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Hello, and welcome. When you're thinking about buying property, | 0:00:02 | 0:00:05 | |
the choices can sometimes be overwhelming. | 0:00:05 | 0:00:07 | |
Yeah, don't get bogged down. | 0:00:07 | 0:00:08 | |
Get yourself a clear head and get your priorities right. | 0:00:08 | 0:00:11 | |
Yes, find an area, set a budget, and of course, do your research. | 0:00:11 | 0:00:15 | |
And of course, | 0:00:15 | 0:00:17 | |
you might find just what you're looking for under the hammer. | 0:00:17 | 0:00:20 | |
Many different properties go under the hammer every week. | 0:00:46 | 0:00:49 | |
Yes, some are ready to move into, | 0:00:49 | 0:00:51 | |
others require just a little bit more tender loving care. | 0:00:51 | 0:00:53 | |
Those are the ones we love. | 0:00:53 | 0:00:55 | |
So, let's see how our buyers got on on today's programme. | 0:00:55 | 0:01:00 | |
In Tilton on the Hill, | 0:01:00 | 0:01:01 | |
the kitchen in this charming stone cottage is in need of a rethink. | 0:01:01 | 0:01:05 | |
I'd be inclined to knock it out, give yourself a bit of an extension. | 0:01:05 | 0:01:08 | |
While in Croydon, south London, | 0:01:10 | 0:01:12 | |
some legal complications with this end terrace need investigating. | 0:01:12 | 0:01:16 | |
It's definitely something that your solicitor should check out. | 0:01:16 | 0:01:20 | |
And in the town of Rainham in Kent, this bungalow needs paint, | 0:01:20 | 0:01:24 | |
and lots of it. | 0:01:24 | 0:01:25 | |
It's very marshmallow-like everywhere, soft powder pink. | 0:01:25 | 0:01:29 | |
All these properties were bought at auction. | 0:01:31 | 0:01:33 | |
We find out who got them and how much they paid | 0:01:33 | 0:01:35 | |
-when these homes went under the hammer. -Sold. Well bought. | 0:01:35 | 0:01:39 | |
Don't you just sometimes crave the quiet life? | 0:01:44 | 0:01:46 | |
The chocolate-box cottage, the village green? | 0:01:46 | 0:01:50 | |
Well, you could always move to Tilton on the Hill. | 0:01:50 | 0:01:52 | |
It's convenient for pork pies, | 0:01:52 | 0:01:54 | |
being just eight miles from Melton Mowbray. | 0:01:54 | 0:01:56 | |
What a beautiful day in a really nice village on | 0:02:01 | 0:02:03 | |
the outskirts of Leicester. | 0:02:03 | 0:02:05 | |
It's this building I'm here to see - | 0:02:05 | 0:02:08 | |
a stone-built cottage with a guide price of £220,000. | 0:02:08 | 0:02:13 | |
It has three bedrooms, and it is beautiful on the inside. | 0:02:13 | 0:02:16 | |
But is it beautiful on the inside? Let's have a look. | 0:02:16 | 0:02:19 | |
OK, we've got a small porch-way area, and right in front | 0:02:23 | 0:02:27 | |
we've got a shower sort of wet room there and a toilet. | 0:02:27 | 0:02:31 | |
They are a bit of a strange shape because they are on the corner. | 0:02:31 | 0:02:34 | |
How you'd reconfigure that, I'm not sure. | 0:02:34 | 0:02:37 | |
And it does say to me that if there is a toilet downstairs, | 0:02:37 | 0:02:39 | |
there may not be one upstairs. | 0:02:39 | 0:02:41 | |
Up a step into the kitchen, which is a little tight. | 0:02:41 | 0:02:46 | |
But not too bad. | 0:02:46 | 0:02:48 | |
You'd have to start again in here. | 0:02:48 | 0:02:49 | |
Got the old-fashioned cooker there. | 0:02:49 | 0:02:52 | |
Stairs up to the bedrooms. | 0:02:52 | 0:02:54 | |
A little bit of storage. | 0:02:54 | 0:02:56 | |
I'm thinking to myself you need some more space. | 0:02:56 | 0:02:59 | |
I'd be inclined to knock it out and give yourself a bit of an extension. | 0:02:59 | 0:03:03 | |
Get that extra needed space in and around the kitchen, | 0:03:03 | 0:03:06 | |
and a bit of a family room as well. Let's see what else there is. | 0:03:06 | 0:03:09 | |
So, as I'm coming through, | 0:03:11 | 0:03:12 | |
I can see there is this small lean-to just there | 0:03:12 | 0:03:15 | |
looking out onto the back garden. | 0:03:15 | 0:03:16 | |
You can actually feel the heat coming in off that. | 0:03:16 | 0:03:20 | |
Into the lounge living area, with a real fireplace there - | 0:03:20 | 0:03:24 | |
what I expected in a village cottage. | 0:03:24 | 0:03:27 | |
A little bit of central heating as well. | 0:03:27 | 0:03:29 | |
And I can see through that window, that's the road, | 0:03:29 | 0:03:32 | |
which is the front of the house, so if you were looking to extend, | 0:03:32 | 0:03:35 | |
your only option would be to go into the back garden. | 0:03:35 | 0:03:39 | |
Sometimes extending into the garden | 0:03:42 | 0:03:44 | |
can really compromise the outside space. | 0:03:44 | 0:03:46 | |
But in this case, there is plenty of land with this cottage. | 0:03:46 | 0:03:50 | |
This is a conservation area, so by definition, | 0:03:56 | 0:03:59 | |
development will be restricted. | 0:03:59 | 0:04:01 | |
However, there is an old outbuilding | 0:04:01 | 0:04:03 | |
that is currently being used as a bin store. | 0:04:03 | 0:04:06 | |
I think this could be developed to be part of the downstairs space. | 0:04:06 | 0:04:11 | |
# Standing in the garden | 0:04:12 | 0:04:14 | |
# Your little garden... # | 0:04:15 | 0:04:17 | |
And there is more to explore back inside. | 0:04:21 | 0:04:23 | |
Upstairs we have got three bedrooms. | 0:04:24 | 0:04:26 | |
Bedroom one there, which is a really big bedroom, actually. | 0:04:28 | 0:04:31 | |
Wasn't expecting that. | 0:04:31 | 0:04:32 | |
Across the hall, we've got bedroom two, which is quite small. | 0:04:32 | 0:04:36 | |
Along a long corridor, wasted space there. | 0:04:36 | 0:04:40 | |
In the bedroom three, which is not only small, | 0:04:40 | 0:04:43 | |
it's a strange shape as well. | 0:04:43 | 0:04:46 | |
Now, there is no bathroom, no toilet upstairs. | 0:04:46 | 0:04:48 | |
So, for me, it's crying out, | 0:04:48 | 0:04:50 | |
"Turn this into your family bathroom up here," | 0:04:50 | 0:04:53 | |
and if you are thinking of doing that extension, | 0:04:53 | 0:04:55 | |
don't just extend the kitchen - maybe extend above as well, | 0:04:55 | 0:04:59 | |
which will give you your bedroom back | 0:04:59 | 0:05:01 | |
so you can have three bedrooms, | 0:05:01 | 0:05:02 | |
bathroom upstairs and extra living space. | 0:05:02 | 0:05:05 | |
So, odd-shaped rooms are everywhere here, | 0:05:05 | 0:05:08 | |
but some space could definitely be put to better use. | 0:05:08 | 0:05:10 | |
# But I've got a blank space, baby | 0:05:10 | 0:05:14 | |
# And I'll write your name. # | 0:05:14 | 0:05:16 | |
We called in a property expert from the auction house which sold the | 0:05:21 | 0:05:24 | |
property to get his valuations | 0:05:24 | 0:05:26 | |
and opinions on extending. | 0:05:26 | 0:05:28 | |
It's a good-sized plot, so there's plenty of scope for extension. | 0:05:29 | 0:05:33 | |
However, it is in a conservation area, | 0:05:33 | 0:05:35 | |
so you would have to be a little bit careful on the materials | 0:05:35 | 0:05:38 | |
that are used to extend the property. It would probably | 0:05:38 | 0:05:41 | |
have to be in keeping with the surrounding area of local stone | 0:05:41 | 0:05:44 | |
and possibly slate roofs. | 0:05:44 | 0:05:45 | |
With a guide price of £220,000, | 0:05:47 | 0:05:50 | |
what scope is there to modernise and make a profit? | 0:05:50 | 0:05:53 | |
If it was modernised, | 0:05:53 | 0:05:54 | |
I'd expect the valuation to be somewhere in the region of 325,000. | 0:05:54 | 0:05:58 | |
However, if it was extended as well to probably make | 0:05:58 | 0:06:01 | |
a four-bedroom property, then the valuation probably would be | 0:06:01 | 0:06:05 | |
somewhere in the region of £450,000. | 0:06:05 | 0:06:07 | |
So, with a guide price of £220,000, extension or not, | 0:06:07 | 0:06:11 | |
there is certainly money to be made here. | 0:06:11 | 0:06:15 | |
But I reckon a house like this in a conservation area | 0:06:15 | 0:06:18 | |
could eat away at any potential profit | 0:06:18 | 0:06:20 | |
and this might become a money pit. | 0:06:20 | 0:06:23 | |
What could it fetch on the rental market? | 0:06:23 | 0:06:25 | |
Once the property is fully modernised, | 0:06:25 | 0:06:28 | |
I'd expect the rental to be in the region of £900 per calendar month. | 0:06:28 | 0:06:31 | |
If the property was extended to provide four bedrooms, | 0:06:31 | 0:06:35 | |
then I would expect that rental income to increase | 0:06:35 | 0:06:38 | |
to around £1,200 per calendar month. | 0:06:38 | 0:06:40 | |
This could be a beautiful family home in some amazing surroundings, | 0:06:42 | 0:06:46 | |
but it's just a little too small inside. | 0:06:46 | 0:06:49 | |
If it were mine, I'd look to extend, | 0:06:49 | 0:06:51 | |
which would give you that much needed extra space. | 0:06:51 | 0:06:54 | |
Let's see who saw the potential when it went under the hammer. | 0:06:54 | 0:06:57 | |
Lot number six. | 0:06:57 | 0:06:59 | |
Beautiful stone three-bedroom character property. | 0:06:59 | 0:07:02 | |
Who will start me off on the guide at 220, may I say? | 0:07:02 | 0:07:05 | |
218. 216. 216 is bid. | 0:07:06 | 0:07:10 | |
We're away at 216,000. 218, sir. | 0:07:10 | 0:07:14 | |
And 20, on my right. | 0:07:14 | 0:07:16 | |
'Having reached the guide price, the bids continue in £1,000 steps. | 0:07:16 | 0:07:20 | |
'We rejoin at £275,000.' | 0:07:20 | 0:07:22 | |
275. 276. 277. | 0:07:24 | 0:07:28 | |
Shakes his head. For the first time at £276,000. | 0:07:28 | 0:07:33 | |
The second time at £276,000. | 0:07:33 | 0:07:36 | |
Third and final time, if we are all done with it? | 0:07:36 | 0:07:38 | |
Sold. It's yours, sir. Well bought. | 0:07:38 | 0:07:41 | |
'Paying a whopping 56 grand over the guide price was Toby. | 0:07:41 | 0:07:45 | |
'He's the financial brains of a company with Paul, | 0:07:45 | 0:07:48 | |
'also at the auction. | 0:07:48 | 0:07:50 | |
'Their 276 grand bid secured the cottage, | 0:07:50 | 0:07:54 | |
'and it was the building brains of the company Paul | 0:07:54 | 0:07:56 | |
'who met me back at the property to tell me his plans.' | 0:07:56 | 0:08:00 | |
-Paul, nice to meet you. How are you? And congratulations. -Thank you. | 0:08:00 | 0:08:03 | |
-So tell us about the auction. How was it? -Expensive. | 0:08:03 | 0:08:06 | |
Didn't go our way. We were hoping to bag a bargain. | 0:08:09 | 0:08:12 | |
And we had somebody who really wanted it the same as us, | 0:08:12 | 0:08:15 | |
and that has pushed us up a bit. | 0:08:15 | 0:08:16 | |
So it puts pressure on us now for | 0:08:16 | 0:08:18 | |
the budget in the construction costs, | 0:08:18 | 0:08:19 | |
to try and keep that under control. | 0:08:19 | 0:08:21 | |
Why this particular property in this area? | 0:08:21 | 0:08:24 | |
It's... We've got a background more in new build. | 0:08:24 | 0:08:26 | |
We are trying to pick up a single... | 0:08:26 | 0:08:28 | |
We're a building company - a single building plot. | 0:08:28 | 0:08:30 | |
Couldn't find any. At the moment they are all overpriced. | 0:08:30 | 0:08:33 | |
And so we've looked for a bit of a doer-upper. | 0:08:33 | 0:08:35 | |
It's a new venture for you? | 0:08:35 | 0:08:36 | |
It is. I mean, I've done a lot of work for people in this kind of | 0:08:36 | 0:08:39 | |
environment, working for somebody. | 0:08:39 | 0:08:41 | |
Could be working for you on a refurb, barn conversion, extension, whatever. | 0:08:41 | 0:08:45 | |
But this is the first time as a company | 0:08:45 | 0:08:46 | |
-we've taken on this kind of job. -If you're buying land, | 0:08:46 | 0:08:49 | |
-do you build on that land to rent or to sell again? -For sales. | 0:08:49 | 0:08:53 | |
No, we can't afford to rent. We have to shift it on, | 0:08:53 | 0:08:55 | |
and we'll try and shift this on as quickly as we can. | 0:08:55 | 0:08:57 | |
How are you going to change it? | 0:08:57 | 0:08:59 | |
This is going to be a subtle renovation of the original cottage. | 0:08:59 | 0:09:02 | |
The stonework needs restoration. We'll put back timber windows. | 0:09:02 | 0:09:05 | |
To get our money back because, you know, | 0:09:05 | 0:09:07 | |
we've got to get the money back. | 0:09:07 | 0:09:08 | |
We're going to have to put a modest extension | 0:09:08 | 0:09:11 | |
to gain some extra bedrooms | 0:09:11 | 0:09:12 | |
and some extra accommodation space on the ground floor. | 0:09:12 | 0:09:14 | |
Big living kitchen with French doors overlooking the garden | 0:09:14 | 0:09:17 | |
and then hopefully another one/two bedrooms upstairs. | 0:09:17 | 0:09:20 | |
Assuming the planning permission goes through, which is always... | 0:09:20 | 0:09:23 | |
-Planning is always an issue. -And takes time. Puts time on your... | 0:09:23 | 0:09:26 | |
Yes, takes a lot of time. It does. We've got an existing garage - | 0:09:26 | 0:09:29 | |
we don't know whether to convert that into another room. Again, budget depending, | 0:09:29 | 0:09:32 | |
that'll give us a bit more space on the ground floor as well. | 0:09:32 | 0:09:35 | |
-Yeah, of course. -Possibly an oak frame garage if we can afford it, | 0:09:35 | 0:09:37 | |
but that isn't... That's looking doubtful at the moment. | 0:09:37 | 0:09:40 | |
-Talking of purse strings... -Yeah. -What is your budget, sir? | 0:09:40 | 0:09:43 | |
Well, we always talk ex-VAT, builders, | 0:09:43 | 0:09:45 | |
and I've done deed sale costs, | 0:09:45 | 0:09:47 | |
and we're looking at something around 112 plus vat. | 0:09:47 | 0:09:51 | |
-So we are looking about 130 grand. -Yes, and that's... | 0:09:51 | 0:09:53 | |
Which is a lot of money. It's the VAT that kills us. | 0:09:53 | 0:09:55 | |
On the new build, you don't pay VAT. | 0:09:55 | 0:09:58 | |
Yeah. So the taxman will be happy on this one. | 0:09:58 | 0:10:00 | |
As well as no VAT on new houses, | 0:10:02 | 0:10:04 | |
VAT is zero-rated on flats | 0:10:04 | 0:10:06 | |
if they are new build or on alterations to suit people | 0:10:06 | 0:10:08 | |
with disabilities, or buildings used for charitable purposes. | 0:10:08 | 0:10:13 | |
But none of those criteria apply here. | 0:10:13 | 0:10:16 | |
The whole building - plumbing, electrics, re-plastering - | 0:10:17 | 0:10:20 | |
it's a complete shell rebuild, really. | 0:10:20 | 0:10:22 | |
-It is, isn't it? Complete overhaul. -Yeah. | 0:10:22 | 0:10:24 | |
And how long is that going to take you, fingers crossed? | 0:10:24 | 0:10:27 | |
Well, that depends whether it's my decision | 0:10:27 | 0:10:29 | |
or the planning office's decision. | 0:10:29 | 0:10:31 | |
If we were just able to crack on, | 0:10:31 | 0:10:32 | |
we'd turn it round in five, six months. | 0:10:32 | 0:10:34 | |
But we're going to be waiting for planning permission. It's a conservation area. | 0:10:34 | 0:10:38 | |
I've got the conservation officer | 0:10:38 | 0:10:39 | |
who is going to have to sign off things like the way we are doing | 0:10:39 | 0:10:42 | |
the stonework and the restoring of the outside of the building, | 0:10:42 | 0:10:45 | |
so that will slow us right down. | 0:10:45 | 0:10:46 | |
What's the best scenario, do you think, | 0:10:46 | 0:10:48 | |
if you're having to wait for planning and... | 0:10:48 | 0:10:50 | |
-Within a year. That much difference. -That long? | 0:10:50 | 0:10:52 | |
We could take three months trying to get planning permission. | 0:10:52 | 0:10:55 | |
So, I'm going to have to drop away and go and get a job. | 0:10:55 | 0:10:58 | |
-So, if you want anything doing... -I might be looking for a job as well. | 0:10:58 | 0:11:01 | |
Pretty soon. | 0:11:01 | 0:11:03 | |
Work or lack of it might be a laughing matter now, | 0:11:04 | 0:11:07 | |
but when the recession hit, | 0:11:07 | 0:11:09 | |
it was far from humorous for Paul and the company. | 0:11:09 | 0:11:13 | |
We had a couple of big houses we'd built, lovely houses, | 0:11:13 | 0:11:15 | |
and nobody could get a mortgage. The bank wanted their money back. | 0:11:15 | 0:11:18 | |
You know, it's a story that's been heard a lot in recent years. | 0:11:18 | 0:11:20 | |
-Yeah. Of course. -So, this is us. | 0:11:20 | 0:11:22 | |
It's been a hard five years, six years, coming back, really. | 0:11:22 | 0:11:25 | |
-It is. -So, this is an important job for us. | 0:11:25 | 0:11:27 | |
The past experience of Toby and Paul demonstrates only too well problems | 0:11:27 | 0:11:31 | |
that can hit any kind of property development. | 0:11:31 | 0:11:35 | |
And even in this more buoyant market, there are issues. | 0:11:35 | 0:11:38 | |
The shortage of affordable land forcing them to change their plans. | 0:11:38 | 0:11:43 | |
There is a lot at stake for Toby and Paul, so what's the biggest worry? | 0:11:43 | 0:11:47 | |
The budget, obviously, is the big issue. | 0:11:47 | 0:11:49 | |
Whether we can get the specification that we need at | 0:11:49 | 0:11:52 | |
the high-end to get back what we need. | 0:11:52 | 0:11:54 | |
So, it's mainly the constraints of the budget. | 0:11:54 | 0:11:56 | |
The construction doesn't bother me in the slightest. | 0:11:56 | 0:11:58 | |
-I wish you all the best. -Thank you. -Good luck. -Cheers. -Good luck. | 0:11:58 | 0:12:03 | |
Paul's found himself a lovely cottage in a really nice village, | 0:12:03 | 0:12:06 | |
and I can understand why he stuck to his guns at auction. | 0:12:06 | 0:12:10 | |
But there are a few problems he has to overcome. | 0:12:10 | 0:12:13 | |
Planning permission - it's in a conservation area, | 0:12:13 | 0:12:15 | |
which may throw up a few problems. | 0:12:15 | 0:12:17 | |
And that budget of £130,000 - will it be enough? | 0:12:17 | 0:12:22 | |
You can find out later on in the programme. | 0:12:22 | 0:12:24 | |
Today I'm in Croydon, south London, | 0:12:29 | 0:12:32 | |
home to the Brit School for Performing Arts and Technology. | 0:12:32 | 0:12:36 | |
Notable alumni include Adele, Jessie J and the late Amy Winehouse. | 0:12:36 | 0:12:42 | |
# And in your way | 0:12:42 | 0:12:43 | |
# In this blue shade | 0:12:43 | 0:12:45 | |
# My tears dry on their own. # | 0:12:45 | 0:12:49 | |
With the Brit School close by, | 0:12:49 | 0:12:52 | |
many people have come to Croydon seeking fame and fortune. | 0:12:52 | 0:12:56 | |
When it comes to property, | 0:12:56 | 0:12:58 | |
it seems that people are coming here just seeking the fortune bit. | 0:12:58 | 0:13:03 | |
Croydon is widely tipped to be a real property hotspot, | 0:13:03 | 0:13:06 | |
with lots of redevelopment, including a new shopping centre. | 0:13:06 | 0:13:10 | |
So, £180,000 for this could be a really interesting opportunity. | 0:13:10 | 0:13:15 | |
Before I get into the house - | 0:13:20 | 0:13:21 | |
although I am actually into the house already - | 0:13:21 | 0:13:23 | |
I think it's worth noting that I don't think this is what they call | 0:13:23 | 0:13:27 | |
a standard construction house. | 0:13:27 | 0:13:29 | |
It's not made of brick, and it just looks wrong from the outside. | 0:13:29 | 0:13:31 | |
So, definitely some investigation needs to be required. | 0:13:31 | 0:13:34 | |
My guess is it's a wooden construction | 0:13:34 | 0:13:36 | |
or possibly concrete slab construction. | 0:13:36 | 0:13:38 | |
And that throws up issues when it comes to getting mortgages | 0:13:38 | 0:13:40 | |
and things like that, | 0:13:40 | 0:13:42 | |
which means it could just be a cash buyer purchase. Anyway, moving on to | 0:13:42 | 0:13:45 | |
what you actually find when you walk through the door, | 0:13:45 | 0:13:47 | |
standard construction or not - a kitchen. | 0:13:47 | 0:13:50 | |
Well, actually, this isn't bad. | 0:13:50 | 0:13:53 | |
Looks like it's been relatively recently refurbished, | 0:13:53 | 0:13:55 | |
and at first glance it looks a bit tatty, | 0:13:55 | 0:13:57 | |
but I think you could sort this out. | 0:13:57 | 0:13:59 | |
And it's quite a nice sized space for the house, | 0:13:59 | 0:14:02 | |
compared to what it looks like from the outside. | 0:14:02 | 0:14:04 | |
Through this little archway into your rear living room, and again, | 0:14:04 | 0:14:07 | |
not a bad size. | 0:14:07 | 0:14:09 | |
And be benefited by patio doors out there, out into the garden, | 0:14:09 | 0:14:13 | |
which would be quite nice. | 0:14:13 | 0:14:15 | |
Something slightly easier to replace - the wallpaper. | 0:14:16 | 0:14:19 | |
Not to everyone's taste. | 0:14:21 | 0:14:22 | |
It sort of comes in and out of fashion. | 0:14:22 | 0:14:24 | |
It pops in for a few months and then it's out again, thank goodness. | 0:14:24 | 0:14:28 | |
Something a little less garish, I think. | 0:14:28 | 0:14:31 | |
Well, a good sized house, and only in need of some cosmetic work. | 0:14:32 | 0:14:38 | |
# A poor man's roses | 0:14:38 | 0:14:43 | |
# Are a rich man's gold. # | 0:14:43 | 0:14:47 | |
So, what about the upstairs? | 0:14:47 | 0:14:49 | |
Well, upstairs, and again, not in bad condition. | 0:14:51 | 0:14:54 | |
Toilet and bathroom there. It's pretty serviceable, | 0:14:54 | 0:14:57 | |
especially if you're going to try and rent this place out. | 0:14:57 | 0:15:00 | |
And then three bedrooms. | 0:15:00 | 0:15:01 | |
I mean, I say three bedrooms, | 0:15:01 | 0:15:03 | |
two of them have been knocked through | 0:15:03 | 0:15:06 | |
to create this sort of open-plan bedroom design. | 0:15:06 | 0:15:09 | |
Maybe at some stage this was a master bedroom | 0:15:09 | 0:15:11 | |
and somebody had a baby or something, | 0:15:11 | 0:15:13 | |
and this is like the baby's room, so they could at least access that. | 0:15:13 | 0:15:17 | |
Not to worry, really, in terms of the layout, | 0:15:17 | 0:15:20 | |
because it's only a stud partition wall, so you can easily change that. | 0:15:20 | 0:15:24 | |
What is slightly more significant is something I haven't told you about | 0:15:24 | 0:15:27 | |
the property yet, and that is that it's a probate property, | 0:15:27 | 0:15:29 | |
as it formed part of the estate of a deceased person. | 0:15:29 | 0:15:32 | |
Now, that's not necessarily a bad thing, not necessarily a good thing. | 0:15:32 | 0:15:36 | |
There are complications, perhaps. | 0:15:36 | 0:15:38 | |
And it's really important that you know exactly what | 0:15:38 | 0:15:41 | |
the legal circumstances of that probate situation are. | 0:15:41 | 0:15:45 | |
It's probably detailed in the legal pack. | 0:15:45 | 0:15:47 | |
It's definitely something that your solicitor should check out, | 0:15:47 | 0:15:50 | |
so that at least you know one way or the other what's going on. | 0:15:50 | 0:15:53 | |
Probate, or confirmation as it is known in Scotland, | 0:15:53 | 0:15:56 | |
means that an executor is sorting out the deceased's affairs, | 0:15:56 | 0:16:01 | |
and the process can sometimes be fraught and lengthy. | 0:16:01 | 0:16:04 | |
So, despite the fact that on the face of it | 0:16:04 | 0:16:06 | |
it looks like a pretty easy doer upper, | 0:16:06 | 0:16:09 | |
you still need to do your homework. | 0:16:09 | 0:16:11 | |
Let's take a look outside. | 0:16:11 | 0:16:13 | |
Well, at the back of the property, a little garden and a garden shed. | 0:16:13 | 0:16:17 | |
But actually, here you can really see clearly that whole | 0:16:17 | 0:16:21 | |
non standard construction issue. You need to take a look at that. | 0:16:21 | 0:16:24 | |
It's not what you expect a house to look like, is it? | 0:16:24 | 0:16:27 | |
With this sort of fascia board and the pebbledash and... | 0:16:27 | 0:16:30 | |
Well, if you weren't sure before now, | 0:16:30 | 0:16:32 | |
then that certainly convinces you. | 0:16:32 | 0:16:34 | |
So, that is an issue, and all the other ones we talked about. | 0:16:34 | 0:16:37 | |
But let's come back to this whole thing | 0:16:37 | 0:16:38 | |
of what's going on in this area. | 0:16:38 | 0:16:40 | |
And when you're buying property as an investment, what is happening | 0:16:40 | 0:16:43 | |
around it is clearly one of the most important things, | 0:16:43 | 0:16:45 | |
and it doesn't get much better than here. | 0:16:45 | 0:16:47 | |
We've got masses of infrastructure being redeveloped. | 0:16:47 | 0:16:50 | |
We've got the huge great shopping centre going in. | 0:16:50 | 0:16:52 | |
You're ten minutes walk from a train station which is 20 minutes into | 0:16:52 | 0:16:55 | |
the centre of London. It's ticking a lot of investment property boxes. | 0:16:55 | 0:17:01 | |
So, I'm impressed with the potential of the place. | 0:17:01 | 0:17:04 | |
But we invited along a local estate agent to get his opinion. | 0:17:04 | 0:17:08 | |
I believe this is a good property. | 0:17:11 | 0:17:12 | |
It's got potential, and it's in a very good area. | 0:17:12 | 0:17:15 | |
If this was my property, I would keep the living room the way it is - | 0:17:15 | 0:17:19 | |
just change the way the living room looks. | 0:17:19 | 0:17:22 | |
I would update the kitchen. | 0:17:22 | 0:17:24 | |
In the upstairs bedroom, | 0:17:24 | 0:17:25 | |
I would probably block the archway or put a sliding door | 0:17:25 | 0:17:29 | |
to give the other room some more privacy. | 0:17:29 | 0:17:32 | |
'And how much would he expect renovations to cost?' | 0:17:32 | 0:17:35 | |
To get this property up to a good standard, | 0:17:35 | 0:17:37 | |
I would say you need to spend between £10-£15,000. | 0:17:37 | 0:17:41 | |
'And once renovation is complete, | 0:17:41 | 0:17:43 | |
'what does he think the resale value will be?' | 0:17:43 | 0:17:45 | |
After renovating this property, | 0:17:45 | 0:17:47 | |
I believe you'll be looking to achieve around | 0:17:47 | 0:17:50 | |
the £340,000-£350,000 mark. | 0:17:50 | 0:17:53 | |
'And what does he think you can make in rent?' | 0:17:53 | 0:17:55 | |
I believe it'll be able to achieve a rental figure of | 0:17:56 | 0:18:00 | |
£1,300-£1,400 a month, excluding bills. | 0:18:00 | 0:18:03 | |
Well, it's certainly an interesting opportunity, | 0:18:04 | 0:18:07 | |
but not without its potential problems. | 0:18:07 | 0:18:10 | |
The probate being one and the construction being the other. | 0:18:10 | 0:18:13 | |
Still, with prices going up round here, as they are, | 0:18:13 | 0:18:16 | |
I'm sure someone took a punt on it when it went under the hammer. | 0:18:16 | 0:18:19 | |
Three-bed end of terraced house. | 0:18:21 | 0:18:24 | |
Cheap lot, this. | 0:18:24 | 0:18:26 | |
I don't know, start 170, go from there? | 0:18:26 | 0:18:28 | |
170 with you. | 0:18:28 | 0:18:30 | |
175. 175. 180. | 0:18:30 | 0:18:35 | |
185. 190. 195. | 0:18:35 | 0:18:39 | |
'This was a popular lot, and bidding was fierce. | 0:18:39 | 0:18:42 | |
'We rejoin as bidding reached 262,000.' | 0:18:42 | 0:18:47 | |
262, madam. | 0:18:47 | 0:18:49 | |
264. 264, sir. | 0:18:49 | 0:18:52 | |
264. 266. 265? | 0:18:52 | 0:18:57 | |
Try and help, might be a psychological barrier. | 0:18:57 | 0:19:00 | |
265. 266? | 0:19:00 | 0:19:02 | |
267. 267, elsewhere? | 0:19:03 | 0:19:08 | |
266, first time, second time, third and last time, if you're all done. | 0:19:08 | 0:19:14 | |
Sold, 266. | 0:19:16 | 0:19:18 | |
'And with the successful bid of £266,000 | 0:19:20 | 0:19:25 | |
'were couple Kavita and Kevin. | 0:19:25 | 0:19:27 | |
'I met up with them back at the house to find out | 0:19:27 | 0:19:30 | |
'what they had in store for the place.' | 0:19:30 | 0:19:32 | |
Kavita, Kevin, great to meet you both. | 0:19:32 | 0:19:34 | |
-Hi, great to meet you too. -Congratulations. | 0:19:34 | 0:19:37 | |
-Thank you. -Tell me why you wanted to buy this house. | 0:19:37 | 0:19:40 | |
We want it for investment purposes, as houses are scarce these days, | 0:19:40 | 0:19:46 | |
so we wanted to bag one as, you know, the prices are still low. | 0:19:46 | 0:19:52 | |
Is this something you've done before? | 0:19:52 | 0:19:54 | |
Yes, this is our second now, buy to let property. | 0:19:54 | 0:19:57 | |
But the first one in auction. | 0:19:57 | 0:19:59 | |
Right. So why Croydon, then? | 0:19:59 | 0:20:01 | |
Croydon, it's a lot of improvements, so big shopping centre coming, | 0:20:01 | 0:20:06 | |
the prices are going to go up soon. | 0:20:06 | 0:20:08 | |
Right. Now, what do you know about the construction of this house, | 0:20:08 | 0:20:11 | |
because I'm not so sure. | 0:20:11 | 0:20:13 | |
It's not...a conventional brick wall. | 0:20:13 | 0:20:17 | |
-I think it's timber frame, or I was told. -Yeah. | 0:20:17 | 0:20:20 | |
This house wouldn't fetch as much as a brick house would. | 0:20:20 | 0:20:24 | |
-Yeah. -Yeah. But still, if we make a profit, we make a profit. | 0:20:24 | 0:20:28 | |
Yeah, for sure. | 0:20:28 | 0:20:29 | |
Hm, I've been told this isn't a timber-framed house. | 0:20:29 | 0:20:32 | |
It's a concrete house with timber cladding, | 0:20:32 | 0:20:35 | |
which unfortunately can be more of an issue. | 0:20:35 | 0:20:38 | |
This means if they want to sell this on in the future, the likelihood is | 0:20:38 | 0:20:42 | |
they'll have to find a cash buyer. | 0:20:42 | 0:20:45 | |
However, the real problem for Kavita and Kevin | 0:20:45 | 0:20:48 | |
lies with that probate issue, | 0:20:48 | 0:20:50 | |
in that the deceased person's name was still on the title deeds | 0:20:50 | 0:20:55 | |
and not the person who had undertaken the selling of it. | 0:20:55 | 0:20:58 | |
The property is not really | 0:20:58 | 0:21:02 | |
registered in the people who are selling, their name, yet, | 0:21:02 | 0:21:05 | |
so it's a bit of problem getting a mortgage. | 0:21:05 | 0:21:09 | |
-Yeah. -Ah. | 0:21:09 | 0:21:11 | |
So, we had to cash-buy the house. | 0:21:11 | 0:21:13 | |
-Cash buy. -Oh, wow, that could have been a problem. | 0:21:13 | 0:21:15 | |
-Yeah. -Yeah, well, we managed between the two of us. | 0:21:15 | 0:21:19 | |
So, did you read the legal pack before the auction? | 0:21:19 | 0:21:22 | |
-No. -Oh, right. -It's a learning curve. | 0:21:22 | 0:21:25 | |
Quite a steep one, in this instance, | 0:21:25 | 0:21:27 | |
because had you not been able to raise the cash, | 0:21:27 | 0:21:30 | |
-you would have been in deep doo-doo. -Yes, we would be. Yeah. | 0:21:30 | 0:21:33 | |
That could have been an absolute disaster | 0:21:36 | 0:21:39 | |
had they not been able to buy the house outright. | 0:21:39 | 0:21:42 | |
A firm reminder that you should always read the legal pack. | 0:21:42 | 0:21:46 | |
But now that potential headache is out of the way, | 0:21:46 | 0:21:49 | |
I was curious to find out what they had planned for the house. | 0:21:49 | 0:21:52 | |
So, tell me what you're going to do to it. | 0:21:52 | 0:21:54 | |
Most probably, we change the flooring everywhere. | 0:21:54 | 0:21:57 | |
And then painting and decorating, do the garden. | 0:21:57 | 0:22:02 | |
Yeah, do all the tests, electric tests. | 0:22:02 | 0:22:05 | |
What about the kitchen and the bathroom? | 0:22:05 | 0:22:07 | |
Are they going to stay the same? | 0:22:07 | 0:22:08 | |
Looks like it, yes. Because I think the kitchen is not too bad. | 0:22:08 | 0:22:11 | |
Yeah, so we'll most probably leave it. | 0:22:11 | 0:22:14 | |
-OK. And then get it on the rental market? -Yes, yes. -And wallpaper? | 0:22:14 | 0:22:18 | |
-Er, a debate about the wallpaper! -This one... | 0:22:18 | 0:22:21 | |
There had been a debate, so we'll see. | 0:22:23 | 0:22:25 | |
Yeah, divides opinion, doesn't it? | 0:22:25 | 0:22:27 | |
Well, regardless of what happens to that wallpaper, the place is going | 0:22:27 | 0:22:31 | |
to be getting a face-lift to appeal to prospective renters. | 0:22:31 | 0:22:34 | |
-So, who is going to be doing the work? -Not me. Kevin. | 0:22:34 | 0:22:39 | |
I'm going to do the work, and we'll just get some professionals as well. | 0:22:39 | 0:22:43 | |
OK, what kind of jobs can you do? | 0:22:43 | 0:22:45 | |
Well, do the floorings, do the decorating. | 0:22:45 | 0:22:49 | |
So, what is the budget that you've set aside? | 0:22:49 | 0:22:51 | |
I would say around £5,000 should be enough, for painting | 0:22:51 | 0:22:56 | |
-and flooring. -And you've got your free labour here, so that's fine. | 0:22:56 | 0:23:00 | |
-Yeah. -What kind of timescale? | 0:23:00 | 0:23:02 | |
Because presumably if you want to rent it out, time is money. | 0:23:02 | 0:23:05 | |
-I think we should be... Very soon. -Very soon. | 0:23:05 | 0:23:09 | |
-If I say a week? -No! A week?! I think you're being... | 0:23:09 | 0:23:13 | |
No, I think we would say three to four weeks. | 0:23:13 | 0:23:16 | |
-Three to four weeks, OK. -A week! | 0:23:16 | 0:23:18 | |
-You'd need to start now! -He's got his overall in the car. | 0:23:18 | 0:23:21 | |
Oh, yeah, good. Right, well, | 0:23:21 | 0:23:23 | |
we better get the interview done and you can get on with it. | 0:23:23 | 0:23:25 | |
Well, listen, congratulations. Good luck with it. | 0:23:25 | 0:23:27 | |
-Look forward to seeing how you get on. -Thank you. -Thank you. | 0:23:27 | 0:23:31 | |
Well, Kavita and Kevin have clearly spotted | 0:23:31 | 0:23:34 | |
the investment opportunity of this property in Croydon. | 0:23:34 | 0:23:37 | |
However, they did break one of the Hammer golden rules | 0:23:37 | 0:23:41 | |
by not reading the legal pack, | 0:23:41 | 0:23:43 | |
and that could, and in fact probably did, | 0:23:43 | 0:23:45 | |
get them into all sorts of trouble. | 0:23:45 | 0:23:47 | |
How will they get on? You can find out later in the show. | 0:23:47 | 0:23:51 | |
Coming up, in Rainham, Kent, | 0:23:52 | 0:23:54 | |
Simon and Stephen are in the dark | 0:23:54 | 0:23:56 | |
as to how their kitchen renovation will turn out. | 0:23:56 | 0:23:59 | |
That's going to be a mystery to all of us until it happens. | 0:23:59 | 0:24:02 | |
While in Croydon, | 0:24:02 | 0:24:04 | |
Kavita and Kevin have learnt a valuable lesson for next time. | 0:24:04 | 0:24:08 | |
Make sure that we have the legal pack checked over by a solicitor. | 0:24:08 | 0:24:12 | |
Back now to the Leicestershire countryside | 0:24:19 | 0:24:21 | |
and the village of Tilton on the Hill, | 0:24:21 | 0:24:23 | |
where, if you're Hank Marvin, | 0:24:23 | 0:24:25 | |
a fish and chip van calls twice a week. | 0:24:25 | 0:24:27 | |
Across the road from St Peter's Church, | 0:24:28 | 0:24:30 | |
which dates back to 13th century, | 0:24:30 | 0:24:33 | |
I looked around this three-bed stone built cottage | 0:24:33 | 0:24:35 | |
sold at auction for £276,000, | 0:24:35 | 0:24:39 | |
which was a massive 56 grand more than the guide price. | 0:24:39 | 0:24:44 | |
Up a step into the kitchen, which is a little tight, but not too bad. | 0:24:46 | 0:24:52 | |
You'd have to start again in here. | 0:24:52 | 0:24:54 | |
I'm thinking to myself, "You need some more space." | 0:24:54 | 0:24:56 | |
I'd be inclined to knock it out, give yourself a bit of an extension. | 0:24:56 | 0:25:00 | |
Get that extra needed space in and around the kitchen, | 0:25:00 | 0:25:03 | |
and a bit of a family room as well. | 0:25:03 | 0:25:06 | |
'Business partners Toby and Paul made the highest bid on the day. | 0:25:06 | 0:25:10 | |
'Usually they focus on new build developments, | 0:25:10 | 0:25:12 | |
'but the high cost of land forced them to move on | 0:25:12 | 0:25:15 | |
'and try renovation instead. | 0:25:15 | 0:25:17 | |
'I met builder Paul to find out their plan | 0:25:17 | 0:25:19 | |
'for this cottage in a conservation area.' | 0:25:19 | 0:25:21 | |
There's going to be a subtle renovation of the original cottage. | 0:25:21 | 0:25:24 | |
The stonework needs some restoration. | 0:25:24 | 0:25:26 | |
We'll put back timber windows. | 0:25:26 | 0:25:28 | |
And to get the floor area up, to get our money back, because you know, | 0:25:28 | 0:25:32 | |
we've got to get the money back, | 0:25:32 | 0:25:34 | |
we're going to have to put a modest extension | 0:25:34 | 0:25:36 | |
to gain some extra bedrooms | 0:25:36 | 0:25:37 | |
and some extra accommodation space on the ground floor. | 0:25:37 | 0:25:40 | |
Big living kitchen with French doors overlooking the garden, | 0:25:40 | 0:25:42 | |
and then hopefully another one/two bedrooms upstairs. | 0:25:42 | 0:25:45 | |
Assuming the planning permission goes through, which is always... | 0:25:45 | 0:25:48 | |
-Planning is always an issue. -And takes time. Puts time on your... | 0:25:48 | 0:25:51 | |
Yes, takes a lot of time. It does. | 0:25:51 | 0:25:54 | |
Paul's estimated budget with a two-storey extension was 130 grand | 0:25:54 | 0:25:59 | |
and a planning-dependent timescale of up to a year. | 0:25:59 | 0:26:03 | |
We're back six months later to see if there is a two-storey extension. | 0:26:03 | 0:26:08 | |
No, but there is substantial additional accommodation | 0:26:09 | 0:26:12 | |
thanks to permitted development. As feared, | 0:26:12 | 0:26:15 | |
the planning process was taking too long for Toby and Paul, | 0:26:15 | 0:26:18 | |
so they found another way. | 0:26:18 | 0:26:20 | |
# One way or another I'm going to see you... # | 0:26:20 | 0:26:23 | |
I knew that extending to make the kitchen bigger | 0:26:24 | 0:26:27 | |
was the way to go here. It is fabulous. | 0:26:27 | 0:26:30 | |
With limestone tiles, oak worktops, bespoke carpentry windows and doors. | 0:26:30 | 0:26:36 | |
The other obvious layout change is | 0:26:44 | 0:26:46 | |
the transformation of the former bin store. | 0:26:46 | 0:26:49 | |
It's become an integrated study. | 0:26:53 | 0:26:56 | |
Paul uncovered an original doorway from the house, | 0:27:05 | 0:27:08 | |
complete with oak lintel that had been walled up. | 0:27:08 | 0:27:10 | |
Other dramatic changes have happened upstairs. | 0:27:13 | 0:27:17 | |
Paul was determined to make way for a bathroom up here. | 0:27:17 | 0:27:20 | |
# One way or another I'm going to see you... # | 0:27:22 | 0:27:25 | |
A small amount of space has been taken from bedroom two to create | 0:27:29 | 0:27:33 | |
a family bathroom, leaving a good-sized single. | 0:27:33 | 0:27:36 | |
Bedroom one has also seen a change of floor plan. | 0:27:39 | 0:27:43 | |
An en-suite shower room has been added. | 0:27:43 | 0:27:45 | |
And like the family bathroom, there is a new roof window to illuminate. | 0:27:47 | 0:27:51 | |
The third bedroom still has some unusual corner angles, | 0:27:54 | 0:27:57 | |
but everywhere has been replastered. | 0:27:57 | 0:27:59 | |
Heading back downstairs, where the old kitchen was is a new hallway. | 0:28:00 | 0:28:03 | |
Which all goes to prove, | 0:28:05 | 0:28:07 | |
if you can't get the planning permission you want, | 0:28:07 | 0:28:09 | |
there is always plenty you can still do. | 0:28:09 | 0:28:12 | |
# One way or another. # | 0:28:12 | 0:28:15 | |
This is not the fireplace that you guys last saw when you were here. | 0:28:15 | 0:28:18 | |
Behind the 1940s or '50s fireplace, | 0:28:18 | 0:28:20 | |
we found this lovely original Georgian fireplace. | 0:28:20 | 0:28:23 | |
We haven't touched that. | 0:28:23 | 0:28:24 | |
That is exactly how it was the day it was built. | 0:28:24 | 0:28:26 | |
The only thing we have changed is we put a new fire basket in | 0:28:26 | 0:28:29 | |
and a new hearth. Think it's a lovely feature. | 0:28:29 | 0:28:32 | |
We are really glad we did it, and everybody loves an open fire. | 0:28:32 | 0:28:34 | |
Regarding some of the features, we've actually managed to bring | 0:28:34 | 0:28:37 | |
a lot of them back that were completely hidden, | 0:28:37 | 0:28:39 | |
that had been patched up and covered over the years. For example, | 0:28:39 | 0:28:42 | |
a lot of lovely beams, timber beams, that we've brought back. | 0:28:42 | 0:28:45 | |
A lot of exposed stonework that was covered over that we've brought back | 0:28:45 | 0:28:48 | |
into the building that is now on show that wasn't on show before. | 0:28:48 | 0:28:50 | |
I'm very pleased with the way the cottage looks. | 0:28:50 | 0:28:52 | |
It's a very subtle renovation. I don't like bling. | 0:28:52 | 0:28:55 | |
I think what we've done is brought back a lot of the original character | 0:28:55 | 0:28:58 | |
of the old building while adding to it in a very subtle way. | 0:28:58 | 0:29:01 | |
Latterly, Paul has been working on a property in Islington | 0:29:01 | 0:29:04 | |
for two days a week, | 0:29:04 | 0:29:06 | |
making the transformation here in just five and a half months | 0:29:06 | 0:29:09 | |
all the more impressive. | 0:29:09 | 0:29:11 | |
I could have done it quicker if we'd thrown more labour at the job, | 0:29:11 | 0:29:14 | |
but I've done a lot myself in terms of the dirty work, | 0:29:14 | 0:29:16 | |
the ripping out. So, to keep the cost down, | 0:29:16 | 0:29:19 | |
it actually made the job take a little bit longer. | 0:29:19 | 0:29:22 | |
I suppose that's one of the benefits of working for yourself. | 0:29:22 | 0:29:26 | |
The budget was going to be £130,000, | 0:29:26 | 0:29:29 | |
but that was for a two-storey extension. | 0:29:29 | 0:29:31 | |
How did it all work out in the end? | 0:29:31 | 0:29:34 | |
We've spent in total £78,500. | 0:29:34 | 0:29:37 | |
That includes legal fees, VAT and everything to date. | 0:29:37 | 0:29:42 | |
Paul usually works on new builds, where houses are zero rated. | 0:29:42 | 0:29:45 | |
But in the case of a conversion like this one, | 0:29:45 | 0:29:48 | |
he can't claim back any of the VAT spent on it. | 0:29:48 | 0:29:51 | |
The plan for the cottage originally was | 0:29:53 | 0:29:54 | |
always to sell it as soon as possible | 0:29:54 | 0:29:56 | |
to try and get the funds back, | 0:29:56 | 0:29:57 | |
so that we can carry on and try and do it again, | 0:29:57 | 0:30:00 | |
and that is still the plan. | 0:30:00 | 0:30:01 | |
We called in two property experts to cast their eye over the conversion | 0:30:02 | 0:30:06 | |
and give us some valuations. | 0:30:06 | 0:30:08 | |
Paul's company have spent £354,500 in total on this project. | 0:30:08 | 0:30:14 | |
Was that wise? | 0:30:14 | 0:30:16 | |
Yeah, the second time inside the property for myself. | 0:30:16 | 0:30:20 | |
I really like the property. | 0:30:20 | 0:30:22 | |
A lot of renovation work has been carried out. | 0:30:22 | 0:30:24 | |
It also been extended and finished to a really, really high standard. | 0:30:24 | 0:30:27 | |
The house itself has been done very, very well, to a high standard, | 0:30:27 | 0:30:31 | |
so any buyer moving in here | 0:30:31 | 0:30:33 | |
has got nothing to do at all. | 0:30:33 | 0:30:35 | |
They are as impressed with this place as I am, | 0:30:35 | 0:30:38 | |
but will Paul and Toby have made a profit on their investment of | 0:30:38 | 0:30:42 | |
£354,500? | 0:30:42 | 0:30:44 | |
If the property was placed on the open market for sale | 0:30:44 | 0:30:47 | |
I would suggest an asking price of £435,000, | 0:30:47 | 0:30:50 | |
with hopefully a sale price close to that figure. | 0:30:50 | 0:30:53 | |
Currently, if it was to be put on the open market, | 0:30:53 | 0:30:56 | |
I would expect you to achieve around £440,000. | 0:30:56 | 0:30:59 | |
That would be fabulous. If we can achieve something close to that, | 0:30:59 | 0:31:02 | |
that would be a good job for us. | 0:31:02 | 0:31:04 | |
That's a potential growth of £85,500 before taxes and expenses. | 0:31:04 | 0:31:09 | |
So, are there any final thoughts? | 0:31:09 | 0:31:11 | |
If I could have my time again, | 0:31:13 | 0:31:14 | |
I would probably work harder at school, | 0:31:14 | 0:31:16 | |
go to university and become a dentist. | 0:31:16 | 0:31:20 | |
Well, there's been a good job done | 0:31:20 | 0:31:21 | |
in filling in the cracks in this mortar. | 0:31:21 | 0:31:24 | |
Today, I'm in the town of Rainham, Kent. | 0:31:30 | 0:31:33 | |
It's a small town with a population of just over 6,000, | 0:31:33 | 0:31:37 | |
but, with good commuter links to London, it is fast becoming | 0:31:37 | 0:31:40 | |
a great option if you are looking for some peace and quiet from | 0:31:40 | 0:31:43 | |
the hustle and bustle of the capital. | 0:31:43 | 0:31:46 | |
The house I'm here to see is in the Parkwood estate. | 0:31:46 | 0:31:49 | |
The most recent property explosion in the town came in the 1960s, | 0:31:51 | 0:31:55 | |
when this very large estate was built and, at the time, | 0:31:55 | 0:31:59 | |
it was the largest in Europe. | 0:31:59 | 0:32:01 | |
Well, this is where I'm going to find a three-bed bungalow, | 0:32:01 | 0:32:04 | |
which went to auction with a guide price of 165,000 to 175,000. | 0:32:04 | 0:32:10 | |
It's quite leafy here, but that is a big tree, for sure. | 0:32:11 | 0:32:16 | |
I think I'd want to get some advice from a tree surgeon and check out | 0:32:16 | 0:32:19 | |
if there isn't a Tree Preservation Order on it. | 0:32:19 | 0:32:21 | |
That can mean it's a criminal offence to damage it in any way. | 0:32:21 | 0:32:26 | |
Now, I've got a feeling this bungalow | 0:32:26 | 0:32:28 | |
is going to be incredibly dated. Oh, or incredibly pink. | 0:32:28 | 0:32:32 | |
It's very marshmallow-like everywhere, soft powder pink, | 0:32:32 | 0:32:36 | |
but we've got some great space, a rather large kitchen. | 0:32:36 | 0:32:39 | |
Quite a lot of units in there. | 0:32:39 | 0:32:40 | |
Maybe think about taking some of those out, | 0:32:40 | 0:32:42 | |
because I don't think you need them all. | 0:32:42 | 0:32:44 | |
We've got a dining room, which could be bedroom three. | 0:32:44 | 0:32:47 | |
That's what it says in the catalogue. | 0:32:47 | 0:32:49 | |
Really nice-sized lounge through there | 0:32:49 | 0:32:51 | |
and then through into this unusual, | 0:32:51 | 0:32:54 | |
sort of, partitioned corridor bit, with another pink door, | 0:32:54 | 0:32:58 | |
and you've got a separate loo, separate bathroom. | 0:32:58 | 0:33:01 | |
Great big bedroom here, | 0:33:01 | 0:33:02 | |
which is really nice to see, with loads of light, | 0:33:02 | 0:33:05 | |
and another bedroom here. | 0:33:05 | 0:33:07 | |
So, what would I do to really improve this place? | 0:33:07 | 0:33:10 | |
Well, for starters, | 0:33:10 | 0:33:12 | |
I'd have to sort out this rather awkward corridor area. | 0:33:12 | 0:33:15 | |
Take out the partition bit at the top, get rid of the door, | 0:33:15 | 0:33:18 | |
just to open up the corridor. | 0:33:18 | 0:33:20 | |
I would also think about taking this wall out here between | 0:33:20 | 0:33:24 | |
the loo and the bathroom, to have one really nice big space, | 0:33:24 | 0:33:28 | |
because I think that would work well. And also, get rid of | 0:33:28 | 0:33:30 | |
some of those kitchen units to have a kitchen-diner, | 0:33:30 | 0:33:33 | |
and I would definitely call the dining room bedroom number three. | 0:33:33 | 0:33:38 | |
Oh, yeah, and paint the place. It's just too pink for me! | 0:33:38 | 0:33:42 | |
# Pink it's my new obsession | 0:33:43 | 0:33:47 | |
# Yeah | 0:33:47 | 0:33:49 | |
# Pink it's not even a question... # | 0:33:49 | 0:33:53 | |
My obsession isn't pink, though. | 0:33:53 | 0:33:55 | |
Mine is knocking walls down, and I think changing | 0:33:55 | 0:33:58 | |
the configurations and updating the kitchen and bathroom | 0:33:58 | 0:34:01 | |
would make this popular with a wide range of buyers and renters. | 0:34:01 | 0:34:05 | |
After that, it's just about the decoration, really. | 0:34:05 | 0:34:10 | |
Now, in the 1970s and '80s, textured ceilings were all the rage. | 0:34:10 | 0:34:14 | |
Oh, yes, they were so popular. But then in the 21st century... | 0:34:14 | 0:34:19 | |
Well, they've fallen well and truly out of favour, out of fashion. | 0:34:19 | 0:34:22 | |
But it's not just about their look, but unfortunately, | 0:34:22 | 0:34:26 | |
they can actually be dangerous too. | 0:34:26 | 0:34:28 | |
This is because their coating | 0:34:28 | 0:34:30 | |
sometimes can contain white asbestos to strengthen it and, | 0:34:30 | 0:34:34 | |
if the asbestos is disturbed, | 0:34:34 | 0:34:36 | |
it can be hazardous to your health, | 0:34:36 | 0:34:38 | |
so no trying to sand it down and making it flat. | 0:34:38 | 0:34:41 | |
Sanding it down, hanging up light fittings and so on | 0:34:42 | 0:34:45 | |
could release the dangerous asbestos fibres. | 0:34:45 | 0:34:48 | |
-# Said enough is enough -Enough is enough | 0:34:50 | 0:34:52 | |
# Oh, buddy and I'm rough stuff... # | 0:34:52 | 0:34:56 | |
It's the textured plaster made before the mid-'80s | 0:34:56 | 0:34:59 | |
that may contain asbestos. | 0:34:59 | 0:35:01 | |
You can have a sample tested to be sure, but if asbestos is present | 0:35:01 | 0:35:04 | |
I recommend getting advice from | 0:35:04 | 0:35:07 | |
a plasterer accredited in asbestos awareness. | 0:35:07 | 0:35:10 | |
But something a little less treacherous is the garden. | 0:35:10 | 0:35:12 | |
Now, at the back there's a small but well-appointed little plot | 0:35:12 | 0:35:16 | |
that I'm sure would satisfy any green-fingered buyer. | 0:35:16 | 0:35:19 | |
So all in all, a great three-bed bungalow, | 0:35:19 | 0:35:23 | |
but would it be a sound investment? | 0:35:23 | 0:35:25 | |
We invited along a local estate agent to get his opinion. | 0:35:26 | 0:35:30 | |
Rainham's a good area. It's very popular at the moment. | 0:35:34 | 0:35:37 | |
We've got a lot of people working, moving out of London to the area. | 0:35:37 | 0:35:40 | |
You've got good schooling, easy access to shops, bus routes. | 0:35:40 | 0:35:43 | |
Very popular as well. Ticks a lot of boxes. | 0:35:43 | 0:35:46 | |
'Location is key, so that all sounds good, assuming this bungalow, | 0:35:46 | 0:35:51 | |
'guided between £165,000-£170,000, got a good update. | 0:35:51 | 0:35:56 | |
'So, would it be a hare or a tortoise on the open market?' | 0:35:56 | 0:36:00 | |
This bungalow could resell for in the region of anything from | 0:36:02 | 0:36:05 | |
£220,000-£225,000. | 0:36:05 | 0:36:08 | |
'And if rented out?' | 0:36:08 | 0:36:10 | |
Once renovated, this bungalow could achieve in the region of anything | 0:36:10 | 0:36:13 | |
up to about £850 per calendar month. | 0:36:13 | 0:36:16 | |
Well, if you like the colour pink, this bungalow is good to go, | 0:36:16 | 0:36:20 | |
but somehow I don't think it will be to everybody's taste. Saying that, | 0:36:20 | 0:36:24 | |
I don't think it'll take too much work to modernise it | 0:36:24 | 0:36:26 | |
and create a lovely home for someone. | 0:36:26 | 0:36:29 | |
So, who could see the wood for the trees? | 0:36:29 | 0:36:31 | |
Let's head to the auction and find out. | 0:36:31 | 0:36:33 | |
Lot 62. Detached bungalow for improvement. | 0:36:34 | 0:36:38 | |
Guide of 165 to 170. | 0:36:38 | 0:36:41 | |
Where are we starting on this one? | 0:36:41 | 0:36:42 | |
155, can I say? | 0:36:42 | 0:36:44 | |
Give me 150, then. | 0:36:44 | 0:36:45 | |
It's got to be worth 150 and I shan't go below that. | 0:36:45 | 0:36:48 | |
150. And two. 152. | 0:36:48 | 0:36:51 | |
152. And 154. 154 and 6. | 0:36:51 | 0:36:55 | |
'Well, this lot came up towards the end of auction day, | 0:36:55 | 0:36:58 | |
'and while interest seemed slow initially, it did pick up momentum, | 0:36:58 | 0:37:02 | |
'and we rejoin when the bids had reached £176,000.' | 0:37:02 | 0:37:07 | |
176. 178. 178. | 0:37:07 | 0:37:11 | |
To the gentlemen at the front. 178 for either of you? | 0:37:11 | 0:37:14 | |
178, I'm looking for. Are we all done, then, at...? | 0:37:14 | 0:37:18 | |
178. 180. 180. | 0:37:18 | 0:37:22 | |
I'll take one if it helps. | 0:37:22 | 0:37:23 | |
179. 179. 180. 180, may I say? | 0:37:23 | 0:37:28 | |
£179,000, I have. | 0:37:28 | 0:37:30 | |
Are we all done at 179,000? | 0:37:30 | 0:37:33 | |
I shall sell for the first time... | 0:37:33 | 0:37:36 | |
Second time... Third and final time, at £179,000... | 0:37:36 | 0:37:40 | |
Sold, sir, and the bidder's card number? | 0:37:40 | 0:37:43 | |
'And with the successful bid of 179,000 | 0:37:48 | 0:37:51 | |
'was Simon on the right and Stephen on the left. | 0:37:51 | 0:37:54 | |
'Workmates in the IT industry, | 0:37:54 | 0:37:56 | |
'they've been friends for over 20 years and decided to join forces | 0:37:56 | 0:38:00 | |
'for their first property investment.' | 0:38:00 | 0:38:03 | |
-Stephen and Simon, congratulations. -Thank you. | 0:38:03 | 0:38:06 | |
So, I want to know the story about who wanted to buy this | 0:38:06 | 0:38:09 | |
and who ended up bidding for it on the day? | 0:38:09 | 0:38:11 | |
Well, it's... It was all his idea and... | 0:38:11 | 0:38:14 | |
-My fault. -And this is a better return on money, sort of thing, | 0:38:14 | 0:38:18 | |
and he says, "Put it into a house. Do it up, and push it on." | 0:38:18 | 0:38:22 | |
He's seen great TV programmes. He's seen how easy it is to do it. | 0:38:22 | 0:38:24 | |
-He's totally blaming you. -Oh, absolutely. | 0:38:24 | 0:38:26 | |
Especially at the end when I said, "Don't bid any more." | 0:38:26 | 0:38:29 | |
-And he bid one more bid. -Yes! -So we actually got this. | 0:38:29 | 0:38:31 | |
So we tossed the coin and he bidded, because it was better, I thought. | 0:38:31 | 0:38:34 | |
With both of us bidding, it might be a bit of a mess, so we lumped it on him. | 0:38:34 | 0:38:37 | |
Well, you've got it in the film. | 0:38:37 | 0:38:39 | |
You'll see that just when we get around whatever the figure is at, | 0:38:39 | 0:38:42 | |
he is sort of going, | 0:38:42 | 0:38:43 | |
"I think we should cut it out." And I suddenly panic and I go, | 0:38:43 | 0:38:45 | |
"What did you say?" | 0:38:45 | 0:38:47 | |
And at this point the auctioneer's up there saying, | 0:38:47 | 0:38:49 | |
"Well, do you want to?" And I'm saying, | 0:38:49 | 0:38:51 | |
"What do you mean you want to stop? Yes, carry on!" | 0:38:51 | 0:38:54 | |
I go back to him and then he says, "Sold." | 0:38:54 | 0:38:56 | |
And the other person had folded out. | 0:38:56 | 0:38:58 | |
So, did you find it, you know, completely pressurising on the day? | 0:38:58 | 0:39:01 | |
-He did. -Were you under pressure? -He was...so much pressure. | 0:39:01 | 0:39:04 | |
I was a mess for days afterwards. | 0:39:04 | 0:39:05 | |
He was shaking. He was shaking really, really badly. | 0:39:05 | 0:39:07 | |
-I-I... -Because he's spending my money. | 0:39:07 | 0:39:09 | |
Yes, he's... He's the major investor. | 0:39:09 | 0:39:11 | |
We are 60-40, so he spent more money than... | 0:39:11 | 0:39:14 | |
Yeah, I'll say he is a bit responsible. | 0:39:14 | 0:39:16 | |
OK, so, let's talk about the price you paid. Happy with that? | 0:39:16 | 0:39:19 | |
We were going to go to 180, and we got it for 179. | 0:39:19 | 0:39:23 | |
OK, so, you've got a spare £1,000, | 0:39:23 | 0:39:26 | |
and you ended up having to spend that spare £1,000, didn't you? | 0:39:26 | 0:39:29 | |
-What happened? Tell me what happened. -We read the legal pack, | 0:39:29 | 0:39:32 | |
as instructed on Homes Under The Hammer, | 0:39:32 | 0:39:34 | |
but unfortunately we missed Section 18, Subsection 2, or something, | 0:39:34 | 0:39:39 | |
that said we had to pay the vendor's solicitor's fees. | 0:39:39 | 0:39:41 | |
-Which was? -About £1,000. | 0:39:41 | 0:39:43 | |
So, there you go, there is your £1,000 snapped up straight away. | 0:39:43 | 0:39:46 | |
-Yeah. -Well, they do get ten out of ten for reading the legal pack. | 0:39:46 | 0:39:50 | |
However, the packs can be very detailed and complex so, if you can, | 0:39:50 | 0:39:54 | |
it is safer to have your solicitor have a look at it | 0:39:54 | 0:39:56 | |
before the auction. | 0:39:56 | 0:39:58 | |
Luckily, in this instance, it hasn't broken the bank. | 0:39:58 | 0:40:02 | |
But while we're on the subject of money... | 0:40:02 | 0:40:04 | |
So, how much have you got to spend here? | 0:40:04 | 0:40:06 | |
-What's your budget? -We reckon we've got £12,000 | 0:40:06 | 0:40:10 | |
that we can actually spend on the place itself. | 0:40:10 | 0:40:14 | |
That will then leave us with the profit | 0:40:14 | 0:40:16 | |
that we expect to get from the place as well. | 0:40:16 | 0:40:18 | |
OK, so you want to spend £12,000 here. | 0:40:18 | 0:40:20 | |
-Yeah. -Thinking about the profit you might want to make, | 0:40:20 | 0:40:23 | |
what do you think you can do for £12,000 | 0:40:23 | 0:40:24 | |
that would really make this place sell quickly? | 0:40:24 | 0:40:27 | |
The biggest thing I think is the kitchen and bathroom. | 0:40:27 | 0:40:29 | |
-Yes. -I think that sells all properties. | 0:40:29 | 0:40:32 | |
-Yeah. -The bathroom at the moment is a separate bath and loo, | 0:40:32 | 0:40:35 | |
and we're going to take the wall in between and close off one of | 0:40:35 | 0:40:39 | |
the doors, cos it's got so many doors in this place, | 0:40:39 | 0:40:41 | |
so lose a door or two if we can, and then the kitchen. | 0:40:41 | 0:40:43 | |
We spent quite a lot of time looking at kitchens with various companies. | 0:40:43 | 0:40:47 | |
We're going to try and keep it looking fresh and not too modern, | 0:40:47 | 0:40:50 | |
cos round here most people we have seen are of an age... | 0:40:50 | 0:40:54 | |
-Yeah. Yeah. -We don't want things that are all electronic and stuff. | 0:40:54 | 0:40:57 | |
-Yeah. -So a nice, sensible kitchen. | 0:40:57 | 0:40:59 | |
Yeah, I'd go for something really classic. | 0:40:59 | 0:41:01 | |
-Yes. -That's the word. Classic. | 0:41:01 | 0:41:02 | |
-Yes. -Classic. Classic rather than fashionable. -Yes. -Absolutely. | 0:41:02 | 0:41:05 | |
At this point, I'd like to say, can we just look up? | 0:41:05 | 0:41:07 | |
-Ding! -Yes, absolutely. | 0:41:07 | 0:41:10 | |
His... His sister doesn't believe we should change it. | 0:41:10 | 0:41:13 | |
-And why is that? -Cos it's too much like hard work. | 0:41:13 | 0:41:16 | |
-OK, that's... That will definitely put some people off. -Me too. | 0:41:16 | 0:41:19 | |
It reminds me of a sort of top of a wedding cake. | 0:41:19 | 0:41:22 | |
Meringue time, yes. And, interestingly, | 0:41:22 | 0:41:24 | |
every room has been done differently. | 0:41:24 | 0:41:26 | |
-Yes. -There's a different pattern in every room so... -Yes. | 0:41:26 | 0:41:30 | |
I hate it, to be honest. | 0:41:30 | 0:41:31 | |
'Simon and Stephen | 0:41:34 | 0:41:35 | |
'hope they can make the most of their £12,000 budget | 0:41:35 | 0:41:37 | |
'by doing most of the work here themselves, | 0:41:37 | 0:41:40 | |
'as well as support from family and friends, | 0:41:40 | 0:41:42 | |
'including Simon's brother-in-law, who is a builder by trade. | 0:41:42 | 0:41:46 | |
'Always helps when you've got a trade in the family.' | 0:41:46 | 0:41:49 | |
So, it seems like you guys are going to have lots of fun along the way. | 0:41:51 | 0:41:53 | |
-Am I right in saying that? -Hopefully. Yes, we think so. | 0:41:53 | 0:41:56 | |
We're going to look after this project and think of it as | 0:41:56 | 0:41:58 | |
-another adventure that we've been on and enjoy it. -Yes. | 0:41:58 | 0:42:01 | |
Guys, it's been lovely meeting you both today. | 0:42:01 | 0:42:03 | |
-And you, too. -I'm really excited to see the outcome | 0:42:03 | 0:42:05 | |
-and to see what that kitchen looks like. -So do I. | 0:42:05 | 0:42:07 | |
-How classic it's going to be. -Yes. -Yes. | 0:42:07 | 0:42:10 | |
Yeah, it's going to be a mystery to all of us until it happens. | 0:42:10 | 0:42:13 | |
-Thank you very much, indeed. -Thank you. -Thank you. | 0:42:13 | 0:42:15 | |
Thank you very much. | 0:42:15 | 0:42:17 | |
So, they've been friends for over 20 years, but how will Stephen | 0:42:17 | 0:42:21 | |
and Simon get on during their first renovation project together? | 0:42:21 | 0:42:25 | |
Now, it sounds like they've got a good support network around them, | 0:42:25 | 0:42:28 | |
but will this double act still be chums at the end of all the work? | 0:42:28 | 0:42:32 | |
Join me later on in the programme | 0:42:32 | 0:42:34 | |
and you can find out how they get on. | 0:42:34 | 0:42:36 | |
Well, one of our buyers has won the race. | 0:42:40 | 0:42:42 | |
Yeah, but will the other two cross the finishing line? | 0:42:42 | 0:42:44 | |
Yes, or will they come up short? Let's find out. | 0:42:44 | 0:42:47 | |
Let's head back now to up-and-coming Croydon in south London, | 0:42:48 | 0:42:52 | |
where I visited this three-bedroom end terrace property | 0:42:52 | 0:42:55 | |
with a guide price of £180,000. | 0:42:55 | 0:42:58 | |
Inside, it was a spacious family home, | 0:42:58 | 0:43:01 | |
and it wasn't in bad condition at all. | 0:43:01 | 0:43:04 | |
Downstairs looked fine, apart from the wallpaper. | 0:43:04 | 0:43:08 | |
I prefer my roses in the garden. | 0:43:08 | 0:43:10 | |
And upstairs, the bathroom is OK, but the three bedrooms... | 0:43:10 | 0:43:16 | |
Well, two of them have been knocked through | 0:43:16 | 0:43:18 | |
to create this open-plan bedroom design. | 0:43:18 | 0:43:22 | |
Open-plan bedrooms? Uh-uh, not for me. | 0:43:22 | 0:43:25 | |
But, all in all, nothing worrying, except, the devil, as ever, | 0:43:25 | 0:43:29 | |
is in the detail. | 0:43:29 | 0:43:31 | |
This house was of non-standard construction, | 0:43:31 | 0:43:34 | |
which can make getting a mortgage tricky, | 0:43:34 | 0:43:36 | |
but the real danger lay in the legal pack. | 0:43:36 | 0:43:39 | |
This house was a probate sale. | 0:43:39 | 0:43:42 | |
There are complications, perhaps. | 0:43:42 | 0:43:44 | |
It's really important that you know exactly what the legal circumstances | 0:43:44 | 0:43:48 | |
of that probate situation are. | 0:43:48 | 0:43:51 | |
Researching this detail would have revealed that | 0:43:51 | 0:43:53 | |
the title deeds were not yet registered in the name of | 0:43:53 | 0:43:56 | |
the person overseeing the deceased person's affairs, | 0:43:56 | 0:43:59 | |
something buyers Kavita and Kevin were not aware of | 0:43:59 | 0:44:04 | |
when they paid £256,000 for the place. | 0:44:04 | 0:44:07 | |
-So, did you read the legal pack before the auction? -No. -Oh, right. | 0:44:07 | 0:44:11 | |
So, we had to cash-buy the house. | 0:44:11 | 0:44:12 | |
-Cash-buy the house. -Oh, wow, that could have been a problem. | 0:44:12 | 0:44:15 | |
-Yeah. -Yeah. | 0:44:15 | 0:44:16 | |
So, with a budget of £5,000 | 0:44:16 | 0:44:19 | |
and setting themselves a timescale of three to four weeks, | 0:44:19 | 0:44:22 | |
would Kavita and Kevin have any more surprises? | 0:44:22 | 0:44:25 | |
We returned six weeks later to have a look. | 0:44:25 | 0:44:28 | |
# Bang bang into the room | 0:44:30 | 0:44:32 | |
# I know you want it... # | 0:44:32 | 0:44:34 | |
As you can see, the place has been freshened up a bit. | 0:44:35 | 0:44:38 | |
In the living room, | 0:44:38 | 0:44:40 | |
the tatty carpet has been ripped out | 0:44:40 | 0:44:41 | |
and replaced with contemporary laminate flooring. | 0:44:41 | 0:44:44 | |
Although, I can see that flowery wallpaper has survived. | 0:44:44 | 0:44:48 | |
They've also closed off the archway from the kitchen, | 0:44:48 | 0:44:51 | |
making the two spaces separate. | 0:44:51 | 0:44:53 | |
Through here, they've made a few minor changes, | 0:44:53 | 0:44:56 | |
but as the kitchen was in decent condition before, | 0:44:56 | 0:44:59 | |
Kavita and Kevin have chosen to give it a clean | 0:44:59 | 0:45:02 | |
and a fresh coat of paint. | 0:45:02 | 0:45:04 | |
In the hallway, the WC has had a similar treatment, | 0:45:04 | 0:45:07 | |
brightening the space up a bit. | 0:45:07 | 0:45:10 | |
Upstairs, the previous open-plan double bedroom has been closed off, | 0:45:10 | 0:45:13 | |
and this alcove created, giving the smaller bedroom more space. | 0:45:13 | 0:45:17 | |
Like the downstairs, | 0:45:17 | 0:45:19 | |
it's been freshly painted and new flooring laid - | 0:45:19 | 0:45:22 | |
simple changes but to good effect. | 0:45:22 | 0:45:24 | |
The bathroom, like the kitchen, was in good condition before, | 0:45:26 | 0:45:29 | |
so again they've only made simple alterations | 0:45:29 | 0:45:31 | |
with the addition of new flooring. | 0:45:31 | 0:45:33 | |
Out back, and the garden has been tidied up. As you can see, | 0:45:34 | 0:45:38 | |
there are still a few finishing touches to be done, | 0:45:38 | 0:45:40 | |
but once the slabbing is finished, it will be a low-maintenance space | 0:45:40 | 0:45:43 | |
appropriate for a rental property. | 0:45:43 | 0:45:46 | |
And speaking of which, Kavita and Kevin already have tenants lined up, | 0:45:46 | 0:45:49 | |
and they've been vocal during the renovation. | 0:45:49 | 0:45:53 | |
We decided to close the bit through the kitchen and lounge, | 0:45:53 | 0:45:57 | |
because the tenant wanted it this way. | 0:45:57 | 0:45:59 | |
I think it's easier for them, so as we require... | 0:45:59 | 0:46:03 | |
We are not living in there, so we closed it. | 0:46:03 | 0:46:05 | |
-Yeah. -'So I wonder if keeping that wallpaper was their doing too.' | 0:46:05 | 0:46:10 | |
Yeah, the wallpaper stayed, I'm afraid, | 0:46:10 | 0:46:13 | |
because we showed it to the tenant when they came | 0:46:13 | 0:46:15 | |
and they seemed to like it, | 0:46:15 | 0:46:17 | |
so I said, "OK." They wanted it left so we left it. | 0:46:17 | 0:46:19 | |
'Each to their own, I guess. | 0:46:20 | 0:46:22 | |
'Kevin was responsible for project managing the renovation | 0:46:22 | 0:46:25 | |
'and did much of the work himself with the help of some builders, | 0:46:25 | 0:46:28 | |
'so how did he manage that budget of £5,000?' | 0:46:28 | 0:46:34 | |
Yeah, on the project we spent £5,000-£6,000. | 0:46:34 | 0:46:37 | |
'That takes their total spend on the property to around £272,000. | 0:46:37 | 0:46:43 | |
'But what about the timescale they set of three to four weeks?' | 0:46:43 | 0:46:46 | |
We went slightly over with the timescale, because, each time | 0:46:48 | 0:46:51 | |
we thought the work was done, | 0:46:51 | 0:46:53 | |
there was something else little, here and there, cropped up - | 0:46:53 | 0:46:56 | |
like we needed to move the boiler from where it was, | 0:46:56 | 0:46:59 | |
to be able to be certified. | 0:46:59 | 0:47:01 | |
The gas certificate wasn't good enough, | 0:47:01 | 0:47:03 | |
-so it took another two weeks. Yeah. -Yeah. | 0:47:03 | 0:47:06 | |
'So, a little over their original estimate, but with tenants lined up | 0:47:06 | 0:47:10 | |
'the house will start generating money soon. | 0:47:10 | 0:47:14 | |
'But will Kavita and Kevin have turned a profit? | 0:47:14 | 0:47:18 | |
'We invited along two local estate agents to find out. | 0:47:18 | 0:47:22 | |
'Let's start with the one that visited last time.' | 0:47:22 | 0:47:25 | |
I think the property is looking good. | 0:47:26 | 0:47:28 | |
They could have spent a little bit more on the refurb, | 0:47:28 | 0:47:31 | |
however, they've still got a good potential for rent, | 0:47:31 | 0:47:33 | |
and they will be able to achieve a good rent. | 0:47:33 | 0:47:35 | |
The selling points of the property are that it's got a downstairs WC, | 0:47:35 | 0:47:38 | |
an upstairs bathroom, three good-sized bedrooms, | 0:47:38 | 0:47:40 | |
a good-sized garden and it's neutral throughout. | 0:47:40 | 0:47:44 | |
'With a property like this, because it is not the standard construction, | 0:47:44 | 0:47:48 | |
'we are looking at a reduced value, for the simple reason that | 0:47:48 | 0:47:52 | |
'it reduces the amount of buyers that are able to buy' | 0:47:52 | 0:47:55 | |
a property like this, because they can't get a mortgage and, also | 0:47:55 | 0:47:59 | |
cash buyers are looking for a reduced amount. | 0:47:59 | 0:48:02 | |
'Sounds like we'd better get those valuations | 0:48:03 | 0:48:05 | |
'and see if Kavita and Kevin | 0:48:05 | 0:48:07 | |
'can make a return on their £272,000 investment. | 0:48:07 | 0:48:11 | |
'Let's start with sales.' | 0:48:11 | 0:48:13 | |
If this property was of a standard construction, | 0:48:14 | 0:48:18 | |
you'd probably be looking at a value of around about 350, | 0:48:18 | 0:48:21 | |
around that sort of price range. | 0:48:21 | 0:48:23 | |
Because it is construction, and as I've said, | 0:48:23 | 0:48:25 | |
it's going to affect the value, | 0:48:25 | 0:48:27 | |
I would probably value the property at around that 250-270 mark. | 0:48:27 | 0:48:31 | |
I think it has a strong bearing on it. | 0:48:31 | 0:48:33 | |
Cash buyers are looking for a discounted rate. | 0:48:33 | 0:48:37 | |
'The other agent suggests a resale valuation of £290,000-£300,000, | 0:48:37 | 0:48:42 | |
'as he believes that, because of demand in the area, | 0:48:42 | 0:48:45 | |
'it could fetch that higher price regardless of the structure.' | 0:48:45 | 0:48:49 | |
Well, we were expecting it not to be very high, | 0:48:49 | 0:48:52 | |
because it's not a standard construction. | 0:48:52 | 0:48:54 | |
With the value of the house, | 0:48:54 | 0:48:56 | |
it's a bit lower than the other, | 0:48:56 | 0:48:59 | |
but we want to keep it for a couple of years, that's why... | 0:48:59 | 0:49:03 | |
-Yeah. -For it to pick up in value. | 0:49:03 | 0:49:06 | |
And then we could... | 0:49:06 | 0:49:08 | |
Anyway, we're not losing out, so... | 0:49:08 | 0:49:10 | |
'Kavita seems happy that they are not losing out, | 0:49:10 | 0:49:14 | |
'as they always intended to rent, and they have tenants lined up. | 0:49:14 | 0:49:17 | |
'But what kind of rent should they expect?' | 0:49:17 | 0:49:20 | |
I believe, if this property was to be put on the market | 0:49:20 | 0:49:23 | |
for rental purposes, it would achieve in the region of | 0:49:23 | 0:49:26 | |
£1,350-£1,400 per calendar month. | 0:49:26 | 0:49:28 | |
There is a huge demand for rental properties like this. | 0:49:28 | 0:49:31 | |
It would probably fetch around £1,450 per calendar month. | 0:49:31 | 0:49:36 | |
-That is what we were expecting. -Yeah, we were expecting that. | 0:49:36 | 0:49:40 | |
'Using that top figure of 1,450, | 0:49:40 | 0:49:43 | |
'that would be a yield of just over 6%. | 0:49:43 | 0:49:46 | |
'However, Kavita and Kevin | 0:49:46 | 0:49:48 | |
'bought this with an eye on regeneration of the area, | 0:49:48 | 0:49:51 | |
'and the eventual capital gains it might make them. | 0:49:51 | 0:49:54 | |
'And with the possible pitfalls this property had, they've done well. | 0:49:54 | 0:49:57 | |
'So, two properties under their belt, | 0:49:57 | 0:50:00 | |
'what would they do differently next time?' | 0:50:00 | 0:50:02 | |
We are going to make sure that we have | 0:50:05 | 0:50:07 | |
the legal pack checked over by a solicitor. | 0:50:07 | 0:50:10 | |
It's worthwhile paying a little bit of money | 0:50:10 | 0:50:13 | |
-just to not be in this position. -Yeah. | 0:50:13 | 0:50:15 | |
Let's head back now to the town of Rainham, Kent, | 0:50:20 | 0:50:23 | |
where I visited this three-bedroom bungalow, | 0:50:23 | 0:50:25 | |
with a colour scheme that... | 0:50:25 | 0:50:26 | |
Well, it wasn't to everybody's taste. | 0:50:26 | 0:50:29 | |
It's very marshmallow-like everywhere, soft powder pink. | 0:50:30 | 0:50:34 | |
# Well, I'm tickled pink | 0:50:34 | 0:50:36 | |
# I'm tickled pink | 0:50:36 | 0:50:37 | |
# I'm feeling blue... # | 0:50:37 | 0:50:39 | |
I wasn't tickled by the pink, but that's easily sorted. | 0:50:39 | 0:50:42 | |
But less so the textured ceilings, which were everywhere. | 0:50:42 | 0:50:46 | |
It all needed modernising, | 0:50:46 | 0:50:48 | |
but with a guide price of £165,000-£170,000, | 0:50:48 | 0:50:51 | |
I thought it had bags full of investment potential. | 0:50:51 | 0:50:54 | |
Long-term friends Simon and Stephen thought so too, | 0:50:56 | 0:50:59 | |
buying up the bungalow at auction for £179,000 - | 0:50:59 | 0:51:03 | |
just £1,000 short of their budget on the day. Though, unfortunately, | 0:51:03 | 0:51:07 | |
that extra £1,000 didn't last very long. | 0:51:07 | 0:51:11 | |
-Tell me what happened. -We read the legal pack, | 0:51:11 | 0:51:13 | |
as instructed on Homes Under The Hammer, | 0:51:13 | 0:51:15 | |
but, unfortunately, we missed | 0:51:15 | 0:51:17 | |
Section 18, Subsection 2 or something, | 0:51:17 | 0:51:20 | |
that said we had to pay the vendor's solicitor's fees. | 0:51:20 | 0:51:22 | |
-Which was? -About £1,000. | 0:51:22 | 0:51:24 | |
-So, there you go, there's your £1,000 snapped up straightaway. -Yeah. | 0:51:24 | 0:51:27 | |
But rather than lick their wounds, they plan to crack on with this, | 0:51:27 | 0:51:31 | |
their first property renovation. | 0:51:31 | 0:51:33 | |
-The biggest thing I think is the kitchen and bathroom. -Yes. | 0:51:33 | 0:51:36 | |
We're going to try and keep it looking fresh | 0:51:36 | 0:51:38 | |
and not too modern, cos, round here, | 0:51:38 | 0:51:40 | |
most people we have seen are of an age. | 0:51:40 | 0:51:42 | |
-Yeah, I'd go for something really classic. -Yes. | 0:51:42 | 0:51:44 | |
That's the word. Classic. Classic rather than fashionable. | 0:51:44 | 0:51:47 | |
-Yes. -Absolutely. | 0:51:47 | 0:51:49 | |
So, setting themselves a budget of £12,000 | 0:51:49 | 0:51:52 | |
and aiming to be complete in three months, | 0:51:52 | 0:51:55 | |
would Simon and Stephen achieve that classic look? | 0:51:55 | 0:51:58 | |
We returned five months later to see how they got on. | 0:51:58 | 0:52:01 | |
As you can see, Simon and Steve have ripped out that dated, | 0:52:10 | 0:52:13 | |
old kitchen and replaced it with these bright | 0:52:13 | 0:52:15 | |
new units and modern appliances. | 0:52:15 | 0:52:18 | |
Bang up-to-date, but classic-looking, I'd say. | 0:52:18 | 0:52:20 | |
As planned, the separate toilet has been knocked through | 0:52:20 | 0:52:23 | |
to create this generous bathroom. | 0:52:23 | 0:52:25 | |
They've obviously put a lot of thought into this room, | 0:52:25 | 0:52:28 | |
making the most of the space in here, | 0:52:28 | 0:52:30 | |
installing a bathtub and a shower unit. | 0:52:30 | 0:52:33 | |
Again, like the kitchen, it's been finished to a really high standard. | 0:52:33 | 0:52:37 | |
The only other structural change was in the hallway, | 0:52:40 | 0:52:43 | |
where the boys have removed the old partitioning door | 0:52:43 | 0:52:45 | |
giving this house a much better flow. | 0:52:45 | 0:52:48 | |
Through into the lounge, | 0:52:50 | 0:52:51 | |
it's goodbye marshmallow-pink and textured ceilings, | 0:52:51 | 0:52:54 | |
and hello to neutral colours and smooth surfaces, | 0:52:54 | 0:52:58 | |
thanks to the endeavours of an experienced plasterer. | 0:52:58 | 0:53:01 | |
It's more of the same in the three bedrooms - | 0:53:03 | 0:53:06 | |
replastered, repainted and new carpets. | 0:53:06 | 0:53:09 | |
The house was in great condition before, | 0:53:09 | 0:53:11 | |
but these decorative changes have had a dramatic effect. | 0:53:11 | 0:53:14 | |
Now, outside, the boys have been doing some investigation work. | 0:53:14 | 0:53:19 | |
They wanted to do a checkup for the towering tree in the front garden, | 0:53:19 | 0:53:23 | |
which, by the way, Stephen has named Jennifer. | 0:53:23 | 0:53:27 | |
After a consultation with the tree surgeon | 0:53:27 | 0:53:30 | |
and the local council's TPO officer, | 0:53:30 | 0:53:32 | |
they could see no wrong with her and, | 0:53:32 | 0:53:34 | |
at the grand old age of about 100 years, | 0:53:34 | 0:53:37 | |
she is actually in great health, | 0:53:37 | 0:53:39 | |
meaning she's no danger to the property. | 0:53:39 | 0:53:42 | |
This was Simon and Stephen's first project together | 0:53:42 | 0:53:45 | |
and, it's fair to say, it's been a steep learning curve. | 0:53:45 | 0:53:48 | |
Yeah, the bathroom was quite a big project, | 0:53:48 | 0:53:51 | |
because we had to convert two rooms into one room and, of course, | 0:53:51 | 0:53:53 | |
that meant the wall in the corridor had to come down. | 0:53:53 | 0:53:57 | |
So, for the first time ever, we built a stud wall, which was fun. | 0:53:57 | 0:54:00 | |
-Yup. That's... -Nearly the right size. | 0:54:00 | 0:54:02 | |
'And the mishaps didn't stop there.' | 0:54:03 | 0:54:06 | |
Oh, that bath. | 0:54:07 | 0:54:09 | |
-Erm... Four, five? -That, yeah... That bath has been fitted | 0:54:09 | 0:54:12 | |
fully fitted in there, | 0:54:12 | 0:54:15 | |
finished and out again - four times, so... | 0:54:15 | 0:54:19 | |
This song kept running through my mind - Nothing Is Easy. | 0:54:19 | 0:54:23 | |
# Nothing is easy | 0:54:23 | 0:54:24 | |
# Though time gets you worrying, my friend, it's OK... # | 0:54:24 | 0:54:28 | |
'There you go, Simon, just for you. | 0:54:28 | 0:54:30 | |
'So, was the kitchen any easier?' | 0:54:30 | 0:54:33 | |
The oven housing, this one over here... | 0:54:33 | 0:54:36 | |
-Four times. -Four times, | 0:54:36 | 0:54:37 | |
fully in, fitted and then... | 0:54:37 | 0:54:40 | |
-Smug look on our faces and... -Yeah. -"Oh, Steve!" -And then... | 0:54:40 | 0:54:43 | |
It was, "Oh, Simon!" | 0:54:43 | 0:54:46 | |
'Yeah, you see, I'm sensing a pattern, here. | 0:54:46 | 0:54:48 | |
'Never mind - practice does make perfect, as this shows. | 0:54:48 | 0:54:52 | |
'Simon and Stephen were also very fortunate to get lots of help | 0:54:53 | 0:54:57 | |
'from friends, family and professionals, | 0:54:57 | 0:55:00 | |
'so did keeping to that £12,000 budget | 0:55:00 | 0:55:02 | |
'fall into the "Nothing Is Easy" category?' | 0:55:02 | 0:55:05 | |
The budget, I think we got in... | 0:55:05 | 0:55:07 | |
Cos I did a calculation last night and it was about £12,500. | 0:55:07 | 0:55:11 | |
One of them was stupidity, which we mentioned earlier, which was the... | 0:55:11 | 0:55:16 | |
having to pay the seller's legal fees, which was a pain. | 0:55:16 | 0:55:19 | |
And the other over-budget thing was, we went to town on the bathroom, | 0:55:19 | 0:55:23 | |
so we didn't go for the cheapest bath we could have done. | 0:55:23 | 0:55:25 | |
-No. -And we've gone for quite a quality bath and a quality shower, | 0:55:25 | 0:55:28 | |
and that's where the actual money went. | 0:55:28 | 0:55:31 | |
'That takes their total spend on the property to £191,500. | 0:55:32 | 0:55:37 | |
'Now, the boys originally set themselves | 0:55:39 | 0:55:41 | |
'a timescale of three months, but having to fit the renovation in | 0:55:41 | 0:55:44 | |
'around their busy work schedules, | 0:55:44 | 0:55:46 | |
'it ended up taking closer to five months, | 0:55:46 | 0:55:48 | |
'though, time well spent, I'd say. | 0:55:48 | 0:55:51 | |
'So, will they have made a profit? | 0:55:55 | 0:55:58 | |
'We invited along | 0:55:58 | 0:56:00 | |
'two local estate agents to find out.' | 0:56:00 | 0:56:02 | |
In comparison to how I saw the property before, | 0:56:02 | 0:56:04 | |
obviously it's a big improvement. | 0:56:04 | 0:56:05 | |
It needed everything doing to it when we saw it before, | 0:56:05 | 0:56:07 | |
so, yeah, everything looks brand-new. | 0:56:07 | 0:56:09 | |
It looks like it's been finished to a good standard. | 0:56:09 | 0:56:12 | |
In this location, bungalows are very popular, | 0:56:12 | 0:56:14 | |
on the basis that there is a shortage of them. | 0:56:14 | 0:56:16 | |
There's not too many about | 0:56:16 | 0:56:17 | |
where you do get a lot of developers normally go up | 0:56:17 | 0:56:19 | |
and build up on them, but they've kept this all on one level, | 0:56:19 | 0:56:22 | |
so it's going to be generally appealing to the older generation. | 0:56:22 | 0:56:25 | |
I think it does work for the modern living, this property, | 0:56:25 | 0:56:27 | |
and they've done the layout nicely. | 0:56:27 | 0:56:29 | |
They've got rid of some of the doors and, I think, you know, | 0:56:29 | 0:56:33 | |
it's easy to walk round, | 0:56:33 | 0:56:34 | |
which is what you really want it to be. | 0:56:34 | 0:56:36 | |
'The agents are impressed with the renovation and think, rental-wise, | 0:56:37 | 0:56:41 | |
'the bungalow could bring in between £800-£900 per calendar month. | 0:56:41 | 0:56:46 | |
'Now, that top figure giving a yield of just over 5.5%. | 0:56:46 | 0:56:50 | |
'But what could their £191,500 investment translate into for | 0:56:50 | 0:56:56 | |
'the resale market?' | 0:56:56 | 0:56:58 | |
This property, in the current market, | 0:56:58 | 0:57:00 | |
I believe will achieve anywhere between £280,000-£300,000. | 0:57:00 | 0:57:03 | |
I think this property, on the sales market, | 0:57:03 | 0:57:05 | |
will achieve in the region of £300,000. | 0:57:05 | 0:57:09 | |
-I need to hold him. -I can buy a leopard! | 0:57:09 | 0:57:11 | |
'OK, well, the heart wants what the heart wants, I suppose. | 0:57:13 | 0:57:16 | |
'But will these two be changing their spots by becoming more serious | 0:57:16 | 0:57:20 | |
'property developers in the future?' | 0:57:20 | 0:57:22 | |
It has been surprising how we worked well as a double act, | 0:57:24 | 0:57:28 | |
where somebody comes up with a problem, | 0:57:28 | 0:57:30 | |
and the other person comes up with the solution, | 0:57:30 | 0:57:33 | |
and it has been surprising how well that has worked. | 0:57:33 | 0:57:36 | |
Surprising. Yeah, it's been good, and it... | 0:57:36 | 0:57:38 | |
-He's only sworn at me once. -Yes. -And it was my fault. | 0:57:38 | 0:57:41 | |
He deserved everything of it, yes. | 0:57:41 | 0:57:43 | |
So, yeah, we'll work together and another project is... | 0:57:43 | 0:57:46 | |
-As soon as we can. -Yeah. | 0:57:46 | 0:57:48 | |
I hope these stories have given you something to think about. | 0:57:51 | 0:57:53 | |
Yeah, and I hope you're heading to your next auction right now. | 0:57:53 | 0:57:56 | |
If not, don't worry, | 0:57:56 | 0:57:58 | |
cos we'll be back with more Homes Under The Hammer for you next time. | 0:57:58 | 0:58:01 | |
-Goodbye. -Bye-bye. -Goodbye. | 0:58:01 | 0:58:03 |