Episode 36 Homes Under the Hammer


Episode 36

Martin Roberts and Lucy Alexander visit a double-fronted end-terrace house in Stoke, a flat in Sydenham and a semi-detached house in County Durham.


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Transcript


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Hello. If you're like Martin and me and you absolutely love property,

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sometimes it can be quite difficult to switch off,

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even in these difficult market conditions.

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Yes. When you're looking for your dream home, you could see it walking around town,

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when you're on holiday, or maybe in an estate agent's window.

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There's always temptation out there.

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And one place to really get your pulse racing is in an auction room.

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Well, when it comes to property, everyone has different requirements,

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whether that's looking for a new home or somewhere to do up and rent out.

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For some, it's about location, for others, it's about the character,

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and for the rest, well, it's about the money it can generate.

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So, here's what we've got for you on today's show.

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'The layout of this one-bed flat in Sydenham needs a rethink.'

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The first thing I would do would be to get all of these out

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and put them all along here.

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'There's a psycho shower horror in County Durham.'

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One part of the property that is completely disastrous is the bathroom.

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'And when you hear the guide price of this two-flat conversion in Stoke,

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'you might think it's a steal.'

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Just be aware that security might be a bit of an issue.

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-'All of these properties went to auction.'

-500.

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

-Sold.

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'In the 19th century, the sleepy village of Sydenham

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'was a day trip on the train for Londoners wanting to escape the city's smog and soot.

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'And it became very fashionable when Crystal Palace was re-sited here.

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'It still has lovely green spaces

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'and the shops and cafes give it a trendy, villagey vibe.'

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This street is conveniently located just off Sydenham high street,

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which means you've got plenty of amenities close by,

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including the local pub, if you fancy a quick drink.

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Now, this is an area where one-bedroom flats sell on average

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for around the £160,000 mark.

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So when I tell you I'm here to see a flat of that size

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which had a guide price of only £80,000,

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well, I'm sure you're going to be as interested as I am. I'm going in.

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'It's a period dwelling and the entrance is not straight onto the street level, which is good.

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'Not so good is the shabby paintwork and the unwelcoming communal hall

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'that leads to the upstairs flat

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'and the one I am here to see.'

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Hm. Bit of a cramped entrance area.

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Not terribly inviting.

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The bedroom is through here. Quite a good space.

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A really lovely, big bay window.

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And through here into the kitchen/living area, perhaps?

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Straight away, the only redeemable feature in this room

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is that big window, and there's a blooming great load of units right across it!

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If this were my flat, the first thing I would do

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would be to get all of these out and put them all along here

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so you could enjoy that aspect.

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It's a lovely, bright, sunny space.

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Don't forget, you've got to eat in here,

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you've got to live in here, you could put a nice table and chairs under there,

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there's got to be enough room for a sofa, so I'd think carefully

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and zone this room out.

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But there's another door there, so I'm wondering what's through here.

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What is it? A-ha!

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Yes, of course, it's the bathroom!

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I quite like the way these stairs divide the space.

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It's far enough away from the kitchen to be acceptable.

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I quite like that. And there's plenty of room in there

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to maybe think about a shower cubicle,

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so you could rearrange that so it really works to your advantage.

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It's this little corridor that's rather unusual.

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This here is a partition wall.

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Let's get rid of that and open up this room

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and you can incorporate this as part of your kitchen.

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I think that would really work well.

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# In every nook and cranny

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# Could I see it there?

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'This flat is a conversion in a three-storey building.

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'Now, I have mixed feelings about conversions,

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'as sometimes you do end up with rather odd proportions and useless spaces.

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'This one isn't too bad on that front, but there are no period features, which is a shame.

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'One other point to consider with conversions is soundproofing,

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'as it's often not very satisfactory.

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'But there are more obvious areas that require attention here.

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'That kitchen is definitely beyond rescue.

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'However, after a bit of research, I feel brighter by the minute.'

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Now, I know this is a popular rental spot,

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and with the guide price of £80,000,

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I think this little flat could provide a very exciting yield.

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Time to get my calculator. Bear with.

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So, you could rent the flat out for £900 per month,

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which is £10,800 per year.

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If you spend let's say £10,000 on the refurbishments,

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then that is a total outlay of £90,000.

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Divide your rental income by your total spend, times 100,

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well, you have a rental yield of 12 percent!

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That is fantastic!

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As I suspected, this could be a great rental machine.

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# You got the money-maker

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# Show them your money-making

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# Get out, out, out

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'If someone bought this property for around the guide price of £80,000

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'it could be a real money-maker.

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'Let's find out if a local estate agent agrees.'

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The £80,000 guide price is a very good guide price.

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There's hardly any properties in Southeast London you can get for under £100,000.

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The works needed on this flat would be a new kitchen, new bathroom,

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rewire, new plumbing, and reskimming all of the walls, at least.

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'How much could this flat sell on for?'

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I think if the flat was renovated and it was renovated well,

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I think you'd get between £160,000 and £170,000.

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'Do his potential rental figures tally with mine?'

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In terms of rental, the property would rent for £900 per calendar month.

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Well, it might only have one bedroom, but the proportions of this flat work well.

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And with some modernisation, it could provide a great rental income for someone.

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However, I still feel there is some potential to improve that layout further

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and really make the most of the space on offer.

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And no-one is going to argue with that guide price.

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Let's see who seized the opportunity when we went to auction.

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Who'd like to get me started on this? 80,000 anywhere?

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Should be worth that all day long.

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How much? OK, we'll start there. Who said that?

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Both together, yeah? OK, 70, we'll start there.

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71 if you want. 71. 72.

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73. 74.

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75.

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76. 77.

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78. 79.

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80,000. 81.

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81. 82?

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Yes?

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No? OK. With you, £81,000 on my right.

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Thank you, 82. 83.

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84. 85.

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86. 87.

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88.

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89.

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89. 90,000. 91.

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91. 92. 93.

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Still cheap. 93. 94.

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95. 96.

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96. 97.

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98. 99.

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100,000, back in, nearly.

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101.

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Back with the guys on my left. £100,000. Against you on my right.

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Anybody else for lot 164?

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If not, 100 for the first,

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100 for the second,

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-100 for the third and final time. All done?

-HAMMER BANGS

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'Nipping in with that winning bid was Moheet.

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'Property development's a bit of a sideline for him,

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'with three properties he lets out.

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'His real job is being a solicitor.'

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# You're the legal man

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# You've got to prove that you're no liar

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'I met up with him at his latest purchase

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'to hear about his plans for this flat.'

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-Moheet, congratulations.

-Thank you.

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What about this property did you like so much? Did you view it and do your homework?

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Erm, I never physically viewed it myself from the interior.

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I sent my father to have a look

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and he said, "Yeah, it's fine, just cosmetically it needs updating,

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"but otherwise, it's in a good location, good area, just off the high street," so I went with that.

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-So you feel happy you've got yourself a good property?

-Yes, I do.

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'And I agree. Moheet's faith in his father's judgement has served him well.'

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# Father knows best

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You're a solicitor. How do you combine that with property?

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Well, I work full-time as a solicitor,

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I have my own business in Shoreditch, East London,

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and property I do on the side.

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So I put time aside and look through auction catalogues, speak to local agents,

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and I have a general keen interest in property.

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It's quite handy, as well, solicitor, property developer,

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it does kind of go hand-in-hand in a way.

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-Yeah, exactly. I don't have to pay anyone to read the legal pack.

-Brilliant!

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-Yeah.

-Do you read your own legal packs?

-Of course.

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-And you understand it!

-Yes.

-Which is brilliant, cos not many people do!

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I know. I've heard a lot of stories, even clients of mine buy something without reading the legal pack.

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'For most mere mortals, the legal pack is a mighty tome.

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'But for Moheet, it's little more than light reading.

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'He believes that with the experience he's gained from previous renovations,

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'this will be a straightforward development.

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'He has a healthy budget of £10,000

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'with a £2,000 contingency

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'and hopes to have this flat ready to let in eight weeks.'

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Now, I think the best way to add value to a property, of course,

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-is to either extend or to find areas that you can improve on.

-Yes.

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What are you going to do with this flat? Because it is very small. How do you think you can improve this?

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Well, it needs a major renovation. I intend to put in a new bathroom, new kitchen,

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there is a wall which I intend to take down, as well, to make the property feel a lot bigger.

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Look at this. That's a waste of space!

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You can get rid of that wall for starters and you can really open this room up.

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Yes. I'd like to take that wall down.

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It would create a bit more space, make the living room/kitchen feel a lot bigger.

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I don't think it serves any particular purpose whatsoever.

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One of the nicest things in this room is that rather grand window.

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But you've got a whole stack of units and a sink going right across it

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and you really lose the proportions of the window.

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What about putting the kitchen somewhere else, against another wall, along there, for instance?

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I have been advised by a building contractor who came to see the property that

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that is probably the best location, so you get full functional use of the window.

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It looks odd but I think we'll try and fit it on that side of the room.

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-It's been fantastic meeting you today. Good luck.

-Thank you.

-I look forward to seeing what you do.

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-Thank you very much.

-Good luck.

-Thank you.

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Well, anybody that enjoys reading a legal pack and understands it

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gets a gold star from me.

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I like the fact that Moheet trusted his dad's judgement

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and he bought himself this great little flat for a decent price.

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So far, there seems to be no strings attached here,

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but when it comes to property, we all know that appearances can be deceptive.

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Will this really be a project without an incident for Moheet?

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Join me later in the show and you can find out.

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'This is County Durham in the Northeast of England

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'and I'm near the coastal town of Seaham.

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'With its stunning cliff-top views over the harbour and restored beach,

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'it's no surprise that Seaham now thrives on tourism,

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'while the rows and rows of red-brick terraces

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'reflect the town's rich history of mining.

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'All this is just a short bus journey from the ex-colliery village of Murton, where I'm off to today.'

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Well, the property I'm here to see has certainly got great transport links.

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Right outside it is a bus stop. Good stuff.

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It's actually this here. It's a three-bed semidetached on a corner plot.

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Had a guide price of 59,950 quid. Let's take a look.

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'OK, it might be rather close to the bus stop,

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'but this former local authority house does appear to be in good condition.'

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Oh, nice big entrance. I like that.

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Somewhere to hang your coats. That's what you need, practical space.

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Stairs up to bedrooms and bathroom. Nice size living room there with a bay window, so that's good.

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Down a slightly dark corridor, through to the kitchen.

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This is where it starts to go a bit strange, cos in terms of kitchen units,

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a little bit minimalistic. And, obviously, if you like tongue and groove, it's ideal.

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But I don't think this is making the most of the space, for sure.

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I would, I think, be radical. Knock out the whole of this wall,

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make it a really through-flow kind of feel to this lower part of the house.

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So you've got the lounge there, a sort of lounge/dining room area here.

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Open that out with a set of French doors and Bob's your uncle!

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'Yes, taking out that dividing wall would do wonders for the layout

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'and no doubt make it a more desirable home.

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'Through the kitchen door is a handy little utility area.

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'But if you think this ground floor layout needs a bit of attention, just take a look upstairs.'

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Well, one part of the property that is completely disastrous is the bathroom.

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As you can see, they've built the bath into this little alcove.

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It's horrible, it's claustrophobic,

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and if you change nothing else in this house,

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that has to go!

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-HE SIGHS

-Calm down. Deep breath.

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Meanwhile, up here, lots of space. Three decent size bedrooms, a separate loo.

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Phew.

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'Thank goodness for those three bedrooms. There are two at the front,

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'one large and one not so large, while at the back of the house,

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'there's a good size bedroom which has the slight look of a sauna about it.

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'Definitely a house for tongue and groove enthusiasts.

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'So, like the rest of the house, those bedrooms need work.

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'Now for the garden, carefully avoiding that bathroom on the way down.'

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Well, at the rear of the house, not a huge amount of space,

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as the corner plot disappears to a triangle at this point.

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But a few nice shrubs and fairly low-maintenance because of all this concrete.

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But while we're out here, take a look at the back, which you should always do when you visit a property.

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As you can see, nothing too scary. We've got hardwood windows but only single-glazed.

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The guttering and the fascia boards could do with a bit of a paint.

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But nothing out here too much that frightens me.

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'As long as I don't go near that bathroom.

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'But overall, apart from its layout issues, it's a great little property with bags of potential

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'for that guide price of £60,000.

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'Time for a second opinion, so we asked a local estate agent

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'for his thoughts on this three-bed semi in Murton.'

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First impressions of the property, it seems structurally sound.

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There's no sign of any rising damp, no sign of any penetrating damp,

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which would tend to suggest the roof's in good order.

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I think first on the list of things to do would be a new kitchen,

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maybe an alteration of the layout of the kitchen,

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a new bathroom and a general overhaul, which would include redecoration and some reskimming.

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'Just what I thought. Great minds... But is this three-bed semi right for the Murton property market?'

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There's certainly a demand for this sort of property in both sales and rentals.

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Thankfully, it's in quite a low price bracket, which will attract first-time buyers.

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It'll attract the small family, as well, because it's a three-bedroom property.

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'What sort of returns could this place achieve, first if sold on?'

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Once renovated, I'd expect the property to achieve between £85,000 and £90,000.

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-'And if let?'

-Once renovated, I would think this would achieve

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between £475 and £495 per calendar month.

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So, a good, solid house with loads of space.

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Yes, it needs a bit of work, especially the kitchen and bathroom, surprise, surprise,

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but in general, a good one to go for.

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Let's see who agreed when it went under the hammer.

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Lot number 38. We've got this with a price guide of £60,000.

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Anyone want to pay and give me 60,000?

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58? 56?

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55,000 anywhere?

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One bid of 55. I can't sell it at that, but we're off and running.

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Anyone want to play in? Anything further?

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56,000 on the front row. 57? I'll take 500.

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I'm going to sell to the lady at 56. I'm selling it once at 56.

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For the second time at £56,000.

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-HAMMER BANGS

-Sold to the lady on the front row at £56,000.

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Buying at auction's easy, isn't it? One bid and you're in.

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'Easy-peasy in this case, that's for sure.

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'That successful and only bid made by Julie

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'was on behalf of her son and his partner, Nicole.

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'Nicole came to meet me at the property without her partner, Richard.

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'It turns out he's a very busy man,

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'as he couldn't even make it to the auction,

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'where they managed to get the three-bed semi for £56,000,

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'£4,000 under the guide price.'

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-Nicole, lovely to meet you.

-Nice to meet you, too.

-Congratulations.

-Thank you.

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-Tell me why you wanted to buy this place.

-It's very close to our farm,

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just up the road, a turkey farm up in Murton.

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-A turkey farm?

-A turkey farm.

-Oh, wow!

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For Christmas. Someone's got to do it.

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So we wanted this property because we want to make a bit of an investment

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but we want to move into somewhere straight away.

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-So it's to live in?

-Yes.

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I hardly see my partner at the minute, cos with him being a farmer,

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he's working an average of 14 hours a day, so I hardly see him,

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so we want to live together and hopefully one day move into the farmhouse

0:19:400:19:43

and the money off the house when we resell will hopefully go towards a bungalow for his mother and father.

0:19:430:19:48

-OK. Great. So quite convenient, where it's located.

-Yes.

0:19:480:19:52

You go up the main road, turn right and it's there.

0:19:520:19:55

-And that was one of the main reasons for buying this.

-Yes. It's so close.

0:19:550:19:59

-Tell me more about the farm. How many turkeys have you got?

-About 500.

0:19:590:20:02

-500? Free-range?

-Yes. They all live outside and come in on a night when they're ready.

0:20:020:20:07

-Do they?

-Yes. HE LAUGHS

0:20:070:20:09

-What do they do at night? They don't go up on perches like chickens, do they?

-I don't know.

0:20:090:20:14

I haven't really sat in enough to know.

0:20:140:20:17

# Gobble-diddle-ip, gobble-gobble-diddle-ip

0:20:170:20:19

# Gobble-diddle-ip, gobble-gobble-diddle-ip

0:20:190:20:22

# Come on, let's turkey trot

0:20:220:20:25

# Let's get it while it's hot

0:20:260:20:29

'Whisper it quietly, but it seems that getting this place

0:20:290:20:32

'has killed two birds with one, well, auction bid.

0:20:320:20:35

'Nicole and Richard will have a home together, and when done,

0:20:350:20:38

'it'll provide the finances for a new house for Richard's parents.

0:20:380:20:43

'So let's talk turkey about what the couple have planned here.'

0:20:430:20:46

This house is a bit of a project.

0:20:460:20:49

Hopefully, getting it at the price we did, it'll be a bit of an investment.

0:20:490:20:52

There is work to be done to it, but it's not loads.

0:20:520:20:55

We can just move in straight away and just do things as we can afford it.

0:20:550:20:59

Right. OK. Have you got a budget for what you're planning?

0:20:590:21:02

No, we haven't. Just as we can afford things, we're going to do it.

0:21:020:21:05

So at the moment, zero budget?

0:21:050:21:08

-Well, budget of how much we can afford out of our bank accounts.

-Right.

0:21:080:21:13

So, what are you going to do, then, to start off with?

0:21:130:21:16

I think we'll start in here, in the kitchen.

0:21:160:21:19

It's a dining room at the minute, but we're going to move the kitchen into here,

0:21:190:21:23

make an L-shape of units

0:21:230:21:25

and then really work on the bathroom, cos the bathroom is in much need of looking at.

0:21:250:21:29

Right. It's currently two, isn't it? A bathroom and a separate loo.

0:21:290:21:32

-Are you going to keep it like that?

-No. Knock the wall through, make it into a longer bathroom,

0:21:320:21:37

and the bath with the tower at the end,

0:21:370:21:41

-we're going to knock that through so it's an actual bathroom and not a little corner to hide in.

-Right.

0:21:410:21:46

-So that doesn't come for no budget.

-No, it doesn't.

0:21:460:21:51

-How are you going to cope with it?

-We'll just save and then we'll do it when we can.

0:21:510:21:56

-Literally a bit at a time.

-Yeah. Sounds crazy, but yeah.

0:21:560:21:59

-Well, no! But in the meantime, you're going to be living here.

-Yes. Move in as soon as we get the keys.

0:21:590:22:03

It's obviously difficult for young people to get on the property ladder at the moment.

0:22:030:22:08

-How have you managed to achieve this?

-Well, it's going to be part of an investment with the farm.

0:22:080:22:13

Richard's now becoming a partner, so his first investment is going to be to do up this house

0:22:130:22:18

so we can live together, but at the end of it, we will be able to sell it on

0:22:180:22:22

or rent it and get something from it.

0:22:220:22:25

'Whether they decide to sell or let this investment,

0:22:250:22:28

'it will provide income to go towards a new house for Richard's parents,

0:22:280:22:32

'which will most likely be built on the farmland.

0:22:320:22:34

'As with their unknown budget and the timescale for the work,

0:22:340:22:38

'how long they'll be living there is equally up in the air.

0:22:380:22:42

'That will depend on when Richard's parents decide to retire.'

0:22:420:22:45

-Tell me a bit more about you.

-I'm at university studying photography.

-Oh, wow.

0:22:470:22:50

Part-time working on the farm with children and animals.

0:22:500:22:55

-And in terms of property renovation, have you ever done any?

-No, none.

0:22:550:22:59

-Are you going to get involved with the actual renovation?

-Oh, yeah, definitely.

0:22:590:23:03

With Richard working long hours, I'll have to do things when he can't, and then when I'm busy, he can.

0:23:030:23:08

-Any DIY experience at all?

-I can paint. HE LAUGHS

0:23:080:23:13

Well, that's a good start. And presumably stripping wallpaper.

0:23:130:23:16

-Yes.

-And taking things to pieces.

-Mm-hm.

-Doesn't requite too much skill.

0:23:160:23:20

-No, not really. Don't think so.

-Well, listen, congratulations.

-Thank you.

0:23:200:23:24

-Good luck. We'll look forward to seeing how you get on.

-OK. Thank you very much.

0:23:240:23:28

Well, it seems this place is absolutely ideal for Nicole and her partner.

0:23:290:23:34

Bit of work to do to sort it out, but just as well there isn't too much

0:23:340:23:38

when you haven't got any budget whatsoever.

0:23:380:23:41

Will she manage to turn this slightly ugly duckling into a beautiful swan?

0:23:410:23:46

Hopefully not a turkey. You can find out later in the show.

0:23:460:23:51

'Coming up, there are plenty of shocks at this Stoke property.'

0:23:510:23:55

What a surprise this place is turning out to be.

0:23:570:24:00

'Back in County Durham, it's been hard work for Nicole's boyfriend, Richard.'

0:24:010:24:07

Scrambling about under these floorboards for days on end isn't a great deal of fun.

0:24:070:24:11

'But first, nothing was safe when Moheet got going.'

0:24:130:24:17

We stripped the whole place out and we've had a complete renovation.

0:24:170:24:21

'Time to return to sunny Sydenham in Southeast London

0:24:260:24:30

'and this one-bedroom ground-floor townhouse conversion

0:24:300:24:33

'which had a guide price of £80,000 at auction.

0:24:330:24:37

'While it was certainly small, it was far from perfectly formed.

0:24:390:24:44

'Poorly converted and maintained, its dark corners were crying out for a face-lift.

0:24:440:24:49

'The flat was purchased at auction by Moheet for £100,000.

0:24:530:24:58

'He's a solicitor and part-time property developer.

0:24:580:25:01

'He planned to transform the place from small and dingy to compact and desirable.'

0:25:030:25:09

What are you going to do with this flat? Because it is very small.

0:25:090:25:11

It needs a major renovation.

0:25:110:25:13

I intend to put in a new bathroom, new kitchen.

0:25:130:25:17

Look at this. That's a waste of space.

0:25:170:25:19

Yes. I'd like to take that wall down.

0:25:190:25:21

I don't think it serves any particular purpose whatsoever.

0:25:210:25:25

'So nine weeks later, we're back.

0:25:250:25:28

'Has Moheet made the most of this auction lot?'

0:25:320:25:35

# Making the most of what we have got

0:25:350:25:39

# I know that it's not a lot

0:25:390:25:41

# Making the most of what we have got

0:25:420:25:46

# I know that it's not a lot

0:25:460:25:49

# But it's gonna have to do

0:25:490:25:52

'It's evident that work is still underway,

0:25:540:25:57

'but just as evident that Moheet is close to completing

0:25:570:26:01

'the cosy, comfortable and modern flat he'd envisaged.'

0:26:010:26:05

# Making the most of what we have got

0:26:050:26:09

The first thing we did was get a skip and throw everything out.

0:26:090:26:14

And we've done a complete renovation, so we've renovated the bathroom,

0:26:140:26:18

we've moved the kitchen from the window along the wall

0:26:180:26:22

and we've taken the skirtings out, we've taken the flooring out, taken the doors out and replaced them all.

0:26:220:26:28

'Moheet has made the most out of the compact kitchen and living space.

0:26:290:26:33

'He has opened up the area around the window, just as I'd hoped he would.

0:26:330:26:38

That allows the window to become a feature of the room.

0:26:380:26:41

'And by removing the partition wall,

0:26:430:26:46

'he has maximised the floor space available.'

0:26:460:26:48

What we have done is, there was a partition wall between the kitchen and the hallway.

0:26:490:26:56

That's come out. Removing the wall in the kitchen has made a big difference to the space

0:26:560:27:01

and it makes the flat feel a lot bigger.

0:27:010:27:03

'The flat now has a smoother flow from one room to the next.

0:27:050:27:08

'By opening it up, Moheet has allowed natural light

0:27:080:27:12

'to eliminate the dark corners.

0:27:120:27:15

'And his transformation of the bathroom

0:27:150:27:17

'has added a touch of the wow factor.'

0:27:170:27:21

The bathroom was a complete mess when we bought it,

0:27:210:27:25

so we stripped everything out,

0:27:250:27:27

we've put in a new toilet, a new sink, new bath, new flooring

0:27:270:27:32

and retiling, done a small feature wall, as well.

0:27:320:27:37

'It's lovely little touches like this and the refurbished sash windows

0:27:370:27:42

'which have helped to elevate this renovation.

0:27:420:27:45

'Moheet has also installed a new boiler and central heating system.

0:27:450:27:49

'The electrics have been serviced and certified

0:27:490:27:52

'and the walls and ceilings have been replastered.

0:27:520:27:55

'He had a £10,000 budget with a two grand contingency.

0:27:550:28:00

'Did he manage to stay on track?'

0:28:000:28:02

I've come on budget. I don't know the exact figures,

0:28:020:28:05

but I know that I haven't spent more than ten.

0:28:050:28:08

'Moheet is confident he will be on budget when the work is finished here.

0:28:080:28:13

'Added to his purchase price of £100,000,

0:28:130:28:16

'that will mean a total outlay of 110 grand.

0:28:160:28:20

'He is a bit behind schedule, though, having hoped to have the renovation completed in eight weeks.

0:28:210:28:27

'But is he happy with the development?'

0:28:270:28:29

I think the overall renovation has gone very well.

0:28:300:28:34

It's nice and a light space to live in

0:28:340:28:37

and I think there's been some good changes to the place.

0:28:370:28:41

'We asked two local estate agents to give us their opinion

0:28:450:28:49

'on Moheet's renovation.'

0:28:490:28:51

Looks nice and cool and fresh. Little bit on the small side.

0:28:530:28:56

The bathroom's very high spec, very boutique.

0:28:560:29:00

Very nice indeed.

0:29:000:29:02

I believe the property has been nicely presented, good location.

0:29:020:29:05

It's slightly on the small side.

0:29:050:29:08

It's got a quirky layout, which will deter some but will be attractive to others.

0:29:080:29:12

Generally, I think it's a nice first-time purchase, nice one-bed flat.

0:29:120:29:16

'Moheet is undecided whether to sell up or rent out.

0:29:170:29:21

'Perhaps the estate agents' valuations will help him decide.'

0:29:210:29:25

On the rental market, I believe it would achieve

0:29:270:29:29

somewhere between £750 and £800 per calendar month.

0:29:290:29:32

On the rental side, I believe it would achieve £800 per calendar month.

0:29:320:29:35

'£800 per calendar month would earn Moheet a yield

0:29:370:29:40

'of just over 8.5 percent. Is he happy with that?'

0:29:400:29:45

I was expecting more around the £900 a month figure.

0:29:450:29:49

But it's OK.

0:29:490:29:51

'Perhaps the sell-on valuations will be more to Moheet's liking,

0:29:520:29:56

'bearing in mind his total spend of around £110,000.'

0:29:560:30:02

If I was to put the property up for sale,

0:30:020:30:04

we would expect to achieve in the region of £150,000.

0:30:040:30:07

I would value the property at between £165,000 and £170,000.

0:30:070:30:12

'Those valuations, if achieved, would give Moheet a profit

0:30:120:30:16

'of between £40,000 to £60,000, minus tax and expenses.

0:30:160:30:21

'Is resale a more attractive proposition?'

0:30:220:30:25

That's within my expectation. The 150 mark was what I was expecting.

0:30:250:30:29

So anything above that is great.

0:30:290:30:32

# Making the most of what we have got

0:30:350:30:38

# I know that it's not a lot

0:30:380:30:41

'Well, they say the best things come in small packages

0:30:410:30:45

'and this one could deliver Moheet a big profit.

0:30:450:30:48

'So, is it enough to tempt him back to another auction?'

0:30:480:30:52

Definitely, yes, I will be doing this again.

0:30:520:30:54

'I'm in Staffordshire, where the potteries industry all started,

0:30:590:31:04

'and you can still see its legacy all around.'

0:31:040:31:07

# China in your hand

0:31:070:31:09

Well, it's lovely to see the old potteries integrated into the regeneration of the area.

0:31:090:31:15

This one is 200 years old and Grade II listed.

0:31:150:31:19

And since it closed as a pottery, it's been used as a brush factory,

0:31:190:31:22

a restaurant, and now it's a design studio.

0:31:220:31:25

Before that, though, it was a jazz club.

0:31:250:31:27

I wonder if the property I'm here to see will be modern or traditional.

0:31:270:31:31

'The auction lot I'm viewing is located in the Stoke suburb of Shelton,

0:31:320:31:37

'home to the main Staffordshire University campus.

0:31:370:31:40

'So, not surprisingly, Shelton has a large student population.'

0:31:400:31:45

Well, the property I'm here to see is a house which has already been converted into two flats.

0:31:450:31:51

Guide price was £45,000.

0:31:510:31:55

This is it. It looks a little bit grubby from the outside,

0:31:550:31:59

but one thing you've got to say, it's huge!

0:31:590:32:01

So for that money, it's looking good already.

0:32:010:32:05

Definitely one of those properties that I don't know what I'm going to find

0:32:070:32:10

until I step through the front door.

0:32:100:32:13

But what have we got? Well, as I said, it's been converted into two flats,

0:32:130:32:17

upstairs there and downstairs here. Before I go any further,

0:32:170:32:21

one thing when you are converting it's worth considering the cost of is splitting the electricity.

0:32:210:32:27

If you have a house, it normally has one supply of electricity coming into it.

0:32:270:32:31

Converting it into flats, you have to have those electricity supplies split into two

0:32:310:32:35

and that can be terribly expensive.

0:32:350:32:37

In this case, there are two meters, so the good news is that all that's been done.

0:32:370:32:41

Obviously, it has been operated as two flats.

0:32:410:32:44

Into the ground floor one and doesn't look too bad.

0:32:440:32:48

A bit shabby around the edges and in need of renovation.

0:32:480:32:52

But in terms of space, what a lovely surprise.

0:32:520:32:54

This room here, two bay windows, absolutely great.

0:32:540:32:59

No obvious signs of structural problems. A bit of damp here and there but nothing too worrying.

0:32:590:33:04

What does cause me a little bit of concern is the blindingly obvious,

0:33:040:33:08

which is the fact that there are these security shutters on the windows

0:33:080:33:12

and the glass in most of the windows, as it turns out, has been broken, probably vandalised.

0:33:120:33:18

You do have to factor that into your thought processes.

0:33:180:33:22

Why has that happened? Is it something which happens a lot around this area? I don't know.

0:33:220:33:27

I'd want to talk to the neighbours and maybe chat to the police,

0:33:270:33:30

find out what the situation is.

0:33:300:33:32

And then, when you come to do renovations,

0:33:320:33:35

just be aware that security might be a bit of an issue.

0:33:350:33:39

# I want security, yeah

0:33:390:33:43

# And I want it at any cost

0:33:430:33:46

'Also in the ground-floor flat, next to the front door,

0:33:470:33:50

'there's a very large bedroom with this bay window.

0:33:500:33:54

'Then down a long corridor at the back, there's a second, much smaller bedroom,

0:33:570:34:02

'plus a small, very dusty and grubby-looking bathroom, although the suite may be salvageable.

0:34:020:34:07

'But the kitchen's been totally stripped out.

0:34:070:34:09

'The boiler remains, but if this property has been vandalised,

0:34:090:34:13

'there could be lots of pipe work missing.

0:34:130:34:16

'However, this auction lot certainly has a lot of square-footage for that guide price for £45,000.

0:34:160:34:23

'Let's see if the flat on the first floor is as spacious and as damaged.'

0:34:230:34:28

So, into the upstairs flat, and round that way you've got your living area,

0:34:280:34:33

a tiny little room and your first bedroom,

0:34:330:34:36

but then, once again, the TARDIS-like qualities of this place

0:34:360:34:39

just come brimming to the fore.

0:34:390:34:42

Down this corridor, a second bedroom, a bit smaller.

0:34:420:34:45

A little area for your boiler. A bathroom and loo. I think that's pretty serviceable.

0:34:450:34:50

But then through into the kitchen.

0:34:500:34:53

Not a bad size space, but again, lots of work required.

0:34:530:34:56

But, you know, what a surprise this place is turning out to be.

0:34:560:35:00

Yes, there's work to be done, but boy, oh, boy, have you got the space to do it in!

0:35:000:35:04

# Boy, oh, boy

0:35:040:35:06

# Boy, oh, boy

0:35:070:35:09

'So, as with the ground floor, there's a double-aspect living room on the corner of the property

0:35:110:35:16

'and a large bedroom at the front, plus a selection of rooms off the corridor.

0:35:160:35:20

'But all the bedrooms are different shapes and sizes.

0:35:200:35:24

'Outside, there's another downside to this lot, that went to auction

0:35:250:35:29

'with a guide price of £45,000.'

0:35:290:35:32

So, the internal space is a real delight.

0:35:330:35:37

Sadly, you can't say the same for the outside.

0:35:370:35:40

What, no garden? No, there isn't, actually.

0:35:410:35:44

All there is is this little bit of concrete at the front here.

0:35:440:35:47

Now, that needn't necessarily be a bad thing,

0:35:470:35:50

because if you are looking to rent this place out, one thing tenants don't generally do

0:35:500:35:54

is look after gardens, so the fact that there isn't one could actually be a bonus.

0:35:540:35:58

'We asked a local estate agent for his thoughts

0:35:590:36:02

'on what could be done to this property.

0:36:020:36:05

There is a possibility to turn the house into one large family house

0:36:070:36:13

or possibly to rent the rooms individually to students.

0:36:130:36:17

But I see the more likely option

0:36:170:36:19

to keep the property in its current layout

0:36:190:36:22

and just get the return for two flats.

0:36:220:36:25

'How much rental income could be earned here?'

0:36:250:36:28

Once renovated, I would anticipate a rental return

0:36:280:36:31

in the region of £400 per calendar month per flat,

0:36:310:36:36

which would be a very good return.

0:36:360:36:38

'What about the resale value if the property was sold on as one unit with both flats together?'

0:36:380:36:44

I would anticipate for the resale value of the properties,

0:36:440:36:48

the properties would be resold as one lot

0:36:480:36:53

and I would anticipate the value in the region of £90,000.

0:36:530:36:59

I know it doesn't look much, but this place could actually turn out to be a financial gem.

0:37:000:37:06

Get the numbers right and the yields could be phenomenal.

0:37:060:37:09

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

0:37:090:37:13

We move on. Lot 43.

0:37:130:37:15

A substantial double-fronted end-of-terrace house.

0:37:150:37:18

Shall we say 40 to start it? 40 bid, standing left.

0:37:180:37:22

£40,000. At 40.

0:37:220:37:25

41. 41.

0:37:250:37:27

42. 43. 44.

0:37:270:37:31

'There were several interested bidders and we rejoin the auction at £49,000.'

0:37:310:37:35

49,000, seated left. Another 500 anywhere else?

0:37:350:37:39

49,500. 50? 50.

0:37:410:37:44

Another 500? 50,500.

0:37:440:37:47

51? 51.

0:37:470:37:49

No?

0:37:490:37:51

At £51,000, then, seated left. All done?

0:37:510:37:54

51, then, first time.

0:37:540:37:57

51 second time. You're together, aren't you?

0:37:570:38:00

You're not? Well, I saw him first. 51. 52, sir?

0:38:000:38:05

52.

0:38:050:38:07

53.

0:38:070:38:09

53 and a half. 54.

0:38:100:38:13

54 and a half.

0:38:130:38:15

55. 55 and a half.

0:38:160:38:19

No? 55 and a half, seated left.

0:38:190:38:22

Somebody want to come in at the back?

0:38:220:38:24

At 55,500, seated left. Gentleman's bid, no mistake.

0:38:240:38:29

55,500 for the first time.

0:38:290:38:31

55,500 for the second time.

0:38:310:38:34

-Third and final time at 55,500.

-HAMMER BANGS

0:38:340:38:38

You bought it, sir, well done. You've got to be quick, madam.

0:38:380:38:41

'Unfortunately there's little time for hesitation in an auction.

0:38:410:38:44

'Although it might be a bit unnerving sitting right next to a rival bidder.

0:38:440:38:49

'But it looks like there weren't any hard feelings.'

0:38:490:38:53

# You can come first after me

0:38:530:38:56

# Don't you worry about the way it could be

0:38:560:38:59

'It was local businessman Martin

0:39:010:39:04

'who paid £55,500 for these two flats.

0:39:040:39:08

'I met up with him and his wife, Kara, to find out more.'

0:39:090:39:13

Martin, Kara, great to meet you both. Congratulations. Right then, you bought this place. Why?

0:39:150:39:21

Well, we wanted another rental property, really.

0:39:210:39:24

So that we could... This is already converted into two apartments.

0:39:240:39:28

It's readily split, so minimal cost and hopefully a reasonable return.

0:39:280:39:33

So this is something you do as a business or part-time?

0:39:330:39:36

-Just in our spare time. Yes.

-What do you do when you're not doing this?

0:39:360:39:40

-Well, I work at my local hospital as an NHS manager.

-Oh, great.

-Yeah.

-And what do you do, Martin?

0:39:400:39:46

-I run a design and marketing company just around the corner.

-OK, that's convenient.

0:39:460:39:49

-Why this house particularly?

-It's cheap.

0:39:490:39:52

Secondly, its location. It's ideal for student lets because there's the university just down the road.

0:39:540:40:01

As well as the location and the price, what was it about the house that you like, Kara?

0:40:010:40:05

Well, I'd never actually seen it before Martin went to the auction and bought it,

0:40:050:40:09

so I can't actually say I liked anything at that point.

0:40:090:40:12

What did you think when you walked through the door?

0:40:120:40:15

-It's better than the last one we bought because it's actually got walls.

-What?

0:40:150:40:20

-SHE LAUGHS

-It's an improvement.

0:40:200:40:22

-Tell me more!

-Well, it had been used for all sorts of things.

0:40:220:40:26

So the previous owner had knocked down the walls, taken out the ceilings.

0:40:260:40:31

So, yeah, this one has at least got windows and doors and walls.

0:40:310:40:34

'It's all relative, I guess.

0:40:340:40:36

'Martin and Kara have obviously dealt with bigger projects than these two flats before.

0:40:360:40:41

'And although they're property part-timers, they do seem quite busy,

0:40:410:40:46

'with one house currently undergoing refurbishment

0:40:460:40:48

'and another ready and up for sale.

0:40:480:40:51

'This property is one they're hoping to hang on to and let out.

0:40:510:40:55

'I wonder what their plans are here. Will they change the layout?'

0:40:550:40:58

First of all, I'm not sure about this floor having three bedrooms or two.

0:40:580:41:04

The third one is tiny, to say the least. If not, it's going to be a study.

0:41:040:41:08

All the electrics and plumbing are already separated, so there's no cost with doing that.

0:41:080:41:13

The upstairs kitchen, we'd like to keep the carcasses, possibly the doors, we're not sure yet. We'll see.

0:41:130:41:17

The downstairs kitchen is going to be completely, you know, start again with it, really.

0:41:170:41:21

Bathrooms, again, they may be all right.

0:41:210:41:23

If they are, I'll keep them. If not, we'll change them.

0:41:230:41:27

Have you worked out the numbers? The kind of returns you might expect?

0:41:270:41:30

Spoke to one estate agent and they were sort of saying,

0:41:300:41:33

"Oh, you might get £550 a month for one flat, and perhaps £450 for the other."

0:41:330:41:38

So if we take a conservative 400, 425, what kind of returns would that generate?

0:41:380:41:43

That would give you a yield of probably just under 15 percent.

0:41:430:41:46

# Good enough

0:41:460:41:47

# For you it's good enough

0:41:470:41:51

'Well, a 15 percent yield is definitely very healthy.

0:41:510:41:54

'Of course, the exact return will depend on what rent they achieve

0:41:540:41:58

'and how much they have to spend to get everything done.

0:41:580:42:01

'They intend to project-manage this refurbishment rather than do the work themselves.'

0:42:010:42:06

-What is the budget for this, then?

-Depending on what the bathrooms are like once we clean those up,

0:42:060:42:12

-I anticipate £8,000 to £10,000.

-What, for the whole thing?

-Mm.

0:42:120:42:15

-Including windows?

-Well, windows is just glazing. The actual frames are fine.

0:42:150:42:19

As long as you get the right size, they just pop straight back in.

0:42:190:42:22

Now, when you see a property that has been so badly vandalised,

0:42:220:42:25

that has got all the security things on the outside,

0:42:250:42:28

it must throw up a few questions.

0:42:280:42:31

I think we were concerned. It's got security shutters, you can't hide that, to keep it safe.

0:42:310:42:36

The area is OK and it's going under regeneration.

0:42:360:42:40

-So I think in the future, it will improve.

-And what kind of timescale?

0:42:400:42:44

We've got a property to finish at the moment which we're working on

0:42:440:42:47

and perhaps put a bit of contingency in for things we may find. So perhaps up to three months.

0:42:470:42:52

-Congratulations to both of you.

-Thank you.

-Good luck with it.

-Thank you.

0:42:520:42:55

-I look forward to seeing how you get on.

-Yes.

-Thank you.

0:42:550:42:58

Well, it seems that out of this ugly duckling

0:42:580:43:01

could grow a very beautiful swan. And a profitable one, too.

0:43:010:43:06

Martin and Kara clearly have got the expertise,

0:43:060:43:08

management and design to sort this place out.

0:43:080:43:11

And it could, if it goes to plan,

0:43:110:43:14

generate that magical 15 percent yield.

0:43:140:43:17

Can't argue with that. See how they get on later in the show.

0:43:170:43:20

"Time is money" is a much over-used phrase.

0:43:230:43:27

But you know what? It's true.

0:43:270:43:29

Yes, if your project runs over schedule

0:43:290:43:31

then your bank balance can take a hit.

0:43:310:43:34

So with that in mind, how have today's buyers been getting on?

0:43:340:43:37

'We head back now to County Durham

0:43:390:43:42

'and the former mining village of Murton.

0:43:420:43:44

'It was here that we met Nicole, a photography student,

0:43:440:43:48

'who'll be moving into this three-bedroom semidetached house with her boyfriend, Richard.

0:43:480:43:53

'He works on his parents' turkey farm nearby.

0:43:530:43:57

'It was bought for £56,000 as a family investment for the young couple to live in

0:43:570:44:01

'until Richard's parents retired from farming.

0:44:010:44:04

'It would then provide them with cash to build a new house.

0:44:040:44:07

'But for now, it was down to Nicole and Richard to turn this into their new home.

0:44:070:44:12

'While it was generally in a decent state,

0:44:120:44:14

'the bare kitchen and a small bathroom did need some attention.'

0:44:140:44:19

There is work to be done to it, but it's not loads.

0:44:190:44:22

We can just move in straight away and just do things as we can afford it, really.

0:44:220:44:26

Right. OK. So have you got a budget for what you're planning?

0:44:260:44:29

-No. We haven't.

-Right.

-Just as we can afford things, we're going to do it.

0:44:290:44:33

-So, at the moment, zero budget?

-Well, budget of how much we can afford out of our bank accounts.

0:44:330:44:39

'And that would apply to their timescale, as well, as they were planning to do

0:44:390:44:43

'whatever was necessary as and when they could afford to do it.

0:44:430:44:47

'When we returned, 19 months later,

0:44:470:44:50

'we caught up with not just Nicole but also Richard and their dog, Holly.

0:44:500:44:55

'So, had time and money helped them transform their new home?

0:44:550:44:59

'Well, it's a good start. The living room is bright and fresh and a new fireplace has been added.

0:45:020:45:07

'It's altogether far more homely.

0:45:070:45:10

'At the back, the couple now have a functioning kitchen with units installed.

0:45:120:45:17

'This is a far more practical space,

0:45:170:45:19

'and while there's still lots to be done on the ground floor,

0:45:190:45:22

'Nicole and Richard are pleased with what they've achieved so far.'

0:45:220:45:27

We love it. Absolutely love it.

0:45:270:45:29

It's been a bit of a challenge, but we've worked at it, haven't we?

0:45:290:45:33

And we've just took our time, as and when we can do things, do them.

0:45:330:45:37

-It's coming along nicely, isn't it? We got there in the end, yeah.

-Yeah.

0:45:370:45:40

'Using the wall at least saves buying a notice board.

0:45:400:45:44

'Upstairs, and while the main bedroom still has the green carpet,

0:45:440:45:49

'the room has been redecorated.

0:45:490:45:51

'The small box room at the front has become an office.

0:45:510:45:54

'While the formerly pine bedroom is now a storage space.

0:45:550:45:59

'But it's been enlarged, and that's because Nicole and Richard

0:45:590:46:02

'have dealt with that rather claustrophobic bathroom.'

0:46:020:46:05

So if you can remember, we had the toilet and the bathroom completely separate.

0:46:060:46:10

We've done a load of hard work to make it all into one bathroom. I'll show you how we've done it.

0:46:100:46:16

So, as you can remember, we had the toilet as a horrible puzzle shape.

0:46:160:46:20

Now, we've knocked down the wall, as you can see here, where it was.

0:46:200:46:24

We've made it a nice long bathroom now. And I'll show you it.

0:46:240:46:28

So, this is our lovely new bathroom.

0:46:300:46:32

As you can see, we've knocked down the wall between the toilet and the original bathroom,

0:46:320:46:36

which has made great use of the space.

0:46:360:46:39

Richard's done a brilliant job of the tiling. Still bits to be finished. But it's fantastic. A great job.

0:46:390:46:44

'Working to the tightest of budgets, in this case, none at all,

0:46:440:46:48

'the couple have renovated the property as and when the money became available.

0:46:480:46:52

'It was down to Richard to do the bulk of the heavy-duty jobs,

0:46:520:46:55

'fitting that bathroom, laying the new flooring and installing the new kitchen.'

0:46:550:47:01

We got the units second hand from a local man,

0:47:010:47:04

which I've then re-decked out in new worktop,

0:47:040:47:07

sink and tiled right round.

0:47:070:47:09

For roundabout the £400 spent, I think it's money well spent

0:47:090:47:13

and a very nice kitchen resulting.

0:47:130:47:16

'Richard has certainly been on a very steep learning curve,

0:47:160:47:19

'never having had any DIY experience before.

0:47:190:47:22

'He tackled the tough labouring jobs himself,

0:47:220:47:25

'but made sure he got certified tradesmen to do the skilled jobs.

0:47:250:47:29

'Richard has put in many hours on this project

0:47:290:47:32

'and had to do a bit of a balancing act with his full-time job on the farm,

0:47:320:47:36

'which has recently branched into rearing lambs.

0:47:360:47:39

'Nicole has also been busy studying for her final year in photography at university.

0:47:390:47:44

'The new office upstairs is now the focus of a new venture for her.'

0:47:440:47:49

I started my own little photography business up, which has been nice, you know,

0:47:490:47:53

just doing it as and when I can. Obviously funds helping the house.

0:47:530:47:57

So it's been good. Doing my own little photography business.

0:47:570:48:00

I go to events and have props and people get dressed up and get instant prints. It's been really good.

0:48:000:48:06

'Let's hope that business "develops" well.

0:48:060:48:08

'Sorry, photography just "lens" itself to some bad puns.

0:48:080:48:13

'Richard, Nicole and Holly still have some way to go before this house is exactly the way they want.

0:48:140:48:19

'But fortunately, time isn't really an issue here.'

0:48:190:48:22

The plan is still eventually to move up to the farmhouse.

0:48:220:48:25

But that's, kind of, upon retirement of my mum and dad.

0:48:250:48:29

Well, that could be five years, ten years, it's very much a case of play it by ear.

0:48:290:48:33

-So I think we'll be staying here for a while, won't we?

-Definitely.

0:48:330:48:37

'So far they've spent about £3,000.

0:48:390:48:42

'Add that to their purchase price of 56,000,

0:48:420:48:45

'and they've invested £59,000 here.

0:48:450:48:48

'We asked two estate agents what they thought of the improvements so far.'

0:48:480:48:53

The improvements made to the property so far are good.

0:48:530:48:56

The central heating has been replaced, which is a good point.

0:48:560:48:59

The bathroom and kitchen have been refurbished.

0:48:590:49:02

And it's certainly got the makings of a nice family home.

0:49:020:49:04

I think they've done very, very well. These types of refurbishments

0:49:040:49:08

do take a long period of time, certainly doing it themselves.

0:49:080:49:11

And from what they've done so far in a short period of time, they've really cracked the knot.

0:49:110:49:15

So at the end of the day, they're certainly onto very good things.

0:49:150:49:19

'Will it turn out to be the investment they wanted?

0:49:190:49:21

'Nicole, Richard and his parents have invested £59,000.

0:49:210:49:26

'They've got time in hand for the value to grow,

0:49:260:49:28

'but what price would the estate agents put on it if it was sold now?'

0:49:280:49:31

If the owners were to price the property in its current condition,

0:49:310:49:34

they should be looking at realising around about £70,000.

0:49:340:49:37

If they were to finish the project, they should realistically be looking at £90,000.

0:49:370:49:41

Currently, I would look to market it around about £65,000.

0:49:410:49:45

With works completed, I would look to market it at between £85,000 and £90,000.

0:49:450:49:49

'The couple reckon on another £2,000 to finish the property.

0:49:510:49:54

'But for now, those valuations would mean a profit of between £6,000 and £11,000.

0:49:540:49:59

'If that upper valuation stayed on track,

0:50:000:50:03

'the top profit on a refurbishment could be a whopping £29,000,

0:50:030:50:07

'minus tax and expenses, of course.'

0:50:070:50:09

-That's fantastic.

-I think that's brilliant!

0:50:110:50:13

-Never expected it to have lifted that much.

-No.

0:50:130:50:16

That's fantastic on what we've spent on it, as well. That's absolutely brilliant.

0:50:160:50:20

'It sounds like good news for Nicole, Richard and his parents.

0:50:200:50:24

'But for the foreseeable future, this will be their home.

0:50:240:50:28

'Despite their limited finances, the couple have at least got the renovation on the road.

0:50:280:50:33

'And although the finish date is some way off, Nicole's already looking forward to the next phase.'

0:50:330:50:38

I guess everyone's the same, they'll always have something to do.

0:50:380:50:41

They'll get everything done and go, "Right, we'll change that bathroom," or, "We'll change the kitchen."

0:50:410:50:46

Cos that's what you do, don't you? You want to keep changing it and making everything fresh and new.

0:50:460:50:50

-Oh.

-SHE LAUGHS

0:50:500:50:53

-I thought once I was finished, I was finished.

-HE LAUGHS

0:50:530:50:56

'Back now to Shelton in Stoke-on-Trent

0:51:060:51:09

'where, from the road, this property would deter many property developers.

0:51:090:51:13

'Judging by the outside, the two flats were clearly in need of attention

0:51:130:51:16

'and weren't any better on the inside.

0:51:160:51:19

'But for Martin, who runs a design and marketing company round the corner,

0:51:190:51:24

'and his wife, Kara, a manager at a local hospital,

0:51:240:51:28

'it was worth every penny of the £55,500 they paid at auction.

0:51:280:51:33

'The couple plan to refurbish the two flats and let them out.'

0:51:330:51:37

-What is the budget for this, then?

-Depending on what the bathrooms are like, once we clean those up,

0:51:380:51:44

-I anticipate £8,000 to £10,000.

-What, for the whole thing?

-Mm.

0:51:440:51:47

-Including windows?

-Well, windows is just glazing. The actual frames are fine.

0:51:470:51:52

As long as you get the right size, they just pop back in again.

0:51:520:51:54

'The couple thought the work would take eight to ten weeks.

0:51:540:51:58

'But it's now seven months later.

0:51:580:52:00

'Martin, Kara and their dog, Ruby, are keen to show us the progress.

0:52:020:52:06

'We'll start in the upstairs flat.

0:52:130:52:15

'And just look at the change.

0:52:150:52:17

'The couple have gone for a neutral colour scheme.'

0:52:170:52:21

# Magnolia, you're sweet

0:52:210:52:26

# You're the best I ever had

0:52:280:52:32

'The work's taken longer than expected,

0:52:340:52:37

'so how is Martin feeling now?'

0:52:370:52:41

Relieved. It's not... it's not finished yet, but we're nearly there.

0:52:410:52:47

What should've been a sprint has actually turned out to be a marathon.

0:52:470:52:51

'Well, as any distance runner knows,

0:52:530:52:55

'you can hit a wall after several miles.

0:52:550:52:58

'But for Martin, there was a window early in the race.'

0:52:580:53:01

We took all the shutters off, changed all the double-glazed units,

0:53:020:53:06

and then three days later, they were all smashed.

0:53:060:53:08

Then the door was kicked in and it was vandalised inside.

0:53:080:53:13

So we repaired all that, and then a few months later, it was broken into again.

0:53:130:53:17

'Ouch! Double-glazed and double trouble.

0:53:180:53:21

'Undeterred, Martin and Kara raced on

0:53:210:53:25

'with a new alarm system to protect the property

0:53:250:53:28

'Downstairs, the entrance hall and double-aspect living room are now looking good,

0:53:280:53:33

'as is the bathroom.

0:53:330:53:36

'Little surprise that the kitchen down here had to be a complete refit.

0:53:360:53:42

'The whole property needed rewiring.

0:53:420:53:45

'The central heating's been sorted.

0:53:450:53:47

'The damp's been treated in the walls, which have been replastered.

0:53:470:53:51

'But this marathon's still got some distance to run.'

0:53:510:53:54

Originally we hoped to have the project finished in eight to ten weeks.

0:53:540:53:58

I think that was our original timescale.

0:53:580:54:00

And then with it getting broken into and vandalised, clearly that put the timescales back.

0:54:000:54:05

So it's taken probably around 10, 12 weeks.

0:54:050:54:09

So we've probably got about another two or three weeks' work in the property.

0:54:090:54:13

# Finish me off

0:54:130:54:17

# Finish me off

0:54:170:54:20

# And set me free

0:54:200:54:22

'And they faced another problem, as the builder they initially employed to project-manage the refurbishment

0:54:220:54:28

'left them halfway through.

0:54:280:54:30

'So Martin took over a lot of the work.'

0:54:300:54:33

With the builder leaving when he did, we had to employ tradesmen to come in.

0:54:330:54:38

We had to pay them by the hour because a lot of tradesmen don't like coming halfway through a project.

0:54:380:54:43

So, consequently, that's cost a lot more than what it originally should've done.

0:54:430:54:47

'Oh, dear. Where else has money been spent?'

0:54:470:54:50

The main expense is all the glazing. Two lots of glazing we had to put in.

0:54:500:54:54

'Well, the budget's gone over a bit.

0:54:540:54:57

'So, how much did all the work cost?'

0:54:570:55:00

I originally anticipated about £8,000.

0:55:000:55:05

That's what it should've cost. So we're now looking,

0:55:050:55:08

probably to finish it, probably just over £12,000.

0:55:080:55:12

'With the £55,500 Martin and Kara paid at auction,

0:55:130:55:17

'that takes their total outlay to £67,500.'

0:55:170:55:22

When we bought these, we wanted to rent these properties out.

0:55:220:55:25

This is really our retirement plan, if you like,

0:55:250:55:29

to make sure we've got some retirement income.

0:55:290:55:31

So I think we still want to go ahead and rent the properties out.

0:55:310:55:36

'To hear what rental income the two flats could generate,

0:55:370:55:40

'we asked two local estate agents for their opinions.

0:55:400:55:43

'How much do they think the refurbishments have increased the value here?'

0:55:430:55:48

It's been finished to a modern and neutral standard,

0:55:490:55:51

which should appeal to a wide range of buyers in the local area.

0:55:510:55:54

It's come a long way from its initial starting point.

0:55:540:55:56

The apartments are very clean, fresh and tidy.

0:55:560:56:00

And it's basically what you would expect from a refurbished property

0:56:000:56:04

possibly coming onto the rental market.

0:56:040:56:06

I think the majority of flats, certainly within the local vicinity, do tend to be purpose-built,

0:56:060:56:11

which means something like this, which is a conversion,

0:56:110:56:13

does add a little bit of character, and there is a shortage of that locally.

0:56:130:56:17

There's two bedrooms to both flats, which is also a good selling point or letting point.

0:56:170:56:22

And they are in a convenient location.

0:56:220:56:24

'Once both flats are finished,

0:56:260:56:28

'how much do the experts think the properties could achieve on the resale market?

0:56:280:56:32

'More than the £67,500 invested in them?'

0:56:320:56:35

Selling the whole property as a unit, you'd look to sell for

0:56:370:56:39

between £90,000 to £100,000.

0:56:390:56:41

I would anticipate the resale value for the total property

0:56:410:56:46

in the region of £100,000.

0:56:460:56:49

'Those valuations would produce a profit of between £22,500 and £32,500,

0:56:490:56:53

'before tax and expenses.

0:56:530:56:56

'It sounds like all the hard work's paid off.'

0:56:560:56:59

-I think that's really good news.

-Yes, it's almost exactly what I thought it would be, actually.

0:57:000:57:06

Yes, although the capital value is really irrelevant at the moment.

0:57:060:57:11

-We're more interested in the rental values.

-Yeah.

0:57:110:57:14

I would anticipate a rental income in the region of £400 per calendar month per flat.

0:57:140:57:20

Each flat would rent for in the region of £350 to £400 per calendar month.

0:57:200:57:23

'If Martin and Kara successfully let both flats,

0:57:230:57:27

'they're looking at a double-digit yield. Pretty useful for their pension pot.'

0:57:270:57:31

-I think that's about what we thought, wasn't it?

-Yes.

0:57:310:57:34

That'll probably give us, ooh, what?

0:57:340:57:37

Around about a 12 percent return, something like that, yeah.

0:57:370:57:41

I think that's where we wanted to be, really, in terms of the property.

0:57:410:57:45

So I think we're just going to finish them off now

0:57:450:57:47

and get them on the market for rental as soon as possible, really.

0:57:470:57:50

So there you go, you never know what stories you will hear on Homes Under The Hammer.

0:57:530:57:57

So join us next time for tales of subsidence and success.

0:57:570:58:01

-See you then.

-Goodbye.

-Goodbye.

0:58:010:58:03

Martin Roberts and Lucy Alexander visit a double-fronted end-terrace house in Stoke, a flat in Sydenham and a semi-detached house in County Durham. They find out who bought them and what was paid when the properties went under the hammer.


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