Episode 33 Homes Under the Hammer


Episode 33

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Transcript


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Welcome to the show.

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Have you ever thought you could earn a living investing in property?

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Yes. The risks can be high though,

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so careful planning is the key to reaping rewards.

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And a good place to start looking for your property

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is at an auction, of course.

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There can be pitfalls in property developing.

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Never let your heart rule your head.

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Yes. Stick to your guns, don't get carried away and you'll be OK.

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Let's see if today's buyers stuck to those golden rules.

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Today on the show, it might be time to phone for some help

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to sort out this house in Kent.

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I mean, why would you just put a shower in the middle of the room

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like a telephone box?

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And in Bridgend in Wales, I'm worried that these developers

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may need a bit of help.

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Tell me why you wanted to buy this place.

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I haven't got a clue. Why did we want to buy the house, Mark?

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'And in Northumberland, it looks like someone's

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'already been lending a helping hand.'

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Somebody's started working here already.

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What I've seen so far, I'm liking.

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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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Sheppey is an island in the Thames Estuary,

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just off the North Kent coast.

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Sheppey boasts incredible beaches with miles and miles

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of pebble and sand. Isn't it lovely?

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I'm just a few hundred yards from the beach

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and with this kind of remote location, well, it's hard to believe

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you are less than two hours from central London by train.

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And with such great links to the capital,

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well, perhaps we shouldn't be surprised

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with the average selling price in this postcode.

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It's been a whopping 23% increase in the last year.

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Suddenly, there seems to be an added appeal to this property

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I'm here to see. Well, here it is.

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It's a 1930s' four-bedroom detached house.

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You get a lot of house and garden for the guide price

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of £130,000 - £140,000. I'm excited.

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Well, the house certainly seems big

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but it's the garden I can't get over.

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There's a fair bit of driveway

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but so much space off to the sides, as well.

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Things really are looking promising.

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Whoa! OK. Lots going on the minute you walk into the hallway.

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We've got overhead beams, a spiral staircase of sorts...

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Rather unusual.

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Behind me, a huge sunny room, which goes into the bay window

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at the front, another room to the side, here.

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You know, I'm not sure about these. Do we like them?

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I just think they're always a bit precarious

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in the night, when the lights are off and you're trying to come down.

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I think I'm more of a traditional stair girl.

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And in here, the lounge - wow.

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I mean, this really is a cracking space.

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Fantastic for entertaining, sliding doors at the end and, of course,

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with the whole mishmash of characters in this property,

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a Gothic fireplace.

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Yes, well, I think I'd have to take a paintbrush to that

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but the space is just wonderful.

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Next door, there's a bright and sunny kitchen,

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though I'm not sure what that platform is all about.

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The property is certainly quirky

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and there are two good-sized bedrooms downstairs

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and a decent bathroom, as well.

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Time now to tackle that staircase.

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# I'm running up a spiral staircase

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# I can't reach the top

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# I'm running up a spiral staircase

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# And I'm too scared to stop... #

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So, upstairs we have two bedrooms.

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One to the front, here, which is the double

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and a rather unusual one, here, at the back.

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Be careful of the sloping ceilings of course

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because there are loads of them. Here as well.

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It's very angular, it's a bit awkward

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and you've got your beams back upstairs, as well.

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Now, through here. This is quite funny because there's the shower

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but you have to go round here to get over to the loo and the bidet,

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and here we are again. It's great, isn't it?

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I mean, why would you just put a shower there

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in the middle of the room like a telephone box?

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Now, you know when you see the outside of this house

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that the upstairs rooms are going to be, well, odd.

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But surely it must be possible to use the space better

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because there's plenty of it

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and that's matched by the outside. It just seems to go on and on.

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Hm. I like this house, I think.

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It's in decent condition and there are lots of options.

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Take a look out here.

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Now, in addition to the space at the front,

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there is quite a sizeable garden and the detached garage,

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which also belongs to the property, as well,

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you could see this garden out here as an opportunity to just

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extend and go crazy.

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You could even think about extending upwards

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and sorting out all those space problems upstairs.

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But if I was feeling in a really sledgehammer-happy kind of mood,

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you could just knock down this garage

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and completely create a decent building plot. How about that?

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It's all worth thinking about if you want to wring as much

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potential profit from this auction lot.

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This house has some fairly unusual features

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but with plenty of opportunities to sort those out,

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this could be a fantastic project.

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We asked along a local expert to take a look and see if he agreed.

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First impressions... This is quite an oddball, really.

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It could be an absolute stunning home

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and the plot is just magnificent. Absolutely.

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It could lend itself to...

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Obviously, being a fantastic family garden or potentially development.

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So, I'm not the only one to see the development opportunities,

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though that would depend on planning permission,

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so let's focus on the existing house.

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What value could this achieve?

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Once refurbished to a good standard,

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I think you'd be looking in the region of about £220,000.

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And what about the rental market?

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Once refurbished, you'd be looking in the region

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of about £900 - £950 per month.

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Come on! How could you not fall in love with this quirky property?

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Yes, it's unusual. Yes, it's a little different perhaps

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but most of all, there's a lot of potential just waiting

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to be set free and bags of space to go with it.

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Let's see who couldn't resist its charms

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when it went under the hammer.

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Where are we starting on this one? I've got a guide of 130 - 140.

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Shall we say 130, bottom of the guide? No?

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Give me 120 then. 120 can I say? 120, 120, 120, thank you.

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122? 122, I have...

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Surprisingly, the bidding was slow to start,

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but things began to pick up and we rejoin the bidding at 153,000.

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..153, he says, yes. 153, I have.

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154, 155, 156,

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157? 157, 158,

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159 now. No.

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It's with you on my right at £158,000 then.

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I shall sell for the first time, for the second time,

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third and final time. If you're quite sure and all done...

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GAVEL BANGS Sold. Thank you very much.

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Securing the property at £158,000

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was retired builder Derek and his wife, Lorna.

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I met up with Lorna back at the house.

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-Lorna, congratulations.

-Thank you, thank you.

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-Wow, this is such an unusual house.

-I know, I know.

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-Tell me what attracted you to it.

-We saw it in the auction catalogue.

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-My husband wanted to look. I didn't want to look.

-Why not?

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I thought it was a bit far out but then I said, OK, we'd come,

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and just sort of fell in love with it.

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-So, where were you based originally?

-At the moment we're in Dover.

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Prior to that, we were in France and prior to that, Spain.

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Prior to that, Lincolnshire, where we had a pub.

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Prior to Lincolnshire, Cambridgeshire, Northampton,

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-Peterborough area.

-And now Sheerness.

-And now Sheerness, yes.

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-So, why here?

-Price of property, to be honest...

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And it was the house that brought you here?

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..and a house that we liked and we could see that we could do it

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without too much blood, sweat and tears. We thought.

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You are quite relaxed about this.

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I find it intriguing the way you just pluck an area out of the blue

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and you put your little stick,

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-"That's it, we're going to live there!"

-Yeah.

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-And you're going to make this home?

-Yeah.

-For how long? You don't know anybody here, do you?

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We don't, we don't. And, funnily enough, a friend said to me the other day,

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"Are you going to stay here?"

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I said, "I can't imagine saying that about anywhere."

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Unless probably when I go in a care home, maybe...

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But at the moment, no. I think we're a bit nomadic.

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-Really?

-And like a challenge.

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-Well, you've certainly got a challenge here.

-Yes, very much so.

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# They call me the wanderer

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# Yeah, the wanderer

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# I roam around, around, around, around... #

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Lorna and Derek have certainly moved around

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but they've absolutely fallen in love with this unconventional abode.

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Could it be the one that makes them settle down?

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So, it was obviously love at first sight for you,

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but is this going to be a home that you're going to live in yourselves

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or more of a project?

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Primarily for us. We will do it with us in mind but bear in mind

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that if we need to sell it, we can't do anything too drastic.

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The kitchen, we're planning to open right up

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and have a big kitchen day room and possibly make the lounge

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into a dining area on one end because it's huge.

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I mean, it is huge.

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And then there's a bathroom downstairs

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and two bedrooms downstairs.

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Both have got a sink in, which is a bit odd

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but at least you've got water and drainage

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in different parts of the house so you're not limited

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as to where you can put things.

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So, we might change the layout of the bedrooms and the bathroom.

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And upstairs, clearly, we've got to do something with that bathroom.

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And that bedroom with all those slopey ceilings everywhere. Gosh!

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I know. You won't want to get up in the night and bang your head, no.

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I think...

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We're not sure whether we're going to reconfigure upstairs.

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We haven't decided on that one yet.

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This is Derek and Lorna's eighth property renovation

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but what about my idea of extending further?

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It's plenty big enough for us

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and I think even for a family, it's big enough.

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We are thinking of possibly applying for permission on a building plot.

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So, did you buy this house thinking you've bought a house

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-and a building plot?

-No, no.

-So, you have almost two bites of the cherry?

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Well, yes. We knew we possibly could but it doesn't matter to us

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if we get it or we don't

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cos we can carry on doing what we were going to do with this house

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because it's not going to encroach on anything

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we're planning to do here if we get it or we don't get it.

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So, Lorna, what sort of budget have you got to spend here?

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-We're thinking 40.

-OK.

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We paid 158 and we don't really want to spend any more than 200,000.

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40,000 is a healthy budget but there's a lot of work to be done.

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Derek and Lorna have also given themselves

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a relaxed 12-month timescale.

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And with Derek being a retired builder,

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they're not wasting any time in getting started.

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The plan is that we're having a bed delivered in a couple of days' time

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and we're going to camp here two or three days a week to make a start.

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-That's going to be fun.

-I know.

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And then we'll move. We'll sell our house where we are,

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put it on the market and when that sells, we'll move over.

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Lorna, I've loved meeting you today. Good luck with this project

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and I cannot wait to see how you tackle the inside of that house.

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-Thanks so much.

-Good luck!

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Lorna has fallen in love with this house

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and it seems like the perfect project for her.

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It looks like it will be a labour of love as she plans

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to put her heart and soul into making it her home.

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But will it turn out to be the place that convinces Lorna to stay put?

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Hm. You can find out how she gets on later in the programme.

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Bridgend is a busy town

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located between Cardiff and Swansea in the south of Wales.

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People have lived here since before the Romans arrived

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but it was also the scene of several battles

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as the legendary Twelve Knights of Glamorgan

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did their best to secure Wales

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for their invading Norman king William the Conqueror.

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# Everybody wants to rule the world... #

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Well, I'm on an estate of houses built in the 1950s

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to house the baby boom generation and, one thing for sure,

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they're generally solidly built, these houses.

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£72,000 was the guide price. Three-bed, mid-terrace...

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Let's take a look.

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So, what have we got? Oh, that is very '50s.

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The old glass bricks in the wall there, but actually it does

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throw quite a lot of light onto the stairway, there, which is good.

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And then a really nice-sized foyer.

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Yeah. Entrance area here just gives a good feeling to the house

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the moment you walk in. That's a bit strange.

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The downstairs loo is absolutely massive.

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Good if you need downstairs facilities like that

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but I wonder if there's something else you could potentially

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use that for if you didn't need those facilities.

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We'll have a think about that one.

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Moving further into the house, the feeling of space just continues.

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This is the main living area. You've got your front living room, there,

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a feature fireplace. I'd like to see a real fire in there for sure.

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Then, this classic design of this little dining room area at the back,

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which works well. Kitchen - down there.

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Again, a good size. It's all turned out to be a bit surprising, really.

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From the outside it looks OK but inside... Wow.

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Loads of space.

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Yes, it's bright and roomy and full of potential,

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particularly that large downstairs bathroom.

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And what's more, I don't think the rest of the downstairs

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would need a lot of money spent on it to get it up to rental standards

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if that's what the plan was. Yep, I like the look of this one.

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# Don't be afraid to call my name

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# And let me know that you're my man

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-# I like it

-I said, I like it... #

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So, upstairs and what have we got?

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Well, three really nice-sized bedrooms.

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One on that side. Looks pretty good.

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And one on that side... Also looks pretty good.

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And a slightly smaller one towards the back.

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Airing cupboard there with a boiler and a good-sized family bathroom.

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It just rounds off what is already a perfect family house.

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And it's not just perfect for families.

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It could be perfect for rental, too.

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Now, I know I always go on about keeping bathrooms upstairs

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but this bathroom could be ideal for using as another bedroom,

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maximising the rental potential.

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You would have to negotiate the boiler

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but there's space to play with.

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And there's more.

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Well, at the back of the property, a good surprise.

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Look at the size of this garden. Absolutely fantastic.

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So, it's a family house inside and it's a family house in the garden.

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Fantastic!

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It's solid, it's big, it's well proportioned

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and it has a very attractive guide price of £72,000.

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Let's see if a local estate agent likes it as much as I do.

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The property needs somebody to come in here

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and turn this back around into a good neutral blank canvas.

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It appears to be slightly damp in areas, although that may be down to

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a lack of ventilation here.

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It needs a modern bathroom and perhaps an upgrade

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to wiring and plumbing here.

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So, nothing too troublesome there, then, but is there profit in it,

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sticking with its current three-bed configuration?

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Once fully modernised, it's worth in the region of £90,000 - £95,000.

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If it was to go to the rental market,

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it's worth £550 - £575 per calendar month.

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And what if it was converted into a four-bed property?

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If the owners were to place this on the sales market

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as a four-bedroom property,

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it should be worth in the region of £115,000.

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Alternatively, if they were choosing to rent this property

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as a four-bedroom house,

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it would be worth in the region of £625 - £650 per calendar month.

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Well, it's a lot of house for the money

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and in the whole scheme of things, it doesn't need that much work

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to sort it out, does it? Yeah, a good find.

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

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A relatively modern house. Good owner occupier house. Needs some updating.

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Guided at 72. Start me in that sort of region.

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Will you start me at 70,000? Make it 60 then, if you like.

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I'm in your hands. 60,000, somebody. It's got to be 60 to start.

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Thank you. 60, I've got you, madam. At 60,000. And one now, can I see?

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61, 62, 63?

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64, 65, 66, 67?

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No. At £66,000.

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66. 67 now, anybody? We're selling all the time.

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At 66,000 on my right-hand side then for the first time,

0:17:510:17:55

second time, third and last time...

0:17:550:17:58

At £66,000... GAVEL BANGS

0:17:580:18:00

Well done, sir, madam. Madam and sir. 76...

0:18:000:18:03

Bidder Bev looks pretty surprised that she and her husband, Mark,

0:18:030:18:07

are getting the property for 66 grand after just six bids,

0:18:070:18:13

and £6,000 under the guide price.

0:18:130:18:15

Maybe six is just their lucky number.

0:18:150:18:18

The couple are no strangers to property renovation

0:18:180:18:21

and are eager to get going with this one.

0:18:210:18:23

Bev, Mark, great to meet you both. Congratulations.

0:18:290:18:33

Tell me why you wanted to buy this place.

0:18:330:18:36

It was at an auction. It was a house... I haven't got a clue.

0:18:360:18:39

-Why did we want to buy the house, Mark?

-Well, it's a good start.

0:18:390:18:42

-You don't know why you bought it?

-The price was right for a start.

-The price was right. I love that.

0:18:420:18:46

-You don't know why you're buying it. Oh, it's a house, it'll do.

-Yeah.

0:18:460:18:49

Well, obviously we're in the rental market so we are landlords.

0:18:490:18:53

So, we basically wanted to buy this for rental.

0:18:530:18:56

-Right, OK. So that's the main reason then?

-Yes.

0:18:560:18:59

Landlords... What kind of landlords are you?

0:18:590:19:01

Well, I've just actually passed an accreditation course as a landlord.

0:19:010:19:04

-Oh, right.

-In Wales, in September of next year,

0:19:040:19:07

the Housing Bill will come out, which will say that every landlord

0:19:070:19:10

needs to be registered and accredited

0:19:100:19:14

so that's something that's a necessary, mandatory thing.

0:19:140:19:16

So, at the moment it's not mandatory so I thought,

0:19:160:19:19

"I'll do it before it's an absolute need."

0:19:190:19:21

Right. What kind of things do you learn on the course?

0:19:210:19:23

A huge amount of things. All the legalities,

0:19:230:19:26

all the things like what is the best thing to do for the tenant,

0:19:260:19:29

all the different things that you deal with if there are problems.

0:19:290:19:33

All sorts, and I really learnt a lot. It was very worthwhile.

0:19:330:19:35

-Do you think it's good news that they're bringing it in?

-Absolutely.

0:19:350:19:39

There are some brilliant landlords but, occasionally, you do get

0:19:390:19:42

those bad ones and it will just hopefully sort everything out.

0:19:420:19:45

-But you've been landlords prior to this?

-Yes, yes.

0:19:450:19:48

-This will be our sixth house.

-OK!

0:19:480:19:51

We've got five others tenanted and it actually works out quite well.

0:19:510:19:54

-We've got some brilliant tenants, yeah.

-That makes all the difference.

0:19:540:19:58

Bev manages to combine property with her job as a medical practitioner

0:19:580:20:02

in a local surgery but it's Mark who is the full-time developer

0:20:020:20:06

and it turns out he's no slouch

0:20:060:20:08

when it comes to getting trained up, either.

0:20:080:20:10

So, who does the work?

0:20:100:20:12

I'm a DIY...type of guy so, yeah.

0:20:130:20:17

-I've done a kitchen course.

-Kitchen fitting, isn't it?

0:20:170:20:20

Kitchen fitting course and also I've done basic plumbing courses

0:20:200:20:25

and I've done basic carpentry courses and things like that so basically...

0:20:250:20:28

-Plastering.

-Plastering, yeah.

-Tiling.

-Tiling, yeah.

0:20:280:20:31

So I've had a little bit of a go.

0:20:310:20:34

Roofing, gardening, damp proof course installation...

0:20:340:20:37

I have done gardening, yes. THEY LAUGH

0:20:370:20:40

-Quite a few courses, then?

-Yeah, yeah, yeah.

0:20:400:20:42

But you are actually putting them into practical use?

0:20:420:20:45

-Yes, hopefully.

-It is amazing. I'm really proud of him cos when we got married,

0:20:450:20:48

he couldn't actually change a plug or a light bulb or anything.

0:20:480:20:51

He was absolutely useless at that sort of thing

0:20:510:20:53

but now he's a completely different man. I'm brilliantly pleased with him.

0:20:530:20:56

-Now, have you pushed him slightly into those courses?

-Yes.

0:20:560:21:01

I think it's because you want to do things properly.

0:21:010:21:03

If you're doing work on a house and you do a shoddy job,

0:21:030:21:05

the tenants are going to be calling you back, so he's doing it properly.

0:21:050:21:09

-Fair play.

-Yeah.

-And he's doing a good job.

-Yeah, I enjoy it.

0:21:090:21:12

-And she's the foreman so I've got no choice.

-I'm the foreman.

0:21:120:21:15

# Whoa, whoa I've got to go

0:21:150:21:17

# Back to school! #

0:21:170:21:21

Well, I know we always say do your homework,

0:21:210:21:23

but these two have gone all the way back to school.

0:21:230:21:26

It's a very clever move because those courses

0:21:260:21:29

are an investment, which will save them money in the long run.

0:21:290:21:33

So, what are you going to do to it, then? What's the plan?

0:21:350:21:39

Well, basically we're just going to paint it, new flooring...

0:21:390:21:42

The kitchen... We might put a cooker extractor fan and sort all that out,

0:21:420:21:47

make it look a bit nicer.

0:21:470:21:49

Now, what we wanted to do was change it from a three-bedroom

0:21:490:21:52

to a four-bedroom but we had a look upstairs and with a boiler...

0:21:520:21:56

You know, you're going to be pulling loads of walls out

0:21:560:21:58

and moving things around, which, to be honest, with the time element...

0:21:580:22:02

We don't know whether that's right for us or not

0:22:020:22:04

so, basically, we looked in the downstairs bathroom

0:22:040:22:07

and we could see that we could use that maybe as a fourth bedroom

0:22:070:22:10

or a study depending really, so...

0:22:100:22:13

Have you looked into how much difference it would make to rental, three to four?

0:22:130:22:16

Yeah, quite a bit actually so this is why

0:22:160:22:18

we would actually look at trying to get it into a four-bedroom.

0:22:180:22:22

-There is a bit of a difference. Quite a bit actually.

-How much?

0:22:220:22:25

-Well, we were looking at DSS as a guide.

-Right.

0:22:250:22:28

I think it's £500 a month for a three but it's £650 for a four...

0:22:280:22:32

-Oh, wow.

-..so quite a difference.

-Yeah, £150 a month more.

0:22:320:22:35

-That's right.

-So worth pushing for it if you can do it,

0:22:350:22:38

but it's a bit tight to get a bedroom in that bottom bit.

0:22:380:22:40

-It is, yeah.

-It is tight and that's why we were trying to

0:22:400:22:43

-think of how we can refigure upstairs.

-Right.

0:22:430:22:45

Time for Mark and Bev to get their thinking caps on with regard

0:22:450:22:49

to redecoration and also do some calculations

0:22:490:22:52

to see if reconfiguring the house is going to pay off.

0:22:520:22:55

It sounds like a great return for a four-bed but it could end up

0:22:550:22:59

being costly, which might reduce that all-important yield.

0:22:590:23:03

This is all part of the pension plan so they need to get it just right.

0:23:030:23:08

Still, with those skills of Mark's,

0:23:080:23:11

they should be able to save a few quid and all that time spent

0:23:110:23:13

waiting around for tradesmen to be available.

0:23:130:23:17

Talking about how time...

0:23:170:23:18

So, what's the timescale?

0:23:180:23:20

Now, we're currently working on a property at the moment,

0:23:200:23:23

which is going to take us at least, I would say, four to eight weeks

0:23:230:23:27

and then we'll start this one

0:23:270:23:28

so it will probably take about six months with the whole of everything.

0:23:280:23:32

OK, and what's the budget?

0:23:320:23:34

Oh, I think we can reasonably do it, as long as there are no big hiccups,

0:23:340:23:38

-between 4,000 and 6,000.

-Right. Well, congratulations.

-Thank you.

0:23:380:23:42

-Thank you so much.

-Good luck with it.

-Thank you.

-Thank you.

0:23:420:23:45

And we look forward to seeing how you get on.

0:23:450:23:47

-Thank you so much.

-Nice to meet you.

-Thank you.

0:23:470:23:49

Well, Mark and Bev certainly seem to know what they're doing

0:23:510:23:55

and I think they've got a great buy with this place.

0:23:550:23:58

Yes, a bargain indeed and with all that experience and training,

0:23:580:24:01

I'm sure there'll be no problems whatsoever sorting it out.

0:24:010:24:06

You can find out how they get on later in the show.

0:24:060:24:08

Coming up...this developer in Northumberland

0:24:100:24:13

isn't planning to go it alone.

0:24:130:24:14

I'm going to have to rely on other people maintaining it

0:24:140:24:17

and to look after it because I won't be able to.

0:24:170:24:20

And Bev and Mark put all that training into practice.

0:24:220:24:26

We actually dug a trench in the middle of January.

0:24:260:24:29

It was a nightmare.

0:24:290:24:30

Earlier in the programme, I was in the Isle of Sheppey,

0:24:360:24:39

just off the North Kent coast,

0:24:390:24:41

and there I saw a four-bed detached house guided at 130,000 - 140,000.

0:24:410:24:46

With a huge driveway and garden, things looked promising,

0:24:480:24:52

but inside was very quirky.

0:24:520:24:54

Overhead beams, Gothic fireplace, sliding doors...

0:24:540:24:58

Hey, why not have a platform, too?

0:24:580:25:00

I was dazed and confused

0:25:000:25:02

and, upstairs, it wasn't the spiral staircase that made my head spin.

0:25:020:25:06

Oh, no. It was the, er, well, geometrically challenging bedrooms.

0:25:060:25:11

Be careful of the sloping ceilings of course

0:25:110:25:14

because there are loads of them. It's very angular, a bit awkward...

0:25:140:25:18

Now, through here... This is quite funny

0:25:180:25:21

because there's the shower, but you have to go round here

0:25:210:25:24

to get over to the loo and the bidet, and here we are again.

0:25:240:25:27

It's great, isn't it?

0:25:270:25:29

# I'm spinning around

0:25:290:25:31

# Move out of my way

0:25:310:25:34

# I know you're feeling me cos you like it like this... #

0:25:340:25:37

Well, I didn't really like it like this, to be honest.

0:25:380:25:41

A bit of work was needed to bring out the house's charm

0:25:410:25:44

and Lorna agreed.

0:25:440:25:45

She and her husband, Derek, paid £158,000 at auction

0:25:450:25:50

and they looked to pause their nomadic lifestyle that had seen

0:25:500:25:53

them living in Spain, France and just about everywhere in England,

0:25:530:25:57

to put some roots down here.

0:25:570:26:00

A friend said to me the other day, "Are you going to stay here?"

0:26:000:26:03

I said, "I can't imagine saying that about anywhere."

0:26:030:26:07

-I think we're a bit nomadic...

-Really?

-..and like a challenge.

0:26:070:26:10

-Well, you've certainly got a challenge here.

-Yes, very much so.

0:26:100:26:13

They'd given themselves a year and £40,000

0:26:130:26:16

to transform this place.

0:26:160:26:18

So, 12 months later, we've come back to see

0:26:180:26:21

if this quirky house has become a home.

0:26:210:26:24

Well, it certainly has.

0:26:330:26:34

First of all, Lorna can take us through

0:26:340:26:37

the changes in the kitchen dining area.

0:26:370:26:39

I would say this room is the major change.

0:26:410:26:45

If you remember, here we had a raised area

0:26:450:26:48

so basically the kitchen was just this square.

0:26:480:26:52

We just put a new floor down.

0:26:520:26:54

We were going to do a utility area there

0:26:540:26:57

but I felt it was going to encroach on the lovely space

0:26:570:27:01

and so we've gone for integrated units,

0:27:010:27:03

hidden everything away and managed to keep the room as one.

0:27:030:27:06

But the real focal point of the kitchen is the island.

0:27:080:27:12

We did this because, obviously, the structure.

0:27:120:27:15

And we had to work with it

0:27:150:27:18

so I wanted an island because it's nice for me to work

0:27:180:27:21

and someone's sat there having a glass of wine chatting.

0:27:210:27:25

It's just a lovely space.

0:27:250:27:27

It's my favourite room in the house, I would say.

0:27:270:27:30

There's a few changes to talk about in the lounge, too.

0:27:300:27:33

The fireplace - we just had to live with it. It was quite a large room.

0:27:330:27:38

To be honest, I was struggling as to how I was going to furnish it

0:27:380:27:42

but that problem didn't arise

0:27:420:27:44

because we stole the end of it to replace the fourth bedroom.

0:27:440:27:48

Hold on. Lorna, please explain what you did

0:27:480:27:52

with the downstairs bedrooms.

0:27:520:27:54

There were two bedrooms downstairs,

0:27:540:27:56

one of which we stole to make a bathroom so then we've taken

0:27:560:28:00

the end of the lounge and made it into

0:28:000:28:03

the replacement bedroom, if you like.

0:28:030:28:05

This room is more or less as it was,

0:28:050:28:09

with the exception of the bay window, which we've replaced.

0:28:090:28:12

All the windows have been replaced in the house now. We've coved.

0:28:120:28:16

We kept the floor and just decorated

0:28:160:28:19

and it's a lovely bright and airy room, with another window here,

0:28:190:28:22

which gives you a double aspect.

0:28:220:28:25

Well, upstairs remains a work in progress with plans to renovate

0:28:290:28:33

the two existing bedrooms and the en-suite.

0:28:330:28:36

But the route upstairs, the spiral staircase, certainly has changed.

0:28:370:28:42

The spiral staircase... It was a no-no from day one.

0:28:420:28:46

We realised we'd have to replace it. Not as easy as one would think

0:28:460:28:50

because of the nature of the shape of the stairwell.

0:28:500:28:54

It was very difficult. The guy that did it did an amazing job.

0:28:540:28:58

Lorna's husband, Derek, a retired builder, has done the majority

0:28:590:29:03

of the work in the house, but how's that budget looking?

0:29:030:29:06

Oh, my God, the budget.

0:29:060:29:08

Oh, dear. Sorry, Lorna, but we do have to ask.

0:29:080:29:11

Yes. I said 40,000.

0:29:110:29:13

I think that could have been wishful thinking again.

0:29:130:29:16

We are 50% up on that.

0:29:160:29:18

It's about 60 but that does include all the materials

0:29:180:29:23

that we have outside to do all the patio areas outside.

0:29:230:29:26

We've already bought all the stuff for upstairs and the bathroom.

0:29:260:29:30

Hopefully 60,000 will do it.

0:29:300:29:33

But there is a bonus.

0:29:330:29:35

Lorna and Derek have planning permission to make

0:29:350:29:37

even more extensive changes in the future.

0:29:370:29:40

Where the garage is, we're planning

0:29:400:29:43

and we have planning permission for a three-bedroom chalet bungalow.

0:29:430:29:47

We have the plans here.

0:29:470:29:48

So basically the front door is going to be

0:29:480:29:51

on the other side of the property.

0:29:510:29:53

You'll come in the front door

0:29:530:29:54

and there'll be a bedroom to your left and a living room.

0:29:540:29:57

And downstairs there'll be a bathroom, as well,

0:29:570:30:00

and a fairly large kitchen diner

0:30:000:30:03

and then upstairs there's going to be two more bedrooms, one en-suite...

0:30:030:30:07

So, we're hoping to perhaps build that ourselves or get a price for it

0:30:070:30:11

from a builder to do it. We haven't really decided as yet.

0:30:110:30:15

If we don't want to develop it when we finish this,

0:30:150:30:18

we might decide to market the whole caboodle.

0:30:180:30:23

Well, how much is the whole caboodle worth?

0:30:240:30:26

And is it worthwhile building that extra property?

0:30:260:30:30

One way to find out is to ask two local estate agents,

0:30:300:30:33

starting with the agent who saw it one year ago.

0:30:330:30:36

I think the changes that have been made since my last view

0:30:360:30:39

have been absolutely fantastic.

0:30:390:30:40

It's a wonderful finish, the property is light and airy,

0:30:400:30:43

spacious and the views are fantastic, as well.

0:30:430:30:47

A real, real improvement.

0:30:470:30:48

The finish of this property is great.

0:30:480:30:50

It's definitely what people are looking for in this current market.

0:30:500:30:53

It's modern and a great size.

0:30:530:30:55

So far, Lorna and Derek have spent 218,000

0:30:560:31:00

buying and renovating the house.

0:31:000:31:02

So, what kind of value could it sell for?

0:31:020:31:05

I would potentially put this property on the market

0:31:050:31:07

between £260,000 - £270,000.

0:31:070:31:10

I would envisage this house would be looking to go onto the market

0:31:100:31:14

between £260,000 and £270,000.

0:31:140:31:17

The couple have estimated that the cost of building the chalet bungalow

0:31:170:31:20

could be 120,000 so what could it sell for?

0:31:200:31:25

If they did build the new-build on the side, it would be worth

0:31:250:31:28

between £200,000 and £210,000.

0:31:280:31:31

They'd be looking to achieve in the region of £200,000 - £210,000.

0:31:310:31:35

The agents agree and at that top valuation,

0:31:350:31:38

Lorna and Derek could make

0:31:380:31:40

a pre-tax profit of £52,000 on the existing property.

0:31:400:31:45

And the new build could have a potential profit

0:31:450:31:47

of 90 grand before the usual taxes and expenses.

0:31:470:31:52

So, what does Lorna think of the valuations

0:31:520:31:54

and will they build that bungalow?

0:31:540:31:56

I think the figure for the house seems a little bit low.

0:31:570:32:00

I think possibly we might go ahead with the new build. I don't know.

0:32:000:32:05

We'll see. We'll have to have a board meeting I think.

0:32:050:32:09

I'm sure if the board of Lorna and Derek

0:32:090:32:11

do decide to build, then we'll be back.

0:32:110:32:14

But reading the leaves, I think

0:32:140:32:15

Lorna is pleased with this renovation.

0:32:150:32:18

Is there another project brewing?

0:32:180:32:20

I think some days we've enjoyed it and some days we think,

0:32:200:32:24

"We must be mad." Whether we'll do it again, I'm not really sure.

0:32:240:32:28

My husband does say, actually,

0:32:280:32:30

he thinks this could be the last project so watch this space.

0:32:300:32:34

I'm in Northumberland and the estate of Scotland Gate,

0:32:380:32:42

which is just on the outskirts of the village of Choppington.

0:32:420:32:46

Lots of the estates around here centred around the mining industry

0:32:460:32:50

and back, in the day, miners from Ashington, Bedlington and Choppington

0:32:500:32:54

used to refer to the collieries there as A, B, or C.

0:32:540:32:58

# ABC, easy as 1, 2, 3

0:32:580:33:02

# ABC 1, 2, 3,

0:33:020:33:05

# Baby you and me girl... #

0:33:050:33:07

And swotting up on your ABCs will stand you in good stead

0:33:070:33:10

when it comes to today's property.

0:33:100:33:12

On that note, the property I'm here to see is a three-bed

0:33:120:33:15

semidetached house with a guide price of £20,000.

0:33:150:33:19

Let's take a look.

0:33:190:33:21

There is a shed, which is always good news,

0:33:210:33:23

but in this case you do have to share it with your neighbour.

0:33:230:33:27

Let's take a look inside.

0:33:280:33:31

So, into a small hallway here.

0:33:310:33:34

Stairs going up to the bedrooms. The bathroom down there.

0:33:340:33:39

Downstairs bathroom, I'm not a massive fan of a downstairs bathroom

0:33:390:33:42

but it does look in good condition.

0:33:420:33:44

Although it's not in my preferred position,

0:33:440:33:47

it is a modern suite and it has been fitted and tiled to a high standard.

0:33:470:33:52

Just a shame it's not upstairs.

0:33:520:33:54

The dual aspect lounge is a good size

0:33:560:33:58

and links the kitchen to the entrance hall.

0:33:580:34:00

Into the kitchen.

0:34:020:34:04

Now, it looks brand-new to me.

0:34:040:34:06

Somebody's definitely started working here already

0:34:060:34:08

and done a good job. At the end, there, there's room for utilities.

0:34:080:34:13

What I've seen so far, I'm liking.

0:34:130:34:15

Yes, this doesn't seem too bad at all

0:34:170:34:19

although it looks like someone's started installing

0:34:190:34:22

a new heating system and didn't bother finishing it.

0:34:220:34:25

Now, let's make use of those lovely patio doors

0:34:260:34:29

and see what's out the back.

0:34:290:34:31

Over there, there used to be a colliery,

0:34:310:34:33

which would have provided employment

0:34:330:34:35

for thousands of people but right now, to us, it's an amazing view.

0:34:350:34:41

I'm stood here on a raised piece of decking,

0:34:410:34:43

which I can see somebody has tried to make good.

0:34:430:34:46

But overall this is a nice-sized garden.

0:34:460:34:48

Get this grass sorted out, cut it down, table and chairs in here.

0:34:480:34:53

Now, I know what you're thinking,

0:34:530:34:55

"Forget the table and chairs, we could get an extension out here."

0:34:550:34:59

Well, actually, no, you can't because,

0:34:590:35:02

tucked away in the legal pack, which of course you would always read

0:35:020:35:05

being a viewer of Homes Under the Hammer,

0:35:050:35:08

is a covenant that says the property has restrictions

0:35:080:35:11

on what you can do with it.

0:35:110:35:13

You can do minor improvements but no extensions. It has to stay the same.

0:35:130:35:18

How do I put this?

0:35:180:35:20

-# You can't change me

-You can't change me

0:35:200:35:24

# Or rearrange me... #

0:35:240:35:27

I couldn't have put it better myself.

0:35:280:35:31

Of course, there's no reason not to be perfectly happy

0:35:310:35:34

with the accommodation as it is because upstairs is fine.

0:35:340:35:37

Turn right once on the landing, and you're in the largest bedroom

0:35:380:35:41

overlooking the fields at the back of the house.

0:35:410:35:45

The second bedroom, although not palatial,

0:35:450:35:48

is plenty big enough for most practical purposes.

0:35:480:35:50

And the smallest bedroom is just about big enough

0:35:520:35:55

to fit in a small single bed.

0:35:550:35:57

I really like this property, especially guided at 20 grand.

0:35:580:36:01

It's a lot of house for the money.

0:36:010:36:03

What does a local estate agent think?

0:36:040:36:07

It's a nicely presented three-bedroom property.

0:36:110:36:13

I think the selling points are the open views to the front

0:36:130:36:16

and to the rear, as well. Some good improvements made.

0:36:160:36:20

I just think with the shared access next-door, it might put off

0:36:200:36:22

one or two potential buyers.

0:36:220:36:24

So, with not a lot of room to add value,

0:36:240:36:27

especially when you bear in mind that covenant,

0:36:270:36:29

what does he think it could sell for

0:36:290:36:31

if you were to give it a cosmetic lift?

0:36:310:36:34

I think in the current market this property would achieve

0:36:340:36:36

in the region of £45,000.

0:36:360:36:38

However, the good news is that, having done a bit of research,

0:36:390:36:43

this is definitely an area where people are looking to rent.

0:36:430:36:46

So what rental valuation would he put on the property?

0:36:460:36:50

On the rental side of things, I would recommend we put this

0:36:500:36:52

on the market for £400 per calendar month.

0:36:520:36:55

So it is what it is. It's in good condition

0:36:560:36:59

and you wouldn't need a huge budget to turn it around.

0:36:590:37:01

Let's see who saw the potential when it went to auction.

0:37:010:37:04

We skip along to Choppington. It's lot 241.

0:37:060:37:08

Start me at 10,000. Lot 241. 10,000 I say.

0:37:100:37:15

Thank you, sir. On my right, the far right, 10,000.

0:37:150:37:17

11... 11...

0:37:170:37:20

12, 13, 14,

0:37:200:37:24

15, 16, 17,

0:37:240:37:28

18, 1,000...

0:37:280:37:30

In the busy saleroom, bids soon outstrip the £20,000 guide price.

0:37:300:37:36

We rejoin the bidding at £26,000.

0:37:360:37:38

..26, 27?

0:37:380:37:41

Gentleman's bid on my right. 26,000. 27 anywhere else?

0:37:410:37:44

First on 26, second time on 26...

0:37:460:37:51

for the third and final time at £26,000, your bid. It's going to go.

0:37:510:37:55

Half? Why not? 26 and a half, 27?

0:37:570:38:00

And a half?

0:38:000:38:01

No. Still with you. It's 27,000 this time.

0:38:010:38:05

First time, second time,

0:38:050:38:07

third and final time at £27,000 on my right, against you on my left...

0:38:070:38:10

-GAVEL BANGS

-Sold at £27,000.

0:38:100:38:13

Clinching the property for 27 grand was Chris.

0:38:130:38:16

He hails from Woking, over 300 miles away,

0:38:180:38:21

and fits TV aerials for a living.

0:38:210:38:23

He's looking to add to his small rental portfolio

0:38:230:38:26

and I gave him a welcoming reception at his latest purchase.

0:38:260:38:31

-Nice to meet you, sir.

-Nice to meet you.

-Congratulations.

-Thank you.

0:38:310:38:34

Did you go just for this property or was there anything else

0:38:340:38:37

-that you went for?

-There were four or five other properties.

0:38:370:38:40

There were two others I would have bid on and I found that

0:38:400:38:44

if I had bid on those, it would have meant

0:38:440:38:48

probably six months' work on doing it up cos they were...

0:38:480:38:52

-wrecks.

-They were a mess?

-Yes.

0:38:520:38:54

Nothing like this. Superficial, isn't it, everything to be done in here?

0:38:540:38:57

-Yes.

-Is that what you were looking for, that kind of property?

0:38:570:39:00

-I was. To be honest, I was.

-You're a Woking lad?

-Yeah.

0:39:000:39:03

-You live in Woking.

-Yes.

-Your family is in Woking.

-Yes.

0:39:030:39:07

Why here?

0:39:080:39:10

Well, it's unfortunate. The price of houses...

0:39:100:39:13

-it's much cheaper around here.

-Yeah.

0:39:130:39:16

That's, I suppose, the main reason

0:39:160:39:18

but the north of England is a great place.

0:39:180:39:22

It's a great place. It's a long way away from home

0:39:220:39:24

but that doesn't seem to faze you, the journey.

0:39:240:39:26

I'm going to have to rely on other people anyway.

0:39:260:39:28

If it was more than 100 miles, I'd have to rely on other people

0:39:280:39:32

to maintain it and to look after it because I won't be able to.

0:39:320:39:36

-# And it's a long, long way

-Long way

0:39:360:39:40

# From where you want to be... #

0:39:400:39:44

That distance is an issue for sure but it's not putting him off,

0:39:450:39:49

and rather than drive, Chris intends on using the train

0:39:490:39:52

and his trusty bike to cover the 300 odd miles.

0:39:520:39:56

In fact, far from putting him off,

0:39:560:39:58

he might even buy another property in this area and that makes sense

0:39:580:40:02

because there might be some economies of scale.

0:40:020:40:06

I think Chris has got himself a neat little rental machine here

0:40:060:40:09

so what does he feel he needs to do to it?

0:40:090:40:11

Well, the fireplace needs sorting out, replace the carpets

0:40:110:40:17

and decorate throughout.

0:40:170:40:19

Again, it looks like it's been decorated and painted

0:40:190:40:22

so there are just little bits I need to sort out.

0:40:220:40:26

So, Chris, are you going to do all the work?

0:40:260:40:27

Have you got a team of people to help you?

0:40:270:40:29

I'm going to do the basic work. The electrics... Sort that out.

0:40:290:40:34

But obviously the gas, I will get professionals in to do that.

0:40:340:40:38

Chris is trained in electrical matters for his TV repair business

0:40:380:40:41

and, of course, all work needs to be certified

0:40:410:40:44

if you're renting out a property. On a larger scale,

0:40:440:40:48

Chris has thoughts on my pet hate - the downstairs bathroom.

0:40:480:40:52

I do like a bathroom upstairs and a toilet upstairs.

0:40:520:40:55

My thoughts were perhaps an en-suite in the bedrooms

0:40:550:40:59

but I found that around here it's actually normal

0:40:590:41:03

for the toilets and the shower and the bath to be downstairs.

0:41:030:41:08

One of the bedrooms upstairs...is big, isn't it? It's quite large.

0:41:080:41:11

It's big enough to take an en-suite, yes.

0:41:110:41:14

-So, that's just something you've got to think about and maybe turn around yourself?

-Yes.

0:41:140:41:18

Chris hasn't got that much to do, so should this take too long?

0:41:180:41:23

-I would hope to turn it around within the next six weeks.

-OK.

0:41:230:41:26

If I can do that, that would be good. Two months and I'll be out.

0:41:260:41:29

-OK.

-Up here, unfortunately they don't have any grace on council tax,

0:41:290:41:34

so as soon as you purchase a house, you start paying council tax.

0:41:340:41:37

-It's yours.

-It's mine. You don't get any help that way.

0:41:370:41:41

OK. So that's your timescale, and your budget, as well?

0:41:410:41:44

Um...2,000, 2,500. It really depends on the en-suite.

0:41:440:41:49

I don't think there's going to be any surprises.

0:41:490:41:51

You've looked in all the nooks and crannies. Have you had any surprises?

0:41:510:41:54

-I haven't been in the loft yet...

-Ah-ha.

-..and there is a gaping hole

0:41:540:41:58

in the loft where there used to be an old boiler up there.

0:41:580:42:03

So, there may be some issues in the loft.

0:42:030:42:06

I might have to insulate that more.

0:42:060:42:09

So, though he's got that travelling to do, it sounds like Chris

0:42:090:42:13

is on it with this house and it turns out he didn't have to travel

0:42:130:42:16

quite so far for the other properties in his portfolio.

0:42:160:42:19

I bought my neighbour's house about four years ago

0:42:190:42:24

and we had already purchased my mum's house.

0:42:240:42:29

She passed away a few years ago but we purchased it

0:42:290:42:31

in 2000 from the council and so this is the third house.

0:42:310:42:37

Is it always going to be a rental thing or are you looking to

0:42:370:42:40

maybe buy and sell as well or buy and live in, maybe?

0:42:400:42:43

Because I haven't paid into a pension,

0:42:430:42:45

I've been self-employed for the last 28, 30 years,

0:42:450:42:49

I would like to use this as my pension, yes.

0:42:490:42:52

And something for my kids, for them to live off.

0:42:520:42:58

I wish you all the best, Chris. I know you're going to do well.

0:42:580:43:00

-Good luck.

-Thank you.

0:43:000:43:02

-I hope your children have got lots of houses to choose from.

-Yes.

0:43:020:43:05

Thank you.

0:43:050:43:07

So, Chris purchased this property, which is over 300 miles away

0:43:070:43:11

from his home in Woking. Will he get sick of the train journey

0:43:110:43:14

and will he get all the work done within that £2,000 budget?

0:43:140:43:18

You can find out later on in the programme.

0:43:180:43:20

So, we've seen how one buyer got on, but what about the other two?

0:43:240:43:27

Did they stick to their schedule and budget

0:43:270:43:30

and do they stand to make a profit?

0:43:300:43:31

Mm. Let's take a closer look.

0:43:310:43:33

Time to return to Bridgend in Wales

0:43:360:43:38

and this three-bed mid-terrace, guided at £72,000.

0:43:380:43:43

# Baby I love

0:43:430:43:46

# I love only you... #

0:43:460:43:48

Yes, built in the '50s to house the growing baby boom population.

0:43:480:43:54

For me, it was a nice surprise.

0:43:540:43:56

From the outside, it looks OK but inside... Wow!

0:43:560:44:01

Loads of space.

0:44:010:44:03

Not only that but it had a huge back garden

0:44:030:44:06

and two large bathrooms, one downstairs...

0:44:060:44:11

and one up.

0:44:110:44:13

Could there be potential to use some of that space as an extra bedroom?

0:44:130:44:18

It was bought at auction for £66,000 by husband and wife Mark and Bev.

0:44:180:44:22

So what was it that piqued their interest?

0:44:220:44:25

I haven't got a clue. Why did we want to buy the house, Mark?

0:44:250:44:28

It's a good start! You don't know why you bought it?

0:44:280:44:30

-The price was right for a start.

-The price was right. I love that.

0:44:300:44:33

Oh, it's a house, it'll do!

0:44:330:44:35

# I find it every time you bet

0:44:350:44:38

# They can't fool me... #

0:44:380:44:40

Don't let them fool you,

0:44:400:44:41

Mark and Bev have a portfolio of rental properties

0:44:410:44:45

and Bev recently passed her landlord accreditation course.

0:44:450:44:49

They saw potential in this place, especially if they could add

0:44:490:44:52

an extra room. But would the return justify the extra cost involved?

0:44:520:44:56

Mark and Bev had set aside a budget of £4,000 - £6,000

0:45:020:45:06

and a timescale of six months but those plans abruptly changed

0:45:060:45:11

when, very sadly, Mark's father passed away.

0:45:110:45:14

It was difficult when my father died to actually focus

0:45:160:45:20

and carry on with the build. It's very difficult

0:45:200:45:23

because everything just goes through the window, really.

0:45:230:45:26

You just don't think of what's important and then it took

0:45:260:45:30

a little bit of a while for us to focus and then,

0:45:300:45:33

when we got back to it,

0:45:330:45:35

we were able to carry on with the build but it was a difficult time.

0:45:350:45:39

It just makes you realise that family is more important

0:45:390:45:41

than finances and work.

0:45:410:45:42

So true. And having taken a few weeks respite,

0:45:440:45:47

Mark and Bev continued renovating the house

0:45:470:45:50

and we're back five months later to see how they got on.

0:45:500:45:54

# I'll be your Emmylou

0:45:540:45:56

# And I'll be your June

0:45:560:45:59

# If you'll be my Gram

0:45:590:46:02

# And my Johnny too

0:46:020:46:04

# No, I'm not asking much of you

0:46:040:46:10

# Just sing little darling Sing with me... #

0:46:100:46:14

In the time that we've been here,

0:46:160:46:17

the work that we've actually done has involved, first of all, the safety issues.

0:46:170:46:21

So, we've had a plumber in to give us the gas certificate,

0:46:210:46:23

we've had a partial rewiring, we've had a qualified electrician in.

0:46:230:46:26

We started off with the bedrooms.

0:46:260:46:29

The existing doors that were damaged, we've done them.

0:46:290:46:33

Some of the frames were damaged, too. We've done that.

0:46:330:46:36

We painted it, put flooring in, we levelled the floor up in the lounge,

0:46:360:46:41

we obviously plastered about three or four walls,

0:46:410:46:44

we put a fireplace in, we put the kitchen in...

0:46:440:46:49

Miles and miles of laminate flooring.

0:46:490:46:50

-Miles of laminate flooring.

-My knees are still sore.

0:46:500:46:54

Yes. You've done well. Is there any more?

0:46:540:46:58

Oh, there's always more.

0:46:580:46:59

Mark and Bev have given a terrific example

0:47:010:47:04

of how to renovate a house intended to be let.

0:47:040:47:06

What did these lovely landlords decide to do

0:47:080:47:11

with those two bathrooms?

0:47:110:47:12

We were unsure what to do with the downstairs bathroom so we called

0:47:140:47:17

a couple of estate agents. So, they came and had a look, one of them did,

0:47:170:47:21

and we decided that we'd be better to turn

0:47:210:47:23

it into a bedroom, so that's what we've done.

0:47:230:47:25

With the bathroom upstairs, we didn't really want to spend too much

0:47:250:47:28

with it cos it looked not in bad condition

0:47:280:47:31

so what we decided to do was put transfers around it,

0:47:310:47:33

we cleaned the tiles up and then we put a shower and a screen in

0:47:330:47:37

and just cleaned it all up.

0:47:370:47:39

I think it was smart to get the opinion of a local estate agent

0:47:390:47:41

to help them make their decision.

0:47:410:47:43

Whenever you're thinking of major work, it's always worth checking

0:47:430:47:46

with local experts from trade professionals to planning officials

0:47:460:47:50

to help you make an informed decision.

0:47:500:47:53

Unfortunately for the couple, there was

0:47:530:47:55

another bathroom-related problem that had to be dealt with.

0:47:550:47:58

We noticed the pressure was quite low

0:48:010:48:03

so we decided we had to put a new water mains in

0:48:030:48:06

so we actually then dug a trench in the middle of January.

0:48:060:48:11

It was about one foot to two feet in width

0:48:110:48:14

and two and a half feet down. It was a nightmare.

0:48:140:48:17

The soil was really solid and it's not the best thing to do in January

0:48:170:48:22

and then we had to lag it and pipe it, so it was a bit of a nightmare.

0:48:220:48:25

It took ages.

0:48:250:48:27

# Can you dig it? Oh, yeah

0:48:270:48:32

# Can you dig it? Oh, yeah... #

0:48:320:48:36

Yes. When you see people making a profit on Homes Under the Hammer,

0:48:360:48:40

remember what they had to go through to get there.

0:48:400:48:43

Mark dug that trench by hand and it's that hands-on approach

0:48:430:48:48

that helped them keep to their budget of £6,000.

0:48:480:48:52

And despite everything, they're still within

0:48:520:48:54

their timescale of six months, having taken just five months

0:48:540:48:58

although they say the actual hard graft took 12 weeks.

0:48:580:49:02

They bought the house for £66,000, 6,000 under the guide price.

0:49:050:49:10

But will their work impress local estate agents?

0:49:100:49:13

We've asked two along to find out.

0:49:130:49:16

Since I first visited the first property,

0:49:160:49:18

there's been a substantial change here.

0:49:180:49:20

Aesthetically, there's a big difference here.

0:49:200:49:23

It's a much more modern property now, aligning it very well for both

0:49:230:49:26

the sales and the rental market.

0:49:260:49:28

I think this property would rent almost overnight

0:49:280:49:32

cos there's a large demand for rental properties.

0:49:320:49:35

It's also a saleable property, which could sell in a reasonable timescale.

0:49:350:49:39

That strong rental market is great news for Mark and Bev

0:49:410:49:43

but unfortunately, when it comes to valuations,

0:49:430:49:47

the room that used to be a bathroom won't necessarily

0:49:470:49:49

be counted as a bedroom as it's downstairs.

0:49:490:49:53

Both estate agents shared the opinion that this should

0:49:530:49:56

be considered a three-bed house with a flexible room downstairs.

0:49:560:50:00

So, having spent a total of £72,000, is there still potential for profit?

0:50:000:50:06

In the current sales market, I would estimate a value

0:50:060:50:09

of between £85,000 and £90,000.

0:50:090:50:12

In my opinion, the likely price to be realised for this property

0:50:120:50:16

would be somewhere in the region of £100,000.

0:50:160:50:20

If they were to rent the property out,

0:50:200:50:21

I would estimate a rent in the region of £595 per calendar month.

0:50:210:50:26

In my opinion, the likely rental value of this property

0:50:260:50:29

would be in the region of £595 per calendar month.

0:50:290:50:33

I can understand why the estate agents

0:50:330:50:35

would call it a three-bedroomed house.

0:50:350:50:37

We've renovated it as a completely flexible room.

0:50:370:50:40

However, it has been let out as a fourth bedroom

0:50:400:50:43

and we are actually managing to secure a tenant on 650,

0:50:430:50:47

which is brilliant.

0:50:470:50:48

Mark and Bev had done their research

0:50:480:50:51

and followed the Department of Social Services stipulations

0:50:510:50:54

for size and rental price of a four-bed house,

0:50:540:50:57

so it's great that they have a tenant

0:50:570:51:00

and that rent of £650 per calendar month will give them

0:51:000:51:04

a yield of almost 11%.

0:51:040:51:05

So, after everything they've been through,

0:51:050:51:08

how will they remember this experience?

0:51:080:51:11

The experience has been really quite hard work.

0:51:110:51:14

Yeah, it's been difficult because of my father's passing, really.

0:51:140:51:17

-I'm proud of what you've done, though.

-Thank you.

0:51:170:51:19

Welcome back to Northumberland and this three-bed semidetached house.

0:51:250:51:30

It had a modern kitchen, spacious rooms,

0:51:300:51:34

and when a guide of £20,000 buys you views like this,

0:51:340:51:38

I thought this could be a good buy.

0:51:380:51:41

It was snapped up at auction by aerial fitter Chris,

0:51:410:51:44

who bought the property for £27,000.

0:51:440:51:48

I thought the layout could be improved so I dropped a hint.

0:51:480:51:51

I do like a bathroom upstairs and a toilet upstairs.

0:51:510:51:54

My thoughts were, perhaps an en-suite in the bedroom.

0:51:540:51:58

One of the bedrooms upstairs... It's big, isn't it? It's quite large.

0:51:580:52:02

It's big enough to take an en-suite, yes.

0:52:020:52:04

# Get up Get on up

0:52:060:52:09

# Get up Get on up... #

0:52:090:52:12

As subtle as ever, eh?

0:52:120:52:14

Chris had given himself a budget of £2,000 - £2,500 for the renovation

0:52:140:52:19

and a timescale of six weeks to two months,

0:52:190:52:22

but as he lived in Woking, any work he had to do

0:52:220:52:25

would involve a long trip.

0:52:250:52:27

Would he fix his distance dwelling?

0:52:270:52:29

Well, five months have passed.

0:52:340:52:36

Has this house completed its renovation journey? Let's find out.

0:52:360:52:41

The house was in decent condition

0:52:490:52:51

but even then it's amazing what a little bit of TLC can do.

0:52:510:52:56

The new carpets have really brightened up the place.

0:52:560:52:59

Chris has sorted out the fireplace fitting in the living room...

0:52:590:53:02

..the dodgy decking out in the back garden has been replaced

0:53:040:53:07

and Chris has been very hands-on in other areas.

0:53:070:53:11

I needed to sort out some of the electrics.

0:53:110:53:13

I'm a qualified electrician, so there's not a problem there.

0:53:130:53:18

Also the windows upstairs had to be secured

0:53:180:53:22

so they couldn't open fully for Health and Safety.

0:53:220:53:26

I sorted that out and general painting, as well.

0:53:260:53:29

Always remember, safety comes first and use a certified professional

0:53:310:53:35

when work is required on specialist areas like electrics and gas.

0:53:350:53:40

As Chris is a trained electrician himself,

0:53:400:53:42

he could get stuck into the work, saving some money.

0:53:420:53:46

And he also saved some money in other areas.

0:53:460:53:49

We decided not to put an en-suite in.

0:53:490:53:52

There was going to be extra funds needed for that

0:53:520:53:55

so we kept it downstairs...

0:53:550:53:58

..put the shower curtain up

0:54:000:54:03

and just the usual things that you would have in a bathroom.

0:54:030:54:07

# Take it easy

0:54:070:54:11

# Take it easy... #

0:54:110:54:14

Well, I do prefer a bathroom upstairs

0:54:150:54:18

but as Chris is looking to stay within his tight £2,000 budget,

0:54:180:54:22

I can understand why he decided to leave it where it is.

0:54:220:54:26

So, with no bathroom to move,

0:54:260:54:27

this renovation would have been simple, surely?

0:54:270:54:31

Well, it's never that easy.

0:54:310:54:33

There was a hole, roughly about a foot square,

0:54:330:54:35

in the top right-hand corner just under the gutter.

0:54:350:54:39

When the boiler was replaced, they took it out of the loft

0:54:390:54:44

and put it in the kitchen.

0:54:440:54:46

Unfortunately, they didn't fill the holes up,

0:54:460:54:49

where the pipe came out and so I had to fill the hole in.

0:54:490:54:54

The other challenges... It took nine hours to get here from Woking.

0:54:540:55:00

I've used the railway and that's been interesting.

0:55:000:55:06

Never underestimate how tiring travelling can be.

0:55:060:55:09

In the end, Chris would come up from Woking every few weeks

0:55:090:55:12

and stay at the house a few days at a time to get the work done.

0:55:120:55:16

How has that reflected on his timescale and his budget?

0:55:160:55:20

I was planning for it to be finished within six weeks.

0:55:200:55:23

Unfortunately, due to the distance,

0:55:230:55:28

it took three months to complete the work.

0:55:280:55:32

I had £2,000 to spend on the renovation

0:55:330:55:38

and, um...I spent in the region of £2,000

0:55:380:55:43

so I was quite happy with that.

0:55:430:55:46

So, it's taken Chris longer than he'd hoped

0:55:460:55:48

but, having done the work himself,

0:55:480:55:50

he's managed to keep under his £2,000 budget.

0:55:500:55:54

Has all that commuting been worth it?

0:55:540:55:56

We've asked along two local estate agents to get their opinions.

0:55:560:56:00

There's been a good standard of finish throughout the property

0:56:000:56:03

including the carpets and the redecoration.

0:56:030:56:05

I think the owner's been right to leave the bathroom

0:56:050:56:07

on the ground floor for this particular property.

0:56:070:56:10

Three good-sized bedrooms upstairs

0:56:100:56:11

and that's going to be one of the main selling points.

0:56:110:56:14

The selling points of the property... I would say

0:56:140:56:16

definitely the size of it, it's a good layout,

0:56:160:56:18

it's clean and tidy, it's south at the back

0:56:180:56:20

and not overlooked on either side.

0:56:200:56:22

So, having spent £27,000 at auction and two grand on renovation,

0:56:220:56:26

what could Chris expect were he to sell?

0:56:260:56:30

If I was putting this property on the market today,

0:56:300:56:32

I would put this on the market at 45,950, offers in the region of,

0:56:320:56:37

with a view to accepting at about £40,000.

0:56:370:56:40

As far as the sale figure is concerned,

0:56:400:56:42

I would expect the property to achieve around about £40,000.

0:56:420:56:47

With a total spend of £29,000,

0:56:470:56:50

that would give Chris a pre-tax profit of 11,000.

0:56:500:56:54

Not bad at all. But Chris saw this as a letting opportunity

0:56:540:56:57

so let's get those rental valuations.

0:56:570:57:00

If I was putting this property on the market,

0:57:000:57:01

I would suggest an asking price of £325 per calendar month.

0:57:010:57:06

Rental value - I would expect to achieve

0:57:060:57:08

something around £300 - £325 per calendar month.

0:57:080:57:12

Yeah, I'm really pleased with those figures.

0:57:120:57:14

I'm still planning to rent it out but if I find some more property,

0:57:140:57:19

then I might actually sell it and start again.

0:57:190:57:22

I've had enquiries of £300 so, yeah, I would go with that.

0:57:220:57:28

In fact, since filming, Chris has rented the house out

0:57:300:57:32

at £375 per calendar month,

0:57:320:57:35

giving him a yield of over 15%. And it has obviously inspired Chris

0:57:350:57:40

to carry on, although he has perhaps learnt a few lessons.

0:57:400:57:44

My next project would be to buy another house,

0:57:440:57:47

perhaps a little bit closer to where I live now,

0:57:470:57:49

which makes it a little bit easier for travelling.

0:57:490:57:53

Well, there's plenty more properties being sold up and down the country.

0:57:560:57:59

Yes, so for more action from the auctions, join us next time.

0:57:590:58:02

-Yes, we look forward to seeing you then. Goodbye.

-Goodbye.

-Goodbye.

0:58:020:58:05

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