Episode 1 Homes Under the Hammer


Episode 1

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Transcript


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Martin and I never cease to be amazed.

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Since we started making this programme,

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we have seen hundreds of people take the plunge and buy at auction.

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Yes, and we love bringing you the stories behind them, and there's more today.

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But it can be a bumpy ride, so fasten your seatbelts as we head for the auctions.

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This programme isn't just about bricks and mortar. It's about real people with a tale to tell.

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But we never quite know how their stories will turn out.

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No. So will today's properties be a nightmare or a dream?

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These are the ones we followed to the auction.

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This far from standard Stoke-on-Trent terrace

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makes me think big.

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The moment you walk in, it just has that extra element of grandeur.

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There's a lot of property for your money in Ramsgate, Kent, but don't expect to park nearby.

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Sorry - you'll just have to pay at the meter.

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And in South Wales, when it comes to this mid-terrace,

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it's Tigger time!

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You can kind of bounce off the walls in this house, literally!

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All of these properties went to auction.

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We'll find out who bought them and what they paid for them when they went under the hammer.

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Yours, sir.

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I'm visiting Stoke-on-Trent, also known as the Potteries, because of

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its connection with the ceramics industry.

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# Take a little clay Put it on the wheel

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# Make it in the shape you want it in... #

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This area of Stoke is called Smallthorne,

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a former mining community, although there are few signs of the industry left.

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It's about three miles from Stoke city centre,

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and the property I'm here to see is just round the corner.

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It's on a street of terraces,

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all built at the beginning of the 1900s.

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And here it is - three-bedroom end-of-terrace.

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Had a guide price of £35,000, and it looks like a pretty substantial property for that.

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That's interesting. This house seems to be much bigger

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than the other ones on the street, and my guess is that maybe this was the foreman's house

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for the local colliery, because the moment you walk in,

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it just has that extra element of grandeur,

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which maybe some of the other terraces on this street haven't got.

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This big archway, stuff like that.

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A front reception room. An interesting-looking fireplace there.

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Lots of light coming in, because you are this end-of-terrace, which is really nice.

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And then through into a central living room - again,

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with a fireplace, which is good, and an odd place for the stairs. It actually

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works OK, but it's not something I've seen that often.

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Staircase here leading to the bedrooms.

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Let's see if it continues in this light.

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A bit of cosmetic work and redecoration is needed

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to bring this place up to date. But it seems to be in reasonable condition

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so far, and it's certainly spacious.

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Well, the kitchen is a good size,

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but it obviously needs a bit of tender loving care.

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Well, actually ripping out and starting again. But at least

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you've got the space to play with. But then a very traditional design here -

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through the kitchen, a little bit of a utility area, which has got

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the hot water cylinder, and you come to the only bathroom. It's the loo,

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it's the bathroom - it's not ideal.

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A lot of the terraces round here will probably have this,

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but I wonder if there's a better place for it to be.

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Let's check upstairs.

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Downstairs bathrooms may be quite common in older terraces, but they

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can definitely put off some buyers. After all, who wants to go trudging

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downstairs in the middle of the night?

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# Move it up Move it

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# Move it up Move it up... #

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So let's hope there's a place of more convenience....

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So up here - front bedroom there. That might be one option.

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But I think a much more viable place for the bathroom is here,

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in this middle bedroom. It's big enough, I think, to divide, literally, in two.

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You've got two windows, so each room would have its own,

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and then make this area here

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the bathroom. The reason why I think that's even more

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of a positive thing to do is the fact that this is an exterior wall.

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It comes to about here. The rest of this is the rest of the house, but

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down there is the courtyard. So that's the exterior wall, so you've

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got somewhere where you can very easily get out your soil pipes,

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your drainage, etc. So that's something you need to consider.

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It would get the bathroom upstairs, you'd have more space in the kitchen,

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and I think it would be a very good thing to do.

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If you did divide the middle bedroom, you'd still be left with

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two good-sized doubles.

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Plus, there's the third single bedroom at the back.

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So, what does a local estate agent think of this house that went

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to auction guided at £35,000-plus?

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Is moving the bathroom a good idea?

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I would say putting the bathroom upstairs

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for this size of house would add value.

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Particularly due to the fact you can retain

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the three bedrooms, as opposed to losing a bedroom. It also gives the opportunity

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for a utility downstairs, so that would be the way to go.

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How much value would an upstairs bathroom add?

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Moving the bathroom upstairs alone, without the refurbishments, would add at least

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£5,000, in my opinion.

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Is there anything else that needs doing?

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The main thing is obviously decor, improvements to the kitchen.

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The central heating system looks dated, so possibly that needs

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to be replaced, and maybe a full rewire would also be needed.

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Once renovated, would this let easily?

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The rental market in this area is very strong. I would imagine rental income in he region of

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£450 per calendar month.

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So rental's a possibility. But how much could this house,

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that was guided at £35,000, sell for after a full refurbishment?

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With the bathroom upstairs, fully modernised, I would recommend

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an asking price in the region of £80-£85,000.

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Well, I think this is a great property, especially at that guide price.

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In fact, it's a bit of a gem.

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Let's see who spotted this particular treasure when it went under the hammer.

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Lot number 10. This is a traditional end-terrace house.

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What shall we say for lot number 10? So it's £25,000 to start me.

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20. Start me at 20, then.

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20 bid, standing left. £20,000.

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25, can I say now? £25,000.

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£30,000, standing. £30,000 standing at the front. 35?

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£35,000.

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There was a lot of interest on auction day.

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We rejoin the bidding at £49,000.

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£49,000. The bid's in the aisle at £49,000. Are we all done?

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£49,000.

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£50,000, seated. At £50,000. 51?

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Half, he's saying. £50,500.

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51.

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Half.

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Shaking his head. £51,500. Still with you in the aisle, sir.

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£51,500. Are we all done now?

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£51,500, then, first time.

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£51,500 second time.

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Third and final time at £51,500...

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It's your lot, sir. Well done.

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That final bid of £51,500 was made by local man Ian.

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He's roped in his son Neil to help him with the refurbishment. I met them both back

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in Smallthorne to find out their plans.

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-Ian, Neil, good to meet you both.

-Hi.

-Hi.

-Congratulations.

-Thank you very much.

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-I don't know whether it is.

-Why? What are you concerned about?

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Well, we didn't actually look at it, so...

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Why? Why, why, why, why?!

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Well, I was looking at a house in Belper,

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where Neil lives, and that fell through. And we'd only got

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a couple of days before the auction, so we came round on the Sunday

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and had a look through the windows, and then bought it on the Monday.

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-So, what do you think now you've had a look?

-It's not as bad... I was hoping

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I wasn't going to have to do anything, but you don't get that sort of luck, so...

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It's not as bad as I was expecting.

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-So, do you work together a lot?

-No, first one.

-Yeah.

-And is this a joint venture?

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-No.

-Not yet.

-What?

-What he needs to look at is...

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I love the way he's talking to you as if you're not here!

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-He still thinks you're four years old! Yes!

-I sometimes feel like I'm four years old.

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What he needs to think about is that he's more than likely going to be

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-part of his inheritance, so you know...

-Ah!

-It's a bit of an incentive.

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-Right. But what will your involvement be, Neil?

-Basically,

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I'm going to do most of the labour, put the central heating in,

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look at the electrics, get the plasterers in, bathrooms in, kitchens.

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-And what about you, Ian?

-Me?

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-I shall be carrying on with my day job.

-Which is what?

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I do the road traffic collision investigations for insurance companies.

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-So if somebody has an accident, you go along and...

-Yeah. The majority of the stuff we do

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now is fraudulent claims. Keeps you busy.

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# Well, get busy, busy, busy, busy, baby

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# Busy, busy, busy as a bee... #

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It seems as though if his father has anything to do with it,

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Neil's the one who's going to be busy, combining work on the place

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along with his day job. He'll have his dad's experience to call on, though,

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as Ian dabbled in property some years ago, but sold up.

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Now, with his eye on retirement and beyond, he's ready, with his son's help,

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to get back to development.

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# Well, get busy, busy, busy, busy, baby... #

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So, Neil, you'll be picking up the pieces of this. What kind of

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-experience have you got?

-I run my own business. I'm a heating engineer,

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-do air conditioning, oil-fired heating.

-Air conditioning?

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-Do we need that a lot up in Stoke?

-You'd be surprised!

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-It's got a fan.

-It's got a fan - exactly!

-Don't need air conditioning -

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-open the windows!

-Open the windows.

-It's mainly commercial properties

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-I put the air conditioning in.

-Fantastic.

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So you're going to be doing the majority of the work. Will you get

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-people in to do it?

-Yeah.

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I'll be physically hands-on, but we'll get plasterers in, and,

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as far as the plumbing goes, and decorating and doing the building work,

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there's not really much I've not done myself.

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But Ian and Neil aren't planning just to do a simple cosmetic refurb.

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They're also planning to rejig the layout.

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Moving the bathroom upstairs,

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new kitchen, damp-proof, obviously, cos it's a little bit iffy in places,

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-Erm...I'm going to split the middle bedroom.

-Right.

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Put a bathroom in one side. Single bedroom on the other side.

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By the way, this is his idea.

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-It's not mine.

-Right. And it's a good idea, so well done!

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I think the bathroom at the back, there's not many people, particularly families,

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that want a bathroom downstairs, so putting the bathroom upstairs will sort that problem.

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And it'll give us a bit of free space at the back of the property,

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-so we can make the kitchen into a kitchen-diner.

-Nice idea.

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A utility room at the back, so all the white goods can go into the utility room.

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So talk me through the numbers. What kind of amount of money are you

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-going to have to plough into it?

-£10-15,000, I would think.

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-What do you think?

-I think he'd like it to be £10-15,000, but I think

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-realistically, it'll be around £20,000.

-You're going to have to sharpen your pencil!

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-This is where the free labour comes in.

-And timescale -

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-is that a contentious issue or not?

-Not really. Erm...two, three months.

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-Something like that, realistically.

-Well, congratulations and good luck

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-with it. Really nice to meet you both.

-Thanks very much.

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I look forward to seeing how you get on.

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Well, being an accident investigator, Ian is pretty used to

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looking at disasters. Still, I am quite surprised that he bought

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this place without viewing it first. On this occasion, though, I think

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he might have got away with it. It's a good house, and with Neil's help,

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he should be able to put it back into some good condition.

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You can find out how he gets on - or THEY get on - later in the show.

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Today I'm on the south coast, in a seaside port with Royal credentials.

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# Somewhere

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# Beyond the sea... #

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Ramsgate became Royal Ramsgate when King George IV was impressed

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by the welcome he received there in 1820. Nowadays, the harbour area has been spruced up

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and the town's links to London - only an hour and a half by train -

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make it increasingly popular.

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Well, just a short walk from the Royal Harbour and I'm here today

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on Harbour Street to see the auction lot. Now, the question is,

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will the property be a port in a stormy economic climate, or will it be harbouring a secret?

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Well, this is it - 12 commercial units and eight flats on top.

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It's all in here, and the guide, £180-£200,000.

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Yes, it's a lot of property for the money, but the layout won't float

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everyone's boat. Not only is it all above a pub, the retail spaces

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are in the first floor - hardly ideal. However, they look in pretty good condition,

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and noise from the pub isn't going to be an issue for these businesses.

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So far, so good.

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Unfortunately, this is where things take a decidedly dark turn.

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Not one but two fires have ripped through the flats,

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and there's extensive damage.

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Fortunately, no-one was seriously injured, but they have been left

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in a sorry state.

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You can see it is completely fire-damaged.

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Now, it hasn't affected the structure, apparently,

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but to be safe, I would have a structural engineer in here to assess this damage.

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It'll also give you an idea of how much you need to spend renovating this place.

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If the building is structurally unsound, your budget could spiral out of control.

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It's not just the structure that needs checking by professionals.

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Fire and the accompanying water damage can mean compromised

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electrics and plumbing. It's easy to see how this fire spread.

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There are eight flats spread over three floors - four flats on the first floor,

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three flats on the second floor and a third-floor flat with a balcony.

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It's like a rabbit warren, with lots of little corridors. The layout is

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really confusing. This isn't just a renovation job,

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it's a reconfiguration one too. On the plus side,

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there are some very spacious rooms up here,

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and the flat on the very top floor has plenty of light

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and terrific views.

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Before I get too excited, though, there's one important consideration.

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This property is in a conservation area. That means you have to obtain

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permission before making any changes which would normally be permitted

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elsewhere to ensure alterations do not detract from the area's appearance.

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Now, these changes include certain types of cladding,

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inserting dormer windows, and putting up satellite dishes

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which are visible from the street. The local authorities can also make

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further restrictions, including painting the house a different colour,

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changing distinctive doors or windows.

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Conservation area designation is a means of recognising the importance

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of the quality of the area as whole,

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as well as protecting the individual buildings.

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Restoration rather than straightforward replacement

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can add a lot to your costs, so you really do need to do your homework

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when it comes to a conservation area.

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Much as this central location seems handy,

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I've spotted another drawback.

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So there'll be plenty of parking with this huge property, right?

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Parking for the residents, parking for the small businesses?

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Well, no, I'm afraid not. No parking spaces at all.

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Sorry - you'll just have to pay at the meter.

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To make something of this property is going to take a healthy dose

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of imagination, but I do think there's potential here.

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We asked a local estate agent to take a look around

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and see if he agreed.

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This property is in an absolutely excellent location,

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in a pedestrianised street.

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It's very close to the harbour, which is absolutely wonderful.

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Lots of bars and restaurants around, so it's really situated in a super location.

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I really do agree. The setting is fantastic. But beyond dealing

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with the fire damage, what does this property need?

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This property's quite unusual,

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in that it's got eight flats laid out in a higgledy-piggledy manner at the moment.

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And I think, realistically, you should be reducing that number down

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to maybe five, possibly six, and that would really improve the layout.

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Sounds like a good plan. And what might those flats fetch

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on the open market?

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It would be nice to get two-bedroom flats in here,

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and for that sort of property, you're going to be looking at around about

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£125,000. If the property was in slightly better condition,

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maybe more luxurious, you could push that up to maybe £135,000.

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-And if you rented those flats out?

-You're going to be looking at

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a rental in the region of £550-£600 per calendar month.

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What about letting the commercial units on the first floor?

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The commercial units are quite unusual.

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They look to be arranged at the moment as small units,

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and ideally, you're probably going to be looking at about £100 per week

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for these properties. Maybe a little bit less, depending on the market conditions.

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This is a fantastic property, but its development potential could be

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slightly limited. There's not much parking around here -

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that's not good for commercial or residential premises.

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The fact that it's in a conservation area will also have implications for the new owner.

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It is a tough one to take on, in my opinion, but somebody wanted it.

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Let's see who that was as we head to auction.

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Lot 104. 12 commercial units and the eight fire-damaged flats.

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Lots of potential here. It's guided at 180-200.

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What may I say? £180,000 to start me?

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£180,000 I'm bid.

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185. And 190.

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£185,000 I'm bid. Gentleman in the white shirt.

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190. 195 is bid.

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And 200.

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205 is bid. And 210, sir.

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210 is bid. And 215.

0:19:050:19:07

215. And 220.

0:19:070:19:09

220 is bid. 225? No.

0:19:100:19:13

Take £2,000 if you're quick.

0:19:130:19:15

222. And 225.

0:19:150:19:18

225. And 227? No.

0:19:180:19:21

At £225,000 I have. 227 for anyone else?

0:19:210:19:26

£225,000 for the first time, then. At £225,000, out in the white shirt.

0:19:270:19:33

At £225,000 for the second time...

0:19:330:19:36

£225,000 for the third and final time.

0:19:360:19:40

£225,000, are you all done?

0:19:400:19:43

9957, thank you very much indeed.

0:19:430:19:46

The successful bid of £225,000 was made by Chris and his Ukrainian wife Victoria.

0:19:500:19:55

They're in partnership with Anna, who is Russian.

0:19:550:19:59

Chris and Victoria currently run three pubs, but have lots of hands-on renovation experience.

0:19:590:20:04

I met up with them to find out more.

0:20:040:20:07

Chris and Victoria, congratulations. What was the inspiration

0:20:100:20:15

-behind you wanting to have this?

-Well, it's quite a project,

0:20:150:20:18

and the uplift there's been in Ramsgate, that's one of the major reasons we liked the idea.

0:20:180:20:23

We just came and we fell in love with the harbour, which is excellent.

0:20:230:20:29

It is an amazing harbour. I've visited quite frequently,

0:20:290:20:33

and I can't believe the changes. It's fantastic around here.

0:20:330:20:37

The project will be financed by Anna and her husband Alexander, while Victoria and Chris project-manage.

0:20:370:20:42

So, what is your background?

0:20:420:20:45

Well, at the moment, we're running pubs. But I've had a building company before.

0:20:450:20:51

Victoria was doing cakes. And we got together with some business colleagues of ours and took this.

0:20:510:20:57

He actually was doing my shop.

0:20:570:21:00

-Oh, really? Is that how you guys met?

-Yeah.

-Fantastic.

0:21:000:21:04

-Yeah.

-Yes, she bought a shop, and that needed refurbishing, and I got

0:21:040:21:08

the quote and the price right, so... And from that day on, we've been together, really.

0:21:080:21:13

So will this development be the icing on their cake?

0:21:150:21:18

Chris and Victoria would like to turn the shops into office units,

0:21:180:21:23

but they've got bigger plans for the fire-damaged flats.

0:21:230:21:26

-What are you going to do?

-The first project, we've got people coming in

0:21:280:21:33

to just clear it out, and get rid of all of the rubbish and the burnt stains

0:21:330:21:36

and all the problems. Then get the scaffolding up, start working on the front,

0:21:360:21:40

cos we can't change the front, but that can be continuing while

0:21:400:21:44

we're going for planning and all the rest of it. And get the architect involved.

0:21:440:21:47

How many flats are you going to convert it into?

0:21:470:21:49

Well, there's eight at the moment, and we want to keep it to about that number.

0:21:490:21:53

But they just need chopping about slightly. But I think even if the fires hadn't happened,

0:21:530:21:58

we'd have had to have done some alterations and refurb here anyway.

0:21:580:22:01

So the fire has just caused us a few more problems, but it's made

0:22:010:22:05

the price a lot better than it would be if this was an easy refurb.

0:22:050:22:08

So what sort of budget are you looking at to change it and do the work?

0:22:080:22:11

-We're hoping to, with the purchase price and all the fees and everything else, not to spend over £500,000.

-OK.

0:22:110:22:18

-How long is this project going to take you to complete?

-I think

0:22:180:22:21

from the time we start the works, it's going to be about eight months,

0:22:210:22:25

but that's going to be relative to what the authorities come back with.

0:22:250:22:29

-Planners and suchlike can take their own times.

-And how are you going

0:22:290:22:33

to fit all of this in with your other jobs?

0:22:330:22:36

-Lot of support from my other half.

-Victoria, you're going to have a lot going on!

0:22:370:22:42

-I know! But I love it.

-Most of this is going to be

0:22:420:22:45

the project-manage side. I'm not going to get my tools out and start cutting bits of wood about.

0:22:450:22:50

You're going to keep looking smart and turn up on the job.

0:22:500:22:53

-And tell them what to do.

-I like it!

0:22:530:22:55

Guys, I can't wait to see what you do here, and good luck with the planners.

0:22:570:23:01

-Thank you.

-Thank you.

-Thank you.

0:23:010:23:03

They may be used to running three pubs, but how will they get on with

0:23:050:23:08

12 commercial units and eight fire-damaged flats? You know,

0:23:080:23:13

they really have got big plans for this place, but I worry that the lack of parking

0:23:130:23:17

will not impress those planners.

0:23:170:23:19

You can find out if they obtained that all-important planning permission

0:23:190:23:23

later on in the programme.

0:23:230:23:24

Coming up... This mid-terrace in South Wales has three levels,

0:23:270:23:31

but it's all a bit...battered!

0:23:310:23:33

Two cod and chips, please!

0:23:340:23:36

It's back to Ramsgate, to see how the Russian and UK development team

0:23:380:23:43

have been getting on with this vast property.

0:23:430:23:46

But first, we return to Stoke-on-Trent, where some surprises

0:23:490:23:52

have sprung up.

0:23:520:23:53

The main problem was the damp, getting rid of the damp.

0:23:530:23:56

The city of Stoke-on-Trent

0:24:000:24:02

is made up of six different Staffordshire towns and several villages.

0:24:020:24:06

Smallthorne, a former mining community about three miles from Stoke,

0:24:060:24:10

is where we saw this three-bed end-of-terrace. It was bought for £51,500 by Ian,

0:24:100:24:16

who roped in his son Neil to help with the renovations.

0:24:160:24:19

Neil works in air conditioning installation and plumbing, so his skills were going to be handy.

0:24:190:24:26

Dad Ian, an accident investigation officer for an insurance company,

0:24:260:24:30

already had two buy-to-let properties, but Neil was a newbie.

0:24:300:24:35

-Do you work together a lot?

-No, first one.

-And is this a joint venture?

0:24:350:24:39

-No.

-Not yet.

-What?

-What he needs to look at is...

-I love the way

0:24:390:24:46

he's talking to you as if you're not here! He still thinks you're four years old.

0:24:460:24:50

Sometimes I feel like I'm four years old!

0:24:500:24:52

Well, the refurbishment certainly wasn't going to be child's play.

0:24:540:24:57

# So please don't treat me

0:24:570:25:00

# Like a child... #

0:25:010:25:04

They planned to move the bathroom upstairs into part of the middle bedroom,

0:25:060:25:10

and had a budget of £10-20,000 and a two- to three-month timescale.

0:25:100:25:15

Well, seven months have now passed, and back in Smallthorne,

0:25:150:25:19

it's Ian we met at the property.

0:25:190:25:21

There have been some impressive changes.

0:25:240:25:26

But the kitchen is not quite complete.

0:25:270:25:29

Let's head upstairs and see if son Neil

0:25:300:25:33

won the day about moving the bathroom.

0:25:330:25:36

The answer?

0:25:370:25:38

Just look at the result.

0:25:400:25:41

Splitting the former middle bedroom has worked a treat.

0:25:450:25:48

There are still three bedrooms.

0:25:510:25:55

This one's at the rear.

0:25:550:25:56

And the double-aspect master at the front.

0:25:590:26:02

This is a vast improvement, and so is the downstairs layout change,

0:26:020:26:07

which is still in progress.

0:26:070:26:09

This was the old kitchen, as it was - sink there.

0:26:100:26:15

Absolute dreadful mess.

0:26:150:26:18

The bathroom was up that end.

0:26:180:26:20

So we thought we'd start with the bathroom first,

0:26:200:26:23

but when we started doing that, the whole place was running with water.

0:26:230:26:27

We decided we'd make that into a dining kitchen,

0:26:270:26:31

so this wall here that was in before,

0:26:310:26:35

we knocked it out -

0:26:350:26:37

well, we had a builder in to do it -

0:26:370:26:39

and made it into what it is now, the kitchen-dining room.

0:26:390:26:43

The corridor linking the kitchen to the living room now has

0:26:440:26:48

laminate flooring and a subtle colour scheme.

0:26:480:26:52

Losing the fireplace in the dual-aspect reception was wise.

0:26:520:26:56

It's been the same treatment for the middle reception room,

0:27:000:27:03

where the staircase is.

0:27:030:27:04

The property's looking good, but what issues did it present?

0:27:040:27:07

Well, the main problem was the damp. Getting rid of the damp,

0:27:090:27:12

because it was running, literally running, through the walls in places,

0:27:120:27:16

and we didn't realise quite how bad it was.

0:27:160:27:19

And then once we started getting through all the rubbish,

0:27:190:27:22

we found it was a lot worse than we thought,

0:27:220:27:25

especially what was the bathroom at the back.

0:27:250:27:27

# Baby, what's so bad about it?

0:27:290:27:32

# Baby, what's so bad about it? #

0:27:340:27:38

The house was in a sorry state,

0:27:380:27:40

and fixing the damp was a major unexpected job.

0:27:400:27:44

The whole house has been plastered, everything.

0:27:440:27:47

We had to chop off to a metre.

0:27:470:27:49

Damp-proof course, tanked all the way round.

0:27:490:27:54

And then it all had to be waterproof-rendered,

0:27:540:27:58

and then we skimmed the whole lot.

0:27:580:28:01

It didn't end there. The extension has been re-roofed, the flashing

0:28:010:28:06

round the chimney's been replaced, and the whole house has been rewired

0:28:060:28:10

and replumbed. Ian and Neil both work full-time and have been doing

0:28:100:28:15

the refurbishment in their spare time. How's the work been divided up?

0:28:150:28:19

He's done most of it. I've been helping him. He's done the bathroom.

0:28:190:28:25

He's done all the plumbing. He's fitted the kitchen, done a lot of the labouring work.

0:28:250:28:30

We got a plasterer in, electrician. But apart from that,

0:28:300:28:33

he's done it all.

0:28:330:28:35

Ian's wife has been responsible for the stylish bathroom,

0:28:350:28:38

and the kitchen units - a good choice. With the unexpected damp problems

0:28:380:28:43

to tackle, plus the plasterer and electrician to employ,

0:28:430:28:47

how did the budget stack up? Did Ian keep to his £10-15,000?

0:28:470:28:51

I think I budgeted 15,

0:28:510:28:54

and my lad, who was with me, he said 20.

0:28:540:28:58

It's probably... The whole lot has now cost us about £30,000.

0:28:580:29:03

With the £51,500 Ian spent at auction,

0:29:040:29:07

that takes his total investment here to £81,500.

0:29:070:29:11

I wonder if Ian's decided to sell the house or let it?

0:29:110:29:15

Not sure. See what it's worth. If it's worth enough, we'll sell it,

0:29:180:29:23

or try and sell it. If not, we'll rent it.

0:29:230:29:26

Let's see if two local estate agents

0:29:260:29:28

we invited along can help Ian decide which option is best at the moment.

0:29:280:29:33

There's quite a change since the first time this agent saw it.

0:29:330:29:37

Moving the bathroom upstairs is definitely a good idea for this property.

0:29:370:29:42

With three bedrooms, the size of the property here,

0:29:420:29:45

people would expect a first-floor bathroom.

0:29:450:29:48

The kitchen's lovely.

0:29:480:29:49

They've spent a significant part of the budget there,

0:29:490:29:51

but it's a light, airy and spacious room.

0:29:510:29:53

Ian has £81,500 invested in the house, so how much could the place

0:29:540:29:59

-be worth on the resale market?

-If I was to put this property on sale,

0:29:590:30:03

I would expect it to achieve in the region of £75,000 to £80,000.

0:30:030:30:06

I would place this property on the open market

0:30:060:30:10

in the region of £80-85,000.

0:30:100:30:12

With that valuation range, Ian's facing a loss of £6,500

0:30:120:30:16

or a profit of £3,500 before tax and expenses.

0:30:160:30:21

It's about what I thought.

0:30:220:30:24

We're within the parameters, so not a problem. I'm happy with that.

0:30:240:30:29

If Ian decides to let it, what income could the house achieve?

0:30:300:30:35

I would anticipate the rental income in the region of £450 to £500 per calendar month.

0:30:350:30:40

Rental figure per calendar month, you'd be looking at £450.

0:30:400:30:44

That potential rental spectrum from £450 to £500 per calendar month

0:30:440:30:49

would produce a yield of 6.5 to over 7%. What does Ian think of that?

0:30:490:30:54

We've already got somebody who wants it for £500, so we'll probably end up renting it.

0:30:550:31:00

Ian's intention is to grow his buy-to-let portfolio, and this house

0:31:020:31:06

takes his total to three. This one had some nasty surprises in store,

0:31:060:31:11

so I hope he'll view the next property before he buys it.

0:31:110:31:16

The question is, has this been a worthwhile project?

0:31:160:31:19

Yeah. I thought...

0:31:190:31:20

Well, I didn't expect to spend as much on it as we had.

0:31:200:31:24

Um...so it's just taken us a little bit by surprise, but, yeah,

0:31:240:31:28

it's been all right. Hard work, but OK.

0:31:280:31:30

This is Mountain Ash, deep in the Welsh valleys, and a place

0:31:350:31:39

with an interesting New Year's Eve tradition. Each December 31st,

0:31:390:31:43

thousands of locals line the streets to watch a running race

0:31:430:31:47

that goes twice round the town.

0:31:470:31:50

# Now the race is on... #

0:31:500:31:52

The race commemorates athlete Griffith Morgan, whose statue stands

0:31:540:31:57

on the High Street. I'm not sure I'd fancy a cold winter's jog

0:31:570:32:02

on New Year's Eve, but I am hot-footing it over to our property

0:32:020:32:06

to see what the auction had to offer.

0:32:060:32:08

So a mile from Mountain Ash is the village of Penrhiwceiber,

0:32:080:32:12

with stunning views over the valleys. They never fail to take my breath away.

0:32:120:32:17

And the property? Well, the guide price might make you gasp as well -

0:32:170:32:21

£30,000 for a three-bedroom terrace. Sounds good.

0:32:210:32:27

Hello, hello, what have we got here, then? Two cod and chips, please!

0:32:270:32:32

I don't really think this works. It does allow a lot of light into the hallway.

0:32:320:32:36

Just feels like a taxi cab waiting room.

0:32:360:32:38

I think this has got to be boarded up, because you've got such a lovely big space here.

0:32:380:32:44

Double-aspect windows. This has already been knocked through into one room,

0:32:440:32:48

and it works.

0:32:480:32:49

You've got this big old view to look at. I mean, how stunning,

0:32:490:32:53

even on a misty day like today? Looks fabulous out there.

0:32:530:32:57

One thing I would have to investigate further is this...

0:32:570:33:00

Now, what is this about? Can you see? You can kind of, like,

0:33:000:33:04

bounce off the walls in this house, literally!

0:33:040:33:08

It's all been plasterboarded, so I think I'd investigate further,

0:33:080:33:12

because they might be hiding a deep, murky secret.

0:33:120:33:15

But as this space goes, it's wonderfully large, it's light and bright. It works.

0:33:150:33:20

For starters, though, that hall hatch has got to go. And there's

0:33:230:33:28

some dodgy do-it-yourself that you'll have to redo yourself.

0:33:280:33:31

And I'd investigate those wobbly walls before I'd try to hang anything on them.

0:33:310:33:35

# ..tumble and fall... #

0:33:380:33:40

This house is on three floors. I'm going up first. There are three bedrooms,

0:33:400:33:44

but note - no bathroom. Two of the bedrooms have been

0:33:440:33:48

created from what would have been a large front room. The third room

0:33:480:33:52

is small, so there's not much room to manoeuvre,

0:33:520:33:55

or bathroom, for that matter.

0:33:550:33:57

There's some work needed here, but nothing structural,

0:34:000:34:04

by the looks of things. Let's see if the lower ground is the same.

0:34:040:34:07

Well, it's a different story altogether downstairs.

0:34:090:34:12

The first thing that hits you is the big smell of damp.

0:34:120:34:15

Now, reception room through here.

0:34:150:34:17

They've gone Artex-crazy - it looks like there's some Easter eggs

0:34:170:34:21

on the ceiling. And through here is the kitchen - really disappointing.

0:34:210:34:26

It's a bit small, it's dark, there's not much light coming through

0:34:260:34:30

that window. The only bathroom is through there, with no loo.

0:34:300:34:34

It just feels wrong. Now, where is the toilet, if it's not in there?

0:34:340:34:39

Let's have a look through here... Of course! Here it is. Outside loo.

0:34:390:34:44

It's really chilly out here. This is like a cobbled-together lean-to.

0:34:440:34:47

Can you imagine, in the middle of the night,

0:34:470:34:49

not only have you got to come down one flight of stairs, you've got to come down two flights of stairs,

0:34:490:34:54

you've got to battle with this outside door, go to the loo...

0:34:540:34:59

Uh-uh - it's just not working for me.

0:34:590:35:01

I really think, to make this place flow, you need to think about

0:35:010:35:05

moving this kitchen into this room. You'd have a nice open-plan,

0:35:050:35:09

sort of kitchen-diner feel. You could have a fantastic utility room through there.

0:35:090:35:14

Make the bathroom a bit bigger, move the loo, put it in there.

0:35:140:35:17

Now, I'm not saying you're not going to have drainage problems.

0:35:170:35:20

You've got to think about the plumbing, but I'm just thinking about how you want

0:35:200:35:24

to live, and I think that's the way to do it.

0:35:240:35:27

You've got to make this kitchen somewhere you actually want to cook,

0:35:270:35:30

rather than a dingy, dark cave with the bathroom right next door.

0:35:300:35:34

As for that toilet, well, the lean-to has got to go.

0:35:340:35:38

Who exactly is this convenience convenient for? It's practically an outside toilet.

0:35:380:35:44

And the thought of that makes me shiver!

0:35:440:35:47

# Shiver

0:35:470:35:51

# Shiver... #

0:35:530:35:55

And while we're outside, the distant views may be great,

0:35:550:35:59

but this auction lot that was guided at £30,000-plus isn't as pleasing on the eye.

0:35:590:36:04

Back inside, and what's fast becoming my obsession in this property - loos!

0:36:040:36:10

I'd try to squeeze one up on the landing on the top floor.

0:36:100:36:14

It might just be do-able. All those changes cost money, and the local housing market

0:36:140:36:18

has a ceiling price. So, what would a local estate agent advise here?

0:36:180:36:23

The house here is a slightly awkward configuration,

0:36:260:36:29

with the bedrooms to the second floor and the bathroom and kitchen both to the basement levels.

0:36:290:36:34

So the new owner is probably wise to consider perhaps looking to put a loo

0:36:340:36:38

somewhere upstairs in this property, and perhaps increasing the size

0:36:380:36:41

of the kitchen, which, at the moment, is fairly small.

0:36:410:36:44

What effect would losing a bedroom have on the resale value?

0:36:440:36:48

The potential value here would be in the region of £50,000. If the property

0:36:480:36:53

was converted into a two-bed property, the potential sales value

0:36:530:36:57

would be in the region of £40,000.

0:36:570:36:59

But if the loo was moved upstairs, keeping three bedrooms,

0:37:000:37:04

-what effect would that have on the rent?

-Fully renovated, this property is worth

0:37:040:37:09

between £350 and £375 per calendar month.

0:37:090:37:12

What if the bathroom was moved upstairs into one of the bedrooms?

0:37:140:37:17

If it was converted to a two-bed with an upstairs bathroom, the rent would

0:37:190:37:23

be reduced to in the region of £325 per calendar month.

0:37:230:37:26

A great rental, pure and simple. Work to do, though, but perfect

0:37:270:37:33

for those who appreciate a view and have strong legs for the stairs.

0:37:330:37:36

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

0:37:360:37:39

Moving on to lot number 18 -

0:37:390:37:40

freehold, three-bed, mid-terrace house, close to local amenities,

0:37:400:37:44

with uPVC double glazing and gas central heating. £28,000 to get things started? 28?

0:37:440:37:49

25 then, ladies and gentlemen. 25 to get me started. There we are!

0:37:500:37:53

£25,000 and the hands go up. £25,000 I've got. £25,000 is bid.

0:37:530:37:57

6? £26,000. 27. 8.

0:37:570:38:00

£28,000 I've got.

0:38:000:38:02

£28,000 I have. And 9.

0:38:020:38:05

Thank you. £29,000 is bid.

0:38:050:38:06

30? £30,000. Thank you. £30,000 is bid.

0:38:060:38:10

£30,500, thank you. £30,500. 1?

0:38:100:38:13

1 I've got. £31,000 I have.

0:38:130:38:16

Looking for £31,500, ladies and gentlemen.

0:38:160:38:19

OK. £31,000. If there isn't any advance on £31,000...

0:38:190:38:24

OK, ladies and gentlemen, I can't do anything on that level.

0:38:240:38:27

I'm looking for £31,500 to do anything.

0:38:270:38:30

£31,500. There we are, sir.

0:38:300:38:31

Where was you when I was asking in the first place?

0:38:310:38:35

There we are, then. £31,500.

0:38:350:38:38

Sir, what's your bidder's number?

0:38:380:38:40

That successful bidder, slightly hidden from view, was Dennis,

0:38:400:38:44

who was at the auction with his business partner, Mark. Dennis comes from Cardiff,

0:38:440:38:48

and they run a central heating, kitchen and bathroom company.

0:38:480:38:51

Very handy!

0:38:510:38:53

I met Dennis back at the house to find out why he wanted it.

0:38:540:38:59

-Dennis, congratulations. The property is yours, sir.

-I know.

-Are you shocked?

0:38:590:39:04

Very shocked. It was a bit of a surprise...but happy.

0:39:040:39:09

-So why was it a surprise? Because you were actually bidding for this.

-We weren't going

0:39:090:39:13

to go for this one at first. We were going to go for another lot.

0:39:130:39:16

But that one went for a bit more than what we can bid up to, so my business partner

0:39:160:39:20

asked, "Why don't we go for this one?" We hadn't even seen

0:39:200:39:23

the property yet. It was only just down the road from the other one, so he said, "Let's go for it!"

0:39:230:39:27

So you took a bit of a gamble on auction day, didn't you?

0:39:270:39:30

-A very big gamble.

-Were you relieved to see it's actually in an OK state?

-Yes.

0:39:300:39:33

We'll have a look round and see what needs doing and what can be done to improve it a little bit.

0:39:330:39:38

And why have you bought this?

0:39:380:39:40

Well, just as an investment, really, for me and my business partner.

0:39:400:39:44

-So, are you looking to sell this on or rent it out?

-Um, probably rent it

0:39:440:39:47

for the first couple of years and maybe sell it on. Or even just keep

0:39:470:39:50

on paying off the mortgage, and then happy days later on. There'll be

0:39:500:39:54

a little more scope to invest in another one.

0:39:540:39:58

# Oh, happy, happy days

0:39:580:40:01

# I wish for you... #

0:40:030:40:06

Happy days indeed! Dennis and his business partner, Mark,

0:40:060:40:09

plan to spend just £5,000 on this three-storey terrace,

0:40:090:40:14

making a total outlay of £36,500.

0:40:140:40:17

They hope to get about £5,000 rental income a year -

0:40:170:40:21

a yield of over 12%. What are the plans?

0:40:210:40:25

Well, we're going to change the kitchen, because that's a little bit

0:40:260:40:30

run-down. Redo the bathroom and the toilet. We're thinking of

0:40:300:40:34

-also putting a new toilet upstairs.

-You say "change the kitchen" -

0:40:340:40:38

do you mean move the kitchen, or just update the kitchen?

0:40:380:40:40

Update the kitchen. Update it. Cos the one at the moment is run-down.

0:40:400:40:44

See, I think that will be a great space for a utility area.

0:40:440:40:48

A much bigger bathroom with a downstairs toilet, a utility area, and then

0:40:480:40:52

you've got yourself a nice, bright kitchen, dining, sitting area.

0:40:520:40:57

Sounds good. I'll just put a few figures together and we'll see what

0:40:570:41:00

the expense is. But I'll consider it.

0:41:000:41:04

Now, what about the lean-to downstairs? Because you've got

0:41:040:41:07

-an outside toilet.

-Yes. Again, it's down to the drainage areas. I think

0:41:070:41:11

if we just do it up, replace the toilet. If we can move it, we will,

0:41:110:41:15

-but if we can't, we'll just leave it there where it is.

-Aargh!

0:41:150:41:18

You might be leaving the toilet outside?! I actually had a bit

0:41:180:41:21

of a shiver! I opened the door and it was like, "I can't imagine going to the toilet out here!"

0:41:210:41:26

Like I said, we'll just do the figures and see

0:41:260:41:28

what the costs are. But if we're going to rent it first, we'll just do that brush-up.

0:41:280:41:32

Oh, Dennis, I think it'll take a bit more than a brush

0:41:320:41:36

to get this place sparkling.

0:41:360:41:38

But I think I've made my point. Dennis and his partner have set

0:41:410:41:45

an eight-week deadline, which they do want to meet. That's partly why

0:41:450:41:49

a more basic job is on the cards. Still, it's an exciting time for Dennis.

0:41:490:41:54

-Is this your first time being a landlord?

-It's the first time

0:41:540:41:57

being a landlord, but I'm up for a challenge. I'll do anything.

0:41:570:42:00

-And it's the first house you've renovated?

-First house I've renovated.

0:42:000:42:04

-Are you quite nervous?

-Very nervous, but I just can't wait.

0:42:040:42:07

-Just can't wait.

-Dennis, good luck with this property. I really hope

0:42:070:42:10

-it goes well. Stay confident.

-OK, thanks. Thank you.

0:42:100:42:14

Well, Dennis and I disagree on what to do here. It's one thing

0:42:160:42:21

making the place tidy, but the layout at the moment - well, it's just not working for me at all.

0:42:210:42:26

I know he needs to keep his costs down,

0:42:260:42:28

but that outside loo?! Uh-uh! Has to go.

0:42:280:42:30

You can see if it does later on in the programme.

0:42:300:42:33

All our buyers hope their journey has been worth it. They took

0:42:360:42:39

-the right turns and avoided those pitfalls.

-Yes. Decisions, decisions.

0:42:390:42:44

Did they make the right ones? Time to go back and find out.

0:42:440:42:47

Back now to Ramsgate in Kent, and this rabbit warren of a property

0:42:490:42:53

in a conservation area. It consisted of 12 commercial units and eight fire-damaged flats,

0:42:530:42:59

which husband and wife team Chris and Victoria

0:42:590:43:02

bought at auction for £225,000. There was plenty to do here,

0:43:020:43:07

but the couple were approaching it with their eyes wide open.

0:43:070:43:11

I think even if the fires hadn't happened, we'd had to have done

0:43:110:43:15

some alterations and refurb here anyway. So the fire has just caused us

0:43:150:43:19

a few more problems, but it's made the price a lot better than it would be if this was an easy refurb.

0:43:190:43:24

The total budget of the purchase fees and the work of £500,000

0:43:260:43:31

was being provided by Russian business partners Anna, on the left, and her husband,

0:43:310:43:35

Alexander, who wasn't there when I visited the first time.

0:43:350:43:38

That meant around £27,000 for the renovations, and an eight-month timescale was the aim.

0:43:400:43:45

We're back two-and-a-half years later, but Chris and Victoria

0:43:480:43:52

are not. They've moved on to another project,

0:43:520:43:55

and Anna and her husband Alexander have taken over.

0:43:550:43:58

The uninhabitable eight flats have been completely refurbished.

0:44:040:44:08

Clearly, it's been a big job.

0:44:150:44:17

Well, if I had a hat, I'd take it off to Alexander and Anna.

0:44:250:44:29

The flats are looking spick and span.

0:44:300:44:33

They may have lost some of their period features, but it's hard to

0:44:330:44:36

believe this enormous undertaking is the couple's first foray

0:44:360:44:41

into property development.

0:44:410:44:42

As Alexander doesn't speak English, it's Anna who explains

0:44:440:44:47

the challenges they faced.

0:44:470:44:50

This was quite an ambitious and big project, but by the end...

0:44:500:44:55

It did take quite a long time. It was more than two years,

0:44:550:45:01

and by the end, we coped well, I think.

0:45:010:45:05

So now it's almost done.

0:45:060:45:09

Where once there were eight flats, now there are nine, thanks to

0:45:110:45:14

a one-bed-flat-sized bit of space they found on the first floor.

0:45:140:45:19

Well, I did say it was a bit of a rabbit warren!

0:45:190:45:21

Alexander and Anna haven't tackled the commercial units yet, but they

0:45:240:45:27

do have a cunning plan.

0:45:270:45:30

We would like to apply to have these offices

0:45:300:45:34

converted to flats, and now, at the moment, we are waiting for a decision.

0:45:340:45:39

If they do get permission to create two more flats, that would give them

0:45:420:45:45

11 flats in total. Some they'd sell, some they'd rent out.

0:45:450:45:52

Of the nine flats they've almost completed,

0:45:520:45:54

three of them are two-bedroom flats

0:45:540:45:56

and six of them are one-beds.

0:45:560:45:58

Some of those are more like studio flats,

0:46:020:46:04

but Anna has a particular favourite.

0:46:040:46:06

I think the top flat.

0:46:080:46:10

It definitely looks very different

0:46:100:46:15

and very lovely.

0:46:150:46:17

It's my favourite, because you can see the sea front and harbour

0:46:170:46:21

from this flat. I think people will be quite happy to live there.

0:46:210:46:26

So it's taken them longer than they'd hoped -

0:46:300:46:32

almost two years longer.

0:46:320:46:33

The original budget was around £275,000.

0:46:330:46:37

How much have they ended up spending?

0:46:370:46:40

That was about £250,000.

0:46:420:46:45

That brings the total outlay on the project,

0:46:450:46:48

including the £225,000 purchase price, to £475,000.

0:46:480:46:54

There's still a bit to do, and those commercial units to think about.

0:46:540:46:59

But we asked two local property experts to cast an eye over the work

0:47:010:47:05

they've done so far.

0:47:050:47:06

Coming back today, I'm absolutely amazed

0:47:060:47:09

at the transformation of this property.

0:47:090:47:11

It really has gone from a burnt-out wreck

0:47:110:47:14

into some really very nice flats, and I think it's very good for the area.

0:47:140:47:19

The layout of the properties is very unusual.

0:47:190:47:21

My experience tells me that won't be particularly popular

0:47:210:47:25

with some buyers. But if they're priced to reflect that, then I'm sure they'll sell.

0:47:250:47:29

So if Alexander and Anna do go down that resale route,

0:47:290:47:33

what do the experts think the flats could fetch?

0:47:330:47:36

There are some studios and one-bedrooms. I would value those

0:47:370:47:41

between £55,000 and £65,000. The two-bedroom apartments I would say

0:47:410:47:45

are going to be somewhere between £80-85,000.

0:47:450:47:48

The one-bedroom flats

0:47:480:47:50

would be worth around about £65,000.

0:47:500:47:53

And the two-bedrooms, we'd be looking at around about £85,000.

0:47:530:47:57

Those valuations could mean a pre-tax profit of between £95,000

0:48:000:48:06

and £170,000, minus the usual expenses,

0:48:060:48:08

if they sell all the nine flats created so far.

0:48:080:48:11

That's a pretty healthy return, if you ask me.

0:48:110:48:15

But what about the potential rental income from the flats?

0:48:150:48:20

A one-bedroom flat in this area

0:48:200:48:22

I would imagine would be in the region of about £400 per calendar month.

0:48:220:48:26

If we're looking at the two-bedrooms, which are always in high demand,

0:48:260:48:30

then you're going to be looking probably at around about

0:48:300:48:33

£500 per calendar month.

0:48:330:48:35

I think the studios and one-bedrooms

0:48:350:48:38

will be circa £400 per calendar month.

0:48:380:48:40

The two-bedrooms could get somewhere around £500 per calendar month.

0:48:400:48:44

Letting the six one-bedroom flats at £400 per month,

0:48:480:48:52

and three two-beds at £500 a month

0:48:520:48:55

would give Alexander and Anna a yield of just under 10%.

0:48:550:48:59

On top of that, there's the potential for more income,

0:48:590:49:03

depending on what they end up doing with the commercial units.

0:49:030:49:07

So it's win, win, win for these two first-time developers,

0:49:070:49:10

whichever way you look at it.

0:49:100:49:12

This was the first project for us, so, hopefully, not the last.

0:49:140:49:19

Earlier in the programme, we were in South Wales,

0:49:230:49:26

one mile from Mountain Ash in the village of Penrhiwceiber.

0:49:260:49:29

That's where Dennis, a gas fitter

0:49:290:49:31

from Cardiff, bought this three-bed mid-terrace for £31,500.

0:49:310:49:36

He bought the house as a joint first investment purchase

0:49:380:49:42

with his friend and colleague, Mark.

0:49:420:49:45

I thought this house, spread over three levels, needed configuring,

0:49:450:49:49

not least because the only loo was on the lower ground floor

0:49:490:49:52

in a lean-to. Ugh!

0:49:520:49:53

The dungeon kitchen definitely needed a rethink, and I hoped Dennis would see it my way.

0:49:530:49:59

-You say "change the kitchen" - do you mean move the kitchen, or just update the kitchen?

-Update it.

0:49:590:50:05

See, I think that would be a great space for a utility area. You know,

0:50:050:50:09

a much bigger bathroom with a downstairs toilet, a utility area,

0:50:090:50:13

and then you've got yourself a nice, bright kitchen, dining, sort of sitting area.

0:50:130:50:17

Sounds good. I'll just put a few figures together and then we'll see what the expense is.

0:50:170:50:23

Would the numbers stack up to make the most of this house?

0:50:230:50:27

Three and a half months later, we've come back to find out.

0:50:290:50:32

This looks promising...

0:50:320:50:34

Just look at the new appliances and units!

0:50:370:50:39

That serving hatch in the hall has been filled in,

0:50:420:50:44

and there's a new door to the living room.

0:50:440:50:47

Down on the lower ground level, I'm glad to see Dennis took my advice.

0:50:530:50:56

Look at this kitchen.

0:50:560:50:59

The wall between the former kitchen and original bathroom

0:51:030:51:05

has been removed, creating a much bigger space for the new bathroom.

0:51:050:51:10

As you can see, we've taken Lucy's advice, and I've converted

0:51:100:51:13

the old dining room into a kitchen-cum-diner,

0:51:130:51:16

and we had to make good a wall where we took the old fireplace out,

0:51:160:51:20

so we can fit the kitchen in and the services.

0:51:200:51:22

So what we did with the old kitchen is make that into a luxury bathroom.

0:51:220:51:27

As you can see, this is the bathroom. Took a couple of weeks to do.

0:51:290:51:33

We had to redo all the walls, retile everything, top to bottom. We fitted

0:51:330:51:37

a new toilet, bath, and the shower and wash-hand basin.

0:51:370:51:41

With all this extra effort we've put into this house, we hope that it'll help to sell it.

0:51:410:51:46

I think I might have gone for a bigger wash-hand basin

0:51:490:51:51

in what is now a large bathroom.

0:51:510:51:53

I don't think you really need an over-bath shower

0:51:530:51:56

as well as a shower cubicle, but the new loo is 100% better

0:51:560:52:00

than being in the lean-to. Talking of which...

0:52:000:52:03

The outside toilet is no longer going to be there. It's going to be a little utility room,

0:52:040:52:08

for the washing machine and dishwasher, but we have put a new toilet in the new bathroom,

0:52:080:52:13

and we have put one upstairs, so if anybody does want to get up in the middle of the night

0:52:130:52:17

to go to the toilet, they haven't got to go down two flights of stairs.

0:52:170:52:20

It saves a long journey, and somebody falling downstairs in the middle of the night, half-asleep!

0:52:200:52:25

The loo and wash basin have still to be installed. Mind you,

0:52:250:52:28

Dennis and Mark did face a challenge getting all the pipework up there.

0:52:280:52:32

But the fact they managed to keep the three original bedrooms

0:52:330:52:37

the same size should have a positive impact on the sale value of this house.

0:52:370:52:42

Back on the ground floor, remember that bouncing wall?

0:52:420:52:45

You can kind of, like, bounce off the walls in this house, literally!

0:52:450:52:48

That was caused by plasterboard that had not been fixed properly.

0:52:480:52:52

Now it's all been replaced, so no-one will be bouncing off the walls in here now.

0:52:520:52:57

Apart from the tiling and plastering, Dennis and Mark

0:52:570:53:00

have done all the other work here.

0:53:000:53:02

But finding time to work on the house

0:53:020:53:04

had taken a bit longer than they anticipated.

0:53:040:53:07

It is the first little venture we've done together, and, um...it's been

0:53:070:53:11

a bit of an experience. Tackled it a little bit slower than

0:53:110:53:15

what we should have, but I think it's going to turn out fine at the end.

0:53:150:53:19

They've actually spent just three weeks on the project, fitting it in

0:53:190:53:23

around their full-time businesses. The front of the house has been

0:53:230:53:26

repainted, and they plan to put a couple of fence panels and some turf

0:53:260:53:30

at the back. So how's the budget holding out?

0:53:300:53:33

My budget at the moment is about £5,000, but we did say

0:53:340:53:37

at the beginning that it's going to be about £5-6,000,

0:53:370:53:40

so I've still got at least another £1,000 to spend, so I think I should be well within budget.

0:53:400:53:46

Keeping the budget to £6,000

0:53:480:53:50

on top of the £31,500 that Dennis and Mark paid at auction

0:53:500:53:54

would take their total investment here to £37,500.

0:53:540:53:58

We invited two local estate agents to have a look around

0:54:000:54:04

and give us their opinion of the property and its potential resale figure,

0:54:040:54:08

as Dennis and Mark are intending to sell.

0:54:080:54:10

The overall progress of the property is coming along very, very nicely.

0:54:120:54:16

There are some nice benefits,

0:54:160:54:17

certainly to the first floor,

0:54:170:54:19

with a toilet and wash-hand basin. Ideal for families.

0:54:190:54:22

The decision by the owner

0:54:220:54:24

to remove the kitchen from its original position

0:54:240:54:27

and to place it towards the rear of the property has been an inspired choice.

0:54:270:54:31

The main attraction to this property is certainly

0:54:310:54:33

that it's over three tiers.

0:54:330:54:34

You've got your lower ground floor, which is your nice kitchen and bathroom area,

0:54:340:54:38

and certainly good living space to the ground floor and first floors.

0:54:380:54:42

If Dennis and Mark decided to let rather than sell the property,

0:54:420:54:46

what rental income could they earn?

0:54:460:54:48

There's a large demand for rental properties in this location,

0:54:480:54:51

and you'd look to achieve £325 per calendar month.

0:54:510:54:55

Once the property's finished, I would advise a rental market value

0:54:550:54:59

of £400 per calendar month. Slightly higher than the average for the street here,

0:54:590:55:03

but the owner has endeavoured to create something a little bit different here,

0:55:030:55:07

and it will fetch a slightly higher value.

0:55:070:55:09

Those incomes could produce a yield of between 10 and 12%

0:55:100:55:14

if the higher figure was achieved.

0:55:140:55:17

I'd like the £400 a month, but we were expecting almost £380, to

0:55:170:55:20

be honest with you.

0:55:200:55:22

I don't like the sound of the other one, £325. No, that's a no-goer.

0:55:220:55:26

Not for the amount of work that we've done in this property.

0:55:260:55:30

How much would the house be marketed for -

0:55:300:55:33

more than the £37,500 that Mark and Dennis have invested?

0:55:330:55:37

On completion of the works, we'd suggest a market figure of £45,000,

0:55:390:55:43

with a realistic figure of £42,000 being achieved.

0:55:430:55:47

There is a ceiling price in this area.

0:55:470:55:49

In my opinion, this house will probably break that ceiling price slightly.

0:55:490:55:53

Once the property is finished, I would advise

0:55:530:55:55

a market value of between £50-55,000.

0:55:550:55:59

That wide valuation range could generate a gross profit for them

0:55:590:56:04

of between £4,500 and £17,500 before taxes and expenses.

0:56:040:56:09

The top valuation I think is the better one to have,

0:56:120:56:15

but realistically, I think it might go for around £50,000 to £48,000.

0:56:150:56:21

Finding the time to work on this first joint development project

0:56:210:56:24

has proved a challenge for Dennis and Mark,

0:56:240:56:26

and there's still more to do.

0:56:260:56:28

So, in the end, what does Dennis think of my advice?

0:56:280:56:31

Considering it's the first time we've done this,

0:56:330:56:35

it's nice to take somebody else's advice on board who's used to doing it.

0:56:350:56:39

100% brilliant.

0:56:390:56:40

Well, it's the end of the road for the buyers on today's programme,

0:56:440:56:48

but there are plenty more where they came from.

0:56:480:56:50

So for a chance to follow what happens to them, join us next time for more Homes Under The Hammer.

0:56:500:56:55

-See you then.

-Goodbye.

-Bye.

0:56:550:56:57

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