Episode 47 Homes Under the Hammer


Episode 47

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Transcript


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It's amazing how property developing can start just as a hobby

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and can end up being a full-blown career.

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Being your own boss brings with it loads of advantages

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and it's great fun.

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However, it can bring risks.

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Yes. So, if you are thinking of dabbling, where do you start?

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Why not buy under the hammer?

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I know we say this a lot

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but doing your research is the best way to avoid

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unwelcome surprises, especially when you're bidding in an auction room.

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So, did today's buyers follow our advice?

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Let's see what they bought.

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Today, it's the terrible twos.

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Why has this two-bedroom semi in Ilkeston, Derbyshire,

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got two front doors?

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No idea.

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This two-bed cottage in Margate, Kent, is filled to the brim.

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Stuff everywhere, but not a bad kitchen.

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It does have that, sort of, cottagey feel.

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And this one-bed flat in Telford, Shropshire,

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has too many stairs for some, including...

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ex-professional footballers, like myself, that have got dodgy knees.

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All of these properties have been sold at auction.

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

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when they went under the hammer.

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You bought it, madam. Well done.

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Close to Derby and Nottingham, the market town of Ilkeston

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used to have coalmining and ironworks at its heart.

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In fact, right now, you're probably only a few hundred yards away

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from a manhole cover made here and, like towns of its ilk,

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Ilkeston's former council estates form a significant part

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of its housing stock.

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So, five minutes from the centre of Ilkeston,

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is where I find myself.

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What does £55,000 buy you around these parts?

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Well, that was the guide price for this place.

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It's a mid-terraced two-bedroom.

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Let's have a look.

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OK. So, what have we got?

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A little entrance area here.

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Front to back living room, although I have to say, first glance,

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it doesn't look like it's very wide.

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Hmm. Very strange.

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Stairs up to your bedrooms there

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and then through into your kitchen.

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Surprisingly, the kitchen feels disproportionately big.

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It's actually quite a nice space.

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You've got a cupboard here... Oh! Well, it's not a cupboard.

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Well, I didn't expect that.

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It's another door. Another front door.

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What was the design criteria here, do you think?

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No idea.

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One thing for sure, though,

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I think that wall there needs to be taken down.

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Obviously, get a structural engineer to check that it's not supporting.

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Take that down, open the kitchen up even more

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to create a really nice space.

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But there is still this whole issue with the fact that...

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Oh, I don't know... One, two, three, four,...

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It must only be about four-and-a-half metres wide.

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Wow!

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Onwards and upwards.

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I suppose you might say the kitchen's OK,

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if you like a touch of the blues.

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BLUES GUITAR

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# You'd better come on in my kitchen

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# Well, it's bound to be raining outdoors... #

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Yeah!

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Upstairs, the narrow width of the house is less noticeable.

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So, upstairs, and two pretty decent-sized bedrooms,

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a bathroom and loo that has been converted for disabled use

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and, then, into this bedroom here

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and...the only real big negative I've found so far with the property.

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Look at this. On this wall.

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Lots of signs of damp. Penetrating damp, obviously.

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It doesn't take a rocket scientist to work out it's coming down.

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It's a long way for it to come up.

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And it's probably something to do with a few roof tiles

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that have slipped. Maybe a gutter that's leaked.

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What is a bit worrying is that it has actually come through

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where there should be a cavity wall.

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So, definitely, get in the loft, investigate that.

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Get outside. Get somebody to check it out

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and sort that out sooner rather than later.

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# Sooner or later

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# You're gonna have to stand up tall

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# Sooner or later

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# When your back's against that wall... #

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The basic function of a cavity wall's air space

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is to keep water and moisture away from the inner wall.

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A porous outer wall

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or, as I said, roof problems

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are the most likely causes here.

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But what the house lacks in damp-proofing,

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it makes up for in the front door department.

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It has a 100% increase in that category

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but I am glad to report it's only got one back door.

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So, out the back of the property, I wonder if we can

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do anything about that feeling of slight...lack of width, basically.

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I guess, you could contemplate some kind of an extension.

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Next door certainly seems to be slightly deeper.

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You are going to have potential issues

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with the fact that there's a window there.

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Next door haven't got anything going on.

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I don't know if that's a starter for ten, or not.

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But you have got a really nice surprise, which is this garden.

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Look at that! It goes on for absolutely ages.

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I'd like to see a slightly higher fence on either side

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to make it a bit more private, but all in all, it's an added bonus.

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I think, just think through about that whole extension issue,

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whether or not it'd be financially and planning approval-wise possible.

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We called in not just any local expert

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but the auctioneer who sold the house.

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He knows to use the left-hand front door.

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I'm interested to hear what he thinks about the house

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and that penetrating damp.

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Well, we're standing in a lovely kitchen with 1980s tiling.

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So the kitchen needs modernising.

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The bathroom has already been done,

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although it has become a wet room, effectively. It needs decorating.

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The heating system would appear to be good.

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The electrics, I think, are OK. It's double glazed,

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although possibly not up-to-date specification.

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There actually isn't a great deal to do.

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A lot of it is superficial.

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The only issue I'm aware of is some penetrating damp

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in one of the bedrooms upstairs

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and I think that's a guttering issue.

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Hey! Ha-ha! I said it was probably guttering, didn't I?

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What's the local market like?

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Erm, the local market's quite buoyant.

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There's always a demand for investment property.

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So, this property is bound to appeal to somebody

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who would buy it to rent it out.

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That's encouraging. With the guide price of £55,000,

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what would it be worth when modernised?

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Ultimately, its value would be

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something in the order of £80,000-£85,000.

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So there could be room for a decent profit if you want to resell

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and, given it's a good rental area, what could one expect there?

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Again, once renovated, it would have a rental value

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in the order of £475, £500 a calendar month.

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In that sort of area.

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So, pleasant location, pleasant little property.

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Nice little project for someone.

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Let's see who fancied taking it on when it went under the hammer.

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Lot 18. Closer to home.

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A two-bedroomed, PVC double glazing, gas centrally heated accommodation.

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A very sensible guide price of 55-plus, designed to sell it.

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Start me at 55. 55?

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54? 52?

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Bid me where you like. 52,000.

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Thank you.

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At £52,000? 53 in front of me. 53 is bid. 54 on the left.

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55? 55, 56.

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Once started, the bidding climbs rapidly.

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We rejoin the action when we reach £67,000.

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At £67,000, for the first time.

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500.

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67.5, 68.

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68.

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500. It's going to go. 69.

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Is that it? £69,000. For the first time.

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Second time. 69.5.

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It's worth another shot.

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He's at the end of his leash. 70,000. Well, he may not be.

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70,000. 500, sir? Prove me wrong.

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£70,000. 500.

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At 70 and a half. Nothing more?

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£70,500. Once...

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twice...

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third time.

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Sold at 70 and half. Number 11, thank you.

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And it was first time lucky at auction for couple Trevor and Marie.

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I feel a tad responsible for their venture into property,

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as they say they got their inspiration

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from watching Homes Under The Hammer.

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So, I'm glad to meet them at their first auction purchase

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to find out their plans for their £70,500 house.

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-Marie, Trevor, good to meet you both.

-Likewise.

-Good to meet you.

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-Congratulations.

-Thank you.

-Tell me why you wanted to buy this house?

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We decided that that the 2% we're getting just isn't good enough.

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-Not enough.

-So we're going to try...

-Dip our toes in the water.

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Dip our toes there. Yes. This'll be...

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the first of many on our portfolio.

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-Brilliant. Good.

-Hopefully.

-So, why this area?

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-Are you local?

-Tamworth.

-OK.

-We come from Tamworth.

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So, what tempted you to Ilkeston?

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Erm...

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I think the prices of the houses was cheaper here

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than they were where we are. So...

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And why this particular house?

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-The least amount of work.

-For us to have to do, yeah.

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And...er, this would be the one to start off with.

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But, when we've got here today, we've realised

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-there's just a little bit more work than we thought.

-Really?

-Yeah.

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How come you missed it on first viewing?

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-Oh...

-It's only a ten-minute window, wasn't it? Really.

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-It just seemed a bit quick.

-So, what did you miss?

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I missed the size of the garden.

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It's quite good, isn't it?

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-Yeah. It's too big.

-Oh.

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-There's a few damp issues.

-Quite a bit of damp.

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We did see the damp, but we didn't realise there was...

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Probably got to be replastered, so we'll be going down the line of...

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I've got to go on a skimming course, I expect, to do that.

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-Oh, right.

-Yeah.

-Yes.

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Or we get a plasterer in, one or the other.

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Probably get a plasterer in,

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-because Marie actually wants it done yesterday, not today.

-Aah!

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-Should be finished now. Is that right?

-It is.

-Yes.

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Right. Wow.

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So, apart from those small things you didn't see,

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-are you still quite happy?

-Yes.

-We're excited about it, yeah, yeah.

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-Yes, apprehensive but excited, as well.

-Yeah.

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The auction must have been good fun.

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She was there to control me and she was going, "Go on. More, more, more."

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-Are you happy with what you paid?

-Yeah, yeah. I think so.

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-Just about.

-I don't think we'd have gone any more, would we?

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-No, that was the last.

-That was the last bid.

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So, tell me, what you are planning to do to it, then?

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-We will have an electrician coming, won't we?

-Yes. Checks.

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-Check all the wiring. Um...

-The gas. For the gas.

-The gas.

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-Then have a new bathroom, new kitchen.

-Yeah.

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Just plaster and tidy up, really.

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We're going to have a look at the kitchen.

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Thinking, maybe, knocking that wall out, making the kitchen a bit bigger.

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We're going to have to have a structural engineer in,

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as we've seen you say on the TV before.

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Because it looks like it's going to fall down.

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If were going to knock it out.

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Check it first, then knock it down.

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Thinking of doing that. Hoping we can make that a bit bigger.

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Get rid of the rail out of the front. Tidy the gardens up.

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Hopefully, be able to rent it out when it's finished.

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-That's the plan, is it? You've bought it to rent.

-Yeah.

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Well, Marie and Trevor seem to be giving all the right answers here.

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Their plan to rent ties in with what the auctioneer said.

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Trevor is approaching retirement,

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so he's hoping to do a lot of the manual work himself,

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but they will get in specialists when it comes to plumbing,

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electrics and knocking down walls, but all that will come at a cost.

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So, what's the budget for the work?

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-We say about five.

-OK.

-Pounds.

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If only. New kitchen, new bathroom. Plumbing work, skimming.

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-Mm-hm.

-Electrics, if it needs it. Five grand, could be tight.

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Yes, going to be tight, but we are going to do it. We will do it.

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Who's going to do the work?

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I'm going to do some of the work, obviously.

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You know, I will mainly be taking the wallpaper off.

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And Marie will be mainly moving the heavy stuff out.

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THEY LAUGH

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-Because she is very well built.

-Ah, well, that's useful.

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A bit of a workhorse. Excellent.

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-Get the whip out.

-OK. And what's the timescale?

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Well, I was hoping something between six to eight weeks.

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-Marie was more going eight to 12 weeks.

-I say 12 weeks.

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Listen, congratulations.

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-Thank you.

-Good luck with it. Nice to meet you.

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-Thank you.

-Thank you.

-We've inspired you along the way.

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-Thank you.

-Thank you.

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It's always nice when Homes Under The Hammer inspires people

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to enter the world of property, and that's certainly what we seem to

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have done with Trevor and Marie, and I think they've chosen well here.

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A few unexpected things they're going to have to do

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to sort the place out,

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but really, I don't think it's going to be too much of a challenge.

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

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Where might you find an art gallery celebrating landscape artist

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Turner's work,

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the UK's oldest rollercoaster ride and original pleasure park,

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and other seaside attractions?

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Yes, it's Margate, on the Kent coast.

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Just a leisurely five-minute walk from the beachfront

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is this leafy little hideaway.

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Now, one of the big bonuses is that you've got a cul-de-sac here.

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And you're not going to have loads of traffic roaring past.

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So what have we got? Well, it's a mid-terrace house up for auction.

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It's in need of modernisation and improvement. You can see that.

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And the guide price, £40,000-£50,000.

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Now, that suggests that there may be a fair amount of work

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needing to be done inside. Let's go and have a wander about.

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Oh, OK, house is slightly full up with lots of stuff.

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Yes, bags everywhere, so whoever takes this on is really going to need

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to think about getting all the stuff out so you can see beyond it all.

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You've got a good size lounge through there.

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The kitchen, again, stuff everywhere,

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but not a bad kitchen, it does have that sort of cottagey feel.

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There is a downstairs bathroom through there.

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So, with a lot of reorganising, tidying, cleaning,

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polishing and skips, could have quite a nice little cottage here.

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Well, I know they play bingo at the seaside,

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but this place takes the term "full house" to a whole new level.

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I keep telling myself not to look at all the stuff

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but to see through it into the space beyond.

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That's what makes the difference between a developer who can see

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the potential and a frightened novice.

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So I'm going to stay positive with this property,

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I'm looking through the disrepair and the peeling wallpaper, and

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I am looking at this really lovely little banister and staircase.

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I mean, it is really cottagey.

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How nice is that? I can imagine, painted and sanded back,

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this will be a really nice feature.

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But something I've got to show you. Look! Look at that jungle!

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That needs to be sorted out, quickly.

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So upstairs, we've got much of the similar sort of vein

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of what's going on downstairs, lots of stuff everywhere.

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But a good size room here, another one to the front of the property.

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And something I can really, really notice.

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There's lots of bubbling and peeling wallpaper.

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You can see right through to the rafters, daylight is coming in.

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I think there's been some water damage

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to the front of the property through there.

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So whoever takes this on really should have a good old look,

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up there in the roof.

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We asked a local estate agent to come and look past

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all the negatives in this house and give us his assessment.

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My view on the property is it needs quite a lot of work.

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It's going to be worth the while, though,

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because it is a nice little house in a reasonable area.

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Once it is renovated,

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I'm sure it will provide a very nice little home for someone.

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Given a full renovation, what's the demand for a property like this?

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Within the area, there's very good demand

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for this type of property, both as a purchase,

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as a buy-to-let investment, or for first-time buyers.

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Also for rental, there's very high demand.

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High demand usually translates into good valuations,

0:17:240:17:27

and is that the case with this house, guided at £40,000 to 50,000?

0:17:270:17:30

If the property were fully refurbished to a good standard,

0:17:320:17:35

I think it could sell for about £120,000,

0:17:350:17:39

or it could achieve in the region of £600-£625

0:17:390:17:42

per calendar month rental.

0:17:420:17:45

Well, the property inside leaves a lot to be desired.

0:17:450:17:48

A lot of skips and a lot of clearing out needs to be done.

0:17:480:17:51

I wouldn't blame you if you wanted to spend most of your time

0:17:510:17:53

down at the beach looking at the skies, rather than in there,

0:17:530:17:56

but with some imagination, a splash of paint and some budgets,

0:17:560:18:00

I could see this place being turned into a masterpiece.

0:18:000:18:04

So who wanted to jump on the rollercoaster of redevelopment

0:18:040:18:07

when it went under the hammer?

0:18:070:18:09

Lot 3 we go to now. In Margate.

0:18:090:18:13

It's a mid-terrace house for improvement.

0:18:130:18:15

And it really is here to be sold.

0:18:150:18:17

It's got a guide of 40 to 50. Do I see £50,000?

0:18:170:18:19

I've got a few telephone bids on this one, I think.

0:18:190:18:21

Can I see £50,000 to start me? £50,000, I'm on the way.

0:18:210:18:25

60,000. 55 I will take. 55 do I see?

0:18:250:18:29

55, and 60, Ben. And five.

0:18:290:18:32

65. 65 and 70.

0:18:320:18:35

The packed auction house ensures that the guide price

0:18:350:18:38

of 40,000 to 50,000 is soon left behind.

0:18:380:18:41

We rejoin the bidding at £84,000.

0:18:410:18:44

First time at £84,000.

0:18:440:18:47

Second. Third.

0:18:470:18:49

85. Oh, on the internet.

0:18:490:18:51

I thought you were going to pull my leg then.

0:18:520:18:54

85, 86. It's on the internet.

0:18:540:18:58

With internet and telephone bids,

0:18:580:19:00

it's difficult to keep up with the action.

0:19:000:19:02

We rejoin again as the internet bidder takes it up to £89,000.

0:19:020:19:08

89. And a half.

0:19:080:19:11

89,500. And 90.

0:19:110:19:13

If not, at 89,500 for the first time.

0:19:130:19:16

89,500 for the second time. Third and final time.

0:19:160:19:20

Have they had enough time to come through if they wanted to?

0:19:200:19:23

At 89,500, all done.

0:19:230:19:24

Now, we didn't catch the bidder on the day,

0:19:240:19:26

but it was Michael, who's been on the show before.

0:19:260:19:29

He's an estate agent and developer based in London.

0:19:290:19:33

Last time, he bought this three-bedroom terrace in 2013,

0:19:330:19:36

also in Margate.

0:19:360:19:38

And as you can see,

0:19:380:19:40

Michael is no stranger to properties needing more than a lick of paint.

0:19:400:19:43

This time, I arranged to meet him at his latest purchase,

0:19:530:19:56

that cost £89,500.

0:19:560:19:58

Lovely to see you again.

0:19:580:20:00

-Lovely to see you again, yes.

-Congratulations.

-Thank you.

0:20:000:20:03

-Tell me what you've been doing recently.

-I've been quite busy.

0:20:030:20:06

We like to concentrate on social housing, renovating,

0:20:060:20:08

upgrading, enhancing. But we are fans of Margate.

0:20:080:20:11

We think we can really make it swing,

0:20:110:20:14

and we want aspirational people to move in here.

0:20:140:20:16

And how do you go about finding those people that are aspirational?

0:20:160:20:19

Well, fortunately, because we've been working here

0:20:190:20:22

for the last ten, 12 years,

0:20:220:20:23

there are people asking us for properties all the time.

0:20:230:20:26

And it is very sad to, you know, like with Oliver Twist,

0:20:260:20:29

saying no when they're coming up asking for something.

0:20:290:20:32

Michael is of course developing and letting property as a business,

0:20:320:20:35

but he's keen to create decent housing that benefits

0:20:350:20:38

the area as a whole and makes it a reasonable place to live.

0:20:380:20:41

The most important thing, though, is to have settled communities,

0:20:430:20:46

improved accommodation and a situation where people feel

0:20:460:20:49

that they can stay for one to three years.

0:20:490:20:52

This is very important, if kids are going to a school,

0:20:520:20:54

that they don't have a disrupted education.

0:20:540:20:56

And for people, in terms of employment.

0:20:560:20:58

Employment has changed a great deal.

0:20:580:21:00

Although there's less opportunities than there were

0:21:000:21:02

in the sort of area, there's now many more chances for people

0:21:020:21:05

to work at home with broadband internet IT,

0:21:050:21:08

and this is the sort of thing we'd like.

0:21:080:21:10

OK. Now, that all moves me on quite nicely to talk about

0:21:100:21:13

what you're going to be doing here.

0:21:130:21:15

For starters, I know you'll be getting a few skips outside the door.

0:21:150:21:18

This here is going to give the skip industry of Margate a field day.

0:21:180:21:22

-Just a bit.

-There's so much ephemera.

0:21:220:21:25

But there's a lot of stuff here you could maybe give to somebody else.

0:21:250:21:28

There's loads of kids' books around.

0:21:280:21:29

It needs to be, you know, gone, out of the door

0:21:290:21:32

so you can see what the house is like.

0:21:320:21:34

We are going to be careful in any personal effects,

0:21:340:21:36

which we'll try to pass on to whoever used to live here.

0:21:360:21:39

And anything that is of any innate value, we wouldn't want

0:21:390:21:42

to throw away because we live in a cosmetic society

0:21:420:21:44

where there's too many things thrown away, so let's make use of them.

0:21:440:21:47

# Oh, yeah

0:21:470:21:49

# I got the empty tidy bag blues... #

0:21:490:21:54

Yep, I have to agree, it's a utopia of ephemera. Upstairs...

0:21:540:21:58

# Oh, yeah

0:21:590:22:01

# I got the empty tidy bag blues... #

0:22:010:22:06

..and downstairs as well actually.

0:22:060:22:08

# Well, I've been sleeping on the job

0:22:080:22:12

# And I wish I had a better excuse. #

0:22:120:22:17

So Michael will be recycling or upcycling as part of this project,

0:22:180:22:22

but he's also aware of a very interesting plus with this house.

0:22:220:22:27

I think the nicest thing about this is actually the title deeds,

0:22:270:22:30

it is a freehold. So essentially we can do what we want.

0:22:300:22:33

Quite a lot of property, certainly in London and the south-east,

0:22:330:22:36

is leasehold, and it is very, very tricky.

0:22:360:22:38

There are managing agents, there are freeholders.

0:22:380:22:40

Here, you're in control of your own destiny

0:22:400:22:42

and you can make it into a really nice cottage home.

0:22:420:22:44

My concerns are, you know,

0:22:440:22:46

you don't know to what extent the damage of the roof.

0:22:460:22:49

You've got problems outside, you can't even get into the garden.

0:22:490:22:52

I mean, are you worried the more you unpick,

0:22:520:22:54

the more problematic it may be?

0:22:540:22:56

I'm not a doctor, but I sometimes need a second opinion.

0:22:560:22:58

I'll be getting my builders to have another look at it

0:22:580:23:01

because there are issues with the roof,

0:23:010:23:03

and I know there is a downpipe that needs attention.

0:23:030:23:05

So, yes, there will be things, but that's life, isn't it?

0:23:050:23:08

-# That's life

-That's life

0:23:080:23:10

# That's what all the people say... #

0:23:100:23:13

As well as Michael getting builders in, I think he's going

0:23:130:23:16

to have to get landscape gardeners in too.

0:23:160:23:18

Tackling this lot isn't going to be a walk in the park.

0:23:180:23:21

More like a rumble in the jungle, and Michael is planning on

0:23:210:23:25

doing this house and the garden in just six weeks.

0:23:250:23:28

Good luck with that one.

0:23:280:23:30

What sort of money do you think you may have to sink into this?

0:23:320:23:35

What budget have you got?

0:23:350:23:36

I know it's the unknown and the unseen at this stage,

0:23:360:23:39

-but what do you think?

-We are looking at about 12,000 to 15,000.

0:23:390:23:42

-Oh!

-But, as I've said, there could be things.

0:23:420:23:45

We'd have, of course, a new bathroom, a new kitchen.

0:23:450:23:49

With the bathroom, we're hoping to put some nice marble tiles down.

0:23:490:23:53

Not exactly a wow factor, but something a little bit different.

0:23:530:23:56

Otherwise it'll be a reasonable finish, of an average standard,

0:23:560:23:59

but safe, secure and hopefully pleasant.

0:23:590:24:02

And you really think you can get it all in on budget for around 15,000?

0:24:020:24:06

Never say never, but one always...

0:24:060:24:08

Hope springs eternal in the human race.

0:24:080:24:10

I think there could be things that we find, such as details about

0:24:100:24:14

the roof, that could cause problems, but let's hope for the best.

0:24:140:24:17

What about things like windows?

0:24:170:24:19

I'm looking there and I'm feeling that that may need replacing.

0:24:190:24:23

A lot of the frames are decayed.

0:24:230:24:25

I mean, how far are you going to go? The boiler, for example.

0:24:250:24:28

There are lots of things around here that may need updating.

0:24:280:24:31

Well, the government is changing regulations

0:24:310:24:34

so that all private rented accommodation quite soon

0:24:340:24:37

will have to pass a particular thermal insulation standard.

0:24:370:24:40

We will make sure this passes it now, before the regulation changes,

0:24:400:24:44

and if that means changing the windows, so be it.

0:24:440:24:46

And of course if the boiler is no good, we'd have to change that anyway.

0:24:460:24:49

Now, you've mentioned marble tiles. Is that the aspirational look and feel you want for the property?

0:24:490:24:53

Well, the tenants here won't be living in Marble Arch.

0:24:530:24:56

It would be particularly nice if they have some nice tiles in the bathroom.

0:24:560:24:59

It's only a very small bathroom,

0:24:590:25:01

and the cost is not going to be enormous.

0:25:010:25:03

We can't give them gold, but marble, I think, would be a nice substitute.

0:25:030:25:07

There's a few bits and pieces. Nice doors, you've got little fireplaces.

0:25:070:25:12

There is a certain amount of character, not too much,

0:25:120:25:14

it doesn't hit you between the eyes, but there's something that's

0:25:140:25:17

-quite cottagey about this place, isn't there?

-I think it's cosy.

0:25:170:25:22

You know, some people use that as a euphemism for small.

0:25:220:25:24

But I think this is a nice, traditional family home,

0:25:240:25:27

where you can actually enjoy the ambience and the pleasure,

0:25:270:25:30

but not in its current condition certainly.

0:25:300:25:32

When it is redone, it will be lovely.

0:25:320:25:35

Oh, I look forward to seeing it clear, I really do.

0:25:350:25:37

Lovely to see you again, Michael.

0:25:370:25:38

Thank you very much indeed. Thank you.

0:25:380:25:40

It may seem like this is a standard two-up, two-down property,

0:25:420:25:46

but Michael plans to turn this into a desirable family home,

0:25:460:25:51

but that budget of £12,000-£15,000 is low,

0:25:510:25:54

considering there could be a lot more to uncover in there.

0:25:540:25:58

Join me later in the programme

0:25:580:25:59

and you can find out how Michael gets on.

0:25:590:26:03

Still to come, in Telford, I show how to make

0:26:030:26:05

this one-bed flat's kitchen fit for gourmet dining.

0:26:050:26:09

Bit of elbow grease, tidy it up, pop a cooker in.

0:26:090:26:12

And Michael's taking the gourmet chef approach himself

0:26:140:26:17

when it comes to managing his budget.

0:26:170:26:20

You can't sort of make an omelette without cracking eggs.

0:26:200:26:23

Earlier, I was in the market town of Ilkeston, Derbyshire,

0:26:270:26:30

where I took a look around this former local authority

0:26:300:26:34

two-bedroom, semi-detached house,

0:26:340:26:36

which was sold at auction for £70,500.

0:26:360:26:40

And there was a surprise in the kitchen.

0:26:400:26:44

Got a cupboard here.

0:26:440:26:45

-Oh, it's not a cupboard.

-HE LAUGHS

0:26:450:26:48

Well, I didn't expect that.

0:26:480:26:50

It's another door. Another front door.

0:26:500:26:52

What was the design criteria here, do you think?

0:26:520:26:56

No idea.

0:26:560:26:59

Yes, at a time when many of the houses we featured on

0:26:590:27:02

Homes Under The Hammer were having bifold doors fitted at the rear,

0:27:020:27:06

the previous owners at this house

0:27:060:27:08

had simply made do with "bi-front" doors.

0:27:080:27:10

# It takes two, baby

0:27:130:27:16

# It takes two, baby... #

0:27:160:27:19

The duo taking on the challenge as the proud new owners of their first

0:27:190:27:23

property development were husband and wife team, Trevor and Marie.

0:27:230:27:28

Tell me what you are planning to do to it, then?

0:27:280:27:30

Have a new bathroom, new kitchen, and just plaster it.

0:27:300:27:34

Thinking about knocking that wall out and make the kitchen bigger.

0:27:340:27:38

We are going to have to have a structural engineer in, as we've seen you say.

0:27:380:27:42

-Check it first, then knock it down.

-Yeah. We are going to do that.

0:27:420:27:46

Tidy the garden up. Hopefully be able to rent it out...

0:27:460:27:49

-And that's the plan, is it? You bought it to rent?

-Yes.

-Yeah.

0:27:490:27:53

Marie and Trevor felt 12 weeks would see the house refurbished,

0:27:530:27:57

but we're back five months later to see their progress.

0:27:570:28:00

The kitchen is a much more usable and bright space, with new flooring.

0:28:050:28:10

In place of front door number two,

0:28:100:28:12

there's a window above a space for a small table.

0:28:120:28:16

Trevor and Marie are hoping that all the hard work

0:28:190:28:22

has given the house a clear message

0:28:220:28:24

to send out to all potential renters in the area.

0:28:240:28:27

# Come and get it if you really want it

0:28:280:28:30

# Come and get it if you really need it

0:28:300:28:32

# Come and get it if you really want it

0:28:320:28:35

# Come and get it if you really need it. #

0:28:350:28:37

Upstairs, the bathroom was more of a wet room

0:28:390:28:43

with tired fittings and tiling.

0:28:430:28:45

Now, there's a white suite with crisp tiling

0:28:490:28:52

and complementary flooring.

0:28:520:28:54

# Come and get it if you really want it

0:28:570:28:59

# Come and get it if you really need it

0:28:590:29:01

# Come and get it if you really want it... #

0:29:010:29:04

There's new flooring throughout,

0:29:040:29:06

and the damp problem in the bedroom has been cured.

0:29:060:29:09

The other bedroom, like the majority of rooms in the house,

0:29:130:29:16

has been replastered, and finally the lounge looks different again

0:29:160:29:21

after a clear-out and a new paint scheme.

0:29:210:29:23

One delay in the workflow was due to

0:29:260:29:28

their builder sustaining a back injury,

0:29:280:29:31

but their roofer did find a cure for their leaking guttering.

0:29:310:29:35

Unfortunately, what we had to do was some...

0:29:350:29:37

Actually lengthen the tiles on the roof, over the old guttering,

0:29:370:29:41

The concrete guttering.

0:29:410:29:42

New fascias, new plastic gutterings put down, new downpipes

0:29:420:29:45

and everything to make both the front and back good.

0:29:450:29:49

And that has stopped the damp.

0:29:490:29:51

Originally, Trevor felt the garden was too big,

0:29:510:29:54

so how did he get on with that?

0:29:540:29:56

We've dug the garden and strimmed it all back to make it look

0:29:560:29:59

presentable for whoever comes in and rents the place from us.

0:29:590:30:03

We think it looks good, we've had pebbles all put down where the concrete was all cracking.

0:30:030:30:07

We've had all that removed. And we've had sleepers all put in.

0:30:070:30:10

All the garden rubbish was bagged and then taken

0:30:100:30:13

through the house by Trevor, who did all the labouring.

0:30:130:30:17

His retirement date was delayed, which also contributed to

0:30:170:30:20

the delay in the schedule, but sometimes his help turned out to be

0:30:200:30:24

more of a hindrance, especially when he tidied up what he thought

0:30:240:30:28

were old wires after the electrician had fitted the new shower units.

0:30:280:30:32

Unfortunately, after he had fitted it all,

0:30:320:30:36

I cut several wires, and we had to have him back to redo the wiring.

0:30:360:30:39

-I'd actually...

-Cut.

-..cut and spoiled. So...

0:30:390:30:43

that put the cost up a bit as well. I'm pleased with everything.

0:30:430:30:47

Hopefully, who owns it will.

0:30:470:30:49

Speaking of costs, the refurbishment budget was £5,000.

0:30:500:30:55

-How's that looking?

-£9,640 exactly.

-Exactly.

0:30:550:31:00

Even though we might be spending a few more pennies.

0:31:000:31:02

The main overspends have been on the new guttering,

0:31:020:31:05

the higher-end kitchen and the replastering.

0:31:050:31:08

Trevor and Marie intend to rent,

0:31:100:31:12

so we called along two local estate agents to find out the valuations.

0:31:120:31:17

They paid £70,500 at auction and nearly another £10,000

0:31:170:31:21

on refurbishment, so anything above £80,500 would be good news.

0:31:210:31:27

If I was to place this property on the open market,

0:31:270:31:29

I'd recommend an asking price of £94,950.

0:31:290:31:34

In terms of sale, really ought to be asking

0:31:340:31:36

somewhere between £95,000 and £100,000 for the house.

0:31:360:31:40

-I'm amazed.

-Yes, me too. Shocked.

-Yeah.

-A nice shock.

0:31:400:31:46

Really, really good.

0:31:460:31:48

-If we get anywhere near 94,000, we'll be over the moon.

-Yes.

0:31:480:31:52

They're in shock. £94,950 was the lower valuation,

0:31:530:31:58

which looks like a potential profit of £14,000 upwards.

0:31:580:32:03

This could be a game changer.

0:32:030:32:05

Trevor and Marie originally wanted this to rent

0:32:050:32:08

as a way of improving on the 2% interest or so

0:32:080:32:10

they were getting at the bank, so rental values are key here.

0:32:100:32:14

I'd recommend a figure of £425 per calendar month.

0:32:150:32:19

There'd be a good market between £475 and £500 per calendar month.

0:32:190:32:24

-Well, the first rental value I think was...

-A little bit low.

0:32:240:32:27

A bit lower, yeah.

0:32:270:32:29

The other one I think is probably dead on what was expected.

0:32:290:32:33

Taking the higher figure,

0:32:330:32:35

that calculates as a yield on their investment of around 7.5%,

0:32:350:32:39

so they've achieved their goal. But which path will they be taking?

0:32:390:32:44

-We're going to put it on the market, see what we can do...

-Test it.

0:32:440:32:47

Test the market, as Mary says, and hopefully we can sell it,

0:32:470:32:52

have a little bit of a rest and then, believe it or not,

0:32:520:32:56

buy another one and have another crack.

0:32:560:32:59

Great. But maybe don't be as eager

0:32:590:33:01

with the wire cutters next time, eh, Trevor?

0:33:010:33:03

Telford in Shropshire is a new town

0:33:080:33:11

named after the Scottish civil engineer, Thomas Telford.

0:33:110:33:14

Close by is a settlement, Ironbridge, credited with heralding the dawn

0:33:150:33:19

of the Industrial Revolution.

0:33:190:33:21

# But you won't fool

0:33:210:33:23

# The children of the revolution

0:33:230:33:26

# No, no, no... #

0:33:260:33:28

But I'm here to view something a bit more up to date.

0:33:280:33:31

Not too far from the centre of Telford

0:33:320:33:34

is this 1970s housing development and the property I'm here to see.

0:33:340:33:38

It's a one-bed apartment in this quite smart block

0:33:390:33:42

and is guided at £33,000.

0:33:420:33:45

Formerly a local authority development, many of these flats

0:33:450:33:48

are now owned by housing associations or private landlords.

0:33:480:33:51

So, we're up on the second floor.

0:33:530:33:56

So it's not ideal for elderly folk or ex-professional footballers

0:33:560:34:00

like myself that have got dodgy knees, but good for security.

0:34:000:34:05

What have we got?

0:34:050:34:06

Bathroom just here. Needs a lick of paint and new flooring

0:34:060:34:11

but the suite itself you'd get away with keeping.

0:34:110:34:14

We have the bedroom just there.

0:34:140:34:17

That's a good-sized bedroom for a one-bed flat.

0:34:170:34:20

Needs a lick of paint again and some flooring...

0:34:200:34:24

and into the kitchen,

0:34:240:34:26

which again is a decent-sized kitchen.

0:34:260:34:29

If you're looking to rent it, I think you'd get away with

0:34:290:34:32

keeping how it looks at the moment.

0:34:320:34:34

A bit of elbow grease, tidy it up, pop a cooker in just there.

0:34:340:34:38

If you're looking to sell, you may have to spend

0:34:380:34:41

a little bit more money, put a brand-new kitchen in altogether,

0:34:410:34:44

but it's worth doing a bit of research.

0:34:440:34:46

Find out how much properties like this are selling in this area.

0:34:460:34:51

But there's a boiler there, so there is central heating in.

0:34:510:34:54

There's double glazing, as well.

0:34:540:34:56

Lick of paint and I think you'll be all right.

0:34:560:34:58

Let's check out the lounge.

0:34:580:35:00

So we're through into the lounge. Spacious again.

0:35:020:35:05

I do like the way this flat is proportioned.

0:35:050:35:08

For me, definitely a rental property.

0:35:080:35:11

It's a one-bed.

0:35:110:35:12

Normally you have a high turnover of tenants.

0:35:120:35:16

Families don't tend to rent out one-bedroom properties,

0:35:160:35:19

so in between tenants you tend to have a lot of maintenance.

0:35:190:35:22

So look for things that are easily maintained,

0:35:220:35:25

like this laminate flooring.

0:35:250:35:27

And if you are looking to replace anything in here,

0:35:270:35:30

I'd tend to recommend you didn't spend top dollar.

0:35:300:35:33

If you're thinking of buying to let, you have to factor in

0:35:350:35:37

the turnover of tenants, which means frequent painting and refreshing.

0:35:370:35:42

You've also got to consider any empty periods.

0:35:420:35:46

On top of that, you do have to think about the shared cost

0:35:460:35:49

around the fabric of the building and who looks after it,

0:35:490:35:53

otherwise, things like flat roofs can be a thorn in your side.

0:35:530:35:56

I've come out the back.

0:35:570:35:58

I just want to have a look up at that roof,

0:35:580:36:00

see if it's had any recent maintenance done to it,

0:36:000:36:04

and from what I can see, it has, which is great news.

0:36:040:36:07

And as I look around as well I can see that neighbouring buildings

0:36:070:36:10

have had the same work done, as well.

0:36:100:36:13

Cos costs like that can fall on the owner's shoulders

0:36:130:36:16

and can set you back a few quid.

0:36:160:36:18

In this case, it's thumbs up.

0:36:180:36:20

We called in a local estate agent to give the flat the once-over

0:36:220:36:25

and share his opinions and tell us what it's worth.

0:36:250:36:28

Remember, I said it really just needed a lick of paint?

0:36:280:36:31

I wonder if he'll agree.

0:36:310:36:33

# Here in my deep purple dream... #

0:36:330:36:37

There's not an awful lot to do to the property, really.

0:36:380:36:41

Purple walls and black walls don't really suit most kitchens

0:36:410:36:44

these days, so really it's just decoration.

0:36:440:36:48

Floor coverings pretty much to most of the rooms might be needed

0:36:480:36:52

but the living room floor I would leave as it is.

0:36:520:36:54

It's laminate flooring, so that's in pretty good order.

0:36:540:36:57

But it's double-glazed, gas-fired central heating,

0:36:570:37:00

pretty good for a house.

0:37:000:37:02

So, a quick spruce-up of the walls, floor coverings

0:37:020:37:05

and a few kitchen appliances if it's going to be a rental

0:37:050:37:09

and it should be good to go.

0:37:090:37:10

What would he say the values are?

0:37:100:37:13

Once the works have been carried out to the property

0:37:130:37:16

I would suggest this goes on the open market for £50,000.

0:37:160:37:20

And if the new owner decided to let the property out,

0:37:200:37:23

I would be suggesting to them a rental income

0:37:230:37:26

of around £400 per calendar month.

0:37:260:37:28

I do like this flat.

0:37:280:37:30

I think it's well-proportioned and spacious,

0:37:300:37:32

and I don't think it would take much to get it back up to scratch.

0:37:320:37:35

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

0:37:350:37:38

Lot 46. Back to Telford.

0:37:380:37:41

Let's say 30 to get it going.

0:37:420:37:43

28 then. Can we get it going at 28?

0:37:440:37:46

28 bid, thank you. At £28,000.

0:37:460:37:48

Can we say 30 now? The bid's at £28,000. Looking for 30. At 28.

0:37:480:37:54

30 bid, thank you. At £30,000. 32?

0:37:540:37:57

1, you're saying, 31.

0:37:570:37:59

32, 33,

0:37:590:38:02

34.

0:38:020:38:03

At £34,000 then to my right.

0:38:040:38:07

At £34,000. 35 anywhere else?

0:38:070:38:11

35. At 35 left. 36?

0:38:110:38:14

No. At £35,000, lady's bid standing right. 36 anywhere else?

0:38:160:38:22

If not, I'm selling it at £35,000 for the first time.

0:38:220:38:26

£35,000 for the second time.

0:38:260:38:29

Third and final time at £35,000...

0:38:290:38:32

-GAVEL BANGS

-You've bought it, madam, well done.

0:38:320:38:35

The successful purchasers with their £35,000 bid were Helen and Nick.

0:38:350:38:40

They live in the Telford area

0:38:410:38:43

and already have one rental property in their portfolio.

0:38:430:38:46

I met up with them to find out their plans for this one.

0:38:470:38:50

-Helen, nice to meet you.

-Hello, and you.

-Nick, nice to meet you.

-Hi.

0:38:500:38:53

-Congratulations, by the way.

-Thank you.

-Thank you.

0:38:530:38:56

Tell me, why this particular flat?

0:38:560:38:58

The price, I guess.

0:38:580:38:59

And it's going to be easy to do up and we're going to rent it out.

0:38:590:39:03

This area is pretty good.

0:39:030:39:04

We live in Telford, so anywhere in Telford's good, really.

0:39:040:39:07

Did you do a bit of research

0:39:070:39:09

in where's best to find a property, Nick?

0:39:090:39:11

We looked to find something that was reasonably cheap

0:39:110:39:15

that we felt we could do up and perhaps make some money off.

0:39:150:39:18

And from what I can see, I think you've chosen a good one,

0:39:180:39:21

-haven't you?

-Yeah.

-Yeah, there's not much to do here, is there?

0:39:210:39:24

First and foremost, tell me what actually got you into property

0:39:240:39:27

and what were you doing before property?

0:39:270:39:29

Well, I was a manager for a big warehouse

0:39:290:39:33

and Helen was a chef in the canteen.

0:39:330:39:37

Yeah, we worked in the same place and the warehouse shut,

0:39:370:39:41

-so we were both made redundant 15 years ago now.

-Really?

0:39:410:39:45

-We got married about five years ago.

-Good on you.

0:39:450:39:47

-Captured him, didn't you, sharpish?

-Yeah, yeah.

0:39:470:39:49

-Got a good catch there.

-Found a good 'un. Yeah.

0:39:490:39:52

And when did the property bug get you and who did it get first?

0:39:520:39:54

Oh, I don't know.

0:39:540:39:56

We've done up our own houses in the past

0:39:560:39:59

and we've moved from house to house for various reasons

0:39:590:40:03

and we've made good profits in that sort of thing,

0:40:030:40:06

and I think that's probably where the bug came from.

0:40:060:40:09

-It's a result of it, yeah.

-Yeah.

0:40:090:40:10

And we thought as soon as we were made redundant

0:40:100:40:13

it gave us an opportunity to move to this area, where it's a bit cheaper

0:40:130:40:17

than where we were, and do it for a living.

0:40:170:40:21

Where were you? Where were you living before?

0:40:210:40:23

In Surrey or Berkshire and it's very busy down there.

0:40:230:40:26

We wanted to move to live somewhere quieter as well, so... Yeah.

0:40:260:40:29

-We came up here, we found Telford's quite nice, haven't we?

-Yeah.

0:40:290:40:33

Bought a place for ourselves and one to do up,

0:40:330:40:36

and this is number two.

0:40:360:40:37

Having had the experience of doing up their first property

0:40:390:40:42

and renting it out, Nick and Helen were hungry for more,

0:40:420:40:45

and so they satisfied their appetite here at Brookside Development,

0:40:450:40:48

so-called because it was built beside a brook.

0:40:480:40:51

A six million pound regeneration scheme started here in 2014,

0:40:530:40:58

which should be good news for property prices.

0:40:580:41:00

So, what are you going to do?

0:41:030:41:05

We were going to change the kitchen and make the bathroom nice

0:41:050:41:09

and do it all, but we've recently had one of the neighbours

0:41:090:41:13

enquire about the place. Her son is interested in it.

0:41:130:41:16

-Well, that's handy, isn't it?

-It is, yeah.

-Yeah.

0:41:160:41:19

-That might keep your budget down a bit, as well.

-Well, yeah.

-Well, yeah.

0:41:190:41:22

We're not going to do as much as we were before.

0:41:220:41:24

We're going to make it look nice and liveable for him.

0:41:240:41:26

Yeah, he seems quite happy with it as it is, really,

0:41:260:41:29

-but we want to make it nice for him.

-Yeah, of course.

0:41:290:41:31

And how much are you hoping to get away with spending on your budget?

0:41:310:41:36

Well, we were going to spend up to about 5,000

0:41:370:41:41

but possibly only one or two thousand now.

0:41:410:41:44

-It's generous, 5,000, isn't it, from what I can see?

-Yeah.

0:41:450:41:48

What's that money going to be spent on?

0:41:480:41:50

Where's most of it going to go, in your opinion?

0:41:500:41:52

Well, if we were to do the whole job, the kitchen, really,

0:41:520:41:56

and the bathroom.

0:41:560:41:58

So what will you do if he does take the property?

0:41:580:42:00

Just a lick of paint really

0:42:000:42:02

and some flooring down in the kitchen

0:42:020:42:05

and the hallway and the bedroom, and that's pretty much it, actually.

0:42:050:42:10

A simple turnaround, this one. This is going to be a simple turnaround.

0:42:100:42:13

Obviously we'll get the boiler checked and the electrics

0:42:130:42:15

and everything like that but, yeah, apart from that it's just painting.

0:42:150:42:19

It's just a bit of elbow grease, isn't it?

0:42:190:42:21

-It's a bit of time, isn't it?

-Yeah.

-Yeah.

-That's all it is.

0:42:210:42:24

-If there's any tiling, Helen does that.

-Yeah.

-Is that right?

0:42:240:42:27

-Yeah.

-She loves tiling.

-I love tiling, it's great.

0:42:270:42:29

In the nicest possible way, Nick,

0:42:290:42:31

I'll take your number cos I need some tiling done myself.

0:42:310:42:33

-If that's all right with you?

-Yeah, I love it.

0:42:330:42:36

-If you don't mind travelling?

-Yeah.

0:42:360:42:38

# I spent a night on the tiles... #

0:42:380:42:41

Joking aside, I think the tiling in here could be vastly improved.

0:42:420:42:46

I'm not keen on the black window reveals,

0:42:460:42:49

which I think would be better tiled

0:42:490:42:50

and the bathroom could do with more than one row of tiles

0:42:500:42:53

around the bath.

0:42:530:42:55

If it were to be fully tiled, you'd get a shower above the bath, too.

0:42:560:42:59

How long are you hoping this work is going to take?

0:43:010:43:04

It's not a lot to do, is it?

0:43:040:43:06

-Two weeks to a month maybe.

-Four weeks, I think, yeah.

0:43:060:43:10

What are you hoping to get per calendar month?

0:43:100:43:13

He's happy to pay us about £400 a month, I think, isn't it?

0:43:130:43:17

That's right, yeah.

0:43:170:43:18

Is that the normal going rate? Have you done research round on rentals?

0:43:180:43:21

-Yeah, that's about what it is. 375 - 400 normally, yeah.

-Yeah.

0:43:210:43:25

And have you checked on any additional fees

0:43:250:43:27

as well as buying the place?

0:43:270:43:29

Well, there's a management fee, which is about 25 quid a month,

0:43:300:43:34

something like that,

0:43:340:43:36

and I think just the nominal ground rent fee per year,

0:43:360:43:40

and that's it, really.

0:43:400:43:41

-Not too big then?

-No, no.

-Should be all right.

0:43:410:43:44

-Not going to smash your budget?

-No.

-I don't think so, no.

0:43:440:43:48

-I like that. I like that. Good luck.

-Thanks very much.

0:43:480:43:51

-I wish you all the best.

-Thanks very much.

-Good luck. Cheers.

-Cheers.

0:43:510:43:54

This is only Helen and Nick's second venture

0:43:560:43:59

and it looks like they've landed on their feet.

0:43:590:44:01

They could have a tenant who is willing and waiting

0:44:010:44:04

to take on this flat in more or less the condition it's in at present,

0:44:040:44:09

which would save Helen and Nick time and money.

0:44:090:44:12

But will it be that simple? You can find out later on in the programme.

0:44:120:44:15

So, we've seen the outcome for the first of today's buyers.

0:44:180:44:21

But how did the other two get on?

0:44:210:44:23

Mm. Now, time has passed.

0:44:230:44:25

Do they reap their rewards? Let's find out.

0:44:250:44:28

Back now to the seaside, and Margate on the Kent coast,

0:44:300:44:34

where we met Michael, a property owner and landlord

0:44:340:44:37

who bought this two-bedroom mid-terrace for £89,500.

0:44:370:44:41

From the outside, this property had some cottagey charm.

0:44:430:44:47

But that charm soon wore off when you got to the back garden.

0:44:470:44:50

It was a jungle out there and it was a jumble inside.

0:44:500:44:54

For starters, I know you'll be getting a few skips

0:44:560:44:58

outside the door.

0:44:580:45:00

This here is going to give the skip industry of Margate a field day.

0:45:000:45:03

-SHE LAUGHS

-Just a bit.

0:45:030:45:05

Ever the optimist, Michael's hoping to empty and renovate the house,

0:45:050:45:09

and tidy the garden, and fix the roof and the windows

0:45:090:45:12

all in just six weeks,

0:45:120:45:14

all for a conservative figure.

0:45:140:45:16

And you really think you can get it all in on budget for around 15,000?

0:45:170:45:21

Never say never.

0:45:210:45:22

There could be things that we find, such as details about the roof,

0:45:220:45:26

that could cause problems but let's hope for the best.

0:45:260:45:29

We're back 14 weeks later and from the outside, things are looking up.

0:45:290:45:33

Inside the front door...

0:45:350:45:36

Well, it used to look like this.

0:45:360:45:39

Now, neutral shades surround the banister

0:45:390:45:42

and I do like a big mirror in the hall.

0:45:420:45:44

It looks like someone has already taken a shine to this house.

0:45:440:45:47

# Yeah, I'm ready for the good life!

0:45:470:45:51

# Hey! #

0:45:510:45:53

The reception room was, well, a bit unwelcoming.

0:45:530:45:56

Now, it's cosy with a new contemporary fireplace

0:45:570:46:00

and hard-wearing laminate floor.

0:46:000:46:02

# Ooh, yeah!

0:46:040:46:08

# I'm ready for the good life... #

0:46:080:46:10

The kitchen has undergone one of the most dramatic transformations.

0:46:130:46:17

New kitchen units, appliances

0:46:230:46:25

and a new boiler all make it a functioning kitchen now.

0:46:250:46:29

# I'm ready for the good life.

0:46:290:46:31

# Ah, ah, ah, ah, ah

0:46:310:46:32

# Ah, ah, ah, ah

0:46:320:46:34

# I'm ready for the good life... #

0:46:340:46:36

The old bathroom was very tired and tatty.

0:46:390:46:42

Now a new, clean, white suite with marble-effect floor tiles,

0:46:420:46:46

slightly more subdued than the pink predecessors,

0:46:460:46:49

make the room much fresher and cleaner.

0:46:490:46:51

Next is the front bedroom's turn.

0:46:530:46:55

All of the rooms look so much bigger now they've been cleaned out

0:46:590:47:02

and I'm glad to see the feature fireplace has been restored,

0:47:020:47:06

giving a little bit of character.

0:47:060:47:07

And a similar story in the smaller of the two bedrooms.

0:47:170:47:20

# Let me hear you say yeah

0:47:210:47:23

-# Yeah!

-Yeah!

-Yeah!

0:47:230:47:25

# Yeaaaah!

0:47:250:47:28

# Ah, ah, ah, ah, ah

0:47:280:47:29

# Ah, ah, ah, ah

0:47:290:47:31

# I'm ready for the good life! #

0:47:310:47:33

And what of the rear jungle? Sorry, I meant garden.

0:47:330:47:36

I bet Margate's skip industry hung out the bunting when it was cleared.

0:47:360:47:39

The garden was cluttered full of junk and rubbish and debris,

0:47:460:47:50

and it took us about four skips to get rid of it.

0:47:500:47:54

And then we put these nice pebbles down

0:47:540:47:56

and it now exposes a lovely stone wall and there's a great tree here,

0:47:560:48:00

so it's a nice place for there to be a barbecue. It's really lovely.

0:48:000:48:04

As well as the garden, other major costs were the roof repairs

0:48:050:48:09

and replacing the windows.

0:48:090:48:11

So, how did the £10,000 - £15,000 budget pare up?

0:48:110:48:15

In the end, it went up from 15 to 24,

0:48:150:48:18

so we did go above budget

0:48:180:48:20

but you can't make an omelette without cracking eggs

0:48:200:48:23

and ultimately you're doing this for the future.

0:48:230:48:26

Clearing the personal effects

0:48:260:48:28

and having non-standard size window frames

0:48:280:48:30

meant a delay of three weeks on top of the targeted six weeks.

0:48:300:48:34

Once we started, we essentially had to gut the place,

0:48:350:48:38

replaster it, refurbish it, new kitchen, new bathroom

0:48:380:48:41

and redecorate it,

0:48:410:48:43

and clear the junk in the garden, which was a lot.

0:48:430:48:48

What about all the clutter in the house?

0:48:480:48:50

We did make arrangements for someone who knew the previous occupants

0:48:500:48:53

to try and come and collect any personal effects

0:48:530:48:56

but the remaining stuff, we sold for a charity and raised £174,

0:48:560:49:00

which was nice because it's silly.

0:49:000:49:02

We don't want to get rid of kid's toys and so on

0:49:020:49:05

if someone can use them, so that was a nice gesture.

0:49:050:49:07

The rest of the stuff just had to be thrown away.

0:49:070:49:09

We called in two local estate agents to give us their thoughts

0:49:110:49:14

and valuations on the property.

0:49:140:49:16

Being local, they should have a good knowledge of the area,

0:49:160:49:20

the market, and the pros and cons of the property.

0:49:200:49:23

The kitchen and the bathroom, they've done a good job

0:49:230:49:26

on the refurbishment there.

0:49:260:49:27

It appeals to the market that they're obviously looking for.

0:49:270:49:31

Very clean and tidy again. Quite impressed with that, actually.

0:49:310:49:35

I think, with this type of property, there's not an awful lot

0:49:350:49:37

that you could have done differently.

0:49:370:49:39

I think the layout is very good, and I also think

0:49:390:49:42

there's plenty of space which has been made the most of.

0:49:420:49:45

Michael paid £89,500 at auction

0:49:460:49:49

and then a further £24,000 refurbishing,

0:49:490:49:52

taking his total spend to £113,500.

0:49:520:49:57

What is its market value?

0:49:570:50:00

I think on the sales market this property would achieve

0:50:000:50:02

between £120,000 and £125,000.

0:50:020:50:05

I think for this type of two-bedroom property

0:50:050:50:08

you're going to be looking at around about £125,000.

0:50:080:50:13

That could mean a potential pre-tax profit of £11,500,

0:50:130:50:17

but this was always for rental and as you can see from the furnishings,

0:50:170:50:21

Michael's already got tenants.

0:50:210:50:23

We immediately found a family who wanted to live here.

0:50:240:50:28

It was a situation where they were living in overcrowded circumstances.

0:50:280:50:32

They're quite aspirational and will contribute to the economy

0:50:320:50:35

but this is now great for them and it's really looking super.

0:50:350:50:39

What do the agents think the property should rent for?

0:50:390:50:42

Rental-wise for this property I would be expecting to achieve

0:50:420:50:45

round about £650 - £700 per calendar month.

0:50:450:50:50

On the current market I would suspect that this would achieve

0:50:500:50:53

between £600 and £625 per calendar month.

0:50:530:50:57

So, what did Michael agree with his new tenants?

0:50:570:51:00

That sounds about right.

0:51:000:51:02

I think we've agreed 650 a month, so that's excellent.

0:51:020:51:04

That's really good.

0:51:040:51:06

At £650 per calendar month, Michael is getting a yield of nearly 7%.

0:51:060:51:11

So, would he do it all again?

0:51:110:51:14

I'd want to repeat this if possible in the future.

0:51:140:51:17

It's really good to help regenerate housing stock,

0:51:170:51:19

make places habitable and then house families.

0:51:190:51:22

Back now to Telford in Shropshire where I looked at

0:51:270:51:29

this former local authority one-bed flat

0:51:290:51:32

and I was grumbling before I knew it.

0:51:320:51:35

So we're up on the second floor, so it's not ideal for elderly folk

0:51:350:51:39

or ex-professional footballers like myself that have got dodgy knees.

0:51:390:51:44

# I can't stand up

0:51:440:51:47

# For falling down... #

0:51:470:51:50

Seriously though, if you had a problem with that,

0:51:520:51:54

there was very little else to take issue with.

0:51:540:51:57

OK, it needed a good redecoration, but with gas central heating,

0:51:570:52:01

great room proportions and a guide of £33,000,

0:52:010:52:05

I thought this was a good investment.

0:52:050:52:08

And husband and wife team Nick and Helen obviously agreed with me.

0:52:080:52:12

They bought the flat for £35,000.

0:52:120:52:15

They are full-time developers

0:52:150:52:17

although this is only their second property.

0:52:170:52:20

Any work needed doing, they were going to get stuck in themselves.

0:52:200:52:24

-If there's any tiling, Helen does that.

-Yeah, I like that.

0:52:240:52:27

-Is that right?

-She loves tiling.

-Yeah, I love tiling.

-It's great.

0:52:270:52:30

In the nicest possible way, Nick,

0:52:300:52:31

-I'll take your number cos I need some tiling done myself.

-Yeah, I love it.

0:52:310:52:34

-If that's all right with you? If you don't mind travelling.

-I love it.

0:52:340:52:39

# Call on me

0:52:390:52:41

# Call on me

0:52:410:52:42

# Call on me

0:52:420:52:45

# Call on me... #

0:52:450:52:47

What can I say, viewers? Perks of the job.

0:52:470:52:50

Nick and Helen hoped to spend just £1,000 - £2,000

0:52:500:52:53

and turn it around in four weeks.

0:52:530:52:55

They already have someone interested in renting,

0:52:570:53:00

so things were looking up.

0:53:000:53:03

# I'm the same boy I used to be. #

0:53:030:53:05

Things can change quickly in property though.

0:53:070:53:10

A month has passed and we've returned.

0:53:100:53:13

Will everything still be on track?

0:53:130:53:14

# A new sensation

0:53:190:53:21

# New sensation

0:53:210:53:23

# Hey

0:53:230:53:26

# A new sensation... #

0:53:290:53:32

I didn't think this flat needed much work, but Nick and Helen

0:53:320:53:34

have managed to give this place a new lease of life.

0:53:340:53:37

So what have they done?

0:53:370:53:40

We've redecorated,

0:53:400:53:43

put flooring in three of the rooms,

0:53:430:53:48

aside from the living room.

0:53:480:53:50

We were planning to leave most of the units here

0:53:500:53:53

and just replace the doors and spruce the kitchen up a bit,

0:53:530:53:57

but we decided that once we started taking things down,

0:53:570:54:01

we wanted to make a better job of it,

0:54:010:54:03

so we changed the units completely.

0:54:030:54:06

We had the boiler checked.

0:54:060:54:08

And put in a new washing machine and cooker, as well.

0:54:080:54:12

And the kitchen looks much improved.

0:54:120:54:14

But hasn't something else changed

0:54:140:54:16

that you're not telling us about, Helen?

0:54:160:54:18

We've re-grouted some of the tiles that were here

0:54:180:54:22

and put some extra ones up.

0:54:220:54:24

Yes, Helen indulged in her favourite part of DIY - the tiling.

0:54:270:54:30

And, to be fair, I think she's done a great job.

0:54:300:54:33

The kitchen looks so much better for it.

0:54:330:54:36

She didn't just stop there though.

0:54:360:54:38

In the bathroom... Retiled, put new flooring down,

0:54:380:54:43

just cleaned everything, really, and repainted, really.

0:54:430:54:46

Oh, we put new taps on, with a shower attachment, as well.

0:54:460:54:51

# Don't stop me now

0:54:510:54:53

# I'm having such a good time

0:54:530:54:55

# I'm having a ball... #

0:54:550:54:58

There's no stopping her,

0:54:580:54:59

and thanks to the new tiles, they can fit a shower above the bath.

0:54:590:55:02

Even better.

0:55:020:55:03

Nick and Helen had a tenant interested

0:55:050:55:07

before they even began this development.

0:55:070:55:09

But has he seen the fruits of their labour?

0:55:090:55:12

Yeah, our proposed tenant came and saw the property

0:55:140:55:17

just two days ago and he loved it.

0:55:170:55:20

So he's going to be moving in with the rent we were asking for.

0:55:200:55:25

I don't blame him.

0:55:250:55:27

I think this is a great flat with landlords that clearly care

0:55:270:55:29

about their properties.

0:55:290:55:31

Originally, they were going to spend up to £5,000

0:55:320:55:35

and completely redecorate,

0:55:350:55:37

including replacing the kitchen and the bathroom.

0:55:370:55:40

When the potential tenant liked the flat as it was,

0:55:400:55:43

they revised that down to £2,000.

0:55:430:55:46

What have they ended up spending?

0:55:470:55:49

Excluding all the fees and expenses, we spent about £2,200.

0:55:500:55:56

-Most of the money, I guess, went on the kitchen.

-Yeah.

0:55:560:56:00

I don't think that's bad at all

0:56:010:56:03

but what do two local property experts think?

0:56:030:56:05

We've asked them along to get their opinions.

0:56:050:56:08

This is the second time that I've been to this particular property.

0:56:090:56:14

The work carried out to the property I would say is a very good standard

0:56:140:56:18

for this property type.

0:56:180:56:20

Nice to see a nice, new, fresh kitchen in the property

0:56:200:56:23

and the rest of the decoration is about right

0:56:230:56:26

for sale and for letting.

0:56:260:56:27

The selling point of the property is definitely the new kitchen

0:56:270:56:30

and the fact that it's very neutral living throughout.

0:56:300:56:33

For a first-time buyer and investor, it's a perfect opportunity.

0:56:330:56:36

At the moment, there is quite a lot currently for sale and rent

0:56:360:56:38

in the local area, so at least doing the work inside

0:56:380:56:41

will hopefully have the advantage over the other competition.

0:56:410:56:44

Having bought the property for £35,000

0:56:440:56:47

and spent £2,200 on development, what could the flat be worth?

0:56:470:56:52

If this was to go on the open market today for sale purposes,

0:56:520:56:56

I would expect this to achieve around about £50,000.

0:56:560:57:00

If the vendor was to put this property on the open market today,

0:57:000:57:02

I believe it would achieve in the region of £40,000 - £45,000.

0:57:020:57:06

If this was to go on the rental market today,

0:57:060:57:09

I would suggest achieving around about £400 per calendar month.

0:57:090:57:14

If the vendor was to put this property on the market for rent,

0:57:140:57:16

I believe it would achieve in the region of £375 per calendar month

0:57:160:57:19

and £395 per calendar month.

0:57:190:57:22

That's what we were expecting, as well. We actually got 390, so...

0:57:230:57:27

-Quite good.

-Yeah, what we were expecting. That's good.

0:57:270:57:31

With a total spend of £37,200,

0:57:310:57:34

that rental figure of £390 per calendar month

0:57:340:57:37

that they've agreed with their tenant will give them a yield of 12.5%.

0:57:370:57:42

Not bad for a month's work.

0:57:420:57:44

Have they both enjoyed the experience?

0:57:440:57:46

It's been really enjoyable, actually. I've enjoyed it.

0:57:480:57:51

Yeah, I think we'd buy again at auction, wouldn't we?

0:57:510:57:53

Yeah, definitely. Yeah, you get good value for money.

0:57:530:57:56

Yeah, yeah. We'd like to do it again if we can.

0:57:560:57:59

Well, we hope you've picked up some valuable information

0:58:030:58:06

on today's show.

0:58:060:58:07

And enjoyed seeing what our buyers did

0:58:070:58:09

with their new-found knowledge.

0:58:090:58:11

So, make sure you join us next time on Homes Under The Hammer.

0:58:110:58:14

-Goodbye.

-Goodbye.

-Goodbye.

0:58:140:58:15

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