0:00:02 > 0:00:07- Welcome to the show. - They say every house tells a story. We've found that to be true!
0:00:07 > 0:00:14There are always tales to tell and stories to uncover when you buy your home under the hammer.
0:00:39 > 0:00:44Properties sold at auction are sold on a "buyer beware" basis.
0:00:44 > 0:00:48It's up to YOU to check out the property thoroughly before you bid.
0:00:48 > 0:00:55Or you could be in for some nasty surprises. Let's see if today's bidders were lucky.
0:00:56 > 0:01:02'I've seen it all on Homes Under The Hammer, but this property in London is rather special.'
0:01:02 > 0:01:05It's already setting itself apart.
0:01:06 > 0:01:10'In Derby I give a masterclass in how to enter a room in style.'
0:01:12 > 0:01:15OK, elegant entry number one.
0:01:16 > 0:01:21'And the decor in this flat in Dover is dated, but...'
0:01:21 > 0:01:23All is forgiven. Wow!
0:01:23 > 0:01:26Look at this room!
0:01:27 > 0:01:33All these properties were sold at auction and we'll find out who bought them and what they paid
0:01:33 > 0:01:35when they went under the hammer.
0:01:38 > 0:01:42'I'm in southwest London in Battersea.
0:01:42 > 0:01:48'The area has undergone significant regeneration in recent years and now has more than its share
0:01:48 > 0:01:56'of smart bars and bistros. It's a pretty cool place to live and more affordable than Chelsea or Fulham,
0:01:56 > 0:02:02'so if you want cachet for less cash, this could be the place for you.'
0:02:02 > 0:02:06So a good area and the property sounds good, too.
0:02:06 > 0:02:12In fact, the auction catalogue says it would give a potential purchaser an ideal opportunity
0:02:12 > 0:02:19to carry out works to their own specification. Anyway, it's a two-bedroom flat over two floors
0:02:19 > 0:02:23in this lovely Victorian building. Let's take a look inside.
0:02:23 > 0:02:27This leasehold flat is split-level on the first and second floor.
0:02:27 > 0:02:33The guide price was £340,000 plus. That's a pretty penny for a two-bedroom flat.
0:02:33 > 0:02:39So through your own door up the first flight of stairs to this little level
0:02:39 > 0:02:46where you've got your kitchen. It needs a bit of work, but it's a good-size space. Separate loo there.
0:02:46 > 0:02:49Bit of a crack there. That needs investigating.
0:02:49 > 0:02:55Up another set of stairs. I love all these different levels. It gives it a nice feel.
0:02:55 > 0:02:59That continues in here. Even in this stairwell, lots and lots of space.
0:02:59 > 0:03:04Light thrown down, natural light, from that skylight up there.
0:03:04 > 0:03:11First of your two bedrooms on that side and then through into an absolute gem.
0:03:11 > 0:03:18This is your front living room area, this big bay window again casting lots of light into here.
0:03:18 > 0:03:22Look at the high ceilings. I'd like to see a fireplace there.
0:03:22 > 0:03:27Apart from that, this flat is already setting itself apart.
0:03:27 > 0:03:32'There are two bedrooms in this flat - one on the first floor next to the living room
0:03:32 > 0:03:37'and the second is on the top. Space like this in London is at a premium.
0:03:37 > 0:03:42'Although the dingy decor doesn't do the flat any justice,
0:03:42 > 0:03:49'if you gave it a spruce up and let the light flood in, that would brighten it no end.
0:03:49 > 0:03:52'But that's for the future.'
0:03:52 > 0:03:56Just check out the bedroom here. Something's niggling me a bit.
0:03:56 > 0:04:02Sure enough, in the corner here we are seeing a few signs of plaster coming off the walls
0:04:02 > 0:04:04and a crack there.
0:04:04 > 0:04:09'Are the cracks a cause for concern? I'm not sure. What I am sure about
0:04:09 > 0:04:16'is that I would get a structural survey done on this property before I bid on it at auction.'
0:04:16 > 0:04:20I really do like all the stairs and different levels in this property
0:04:20 > 0:04:28and there might actually be scope to even do more. Bathroom there, no loo. That's easily rectified.
0:04:28 > 0:04:33And then through into this room, which is the second bedroom.
0:04:33 > 0:04:38There is loft space above here and above other parts of the property.
0:04:38 > 0:04:42Maybe you could think about doing something really clever,
0:04:42 > 0:04:47maybe putting in even more floors perhaps, Dormers here and there.
0:04:47 > 0:04:51While I'm up here, half-decent room as it is, although...
0:04:51 > 0:04:56carrying on the crack theme, so to speak, that's not good.
0:04:56 > 0:05:01A few more over here as well. Is it a big issue? They're not huge.
0:05:01 > 0:05:08My guess is it's some kind of historical settlement. In fact, looking out of the window here,
0:05:08 > 0:05:12super-sleuth Roberts might have found a few reasons why that is.
0:05:12 > 0:05:19Just across there, a relatively recent - compared to the age of this house - development.
0:05:19 > 0:05:23This whole part of London was quite heavily bombed in the war,
0:05:23 > 0:05:29so it may well be that that part of around here was subject to bomb damage
0:05:29 > 0:05:34and the vibrations or whatever have caused a few problems in here.
0:05:34 > 0:05:39It's worth getting it checked out. On the face of it, not too much of a problem, though.
0:05:39 > 0:05:45'But cracks aside, this flat has a great deal of potential in a variety of configurations.
0:05:45 > 0:05:51'Option one, renovate it in the present layout. Option two, create a downstairs bathroom
0:05:51 > 0:05:55'and add a loo to the upstairs bathroom,
0:05:55 > 0:06:01'or option three, expand into the loft to add that all-important value-added square footage.
0:06:01 > 0:06:07'With all those possibilities to consider, it's time to hear from a local estate agent
0:06:07 > 0:06:11'about this two-bed flat guided at £340,000 plus.'
0:06:11 > 0:06:14It's very tired.
0:06:14 > 0:06:18Needs a lot of decoration. There are a few cracks to look at,
0:06:18 > 0:06:23but great property, great location and really good space.
0:06:23 > 0:06:29'Bearing in mind the great potential the flat has, what are the possible returns here?'
0:06:29 > 0:06:35If this property was renovated to a good standard, I'd value this property at £490,000-£500,000.
0:06:35 > 0:06:39If the purchasers decided to turn to two bedrooms, two bathrooms,
0:06:39 > 0:06:43they might achieve about the £525,000 mark.
0:06:43 > 0:06:49If the purchasers decided to do the full extension, go into the loft, I think they could achieve
0:06:49 > 0:06:53anything from £565,000-£585,000.
0:06:53 > 0:06:58'If you could afford it, a loft extension would provide a good rental return.
0:06:58 > 0:07:05'The estate agents believe £2,000-£2,200 per calendar month is achievable.
0:07:05 > 0:07:11'With a second bathroom added, he believes the property could achieve £1,700 per calendar month.
0:07:13 > 0:07:16'But what about keeping it in its current layout?'
0:07:16 > 0:07:19It would achieve £1,500 a month.
0:07:19 > 0:07:26It's a flat by name, but I've seen smaller houses. I love this place and its potential for expansion.
0:07:26 > 0:07:32A few issues with those cracks, but a great one to go for. Let's see who agreed.
0:07:32 > 0:07:37Start at 300. It's not going to go below three. 300 down here.
0:07:37 > 0:07:38305?
0:07:38 > 0:07:41305. 310.
0:07:41 > 0:07:43315. 320.
0:07:43 > 0:07:50There were two parties keenly contesting this lot. We rejoin the auction when it reached £422,000.
0:07:51 > 0:07:54422. 423?
0:07:56 > 0:07:58422, back to you.
0:07:58 > 0:08:01423 elsewhere? If not, 422 on my right.
0:08:01 > 0:08:04Anyone else? 422.
0:08:04 > 0:08:06First time, second time.
0:08:06 > 0:08:12Third and last time. All done? Sold. 422. Well done.
0:08:12 > 0:08:15Those successful bidders were Liz and her son William.
0:08:15 > 0:08:21William, a software engineer, was away on business, so it was Liz and her daughter Rose
0:08:21 > 0:08:28who met me back at their new £422,000 purchase to talk about their plans.
0:08:28 > 0:08:32Rose is a freelance journalist, while Liz is a homemaker.
0:08:32 > 0:08:36Could this flat be made into a home?
0:08:36 > 0:08:41- Rose, Liz, lovely to meet you both. Congratulations.- Thank you.
0:08:41 > 0:08:46- Tell me why you wanted to buy this. - Me and my brother are looking for somewhere to live.
0:08:46 > 0:08:54We know the area very well and live round the corner. It's to make our own little home.
0:08:54 > 0:08:59- You're in rented accommodation? - We're just renting in a flat around the corner
0:08:59 > 0:09:04and wanted to do something with our money, so buying was the best option.
0:09:04 > 0:09:06And share the costs?
0:09:06 > 0:09:13Yeah, exactly. My brother's buying the majority of it. I needed him to get anything at all!
0:09:13 > 0:09:20It's tough, certainly, around the London area for starting out and buying your first one.
0:09:20 > 0:09:26- Yeah. All my friends are quite surprised that I can even get on the property ladder.- Wow.
0:09:26 > 0:09:32It needs to be two people with independent incomes to get anywhere. Luckily, I have that with my brother.
0:09:32 > 0:09:37'They're also lucky to be getting support from Mum and their dad, Geoff, who provided funds
0:09:37 > 0:09:44'to buy the flat in the first place. Rose and William are taking a mortgage out to repay their parents,
0:09:44 > 0:09:49'but another source of financial help proved invaluable.'
0:09:49 > 0:09:55My deposit came mainly from our granddad, when he died. Our inheritance money has gone into here.
0:09:55 > 0:10:02- I'm sure he'd be happy about that. - Yeah, I think he would. - So what are you going to do with it?
0:10:02 > 0:10:06Just do it up in a homer. Nothing too major.
0:10:06 > 0:10:12We'll make the bathroom bigger and turn the upstairs bathroom next to the master into an en suite.
0:10:12 > 0:10:18Then, other than that, just obviously paint all the walls, put in the furniture,
0:10:18 > 0:10:24- things like that.- Right. - But we have to have it all replastered and rewired.- Yeah!
0:10:24 > 0:10:29- There's a lot of initial work. - And renovate all the floorboards.
0:10:29 > 0:10:35- Yeah. - There's quite a lot of work to do before you get the paintbrush out.
0:10:35 > 0:10:40I'll ask the question again. Mum, what are you planning to do to the place?
0:10:41 > 0:10:48'It's just as well that mum Liz is aware that the flat does need a full renovation
0:10:48 > 0:10:53'from replastering to rewiring. It was sold by Wandsworth Council,
0:10:53 > 0:10:59'subject to the decent home standard, which stipulates that it has to be habitable within 6 months.
0:10:59 > 0:11:07'The current thinking is that dad Geoff will be doing the renovation, with tradesmen when necessary.'
0:11:07 > 0:11:11Do we have to talk about the cracks? Big cracks...and things?
0:11:11 > 0:11:18- Big cracks. There is a big crack I noticed, but...- Where's that, Mum? Where's that crack?
0:11:18 > 0:11:22- Just down there, isn't it? - I don't know anything about it!
0:11:22 > 0:11:28Well, there was a survey done and that would have highlighted the major issues.
0:11:28 > 0:11:34All they've said is it needs extensive plastering. I presume it's a superficial crack.
0:11:34 > 0:11:41- Or historical.- Yeah. And there's two houses either side. I can't see how the house can fall down.- Right.
0:11:42 > 0:11:45So what's the budget for the work?
0:11:45 > 0:11:49- The budget is like...30 grand? - We're thinking £30,000.- 30?
0:11:49 > 0:11:54- Wow. What are you going to do? - That's exactly what I thought!
0:11:54 > 0:11:57When that was what they came up with.
0:11:57 > 0:12:03- I don't know what we'll do with that. That's what I said to you. - You're hysterical.
0:12:04 > 0:12:10- Yeah.- Two bathrooms to be done, there's a whole new fitted kitchen. - All the rewiring.
0:12:10 > 0:12:15- The kitchen can cost several thousand.- Yeah.- And with all the appliances in it,
0:12:15 > 0:12:21- I don't think there'll be much change from 30.- OK, that's good.
0:12:21 > 0:12:28'Rose's relaxed approach to the work is perhaps not what a standard renovator's would be.'
0:12:28 > 0:12:32# I've never known a girl like you before... #
0:12:32 > 0:12:39'And the timescale is relaxed, too, allowing six months before the siblings move in.'
0:12:39 > 0:12:45Once you've done this project, are you going to take your considerable expertise to other projects?
0:12:45 > 0:12:51I don't think so! I don't think we have any expertise as property developers
0:12:51 > 0:12:58or interior designers, but this project, as soon as it's made into our home
0:12:58 > 0:13:02and it's done to our spec, then we'll just call it quits.
0:13:02 > 0:13:06Lots of things to look forward to finding out when we come back.
0:13:06 > 0:13:12Yeah, great. It'll be done and under budget and on time.
0:13:12 > 0:13:18- Good. Lovely to meet you.- And you. - Take care.- Thank you.
0:13:19 > 0:13:24Well, Rose possibly not as well prepared for this as she might be,
0:13:24 > 0:13:30but with the help of Mum, Dad and brother, I'm sure she will be fine
0:13:30 > 0:13:34and the property itself could make a great home.
0:13:34 > 0:13:38Find out how it turns out later in the show.
0:13:41 > 0:13:47I'm in Littleover, a large suburb about three miles outside Derby city centre,
0:13:47 > 0:13:52to visit a property with a guide price of £48,000.
0:13:53 > 0:13:58I'm here to see a two-bedroomed bungalow situated in a popular location
0:13:58 > 0:14:04and actually nicely located on this little private green area. And this is it.
0:14:05 > 0:14:10Now you've probably realised it's not standard.
0:14:10 > 0:14:14Not standard at all. Not standard construction for a start.
0:14:14 > 0:14:17No, it's a prefab.
0:14:17 > 0:14:19Hmm. Could be a problem.
0:14:20 > 0:14:26After World War Two, Winston Churchill ordered the construction of prefabs like these
0:14:26 > 0:14:31to meet a predicted shortfall in housing when the troops returned.
0:14:31 > 0:14:36They were made to be put up quickly using pre-made panels built in factories.
0:14:36 > 0:14:40They provided all mod cons, but were meant to be temporary
0:14:40 > 0:14:44and had a planned life expectancy of up to just 10 years.
0:14:44 > 0:14:49But over 60 years later, the prefabs are as popular as ever.
0:14:55 > 0:14:58OK, elegant entry number one(!)
0:14:58 > 0:15:02What are we going to find? Well, interesting.
0:15:02 > 0:15:07Layout works. Living room area there, kitchen off that way.
0:15:07 > 0:15:13Two bedrooms and a bathroom there. What you have to get your head round is this really is non-standard.
0:15:13 > 0:15:17You've got some storage areas here, like a cupboard.
0:15:17 > 0:15:21It's metal. Walls - are they nice and solid?
0:15:22 > 0:15:25No, they're not. Stud partitions.
0:15:25 > 0:15:31You almost feel like it's like a caravan that's got some dividing walls in it.
0:15:31 > 0:15:36So I think that's going to require a bit of specialist work.
0:15:36 > 0:15:41But, on the plus side, the layout is simple, but it works.
0:15:43 > 0:15:49Of course, the property is very dated. Many fixtures and fittings don't seem to have changed
0:15:49 > 0:15:51since it was built in the 1940s.
0:15:51 > 0:15:56This bungalow is a fascinating slice of architectural history.
0:15:56 > 0:16:02The back wall of the bathroom is one prefabricated metal piece with built-in shelves.
0:16:02 > 0:16:08The thing about prefabricated houses is that they've always been enormously popular.
0:16:08 > 0:16:15I've been told they were earmarked for demolition, but local residents objected. Sadly, however,
0:16:15 > 0:16:19they're less popular with lenders so getting a mortgage can be tricky.
0:16:21 > 0:16:25So I'm mulling this over and I'm coming round to thinking
0:16:25 > 0:16:30that renovating this might not be as big a job as I thought.
0:16:30 > 0:16:34You haven't got brick and concrete, well, in the walls, but not exposed.
0:16:34 > 0:16:41I think that means it could be that to do this up might not be too big a job.
0:16:41 > 0:16:47There's certainly things to rip out, like these metal cupboards, but that lounge is great.
0:16:47 > 0:16:51And then you come through here into the kitchen.
0:16:51 > 0:16:53Fantastic.
0:16:53 > 0:16:57Look at this colour. It's a little princess's palace.
0:16:57 > 0:17:03Pink everywhere. On the floor, the cupboards, the walls. I mean, it has a certain charm,
0:17:03 > 0:17:10but I think possibly a bit of your renovation budget is required in here.
0:17:10 > 0:17:16Yes, one of the main issues with post-war prefabs like this is the lack of insulation,
0:17:16 > 0:17:23as there are no cavity walls here. You can remedy that with a brick skin on the exterior walls,
0:17:23 > 0:17:29which also makes them more acceptable to mortgage companies, but that can be a costly venture.
0:17:29 > 0:17:34Taking into account that relatively low £48,000 guide price,
0:17:34 > 0:17:40- we asked the auctioneer to tell us about these popular prefabs. - Why are they still here?
0:17:40 > 0:17:44Because people like them, there's a good market for them
0:17:44 > 0:17:50and I don't think the council have any plans to remove them. People go for them.
0:17:50 > 0:17:57So once it's renovated, what rental could you achieve for this two-bedroom bungalow?
0:17:58 > 0:18:05If this was renovated, it would have a rental value of about £450-£500 per calendar month.
0:18:05 > 0:18:08How about its resale value?
0:18:08 > 0:18:15When renovated, assuming that it wasn't bricked round, this would have a value of £80,000-£85,000.
0:18:15 > 0:18:21If it was bricked round, you might increase that by another £10,000, so up to £95,000.
0:18:23 > 0:18:29Well, it was only meant to last a few years, but this property is still going strong.
0:18:29 > 0:18:35It's going to take a bit of effort and money to turn it from its current post-war state
0:18:35 > 0:18:39to something more modern, but these places are endearingly popular,
0:18:39 > 0:18:43so I'm sure it was a hard-fought lot when it went under the hammer.
0:18:45 > 0:18:50May I say 50,000 to start me? 50? 48?
0:18:50 > 0:18:52£48,000?
0:18:52 > 0:18:5545? 45 is my starter, thank you.
0:18:55 > 0:19:0045 is the opening bid. 46 I'm looking for. 46 I've got.
0:19:00 > 0:19:02At 46,000. 47.
0:19:02 > 0:19:0547. 48.
0:19:05 > 0:19:08At 48,000. 49?
0:19:08 > 0:19:1049 is bid. At 49. At 50.
0:19:10 > 0:19:1651 at the back. At 51. 52? £52,000.
0:19:16 > 0:19:1953. 54 for you, sir? At £53,000.
0:19:19 > 0:19:2354. 54. 55.
0:19:23 > 0:19:2656. 57.
0:19:26 > 0:19:2757.
0:19:27 > 0:19:2958?
0:19:29 > 0:19:32At 57,000. 58.
0:19:32 > 0:19:3459. 60?
0:19:36 > 0:19:40At £59,000. 60? I'll take 500 if it will help you.
0:19:40 > 0:19:4259,500.
0:19:42 > 0:19:4460,000.
0:19:44 > 0:19:47At 60. 500?
0:19:47 > 0:19:49At £60,000.
0:19:49 > 0:19:51Once, twice...
0:19:51 > 0:19:56Third time. Sold at 60,000. Thank you.
0:19:56 > 0:20:04That final bid of £60,000 was made by John. He attended the auction with his wife, Dawn.
0:20:05 > 0:20:12The couple have been buying and renting properties as a sideline to their day jobs for 20 years.
0:20:12 > 0:20:14Some people are just workaholics!
0:20:14 > 0:20:19I met them at the bungalow to find out more.
0:20:19 > 0:20:22John, Dawn, great to meet you both. Congratulations.
0:20:22 > 0:20:28- Thank you.- Interesting property. - Different.- Yeah. Tell me why you wanted to buy it.
0:20:28 > 0:20:35We invest in properties for a pension fund, really. We thought that was the best way to go.
0:20:35 > 0:20:39- Tell me how you got into it, Dawn. - By chance.- Really?
0:20:39 > 0:20:43Yes, we inherited property from parents,
0:20:43 > 0:20:48both times at a time when houses were at a very low value.
0:20:48 > 0:20:54So we decided that we would try letting and that's really where it snowballed.
0:20:54 > 0:21:02- And so this now provides, hopefully, a bit of financial security.- It should do.
0:21:02 > 0:21:07- When we get to retiring age. - We've not got round to retiring yet!
0:21:07 > 0:21:13- OK, well, that's good! What do you do when not doing this? - We're both accountants.- OK.
0:21:13 > 0:21:15One in industry and I'm in practice.
0:21:15 > 0:21:21I'm financial director at a scrap yard - motor vehicle dismantlers!
0:21:21 > 0:21:26We're not supposed to call them scrap yards, but everybody does.
0:21:26 > 0:21:31This will be Dawn and John's 16th property renovation.
0:21:33 > 0:21:35Frankly, it's been very rewarding.
0:21:35 > 0:21:39We've enjoyed it. We've had some super tenants.
0:21:39 > 0:21:43We've had the odd disaster, but everybody's had those!
0:21:43 > 0:21:48Getting the whole tenancy thing going puts a lot of people off,
0:21:48 > 0:21:54that fear of phone calls in the middle of the night, bad tenants not leaving, trashing the place.
0:21:54 > 0:21:58It happens. The sort of phone call you get is at seven in the morning.
0:21:58 > 0:22:06"My daughter got up in the night, put the bath on and the ceiling's come down in the kitchen."
0:22:06 > 0:22:08So?
0:22:08 > 0:22:15- At one time that was very concerning. Now it's insured, OK, let's deal with it.- Right, good.
0:22:15 > 0:22:20- So why this particular property? - We've already got one like this. - Oh, right.
0:22:20 > 0:22:25At the other end of the estate. And it was very successful.
0:22:25 > 0:22:32- John's always had a yearning for these. He likes them.- Successful how?- Never any trouble letting it.
0:22:32 > 0:22:37# Then it's all just a little bit of history repeating... #
0:22:37 > 0:22:42So this very experienced property developing couple already have the refurbishment
0:22:42 > 0:22:46of a similar post-war prefab under their belts.
0:22:46 > 0:22:51Let's hope this one holds no surprises for them.
0:22:51 > 0:22:53So, tell me, what's the plan?
0:22:53 > 0:23:00- Start with the windows.- Right. - uPVC windows, doors, new gutterings.
0:23:00 > 0:23:05It'll keep it watertight and that'll do that side of it. Internally,
0:23:05 > 0:23:09we'll replace the bathroom, replace the kitchen.
0:23:09 > 0:23:15The walls themselves, we want to consider applying a plasterboard with insulation behind it
0:23:15 > 0:23:21- to try to give a bit more insulation to the structure.- On the inside. - Inside.- Right.
0:23:21 > 0:23:25Decorate it and hopefully find a nice tenant.
0:23:25 > 0:23:28What about the budget?
0:23:28 > 0:23:32- Dawn said about £20,000. I thought about 30.- Wow.
0:23:32 > 0:23:37- You're accountants... - Yes, but it's a peculiar building.
0:23:37 > 0:23:43- We may find something we don't expect.- You're allowing contingencies.- Well, that,
0:23:43 > 0:23:49- and I don't want to skimp it. I'll regret that afterwards if I do. - And it'll all take how long?
0:23:49 > 0:23:53This is dependant on the people that do it and the weather.
0:23:53 > 0:23:57- We're saying if it's finished by March, that'll be fine.- Six months.
0:23:57 > 0:24:00Six months. But we'll see.
0:24:00 > 0:24:07- Congratulations. Good luck with it. - Thank you.- We look forward to seeing it.- Come see us again.- We will.
0:24:09 > 0:24:14Well, John and Dawn have purchased plenty of properties in the past,
0:24:14 > 0:24:19but will this post-war prefab cause them any problems?
0:24:19 > 0:24:23You can find out later in the show.
0:24:24 > 0:24:29'Coming up: I'm bowled over by this terraced flat in Dover.'
0:24:29 > 0:24:33It really is fantastic. I am very excited.
0:24:34 > 0:24:38'Back in Derby, it's not alarm bells that have been ringing.'
0:24:38 > 0:24:40MUSICAL BELL CHIMES
0:24:40 > 0:24:44That's my doorbell ringing. I love my doorbell.
0:24:45 > 0:24:51First, we find out how Rose is settling in to her new home in London.
0:24:51 > 0:24:55I just love it. I love being in my flat.
0:24:58 > 0:25:03We head back to Battersea in southwest London now
0:25:03 > 0:25:09to see how Rose and her mum Liz got on with renovating this two-bedroom split-level flat.
0:25:09 > 0:25:14Along with her brother, William, Rose had bought it for £422,000.
0:25:14 > 0:25:20They had some help from the Bank of Mum and Dad and the plan was to make this into their new home,
0:25:20 > 0:25:28but in all the excitement Rose missed one or two major issues, like the cracks in the walls.
0:25:28 > 0:25:35- Talk about the big cracks. - There is a big crack I noticed, yes, but...
0:25:35 > 0:25:40- Where's that, Mum? Where is it? - Just down there.
0:25:40 > 0:25:42I don't know anything about it!
0:25:42 > 0:25:50I wasn't too worried about Rose as mum Liz was switched on and dad Geoff was on hand to help
0:25:50 > 0:25:56with the DIY. They had six months and £30,000 to turn this sad-looking flat into a home.
0:25:56 > 0:26:00Bang on six months later, we're back.
0:26:00 > 0:26:06Straight away we can see the living room has been given a new lease of life.
0:26:06 > 0:26:12The walls have been decorated in white, contrasting with the warm tones of the hardwood flooring.
0:26:12 > 0:26:19The first-floor bedroom is now a beautifully stylish and colourful kitchen, again with wood flooring
0:26:19 > 0:26:21which continues throughout the flat.
0:26:22 > 0:26:27The old kitchen has now become a bedroom. In fact, it's Rose's.
0:26:27 > 0:26:34And if you're thinking it looks smaller, you're right. The partition wall for the toilet was moved
0:26:34 > 0:26:38to create a larger shower room and toilet.
0:26:41 > 0:26:47On the top level, William's bedroom has been renovated and decorated in clean, simple lines.
0:26:47 > 0:26:53A new doorway has been created to give the room its own en suite shower room
0:26:53 > 0:26:57and the original landing door is now blocked.
0:26:57 > 0:27:03The work on the flat is now all finished, so for Rose and William, a software engineer,
0:27:03 > 0:27:06this is now their new home.
0:27:07 > 0:27:11I just love it. I love being in my flat
0:27:11 > 0:27:16and I love how everything is designed for me and my brother to live here.
0:27:16 > 0:27:23The flat is, now it's been renovated, absolutely fantastic. In particular, the kitchen.
0:27:23 > 0:27:29Everything is new and clean and exactly how I want it. I love living here.
0:27:32 > 0:27:38It's easy to see why. While the finish is to a good standard and the decor is simple,
0:27:38 > 0:27:43for Rose and William one of the joys of finally having their own property
0:27:43 > 0:27:48is the freedom to have their own personal touches.
0:27:48 > 0:27:52Basically, he likes things that are new and very clean.
0:27:52 > 0:27:58And I like things that are old and have character and you get them in an auction or flea market.
0:27:58 > 0:28:03I think most of it ended up the way Rose wanted it to be.
0:28:03 > 0:28:07Ultimately, I think there's a difference in priorities.
0:28:07 > 0:28:12I think Rose cared more. I just wanted somewhere to live.
0:28:12 > 0:28:17That difference in taste was also reflected in the approach to the renovation,
0:28:17 > 0:28:23- which did lead to differences of opinion.- There have been a few arguments along the way.
0:28:23 > 0:28:29Not so much while we're living here, but along the way, refurbishing it.
0:28:30 > 0:28:35Luckily for the pair, the renovation itself wasn't a tense affair.
0:28:35 > 0:28:41Stripping the flat down to the bare brick and giving it a complete overhaul presented no major problems
0:28:41 > 0:28:47but the floorboards, which were rotten, did need replacing. As for those cracks...
0:28:47 > 0:28:54The cracks, there was no problem with them. They weren't anything structural or to be worried about,
0:28:54 > 0:28:57so that's all fine.
0:28:57 > 0:29:03I'm glad Rose finally got up to speed with that little problem, but while she travelled from Kent
0:29:03 > 0:29:09to keep an eye on the renovation, William and Rose didn't get their hands dirty
0:29:09 > 0:29:13because it was another family member who was more hands on here.
0:29:13 > 0:29:18Dad has been really heavily involved, but not in the manual labour sense.
0:29:18 > 0:29:24But he's been project managing everything. Although I got him and my mum to do all the wallpapering.
0:29:24 > 0:29:27They're a good wallpapering team.
0:29:27 > 0:29:33Mum Liz and dad Geoff have also been crucial in helping to buy this flat
0:29:33 > 0:29:40and get the siblings onto the property ladder, though Rose and William are now paying them back.
0:29:40 > 0:29:44But when it came to finances, did they spend all of that £30,000 budget?
0:29:44 > 0:29:52All in all, the house and the renovations came to, roughly, £500,000.
0:29:52 > 0:29:55That breaks down into 422 at auction,
0:29:55 > 0:30:00plus roughly £27,000 of fees
0:30:00 > 0:30:06and then an additional £50,000 of renovation.
0:30:06 > 0:30:11Well, I thought that £30,000 was pretty decent, but £50,000?!
0:30:11 > 0:30:14That's a definite overspend by any reckoning,
0:30:14 > 0:30:18but it is primarily a home, not so much of an investment.
0:30:20 > 0:30:28Time to hear the thoughts of two local property experts. We start with one who viewed the flat before.
0:30:28 > 0:30:34The changes they've made are really positive. Original two bedrooms with a disjointed bathroom,
0:30:34 > 0:30:41wrong location for the kitchen. They've made it into two bedrooms, two bathrooms. Really positive.
0:30:41 > 0:30:46The flat's brilliant. Great for the demographic who would buy it.
0:30:46 > 0:30:51The fixtures and fittings are brilliant, loved the wood floors and the kept the old windows.
0:30:51 > 0:30:56The total spend on this renovation is £499,000.
0:30:56 > 0:31:01So could they make a profit if they decided to sell?
0:31:01 > 0:31:04I think this could sell at £575,000.
0:31:04 > 0:31:07I would put it on the market for £575,000.
0:31:07 > 0:31:14With that valuation, the pair could make a £76,000 profit, minus any tax and other expenses.
0:31:16 > 0:31:22That's a much nicer flat than we could have afforded without going through this process. Excellent.
0:31:22 > 0:31:29It's a great price, but we're not interested in selling. We'll stay here, but it's amazing to hear.
0:31:29 > 0:31:34If they ever decide to let the flat, they could get a monthly rental income
0:31:34 > 0:31:37of £1,700-£2,100 per calendar month.
0:31:37 > 0:31:42That could mean an annual yield of 4%-5%.
0:31:43 > 0:31:50But for now, after waiting so long for their own place, Rose and William are happy to be home owners
0:31:50 > 0:31:54and to enjoy all the benefits that come with that.
0:31:54 > 0:32:01It really feels like a proper home and it's amazing just seeing everything coming together
0:32:01 > 0:32:04and everything exactly as we want it everywhere.
0:32:04 > 0:32:07So it's been really good.
0:32:12 > 0:32:19Dover was once a military town, so the closure of the barracks in 2007 was a contributing factor
0:32:19 > 0:32:22in the town's economic decline.
0:32:22 > 0:32:27Now, however, there is investment planned for the town centre
0:32:27 > 0:32:34and with a fast train link to the capital, Dover could be marching to a brighter tune in the future.
0:32:34 > 0:32:38The property I'm here to see is part of this grand terrace,
0:32:38 > 0:32:43built around 1850 to house officers stationed in the town.
0:32:43 > 0:32:49The whole terrace is Grade 2 listed due to its dominating position overlooking Dover,
0:32:49 > 0:32:53but the bit I'm interested in is the ground floor one-bedroom flat
0:32:53 > 0:32:56which had a guide price of £60,000.
0:32:59 > 0:33:03The property does have an imposing facade and location,
0:33:03 > 0:33:08but this would not pass out on parade without closer inspection.
0:33:08 > 0:33:13There are some tell-tale signs that the building needs significant work,
0:33:13 > 0:33:17but the communal hall hints at its former glory.
0:33:17 > 0:33:20Oh, very dated.
0:33:21 > 0:33:23But all is forgiven.
0:33:23 > 0:33:27Wow! Look at this room!
0:33:27 > 0:33:32This is everything I love, love, love, love.
0:33:32 > 0:33:34Wasn't expecting this.
0:33:34 > 0:33:42Absolutely stunning. And huge. The proportions are enormous, amazing. It feels so right.
0:33:42 > 0:33:48I mean, look at this stunning piece of marble here. Absolutely gorge.
0:33:48 > 0:33:54I'm not sure about this wallpaper - we'll have to get rid of that - but look at the cornicing.
0:33:54 > 0:34:00Beautiful. The ceiling rose. I think it's lots of bits of fruit cobbled together - pineapples,
0:34:00 > 0:34:04pears, some apples. Really beautiful.
0:34:04 > 0:34:10Over here you've got these shutters. The thing that strikes me is it's all in such good condition.
0:34:10 > 0:34:14Look. Deep skirting boards, just how I love them.
0:34:14 > 0:34:17It really is fantastic. I am very excited.
0:34:19 > 0:34:24What a find! A truly magnificent room.
0:34:24 > 0:34:30This is just the kind of historic property that I love to see being returned to its former glory.
0:34:30 > 0:34:35# Making me glorious... #
0:34:37 > 0:34:41Part of the living room has been separated off to create a bedroom.
0:34:41 > 0:34:45It's not huge, but it also has these lovely, original shutters.
0:34:45 > 0:34:52The kitchen's at the front of this flat. It's also got gloriously high ceilings.
0:34:52 > 0:34:59It'll need completely stripping out, but this is a big room that I'd love to redesign.
0:34:59 > 0:35:03I reckon you could fit a table and chairs in, no problem.
0:35:03 > 0:35:06The bathroom - same story there.
0:35:06 > 0:35:12Last, but not least, there's this strange little lean-to at the back, leading out onto...
0:35:12 > 0:35:14Well, you just wait.
0:35:14 > 0:35:16Oh!
0:35:16 > 0:35:23Wow! Just look at that sweeping terrace. It really is quite breathtaking here.
0:35:23 > 0:35:28Interestingly, they've covered this little area in, this veranda.
0:35:28 > 0:35:34I'd like to get rid of all that and emulate the neighbours. It would be so lovely to sit outside.
0:35:34 > 0:35:39That's fabulous. You get outside space, a share of the garden.
0:35:39 > 0:35:44I'm not sure which part, but it's wonderful to be here in Dover, have a garden,
0:35:44 > 0:35:49have a wonderful flat. This little place is something special.
0:35:49 > 0:35:55To sit in this garden with that Victorian terrace for a view would be a delight.
0:35:55 > 0:35:58# Magic in the air... #
0:35:58 > 0:36:03And I'm told that in the winter, when the trees lose their leaves,
0:36:03 > 0:36:06you've got a decent view of Dover as well.
0:36:06 > 0:36:12This flat would make a very comfortable and enjoyable place to live once you make it your own.
0:36:12 > 0:36:16But before that there's something to bear in mind.
0:36:16 > 0:36:21The state of the flat itself isn't great, but you can sort that out.
0:36:21 > 0:36:23It's controllable and dealable with.
0:36:23 > 0:36:28The condition of the building and communal areas is more complicated.
0:36:28 > 0:36:34If I was taking this place on, I'd be thoroughly researching why the building
0:36:34 > 0:36:39is not being maintained, why nobody is taking responsibility for it,
0:36:39 > 0:36:45whether there's an annual service charge set up for maintenance and a sinking fund for major works.
0:36:45 > 0:36:52It's all about protecting your own investment and making sure any works won't cost you an arm and a leg
0:36:52 > 0:36:54at the same time.
0:36:57 > 0:37:03Allowing a Grade 2-listed building to fall into disrepair could prove an expensive business,
0:37:03 > 0:37:08especially if there's no sinking fund in place to cover repairs.
0:37:08 > 0:37:15So although that £60,000 guide price could seem a bargain, there might be a catch. You know the drill.
0:37:15 > 0:37:18Always check the legal pack.
0:37:19 > 0:37:24We asked a local estate agent to tell us what he thinks of it.
0:37:24 > 0:37:26These buildings are old
0:37:26 > 0:37:32and always require continual maintenance. You're very close to the sea and coast here.
0:37:32 > 0:37:37You have a lot of salt in the atmosphere. They need to be protected.
0:37:37 > 0:37:42The flat went to auction guided at £60,000,
0:37:42 > 0:37:46so how much could it be worth after a refurbishment?
0:37:46 > 0:37:50Once improved, this flat will probably be £80,000-£100,000.
0:37:50 > 0:37:54And the rental potential of the flat once done up?
0:37:54 > 0:38:01The rental value, in good order, is going to be £450-£500 per calendar month.
0:38:01 > 0:38:07This is a little piece of Dover history which has character and masses of charm.
0:38:07 > 0:38:13It's not without its issues, but for someone it will be well worth the hassle.
0:38:13 > 0:38:15Let's see who that was.
0:38:15 > 0:38:19Lot 16 is the ground-floor flat in Dover.
0:38:19 > 0:38:25What may I say? £55,000 anywhere? 55. Thank you very much.
0:38:25 > 0:38:27£55,000 I have.
0:38:27 > 0:38:31At £55,000 I am bid. 56 I have.
0:38:31 > 0:38:33And 58?
0:38:33 > 0:38:38And eight I have. At 58. And 60? And 60. And 62?
0:38:38 > 0:38:43No? At £60,000 I have. Anybody else can join in here.
0:38:43 > 0:38:49Well, at £60,000, then. Hammer's up at £60,000 for the first time.
0:38:49 > 0:38:5160,000 for the second time.
0:38:51 > 0:38:5660,000 for the third and final time. At £60,000, are you all done?
0:38:56 > 0:38:59Sold at 60,000.
0:38:59 > 0:39:06That very happy bidder, who paid the exact guide price of £60,000 is Hugh.
0:39:06 > 0:39:10He and his wife Judith live in Market Harborough.
0:39:10 > 0:39:15He works in a warehouse and Judith's an optician.
0:39:15 > 0:39:22# Cos these rose-coloured glasses... #
0:39:22 > 0:39:28'I met up with them both at the property to find out why they'd eyed up this fabulous flat.'
0:39:28 > 0:39:35Judith and Hugh, I don't always get quite this excited about flats, but I love this place!
0:39:35 > 0:39:39- Oh, lovely. - Why did you want to buy it?
0:39:39 > 0:39:44- We own the top two flats already. - In this building? - In this building, yes.
0:39:44 > 0:39:50And this one came up for sale so for numerous reasons we thought we'd have a look round
0:39:50 > 0:39:57- and went for it.- Why do you want to own another one in the building? What is it that you love so much?
0:39:57 > 0:40:01I think this terrace is one of the finer points of Dover.
0:40:01 > 0:40:06If you drive in to Dover, you'll see the castle and then this terrace.
0:40:06 > 0:40:11It's such a magnificent building, I just wanted to have part of it. It's lovely.
0:40:11 > 0:40:18Having the top two flats is wonderful, with views to the sea, but this has access to the garden.
0:40:18 > 0:40:24What you don't expect is when you walk out the back and you see that beautiful sweep.
0:40:24 > 0:40:32- It just looks stunning.- Years ago, you could actually see the structure of the terrace much better
0:40:32 > 0:40:38- from the town. The trees have obviously grown. - You know Dover well?- I grew up here.
0:40:38 > 0:40:43I've been a long time away, but I came back and fell in love with the place.
0:40:43 > 0:40:45# We are happy people
0:40:46 > 0:40:49# We are happy people... #
0:40:49 > 0:40:56Well, what better place to purchase property than one that makes you happy every time you're there?
0:40:56 > 0:41:01Now that Judith and Hugh own flats at both the top and the bottom,
0:41:01 > 0:41:07I wonder what their plans are to lift the spirits of this ground-floor flat.
0:41:07 > 0:41:14- How are you going to turn this place around?- We thought about moving the kitchen into the bedroom
0:41:14 > 0:41:20and swapping them over, but that's probably too expensive. We need new kitchen, new bathroom.
0:41:20 > 0:41:28The electrics have got to be upgraded and the central heating is poor. We need to sort that out.
0:41:28 > 0:41:32Beyond that, I don't think we'll do more than bring it up to date.
0:41:32 > 0:41:39That's a really big list of jobs to do and I'm not sure the couple's budget of 10 grand will be enough.
0:41:41 > 0:41:47However, the good news is that there is a sinking fund in place for the five flats.
0:41:47 > 0:41:54The couple had inside knowledge of that as they already owned the two top-floor flats.
0:41:54 > 0:41:57What are your immediate plans for the flat?
0:41:57 > 0:42:04- Once the work are done, we hope to keep it for ourselves as a holiday home.- Really?
0:42:04 > 0:42:11We were originally thinking of having the top-floor flat, but we decided to rent it out
0:42:11 > 0:42:16and get some money back. But now, this time, we're going to get some pleasure out of this.
0:42:16 > 0:42:23- Judith, when you told me about that, your whole face lit up. You really do love it here.- Yes.
0:42:23 > 0:42:27- Both of you.- Yeah, we do. - I am so excited to see it.
0:42:27 > 0:42:33- Congratulations, guys. Well done, thank you. - Thank you.- Thank you.
0:42:33 > 0:42:41I think this is a stunning flat. It's very, very special and there shouldn't be any nasty surprises
0:42:41 > 0:42:47because they know the place inside out, warts and all. Still, I hope the works don't escalate
0:42:47 > 0:42:55and costs don't spiral out of control. You can find out how it goes later on in the show.
0:42:55 > 0:43:01Transforming a property from a worn-out shell can be very rewarding and profitable.
0:43:01 > 0:43:07But did everything go smoothly for our buyers today? Let's go back and find out.
0:43:07 > 0:43:12It's time to return to the popular suburb of Derby, Littleover,
0:43:12 > 0:43:17where I viewed this two-bedroom bungalow. It's a post-WWII prefab.
0:43:17 > 0:43:24They were originally only expected to have a 10-year lifespan, but over 60 years later
0:43:24 > 0:43:28the prefabs in this area are proving as popular as ever.
0:43:33 > 0:43:39The property was purchased at auction by husband and wife John and Dawn for £60,000.
0:43:39 > 0:43:45They have an extensive rental portfolio which they hope will provide income for their retirement,
0:43:45 > 0:43:48whenever that might be!
0:43:49 > 0:43:54- So this now provides financial security for your future?- Should do.
0:43:54 > 0:44:00- When we get to retiring age. - We've just not got around to retiring yet!
0:44:00 > 0:44:06After 60-plus years, this post-war prefab is still standing
0:44:06 > 0:44:10and just seven months after we first met the couple, we're back.
0:44:10 > 0:44:14# I'm still standing better than I ever did
0:44:14 > 0:44:19# Looking like a true survivor And feeling like a little kid
0:44:20 > 0:44:25# I'm still standing after all this time
0:44:25 > 0:44:30# Looking like a true survivor And feeling like a little kid
0:44:30 > 0:44:32# I'm still standing
0:44:32 > 0:44:35# Yeah, yeah, yeah... #
0:44:35 > 0:44:41The place has been totally refurbished from double-glazed windows, new doors,
0:44:41 > 0:44:43interior and exterior.
0:44:43 > 0:44:49We've had it plastered right through, electrics upgraded, new bathroom suite, new kitchen.
0:44:49 > 0:44:55Externally, we've done the drainpipes, the fascias. Almost like a new build.
0:44:57 > 0:45:01John, Dawn and their team of tradespeople have been busy.
0:45:01 > 0:45:08I have to agree with John. It does look like a new-build, inside and out.
0:45:08 > 0:45:12Outside, of course, was totally dug up. We block paved a large drive
0:45:12 > 0:45:17to give people access to the property. It's permit parking only.
0:45:17 > 0:45:21And then we've lawned it as an easy way of maintaining.
0:45:21 > 0:45:24So it really went quite smoothly.
0:45:24 > 0:45:28One problem with prefabs is the cold.
0:45:28 > 0:45:33Due to the lack of insulation on the walls, they can be chilly.
0:45:33 > 0:45:37To prevent this and ensure the bungalow is warm and snug,
0:45:37 > 0:45:43the couple have added specialist insulation panels to all the walls and insulated the loft.
0:45:43 > 0:45:47It keeps the place cosy while also helping to keep heating costs down.
0:45:48 > 0:45:55Dawn has also added a feature that will either warm your heart or send a chill down your spine.
0:45:57 > 0:45:59MUSICAL DOORBELL
0:46:03 > 0:46:05Yes, that's my doorbell ringing.
0:46:05 > 0:46:12I love my doorbell. I am slightly deaf at home and I don't hear my own,
0:46:12 > 0:46:19but that's got so many tunes on. If you get tired of one, you can change it. It's a lot of fun.
0:46:19 > 0:46:22Go on, Dawn. Give us another.
0:46:22 > 0:46:24PLAYS "Ode To Joy"
0:46:28 > 0:46:31Well, I think that's quite enough.
0:46:31 > 0:46:33Oh, all right, just one more.
0:46:33 > 0:46:35NEW TUNE PLAYS
0:46:37 > 0:46:39# I'm thinking about my doorbell
0:46:39 > 0:46:43# When you gonna ring it? When you gonna ring it? #
0:46:43 > 0:46:49I think it's best we move swiftly on. Surely a pair of accountants like Dawn and John
0:46:49 > 0:46:55have kept a firm grasp of the budget? They had differing views on what the spend should be.
0:46:55 > 0:46:59Dawn reckoned 20 grand while John thought 30 might be necessary.
0:46:59 > 0:47:01So who was right?
0:47:01 > 0:47:08Well, we paid £60,000 for the house at auction and with the legal costs and the auctioneer's costs,
0:47:08 > 0:47:11that came to slightly over £61,000.
0:47:11 > 0:47:17So we must have spent... around something just under £24,000.
0:47:17 > 0:47:22That gives Dawn and John a total outlay of around £85,000.
0:47:22 > 0:47:28They had hoped to have this bungalow ready to let in six months, but it has actually taken seven.
0:47:28 > 0:47:32However, they can be justifiably proud of what they've achieved.
0:47:34 > 0:47:38It will make somebody a lovely home and that's what we like.
0:47:38 > 0:47:41We hope they stay a long while.
0:47:41 > 0:47:45We try to provide good properties in a good state
0:47:45 > 0:47:50because we both feel if we don't, the tenant won't look after them.
0:47:50 > 0:47:54And we probably won't get such good tenants.
0:47:56 > 0:48:03With the work John and Dawn have done on this prefab, I think it'll be standing in another 60 years'.
0:48:04 > 0:48:11We invited two local property experts to give us their opinions on John and Dawn's renovation.
0:48:11 > 0:48:15Anyone looking at this property will be impressed
0:48:15 > 0:48:21by the fact it's all new, clean, tidy. New bathroom, new kitchen,
0:48:21 > 0:48:26carpets, decorations. It's like a brand-new property inside.
0:48:26 > 0:48:32Impressions are good. It's been redecorated, new flooring, new kitchen and bathroom.
0:48:32 > 0:48:38I like the way the owner has block-paved the driveway, giving it extra car parking space.
0:48:38 > 0:48:44It seems the experts are impressed. Bearing in mind John and Dawn's total outlay of £85,000,
0:48:44 > 0:48:49how much do they believe this property could achieve if sold?
0:48:49 > 0:48:54I would say if this went on the market it would have an asking price
0:48:54 > 0:49:00of around £90,000. It might be a shade more than that.
0:49:00 > 0:49:05If I was putting this on the market for sale, I'd go for £85,000.
0:49:05 > 0:49:10Those valuations would mean the couple breaking even or, at most, making five grand,
0:49:10 > 0:49:15minus the usual tax and expenses. What do they think of that?
0:49:16 > 0:49:20I wouldn't sell it for less than £100,000.
0:49:20 > 0:49:27I don't know why they've gone so low on the valuation. It's certainly far less than our expectation
0:49:27 > 0:49:29and our expectations were not high.
0:49:29 > 0:49:35Disappointment with the sale valuations, but this bungalow is destined for the rental market.
0:49:37 > 0:49:43In terms of rental value, I think these would rent out at about £475 a calendar month.
0:49:43 > 0:49:48There's not a lot of floor space, but it's a popular location.
0:49:48 > 0:49:54If they want to rent the property out, I would suggest a rental per calendar month of £495.
0:49:54 > 0:50:01That top rate of £495 per calendar month, if achieved, would give the couple
0:50:01 > 0:50:04a respectable yield of around 7%.
0:50:04 > 0:50:11I'm sorry, but the agents... No, I'm sorry. I don't think they're right.
0:50:14 > 0:50:21And in this case John and Dawn were right. The property is now rented out for £550 per calendar month,
0:50:21 > 0:50:27so they have completed this, their 16th property renovation, successfully.
0:50:27 > 0:50:31It doesn't sound as though they'll stop there.
0:50:31 > 0:50:35We get enjoyment out of it. It's not a chore.
0:50:35 > 0:50:40I think that's very important when you do these sort of things.
0:50:43 > 0:50:47Welcome back to Dover in Kent.
0:50:47 > 0:50:50# And time is running out for me
0:50:50 > 0:50:54# I wish that he would hurry down from Dover... #
0:50:54 > 0:50:59This historic Grade 2-listed building was built around 1850.
0:50:59 > 0:51:01# From Dover... #
0:51:01 > 0:51:07I loved the sweep of this fantastic terrace and so do Hugh and his wife Judith.
0:51:07 > 0:51:12They already owned two flats in this part of the terrace, which they let.
0:51:14 > 0:51:18Then they bought this ground-floor flat for £60,000 at auction.
0:51:18 > 0:51:21It needed a total refurbishment.
0:51:21 > 0:51:23How will you turn it around?
0:51:23 > 0:51:28We need new kitchen, new bathroom, the electrics need upgraded.
0:51:28 > 0:51:33Beyond that, we won't do anything more than bring it up to date.
0:51:33 > 0:51:37Judith and Hugh were going to keep this flat as their holiday home.
0:51:37 > 0:51:42They planned to spend about £10,000 redoing the inside.
0:51:42 > 0:51:45An added expense they faced was refurbishing the exterior,
0:51:45 > 0:51:52which each flat had to contribute to and they now owned three in the building.
0:51:52 > 0:51:59It's now 9½ months later and the outside of this Grade 2-listed building is being restored
0:51:59 > 0:52:02to its former glory. Good news
0:52:02 > 0:52:06because the inside of Hugh and Judith's flat has been refurbished.
0:52:11 > 0:52:15The grand sitting room has been fully restored.
0:52:22 > 0:52:26And there's been a similar transformation in the kitchen.
0:52:29 > 0:52:33Well, really, pretty much everything has changed in here.
0:52:33 > 0:52:38If you remember, this corner was very ugly, a lot of pipework.
0:52:38 > 0:52:44We got our carpenter to make a cupboard. That's hidden everything away very nicely.
0:52:44 > 0:52:50There was also units all the way round, so we decided just to put units along the one wall.
0:52:50 > 0:52:57We've managed to keep this space in the corner as an eating area. Our major discovery was the fireplace.
0:52:57 > 0:53:02We thought it was wood, but we realised it was marble. We uncovered that.
0:53:02 > 0:53:07It took a lot of work. We've ordered a shelf to go on top
0:53:07 > 0:53:13to make it look more authentic again. I'm looking forward to seeing that when it's finished.
0:53:13 > 0:53:18I really love the high ceilings in this flat. What a throwback to a more elegant era.
0:53:18 > 0:53:25I'm very impressed by the effect the couple have created in the bathroom. The black and white
0:53:25 > 0:53:29mimics the old Victorian tiles which would have been used originally.
0:53:29 > 0:53:36Like the sitting room, the bedroom at the back now looks straight out onto the garden without obstruction.
0:53:36 > 0:53:41As you might remember, this was all enclosed.
0:53:41 > 0:53:46There was a rotten, grotty conservatory here,
0:53:46 > 0:53:51but the first job we did, I came down on a Sunday and started removing it,
0:53:51 > 0:53:56much to the delight of our neighbours as well.
0:53:56 > 0:54:02There's still some more work to do. I'll paint the railings black and the woodwork needs another coat,
0:54:02 > 0:54:08but it's really improved. We're trying to get this property back to how it should look, really.
0:54:08 > 0:54:15It's proved to be the perfect time for them to add this flat to the two they already owned here.
0:54:15 > 0:54:20Inside and out, this Grade 2 property is going up in the world.
0:54:20 > 0:54:25A huge amount has been done to the outside. We've had a new roof
0:54:25 > 0:54:31and they're working on the pointing. Hopefully, from having one of the worst houses in the road,
0:54:31 > 0:54:34it'll be one of the better ones.
0:54:34 > 0:54:41Each flat had to contribute about £7,500 to top up the shortfall in the sinking fund
0:54:41 > 0:54:46that's used for the exterior maintenance. As they own three,
0:54:46 > 0:54:50that's a whopping £22,500 towards the outside repair work.
0:54:50 > 0:54:57Back inside, the couple started off doing a lot of the decorating themselves,
0:54:57 > 0:55:01removing the woodchip paper and nicotine-stained walls.
0:55:01 > 0:55:07- The worst thing from my point of view was when we realised we'd got to plaster the whole flat.- Yes.
0:55:07 > 0:55:12We really hoped to get away without paying to plaster the whole flat.
0:55:12 > 0:55:17Every time we started doing another bit, we realised more needed doing.
0:55:17 > 0:55:23I'm just wondering if, in the end, that ambitious £10,000 budget was rather over-optimistic,
0:55:23 > 0:55:27- as I'd feared. - We've definitely gone over.
0:55:27 > 0:55:33I think we're probably at around 13, but we'll probably end up, when everything is added up,
0:55:33 > 0:55:36having spent a little more than that.
0:55:36 > 0:55:43Based on their current spend of £13,000, plus the 60 grand they paid at auction
0:55:43 > 0:55:45and the £7,500 for the exterior,
0:55:45 > 0:55:52that brings their total outlay here to £80,500.
0:55:52 > 0:55:58Time to hear what two local estate agents think of the refurbished flat, starting with the one
0:55:58 > 0:56:01who viewed it before.
0:56:01 > 0:56:05I think the changes here are fantastic. They've transformed it.
0:56:05 > 0:56:09'They've finished it really nicely. They've tried to maintain'
0:56:09 > 0:56:16some of the features of the property, but modernise it at the same time and they've achieved a good job.
0:56:16 > 0:56:20Although Judith and Hugh are going to keep this flat for themselves,
0:56:20 > 0:56:26they have two others in the block which they let out. I'm sure they'd be interested in rental potential.
0:56:27 > 0:56:34I think if this were to be let, the rental value of it now would be about £550 per calendar month.
0:56:34 > 0:56:40This flat on the rental market would command a rent of about £500 per calendar month.
0:56:40 > 0:56:45- The rental value sounds about right from what we know of the area.- Yes.
0:56:45 > 0:56:48So pretty pleased with that.
0:56:49 > 0:56:56Bearing in mind their £80,500 investment here, how much could it sell on for now?
0:56:56 > 0:57:01I think if you were going to sell the flat, you would think about marketing it
0:57:01 > 0:57:05for about 95 and settle for anything between £85,000 and £95,000.
0:57:05 > 0:57:12If this were to be sold now, I think I'd put it in the market at somewhere in the region of £95,000-£100,000.
0:57:12 > 0:57:19That range of valuations from £85,000 to £100,000 would produce a profit of between £4,500
0:57:19 > 0:57:22and £19,500.
0:57:22 > 0:57:26I'm actually pretty pleased with those agents' valuations.
0:57:26 > 0:57:30We were slightly worried that we had spent more than we should have done,
0:57:30 > 0:57:33- but that sounds perfectly reasonable.- It does.
0:57:33 > 0:57:41They always planned to keep this for their holiday use, but are they tempted to let or even sell?
0:57:41 > 0:57:47No, we're definitely using it ourselves. We've put all this effort in and want the benefit ourselves.
0:57:47 > 0:57:54- Sitting out on the balcony in the evening, or eating breakfast, will be very enjoyable.- Yeah.
0:57:59 > 0:58:03Whether you're a complete novice or a property professional,
0:58:03 > 0:58:09- there are always lessons to be learned about buying property. - So make sure you join us next time.
0:58:09 > 0:58:12- We'll see you then.- Goodbye.
0:58:32 > 0:58:35Subtitles by Red Bee Media Ltd