Episode 76 Homes Under the Hammer


Episode 76

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Transcript


LineFromTo

-Hello, and welcome.

-Property developing is about

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so many different things. Yes, it can be about making money,

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but it's also about the satisfaction of transforming a run-down building.

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Yeah, creating a project like that then means

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it's not just about the damp course, the electrics, the lighting.

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It's more about creating a home.

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Yes, but how do you pick the property to start with?

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Well, one way could be heading to your auctions.

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The key to success is do your homework.

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Give yourself the best chance to get the property at the best price.

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And also, to plan a budget,

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to make sure you've got enough money to get the job completed.

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So, what inspired the bidders on today's programme?

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Up first, in Edinburgh, I'm encouraging a hands-on approach.

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I think she's slightly more enthusiastic than you are.

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I think you've planned it all out for me already.

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Whilst in Bromley, Kent, I'm hoping for hands-off.

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-Please don't throw it away.

-See.

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Don't put that in the skip.

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In Exeter, Devon, looks like someone is going to need a helping hand.

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-So you like a challenge?

-Uh, love a challenge.

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-Which is just as well really.

-Yeah, have you seen the place?

-Yeah.

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All these properties have been sold at auction

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

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when they went under the hammer.

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BANGS GAVEL All done.

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I'm in Scotland's capital, Edinburgh.

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A city centre with everything

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from its contrasting medieval old town

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with its narrow winding streets and stairwells,

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to the spacious and grand architecture

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of the Georgian new town.

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Granton forms part of the city's waterfront

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on the Firth of Forth,

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and this former industrial area is undergoing regeneration,

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which will hopefully mean good news for surrounding areas as well.

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Well, the property I'm here to see is in the West Pilton area.

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Now, many of the homes here were social housing

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built in the 1930s and 1950s,

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but, nowadays, many are in private ownership,

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and that's certainly the case for the one I'm here to see.

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A one-bedroom first-floor flat,

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had a guide price of £40,000 plus.

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Let's take a look.

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This estate has plenty of green space -

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terrific, given that the city centre is only two miles away,

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and there are good bus links.

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Well, whenever you're buying a flat, one of the things you want

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to consider even before you look at the flat itself

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is the communal areas.

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What are they like? How are they being, um, maintained?

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And in this instance...

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..it's not the best.

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So, my hope's not exactly stratospheric, er...

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But let's see.

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Reasonable size entrance hall there.

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Your bedroom is there.

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Separate bathroom there, which is quite nice.

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Then down this corridor, lots of storage,

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which you don't get in, hmm, every flat you visit.

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Into the main living room area.

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A reasonable amount of light coming in through the windows.

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It doesn't look to be in too bad condition.

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And there, the kitchen looking pretty good.

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What a surprise.

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It's a really nice flat!

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# Baby, what a big surprise

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# Right before my very eyes... #

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The inside certainly makes up for the entrance to this property.

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It's been well looked after and there's lots of space in here.

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But, unfortunately, this place is let down

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when we go outside again.

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Well, out the back here, and once again,

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this flat really is let down by the communal areas.

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Not only is it the stairway there,

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but this area here is like an amenity area,

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and it could be absolutely lovely,

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but, as you can see, it's in a bit of a state.

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Clean it up, though, you know, it'll make a big difference.

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One thing you can't change, though, on a positive side,

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is the flat's location.

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It's so close to Edinburgh city centre.

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Now, there are some people whose sole investment strategy

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is to invest in capital cities.

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And the capital city of Scotland, no different.

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You normally pay a big premium for properties in those places,

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and in this case, I think this flat...

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..it's a bit of a bargain.

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Remember, that guide price is £40,000.

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I'll repeat, it seems like a bit of a bargain.

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Too good to be true?

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We'll see.

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What does a local estate agent think of it?

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The positives in the flat are that it's bright and light.

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It's spacious, there's plenty of storage

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and it's got a good feel to it.

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It's a good, well-designed flat.

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Keeping that guide price of £40,000 in mind,

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what could this flat sell for after a refurbishment?

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I think, once renovated,

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on the sales market, this could achieve about £45,000.

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I reckon this feels like rental is the way to go,

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so what could it rent for?

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Once renovated, I think this property could achieve

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between £450 and £500 per calendar month.

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If you got it for anything like that £40,000,

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and spent, say, another, oh, I don't know,

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£5,000 with a basic refurbishment,

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that £500 per calendar month

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could mean a potential yield of nearly 14%.

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Definitely not to be dismissed.

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Well, after a relatively inauspicious start,

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this flat has really redeemed itself,

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and for that kind of guide price,

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I don't think you can go far wrong.

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

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Ideal buy-to-let investment.

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A first-time purchase, excellent rental potential.

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35, then, start me?

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At £35,000, do I see a bid?

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30 then. Start me somewhere, I need a bid.

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Can't sell it without one.

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30 here. At 30, I'm bid now in ones.

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31 at the back. 32? 33...?

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34? 35?

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36? 37?

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Shake of the head at 37.

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With you at £36,000.

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With you at £36,000.

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First time...

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New bidder, 36 and a half.

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37?

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37, I've got. Half?

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Shake of the head. With you at £37,000. Are we done?

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At £37,000 then.

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First time, second time at 37.

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All out. Third and final time.

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37 and a quarter, I'll take it.

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37 and a half?

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750? Shake of the head.

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With you at £37,500.

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Are we done here? To sell, ladies and gentlemen.

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We're in the room, he's getting it. At £37,500.

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First and second time. All done, all out.

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Third and final time. Are you sure?

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BANGS GAVEL To you, sir. Well done.

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A bid of £37,500 secured the one-bedroom flat

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for Jay and girlfriend Sally.

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# I'm on my way to what I want from this world... #

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I met them back at West Pilton to find out their plans.

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-Sally, Jay, great to meet you both.

-BOTH: Nice to meet you.

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Tell me why you wanted to buy the flat.

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Well, it's an investment, really.

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It's the potential to maybe increase the size of it as well,

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-or increase the bedrooms, potentially.

-Resize? How?

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Not the size so much, but the number of bedrooms perhaps.

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We're having a wee look into that and seeing what we can get done.

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What was it about this particular place

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that made you think this is the one to go for?

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It's a great price, it's a reasonable location,

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it's quite close to the centre of town

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and I think the rental possibilities here

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-are really quite good as well, so...

-Right...

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-Just ticked a lot of boxes.

-Great.

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And rental potential is something Jay knows about

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as he has several other properties in his portfolio already.

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I reckon he's got himself a good buy here,

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and more good news,

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in Scotland, properties are, generally speaking, freehold,

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so no freeholder to seek permission from.

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So, tell me what you're going to do to it.

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Well, it depends whether we can get permissions

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to increase the number of rooms.

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If that's not allowed, then it's just a general kind of freshen up,

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but if it is allowed, then it will be a two-bedroom property

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and hopefully that will increase the value

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and increase the potential again soon.

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So, you talk about asking permission to increase the number of bedrooms.

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Who do you have to ask?

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Well, it's the building warrant, so I'd have to get that all put through,

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so I'd have to get an architect in to draw everything up.

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-Why's that?

-Because the kitchen would be changing place

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and because the bathroom would be changing,

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-there has to be some building warrants to be passed.

-Right, OK.

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So that's like building regulations rather than planning permission?

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-There wouldn't be any planning permission.

-Yeah.

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In some cases, people like one big bedroom rather than two,

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but Jay isn't going to go ahead with the second bedroom

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until he's done some research

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on how that second room might add to the value.

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Jay has 12 years' experience,

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so this is easy-peasy for him.

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But Sally is new to it.

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This is not my background at all.

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My background is nursing, so...

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This is brand-new to me, I'm a complete novice.

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It's all Jay's thing really.

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-But I'm interested to see how it develops...

-Yeah.

-..as well, so...

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Have you got a bit of an interest in property, though?

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I guess so, yeah. It's just really from talking with Jay about it

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-and sharing his kind of passion for it...

-Right.

-..so...

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Are you going to get practically involved

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-with a paintbrush in hand, or...?

-I might do.

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It just depends how the budget goes.

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But I try not to do that quite so much as I did in the past, it's...

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-Why?

-Because I think other people are better at it than I am.

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But, on top of that, I just, I like to...

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-Well, you've got an apprentice here!

-Exactly, I know.

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Well, perhaps we'll get the overalls on and see what we can get done.

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-Absolutely, yes.

-You'll have some fun doing it.

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-It would be fun to do that...

-A romantic bit of painting together.

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Well, exactly, and we're not too far from here ourselves either,

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so it's quite good to, you know,

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we could just come down and get stuck in if we need to, so...

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See. I think she's slightly more enthusiastic than you are.

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I think you've planned it all out for me already.

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Well, glad to be of assistance, Jay.

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What kind of budget does he intend spending on the flat?

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If it was to be, to keep it as a one-bedroom,

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probably about 10,000 with everything that would have to get done.

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If it was going to be increased,

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then maybe sort of another 8,000-10,000 on top of that.

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And what about timescales?

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Well, hopefully within 12 weeks,

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if it was going to be kept the way it was,

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and then, on top of that, if it was going to be increased,

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then it would just depend how long it took for everything

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to come through for us to be able to start.

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And then, maybe, 16 weeks or something

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-with the building work that would have to get done.

-Right.

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-Good stuff. Well, congratulations.

-Thank you very much.

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-Good luck with it.

-Thank you very much.

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-I look forward to seeing how you get on.

-Thank you very much.

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Well, it certainly seems that Sally is more enthusiastic

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about getting hands-on with the renovation than Jay is,

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but then he's probably done a few more than she has.

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It's a good flat, how will they improve it?

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You can find out later in the show.

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Bromley, near Penge, looks like a town with an identity crisis.

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The signs tell you it's in London,

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but officially, it's in Kent.

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I'm in the Grove Park area, one mile from Bromley centre.

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There's good commuter links to London

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and lots of local amenities.

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So far, I'm happy as this is a quiet, attractive street,

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and the train station is literally a ten-minute walk away.

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Now, the property is here.

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It's a three-bed mid-terrace and it had a guide price of £225,000.

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Now, I can already see that those windows,

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well, they need replacing.

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But it does look quite grand sitting perched up there

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on that little slope, doesn't it?

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Let's head inside and see what the property's really like.

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You see, this is one of those houses

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that I knew I was going to love once inside.

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'30s houses, they're just so sociable.

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This wonderful hallway here.

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You've got two good-sized rooms.

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But look at this.

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Wow, I haven't seen one of these old phones for years!

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Listen to this noise.

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DIAL SWOOSHES

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Hello, 7938...

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Anyway, let's move on, let's look at this kitchen.

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It's a bit small, quite disappointing,

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but look at these original doors.

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You've got a big larder there.

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I mean, it's too small,

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you need to think how you're going to modernise a space like this

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and, um, this old lean-to.

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Well, this has certainly got to go.

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Look at this place.

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Time has certainly stood still in this house.

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And every time I see things like this,

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I can't help thinking about the lives of the people

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who lived here before.

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Frozen in time for some 80 years.

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# Oh, thanks for the memories

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# And strictly entre-nous

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# Darling, how are you?

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# How are all those little dreams that never did come true?

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# Awfully glad I met you

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# Cheerio and toodle-oo

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# And thank you so much. #

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This house really is full of character,

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and there's so many features in here that I would keep.

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You've got the original Bakelites, these lovely little handles.

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There's lots going on that I just love,

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including this fireplace.

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Now, it might not be to everybody's taste,

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but I absolutely love it.

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Sort of Art Deco in its style.

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If you painted this,

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and put a wonderful great big mirror cut to size

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all the way on that back wall,

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the light would flood in, it would bounce off there.

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I'd even probably keep these old original tiles.

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I just think, things like this, you should keep, you should restore,

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and certainly not chuck in the skip.

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Yes, in fact, there are several authentic fireplaces here.

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Admittedly, some more appealing than others.

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Upstairs, at the front of the house, you'll find this one.

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Even if it's not to your taste,

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I would check with the reclamation yard before just tipping it

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as it might be worth, well, quite a few pennies.

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The second bedroom has a rather individual decor

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which may be, well, a little dark for some.

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The view over the back of the house is a little brighter

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and shared by the smallest of the three bedrooms,

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which is a good size.

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But the windows, along with the rest of the house,

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look like they need some attention, as does that back garden.

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Let's take a look and see what potential it holds.

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Fight my way through this piece of tarpaulin

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to have a good old look and see what's going on out here.

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Now, at the moment, I think that's more of a lean-over than a lean-to.

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And I think, if you could possibly replace it with

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a single-storey really nice extension,

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you could then bring the kitchen out.

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It would offer so much more space,

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it would add value to this property,

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and really give it the wow factor it needs.

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Talking of more space and adding value,

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at the far end of the garden, there's a single garage,

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which could offer plenty of storage space.

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And the bonus is?

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The garage fronts onto an access road,

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but it looks like some judicious pruning is in order here.

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If you would rather use that garage for storage than a car,

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there could be an option.

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Now, I mentioned the sloped front garden earlier.

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Well, how about using THIS as a driveway,

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and creating some off-street parking?

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There are restrictions all along this street,

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and you could never guarantee that

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you could just park your car right outside your home.

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Certainly not ideal if you arrived back with the kids,

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it's late at night, you might have loads of shopping.

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Hm, got to think about that.

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It's not quite as simple as just

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tearing down this front hedge and start pouring in the concrete,

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as you will need to apply for planning permission

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from the local council before you go ahead.

0:16:410:16:44

However, the precedent has already been set along this street,

0:16:440:16:48

and I think it would immediately enhance

0:16:480:16:50

the appeal and the value of this property.

0:16:500:16:53

Remember, if you undertake to do this,

0:16:530:16:57

you have two insure that your materials

0:16:570:16:59

are all compliant with planning regulations

0:16:590:17:01

designed to protect the environment from flooding.

0:17:010:17:04

Having a drive in front of the house may not be very pretty,

0:17:040:17:08

but it is practical.

0:17:080:17:10

In investment terms, it's probably worth doing,

0:17:100:17:12

as it could add thousands to the value of the house.

0:17:120:17:15

So, that's what I think.

0:17:150:17:17

But what does the local estate agent think of this property

0:17:170:17:20

with a guide price of 225,000?

0:17:200:17:23

It's a great, well-proportioned 1930s terraced property

0:17:260:17:29

with a huge amount of potential.

0:17:290:17:31

If it was my property,

0:17:310:17:32

I would extend out to the rear with a single-storey extension,

0:17:320:17:34

and put parking at the front of the property,

0:17:340:17:36

and then I would look to put it back on the resale market.

0:17:360:17:39

Hmm, seems familiar. But what about the valuation?

0:17:390:17:41

The auction guide price is 225,000.

0:17:410:17:45

Once renovated, in the current layout,

0:17:450:17:47

I would consider the property worth £1,250-£1,300 per calendar month.

0:17:470:17:51

And for resale?

0:17:510:17:53

Once renovated, I would value this property at £325,000

0:17:530:17:56

if it's kept in the current layout.

0:17:560:17:58

If you extend out to the rear with a kitchen-diner,

0:17:580:18:00

I would say £340,000-£350,000.

0:18:000:18:04

This property DOES need modernising, but it's a decent size,

0:18:040:18:08

and there are plenty of ways you could increase its value further.

0:18:080:18:11

And do you know what?

0:18:110:18:13

It just has a really nice feel to it.

0:18:130:18:16

I like this house.

0:18:160:18:17

Let's see who else agreed and saw the potential

0:18:170:18:20

when we went to auction.

0:18:200:18:22

Lot 155. Start at 200, go up from there.

0:18:220:18:25

Must be worth that all day long.

0:18:250:18:27

200 with you.

0:18:270:18:29

205...

0:18:290:18:31

If you're here, bid for it, cos otherwise...

0:18:310:18:33

At £200,000 it seems very low.

0:18:330:18:37

200,000...

0:18:370:18:38

205, 210...?

0:18:380:18:40

After a sluggish start,

0:18:400:18:42

the lot proves very popular with the bids,

0:18:420:18:45

quickly reaching 268,000.

0:18:450:18:49

268? 269? 270? 271?

0:18:490:18:53

272? 273?

0:18:530:18:55

Have a think. 272.

0:18:570:18:58

273 elsewhere?

0:18:580:19:00

273?

0:19:020:19:03

If not, 272 sitting down.

0:19:030:19:07

Have a go, 273?

0:19:070:19:08

272. First time.

0:19:080:19:10

Second time.

0:19:100:19:12

Third and last time, if you're all done.

0:19:120:19:14

BANGS GAVEL Sold 272.

0:19:140:19:17

Sarah and her mum Lynnette look so pleased to have got

0:19:180:19:21

this '30s house for 50,000 over the guide price

0:19:210:19:25

at £272,000.

0:19:250:19:27

Now, Sarah runs an online business from her home in Catford,

0:19:270:19:31

while Lynnette is recently retired from running a care home business.

0:19:310:19:34

I met them back at the house to find out more.

0:19:340:19:37

Sarah and Lynette, lovely to meet you both today.

0:19:370:19:40

-Congratulations.

-BOTH: Thank you.

0:19:400:19:41

Now, who has bought this house, and who is it for?

0:19:410:19:44

-Mum's bought it.

-I've given the money!

0:19:440:19:46

-Your favourite.

-My favourite is her!

-It's for me.

0:19:460:19:48

That sounds like a great deal to me. You've done well there.

0:19:480:19:51

So you've bought it for yourself to live in or as an investment?

0:19:510:19:55

-To live in.

-To live in?

0:19:550:19:56

-Was that always the plan?

-No.

0:19:560:19:58

Initially, we went to auction to look at an investment property.

0:19:580:20:02

We both saw it, and thought, "Oh, that'll do nicely"

0:20:020:20:05

so we...decided to...get it for me.

0:20:050:20:08

We did a lot of research and we looked around,

0:20:080:20:10

and I think we noted one across the road, actually,

0:20:100:20:13

went for 315 last year.

0:20:130:20:15

We looked everywhere in Catford.

0:20:150:20:16

We couldn't find a house for 350.

0:20:160:20:19

So, that's why we've moved out a bit. So, um...yeah.

0:20:190:20:22

So, I think, I thought we got a bargain.

0:20:220:20:24

But there wasn't as much competition for this particular house, I think.

0:20:240:20:27

I think this is a fantastic house.

0:20:270:20:29

What I love about it is the character and the features.

0:20:290:20:32

Are you going to be true to form to its '30s character?

0:20:320:20:35

Are you going to sort of try and retain as much as you can?

0:20:350:20:38

Um, we've had a bit of a debate about the fireplaces.

0:20:380:20:41

Got to go!

0:20:410:20:43

OK, let's stop there.

0:20:430:20:44

Yes, I agree this one's got to go, here.

0:20:440:20:47

But what about that lovely one next door?

0:20:470:20:50

-Got to go!

-You don't like it?

0:20:500:20:51

-I don't like it.

-Now, do you like it?

0:20:510:20:53

50-50, I'm not sure.

0:20:530:20:54

-Please don't throw it away!

-See.

0:20:540:20:57

Don't put that in the skip.

0:20:570:20:59

Sarah and Lynette will, however, be keeping the lovely original doors.

0:20:590:21:04

They'll replace the old windows with double-glazed panes,

0:21:040:21:07

but I'm pleased to report they'll be in keeping

0:21:070:21:09

with the character of the house.

0:21:090:21:11

Are you going to improve the size of the kitchen or are you going to extend?

0:21:110:21:14

Thinking about it. Trying to maybe do a kitchen-diner possibly,

0:21:140:21:17

and possibly extend, if the budget permits.

0:21:170:21:20

You see, that is the cheaper option, just to knock these two walls

0:21:200:21:23

into one and have a kitchen-diner this way.

0:21:230:21:25

But, I mean, you've got that sort of lean-to out there

0:21:250:21:28

that's doing nothing at all.

0:21:280:21:29

No, possibly extend, possibly either extend or a conservatory.

0:21:290:21:33

It depends on the budget, how much we can...squeeze.

0:21:330:21:35

What's the budget? Have you given her all your money?

0:21:350:21:38

-Have you got anything left over?

-A little bit.

0:21:380:21:40

How much have you got left over to spend on the house?

0:21:400:21:42

30 grand, we've got to spend

0:21:420:21:44

with a conservatory or with a small extension as well.

0:21:440:21:47

-OK, so that's included in the £30,000?

-Yeah.

0:21:470:21:50

Because she's going to live here, we might go over slightly,

0:21:500:21:53

but...try not to.

0:21:530:21:54

I think it'll be great if you can get

0:21:540:21:56

-a little extension out the back there...

-Ideally.

0:21:560:21:58

Now, what's going to happen to your house in Catford?

0:21:580:22:01

Are you going to be selling that on now you've decided to live in this?

0:22:010:22:04

I need to sell it to give mum back her money!

0:22:040:22:06

-Right, so the plan didn't sort of go to plan, did it?

-No.

0:22:060:22:09

You wanted to buy this to do up to sell on and have as a buy-to-let,

0:22:090:22:13

but now you're going to keep it.

0:22:130:22:14

But you have to now sell your

0:22:140:22:16

own home you're living in to give your mum back her money.

0:22:160:22:18

-Yeah, basically, yeah.

-Yeah.

0:22:180:22:20

-How much of...

-I've given her three months to do it in as well.

0:22:200:22:23

My gosh, so she's really putting the time pressures on you.

0:22:230:22:26

-I should do it.

-She's got to do it, not should do it.

0:22:260:22:29

-We will do it, yes.

-Girls, good luck with this project.

0:22:290:22:32

I'm really excited to see what it's going to look like at the end,

0:22:320:22:34

and it's been fantastic talking to you.

0:22:340:22:37

-Well done.

-BOTH: Thank you.

0:22:370:22:38

Lovely meeting you.

0:22:380:22:39

Well, they say that home is where the heart is,

0:22:390:22:42

and how fantastic that Sarah just fell in love with this property,

0:22:420:22:46

and she can now call it her own.

0:22:460:22:48

But don't forget, she needs to sell her home in Catford

0:22:480:22:51

and pay her mum back.

0:22:510:22:53

Join me later on in the programme and you can find out if she manages

0:22:530:22:56

to complete the works within her budget

0:22:560:22:58

and if she gets rid of my favourite fireplace or not.

0:22:580:23:01

See what happens later in the programme.

0:23:010:23:04

Still to come, in Devon, time is of the essence.

0:23:050:23:09

The whole of the rear of the property...

0:23:090:23:11

..it might only have seconds left.

0:23:130:23:15

And in Bromley, Kent, a mum's work is never done.

0:23:160:23:20

Just keep her under control, you know, the budget.

0:23:200:23:23

"Oh, I must have... I want..."

0:23:230:23:25

Back to Scotland's capital Edinburgh now.

0:23:300:23:33

Earlier, I looked around a one-bedroom first-floor flat

0:23:330:23:36

that had a guide price of £40,000 plus.

0:23:360:23:40

The poor state of the outside and communal areas

0:23:410:23:44

had my alarm bells ringing,

0:23:440:23:46

but, as it happens, I shouldn't have worried.

0:23:460:23:49

Lots of storage, which you don't get in, hm, every flat you visit.

0:23:500:23:55

Into the main living room area.

0:23:550:23:57

A reasonable amount of light coming in through the windows.

0:23:570:23:59

It doesn't look to be in too bad condition.

0:23:590:24:01

And there, the kitchen looking pretty good. You know what?

0:24:010:24:04

What a surprise!

0:24:060:24:07

It's a really nice flat.

0:24:070:24:10

35 in...

0:24:100:24:12

It was snapped up on auction day

0:24:120:24:14

by property developer and local man Jay

0:24:140:24:17

for what seemed a bargain at 37,500.

0:24:170:24:21

To you, sir. Well done.

0:24:210:24:23

Along with girlfriend Sally,

0:24:230:24:25

he had some pretty big plans for this little one-bedroom flat.

0:24:250:24:28

-So, why have you bought it then?

-Well, it's an investment, really.

0:24:300:24:34

It's the potential to maybe increase the size of it as well,

0:24:340:24:36

-or increase the bedrooms potentially.

-Increase the size? How?

0:24:360:24:39

Well, not the size so much, but the number of bedrooms, perhaps.

0:24:390:24:42

We're having a wee look into it and seeing what we can get done.

0:24:420:24:44

Adding a bedroom was a great idea,

0:24:440:24:46

and would certainly increase the appeal of the property.

0:24:460:24:49

However, they would need to apply for a building warrant

0:24:490:24:53

before work started.

0:24:530:24:55

So, if they got that building warrant,

0:24:570:24:59

they had a timescale of 16 weeks

0:24:590:25:01

and a budget of 18,000-20,000.

0:25:010:25:04

But if they don't get their plans approved,

0:25:040:25:07

then it stays a one-bed with a basic refurbishment plan

0:25:070:25:10

with a 12-week timescale and a £10,000 budget.

0:25:100:25:14

It's now over a year since we last visited

0:25:200:25:23

and I can't wait to get inside and see what they've done.

0:25:230:25:26

Where once stood the bedroom next to the bathroom

0:25:380:25:41

is now a smart and spacious kitchen-diner

0:25:410:25:45

as Jay explains.

0:25:450:25:46

Yes, well, initially, what we did, we took down this wall here,

0:25:470:25:51

which is between the old bedroom and the bathroom.

0:25:510:25:53

And the door to the bathroom was just about here,

0:25:530:25:56

and the door to the bedroom was just about here.

0:25:560:25:59

So, that all came out.

0:25:590:26:00

We put a beam in and took the wall away

0:26:000:26:03

and got everything finished off.

0:26:030:26:04

And that's created a really lovely open space

0:26:040:26:06

with a living room and a kitchen.

0:26:060:26:09

The property's layout has been expertly reconfigured

0:26:100:26:14

allowing for, yes, you guessed it, two bedrooms.

0:26:140:26:17

So, this is the bedroom, the first bedroom.

0:26:260:26:28

And this used to be the kitchen that was laid out here,

0:26:280:26:31

and there used to be a wall that used to come along here

0:26:310:26:33

with access through a door.

0:26:330:26:35

We've moved that whole wall back this way

0:26:350:26:37

to give us plenty of room for the bedroom,

0:26:370:26:39

to make it a decent-sized double bedroom.

0:26:390:26:42

Back here was the original doorway into the living room,

0:26:420:26:46

and this is the second bedroom just round this way here.

0:26:460:26:49

By working closely with an architect,

0:26:500:26:52

Jay has been able to utilise every bit of floor space

0:26:520:26:56

to make a spacious two-bed apartment.

0:26:560:26:59

And one space-saving method was converting the old storage areas

0:26:590:27:04

into a shower room, and doing away with the larger bathroom.

0:27:040:27:07

However, why has all this taken over a year to complete?

0:27:140:27:18

The biggest challenge was really getting

0:27:180:27:20

the planning passed to the council.

0:27:200:27:22

It took a wee while, there was a few changes we had to make.

0:27:220:27:25

The shower room, we had to change the size of that a few times.

0:27:250:27:27

So, that was probably what took the longest.

0:27:270:27:29

But everything else went quite well, the builders were nice and quick

0:27:290:27:32

with the structural work

0:27:320:27:33

and the renovation went at a decent pace.

0:27:330:27:36

And I think it's turned out quite nice.

0:27:360:27:38

Ah-ha, waiting for permission can often involve

0:27:380:27:41

lots of patience and nerves of steel.

0:27:410:27:45

Now, one of the main difficulties

0:27:450:27:47

I thought this property might suffer from

0:27:470:27:49

was the state of the communal areas.

0:27:490:27:51

What's happened there?

0:27:510:27:54

So, when we first came to the property,

0:27:540:27:56

there was a lot of mess in the back garden.

0:27:560:27:59

Quite a lot of people were just dumping rubbish

0:27:590:28:01

and things like that.

0:28:010:28:02

So, there has been a very positive change since then, though.

0:28:020:28:05

There's been a community clean-up day several weeks ago

0:28:050:28:08

where lots of people from the community got together

0:28:080:28:11

and tried to clean up the mess in the gardens,

0:28:110:28:13

and get rid of some of the rubbish and things that had been dumped.

0:28:130:28:16

So, I mean, that's made a huge difference.

0:28:160:28:18

You can see just by looking outside that it does look a lot tidier

0:28:180:28:21

and it'll just be about maintaining that, really.

0:28:210:28:24

Sally talking like a pro there.

0:28:240:28:26

But this was actually her first renovation experience.

0:28:260:28:29

So, how did it go?

0:28:290:28:32

I would say it's been good to sort of support Jay through it.

0:28:330:28:37

There's been some times where, you know,

0:28:370:28:39

things weren't going as smoothly as he'd hoped,

0:28:390:28:41

so, from that point of view, yes, I've enjoyed it.

0:28:410:28:44

But, certainly in terms of the actual renovations,

0:28:440:28:47

I've had really no input in that at all.

0:28:470:28:49

Erm, after this, now that it's finished,

0:28:490:28:52

hoping to kind of be involved in furnishing and dressing

0:28:520:28:55

and things like that.

0:28:550:28:56

Getting it looking presentable for people coming in.

0:28:560:28:59

Jay plans to rent the property,

0:29:010:29:02

and a nicely furnished flat is always desirable.

0:29:020:29:05

So, with the extra bedroom added as planned,

0:29:070:29:10

how is the budget looking?

0:29:100:29:12

I think we're pretty much OK.

0:29:130:29:15

I think we probably spent about 19-20,000 with everything,

0:29:150:29:19

including fees and all of the costs.

0:29:190:29:21

I'll probably have to tot that up again,

0:29:210:29:24

but something round about that price.

0:29:240:29:25

So, it was within the range that I'd thought.

0:29:250:29:27

I'm not massively happy, I'm not massively upset.

0:29:270:29:30

I think we're pretty much there with the price

0:29:300:29:32

and it was what we projected.

0:29:320:29:33

So, it's taken a fraction over a year.

0:29:350:29:37

And, including purchase price,

0:29:370:29:39

Jay has invested around 57,500.

0:29:390:29:43

Will it be profitable, then?

0:29:430:29:44

We asked along two local estate agents for their opinions.

0:29:440:29:48

On first entering the property, I was very impressed.

0:29:490:29:52

It's light, airy, very fresh, and I really like the flooring.

0:29:520:29:56

I think changing the flat from a one-bedroom to a two-bedroom

0:29:560:29:59

is a good addition and a good use of space for the property.

0:29:590:30:03

All sounding very positive, then. But what about valuations?

0:30:040:30:08

I would market this property at offers around £70,000, £75,000

0:30:080:30:14

and we'd hope to achieve somewhere in that region.

0:30:140:30:16

I expect this property to achieve

0:30:160:30:18

somewhere between £70,000 and £75,000.

0:30:180:30:20

£70,000-£75,000 is exactly what we were looking for,

0:30:200:30:23

so I think we're really happy

0:30:230:30:25

with that as a final figure for the property.

0:30:250:30:27

Well, if they were to achieve that top estimate,

0:30:270:30:30

it would equate to a very impressive pre-tax profit of £17,500.

0:30:300:30:35

However, with Jay still keen on renting,

0:30:350:30:38

how will those figures stack up?

0:30:380:30:39

As a rental opportunity, I would say this flat would probably fetch

0:30:410:30:44

somewhere in the region of £650 per calendar month.

0:30:440:30:48

If this property was to be put on the market for rental,

0:30:480:30:50

I would expect it to achieve between £600 and £650 per calendar month.

0:30:500:30:54

We'll certainly have a think about that and maybe have a look at

0:30:540:30:57

remarketing it a bit higher than that, perhaps.

0:30:570:30:59

Both of them are fantastic figures. We're happy with both of them.

0:30:590:31:02

If they did get £650 per calendar month,

0:31:020:31:05

that would mean a yield of a whopping 13.5%,

0:31:050:31:09

which is hugely impressive

0:31:090:31:11

and justifies the decision to turn this property into a two-bed.

0:31:110:31:15

So, with this just the latest in a long line of renovations for Jay,

0:31:150:31:19

but the first for Sally, can she see a future in it?

0:31:190:31:24

I would like to think that I would have a bit more of a future

0:31:240:31:26

within property, especially since it's something that

0:31:260:31:29

Jay's so passionate about.

0:31:290:31:30

It's given me a taster so we'll see what the future holds.

0:31:300:31:33

I am in the beautiful South West - the city of Exeter, to be precise -

0:31:420:31:48

with, amongst other things, its magnificent cathedral.

0:31:480:31:52

Let's hope the property I'm here to see is just as impressive.

0:31:520:31:56

This lovely Roman-walled city is a delight to spend time in

0:31:560:32:00

with its eclectic mix of the ancient and the modern.

0:32:000:32:04

Little wonder, then, that this city is a real draw for tourists,

0:32:040:32:09

commuters and students.

0:32:090:32:11

Well, just a couple of minutes' drive from Exeter city centre

0:32:110:32:15

on this busy main road is the property I'm here to see.

0:32:150:32:19

It's a five-bedroom Victorian mid-terrace -

0:32:190:32:23

a really substantial property.

0:32:230:32:26

But the guide price was just £80,000-£100,000.

0:32:260:32:31

Something is not stacking up.

0:32:310:32:33

'Perhaps the junk out here is a clue.'

0:32:340:32:37

Hmm, bit of a shabby front door. Never a good start.

0:32:400:32:43

But let's focus on the layout. Straight through here.

0:32:430:32:45

Nice to have this little entry area

0:32:450:32:47

and possibly these could be stripped back,

0:32:470:32:50

so some original features.

0:32:500:32:52

Pretty standard layout for this kind of property.

0:32:520:32:54

A front living room there with a bay window, which is good.

0:32:540:32:57

Stairs up to your bedrooms. A rear living area there.

0:32:570:33:01

And then...

0:33:030:33:04

..oh, dear.

0:33:050:33:07

I think I'm going to need this.

0:33:090:33:12

Head through to that part of the property

0:33:140:33:17

and it starts to get really seriously bad.

0:33:170:33:20

I don't know what you can see from this point, but to be fair,

0:33:200:33:23

I'm not even confident enough to go through there.

0:33:230:33:27

I think that looks extremely dicey.

0:33:270:33:29

What I'm looking at is bits of wood holding up the ceiling.

0:33:290:33:32

You can see that the joists from the upstairs rooms

0:33:320:33:36

are not actually going into the wall there.

0:33:360:33:38

Just something tells me that's bad.

0:33:380:33:40

Now, this is a really important point.

0:33:400:33:42

If you are looking round auction properties before the auction,

0:33:420:33:45

some of them will be in a really bad state.

0:33:450:33:48

Now, it should be made clear to you that that is the case,

0:33:480:33:51

but to be on the safe side, you should always carry a hard hat

0:33:510:33:54

and other protective gear, such as really good shoes with you

0:33:540:33:58

when you're going to look round properties

0:33:580:34:00

which could be anywhere near kind of dangerous.

0:34:000:34:02

Cos you know what?

0:34:020:34:04

You do not want to take any risks when it comes to safety.

0:34:040:34:06

# But there's nothing wrong with a hard hat and a hammer

0:34:060:34:10

# God bless the working man. #

0:34:100:34:13

We'll keep a safe distance in this one,

0:34:130:34:15

as it looks like the load-bearing walls at the back of the property,

0:34:150:34:19

where there is a third living space, are unsound.

0:34:190:34:24

The bathroom is at the very back of the house

0:34:240:34:26

and you can get a peek at the kitchen

0:34:260:34:28

through the serving hatch from the second living room.

0:34:280:34:31

And from the outside of the property,

0:34:330:34:35

you can get a glimpse of the challenges ahead.

0:34:350:34:38

"Dare I travel upstairs?" I ask myself...

0:34:390:34:42

HE EXHALES

0:34:420:34:44

Wow. I didn't think it could get much worse...

0:34:440:34:47

..but it obviously can.

0:34:480:34:50

If you look in here...

0:34:500:34:51

Oh, my goodness me.

0:34:510:34:53

There's a massive gap in between the bricks

0:34:530:34:55

at the rear part of the house and the front part of the house.

0:34:550:34:58

It's almost like the whole of the rear of the property...

0:34:580:35:02

..well...

0:35:030:35:04

..it might only have seconds left.

0:35:060:35:07

No, joking apart, that is a serious problem.

0:35:070:35:10

Not only is it dangerous to actually see this,

0:35:100:35:12

but somebody, when they take this place on...

0:35:120:35:14

..has got a lot of work to do to put that right.

0:35:160:35:19

HE LAUGHS NERVOUSLY

0:35:190:35:21

According to the drawings,

0:35:210:35:23

there is a good-sized bedroom at the back here in the danger zone.

0:35:230:35:28

There are another three bedrooms, which, thankfully, look safe.

0:35:280:35:32

The auction catalogue does say there are five bedrooms

0:35:330:35:37

and I reckon one of the reception rooms downstairs

0:35:370:35:40

might have been used as such.

0:35:400:35:42

It would appear this house was once upon a time

0:35:420:35:45

rented out on a room-by-room basis.

0:35:450:35:49

'Time to go to the top floor and see what I can safely check out there.'

0:35:490:35:54

Well, apart from the incredibly dangerous stairs to get up here,

0:35:560:36:01

when you actually arrive up here,

0:36:010:36:02

you notice there's another small problem.

0:36:020:36:04

Just as well I wore the hat.

0:36:060:36:07

There are obviously rules and regulations

0:36:070:36:10

when it comes to attic rooms.

0:36:100:36:11

The steepness of the stairs, for a start.

0:36:110:36:13

That dreadful situation at the bottom,

0:36:130:36:15

where if you fell down those stairs,

0:36:150:36:16

you'd carry on down the main flight of stairs as well.

0:36:160:36:19

And then there needs to be a certain amount - a percentage -

0:36:190:36:23

of the room which has roof height higher than an average person.

0:36:230:36:28

This clearly has not been done

0:36:280:36:30

within building regulations approval.

0:36:300:36:33

At least you don't feel like this bit of the house

0:36:330:36:35

is going to fall down any minute.

0:36:350:36:37

And joy of joys, at least there is an en suite.

0:36:370:36:40

Ha! I wish. It really is in a terrible state.

0:36:400:36:43

I believe planning was granted to demolish the rear of this house

0:36:440:36:48

because of subsidence.

0:36:480:36:50

So, decision one - knock it down or rebuild it?

0:36:500:36:54

To answer that, my first investment

0:36:560:36:59

would be in a full structural survey.

0:36:590:37:02

This lot is scary on many levels.

0:37:020:37:04

It's hard hat time for the agent who sold it. What can he tell us?

0:37:040:37:08

Is there hope beyond the serious structural issues here?

0:37:080:37:12

Once the property has addressed the structural issues

0:37:120:37:14

and it's been refurbished,

0:37:140:37:16

you could either run this as a house with multiple occupancy,

0:37:160:37:18

which will mean that you can do room-by-room letting for students

0:37:180:37:21

or for your assured shorthold tenancies.

0:37:210:37:24

The other, of course, is just keeping it as a large family home.

0:37:240:37:27

Assuming you went for that single-house option,

0:37:270:37:30

what could this lot, guided at £80,000-£100,000,

0:37:300:37:33

be worth on the open market?

0:37:330:37:35

Once this property is refurbished to a reasonable standard

0:37:360:37:39

with the bathroom moved to the first floor

0:37:390:37:40

creating a three-bedroom home, you could put it on the market

0:37:400:37:43

for somewhere in the region of £180,000-£185,000.

0:37:430:37:45

If they actually convert the attic room,

0:37:450:37:47

that may move the price upwards slightly,

0:37:470:37:49

but it'll certainly make it more saleable.

0:37:490:37:51

The agent thinks, as a house of that size,

0:37:510:37:54

it could rent for £750-£800 per calendar month.

0:37:540:37:58

But a house with five bedrooms does offer another interesting option.

0:37:580:38:04

If the property was converted into a house with multiple occupancy,

0:38:040:38:07

then I would expect to achieve £80 per calendar week per room

0:38:070:38:10

and of course, there's five rooms

0:38:100:38:11

so, you know, that's going to be £1,600 per calendar month.

0:38:110:38:15

Well, it's a very attractive guide price

0:38:150:38:18

for a substantial house so well located close to Exeter.

0:38:180:38:24

However, I hope to goodness

0:38:240:38:27

that whoever bought it looked at it beforehand

0:38:270:38:31

because now you'll know why the guide price was so low.

0:38:310:38:36

Let's go to the auction.

0:38:360:38:38

Lot 124. So, we're down to Exeter. Two-storey.

0:38:380:38:40

It's got five beds. It's four on the first floor.

0:38:400:38:43

You've got another bedroom on the ground floor.

0:38:430:38:45

Who's going to kick us off, then? We've had lots of interest.

0:38:450:38:48

Won't go any lower than 80. Two people.

0:38:480:38:50

I'll take the left-hand person. 80. We're away.

0:38:500:38:52

I saw the gentleman there. 82? I'll take 84, sir.

0:38:520:38:55

84, he goes. 84.

0:38:550:38:57

At 84. 86.

0:38:570:39:00

Sat down. 88, he goes. At 88.

0:39:000:39:03

89. You're in, sir. Back right. New face at 89,000.

0:39:030:39:07

90 on the telephone. You saw it.

0:39:070:39:10

On the telephone, we have a bid of 90. 91, he goes.

0:39:100:39:12

The bidding started slowly, but then things began to hot up

0:39:120:39:16

between a bidder in the room and a bidder on the phone.

0:39:160:39:19

We rejoin the action at £124,000.

0:39:190:39:23

124. That telephone bidder has it. At 124, then.

0:39:230:39:26

You're out at the back left at the moment?

0:39:260:39:29

124 on the telephone for the first time.

0:39:290:39:31

You're out, sir? Back right? 124. First, second...

0:39:310:39:34

Ooh!

0:39:340:39:36

She's thinking, "What a rotter!"

0:39:370:39:39

But, yeah, 124. Straight back at you. 126.

0:39:390:39:42

Shake of the head, look at the floor - not a good sign.

0:39:420:39:44

126, you're in. On the telephone has it at 126,000.

0:39:440:39:48

For the first time at 126,000.

0:39:480:39:51

For the second - £126,000.

0:39:510:39:54

Third and final time, selling at £126,000.

0:39:540:39:57

GAVEL BANGS Congratulations.

0:39:570:39:59

That successful bidder on the other end of the phone

0:39:590:40:02

paying £126,000 was Dave.

0:40:020:40:05

He's a builder and lives with his wife Zelda in Devon.

0:40:050:40:09

I met up with him back in the safety of the front living room

0:40:090:40:12

to find out his plans for this property.

0:40:120:40:15

Dave, good to meet you.

0:40:150:40:16

-Martin, yeah.

-Congratulations.

0:40:160:40:18

Thanks very much.

0:40:180:40:19

-You were the mystery telephone bidder.

-I was, yes.

0:40:190:40:21

-How come?

-I was, at the time, working on my roof.

0:40:210:40:24

Too busy to go to the auction cos you were roofing your house?

0:40:240:40:27

That's right, yeah.

0:40:270:40:28

I presume you got off the roof while you were making the phone call?

0:40:280:40:31

-I did, yeah, yeah.

-You were on a roof.

0:40:310:40:33

Does that mean A, you're a roofer or B, an enthusiastic DIYer?

0:40:330:40:38

-I am a sort of self builder.

-Oh.

0:40:380:40:40

Been building on and off for sort of 15, 20 years.

0:40:400:40:43

We purchased an auction property last year,

0:40:430:40:46

which is a sort of total build - total rebuild, plus extension.

0:40:460:40:51

-So, you like a challenge?

-Love a challenge.

0:40:510:40:53

-Which is just as well, really.

-Yeah.

0:40:530:40:55

-Have you seen the place?

-Yeah. Yeah, it needs a bit of work.

0:40:550:40:58

-I have plenty of experience of Victorian terraces.

-Right.

0:40:580:41:01

So, the structural issues don't worry you, then?

0:41:010:41:03

Not adversely, no.

0:41:030:41:05

Um, it's amazing what you can do with a bit of brick and mortar

0:41:050:41:09

and steel and epoxy resin and timber. Yeah.

0:41:090:41:13

Blimey! Dave makes it sound easy.

0:41:130:41:16

Dave's plan is to begin building a portfolio

0:41:220:41:25

by rebuilding this house into an HMO.

0:41:250:41:28

So, where to start?

0:41:280:41:30

I think I've got to repair what has been done to it, first and foremost.

0:41:300:41:36

Um, reinstate the structural fabric of it

0:41:360:41:40

and then try and make a bit more of an open-plan

0:41:400:41:43

living/kitchen/dining area at the back there.

0:41:430:41:47

Try and gain retrospective building regs for the attic

0:41:470:41:50

and maybe just create

0:41:500:41:52

a couple of slightly bigger bedrooms upstairs with a shower room,

0:41:520:41:56

as there's already a downstairs bathroom.

0:41:560:41:59

Until Dave receives the structural surveyor's report,

0:41:590:42:02

he won't know the potential cost of repairing the damage here.

0:42:020:42:06

He set an initial budget of £30,000

0:42:060:42:09

and hopes to have the work completed in six months

0:42:090:42:12

using professional tradesmen when needed

0:42:120:42:15

and doing a lot of the work himself.

0:42:150:42:18

Been sort of doing this for about a year now.

0:42:180:42:20

-Prior to that, I was a landscape architect.

-Oh, wow.

0:42:200:42:23

And for sort of four, five years, got chartered and qualified

0:42:230:42:28

-and found that I wanted to get back into building again.

-Good.

0:42:280:42:31

-Well, listen, congratulations.

-Thanks very much.

-Good luck with it.

0:42:310:42:34

-Yeah.

-Look forward to seeing how you get on.

-Yeah, cheers, Martin.

0:42:340:42:37

Well, there you go.

0:42:390:42:41

Dave doesn't seem to be too fazed by the challenges ahead,

0:42:410:42:45

but I do wonder - are we in the same house?

0:42:450:42:48

HE LAUGHS

0:42:480:42:50

I think he might have underestimated

0:42:500:42:51

quite how much effort that is going to take to put right.

0:42:510:42:55

You can find out how he gets on...

0:42:550:42:57

..later in the show.

0:42:580:42:59

Well, that's one property done and dusted, Lucy.

0:43:020:43:05

-But what about the other two?

-Yes.

0:43:050:43:07

Did they get it done on time and for the right money? Let's find out.

0:43:070:43:11

# Remember the old days? #

0:43:140:43:18

It's time to head back to Bromley in Kent,

0:43:200:43:23

where earlier, we met Sarah and her mum Lynette,

0:43:230:43:26

who had purchased this attractive, 1930s,

0:43:260:43:29

three-bed terrace house for £272,000.

0:43:290:43:33

Once renovated, it was going to become Sarah's new home.

0:43:330:43:38

'I love this architectural period

0:43:390:43:41

'and this one had tons of interesting, original features.

0:43:410:43:45

'Some needed to go...

0:43:450:43:47

'..and some, I really wanted to stay.'

0:43:490:43:52

I just think things like this, you should keep,

0:43:520:43:54

you should restore and certainly not chuck in the skip.

0:43:540:43:58

Oh, yes!

0:43:590:44:00

I fell in love with that fireplace,

0:44:000:44:02

so I was hoping Sarah and Lynette would carry out

0:44:020:44:05

a sympathetic renovation.

0:44:050:44:06

Please don't throw it away!

0:44:080:44:10

-See?

-Don't put that in the skip.

0:44:100:44:11

Lynette, with so many years of business acumen behind her,

0:44:140:44:18

was going to act as adviser,

0:44:180:44:19

but more importantly, financier for this project.

0:44:190:44:23

-Who has bought this house and who is it for?

-Who's bought it?

0:44:240:44:28

-Mum's bought it.

-I've given the money.

-You've paid for it?

0:44:280:44:31

-I've paid for it.

-It's for me.

0:44:310:44:32

That sounds like a great deal to me! You've done well there.

0:44:320:44:36

# All you can do is step back in time... #

0:44:360:44:40

But that finance deal, along with the renovation budget of £30,000,

0:44:400:44:44

wasn't a long-term loan.

0:44:440:44:46

Mum was looking for her money back tout suite.

0:44:460:44:48

So, did Sarah keep to her side of the deal

0:44:480:44:51

and has it been payback time for mum Lynette?

0:44:510:44:54

Has the three-month deadline been met?

0:44:580:45:00

Well, nine months later, we return to this '30s house

0:45:000:45:04

to find out if Sarah has a home.

0:45:040:45:07

Well, there's no doubt about it,

0:45:160:45:18

it is nearly there with a fantastic modern kitchen.

0:45:180:45:22

And look at this. Lean-to, be gone!

0:45:220:45:26

Hello, kitchen extension!

0:45:260:45:28

Wow. The ground floor has been opened up

0:45:280:45:31

with the removal of the kitchen wall into the dining room

0:45:310:45:34

and together with that new extension,

0:45:340:45:37

has created a fantastic, open-plan space.

0:45:370:45:41

We blocked up the kitchen doorway

0:45:410:45:44

and took away this wall,

0:45:440:45:47

so we've had a through kitchen/dining room.

0:45:470:45:51

We've also added a nice sun lounge, which is really quite lovely.

0:45:510:45:55

When the sun is shining, it really lightens the whole area.

0:45:550:45:59

In terms of the kitchen, I've done the tiling. Wow!

0:45:590:46:03

Sarah chose the colours, so it looks really nice

0:46:030:46:05

and we've got the quarry tiles, which are the original.

0:46:050:46:08

We're hoping to keep those

0:46:080:46:10

if we can clean them up and get some spare ones.

0:46:100:46:13

We've got quite a bit of work to do in here still.

0:46:130:46:15

We've got to do the flooring, all the skirting boards

0:46:150:46:18

and then the last-minute touch-ups.

0:46:180:46:20

So, we're quite looking forward to getting it done

0:46:200:46:22

and getting Sarah in.

0:46:220:46:24

The windows were in a bad state

0:46:250:46:27

and have been replaced with sympathetic double glazing.

0:46:270:46:30

And what about that Deco fireplace I adored?

0:46:310:46:34

Well, I'm very sad to report it's gone,

0:46:340:46:37

but it has been replaced by a rather nice traditional fireplace.

0:46:370:46:42

We ummed and ahhed about whether to try and keep the fireplace,

0:46:420:46:44

paint the fireplace, change parts of the fireplace.

0:46:440:46:47

In the end, we decided on a new fireplace,

0:46:470:46:50

so we went for a new one.

0:46:500:46:51

-In the front room.

-In the front room, yeah.

0:46:510:46:54

Upstairs, the three bedrooms have been completely redecorated

0:46:590:47:03

and carpeted.

0:47:030:47:04

Nothing too fancy, just clean and simple.

0:47:040:47:07

A new bathroom suite completes the upstairs transformation.

0:47:090:47:13

In addition to the double glazing,

0:47:230:47:25

the house has been completely rewired

0:47:250:47:27

and a new central heating system installed.

0:47:270:47:30

But it hasn't all been plain sailing.

0:47:300:47:32

The original timescale of three months almost trebled to nine!

0:47:320:47:38

The surveyor, the architect, he was quite quick,

0:47:390:47:41

but we had toed and froed

0:47:410:47:42

-between him and the council a bit, didn't we?

-Yeah.

0:47:420:47:45

The council then had to come and check the work was done

0:47:450:47:47

when the chimneybreast and the wall was taken down.

0:47:470:47:50

So, that held us up a bit.

0:47:500:47:52

But mainly, it was the builders and waiting for them to turn up

0:47:520:47:55

-when they said they would.

-SHE LAUGHS

0:47:550:47:57

And doing what they said they were going to do.

0:47:570:47:59

Yeah, so, that took a long time.

0:47:590:48:01

Different sets of builders as well, wasn't it?

0:48:010:48:04

-Four sets of builders.

-Yeah.

0:48:040:48:06

It's not just time they've gone over.

0:48:060:48:08

The budget has climbed to £50,000

0:48:080:48:10

because of having to replace rotten floorboards

0:48:100:48:13

and that sunroom cost more than they intended.

0:48:130:48:16

This is going to be Sarah's new home,

0:48:180:48:20

so what do the agents make of it?

0:48:200:48:21

First, the estate agent who saw it originally.

0:48:210:48:25

They've made some fantastic changes to the property

0:48:250:48:28

and it's an ideal family home.

0:48:280:48:30

I particularly like the new kitchen

0:48:300:48:32

and sun lounge at the back of the house.

0:48:320:48:35

That gives the house a very spacious feel to it.

0:48:350:48:39

There's no doubt about it, it looks terrific,

0:48:400:48:42

but Sarah has gone over her budget and her total spend is now £322,000.

0:48:420:48:47

With that in mind, what could the house fetch on the open market?

0:48:470:48:52

I would suggest marketing the property at £370,000.

0:48:520:48:56

Once finished, I would suggest putting the property onto the market

0:48:560:48:59

at an asking price in the region of £360,000.

0:48:590:49:04

-Sounds about right, yeah.

-Yeah, that's about what we thought.

0:49:040:49:07

-I said about £370,000-£380,000.

-I thought £350,000-£370,000.

0:49:070:49:10

-Yeah, so, yeah, that's good.

-Yeah, about right.

0:49:100:49:14

That top valuation of £370,000 would mean a pre-tax profit of £48,000.

0:49:140:49:21

Very good indeed and to top it all,

0:49:210:49:24

Lynette was paid back a week after filming.

0:49:240:49:27

So, does the Bank of Mum have some cautionary advice?

0:49:270:49:31

Just keep her under control, you know, the budget.

0:49:320:49:35

"Oh, I must have! I want!"

0:49:350:49:38

Fireplaces that cost a fortune. "No, remember the budget!"

0:49:380:49:42

Just got to keep them in check, that's all.

0:49:420:49:45

We return to the South West now

0:49:520:49:55

and the lovely city of Exeter, where earlier,

0:49:550:49:57

I looked around this five-bedroom, Victorian mid-terrace property

0:49:570:50:01

that had a suspiciously low guide price

0:50:010:50:04

of just £80,000-£100,000.

0:50:040:50:07

And unfortunately, once I stepped inside,

0:50:070:50:11

I found out why.

0:50:110:50:12

Head through to that part of the property

0:50:160:50:20

and it starts to get really seriously bad.

0:50:200:50:22

I don't know what you can see from this point.

0:50:220:50:25

What I'm looking at is bits of wood holding up the ceiling.

0:50:250:50:28

You can see that the joists from the upstairs rooms

0:50:280:50:31

are not actually going into the wall there.

0:50:310:50:34

And it didn't get much better upstairs,

0:50:340:50:37

where more very worrying signs presented themselves.

0:50:370:50:40

There's a massive gap in between the bricks

0:50:400:50:43

at the rear part of the house and the front part of the house.

0:50:430:50:46

It's almost like the whole of the rear of the property...

0:50:460:50:49

..well...

0:50:500:50:52

..it might only have seconds left.

0:50:530:50:55

To say the least, the house was looking structurally unsound

0:50:560:50:59

and to top it off, literally,

0:50:590:51:01

a converted attic space with dubious stairs and no headroom,

0:51:010:51:05

which was clearly done outside of building regulations

0:51:050:51:08

and would have to be redone if you wanted to keep it.

0:51:080:51:12

Step up, Devon-based builder Dave, who paid £126,000 on auction day

0:51:160:51:22

and despite the state of the property,

0:51:220:51:24

he wasn't sounding too worried at all.

0:51:240:51:26

So, the structural issues don't worry you, then?

0:51:310:51:33

Not adversely, no.

0:51:330:51:35

Um, it's amazing what you can do with a bit of brick and mortar

0:51:350:51:38

and steel and epoxy resin and timber. Yeah.

0:51:380:51:42

He made it sound so easy and with that can-do attitude,

0:51:420:51:46

he planned to create a House of Multiple Occupancy or an HMO

0:51:460:51:51

and rent out the rooms individually.

0:51:510:51:54

And to do that, he'd given himself six months and a £30,000 budget.

0:51:540:51:59

26 months later, Dave is still working on the property,

0:52:030:52:08

but what a difference.

0:52:080:52:10

Dave has turned his plans, and this building, around.

0:52:180:52:22

Instead of an HMO, he has two flats.

0:52:220:52:25

The ground floor one is a one-bedroom flat

0:52:260:52:29

with a lovely bay-fronted bedroom...

0:52:290:52:31

..while the other original living spaces on the ground floor

0:52:350:52:38

now flow well from the living room to dining space to kitchen...

0:52:380:52:43

..with the bathroom still at the back of the property.

0:52:460:52:49

I think he's used the space really well,

0:52:510:52:53

but it took a lot of work to get here.

0:52:530:52:55

Um, well, this is the area of major renovation.

0:52:580:53:03

The existing opening into the kitchen,

0:53:030:53:08

over there, was about this wide.

0:53:080:53:11

All that was supporting the first floor

0:53:110:53:13

was a couple of lengths of timber.

0:53:130:53:16

So, all that came out.

0:53:160:53:18

The first floor was replaced and we've rebuilt

0:53:180:53:22

from the new underpinning all the way up to the roof.

0:53:220:53:26

In fact, Dave has worked closely with Building Control

0:53:260:53:30

to get this property safe, which has meant underpinning work.

0:53:300:53:35

He had to dig down six feet to find firm ground for the foundations.

0:53:350:53:39

The upstairs flat is no longer a danger zone.

0:53:400:53:44

It's been transformed and is now really spacious.

0:53:440:53:47

Although this has been planned as a living room,

0:53:470:53:50

it's a pretty flexible space...

0:53:500:53:52

..while the two original front bedrooms have become

0:53:530:53:57

a lovely, light and bright open-plan kitchen and dining space.

0:53:570:54:01

And what was previously a third front bedroom

0:54:050:54:08

has become a contemporary-style bathroom.

0:54:080:54:11

So, what's now at the top of these stairs,

0:54:120:54:15

which have been turned from terrifying to terrific?

0:54:150:54:17

Well, now they lead to...

0:54:170:54:19

..a great-sized, airy bedroom.

0:54:210:54:23

Dave has done a mountain of work,

0:54:270:54:29

but why did he decide to go for two flats

0:54:290:54:32

instead of his original HMO plan?

0:54:320:54:34

Talking to a few people, neighbours and other sort of letting agents,

0:54:340:54:39

I sort of decided that I'd put in permission to convert to two flats,

0:54:390:54:45

as it would add more value to the building

0:54:450:54:48

and hopefully be easier to let out.

0:54:480:54:51

I'm quite pleased with the way that the flats have come together.

0:54:510:54:55

The layout seems to work and I've got quite a lot of usable space

0:54:550:55:00

and I've just tried to make the most of the rooms, really.

0:55:000:55:04

Reconfiguration and cosmetic changes were way down the pecking order.

0:55:040:55:10

This project was always about its structural state.

0:55:100:55:14

With the underpinning, my building inspector -

0:55:140:55:17

I became quite familiar with him over a number of weeks -

0:55:170:55:22

he wanted to see every one-metre section

0:55:220:55:26

before I poured concrete in, much like sort of foundations work.

0:55:260:55:32

They're very keen to see what it's actually bearing on.

0:55:320:55:36

Um, and he gave me a lot of good advice

0:55:360:55:41

and was pretty helpful.

0:55:410:55:43

Dave has spent his £30,000 budget

0:55:430:55:45

and reckons up to £3,000 will finish it.

0:55:450:55:48

Assuming that's the case,

0:55:480:55:49

he will have invested £159,000 in total.

0:55:490:55:54

We asked two local estate agents along to have a look.

0:55:560:55:59

First, the agent who saw it in its previous dangerous state.

0:55:590:56:04

So far, the owners have done actually a pretty good job.

0:56:040:56:06

The architraves have been changed.

0:56:060:56:08

A lot of the carpentry skill seems to be quite a high standard.

0:56:080:56:10

Hopefully, it'll continue in that vein

0:56:100:56:12

and should make a really good job of them.

0:56:120:56:14

I can't fault the decisions they've made in terms of the layout.

0:56:140:56:17

They've been very clever, especially having that big extra room

0:56:170:56:20

at the very, very top.

0:56:200:56:21

It's smart. They've made use of absolutely all the space.

0:56:210:56:24

So, let's talk valuations.

0:56:240:56:27

If the ground floor flat was put on the open market,

0:56:280:56:31

you should look to achieve somewhere in the region of £110,000-£120,000.

0:56:310:56:35

You'd be looking at the ground floor apartment

0:56:350:56:37

in the current open market, £130,000.

0:56:370:56:40

Well, the ground floor flat -

0:56:400:56:44

I was thinking around £120,000, so, sort of averaged out...

0:56:440:56:48

That sounds about right.

0:56:480:56:49

And both agents valued the upper flat at around £130,000.

0:56:490:56:54

But although Dave was advised by Planning

0:56:540:56:57

that the upstairs flat couldn't be regarded as a two-bed flat,

0:56:570:57:01

the agents think they could market and sell it as such

0:57:010:57:05

with the living room becoming a bedroom.

0:57:050:57:08

So, with these two valuations of £130,000 for each flat,

0:57:080:57:14

that would mean a huge pre-tax profit of £101,000.

0:57:140:57:19

However, it's still the rental that Dave is interested in,

0:57:200:57:24

so both agents gave a top valuation

0:57:240:57:26

of £575 per calendar month for the ground floor flat.

0:57:260:57:31

And for the top floor flat, they both agreed a rental

0:57:310:57:34

of £600 per calendar month,

0:57:340:57:36

which would mean a possible yield of just under 9%.

0:57:360:57:40

So, with this tricky project behind him, would he do it again?

0:57:420:57:46

No definite plans.

0:57:470:57:48

We'll rent these out for a few months

0:57:480:57:50

and then hopefully, I'll be back in the auction room.

0:57:500:57:53

Well, that's it for today's show, but we'll have more properties

0:57:550:57:58

that were bought at auction for you next time,

0:57:580:58:01

here, on Homes Under The Hammer.

0:58:010:58:02

-From Martin and me, it's goodbye.

-Goodbye.

0:58:020:58:06

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