Episode 42 Homes Under the Hammer


Episode 42

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Transcript


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-Welcome to the show.

-Buying property can be a drawn-out process.

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But not if you buy at the auction. You could have the keys to your property in 28 days or less.

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So if you like to know where you are, it might be worth buying your home under the hammer.

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Well, buying at auction can be a bit of a gamble, but the key is to do your research first.

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So are our buyers today on a winning streak? Here's what they bought.

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We revisit a property in Hammersmith in London, which we last saw seven years ago

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when it was waiting for work to start on a loft conversion.

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In Kent, this site with planning permission looks perfect for an easy life.

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As building plots go, this is quite an uncomplicated one.

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And this ground-floor flat in Derby could solve all your storage needs and then some!

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You have got an absolute plethora of cupboards.

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All these properties have been sold at auction. We'll find out who bought them and what they paid

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when they went under the hammer.

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Time now for some time travel. We're heading back to 2005,

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the first time we looked at a property in Hammersmith, West London.

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On a day like today, by the Thames, you can understand why people love the idea of living in London.

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But my thoughts were that if you wanted somewhere by the river, you'd have to buy a new flat

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that's been built along the Thames, but apparently not. The thing that's up for auction is just down there.

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# Cos London is calling

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# I live by the river... #

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But before you get really excited about the river

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and the proximity to transport links, remember this is London.

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This isn't a snip. £330,000. Sounds like a lot of money to me.

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Let's take a look inside.

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'330 grand IS a lot of money for an auction property, however well positioned.

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'I think this needs to be in pretty decent condition to get any investor excited.

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'It doesn't look that big, but it does have three bedrooms, so perhaps it's bigger inside.'

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Well, your third of a million quid doesn't even get you somewhere in particularly good order.

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It's a hodge podge of rooms with various ones off corridors and staircases all over the place.

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In terms of the internal decor, well, I've got a couple of really interesting things to show you.

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First of all, how about this? Somebody obviously with a penchant for model boats.

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You could always put the boat out, but for DIY disasters, look.

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Fantastic. Ever seen packing tape used as a filler before?

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We love that. And how about this for a fitted cupboard? Excellent for snooker cues!

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Joking apart, it's a good-size space. You've got a rear sitting room and front one knocked through.

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It's looking good, but one negative is out the back.

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The good news is you've got a reasonable-sized garden, which is always a bonus.

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The bad news is... it's on the flight path.

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But the more or less constant rumble of flights in and out of Heathrow is something

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you probably get used to. And it's almost impossible to avoid around here.

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As for the property itself, there was a decent garden out back,

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but inside the small kitchen needed a total overhaul, as did the layout upstairs.

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There were three bedrooms on the first floor, but the bathroom and loo were accessed through a bedroom,

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which is never ideal. One option was to go up into the loft and create a fourth bedroom.

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The fact that other properties had already done this meant the precedent was set.

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There was plenty to do, but did this promising property fetch a sky-high price at auction?

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Right. Lot 32 now

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is a mid-terraced house near the Thames. It's a good lot.

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Where do you want to start?

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Three? OK, you're here and you've bid. 300,000 on my right, sitting.

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305 anywhere? 305. 310. 310. 315.

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320. 325.

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330.

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335. 340.

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345.

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350. 355?

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351? Try and help.

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No?

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351 over here. 351. 352?

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Right. You'll get it on your first bid. It's going at 351,000. Anyone else?

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352.

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353. 354.

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355. 356?

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It's with you. 355. It's going. Anyone else?

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First time... 356.

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357. 358.

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359. 360.

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361. 362?

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363?

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364?

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364. 365?

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366?

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365. Anyone else?

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365, first time. Second time.

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Third and last time at... 366. Nearly. 367.

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368?

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It's worth it. 368.

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367, first time. Second time. Third and last time. Have you all done?

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Sold. 367. Well done. Got there in the end.

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That successful bid of £367,000 was made by Richard,

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who works for a company organising property exhibitions.

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He bought the mid-terrace as a family home to live in with his wife and 15-month-old daughter.

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-So into your lounge.

-Indeed, yes.

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-Does that sound a bit strange?

-It does now. What have we done?

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But congratulations. Are you a bit concerned about what you've bought?

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We know we've got a big project ahead of us. We did know that,

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but now we're into the realisation of picking up the keys, it's all come to a head, really.

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You obviously had a look at it before. What made you think this was a good one to go for?

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Basically, there's a lot of space. It's three bedrooms, it's got great potential for the loft.

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With the garden outside, it's comparatively big. It's got all the fundamentals we wanted.

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As well as that, there's the park just outside there

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-and the river is about 100 yards away.

-In a lot of ways, you bought the scrappiest house on the street.

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That was the intention. So we'll hopefully turn it into the nicest house on the street.

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'London prices are amazing. Richard's paid £367,000 for the worst house in the street,

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'not the best. So what are his plans to transform it from the runt of the litter

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'into the top dog?'

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With the ground floor, in the room we're in now, we'll put a kitchen in this part.

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-A kitchen in here?

-In here, which is not what's normally done in traditional front rooms.

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However, what we've found is that with the kitchen in here, it frees up

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-the back part of the room to have a dining area.

-That's thinking outside the box.

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Yeah, I think it's... I think it's something we're pretty sure will work,

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especially with my wife having a toddler around. She can be in the kitchen, the baby in this area.

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The traditional kitchens are very small, so you just don't have the room to do that.

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But using this area will give us that room.

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The other thing we intend to do is convert the loft.

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A lot of the other houses have had them converted.

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-Planning permission, touch wood, shouldn't be a problem.

-Creating a four-bedroom house.

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-Indeed, yeah.

-How much will the conversion be?

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-They're coming in at around £30,000-£35,000.

-Really?

-Yeah.

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-Not cheap, then.

-They're not cheap.

-Is that London prices?

-London prices.

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That's probably because they know how much square footage they can add and, hence, its value.

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'London builders aren't daft, are they? £35,000 on a loft conversion.

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'In some areas you could do this entire renovation plus a loft conversion to a high standard

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'and still have 10,000 quid left. But then again, you wouldn't have the same level of value.'

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What about timescales and budgets?

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Total time, I'd say, three months. Three to four, perhaps.

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-By the time we move in.

-And money?

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Money... We're probably going to be looking at the 60-70 mark,

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which will include doing the roof. It's important for us to get more space in the house.

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To do the loft conversion now is quite important. As we're ripping the place to bits,

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we might as well have all the mess and all the problems with the loft done and dusted.

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-So in three months' time, you'll be in.

-Fingers crossed!

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Well, that was in July, 2005.

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When we went back, seven months later,

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Richard and his family had moved in

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and big changes had been made.

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He'd moved the kitchen into the old front room and it was looking great.

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I'd been dubious about the move, but it does look fabulous.

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It was time for me to eat my hat.

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We're very pleased with how the kitchen/dining area works.

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The whole purpose of that was so that we could watch TV

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whilst cooking food.

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Also my daughter can play in one area whilst we're in the other area.

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The former kitchen and the old back sitting room were knocked together and were being used as storage,

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but Richard had a great plan for that space.

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Where the kitchen used to be, that's created quite a nice large room,

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which opens out into the garden. That will be a sort of child-free zone,

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so dining room if needs be or perhaps even a second lounge.

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Up the stairs and Richard had rejigged the dodgy layout of this mid-terrace.

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The bathroom, as you've got it here, used to be at the back of the house.

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You had to walk through a bedroom to get into the bathroom.

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By bringing this forwards, all of the bedrooms can have access to this bathroom.

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The new layout meant three good-sized bedrooms on the first floor, but with scaffolding up

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the plan was to get cracking on the loft conversion.

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They'd achieved a lot in seven months. They'd been lucky to keep their daughter away from the noise

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of the work so far.

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We've renovated properties before and been able to live there,

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but we didn't have a little girl to oversee the project, if you like.

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Fortunately, my wife's parents live abroad,

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so my wife and child have been able to go out there whilst the major dirty, dusty work took place,

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There was no escaping the fact that Richard's original 3-4 month timescale had slipped,

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but he was confident that the loft conversion would come together swiftly and he'd stick to

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his planned £60,000-£70,000 budget.

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It will be great once it's finished, but we know we've got to go through that 2-3 month period of unrest

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before it is what we wanted.

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I think we have taken probably one of the worst houses in the street

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and by the time it's finished, it will be the best in the street.

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Keep watching and you can find out just how good the mid-terrace gets later in the show.

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# So I'd like to know where you got the notion

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# Rock the boat Don't rock the boat, baby Rock the boat... #

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Ahoy, me hearties, and welcome aboard as the good ship Hammer sets sail for Gravesend.

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In the 19th century, Gravesend became one of the first English resort towns.

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Tourists would literally come by boat from London to visit the local gardens and pier

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and enjoy the views of the river.

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These days you can catch a high-speed train to London on less than 30 minutes.

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Or you can pop over to nearby Ebbsfleet International and head to the continent.

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But why bother when there's plenty to see here in Gravesend on a beautiful day like today?

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Well, a 15-minute walk from Gravesend town centre and I'm here to see not a house,

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more of a development opportunity.

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It had a guide price at auction of £50,000-£60,000.

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Basically, it's a building plot, formerly part of somebody's garden.

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The good news is there's already full planning permission in place.

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The garages will be flattened and a detached two-bed house built. I'm going to have a nose around.

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Now shed aficionados might vote for keeping the garages, but this plot has so much more to offer.

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Once these garages have gone, it'll be a reasonably-sized, reasonably flat plot.

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It's actually 7.3 metres wide and 31 metres deep. There's road access to the front

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and being in this lovely residential area, all the main services are quite close at hand.

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As building plots go, this is quite an uncomplicated one.

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With that planning permission, a lot of the legwork has been done for you.

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The new owner would already be several steps closer to kicking back and taking it easy

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in a very pleasant little garden.

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So I've got the plans that have already been passed.

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Let's have a little look and see what we've got here. It's for a chalet-style bungalow.

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Now here we've got the ground floor and there's a living/dining area towards the back, which I love.

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And you can see here some really nice bi-fold doors that lead straight out onto this garden.

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That's really pretty. In the kitchen, I'd be inclined to take down that brick wall

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to make the most of that space. A nice, large bedroom to the front.

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Up the stairs into one big bedroom at the back and you've got a little study.

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So overall I'm sure you could make a few little internal tweaks without having to re-apply for permission.

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I really feel they've made the most of the space with these plans.

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As the plans stand, I think you could build a two-bed chalet bungalow here for around £100,000.

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This would mean that if you bought the land for £60,000, at the top end of the guide price,

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you'd be looking at investing around £160,000 here.

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We asked a local estate agent what she makes of the plot and the proposed plans for it.

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I don't think you could have built anything differently here because of the style of properties around

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and to maximise what you want, what they've drawn is perfect.

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What does she reckon a chalet bungalow would fetch on the resale market?

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We would expect to achieve around £200,000-£210,000.

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And on the rental market?

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A two-bedroom chalet bungalow would achieve

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around £850 per calendar month.

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It's hard to imagine this pretty garden and the garages will become a lovely home,

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but with planning permission in place, it shouldn't take too long.

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So who was tempted to do it themselves and build their own property?

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Let's find out who bid for this one.

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Lot 49 now.

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Land with planning permission for a detached house with two bedrooms. Start me with a £50,000 opener?

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£50,000 bid, can I say? At 50.

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And five, do I say? At 50 on the telephone. 55 on the other telephone.

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Up to 60. And five. 65.

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65. At 65 on Will's phone. No? Ben's out of it.

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65 on Will's phone.

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And 67. 67 I've got. Fill it up to 70.

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£70,000 now if you like. At... Yeah, 68 I'll take.

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68. And nine. At 69, bid in the room. Fill it up to 70?

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It's where I want it to be. 70,000. £70,000.

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And one? 71. And two?

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72. And three? 73. And four?

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74?

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74,000. And five, sir. 75. You know what you're paying for it.

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And six? 76?

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76? At 75,000... 76,000 I've got. 77 may I say?

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77, it's against you. And 8 now?

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At 78,000 can I say from you, Will?

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If not, 77,000 in the room for the first time... 78 in a fresh place.

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79, sir? 79 can I say...? And 80?

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At 80, it's against you. At 80, it's against you.

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£80,000 standing at the back in a fresh place.

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81 now if you like? 81 may I say?

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81 bid I've got. 82 may I say?

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At 81 then for the first time, 81 for the second time, third and final time...

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82 I've got. 83 now, sir? 83 I've got.

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84? 84 now do I say?

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At £83,000 then... 83 and a half I've got. 84.

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At 84. 84 and a half?

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84 and a half?

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At £84,000 bid then for the first time, £84,000 for the second time...

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Third and final time at £84,000, I'm selling, all done...

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Yours, sir. Well done. Very patient.

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'That successful bid of £84,000, £24,000 over the top guide price,

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'was placed by Cliff, a Gravesend local.

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'He bought the plot to build a house for himself and his partner Theresa.

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'But the big question is whether he's going to shake up those plans.'

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# Come on, pretty baby, let's move it and groove it

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# Well, shake, oh baby, shake, oh honey, please don't lose it

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# It's rhythm that gets into your heart and soul...#

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Cliff, lovely to meet you.

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-Good afternoon, Lucy.

-On this fine, sunny day.

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-It feels like we're standing in somebody's garden, but what a pretty little spot this is!

-It is.

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-Are you happy with this plot?

-It's just right.

-Why did you want to bid for this on auction day?

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I only saw it a week before the auction and I saw it advertised in a local agent.

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I picked up the catalogue, drove past and thought, "This is for me."

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-It tickled your fancy?

-Yeah, I know Gravesend very well and I thought, "I've got to have a go at this."

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When you thought, "This is for me," have you ever built anything before?

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-Yeah, we run a building company.

-So you are a builder?

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Yes, we work for a couple of developers, so we're used to it

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and I've also built a couple of properties for myself in the past, so we're used to doing it.

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And I saw the actual drawing. I didn't really like the house, but I knew that could be altered as such.

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Externally, I won't touch it, just the internal layout. I thought, "Go to the auction," which is what I did.

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'He maybe paid well over the guide price for the plot, but with his building experience and contacts,

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'Cliff is confident he can make the plot work for him

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'and that he and his team can fit the build in between other larger projects.'

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So, Cliff, this is for you. Is this a bit of a dream?

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Are you going to be building your dream property?

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I wouldn't say the dream property, but it will have four walls, you don't have to answer to anybody.

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If you want to turn the radio up, you can. You haven't got to put up with other people as such.

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At the moment, I live in a flat in town near the river.

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The flat and the views are fantastic, but unfortunately, there's another 40 residents in the block where I live,

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so I'm getting a bit cheesed off with that.

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You'll get yourself a nice detached house...

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-Detached, yes.

-That you will build yourself.

-Yes.

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-How much will you tweak those plans?

-It's totally different to the planning application internally.

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-So why is that?

-Because it has to suit.

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Unfortunately, it was really laid out for more of an elderly person.

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The bathroom was on the ground floor, there was a small bedroom there.

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Now we've pushed the bathroom upstairs and created a shower room on the ground floor.

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There's still a facility that you could shower on the ground floor and use the loo,

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but it's more of a house style now than a bungalow.

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You've got a lovely lounge that leads out to the garden and a kitchen the other side of the wall.

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We've moved that. The kitchen will be at the front in the bay window.

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You'll walk in the front door by this garage, left into your kitchen, staircase in front of you,

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turn right to a smaller bedroom in the middle, then into your lounge which opens out on to the garden.

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-Lovely. It will be beautiful.

-It will be. The shed goes, but the trees will still be there.

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And a piece of green grass which will be nice to come home to.

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-Take my boots and socks off and sit on the grass.

-When you've been building houses all day!

0:23:360:23:41

And the rest of the boys. It's not just about me.

0:23:410:23:44

-You'll bring them all back here for a cup of tea?

-Yeah.

0:23:440:23:47

I'll need the boys here to get this built because the developer we work for, I can't let him down,

0:23:470:23:53

so it's all a part of the team, we all work together.

0:23:530:23:56

How is it going to work if your actual job starts getting busy? Is this build going to suffer?

0:23:560:24:02

No, it won't because, fortunately for us, we're just finishing three for our main client over in Epsom

0:24:020:24:08

and, hopefully, starting in about eight weeks' time on another pair,

0:24:080:24:12

so this will time right for us to come here, then we go over there.

0:24:120:24:16

You're a builder. You know about "it should time right".

0:24:160:24:20

-It should time right.

-That's what worries me. It might not time right.

0:24:200:24:24

You have to have some confidence. You have to get in and make a start

0:24:240:24:28

and, hopefully, it comes out the right side of the line.

0:24:280:24:31

-So you're feeling confident?

-Very confident.

-What's the budget?

0:24:310:24:35

Hopefully, spend about £90,000.

0:24:350:24:37

-You think you can build this perfect chalet-bungalow for 90 grand?

-Yes.

0:24:370:24:41

The only thing we've got at the moment is the services. Some prices came back on them.

0:24:410:24:46

The electricity connection is at the other side of the road, so it's £3,000 just to bring it to here.

0:24:460:24:52

-Really?

-It's £3,000, yes.

0:24:520:24:54

A few years ago, it wouldn't have been that,

0:24:540:24:57

but politics and electric, gas and water companies, we won't talk about that, but yeah, yeah...

0:24:570:25:04

-Will you be on site every day making things go smoothly?

-Yeah.

0:25:040:25:08

I only live just down the road. I'm working that way, but in the morning, we'll be here first thing,

0:25:080:25:14

off somewhere else, then back here in the afternoon. The boys will get caught in the morning and afternoon!

0:25:140:25:20

-Are you excited?

-Yeah, it's good news.

-Are you already imagining yourself living here?

0:25:200:25:25

-I can see me sitting here with a cup of tea.

-I can see that as well.

0:25:250:25:29

-Cliff, it's been lovely meeting you and I can't wait to see the end result. Congratulations.

-Thank you.

0:25:290:25:35

A lot of people dream of building their own home and Cliff is about to make that dream a reality,

0:25:350:25:41

but his business is building.

0:25:410:25:43

If work picks up, will this personal project keep getting put on hold?

0:25:430:25:48

Will he really be ready to move out of his flat and into his new home in just six months?

0:25:480:25:53

You can find out how he gets on later on in the programme.

0:25:530:25:57

'Coming up, this one-bedroom, ground floor flat in Derby has a very handy added bonus.'

0:25:580:26:04

The flat comes with its own garage.

0:26:040:26:07

'In Gravesend, Kent, Cliff's two-bed house on this development site gets a big thumbs-up.'

0:26:080:26:14

Wow! He's done a fantastic job throughout the property.

0:26:140:26:18

'But first, has Richard finally finished his renovation

0:26:190:26:24

'of this three-bedroom mid-terrace in West London?'

0:26:240:26:28

And so we head back to the London borough of Hammersmith

0:26:310:26:35

and this three-bedroom mid-terrace.

0:26:350:26:38

Richard had bought it as a family home in 2005

0:26:380:26:43

for £367,000.

0:26:430:26:46

When we returned for our second visit seven months later,

0:26:460:26:49

Richard, his wife and their toddler daughter had moved in.

0:26:490:26:53

They had created a great family kitchen and were about to start on the loft conversion.

0:26:530:26:59

Richard had big aspirations for the mid-terrace.

0:26:590:27:02

I think we have taken probably one of the worst houses in the street

0:27:020:27:07

and by the time it's finished, it will be the best house in the street.

0:27:070:27:11

Seven years after our first visit, we were itching to get back

0:27:120:27:17

to see if Richard had finally created the ultimate Hammersmith palace.

0:27:170:27:22

# I've been trying to do it right

0:27:230:27:26

# I've been living a lonely life

0:27:260:27:29

# I've been sleeping here instead

0:27:290:27:32

# I've been sleeping in my bed

0:27:320:27:35

# Sleeping in my bed...

0:27:350:27:38

# I belong with you

0:27:460:27:48

# You belong with me

0:27:480:27:50

# In my sweet home

0:27:500:27:53

# I belong with you, you belong with me

0:27:530:27:56

# In my sweet home... #

0:27:560:27:58

Wow, what a job they've done here!

0:28:040:28:07

This is a perfect family home.

0:28:070:28:11

That kitchen at the front is a triumph.

0:28:110:28:13

The sitting room at the back is an oasis of calm.

0:28:130:28:18

Up on the first floor there are three good-sized bedrooms

0:28:190:28:22

and an attractive family bathroom.

0:28:220:28:25

There's also now a lovely new staircase up to the long-awaited loft conversion.

0:28:270:28:33

We've created a single loo in the room itself

0:28:390:28:42

and also had a sort of open-plan bath in it as well.

0:28:420:28:46

It's quite important for us to get a bath, rather than a shower, as we both prefer baths.

0:28:460:28:52

The layout up here may not be to everyone's liking,

0:28:520:28:56

but Richard and his wife used the room as their master bedroom

0:28:560:29:00

before moving that back down to the first floor.

0:29:000:29:03

In current economic climates, we've taken in a lodger.

0:29:050:29:09

He stays with us for five days a week

0:29:090:29:13

and he's living in the loft space which is self-contained,

0:29:130:29:17

so we don't see much of him.

0:29:170:29:19

As for the occupants of the bedrooms on the first floor,

0:29:190:29:23

well, the house is not the only thing that's been growing since our last visit.

0:29:230:29:29

The oldest daughter is now nine

0:29:290:29:32

and two and a half years after the oldest was born, our second one turned up, so another girl.

0:29:320:29:38

And she's now seven,

0:29:380:29:40

so they've sort of grown with the house.

0:29:400:29:43

The way we've laid it out means we've got a family room at the front of the house which includes the kitchen,

0:29:430:29:50

which enables them to play, watch TV whilst we're in there eating or preparing food or whatever.

0:29:500:29:57

It's a wonderful family space, but it's not the only one that the property enjoys.

0:29:570:30:03

The garden has been transformed into a wonderful safe haven for Richard's girls.

0:30:030:30:10

Particularly with the outside space, we wanted to put our own stamp on that.

0:30:100:30:15

There's quite a nice Wendy house, cottage in the garden

0:30:150:30:19

which the kids love to play in.

0:30:190:30:21

We also were able to put in a watering system into the garden

0:30:210:30:26

just when it's not a hosepipe ban,

0:30:260:30:29

so we're able to do that whilst having a drink out there.

0:30:290:30:32

The kids' rooms themselves are delightful,

0:30:330:30:37

but the best bit of all is they've still got the same teddies they had seven years ago.

0:30:370:30:42

# Me and my teddy bear

0:30:450:30:50

# Have no worries, have no cares

0:30:500:30:54

# Me and my teddy bear

0:30:540:30:58

# Just play and play all day... #

0:30:580:31:03

Oh, bless! But the big question is why has it all taken so long?

0:31:030:31:08

Seven years to do a loft conversion? Surely not!

0:31:080:31:12

Last time you were here, we'd got scaffolding up.

0:31:120:31:16

We were waiting for the builder to start on that,

0:31:160:31:19

so it probably took eight to ten weeks to get the structure done

0:31:190:31:24

and then perhaps another couple of weeks to get the interior done.

0:31:240:31:29

Because we did quite a bit of the touching up ourselves, that probably took another good couple of months,

0:31:290:31:35

but as with any of these projects you're living in, there's not necessarily the time constraints

0:31:350:31:40

because you're already in the house, so touching up was being done even a couple of weeks ago.

0:31:400:31:46

In the seven years it's taken to add those finishing touches,

0:31:460:31:51

work has started on a development of up-market flats nearby.

0:31:510:31:55

That might give a boost to property prices locally,

0:31:550:31:58

but how much has Richard's renovation ended up costing?

0:31:580:32:02

The initial budget, yeah, 60 or 70.

0:32:020:32:05

With the loft, yeah, probably another ten on top of that.

0:32:050:32:09

I'd say we probably came in at 80, 85.

0:32:090:32:12

A renovation cost of £85,000 on top of his purchase price of £367,000

0:32:130:32:19

brings Richard's total outlay here

0:32:190:32:23

to a cool £452,000.

0:32:230:32:26

We asked two local property experts

0:32:260:32:28

to look around the finished mid-terrace and give us their thoughts.

0:32:280:32:33

It's a lovely family home and very nicely decorated.

0:32:330:32:36

A bit different to your standard Victorian terraces in the layout,

0:32:360:32:41

but the finish on it is fabulous and it would make a great family home for somebody.

0:32:410:32:46

Quite a bit has happened in the seven years since we were last here -

0:32:460:32:51

property market crash, double-dip recession, mortgage mayhem.

0:32:510:32:55

What do the experts think the mid-terrace would sell for today?

0:32:550:32:59

I believe this property would achieve a figure in the region of £985,000.

0:32:590:33:05

I would put this property on the market at £1.15 million.

0:33:050:33:09

Did he just say £1.15 million?

0:33:100:33:15

He did, didn't he? Yes.

0:33:150:33:17

£1.15 million!

0:33:170:33:20

Well, obviously very pleased.

0:33:200:33:22

I know that there's been a lot of movement in the area recently

0:33:220:33:27

because of the development that's been taking place at the end of the road,

0:33:270:33:32

so, yeah, pleasantly surprised.

0:33:320:33:34

If Richard were to sell, the estate agents' valuations would give him a profit before tax and expenses

0:33:340:33:41

of between £533,000 and £698,000.

0:33:410:33:47

Not bad, even over seven years.

0:33:470:33:50

What about rentals?

0:33:500:33:52

I'd put a rental value on this of £3,250 per calendar month.

0:33:520:33:57

I think this property would rent at around £3,460 per month.

0:33:570:34:02

Those rental valuations would give Richard a very healthy yield of around 9%.

0:34:020:34:08

So does he feel he's reached his goal? Is this now the best house on the street?

0:34:080:34:14

It's continually moving on this street. There's a lot of people moving in, renovating properties.

0:34:140:34:20

We've got a house we're very happy with. I don't think we'd want to live anywhere else.

0:34:200:34:25

Chellaston, now a suburb to the south of Derby, has a long history

0:34:300:34:34

and is sometimes cited as the birthplace of Robin Hood.

0:34:340:34:39

Maybe it's not.

0:34:390:34:42

But we do know that it's mentioned in the Domesday Book

0:34:420:34:46

and in the 11th century was sold for three shillings.

0:34:460:34:50

Property here costs just a little bit more these days, though it is still a thriving community

0:34:500:34:55

with a variety of housing to suit all pockets.

0:34:550:34:58

So what was on offer at the auction?

0:34:580:35:00

On this fairly modern housing estate close to the centre of Chellaston with all its amenities and things

0:35:000:35:07

was the property itself.

0:35:070:35:09

£55,000-plus was the guide price for a one-bedroom ground floor flat.

0:35:090:35:15

It looks pretty good from the outside. In we go.

0:35:150:35:19

So what have we got?

0:35:200:35:22

A little entrance area here and then a bedroom there.

0:35:230:35:28

Bathroom there. Not a bad size, At least it's got a white suite. No bath, just a shower.

0:35:280:35:33

Not to everyone's taste, but you know, hey-ho!

0:35:330:35:36

Then into this really nice-sized living space.

0:35:360:35:40

In fact, almost too big for the flat if you like,

0:35:400:35:43

which begs the question - could you consider converting this into maybe a two-bedroom?

0:35:430:35:49

I don't know. I like this feeling of open-plan. It's certainly not claustrophobic at all.

0:35:490:35:54

Then through into the kitchen and, joy of joys, look at this, absolutely lovely.

0:35:540:36:00

It's a bit dated, but you could live with these units.

0:36:000:36:03

It may not be to everyone's taste, but if you're looking at renting this place out,

0:36:030:36:08

possibly just tidy it up a little bit and off you go.

0:36:080:36:12

So, all in all, I'm getting a really good feel about this place.

0:36:120:36:16

# That tonight's gonna be a good, good night I got a feeling... #

0:36:160:36:22

The building is unlikely to outlive its 999-year lease, but it appears to have been well maintained.

0:36:220:36:30

With minimum expense and effort, it could equally make someone a fine home

0:36:300:36:36

or a profit on rental or re-sale.

0:36:360:36:38

Ideally, you could put a bath into the bathroom,

0:36:380:36:42

but having that shower does make it feel more spacious.

0:36:420:36:45

But oddly enough, even though it's just a one-bedroom flat,

0:36:450:36:49

a shortage of space isn't exactly an issue here.

0:36:490:36:53

One thing that is often lacking in flats is storage space, but not in this one.

0:36:530:36:58

You have got an absolute plethora of cupboards -

0:36:580:37:02

one here, another one there...

0:37:020:37:04

..one in the lounge

0:37:060:37:08

and finally, one in the bedroom.

0:37:080:37:11

Of course, you've also got the ones in the kitchen. Talk about cupboard love!

0:37:110:37:17

# I love you cos you're just a cupboard lo-o-ove... #

0:37:170:37:22

It's just as well there's plenty of space inside

0:37:230:37:27

as the flat doesn't have a garden.

0:37:270:37:30

But the flat is set in this neatly landscaped and tidy area,

0:37:300:37:34

though you might want to look into who's responsible for that

0:37:340:37:38

and what your share of those costs would be.

0:37:380:37:41

Another issue is parking which is often tricky with flats.

0:37:410:37:45

But in this case, what we've got is the fact the flat comes with its own garage.

0:37:460:37:52

The only trouble is, I don't know which one it is.

0:37:520:37:56

It could be one of these or one of those.

0:37:560:38:00

Once you find your garage, I reckon you'd be getting an attractive deal with this little lot.

0:38:000:38:06

For a guide price of £55,000-plus, it's a good, compact and attractive flat

0:38:060:38:12

which doesn't really need much done to it.

0:38:120:38:15

Time to chat to a local property expert

0:38:150:38:17

to hear his thoughts on the place and what it has to offer.

0:38:170:38:21

I would say the pros of this flat, it's a quiet, cul-de-sac location,

0:38:210:38:26

it has neutral decor, ideal for a first-time buyer, investment,

0:38:260:38:31

easy to manage living accommodation. A good property.

0:38:310:38:35

I agree. It would make a great investment, especially if you wanted to rent it out

0:38:350:38:40

because it's pretty much ready to go,

0:38:400:38:43

but what changes would be advisable if you hoped to sell the place on?

0:38:430:38:47

I would perhaps look at maybe upgrading the kitchen,

0:38:470:38:51

just a touch of paint and maybe some new carpets, but overall, it's fine.

0:38:510:38:55

What could you expect if you made those little improvements?

0:38:550:38:59

If the property was refurbished, a general upgrade, I would say in the region of £68,000 to £70,000.

0:38:590:39:06

What if you wanted to let it?

0:39:060:39:08

I would expect to achieve in the region of £325 to £350 per calendar month.

0:39:090:39:16

Not many negatives to say about this one. It would make a great home or a good investment purchase.

0:39:160:39:22

You might want to play around with the internals, certainly modernise,

0:39:220:39:26

but apart from that, yeah, a great one to go for. Let's see who agreed when it went under the hammer.

0:39:260:39:31

Lot number seven.

0:39:350:39:37

It's a very well located, one-bedroomed, ground floor flat.

0:39:370:39:42

I'll start the bidding at 58,000 on a proxy bid.

0:39:420:39:45

At 58,000, the bid is with me. 59 is bid. 60,000.

0:39:450:39:50

61. 62.

0:39:500:39:52

63? 63.

0:39:520:39:54

64. 65? 65.

0:39:540:39:58

250. 65,250. I've got to go there because that's my limit. Now I've told you.

0:39:580:40:04

65 and a half. At 65 and a half. 66 elsewhere?

0:40:040:40:09

66 at the back. 66-5? 66-5.

0:40:090:40:13

67? 67.

0:40:130:40:16

67,000. It's worth one more.

0:40:160:40:19

67,000 at the back of the room. 500 somewhere else?

0:40:190:40:23

At 67... 500. 67-5.

0:40:230:40:26

68? £67,500, we're selling...

0:40:260:40:30

For the first time at 67 and a half... 68.

0:40:300:40:33

At 68. 68-5?

0:40:330:40:37

£68,000, it goes once. Twice.

0:40:370:40:41

Third time... Sold right at the back at 68,000. Thank you.

0:40:410:40:45

'That successful bidder was Marcus, a full-time professional footballer.

0:40:450:40:50

'As Marcus was busy training, his dad Graham, a builder, met me at the flat.

0:40:500:40:57

'Graham's been on the show before when he renovated this semi-detached house in Derby.

0:40:570:41:02

'Graham and Marcus run a property development business together.

0:41:040:41:08

'Marcus buys the properties and Graham does the renovations.'

0:41:080:41:12

-Graham, good to see you again.

-And you.

0:41:120:41:15

So how has the last project gone?

0:41:150:41:18

Very well. It was all finished off and it sold about three weeks ago. Just waiting to complete now.

0:41:180:41:23

-So that went well?

-It did go well. With the profit we made on the last two houses,

0:41:230:41:29

90% of this one was bought with the profit margin of two houses before.

0:41:290:41:33

Wow!

0:41:330:41:35

We thought do that and do this as a let only for the time being.

0:41:350:41:39

We did our figures and probably within five years we'll have half our money back

0:41:390:41:44

and then probably move it on from there.

0:41:440:41:47

-Why this particular house?

-We just thought... We bought it blind. We never saw it before.

0:41:470:41:52

So we took a risk on that, but as it turns out, it was a good risk.

0:41:520:41:57

The area is very good. They seem to let very quickly.

0:41:570:42:00

You get a good standard of tenant in this area,

0:42:000:42:04

-so we thought, "Why not? Just see how it goes and go from there."

-Right.

0:42:040:42:09

'The aim is to keep the flat and rent it out

0:42:090:42:12

'with Graham and his son going for a basic refurbishment and tidy up.

0:42:120:42:16

'But it also appears that they've seen the potential of using the space here

0:42:160:42:21

'and are planning to make it into a two-bedroom apartment.'

0:42:210:42:24

Basically, take this stud wall out here, probably moving it half a metre into the kitchen,

0:42:240:42:30

which is still a fairly good kitchen.

0:42:300:42:32

It allows us to get a good-sized bedroom the other side of the wall,

0:42:320:42:36

-so to make it into a two-bed instead of a one-bed.

-Right.

0:42:360:42:40

-That comes down to whether or not that's worthwhile financially?

-Yeah.

0:42:400:42:44

If it's not going to be financially worth it, we'll just leave it as it stands.

0:42:440:42:49

-Right.

-And maybe a new kitchen, but we don't know yet.

0:42:490:42:53

-Then rent it out. Presumably, time is of the essence if you're looking to rent it out?

-Yeah.

0:42:530:42:58

Straight in, straight out kind of thing.

0:42:580:43:01

-What sort of timescale?

-If we're going to do it very basic, within a week and a half to two weeks.

0:43:010:43:07

Wow! That quick?

0:43:070:43:09

But if we were going to do the bedroom, probably three weeks, hopefully.

0:43:090:43:14

What sort of budget, depending on what you decide to do?

0:43:140:43:18

On this, very minimal. If we're going to let it, you don't really want to go overboard on the spend

0:43:180:43:24

because you think you could have a good tenant and you don't.

0:43:240:43:28

Something that's nice they can ruin very quick, so probably minimal cost.

0:43:280:43:33

-Probably 2,000 if we don't do the kitchen. If we do the kitchen, it will probably be about four.

-Right.

0:43:330:43:39

'Those figures are perfectly doable,

0:43:390:43:41

'especially as, with Graham's building experience, he'll do most of the renovation himself.

0:43:410:43:47

'That's apart from when qualified electricians are needed.

0:43:470:43:51

'The team have already got several properties under their belt and seem to have a good thing going.

0:43:510:43:57

'Marcus provides the finances while Dad does the hard graft.'

0:43:570:44:00

-Does he get involved at all in the renovations?

-Yes and no.

0:44:000:44:05

I think he'd like to do more than he does, but his job is to more finance it and stuff like that

0:44:050:44:11

and find the properties and my job is to do the dirty bit.

0:44:110:44:14

-But it works for you?

-It works, yeah.

-And then what next?

0:44:140:44:18

-Back to the auctions?

-Back to the auctions to buy another property

0:44:180:44:22

to renovate and sell on again, get some more money back in.

0:44:220:44:26

-And keep the cycle going?

-Yeah.

-Congratulations. Good luck. Maybe we'll see you in a few more months.

0:44:260:44:32

Hopefully.

0:44:320:44:35

Well, the professional builder and professional footballer, father and son combination seems to work well

0:44:350:44:42

and their strategy is certainly one that in the long term will pay off.

0:44:420:44:46

How will they get on with this flat? Bit of work to do, a few decisions, one bedroom, two bedroom.

0:44:460:44:52

Find out what happens later in the show.

0:44:520:44:54

Martin, the weeks have now turned into months and we're dying to see the properties.

0:44:570:45:02

-Will things have turned out as we hoped or not?

-Let's find out.

0:45:020:45:06

Back now to Gravesend, Kent, and this site with planning permission and a splendid selection of sheds.

0:45:080:45:14

It was bought in an auction for £84,000 by Cliff

0:45:160:45:19

who was going to build on it and then move in.

0:45:190:45:23

The plot came with planning permission and detailed drawings for a two-bed house,

0:45:240:45:29

but Cliff's intention was to make changes to the internal layout.

0:45:290:45:33

The kitchen will be at the front of the property in the bay window.

0:45:330:45:37

You'll walk in the front door by this garage, turn left into your kitchen,

0:45:370:45:42

staircase in front of you, then turn right into a smaller bedroom in the middle,

0:45:420:45:47

then into your lounge which opens out on to the garden.

0:45:470:45:50

Cliff was planning to spend 90,000 and six months on the build, fitting it around other projects.

0:45:510:45:58

12 months after our first visit, we're back to see how he's got on.

0:45:580:46:03

# And you're making...

0:46:030:46:06

# Something out of nothing

0:46:080:46:10

# Maybe

0:46:120:46:14

# I'm in love

0:46:140:46:17

# Yeah, you're making

0:46:180:46:21

# Something out of nothing

0:46:230:46:27

# Maybe I've...

0:46:270:46:31

# I've fallen in love... #

0:46:310:46:33

It may have taken Cliff and his team twice as long as planned, but it's definitely been worth the wait.

0:46:330:46:40

What a transformation from 12 months ago!

0:46:400:46:44

We've been working here since then. Not constantly because we're working on other sites.

0:46:440:46:49

But we're nearly finished, some carpets to go down, the drive to be tarmacked, and that's about it,

0:46:490:46:55

so looking forward to moving in soon.

0:46:550:46:58

This will make a lovely home for Cliff and his partner Theresa.

0:46:580:47:02

The changes to the layout downstairs work really well.

0:47:020:47:05

The picture window in the sitting room is fantastic.

0:47:050:47:08

The study-cum-bedroom and downstairs shower room work really well.

0:47:080:47:13

And as for the kitchen, well, what's not to like?

0:47:130:47:17

Yes, as you can see, we've gone for a gloss white finish

0:47:180:47:21

and melamine worktops.

0:47:210:47:24

Appliances obviously on the bank that we've got here on the left -

0:47:240:47:28

two cookers, a fridge-freezer tucked in there.

0:47:280:47:31

We introduced a bulkhead all around the kitchen on three sides,

0:47:310:47:35

so we don't have that ugly gap above the tops of the wall units which is a dust trap as well.

0:47:350:47:40

We've got a washing machine and a dishwasher here and the five-ring gas hob and the extract fan there

0:47:400:47:46

which is externally ducted as well.

0:47:460:47:48

It's not a recirculating one, so we won't get nasty smells hanging around the kitchen.

0:47:480:47:53

We'll have a table and chairs beneath the bay window. It's lovely when the sun's out. It beams in the window.

0:47:530:47:59

The high-end finish extends upstairs

0:47:590:48:02

where there's a really lovely bathroom and two good-sized bedrooms with pretty groovy wallpaper.

0:48:020:48:09

# Daydream

0:48:120:48:14

# I fell asleep amid the flowers

0:48:140:48:17

# For a couple of hours

0:48:170:48:20

# On a beautiful day... #

0:48:200:48:24

Cliff has finished the place off beautifully,

0:48:260:48:29

so I, for one, can forgive him for taking a bit longer than originally planned.

0:48:290:48:34

Well, the timescale was going to be about six months to carry out the works.

0:48:340:48:40

We're now in a 12-month period from start to finish.

0:48:400:48:43

In some ways, that's good because it gives you a chance to think about things more, get the materials right

0:48:430:48:49

and the paint and the wallpaper,

0:48:490:48:51

whereas you would have been pushed to make the decision more in a six-month period.

0:48:510:48:56

It's taken us 12 months, but it's worked out quite well.

0:48:560:49:00

It's worked out very well, Cliff, but how have things gone on the budget front?

0:49:000:49:06

Initially, I was thinking about £90,000.

0:49:060:49:08

The service companies, once we bought the property, we went out for quotes and they were quite expensive,

0:49:080:49:15

more than I actually budgeted for,

0:49:150:49:17

so with regards to the high spec of the materials that we've used here and the fitments,

0:49:170:49:22

we've ended up spending about £120,000.

0:49:220:49:25

A £120,000 build cost on top of his purchase price of £84,000

0:49:260:49:32

brings Cliff's total outlay here to £204,000.

0:49:320:49:37

We asked two local property experts for their thoughts.

0:49:370:49:41

First up, the estate agent who saw the plot first time around.

0:49:410:49:45

My first thought about this property is "wow"!

0:49:450:49:48

He's done a fantastic job throughout the property.

0:49:480:49:51

From the outside, it looks very impressive,

0:49:510:49:53

but when you come inside, it gets better.

0:49:530:49:56

I don't think there's anything to fault on the design of the interior.

0:49:560:50:00

The layout, the size, everything has been thought through thoroughly.

0:50:000:50:04

This kitchen is just superb.

0:50:040:50:06

Every woman's dream. The storage space, two ovens...

0:50:060:50:11

Marvellous.

0:50:110:50:13

A ringing endorsement there from the experts.

0:50:130:50:16

Cliff has built this to live in with his partner,

0:50:180:50:21

but if he wanted to, what might it let for?

0:50:210:50:24

If we were to put this property on the market for rental,

0:50:240:50:27

I would expect to achieve £950 to £1,000 per calendar month.

0:50:270:50:31

I think it would achieve at least £1,200 per calendar month.

0:50:310:50:36

Those rental valuations would give Cliff a yield of between around 5.5 and 7%,

0:50:360:50:43

but bearing in mind his total investment of 204,000,

0:50:430:50:47

what do they think the property might fetch if sold on?

0:50:470:50:51

I would expect it to achieve anywhere between £250,000 and £275,000.

0:50:510:50:59

I'd expect the property to achieve at least £285,000 to £290,000.

0:50:590:51:06

It sounds very good, doesn't it? Yeah, it's good, very good.

0:51:060:51:10

At worst, I thought 240, 245.

0:51:100:51:13

Those re-sale valuations would give Cliff a profit, before tax and expenses,

0:51:140:51:20

of between £46,000 and £86,000,

0:51:200:51:23

but he's here for the long haul and very happy he should be too.

0:51:230:51:28

# Congratulations

0:51:280:51:31

# And jubilations

0:51:310:51:34

# I want the world to know I'm happy as can be-e-e... #

0:51:340:51:40

Earlier, we were in Chellaston in Derby where we saw a one-bedroom flat.

0:51:470:51:52

It was not only in ship-shape condition, but came with its own garage.

0:51:520:51:57

Professional footballer Marcus and his father Graham bought it at auction for £68,000.

0:51:570:52:04

They run a small property developing business. We'd met Graham before

0:52:040:52:08

when the duo renovated this semi-detached house in Derby.

0:52:080:52:12

With the profit from the sale of that, they'd bought this flat.

0:52:120:52:16

This time, it was not to renovate and sell on, but to let.

0:52:160:52:19

They had taken a gamble as they hadn't viewed it before the auction, but luck was on their side.

0:52:190:52:26

As the flat was in good condition, it just needed a basic refurbishment,

0:52:260:52:30

although Graham had plans to create another bedroom.

0:52:300:52:34

Basically, take this stud wall out here, probably moving it half a metre into the kitchen,

0:52:340:52:40

still making a fairly good kitchen.

0:52:400:52:42

It allows us to get a good-sized bedroom the other side of the wall,

0:52:420:52:47

so to make it into a two-bed, instead of a one-bed.

0:52:470:52:50

That comes down to whether or not it's financially worthwhile?

0:52:500:52:54

If it's not going to be financially worth it, there's no point. We'll just leave it as it stands.

0:52:540:53:00

I personally preferred keeping the space as it was,

0:53:000:53:04

but they felt the extra room could be a rental generator.

0:53:040:53:07

As it was, Graham anticipated a basic refurbishment taking two weeks on a budget of £2,000,

0:53:070:53:13

or with a new bedroom added, taking three weeks and costing £4,000.

0:53:130:53:19

We returned a month later to see if it was a one-bed or two.

0:53:200:53:25

It looks like Graham has opted for that basic refurbishment.

0:53:250:53:29

There's a fresh lick of paint in the hall,

0:53:290:53:32

the same in the bathroom...

0:53:320:53:35

..and again in the bedroom.

0:53:360:53:38

The tiny kitchen now has new appliances.

0:53:400:53:43

That just leaves the spacious living room

0:53:440:53:47

and, well, it's still a living room.

0:53:470:53:49

Graham explains why leaving it like this was really a no-brainer.

0:53:500:53:55

As you can see, this room is near enough the same as it was the day we took over the property.

0:53:550:54:01

We did think about removing this wall to turn it into a two-bed property,

0:54:010:54:05

but because the tenants wanted it as it stood, we decided to leave it to make minimal work

0:54:050:54:11

and just a quick coat of paint - job done.

0:54:110:54:14

I'm glad the living room has retained its space,

0:54:140:54:17

but also that Graham and Marcus have already got a tenant lined up.

0:54:170:54:21

On the day of the filming the first time, a tenant wanted the property there and then,

0:54:210:54:26

so it was not worth putting the money into it

0:54:260:54:29

because we were going to get the rental we wanted for no work.

0:54:290:54:33

Apart from the appliances, a new light fitting has been installed in the kitchen

0:54:330:54:38

at the request of the new tenant and that's it.

0:54:380:54:41

A no-nonsense, no-frills, pain-free, cosmetic refurbishment.

0:54:410:54:45

For a first rental project for Graham, it couldn't have been easier.

0:54:450:54:50

We don't normally touch rentals.

0:54:500:54:52

We normally buy properties in bad condition to renovate and sell on at a healthy profit.

0:54:520:54:57

We bought this one solely with the profit we made on the last two.

0:54:570:55:01

This is a classic case of "if it ain't broke, don't fix it" which suited Graham just fine.

0:55:010:55:06

So how much did he spend here? Unless I'm very much mistaken,

0:55:060:55:10

I can't imagine this minimal makeover put too much strain on that £2,000 budget.

0:55:100:55:15

With all the appliances and the new kitchen light, about £850.

0:55:150:55:19

With their purchase price of 68,000, that would bring the outlay on this flat to just under 69,000,

0:55:190:55:27

so no pressure on the budget then or on Graham's timescale.

0:55:270:55:31

The schedule went very quick on this as I thought it would do anyway, regardless if we did the wall or not.

0:55:310:55:37

I did all the work as I do on all the properties

0:55:370:55:40

and this one to decorate through took four days from start to finish.

0:55:400:55:44

I wish everything could be that easy.

0:55:440:55:47

But have they done enough to get the best

0:55:470:55:50

out of their £69,000 investment?

0:55:500:55:53

Time to hear the thoughts of two local property experts.

0:55:530:55:57

First, the estate agent who viewed the flat before.

0:55:570:56:00

I think he's made a good improvement

0:56:010:56:03

on the cosmetic side

0:56:030:56:05

because from my previous visit, there wasn't much that needed doing.

0:56:050:56:10

As a rental proposition, this is an ideal property. It's the right size and area.

0:56:100:56:15

It's finished in the right way.

0:56:150:56:17

For a rental return, the owner has done exactly what he needs to do.

0:56:170:56:21

Any more wouldn't be worthwhile financially.

0:56:210:56:24

The estate agents reckon the changes are just right for the property,

0:56:240:56:28

so with the tenant moving in soon, have the team got the right rental returns here?

0:56:280:56:33

If I was to place this property on the open rental market,

0:56:330:56:37

I would suggest a figure of £350 per calendar month.

0:56:370:56:41

This ought to let nicely at £395 per month.

0:56:410:56:44

We are letting it for 420 a month,

0:56:440:56:47

so it's...good news.

0:56:470:56:50

With that rental income, they will be getting an annual yield of just over 7%.

0:56:500:56:56

That's pretty good going, but should they decide to sell,

0:56:560:57:00

how much profit could they make from their £69,000 investment?

0:57:000:57:04

If I was to place this property on the open market,

0:57:040:57:07

I would suggest an asking price of £69,950, offers around.

0:57:070:57:12

With a view to sale, we ought to be asking £70,000.

0:57:120:57:16

That's nearly bang on what we paid for it. I think it was 69.

0:57:160:57:20

The climate's not that good at the moment, so when it picks up, it will go beyond that, hopefully.

0:57:200:57:25

But we're not looking to sell it for ten years.

0:57:250:57:28

I reckon they made the right decision about using this place as a long-term rental,

0:57:280:57:33

but they did buy the property without seeing it before the auction

0:57:330:57:38

and are very aware it could have all gone wrong.

0:57:380:57:41

It's a gamble at the end of the day.

0:57:410:57:43

You either take the gamble and it pays off

0:57:430:57:46

or you could be stuck with a property for months and not have a tenant,

0:57:460:57:51

but we was lucky and so I hope the luck stays with us.

0:57:510:57:56

It's worked out this time, but I absolutely do not recommend buying blind.

0:57:560:58:01

So what's in store now for this father and son team?

0:58:010:58:05

We'll be looking for another house this month at the auctions to sell on,

0:58:050:58:09

so happy days, hopefully, again.

0:58:090:58:13

That's it for today's show. Join us next time.

0:58:150:58:18

-We hope we've inspired you on Homes Under The Hammer.

-Bye for now.

-Goodbye.

0:58:180:58:22

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