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