0:00:02 > 0:00:04Hello. When you're buying an investment property,
0:00:04 > 0:00:06take my advice and repeat over and over again,
0:00:06 > 0:00:08"It's not personal, it's business."
0:00:08 > 0:00:11But remember, when you're buying an investment property,
0:00:11 > 0:00:14it's likely to be a home for somebody else so, by all means,
0:00:14 > 0:00:17pour your heart and soul into it, just not all your cash.
0:00:17 > 0:00:21Yes, and once you've finished repeating that to yourself,
0:00:21 > 0:00:23maybe it's time for you to hit the auctions
0:00:23 > 0:00:25and buy your next home under the hammer.
0:00:50 > 0:00:53Sticking up your hand in an auction room,
0:00:53 > 0:00:56well, it can be an exhilarating experience.
0:00:56 > 0:00:59Yes, and that's not surprising, as there is a lot of money being spent.
0:00:59 > 0:01:01So who took a deep breath and bid today?
0:01:02 > 0:01:06Can you guess what I'm planning at this two-bed in Longton near Stoke?
0:01:06 > 0:01:11Kitchen, diner. Kitchen, diner. Yes, you know what I'm thinking.
0:01:12 > 0:01:16I've got a riddle for you at a flat in Walthamstow, London.
0:01:16 > 0:01:19You can't see it but it's expensive.
0:01:19 > 0:01:21Have you guessed what the issue with the property is?
0:01:22 > 0:01:25No mystery about this two-bed property.
0:01:25 > 0:01:29A plant has made me Mr Angry in Aberdare.
0:01:29 > 0:01:32Nasty, nasty, nasty little devil this is!
0:01:34 > 0:01:36All these properties were bought at auction.
0:01:36 > 0:01:38We'll find out who got them
0:01:38 > 0:01:42- and how much they paid when these homes went under the hammer.- Sold.
0:01:46 > 0:01:50Today, I'm taking the well-trod pilgrimage to Stoke-on-Trent
0:01:50 > 0:01:52and, specifically, the town of Longton.
0:01:52 > 0:01:55But if you think you know what type of property I'm here to see...
0:01:55 > 0:01:58# Think again, you're wrong... #
0:01:59 > 0:02:03If you're a regular viewer to the show and I say, "Stoke",
0:02:03 > 0:02:05you'll be forgiven if you're thinking terraced houses.
0:02:05 > 0:02:09But that's not the case here. On this beautiful tree-lined street,
0:02:09 > 0:02:13we've got a row of semidetached houses on my right
0:02:13 > 0:02:16and on the left, you've got a sort of mishmash of houses.
0:02:16 > 0:02:20You've even got a couple of art deco houses as well.
0:02:20 > 0:02:23The property I'm here to see is a semidetached three-bedroom
0:02:23 > 0:02:27with a guide price of £90,000. Let's go see.
0:02:27 > 0:02:30And with plenty of off-road parking and a garage,
0:02:30 > 0:02:32so far, it's looking good to me.
0:02:34 > 0:02:37We're straight into the hallway.
0:02:37 > 0:02:40You've got your stairs going up to the bedrooms.
0:02:40 > 0:02:42Your front room living area,
0:02:42 > 0:02:47gas fire and a nice big bay window letting lots of light in.
0:02:47 > 0:02:51That will be the dining room. What have we got in here?
0:02:51 > 0:02:54Downstairs toilet - always a bonus.
0:02:54 > 0:02:56And the kitchen, which looks a bit dated,
0:02:56 > 0:02:58and you would need to change that.
0:02:59 > 0:03:04But kitchen, diner. Kitchen, diner.
0:03:04 > 0:03:07Yes, you know what I'm thinking.
0:03:07 > 0:03:10Get rid of this wall, give yourself a nice big kitchen-dining area,
0:03:10 > 0:03:13modernise it a little bit.
0:03:13 > 0:03:17It becomes the hub of the house, the kitchen and the diner.
0:03:17 > 0:03:20It's a great family area, it's where you spend most of your time.
0:03:20 > 0:03:23For me, get rid of that wall, open it out a bit.
0:03:23 > 0:03:28It's a no-brainer. More light, more space - job done.
0:03:31 > 0:03:33Upstairs, we have three bedrooms and a bathroom.
0:03:33 > 0:03:36It's pink and it's dated and it looks tired,
0:03:36 > 0:03:38so that would need to be changed.
0:03:38 > 0:03:41You've got a back bedroom there with fitted wardrobes
0:03:41 > 0:03:43and you've also got a box bedroom just there.
0:03:43 > 0:03:46Might be a child's bedroom or even a nursery.
0:03:46 > 0:03:49Into the master bedroom which is an OK size again.
0:03:49 > 0:03:52More fitted wardrobes, nice big bay window
0:03:52 > 0:03:54and central heating as well,
0:03:54 > 0:03:56which looks like it's been fitted quite recently,
0:03:56 > 0:03:58which is always good news.
0:03:58 > 0:04:01With that fair-sized bathroom and three bedrooms,
0:04:01 > 0:04:05this is a good family home. It just needs to be brought up to date.
0:04:05 > 0:04:09And as much as fitted wardrobes are useful sometimes,
0:04:09 > 0:04:11I'm not sure about these ones.
0:04:12 > 0:04:14You may be thinking,
0:04:14 > 0:04:17"What's the point in having fitted wardrobes with just that much depth?"
0:04:17 > 0:04:19Let me show you.
0:04:19 > 0:04:22This is actually the chimney breast
0:04:22 > 0:04:25and they have utilised the space pretty well.
0:04:25 > 0:04:28This was a big look, back in the '70s and '80s.
0:04:28 > 0:04:31We're in the 21st century now and these ain't for me.
0:04:31 > 0:04:34Get rid of these, create a bit more space, then you've got a choice -
0:04:34 > 0:04:36do you have your bed there or do you have your bed there?
0:04:36 > 0:04:38But it's a choice.
0:04:39 > 0:04:43I know, I know, there'll be some of you that love their fitted wardrobes
0:04:43 > 0:04:45and storage space can be an issue.
0:04:47 > 0:04:49They do keep clutter at bay
0:04:49 > 0:04:52but, if it were me and my decision, I'd get rid of them.
0:04:54 > 0:04:58- # How deep is your love? - How deep is your love?
0:04:58 > 0:05:00# How deep is your love?
0:05:00 > 0:05:03# I really need to learn
0:05:03 > 0:05:08# Cos we're living in a world of fools
0:05:08 > 0:05:10# Breaking us down
0:05:10 > 0:05:15# When they all should let us be
0:05:15 > 0:05:17# We belong to you... #
0:05:17 > 0:05:20At the front of the house, you've got a decent size garden
0:05:20 > 0:05:23and toward the back, you've got this garage as well.
0:05:23 > 0:05:26But what I really wanted to show you is this.
0:05:27 > 0:05:30Currently, this is the dining room window
0:05:30 > 0:05:32and that is the kitchen window.
0:05:32 > 0:05:35If you were to knock it through to create a nice dining-kitchen area,
0:05:35 > 0:05:39you've got to have some double doors here, patio doors,
0:05:39 > 0:05:41leading out into the garden. Could put some decking up.
0:05:41 > 0:05:45The choice is yours, but I think get them doors in, job done.
0:05:46 > 0:05:50I do like this house. It's in good nick and it's a good size.
0:05:50 > 0:05:54Perhaps more importantly, from a property-developing point of view,
0:05:54 > 0:05:57there's an opportunity to add value to this house.
0:05:59 > 0:06:01What does a local property expert think?
0:06:01 > 0:06:05What would he do to maximise its potential?
0:06:05 > 0:06:07If this was my property,
0:06:07 > 0:06:10I'd look to change the configuration between the kitchen
0:06:10 > 0:06:13and the dining room to create a much larger kitchen-dining area.
0:06:13 > 0:06:17And I'd just generally freshen up the property throughout,
0:06:17 > 0:06:20get it ready for resale or to let.
0:06:22 > 0:06:25But with a guide price of £90,000,
0:06:25 > 0:06:28is there much chance of adding value here?
0:06:28 > 0:06:30On completion of the work, I anticipate the value to be
0:06:30 > 0:06:34somewhere in the region of £140,000 to £145,000.
0:06:34 > 0:06:37Encouraging. But what about the rental potential?
0:06:37 > 0:06:40I would suggest the property is to be placed onto the rental market
0:06:40 > 0:06:44at somewhere in the region of £500 to £550 per calendar month.
0:06:48 > 0:06:50I think there's a lot of potential in this house.
0:06:50 > 0:06:53It's in a good area, it's solidly built
0:06:53 > 0:06:56and it wouldn't take much to turn it into a fantastic modern family home.
0:06:56 > 0:06:59Let's see who agreed when it went under the hammer.
0:07:01 > 0:07:05Lot 71. 80 to start me on this one.
0:07:05 > 0:07:0880 bid. At £80,000.
0:07:08 > 0:07:1085 bid now. At £85,000.
0:07:10 > 0:07:1590? £90,000. At 90. I'll go in ones if it helps.
0:07:15 > 0:07:19Looking for 91 now. 91. There? 92.
0:07:19 > 0:07:22New bidder. 93. 94.
0:07:22 > 0:07:2595. 96 in the aisle.
0:07:25 > 0:07:2897. 98, sir?
0:07:29 > 0:07:32Half. 97.5. No?
0:07:32 > 0:07:34It's only a half.
0:07:34 > 0:07:3798. I don't want to talk you into it.
0:07:37 > 0:07:41But 98. Another half? 98.5.
0:07:41 > 0:07:4599? Sure? If not, £98,500 once.
0:07:45 > 0:07:47£98,500 twice.
0:07:47 > 0:07:49Third and final time. £98,500.
0:07:49 > 0:07:52- HE BANGS GAVEL - You bought it, sir. Well done.
0:07:53 > 0:07:58And so, for £98,500, the three-bed house in Longton, Staffordshire,
0:07:58 > 0:08:00was bought by local man Lee.
0:08:01 > 0:08:05We met him back at the house to find out his plans.
0:08:05 > 0:08:08MUSIC: Get It Right Next Time by Gerry Rafferty
0:08:08 > 0:08:11Lee, nice to meet you, sir, and congratulations.
0:08:11 > 0:08:14- Pleased to meet you too. Thank you. - What a nice area.- Fabulous!
0:08:14 > 0:08:16It's close proximity to where we currently live,
0:08:16 > 0:08:18only about a 20-miute drive to get here.
0:08:18 > 0:08:21Close proximity to the A50 and the M6 for commuting,
0:08:21 > 0:08:23so ideal, I think, for a first development.
0:08:23 > 0:08:25Tell us a bit about yourself, Lee.
0:08:25 > 0:08:28Before getting into the property world, developing property,
0:08:28 > 0:08:32- what were you doing?- OK, I've had an extensive engineering background.
0:08:32 > 0:08:35That's where I've developed a lot of my practical skills.
0:08:35 > 0:08:38But for the final six years of my career, I've been in education.
0:08:38 > 0:08:42Property development is something my wife and I have always done
0:08:42 > 0:08:44in the 40 years that we've been married,
0:08:44 > 0:08:46so we've always purchased property
0:08:46 > 0:08:48in a run-down and neglected condition,
0:08:48 > 0:08:52we've refurbished to add value to it to build up our own equity,
0:08:52 > 0:08:56but this is the first project that I've bought specifically with a view
0:08:56 > 0:08:59to developing it on and selling it again on the open market.
0:09:01 > 0:09:03Lee's now semiretired from his teaching role,
0:09:03 > 0:09:05doing just a few hours a week,
0:09:05 > 0:09:09leaving him free to take this on alongside his wife, Jan.
0:09:09 > 0:09:11They've spent some time finding the perfect project.
0:09:11 > 0:09:13Now it's time to get stuck in.
0:09:13 > 0:09:16Tell us what you're going to do with it. Let's start downstairs.
0:09:16 > 0:09:20The whole property's going to stand a general refurbishment anyway,
0:09:20 > 0:09:23to bring it up to a more modern and current living specification.
0:09:23 > 0:09:27We'll start with a rewire, using external contractors
0:09:27 > 0:09:29for, obviously, building regulation purposes
0:09:29 > 0:09:32and the same with the gas and the plumbing as well.
0:09:32 > 0:09:34In terms of the general work on the building,
0:09:34 > 0:09:37we're going to be removing a downstairs wall
0:09:37 > 0:09:39to create an open space, dining-kitchen area
0:09:39 > 0:09:42and then we're going to put in some French windows or a patio door
0:09:42 > 0:09:44to give us garden access from the dining room.
0:09:44 > 0:09:47- It's screaming out for that, isn't it?- It certainly is.
0:09:47 > 0:09:49It just wants bringing up to a more modern specification really.
0:09:49 > 0:09:51We'll put some contemporary fireplaces in
0:09:51 > 0:09:54and then the rest will just be new kitchen, bathroom
0:09:54 > 0:09:56and a general refurbishment, with new carpets to finish.
0:09:56 > 0:09:59So, a fair bit of work, if you're going to knock out a wall too.
0:09:59 > 0:10:02- Is that down to you getting your hands dirty?- It certainly will be.
0:10:02 > 0:10:05I'll be using external contractors for all the proper requirements
0:10:05 > 0:10:07for building regulation purposes,
0:10:07 > 0:10:10but everything over and above that is work I will do myself.
0:10:10 > 0:10:13- Is your wife going to get involved and help you out?- She certainly is!
0:10:13 > 0:10:16- Ooh.- She's a dab hand when it comes to paint finish,
0:10:16 > 0:10:18so once I've done some of the major works,
0:10:18 > 0:10:22she'll be there with her paintbrush and pot of paint, no problem.
0:10:22 > 0:10:25She's also a dab hand at tile grouting as well,
0:10:25 > 0:10:28all those sort of jobs that require a bit of detail
0:10:28 > 0:10:30and bit of application to them,
0:10:30 > 0:10:32she's going to be giving me full support.
0:10:32 > 0:10:36- Little bit of quality.- Absolutely. - What is your budget, Lee?
0:10:36 > 0:10:39My budget is £10,000, which I think is a good budget for this,
0:10:39 > 0:10:42with the bathroom and the kitchen work needed.
0:10:42 > 0:10:44I think £10,00 is a large budget
0:10:44 > 0:10:46for what you want to achieve in here, isn't it?
0:10:46 > 0:10:48You've given yourself more than enough, I think.
0:10:48 > 0:10:52Yeah, you're probably right. I just didn't want to cut corners.
0:10:52 > 0:10:54I've always understood that, if you try and cut corners,
0:10:54 > 0:10:56it comes back to bite you in the long run,
0:10:56 > 0:10:59so any work that we're going to do, we're going to try
0:10:59 > 0:11:02and do it right first time and achieve the necessary standard
0:11:02 > 0:11:04that's required for the particular budget of the house.
0:11:04 > 0:11:06Yes, with an engineering background,
0:11:06 > 0:11:09getting things done right and accurately, I think is in his DNA
0:11:09 > 0:11:12and Lee's given himself a ten-week timescale
0:11:12 > 0:11:16to make sure he can get this house exactly to his own standards.
0:11:16 > 0:11:18# And if you get it wrong
0:11:18 > 0:11:20# You'll get it right next time Next time... #
0:11:20 > 0:11:23So, Lee, you've taken semiretirement.
0:11:23 > 0:11:26Did you not just want to chill out, go on holiday, do nothing?
0:11:26 > 0:11:27I'm not that sort of a person, Dion.
0:11:27 > 0:11:29I'm afraid I can't just sit with idle hands,
0:11:29 > 0:11:31I've just got to do something.
0:11:31 > 0:11:34The thought of just sitting down endlessly for hours on end,
0:11:34 > 0:11:37doing nothing, I think would drive me to despair.
0:11:37 > 0:11:40I love doing practical projects, so I think property development
0:11:40 > 0:11:44is the perfect sort of situation for me to be in at this moment in time.
0:11:44 > 0:11:48And Lee's get-up-and-go attitude hasn't been confined to this country.
0:11:48 > 0:11:51I bought a 100-acre holding out in the Australian bush
0:11:51 > 0:11:54in the early '80s and I built a house on that land,
0:11:54 > 0:11:56using natural resource material off the land -
0:11:56 > 0:11:58the stone and the timber -
0:11:58 > 0:12:01and I built a very low-budget house in the Australian bush.
0:12:01 > 0:12:03So, it's something we've always done.
0:12:03 > 0:12:08- Hold it a minute. You built a house in the Australian bush?- Correct.
0:12:08 > 0:12:11- You personally?- Did.
0:12:11 > 0:12:15Laid every stone and cut every piece of timber.
0:12:15 > 0:12:19- Really? How long did it take you to do that?- It took me about a year.
0:12:19 > 0:12:21It was quite challenging and difficult
0:12:21 > 0:12:24but the house was beautiful, using the natural stone of the land
0:12:24 > 0:12:27and the beautiful red Australian hardwood called woollybutt.
0:12:27 > 0:12:31It's almost blood-red in colour and it added a fabulous finish to it.
0:12:31 > 0:12:35- This must be a doddle for you then! - Absolutely.- Lee, good luck.
0:12:35 > 0:12:37I hope everything works out for you. I'm pretty sure it will.
0:12:37 > 0:12:41- Thank you very much indeed. Thanks for your encouragement.- Take care.
0:12:41 > 0:12:43Lee's got himself a little gem here
0:12:43 > 0:12:46and I think he could be onto a winner.
0:12:46 > 0:12:48And I'm glad to see he's thinking along the same lines as me
0:12:48 > 0:12:52with that kitchen-diner. Great minds think alike and all that.
0:12:52 > 0:12:55Find out how he gets on later on in the programme.
0:12:57 > 0:13:00MUSIC: West End Girls by East 17
0:13:00 > 0:13:03Walthamstow in London is home to a bustling market,
0:13:03 > 0:13:07a 25-minute Underground ride to Oxford Circus
0:13:07 > 0:13:09but, perhaps most importantly,
0:13:09 > 0:13:14the most famous postcode in pop - East 17.
0:13:16 > 0:13:18# In a West End town A dead-end world
0:13:18 > 0:13:20# To a dive bar in a West End town
0:13:20 > 0:13:22# East End boys and West End girls... #
0:13:22 > 0:13:28But will I love today's property lot enough to "stay another day"?
0:13:28 > 0:13:30This pretty road is made up of Warner properties,
0:13:30 > 0:13:35which were named after the Victorian builder Thomas Warner.
0:13:35 > 0:13:38Many of his houses were designed as two purpose-built flats
0:13:38 > 0:13:41and it's one of these that I'm here to see today,
0:13:41 > 0:13:43which is a ground-floor two-bedder.
0:13:43 > 0:13:46It's got the lovely traditional Warner features -
0:13:46 > 0:13:51a recessed porch and a doorway with a plaster ornament at the top there.
0:13:51 > 0:13:53But I'm not so sure about the pebbledash.
0:13:53 > 0:13:56The guide price - £180,000 plus.
0:13:56 > 0:14:00And so far, I'd definitely say it's looking "alright".
0:14:00 > 0:14:03All right, I'll stop with the East 17 jokes now!
0:14:03 > 0:14:06What the flat lacks in gorgeous exterior
0:14:06 > 0:14:10is made up for by the fact it has its own front door
0:14:10 > 0:14:14and this means it's a flat with no service charge and I like that.
0:14:15 > 0:14:17Ooh, it's very blue inside.
0:14:17 > 0:14:20You've got an extraordinarily long corridor
0:14:20 > 0:14:22with loads of rooms leading off.
0:14:22 > 0:14:26Into the front of the property, we've got the sitting room in here
0:14:26 > 0:14:30and lots of textured plaster up there. It's even on the coving.
0:14:30 > 0:14:33I think we're going to need to get rid of that.
0:14:33 > 0:14:35A little bit of damp in the corner, which is not so great.
0:14:35 > 0:14:38That needs to be inspected.
0:14:38 > 0:14:41The windows - I really think they could do with being replaced.
0:14:41 > 0:14:43I'd get somebody to look at those.
0:14:43 > 0:14:45There's not an awful lot of character,
0:14:45 > 0:14:48so how can you inject some character back into a property like this?
0:14:48 > 0:14:52Well, for starters, these wooden floorboards.
0:14:52 > 0:14:55They do run right the way through the whole property
0:14:55 > 0:14:58and I'm just wondering, because there's been so many years and years
0:14:58 > 0:15:02and layers upon layers of carpet, they could actually look quite nice,
0:15:02 > 0:15:06once sanded, and that could add a lot of character to this property,
0:15:06 > 0:15:08and value too.
0:15:08 > 0:15:11MUSIC: Whatcha Gonna Do About It by Small Faces
0:15:11 > 0:15:14Carrying on down this corridor and, though needing decoration,
0:15:14 > 0:15:17bedroom one is a good size.
0:15:17 > 0:15:20Then there's a very dated kitchen and a bathroom,
0:15:20 > 0:15:23which is not so much tired - more like exhausted!
0:15:23 > 0:15:26The corridor space seems rather wasted here.
0:15:26 > 0:15:29Now, how about that second bedroom?
0:15:31 > 0:15:34Oh, anyone got a vacuum cleaner?
0:15:34 > 0:15:38Here we are, right at the back of the property.
0:15:38 > 0:15:41One of the bonuses is that you've got a great big window
0:15:41 > 0:15:43with a lovely view out onto the garden,
0:15:43 > 0:15:45which I think is a shared garden.
0:15:45 > 0:15:48So, I think it's a bit of a waste having this as a bedroom.
0:15:48 > 0:15:50I would probably like to turn this into my lounge
0:15:50 > 0:15:53so, of an evening you could sit and look out.
0:15:53 > 0:15:56You could even think about putting some nice doors there
0:15:56 > 0:15:57so you've got instant access.
0:15:57 > 0:16:00I would also like to think about changing
0:16:00 > 0:16:03the bathroom from the kitchen, swapping them over.
0:16:03 > 0:16:05You could think about knocking this wall down
0:16:05 > 0:16:08and having the kitchen coming into the lounge,
0:16:08 > 0:16:09then out into the garden.
0:16:09 > 0:16:12But if you want to make the big changes in this flat,
0:16:12 > 0:16:15don't forget you will need to contact the freeholder.
0:16:15 > 0:16:17- # Whatcha gonna do?- Yeah, yeah
0:16:17 > 0:16:20# Whatcha gonna do about it...? #
0:16:22 > 0:16:25Even assuming you could get the freeholder's permission,
0:16:25 > 0:16:28to make these changes, you still need to do your sums
0:16:28 > 0:16:32and make sure it's worth the expense of doing all that shifting around.
0:16:32 > 0:16:35Would you, could you get your investment back?
0:16:35 > 0:16:37Still, even with this current layout,
0:16:37 > 0:16:40this pretty, neat self-contained flat,
0:16:40 > 0:16:42I just wish it had a little more character.
0:16:42 > 0:16:45And actually, there was something else I wish it didn't have.
0:16:47 > 0:16:49So, a little test for you now.
0:16:49 > 0:16:52You can't see it, but it's expensive
0:16:52 > 0:16:56and the shorter it is, the more the value of the flat decreases.
0:16:56 > 0:17:00Have you guessed what the issue with the property is?
0:17:00 > 0:17:04Yes, it's got a short lease of only 44 years.
0:17:04 > 0:17:06However, there is some good news.
0:17:06 > 0:17:08Usually, the owner would have to wait two years
0:17:08 > 0:17:10before being able to extend the length,
0:17:10 > 0:17:15but a section 42 notice has already been served to the freeholder,
0:17:15 > 0:17:18which means negotiations can start straightaway.
0:17:18 > 0:17:21That does not change the fact, though, that it will cost
0:17:21 > 0:17:24thousands of pounds to resolve, so that's worth bearing in mind.
0:17:24 > 0:17:28MUSIC: Heart Of Oak by Richard Hawley
0:17:28 > 0:17:31That big bill for an extended lease might be more of a priority
0:17:31 > 0:17:34than turning this flat back to front.
0:17:36 > 0:17:39Let's find out from a local estate agent what she thinks
0:17:39 > 0:17:43the potential might be in this flat, guided at £180,000.
0:17:43 > 0:17:46Is that short lease going to be a problem?
0:17:46 > 0:17:49Having a short lease, it will be impossible to get a mortgage.
0:17:49 > 0:17:5444 years, you will need a cash buyer, definitely.
0:17:54 > 0:17:58Extending a lease can be costly.
0:17:58 > 0:18:01It depends on the negotiations that they're having
0:18:01 > 0:18:03between the leaseholders and the freeholders.
0:18:04 > 0:18:07And how would that affect the value of the property?
0:18:09 > 0:18:14Once this property is renovated, without having the lease extended,
0:18:14 > 0:18:19it can sell at a price in between £270,000 to £290,000.
0:18:19 > 0:18:25After this flat is renovated and having the lease extended,
0:18:25 > 0:18:31it could resale at a price in between £300,000 to £320,000.
0:18:31 > 0:18:33So, there's a significant difference
0:18:33 > 0:18:36but it all depends on how much the lease costs.
0:18:36 > 0:18:40The lease might be less of an issue if this flat were to be a rental.
0:18:40 > 0:18:43What kind of figures could it achieve?
0:18:43 > 0:18:46Once renovated, this flat could rent out
0:18:46 > 0:18:50at the price in between £1,200 per calendar month
0:18:50 > 0:18:54and it can go up to £1,400 per calendar month
0:18:54 > 0:18:59if it's renovated to a high standard with all the facilities in it.
0:18:59 > 0:19:01No, in the words of East 17,
0:19:01 > 0:19:05it's not quite a "house" - or flat, in this case - "of love",
0:19:05 > 0:19:08but even with its issues, I do like this property
0:19:08 > 0:19:11and with some character injected back in,
0:19:11 > 0:19:13it could have quite a rosy future.
0:19:13 > 0:19:17Who saw the potential? Let's head to auction and find out.
0:19:17 > 0:19:21Right, lot 27. It's very, very popular.
0:19:21 > 0:19:22I don't know, 230?
0:19:22 > 0:19:25Warner flat, must be worth that around there.
0:19:25 > 0:19:28230? 230, with you.
0:19:28 > 0:19:32235? 235.
0:19:32 > 0:19:34240? Nearly.
0:19:34 > 0:19:37245. Yep. 245.
0:19:37 > 0:19:40250, standing up. 255...
0:19:40 > 0:19:42The bidding had been a little slow to get going,
0:19:42 > 0:19:45but it soon became clear this was a sought-after property.
0:19:45 > 0:19:51When we rejoin the bids, we can see they've shot up to £287,000.
0:19:51 > 0:19:54287. 289?
0:19:54 > 0:19:57If not, it's going down here at 287, sitting down.
0:19:57 > 0:20:01289 either of you? If not, 287.
0:20:01 > 0:20:03First time. Going to lose it.
0:20:03 > 0:20:08Second time... 289, back in. Nearly. 291?
0:20:10 > 0:20:13291? Very close. 293?
0:20:13 > 0:20:16291, first time.
0:20:16 > 0:20:18Second time.
0:20:18 > 0:20:21Third and last time. If you're all done...
0:20:22 > 0:20:25- HE BANGS GAVEL - Sold. 291, sitting down.
0:20:25 > 0:20:29Wow! That's more than £100,000 over the guide price!
0:20:29 > 0:20:33MUSIC: My Patch by Jim Noir
0:20:33 > 0:20:36And that bold bidder was Walthamstow's own Richard.
0:20:36 > 0:20:40He runs a property management company, renovating for clients.
0:20:40 > 0:20:44So I was keen to find out why this experienced developer
0:20:44 > 0:20:48was willing to pay so much and what he plans to do with it.
0:20:48 > 0:20:50- Richard, congratulations. - Thank you very much.
0:20:50 > 0:20:52Why did you want to buy this property at auction?
0:20:52 > 0:20:55We buy a lot of these sort of style flats, these Warner flats,
0:20:55 > 0:20:58so our portfolio consists of quite a few of these.
0:20:58 > 0:21:01So, we know them well, we know what's got to be done
0:21:01 > 0:21:03and we feel very comfortable with properties like this.
0:21:03 > 0:21:07- So, you say, "We". Who is "We"? - This one's just been bought by me,
0:21:07 > 0:21:09but I represent clients in other matters.
0:21:09 > 0:21:13I know that you paid £100,000 over the guide price
0:21:13 > 0:21:16and you know the area really well. I want to know why you did that.
0:21:16 > 0:21:19It's gone up a lot in value over the last ten years.
0:21:19 > 0:21:21These flats, at one point, were £50,000, £60,000,
0:21:21 > 0:21:23now considerably more.
0:21:23 > 0:21:26But I still think there's a lot of growth left in Walthamstow.
0:21:26 > 0:21:29In comparison with other parts of London,
0:21:29 > 0:21:31it's still cheap for this sort of square footage.
0:21:31 > 0:21:35I paid too much money, but this is a long-term investment.
0:21:35 > 0:21:38It will be rented out, probably for the next 10, 15 years,
0:21:38 > 0:21:40so regardless to what the market does,
0:21:40 > 0:21:43I still feel it would be a good long-term investment.
0:21:43 > 0:21:46So, it's basically a case of just snapping it up while it's here.
0:21:46 > 0:21:47Yes, indeed.
0:21:47 > 0:21:50# If you ever step on my patch
0:21:50 > 0:21:54# I'll bring you down I'll bring you down... #
0:21:54 > 0:21:58Well, Richard paid a lot, but he knows this area inside out,
0:21:58 > 0:22:01both as a local lad and as a property manager,
0:22:01 > 0:22:04and he's still confident there's profit to be made.
0:22:04 > 0:22:06What does he intend to do with this place
0:22:06 > 0:22:08to really maximise his income?
0:22:10 > 0:22:12It will be completely refurbished.
0:22:12 > 0:22:14We're going to have to replaster it throughout.
0:22:14 > 0:22:17I would have thought the wiring and heating will need to be updated.
0:22:17 > 0:22:20Kitchen, bathroom. We'll remove the pebbledash from the front.
0:22:20 > 0:22:23- Are you now?- Yes. - You ARE going to remove it?
0:22:23 > 0:22:26I was wondering how far anybody would go with that.
0:22:26 > 0:22:29Well, it's nearly hanging off, as it is, so it's not got much life left.
0:22:29 > 0:22:32And possibly have to sandblast the bricks after we do it.
0:22:32 > 0:22:34How expensive is that kind of job?
0:22:34 > 0:22:36It's the first time I've ever done it, so I don't know.
0:22:36 > 0:22:38I'm so glad you are going to remove the pebbledash
0:22:38 > 0:22:41because I absolutely love the big arched area at the front
0:22:41 > 0:22:43and it would look much more traditional
0:22:43 > 0:22:45with the original brickwork underneath.
0:22:45 > 0:22:47It will complement the flat upstairs as well
0:22:47 > 0:22:49cos theirs is back to the exposed bricks,
0:22:49 > 0:22:52- so we'll definitely look at that. - Hopefully, it will add some value.
0:22:52 > 0:22:54Indeed. It needs to!
0:22:54 > 0:22:57Somewhere else where I can see adding value
0:22:57 > 0:22:59is a bit of a shift around with the layout.
0:22:59 > 0:23:02I'll be interested to find out what you want to do here.
0:23:02 > 0:23:04We're going to make this one of the bedrooms
0:23:04 > 0:23:07and make the back room the lounge with the lookout onto the garden.
0:23:07 > 0:23:09Yeah, good idea.
0:23:09 > 0:23:11Even the kitchen, I was thinking, might be much more suited
0:23:11 > 0:23:13towards the back of the property.
0:23:13 > 0:23:17Yeah, we're not going to change the layout of the kitchen and bathroom
0:23:17 > 0:23:20cos we don't want to have start contacting freeholders.
0:23:20 > 0:23:24The main layout will remain the same, but the use of the rooms will change.
0:23:24 > 0:23:26I think that's fair enough.
0:23:26 > 0:23:29This flat is going to be a rental, so that's a good compromise.
0:23:29 > 0:23:32Maximum benefit for a minimum spend.
0:23:32 > 0:23:36As you'd expect from someone who's developed some 50 properties
0:23:36 > 0:23:39since he was 18, he read the legal pack,
0:23:39 > 0:23:42so that short lease didn't catch him out.
0:23:42 > 0:23:45He intends extending it in two to three years,
0:23:45 > 0:23:48once he's generated some income from the property.
0:23:48 > 0:23:52- What sort of budget are you looking at to do the work?- About £20,000.
0:23:52 > 0:23:54So you probably know £20,000 is about right
0:23:54 > 0:23:57because you have done these flats so many times.
0:23:57 > 0:23:58Yes, we're going to do a bit more to this,
0:23:58 > 0:24:00like removing the pebbledash.
0:24:00 > 0:24:03There's going to be a few extras that I haven't accounted for,
0:24:03 > 0:24:06but I'd still think around £20,000, we should be quite comfortable.
0:24:06 > 0:24:09- So, what is your timescale? - Four to six weeks.
0:24:09 > 0:24:11We've already got someone interested in renting it
0:24:11 > 0:24:13and their deadline is six weeks,
0:24:13 > 0:24:16so we're going to have to try and accommodate that.
0:24:16 > 0:24:19- Richard, four to six week timescale, £20,000 budget?- Yes.
0:24:19 > 0:24:22- Let's hope you can stick to that. - We'll try our hardest, indeed, yes.
0:24:22 > 0:24:25- Nice to meet you.- Nice to meet you too.- Good luck.- Thanks.
0:24:26 > 0:24:29So, Richard is off to an interesting start.
0:24:29 > 0:24:31He knows the area well, which is a good thing,
0:24:31 > 0:24:35but he thinks he paid too much for the flat - not so good.
0:24:35 > 0:24:39Still, he's got plenty of experience and, hopefully,
0:24:39 > 0:24:43his confidence won't be dashed by those pebbles at the front.
0:24:43 > 0:24:46Join me later on in the programme and find out how he does.
0:24:47 > 0:24:52Coming up, in Aberdare, South Wales, I'm trying to help a buyer
0:24:52 > 0:24:54break the news about the budget gently.
0:24:54 > 0:24:57- So, what's YOUR budget? - I reckon about 10, 12.
0:24:59 > 0:25:00And in Walthamstow,
0:25:00 > 0:25:03have Richard's hopes of an easy renovation been dashed?
0:25:03 > 0:25:06It was a larger job than what I first anticipated
0:25:06 > 0:25:08when we removed the pebbledashing.
0:25:11 > 0:25:14It was close to the city of Stoke-on-Trent
0:25:14 > 0:25:16and in the Staffordshire town of Longton
0:25:16 > 0:25:19we first saw this three-bed semidetached house
0:25:19 > 0:25:21with a driveway and garage.
0:25:21 > 0:25:27It was bought at auction for £98,500 by local man Lee.
0:25:27 > 0:25:30He felt he could add value to this house
0:25:30 > 0:25:33but that didn't mean he was holding back on the budget.
0:25:35 > 0:25:39For 10 grand, it's a large budget for what you want to achieve in here.
0:25:39 > 0:25:41You've given yourself more than enough, I think.
0:25:41 > 0:25:44You're probably right. I just didn't want to cut corners.
0:25:44 > 0:25:47I've always understood that, if you try and cut corners,
0:25:47 > 0:25:49it comes back to bite you in the long run,
0:25:49 > 0:25:51so any work that we're going to do, we're going to try
0:25:51 > 0:25:54and do it right first time and achieve the necessary standard
0:25:54 > 0:25:57that's required for the particular budget of the house.
0:25:57 > 0:26:01Former engineer Lee had high standards and was going all out,
0:26:01 > 0:26:04not only to refurbish this house, but to do it right.
0:26:04 > 0:26:08# Nothing but the best is good enough for me... #
0:26:10 > 0:26:13No second best for our Lee and, along with his £10,000 budget,
0:26:13 > 0:26:17he hoped, with wife Jan and tradesmen where necessary,
0:26:17 > 0:26:20to complete the work in just ten weeks.
0:26:20 > 0:26:22So, is this house now up to standard?
0:26:25 > 0:26:3015 weeks later, we've returned with Lee and his wife, Jan, to find out.
0:26:32 > 0:26:34And the outside isn't giving much away
0:26:34 > 0:26:38but it's inside where I was hoping to see some big changes.
0:26:42 > 0:26:45Yes, the front room is now sleek and modern.
0:26:46 > 0:26:48But it was that tired old kitchen and dining room
0:26:48 > 0:26:50that Lee had big plans for.
0:26:54 > 0:26:57Wow! That kitchen-diner is quite something.
0:26:59 > 0:27:03They say kitchens sell houses and I'm sold on this one.
0:27:05 > 0:27:07So how easy was it?
0:27:07 > 0:27:11It wasn't so much a technically difficult task
0:27:11 > 0:27:14but it required two of us onsite on that particular day
0:27:14 > 0:27:18and in a one-day timeframe, we did manage to remove the existing wall
0:27:18 > 0:27:22and then we had to manoeuvre 150 kilos of steel beam into position
0:27:22 > 0:27:24and that was definitely a two-man job.
0:27:24 > 0:27:29- So, it was a big friend. - A big friend doing a big favour.
0:27:29 > 0:27:31But what an enormous difference!
0:27:34 > 0:27:38Adding patio doors has brought in so much extra light.
0:27:38 > 0:27:40I'm blown away by these changes.
0:27:47 > 0:27:49And this wasn't the only place they unearthed
0:27:49 > 0:27:52the property's true potential.
0:27:52 > 0:27:55I was working upstairs and Lee called me down
0:27:55 > 0:27:58and said he'd found something hidden under the floorboards.
0:27:58 > 0:28:00I came down and he'd revealed,
0:28:00 > 0:28:03underneath the carpet, which was pretty grimy in the hallway,
0:28:03 > 0:28:06there was a lovely Minton black and white tile floor.
0:28:06 > 0:28:09So, it's been my project, really, or one of the projects,
0:28:09 > 0:28:12to get that cleaned up and I think it looks really nice.
0:28:15 > 0:28:18Wow, what a find! I love those tiles.
0:28:18 > 0:28:21Those stairs in the hallway now lead
0:28:21 > 0:28:23up to three completely refurbished bedrooms.
0:28:34 > 0:28:37And look! No cupboard love here.
0:28:37 > 0:28:40See, I said it would look better without them.
0:28:41 > 0:28:44And the bathroom, like the rest of the house,
0:28:44 > 0:28:46is finished to a really high standard.
0:28:53 > 0:28:56With the garden tidied up and a small bit of decking space,
0:28:56 > 0:28:59I think Lee has certainly delivered on his promise.
0:29:02 > 0:29:03Work that we've done by ourselves
0:29:03 > 0:29:07are the fitting and installation of the kitchen and bathrooms,
0:29:07 > 0:29:09full decor improvements throughout
0:29:09 > 0:29:12and, in terms of general refurbishment,
0:29:12 > 0:29:14the downstairs toilet,
0:29:14 > 0:29:17put a new toilet and new hand basin into that zone there.
0:29:17 > 0:29:20And while Lee may have done the bulk of the changes, wife Jan,
0:29:20 > 0:29:23who still works as a teacher, has made her mark too.
0:29:26 > 0:29:3090% of the painting I've done - where I could reach!
0:29:30 > 0:29:32And also lots of prep work -
0:29:32 > 0:29:35the sugar soap on the doors to get all the grease off
0:29:35 > 0:29:37and then the sanding and the painting,
0:29:37 > 0:29:39so I've done most of that really.
0:29:39 > 0:29:41And grouting of tiles - I'm good at that now.
0:29:42 > 0:29:47One thing that didn't quite meet their expectations was the timescale,
0:29:47 > 0:29:49which was five weeks longer than they'd hoped.
0:29:49 > 0:29:52But Lee had a foot injury which held up the project for three weeks,
0:29:52 > 0:29:56so they weren't actually far off their estimate.
0:29:58 > 0:30:03Speaking of estimates, they were only £500 over their £10,000 budget,
0:30:03 > 0:30:07with an extra spend going to the patio doors and the bathroom.
0:30:10 > 0:30:12That's not a massive overspend.
0:30:12 > 0:30:18But a £10,500 budget, along with their £98,500 purchase price
0:30:18 > 0:30:22does take their total cost to £109,000.
0:30:22 > 0:30:25Have they added value to this three-bed house?
0:30:25 > 0:30:28What do two local estate agents think?
0:30:28 > 0:30:31The standard of finish is absolutely fantastic,
0:30:31 > 0:30:33especially compared to others in the area.
0:30:33 > 0:30:36Predominantly, they are 1930s builds,
0:30:36 > 0:30:39so a property to this level of finish is particularly catching.
0:30:39 > 0:30:41The layout's fantastic.
0:30:41 > 0:30:44Bringing the dining room into a kitchen-diner
0:30:44 > 0:30:46is what all families are after at this moment in time.
0:30:46 > 0:30:48It's great for entertaining
0:30:48 > 0:30:50or for families spending time in the property.
0:30:52 > 0:30:56Lee and Jan want to sell the house on but are they missing a trick?
0:30:56 > 0:31:00Could this be a good revenue generator as a rental property?
0:31:01 > 0:31:05Rental value, we'd recommend £625 per calendar month.
0:31:05 > 0:31:08For the rental market, I would think the property will achieve
0:31:08 > 0:31:11a figure in the region of £625 per calendar month.
0:31:11 > 0:31:15In terms of those rental values, that's surprised me a little bit,
0:31:15 > 0:31:18giving a higher return than I anticipated.
0:31:19 > 0:31:25£625 per calendar month would see a rental yield of just below 7%.
0:31:25 > 0:31:30But for them, it's the resale value of their £109,000 investment
0:31:30 > 0:31:32that's most important.
0:31:33 > 0:31:38On the sales market, we'd be looking at an asking price of £135,000.
0:31:38 > 0:31:40If I was to sell the property, I would look to market it
0:31:40 > 0:31:44at a figure between £130,000 and £135,000.
0:31:44 > 0:31:47In terms of those valuations, I think they pretty much fit
0:31:47 > 0:31:50exactly where we'd pitch the property ourselves.
0:31:50 > 0:31:53- so absolutely spot-on.- We're happy with that.- We're happy with that.
0:31:53 > 0:31:58So, in the current resale market, there's a potential pre-tax profit
0:31:58 > 0:32:01of in between £21,000 to £26,000 to be had.
0:32:01 > 0:32:05So have any of the numbers altered their plans for this house?
0:32:06 > 0:32:08We've actually sold our own house,
0:32:08 > 0:32:11so we're going to need somewhere to live in the interim,
0:32:11 > 0:32:13so we're going to move in here.
0:32:13 > 0:32:16I'd happily do that for a little while.
0:32:16 > 0:32:17We'll move a bit of our own furniture in
0:32:17 > 0:32:19but it'll also take the pressure off us
0:32:19 > 0:32:22while we go house-hunting for our own next residential property.
0:32:22 > 0:32:26- But it will also be up for sale when we're in.- It will be, yeah.
0:32:26 > 0:32:31And as temporary homes go, this isn't a bad place to be, is it?
0:32:31 > 0:32:33# Oh, won't you stay
0:32:34 > 0:32:38# Just a little bit longer...? #
0:32:45 > 0:32:47Another beautiful day in the Valleys -
0:32:47 > 0:32:49the Cynon Valley, to be precise -
0:32:49 > 0:32:54and the town of Aberdare, 20 miles northwest of Cardiff.
0:32:54 > 0:32:58Aberdare held the first Eisteddfod festival in 1861
0:32:58 > 0:33:02and was a major publishing centre for the Welsh language.
0:33:02 > 0:33:06So let's hope there's some good hwyl in the Valleys today.
0:33:07 > 0:33:11So, literally, a hop, skip and a jump from Aberdare high street
0:33:11 > 0:33:13is the property I'm here to see, so great location.
0:33:13 > 0:33:16What about the guide price? Well, that's good too.
0:33:16 > 0:33:20£29,000 plus could have bought you this!
0:33:20 > 0:33:22Looks all right from the outside.
0:33:23 > 0:33:25Ooh, that's nice!
0:33:25 > 0:33:29Really good open-plan feel to the place
0:33:29 > 0:33:31the moment you walk through the door.
0:33:31 > 0:33:35Basically, one large room, sort of living area, down here.
0:33:35 > 0:33:39Stairs up to the bedrooms there. It looks OK.
0:33:39 > 0:33:43There's some signs of damp on that wall over there.
0:33:43 > 0:33:47Doesn't smell too damp but, hmm, I'll investigate that in a bit.
0:33:47 > 0:33:50But then, if you like quirky, you'll love this,
0:33:50 > 0:33:52because up these little stairs and...
0:33:54 > 0:33:56..it's the kitchen!
0:33:56 > 0:34:01It's not exactly huge and the units are a bit old
0:34:01 > 0:34:04but there's something about it. Hmm.
0:34:05 > 0:34:08You'd probably want to spend a bit of money sorting that out
0:34:08 > 0:34:12but, in terms of changing its location, I don't think so.
0:34:13 > 0:34:14I like it!
0:34:14 > 0:34:18# Where the music is for weirdos
0:34:18 > 0:34:21# We like it different We like it strange... #
0:34:21 > 0:34:26It IS slightly strange, as layouts go, but there's plenty to like here.
0:34:26 > 0:34:30This large open-plan living room feels quite bright.
0:34:30 > 0:34:34The only downside, so far, is that damp.
0:34:36 > 0:34:39So upstairs, a very workable layout.
0:34:39 > 0:34:41Two bedrooms and a bathroom.
0:34:41 > 0:34:44It's a good size bathroom, so everything you could want.
0:34:44 > 0:34:47But I'm always telling you, when you look round houses,
0:34:47 > 0:34:49that you need to use all your senses,
0:34:49 > 0:34:52- and when you come up here... - HE INHALES SHARPLY
0:34:52 > 0:34:57..there's just a really...musty smell and I wonder if...
0:34:57 > 0:35:01I mentioned there was a damp patch downstairs on the wall
0:35:01 > 0:35:05and there's another one... Ooh. ..much worse up here.
0:35:05 > 0:35:09Um, coincidentally, or maybe not surprisingly,
0:35:09 > 0:35:14on the end walls, often problems with the chimney stack,
0:35:14 > 0:35:16flashing around it or whatever,
0:35:16 > 0:35:19leading to water penetration down into this wall.
0:35:19 > 0:35:23It can only be a little dribble, just a drip, over time,
0:35:23 > 0:35:27it just saturates the wall and this is what you're left with.
0:35:27 > 0:35:31And rather than just trying to cover it up, you need to sort it out.
0:35:31 > 0:35:34# I got a leak in this old building
0:35:34 > 0:35:36# Got a leak
0:35:37 > 0:35:39# A leak in this old building... #
0:35:39 > 0:35:43So, sadly, the bathroom is not the only room with running water here.
0:35:43 > 0:35:48However, although it could do with a spruce-up, it's not a bad size.
0:35:48 > 0:35:51Unlike the rather cramped second bedroom. Hmm.
0:35:51 > 0:35:55This is a property of ups and downs. Time to look outside.
0:35:57 > 0:36:00At the back of the property, it's all rather quirky.
0:36:00 > 0:36:02You've got this little passageway
0:36:02 > 0:36:05and this massive wall which is holding back...
0:36:05 > 0:36:09Well, let's find out. ..the garden, I think.
0:36:09 > 0:36:13Um, this little landing area here and then it carries on.
0:36:14 > 0:36:16It's a good way to get your workout.
0:36:16 > 0:36:19It's not the most imaginatively designed garden, to be fair.
0:36:19 > 0:36:21It's largely concrete.
0:36:21 > 0:36:24But it is a bit of outdoor space and being high up is good.
0:36:24 > 0:36:28That's not! Grrr. You've got to know what this is.
0:36:28 > 0:36:31This nightmare plant...
0:36:32 > 0:36:37..is Japanese knotweed. Recognise the leaves.
0:36:37 > 0:36:41Let it be forever emblazoned on your memory.
0:36:41 > 0:36:45If you see a property where there is this in the garden,
0:36:45 > 0:36:47it is seriously bad.
0:36:47 > 0:36:49It is disastrous.
0:36:49 > 0:36:51Look, here's the exact example of what it does.
0:36:51 > 0:36:56Concrete, concrete, concrete, plant burrowing its way through.
0:36:56 > 0:36:58If that gets to the house,
0:36:58 > 0:37:02it starts burrowing its way in through the walls and the roof.
0:37:02 > 0:37:07Looks innocent, eh? Nasty, nasty, nasty little devil this is!
0:37:08 > 0:37:10Not good.
0:37:11 > 0:37:15- # Concrete jungle - It ain't safe on the streets
0:37:17 > 0:37:19# Concrete jungle... #
0:37:19 > 0:37:22I think my blood pressure is nearly as high
0:37:22 > 0:37:24as the Japanese knotweed canes
0:37:24 > 0:37:27which, in spring, can grow to seven feet.
0:37:27 > 0:37:29This plant can seriously reduce your chances
0:37:29 > 0:37:31of getting a loan on a property.
0:37:31 > 0:37:33Some mortgage lenders just run for the hills -
0:37:33 > 0:37:36or in THIS case, the Valleys!
0:37:36 > 0:37:40But others will lend if you've begun treating it.
0:37:40 > 0:37:43But beware, even once you've dug it up and treated its roots,
0:37:43 > 0:37:45it's expensive to get rid of,
0:37:45 > 0:37:48as it's considered contaminated waste
0:37:48 > 0:37:52and can only be disposed of at licensed sites.
0:37:52 > 0:37:55A local agent advised us that the house, once sorted out,
0:37:55 > 0:37:58could earn up to £400 per calendar month
0:37:58 > 0:38:01or £59,000 on the open market.
0:38:01 > 0:38:03But first, some things to sort out.
0:38:03 > 0:38:06Damp, most probably due to a roof problem,
0:38:06 > 0:38:10and then this back garden and its unwanted plant life.
0:38:10 > 0:38:15It's certainly a great location and a nice house,
0:38:15 > 0:38:18but a few issues to resolve.
0:38:18 > 0:38:21Let's see who took it on when it went under the hammer.
0:38:27 > 0:38:29A lot of interest in this, guided at just £29,000.
0:38:29 > 0:38:32Start me, will you, at £25,000, somebody.
0:38:32 > 0:38:3520, then, if you want. 20, I've got you there. 21, seated.
0:38:35 > 0:38:3721. 22. 23.
0:38:37 > 0:38:3924. 5...
0:38:39 > 0:38:41This property was clearly a popular lot
0:38:41 > 0:38:45and we rejoin the bidding at £37,000.
0:38:45 > 0:38:48At 37. I'll take a half, if you like.
0:38:48 > 0:38:5037, then, for the first time. Second...
0:38:50 > 0:38:5337.5. 38. 38.5, new bidder.
0:38:53 > 0:38:5639. Bad luck. 39.5.
0:38:56 > 0:39:0040. 40.5? No. At £40,000, then, seated.
0:39:00 > 0:39:02At £40,000, on my right-hand side then.
0:39:02 > 0:39:06For the first time. Second time. Third and last time. At £40,000.
0:39:06 > 0:39:09- HE BANGS GAVEL - Yours, well done. 116.
0:39:10 > 0:39:12Paying £11,000 over the guide price
0:39:12 > 0:39:14and getting the property for £40,000,
0:39:14 > 0:39:16was property developer Rebecca,
0:39:16 > 0:39:19who came along with her builder, Anthony, to meet me.
0:39:19 > 0:39:22- Rebecca, Anthony, great to meet you both.- Nice to meet you.
0:39:22 > 0:39:26- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:39:26 > 0:39:29I've done a few developments now
0:39:29 > 0:39:32but mainly buying and selling in the Cardiff area.
0:39:32 > 0:39:37Now I wanted to buy to invest and keep long-term to rent out
0:39:37 > 0:39:40- and you get a much better return up in the Valleys.- OK.
0:39:40 > 0:39:42Anthony, what's your involvement in all of this?
0:39:42 > 0:39:47- I'll be doing the main, well, all the renovation.- Great.
0:39:47 > 0:39:53Depends how far Rebecca wants to go with it.
0:39:53 > 0:39:55There's a lot of things you can see
0:39:55 > 0:39:58and needs a serious amount of work
0:39:58 > 0:40:01but, until we get stuck into it,
0:40:01 > 0:40:05we don't know what we're going to come across.
0:40:05 > 0:40:08Did you involve Anthony before you bought this place?
0:40:08 > 0:40:10Well, Anthony's been really good
0:40:10 > 0:40:12and he's saved me quite a bit of money with surveys.
0:40:12 > 0:40:15Sometimes you get a survey done, you don't get the property at auction,
0:40:15 > 0:40:18so he has been, for quite a few months,
0:40:18 > 0:40:20coming along to look at properties for me.
0:40:20 > 0:40:23I've not been getting them, they've gone over my budget,
0:40:23 > 0:40:25so this time I thought I've just got to get something.
0:40:25 > 0:40:30- So, were you with Anthony the first time he saw it?- Yes.
0:40:30 > 0:40:33And what was the general synopsis?
0:40:33 > 0:40:38- It was quite dark, wasn't it? It was.- Always better that way!
0:40:38 > 0:40:44- It was night.- Yeah.- It's got a major damp problem and a roof issue.
0:40:44 > 0:40:50Obviously, it's going to need a complete rewire, new heating system,
0:40:50 > 0:40:54new kitchen, bathroom and the floors are very springy.
0:40:54 > 0:40:58- # You know the night time, darling - Night and day
0:40:58 > 0:41:01- # Is the right time - Night and day... #
0:41:01 > 0:41:03Given that tale of woe,
0:41:03 > 0:41:05maybe it would be best never to see it in daylight
0:41:05 > 0:41:09but both of them think a timescale of one month should do it,
0:41:09 > 0:41:12with a budget, I'm almost afraid to ask...
0:41:12 > 0:41:15- Have you talked budgets yet? - ANTHONY CHUCKLES
0:41:15 > 0:41:19OK, so look away. So, what's YOUR budget?
0:41:19 > 0:41:21I reckon about £10,000, £12,000.
0:41:21 > 0:41:23Anthony, how much do you reckon it's going to cost
0:41:23 > 0:41:26- to do this place up? - You won't get much change
0:41:26 > 0:41:27- out of £20,000, I don't think...- Oh!
0:41:27 > 0:41:29But I don't know...
0:41:29 > 0:41:30THEY LAUGH
0:41:30 > 0:41:35We might have a few meetings and see what we come up with.
0:41:36 > 0:41:40And so, you can tell Anthony now what his budget actually is.
0:41:40 > 0:41:41Yeah, about 12.
0:41:43 > 0:41:46Mmm, we'll just do upstairs! No!
0:41:46 > 0:41:49# You can only have one or the other... #
0:41:49 > 0:41:53I suspect there may have to be some middle ground here, at best.
0:41:53 > 0:41:55But it's great Rebecca seems so resilient
0:41:55 > 0:41:59because she's certainly come through a tough time.
0:41:59 > 0:42:03Have you always had a passion for property and enjoyed doing it?
0:42:03 > 0:42:06I have, but before, it was more of a hobby
0:42:06 > 0:42:10and I would just do one now and again when the children were smaller.
0:42:10 > 0:42:13I moved around a lot with my husband's job,
0:42:13 > 0:42:16so I couldn't really be close to the project.
0:42:16 > 0:42:20- Right.- I concentrated more on Cardiff because I knew the area.
0:42:20 > 0:42:22But I was often living away from Cardiff.
0:42:22 > 0:42:25We moved around a lot with my husband's job.
0:42:25 > 0:42:28We were living in France and suddenly he passed away,
0:42:28 > 0:42:32so it suddenly became something that wasn't any longer a hobby.
0:42:32 > 0:42:37It had to be serious, a serious job to support me and the boys.
0:42:37 > 0:42:40So we came back to Cardiff, which was where I was born
0:42:40 > 0:42:44and where my family are, and I've just taken it from there really.
0:42:44 > 0:42:48Over the last two years, it's been a tricky time, a difficult time,
0:42:48 > 0:42:52but the boys are settled now and I'm doing this
0:42:52 > 0:42:55and it's something that I just have to do.
0:42:55 > 0:42:57I can fit the hours around the boys,
0:42:57 > 0:42:59school holidays are not really a problem
0:42:59 > 0:43:02because I'm not working for someone else,
0:43:02 > 0:43:04I'm working for myself and that's what matters.
0:43:04 > 0:43:08Rebecca's husband, Pierre, sadly died following a heart attack
0:43:08 > 0:43:13when he was just 46, leaving her and her two sons.
0:43:13 > 0:43:16You have to admire her courage and determination.
0:43:16 > 0:43:18- So how old are your boys? - They're 13 and 10.
0:43:18 > 0:43:23- Are they going to get involved?- No, they hate it.- Oh, no!- They hate it.
0:43:23 > 0:43:26- Every time I take them along to a project, they just moan.- Oh!
0:43:26 > 0:43:30- They don't like it at all, so they'll probably keep their distance.- Really?
0:43:30 > 0:43:33- Mmm-hmm.- That's a shame, isn't it? - I know, it is.
0:43:33 > 0:43:36They might change their minds as they get a bit older.
0:43:36 > 0:43:39I'm glad you're around to help out and congratulations
0:43:39 > 0:43:41- and good luck with this. - Thanks, Martin.
0:43:41 > 0:43:44- I really look forward to seeing how you get on.- Thanks.
0:43:44 > 0:43:45Thanks very much. Cheers.
0:43:47 > 0:43:52So, property, in some way, going towards helping Rebecca
0:43:52 > 0:43:54recover from some fairly tough times.
0:43:54 > 0:43:57And, hopefully, with help of Anthony, the builder,
0:43:57 > 0:43:59she'll get this place sorted.
0:43:59 > 0:44:02However, I am a little bit worried about that whole budget thing.
0:44:02 > 0:44:05How will it turn out? You can find out later in the show.
0:44:09 > 0:44:11Well, we've seen how one of the builds went,
0:44:11 > 0:44:14but what about the other two? Did they go as expected?
0:44:14 > 0:44:15Somehow, Martin, I don't think so.
0:44:15 > 0:44:17Let's find out what's been happening.
0:44:17 > 0:44:21MUSIC: It's Alright by East 17
0:44:21 > 0:44:24Back to East 17 now.
0:44:24 > 0:44:29No, not a '90s revival but Walthamstow in east London!
0:44:29 > 0:44:34And in this famous postcode, I saw a purpose-built Victorian property,
0:44:34 > 0:44:39known as a Warner flat, after their designer, guided at £180,000.
0:44:39 > 0:44:40And inside...
0:44:40 > 0:44:44# It's alright, it's alright
0:44:44 > 0:44:48# It's alright It's really alright... #
0:44:48 > 0:44:51Yes, it would be "alright" if you made a few layout changes
0:44:51 > 0:44:54to this two-bedder and brought out those character features
0:44:54 > 0:44:57and removed the crumbling pebbledash from the front,
0:44:57 > 0:45:00but something wasn't "alright" about this auction lot.
0:45:02 > 0:45:05You can't see it, but it's expensive
0:45:05 > 0:45:09and the shorter it is, the more the value of the flat decreases.
0:45:09 > 0:45:12Have you guessed what the issue with the property is?
0:45:14 > 0:45:18It was, of course, a short lease, with only 44 years left.
0:45:18 > 0:45:20But buyer Richard wasn't put off
0:45:20 > 0:45:26and paid £100,000 over the guide price at £291,000.
0:45:27 > 0:45:31# Alright, alright It's really alright... #
0:45:31 > 0:45:33And it really would be "alright"
0:45:33 > 0:45:36because this local lad planned to recoup some capital
0:45:36 > 0:45:40from renting the property out and renew the lease at a later date.
0:45:40 > 0:45:43And running a property management company, Richard had a team ready
0:45:43 > 0:45:46to make everything better than just "alright".
0:45:46 > 0:45:48# It's really alright... #
0:45:49 > 0:45:52- I'm going to remove the pebbledash from the front.- Are you now?
0:45:52 > 0:45:54It's nearly hanging off, so it's not got much life left.
0:45:54 > 0:45:56How expensive is that kind of job?
0:45:56 > 0:45:59It's the first time I've ever done it, so I don't know.
0:45:59 > 0:46:02- Hopefully, it will add some value. - Indeed. It needs to!
0:46:05 > 0:46:07And it needed to add value
0:46:07 > 0:46:11to help Richard regain that huge amount spent at auction.
0:46:11 > 0:46:13So, how's it looking 12 weeks on?
0:46:13 > 0:46:17MUSIC: Queen Of Peace by Florence + The Machine
0:46:17 > 0:46:19Well, right away, losing the pebbledash
0:46:19 > 0:46:22and restoring the original Victorian look of the house
0:46:22 > 0:46:25has made a huge difference.
0:46:25 > 0:46:27The first thing we did was remove the pebbledash
0:46:27 > 0:46:29from the front of the property.
0:46:29 > 0:46:32It was a larger job than what I'd first anticipated.
0:46:32 > 0:46:35When we removed the pebbledashing, a lot of the bricks were defaced,
0:46:35 > 0:46:37so we had to replace quite a few of the bricks
0:46:37 > 0:46:39and we spent around £1,500 to £2,000
0:46:39 > 0:46:42on the removal and replacement of the bricks.
0:46:44 > 0:46:47Inside, Richard's team have replaced the kitchen,
0:46:47 > 0:46:49adding a bright colour scheme.
0:46:50 > 0:46:54In the kitchen, we removed the existing units that were there,
0:46:54 > 0:46:56replaced the units with what you see,
0:46:56 > 0:46:59put an integrated oven and extractor hood
0:46:59 > 0:47:03and put some nice walnut worktops in, which I think gives a nice finish.
0:47:03 > 0:47:06Tiled splashback, we went for a greeny colour on the walls,
0:47:06 > 0:47:08which we thought was a bit different
0:47:08 > 0:47:11and we've gone for like a distressed concrete tile on the floor,
0:47:11 > 0:47:13so I think it works really well. I'm really happy.
0:47:13 > 0:47:15I think the colours work well,
0:47:15 > 0:47:17I'm happy with the quality of the worktops
0:47:17 > 0:47:19and I'm really pleased with the kitchen.
0:47:20 > 0:47:23The bathroom is new too and both bedrooms have been recarpeted
0:47:23 > 0:47:27and there's, thankfully, no more textured plaster.
0:47:27 > 0:47:31Richard has swapped the living room to the back of the property,
0:47:31 > 0:47:32meaning the layout is flexible
0:47:32 > 0:47:35but you do get views of the shared garden.
0:47:40 > 0:47:44Richard has also replaced all the radiators and 80% of the windows.
0:47:44 > 0:47:47He also has a tenant lined up to move in.
0:47:47 > 0:47:50He's also got a few snagging issues to sort out,
0:47:50 > 0:47:53like sanding and painting the skirting.
0:47:53 > 0:47:55He admitted he paid a bit much at auction,
0:47:55 > 0:47:59but did he spend a little bit too much over his £20,000 budget?
0:47:59 > 0:48:02We exceeded the budget that we set initially.
0:48:02 > 0:48:04A lot of that was due to the removal of the pebbledash,
0:48:04 > 0:48:07so we probably spent between £25,000 and £30,000 here.
0:48:07 > 0:48:10There's just little extra snagging bits, when we started working,
0:48:10 > 0:48:12we realised had to be done to give the correct finish.
0:48:12 > 0:48:15Richard thinks that when everything is finished,
0:48:15 > 0:48:17he'll have spent around £30,000
0:48:17 > 0:48:21and, unfortunately, he's also over his six-week timescale.
0:48:21 > 0:48:25It took me 10 to 12 weeks, which was longer than we anticipated.
0:48:25 > 0:48:28At the same time as we started this job, we did have other jobs
0:48:28 > 0:48:31which were ongoing and that took precedent over this.
0:48:31 > 0:48:34And also, I'm getting married in the next few days,
0:48:34 > 0:48:38so a lot of my time has been taken up with my upcoming wedding.
0:48:38 > 0:48:41Upcoming wedding?! Richard!
0:48:41 > 0:48:43I hope your wife-to-be hasn't been left
0:48:43 > 0:48:47to sort out all the catering and flower arrangements all on her own!
0:48:49 > 0:48:51To be fair, I preplanned a lot of this work before,
0:48:51 > 0:48:53knowing the wedding was coming.
0:48:53 > 0:48:55We'd preplanned and scheduled everything.
0:48:55 > 0:48:58But it was difficult, running a few projects at the same time,
0:48:58 > 0:49:01to fit it all in, but we managed to get there in the end.
0:49:01 > 0:49:05Well, the next project will be to the sound of wedding bells
0:49:05 > 0:49:08but will Richard ring a profit here?
0:49:08 > 0:49:10What did two local estate agents think,
0:49:10 > 0:49:13starting with the agent who saw it first time?
0:49:14 > 0:49:16Having a look around at the flat,
0:49:16 > 0:49:20I think it's been refurbished to a very nice standard.
0:49:20 > 0:49:24The layout is pretty much the same as it was at the beginning.
0:49:24 > 0:49:27It's nice but I would have changed it a little bit.
0:49:27 > 0:49:31I would move the kitchen at the back where is the exit to the garden.
0:49:31 > 0:49:33I think the colour scheme is something different to normal.
0:49:33 > 0:49:36Normally, we're looking at magnolia type of properties
0:49:36 > 0:49:39and the decor is very modern and just the sort of thing
0:49:39 > 0:49:43first-time buyers or people looking to rent would be interested in.
0:49:43 > 0:49:46There's a massive demand for this type of property.
0:49:46 > 0:49:49It's called a Warner and in this area, they're very sought-after.
0:49:49 > 0:49:53Richard's total spend is £321,000
0:49:53 > 0:49:56but extending that lease could cost up to £50,000.
0:49:56 > 0:49:59The agents believe, with an extended lease,
0:49:59 > 0:50:04the property could sell for a maximum of £385,000
0:50:04 > 0:50:07and that would give Richard a potential pre-tax profit
0:50:07 > 0:50:13of £14,000 against a potential spend of £371,000.
0:50:15 > 0:50:17I'm happy with those resale values.
0:50:17 > 0:50:21The aim is not to sell this, so really, they were irrelevant,
0:50:21 > 0:50:24and I know the price I paid was the full price at the auction.
0:50:24 > 0:50:27But it's good to see that, even on that fuller figure,
0:50:27 > 0:50:30there's still a little bit of profit to be made there.
0:50:30 > 0:50:34Richard is planning to hold on to the flat for the long-term
0:50:34 > 0:50:38and rent it out. So what could it fetch on the rental market?
0:50:38 > 0:50:40This flat would rent for approximately £1,400
0:50:40 > 0:50:41per calendar month.
0:50:41 > 0:50:47This flat could let at a price between £1,200 per calendar month
0:50:47 > 0:50:50and if it's finished to a high standard, like this one,
0:50:50 > 0:50:54can go up to £1,400 per calendar month.
0:50:54 > 0:50:56Those rental valuations are fine.
0:50:56 > 0:50:58We've got it let at £1,350,
0:50:58 > 0:51:01so it's in between the prices that those agents have given.
0:51:01 > 0:51:04We probably could have got more but because it's a recommendation,
0:51:04 > 0:51:07we feel more comfortable letting it to that person
0:51:07 > 0:51:08for a slightly lesser price.
0:51:08 > 0:51:12Renovation complete, tenant secured.
0:51:12 > 0:51:14Now he just needs to press his wedding suit.
0:51:14 > 0:51:18Richard, from all of us on the team at Homes Under The Hammer,
0:51:18 > 0:51:20congratulations!
0:51:22 > 0:51:24So now we've got the flat finished,
0:51:24 > 0:51:27I'm now onto my wedding which is scheduled for three days' time,
0:51:27 > 0:51:29so I'm looking forward to having a pint, putting my feet up
0:51:29 > 0:51:31and relaxing at my wedding.
0:51:33 > 0:51:36MUSIC: Big In Japan by Alphaville
0:51:36 > 0:51:40Earlier in the show, I was in Aberdare in South Wales
0:51:40 > 0:51:44to see a two-bed mid-terrace, guided at £29,000.
0:51:44 > 0:51:49It had a strange layout, a tiny second bedroom and a damp issue.
0:51:49 > 0:51:54However, it was what was lurking out back that had me worked up.
0:51:54 > 0:51:57Grrr! You've got to know what this is.
0:51:57 > 0:52:03This nightmare plant is Japanese knotweed. It is disastrous.
0:52:03 > 0:52:06Look, here's the exact example of what it does.
0:52:06 > 0:52:10Concrete, concrete, concrete, plant burrowing its way though.
0:52:10 > 0:52:13# It's easy when you're big in Japan
0:52:13 > 0:52:16# Oh, you're big in Japan tonight
0:52:16 > 0:52:18# Big in Japan... #
0:52:18 > 0:52:22This was a big job - in Japan or not. See what I did there?
0:52:22 > 0:52:27But damp and problematic plants didn't dissuade developer Rebecca.
0:52:27 > 0:52:29She came along with her builder, Anthony,
0:52:29 > 0:52:31to tell us about the plan for this property
0:52:31 > 0:52:34and it seemed that when it came to the renovation budget,
0:52:34 > 0:52:37things hadn't quite been settled.
0:52:38 > 0:52:41So, have you talked budgets yet?
0:52:41 > 0:52:42ANTHONY CHUCKLES
0:52:42 > 0:52:46OK, look away. So, what's YOUR budget?
0:52:46 > 0:52:48I reckon about £10,000, £12,000.
0:52:48 > 0:52:51Anthony, how much do you reckon it's going to cost to do this place up?
0:52:51 > 0:52:54You won't get much change out of £20,000, I don't think, but...
0:52:54 > 0:52:57- THEY LAUGH - Well, whatever budget it was,
0:52:57 > 0:53:00they thought a timescale of one month should be enough.
0:53:00 > 0:53:03But we're now back 14 months on.
0:53:03 > 0:53:05Anthony had done some of the work
0:53:05 > 0:53:11and then a new building team took over and now tenants have moved in.
0:53:11 > 0:53:14Given how good it's looking, it's been worth the wait.
0:53:14 > 0:53:18# Baby, we can do it Take the time, do it right
0:53:18 > 0:53:20# We can do it, baby
0:53:20 > 0:53:22# Do it tonight
0:53:22 > 0:53:26# Baby, we can do it Take the time, do it right
0:53:26 > 0:53:28# We can do it, baby
0:53:28 > 0:53:30# Do it tonight
0:53:30 > 0:53:33# Take your time...#
0:53:33 > 0:53:35While Rebecca and the team have done a great job,
0:53:35 > 0:53:39it certainly took a lot longer than expected.
0:53:39 > 0:53:42The biggest challenge, really, was the timescale.
0:53:42 > 0:53:44The original timescale was a month
0:53:44 > 0:53:48and the actual time the work took was about six weeks.
0:53:48 > 0:53:50The problem was that we had big gaps in between
0:53:50 > 0:53:52when no work was being done at all.
0:53:52 > 0:53:55So, definitely, the biggest challenge
0:53:55 > 0:54:00was trying to get the building complete and rented out.
0:54:00 > 0:54:03And sometimes, that goes out of my control.
0:54:03 > 0:54:06# Take your time... #
0:54:06 > 0:54:10Rebecca dismantled a kitchen but the damp could only be fixed
0:54:10 > 0:54:13by fixing the roof and that was hampered by bad weather.
0:54:13 > 0:54:17The roof came off completely and that took a bit of time
0:54:17 > 0:54:21and, of course, that's an expensive job but well worth doing
0:54:21 > 0:54:24because I'm going to be hanging onto the property long-term.
0:54:24 > 0:54:28The damp was terrible. The roof was in a worse state than I'd thought.
0:54:28 > 0:54:30One morning, the bedroom was completely saturated
0:54:30 > 0:54:35and it took a long time to dry out, even once the roof was repaired.
0:54:35 > 0:54:37We had heaters on
0:54:37 > 0:54:40and we had dehumidifiers going almost constantly.
0:54:40 > 0:54:43It's an old house. Stone takes a long time to dry.
0:54:43 > 0:54:46Thankfully, the house did eventually dry out
0:54:46 > 0:54:49and that allowed the team to get stuck in.
0:54:49 > 0:54:53New kitchen, tiling, new bathroom, tiling,
0:54:53 > 0:54:56new flooring throughout, new boiler.
0:54:56 > 0:55:00We've done basically everything you could possibly do in a house, yeah.
0:55:00 > 0:55:04And that includes getting rid of the Japanese knotweed,
0:55:04 > 0:55:07which was professionally removed by the council.
0:55:07 > 0:55:09And with that knotty issue resolved,
0:55:09 > 0:55:12how's the other knotty issue, the budget?
0:55:12 > 0:55:17Did Rebecca stay anywhere near her £10,000 to £12,000 figure?
0:55:17 > 0:55:20I went over my budget, as I usually do. It's just the way it goes.
0:55:20 > 0:55:23The roof cost more than I thought it was going to.
0:55:23 > 0:55:27- It was entirely replaced. - Rebecca spent a total of £17,000.
0:55:27 > 0:55:30But is she pleased with the end result?
0:55:32 > 0:55:34I'm really happy with the finished product.
0:55:34 > 0:55:37I know it cost more than I'd anticipated,
0:55:37 > 0:55:41but I am really happy with the work that's been done.
0:55:41 > 0:55:45The guys did a fabulous job. It wasn't the easiest job to do.
0:55:45 > 0:55:50Um...the damp was a real issue, so clearing that up was great.
0:55:50 > 0:55:53But it's just a nice little house.
0:55:53 > 0:55:55And along to this nice little house,
0:55:55 > 0:55:58we've invited two local estate agents.
0:55:58 > 0:56:01What are their thoughts on Rebecca's renovation?
0:56:01 > 0:56:05Very nicely presented and decorated to a nice modern standard
0:56:05 > 0:56:07and in a good location.
0:56:07 > 0:56:09Standard of finish is very good.
0:56:09 > 0:56:12The vendor's obviously put lots of time and money into the property.
0:56:12 > 0:56:15The main selling points are there are two double bedrooms,
0:56:15 > 0:56:18one with fitted wardrobes and it's got a nice bathroom
0:56:18 > 0:56:20and a nice flow to the lounge, dining room,
0:56:20 > 0:56:22straight through into the kitchen.
0:56:22 > 0:56:26Rebecca intends hanging on to this property for the time being.
0:56:26 > 0:56:30If she were to sell it, would her £57,000 investment mean profit?
0:56:31 > 0:56:34The sale value to this property
0:56:34 > 0:56:38would be in between £70,000 and £75,000.
0:56:38 > 0:56:41In the sales market, I'd expect this property
0:56:41 > 0:56:43to achieve between £75,000 and £80,000.
0:56:43 > 0:56:48That top figure could mean a potential profit of £23,000,
0:56:48 > 0:56:51minus the usual taxes and expenses.
0:56:51 > 0:56:54However, Rebecca is really focussed on renting this for now,
0:56:54 > 0:56:57so is she achieving the market rate for rental?
0:56:58 > 0:57:02On the rental market, I'd hope this property to achieve
0:57:02 > 0:57:06between £375 and £400 per calendar month.
0:57:06 > 0:57:08The rental value on this property
0:57:08 > 0:57:11would be in between £375 per calendar month
0:57:11 > 0:57:13and £400 per calendar month.
0:57:13 > 0:57:17That top figure could mean a yield of 8.5%.
0:57:17 > 0:57:21Could her mind be changed by the potential £23,000 profit?
0:57:23 > 0:57:25I'm absolutely astounded, actually.
0:57:25 > 0:57:28I honestly didn't think we put that much value on the property,
0:57:28 > 0:57:32so I'm amazed. I am amazed, although it's not...
0:57:32 > 0:57:35That wasn't the idea. The idea is to keep hold of the property.
0:57:35 > 0:57:37It's been done to a really good standard.
0:57:37 > 0:57:39The builders have done a fab job
0:57:39 > 0:57:43and it's a good one to keep, to rent out for the foreseeable future.
0:57:43 > 0:57:47And the foreseeable future is about doing more property
0:57:47 > 0:57:49to support her sons, Remy and Louis.
0:57:50 > 0:57:54Does that mean she'll have two pairs of helping hands on future projects?
0:57:57 > 0:57:59My boys are not interested in this.
0:57:59 > 0:58:01Any time we go anywhere near a DIY store,
0:58:01 > 0:58:03it's big groans all round and they stay in the car.
0:58:03 > 0:58:06They won't even come in with me.
0:58:08 > 0:58:12So, more inspirational people and properties in today's show.
0:58:12 > 0:58:14Yes, and plenty more properties for you to think about.
0:58:14 > 0:58:17Yeah, come and see more next time on Homes Under The Hammer.
0:58:17 > 0:58:19- Goodbye.- Goodbye.- Goodbye.