Episode 32 Homes Under the Hammer


Episode 32

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Transcript


LineFromTo

Hello and welcome to the show.

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Now, auctions offer some really good prices

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and some very interesting lots.

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Yeah, that's perhaps why they've become so popular.

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Yes, and with thousands of lots for sale every year,

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auction could be the perfect place to buy your next home.

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There's lots of tricks of the trade that property developers know.

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Yes, and I hate to break it to you, but if you're a first timer,

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there is a lot to learn.

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Whether they're old hands or newbies,

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who bought and how much did it go for? Let's find out.

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In Hastings, this two-bed flat proves to be a good place

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to stretch your legs.

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Oh, I've just got to stretch my leg.

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SHE LAUGHS

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'And there's also room to extend in this south-west London

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'terraced house.'

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You could actually have a proper extension

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and you could come as far as here.

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'And this Dudley back garden isn't so much stretched as overgrown.'

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Tidy this up and you've got yourself a fairly spectacular little plot.

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All of these properties have been sold at auction.

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

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when they went under the hammer.

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That's yours, sir.

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Like many of our Victorian seaside towns,

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Hastings is defined by its pier and pavilion.

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Sadly, over the years, the pier was increasingly neglected

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and a devastating fire in 2010 nearly caused its complete demise.

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But thanks to a multi-million-pound restoration project,

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this important piece of British seaside history will be

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saved for future generations.

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This property, a couple of miles east of Hastings, might not need

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quite as much attention as the pier, but, on first inspection,

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it certainly looks as though it might need a little bit of TLC.

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Well, it's a two-bedroom first-floor flat

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and it had a guide price of £55,000-£65,000.

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Where do I start?

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'Well, let's start with the outside.'

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What it lacks in charm, it certainly makes up for in situation.

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From the back of the building

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you can see it sits on an elevated position.

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Those windows are tantalising. Could there be views?

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So, quite a lot of stairs to climb before you even get inside the flat.

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Nice bedroom just off the landing there. There's one behind me here.

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Not in bad shape.

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The kitchen, off the hall... Not sure about this safety glass.

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We'll come back to that in a moment.

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The loo...

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nice, big window letting in loads of light,

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a great bathroom,

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nice carpet...

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and the lounge - it's in fantastic shape!

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The flooring, it looks like it's been freshly painted.

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But you can forget all that because come and have a look at this. Wow.

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The beach, the sea view.

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How jolly nice!

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Well, I had my doubts about this place

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when I first set eyes on the exterior.

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It's not such a handsome building and it looks a bit run down.

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However, inside is a completely different story.

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What do they say about judging books?

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# Can't judge a book by looking at the cover. #

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Yes, it's a little bit unusual that I'm out here in the hallway, but

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I can see through into the kitchen

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and I've been racking my brains to try

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and think what you could do to change this

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because currently there's no window letting in natural light.

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All right, you've got a bit of borrowed light from this,

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obviously, that's why that's there,

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and you've got a little wincey skylight up there

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just allowing a little bit of light to come through.

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So somebody, the previous owner or whoever,

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has housed the kitchen in here.

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Now, it's quite a generous space but I can't think what else

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we could put in this room.

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It's not as if you can knock through and go into next door because

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you've got the little bathroom before you get to the lounge.

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You've got a bedroom this side

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so I suppose the obvious place to house the kitchen is in here

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because you certainly want to make the most of that view

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in the lounge, because wow! It's fantastic.

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While you enjoy the views from the lounge, I'm going to ponder

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why such a good flat carries a guide price of 55,000-65,000.

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Hmm, my sixth sense tells me there could be a catch.

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Now, from reading the legal pack of this property, there is

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a bit of a bombshell in the form of an absentee freeholder.

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So, that means if the new owner wants to make any structural changes,

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like putting in some new windows,

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there's nobody to give legal permission.

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And there is currently nobody liable for the upkeep

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of the exterior of the building.

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There may be trouble ahead.

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# So while there's moonlight

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# And music and love and romance

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# Face the music and dance. #

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This one definitely needs the advice of a local property expert.

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An absentee freeholder is a practical problem

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for a leaseholder.

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In terms of maintaining, we have no-one to contact.

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This can be overcome by way of obtaining an indemnity policy

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or notices can be put in the local press attempting to contact

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the freeholder, and if they're still unavailable,

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the freehold can be purchased by the leaseholders.

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So, there is a solution, but that will cost both time and money.

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Does he think this property is worth it?

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I like this property a lot. It's got lots going for it.

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Superb sea views, there's no-one that would not be wowed

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when they come and see those views.

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I would value this property between £110,000-120,000.

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Wow! That's double the guide price. But what about rental values?

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I would value this property to achieve between £600-650 per calendar month.

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Well, this property certainly has potential.

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But the whole absentee freeholder issue is a can of worms

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for anyone that wants to do more than just give

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the place a little lick of paint and a freshen up.

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So, let's see who liked the challenge at the auction.

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We move to Hastings now. It's lot 220. It's two-bedroom accommodation.

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Start me, if you will, at 45,000.

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Hastings. Lovely part of the world.

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45, thank you, sir. 45, 46,

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47, 48,

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49, 50.

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51, 52,

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53, 54,

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55, 56,

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57.

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58?

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No. Your bid, in the doorway, at £57,000.

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58 anywhere else?

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First time at 57,

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second time at 57...

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58. 59,

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60, 61.

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62?

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OK, he shakes his head. Gentleman at the back, standing up, 61,000.

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62 anywhere else? First time, second time, third and final time.

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£61,000, back of the room.

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Sold at 61,000.

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With that final bid of £61,000,

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the Hasting flat was bought by Michael from London.

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Now, in his younger days, he was a professional dancer

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and even appeared on Top Of The Pops as a Womble!

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# Remember you're a Womble Remember you're a Womble

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# Remember, 'member, 'member, what a Womble, Womble, Womble you are! #

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As if he's likely to forget!

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Michael has hung up the costume

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and now earns his living as a showbiz journalist.

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We met up with him back at the flat to find out his plans.

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-Michael, congratulations, it's lovely meeting you today.

-Thank you.

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Well done. So you got this property at auction. Were you surprised?

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It was strange, actually,

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that particular day, I was interviewing famous people.

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David Gandy... There were a lot of supermodels,

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couple of film actors...

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And then there was an auction up the road,

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so I thought, "I could just pop in."

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-So I did.

-Was it quite stressful for you, bidding for this?

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No, it was quite showbizzy, actually, it was like... Yes. Yes.

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I thought, "What am I doing? What am I doing?"

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So, tell me about yourself.

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-What do you do?

-Right, now, I was a dancer.

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I went into property, I got stung in the recession,

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I came out of property, I went into showbiz journalism.

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I interview famous people - not as famous as you -

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and I do property again.

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-Do you still dance? You're an ex-dancer.

-Every now and then.

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If you see a very old man dancing on television in an advert, it's me.

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So you can still shake a leg?

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Hang on a second, Lucy.

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Oh, I've just got to stretch my leg.

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SHE LAUGHS

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-I love that!

-I feel better.

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Wow! You know what, put it there.

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I am impressed. I used to dance and I can't do that any more!

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Oh, look at that. Look at the shoulders. You stand up so straight.

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Thank you!

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# D-D-D-D-Dancing! #

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Michael's still got the big moves, but how is he on the finer detail?

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More specifically, did he read the legal pack?

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-Nearly.

-OK, so no?

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Let me ask you this question.

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What can you tell me about the absentee landlord situation

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-and are you worried about that?

-Don't panic. That's the first thing.

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An absentee landlord is not a worry if you're renting.

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But if you are selling, a purchaser will worry.

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So you can do whatever alterations you like, right, but when you come

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to sell it, a purchaser might go, "What if the landlord reappears?"

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He might be in Spain, having a wonderful time,

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he reappears, he goes, "You've turned the walls around,

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"you've knocked a door in, I'm going to charge you £10,000."

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You have no recourse, no way of coming back to him.

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So there are two things you can do. Indemnify them,

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in case he reappears.

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Or, which is what I'm doing now, plague him with letters.

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Keep sending registered letters and go downstairs, go next door,

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knock on doors, put adverts in the paper so eventually,

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five months, six months, eight months,

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you can go to the courts and say

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"I have done this, this, this and this,

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"I have tried."

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The court will decide what you put aside for the freehold.

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Michael's agility on the dance floor is more than

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matched by his grasp of the legal situation.

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I'm impressed. So, what's he planning to do in here?

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# Dance, dance, dance. #

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The bedrooms will be done exactly as is.

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They will perhaps have cupboards added.

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There will be fireplaces down here,

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there'll be like a lovely Victorian fireplace put here.

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The kitchen will be high-standard with a breakfast bar.

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It'll be a wow factor.

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The bathroom will have a shower, the bathroom will be rearranged.

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It'll be...as marble-tiled.

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The living room will have a beautiful fireplace with a mantelpiece.

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And it will have a separate toilet.

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These sound like big and expensive ideas.

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So my slight worry is, does he know who his market is?

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Who will buy it?

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Definitely going to be a London person

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because of the room with a view.

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Everything hinges around that one window. You can see the sea.

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No Londoner can see the sea.

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And Hastings is very interesting cos London has a wonderful road

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going that way and a wonderful road going that way to Brighton.

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Hastings is the awkward one.

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And now Londoners, who have made so much money from an expanding market,

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have suddenly got cash.

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They can buy boltholes, they are coming to Hastings.

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-I think the word is, "Hurry to Hastings!"

-Yeah, yeah, yes.

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They are buying up Hastings.

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So you are hoping to sell your room with a view.

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Once you've put your Michael stamp on it, how much do you think you

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could market this property for?

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I bought this for 61, I will spend 18,000-20,000,

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much higher standard than you would spend

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if you were just tarting it up. I'll put it on the market at just

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below the stamp duty which is currently, I think, 125, is it?

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It will achieve 124,900 and the only reason I know this is cos

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I've done other properties here, just under.

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So there will be a profit in this market to sell on.

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Well, Michael's done his sums

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and is ultra-confident of a profit that could exceed 40,000.

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He estimates that it could take up to four months to complete the job.

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So, any final thoughts?

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You look at a building and you think, "What would I do with it?"

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And then you go and buy it. I love ugly buildings.

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But when you add windows or maybe clapperboard outside,

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make it look like East Sussex, white walls, black clapperboard,

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-it's going to look fabulous.

-It's been lovely meeting you.

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I have smiled a lot during this interview

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and I cannot wait to see what this property looks like.

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-Lovely to meet you.

-You're the best celebrity I've ever met!

-Oh!

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So, Michael has certainly choreographed

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the development of this property with great attention to detail.

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And I can't wait to see this room with a view once he's finished.

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Join me later in the programme.

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Norbury, in south-west London, has good commuter links

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and you can buy a three-bed house for under £300,000,

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and, for London right now, that's pretty good.

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The property I'm here to see is a ten-minute walk away

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from Norbury station and all the local amenities

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in the sought-after residential area. It's a three-bed terrace house

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with a guide price of £285,000.

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Now, the first thing I've noticed is there's no off-street parking

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where there is everywhere else.

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More about that later.

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Nice generous hallway.

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And it looks like somebody's already started work taking off the wallpaper.

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Nice high ceilings, as well.

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They have got polystyrene tiles on - they would have to come down.

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Bit of a fire hazard.

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Through into the two reception rooms, which they've made into one,

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which is a nice, bright, big space here.

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You could actually take these out and put doors in

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or just have a nice, big open area to connect the two rooms.

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Now, you've got a lean-to here, conservatory.

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It looks like it needs a bit of work to it.

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And through here we have... DRUMROLL

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..the kitchen...

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I'm really disappointed with the size of the kitchen.

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You can't really call that a kitchen.

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This house is generally in good condition

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and only needs superficial things doing to it,

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but you could actually take out this conservatory and have a proper

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brick-built extension and you could come as far as here.

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Now, I've seen that they've done it over there, and over there, also,

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so why not just keep up with the Joneses and have a nice kitchen-diner

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and modernise the inside of this property?

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What I would do is I wouldn't get the same people

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to build your extension as put this up.

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# I can't stand up for falling down... #

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Yeah, not the best DIY I've ever seen, but plenty of space outside

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and there's plenty of space upstairs.

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This property has three bedrooms - all good sizes...

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A boxroom and a bathroom that both need updating.

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There's a loft, too, and I think you could extend up there.

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So, if you extend into the loft

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and make the boxroom a bedroom, you'd get a five-bedder.

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But if there's five bedrooms, that could be five residents.

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Where are they all going to park their cars?

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Well, I have a solution for you. Do as your neighbours do.

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Drop the kerb and have off-street parking at the front.

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You would have to apply for planning permission to drop that kerb,

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but it can add value of in and around £5,000

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and make this property even more saleable.

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Now, for me, it's a bit of a no-brainer.

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Two cars, you've got your shopping in the cars, straight in the house...

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Perfect.

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With a guide price of £285,000, this house is all about potential.

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Off-street parking, extending out the back or converting the loft.

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What else could add value?

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We asked a local property expert for his opinion.

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This property definitely needs central heating.

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As I walked around, there's no central heating in the property.

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Other than that, it looks fairly solid.

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A general refurbishment would do.

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This property being renovated as a three-bedroom house

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would sell for approximately the £425,000-430,000 mark.

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Taking down that rear extension... It's not that great.

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I'd say extending the back of the house out to the maximum,

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maybe three metres, would be perfect.

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If this property was extended along the ground floor,

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you could approximately resell in the region of £450,000.

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The agent believes the property could rent for £1,500 per calendar month

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in its current configuration and it probably wouldn't be worth

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converting the loft if you were planning to rent.

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But how much would a loft conversion add to the resale value?

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This property, with a loft extension,

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selling as a five-bedroom,

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would sell for approximately in the region of £500,000.

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This is a popular location and there are plenty ways

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you can improve this house which would also add value.

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Let's see who agreed when it went to auction.

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A three-bed house, a mid-terraced house...

0:18:310:18:35

Where do you wish to start? 280?

0:18:350:18:39

I'm not going to go below this. 280. Where will I kick off?

0:18:390:18:43

280 with you, sir. 280. 285 anywhere?

0:18:430:18:48

Despite Norbury being a popular area, this lot was slow to start.

0:18:480:18:53

Bidding soon picked up and we will rejoin with the price at £325,000.

0:18:530:18:58

325, 326, 327, 328,

0:19:000:19:06

329, 330, 331,

0:19:060:19:10

332, 333, 334,

0:19:100:19:15

335. Let's round off.

0:19:150:19:18

335. I've got a really good feeling he won't go over 335.

0:19:180:19:24

335? 334, with the cap.

0:19:250:19:29

First time, second time, third and last time.

0:19:290:19:33

Are we all done?

0:19:330:19:34

Sold 334. Well bid.

0:19:340:19:37

The man in the cap was Anis and he was bidding

0:19:370:19:39

on behalf of his son, Adz, who was sitting studiously beside him.

0:19:390:19:44

Adz is in a property partnership with his wife, Zahra,

0:19:460:19:48

and his friend, Nav.

0:19:480:19:50

The trio have 11 properties so far and I met Adz and Nav

0:19:510:19:54

to find out what their plans were for this one.

0:19:540:19:57

-Nav, nice to meet you. Congratulations. Adz, same to you.

-Hi.

0:19:590:20:02

Tell us first and foremost what the experience was like

0:20:020:20:05

of the auction, cos I believe you didn't go.

0:20:050:20:08

-That's right.

-No, Nav didn't go with me this time.

0:20:080:20:10

I went along and there was a gentleman who was bidding

0:20:100:20:14

against me who actually pushed the price up more than I was hoping,

0:20:140:20:18

but I still got the property at a good price. I went with my father.

0:20:180:20:22

He came along with me and I let him do all the bidding and I told him,

0:20:220:20:27

I said, "Look, do not go above this amount. That's it."

0:20:270:20:31

And luckily it went below that.

0:20:310:20:33

As professionals, Nav and Adz went in well-prepared

0:20:330:20:37

and have done all the groundwork you'd expect.

0:20:370:20:39

I go through all the legal packs and I go through it with a fine comb.

0:20:400:20:44

-DION LAUGHS

-It has to be

0:20:440:20:46

cos there are so many things in there

0:20:460:20:47

that can catch you out.

0:20:470:20:48

I get a legal solicitor to go through it, as well,

0:20:480:20:52

so they can tell me their opinion.

0:20:520:20:55

We look at the property values along this street.

0:20:550:20:59

We compare them for this property and the potential for the property,

0:20:590:21:04

-and, from that, we make our judgment.

-Yeah.

0:21:040:21:06

# You got me holding your door

0:21:060:21:10

# I can't do my homework any more... #

0:21:100:21:13

They bought this house to renovate and sell on

0:21:150:21:17

and they have a two-month timetable, but these guys are so organised,

0:21:170:21:20

they have already started.

0:21:200:21:22

The plumbing is halfway done and the wallpaper stripping has begun.

0:21:220:21:27

So, what will we see on our return?

0:21:270:21:29

'Plaster the whole property, put a new bathroom suite in,

0:21:310:21:34

'new kitchen suite, put a new extension at the back'

0:21:340:21:37

and hopefully put a drive up front, as well.

0:21:370:21:39

We've got an old extension at the back, which is not sturdy at all,

0:21:390:21:42

so we're going to get a solid extension there

0:21:420:21:45

and put the new kitchen... We're going to place that there.

0:21:450:21:48

If we can create a kitchen-diner, that's perfect...

0:21:480:21:50

-Modernise it?

-Modernise the whole thing. New lighting, new units...

0:21:500:21:55

There's no gas central heating in the property, either,

0:21:550:21:58

so it gets cold in here, so we're getting that sorted out.

0:21:580:22:00

There's going to be brand-new gas fires.

0:22:000:22:03

-You've got to keep on moving for the plasterers.

-Yeah.

0:22:030:22:07

The plasterers have their time, they've got to be in and out.

0:22:070:22:10

I've got a deadline to meet,

0:22:100:22:11

otherwise Nav will really come and go, "Why have they not come in?"

0:22:110:22:15

-Oh, he's the nagger?

-He will nag me.

0:22:150:22:18

He will nag me to get it done and you need somebody like that.

0:22:180:22:21

So, tell us, have you got an option for a loft extension?

0:22:210:22:24

Yeah, we've had a look up there. It's a very good-sized loft

0:22:240:22:27

but we're not going to go for the loft extension.

0:22:270:22:29

And what about the back garden? Do they have plans for that shed?

0:22:310:22:35

I think we're probably going to leave that till last.

0:22:350:22:38

We'll level it out, make it nice, and if we've got time...

0:22:380:22:40

Open it up, get rid of... There's a shed back there,

0:22:400:22:43

-which is like the Leaning Tower of Pisa.

-Yes!

0:22:430:22:45

-We've got to get rid of that.

-Come on. Bring it back to life.

0:22:450:22:48

We'll probably end up putting another shed at the back

0:22:480:22:50

so there's more storage or it will be more open.

0:22:500:22:54

There's some hedges there we don't like. It's ruining the light work.

0:22:540:22:57

We want more light coming into the property.

0:22:570:23:00

-So, tell us about the budget.

-Ooh...

0:23:000:23:02

-What you're hoping your budget to be.

-OK.

0:23:020:23:04

We always have a budget that we start with

0:23:040:23:06

and then we try and work below that budget,

0:23:060:23:09

so we are allowed 35-40 that we're going to spend on here.

0:23:090:23:14

But we want to go below that, and below that...

0:23:140:23:18

It could be 30, 35, 25.

0:23:180:23:20

-You keep going down.

-No, that's for me to... That's where we win.

0:23:210:23:26

That's where we try and say, "Look, that's what we budgeted.

0:23:260:23:29

"If we can reduce that, we're better off."

0:23:290:23:32

Bit of a fluid budget, then.

0:23:330:23:35

I think they'll be closer to 40,000, in my experience.

0:23:350:23:38

Extensions always cost more than you plan for.

0:23:380:23:42

And what about this dynamic duo? What's their story?

0:23:420:23:46

-We've known each other since secondary school.

-Yeah.

0:23:460:23:48

We've been friends ever since.

0:23:480:23:50

We've moved on to our own things before that

0:23:500:23:53

and then slowly we got together

0:23:530:23:55

and we decided, why don't we do a few properties together?

0:23:550:23:57

-We work pretty well together, I think.

-Yeah, it's pretty good.

0:23:570:24:00

It's a good relationship. We both trust each other,

0:24:000:24:03

we know how we think, so it's good.

0:24:030:24:05

Nav seems like a cool, calm and collected customer.

0:24:060:24:09

I'm sure his background in raising finance for business acquisitions

0:24:090:24:12

makes him an ideal business partner.

0:24:120:24:15

And it turns out Adz has also got something to bring to the party.

0:24:150:24:19

I restore classic cars.

0:24:190:24:21

I've done about eight of them, so far.

0:24:210:24:24

I've got a few at the moment that I'm doing,

0:24:250:24:27

which is almost like properties.

0:24:270:24:28

Things that have been run down, haven't been looked after,

0:24:280:24:31

-and then you restore them. I like it. It's good.

-No cars for you?

0:24:310:24:34

Cars, I don't really like them. His cars are great.

0:24:340:24:39

Me and cars don't get on. There's just too much travelling in London.

0:24:390:24:42

London transport, for me.

0:24:420:24:44

It's going to be a success, I know it is.

0:24:440:24:46

-Nav, Good luck.

-Thank you.

-Good luck, Adz.

-Thank you.

-Well done.

0:24:460:24:49

Adz and Nav, two very experienced guys who know what they're doing

0:24:500:24:54

and know how to achieve it.

0:24:540:24:55

And they did their research. Take note.

0:24:550:24:58

But will they stay within that budget of 40,000 or will it be 30,000?

0:24:580:25:02

You can find out later on in the programme.

0:25:020:25:04

'Still to come, things are going slightly downhill

0:25:050:25:08

'at this Dudley semidetached...'

0:25:080:25:11

The floor seems to be a little bit angled that way.

0:25:110:25:14

'And have Adz and Nav managed to keep their budget on a level?'

0:25:170:25:20

We could spend more if we really wanted to,

0:25:200:25:23

but then there's always a limit.

0:25:230:25:25

It's time to return to Hastings on the East Sussex coast,

0:25:290:25:33

where, earlier, I viewed this two-bedroom flat.

0:25:330:25:36

A bit run down on the outside, but inside, full of potential.

0:25:380:25:42

But its biggest asset was in the living room.

0:25:420:25:45

Come and have a look at this. Wow!

0:25:460:25:49

The beach! The sea view! How jolly nice.

0:25:490:25:54

Keen to invest in some seaside property

0:25:550:25:58

-was the shy and retiring Michael.

-SHE CHUCKLES

0:25:580:26:01

Former dancer, one-time Womble,

0:26:030:26:06

and currently an entertainment journalist,

0:26:060:26:09

Michael paid £61,000 at auction and believed

0:26:090:26:12

that the success of this venture rested on only one thing.

0:26:120:26:16

Everything hinges round that one window. You can see the sea.

0:26:160:26:20

The view would take care of itself, but how would Michael solve

0:26:220:26:25

the problem of the property's absentee freeholder?

0:26:250:26:29

Don't panic.

0:26:290:26:31

Plague him with letters, go downstairs, go next door,

0:26:310:26:34

knock on doors, put adverts in the paper.

0:26:340:26:37

I was impressed with Michael's knowledge, but I don't think

0:26:390:26:42

anyone I've met on the show has come as close to sweeping me off my feet.

0:26:420:26:47

# I'm in the mood for dancing... #

0:26:480:26:49

Oh, I've just got to stretch my legs.

0:26:490:26:53

I love that! Put it there, I'm impressed. I used to dance...

0:26:530:26:56

-I could twirl you.

-..and I can't do that any more.

-Oh, look at that.

0:26:560:26:59

Oh, dear. Was Michael leading me on a merry dance

0:27:020:27:04

with his fantastic property ideas?

0:27:040:27:07

Will his fancy footwork let him down?

0:27:070:27:09

Six months have passed since we last visited.

0:27:110:27:14

It's time for Michael to face the music.

0:27:140:27:16

Well, it's a ten from me.

0:27:310:27:33

Michael certainly has sprinkled lots of stardust all over the place.

0:27:330:27:37

Let's hear from the man himself.

0:27:370:27:39

This is the star of the whole enterprise. The idea was...

0:27:410:27:45

If you remember, there was that horrible safety glass here,

0:27:450:27:48

and the idea was, do something that doesn't cost too much money

0:27:480:27:51

to this kitchen. Very nice, white gloss etc, and it looks great.

0:27:510:27:56

The kitchen is now very stylish,

0:27:590:28:01

but that's nothing compared to how the bathroom has been transformed.

0:28:010:28:05

The bathroom was a bit tricky cos it was dark

0:28:060:28:08

so we put a sun chimney in so that you get light all day long.

0:28:080:28:12

We put in some nice lights, we added a shower,

0:28:120:28:15

and we found the one bath in the country that fitted that spot,

0:28:150:28:18

added a mirror, so now you can look at yourself,

0:28:180:28:21

and it's all white, and it's really nice.

0:28:210:28:25

The separate loo has also had a makeover

0:28:270:28:30

and the bedrooms have been fully decorated. Plain and simple.

0:28:300:28:34

Michael has not only made the inside white and bright,

0:28:360:28:40

he's done the same to the outside,

0:28:400:28:42

and he's added a few windows for good measure.

0:28:420:28:44

Since 2013, all new or replacement windows have had to comply

0:28:460:28:51

with energy saving regulations and that means getting them certified.

0:28:510:28:56

You can do this by registering with a Competent Person Scheme,

0:28:560:28:59

such as Fensa or Certass.

0:28:590:29:01

Find a company or go through the whole Building Regulations

0:29:030:29:06

and get it done properly cos it'll come back to bite you!

0:29:060:29:09

Yes, pay attention to this man. He knows what he's talking about.

0:29:100:29:13

And how did he get on with his room with a view?

0:29:130:29:16

New fireplace, lovely fireplace, and, of course, curtains, blinds,

0:29:190:29:23

and follow me... Look at this view.

0:29:230:29:26

THIS is why you come to Hastings. It's gorgeous, isn't it?

0:29:260:29:29

It appears Michael has choreographed this project beautifully,

0:29:330:29:37

but it didn't get off to the best of starts.

0:29:370:29:40

Charlie was our stripper-outer and painter,

0:29:400:29:43

and in the first hour, young Charlie went through the floor.

0:29:430:29:48

I thought, "Ouch, that's going to hurt."

0:29:480:29:50

And, of course, Charlie had some bruises, as well.

0:29:500:29:53

# You are falling

0:29:530:29:55

# Through a hole

0:29:550:29:57

# That ain't there... #

0:29:570:29:59

Poor Charlie! But the only lasting damage was to Michael's budget,

0:29:590:30:03

which rose from £20,000 to £28,000.

0:30:030:30:07

And, as for the absentee freeholder issue, well, tenacious Michael

0:30:070:30:11

did carry out some detective work and made contact,

0:30:110:30:15

so his "don't panic" approach paid off.

0:30:150:30:18

Time to find out if Michael's top-end flat

0:30:200:30:23

will get applause from two local estate agents.

0:30:230:30:27

First, the agent who saw it before.

0:30:270:30:29

It's a great example of a refurbished flat.

0:30:290:30:32

It has a lovely modern fitted kitchen, contemporary bathroom pack,

0:30:320:30:38

some nice touches in relation to the wall lights

0:30:380:30:40

and chrome fittings throughout.

0:30:400:30:42

Every box is ticked. It looks really nice.

0:30:420:30:44

What he's done is put a really high-quality finish

0:30:440:30:47

into this apartment, with the windows, the kitchen, the flooring...

0:30:470:30:51

It's just right. Hastings is enjoying a bit of a renaissance

0:30:510:30:54

and people are coming down from Brighton and London

0:30:540:30:56

and moving around in Hastings.

0:30:560:30:58

A resounding success then, but it's all about the numbers now.

0:30:590:31:03

Michael bought this flat for £61,000

0:31:030:31:06

and has spent another 28,000 making it very high-spec.

0:31:060:31:11

How will his total £89,000 investment fare

0:31:110:31:14

in the Hastings property market?

0:31:140:31:16

The rental market is very buoyant at the moment.

0:31:180:31:21

It would let extremely quickly

0:31:210:31:23

and, in my opinion, I would value this at £700 per calendar month.

0:31:230:31:27

The rent he'd be looking for in a property like this,

0:31:270:31:30

in this current market, would be anything from

0:31:300:31:32

£675 per calendar month to £725 per calendar month.

0:31:320:31:37

I like 725. I really like 725.

0:31:370:31:40

I think 700 is probably the right price.

0:31:400:31:41

It's a two-bedroom with a view over the sea. 700.

0:31:410:31:45

£700 per calendar month would mean a return on investment

0:31:460:31:50

of almost 9.5%. So what about sales values?

0:31:500:31:54

If it came onto the market now,

0:31:540:31:56

I'd be looking to market this property at £130,000.

0:31:560:31:59

Based on current market conditions,

0:31:590:32:01

I would value this property at £125,000 - £135,000.

0:32:010:32:06

I think it's going to get 135,000

0:32:060:32:08

only because stock is very low at the moment.

0:32:080:32:10

I think 130,000 is probably the correct price.

0:32:100:32:13

I think you will get 135,000.

0:32:130:32:15

In fact, I think you might get a touch more if we have a nice summer.

0:32:150:32:19

At that top figure, Michael could make a profit of 46,000

0:32:190:32:24

before taxes and expenses. So, what will he do? Rent or sell?

0:32:240:32:30

I'd like to keep this. I'd like to rent it.

0:32:300:32:32

I'd like to borrow money from a bank and I'd have loads of properties.

0:32:320:32:36

-I'd like to...

-PHONE RINGS

0:32:360:32:38

I'll probably have to sell it cos I think that's the bank manager.

0:32:380:32:41

Excuse me, I think there's a call.

0:32:410:32:43

Bank manager.

0:32:430:32:44

I'm in the town of Dudley in the West Midlands

0:32:490:32:52

for our next property visit,

0:32:520:32:53

and, no, this isn't it. This is Dudley Castle.

0:32:530:32:56

Well, they say every Englishman's home is his castle.

0:32:580:33:01

I wonder if today's property will fit the bill.

0:33:010:33:04

Well, from the outside... Not so much of a castle,

0:33:040:33:07

but what do you expect for a guide price of just £45,000+?

0:33:070:33:11

Oh, that's nice. A lovely big entrance for you.

0:33:160:33:19

That gives a great first impression.

0:33:190:33:22

Somewhere to put your stuff, your bags or whatever it is

0:33:220:33:25

when you come in. Stairs up to the bedrooms, there.

0:33:250:33:27

It has a slight air of being slightly dated.

0:33:270:33:30

Front living room... Well, yes, that fireplace...

0:33:300:33:33

definitely dates the property.

0:33:330:33:35

But, you know, it looks to be in reasonable condition.

0:33:350:33:38

Slightly disappointing... That kitchen, there.

0:33:380:33:41

Wow, that is pretty tiny for what could be a lovely family home,

0:33:410:33:45

so you'd definitely want to spend some time trying to figure out

0:33:450:33:48

how best to enhance that.

0:33:480:33:50

Then through to your rear living room.

0:33:500:33:53

So, straightaway, I'm thinking, "Can you knock that wall down?"

0:33:530:33:56

Maybe make it a lovely open-plan kitchen and living area.

0:33:560:33:59

And then this room here... Oh...

0:33:590:34:02

This room here. That's really weird.

0:34:020:34:05

The floor seems to be a little bit angled that way.

0:34:050:34:11

Oh, dear.

0:34:110:34:13

Ooh. Yeah, no.

0:34:140:34:17

If that makes sense. It doesn't get any better at all.

0:34:170:34:21

In fact, step out here and it gets worse.

0:34:210:34:25

This is an interesting little addition to the property.

0:34:250:34:28

It's almost like a sunroom. It's a very useful space.

0:34:280:34:30

You've got a downstairs loo, you've got a storage area.

0:34:300:34:33

It's been covered with this plastic so it's nice and light and airy

0:34:330:34:36

and views out to the garden, and all that stuff.

0:34:360:34:39

So, I like it, but really, again...

0:34:390:34:42

Out here, even more amplified that feeling

0:34:420:34:45

that this corner of the property is really sinking

0:34:450:34:48

and, as you can see by that door,

0:34:480:34:50

there are some serious issues which need to be addressed.

0:34:500:34:53

I'm not liking what I'm seeing there.

0:34:530:34:55

# Here comes that sinking feeling... #

0:34:550:34:59

It does definitely look like there has been some subsidence here,

0:34:590:35:04

but hopefully it's historical because I like this house.

0:35:040:35:08

Upstairs, there are three bedrooms and a bathroom,

0:35:080:35:10

and I do like an upstairs bathroom, as you know.

0:35:100:35:14

And outside there's a nice surprise.

0:35:140:35:17

'Can you hear the call of the wild?' Ooh-ooh, ah-ah-ah!

0:35:170:35:23

OK, excuse the slightly cheesy bit of jungle sound effects there,

0:35:250:35:29

but the garden is quite extraordinary!

0:35:290:35:34

Not only is it very, very steeply inclined, it's huge.

0:35:340:35:40

But there are some amazing bushes here.

0:35:400:35:43

Tidy this up and you've got yourself a fairly spectacular little plot.

0:35:430:35:48

# It's a jungle out there

0:35:480:35:50

# It's a jungle out there... #

0:35:500:35:53

It certainly is a bit overgrown out here, but take my word for it,

0:35:540:35:58

it is huge.

0:35:580:36:00

Fighting his way through the urban jungle is a local property expert

0:36:000:36:04

who can give us his opinion on this property, guided at £45,000.

0:36:040:36:09

First impressions of the house are quite nice.

0:36:100:36:13

It doesn't need a tremendous amount of work doing to it,

0:36:130:36:16

although there are some signs of movement to it.

0:36:160:36:20

I would say that the majority of work to the house

0:36:200:36:24

is mainly the decorative nature.

0:36:240:36:26

The only proviso would be providing that any of the movement

0:36:260:36:30

that I've noticed to it doesn't require any serious structural work.

0:36:300:36:35

I would imagine that you would spend something in the region of

0:36:350:36:38

£10,000 on the inside,

0:36:380:36:41

and you'd probably get most of the garden done, as well, with that.

0:36:410:36:46

So, fingers crossed on that subsidence issue.

0:36:460:36:48

But what about values?

0:36:480:36:50

Subject to there not being too much structural work needed

0:36:520:36:55

from the movement I've seen, I would envisage the property

0:36:550:36:59

realising in the region of £110,000-115,000.

0:36:590:37:03

I would anticipate letting it for

0:37:040:37:06

in the region of about £550 per calendar month.

0:37:060:37:09

Well, it's a great house that would make a lovely family home,

0:37:110:37:13

but I suppose the potential problems

0:37:130:37:15

are with that subsidence at the back.

0:37:150:37:18

It could be one of the reasons for the low guide price.

0:37:180:37:20

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

0:37:200:37:23

This next lot is a three-bedroomed freehold semidetached house.

0:37:240:37:30

Where shall we start, folks?

0:37:300:37:32

40. Thank you, sir, at 40,000 I'm bid.

0:37:320:37:34

40,000 I have. Is there 50?

0:37:340:37:37

50 out on my right. Thank you, sir. At 50.

0:37:370:37:40

Is there 55, sir?

0:37:400:37:42

55. Thank you, sir. 55. And 60?

0:37:420:37:45

New bid at 60. I've got him in the back first there. 65, sir?

0:37:460:37:51

65. 70, sir? 70. 75 anywhere?

0:37:510:37:54

Number 927, at 70,000 I'm bid. Are we all done?

0:37:560:38:00

On sale, then, at £70,000.

0:38:000:38:04

At £70,000 once, twice, third and last time...

0:38:040:38:09

That's yours, sir. Congratulations.

0:38:090:38:11

These successful bidders were Tina and Keith from Surrey.

0:38:130:38:16

Keith is a semi-retired window cleaner

0:38:170:38:20

and Tina describes herself as a lady of leisure.

0:38:200:38:23

Together, they got out on the highway - well, the M40 -

0:38:240:38:28

and found an adventure in the shape of this Dudley three-bed semi.

0:38:280:38:32

-Keith, Tina, good to meet you both.

-And you.

0:38:330:38:36

It strikes me as quite a lot of house for the money.

0:38:360:38:39

I know there are a few issues, which we'll come on to in a minute but...

0:38:390:38:42

No, I think it was good value.

0:38:420:38:43

After the research that I did on the internet as well to find out

0:38:430:38:46

what the prices were round here, I was pleased with what it went for.

0:38:460:38:50

What did you find out?

0:38:500:38:51

Well, next door has recently sold and that went for 120, I believe.

0:38:510:38:58

-Right.

-And this had previously been up for sale at 85,

0:38:580:39:02

and we found out how much the previous owner bought it for...

0:39:020:39:06

-Which was?

-Was it 55 or 50?

0:39:060:39:09

50, 55 he paid and that went straight into the auctions.

0:39:090:39:12

So your research showed you that somebody bought it

0:39:120:39:14

-and put it straight back in the auction?

-Yeah.

0:39:140:39:17

Did that set off any alarm bells?

0:39:170:39:19

Well, it did at first, cos, on the actual day,

0:39:190:39:21

-we weren't too sure because he hadn't registered it...

-Oh.

0:39:210:39:25

..but I managed to speak to the solicitors about 20 minutes before

0:39:250:39:28

-the auction...

-Wow.

-..and he told us that it was a delay on his part

0:39:280:39:32

-and that they were doing it and it should be done by Friday.

-Wow.

0:39:320:39:36

All a bit scary bananas stuff, though.

0:39:360:39:38

Yeah, then everybody else started bidding on it so I assumed it was OK.

0:39:380:39:43

That's a big assumption to make, and, for me,

0:39:470:39:50

alarm bells would have been ringing.

0:39:500:39:52

First, there's the possibility that the house might have been put

0:39:520:39:56

straight back to auction

0:39:560:39:58

because there was a real problem with it,

0:39:580:40:00

and second, by law,

0:40:000:40:02

ownership of any property has to be recorded in the land register.

0:40:020:40:06

This provides proof of ownership and helps prevent fraud.

0:40:060:40:09

Buying an unregistered property is risky.

0:40:090:40:12

So, tell me about you two. Is this something you do all the time?

0:40:130:40:16

We've got a couple of properties we rent out already

0:40:160:40:19

at the moment. We've been doing it for about ten years now,

0:40:190:40:22

but this is the first one we've seen that we've wanted to buy and do it up

0:40:220:40:26

-because of your show, seeing the show.

-Really? Oh, good.

0:40:260:40:29

-Yeah, we thought, "We could try that."

-Oh, great.

0:40:290:40:32

Tina and Keith plan to do all the work themselves

0:40:320:40:35

and I would normally be a bit sceptical about this

0:40:350:40:38

since they face a daily two-hour commute from Surrey

0:40:380:40:42

but they have a secret weapon.

0:40:420:40:44

# Get your motor running

0:40:440:40:47

# Head out on the highway... #

0:40:470:40:50

-Well, we've got the motorhome, so...

-Ah, that is a good idea.

-Yes.

0:40:500:40:54

So you can park that on the drive and escape to that in the evenings

0:40:540:40:57

-and create as much dust and havoc in here as you like.

-Yeah.

-Yes.

0:40:570:41:00

Let's talk through then what you're planning to do with the property.

0:41:000:41:03

Generally, it's painting and decorating throughout.

0:41:030:41:06

Yeah, the bathroom is partly good, isn't it? It needs a new bath.

0:41:060:41:09

The sink and toilet, they look like they've been renewed recently.

0:41:090:41:12

The kitchen needs doing up a bit.

0:41:120:41:14

We discussed whether to extend it, but that depends

0:41:140:41:17

whether we sell or whether we rent.

0:41:170:41:19

I think if we rent, we leave it as it is.

0:41:190:41:21

-If we sold it, we'd probably knock through.

-To..?

0:41:210:41:24

The toilet area, and it looks like next door have done that,

0:41:240:41:28

and it does not make a substantial kitchen compared to the small square

0:41:280:41:32

that's there at the moment.

0:41:320:41:33

Yes. If you extended the rear of the property out

0:41:330:41:36

-and encompassed that with a proper roof...

-Yeah.

-Yeah.

0:41:360:41:38

It's already quite substantially built out there. It is a solid wall.

0:41:380:41:42

But that could be maybe a couple of years down the line

0:41:420:41:45

if we decide to rent.

0:41:450:41:46

We really need to discuss what we want to do with it.

0:41:460:41:49

-We haven't decided fully, have we?

-No, not yet.

0:41:490:41:51

And what will you be doing, Tina?

0:41:510:41:54

Well, hopefully I'll get in the garden if the weather's good.

0:41:540:41:56

That's the bit I love the most, but I'm going to get in there

0:41:560:41:59

and probably take a lot of it out so you can actually get a view.

0:41:590:42:02

There is a beautiful view out there, which you can't see.

0:42:020:42:05

Find out what's living down the bottom there in that big hole,

0:42:050:42:08

-and just really tidy it up.

-Yeah.

-Nothing too fancy.

0:42:080:42:11

Let's face it, anything would be an improvement on this jungle,

0:42:130:42:16

but it's not that sloping garden I'm worried about.

0:42:160:42:19

Now, let's come on to talk about the potential problemette

0:42:210:42:23

of the downward slopey bit.

0:42:230:42:26

I'm hoping it's just a subsidence on the floor joists,

0:42:260:42:30

but it might be a bit more than that.

0:42:300:42:32

But we think it's a concrete floor, don't we? It's solid.

0:42:330:42:36

Yeah, I think it is a concrete floor, actually.

0:42:360:42:38

-That throws your theory out the window, then.

-Yeah, it does.

0:42:380:42:42

Seeing as it's falling into next door...

0:42:420:42:46

-they must be falling into us.

-Do you get on well with the neighbours?

0:42:460:42:49

We shall find out!

0:42:490:42:51

Well, we've only seen the property for the first time today.

0:42:510:42:53

-What do you mean...?

-Well, we saw it from the outside. We never saw the inside.

0:42:530:42:57

-You didn't see the inside?

-Other than on photographs.

-Oh, great. Well, they never lie(!)

0:42:570:43:01

-We read the legal pack.

-Good.

-We did listen to part of what you said.

0:43:020:43:06

Good, good, good.

0:43:060:43:08

Well, they read the legal pack and that's the good bit,

0:43:080:43:11

but buying without seeing? Tut, tut.

0:43:110:43:13

On Homes Under the Hammer,

0:43:130:43:15

we three will always nag you to view beforehand. Do not buy blind.

0:43:150:43:20

Tina and Keith plan to have the work completed in four months.

0:43:200:43:24

-So, what's their budget?

-I think roughly about 15,000.

0:43:240:43:28

Is that allowing for doing a bit of work on the slopey floor bit?

0:43:280:43:31

I think on floor side of it,

0:43:310:43:33

I wouldn't fork much more than about 4,000 to underpin it, really.

0:43:330:43:36

Well, listen, congratulations. Good luck with it.

0:43:360:43:38

-Thank you very much.

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

0:43:380:43:41

Thank you.

0:43:410:43:42

Hm...

0:43:420:43:44

Well, had Tina and Keith visited the property inside

0:43:440:43:47

before they bought it, they might have contemplated that subsidence

0:43:470:43:52

a bit more, and my fear is that it might take more than they anticipate

0:43:520:43:57

to sort it out,

0:43:570:43:58

but it's still a lot of property for what they paid,

0:43:580:44:01

and when it's finished, it will be a lovely house.

0:44:010:44:05

How will they get on getting to that point?

0:44:050:44:07

You can find out later in the show.

0:44:070:44:10

Now, we've caught up with one of our buyers.

0:44:130:44:15

-Let's see what the others have been up to.

-Yes.

0:44:150:44:17

Did everything go to plan? Cos...that doesn't often happen.

0:44:170:44:20

No, it doesn't. Could it mean there were some last-minute changes?

0:44:200:44:23

Just seven miles south of central London

0:44:270:44:29

in the London Borough of Croydon lies the town of Norbury.

0:44:290:44:32

And it was here, among the tree-lined streets, that we found

0:44:340:44:37

this three-bed terraced property that certainly seemed

0:44:370:44:41

a little worse for wear.

0:44:410:44:42

If this house had a school report, it would have said, "Could do better."

0:44:440:44:48

But it was this opportunity to improve it

0:44:510:44:53

and potentially increase its value,

0:44:530:44:54

that prompted business partners Adz, his wife Zahra,

0:44:540:44:58

and old school friend Nav to buy it for £334,000,

0:44:580:45:03

and they were planning a comprehensive refurbishment for this,

0:45:030:45:06

their 11th property together.

0:45:060:45:08

Plaster the whole property, put a new bathroom suite in,

0:45:110:45:14

new kitchen suite, put a new extension at the back

0:45:140:45:17

and hopefully put a drive up front, as well.

0:45:170:45:19

There's no gas central heating in the property, either,

0:45:190:45:22

so it gets cold in here, so we're getting that sorted out.

0:45:220:45:25

There's going to be brand-new boilers and central heating in here.

0:45:250:45:29

And the plan was to renovate it and move it on as quickly as they could.

0:45:290:45:33

You've got to keep on moving for the plasterers.

0:45:330:45:37

The plasterers have their time. They've got to be in and out.

0:45:370:45:39

I've got a deadline to meet, otherwise Nav will really

0:45:390:45:43

-come out and go, "Why have they not come in?"

-Oh, he's the nagger?

0:45:430:45:46

He will nag me, and you need somebody like that.

0:45:460:45:49

-# Get on up

-Keep on moving

0:45:490:45:51

# Keep on moving... #

0:45:510:45:53

So, with Nav cracking the whip, it was going to be down to Adz

0:45:530:45:56

to project manage and to make sure it was not only done

0:45:560:45:59

on their £35,000-40,000 budget, but he kept to a timescale

0:45:590:46:03

of two to three months.

0:46:030:46:05

Well, four months on, we're back to see if that nagging did any good.

0:46:080:46:12

It certainly did,

0:46:320:46:34

and perhaps the most impressive change is that kitchen.

0:46:340:46:38

OK, well, this used to be just a shed, basically.

0:46:380:46:41

So, this is a brand-new extension within the permitted development.

0:46:410:46:45

There's a dining area there, kitchen area here,

0:46:450:46:47

So, it's a very practical bit of space

0:46:470:46:50

and we're pretty confident that it will add value to the property.

0:46:500:46:54

Hmm, and I think they've not just built in a new kitchen,

0:46:550:46:58

they've built in some much-needed wow factor to the house.

0:46:580:47:01

But what happened to the space that housed the old, poky kitchen?

0:47:010:47:04

This was the original kitchen.

0:47:050:47:07

As you can see, we've made it into a playroom, study room.

0:47:070:47:10

It's an extra room downstairs, essentially.

0:47:100:47:13

The addition was the new downstairs toilet.

0:47:130:47:16

We thought it would be quite beneficial to a family home.

0:47:160:47:19

As you can see, we've kept the original doors.

0:47:190:47:21

We've just stripped them all down

0:47:210:47:23

and just kept it all as original as possible.

0:47:230:47:25

Well, I think they've utilised the downstairs space to the max.

0:47:270:47:31

And upstairs?

0:47:310:47:33

Well, that's great, too.

0:47:340:47:37

I really like the master bedroom with the big bay window

0:47:370:47:40

and that old fireplace is now a centrepiece for the room.

0:47:400:47:43

And by removing the cupboards in the other double bedroom,

0:47:460:47:49

it feels much bigger and brighter...

0:47:490:47:51

..with central heating fitted throughout.

0:47:530:47:55

A new contemporary bathroom...

0:47:580:48:00

This is now a fantastic family house.

0:48:000:48:02

But what about the garden?

0:48:060:48:08

Remember that rather wobbly shed?

0:48:080:48:11

-The leaning shed had to go, so...

-I wanted to keep it.

0:48:110:48:14

No, it had to go, so we'll probably reposition the shed,

0:48:140:48:17

once we've done the garden, at the back of the garden,

0:48:170:48:20

where it rightly belongs and it won't be leaning.

0:48:200:48:23

And not only is there a shed to be placed at the bottom of the garden,

0:48:230:48:27

but the back area still needs a bit of work,

0:48:270:48:30

which they hope to do in the next few weeks.

0:48:300:48:33

The timescales have slipped slightly due to poor weather

0:48:330:48:36

and there's been a delay in getting permission to lower the kerb

0:48:360:48:39

at the front of the house.

0:48:390:48:41

Or maybe Nav didn't nag Adz enough.

0:48:410:48:44

He was always nagging me and it's always brilliant to have somebody nagging you.

0:48:450:48:49

I had my father behind me nagging me all the time, as well,

0:48:490:48:51

which was excellent.

0:48:510:48:53

I think it's good just to bounce off each other

0:48:530:48:55

and support each other through it, so, yeah.

0:48:550:48:57

-I'll continue my nagging.

-Yeah.

0:48:570:48:59

And it wasn't just Adz Nav was nagging.

0:49:000:49:03

Adz's daughter also helped out, along with their building team.

0:49:030:49:08

It might not have helped their timescale

0:49:080:49:10

but has it kept the £35,000-40,000 budget on track?

0:49:100:49:14

-33,500 is what we've spent, which we're happy with.

-Yeah.

0:49:150:49:21

We could spend more if we really wanted to,

0:49:210:49:24

but then there's always a limit.

0:49:240:49:26

A £33,500 spend on top of their £334,000 purchase price

0:49:260:49:33

would take their total cost to £367,500.

0:49:330:49:38

It seems like a lot of money, but it is a lot of house.

0:49:380:49:42

So, what do two local estate agents think

0:49:420:49:44

of this comprehensive refurbishment?

0:49:440:49:46

I think the property looks great now. Before, it was very dated.

0:49:460:49:50

The property flows really nicely

0:49:500:49:52

and having the rear extension with the kitchen is perfect.

0:49:520:49:55

It's exactly what buyers want in this area.

0:49:550:49:57

It's nice and clean. It's really modern and it looks great.

0:49:570:50:00

Well, the vendor's really done a really brilliant job on this.

0:50:000:50:04

The quality of the finish is excellent.

0:50:040:50:07

You've got a nice big kitchen downstairs,

0:50:070:50:09

nice contemporary fires he's put in. No, they've gone overboard.

0:50:090:50:13

Adz and Nav plan to sell the house on,

0:50:150:50:17

but surely it would have great rental potential.

0:50:170:50:20

This property would rent

0:50:220:50:23

for approximately £1,650 per calendar month.

0:50:230:50:26

Given the level of finish,

0:50:260:50:28

we would ask for a rent of around £1,600 - £1,700 per calendar month.

0:50:280:50:32

-It's not bad, but it's not what we normally go down.

-Yeah.

0:50:340:50:37

We don't like... Well, we do do the rentals,

0:50:370:50:40

but not on this project.

0:50:400:50:41

That would give them a yield of around 5%

0:50:410:50:45

on an investment of £367,500,

0:50:450:50:49

so I can see why selling might be more of an attractive option.

0:50:490:50:53

This property will sell for approximately £450,000-460,000.

0:50:540:50:59

We would market this property at £450,000.

0:50:590:51:03

-I think we would be happy with that.

-Yeah, we're happy.

0:51:030:51:08

We had a number in mind before we started the project and...

0:51:080:51:11

Yeah, they've confirmed it for us, I think.

0:51:110:51:14

Well, I think they should be happy with those valuations

0:51:140:51:18

because they could see a pre-tax profit of between £82,500-92,500,

0:51:180:51:23

less costs and expenses, of course.

0:51:230:51:26

So, I'm guessing they might do more properties together.

0:51:260:51:29

We already have another project that we purchased

0:51:310:51:34

pretty much at the same time as this, which we're working on,

0:51:340:51:37

and we're looking for another project, as well.

0:51:370:51:40

So it's all go. From here, it's straight on to the next one.

0:51:400:51:44

We go back now to Dudley in the West Midlands,

0:51:490:51:52

where earlier in the show I visited this three-bed semidetached house,

0:51:520:51:56

which I felt had the potential to make a splendid family home.

0:51:560:51:59

Oh, that's nice. A lovely big entrance for you.

0:52:030:52:07

That gives a great first impression

0:52:070:52:09

Yes, it was dated and the small kitchen was out of kilter

0:52:110:52:15

with modern family living,

0:52:150:52:17

but the upstairs layout was ideal and really just needed redecorating

0:52:170:52:21

and all for that guide price of £45,000+. That's value.

0:52:210:52:27

However, things soon went slightly downhill.

0:52:270:52:31

The floor seems to be a little bit...

0:52:320:52:36

angled that way. Oh, dear.

0:52:360:52:39

The well-ordered interior of the house did nothing to prepare me

0:52:410:52:45

for the craziness outside.

0:52:450:52:47

The garden is quite extraordinary. It's huge!

0:52:480:52:53

Even Tarzan couldn't find his way through this jungle.

0:52:570:53:00

A much more straightforward navigation was made

0:53:000:53:02

by Tina and Keith, who headed up from Surrey

0:53:020:53:06

and bought this house for £70,000.

0:53:060:53:09

Isn't Dudley awfully far from home?

0:53:090:53:11

-Well, we've got the motorhome, so...

-Ah. That is a good idea.

0:53:120:53:16

So you can park that on the drive and escape to that in the evenings

0:53:160:53:19

-and create as much dust and havoc in here as you like?

-Yeah.

0:53:190:53:22

With their motorhome acting as temporary accommodation,

0:53:220:53:26

and armed with a budget of £15,000 and a three-month timescale,

0:53:260:53:30

Tina and Keith set off to make some money in Dudley.

0:53:300:53:33

We've come back six months later to find out

0:53:340:53:37

if their trip has been worthwhile.

0:53:370:53:39

The biggest improvement to the property

0:53:450:53:47

is the size of the kitchen. Knocking through to the back reception room

0:53:470:53:51

has created a great family space.

0:53:510:53:54

But, with no builder on call, it was all up to Keith and Tina.

0:53:540:53:58

It was it was an eight-foot hole, an eight-foot RSJ,

0:54:000:54:03

but what I hadn't allowed for was the angle when we lifted it up

0:54:030:54:07

so you need about eight feet, six inches, actually.

0:54:070:54:10

So we had to take some plaster out. There's me, holding it.

0:54:100:54:14

Whilst we were holding it in midair. But, yeah, we got it in.

0:54:140:54:17

With the hardest graft taken care of,

0:54:190:54:22

everywhere it was a case of wallpapering and painting,

0:54:220:54:25

and did they get to the bottom of that subsidence?

0:54:250:54:28

We weren't worried too much about the subsidence as it was historical.

0:54:310:54:34

We believe it's about 20 to 30 years old now.

0:54:340:54:37

We found we needed to just raise the floor a little bit upstairs

0:54:370:54:40

and level it off in the far corner,

0:54:400:54:42

and then downstairs, like I say, it wasn't too bad at all

0:54:420:54:45

once we'd taken the doors out and put new doors in.

0:54:450:54:48

We could level all the floor off, so we're quite pleased with it.

0:54:480:54:51

With various other commitments,

0:54:520:54:54

their original timescale of three months increased to six,

0:54:540:54:57

but there was better news on the budget.

0:54:570:55:00

The original budget was about £15,000.

0:55:020:55:05

We did most of the work ourselves, so we managed to save on that.

0:55:050:55:09

I think we came in about £5,000 on the actual build,

0:55:090:55:13

but with travel expenses, as well as having to heat and maintain

0:55:130:55:17

this property, we would add an extra 4,000.

0:55:170:55:20

So, I suppose the total spend was about £9,000.

0:55:200:55:23

The inside of the house is complete,

0:55:250:55:26

looking good and ready to go on the sales market.

0:55:260:55:29

But have they found any time to work on the back garden?

0:55:330:55:38

# Welcome to the jungle

0:55:380:55:40

# We've got fun and games... #

0:55:400:55:41

I started on the garden.

0:55:410:55:43

The weather got wet so I had to abandon it, but we have a fox

0:55:430:55:48

that likes to keep digging the garden

0:55:480:55:50

and messing up everything we do.

0:55:500:55:51

# Welcome to the jungle Welcome to the jungle... #

0:55:510:55:56

Well, maybe the fox is just trying to lend a hand, Tina.

0:55:560:55:59

Time to find out if two local estate agents think Tina and Keith

0:56:020:56:06

are bright bushy-tailed developers.

0:56:060:56:09

This is my second time in the property.

0:56:110:56:13

It was a bit rough round the edges, but now they've made

0:56:130:56:17

a very, very good job of improving it.

0:56:170:56:21

The dining room-cum-kitchen is really swish,

0:56:210:56:24

there's a nice lounge at the front for relaxing in

0:56:240:56:27

and three decent bedrooms upstairs.

0:56:270:56:29

This is my first time inside the property

0:56:290:56:31

and I'm very impressed with the work carried out.

0:56:310:56:34

The new layout is absolutely fantastic,

0:56:340:56:36

suits the modern-day living.

0:56:360:56:37

Demand in the area is fairly strong

0:56:370:56:39

so I would expect this property to sell fairly quickly.

0:56:390:56:43

And what values do these gentlemen feel are appropriate for this house,

0:56:430:56:47

starting with rental?

0:56:470:56:48

I'd expect this property to reach a rental figure

0:56:500:56:52

of £550 per calendar month.

0:56:520:56:54

If the property was to be let, it should achieve

0:56:540:56:57

in the region of £525 per calendar month.

0:56:570:57:00

£550 per calendar month would realise

0:57:020:57:05

a return on investment of just over 8%, but what about sales?

0:57:050:57:09

If the property was placed on the open market,

0:57:110:57:14

I feel it would achieve a figure in the region of £135,000.

0:57:140:57:18

I'd expect this property to achieve a sales value

0:57:180:57:21

between £120,000 and £125,000.

0:57:210:57:23

Having spent a total of £79,000,

0:57:250:57:28

a sale of 130,000 would give Keith and Tina

0:57:280:57:31

a very nice pre-tax profit of £51,000.

0:57:310:57:35

The values don't sway our opinion.

0:57:370:57:39

It's just the fact that we would like to do another property,

0:57:390:57:42

so, going forward, we would need to sell this one to do that.

0:57:420:57:45

Tina and Keith will be heading back to the auctions

0:57:450:57:48

as soon as this house has sold,

0:57:480:57:50

but they've learnt one important lesson.

0:57:500:57:53

Next time we buy at auction,

0:57:530:57:55

we would definitely view the inside of the property,

0:57:550:57:58

cos, from the outside, we couldn't see any problems

0:57:580:58:00

that there may have been. I think we were lucky with this one.

0:58:000:58:04

We hope you've enjoyed seeing how our buyers got on on today's show.

0:58:070:58:10

And we've got plenty more auction properties where that lot came from.

0:58:100:58:13

Yes, there will be plenty more to see next time here

0:58:130:58:15

on Homes Under The Hammer.

0:58:150:58:17

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