Episode 45 Homes Under the Hammer


Episode 45

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Transcript


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-Welcome to the show.

-They say every house tells a story. We've found that to be true!

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There are always tales to tell and stories to uncover when you buy your home under the hammer.

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Properties sold at auction are sold on a "buyer beware" basis.

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It's up to YOU to check out the property thoroughly before you bid.

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Or you could be in for some nasty surprises. Let's see if today's bidders were lucky.

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'I've seen it all on Homes Under The Hammer, but this property in London is rather special.'

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It's already setting itself apart.

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'In Derby I give a masterclass in how to enter a room in style.'

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OK, elegant entry number one.

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'And the decor in this flat in Dover is dated, but...'

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All is forgiven. Wow!

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Look at this room!

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All these properties were sold at auction and we'll find out who bought them and what they paid

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when they went under the hammer.

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'I'm in southwest London in Battersea.

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'The area has undergone significant regeneration in recent years and now has more than its share

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'of smart bars and bistros. It's a pretty cool place to live and more affordable than Chelsea or Fulham,

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'so if you want cachet for less cash, this could be the place for you.'

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So a good area and the property sounds good, too.

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In fact, the auction catalogue says it would give a potential purchaser an ideal opportunity

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to carry out works to their own specification. Anyway, it's a two-bedroom flat over two floors

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in this lovely Victorian building. Let's take a look inside.

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This leasehold flat is split-level on the first and second floor.

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The guide price was £340,000 plus. That's a pretty penny for a two-bedroom flat.

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So through your own door up the first flight of stairs to this little level

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where you've got your kitchen. It needs a bit of work, but it's a good-size space. Separate loo there.

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Bit of a crack there. That needs investigating.

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Up another set of stairs. I love all these different levels. It gives it a nice feel.

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That continues in here. Even in this stairwell, lots and lots of space.

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Light thrown down, natural light, from that skylight up there.

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First of your two bedrooms on that side and then through into an absolute gem.

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This is your front living room area, this big bay window again casting lots of light into here.

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Look at the high ceilings. I'd like to see a fireplace there.

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Apart from that, this flat is already setting itself apart.

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'There are two bedrooms in this flat - one on the first floor next to the living room

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'and the second is on the top. Space like this in London is at a premium.

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'Although the dingy decor doesn't do the flat any justice,

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'if you gave it a spruce up and let the light flood in, that would brighten it no end.

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'But that's for the future.'

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Just check out the bedroom here. Something's niggling me a bit.

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Sure enough, in the corner here we are seeing a few signs of plaster coming off the walls

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and a crack there.

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'Are the cracks a cause for concern? I'm not sure. What I am sure about

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'is that I would get a structural survey done on this property before I bid on it at auction.'

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I really do like all the stairs and different levels in this property

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and there might actually be scope to even do more. Bathroom there, no loo. That's easily rectified.

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And then through into this room, which is the second bedroom.

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There is loft space above here and above other parts of the property.

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Maybe you could think about doing something really clever,

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maybe putting in even more floors perhaps, Dormers here and there.

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While I'm up here, half-decent room as it is, although...

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carrying on the crack theme, so to speak, that's not good.

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A few more over here as well. Is it a big issue? They're not huge.

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My guess is it's some kind of historical settlement. In fact, looking out of the window here,

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super-sleuth Roberts might have found a few reasons why that is.

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Just across there, a relatively recent - compared to the age of this house - development.

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This whole part of London was quite heavily bombed in the war,

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so it may well be that that part of around here was subject to bomb damage

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and the vibrations or whatever have caused a few problems in here.

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It's worth getting it checked out. On the face of it, not too much of a problem, though.

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'But cracks aside, this flat has a great deal of potential in a variety of configurations.

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'Option one, renovate it in the present layout. Option two, create a downstairs bathroom

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'and add a loo to the upstairs bathroom,

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'or option three, expand into the loft to add that all-important value-added square footage.

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'With all those possibilities to consider, it's time to hear from a local estate agent

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'about this two-bed flat guided at £340,000 plus.'

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It's very tired.

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Needs a lot of decoration. There are a few cracks to look at,

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but great property, great location and really good space.

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'Bearing in mind the great potential the flat has, what are the possible returns here?'

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If this property was renovated to a good standard, I'd value this property at £490,000-£500,000.

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If the purchasers decided to turn to two bedrooms, two bathrooms,

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they might achieve about the £525,000 mark.

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If the purchasers decided to do the full extension, go into the loft, I think they could achieve

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anything from £565,000-£585,000.

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'If you could afford it, a loft extension would provide a good rental return.

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'The estate agents believe £2,000-£2,200 per calendar month is achievable.

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'With a second bathroom added, he believes the property could achieve £1,700 per calendar month.

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'But what about keeping it in its current layout?'

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It would achieve £1,500 a month.

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It's a flat by name, but I've seen smaller houses. I love this place and its potential for expansion.

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A few issues with those cracks, but a great one to go for. Let's see who agreed.

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Start at 300. It's not going to go below three. 300 down here.

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305?

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305. 310.

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315. 320.

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There were two parties keenly contesting this lot. We rejoin the auction when it reached £422,000.

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422. 423?

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422, back to you.

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423 elsewhere? If not, 422 on my right.

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Anyone else? 422.

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First time, second time.

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Third and last time. All done? Sold. 422. Well done.

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Those successful bidders were Liz and her son William.

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William, a software engineer, was away on business, so it was Liz and her daughter Rose

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who met me back at their new £422,000 purchase to talk about their plans.

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Rose is a freelance journalist, while Liz is a homemaker.

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Could this flat be made into a home?

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-Rose, Liz, lovely to meet you both. Congratulations.

-Thank you.

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-Tell me why you wanted to buy this.

-Me and my brother are looking for somewhere to live.

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We know the area very well and live round the corner. It's to make our own little home.

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-You're in rented accommodation?

-We're just renting in a flat around the corner

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and wanted to do something with our money, so buying was the best option.

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And share the costs?

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Yeah, exactly. My brother's buying the majority of it. I needed him to get anything at all!

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It's tough, certainly, around the London area for starting out and buying your first one.

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-Yeah. All my friends are quite surprised that I can even get on the property ladder.

-Wow.

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It needs to be two people with independent incomes to get anywhere. Luckily, I have that with my brother.

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'They're also lucky to be getting support from Mum and their dad, Geoff, who provided funds

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'to buy the flat in the first place. Rose and William are taking a mortgage out to repay their parents,

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'but another source of financial help proved invaluable.'

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My deposit came mainly from our granddad, when he died. Our inheritance money has gone into here.

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-I'm sure he'd be happy about that.

-Yeah, I think he would.

-So what are you going to do with it?

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Just do it up in a homer. Nothing too major.

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We'll make the bathroom bigger and turn the upstairs bathroom next to the master into an en suite.

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Then, other than that, just obviously paint all the walls, put in the furniture,

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-things like that.

-Right.

-But we have to have it all replastered and rewired.

-Yeah!

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-There's a lot of initial work.

-And renovate all the floorboards.

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-Yeah.

-There's quite a lot of work to do before you get the paintbrush out.

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I'll ask the question again. Mum, what are you planning to do to the place?

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'It's just as well that mum Liz is aware that the flat does need a full renovation

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'from replastering to rewiring. It was sold by Wandsworth Council,

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'subject to the decent home standard, which stipulates that it has to be habitable within 6 months.

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'The current thinking is that dad Geoff will be doing the renovation, with tradesmen when necessary.'

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Do we have to talk about the cracks? Big cracks...and things?

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-Big cracks. There is a big crack I noticed, but...

-Where's that, Mum? Where's that crack?

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-Just down there, isn't it?

-I don't know anything about it!

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Well, there was a survey done and that would have highlighted the major issues.

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All they've said is it needs extensive plastering. I presume it's a superficial crack.

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-Or historical.

-Yeah. And there's two houses either side. I can't see how the house can fall down.

-Right.

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So what's the budget for the work?

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-The budget is like...30 grand?

-We're thinking £30,000.

-30?

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-Wow. What are you going to do?

-That's exactly what I thought!

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When that was what they came up with.

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-I don't know what we'll do with that. That's what I said to you.

-You're hysterical.

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-Yeah.

-Two bathrooms to be done, there's a whole new fitted kitchen.

-All the rewiring.

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-The kitchen can cost several thousand.

-Yeah.

-And with all the appliances in it,

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-I don't think there'll be much change from 30.

-OK, that's good.

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'Rose's relaxed approach to the work is perhaps not what a standard renovator's would be.'

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# I've never known a girl like you before... #

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'And the timescale is relaxed, too, allowing six months before the siblings move in.'

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Once you've done this project, are you going to take your considerable expertise to other projects?

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I don't think so! I don't think we have any expertise as property developers

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or interior designers, but this project, as soon as it's made into our home

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and it's done to our spec, then we'll just call it quits.

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Lots of things to look forward to finding out when we come back.

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Yeah, great. It'll be done and under budget and on time.

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-Good. Lovely to meet you.

-And you.

-Take care.

-Thank you.

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Well, Rose possibly not as well prepared for this as she might be,

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but with the help of Mum, Dad and brother, I'm sure she will be fine

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and the property itself could make a great home.

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Find out how it turns out later in the show.

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I'm in Littleover, a large suburb about three miles outside Derby city centre,

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to visit a property with a guide price of £48,000.

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I'm here to see a two-bedroomed bungalow situated in a popular location

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and actually nicely located on this little private green area. And this is it.

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Now you've probably realised it's not standard.

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Not standard at all. Not standard construction for a start.

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No, it's a prefab.

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Hmm. Could be a problem.

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After World War Two, Winston Churchill ordered the construction of prefabs like these

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to meet a predicted shortfall in housing when the troops returned.

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They were made to be put up quickly using pre-made panels built in factories.

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They provided all mod cons, but were meant to be temporary

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and had a planned life expectancy of up to just 10 years.

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But over 60 years later, the prefabs are as popular as ever.

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OK, elegant entry number one(!)

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What are we going to find? Well, interesting.

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Layout works. Living room area there, kitchen off that way.

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Two bedrooms and a bathroom there. What you have to get your head round is this really is non-standard.

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You've got some storage areas here, like a cupboard.

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It's metal. Walls - are they nice and solid?

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No, they're not. Stud partitions.

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You almost feel like it's like a caravan that's got some dividing walls in it.

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So I think that's going to require a bit of specialist work.

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But, on the plus side, the layout is simple, but it works.

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Of course, the property is very dated. Many fixtures and fittings don't seem to have changed

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since it was built in the 1940s.

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This bungalow is a fascinating slice of architectural history.

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The back wall of the bathroom is one prefabricated metal piece with built-in shelves.

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The thing about prefabricated houses is that they've always been enormously popular.

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I've been told they were earmarked for demolition, but local residents objected. Sadly, however,

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they're less popular with lenders so getting a mortgage can be tricky.

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So I'm mulling this over and I'm coming round to thinking

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that renovating this might not be as big a job as I thought.

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You haven't got brick and concrete, well, in the walls, but not exposed.

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I think that means it could be that to do this up might not be too big a job.

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There's certainly things to rip out, like these metal cupboards, but that lounge is great.

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And then you come through here into the kitchen.

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Fantastic.

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Look at this colour. It's a little princess's palace.

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Pink everywhere. On the floor, the cupboards, the walls. I mean, it has a certain charm,

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but I think possibly a bit of your renovation budget is required in here.

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Yes, one of the main issues with post-war prefabs like this is the lack of insulation,

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as there are no cavity walls here. You can remedy that with a brick skin on the exterior walls,

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which also makes them more acceptable to mortgage companies, but that can be a costly venture.

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Taking into account that relatively low £48,000 guide price,

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-we asked the auctioneer to tell us about these popular prefabs.

-Why are they still here?

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Because people like them, there's a good market for them

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and I don't think the council have any plans to remove them. People go for them.

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So once it's renovated, what rental could you achieve for this two-bedroom bungalow?

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If this was renovated, it would have a rental value of about £450-£500 per calendar month.

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How about its resale value?

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When renovated, assuming that it wasn't bricked round, this would have a value of £80,000-£85,000.

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If it was bricked round, you might increase that by another £10,000, so up to £95,000.

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Well, it was only meant to last a few years, but this property is still going strong.

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It's going to take a bit of effort and money to turn it from its current post-war state

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to something more modern, but these places are endearingly popular,

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so I'm sure it was a hard-fought lot when it went under the hammer.

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May I say 50,000 to start me? 50? 48?

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£48,000?

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45? 45 is my starter, thank you.

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45 is the opening bid. 46 I'm looking for. 46 I've got.

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At 46,000. 47.

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47. 48.

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At 48,000. 49?

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49 is bid. At 49. At 50.

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51 at the back. At 51. 52? £52,000.

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53. 54 for you, sir? At £53,000.

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54. 54. 55.

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56. 57.

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57.

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58?

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At 57,000. 58.

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59. 60?

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At £59,000. 60? I'll take 500 if it will help you.

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59,500.

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60,000.

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At 60. 500?

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At £60,000.

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Once, twice...

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Third time. Sold at 60,000. Thank you.

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That final bid of £60,000 was made by John. He attended the auction with his wife, Dawn.

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The couple have been buying and renting properties as a sideline to their day jobs for 20 years.

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Some people are just workaholics!

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I met them at the bungalow to find out more.

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John, Dawn, great to meet you both. Congratulations.

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-Thank you.

-Interesting property.

-Different.

-Yeah. Tell me why you wanted to buy it.

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We invest in properties for a pension fund, really. We thought that was the best way to go.

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-Tell me how you got into it, Dawn.

-By chance.

-Really?

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Yes, we inherited property from parents,

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both times at a time when houses were at a very low value.

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So we decided that we would try letting and that's really where it snowballed.

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-And so this now provides, hopefully, a bit of financial security.

-It should do.

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-When we get to retiring age.

-We've not got round to retiring yet!

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-OK, well, that's good! What do you do when not doing this?

-We're both accountants.

-OK.

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One in industry and I'm in practice.

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I'm financial director at a scrap yard - motor vehicle dismantlers!

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We're not supposed to call them scrap yards, but everybody does.

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This will be Dawn and John's 16th property renovation.

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Frankly, it's been very rewarding.

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We've enjoyed it. We've had some super tenants.

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We've had the odd disaster, but everybody's had those!

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Getting the whole tenancy thing going puts a lot of people off,

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that fear of phone calls in the middle of the night, bad tenants not leaving, trashing the place.

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It happens. The sort of phone call you get is at seven in the morning.

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"My daughter got up in the night, put the bath on and the ceiling's come down in the kitchen."

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So?

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-At one time that was very concerning. Now it's insured, OK, let's deal with it.

-Right, good.

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-So why this particular property?

-We've already got one like this.

-Oh, right.

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At the other end of the estate. And it was very successful.

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-John's always had a yearning for these. He likes them.

-Successful how?

-Never any trouble letting it.

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# Then it's all just a little bit of history repeating... #

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So this very experienced property developing couple already have the refurbishment

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of a similar post-war prefab under their belts.

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Let's hope this one holds no surprises for them.

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So, tell me, what's the plan?

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-Start with the windows.

-Right.

-uPVC windows, doors, new gutterings.

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It'll keep it watertight and that'll do that side of it. Internally,

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we'll replace the bathroom, replace the kitchen.

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The walls themselves, we want to consider applying a plasterboard with insulation behind it

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-to try to give a bit more insulation to the structure.

-On the inside.

-Inside.

-Right.

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Decorate it and hopefully find a nice tenant.

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What about the budget?

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-Dawn said about £20,000. I thought about 30.

-Wow.

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-You're accountants...

-Yes, but it's a peculiar building.

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-We may find something we don't expect.

-You're allowing contingencies.

-Well, that,

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-and I don't want to skimp it. I'll regret that afterwards if I do.

-And it'll all take how long?

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This is dependant on the people that do it and the weather.

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-We're saying if it's finished by March, that'll be fine.

-Six months.

0:23:530:23:57

Six months. But we'll see.

0:23:570:24:00

-Congratulations. Good luck with it.

-Thank you.

-We look forward to seeing it.

-Come see us again.

-We will.

0:24:000:24:07

Well, John and Dawn have purchased plenty of properties in the past,

0:24:090:24:14

but will this post-war prefab cause them any problems?

0:24:140:24:19

You can find out later in the show.

0:24:190:24:23

'Coming up: I'm bowled over by this terraced flat in Dover.'

0:24:240:24:29

It really is fantastic. I am very excited.

0:24:290:24:33

'Back in Derby, it's not alarm bells that have been ringing.'

0:24:340:24:38

MUSICAL BELL CHIMES

0:24:380:24:40

That's my doorbell ringing. I love my doorbell.

0:24:400:24:44

First, we find out how Rose is settling in to her new home in London.

0:24:450:24:51

I just love it. I love being in my flat.

0:24:510:24:55

We head back to Battersea in southwest London now

0:24:580:25:03

to see how Rose and her mum Liz got on with renovating this two-bedroom split-level flat.

0:25:030:25:09

Along with her brother, William, Rose had bought it for £422,000.

0:25:090:25:14

They had some help from the Bank of Mum and Dad and the plan was to make this into their new home,

0:25:140:25:20

but in all the excitement Rose missed one or two major issues, like the cracks in the walls.

0:25:200:25:28

-Talk about the big cracks.

-There is a big crack I noticed, yes, but...

0:25:280:25:35

-Where's that, Mum? Where is it?

-Just down there.

0:25:350:25:40

I don't know anything about it!

0:25:400:25:42

I wasn't too worried about Rose as mum Liz was switched on and dad Geoff was on hand to help

0:25:420:25:50

with the DIY. They had six months and £30,000 to turn this sad-looking flat into a home.

0:25:500:25:56

Bang on six months later, we're back.

0:25:560:26:00

Straight away we can see the living room has been given a new lease of life.

0:26:000:26:06

The walls have been decorated in white, contrasting with the warm tones of the hardwood flooring.

0:26:060:26:12

The first-floor bedroom is now a beautifully stylish and colourful kitchen, again with wood flooring

0:26:120:26:19

which continues throughout the flat.

0:26:190:26:21

The old kitchen has now become a bedroom. In fact, it's Rose's.

0:26:220:26:27

And if you're thinking it looks smaller, you're right. The partition wall for the toilet was moved

0:26:270:26:34

to create a larger shower room and toilet.

0:26:340:26:38

On the top level, William's bedroom has been renovated and decorated in clean, simple lines.

0:26:410:26:47

A new doorway has been created to give the room its own en suite shower room

0:26:470:26:53

and the original landing door is now blocked.

0:26:530:26:57

The work on the flat is now all finished, so for Rose and William, a software engineer,

0:26:570:27:03

this is now their new home.

0:27:030:27:06

I just love it. I love being in my flat

0:27:070:27:11

and I love how everything is designed for me and my brother to live here.

0:27:110:27:16

The flat is, now it's been renovated, absolutely fantastic. In particular, the kitchen.

0:27:160:27:23

Everything is new and clean and exactly how I want it. I love living here.

0:27:230:27:29

It's easy to see why. While the finish is to a good standard and the decor is simple,

0:27:320:27:38

for Rose and William one of the joys of finally having their own property

0:27:380:27:43

is the freedom to have their own personal touches.

0:27:430:27:48

Basically, he likes things that are new and very clean.

0:27:480:27:52

And I like things that are old and have character and you get them in an auction or flea market.

0:27:520:27:58

I think most of it ended up the way Rose wanted it to be.

0:27:580:28:03

Ultimately, I think there's a difference in priorities.

0:28:030:28:07

I think Rose cared more. I just wanted somewhere to live.

0:28:070:28:12

That difference in taste was also reflected in the approach to the renovation,

0:28:120:28:17

-which did lead to differences of opinion.

-There have been a few arguments along the way.

0:28:170:28:23

Not so much while we're living here, but along the way, refurbishing it.

0:28:230:28:29

Luckily for the pair, the renovation itself wasn't a tense affair.

0:28:300:28:35

Stripping the flat down to the bare brick and giving it a complete overhaul presented no major problems

0:28:350:28:41

but the floorboards, which were rotten, did need replacing. As for those cracks...

0:28:410:28:47

The cracks, there was no problem with them. They weren't anything structural or to be worried about,

0:28:470:28:54

so that's all fine.

0:28:540:28:57

I'm glad Rose finally got up to speed with that little problem, but while she travelled from Kent

0:28:570:29:03

to keep an eye on the renovation, William and Rose didn't get their hands dirty

0:29:030:29:09

because it was another family member who was more hands on here.

0:29:090:29:13

Dad has been really heavily involved, but not in the manual labour sense.

0:29:130:29:18

But he's been project managing everything. Although I got him and my mum to do all the wallpapering.

0:29:180:29:24

They're a good wallpapering team.

0:29:240:29:27

Mum Liz and dad Geoff have also been crucial in helping to buy this flat

0:29:270:29:33

and get the siblings onto the property ladder, though Rose and William are now paying them back.

0:29:330:29:40

But when it came to finances, did they spend all of that £30,000 budget?

0:29:400:29:44

All in all, the house and the renovations came to, roughly, £500,000.

0:29:440:29:52

That breaks down into 422 at auction,

0:29:520:29:55

plus roughly £27,000 of fees

0:29:550:30:00

and then an additional £50,000 of renovation.

0:30:000:30:06

Well, I thought that £30,000 was pretty decent, but £50,000?!

0:30:060:30:11

That's a definite overspend by any reckoning,

0:30:110:30:14

but it is primarily a home, not so much of an investment.

0:30:140:30:18

Time to hear the thoughts of two local property experts. We start with one who viewed the flat before.

0:30:200:30:28

The changes they've made are really positive. Original two bedrooms with a disjointed bathroom,

0:30:280:30:34

wrong location for the kitchen. They've made it into two bedrooms, two bathrooms. Really positive.

0:30:340:30:41

The flat's brilliant. Great for the demographic who would buy it.

0:30:410:30:46

The fixtures and fittings are brilliant, loved the wood floors and the kept the old windows.

0:30:460:30:51

The total spend on this renovation is £499,000.

0:30:510:30:56

So could they make a profit if they decided to sell?

0:30:560:31:01

I think this could sell at £575,000.

0:31:010:31:04

I would put it on the market for £575,000.

0:31:040:31:07

With that valuation, the pair could make a £76,000 profit, minus any tax and other expenses.

0:31:070:31:14

That's a much nicer flat than we could have afforded without going through this process. Excellent.

0:31:160:31:22

It's a great price, but we're not interested in selling. We'll stay here, but it's amazing to hear.

0:31:220:31:29

If they ever decide to let the flat, they could get a monthly rental income

0:31:290:31:34

of £1,700-£2,100 per calendar month.

0:31:340:31:37

That could mean an annual yield of 4%-5%.

0:31:370:31:42

But for now, after waiting so long for their own place, Rose and William are happy to be home owners

0:31:430:31:50

and to enjoy all the benefits that come with that.

0:31:500:31:54

It really feels like a proper home and it's amazing just seeing everything coming together

0:31:540:32:01

and everything exactly as we want it everywhere.

0:32:010:32:04

So it's been really good.

0:32:040:32:07

Dover was once a military town, so the closure of the barracks in 2007 was a contributing factor

0:32:120:32:19

in the town's economic decline.

0:32:190:32:22

Now, however, there is investment planned for the town centre

0:32:220:32:27

and with a fast train link to the capital, Dover could be marching to a brighter tune in the future.

0:32:270:32:34

The property I'm here to see is part of this grand terrace,

0:32:340:32:38

built around 1850 to house officers stationed in the town.

0:32:380:32:43

The whole terrace is Grade 2 listed due to its dominating position overlooking Dover,

0:32:430:32:49

but the bit I'm interested in is the ground floor one-bedroom flat

0:32:490:32:53

which had a guide price of £60,000.

0:32:530:32:56

The property does have an imposing facade and location,

0:32:590:33:03

but this would not pass out on parade without closer inspection.

0:33:030:33:08

There are some tell-tale signs that the building needs significant work,

0:33:080:33:13

but the communal hall hints at its former glory.

0:33:130:33:17

Oh, very dated.

0:33:170:33:20

But all is forgiven.

0:33:210:33:23

Wow! Look at this room!

0:33:230:33:27

This is everything I love, love, love, love.

0:33:270:33:32

Wasn't expecting this.

0:33:320:33:34

Absolutely stunning. And huge. The proportions are enormous, amazing. It feels so right.

0:33:340:33:42

I mean, look at this stunning piece of marble here. Absolutely gorge.

0:33:420:33:48

I'm not sure about this wallpaper - we'll have to get rid of that - but look at the cornicing.

0:33:480:33:54

Beautiful. The ceiling rose. I think it's lots of bits of fruit cobbled together - pineapples,

0:33:540:34:00

pears, some apples. Really beautiful.

0:34:000:34:04

Over here you've got these shutters. The thing that strikes me is it's all in such good condition.

0:34:040:34:10

Look. Deep skirting boards, just how I love them.

0:34:100:34:14

It really is fantastic. I am very excited.

0:34:140:34:17

What a find! A truly magnificent room.

0:34:190:34:24

This is just the kind of historic property that I love to see being returned to its former glory.

0:34:240:34:30

# Making me glorious... #

0:34:300:34:35

Part of the living room has been separated off to create a bedroom.

0:34:370:34:41

It's not huge, but it also has these lovely, original shutters.

0:34:410:34:45

The kitchen's at the front of this flat. It's also got gloriously high ceilings.

0:34:450:34:52

It'll need completely stripping out, but this is a big room that I'd love to redesign.

0:34:520:34:59

I reckon you could fit a table and chairs in, no problem.

0:34:590:35:03

The bathroom - same story there.

0:35:030:35:06

Last, but not least, there's this strange little lean-to at the back, leading out onto...

0:35:060:35:12

Well, you just wait.

0:35:120:35:14

Oh!

0:35:140:35:16

Wow! Just look at that sweeping terrace. It really is quite breathtaking here.

0:35:160:35:23

Interestingly, they've covered this little area in, this veranda.

0:35:230:35:28

I'd like to get rid of all that and emulate the neighbours. It would be so lovely to sit outside.

0:35:280:35:34

That's fabulous. You get outside space, a share of the garden.

0:35:340:35:39

I'm not sure which part, but it's wonderful to be here in Dover, have a garden,

0:35:390:35:44

have a wonderful flat. This little place is something special.

0:35:440:35:49

To sit in this garden with that Victorian terrace for a view would be a delight.

0:35:490:35:55

# Magic in the air... #

0:35:550:35:58

And I'm told that in the winter, when the trees lose their leaves,

0:35:580:36:03

you've got a decent view of Dover as well.

0:36:030:36:06

This flat would make a very comfortable and enjoyable place to live once you make it your own.

0:36:060:36:12

But before that there's something to bear in mind.

0:36:120:36:16

The state of the flat itself isn't great, but you can sort that out.

0:36:160:36:21

It's controllable and dealable with.

0:36:210:36:23

The condition of the building and communal areas is more complicated.

0:36:230:36:28

If I was taking this place on, I'd be thoroughly researching why the building

0:36:280:36:34

is not being maintained, why nobody is taking responsibility for it,

0:36:340:36:39

whether there's an annual service charge set up for maintenance and a sinking fund for major works.

0:36:390:36:45

It's all about protecting your own investment and making sure any works won't cost you an arm and a leg

0:36:450:36:52

at the same time.

0:36:520:36:54

Allowing a Grade 2-listed building to fall into disrepair could prove an expensive business,

0:36:570:37:03

especially if there's no sinking fund in place to cover repairs.

0:37:030:37:08

So although that £60,000 guide price could seem a bargain, there might be a catch. You know the drill.

0:37:080:37:15

Always check the legal pack.

0:37:150:37:18

We asked a local estate agent to tell us what he thinks of it.

0:37:190:37:24

These buildings are old

0:37:240:37:26

and always require continual maintenance. You're very close to the sea and coast here.

0:37:260:37:32

You have a lot of salt in the atmosphere. They need to be protected.

0:37:320:37:37

The flat went to auction guided at £60,000,

0:37:370:37:42

so how much could it be worth after a refurbishment?

0:37:420:37:46

Once improved, this flat will probably be £80,000-£100,000.

0:37:460:37:50

And the rental potential of the flat once done up?

0:37:500:37:54

The rental value, in good order, is going to be £450-£500 per calendar month.

0:37:540:38:01

This is a little piece of Dover history which has character and masses of charm.

0:38:010:38:07

It's not without its issues, but for someone it will be well worth the hassle.

0:38:070:38:13

Let's see who that was.

0:38:130:38:15

Lot 16 is the ground-floor flat in Dover.

0:38:150:38:19

What may I say? £55,000 anywhere? 55. Thank you very much.

0:38:190:38:25

£55,000 I have.

0:38:250:38:27

At £55,000 I am bid. 56 I have.

0:38:270:38:31

And 58?

0:38:310:38:33

And eight I have. At 58. And 60? And 60. And 62?

0:38:330:38:38

No? At £60,000 I have. Anybody else can join in here.

0:38:380:38:43

Well, at £60,000, then. Hammer's up at £60,000 for the first time.

0:38:430:38:49

60,000 for the second time.

0:38:490:38:51

60,000 for the third and final time. At £60,000, are you all done?

0:38:510:38:56

Sold at 60,000.

0:38:560:38:59

That very happy bidder, who paid the exact guide price of £60,000 is Hugh.

0:38:590:39:06

He and his wife Judith live in Market Harborough.

0:39:060:39:10

He works in a warehouse and Judith's an optician.

0:39:100:39:15

# Cos these rose-coloured glasses... #

0:39:150:39:22

'I met up with them both at the property to find out why they'd eyed up this fabulous flat.'

0:39:220:39:28

Judith and Hugh, I don't always get quite this excited about flats, but I love this place!

0:39:280:39:35

-Oh, lovely.

-Why did you want to buy it?

0:39:350:39:39

-We own the top two flats already.

-In this building?

-In this building, yes.

0:39:390:39:44

And this one came up for sale so for numerous reasons we thought we'd have a look round

0:39:440:39:50

-and went for it.

-Why do you want to own another one in the building? What is it that you love so much?

0:39:500:39:57

I think this terrace is one of the finer points of Dover.

0:39:570:40:01

If you drive in to Dover, you'll see the castle and then this terrace.

0:40:010:40:06

It's such a magnificent building, I just wanted to have part of it. It's lovely.

0:40:060:40:11

Having the top two flats is wonderful, with views to the sea, but this has access to the garden.

0:40:110:40:18

What you don't expect is when you walk out the back and you see that beautiful sweep.

0:40:180:40:24

-It just looks stunning.

-Years ago, you could actually see the structure of the terrace much better

0:40:240:40:32

-from the town. The trees have obviously grown.

-You know Dover well?

-I grew up here.

0:40:320:40:38

I've been a long time away, but I came back and fell in love with the place.

0:40:380:40:43

# We are happy people

0:40:430:40:45

# We are happy people... #

0:40:460:40:49

Well, what better place to purchase property than one that makes you happy every time you're there?

0:40:490:40:56

Now that Judith and Hugh own flats at both the top and the bottom,

0:40:560:41:01

I wonder what their plans are to lift the spirits of this ground-floor flat.

0:41:010:41:07

-How are you going to turn this place around?

-We thought about moving the kitchen into the bedroom

0:41:070:41:14

and swapping them over, but that's probably too expensive. We need new kitchen, new bathroom.

0:41:140:41:20

The electrics have got to be upgraded and the central heating is poor. We need to sort that out.

0:41:200:41:28

Beyond that, I don't think we'll do more than bring it up to date.

0:41:280:41:32

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.

0:41:320:41:39

However, the good news is that there is a sinking fund in place for the five flats.

0:41:410:41:47

The couple had inside knowledge of that as they already owned the two top-floor flats.

0:41:470:41:54

What are your immediate plans for the flat?

0:41:540:41:57

-Once the work are done, we hope to keep it for ourselves as a holiday home.

-Really?

0:41:570:42:04

We were originally thinking of having the top-floor flat, but we decided to rent it out

0:42:040:42:11

and get some money back. But now, this time, we're going to get some pleasure out of this.

0:42:110:42:16

-Judith, when you told me about that, your whole face lit up. You really do love it here.

-Yes.

0:42:160:42:23

-Both of you.

-Yeah, we do.

-I am so excited to see it.

0:42:230:42:27

-Congratulations, guys. Well done, thank you.

-Thank you.

-Thank you.

0:42:270:42:33

I think this is a stunning flat. It's very, very special and there shouldn't be any nasty surprises

0:42:330:42:41

because they know the place inside out, warts and all. Still, I hope the works don't escalate

0:42:410:42:47

and costs don't spiral out of control. You can find out how it goes later on in the show.

0:42:470:42:55

Transforming a property from a worn-out shell can be very rewarding and profitable.

0:42:550:43:01

But did everything go smoothly for our buyers today? Let's go back and find out.

0:43:010:43:07

It's time to return to the popular suburb of Derby, Littleover,

0:43:070:43:12

where I viewed this two-bedroom bungalow. It's a post-WWII prefab.

0:43:120:43:17

They were originally only expected to have a 10-year lifespan, but over 60 years later

0:43:170:43:24

the prefabs in this area are proving as popular as ever.

0:43:240:43:28

The property was purchased at auction by husband and wife John and Dawn for £60,000.

0:43:330:43:39

They have an extensive rental portfolio which they hope will provide income for their retirement,

0:43:390:43:45

whenever that might be!

0:43:450:43:48

-So this now provides financial security for your future?

-Should do.

0:43:490:43:54

-When we get to retiring age.

-We've just not got around to retiring yet!

0:43:540:44:00

After 60-plus years, this post-war prefab is still standing

0:44:000:44:06

and just seven months after we first met the couple, we're back.

0:44:060:44:10

# I'm still standing better than I ever did

0:44:100:44:14

# Looking like a true survivor And feeling like a little kid

0:44:140:44:19

# I'm still standing after all this time

0:44:200:44:25

# Looking like a true survivor And feeling like a little kid

0:44:250:44:30

# I'm still standing

0:44:300:44:32

# Yeah, yeah, yeah... #

0:44:320:44:35

The place has been totally refurbished from double-glazed windows, new doors,

0:44:350:44:41

interior and exterior.

0:44:410:44:43

We've had it plastered right through, electrics upgraded, new bathroom suite, new kitchen.

0:44:430:44:49

Externally, we've done the drainpipes, the fascias. Almost like a new build.

0:44:490:44:55

John, Dawn and their team of tradespeople have been busy.

0:44:570:45:01

I have to agree with John. It does look like a new-build, inside and out.

0:45:010:45:08

Outside, of course, was totally dug up. We block paved a large drive

0:45:080:45:12

to give people access to the property. It's permit parking only.

0:45:120:45:17

And then we've lawned it as an easy way of maintaining.

0:45:170:45:21

So it really went quite smoothly.

0:45:210:45:24

One problem with prefabs is the cold.

0:45:240:45:28

Due to the lack of insulation on the walls, they can be chilly.

0:45:280:45:33

To prevent this and ensure the bungalow is warm and snug,

0:45:330:45:37

the couple have added specialist insulation panels to all the walls and insulated the loft.

0:45:370:45:43

It keeps the place cosy while also helping to keep heating costs down.

0:45:430:45:47

Dawn has also added a feature that will either warm your heart or send a chill down your spine.

0:45:480:45:55

MUSICAL DOORBELL

0:45:570:45:59

Yes, that's my doorbell ringing.

0:46:030:46:05

I love my doorbell. I am slightly deaf at home and I don't hear my own,

0:46:050:46:12

but that's got so many tunes on. If you get tired of one, you can change it. It's a lot of fun.

0:46:120:46:19

Go on, Dawn. Give us another.

0:46:190:46:22

PLAYS "Ode To Joy"

0:46:220:46:24

Well, I think that's quite enough.

0:46:280:46:31

Oh, all right, just one more.

0:46:310:46:33

NEW TUNE PLAYS

0:46:330:46:35

# I'm thinking about my doorbell

0:46:370:46:39

# When you gonna ring it? When you gonna ring it? #

0:46:390:46:43

I think it's best we move swiftly on. Surely a pair of accountants like Dawn and John

0:46:430:46:49

have kept a firm grasp of the budget? They had differing views on what the spend should be.

0:46:490:46:55

Dawn reckoned 20 grand while John thought 30 might be necessary.

0:46:550:46:59

So who was right?

0:46:590:47:01

Well, we paid £60,000 for the house at auction and with the legal costs and the auctioneer's costs,

0:47:010:47:08

that came to slightly over £61,000.

0:47:080:47:11

So we must have spent... around something just under £24,000.

0:47:110:47:17

That gives Dawn and John a total outlay of around £85,000.

0:47:170:47:22

They had hoped to have this bungalow ready to let in six months, but it has actually taken seven.

0:47:220:47:28

However, they can be justifiably proud of what they've achieved.

0:47:280:47:32

It will make somebody a lovely home and that's what we like.

0:47:340:47:38

We hope they stay a long while.

0:47:380:47:41

We try to provide good properties in a good state

0:47:410:47:45

because we both feel if we don't, the tenant won't look after them.

0:47:450:47:50

And we probably won't get such good tenants.

0:47:500:47:54

With the work John and Dawn have done on this prefab, I think it'll be standing in another 60 years'.

0:47:560:48:03

We invited two local property experts to give us their opinions on John and Dawn's renovation.

0:48:040:48:11

Anyone looking at this property will be impressed

0:48:110:48:15

by the fact it's all new, clean, tidy. New bathroom, new kitchen,

0:48:150:48:21

carpets, decorations. It's like a brand-new property inside.

0:48:210:48:26

Impressions are good. It's been redecorated, new flooring, new kitchen and bathroom.

0:48:260:48:32

I like the way the owner has block-paved the driveway, giving it extra car parking space.

0:48:320:48:38

It seems the experts are impressed. Bearing in mind John and Dawn's total outlay of £85,000,

0:48:380:48:44

how much do they believe this property could achieve if sold?

0:48:440:48:49

I would say if this went on the market it would have an asking price

0:48:490:48:54

of around £90,000. It might be a shade more than that.

0:48:540:49:00

If I was putting this on the market for sale, I'd go for £85,000.

0:49:000:49:05

Those valuations would mean the couple breaking even or, at most, making five grand,

0:49:050:49:10

minus the usual tax and expenses. What do they think of that?

0:49:100:49:15

I wouldn't sell it for less than £100,000.

0:49:160:49:20

I don't know why they've gone so low on the valuation. It's certainly far less than our expectation

0:49:200:49:27

and our expectations were not high.

0:49:270:49:29

Disappointment with the sale valuations, but this bungalow is destined for the rental market.

0:49:290:49:35

In terms of rental value, I think these would rent out at about £475 a calendar month.

0:49:370:49:43

There's not a lot of floor space, but it's a popular location.

0:49:430:49:48

If they want to rent the property out, I would suggest a rental per calendar month of £495.

0:49:480:49:54

That top rate of £495 per calendar month, if achieved, would give the couple

0:49:540:50:01

a respectable yield of around 7%.

0:50:010:50:04

I'm sorry, but the agents... No, I'm sorry. I don't think they're right.

0:50:040:50:11

And in this case John and Dawn were right. The property is now rented out for £550 per calendar month,

0:50:140:50:21

so they have completed this, their 16th property renovation, successfully.

0:50:210:50:27

It doesn't sound as though they'll stop there.

0:50:270:50:31

We get enjoyment out of it. It's not a chore.

0:50:310:50:35

I think that's very important when you do these sort of things.

0:50:350:50:40

Welcome back to Dover in Kent.

0:50:430:50:47

# And time is running out for me

0:50:470:50:50

# I wish that he would hurry down from Dover... #

0:50:500:50:54

This historic Grade 2-listed building was built around 1850.

0:50:540:50:59

# From Dover... #

0:50:590:51:01

I loved the sweep of this fantastic terrace and so do Hugh and his wife Judith.

0:51:010:51:07

They already owned two flats in this part of the terrace, which they let.

0:51:070:51:12

Then they bought this ground-floor flat for £60,000 at auction.

0:51:140:51:18

It needed a total refurbishment.

0:51:180:51:21

How will you turn it around?

0:51:210:51:23

We need new kitchen, new bathroom, the electrics need upgraded.

0:51:230:51:28

Beyond that, we won't do anything more than bring it up to date.

0:51:280:51:33

Judith and Hugh were going to keep this flat as their holiday home.

0:51:330:51:37

They planned to spend about £10,000 redoing the inside.

0:51:370:51:42

An added expense they faced was refurbishing the exterior,

0:51:420:51:45

which each flat had to contribute to and they now owned three in the building.

0:51:450:51:52

It's now 9½ months later and the outside of this Grade 2-listed building is being restored

0:51:520:51:59

to its former glory. Good news

0:51:590:52:02

because the inside of Hugh and Judith's flat has been refurbished.

0:52:020:52:06

The grand sitting room has been fully restored.

0:52:110:52:15

And there's been a similar transformation in the kitchen.

0:52:220:52:26

Well, really, pretty much everything has changed in here.

0:52:290:52:33

If you remember, this corner was very ugly, a lot of pipework.

0:52:330:52:38

We got our carpenter to make a cupboard. That's hidden everything away very nicely.

0:52:380:52:44

There was also units all the way round, so we decided just to put units along the one wall.

0:52:440:52:50

We've managed to keep this space in the corner as an eating area. Our major discovery was the fireplace.

0:52:500:52:57

We thought it was wood, but we realised it was marble. We uncovered that.

0:52:570:53:02

It took a lot of work. We've ordered a shelf to go on top

0:53:020:53:07

to make it look more authentic again. I'm looking forward to seeing that when it's finished.

0:53:070:53:13

I really love the high ceilings in this flat. What a throwback to a more elegant era.

0:53:130:53:18

I'm very impressed by the effect the couple have created in the bathroom. The black and white

0:53:180:53:25

mimics the old Victorian tiles which would have been used originally.

0:53:250:53:29

Like the sitting room, the bedroom at the back now looks straight out onto the garden without obstruction.

0:53:290:53:36

As you might remember, this was all enclosed.

0:53:360:53:41

There was a rotten, grotty conservatory here,

0:53:410:53:46

but the first job we did, I came down on a Sunday and started removing it,

0:53:460:53:51

much to the delight of our neighbours as well.

0:53:510:53:56

There's still some more work to do. I'll paint the railings black and the woodwork needs another coat,

0:53:560:54:02

but it's really improved. We're trying to get this property back to how it should look, really.

0:54:020:54:08

It's proved to be the perfect time for them to add this flat to the two they already owned here.

0:54:080:54:15

Inside and out, this Grade 2 property is going up in the world.

0:54:150:54:20

A huge amount has been done to the outside. We've had a new roof

0:54:200:54:25

and they're working on the pointing. Hopefully, from having one of the worst houses in the road,

0:54:250:54:31

it'll be one of the better ones.

0:54:310:54:34

Each flat had to contribute about £7,500 to top up the shortfall in the sinking fund

0:54:340:54:41

that's used for the exterior maintenance. As they own three,

0:54:410:54:46

that's a whopping £22,500 towards the outside repair work.

0:54:460:54:50

Back inside, the couple started off doing a lot of the decorating themselves,

0:54:500:54:57

removing the woodchip paper and nicotine-stained walls.

0:54:570:55:01

-The worst thing from my point of view was when we realised we'd got to plaster the whole flat.

-Yes.

0:55:010:55:07

We really hoped to get away without paying to plaster the whole flat.

0:55:070:55:12

Every time we started doing another bit, we realised more needed doing.

0:55:120:55:17

I'm just wondering if, in the end, that ambitious £10,000 budget was rather over-optimistic,

0:55:170:55:23

-as I'd feared.

-We've definitely gone over.

0:55:230:55:27

I think we're probably at around 13, but we'll probably end up, when everything is added up,

0:55:270:55:33

having spent a little more than that.

0:55:330:55:36

Based on their current spend of £13,000, plus the 60 grand they paid at auction

0:55:360:55:43

and the £7,500 for the exterior,

0:55:430:55:45

that brings their total outlay here to £80,500.

0:55:450:55:52

Time to hear what two local estate agents think of the refurbished flat, starting with the one

0:55:520:55:58

who viewed it before.

0:55:580:56:01

I think the changes here are fantastic. They've transformed it.

0:56:010:56:05

'They've finished it really nicely. They've tried to maintain'

0:56:050:56:09

some of the features of the property, but modernise it at the same time and they've achieved a good job.

0:56:090:56:16

Although Judith and Hugh are going to keep this flat for themselves,

0:56:160:56:20

they have two others in the block which they let out. I'm sure they'd be interested in rental potential.

0:56:200:56:26

I think if this were to be let, the rental value of it now would be about £550 per calendar month.

0:56:270:56:34

This flat on the rental market would command a rent of about £500 per calendar month.

0:56:340:56:40

-The rental value sounds about right from what we know of the area.

-Yes.

0:56:400:56:45

So pretty pleased with that.

0:56:450:56:48

Bearing in mind their £80,500 investment here, how much could it sell on for now?

0:56:490:56:56

I think if you were going to sell the flat, you would think about marketing it

0:56:560:57:01

for about 95 and settle for anything between £85,000 and £95,000.

0:57:010:57:05

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.

0:57:050:57:12

That range of valuations from £85,000 to £100,000 would produce a profit of between £4,500

0:57:120:57:19

and £19,500.

0:57:190:57:22

I'm actually pretty pleased with those agents' valuations.

0:57:220:57:26

We were slightly worried that we had spent more than we should have done,

0:57:260:57:30

-but that sounds perfectly reasonable.

-It does.

0:57:300:57:33

They always planned to keep this for their holiday use, but are they tempted to let or even sell?

0:57:330:57:41

No, we're definitely using it ourselves. We've put all this effort in and want the benefit ourselves.

0:57:410:57:47

-Sitting out on the balcony in the evening, or eating breakfast, will be very enjoyable.

-Yeah.

0:57:470:57:54

Whether you're a complete novice or a property professional,

0:57:590:58:03

-there are always lessons to be learned about buying property.

-So make sure you join us next time.

0:58:030:58:09

-We'll see you then.

-Goodbye.

0:58:090:58:12

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