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-Welcome to the show. -They say every house tells a story. We've found that to be true! | 0:00:02 | 0:00:07 | |
There are always tales to tell and stories to uncover when you buy your home under the hammer. | 0:00:07 | 0:00:14 | |
Properties sold at auction are sold on a "buyer beware" basis. | 0:00:39 | 0:00:44 | |
It's up to YOU to check out the property thoroughly before you bid. | 0:00:44 | 0:00:48 | |
Or you could be in for some nasty surprises. Let's see if today's bidders were lucky. | 0:00:48 | 0:00:55 | |
'I've seen it all on Homes Under The Hammer, but this property in London is rather special.' | 0:00:56 | 0:01:02 | |
It's already setting itself apart. | 0:01:02 | 0:01:05 | |
'In Derby I give a masterclass in how to enter a room in style.' | 0:01:06 | 0:01:10 | |
OK, elegant entry number one. | 0:01:12 | 0:01:15 | |
'And the decor in this flat in Dover is dated, but...' | 0:01:16 | 0:01:21 | |
All is forgiven. Wow! | 0:01:21 | 0:01:23 | |
Look at this room! | 0:01:23 | 0:01:26 | |
All these properties were sold at auction and we'll find out who bought them and what they paid | 0:01:27 | 0:01:33 | |
when they went under the hammer. | 0:01:33 | 0:01:35 | |
'I'm in southwest London in Battersea. | 0:01:38 | 0:01:42 | |
'The area has undergone significant regeneration in recent years and now has more than its share | 0:01:42 | 0:01:48 | |
'of smart bars and bistros. It's a pretty cool place to live and more affordable than Chelsea or Fulham, | 0:01:48 | 0:01:56 | |
'so if you want cachet for less cash, this could be the place for you.' | 0:01:56 | 0:02:02 | |
So a good area and the property sounds good, too. | 0:02:02 | 0:02:06 | |
In fact, the auction catalogue says it would give a potential purchaser an ideal opportunity | 0:02:06 | 0:02:12 | |
to carry out works to their own specification. Anyway, it's a two-bedroom flat over two floors | 0:02:12 | 0:02:19 | |
in this lovely Victorian building. Let's take a look inside. | 0:02:19 | 0:02:23 | |
This leasehold flat is split-level on the first and second floor. | 0:02:23 | 0:02:27 | |
The guide price was £340,000 plus. That's a pretty penny for a two-bedroom flat. | 0:02:27 | 0:02:33 | |
So through your own door up the first flight of stairs to this little level | 0:02:33 | 0:02:39 | |
where you've got your kitchen. It needs a bit of work, but it's a good-size space. Separate loo there. | 0:02:39 | 0:02:46 | |
Bit of a crack there. That needs investigating. | 0:02:46 | 0:02:49 | |
Up another set of stairs. I love all these different levels. It gives it a nice feel. | 0:02:49 | 0:02:55 | |
That continues in here. Even in this stairwell, lots and lots of space. | 0:02:55 | 0:02:59 | |
Light thrown down, natural light, from that skylight up there. | 0:02:59 | 0:03:04 | |
First of your two bedrooms on that side and then through into an absolute gem. | 0:03:04 | 0:03:11 | |
This is your front living room area, this big bay window again casting lots of light into here. | 0:03:11 | 0:03:18 | |
Look at the high ceilings. I'd like to see a fireplace there. | 0:03:18 | 0:03:22 | |
Apart from that, this flat is already setting itself apart. | 0:03:22 | 0:03:27 | |
'There are two bedrooms in this flat - one on the first floor next to the living room | 0:03:27 | 0:03:32 | |
'and the second is on the top. Space like this in London is at a premium. | 0:03:32 | 0:03:37 | |
'Although the dingy decor doesn't do the flat any justice, | 0:03:37 | 0:03:42 | |
'if you gave it a spruce up and let the light flood in, that would brighten it no end. | 0:03:42 | 0:03:49 | |
'But that's for the future.' | 0:03:49 | 0:03:52 | |
Just check out the bedroom here. Something's niggling me a bit. | 0:03:52 | 0:03:56 | |
Sure enough, in the corner here we are seeing a few signs of plaster coming off the walls | 0:03:56 | 0:04:02 | |
and a crack there. | 0:04:02 | 0:04:04 | |
'Are the cracks a cause for concern? I'm not sure. What I am sure about | 0:04:04 | 0:04:09 | |
'is that I would get a structural survey done on this property before I bid on it at auction.' | 0:04:09 | 0:04:16 | |
I really do like all the stairs and different levels in this property | 0:04:16 | 0:04:20 | |
and there might actually be scope to even do more. Bathroom there, no loo. That's easily rectified. | 0:04:20 | 0:04:28 | |
And then through into this room, which is the second bedroom. | 0:04:28 | 0:04:33 | |
There is loft space above here and above other parts of the property. | 0:04:33 | 0:04:38 | |
Maybe you could think about doing something really clever, | 0:04:38 | 0:04:42 | |
maybe putting in even more floors perhaps, Dormers here and there. | 0:04:42 | 0:04:47 | |
While I'm up here, half-decent room as it is, although... | 0:04:47 | 0:04:51 | |
carrying on the crack theme, so to speak, that's not good. | 0:04:51 | 0:04:56 | |
A few more over here as well. Is it a big issue? They're not huge. | 0:04:56 | 0:05:01 | |
My guess is it's some kind of historical settlement. In fact, looking out of the window here, | 0:05:01 | 0:05:08 | |
super-sleuth Roberts might have found a few reasons why that is. | 0:05:08 | 0:05:12 | |
Just across there, a relatively recent - compared to the age of this house - development. | 0:05:12 | 0:05:19 | |
This whole part of London was quite heavily bombed in the war, | 0:05:19 | 0:05:23 | |
so it may well be that that part of around here was subject to bomb damage | 0:05:23 | 0:05:29 | |
and the vibrations or whatever have caused a few problems in here. | 0:05:29 | 0:05:34 | |
It's worth getting it checked out. On the face of it, not too much of a problem, though. | 0:05:34 | 0:05:39 | |
'But cracks aside, this flat has a great deal of potential in a variety of configurations. | 0:05:39 | 0:05:45 | |
'Option one, renovate it in the present layout. Option two, create a downstairs bathroom | 0:05:45 | 0:05:51 | |
'and add a loo to the upstairs bathroom, | 0:05:51 | 0:05:55 | |
'or option three, expand into the loft to add that all-important value-added square footage. | 0:05:55 | 0:06:01 | |
'With all those possibilities to consider, it's time to hear from a local estate agent | 0:06:01 | 0:06:07 | |
'about this two-bed flat guided at £340,000 plus.' | 0:06:07 | 0:06:11 | |
It's very tired. | 0:06:11 | 0:06:14 | |
Needs a lot of decoration. There are a few cracks to look at, | 0:06:14 | 0:06:18 | |
but great property, great location and really good space. | 0:06:18 | 0:06:23 | |
'Bearing in mind the great potential the flat has, what are the possible returns here?' | 0:06:23 | 0:06:29 | |
If this property was renovated to a good standard, I'd value this property at £490,000-£500,000. | 0:06:29 | 0:06:35 | |
If the purchasers decided to turn to two bedrooms, two bathrooms, | 0:06:35 | 0:06:39 | |
they might achieve about the £525,000 mark. | 0:06:39 | 0:06:43 | |
If the purchasers decided to do the full extension, go into the loft, I think they could achieve | 0:06:43 | 0:06:49 | |
anything from £565,000-£585,000. | 0:06:49 | 0:06:53 | |
'If you could afford it, a loft extension would provide a good rental return. | 0:06:53 | 0:06:58 | |
'The estate agents believe £2,000-£2,200 per calendar month is achievable. | 0:06:58 | 0:07:05 | |
'With a second bathroom added, he believes the property could achieve £1,700 per calendar month. | 0:07:05 | 0:07:11 | |
'But what about keeping it in its current layout?' | 0:07:13 | 0:07:16 | |
It would achieve £1,500 a month. | 0:07:16 | 0:07:19 | |
It's a flat by name, but I've seen smaller houses. I love this place and its potential for expansion. | 0:07:19 | 0:07:26 | |
A few issues with those cracks, but a great one to go for. Let's see who agreed. | 0:07:26 | 0:07:32 | |
Start at 300. It's not going to go below three. 300 down here. | 0:07:32 | 0:07:37 | |
305? | 0:07:37 | 0:07:38 | |
305. 310. | 0:07:38 | 0:07:41 | |
315. 320. | 0:07:41 | 0:07:43 | |
There were two parties keenly contesting this lot. We rejoin the auction when it reached £422,000. | 0:07:43 | 0:07:50 | |
422. 423? | 0:07:51 | 0:07:54 | |
422, back to you. | 0:07:56 | 0:07:58 | |
423 elsewhere? If not, 422 on my right. | 0:07:58 | 0:08:01 | |
Anyone else? 422. | 0:08:01 | 0:08:04 | |
First time, second time. | 0:08:04 | 0:08:06 | |
Third and last time. All done? Sold. 422. Well done. | 0:08:06 | 0:08:12 | |
Those successful bidders were Liz and her son William. | 0:08:12 | 0:08:15 | |
William, a software engineer, was away on business, so it was Liz and her daughter Rose | 0:08:15 | 0:08:21 | |
who met me back at their new £422,000 purchase to talk about their plans. | 0:08:21 | 0:08:28 | |
Rose is a freelance journalist, while Liz is a homemaker. | 0:08:28 | 0:08:32 | |
Could this flat be made into a home? | 0:08:32 | 0:08:36 | |
-Rose, Liz, lovely to meet you both. Congratulations. -Thank you. | 0:08:36 | 0:08:41 | |
-Tell me why you wanted to buy this. -Me and my brother are looking for somewhere to live. | 0:08:41 | 0:08:46 | |
We know the area very well and live round the corner. It's to make our own little home. | 0:08:46 | 0:08:54 | |
-You're in rented accommodation? -We're just renting in a flat around the corner | 0:08:54 | 0:08:59 | |
and wanted to do something with our money, so buying was the best option. | 0:08:59 | 0:09:04 | |
And share the costs? | 0:09:04 | 0:09:06 | |
Yeah, exactly. My brother's buying the majority of it. I needed him to get anything at all! | 0:09:06 | 0:09:13 | |
It's tough, certainly, around the London area for starting out and buying your first one. | 0:09:13 | 0:09:20 | |
-Yeah. All my friends are quite surprised that I can even get on the property ladder. -Wow. | 0:09:20 | 0:09:26 | |
It needs to be two people with independent incomes to get anywhere. Luckily, I have that with my brother. | 0:09:26 | 0:09:32 | |
'They're also lucky to be getting support from Mum and their dad, Geoff, who provided funds | 0:09:32 | 0:09:37 | |
'to buy the flat in the first place. Rose and William are taking a mortgage out to repay their parents, | 0:09:37 | 0:09:44 | |
'but another source of financial help proved invaluable.' | 0:09:44 | 0:09:49 | |
My deposit came mainly from our granddad, when he died. Our inheritance money has gone into here. | 0:09:49 | 0:09:55 | |
-I'm sure he'd be happy about that. -Yeah, I think he would. -So what are you going to do with it? | 0:09:55 | 0:10:02 | |
Just do it up in a homer. Nothing too major. | 0:10:02 | 0:10:06 | |
We'll make the bathroom bigger and turn the upstairs bathroom next to the master into an en suite. | 0:10:06 | 0:10:12 | |
Then, other than that, just obviously paint all the walls, put in the furniture, | 0:10:12 | 0:10:18 | |
-things like that. -Right. -But we have to have it all replastered and rewired. -Yeah! | 0:10:18 | 0:10:24 | |
-There's a lot of initial work. -And renovate all the floorboards. | 0:10:24 | 0:10:29 | |
-Yeah. -There's quite a lot of work to do before you get the paintbrush out. | 0:10:29 | 0:10:35 | |
I'll ask the question again. Mum, what are you planning to do to the place? | 0:10:35 | 0:10:40 | |
'It's just as well that mum Liz is aware that the flat does need a full renovation | 0:10:41 | 0:10:48 | |
'from replastering to rewiring. It was sold by Wandsworth Council, | 0:10:48 | 0:10:53 | |
'subject to the decent home standard, which stipulates that it has to be habitable within 6 months. | 0:10:53 | 0:10:59 | |
'The current thinking is that dad Geoff will be doing the renovation, with tradesmen when necessary.' | 0:10:59 | 0:11:07 | |
Do we have to talk about the cracks? Big cracks...and things? | 0:11:07 | 0:11:11 | |
-Big cracks. There is a big crack I noticed, but... -Where's that, Mum? Where's that crack? | 0:11:11 | 0:11:18 | |
-Just down there, isn't it? -I don't know anything about it! | 0:11:18 | 0:11:22 | |
Well, there was a survey done and that would have highlighted the major issues. | 0:11:22 | 0:11:28 | |
All they've said is it needs extensive plastering. I presume it's a superficial crack. | 0:11:28 | 0:11:34 | |
-Or historical. -Yeah. And there's two houses either side. I can't see how the house can fall down. -Right. | 0:11:34 | 0:11:41 | |
So what's the budget for the work? | 0:11:42 | 0:11:45 | |
-The budget is like...30 grand? -We're thinking £30,000. -30? | 0:11:45 | 0:11:49 | |
-Wow. What are you going to do? -That's exactly what I thought! | 0:11:49 | 0:11:54 | |
When that was what they came up with. | 0:11:54 | 0:11:57 | |
-I don't know what we'll do with that. That's what I said to you. -You're hysterical. | 0:11:57 | 0:12:03 | |
-Yeah. -Two bathrooms to be done, there's a whole new fitted kitchen. -All the rewiring. | 0:12:04 | 0:12:10 | |
-The kitchen can cost several thousand. -Yeah. -And with all the appliances in it, | 0:12:10 | 0:12:15 | |
-I don't think there'll be much change from 30. -OK, that's good. | 0:12:15 | 0:12:21 | |
'Rose's relaxed approach to the work is perhaps not what a standard renovator's would be.' | 0:12:21 | 0:12:28 | |
# I've never known a girl like you before... # | 0:12:28 | 0:12:32 | |
'And the timescale is relaxed, too, allowing six months before the siblings move in.' | 0:12:32 | 0:12:39 | |
Once you've done this project, are you going to take your considerable expertise to other projects? | 0:12:39 | 0:12:45 | |
I don't think so! I don't think we have any expertise as property developers | 0:12:45 | 0:12:51 | |
or interior designers, but this project, as soon as it's made into our home | 0:12:51 | 0:12:58 | |
and it's done to our spec, then we'll just call it quits. | 0:12:58 | 0:13:02 | |
Lots of things to look forward to finding out when we come back. | 0:13:02 | 0:13:06 | |
Yeah, great. It'll be done and under budget and on time. | 0:13:06 | 0:13:12 | |
-Good. Lovely to meet you. -And you. -Take care. -Thank you. | 0:13:12 | 0:13:18 | |
Well, Rose possibly not as well prepared for this as she might be, | 0:13:19 | 0:13:24 | |
but with the help of Mum, Dad and brother, I'm sure she will be fine | 0:13:24 | 0:13:30 | |
and the property itself could make a great home. | 0:13:30 | 0:13:34 | |
Find out how it turns out later in the show. | 0:13:34 | 0:13:38 | |
I'm in Littleover, a large suburb about three miles outside Derby city centre, | 0:13:41 | 0:13:47 | |
to visit a property with a guide price of £48,000. | 0:13:47 | 0:13:52 | |
I'm here to see a two-bedroomed bungalow situated in a popular location | 0:13:53 | 0:13:58 | |
and actually nicely located on this little private green area. And this is it. | 0:13:58 | 0:14:04 | |
Now you've probably realised it's not standard. | 0:14:05 | 0:14:10 | |
Not standard at all. Not standard construction for a start. | 0:14:10 | 0:14:14 | |
No, it's a prefab. | 0:14:14 | 0:14:17 | |
Hmm. Could be a problem. | 0:14:17 | 0:14:19 | |
After World War Two, Winston Churchill ordered the construction of prefabs like these | 0:14:20 | 0:14:26 | |
to meet a predicted shortfall in housing when the troops returned. | 0:14:26 | 0:14:31 | |
They were made to be put up quickly using pre-made panels built in factories. | 0:14:31 | 0:14:36 | |
They provided all mod cons, but were meant to be temporary | 0:14:36 | 0:14:40 | |
and had a planned life expectancy of up to just 10 years. | 0:14:40 | 0:14:44 | |
But over 60 years later, the prefabs are as popular as ever. | 0:14:44 | 0:14:49 | |
OK, elegant entry number one(!) | 0:14:55 | 0:14:58 | |
What are we going to find? Well, interesting. | 0:14:58 | 0:15:02 | |
Layout works. Living room area there, kitchen off that way. | 0:15:02 | 0:15:07 | |
Two bedrooms and a bathroom there. What you have to get your head round is this really is non-standard. | 0:15:07 | 0:15:13 | |
You've got some storage areas here, like a cupboard. | 0:15:13 | 0:15:17 | |
It's metal. Walls - are they nice and solid? | 0:15:17 | 0:15:21 | |
No, they're not. Stud partitions. | 0:15:22 | 0:15:25 | |
You almost feel like it's like a caravan that's got some dividing walls in it. | 0:15:25 | 0:15:31 | |
So I think that's going to require a bit of specialist work. | 0:15:31 | 0:15:36 | |
But, on the plus side, the layout is simple, but it works. | 0:15:36 | 0:15:41 | |
Of course, the property is very dated. Many fixtures and fittings don't seem to have changed | 0:15:43 | 0:15:49 | |
since it was built in the 1940s. | 0:15:49 | 0:15:51 | |
This bungalow is a fascinating slice of architectural history. | 0:15:51 | 0:15:56 | |
The back wall of the bathroom is one prefabricated metal piece with built-in shelves. | 0:15:56 | 0:16:02 | |
The thing about prefabricated houses is that they've always been enormously popular. | 0:16:02 | 0:16:08 | |
I've been told they were earmarked for demolition, but local residents objected. Sadly, however, | 0:16:08 | 0:16:15 | |
they're less popular with lenders so getting a mortgage can be tricky. | 0:16:15 | 0:16:19 | |
So I'm mulling this over and I'm coming round to thinking | 0:16:21 | 0:16:25 | |
that renovating this might not be as big a job as I thought. | 0:16:25 | 0:16:30 | |
You haven't got brick and concrete, well, in the walls, but not exposed. | 0:16:30 | 0:16:34 | |
I think that means it could be that to do this up might not be too big a job. | 0:16:34 | 0:16:41 | |
There's certainly things to rip out, like these metal cupboards, but that lounge is great. | 0:16:41 | 0:16:47 | |
And then you come through here into the kitchen. | 0:16:47 | 0:16:51 | |
Fantastic. | 0:16:51 | 0:16:53 | |
Look at this colour. It's a little princess's palace. | 0:16:53 | 0:16:57 | |
Pink everywhere. On the floor, the cupboards, the walls. I mean, it has a certain charm, | 0:16:57 | 0:17:03 | |
but I think possibly a bit of your renovation budget is required in here. | 0:17:03 | 0:17:10 | |
Yes, one of the main issues with post-war prefabs like this is the lack of insulation, | 0:17:10 | 0:17:16 | |
as there are no cavity walls here. You can remedy that with a brick skin on the exterior walls, | 0:17:16 | 0:17:23 | |
which also makes them more acceptable to mortgage companies, but that can be a costly venture. | 0:17:23 | 0:17:29 | |
Taking into account that relatively low £48,000 guide price, | 0:17:29 | 0:17:34 | |
-we asked the auctioneer to tell us about these popular prefabs. -Why are they still here? | 0:17:34 | 0:17:40 | |
Because people like them, there's a good market for them | 0:17:40 | 0:17:44 | |
and I don't think the council have any plans to remove them. People go for them. | 0:17:44 | 0:17:50 | |
So once it's renovated, what rental could you achieve for this two-bedroom bungalow? | 0:17:50 | 0:17:57 | |
If this was renovated, it would have a rental value of about £450-£500 per calendar month. | 0:17:58 | 0:18:05 | |
How about its resale value? | 0:18:05 | 0:18:08 | |
When renovated, assuming that it wasn't bricked round, this would have a value of £80,000-£85,000. | 0:18:08 | 0:18:15 | |
If it was bricked round, you might increase that by another £10,000, so up to £95,000. | 0:18:15 | 0:18:21 | |
Well, it was only meant to last a few years, but this property is still going strong. | 0:18:23 | 0:18:29 | |
It's going to take a bit of effort and money to turn it from its current post-war state | 0:18:29 | 0:18:35 | |
to something more modern, but these places are endearingly popular, | 0:18:35 | 0:18:39 | |
so I'm sure it was a hard-fought lot when it went under the hammer. | 0:18:39 | 0:18:43 | |
May I say 50,000 to start me? 50? 48? | 0:18:45 | 0:18:50 | |
£48,000? | 0:18:50 | 0:18:52 | |
45? 45 is my starter, thank you. | 0:18:52 | 0:18:55 | |
45 is the opening bid. 46 I'm looking for. 46 I've got. | 0:18:55 | 0:19:00 | |
At 46,000. 47. | 0:19:00 | 0:19:02 | |
47. 48. | 0:19:02 | 0:19:05 | |
At 48,000. 49? | 0:19:05 | 0:19:08 | |
49 is bid. At 49. At 50. | 0:19:08 | 0:19:10 | |
51 at the back. At 51. 52? £52,000. | 0:19:10 | 0:19:16 | |
53. 54 for you, sir? At £53,000. | 0:19:16 | 0:19:19 | |
54. 54. 55. | 0:19:19 | 0:19:23 | |
56. 57. | 0:19:23 | 0:19:26 | |
57. | 0:19:26 | 0:19:27 | |
58? | 0:19:27 | 0:19:29 | |
At 57,000. 58. | 0:19:29 | 0:19:32 | |
59. 60? | 0:19:32 | 0:19:34 | |
At £59,000. 60? I'll take 500 if it will help you. | 0:19:36 | 0:19:40 | |
59,500. | 0:19:40 | 0:19:42 | |
60,000. | 0:19:42 | 0:19:44 | |
At 60. 500? | 0:19:44 | 0:19:47 | |
At £60,000. | 0:19:47 | 0:19:49 | |
Once, twice... | 0:19:49 | 0:19:51 | |
Third time. Sold at 60,000. Thank you. | 0:19:51 | 0:19:56 | |
That final bid of £60,000 was made by John. He attended the auction with his wife, Dawn. | 0:19:56 | 0:20:04 | |
The couple have been buying and renting properties as a sideline to their day jobs for 20 years. | 0:20:05 | 0:20:12 | |
Some people are just workaholics! | 0:20:12 | 0:20:14 | |
I met them at the bungalow to find out more. | 0:20:14 | 0:20:19 | |
John, Dawn, great to meet you both. Congratulations. | 0:20:19 | 0:20:22 | |
-Thank you. -Interesting property. -Different. -Yeah. Tell me why you wanted to buy it. | 0:20:22 | 0:20:28 | |
We invest in properties for a pension fund, really. We thought that was the best way to go. | 0:20:28 | 0:20:35 | |
-Tell me how you got into it, Dawn. -By chance. -Really? | 0:20:35 | 0:20:39 | |
Yes, we inherited property from parents, | 0:20:39 | 0:20:43 | |
both times at a time when houses were at a very low value. | 0:20:43 | 0:20:48 | |
So we decided that we would try letting and that's really where it snowballed. | 0:20:48 | 0:20:54 | |
-And so this now provides, hopefully, a bit of financial security. -It should do. | 0:20:54 | 0:21:02 | |
-When we get to retiring age. -We've not got round to retiring yet! | 0:21:02 | 0:21:07 | |
-OK, well, that's good! What do you do when not doing this? -We're both accountants. -OK. | 0:21:07 | 0:21:13 | |
One in industry and I'm in practice. | 0:21:13 | 0:21:15 | |
I'm financial director at a scrap yard - motor vehicle dismantlers! | 0:21:15 | 0:21:21 | |
We're not supposed to call them scrap yards, but everybody does. | 0:21:21 | 0:21:26 | |
This will be Dawn and John's 16th property renovation. | 0:21:26 | 0:21:31 | |
Frankly, it's been very rewarding. | 0:21:33 | 0:21:35 | |
We've enjoyed it. We've had some super tenants. | 0:21:35 | 0:21:39 | |
We've had the odd disaster, but everybody's had those! | 0:21:39 | 0:21:43 | |
Getting the whole tenancy thing going puts a lot of people off, | 0:21:43 | 0:21:48 | |
that fear of phone calls in the middle of the night, bad tenants not leaving, trashing the place. | 0:21:48 | 0:21:54 | |
It happens. The sort of phone call you get is at seven in the morning. | 0:21:54 | 0:21:58 | |
"My daughter got up in the night, put the bath on and the ceiling's come down in the kitchen." | 0:21:58 | 0:22:06 | |
So? | 0:22:06 | 0:22:08 | |
-At one time that was very concerning. Now it's insured, OK, let's deal with it. -Right, good. | 0:22:08 | 0:22:15 | |
-So why this particular property? -We've already got one like this. -Oh, right. | 0:22:15 | 0:22:20 | |
At the other end of the estate. And it was very successful. | 0:22:20 | 0:22:25 | |
-John's always had a yearning for these. He likes them. -Successful how? -Never any trouble letting it. | 0:22:25 | 0:22:32 | |
# Then it's all just a little bit of history repeating... # | 0:22:32 | 0:22:37 | |
So this very experienced property developing couple already have the refurbishment | 0:22:37 | 0:22:42 | |
of a similar post-war prefab under their belts. | 0:22:42 | 0:22:46 | |
Let's hope this one holds no surprises for them. | 0:22:46 | 0:22:51 | |
So, tell me, what's the plan? | 0:22:51 | 0:22:53 | |
-Start with the windows. -Right. -uPVC windows, doors, new gutterings. | 0:22:53 | 0:23:00 | |
It'll keep it watertight and that'll do that side of it. Internally, | 0:23:00 | 0:23:05 | |
we'll replace the bathroom, replace the kitchen. | 0:23:05 | 0:23:09 | |
The walls themselves, we want to consider applying a plasterboard with insulation behind it | 0:23:09 | 0:23:15 | |
-to try to give a bit more insulation to the structure. -On the inside. -Inside. -Right. | 0:23:15 | 0:23:21 | |
Decorate it and hopefully find a nice tenant. | 0:23:21 | 0:23:25 | |
What about the budget? | 0:23:25 | 0:23:28 | |
-Dawn said about £20,000. I thought about 30. -Wow. | 0:23:28 | 0:23:32 | |
-You're accountants... -Yes, but it's a peculiar building. | 0:23:32 | 0:23:37 | |
-We may find something we don't expect. -You're allowing contingencies. -Well, that, | 0:23:37 | 0:23:43 | |
-and I don't want to skimp it. I'll regret that afterwards if I do. -And it'll all take how long? | 0:23:43 | 0:23:49 | |
This is dependant on the people that do it and the weather. | 0:23:49 | 0:23:53 | |
-We're saying if it's finished by March, that'll be fine. -Six months. | 0:23:53 | 0:23:57 | |
Six months. But we'll see. | 0:23:57 | 0:24:00 | |
-Congratulations. Good luck with it. -Thank you. -We look forward to seeing it. -Come see us again. -We will. | 0:24:00 | 0:24:07 | |
Well, John and Dawn have purchased plenty of properties in the past, | 0:24:09 | 0:24:14 | |
but will this post-war prefab cause them any problems? | 0:24:14 | 0:24:19 | |
You can find out later in the show. | 0:24:19 | 0:24:23 | |
'Coming up: I'm bowled over by this terraced flat in Dover.' | 0:24:24 | 0:24:29 | |
It really is fantastic. I am very excited. | 0:24:29 | 0:24:33 | |
'Back in Derby, it's not alarm bells that have been ringing.' | 0:24:34 | 0:24:38 | |
MUSICAL BELL CHIMES | 0:24:38 | 0:24:40 | |
That's my doorbell ringing. I love my doorbell. | 0:24:40 | 0:24:44 | |
First, we find out how Rose is settling in to her new home in London. | 0:24:45 | 0:24:51 | |
I just love it. I love being in my flat. | 0:24:51 | 0:24:55 | |
We head back to Battersea in southwest London now | 0:24:58 | 0:25:03 | |
to see how Rose and her mum Liz got on with renovating this two-bedroom split-level flat. | 0:25:03 | 0:25:09 | |
Along with her brother, William, Rose had bought it for £422,000. | 0:25:09 | 0:25:14 | |
They had some help from the Bank of Mum and Dad and the plan was to make this into their new home, | 0:25:14 | 0:25:20 | |
but in all the excitement Rose missed one or two major issues, like the cracks in the walls. | 0:25:20 | 0:25:28 | |
-Talk about the big cracks. -There is a big crack I noticed, yes, but... | 0:25:28 | 0:25:35 | |
-Where's that, Mum? Where is it? -Just down there. | 0:25:35 | 0:25:40 | |
I don't know anything about it! | 0:25:40 | 0:25:42 | |
I wasn't too worried about Rose as mum Liz was switched on and dad Geoff was on hand to help | 0:25:42 | 0:25:50 | |
with the DIY. They had six months and £30,000 to turn this sad-looking flat into a home. | 0:25:50 | 0:25:56 | |
Bang on six months later, we're back. | 0:25:56 | 0:26:00 | |
Straight away we can see the living room has been given a new lease of life. | 0:26:00 | 0:26:06 | |
The walls have been decorated in white, contrasting with the warm tones of the hardwood flooring. | 0:26:06 | 0:26:12 | |
The first-floor bedroom is now a beautifully stylish and colourful kitchen, again with wood flooring | 0:26:12 | 0:26:19 | |
which continues throughout the flat. | 0:26:19 | 0:26:21 | |
The old kitchen has now become a bedroom. In fact, it's Rose's. | 0:26:22 | 0:26:27 | |
And if you're thinking it looks smaller, you're right. The partition wall for the toilet was moved | 0:26:27 | 0:26:34 | |
to create a larger shower room and toilet. | 0:26:34 | 0:26:38 | |
On the top level, William's bedroom has been renovated and decorated in clean, simple lines. | 0:26:41 | 0:26:47 | |
A new doorway has been created to give the room its own en suite shower room | 0:26:47 | 0:26:53 | |
and the original landing door is now blocked. | 0:26:53 | 0:26:57 | |
The work on the flat is now all finished, so for Rose and William, a software engineer, | 0:26:57 | 0:27:03 | |
this is now their new home. | 0:27:03 | 0:27:06 | |
I just love it. I love being in my flat | 0:27:07 | 0:27:11 | |
and I love how everything is designed for me and my brother to live here. | 0:27:11 | 0:27:16 | |
The flat is, now it's been renovated, absolutely fantastic. In particular, the kitchen. | 0:27:16 | 0:27:23 | |
Everything is new and clean and exactly how I want it. I love living here. | 0:27:23 | 0:27:29 | |
It's easy to see why. While the finish is to a good standard and the decor is simple, | 0:27:32 | 0:27:38 | |
for Rose and William one of the joys of finally having their own property | 0:27:38 | 0:27:43 | |
is the freedom to have their own personal touches. | 0:27:43 | 0:27:48 | |
Basically, he likes things that are new and very clean. | 0:27:48 | 0:27:52 | |
And I like things that are old and have character and you get them in an auction or flea market. | 0:27:52 | 0:27:58 | |
I think most of it ended up the way Rose wanted it to be. | 0:27:58 | 0:28:03 | |
Ultimately, I think there's a difference in priorities. | 0:28:03 | 0:28:07 | |
I think Rose cared more. I just wanted somewhere to live. | 0:28:07 | 0:28:12 | |
That difference in taste was also reflected in the approach to the renovation, | 0:28:12 | 0:28:17 | |
-which did lead to differences of opinion. -There have been a few arguments along the way. | 0:28:17 | 0:28:23 | |
Not so much while we're living here, but along the way, refurbishing it. | 0:28:23 | 0:28:29 | |
Luckily for the pair, the renovation itself wasn't a tense affair. | 0:28:30 | 0:28:35 | |
Stripping the flat down to the bare brick and giving it a complete overhaul presented no major problems | 0:28:35 | 0:28:41 | |
but the floorboards, which were rotten, did need replacing. As for those cracks... | 0:28:41 | 0:28:47 | |
The cracks, there was no problem with them. They weren't anything structural or to be worried about, | 0:28:47 | 0:28:54 | |
so that's all fine. | 0:28:54 | 0:28:57 | |
I'm glad Rose finally got up to speed with that little problem, but while she travelled from Kent | 0:28:57 | 0:29:03 | |
to keep an eye on the renovation, William and Rose didn't get their hands dirty | 0:29:03 | 0:29:09 | |
because it was another family member who was more hands on here. | 0:29:09 | 0:29:13 | |
Dad has been really heavily involved, but not in the manual labour sense. | 0:29:13 | 0:29:18 | |
But he's been project managing everything. Although I got him and my mum to do all the wallpapering. | 0:29:18 | 0:29:24 | |
They're a good wallpapering team. | 0:29:24 | 0:29:27 | |
Mum Liz and dad Geoff have also been crucial in helping to buy this flat | 0:29:27 | 0:29:33 | |
and get the siblings onto the property ladder, though Rose and William are now paying them back. | 0:29:33 | 0:29:40 | |
But when it came to finances, did they spend all of that £30,000 budget? | 0:29:40 | 0:29:44 | |
All in all, the house and the renovations came to, roughly, £500,000. | 0:29:44 | 0:29:52 | |
That breaks down into 422 at auction, | 0:29:52 | 0:29:55 | |
plus roughly £27,000 of fees | 0:29:55 | 0:30:00 | |
and then an additional £50,000 of renovation. | 0:30:00 | 0:30:06 | |
Well, I thought that £30,000 was pretty decent, but £50,000?! | 0:30:06 | 0:30:11 | |
That's a definite overspend by any reckoning, | 0:30:11 | 0:30:14 | |
but it is primarily a home, not so much of an investment. | 0:30:14 | 0:30:18 | |
Time to hear the thoughts of two local property experts. We start with one who viewed the flat before. | 0:30:20 | 0:30:28 | |
The changes they've made are really positive. Original two bedrooms with a disjointed bathroom, | 0:30:28 | 0:30:34 | |
wrong location for the kitchen. They've made it into two bedrooms, two bathrooms. Really positive. | 0:30:34 | 0:30:41 | |
The flat's brilliant. Great for the demographic who would buy it. | 0:30:41 | 0:30:46 | |
The fixtures and fittings are brilliant, loved the wood floors and the kept the old windows. | 0:30:46 | 0:30:51 | |
The total spend on this renovation is £499,000. | 0:30:51 | 0:30:56 | |
So could they make a profit if they decided to sell? | 0:30:56 | 0:31:01 | |
I think this could sell at £575,000. | 0:31:01 | 0:31:04 | |
I would put it on the market for £575,000. | 0:31:04 | 0:31:07 | |
With that valuation, the pair could make a £76,000 profit, minus any tax and other expenses. | 0:31:07 | 0:31:14 | |
That's a much nicer flat than we could have afforded without going through this process. Excellent. | 0:31:16 | 0:31:22 | |
It's a great price, but we're not interested in selling. We'll stay here, but it's amazing to hear. | 0:31:22 | 0:31:29 | |
If they ever decide to let the flat, they could get a monthly rental income | 0:31:29 | 0:31:34 | |
of £1,700-£2,100 per calendar month. | 0:31:34 | 0:31:37 | |
That could mean an annual yield of 4%-5%. | 0:31:37 | 0:31:42 | |
But for now, after waiting so long for their own place, Rose and William are happy to be home owners | 0:31:43 | 0:31:50 | |
and to enjoy all the benefits that come with that. | 0:31:50 | 0:31:54 | |
It really feels like a proper home and it's amazing just seeing everything coming together | 0:31:54 | 0:32:01 | |
and everything exactly as we want it everywhere. | 0:32:01 | 0:32:04 | |
So it's been really good. | 0:32:04 | 0:32:07 | |
Dover was once a military town, so the closure of the barracks in 2007 was a contributing factor | 0:32:12 | 0:32:19 | |
in the town's economic decline. | 0:32:19 | 0:32:22 | |
Now, however, there is investment planned for the town centre | 0:32:22 | 0:32:27 | |
and with a fast train link to the capital, Dover could be marching to a brighter tune in the future. | 0:32:27 | 0:32:34 | |
The property I'm here to see is part of this grand terrace, | 0:32:34 | 0:32:38 | |
built around 1850 to house officers stationed in the town. | 0:32:38 | 0:32:43 | |
The whole terrace is Grade 2 listed due to its dominating position overlooking Dover, | 0:32:43 | 0:32:49 | |
but the bit I'm interested in is the ground floor one-bedroom flat | 0:32:49 | 0:32:53 | |
which had a guide price of £60,000. | 0:32:53 | 0:32:56 | |
The property does have an imposing facade and location, | 0:32:59 | 0:33:03 | |
but this would not pass out on parade without closer inspection. | 0:33:03 | 0:33:08 | |
There are some tell-tale signs that the building needs significant work, | 0:33:08 | 0:33:13 | |
but the communal hall hints at its former glory. | 0:33:13 | 0:33:17 | |
Oh, very dated. | 0:33:17 | 0:33:20 | |
But all is forgiven. | 0:33:21 | 0:33:23 | |
Wow! Look at this room! | 0:33:23 | 0:33:27 | |
This is everything I love, love, love, love. | 0:33:27 | 0:33:32 | |
Wasn't expecting this. | 0:33:32 | 0:33:34 | |
Absolutely stunning. And huge. The proportions are enormous, amazing. It feels so right. | 0:33:34 | 0:33:42 | |
I mean, look at this stunning piece of marble here. Absolutely gorge. | 0:33:42 | 0:33:48 | |
I'm not sure about this wallpaper - we'll have to get rid of that - but look at the cornicing. | 0:33:48 | 0:33:54 | |
Beautiful. The ceiling rose. I think it's lots of bits of fruit cobbled together - pineapples, | 0:33:54 | 0:34:00 | |
pears, some apples. Really beautiful. | 0:34:00 | 0:34:04 | |
Over here you've got these shutters. The thing that strikes me is it's all in such good condition. | 0:34:04 | 0:34:10 | |
Look. Deep skirting boards, just how I love them. | 0:34:10 | 0:34:14 | |
It really is fantastic. I am very excited. | 0:34:14 | 0:34:17 | |
What a find! A truly magnificent room. | 0:34:19 | 0:34:24 | |
This is just the kind of historic property that I love to see being returned to its former glory. | 0:34:24 | 0:34:30 | |
# Making me glorious... # | 0:34:30 | 0:34:35 | |
Part of the living room has been separated off to create a bedroom. | 0:34:37 | 0:34:41 | |
It's not huge, but it also has these lovely, original shutters. | 0:34:41 | 0:34:45 | |
The kitchen's at the front of this flat. It's also got gloriously high ceilings. | 0:34:45 | 0:34:52 | |
It'll need completely stripping out, but this is a big room that I'd love to redesign. | 0:34:52 | 0:34:59 | |
I reckon you could fit a table and chairs in, no problem. | 0:34:59 | 0:35:03 | |
The bathroom - same story there. | 0:35:03 | 0:35:06 | |
Last, but not least, there's this strange little lean-to at the back, leading out onto... | 0:35:06 | 0:35:12 | |
Well, you just wait. | 0:35:12 | 0:35:14 | |
Oh! | 0:35:14 | 0:35:16 | |
Wow! Just look at that sweeping terrace. It really is quite breathtaking here. | 0:35:16 | 0:35:23 | |
Interestingly, they've covered this little area in, this veranda. | 0:35:23 | 0:35:28 | |
I'd like to get rid of all that and emulate the neighbours. It would be so lovely to sit outside. | 0:35:28 | 0:35:34 | |
That's fabulous. You get outside space, a share of the garden. | 0:35:34 | 0:35:39 | |
I'm not sure which part, but it's wonderful to be here in Dover, have a garden, | 0:35:39 | 0:35:44 | |
have a wonderful flat. This little place is something special. | 0:35:44 | 0:35:49 | |
To sit in this garden with that Victorian terrace for a view would be a delight. | 0:35:49 | 0:35:55 | |
# Magic in the air... # | 0:35:55 | 0:35:58 | |
And I'm told that in the winter, when the trees lose their leaves, | 0:35:58 | 0:36:03 | |
you've got a decent view of Dover as well. | 0:36:03 | 0:36:06 | |
This flat would make a very comfortable and enjoyable place to live once you make it your own. | 0:36:06 | 0:36:12 | |
But before that there's something to bear in mind. | 0:36:12 | 0:36:16 | |
The state of the flat itself isn't great, but you can sort that out. | 0:36:16 | 0:36:21 | |
It's controllable and dealable with. | 0:36:21 | 0:36:23 | |
The condition of the building and communal areas is more complicated. | 0:36:23 | 0:36:28 | |
If I was taking this place on, I'd be thoroughly researching why the building | 0:36:28 | 0:36:34 | |
is not being maintained, why nobody is taking responsibility for it, | 0:36:34 | 0:36:39 | |
whether there's an annual service charge set up for maintenance and a sinking fund for major works. | 0:36:39 | 0:36:45 | |
It's all about protecting your own investment and making sure any works won't cost you an arm and a leg | 0:36:45 | 0:36:52 | |
at the same time. | 0:36:52 | 0:36:54 | |
Allowing a Grade 2-listed building to fall into disrepair could prove an expensive business, | 0:36:57 | 0:37:03 | |
especially if there's no sinking fund in place to cover repairs. | 0:37:03 | 0:37:08 | |
So although that £60,000 guide price could seem a bargain, there might be a catch. You know the drill. | 0:37:08 | 0:37:15 | |
Always check the legal pack. | 0:37:15 | 0:37:18 | |
We asked a local estate agent to tell us what he thinks of it. | 0:37:19 | 0:37:24 | |
These buildings are old | 0:37:24 | 0:37:26 | |
and always require continual maintenance. You're very close to the sea and coast here. | 0:37:26 | 0:37:32 | |
You have a lot of salt in the atmosphere. They need to be protected. | 0:37:32 | 0:37:37 | |
The flat went to auction guided at £60,000, | 0:37:37 | 0:37:42 | |
so how much could it be worth after a refurbishment? | 0:37:42 | 0:37:46 | |
Once improved, this flat will probably be £80,000-£100,000. | 0:37:46 | 0:37:50 | |
And the rental potential of the flat once done up? | 0:37:50 | 0:37:54 | |
The rental value, in good order, is going to be £450-£500 per calendar month. | 0:37:54 | 0:38:01 | |
This is a little piece of Dover history which has character and masses of charm. | 0:38:01 | 0:38:07 | |
It's not without its issues, but for someone it will be well worth the hassle. | 0:38:07 | 0:38:13 | |
Let's see who that was. | 0:38:13 | 0:38:15 | |
Lot 16 is the ground-floor flat in Dover. | 0:38:15 | 0:38:19 | |
What may I say? £55,000 anywhere? 55. Thank you very much. | 0:38:19 | 0:38:25 | |
£55,000 I have. | 0:38:25 | 0:38:27 | |
At £55,000 I am bid. 56 I have. | 0:38:27 | 0:38:31 | |
And 58? | 0:38:31 | 0:38:33 | |
And eight I have. At 58. And 60? And 60. And 62? | 0:38:33 | 0:38:38 | |
No? At £60,000 I have. Anybody else can join in here. | 0:38:38 | 0:38:43 | |
Well, at £60,000, then. Hammer's up at £60,000 for the first time. | 0:38:43 | 0:38:49 | |
60,000 for the second time. | 0:38:49 | 0:38:51 | |
60,000 for the third and final time. At £60,000, are you all done? | 0:38:51 | 0:38:56 | |
Sold at 60,000. | 0:38:56 | 0:38:59 | |
That very happy bidder, who paid the exact guide price of £60,000 is Hugh. | 0:38:59 | 0:39:06 | |
He and his wife Judith live in Market Harborough. | 0:39:06 | 0:39:10 | |
He works in a warehouse and Judith's an optician. | 0:39:10 | 0:39:15 | |
# Cos these rose-coloured glasses... # | 0:39:15 | 0:39:22 | |
'I met up with them both at the property to find out why they'd eyed up this fabulous flat.' | 0:39:22 | 0:39:28 | |
Judith and Hugh, I don't always get quite this excited about flats, but I love this place! | 0:39:28 | 0:39:35 | |
-Oh, lovely. -Why did you want to buy it? | 0:39:35 | 0:39:39 | |
-We own the top two flats already. -In this building? -In this building, yes. | 0:39:39 | 0:39:44 | |
And this one came up for sale so for numerous reasons we thought we'd have a look round | 0:39:44 | 0:39:50 | |
-and went for it. -Why do you want to own another one in the building? What is it that you love so much? | 0:39:50 | 0:39:57 | |
I think this terrace is one of the finer points of Dover. | 0:39:57 | 0:40:01 | |
If you drive in to Dover, you'll see the castle and then this terrace. | 0:40:01 | 0:40:06 | |
It's such a magnificent building, I just wanted to have part of it. It's lovely. | 0:40:06 | 0:40:11 | |
Having the top two flats is wonderful, with views to the sea, but this has access to the garden. | 0:40:11 | 0:40:18 | |
What you don't expect is when you walk out the back and you see that beautiful sweep. | 0:40:18 | 0:40:24 | |
-It just looks stunning. -Years ago, you could actually see the structure of the terrace much better | 0:40:24 | 0:40:32 | |
-from the town. The trees have obviously grown. -You know Dover well? -I grew up here. | 0:40:32 | 0:40:38 | |
I've been a long time away, but I came back and fell in love with the place. | 0:40:38 | 0:40:43 | |
# We are happy people | 0:40:43 | 0:40:45 | |
# We are happy people... # | 0:40:46 | 0:40:49 | |
Well, what better place to purchase property than one that makes you happy every time you're there? | 0:40:49 | 0:40:56 | |
Now that Judith and Hugh own flats at both the top and the bottom, | 0:40:56 | 0:41:01 | |
I wonder what their plans are to lift the spirits of this ground-floor flat. | 0:41:01 | 0:41:07 | |
-How are you going to turn this place around? -We thought about moving the kitchen into the bedroom | 0:41:07 | 0:41:14 | |
and swapping them over, but that's probably too expensive. We need new kitchen, new bathroom. | 0:41:14 | 0:41:20 | |
The electrics have got to be upgraded and the central heating is poor. We need to sort that out. | 0:41:20 | 0:41:28 | |
Beyond that, I don't think we'll do more than bring it up to date. | 0:41:28 | 0:41:32 | |
That's a really big list of jobs to do and I'm not sure the couple's budget of 10 grand will be enough. | 0:41:32 | 0:41:39 | |
However, the good news is that there is a sinking fund in place for the five flats. | 0:41:41 | 0:41:47 | |
The couple had inside knowledge of that as they already owned the two top-floor flats. | 0:41:47 | 0:41:54 | |
What are your immediate plans for the flat? | 0:41:54 | 0:41:57 | |
-Once the work are done, we hope to keep it for ourselves as a holiday home. -Really? | 0:41:57 | 0:42:04 | |
We were originally thinking of having the top-floor flat, but we decided to rent it out | 0:42:04 | 0:42:11 | |
and get some money back. But now, this time, we're going to get some pleasure out of this. | 0:42:11 | 0:42:16 | |
-Judith, when you told me about that, your whole face lit up. You really do love it here. -Yes. | 0:42:16 | 0:42:23 | |
-Both of you. -Yeah, we do. -I am so excited to see it. | 0:42:23 | 0:42:27 | |
-Congratulations, guys. Well done, thank you. -Thank you. -Thank you. | 0:42:27 | 0:42:33 | |
I think this is a stunning flat. It's very, very special and there shouldn't be any nasty surprises | 0:42:33 | 0:42:41 | |
because they know the place inside out, warts and all. Still, I hope the works don't escalate | 0:42:41 | 0:42:47 | |
and costs don't spiral out of control. You can find out how it goes later on in the show. | 0:42:47 | 0:42:55 | |
Transforming a property from a worn-out shell can be very rewarding and profitable. | 0:42:55 | 0:43:01 | |
But did everything go smoothly for our buyers today? Let's go back and find out. | 0:43:01 | 0:43:07 | |
It's time to return to the popular suburb of Derby, Littleover, | 0:43:07 | 0:43:12 | |
where I viewed this two-bedroom bungalow. It's a post-WWII prefab. | 0:43:12 | 0:43:17 | |
They were originally only expected to have a 10-year lifespan, but over 60 years later | 0:43:17 | 0:43:24 | |
the prefabs in this area are proving as popular as ever. | 0:43:24 | 0:43:28 | |
The property was purchased at auction by husband and wife John and Dawn for £60,000. | 0:43:33 | 0:43:39 | |
They have an extensive rental portfolio which they hope will provide income for their retirement, | 0:43:39 | 0:43:45 | |
whenever that might be! | 0:43:45 | 0:43:48 | |
-So this now provides financial security for your future? -Should do. | 0:43:49 | 0:43:54 | |
-When we get to retiring age. -We've just not got around to retiring yet! | 0:43:54 | 0:44:00 | |
After 60-plus years, this post-war prefab is still standing | 0:44:00 | 0:44:06 | |
and just seven months after we first met the couple, we're back. | 0:44:06 | 0:44:10 | |
# I'm still standing better than I ever did | 0:44:10 | 0:44:14 | |
# Looking like a true survivor And feeling like a little kid | 0:44:14 | 0:44:19 | |
# I'm still standing after all this time | 0:44:20 | 0:44:25 | |
# Looking like a true survivor And feeling like a little kid | 0:44:25 | 0:44:30 | |
# I'm still standing | 0:44:30 | 0:44:32 | |
# Yeah, yeah, yeah... # | 0:44:32 | 0:44:35 | |
The place has been totally refurbished from double-glazed windows, new doors, | 0:44:35 | 0:44:41 | |
interior and exterior. | 0:44:41 | 0:44:43 | |
We've had it plastered right through, electrics upgraded, new bathroom suite, new kitchen. | 0:44:43 | 0:44:49 | |
Externally, we've done the drainpipes, the fascias. Almost like a new build. | 0:44:49 | 0:44:55 | |
John, Dawn and their team of tradespeople have been busy. | 0:44:57 | 0:45:01 | |
I have to agree with John. It does look like a new-build, inside and out. | 0:45:01 | 0:45:08 | |
Outside, of course, was totally dug up. We block paved a large drive | 0:45:08 | 0:45:12 | |
to give people access to the property. It's permit parking only. | 0:45:12 | 0:45:17 | |
And then we've lawned it as an easy way of maintaining. | 0:45:17 | 0:45:21 | |
So it really went quite smoothly. | 0:45:21 | 0:45:24 | |
One problem with prefabs is the cold. | 0:45:24 | 0:45:28 | |
Due to the lack of insulation on the walls, they can be chilly. | 0:45:28 | 0:45:33 | |
To prevent this and ensure the bungalow is warm and snug, | 0:45:33 | 0:45:37 | |
the couple have added specialist insulation panels to all the walls and insulated the loft. | 0:45:37 | 0:45:43 | |
It keeps the place cosy while also helping to keep heating costs down. | 0:45:43 | 0:45:47 | |
Dawn has also added a feature that will either warm your heart or send a chill down your spine. | 0:45:48 | 0:45:55 | |
MUSICAL DOORBELL | 0:45:57 | 0:45:59 | |
Yes, that's my doorbell ringing. | 0:46:03 | 0:46:05 | |
I love my doorbell. I am slightly deaf at home and I don't hear my own, | 0:46:05 | 0:46:12 | |
but that's got so many tunes on. If you get tired of one, you can change it. It's a lot of fun. | 0:46:12 | 0:46:19 | |
Go on, Dawn. Give us another. | 0:46:19 | 0:46:22 | |
PLAYS "Ode To Joy" | 0:46:22 | 0:46:24 | |
Well, I think that's quite enough. | 0:46:28 | 0:46:31 | |
Oh, all right, just one more. | 0:46:31 | 0:46:33 | |
NEW TUNE PLAYS | 0:46:33 | 0:46:35 | |
# I'm thinking about my doorbell | 0:46:37 | 0:46:39 | |
# When you gonna ring it? When you gonna ring it? # | 0:46:39 | 0:46:43 | |
I think it's best we move swiftly on. Surely a pair of accountants like Dawn and John | 0:46:43 | 0:46:49 | |
have kept a firm grasp of the budget? They had differing views on what the spend should be. | 0:46:49 | 0:46:55 | |
Dawn reckoned 20 grand while John thought 30 might be necessary. | 0:46:55 | 0:46:59 | |
So who was right? | 0:46:59 | 0:47:01 | |
Well, we paid £60,000 for the house at auction and with the legal costs and the auctioneer's costs, | 0:47:01 | 0:47:08 | |
that came to slightly over £61,000. | 0:47:08 | 0:47:11 | |
So we must have spent... around something just under £24,000. | 0:47:11 | 0:47:17 | |
That gives Dawn and John a total outlay of around £85,000. | 0:47:17 | 0:47:22 | |
They had hoped to have this bungalow ready to let in six months, but it has actually taken seven. | 0:47:22 | 0:47:28 | |
However, they can be justifiably proud of what they've achieved. | 0:47:28 | 0:47:32 | |
It will make somebody a lovely home and that's what we like. | 0:47:34 | 0:47:38 | |
We hope they stay a long while. | 0:47:38 | 0:47:41 | |
We try to provide good properties in a good state | 0:47:41 | 0:47:45 | |
because we both feel if we don't, the tenant won't look after them. | 0:47:45 | 0:47:50 | |
And we probably won't get such good tenants. | 0:47:50 | 0:47:54 | |
With the work John and Dawn have done on this prefab, I think it'll be standing in another 60 years'. | 0:47:56 | 0:48:03 | |
We invited two local property experts to give us their opinions on John and Dawn's renovation. | 0:48:04 | 0:48:11 | |
Anyone looking at this property will be impressed | 0:48:11 | 0:48:15 | |
by the fact it's all new, clean, tidy. New bathroom, new kitchen, | 0:48:15 | 0:48:21 | |
carpets, decorations. It's like a brand-new property inside. | 0:48:21 | 0:48:26 | |
Impressions are good. It's been redecorated, new flooring, new kitchen and bathroom. | 0:48:26 | 0:48:32 | |
I like the way the owner has block-paved the driveway, giving it extra car parking space. | 0:48:32 | 0:48:38 | |
It seems the experts are impressed. Bearing in mind John and Dawn's total outlay of £85,000, | 0:48:38 | 0:48:44 | |
how much do they believe this property could achieve if sold? | 0:48:44 | 0:48:49 | |
I would say if this went on the market it would have an asking price | 0:48:49 | 0:48:54 | |
of around £90,000. It might be a shade more than that. | 0:48:54 | 0:49:00 | |
If I was putting this on the market for sale, I'd go for £85,000. | 0:49:00 | 0:49:05 | |
Those valuations would mean the couple breaking even or, at most, making five grand, | 0:49:05 | 0:49:10 | |
minus the usual tax and expenses. What do they think of that? | 0:49:10 | 0:49:15 | |
I wouldn't sell it for less than £100,000. | 0:49:16 | 0:49:20 | |
I don't know why they've gone so low on the valuation. It's certainly far less than our expectation | 0:49:20 | 0:49:27 | |
and our expectations were not high. | 0:49:27 | 0:49:29 | |
Disappointment with the sale valuations, but this bungalow is destined for the rental market. | 0:49:29 | 0:49:35 | |
In terms of rental value, I think these would rent out at about £475 a calendar month. | 0:49:37 | 0:49:43 | |
There's not a lot of floor space, but it's a popular location. | 0:49:43 | 0:49:48 | |
If they want to rent the property out, I would suggest a rental per calendar month of £495. | 0:49:48 | 0:49:54 | |
That top rate of £495 per calendar month, if achieved, would give the couple | 0:49:54 | 0:50:01 | |
a respectable yield of around 7%. | 0:50:01 | 0:50:04 | |
I'm sorry, but the agents... No, I'm sorry. I don't think they're right. | 0:50:04 | 0:50:11 | |
And in this case John and Dawn were right. The property is now rented out for £550 per calendar month, | 0:50:14 | 0:50:21 | |
so they have completed this, their 16th property renovation, successfully. | 0:50:21 | 0:50:27 | |
It doesn't sound as though they'll stop there. | 0:50:27 | 0:50:31 | |
We get enjoyment out of it. It's not a chore. | 0:50:31 | 0:50:35 | |
I think that's very important when you do these sort of things. | 0:50:35 | 0:50:40 | |
Welcome back to Dover in Kent. | 0:50:43 | 0:50:47 | |
# And time is running out for me | 0:50:47 | 0:50:50 | |
# I wish that he would hurry down from Dover... # | 0:50:50 | 0:50:54 | |
This historic Grade 2-listed building was built around 1850. | 0:50:54 | 0:50:59 | |
# From Dover... # | 0:50:59 | 0:51:01 | |
I loved the sweep of this fantastic terrace and so do Hugh and his wife Judith. | 0:51:01 | 0:51:07 | |
They already owned two flats in this part of the terrace, which they let. | 0:51:07 | 0:51:12 | |
Then they bought this ground-floor flat for £60,000 at auction. | 0:51:14 | 0:51:18 | |
It needed a total refurbishment. | 0:51:18 | 0:51:21 | |
How will you turn it around? | 0:51:21 | 0:51:23 | |
We need new kitchen, new bathroom, the electrics need upgraded. | 0:51:23 | 0:51:28 | |
Beyond that, we won't do anything more than bring it up to date. | 0:51:28 | 0:51:33 | |
Judith and Hugh were going to keep this flat as their holiday home. | 0:51:33 | 0:51:37 | |
They planned to spend about £10,000 redoing the inside. | 0:51:37 | 0:51:42 | |
An added expense they faced was refurbishing the exterior, | 0:51:42 | 0:51:45 | |
which each flat had to contribute to and they now owned three in the building. | 0:51:45 | 0:51:52 | |
It's now 9½ months later and the outside of this Grade 2-listed building is being restored | 0:51:52 | 0:51:59 | |
to its former glory. Good news | 0:51:59 | 0:52:02 | |
because the inside of Hugh and Judith's flat has been refurbished. | 0:52:02 | 0:52:06 | |
The grand sitting room has been fully restored. | 0:52:11 | 0:52:15 | |
And there's been a similar transformation in the kitchen. | 0:52:22 | 0:52:26 | |
Well, really, pretty much everything has changed in here. | 0:52:29 | 0:52:33 | |
If you remember, this corner was very ugly, a lot of pipework. | 0:52:33 | 0:52:38 | |
We got our carpenter to make a cupboard. That's hidden everything away very nicely. | 0:52:38 | 0:52:44 | |
There was also units all the way round, so we decided just to put units along the one wall. | 0:52:44 | 0:52:50 | |
We've managed to keep this space in the corner as an eating area. Our major discovery was the fireplace. | 0:52:50 | 0:52:57 | |
We thought it was wood, but we realised it was marble. We uncovered that. | 0:52:57 | 0:53:02 | |
It took a lot of work. We've ordered a shelf to go on top | 0:53:02 | 0:53:07 | |
to make it look more authentic again. I'm looking forward to seeing that when it's finished. | 0:53:07 | 0:53:13 | |
I really love the high ceilings in this flat. What a throwback to a more elegant era. | 0:53:13 | 0:53:18 | |
I'm very impressed by the effect the couple have created in the bathroom. The black and white | 0:53:18 | 0:53:25 | |
mimics the old Victorian tiles which would have been used originally. | 0:53:25 | 0:53:29 | |
Like the sitting room, the bedroom at the back now looks straight out onto the garden without obstruction. | 0:53:29 | 0:53:36 | |
As you might remember, this was all enclosed. | 0:53:36 | 0:53:41 | |
There was a rotten, grotty conservatory here, | 0:53:41 | 0:53:46 | |
but the first job we did, I came down on a Sunday and started removing it, | 0:53:46 | 0:53:51 | |
much to the delight of our neighbours as well. | 0:53:51 | 0:53:56 | |
There's still some more work to do. I'll paint the railings black and the woodwork needs another coat, | 0:53:56 | 0:54:02 | |
but it's really improved. We're trying to get this property back to how it should look, really. | 0:54:02 | 0:54:08 | |
It's proved to be the perfect time for them to add this flat to the two they already owned here. | 0:54:08 | 0:54:15 | |
Inside and out, this Grade 2 property is going up in the world. | 0:54:15 | 0:54:20 | |
A huge amount has been done to the outside. We've had a new roof | 0:54:20 | 0:54:25 | |
and they're working on the pointing. Hopefully, from having one of the worst houses in the road, | 0:54:25 | 0:54:31 | |
it'll be one of the better ones. | 0:54:31 | 0:54:34 | |
Each flat had to contribute about £7,500 to top up the shortfall in the sinking fund | 0:54:34 | 0:54:41 | |
that's used for the exterior maintenance. As they own three, | 0:54:41 | 0:54:46 | |
that's a whopping £22,500 towards the outside repair work. | 0:54:46 | 0:54:50 | |
Back inside, the couple started off doing a lot of the decorating themselves, | 0:54:50 | 0:54:57 | |
removing the woodchip paper and nicotine-stained walls. | 0:54:57 | 0:55:01 | |
-The worst thing from my point of view was when we realised we'd got to plaster the whole flat. -Yes. | 0:55:01 | 0:55:07 | |
We really hoped to get away without paying to plaster the whole flat. | 0:55:07 | 0:55:12 | |
Every time we started doing another bit, we realised more needed doing. | 0:55:12 | 0:55:17 | |
I'm just wondering if, in the end, that ambitious £10,000 budget was rather over-optimistic, | 0:55:17 | 0:55:23 | |
-as I'd feared. -We've definitely gone over. | 0:55:23 | 0:55:27 | |
I think we're probably at around 13, but we'll probably end up, when everything is added up, | 0:55:27 | 0:55:33 | |
having spent a little more than that. | 0:55:33 | 0:55:36 | |
Based on their current spend of £13,000, plus the 60 grand they paid at auction | 0:55:36 | 0:55:43 | |
and the £7,500 for the exterior, | 0:55:43 | 0:55:45 | |
that brings their total outlay here to £80,500. | 0:55:45 | 0:55:52 | |
Time to hear what two local estate agents think of the refurbished flat, starting with the one | 0:55:52 | 0:55:58 | |
who viewed it before. | 0:55:58 | 0:56:01 | |
I think the changes here are fantastic. They've transformed it. | 0:56:01 | 0:56:05 | |
'They've finished it really nicely. They've tried to maintain' | 0:56:05 | 0:56:09 | |
some of the features of the property, but modernise it at the same time and they've achieved a good job. | 0:56:09 | 0:56:16 | |
Although Judith and Hugh are going to keep this flat for themselves, | 0:56:16 | 0:56:20 | |
they have two others in the block which they let out. I'm sure they'd be interested in rental potential. | 0:56:20 | 0:56:26 | |
I think if this were to be let, the rental value of it now would be about £550 per calendar month. | 0:56:27 | 0:56:34 | |
This flat on the rental market would command a rent of about £500 per calendar month. | 0:56:34 | 0:56:40 | |
-The rental value sounds about right from what we know of the area. -Yes. | 0:56:40 | 0:56:45 | |
So pretty pleased with that. | 0:56:45 | 0:56:48 | |
Bearing in mind their £80,500 investment here, how much could it sell on for now? | 0:56:49 | 0:56:56 | |
I think if you were going to sell the flat, you would think about marketing it | 0:56:56 | 0:57:01 | |
for about 95 and settle for anything between £85,000 and £95,000. | 0:57:01 | 0:57:05 | |
If 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. | 0:57:05 | 0:57:12 | |
That range of valuations from £85,000 to £100,000 would produce a profit of between £4,500 | 0:57:12 | 0:57:19 | |
and £19,500. | 0:57:19 | 0:57:22 | |
I'm actually pretty pleased with those agents' valuations. | 0:57:22 | 0:57:26 | |
We were slightly worried that we had spent more than we should have done, | 0:57:26 | 0:57:30 | |
-but that sounds perfectly reasonable. -It does. | 0:57:30 | 0:57:33 | |
They always planned to keep this for their holiday use, but are they tempted to let or even sell? | 0:57:33 | 0:57:41 | |
No, we're definitely using it ourselves. We've put all this effort in and want the benefit ourselves. | 0:57:41 | 0:57:47 | |
-Sitting out on the balcony in the evening, or eating breakfast, will be very enjoyable. -Yeah. | 0:57:47 | 0:57:54 | |
Whether you're a complete novice or a property professional, | 0:57:59 | 0:58:03 | |
-there are always lessons to be learned about buying property. -So make sure you join us next time. | 0:58:03 | 0:58:09 | |
-We'll see you then. -Goodbye. | 0:58:09 | 0:58:12 | |
Subtitles by Red Bee Media Ltd | 0:58:32 | 0:58:35 |