Episode 41 Homes Under the Hammer


Episode 41

Similar Content

Browse content similar to Episode 41. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

-Hello.

-We know investing in property can be frightening,

0:00:020:00:04

especially if you've never done it before.

0:00:040:00:06

Yeah, do your research, make sure the property's for you

0:00:060:00:09

and it won't feel as daunting.

0:00:090:00:10

No, and one place you might be able to pick up

0:00:100:00:12

that perfect opportunity is at your local property auction.

0:00:120:00:16

There are so many different types of property that come up for auction.

0:00:410:00:45

Yeah, but don't be swayed by all the options.

0:00:450:00:48

-It's all about making one right choice.

-Yeah.

0:00:480:00:50

Let's find out what today's buyers on the show decided to go for.

0:00:500:00:54

Two sisters don't need the bank of mum and dad

0:00:550:00:58

to buy in No Place, Durham, but DID need them at the auction.

0:00:580:01:02

-Did you need them there?

-Moral support.

0:01:020:01:04

In Wellington, Shropshire,

0:01:050:01:07

could that be baby Monty offering moral support on dad's DIY?

0:01:070:01:12

-Is your DIY getting any better?

-MONTY BURBLES

0:01:120:01:15

And Bal the buyer has promised his son a home

0:01:150:01:18

and it's not this Ealing flat.

0:01:180:01:21

I promised Tom a house,

0:01:210:01:22

a small house with chickens at the end of the garden.

0:01:220:01:25

All these properties were bought at auction.

0:01:260:01:28

We'll find out who bought them and how much they paid

0:01:280:01:32

-when these homes went under the hammer.

-Sold!

0:01:320:01:35

MUSIC: No Place Like Home by John Holt

0:01:370:01:41

Only 11 miles from Durham and a stone's throw from Beamish,

0:01:410:01:45

a village famous for its open-air museum, is No Place.

0:01:450:01:49

And you know what they say...

0:01:490:01:51

# There is no place like home... #

0:01:510:01:57

So, a lovely little village

0:01:570:01:59

with one of the strangest but coolest names I've ever heard - No Place.

0:01:590:02:03

You've got to love it, you really have.

0:02:030:02:05

Anyway, it's a two-bed mid-terrace house with a guide price of £20,000.

0:02:050:02:10

What I want to know is, is No Place really like home?

0:02:100:02:14

Let's get inside. It's cold out there, really cold.

0:02:160:02:20

Anyway, straight into the lounge area.

0:02:200:02:22

You've got this retro banister here on the stairs

0:02:220:02:25

going up to the bedrooms.

0:02:250:02:27

But a nice size lounge area and look at that fireplace.

0:02:270:02:30

If you could restore this to its past glory,

0:02:300:02:33

you'd have a nice feature in this lounge area.

0:02:330:02:36

Open-plan to what I think would have been the kitchen

0:02:360:02:40

but it looks like they've actually turned this into a dining area now,

0:02:400:02:43

judging by the flooring.

0:02:430:02:45

Nice open-plan, lots of space. Let's have a look through here.

0:02:450:02:48

# There is no place like home... #

0:02:510:02:55

This is a promising start. Viewed from the outside,

0:02:550:02:59

I wouldn't have expected as much space in here,

0:02:590:03:02

but the open-plan living area and dining areas are deceptively roomy.

0:03:020:03:07

Into the kitchen and it's definitely colder in here. There's no heating.

0:03:070:03:11

I have read the legal pack

0:03:110:03:13

and I know for certain there's no insulation on this flat roof.

0:03:130:03:17

That said, get a new kitchen in here,

0:03:170:03:19

take this out, clean it up, tidy it up,

0:03:190:03:21

I think you'd have a nice space to do your Sunday roast.

0:03:210:03:25

# Baby, it's cold outside... #

0:03:250:03:31

Or, if you would rather have a barbie,

0:03:320:03:35

then the fairly decent size yard at the back of the house

0:03:350:03:38

would serve nicely, but not today. It's freezing!

0:03:380:03:41

Upstairs, there are two double bedrooms and a bathroom.

0:03:430:03:46

The front bedroom has painted floorboards

0:03:480:03:50

but it's a shame to hide what could be a real selling point.

0:03:500:03:53

I reckon they'd look fabulous stripped back, sanded and varnished.

0:03:540:03:58

The back bedroom is a bit untidy but with complete redecoration,

0:04:000:04:04

would be as good as new.

0:04:040:04:05

The bathroom is the perfect size for this house - small.

0:04:070:04:11

But if your budget was tight, I think some paint

0:04:110:04:14

and perhaps a bit of new flooring would freshen it up nicely.

0:04:140:04:18

That guide of £20,000 looks very tempting

0:04:210:04:23

as there doesn't seem to be much work needed

0:04:230:04:26

to get this place up and running.

0:04:260:04:29

A local estate agent battled the elements to give us his opinion.

0:04:290:04:33

No Place is an area

0:04:330:04:35

that will appeal to, perhaps, some first-time buyers.

0:04:350:04:37

The majority of properties here are two-bedroom

0:04:370:04:40

and with the price range,

0:04:400:04:41

they're likely to appeal to first-time buyers,

0:04:410:04:44

but also to buy-to-let investors.

0:04:440:04:45

There's a lot of rental properties here

0:04:450:04:47

and I think it's a good investment for a buy-to-let investor.

0:04:470:04:50

I think a new kitchen would certainly be in order

0:04:500:04:53

and replacing the current bathroom.

0:04:530:04:55

The heating system looks to be in decent order,

0:04:550:04:58

so I don't think there's anything required there,

0:04:580:05:01

so it's mainly cosmetic and decorative improvement required.

0:05:010:05:04

And what valuations could the new buyer be expecting?

0:05:060:05:09

I think this house would refurbish to a decent standard.

0:05:110:05:14

You could be looking at a resale price in the region of £40-45,000.

0:05:140:05:18

I think, from the rental side,

0:05:180:05:20

you'd be looking at a price of roughly £350 per calendar month.

0:05:200:05:25

There isn't a lot that needs doing to this property. It's very superficial.

0:05:250:05:29

New kitchen, new bathroom and the insulation in this roof above me.

0:05:290:05:33

But if you get it for anywhere near the guide price of £20,000,

0:05:330:05:36

I think you could be onto a winner.

0:05:360:05:38

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

0:05:380:05:40

OK, 20's your guide. First lot of the day.

0:05:400:05:44

Two-bedroom mid-terrace house.

0:05:440:05:45

Benefits are gas central heating, double glazing.

0:05:450:05:48

Start me off at 20. At £20,000 am I bid?

0:05:480:05:51

15? Need a bid. Can't sell it without one.

0:05:510:05:54

15 here, just beat you to it.

0:05:540:05:56

With you, madam, at 15. 16, can I? 16. 17?

0:05:560:06:00

At 17 I'm bid now. 18?

0:06:000:06:03

18 I'm bid. 19? At 19 I'm bid.

0:06:030:06:05

20? Yeah, 20 I'm bid.

0:06:050:06:08

1, madam? Can you? 21. 22? 22 I'm bid.

0:06:080:06:13

23? 24? Shake of the head.

0:06:130:06:17

Here at £23,000. At £23,000, in the middle of the room, first time...

0:06:170:06:23

Take a half, sir? 23.5.

0:06:230:06:26

24? 24 I'm bid. Half?

0:06:260:06:29

Maybe not. Here at 24.

0:06:290:06:31

At £24,000 then, for the first time,

0:06:310:06:34

lot number one, second time,

0:06:340:06:37

at £24,000 if you're all done, selling away.

0:06:370:06:40

-HE BANGS GAVEL

-Well done, madam.

0:06:400:06:42

# This is the right time... #

0:06:440:06:46

Leading from the front, with some confident bidding,

0:06:460:06:49

was 27-year-old Charlotte.

0:06:490:06:51

Along with her 20-year-old sister Sophie,

0:06:520:06:55

she had decided the time was right to begin building a property portfolio.

0:06:550:06:59

This is the first purchase for the sisters at auction

0:07:010:07:03

and we met up back at the house for a chat.

0:07:030:07:06

# This is the right time... #

0:07:060:07:09

-Charlotte, nice to meet you.

-You too.

-Sophie.

-Nice to meet you.

0:07:090:07:12

Congratulations.

0:07:120:07:13

Now, you went to auction. You didn't go alone, did you?

0:07:130:07:16

No, we went together and we took our mum and dad with us as well.

0:07:160:07:19

-Did you need them there?

-Moral support.

-Did it help?

0:07:190:07:23

-Um...

-Not really.

0:07:230:07:25

We were OK on our own but it just offered a bit of support for us.

0:07:250:07:28

-Who was doing the bidding? Who was in charge?

-Charlotte.

-I was.

0:07:280:07:32

-I wasn't trusted.

-Were you not?

0:07:320:07:34

Did you only go for this property? Was this the only one you looked at?

0:07:340:07:37

Yeah, at auction, we just went for this property.

0:07:370:07:40

-And did you get it for what you wanted it for?

-Mmm, less.

0:07:400:07:43

-So you saved some money?

-Yeah.

0:07:430:07:46

We expected it to go a bit higher than what it went for.

0:07:460:07:49

So, tell us why this property in particular.

0:07:490:07:51

Did you look at any others or did this one catch the eye?

0:07:510:07:53

We did look at some others and we went to auction

0:07:530:07:56

and we didn't win those so I came and viewed this one

0:07:560:07:59

before the auction and there wasn't a great deal to do.

0:07:590:08:02

No structural work, it's just mainly the interior.

0:08:020:08:06

It's a nice area and the properties aren't too expensive

0:08:060:08:10

and I think they're let out quite well and sell on, so...

0:08:100:08:14

We thought the price was really good as well for the property,

0:08:140:08:17

-so what we were getting for our money.

-And are you happy?

0:08:170:08:20

-Did she do good?

-Yeah, she did good. I didn't see it before, so...

-Good.

0:08:200:08:23

-And you read the legal pack as well?

-Yeah, had a look.

-Good.

0:08:230:08:26

Now you've got this property, what are you going to do with it?

0:08:260:08:28

We're going to start by stripping everything out.

0:08:280:08:31

We'll replaster, do upstairs,

0:08:310:08:33

like change all the skirting boards, door frames.

0:08:330:08:37

New kitchen, bathroom and then just decorate throughout.

0:08:370:08:41

And what about the extension out the back?

0:08:410:08:44

There's no insulation in the ceiling. How are you going to warm it up?

0:08:440:08:47

We're going to have to put insulation in.

0:08:470:08:49

The ceiling will have to be lowered slightly

0:08:490:08:51

so we can get some spotlights in as well.

0:08:510:08:53

And then we're going to put some blow heaters

0:08:530:08:56

in the plinths underneath, so on the floor.

0:08:560:08:59

It'll need it, cos you'll be throwing money away,

0:08:590:09:01

the heat going through there. So, the ceiling's coming lower,

0:09:010:09:04

so I'm not going to be able to fit in there.

0:09:040:09:07

Thank you very much for that.

0:09:070:09:09

Not welcome back for a cup of tea, I understand.

0:09:090:09:11

# There's no room in your world for me

0:09:110:09:15

# There's no room in your world for me... #

0:09:150:09:21

Looks like I'm off the guest list.

0:09:210:09:23

But the girls will be issuing a special invitation

0:09:230:09:26

to their dad, Neil.

0:09:260:09:28

A builder by trade, Neil's help will be crucial

0:09:280:09:31

in getting this renovation project completed.

0:09:310:09:34

Once upon a time, he would nag THEM to do their homework

0:09:340:09:37

but now he'll be the one doing their HOME-work.

0:09:370:09:40

Our dad's going to do most of the work cos he's a builder

0:09:410:09:44

-and he's got his own company.

-What will he do for you?

0:09:440:09:47

All of it, really. And then we'll do the decorating.

0:09:470:09:51

What do you see are the biggest problems to overcome?

0:09:510:09:54

Probably getting our dad up here.

0:09:540:09:57

Expecting him to come up every weekend might a be a bit too much.

0:09:570:10:01

-How far's dad away from here then?

-About an hour away.

0:10:010:10:05

But the girls are prepared to get their hands dirty

0:10:070:10:10

and once Dad has got the big jobs out the way,

0:10:100:10:13

they will get to work making the place look bright and modern.

0:10:130:10:17

And as this is going to be a family affair,

0:10:170:10:20

Mum will also lend her expertise on kitchen layout and tiling

0:10:200:10:25

and she's a dab hand at decorating as well.

0:10:250:10:28

All seems a doddle - so far.

0:10:280:10:31

How long are you hoping it's going to take him to get it completed?

0:10:310:10:35

-Roughly about 6 months.

-So tell us about the budget.

0:10:350:10:38

How much are you looking to spend?

0:10:380:10:40

As little as possible I know, but what would you like to spend?

0:10:400:10:42

Roughly between about £8-10,000.

0:10:420:10:45

Their plan to sell this house once renovated

0:10:520:10:54

means that if Charlotte and Sophie manage

0:10:540:10:57

to keep within the £10,000 budget,

0:10:570:10:59

their total spend would be £34,000.

0:10:590:11:02

Based on the estate agent's top valuation of £45,000,

0:11:020:11:06

the girls could be looking at a potential profit of £11,000 -

0:11:060:11:11

not bad for a part-time occupation.

0:11:110:11:13

So, what do you do when you're not buying properties?

0:11:150:11:17

I work in renewable energy in training and forecasting.

0:11:170:11:21

-And yourself?

-I'm at university, studying at the minute

0:11:210:11:24

but I'm on a two-year placement

0:11:240:11:25

at a car manufacturing company in the north-east.

0:11:250:11:27

-Enjoying it?

-It's really good, interesting.

0:11:270:11:30

Now you're into the property-developing world,

0:11:300:11:32

are you going to stop here? Is this a one-off?

0:11:320:11:35

No, we'll probably carry on. If this goes well,

0:11:350:11:38

we'll look to buy another one, maybe at auction again.

0:11:380:11:41

Pricing's good and we found a good buy here.

0:11:410:11:44

There's quite a lot of properties that come up on the market

0:11:440:11:46

quite frequently around here, so...

0:11:460:11:49

And will you change from buying to sell?

0:11:490:11:52

Will you rent any? Will you keep any yourselves?

0:11:520:11:54

Yeah, once we've done a few, we'll maybe do some buy-to-lets.

0:11:540:11:58

Create a bit of a portfolio maybe.

0:11:580:12:01

And will you actually look at properties

0:12:010:12:03

that maybe need a bit more work doing or would you steer clear of them?

0:12:030:12:06

-Potentially in the future.

-Is that only because you've got Dad there?

0:12:060:12:09

-Yeah.

-To do everything for you?

-He's got to help.

0:12:090:12:12

And you're so young to start doing this.

0:12:120:12:15

I think you're doing it just at the right time as well.

0:12:150:12:17

And if you can find some gems like this, I think you'll do well.

0:12:170:12:20

-I wish you good luck.

-Thank you.

-Thank you.

-Good luck.

0:12:200:12:23

So, dad Neil has got his work cut out with his two lovely daughters

0:12:250:12:28

who have their heads screwed on

0:12:280:12:30

getting into the property-developing world so young.

0:12:300:12:32

And if they can get the work done within the timescale and the budget

0:12:320:12:36

and they can receive that healthy yield,

0:12:360:12:37

I think they'll be onto a winner

0:12:370:12:39

and I don't think it will be the last property they buy.

0:12:390:12:41

Find out how they get on later in the programme.

0:12:410:12:43

This is Wellington,

0:12:480:12:49

a historic market town on the outskirts of Telford in Shropshire.

0:12:490:12:54

The town once played host to King Charles I, who in 1642,

0:12:540:12:59

declared war on parliament from right here.

0:12:590:13:02

So, that's the history, but what about the property I'm here to see?

0:13:020:13:07

Well, it is on a bit of a major road,

0:13:080:13:11

which is a bit of a disadvantage,

0:13:110:13:12

but the good news is the flat I'm here to see

0:13:120:13:15

is only five-minutes' walk from the railway station.

0:13:150:13:18

Guide price of £50,000 for a two-bed. Sounds good.

0:13:180:13:22

Oh!

0:13:280:13:29

So, it's an upstairs flat...

0:13:290:13:32

..which actually, some people really prefer.

0:13:330:13:37

But what's it like?

0:13:370:13:38

Well, first impression is pretty good. In nice decorative order.

0:13:380:13:42

You might not like the wallpaper. It's a bit dark for my taste,

0:13:420:13:45

but it seems to be in pretty good condition.

0:13:450:13:48

Very large bedroom there, which is nice to see.

0:13:480:13:51

Second bedroom which isn't as big but is pretty reasonable.

0:13:510:13:55

Bathroom there. It could do with a bit of modernisation

0:13:550:13:58

but it's a nice size, as, indeed, is the lounge.

0:13:580:14:01

Really good size space. And then, to cap it all,

0:14:010:14:04

into the kitchen which could do with a bit of modernisation.

0:14:040:14:08

It would certainly benefit from new units, perhaps,

0:14:080:14:11

but you've got to figure out what you're going to use this place for.

0:14:110:14:14

Are you going to rent it out? Would this be serviceable?

0:14:140:14:16

I think it probably could. So, all in all, a pretty good little flat.

0:14:160:14:21

I can't see anything that worries me

0:14:210:14:23

and it's a reminder that sometimes properties sent to auction

0:14:230:14:26

are just there for a quick sale or for different reasons,

0:14:260:14:30

other than being really problematic.

0:14:300:14:33

But still, take nothing for granted. There's that legal pack to check.

0:14:330:14:37

And some wallpaper catalogues, possibly!

0:14:370:14:40

So, because I am a good boy, I've done some homework,

0:14:400:14:43

and I can tell you that the flat has a 99-year lease

0:14:430:14:46

and, with no communal areas to worry about,

0:14:460:14:50

only the shared roof and exteriors are a joint concern.

0:14:500:14:54

The service charge is £180 per year.

0:14:540:14:57

See, that's the sort of stuff you need to know.

0:14:570:15:00

When you start out as a property investor, you have, in your mind,

0:15:030:15:06

grand ideas of the kind of properties you're going to take on.

0:15:060:15:09

Big castles or huge great houses with turrets and all sorts of stuff.

0:15:090:15:14

You know what? When you start out,

0:15:140:15:16

you need to start small to hone your skills

0:15:160:15:19

and this is exactly what you should be looking for.

0:15:190:15:21

If you are an inexperienced property developer,

0:15:210:15:24

something like this, which isn't going to cost you so much to buy,

0:15:240:15:27

which you can do a little bit to tart up,

0:15:270:15:29

add a bit of value to, gain that knowledge,

0:15:290:15:32

start with something like that and then buy your castle.

0:15:320:15:35

# Come on by some night My castle's rockin'...#

0:15:350:15:40

A castle it might not be but what it lacks in turrets and tiaras,

0:15:400:15:45

it more than makes up for with layout and proportions,

0:15:450:15:48

not to mention being a sound investment

0:15:480:15:51

with that guide price of £50,000.

0:15:510:15:53

We asked a local estate agent along to hear his opinion.

0:15:530:15:57

The flat itself is very, very spacious. Very good layout.

0:15:570:16:01

In terms of the actual rooms,

0:16:010:16:03

nothing really to be done to them at all.

0:16:030:16:06

Some of the decor is a bit iffy/ psychedelic

0:16:060:16:10

and I'd certainly be doing some redecoration if I was to buy this.

0:16:100:16:14

Possibly put in a new kitchen and new bathroom

0:16:140:16:17

but probably not spending an awful lot on that,

0:16:170:16:20

so probably going for the budget ranges of both those things.

0:16:200:16:23

And also, I'd get the electrics checked.

0:16:230:16:26

One of the plugs appears to have got tape round it,

0:16:260:16:30

so it would be prudent to get that inspected,

0:16:300:16:32

particularly if someone is looking to let this property out.

0:16:320:16:36

Good call. Some of the electrics do look rather dodgy.

0:16:360:16:40

This exterior trunking is less than desirable

0:16:400:16:42

but the agent is impressed with this flat. Time to talk dosh here.

0:16:420:16:47

What could it make on the sales and rental market?

0:16:470:16:51

If this property was to go on the open market

0:16:510:16:53

once it's been freshened up,

0:16:530:16:55

I would suggest a marketing price of £70,000.

0:16:550:16:58

However, if they decided to go down the rental route,

0:16:580:17:00

I would suggest a rental income of £495 per calendar month.

0:17:000:17:04

Well, it's a nice little flat in a good location.

0:17:040:17:07

If you wanted to, you could pretty much move into it as it is,

0:17:070:17:10

although I, personally,

0:17:100:17:12

would think about replacing the kitchen and the bathroom.

0:17:120:17:14

But let's see who fancied it when it went under the hammer.

0:17:140:17:18

It's a leasehold first-floor apartment

0:17:210:17:23

with two bedrooms and it is in need of modernisation.

0:17:230:17:27

What's this? £50,000 start?

0:17:270:17:30

48 then? Can we get it going at 48?

0:17:300:17:32

48 bid, thank you. At £48,000.

0:17:320:17:35

Bid's at 48. 49 on the front row.

0:17:350:17:38

At 49. 50? 50.

0:17:380:17:41

51. 52. 53.

0:17:410:17:45

At £53,000 on the front row.

0:17:460:17:48

54. 55?

0:17:480:17:51

No, at 54. At £54,000 to my left.

0:17:510:17:55

55.

0:17:560:17:58

56?

0:17:580:17:59

At £55,000 to my right then.

0:18:000:18:03

At £55,000. 56 anywhere else?

0:18:030:18:05

If not, £55,000 once.

0:18:050:18:08

£55,000 twice.

0:18:080:18:11

Third and final time... Got you. 56.

0:18:110:18:15

57. No? 57, still with you, sir.

0:18:150:18:19

£57,000 then once...

0:18:190:18:21

£57,000 twice...

0:18:210:18:24

Third and final time, £57,000.

0:18:240:18:27

-HE BANGS GAVEL

-You bought it, sir. Well done.

0:18:270:18:30

# Let's try again... #

0:18:300:18:32

The successful bid of £57,000 was made by Ben.

0:18:320:18:35

He and his wife, Emma, have bought this, their eighth property.

0:18:350:18:40

We first met Ben and Emma in 2012

0:18:400:18:43

when they bought a fire-damaged property in Telford

0:18:430:18:47

which proved to be rather tricky.

0:18:470:18:49

But, clearly, it hasn't stopped them trying an auction buy again.

0:18:490:18:53

Time to find out their plans for this nice flat.

0:18:530:18:55

# Let's try again... #

0:18:550:18:59

Ben, Emma, good to meet you. Again.

0:18:590:19:02

-But first of all, who's this little chap?

-This is Monty.

-Monty.

0:19:020:19:08

-How old is Monty?

-He's seven months old.

-Seven months old.

-Yeah.

0:19:080:19:12

So, the last time we met, you didn't have Monty.

0:19:120:19:16

-No, just the other two girls.

-Right, so new addition to the family.

-Yes.

0:19:160:19:21

Bit of extra work, bit less sleep.

0:19:210:19:25

-Right, but you've also got a new baby with this place.

-Yes, indeed.

0:19:250:19:29

Tell me why you wanted to buy this one.

0:19:290:19:32

It just seemed like a nice flat in a reasonable area at a good price.

0:19:320:19:38

Doesn't need much doing to it.

0:19:380:19:40

We got our fingers burnt last time, taking on a bit too much.

0:19:400:19:43

Right. Last time we saw you, you got your fingers burnt a bit or...

0:19:430:19:47

Yeah, we probably shouldn't have bought that particular house,

0:19:470:19:50

-so it's the first time we've been to auction since then.

-Oh, wow.

0:19:500:19:53

What happened? What went wrong?

0:19:530:19:55

It was a fire and smoke-damaged house,

0:19:550:19:57

so we didn't quite appreciate the implications of that.

0:19:570:20:00

-We thought a bit of wiping down the walls and job done.

-Right.

0:20:000:20:05

-But what was the reality?

-Well, it wasn't as bad as it could have been.

0:20:050:20:09

Quite a lot of replastering, a lot of very expensive sealants

0:20:090:20:13

and it just took forever, didn't it?

0:20:130:20:16

Yeah, specialist paints

0:20:160:20:17

and lots of extra expense that we just didn't know about.

0:20:170:20:20

-And the big one was it wasn't mortgageable...

-Oh, wow.

0:20:200:20:22

..which we hadn't realised at the time we bought it,

0:20:220:20:25

-so it caused a certain amount of stress.

-No kidding!

0:20:250:20:28

So it's been three or so years

0:20:280:20:30

before you ventured back into the auctions.

0:20:300:20:32

Did it turn out all right in the end? Did you make any money on it?

0:20:320:20:35

Er, yes, I think so. I think we made a reasonable return.

0:20:350:20:38

Probably, we could have earned as much just doing a paper round

0:20:380:20:41

or something but... Some time taken, but it's fine.

0:20:410:20:44

It's a good buy-to-let house and it's a good house to have.

0:20:440:20:47

OK, so you moved on to this one which, on the face of it,

0:20:470:20:51

-is in pretty good condition.

-Yeah, that's what we thought.

0:20:510:20:54

Is that one of the things that attracted you to it?

0:20:540:20:56

I wasn't at the auction. Ben went on his own.

0:20:560:20:59

He vaguely said he wanted to see a flat

0:20:590:21:01

just to see what the land was like and he went on his own

0:21:010:21:05

and came back and said, "I've bought a flat."

0:21:050:21:07

-I was like, "Oh, good."

-So you didn't know.

-No.

0:21:070:21:11

So, were you happy when you saw it?

0:21:110:21:13

I saw it yesterday for the first time,

0:21:130:21:15

-so yeah, it's much better than I thought it would be.

-Right.

0:21:150:21:18

Ben did lead me to believe it was key-ready.

0:21:180:21:21

Yeah, I remember it being totally immaculate,

0:21:210:21:23

ready to give a key to someone and thank you very much.

0:21:230:21:26

Seems to have deteriorated a bit since I last saw it, but...

0:21:260:21:29

It must be the mice!

0:21:290:21:30

You must be the ultimate person who wears rose-tinted spectacles

0:21:300:21:34

-when you go round to look at houses.

-I think so, yeah.

0:21:340:21:36

Because judging by the experience,

0:21:360:21:39

the only experience I've had with you is they haven't been quite as...

0:21:390:21:42

No, they seem to differ on the second viewing but, you know.

0:21:420:21:46

So, what's the plan for this place? What are you going to do to it?

0:21:460:21:49

-Ideally, as little as possible, just redecoration...

-Yeah.

0:21:490:21:53

Fix the obvious issues, tart it up a bit -

0:21:530:21:56

new lino in the kitchen and bathroom, regrout the bathroom.

0:21:560:22:00

Fairly basic stuff really.

0:22:000:22:02

-Probably a budget of £2,000-£2,500.

-Right.

-And then get it let out.

-OK.

0:22:020:22:06

# Now we've got to keep it simple and that's that... #

0:22:060:22:10

Thankfully, this does look like a far more straightforward proposition

0:22:100:22:14

than the last auction property they bought.

0:22:140:22:16

However, there was, last time, I recall,

0:22:160:22:19

a question around Ben's DIY skills.

0:22:190:22:22

Now, who's going to do the work? Cos last time we did discover

0:22:240:22:27

that you weren't the world's best DIY-er.

0:22:270:22:30

Yeah, I can probably manage slapping some emulsion on the wall

0:22:300:22:33

but we've got another...

0:22:330:22:36

This is property eight now.

0:22:360:22:39

-We've done a few others not through the auction.

-Right.

0:22:390:22:41

We bought a few others not via the auction,

0:22:410:22:43

so we've got a team of builders who have done general work.

0:22:430:22:47

-Is your DIY getting any better?

-MONTY BURBLES

0:22:470:22:50

-Not really.

-Monty knows! He just said.

0:22:500:22:54

Thanks for the input, Monty.

0:22:540:22:56

Ben will be getting the builders in,

0:22:560:22:59

so he'll not be testing his DIY skills.

0:22:590:23:02

He also has a painter and decorator lined up

0:23:020:23:04

and the timescale will depend on his availability.

0:23:040:23:07

Once it's done, it'll be rented out.

0:23:070:23:10

Do you know what rental you might achieve?

0:23:100:23:13

Er, hoping for about £475.

0:23:130:23:17

But potentially a good turn?

0:23:170:23:18

Yeah, we're hoping for something approaching a 10% yield

0:23:180:23:21

which is kind of what we hunt for

0:23:210:23:23

so that we can get the mortgages paid off within 10 years or so

0:23:230:23:27

and hopefully retire at some point, but that's a long way away.

0:23:270:23:30

-Congratulations on lots of levels.

-Thank you very much.

0:23:300:23:33

The house and the baby.

0:23:330:23:34

-We look forward to seeing how you get on.

-Wonderful.

0:23:340:23:37

-Nice to see you again.

-You too. Thank you.

-Nice to meet you.

0:23:370:23:41

So, an unfortunate experience at the auction last time

0:23:440:23:48

didn't put Ben and Emma off from visiting again

0:23:480:23:51

and I think they've done really well in this instance.

0:23:510:23:54

Not too much work to be done,

0:23:540:23:56

which is just as well when it comes to Ben's DIY.

0:23:560:24:00

And, of course, they've got Monty to help out.

0:24:000:24:02

How will it all turn out? You can find out later in the show.

0:24:020:24:06

Coming up, this Ealing flat is taking me

0:24:070:24:10

all the way back to the '80s.

0:24:100:24:12

I would have been listening to Duran Duran

0:24:120:24:15

and wearing ra-ra skirts in those days.

0:24:150:24:17

And whatever era the wallpaper was from in Wellington,

0:24:180:24:21

someone has decided it was catch of the day.

0:24:210:24:24

Monty particularly liked the fish, so we thought we'd go with it.

0:24:240:24:27

There's no place like No Place.

0:24:330:24:35

And it's to No Place we're now returning.

0:24:350:24:39

This small village in northern County Durham

0:24:420:24:44

is home to this two-bed terrace house which was up for sale at auction

0:24:440:24:49

for a mouthwatering guide price of only £20,000.

0:24:490:24:52

The village definitely had a cool name

0:24:540:24:56

but this house's kitchen was even cooler.

0:24:560:24:59

Into the kitchen and it's definitely colder in here. There's no heating.

0:25:000:25:04

I have read the legal pack

0:25:040:25:06

and I know for certain there's no insulation on this flat roof.

0:25:060:25:10

Aiming to bring a little warmth to proceedings

0:25:110:25:14

are sisters Charlotte and Sophie who bought this place for £24,000.

0:25:140:25:19

They put up the cash

0:25:190:25:21

but would be relying on their dad, Neil, to put up the muscle.

0:25:210:25:25

Our dad's going to do most of the work cos he's a builder

0:25:250:25:29

-and has his own company.

-What will he do for you?

-All of it, really.

0:25:290:25:33

And then we'll do the decorating.

0:25:330:25:35

MUSIC: Diamonds by Rihanna

0:25:350:25:38

The house was dated and in need of a new kitchen and bathroom

0:25:380:25:42

but it presented the girls with a great opportunity

0:25:420:25:44

to begin their property portfolio.

0:25:440:25:46

With a budget of £8-10,000, they aimed for a finish of six months.

0:25:490:25:54

And guess what, one month ahead of schedule, we're back to see

0:25:550:26:00

how first-time property developers Charlotte and Sophie have fared.

0:26:000:26:04

Well, I'm actually speechless.

0:26:170:26:20

The girls have transformed

0:26:200:26:22

what was a very tired and old-fashioned house

0:26:220:26:25

into a bright and modern family home.

0:26:250:26:27

# Shine bright like a diamond Whoa

0:26:290:26:31

# Shine bright like a diamond Whoa... #

0:26:310:26:35

With its new tile job, the bathroom looks completely new.

0:26:350:26:38

But in fact, the old suite was in such good condition

0:26:380:26:42

that the girls decided to keep it,

0:26:420:26:44

adding new taps to spruce up the style.

0:26:440:26:46

Both bedrooms have had a complete makeover

0:26:490:26:52

with fresh new wallpaper and paint, new carpets and electrical fittings.

0:26:520:26:57

But my favourite room has to be the kitchen.

0:26:590:27:02

It's the girls' pride and joy and not just because it looks great.

0:27:020:27:07

An accident at work meant that dad was unable to help assemble

0:27:080:27:12

and fit the units, so it was all down to Charlotte and Sophie.

0:27:120:27:16

Dad fractured some of his ribs at work,

0:27:170:27:20

so it was a bit difficult when we were trying to fit the kitchen.

0:27:200:27:23

-The flat-pack kitchen, putting that together was...

-Challenging.

0:27:230:27:27

..challenging, yeah and a lot of the walls were out of plumb

0:27:270:27:30

in the kitchen, so nothing fitted right to the back of the wall.

0:27:300:27:34

We had to cut them down and fill them out.

0:27:340:27:37

It took a lot of time and effort and a lot of rubbish instructions.

0:27:370:27:42

MUSIC: Relight My Fire by Take That

0:27:420:27:44

Girls, we've all been there with flat-pack instructions.

0:27:440:27:49

Let's hope there are no bits left over though.

0:27:490:27:51

From flat-packs to flat roofs,

0:27:530:27:55

Neil recovered in time to insulate that problematic kitchen ceiling

0:27:550:27:58

and he replaced the roof felt for good measure.

0:27:580:28:02

A new window and door finished the job.

0:28:020:28:04

The half-height wall in the open-plan area was taken away

0:28:050:28:09

and instead of ripping out that old fireplace,

0:28:090:28:12

Charlotte spent four painstaking days turning it

0:28:120:28:15

from an eyesore into a fantastic focal point for the living room.

0:28:150:28:19

I stripped the fireplace as well and took it back to its original colour

0:28:200:28:25

and then that's all been waxed

0:28:250:28:27

and we've had some new slate as well for the hearth.

0:28:270:28:30

# Relight my fire

0:28:300:28:33

# Your love is my only desire... #

0:28:350:28:38

And as a finishing touch, the girls turned their attention

0:28:380:28:41

to that rather sad and nondescript backyard.

0:28:410:28:44

# Need your love... #

0:28:440:28:46

MUSIC: Lust And Lies by The Ramona Flowers

0:28:460:28:50

With some decking, paint and a few plants,

0:28:530:28:56

even the most unappealing garden

0:28:560:28:58

can be turned into an attractive outdoor space.

0:28:580:29:01

Very pretty.

0:29:010:29:03

When we first saw this house,

0:29:030:29:05

it seemed it could have had a simple redecoration job,

0:29:050:29:09

but appearances, as we know on Homes Under The Hammer, can be deceptive.

0:29:090:29:13

Initially, we didn't expect to have to take

0:29:140:29:17

all of the paper off right back to the brick.

0:29:170:29:20

We've had to replaster basically the whole house.

0:29:200:29:23

When we first started stripping all the walls,

0:29:230:29:26

we noticed that there was a leak running down

0:29:260:29:28

and when my dad had a look, the whole ceiling just came down

0:29:280:29:31

and there'd been a leak coming from the toilet in the bathroom.

0:29:310:29:34

I think it had been there quite a while.

0:29:340:29:36

So, we had to plasterboard all the ceiling

0:29:360:29:38

before we could then plaster it.

0:29:380:29:40

Completing the project

0:29:450:29:47

a month ahead of their original six-month timescale

0:29:470:29:50

is testament to the girls' hard work and project management.

0:29:500:29:53

But has keeping control of their £8-10,000 budget

0:29:540:29:58

-been a piece of cake?

-We actually spent about £12,000.

0:29:580:30:01

That's because we had to have things done like plastering the whole house

0:30:010:30:05

and originally,

0:30:050:30:07

we thought it would only be the odd room that might need doing.

0:30:070:30:10

We finished things to quite a high standard as well,

0:30:100:30:12

so we spent a bit more on finishing.

0:30:120:30:14

I think the girls have unearthed a little diamond

0:30:160:30:20

in this former coalmining area.

0:30:200:30:22

But will it dazzle two of the local property experts

0:30:220:30:25

we've invited along to give us their valuations?

0:30:250:30:28

I'm very impressed with the work

0:30:280:30:30

that the vendors have done on the property.

0:30:300:30:32

I think the standard of the finish is very high

0:30:320:30:34

and it'll certainly attract the right type of buyer to the property.

0:30:340:30:37

The layout is very traditional in a terrace-style property,

0:30:370:30:41

although it has had an extension to the kitchen.

0:30:410:30:43

It's been refurbished to a very high standard

0:30:430:30:45

and it's excellent living space for a family.

0:30:450:30:48

Charlotte and Sophie bought this house for £24,000

0:30:490:30:52

and have spent £12,000 on its renovation,

0:30:520:30:56

bringing their total spend to £36,000.

0:30:560:30:59

Has this been a good investment?

0:30:590:31:01

On today's market, the property would be marketed at £64,950

0:31:030:31:08

and for rent, it would be on the rental market

0:31:080:31:11

for £375 per calendar month.

0:31:110:31:14

On the sales market I would expect this property to achieve

0:31:140:31:16

in the region of £60,000 and on the rental market,

0:31:160:31:19

I would expect the property to achieve

0:31:190:31:21

in the region of £350 per calendar month.

0:31:210:31:24

Although a rental value of £350 per calendar month

0:31:260:31:29

would bring in a return of 11.5%,

0:31:290:31:32

the girls are content to sell and move on.

0:31:320:31:35

With that top valuation,

0:31:350:31:37

they could be looking to make a pre-tax profit of £29,000,

0:31:370:31:42

which would be a great start to their property development scheme.

0:31:420:31:45

We've already been looking at other properties

0:31:450:31:48

and hopefully we'll pick something up at auction again

0:31:480:31:51

and carry on doing the same thing.

0:31:510:31:53

Welcome to Ealing in West London.

0:31:580:32:00

It's long been a popular suburb

0:32:000:32:02

due to its leafy streets and busy town centre,

0:32:020:32:06

giving rise to the nickname the Queen of the Suburbs.

0:32:060:32:09

-# And we'll never be royals

-Royals

0:32:100:32:14

# You can call me Queen Bee

0:32:140:32:16

-# And, baby, I'll rule

-I'll rule, I'll rule, I'll rule

0:32:160:32:20

# Let me live that fantasy... #

0:32:200:32:23

And this popularity, along with property prices, is set to increase,

0:32:240:32:29

as in 2019, the new Crossrail high-speed rail link

0:32:290:32:32

will cut journey times to the city centre to just 11 minutes.

0:32:320:32:37

The property I'm here to see

0:32:380:32:40

is a couple of miles from the nearest Crossrail station

0:32:400:32:43

and it's on this fairly busy main road,

0:32:430:32:45

but its W5 postcode is still desirable,

0:32:450:32:49

albeit it is kind of on the boundaries

0:32:490:32:52

between Ealing and Brentford.

0:32:520:32:54

But the property itself is a two-bedroom flat.

0:32:540:32:56

It's on the first floor of this purpose-built block

0:32:560:32:59

and it went to auction with a guide price of £250,000 plus.

0:32:590:33:04

These flats were built in the 1980s

0:33:070:33:09

and the grounds look pretty well-kept.

0:33:090:33:11

And the good news is there's a parking space

0:33:110:33:14

allocated in the communal car park.

0:33:140:33:16

So, that's the outside. What about the inside?

0:33:160:33:20

So, let's have a look around the flat. Well, good size single.

0:33:210:33:25

It certainly is a single there. We've got a double bedroom here.

0:33:250:33:29

Ooh, we have got a pink bathroom!

0:33:290:33:32

Yes, that probably needs a repaint and a new shower, a new loo,

0:33:320:33:37

a new sink. You could do with upgrading all of that in there.

0:33:370:33:40

The doors also need replacing. And a really nice lounge. A big space.

0:33:400:33:46

Not a lot to write home about. It's a bit bland.

0:33:460:33:49

This is built in the '80s, typical of what you'd expect.

0:33:490:33:52

Kitchen through here. Again, some very dated units, painted yellow.

0:33:520:33:58

You could really give that a good old face-lift.

0:33:580:34:01

Over here we've got single glazed windows.

0:34:010:34:04

They're broken and because there's a busy main road out there,

0:34:040:34:07

you can hear a lot of the road noise,

0:34:070:34:09

you can hear the wind howling.

0:34:090:34:11

If there is a chance to upgrade those windows,

0:34:110:34:13

I would certainly try and do that.

0:34:130:34:15

This flat is typical of the '80s era.

0:34:150:34:18

I would have been listening to Duran Duran

0:34:180:34:21

and wearing ra-ra skirts in those days.

0:34:210:34:23

Ooh, that's a scary thought!

0:34:230:34:25

# Please, please tell me now

0:34:270:34:29

# Is there something I should know?

0:34:290:34:33

# Whoa... #

0:34:340:34:35

Well, like my ra-ra skirt, this is past it and needs updating

0:34:350:34:40

but, like Simon Le Bon, it's still in good nick.

0:34:400:34:44

Still, if you were looking to buy this,

0:34:440:34:47

there IS something you should know.

0:34:470:34:49

Now, like a lot of flats, this property is leasehold

0:34:500:34:54

and, unfortunately, there's only 71 years

0:34:540:34:57

left to run on the current lease.

0:34:570:34:59

Mortgage companies hate short leases,

0:34:590:35:02

so if you opted to do this flat up and sell on,

0:35:020:35:05

without paying for a lease extension,

0:35:050:35:07

then you'd probably have to sell to a cash buyer

0:35:070:35:09

which certainly narrows the market you're selling to

0:35:090:35:12

and it'll have a negative effect on the sales price.

0:35:120:35:15

So, your best option is to cough up the cash for that longer lease.

0:35:150:35:19

So, this auction lot isn't quite as straightforward

0:35:210:35:24

as it first appeared.

0:35:240:35:26

It's time we got the opinion of a local estate agent.

0:35:260:35:29

What does he think of the property, guided at £250,000 plus?

0:35:290:35:34

The main things of focus here would be

0:35:360:35:38

it will require a new kitchen,

0:35:380:35:39

it certainly would benefit from a new bathroom.

0:35:390:35:42

Unfortunately, with this type of building,

0:35:420:35:44

replacement windows is quite difficult to do.

0:35:440:35:47

Management companies would have to be involved.

0:35:470:35:50

You may or may not get the permission to do that,

0:35:500:35:52

so noise could, potentially, be an issue.

0:35:520:35:55

And what about that short-term lease?

0:35:550:35:58

A 71-year lease is now going to be considered far too short.

0:36:000:36:04

Anything less than about 80 years now,

0:36:040:36:07

lenders will be very reluctant to lend upon.

0:36:070:36:09

# Just give me just a little more time

0:36:090:36:13

# And our love will surely grow... #

0:36:130:36:16

Assuming the lease extension would cost £20,000

0:36:160:36:21

on top of the guide price of £250,000 plus,

0:36:210:36:24

what could this flat be worth?

0:36:240:36:26

So, once done up, I would expect this property to achieve

0:36:270:36:30

somewhere in the region of £395,000.

0:36:300:36:33

When this property is put back on the rental market,

0:36:330:36:36

I would expect to achieve a figure

0:36:360:36:38

of somewhere around £1,295 per calendar month.

0:36:380:36:42

Well, this two-bedroom flat needs an update

0:36:430:36:46

and that 71-year lease could be a bit of a sticking point with buyers.

0:36:460:36:50

But it's a good little flat and it could prove to be popular.

0:36:500:36:53

Let's head to auction and find out who bid for this one.

0:36:530:36:56

A well-located two-bedroom first-floor flat.

0:36:560:36:58

I've seen this one myself. It's a good renter, this. Great location.

0:36:580:37:03

270 anywhere? Right, 240 then, try and help.

0:37:030:37:06

Thought it was cheap. 240 I've got. 245 anywhere?

0:37:070:37:11

245. 250, yeah? 250.

0:37:110:37:15

255? I'll come to you. 255.

0:37:150:37:17

This property was proving popular and soon the price shot up.

0:37:170:37:21

We rejoin the bidding at £307,000.

0:37:210:37:25

307. How much? 308, yeah? 308, back in.

0:37:250:37:29

309 on the floor. 310.

0:37:290:37:33

311, thank you. At 311. 312? No?

0:37:330:37:36

It's with you again, sitting on the floor here on my extreme right.

0:37:360:37:40

311 for the first...

0:37:400:37:42

311 for the second...

0:37:420:37:44

311 for the third and final time. All done?

0:37:440:37:48

-HE BANGS GAVEL

-Sold. 311. Well bought.

0:37:480:37:51

The flat went for a final value of £311,000.

0:37:510:37:55

So, who was the mystery bidder? Well, it was Bal.

0:37:560:38:01

MUSIC: Sweet Little Mystery by Wet Wet Wet

0:38:010:38:05

We met up with him and his son, Tom, to find out more.

0:38:070:38:11

# It's just that sweet little mystery

0:38:110:38:14

# That makes me try.. #

0:38:140:38:17

-Bal, congratulations.

-Thank you.

0:38:170:38:19

We didn't actually see you at the auction. Were you there?

0:38:190:38:22

I was. I was sitting in a no-film zone

0:38:220:38:24

because it was the only seat available.

0:38:240:38:26

So you were being naughty. You were hiding from us.

0:38:260:38:28

Just in case you were wondering what a no-film zone is,

0:38:280:38:31

we always try to respect bidders' wishes not to be filmed at auction

0:38:310:38:35

by reserving part of the room our cameras avoid.

0:38:350:38:38

But this was a busy, busy room on the day,

0:38:380:38:41

hence Bal having to bid from there.

0:38:410:38:43

He was looking for a property to live in with his son Tom,

0:38:430:38:46

aged four and a half.

0:38:460:38:48

But this wasn't the one he intended to buy.

0:38:480:38:52

I wanted one of three others but I was outbid,

0:38:520:38:55

-so I got this one instead.

-Had you even looked at this property before?

0:38:550:38:59

-No.

-You hadn't even seen it?

-I knew nothing about it.

0:38:590:39:01

-So you purely went on the photograph?

-Yes.

0:39:010:39:03

So, why did you think, "I'll go with my gut.

0:39:030:39:05

"I think this will be a good one to bid for"?

0:39:050:39:07

Just cost and because I live in a one-bedroom flat

0:39:070:39:09

and now I need more space, I thought,

0:39:090:39:11

"If I can go for two that would be great."

0:39:110:39:13

So, obviously, now you've got a nice room for Tom here,

0:39:130:39:15

is this going to be your family home?

0:39:150:39:17

Possibly, and if I don't like it,

0:39:170:39:20

I will move out of London and buy a house.

0:39:200:39:24

I promised Tom a house, a small house

0:39:240:39:26

with chickens at the end of the garden.

0:39:260:39:28

And I'm a country person and I've lived in London for so long,

0:39:280:39:34

all over it, but it would be nice to go and just...

0:39:340:39:39

I like green fields and woodlands and that sort of stuff.

0:39:390:39:43

Well, as lovely as Ealing is,

0:39:430:39:46

it's not quite the country idyll Bal hopes for.

0:39:460:39:48

But it does seem to fulfil his current needs

0:39:480:39:51

and it's another step up the property ladder

0:39:510:39:54

and closer to his end goal.

0:39:540:39:55

And, besides, Tom looks like he's got comfy already.

0:39:550:39:59

So, what are his plans to turn this into a home for him and Tom?

0:39:590:40:03

Maybe replace the windows cos you open them and then they crack.

0:40:040:40:08

I realise that's one issue.

0:40:080:40:10

Tickle up the kitchen,

0:40:100:40:12

do something with the carpets which are horrendous,

0:40:120:40:16

the bathroom needs a major sort-out

0:40:160:40:19

and, apart from that, I don't know.

0:40:190:40:22

Now, you mentioned a tickle-up in the kitchen.

0:40:220:40:25

I think it needs a bit more than a tickle-up.

0:40:250:40:26

So, what are you going to do in there?

0:40:260:40:28

Are you going to drastically change it or will funds not allow you?

0:40:280:40:32

-Funds don't really allow me to do a lot.

-Mmm.

0:40:320:40:34

But I'll come back again with a pen and paper

0:40:340:40:36

and I'll write down what I think I can do

0:40:360:40:39

and maybe bring somebody in that renovates places.

0:40:390:40:43

So, how much budget have you got to spend in here?

0:40:430:40:46

-Nil.

-So, you've got nothing? You spent all your money on auction day?

0:40:460:40:49

Yes, I've got nothing left but I can work that one out somehow.

0:40:490:40:53

Oh, Bal, you're breaking all the Homes Under The Hammer rules.

0:40:530:40:57

First you buy without viewing

0:40:570:40:59

and now you've not left a budget to renovate?

0:40:590:41:01

Mind you, over the years,

0:41:010:41:03

Bal has done up many a property he has lived in,

0:41:030:41:06

including one that was almost derelict,

0:41:060:41:09

so that side of things doesn't faze him.

0:41:090:41:11

What about that short lease?

0:41:120:41:14

I've spoken to the solicitor and he gave me a price

0:41:170:41:20

of bumping up the lease, but I can't do that yet.

0:41:200:41:23

-So, how much is it to bump the lease?

-About £17-20,000.

-Ooh.

0:41:230:41:27

-That's what he said.

-Were you expecting that?

0:41:270:41:30

Mmm... The last lease I bumped up was £53,000,

0:41:300:41:35

so £17-20,000 isn't bad.

0:41:350:41:37

Bal seems pretty relaxed and will sort out the lease later,

0:41:370:41:42

as he knows it could make a big difference to any eventual resale.

0:41:420:41:46

In the meantime, the exciting thing is,

0:41:460:41:49

this is going to be a home for him and Tom.

0:41:490:41:51

So, how many months, days, weeks is it going to be

0:41:510:41:54

before you guys move in here?

0:41:540:41:56

I think it'll take a month, maybe, or six weeks, perhaps.

0:41:560:41:59

So, have you always been involved in property, Bal,

0:41:590:42:01

or have you had other jobs as well?

0:42:010:42:03

I've had lots of other jobs, one of which was at Buckingham Palace.

0:42:030:42:07

I was senior footman at Buckingham Palace.

0:42:070:42:09

I had the privilege of travelling the world

0:42:090:42:11

with Her Majesty the Queen

0:42:110:42:13

and I was on Princess Diana's carriage in 1981

0:42:130:42:16

going to the church.

0:42:160:42:18

Marvellous job and the loveliest job I've ever had.

0:42:180:42:22

It was really great and it sets you up for life.

0:42:220:42:25

It teaches you so many things,

0:42:250:42:27

so I was very grateful for that opportunity.

0:42:270:42:29

What kind of things does it teach you? Tell me.

0:42:290:42:31

I don't know. A way of being, communication,

0:42:310:42:34

everything, all life skills, which is not bad.

0:42:340:42:38

-And I'm sure you've met a lot of the lovely Royal Family.

-All of them.

0:42:380:42:41

-Tell me what they're like.

-Great, really, really nice people

0:42:410:42:45

and a wonderful family to work for.

0:42:450:42:47

-Bal, it's been wonderful meeting you.

-Thank you very much.

0:42:470:42:50

-Good luck and I hope you and Tom are very happy here.

-OK, thank you.

0:42:500:42:53

Well, from working in Buckingham Palace

0:42:530:42:56

to possibly living in the Queen of the Suburbs, Ealing,

0:42:560:42:59

Bal certainly has his royal connections,

0:42:590:43:02

but will he and Tom be able to turn this place into a palace?

0:43:020:43:06

And that short lease - will it be a problem for them?

0:43:060:43:09

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

0:43:090:43:13

Now, there are endless reasons

0:43:150:43:17

why property renovations can take a lot longer than expected.

0:43:170:43:20

Yeah, even the most straightforward projects

0:43:200:43:23

can hit unexpected complications.

0:43:230:43:25

Will the remaining two buyers stick to their deadlines? Let's find out.

0:43:250:43:29

Back now to the historic town of Wellington

0:43:330:43:37

on the outskirts of Telford.

0:43:370:43:39

Just five minutes' walk from the local railway station

0:43:390:43:42

was this two-bed top-floor flat

0:43:420:43:44

that had an attractive guide price of £50,000.

0:43:440:43:47

Now, usually a low guide price would have my alarm bells ringing,

0:43:490:43:52

but this well-proportioned flat was in really good order,

0:43:520:43:56

despite some fairly fishy wallpaper choices.

0:43:560:43:59

Plenty of people were happy to dive in on auction day

0:44:000:44:04

with the property eventually selling for £57,000.

0:44:040:44:08

You bought it, sir. Well done.

0:44:090:44:11

That bid was made by father-of-three Ben.

0:44:130:44:16

He and his wife, Emma, had appeared on the show back in 2012

0:44:160:44:19

and had struggled with a fire-damaged property,

0:44:190:44:22

but Ben wasn't put off

0:44:220:44:24

and was raring to go with his latest purchase.

0:44:240:44:27

# You keep on trying, darling

0:44:270:44:29

# Keep on trying... #

0:44:290:44:31

Ben did lead me to believe it was key-ready.

0:44:310:44:34

Yeah, I remember it being totally immaculate,

0:44:340:44:36

ready to give the key to someone and thank you very much.

0:44:360:44:39

Seems to have deteriorated a bit since I last saw it but...

0:44:390:44:42

Must be the mice!

0:44:420:44:44

You must be the ultimate person who wears rose-tinted spectacles

0:44:440:44:47

-when you go round to look at houses.

-I think so, yeah.

0:44:470:44:50

Because judging by the experience,

0:44:500:44:52

the only experience I've had with you,

0:44:520:44:54

is they haven't been quite as...

0:44:540:44:56

No, they seem to differ on the second viewing but, you know.

0:44:560:44:59

# I'm looking at the world through rose-coloured glasses

0:44:590:45:03

# Everything is rosy now... #

0:45:030:45:07

Ben is obviously a glass-half-full kind of guy,

0:45:070:45:11

but I remember all the trouble he had last time, not to mention,

0:45:110:45:15

by his own admission, his somewhat questionable DIY skills.

0:45:150:45:20

This was a different prospect altogether though,

0:45:200:45:23

with the couple earmarking a budget of £2,000-£2,500

0:45:230:45:26

and a timescale of just one to two weeks

0:45:260:45:29

to get this property ready for the lettings market.

0:45:290:45:32

Six weeks on, we return to see

0:45:350:45:37

if our own second viewing is going to be a positive one.

0:45:370:45:40

Wow! This has been made into the ideal rental property,

0:45:580:46:03

with a well-executed neutral decoration plan throughout.

0:46:030:46:07

I'm happy to say the majority of that rather garish wallpaper

0:46:140:46:18

has been replaced and the property now looks clean, fresh and bright.

0:46:180:46:23

Although in the bathroom, that fishy wallpaper has clung on.

0:46:270:46:30

It may not be everyone's cup of tea,

0:46:300:46:33

but it adds a certain amount of charm and character.

0:46:330:46:36

I can't wait to hear from Ben and Emma

0:46:390:46:41

and, of course, Monty to see how it's all been.

0:46:410:46:44

We've cleaned the place up. We've stripped everything.

0:46:460:46:48

The hall, stairs and landing, all the wallpaper's come off.

0:46:480:46:51

Everything's been painted.

0:46:510:46:53

Bathroom and kitchen just had a quick tidy-up and that's it.

0:46:530:46:57

In the bathroom, we decided to leave the wallpaper.

0:46:570:47:00

Monty particularly liked the fish, so we thought we'd go with it,

0:47:000:47:03

but we've given it a bit of a clean-up, replaced the taps,

0:47:030:47:07

put a new toilet in, replaced in behind the sink,

0:47:070:47:10

and it just looks brighter and cleaner.

0:47:100:47:12

This is the couple's eighth property, so they are no novices

0:47:120:47:16

but Ben, by his own admission, is not the world's best DIY-er,

0:47:160:47:20

so did he resist the urge to get his hands dirty?

0:47:200:47:25

Yes, I was hoping to repair my DIY reputation

0:47:250:47:28

by doing some of the work but it didn't really happen in the end.

0:47:280:47:31

We pretty well handed the keys to our builder.

0:47:310:47:33

My role, really, was just buying it on auction day

0:47:330:47:36

and manipulating the finances,

0:47:360:47:38

so we could actually afford to pay for it come completion day.

0:47:380:47:42

Emma's role was bossing the builder around

0:47:420:47:46

and the builder did everything else.

0:47:460:47:48

A big part of property renovation is knowing what you can do

0:47:480:47:51

and what's best left to the professionals,

0:47:510:47:54

which Ben has clearly taken on board.

0:47:540:47:57

But with Emma taking on management duties,

0:47:570:47:59

how's their £2,000-£2,500 budget and one to two-week timescale looking?

0:47:590:48:05

We spent £1,700, so we're quite happy with that.

0:48:050:48:08

In terms of timescales, it took about three and a half weeks

0:48:080:48:11

which was about what we were expecting.

0:48:110:48:13

-We're quite happy with the time.

-Hmm.

0:48:130:48:16

It seems that Ben and Emma have found this project

0:48:170:48:20

as easy as taking candy from a baby.

0:48:200:48:23

With the couple keen on letting,

0:48:230:48:25

but with an eye on selling the property in the future,

0:48:250:48:28

will a total investment of around £58,700 prove a wise one?

0:48:280:48:33

We asked along two local estate agents to take a look,

0:48:340:48:37

starting with the agent who saw it originally.

0:48:370:48:40

Second time I've visited the property.

0:48:400:48:43

Overall, the changes that have been carried out

0:48:430:48:46

are OK for a rental standard.

0:48:460:48:48

It's been pretty much what looks like a quick makeover,

0:48:480:48:51

decoration throughout and some new floor coverings.

0:48:510:48:56

Kitchen's, bathroom's pretty much the same,

0:48:560:48:59

apart from the toilet in the bathroom,

0:48:590:49:01

which I can see has been replaced.

0:49:010:49:03

But, as I say, pretty much acceptable for rental standards.

0:49:030:49:06

The standard of the finish is good.

0:49:060:49:08

Kitchen, bathroom, very neat and tidy,

0:49:080:49:11

a lot better than others I've seen in the area,

0:49:110:49:13

so I'd say the condition is good for the area.

0:49:130:49:15

Time to get some numbers then. Let's start with sales valuations.

0:49:150:49:19

I would expect the property to achieve £70,000 to £75,000.

0:49:190:49:23

If this was to go on the open market today,

0:49:230:49:25

I would expect this property to achieve £75,000.

0:49:250:49:29

If it did achieve that top valuation,

0:49:290:49:31

it would mean a pre-tax profit of £16,300,

0:49:310:49:35

which for three and a half weeks' work isn't too bad at all.

0:49:350:49:39

But for the time being, the couple are looking at the rental market.

0:49:390:49:43

I'd expect the property to achieve, as a rental,

0:49:430:49:45

£475-£495 per calendar month.

0:49:450:49:49

If this property was to go on the rental market,

0:49:490:49:52

I would suggest a marketing price of £495 per calendar month.

0:49:520:49:57

That top rental estimation would mean a yield of over 10%,

0:49:570:50:01

which makes Ben and Emma's second go at buying at auction

0:50:010:50:04

a resounding success.

0:50:040:50:06

So, with baby Monty taking a well-earned nap, let's hear

0:50:060:50:10

how Ben and Emma are feeling about property renovation now.

0:50:100:50:13

It's good fun, I think. It's turned out OK.

0:50:150:50:18

It's a nice flat, we've made a reasonable profit, if we sell it,

0:50:180:50:22

or it's a good buy-to-let investment, so we're pretty happy.

0:50:220:50:25

Back to Ealing, the queen of London suburbs now.

0:50:310:50:35

Earlier, I saw a two-bed flat valued at £250,000 plus.

0:50:350:50:39

But outside and inside,

0:50:390:50:40

the flat reminded me of a time when shoulder pads, fingerless gloves

0:50:400:50:44

and crimped hair were all the rage. I had them all.

0:50:440:50:47

Yep, if you were a New Romantic, you'll remember it well.

0:50:470:50:51

This flat is typical of the '80s era.

0:50:530:50:56

But, back in this decade,

0:50:560:50:58

Bal paid £311,000 for the property at auction.

0:50:580:51:03

He planned to make this the family home for himself and his son, Tom,

0:51:030:51:07

and it might be palatial, given his background.

0:51:070:51:10

I was senior footman at Buckingham Palace.

0:51:120:51:14

I had the privilege of travelling the world with Her Majesty the Queen.

0:51:140:51:17

Marvellous job and the loveliest job I've ever had.

0:51:170:51:20

# Prince Charming, Prince Charming

0:51:200:51:23

# Ridicule is nothing to be scared of... #

0:51:230:51:27

No, there wasn't anything to be scared of,

0:51:270:51:29

as Bal had experience renovating two properties before.

0:51:290:51:33

Well, nothing except the less than princely sum of his budget.

0:51:330:51:37

So, how much budget have you got to spend in here?

0:51:370:51:41

-Nil.

-You've got nothing? You spent all your money on auction day?

0:51:410:51:44

Yes, I've got nothing left but I can work that one out somehow.

0:51:440:51:48

Oh, dear.

0:51:480:51:49

And somehow, he might have to factor in the renewal of the lease

0:51:490:51:53

which only had 71 years left. That was a long-term issue.

0:51:530:51:57

But how has he got on in the short term, namely six weeks on?

0:51:570:52:02

From the outside, I can see those broken windows have been repaired,

0:52:020:52:06

but what about inside?

0:52:060:52:07

OK, so I know what you're thinking.

0:52:190:52:21

Much of it looks the same, but this was a property

0:52:210:52:25

where there was more subtle but essential work needed,

0:52:250:52:28

as Bal explains.

0:52:280:52:31

I have recarpeted, put a new boiler in,

0:52:320:52:36

bought a washing machine, put a new bathroom in,

0:52:360:52:39

got rid of the death trap in the cupboard which blew the fuse box.

0:52:390:52:42

Death trap?

0:52:420:52:43

There's a description you never want to hear about your electrics.

0:52:430:52:47

So what happened?

0:52:470:52:48

The electrical box was in a cupboard

0:52:480:52:50

and it collected electricity at night, but it didn't work

0:52:500:52:54

and it was connected somehow to the boiler which didn't work

0:52:540:52:59

and the bathroom didn't work, so nothing worked.

0:52:590:53:01

So, I've replaced the boiler,

0:53:010:53:04

got rid of that storage thing in the cupboard.

0:53:040:53:07

The electrics have been checked. I need to finish the painting.

0:53:070:53:11

The kitchen sink has gone in, the oven now works.

0:53:110:53:15

I'm changing the handles on the kitchen cupboards

0:53:150:53:18

and I'm doing another coat of paint in there.

0:53:180:53:20

I'm not sure what colour, but not lemon yellow. It was horrendous.

0:53:200:53:25

I'm glad the flat's decor is coming into this decade.

0:53:260:53:29

Bal reluctantly had to change the carpets, as they were beyond saving.

0:53:290:53:33

I made a mistake with the measurements for the carpet in here,

0:53:330:53:37

so they had to put an inset into this room, but it's OK.

0:53:370:53:41

Bal's learning curve extended to the bathroom,

0:53:410:53:44

where he decided to replace the bathroom suite.

0:53:440:53:48

I made a mistake with the bathroom measuring.

0:53:480:53:50

They put the floor down before I bought the new one so, of course,

0:53:500:53:53

I had to put a little in-fill in there too, so it's not my forte.

0:53:530:53:58

I've been quite hands-on with this project

0:53:580:54:00

because I bought the bathroom suite with a friend of mine

0:54:000:54:03

and she helped me -

0:54:030:54:05

not that she knew anything about it either, but we helped each other.

0:54:050:54:08

I now know a lot about sink traps and bath traps

0:54:080:54:11

and shower attachments and I know what they're all called

0:54:110:54:14

and so, if I ever have to do this again, I'll be a bit wiser.

0:54:140:54:18

And he went two weeks over his timescale,

0:54:180:54:21

due to waiting for tradespeople

0:54:210:54:22

for the parts he couldn't do himself.

0:54:220:54:25

So, now that tough question - how's that nonexistent budget looking?

0:54:250:54:30

My original budget was zero,

0:54:300:54:32

borrow as much as you can from friends, so I did.

0:54:320:54:38

But then I borrowed a bit more, then I said,

0:54:390:54:41

"Well, can you just pay for this for me, please?"

0:54:410:54:44

So, now I've got to pay it back.

0:54:440:54:46

I think, in total, I have spent probably about £7,000 or £8,000,

0:54:460:54:52

which I think is reasonable.

0:54:520:54:54

That's what friends are for,

0:54:540:54:56

although I'd like to know your generous mates, Bal.

0:54:560:54:59

Is the plan still for him and his son, Tom, to move in?

0:54:590:55:03

Right now, I plan to finish this flat, then I could rent this out

0:55:030:55:07

for six months and then wait until I start working,

0:55:070:55:10

so either way, I think something will work.

0:55:100:55:13

So, with that plan in mind,

0:55:140:55:15

Bal will be keen to know what rental figures he could get.

0:55:150:55:18

Time to ask two local estate agents

0:55:180:55:21

their opinion of the property,

0:55:210:55:22

starting with the agent who saw it the first time.

0:55:220:55:25

I think the property now has improved substantially

0:55:250:55:29

on what it first appeared when I originally inspected it.

0:55:290:55:33

Obviously, it'll be repainted, new doors.

0:55:330:55:35

Nice to see the current owner has put a brand-new bathroom suite in

0:55:350:55:39

to a very good standard.

0:55:390:55:40

I think it would have been nice to have, perhaps, seen

0:55:400:55:43

a new kitchen go in, however, it has been improved substantially.

0:55:430:55:47

So, we've got a new boiler, new bathroom,

0:55:470:55:50

new carpet and flooring, which is good.

0:55:500:55:52

I can see there are a few areas that just need to be finished off.

0:55:520:55:56

One outstanding issue is that short lease.

0:55:560:55:59

Bal was advised it could cost around £17,000 to extend it.

0:55:590:56:03

That would mean more borrowing. So, what would the agent advise?

0:56:030:56:08

My advice would be to speak to the freeholder,

0:56:080:56:11

find out how much the lease extension's going to cost,

0:56:110:56:14

advertise the property with the full lease,

0:56:140:56:16

so that you can get maximum exposure and the best price

0:56:160:56:20

and then pay for the lease extension on the draw-up to exchange,

0:56:200:56:23

so then he gets his money back for the lease extension,

0:56:230:56:26

first-time buyers get a property with a long lease

0:56:260:56:30

and they pay the going rate for the property in the local area.

0:56:300:56:33

If he fails to do that, then the only people, really,

0:56:330:56:36

who's going to be looking to purchase this property

0:56:360:56:39

is going to be a cash buyer or an investor.

0:56:390:56:41

If we include the cost of the lease,

0:56:410:56:43

the total investment in this flat would come to £336,000.

0:56:430:56:47

The agents think that, with that extension,

0:56:470:56:50

it could sell for between £375-400,000.

0:56:500:56:55

And that would mean Bal stands to make,

0:56:550:56:58

based on that top figure, a pre-tax profit of £64,000.

0:56:580:57:02

But Bal thinks he might rent

0:57:020:57:04

so, leaving the lease cost aside for that calculation,

0:57:040:57:08

what are those figures like?

0:57:080:57:10

I would expect it to achieve somewhere in the region

0:57:110:57:14

of £1,400 per calendar month.

0:57:140:57:17

Rental expectation for the property

0:57:170:57:19

would be in the region of £1,400-£1,500 per calendar month.

0:57:190:57:23

It's a little higher than I thought, but if it could go for that,

0:57:230:57:28

that would be great, if only for six months.

0:57:280:57:30

At an average of £1,400 per calendar month,

0:57:300:57:34

Bal would see a 5% yield.

0:57:340:57:36

After renting for six months, they might move in -

0:57:360:57:40

that is if the contractors get the painting finished.

0:57:400:57:43

I will keep this for six months,

0:57:440:57:46

possibly convert the flat that I'm living in,

0:57:460:57:48

which doesn't belong to me, and stay there or move here

0:57:480:57:52

or rent it for six months or sell it, if I can sort out the lease.

0:57:520:57:56

I don't know what to do, but I'm doing something.

0:57:560:57:59

Who knows? I might win the lottery!

0:57:590:58:02

Have these stories struck a chord with you?

0:58:060:58:08

Could you be inspired to take on a project of your own?

0:58:080:58:11

Well, we will have more property auction buyers for you next time.

0:58:110:58:15

-You never know, it could be you.

-See you soon.

-TOGETHER:

-Goodbye.

0:58:150:58:19

Download Subtitles

SRT

ASS