0:00:02 > 0:00:04Hello. The property markets are ever-changing.
0:00:04 > 0:00:06They can be up, down. Martin, as we know, they're never dull.
0:00:06 > 0:00:10No, it's hard to keep up sometimes with fluctuating market conditions,
0:00:10 > 0:00:15changes in building regulations and planning approval permissions.
0:00:15 > 0:00:19Well, to help us keep up, we're being joined by Dion Dublin.
0:00:19 > 0:00:20- Hello! - Yes, yeah. Great to be here.
0:00:20 > 0:00:23People will know me as just being a footballer,
0:00:23 > 0:00:24but my passion runs very strong
0:00:24 > 0:00:25when it comes to property
0:00:25 > 0:00:28and I'm so excited to be here on Homes Under The Hammer.
0:00:54 > 0:00:57Well, a good place to start looking for a property is the auctions.
0:00:57 > 0:00:59Yes, you need to do your research,
0:00:59 > 0:01:02but there are bargains to be had, if you know what you're looking for.
0:01:02 > 0:01:04So, let's take a look at the properties on today's show.
0:01:05 > 0:01:07In Cornwall, will this rundown cottage
0:01:07 > 0:01:10have people beating a path to its front door?
0:01:10 > 0:01:11Interesting... Argh!
0:01:11 > 0:01:13Interesting...
0:01:13 > 0:01:14Argh!
0:01:15 > 0:01:19In London, could opportunity come knocking for a novice renovator?
0:01:19 > 0:01:22Paint the wall, change the carpet, put some curtains up.
0:01:22 > 0:01:24I mean, that really is it.
0:01:26 > 0:01:30And in Stoke, will this terraced house have me hitting the roof?
0:01:30 > 0:01:32There is a hole in the ceiling.
0:01:32 > 0:01:35Somebody may have trod in the wrong place and made that hole itself.
0:01:36 > 0:01:39All these properties have been sold at auction.
0:01:39 > 0:01:41We'll find out who bought them and what they paid for them
0:01:41 > 0:01:43when they went under the hammer.
0:01:43 > 0:01:45It's now yours, sir. Well done.
0:01:51 > 0:01:54I'm in Cornwall, in the lovely little village of Probus,
0:01:54 > 0:01:57six-and-a-half miles north of Truro.
0:01:57 > 0:01:59In the 18th and 19th centuries,
0:01:59 > 0:02:03the area developed around the tin mining industry.
0:02:03 > 0:02:05This generated the wealth that built homes
0:02:05 > 0:02:09and, in many cases, the rocks that homes were built from.
0:02:09 > 0:02:13So, on this little street of characterful period cottages,
0:02:13 > 0:02:16I'm hoping to find something similar.
0:02:16 > 0:02:19And, you know what? Look at this...
0:02:19 > 0:02:22Two bedrooms and a lot more.
0:02:22 > 0:02:26The guide price was 125,000 to 150,000 quid.
0:02:26 > 0:02:29Broad range. Let's find out if it was worth it...
0:02:33 > 0:02:35Whoa...!
0:02:35 > 0:02:37Right...
0:02:40 > 0:02:42Shut the door, first of all. Erm...
0:02:42 > 0:02:45Scary electrics. They are going to need replacing.
0:02:45 > 0:02:49But then, the moment that you walk through the door you realise
0:02:49 > 0:02:50probably so is everything else.
0:02:50 > 0:02:53Well, interesting... Argh!
0:02:53 > 0:02:54Interesting...
0:02:54 > 0:02:55Argh!
0:02:56 > 0:02:59That'll do. Yeah, interesting layout.
0:02:59 > 0:03:02We've got a sort of living room area over that side
0:03:02 > 0:03:03and then another living room over this side.
0:03:03 > 0:03:06But look at the height. Not ideal.
0:03:06 > 0:03:08Big fireplace there. Open fire, which is lovely.
0:03:08 > 0:03:11Because that's exactly the kind of character you want in a house like this.
0:03:11 > 0:03:17It clearly hasn't been touched for a very long time.
0:03:17 > 0:03:18Erm...
0:03:21 > 0:03:23Let's carry on into the kitchen.
0:03:26 > 0:03:28So, first impressions...
0:03:28 > 0:03:32Well, there's no lack of character, though the charm isn't so obvious.
0:03:32 > 0:03:34And as for upgrading this place,
0:03:34 > 0:03:38already the fact that it will be an expensive process is unavoidable.
0:03:38 > 0:03:41Just like whacking your head on the roof beam.
0:03:42 > 0:03:44If you're more than five-and-a-half foot,
0:03:44 > 0:03:46I think that would get you down after a while.
0:03:46 > 0:03:48But another cracking door.
0:03:48 > 0:03:50HE CLEARS HIS THROAT
0:03:50 > 0:03:52Kitchen, though, surprisingly...
0:03:53 > 0:03:54..a good size.
0:03:54 > 0:03:56You wouldn't want to cook in here at the moment,
0:03:56 > 0:03:59but it's a good space. I like it.
0:03:59 > 0:04:03I'm kind of wondering what's underneath these ceilings.
0:04:03 > 0:04:06But then, through into something quite unusual.
0:04:06 > 0:04:07Look at this...
0:04:07 > 0:04:10I guess it isn't part of the original house,
0:04:10 > 0:04:13because the ceiling height is so much higher.
0:04:13 > 0:04:17You know, you imagine nice patio windows looking out onto the garden.
0:04:17 > 0:04:19Another radiator in an unusual place.
0:04:19 > 0:04:22I suppose you could call it underfloor heating.
0:04:23 > 0:04:24That was bad!
0:04:24 > 0:04:27Over here, though, is a bookshelf.
0:04:27 > 0:04:30Or is it just a bookshelf?
0:04:32 > 0:04:33Nope.
0:04:33 > 0:04:35It's another door.
0:04:38 > 0:04:40There is another odd little room at the back.
0:04:40 > 0:04:42In fact, these two rooms in the kitchen
0:04:42 > 0:04:46are in an extension at the rear of the original cottage
0:04:46 > 0:04:49that is accessed by a very steep step.
0:04:49 > 0:04:52It might increase the space, but it's definitely not a logical layout.
0:04:53 > 0:04:56I really do not know what I am going to find...
0:04:58 > 0:05:00But that's a good start.
0:05:00 > 0:05:02That is inspired. Erm...
0:05:03 > 0:05:06OK, a radiator acting as a banister.
0:05:06 > 0:05:09Well, hey, why not? It's a good use of space, I guess.
0:05:09 > 0:05:12Upstairs, two bedrooms. We'll explore that one in a minute.
0:05:12 > 0:05:15But over this side, at least you've got the bathroom in the right place.
0:05:15 > 0:05:16That will need replacing.
0:05:16 > 0:05:20But then, towards the front, the second of the bedrooms
0:05:20 > 0:05:23and, well, I mean, a nice bit of storage.
0:05:23 > 0:05:25Erm...
0:05:25 > 0:05:27It's not big. But then, nothing is.
0:05:27 > 0:05:32I think you could really make a dramatic difference upstairs here by taking out this.
0:05:32 > 0:05:34You know, open it up right up to the eaves.
0:05:34 > 0:05:36That would be fantastic.
0:05:36 > 0:05:40Basically, you are going to have to repair everything, anyway, so why the heck not?
0:05:40 > 0:05:42But look what we are working with here...
0:05:42 > 0:05:48Look at the thickness of the walls on that window-sort-of-sill there.
0:05:48 > 0:05:49Wow.
0:05:49 > 0:05:50It's one heck of a house.
0:05:52 > 0:05:57There's quirks aplenty here and some furnishings from a bygone era.
0:05:57 > 0:06:00Well, into the master bedroom and...
0:06:02 > 0:06:04..I guess I shouldn't have expected anything other than,
0:06:04 > 0:06:07well, something pretty unique.
0:06:07 > 0:06:09And you certainly get that.
0:06:09 > 0:06:14It wouldn't look out of place in an 18th-century galleon, this.
0:06:14 > 0:06:17Not sure about a little cottage in Cornwall.
0:06:18 > 0:06:19So, plenty of oddities.
0:06:19 > 0:06:23But they're not all restricted to the interior of the cottage.
0:06:25 > 0:06:27Well, no garden to speak of at the front of the property.
0:06:27 > 0:06:29But the back here, somewhere back there,
0:06:29 > 0:06:31I think there is a reasonable-sized plot.
0:06:31 > 0:06:35You've also got this garage and, fantastic, a greenhouse on top of it.
0:06:35 > 0:06:37You don't often see that.
0:06:37 > 0:06:39But I do note this, while I'm out here.
0:06:39 > 0:06:41This is a borehole,
0:06:41 > 0:06:45which I think is somebody taking out a sample of whatever this is made of.
0:06:45 > 0:06:48Because, of course, we are in mundic territory,
0:06:48 > 0:06:52so this could well be an extension that's made of mundic block,
0:06:52 > 0:06:53which is a problem.
0:06:55 > 0:06:59From around 1900 to around the mid-1960s,
0:06:59 > 0:07:03many properties in Devon and Cornwall were built using concrete
0:07:03 > 0:07:07made from aggregate from mining waste, or mundic blocks.
0:07:07 > 0:07:10Unfortunately, chemically speaking, it's not stable.
0:07:10 > 0:07:13If the concrete was made from china clay,
0:07:13 > 0:07:16also mined in this area, then that would be a different story.
0:07:16 > 0:07:18And it's likely to be OK if you need a mortgage.
0:07:18 > 0:07:21But to find out which you've got, you'll need to do a test,
0:07:21 > 0:07:23hence the borehole.
0:07:23 > 0:07:26To find out more about this quirky house,
0:07:26 > 0:07:28guided at between 125,000 and 150,000,
0:07:28 > 0:07:31an agent from the auctioneers, who sold the house,
0:07:31 > 0:07:33came along to tell us more.
0:07:33 > 0:07:35This is a classic auction property.
0:07:35 > 0:07:36You walk in through the front door
0:07:36 > 0:07:38and you know that everything needs doing to it.
0:07:38 > 0:07:43And it offers scope and potential to create what could be a stunning, desirable property.
0:07:43 > 0:07:46Albeit with plenty of money thrown at it.
0:07:46 > 0:07:49But what sort of value would the house be worth, once renovated?
0:07:49 > 0:07:52If the property was refurbished to a reasonably high standard
0:07:52 > 0:07:54in its existing footprint and its current layout,
0:07:54 > 0:07:57then I'd expect that to be put on the market
0:07:57 > 0:07:59for somewhere in the region of £250,000.
0:07:59 > 0:08:02If the property was placed on the rental market,
0:08:02 > 0:08:04once again, refurbished to a reasonably high standard,
0:08:04 > 0:08:08you could expect to achieve somewhere in the region of £750 per calendar month.
0:08:09 > 0:08:13Well, there's no doubt this is one of the quirkiest properties I've ever visited.
0:08:13 > 0:08:16But you know what? Fantastic location,
0:08:16 > 0:08:19enormous amounts of potential and oozing charm.
0:08:19 > 0:08:22Somebody will definitely have fallen in love with it
0:08:22 > 0:08:24when it went under the hammer...
0:08:27 > 0:08:29Lot 58.
0:08:29 > 0:08:32So, 125 straight in. 125.
0:08:32 > 0:08:34It's going to make 125 all day long.
0:08:34 > 0:08:37At 125. A choice of hands. I'll take that one. 125.
0:08:38 > 0:08:40126. At 126.
0:08:40 > 0:08:41128.
0:08:41 > 0:08:42128.
0:08:42 > 0:08:44130. At 130. Here we go. 130.
0:08:44 > 0:08:46132.
0:08:46 > 0:08:47132.
0:08:47 > 0:08:48134.
0:08:48 > 0:08:50134.
0:08:50 > 0:08:51136. 136.
0:08:51 > 0:08:53138. 138.
0:08:53 > 0:08:54This is exciting. 138.
0:08:54 > 0:08:55140. At 140.
0:08:55 > 0:09:00At 140. I've got the gentleman in the alleyway here has got 140.
0:09:00 > 0:09:04I'm asking for 1. I'd take 500, if it would help either of you.
0:09:04 > 0:09:07At 140, first, second, third and last time.
0:09:07 > 0:09:11Are you sure and done? Here it is, down here at 140 and out.
0:09:12 > 0:09:14Congratulations, sir. The gentleman has it.
0:09:14 > 0:09:18The successful bidders getting the lot for £140,000
0:09:18 > 0:09:20were Michael and Julie.
0:09:20 > 0:09:22But it's not for them.
0:09:22 > 0:09:26They were bidding on behalf of their sons, Kieran on the right, and Miles.
0:09:26 > 0:09:29Kieran is a sports teaching assistant,
0:09:29 > 0:09:32while Miles is a qualified PE teacher.
0:09:32 > 0:09:35So, are these the people to get this place back into shape?
0:09:36 > 0:09:38- Miles, Kieran, great to meet you both.- Good to meet you.
0:09:38 > 0:09:42- What an interesting property! - Yeah, I know. Amazing, isn't it?
0:09:42 > 0:09:45Yeah, absolutely one of the quirkiest I've seen.
0:09:45 > 0:09:47Tell me why you wanted to buy it.
0:09:47 > 0:09:51Basically, me and Kieran have had a bit of savings
0:09:51 > 0:09:53we've had from when we were younger
0:09:53 > 0:09:57and we'd like to get a bit more of our independence
0:09:57 > 0:09:59and we thought, oh, this property came up,
0:09:59 > 0:10:02we know the area really well, we went to school in the area,
0:10:02 > 0:10:06so we thought, well, let's go and have a look, kind of thing.
0:10:06 > 0:10:08- And ended up buying it.- Yeah.
0:10:08 > 0:10:10So, you know the area.
0:10:10 > 0:10:13Did you know the house, specifically?
0:10:13 > 0:10:16No, not specifically. We've never actually seen this house.
0:10:16 > 0:10:20So, when we saw it online, it was quite interesting.
0:10:20 > 0:10:22So, we thought we'd have a little look at it and, yeah.
0:10:22 > 0:10:24- What did you think when you came inside?- Interesting.
0:10:24 > 0:10:27- Bit shocked, really, when you walk through the door, isn't it?- It is.
0:10:27 > 0:10:29And as you progress further into the house,
0:10:29 > 0:10:31it doesn't get any less surprising.
0:10:31 > 0:10:34It gets a little bit worse, doesn't it?
0:10:35 > 0:10:38The brothers, who both teach in nearby Camborne,
0:10:38 > 0:10:41plan to make this their home and are looking at the renovation
0:10:41 > 0:10:45taking six months to a year to complete.
0:10:45 > 0:10:48And, of course, they're aiming to start during their summer holidays.
0:10:48 > 0:10:53# School's out for summer
0:10:55 > 0:11:00# School's been blown to pieces. #
0:11:03 > 0:11:06The brothers have already started the planning process
0:11:06 > 0:11:08to demolish and replace the rear extension,
0:11:08 > 0:11:12which they will then dig down to the same level as the original cottage,
0:11:12 > 0:11:15getting rid of those awkward changes in level.
0:11:15 > 0:11:16But then what?
0:11:16 > 0:11:19As you see, at the moment, the stairs are here.
0:11:19 > 0:11:23- We're looking to relocate them to the extension out the back...- OK.
0:11:23 > 0:11:26..and make this into a completely open-plan lounge.
0:11:26 > 0:11:27And then you walk straight out the back,
0:11:27 > 0:11:32where it's levelled off, into an open-plan kitchen-diner,
0:11:32 > 0:11:35with the stairs at the back running up the back wall.
0:11:35 > 0:11:37And then a third bedroom up top,
0:11:37 > 0:11:41making these two bedrooms here a lot bigger, with a big family bathroom.
0:11:41 > 0:11:45Replacing the existing ramshackled extension with a new structure
0:11:45 > 0:11:47will also solve that mundic problem.
0:11:47 > 0:11:52Plus, they will improve the flow of the house no end by bringing it down to the cottage level,
0:11:52 > 0:11:56which leads me on to another potential problem...
0:11:56 > 0:11:58Now, you're both, you know, good-sized lads.
0:11:58 > 0:12:01- And a lot of the ceilings and doorways are a bit small.- Yeah.
0:12:01 > 0:12:03What are you going to do about that?
0:12:03 > 0:12:07Maybe looking at moving the beams, raising the beams up, maybe.
0:12:07 > 0:12:09Because there's quite a lot of room upstairs with the roof.
0:12:09 > 0:12:11So, maybe raising them up.
0:12:12 > 0:12:15Well, big plans will need big money.
0:12:15 > 0:12:19And the brothers have a budget of around £40,000,
0:12:19 > 0:12:22which will be financed partly from Kieran and Miles's savings,
0:12:22 > 0:12:26as well as help from Mum, Dad and other family members.
0:12:26 > 0:12:28Everyone will be pitching in to help out.
0:12:28 > 0:12:32But, for the brothers, this is their first ever renovation project.
0:12:32 > 0:12:34Best of luck, lads.
0:12:34 > 0:12:36I have actually previously done some work.
0:12:36 > 0:12:39Mum and Dad bought a house in this village three years ago,
0:12:39 > 0:12:41which was in sort of the same sort of condition.
0:12:41 > 0:12:45And I did a lot of work there, after I finished university,
0:12:45 > 0:12:48helped renovate it up to a good standard.
0:12:48 > 0:12:51So, I've got a bit of experience helping out
0:12:51 > 0:12:54and we've got lots of friends that will lend hands
0:12:54 > 0:12:57and help to gut it and get us on the way.
0:12:57 > 0:13:00So, how excited are you to embark on your first project?
0:13:00 > 0:13:02- I think we're massively excited, aren't we?- Yeah.
0:13:02 > 0:13:05It's nice to get on the ladder and it's an area we know really well,
0:13:05 > 0:13:09so, no, no, it should be a really good project.
0:13:09 > 0:13:11- Great. Well, congratulations to you both.- Thank you very much.
0:13:11 > 0:13:14- I look forward to seeing how you transform it.- Thank you.
0:13:17 > 0:13:22Well, what a project for brothers Miles and Kieran to be embarking on.
0:13:22 > 0:13:26But how fantastic they're doing this as their home.
0:13:28 > 0:13:30A few challenges ahead. How will they get on?
0:13:30 > 0:13:32You can find out later in the show.
0:13:37 > 0:13:39It's from the green fields of Cornwall
0:13:39 > 0:13:41to the oldest cricket green in the world,
0:13:41 > 0:13:44right here in Mitcham, south west London.
0:13:44 > 0:13:47But I'm batting for this area for a different reason...
0:13:47 > 0:13:51Its great transport links and 18-minute train journey from London Victoria
0:13:51 > 0:13:53and its relative affordability.
0:13:53 > 0:13:58With purpose-built flats, I have certain expectations.
0:13:58 > 0:14:01You need a good layout, good proportional rooms
0:14:01 > 0:14:05and practical use of space for living and for storage.
0:14:05 > 0:14:07So, I really do have high hopes
0:14:07 > 0:14:10for this one-bed, purpose-built maisonette.
0:14:10 > 0:14:13Well, I like it that it's smart and clean on the outside
0:14:13 > 0:14:17and, also, I really like its guide price of £95,000 plus.
0:14:17 > 0:14:20That's not bad for a property in London.
0:14:20 > 0:14:22There's only one way to find out what it's like.
0:14:22 > 0:14:24That's to head inside.
0:14:25 > 0:14:28With the property guided at £95,000, this close in London,
0:14:28 > 0:14:30it could be very popular indeed.
0:14:30 > 0:14:32Let's take a look.
0:14:32 > 0:14:36Well, I definitely see this as a positive, having your own front door.
0:14:36 > 0:14:39Though, you do have quite a few steps to climb before you get up here.
0:14:39 > 0:14:41Good-sized bedroom at the back.
0:14:41 > 0:14:42Kitchen.
0:14:42 > 0:14:44Well, not a bad space.
0:14:44 > 0:14:47And it's got this rather big, old arch here.
0:14:47 > 0:14:49I don't know whether I like it or not.
0:14:49 > 0:14:52The kitchen certainly needs changing. It's all a bit dated.
0:14:52 > 0:14:56You could definitely change this and make it a little more modern and contemporary.
0:14:57 > 0:15:00So far, I'm seeing a nice, self-contained flat
0:15:00 > 0:15:03and, yes, it is a bit tired and dated,
0:15:03 > 0:15:05but I can't see anything that's putting me off.
0:15:05 > 0:15:07Well, the bathroom is not bad.
0:15:07 > 0:15:10I think all I would do in here would be to clean it
0:15:10 > 0:15:12and replace the lino on the floor.
0:15:12 > 0:15:15And into the living area.
0:15:15 > 0:15:19Now, this is what I love about these purpose-built properties,
0:15:19 > 0:15:20they just feel so easy.
0:15:20 > 0:15:23It seems as though you'd need to just paint the wall,
0:15:23 > 0:15:26change the carpets, put some curtains up.
0:15:26 > 0:15:28I mean, that really is it.
0:15:28 > 0:15:30You have got electric heaters,
0:15:30 > 0:15:33so I'm thinking there's possibly no gas at all in this block.
0:15:33 > 0:15:36If there were, it would be good to install a boiler,
0:15:36 > 0:15:38gas central heating, that would be the way to go.
0:15:38 > 0:15:41But something you might need to think about repairing...
0:15:41 > 0:15:43I think the windows are all broken.
0:15:43 > 0:15:45Looking at them, they could actually do with replacing.
0:15:45 > 0:15:49But, overall, this is a really, nearly ready-to-go flat
0:15:49 > 0:15:51and I really like it.
0:15:54 > 0:15:56It's not glamorous or full of character,
0:15:56 > 0:15:59but it does exactly what it says on the tin.
0:15:59 > 0:16:02And what's more, it needs very little work doing to it.
0:16:04 > 0:16:07But, as always, it's the details, when buying a property,
0:16:07 > 0:16:09you have to pay attention to.
0:16:12 > 0:16:15With so many properties, especially flats,
0:16:15 > 0:16:19this is the time one needs to think about leasehold
0:16:19 > 0:16:24and you sometimes need to keep an eye on how many years are actually left on the lease,
0:16:24 > 0:16:26because anything less than 70 years,
0:16:26 > 0:16:31well, you may start getting into issues with mortgages and resale and things like that.
0:16:31 > 0:16:37But this property, well, it seems, has a 999-year lease.
0:16:37 > 0:16:39So, many generations to come yet
0:16:39 > 0:16:43before anyone needs to worry about renewing this lease.
0:16:43 > 0:16:46That's if the property is still standing in 999 years.
0:16:46 > 0:16:49Gosh, what is the world going to be like then?
0:16:49 > 0:16:53Will we be living in pods in the sky or in big glass-domed eco-houses?
0:16:54 > 0:16:56I'll shut up now.
0:16:57 > 0:17:03# Is there life on Mars? #
0:17:05 > 0:17:08Well, before we start talking about pods under the hammer,
0:17:08 > 0:17:10let's find out what a local estate agent
0:17:10 > 0:17:12thinks of this one-bed maisonette
0:17:12 > 0:17:15with a guide price of £95,000 plus.
0:17:15 > 0:17:19This property doesn't require too much modernisation.
0:17:19 > 0:17:20It's actually a good property.
0:17:20 > 0:17:22I think maybe the kitchen could be redone.
0:17:22 > 0:17:24But, on the whole, I'm quite impressed.
0:17:24 > 0:17:26This property will appeal to investors.
0:17:26 > 0:17:28The rental market in this area is quite strong.
0:17:28 > 0:17:30I think, also, first-time buyers,
0:17:30 > 0:17:33as the property prices in this area are quite low.
0:17:33 > 0:17:36OK, now, let's take a look at the resale figures first.
0:17:36 > 0:17:40Refurbished, this property would sell for approximately £150,000.
0:17:40 > 0:17:42And what about rental values?
0:17:42 > 0:17:44This property would rent for approximately
0:17:44 > 0:17:46£750 per calendar month.
0:17:47 > 0:17:50I like this small and well-formed property
0:17:50 > 0:17:53and I like it all the more for its guide price.
0:17:53 > 0:17:57Around London, there just isn't really anything in that price bracket,
0:17:57 > 0:18:00especially a property that doesn't need much work doing to it
0:18:00 > 0:18:02and with its own front door.
0:18:02 > 0:18:05Let's see who spotted this potential bargain
0:18:05 > 0:18:09and if it stayed a bargain when it went under the hammer.
0:18:13 > 0:18:16One-bed, purpose-built flat. See it on the photograph.
0:18:16 > 0:18:19100,000. Not going to go for 100.
0:18:19 > 0:18:23Can't get anything in London... 100,000.
0:18:24 > 0:18:25I've got 100,000 in the aisle.
0:18:25 > 0:18:27101?
0:18:27 > 0:18:28101 on my left.
0:18:28 > 0:18:29102.
0:18:29 > 0:18:31103.
0:18:31 > 0:18:32104.
0:18:32 > 0:18:34105.
0:18:34 > 0:18:35106.
0:18:35 > 0:18:36107.
0:18:37 > 0:18:38108.
0:18:38 > 0:18:42After a sluggish start, the bids are now flying in.
0:18:42 > 0:18:45We rejoin at 125,000...
0:18:45 > 0:18:46125.
0:18:46 > 0:18:48126.
0:18:48 > 0:18:49127.
0:18:49 > 0:18:50128.
0:18:50 > 0:18:52129.
0:18:52 > 0:18:53130.
0:18:53 > 0:18:54131.
0:18:54 > 0:18:56130 with you.
0:18:56 > 0:19:00First time. Second time. Third and last time.
0:19:00 > 0:19:01If you're all done?
0:19:01 > 0:19:03Sold 130.
0:19:05 > 0:19:09The Mitcham flat sold for 35,000 over the guide price to Craig.
0:19:09 > 0:19:11And standby...
0:19:11 > 0:19:14This might be our youngest property developer yet.
0:19:14 > 0:19:15Matilda.
0:19:15 > 0:19:17While Matilda checked out the flat,
0:19:17 > 0:19:21dad Craig filled us in on what is a pretty long-term investment.
0:19:22 > 0:19:24- Craig, congratulations.- Thank you.
0:19:24 > 0:19:27- So, you got the flat you wanted on auction day.- Yes, I did.
0:19:27 > 0:19:30- How much research did you do? - I went to the catalogue.
0:19:30 > 0:19:33I looked at all the properties that I thought I could afford,
0:19:33 > 0:19:35that I might have a chance of getting.
0:19:35 > 0:19:36I went round, did the viewings.
0:19:36 > 0:19:41But, to be honest, there was only about three or four that was kind of in my price range.
0:19:41 > 0:19:44So, did you pay as much as you thought you would on the day or a little bit less?
0:19:44 > 0:19:46It took me right to my limit.
0:19:46 > 0:19:49I was hoping, hoping for slightly less.
0:19:49 > 0:19:51But I kind of thought, 130...
0:19:51 > 0:19:53Yeah, it's about right.
0:19:53 > 0:19:57So, what's the plan? Why have you decided to take this on?
0:19:57 > 0:20:00The plan was erm...
0:20:00 > 0:20:03It's all about my daughter, Matilda.
0:20:03 > 0:20:07I was speaking to other parents and they were talking about when their children get older
0:20:07 > 0:20:10and not being able to afford property in London.
0:20:10 > 0:20:13And I had some money in the bank, it wasn't earning any interest
0:20:13 > 0:20:15and I was just kind of slowly chipping away at it.
0:20:15 > 0:20:17And I thought I need to invest it.
0:20:17 > 0:20:19So, if I buy a property now,
0:20:19 > 0:20:23we can rent it out and it will be there for Matilda when she's older.
0:20:23 > 0:20:24So, what does she think of this property?
0:20:24 > 0:20:27I've seen her walking around today and getting all excited.
0:20:27 > 0:20:30- She's very excited.- Does she understand that this is for her?
0:20:30 > 0:20:32I think she does. I think erm...
0:20:32 > 0:20:36I'm not sure she understands sort of the long-term strategy of it.
0:20:36 > 0:20:39I think she's quite excited to think she owns her own property
0:20:39 > 0:20:44and she was saying, "Can we use this as, like, a playhouse and I can bring my friends over?"
0:20:44 > 0:20:45Kind of, but...
0:20:45 > 0:20:47Is she going to get involved in this at all?
0:20:47 > 0:20:50Yeah, I think she's planning on doing a lot of the painting.
0:20:50 > 0:20:53- Oh, amazing! - Yeah, I think she wants to help out.
0:20:53 > 0:20:56I love it. Matilda might have her paintbrush at the ready,
0:20:56 > 0:21:00but, of course, it's going to be a long time before she can take charge of the flat.
0:21:00 > 0:21:01But Craig is a man who thinks ahead.
0:21:01 > 0:21:05So, of course, he has a plan, in the shape of his friend,
0:21:05 > 0:21:07who is also handy at refurbishing property.
0:21:07 > 0:21:10My friend Keith, hopefully, is going to move in.
0:21:10 > 0:21:13If he does, we're not going to do too much work to it.
0:21:13 > 0:21:14We'll just get it liveable
0:21:14 > 0:21:16and then he's going to rent it, sort of mate's rates,
0:21:16 > 0:21:18and just live in it for a while.
0:21:18 > 0:21:21Then we have the option, sort of further down the line,
0:21:21 > 0:21:23maybe spend a bit more money on it,
0:21:23 > 0:21:26maybe look at putting a boiler in, new kitchen, new bathroom, that sort of thing.
0:21:26 > 0:21:28And then, maybe sell it on.
0:21:29 > 0:21:33There is certainly plenty of time for this property to add capital value.
0:21:33 > 0:21:36In the meantime, Craig is getting a return on that money,
0:21:36 > 0:21:39that would otherwise just be languishing in the bank.
0:21:39 > 0:21:41And Keith has somewhere to live at a reasonable cost.
0:21:41 > 0:21:43It seems like a win-win all round.
0:21:43 > 0:21:47Craig's simple refurbishment plans have a budget of around £2,000
0:21:47 > 0:21:49and a timescale of six months,
0:21:49 > 0:21:52which is when his friend Keith is able to move in.
0:21:54 > 0:21:56So, I've talked to Craig about his plans.
0:21:56 > 0:21:59But what about the real boss around here?
0:22:01 > 0:22:04I think it's quite good, but it needs a little bit of work.
0:22:04 > 0:22:06So, what don't you like about it?
0:22:06 > 0:22:09I don't really like the kitchen,
0:22:09 > 0:22:13because I don't really like the boards
0:22:13 > 0:22:18and most of the things are not working
0:22:18 > 0:22:20and it's not that nice.
0:22:20 > 0:22:23So, what colour do you think you would like to paint this?
0:22:23 > 0:22:27Because your dad did tell me that he might get you involved
0:22:27 > 0:22:29and you might help him out a little bit.
0:22:29 > 0:22:33Yes. I told him that I might do it a little bit pinky
0:22:33 > 0:22:36or a little bit purply or a little bit white.
0:22:36 > 0:22:39- So, have you ever painted any walls before?- Yes.
0:22:39 > 0:22:41And would you say you're quite good?
0:22:41 > 0:22:42Yes.
0:22:42 > 0:22:45So, now you've seen this flat for the first time...
0:22:46 > 0:22:49..what do you think it's going to be like
0:22:49 > 0:22:51when your dad has made it look fantastic?
0:22:51 > 0:22:55Well, I think it will be quite nice. It will be a nicer place to live in.
0:22:55 > 0:22:58And I think it will be much brighter and nicer
0:22:58 > 0:23:00and you can use things a lot more.
0:23:00 > 0:23:02Well, I have loved talking to you today
0:23:02 > 0:23:06and I cannot wait to see if you do paint it a bit pink and a bit purple.
0:23:06 > 0:23:08Give me five.
0:23:08 > 0:23:09Matilda, good luck.
0:23:09 > 0:23:12And you're a very lucky girl to have such a lovely daddy
0:23:12 > 0:23:15that's bought you such a nice place for when you're older.
0:23:17 > 0:23:19Well, if all goes to plan,
0:23:19 > 0:23:22it seems that Craig can kill two birds with one stone.
0:23:22 > 0:23:27Little Matilda has the start of a healthy deposit for her first home when she's an adult.
0:23:27 > 0:23:30But, in the meantime, Craig's pal Keith,
0:23:30 > 0:23:34well, he gets to live with mate's rates rental.
0:23:34 > 0:23:36But will Matilda get her way
0:23:36 > 0:23:40and turn this into her pinky-purple play palace?
0:23:40 > 0:23:43You can join us later in the show to find out.
0:23:45 > 0:23:48Coming up, in Stoke, this house might need its security beefing up.
0:23:48 > 0:23:52It has one piece of Perspex on the inside
0:23:52 > 0:23:54and it's only held in with screws.
0:23:55 > 0:23:59In London, it looks like Matilda is preparing to be a landlord.
0:23:59 > 0:24:00If he doesn't look after it,
0:24:00 > 0:24:04I'm going to give him one piece of my mind!
0:24:07 > 0:24:10But first, back to the lovely Cornish village of Probus near Truro,
0:24:10 > 0:24:13where earlier we met Miles, here on the left,
0:24:13 > 0:24:15and his brother Kieran,
0:24:15 > 0:24:19who bought this two-bed characterful cottage for 140,000.
0:24:19 > 0:24:22The lads, who live in nearby Camborne and know the area well,
0:24:22 > 0:24:26see this as the perfect place to set up a new home.
0:24:26 > 0:24:29But character wasn't the only thing it had.
0:24:29 > 0:24:31Run-down, dilapidated and falling apart
0:24:31 > 0:24:35were a few of the other ways to describe it.
0:24:35 > 0:24:39But Miles is a PE teacher and Kieran a sports teaching assistant,
0:24:39 > 0:24:42so what better pair to whip this place into shape?
0:24:44 > 0:24:46When we saw it online, it was quite interesting.
0:24:46 > 0:24:48So, we thought we'd have a little look at it and, yeah.
0:24:48 > 0:24:51- What did you think when you came inside?- Interesting.
0:24:51 > 0:24:53Yeah, very quirky.
0:24:54 > 0:24:57Bit shocked, really, when you walk through the door, isn't it?
0:24:57 > 0:24:59It is. And as you progress further into the house,
0:24:59 > 0:25:01it doesn't get any less surprising.
0:25:01 > 0:25:03It gets a little bit worse, doesn't it?
0:25:03 > 0:25:07Despite being first-time renovators, they're aiming big,
0:25:07 > 0:25:09with plans not only to renovate the main house,
0:25:09 > 0:25:13but also to demolish the rear single-storey extension
0:25:13 > 0:25:17and, in its place, erect a new double-storey extension
0:25:17 > 0:25:20and add in a third bedroom in the process.
0:25:20 > 0:25:23All hopefully done in a timescale of six months to a year
0:25:23 > 0:25:26and for a budget of £40,000.
0:25:26 > 0:25:30But it was 20 months later when we returned.
0:25:30 > 0:25:32And the result...
0:25:32 > 0:25:36From the outside, with new rendering and a new front door and windows,
0:25:36 > 0:25:37it looks so much better.
0:25:37 > 0:25:39And inside?
0:25:42 > 0:25:43Whoa!
0:25:43 > 0:25:45Top marks, lads.
0:25:45 > 0:25:48The two front rooms and downstairs loo have been knocked through
0:25:48 > 0:25:51to create one gorgeous-sized living room.
0:25:54 > 0:25:57And at the rear, there's now a great-looking kitchen.
0:26:01 > 0:26:03Choose one of the two sets of French doors
0:26:03 > 0:26:05to step into the newly-cleared garden
0:26:05 > 0:26:10and you get to see the difference with this fantastic two-storey extension.
0:26:10 > 0:26:12But before they got to this stage,
0:26:12 > 0:26:15there was a lot of greenery to be dealt with.
0:26:15 > 0:26:19The extension, it started off with a big overhaul of the garden,
0:26:19 > 0:26:23because it was heavily overgrown with big trees.
0:26:23 > 0:26:26So, we spent about a month actually clearing out the garden.
0:26:26 > 0:26:30And, of course, that mundic block extension had to go as well.
0:26:30 > 0:26:33And then there was the awkward floor level changes
0:26:33 > 0:26:36between the front and back of the cottage to fix.
0:26:36 > 0:26:38We then had to dig the levels down to match it up
0:26:38 > 0:26:40with the front of the cottage.
0:26:40 > 0:26:43Once we got the levels down to the right height,
0:26:43 > 0:26:48we then got the foundations in and we also got the walls put in.
0:26:48 > 0:26:51So, that created the space for us to put in the two-storey extension.
0:26:51 > 0:26:55And inside, the extension houses the new third bedroom,
0:26:55 > 0:26:57along with a family bathroom.
0:26:59 > 0:27:02And with the removal of the old bathroom,
0:27:02 > 0:27:05the two front bedrooms are far more spacious,
0:27:05 > 0:27:07with the master now having an en-suite shower.
0:27:09 > 0:27:11This cottage is very quirky
0:27:11 > 0:27:14and I'm glad to see they've kept a character feel.
0:27:14 > 0:27:17The beams and vaulted ceilings in the upper rooms,
0:27:17 > 0:27:21along with lots of hardwood finishes, really works.
0:27:23 > 0:27:25And outside, fortunately, the walls of the garage
0:27:25 > 0:27:29were not made from that troublesome mundic brick, so that has been retained.
0:27:29 > 0:27:32But it looks like the greenhouse has disappeared.
0:27:32 > 0:27:34Or has it?
0:27:34 > 0:27:37The greenhouse is actually back at the farm.
0:27:37 > 0:27:40I think my mum wants to use it in her garden,
0:27:40 > 0:27:42if my dad pulls his finger out
0:27:42 > 0:27:44and actually does something in the garden for her.
0:27:45 > 0:27:48For first-timers, Miles and Kieran have done an amazing job,
0:27:48 > 0:27:51getting stuck into the renovation every spare moment.
0:27:51 > 0:27:55And they've no doubt learnt a few tricks of the trade as they went along.
0:27:55 > 0:27:58My role during this whole project has actually been quite hands-on,
0:27:58 > 0:28:00along with my brother and my dad.
0:28:00 > 0:28:05We tried to get ourselves involved as much as we can and do a lot of the work that we could.
0:28:05 > 0:28:09So, a lot of the work that you can see around the house, we have done ourselves.
0:28:09 > 0:28:14It's just been quite a long process and lots of weekends, evenings,
0:28:14 > 0:28:17lots of time spent up here, me and my dad and my brother.
0:28:17 > 0:28:20And lots of friends have come along and helped, so it's erm...
0:28:20 > 0:28:23I wouldn't say there's been any problems, just a long process
0:28:23 > 0:28:25and we're really glad with what we've got now.
0:28:26 > 0:28:30Obtaining planning permission to demolish and build the extension took six months.
0:28:30 > 0:28:32Then, with friends, family
0:28:32 > 0:28:36and some of Miles's rugby team pitching in to help with the renovation,
0:28:36 > 0:28:40it took a year to make this into a fantastic-looking home.
0:28:40 > 0:28:43We absolutely love the cottage, how it's turned out.
0:28:43 > 0:28:47I think it's a lot better than we first anticipated.
0:28:47 > 0:28:51It's a lovely place and can't wait to sort of move in.
0:28:53 > 0:28:56But looking at the high standard of finish here,
0:28:56 > 0:29:00I bet they've gone a bit over their £40,000 budget.
0:29:00 > 0:29:06I think we're more towards 60,000, with things like extra costings
0:29:06 > 0:29:11and we've gone for the higher spec sort of kitchen and bathroom suites,
0:29:11 > 0:29:12because we wanted to move in ourselves,
0:29:12 > 0:29:14we wanted it to look right for ourselves.
0:29:16 > 0:29:18Well, add that to their purchase price of £140,000
0:29:18 > 0:29:21and the brothers have spent a total of £200,000.
0:29:22 > 0:29:25Time to find out what two local property experts
0:29:25 > 0:29:28think of Miles and Kieran's hard work.
0:29:28 > 0:29:32Starting with the agent who first saw the property over a year and a half ago...
0:29:32 > 0:29:34I love what they've done to the property.
0:29:34 > 0:29:36The transformation is amazing.
0:29:36 > 0:29:38The construction type has been done to a high standard.
0:29:38 > 0:29:40The finishing, the architecture
0:29:40 > 0:29:42and carpentry details are stunning.
0:29:44 > 0:29:47The property is a classic village cottage.
0:29:48 > 0:29:52The back extension and conversion have been done very thoughtfully.
0:29:52 > 0:29:55The accommodation downstairs works well.
0:29:55 > 0:29:58The actual conversion has been fantastically done.
0:29:58 > 0:30:01Having spent £200,000 on the property,
0:30:01 > 0:30:04the brothers plan to move in and enjoy the house.
0:30:04 > 0:30:07But if they decided to sell, what could they expect to achieve?
0:30:07 > 0:30:08On the current market,
0:30:08 > 0:30:13I would value this property at an asking price of £280,000.
0:30:13 > 0:30:18This property would fetch somewhere in the region of between £340,000 and £350,000.
0:30:18 > 0:30:21And that would give the brothers a stunning pre-tax profit
0:30:21 > 0:30:24of between 80,000 and 150,000.
0:30:25 > 0:30:28The valuations are strikingly different,
0:30:28 > 0:30:32but that could be down to the uniqueness of the property.
0:30:32 > 0:30:34Properties in Probus vary greatly in price
0:30:34 > 0:30:38and it's difficult to be exact and pinpoint the figure it should be on the market for.
0:30:38 > 0:30:40But, I think, with a property like this and the wow factor
0:30:40 > 0:30:43will actually set this apart from the others.
0:30:43 > 0:30:45So, comparable properties don't come into it.
0:30:45 > 0:30:47That's why I think you could push it up to 350.
0:30:47 > 0:30:51All the way through, looking at around 250. That sort of mark.
0:30:51 > 0:30:54So, yeah, we're really pleased with both valuations.
0:30:54 > 0:30:57Well, the brothers seem very happy about that
0:30:57 > 0:30:59and if they ever decide to rent out,
0:30:59 > 0:31:05then they could expect a rental income of between £800 and £850 per calendar month,
0:31:05 > 0:31:08giving them an annual yield of just over 5%.
0:31:10 > 0:31:12I'm really pleased with the rental value
0:31:12 > 0:31:14but, as we're looking to move in,
0:31:14 > 0:31:16there's no real issue for that at the moment.
0:31:16 > 0:31:19Miles and Kieran are aiming to enjoy their new home
0:31:19 > 0:31:22and with help from their mum, Julie, and dad, Michael,
0:31:22 > 0:31:26they've managed to get themselves a lovely foothold on the property ladder.
0:31:26 > 0:31:31And they might even see themselves going off to auction for another little purchase...
0:31:31 > 0:31:32Yes, I think so.
0:31:33 > 0:31:35I think properties at auction,
0:31:35 > 0:31:39obviously, give you an opportunity to find hidden gems, really.
0:31:39 > 0:31:42And you can sort of polish them up and get outcomes like this one.
0:31:42 > 0:31:44So, yeah, definitely.
0:31:51 > 0:31:55Tunstall is a market town in the north west of Stoke-on-Trent.
0:31:55 > 0:32:00An open-air market operated near what is now the clock tower until 1858,
0:32:00 > 0:32:02when a covered market was built.
0:32:02 > 0:32:04Today, redeveloped and renovated,
0:32:04 > 0:32:07it is still an integral part of the town centre.
0:32:07 > 0:32:11The property I'm here to see today is a ten-minute walk from the market.
0:32:11 > 0:32:13It's a three-bed, mid-terraced house
0:32:13 > 0:32:16with a guide price of £40,000 plus.
0:32:16 > 0:32:20Now, the first thing that's caught my eye is the guttering on the front of the house.
0:32:20 > 0:32:22That would definitely need to be sorted out.
0:32:22 > 0:32:25But overall, it's a nice front garden here.
0:32:25 > 0:32:28A little bit of TLC will sort this out, no problem at all.
0:32:28 > 0:32:32That's the outside. I'm guessing the inside is a standard terraced house.
0:32:34 > 0:32:37OK, a hallway. I wasn't expecting that at all, actually.
0:32:37 > 0:32:38Nice, high ceiling.
0:32:38 > 0:32:41In here, a smaller room than you would expect,
0:32:41 > 0:32:43but it's definitely still usable.
0:32:43 > 0:32:47I like this layout, rather than the traditional one of just walking in off the street.
0:32:47 > 0:32:49It does keep in the heat better.
0:32:49 > 0:32:52But there is a good-sized second reception room, which is a lovely space,
0:32:52 > 0:32:54again with those high ceilings.
0:32:54 > 0:32:57This room looks perfect for a comfy couch and a telly.
0:32:57 > 0:32:59Ah, but not quite so perfect...
0:32:59 > 0:33:02I've spotted marks on the back wall,
0:33:02 > 0:33:05indicating there is or has been dampness.
0:33:05 > 0:33:07My experience is, get that sorted very, very early
0:33:07 > 0:33:09and it won't cause you any problems.
0:33:09 > 0:33:12Here, they've got two different textures.
0:33:12 > 0:33:15Now, you've got woodchip at the top and a bit of plaster here.
0:33:15 > 0:33:18That might have been the damp that's been rectified already
0:33:18 > 0:33:20that I did show you over here.
0:33:20 > 0:33:23But, in my opinion, in the houses I used to live in,
0:33:23 > 0:33:24possibly a dado rail.
0:33:27 > 0:33:30Fingers crossed, it is just decorating marks.
0:33:30 > 0:33:34But to be on the safe side, you will need to investigate it fully.
0:33:34 > 0:33:38Otherwise, the rest of the downstairs seems like it just needs a bit of a touch-up,
0:33:38 > 0:33:41possibly new cupboards in the kitchen.
0:33:41 > 0:33:45The good news is the bathroom suite, which is downstairs at the back, is white,
0:33:45 > 0:33:48but really could do with a bit of a makeover.
0:33:48 > 0:33:50And there's broken guttering to the front,
0:33:50 > 0:33:53which could cause further damp problems in the rest of the house.
0:33:55 > 0:33:58Upstairs, there doesn't seem to be any major points at all.
0:33:58 > 0:34:00Only small points in this house that need to be sorted.
0:34:00 > 0:34:03The banister's coming away from the wall. That can be sorted.
0:34:03 > 0:34:06No signs of damp at all. But there is a hole in the ceiling.
0:34:06 > 0:34:10I don't think it's damp, because there's no staining around the hole at all.
0:34:10 > 0:34:12Come through here.
0:34:12 > 0:34:15This is a nice, decent-sized, middle-sized bedroom.
0:34:15 > 0:34:18And there is a hatch to the attic just here.
0:34:18 > 0:34:22That might answer the question of the hole in the ceiling over the stairs.
0:34:22 > 0:34:24Somebody may have just trod in the wrong place
0:34:24 > 0:34:26and made that hole itself.
0:34:27 > 0:34:28# It wasn't me, baby
0:34:29 > 0:34:31# No, it wasn't me, baby
0:34:33 > 0:34:35# It must have been some other body
0:34:35 > 0:34:37# Uh-uh, baby, not me. #
0:34:38 > 0:34:41You've got to watch where you're stepping in attics.
0:34:41 > 0:34:44You could do yourself and the house some damage.
0:34:44 > 0:34:45As well as a middle bedroom,
0:34:45 > 0:34:47there's a good-sized master bedroom at the front.
0:34:47 > 0:34:51And a decent third at the back, which both look in good order,
0:34:51 > 0:34:53without any signs of damp.
0:34:55 > 0:34:59I'm not sure it would be worth the expense of creating a bathroom up here,
0:34:59 > 0:35:02but, if you wanted to, there's room to do so.
0:35:04 > 0:35:07There's some work to be done up here, but it's mostly cosmetic.
0:35:07 > 0:35:09What about the outside?
0:35:10 > 0:35:13Only a small area but, judging by the looks of these walls,
0:35:13 > 0:35:15they've been newly-rendered.
0:35:15 > 0:35:17Looks like they've got a bit of insulation, as well.
0:35:17 > 0:35:19But there is a more pressing problem.
0:35:19 > 0:35:23This looks like double glazing but it isn't double glazing.
0:35:23 > 0:35:26It has one piece of Perspex on the inside
0:35:26 > 0:35:28and it's only held in with screws.
0:35:28 > 0:35:31So, that does need to be sorted out very quickly.
0:35:31 > 0:35:34You could quite easily break into that house.
0:35:34 > 0:35:37The security issue of the Perspex windows aside,
0:35:37 > 0:35:40most of the jobs here are about poor maintenance.
0:35:40 > 0:35:42You know that old adage about a stitch in time?
0:35:42 > 0:35:44Well, if you don't maintain your property,
0:35:44 > 0:35:45the costs can start to multiply
0:35:45 > 0:35:50and the work needed here means that, whoever buys this, has a lengthy list of jobs to tackle.
0:35:50 > 0:35:52At a guide price of £40,000,
0:35:52 > 0:35:55this could still be a sound investment.
0:35:55 > 0:35:57What does a local estate agent think?
0:35:58 > 0:36:00I think it needs a new kitchen, new bathroom.
0:36:00 > 0:36:03Perhaps a look at the central heating.
0:36:03 > 0:36:05And then just your general carpets and decorating.
0:36:06 > 0:36:10There's no doubt that this house would benefit from all the agent's advice.
0:36:10 > 0:36:13But there is a very important factor to bear in mind,
0:36:13 > 0:36:16if anyone is thinking of buying a house to rent out.
0:36:16 > 0:36:20This area lies within a council-run initiative called selective licensing,
0:36:20 > 0:36:25which is aimed at improving living conditions for the residents and the surrounding communities.
0:36:27 > 0:36:30The selective licensing has been run on a trial basis
0:36:30 > 0:36:33on certain streets in certain areas in Stoke-on-Trent at the minute.
0:36:33 > 0:36:37The aim of it is to improve the quality of properties within the area.
0:36:37 > 0:36:38If certain aspects need to be done,
0:36:38 > 0:36:41so, damp-proofing or if the roof needs replacing,
0:36:41 > 0:36:45then the landlord is under an obligation to get those jobs done.
0:36:46 > 0:36:48Another reason, then, to do your homework
0:36:48 > 0:36:51and properly research the property you're buying.
0:36:51 > 0:36:55So, what kind of figures could we be looking at for this three-bed terrace?
0:36:57 > 0:36:59Once the property has been refurbished,
0:36:59 > 0:37:02we'd be expecting an asking price of £59,000
0:37:02 > 0:37:05and a rental price of £375 per calendar month.
0:37:06 > 0:37:09So, no major problems with this property at all.
0:37:09 > 0:37:11Lots of little things that need to be sorted out.
0:37:11 > 0:37:13The damp, hopefully, will be an easy fix.
0:37:13 > 0:37:17But let's see who wanted this property when it went under the hammer.
0:37:20 > 0:37:23Lot 94 is a forecourted mid-terraced house.
0:37:23 > 0:37:26Its guide price has been up to £40,000.
0:37:26 > 0:37:28Can I say 35 to start?
0:37:29 > 0:37:30The bidders for this lot were out of shot,
0:37:30 > 0:37:33but the bidding quickly rose to £41,000.
0:37:35 > 0:37:37At £41,000 for the first time.
0:37:37 > 0:37:40A £41,000 for the second time.
0:37:41 > 0:37:42Third and final time.
0:37:42 > 0:37:44£41,000.
0:37:44 > 0:37:48Not quite enough, if the bidders would like to come and talk to us.
0:37:49 > 0:37:53The last bid of £41,000 failed to match the seller's reserve price.
0:37:53 > 0:37:57However, Chris and her daughter Donna-Marie, also known as Donna,
0:37:57 > 0:38:00upped their offer by £500 and sealed the deal.
0:38:01 > 0:38:04They came along to meet me with their partners Denis and Stephen,
0:38:04 > 0:38:06who had a look around, while I chatted to the proud owners.
0:38:08 > 0:38:11So, Chris and Donna, congratulations, first and foremost.
0:38:11 > 0:38:14But it wasn't no ordinary purchase. Tell us about the auction.
0:38:14 > 0:38:16I'd seen several properties I was interested in.
0:38:16 > 0:38:18There was about five I wanted to bid on.
0:38:18 > 0:38:22- The auction started and they were going way above the guide price.- OK.
0:38:22 > 0:38:25And I was very near to buying one and I just missed it.
0:38:25 > 0:38:28And the auction was going on and we was getting towards the end
0:38:28 > 0:38:30and this property came up.
0:38:30 > 0:38:34So, anyway, I bid on it and got to 41,000 and the auctioneer said,
0:38:34 > 0:38:39"Right, sorry, that's not enough, you know, but see us later if you're interested."
0:38:39 > 0:38:43So, I was sitting, waiting for the next lot that I was interested in to come along
0:38:43 > 0:38:47and the chappie from the auction came across, one of the chaps, and said,
0:38:47 > 0:38:52"Oh, the seller's here today. He says if you pay another thousand, you can have it."
0:38:53 > 0:38:56And I said, "Well, I've got one more lot I'm interested in, actually,
0:38:56 > 0:38:59"and I would rather have that, so I'd rather wait."
0:38:59 > 0:39:02I said, "If I don't get that, you know, I might be interested."
0:39:02 > 0:39:05So, that's what happened. The next lot came. It was a tenanted place.
0:39:05 > 0:39:07It went for more than I was prepared to pay.
0:39:07 > 0:39:09So, of course, I waved to him and he come across.
0:39:09 > 0:39:12He said, "So, do you want it?" And I said, "No, I don't."
0:39:12 > 0:39:15I said, "Tell him I will pay another 500, take it or leave it."
0:39:15 > 0:39:17Anyway, he went off and I could see a little bit of verbal going on.
0:39:17 > 0:39:19But, anyway, then he comes back across.
0:39:19 > 0:39:22He said, "Yes, OK. He says he'll take the other 500."
0:39:25 > 0:39:27At the moment, this is Christine's tenth property
0:39:27 > 0:39:29and she has aspirations to retire when it's done,
0:39:29 > 0:39:33having worked as a property developer for 34 years.
0:39:34 > 0:39:37Donna has 18 properties on the go at the moment,
0:39:37 > 0:39:39having turned full-time three years ago,
0:39:39 > 0:39:42after working in telecommunications.
0:39:45 > 0:39:47So, there's signs of damp. Is that a concern?
0:39:47 > 0:39:50Well, there's a few signs of damp
0:39:50 > 0:39:54but, apparently, the back was treated, I think, under some kind of government grant...
0:39:54 > 0:39:57- That's right, yes. - ..only about eight months ago.
0:39:57 > 0:39:59So, it's still in the drying-out process.
0:39:59 > 0:40:02- OK, so it's been dealt with. - So, it's been dealt with.
0:40:02 > 0:40:05So, hopefully, you know, I haven't bought myself a load of trouble.
0:40:05 > 0:40:08So, the property is in a selective licensing area.
0:40:08 > 0:40:11Now, does that concern you? Is it something you've come across before?
0:40:11 > 0:40:13Not really. We've looked into it.
0:40:13 > 0:40:15I have a property in another area of the city
0:40:15 > 0:40:18that the licensing scheme has also started in.
0:40:18 > 0:40:21This particular area has been under the scheme for a few years now.
0:40:21 > 0:40:25It's not something that we've come across before.
0:40:25 > 0:40:28We do know other landlords that have been involved with it.
0:40:28 > 0:40:31But at least they're trying to do something in areas
0:40:31 > 0:40:33- that are struggling with antisocial behaviour...- OK.
0:40:33 > 0:40:35..bad landlords,
0:40:35 > 0:40:40issues with bad tenants congregating in certain areas, et cetera.
0:40:40 > 0:40:44Is there any other major concerns, problems that you feel you might come across?
0:40:44 > 0:40:46Well, the guttering at the front wants sorting out.
0:40:46 > 0:40:50- And there's lots and lots of cosmetic work, shall we say?- OK.
0:40:50 > 0:40:55But considering there's quite a few empty to-let properties in the street
0:40:55 > 0:40:58and I already have paid quite a premium,
0:40:58 > 0:41:00considering the condition it's in,
0:41:00 > 0:41:02I'm not going to go too overboard.
0:41:02 > 0:41:05I'm just going to give it a good cosmetic sort-through.
0:41:05 > 0:41:09New carpets, probably blinds, titivate the kitchen up.
0:41:09 > 0:41:12- probably new doors and so forth. - New front door.- Brand-new front door.
0:41:12 > 0:41:16Because the front door, I don't know if you've noticed, is only an internal door, actually.
0:41:16 > 0:41:19So, it's having a new PVC door.
0:41:19 > 0:41:20Will you oversee that, Donna?
0:41:20 > 0:41:23Potentially, most of it, yeah.
0:41:23 > 0:41:25And also there might be the potential...
0:41:25 > 0:41:28The boiler's got to be inspected yet and that could be...
0:41:28 > 0:41:29- It is a modern combi.- Yes.
0:41:29 > 0:41:31But it's a bit tatty-looking.
0:41:31 > 0:41:34- I'm not going to put one in just for the sake of putting it in.- No.
0:41:34 > 0:41:37If it does need replacing, obviously, that's going to put
0:41:37 > 0:41:39another couple of thousand more on to the budget, so...
0:41:41 > 0:41:44Christine has set herself a maximum of a £7,000 budget
0:41:44 > 0:41:46if a new boiler is needed.
0:41:46 > 0:41:49And she thinks the work should take between eight to nine weeks.
0:41:51 > 0:41:55Of course, you don't do property developing for as long as Christine has
0:41:55 > 0:41:57without knowing how to delegate.
0:41:58 > 0:42:01So, Chris, tell me, who's going to be doing the work on the property?
0:42:01 > 0:42:05Well, we've got quite a good team that we've established between us over the years.
0:42:05 > 0:42:08You know, a good electrician, a good plumber, tiler and so forth.
0:42:08 > 0:42:10But Donna, actually, will be project managing most of it.
0:42:10 > 0:42:14Oh, so you're passing the responsibility over to Donna on this one?
0:42:14 > 0:42:17- About four years ago I had a stroke...- OK.
0:42:17 > 0:42:21- ..and my husband, last year, had lung cancer and had to have most of a lung removed.- OK.
0:42:21 > 0:42:23And he's also got other health problems.
0:42:23 > 0:42:25He's now got prostate cancer.
0:42:25 > 0:42:30So, since 2002, actually, we've been going to Spain for a portion of the winter
0:42:30 > 0:42:32and it's got more and more as the years have gone on.
0:42:32 > 0:42:36And so, since Donna's taken over these last few years,
0:42:36 > 0:42:39she's done most of the project managing on anything I've bought
0:42:39 > 0:42:41- and she will be doing on this occasion, all being well.- Yeah.
0:42:41 > 0:42:45Let me get this straight. You'll be sitting in Spain on a sunlounger, having a pina colada,
0:42:45 > 0:42:47and you'll be doing all the work?
0:42:47 > 0:42:49Yes. I will be in Spain for a short period of time myself.
0:42:49 > 0:42:52- She's going to Spain, as well. - I think you've got it right.
0:42:52 > 0:42:53She's semi-retired now, yeah.
0:42:53 > 0:42:56So, on that note, I'm going to wish you all the best.
0:42:56 > 0:42:59Again, congratulations on getting the property you didn't want.
0:42:59 > 0:43:02Enjoy yourself doing it up. Enjoy yourself getting a tan.
0:43:02 > 0:43:04And I wish you all the best. Take care. No problem.
0:43:04 > 0:43:07- Thank you.- No problem. Take care. - Pleasure to meet you.- Thank you.
0:43:07 > 0:43:11So, Chris has her tenth property. She's going to Spain.
0:43:11 > 0:43:13Will it be a stress-free holiday,
0:43:13 > 0:43:15while she leaves her daughter here, Donna-Marie,
0:43:15 > 0:43:17to project manage it for her?
0:43:17 > 0:43:19You can find out later on in the programme.
0:43:23 > 0:43:25Well, we've already seen how one property turned out.
0:43:25 > 0:43:27What about the other two?
0:43:27 > 0:43:30Has all the work been completed on time and on budget?
0:43:30 > 0:43:34Well, there's only one way to find out, boys. Let's take a look...
0:43:36 > 0:43:38We head now back to Mitchum in Surrey
0:43:38 > 0:43:41where, earlier, we saw this one-bed, purpose-built maisonette.
0:43:41 > 0:43:43It was neat and tidy and not much wrong
0:43:43 > 0:43:47that a lick of paint and a little modernisation couldn't fix.
0:43:47 > 0:43:49It would make a perfect little purchase
0:43:49 > 0:43:54and snapping it up for £130,000 was gas engineer Craig
0:43:54 > 0:43:56who, along with his eight-year-old daughter, Matilda,
0:43:56 > 0:43:58plan to refresh the place.
0:43:58 > 0:44:01But for Craig, this isn't a quick refurb and cash-in job.
0:44:03 > 0:44:05It's all about my daughter Matilda.
0:44:05 > 0:44:10I was speaking to other parents and they were talking about when their children get older,
0:44:10 > 0:44:12not being able to afford property in London.
0:44:12 > 0:44:14And I had some money in the bank.
0:44:14 > 0:44:18It wasn't earning any interest and I was just kind of slowly chipping away at it
0:44:18 > 0:44:21and I thought, I need to invest it.
0:44:21 > 0:44:23So, if I buy a property now,
0:44:23 > 0:44:26we can rent it out and it will be there for Matilda when she's older.
0:44:26 > 0:44:29And until Matilda is ready to waltz in,
0:44:29 > 0:44:32Craig's pal Keith will be renting out the flat.
0:44:32 > 0:44:35But it seems Matilda has some changes in mind for this place, as well.
0:44:35 > 0:44:38I don't really like the kitchen
0:44:38 > 0:44:42because I don't really like the boards
0:44:42 > 0:44:46and most of the things are not working
0:44:46 > 0:44:48and it's not that nice.
0:44:48 > 0:44:51Keith wasn't going to be moving into his new home for another six months,
0:44:51 > 0:44:54so that was enough time for Craig to get the work done
0:44:54 > 0:44:57and £2,000 was his estimated budget.
0:44:57 > 0:44:58So, it was all very straightforward.
0:45:00 > 0:45:02Seven months later, we're back to meet Craig
0:45:02 > 0:45:06and to see if Matilda got the kitchen she wanted.
0:45:09 > 0:45:12Despite talk of this being a simple and straightforward renovation,
0:45:12 > 0:45:15it appears more has been done than originally planned.
0:45:15 > 0:45:17I'm glad to say, Matilda has got her wish
0:45:17 > 0:45:19and there is a new kitchen,
0:45:19 > 0:45:21as she wasn't a fan of the old one.
0:45:21 > 0:45:26Taking away that odd-arched wall has created a nice open-plan space,
0:45:26 > 0:45:28which doesn't feel nearly as cramped.
0:45:28 > 0:45:30When we had time to have a look,
0:45:30 > 0:45:33we realised it wasn't a structural wall. So, it was just a stud wall.
0:45:33 > 0:45:37So, we could knock that down and open up the kitchen through into the living room.
0:45:37 > 0:45:39It came down quite easily, to be honest.
0:45:39 > 0:45:42There wasn't much holding it up.
0:45:42 > 0:45:45So, a couple of big kicks and the wall was down.
0:45:52 > 0:45:56Giving that wall the boot and creating a new open-plan space
0:45:56 > 0:45:58has improved matters no end.
0:45:58 > 0:46:01And it's the same for the one and only bedroom.
0:46:01 > 0:46:04Changes in the bedroom would be
0:46:04 > 0:46:07the sliding wardrobe has been removed
0:46:07 > 0:46:10to make a bigger bedroom for the bed to fit in.
0:46:10 > 0:46:14I also found the smaller cupboard in the bedroom,
0:46:14 > 0:46:16there was a void to the side,
0:46:16 > 0:46:20which we opened up to make an in-built double wardrobe.
0:46:20 > 0:46:23A much better use of the space that was there.
0:46:23 > 0:46:25The bathroom had little wrong with it
0:46:25 > 0:46:28so, apart from a clean-up, a lick of paint and a cabinet,
0:46:28 > 0:46:30it's business as usual.
0:46:30 > 0:46:33The maisonette has a brighter, cleaner feel,
0:46:33 > 0:46:36all down to new carpets and a splash of paint,
0:46:36 > 0:46:39something Matilda was keen to get stuck into.
0:46:39 > 0:46:45Well, I've done quite a good job of painting the doors and stuff.
0:46:45 > 0:46:46And I was a little bit messy,
0:46:46 > 0:46:50so my dad was a bit worried that I was going to get it on stuff,
0:46:50 > 0:46:53so he literally went, "Let's go and get some newspapers."
0:46:53 > 0:46:54Put them down.
0:46:54 > 0:46:56He said, "Don't put it on your shoes."
0:46:56 > 0:46:58So, I was like, "OK, I won't put it on my shoes."
0:46:58 > 0:47:02There were a few paint footprints around the room.
0:47:03 > 0:47:04Yeah, yeah, yeah.
0:47:04 > 0:47:06Nothing wrong with that.
0:47:06 > 0:47:08In the past, Craig has renovated his own properties
0:47:08 > 0:47:11and used that experience in getting this maisonette ready for Keith,
0:47:11 > 0:47:14who also chipped in and helped out.
0:47:14 > 0:47:17No, there's nothing else I would do particularly differently.
0:47:17 > 0:47:19I think it's all gone rather well.
0:47:20 > 0:47:23Craig based his timescale of six months
0:47:23 > 0:47:26on Keith having to fulfil his current tenancy agreement.
0:47:26 > 0:47:28So, he was pretty relaxed about that.
0:47:28 > 0:47:30Has he been equally relaxed about the budget?
0:47:32 > 0:47:35The original budget was about £2,000,
0:47:35 > 0:47:39which we were close to coming in on the budget.
0:47:39 > 0:47:41But we brought Keith round to have a look
0:47:41 > 0:47:46and we were hoping to get away with just cleaning the original carpets that were here.
0:47:46 > 0:47:47He wasn't so happy with them,
0:47:47 > 0:47:50so we decided to get new carpets throughout,
0:47:50 > 0:47:52which blew the budget a little bit.
0:47:52 > 0:47:54But it pushed us up to about 3,000.
0:47:56 > 0:47:59Well, along with his purchase price of 130,000,
0:47:59 > 0:48:02Craig's total outlay is £133,000.
0:48:03 > 0:48:06Time to find out what two local estate agents
0:48:06 > 0:48:08make of Matilda's little property empire,
0:48:08 > 0:48:13starting with the agent who first saw the maisonette seven months ago.
0:48:13 > 0:48:15What the owner's done now is he's opened up the kitchen
0:48:15 > 0:48:18to the living room area and it makes a big difference.
0:48:18 > 0:48:20The property flows really nicely. I think it's a nice touch.
0:48:20 > 0:48:23It looks a bit more modern. And it gives the impression of more space.
0:48:23 > 0:48:26I'm impressed with the way it's been modernised.
0:48:26 > 0:48:28I think they've used the space very well,
0:48:28 > 0:48:30opened up where the cupboards used to be
0:48:30 > 0:48:34and opening the kitchen into the reception area makes a lot of sense, makes it all a lot brighter.
0:48:34 > 0:48:38Craig, of course, already has a tenant lined up at mate's rates.
0:48:38 > 0:48:41But what could this fetch on the open market?
0:48:41 > 0:48:45In my view, the likely rental achievable would be
0:48:45 > 0:48:48in the region of £800 to £850 per month.
0:48:48 > 0:48:50Rental for this property,
0:48:50 > 0:48:54we'd probably be looking at about £775 per calendar month.
0:48:54 > 0:48:56Good rental.
0:48:56 > 0:48:59I might have to revise what I'm charging my friend to stay here!
0:48:59 > 0:49:04In fact, Craig is getting around £650 per calendar month,
0:49:04 > 0:49:07which would give him an annual yield of just under 6%,
0:49:07 > 0:49:09which is still pretty healthy.
0:49:09 > 0:49:12However, this is all about creating an investment for Matilda.
0:49:12 > 0:49:16So, what, if any value has the flat accumulated
0:49:16 > 0:49:20on that total £133,000 investment?
0:49:20 > 0:49:24I would value the property for resale now at approaching 150,000.
0:49:24 > 0:49:28This property would sell for approximately £165,000.
0:49:28 > 0:49:31We could possibly get a little more, maybe up to the 170 mark.
0:49:31 > 0:49:34But I think 165 is a good mark.
0:49:34 > 0:49:39In fact, those valuations from £150,000 to £170,000
0:49:39 > 0:49:44could give Craig a possible pre-tax profit of 17,000 to 37,000.
0:49:48 > 0:49:50I'm quite happy with that.
0:49:50 > 0:49:54Yeah, the plan's still the long-term plan with renting.
0:49:54 > 0:49:58But it's nice to know, yeah, I've made a bit of money.
0:49:59 > 0:50:02So, in the short term, this looks like a smart investment.
0:50:02 > 0:50:04But, of course, no-one really knows
0:50:04 > 0:50:07what will happen in the long term in the property market.
0:50:07 > 0:50:11But it looks like Matilda is a professional landlord in the making.
0:50:12 > 0:50:15I think it's turned out really nice.
0:50:15 > 0:50:17When Keith looks after the place,
0:50:17 > 0:50:19I think he should look after it very, very well.
0:50:19 > 0:50:21Because, if I get this flat,
0:50:21 > 0:50:25I want it to look exactly how it was, because this is amazing.
0:50:25 > 0:50:27If he doesn't look after it,
0:50:27 > 0:50:30I am going to give him one piece of my mind!
0:50:38 > 0:50:41We go back to the market town of Tunstall in Stoke-on-Trent
0:50:41 > 0:50:44where, earlier, I looked around a three-bed, mid-terraced house
0:50:44 > 0:50:47that had a guide price of £40,000 plus.
0:50:50 > 0:50:53After failing to sell on auction day, a deal was struck
0:50:53 > 0:50:57and it was eventually bought for £41,500
0:50:57 > 0:50:59by experienced property developer Christine,
0:50:59 > 0:51:01who, along with her daughter, Donna,
0:51:01 > 0:51:03formed a formidable partnership.
0:51:03 > 0:51:06Although, it was clear who the boss was.
0:51:06 > 0:51:10Since 2002, actually, we've been going to Spain for a portion of the winter
0:51:10 > 0:51:12and it's got more and more as the years have gone on.
0:51:12 > 0:51:15And so, since Donna's taken over these last few years,
0:51:15 > 0:51:18she's done most of the project managing on anything I've bought
0:51:18 > 0:51:21- and she will be doing on this occasion, all being well.- Yeah.
0:51:21 > 0:51:22Let me get this straight.
0:51:22 > 0:51:25You'll be sitting in Spain on a sunlounger having a pina colada,
0:51:25 > 0:51:27and you'll be doing all the work?
0:51:27 > 0:51:30Yes. I will be in Spain for a short period of time myself.
0:51:30 > 0:51:33- I think you've got it right. - She's semi-retired now, yeah.
0:51:33 > 0:51:36Christine has got this property developing lark sorted.
0:51:36 > 0:51:39And while she said, "hola!" to the Spanish sunshine,
0:51:39 > 0:51:42Donna will be doing the donkey work in Tunstall.
0:51:42 > 0:51:44She was hoping to say, "adios!" to the damp
0:51:44 > 0:51:46and get this place tickety-boo...
0:51:46 > 0:51:48I'm not sure what the Spanish is for that.
0:51:48 > 0:51:50..all for around a £7,000 budget
0:51:50 > 0:51:51and in eight to nine weeks.
0:51:55 > 0:51:58Two months later, has Donna done it?
0:52:11 > 0:52:15A simple and clean refurbishment is the order of the day here,
0:52:15 > 0:52:19which makes this property perfect for the area and the rental market.
0:52:27 > 0:52:30So, this is the front reception room.
0:52:30 > 0:52:34It's been decorated, new carpeting, which is gone throughout the house.
0:52:34 > 0:52:37This cupboard has been built to house the electric and gas meter.
0:52:37 > 0:52:41New blinds. Ventilation put in the chimney breast.
0:52:41 > 0:52:45And the wall behind you is where we had the moisture issues
0:52:45 > 0:52:47that we're pretty much on top of now.
0:52:48 > 0:52:51With the ventilation sorted, the pointing and the guttering all fixed
0:52:51 > 0:52:53and the radiators added,
0:52:53 > 0:52:55that should mean Donna has won the battle with the damp.
0:52:56 > 0:52:58Or has she?
0:52:58 > 0:53:00We are still unsure whether it's 100% fixed,
0:53:00 > 0:53:03because we've had problems with the utility company.
0:53:03 > 0:53:06The day we bought the property, they forced entry,
0:53:06 > 0:53:08breaking the front door to get in,
0:53:08 > 0:53:11to change the prepayment meter,
0:53:11 > 0:53:15because of some ongoing issue they had with the previous owner or occupier.
0:53:15 > 0:53:17And since then,
0:53:17 > 0:53:21we've had issues getting a steady supply of gas to the premises.
0:53:21 > 0:53:23So, even after we'd installed the boiler
0:53:23 > 0:53:26to make sure that we could heat the property and ventilate it properly,
0:53:26 > 0:53:29we haven't actually been able to fully dry it out.
0:53:29 > 0:53:33So, on one of the internal walls, there is still signs of moisture.
0:53:33 > 0:53:35But everywhere else, it is cleared up now.
0:53:36 > 0:53:38With all the experience Donna has,
0:53:38 > 0:53:42it just goes to show that you can get caught out with issues like this.
0:53:42 > 0:53:45However, damp issues aside, Donna has turned in a neat job throughout.
0:53:47 > 0:53:50Overall, the work that we've done on the house...
0:53:50 > 0:53:52A full decoration,
0:53:52 > 0:53:56brand-new flooring and window-dressings throughout.
0:53:56 > 0:53:58We have installed a brand-new combi boiler.
0:53:58 > 0:54:01There has been a brand-new front door.
0:54:01 > 0:54:04Sealed units throughout, where needed.
0:54:04 > 0:54:08There has been some building works outside repairing walls.
0:54:10 > 0:54:12I think that's about it.
0:54:12 > 0:54:14Their original budget was £7,000.
0:54:14 > 0:54:16But the final renovation came in at £8,000.
0:54:18 > 0:54:20The house, though, does look neat and neutral
0:54:20 > 0:54:23and, in all, I reckon it looks very rentable.
0:54:23 > 0:54:25Is mum Christine happy with this?
0:54:25 > 0:54:29I have kept my mum up-to-date with regular photographs
0:54:29 > 0:54:33and video calling her from the property.
0:54:33 > 0:54:35And so far the feedback that she's given me
0:54:35 > 0:54:39is that she is very pleased with the progress and the work that everyone's done.
0:54:39 > 0:54:40And we just need to push on and finalise
0:54:40 > 0:54:43which tenant we're going to be having moving in the property.
0:54:43 > 0:54:46And then she'll be happy and we'll move on to the next project.
0:54:46 > 0:54:48Her next project?
0:54:48 > 0:54:51Didn't Christine say this would be the last in her portfolio?
0:54:51 > 0:54:54This most definitely will not be my mum's last property.
0:54:54 > 0:54:57Every property she buys is always her last property.
0:54:57 > 0:55:01And then you find there's an auction catalogue come through the door
0:55:01 > 0:55:03or she's got a viewing arranged
0:55:03 > 0:55:05or she's asking me to go and have a look at a house for her.
0:55:05 > 0:55:08So, despite what she says, she'll keep going.
0:55:08 > 0:55:09I'm glad to hear it.
0:55:10 > 0:55:15An issue for this property was that it fell within a selective licensing area,
0:55:15 > 0:55:18which meant landlords had to make sure their property was well-maintained
0:55:18 > 0:55:22and their tenants adhered to the licensing guidelines.
0:55:22 > 0:55:24All things Donna will be doing.
0:55:28 > 0:55:32So, it's taken Donna two months at a cost of around £8,000.
0:55:32 > 0:55:37Meaning mum Christine has invested a total of £49,500 on this project,
0:55:37 > 0:55:39which is heading for the rental market.
0:55:39 > 0:55:43But, before that, what do two local estate agents think of the work done here?
0:55:43 > 0:55:46Starting with the agent who saw it originally...
0:55:48 > 0:55:50This is my second time round the property.
0:55:50 > 0:55:52It's had quite a few improvements since then.
0:55:52 > 0:55:54The bathroom has been improved.
0:55:54 > 0:55:56The internal decoration's been upgraded.
0:55:56 > 0:55:59And I think some new windows and doors have been installed, as well.
0:55:59 > 0:56:02There is a demand for this type of property,
0:56:02 > 0:56:05both from buyers looking to let the property
0:56:05 > 0:56:07or, alternatively, there is demand already for tenants.
0:56:09 > 0:56:12Sounds pretty positive. Let's talk valuations...
0:56:12 > 0:56:14If we were placing the property on the market
0:56:14 > 0:56:17we'd recommend an asking price of £49,950.
0:56:17 > 0:56:21I would place this property on the open market
0:56:21 > 0:56:23in the region of £55,000.
0:56:23 > 0:56:27I think they're relatively high for the area.
0:56:27 > 0:56:31We have got it as an investment and it is up for rental,
0:56:31 > 0:56:34but I'll definitely be passing those figures onto my mum
0:56:34 > 0:56:38for her to have a last-minute thought about whether she does want to consider selling.
0:56:38 > 0:56:41But I think, really, it's a long-term rental.
0:56:43 > 0:56:46Well, if Christine did sell at the higher estimate of £55,000,
0:56:46 > 0:56:49that would mean a pre-tax profit of £5,500,
0:56:49 > 0:56:51which could buy you one or two sangrias.
0:56:52 > 0:56:54But before that, let's look at a possible rental.
0:56:56 > 0:56:59I would expect a rental income in the region of
0:56:59 > 0:57:00£400 per calendar month.
0:57:00 > 0:57:02If it was going onto the rental market,
0:57:02 > 0:57:07we'd recommend a rental price of £375 per calendar month.
0:57:07 > 0:57:09Yeah, those figures are roughly about right.
0:57:09 > 0:57:14375 edges more towards the two-bedroom type of property for this area.
0:57:14 > 0:57:20400 to 425 is around about the rate for a three-bedroom property in this area.
0:57:20 > 0:57:24And this is currently marketed at 395 and we've had a phenomenal response.
0:57:24 > 0:57:26So, that's probably the amount that we're looking to achieve.
0:57:27 > 0:57:30That rental of £395 per calendar month
0:57:30 > 0:57:34would bring in a yield of a whopping 9.5%,
0:57:34 > 0:57:36making this a real success.
0:57:36 > 0:57:37So, what's the secret, Donna?
0:57:39 > 0:57:43For anybody wanting to consider buying property,
0:57:43 > 0:57:45I'd say do your research, do your homework,
0:57:45 > 0:57:48double-check your figures, always have a backup plan
0:57:48 > 0:57:52and a secondary backup plan and a third backup plan
0:57:52 > 0:57:55and make sure you've got your money in place and you can't go far wrong.
0:57:59 > 0:58:01There are always twists and turns in the property market.
0:58:01 > 0:58:05Yes, and we'll have plenty more properties for you next time on Homes Under The Hammer.
0:58:05 > 0:58:06- See- you, then. Goodbye.- Goodbye.