Episode 39 Homes Under the Hammer


Episode 39

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Transcript


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Hello. Now, lots of people would like to have a property portfolio

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and that doesn't have to be as grand as it sounds.

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Nope, even if you can raise just a small sum,

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you can usually find something to buy.

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And then you've got your foot on the ladder, but how do you start?

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Well, one option is to visit your local property auction.

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Well, because of the variety of properties on offer,

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auctions can often be a good place to find value for money.

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That's right, if you've done all your research

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and you've got the finances available,

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you should be able to make a success of it.

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So here are the properties that our buyers went for on today's show.

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With a guide price of £25,000,

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will this two-bed terrace in Stoke prove to be plain sailing?

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But there are stormy waters brewing in Tunbridge Wells.

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You two haven't even been inside and seen it yet.

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No, we're looking forward to it. We just have no idea what we bought.

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And in North Yorkshire,

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someone could end up in the doldrums with this list of conditions.

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Things like you can't hang out washing,

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you can't have pets, like a dog or cat...

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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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Sold.

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Hanley, one of the six major towns that make up Stoke-on-Trent,

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provides the town centre shopping for this borough,

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to the extent that some are trying to change its name

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to Stoke-on-Trent City Centre.

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As well as shops, there's plenty of pubs and restaurants.

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In fact, it has the lowest residential population in the area.

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So any house nearby offers good amenities right on your doorstep.

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Well, the property I'm here to see

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is within walking distance of Hanley centre.

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And it's in an area which is undergoing a lot

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of urban regeneration at the moment,

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so it's definitely going to be of appeal to investors.

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£25,000-plus was the guide price for this two-bedroom terrace.

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Let's take a look.

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So, not expecting any particular surprises, but what have we got?

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Very traditional layout through the front door into your living room.

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The floor looks a little bit sort of...uneven.

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That feels pretty solid, so I don't know what's going on there.

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But the room itself, you know,

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exactly what you might have expected.

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And straight away you're thinking,

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it just needs a bit of tidying up, bringing into the 21st century.

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Replace that, perhaps...

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or definitely.

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New paint, wallpaper, obviously.

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Through here, to your rear sitting room, oh...

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Kind of fun.

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Yeah, your rear sitting room area here.

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Again, an old gas fire that you'd want to have checked out

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or probably replaced.

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Stairs up to your bedrooms there and then no surprises,

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out to the rear of the property.

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But just look at that before I go any further.

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That step, years and years of wear,

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great bit of social history, that, isn't it?

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I imagine this is where the house would have ended originally,

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but as is fairly traditional with these kind of terraces,

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over the years, someone has extended out here.

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This is where the kitchen is.

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You know, it needs a bit of sorting out, of course.

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And then onwards and through to the bathroom.

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Now, originally, of course, that would have been a separate

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little shack or whatever at the bottom of the yard. It's not ideal.

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But it is basically what is expected of this kind of house in this area,

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so it's not too much of a big deal.

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All in all, I mean, it's textbook stuff.

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MUSIC: Strangely Strange But Oddly Normal by Dr Strangely Strange

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# Strangely strange but oddly normal... #

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Housing differs all around the country and so do expectations.

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So if you are a would-be developer,

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these are the things you would need to suss out.

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There may be other parts of the country where this layout

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would be considered strange, but here it's the norm.

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So, out the back of the property, and not an expansive garden.

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Well, you wouldn't have expected that, really, would you?

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A nice little sort of backyard area, really.

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You can see those extensions that have occurred over the years

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here and a bit more local industrial history, beautiful bricks.

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These Staffordshire bricks, absolutely glorious,

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all probably handmade.

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A wall like that, with a few nice plants growing up it,

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it could turn this little area here into a really pleasant place to be.

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Oh, and there's access to a little road out the back, too. Fantastic.

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Yes, it may offer no surprises but it's a great little property

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which would appeal to a first-time buyer and also landlords.

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Let's check out the bedrooms.

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So, upstairs and your two bedrooms,

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both seem to be in reasonable condition, not massive but not bad

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with some inbuilt storage, which is good.

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A couple of things up here.

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One good thing, radiators, as there were downstairs,

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so at least there is a central heating system in place.

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Bad thing, it looks like there isn't any double glazing

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so that is something you would definitely want to do.

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And while I'm up here, a chance to look out across the roofs

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of the kitchen and the loo and, as you can see,

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a bit of remedial work needing to be done there.

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Nothing too horrendous, hopefully.

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But you may end up stripping certainly a portion of that back,

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so that needs to be factored into your budget.

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MUSIC: Think by Aretha Franklin

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-# You better think...

-Think.

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# Think about what you're trying to do to me

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-# Think...

-Think, think

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# Let your mind go, let yourself be free... #

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Even with those jobs to do,

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that £25,000 guide price is looking pretty reasonable.

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We asked a local estate agent for his thoughts.

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A large percentage of properties in this area

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do tend to be owned by landlords.

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However, there is redevelopment and improvement going on in the area

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and in the near future,

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we do hope to see more first-time buyers and owner occupiers.

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OK, so what would the resale value be once renovation work is done?

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In the current market,

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the resale value would be in the region of £60,000.

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If the property sold for anything close

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to that guide price of £25,000,

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even with the refurbishment budget of £10,000,

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it would offer a great potential profit.

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What could it rent for?

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Rental income for this property would be in the region of

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£400 per calendar month.

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So, a good, solid, clearly well-loved little house

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that would make a great investment purchase or a good place to live.

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Yes, a popular auction lot, I'm sure.

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Let's find out who bought it when it went under the hammer.

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Two-bedroom mid-terrace, gas central heating, two reception rooms.

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20,000 to start?

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20 in the aisle, thank you. At £20,000.

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21, can I see? Bid's at 20,000, 21.

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22. 23, 24. 25?

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25. 26. 27?

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No? 26. The bid is in the aisle, £26,000.

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27 anywhere else?

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At £26,000.

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Got your 27, 28. 29. 30.

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31, 32, 33, 34,

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35, 36, 37, 38...

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Nope. 38, bid's in the aisle still, £38,000.

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39 anywhere else?

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All done?

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£38,000 once, then. £38,000 twice.

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Third and final time, £38,000...

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Sold to you, sir. Well done.

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The successful bidder is father-of-two Jason.

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He and his wife, Jo, bought the property for 38,000,

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13,000 over the guide price.

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Jason is a compliance auditor for a supermarket

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and he and his wife have been steadily building up

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a portfolio of properties in recent years.

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He is a man with a plan,

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so I am meeting him back at the property to find out more.

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But first, the important stuff.

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-Congratulations.

-Thank you very much.

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Let's not talk about the house. I've heard you were on Tiswas!

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When I was little, yes, a long time ago.

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-That's one of my claims to fame.

-When was that, then?

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Oh, it must've been '78, '79.

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-Around that time when I was about eight or nine.

-And what did you do?

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Just stood in the audience, nothing special.

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Wanted to be with the Phantom Flan Flinger, but, no, never made it.

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So, from Tiswas to property, tell me about the journey in between.

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Oh, a few years ago I bought a property, did it up.

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I thought, "This is easy."

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Then the crash came, so I rented and it kind of worked out for me

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-and now this is my fifth house that I'm buying.

-Right.

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So it's hopefully, hopefully, get it done and rent it

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and carry on and get the next one.

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And is that what the strategy now is, then, to buy to rent?

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Buy to rent and hopefully one a year for the next ten years

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and then at 55 I can say, "I'm retiring. That's me finished."

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Right.

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# Gonna work

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# I'm gonna build a master plan... #

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Sounds like Jason has done his homework.

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This is typical of the properties he has bought before,

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apart from the fact they've all been in his neck of the woods,

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Nuneaton and Coventry, about an hour and a half's drive away.

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So, why Stoke?

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There's a load of regeneration going on around here.

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So at the moment, it's not the best area,

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but there is a lot of work going in on a lot of properties

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and that's going to bring the market up,

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which hopefully will help me with my properties as well.

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And what was it about this house that you liked?

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Someone has lived in here and looked after it,

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so it's not run down, it's not derelict.

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It's clean, it's tidy.

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It needs tidying up and bringing into the modern century.

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So what are you going to do to sort it out?

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All the wallpaper off, plastered top to bottom.

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Fireplaces will probably come out, new kitchen, new bathroom.

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New double glazing and doors and then painted and done.

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So what's the budget?

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7,000 and that's the windows, kitchen, bathroom and plastering.

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And you've done enough of these to know that's sort of realistic?

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It's all on track at the moment

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and the quotes are coming in where they need to be for the windows

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and that, so I am pretty confident it will be under the 7,000.

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That doesn't sound like a very big budget,

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but Jason does plan to do a lot of the work himself.

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He also has a reliable colleague who helps him out

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with many of the trades.

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He's set a 16-week timescale and he'll rent it like his other properties.

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But there might be one big difference with this one.

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What about letting the property,

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cos obviously you're used to doing it very close to home?

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You're going to be a bit further away,

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how are you going to cope with that?

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There's a couple of options. We'll probably go through an estate,

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an agent first time round to get a feel for it,

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and then once that's sorted,

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then hopefully make some contacts through word of mouth

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cos most of my properties are let by word of mouth.

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People leave and I have people ringing up saying,

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"I have a friend who wants to move" or a neighbour who wants to come in,

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-so I'm deemed as a nice landlord.

-Oh, good.

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Well, that's nice to hear. How do you become a nice landlord?

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-What do you do?

-I make sure everything works.

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If it's not working, get it fixed.

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And they pay the rent on time, they get a good, quality service

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-back in time as well.

-Good.

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-Well, listen, congratulations.

-Thank you very much.

-Good luck.

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-And I look forward to seeing how you get on.

-Thank you. Cheers.

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So Jason's on his way to sorting out his financial future through

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property and a great little house he's got here to help him do that.

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How will he get on sorting it out?

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Hopefully he won't get himself in a Tiswas.

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You can find out later in the show.

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I'm in Royal Tunbridge Wells in Kent,

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famous for its spring waters, the elegant Georgian terrace known

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as The Pantiles and renowned as a well-heeled part of the country.

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With good transport links into London,

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it's a popular town for commuters.

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Tunbridge Wells became royal in 1909

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when King Edward VII granted the title to celebrate

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the town's popularity with visiting royalty.

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It's only one of three towns in England

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to have been awarded the honour.

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So, am I here to see a posh palace or even a magnificent manor house?

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Sadly, no. I'm here to see a studio flat.

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But even though the property might not be very grand,

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it is very close to the centre of this royal town,

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just half a mile away.

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So here it is on this attractive, if busy, street.

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Now, it's a studio flat up here on the second floor I've come to see.

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It's in this Victorian semi.

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It's handsome looking from the outside, so rather imposing.

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Now, there's communal off-street parking out here, which is good.

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It went to auction with a guide price of £50,000 to £60,000.

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Let's take a closer look inside.

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Being on the second floor, yes, it is quite a climb to the flat.

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All the stairs might put some buyers off.

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I certainly wouldn't want to haul my shopping all the way up here,

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but let's hope the flat itself is worthwhile.

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Well, the words "studio flat" and "large" are not two words

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that would usually sit comfortably next to each other,

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but this is small.

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My goodness.

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So this is it, your bedroom, your living room, your kitchen,

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your entertaining space.

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That's it, end of the tour.

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I'm only joking. I mean, really, this is all you're going to get.

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And in this space, there's not an awful lot you can do to update it.

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You've got heating here, it's not gas.

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You've got these electric heaters.

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You've got woodchip wallpaper, you could sort all this out.

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I suppose you could change this kitchen and bring it up to standard

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by putting something a little modern in here,

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but it's a very small space.

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I've not really got high hopes for the bathroom.

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And when I say bathroom, I actually mean shower room,

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so another rather small space.

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Loo, sink, shower. That's it.

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MUSIC: Small World by Huey Lewis & the News

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# Small world

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# Small, small world... #

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Regardless of the size, one important issue to always consider

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when buying any flat is the lease.

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Now, with flats, you're not often buying the land the property sits on

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or the building, but leasing the right to own and live there

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for an agreed period of time.

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When that lease expires so, in theory,

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will your right to live there.

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In this case, there's only about 70 years left on the lease,

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which should be all right,

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but mortgage companies are not keen on short leases

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and with anything under 50 years...

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Well, it can be near on impossible to get a loan at all.

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But since 1993, most flat owners are legally entitled

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to get 90 years added to their lease.

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But you need to have owned the flat, like this,

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for at least two years to qualify.

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So, if you plan to hold on to this flat long-term,

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renewing the lease is something you should definitely consider.

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And generally speaking, the shorter the lease,

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the greater the cost of renewing it.

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And remember, when you buy a lease-hold flat,

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it's usually the freeholder who is responsible for the upkeep

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of the fabric of the building.

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In this case, the exterior could obviously do

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with a bit of a tidy up and a paint job.

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Now, you might have to wait for a while

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until the freeholder gets round to doing any of the repairs

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and, as one of the flat owners, you may need to contribute

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to the maintenance fund, which could get a little expensive.

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So, you need to do your sums and find out how much

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this tiny studio flat would be worth once it's done up.

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Time to call in the local estate agent for evaluation.

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I think, once it's done up,

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obviously the market is very strong at the moment which means

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that predicting what it is going to be in a few months' time

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is a little bit difficult,

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but good studio flats are ranging from £80,000 to £90,000

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in the town at the moment,

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so I guess it's going to be within that range.

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And what about that lease?

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For some buyers, that will be an issue.

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Negotiate with your freeholder, try and persuade them to come

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to a sensible figure without going through all of the legal

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channels to do it and it should win.

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And if you bought the flat as an investment,

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what rental figures could you achieve?

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My estimate for rental when it's finished and all looking good

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is probably going to be somewhere plus side of 400.

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Between £400 and £450 a month.

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So this property is in a great location

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and with a little work, it could become a very nice, cosy, small

0:17:580:18:02

place to live, so who was tempted by this Tunbridge Wells property?

0:18:020:18:05

Let's head to auction and find out.

0:18:050:18:08

Excellent location.

0:18:080:18:10

Studio flat, it is close to the centre of Tunbridge Wells,

0:18:100:18:13

it would be a good rental property.

0:18:130:18:15

With a guide of £50,000 to £60,000, where are we starting on this?

0:18:150:18:19

Bottom of the guide, got to be worth £50,000. 50,000 anywhere?

0:18:190:18:23

50,000? No? Give me 40 then. Doesn't matter where we start.

0:18:230:18:27

40, on the way. 42 now.

0:18:270:18:29

42, can I say? 42. 44. 46. 48.

0:18:290:18:35

Interest did pick up and quickly passed the upper guide price.

0:18:350:18:39

We rejoin it at 65,000.

0:18:390:18:42

65, anywhere? 65, he says yes. 66, Sir?

0:18:430:18:46

It is against you. 66. 67?

0:18:460:18:50

67? It's with you, then, sir.

0:18:500:18:53

At 66,000. 67?

0:18:530:18:56

No. 67? 67, if you want it.

0:18:560:18:59

67. Go on. Yeah.

0:18:590:19:02

67. 68? 68.

0:19:020:19:05

69? No.

0:19:050:19:08

Definitely out of it?

0:19:080:19:09

OK, the bid is £68,000 for this flat in Tunbridge Wells.

0:19:090:19:14

If there are no further bids, then,

0:19:140:19:16

I shall sell for the first time at 68,000.

0:19:160:19:20

Second time at 68,000.

0:19:200:19:22

You're going to miss it for £1,000.

0:19:220:19:24

Third and final time at 68,000, we're quite sure we're all done?

0:19:240:19:29

Sold.

0:19:290:19:31

Thank you very much.

0:19:310:19:32

The final bid of £68,000 was made by Kent-based bidder Alfred.

0:19:350:19:42

Now, Alfred committed the cardinal sin of not viewing the property

0:19:420:19:45

before he bought it, so he's got some explaining to do.

0:19:450:19:50

I met him and his daughter, Francesca,

0:19:500:19:52

back at their flat to hear their excuses.

0:19:520:19:56

Francesca and Alfred, congratulations!

0:19:560:19:58

-Thank you very much.

-So you got the studio flat?

-Yeah.

0:19:580:20:01

I happen to know that you two haven't even been inside

0:20:010:20:03

and seen it yet.

0:20:030:20:04

No, we're looking forward to it. We've no idea what we've bought.

0:20:040:20:07

It's going to be fantastic

0:20:070:20:08

or we've got to do lots of work to make it fantastic.

0:20:080:20:11

Do you actually make a habit of buying things

0:20:110:20:13

and not looking at them first, Francesca?

0:20:130:20:15

-No, we've never done it before.

-OK, I've actually seen inside...

0:20:150:20:18

-Have you?

-..but I would love to give you two the grand tour.

-Marvellous.

0:20:180:20:22

-Come on, let's go. Let's go.

-OK.

-I'll let you go in first. Go on.

-OK.

0:20:220:20:25

So here we are, top of the stairs.

0:20:250:20:28

Quite a lot of stairs to climb.

0:20:280:20:30

-Here it is.

-Wow!

0:20:300:20:32

-Ooh.

-And, that's it.

0:20:330:20:35

-Not as I expected. It's a lot smaller than I imagined.

-Yeah.

0:20:350:20:37

But it's a lot neater and tidier than I thought.

0:20:370:20:40

Are you a bit disappointed on the size of it? Little bit?

0:20:400:20:43

-I don't know.

-Not necessarily disappointed. Cosier, I suppose.

0:20:430:20:47

Very cosy(!)

0:20:470:20:49

Look, don't forget, you've also got a wee little bathroom.

0:20:490:20:52

-Tiny little loo in there.

-That's quite nice, isn't it?

0:20:520:20:55

Yeah, it's a bit more neat and tidy than I thought it was, though small.

0:20:550:21:00

# So let's go to the top. #

0:21:000:21:03

'This project is a first for the father-and-daughter team with,

0:21:030:21:07

'it has to be said, not the most obvious property development skills.

0:21:070:21:11

'Francesca is a nanny and Alfred deals in antiques,

0:21:110:21:15

'specialising in violins.

0:21:150:21:17

'So this should be another string to his bow.'

0:21:180:21:21

So let's get to the nitty-gritty.

0:21:210:21:23

Why did you want to buy this flat? Tell me, Alfred.

0:21:230:21:25

Well, in fact,

0:21:250:21:27

it was just by chance we were shopping in Tunbridge Wells

0:21:270:21:30

on Friday and we happened to park outside an estate agent's window

0:21:300:21:34

and I happened to glance through the window.

0:21:340:21:36

We didn't think anything of buying it at all,

0:21:360:21:38

but on Monday morning, Francesca jumped out of bed and said,

0:21:380:21:41

"We must go to this auction just to see how much this property goes for."

0:21:410:21:44

So it's your fault?

0:21:440:21:45

No intention whatsoever of buying it,

0:21:450:21:48

so we got there and all you have to do is that and we got it.

0:21:480:21:51

-So here we are.

-You bought it.

0:21:510:21:53

-It's got a short lease, as I'm sure you now know.

-Yes.

0:21:530:21:56

-It's very small indeed...

-Yes.

-..and you paid how much?

0:21:560:22:00

68,000, but we paid more than that

0:22:000:22:02

because when we got the legal pack we were responsible for the seller's...

0:22:020:22:06

-Fees.

-..fees and the auctioneer's fees, which were 3,000,

0:22:060:22:09

so it's cost about 74 or something.

0:22:090:22:12

'Alfred has broken every golden rule.

0:22:130:22:15

'He didn't view it, didn't do any research, didn't even read

0:22:150:22:19

'the legal pack and so didn't know about the fees or that short lease.

0:22:190:22:23

'And yet, do I detect the mood is upbeat?'

0:22:240:22:27

We're very happy because we have been thinking about it,

0:22:270:22:30

via your programme, which we're inspired by, and we see all

0:22:300:22:33

this going on but it's a matter of getting round to doing it.

0:22:330:22:36

It's rather like doing violins

0:22:360:22:38

because I buy a violin that's cracked up, restore it,

0:22:380:22:41

and it gives you joy in restoring it, get it back to what it was,

0:22:410:22:44

and you can get more money for it anyway. Do the same with the house.

0:22:440:22:47

This flat is hardly a Stradivarius.

0:22:490:22:52

The opportunity to add value is really limited,

0:22:520:22:54

other than some cosmetic improvements.

0:22:540:22:57

Alfred used to be a chemistry teacher,

0:22:570:22:59

so I'm hoping he finds a winning formula for this tiny flat.

0:22:590:23:03

# Ah, ah, all about chemistry. #

0:23:030:23:07

We're thinking of extending 20 feet that way, actually.

0:23:070:23:10

THEY LAUGH

0:23:100:23:11

Well, I'm glad these two have a sense of humour and,

0:23:110:23:14

having bought this place with absolutely no preparation,

0:23:140:23:18

it sounds like they're finally getting organised.

0:23:180:23:21

We're getting a team together.

0:23:210:23:23

We've got Rodney, who's a plumber, and Lenny,

0:23:230:23:25

who's an electrician, so we'll get people together.

0:23:250:23:27

We might do a little bit of painting.

0:23:270:23:29

We've got to tidy it up, make it look better and then,

0:23:290:23:31

I don't know if you'll live in it or not. She's OK at home.

0:23:310:23:36

Do you think that this might be somewhere that you could see

0:23:360:23:39

yourself living?

0:23:390:23:41

Um...

0:23:410:23:42

-Go on, be honest.

-Not really.

0:23:420:23:44

-Too small?

-Too small, yeah, I think it's too small.

0:23:440:23:48

Alfred has a two-month timescale

0:23:490:23:51

and a five grand budget for refurbishing the flat.

0:23:510:23:55

But I think this first foray into property has been educational.

0:23:550:24:00

Next time, we've learned a lesson, we'll probably have a look, I think.

0:24:000:24:03

-Good. I'm glad about that. Lovely to meet you.

-Thank you very much.

0:24:030:24:06

Good luck with this. I can't wait to see what you do. Well done.

0:24:060:24:09

If only Alfred and Francesca had had a chance to view this flat first,

0:24:100:24:14

I wonder if they would have still bought it?

0:24:140:24:17

Research is key, but I'm more concerned

0:24:170:24:19

they didn't know anything about the length of the lease.

0:24:190:24:22

Now that is down to not reading the legal pack.

0:24:220:24:25

This will certainly add more expense to this little property

0:24:250:24:28

and I'm not sure they'll have much spare change

0:24:280:24:31

at the end of the renovation process.

0:24:310:24:33

Join me later

0:24:330:24:34

and you can find out how it all goes for the father-and-daughter team.

0:24:340:24:37

Still to come, I'm bowled over by this unusual three-bed

0:24:400:24:44

terrace in North Yorkshire.

0:24:440:24:45

All in all, really, really great.

0:24:450:24:48

And in Tunbridge Wells, Alfred and family receive some unexpected news.

0:24:500:24:56

Right, OK, brilliant, sold!

0:24:560:24:58

Now we're taking a trip back to Hanley in Stoke-on-Trent to meet up

0:25:030:25:07

once again with part-time property developer and TV star Jason.

0:25:070:25:12

Come on, he was on Tiswas(!)

0:25:120:25:15

When I was little, yes, a long time ago.

0:25:160:25:19

That's one of my claim to fames.

0:25:190:25:21

OK, maybe not a TV star, but he certainly shone at this auction...

0:25:210:25:26

..picking up this Victorian two-bed mid-terraced house for £38,000...

0:25:290:25:34

..adding to a number of properties he and his wife Jo already own.

0:25:360:25:40

It's all part of a bigger plan.

0:25:400:25:42

Buy-to-rent, hopefully one a year for the next ten years and then,

0:25:420:25:46

at 55, I can say, "I'm retiring. That's me finished."

0:25:460:25:49

# I got work to do

0:25:490:25:51

# Got so much, way-ay-ay. #

0:25:510:25:54

Jason usually buys property nearer his home in Nuneaton,

0:25:540:25:58

50 miles from Stoke, so what was the appeal?

0:25:580:26:02

At the moment, it's not the best area,

0:26:020:26:04

but there's a lot of work going in on a lot of properties

0:26:040:26:07

and that's going to bring the market up which hopefully will help me

0:26:070:26:10

with my properties as well.

0:26:100:26:13

The house is a traditional Victorian terrace that has been

0:26:130:26:16

extended to the back.

0:26:160:26:18

Jason felt it was in good condition for the price and planned a general

0:26:190:26:23

overhaul to bring the property up to a modern standard

0:26:230:26:26

fit for the rental market.

0:26:260:26:28

He set himself a budget of £7,000

0:26:280:26:32

and 16 weeks to complete the work.

0:26:320:26:34

And 16 weeks later, we're back.

0:26:340:26:37

It's clear Jason and Jo have been busy here.

0:26:530:26:57

The kitchen has been modernised to a good standard

0:26:580:27:00

and in the bathroom a new suite has been installed with

0:27:000:27:04

the addition of a shower over the bath.

0:27:040:27:06

And, given they lived a distance away,

0:27:060:27:08

did they manage to source reliable local tradesmen?

0:27:080:27:12

We got somebody signed up to do the work

0:27:120:27:14

but unfortunately he was involved in an accident

0:27:140:27:16

so we actually used a local friend from down our area.

0:27:160:27:19

He was quite happy to travel and come up and do the work, so we knew

0:27:190:27:22

he was reputable and good at what he does

0:27:220:27:24

so it was a good arrangement really.

0:27:240:27:27

In the downstairs rooms, everything has been plastered,

0:27:290:27:32

painted and decorated and the gas fires have been removed.

0:27:320:27:36

We removed the fireplaces, boarded them up

0:27:380:27:41

and then plastered over, cos it's easier for renting.

0:27:410:27:44

You haven't got to worry about the gas and the extra fires

0:27:440:27:47

and everything else in the rooms.

0:27:470:27:49

Upstairs, the two bedrooms have been completely redecorated

0:27:490:27:53

and throughout the house the windows have all been replaced

0:27:530:27:56

by UPVC double glazing.

0:27:560:27:59

With six properties already under their belts,

0:28:020:28:05

Jo and Jason are old hands,

0:28:050:28:08

but even so, they managed to exceed their budget of 7,000.

0:28:080:28:13

We've spent just under 9,000 now with the bills coming in

0:28:130:28:16

so we spent a little bit extra for the gas checks and the kitchen

0:28:160:28:20

and bathroom was a bit more work than we anticipated.

0:28:200:28:23

And also, having our friend do the work,

0:28:230:28:26

he needed a little bit extra for travelling and that,

0:28:260:28:29

so we sorted that out as well,

0:28:290:28:30

but it still come within a reasonable budget so we're very pleased with it.

0:28:300:28:35

We thought it would take 16 weeks.

0:28:360:28:38

We managed to stick to a tight schedule, got the work done on time.

0:28:380:28:41

What with the travelling forwards and backwards,

0:28:410:28:44

we did quite well and we're happy with the final result.

0:28:440:28:47

Despite managing to stick to that 16-week schedule,

0:28:470:28:50

Jason has found it pretty hard going.

0:28:500:28:53

It's an hour and a half to get home,

0:28:530:28:56

so you work till ten o'clock at night and think, "OK, I'm going home,"

0:28:560:28:59

and then it was a long drive home, so probably just a bit better

0:28:590:29:03

time management on myself if I was going to do it again in this area.

0:29:030:29:07

Having bought this house for 38,000,

0:29:080:29:11

and spent another 9,000 on its upgrade, what would be

0:29:110:29:14

the impact on the earning potential in this area of Stoke?

0:29:140:29:17

We asked two local estate agents to come along to assess

0:29:230:29:26

the quality of the refurbishment.

0:29:260:29:29

Since I've last seen the property,

0:29:290:29:31

the property has been significantly improved.

0:29:310:29:34

It's got a fresh, neutral, modern feel inside

0:29:340:29:37

and it's pretty much ready to move straight into.

0:29:370:29:40

The layout of this property is very typical in this area for this

0:29:400:29:44

age of property.

0:29:440:29:45

There's only one bathroom which is downstairs, unfortunately,

0:29:450:29:48

but that is typical of the type of property we're in.

0:29:480:29:52

There is demand from both tenants

0:29:520:29:54

and the first time buyer market is also improving.

0:29:540:29:58

Again, the third type of market would be landlords looking to

0:29:580:30:01

invest as a long term investment.

0:30:010:30:04

I feel that the standard of finish throughout has been done well.

0:30:040:30:07

I feel that, based on where the property is located,

0:30:070:30:09

that this is ideal for a first time buyer or investor.

0:30:090:30:13

The fixtures and fittings installed are done to a good quality.

0:30:130:30:17

All good positive news and Jason's reputation as a nice landlord

0:30:170:30:21

seems safe, but how safe is his investment of 47,000?

0:30:210:30:27

In today's market I'd suggest the market value of this property

0:30:270:30:30

was in the region of £55,000 to £60,000.

0:30:300:30:34

I would place this property on the open market in the region of

0:30:340:30:37

£55,000 to £60,000.

0:30:370:30:39

That's pretty ball park where we expected 55-60,

0:30:390:30:43

so very pleased with those.

0:30:430:30:45

Yeah, happy.

0:30:450:30:47

For a sale at the higher valuation, Jason and Jo would pocket

0:30:470:30:51

a pretty decent profit of £13,000 minus tax and fees.

0:30:510:30:56

But Jason is adding this house to his rental portfolio.

0:30:570:31:02

What monthly income could they achieve?

0:31:020:31:05

In today's market I would advise the property for rental

0:31:050:31:07

at £375 per calendar month.

0:31:070:31:11

I would anticipate a rental value in the region of

0:31:110:31:13

£400 per calendar month.

0:31:130:31:15

A little bit low because we've already arranged the rent

0:31:150:31:18

and we're getting a little bit more than that so not too bad at all.

0:31:180:31:23

I'm quite happy with the deal we've struck.

0:31:230:31:25

Based on Jason's agreed rent with his new tenant,

0:31:270:31:30

his investment of 47,000 is going to be returning almost 11%.

0:31:300:31:35

On the evidence of that,

0:31:360:31:37

Jason is well on target to reach his goal of retiring at 55.

0:31:370:31:42

Nestling on the banks of the river in the village of Croft-on-Tees

0:31:490:31:53

in North Yorkshire is this lovely 14th century Grade I listed church.

0:31:530:31:58

The father of children's writer Lewis Carroll was rector here

0:32:010:32:04

for a time, so this was where the author

0:32:040:32:07

of Alice In Wonderland spent his boyhood from around the age of 11.

0:32:070:32:12

It's believed the stone carvings inside the church inspired

0:32:130:32:17

one of his most famous characters, the Cheshire Cat,

0:32:170:32:20

and I hope to have a grin as wide as that when I look round

0:32:200:32:24

the three-bed mid-terrace I'm here to see,

0:32:240:32:27

guided at £89,950.

0:32:270:32:30

Well, if you want the convenience of Darlington

0:32:310:32:34

and an easy three-or-so-mile commute away and yet,

0:32:340:32:37

a bit of the rural life, then Croft-on-Tees could be perfect.

0:32:370:32:41

The property I'm here to see converted from an old stable. Ooh!

0:32:410:32:45

HE SNIFFS

0:32:480:32:50

No smell of horses. Bit of a relief.

0:32:500:32:52

Nice little entrance porch there though and then through into

0:32:520:32:56

your dining room.

0:32:560:32:57

Very large sitting room. Double fronted, so lots of light.

0:32:570:33:01

Then through into the kitchen.

0:33:010:33:03

I reckon at some point these might have even been several little

0:33:030:33:07

cottages, which have all been knocked together,

0:33:070:33:10

or certainly two of them have in this instance.

0:33:100:33:12

But the kitchen, as you can see, is in pretty nice shape.

0:33:120:33:15

I'd want to replace the flooring, but these units are great.

0:33:150:33:19

All in all,

0:33:190:33:22

it's looking good.

0:33:220:33:24

# It's looking good, it's looking good

0:33:240:33:26

# It's looking good

0:33:260:33:28

# It's looking good, it's looking good. #

0:33:280:33:30

I like the space and proportions of this place.

0:33:300:33:33

Yes, it needs cleaning up and modernising, and there's a bit

0:33:330:33:36

of damp that needs looking into, but definitely no long faces here.

0:33:360:33:41

Let's see what upstairs has to offer.

0:33:420:33:45

So, up here, a really lovely quirky design.

0:33:450:33:49

Um, three bedrooms.

0:33:490:33:52

Two on this level here. One there and one there.

0:33:520:33:54

The bathroom where it should be, looks to be in half decent condition

0:33:540:33:57

and then, I like this.

0:33:570:33:59

Up a little flight of stairs to the master bedroom.

0:33:590:34:03

Look at this lovely dual-aspect room.

0:34:030:34:06

Lots of character.

0:34:060:34:08

The whole place has got that slight quirky feel to it.

0:34:080:34:11

I guess that's where it came from, being a stable block.

0:34:110:34:14

So, all in all, really, really great.

0:34:140:34:17

Inevitably, with all that character comes some defects.

0:34:200:34:24

The single-glazed windows look a bit rotten and will need replacing

0:34:260:34:29

and there's some damp that should be investigated,

0:34:290:34:33

but it's outside that the biggest problems may lie.

0:34:330:34:37

It all comes down to location.

0:34:370:34:39

Right next door to a hotel, and the hotel, literally,

0:34:390:34:42

owns the land all the way up to the property itself

0:34:420:34:46

and there are lots of restrictive covenants.

0:34:460:34:48

Things like you can't hang out washing, you can't have

0:34:480:34:51

pets like a dog or a cat, and you can't put plant pots and things.

0:34:510:34:54

Anything which might interfere with the running of the hotel.

0:34:540:34:57

You've also got the hotel car park there.

0:34:570:35:00

So hotel car park one side, busy road the other. It's not ideal.

0:35:000:35:05

But horses for courses and I'm sure there are some folk out there

0:35:100:35:13

for whom this won't be a problem.

0:35:130:35:16

Let's see what a local estate agent can tell us

0:35:180:35:21

about this unusual property and, given the weather,

0:35:210:35:24

maybe it's a good thing there's no outside space.

0:35:240:35:27

It's always been a popular village. It's picturesque.

0:35:270:35:31

Doesn't have very many amenities

0:35:310:35:33

but there are amenities close by in the next village in Herworth

0:35:330:35:35

which is just a few yards up the road.

0:35:350:35:37

So the lack of nearby village amenities isn't really an issue,

0:35:370:35:41

but what about the property itself?

0:35:410:35:44

I think it needs a general overhaul. It needs modernising.

0:35:440:35:47

It needs updating.

0:35:470:35:48

It needs complete redecoration, new kitchen, new bathroom and,

0:35:480:35:53

generally, it needs to be brought into the 21st century.

0:35:530:35:57

How much could this property sell for if it was renovated?

0:35:570:36:01

Once the property's refurbished, I would suggest, should the property

0:36:010:36:04

be sold, it would achieve a price of somewhere around about £120,000.

0:36:040:36:09

I think the rental market around here is fairly strong.

0:36:090:36:11

It is a very popular village and,

0:36:110:36:13

should the property be placed on the market for rental,

0:36:130:36:15

I would see it achieving an income of around about £550 per calendar month.

0:36:150:36:19

So a very appealing property on the inside.

0:36:210:36:24

It's just the things going on around the outside that could be

0:36:240:36:28

a bit of an issue to some.

0:36:280:36:31

Let's find out who wasn't bothered when it went under the hammer.

0:36:310:36:34

Lot 28, it's a spacious mid-terrace property.

0:36:370:36:40

We've got this advertised with a price guide of 89,950.

0:36:400:36:44

Can I ask for 90,000 to start me?

0:36:440:36:46

I need 88,000 to start. Do I have £88,000 anywhere?

0:36:470:36:51

Without that, I will withdraw. Do I have £88,000 anywhere?

0:36:520:36:56

Gentleman sitting down at £88,000.

0:36:560:36:59

Do I have 89 anywhere else?

0:36:590:37:00

Latest bid at 89.

0:37:000:37:03

90. 90,000 bid.

0:37:030:37:05

91? 91 bid.

0:37:050:37:07

92? 92 bid.

0:37:070:37:09

93? No?

0:37:090:37:11

This gentleman's bid at £92,000 on the second row.

0:37:110:37:14

Do I have 93 anywhere else?

0:37:140:37:15

I'll take 500 if it will help or I'm selling here at £92,000.

0:37:170:37:21

It's your last chance. I'm going once at 92,000.

0:37:210:37:24

I'm going for the second and final time at £92,000.

0:37:240:37:28

Sold, gentleman on the second row.

0:37:300:37:32

This quirky house was sold for £92,000 to George

0:37:330:37:37

and his wife Glenys, known to her friends as Glen.

0:37:370:37:40

The retired couple live 15 minutes away from their new purchase

0:37:420:37:46

so I corralled them at this former stable to find out more.

0:37:460:37:49

-Glen, George, great to meet you both.

-Hiya, Martin.

-Congratulations.

0:37:500:37:55

-Thank you.

-So tell me why you wanted to buy this place.

0:37:550:37:58

We love walking in the area and we come here a lot in the car

0:37:580:38:01

and park the car opposite the church. We go through the church.

0:38:010:38:04

It's a lovely walk round the River Tees, Clow Beck and coming round.

0:38:040:38:08

We do that quite often.

0:38:080:38:09

But we're interested in the area

0:38:090:38:10

because we looked at a house just the week before in Herworth.

0:38:100:38:14

-It wasn't our cup of tea really, what we wanted.

-And then you saw it?

0:38:160:38:21

We'd actually been down to the estate agents to report

0:38:210:38:24

back on a house we'd seen and we walked past this other

0:38:240:38:28

-estate agents further down and we seen it in the window.

-Ah.

0:38:280:38:31

Glen said, "I like that"

0:38:310:38:33

and I said, "I know where that is.

0:38:330:38:35

"That's right where we parked the car."

0:38:350:38:37

Ah, sometimes in property, things just feel like fate.

0:38:380:38:42

I saw the photo in the estate agents.

0:38:440:38:46

We came round the same day,

0:38:460:38:48

-absolutely fell madly in love with it.

-Madly in love?

-I did, yeah.

0:38:480:38:51

-Not just in love?

-Madly, I just... Yeah, madly.

-Liked the quirkiness.

0:38:510:38:56

I just think it's fabulous,

0:38:560:38:58

so we talked about it and I said to George,

0:38:580:39:00

"Right, I'm going to put an offer in." He said, "How much for?"

0:39:000:39:03

I said, "92,000."

0:39:030:39:05

It was on at 89,9... something.

0:39:050:39:07

George said, "I think you need to put a bit extra, more than that,"

0:39:070:39:10

and I said, "No, I've got a funny feeling about 92"

0:39:100:39:13

so I rang the auction rooms.

0:39:130:39:15

She said, "Please come up to the auction."

0:39:150:39:17

I put the phone down and said,

0:39:170:39:19

"Right, George, we'll go to the auction" so we did.

0:39:190:39:22

The funniest thing was we ended up paying 92 for it.

0:39:220:39:26

There you go.

0:39:260:39:28

Glen clearly thinks this was meant to be,

0:39:290:39:32

and as things have developed, it seems she was right.

0:39:320:39:36

We originally bought it to rent out actually,

0:39:380:39:42

a little venture into buy-to-rent,

0:39:420:39:45

because we downsized four years ago.

0:39:450:39:48

We have a little bit of money left

0:39:480:39:50

and we needed to put it to some good use.

0:39:500:39:53

It's not making anything in the bank so it's one way of making

0:39:550:39:57

another little income, cos we're both pensioners.

0:39:570:40:00

But, it could all be different.

0:40:000:40:02

It could all change because our daughter's just sold her house.

0:40:020:40:05

They haven't bought one yet so I said,

0:40:050:40:07

"You move in there for a couple of months and we'll move here."

0:40:070:40:10

So once it's all done up, we'll see how we feel.

0:40:100:40:13

If we like living here, we'll stay here.

0:40:130:40:15

-If not, we'll go back home and rent this out.

-Right.

0:40:150:40:18

But whichever way you look at it, we've made an investment

0:40:180:40:21

because the money that we've got left in the bank

0:40:210:40:24

is a waste of time, isn't it?

0:40:240:40:26

So it seems like an almost perfect arrangement.

0:40:260:40:29

It even has the potential to be the ideal location.

0:40:290:40:33

Where we're living now -it's a lovely, beautiful village

0:40:330:40:36

but there's not really a lot there.

0:40:360:40:37

There's no bus runs through it and as we are getting older,

0:40:370:40:41

we have to travel to the doctors' and everywhere else.

0:40:410:40:43

There's a surgery here

0:40:430:40:44

-and there's a bus service goes through Darlington.

-Right.

0:40:440:40:47

So we've got a chance of using public transport,

0:40:470:40:50

which we haven't before. There's loads of walks and things.

0:40:500:40:53

The biggest thing we are going to miss...

0:40:530:40:55

-We've always had dogs but we're not allowed a dog.

-Aw-w.

0:40:550:40:58

-That's a shame.

-Never mind.

0:40:580:41:00

Well, they might not have a dog

0:41:000:41:02

for company on their walks around the area

0:41:020:41:05

but they will have plenty to keep them occupied inside.

0:41:050:41:08

They've got a builder sorted

0:41:080:41:10

and they plan a full refurbishment of the bathroom.

0:41:100:41:13

They'll replace the radiators

0:41:130:41:15

and hope to knock the wall down between the kitchen and dining area.

0:41:150:41:19

So, will the kitchen units be staying?

0:41:190:41:22

We'd leave that for the time being

0:41:220:41:24

but if we settled and we really liked it and we thought,

0:41:240:41:26

"Right, we'll move,"

0:41:260:41:28

then I would have it taken out and a brand new one put in.

0:41:280:41:30

So what's the budget for the work you are going to do?

0:41:300:41:34

-Well, we said we would like to see everything done for 10,000.

-Right.

0:41:340:41:38

The windows are going to be at least 5,000.

0:41:380:41:41

Yes, that might be tight.

0:41:410:41:43

Especially if those damp patches are a sign of a bigger problem.

0:41:430:41:47

So what about the timescale?

0:41:470:41:50

Well, we were hoping for the back end of next month

0:41:500:41:53

but we think it's going to take a bit longer!

0:41:530:41:54

-Well, I'm delighted for you.

-Thank you.

0:41:540:41:56

-Congratulations, good luck with it.

-Thank you.

0:41:560:41:59

-I look forward to seeing how you get on.

-All being well!

-Yes.

0:41:590:42:02

So, what do you reckon the probability that Glen and George

0:42:020:42:06

will end up living here is?

0:42:060:42:09

Yeah, pretty high!

0:42:090:42:11

It's great that they love it

0:42:110:42:13

and they're not put off by some of the downsides to the property.

0:42:130:42:16

How will they get on sorting it out?

0:42:160:42:18

You can find out later in the show.

0:42:180:42:21

Well, time has passed and the burning question is

0:42:250:42:28

have our buyers made money on their investments

0:42:280:42:30

or created a beautiful place to live?

0:42:300:42:33

I think we should go back and find out what they've been up to.

0:42:330:42:36

We've come back to Tunbridge Wells,

0:42:400:42:42

where earlier we saw Alfred and daughter Francesca

0:42:420:42:45

plunging head first into the world of auction property purchase,

0:42:450:42:49

seemingly by accident!

0:42:490:42:51

'No intention whatsoever of buying it.'

0:42:510:42:53

So we got there and of course all you have to do is that,

0:42:530:42:55

and we got it!

0:42:550:42:58

The adjective that could best describe their £68,000 purchase

0:42:580:43:02

was "small".

0:43:020:43:03

A top floor studio flat close to the town centre,

0:43:040:43:07

with a kitchen/living room, compact bathroom

0:43:070:43:10

and, well, not much else really.

0:43:100:43:12

Yeah, it's a bit more neat and tidy than I thought it was.

0:43:120:43:15

And very small.

0:43:150:43:17

Not that Alfred and Francesca knew this.

0:43:170:43:20

This viewing was the first they'd seen it.

0:43:200:43:22

That's right, they hadn't viewed it before purchase,

0:43:220:43:25

nor read the legal pack

0:43:250:43:27

or realised the potential drawback of buying a leasehold property.

0:43:270:43:31

These two broke every rule in the Homes Under the Hammer handbook!

0:43:310:43:35

If they had read the legal pack,

0:43:350:43:36

they would have known that £68,000 wasn't all they had to pay.

0:43:360:43:41

We paid more than that because when we got the legal pack

0:43:410:43:44

-we were responsible for the seller's...

-Fees.

-..fees

0:43:440:43:46

and the auctioneer's fees, which were 3,000.

0:43:460:43:49

Planning to renovate and sell on,

0:43:490:43:50

they had set themselves a budget of around £5,000

0:43:500:43:54

and a timescale of four weeks.

0:43:540:43:57

It's been nearly three months since our last visit.

0:43:570:44:00

So, let's see how our intrepid duo fared.

0:44:010:44:04

Well, not only am I pleasantly surprised,

0:44:100:44:13

I'm also relieved!

0:44:130:44:14

I wasn't quite sure what to expect

0:44:160:44:18

but I think this has been a job well done.

0:44:180:44:21

The old kitchen has been ripped out

0:44:210:44:23

and replaced by new units and worktops,

0:44:230:44:25

a sleek hob and oven

0:44:250:44:27

and finished with tiled splash back and tile effect floor.

0:44:270:44:31

This space has been turned into a modern and desirable kitchen area.

0:44:310:44:35

Doesn't it look great?!

0:44:350:44:37

That grubby bathroom has been totally revamped

0:44:400:44:42

and now looks fabulous.

0:44:420:44:44

The room has been extended ever so slightly into the corner

0:44:440:44:47

and the toilet moved to the adjacent wall.

0:44:470:44:50

Alfred and his wife, Sue, and daughter, Francesca,

0:44:510:44:54

chipped in where they could

0:44:540:44:56

but most of the work was carried out by a local plumber.

0:44:560:45:00

The only person we knew was Rodney, who was a plumber in the village.

0:45:000:45:03

So Rodney came round the next evening and we got together.

0:45:030:45:07

He knew an electrician and a plasterer, etc,

0:45:070:45:11

so we got a team together quite quickly.

0:45:110:45:13

Alfred has discovered that property renovation

0:45:150:45:18

isn't an exact science.

0:45:180:45:21

From my point of view, I was a science teacher.

0:45:210:45:23

So I've been trained in science and science is quite a nice thing.

0:45:230:45:27

You do a few experiments and something predictable happens.

0:45:270:45:31

This was more of an artistic venture, you know?

0:45:310:45:33

A creative thing and that's where it all went wrong,

0:45:330:45:37

because there were no ideas in my mind of what it should look like.

0:45:370:45:40

So we did bit by bit and it gradually came together.

0:45:400:45:43

And so now it looks quite presentable, anyway.

0:45:430:45:45

Quite pleased with it.

0:45:450:45:47

In the living room-cum-bedroom,

0:45:480:45:50

the cupboard has been removed to create a small alcove

0:45:500:45:53

and modern heaters have replaced the old.

0:45:530:45:55

Ceiling spots have been installed

0:45:570:45:59

and the woodchip and textured ceiling has been stripped off.

0:45:590:46:02

I bet that was a fun job!

0:46:020:46:04

You would have thought you could come in here

0:46:040:46:07

and plaster it and decorate it in two or three days.

0:46:070:46:10

It took the best part of two weeks to do all that

0:46:100:46:12

so that put us back.

0:46:120:46:14

So the estimate of four weeks plus the two weeks for the woodchip

0:46:140:46:19

is about right. It took pretty much six weeks.

0:46:190:46:21

The only thing we did to improve the space -

0:46:210:46:23

we put the wall in the bathroom back about two feet

0:46:230:46:26

and that has made a considerable difference to it.

0:46:260:46:29

But I think it's very limited as to what we could do.

0:46:290:46:33

Relying on Rodney and his team of tradesmen to carry out the work,

0:46:340:46:38

did they manage to keep within their budget of £5,000?

0:46:380:46:42

We decided to put Rodney on a day rate.

0:46:430:46:46

It turned out very much more expensive than we thought.

0:46:460:46:49

When you do the calculations... certainly 9,000.

0:46:490:46:52

It was way over budget but,

0:46:520:46:53

you know, we're not worried about that too much.

0:46:530:46:56

So a future thing, I think, we'd get a price for the job.

0:46:560:47:00

Oh, well, that's not good news!

0:47:000:47:02

A day rate is a sure way to lose control of the budget.

0:47:020:47:05

Add that £9,000 to the £68,000 purchase price

0:47:050:47:10

and the total comes to 77,000.

0:47:100:47:13

Has the refurbishment been good enough

0:47:130:47:16

to add value onto their investment?

0:47:160:47:18

We invited to local estate agents to visit the flat

0:47:200:47:23

and give us their opinion.

0:47:230:47:26

I think they've done a fantastic job.

0:47:270:47:29

I think they've made it light and bright

0:47:290:47:32

and they've made really good use of the space.

0:47:320:47:34

I think they've been very clever about what they've done

0:47:340:47:37

and I think it's a lovely place.

0:47:370:47:39

Standard of finish in here is good for what it is.

0:47:390:47:43

They put a modern kitchen in, they've done a modern shower room.

0:47:430:47:46

I think they've got the balance right in terms of

0:47:460:47:48

making something look good and presentable without overspending.

0:47:480:47:51

Location wise, you've got a train station just down the road,

0:47:510:47:54

which takes you into London.

0:47:540:47:56

You've got the town centre just the other way.

0:47:560:47:59

So anybody who wants to commute,

0:47:590:48:00

anybody who wants to be in the centre of a town,

0:48:000:48:02

with shops on their doorstep, would be very keen to live here.

0:48:020:48:05

It's a beautiful area.

0:48:050:48:07

A positive response

0:48:070:48:09

but what value would they put on this studio flat

0:48:090:48:12

if they were to put it on the rental market?

0:48:120:48:14

For rental, I would expect it to go on the market

0:48:140:48:17

at something just under the £500 a month,

0:48:170:48:20

to achieve about £475 per calendar month.

0:48:200:48:24

I think you would be looking at between £500 and £550 per calendar month.

0:48:240:48:30

Well, that's good, isn't it?

0:48:300:48:32

So in terms of doing the sums...

0:48:320:48:36

5/8ths is about 7%, or something.

0:48:360:48:39

Yeah, sounds good, doesn't it?!

0:48:390:48:40

Almost a gold star, Alfred!

0:48:400:48:43

It's actually nearer 8%,

0:48:430:48:44

an attractive return for a buy to let property

0:48:440:48:48

but selling is Alfred's plan.

0:48:480:48:50

So over to the experts.

0:48:500:48:52

If the property goes on the market for sale,

0:48:520:48:54

I would expect it to go on something in the early £90,000 range,

0:48:540:48:59

hoping to achieve around about £90,000.

0:48:590:49:02

If the owner was going to sell the property,

0:49:020:49:04

I think he'd achieve in the region of £100-105,000.

0:49:040:49:08

HE GIGGLES Sorry!

0:49:080:49:11

Right, OK, brilliant! Sold!

0:49:110:49:14

Well, don't get too excited, Alfred!

0:49:140:49:16

You will still probably have to negotiate with the leaseholder

0:49:160:49:20

to extend the lease,

0:49:200:49:21

ensuring you get top price when you sell the flat.

0:49:210:49:23

But excluding that cost, and other fees and taxes,

0:49:250:49:28

the top valuation could mean a profit of 28,000.

0:49:280:49:32

Well, we're very happily surprised at that

0:49:320:49:34

because we've been thinking all along,

0:49:340:49:37

cos it's cost about 80,000,

0:49:370:49:39

that we'd be struggling to get that back

0:49:390:49:41

and it looks as though we may make a small profit.

0:49:410:49:44

It's a fish and chips supper tonight for you girls! This is it!

0:49:440:49:48

We can go and celebrate! Fantastic, look at that!

0:49:480:49:51

No, brilliant!

0:49:510:49:53

So, will there be fish and chip celebrations here in North Yorkshire

0:49:570:50:01

for George and his wife Glen?

0:50:010:50:04

A retired couple who had spent £92,000 buying this

0:50:040:50:07

three-bed mid-terraced house in the village of Croft-on-Tees.

0:50:070:50:12

With it came a rather restricted list of conditions.

0:50:120:50:16

It all comes down to the location right next door to a hotel,

0:50:160:50:20

and the hotel literally owns the land all the way up.

0:50:200:50:24

You can't hang out washing, you can't have pets,

0:50:240:50:26

like a dog or a cat, and you can't put plant pots and things,

0:50:260:50:29

anything which might interfere with the running of the hotel.

0:50:290:50:32

Undeterred, the couple saw this

0:50:320:50:34

as an ideal investment for their savings,

0:50:340:50:37

possibly a buy-to-let opportunity or even a new home for themselves.

0:50:370:50:41

But certainly a project that would spice up their retirement.

0:50:410:50:45

We downsized four years ago and we have a little bit of money left,

0:50:450:50:49

and we needed to put it to some good use.

0:50:490:50:51

It's one way of making another little income.

0:50:510:50:54

For an auction property,

0:50:540:50:55

it was in pretty fair condition throughout, although sections

0:50:550:50:59

of wall and ceiling were damp and the windows were rotten.

0:50:590:51:03

They'd budgeted a total of £10,000 to upgrade the house,

0:51:030:51:07

and were pretty relaxed about how long it would take to complete.

0:51:070:51:11

Well, we were hoping for the back end of next month,

0:51:110:51:14

but we think it's going to take a bit longer.

0:51:140:51:17

Well, it's been nine months since we visited.

0:51:170:51:20

I can't wait to see what they've achieved.

0:51:200:51:23

Huh, this place looks great!

0:51:310:51:33

It's still a work in progress, but it's light, spacious and welcoming.

0:51:330:51:37

What have George and Glen been up to since our first visit?

0:51:390:51:43

What we've done actually is the roof, we've lifted the floor up in the

0:51:430:51:47

front room that needed doing, put new radiators in,

0:51:470:51:50

we've knocked this wall out to make it look much bigger, much nicer.

0:51:500:51:54

We've had to have the walls replastered, because when we took

0:51:540:51:58

the Anaglypta off, the walls were quite bad,

0:51:580:52:01

and we decided to have that done.

0:52:010:52:04

So we have done quite a lot that we didn't expect to do.

0:52:040:52:07

They've been quite busy then.

0:52:090:52:11

The job that George is most proud of is in the living room.

0:52:110:52:16

Well, this was the fireplace.

0:52:160:52:17

Originally, as you can all see, it was all blocked off.

0:52:170:52:21

We cut it out, and what we found behind it was

0:52:210:52:23

all full of rubble, rubbish, everything was in there.

0:52:230:52:26

We cleaned it all out and then decided what to do with it.

0:52:260:52:29

First of all we boarded it out, with the boards,

0:52:290:52:33

and Glen didn't like it, so we took them out and threw them away.

0:52:330:52:37

The sandstone we had, we cut it, shaped it, put sandstone in.

0:52:370:52:42

Glen didn't like that, so we took the sandstone out,

0:52:420:52:46

found some old bricks, shaped them, cut them in and fitted them,

0:52:460:52:49

and that was the finished result.

0:52:490:52:51

Put the two sides in, and Glen actually liked it.

0:52:520:52:55

So I would hope it's a feature, with the light on to make it look better.

0:52:550:53:01

Hopefully we can sit and watch that. Instead of watching telly all night.

0:53:020:53:06

MUSIC: Love and Marriage by Frank Sinatra

0:53:070:53:09

Changing a fireplace three times?

0:53:110:53:14

Huh, if that isn't love, I don't know what is!

0:53:140:53:18

If the fireplace was George's labour of love,

0:53:180:53:21

then there were other tasks that were just...well, labour.

0:53:210:53:26

The damp-proof, when we took the Anaglypta off,

0:53:260:53:29

was all the way along, especially this back wall,

0:53:290:53:32

because outside the whole house was earth and gravel.

0:53:320:53:37

And the rain was coming straight through,

0:53:370:53:39

so we took it all up, erm, we've come in a foot,

0:53:390:53:42

-GLEN SIGHS

-alongside all the walls,

0:53:420:53:44

and went down a foot and rendered it with waterproof concrete to

0:53:440:53:48

stop anything coming through and up again.

0:53:480:53:51

A fiddly job, wasn't it?

0:53:510:53:52

It was backbreaking, it nearly killed me,

0:53:520:53:55

I was falling asleep all the time.

0:53:550:53:56

So we'll never have a problem again. We hope!

0:53:560:54:00

In the kitchen, George and Glen were quite happy with the

0:54:040:54:08

original units, leaving them unchanged for now.

0:54:080:54:11

The shortening of that dividing wall was a great idea and makes

0:54:110:54:15

such a difference to the kitchen dining area.

0:54:150:54:17

Upstairs, the master bedroom now has an en-suite,

0:54:190:54:22

a good addition to a family home.

0:54:220:54:25

The two other bedrooms have been decorated throughout

0:54:250:54:27

and the bathroom has had a lick of paint and new flooring.

0:54:270:54:31

Upstairs and down,

0:54:340:54:35

ceiling spots bring a modern feel to a traditional building.

0:54:350:54:39

The rot on the window frames has been repaired on the inside,

0:54:390:54:42

but there is still work to be done on the exterior.

0:54:420:54:45

The original budget of £10,000, which included money to

0:54:480:54:51

replace the windows, has been overshot by two grand.

0:54:510:54:56

But I think George and Glen have fallen for this place big time,

0:54:560:54:59

and are starting to treat it like their new home.

0:54:590:55:02

MUSIC: "Is This Love?" by Whitesnake

0:55:040:55:06

You just get a feeling, don't you?

0:55:140:55:16

We've had this feeling,

0:55:160:55:17

and every time we drove up it got stronger and stronger,

0:55:170:55:20

and every time I've come here it got stronger and stronger,

0:55:200:55:22

and I do, I love it.

0:55:220:55:24

I think I'd love living here, I'd be very happy, but we won't know

0:55:240:55:28

until we try it - IF we try it.

0:55:280:55:31

If we sell our house now, we'd definitely move in.

0:55:310:55:35

If we don't, we'll have to rent one of them off, so...

0:55:350:55:38

Head over heels.

0:55:450:55:47

This lovey-dovey stuff is all very well, but it won't pay the bills.

0:55:470:55:52

With that in mind,

0:55:540:55:55

we asked two local estate agents to come along and put some

0:55:550:55:59

figures on the hard work that George and Glen have put in.

0:55:590:56:02

First impressions of the property, it's very light, nice and neutral

0:56:040:56:07

decor, very appealing, lots of light coming in and spacious rooms.

0:56:070:56:12

I think with the right standard of finish this property will

0:56:120:56:15

appeal to all avenues of the market.

0:56:150:56:17

Upsizes, people that are looking for a village location.

0:56:170:56:20

Adding the 12 grand spend to the auction price of 92,000,

0:56:200:56:25

George and Glen have so far spent £104,000.

0:56:250:56:29

If they decided to rent this property out, what could it achieve?

0:56:300:56:35

For rental purposes, I would expect the property to

0:56:350:56:37

achieve around £600 per calendar month.

0:56:370:56:40

For rental, I would value this property at between £595

0:56:400:56:45

to £625 per calendar month.

0:56:450:56:46

That's great news.

0:56:470:56:49

A rental of £600 per calendar month would represent a return

0:56:490:56:52

of around 7% - that's certainly better than the bank.

0:56:520:56:55

But what about sale value?

0:56:570:56:59

If all of the final touches are finished, I would expect

0:56:590:57:02

the property to sell for somewhere in the region of £140,000 to £150,000.

0:57:020:57:08

I would value this property at between £150,000 to £160,000.

0:57:080:57:13

-Wow!

-One SIXTY thousand?

0:57:130:57:15

Oh, you've made my day.

0:57:150:57:17

That's unbelievable, that, I didn't expect anything near that,

0:57:170:57:20

I was expecting maybes 120, 25, 30...

0:57:200:57:24

But...you've got to sell it.

0:57:240:57:26

It is a lovely property, we're pleased with it.

0:57:260:57:28

-LAUGHING:

-I'd be pleased with those figures too!

0:57:280:57:31

Excluding tax and fees,

0:57:310:57:33

a sale at 160,000 would bring in a potential profit of £54,000.

0:57:330:57:39

A tidy sum for this supposedly retired couple.

0:57:390:57:43

It's kept us busy, because believe you me,

0:57:460:57:48

you think you want to retire - you don't, it's very boring.

0:57:480:57:52

So I've enjoyed it. Would I do it again,

0:57:520:57:54

with my 40-year-old head on? Oh, yes.

0:57:540:57:57

Bring it on!

0:57:570:57:58

Well, we hope you've enjoyed today's programme

0:58:060:58:09

and perhaps got some inspiration from our buyers.

0:58:090:58:13

We'll see you next time with more property stories.

0:58:130:58:16

-Goodbye for now.

-Bye.

0:58:160:58:17

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