Episode 38 Homes Under the Hammer


Episode 38

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Transcript


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Hello and welcome to the programme.

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Even in this competitive market,

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-Martin and I love dabbling in property.

-Yes, and we love the idea

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of getting a good deal.

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But it's not always easy.

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One way you still stand a good chance, though,

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is to buy your home under the hammer.

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Now, buying under the hammer is becoming increasingly popular.

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Millions of pounds worth of property sold every month.

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So, here are three properties that were sold at auction.

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In Cumbria, I'm considering a lot of options.

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I'm thinking about all the potential uses for this house,

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and there are many.

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At this semi in Kent, there's plenty of potential, too.

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How many cars could you park on here, I wonder?

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And in Chorley, Lancashire,

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there's more than enough room to do whatever you want.

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Uh, it's all a bit sparse, isn't it?

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All these properties have been sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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I'm in Seascale, on the Cumbrian coast.

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Many of the names around here have Norse origins,

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after Norseman retreating from King Harald Fairhair

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settled this lovely coastline.

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It's believed that this town's name

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originates from the Norse word skali,

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meaning shelter and wooden hut.

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Well, the property I'm here to see

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is definitely more than a wooden hut.

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In fact, it's almost a mansion.

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It's this detached house, double-fronted, over three floors.

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It's got four reception rooms, eight bedrooms, a garden room

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and there's flat at the back, all for a guide price of £110,000 plus.

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King Harald Fairhair would be impressed.

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So we know it's going to be big, but how is it laid out?

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Well, nice, large entrance, as you'd hope for.

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A big sort of reception room over that way

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and an equally big one over that way.

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Straight away, I'm thinking about all the potential uses

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for this house, and there are many.

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Off this hallway, there are three reception rooms

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listed as a lounge, sitting room and dining room.

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But it looks like one of them has previously been a bedroom,

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which suggests this was a house of a multiple occupancy previously.

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A good-sized kitchen with lots of light.

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You could imagine a big table in here for a family to use.

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Or maybe even big enough to serve hotel guests. Hmm.

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And that's just the ground floor.

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I'm going to finally explore the first floor.

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Up here, nice landing area. A room there, your first of your bedrooms.

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And then, through this way, really interesting kind of layout.

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And I think this house has lots of hidden features

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just waiting to be discovered.

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It's nice that some of the fireplaces are still there.

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It's got double glazing, but it looks fairly old,

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so I don't know if that's due for replacement.

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But the layout here is quite interesting,

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cos you've got that room there

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and then you come through to this extra bedroom here.

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To create an extra room, you might want to separate those off.

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But then this leads back out into a little landing area.

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Um... Another really good-sized room there.

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I mean, absolutely amazing.

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Enough room to potentially put on an en suite in that.

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And here - bathroom, shower room.

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Bff... Wow!

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I just love the scale of this house. The rooms are all a fantastic size.

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Can this amazing property continue to surprise?

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So, hop up to the top floor. And if you were expecting

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just a little attic bedroom, you are going to be in for a surprise

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because it just goes on and on up here.

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More bedrooms. Count them.

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One there, a little bathroom there,

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you've got another bedroom over there,

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bedroom there, bedroom there, another one here.

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They've all got loads of character cos they're built into the eaves

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and really nice.

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Nice, nice, nice. Gosh.

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What are you going to do with this place, then?

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It's probably not going to be one house.

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I don't think that really maximises the potential of this place.

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It's screaming out to be a house of multiple occupancy,

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an HMO.

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Rent out these rooms individually

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and you could be generating who knows what.

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I mean, if you rented them out for

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£50, £60, £70, £80 a week individually,

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this house is going to start delivering some serious returns.

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# Up and down and up and down

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# And up and down and up

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# And down. #

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And there's even more potential for renting back on the ground floor.

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When you come out of the rear of the property,

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you might think it would just end.

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But no, there's this extra space here. And I think this could be

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a little, well, self-contained unit in its own right.

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You've got a kitchen area there, a loo,

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this slightly odd area here with these huge, great windows.

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And then, at the back, look at the size of this!

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Absolutely massive, massive room.

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Certainly enough space in here to create a bedroom

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and a separate living area,

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as a bonus on top of everything else you've got.

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How absolutely fantastic.

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And here, some real, absolutely classic decorating touches.

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We like the louvered doors. And how about this?

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-HE EXHALES

-Rocks.

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Or...not quite rocks.

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Got to keep that.

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# Get your rocks off Get your rocks off, honey

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# Shake 'em now, now. #

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Moving on from my fascination with the decor,

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outside it is a practical low-maintenance space

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with the cherry on top being a good-sized garage, which again

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has multiple uses - from parking a car to storage or even a workshop.

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I reckon this is a no-brainer

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as far as a house of multiple occupancy is concerned,

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but is there a market for this type of rented accommodation,

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and what about other options?

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We asked the auctioneer who sold it what potential he saw

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for this amazing eight-bedroomed house,

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guided at an equally amazing £110,000.

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It's a very, very large house

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to turn into a family home.

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I'm not so sure there's a trade here for a bed and breakfast/small hotel,

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but there is a large demand for the letting of single rooms.

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And if it was done to a high standard

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and if you managed to get en suites in the individual letting rooms,

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then I think it could command quite a decent rent.

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Much of that demand comes from the nearby power station

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that is the main local employer.

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So, what would need to be done and how much income could it bring?

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If it was done to a good standard, good en suite facilities,

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I think you would achieve around £80,

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maybe to £85 per week for each room.

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I think if the buyer managed to create maybe a one-bedroom apartment

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on the ground floor offshoot,

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I think you would probably get in the region of £300 per calendar month.

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Well, with eight bedrooms and maybe two of the public rooms rented

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at £80 per week, that would be £3,200 a month.

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And then add on £300 per month for the flat, and that's £3,500.

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Wow! £42,000 a year!

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Well, it's an absolutely massive property that I think

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could potentially return somebody a massive amount of money

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if they get it right.

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Let's see who decided to take this place on

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when it went under the hammer.

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Spacious, detached property. Massive property, this.

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£100,000 plus, then, is the last quoted guide.

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Got a telephone bid on this already in.

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Who is here for this at 100?

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95, then.

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90, get me started.

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At £90,000, anybody here? 90 I've got on the door.

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At £90,000 then.

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91 here. 92.

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93, 94, 95, 96...

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And with the bidding going up in £1,000 increments,

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we eventually reach £130,000.

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130, 131,

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132, 133,

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134, 135,

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136.

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Shake of the head at 136.

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With you, sir, at 135.

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At £135,000 for the first time.

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At £135,000 for the second time.

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£135,000, third and final time.

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All done, all out. Selling away.

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To you, sir. Thank you. Well done.

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And the successful bidder is Peter, who along with his daughter, Sienna,

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met me back at the property to outline his plans.

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-Peter, good to meet you.

-And you.

-Congratulations.

-Thank you.

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-Yeah. Big house.

-Yes, it's substantial.

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-MARTIN CHUCKLES

-So, why did you want to buy it?

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Well, I've just bought a house with my partner in Gosforth

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and we saw this come up and decided

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it was an opportunity too good to miss

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because of the number of rooms

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and the possibility of renting the rooms out to local contractors.

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So, do you know the area

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and the need for that kind of accommodation, then?

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Yes, I've lived up here about nine years now

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and we know a lot of the contractors anyway.

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-Right.

-Through meeting in the pub, etc.

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And I know there is a good market for that

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if you price the rooms right and provide the right facilities.

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Right.

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I, in fact, about three years ago, stayed just up the road here

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in an extremely grotty flat for about three months

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and I thought, "This is absolutely awful."

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It was decorated in the 1970s style

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and it looked like that was the last time it was cleaned as well.

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So I thought, "We've got to do better than that."

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To cut to the chase, to rent out individual rooms to people

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for what kind of letting periods?

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Well, generally speaking,

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the Sellafield contractors do it on a weekly basis.

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So, they pay you cash upfront for the week,

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and then they're normally in Monday night to Thursday night

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-and they're away at the weekends.

-Right.

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So, for me, that's ideal because then I can come in at the weekends,

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tidy up the rooms, refresh the bedding, that kind of thing.

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I did think about the holiday let kind of thing

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but this side of Cumbria - we're obviously west of the Lakes,

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of Windermere, etc -

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we don't get the tourism here that they do over there.

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-So I wouldn't like to rely on that.

-So, tell me a bit more about you.

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Well, I'm a film cameraman.

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-Been in the film business just over 30 years now.

-Gosh.

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-Just came back. I was filming for Doctor Who last week.

-Oh, wow.

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Not in Cardiff, though.

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So before you ask, we don't get to meet any of the stars at all.

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-You don't?

-No.

-What were you filming?

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-We were filming some miniatures, special effects stuff...

-Oh!

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-..for next year's season.

-Oh, you can't give any secrets away?

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So I can't say anything about it, no.

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Except it was very dusty and very smoky.

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So how do you find time to do this, then?

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For me, this is a very long-term project.

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I'm not going to do it up and then get rid of it.

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It's going to stay with us for the foreseeable future

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as an income for me because my pension is so pathetic.

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And a legacy for my children.

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And it's going to take a couple of years, I think, to come to fruition.

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But I'm going to try and get one or two rooms sorted out

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and get the downstairs presentable and the kitchen sorted

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and get a couple of rooms going.

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And then once that's bringing in a bit of income,

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then I'll start to do other rooms.

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So, tell me what you are going to do in terms of sorting it out.

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This room we're standing in now,

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I'm actually going to keep for myself.

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-Oh, right.

-So, it will be a kind of den for me, really.

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The other reception room I'll have as a lounge/dining room,

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plus a dining kitchen.

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And then each bedroom will be en suite.

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-So, I think, ultimately, I'll have eight rooms to rent out.

-Right.

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-Plus the flat.

-Right.

-The flat will be the last thing we do.

-OK.

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Cos that needs more work doing to it, really.

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Peter's clearly taking it in stages

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as and when he has the time and money.

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So how much does he envisage spending?

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-£2,000 per room to decorate and put the en suite in.

-Right.

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-I'll be doing most of the work myself.

-Right.

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I would say about £25,000 over the next couple of years.

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I'm not in the business of just

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bashing it out and quick lick of paint and that sort of thing.

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So if people like the rooms, if they're comfortable,

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modern, bright and breezy, then they'll come back, won't they?

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-That's my philosophy, anyway.

-Well, listen, congratulations.

-Thank you.

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-Good luck with it.

-Lovely.

-Look forward to seeing how you get on.

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-What an interesting project.

-Great. Thanks very much. Fingers crossed.

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So, Peter embarking on a fairly ambitious project with this place.

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And lots of work to be done both in sorting it out

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and then running it as the business he is proposing.

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Is he ready for all the work that's involved?

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You can find out later in the show.

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# We are the Village Green Preservation Society. #

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I'm in Kent, only three miles from Maidstone.

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This lovely village is Bearsted,

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but the property I'm seeing today is a little newer than these.

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Well, I'm here to see a 1930s house today.

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It's down this lovely leafy, lush, green lane

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and it's a three-bed semi and the guide price -

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£240,000 to £245,000.

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It's here, but what I'm loving is the frontage.

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Gosh, how many cars could you park on here, I wonder?

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I'm going to have a look inside.

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I do love these '30s houses. They make fabulous family homes.

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I don't know what it is, but in here, it makes me feel

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like I've just come back from the pub.

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Now, when I say that, it's because the house sort of slopes this way.

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It goes like that.

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And a dead giveaway is, well, look at this.

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The doorframe sloping down there.

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In front of me, it's also sloping down there.

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So, I think this house may have moved over the last few years,

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so that's something that whoever takes this on has got to check out.

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So, nice-sized living room. Great space. Lovely, big bay window.

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Second reception room. Nice and sunny.

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Through to the kitchen, which, well, a little bit on the narrow side.

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Slightly disappointing.

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Look at these amazing cupboards, though.

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You'd pay a fortune for something like that

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in an old antiques shop now. Fabulous.

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I would like to knock through here and just extend the space,

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maybe have this as a kitchen/diner next door.

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But it's out there that's really exciting me.

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Wow!

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Well, on a day like today, everybody wants a garden like this.

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In fact, everybody wants a garden like this!

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Now, I know that this is just over 50 foot this way.

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And I got my tape measure out this morning,

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and it's just over 40 foot this way.

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Now, the interesting thing is, this house currently sits on

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less than half the width of this plot,

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leaving all of this space here.

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Now, I know the auction catalogue hints at a potential development,

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maybe a separate dwelling could be built here completely.

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Who knows? That would all be down to the planners.

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But I think the great thing with this property is

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there's just so much potential.

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You could extend, you could build,

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or you could just have a jolly nice garden.

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# There's a lot of opportunities. #

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Hang on. Before I start planning all the possibilities

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of what could be built,

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I should probably first see what else there already is here.

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So, upstairs we've got three bedrooms.

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This is something rather interesting.

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If you have a little look out that window,

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you can actually see the rest of the space you've got

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to the side of the property.

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I know I keep banging on about that, but this is such an amazing plot

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that it excites me no end, this house.

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So upstairs, that's where it gets a little bit disappointing.

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You've got a very small bedroom here, a not bad double-size here,

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a fantastic family bedroom in here.

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But a really small bathroom. I mean, look.

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There is just enough room for a bath and a sink

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and you've got a loo here.

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So, how can we get around that?

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Well, straight away, I would put a wall up here with a doorway

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and open this all up so you've got one combined loo and bathroom,

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and that solves your problem.

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# Problem solved. #

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There certainly are lots of options for this 1930s house,

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so what does the local estate agent make of it all?

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The thing that sells 1930s houses, generally, is it was during

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a period of construction that was very substantial,

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very good quality

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and still retained a lot of character.

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The only concern that was immediately apparent

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was the sloping floor as you enter the hallway.

0:17:350:17:38

It's not difficult to spot.

0:17:380:17:40

So, that's certainly worth checking out and investigating.

0:17:400:17:45

So, if the house gets just a freshen up and a refurbishment,

0:17:450:17:48

what would it be worth then?

0:17:480:17:50

I would anticipate it selling for about £350,000

0:17:500:17:54

and to rent, perhaps £1,300 per calendar month.

0:17:540:17:58

So, good potential profit and also the simplest option.

0:17:590:18:03

But with that extra land to the side,

0:18:040:18:06

what does he think the best option would be?

0:18:060:18:08

I think that lends itself to either

0:18:080:18:10

a very substantial double-storey extension

0:18:100:18:13

or maybe they might even be able to squeeze

0:18:130:18:16

a small detached property in the space.

0:18:160:18:19

And how would that affect the income potential?

0:18:190:18:22

If the property were extended on the side,

0:18:220:18:25

perhaps a big double-storey extension

0:18:250:18:27

providing, say, two additional bedrooms,

0:18:270:18:29

another reception room, an extended kitchen,

0:18:290:18:33

that would allow the owner, I think, to exploit the value to the extent

0:18:330:18:38

of perhaps £425,000, maybe £450,000

0:18:380:18:43

if it's done very well and it is big.

0:18:430:18:47

That's the key.

0:18:470:18:48

That's good news if selling, but a bigger house in this area

0:18:500:18:53

would probably only increase the rental income

0:18:530:18:56

by a few hundred pounds, hardly worth the effort.

0:18:560:18:59

Which leaves us with the final and most exciting option -

0:18:590:19:02

building an additional house to the side.

0:19:020:19:05

The value of the original building would obviously suffer,

0:19:050:19:08

but how much could both properties sell for?

0:19:080:19:10

You could be achieving £300,000 for the original house,

0:19:120:19:15

plus £300,000 for the new house.

0:19:150:19:18

From a rental prospective, again, you could simply

0:19:180:19:21

double the anticipated value of the original house,

0:19:210:19:24

so you've got two times £1,300.

0:19:240:19:27

That's £2,600 per calendar month for the combined project.

0:19:270:19:32

Wow. Now, that is an impressive return.

0:19:320:19:35

Though, that is a bigger building project

0:19:350:19:37

and your costs would go up, too.

0:19:370:19:39

Can you guess? I've really warmed to this solid family home.

0:19:410:19:43

Now, it does have a little bit of a slope

0:19:430:19:46

that certainly needs looking into.

0:19:460:19:48

But in capable hands, with the potential of a whole new house,

0:19:480:19:52

well, there's a lot going for this.

0:19:520:19:54

Let's see who wanted to take it on when it went under the hammer.

0:19:540:19:57

What can we say? It is an attractive,

0:19:570:19:59

semi-detached house.

0:19:590:20:00

Bay-fronted, just the sort of thing everybody loves.

0:20:000:20:03

230 to start me.

0:20:030:20:05

230, I'm on the way at the back. 230.

0:20:050:20:07

230. And five now.

0:20:070:20:09

The original guide price of £240,000,

0:20:090:20:12

not surprisingly, became ancient history rather quickly.

0:20:120:20:16

We rejoin the bidding at £300,000.

0:20:160:20:20

300,000, and two.

0:20:200:20:22

302, 302.

0:20:230:20:25

And five, 305,000.

0:20:250:20:28

At 305, and eight.

0:20:280:20:30

It's a shake of the head. Have a think.

0:20:300:20:31

At £305,000.

0:20:310:20:35

308, I'm looking for.

0:20:350:20:37

Otherwise, for the first time then, at £305,000.

0:20:370:20:40

308.

0:20:400:20:42

And 10.

0:20:420:20:44

He was slow. 310. That's a shake of the head.

0:20:440:20:47

At 308, it's back with you in the front for the first time.

0:20:470:20:50

At 308 for the second.

0:20:500:20:53

Third and final time. If you're sure you're out.

0:20:540:20:56

308, third and final time.

0:20:560:20:58

Well done, sir, for £308,000.

0:20:580:21:00

That final bid was made by Chris,

0:21:020:21:04

managing director of a financial services company

0:21:040:21:07

with a small but growing portfolio of property.

0:21:070:21:09

Chris, lovely to meet you today. Congratulations.

0:21:110:21:14

-Thank you, yes.

-So, why did you want to buy this property?

0:21:140:21:17

It was simply a case of, "Ooh, that's got some potential.

0:21:170:21:21

"Maybe we can do something with it."

0:21:210:21:22

Was it the fact that it's on a fantastic plot?

0:21:220:21:25

Yeah, that's precisely it.

0:21:250:21:26

You've got some land along the side of the house

0:21:260:21:29

which may be able to be developed in some way, shape or form.

0:21:290:21:33

That bit of land at the side of the building

0:21:330:21:37

seems to have caught everyone's eye, then.

0:21:370:21:39

And Chris has certainly thought through all the options.

0:21:390:21:42

My preference would be to have a detached property, if there's room.

0:21:420:21:46

If not, then attach it to this.

0:21:460:21:48

Meanwhile, because all this takes time,

0:21:480:21:51

what are you going to do with the building?

0:21:510:21:53

Spend a little bit of money on it, tidy it all up,

0:21:530:21:55

get it nice for somebody to live in

0:21:550:21:57

and then just rent it out on a short-term let.

0:21:570:22:00

The budget is relatively small for that.

0:22:000:22:02

£7,000 should do the kitchen, do something in the bathroom,

0:22:020:22:06

decorate, paint, freshen it up.

0:22:060:22:09

So that's what allows me to say, "OK,

0:22:090:22:11

"now I can wait and see what happens."

0:22:110:22:13

So how long is it going to take you to do your first initial

0:22:130:22:16

get this place ready for rental?

0:22:160:22:19

A month. That's the plan.

0:22:190:22:20

One month from completion to getting somebody in here.

0:22:200:22:24

Now, you strike me as a man that makes things happen. Am I right?

0:22:240:22:27

It will happen.

0:22:270:22:28

There will be someone in here in a month. I can guarantee that.

0:22:280:22:31

There will be someone in here in a month.

0:22:310:22:33

-How can you guarantee that?

-I can't.

0:22:330:22:35

-You're just saying that?

-Confidence.

0:22:350:22:37

# Cos I'm a confidence man. #

0:22:370:22:41

Well, Chris has every right to be confident.

0:22:420:22:44

With the short-term rental keeping the money rolling in,

0:22:440:22:47

he has time to explore the many options

0:22:470:22:50

that make this house an extremely attractive proposition.

0:22:500:22:53

Let me talk about what's not attractive.

0:22:530:22:55

Well, it's not not attractive, but it's worrying me slightly -

0:22:550:22:58

is the slope.

0:22:580:22:59

I had somebody...I had a surveyor look at it.

0:22:590:23:03

They genuinely believe that that's historic.

0:23:030:23:06

Well, that is good news and I'm glad he's had it checked out.

0:23:060:23:09

Chris would prefer to build a self-contained detached property

0:23:110:23:13

on that side plot.

0:23:130:23:15

He could, of course, just extend the current house and make it bigger

0:23:150:23:19

or he could attach a house to the semi, creating a terrace of three.

0:23:190:23:24

It's all down to planning, of course,

0:23:240:23:26

but the possibilities seem endless.

0:23:260:23:29

I want to know what I'm going to see when I come back.

0:23:290:23:31

-Ah, well.

-And I don't know.

0:23:310:23:32

We've got A, B, C, D, E and F.

0:23:320:23:34

What we can expect is this property will be lovely

0:23:340:23:38

and we'll have a detached property alongside.

0:23:380:23:41

Well, Chris is a money man, not a builder,

0:23:440:23:47

so he's enlisted some special help for this project.

0:23:470:23:51

One of the builders that have done some work

0:23:510:23:53

on some of the other properties, excellent guy. Elvis, his name.

0:23:530:23:57

And what we've done is I've said, "OK, if I buy this property,

0:23:570:24:02

"you do the development and we'll share some of the spoils."

0:24:020:24:06

-So, Elvis is your new best friend.

-He is.

0:24:060:24:08

# I can help

0:24:080:24:10

# I got two strong arms and I can help. #

0:24:100:24:13

Oh, yes, Elvis has entered the building.

0:24:130:24:16

This property has so much potential.

0:24:160:24:19

I can't wait to see what Chris and Elvis come up with.

0:24:190:24:23

I love it that

0:24:230:24:24

Chris saw this as a good opportunity

0:24:240:24:27

and he just snapped it up on auction day.

0:24:270:24:29

So, will he get permission to build a house here?

0:24:290:24:33

Or will we see a row of terraces?

0:24:330:24:35

Or just lick of paint and a tidy up?

0:24:350:24:37

You can join me later on in the programme

0:24:370:24:39

so we can check how Chris has got on.

0:24:390:24:41

Coming up, in Lancashire, a new owner plans to work some magic.

0:24:440:24:48

Name a card. Name any card you want.

0:24:480:24:50

And in Kent, the long list of options grows.

0:24:510:24:54

The architects, they've come up with a completely different idea.

0:24:540:24:57

We move back to the northwest of England now

0:25:000:25:03

and the town of Seascale, on the Cumbrian coast,

0:25:030:25:05

where earlier we viewed this large, eight-bedroomed, Edwardian villa.

0:25:050:25:10

Really nice. Nice, nice, nice. Gosh.

0:25:100:25:13

Not only eight bedrooms, but four reception rooms

0:25:130:25:17

and the large rear area just begging to be a flat.

0:25:170:25:20

It was bought for £135,000 by Peter, a freelance cameraman,

0:25:200:25:25

who came back with daughter Sienna

0:25:250:25:27

to tell us about his vision for this property.

0:25:270:25:30

It was an opportunity too good to miss

0:25:300:25:32

because of the number of rooms

0:25:320:25:33

and the possibility of renting the rooms out to local contractors.

0:25:330:25:38

Peter had spotted real potential in the local market here

0:25:380:25:41

for a house of multiple occupancy,

0:25:410:25:43

with a local power station offering a possible source of tenants

0:25:430:25:47

looking to rent on weekdays while working away from home.

0:25:470:25:51

And he reckoned on spending £2,000 on each unit for rent

0:25:510:25:55

but with a top spend of £25,000,

0:25:550:25:57

and he was taking a long view on the timescale.

0:25:570:26:00

It's going to take a couple of years, I think, to come to fruition.

0:26:000:26:04

It seemed like two years on was a good time to return,

0:26:040:26:07

so has the project come to fruition?

0:26:070:26:09

Peter's plan involved financing each stage of renovation

0:26:250:26:28

by renting out each room as and when completed.

0:26:280:26:31

So, where is he with that?

0:26:310:26:33

We are two years down the line with one room rented out

0:26:330:26:36

and one just about to start.

0:26:360:26:38

I'm very pleased with the way this room has turned out.

0:26:380:26:41

I think we chose a good colour. It's quite restful.

0:26:410:26:44

Restored the fireplace. It's made of cast iron.

0:26:440:26:47

And the en suite worked out very well.

0:26:470:26:49

I managed to cram in a shower and WC and basin.

0:26:490:26:53

It took me ages to design that, cos it was a very tight space,

0:26:530:26:57

and get all the plumbing in.

0:26:570:26:59

Two years on, the rest of the property is a building site

0:26:590:27:02

because he has uncovered what can only be described

0:27:020:27:04

as a catalogue of household horrors.

0:27:040:27:07

We thought we'd get one entire floor done in the space of 12 months,

0:27:090:27:12

which I didn't think was particularly ambitious.

0:27:120:27:15

But the plumbing was in a terrible state.

0:27:150:27:18

The hot water tank had been leaking for years.

0:27:180:27:21

When I rolled the carpet back, it was black with mould.

0:27:210:27:24

So that had to come out as well

0:27:240:27:27

so I had to do the entire plumbing system again.

0:27:270:27:30

And it was quite a monstrous plumbing job.

0:27:300:27:33

I managed to get the pipework inside the lath-and-plaster wall there.

0:27:330:27:37

If you look down here,

0:27:370:27:40

you can see there's the mains supply to the tank.

0:27:400:27:44

That's the vent and the hot supply to the top floor

0:27:440:27:47

and that's the cold from the tank.

0:27:470:27:49

A few floorboards had already been taken up

0:27:490:27:51

but I had to remove quite a few more

0:27:510:27:54

and I'm very careful when I remove old floorboards

0:27:540:27:57

because you can't get these sizes anymore.

0:27:570:28:00

And obviously, in an old place like this,

0:28:000:28:02

you can't just go out to a DIY store and buy something off the shelf

0:28:020:28:07

because things like the door surrounds, the architrave,

0:28:070:28:10

are no longer available in that size.

0:28:100:28:12

And if all that sounds like a nightmare,

0:28:120:28:14

you haven't heard about the electrics yet.

0:28:140:28:17

Once I got in, I started taking up floorboards and discovered

0:28:170:28:22

that the electrical work was put in by a cowboy, let's say.

0:28:220:28:27

Instead of a ring main on each floor,

0:28:270:28:29

it was spurred out from a single source, so it was quite dangerous.

0:28:290:28:32

The worst part of it was the lighting circuit,

0:28:320:28:35

which was the original 1920s lead-wrapped wire,

0:28:350:28:38

which uses the lead wrapping as the earth

0:28:380:28:41

and the junction boxes that that was going into

0:28:410:28:43

were showing signs of burning already.

0:28:430:28:46

So it wouldn't have been long before a fire had started.

0:28:460:28:49

So I decided just to take all the electrical circuits out

0:28:490:28:54

and start from scratch.

0:28:540:28:56

Peter has done a lot of the work

0:28:580:29:00

but has got professionals in when needed.

0:29:000:29:02

There are no aspects of property that should be treated casually -

0:29:020:29:06

electrical, gas and plumbing installations in particular.

0:29:060:29:10

But Peter will get all his electrical work certified.

0:29:100:29:14

So, one room down, many more to go. What is the plan?

0:29:140:29:18

To fully complete the house I would say would be five years in total

0:29:180:29:23

from purchase, so another three years.

0:29:230:29:26

With all this refurbishment still going on,

0:29:260:29:28

how does this affect the one tenant now in residence?

0:29:280:29:32

Our current tenant is very tolerant, I think.

0:29:320:29:35

We cleaned up the hallway, we wiped the walls, all the dust and dirt,

0:29:350:29:38

and we cleaned up the kitchen as best we could,

0:29:380:29:40

put in a little cooker and a fridge.

0:29:400:29:42

The main problem is, as we get more rooms finished,

0:29:420:29:46

there's less room to have all my tools lying about and, of course.

0:29:460:29:50

At the end of the day, I have to tidy the everything away

0:29:500:29:52

cos I can't leave floorboards up and tools lying out

0:29:520:29:55

when there's someone coming in to sleep at the end of the day.

0:29:550:29:58

With the unforeseen costs of rewiring and replumbing,

0:29:580:30:01

how is Peter's original budget holding up?

0:30:010:30:04

Initially, I reckoned £25,000 would do it from top to bottom,

0:30:040:30:08

with a lot of the work being done by myself and my partner.

0:30:080:30:11

At this stage, I'd say we're about £7,000 in at the moment.

0:30:110:30:17

So I think we'll do it.

0:30:170:30:18

On that note of optimism,

0:30:180:30:20

how wise an investment has Peter's £142,000 been so far?

0:30:200:30:25

To find out,

0:30:260:30:27

we invited along two local property agents to have a look.

0:30:270:30:30

The demand for a house of this size for purchase

0:30:310:30:34

is actually quite limited.

0:30:340:30:35

In this instance, the owner is doing the right thing -

0:30:350:30:38

subdividing the property for multiple occupancy.

0:30:380:30:40

This is ideally suited to that and therefore should go really well.

0:30:400:30:44

The current market is quite active at this moment in time

0:30:440:30:47

with a lot of changes

0:30:470:30:49

happening to the rental income,

0:30:490:30:51

where we've got a lot of contractors coming through.

0:30:510:30:54

But at the same time, a lot of families moving into the area.

0:30:540:30:57

Although Peter is looking at this property as a long-term project,

0:30:570:31:01

what figure do the agents think could be attained

0:31:010:31:03

if it was put back on the resale market?

0:31:030:31:06

If the house is put back onto the market in the current state,

0:31:060:31:09

then I would anticipate that it would receive

0:31:090:31:11

£150,000 to £160,000.

0:31:110:31:14

I would anticipate that we'd achieve

0:31:140:31:16

somewhere around £200,000 for it currently.

0:31:160:31:19

As the property stands, that is a potential profit

0:31:190:31:22

before tax and expenses of between eight and £58,000.

0:31:220:31:27

Those figures are very reassuring because, obviously, if I had

0:31:270:31:32

any terrible financial problems, then it would mean that

0:31:320:31:35

I wouldn't lose out,

0:31:350:31:37

certainly wouldn't lose out on my original investment.

0:31:370:31:39

But as Peter's intention has always been to create an HMO,

0:31:390:31:43

what would the rental figures be?

0:31:430:31:45

Well, the most important thing for these rooms

0:31:450:31:47

is that they have their own sanitary facilities - they do -

0:31:470:31:51

and on that basis, they should be going for £85 per week.

0:31:510:31:54

I would anticipate that they would be able to get £80 per week.

0:31:540:31:58

I'm actually getting slightly more than that at the moment.

0:31:580:32:01

These figures multiplied by eight would give Peter

0:32:010:32:04

a whopping yield of approximately 20%,

0:32:040:32:06

so financially, a bright, long-term future

0:32:060:32:09

would appear to be on the cards.

0:32:090:32:12

But which Peter be tempted to repeat the experience?

0:32:120:32:15

This is pretty much a one-off, I think.

0:32:150:32:17

I would like to retire sooner rather than later.

0:32:180:32:21

And the thought of doing DIY and building work

0:32:210:32:25

for the rest of my life is not really...

0:32:250:32:27

not something I'm going to go for.

0:32:270:32:29

This is the market town of Chorley in Lancashire.

0:32:340:32:37

You can still see remnants of the town's cotton past

0:32:370:32:40

in some of the buildings.

0:32:400:32:42

But nowadays, it's a popular place for commuters to settle.

0:32:420:32:46

So, five minutes from the town centre,

0:32:460:32:48

ten minutes from the train station,

0:32:480:32:50

right by the edge of a bit of green stuff.

0:32:500:32:54

What is there not to like? £48,000 was the guide price.

0:32:540:32:57

Two-bedroomed terrace.

0:32:570:33:00

Oh, what shall we do? Shall be stay here?

0:33:000:33:02

No. I'll tell you what, let's go inside for a change.

0:33:030:33:05

-HE LAUGHS

-Little tease, aren't I?

0:33:090:33:12

Anyway, wow!

0:33:120:33:14

Look at that! Fantastic high ceilings.

0:33:140:33:17

What a lovely surprise when you walk through the front door.

0:33:170:33:20

Little porch area there, which is always nice.

0:33:200:33:23

Stairs up to your bedrooms there.

0:33:230:33:25

And then through into your living accommodation downstairs.

0:33:250:33:31

And wow, a really nice-sized room.

0:33:310:33:34

Obviously been knocked through at some point.

0:33:340:33:37

An interesting sort of square bay window. I don't know if that was...

0:33:370:33:40

Can you have a square bay window? I think you can.

0:33:400:33:43

In fact, I think I'm talking complete rubbish

0:33:430:33:45

at this moment in time.

0:33:450:33:46

Anyway, it's a bay window, a square one, whatever.

0:33:460:33:48

Living room area there.

0:33:480:33:51

Oh, did I get away with that? No, I don't think so.

0:33:510:33:53

Yeah, living area at the front there. A rear living area here.

0:33:530:33:57

Uh, it's all a bit sparse, isn't it?

0:33:570:34:00

Well, at least there's no getting rid of the rubbish to do.

0:34:020:34:05

Just think of the money saved on skips.

0:34:050:34:07

But clearly somebody's already had a go

0:34:070:34:10

at stripping this place right down to the bare bones,

0:34:100:34:13

so it's unlikely there will be any hidden horrors.

0:34:130:34:16

OK, through here, and ha-ha!

0:34:160:34:18

At last, some fittings!

0:34:180:34:21

Yes, we've got some kitchen units. Which is nice.

0:34:210:34:24

Especially in a kitchen, because that's what this is.

0:34:240:34:27

It's obviously the extension built on the rear of the property.

0:34:270:34:29

It actually works.

0:34:290:34:31

A bit of a wiggly-woggly corridor to get to it.

0:34:310:34:33

But apart from that, it's a good-sized space.

0:34:330:34:35

Lots of light coming in from the windows.

0:34:350:34:38

And, yes, a bit of a refurb and it would be great.

0:34:380:34:42

So, all in all, a big tick for the downstairs.

0:34:420:34:45

# Tick, tick, tick, tick, tick, tick, tick, tick, tick, tick. #

0:34:450:34:47

There are further ticks upstairs for this two-bed end-terrace

0:34:470:34:51

because I see no signs of the bathroom down here.

0:34:510:34:54

Phew!

0:34:540:34:55

It's a bit of a hike but when you get up here, what have we got?

0:34:550:34:58

Well, joy of joys, a really nice-sized bathroom,

0:34:580:35:02

obviously in need of some renovation, but that's no biggie.

0:35:020:35:07

A little landing area here, which is pleasant.

0:35:070:35:09

Smaller second bedroom.

0:35:090:35:11

And then through to a really lovely-sized master bedroom.

0:35:110:35:15

Loads of light coming in through the windows.

0:35:150:35:18

Looks a bit wiggly-woggly here in places.

0:35:180:35:20

But in general,

0:35:200:35:22

it's just one of those houses that has a really nice feel to it.

0:35:220:35:26

I can't quite put my finger on why, it just does.

0:35:260:35:29

Let's have a look outside.

0:35:290:35:31

Well, at the back of the property, not exactly an expansive garden.

0:35:320:35:36

Just this walled bit of concrete.

0:35:360:35:38

But actually, with some planters with nice plants,

0:35:380:35:41

maybe some climbers, clematis

0:35:410:35:43

and all sorts of lovely things growing over here,

0:35:430:35:45

it could actually be quite pleasant.

0:35:450:35:47

And certainly, if you're renting this place out,

0:35:470:35:49

this is definitely low maintenance.

0:35:490:35:51

But what I'm more interested in out here is, could you extend?

0:35:510:35:55

Well, you've obviously got that single-storey extension there

0:35:550:35:59

which houses the kitchen.

0:35:590:36:01

That could probably go to a double-storey extension,

0:36:010:36:03

although none of the other properties have done it.

0:36:030:36:06

So given these possibilities, we asked a local agent

0:36:060:36:09

what he thought of this house, guided at £48,000.

0:36:090:36:14

It's really a good property

0:36:140:36:16

for both investment

0:36:160:36:18

and for the rental side of things.

0:36:180:36:19

It looks like the front bay window might need a little bit of work

0:36:190:36:22

doing to it and then it could be

0:36:220:36:23

things internal-wise like plastering,

0:36:230:36:25

and also the roof may need work doing on them in the future.

0:36:250:36:28

As a possibility to make the extension out the back

0:36:280:36:31

a two-storey extension,

0:36:310:36:33

again, that potentially would increase the value.

0:36:330:36:35

Sticking with the same footprint, what does he think this property

0:36:350:36:39

might sell for in the current market?

0:36:390:36:41

This property should achieve about £100,000 in today's sales market,

0:36:410:36:44

fully renovated.

0:36:440:36:46

And given the area's popularity with renters,

0:36:460:36:49

what kind of rental figure can he put on it once it's renovated?

0:36:490:36:52

Rental figures should be between about £550

0:36:520:36:55

to £595 per calendar month.

0:36:550:36:58

And with the extension?

0:36:580:36:59

I think with a two-storey extension out of the back,

0:36:590:37:02

the potential should be between £115,000 and £125,000.

0:37:020:37:07

The rental amount should then be

0:37:070:37:09

approximately £650 per calendar month.

0:37:090:37:12

Well, yes, there's a bit of work to be done to sort this place out,

0:37:130:37:17

but I get a really nice feeling about this house.

0:37:170:37:20

I love the high ceilings, the layout.

0:37:200:37:22

Yeah, location, everything. Really good one to go for.

0:37:220:37:26

Let's see who agreed when it went under the hammer.

0:37:260:37:28

Lot 143, what shall we say for this?

0:37:330:37:36

Start me at 45 on it.

0:37:360:37:38

Thank you. 45. Bidding.

0:37:380:37:40

46, 47, 48, 49,

0:37:400:37:42

50, 51, 52, 53,

0:37:420:37:46

54, 55, 56.

0:37:460:37:49

With you then at £55,000. You're out, here and here.

0:37:490:37:52

Yours at 55 for the first.

0:37:520:37:55

55 for the second.

0:37:550:37:57

56, 57, 58.

0:37:570:37:59

Buying at 58.

0:37:590:38:01

59, 60, 61.

0:38:010:38:04

62. Yes?

0:38:040:38:05

63. 64.

0:38:050:38:08

65, 66.

0:38:090:38:12

£65,000 and in the room for the first.

0:38:140:38:17

65 for the second.

0:38:170:38:20

Third and final time.

0:38:200:38:22

Bought it at £65,000.

0:38:220:38:24

Sold to a barely visible Paul who pipped the others to the post

0:38:240:38:28

with a bid of £65,000.

0:38:280:38:30

I met Paul and his wife, Nicky, back at the property

0:38:300:38:34

to find out their plans.

0:38:340:38:36

Nicky, Paul, good to meet you both.

0:38:360:38:38

-Nice to meet you.

-And you.

0:38:380:38:39

-Congratulations.

-Yeah, great.

-Thank you.

0:38:390:38:41

-I like this house.

-Yeah. It's got potential.

0:38:410:38:44

What was it about it that made you want to buy it?

0:38:440:38:47

Well, it's a good area.

0:38:470:38:48

It's a quiet street, end-terrace, got loads of potential.

0:38:500:38:55

It just came upon the auction.

0:38:550:38:57

We saw on the local sites and we thought,

0:38:570:38:58

"That's a good house. It's selling for the right price."

0:38:580:39:01

So we had a go and ended up getting it.

0:39:010:39:03

-And is this something you do?

-Yes. Yeah.

0:39:030:39:06

We have eight properties, don't we? That we do up and...

0:39:060:39:08

-Nine.

-Eight or nine.

0:39:080:39:09

-THEY LAUGH

-Oh, so easy to lose count, eh?

0:39:090:39:12

Yeah, well, we do this all the time.

0:39:120:39:14

We buy a property, do it up, rent it out.

0:39:140:39:16

Buy another, do it up, rent it out.

0:39:160:39:17

-Right.

-We like doing this sort of stuff, yeah.

0:39:170:39:19

Being local makes this a very attractive property,

0:39:190:39:22

that and the fact it is a very popular commuter town,

0:39:220:39:25

with people working in Manchester and Liverpool.

0:39:250:39:28

So, what are their plans?

0:39:280:39:30

-Full revamp, really.

-Yeah.

-Full revamp.

0:39:300:39:32

New carpets, new windows throughout, outside.

0:39:320:39:34

So, a complete brand-new house by the time it's finished.

0:39:340:39:37

And what about structurally?

0:39:370:39:38

Cos you've got this archway leading between these two rooms.

0:39:380:39:41

-Is that going to stay?

-Yeah.

0:39:410:39:42

That'll stay. The layout will pretty much stay as it is.

0:39:420:39:45

It'll just be cosmetic and replastering.

0:39:450:39:46

It'll feel like walking into a brand-new house.

0:39:460:39:48

Structurally, the building's sound, it's square.

0:39:480:39:51

The roof's sound, there's no sags. It's a good, solid, old building.

0:39:510:39:54

And the door in the back of the lounge there,

0:39:540:39:56

it could be so much more, couldn't it?

0:39:560:39:58

There'll be a new door with a brighter and bigger window

0:39:580:40:01

to bring some more light in.

0:40:010:40:02

And then outside, it'll be re-flagged and made nice,

0:40:020:40:06

sparkled up a bit.

0:40:060:40:07

Oh, we're going to make it into three bedrooms as well.

0:40:070:40:09

Oh, you just dropped that into the conversation.

0:40:090:40:12

How are you going to do that?

0:40:120:40:13

The main bedroom, how it's got two windows at the front,

0:40:130:40:17

we're going to divide it there between the two.

0:40:170:40:19

You'll still end with a double bedroom and a single bedroom,

0:40:190:40:21

cos it's a good size. It's too big on its own as one bedroom.

0:40:210:40:24

Well, I mean, it does give a lovely feeling of space, is all I'd say.

0:40:240:40:27

But with a rental, we get a bit more rental

0:40:270:40:29

if it's a three-bedroom property rather than a two-bedroom.

0:40:290:40:32

It's better for a family with a couple of kids.

0:40:320:40:34

-Yeah.

-So it should appeal to more people.

0:40:340:40:36

-And not that difficult to do.

-No.

0:40:360:40:38

Just a studded wall and change the door around.

0:40:380:40:40

-You'll whip it up, won't you.

-Soon get it done.

0:40:400:40:42

So, who's going to do the work?

0:40:420:40:44

Well, I do a lot of work.

0:40:440:40:46

What I can't do, I get trades in and we look after trades.

0:40:460:40:49

You know, the plumbing, I can't do the plumbing.

0:40:490:40:51

I do all the donkey work and then I get the trades in to do their bit.

0:40:510:40:54

Right. And how about you? What's your involvement?

0:40:540:40:56

I do all the sourcing of materials and things like that.

0:40:560:41:00

-That's good. That's important.

-All the pretty stuff.

0:41:000:41:03

-Yeah.

-Design.

-Design.

0:41:030:41:05

What have you found a really good way to get hold of

0:41:050:41:07

good value materials?

0:41:070:41:09

-Just researching, really.

-Yeah.

0:41:090:41:12

Prices can change all the time,

0:41:120:41:14

so it's best not to stick with the same supplier

0:41:140:41:16

because they can have a price increase

0:41:160:41:19

and you can get it down the road cheaper,

0:41:190:41:20

-so research every time.

-Right.

0:41:200:41:22

Because we're so central in Chorley there's loads of suppliers,

0:41:220:41:24

loads of merchants all around the area.

0:41:240:41:26

Within half an hour, there's each town...

0:41:260:41:28

Each town is half an hour away, they've got different merchants,

0:41:280:41:31

so we've got a wide range of choices.

0:41:310:41:33

What's the budget?

0:41:330:41:34

Between ten and 12. Ten and 12.

0:41:340:41:36

Yeah, roughly. Usually that's what we spend on each property,

0:41:360:41:39

around that figure.

0:41:390:41:41

-And the timescale?

-Two to three months.

-Yeah.

0:41:410:41:44

-Two to three months.

-Three months maximum.

0:41:440:41:46

-Brilliant.

-Two months, hopefully.

0:41:460:41:47

We'll get it blitzed as fast as we can.

0:41:470:41:50

So, any other family members involved in this?

0:41:500:41:52

Well, the boys might get a paintbrush out.

0:41:520:41:55

-How old are they?

-Six and eight.

-What are their names?

0:41:550:41:58

-Harley and Finlay.

-Oh, brilliant.

0:41:580:42:00

Are they following in your property developing footsteps, are they?

0:42:000:42:03

-I think they are.

-They love getting the scruffs on

0:42:030:42:05

-and doing a bit of painting.

-Do they?

-Yeah.

0:42:050:42:08

You have repaint again afterwards, but they like having a go.

0:42:080:42:11

When Paul's not property developing,

0:42:110:42:13

he works full-time as a consultant for a civil engineering firm.

0:42:130:42:17

And when he's not doing that, he's a very successful magician.

0:42:170:42:20

# Could it be magic? #

0:42:200:42:21

-What kind of magic to you do?

-Oh, close-up.

0:42:210:42:23

Cards, coins, a variety of stuff, really.

0:42:230:42:26

Anything close. I can show you a little trick if you want.

0:42:260:42:28

-Can you?

-Yeah.

-Yeah, go on then.

0:42:280:42:30

-OK, hold your hand out.

-OK.

0:42:300:42:32

-OK, pack of cards.

-Yes.

0:42:320:42:33

-This is a first.

-This is a first, yeah.

0:42:330:42:35

Name a card. Name any card you want.

0:42:350:42:37

-Queen of hearts.

-Queen of hearts.

0:42:370:42:38

-Are you happy with the queen of hearts?

-I am.

0:42:380:42:40

-Don't want to change your mind?

-I don't.

-Watch this. Queen of hearts.

0:42:400:42:43

-You've had that pack the whole time.

-Yes.

0:42:430:42:45

Take the cards. Queen of hearts.

0:42:450:42:47

-All the cards completely upside-down.

-Yes.

0:42:470:42:49

Every single card in the whole pack is upside-down apart from one card.

0:42:490:42:52

-No!

-The queen of hearts.

0:42:520:42:54

MARTIN LAUGHS

0:42:540:42:56

I can do all sorts of things just like that, you know.

0:42:560:42:58

How did you do that? I love it.

0:42:590:43:01

You're going to pull off some magic tricks with this place?

0:43:010:43:03

Well, hopefully, yeah. Get it done quick-sharp.

0:43:030:43:06

Wave the wand and it'll be done. That'd be good, wouldn't it?

0:43:060:43:09

Well, listen, congratulations.

0:43:090:43:10

-Well done.

-Thank you.

-Thank you.

0:43:100:43:12

Lovely to meet you.

0:43:120:43:13

-Thank you for the magic trick.

-No problem.

0:43:130:43:14

MARTIN LAUGHS

0:43:140:43:17

That was brilliant.

0:43:170:43:18

Well, it's a great house. You know what I'm going to say, don't you?

0:43:200:43:24

Will Nicky and Paul manage to work their magic on it?

0:43:240:43:27

-HE SNIGGERS

-Nothing if not predictable.

0:43:270:43:30

You can find out later in the show.

0:43:300:43:32

Well, it's been a while now since we saw our properties.

0:43:360:43:39

There should have been lots of work done, but you never know.

0:43:390:43:42

All sorts of problems can arise.

0:43:420:43:43

I wonder how they've been doing. Let's find out.

0:43:430:43:46

We stroll back to sleepy Bearsted, in Kent, now,

0:43:500:43:53

where I earlier met Chris,

0:43:530:43:55

a managing director of a financial services company

0:43:550:43:58

who also had a growing property portfolio.

0:43:580:44:01

He'd added to it this three-bed semi for a price of 308,000.

0:44:020:44:07

Despite its sloping floors and tiny kitchen,

0:44:080:44:11

it did offer a lot of potential, particularly on the outside.

0:44:110:44:15

So, why did you want to buy this property?

0:44:190:44:21

It was simply a case of, "Ooh, that's got some potential.

0:44:210:44:25

"Maybe we can do something with it."

0:44:250:44:27

Was it the fact that it's on a fantastic plot?

0:44:270:44:29

Yeah, that's precisely it.

0:44:290:44:31

You've got some land along the side of the house

0:44:310:44:33

which may be able to be developed in some way, shape or form.

0:44:330:44:38

As long as I've bought the house at the right sort of price

0:44:380:44:41

so that I could let it to cover the cost of the house,

0:44:410:44:45

then I've got plenty of time to devote to having a look

0:44:450:44:49

and see what we can do along the side.

0:44:490:44:50

With the help of his builder, Elvis, Chris was ready to show

0:44:520:44:55

he didn't waste time and gets things done, including finding that tenant.

0:44:550:44:59

One month from completion to getting somebody in here.

0:45:030:45:06

You strike me as a man that makes things happen. Am I right??

0:45:060:45:09

It will happen. There will be someone in here in a month.

0:45:090:45:12

I can guarantee that. There will be someone in here in a month.

0:45:120:45:15

Four weeks later, has Chris kept his promise?

0:45:150:45:18

And has the house been tidied up for a tenant?

0:45:180:45:21

The brand-new kitchen leads out onto the newly-tiled conservatory.

0:45:280:45:32

The two reception rooms have been freshened up

0:45:360:45:38

and neutrally decorated.

0:45:380:45:41

Ideal for Chris's prospective renters.

0:45:410:45:43

The freshening up continues upstairs,

0:45:460:45:49

where the three bedrooms have all been given a lick of paint

0:45:490:45:52

and, as throughout the entire house,

0:45:520:45:54

all the electrics have been checked and updated.

0:45:540:45:57

The bathroom has remained the same for now,

0:46:020:46:04

so it's in the kitchen where the biggest change is evident.

0:46:040:46:09

So, this is the room where we spent the most amount of time,

0:46:090:46:12

most amount of effort and the most amount of money, of course.

0:46:120:46:14

We fitted the new kitchen, new units, everything is new.

0:46:140:46:18

The electrics had to be sorted out, and that's all been done.

0:46:180:46:20

And I'm really pleased. I think it's come out very well, yes.

0:46:200:46:23

This is a quick and simple turnaround for Chris,

0:46:230:46:26

exactly how he wanted it.

0:46:260:46:29

The real project here lies in the space next to the house...

0:46:290:46:32

..where plans for an extra property are coming along nicely.

0:46:340:46:38

We've no planning permission sought yet.

0:46:400:46:42

The architects, strangely enough, they're coming down later on today.

0:46:420:46:46

They've come up with a completely different idea, of course,

0:46:460:46:50

as architects do,

0:46:500:46:51

and they think that I'm better off having a single-storey property

0:46:510:46:55

and perhaps pushing it back into the garden a little bit more

0:46:550:46:58

than where it is, take this bit off of the back of this house

0:46:580:47:02

to give both houses a little bit more space.

0:47:020:47:05

So we're investigating that. Personally, I think

0:47:050:47:08

that we're better off putting a detached house on the side.

0:47:080:47:11

But, you know, that's what architects are for.

0:47:110:47:13

That's what they're going do.

0:47:130:47:14

So they'll be down today to tell us what they think,

0:47:140:47:18

and then we'll take it from there.

0:47:180:47:20

So, we hope to get planning permission in

0:47:200:47:22

over the next two weeks.

0:47:220:47:24

Well, fingers crossed. But is all the work complete here?

0:47:240:47:28

One or two little bits.

0:47:280:47:29

There's a couple of windows that need replacing,

0:47:290:47:32

which we'll do fairly shortly,

0:47:320:47:33

but we've let the property now.

0:47:330:47:35

So people are moving in tomorrow. So there really wasn't the time

0:47:350:47:40

to do that level of work in the house before they wanted to move in.

0:47:400:47:45

So, Chris has kept his promise to get a tenant in a month.

0:47:450:47:48

Has he kept to his budget, too?

0:47:480:47:50

With the initial budget of £7,000,

0:47:500:47:53

of course, there was a little bit of give and take on that.

0:47:530:47:56

I'm quite smug because we've done it for less than £5,000.

0:47:560:47:59

So I'm pleased.

0:47:590:48:02

Yeah, and so he should be, too.

0:48:020:48:04

Chris has done what he set out to do -

0:48:040:48:06

clean up the existing property and get it tenanted fast

0:48:060:48:09

whilst also making preparations for a possible build

0:48:090:48:12

in the neighbouring plot.

0:48:120:48:14

After a total spend of nearly £313,000

0:48:180:48:21

here, it's time to see what two local estate agents make of it,

0:48:210:48:25

starting with the agent who saw it originally.

0:48:250:48:28

I visited the property before

0:48:300:48:32

and it's changed a little bit,

0:48:320:48:34

only a little bit.

0:48:340:48:35

I believe they've done some modifications,

0:48:350:48:38

a bit more decorating

0:48:380:48:39

and I think they fitted a kitchen since I was here last.

0:48:390:48:42

There's always a really big demand for properties

0:48:430:48:46

that can appeal to families.

0:48:460:48:47

It's in a good area, it's in a good catchment area for a local school,

0:48:470:48:51

and they always sell well.

0:48:510:48:53

It's in a nice road as well.

0:48:530:48:55

There is a great demand for this type of property.

0:48:550:48:58

It fits a nice niche where there's probably the biggest

0:48:580:49:03

or second biggest proportion of buyers and tenants.

0:49:030:49:07

That second-time, maybe third-time buyers' market. So, this is perfect.

0:49:070:49:12

Everything points to a sound investment by Chris, then,

0:49:140:49:17

and that's not even taking into account

0:49:170:49:19

his future plans for the plot next door.

0:49:190:49:21

Chris has already got a tenant, but the question is,

0:49:230:49:26

is he getting the market rate?

0:49:260:49:29

They should be able to achieve around £1,000 per calendar month.

0:49:290:49:33

As it stands at the moment, I would anticipate the property

0:49:330:49:35

renting for about £1,100, maybe £1,200 per calendar month.

0:49:350:49:39

Taking that top estimate would mean a possible rental yield

0:49:400:49:44

of around 4.5%, so let's see if Chris and his builder, Elvis,

0:49:440:49:48

are all shook up by this result.

0:49:480:49:50

Rental figures are about where they should be.

0:49:520:49:54

1,150 is what we've got.

0:49:540:49:56

So, yeah, I accept there's some improvements to be made to the house

0:49:570:50:01

but £1,150, people move in tomorrow,

0:50:010:50:04

so both the agents have given us exactly where I thought

0:50:040:50:07

we were going to be. So that's good.

0:50:070:50:09

Yeah. Absolutely happy.

0:50:090:50:11

If the King is happy, then I'm happy.

0:50:110:50:14

But what about sale valuations?

0:50:150:50:18

They could expect to achieve around £325,000.

0:50:180:50:22

I think if the owner perhaps attends to some more modern features,

0:50:220:50:28

for example a better quality, more up-to-date bathroom suite

0:50:280:50:31

perhaps combining the toilet and the bathroom into one,

0:50:310:50:34

it is quite possible that they might realise as much as £350,000.

0:50:340:50:39

These might all be on Chris's to-do list,

0:50:390:50:41

but for the moment, as the house stands,

0:50:410:50:44

if that potential valuation of £325,000 was obtained,

0:50:440:50:48

then that would mean a profit of £12,000 minus taxes and fees.

0:50:480:50:53

Not bad for four weeks' work.

0:50:530:50:56

And when it comes to that plan for another house,

0:50:560:50:58

confidence and can do are the watch words.

0:50:580:51:01

All finished, all completed.

0:51:020:51:04

May even be sold 12 months from today.

0:51:040:51:06

That's the flat.

0:51:060:51:07

We now head back to the Lancashire market town of Chorley,

0:51:120:51:15

where earlier I visited this three-bedroomed end-terrace house

0:51:150:51:20

which had a few surprises.

0:51:200:51:22

Wow!

0:51:220:51:24

Look at that! Fantastic high ceilings.

0:51:240:51:27

It was promising. Even the bare walls didn't dampen my spirits.

0:51:270:51:31

Wow. A really nice-sized room.

0:51:310:51:34

Although the kitchen needed a bit of work

0:51:340:51:36

and it had a downstairs bathroom, I was definitely feeling positive.

0:51:360:51:40

So, all in all, a big tick for the downstairs.

0:51:400:51:44

And upstairs was just as good.

0:51:440:51:45

It's just one of those houses that has a really nice feel to it.

0:51:450:51:50

The house was bought at auction for £65,000

0:51:500:51:53

by husband and wife Paul and Nicky,

0:51:530:51:55

who aren't strangers to property developing.

0:51:550:51:58

We have eight properties, don't we? That we do up and...

0:51:590:52:01

-Nine.

-Eight or nine.

0:52:010:52:03

-THEY LAUGH

-So easy to lose count, eh?

0:52:030:52:05

With Nicky to keep Paul right on the figures,

0:52:050:52:07

they had a £10,000 to £12,000 budget to spend.

0:52:070:52:10

The layout will pretty much stay as it is.

0:52:100:52:12

It'll just be cosmetic and replastering.

0:52:120:52:14

It'll be like walking into a brand-new house.

0:52:140:52:16

Oh, we're going to make it into three bedrooms as well.

0:52:160:52:18

Oh, you just dropped that into the conversation.

0:52:180:52:21

So, did magician Paul have all the right tricks up his sleeve?

0:52:210:52:26

Two months later, we're back to find out.

0:52:260:52:29

# It's a kind of magic

0:52:330:52:35

# It's a kind of magic. #

0:52:400:52:43

Paul and Nicky have certainly conjured up

0:52:500:52:53

a sparkling transformation.

0:52:530:52:54

And those walls are looking so much better for a start.

0:52:540:52:57

We only intended to take off all the wallpaper and reskim everywhere,

0:52:570:53:00

but unfortunately, when we took off the existing wallpaper,

0:53:000:53:03

all the plaster came off as well.

0:53:030:53:05

So we ended up taking the whole plaster back to brickwork

0:53:050:53:07

for the whole downstairs and then we replastered outwards.

0:53:070:53:10

So that was our big...

0:53:100:53:11

That was the only thing we didn't plan on, really.

0:53:110:53:13

The bay window did need looking at. All the windows were rotten, really.

0:53:130:53:17

So we decided to redo the whole house with new windows anyway

0:53:170:53:20

and we've put a brand-new bay window in there.

0:53:200:53:22

So it looks smart now.

0:53:220:53:24

Paul and Nicky have chosen to refurbish

0:53:240:53:27

rather than replace the kitchen.

0:53:270:53:29

# It's a kind of magic... #

0:53:300:53:32

The kitchen itself, when we first saw it, the units were fine.

0:53:320:53:35

# It's a kind of magic Magic, magic. #

0:53:360:53:39

Basically, all we had to do was replaster the whole kitchen,

0:53:390:53:42

new worktops, new sink, new cooker, new flooring

0:53:420:53:45

and repainted it all and brought it back to life.

0:53:450:53:47

The one structural alteration Paul and Nicky intended

0:53:470:53:51

was to create two bedrooms from the large master bedroom.

0:53:510:53:54

The master bedroom before had two windows in it

0:53:540:53:56

and it was a really big room.

0:53:560:53:58

It was too big, really, for one bedroom.

0:53:580:54:00

So we decided to split it and we still were able

0:54:000:54:02

to have a window in each bedroom.

0:54:020:54:04

We've still got a double-sized main bedroom

0:54:040:54:06

and a single bed in the second bedroom.

0:54:060:54:08

So I think it's worth doing.

0:54:080:54:09

It's made it a three-bedroomed house now, so...

0:54:090:54:11

-Added to the value.

-Added to the value. Better selling point, yeah.

0:54:110:54:14

This couple have a portfolio of properties

0:54:180:54:21

so they know in a competitive market what tenants want,

0:54:210:54:24

and one must-have is central heating.

0:54:240:54:27

The house before we bought it was owned by a nursery,

0:54:280:54:31

and they only had electric heating round the whole house.

0:54:310:54:33

-For safety, wasn't it?

-For safety, yeah.

0:54:330:54:35

And they had no gas.

0:54:350:54:36

The gas disconnected totally, back out to the main even.

0:54:360:54:40

So we've redone the whole central heating around the whole house,

0:54:400:54:43

new gas central heating.

0:54:430:54:44

And we had to get National Grid out

0:54:440:54:45

to give us a brand-new connection from the main road.

0:54:450:54:48

That was certainly an unforeseen issue which Paul had to sort,

0:54:480:54:51

along with organising the different trades and the sequence of the work.

0:54:510:54:55

We've had a good team of people working with us on it.

0:54:560:54:59

We have trades here full-time, constantly every day,

0:54:590:55:02

carrying out all the works for us

0:55:020:55:04

and they all followed on from each other.

0:55:040:55:06

I was just able to... I have a full-time job, but I was able to

0:55:060:55:08

keep popping by at the odd time and at nighttime, make sure it was OK.

0:55:080:55:12

# Teamwork, do it together

0:55:120:55:15

# Teamwork, friends forever. #

0:55:150:55:18

You have to admire Paul for getting on with this while working full-time

0:55:180:55:22

as a consultant in the civil engineering trade

0:55:220:55:25

and managing to meet his two-month timescale.

0:55:250:55:28

But as it wasn't quite as straightforward as he thought,

0:55:280:55:31

I think Paul would have had to pull off quite a magic trick

0:55:310:55:34

to come in on that £10,000 to £12,000 budget.

0:55:340:55:37

We have gone over that. We've spent around 14,000.

0:55:370:55:41

This is mainly due to the fact that

0:55:410:55:44

we've had to replaster every single wall

0:55:440:55:46

and also we had to get gas connected.

0:55:460:55:49

Well, now that everything's been completed,

0:55:500:55:53

what will two local property agents think of the renovations?

0:55:530:55:57

It's my second time inside the property

0:55:580:56:00

and I think they've done a really good job.

0:56:000:56:02

I think the kitchen looks great and the bathroom does as well

0:56:020:56:04

and it's nice and neutral throughout.

0:56:040:56:06

I think it was a great decision to make the property a three-bedroom.

0:56:060:56:10

It will make it a lot more saleable and also rentable,

0:56:100:56:12

and also it's a really good size inside for numerous different people,

0:56:120:56:17

including families or, potentially, first-time buyers.

0:56:170:56:21

I think they've made a good job of the changes.

0:56:210:56:23

They've renovated it to a high standard,

0:56:230:56:25

nice modern kitchen and bathroom.

0:56:250:56:27

So, yeah, it looks good.

0:56:270:56:29

It has now got the three bedrooms.

0:56:290:56:31

It's been done in a nice, clean way,

0:56:310:56:34

but still retaining many of the features,

0:56:340:56:37

with it being a period property.

0:56:370:56:39

With these positive comments,

0:56:410:56:43

what do the agents reckon the rental figures to be

0:56:430:56:46

for this now three-bedroom house?

0:56:460:56:47

I believe on the rental market,

0:56:470:56:49

the property should bring about £550 per calendar month.

0:56:490:56:52

I would expect if they were to put it on the rental market,

0:56:520:56:55

they would achieve £550 per calendar month.

0:56:550:56:58

So, a fairly healthy yield of 8.5%.

0:56:580:57:01

-That's exactly what thought, isn't it?

-Yeah.

0:57:010:57:03

Because, like, we do have a couple of houses that we do rent

0:57:030:57:06

so we know what they go for, so £550 was our idea anyway.

0:57:060:57:10

And what about the resale values?

0:57:100:57:13

I'd recommend an initial starting price

0:57:130:57:15

of just under the stamp duty at £125,000.

0:57:150:57:18

I would expect them to get in the region of £120,000.

0:57:180:57:22

-I'm quite happy with them figures.

-Yeah. It's about what we expected.

0:57:220:57:26

So, Paul and Nicky are happy with a potential profit

0:57:260:57:29

before tax and expenses of between £41,000 and £46,000.

0:57:290:57:34

Overall, how has this experience been?

0:57:340:57:38

It went according to plan.

0:57:380:57:39

A couple of things we had to redo, such as the plastering.

0:57:390:57:42

But as the house went, it went to plan

0:57:420:57:45

and we're happy with the experience.

0:57:450:57:46

The next project is yet to be found,

0:57:460:57:49

but as soon as we've got a buyer for this,

0:57:490:57:51

we'll be looking for another property,

0:57:510:57:54

either auction or on the market,

0:57:540:57:57

to renovate and either sell or rent out.

0:57:570:58:00

# It's a kind of magic Magic, magic, magic. #

0:58:000:58:05

Well, in the ever-changing world of property,

0:58:070:58:10

there are always new things to learn

0:58:100:58:12

so we'll have more stories for you next time.

0:58:120:58:14

So make sure you join us then for more Homes Under The Hammer.

0:58:140:58:17

-Goodbye.

-Goodbye.

0:58:170:58:18

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