0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:06Now, property prices are on the up in certain parts of the country,
0:00:06 > 0:00:09which is great news if you're a seller, but if you're a buyer,
0:00:09 > 0:00:12well, it makes getting a bargain a little harder.
0:00:12 > 0:00:14Oh, it certainly does, Martin.
0:00:14 > 0:00:17You've just got to do your homework to get the right area
0:00:17 > 0:00:18for the right price...
0:00:18 > 0:00:21Martin, where is a good place to search?
0:00:21 > 0:00:23At the auction.
0:00:49 > 0:00:53I'm in the village of Waunlwyd, South Wales, in Ebbw Vale.
0:00:53 > 0:00:56An area where the communities and culture
0:00:56 > 0:01:00grew around coal and other heavy industries, like steel.
0:01:00 > 0:01:02The bad news, economically speaking,
0:01:02 > 0:01:06was the closure of the steelworks in 2002.
0:01:07 > 0:01:11Well, this whole area was once badly blighted by pollution
0:01:11 > 0:01:14from the Ebbw Vale Steelworks nearby.
0:01:14 > 0:01:16But since the closure of those steelworks,
0:01:16 > 0:01:20the environment has generally got a lot more pleasant and,
0:01:20 > 0:01:24in terms of redevelopment, there's some very good things going on.
0:01:25 > 0:01:28A brand-new sports centre has been built,
0:01:28 > 0:01:31new housing and a new shopping centre.
0:01:31 > 0:01:35So, this could well be a place for a developer to keep an eye on.
0:01:35 > 0:01:38# Whoo whoo whoo Keep an eye
0:01:38 > 0:01:40# Keep an eye
0:01:40 > 0:01:42# On your close friend... #
0:01:43 > 0:01:47Well, on offer at auction, in a very pleasant location,
0:01:47 > 0:01:50was a three-bedroomed mid-terrace.
0:01:50 > 0:01:52This is it.
0:01:52 > 0:01:54The guide price, though,
0:01:54 > 0:01:57£18,000.
0:01:57 > 0:02:00That's not a lot.
0:02:00 > 0:02:01What's the catch?
0:02:01 > 0:02:05# You're as cheap as the perfume
0:02:05 > 0:02:07# That you wear... #
0:02:07 > 0:02:09Ah.
0:02:09 > 0:02:12Well, that's an interesting design style...
0:02:13 > 0:02:16- ..the building-site look. - HE LAUGHS
0:02:16 > 0:02:20Clearly it's a property that is partway through being renovated.
0:02:20 > 0:02:23Um, but it's odd to see things like these great piles of sand,
0:02:23 > 0:02:25and cement mixers.
0:02:25 > 0:02:29It's obviously a work in progress...
0:02:29 > 0:02:32One big, big, big room at the front here, though, which I actually like.
0:02:32 > 0:02:36It's got a really good feel to it, really open-plan with these stairs,
0:02:36 > 0:02:38probably relocated from where they were originally.
0:02:38 > 0:02:41At least somebody's started it in the right kind of way.
0:02:41 > 0:02:44You don't know how well the work's been done, but, yeah, I like...
0:02:44 > 0:02:47Well, actually, strangely enough, I like it.
0:02:49 > 0:02:55Hmm. That said, I'd like it a lot more if it had a bathroom...
0:02:55 > 0:02:57which it doesn't,
0:02:57 > 0:02:59and...a kitchen,
0:02:59 > 0:03:00which it also doesn't.
0:03:01 > 0:03:04Open sewer there, lovely.
0:03:04 > 0:03:05What does it matter?
0:03:05 > 0:03:09Well, you know, the whole house is being completely refurbished anyway.
0:03:09 > 0:03:12The fact it hasn't got a kitchen or a bathroom, though,
0:03:12 > 0:03:13means it's unmortgageable,
0:03:13 > 0:03:16which means you're going to have to fund this with cash
0:03:16 > 0:03:19and then, maybe, apply for a mortgage once the work's done. Er...
0:03:19 > 0:03:23At least it's a blank canvas on which you can do whatever you want.
0:03:23 > 0:03:25# Just be patient
0:03:26 > 0:03:28# I'm a work in progress... #
0:03:31 > 0:03:36So, upstairs and no surprises. Lots of work needed to finish things off.
0:03:36 > 0:03:38But, like downstairs, lots of space.
0:03:38 > 0:03:42A big double bedroom to the front, two slightly smaller bedrooms
0:03:42 > 0:03:46towards the back, but some nice design features.
0:03:46 > 0:03:48For instance, both of these rear bedrooms access
0:03:48 > 0:03:50this little flat-roofed area.
0:03:50 > 0:03:54Now, I don't know if you can sit on it or walk on it,
0:03:54 > 0:03:56but that would actually be quite pleasant because...
0:03:58 > 0:04:01..there's actually a really nice view across the garden
0:04:01 > 0:04:03and upwards to the hills.
0:04:03 > 0:04:05Perfect!
0:04:06 > 0:04:08Actually, you'd need to do a safety check on it
0:04:08 > 0:04:10and then it would be perfect.
0:04:10 > 0:04:13But there are some imperfections -
0:04:13 > 0:04:16you shouldn't be able to see your bedroom from the kitchen,
0:04:16 > 0:04:17for example.
0:04:17 > 0:04:21Let's ask along a local property expert for his thoughts.
0:04:23 > 0:04:25The market is difficult round here,
0:04:25 > 0:04:28so to try and separate this from the competition,
0:04:28 > 0:04:30putting it into the best standard possible
0:04:30 > 0:04:32will be beneficial for the developer.
0:04:32 > 0:04:34Bearing in mind that tough local market,
0:04:34 > 0:04:37what kind of resale value could you get once renovated?
0:04:39 > 0:04:43I think the property could be worth in the region of £75,000.
0:04:43 > 0:04:46And what could you get for lettings?
0:04:47 > 0:04:50If the property was rented as a three-bedroom, sort of,
0:04:50 > 0:04:52fully modernised, fully renovated property,
0:04:52 > 0:04:56it should achieve in the region of £425 per calendar month.
0:04:57 > 0:04:59Well, it's not often you find an auction property
0:04:59 > 0:05:02with a ready-made place to play with your toys.
0:05:02 > 0:05:04But that's certainly what you get here.
0:05:04 > 0:05:08What you also get, more seriously, is a bit of a project.
0:05:08 > 0:05:10Let's see who fancied it when it went under the hammer.
0:05:14 > 0:05:16Lot number 36.
0:05:16 > 0:05:18You'll have looked at it and made up your mind,
0:05:18 > 0:05:20lot of interest in this, guided at just £18,000.
0:05:20 > 0:05:24Notice there's a bit of a hush descended over the room.
0:05:24 > 0:05:26We actually have a proxy bid on this, so I'm going to just
0:05:26 > 0:05:29make my life easier by starting with the proxy bid at £20,000.
0:05:29 > 0:05:32At 20,000, now one, can I see from somebody?
0:05:32 > 0:05:3321, 22,
0:05:33 > 0:05:3523, 24,
0:05:35 > 0:05:3625, 26,
0:05:36 > 0:05:3727, 28,
0:05:37 > 0:05:3829, 30,
0:05:38 > 0:05:3931, 32,
0:05:39 > 0:05:4133, 34,
0:05:41 > 0:05:4235, 36,
0:05:42 > 0:05:4437, 38,
0:05:44 > 0:05:4539, 40,
0:05:45 > 0:05:4741, 42, 43...
0:05:47 > 0:05:51I'm going to say 45. 46?
0:05:51 > 0:05:5546. Right, then. Proxy bidder's out. £46,000?
0:05:55 > 0:05:5647 now to somebody?
0:05:56 > 0:05:59At 46, then, it's...with you, sir.
0:05:59 > 0:06:02That was short and sweet, wasn't it?
0:06:02 > 0:06:05If only they were all like that. At £46,000, then, for the first time.
0:06:06 > 0:06:09At £46,000 for the second time.
0:06:09 > 0:06:13Third and last time, at £46,000, there we go.
0:06:13 > 0:06:14Number 14, thank you very much.
0:06:14 > 0:06:17Wow! You don't see that every day at the auctions.
0:06:17 > 0:06:20And the buyer, Andy, certainly won't have seen that before,
0:06:20 > 0:06:23as this was his first ever auction.
0:06:23 > 0:06:28His successful bid of £46,000 got him his first project
0:06:28 > 0:06:30and I met up with him at the property,
0:06:30 > 0:06:32or should that be building site?
0:06:32 > 0:06:34- Andy, good to meet you.- Hello.
0:06:34 > 0:06:36- Congratulations.- Thanks.
0:06:36 > 0:06:40- So, tell me why you wanted to buy this place.- I... As an investment.
0:06:40 > 0:06:43- Er, to basically do up and sell on. - Right.
0:06:43 > 0:06:45Have you got expertise in that kind of thing?
0:06:45 > 0:06:49Um, I'm a bathroom and kitchen installer, um,
0:06:49 > 0:06:52so I do this sort of thing generally, but for somebody else.
0:06:52 > 0:06:55It's perfect, then, because it hasn't got a kitchen or a bathroom!
0:06:55 > 0:06:56No kitchen, no bathroom. Definitely not.
0:06:56 > 0:07:00So tell me the process. What are you going to do to make it liveable?
0:07:00 > 0:07:04Er, we have builders coming in...shortly.
0:07:04 > 0:07:10Um, we have to do some drainage, we have to repoint part of the outside,
0:07:10 > 0:07:11re-render the outside.
0:07:11 > 0:07:14Obviously, it's going to need a huge clean, decorate,
0:07:14 > 0:07:16there's still plastering to finish off.
0:07:16 > 0:07:19And then you've obviously got the flat roof area,
0:07:19 > 0:07:21which is accessed upstairs,
0:07:21 > 0:07:24that looks like it's been leaking, or something...
0:07:24 > 0:07:27- Yes, certainly. Yeah, absolutely. - What are your plans for that?
0:07:27 > 0:07:30Er, the builder's coming to have a look at that, basically,
0:07:30 > 0:07:32in a couple of hours' time...
0:07:32 > 0:07:35When he does have a look at that, I also want him to tell me
0:07:35 > 0:07:39if it's structural, if we can stand on it,
0:07:39 > 0:07:41because it does appear that they've made it
0:07:41 > 0:07:43as if you were going to have a balcony from there.
0:07:43 > 0:07:46- Yep.- With twin, sort of, patio doors going on to it.
0:07:46 > 0:07:50- Which could be quite pleasant.- So, hopefully, turn it into a balcony.
0:07:50 > 0:07:53'Andy will continue working on fitting kitchens and bathrooms,
0:07:53 > 0:07:55'while developing this house.
0:07:55 > 0:07:58'But he also has another reason for being here.'
0:08:00 > 0:08:02I am in South Wales quite often
0:08:02 > 0:08:05because I go kayaking around this area.
0:08:05 > 0:08:06Oh, right, is it good for kayaking?
0:08:06 > 0:08:09It is, a little bit further over, but, yes, it is good round here.
0:08:09 > 0:08:11'I reckon Andy is certainly NOT going to be
0:08:11 > 0:08:15'up a creek without a paddle with THIS property.
0:08:15 > 0:08:17'However, there is one major issue.'
0:08:18 > 0:08:20I'm in Letchworth, Hertfordshire.
0:08:20 > 0:08:22- Not local at all, then?- No, no.
0:08:22 > 0:08:24It did mean a very early start this morning.
0:08:24 > 0:08:28That must be a two, three, four hour, even, commute, is it?
0:08:28 > 0:08:31Er, three hours and a bit, three and a half.
0:08:31 > 0:08:33And how are you going to, sort of, manage that, then?
0:08:33 > 0:08:35Driving down, staying with friends
0:08:35 > 0:08:38and then... when this is vaguely liveable,
0:08:38 > 0:08:40I'll come in here, sleep upstairs,
0:08:40 > 0:08:43install things and paint, and stuff like that, at the same time.
0:08:43 > 0:08:45'Now I'm worried it's his car,
0:08:45 > 0:08:49'and not his kayak, he's going to be spending all his time in.
0:08:49 > 0:08:52'He's going to have to factor in added time and petrol costs
0:08:52 > 0:08:54'to the equation.
0:08:54 > 0:08:55'In my experience,
0:08:55 > 0:08:58'you want to spend more time renovating than accelerating.
0:08:58 > 0:09:02'Andy plans to sell this on and he has his eye on
0:09:02 > 0:09:06'a retail price of £90,000, based on a local sale.
0:09:06 > 0:09:09'So, how much does he plan to spend?'
0:09:10 > 0:09:1612 to 15 to do it up. If I can spend any less, obviously, I will.
0:09:16 > 0:09:18It's going to be very different when we return.
0:09:18 > 0:09:21- I hope so.- When will that be? How many months?
0:09:21 > 0:09:22Oh, there's a very good question.
0:09:22 > 0:09:26It depends on my workload back at home.
0:09:26 > 0:09:29So, two or three months or so.
0:09:29 > 0:09:32Um, it should be...
0:09:32 > 0:09:35easily done, but that's famous last words.
0:09:35 > 0:09:36- Well, congratulations.- Thank you.
0:09:36 > 0:09:38- Good luck with it.- Thanks a lot.
0:09:38 > 0:09:40- I look forward to seeing how you get on.- Cheers.
0:09:40 > 0:09:44Well, it seems that Andy has the perfect skills needed
0:09:44 > 0:09:46to sort out a place that would faze a lot of people.
0:09:46 > 0:09:48He's a kitchen and bathroom fitter,
0:09:48 > 0:09:51it doesn't have either of those, so, fantastic.
0:09:51 > 0:09:52The only challenge will be making sure
0:09:52 > 0:09:56he doesn't spend too much time in his kayak, locally,
0:09:56 > 0:09:58rather than sorting the house out.
0:09:58 > 0:10:01How will he get on? You can find out later in the show.
0:10:07 > 0:10:10Welcome to West Dulwich in Southeast London.
0:10:10 > 0:10:14The area is thriving with shops, bars and cafes,
0:10:14 > 0:10:17and is very popular with young professionals and families,
0:10:17 > 0:10:20thanks in no small part to the train station,
0:10:20 > 0:10:24which will get you to London Victoria in 14 minutes.
0:10:24 > 0:10:29Well, so far I AM feeling positive, because this...
0:10:29 > 0:10:32Well, it's a lovely residential road and West Dulwich's shops and cafes
0:10:32 > 0:10:35are only a five-minute walk away from here.
0:10:35 > 0:10:37But will that feeling continue?
0:10:37 > 0:10:40Well, I am here to see a one-bedroom flat
0:10:40 > 0:10:43and it had a guide price of £190,000.
0:10:43 > 0:10:46And it's in THIS lovely Victorian building.
0:10:46 > 0:10:47Looks great from the outside.
0:10:47 > 0:10:50It goes up one, two, three storeys.
0:10:50 > 0:10:53No, I'm not going all the way UP,
0:10:53 > 0:10:56I am going DOWN into the basement.
0:10:56 > 0:11:00Now, basement flats can be quite dark and dingy.
0:11:00 > 0:11:02Fingers crossed it's not too bad down there.
0:11:02 > 0:11:05# Get down, deeper and down
0:11:05 > 0:11:07# Down, down, deeper and down... #
0:11:07 > 0:11:10One positive is that the side entrance
0:11:10 > 0:11:12means you do have your own access to the property.
0:11:12 > 0:11:15But will that entrance just lead to a dark flat?
0:11:18 > 0:11:20Oh, wow!
0:11:22 > 0:11:24What is not to like?
0:11:24 > 0:11:25This is a big surprise.
0:11:25 > 0:11:28What you have to get right with a basement flat is lighting.
0:11:28 > 0:11:31It's so important that it's not dark and dingy,
0:11:31 > 0:11:34and it's a nice, light and bright space.
0:11:34 > 0:11:37This is almost like it's recently been renovated.
0:11:37 > 0:11:39You've got a fabulous bathroom through there.
0:11:39 > 0:11:42I mean, look at that! I fancy taking a shower in there myself
0:11:42 > 0:11:45and I rarely say that on Homes Under The Hammer.
0:11:45 > 0:11:46- And the kitchen! - SHE GASPS
0:11:46 > 0:11:48I'm going to investigate!
0:11:48 > 0:11:50Yeah, the kitchen looks great,
0:11:50 > 0:11:53with a modern boiler and very new appliances.
0:11:53 > 0:11:55The bedroom is a good size, too,
0:11:55 > 0:11:57with clean fitted carpets,
0:11:57 > 0:12:00and the lounge has a really nice feature fireplace
0:12:00 > 0:12:03and looks like it's been freshly painted.
0:12:03 > 0:12:05But what really brings the whole flat to life
0:12:05 > 0:12:08and stops it feeling like a classic basement flat
0:12:08 > 0:12:10is that there's a brilliant combination
0:12:10 > 0:12:14of big windows and good lighting.
0:12:14 > 0:12:18# Light up, light up
0:12:18 > 0:12:23# As if you have a choice... #
0:12:23 > 0:12:27Goodness, this feels like we've filmed it after rather than before.
0:12:27 > 0:12:29But I have noticed some worrying signs
0:12:29 > 0:12:31that could be a real issue for this flat.
0:12:31 > 0:12:34Come here. Just have a look down here.
0:12:34 > 0:12:37THAT is white mould caused by damp.
0:12:37 > 0:12:42All of that. And there are signs of it in all the rooms, everywhere.
0:12:42 > 0:12:45Now, I would employ a damp specialist straight away
0:12:45 > 0:12:47to assess the cause of the problem.
0:12:47 > 0:12:49It might not be too much to worry about,
0:12:49 > 0:12:53but, if it is, well, you might need to strip back the whole flat,
0:12:53 > 0:12:55the flooring, say goodbye to that nice kitchen,
0:12:55 > 0:12:57and that lovely bathroom.
0:12:57 > 0:13:02That could cost thousands and thousands and thousands of pounds.
0:13:08 > 0:13:10So I'm going to deliver some news
0:13:10 > 0:13:13that every London flat owner would like to hear.
0:13:13 > 0:13:15This property comes with a bit of garden!
0:13:15 > 0:13:19Now, there's 38 feet to be had of this lovely,
0:13:19 > 0:13:21well-kept, outside space area.
0:13:21 > 0:13:24So I think that's up to about here.
0:13:24 > 0:13:26So, great news if you'd like to have a barbecue,
0:13:26 > 0:13:28sit outside on a sunny day,
0:13:28 > 0:13:32I mean, really fantastic for a little London flat like this.
0:13:32 > 0:13:34As well as this outside space,
0:13:34 > 0:13:38there's a 99-year lease to go with it.
0:13:38 > 0:13:41That damp is the only downside of this basement flat,
0:13:41 > 0:13:43guided at 190,000.
0:13:44 > 0:13:47So, what does a local estate agent think?
0:13:47 > 0:13:50If this flat was to come back to the market in good condition
0:13:50 > 0:13:53throughout, I would expect this to achieve
0:13:53 > 0:13:55circa £325,000
0:13:55 > 0:13:57to £350,000.
0:13:57 > 0:14:01Wow! That's a lot of profit potential.
0:14:01 > 0:14:02And for rental?
0:14:02 > 0:14:05In good condition presented back to the market,
0:14:05 > 0:14:08I can see this flat achieving between £1,150 per calendar month
0:14:08 > 0:14:11to £1,250 per calendar month.
0:14:12 > 0:14:15No, it's not too dark and dingy in here
0:14:15 > 0:14:18and, on face value, it looks pretty good.
0:14:18 > 0:14:22But the damp issue could easily transform this
0:14:22 > 0:14:26from a straightforward project into a real money pit.
0:14:26 > 0:14:27Let's head to the auction
0:14:27 > 0:14:30and find out who was prepared to take this on.
0:14:31 > 0:14:33Basement flat is next.
0:14:33 > 0:14:36The self-contained, lower ground floor flat, this one.
0:14:36 > 0:14:39What shall we say for it? Will you start me at 200 for it?
0:14:39 > 0:14:41You will, thank you. Straight away, 200.
0:14:41 > 0:14:44202 now. 200 I have.
0:14:44 > 0:14:46202. 204?
0:14:46 > 0:14:47204. 206.
0:14:47 > 0:14:49208?
0:14:50 > 0:14:52208. 210?
0:14:52 > 0:14:55I'll take 210 from you, madam. Thank you. 212...?
0:14:55 > 0:14:59'This lot proved popular and that guide price of £190,000...
0:14:59 > 0:15:01'Huh, well, it became a distant memory.
0:15:01 > 0:15:05'We now rejoin the bidding at 272,000.'
0:15:05 > 0:15:08Yours, madam, at 272, at the moment.
0:15:08 > 0:15:09275 anywhere else?
0:15:09 > 0:15:11Against you, over here.
0:15:11 > 0:15:13Yours at 272.
0:15:13 > 0:15:15275, 278, 280.
0:15:17 > 0:15:18Are you sure?
0:15:18 > 0:15:20278 with the lady here for the first.
0:15:20 > 0:15:23278 for the second.
0:15:23 > 0:15:26Third and final time...
0:15:27 > 0:15:30Your flat, madam. 278,000. Your bidder number, please?
0:15:30 > 0:15:32Getting the property for £88,000
0:15:32 > 0:15:35over the guide price was Julia.
0:15:36 > 0:15:39This £278,000 purchase
0:15:39 > 0:15:42is the third property in her portfolio.
0:15:42 > 0:15:43She's a primary school teacher,
0:15:43 > 0:15:46so I'm hoping she's going to go to the top of the class
0:15:46 > 0:15:49with the research she's done on this flat.
0:15:50 > 0:15:53- Julia, congratulations. - Thank you very much.
0:15:53 > 0:15:54Lovely to meet you.
0:15:54 > 0:15:57Now, you look like a happy person that's bought a flat that they love!
0:15:57 > 0:15:58I'm so happy.
0:15:58 > 0:16:02I was expecting it to be really run down, damp.
0:16:02 > 0:16:05So, this one, I was just pleasantly surprised.
0:16:05 > 0:16:07I mean, that's the first thing that struck me.
0:16:07 > 0:16:11You walk through the door and it's like somebody's renovated,
0:16:11 > 0:16:14- decorated and made it look nice to sell.- Absolutely.
0:16:14 > 0:16:18Now, I am just going to backtrack a little bit, cos you said "damp".
0:16:18 > 0:16:21- Yeah, there's... - There is a damp issue here.
0:16:21 > 0:16:24Now, how do you feel about that and what do you know about damp?
0:16:24 > 0:16:25Not much.
0:16:25 > 0:16:28I'm just going to go out and find a damp specialist
0:16:28 > 0:16:31and, hopefully, he can come and do his magic,
0:16:31 > 0:16:33and fix the problem, I'm hoping!
0:16:33 > 0:16:35Oh, I love your positivity!
0:16:35 > 0:16:40You see, I'm thinking basement flat equals damp, equals...
0:16:40 > 0:16:42This is what I don't want to happen to you, that you have to
0:16:42 > 0:16:45bring everything up, i.e. pull your kitchen out,
0:16:45 > 0:16:47pull your bathroom out,
0:16:47 > 0:16:49everything that looks fabulous, all this flooring,
0:16:49 > 0:16:52- everything has to all come up... - It's possible.
0:16:52 > 0:16:54..and you then have to treat the damp.
0:16:54 > 0:16:56Now, that would be worst-case scenario for you.
0:16:57 > 0:17:00'Oh, Julia, I love your positivity,
0:17:00 > 0:17:02'but this could be a very expensive lesson.
0:17:02 > 0:17:06'However, once this flat is sorted, it will become brilliant.
0:17:06 > 0:17:10'But I think treating the damp could be a large and costly job.'
0:17:10 > 0:17:14So what sort of budget have you got for the work here?
0:17:14 > 0:17:16Well, I was hoping, when I first looked around,
0:17:16 > 0:17:19when I did the viewing, I thought,
0:17:19 > 0:17:22"Oh, it's only going to be a couple of grand, a bit of paint", you know.
0:17:22 > 0:17:25I could see a bit of damp but I thought, "It doesn't look too bad."
0:17:25 > 0:17:28So, I'm hoping it's just going to be a couple of grand.
0:17:28 > 0:17:30But I really don't know at this point.
0:17:30 > 0:17:32What's your timeframe for this?
0:17:32 > 0:17:34Well, I've got a big, fat mortgage on it,
0:17:34 > 0:17:37so I'm hoping to do the work as soon as possible,
0:17:37 > 0:17:40in the next two to three weeks, hopefully.
0:17:40 > 0:17:43- Possibly a month.- Mm-hm.
0:17:43 > 0:17:45I've got enough for a couple of mortgage payments.
0:17:45 > 0:17:47And then you're desperate to rent this flat out?
0:17:47 > 0:17:49Yeah, I need to, cos, you know,
0:17:49 > 0:17:53every month I've got to find that money, haven't I? So...
0:17:53 > 0:17:56So will you be doing any work to the flat in the short term?
0:17:56 > 0:17:59No, there's no point until they've sorted out the damp.
0:17:59 > 0:18:02Julia, Julia, Julia, I'm going to keep my fingers crossed for you.
0:18:02 > 0:18:05- Yeah, me too. - Will it be really bad damp
0:18:05 > 0:18:06or not so bad damp?
0:18:06 > 0:18:07We will find out.
0:18:07 > 0:18:08- Time will tell.- Thank you.
0:18:08 > 0:18:10Lovely to meet you today.
0:18:10 > 0:18:11Lovely to meet you, too.
0:18:11 > 0:18:12- Thank you.- Cheers.
0:18:12 > 0:18:17Unfortunately, I think Julia has taken on a little more work
0:18:17 > 0:18:22than she intended here and I really hope her spirits aren't DAMPENED
0:18:22 > 0:18:24when she gets to the bottom of this flat's issues.
0:18:24 > 0:18:27Join me later in the programme and you can find out
0:18:27 > 0:18:30if we can award Julia an A for effort
0:18:30 > 0:18:33when all her hard work has been done.
0:18:35 > 0:18:38Coming up - in Workington, it might have an ordinary layout,
0:18:38 > 0:18:41but is there a hidden problem?
0:18:41 > 0:18:43It also covers an extension of the next door neighbour's.
0:18:43 > 0:18:45Could be a bit of an issue.
0:18:46 > 0:18:50And, in London, did Julia fix all that hidden damp?
0:18:50 > 0:18:52The damp will come back and then some,
0:18:52 > 0:18:55which is basically what's happened in this flat.
0:19:00 > 0:19:03Ebbw Vale in Wales is where we return to now
0:19:03 > 0:19:05with its tranquil countryside.
0:19:05 > 0:19:09And, low down in the valley, I found a property that was low on price.
0:19:12 > 0:19:14The whole place was half-finished
0:19:14 > 0:19:17with building equipment everywhere and plenty of work to do.
0:19:17 > 0:19:21Absence of a kitchen and bathroom was no problem for Andy,
0:19:21 > 0:19:23who fitted them for a living.
0:19:23 > 0:19:26He paid £46,000 for the property
0:19:26 > 0:19:30and, while it was a big commute - over three hours from his home -
0:19:30 > 0:19:31he knew his way around.
0:19:32 > 0:19:34With a three-month timescale,
0:19:34 > 0:19:38Andy wanted to turn this place round sooner rather than later.
0:19:38 > 0:19:41So, two months later, is everything shipshape?
0:20:07 > 0:20:09From building site to pleasant sight,
0:20:09 > 0:20:12what has Andy been up to here?
0:20:12 > 0:20:16Somebody had started work on it. However, most of it wasn't any good.
0:20:16 > 0:20:19So far, what we've done is, um... stripped the whole place out,
0:20:19 > 0:20:21plastered, painted,
0:20:21 > 0:20:24new kitchen, new bathroom.
0:20:24 > 0:20:28I believe it's its first central heating system ever.
0:20:28 > 0:20:30And just generally smartened it up.
0:20:30 > 0:20:32Apart from not having any central heating,
0:20:32 > 0:20:35it was missing a kitchen and a bathroom.
0:20:35 > 0:20:37I'm glad to report that this property
0:20:37 > 0:20:40found the most appropriate owner ever,
0:20:40 > 0:20:43and it does have a nice, smart bathroom.
0:20:43 > 0:20:45Installed in what was previously an empty space,
0:20:45 > 0:20:49it turned out the plumbing presented some challenges.
0:20:49 > 0:20:52We couldn't find any drainage to start with.
0:20:52 > 0:20:55Fortunately, a builder moved some rubble
0:20:55 > 0:20:58in the bathroom area and found a soil pipe.
0:20:58 > 0:21:00So we've managed to connect onto that,
0:21:00 > 0:21:05extended it to upstairs and put a toilet and basin in there.
0:21:05 > 0:21:09That is a very clever solution to the downstairs bathroom conundrum.
0:21:09 > 0:21:12You don't have to toddle downstairs at night.
0:21:16 > 0:21:18So, this is the kitchen area,
0:21:18 > 0:21:22which in the auction particulars said, "Space for a kitchen".
0:21:22 > 0:21:23There was literally nothing here.
0:21:23 > 0:21:26There was no plumbing, there was nothing in the room.
0:21:26 > 0:21:28And I've installed a nice, new kitchen in this,
0:21:28 > 0:21:33which, hopefully, should be nice, because it's what I do for a living.
0:21:33 > 0:21:36A good job by Andy, I would say.
0:21:36 > 0:21:38And another good job is the balcony area.
0:21:40 > 0:21:43When I first viewed this place, I saw there were two doors
0:21:43 > 0:21:45leading out to the flat roof area.
0:21:45 > 0:21:46Maybe not quite as simple as we first thought -
0:21:46 > 0:21:48the flat roof was leaking quite badly.
0:21:48 > 0:21:50We've had it all resealed.
0:21:50 > 0:21:52So decking and a nice rail, a nice place to sit
0:21:52 > 0:21:55and have a sort of cup of coffee in the morning.
0:21:59 > 0:22:02Is Andy happy with his budget?
0:22:02 > 0:22:05I've come in at around 9,000.
0:22:05 > 0:22:09Um... If I carpet it, I will spend another thousand,
0:22:09 > 0:22:10so 10 in total.
0:22:10 > 0:22:14I've obviously saved money on a few areas like the wiring,
0:22:14 > 0:22:17and I do a lot of the work myself.
0:22:18 > 0:22:21Then it's time to put your feet up, Andy.
0:22:21 > 0:22:23The hard work now falls
0:22:23 > 0:22:26to two local estate agents.
0:22:27 > 0:22:29Bought for £46,000,
0:22:29 > 0:22:31and spending 9,000 here,
0:22:31 > 0:22:34Andy's total spend has been 55,000.
0:22:34 > 0:22:37So, what could it get in terms of resale?
0:22:37 > 0:22:42On the open market, I would put this property on for £90,000
0:22:42 > 0:22:46and I would expect it to achieve in the region of £85,000.
0:22:46 > 0:22:48I would place it on the market
0:22:48 > 0:22:53at £94,500.
0:22:53 > 0:22:56And I would expect it to realise
0:22:56 > 0:23:00around £90,000.
0:23:00 > 0:23:03That top estimate of £90,000
0:23:03 > 0:23:09would net Andy a very nice £35,000 pre-tax profit.
0:23:09 > 0:23:11Was that close to what he'd hoped for?
0:23:11 > 0:23:13It's kind of what I was expecting.
0:23:13 > 0:23:17After all this work, has Andy had a chance to take to the water?
0:23:17 > 0:23:21Sadly, this is in a great area for kayaking, there's been plenty of rain
0:23:21 > 0:23:24and I haven't been once since I've been here.
0:23:24 > 0:23:25I've been far too busy.
0:23:31 > 0:23:36To the west of Cumbria lies the industrial town of Workington.
0:23:36 > 0:23:39It has long been a producer of coal, steel and iron ore,
0:23:39 > 0:23:43and was famed for the manufacture of railway track.
0:23:43 > 0:23:46This black steel column in the town centre
0:23:46 > 0:23:48commemorates Workington Steel.
0:23:48 > 0:23:50# I was born in a small town... #
0:23:53 > 0:23:55Well, I'm also making tracks to see a local property
0:23:55 > 0:23:57guided at £25,000 plus.
0:23:57 > 0:24:02So let's see what you can get for that kind of money in these parts.
0:24:04 > 0:24:06Well, ten minutes' walk from the town centre,
0:24:06 > 0:24:09how about a two-bedroomed mid-terrace?
0:24:09 > 0:24:12Looks all right from the outside. Let's take a look.
0:24:15 > 0:24:18So what have we got? Um... A little entrance porch here,
0:24:18 > 0:24:21and then into your front sitting room.
0:24:21 > 0:24:24Fireplace has been removed, you want to put something nice back there.
0:24:24 > 0:24:26But it's not a bad space.
0:24:26 > 0:24:30Er, storage radiators, so no central heating,
0:24:30 > 0:24:32I would hazard a guess.
0:24:32 > 0:24:34Stairs up to your two bedrooms there
0:24:34 > 0:24:37and then through into your rear living area.
0:24:37 > 0:24:39Um, what do you do with this?
0:24:39 > 0:24:42Dining room? Change the kitchen round...?
0:24:42 > 0:24:44I don't know. But it's not a bad size space,
0:24:44 > 0:24:46little courtyard out the back.
0:24:46 > 0:24:49And then through into... I mean, this is, what do you think's next?
0:24:49 > 0:24:51What you think's next? Go on, guess.
0:24:51 > 0:24:54Yep, kitchen. You've seen properties like this a million times before
0:24:54 > 0:24:56on Homes Under The Hammer.
0:24:56 > 0:24:57It's a classic design,
0:24:57 > 0:25:00but is that because, in general, it works quite well?
0:25:00 > 0:25:03So through here, into this little kitchen area.
0:25:03 > 0:25:05It's a bit tight cos it's quite narrow.
0:25:05 > 0:25:08So, maybe some kind of extension, perhaps?
0:25:08 > 0:25:10Through there, though, is your bathroom.
0:25:10 > 0:25:12Again, a very classic layout.
0:25:12 > 0:25:14It's not ideal, but in these kinds of properties,
0:25:14 > 0:25:16it's almost to be expected.
0:25:16 > 0:25:19Um, as a starting point...
0:25:19 > 0:25:21it's fine.
0:25:29 > 0:25:31Upstairs there are two bedrooms,
0:25:31 > 0:25:33one to the front
0:25:33 > 0:25:35and one to the back.
0:25:35 > 0:25:37But before you ask, nope,
0:25:37 > 0:25:40there's definitely no room for a bathroom up here.
0:25:40 > 0:25:45Time to look out the back to see if there's any surprises in store.
0:25:49 > 0:25:52Well, this won't be a surprise to anyone living in a seaside town.
0:25:52 > 0:25:58# Why do birds suddenly appear... #
0:25:58 > 0:25:59GULLS CAW
0:25:59 > 0:26:03Now, the good news for gulls and the bad news for house owners
0:26:03 > 0:26:06is that once they've moved in, you can't evict them.
0:26:06 > 0:26:09Gulls, like all wild birds, are protected
0:26:09 > 0:26:13under the Wildlife And Countryside Act of 1981.
0:26:14 > 0:26:17Well, at the rear of the property, a tiny little courtyard
0:26:17 > 0:26:19leading onto this rear alleyway.
0:26:19 > 0:26:23That's quite good. It's always good to have that kind of access.
0:26:23 > 0:26:27But one thing which is slightly concerning is THAT. See that roof?
0:26:27 > 0:26:28That sloping roof there?
0:26:28 > 0:26:32Well, not only does it cover the kitchen of this property
0:26:32 > 0:26:35but it also covers an extension of the next door neighbour's.
0:26:35 > 0:26:38If you get on with the next door neighbours, that's fine.
0:26:38 > 0:26:42Um, otherwise... it could be a bit of an issue.
0:26:44 > 0:26:46Aside from the communal roof,
0:26:46 > 0:26:50this is all pretty standard fare for this part of the world.
0:26:50 > 0:26:53Let's see what an agent from the auction house who sold it
0:26:53 > 0:26:56can tell us about this terraced house,
0:26:56 > 0:26:58guided at £25,000 plus.
0:27:00 > 0:27:02If it's been done to a very high standard,
0:27:02 > 0:27:05the ceiling for this area is around £70,000.
0:27:05 > 0:27:09Given local sales recently, we would confidently expect to achieve
0:27:09 > 0:27:11a minimum of £65,000.
0:27:12 > 0:27:16And what kind of rental figure could the new owner expect?
0:27:18 > 0:27:20Rental is quite popular.
0:27:20 > 0:27:22However, the ceiling for the rent is quite limited.
0:27:22 > 0:27:26It could achieve quite easily £350 per calendar month.
0:27:26 > 0:27:28To put it onto the rental market,
0:27:28 > 0:27:30you don't really have to do that much to it.
0:27:30 > 0:27:32You could leave the heating the way it is,
0:27:32 > 0:27:34put a new kitchen and bathroom in,
0:27:34 > 0:27:37and it could be rentable fairly quickly at a relatively low budget.
0:27:37 > 0:27:40Well, a fairly simple one, this one.
0:27:40 > 0:27:44Almost a starter project to cut your teeth as a property developer on.
0:27:44 > 0:27:47Let's see who bought it when it went under the hammer.
0:27:49 > 0:27:51Two-bedroom mid-terraced house.
0:27:51 > 0:27:53Ideal investment.
0:27:53 > 0:27:5525 is your guide.
0:27:55 > 0:27:58Let's sell it in the room. 25, then.
0:27:58 > 0:28:00At £25,000...
0:28:00 > 0:28:0225 here.
0:28:02 > 0:28:04At 25, 26, new bidder.
0:28:04 > 0:28:0727, 28, 29, 30.
0:28:07 > 0:28:10One... You're out. With you at 30.
0:28:10 > 0:28:12At £30,000.
0:28:12 > 0:28:14At £30,000, are we done?
0:28:14 > 0:28:1731, 32,
0:28:17 > 0:28:2033, 34, 35,
0:28:20 > 0:28:2436, 37, 38 in the corner.
0:28:24 > 0:28:2639, sir?
0:28:26 > 0:28:2939 here? No. With you in...
0:28:29 > 0:28:33On my right, at £38,000. With you, sir.
0:28:33 > 0:28:35Against you and against you.
0:28:35 > 0:28:38At £38,000... 39, you're back in.
0:28:38 > 0:28:4040... One...
0:28:41 > 0:28:45With you again on my right at £40,000.
0:28:45 > 0:28:47First time at 40.
0:28:47 > 0:28:49Second time at 40.
0:28:49 > 0:28:50Are we done?
0:28:50 > 0:28:51Half?
0:28:51 > 0:28:54Half? 41. Half?
0:28:57 > 0:28:59Not sure? With you again, sir, at 41.
0:28:59 > 0:29:02With me all the way, first time...
0:29:02 > 0:29:0441, second time, are we done?
0:29:04 > 0:29:07Selling away then at £41,000...
0:29:07 > 0:29:08GAVEL BANGS Well done, sir.
0:29:08 > 0:29:12Can I have your paddle, please? Lucky for some, 13.
0:29:12 > 0:29:16That successful bid of £41,000 was made by Nigel,
0:29:16 > 0:29:18who, along with wife Alison,
0:29:18 > 0:29:22came along to meet me for a chat at their newly purchased house.
0:29:22 > 0:29:25What plans await? I wonder...
0:29:26 > 0:29:30# We're only making plans for Nigel... #
0:29:31 > 0:29:34- Alison and Nigel, great to meet you both!- Hello.- Hello, there.
0:29:34 > 0:29:36- Congratulations. - Thank you.- Thank you.
0:29:36 > 0:29:38Tell me why you wanted to buy this little place.
0:29:38 > 0:29:40- Well, Nigel was very ill a couple of years ago...- Oh, no!
0:29:40 > 0:29:43- ..so he had to change his... He was a builder.- Right.
0:29:43 > 0:29:46- So he had to change his career. - I was a builder for 40 years.- Right.
0:29:46 > 0:29:52- So I know the game. We've got a good team of lads doing jobs...- Right.
0:29:52 > 0:29:56- So, yeah, hopefully it'll be OK.- So, is property investment new to you?
0:29:56 > 0:29:58Is it something you've done a lot of?
0:29:58 > 0:30:00- Er, fairly new to it.- Yeah.
0:30:00 > 0:30:02So, OK, tell me about this place.
0:30:02 > 0:30:04What are you going to do to it to sort it out?
0:30:04 > 0:30:09- Well... Ha-ha! The back door, we're going to close up.- OK.
0:30:09 > 0:30:12And extend the bathroom, make it bigger,
0:30:12 > 0:30:14so we can get a bathroom shower into it.
0:30:14 > 0:30:16- We're going to make this into the kitchen.- OK.
0:30:16 > 0:30:18- Bring the kitchen into here. - Oh, right!
0:30:18 > 0:30:21Units round, so they can have a table in this area.
0:30:21 > 0:30:27New central heating, new electrics, new skirting boards, where needed.
0:30:27 > 0:30:29Skimmed out where needed.
0:30:29 > 0:30:31New bathroom, new kitchen.
0:30:31 > 0:30:35- Decoration.- Decoration. - Decoration, yeah.
0:30:38 > 0:30:40# Moving
0:30:42 > 0:30:43# Moving... #
0:30:44 > 0:30:47'Nigel and Allison strike me as a pretty sensible couple
0:30:47 > 0:30:50'and seem to have everything worked out.
0:30:50 > 0:30:53'But there's that small matter of the communal roof at the back.
0:30:53 > 0:30:56'Are they going to make friends with their next door neighbours?'
0:30:58 > 0:31:02- Basically, I own the property next door.- Oh, right!
0:31:02 > 0:31:05- I bought it at the auction before this one.- OK.
0:31:05 > 0:31:10And then this one came into sale about a week after, so I thought...
0:31:10 > 0:31:12"Oh, I may as well buy this one as well!"
0:31:12 > 0:31:15- And, if they're both together, they are easier looked after, so...- Mm!
0:31:15 > 0:31:17'Well, that's them sorted
0:31:17 > 0:31:21'if they ever need to borrow a cup of sugar or even repair a roof.
0:31:21 > 0:31:23'So, what's the timescale?'
0:31:25 > 0:31:27'A couple of months, I'm hoping.'
0:31:27 > 0:31:30'Right. And then is the idea to rent it out or sell it on?'
0:31:30 > 0:31:34'The idea is to rent both of the properties out.'
0:31:34 > 0:31:36What's the budget going to be?
0:31:36 > 0:31:38- About eight to ten.- Yeah.- OK.
0:31:38 > 0:31:41And how much of the work do you two actually do?
0:31:41 > 0:31:44- He does a lot more than me! - THEY LAUGH
0:31:44 > 0:31:47Yeah, I do quite a lot. I'm out... Well, I've been out every day.
0:31:47 > 0:31:49And just...
0:31:49 > 0:31:52I can do most things, as long as I don't have to lift heavy weights.
0:31:52 > 0:31:57Um, we have a joiner, plumber, heating engineer and electrician.
0:31:57 > 0:32:02And then after this one, plans for expanding the portfolio further?
0:32:02 > 0:32:04- Yeah.- Hopefully, yes.- Hopefully.
0:32:04 > 0:32:06If we can do four or five a year...
0:32:06 > 0:32:09- Oh! But you're enjoying it, though? - Yeah!- Yes.
0:32:09 > 0:32:12- I've really enjoyed it. - Well, listen, congratulations!
0:32:12 > 0:32:14- BOTH: Thank you very much. - Good luck with it.
0:32:14 > 0:32:16- Thank you.- I look forward to seeing how you get on.
0:32:16 > 0:32:18- Thank you.- Thank you.
0:32:18 > 0:32:20SEAGULL CRIES
0:32:20 > 0:32:22Well, the seagulls certainly seem to like the property -
0:32:22 > 0:32:25and so do Nigel and Alison.
0:32:25 > 0:32:29The second one in this street - next door, no less!
0:32:29 > 0:32:31How will they get on sorting THIS one out?
0:32:31 > 0:32:34- You can find out later in the show. - SEAGULL CRIES
0:32:34 > 0:32:35Shut up!
0:32:40 > 0:32:43Back now to West Dulwich, South London,
0:32:43 > 0:32:46with its excellent shops and amenities.
0:32:46 > 0:32:49It also boasts ideal rail links.
0:32:49 > 0:32:51The property I went to see was guided at 190,000 -
0:32:51 > 0:32:53and looked perfect!
0:32:56 > 0:32:59But the pleasantries didn't last long because this beautiful flat
0:32:59 > 0:33:03was riddled with damp in every room.
0:33:03 > 0:33:07But it didn't dampen the enthusiasm of primary school teacher Julia,
0:33:07 > 0:33:13who paid 278,000 at auction and was delighted with her purchase.
0:33:15 > 0:33:18Julia only had £2,000 in her budget
0:33:18 > 0:33:20and needed to turn the flat around fast.
0:33:20 > 0:33:23So, when we returned one month later,
0:33:23 > 0:33:25there were some subtle changes to the outside.
0:33:25 > 0:33:27But what about the inside?
0:33:31 > 0:33:33You'd be thinking that nothing has changed
0:33:33 > 0:33:38but eagle-eyed viewers will notice a few vital improvements.
0:33:38 > 0:33:43# Take a closer look at Take a closer look at
0:33:43 > 0:33:45# Take a closer look at
0:33:45 > 0:33:48- # Take a closer look - Yeah, yeah... #
0:33:48 > 0:33:50It looks like Julia has fixed the damp.
0:33:52 > 0:33:55When I've been talking to the builders, they've explained,
0:33:55 > 0:33:56if you've done a damp-proofing course
0:33:56 > 0:33:59and you haven't done it properly, it will fail.
0:33:59 > 0:34:03And the damp will come back and then some,
0:34:03 > 0:34:05which is basically what's happened in this flat.
0:34:05 > 0:34:08Yes, the damp was everywhere.
0:34:08 > 0:34:11So, did she have to pull out that recently renovated kitchen
0:34:11 > 0:34:14and bathroom to fix it?
0:34:14 > 0:34:17A few of the builders said, "We're going to have to rip the kitchen out"
0:34:17 > 0:34:20and I had a heart attack because the kitchen is really lovely.
0:34:20 > 0:34:22I didn't want to replace it.
0:34:22 > 0:34:24But this team of builders said,
0:34:24 > 0:34:27"We can do the treatment from the outside."
0:34:27 > 0:34:30So, they drilled holes on the outside and did the treatment.
0:34:30 > 0:34:34They poured the chemicals in and dealt with the damp from the outside,
0:34:34 > 0:34:35rather than the inside.
0:34:35 > 0:34:40And that saved me having to replace the kitchen and replace the bathroom!
0:34:41 > 0:34:43Phew! That will have saved Julia a fortune.
0:34:43 > 0:34:47But other rooms required much more work.
0:34:47 > 0:34:49This wall was really bad.
0:34:49 > 0:34:52Apparently, they had to take seven layers of plaster off
0:34:52 > 0:34:53to get to the brick.
0:34:53 > 0:34:57Then they did the treatment, which is the chemicals.
0:34:57 > 0:34:59And then they had to keep coming
0:34:59 > 0:35:02and, a bit like spreading butter on bread,
0:35:02 > 0:35:06they had to do layer after layer after layer.
0:35:06 > 0:35:08Afterwards, it needed to be skimmed.
0:35:08 > 0:35:13Finally, he repainted the whole of the living room, the ceilings,
0:35:13 > 0:35:17after the plaster had dried out, which took about four days.
0:35:17 > 0:35:20Replaced the skirting boards, repainted them...
0:35:20 > 0:35:23I'm really pleased with the result. I think it looks really good.
0:35:23 > 0:35:28The whole renovation cost 6,000 and took a month to complete.
0:35:28 > 0:35:32And that put Julia £4,000 OVER her original budget.
0:35:32 > 0:35:34How did she cover the extra cost?
0:35:37 > 0:35:42I just used the last of my savings. I'm literally on my last bits now.
0:35:42 > 0:35:46That's cleaned me out now. Yeah, I'm absolutely broke!
0:35:46 > 0:35:47SHE LAUGHS
0:35:48 > 0:35:51Well, you might not be broke for very long, Julia.
0:35:51 > 0:35:55Two local estate agents can tell us its value.
0:35:55 > 0:35:58So, bought at auction for 278,000
0:35:58 > 0:36:01and having renovated at a cost of six grand,
0:36:01 > 0:36:05Julia's total spend is £284,000.
0:36:07 > 0:36:08I think, in this market,
0:36:08 > 0:36:10this property could achieve
0:36:10 > 0:36:14somewhere between £325,000-£350,000.
0:36:14 > 0:36:16If this property came to the market today,
0:36:16 > 0:36:20I would estimate its value between £325,000
0:36:20 > 0:36:21and £350,000.
0:36:23 > 0:36:25A top valuation of 350,000
0:36:25 > 0:36:30would give Julia a pre-tax profit of £66,000.
0:36:30 > 0:36:33Is she pleased with those valuations?
0:36:33 > 0:36:35Yeah, they're really good! I'm really pleased with that.
0:36:35 > 0:36:38That's a good result. It means I've got what I paid for it
0:36:38 > 0:36:40and a little something.
0:36:40 > 0:36:43So, yeah, I'm really happy. Really pleased!
0:36:43 > 0:36:47Those numbers are a great start but Julia always wanted to rent
0:36:47 > 0:36:51and is pitching the flat at around £1,200 per calendar month.
0:36:51 > 0:36:54Now, is that the right market value?
0:36:54 > 0:36:56From a rental perspective, I think
0:36:56 > 0:37:01this property could achieve around about £1,200 per calendar month.
0:37:01 > 0:37:03For the rental market today, I would estimate this property
0:37:03 > 0:37:09achieving between £1,150 per calendar month to £1,250 per calendar month.
0:37:10 > 0:37:13An average value of £1,200 per calendar month
0:37:13 > 0:37:15would give Julia a 5% yield.
0:37:17 > 0:37:19We did a little bit of research
0:37:19 > 0:37:22and that's the figure that I thought we would get for it,
0:37:22 > 0:37:24so I'm pleased with that.
0:37:24 > 0:37:28# I was making it easy for the clean-up woman... #
0:37:29 > 0:37:32Julia is putting a few final touches to the property.
0:37:32 > 0:37:35And I'll bet she'll be glad to mop up a decent return
0:37:35 > 0:37:37on her investment.
0:37:37 > 0:37:41But would she take on a property with this kind of problem again?
0:37:42 > 0:37:46I so would take a flat that's got damp.
0:37:46 > 0:37:49I think if you bring in some experts that know what they're doing,
0:37:49 > 0:37:53then they can take care of the problem and, you know, job gets done.
0:37:56 > 0:37:58We're heading back to Workington in Cumbria now,
0:37:58 > 0:38:01a town that isn't monkeying around
0:38:01 > 0:38:03when it comes to major redevelopment.
0:38:03 > 0:38:07But while the town is undergoing changes, some things never change.
0:38:07 > 0:38:13Like the layout of this two-bed mid-terrace, guided at £25,000 plus.
0:38:13 > 0:38:17You've seen these two-up two-downs so many times before on this show,
0:38:17 > 0:38:20I'm sure you could draw a map of the layout!
0:38:20 > 0:38:24But out in the lane, behind the house, there was an unusual problem.
0:38:26 > 0:38:28See that roof? That sloping roof there?
0:38:28 > 0:38:31Well, not only does it cover the kitchen of this property
0:38:31 > 0:38:34but it also covers an extension of the next door neighbour's.
0:38:34 > 0:38:37Shared roofs didn't put off Nigel and Alison,
0:38:37 > 0:38:41who bought the house for £41,000.
0:38:42 > 0:38:46Nearly five months later, when we returned, well, the house
0:38:46 > 0:38:49certainly looked as if things were happening on the outside.
0:38:49 > 0:38:52But what about changes inside?
0:39:02 > 0:39:04Here in the kitchen,
0:39:04 > 0:39:07the original fireplace had already been taken out.
0:39:07 > 0:39:10So it allowed us a nice, open space.
0:39:10 > 0:39:13So we decided to move the kitchen out of the galley kitchen
0:39:13 > 0:39:16and make a nice kitchen in here.
0:39:16 > 0:39:17All new units.
0:39:17 > 0:39:21We put board on here, which gives a nice finish.
0:39:21 > 0:39:23And we're very, very pleased with this result.
0:39:23 > 0:39:27And what was the galley kitchen is now a bathroom. I don't believe it!
0:39:27 > 0:39:30Have Nigel and Alison found a way to change the layout
0:39:30 > 0:39:35of this most predictable property in a way we've not seen before?
0:39:39 > 0:39:42Right, so in the bathroom, what we did, we took the wall out,
0:39:42 > 0:39:44which made the bathroom a lot bigger
0:39:44 > 0:39:48and enabled us to put the big bath in and move it that way,
0:39:48 > 0:39:52so we could have a shower and it didn't splash on the window.
0:39:52 > 0:39:58New sink, new toilet and multi panel on the wall, rather than tiles.
0:39:58 > 0:40:02Erm, I think the multi panel is better than tiles
0:40:02 > 0:40:04when you're going to rent.
0:40:04 > 0:40:07You don't have the problems with grout and things like that.
0:40:07 > 0:40:10So it's made quite a nice bathroom.
0:40:10 > 0:40:12And the new back door area is a good solution,
0:40:12 > 0:40:15sitting between the new kitchen and bathroom.
0:40:15 > 0:40:19But with these major changes and the renovation upstairs,
0:40:19 > 0:40:21have they gone over their budget?
0:40:23 > 0:40:26I think originally we said about eight
0:40:26 > 0:40:28but we went over that by a little bit.
0:40:28 > 0:40:32I think it's come out at about 12 now.
0:40:32 > 0:40:34We felt it was worth spending a bit more money
0:40:34 > 0:40:37to put a nice kitchen in and a nice bathroom in
0:40:37 > 0:40:39- and alter the kitchen to put it in here.- Yeah.
0:40:39 > 0:40:42Because it makes a better finished job.
0:40:42 > 0:40:44And all the work took four months.
0:40:44 > 0:40:46I agree with Alison -
0:40:46 > 0:40:49the extra budget has created a good quality finish.
0:40:49 > 0:40:52Let's hope that two local estate agents agree.
0:40:53 > 0:40:58Bought for £41,000 and with a renovation spend of 12,000,
0:40:58 > 0:41:01Alison and Nigel's total cost is £53,000.
0:41:01 > 0:41:03So, what about rentals?
0:41:03 > 0:41:05And we're in luck because one estate agent
0:41:05 > 0:41:09knows this area particularly well.
0:41:10 > 0:41:12Well, I'm fortunate that we've actually rented
0:41:12 > 0:41:14the property next door to this very recently,
0:41:14 > 0:41:17which was in good condition, like this is.
0:41:17 > 0:41:20And we've achieved £400 per calendar month for that property.
0:41:20 > 0:41:23I'd anticipate that we'd get the same for this.
0:41:23 > 0:41:26We'd expect to get in the region of £300 per calendar month.
0:41:26 > 0:41:28Low.
0:41:28 > 0:41:31Very low. No, we'll get a lot more than that for next door.
0:41:31 > 0:41:34Well, Alison isn't having any of that!
0:41:34 > 0:41:37The second agent felt that £300 per calendar month
0:41:37 > 0:41:40could stretch to £325 per calendar month,
0:41:40 > 0:41:43but it is a whopping difference.
0:41:43 > 0:41:46Well, that's why we always ask for two professional opinions.
0:41:46 > 0:41:48It's not a perfect science.
0:41:48 > 0:41:53Those valuations would give a 9% or a 6% yield respectively.
0:41:53 > 0:41:56So, what about the resale value? Would that cheer them up?
0:41:58 > 0:42:03We would anticipate achieving £65,000 for this house,
0:42:03 > 0:42:05perhaps to ask very slightly higher.
0:42:05 > 0:42:08We would expect to market the property in the region
0:42:08 > 0:42:14of 64,950, with a view to achieving somewhere in excess of 60,000.
0:42:14 > 0:42:18That top value of 65,000 would give Alison and Nigel
0:42:18 > 0:42:22a £12,000 profit before the usual taxes and expenses.
0:42:25 > 0:42:28- It's quite good then, isn't it? - Yeah, it's not bad.
0:42:28 > 0:42:31- Yeah, it's all right. It's not for sale but...- Quite happy with that.
0:42:31 > 0:42:34- Yeah.- It's worth knowing that it's worth more than when we started.
0:42:34 > 0:42:38So the couple keep marching on in the property game,
0:42:38 > 0:42:41transforming mid-terraces into marvellous manors.
0:42:41 > 0:42:44And I think it's down to their partnership.
0:42:44 > 0:42:46Do they work well together?
0:42:50 > 0:42:51- Er...- Yeah!
0:42:51 > 0:42:54- We work well on camera, I think!- No!
0:42:54 > 0:42:56But we DO work well together, don't we? We do!
0:42:56 > 0:42:58I'm not sure about anywhere else...
0:43:03 > 0:43:06Well, that's how today's property stories unfolded
0:43:06 > 0:43:09but we'll have plenty more for you next time.
0:43:09 > 0:43:12Yes, so join us for more auction action and development stories
0:43:12 > 0:43:14from Homes Under The Hammer.
0:43:14 > 0:43:15- We'll see you then.- Goodbye.
0:43:15 > 0:43:16Goodbye.