0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06You can get a wide range of choice and some pretty decent prices
0:00:06 > 0:00:08when you buy at auction.
0:00:08 > 0:00:11Yes, and more and more people are finding out that every day.
0:00:11 > 0:00:14Do you think you might be one of them and buy your home under the hammer?
0:00:40 > 0:00:43As every property developer knows, each project has a life of its own
0:00:43 > 0:00:47and you can never predict how it's going to go.
0:00:47 > 0:00:51But the best thing to do is to take whatever happens in your stride.
0:00:51 > 0:00:54Now, is that advice that today's buyers will need?
0:00:54 > 0:00:55Let's see what they bought.
0:00:57 > 0:01:02In Tunbridge Wells, Kent, there is a property that's safe as houses.
0:01:02 > 0:01:05That is so heavy. An original safe.
0:01:07 > 0:01:11While in Carlisle, this end terrace isn't safe from the elements.
0:01:11 > 0:01:15Water, rainwater is a little devil. It just gets in wherever it can.
0:01:17 > 0:01:20And in Stoke, safety is also on my mind
0:01:20 > 0:01:22in this three-bed terraced property.
0:01:22 > 0:01:26I'm not sure what's going on just there. That concerns me.
0:01:26 > 0:01:29All these properties were bought at auction.
0:01:29 > 0:01:32We will find out who got them and how much they paid for them
0:01:32 > 0:01:35when these homes went under the hammer.
0:01:35 > 0:01:36Well done, sir.
0:01:40 > 0:01:44The spa resort of Tunbridge Wells in Kent has been a host
0:01:44 > 0:01:47to the great and good for over 400 years.
0:01:47 > 0:01:51At the most southern end of the town is the area known as the Pantiles
0:01:51 > 0:01:55after Queen Anne donated money for ceramic paving tiles.
0:01:55 > 0:01:58Not only does this area have a fabulous colonnade,
0:01:58 > 0:02:02it also has lots of chic specialist stores.
0:02:02 > 0:02:07The area around the Pantiles where the town started with its beautiful
0:02:07 > 0:02:11Georgian colonnades still have the best of the town's properties.
0:02:11 > 0:02:14But this little house is on the other side of the tracks,
0:02:14 > 0:02:18which is still quite well-heeled in terms of Tunbridge Wells.
0:02:18 > 0:02:22Now, it had a guide price of £190,000 to £200,000.
0:02:22 > 0:02:25And look, there are three storeys here.
0:02:25 > 0:02:27Here it is and it looks appealing.
0:02:30 > 0:02:35So in a previous life I would guess this was a commercial building.
0:02:35 > 0:02:39A little reception area. Hello, good morning.
0:02:39 > 0:02:43Not quite what I was expecting in here at all.
0:02:43 > 0:02:46And look, there is still an old...
0:02:46 > 0:02:49That is so heavy. An original safe.
0:02:49 > 0:02:53That would be a big job to get something like that out.
0:02:53 > 0:02:57Interestingly, this building has gone to auction
0:02:57 > 0:03:01and it's already got permission to convert into three separate flats,
0:03:01 > 0:03:05which is great news because you can see how that would configure.
0:03:05 > 0:03:07In through the door here.
0:03:07 > 0:03:11This door, I'm guessing, would be the entrance to flat number two
0:03:11 > 0:03:13which would be upstairs.
0:03:13 > 0:03:16At the back you've got the same kind of space here
0:03:16 > 0:03:18as at the front of the building.
0:03:18 > 0:03:22A lovely old original sash window. That's absolutely beautiful
0:03:22 > 0:03:25but I think it's out with the old and in with the new.
0:03:25 > 0:03:26Plastic, unfortunately.
0:03:26 > 0:03:29And you've got to think how you would configure the space
0:03:29 > 0:03:31because you need a kitchen and a bathroom.
0:03:31 > 0:03:35You've got a little toilet out the back there.
0:03:35 > 0:03:37So where are the other entrances?
0:03:37 > 0:03:40I am just wondering if the flat downstairs
0:03:40 > 0:03:41is a similar layout to this one.
0:03:41 > 0:03:43Go investigate.
0:03:44 > 0:03:47So downstairs in the basement flat,
0:03:47 > 0:03:50it certainly is a little bit dark and dingy here.
0:03:50 > 0:03:53I've never been a fan of basements because they do tend to smell of damp
0:03:53 > 0:03:56and it is just a little more oppressive.
0:03:56 > 0:04:00Now, interestingly, on the plans which I have to how this
0:04:00 > 0:04:04whole building is going to change, as I said a one-bedroom flat,
0:04:04 > 0:04:07they've got the entrance to this basement flat here,
0:04:07 > 0:04:10which means you're going to have to go through a whole load
0:04:10 > 0:04:14of excavation to create a big doorway here.
0:04:14 > 0:04:18I just find it a rather strange place to have the entrance
0:04:18 > 0:04:19when, if you come through here,
0:04:19 > 0:04:21you've got your second reception area,
0:04:21 > 0:04:24very much mirrored the same as upstairs with the loo,
0:04:24 > 0:04:29you've got a perfectly nice doorway here
0:04:29 > 0:04:31which leads straight out to a little courtyard.
0:04:31 > 0:04:34So I'm wondering whether it might be worth thinking
0:04:34 > 0:04:36about changing that around.
0:04:36 > 0:04:39It would mean you'd have to go back to the planners
0:04:39 > 0:04:42but I think it might be a change worth doing.
0:04:42 > 0:04:45Upstairs on the top floor, things should be more straightforward.
0:04:45 > 0:04:48There is a similar two-room layout to the ground floor
0:04:48 > 0:04:51with one room at the front and one at the back.
0:04:51 > 0:04:54However, it doesn't have the extension where the toilet was.
0:04:54 > 0:04:57And if you take a look outside you can see the neighbouring
0:04:57 > 0:05:00properties are using a back door as an entrance to their basement
0:05:00 > 0:05:03and have taken the toilet extension right up to the top floor.
0:05:03 > 0:05:06So I'd have a rethink about some of these plans.
0:05:06 > 0:05:08Just because they are approved,
0:05:08 > 0:05:10it doesn't mean you have to stay with them
0:05:10 > 0:05:13and you can't have another go at them and get it exactly right.
0:05:15 > 0:05:17# No use complaining
0:05:17 > 0:05:19# Don't you worry, don't you whine
0:05:19 > 0:05:22# Cos if you get it wrong you'll get it right next time. #
0:05:24 > 0:05:27We asked along a local estate agent to get his advice on how
0:05:27 > 0:05:30he would lay out the entrances to the property.
0:05:30 > 0:05:32This one has big advantages because you can get to the
0:05:32 > 0:05:35side of the building, which you can't next door.
0:05:35 > 0:05:38Here, you've got access at the side so you can actually
0:05:38 > 0:05:41have access to the ground floor flat from the front door,
0:05:41 > 0:05:45the upper flat from the side door and you can go around the back
0:05:45 > 0:05:48and have access to the bottom flat from the outside as well.
0:05:48 > 0:05:51So all three flats can have their own external front doors,
0:05:51 > 0:05:53which I think will be a big feature.
0:05:53 > 0:05:54I couldn't agree more.
0:05:54 > 0:05:59Are there any negatives about converting this lot into three flats?
0:05:59 > 0:06:02I think there's quite a lot of work to do here.
0:06:02 > 0:06:04It is a house, it's not flats already,
0:06:04 > 0:06:08so there is a lot of sound insulation and fire regulation work
0:06:08 > 0:06:11to be dealt with, which obviously considerably increases the cost.
0:06:11 > 0:06:16We are probably looking at anything up to £80,000 to £100,000 overall.
0:06:16 > 0:06:18# But it's going to take money
0:06:20 > 0:06:22# A whole lot of spending money
0:06:23 > 0:06:26# It's going to take plenty of money
0:06:26 > 0:06:28# To do it right, child... #
0:06:30 > 0:06:34Yes, the cost of this renovation is not to be underestimated.
0:06:34 > 0:06:40With a guide of 190 to 200,000, and development costs of up to £100,000,
0:06:40 > 0:06:43would it be worth it in the long run to spend all that money?
0:06:43 > 0:06:46What sales value could we expect for each flat?
0:06:46 > 0:06:49Once completed, I think we are probably looking
0:06:49 > 0:06:55somewhere in the region of 139, 145, maybe even 150,000.
0:06:56 > 0:07:00So this really could be an exciting project for somebody
0:07:00 > 0:07:04to just come in here and split it up into three self-contained flats.
0:07:04 > 0:07:09Or maybe they might fancy leaving it as a little townhouse.
0:07:09 > 0:07:13Let's see who the successful bidder was when the hammer went down.
0:07:14 > 0:07:19Lot 108. Start me where you will. Start me at 190. 190?
0:07:19 > 0:07:23Start me at 180 then. 180 right at the back.
0:07:23 > 0:07:28Standing at the back. 180. I'm on the way. 182 on the side. 185.
0:07:28 > 0:07:33It's against you. 185, it's with you. 188. 188 and 190.
0:07:33 > 0:07:37After what had been a slow start, the bidding soon picked up.
0:07:37 > 0:07:41We rejoin at 232,000.
0:07:41 > 0:07:44232,000, I've got. 233, if you like?
0:07:44 > 0:07:47For £232,000. 233, I've got.
0:07:47 > 0:07:50234. 234.
0:07:50 > 0:07:52And five. Another shake of the head.
0:07:52 > 0:07:54At £234,000 on my left-hand side I have then.
0:07:54 > 0:07:56It's in the room to sell it for the first time,
0:07:56 > 0:07:58unless somebody else is coming in.
0:07:58 > 0:08:01At £234,000 I'm bid for the second.
0:08:01 > 0:08:03Third and final time.
0:08:03 > 0:08:06If you are sure you are all done at £234,000, it's going to be sold.
0:08:06 > 0:08:10Well done, sir. It's yours at 234.
0:08:10 > 0:08:14That successful bid of 234,000 came from Andy,
0:08:15 > 0:08:19a former fire protection consultant who was at the auction
0:08:19 > 0:08:21with his brother-in-law, Steve.
0:08:21 > 0:08:23You may recognise Andy and that's because he did
0:08:23 > 0:08:27one of my favourite properties we've ever had on the show.
0:08:27 > 0:08:29A converted water tower in Maidstone.
0:08:29 > 0:08:33I'm really excited to find out what his plans are this time round.
0:08:33 > 0:08:35Lovely to meet you again.
0:08:35 > 0:08:40I know you built the amazing water tower that we absolutely love on Homes Under The Hammer.
0:08:40 > 0:08:43And Steve, congratulations because you are now working with Andy
0:08:43 > 0:08:46on this project and you even worked on the water tower, didn't you?
0:08:46 > 0:08:50Yes, I did. I helped to tender all the quotes and stuff so yes,
0:08:50 > 0:08:52I was quite involved with the water tower.
0:08:52 > 0:08:53So let's talk about this one in hand.
0:08:53 > 0:08:56Obviously it comes with planning permission for three flats.
0:08:56 > 0:09:02You're a busy man. You're obviously knocking as many properties out as physically possible, is that right?
0:09:02 > 0:09:04Yes. I've got a few on the go at the moment.
0:09:04 > 0:09:06Steve helps me run all of them.
0:09:06 > 0:09:10Steve gets all the bad jobs, I'm afraid. I get the good jobs.
0:09:10 > 0:09:13So how does it work out for you both? Steve, tell me what you have to do.
0:09:13 > 0:09:15All the dirty work, really.
0:09:15 > 0:09:19All the stuff that Andy doesn't want to do, I get to take it on.
0:09:19 > 0:09:21And you do all the nice stuff? Like what?
0:09:21 > 0:09:24I do most of the planning and financial side of things
0:09:24 > 0:09:27so I've got a lot of the architectural connections and that.
0:09:27 > 0:09:30We sort of look at stuff and if necessary, like this place,
0:09:30 > 0:09:34a couple of tweaks to be done on the planning and sort of do those sort of things.
0:09:34 > 0:09:37It's great that Andy has someone to depend on to do the dirty work.
0:09:37 > 0:09:40Although Andy is sticking to the approved plans
0:09:40 > 0:09:43for three one-bedroom flats, he is going to re-jig them.
0:09:43 > 0:09:48And given his experience, I'm sure he's spotted the obvious.
0:09:48 > 0:09:53The access to the front of the property to the lower ground flat is very tight under the planning
0:09:53 > 0:09:55and when you look out the window behind us,
0:09:55 > 0:10:01we've actually got access straight into the lower ground floor identical to next-door.
0:10:01 > 0:10:04Yep, he spotted it. Of course he did.
0:10:04 > 0:10:06The current plans would mean excavating the front,
0:10:06 > 0:10:10which is close to the road, and getting a concrete staircase in.
0:10:10 > 0:10:13It does all seem a bit unnecessary.
0:10:13 > 0:10:15But will the planner agree?
0:10:15 > 0:10:18Something he might have an easier time with is the plans to mirror
0:10:18 > 0:10:21the neighbouring property with an extension.
0:10:21 > 0:10:24Quite interesting that you've bought this with planning, with plans.
0:10:24 > 0:10:26But with your experience,
0:10:26 > 0:10:29you've come along and you can see a better way to lay these flats out.
0:10:29 > 0:10:33Yeah. I suppose we come in knowing the costs.
0:10:33 > 0:10:35One of the plans currently drawn,
0:10:35 > 0:10:38it shows the removal of half a chimney stack,
0:10:38 > 0:10:40which we certainly won't be doing from a cost perspective
0:10:40 > 0:10:44because that's really expensive for really, in my opinion, not much of a net gain.
0:10:44 > 0:10:46I'm going to stop you there because the half a chimney stack
0:10:46 > 0:10:49is in the front room as you walk through the door.
0:10:49 > 0:10:52It's quite an attractive feature. A lot of people would like that
0:10:52 > 0:10:54but there's a little safe just underneath it.
0:10:54 > 0:10:58You're going to get that safe away and chop away at the chimney stack.
0:10:58 > 0:11:01- It's not worth it.- No, no. I might leave that safe in.- Really?
0:11:01 > 0:11:03Yeah, might be for a bit of a laugh.
0:11:03 > 0:11:05So, when we come back the safe could still be in the wall?
0:11:05 > 0:11:09- I don't know, we'll see. - With something special in it locked up so whoever buys this,
0:11:09 > 0:11:11there could be a prize in the middle. Ooh!
0:11:11 > 0:11:13The set of keys I've got, one of them's meant to fit
0:11:13 > 0:11:16but we'll have to see if we can get it to work.
0:11:16 > 0:11:18I would love to see that. That would be fantastic.
0:11:18 > 0:11:23'So, perhaps the safe is...safe?'
0:11:23 > 0:11:27# Love will be right here
0:11:27 > 0:11:29# Be right here... #
0:11:29 > 0:11:32Converting a block like this isn't just about new kitchens
0:11:32 > 0:11:35and bathrooms, or indeed the obvious planning issues.
0:11:35 > 0:11:37There are other hidden building regs to think about.
0:11:37 > 0:11:41One of the biggest things we've got to do is acoustic stuff, isn't it?
0:11:41 > 0:11:43We've got to be party compliant
0:11:43 > 0:11:47because it's a conversion into flats from offices.
0:11:47 > 0:11:52You've got a timber deck floor down with somewhere with quite large ventilation holes though it.
0:11:52 > 0:11:55So, you know, we'll have to sort that out because you don't want
0:11:55 > 0:11:58to be sitting in your flat listening to people above.
0:11:58 > 0:12:01'Well, I guess it depends if your neighbour has a good singing voice or not.
0:12:01 > 0:12:03'Seriously, this is a big project
0:12:03 > 0:12:06'and it might have all sorts of hidden horrors.
0:12:06 > 0:12:08'So, what's the budget?'
0:12:08 > 0:12:11It's between 90-100,000, we've put the budget in.
0:12:11 > 0:12:14But we've obviously added contingencies on just in case
0:12:14 > 0:12:17there is any unforeseen headaches.
0:12:17 > 0:12:20How long is it going to take to complete the three flats?
0:12:20 > 0:12:21And then we'll see if Andy agrees.
0:12:21 > 0:12:24I'm hoping to be done within five months.
0:12:24 > 0:12:27OK, so you think you can turn around this building,
0:12:27 > 0:12:29three separate dwellings in five months?
0:12:29 > 0:12:30Yeah, fingers crossed.
0:12:30 > 0:12:34You must be pretty pleased with that because that's a quick turn around.
0:12:34 > 0:12:38- I had six months in my mind, so five months is great.- You're on a bonus.
0:12:38 > 0:12:43Well, planning dependant. That'll be the ideal scenario.
0:12:43 > 0:12:46Guys, good luck with this project. Andy, it's fantastic to see you.
0:12:46 > 0:12:48I know you're going to do a great job here.
0:12:48 > 0:12:50Steve, if you can do this in five months,
0:12:50 > 0:12:53- you'll certainly be getting a medal from me.- Thanks, appreciate it.
0:12:53 > 0:12:56- Congratulations. Lovely to see you. - Thanks a lot.- Thank you.- Cheers.
0:12:58 > 0:13:03Well, big plans afoot to cram three one-bed flats into this property.
0:13:03 > 0:13:06But given some of the projects Andy's already taken on,
0:13:06 > 0:13:09well, I think this one will be a breeze for him.
0:13:09 > 0:13:12Will it be Steve's super five months, though,
0:13:12 > 0:13:15or a little more of a leisurely six months for Andy?
0:13:15 > 0:13:17And will that safe still be there
0:13:17 > 0:13:20and will they have put a little gem inside?
0:13:20 > 0:13:23You can join me later in the programme to see how quick
0:13:23 > 0:13:24those boys do it.
0:13:29 > 0:13:34The city of Carlisle is steeped in history and wherever you go,
0:13:34 > 0:13:38you walk in the footsteps of Roman soldiers and Jacobite rebels.
0:13:39 > 0:13:43The Tullie House Museum and Art Gallery features exhibits
0:13:43 > 0:13:46detailing the history of Roman occupancy of the region
0:13:46 > 0:13:49as well as the story of Border Reivers.
0:13:49 > 0:13:53The history draws in the tourists and the city these days is
0:13:53 > 0:13:57a vibrant cosmopolitan hubbub with a growing student population too.
0:13:59 > 0:14:01I'm looking at a property in Currock,
0:14:01 > 0:14:03about a mile from the city centre.
0:14:03 > 0:14:05It's a three-bed end terrace.
0:14:06 > 0:14:08This is it. A very handsome looking building it is too.
0:14:08 > 0:14:11£40,000 plus was the guide price.
0:14:12 > 0:14:15Typical of Carlisle with its trademark red bricks,
0:14:15 > 0:14:19this end terrace looks just a little grander with a few extra features
0:14:19 > 0:14:21on the exterior.
0:14:21 > 0:14:23Nice impressive entrance.
0:14:23 > 0:14:27Sort of this porch area here with an inner door which is good
0:14:27 > 0:14:29for keeping the noise and the cold out.
0:14:29 > 0:14:31Then this sort of entrance corridor.
0:14:31 > 0:14:33Stairs up to your bedrooms there.
0:14:33 > 0:14:35But nice high ceilings.
0:14:35 > 0:14:37Through here into the lounge.
0:14:37 > 0:14:39It's quite an interesting design
0:14:39 > 0:14:43because you've got this little archway which leads from this
0:14:43 > 0:14:46front lounge area which, again, is nicely proportioned.
0:14:46 > 0:14:48Big high ceilings too.
0:14:48 > 0:14:51This rear lounge area which, again, a nice size.
0:14:51 > 0:14:55All the fireplaces, things like that, want to be taken out.
0:14:55 > 0:14:58I don't think this style of fireplace is ever really going to
0:14:58 > 0:15:00tick many people's boxes.
0:15:00 > 0:15:03But a nice fireplace in here would make a real dramatic effect.
0:15:03 > 0:15:06So, it's a good size. Doesn't smell damp.
0:15:06 > 0:15:08A few cracks in the windows and things like that
0:15:08 > 0:15:11but you're probably going to put new double glazing in anyway.
0:15:11 > 0:15:15Through the property into the back here where there is really good-sized kitchen.
0:15:15 > 0:15:18At the moment, it's in need of a total refurbishment
0:15:18 > 0:15:20but you've got space.
0:15:20 > 0:15:23And yet more space underneath here which is underneath the stairs.
0:15:23 > 0:15:25That could be a nice larder or storage area.
0:15:26 > 0:15:29It's a lot of house for the money, isn't it?
0:15:29 > 0:15:33# Here comes bargain day
0:15:33 > 0:15:35# Bargain day... #
0:15:35 > 0:15:37'A lot of house indeed.
0:15:37 > 0:15:39'Now, let's have a look upstairs and see if this house
0:15:39 > 0:15:41'really is a bargain.'
0:15:41 > 0:15:45So, upstairs, and it really is quite a surprise.
0:15:45 > 0:15:47It's huge. Three bedrooms.
0:15:47 > 0:15:52The downside, the only bathroom is actually through that third bedroom.
0:15:52 > 0:15:56That's not ideal. You'll definitely want to consider the layout.
0:15:56 > 0:15:58But look at the size. Like downstairs.
0:15:58 > 0:16:02Really nicely proportioned with some lovely fireplaces in this instance.
0:16:02 > 0:16:05Erm... Oh, that's not good.
0:16:05 > 0:16:09Just noticing up there signs of damp on this chimney breast,
0:16:09 > 0:16:13and also looks like it's come in through the attic space there. Hmm.
0:16:13 > 0:16:15I wonder what's causing that?
0:16:17 > 0:16:19I need to go outside and have a look.
0:16:21 > 0:16:24I wonder? This is the gable end wall.
0:16:24 > 0:16:27As you can see, it's this beautiful brick.
0:16:27 > 0:16:29But in places the pointing...
0:16:29 > 0:16:32Look at that, you could get it out with your finger.
0:16:32 > 0:16:35I mean, if you look up there just below the chimney stack,
0:16:35 > 0:16:38looks to me like the pointing there has actually started to
0:16:38 > 0:16:40deteriorate a bit like it has here.
0:16:40 > 0:16:43The thing is, water, rain water, is a little devil.
0:16:43 > 0:16:45It just gets in wherever it can.
0:16:45 > 0:16:48So it will be penetrating through that dust
0:16:48 > 0:16:51and probably causing that damp upstairs.
0:16:51 > 0:16:54So, the only answer - get this wall re-pointed.
0:16:56 > 0:16:59'Re-pointing can set you back a fair bit.
0:16:59 > 0:17:00'It can involve scaffolding costs
0:17:00 > 0:17:05'and then the manpower to take out the old mortar before you re-point.
0:17:05 > 0:17:09'Some of those bricks will definitely need replacing.'
0:17:09 > 0:17:11# It's a brick
0:17:11 > 0:17:12# House... #
0:17:12 > 0:17:16But with a guide price this low it's not much to ask
0:17:16 > 0:17:18for a generous family home.
0:17:20 > 0:17:22Well, at the back of the property,
0:17:22 > 0:17:25a really quite useful little courtyard area.
0:17:25 > 0:17:28There's an outside loo which, you know what, I'd just refurbish
0:17:28 > 0:17:29and keep that.
0:17:29 > 0:17:33What I'm much more interested in is the fact there's a door there
0:17:33 > 0:17:35leading to a little alleyway.
0:17:35 > 0:17:38I'm thinking, I wonder if there's an opportunity to maybe knock
0:17:38 > 0:17:41this wall down and create off-street parking?
0:17:41 > 0:17:43You could certainly get a car in there.
0:17:43 > 0:17:46That would be something that would be worth having. Security and all that stuff.
0:17:46 > 0:17:50So, it's just another positive to add to the house.
0:17:50 > 0:17:53# Good, good, good Good vibrations
0:17:53 > 0:17:54# Ba, bab... #
0:17:56 > 0:18:00Positives are starting to stack up here.
0:18:00 > 0:18:04We invited along an agent from the auction house that sold
0:18:04 > 0:18:06the property to get her opinion.
0:18:06 > 0:18:08It's a really good sized property.
0:18:08 > 0:18:10Two good sized reception rooms,
0:18:10 > 0:18:12access straight into a hall rather than into the lounge.
0:18:12 > 0:18:15And three bedrooms upstairs as well.
0:18:15 > 0:18:18Definitely a huge amount of potential.
0:18:18 > 0:18:21At the moment you have the bathroom access through one bedroom
0:18:21 > 0:18:23but with a bit of re-jigging you could easily retain
0:18:23 > 0:18:25the three bedrooms and have the separate bathroom.
0:18:27 > 0:18:28So far, so good.
0:18:28 > 0:18:32But this house has a very low guide price of £40,000.
0:18:32 > 0:18:35What could it sell for if renovated?
0:18:35 > 0:18:37If the property was to retain three bedrooms,
0:18:37 > 0:18:41you could look in the region of £90-95,000.
0:18:41 > 0:18:44Well, that means plenty of room to make a profit.
0:18:44 > 0:18:46But would it be successful as a rental?
0:18:48 > 0:18:49On the rental market,
0:18:49 > 0:18:52this property could achieve £450 per calendar month.
0:18:52 > 0:18:56Well, a few bits and pieces to sort out, particularly that damp issue,
0:18:56 > 0:18:58and then a thorough programme of refurbishment
0:18:58 > 0:19:02and this already handsome property would turn into a real beauty.
0:19:02 > 0:19:05Let's see who bought it when it went under the hammer.
0:19:05 > 0:19:08Lot number 28. Right, 40 to start.
0:19:08 > 0:19:11Let's not mess about. Been a bit of interest.
0:19:11 > 0:19:1240 here, well done. 41.
0:19:12 > 0:19:1442. 43.
0:19:14 > 0:19:1644. 45.
0:19:16 > 0:19:1846, 47...
0:19:18 > 0:19:22As expected, there was a great deal of interest in the property.
0:19:22 > 0:19:25We return when bids had reached £60,000.
0:19:25 > 0:19:27At £60,000. Are we done?
0:19:27 > 0:19:3061, new bidder.
0:19:30 > 0:19:3362. Half. 62.
0:19:33 > 0:19:34Half.
0:19:34 > 0:19:37With you, sir, at 62. First time with you.
0:19:38 > 0:19:40Second time with you.
0:19:40 > 0:19:42Third and final time then.
0:19:42 > 0:19:45On my left near the aisle. At £62,000.
0:19:45 > 0:19:46Are we done?
0:19:46 > 0:19:48Well done, sir.
0:19:48 > 0:19:50And with the successful bid was Steve.
0:19:52 > 0:19:56Steve had to bid a good bit more than the guide price in the end,
0:19:56 > 0:19:57in fact, over half.
0:19:57 > 0:20:03Paying £22,000 more to secure this house at £62,000.
0:20:03 > 0:20:05So, I wanted to find out what he had planned.
0:20:06 > 0:20:09- Steve, good to meet you.- How are you doing? You all right?
0:20:09 > 0:20:11- Good. Congratulations.- Thanks.
0:20:11 > 0:20:13Tell me why you wanted to buy this place.
0:20:13 > 0:20:15I just came in and saw the potential
0:20:15 > 0:20:17in it straight away when I walked in.
0:20:17 > 0:20:18Just loads of work I could do myself
0:20:18 > 0:20:21and just good project for the summer, really.
0:20:21 > 0:20:23Is this what you do? Are you a property investor or what?
0:20:23 > 0:20:24Joiner.
0:20:24 > 0:20:27So I'm just going to do most of the work myself
0:20:27 > 0:20:29and then drift a few friends in for the rest.
0:20:29 > 0:20:31Have you done something like this before?
0:20:31 > 0:20:34My brother's done a couple, yeah. I've helped him out on his ones.
0:20:34 > 0:20:36How old are you? If you don't mind me asking.
0:20:36 > 0:20:37- 24.- 24, fantastic.
0:20:37 > 0:20:39So, quite early on in your career.
0:20:39 > 0:20:42You can have a portfolio of hundreds by the time you're ready to retire.
0:20:42 > 0:20:44- Aye, hopefully.- Is that the plan?
0:20:44 > 0:20:46With a bit of luck, if it all goes well.
0:20:46 > 0:20:47You are quite young,
0:20:47 > 0:20:50and you have, obviously, had to raise a mortgage
0:20:50 > 0:20:52or put money into this.
0:20:52 > 0:20:54How did you manage to sort the finances out?
0:20:54 > 0:20:57Because, obviously, for younger people it can be quite hard.
0:20:57 > 0:20:58I was quite lucky.
0:20:58 > 0:21:00I was left an inheritance off my granda
0:21:00 > 0:21:03and he would've liked us to put it into some property.
0:21:03 > 0:21:05That was his main thought, really, behind it all.
0:21:05 > 0:21:07So, here I am starting it now.
0:21:07 > 0:21:10- Right, so you think he'd be happy with what you're doing?- Yeah, very.
0:21:10 > 0:21:11Oh, that's great.
0:21:11 > 0:21:14I am sure his grandad would be very pleased to know
0:21:14 > 0:21:17he had helped his grandson get on the property ladder.
0:21:17 > 0:21:21So, what does he intend on doing to the first of his possible
0:21:21 > 0:21:24portfolio of hundreds?
0:21:24 > 0:21:28Basically, just modernise it. New kitchen, new bathroom,
0:21:28 > 0:21:30readjust the bathroom to the centre of the house
0:21:30 > 0:21:34- so you don't have to walk through the bedroom.- Yeah.
0:21:34 > 0:21:38New windows, new carpets, do it up, really.
0:21:38 > 0:21:40Top and bottom. Just everything.
0:21:40 > 0:21:44As well as modernising the interior, Steve intends to repoint
0:21:44 > 0:21:49that gable end and spruce up that somewhat tired-looking garden.
0:21:49 > 0:21:52It sounds like he has got his work cut out for him, then,
0:21:52 > 0:21:55but does his budget match his ambition?
0:21:55 > 0:21:58So, what's the budget for the work?
0:21:58 > 0:22:00- I've narrowed it down to about 20,000 now...- 20, OK.
0:22:00 > 0:22:03That's quite healthy. That's quite a healthy budget.
0:22:03 > 0:22:06- And that's with you doing quite a lot of work yourself, is it?- Yes.
0:22:06 > 0:22:09Steve does need to be careful.
0:22:09 > 0:22:13Remember, he did pay quite a bit over the guide price.
0:22:13 > 0:22:17If he were to overspend, he could end up a bit too close to the
0:22:17 > 0:22:20top valuation resale price of 95,000.
0:22:20 > 0:22:24And, while he's not planning to sell, it will reduce his yield
0:22:24 > 0:22:26when it comes to renting.
0:22:26 > 0:22:29He's hoping to have it ready for a tenant in three months.
0:22:29 > 0:22:32So, does he think this area will be a popular rental?
0:22:33 > 0:22:36It's close to a school. There's a school just up the road,
0:22:36 > 0:22:38so if we get a family in here,
0:22:38 > 0:22:41it's not too far to walk to take the kids to school.
0:22:41 > 0:22:42Attract a good rental.
0:22:42 > 0:22:46Excellent. How was the auction for you?
0:22:46 > 0:22:47All right, nervous.
0:22:47 > 0:22:49Especially when it started coming to me,
0:22:49 > 0:22:51and I was kind of getting it,
0:22:51 > 0:22:53then the guy on the phone would go a bit more.
0:22:53 > 0:22:55I could feel my heart just racing.
0:22:55 > 0:22:57It's quite addictive, really.
0:22:57 > 0:22:59I'm going back, certainly.
0:22:59 > 0:23:01- Were you happy with what you paid? - Yeah.
0:23:01 > 0:23:04The way things were selling today, I thought it would maybe go at 70.
0:23:04 > 0:23:07- Oh, right.- Just because everything was kind of selling a bit better.
0:23:07 > 0:23:10But actually, 62 was my cut-off point,
0:23:10 > 0:23:12which was happy to get it for that.
0:23:12 > 0:23:15- Brilliant. Well, congratulations. - Thank you very much.
0:23:15 > 0:23:18- Good luck with it. We look forward to seeing how you get on.- Cheers.
0:23:20 > 0:23:24So, Steve putting his inheritance to good use
0:23:24 > 0:23:27and buying his first investment property, and a good one it is, too.
0:23:27 > 0:23:30His skills as a joiner will definitely come in useful
0:23:30 > 0:23:31sorting it out.
0:23:31 > 0:23:34How will he get on? You can find out later in the show.
0:23:36 > 0:23:40Coming up in Stoke, Caroline is keeping a close eye on her budget.
0:23:40 > 0:23:42Will the man be getting a wage or...?,
0:23:42 > 0:23:44- No!- Mates' rates?- No. - Mates' rates maybe?
0:23:44 > 0:23:46THEY LAUGH
0:23:48 > 0:23:50Meanwhile, in Carlisle, Steve's day job
0:23:50 > 0:23:53gets in the way of his ambitious timescale.
0:23:53 > 0:23:56Been more important bringing in the money in then spending it!
0:24:00 > 0:24:04Back now to the picturesque spa town of Tunbridge Wells where
0:24:04 > 0:24:09I visited this three-storey property with a guide price of 190-200,000
0:24:09 > 0:24:12that had some interesting features.
0:24:12 > 0:24:14There's still an old...
0:24:14 > 0:24:16Ooh! God, that is so heavy.
0:24:16 > 0:24:17..an original safe.
0:24:17 > 0:24:20This building looked pretty tired,
0:24:20 > 0:24:23but the good news was it had planning permission for three
0:24:23 > 0:24:25one-bedroom flats.
0:24:25 > 0:24:29However, I did have some concerns about the plans.
0:24:29 > 0:24:33They've got the entrance to this basement flat here
0:24:33 > 0:24:35which means you're going to have to go through a whole load
0:24:35 > 0:24:38of excavation to create a big doorway here
0:24:38 > 0:24:43and I just find it a rather strange place to have the entrance
0:24:43 > 0:24:44when, if you come through here,
0:24:44 > 0:24:48you've got a perfectly nice doorway here
0:24:48 > 0:24:51which leads straight out to a little courtyard.
0:24:51 > 0:24:54So, I'm wondering whether it might be worth
0:24:54 > 0:24:56thinking about changing that around.
0:24:56 > 0:24:57So, the plans weren't perfect,
0:24:57 > 0:24:59but this place did have the potential
0:24:59 > 0:25:01to become three good-sized flats.
0:25:01 > 0:25:04So, would a buyer take that route?
0:25:04 > 0:25:08Well, off to auction, and there certainly was a lot of interest.
0:25:08 > 0:25:12The successful bidder, getting the property for 234,000,
0:25:12 > 0:25:15with Homes Under The Hammer veteran Andy
0:25:15 > 0:25:18who teamed up with his brother-in-law Steve.
0:25:18 > 0:25:21While they intended to stick to the plan for three one-bedroom flats,
0:25:21 > 0:25:25they certainly agreed with me about changing the access to the basement.
0:25:25 > 0:25:28It looks like one original feature was, um,
0:25:28 > 0:25:29well...safe.
0:25:29 > 0:25:31- I might leave that safe in.- Really?
0:25:31 > 0:25:32Yeah, might be for a bit of a laugh.
0:25:32 > 0:25:35So when we come back, the safe could still be in the wall?
0:25:35 > 0:25:36Maybe, I don't know. We'll see.
0:25:36 > 0:25:38With something special in it, locked up,
0:25:38 > 0:25:41so whoever buys this, there could be a prize in the middle!
0:25:41 > 0:25:44Setting themselves a timescale of five months,
0:25:44 > 0:25:49and with a budget of 90-100,000, would Andy and Steve turn
0:25:49 > 0:25:53this shell of a building into three desirable one-bed flats?
0:25:53 > 0:25:56We returned just over nine months later to find out.
0:26:09 > 0:26:13Wow! As you can see, the building has been completely transformed
0:26:13 > 0:26:16from a shell to these beautifully finished flats.
0:26:16 > 0:26:19Upstairs, and the layout is the mirror of the main floor,
0:26:19 > 0:26:23with the boys adding a new extension up here to house the bathroom,
0:26:23 > 0:26:26thus freeing up more living space.
0:26:26 > 0:26:29The big question is, what happened to that basement layout?
0:26:29 > 0:26:33Did they change the plans to put the entrance where we all thought
0:26:33 > 0:26:34it should go at the back?
0:26:35 > 0:26:37Yes, they did. Perfect!
0:26:39 > 0:26:41So, how did it all go?
0:26:41 > 0:26:44Well, Andy is abroad, so, take it away, Steve.
0:26:44 > 0:26:47The first job was to strip everything out
0:26:47 > 0:26:49and basically make everything safe.
0:26:49 > 0:26:52So, we found that there was a lot of structural work
0:26:52 > 0:26:53to be done in the basement.
0:26:53 > 0:26:57We put in, I think, about six steels down in the basement.
0:26:57 > 0:26:59That was quite a big job.
0:26:59 > 0:27:02As it's holding up the rest of the building.
0:27:02 > 0:27:06After that, we built our extension on the rear of the property
0:27:06 > 0:27:08and then from there we started
0:27:08 > 0:27:11getting all of our first fixings down.
0:27:11 > 0:27:13Progressed through to the acoustic treatment on the floors
0:27:13 > 0:27:15and the ceilings.
0:27:15 > 0:27:17Had the place plastered, painted
0:27:17 > 0:27:19and then kitchens in.
0:27:19 > 0:27:22The bathrooms were a bit of a talking point
0:27:22 > 0:27:25between me and Andy because we both had different ideas
0:27:25 > 0:27:27on how we could make the bathrooms work.
0:27:27 > 0:27:30But we came to an agreement in the end that the way that we've
0:27:30 > 0:27:32done it is the best use of the space
0:27:32 > 0:27:35and also maintaining the size of the bedrooms.
0:27:35 > 0:27:38The wet rooms are a good solution to a very tight space,
0:27:38 > 0:27:41but speaking of Andy, where is he?
0:27:41 > 0:27:45Basically, he moved to Saint Lucia earlier in the year.
0:27:45 > 0:27:47So, yeah, he pretty much left me
0:27:47 > 0:27:50to just carry on and finish off the job.
0:27:50 > 0:27:55All right for some! So, how did that work with Andy being so far away?
0:27:55 > 0:27:59I see that he made sure certain features stayed intact.
0:27:59 > 0:28:01We have got a good working relationship,
0:28:01 > 0:28:03and, obviously, a good personal relationship.
0:28:03 > 0:28:07He trusts me with the builds and it's good experience for me
0:28:07 > 0:28:11not to have to rely on him to make decisions.
0:28:12 > 0:28:16I'm happy to hear it all worked out and it's looking incredible,
0:28:16 > 0:28:18much like the budget.
0:28:18 > 0:28:22Having originally set themselves a maximum budget of 100,000,
0:28:22 > 0:28:25they've actually come in at two grand under that,
0:28:25 > 0:28:26which is brilliant!
0:28:27 > 0:28:33This means their total spend on the conversion is 332,000.
0:28:33 > 0:28:35But the timescales did not fare as well.
0:28:38 > 0:28:43We originally hoped for five to six months to complete the job.
0:28:43 > 0:28:46But, the building was in quite a bad state.
0:28:46 > 0:28:49Once we stripped all the walls back, we discovered that there was
0:28:49 > 0:28:53a lot of structural work that needed doing, as well.
0:28:53 > 0:28:54Well, Steve and his team might
0:28:54 > 0:28:56have finished three months later than planned,
0:28:56 > 0:28:58but the place is looking brilliant.
0:29:02 > 0:29:04So, what will two local estate agents think?
0:29:04 > 0:29:06Let's start with the one
0:29:06 > 0:29:08that saw the property last time.
0:29:08 > 0:29:10What they have done here is amazing.
0:29:10 > 0:29:13They've really gone through all three flats
0:29:13 > 0:29:15and made three very nice self-contained units.
0:29:15 > 0:29:17Very impressed.
0:29:17 > 0:29:18I think the main selling point
0:29:18 > 0:29:20is going to be the finish on these places
0:29:20 > 0:29:23because competing properties may not be finished as nicely.
0:29:23 > 0:29:25So someone might compromise
0:29:25 > 0:29:29a little bit of space just to get that move-in feel.
0:29:30 > 0:29:35So, onto the valuations. Let's start with the rental, shall we?
0:29:35 > 0:29:37The rental valuations for these properties
0:29:37 > 0:29:39would be similar for all three
0:29:39 > 0:29:43and that would be between £600 and £650 per calendar month.
0:29:43 > 0:29:45For the rental valuations, I think
0:29:45 > 0:29:50we've got figures between £675 and £685 per calendar month.
0:29:50 > 0:29:53That top figure would mean a rental yield of just
0:29:53 > 0:29:56over 7% for all three flats.
0:29:56 > 0:30:00But is that enough for them to change their plans to sell?
0:30:00 > 0:30:02Yeah, that's why we're not interested
0:30:02 > 0:30:04in the rental market, really.
0:30:04 > 0:30:07We just wanted to get a quick turnover
0:30:07 > 0:30:10and then on to the next project.
0:30:10 > 0:30:13So, is that fast turnaround on the cards?
0:30:13 > 0:30:18Will Andy and Steve make a decent profit on their £332,000 investment?
0:30:18 > 0:30:22They have to make at least 110,000 to break even.
0:30:24 > 0:30:27My valuation for these three properties, they're all the same.
0:30:27 > 0:30:31It's going to be £115,000 to £130,000.
0:30:31 > 0:30:36For the sale valuations, I would put them between £145-£150,000.
0:30:36 > 0:30:40The upstairs flat being slightly higher and the downstairs bottom one
0:30:40 > 0:30:43being slightly lower because it hasn't got the same outside view.
0:30:43 > 0:30:47That top valuation would mean a potential profit
0:30:47 > 0:30:51of 113,000 minus the taxes and fees,
0:30:51 > 0:30:55while the lower valuation would mean a profit of just 13,000.
0:30:57 > 0:31:00Yeah, it's about what we expected, to be honest.
0:31:00 > 0:31:04The one that come a bit lower, I don't think that's realistic.
0:31:04 > 0:31:08I don't think anyone would be would be selling these flats
0:31:08 > 0:31:10at 115 to 130 at all.
0:31:11 > 0:31:15So, Steve's confident he can get that top valuation
0:31:15 > 0:31:17but what's next for him?
0:31:17 > 0:31:19Off to join Andy in Saint Lucia?
0:31:19 > 0:31:22He's trying to drag me out there. But we'll see.
0:31:22 > 0:31:25You never know, he'll probably find a project out there that he
0:31:25 > 0:31:27wants to develop out there.
0:31:27 > 0:31:31But it would be slightly different in the 40-degree heat and humidity.
0:31:31 > 0:31:35I don't mind, as long as it's near the beach, I don't mind it.
0:31:40 > 0:31:41I'm in Shelton in Stoke-on-Trent.
0:31:41 > 0:31:44It's an academic hub of the city, being home to
0:31:44 > 0:31:48Staffordshire University and Stoke-on-Trent College.
0:31:48 > 0:31:52With over 20,000 students enrolled in the previous academic year,
0:31:52 > 0:31:55there is a steady demand for accommodation.
0:31:55 > 0:31:59Good territory for a would-be property developer, I think.
0:31:59 > 0:32:02All we need now is a property to look at.
0:32:02 > 0:32:05Only five minutes from Stoke train station is the property
0:32:05 > 0:32:08I'm here to see, right in the heart of students-ville.
0:32:08 > 0:32:13It's a two-bed mid terraced house with a guide price of £35,000 plus.
0:32:13 > 0:32:17Will it be more student accommodation? Let's find out.
0:32:19 > 0:32:21OK.
0:32:21 > 0:32:24If it is student accommodation, they won't be very happy with it.
0:32:24 > 0:32:26It's not like mum's, I can tell you that.
0:32:26 > 0:32:28In a bit of a state in here.
0:32:28 > 0:32:30I can see there's plaster missing off the walls,
0:32:30 > 0:32:32it's down to the bare brick.
0:32:32 > 0:32:35I can see there's a door there that's been blocked up.
0:32:35 > 0:32:38You need to put some double glazing in there.
0:32:38 > 0:32:41Those windows look a little bit feeble. Not in great condition.
0:32:41 > 0:32:44If you were thinking about putting students in here,
0:32:44 > 0:32:46you could possibly put a wall up here, maybe,
0:32:46 > 0:32:50just create a corridor and have that as one of the rooms.
0:32:50 > 0:32:52If you wanted to.
0:32:52 > 0:32:56Straight through into this second reception room here
0:32:56 > 0:32:58which is more of the same.
0:32:58 > 0:32:59It just feels a bit cold.
0:32:59 > 0:33:02Doesn't smell too good, I've got to say.
0:33:02 > 0:33:04You need to put some new flooring down.
0:33:04 > 0:33:06Again, new windows.
0:33:06 > 0:33:08And it's all very dated.
0:33:10 > 0:33:12Into the kitchen, a galley kitchen.
0:33:12 > 0:33:14Well, I say kitchen, it's sort of a lack of a kitchen.
0:33:14 > 0:33:17There's nothing in here at all apart from a sink
0:33:17 > 0:33:19and a bit of work surface.
0:33:19 > 0:33:23All a little bit messy. This is just a rip out and start again.
0:33:23 > 0:33:25It's got a good bit of space
0:33:25 > 0:33:28but you would have to spend a few quid on turning it around.
0:33:31 > 0:33:33'So, not a great start.
0:33:33 > 0:33:37'It obviously has potential but it's immediately apparent there's
0:33:37 > 0:33:39'an awful lot of work to be done here.
0:33:39 > 0:33:42'And that smell? It's not great.'
0:33:43 > 0:33:45# And I smell
0:33:45 > 0:33:47# Ooooh, trouble... #
0:33:47 > 0:33:51'Let's see if things improve upstairs.'
0:33:52 > 0:33:57Upstairs we have two bedrooms, one either side of the landing.
0:33:57 > 0:33:59It's in a bit of state, this one.
0:33:59 > 0:34:02It's a decent size looking out onto the back yard.
0:34:02 > 0:34:05And the other bedroom is here to the front of the property.
0:34:05 > 0:34:09They're not in great condition, they haven't been tended to in some time.
0:34:09 > 0:34:12And I'm not sure what's going on just there.
0:34:12 > 0:34:15There's a big bucket, bowl of water.
0:34:15 > 0:34:18That concerns me. Seems to be dropping quite a lot.
0:34:18 > 0:34:22Windows as well would need changing. They're single-glazed.
0:34:22 > 0:34:23Definitely get some double-glazed there
0:34:23 > 0:34:25because you're quite close to the road.
0:34:25 > 0:34:28And the smell is no better up here.
0:34:28 > 0:34:31You have to rip all this out and start again.
0:34:31 > 0:34:34I'm going to go outside and have a breather.
0:34:34 > 0:34:37# Raindrops keep falling on my head... #
0:34:37 > 0:34:41'The guide price of £35,000 plus is one thing,
0:34:41 > 0:34:43'the to-do list is another.
0:34:43 > 0:34:45'The roof and the electrics for starters.
0:34:45 > 0:34:48'And you'd need to factor in a fair few skips as well.'
0:34:50 > 0:34:53So, we do have a bit of a back garden, back yard.
0:34:53 > 0:34:57It is small, it is overgrown, shrubs everywhere.
0:34:57 > 0:34:59If you can see beyond it, though, it's very low-maintenance
0:34:59 > 0:35:01because it's slabbed.
0:35:01 > 0:35:03It's the kind of back garden a student would want -
0:35:03 > 0:35:05very low-maintenance.
0:35:05 > 0:35:08# That's why I'm easy
0:35:08 > 0:35:10# Ah-ah-ah... #
0:35:10 > 0:35:13OK, so maybe it's just the garden that's easy.
0:35:13 > 0:35:17But this place is ticking all the boxes in terms of a student let.
0:35:17 > 0:35:19With the added bonus you could turn it from
0:35:19 > 0:35:22a two to a three bedroom without much hassle.
0:35:23 > 0:35:26I think this is a no-brainer.
0:35:26 > 0:35:28But what does a local estate agent think?
0:35:28 > 0:35:32My first impressions since walking through the door, I can
0:35:32 > 0:35:35definitely see the potential that this will have for a student let.
0:35:35 > 0:35:38I think it needs a complete redevelopment.
0:35:38 > 0:35:41It needs a new kitchen and a new bathroom and substantial work
0:35:41 > 0:35:44throughout the property in order to get it up to a decent standard.
0:35:46 > 0:35:47As I suspected,
0:35:47 > 0:35:51the case for this being a student let just gets stronger and stronger.
0:35:51 > 0:35:55So, let's hear those valuations, starting with the rental.
0:35:55 > 0:35:59For a two-bed terraced property for the private market I would look to,
0:35:59 > 0:36:03I would think it would achieve around £400 per calendar month.
0:36:03 > 0:36:07For students, I think that this property will achieve £60 per room,
0:36:07 > 0:36:11per week which, over a month, will be £720 per calendar month.
0:36:14 > 0:36:17See? What did I say? A no-brainer.
0:36:17 > 0:36:20So, what if you didn't fancy letting it out but wanted to do it up
0:36:20 > 0:36:23and sell it on? How much could this house sell for?
0:36:23 > 0:36:27I would look to sell this property between £60-65,000
0:36:27 > 0:36:29as a two-bed terrace.
0:36:29 > 0:36:34If it was a three-bed terrace for specifically, maybe, for students,
0:36:34 > 0:36:38then I would say we could probably achieve between £65-70,000.
0:36:39 > 0:36:43It's not in great condition in there and it does need a fair amount
0:36:43 > 0:36:46of work doing, and it doesn't smell too good either.
0:36:46 > 0:36:50But if you can see and smell beyond that, this place has potential.
0:36:50 > 0:36:53Let's see who saw that potential when it went under the hammer.
0:36:55 > 0:36:58What shall we say, then, for lot number one? We'll start it at 30.
0:36:58 > 0:37:00It's got to be that.
0:37:00 > 0:37:0329, I'll start, then. 29 bid. Thank you, at £29,000.
0:37:03 > 0:37:04Looking for 30 now, then.
0:37:04 > 0:37:06At 29... 30 bid.
0:37:06 > 0:37:09At 30,000. 31? 31.
0:37:09 > 0:37:1232. 33.
0:37:12 > 0:37:1434. 35.
0:37:15 > 0:37:18At 35,000 to my right, then.
0:37:18 > 0:37:21At £35,000. 36, anywhere else?
0:37:21 > 0:37:24Looking for 36... 36. At 36.
0:37:24 > 0:37:2537.
0:37:25 > 0:37:28With a lot of interest in this property,
0:37:28 > 0:37:32we return when the bidding reached £42,000.
0:37:32 > 0:37:3342, sir?
0:37:33 > 0:37:3542.
0:37:35 > 0:37:3843. 44, sir?
0:37:38 > 0:37:4044.
0:37:40 > 0:37:4145? 45.
0:37:43 > 0:37:45Shaking his head. 45 with you, sir.
0:37:45 > 0:37:4746, anywhere else?
0:37:47 > 0:37:48If not, 45 once.
0:37:48 > 0:37:51Twice. Third and last time. £45,000.
0:37:51 > 0:37:53You bought it, sir. Well done.
0:37:57 > 0:38:01With that successful bid of £45,000 was electrician Jez.
0:38:01 > 0:38:05Together with wife Carolyn, who's a midwife, they already have
0:38:05 > 0:38:08a property let up the road, so will it be more of the same?
0:38:08 > 0:38:12I met them back at the property to find out their plans.
0:38:12 > 0:38:15- Nice to meet you, Carolyn. Congratulations.- Thank you.
0:38:15 > 0:38:17- Jez, nice to meet you.- Thank you.
0:38:17 > 0:38:19So, who found this property?
0:38:19 > 0:38:22I did, about two weeks ago. Two days before the auction.
0:38:22 > 0:38:25- And you just fell upon it? Or were you looking?- Looking.
0:38:25 > 0:38:27We've got a property up the road, about 300 yards up the road.
0:38:27 > 0:38:30We're looking to invest in more properties in the area
0:38:30 > 0:38:32and we just happened to see the sign.
0:38:32 > 0:38:34- So, did you get a chance to have a look?- No, not at all.
0:38:34 > 0:38:36We went in blind.
0:38:36 > 0:38:39Oh, dear. You've broken one of the Hammer rules already.
0:38:39 > 0:38:43You didn't view the property. So, I'm telling you off before we start!
0:38:43 > 0:38:45Now you're inside, you've had a chance to see inside,
0:38:45 > 0:38:49is there anything that has frightened you or surprised you?
0:38:50 > 0:38:54Surprised with the state of the house, how bad it is actually.
0:38:54 > 0:38:57I mean, we expected it to be worn out, tired, everything else,
0:38:57 > 0:39:00but doors hanging off, ceilings hanging down,
0:39:00 > 0:39:04the actual smell in the actual building. It's not very pleasant.
0:39:04 > 0:39:06Yes, it's quite potent, isn't it?
0:39:06 > 0:39:08- It is quite potent.- Just a bit!
0:39:08 > 0:39:11Jez and Carolyn have taken quite a risk buying blind
0:39:11 > 0:39:14but hopefully, once the house has been cleared,
0:39:14 > 0:39:16it'll start to improve.
0:39:16 > 0:39:18Talking of improving, what are their plans?
0:39:19 > 0:39:21Rent to student market.
0:39:21 > 0:39:23The house up the road is full of students
0:39:23 > 0:39:25and there seems to be a shortage of accommodation.
0:39:25 > 0:39:27What are you going to do to it?
0:39:27 > 0:39:29Basically, we're going to start from new doors
0:39:29 > 0:39:32and new windows outside. Then obviously new doors inside.
0:39:32 > 0:39:34We're going to have a new kitchen, new bathroom,
0:39:34 > 0:39:36rewired and obviously re-plastered
0:39:36 > 0:39:39and then it will be the cosmetics, the decorating and carpets.
0:39:39 > 0:39:41So, the configurations is staying the same?
0:39:41 > 0:39:43You're not knocking any walls down?
0:39:43 > 0:39:46What we intend to do is make the front room a bedroom
0:39:46 > 0:39:48so you'll access the house from the rear of the house
0:39:48 > 0:39:50through the kitchen into the middle sitting room
0:39:50 > 0:39:54and then two bedrooms upstairs and one through to the lounge.
0:39:54 > 0:39:57That's a good idea, having the entrance at the back.
0:39:57 > 0:40:00It means that the front room isn't going to lose any space
0:40:00 > 0:40:03by making a hallway. Good thinking, Jez.
0:40:03 > 0:40:04So, all good.
0:40:04 > 0:40:06But there's that drip to discuss.
0:40:08 > 0:40:12Jez, tell me about that because it's concerning me.
0:40:12 > 0:40:14- Is it a concern of yours? - It is a concern.
0:40:14 > 0:40:16I was waiting for you to ask that question!
0:40:16 > 0:40:19I haven't been in the attic yet. I know the radiator is leaking.
0:40:19 > 0:40:21I know the water is coming from the radiator.
0:40:21 > 0:40:25The floor is dry and has been dry for the last month
0:40:25 > 0:40:28so with all the rain we've had, I'm assuming the roof is good.
0:40:28 > 0:40:29We're hoping the roof's good.
0:40:29 > 0:40:31But, yes, we're going to find that one out.
0:40:31 > 0:40:33So, you'll get an expert to look at that?
0:40:33 > 0:40:36Yes, I think someone's fallen through the ceiling, basically.
0:40:36 > 0:40:38I guess there's so much work to be done here,
0:40:38 > 0:40:41they can't afford to be fazed by any of it.
0:40:41 > 0:40:44So, how much do they have in the kitty for the renovation work?
0:40:44 > 0:40:46The top budget would be 20.
0:40:46 > 0:40:48I think we can do it for around 16.
0:40:48 > 0:40:5017.
0:40:50 > 0:40:53- Don't fall out, now!- Exactly.
0:40:53 > 0:40:55Who's going to do the work?
0:40:55 > 0:40:59All the electrical rewiring, that'll be myself and the lads.
0:40:59 > 0:41:02I've got a team that normally helps us with properties that'll do
0:41:02 > 0:41:05the fitting of the bathroom fitting of the kitchen,
0:41:05 > 0:41:07skirtings and doors and windows, and then I'll come in and do
0:41:07 > 0:41:10the decorating and the carpets afterwards. So, a combined effort.
0:41:10 > 0:41:14- Carolyn, tell me what you're going to do.- Cleaning!
0:41:14 > 0:41:15And the accounts too.
0:41:15 > 0:41:18So you'll keep an eye on the budget?
0:41:18 > 0:41:19Yeah, definitely.
0:41:19 > 0:41:22- Will the man be getting a wage?- No.
0:41:22 > 0:41:24Mates' rates maybe?
0:41:27 > 0:41:28So it's a team effort here.
0:41:28 > 0:41:30With help from their youngest son, Michael,
0:41:30 > 0:41:33and nephew, Dominic, who are fortunately both electrical
0:41:33 > 0:41:37apprentices, they plan to get the work complete in three months,
0:41:37 > 0:41:39just in time for the students getting back.
0:41:41 > 0:41:43Are you happy with what you've got, Carolyn?
0:41:43 > 0:41:46Yes, I will be when it's finished.
0:41:46 > 0:41:50I think, initially, it was a shock, walking through the door,
0:41:50 > 0:41:54but I think if we can get it turned over how we would like it,
0:41:54 > 0:41:55I think it'll be good.
0:41:55 > 0:41:56I think you'll be OK.
0:41:56 > 0:41:58I think you've got all your bases covered.
0:41:58 > 0:42:01- Purse strings?- Definitely.
0:42:01 > 0:42:03- Labour?- Labour's sorted out. - That'll be fine.
0:42:03 > 0:42:04- Good luck, I wish you all the best. - Thank you.
0:42:04 > 0:42:07- Good luck, pal. - Cheers, thank you.
0:42:07 > 0:42:10Carolyn and Jez have got their work cut out with this property
0:42:10 > 0:42:13but I think they're spot-on, making it into student accommodation
0:42:13 > 0:42:15and they do make a good team.
0:42:15 > 0:42:19Carolyn's got the finances and Jez seems to have all the labour
0:42:19 > 0:42:22covered, but I am slightly concerned about that roof.
0:42:22 > 0:42:25You can find out how they get on later in the programme.
0:42:28 > 0:42:30Now we've seen what one of our buyers have done,
0:42:30 > 0:42:31let's take a look at the others.
0:42:31 > 0:42:33Did they get everything done on time?
0:42:33 > 0:42:36And is there profit in the pipeline? Let's have a look.
0:42:38 > 0:42:41Back now to the historic city of Carlisle
0:42:41 > 0:42:45where I visited this handsome three-bed end terraced house
0:42:45 > 0:42:49with a low guide price of £40,000 plus.
0:42:49 > 0:42:52# The bargain store is open, come inside...#
0:42:52 > 0:42:57Inside, the property was in need of a serious makeover,
0:42:57 > 0:43:00including a new kitchen as well as a structural reshuffle to move
0:43:00 > 0:43:04the bathroom, which was only accessible through the back bedroom.
0:43:04 > 0:43:09# With a little mending, it could be as good as new... #
0:43:09 > 0:43:11And there was also the issue of that damp
0:43:11 > 0:43:14which required some investigating.
0:43:14 > 0:43:16This is the gable end wall.
0:43:16 > 0:43:20As you can see it's this beautiful brick but, in places,
0:43:20 > 0:43:22the pointing, look at that.
0:43:22 > 0:43:25Oh, my gosh. You can actually just get it out with your finger.
0:43:25 > 0:43:28The thing is, water, rainwater, is a little devil,
0:43:28 > 0:43:31it just gets in wherever it can so it will be penetrating
0:43:31 > 0:43:35through that dust and probably causing that damp upstairs.
0:43:35 > 0:43:39So, the only answer, get this wall re-pointed.
0:43:39 > 0:43:42Despite the growing list of renovations needed,
0:43:42 > 0:43:45I still thought this house was a real bargain.
0:43:45 > 0:43:49As did the punters on auction day, who battled away for the property.
0:43:49 > 0:43:50Well done, sir.
0:43:51 > 0:43:54But, with a successful bid of £62,000
0:43:54 > 0:43:58was joiner and all-round handyman, Steve.
0:43:58 > 0:44:01Steve used inheritance from his late grandfather to buy the house
0:44:01 > 0:44:05and plans to use the property to springboard himself into
0:44:05 > 0:44:09a new and hopefully prosperous career in property development.
0:44:09 > 0:44:12- How old are you, if you don't mind me asking?- 24.
0:44:12 > 0:44:14Fantastic, so quite early on in your career.
0:44:14 > 0:44:17You could have a portfolio of hundreds by the time you retire.
0:44:17 > 0:44:21- Is that the plan?- With a bit of luck, if it all goes well.
0:44:21 > 0:44:25This being his first poverty development, Steve was aiming high.
0:44:25 > 0:44:28He planned on modernising and decorating throughout,
0:44:28 > 0:44:33installing a new kitchen, moving the bathroom out of the back bedroom
0:44:33 > 0:44:37and re-pointing that troublesome gable end to stop the damp.
0:44:37 > 0:44:40Intending on renting out the house, Steve had set himself
0:44:40 > 0:44:45a timescale of three months and a budget of £20,000.
0:44:45 > 0:44:50Well, it's now 13 months later and we return to see how he got on.
0:45:00 > 0:45:03Wow! As you can see,
0:45:03 > 0:45:05Steve has completely transformed the ground floor of the house.
0:45:05 > 0:45:09Where once there were two tired-looking reception rooms,
0:45:09 > 0:45:12he's removed the dividing doors
0:45:12 > 0:45:16and created a real feeling of space with this open-plan design.
0:45:16 > 0:45:21He also closed off the original door into the front room to create
0:45:21 > 0:45:25extra wall space, and got rid of those dated fireplaces,
0:45:25 > 0:45:28installing a tasteful period one instead.
0:45:28 > 0:45:31Simple changes but to a dramatic effect.
0:45:31 > 0:45:34Through into the kitchen and it's out with the old
0:45:34 > 0:45:35and in with the new again
0:45:35 > 0:45:39with these bright new units and modern fittings.
0:45:39 > 0:45:43Upstairs and the transformation continues.
0:45:43 > 0:45:45Upstairs in the back bedroom, you had to walk through
0:45:45 > 0:45:48that back bedroom to get to the bathroom so what I've done,
0:45:48 > 0:45:50I've taken that bathroom out of there,
0:45:50 > 0:45:51moved it into the centre of the house.
0:45:51 > 0:45:54With it being an end property,
0:45:54 > 0:45:57I've been able to put a window in the bathroom now.
0:45:57 > 0:46:00So it's made that bedroom in the centre of the house slightly
0:46:00 > 0:46:03smaller, which doesn't matter too much. It's still a single bedroom.
0:46:03 > 0:46:07Main bedroom on the front, I just kept the same.
0:46:07 > 0:46:10I just plastered, some down lights, made it a bit smarter.
0:46:10 > 0:46:14Then some mirrored slide robes in the hall to cast a bit of light
0:46:14 > 0:46:17and make the whole space feel a bit bigger, really.
0:46:18 > 0:46:22Indeed. Space is what Steve has achieved here.
0:46:22 > 0:46:23Like the rest of the house,
0:46:23 > 0:46:27Steve has completely re-plastered each room and installed new doors
0:46:27 > 0:46:31and windows, breathing new life into this once tired-looking home.
0:46:32 > 0:46:34I feel really good about it.
0:46:34 > 0:46:36When I walk around and look at it,
0:46:36 > 0:46:40especially the first day I walked in, it was like a '60s time warp.
0:46:40 > 0:46:45I walk about now, I'm proud of what we've done and what we've achieved.
0:46:45 > 0:46:46And so he should be.
0:46:46 > 0:46:50Out in the garden, and Steve has tidied the place up a bit,
0:46:50 > 0:46:53leaving plenty of space for his new tenants to make their mark.
0:46:55 > 0:46:57But there's just one thing Steve's still to complete
0:46:57 > 0:46:59as the bad weather has held him back.
0:47:01 > 0:47:03There is a bit of pointing to do in the gable end.
0:47:03 > 0:47:06Some of the faces of the bricks have bust off as well
0:47:06 > 0:47:09so with the bricks being porous,
0:47:09 > 0:47:12that will let more damp in so I just need a good couple of days
0:47:12 > 0:47:17really, preferably in the next month or so before any frost comes.
0:47:17 > 0:47:19So, only a couple more days of work
0:47:19 > 0:47:22and the renovations will be complete.
0:47:22 > 0:47:25But speaking of time, Steve originally set himself
0:47:25 > 0:47:30a timescale of three months and, by my watch, it looks more like 13.
0:47:30 > 0:47:32It's down to workload really.
0:47:32 > 0:47:34I thought I would get a few days a week on it
0:47:34 > 0:47:38but I've only been getting a night and a Saturday.
0:47:38 > 0:47:40It's been more important bringing the money in than spending it!
0:47:40 > 0:47:43# One, two, three, four... #
0:47:43 > 0:47:46Unfortunately, not only has he gone over his timescale,
0:47:46 > 0:47:51but he's gone over that £20,000 budget and has now spent 23,000.
0:47:51 > 0:47:54I was a bit worried he could overspend, even though
0:47:54 > 0:47:56his budget was healthy to start with,
0:47:56 > 0:47:59but with a finish like this, he might just get away with it.
0:48:04 > 0:48:06What will two local estate agents think?
0:48:06 > 0:48:09First, the agent who saw it before.
0:48:09 > 0:48:13My first impressions of the property, he's done a fantastic job.
0:48:13 > 0:48:16They've completed the property to a really high standard
0:48:16 > 0:48:18throughout, and made some really good changes.
0:48:18 > 0:48:21I think they've definitely done the right thing
0:48:21 > 0:48:23by moving the bathroom from the back of the house to the front.
0:48:23 > 0:48:25They've got a really good-sized bathroom.
0:48:25 > 0:48:28The third bedroom's a single but it's still really good size.
0:48:28 > 0:48:30The main selling points of this property,
0:48:30 > 0:48:33obviously the standard of finish that they've done here.
0:48:33 > 0:48:34They've done a fantastic job.
0:48:34 > 0:48:37Also, the location is good, it's close to amenities,
0:48:37 > 0:48:38it's handy for the city centre,
0:48:38 > 0:48:40you can walk to work from here quite easily.
0:48:40 > 0:48:42It's ideal for people looking for around here.
0:48:42 > 0:48:45These properties round here sell relatively easily
0:48:45 > 0:48:47and especially in this kind of condition, I think
0:48:47 > 0:48:50they'll have no problem at all securing a buyer.
0:48:50 > 0:48:54That's all very positive, so Steve plans to rent this house.
0:48:54 > 0:49:00His current spend is 85,000. So what kind of rental could he expect?
0:49:00 > 0:49:02If this property was placed on the rental market,
0:49:02 > 0:49:07I believe it could achieve in the region of £495 per calendar month.
0:49:07 > 0:49:09If this property came to the rental market,
0:49:09 > 0:49:13it should achieve £495 per calendar month.
0:49:13 > 0:49:17I thought around about £500 a month. Thereabouts.
0:49:17 > 0:49:19It's the sort of figure I had in my head at the time.
0:49:19 > 0:49:21We won't quibble over a fiver a month.
0:49:21 > 0:49:26£500 per calendar month would mean a yield of around 7%
0:49:26 > 0:49:29but what sort of resell figure could he expect?
0:49:29 > 0:49:32I think this property would achieve in the region of £110,000
0:49:32 > 0:49:34on the sales market.
0:49:34 > 0:49:38If I was to put this property up for sale, I would market it at £115,000.
0:49:38 > 0:49:41Yeah. The values are probably about bang-on what I thought.
0:49:41 > 0:49:45I thought about 110. Summat around that sort of way.
0:49:46 > 0:49:48So, at that top valuation,
0:49:48 > 0:49:52Steve could stand to make around £30,000 before taxes and fees.
0:49:52 > 0:49:55Not bad for his first property development.
0:49:55 > 0:49:58So, I wonder if he could be swayed into selling.
0:49:58 > 0:50:00No. I think it's more of a long-term investment.
0:50:00 > 0:50:02You know, with the rent coming in.
0:50:02 > 0:50:05The property's going to be mine for as long as I keep it.
0:50:05 > 0:50:07I can always sell it in the future.
0:50:07 > 0:50:11Steve's property debut is a fantastic success.
0:50:11 > 0:50:16I reckon the quality of his work is a real testament to his grandad.
0:50:16 > 0:50:17I wish my grandad was still here
0:50:17 > 0:50:19to come and have a look around it, really.
0:50:19 > 0:50:22You know, he was right into what we were doing
0:50:22 > 0:50:24and this is what he wanted us to put the money at,
0:50:24 > 0:50:27so he'd have been proud.
0:50:29 > 0:50:32MUSIC: Rip It Up by Orange Juice
0:50:32 > 0:50:35Back now to Shelton in Stoke-on-Trent
0:50:35 > 0:50:38where, earlier, I visited this two-bedroom terraced house,
0:50:38 > 0:50:41bringing a whole new meaning to the term fixer-upper.
0:50:41 > 0:50:45It wasn't just the mess that was bothering me.
0:50:45 > 0:50:48I'm not sure what's going on just there.
0:50:48 > 0:50:52There's a big bucket, bowl of water, that concerns me.
0:50:52 > 0:50:56It seems to be dropping quite a lot and the smell is no better up here.
0:50:56 > 0:51:00You'd have to rip all this out and start again.
0:51:00 > 0:51:02I'm going to go outside and have a breather.
0:51:02 > 0:51:06# Rip it up and start again... #
0:51:06 > 0:51:08So, potentially, a hole in the ceiling
0:51:08 > 0:51:11and a serious need of a clean-up.
0:51:11 > 0:51:14That £35,000-plus guide price was starting to make sense.
0:51:14 > 0:51:19However, being located in a recently-coined University Quarter
0:51:19 > 0:51:21and the potential of becoming a three-bed
0:51:21 > 0:51:23using that front reception room,
0:51:23 > 0:51:26I thought this place was ideal for a student let.
0:51:26 > 0:51:31# Rip it up and start again... #
0:51:31 > 0:51:35So, off to the auction it went. Only to be snapped up...
0:51:35 > 0:51:38£45,000. You bought it, Sir. Well done.
0:51:38 > 0:51:42..by Jez and Carolyn for £45,000.
0:51:42 > 0:51:45The pair already had a property on that street that they let out
0:51:45 > 0:51:47to students and plan to do the same here.
0:51:47 > 0:51:50However, this was their first purchase at auction
0:51:50 > 0:51:53and, it turns out, a bit of a gamble.
0:51:53 > 0:51:56- So, who found this property?- I did.
0:51:56 > 0:51:59- About two weeks ago. Two days before the auction.- Went in blind.
0:51:59 > 0:52:02Oh, dear. You broke one of the Hammer rules already.
0:52:02 > 0:52:06You didn't view the property. So I'm telling you off before we start.
0:52:08 > 0:52:09Despite the challenges,
0:52:09 > 0:52:11the couple were determined to have the place ready
0:52:11 > 0:52:13for the beginning of term
0:52:13 > 0:52:15and set themselves a timescale of three months.
0:52:15 > 0:52:18Armed with a budget of in between 16 and 20 grand,
0:52:18 > 0:52:20depending on who's right,
0:52:20 > 0:52:22and with the help of youngest son Michael and nephew Dominic,
0:52:22 > 0:52:26both electrical apprentices, Jez and Carolyn had big plans.
0:52:28 > 0:52:30New doors and new windows outside.
0:52:30 > 0:52:31Obviously, new doors inside.
0:52:31 > 0:52:35Going to have a new kitchen, a new bathroom, be rewired
0:52:35 > 0:52:38and, obviously, re-plastered and then it'd be the cosmetics,
0:52:38 > 0:52:39the decorating and carpets.
0:52:39 > 0:52:42What we intend to do is make the front room a bedroom
0:52:42 > 0:52:44so you can access the house from the rear of the house
0:52:44 > 0:52:47through the kitchen into the middle sitting room
0:52:47 > 0:52:50and then two bedrooms upstairs and one through to the lounge.
0:52:50 > 0:52:53Big plans, indeed. So, how did they get on?
0:52:53 > 0:52:56We return three months later to find out.
0:53:07 > 0:53:10As you can see, Jez and Carolyn have completely overhauled
0:53:10 > 0:53:15the ground floor and it looks brand-new.
0:53:15 > 0:53:18- # You got me feeling brand-new - Ooh!
0:53:18 > 0:53:22- # You got me feeling brand-new - Ooh... #
0:53:22 > 0:53:26The kitchen looks stunning, with slick contemporary fittings.
0:53:26 > 0:53:28It's the same story in the bathroom,
0:53:28 > 0:53:30both finished to an excellent standard.
0:53:33 > 0:53:35This property needed a lot of work
0:53:35 > 0:53:38and it looks like Jez and Carolyn have done just that.
0:53:38 > 0:53:42As planned, the front reception room will now act as a third bedroom
0:53:42 > 0:53:44with the back room used as a sitting room.
0:53:46 > 0:53:50Upstairs, the two bedrooms have again, like the rest of the house,
0:53:50 > 0:53:53been completely gutted and now look fresh, bright, and airy.
0:53:53 > 0:53:56No small job, this.
0:53:58 > 0:53:59It took a while to empty the house.
0:53:59 > 0:54:03As you're probably well aware, it was absolutely full of rubbish.
0:54:03 > 0:54:05So, gutted it, then started stripping it.
0:54:05 > 0:54:06All the doors had to come off.
0:54:06 > 0:54:10Internal doors. Front doors, windows all came out, didn't they?
0:54:10 > 0:54:14We've taken the plaster off, rewired it, re-plastered it.
0:54:14 > 0:54:15New kitchen, new bathroom.
0:54:15 > 0:54:17New radiators, heating system.
0:54:17 > 0:54:20The biggest problem was the smell in the woodwork which was,
0:54:20 > 0:54:23obviously, from a dog or dogs that were kept at the house.
0:54:23 > 0:54:25To get rid of it, we had to get rid of floorboards,
0:54:25 > 0:54:31take the half the staircase down, dig down and rebuild upwards again.
0:54:31 > 0:54:33Well, that was worse than they thought it was going to be
0:54:33 > 0:54:35but, thankfully, the hole in the ceiling
0:54:35 > 0:54:38turned out to be better than expected.
0:54:38 > 0:54:40It wasn't a hole in the ceiling, thank God.
0:54:40 > 0:54:44They put sheets up to catch the Artex falling down.
0:54:44 > 0:54:46The ceiling was in perfect condition.
0:54:46 > 0:54:48Obviously, the roof wasn't leaking.
0:54:48 > 0:54:51The roof is in good condition. So it did save as a lot of money.
0:54:51 > 0:54:54At least they had one nice surprise from this house.
0:54:54 > 0:54:57So, who's responsible for all the hard work?
0:54:57 > 0:55:00Electrical work came under myself and the two boys.
0:55:00 > 0:55:02Once that was done, a plasterer did the whole house.
0:55:02 > 0:55:04New ceilings, new walls everywhere.
0:55:04 > 0:55:07We had kitchen fitters in doing the kitchen and bathroom
0:55:07 > 0:55:09and we had a plumber in doing the central heating.
0:55:09 > 0:55:12The boys were great. Couldn't have done it without them.
0:55:12 > 0:55:14Simon and Dominic, both electrical apprentices,
0:55:14 > 0:55:17both want to get stuck in to property market when they're older.
0:55:17 > 0:55:19I couldn't have done it on my own.
0:55:19 > 0:55:21It's very much a three-way job, it's been.
0:55:21 > 0:55:24And I'd say a job well done.
0:55:24 > 0:55:27Intending to rent out to students, Jez and Carolyn
0:55:27 > 0:55:30managed to keep to their strict timescale of three months,
0:55:30 > 0:55:32Just in time for the beginning of term,
0:55:32 > 0:55:34but how did the budget stand up?
0:55:34 > 0:55:37We've gone over budget, probably, by about 6,000, in total.
0:55:37 > 0:55:42I was looking at about 15,000, maybe 16,000, as Carolyn, originally said.
0:55:42 > 0:55:46- I was looking at 17. - Was it 17? Sorry.- And a bit more.
0:55:46 > 0:55:49- And it got a bit more.- But we've got a standard we wanted to work to,
0:55:49 > 0:55:50we've worked to the standard,
0:55:50 > 0:55:54and we had a few problems to overcome during the process, so...
0:55:55 > 0:55:58So, they went a little over budget, spending 22 grand on the renovation,
0:55:58 > 0:56:03bringing their total spend on this property to around £67,000.
0:56:05 > 0:56:09It still seems like a good investment to me
0:56:09 > 0:56:11but will two local estate agents agree?
0:56:11 > 0:56:14Let's start with the one who saw it first.
0:56:14 > 0:56:16I'm particularly impressed with the level of finish,
0:56:16 > 0:56:19especially with the kitchen and the bathroom,
0:56:19 > 0:56:20compared to what it was like before.
0:56:20 > 0:56:23I think that the current owners have done a fantastic job
0:56:23 > 0:56:25in making the most of the current layout.
0:56:25 > 0:56:29My first impressions coming into the property, it's very well presented.
0:56:29 > 0:56:31Beautifully decorated.
0:56:31 > 0:56:34Nice neutral colours with a good, strong colour carpet.
0:56:34 > 0:56:36Really impressed.
0:56:36 > 0:56:40So, on to valuations. Let's start with sales.
0:56:40 > 0:56:43For the sales market, I think this property would look to achieve
0:56:43 > 0:56:46around £65,000.
0:56:46 > 0:56:50The sales figure for this property would be in the region of £75,000.
0:56:50 > 0:56:53We thought 70,000, due to other houses up the road
0:56:53 > 0:56:54that have been for sale.
0:56:54 > 0:56:56Obviously, haven't been done out like this,
0:56:56 > 0:56:57but are on the market for 70,000.
0:56:57 > 0:57:00So, we knew the top price would be around the £70,000 mark.
0:57:02 > 0:57:06That top valuation of £75,000 would mean a potential pre-tax profit
0:57:06 > 0:57:10of eight grand on their £67,000 spend.
0:57:10 > 0:57:13But Jez and Carolyn are looking to rent to students.
0:57:13 > 0:57:16So, what will they get in that market currently?
0:57:16 > 0:57:18As a three-bed student let,
0:57:18 > 0:57:21I think that this property will look to achieve a figure
0:57:21 > 0:57:23in the region of £720 per calendar month.
0:57:23 > 0:57:26As a student-rented property, three bedrooms,
0:57:26 > 0:57:30it would achieve around £780 per calendar month.
0:57:30 > 0:57:36That's about what we figured, wasn't it? About £240 a month per student.
0:57:36 > 0:57:37That's what we worked on. So, yeah.
0:57:37 > 0:57:40- That's about right, isn't it? - Yeah. Happy with that.
0:57:40 > 0:57:45That £240 per calendar month per room is the lower valuation
0:57:45 > 0:57:49and would still mean a really good yield of nearly 13%.
0:57:49 > 0:57:53The good news is, the couple have already got tenants lined up.
0:57:53 > 0:57:56They plan to take on another property soon.
0:57:56 > 0:57:57I wonder if they'll have a new rule
0:57:57 > 0:58:00when they go to the auction house next time?
0:58:00 > 0:58:02Review it this time first.
0:58:02 > 0:58:03HE CHUCKLES
0:58:07 > 0:58:10Well, we hope you enjoyed seeing what the buyers did on today's show.
0:58:10 > 0:58:12There are many more auctions and properties out there.
0:58:12 > 0:58:15You'll see many more here on Homes Under The Hammer.
0:58:15 > 0:58:16- Goodbye.- Goodbye.