0:00:02 > 0:00:05Hello. We are a nation of property lovers and we love to invest
0:00:05 > 0:00:08in bricks and mortar to live in, to rent out or to sell on,
0:00:08 > 0:00:10hopefully at a profit.
0:00:10 > 0:00:14Yes, but with such a wide range of properties available, how do you
0:00:14 > 0:00:16go about getting yourself a bargain?
0:00:16 > 0:00:20Well, one way you can do that is by going to the auctions.
0:00:46 > 0:00:48Buying at auction can be straightforward.
0:00:48 > 0:00:51You could be the legal owner within weeks
0:00:51 > 0:00:53but it's really important to do your homework.
0:00:53 > 0:00:57Yes, let's have a look at what today's bidders decided to buy at auction.
0:00:58 > 0:01:02On today's show, this developer in Wales is ready to get stuck in.
0:01:02 > 0:01:06- So how do you feel about this venture then?- Bring it on!
0:01:08 > 0:01:12Are this couple in Kent stuck with their lodger?
0:01:12 > 0:01:15He came to dog-sit for us a year ago and still got him.
0:01:15 > 0:01:18- He's living at home with you guys? - Yes.
0:01:18 > 0:01:21And could budgets be a sticky issue for this couple in Stoke?
0:01:21 > 0:01:24- What are you factoring in that hubby isn't?- Nothing.
0:01:24 > 0:01:28Exactly the same, but I'm just giving a little bit more leeway for each.
0:01:29 > 0:01:32All of these properties have been sold at auction.
0:01:32 > 0:01:35We will find out who bought them and what they paid for them
0:01:35 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:37Your lot, madam.
0:01:45 > 0:01:49This picturesque little village is Cymmer, 10 miles outside
0:01:49 > 0:01:52Port Talbot, in West Glamorgan, Wales.
0:01:52 > 0:01:56Well, this used to be a heavily industrialised mining area
0:01:56 > 0:01:58but since the mines closed, the hills
0:01:58 > 0:02:01and valleys have returned to their natural splendour.
0:02:01 > 0:02:04The locals call this Little Switzerland.
0:02:04 > 0:02:08Let's hope the hills are alive with the sound of the auction hammer.
0:02:10 > 0:02:11Oh, and before you write in,
0:02:11 > 0:02:14I do know The Sound Of Music was based in Austria.
0:02:14 > 0:02:18Well, whether you think it looks like Switzerland, Austria or just
0:02:18 > 0:02:21good old Wales, this beautiful scenery is certainly proving
0:02:21 > 0:02:23a hit with tourists.
0:02:23 > 0:02:27Its hills and valleys attracting cyclists and mountain bikers
0:02:27 > 0:02:28from all over Europe.
0:02:30 > 0:02:34Well, I am here to see a property not up in the hills, but on this
0:02:34 > 0:02:37ex-local authority housing estate.
0:02:37 > 0:02:40Three bedrooms semidetached, built in the 1950s.
0:02:40 > 0:02:43Guide price, £30,000. Yes, you heard me right.
0:02:43 > 0:02:46Looks pretty good from the outside. In we go.
0:02:51 > 0:02:54Ooh, lovely open entrance area.
0:02:54 > 0:02:57Gives a really nice feel the moment you walk through the door.
0:02:57 > 0:03:00Stairs up to the bedrooms and bathroom there.
0:03:00 > 0:03:03This area here leading through to the kitchen and then
0:03:03 > 0:03:08sidle this way to a really nice-sized lounge.
0:03:08 > 0:03:11It's dual aspect so you have got lovely views out of the hills
0:03:11 > 0:03:14that way, although you can't quite see them today cos it's a bit misty.
0:03:14 > 0:03:15Nice garden towards the back.
0:03:15 > 0:03:21Yeah, a very, very liveable space. Ready for the guide price.
0:03:21 > 0:03:23It's ticking all the boxes.
0:03:32 > 0:03:36So far, this is looking like an ideal candidate for development.
0:03:36 > 0:03:37OK, so the decor is dated
0:03:37 > 0:03:41and the kitchen would need replacing but with the space here and that
0:03:41 > 0:03:46low guide price, there really is a great opportunity here to add value.
0:03:46 > 0:03:50And with the large front garden, you may even be able to add
0:03:50 > 0:03:53off-street parking - bonus!
0:03:54 > 0:03:58So upstairs and three bedrooms, a separate bathroom and loo.
0:03:58 > 0:04:00The age-old question, do you knock them into one?
0:04:00 > 0:04:03Well, if you don't, you keep them like that. One thing you might
0:04:03 > 0:04:08want to consider is putting a small hand basin in the loo itself.
0:04:08 > 0:04:11Um, one thing you do notice when you are up here though
0:04:11 > 0:04:15is these roof polystyrene tiles. Yuk, yuk, yuk!
0:04:15 > 0:04:18They are a fire hazard, they are dreadful, horrible things.
0:04:18 > 0:04:21Just get rid of them. The only issue is when you do that,
0:04:21 > 0:04:27you might end up with something like that. As you can see, a lot of damp.
0:04:27 > 0:04:32That said, at least by taking them off, you have actually revealed it
0:04:32 > 0:04:35and so you can see there is a problem. That's really nasty
0:04:35 > 0:04:39and my guess is, it is leaking pipe work up in the attic.
0:04:39 > 0:04:42So that definitely needs to be sorted out.
0:04:42 > 0:04:44But all in all, lots of space.
0:04:44 > 0:04:47It just continues to be a very liveable house.
0:04:49 > 0:04:53Now, don't get me wrong, those tiles and the damp are serious problems
0:04:53 > 0:04:55but, equally, they can be fixed.
0:04:56 > 0:04:59The crucial thing is these are good-sized, solid rooms
0:04:59 > 0:05:03and let's not forget there is a cracking garden out the back.
0:05:04 > 0:05:07With a bit of work, this could make a great family home.
0:05:10 > 0:05:14So it's all pretty tickety-boo, but there is a but.
0:05:14 > 0:05:19Um, well, it's a sort of possible but. You'll know what I mean in a second.
0:05:19 > 0:05:23A lot of the houses of this age in certain areas were built of what
0:05:23 > 0:05:26they call non-standard construction - concrete blocks
0:05:26 > 0:05:30which over time have issues, which makes properties unmortgageable.
0:05:30 > 0:05:33And there is various things you can look out for other than
0:05:33 > 0:05:36the general thing of where they are and the kind of houses
0:05:36 > 0:05:37that are all around.
0:05:37 > 0:05:42Things like this - surface-mounted pipes and cables. Why?
0:05:42 > 0:05:44Well, if it's concrete, it's really
0:05:44 > 0:05:48difficult to actually get these things buried into them so that is
0:05:48 > 0:05:50something you can look out for.
0:05:50 > 0:05:53Look at the thickness of this reveal here.
0:05:53 > 0:05:54HOLLOW KNOCKING
0:05:54 > 0:05:56Can you hear that?
0:05:56 > 0:05:58It's kind of hollow.
0:05:58 > 0:06:03That's because it could be that this was a non-standard construction house
0:06:03 > 0:06:05which has since been rectified by
0:06:05 > 0:06:08having this skim of bricks on the outside.
0:06:08 > 0:06:12In fact, given that it has had that, this whole bit of chatter
0:06:12 > 0:06:14is irrelevant because it has been sorted out.
0:06:14 > 0:06:17But it is good to know because if it was non-standard construction
0:06:17 > 0:06:20which hadn't been sorted, you wouldn't be able to get a mortgage.
0:06:20 > 0:06:22But it has been sorted, so you can get a mortgage.
0:06:22 > 0:06:24Was there any point in all that?
0:06:24 > 0:06:26Well, you know, you know a bit more than you did.
0:06:33 > 0:06:37And now you know this, learn to do your research as well.
0:06:37 > 0:06:41Even with a brick skin, some lenders might still refuse a mortgage
0:06:41 > 0:06:44for non-standard construction, especially if you have
0:06:44 > 0:06:47the brick skin but your neighbours don't.
0:06:47 > 0:06:49Does a local estate agent agree?
0:06:51 > 0:06:55It looks as if it's non-traditional construction,
0:06:55 > 0:06:59prefab construction that has had the red bricks on the outside.
0:06:59 > 0:07:02It can be more difficult to get a mortgage on this kind of
0:07:02 > 0:07:06construction, so is a guide price of £30,000 for this three-bed
0:07:06 > 0:07:10semidetached house still sounding like a good deal?
0:07:10 > 0:07:13Should the property be placed on the market, then I would recommend
0:07:13 > 0:07:17an asking price of £64,950.
0:07:17 > 0:07:20Once this property has been refurbished, then I would recommend
0:07:20 > 0:07:24that we ask for £400 per calendar month.
0:07:24 > 0:07:28Well, it's a lovely location and a lot of house for the money.
0:07:28 > 0:07:32Let's see who is tempted by it when it went under the hammer.
0:07:32 > 0:07:33Lot 56.
0:07:33 > 0:07:36A three-bedroom semidetached house guided at 30,000.
0:07:36 > 0:07:38Start me up 30,000, somebody.
0:07:38 > 0:07:40Or 25. 25 just to get started.
0:07:40 > 0:07:42Thank you, 25. 26,
0:07:42 > 0:07:4526, madam. 26. 27, 28, 29.
0:07:45 > 0:07:4829 there, 30. 30, 31. 31 now.
0:07:48 > 0:07:5230,000, I am with you. At 30,000, one or half, if you like.
0:07:52 > 0:07:55At 30,000, I am with you for the first time.
0:07:55 > 0:07:58At £30,000. 31, 32.
0:07:58 > 0:08:0233, 33 now. 32.5 an option.
0:08:02 > 0:08:05At 32,000 and back where we were a short while ago.
0:08:05 > 0:08:11At 32,000 for the first time, second time, third and last time. £32,000.
0:08:11 > 0:08:13Well done, madam, sir.
0:08:14 > 0:08:17I like a bit of excitement and a few smiles.
0:08:24 > 0:08:26Yes, we all like a bit of excitement.
0:08:26 > 0:08:30And Lynn, who got the property for £32,000, certainly was.
0:08:30 > 0:08:33Lynn and her friend Colin came along to tell me
0:08:33 > 0:08:36about their first auction purchase.
0:08:36 > 0:08:39- Lynn, Colin, great to meet you both.- Nice to meet you too.
0:08:39 > 0:08:42- Lovely to meet you, Martin. - Congratulations.- Thank you.
0:08:42 > 0:08:45Tell me why you wanted buy this place.
0:08:45 > 0:08:49Well, we are both retired and really we wanted something to work on
0:08:49 > 0:08:54- together and this is the first one I have bought.- Right.
0:08:54 > 0:08:57We are looking forward to the project, really.
0:08:57 > 0:09:00Right, retired from what? What were your previous careers?
0:09:00 > 0:09:06- I was in the aircraft industry for 47 years. Retired 1.5 years ago.- Wow.
0:09:06 > 0:09:09- And I was a primary school teacher for 34 years.- Wow!
0:09:09 > 0:09:12And during the last year, I did have an injury to my back and neck
0:09:12 > 0:09:16and while I was off, I watched Homes Under The Hammer, which inspired me
0:09:16 > 0:09:19- and thought, "I can have a go at it."- Right, so we have some way
0:09:19 > 0:09:23- guided you to where you are now. - Definitely, yeah.- Brilliant.
0:09:23 > 0:09:26And why this property then?
0:09:26 > 0:09:31Well, we saw many before the auction in the normal way of buying them
0:09:31 > 0:09:34and everything had a problem.
0:09:34 > 0:09:39And, you know, from fleas to fleas to all sorts and this one didn't
0:09:39 > 0:09:42- have it so we thought we'd go and bid for it.- No fleas?
0:09:42 > 0:09:43BOTH: No fleas.
0:09:43 > 0:09:46- That's a big tick in the box.- It was. Definitely.- 'Tick' in the box!
0:09:46 > 0:09:50- Doesn't matter. - SHE LAUGHS
0:09:50 > 0:09:53Bad, even by my standards. So how was the auction?
0:09:53 > 0:09:55Oh, very exciting.
0:09:55 > 0:09:57I really enjoyed it!
0:09:57 > 0:10:02I did the bidding for Colin and he told me in the car going down
0:10:02 > 0:10:07- that we could bid up to 40 and we got it for 32.- Wow.- Well done.
0:10:07 > 0:10:10- I mean, it's a lot of house for the money, isn't it?- It is, yeah.
0:10:10 > 0:10:11We are really pleased with it.
0:10:11 > 0:10:14Lynn and Colin sound pretty pleased.
0:10:14 > 0:10:16They found a flea-free property
0:10:16 > 0:10:20but there might be a fly in the ointment, so to speak,
0:10:20 > 0:10:22with regards to that non-standard construction issue.
0:10:22 > 0:10:24Where they aware of that?
0:10:24 > 0:10:26Well, we weren't aware of it.
0:10:26 > 0:10:27There was nothing in the legal pack
0:10:27 > 0:10:30and it has previously been mortgaged.
0:10:30 > 0:10:33That's a good indicator.
0:10:33 > 0:10:37If it was in the past anyway, it looks like it's had the brick
0:10:37 > 0:10:39skimming so I think all issues would
0:10:39 > 0:10:42- be resolved with that, wouldn't they?- Yes.- Yes, hopefully.
0:10:42 > 0:10:46Only a survey could give a definite answer on the state of the construction
0:10:46 > 0:10:49but it certainly seems there isn't an issue.
0:10:49 > 0:10:52Colin set them up as a company so that they could undertake projects
0:10:52 > 0:10:55together and I'm so pleased they were inspired
0:10:55 > 0:10:56by Homes Under The Hammer
0:10:56 > 0:11:00and also that they were inspired to read the legal pack.
0:11:00 > 0:11:03You have to go to the top of the class, Lynn.
0:11:03 > 0:11:05So, what are the plans?
0:11:05 > 0:11:07I think we are going to strip all the wallpaper off,
0:11:07 > 0:11:12all the polystyrene tiles off the ceilings. Skirting boards off.
0:11:13 > 0:11:17We are going to replace the bathroom, the kitchen.
0:11:18 > 0:11:22Laminate floor through out on the ground floor, carpets upstairs.
0:11:22 > 0:11:26- Obviously repaint, re-skim the walls if necessary.- Right.
0:11:26 > 0:11:29And hopefully, it should look very nice when it is finished.
0:11:29 > 0:11:33- And how much work are you going to do yourselves?- None.- Very little.
0:11:33 > 0:11:37Project management, which Lynn is going to help with,
0:11:37 > 0:11:40and sourcing materials and things like that.
0:11:40 > 0:11:44We have got some builders lined up to do the work starting tomorrow.
0:11:44 > 0:11:48- Oh, gosh.- And we are looking forward to letting them get on with it.
0:11:48 > 0:11:51- Are they builders that you have used before?- I got them off
0:11:51 > 0:11:54a website, but I have taken up references and seen some
0:11:54 > 0:11:56of the work that they have done, so fingers crossed.
0:11:56 > 0:12:02Lynn has done all the right research here and she has got a quote for £15,000.
0:12:02 > 0:12:04Now, remember there is a big difference
0:12:04 > 0:12:06between a quote and an estimate.
0:12:06 > 0:12:07A quote or a fixed estimate is a
0:12:07 > 0:12:11promise to do work at an agreed price with all the details
0:12:11 > 0:12:14of what work is included.
0:12:14 > 0:12:17However, an estimate is just a guesstimate.
0:12:17 > 0:12:20Colin will be looking after the finances and the paperwork
0:12:20 > 0:12:22while Lynn will be sourcing materials.
0:12:24 > 0:12:27Part of my role is to choose the kitchen and bathroom
0:12:27 > 0:12:32- and get the cheapest prices.- Right. - This will all be done very relaxed.
0:12:32 > 0:12:36A nice cup of coffee and a brochure so I've really enjoyed it.
0:12:36 > 0:12:39Coffee and brochures?! I think I like the sound of that job, Lynn.
0:12:39 > 0:12:41MARTIN CHUCKLES
0:12:41 > 0:12:44Is this an idea that this is an income generator or is it
0:12:44 > 0:12:46something to supplement your pensions or what?
0:12:46 > 0:12:51We are really intending to sell it once we have renovated.
0:12:51 > 0:12:55Depending on how quickly it sells or doesn't sell, obviously we would
0:12:55 > 0:12:57consider renting as well.
0:12:57 > 0:13:00- So what is the timescale?- Six weeks. - Six weeks.- Oh, wow.
0:13:00 > 0:13:05How do you feel about this venture then? This move from previous lives
0:13:05 > 0:13:07- to where you are now?- Bring it on!
0:13:07 > 0:13:12Ooh-hoo! I'm really excited. Yes, very excited.
0:13:12 > 0:13:15Listen, congratulations. Good luck with it. Lovely to meet you both.
0:13:15 > 0:13:18- Thank you very much.- Thank you very much.
0:13:18 > 0:13:21Well, it's lovely to hear that Lynn and Colin were inspired by
0:13:21 > 0:13:24Homes Under The Hammer, quite right too.
0:13:24 > 0:13:25And they followed our advice.
0:13:25 > 0:13:28They saw the property, they bought at a good price and they
0:13:28 > 0:13:32have got a budget sorted out and the builder they have checked out too.
0:13:32 > 0:13:36How will they get on with their first renovation and property
0:13:36 > 0:13:39development project? You can find out later in the show.
0:13:44 > 0:13:47The Isle of Sheppey lies off the north coast of Kent
0:13:47 > 0:13:50and I'm in a coastal village on the east side.
0:13:52 > 0:13:57Leysdown-on-Sea is very much a traditional small seaside resort.
0:13:57 > 0:14:01You have got lovely beaches and lots of family-orientated amusement arcades.
0:14:01 > 0:14:05And even on a day like today, I do like to be beside the seaside.
0:14:05 > 0:14:06Honest!
0:14:19 > 0:14:21Well, it wouldn't be the British seaside
0:14:21 > 0:14:24if it wasn't chucking it down, now, would it?
0:14:24 > 0:14:26It may be the off-season just now
0:14:26 > 0:14:30but in the summer sunshine, Leysdown-on-Sea is still a popular
0:14:30 > 0:14:33destination for British holiday-makers.
0:14:33 > 0:14:36The property I am here to see today is quite unusual.
0:14:36 > 0:14:40Now, it's a purpose-built, two-bed maisonette and it was originally
0:14:40 > 0:14:42designed for use as a holiday home.
0:14:42 > 0:14:45And, ta-da! This is it.
0:14:45 > 0:14:47Let's be honest,
0:14:47 > 0:14:50it's no cutsey-wootsy little seaside cottage, that's for sure.
0:14:50 > 0:14:51But what it lacks in looks, well,
0:14:51 > 0:14:54it certainly makes up for in location.
0:14:54 > 0:14:59It really is just steps away from the sea and the beach. It is there.
0:14:59 > 0:15:01Let's go inside and have a little look around.
0:15:01 > 0:15:05'And this had a guide price of 25 to 30 grand.'
0:15:05 > 0:15:09Oh, why do I always end up filming right next to the beach
0:15:09 > 0:15:11on a rainy day? It's just not fair.
0:15:11 > 0:15:15So here we are, we've got a nice big space here.
0:15:15 > 0:15:17Kitchen at the back of the property.
0:15:17 > 0:15:20That will need to be completely refurbished, may be painted
0:15:20 > 0:15:21or even changed.
0:15:21 > 0:15:24Now, I know there's no gas central heating in here, you have
0:15:24 > 0:15:25currently got these heaters.
0:15:25 > 0:15:29That's probably because there is no gas anywhere around here.
0:15:29 > 0:15:33You have got new windows, they have been installed so that's a bonus.
0:15:33 > 0:15:37At the front of the property, we have got two not bad-sized bedrooms
0:15:37 > 0:15:41and I'm guessing actually that the kitchen might have been in one
0:15:41 > 0:15:43of these bedrooms because there are the same tiles on the wall.
0:15:43 > 0:15:46You've got another good-sized double at the back here
0:15:46 > 0:15:49and a shower room with a stand-up shower cubicle.
0:15:49 > 0:15:53I think you could potentially...eerr..squeeze
0:15:53 > 0:15:57a bath in there with an overhead shower. I think that might work better.
0:15:57 > 0:16:02You have got some wiring externally here, you have got strip lighting up there.
0:16:02 > 0:16:05So there are lots of things you can do to tweak this little property
0:16:05 > 0:16:07to try and get the most out of it.
0:16:07 > 0:16:11And I think, for about five grand, you could do a great job here.
0:16:11 > 0:16:14And don't forget, there's the beach, it's the seaside!
0:16:15 > 0:16:17The amount of work here isn't scary.
0:16:17 > 0:16:21Apart from some dodgy-looking electrics, it looks mostly cosmetic.
0:16:21 > 0:16:25And there is that very attractive guide price of 25 to 30 grand.
0:16:25 > 0:16:28You know, I think this could tempt me to be beside the seaside.
0:16:38 > 0:16:40This is a leasehold property,
0:16:40 > 0:16:43which means someone else owns the freehold.
0:16:43 > 0:16:47Now, one issue with this maisonette is the lease.
0:16:47 > 0:16:49Now, there is a restrictive clause.
0:16:49 > 0:16:53You are only allowed to occupy this property for 50 weeks of the year.
0:16:53 > 0:16:55Not 52, just 50.
0:16:55 > 0:16:59And that's because these properties were originally meant to be used
0:16:59 > 0:17:01exclusively for holiday use.
0:17:01 > 0:17:05Now, that limitation has now been lifted but you are left
0:17:05 > 0:17:08with having to leave here for two weeks every year.
0:17:08 > 0:17:12A bit inconvenient, but not that much of a big deal.
0:17:20 > 0:17:24As long as you don't mind finding a hideaway or going on holiday for
0:17:24 > 0:17:27two weeks, which is hardly a hardship,
0:17:27 > 0:17:28then that's not so bad, is it?
0:17:28 > 0:17:31But there is another thing to consider with a leasehold property -
0:17:31 > 0:17:34you are not in control of the maintenance of the building
0:17:34 > 0:17:37or the surrounding grounds, the freeholder is.
0:17:37 > 0:17:40It would be a good idea to see if there are plans to do any work,
0:17:40 > 0:17:42have a word with the neighbours and
0:17:42 > 0:17:44find out if there is a big maintenance bill coming up
0:17:44 > 0:17:49that will need to be split between all the leaseholders.
0:17:49 > 0:17:52A bigger problem is that the lease on this property is now quite short
0:17:52 > 0:17:57and there is only about 62 years left, which means mortgage companies
0:17:57 > 0:18:01are not going to be keen on lending on a property like this.
0:18:01 > 0:18:05You are going to have to put money aside to pay for a lease extension as well.
0:18:05 > 0:18:09So generally speaking, the shorter the lease, the more expensive
0:18:09 > 0:18:13it gets to extend it. That is worth bearing in mind.
0:18:14 > 0:18:18So there are some legal and lease issues that could cause choppy waters.
0:18:18 > 0:18:22But no-one ever said developing property was plain sailing.
0:18:22 > 0:18:25So we have asked along a local property expert to see if this
0:18:25 > 0:18:27maisonette is worth a punt.
0:18:30 > 0:18:34The 50-week-a-year occupation here is not too much of a problem.
0:18:34 > 0:18:37People that want to live here full-time can just go away
0:18:37 > 0:18:41for a couple weeks and stay with friends, family or go abroad.
0:18:41 > 0:18:42So it's not a major issue.
0:18:42 > 0:18:46I don't believe it will put investors off buying this property
0:18:46 > 0:18:49that it has a shorter lease
0:18:49 > 0:18:53because I think they are a good-priced properties and they are
0:18:53 > 0:18:57good investments because the rental return is very good.
0:18:57 > 0:18:59What could an owner expect to get
0:18:59 > 0:19:03if they were to let this property guided at 25 to 30,000?
0:19:03 > 0:19:08It would achieve around £500 to £550 per calendar month
0:19:08 > 0:19:11depending on the quality of the renovation.
0:19:11 > 0:19:15We also spoke to a local holiday lettings agent and he thought
0:19:15 > 0:19:20that the property could rent for £380 per week during the height
0:19:20 > 0:19:21of the summer season.
0:19:21 > 0:19:24But what about a sales value?
0:19:24 > 0:19:28When renovated, this property would be valued
0:19:28 > 0:19:31at around £50,000 to £55,000.
0:19:31 > 0:19:33That's without the lease extension.
0:19:33 > 0:19:37So how much might it cost to extend it?
0:19:37 > 0:19:42You may be looking at around £15,000 to £20,000 to extend the lease here.
0:19:44 > 0:19:45Well, it's not the prettiest
0:19:45 > 0:19:50but on a summer's day, this seaside location would be great.
0:19:50 > 0:19:53There are a few issues here with a short lease and a 50-week
0:19:53 > 0:19:57restriction, but when the sun does shine...
0:19:57 > 0:19:58what could be nicer?
0:19:58 > 0:20:02Let's find out who bought this when we head to auction.
0:20:02 > 0:20:06Ground-floor flat, it's in need of improvement. Do I see 25 anywhere?
0:20:06 > 0:20:0825, 25.
0:20:10 > 0:20:1127...
0:20:12 > 0:20:1330.
0:20:14 > 0:20:1633, 35.
0:20:17 > 0:20:1935.5.
0:20:20 > 0:20:2336. Say one if it helps. 36.
0:20:23 > 0:20:25£35,500 we have got.
0:20:26 > 0:20:2936, coming back in, no.
0:20:29 > 0:20:3236.5.
0:20:33 > 0:20:39Back of the room we have got £36,500. I shall sell then at 36.5.
0:20:39 > 0:20:4236.5 for the first time,
0:20:42 > 0:20:4536.5 for the second time.
0:20:45 > 0:20:4836.5 for the third and final time.
0:20:48 > 0:20:49HE BANGS HAMMER
0:20:49 > 0:20:52Sold, sir, £36,500.
0:20:52 > 0:20:57The successful bid of £36,500 came from Trevor.
0:20:59 > 0:21:03Trevor and partner Janet live in Kent. He is retired
0:21:03 > 0:21:06but he has bought and sold property for nearly 50 years
0:21:06 > 0:21:11and still has a small portfolio of lets. I met up with them to see
0:21:11 > 0:21:14what they had in store for this seaside sanctuary.
0:21:14 > 0:21:16- Trevor and Janet, congratulations. - Thank you.
0:21:16 > 0:21:18Why did you want to buy this?
0:21:18 > 0:21:23Well, basically, it was for somewhere for Jay - Janet's son - to live
0:21:23 > 0:21:27because he came to dog-sit for us a year ago...
0:21:27 > 0:21:30- And we have still got him.- ..for two weeks and we have still got him.
0:21:30 > 0:21:33You have still got him. He is living at home with you guys.
0:21:33 > 0:21:36So, Janet, you have obviously been looking somewhere for your son.
0:21:36 > 0:21:38Does this tick all the boxes for him
0:21:38 > 0:21:41and why do you think this kind of place is suitable?
0:21:41 > 0:21:45He is separated and he has got two teenage children, so with the
0:21:45 > 0:21:50two bedrooms they can come down and visit. And he has got a dog,
0:21:50 > 0:21:53so he wanted a ground-floor flat somewhere, and there's lots of
0:21:53 > 0:21:56greenery and everything out here for him and the beach so him and the
0:21:56 > 0:21:58dog can have nice long walls.
0:21:58 > 0:22:01He has got medical problems, so he is not working.
0:22:01 > 0:22:04But he won't be short of visitors when the summer comes
0:22:04 > 0:22:07because he has got a brother and a sister.
0:22:07 > 0:22:10They have both got children, so I think he will be swamped somewhat
0:22:10 > 0:22:12in this little tiny flat!
0:22:12 > 0:22:13- Maybe not so much in the winter.- No.
0:22:13 > 0:22:16But in the summer, everybody will want to visit.
0:22:21 > 0:22:25Jay will have time to kill for two weeks every year but maybe
0:22:25 > 0:22:29he could reprise his dog-sitting role for Trevor and Janet.
0:22:29 > 0:22:32So no worries with the restriction, but there is that short lease.
0:22:32 > 0:22:35Now, guys, let's talk about the lease again because obviously,
0:22:35 > 0:22:38currently it is not a full 99-year lease.
0:22:38 > 0:22:42How much do you think it's going to cost for that lease extension?
0:22:42 > 0:22:44Between £10,000 and £20,000,
0:22:44 > 0:22:47if you want to extend it for another 25 years.
0:22:47 > 0:22:49Janet, do you think that is something your son will want
0:22:49 > 0:22:50- to do straightaway?- No.
0:22:50 > 0:22:55As we have said, we will be dead before the lease is up
0:22:55 > 0:22:59and possibly Jay will as well, because he is in his thirties.
0:22:59 > 0:23:02We can't see that we are going to need to do it.
0:23:08 > 0:23:11Well, I suppose that is one way to think about it.
0:23:11 > 0:23:14So if they are not paying to extend the lease, what sort of budget
0:23:14 > 0:23:17do the couple think they will need to redevelop the property?
0:23:18 > 0:23:21Basically, it's not going to cost a fortune.
0:23:21 > 0:23:23As you can see, it's not huge.
0:23:23 > 0:23:26So probably £3,500, £4,000 is all it's going to need.
0:23:26 > 0:23:28Plumbing and electrics?
0:23:28 > 0:23:34The electrics we need to look at, because there have been bits
0:23:34 > 0:23:39and pieces cobbled on over the years that the property has been occupied,
0:23:39 > 0:23:43which leave me feeling cold because...
0:23:43 > 0:23:45HE CHUCKLES
0:23:45 > 0:23:48..they look pretty horrendous where you have got points spurred off
0:23:48 > 0:23:50of other points.
0:23:50 > 0:23:52You sound like a man that knows what they are talking about.
0:23:52 > 0:23:55Are you involved in renovation, decoration, property development
0:23:55 > 0:23:59- in any way at all?- Yes. I have been.
0:23:59 > 0:24:03I have always been interested in doing up properties ever since
0:24:03 > 0:24:07the first property I bought when I was 21. I have always looked
0:24:07 > 0:24:11for something that has got potential that you can do something with
0:24:11 > 0:24:13to make it worth that bit more.
0:24:13 > 0:24:17I used to convert houses in South London into flats,
0:24:17 > 0:24:20the terraced properties that you go round
0:24:20 > 0:24:22and get worked up about with all the period features.
0:24:22 > 0:24:24- Because I love period features!- So do I! So do I.
0:24:24 > 0:24:27There are none in this property today, I am very upset.
0:24:27 > 0:24:31I know, unfortunately. But, no, I love period features so I always
0:24:31 > 0:24:32used to try and keep them in.
0:24:32 > 0:24:36How long do you think it's going to take to get the place renovated?
0:24:36 > 0:24:38- A month, six weeks.- A month, six weeks, yeah.
0:24:38 > 0:24:43It just depends upon on the amount of days we can get down here
0:24:43 > 0:24:49because what with grandchildren, baby-sitting,
0:24:49 > 0:24:52our time is now a bit more restricted than it was when we bid at auction.
0:24:52 > 0:24:55And Jay is not very good at getting up early. Whoops!
0:24:55 > 0:24:57- Right, that's got to change.- Yes.
0:24:57 > 0:25:01Guys, congratulations and I really hope Jay is happy here. Thank you.
0:25:01 > 0:25:03- Thank you.- Thank you, Lucy.
0:25:03 > 0:25:07Trevor and Janet have renovated properties in the past but this
0:25:07 > 0:25:10time, it will all be for Janet's son, Jay.
0:25:10 > 0:25:12So were they all be able
0:25:12 > 0:25:15to make this the perfect seaside home for him
0:25:15 > 0:25:17or will there be problems ahead?
0:25:17 > 0:25:20You can find out how they get on later in the programme.
0:25:22 > 0:25:27Coming up, there is a surprise for me in this terrace in Stoke.
0:25:27 > 0:25:28What is that?
0:25:30 > 0:25:32That's not something you see every day in the lounge.
0:25:34 > 0:25:36And in Kent, there are more surprises.
0:25:36 > 0:25:38When we took the kitchen out,
0:25:38 > 0:25:42found a maze of wiring behind with bits cobbled on here and there.
0:25:46 > 0:25:49Welcome back to Cymmer, near Port Talbot, otherwise known as
0:25:49 > 0:25:51Little Switzerland.
0:25:51 > 0:25:55I was looking at this ex-local authority three-bed semi.
0:25:56 > 0:26:00It had some terrible polystyrene tiles and a little dodgy damp
0:26:00 > 0:26:04but it also had a guide price of £30,000.
0:26:04 > 0:26:09It was of non-standard construction, but even that had been rectified
0:26:09 > 0:26:13with the new brick skin. This looked interesting.
0:26:23 > 0:26:27I just loved Lynn and Collin's excitement at the auction.
0:26:27 > 0:26:29They have set up a company together
0:26:29 > 0:26:32and it appeared Homes Under The Hammer had a hand in it.
0:26:33 > 0:26:36- I was a primary school teacher for 34 years.- Wow.
0:26:36 > 0:26:39And during the last year, I did have an injury to my back and neck
0:26:39 > 0:26:42and while I was off, I watched Homes Under The Hammer, which inspired
0:26:42 > 0:26:46- me and thought, "I can have a go at it."- Right, so we have some way
0:26:46 > 0:26:50- guided you to where you are now. - Yeah, definitely.- Brilliant.
0:26:50 > 0:26:54Lucy and I love to hear of people being inspired by the series.
0:26:54 > 0:26:57A passion for property is very exciting and it looks like
0:26:57 > 0:26:59they had done their homework.
0:26:59 > 0:27:02Reading the legal pack, doing research on their builders and
0:27:02 > 0:27:07getting a quote of £15,000 for the work at a timescale of six weeks.
0:27:07 > 0:27:09And yes, they were still excited.
0:27:11 > 0:27:14So how do you feel about this venture then? This move from
0:27:14 > 0:27:16previous lives to where you are now?
0:27:16 > 0:27:18Bring it on!
0:27:18 > 0:27:22Ooh-hoo, I am really excited, yeah. Very excited.
0:27:22 > 0:27:23MARTIN CHUCKLES
0:27:23 > 0:27:26"Bring it on," she says.
0:27:26 > 0:27:29Well, just over six weeks later, we are back.
0:27:44 > 0:27:47It's looking very smart indeed.
0:27:47 > 0:27:51Lynn and Colin have had their builders transform this tired semi.
0:27:51 > 0:27:53If you recall, Lynn had found them
0:27:53 > 0:27:57on the web but had checked them out thoroughly, so how did it turn out?
0:27:58 > 0:28:02They have been marvellous, absolutely an amazing team.
0:28:02 > 0:28:07And I said to them at the start, "Please don't bring us issues,
0:28:07 > 0:28:09just solutions," and they have done just that.
0:28:09 > 0:28:12So it's been a really lovely project to do.
0:28:12 > 0:28:15We said six weeks from the start and it's been about six weeks
0:28:15 > 0:28:20and a day, so very good. They have worked to schedule.
0:28:20 > 0:28:24Clock has been ticking, we knew you were coming back and they have
0:28:24 > 0:28:27been very good working to the time schedule.
0:28:36 > 0:28:38It just goes to show that good research pays off.
0:28:38 > 0:28:41Especially when you think you are trusting a builder not only with
0:28:41 > 0:28:44a budget but with your whole investment.
0:28:44 > 0:28:48Pick your tradesmen carefully and don't just go on price.
0:28:48 > 0:28:51I am glad to see those awful polystyrene tiles have gone
0:28:51 > 0:28:55and so has the damp that was behind them. However, that wasn't
0:28:55 > 0:28:58entirely straightforward, as it turned out.
0:28:58 > 0:29:02When the polystyrene tiles came down, so did the ceilings.
0:29:02 > 0:29:06So those ceilings all had to be replaced - an unforeseen cost.
0:29:06 > 0:29:08Which meant they had to give up the idea
0:29:08 > 0:29:11of putting in off-street parking.
0:29:11 > 0:29:14Some asbestos had to be safely removed from the outhouse too.
0:29:16 > 0:29:19Lynn, however, was carrying on with that job I fancied. You know,
0:29:19 > 0:29:21the coffee and brochures job.
0:29:22 > 0:29:26I have chosen the tiles in the kitchen, the bathroom, the flooring.
0:29:27 > 0:29:29The design of it, really.
0:29:30 > 0:29:35And have come down once a week to just check on progress.
0:29:35 > 0:29:37Very, very pleased with the end product.
0:29:37 > 0:29:42My role has been looking after the money side of things.
0:29:42 > 0:29:47Checking on the account regularly, etc. So it has been a good
0:29:47 > 0:29:48experience for a first project.
0:29:48 > 0:29:51It sounds like a real team effort.
0:29:51 > 0:29:55By the looks of the house, I think Lynn has done well with the design,
0:29:55 > 0:29:59so how has Colin done sticking to that £15,000 budget?
0:29:59 > 0:30:03Especially with the unforeseen ceiling issue.
0:30:03 > 0:30:06We are pretty well on budget in actual fact, so we have been very lucky.
0:30:06 > 0:30:10Again, it's because of the very good builders that we have had.
0:30:10 > 0:30:15With the builders delivering on that £15,000 quote and the purchase
0:30:15 > 0:30:21price of £32,000, Lynn and Colin have invested a total of £47,000.
0:30:21 > 0:30:25So has their first foray into development been a success?
0:30:25 > 0:30:29We asked two estate agents along to give an appraisal of it.
0:30:29 > 0:30:33MAN: This is my first visit to the property. It has been very
0:30:33 > 0:30:37tastefully done. Lovely bathroom, nice kitchen and the views
0:30:37 > 0:30:41from the upstairs windows over the valley are exquisite.
0:30:41 > 0:30:45The new owners said that they were going to knock the bathroom
0:30:45 > 0:30:47and toilet through, which they have done
0:30:47 > 0:30:50and made a very big improvement to the property.
0:30:50 > 0:30:52They have actually done a really good job.
0:30:53 > 0:30:57So having spent a total of £47,000, how much would it be worth
0:30:57 > 0:31:00were they to sell or rent out the property?
0:31:01 > 0:31:06I would place the property on the market for sale at around £65,000
0:31:06 > 0:31:10and expect it to fetch anywhere from £57,500 upwards.
0:31:10 > 0:31:16I would recommend putting the property up for sale at £64,950.
0:31:16 > 0:31:20With rental value, I would place the property on the market for
0:31:20 > 0:31:24£425 to £450 per calendar month.
0:31:24 > 0:31:29And rental value I would recommend £500 per calendar month.
0:31:29 > 0:31:31Well, £500 is marvellous.
0:31:31 > 0:31:35You know, it has never been Colin's intention to rent it out,
0:31:35 > 0:31:38but they certainly are really good rental values. Worth thinking
0:31:38 > 0:31:40about if it doesn't sell.
0:31:40 > 0:31:43The top rental would mean a yield of nearly 13%,
0:31:43 > 0:31:46which is certainly a great plan B.
0:31:46 > 0:31:51However, since their intention is to sell, that top value of £65,000
0:31:51 > 0:31:54would give a pre-tax profit of £18,000.
0:31:54 > 0:31:57So will this just be chalked up to experience
0:31:57 > 0:32:00or will there be another project for the pair?
0:32:00 > 0:32:03I would love to do another one.
0:32:03 > 0:32:09Yeah, so if this one gets sold, maybe we could do another one then.
0:32:12 > 0:32:15Penkhull is a village four miles from Stoke city centre and has
0:32:15 > 0:32:20easy access to the M6. And all those cars owe a debt to Penkhull
0:32:20 > 0:32:24as it was the home of the inventor of the spark plug.
0:32:31 > 0:32:34So what was on offer at the auction?
0:32:34 > 0:32:38Well, a traditional two-bedroomed mid-terrace at a guide price
0:32:38 > 0:32:42of £50,000 plus. This is it.
0:32:42 > 0:32:45Looks OK from the outside, in we go.
0:32:45 > 0:32:48So not expecting anything too dramatically different.
0:32:48 > 0:32:52And sure enough, straight off the pavement into your living room.
0:32:52 > 0:32:56One thing you notice straightaway though is a few nice touches.
0:32:56 > 0:33:01Cornicing. I mean, it seems like it's possibly a little bit up
0:33:01 > 0:33:03from the norm in terms of terraces.
0:33:03 > 0:33:09And, yes, some original features still in place. Old fireplace.
0:33:09 > 0:33:10But what is that?
0:33:13 > 0:33:15That's not something you see every day in the lounge.
0:33:17 > 0:33:18It's got to be done...
0:33:21 > 0:33:22HE HUMS
0:33:34 > 0:33:37Wow! Teleportation device.
0:33:37 > 0:33:40Quite an unusual feature for a mid-terrace in Stoke.
0:33:41 > 0:33:44Pretty useful though. What have we got up here though? Two bedrooms.
0:33:44 > 0:33:46Good-sized one up here.
0:33:46 > 0:33:50Not ideal, through it is the location of the bathroom.
0:33:50 > 0:33:52It looks like it needs a bit of work
0:33:52 > 0:33:55but you might have expected that, good.
0:33:56 > 0:33:58I wonder if it works both ways.
0:34:06 > 0:34:10Of course, there are stairs that lead up to the two bedrooms
0:34:10 > 0:34:14for those people that don't have access to teleporters powered by
0:34:14 > 0:34:16the magic of television.
0:34:20 > 0:34:23So what else have we got down here?
0:34:23 > 0:34:25Well, through to the rear sitting room.
0:34:25 > 0:34:28Now, that's a pretty impressive fireplace!
0:34:28 > 0:34:30I like the choice of bricks.
0:34:30 > 0:34:34It's a little bit overpowering in such a small room but, yeah,
0:34:34 > 0:34:36it's a good-sized space.
0:34:36 > 0:34:40And then, this is probably where the property would have ended in its
0:34:40 > 0:34:45early incarnation, but now an extension has created a kitchen
0:34:45 > 0:34:51and through that to a downstairs loo. So actually, a lot of space.
0:34:51 > 0:34:52HE CHUCKLES
0:34:52 > 0:34:56An unusual house in many respects.
0:35:03 > 0:35:07The issue with this house is how to make it more typical
0:35:07 > 0:35:09for a would-be renter or purchaser.
0:35:09 > 0:35:12Normally, I would be jumping for joy at a terrace with two bathrooms
0:35:12 > 0:35:18but access to both is not great and I think some major re-juggling is required.
0:35:18 > 0:35:22And I don't think a shower cubicle in the living room is the answer.
0:35:22 > 0:35:25Well, at the back of the property, a little courtyard.
0:35:25 > 0:35:27Yeah, I mean, it is what it is.
0:35:27 > 0:35:32You can see this is the extension that contains that kitchen and bathroom.
0:35:32 > 0:35:35Useful little shed at the end there, a bit more garden there.
0:35:35 > 0:35:38I mean, it's not massive but especially if you are renting out a place like this,
0:35:38 > 0:35:41you want somewhere that's low-maintenance and it certainly ticks
0:35:41 > 0:35:44those boxes with a bit of additional storage.
0:35:44 > 0:35:46So all in all, yep, a nice little bonus.
0:35:46 > 0:35:49This property clearly needs modernisation but with all that space
0:35:49 > 0:35:52and a guide price of £50,000,
0:35:52 > 0:35:54I think this house could be worth a look.
0:35:56 > 0:35:58We asked an agent from the auction house
0:35:58 > 0:36:00who sold it to tell us his thoughts.
0:36:00 > 0:36:03This property is a really well-proportioned
0:36:03 > 0:36:05traditional terrace.
0:36:05 > 0:36:09Offers bags of potential to renovate as it is or even reconfigure
0:36:09 > 0:36:12to perhaps a three-bedroom property.
0:36:12 > 0:36:15This property has two bathrooms at the moment -
0:36:15 > 0:36:17one upstairs and one downstairs.
0:36:17 > 0:36:21It would make total sense to have the property as a three-bedroom,
0:36:21 > 0:36:24utilising that bathroom space upstairs
0:36:24 > 0:36:27and keeping a bathroom downstairs.
0:36:27 > 0:36:30Ah, so there may even be scope for a third bedroom. Though if that
0:36:30 > 0:36:33were the case, I do think something would have to be done
0:36:33 > 0:36:37about the position of the stairs. How would that affect the values?
0:36:39 > 0:36:43Once the renovation has been carried out in its current layout as a
0:36:43 > 0:36:48two-bedroom property, I would expect it to be worth £85,000.
0:36:48 > 0:36:53If the new owner were to renovate and reconfigure and turn the property
0:36:53 > 0:36:57into a three-bedroom, I would happily have it on the market at £100,000.
0:36:57 > 0:37:02On the same basis, a two-bedroom property around here would rent for
0:37:02 > 0:37:05£500 per calendar month and if it were a three-bedroom, it would expect
0:37:05 > 0:37:09to be achieving £550 per calendar month.
0:37:11 > 0:37:15Well, what a surprising little property this has turned out to be.
0:37:15 > 0:37:17In fact, it has been a bit of a star.
0:37:17 > 0:37:21I'm so pleased I made the trek to come and see it.
0:37:23 > 0:37:25Let's see who bought it when it went under the hammer.
0:37:25 > 0:37:31Lot 76, it is a mid-terraced house with two bedrooms. 45 going to say.
0:37:31 > 0:37:3845 in the aisle, thank you. At £45,000. 50 going to say now. At 45.
0:37:38 > 0:37:4350 in front of me in the aisle, 50. 55? 55...
0:37:43 > 0:37:47This lot came up towards the end of the auction day and was slow but steady.
0:37:47 > 0:37:51We rejoin the bidding at £70,000.
0:37:51 > 0:37:55At 70 with you in the aisle, sir. At £70,000, are we all done now?
0:37:55 > 0:37:57I will go quick.
0:37:58 > 0:38:02£70,500. 70.5. Are you sure?
0:38:03 > 0:38:06At £70,500 then. The lady has bid, no mistakes.
0:38:06 > 0:38:09£70,500 for the first time,
0:38:09 > 0:38:12£70,500 for the second time,
0:38:12 > 0:38:16third and final time, at £70,500.
0:38:16 > 0:38:18You're lot, madam, well done.
0:38:18 > 0:38:20And the successful bidders were Joanne
0:38:20 > 0:38:24and her husband Mark, who is a retired police officer.
0:38:24 > 0:38:28They have five children - aged 15, 12, eight, six
0:38:28 > 0:38:30and two-year-old Daniel,
0:38:30 > 0:38:35who has come along to approve Mum and Dad's fourth portfolio purchase.
0:38:35 > 0:38:39I chatted to Joanne and Mark while little Daniel watched from the wings.
0:38:39 > 0:38:42- Mark, Joanne, good to meet you both. - And you.- Thank you.
0:38:42 > 0:38:46- Congratulations.- Thank you.- Tell me why you wanted to buy this house.
0:38:46 > 0:38:49I think it was the general layout and the opportunity it presented
0:38:49 > 0:38:52to actually do something with it to make it different. And to perhaps
0:38:52 > 0:38:54bring it back to life a little bit, really, cos it's a bit tired.
0:38:54 > 0:38:57- It's a really nice classic old house. - Yes, it is, it's lovely.
0:38:57 > 0:39:00Got an upstairs bathroom as well which I think was a bonus, wasn't it?
0:39:00 > 0:39:03- Because many of the terraces don't have upstairs bathrooms.- No.
0:39:03 > 0:39:05- That's right.- So what are the plans for it then?
0:39:05 > 0:39:08I think we have worked out a way to get a third bedroom upstairs,
0:39:08 > 0:39:09to move the bathroom upstairs
0:39:09 > 0:39:12and to make it a decent sized three-bedroom house.
0:39:12 > 0:39:16- Three bedrooms with a bathroom still upstairs?- A bathroom still upstairs, yeah.
0:39:16 > 0:39:18- Really? How are you going to do that then?- Right, what we are
0:39:18 > 0:39:22going to do is where the bathroom currently sits, that is coming out totally.
0:39:22 > 0:39:25We are going to put a small shower room in to what is now the
0:39:25 > 0:39:30second bedroom and basically stud the wall off to create a smaller bedroom.
0:39:30 > 0:39:32- So there will be one big bedroom, two singles.- Oh, right.
0:39:32 > 0:39:35And that room where the bathroom is right now is going to be what?
0:39:35 > 0:39:38- That will be a bedroom there.- That will be a bedroom.- Yes.
0:39:38 > 0:39:41And how will you access that without going through the other bedroom?
0:39:41 > 0:39:44What we are going to have to do is we have to create a landing and a hall
0:39:44 > 0:39:48area to go from the top of the stairs along the back wall there
0:39:48 > 0:39:52and down to what will be a new opening to the bathroom.
0:39:52 > 0:39:56That might sound complicated but actually it's a really good solution.
0:39:56 > 0:39:59Mark and Joanne have recognised that a third bedroom is a bonus and
0:39:59 > 0:40:05I am really liking their thinking in not losing that upstairs bathroom.
0:40:05 > 0:40:08Now, what about those other quirky features in this house?
0:40:08 > 0:40:11Will they be hanging on to them too, I wonder.
0:40:11 > 0:40:15Things like the fireplace behind us. Is it going to stay?
0:40:15 > 0:40:19My initial thought was no. I actually hated it when I walked in.
0:40:19 > 0:40:23It is growing on me very slightly but I did hate it when I started
0:40:23 > 0:40:26- and I'm not sure about Jo.- No, I'm not keen.- Not keen so it's
0:40:26 > 0:40:28- going to be taken out, is it?- Quite possibly.
0:40:30 > 0:40:32We've got a bit of an issue with a fireplace in the last property
0:40:32 > 0:40:34cos I wanted to take it out, Jo wanted to leave it.
0:40:34 > 0:40:37We ended up leaving it and getting covered in soot at the last minute
0:40:37 > 0:40:40- and having to redo all the decor.- We did, after we had done the whole house.
0:40:40 > 0:40:44- You did the fireplace after you decorated?- Big mistake, big mistake.
0:40:44 > 0:40:47- Yeah.- Note to self, yeah! - Definitely.
0:40:57 > 0:41:00Now, I hope you are listening at home. Never underestimate how
0:41:00 > 0:41:05important planning a project is. Otherwise you can end up with egg,
0:41:05 > 0:41:09or in Mark's case, soot, all over your face.
0:41:09 > 0:41:13And carpets and freshly painted walls. Now you would think this
0:41:13 > 0:41:17might have put Mark off, but not a bit of it.
0:41:18 > 0:41:22I'm going to try and do most things, really. The only thing I don't do,
0:41:22 > 0:41:24I don't touch electrics in any way, shape or form.
0:41:24 > 0:41:27- I'll have a go at windows, I will have a go at carpentry.- Oh, really?
0:41:27 > 0:41:30- What will your sort of involvement be, Joanne?- I think initially,
0:41:30 > 0:41:33as we did with the last one, we all turned up with the children, didn't we?
0:41:33 > 0:41:34- We have got five children.- Wow.
0:41:34 > 0:41:38We turned up with seven of us with paint strippers and scrapers
0:41:38 > 0:41:40and we stripped the house.
0:41:40 > 0:41:43I think we will get all of them in to start with, to get all the walls
0:41:43 > 0:41:46stripped and then I will perhaps hand over.
0:41:46 > 0:41:47HE LAUGHS
0:41:47 > 0:41:50- So a real family effort.- Yes.- Oh, good fun.- Yeah.
0:41:50 > 0:41:54Well, Daniel, you might just be two but it looks like it is time to get
0:41:54 > 0:41:56your tools at the ready.
0:41:56 > 0:41:59There should be a healthy profit in this house if they do create that
0:41:59 > 0:42:03third bedroom, but still there is quite a bit of work to do.
0:42:03 > 0:42:06Maybe that is why Daniel looks so pensive or maybe it's because
0:42:06 > 0:42:09he has checked out Mum and Dad's budget.
0:42:09 > 0:42:13- So what's the budget for the work? - About £8,000.- OK.
0:42:13 > 0:42:17- And does that include a new kitchen? - A new kitchen, yes, new bathroom.
0:42:17 > 0:42:20There's obviously a little bit of damp upstairs that we need to sort out.
0:42:20 > 0:42:22And mainly it is decor. New doors
0:42:22 > 0:42:25and a few windows upstairs need replacing, that sort of thing.
0:42:25 > 0:42:29- And the budget that you've just said, I have got a higher budget than that.- Oh, right.
0:42:29 > 0:42:33We did on the last property, you had a much lower budget than me.
0:42:33 > 0:42:36- Perhaps you are more of an optimist. - And who was right last time?
0:42:36 > 0:42:39- I was last time.- Yeah, you were. - And what did you say last time?
0:42:39 > 0:42:43- Last time I said 19, I think.- 19.- 19.
0:42:43 > 0:42:46- And what did you say?- I said about 24.- 24.
0:42:46 > 0:42:49And now you are saying eight and what are you saying for this one?
0:42:49 > 0:42:52- I am saying nearer to 12.- Wow. A big discrepancy again.
0:42:52 > 0:42:55- What are you factoring in that hubby isn't?- Nothing, exactly the same
0:42:55 > 0:42:59but I'm just giving a little more leeway for each.
0:42:59 > 0:43:01- So it will be interesting to see who is right.- Yes.
0:43:01 > 0:43:04At least you are pleasantly surprised if you do it my way.
0:43:04 > 0:43:06Well, yes, exactly. What's the timescale?
0:43:06 > 0:43:08Um, hopefully about six months.
0:43:08 > 0:43:12- Right. And then see what the market is doing?- Yes.
0:43:12 > 0:43:15- See what the market is doing. - Congratulations anyway.
0:43:15 > 0:43:18- I wish you good luck and look forward to seeing how you get on. - Thank you.
0:43:18 > 0:43:20- All the best.- Thank you!- Thank you.
0:43:25 > 0:43:28I think Mark and Joanne have got a great little house here and
0:43:28 > 0:43:31possibly, more than they bargained for. How will they get on sorting
0:43:31 > 0:43:35it out? You can find out later in the show.
0:43:39 > 0:43:41So we have seen one property sorted
0:43:41 > 0:43:44- but we have got two more to check out.- How did they get on?
0:43:44 > 0:43:45Let's find out.
0:43:50 > 0:43:53Yes, that wonderful weather can only mean one thing - we are back
0:43:53 > 0:43:56at the British seaside.
0:43:56 > 0:43:59The Isle of Sheppey in Kent, specifically, to see this
0:43:59 > 0:44:03two-bedroom maisonette. With a guide price of £25,000 to £30,000,
0:44:03 > 0:44:05it certainly had some positives.
0:44:05 > 0:44:08There were good-sized bedrooms and double glazing.
0:44:08 > 0:44:11There was one unusual downside though.
0:44:11 > 0:44:16You are only allowed to occupy this property for 50 weeks of the year.
0:44:16 > 0:44:21Not 52, just 50. And that is because these properties were originally
0:44:21 > 0:44:24meant to be used exclusively for holiday use.
0:44:32 > 0:44:36Whoever was moving in here was going to have to run away for at least
0:44:36 > 0:44:39two weeks of the year. So would that put people off?
0:44:39 > 0:44:41Not these buyers anyway.
0:44:41 > 0:44:44Trevor and Janet liked what they saw and bought the maisonette
0:44:44 > 0:44:48for £36,500 as a home for Janet's son, Jay.
0:44:50 > 0:44:54- He came to dog-sit for us a year ago...- And we have still got him.
0:44:54 > 0:44:57- ..for two weeks and we have still got him.- You have still got him?
0:44:57 > 0:44:59- He's living at home with you guys. - Yes.
0:44:59 > 0:45:03This property could prove ideal for Jay providing space for his two
0:45:03 > 0:45:05teenage children to visit.
0:45:13 > 0:45:17Armed with a budget of £4,000 and a timescale of six weeks, could
0:45:17 > 0:45:19Trevor and Janet make it happen?
0:45:26 > 0:45:30On an ever so slightly calmer day, we have returned to Leysdown-on-Sea
0:45:30 > 0:45:32to see how Trevor and Janet got on.
0:45:48 > 0:45:50We are beginning to see how it might look on a day
0:45:50 > 0:45:52when there's some sunlight.
0:45:52 > 0:45:54And it looks like Trevor and Janet are sticking fairly well
0:45:54 > 0:45:58to their tight timeframe of four to six weeks.
0:45:58 > 0:46:02In the last four weeks, we have basically taken the kitchen out
0:46:02 > 0:46:07because we were looking to paint the doors but they were so cheap
0:46:07 > 0:46:13and awful, it was easier and looked better to take it out and completely redo it.
0:46:13 > 0:46:16It's been redecorated throughout.
0:46:16 > 0:46:21We still, unfortunately, have got to finish off the shower room.
0:46:21 > 0:46:23We have got the tiles for the floor,
0:46:23 > 0:46:26but I haven't had time to put them down yet.
0:46:26 > 0:46:29Everywhere has had about four coats of paint.
0:46:29 > 0:46:32It's taken an awful lot of paint to...to do it, apparently.
0:46:32 > 0:46:37Yes, it took four coats and two undercoats to cover the green
0:46:37 > 0:46:40and the orange on the coving.
0:46:40 > 0:46:42So virtually every day for the first two weeks,
0:46:42 > 0:46:44it was coats of paint everywhere.
0:46:56 > 0:46:58Isn't it always the way?
0:46:58 > 0:47:02Covering bold colours always takes so many more coats than you think.
0:47:02 > 0:47:04But if you persevere, I think it is
0:47:04 > 0:47:08worth it for a lovely finish like this.
0:47:08 > 0:47:12But the paint was the least of Janet and Trevor's problems in this room.
0:47:13 > 0:47:15When we took the kitchen out,
0:47:15 > 0:47:19behind all the cupboards, was a maze of wires.
0:47:19 > 0:47:21Here, there and everywhere.
0:47:21 > 0:47:23Bits cobbled onto other bits.
0:47:23 > 0:47:28So we stripped all of those out, took it back to basics,
0:47:28 > 0:47:31put in the new kitchen.
0:47:31 > 0:47:34I re-tiled it last weekend.
0:47:34 > 0:47:37And I think it looks fabulous now.
0:47:38 > 0:47:41And I think you are absolutely right.
0:47:41 > 0:47:43It's been far from plain sailing, though.
0:47:43 > 0:47:46Unfortunately, during the development, Trevor has been
0:47:46 > 0:47:50ill and had to make regular visits to the local hospital.
0:47:50 > 0:47:52However, Janet's son, Jay,
0:47:52 > 0:47:56found his skills as a former professional painter and decorator
0:47:56 > 0:48:00came in very handy for transforming what is to be his new home.
0:48:01 > 0:48:03Oh, Jay has been really involved.
0:48:03 > 0:48:05He's done all the painting
0:48:05 > 0:48:08and he and his dad put the floor down, didn't they?
0:48:08 > 0:48:09Yeah.
0:48:09 > 0:48:12Because his dad came down and helped on days
0:48:12 > 0:48:13when Trevor couldn't be here.
0:48:13 > 0:48:17The schedule has almost gone to plan.
0:48:17 > 0:48:21Um... We're now four weeks in.
0:48:21 > 0:48:25And if it hadn't been for the hospital visits
0:48:25 > 0:48:30and the days lost there, we would virtually have finished everything.
0:48:30 > 0:48:32The bathroom and everything would've been done.
0:48:32 > 0:48:36So, thanks to everyone chipping in, despite Trevor's illness,
0:48:36 > 0:48:40they're still due to complete within that four to six-week timescale.
0:48:40 > 0:48:43How have they done sticking to their budget?
0:48:43 > 0:48:47We've spent £3,750.
0:48:47 > 0:48:53Which considering we've put in a new kitchen, is very good.
0:48:53 > 0:48:56Because the original budget was about 3,500.
0:48:56 > 0:49:01And, obviously, the kitchen has cost a lot more than £250.
0:49:02 > 0:49:06Trevor and Janet paid £36,500 for the property at auction
0:49:06 > 0:49:10and always said they could spend up to around four grand.
0:49:10 > 0:49:13So it's good going staying below that top limit,
0:49:13 > 0:49:16especially as they couldn't salvage the kitchen.
0:49:16 > 0:49:19We've asked along two local property experts to check
0:49:19 > 0:49:21out their handiwork.
0:49:21 > 0:49:23I think, realistically,
0:49:23 > 0:49:26I think they have pretty much done what they can do.
0:49:26 > 0:49:29I mean, it's very difficult when you've got a limited space to
0:49:29 > 0:49:31sort of really turn it into something different.
0:49:31 > 0:49:34But they have made the best of what they've got here.
0:49:34 > 0:49:38It has been modernised throughout to a good standard.
0:49:38 > 0:49:41Still bits to finish, but overall, good finish.
0:49:41 > 0:49:45Of course, this project has always been about creating
0:49:45 > 0:49:48a home for Janet's son, Jay.
0:49:48 > 0:49:52But having spent a total of £40,250,
0:49:52 > 0:49:56what would the property be worth in the sales and rental markets?
0:49:56 > 0:49:58I would vend this at £50,000.
0:49:58 > 0:50:03Rental wise, we would expect to achieve £450 per calendar month.
0:50:03 > 0:50:07I believe this property can be marketed at £40,000 to £50,000.
0:50:07 > 0:50:11I believe that this property could rent for between £500
0:50:11 > 0:50:13and £550 per calendar month.
0:50:14 > 0:50:16Taking the higher valuations,
0:50:16 > 0:50:20that would mean a potential pre-tax profit of £9,750,
0:50:20 > 0:50:22were they to sell,
0:50:22 > 0:50:26or a yield of over 16% if they were to rent.
0:50:26 > 0:50:28Now, that is a big yield.
0:50:28 > 0:50:31But this was all about creating a home for Jay.
0:50:31 > 0:50:33Uh... Wasn't it?
0:50:35 > 0:50:38We didn't do it with the idea of making a profit out of it,
0:50:38 > 0:50:42but if that is the end result, can't complain at that.
0:50:42 > 0:50:44Now, we might grow Jay out then.
0:50:45 > 0:50:48- Just for the profit. - Just for the profit.
0:50:48 > 0:50:51But she's only kidding, Jay, honest!
0:50:51 > 0:50:54You enjoy your lovely new home.
0:51:02 > 0:51:05Welcome back to Penkhull, a popular suburb of Stoke.
0:51:05 > 0:51:08We were here to look at a classic two-bedroom terrace.
0:51:12 > 0:51:14For a guide of £50,000,
0:51:14 > 0:51:16it had two bathrooms,
0:51:16 > 0:51:18an extension at the back,
0:51:18 > 0:51:21an overbearing fireplace
0:51:21 > 0:51:23and a teleporter in the living room.
0:51:23 > 0:51:27(But we'll keep that to ourselves. Otherwise, everyone will want one.)
0:51:28 > 0:51:32It was bought at auction by husband and wife Mark and Joanne
0:51:32 > 0:51:34for £70,500.
0:51:34 > 0:51:37They were in agreement about what needed doing,
0:51:37 > 0:51:41just had different opinions on how much it would cost.
0:51:41 > 0:51:43Now, you're saying eight. And what are you saying?
0:51:43 > 0:51:45I'm saying nearer to 12.
0:51:45 > 0:51:47Wow. What are you factoring in that hubby isn't?
0:51:47 > 0:51:49Nothing, exactly the same,
0:51:49 > 0:51:52but I'm just giving it a little bit more leeway for each.
0:51:52 > 0:51:54At least you're pleasantly surprised if you do it my way.
0:51:54 > 0:51:56Well, yes, exactly.
0:52:03 > 0:52:07So, with a budget of maybe 8,000, maybe 12,000,
0:52:07 > 0:52:10depending on who you think is right, and a timescale of
0:52:10 > 0:52:14an agreed six months, Mark and Joanne set out to move the bathroom,
0:52:14 > 0:52:18add a third bedroom and completely modernise this terrace.
0:52:25 > 0:52:29Nine months later, it is time for us to return to see if Mark
0:52:29 > 0:52:33and Joanne have teleported this terrace into the 21st century.
0:52:45 > 0:52:48The ground floor has been fully modernised with a new bathroom
0:52:48 > 0:52:53replacing the old WC and utility room at the end of the kitchen.
0:52:53 > 0:52:56In the living area next to the kitchen,
0:52:56 > 0:52:58that imposing fireplace has been removed.
0:52:58 > 0:53:00It really opens up the room.
0:53:00 > 0:53:03Although the ground floor hasn't been reconfigured,
0:53:03 > 0:53:06the upstairs most certainly has.
0:53:06 > 0:53:10Upstairs, we have changed it from two bedrooms into three bedrooms.
0:53:10 > 0:53:14And we have put a small cloakroom in upstairs as well.
0:53:14 > 0:53:17I was going to put a shower room and a toilet and a sink all in one.
0:53:17 > 0:53:20I tried desperately to squeeze it in,
0:53:20 > 0:53:22but there is no way it was going to fit. It was just too big.
0:53:22 > 0:53:26So I decided to settle for a toilet and a hand basin.
0:53:26 > 0:53:28The bathroom downstairs is fine. The problem is - if you get up
0:53:28 > 0:53:29in the night, the last thing
0:53:29 > 0:53:31you're going to do, especially with children,
0:53:31 > 0:53:34is walk down a flight of stairs, through a long, thin house,
0:53:34 > 0:53:36to go to the toilet or whatever.
0:53:36 > 0:53:38So, yeah, I always wanted to get something up there.
0:53:46 > 0:53:49Well, long walks to the loo in the middle of the night won't be
0:53:49 > 0:53:52a problem thanks to the upstairs WC.
0:53:52 > 0:53:56And there have been some other significant changes.
0:53:56 > 0:53:59Originally, when you came to the top of the stairs here, there was
0:53:59 > 0:54:02a solid wall that stretched all the way along there.
0:54:02 > 0:54:05And there was actually a door here, which was the bedroom door.
0:54:05 > 0:54:08So actually, you walked into...directly into the bedroom.
0:54:08 > 0:54:11So what we have done is taken this wall out to open the whole thing up
0:54:11 > 0:54:14and created a corridor that runs down there
0:54:14 > 0:54:16and runs off to the third bedroom there.
0:54:16 > 0:54:18And made it a third bedroom in there itself.
0:54:18 > 0:54:21So it has opened the whole of the upstairs up quite a bit.
0:54:21 > 0:54:25It is always hard to get your head around a reconfiguration,
0:54:25 > 0:54:27but this has really worked.
0:54:27 > 0:54:31Stealing space from the big bedrooms allowed Mark to create a lovely,
0:54:31 > 0:54:35open hallway and solve those access issues to the loo.
0:54:35 > 0:54:38Changing this place was always a big ask,
0:54:38 > 0:54:42so did father-of-five Mark find time to get stuck in here?
0:54:42 > 0:54:45The majority of work has been done by myself
0:54:45 > 0:54:48and a number of different contractors that I've had in, subcontractors.
0:54:48 > 0:54:52I think the biggest part of the whole thing was the actual plastering,
0:54:52 > 0:54:55which was done by some people that I employed.
0:54:55 > 0:54:56That was a massive job.
0:54:56 > 0:54:58I never touch anything to do with gas or electrics,
0:54:58 > 0:54:59anything like that at all.
0:54:59 > 0:55:01I did the plumbing in this house, which is unusual.
0:55:01 > 0:55:04I don't normally do plumbing. I did the plumbing in this one.
0:55:04 > 0:55:07It started off with not being able to get a plumber in at the right
0:55:07 > 0:55:09price, really. That's where it all started.
0:55:09 > 0:55:12And I took it all out, sort of followed my steps backward
0:55:12 > 0:55:14and had it all checked when it was all finished.
0:55:20 > 0:55:22Top score for Mark for tackling this
0:55:22 > 0:55:25and taking the required steps of getting it all checked
0:55:25 > 0:55:28thoroughly by a professional and properly certified.
0:55:28 > 0:55:31Not only did he tackle the plumbing,
0:55:31 > 0:55:35he put in the granite work surfaces and a wall was removed to
0:55:35 > 0:55:38incorporate the utility area into the kitchen.
0:55:38 > 0:55:41And with new windows throughout, it all looks good.
0:55:41 > 0:55:45This place has a really nice finish and they have tackled some
0:55:45 > 0:55:48pretty big jobs, so who was right about that budget?
0:55:48 > 0:55:54Mark predicted eight and wife Joanne said it would be near 12,000.
0:55:54 > 0:55:57I didn't count on the amount of plastering that was required.
0:55:57 > 0:55:59I didn't count on the new boiler that was needed.
0:55:59 > 0:56:01So Jo was much, much closer than I was.
0:56:03 > 0:56:06Mark's final spend was in fact £14,000,
0:56:06 > 0:56:10on top of the 70,500 he had paid at auction.
0:56:11 > 0:56:14We've asked along two local property experts
0:56:14 > 0:56:16to see if this money, along with
0:56:16 > 0:56:19the nine-months' work, have been worth it.
0:56:19 > 0:56:21Coming back to the property again,
0:56:21 > 0:56:23I am amazed at the transformation.
0:56:23 > 0:56:25It really is unrecognizable... For the better.
0:56:25 > 0:56:28Yeah, fantastic job has been done.
0:56:28 > 0:56:30I feel that the configuration upstairs works
0:56:30 > 0:56:31well for the property.
0:56:31 > 0:56:34Now, the property has three bedrooms and a first-floor toilet.
0:56:34 > 0:56:37It certainly will appeal to lots of clients.
0:56:37 > 0:56:42Some excellent feedback from our experts. So let's not hang about.
0:56:42 > 0:56:44Mark has spent a total of 84,500,
0:56:44 > 0:56:49so what could he expect were he to sell or let the property?
0:56:49 > 0:56:52If I were to put this property on the market for resale,
0:56:52 > 0:56:56I'd be expecting to achieve a figure in the region of £100,000.
0:56:56 > 0:56:59In today's market, I'd suggest the property is worth
0:56:59 > 0:57:01in the region of £95,000.
0:57:01 > 0:57:05The top valuation of £100,000 would give Mark and Joanne
0:57:05 > 0:57:09a potential pre-tax profit of 15,500.
0:57:09 > 0:57:10What about rentals?
0:57:12 > 0:57:16If this property were to be rented out, I'd be expecting to achieve
0:57:16 > 0:57:19a figure in the region of £525 per calendar month.
0:57:19 > 0:57:21In today's market, I'd expect the property to
0:57:21 > 0:57:25achieve in the region of £525 per calendar month.
0:57:25 > 0:57:29Mark has some news of his own on the rental front.
0:57:29 > 0:57:32It was going to be for sale, but it is actually...
0:57:32 > 0:57:35I got approached by a lady who wants to rent it straightaway,
0:57:35 > 0:57:37so she is moving in tomorrow.
0:57:37 > 0:57:41Despite still having some rooms to finish off, Mark has secured a rent
0:57:41 > 0:57:46of £550 per calendar month, giving him a yield of almost 8%.
0:57:46 > 0:57:47Pretty successful.
0:57:47 > 0:57:50And it sounds as if they'll be doing it again.
0:57:52 > 0:57:54Yeah, I think I'd go back to the auction again, I think.
0:57:54 > 0:57:57You do tend to get sort of slightly better price at the auction.
0:57:57 > 0:58:01And they seem to be the sort of things I've been after to renovate, really.
0:58:03 > 0:58:06Well, that's all - three properties done and dusted
0:58:06 > 0:58:08and all we have time for on today's show.
0:58:08 > 0:58:10We look forward to seeing you next time for more
0:58:10 > 0:58:12- Homes Under The Hammer. - Goodbye for now.- Bye.