Episode 70 Homes Under the Hammer


Episode 70

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Transcript


LineFromTo

Hello, and welcome to the show.

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Now, property prices are on the up in certain parts of the country

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which is great news if you're a seller but if you're a buyer,

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well, it makes getting a bargain a little harder.

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Oh, it certainly does, Martin.

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You've just got to do your homework to get the right area

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for the right price...

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Martin, where is a good place to search?

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At the auction.

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You're likely to see a wide range of properties at auction

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to suit all tastes and budgets.

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So let's take a look at what went under the hammer on today's show.

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'Today on Homes Under The Hammer,

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'a three-bed in Ebbw Vale has a surprising interior.'

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That's an interesting design style -

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building site look.

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'In London, a beautiful basement flat has a nasty surprise -

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'damp.'

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That could cost thousands of pounds.

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'But there's no surprises in Workington.

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'You know the layout of this two-bed terrace.'

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What do you think's next? Go on, guess - kitchen.

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You've seen properties like this

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a million times before on Homes Under The Hammer.

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All these properties were bought at auction.

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We'll find out who got them

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and how much they paid when the homes went under the hammer.

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Your flat, sir.

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I'm in the village of Waunlwyd, South Wales, in Ebbw Vale.

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An area where the communities and culture

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grew around coal and other heavy industries, like steel.

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The bad news, economically speaking,

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was the closure of the steelworks in 2002.

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Well, this whole area was once badly blighted by pollution

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from the Ebbw Vale Steelworks nearby.

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But since the closure of those steelworks,

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the environment has generally got a lot more pleasant and,

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in terms of redevelopment, there's some very good things going on.

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A brand-new sports centre has been built,

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new housing and a new shopping centre.

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So, this could well be a place for a developer to keep an eye on.

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# Whoo whoo whoo Keep an eye

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# Keep an eye

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# On your close friend... #

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Well, on offer at auction, in a very pleasant location,

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was a three-bedroomed mid-terrace.

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This is it.

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The guide price, though,

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£18,000.

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That's not a lot.

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What's the catch?

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# You're as cheap as the perfume

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# That you wear... #

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Ah.

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Well, that's an interesting design style...

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..the building site look.

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HE LAUGHS

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Okey-dokey.

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Well, clearly it's a property that is partway through being renovated.

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Um, but it's odd to see things like these great piles of sand,

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and cement mixers. It's obviously a work in progress.

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One big, big, big room at the front here, though, which I actually like.

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It's got a really good feel to it, really open-plan with these stairs

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probably relocated from where they were originally.

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At least somebody's started it in the right kind of way.

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You don't know how well the work's been done but, yeah, I like...

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Well, actually, strangely enough, I like it.

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Hmm. That said, I'd like it a lot more if it had a bathroom

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which it doesn't,

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and a kitchen,

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which is also doesn't.

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Open sewer there, lovely. Um, OK.

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What does it matter?

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Well, you know, the whole house is being completely refurbished anyway.

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The fact it hasn't got a kitchen or a bathroom, though,

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means it's unmortgageable

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which means you're going to have to fund this with cash

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and then, maybe, apply for a mortgage once the work's done. Er...

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At least it's a blank canvas on which you can do whatever you want.

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This might seem like a gift but before you get mixed up in it

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you shouldn't assume all the work has been done to a good standard.

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I'd still want to check the electrics and plumbing,

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along with what looks like a leaky roof.

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# Just be patient

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# I'm a work in progress. #

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So, upstairs and no surprises. Lots of work here to finish things off.

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But, like downstairs, lots of space.

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A big double bedroom to the front, two slightly smaller bedrooms

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towards the back, but some nice design features.

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For instance, both of these rear bedrooms access

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this little flat-roofed area.

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Now, I don't know if you can sit on it or walk on it

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but that would actually be quite pleasant because...

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..there's actually a really nice view across the garden

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and upwards to the hills.

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Perfect!

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Actually, you'd need to do a safety check on it

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and then it would be perfect.

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But there are some imperfections -

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you shouldn't be able to see your bedroom from the kitchen,

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for example. And there is THAT big negative.

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# We're on a building site I tell ya

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# We're gonna build We're gonna build

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# We're gonna build our love tonight

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# We're gonna build We're gonna build

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# Cos we're on a building site. #

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Let's ask along a local property expert for his thoughts.

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When a property is in such a state as it is at the moment

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it's beneficial to put this into a really good modern standard.

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The market is difficult round here,

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so to try and separate this from the competition,

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putting it into the best standard possible

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will be beneficial for the developer.

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Bearing in mind that tough local market,

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what kind of resale value could you get once renovated?

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I think the property could be worth in the region of £75,000.

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And what could you get for lettings?

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If the property was rented as a three-bedroom, sort of,

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fully modernised, fully renovated property,

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it should achieve in the region of £425 per calendar month.

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Well, it's not often you find an auction property

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with a ready-made place to play with your toys.

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But that's certainly what you get here.

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What you also get, more seriously, is a bit of a project.

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

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Lot number 36.

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You'll have looked at it, you'll have made up your mind,

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lot of interest in this, guided at just £18,000.

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Notice there's a bit of a hush descended over the room.

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We actually have a proxy bid on this so I'm going to just

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make my life easier by starting with the proxy bid at £20,000.

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At 20,000, now one, can I see from somebody?

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21, 22,

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23, 24,

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25, 26,

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27, 28,

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29, 30,

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31, 32,

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33, 34,

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35, 36,

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37, 38,

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39, 40,

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41, 42, 43...

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I'm going to say 45. 46?

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46. Right, then. Proxy bidder's out. £46,000?

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47 now to somebody?

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At 46, then, it's...with you, sir.

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That was short and sweet, wasn't it?

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If only they were all like that. At £46,000, then, for the first time.

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At £46,000 for the second time.

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Third and last time, at £46,000, there we go.

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Number 14, thank you very much.

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Wow! You don't see that every day at the auctions.

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And the buyer, Andy, certainly won't have seen that before

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as this was his first ever auction.

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His successful bid of £46,000 got him his first project

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and I met up with him at the property,

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or should that be building site?

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-Andy, good to meet you.

-Hello.

-Congratulations.

-Thanks.

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

-I... As an investment.

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-Er, to basically do up and sell on.

-Right.

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Have you got expertise in that kind of thing?

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Um, I'm a bathroom and kitchen installer, um,

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so I do this sort of thing generally but for somebody else.

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It's perfect, then, because it hasn't got a kitchen or a bathroom!

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No kitchen, no bathroom. Definitely not. No.

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An unusual property,

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probably would put a lot of people off, the state it's in.

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Um, yes, but it's...

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Essentially, once you see past what was here with the piles of junk

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and stuff, then, yeah, it's not too bad.

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So tell me the process. What are you going to do to make it liveable?

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Er, we have builders coming in...shortly.

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Um, we have to do some drainage, we have to repoint part of the outside,

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re-render the outside. It's already had a pretty reasonable rewire done,

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we've just had a new fuse board put in.

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Er, obviously, it's going to need a huge clean, decorate,

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there's still plastering to finish off... Kitchen and bathroom.

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-Keep the layout pretty much as it is?

-Absolutely. It seems ideal.

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-Yeah, it's nice.

-It's perfect.

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And then you've obviously got the flat roof area

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which is accessed upstairs,

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that looks like it's been leaking, or something...

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-Yes, certainly. Yeah, absolutely.

-What are your plans for that?

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Er, the builder's coming to have a look at that, basically,

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in a couple of hours' time.

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When he does have a look at that I also want him to tell me

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if it's structural, if we can stand on it,

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because it does appear that they've made it

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as if you were going to have a balcony from there.

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-Yep.

-With twin, sort of, patio doors going on to it.

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-Which could be quite pleasant.

-So, hopefully, turn it into a balcony.

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'Andy will continue working on fitting kitchens and bathrooms

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'while developing this house.

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'But he also has another reason for being here.'

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I am in South Wales quite often

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because I go kayaking around this area.

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Oh, right, is it good for kayaking?

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It is, a little bit further over, but, yes, it is good round here.

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What are the good rivers for kayaking?

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-There's one called the Mellte which is very nice indeed.

-Right.

-Mm.

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So, hopefully we won't have too much rain

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and we'll actually get some work done

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-rather than skiving off and going kayaking.

-Yeah!

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I reckon Andy is certainly not going to be up a creek without a paddle

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with this property. However, there is one major issue.

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-I'm in Letchworth, Hertfordshire.

-Not local at all, then?

-No, no.

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It did mean a very early start this morning.

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That must be a two, three, four hour, even, commute, is it?

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Er, three hours and a bit, three and a half.

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And how are you going to, sort of, manage that, then?

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Driving down, staying with friends

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and then, when this is vaguely liveable,

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I'll come in here, sleep upstairs,

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install things and paint, and stuff like that, at the same time.

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Now I'm worried it's his car,

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and not his kayak, he's going to be spending all his time in.

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He's going to have to factor in added time and petrol costs

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to the equation. In my experience,

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you want to spend more time renovating than accelerating.

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Andy plans to sell this on and he has his eye on

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a retail price of £90,000, based on a local sale.

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So, how much does he plan to spend?

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-12 to 15 to do it up. If I can spend any less, obviously, I will.

-Right.

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-Um, but, obviously, that's not including my own time.

-Of course.

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Um, so, see how it goes, really.

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Tell me about the kitchen and the bathroom, what are you going to do?

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I will probably go for, sort of, painted finish on the kitchen,

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although it's whatever I can get at the right sort of price.

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And reasonable quality bathroom suite. Um...

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Just, yeah, kind of tidy it up

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and actually put something in there that works.

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It's going to be very different when we return.

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-I hope so.

-When will that be? How many months?

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Oh, there's a very good question.

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It depends on my workload back at home.

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So, two or three months or so.

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Um, it should be...

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..easily done, but that's famous last words.

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-Well, congratulations.

-Thank you.

-Good luck with it.

-Thanks a lot.

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-I look forward to seeing how you get on.

-Cheers.

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Well, it seems that Andy has the perfect skills needed

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to sort out a place that would faze a lot of people.

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He's a kitchen and bathroom fitter,

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it doesn't have either of those, so, fantastic.

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The only challenge will be making sure

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he doesn't spend too much time in his kayak, locally,

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rather than sorting the house out.

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How will he get on? You can find out later in the show.

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Welcome to West Dulwich in Southeast London.

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The area is thriving with shops, bars and cafes,

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and is very popular with young professionals and families,

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thanks in no small part to the train station,

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which will get you to London Victoria in 14 minutes.

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So West Dulwich gets a big tick from me,

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but what about the property I'm here to see?

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Well, so far I AM feeling positive, because this...

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Well, it's a lovely residential road and West Dulwich's shops and cafes

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are only a five-minute walk away from here.

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But will that feeling continue?

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Well, I am here to see a one-bedroom flat

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and it had a guide price of £190,000.

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And it's in this lovely Victorian building.

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Looks great from the outside.

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It goes up one, two, three storeys.

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No, I'm not going all the way up.

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I am going down into the basement.

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Now, basement flats can be quite dark and dingy.

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Fingers crossed it's not too bad down there.

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# Get down, deeper and down

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# Down, down, deeper and down. #

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One positive is that the side entrance

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means you do have your own access to the property.

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But will that entrance just lead to a dark flat?

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Oh, wow!

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What is not to like?

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This is a big surprise.

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What you have to get right with a basement flat is lighting.

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It's so important that it's not dark and dingy,

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and it's a nice, light and bright space.

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This is almost like it's recently been renovated.

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You've got a fabulous bathroom through there.

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I mean, look at that! I fancy taking a shower in there myself

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and I rarely say that on Homes Under The Hammer.

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-And the kitchen!

-SHE GASPS

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I'm going to investigate!

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It's really nice.

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Yeah, the kitchen looks great,

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with a modern boiler and very new appliances.

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The bedroom is a good size, too,

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with clean fitted carpets,

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and the lounge has a really nice feature fireplace

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and looks like it's been freshly painted.

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But what really brings the whole flat to life

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and stops it feeling like a classic basement flat

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is that there's a brilliant combination

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of big windows and good lighting.

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# Light up, light up

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# As if you have a choice

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# Even if you cannot hear my voice... #

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Goodness, this feels like we filmed it after rather than before.

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But I have noticed some worrying signs.

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There could be a real issue for this flat. Come here.

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Just have a look down here.

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That is white mould caused by damp.

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All of that. And there are signs of it in all the rooms, everywhere.

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Now, I would employ a damp specialist straight away

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to assess the cause of the problem.

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It might not be too much to worry about,

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but, if it is, well you might need to strip back the whole flat,

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the flooring, say goodbye to that nice kitchen,

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and that lovely bathroom.

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That could cost thousands and thousands and thousands of pounds.

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# We really got a problem

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# We don't know how to fix, yeah. #

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Damp can be a serious problem.

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The three most common kinds are rising damp, penetrating damp

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and condensation.

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If you want to know what to look out for,

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with rising damp the clues are dodgy skirting and floorboards,

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salt-stained plaster and peeling paintwork.

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Ring any bells here? Hmm.

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I think it's time to find something positive

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to perk up any prospective purchaser.

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So I'm going to deliver some news

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that every London flat owner would like to hear.

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This property comes with a bit of garden!

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Now, there's 38 feet to be had of this lovely,

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well-kept, outside space area.

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So I think that's up to about here.

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So, great news if you'd like to have a barbecue,

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sit outside on a sunny day,

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I mean, really fantastic for a little London flat like this.

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As well as this outside space,

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there's a 99-year lease to go with it.

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That damp is the only downside of this basement flat,

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guided at 190,000.

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So what does a local estate agent think?

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So, a basement flat, they do have a stigma.

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I feel this is more of a lower ground flat,

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and I don't want to make that as a spin,

0:17:200:17:22

but in reality it's got a lovely bay window,

0:17:220:17:24

it doesn't feel particularly basement-y to me.

0:17:240:17:27

So I don't think you'd have an issue in terms of moving it on.

0:17:270:17:30

On first glance, it's lovely

0:17:300:17:31

but I suspect there's a little bit to do here.

0:17:310:17:33

The main issue here is that you've got damp on the internal walls

0:17:330:17:36

as well as the external walls.

0:17:360:17:38

So it could be a case that you may have to take all of the walls

0:17:380:17:41

back to brick, put a damp proof course in, reline it, essentially.

0:17:410:17:45

And that could cost anything up between 10,000 to 20,000

0:17:450:17:49

to do a large-scale job, if it's as severe as that.

0:17:490:17:52

So, potentially, there could be a lot of work -

0:17:520:17:56

a lot of expensive work.

0:17:560:17:57

But would all that work be worth it

0:17:570:17:59

if this flat could be bought for its guide price of £190,000?

0:17:590:18:04

Well, let's get some valuations.

0:18:040:18:07

If this flat was to come back to the market in good condition

0:18:070:18:10

throughout, I would expect this to achieve

0:18:100:18:12

circa £325,000 to £350,000.

0:18:120:18:17

Wow! That's a lot of profit potential.

0:18:170:18:20

And for rental?

0:18:200:18:22

In good condition presented back to the market,

0:18:220:18:24

I can see this flat achieving between £1,150 per calendar month

0:18:240:18:28

to £1,250 per calendar month.

0:18:280:18:30

Now, it's not too dark and dingy in here

0:18:320:18:35

and, on face value, it looks pretty good.

0:18:350:18:38

But the damp issue could easily transform this

0:18:380:18:42

from a straightforward project into a real money pit.

0:18:420:18:46

Let's head to the auction

0:18:460:18:47

and find out who was prepared to take this on.

0:18:470:18:50

Basement flat is next.

0:18:510:18:53

The self-contained, lower ground floor flat, this one.

0:18:530:18:56

What shall we say for it? Will you start me at 200 for it?

0:18:560:18:59

You will, thank you. Straight away, 200.

0:18:590:19:01

202 now. 200 I have.

0:19:010:19:04

202. 204?

0:19:040:19:06

204. 206.

0:19:060:19:07

208?

0:19:070:19:08

208. 210?

0:19:100:19:12

I'll take 210 from you, madam. Thank you. 212...?

0:19:120:19:15

This lot proved popular and that guide price of £190,000...

0:19:150:19:19

Huh, well, it became a distant memory.

0:19:190:19:21

We now rejoin the bidding at 272,000.

0:19:210:19:25

Yours, madam, at 272, at the moment.

0:19:250:19:28

275 anywhere else?

0:19:280:19:30

Against you, over here.

0:19:300:19:31

Yours at 272.

0:19:310:19:33

275, 278, 280.

0:19:330:19:35

Are you sure?

0:19:360:19:38

278 with the lady here for the first.

0:19:380:19:41

278 for the second.

0:19:410:19:43

Third and final time...

0:19:430:19:46

Your flat, madam. 278,000. Your bidder number, please?

0:19:460:19:50

Getting the property for £88,000

0:19:500:19:52

over the guide price was Julia.

0:19:520:19:54

This £270,000 purchase

0:19:560:19:59

is the third property in her portfolio.

0:19:590:20:02

She's a primary school teacher,

0:20:020:20:03

so I'm hoping she's going to go to the top of the class

0:20:030:20:06

with the research she's done on this flat.

0:20:060:20:10

-Julia, congratulations.

-Thank you very much.

-Lovely to meet you.

0:20:100:20:14

Now, you look like a happy person that's bought a flat that they love!

0:20:140:20:17

I'm so happy.

0:20:170:20:18

I was expecting it to be really run down, damp.

0:20:180:20:22

So, this one, I was just pleasantly surprised.

0:20:220:20:25

I mean, that's the first thing that struck me.

0:20:250:20:27

You walk through the door and it's like somebody's renovated,

0:20:270:20:31

-decorated and made it look nice to sell.

-Absolutely.

0:20:310:20:34

Now, I am just gone to backtrack a little bit, cos you said "damp".

0:20:340:20:38

-Yeah, there's...

-There is damp.

-There is damp, yeah.

0:20:380:20:42

Do you know about the damp? Or have you just found out about the damp?

0:20:420:20:45

I've just, this morning...

0:20:450:20:47

I had a chat with the guy who sold me the flat.

0:20:470:20:51

So he's going to take me for a drink this afternoon in the pub

0:20:510:20:54

and we're going to sit down

0:20:540:20:55

and he's going to share what he knows about the damp issues.

0:20:550:20:58

So there is a damp issue here.

0:20:580:21:00

Now, how do you feel about that and what do you know about damp?

0:21:000:21:03

Not much.

0:21:030:21:04

I'm just going to go out and find a damp specialist

0:21:040:21:07

and, hopefully, he can come and do his magic,

0:21:070:21:10

and fix the problem, I'm hoping!

0:21:100:21:13

-You just want him to wave a magic wand?

-Yeah!

0:21:130:21:15

I mean, you know, hopefully, you know,

0:21:150:21:18

he can just work out what the problem is,

0:21:180:21:20

what's causing the damp.

0:21:200:21:21

I think there is a history...

0:21:210:21:24

of 30 years of damp.

0:21:240:21:26

This is what the vendor has just told me.

0:21:260:21:29

So... But maybe he just didn't do the damp treatment properly?

0:21:290:21:33

Oh, I love your positivity!

0:21:330:21:35

You see, I'm thinking basement flat equals damp equals...

0:21:350:21:39

This is what I don't want to happen to you, that you have to

0:21:390:21:42

bring everything up, ie pull your kitchen out,

0:21:420:21:45

pull your bathroom out,

0:21:450:21:47

everything that looks fabulous, all this flooring,

0:21:470:21:49

-everything has to all come up...

-It's possible.

0:21:490:21:52

..and you then have to treat the damp.

0:21:520:21:54

Now, that would be worst-case scenario for you.

0:21:540:21:56

That would be worse.

0:21:560:21:57

But are you prepared for that, cos that may happen here?

0:21:570:21:59

You take a chance when you go to the auction.

0:21:590:22:01

But I still think that this is a good investment

0:22:010:22:04

and even if I have to do that, so be it.

0:22:040:22:06

I still feel that this flat is well worth it.

0:22:060:22:09

# Mr Magic, Magic

0:22:090:22:12

# Magic man. #

0:22:120:22:16

Oh, Julia, I love your positivity

0:22:160:22:19

but this could be a very expensive lesson.

0:22:190:22:21

However, she is absolutely right.

0:22:210:22:24

Once this flat is sorted, it will become brilliant.

0:22:240:22:27

But without a magic man,

0:22:270:22:28

I think treating the damp could be a large and costly job.

0:22:280:22:32

So what sort of budget have you got for the work here?

0:22:350:22:38

Well, I was hoping, when I first looked around,

0:22:380:22:42

when I did the viewing, I thought,

0:22:420:22:44

"Oh, it's only going to be a couple of grand, a bit of paint", you know.

0:22:440:22:47

I could see a bit of damp but I thought, "It doesn't look too bad."

0:22:470:22:49

So, I'm hoping it's just going to be a couple of grand.

0:22:490:22:53

But I really don't know at this point.

0:22:530:22:56

Do you have a budget? Do you have a substantial amount

0:22:560:22:59

that you could spend on this, if need be?

0:22:590:23:01

-Not really but I'd have to. I'd have to just take a loan out.

-OK.

0:23:010:23:05

What's your timeframe for this?

0:23:050:23:07

Well, I've got a big, fat mortgage on it

0:23:070:23:09

so I'm hoping to do the work as soon as possible,

0:23:090:23:12

in the next two to three weeks, hopefully.

0:23:120:23:16

-Possibly a month.

-Mm-hm.

0:23:160:23:18

I've got enough for a couple of mortgage payments.

0:23:180:23:20

And then you're desperate to rent this flat out?

0:23:200:23:22

Yeah, I need to, cos, you know,

0:23:220:23:24

every month I've got to find that money, haven't I? So...

0:23:240:23:28

So will you be doing any work to the flat in the short-term?

0:23:280:23:31

No, there's no point until they've sorted out the damp.

0:23:310:23:34

So, when we come back and see you, you may have done everything...

0:23:340:23:37

-Yeah.

-And the kitchen may have gone, the bathroom may have gone.

0:23:370:23:40

-..or you may have done nothing at all.

-No, yeah.

0:23:400:23:43

We'll see. We'll see what the specialists say, the experts,

0:23:430:23:46

and they're going to tell me what my next steps need to be.

0:23:460:23:51

But you still, overall, feel happy?

0:23:510:23:52

I'm chuffed. I'm still happy about it. I think it's a good bargain.

0:23:520:23:55

I can't imagine you getting down about anything actually!

0:23:550:23:58

I'm still happy where I am. Even if it costs more than I think,

0:23:580:24:01

I think, well, I will always get my money back in this area.

0:24:010:24:04

It's a lovely area.

0:24:040:24:05

Julia, Julia, Julia, I'm going to keep my fingers crossed for you.

0:24:050:24:08

-Yeah, me too.

-Will it be really bad damp

0:24:080:24:11

or not so bad damp? We will find out.

0:24:110:24:13

-Time will tell.

-Thank you.

-Lovely to meet you today.

0:24:130:24:16

-Lovely to meet you, too.

-Thank you.

-Cheers.

0:24:160:24:19

Unfortunately, I think Julia has taken on a little more work

0:24:190:24:23

than she intended here and I really hope her spirits aren't DAMPENED

0:24:230:24:28

when she gets to the bottom of this flat's issues.

0:24:280:24:31

Join me later in the programme and you can find out

0:24:310:24:33

if we can award Julia an A for effort

0:24:330:24:37

when all her hard work has been done.

0:24:370:24:39

Coming up - in Workington, it might have an ordinary layout

0:24:410:24:45

but is there a hidden problem?

0:24:450:24:47

It also covers an extension of the next-door neighbour's.

0:24:470:24:50

Could be a bit of an issue.

0:24:500:24:51

And, in London, did Julia fix all that hidden damp?

0:24:530:24:56

The damp will come back and then some,

0:24:560:24:58

which is basically what's happened in this flat.

0:24:580:25:01

Ebbw Vale in Wales is where we return to now

0:25:040:25:07

with its tranquil countryside.

0:25:070:25:09

And, low down in the valley, I found a property that was low on price.

0:25:090:25:14

£18,000.

0:25:160:25:20

That's not a lot.

0:25:200:25:22

What's the catch?

0:25:220:25:24

I was about to wish that I hadn't asked.

0:25:240:25:27

Ah, that's an interesting design style!

0:25:280:25:31

The building site look.

0:25:310:25:34

Strangely enough, I like it.

0:25:340:25:36

Hmm, that said,

0:25:380:25:40

I'd like it a lot more if it had a bathroom

0:25:400:25:44

and a kitchen.

0:25:440:25:46

Yes, the whole place was half-finished

0:25:480:25:50

with building equipment everywhere and plenty of work to do.

0:25:500:25:54

Absence of a kitchen and bathroom was no problem for Andy,

0:25:540:25:58

who fitted them for a living.

0:25:580:26:00

He paid £46,000 for the property

0:26:000:26:03

and, while it was a big commute - over three hours from his home -

0:26:030:26:07

he knew his way around.

0:26:070:26:08

Mostly on the water, that is.

0:26:080:26:11

I am in South Wales quite often

0:26:130:26:15

because I go kayaking round this area.

0:26:150:26:18

So, hopefully, we won't have too much rain and we'll actually

0:26:180:26:21

get some work done rather than skiving off and going kayaking.

0:26:210:26:24

Yeah.

0:26:240:26:25

With a three-month timescale,

0:26:250:26:27

if he could stay off the water,

0:26:270:26:29

Andy wanted to turn this place round sooner rather than later.

0:26:290:26:33

So, two months later,

0:26:330:26:34

is everything shipshape?

0:26:340:26:36

From building site to pleasant sight,

0:27:130:27:15

what has Andy been up to here?

0:27:150:27:18

Somebody had started work on it.

0:27:180:27:20

However, most of it wasn't any good.

0:27:200:27:22

So far, what we've done is, um... stripped the whole place out,

0:27:220:27:26

plastered, painted,

0:27:260:27:28

new kitchen, new bathroom.

0:27:280:27:30

I believe it's its first central heating system ever.

0:27:300:27:34

And just generally smartened it up.

0:27:340:27:36

Apart from not having any central heating,

0:27:360:27:39

it was missing a kitchen and a bathroom.

0:27:390:27:41

I'm glad to report that this property

0:27:410:27:43

found the most appropriate owner ever,

0:27:430:27:46

and it does have a nice, smart bathroom.

0:27:460:27:49

Installed in what was previously an empty space,

0:27:490:27:52

it turned out the plumbing presented some challenges.

0:27:520:27:56

We couldn't find any drainage to start with.

0:27:560:27:58

Fortunately, a builder moved some rubble

0:27:580:28:01

in the bathroom area and found a soil pipe.

0:28:010:28:04

So we've managed to connect onto that,

0:28:040:28:07

extended it to upstairs and put a toilet and basin in there.

0:28:070:28:11

That is a very clever solution to the downstairs bathroom conundrum.

0:28:110:28:15

You don't have to toddle downstairs at night.

0:28:150:28:17

That has to be a good thing.

0:28:170:28:19

And the bathroom hasn't encroached on the bedrooms -

0:28:190:28:22

bonus!

0:28:220:28:23

And how about that kitchen?

0:28:230:28:25

So this is the kitchen area,

0:28:300:28:32

which in the auction particulars said, "Space for a kitchen".

0:28:320:28:35

There was literally nothing here.

0:28:350:28:37

There was no plumbing, there was nothing in the room.

0:28:370:28:40

And I've installed a nice, new kitchen in this,

0:28:400:28:43

which, hopefully, should be nice, because it's what I do for a living.

0:28:430:28:47

A good job by Andy, I would say.

0:28:470:28:49

And another good job is the balcony area.

0:28:490:28:52

When I first viewed this place, I saw there were two doors

0:28:530:28:57

leading out to the flat roof area.

0:28:570:28:58

Maybe not quite as simple as we first thought -

0:28:580:29:00

the flat roof was leaking quite badly. We've had it all resealed.

0:29:000:29:04

So decking and a nice rail, a nice place to sit

0:29:040:29:07

and have a sort of cup of coffee in the morning.

0:29:070:29:09

If you had to wake up and smell the coffee here,

0:29:090:29:11

you'd be quite happy, I'd imagine,

0:29:110:29:13

soaking in a nice view of the valley to start the day.

0:29:130:29:16

However, is Andy happy with his budget?

0:29:160:29:19

I've come in at around 9,000.

0:29:200:29:23

Um... If I carpet it, I will spend another thousand,

0:29:230:29:26

so 10 in total.

0:29:260:29:28

I've obviously saved money on a few areas like the wiring,

0:29:280:29:32

and I do a lot of the work myself.

0:29:320:29:36

Then it's time to put your feet up, Andy.

0:29:360:29:38

The hard work now falls to two local estate agents.

0:29:380:29:43

This is the first time I've viewed this property

0:29:430:29:45

and, to be honest with you,

0:29:450:29:47

I think whoever's done the work here has done a really nice job.

0:29:470:29:51

Obviously, it needs finishing.

0:29:510:29:53

Love the bathroom. I think that's absolutely lovely, really modern.

0:29:530:29:57

Kitchen's nice and I love the idea that you can walk

0:29:570:30:00

straight out onto a terraced garden, effectively, at the back here.

0:30:000:30:04

I think the layout of the property works really well.

0:30:040:30:06

It flows nicely. There's a nice layout downstairs

0:30:060:30:09

with it being open plan.

0:30:090:30:11

And it would be lovely...

0:30:110:30:12

Upstairs, you've got enough space for children, etc, for a small family.

0:30:120:30:16

Bought for £46,000,

0:30:160:30:18

and spending 9,000 here,

0:30:180:30:21

Andy's total spend has been 55,000.

0:30:210:30:24

So, what could it get in terms of resale?

0:30:240:30:26

On the open market, I would put this property on for £90,000

0:30:280:30:33

and I would expect it to achieve in the region of £85,000.

0:30:330:30:36

I would place it on the market

0:30:360:30:40

at £94,500.

0:30:400:30:44

And I would expect it to realise

0:30:440:30:47

around £90,000.

0:30:470:30:50

That top estimate of £90,000

0:30:500:30:53

would net Andy a very nice £35,000 pre-tax profit.

0:30:530:30:59

Was that close to what he'd hoped for?

0:30:590:31:02

It's kind of what I was expecting, figures-wise.

0:31:020:31:05

Um... I've done some research into the local area.

0:31:050:31:08

I've actually viewed a house on this street, so...

0:31:080:31:12

Although that has been reduced by 5,000 since I've been doing this one,

0:31:120:31:15

so it's kind of what I was expecting.

0:31:150:31:18

He did his research and he'll make a profit.

0:31:180:31:21

So, after all this work, has Andy had a chance to take to the water?

0:31:210:31:25

Sadly, this is in a great area for kayaking, there's been plenty of rain

0:31:280:31:32

and I haven't been once since I've been here.

0:31:320:31:34

I've been far too busy.

0:31:340:31:36

To the west of Cumbria lies the industrial town of Workington.

0:31:420:31:47

It has long been a producer of coal, steel and iron ore,

0:31:470:31:50

and was famed for the manufacture of railway track.

0:31:500:31:54

This black steel column in the town centre

0:31:540:31:57

commemorates Workington Steel.

0:31:570:31:59

# I was born in a small town. #

0:31:590:32:01

Rail tracks made in this town were so widely exported

0:32:030:32:06

that it was said that, "Workington rails held the world together."

0:32:060:32:10

Well, I'm also making tracks to see a local property

0:32:110:32:14

guided at £25,000 plus.

0:32:140:32:17

So let's see what you can get for that kind of money in these parts.

0:32:170:32:21

Well, ten minutes' walk from the town centre,

0:32:220:32:24

how about a two-bedroomed mid-terrace?

0:32:240:32:28

Looks all right from the outside. Let's take a look.

0:32:280:32:30

It's staggering to think that in London £25,000

0:32:320:32:35

wouldn't even pay a deposit for a house like this.

0:32:350:32:38

So what's this place like inside?

0:32:380:32:41

So what have we got?

0:32:440:32:45

Um... A little entrance porch here,

0:32:450:32:47

and then into your front sitting room.

0:32:470:32:50

Fireplace has been removed, you want to put something nice back there.

0:32:500:32:53

But it's not a bad space.

0:32:530:32:55

Er, storage radiators, so no central heating,

0:32:550:32:59

I would hazard a guess.

0:32:590:33:01

Stairs up to your two bedrooms there

0:33:010:33:03

and then through into your rear living area.

0:33:030:33:05

Um, what do you do with this?

0:33:050:33:08

Dining room? Change the kitchen round...?

0:33:080:33:11

I don't know. But it's not a bad size space,

0:33:110:33:13

little courtyard out the back.

0:33:130:33:15

And then through into... I mean, this is, what do you think's next?

0:33:150:33:18

What you think's next? Go on, guess.

0:33:180:33:20

Yep, kitchen. You've seen properties like this a million times before

0:33:200:33:23

on Homes Under The Hammer.

0:33:230:33:25

It's a classic design

0:33:250:33:26

but is that because, in general, it works quite well?

0:33:260:33:29

So through here into this little kitchen area.

0:33:290:33:31

It's a bit tight cos it's quite narrow.

0:33:310:33:35

So, maybe some kind of extension, perhaps?

0:33:350:33:37

Through there, though, is your bathroom.

0:33:370:33:39

Again, a very classic layout.

0:33:390:33:41

It's not ideal but, in these kinds of properties,

0:33:410:33:43

it's almost to be expected.

0:33:430:33:45

Um, as a starting point...

0:33:450:33:48

it's fine.

0:33:480:33:49

Upstairs there are two bedrooms,

0:33:580:34:00

one to the front

0:34:000:34:02

and one to the back.

0:34:020:34:04

But before you ask, nope,

0:34:040:34:06

there's definitely no room for a bathroom up here.

0:34:060:34:09

Time to look out the back to see if there's any surprises in store.

0:34:090:34:13

Well, this won't be a surprise to anyone living in a seaside town.

0:34:170:34:21

# Why do birds suddenly appear. #

0:34:210:34:27

GULLS CAW

0:34:270:34:28

Now, the good news for gulls and the bad news for house owners

0:34:280:34:32

is that once they've moved in, you can't evict them.

0:34:320:34:35

Gulls, like all wild birds, are protected

0:34:350:34:38

under the Wildlife And Countryside Act of 1981.

0:34:380:34:42

Removal of chicks, adults,

0:34:420:34:44

or their nests, is a criminal offence,

0:34:440:34:47

which could lead to a large fine or even prison.

0:34:470:34:50

They do tend to come back to nest in the same place,

0:34:500:34:52

so deterrents to nesting can be tried,

0:34:520:34:55

such as sonic devices or spikes and wires.

0:34:550:34:59

But culling, regarded as a last resort,

0:34:590:35:01

is only permitted with a special licence.

0:35:010:35:05

Well, at the rear of the property, a tiny little courtyard

0:35:050:35:07

leading onto this rear alleyway.

0:35:070:35:10

That's quite good. It's always good to have that kind of access.

0:35:100:35:13

But one thing which is slightly concerning is THAT. See that roof?

0:35:130:35:17

That sloping roof there?

0:35:170:35:19

Well, not only does it cover the kitchen of this property

0:35:190:35:22

but it also covers an extension of the next-door neighbour's.

0:35:220:35:26

If you get on with the next-door neighbours, that's fine.

0:35:260:35:29

Um, otherwise... it could be a bit of an issue.

0:35:290:35:32

Aside from the communal roof,

0:35:350:35:37

this is all pretty standard fare for this part of the world.

0:35:370:35:41

Let's see what an agent from the auction house who sold it

0:35:410:35:44

can tell us about this terraced house,

0:35:440:35:46

guided at £25,000 plus.

0:35:460:35:49

The positives of a property like this is that it's quite easily rentable.

0:35:490:35:53

There is a good demand locally for this kind of property.

0:35:530:35:56

Within walking distance of the town centre.

0:35:560:35:58

The train station, supermarket and the local football ground as well.

0:35:580:36:03

The negatives of the property... it does have a top end value.

0:36:030:36:07

Areas like this will always have that,

0:36:070:36:09

which is why people are tending to buy these up now

0:36:090:36:11

for the rental yield that they'll get from renting them out.

0:36:110:36:15

If it's been done to a very high standard,

0:36:150:36:17

the ceiling for this area is around £70,000.

0:36:170:36:21

Given local sales recently, we would confidently expect to achieve

0:36:210:36:25

a minimum of £65,000.

0:36:250:36:26

And what kind of rental figure could the new owner expect?

0:36:280:36:32

Rental is quite popular.

0:36:330:36:35

However, the ceiling for the rent is quite limited.

0:36:350:36:37

It could achieve quite easily £350 per calendar month.

0:36:370:36:41

To put it onto the rental market,

0:36:410:36:43

you don't really have to do that much to it.

0:36:430:36:45

You could leave the heating the way it is,

0:36:450:36:47

put a new kitchen and bathroom in,

0:36:470:36:49

and it could be rentable fairly quickly at a relatively low budget.

0:36:490:36:52

Well, a fairly simple one, this one.

0:36:530:36:55

Almost a starter project to cut your teeth as a property developer on.

0:36:550:37:00

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

0:37:000:37:03

Two-bedroom mid-terraced house.

0:37:040:37:08

Ideal investment.

0:37:080:37:09

25 is your guide.

0:37:090:37:11

Let's sell it in the room. 25, then.

0:37:110:37:14

At £25,000...

0:37:140:37:16

25 here.

0:37:160:37:17

At 25, 26, new bidder.

0:37:170:37:19

27, 28, 29, 30.

0:37:190:37:23

One... You're out. With you at 30.

0:37:230:37:26

At £30,000.

0:37:260:37:28

At £30,000, are we done?

0:37:280:37:30

31, 32,

0:37:300:37:32

33, 34, 35,

0:37:320:37:36

36, 37, 38 in the corner.

0:37:360:37:39

39, sir?

0:37:390:37:41

39 here? No. With you in...

0:37:420:37:45

On my right, at £38,000. With you, sir.

0:37:450:37:48

Against you and against you.

0:37:480:37:50

At £38,000... 39, you're back in.

0:37:500:37:54

40... One...

0:37:540:37:57

With you again on my right at £40,000.

0:37:570:38:00

First time at 40.

0:38:000:38:02

Second time at 40.

0:38:020:38:04

Are we done?

0:38:040:38:06

Half?

0:38:060:38:07

Half, 41, half?

0:38:070:38:10

Not sure? With you again, sir, at 41.

0:38:120:38:15

With me all the way, first time, 41,

0:38:150:38:18

second time, are we done?

0:38:180:38:20

Selling away then at £41,000...

0:38:200:38:22

GAVEL BANGS Well done, sir.

0:38:220:38:24

Can I have your paddle, please?

0:38:240:38:25

Lucky for some, 13.

0:38:250:38:27

That successful bid of £41,000 was made by Nigel,

0:38:270:38:32

who, along with wife Alison,

0:38:320:38:33

came along to meet me for a chat at their newly purchased house.

0:38:330:38:38

What plans await? I wonder...

0:38:380:38:40

# We're only making plans for Nigel. #

0:38:420:38:45

-Alison and Nigel, great to meet you both!

-Hello.

-Hello, there.

0:38:470:38:49

-Congratulations.

-Thank you.

-Thank you.

0:38:490:38:52

Tell me why you wanted by this little place.

0:38:520:38:54

-Well, Nigel was very ill a couple of years ago...

-Oh, no!

0:38:540:38:56

-..so he had to change his... He was a builder.

-Right.

0:38:560:38:58

-So he had to change his career.

-I was a builder for 40 years.

-Right.

0:38:580:39:02

-So I know the game. We've got a good team of lads doing jobs...

-Right.

0:39:020:39:07

-So, yeah, hopefully it'll be OK.

-So, is property investment new to you?

0:39:070:39:12

Is it something you've done a lot of?

0:39:120:39:14

-Er, fairly new to it.

-Yeah.

0:39:140:39:16

So, OK, tell me about this place.

0:39:160:39:18

What are you going to do to it to sort it out?

0:39:180:39:20

-Well... Ha-ha! The back door, we're going to close up.

-OK.

0:39:200:39:25

And extend the bathroom, make it bigger,

0:39:250:39:27

so we can get a bathroom shower into it.

0:39:270:39:30

-We're going to make this into the kitchen.

-OK.

0:39:300:39:32

-We'll move the kitchen into here.

-Oh, right!

0:39:320:39:34

Units round, so they can have a table in this area.

0:39:340:39:37

Make that a little utility room.

0:39:370:39:39

New central heating, new electrics, new skirting boards, where needed.

0:39:390:39:45

Skimmed out where needed. New bathroom, new kitchen.

0:39:450:39:50

-Decoration.

-Decoration.

-Decoration, yeah.

0:39:500:39:53

# Moving

0:39:560:39:57

# Moving. #

0:40:000:40:01

Nigel and Allison strike me as a pretty sensible couple

0:40:020:40:05

and seem to have everything worked out.

0:40:050:40:08

But there's that small matter of the communal roof at the back.

0:40:080:40:11

Are they going to make friends with their next-door neighbours?

0:40:110:40:15

-Basically, I own the property next door.

-Oh, right!

0:40:160:40:20

-I bought it at the auction before this one.

-OK.

0:40:200:40:23

And then this one came into sale about a week after, so I thought...

0:40:230:40:28

"Oh, I may as well buy this one as well!"

0:40:280:40:30

-And, if they're both together, they are easier looked after, so...

-Mm!

0:40:300:40:34

# I'll be moving next door to you, now, baby

0:40:340:40:39

# I'm moving next door to you-ooh. #

0:40:390:40:42

Well, that's them sorted

0:40:440:40:45

if they ever need to borrow a cup of sugar or even repair a roof.

0:40:450:40:49

So, what's the timescale?

0:40:490:40:51

-A couple of months, I'm hoping.

-Right.

-Get it turned round.

0:40:530:40:57

And then is the idea to rent it out or sell it on?

0:40:570:41:00

The idea is to rent both of the properties out.

0:41:000:41:02

Mm, rent it out, yeah.

0:41:020:41:04

-Do you know what rent you might get?

-Um...

0:41:040:41:08

We're looking for 390, something like that.

0:41:080:41:10

What's the budget going to be?

0:41:100:41:12

-About eight to ten.

-Yeah.

-OK.

0:41:120:41:16

Alison and Nigel are looking for more than the rental figure

0:41:160:41:19

the agent thought was the going rate.

0:41:190:41:22

However, that's because they're not taking the easy route

0:41:220:41:25

in doing the bare minimum.

0:41:250:41:26

And I'm glad to see that.

0:41:260:41:28

I like the idea of giving your tenant

0:41:280:41:30

the nicest property you can budget for.

0:41:300:41:32

And they'll still do OK, if they stick to their budget,

0:41:320:41:36

which will make a yield of 9%. Seems like pretty good return.

0:41:360:41:40

# Were only making plans for Nigel. #

0:41:400:41:45

And how much of the work do you two actually do?

0:41:450:41:47

-He does a lot more than me!

-THEY LAUGH

0:41:470:41:50

Yeah, I do quite a lot. I'm out... Well, I've been out every day.

0:41:500:41:53

And just...

0:41:530:41:55

I can do most things, as long as I don't have to lift heavy weights.

0:41:550:41:59

Um, we have a joiner, who does all the joiner work, obviously.

0:41:590:42:03

A plumber, heating engineer and electrician.

0:42:040:42:07

And then Simon, my friend, he helps me. He does the decorating.

0:42:070:42:11

-He's a decorator, so he helps on that.

-Right!

0:42:110:42:14

-Well, we're working together on the decoration.

-Oh, great.

0:42:140:42:17

And then after this one, plans for expanding the portfolio further?

0:42:170:42:21

-Yeah.

-Hopefully, yes.

-Hopefully.

0:42:210:42:23

If we can do four or five a year...

0:42:230:42:25

-Oh! But you're enjoying it, though?

-Yeah!

-Yes.

0:42:250:42:28

-I've really enjoyed it. Because I was off work for a year.

-Ah!

0:42:280:42:32

And I did nothing.

0:42:320:42:34

And I was so bored, it was unbelievable.

0:42:340:42:37

-So, yeah, this is great.

-Well, listen, congratulations!

0:42:370:42:40

-Thank you very much.

-Thank you very much.

-Good luck with it.

-Thank you.

0:42:400:42:44

-I look forward to seeing how you get on.

-Thank you.

-Thank you.

0:42:440:42:47

SEAGULL CRIES

0:42:480:42:50

Well, the seagulls certainly seem to like the property -

0:42:500:42:52

and so do Nigel and Alison.

0:42:520:42:54

The second one in this street - next-door, no less!

0:42:540:42:58

How will they get on with sorting THIS one out?

0:42:580:43:00

-You can find out later in the show.

-SEAGULL CRIES

0:43:000:43:03

Shut up!

0:43:030:43:05

Well, nobody says it's an easy job.

0:43:090:43:12

We've seen how the first developer got on. What about the other two?

0:43:120:43:15

Will they be happy or disappointed

0:43:150:43:18

when they hear those estate agents' evaluations?

0:43:180:43:21

Let's find out how they got on.

0:43:210:43:22

Back now to West Dulwich, South London,

0:43:240:43:26

with its excellent shops and amenities.

0:43:260:43:28

It also boasts ideal rail links.

0:43:280:43:31

The property I went to see was guided at 190,000 -

0:43:310:43:35

and looked perfect!

0:43:350:43:37

Then, it turned out to be a basement flat.

0:43:370:43:39

# I'm going down, down, down, down. #

0:43:390:43:44

But I was about to be very surprised.

0:43:440:43:47

This is almost like it's recently been renovated!

0:43:470:43:50

You've got a fabulous bathroom through there. I mean, look at that!

0:43:500:43:53

And the kitchen... I'm going to investigate!

0:43:530:43:57

It's really nice!

0:43:570:43:58

'But the pleasantries didn't last long because this beautiful flat

0:43:580:44:02

'was riddled with damp in every room.'

0:44:020:44:05

# Well, it's water, water everywhere

0:44:050:44:09

# And not a drop to drink So tell me now... #

0:44:090:44:13

I would employ a damp specialist straight away

0:44:130:44:15

to assess the cause of the problem.

0:44:150:44:17

It might not be too much to worry about.

0:44:170:44:19

BUT if it is, well, you might need to strip back the whole flat,

0:44:190:44:23

the flooring, say goodbye to that nice kitchen

0:44:230:44:26

and that lovely bathroom.

0:44:260:44:28

That could cost thousands and thousands and thousands of pounds.

0:44:280:44:32

'But it didn't dampen the enthusiasm of primary school teacher Julia,

0:44:340:44:37

'who paid 278,000 at auction and was delighted with her purchase.'

0:44:370:44:42

I was expecting it to be really run down, damp...

0:44:440:44:47

So, this one, I was just pleasantly surprised!

0:44:470:44:50

You said damp...

0:44:500:44:52

-Yeah, there's...

-There IS damp.

-There is damp, yeah.

0:44:520:44:55

-Do you know about the damp?

-Um...

-Or have you just found out about it?

0:44:550:44:59

Just this morning, I had a chat with the guy who sold me the flat.

0:44:590:45:04

We're going to sit down

0:45:040:45:06

and he's going to share what he knows about the damp issue.

0:45:060:45:09

How do you feel about that? And what you know about damp?

0:45:090:45:12

I'm just going to go out and find a damp specialist and hopefully

0:45:120:45:16

he can come and do his magic and fix the problem, I'm hoping!

0:45:160:45:21

'Julia only had £2,000 in her budget

0:45:210:45:24

'and needed to turn the flat around fast.

0:45:240:45:26

'So, when we returned one month later,

0:45:260:45:28

'there were some subtle changes to the outside.

0:45:280:45:31

'But what about the inside?

0:45:310:45:33

'You'd be thinking that nothing has changed

0:45:370:45:39

'but eagle-eyed viewers will notice a few vital improvements.'

0:45:390:45:43

# Take a closer look at Take a closer look at

0:45:430:45:48

# Take a closer look at

0:45:480:45:51

-# Take a closer look

-Yeah, yeah. #

0:45:510:45:53

It looks like Julia has fixed the damp and, when we last saw her,

0:45:530:45:58

she was meeting the former owner to find out about how bad the damp was.

0:45:580:46:02

So what did he tell her?

0:46:020:46:04

This flat has always had damp, ever since he had owned it.

0:46:040:46:09

When I've been talking to the builders, they explained,

0:46:090:46:11

if you've done a damp-proofing course

0:46:110:46:13

and you haven't done it properly, it will fail.

0:46:130:46:16

And the damp will come back and then some,

0:46:160:46:20

which is basically what's happened in this flat.

0:46:200:46:23

Yes, the damp was everywhere.

0:46:230:46:25

So, did she have to pull out that recently renovated kitchen

0:46:250:46:28

and bathroom to fix it?

0:46:280:46:31

A few of the builders said we're going to have to rip out the kitchen

0:46:310:46:34

and I had a heart attack because the kitchen is really lovely.

0:46:340:46:38

I didn't want to replace it.

0:46:380:46:39

But this team of builders said,

0:46:390:46:41

"We can do the treatment from the outside."

0:46:410:46:43

So, they drilled holes on the outside and did the treatment.

0:46:430:46:47

They poured the chemicals in and dealt with the damp from the outside,

0:46:470:46:51

rather than the inside.

0:46:510:46:52

And that saves me having to replace the kitchen and replace the bathroom!

0:46:520:46:57

Phew! That will have saved Julia a fortune.

0:46:580:47:01

But other rooms required much more work.

0:47:010:47:04

This wall was really bad.

0:47:040:47:06

Apparently, they had to take seven layers of plaster off

0:47:060:47:09

to get to the brick. Then they did the treatment,

0:47:090:47:12

which is the chemicals.

0:47:120:47:14

And then they had to keep coming

0:47:140:47:16

and, a bit like spreading butter on bread,

0:47:160:47:19

they had to do layer after layer after layer.

0:47:190:47:23

Afterwards, it needed to be skimmed.

0:47:230:47:25

Finally, he repainted the whole of the living room, the ceilings,

0:47:250:47:30

after the plaster had tried out, which took about four days.

0:47:300:47:34

Replaced the skirting boards, repainted them...

0:47:340:47:37

I'm really pleased with the result. I think it looks really good.

0:47:370:47:41

The whole renovation cost 6,000 and took a month to complete.

0:47:410:47:45

And that put Julia £4,000 OVER her original budget.

0:47:450:47:49

But she said that if she went over budget, she'd need take out a loan.

0:47:500:47:54

So, how did she cover the extra cost?

0:47:540:47:56

I just used the last of my savings. I'm literally on the last bits now.

0:47:590:48:05

That's cleaned me out now. Yeah, I'm absolutely broke!

0:48:050:48:08

Well, you might not be broke for very long, Julia.

0:48:100:48:13

Two local estate agents can tell us their impressions of this property.

0:48:130:48:17

And most importantly, its value.

0:48:170:48:19

When I first came in, at first glance,

0:48:210:48:23

you wouldn't realise a lot had been done.

0:48:230:48:25

But actually, being here before and seeing the extent of the damp

0:48:250:48:28

and now it's gone completely, we understand the work has been done

0:48:280:48:31

to a high standard and obviously it's been redecorated throughout as well.

0:48:310:48:34

So it's looking great.

0:48:340:48:36

My first impressions are it's nice and bright,

0:48:360:48:38

considering this is a lower ground floor.

0:48:380:48:40

And it's been refurbished to a high standard.

0:48:400:48:43

So, bought at auction for 278,000

0:48:430:48:46

and having renovated at a cost of six grand,

0:48:460:48:49

Julia's total spend is £284,000.

0:48:490:48:54

I think, in this market,

0:48:550:48:58

this property could achieve somewhere between £325,000-£350,000.

0:48:580:49:03

If this property came to the market today,

0:49:030:49:05

I would estimate its value between £325,000 and £350,000.

0:49:050:49:10

A top valuation of 350,000

0:49:110:49:13

would give Julia a pre-tax profit of £66,000.

0:49:130:49:18

Is she pleased with those valuations?

0:49:180:49:21

Yeah, they're really good! I'm really pleased with that.

0:49:210:49:23

That's a good result. It means I've got what I paid for it

0:49:230:49:27

and a little something.

0:49:270:49:29

So, yeah, I'm really happy. Really pleased!

0:49:290:49:32

Those numbers are a great start but Julia always wanted to rent

0:49:320:49:35

and is pitching the flat at around £1,200 per calendar month.

0:49:350:49:40

Now, is that the right market value?

0:49:400:49:42

From a rental perspective, I think

0:49:420:49:44

this property could achieve around about £1,200 per calendar month.

0:49:440:49:49

For the rental market today, I would estimate this property

0:49:490:49:51

achieving between £1,150 per calendar month to £1,250 per calendar month.

0:49:510:49:57

An average value of £1,200 per calendar month

0:49:580:50:01

would give Julia a 5% yield.

0:50:010:50:03

We did a little bit of research

0:50:050:50:07

and that's the figure that I thought we would get for it,

0:50:070:50:10

so I'm pleased for that.

0:50:100:50:12

# I was making it easy for the clean-up woman. #

0:50:120:50:17

Julia is putting a few final touches to the property.

0:50:180:50:21

And I'll bet she'll be glad to mop up a decent return

0:50:210:50:24

on her investment.

0:50:240:50:25

But would she take on a property with this kind of problem again?

0:50:250:50:29

I so would take a flat that's got damp.

0:50:310:50:34

I think if you bring in some experts that know what they're doing,

0:50:340:50:37

then they can take care of the problem and, you know, job gets done.

0:50:370:50:41

We're heading back to Workington in Cumbria now,

0:50:440:50:47

a town that isn't monkeying around

0:50:470:50:49

when it comes to major redevelopment.

0:50:490:50:51

But while the town is undergoing changes, some things never change.

0:50:510:50:55

Like the layout of this two-bed mid-terrace, guided at £25,000 plus.

0:50:550:51:01

You've seen these two-up two-downs so many times before on this show,

0:51:010:51:05

I'm sure you could draw a map of the layout!

0:51:050:51:08

What do you think's next? What do you think? Go on, guess.

0:51:100:51:13

Yep. Kitchen! You've seen properties like this a million times before

0:51:130:51:17

on Homes Under The Hammer. It's a classic design.

0:51:170:51:20

But is that because, in general, it works quite well?

0:51:200:51:23

And, of course, bathroom at the back, etc, etc.

0:51:230:51:26

But out in the lane, behind the house, there was an unusual problem.

0:51:260:51:30

See that roof? That sloping roof there?

0:51:320:51:34

Well, not only does it cover the kitchen of this property

0:51:340:51:37

but it also covers an extension of the next-door neighbour's.

0:51:370:51:40

Well, if you get on with the next-door neighbours, that's fine.

0:51:400:51:44

Um, otherwise... it could be a bit of an issue.

0:51:440:51:48

Shared roofs didn't put off Nigel and Alison,

0:51:480:51:51

who bought the house for £41,000.

0:51:510:51:53

And it turns out they had a solution to that roof problem.

0:51:530:51:57

-I own the property next door.

-Oh, right!

0:51:580:52:00

-I bought it at the auction before this one.

-OK!

0:52:000:52:03

And then this one came in to sell about a week after, so I thought...

0:52:030:52:08

"Oh, I may as well buy this one as well!"

0:52:080:52:11

'Nigel certainly had the experience to deal with two properties.'

0:52:110:52:15

-I was a builder for 40 years.

-Right.

-So, I know the game.

0:52:160:52:20

-We've got a good team of lads doing jobs and...

-Right.

0:52:200:52:23

Yeah, hopefully it'll be OK.

0:52:230:52:26

Nearly five months later, when we returned, well, the house

0:52:270:52:30

certainly looked as if things were happening on the outside.

0:52:300:52:33

But what about changes inside?

0:52:330:52:36

Alison and Nigel have clearly made a lot of changes.

0:53:000:53:03

Let's find out what's been going on.

0:53:030:53:06

It's taken us about four months.

0:53:070:53:09

We started about a fortnight after you were here last time.

0:53:090:53:13

We changed all the doors

0:53:130:53:15

and we changed all the skirting boards upstairs.

0:53:150:53:18

And it's completely decorated in new carpet.

0:53:180:53:21

And then downstairs, new skirting boards, new doors,

0:53:210:53:25

new kitchen, new bathroom, new living room and floors.

0:53:250:53:30

Floor coverings right through.

0:53:300:53:32

'Thanks, Alison. But not the changes I was thinking of.

0:53:320:53:35

'The major change is the kitchen moving.'

0:53:350:53:38

# Moving furniture around. #

0:53:380:53:44

Here in the kitchen,

0:53:470:53:48

the original fireplace had already been taken out.

0:53:480:53:52

So it allowed us a nice open space.

0:53:520:53:55

So we decided to move the kitchen out of the galley kitchen

0:53:550:53:58

and make a nice kitchen in here. All new units.

0:53:580:54:02

We put board on here, which gives a nice finish.

0:54:020:54:05

And we're very, very pleased with this result.

0:54:050:54:08

'And what was the galley kitchen is now a bathroom. I don't believe it!

0:54:080:54:12

'Have Nigel and Alison found a way to change the layout

0:54:120:54:15

'of this most predictable property in a way we've not seen before?'

0:54:150:54:19

Right, so in the bathroom, what we did, we took the wall out,

0:54:230:54:26

which made the bathroom a lot bigger

0:54:260:54:28

and enabled us to put the big bath in and move it that way,

0:54:280:54:32

so we could have a shower and it didn't splash on the window.

0:54:320:54:37

New sink, new toilet and multi panel on the wall, rather than tiles.

0:54:370:54:43

Erm, I think the multi panel is better than tiles

0:54:430:54:47

when you're going to rent.

0:54:470:54:49

You don't have the problems with grout and things like that.

0:54:490:54:51

So it's made quite a nice bathroom.

0:54:510:54:54

'And the new back door area is a good solution,

0:54:540:54:57

'sitting between the new kitchen and bathroom.

0:54:570:55:00

'But with these major changes and the renovation upstairs,

0:55:000:55:03

'have they gone over their budget?'

0:55:030:55:05

I think originally we said about eight

0:55:070:55:10

but we went over that by a little bit.

0:55:100:55:12

I think it's come out at about 12 now.

0:55:140:55:16

We felt it was worth spending a bit more money

0:55:160:55:19

to put a nice kitchen in and a nice bathroom in

0:55:190:55:21

-and alter the kitchen to put it in here.

-Yeah.

0:55:210:55:23

Because it makes a better finished job.

0:55:230:55:26

'And all the work took four months. I agree with Alison -

0:55:260:55:30

'the extra budget has created a good quality finish.

0:55:300:55:33

'Let's hope that two local estate agents agree.'

0:55:330:55:36

Clearly, as you can see from what it was previously like,

0:55:380:55:41

they've made quite a lot of improvements. Moving the kitchen,

0:55:410:55:44

creating a dining kitchen, which has created better space.

0:55:440:55:48

And they have the property now ready to either sell on or rent out.

0:55:480:55:52

I think the size of the kitchen now

0:55:520:55:54

is the main thing for me in this house.

0:55:540:55:57

The ability to dine with a proper table,

0:55:570:55:59

within a two-bedroom, mid-terraced house,

0:55:590:56:02

I think is a good advantage over others.

0:56:020:56:04

'Bought for £41,000 and with a renovation spend of 12,000,

0:56:040:56:08

'Alison and Nigel's total cost is £53,000. So, what about rentals?

0:56:080:56:14

'And we're in luck because one estate agent

0:56:140:56:17

'knows this area particularly well.'

0:56:170:56:19

Well, I'm fortunate that we've actually rented

0:56:200:56:23

the property next door to this very recently,

0:56:230:56:25

which was in good condition, like this is.

0:56:250:56:28

And we've achieved £400 per calendar month for that property.

0:56:280:56:31

I'd anticipate that we'd get the same for this.

0:56:310:56:33

We'd expect to get in the region of £300 per calendar month.

0:56:330:56:37

Low.

0:56:370:56:38

Very low. No, we get a lot more than that for next door.

0:56:380:56:42

'Well, Alison isn't having any of that.

0:56:420:56:45

'The second agent felt that £300 per calendar month

0:56:450:56:48

'could stretch to £325 but it is a whopping difference.

0:56:480:56:54

'Well, that's why we always ask for two professional opinions.

0:56:540:56:57

'It's not a perfect science.

0:56:570:56:59

'Those valuations would give a 9% or 6% yield respectively.

0:56:590:57:04

'So, what about the resale value? Would that cheer them up?'

0:57:040:57:07

We would anticipate achieving £65,000 for this house,

0:57:090:57:13

perhaps to ask very slightly higher.

0:57:130:57:16

We would expect to market the property in the region

0:57:160:57:19

of 64,950, with a view to achieving somewhere in excess of 60,000.

0:57:190:57:25

That top value of 65,000 would give Alison and Nigel

0:57:250:57:29

a £12,000 profit before the usual taxes and expenses.

0:57:290:57:33

-It's quite good then, isn't it?

-Yeah, it's not bad.

0:57:360:57:39

-Yeah, it's all right. It's not for sale but...

-Quite happy with that.

0:57:390:57:42

-Yeah.

-It's worth knowing that it's worth more than when we started.

0:57:420:57:46

So the couple keep marching on in the property game,

0:57:460:57:49

transforming mid-terraces into marvellous manors.

0:57:490:57:52

And I think it's down to their partnership.

0:57:530:57:55

Do they work well together?

0:57:550:57:58

-Er...

-Yeah!

-We work well on camera, I think!

-No!

0:58:010:58:05

But we DO work well together, don't we? We do!

0:58:050:58:07

I'm not sure about anywhere else...

0:58:070:58:09

Well, that's how today's property stories unfolded

0:58:140:58:17

but we'll have plenty more for you next time.

0:58:170:58:19

Yes, so join us for more auction action and development stories

0:58:190:58:23

-from Homes Under The Hammer.

-We'll see you then.

-Goodbye.

0:58:230:58:26

Goodbye.

0:58:260:58:27

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