for me and my business partner. | 0:39:40 | 0:39:44 | |
-So, are you looking to sell this on or rent it out? -Um, probably rent it | 0:39:44 | 0:39:47 | |
for the first couple of years and maybe sell it on. Or even just keep | 0:39:47 | 0:39:50 | |
on paying off the mortgage, and then happy days later on. There'll be | 0:39:50 | 0:39:54 | |
a little more scope to invest in another one. | 0:39:54 | 0:39:58 | |
# Oh, happy, happy days | 0:39:58 | 0:40:01 | |
# I wish for you... # | 0:40:03 | 0:40:06 | |
Happy days indeed! Dennis and his business partner, Mark, | 0:40:06 | 0:40:09 | |
plan to spend just £5,000 on this three-storey terrace, | 0:40:09 | 0:40:14 | |
making a total outlay of £36,500. | 0:40:14 | 0:40:17 | |
They hope to get about £5,000 rental income a year - | 0:40:17 | 0:40:21 | |
a yield of over 12%. What are the plans? | 0:40:21 | 0:40:25 | |
Well, we're going to change the kitchen, because that's a little bit | 0:40:26 | 0:40:30 | |
run-down. Redo the bathroom and the toilet. We're thinking of | 0:40:30 | 0:40:34 | |
-also putting a new toilet upstairs. -You say "change the kitchen" - | 0:40:34 | 0:40:38 | |
do you mean move the kitchen, or just update the kitchen? | 0:40:38 | 0:40:40 | |
Update the kitchen. Update it. Cos the one at the moment is run-down. | 0:40:40 | 0:40:44 | |
See, I think that will be a great space for a utility area. | 0:40:44 | 0:40:48 | |
A much bigger bathroom with a downstairs toilet, a utility area, and then | 0:40:48 | 0:40:52 | |
you've got yourself a nice, bright kitchen, dining, sitting area. | 0:40:52 | 0:40:57 | |
Sounds good. I'll just put a few figures together and we'll see what | 0:40:57 | 0:41:00 | |
the expense is. But I'll consider it. | 0:41:00 | 0:41:04 | |
Now, what about the lean-to downstairs? Because you've got | 0:41:04 | 0:41:07 | |
-an outside toilet. -Yes. Again, it's down to the drainage areas. I think | 0:41:07 | 0:41:11 | |
if we just do it up, replace the toilet. If we can move it, we will, | 0:41:11 | 0:41:15 | |
-but if we can't, we'll just leave it there where it is. -Aargh! | 0:41:15 | 0:41:18 | |
You might be leaving the toilet outside?! I actually had a bit | 0:41:18 | 0:41:21 | |
of a shiver! I opened the door and it was like, "I can't imagine going to the toilet out here!" | 0:41:21 | 0:41:26 | |
Like I said, we'll just do the figures and see | 0:41:26 | 0:41:28 | |
what the costs are. But if we're going to rent it first, we'll just do that brush-up. | 0:41:28 | 0:41:32 | |
Oh, Dennis, I think it'll take a bit more than a brush | 0:41:32 | 0:41:36 | |
to get this place sparkling. | 0:41:36 | 0:41:38 | |
But I think I've made my point. Dennis and his partner have set | 0:41:41 | 0:41:45 | |
an eight-week deadline, which they do want to meet. That's partly why | 0:41:45 | 0:41:49 | |
a more basic job is on the cards. Still, it's an exciting time for Dennis. | 0:41:49 | 0:41:54 | |
-Is this your first time being a landlord? -It's the first time | 0:41:54 | 0:41:57 | |
being a landlord, but I'm up for a challenge. I'll do anything. | 0:41:57 | 0:42:00 | |
-And it's the first house you've renovated? -First house I've renovated. | 0:42:00 | 0:42:04 | |
-Are you quite nervous? -Very nervous, but I just can't wait. | 0:42:04 | 0:42:07 | |
-Just can't wait. -Dennis, good luck with this property. I really hope | 0:42:07 | 0:42:10 | |
-it goes well. Stay confident. -OK, thanks. Thank you. | 0:42:10 | 0:42:14 | |
Well, Dennis and I disagree on what to do here. It's one thing | 0:42:16 | 0:42:21 | |
making the place tidy, but the layout at the moment - well, it's just not working for me at all. | 0:42:21 | 0:42:26 | |
I know he needs to keep his costs down, | 0:42:26 | 0:42:28 | |
but that outside loo?! Uh-uh! Has to go. | 0:42:28 | 0:42:30 | |
You can see if it does later on in the programme. | 0:42:30 | 0:42:33 | |
All our buyers hope their journey has been worth it. They took | 0:42:36 | 0:42:39 | |
-the right turns and avoided those pitfalls. -Yes. Decisions, decisions. | 0:42:39 | 0:42:44 | |
Did they make the right ones? Time to go back and find out. | 0:42:44 | 0:42:47 | |
Back now to Ramsgate in Kent, and this rabbit warren of a property | 0:42:49 | 0:42:53 | |
in a conservation area. It consisted of 12 commercial units and eight fire-damaged flats, | 0:42:53 | 0:42:59 | |
which husband and wife team Chris and Victoria | 0:42:59 | 0:43:02 | |
bought at auction for £225,000. There was plenty to do here, | 0:43:02 | 0:43:07 | |
but the couple were approaching it with their eyes wide open. | 0:43:07 | 0:43:11 | |
I think even if the fires hadn't happened, we'd had to have done | 0:43:11 | 0:43:15 | |
some alterations and refurb here anyway. So the fire has just caused us | 0:43:15 | 0:43:19 | |
a few more problems, but it's made the price a lot better than it would be if this was an easy refurb. | 0:43:19 | 0:43:24 | |
The total budget of the purchase fees and the work of £500,000 | 0:43:26 | 0:43:31 | |
was being provided by Russian business partners Anna, on the left, and her husband, | 0:43:31 | 0:43:35 | |
Alexander, who wasn't there when I visited the first time. | 0:43:35 | 0:43:38 | |
That meant around £27,000 for the renovations, and an eight-month timescale was the aim. | 0:43:40 | 0:43:45 | |
We're back two-and-a-half years later, but Chris and Victoria | 0:43:48 | 0:43:52 | |
are not. They've moved on to another project, | 0:43:52 | 0:43:55 | |
and Anna and her husband Alexander have taken over. | 0:43:55 | 0:43:58 | |
The uninhabitable eight flats have been completely refurbished. | 0:44:04 | 0:44:08 | |
Clearly, it's been a big job. | 0:44:15 | 0:44:17 | |
Well, if I had a hat, I'd take it off to Alexander and Anna. | 0:44:25 | 0:44:29 | |
The flats are looking spick and span. | 0:44:30 | 0:44:33 | |
They may have lost some of their period features, but it's hard to | 0:44:33 | 0:44:36 | |
believe this enormous undertaking is the couple's first foray | 0:44:36 | 0:44:41 | |
into property development. | 0:44:41 | 0:44:42 | |
As Alexander doesn't speak English, it's Anna who explains | 0:44:44 | 0:44:47 | |
the challenges they faced. | 0:44:47 | 0:44:50 | |
This was quite an ambitious and big project, but by the end... | 0:44:50 | 0:44:55 | |
It did take quite a long time. It was more than two years, | 0:44:55 | 0:45:01 | |
and by the end, we coped well, I think. | 0:45:01 | 0:45:05 | |
So now it's almost done. | 0:45:06 | 0:45:09 | |
Where once there were eight flats, now there are nine, thanks to | 0:45:11 | 0:45:14 | |
a one-bed-flat-sized bit of space they found on the first floor. | 0:45:14 | 0:45:19 | |
Well, I did say it was a bit of a rabbit warren! | 0:45:19 | 0:45:21 | |
Alexander and Anna haven't tackled the commercial units yet, but they | 0:45:24 | 0:45:27 | |
do have a cunning plan. | 0:45:27 | 0:45:30 | |
We would like to apply to have these offices | 0:45:30 | 0:45:34 | |
converted to flats, and now, at the moment, we are waiting for a decision. | 0:45:34 | 0:45:39 | |
If they do get permission to create two more flats, that would give them | 0:45:42 | 0:45:45 | |
11 flats in total. Some they'd sell, some they'd rent out. | 0:45:45 | 0:45:52 | |
Of the nine flats they've almost completed, | 0:45:52 | 0:45:54 | |
three of them are two-bedroom flats | 0:45:54 | 0:45:56 | |
and six of them are one-beds. | 0:45:56 | 0:45:58 | |
Some of those are more like studio flats, | 0:46:02 | 0:46:04 | |
but Anna has a particular favourite. | 0:46:04 | 0:46:06 | |
I think the top flat. | 0:46:08 | 0:46:10 | |
It definitely looks very different | 0:46:10 | 0:46:15 | |
and very lovely. | 0:46:15 | 0:46:17 | |
It's my favourite, because you can see the sea front and harbour | 0:46:17 | 0:46:21 | |
from this flat. I think people will be quite happy to live there. | 0:46:21 | 0:46:26 | |
So it's taken them longer than they'd hoped - | 0:46:30 | 0:46:32 | |
almost two years longer. | 0:46:32 | 0:46:33 | |
The original budget was around £275,000. | 0:46:33 | 0:46:37 | |
How much have they ended up spending? | 0:46:37 | 0:46:40 | |
That was about £250,000. | 0:46:42 | 0:46:45 | |
That brings the total outlay on the project, | 0:46:45 | 0:46:48 | |
including the £225,000 purchase price, to £475,000. | 0:46:48 | 0:46:54 | |
There's still a bit to do, and those commercial units to think about. | 0:46:54 | 0:46:59 | |
But we asked two local property experts to cast an eye over the work | 0:47:01 | 0:47:05 | |
they've done so far. | 0:47:05 | 0:47:06 | |
Coming back today, I'm absolutely amazed | 0:47:06 | 0:47:09 | |
at the transformation of this property. | 0:47:09 | 0:47:11 | |
It really has gone from a burnt-out wreck | 0:47:11 | 0:47:14 | |
into some really very nice flats, and I think it's very good for the area. | 0:47:14 | 0:47:19 | |
The layout of the properties is very unusual. | 0:47:19 | 0:47:21 | |
My experience tells me that won't be particularly popular | 0:47:21 | 0:47:25 | |
with some buyers. But if they're priced to reflect that, then I'm sure they'll sell. | 0:47:25 | 0:47:29 | |
So if Alexander and Anna do go down that resale route, | 0:47:29 | 0:47:33 | |
what do the experts think the flats could fetch? | 0:47:33 | 0:47:36 | |
There are some studios and one-bedrooms. I would value those | 0:47:37 | 0:47:41 | |
between £55,000 and £65,000. The two-bedroom apartments I would say | 0:47:41 | 0:47:45 | |
are going to be somewhere between £80-85,000. | 0:47:45 | 0:47:48 | |
The one-bedroom flats | 0:47:48 | 0:47:50 | |
would be worth around about £65,000. | 0:47:50 | 0:47:53 | |
And the two-bedrooms, we'd be looking at around about £85,000. | 0:47:53 | 0:47:57 | |
Those valuations could mean a pre-tax profit of between £95,000 | 0:48:00 | 0:48:06 | |
and £170,000, minus the usual expenses, | 0:48:06 | 0:48:08 | |
if they sell all the nine flats created so far. | 0:48:08 | 0:48:11 | |
That's a pretty healthy return, if you ask me. | 0:48:11 | 0:48:15 | |
But what about the potential rental income from the flats? | 0:48:15 | 0:48:20 | |
A one-bedroom flat in this area | 0:48:20 | 0:48:22 | |
I would imagine would be in the region of about £400 per calendar month. | 0:48:22 | 0:48:26 | |
If we're looking at the two-bedrooms, which are always in high demand, | 0:48:26 | 0:48:30 | |
then you're going to be looking probably at around about | 0:48:30 | 0:48:33 | |
£500 per calendar month. | 0:48:33 | 0:48:35 | |
I think the studios and one-bedrooms | 0:48:35 | 0:48:38 | |
will be circa £400 per calendar month. | 0:48:38 | 0:48:40 | |
The two-bedrooms could get somewhere around £500 per calendar month. | 0:48:40 | 0:48:44 | |
Letting the six one-bedroom flats at £400 per month, | 0:48:48 | 0:48:52 | |
and three two-beds at £500 a month | 0:48:52 | 0:48:55 | |
would give Alexander and Anna a yield of just under 10%. | 0:48:55 | 0:48:59 | |
On top of that, there's the potential for more income, | 0:48:59 | 0:49:03 | |
depending on what they end up doing with the commercial units. | 0:49:03 | 0:49:07 | |
So it's win, win, win for these two first-time developers, | 0:49:07 | 0:49:10 | |
whichever way you look at it. | 0:49:10 | 0:49:12 | |
This was the first project for us, so, hopefully, not the last. | 0:49:14 | 0:49:19 | |
Earlier in the programme, we were in South Wales, | 0:49:23 | 0:49:26 | |
one mile from Mountain Ash in the village of Penrhiwceiber. | 0:49:26 | 0:49:29 | |
That's where Dennis, a gas fitter | 0:49:29 | 0:49:31 | |
from Cardiff, bought this three-bed mid-terrace for £31,500. | 0:49:31 | 0:49:36 | |
He bought the house as a joint first investment purchase | 0:49:38 | 0:49:42 | |
with his friend and colleague, Mark. | 0:49:42 | 0:49:45 | |
I thought this house, spread over three levels, needed configuring, | 0:49:45 | 0:49:49 | |
not least because the only loo was on the lower ground floor | 0:49:49 | 0:49:52 | |
in a lean-to. Ugh! | 0:49:52 | 0:49:53 | |
The dungeon kitchen definitely needed a rethink, and I hoped Dennis would see it my way. | 0:49:53 | 0:49:59 | |
-You say "change the kitchen" - do you mean move the kitchen, or just update the kitchen? -Update it. | 0:49:59 | 0:50:05 | |
See, I think that would be a great space for a utility area. You know, | 0:50:05 | 0:50:09 | |
a much bigger bathroom with a downstairs toilet, a utility area, | 0:50:09 | 0:50:13 | |
and then you've got yourself a nice, bright kitchen, dining, sort of sitting area. | 0:50:13 | 0:50:17 | |
Sounds good. I'll just put a few figures together and then we'll see what the expense is. | 0:50:17 | 0:50:23 | |
Would the numbers stack up to make the most of this house? | 0:50:23 | 0:50:27 | |
Three and a half months later, we've come back to find out. | 0:50:29 | 0:50:32 | |
This looks promising... | 0:50:32 | 0:50:34 | |
Just look at the new appliances and units! | 0:50:37 | 0:50:39 | |
That serving hatch in the hall has been filled in, | 0:50:42 | 0:50:44 | |
and there's a new door to the living room. | 0:50:44 | 0:50:47 | |
Down on the lower ground level, I'm glad to see Dennis took my advice. | 0:50:53 | 0:50:56 | |
Look at this kitchen. | 0:50:56 | 0:50:59 | |
The wall between the former kitchen and original bathroom | 0:51:03 | 0:51:05 | |
has been removed, creating a much bigger space for the new bathroom. | 0:51:05 | 0:51:10 | |
As you can see, we've taken Lucy's advice, and I've converted | 0:51:10 | 0:51:13 | |
the old dining room into a kitchen-cum-diner, | 0:51:13 | 0:51:16 | |
and we had to make good a wall where we took the old fireplace out, | 0:51:16 | 0:51:20 | |
so we can fit the kitchen in and the services. | 0:51:20 | 0:51:22 | |
So what we did with the old kitchen is make that into a luxury bathroom. | 0:51:22 | 0:51:27 | |
As you can see, this is the bathroom. Took a couple of weeks to do. | 0:51:29 | 0:51:33 | |
We had to redo all the walls, retile everything, top to bottom. We fitted | 0:51:33 | 0:51:37 | |
a new toilet, bath, and the shower and wash-hand basin. | 0:51:37 | 0:51:41 | |
With all this extra effort we've put into this house, we hope that it'll help to sell it. | 0:51:41 | 0:51:46 | |
I think I might have gone for a bigger wash-hand basin | 0:51:49 | 0:51:51 | |
in what is now a large bathroom. | 0:51:51 | 0:51:53 | |
I don't think you really need an over-bath shower | 0:51:53 | 0:51:56 | |
as well as a shower cubicle, but the new loo is 100% better | 0:51:56 | 0:52:00 | |
than being in the lean-to. Talking of which... | 0:52:00 | 0:52:03 | |
The outside toilet is no longer going to be there. It's going to be a little utility room, | 0:52:04 | 0:52:08 | |
for the washing machine and dishwasher, but we have put a new toilet in the new bathroom, | 0:52:08 | 0:52:13 | |
and we have put one upstairs, so if anybody does want to get up in the middle of the night | 0:52:13 | 0:52:17 | |
to go to the toilet, they haven't got to go down two flights of stairs. | 0:52:17 | 0:52:20 | |
It saves a long journey, and somebody falling downstairs in the middle of the night, half-asleep! | 0:52:20 | 0:52:25 | |
The loo and wash basin have still to be installed. Mind you, | 0:52:25 | 0:52:28 | |
Dennis and Mark did face a challenge getting all the pipework up there. | 0:52:28 | 0:52:32 | |
But the fact they managed to keep the three original bedrooms | 0:52:33 | 0:52:37 | |
the same size should have a positive impact on the sale value of this house. | 0:52:37 | 0:52:42 | |
Back on the ground floor, remember that bouncing wall? | 0:52:42 | 0:52:45 | |
You can kind of, like, bounce off the walls in this house, literally! | 0:52:45 | 0:52:48 | |
That was caused by plasterboard that had not been fixed properly. | 0:52:48 | 0:52:52 | |
Now it's all been replaced, so no-one will be bouncing off the walls in here now. | 0:52:52 | 0:52:57 | |
Apart from the tiling and plastering, Dennis and Mark | 0:52:57 | 0:53:00 | |
have done all the other work here. | 0:53:00 | 0:53:02 | |
But finding time to work on the house | 0:53:02 | 0:53:04 | |
had taken a bit longer than they anticipated. | 0:53:04 | 0:53:07 | |
It is the first little venture we've done together, and, um...it's been | 0:53:07 | 0:53:11 | |
a bit of an experience. Tackled it a little bit slower than | 0:53:11 | 0:53:15 | |
what we should have, but I think it's going to turn out fine at the end. | 0:53:15 | 0:53:19 | |
They've actually spent just three weeks on the project, fitting it in | 0:53:19 | 0:53:23 | |
around their full-time businesses. The front of the house has been | 0:53:23 | 0:53:26 | |
repainted, and they plan to put a couple of fence panels and some turf | 0:53:26 | 0:53:30 | |
at the back. So how's the budget holding out? | 0:53:30 | 0:53:33 | |
My budget at the moment is about £5,000, but we did say | 0:53:34 | 0:53:37 | |
at the beginning that it's going to be about £5-6,000, | 0:53:37 | 0:53:40 | |
so I've still got at least another £1,000 to spend, so I think I should be well within budget. | 0:53:40 | 0:53:46 | |
Keeping the budget to £6,000 | 0:53:48 | 0:53:50 | |
on top of the £31,500 that Dennis and Mark paid at auction | 0:53:50 | 0:53:54 | |
would take their total investment here to £37,500. | 0:53:54 | 0:53:58 | |
We invited two local estate agents to have a look around | 0:54:00 | 0:54:04 | |
and give us their opinion of the property and its potential resale figure, | 0:54:04 | 0:54:08 | |
as Dennis and Mark are intending to sell. | 0:54:08 | 0:54:10 | |
The overall progress of the property is coming along very, very nicely. | 0:54:12 | 0:54:16 | |
There are some nice benefits, | 0:54:16 | 0:54:17 | |
certainly to the first floor, | 0:54:17 | 0:54:19 | |
with a toilet and wash-hand basin. Ideal for families. | 0:54:19 | 0:54:22 | |
The decision by the owner | 0:54:22 | 0:54:24 | |
to remove the kitchen from its original position | 0:54:24 | 0:54:27 | |
and to place it towards the rear of the property has been an inspired choice. | 0:54:27 | 0:54:31 | |
The main attraction to this property is certainly | 0:54:31 | 0:54:33 | |
that it's over three tiers. | 0:54:33 | 0:54:34 | |
You've got your lower ground floor, which is your nice kitchen and bathroom area, | 0:54:34 | 0:54:38 | |
and certainly good living space to the ground floor and first floors. | 0:54:38 | 0:54:42 | |
If Dennis and Mark decided to let rather than sell the property, | 0:54:42 | 0:54:46 | |
what rental income could they earn? | 0:54:46 | 0:54:48 | |
There's a large demand for rental properties in this location, | 0:54:48 | 0:54:51 | |
and you'd look to achieve £325 per calendar month. | 0:54:51 | 0:54:55 | |
Once the property's finished, I would advise a rental market value | 0:54:55 | 0:54:59 | |
of £400 per calendar month. Slightly higher than the average for the street here, | 0:54:59 | 0:55:03 | |
but the owner has endeavoured to create something a little bit different here, | 0:55:03 | 0:55:07 | |
and it will fetch a slightly higher value. | 0:55:07 | 0:55:09 | |
Those incomes could produce a yield of between 10 and 12% | 0:55:10 | 0:55:14 | |
if the higher figure was achieved. | 0:55:14 | 0:55:17 | |
I'd like the £400 a month, but we were expecting almost £380, to | 0:55:17 | 0:55:20 | |
be honest with you. | 0:55:20 | 0:55:22 | |
I don't like the sound of the other one, £325. No, that's a no-goer. | 0:55:22 | 0:55:26 | |
Not for the amount of work that we've done in this property. | 0:55:26 | 0:55:30 | |
How much would the house be marketed for - | 0:55:30 | 0:55:33 | |
more than the £37,500 that Mark and Dennis have invested? | 0:55:33 | 0:55:37 | |
On completion of the works, we'd suggest a market figure of £45,000, | 0:55:39 | 0:55:43 | |
with a realistic figure of £42,000 being achieved. | 0:55:43 | 0:55:47 | |
There is a ceiling price in this area. | 0:55:47 | 0:55:49 | |
In my opinion, this house will probably break that ceiling price slightly. | 0:55:49 | 0:55:53 | |
Once the property is finished, I would advise | 0:55:53 | 0:55:55 | |
a market value of between £50-55,000. | 0:55:55 | 0:55:59 | |
That wide valuation range could generate a gross profit for them | 0:55:59 | 0:56:04 | |
of between £4,500 and £17,500 before taxes and expenses. | 0:56:04 | 0:56:09 | |
The top valuation I think is the better one to have, | 0:56:12 | 0:56:15 | |
but realistically, I think it might go for around £50,000 to £48,000. | 0:56:15 | 0:56:21 | |
Finding the time to work on this first joint development project | 0:56:21 | 0:56:24 | |
has proved a challenge for Dennis and Mark, | 0:56:24 | 0:56:26 | |
and there's still more to do. | 0:56:26 | 0:56:28 | |
So, in the end, what does Dennis think of my advice? | 0:56:28 | 0:56:31 | |
Considering it's the first time we've done this, | 0:56:33 | 0:56:35 | |
it's nice to take somebody else's advice on board who's used to doing it. | 0:56:35 | 0:56:39 | |
100% brilliant. | 0:56:39 | 0:56:40 | |
Well, it's the end of the road for the buyers on today's programme, | 0:56:44 | 0:56:48 | |
but there are plenty more where they came from. | 0:56:48 | 0:56:50 | |
So for a chance to follow what happens to them, join us next time for more Homes Under The Hammer. | 0:56:50 | 0:56:55 | |
-See you then. -Goodbye. -Bye. | 0:56:55 | 0:56:57 | |
Subtitles by Red Bee Media Ltd | 0:57:02 | 0:57:05 |