0:00:02 > 0:00:04With the property market in a state flux,
0:00:04 > 0:00:06everybody has to do their own research.
0:00:06 > 0:00:09You have to trust your instincts and make your own decisions.
0:00:09 > 0:00:11Yes, and one way to do that
0:00:11 > 0:00:13is to see things with your own eyes,
0:00:13 > 0:00:16and a good way to do that is by going to the auctions.
0:00:41 > 0:00:45All sorts of properties go up for auction, some in good nick
0:00:45 > 0:00:47and some not so much!
0:00:47 > 0:00:50But they are the ones that are the most interesting, challenging
0:00:50 > 0:00:52and potentially lucrative,
0:00:52 > 0:00:57so here's what we've found for you on today's show.
0:00:57 > 0:01:00This three-bed end-terrace in Maidstone
0:01:00 > 0:01:02looks solid enough, but there's a big catch...
0:01:02 > 0:01:06So much work needs to take place in here!
0:01:06 > 0:01:10In Salford, a one-bedroomed flat has one big issue...
0:01:10 > 0:01:12Finding it!
0:01:12 > 0:01:16And you eventually get to the flat.
0:01:16 > 0:01:21And while this two-bed mid-terrace in Stoke is worryingly damp,
0:01:21 > 0:01:23there is a more pressing concern...
0:01:23 > 0:01:27The big question is, where is the bathroom?
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:33We'll find out who bought them and what they paid for them
0:01:33 > 0:01:36- when they went under the hammer. - Bought, well done.
0:01:40 > 0:01:43And so to the Garden of England - Kent -
0:01:43 > 0:01:47and Maidstone, which has fantastic transport links to London
0:01:47 > 0:01:50and also to the south coast and beyond.
0:01:50 > 0:01:53It also has some pretty solid-looking property.
0:01:53 > 0:01:56Less than a mile away from the high street
0:01:56 > 0:02:00and I'm on this extremely pleasant and popular residential road.
0:02:00 > 0:02:04It's full of really rather substantial Victorian houses,
0:02:04 > 0:02:06and it's this one I'm here to see.
0:02:06 > 0:02:08Now, it's got three bedrooms
0:02:08 > 0:02:13and has a guide price of £120,000 to £130,000.
0:02:13 > 0:02:18OK, so it may be lacking a little bit of kerb appeal right now,
0:02:18 > 0:02:21but a spruce-up could transform the front garden.
0:02:21 > 0:02:23But what about the inside?
0:02:23 > 0:02:25Wow! Untouched, or what?!
0:02:25 > 0:02:29It's quite rare that you see houses like this.
0:02:29 > 0:02:32My goodness! Just the way they've been decorated!
0:02:32 > 0:02:35And look, you've got Crittall windows in here. Hello!
0:02:35 > 0:02:38Incredible! I'm just wondering if it'd be worth taking this whole
0:02:38 > 0:02:43middle section out and opening these two rooms up.
0:02:43 > 0:02:45But look at the cornicing in here!
0:02:45 > 0:02:47I know I'm getting incredibly excited and most of you
0:02:47 > 0:02:49looking at this will think, "What?!"
0:02:49 > 0:02:51It's like a film set.
0:02:51 > 0:02:54So much work needs to take place in here
0:02:54 > 0:02:57and I know this would frighten a lot of you off.
0:02:57 > 0:02:59Look at this old boiler.
0:02:59 > 0:03:02But the thing I love about it is that it is untouched.
0:03:02 > 0:03:04You've got beautiful doors,
0:03:04 > 0:03:05lovely big, open spaces.
0:03:05 > 0:03:08I mean, look at this for a kitchen.
0:03:08 > 0:03:11Is it scary or is it really exciting?
0:03:11 > 0:03:14I don't know. I'm going to investigate further.
0:03:20 > 0:03:23Thrilling, chilling, terrific or terrifying?
0:03:23 > 0:03:25Maybe all the above.
0:03:25 > 0:03:30I hate to think what nasties might be lurking in the cellar,
0:03:30 > 0:03:32and there's no getting away from
0:03:32 > 0:03:34the fact that everything will need doing here.
0:03:34 > 0:03:37Plumbing, wiring, the lot.
0:03:37 > 0:03:41And that's all before you start messing around with the layout.
0:03:41 > 0:03:45Oh, I wasn't expecting this little room at the back of the property.
0:03:45 > 0:03:48A bonus area. Fantastic!
0:03:48 > 0:03:51But what would you do with it?
0:03:51 > 0:03:54I'm wondering what you could do with the internal layout.
0:03:54 > 0:03:56Would you have this as a dining room and knock through?
0:03:56 > 0:03:59Would you keep it as a study?
0:03:59 > 0:04:02But look, it's just fantastic. Cornicing, picture rails,
0:04:02 > 0:04:04a fabulous old fireplace.
0:04:04 > 0:04:07I would really love to see what's behind there
0:04:07 > 0:04:10because, at the moment, it's all just boarded up.
0:04:10 > 0:04:12Hopefully, it'll be a nice garden.
0:04:13 > 0:04:16What I am seeing here is potential...
0:04:16 > 0:04:18and loads of it.
0:04:18 > 0:04:21Fingers crossed it's the same story up a storey,
0:04:21 > 0:04:23if you catch my drift.
0:04:25 > 0:04:27Well, the space continues upstairs.
0:04:27 > 0:04:30I mean, look at the proportions of this room. Fantastic.
0:04:30 > 0:04:34And yep, good news! There is a garden.
0:04:34 > 0:04:39Bad news - it's completely overgrown.
0:04:39 > 0:04:42I can't even see where it ends.
0:04:42 > 0:04:46There's just brambles and bushes everywhere.
0:04:46 > 0:04:49And if you like blackberries, you're in luck.
0:04:51 > 0:04:54Well, the Garden of England it is NOT,
0:04:54 > 0:04:57but there might just be a bit of outside space
0:04:57 > 0:04:59lurking under all that foliage.
0:04:59 > 0:05:03Back inside, the next stop is the only bathroom,
0:05:03 > 0:05:06which is a touch on the small side, really.
0:05:06 > 0:05:09There's a second bedroom
0:05:09 > 0:05:13and at the front of the house, the crowning glory...
0:05:13 > 0:05:16So, the master bedroom, as you'd expect,
0:05:16 > 0:05:19in a lovely untouched Victorian house like this.
0:05:19 > 0:05:22I mean, just a gorgeous window area,
0:05:22 > 0:05:24really, truly fantastic.
0:05:24 > 0:05:28But I am wondering, can you squeeze in an en suite or a bathroom?
0:05:28 > 0:05:32Because at the moment, you've just got one family bathroom.
0:05:32 > 0:05:35There is something you could do, and I've seen it done many times
0:05:35 > 0:05:38and it does work really well - just put a wall up here,
0:05:38 > 0:05:41you could have an independent space in here with your window,
0:05:41 > 0:05:44so you could still keep the nice proportion of this room.
0:05:44 > 0:05:46Bedroom, bathroom.
0:05:46 > 0:05:48I think that would really add value to this property.
0:05:48 > 0:05:53A more radical approach might be to go up into the loft
0:05:53 > 0:05:56and add a bedroom or two there,
0:05:56 > 0:05:59but that might just send your budget through the roof as well.
0:05:59 > 0:06:03We asked along a local property expert to get his thoughts
0:06:03 > 0:06:05on the end-terrace.
0:06:05 > 0:06:08My first impressions of the property are good.
0:06:08 > 0:06:10It's really substantial.
0:06:10 > 0:06:12It's lovely to see. It's almost...
0:06:12 > 0:06:15It's in a time warp, really, isn't it? It's untouched.
0:06:15 > 0:06:17So it's begging for some modernisation
0:06:17 > 0:06:20but hopefully, with all the lovely features,
0:06:20 > 0:06:22someone will be sympathetic.
0:06:22 > 0:06:27And would he be tempted to develop the attic space?
0:06:27 > 0:06:31Converting the loft into one or two bedrooms,
0:06:31 > 0:06:34or maybe a big master bedroom with a lovely en suite,
0:06:34 > 0:06:37would make it a very desirable property,
0:06:37 > 0:06:40but I would suspect, as is often the case,
0:06:40 > 0:06:41that all the owner might do
0:06:41 > 0:06:44is simply recover the cost of that.
0:06:44 > 0:06:46In fact, if they're not careful,
0:06:46 > 0:06:49they could overspend and it wouldn't be economic,
0:06:49 > 0:06:53particularly if they're looking to make a profit on the property.
0:06:53 > 0:06:55Fair enough. Bearing in mind the auction guide price
0:06:55 > 0:06:58of £120,000 to £130,000,
0:06:58 > 0:07:00once done up, what does he think it could fetch
0:07:00 > 0:07:02on the resale market?
0:07:04 > 0:07:06If it were renovated in its existing form,
0:07:06 > 0:07:10I would suggest about £260,000.
0:07:10 > 0:07:12If they go into the loft
0:07:12 > 0:07:15to create either one or two more bedrooms,
0:07:15 > 0:07:19it could reach as much as £275,000.
0:07:19 > 0:07:23And if you left the layout as it is and put
0:07:23 > 0:07:25the house on the rental market?
0:07:25 > 0:07:31I would anticipate achieving about £950 per calendar month.
0:07:31 > 0:07:35Oh! I love houses like these -
0:07:35 > 0:07:39solid, straightforward and, OK, it needs loads of work,
0:07:39 > 0:07:41but it really will be worth the effort.
0:07:41 > 0:07:44Let's see who agreed at the auction.
0:07:46 > 0:07:49So, start with lot 64,
0:07:49 > 0:07:53in Maidstone. It's a three-bedroom bay-fronted house for improvement.
0:07:53 > 0:07:56It's got a guide price of 120 to 130.
0:07:56 > 0:07:58So, may I invite your bids at, say...
0:07:58 > 0:08:01Well, £120,000. Start me off.
0:08:01 > 0:08:04120. And 5. And 30.
0:08:04 > 0:08:07130. And 5. And 40.
0:08:07 > 0:08:10140. And 5. And 50.
0:08:10 > 0:08:12150 in a fresh place.
0:08:12 > 0:08:15155. 160.
0:08:15 > 0:08:18160. And 5. 170 right at the back.
0:08:18 > 0:08:20And 5. And 80.
0:08:20 > 0:08:21180.
0:08:21 > 0:08:24At 175 to the maiden bidder.
0:08:24 > 0:08:27180 I'm looking for. 180 in a fresh place. And 5.
0:08:27 > 0:08:29185, if you like.
0:08:29 > 0:08:32At 180, standing at the back in the open shirt. 185 I'm looking for.
0:08:32 > 0:08:33182.
0:08:33 > 0:08:35182 I've got.
0:08:35 > 0:08:38182. And 4. 184.
0:08:38 > 0:08:40And 6. And 8.
0:08:40 > 0:08:43188. 87, if you like.
0:08:43 > 0:08:46For £1,000. 187.
0:08:46 > 0:08:49188. Looks like you could buy it for that.
0:08:49 > 0:08:51190 I'm bid.
0:08:51 > 0:08:53192 anywhere else? 192 anywhere else?
0:08:53 > 0:08:57At £190,000 I have for the first time.
0:08:57 > 0:09:00£190,000 bid for the second time.
0:09:00 > 0:09:05Third and final bid at £190,000, are we all done?
0:09:05 > 0:09:07Yours at 190, sir, and your number, please?
0:09:07 > 0:09:10And that successful bid of £190,000
0:09:10 > 0:09:13came from Maidstone local Colin.
0:09:13 > 0:09:16Colin used to be a bingo caller.
0:09:20 > 0:09:22And in his time,
0:09:22 > 0:09:25Colin has rubbed shoulders with some of the biggest names
0:09:25 > 0:09:27in entertainment - Ken Dodd, Bob Monkhouse,
0:09:27 > 0:09:30even Sir Cliff Richard.
0:09:32 > 0:09:35But Colin has yet another string to his bow.
0:09:35 > 0:09:38The former bingo caller started developing property
0:09:38 > 0:09:42back in - eyes down, goodbye teens - 19 -
0:09:42 > 0:09:44candy store - 74.
0:09:44 > 0:09:48I met Colin and his builder Andrew for a quick chat.
0:09:50 > 0:09:53Colin and Andrew, congratulations.
0:09:53 > 0:09:55Now, Andrew, you're the builder.
0:09:55 > 0:09:59I'm the contractor, yeah. I've got this lovely thing to do up.
0:09:59 > 0:10:01So did you see the house before Colin bought it?
0:10:01 > 0:10:04- Not at all.- So you've seen it for the first time today?- Absolutely.
0:10:04 > 0:10:08- Wow!- I didn't even see the house before Colin bought it!
0:10:08 > 0:10:10Colin, what were you thinking?!
0:10:10 > 0:10:12I bought it blind.
0:10:12 > 0:10:15So, Colin, why have you bought this house? An investment opportunity
0:10:15 > 0:10:17or just to keep you busy?
0:10:17 > 0:10:20To give me something to pop round and see how it's coming along
0:10:20 > 0:10:22and watch the progress of it,
0:10:22 > 0:10:25because I'm a pensioner now, Lucy,
0:10:25 > 0:10:28and I don't have much to do. I used to be a bingo caller
0:10:28 > 0:10:31with plenty of work, but I've got nothing now. No-one wants me now!
0:10:31 > 0:10:34So it's quiet for you, but this will keep you busy,
0:10:34 > 0:10:36- because you've got lots to do here. - Yes.
0:10:36 > 0:10:39- Were you quite pleased with what you paid?- Yes.
0:10:39 > 0:10:41I worked out the figures,
0:10:41 > 0:10:45and if I come out just a little bit in front, I shall be happy.
0:10:45 > 0:10:50Colin did pay 60 grand over the top guide price for the property,
0:10:50 > 0:10:53but I agree. If he keeps an eye on his budget
0:10:53 > 0:10:57and sells the property on, there is great potential here.
0:10:57 > 0:11:01That kitchen - well, it's just incredible.
0:11:01 > 0:11:04There's so much you can do to completely turn this place around.
0:11:04 > 0:11:07- That's where you come in, Andrew.- It is.
0:11:07 > 0:11:11I'll be looking at knocking through and changing the layout a little bit.
0:11:11 > 0:11:12Brand-new kitchen, obviously,
0:11:12 > 0:11:15and trying to keep the old features.
0:11:15 > 0:11:17I'm glad that you've said that,
0:11:17 > 0:11:19because the first thing that I noticed about this house is,
0:11:19 > 0:11:22there are some amazing features.
0:11:22 > 0:11:25People always say, "Oh, Lucy, you always go on about features,"
0:11:25 > 0:11:27but to have something modern and workable
0:11:27 > 0:11:30and up to date, but with the original features,
0:11:30 > 0:11:31I think you can't beat.
0:11:31 > 0:11:34- To me, that helps sell a property, as well.- Yes.
0:11:34 > 0:11:36Keep those nice little old features there
0:11:36 > 0:11:39but modernise it so it works for the family.
0:11:39 > 0:11:42Now, Colin, you're making me laugh
0:11:42 > 0:11:44because it's almost as though you're looking at Andrew
0:11:44 > 0:11:48- and he's making all the decisions. - It's so good, I'm going to buy it!
0:11:48 > 0:11:51Andrew, how's it going to work as you walk in through the front door?
0:11:51 > 0:11:53As you come through the front door,
0:11:53 > 0:11:57the wall to the right-hand side will stay, we'll keep the lounge there.
0:11:57 > 0:12:01What about this window area? This interesting Crittall creation?
0:12:01 > 0:12:03- That's going to be coming out.- Right.
0:12:03 > 0:12:06- We'll probably board across here.- OK.
0:12:06 > 0:12:09- So keep this as a nice, large lounge.- Fantastic.
0:12:09 > 0:12:11- So a big open-plan room.- Yes.
0:12:11 > 0:12:14- Kitchen goes basically on two walls here.- Yeah.
0:12:14 > 0:12:17- With a breakfast bar at the back.- OK.
0:12:17 > 0:12:19Taking that back wall out as well.
0:12:19 > 0:12:23- Going into a nice dining area at the back there.- Fabulous.
0:12:23 > 0:12:25- So kitchen-dining area. - Kitchen-dining area.
0:12:25 > 0:12:27- Patio doors in the back.- Hey!
0:12:27 > 0:12:30- Going out onto the back... - Into the jungle!
0:12:30 > 0:12:32I think there's a garden somewhere.
0:12:32 > 0:12:34Junking the jungle
0:12:34 > 0:12:38and opening the kitchen-diner into the garden sounds fantastic.
0:12:38 > 0:12:42And upstairs, once they've stripped everything back,
0:12:42 > 0:12:45Colin and Andrew will have a look at putting in another bathroom,
0:12:45 > 0:12:48but they're not planning on going up into the loft.
0:12:48 > 0:12:52So how long do you think it's going to take to get this place shipshape?
0:12:52 > 0:12:54THEY MUMBLE
0:12:54 > 0:12:55You guys!
0:12:55 > 0:13:00Joking aside, Colin and Andrew have a three-month timescale,
0:13:00 > 0:13:04which sounds doable given that they won't need to apply to the council
0:13:04 > 0:13:06for planning permission.
0:13:06 > 0:13:09What about the money you're going to need to spend on it?
0:13:09 > 0:13:11Or do you leave that up to Andrew?
0:13:11 > 0:13:13That's up to him. I've got no money left...
0:13:13 > 0:13:15Andrew, that's not true, is it?
0:13:15 > 0:13:19- That isn't true.- You tell me how it is. He's too much of a joker.
0:13:19 > 0:13:23Yeah. We're probably looking at the 30, 35 kind of mark,
0:13:23 > 0:13:26round there, to get it all up to the kind of level
0:13:26 > 0:13:28- which I would be happy with. - Colin and Andrew,
0:13:28 > 0:13:31it's been so much fun meeting you today.
0:13:31 > 0:13:34I can't wait to see the project and see how it turns out. Good luck.
0:13:34 > 0:13:37- Well done.- Thank you. - Lovely to meet you.
0:13:37 > 0:13:42So, former bingo caller Colin certainly has got a house
0:13:42 > 0:13:45full of character here and a great colleague in Andrew.
0:13:45 > 0:13:47I love this property
0:13:47 > 0:13:50and I cannot wait to see what it looks like when it's done.
0:13:50 > 0:13:52You can find out later in the show.
0:13:57 > 0:14:02As regeneration projects go, they don't come much bigger than
0:14:02 > 0:14:05the City of Salford in Greater Manchester,
0:14:05 > 0:14:07and even on a murky day like this,
0:14:07 > 0:14:10the transformation shines through.
0:14:10 > 0:14:13I'm in the Broughton area of the city,
0:14:13 > 0:14:16about a mile-and-a-half from Manchester city centre
0:14:16 > 0:14:20to see a property which definitely sounds interesting.
0:14:20 > 0:14:22It's a one-bedroom flat
0:14:22 > 0:14:25in this old converted warehouse.
0:14:25 > 0:14:30The guide price was a tantalising £25,000 plus.
0:14:30 > 0:14:32Let's take a look.
0:14:34 > 0:14:37Built in 1860, this grand old lady of a building
0:14:37 > 0:14:42was once the home of the Pendleton Co-operative Industrial Society,
0:14:42 > 0:14:45originally comprising of shops, warehousing,
0:14:45 > 0:14:48assembly rooms and offices.
0:14:48 > 0:14:50It's great to see our industrial heritage
0:14:50 > 0:14:53developed into homes for a new generation.
0:14:55 > 0:14:58Our flat is on the top floor. There is at least a lift up to it.
0:14:58 > 0:15:01But I think a map might be useful.
0:15:03 > 0:15:06I'm really at a loss to find it.
0:15:06 > 0:15:13# But I still haven't found what I'm looking for... #
0:15:13 > 0:15:16What a warren of doors and corridors.
0:15:16 > 0:15:19It's got to be around here somewhere.
0:15:20 > 0:15:21HE SIGHS
0:15:23 > 0:15:25Phew!
0:15:25 > 0:15:29And finally, through a door, into a little corridor,
0:15:29 > 0:15:31round through another door, round a bend
0:15:31 > 0:15:34and you eventually get to the flat.
0:15:35 > 0:15:38Going to have to give somebody a sat nav when they move in.
0:15:38 > 0:15:42It's incredible. But what do you find when you eventually get here?
0:15:42 > 0:15:44Well, um, doors.
0:15:45 > 0:15:48Not where they should be, like in a doorframe.
0:15:48 > 0:15:51Let's skip on from that a minute. The bathroom there.
0:15:51 > 0:15:53It looks to be reasonably modern.
0:15:53 > 0:15:57All this building has been refurbished quite recently
0:15:57 > 0:16:01and so it's not in bad nick if you can see through the mess.
0:16:01 > 0:16:04The bedroom there, and through into your one main living/kitchen room.
0:16:04 > 0:16:08The first thing that strikes you when you come through the door,
0:16:08 > 0:16:12is where the windows should be, there is a big wall.
0:16:12 > 0:16:15Low down you've got these little windows, another window here.
0:16:15 > 0:16:20But it doesn't really create a very nice initial impression at all.
0:16:20 > 0:16:22Neither does that, a bit of a hole in the wall,
0:16:22 > 0:16:25it looks like something's been broken there.
0:16:25 > 0:16:28Um, it's a bit of a shame, because obviously this is
0:16:28 > 0:16:32a half-decent kitchen, but obviously it's in a bit of a state.
0:16:32 > 0:16:35I don't think it would take too much effort to put this right.
0:16:35 > 0:16:37And the same applies for the rest of the flat.
0:16:37 > 0:16:40But it's a classic case of your initial impression -
0:16:40 > 0:16:44those first 30 seconds aren't good.
0:16:44 > 0:16:49Now, it's important to get past the cosmetic damage and step back a bit.
0:16:49 > 0:16:51The kitchen will need a complete refit
0:16:51 > 0:16:55but chances are you were going to do that anyway.
0:16:55 > 0:16:57And the bathroom actually could be OK.
0:16:57 > 0:16:59It's a white suite, there's a power shower,
0:16:59 > 0:17:03so it might be salvageable, and that could save some dosh.
0:17:06 > 0:17:11It is often a problem when it comes to designing the refit,
0:17:11 > 0:17:14or refurbishment, of old industrial buildings like this,
0:17:14 > 0:17:18of how do you get living space into what was basically
0:17:18 > 0:17:21a commercial or industrial unit?
0:17:21 > 0:17:26And the compromise, as has happened here, is often windows -
0:17:26 > 0:17:30there's none in that front bit and there's none in this bedroom.
0:17:30 > 0:17:32I mean, there's a skylight up there, which,
0:17:32 > 0:17:36I suppose, at least brings in some natural light.
0:17:36 > 0:17:40I don't personally find this particularly liveable.
0:17:40 > 0:17:44However, there are those people who like darkness in the bedroom
0:17:44 > 0:17:48and not too many windows so, for those people, the flat is perfect.
0:17:48 > 0:17:53# So light up this room
0:17:53 > 0:17:55# Cos it's dark in here
0:17:55 > 0:17:59# And I'm told that you're coming round soon... #
0:17:59 > 0:18:03Clever lighting will give this flat a real lift.
0:18:03 > 0:18:07Yes, it is a quirky property, but it's in a unique building,
0:18:07 > 0:18:11and with a 999-year lease and a service charge
0:18:11 > 0:18:15of just £100 a year, I certainly wouldn't write it off.
0:18:19 > 0:18:23What does a local estate agent think of this one-bedroom flat?
0:18:24 > 0:18:27Nice, attractive building, which is important, aesthetics on the street,
0:18:27 > 0:18:29good location, convenient for public transport,
0:18:29 > 0:18:33own car parking to the rear of the property as well,
0:18:33 > 0:18:36on-site caretaker as well, which always helps.
0:18:36 > 0:18:39Very popular building for tenants who work locally,
0:18:39 > 0:18:42so a very high demand for
0:18:42 > 0:18:45these types of properties from the investor market at the moment.
0:18:45 > 0:18:47So if the flat was fully refurbished,
0:18:47 > 0:18:51it sounds like there is a market for this type of property.
0:18:51 > 0:18:55But with what was a £25,000 plus guide price,
0:18:55 > 0:18:58could it be worth rolling up your sleeves and sorting it out?
0:18:58 > 0:18:59Once renovated,
0:18:59 > 0:19:03this flat would be worth around £55,000 on the open market.
0:19:03 > 0:19:08So potentially a decent uplift on resale values.
0:19:08 > 0:19:09What about rental returns?
0:19:10 > 0:19:13I would value this property for rental purposes
0:19:13 > 0:19:15at £425 per calendar month.
0:19:22 > 0:19:25Well, it might not be for everybody, but these kind of flats
0:19:25 > 0:19:31and apartments are very popular and will rent out very easily.
0:19:31 > 0:19:35So if whoever bought this got it anything like the guide price,
0:19:35 > 0:19:37the yields could be quite significant.
0:19:37 > 0:19:41Let's see who did buy it when it went under the hammer.
0:19:43 > 0:19:44Lot 32.
0:19:44 > 0:19:48The apartment comprises open-plan lounge/diner and kitchen,
0:19:48 > 0:19:50plus bedroom and bathroom.
0:19:50 > 0:19:5325 plus is your guide. Who's here for this?
0:19:53 > 0:19:57- 20.- 20. I'm in at 20. At £20,000.
0:19:57 > 0:20:04In ones. 21 back corner. 22. 23. 24?
0:20:04 > 0:20:1124. 25. 26. 27. 28.
0:20:11 > 0:20:1329. 30.
0:20:13 > 0:20:1631.
0:20:16 > 0:20:1832, may I say, madam?
0:20:18 > 0:20:2331,250. Not much to beat. At £31,500.
0:20:23 > 0:20:28Against the phone. With you at £31,500. I'm selling it.
0:20:29 > 0:20:3231,750. 32.
0:20:33 > 0:20:36250?
0:20:36 > 0:20:40Got 32. It's in the room. It's against you.
0:20:40 > 0:20:45£32,000, first time. £32,000, second time.
0:20:45 > 0:20:47Third and final time. All done?
0:20:47 > 0:20:49All out? Selling away.
0:20:49 > 0:20:50Well done.
0:20:50 > 0:20:54Holding his paddle aloft was the successful buyer, Rick,
0:20:54 > 0:20:58who got this unusual flat for £32,000.
0:20:58 > 0:21:02Rick is an accounts director and he's bought this flat
0:21:02 > 0:21:07with his partner Helen to add to their small rental portfolio.
0:21:07 > 0:21:10And it was marketing manager Helen who navigated her way to
0:21:10 > 0:21:12the latest property purchase
0:21:12 > 0:21:15to tell me their plans for this latest flat.
0:21:17 > 0:21:21# Find what you get there
0:21:24 > 0:21:28# Find what you get there... #
0:21:31 > 0:21:32- Helen, great to meet you.- You too.
0:21:32 > 0:21:35Congratulations. Tell me why you wanted to buy this flat.
0:21:35 > 0:21:39It was just that we were looking for properties that would give us
0:21:39 > 0:21:41a good yield, really.
0:21:41 > 0:21:44If we can gain some capital growth then that's great,
0:21:44 > 0:21:47but that's not our primary aim.
0:21:47 > 0:21:50This property, it's quite close to Manchester city centre,
0:21:50 > 0:21:53it's also close to the university as well.
0:21:53 > 0:21:56And we believe we can get a good rent
0:21:56 > 0:21:59- for, you know, what is a good price. - Right.
0:21:59 > 0:22:02It is an interesting flat, isn't it?
0:22:02 > 0:22:04When you walk into this room, the fact there's no...
0:22:04 > 0:22:08- there is a window, but you're hit by a wall rather than windows.- Yeah.
0:22:08 > 0:22:12- But it's quite a good size.- Yeah, square footage, it's quite good.
0:22:12 > 0:22:16It's a good-sized bedroom, decent living area.
0:22:16 > 0:22:19The fact that it's an old building that's a factory or something
0:22:19 > 0:22:24that's been converted we quite liked, rather than a standard new build.
0:22:24 > 0:22:26So we thought it was a good buy.
0:22:26 > 0:22:29Obviously in a bit of a state at the moment.
0:22:29 > 0:22:31Tell me what you're going to do to sort it out.
0:22:31 > 0:22:35Well, a complete tidy up, refit.
0:22:35 > 0:22:39We're not going to replace the bathroom
0:22:39 > 0:22:41because it's a white suite, it's fine.
0:22:41 > 0:22:44In here, we'll tidy up the kitchen,
0:22:44 > 0:22:48sort out where the wall has been damaged.
0:22:48 > 0:22:51The lights have been pulled out from the ceiling,
0:22:51 > 0:22:57completely repainted, re-carpeted, we'll also be furnishing it as well.
0:22:57 > 0:22:58OK. The carpet doesn't look too bad.
0:22:58 > 0:23:03Yeah, but I think we'll probably just put a wooden floor in here.
0:23:03 > 0:23:07We want it to look contemporary, clean and quite simple.
0:23:07 > 0:23:12- Something that will appeal to maybe a young rental market.- Right.
0:23:12 > 0:23:17Maybe perhaps a couple, or perhaps a student if that's what we get.
0:23:17 > 0:23:19What's the budget for what you plan to do?
0:23:19 > 0:23:23- We aim to spend no more than about 6,000 on it.- OK.
0:23:23 > 0:23:26- That's quite a lot, actually. - Well, I suppose,
0:23:26 > 0:23:27but there's furniture as well.
0:23:27 > 0:23:31So we need to... We have some other rental properties
0:23:31 > 0:23:34and we know that it's better to furnish them,
0:23:34 > 0:23:38- they rent out much easier. - Do they?- In Manchester.
0:23:38 > 0:23:43So, once we've... We need to look at furniture as well.
0:23:43 > 0:23:47So we are aiming to spend about 6,000. Possibly less if we can.
0:23:47 > 0:23:49And then with the fees and everything,
0:23:49 > 0:23:51and what we paid for the property,
0:23:51 > 0:23:54then it brings it in around the 40,000 mark.
0:23:54 > 0:23:59If Rick and Helen can turn the flat around for a grand total of 40,000,
0:23:59 > 0:24:01with the estate agents' predicted rental values
0:24:01 > 0:24:03of 425 per calendar month,
0:24:03 > 0:24:06they could see a yield in excess of 12%,
0:24:06 > 0:24:10which makes this a very decent investment indeed.
0:24:13 > 0:24:17- So, what's the timescale? - Four weeks.- OK. Bing, bang, boom.
0:24:17 > 0:24:20And then let it out through an agency or do it yourself?
0:24:20 > 0:24:24Yeah, we always use an agent to find the tenants for us
0:24:24 > 0:24:27and then we manage the properties ourselves.
0:24:27 > 0:24:29That's what we'll be doing with this.
0:24:29 > 0:24:31Congratulations, good luck with it
0:24:31 > 0:24:34- and we look forward to seeing how you get on.- Thank you.
0:24:34 > 0:24:38Well, at the price she paid, I think Helen's done really well here.
0:24:38 > 0:24:41It may not have quite as many windows as I'd like,
0:24:41 > 0:24:45but still potentially a very profitable investment.
0:24:45 > 0:24:48You can find out how she gets on later in the show.
0:24:49 > 0:24:51Coming up, in Stoke,
0:24:51 > 0:24:55the damp in this mid-terrace has me beating a hasty retreat.
0:24:55 > 0:24:57Ahem! Upstairs!
0:25:00 > 0:25:03But it's not getting out of this Salford one-bedroomed flat
0:25:03 > 0:25:04that's the problem.
0:25:04 > 0:25:06The biggest challenge with this property
0:25:06 > 0:25:09is actually getting into it from outside!
0:25:13 > 0:25:15But first, back to Maidstone, Kent,
0:25:15 > 0:25:18and this rather forlorn three-bed end-terrace
0:25:18 > 0:25:22which Colin bought at auction for 190,000.
0:25:22 > 0:25:24Yours at 190, sir.
0:25:24 > 0:25:28Colin's builder, Andrew, was planning to spend three months
0:25:28 > 0:25:31and between £30,000 and £35,000 doing the property up.
0:25:31 > 0:25:34So, Colin, why have you bought this house?
0:25:34 > 0:25:38Is this an investment opportunity, or is this just to keep you busy?
0:25:38 > 0:25:41To give me something to pop round and see how it's coming along,
0:25:41 > 0:25:43and watch the progress of it.
0:25:43 > 0:25:46And just to keep... Because I'm a pensioner now, Lucy,
0:25:46 > 0:25:48and I don't have much to do.
0:25:48 > 0:25:50I used to be a bingo caller and I had plenty of work,
0:25:50 > 0:25:53but I've got nothing now. No-one wants me any more!
0:25:53 > 0:25:56Oh, I'm not sure about that, Colin,
0:25:56 > 0:25:58because when he wasn't calling bingo,
0:25:58 > 0:26:00Colin was developing property
0:26:00 > 0:26:04ever since he went to his first auction almost 40 years ago now.
0:26:07 > 0:26:09Just over four months after our first visit,
0:26:09 > 0:26:11bingo caller and builder are back.
0:26:11 > 0:26:14But will it still be in a state - 28?
0:26:14 > 0:26:16Or tickety-boo - 62?
0:26:21 > 0:26:25Well, the outside definitely looks spruced up. Wow!
0:26:28 > 0:26:30The hallway is looking bright and new,
0:26:30 > 0:26:32complete with the original banister.
0:26:32 > 0:26:35And as for the kitchen that time forgot...
0:26:35 > 0:26:37Very nice indeed.
0:26:37 > 0:26:41A clean, open-plan look that's perfect for modern living.
0:26:41 > 0:26:44In fact, the whole ground floor has been brought bang up to date
0:26:44 > 0:26:45and I love it.
0:26:45 > 0:26:48The lounge is now much bigger, but they've still managed to keep
0:26:48 > 0:26:50the best of the period features.
0:26:50 > 0:26:52And they've squeezed in a loo and a utility,
0:26:52 > 0:26:57and the kitchen-diner opening out onto the garden is just fantastic.
0:26:57 > 0:27:01And talking of gardens, remember the old bramble-filled jungle?
0:27:01 > 0:27:02Now, that's better,
0:27:02 > 0:27:06although you will have to go to the shops for your blackberries now.
0:27:08 > 0:27:10Upstairs, Andrew and Colin have been very clever.
0:27:10 > 0:27:13They've given the back bedroom an en-suite shower room,
0:27:13 > 0:27:15which is just what it needed.
0:27:15 > 0:27:17The family bathroom is looking swish
0:27:17 > 0:27:20and the old master bedroom has been partitioned
0:27:20 > 0:27:22to give a double and an extra box room.
0:27:25 > 0:27:28And if that's not enough, they've cleared out the cellar
0:27:28 > 0:27:30to create a really useful space down there.
0:27:32 > 0:27:33Colin must be chuffed to bits
0:27:33 > 0:27:36with what the builder Andrew has achieved here!
0:27:37 > 0:27:39It's better than I imagined.
0:27:39 > 0:27:42I didn't think it would turn out anything as lovely as this.
0:27:42 > 0:27:45That's all down to Andrew's...
0:27:45 > 0:27:48thoughts and plans and everything.
0:27:48 > 0:27:49And he's...
0:27:49 > 0:27:51I've got 100% confidence in him.
0:27:51 > 0:27:53So I just give him the keys
0:27:53 > 0:27:56and he just lets me know what it's going to cost and that's it.
0:27:56 > 0:27:58Andrew has played a blinder,
0:27:58 > 0:28:02and the changes he's made to the layout downstairs work a treat.
0:28:04 > 0:28:07The front room, we had that wall across the middle of it
0:28:07 > 0:28:11with the little window serving hatch or whatever it was before.
0:28:11 > 0:28:14So basically, we wanted to extend that area, take the wall out,
0:28:14 > 0:28:16move the wall further back.
0:28:16 > 0:28:18The only problem,
0:28:18 > 0:28:20the hard bit was actually trying to keep
0:28:20 > 0:28:22the old features and the old coving.
0:28:22 > 0:28:25Couldn't find the same kind of coving anywhere,
0:28:25 > 0:28:28so we had to build our own coving, which took a bit of time.
0:28:28 > 0:28:31But I think it turned out all right in the end.
0:28:33 > 0:28:35Another job delayed Andrew's start here,
0:28:35 > 0:28:38hence the slight overrun on the schedule.
0:28:38 > 0:28:41But what about their £30,000 to £35,000 budget?
0:28:41 > 0:28:46Budget in the end was about 43,000, Andrew? 42,000, something like that?
0:28:46 > 0:28:49It was a little bit less than that. Probably about 37.
0:28:49 > 0:28:53- You charged me 41!- No, I didn't! - You dog!- No, I didn't!
0:28:53 > 0:28:57No, I think we're about 30... with the windows and everything.
0:28:57 > 0:29:01- It works out about 37, I think. - Oh, you're right, yeah.
0:29:02 > 0:29:05That's really pretty impressive, and Colin has come up with
0:29:05 > 0:29:09another way of showing his gratitude for Andrew's hard work.
0:29:10 > 0:29:13I'm giving him a little bonus and sending him
0:29:13 > 0:29:17and his wife and his little girl to Las Vegas for a week.
0:29:17 > 0:29:19Just to show my appreciation.
0:29:20 > 0:29:23Nice one, Colin!
0:29:23 > 0:29:26A spend of £37,000 on top of their purchase price
0:29:26 > 0:29:32of 190,000 brings the total spend here to £227,000.
0:29:32 > 0:29:35We asked along two local estate agents to get their thoughts
0:29:35 > 0:29:38on the renovated end terrace.
0:29:38 > 0:29:42First up, the agent who saw the property before they started work.
0:29:42 > 0:29:46It's taken something that I would have described as uninhabitable
0:29:46 > 0:29:48to being a luxurious property.
0:29:48 > 0:29:50This room we're in now I particularly like
0:29:50 > 0:29:52because it's going to be a very sociable room,
0:29:52 > 0:29:55particularly with the lovely fireplace that they've left in place.
0:29:55 > 0:29:59So I think it's got absolutely bags and bags of character,
0:29:59 > 0:30:01excellent for entertaining
0:30:01 > 0:30:04and I think it's therefore going to make a wonderful family home.
0:30:04 > 0:30:06It's a really handsome period house.
0:30:06 > 0:30:08From the outside, it's very characterful
0:30:08 > 0:30:12and inside they've retained a lot of the character features as well.
0:30:12 > 0:30:15But they've also included lots of modern features
0:30:15 > 0:30:17that people do really need these days.
0:30:17 > 0:30:19Great stuff.
0:30:19 > 0:30:21If Colin were to go down the rental route,
0:30:21 > 0:30:26what do they think the end terrace would fetch on the rental market?
0:30:26 > 0:30:28I think if we were to rent this property,
0:30:28 > 0:30:32I would imagine achieving something close to £1,000 per calendar month.
0:30:32 > 0:30:36I would estimate this value to be £1,100 per calendar month.
0:30:36 > 0:30:38The estate agents' rental evaluations
0:30:38 > 0:30:43would give a decent yield of between 5% and 6%.
0:30:43 > 0:30:48Colin's plan is to sell on, so what about those resale evaluations?
0:30:48 > 0:30:52I would estimate that the value of this property is £260,000.
0:30:52 > 0:30:58I would anticipate it selling for something between 260 and £270,000.
0:30:58 > 0:31:02I think we can achieve at least 280,000.
0:31:02 > 0:31:05I've had chats with various estate agents round here
0:31:05 > 0:31:07and they're all in agreement with that.
0:31:09 > 0:31:11The evaluations from the agents we spoke to
0:31:11 > 0:31:15would give Colin a healthy profit before tax and expenses
0:31:15 > 0:31:19of between 33 and £43,000.
0:31:19 > 0:31:24- So, is it back to the auction for Colin any time soon?- Oh, yes!
0:31:24 > 0:31:27This time next week I shall be at the old auction,
0:31:27 > 0:31:31bidding for another large detached house in its own piece of land.
0:31:31 > 0:31:33And I will employ Andrew again,
0:31:33 > 0:31:37and again, I hope Homes Under The Hammer come round and film me.
0:31:37 > 0:31:41And Lucy and I can have another cup of tea together.
0:31:41 > 0:31:44And I can relive fond memories.
0:31:44 > 0:31:47Oh, Colin! I can't wait. Hopefully I'll see you soon.
0:31:56 > 0:32:01This is Bucknell, one of the suburbs of Stoke-on-Trent,
0:32:01 > 0:32:04or Stoke, as it's more commonly known.
0:32:04 > 0:32:08Originally six industrial villages, basically,
0:32:08 > 0:32:12the Potteries amalgamated together in 1910
0:32:12 > 0:32:15under the slogan "vis unita fortior" -
0:32:15 > 0:32:18united strength is stronger.
0:32:18 > 0:32:21# Oh, united we stand
0:32:21 > 0:32:24# Divided we fall
0:32:25 > 0:32:29# And if our backs should ever be against the wall
0:32:29 > 0:32:33# We'll be together
0:32:33 > 0:32:37# Together, you and I... #
0:32:41 > 0:32:44Well, if guide prices are anything to go by,
0:32:44 > 0:32:48the property I'm here to see, um... Well, it's going to be interesting.
0:32:48 > 0:32:52£25,000 plus, two-bedroomed terraced,
0:32:52 > 0:32:56it doesn't look too bad from the outside.
0:32:56 > 0:32:58I'm sure it'll be just peachy in!
0:32:58 > 0:33:02# Together, you and I. #
0:33:02 > 0:33:07Oh, well, ever hopeful. What have we got? Well, um...
0:33:09 > 0:33:11It's one of those properties, you walk through the front door
0:33:11 > 0:33:14and straightaway you're greeted by, well,
0:33:14 > 0:33:16a property that clearly is in need of a bit of work.
0:33:16 > 0:33:21Signs of quite serious damp on that wall, very dated.
0:33:21 > 0:33:24Floors feel a bit uneven, which is a bit of a worry.
0:33:24 > 0:33:26In fact, there's some tiling there
0:33:26 > 0:33:29which looks like it's going down a bit, which is not good.
0:33:29 > 0:33:30Into the back, again,
0:33:30 > 0:33:36all the internal walls seem to be showing signs of quite bad damp.
0:33:36 > 0:33:40Oh, my goodness me! Over here, look at this. By this window.
0:33:40 > 0:33:43We've got... Yeah. Everything is coming off.
0:33:43 > 0:33:46One of the things you'd have to do is strip off the plaster anyway,
0:33:46 > 0:33:50so maybe the fact that it's in such a state saves you a bit of a job.
0:33:50 > 0:33:52But a good-sized front room.
0:33:52 > 0:33:55Rear room, I mean, it's a very classic layout.
0:33:55 > 0:33:58This kind of house, originally a two-up, two-down.
0:33:58 > 0:34:00Yeah, just needs a bit of work.
0:34:02 > 0:34:04Oops! Make that a LOT of work.
0:34:06 > 0:34:09Off the back of this middle room is the kitchen, which clearly needs...
0:34:09 > 0:34:12How shall I put it? A bit of an update.
0:34:14 > 0:34:15Onwards and upwards.
0:34:18 > 0:34:23So, upstairs, no great surprises in terms of the layout.
0:34:23 > 0:34:25Turn right to go to one bedroom, turn left to go to the other.
0:34:25 > 0:34:27They're a good size.
0:34:27 > 0:34:31Obviously, like the rest of the house, in need of some attention.
0:34:31 > 0:34:36But the big question is, where is the bathroom? It's not downstairs.
0:34:36 > 0:34:37It's not upstairs. Nope.
0:34:39 > 0:34:40Really...
0:34:41 > 0:34:43..it's at the bottom of the garden.
0:34:45 > 0:34:50Out back is the dunny, as they say in the outback, and an outside loo
0:34:50 > 0:34:54may feel as far away as Australia if you've got to go on a chilly day.
0:34:55 > 0:34:59But worse than that, no bathroom probably means no mortgage,
0:34:59 > 0:35:01so cash buyers only, please.
0:35:02 > 0:35:04That said, I do see a glimmer of hope.
0:35:05 > 0:35:09Well, at the rear of the property here there is actually some
0:35:09 > 0:35:11very good news.
0:35:11 > 0:35:14No, it's not the state of the outbuildings or
0:35:14 > 0:35:17the size of the garden, although that is quite nice.
0:35:17 > 0:35:21First of all, I would say, a great opportunity in terms of an extension
0:35:21 > 0:35:27is to extend the kitchen this way to create the much-needed bathroom.
0:35:27 > 0:35:31That said, once you've done that, the really good news is that,
0:35:31 > 0:35:34at the bottom, there is an access road,
0:35:34 > 0:35:38so you could do what next door have done, put a set of gates, provide
0:35:38 > 0:35:42off-street parking, and that really is a big bonus for this house.
0:35:44 > 0:35:46Plenty to do both outside and in,
0:35:46 > 0:35:50but I think this place has the potential to be a cracking home.
0:35:52 > 0:35:56We asked along an expert from the auction house that sold it,
0:35:56 > 0:35:57to get his thoughts.
0:35:58 > 0:36:01First impressions of this property is that it does require a full
0:36:01 > 0:36:06modernisation and refurbishment from top to bottom, really.
0:36:06 > 0:36:11And it would appeal more to a builder with experience rather than,
0:36:11 > 0:36:13you know, a first-time project.
0:36:15 > 0:36:17Once done up, what does he think
0:36:17 > 0:36:19that the mid-terrace might rent out for?
0:36:21 > 0:36:23I would anticipate a rental income
0:36:23 > 0:36:26in the region of £450 per calendar month.
0:36:26 > 0:36:31And bearing in mind the auction guide price of £25,000 plus,
0:36:31 > 0:36:35what does he think the refurbished property might sell for?
0:36:35 > 0:36:37After the works, I would anticipate
0:36:37 > 0:36:40a re-sale value in the region of £80,000.
0:36:43 > 0:36:45Well, that guide price is certainly very appealing
0:36:45 > 0:36:47but a lot of people would have been put off
0:36:47 > 0:36:49by the state of the property.
0:36:49 > 0:36:52But you've got to look through that to what this house could become,
0:36:52 > 0:36:54and I think it's got a lot going for it.
0:36:54 > 0:36:56Let's see who agreed, when it went under the hammer.
0:36:59 > 0:37:02Lot number six is in Bucknell.
0:37:02 > 0:37:05It's a two-bedroom mid-terrace, and it does need modernising.
0:37:05 > 0:37:08So, lot number six, 20 to start me on this?
0:37:10 > 0:37:1218, then? Can we start it at 18?
0:37:12 > 0:37:1418 right in the middle, thank you.
0:37:14 > 0:37:17At £18,000. 20 can I say now?
0:37:17 > 0:37:1820 left, at 20 left.
0:37:18 > 0:37:2122? 22. 24? No.
0:37:21 > 0:37:23At 22 in the middle, 24 anywhere else?
0:37:23 > 0:37:25At 22 in the middle.
0:37:25 > 0:37:2824 anywhere else? 24.
0:37:28 > 0:37:3026? 26,000. 28?
0:37:32 > 0:37:36No, at 26,000, still in the middle, 28 anywhere else?
0:37:36 > 0:37:38Do you want to go one, make it 27?
0:37:39 > 0:37:4127. 28?
0:37:43 > 0:37:4628. Another one? No?
0:37:46 > 0:37:49At £28,000, the bid's right in the middle at £28,000.
0:37:50 > 0:37:5229 in the middle again, 29.
0:37:54 > 0:37:5630.
0:37:56 > 0:37:5931? No? At 30.
0:37:59 > 0:38:01Still with you, sir, in the middle, at 30,000.
0:38:01 > 0:38:05All done now? £30,000 for the first time.
0:38:06 > 0:38:0830-and-a-half, you say?
0:38:08 > 0:38:1030-and-a-half. 31, sir.
0:38:10 > 0:38:1231, half.
0:38:12 > 0:38:14Two. No?
0:38:14 > 0:38:17Still with you. 32,000, right in the middle.
0:38:17 > 0:38:19All done now? 32,000.
0:38:19 > 0:38:23New bidder right at the back now. 32,500.
0:38:23 > 0:38:2533.
0:38:25 > 0:38:2833,500.
0:38:28 > 0:38:30On the phone, 34.
0:38:30 > 0:38:3134.
0:38:32 > 0:38:3534,500.
0:38:35 > 0:38:3835.
0:38:38 > 0:38:42Shaking his head, still with you on the phone, £35,000.
0:38:42 > 0:38:43All done now?
0:38:43 > 0:38:4535,000 once.
0:38:45 > 0:38:4735,000 twice.
0:38:47 > 0:38:50Third and last time, at £35,000.
0:38:51 > 0:38:52Well done.
0:38:52 > 0:38:56Cheek by jowl with the under-bidder was Kevin,
0:38:56 > 0:39:01with a successful bid of 35,000, well over the £25,000 guide price.
0:39:01 > 0:39:04Kevin and his wife Jackie have recently turned to
0:39:04 > 0:39:08developing property full time and are building a portfolio.
0:39:08 > 0:39:10I met them back at the mid-terrace.
0:39:11 > 0:39:15- Kevin, Jackie, great to meet you both.- And you.- Congratulations.
0:39:15 > 0:39:20- Thank you very much.- You look very happy.- I am!- Well done!
0:39:20 > 0:39:22Now, there are people who would have stumbled on this place
0:39:22 > 0:39:25and thought, "Blimey, what a lot of work to do," but no?
0:39:25 > 0:39:28Yeah, there is a lot of work to do.
0:39:28 > 0:39:30We've, er...
0:39:30 > 0:39:33We came and viewed it first, erm...
0:39:33 > 0:39:37- We knew what state it was in and it doesn't faze us.- Right.- So, we're...
0:39:39 > 0:39:41- It's a blank canvas. - Makes it easier when it's like this.
0:39:41 > 0:39:45If you're going to strip it back to brickwork, it's easier.
0:39:45 > 0:39:48- It makes it easier when it's like this.- Yeah.
0:39:48 > 0:39:50Wow, what a positive outlook. Quite right too.
0:39:50 > 0:39:53But this is going to be, do it up and rent it out, is it?
0:39:53 > 0:39:56That's the plan, yeah, initially.
0:39:56 > 0:39:59Great. So have you done anything like this before?
0:39:59 > 0:40:02Erm, this will be our third property now.
0:40:02 > 0:40:06- We've, er, we've currently got one that we rent...- Hmm.
0:40:06 > 0:40:10..erm, one that we're just finishing off, and this is the third project.
0:40:10 > 0:40:14Wow. So tell me what you are going to do to sort it out, then?
0:40:14 > 0:40:18The first job we need to do is make it watertight and secure.
0:40:18 > 0:40:20There'll be a roof, doors and windows.
0:40:20 > 0:40:26Erm, we'll then start stripping it back to brickwork, ceilings down...
0:40:26 > 0:40:28- Chimney's coming out. - Chimney out.- Oh, really, what?
0:40:28 > 0:40:31- The chimney breast? - Yeah, out of this room.- Right.
0:40:31 > 0:40:35Erm, keeping the main one in the living room but I don't know whether
0:40:35 > 0:40:41- you've noticed as yet, but there's a bathroom missing in the house.- Yeah!
0:40:41 > 0:40:44- It was one of the things I was quite surprised about.- Yeah!
0:40:44 > 0:40:50So, we plan on converting the kitchen at the moment into the bathroom,
0:40:50 > 0:40:52moving the kitchen into...
0:40:52 > 0:40:56- Having a kitchen-diner here. - ..this second sitting room.- Ah!
0:40:56 > 0:40:59Erm, changing the access for the stairs and living room.
0:40:59 > 0:41:00- Swapping the door over.- OK.
0:41:00 > 0:41:02Erm, and then the possibility of
0:41:02 > 0:41:05putting an en suite upstairs as well in one of the bedrooms.
0:41:06 > 0:41:09Interesting. I'd assumed Kevin and Jackie would put
0:41:09 > 0:41:12the bathroom in a new extension beyond the kitchen,
0:41:12 > 0:41:13but their layout of sitting room,
0:41:13 > 0:41:17new kitchen-diner and the bathroom where the kitchen is now
0:41:17 > 0:41:19could work really well.
0:41:19 > 0:41:20And while I'm not sure
0:41:20 > 0:41:24if an en suite upstairs is strictly necessary in a house this size,
0:41:24 > 0:41:27it certainly beats the current al fresco arrangement.
0:41:28 > 0:41:30So who does the work?
0:41:30 > 0:41:33Er, I'll be doing the majority of the work myself.
0:41:33 > 0:41:37Erm, obviously getting the specialist trades in, the electricians,
0:41:37 > 0:41:41- erm...- I do a lot of tiling. - Plumbing.- Tiling?
0:41:41 > 0:41:44- Tiling, grouting.- Jackie'll come in and do the...- The flooring.
0:41:44 > 0:41:48Yeah, do the finishing touches, she's a dab hand with the paintbrush.
0:41:48 > 0:41:50- Great. Well, more than just a paintbrush, it seems!- Yeah.
0:41:50 > 0:41:55The tiling, grouty thing and whatever.
0:41:55 > 0:41:56So what is the timescale?
0:41:56 > 0:41:59- Erm, we've set it initially at six months.- Yeah.
0:41:59 > 0:42:02We think that's achievable based on the last couple that we've...
0:42:02 > 0:42:04But we have still got to finish one off, so...
0:42:04 > 0:42:08- And what about budget?- Erm...
0:42:08 > 0:42:14That's about 15,000, with an extra five, you know, just in case,
0:42:14 > 0:42:17when we go up into the roof or...
0:42:17 > 0:42:21And if the joists or the roof timbers need replacement...
0:42:21 > 0:42:23Just as a contingency, isn't it?
0:42:25 > 0:42:28That is a generous budget, and Jackie, who has
0:42:28 > 0:42:32a background in accountancy, will be looking after the purse strings.
0:42:32 > 0:42:35But despite Jackie's financial savvy,
0:42:35 > 0:42:37the couple nearly came a cropper
0:42:37 > 0:42:40when they decided to bid for this property at the 11th hour.
0:42:42 > 0:42:44I remortgaged one of the other properties,
0:42:44 > 0:42:48but obviously, because we saw this very last minute,
0:42:48 > 0:42:51on the Thursday before it went to auction on the Monday,
0:42:51 > 0:42:53it was quite a short timescale
0:42:53 > 0:42:56to get the mortgage sorted, get it valued,
0:42:56 > 0:42:59and the money actually came through on the Monday morning,
0:42:59 > 0:43:03this Monday, where we had to complete Monday lunchtime,
0:43:03 > 0:43:05so a few sleepless nights.
0:43:05 > 0:43:07Wow, cos you couldn't get a mortgage
0:43:07 > 0:43:09on this particular place in the state it's in,
0:43:09 > 0:43:11so you remortgaged another property?
0:43:11 > 0:43:14What would have happened if that had fallen through,
0:43:14 > 0:43:16if that remortgage had fallen through?
0:43:16 > 0:43:21I'd got three friends in place, all to donate a little bit of money
0:43:21 > 0:43:24- until it came through.- Really?
0:43:24 > 0:43:29That was why, on the day of the auction, Jackie wasn't there,
0:43:29 > 0:43:34but I was busily bidding, but at the same time on the phone to Jackie
0:43:34 > 0:43:36making sure that we got the funds.
0:43:36 > 0:43:38- But you didn't have the funds!- No.
0:43:38 > 0:43:40No, it's number one rule of buying at auction!
0:43:40 > 0:43:44You have to have the funds in place before you bid!
0:43:44 > 0:43:48Yeah, it was a low value so we knew we could get it,
0:43:48 > 0:43:51even if it went on the credit card for a few weeks.
0:43:51 > 0:43:52Buy a house on the credit card, yeah!
0:43:53 > 0:43:56For the record, here at Homes Under The Hammer, we don't recommend
0:43:56 > 0:44:00buying property on a credit card, even if it is just for a few weeks!
0:44:04 > 0:44:07Well, it's going to be a transformation, that's for sure.
0:44:07 > 0:44:11- Mm-hm, it will. It will.- Can't wait to see it. Listen, congratulations.
0:44:11 > 0:44:13- Thank you.- Best of luck. - Thank you very much.
0:44:13 > 0:44:16Look forward to seeing you in a few months.
0:44:16 > 0:44:18MARTIN LAUGHS
0:44:19 > 0:44:22Well, Kevin and Jackie did break one of the golden rules
0:44:22 > 0:44:26about buying at a property auction, and that is that you
0:44:26 > 0:44:31have to have your finances sorted out before you make your bid.
0:44:31 > 0:44:32Really important.
0:44:32 > 0:44:36That said, they seem remarkably unfazed about sorting this place out,
0:44:36 > 0:44:39lots of enthusiasm, lots of smiles.
0:44:39 > 0:44:42Let's see how they get on. You can find out later in the show.
0:44:45 > 0:44:49Well, time waits for no man. The weeks and months have passed.
0:44:49 > 0:44:52Have those properties turned from ugly ducklings into swans?
0:44:52 > 0:44:54Well, let's go back and find out.
0:44:56 > 0:45:00It was in the City of Salford, Greater Manchester, where we
0:45:00 > 0:45:02came across this grand old building.
0:45:02 > 0:45:07Built in 1860 for the Pendleton Co-operative Industrial Society,
0:45:07 > 0:45:09this former office and warehouse block
0:45:09 > 0:45:12had been converted into modern apartments and flats,
0:45:12 > 0:45:15and it was a one-bedroom apartment at the top of the building
0:45:15 > 0:45:17that we'd come to see,
0:45:17 > 0:45:19though finding it was easier said than done.
0:45:22 > 0:45:24But once you'd navigated your way to the flat,
0:45:24 > 0:45:27you found a place that had been bashed about a bit,
0:45:27 > 0:45:31with holes in the walls and signs of vandalism
0:45:31 > 0:45:34but, underneath, actually quite a decent space.
0:45:37 > 0:45:41It was bought for £32,000 by Rick and his partner Helen,
0:45:41 > 0:45:44to add to their small rental portfolio.
0:45:44 > 0:45:48Are you going to give whoever rents it a sat nav to find their way in?
0:45:48 > 0:45:51Yeah! Yeah, it is quite interesting...
0:45:51 > 0:45:55Left, right, through door, corridor, down, upstairs, round the corner...
0:45:55 > 0:45:58Yeah, yeah, it's... Yeah, it's quite difficult to find, yeah.
0:45:58 > 0:46:02But having found the flat, marketing manager Helen was
0:46:02 > 0:46:05hoping to turn it round in just four weeks,
0:46:05 > 0:46:08and on a budget of £6,000.
0:46:08 > 0:46:11Now, nearly three-and-a-half months later, we're back with Helen
0:46:11 > 0:46:13so we can find out how she got on.
0:46:14 > 0:46:18# Baby, now that I've found you
0:46:18 > 0:46:20# I won't let you go
0:46:20 > 0:46:23# I've built my world around you... #
0:46:23 > 0:46:27Firstly, that hallway with doors in all the wrong places...
0:46:29 > 0:46:32..has been replaced by a welcoming entrance hall.
0:46:32 > 0:46:35The lounge has been transformed with neutral colours
0:46:35 > 0:46:38and sleek wooden flooring.
0:46:39 > 0:46:41The kitchen has been completely revamped
0:46:41 > 0:46:44and is now part of a comfortable kitchen-diner.
0:46:52 > 0:46:55With a rejuvenated bedroom
0:46:55 > 0:46:59and a refreshed bathroom, the flat is certainly in a better
0:46:59 > 0:47:03condition than it was when we last found it.
0:47:04 > 0:47:06And we had to do quite a bit of repair work
0:47:06 > 0:47:09because the property had had some vandalism to it - holes
0:47:09 > 0:47:13in the walls and doors off, wiring pulled out, those kind of things.
0:47:13 > 0:47:17So once we got those problems sorted, we've painted throughout,
0:47:17 > 0:47:22we've put new flooring down, we've replaced the kitchen appliances
0:47:22 > 0:47:23and the kitchen cupboards.
0:47:23 > 0:47:26We then utilised the existing carcasses.
0:47:26 > 0:47:29The bathroom has had a complete clean.
0:47:29 > 0:47:31New carpet in the bedroom.
0:47:31 > 0:47:33And we furnished the property.
0:47:33 > 0:47:36So, all pretty straightforward, really.
0:47:36 > 0:47:39There was a delay in sorting out a builder to do the work
0:47:39 > 0:47:43and a busy home life meant that the project has
0:47:43 > 0:47:47overrun by a couple of months, but overall, it wasn't too taxing.
0:47:47 > 0:47:49The biggest challenge, really,
0:47:49 > 0:47:53with this property is actually getting into it from outside.
0:47:53 > 0:47:56It's a bit of a rabbit warren to find.
0:47:56 > 0:48:00Also, when some of the work was being carried out, the lift was broken.
0:48:00 > 0:48:04So when, you know, carrying the fridge and, you know, flooring
0:48:04 > 0:48:08and that kind of stuff up to the flat, that was a bit of a problem.
0:48:08 > 0:48:12But apart from that, we have not really had any issues.
0:48:12 > 0:48:15Yes, it is actually as straightforward as it gets,
0:48:15 > 0:48:19no structural changes, just some cleaning and tidying up,
0:48:19 > 0:48:21and really just a good make over.
0:48:21 > 0:48:25Some dressing as a final flourish and job done.
0:48:25 > 0:48:27But at what cost?
0:48:27 > 0:48:30Originally, we estimated 6,000
0:48:30 > 0:48:36and we have ended up spending 3,700 on the actual renovations
0:48:36 > 0:48:40and the furniture, and about £1,300 in fees.
0:48:40 > 0:48:43So it has taken us up to a £5,000 spend.
0:48:46 > 0:48:48And having bought the flat
0:48:48 > 0:48:51at auction for £32,000,
0:48:51 > 0:48:53a five-grand spend will take their all-in costs
0:48:53 > 0:48:56to 37,000.
0:48:56 > 0:49:00But what did two local property experts make of the renovation?
0:49:00 > 0:49:04First up, the expert who saw the flat before work began.
0:49:04 > 0:49:07When we first looked at the property, it had been vandalised.
0:49:07 > 0:49:10I think it had been broken into. It was in a very poor state of repair.
0:49:10 > 0:49:13The property has obviously been fully repaired, modernised
0:49:13 > 0:49:14and refurbished throughout.
0:49:14 > 0:49:16First impressions were quite good, to be honest.
0:49:16 > 0:49:19It is probably one of the best ones that we have
0:49:19 > 0:49:20in the block at the moment.
0:49:20 > 0:49:22They do seem to have spent a lot of time and effort
0:49:22 > 0:49:23to attention to detail, which is
0:49:23 > 0:49:26what a lot of investors don't tend to do these days.
0:49:26 > 0:49:29The standard is perfectly acceptable for the market that we are in.
0:49:29 > 0:49:32What you don't want to do with a property like this is overspend.
0:49:32 > 0:49:36For the area, it is clean, it is modern, it is presentable, and
0:49:36 > 0:49:39that is exactly the type of property that tenants are looking for.
0:49:39 > 0:49:42Helen and Rick really bought this as a rental property
0:49:42 > 0:49:45and aren't immediately looking to sell it on, but what
0:49:45 > 0:49:50could their £37,000 investment be worth on the open market?
0:49:50 > 0:49:56I would value this property for open market sale at £50,000 to £55,000.
0:49:56 > 0:49:58If I was going to put the property on the open market,
0:49:58 > 0:50:03I would expect to achieve between £50,000 and £55,000.
0:50:03 > 0:50:07That's a potential profit of £13,000 to £18,000.
0:50:07 > 0:50:09What does Helen think about that?
0:50:09 > 0:50:12I'm really happy, yeah. I mean, you know,
0:50:12 > 0:50:16sort of to get capital growth was never really our intention,
0:50:16 > 0:50:20but to hear that, you know, we have also increased in value,
0:50:20 > 0:50:22then that is really good, yeah.
0:50:22 > 0:50:26Yes, there might be a profit up for grabs on the resale market,
0:50:26 > 0:50:28but for Rick and Helen it is all about rental.
0:50:28 > 0:50:31The rental market is very buoyant.
0:50:31 > 0:50:34There is a very active demand for properties like this
0:50:34 > 0:50:39and I would expect this property to let for £425 per calendar month.
0:50:39 > 0:50:41The rental market is quite strong in Salford.
0:50:41 > 0:50:44If I were to put it on the market, I would be expecting to achieve
0:50:44 > 0:50:48£425 per calendar month to £450 per calendar month.
0:50:48 > 0:50:52When we went into it, we were sort of hoping for about £400
0:50:52 > 0:50:56a month, but since doing our research and looking at what else is
0:50:56 > 0:51:00available, we were hoping that we might be able to sort of get 450.
0:51:00 > 0:51:03But if we sort of got around the 430,
0:51:03 > 0:51:05then we would be really happy.
0:51:05 > 0:51:10Well, even the lower monthly rent of £425 per calendar month
0:51:10 > 0:51:14would generate a yield of over 13%.
0:51:14 > 0:51:17Wow, that is some return.
0:51:17 > 0:51:19I'm guessing Helen is keen to do more.
0:51:21 > 0:51:24The plan is to look for another rental property,
0:51:24 > 0:51:26probably similar to this, you know,
0:51:26 > 0:51:29sort of in the areas that hug Manchester city centre
0:51:29 > 0:51:34but don't quite demand the prices that a city-centre apartment would.
0:51:34 > 0:51:35And longer term.
0:51:35 > 0:51:37I think, yeah, we would like to retire and move abroad.
0:51:37 > 0:51:42So I suppose, hopefully, eventually, we will have enough properties
0:51:42 > 0:51:46to sell to, you know, release some capital and be able to do that.
0:51:51 > 0:51:53So, a future in the sun for Helen,
0:51:53 > 0:51:57but are the prospects as bright for this mid-terrace in Stoke?
0:51:57 > 0:52:03Husband-and-wife team Kevin and Jackie bought it for £35,000,
0:52:03 > 0:52:07complete with leaky roof and its fair share of damp patches.
0:52:07 > 0:52:09And that was far from all.
0:52:09 > 0:52:12I don't know whether you've noticed as yet,
0:52:12 > 0:52:14there is a bathroom missing in the house.
0:52:14 > 0:52:18Yeah, it was one of the things that I was quite surprised about.
0:52:18 > 0:52:22We plan on converting the kitchen at the moment into the bathroom,
0:52:22 > 0:52:26moving the kitchen into the second sitting room.
0:52:26 > 0:52:27- Oh.- Here.
0:52:27 > 0:52:30The possibility of putting in an en suite upstairs as well,
0:52:30 > 0:52:32in one of the bedrooms.
0:52:32 > 0:52:34Kevin and Jackie were planning to spend six months
0:52:34 > 0:52:38and around £15,000 re-digging the layouts
0:52:38 > 0:52:42of the mid-terrace and creating off-road parking at the rear.
0:52:42 > 0:52:46Almost eight months after our first visit, we are back to see if they
0:52:46 > 0:52:51have tamed the jungle outside and got their teeth into the interior.
0:52:51 > 0:52:55# I got the eye of the tiger
0:52:55 > 0:52:57# The fire
0:52:57 > 0:52:59# Dancing through the fire
0:52:59 > 0:53:02# Cos I am a champion
0:53:02 > 0:53:06# And you're going to hear me roar
0:53:06 > 0:53:10# Louder, louder than a lion
0:53:10 > 0:53:13# Cos I am a champion
0:53:13 > 0:53:18# And you are going to hear me ro-o-o-o-ar! #
0:53:18 > 0:53:21A great job on the inside, and out back,
0:53:21 > 0:53:24things are looking neat and welcoming.
0:53:24 > 0:53:28# You're going to hear me roar! #
0:53:30 > 0:53:32Well done, Jackie and Kevin.
0:53:32 > 0:53:34We came into it with our eyes open.
0:53:34 > 0:53:36We knew that it was,
0:53:36 > 0:53:39- um, dilapidated, it was...- Derelict.
0:53:39 > 0:53:42Almost falling down.
0:53:42 > 0:53:44But really pleased with the final result.
0:53:44 > 0:53:49And so they should be. The top priority was to fix the roof,
0:53:49 > 0:53:51and not only would that sort out the damp problems,
0:53:51 > 0:53:55it had another very welcome bonus.
0:53:55 > 0:53:58Within probably the first week of buying it,
0:53:58 > 0:54:02we got somebody in to do the roof. At the same time,
0:54:02 > 0:54:05they realised that there was problems with the roof next door,
0:54:05 > 0:54:07which it was adjoined to.
0:54:07 > 0:54:11So then we met the neighbours, Cynthia and Les.
0:54:11 > 0:54:13Lovely couple.
0:54:13 > 0:54:17And from then on, they've been around a few times a day,
0:54:17 > 0:54:21- providing coffees and bacon sandwiches.- Yep.
0:54:21 > 0:54:25They've been absolute brilliant, so whoever moves in,
0:54:25 > 0:54:28they're going to have really, really good neighbours.
0:54:28 > 0:54:30Great stuff.
0:54:30 > 0:54:35With the source of damp addressed, they could re-jig the layout.
0:54:35 > 0:54:39The family bathroom, where the old kitchen was, works a treat.
0:54:39 > 0:54:41The new kitchen-diner also works well.
0:54:41 > 0:54:45And it is just a small thing, but moving the stair access
0:54:45 > 0:54:49from the new kitchen into the sitting room was a stroke of genius.
0:54:49 > 0:54:53Changes afoot upstairs, too.
0:54:53 > 0:54:56As you can see, we've added an upstairs WC.
0:54:56 > 0:54:59It had not got a bathroom at all, originally,
0:54:59 > 0:55:01so we have put a bathroom downstairs
0:55:01 > 0:55:07and we decided it was important to have a WC at least upstairs.
0:55:07 > 0:55:09So we are very pleased with it.
0:55:09 > 0:55:12And you can see that it has not taken that much
0:55:12 > 0:55:13room off the second bedroom.
0:55:13 > 0:55:18We have also been left with a small storage area where you can
0:55:18 > 0:55:21add a wardrobe or perhaps a set of drawers with a TV.
0:55:21 > 0:55:24So overall, we are really pleased with it.
0:55:24 > 0:55:29Jackie took on the role of project manager on this one, with Kevin
0:55:29 > 0:55:33ably assisted by his dad Eric on site, getting their hands dirty.
0:55:35 > 0:55:37I couldn't have done it without him.
0:55:37 > 0:55:41He has been retired now for 17 years.
0:55:41 > 0:55:44But he was still here every day.
0:55:44 > 0:55:48- I let him off occasional days for a game of golf, didn't I?- Yeah.
0:55:48 > 0:55:49But he was...
0:55:49 > 0:55:52He was putting myself to shame, filling skips,
0:55:52 > 0:55:57digging out in the back garden, rebuilding brick walls and helping
0:55:57 > 0:56:02me out on all the building and demolition work that we needed to do.
0:56:02 > 0:56:04Good old Dad.
0:56:04 > 0:56:07They had to finish another property first, but the work here has
0:56:07 > 0:56:11only just gone over the planned six-month timescale.
0:56:11 > 0:56:14But what about their £15,000 budget?
0:56:15 > 0:56:21We have spent approximately 17,000.
0:56:21 > 0:56:26£17,000 on top of the purchase price of £35,000
0:56:26 > 0:56:29brings their total spend here to £52,000.
0:56:32 > 0:56:35We asked along two local property experts to see what
0:56:35 > 0:56:37they make of the transformation.
0:56:37 > 0:56:38The owners have done
0:56:38 > 0:56:41an excellent job refurbishing it
0:56:41 > 0:56:43right the way through, from top to bottom.
0:56:43 > 0:56:45And what about outside?
0:56:45 > 0:56:48The back yard has been tidied up substantially.
0:56:48 > 0:56:50Nice lawned area.
0:56:50 > 0:56:52And they have dropped the kerb at the back,
0:56:52 > 0:56:56which has created some off-road parking, which everyone likes.
0:56:56 > 0:57:00What do they think the mid-terrace could fetch on the rental market?
0:57:00 > 0:57:04We'd ask somewhere around £400 per calendar month.
0:57:04 > 0:57:08The other agent thinks it could fetch
0:57:08 > 0:57:10as much as £450 per calendar month,
0:57:10 > 0:57:15but both agents agreed on a resale valuation of £80,000.
0:57:19 > 0:57:21Food for thought, there.
0:57:21 > 0:57:24The rental valuations could mean a very healthy
0:57:24 > 0:57:29yield of around the 10% mark, or the resale valuation could mean
0:57:29 > 0:57:34an equally healthy profit before tax and expenses of £28,000.
0:57:34 > 0:57:37So, what to do with the mid-terrace?
0:57:37 > 0:57:42It might even be worth trialling the market for a sale and then,
0:57:42 > 0:57:45if nothing comes of it, or you don't quite get the price that you're
0:57:45 > 0:57:49after, then we'll go back to the original plan of renting it.
0:57:49 > 0:57:54Either way, there is good yield in the rental market as well there,
0:57:54 > 0:57:56- so it's... Yeah.- Yeah.
0:57:56 > 0:57:59- It's a winner both ways, isn't it? - Mm-hm.
0:58:01 > 0:58:04We'll have plenty more auction properties for you next time
0:58:04 > 0:58:05on Homes Under The Hammer.
0:58:05 > 0:58:08Yes, join us as we discover what happens behind the scenes after
0:58:08 > 0:58:10the hammer comes crashing down.
0:58:10 > 0:58:12- We'll see you then.- Goodbye.- Bye.