0:00:02 > 0:00:03Hello. Now, property bargains are out there,
0:00:03 > 0:00:06but they can be easier to track down some areas rather than others.
0:00:06 > 0:00:09But if you are interested in property in your local area,
0:00:09 > 0:00:10I know somewhere you can go.
0:00:10 > 0:00:15Yeah, get yourself organised and pop down to your local property auction.
0:00:40 > 0:00:42Auction buyers could have a few thousand to spend,
0:00:42 > 0:00:44or could have a few million.
0:00:44 > 0:00:46Yeah, no matter what their budget is,
0:00:46 > 0:00:48they're always on the lookout for a good deal.
0:00:48 > 0:00:52So, did today's buyers manage to find one? Here's what they bought.
0:00:53 > 0:00:56This two-bed terraced house in east London needs
0:00:56 > 0:00:59a bit of work inside and out.
0:00:59 > 0:01:01It's a jungle out there.
0:01:03 > 0:01:07But size is the issue with this one-bed flat in Hertfordshire.
0:01:07 > 0:01:10You've just got a little cardboard door and you can hear everything.
0:01:10 > 0:01:13I mean, that really is how small the flat is.
0:01:13 > 0:01:17And in Wellington, it's a case of buyer beware.
0:01:17 > 0:01:20I've really just opened this to demonstrate one thing...
0:01:20 > 0:01:23- DOG BARKS - ..and it's that.
0:01:24 > 0:01:26All of these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:33You bought it, sir. Well done.
0:01:37 > 0:01:40I'm in Plaistow in the London Borough of Newham
0:01:40 > 0:01:43which lies just south of West Ham.
0:01:43 > 0:01:46During World War II, this area suffered in the Blitz,
0:01:46 > 0:01:49which explains why so many of the buildings are relatively new,
0:01:49 > 0:01:52but a few of the older ones have survived.
0:01:52 > 0:01:56# I'm still standing better than I ever did
0:01:56 > 0:01:59# Looking like a true survivor... #
0:01:59 > 0:02:03The property I am here to see is a 15-minute walk from Canning tube.
0:02:03 > 0:02:06Here it is. Now, I do like a good start on a property.
0:02:06 > 0:02:08Brand-new windows.
0:02:08 > 0:02:10It's a two-bed mid-terrace property with a guide
0:02:10 > 0:02:13price of £195,000.
0:02:13 > 0:02:14Let's take a look.
0:02:18 > 0:02:20OK, small hallway.
0:02:20 > 0:02:24Some old fuse boxes there.
0:02:24 > 0:02:26Quite high ceiling, though.
0:02:26 > 0:02:28Front room here with an old-fashioned fireplace.
0:02:28 > 0:02:32That'd need some work. Just a bit of a tidy-up in there.
0:02:32 > 0:02:34Stairs going to the bedrooms.
0:02:34 > 0:02:38Into this lovely yellow back room
0:02:38 > 0:02:42which looks like it could have been the kitchen. There's a sink there.
0:02:42 > 0:02:44There's not much else here. A bit of a unit just over there.
0:02:44 > 0:02:48There's a lot of damp that I see on the ceilings, as well,
0:02:48 > 0:02:53but this here, this old-fashioned fireplace with a fire which
0:02:53 > 0:02:54has just been put in place of that.
0:02:54 > 0:02:57It's a bit ugly, but you could restore that
0:02:57 > 0:02:58to make it pretty again.
0:02:58 > 0:03:00A little bit of work to be done in here,
0:03:00 > 0:03:04but I am already thinking that sink might have to go into a room
0:03:04 > 0:03:07I can see through there which is definitely the kitchen.
0:03:09 > 0:03:10Through into the kitchen.
0:03:10 > 0:03:13But it's not a kitchen, it's a bathroom.
0:03:13 > 0:03:15I wasn't expecting that. Kind of threw me a bit.
0:03:15 > 0:03:18Your bath is here, you've got a sink over there.
0:03:18 > 0:03:21And then this little area here you've got a toilet.
0:03:21 > 0:03:24Now, the ideal scenario for me is to get the kitchen into here,
0:03:24 > 0:03:28get that as another spare room downstairs,
0:03:28 > 0:03:31take this bathroom upstairs next-door to the bedrooms.
0:03:31 > 0:03:33That would be a perfect scenario.
0:03:33 > 0:03:35Now, I'm not sure.
0:03:35 > 0:03:37I suppose that's supposed to be the back garden, but...
0:03:40 > 0:03:43It's a jungle out there.
0:03:43 > 0:03:45# It's like a jungle sometimes
0:03:45 > 0:03:47# It makes me wonder how I keep from going under. #
0:03:49 > 0:03:53French doors from a bathroom is a first for me.
0:03:53 > 0:03:54This bathroom is crumbling.
0:03:54 > 0:03:56The garden is completely overgrown.
0:03:56 > 0:03:58This house doesn't need TLC,
0:03:58 > 0:04:01it needs ER - emergency repairs.
0:04:02 > 0:04:04Upstairs to the two bedrooms.
0:04:04 > 0:04:09Firstly, I can see these lovely very small saloon doors.
0:04:09 > 0:04:11I'm pretty sure that's a wrong measurement there.
0:04:11 > 0:04:14Into the first bedroom which is of a nice size.
0:04:14 > 0:04:17It's quite big up here with this lovely pony wallpaper.
0:04:17 > 0:04:19Not really my taste.
0:04:19 > 0:04:21Two big windows which look brand-new,
0:04:21 > 0:04:24so they could stay and that would help with the budget.
0:04:24 > 0:04:25And an old-fashioned fireplace
0:04:25 > 0:04:28which would look nice restored.
0:04:28 > 0:04:30Possibly a bit of a walk-in wardrobe there.
0:04:30 > 0:04:32Or is it? Stay there.
0:04:32 > 0:04:34Yes, on the way, on the way,
0:04:34 > 0:04:37on the way to this walk-in wardrobe which is here,
0:04:37 > 0:04:39which obviously isn't a walk-in wardrobe.
0:04:39 > 0:04:40It's just a walk through.
0:04:40 > 0:04:43Now, as I said in the kitchen, I'd like to bring the bathroom
0:04:43 > 0:04:46upstairs, but there's not enough room for a bath.
0:04:46 > 0:04:47So what I would do,
0:04:47 > 0:04:52shower room in there, toilet, sink, perfect.
0:04:52 > 0:04:54Bathroom upstairs sorted.
0:04:54 > 0:04:59The second bedroom is a reasonable size and it also has new windows.
0:04:59 > 0:05:02It's really weird that the windows are the only newish thing
0:05:02 > 0:05:04in the whole house.
0:05:04 > 0:05:05Still, at least, it's a start
0:05:05 > 0:05:08because this house needs the works.
0:05:08 > 0:05:12Electrics, plumbing, moving the kitchen and bathroom,
0:05:12 > 0:05:15central heating, fireplaces, plastering, decorating.
0:05:15 > 0:05:18It is far from purr-fect.
0:05:18 > 0:05:21And at that guide price of £195,000,
0:05:21 > 0:05:24you might need deep pockets for this one.
0:05:24 > 0:05:26What does a local estate agent think?
0:05:26 > 0:05:30First impressions, it's a good size as a two-bedroom house,
0:05:30 > 0:05:32but it does need quite a considerable amount of work.
0:05:32 > 0:05:35There is a possibility you could bring the bathroom upstairs,
0:05:35 > 0:05:38but then you would be cutting into the bedrooms,
0:05:38 > 0:05:40making some of the bedrooms smaller than they originally are.
0:05:42 > 0:05:44OK, good point, but personally,
0:05:44 > 0:05:47I still think a bathroom upstairs is always better.
0:05:47 > 0:05:50Anyway, what does he think could be achieved here rental wise
0:05:50 > 0:05:53once it's all renovated?
0:05:53 > 0:05:55If this property was renovated, you can achieve
0:05:55 > 0:05:58anything from £1,250 per calendar month
0:05:58 > 0:06:02to £1,350 per calendar month.
0:06:02 > 0:06:03And resell valuations?
0:06:03 > 0:06:06Sales wise, if this property was renovated, you can
0:06:06 > 0:06:11achieve anything from £260,000 to £270,000.
0:06:13 > 0:06:14So this is a good, solid property.
0:06:14 > 0:06:17Only a 15 minute walk away from Canning Town tube,
0:06:17 > 0:06:20but there are a few issues to overcome.
0:06:20 > 0:06:24The shower room, the kitchen, and that jungle/garden.
0:06:24 > 0:06:27It is going to take more than a lawnmower to sort that.
0:06:27 > 0:06:29Who fancied the challenge when it went to auction?
0:06:31 > 0:06:35Two-bedroom mid-terrace house. Who would like to kick off on this?
0:06:35 > 0:06:37I don't know, 195?
0:06:37 > 0:06:40195. 200.
0:06:41 > 0:06:43200 anywhere?
0:06:43 > 0:06:45200 with you.
0:06:45 > 0:06:47205.
0:06:47 > 0:06:50210, new spot, right at the back. 210.
0:06:50 > 0:06:53215. 217, yeah? 217.
0:06:53 > 0:06:55Two...
0:06:57 > 0:07:00218. 219.
0:07:03 > 0:07:05220.
0:07:06 > 0:07:10No? £219,000. Anyone else?
0:07:12 > 0:07:15220 in the front. 221 at the back.
0:07:16 > 0:07:18221.
0:07:18 > 0:07:21First bid. 220, sitting down.
0:07:21 > 0:07:23Against you, first time.
0:07:23 > 0:07:26Second time. Third and last time, are we all done?
0:07:28 > 0:07:31Sold, 220, first bid, well done.
0:07:33 > 0:07:37Jumping in with the successful bid of £220,000 was husband
0:07:37 > 0:07:39and wife team Sue and Ray.
0:07:40 > 0:07:42MUSIC: Once Is Enough by Elvis Presley
0:07:44 > 0:07:46Ray is a builder and Sue is a part-time chef,
0:07:46 > 0:07:49and this was their first time at auction.
0:07:49 > 0:07:52I met them back at the property to find out their plans.
0:07:53 > 0:07:57- Ray...Sue.- Dion.- Nice to meet you both.- Hi.
0:07:57 > 0:07:59Congratulations, first and foremost.
0:07:59 > 0:08:02Tell me about the auction experience. How was it?
0:08:02 > 0:08:05Nerve-racking, it was nerve-racking.
0:08:05 > 0:08:07I had never been to an auction before,
0:08:07 > 0:08:09so this was the first one I had been to.
0:08:09 > 0:08:11And we had done an awful lot of preparation,
0:08:11 > 0:08:14and when we got to the auction, that all flew out of the window.
0:08:14 > 0:08:16Why's that? Why did it fly out of the window?
0:08:16 > 0:08:19Well, we'd researched extensively the properties
0:08:19 > 0:08:20that we were interested in.
0:08:20 > 0:08:23We'd been to see them, we'd looked at all the legal
0:08:23 > 0:08:26documents, we'd done everything that you were meant to do.
0:08:26 > 0:08:30And then by lot 20, it was apparent
0:08:30 > 0:08:33that these guide prices were totally
0:08:33 > 0:08:37wrong and they were going for 30 or £40,000 more than we could afford.
0:08:37 > 0:08:38So we bought...
0:08:38 > 0:08:40I bought a house that I had never seen,
0:08:40 > 0:08:44or even checked the legal documents, which was very stupid.
0:08:44 > 0:08:47The hammer rules. The hammer rules. You broke both of them.
0:08:47 > 0:08:51- We did, we broke everything.- You didn't see the property.- No, no.
0:08:51 > 0:08:53Happy with that? DION LAUGHS
0:08:53 > 0:08:56No, at the time I wasn't, I was trying to pull her arm down and say,
0:08:56 > 0:08:57"We haven't seen that one."
0:08:57 > 0:09:00- But there you go. - The thing is, it was too late.
0:09:00 > 0:09:03It happened instantly and there wasn't...
0:09:03 > 0:09:05We'd done it. I'd done it, rather.
0:09:05 > 0:09:08- So what made you actually go for this one?- This one?
0:09:08 > 0:09:11Yeah, because did you know about the houses, you know, the area?
0:09:11 > 0:09:16Yeah, I mean, to be truthful, I know the area well.
0:09:16 > 0:09:22It looked like a really lovely little Victorian house,
0:09:22 > 0:09:27needed loads of work doing to it, and it was just impulse, really.
0:09:27 > 0:09:31I thought that we could make something out of it.
0:09:31 > 0:09:35So you had seen the potential just from the auction. Can you
0:09:35 > 0:09:38still see the potential? Yeah, I can, actually, I can. Definitely.
0:09:38 > 0:09:39I mean, obviously,
0:09:39 > 0:09:42when we saw it at the auction we just saw the front of the house.
0:09:42 > 0:09:44We didn't see the inside,
0:09:44 > 0:09:48but it just seemed like a good price for this area.
0:09:48 > 0:09:50Was there a little bit of,
0:09:50 > 0:09:53"I know I've got Ray, who's a builder..."
0:09:53 > 0:09:56Oh, yeah. That's it, exactly.
0:09:56 > 0:09:58Yeah, couldn't have done it otherwise.
0:09:58 > 0:10:01I mean, there's no way that you could buy this property,
0:10:01 > 0:10:04I don't think, and then get a builder in, pay a builder
0:10:04 > 0:10:08and then make a profit out of it. I don't think that would work.
0:10:08 > 0:10:10And expect it to be done how you want it to be done, to your spec,
0:10:10 > 0:10:12and keep it within that budget?
0:10:12 > 0:10:14That wouldn't happen.
0:10:14 > 0:10:18But now you've got this man here, who's going to take the reins.
0:10:18 > 0:10:21Or maybe not take the reins, judging by that look.
0:10:21 > 0:10:24Yeah, he's going to do what he's told. Aren't you, Ray?
0:10:24 > 0:10:26Absolutely, yeah.
0:10:26 > 0:10:28# Yes sir no sir
0:10:28 > 0:10:31# Where do I go sir?
0:10:31 > 0:10:33# What do I do sir?
0:10:33 > 0:10:35# What do I say...? #
0:10:35 > 0:10:38Well, at least Ray knows where he stands.
0:10:38 > 0:10:39And with plenty of experience,
0:10:39 > 0:10:42this place doesn't worry him one little bit.
0:10:42 > 0:10:44A lot of what we see here is superficial.
0:10:44 > 0:10:47You know, bits of paper hanging off. The place is pretty sound.
0:10:47 > 0:10:52You know, so just move a few things around, knock a few walls down.
0:10:52 > 0:10:53Stick a staircase in.
0:10:53 > 0:10:57And we should have ourselves a really nice, top of the range,
0:10:57 > 0:11:00- spacious property.- The challenge is upstairs.
0:11:00 > 0:11:02The challenge is upstairs
0:11:02 > 0:11:05because obviously we're going to move the bathroom upstairs.
0:11:05 > 0:11:08We're going to get an architect in, a friend of ours,
0:11:08 > 0:11:11an architect who's going to come in and do some drawings,
0:11:11 > 0:11:14because we'd like to play around with the space, move the staircase,
0:11:14 > 0:11:18and see if we can potentially put three bedrooms upstairs.
0:11:18 > 0:11:20Probably not, but we just want to see.
0:11:20 > 0:11:22How long is it going to take you?
0:11:22 > 0:11:25Ray, I'll ask you that question, as you'll be doing the work.
0:11:25 > 0:11:27Or how long do you hope it to take you?
0:11:27 > 0:11:30Yeah, I would say, once we get started about three months.
0:11:30 > 0:11:32So within that you've got to do knocking down walls
0:11:32 > 0:11:35and a back garden that you can't quite see into yet?
0:11:35 > 0:11:37Absolutely, yeah.
0:11:37 > 0:11:40There could be an Amazonian tribe in there.
0:11:40 > 0:11:44Once again, you know, by the time you have carved through
0:11:44 > 0:11:47the garden, bit of landscaping out there, it's only a small garden
0:11:47 > 0:11:50so it's not going to be masses of landscaping.
0:11:50 > 0:11:53Yeah, and as I say, I'm a builder, so I've got
0:11:53 > 0:11:57a team of guys that will come in here and just get it all done.
0:11:57 > 0:11:59What about the budget?
0:11:59 > 0:12:03Well, we've got a very definite budget, a top end budget of £40,000.
0:12:03 > 0:12:08So we haven't got any more money so we've got to stick to that budget.
0:12:08 > 0:12:09- So the pressure's on?- Absolutely.
0:12:09 > 0:12:11We think that's feasible, though.
0:12:11 > 0:12:13That's not unrealistic.
0:12:13 > 0:12:18Bearing in mind the earlier sales valuation of £260-270,000,
0:12:18 > 0:12:23even if Sue and Ray stick to that 40 grand budget, it leaves them no room
0:12:23 > 0:12:27for error if they plan to make a profit when it comes to selling on.
0:12:27 > 0:12:29And profit is important.
0:12:29 > 0:12:32Sue's father recently moved into a nursing home and
0:12:32 > 0:12:35they hope to offset those costs with the profit made from this project.
0:12:37 > 0:12:38Sue, I wish you all the best.
0:12:38 > 0:12:40- Thank you very much.- Hope it goes well for you.
0:12:40 > 0:12:43- Ray, good luck being shouted at, sir.- Thank you.
0:12:46 > 0:12:48Sue and Ray, what a great couple.
0:12:48 > 0:12:51Very enthusiastic, but it's clear to see who wears the trousers.
0:12:51 > 0:12:53That'll be Sue.
0:12:53 > 0:12:55But anyway, on the building side of things,
0:12:55 > 0:12:57Ray seems to have all his bases covered.
0:12:57 > 0:13:00Now, Tony, his son, will be doing most of the plumbing,
0:13:00 > 0:13:04but will they stay within that budget and that timescale?
0:13:04 > 0:13:06You can find out later in the programme.
0:13:10 > 0:13:13I'm in the small Hertfordshire town of Hoddesdon,
0:13:13 > 0:13:16about 20 miles north of central London.
0:13:16 > 0:13:18The town began as a coach stop for travellers
0:13:18 > 0:13:21heading from the capital out to Cambridge.
0:13:25 > 0:13:30In the 20th century, gravel was extracted in huge quantities from
0:13:30 > 0:13:34nearby pits to supply the massive expansion of the road network.
0:13:34 > 0:13:37But today, I am in this estate to visit a property
0:13:37 > 0:13:41up for auction at a guide price of 110,000.
0:13:43 > 0:13:46So what does the guide price of £110,000 buy you at auction
0:13:46 > 0:13:48in this spot, which is only a
0:13:48 > 0:13:51five-minute walk from the town centre?
0:13:51 > 0:13:55Well, you get a one-bedroom flat in this purpose-built block here.
0:13:55 > 0:13:57Now, it really does look well-kept from the outside.
0:13:57 > 0:14:00You've got plenty of parking over there,
0:14:00 > 0:14:02but I'm not going to dwell on that for too long
0:14:02 > 0:14:05because it's up on the second floor and I'm going to get going.
0:14:08 > 0:14:11The upkeep of the communal areas is usually
0:14:11 > 0:14:13the responsibility of a property maintenance company,
0:14:13 > 0:14:16who will charge an annual fee for this work.
0:14:16 > 0:14:19And they may also take care of organising things,
0:14:19 > 0:14:22like roof repairs, guttering, and drainage, which saves you
0:14:22 > 0:14:26the hassle of knocking on doors to get money from your neighbours.
0:14:27 > 0:14:30So inside the flat, bathroom straight ahead, which is
0:14:30 > 0:14:32actually quite nicely done.
0:14:32 > 0:14:35And then in the flat, surprisingly small,
0:14:35 > 0:14:39so this is the living room and straight off the living room
0:14:39 > 0:14:42is the bedroom and you can imagine at night you've got
0:14:42 > 0:14:45the telly on and someone's trying to get to sleep in here and
0:14:45 > 0:14:48you've just got a little cardboard door and you can hear everything.
0:14:48 > 0:14:51I mean, that really is how small the flat is.
0:14:51 > 0:14:54You've got textured ceilings in here as well and you could
0:14:54 > 0:14:57probably do with painting it, and replacing the floor,
0:14:57 > 0:14:59so a little bit of work to do and then you've literally got
0:14:59 > 0:15:03the kitchen just here and again, I mean, it's incredibly small,
0:15:03 > 0:15:07but I think that will need updating, so you could spend some pennies
0:15:07 > 0:15:10on this property and it would certainly bring it up to standard.
0:15:11 > 0:15:14So, you might not be getting any character with a flat like this
0:15:14 > 0:15:17and the lack of space won't be to everybody's liking,
0:15:17 > 0:15:19but it's a clean and tidy modern building
0:15:19 > 0:15:23and the location is ideal for commuting into London.
0:15:23 > 0:15:28You know, for that guide price of 110,000,
0:15:28 > 0:15:30well, some might consider it a bargain.
0:15:32 > 0:15:36So, it needs a new kitchen, a lick of paint, central heating,
0:15:36 > 0:15:38and it needs something else.
0:15:38 > 0:15:40Can you guess what that is?
0:15:40 > 0:15:42It's a longer lease.
0:15:42 > 0:15:45Yes, currently there's only 75 years left unexpired
0:15:45 > 0:15:48and although that's not too short just yet,
0:15:48 > 0:15:52due to something called marriage value, the cost of extending
0:15:52 > 0:15:56it will only get more expensive as it gets shorter.
0:15:56 > 0:15:59I happen to know this is prime first-time buyer territory
0:15:59 > 0:16:02and if you want to sell this on, a longer lease will make it
0:16:02 > 0:16:06so much easier and it will add value, too.
0:16:08 > 0:16:11But will this gentleman agree with me?
0:16:11 > 0:16:14He's as local estate agent and he's come to have a look
0:16:14 > 0:16:17at this flat to give us his professional opinion.
0:16:18 > 0:16:22The flat is just really in need of a full redecoration
0:16:22 > 0:16:25and perhaps some new flooring throughout.
0:16:25 > 0:16:26Nothing more than that.
0:16:26 > 0:16:29The windows are all UPVC double glazed.
0:16:29 > 0:16:31The kitchen and bathroom are absolutely fine.
0:16:31 > 0:16:33The size of the property, they're not the largest.
0:16:33 > 0:16:35As they were originally designed,
0:16:35 > 0:16:40quite strange because you had the bedroom open plan onto the kitchen,
0:16:40 > 0:16:42but subsequently, over the years,
0:16:42 > 0:16:46people have concealed the entrance from the bedroom into the kitchen
0:16:46 > 0:16:48and made the opening onto the living room,
0:16:48 > 0:16:50which is much more practical now.
0:16:52 > 0:16:55So, assuming the new owner obtains an extension to the lease,
0:16:55 > 0:16:59what could this flat be worth on the resale and rental market?
0:16:59 > 0:17:01Once the property's refurbished,
0:17:01 > 0:17:06I would anticipate a valuation of being £132,000-135,000.
0:17:06 > 0:17:10On the rental market, I would expect to achieve £750 per calendar month.
0:17:12 > 0:17:16Well, it might be small, but there's not too much work to do here
0:17:16 > 0:17:20and being so close to the town centre, well, I think this could be
0:17:20 > 0:17:25a great buy-to-let or maybe even the perfect first-time buyer home.
0:17:25 > 0:17:28Who saw the potential? Let's head to auction and find out.
0:17:30 > 0:17:33Interesting flat, this. Second-floor self-contained flat.
0:17:33 > 0:17:35Nice modern-looking building.
0:17:35 > 0:17:37Where do we want to be on this?
0:17:37 > 0:17:40Let's go 100 and see where we end up, shall we? 100 is here.
0:17:40 > 0:17:42Is that 102, can I say?
0:17:42 > 0:17:43I can, thank you. 104.
0:17:43 > 0:17:45106, 108.
0:17:45 > 0:17:48107, then. 108.
0:17:48 > 0:17:49109, 110.
0:17:49 > 0:17:52Looks a cheap flat, this. Got you.
0:17:52 > 0:17:55Thank you. 111. 112. 113.
0:17:55 > 0:17:59113, he was first. 114, 115, 116.
0:17:59 > 0:18:03Stood over here now at £115,000.
0:18:03 > 0:18:05116. Do you want to come back in?
0:18:05 > 0:18:08I'll take 115,500. 116.
0:18:09 > 0:18:11I took 500 from him. Can you lose it for 500?
0:18:11 > 0:18:13You can't. 116. And a half again.
0:18:15 > 0:18:19Yours on my... Yes, 116,500. 117.
0:18:19 > 0:18:21No? You sure?
0:18:21 > 0:18:23Can't buy it in a few moments' time.
0:18:23 > 0:18:26It's going now at 116,500 once.
0:18:26 > 0:18:28Twice at 116,500.
0:18:28 > 0:18:30Third and final time.
0:18:30 > 0:18:33Bidder 1173.
0:18:33 > 0:18:36Making that successful bid was Kevin
0:18:36 > 0:18:38who works for Transport for London by day,
0:18:38 > 0:18:41but also owns a few buy-to-let properties.
0:18:41 > 0:18:44I met up with him back at the flat for a bit of a chinwag.
0:18:46 > 0:18:48- Kevin, congratulations.- Thank you.
0:18:48 > 0:18:50So, why did you want to buy this property?
0:18:50 > 0:18:52- Just the potential.- Yeah.
0:18:52 > 0:18:54There was good potential in this property.
0:18:54 > 0:18:55I don't know the area very well,
0:18:55 > 0:19:00but I just heard about it and the rental yields are very good.
0:19:00 > 0:19:02You don't know the area?
0:19:02 > 0:19:04Did you literally just have a flick through the catalogue
0:19:04 > 0:19:07- and the price was right for you? - Yeah, pretty much.
0:19:07 > 0:19:08The price was good
0:19:08 > 0:19:11and it was a few properties in that auction that I went for.
0:19:11 > 0:19:14This one was one of the early lots,
0:19:14 > 0:19:16so it went at the right price, and that was it.
0:19:16 > 0:19:18Did you view the property?
0:19:18 > 0:19:19Uh, no.
0:19:19 > 0:19:21So, you didn't view the property?!
0:19:21 > 0:19:24- No, I didn't.- You were literally going on the price?
0:19:24 > 0:19:27I done research, a lot of research.
0:19:27 > 0:19:29And I saw a few photos, and I did come here
0:19:29 > 0:19:32and I looked through the letterbox and I think that was enough.
0:19:34 > 0:19:37Kevin might be happy with a quick peek through the letterbox,
0:19:37 > 0:19:40but, dear viewer, this procedure is not recommended
0:19:40 > 0:19:42by Homes Under The Hammer.
0:19:42 > 0:19:43Get a proper viewing!
0:19:46 > 0:19:49# We're always on the outside
0:19:49 > 0:19:54# On the outside Always looking in. #
0:19:54 > 0:19:56I mean, what if you'd have opened the door
0:19:56 > 0:19:59and it could have been, you know, a burnt-out property.
0:19:59 > 0:20:01There could have been leaks and damp and all sorts.
0:20:01 > 0:20:04The price. You know, it was cheap enough,
0:20:04 > 0:20:08so I had enough contingency plans so if it did...
0:20:08 > 0:20:10If it was as bad as that, you know,
0:20:10 > 0:20:12I've got a few grand leftover to spend on it.
0:20:12 > 0:20:13So, come on, be honest.
0:20:13 > 0:20:16When you opened the front door and you walked in, how did you feel?
0:20:16 > 0:20:17Relieved?
0:20:17 > 0:20:18Kind of, yeah. Fantastic.
0:20:18 > 0:20:21When I came in and saw, wow, nothing needs to be done.
0:20:21 > 0:20:23So, yeah, it was very good.
0:20:23 > 0:20:25Now, there's no central heating in this flat.
0:20:25 > 0:20:27That could pose a problem.
0:20:27 > 0:20:29Not necessarily.
0:20:29 > 0:20:31I've done some quotations.
0:20:31 > 0:20:34Probably about £1,000 to fit a central heating.
0:20:34 > 0:20:36What about things like the kitchen and the bathroom?
0:20:36 > 0:20:38Do you feel they need updating?
0:20:38 > 0:20:40Kitchen for sure.
0:20:40 > 0:20:42Bathroom, I don't think so.
0:20:42 > 0:20:47Just a general tidy up and cleaning and painting. That's pretty much it.
0:20:49 > 0:20:52Kevin has set out a straightforward plan of renovation
0:20:52 > 0:20:55and has a budget of around five grand.
0:20:55 > 0:20:57He hopes to be finished within 4-6 weeks
0:20:57 > 0:21:00and then he'll choose between reselling or renting.
0:21:00 > 0:21:03But has he given any thought to that lease?
0:21:05 > 0:21:08I spoke to two neighbours, they recently...
0:21:08 > 0:21:10I read the legal pack, found out which neighbours
0:21:10 > 0:21:13have recently have done their lease, so I spoke to them.
0:21:13 > 0:21:15The lease is 75 years.
0:21:15 > 0:21:17For the extension they will do it straight away.
0:21:17 > 0:21:20And that is probably about seven to eight grand to do the lease.
0:21:20 > 0:21:23- That's quite a chunk of money, isn't it?- It is, yeah.
0:21:23 > 0:21:25But I heard a maximum limit on my budget
0:21:25 > 0:21:27and how much I'd buy the property
0:21:27 > 0:21:29and how much the lease and renovations.
0:21:29 > 0:21:31So I think it's a good investment.
0:21:33 > 0:21:34After a bit of a shaky start,
0:21:34 > 0:21:38Kevin has redeemed himself by doing some great research on the lease.
0:21:38 > 0:21:41It might sound obvious, but talking to neighbours is a good
0:21:41 > 0:21:45way of getting useful local information, and it's free.
0:21:45 > 0:21:49Kevin's using experience gained over the past few years.
0:21:51 > 0:21:54In 2012, I bought my first property in auction
0:21:54 > 0:21:58and I remortgaged 2013, purchased another one,
0:21:58 > 0:22:01and then that's it. That's the third one.
0:22:01 > 0:22:05- So, this is your third purchase! - It is.- Yay, put it there.
0:22:05 > 0:22:06That's fantastic.
0:22:06 > 0:22:09So, how do you find the time to do this? Because you've got to work.
0:22:09 > 0:22:11I mean, you're working full-time
0:22:11 > 0:22:14and you've got to balance your family life with meeting builders
0:22:14 > 0:22:17and coming onto site. How do you do it, Kevin?
0:22:17 > 0:22:18I have a good wife at home,
0:22:18 > 0:22:21so she helps a lot with a lot of stuff,
0:22:21 > 0:22:23and hard work.
0:22:23 > 0:22:27You just have to get up and get on with it. There is no time to waste.
0:22:27 > 0:22:32I've got a four-year plan, so I'm hoping to stick to it and retire.
0:22:32 > 0:22:36- Not retire, but give up my day job within the next two years.- Really?
0:22:36 > 0:22:40Yes. That's the plan. I hope I can stick to it.
0:22:40 > 0:22:42Who gives you the drive? Why do you do this?
0:22:42 > 0:22:44My family.
0:22:44 > 0:22:46I just want to do good for them
0:22:46 > 0:22:48and make them proud and make them comfortable.
0:22:48 > 0:22:50And what about your kids? How old are they?
0:22:50 > 0:22:53I've got a daughter who's 10 and I've got a little son, he's seven.
0:22:53 > 0:22:55Oh, so you'll get to spend more time with the family, as well.
0:22:55 > 0:22:58That's right. That's the main thing. They're growing up.
0:22:58 > 0:23:00They need their dad at home, so that would be great.
0:23:00 > 0:23:01if I could spend time with them.
0:23:01 > 0:23:04And are you hoping to keep all the properties or to sell them on?
0:23:04 > 0:23:06I have sold one of them.
0:23:06 > 0:23:10That's how I raised the equity for this property.
0:23:10 > 0:23:14This one, I'm not sure what I'm going to do with it at the moment.
0:23:14 > 0:23:19So I'm just first going to do it and see how the market is.
0:23:19 > 0:23:21And if I rent it, that's great.
0:23:21 > 0:23:24Remortgage it or resell it and go back again.
0:23:24 > 0:23:26The options are there, so I have to take.
0:23:26 > 0:23:28Are you feeling confident?
0:23:28 > 0:23:30Very. Absolutely.
0:23:30 > 0:23:31There's nothing in this property.
0:23:31 > 0:23:33I don't think they will be any surprise.
0:23:33 > 0:23:35I'm hoping not, but I don't think there is.
0:23:35 > 0:23:37So, straightforward renovation.
0:23:37 > 0:23:39Well, I'm really, really pleased for you.
0:23:39 > 0:23:41And I'm very happy to say that I know you have learnt
0:23:41 > 0:23:43a lot from watching Homes Under The Hammer.
0:23:43 > 0:23:46- I did, yes.- You're an avid fan! - You started it. Absolutely.
0:23:46 > 0:23:48- Is it our fault?- Yes, it is!
0:23:48 > 0:23:50- But, you know, thank you. It's been great.- Oh!
0:23:50 > 0:23:53I learnt a lot from your programme and that's taken me forward.
0:23:53 > 0:23:56So, who'd have thought, all the years you've been watching
0:23:56 > 0:23:58Homes Under The Hammer, here you are now on the show!
0:23:58 > 0:24:00I know, tell me about it! Yeah, absolutely.
0:24:00 > 0:24:03- It's lovely to have you today. - Thank you.- Thanks for coming.
0:24:03 > 0:24:05Thank you. Pleasure to meet you. Thank you, Lucy.
0:24:06 > 0:24:11Well, Kevin is almost a gold star Homes Under The Hammer pupil, except
0:24:11 > 0:24:15he didn't look inside the flat before the auction. Tut-tut.
0:24:15 > 0:24:18Join me later on in the programme and you can find out
0:24:18 > 0:24:22if this renovation marks his third successful step towards
0:24:22 > 0:24:25a future property developing career.
0:24:25 > 0:24:27Still to come, the buyer of this
0:24:27 > 0:24:30house in Wellington reminds me of someone.
0:24:30 > 0:24:34If there was a Frank Spencer of the property developing world,
0:24:34 > 0:24:36you seem to be it.
0:24:38 > 0:24:40And back in Hoddesdon, Hertfordshire,
0:24:40 > 0:24:44we find out how Kevin got on with his third property renovation.
0:24:49 > 0:24:53Earlier on, I was in Plaistow, just south of West Ham, to see
0:24:53 > 0:24:57a two bed mid terrace guided at £195,000.
0:24:59 > 0:25:02Downstairs, a damp course and rewiring was needed
0:25:02 > 0:25:05and another requirement was a kitchen
0:25:05 > 0:25:08and I thought it should be where the bathroom currently sat
0:25:08 > 0:25:10because French doors off a bathroom...
0:25:10 > 0:25:13Well, that's just not right.
0:25:13 > 0:25:16And upstairs felt like something out of a Western movie.
0:25:16 > 0:25:21First thing I can see, these lovely very small saloon doors.
0:25:21 > 0:25:24I'm pretty sure that's a wrong measurement there.
0:25:24 > 0:25:27Pony wallpaper, not really my taste.
0:25:27 > 0:25:29# Saddle up...
0:25:29 > 0:25:32Possibly, a bit of a walk-in wardrobe there. Or is it?
0:25:32 > 0:25:33Stay there.
0:25:33 > 0:25:36# Saddle up your horse and ride like hell... #
0:25:36 > 0:25:39..All the way to this walk-in wardrobe, which is here.
0:25:39 > 0:25:40So, neigh, to that decor
0:25:40 > 0:25:43and that old stable of Homes Under The Hammer.
0:25:43 > 0:25:46Get a bath in that space upstairs.
0:25:46 > 0:25:52At the auction, Sue and Ray paid £220,000 for it, with a plan to
0:25:52 > 0:25:56renovate, resell and raise cash to cover Sue's dad's nursing home fees.
0:25:56 > 0:26:01But at the auction, it didn't go quite as planned.
0:26:01 > 0:26:04We'd done an awful lot of preparation
0:26:04 > 0:26:07and when we got to the auction, that all flew out the window.
0:26:07 > 0:26:10Why's that? Why did it fall out of the window?
0:26:10 > 0:26:13Well, we'd researched extensively the properties that we were
0:26:13 > 0:26:17interested in. By lot 20, it was apparent that
0:26:17 > 0:26:19these guide prices were totally wrong
0:26:19 > 0:26:23and they were going for 30 or £40,000 more than we could afford.
0:26:23 > 0:26:26So, I bought a house that I'd never seen.
0:26:26 > 0:26:31# You got to look before you leap... #
0:26:31 > 0:26:34Buying blind... Oh, no!
0:26:34 > 0:26:36But they did have the skills.
0:26:36 > 0:26:41Ray's a builder and they have a budget of £40,000.
0:26:41 > 0:26:43They were ready to take the leap.
0:26:43 > 0:26:46# Look before you leap... #
0:26:48 > 0:26:51One year on and we are back to have a look.
0:26:53 > 0:26:56The exterior has been painted and some repairs done.
0:26:58 > 0:27:02But the key here was to make something out of a bad blind
0:27:02 > 0:27:04buying situation and take what they had,
0:27:04 > 0:27:07work together and make something special.
0:27:08 > 0:27:13# We will take the best parts of ourselves
0:27:13 > 0:27:15# And make them gold
0:27:15 > 0:27:17# We are made of our smallest thoughts
0:27:17 > 0:27:20# We are breathing and letting go
0:27:20 > 0:27:25# We will take the best parts of ourselves
0:27:25 > 0:27:28# And make them gold... #
0:27:30 > 0:27:33Downstairs, the damp has gone.
0:27:33 > 0:27:37The decor has been updated and the garden is no longer a jungle.
0:27:37 > 0:27:39And where the bathroom once was,
0:27:39 > 0:27:43there's now a stylish modern kitchen.
0:27:43 > 0:27:47OK, in the kitchen, what we did was actually turn it into a kitchen
0:27:47 > 0:27:52because it was a bathroom, or that's what it was meant to be.
0:27:52 > 0:27:55In this corner, there was a very old bath.
0:27:55 > 0:28:00Here was a concrete dividing wall, which had the toilet in,
0:28:00 > 0:28:02which obviously we knocked down.
0:28:02 > 0:28:06And the most important thing we did was to make it all one level,
0:28:06 > 0:28:12so there was a narrow doorway here with a step down into the kitchen.
0:28:12 > 0:28:16And we've made the floor all level, all one level out to the garden
0:28:16 > 0:28:19because I think that's really important.
0:28:19 > 0:28:23# We will take the best parts of ourselves
0:28:23 > 0:28:26# And make them gold... #
0:28:26 > 0:28:29Upstairs, the horse decor has rode out of town
0:28:29 > 0:28:33and there's now a beautiful new bathroom.
0:28:33 > 0:28:36We moved the bathroom upstairs because people don't want to
0:28:36 > 0:28:39walk through a kitchen to get to the bathroom.
0:28:39 > 0:28:43So, what we did is we increased the soffit over the stairs to come
0:28:43 > 0:28:45out and increase the bathroom.
0:28:45 > 0:28:48And we took a little bit off the main bedroom and a little
0:28:48 > 0:28:52bit off the hallway to get a bathroom in and it worked fine.
0:28:52 > 0:28:55And that's not the only place they've increased the space.
0:28:55 > 0:28:58By removing the chimney breast upstairs,
0:28:58 > 0:29:02they've found room for a third bedroom.
0:29:02 > 0:29:03OK. We debated long
0:29:03 > 0:29:08and hard about whether to make it into a three bedroomed,
0:29:08 > 0:29:11but we decided that this house would appeal to families,
0:29:11 > 0:29:15so we decided to leave it one double bedroom and then
0:29:15 > 0:29:19we took the chimney breast out and we made it into two single bedrooms.
0:29:19 > 0:29:22We already had two windows in that bedroom, so it was quite simple.
0:29:22 > 0:29:25It was a double aspect room.
0:29:25 > 0:29:29We simply put a partition wall up and put another doorway in.
0:29:29 > 0:29:32Sue and Ray have had assistance from an architect friend helping them
0:29:32 > 0:29:35design the upstairs,
0:29:35 > 0:29:39including a corridor between the new bedroom and bathroom.
0:29:39 > 0:29:42Plus their son Tony has done all the plumbing and helped his dad
0:29:42 > 0:29:47out in other areas, like a complete re-plaster and rewire.
0:29:47 > 0:29:50Just as well, because Tony had other projects to do, meaning the
0:29:50 > 0:29:54work only took four months, but lots of gaps with no work in between.
0:29:56 > 0:30:00But they did hit their 40 grand budget head on and plan to
0:30:00 > 0:30:04leave the carpets and decor to the discretion of the buyer.
0:30:04 > 0:30:08They must be delighted with the results.
0:30:08 > 0:30:10It's met every expectation.
0:30:10 > 0:30:13It's so bright and contemporary.
0:30:13 > 0:30:15I'm very pleased with it.
0:30:15 > 0:30:18I think Ray's done an excellent job.
0:30:18 > 0:30:20I agree.
0:30:26 > 0:30:29I agree too, Sue.
0:30:29 > 0:30:33Ray has done a brilliant job, so will Ray's hard work impress
0:30:33 > 0:30:36two local estate agents as much as it's impressed Sue?
0:30:36 > 0:30:39And has adding that third bedroom been a good move?
0:30:41 > 0:30:46In this area, you would find most of the houses having two bedrooms,
0:30:46 > 0:30:48rather than three bedrooms.
0:30:48 > 0:30:51Having three bedrooms instead of two bedrooms,
0:30:51 > 0:30:54it will add of course value to the property,
0:30:54 > 0:30:58but not as much as you would have three double bedrooms.
0:30:58 > 0:31:02By adding a third bedroom, it doesn't necessarily add value,
0:31:02 > 0:31:05but combined with the fact that the property's been completely
0:31:05 > 0:31:08renovated and the current market conditions,
0:31:08 > 0:31:12they definitely will not lose out by having that work carried out.
0:31:12 > 0:31:15Perhaps a third bedroom makes things a little tight for space, but
0:31:15 > 0:31:20it wouldn't be a major undertaking to put it back to two bedrooms.
0:31:20 > 0:31:22Can the couple make a profit
0:31:22 > 0:31:26reselling against their £260,000 spend?
0:31:26 > 0:31:29We would put the property initially on the market with a guide
0:31:29 > 0:31:32price of £350,000 to £370,000.
0:31:32 > 0:31:36I would recommend advertising the property at a price
0:31:36 > 0:31:40between £350,000 and £370,000.
0:31:40 > 0:31:43- Wow, that's amazing. - That's amazing.- That's really good.
0:31:43 > 0:31:47We are absolutely... In fact, give me their telephone number now!
0:31:47 > 0:31:51Yes, I would have thought a potential pre-tax profit
0:31:51 > 0:31:54of £110,000 would make you put an estate agent on speed dial, Sue.
0:31:54 > 0:31:58That money will help go to pay for her dad's nursing home costs,
0:31:58 > 0:32:01so I'm really pleased they'll make a good return
0:32:01 > 0:32:05when it could have been so different, as they bought blind.
0:32:05 > 0:32:07So, Ray, Sue, promise me
0:32:07 > 0:32:11you'll never buy at auction again without viewing?
0:32:13 > 0:32:16- No, never in a million years. - I bet we would.
0:32:16 > 0:32:19- I bet we would, but anyway... - I wouldn't.
0:32:19 > 0:32:21I might buy it if it was his money,
0:32:21 > 0:32:23but I wouldn't if it was my money, that's for sure.
0:32:27 > 0:32:31I'm in Wellington, which sits within Telford in Shropshire.
0:32:31 > 0:32:35Telford was named after the famous Victorian engineer,
0:32:35 > 0:32:40Thomas Telford, but can you tell me who Wellington is named after?
0:32:40 > 0:32:41Anyone?
0:32:41 > 0:32:45Well, if you'd have shouted the Duke of Wellington at your TV,
0:32:45 > 0:32:48- then I'm sorry to say you're wrong. - BLOWS RASPBERRY
0:32:48 > 0:32:52Apparently, it's named after a Germanic Saxon settler, Weola.
0:32:53 > 0:32:56Well, just a short walk from Wellington centre is
0:32:56 > 0:32:58the property I'm here to see.
0:32:58 > 0:33:01On this estate of brick built houses, it's a
0:33:01 > 0:33:04- three bedroom semidetached... - DOG BARKS
0:33:04 > 0:33:07..next-door to a house with a dog by the sound of it,
0:33:07 > 0:33:10£75,000 was the guide price. Let's have a look.
0:33:12 > 0:33:13So, what have we got?
0:33:13 > 0:33:15Well, in case you hadn't guessed, it is
0:33:15 > 0:33:19an ex local authority house, which to my mind is great news.
0:33:19 > 0:33:23Generally really solidly built, nicely proportioned rooms.
0:33:23 > 0:33:25Built to last, they were.
0:33:25 > 0:33:27So through the front door to this room here, which is
0:33:27 > 0:33:30your front sitting room, main living area, I guess.
0:33:30 > 0:33:33I mean, nice features to be discovered.
0:33:33 > 0:33:36A nice fireplace there would be good. Lots of storage.
0:33:36 > 0:33:39That's what you get with these kind of houses, along with solid walls.
0:33:39 > 0:33:42No stud partition there, that's for sure.
0:33:42 > 0:33:45So through into the kitchen.
0:33:45 > 0:33:47Just two rooms really on the downstairs floor.
0:33:47 > 0:33:50Lots of space for family living.
0:33:50 > 0:33:53In terms of the units, well obviously, a bit of time
0:33:53 > 0:33:56and effort needed to replace the kitchen but apart from that,
0:33:56 > 0:33:59I'm just, you know... I'm sold already.
0:34:01 > 0:34:04OK, it's a bit tatty round the edges,
0:34:04 > 0:34:06but there's a good feel to this house so far.
0:34:06 > 0:34:08The double glazing looks pretty sound,
0:34:08 > 0:34:11the radiators appear relatively modern
0:34:11 > 0:34:15and that fireplace provides a good focal point for the living room.
0:34:15 > 0:34:20However, the floral decoration won't be to everyone's taste.
0:34:20 > 0:34:23# You are my flower
0:34:23 > 0:34:27# That's blooming in the mountain so high... #
0:34:27 > 0:34:32So, upstairs and on the way up, that plaster's sounding a bit dicey.
0:34:32 > 0:34:34Looks like the plaster's blown.
0:34:34 > 0:34:38You don't really want to have the extra expense of that.
0:34:38 > 0:34:41It could be a strip off job and start again,
0:34:41 > 0:34:45or it could be just a patch up and make do and mend.
0:34:45 > 0:34:47A good plasterer will sort that out, I'm sure.
0:34:47 > 0:34:51But upstairs here, a little sort of landing and then off it,
0:34:51 > 0:34:54three good size bedrooms. And the bathroom.
0:34:54 > 0:34:57I don't know if this was originally here. My guess is it was.
0:34:57 > 0:34:59Quite an interesting design of the little unit there.
0:34:59 > 0:35:03Basically because it's situated that whole room above the stairs, but you
0:35:03 > 0:35:07know, obviously, it would benefit from a new bathroom in there.
0:35:07 > 0:35:10But it's perfectly serviceable and at least it's upstairs.
0:35:10 > 0:35:12As I said, good sized rooms.
0:35:12 > 0:35:16Again, coming back to the fact that it is that ex local authority.
0:35:16 > 0:35:19And in this bedroom, you have the boiler.
0:35:19 > 0:35:21Now, of course, you'll always hear me
0:35:21 > 0:35:24going on about making sure that any gas appliances are properly
0:35:24 > 0:35:26serviced and if you're a landlord,
0:35:26 > 0:35:29you've got to get yearly a gas safety certificate to make
0:35:29 > 0:35:33sure that things like this are operating properly.
0:35:33 > 0:35:36It's especially important when a boiler is in a bedroom.
0:35:36 > 0:35:39I don't need to point out the dangers of a dodgy
0:35:39 > 0:35:42boiler in a bedroom. So make sure that's checked out,
0:35:42 > 0:35:45if you're buying it for yourself, and if you're a landlord,
0:35:45 > 0:35:47you have to.
0:35:47 > 0:35:52And don't forget, fitting a carbon monoxide alarm is a must as well.
0:35:52 > 0:35:56Never mess with gas. That's the inside taken care of.
0:35:56 > 0:36:00So time to see what this house offers in terms of outdoor space.
0:36:00 > 0:36:01DOG BARKS
0:36:01 > 0:36:05So, there's obviously a rear exit to the property, but this is a side
0:36:05 > 0:36:10door and I've really just opened this to demonstrate one thing.
0:36:10 > 0:36:12- DOG BARKS - And it's that.
0:36:12 > 0:36:15The house is obviously next-door to somebody who has got a dog.
0:36:15 > 0:36:17Now, I am an absolute dog lover.
0:36:17 > 0:36:20I've got two golden retrievers and love them to bits.
0:36:20 > 0:36:23however, living next-door to a house which has a constantly
0:36:23 > 0:36:27woofing dog can cause quite a lot of neighbourly problems
0:36:27 > 0:36:30and it's one of those things that you need to know about
0:36:30 > 0:36:32before you buy an auction property
0:36:32 > 0:36:36and a classic example of why you need to visit the place beforehand.
0:36:36 > 0:36:39You need to notice there is a dog next door and decide
0:36:39 > 0:36:41if that's going to be a problem for you.
0:36:41 > 0:36:43But anyway, at the back of the property,
0:36:43 > 0:36:45we have a really nice size garden.
0:36:45 > 0:36:48Obviously, it needs a bit of tender and loving care.
0:36:48 > 0:36:52But lots of space, nice family home. Yeah, lots of positivity.
0:36:52 > 0:36:55Just needs a kind of soundproof kind of thing to be constructed
0:36:55 > 0:36:58over the top of it.
0:36:58 > 0:37:00Oh, he's quiet now.
0:37:00 > 0:37:03# Sshh... #
0:37:03 > 0:37:06Even with a yappy neighbour, this property has certainly
0:37:06 > 0:37:10set my tail wagging, but it's always good to get a second opinion.
0:37:10 > 0:37:14So we asked an agent from the auction house who sold
0:37:14 > 0:37:18the property to have a look around and tell us what he thought.
0:37:18 > 0:37:21First impressions are generally it's not too bad.
0:37:21 > 0:37:24It wouldn't take much to give it a quick makeover, the boiler's
0:37:24 > 0:37:28quite recent as well, it's been serviced, by the looks of it.
0:37:28 > 0:37:29The double glazing's all fine
0:37:29 > 0:37:32and it's pretty much standard cosmetic attention that it needs.
0:37:32 > 0:37:35I would actually give it the quick once over,
0:37:35 > 0:37:38put on the market for rental. It would go really easy for rents.
0:37:38 > 0:37:41In terms of selling on, I don't think the margins are there
0:37:41 > 0:37:44really, so the safer bet is to rent it.
0:37:44 > 0:37:48So, renting seems the best bet, but what about valuations?
0:37:48 > 0:37:51Once the property has been modernised and refurbished,
0:37:51 > 0:37:55it will probably rent for about £575 per calendar month.
0:37:55 > 0:37:58In terms of selling potential, if the property was given
0:37:58 > 0:38:01a makeover, it would probably fetch about £110,000.
0:38:03 > 0:38:08Well, it's a good solid house that just needs a bit of modernisation.
0:38:08 > 0:38:12Good size rooms and solidly built, so we like that. Who bought it?
0:38:12 > 0:38:16Let's find out, when it went under the hammer.
0:38:16 > 0:38:20It's a three bedroom semidetached house. It is in need of modernising.
0:38:20 > 0:38:23So, lot 61. 70 to get it going.
0:38:23 > 0:38:2670 bid, thank you. At £70,000.
0:38:26 > 0:38:2972, can I see now? At 70. 72.
0:38:29 > 0:38:3274. 76.
0:38:32 > 0:38:35It was a case of standing room only at this auction
0:38:35 > 0:38:39and there were a few bidders interested in this property.
0:38:39 > 0:38:43We rejoin the action with the price at 85,000.
0:38:43 > 0:38:4785 to my left. At 85. 86 anywhere else?
0:38:47 > 0:38:51Bid's at £85,000. You're back in. 86.
0:38:51 > 0:38:5387.
0:38:54 > 0:38:58No? At 87 then. To my left. At 87,000.
0:38:58 > 0:39:0188 anywhere else?
0:39:01 > 0:39:04If not, £87,000 once...
0:39:04 > 0:39:06£87,000 twice...
0:39:06 > 0:39:08New bidder. 88.
0:39:08 > 0:39:1189. 90.
0:39:11 > 0:39:1491. 92. 93. 94.
0:39:14 > 0:39:18At 94, to my right. £94,000.
0:39:18 > 0:39:2095 anywhere else?
0:39:20 > 0:39:23If not, £94,000 once...
0:39:23 > 0:39:26Twice... Third and last time at 94,000...
0:39:26 > 0:39:30- BANGS GAVEL - You've bought it sir, well done.
0:39:30 > 0:39:35It was smiles all round for Ben, Emma and baby Monty.
0:39:35 > 0:39:40This £94,000 purchase was the tenth addition to the couple's buy
0:39:40 > 0:39:42to let business.
0:39:44 > 0:39:48We've met Ben before on the show and the last time we spoke,
0:39:48 > 0:39:51his financial arrangements left me speechless.
0:39:51 > 0:39:54It transpired in the end, we couldn't get a mortgage
0:39:54 > 0:39:57because of it being fire damaged, so we had to buy it cash
0:39:57 > 0:40:00effectively, so we've got no money left.
0:40:00 > 0:40:04The last £500 came from a payday loan, would you believe it?
0:40:04 > 0:40:07Hopefully, this time, he'll be a little more organised
0:40:07 > 0:40:10and he's here with Emma, daughter Merry
0:40:10 > 0:40:15and young Monty to tell me the story behind their latest purchase.
0:40:15 > 0:40:18- Ben, good to see you again. - Likewise, likewise.
0:40:18 > 0:40:21Becoming a regular on the show, actually.
0:40:21 > 0:40:24Yes, I'll be releasing a box set shortly, I'm sure.
0:40:24 > 0:40:28The first time, my recollection was a bit of a shock to you
0:40:28 > 0:40:31and it was all a bit, you know...
0:40:31 > 0:40:34How do you feel at this point, as you progress?
0:40:34 > 0:40:36Well, it is a little strange.
0:40:36 > 0:40:39I wasn't fully intending to buy this house,
0:40:39 > 0:40:43much like the other two really, so it's a slight shock.
0:40:43 > 0:40:45So, what happened with this one then?
0:40:45 > 0:40:48We were buying another house and that then fell through,
0:40:48 > 0:40:51but I'd arranged a kind of house of cards of deposit finance
0:40:51 > 0:40:54and approved mortgages that I didn't want to let slip away from me,
0:40:54 > 0:40:56so went to the auction and saw what was there,
0:40:56 > 0:40:59we had a quick look at this the day before.
0:40:59 > 0:41:02It looked borderline mortgageable, so nice house, nice area,
0:41:02 > 0:41:03thought we'd go for it.
0:41:03 > 0:41:06Borderline mortgageable isn't ideal, is it?
0:41:06 > 0:41:09You want it to be 100% definite mortgageable.
0:41:09 > 0:41:12Yes, I'm always optimistic. When I looked round, it looked perfect.
0:41:12 > 0:41:16Much like the last one, on closer inspection, not quite so.
0:41:16 > 0:41:20- But it passed the tests.- Right, this was almost like a rebound purchase.
0:41:20 > 0:41:22Yes, absolutely. Very well put. Yes.
0:41:22 > 0:41:26So, what happened with the other one then? That fell through then?
0:41:26 > 0:41:28No, actually it fell through and then it UN-fell through,
0:41:28 > 0:41:32so now we've ended up with slightly too many houses and I'm not quite
0:41:32 > 0:41:35sure where we're going to get the money from to renovate this one,
0:41:35 > 0:41:36but it'll all be fine.
0:41:36 > 0:41:39# Money's too tight to mention... #
0:41:39 > 0:41:43I shouldn't be surprised at the news that Ben has ended up buying
0:41:43 > 0:41:45not one but two houses this time round,
0:41:45 > 0:41:49or that he's not sure where the renovation budget will come from.
0:41:49 > 0:41:52Money may well be too tight to mention,
0:41:52 > 0:41:55but I'm going to mention it anyway.
0:41:55 > 0:41:57How did the finances on that work?
0:41:57 > 0:42:01Oh, 0% balance transfer is the phrase.
0:42:01 > 0:42:04- Credit cards?- Yes. But it'll all be fine.- Right.
0:42:04 > 0:42:08Not generally a strategy we approve of on Homes Under The Hammer.
0:42:08 > 0:42:12No, indeed, but I'm cautiously optimistic it'll all be fine.
0:42:12 > 0:42:16Would you be insulted if I said if there was a Frank Spencer
0:42:16 > 0:42:20of the property developing world, you seem to be it?
0:42:20 > 0:42:24I... Only slightly offended, I'd say. I've heard worse.
0:42:24 > 0:42:29You seem to stumble from one sort of interesting experience to another.
0:42:29 > 0:42:33And yet come up completely smelling of roses. Literally.
0:42:33 > 0:42:37Everything does always seem to work out in the end,
0:42:37 > 0:42:39so, yeah, we'll see about this one.
0:42:39 > 0:42:42With money being a bit tight on this project,
0:42:42 > 0:42:46an option would be for Ben to do as much of the work as he could.
0:42:46 > 0:42:50Unfortunately, this too is problematic.
0:42:50 > 0:42:53If I remember rightly, you're not Mr DIY, are you?
0:42:53 > 0:42:56No, I am hoping for a comedy moment to do something in this build.
0:42:56 > 0:42:59I seem to remember when we first met,
0:42:59 > 0:43:01you had a story about your DIY experience.
0:43:01 > 0:43:04Yes, something to do with sticking radiators under the wall with
0:43:04 > 0:43:06instant grip glue, which...
0:43:06 > 0:43:09I am a big fan of instant grip glue, but I'm not sure
0:43:09 > 0:43:13I stuck a radiator on with it, I couldn't entirely rule it out.
0:43:13 > 0:43:14Gosh.
0:43:14 > 0:43:18So, money forthcoming, what would you like to do to this place?
0:43:18 > 0:43:22Well, the interim solution might be to do only what's critical to
0:43:22 > 0:43:25- get it let out. - And the budget for that would be?
0:43:25 > 0:43:28- Probably about 3,000 for that option.- OK.
0:43:28 > 0:43:32The ideal would be to get hold of eight or 9,000
0:43:32 > 0:43:36and put a new kitchen, new bathroom, downstairs toilet,
0:43:36 > 0:43:38and fully re-skim everywhere that needs it
0:43:38 > 0:43:44and basically make it a nice house that's hopefully worth 120, 125,000.
0:43:44 > 0:43:47Right. So, what is the timescale?
0:43:47 > 0:43:49I mean, how are things going to pan out here?
0:43:49 > 0:43:54Option A, we'd hope to turn it round in three to four weeks really,
0:43:54 > 0:43:57just to get tenants in and start getting some money in to pay
0:43:57 > 0:43:59- those mortgage payments.- Sure.
0:43:59 > 0:44:02Option B, probably two months.
0:44:02 > 0:44:03So, in 20 years' time,
0:44:03 > 0:44:07will you be sitting on a 600 property portfolio, going, "I don't
0:44:07 > 0:44:10"know quite what happened, but I appear to have got 600 properties"?
0:44:10 > 0:44:12We're on ten now and I think that's it.
0:44:12 > 0:44:16That's good enough to retire on when they're paid off, so... I think.
0:44:16 > 0:44:20Right. Well, listen, in some ways I hope we don't see you again soon.
0:44:20 > 0:44:21Absolutely.
0:44:21 > 0:44:25- But it has been lovely to see you again actually.- Likewise. Cheers.
0:44:25 > 0:44:26- Good luck with it.- Thank you.
0:44:28 > 0:44:31So, Ben stumbling his way to another
0:44:31 > 0:44:34property purchase to add
0:44:34 > 0:44:36to his portfolio.
0:44:36 > 0:44:40But seriously, this is not really the way to go about it.
0:44:40 > 0:44:43He could have got himself into all sorts of financial
0:44:43 > 0:44:47problems by not having his finances sorted out before he bought.
0:44:47 > 0:44:48So don't do that at home!
0:44:48 > 0:44:52How will he get on sorting this place out, if he can find the money?
0:44:52 > 0:44:54You can find out later in the show.
0:44:57 > 0:45:01So, we've seen how one property renovation turned out.
0:45:01 > 0:45:04How was it for our other buyers? Fruitful or fretful?
0:45:04 > 0:45:06Was it fabulous or frightening?
0:45:06 > 0:45:09Let's see how they got on.
0:45:11 > 0:45:15We're heading down south once more to Hoddesdon in Hertfordshire,
0:45:15 > 0:45:18where earlier, I took a look around this one-bedroom flat in a modern
0:45:18 > 0:45:23block, not far from the town centre with a guide price of 110,000.
0:45:23 > 0:45:26You can imagine at night, you've got the telly on and somebody's trying
0:45:26 > 0:45:29to get to sleep in here and you've just got a little cardboard
0:45:29 > 0:45:31door and you can hear everything.
0:45:31 > 0:45:35I mean, that really is how small the flat is.
0:45:35 > 0:45:36OK, so yeah, it was small,
0:45:36 > 0:45:40but the real value lay in its location, close to the road
0:45:40 > 0:45:42and rail links that would take you straight in to
0:45:42 > 0:45:46Central London in under half an hour.
0:45:46 > 0:45:49There were two drawbacks that the new owner might have to address,
0:45:49 > 0:45:54the lack of central heating and a 75 year lease.
0:45:54 > 0:45:57And if you want to sell this on, a longer lease will make it
0:45:57 > 0:46:00so much easier and it will add value too.
0:46:02 > 0:46:03Now, aside from the lease,
0:46:03 > 0:46:06the guide price made it an attractive lot at auction and it
0:46:06 > 0:46:12was purchased by part-time property developer Kevin for £116,500,
0:46:12 > 0:46:14although Kevin hadn't really seen
0:46:14 > 0:46:18a great deal of his purchase beforehand.
0:46:18 > 0:46:20- So, did you view the property?- No.
0:46:20 > 0:46:23- So, you didn't view the property? - No, I didn't.
0:46:23 > 0:46:26You were literally going on the price?
0:46:26 > 0:46:31I'd done a lot of research and I saw a few photos and I came here
0:46:31 > 0:46:34and I looked through the letterbox and I think that was enough.
0:46:38 > 0:46:41Kevin's plan for this property was to upgrade the kitchen
0:46:41 > 0:46:44and give everything a good coat of paint.
0:46:44 > 0:46:47And he was going to sort out that lease.
0:46:48 > 0:46:51# For ever more... #
0:46:51 > 0:46:55So, we returned four weeks later to catch up with Kevin's progress.
0:46:57 > 0:47:01# Everything changes but you... #
0:47:05 > 0:47:08Mm, well, there's a clue in the song.
0:47:08 > 0:47:11And, unless my eyes are deceiving me, it looks like, well,
0:47:11 > 0:47:13nothing's changed.
0:47:13 > 0:47:17What's Kevin been up to over the last four weeks?
0:47:17 > 0:47:19I was planning to change the kitchen
0:47:19 > 0:47:21and the bathroom and do the flooring.
0:47:21 > 0:47:23Total renovation.
0:47:23 > 0:47:27But the experts, the agency, said the condition of the house is,
0:47:27 > 0:47:29as it is, good. It doesn't need anything.
0:47:29 > 0:47:33So, I decided to go with the opinions of experts.
0:47:33 > 0:47:34So, I left it as it is.
0:47:34 > 0:47:36I wasn't sure what I was going to do with the property,
0:47:36 > 0:47:38either renting it or selling it,
0:47:38 > 0:47:41but, after getting the expert viewing on this property,
0:47:41 > 0:47:44I decided to sell it and move on to the next property.
0:47:44 > 0:47:47# Look but don't touch
0:47:47 > 0:47:49# Look but don't touch
0:47:49 > 0:47:51# Look but don't touch
0:47:51 > 0:47:54# Look but don't touch me
0:47:54 > 0:47:57# Look but don't touch... #
0:47:57 > 0:48:00So, Kevin's decided to go for a quick sale.
0:48:00 > 0:48:04And is leaving the flat exactly as he found it.
0:48:04 > 0:48:06But has he done anything about extending the lease,
0:48:06 > 0:48:09to make the flat more attractive just prospective buyers?
0:48:09 > 0:48:12I meant to view the leasing.
0:48:12 > 0:48:15It's a 75 year lease at the moment,
0:48:15 > 0:48:18but, as it stands, it is mortgageable and I
0:48:18 > 0:48:21didn't need to do it. So, I didn't want to put the lease in my name.
0:48:21 > 0:48:26So, I wanted the new owner to do the lease on their terms.
0:48:26 > 0:48:28So, I left it for the new owners to do it.
0:48:28 > 0:48:31The only thing I've done that was the cleaning of the property.
0:48:31 > 0:48:34The property was in not very tidy condition,
0:48:34 > 0:48:37so all I've done is clean the property
0:48:37 > 0:48:40and get it nice and clean and tidy.
0:48:40 > 0:48:42So, to summarise...
0:48:42 > 0:48:46No central heating, no new kitchen, not one spot of new paint
0:48:46 > 0:48:51and no lease extension. Kevin has decided to take a gamble
0:48:51 > 0:48:54and is placing his hopes of a positive outcome on the upward
0:48:54 > 0:48:57direction of the local property market.
0:48:57 > 0:49:00And who better to tell us more about that
0:49:00 > 0:49:02than two local property experts,
0:49:02 > 0:49:05the estate agent who is marketing this property,
0:49:05 > 0:49:08but first, the agent who viewed it earlier.
0:49:09 > 0:49:13Demand for properties, like this, in the local area is so, so strong.
0:49:13 > 0:49:16I've never seen demand as strong locally.
0:49:16 > 0:49:19And supply is, probably, at its weakest point I've
0:49:19 > 0:49:21experienced in all my years in the business.
0:49:21 > 0:49:25The property will appeal to the investor buyer,
0:49:25 > 0:49:28because that part of our market is very active at the moment.
0:49:28 > 0:49:31As well as the first-time buyers getting onto the scene, because
0:49:31 > 0:49:35it is at the end the affordable end of the market in our area.
0:49:35 > 0:49:39Kevin will be the first to admit he hasn't really added any value
0:49:39 > 0:49:41to this flat. If you hold on to property long enough,
0:49:41 > 0:49:43its value may rise right anyway.
0:49:43 > 0:49:48He purchased it at auction in early September, for £116,500
0:49:48 > 0:49:52and eight weeks later, it's back on the market.
0:49:52 > 0:49:56Has two months made much difference to the value?
0:49:56 > 0:50:00I think the guy has hit lucky here, really. The markets gone with him.
0:50:00 > 0:50:03The current open market valuation for a property such as this,
0:50:03 > 0:50:05with the length of lease it has,
0:50:05 > 0:50:08I would envisage somewhere in the region of £140,000.
0:50:08 > 0:50:13We're currently marketing the property in the region of £150,000.
0:50:13 > 0:50:16We've had a number of viewings
0:50:16 > 0:50:19and we've had several offers on the property.
0:50:19 > 0:50:22I'm confident that we we'll tie up the sale in the very near future.
0:50:22 > 0:50:25A pretty staggering result, I'm sure you'll agree.
0:50:25 > 0:50:30If Kevin manages to get his preferred value, 150,000,
0:50:30 > 0:50:35he'll pocket a profit of £33,500 less fees and tax.
0:50:35 > 0:50:38I was right, so, you know.
0:50:38 > 0:50:41I had a feeling about the area and the prices.
0:50:41 > 0:50:45I went with my gut feeling and there it was.
0:50:45 > 0:50:48So, you know, got there.
0:50:48 > 0:50:51So, a mix of intuition, good timing, and good fortune
0:50:51 > 0:50:54appear to have made this project a success.
0:50:54 > 0:50:58So, what's next on Kevin's four-year plan?
0:50:58 > 0:51:01As soon as this one goes, I'll be back on auction again
0:51:01 > 0:51:02and I should see you soon.
0:51:11 > 0:51:14Earlier in the show, I visited Wellington in Telford
0:51:14 > 0:51:17and this former, local authority three-bed semi,
0:51:17 > 0:51:20with a guide price of £75,000+.
0:51:20 > 0:51:24This type of property seldom disappoints
0:51:24 > 0:51:26and this one was no exception.
0:51:26 > 0:51:30Generally, really solidly built, nicely proportioned rooms.
0:51:30 > 0:51:33You know, built to last, they were.
0:51:33 > 0:51:35With three bedrooms and a bathroom upstairs,
0:51:35 > 0:51:40this house would make an ideal family home or rental investment.
0:51:40 > 0:51:44And the sizeable back garden just added to the appeal.
0:51:44 > 0:51:48There was, however, one rather noisy fly in the ointment.
0:51:48 > 0:51:50DOGS BARK
0:51:50 > 0:51:52Living next door to a house which has constantly woofing dog
0:51:52 > 0:51:56can cause quite a lot of neighbourly problems.
0:51:56 > 0:51:59Not worried in the slightest by barking dogs were Ben and Emma,
0:51:59 > 0:52:05who paid £94,000 to add this house to their buy to let business.
0:52:05 > 0:52:09To complicate matters, Ben found out he'd also bought
0:52:09 > 0:52:13another house, but wasn't sure if he had the budget to renovate both.
0:52:13 > 0:52:15How did the finances on that work?
0:52:15 > 0:52:19- Well, "0% balance transfer" is the phrase.- Credit cards?
0:52:19 > 0:52:22Yes, but I'm cautiously optimistic it will all be fine.
0:52:24 > 0:52:27# What do you say, Frankie? Do do do do do do... #
0:52:27 > 0:52:31So, the future of this refurbishment was dependent very much
0:52:31 > 0:52:34on how well Ben could balance his credit card debt.
0:52:34 > 0:52:39This approach to finance put me in mind of a famous 1970s sitcom
0:52:39 > 0:52:41character.
0:52:41 > 0:52:44Would you be insulted if I said, if there was a Frank Spencer
0:52:44 > 0:52:48of the property development world, you seem to be it?
0:52:48 > 0:52:50Everything does always seem to work out in the end,
0:52:50 > 0:52:52so yeah, we'll see about this one.
0:52:52 > 0:52:55# You gotta have something in the bank, Frank
0:52:55 > 0:52:57# Gotta have something in the bank, Frank
0:52:57 > 0:52:59# You gotta have something to start... #
0:52:59 > 0:53:01Did Frank, sorry, I mean Ben,
0:53:01 > 0:53:04manage to find something in the bank to renovate this three-bed semi,
0:53:04 > 0:53:07or was it a quick lick of paint and a tidy up?
0:53:11 > 0:53:14Six weeks have passed since our first visit,
0:53:14 > 0:53:16and we're back to see the results.
0:53:26 > 0:53:29Well, the good news is that Ben and Emma found the money,
0:53:29 > 0:53:34and apart for some minor snagging to be done, the job's complete.
0:53:34 > 0:53:37But what changes have they made in here?
0:53:38 > 0:53:43Basically, we've painted, carpeted, put a new kitchen in,
0:53:43 > 0:53:47sorted out the strange kind of structure in the bathroom.
0:53:47 > 0:53:48Dealt with a bit of damp.
0:53:48 > 0:53:52Tidied up the gardens and basically got it ready to let out.
0:53:52 > 0:53:55The bathroom was quite an interesting one
0:53:55 > 0:53:56because it goes over the stairs,
0:53:56 > 0:53:59so we ripped out what was there already,
0:53:59 > 0:54:03which was a cheap bit of kitchen unit, and we created a new unit
0:54:03 > 0:54:06for the sink and tiled it, and it is looking a lot better than it did.
0:54:06 > 0:54:07Clean and tidy.
0:54:09 > 0:54:11They've spent £5,000, which is
0:54:11 > 0:54:15halfway between their plan A and plan B estimates.
0:54:15 > 0:54:20But some unexpected problems did impact on their budget.
0:54:20 > 0:54:23In the kitchen, when we pulled up the lino, we found there was
0:54:23 > 0:54:27actually three layers of lino, and it had caused a lot of damp and moisture.
0:54:27 > 0:54:31So we've had to take all the plaster off the walls to a certain
0:54:31 > 0:54:33level and replaster those.
0:54:33 > 0:54:37And moved the door, interestingly, just to ease the damp problem.
0:54:37 > 0:54:38But it is sorted now.
0:54:38 > 0:54:42When we bought the house, the plaster was a bit of an unknown.
0:54:42 > 0:54:44We could see there were bits that were blowing,
0:54:44 > 0:54:46but we weren't sure what was behind the wallpaper.
0:54:46 > 0:54:51We stripped all the wallpaper first and found most of the upstairs plaster was in a bad state.
0:54:51 > 0:54:53So we've totally replastered upstairs,
0:54:53 > 0:54:56we've ended up doing a lot more plastering than we wanted to,
0:54:56 > 0:55:00and than our budget wanted to, but here we are.
0:55:00 > 0:55:04Their budget was squeezed and so was their time schedule.
0:55:04 > 0:55:08We literally only had two and a half weeks from
0:55:08 > 0:55:12when we actually physically started doing any work to today.
0:55:12 > 0:55:14We're going away tomorrow.
0:55:14 > 0:55:17We really needed to get it let out before we left.
0:55:17 > 0:55:19So that posed a few challenges.
0:55:19 > 0:55:22Our contractor has been working 80, 90 hour weeks,
0:55:22 > 0:55:25but we've got there, and we're pretty happy.
0:55:26 > 0:55:28So, Ben and Emma have arrived at a mid-budget,
0:55:28 > 0:55:31quick turnaround solution in order to get this
0:55:31 > 0:55:34property on the rental market as quickly as possible.
0:55:36 > 0:55:38Let's hear what two local property experts
0:55:38 > 0:55:41think of the standard of finish.
0:55:41 > 0:55:43It is my second time inside of the property,
0:55:43 > 0:55:45and it is much better than what I remember it being.
0:55:45 > 0:55:48The bathroom is a lot better, it is a bit more practical now.
0:55:48 > 0:55:49They've done a good job.
0:55:49 > 0:55:52It is adequate for the rental market, I believe.
0:55:52 > 0:55:55The standard of finish for this property, for rental purposes,
0:55:55 > 0:55:57is certainly acceptable,
0:55:57 > 0:56:01and is probably about right in the current rental market.
0:56:01 > 0:56:03And what about valuations?
0:56:04 > 0:56:07If this was to go on the open market today,
0:56:07 > 0:56:12I would suggest a market valuation of £115,000.
0:56:12 > 0:56:18In terms of sales, I would estimate the property to be worth £115,000.
0:56:18 > 0:56:21Ben and Emma bought this house for 94,000,
0:56:21 > 0:56:26and their spend of 5,000 brings the total investment to 99,000.
0:56:26 > 0:56:29A sale at 115,000 would bring them
0:56:29 > 0:56:34a profit of around 16 grand before tax on fees, but these guys are
0:56:34 > 0:56:38in the buy-to-let business, so what rental income might they expect?
0:56:40 > 0:56:41For rental purposes,
0:56:41 > 0:56:45I would estimate the property to be worth £595 per calendar month.
0:56:45 > 0:56:49I would suggest a rental income of £600 per calendar month.
0:56:49 > 0:56:53£600 per calendar month equates to a yield of just over 7%,
0:56:53 > 0:56:58- and that figure suits Ben down- to a T. Yeah, very happy with that.
0:56:58 > 0:57:01As long as the yield's there, then, you know, things will
0:57:01 > 0:57:05pay for themselves, and over time, we'll be in a good place.
0:57:05 > 0:57:10When I last met Ben, he had his strategy and his numbers worked out.
0:57:10 > 0:57:12Or so it seemed.
0:57:12 > 0:57:13So, in 20 years' time,
0:57:13 > 0:57:16will you be sitting on a 600 property portfolio, going, "I don't
0:57:16 > 0:57:19"know quite what happened here, but I appear to have got 600 properties?"
0:57:19 > 0:57:22We're on ten now, and I think, I think that is it, that is
0:57:22 > 0:57:26- good enough to retire on when they are paid off, so...- Right.- I think.
0:57:26 > 0:57:31A mere six weeks later, there have been some interesting developments.
0:57:31 > 0:57:33Well, we have another two purchases going through now,
0:57:33 > 0:57:36which would bring us to 12.
0:57:36 > 0:57:42At that point we are totally maxed out, mortgage, credit profile,
0:57:42 > 0:57:46loan-wise, so I think we will be sitting back for quite a few
0:57:46 > 0:57:49years and just seeing what happens.
0:57:49 > 0:57:53Well, Ben, we've found a song that's perfect for you and Emma.
0:57:54 > 0:58:00# Ben, the two of us need look no more... #
0:58:04 > 0:58:06Well, that's it for today's show, but we'll have more
0:58:06 > 0:58:09stories from the property auction rooms for you next time.
0:58:09 > 0:58:12- Yeah, we'll see you for more Homes Under The Hammer very soon.- Goodbye.
0:58:12 > 0:58:14- Goodbye.- Goodbye.