Episode 1 Homes Under the Hammer


Episode 1

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Transcript


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Hello, and welcome. When you're thinking about buying property,

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the choices can sometimes be overwhelming.

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Yeah, don't get bogged down.

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Get yourself a clear head and get your priorities right.

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Yes, find an area, set a budget, and of course, do your research.

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And of course,

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you might find just what you're looking for under the hammer.

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Many different properties go under the hammer every week.

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Yes, some are ready to move into,

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others require just a little bit more tender loving care.

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Those are the ones we love.

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So, let's see how our buyers got on on today's programme.

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In Tilton on the Hill,

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the kitchen in this charming stone cottage is in need of a rethink.

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I'd be inclined to knock it out, give yourself a bit of an extension.

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While in Croydon, south London,

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some legal complications with this end terrace need investigating.

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It's definitely something that your solicitor should check out.

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And in the town of Rainham in Kent, this bungalow needs paint,

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and lots of it.

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It's very marshmallow-like everywhere, soft powder pink.

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All these properties were bought at auction.

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We find out who got them and how much they paid

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-when these homes went under the hammer.

-Sold. Well bought.

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Don't you just sometimes crave the quiet life?

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The chocolate-box cottage, the village green?

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Well, you could always move to Tilton on the Hill.

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It's convenient for pork pies,

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being just eight miles from Melton Mowbray.

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What a beautiful day in a really nice village on

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the outskirts of Leicester.

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It's this building I'm here to see -

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a stone-built cottage with a guide price of £220,000.

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It has three bedrooms, and it is beautiful on the inside.

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But is it beautiful on the inside? Let's have a look.

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OK, we've got a small porch-way area, and right in front

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we've got a shower sort of wet room there and a toilet.

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They are a bit of a strange shape because they are on the corner.

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How you'd reconfigure that, I'm not sure.

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And it does say to me that if there is a toilet downstairs,

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there may not be one upstairs.

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Up a step into the kitchen, which is a little tight.

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But not too bad.

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You'd have to start again in here.

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Got the old-fashioned cooker there.

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Stairs up to the bedrooms.

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A little bit of storage.

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I'm thinking to myself you need some more space.

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I'd be inclined to knock it out and give yourself a bit of an extension.

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Get that extra needed space in and around the kitchen,

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and a bit of a family room as well. Let's see what else there is.

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So, as I'm coming through,

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I can see there is this small lean-to just there

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looking out onto the back garden.

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You can actually feel the heat coming in off that.

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Into the lounge living area, with a real fireplace there -

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what I expected in a village cottage.

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A little bit of central heating as well.

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And I can see through that window, that's the road,

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which is the front of the house, so if you were looking to extend,

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your only option would be to go into the back garden.

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Sometimes extending into the garden

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can really compromise the outside space.

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But in this case, there is plenty of land with this cottage.

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This is a conservation area, so by definition,

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development will be restricted.

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However, there is an old outbuilding

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that is currently being used as a bin store.

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I think this could be developed to be part of the downstairs space.

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# Standing in the garden

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# Your little garden... #

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And there is more to explore back inside.

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Upstairs we have got three bedrooms.

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Bedroom one there, which is a really big bedroom, actually.

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Wasn't expecting that.

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Across the hall, we've got bedroom two, which is quite small.

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Along a long corridor, wasted space there.

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In the bedroom three, which is not only small,

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it's a strange shape as well.

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Now, there is no bathroom, no toilet upstairs.

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So, for me, it's crying out,

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"Turn this into your family bathroom up here,"

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and if you are thinking of doing that extension,

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don't just extend the kitchen - maybe extend above as well,

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which will give you your bedroom back

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so you can have three bedrooms,

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bathroom upstairs and extra living space.

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So, odd-shaped rooms are everywhere here,

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but some space could definitely be put to better use.

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# But I've got a blank space, baby

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# And I'll write your name. #

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We called in a property expert from the auction house which sold the

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property to get his valuations

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and opinions on extending.

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It's a good-sized plot, so there's plenty of scope for extension.

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However, it is in a conservation area,

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so you would have to be a little bit careful on the materials

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that are used to extend the property. It would probably

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have to be in keeping with the surrounding area of local stone

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and possibly slate roofs.

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With a guide price of £220,000,

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what scope is there to modernise and make a profit?

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If it was modernised,

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I'd expect the valuation to be somewhere in the region of 325,000.

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However, if it was extended as well to probably make

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a four-bedroom property, then the valuation probably would be

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somewhere in the region of £450,000.

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So, with a guide price of £220,000, extension or not,

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there is certainly money to be made here.

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But I reckon a house like this in a conservation area

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could eat away at any potential profit

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and this might become a money pit.

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What could it fetch on the rental market?

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Once the property is fully modernised,

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I'd expect the rental to be in the region of £900 per calendar month.

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If the property was extended to provide four bedrooms,

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then I would expect that rental income to increase

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to around £1,200 per calendar month.

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This could be a beautiful family home in some amazing surroundings,

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but it's just a little too small inside.

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If it were mine, I'd look to extend,

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which would give you that much needed extra space.

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

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Lot number six.

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Beautiful stone three-bedroom character property.

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Who will start me off on the guide at 220, may I say?

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218. 216. 216 is bid.

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We're away at 216,000. 218, sir.

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And 20, on my right.

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'Having reached the guide price, the bids continue in £1,000 steps.

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'We rejoin at £275,000.'

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275. 276. 277.

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Shakes his head. For the first time at £276,000.

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The second time at £276,000.

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Third and final time, if we are all done with it?

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Sold. It's yours, sir. Well bought.

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'Paying a whopping 56 grand over the guide price was Toby.

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'He's the financial brains of a company with Paul,

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'also at the auction.

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'Their 276 grand bid secured the cottage,

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'and it was the building brains of the company Paul

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'who met me back at the property to tell me his plans.'

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-Paul, nice to meet you. How are you? And congratulations.

-Thank you.

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-So tell us about the auction. How was it?

-Expensive.

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Didn't go our way. We were hoping to bag a bargain.

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And we had somebody who really wanted it the same as us,

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and that has pushed us up a bit.

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So it puts pressure on us now for

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the budget in the construction costs,

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to try and keep that under control.

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Why this particular property in this area?

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It's... We've got a background more in new build.

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We are trying to pick up a single...

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We're a building company - a single building plot.

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Couldn't find any. At the moment they are all overpriced.

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And so we've looked for a bit of a doer-upper.

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It's a new venture for you?

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It is. I mean, I've done a lot of work for people in this kind of

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environment, working for somebody.

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Could be working for you on a refurb, barn conversion, extension, whatever.

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But this is the first time as a company

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-we've taken on this kind of job.

-If you're buying land,

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-do you build on that land to rent or to sell again?

-For sales.

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No, we can't afford to rent. We have to shift it on,

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and we'll try and shift this on as quickly as we can.

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How are you going to change it?

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This is going to be a subtle renovation of the original cottage.

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The stonework needs restoration. We'll put back timber windows.

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To get our money back because, you know,

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we've got to get the money back.

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We're going to have to put a modest extension

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to gain some extra bedrooms

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and some extra accommodation space on the ground floor.

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Big living kitchen with French doors overlooking the garden

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and then hopefully another one/two bedrooms upstairs.

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Assuming the planning permission goes through, which is always...

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-Planning is always an issue.

-And takes time. Puts time on your...

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Yes, takes a lot of time. It does. We've got an existing garage -

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we don't know whether to convert that into another room. Again, budget depending,

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that'll give us a bit more space on the ground floor as well.

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-Yeah, of course.

-Possibly an oak frame garage if we can afford it,

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but that isn't... That's looking doubtful at the moment.

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-Talking of purse strings...

-Yeah.

-What is your budget, sir?

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Well, we always talk ex-VAT, builders,

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and I've done deed sale costs,

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and we're looking at something around 112 plus vat.

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-So we are looking about 130 grand.

-Yes, and that's...

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Which is a lot of money. It's the VAT that kills us.

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On the new build, you don't pay VAT.

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Yeah. So the taxman will be happy on this one.

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As well as no VAT on new houses,

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VAT is zero-rated on flats

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if they are new build or on alterations to suit people

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with disabilities, or buildings used for charitable purposes.

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But none of those criteria apply here.

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The whole building - plumbing, electrics, re-plastering -

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it's a complete shell rebuild, really.

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-It is, isn't it? Complete overhaul.

-Yeah.

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And how long is that going to take you, fingers crossed?

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Well, that depends whether it's my decision

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or the planning office's decision.

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If we were just able to crack on,

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we'd turn it round in five, six months.

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But we're going to be waiting for planning permission. It's a conservation area.

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I've got the conservation officer

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who is going to have to sign off things like the way we are doing

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the stonework and the restoring of the outside of the building,

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so that will slow us right down.

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What's the best scenario, do you think,

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if you're having to wait for planning and...

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-Within a year. That much difference.

-That long?

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We could take three months trying to get planning permission.

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So, I'm going to have to drop away and go and get a job.

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-So, if you want anything doing...

-I might be looking for a job as well.

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Pretty soon.

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Work or lack of it might be a laughing matter now,

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but when the recession hit,

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it was far from humorous for Paul and the company.

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We had a couple of big houses we'd built, lovely houses,

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and nobody could get a mortgage. The bank wanted their money back.

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You know, it's a story that's been heard a lot in recent years.

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-Yeah. Of course.

-So, this is us.

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It's been a hard five years, six years, coming back, really.

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-It is.

-So, this is an important job for us.

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The past experience of Toby and Paul demonstrates only too well problems

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that can hit any kind of property development.

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And even in this more buoyant market, there are issues.

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The shortage of affordable land forcing them to change their plans.

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There is a lot at stake for Toby and Paul, so what's the biggest worry?

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The budget, obviously, is the big issue.

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Whether we can get the specification that we need at

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the high-end to get back what we need.

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So, it's mainly the constraints of the budget.

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The construction doesn't bother me in the slightest.

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-I wish you all the best.

-Thank you.

-Good luck.

-Cheers.

-Good luck.

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Paul's found himself a lovely cottage in a really nice village,

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and I can understand why he stuck to his guns at auction.

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But there are a few problems he has to overcome.

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Planning permission - it's in a conservation area,

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which may throw up a few problems.

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And that budget of £130,000 - will it be enough?

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You can find out later on in the programme.

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Today I'm in Croydon, south London,

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home to the Brit School for Performing Arts and Technology.

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Notable alumni include Adele, Jessie J and the late Amy Winehouse.

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# And in your way

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# In this blue shade

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# My tears dry on their own. #

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With the Brit School close by,

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many people have come to Croydon seeking fame and fortune.

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When it comes to property,

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it seems that people are coming here just seeking the fortune bit.

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Croydon is widely tipped to be a real property hotspot,

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with lots of redevelopment, including a new shopping centre.

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So, £180,000 for this could be a really interesting opportunity.

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Before I get into the house -

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although I am actually into the house already -

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I think it's worth noting that I don't think this is what they call

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a standard construction house.

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It's not made of brick, and it just looks wrong from the outside.

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So, definitely some investigation needs to be required.

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My guess is it's a wooden construction

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or possibly concrete slab construction.

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And that throws up issues when it comes to getting mortgages

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and things like that,

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which means it could just be a cash buyer purchase. Anyway, moving on to

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what you actually find when you walk through the door,

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standard construction or not - a kitchen.

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Well, actually, this isn't bad.

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Looks like it's been relatively recently refurbished,

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and at first glance it looks a bit tatty,

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but I think you could sort this out.

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And it's quite a nice sized space for the house,

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compared to what it looks like from the outside.

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Through this little archway into your rear living room, and again,

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not a bad size.

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And be benefited by patio doors out there, out into the garden,

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which would be quite nice.

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Something slightly easier to replace - the wallpaper.

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Not to everyone's taste.

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It sort of comes in and out of fashion.

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It pops in for a few months and then it's out again, thank goodness.

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Something a little less garish, I think.

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Well, a good sized house, and only in need of some cosmetic work.

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# A poor man's roses

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# Are a rich man's gold. #

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So, what about the upstairs?

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Well, upstairs, and again, not in bad condition.

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Toilet and bathroom there. It's pretty serviceable,

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especially if you're going to try and rent this place out.

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And then three bedrooms.

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I mean, I say three bedrooms,

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two of them have been knocked through

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to create this sort of open-plan bedroom design.

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Maybe at some stage this was a master bedroom

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and somebody had a baby or something,

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and this is like the baby's room, so they could at least access that.

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Not to worry, really, in terms of the layout,

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because it's only a stud partition wall, so you can easily change that.

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What is slightly more significant is something I haven't told you about

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the property yet, and that is that it's a probate property,

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as it formed part of the estate of a deceased person.

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Now, that's not necessarily a bad thing, not necessarily a good thing.

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There are complications, perhaps.

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And it's really important that you know exactly what

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the legal circumstances of that probate situation are.

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It's probably detailed in the legal pack.

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It's definitely something that your solicitor should check out,

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so that at least you know one way or the other what's going on.

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Probate, or confirmation as it is known in Scotland,

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means that an executor is sorting out the deceased's affairs,

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and the process can sometimes be fraught and lengthy.

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So, despite the fact that on the face of it

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it looks like a pretty easy doer upper,

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you still need to do your homework.

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Let's take a look outside.

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Well, at the back of the property, a little garden and a garden shed.

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But actually, here you can really see clearly that whole

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non standard construction issue. You need to take a look at that.

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It's not what you expect a house to look like, is it?

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With this sort of fascia board and the pebbledash and...

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Well, if you weren't sure before now,

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then that certainly convinces you.

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So, that is an issue, and all the other ones we talked about.

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But let's come back to this whole thing

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of what's going on in this area.

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And when you're buying property as an investment, what is happening

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around it is clearly one of the most important things,

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and it doesn't get much better than here.

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We've got masses of infrastructure being redeveloped.

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We've got the huge great shopping centre going in.

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You're ten minutes walk from a train station which is 20 minutes into

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the centre of London. It's ticking a lot of investment property boxes.

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So, I'm impressed with the potential of the place.

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But we invited along a local estate agent to get his opinion.

0:17:040:17:08

I believe this is a good property.

0:17:110:17:12

It's got potential, and it's in a very good area.

0:17:120:17:15

If this was my property, I would keep the living room the way it is -

0:17:150:17:19

just change the way the living room looks.

0:17:190:17:22

I would update the kitchen.

0:17:220:17:24

In the upstairs bedroom,

0:17:240:17:25

I would probably block the archway or put a sliding door

0:17:250:17:29

to give the other room some more privacy.

0:17:290:17:32

'And how much would he expect renovations to cost?'

0:17:320:17:35

To get this property up to a good standard,

0:17:350:17:37

I would say you need to spend between £10-£15,000.

0:17:370:17:41

'And once renovation is complete,

0:17:410:17:43

'what does he think the resale value will be?'

0:17:430:17:45

After renovating this property,

0:17:450:17:47

I believe you'll be looking to achieve around

0:17:470:17:50

the £340,000-£350,000 mark.

0:17:500:17:53

'And what does he think you can make in rent?'

0:17:530:17:55

I believe it'll be able to achieve a rental figure of

0:17:560:18:00

£1,300-£1,400 a month, excluding bills.

0:18:000:18:03

Well, it's certainly an interesting opportunity,

0:18:040:18:07

but not without its potential problems.

0:18:070:18:10

The probate being one and the construction being the other.

0:18:100:18:13

Still, with prices going up round here, as they are,

0:18:130:18:16

I'm sure someone took a punt on it when it went under the hammer.

0:18:160:18:19

Three-bed end of terraced house.

0:18:210:18:24

Cheap lot, this.

0:18:240:18:26

I don't know, start 170, go from there?

0:18:260:18:28

170 with you.

0:18:280:18:30

175. 175. 180.

0:18:300:18:35

185. 190. 195.

0:18:350:18:39

'This was a popular lot, and bidding was fierce.

0:18:390:18:42

'We rejoin as bidding reached 262,000.'

0:18:420:18:47

262, madam.

0:18:470:18:49

264. 264, sir.

0:18:490:18:52

264. 266. 265?

0:18:520:18:57

Try and help, might be a psychological barrier.

0:18:570:19:00

265. 266?

0:19:000:19:02

267. 267, elsewhere?

0:19:030:19:08

266, first time, second time, third and last time, if you're all done.

0:19:080:19:14

Sold, 266.

0:19:160:19:18

'And with the successful bid of £266,000

0:19:200:19:25

'were couple Kavita and Kevin.

0:19:250:19:27

'I met up with them back at the house to find out

0:19:270:19:30

'what they had in store for the place.'

0:19:300:19:32

Kavita, Kevin, great to meet you both.

0:19:320:19:34

-Hi, great to meet you too.

-Congratulations.

0:19:340:19:37

-Thank you.

-Tell me why you wanted to buy this house.

0:19:370:19:40

We want it for investment purposes, as houses are scarce these days,

0:19:400:19:46

so we wanted to bag one as, you know, the prices are still low.

0:19:460:19:52

Is this something you've done before?

0:19:520:19:54

Yes, this is our second now, buy to let property.

0:19:540:19:57

But the first one in auction.

0:19:570:19:59

Right. So why Croydon, then?

0:19:590:20:01

Croydon, it's a lot of improvements, so big shopping centre coming,

0:20:010:20:06

the prices are going to go up soon.

0:20:060:20:08

Right. Now, what do you know about the construction of this house,

0:20:080:20:11

because I'm not so sure.

0:20:110:20:13

It's not...a conventional brick wall.

0:20:130:20:17

-I think it's timber frame, or I was told.

-Yeah.

0:20:170:20:20

This house wouldn't fetch as much as a brick house would.

0:20:200:20:24

-Yeah.

-Yeah. But still, if we make a profit, we make a profit.

0:20:240:20:28

Yeah, for sure.

0:20:280:20:29

Hm, I've been told this isn't a timber-framed house.

0:20:290:20:32

It's a concrete house with timber cladding,

0:20:320:20:35

which unfortunately can be more of an issue.

0:20:350:20:38

This means if they want to sell this on in the future, the likelihood is

0:20:380:20:42

they'll have to find a cash buyer.

0:20:420:20:45

However, the real problem for Kavita and Kevin

0:20:450:20:48

lies with that probate issue,

0:20:480:20:50

in that the deceased person's name was still on the title deeds

0:20:500:20:55

and not the person who had undertaken the selling of it.

0:20:550:20:58

The property is not really

0:20:580:21:02

registered in the people who are selling, their name, yet,

0:21:020:21:05

so it's a bit of problem getting a mortgage.

0:21:050:21:09

-Yeah.

-Ah.

0:21:090:21:11

So, we had to cash-buy the house.

0:21:110:21:13

-Cash buy.

-Oh, wow, that could have been a problem.

0:21:130:21:15

-Yeah.

-Yeah, well, we managed between the two of us.

0:21:150:21:19

So, did you read the legal pack before the auction?

0:21:190:21:22

-No.

-Oh, right.

-It's a learning curve.

0:21:220:21:25

Quite a steep one, in this instance,

0:21:250:21:27

because had you not been able to raise the cash,

0:21:270:21:30

-you would have been in deep doo-doo.

-Yes, we would be. Yeah.

0:21:300:21:33

That could have been an absolute disaster

0:21:360:21:39

had they not been able to buy the house outright.

0:21:390:21:42

A firm reminder that you should always read the legal pack.

0:21:420:21:46

But now that potential headache is out of the way,

0:21:460:21:49

I was curious to find out what they had planned for the house.

0:21:490:21:52

So, tell me what you're going to do to it.

0:21:520:21:54

Most probably, we change the flooring everywhere.

0:21:540:21:57

And then painting and decorating, do the garden.

0:21:570:22:02

Yeah, do all the tests, electric tests.

0:22:020:22:05

What about the kitchen and the bathroom?

0:22:050:22:07

Are they going to stay the same?

0:22:070:22:08

Looks like it, yes. Because I think the kitchen is not too bad.

0:22:080:22:11

Yeah, so we'll most probably leave it.

0:22:110:22:14

-OK. And then get it on the rental market?

-Yes, yes.

-And wallpaper?

0:22:140:22:18

-Er, a debate about the wallpaper!

-This one...

0:22:180:22:21

There had been a debate, so we'll see.

0:22:230:22:25

Yeah, divides opinion, doesn't it?

0:22:250:22:27

Well, regardless of what happens to that wallpaper, the place is going

0:22:270:22:31

to be getting a face-lift to appeal to prospective renters.

0:22:310:22:34

-So, who is going to be doing the work?

-Not me. Kevin.

0:22:340:22:39

I'm going to do the work, and we'll just get some professionals as well.

0:22:390:22:43

OK, what kind of jobs can you do?

0:22:430:22:45

Well, do the floorings, do the decorating.

0:22:450:22:49

So, what is the budget that you've set aside?

0:22:490:22:51

I would say around £5,000 should be enough, for painting

0:22:510:22:56

-and flooring.

-And you've got your free labour here, so that's fine.

0:22:560:23:00

-Yeah.

-What kind of timescale?

0:23:000:23:02

Because presumably if you want to rent it out, time is money.

0:23:020:23:05

-I think we should be... Very soon.

-Very soon.

0:23:050:23:09

-If I say a week?

-No! A week?! I think you're being...

0:23:090:23:13

No, I think we would say three to four weeks.

0:23:130:23:16

-Three to four weeks, OK.

-A week!

0:23:160:23:18

-You'd need to start now!

-He's got his overall in the car.

0:23:180:23:21

Oh, yeah, good. Right, well,

0:23:210:23:23

we better get the interview done and you can get on with it.

0:23:230:23:25

Well, listen, congratulations. Good luck with it.

0:23:250:23:27

-Look forward to seeing how you get on.

-Thank you.

-Thank you.

0:23:270:23:31

Well, Kavita and Kevin have clearly spotted

0:23:310:23:34

the investment opportunity of this property in Croydon.

0:23:340:23:37

However, they did break one of the Hammer golden rules

0:23:370:23:41

by not reading the legal pack,

0:23:410:23:43

and that could, and in fact probably did,

0:23:430:23:45

get them into all sorts of trouble.

0:23:450:23:47

How will they get on? You can find out later in the show.

0:23:470:23:51

Coming up, in Rainham, Kent,

0:23:520:23:54

Simon and Stephen are in the dark

0:23:540:23:56

as to how their kitchen renovation will turn out.

0:23:560:23:59

That's going to be a mystery to all of us until it happens.

0:23:590:24:02

While in Croydon,

0:24:020:24:04

Kavita and Kevin have learnt a valuable lesson for next time.

0:24:040:24:08

Make sure that we have the legal pack checked over by a solicitor.

0:24:080:24:12

Back now to the Leicestershire countryside

0:24:190:24:21

and the village of Tilton on the Hill,

0:24:210:24:23

where, if you're Hank Marvin,

0:24:230:24:25

a fish and chip van calls twice a week.

0:24:250:24:27

Across the road from St Peter's Church,

0:24:280:24:30

which dates back to 13th century,

0:24:300:24:33

I looked around this three-bed stone built cottage

0:24:330:24:35

sold at auction for £276,000,

0:24:350:24:39

which was a massive 56 grand more than the guide price.

0:24:390:24:44

Up a step into the kitchen, which is a little tight, but not too bad.

0:24:460:24:52

You'd have to start again in here.

0:24:520:24:54

I'm thinking to myself, "You need some more space."

0:24:540:24:56

I'd be inclined to knock it out, give yourself a bit of an extension.

0:24:560:25:00

Get that extra needed space in and around the kitchen,

0:25:000:25:03

and a bit of a family room as well.

0:25:030:25:06

'Business partners Toby and Paul made the highest bid on the day.

0:25:060:25:10

'Usually they focus on new build developments,

0:25:100:25:12

'but the high cost of land forced them to move on

0:25:120:25:15

'and try renovation instead.

0:25:150:25:17

'I met builder Paul to find out their plan

0:25:170:25:19

'for this cottage in a conservation area.'

0:25:190:25:21

There's going to be a subtle renovation of the original cottage.

0:25:210:25:24

The stonework needs some restoration.

0:25:240:25:26

We'll put back timber windows.

0:25:260:25:28

And to get the floor area up, to get our money back, because you know,

0:25:280:25:32

we've got to get the money back,

0:25:320:25:34

we're going to have to put a modest extension

0:25:340:25:36

to gain some extra bedrooms

0:25:360:25:37

and some extra accommodation space on the ground floor.

0:25:370:25:40

Big living kitchen with French doors overlooking the garden,

0:25:400:25:42

and then hopefully another one/two bedrooms upstairs.

0:25:420:25:45

Assuming the planning permission goes through, which is always...

0:25:450:25:48

-Planning is always an issue.

-And takes time. Puts time on your...

0:25:480:25:51

Yes, takes a lot of time. It does.

0:25:510:25:54

Paul's estimated budget with a two-storey extension was 130 grand

0:25:540:25:59

and a planning-dependent timescale of up to a year.

0:25:590:26:03

We're back six months later to see if there is a two-storey extension.

0:26:030:26:08

No, but there is substantial additional accommodation

0:26:090:26:12

thanks to permitted development. As feared,

0:26:120:26:15

the planning process was taking too long for Toby and Paul,

0:26:150:26:18

so they found another way.

0:26:180:26:20

# One way or another I'm going to see you... #

0:26:200:26:23

I knew that extending to make the kitchen bigger

0:26:240:26:27

was the way to go here. It is fabulous.

0:26:270:26:30

With limestone tiles, oak worktops, bespoke carpentry windows and doors.

0:26:300:26:36

The other obvious layout change is

0:26:440:26:46

the transformation of the former bin store.

0:26:460:26:49

It's become an integrated study.

0:26:530:26:56

Paul uncovered an original doorway from the house,

0:27:050:27:08

complete with oak lintel that had been walled up.

0:27:080:27:10

Other dramatic changes have happened upstairs.

0:27:130:27:17

Paul was determined to make way for a bathroom up here.

0:27:170:27:20

# One way or another I'm going to see you... #

0:27:220:27:25

A small amount of space has been taken from bedroom two to create

0:27:290:27:33

a family bathroom, leaving a good-sized single.

0:27:330:27:36

Bedroom one has also seen a change of floor plan.

0:27:390:27:43

An en-suite shower room has been added.

0:27:430:27:45

And like the family bathroom, there is a new roof window to illuminate.

0:27:470:27:51

The third bedroom still has some unusual corner angles,

0:27:540:27:57

but everywhere has been replastered.

0:27:570:27:59

Heading back downstairs, where the old kitchen was is a new hallway.

0:28:000:28:03

Which all goes to prove,

0:28:050:28:07

if you can't get the planning permission you want,

0:28:070:28:09

there is always plenty you can still do.

0:28:090:28:12

# One way or another. #

0:28:120:28:15

This is not the fireplace that you guys last saw when you were here.

0:28:150:28:18

Behind the 1940s or '50s fireplace,

0:28:180:28:20

we found this lovely original Georgian fireplace.

0:28:200:28:23

We haven't touched that.

0:28:230:28:24

That is exactly how it was the day it was built.

0:28:240:28:26

The only thing we have changed is we put a new fire basket in

0:28:260:28:29

and a new hearth. Think it's a lovely feature.

0:28:290:28:32

We are really glad we did it, and everybody loves an open fire.

0:28:320:28:34

Regarding some of the features, we've actually managed to bring

0:28:340:28:37

a lot of them back that were completely hidden,

0:28:370:28:39

that had been patched up and covered over the years. For example,

0:28:390:28:42

a lot of lovely beams, timber beams, that we've brought back.

0:28:420:28:45

A lot of exposed stonework that was covered over that we've brought back

0:28:450:28:48

into the building that is now on show that wasn't on show before.

0:28:480:28:50

I'm very pleased with the way the cottage looks.

0:28:500:28:52

It's a very subtle renovation. I don't like bling.

0:28:520:28:55

I think what we've done is brought back a lot of the original character

0:28:550:28:58

of the old building while adding to it in a very subtle way.

0:28:580:29:01

Latterly, Paul has been working on a property in Islington

0:29:010:29:04

for two days a week,

0:29:040:29:06

making the transformation here in just five and a half months

0:29:060:29:09

all the more impressive.

0:29:090:29:11

I could have done it quicker if we'd thrown more labour at the job,

0:29:110:29:14

but I've done a lot myself in terms of the dirty work,

0:29:140:29:16

the ripping out. So, to keep the cost down,

0:29:160:29:19

it actually made the job take a little bit longer.

0:29:190:29:22

I suppose that's one of the benefits of working for yourself.

0:29:220:29:26

The budget was going to be £130,000,

0:29:260:29:29

but that was for a two-storey extension.

0:29:290:29:31

How did it all work out in the end?

0:29:310:29:34

We've spent in total £78,500.

0:29:340:29:37

That includes legal fees, VAT and everything to date.

0:29:370:29:42

Paul usually works on new builds, where houses are zero rated.

0:29:420:29:45

But in the case of a conversion like this one,

0:29:450:29:48

he can't claim back any of the VAT spent on it.

0:29:480:29:51

The plan for the cottage originally was

0:29:530:29:54

always to sell it as soon as possible

0:29:540:29:56

to try and get the funds back,

0:29:560:29:57

so that we can carry on and try and do it again,

0:29:570:30:00

and that is still the plan.

0:30:000:30:01

We called in two property experts to cast their eye over the conversion

0:30:020:30:06

and give us some valuations.

0:30:060:30:08

Paul's company have spent £354,500 in total on this project.

0:30:080:30:14

Was that wise?

0:30:140:30:16

Yeah, the second time inside the property for myself.

0:30:160:30:20

I really like the property.

0:30:200:30:22

A lot of renovation work has been carried out.

0:30:220:30:24

It also been extended and finished to a really, really high standard.

0:30:240:30:27

The house itself has been done very, very well, to a high standard,

0:30:270:30:31

so any buyer moving in here

0:30:310:30:33

has got nothing to do at all.

0:30:330:30:35

They are as impressed with this place as I am,

0:30:350:30:38

but will Paul and Toby have made a profit on their investment of

0:30:380:30:42

£354,500?

0:30:420:30:44

If the property was placed on the open market for sale

0:30:440:30:47

I would suggest an asking price of £435,000,

0:30:470:30:50

with hopefully a sale price close to that figure.

0:30:500:30:53

Currently, if it was to be put on the open market,

0:30:530:30:56

I would expect you to achieve around £440,000.

0:30:560:30:59

That would be fabulous. If we can achieve something close to that,

0:30:590:31:02

that would be a good job for us.

0:31:020:31:04

That's a potential growth of £85,500 before taxes and expenses.

0:31:040:31:09

So, are there any final thoughts?

0:31:090:31:11

If I could have my time again,

0:31:130:31:14

I would probably work harder at school,

0:31:140:31:16

go to university and become a dentist.

0:31:160:31:20

Well, there's been a good job done

0:31:200:31:21

in filling in the cracks in this mortar.

0:31:210:31:24

Today, I'm in the town of Rainham, Kent.

0:31:300:31:33

It's a small town with a population of just over 6,000,

0:31:330:31:37

but, with good commuter links to London, it is fast becoming

0:31:370:31:40

a great option if you are looking for some peace and quiet from

0:31:400:31:43

the hustle and bustle of the capital.

0:31:430:31:46

The house I'm here to see is in the Parkwood estate.

0:31:460:31:49

The most recent property explosion in the town came in the 1960s,

0:31:510:31:55

when this very large estate was built and, at the time,

0:31:550:31:59

it was the largest in Europe.

0:31:590:32:01

Well, this is where I'm going to find a three-bed bungalow,

0:32:010:32:04

which went to auction with a guide price of 165,000 to 175,000.

0:32:040:32:10

It's quite leafy here, but that is a big tree, for sure.

0:32:110:32:16

I think I'd want to get some advice from a tree surgeon and check out

0:32:160:32:19

if there isn't a Tree Preservation Order on it.

0:32:190:32:21

That can mean it's a criminal offence to damage it in any way.

0:32:210:32:26

Now, I've got a feeling this bungalow

0:32:260:32:28

is going to be incredibly dated. Oh, or incredibly pink.

0:32:280:32:32

It's very marshmallow-like everywhere, soft powder pink,

0:32:320:32:36

but we've got some great space, a rather large kitchen.

0:32:360:32:39

Quite a lot of units in there.

0:32:390:32:40

Maybe think about taking some of those out,

0:32:400:32:42

because I don't think you need them all.

0:32:420:32:44

We've got a dining room, which could be bedroom three.

0:32:440:32:47

That's what it says in the catalogue.

0:32:470:32:49

Really nice-sized lounge through there

0:32:490:32:51

and then through into this unusual,

0:32:510:32:54

sort of, partitioned corridor bit, with another pink door,

0:32:540:32:58

and you've got a separate loo, separate bathroom.

0:32:580:33:01

Great big bedroom here,

0:33:010:33:02

which is really nice to see, with loads of light,

0:33:020:33:05

and another bedroom here.

0:33:050:33:07

So, what would I do to really improve this place?

0:33:070:33:10

Well, for starters,

0:33:100:33:12

I'd have to sort out this rather awkward corridor area.

0:33:120:33:15

Take out the partition bit at the top, get rid of the door,

0:33:150:33:18

just to open up the corridor.

0:33:180:33:20

I would also think about taking this wall out here between

0:33:200:33:24

the loo and the bathroom, to have one really nice big space,

0:33:240:33:28

because I think that would work well. And also, get rid of

0:33:280:33:30

some of those kitchen units to have a kitchen-diner,

0:33:300:33:33

and I would definitely call the dining room bedroom number three.

0:33:330:33:38

Oh, yeah, and paint the place. It's just too pink for me!

0:33:380:33:42

# Pink it's my new obsession

0:33:430:33:47

# Yeah

0:33:470:33:49

# Pink it's not even a question... #

0:33:490:33:53

My obsession isn't pink, though.

0:33:530:33:55

Mine is knocking walls down, and I think changing

0:33:550:33:58

the configurations and updating the kitchen and bathroom

0:33:580:34:01

would make this popular with a wide range of buyers and renters.

0:34:010:34:05

After that, it's just about the decoration, really.

0:34:050:34:10

Now, in the 1970s and '80s, textured ceilings were all the rage.

0:34:100:34:14

Oh, yes, they were so popular. But then in the 21st century...

0:34:140:34:19

Well, they've fallen well and truly out of favour, out of fashion.

0:34:190:34:22

But it's not just about their look, but unfortunately,

0:34:220:34:26

they can actually be dangerous too.

0:34:260:34:28

This is because their coating

0:34:280:34:30

sometimes can contain white asbestos to strengthen it and,

0:34:300:34:34

if the asbestos is disturbed,

0:34:340:34:36

it can be hazardous to your health,

0:34:360:34:38

so no trying to sand it down and making it flat.

0:34:380:34:41

Sanding it down, hanging up light fittings and so on

0:34:420:34:45

could release the dangerous asbestos fibres.

0:34:450:34:48

-# Said enough is enough

-Enough is enough

0:34:500:34:52

# Oh, buddy and I'm rough stuff... #

0:34:520:34:56

It's the textured plaster made before the mid-'80s

0:34:560:34:59

that may contain asbestos.

0:34:590:35:01

You can have a sample tested to be sure, but if asbestos is present

0:35:010:35:04

I recommend getting advice from

0:35:040:35:07

a plasterer accredited in asbestos awareness.

0:35:070:35:10

But something a little less treacherous is the garden.

0:35:100:35:12

Now, at the back there's a small but well-appointed little plot

0:35:120:35:16

that I'm sure would satisfy any green-fingered buyer.

0:35:160:35:19

So all in all, a great three-bed bungalow,

0:35:190:35:23

but would it be a sound investment?

0:35:230:35:25

We invited along a local estate agent to get his opinion.

0:35:260:35:30

Rainham's a good area. It's very popular at the moment.

0:35:340:35:37

We've got a lot of people working, moving out of London to the area.

0:35:370:35:40

You've got good schooling, easy access to shops, bus routes.

0:35:400:35:43

Very popular as well. Ticks a lot of boxes.

0:35:430:35:46

'Location is key, so that all sounds good, assuming this bungalow,

0:35:460:35:51

'guided between £165,000-£170,000, got a good update.

0:35:510:35:56

'So, would it be a hare or a tortoise on the open market?'

0:35:560:36:00

This bungalow could resell for in the region of anything from

0:36:020:36:05

£220,000-£225,000.

0:36:050:36:08

'And if rented out?'

0:36:080:36:10

Once renovated, this bungalow could achieve in the region of anything

0:36:100:36:13

up to about £850 per calendar month.

0:36:130:36:16

Well, if you like the colour pink, this bungalow is good to go,

0:36:160:36:20

but somehow I don't think it will be to everybody's taste. Saying that,

0:36:200:36:24

I don't think it'll take too much work to modernise it

0:36:240:36:26

and create a lovely home for someone.

0:36:260:36:29

So, who could see the wood for the trees?

0:36:290:36:31

Let's head to the auction and find out.

0:36:310:36:33

Lot 62. Detached bungalow for improvement.

0:36:340:36:38

Guide of 165 to 170.

0:36:380:36:41

Where are we starting on this one?

0:36:410:36:42

155, can I say?

0:36:420:36:44

Give me 150, then.

0:36:440:36:45

It's got to be worth 150 and I shan't go below that.

0:36:450:36:48

150. And two. 152.

0:36:480:36:51

152. And 154. 154 and 6.

0:36:510:36:55

'Well, this lot came up towards the end of auction day,

0:36:550:36:58

'and while interest seemed slow initially, it did pick up momentum,

0:36:580:37:02

'and we rejoin when the bids had reached £176,000.'

0:37:020:37:07

176. 178. 178.

0:37:070:37:11

To the gentlemen at the front. 178 for either of you?

0:37:110:37:14

178, I'm looking for. Are we all done, then, at...?

0:37:140:37:18

178. 180. 180.

0:37:180:37:22

I'll take one if it helps.

0:37:220:37:23

179. 179. 180. 180, may I say?

0:37:230:37:28

£179,000, I have.

0:37:280:37:30

Are we all done at 179,000?

0:37:300:37:33

I shall sell for the first time...

0:37:330:37:36

Second time... Third and final time, at £179,000...

0:37:360:37:40

Sold, sir, and the bidder's card number?

0:37:400:37:43

'And with the successful bid of 179,000

0:37:480:37:51

'was Simon on the right and Stephen on the left.

0:37:510:37:54

'Workmates in the IT industry,

0:37:540:37:56

'they've been friends for over 20 years and decided to join forces

0:37:560:38:00

'for their first property investment.'

0:38:000:38:03

-Stephen and Simon, congratulations.

-Thank you.

0:38:030:38:06

So, I want to know the story about who wanted to buy this

0:38:060:38:09

and who ended up bidding for it on the day?

0:38:090:38:11

Well, it's... It was all his idea and...

0:38:110:38:14

-My fault.

-And this is a better return on money, sort of thing,

0:38:140:38:18

and he says, "Put it into a house. Do it up, and push it on."

0:38:180:38:22

He's seen great TV programmes. He's seen how easy it is to do it.

0:38:220:38:24

-He's totally blaming you.

-Oh, absolutely.

0:38:240:38:26

Especially at the end when I said, "Don't bid any more."

0:38:260:38:29

-And he bid one more bid.

-Yes!

-So we actually got this.

0:38:290:38:31

So we tossed the coin and he bidded, because it was better, I thought.

0:38:310:38:34

With both of us bidding, it might be a bit of a mess, so we lumped it on him.

0:38:340:38:37

Well, you've got it in the film.

0:38:370:38:39

You'll see that just when we get around whatever the figure is at,

0:38:390:38:42

he is sort of going,

0:38:420:38:43

"I think we should cut it out." And I suddenly panic and I go,

0:38:430:38:45

"What did you say?"

0:38:450:38:47

And at this point the auctioneer's up there saying,

0:38:470:38:49

"Well, do you want to?" And I'm saying,

0:38:490:38:51

"What do you mean you want to stop? Yes, carry on!"

0:38:510:38:54

I go back to him and then he says, "Sold."

0:38:540:38:56

And the other person had folded out.

0:38:560:38:58

So, did you find it, you know, completely pressurising on the day?

0:38:580:39:01

-He did.

-Were you under pressure?

-He was...so much pressure.

0:39:010:39:04

I was a mess for days afterwards.

0:39:040:39:05

He was shaking. He was shaking really, really badly.

0:39:050:39:07

-I-I...

-Because he's spending my money.

0:39:070:39:09

Yes, he's... He's the major investor.

0:39:090:39:11

We are 60-40, so he spent more money than...

0:39:110:39:14

Yeah, I'll say he is a bit responsible.

0:39:140:39:16

OK, so, let's talk about the price you paid. Happy with that?

0:39:160:39:19

We were going to go to 180, and we got it for 179.

0:39:190:39:23

OK, so, you've got a spare £1,000,

0:39:230:39:26

and you ended up having to spend that spare £1,000, didn't you?

0:39:260:39:29

-What happened? Tell me what happened.

-We read the legal pack,

0:39:290:39:32

as instructed on Homes Under The Hammer,

0:39:320:39:34

but unfortunately we missed Section 18, Subsection 2, or something,

0:39:340:39:39

that said we had to pay the vendor's solicitor's fees.

0:39:390:39:41

-Which was?

-About £1,000.

0:39:410:39:43

So, there you go, there is your £1,000 snapped up straight away.

0:39:430:39:46

-Yeah.

-Well, they do get ten out of ten for reading the legal pack.

0:39:460:39:50

However, the packs can be very detailed and complex so, if you can,

0:39:500:39:54

it is safer to have your solicitor have a look at it

0:39:540:39:56

before the auction.

0:39:560:39:58

Luckily, in this instance, it hasn't broken the bank.

0:39:580:40:02

But while we're on the subject of money...

0:40:020:40:04

So, how much have you got to spend here?

0:40:040:40:06

-What's your budget?

-We reckon we've got £12,000

0:40:060:40:10

that we can actually spend on the place itself.

0:40:100:40:14

That will then leave us with the profit

0:40:140:40:16

that we expect to get from the place as well.

0:40:160:40:18

OK, so you want to spend £12,000 here.

0:40:180:40:20

-Yeah.

-Thinking about the profit you might want to make,

0:40:200:40:23

what do you think you can do for £12,000

0:40:230:40:24

that would really make this place sell quickly?

0:40:240:40:27

The biggest thing I think is the kitchen and bathroom.

0:40:270:40:29

-Yes.

-I think that sells all properties.

0:40:290:40:32

-Yeah.

-The bathroom at the moment is a separate bath and loo,

0:40:320:40:35

and we're going to take the wall in between and close off one of

0:40:350:40:39

the doors, cos it's got so many doors in this place,

0:40:390:40:41

so lose a door or two if we can, and then the kitchen.

0:40:410:40:43

We spent quite a lot of time looking at kitchens with various companies.

0:40:430:40:47

We're going to try and keep it looking fresh and not too modern,

0:40:470:40:50

cos round here most people we have seen are of an age...

0:40:500:40:54

-Yeah. Yeah.

-We don't want things that are all electronic and stuff.

0:40:540:40:57

-Yeah.

-So a nice, sensible kitchen.

0:40:570:40:59

Yeah, I'd go for something really classic.

0:40:590:41:01

-Yes.

-That's the word. Classic.

0:41:010:41:02

-Yes.

-Classic. Classic rather than fashionable.

-Yes.

-Absolutely.

0:41:020:41:05

At this point, I'd like to say, can we just look up?

0:41:050:41:07

-Ding!

-Yes, absolutely.

0:41:070:41:10

His... His sister doesn't believe we should change it.

0:41:100:41:13

-And why is that?

-Cos it's too much like hard work.

0:41:130:41:16

-OK, that's... That will definitely put some people off.

-Me too.

0:41:160:41:19

It reminds me of a sort of top of a wedding cake.

0:41:190:41:22

Meringue time, yes. And, interestingly,

0:41:220:41:24

every room has been done differently.

0:41:240:41:26

-Yes.

-There's a different pattern in every room so...

-Yes.

0:41:260:41:30

I hate it, to be honest.

0:41:300:41:31

'Simon and Stephen

0:41:340:41:35

'hope they can make the most of their £12,000 budget

0:41:350:41:37

'by doing most of the work here themselves,

0:41:370:41:40

'as well as support from family and friends,

0:41:400:41:42

'including Simon's brother-in-law, who is a builder by trade.

0:41:420:41:46

'Always helps when you've got a trade in the family.'

0:41:460:41:49

So, it seems like you guys are going to have lots of fun along the way.

0:41:510:41:53

-Am I right in saying that?

-Hopefully. Yes, we think so.

0:41:530:41:56

We're going to look after this project and think of it as

0:41:560:41:58

-another adventure that we've been on and enjoy it.

-Yes.

0:41:580:42:01

Guys, it's been lovely meeting you both today.

0:42:010:42:03

-And you, too.

-I'm really excited to see the outcome

0:42:030:42:05

-and to see what that kitchen looks like.

-So do I.

0:42:050:42:07

-How classic it's going to be.

-Yes.

-Yes.

0:42:070:42:10

Yeah, it's going to be a mystery to all of us until it happens.

0:42:100:42:13

-Thank you very much, indeed.

-Thank you.

-Thank you.

0:42:130:42:15

Thank you very much.

0:42:150:42:17

So, they've been friends for over 20 years, but how will Stephen

0:42:170:42:21

and Simon get on during their first renovation project together?

0:42:210:42:25

Now, it sounds like they've got a good support network around them,

0:42:250:42:28

but will this double act still be chums at the end of all the work?

0:42:280:42:32

Join me later on in the programme

0:42:320:42:34

and you can find out how they get on.

0:42:340:42:36

Well, one of our buyers has won the race.

0:42:400:42:42

Yeah, but will the other two cross the finishing line?

0:42:420:42:44

Yes, or will they come up short? Let's find out.

0:42:440:42:47

Let's head back now to up-and-coming Croydon in south London,

0:42:480:42:52

where I visited this three-bedroom end terrace property

0:42:520:42:55

with a guide price of £180,000.

0:42:550:42:58

Inside, it was a spacious family home,

0:42:580:43:01

and it wasn't in bad condition at all.

0:43:010:43:04

Downstairs looked fine, apart from the wallpaper.

0:43:040:43:08

I prefer my roses in the garden.

0:43:080:43:10

And upstairs, the bathroom is OK, but the three bedrooms...

0:43:100:43:16

Well, two of them have been knocked through

0:43:160:43:18

to create this open-plan bedroom design.

0:43:180:43:22

Open-plan bedrooms? Uh-uh, not for me.

0:43:220:43:25

But, all in all, nothing worrying, except, the devil, as ever,

0:43:250:43:29

is in the detail.

0:43:290:43:31

This house was of non-standard construction,

0:43:310:43:34

which can make getting a mortgage tricky,

0:43:340:43:36

but the real danger lay in the legal pack.

0:43:360:43:39

This house was a probate sale.

0:43:390:43:42

There are complications, perhaps.

0:43:420:43:44

It's really important that you know exactly what the legal circumstances

0:43:440:43:48

of that probate situation are.

0:43:480:43:51

Researching this detail would have revealed that

0:43:510:43:53

the title deeds were not yet registered in the name of

0:43:530:43:56

the person overseeing the deceased person's affairs,

0:43:560:43:59

something buyers Kavita and Kevin were not aware of

0:43:590:44:04

when they paid £256,000 for the place.

0:44:040:44:07

-So, did you read the legal pack before the auction?

-No.

-Oh, right.

0:44:070:44:11

So, we had to cash-buy the house.

0:44:110:44:12

-Cash-buy the house.

-Oh, wow, that could have been a problem.

0:44:120:44:15

-Yeah.

-Yeah.

0:44:150:44:16

So, with a budget of £5,000

0:44:160:44:19

and setting themselves a timescale of three to four weeks,

0:44:190:44:22

would Kavita and Kevin have any more surprises?

0:44:220:44:25

We returned six weeks later to have a look.

0:44:250:44:28

# Bang bang into the room

0:44:300:44:32

# I know you want it... #

0:44:320:44:34

As you can see, the place has been freshened up a bit.

0:44:350:44:38

In the living room,

0:44:380:44:40

the tatty carpet has been ripped out

0:44:400:44:41

and replaced with contemporary laminate flooring.

0:44:410:44:44

Although, I can see that flowery wallpaper has survived.

0:44:440:44:48

They've also closed off the archway from the kitchen,

0:44:480:44:51

making the two spaces separate.

0:44:510:44:53

Through here, they've made a few minor changes,

0:44:530:44:56

but as the kitchen was in decent condition before,

0:44:560:44:59

Kavita and Kevin have chosen to give it a clean

0:44:590:45:02

and a fresh coat of paint.

0:45:020:45:04

In the hallway, the WC has had a similar treatment,

0:45:040:45:07

brightening the space up a bit.

0:45:070:45:10

Upstairs, the previous open-plan double bedroom has been closed off,

0:45:100:45:13

and this alcove created, giving the smaller bedroom more space.

0:45:130:45:17

Like the downstairs,

0:45:170:45:19

it's been freshly painted and new flooring laid -

0:45:190:45:22

simple changes but to good effect.

0:45:220:45:24

The bathroom, like the kitchen, was in good condition before,

0:45:260:45:29

so again they've only made simple alterations

0:45:290:45:31

with the addition of new flooring.

0:45:310:45:33

Out back, and the garden has been tidied up. As you can see,

0:45:340:45:38

there are still a few finishing touches to be done,

0:45:380:45:40

but once the slabbing is finished, it will be a low-maintenance space

0:45:400:45:43

appropriate for a rental property.

0:45:430:45:46

And speaking of which, Kavita and Kevin already have tenants lined up,

0:45:460:45:49

and they've been vocal during the renovation.

0:45:490:45:53

We decided to close the bit through the kitchen and lounge,

0:45:530:45:57

because the tenant wanted it this way.

0:45:570:45:59

I think it's easier for them, so as we require...

0:45:590:46:03

We are not living in there, so we closed it.

0:46:030:46:05

-Yeah.

-'So I wonder if keeping that wallpaper was their doing too.'

0:46:050:46:10

Yeah, the wallpaper stayed, I'm afraid,

0:46:100:46:13

because we showed it to the tenant when they came

0:46:130:46:15

and they seemed to like it,

0:46:150:46:17

so I said, "OK." They wanted it left so we left it.

0:46:170:46:19

'Each to their own, I guess.

0:46:200:46:22

'Kevin was responsible for project managing the renovation

0:46:220:46:25

'and did much of the work himself with the help of some builders,

0:46:250:46:28

'so how did he manage that budget of £5,000?'

0:46:280:46:34

Yeah, on the project we spent £5,000-£6,000.

0:46:340:46:37

'That takes their total spend on the property to around £272,000.

0:46:370:46:43

'But what about the timescale they set of three to four weeks?'

0:46:430:46:46

We went slightly over with the timescale, because, each time

0:46:480:46:51

we thought the work was done,

0:46:510:46:53

there was something else little, here and there, cropped up -

0:46:530:46:56

like we needed to move the boiler from where it was,

0:46:560:46:59

to be able to be certified.

0:46:590:47:01

The gas certificate wasn't good enough,

0:47:010:47:03

-so it took another two weeks. Yeah.

-Yeah.

0:47:030:47:06

'So, a little over their original estimate, but with tenants lined up

0:47:060:47:10

'the house will start generating money soon.

0:47:100:47:14

'But will Kavita and Kevin have turned a profit?

0:47:140:47:18

'We invited along two local estate agents to find out.

0:47:180:47:22

'Let's start with the one that visited last time.'

0:47:220:47:25

I think the property is looking good.

0:47:260:47:28

They could have spent a little bit more on the refurb,

0:47:280:47:31

however, they've still got a good potential for rent,

0:47:310:47:33

and they will be able to achieve a good rent.

0:47:330:47:35

The selling points of the property are that it's got a downstairs WC,

0:47:350:47:38

an upstairs bathroom, three good-sized bedrooms,

0:47:380:47:40

a good-sized garden and it's neutral throughout.

0:47:400:47:44

'With a property like this, because it is not the standard construction,

0:47:440:47:48

'we are looking at a reduced value, for the simple reason that

0:47:480:47:52

'it reduces the amount of buyers that are able to buy'

0:47:520:47:55

a property like this, because they can't get a mortgage and, also

0:47:550:47:59

cash buyers are looking for a reduced amount.

0:47:590:48:02

'Sounds like we'd better get those valuations

0:48:030:48:05

'and see if Kavita and Kevin

0:48:050:48:07

'can make a return on their £272,000 investment.

0:48:070:48:11

'Let's start with sales.'

0:48:110:48:13

If this property was of a standard construction,

0:48:140:48:18

you'd probably be looking at a value of around about 350,

0:48:180:48:21

around that sort of price range.

0:48:210:48:23

Because it is construction, and as I've said,

0:48:230:48:25

it's going to affect the value,

0:48:250:48:27

I would probably value the property at around that 250-270 mark.

0:48:270:48:31

I think it has a strong bearing on it.

0:48:310:48:33

Cash buyers are looking for a discounted rate.

0:48:330:48:37

'The other agent suggests a resale valuation of £290,000-£300,000,

0:48:370:48:42

'as he believes that, because of demand in the area,

0:48:420:48:45

'it could fetch that higher price regardless of the structure.'

0:48:450:48:49

Well, we were expecting it not to be very high,

0:48:490:48:52

because it's not a standard construction.

0:48:520:48:54

With the value of the house,

0:48:540:48:56

it's a bit lower than the other,

0:48:560:48:59

but we want to keep it for a couple of years, that's why...

0:48:590:49:03

-Yeah.

-For it to pick up in value.

0:49:030:49:06

And then we could...

0:49:060:49:08

Anyway, we're not losing out, so...

0:49:080:49:10

'Kavita seems happy that they are not losing out,

0:49:100:49:14

'as they always intended to rent, and they have tenants lined up.

0:49:140:49:17

'But what kind of rent should they expect?'

0:49:170:49:20

I believe, if this property was to be put on the market

0:49:200:49:23

for rental purposes, it would achieve in the region of

0:49:230:49:26

£1,350-£1,400 per calendar month.

0:49:260:49:28

There is a huge demand for rental properties like this.

0:49:280:49:31

It would probably fetch around £1,450 per calendar month.

0:49:310:49:36

-That is what we were expecting.

-Yeah, we were expecting that.

0:49:360:49:40

'Using that top figure of 1,450,

0:49:400:49:43

'that would be a yield of just over 6%.

0:49:430:49:46

'However, Kavita and Kevin

0:49:460:49:48

'bought this with an eye on regeneration of the area,

0:49:480:49:51

'and the eventual capital gains it might make them.

0:49:510:49:54

'And with the possible pitfalls this property had, they've done well.

0:49:540:49:57

'So, two properties under their belt,

0:49:570:50:00

'what would they do differently next time?'

0:50:000:50:02

We are going to make sure that we have

0:50:050:50:07

the legal pack checked over by a solicitor.

0:50:070:50:10

It's worthwhile paying a little bit of money

0:50:100:50:13

-just to not be in this position.

-Yeah.

0:50:130:50:15

Let's head back now to the town of Rainham, Kent,

0:50:200:50:23

where I visited this three-bedroom bungalow,

0:50:230:50:25

with a colour scheme that...

0:50:250:50:26

Well, it wasn't to everybody's taste.

0:50:260:50:29

It's very marshmallow-like everywhere, soft powder pink.

0:50:300:50:34

# Well, I'm tickled pink

0:50:340:50:36

# I'm tickled pink

0:50:360:50:37

# I'm feeling blue... #

0:50:370:50:39

I wasn't tickled by the pink, but that's easily sorted.

0:50:390:50:42

But less so the textured ceilings, which were everywhere.

0:50:420:50:46

It all needed modernising,

0:50:460:50:48

but with a guide price of £165,000-£170,000,

0:50:480:50:51

I thought it had bags full of investment potential.

0:50:510:50:54

Long-term friends Simon and Stephen thought so too,

0:50:560:50:59

buying up the bungalow at auction for £179,000 -

0:50:590:51:03

just £1,000 short of their budget on the day. Though, unfortunately,

0:51:030:51:07

that extra £1,000 didn't last very long.

0:51:070:51:11

-Tell me what happened.

-We read the legal pack,

0:51:110:51:13

as instructed on Homes Under The Hammer,

0:51:130:51:15

but, unfortunately, we missed

0:51:150:51:17

Section 18, Subsection 2 or something,

0:51:170:51:20

that said we had to pay the vendor's solicitor's fees.

0:51:200:51:22

-Which was?

-About £1,000.

0:51:220:51:24

-So, there you go, there's your £1,000 snapped up straightaway.

-Yeah.

0:51:240:51:27

But rather than lick their wounds, they plan to crack on with this,

0:51:270:51:31

their first property renovation.

0:51:310:51:33

-The biggest thing I think is the kitchen and bathroom.

-Yes.

0:51:330:51:36

We're going to try and keep it looking fresh

0:51:360:51:38

and not too modern, cos, round here,

0:51:380:51:40

most people we have seen are of an age.

0:51:400:51:42

-Yeah, I'd go for something really classic.

-Yes.

0:51:420:51:44

That's the word. Classic. Classic rather than fashionable.

0:51:440:51:47

-Yes.

-Absolutely.

0:51:470:51:49

So, setting themselves a budget of £12,000

0:51:490:51:52

and aiming to be complete in three months,

0:51:520:51:55

would Simon and Stephen achieve that classic look?

0:51:550:51:58

We returned five months later to see how they got on.

0:51:580:52:01

As you can see, Simon and Steve have ripped out that dated,

0:52:100:52:13

old kitchen and replaced it with these bright

0:52:130:52:15

new units and modern appliances.

0:52:150:52:18

Bang up-to-date, but classic-looking, I'd say.

0:52:180:52:20

As planned, the separate toilet has been knocked through

0:52:200:52:23

to create this generous bathroom.

0:52:230:52:25

They've obviously put a lot of thought into this room,

0:52:250:52:28

making the most of the space in here,

0:52:280:52:30

installing a bathtub and a shower unit.

0:52:300:52:33

Again, like the kitchen, it's been finished to a really high standard.

0:52:330:52:37

The only other structural change was in the hallway,

0:52:400:52:43

where the boys have removed the old partitioning door

0:52:430:52:45

giving this house a much better flow.

0:52:450:52:48

Through into the lounge,

0:52:500:52:51

it's goodbye marshmallow-pink and textured ceilings,

0:52:510:52:54

and hello to neutral colours and smooth surfaces,

0:52:540:52:58

thanks to the endeavours of an experienced plasterer.

0:52:580:53:01

It's more of the same in the three bedrooms -

0:53:030:53:06

replastered, repainted and new carpets.

0:53:060:53:09

The house was in great condition before,

0:53:090:53:11

but these decorative changes have had a dramatic effect.

0:53:110:53:14

Now, outside, the boys have been doing some investigation work.

0:53:140:53:19

They wanted to do a checkup for the towering tree in the front garden,

0:53:190:53:23

which, by the way, Stephen has named Jennifer.

0:53:230:53:27

After a consultation with the tree surgeon

0:53:270:53:30

and the local council's TPO officer,

0:53:300:53:32

they could see no wrong with her and,

0:53:320:53:34

at the grand old age of about 100 years,

0:53:340:53:37

she is actually in great health,

0:53:370:53:39

meaning she's no danger to the property.

0:53:390:53:42

This was Simon and Stephen's first project together

0:53:420:53:45

and, it's fair to say, it's been a steep learning curve.

0:53:450:53:48

Yeah, the bathroom was quite a big project,

0:53:480:53:51

because we had to convert two rooms into one room and, of course,

0:53:510:53:53

that meant the wall in the corridor had to come down.

0:53:530:53:57

So, for the first time ever, we built a stud wall, which was fun.

0:53:570:54:00

-Yup. That's...

-Nearly the right size.

0:54:000:54:02

'And the mishaps didn't stop there.'

0:54:030:54:06

Oh, that bath.

0:54:070:54:09

-Erm... Four, five?

-That, yeah... That bath has been fitted

0:54:090:54:12

fully fitted in there,

0:54:120:54:15

finished and out again - four times, so...

0:54:150:54:19

This song kept running through my mind - Nothing Is Easy.

0:54:190:54:23

# Nothing is easy

0:54:230:54:24

# Though time gets you worrying, my friend, it's OK... #

0:54:240:54:28

'There you go, Simon, just for you.

0:54:280:54:30

'So, was the kitchen any easier?'

0:54:300:54:33

The oven housing, this one over here...

0:54:330:54:36

-Four times.

-Four times,

0:54:360:54:37

fully in, fitted and then...

0:54:370:54:40

-Smug look on our faces and...

-Yeah.

-"Oh, Steve!"

-And then...

0:54:400:54:43

It was, "Oh, Simon!"

0:54:430:54:46

'Yeah, you see, I'm sensing a pattern, here.

0:54:460:54:48

'Never mind - practice does make perfect, as this shows.

0:54:480:54:52

'Simon and Stephen were also very fortunate to get lots of help

0:54:530:54:57

'from friends, family and professionals,

0:54:570:55:00

'so did keeping to that £12,000 budget

0:55:000:55:02

'fall into the "Nothing Is Easy" category?'

0:55:020:55:05

The budget, I think we got in...

0:55:050:55:07

Cos I did a calculation last night and it was about £12,500.

0:55:070:55:11

One of them was stupidity, which we mentioned earlier, which was the...

0:55:110:55:16

having to pay the seller's legal fees, which was a pain.

0:55:160:55:19

And the other over-budget thing was, we went to town on the bathroom,

0:55:190:55:23

so we didn't go for the cheapest bath we could have done.

0:55:230:55:25

-No.

-And we've gone for quite a quality bath and a quality shower,

0:55:250:55:28

and that's where the actual money went.

0:55:280:55:31

'That takes their total spend on the property to £191,500.

0:55:320:55:37

'Now, the boys originally set themselves

0:55:390:55:41

'a timescale of three months, but having to fit the renovation in

0:55:410:55:44

'around their busy work schedules,

0:55:440:55:46

'it ended up taking closer to five months,

0:55:460:55:48

'though, time well spent, I'd say.

0:55:480:55:51

'So, will they have made a profit?

0:55:550:55:58

'We invited along

0:55:580:56:00

'two local estate agents to find out.'

0:56:000:56:02

In comparison to how I saw the property before,

0:56:020:56:04

obviously it's a big improvement.

0:56:040:56:05

It needed everything doing to it when we saw it before,

0:56:050:56:07

so, yeah, everything looks brand-new.

0:56:070:56:09

It looks like it's been finished to a good standard.

0:56:090:56:12

In this location, bungalows are very popular,

0:56:120:56:14

on the basis that there is a shortage of them.

0:56:140:56:16

There's not too many about

0:56:160:56:17

where you do get a lot of developers normally go up

0:56:170:56:19

and build up on them, but they've kept this all on one level,

0:56:190:56:22

so it's going to be generally appealing to the older generation.

0:56:220:56:25

I think it does work for the modern living, this property,

0:56:250:56:27

and they've done the layout nicely.

0:56:270:56:29

They've got rid of some of the doors and, I think, you know,

0:56:290:56:33

it's easy to walk round,

0:56:330:56:34

which is what you really want it to be.

0:56:340:56:36

'The agents are impressed with the renovation and think, rental-wise,

0:56:370:56:41

'the bungalow could bring in between £800-£900 per calendar month.

0:56:410:56:46

'Now, that top figure giving a yield of just over 5.5%.

0:56:460:56:50

'But what could their £191,500 investment translate into for

0:56:500:56:56

'the resale market?'

0:56:560:56:58

This property, in the current market,

0:56:580:57:00

I believe will achieve anywhere between £280,000-£300,000.

0:57:000:57:03

I think this property, on the sales market,

0:57:030:57:05

will achieve in the region of £300,000.

0:57:050:57:09

-I need to hold him.

-I can buy a leopard!

0:57:090:57:11

'OK, well, the heart wants what the heart wants, I suppose.

0:57:130:57:16

'But will these two be changing their spots by becoming more serious

0:57:160:57:20

'property developers in the future?'

0:57:200:57:22

It has been surprising how we worked well as a double act,

0:57:240:57:28

where somebody comes up with a problem,

0:57:280:57:30

and the other person comes up with the solution,

0:57:300:57:33

and it has been surprising how well that has worked.

0:57:330:57:36

Surprising. Yeah, it's been good, and it...

0:57:360:57:38

-He's only sworn at me once.

-Yes.

-And it was my fault.

0:57:380:57:41

He deserved everything of it, yes.

0:57:410:57:43

So, yeah, we'll work together and another project is...

0:57:430:57:46

-As soon as we can.

-Yeah.

0:57:460:57:48

I hope these stories have given you something to think about.

0:57:510:57:53

Yeah, and I hope you're heading to your next auction right now.

0:57:530:57:56

If not, don't worry,

0:57:560:57:58

cos we'll be back with more Homes Under The Hammer for you next time.

0:57:580:58:01

-Goodbye.

-Bye-bye.

-Goodbye.

0:58:010:58:03

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