Episode 17 Homes Under the Hammer


Episode 17

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Transcript


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Hello and welcome to the programme.

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Now, you might not fancy a big old project to renovate.

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No, but you can always start small

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and build up to something much grander if you wish.

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Yes, and you might find that perfect property at your local auction.

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The auction room can seem fast and furious.

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It's all about preparation, research and holding your nerve.

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So, let's see who did just that and got what they were looking for

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on today's show.

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Today, at a quaint cottage in the beautiful Malvern Hills

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of Worcestershire, I've got a small issue with a tiny door.

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It's starting to get a bit silly, isn't it?

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In Stoke, a door in a two-bed house could be a real pain.

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That's a health and safety issue right there.

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Definitely get that changed.

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And on the coast, down in Dover, Kent,

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I'm spoiled for choice at this flat and commercial premises.

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Now, which door do I go in first?

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All of these properties have been sold at auction.

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We'll find out who got them and what they paid for them

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when they went under the hammer.

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You bought it, well done.

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The spa town of Malvern in Worcestershire

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has given us many things -

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spring water, Morgan three-wheel sports cars and Sir Edward Elgar.

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He had strong links with Worcestershire

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and lived in and around Malvern.

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His Nimrod Variation is now synonymous with Remembrance Day.

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I love quaint English towns like this.

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You're just a stone's throw from the little centre of the town,

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lots of nice pubs, views over the Vale of Evesham.

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I mean, it is absolutely stunning.

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Will the property I'm here to see live up to the expectations?

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Well, hopefully.

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It's a two-bedroom cottage, guide price 105 to 115,000 quid.

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Sounds a bit quirky. Let's have a look.

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This cottage, that backs on the end

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of a short terrace, is certainly different.

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For starters, the windows are laid out in a rather peculiar way.

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So, you already know, don't you?

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This is going to be slightly unusual inside and sure enough...

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Oh, my goodness.

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You don't have to go very far to see big problems with damp.

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Look at that. Wow.

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OK, so we're going to be on the lookout for that throughout the rest

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of the property, but through the front door into this little sort of

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area here. That, believe it or not, is the kitchen.

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Very long and sort of thin, but what you kind of expect -

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in an unusual position and very oddly shaped.

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Oops!

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Not too good if you're a slightly large, tall person.

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Very, very low door height.

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But in this room here.

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You know, I think we're going to have to throw the definition

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of what rooms are out of the window, cos I do not know what this room is.

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It's a sort of middle room thing. So let's call it that, then.

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Here, into the middle room thing, it's a pretty good size.

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Round that way there's a downstairs loo, which is good news,

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and then here, stairs down to the cellar, so that's good.

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Let's continue our explore into...

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Well, I don't know, let's call it middle room number two here.

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Lots of unusual features again.

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Oh, I don't like that.

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Damp over there. It seems like it's coming in absolutely everywhere.

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But it's just so quirky, isn't it? Don't you love it?

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This little feature here, I don't know what that is.

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It's a hole in the wall. It's completely barking mad.

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It was mad when I was walking up and it's even dafter when you get in.

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I love it!

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# I don't care, I love it

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# I don't care... #

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The layout might not be for everyone, but I don't care.

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And, yes, I do have eclectic taste.

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# I love it. #

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So, up a narrow and slightly quirky staircase, to the upstairs.

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My goodness, what is in store up here?

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I can't wait! A bedroom over that way.

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More signs of damp towards the top there.

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There's damp on every single wall, it seems.

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It does seem like it's been freshly painted.

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That always worries me. What else has been covered up?

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But...one nice thing you have got,

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lots of storage. And aren't these doors beautiful?

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Absolutely lovely. Sort of a nice additional feature, which gives

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even more character to the place.

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Wow.

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Tiny bathroom.

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Look at the size of that bath.

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I don't think there's enough head height to give you a shower, either.

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Hmm. OK. Compromise.

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Well, down here, into the second bedroom,

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and it's starting to get a bit silly, isn't it?

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I mean, look at this door and into this room!

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I don't know, it's like a doll's house, isn't it?

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It's amazing. It's amazing.

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Whether you could live with it on a permanent basis, I'm not so sure.

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It's easy to see from up here that someone has already started working

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on the leaky roof, but I'm heading as low as you can possibly go.

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Well, down into the cellar and it's actually a half-decent sized room

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for a change. It looks like it's had something on the floor, like...

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Oops. That's kind of fun.

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Dead sticky now. That's the residue of the glue

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used to glue the carpet or whatever down, but the moment you walk down

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here, apart from the fact you go, "Ooh, it's nice and cool,"

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is you're hit by the overwhelming smell of damp, so like the rest

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of the property, not surprising, I guess,

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the cellar is also in a bit of a state.

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So, the house, really, first and foremost, needs to be, basically,

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dehumidified, certainly down here, and then whatever it is,

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wherever it is that that water, that rain, that damp,

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whatever it is that's coming in,

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you've got to sort that out first before you do anything else.

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We've invited a local estate agent to view the property and give some

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valuations on the different options, plus some background

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on the area and its people.

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Great Malvern's a lovely place to live.

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Very popular place for, mainly, retirement people,

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but also you've got the holiday let market, as well, here.

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Which can be very lucrative, if there is enough demand.

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How about valuations?

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When the property has been fully refurbished,

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I would value this property at around £150,000-£160,000.

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The rental value on this particular property would be around £650

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per calendar month to £700 per calendar month.

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And the dream scenario, if you could generate year-round bookings?

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On the holiday let market,

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this property would fetch around £600 per week.

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Well, they don't come much more quirky than this, do they?

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And this is exactly the sort of property that somebody,

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or probably quite a few people,

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would have fallen absolutely in love with,

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despite the fact it could be a potential money pit.

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Who cares? Let's see who bought it, when it went under the hammer.

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Lot 96.

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Great Malvern.

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60?

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That must tempt somebody.

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60,000, I'm bid at standing, at £60,000 only.

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70, sir. Thank you.

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70. 80, sir.

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The lot came towards the end of the auction,

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but there were still enough interested bidders

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to take the price upwards.

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We rejoin the bidding at £120,000.

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120, yes, sir.

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122, thank you.

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124. Three if you like.

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122,000, then.

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For the first time. For the second time at £122,000.

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Third and the very last time.

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Fresh bidder again, 123.

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124, sir.

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125, sir, 125.

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126.

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Another one, sir. 126, six.

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127.

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No. As you wish. £126,000.

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First, second and third time. I shall go on no longer.

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And so going, going, gone.

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And your number, sir, is...?

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491, thank you.

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Thank you, all.

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The couple wielding paddle 491 were husband and wife

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Jeff and Di.

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They've refurbished properties and rented them out in the past.

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Di trotted up the many steps approaching the house

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to meet me and talk about their plans.

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-Di, really good to meet you.

-Pleased to meet you.

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So, you were one of those people who fell in love with this place, then?

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Yeah, absolutely. It's so pretty, how could you not?

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Well, indeed. Tell me about your relationship with this house, then.

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How did you know about it?

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Well, I've lived in Malvern for a long time.

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My husband's been a builder in Malvern for 35 years.

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-Wow.

-So we really know the area.

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So when it came up for auction,

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we only spotted it at the last moment, so we didn't even get

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-a chance to have a look at it.

-No!

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No, I know. Mad.

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On the whole, we could have done a lot worse.

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-Right.

-And, yeah, it's all right.

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In terms of what you paid, were you happy with that or...?

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We were. I don't think we'd have gone any higher.

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If anybody had bid above us,

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then I think that was the point we were going to stop.

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-Right. Did you go above your budget or...?

-Slightly.

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How slightly?

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About £5,000 on what we agreed, but...

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So, what was it about it? Cos you only saw it from the outside,

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so let's just talk, what was it about the outside

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that you thought, "Oh, yeah, we must have this?"

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It's got bags of character, even from the outside.

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And it's so quirky.

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If you turn right out of here, you go straight up to the hills,

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St Ann's Well and the Beacon, turn left out of here,

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you're straight into the town, where you've got one of the best theatres

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around, great dining, great shops, and we thought,

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-maybe one day we might live in it, as well, so...

-Right.

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So, one day you might live in it. So, what's the plan in the meantime?

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If I get my way, it's going to be a holiday let.

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It's a perfect holiday let.

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If my husband gets his way, we'll sell it.

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-But I'm not going to let that happen.

-Sell it?!

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I know. I don't think he'll be able to.

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What, you mean, he won't be ALLOWED to?

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I'm hoping he'll love it so much, he won't be able to part with it.

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Hmm, a risky strategy, that one.

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I suppose it depends on how much he likes fixing

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all the types of damp known to man.

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So, you saw it from the outside, then.

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Didn't see it inside until you'd bought it?

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No. We had a quick look at the auction pack,

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just a quick scan of it, before we bid.

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-What, the legal pack?

-Yes.

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A legal pack on something like this could be completely crazy!

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-It could have all sorts of rights of ways and covenants...

-Yeah.

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..and easements and goodness knows what.

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-Yeah, that's right.

-But...

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A quick scan, we couldn't see any thing major,

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kept our fingers crossed and...

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-Oh, no!

-I know.

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And what about the rooms?

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Down here, it's fine, but the kitchen's a bit kind of quirky.

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-It is.

-Upstairs, though, the bathroom and the second bedroom...

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I know. It's cute.

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You're a lost cause, aren't you?

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It's character,

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but I don't want to take any of that away, cos it's lovely.

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But the bathroom's not exactly practical, is it?

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It's not, no. What we're going to do, hopefully,

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we're going to move the boiler into the kitchen and try and put a shower

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in where the boiler is at the moment cos everybody wants a shower.

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You might want a nice, quirky, old building,

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you still want your modern-day comforts.

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Right. Especially if you're going to let it out to holiday-makers.

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-Yeah, exactly, yeah.

-You mentioned your husband's a builder?

-Yes.

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-So, is he going to do all the work, then?

-He is, yes.

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Him and the contractors that he works with.

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-Does he have a budget?

-We're looking, at the moment,

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we think we can do it between 20 and 22.

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What have you discovered, in terms of the damp and where

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it's coming from, and how are you going to resolve it?

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There's some water ingress in the main room, which is from the roof.

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And is it you who started work on the roof already?

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Yes. It was the first thing we wanted to take a look at,

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cos we knew that would be the big... the big thing to deal with.

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There's some rising damp we can deal with.

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A lot of the damp in the cellar looks really scary,

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but in actual fact, there was a leak from the downstairs loo

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and that's all it is.

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So, once that's dried out,

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we'll replace the floor and that should pretty much deal with it.

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Right. So do you have any idea of timescales for sorting it?

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-We're hoping three months.

-Listen, I'm really delighted for you.

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Lovely to meet you. Good luck with it.

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-Can't wait to see how it turns out.

-Thank you very much.

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Well, there you go, as you might have predicted,

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Di and her husband completely falling in love with this place.

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Well, I say her husband, will he really be able to let go of this

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once it's sorted out? That's the big question.

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In the meantime, lots of work to be done,

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but they don't seem too daunted, and, yeah...

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I can't wait to see how it turns out.

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You can find out later in the show.

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Chell in Staffordshire is a bustling suburb of Stoke-on-Trent.

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It has a good mix of housing stock and lots of green space,

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with Tunstall Park nearby.

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Then, there is the structure

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built in 1907 by the Adams family.

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But, no, it isn't creepy and kooky.

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It's a quite nice, stylish clock tower.

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Now, the property I'm here to see is an end-of-terrace post-war house.

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Now, it does have a modern feel to it,

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but it also has some of the design features from the traditional

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terraced houses within the area.

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And here it is. It's got two bedrooms

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and it has a guide price of £49,000, plus an added bonus -

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a bit of off-street parking.

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OK. We have got some very colourful carpet to start off with.

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Stairs going up to your bedrooms, just there.

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Into the lounge and these doors, or this door, should I say,

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will definitely have to change.

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That's a health and safety issue right there.

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Definitely get that changed. Nice big window, lots of light coming in.

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Double glazed window, as well, which is great.

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Central heating. I'm listing lots of stuff here.

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So, very good start.

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Good-sized room, as well.

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You've got an old-fashioned, sort of, '70s fireplace.

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Bit of storage, some shelving space in here.

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Looks like there may be a bit of damp or maybe a bit of mould,

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due to lack of ventilation.

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It might have been closed and shut down for some time this house, so...

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And, there seems to be quite a large

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crack at the top there, as well, so...

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I may come back to that, but that's quite alarming.

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OK, through the back, we've got the kitchen.

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Out here, we've got a downstairs toilet, which is good news,

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and the back door, going out to the back garden.

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Kitchen's a good size. It is dated. It is a little bit old-fashioned.

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Wouldn't take much to take it out,

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put a brand-new kitchen suite in here, but you do get a feeling

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that it's been looked after,

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it's been given a lot of TLC over the years.

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The only issues I've seen so far is that little bit of damp and mould

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and that crack, but that is it.

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Lick of paint, new carpets, brand-new kitchen,

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you'd be sorted down here.

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Out back, the garden has been well landscaped,

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but it's still a bit overgrown.

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With 'gnome' messing around,

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it's time to fly upstairs.

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OK, coming up the stairs, you've got what looks like wood,

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but it's not, it's actually wallpaper.

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Bathroom here, at the top of the stairs.

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No bath at all, but a really nice, large shower.

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And I see there's a water tank, as well.

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If you wanted to try and reconfigure that, put a bath in,

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you could quite easily try and get a combi in there.

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Two bedrooms. You've got a yellow bedroom there,

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looking out onto the back of the house, which is a good size.

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In here, we have got the front bedroom

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and I've seen, for the first time upstairs, a wall without wood chip.

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Get a shot of that, whatever you do.

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Good-size room, anyway.

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Purple carpet, you want to get rid of that.

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Period fireplace, over there.

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Only a small one, but quite sweet.

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You could actually tidy that up, as well.

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I'm liking what I'm seeing.

0:16:490:16:52

And there's not really anything here that's making me think,

0:16:520:16:55

"I'm a bit frightened."

0:16:550:16:57

Well, I take that back.

0:16:590:17:00

Everyone is scared of the prospect of chipping away at wood chip

0:17:000:17:04

and there might be something else to be worried about,

0:17:040:17:07

on closer inspection.

0:17:070:17:08

One thing I have noticed, there does seem to be

0:17:100:17:13

quite a few cracks in this ceiling.

0:17:130:17:15

As you can see, all the way along and all the way through to

0:17:150:17:19

the centre here, and there seems to be...

0:17:190:17:22

Especially here.

0:17:220:17:23

There's even a little bit of movement there, as well.

0:17:230:17:25

It might be nothing. It might just be a bow in the plasterwork.

0:17:250:17:29

I do know that, back in the day,

0:17:290:17:31

there was a lot of mining in these parts.

0:17:310:17:33

It might have something to do with it, it might not.

0:17:330:17:35

But it's always good to get it checked out

0:17:350:17:37

and definitely read the legal pack.

0:17:370:17:39

I mention mining, as the cause could be subsidence or the house moving.

0:17:420:17:47

If it's historic, nothing to worry about.

0:17:470:17:50

But if the house is slipping into an old mine shaft,

0:17:500:17:53

then picture the cracks getting worse and then some.

0:17:530:17:56

An agent from the auction house that sold the property

0:18:090:18:12

can give us a second opinion.

0:18:120:18:13

It is an old property.

0:18:150:18:17

There is some signs of cracking, that can clearly be seen.

0:18:170:18:21

But, really, a buyer would be prudent to investigate that

0:18:210:18:25

prior to auction and possibly look

0:18:250:18:26

to get an opinion from a professional surveyor.

0:18:260:18:29

There is some signs of damp downstairs and, potentially,

0:18:290:18:32

there would be a timber and damp investigation also required.

0:18:320:18:36

Wise words. Worth repeating.

0:18:370:18:39

What else does this house need?

0:18:390:18:41

The property itself really just requires

0:18:410:18:44

some modernisation and improvement.

0:18:440:18:46

Depending on the specification,

0:18:460:18:48

I would expect most people

0:18:480:18:50

would look to spend in the region of £15,000 on a full refurbishment.

0:18:500:18:54

So, get it at the 49 grand guide price and you could be looking at

0:18:570:19:01

a £64,000 total spend.

0:19:010:19:04

Would it be worth it for sale or rental?

0:19:040:19:06

After refurbishments,

0:19:070:19:09

I would look to market this property in the region of £95,000 or,

0:19:090:19:13

alternatively, rental income in the region of £450 per calendar month.

0:19:130:19:17

This property could be a bit of a...

0:19:190:19:21

coo.

0:19:210:19:23

There isn't an awful lot that needs to be done to this house.

0:19:250:19:28

This should be a really nice, or could be, a really nice family home.

0:19:280:19:32

But who was lucky enough to get it when it went under the hammer?

0:19:320:19:35

Lot number two.

0:19:380:19:40

40, to start?

0:19:410:19:42

Got to... 40 bid, seated, thank you.

0:19:440:19:46

£40,000. 45, can I see now?

0:19:460:19:49

At £40,000.

0:19:490:19:50

Who with the 45? 45 bid now.

0:19:500:19:52

At 45. 50, sir.

0:19:520:19:55

Sluggish to start, so the auctioneer dropped the guide price,

0:19:550:19:59

but things were soon looking up and we rejoin the bidding at £53,000.

0:19:590:20:05

53. 54. 55.

0:20:050:20:09

56. 57.

0:20:090:20:12

58? 58.

0:20:120:20:14

59. 60.

0:20:140:20:16

60.

0:20:180:20:20

Shaking his head. 60. 61, lady now.

0:20:200:20:22

62, anywhere else?

0:20:220:20:25

If not, £61,000 once,

0:20:250:20:28

£61,000 twice, third and final...

0:20:280:20:31

62.

0:20:320:20:34

63, madam? 63.

0:20:340:20:38

64, sir. No? Still with you, madam.

0:20:380:20:39

At 63,000, all done now.

0:20:390:20:42

63 once, twice, third and last time.

0:20:420:20:44

63,000.

0:20:440:20:46

You've bought it, madam, well done.

0:20:460:20:49

The winning bid of 63 grand was by Alison.

0:20:490:20:52

For her and her partner Steve,

0:20:550:20:56

this marks the first venture into property development,

0:20:560:20:59

so what did they have planned for the new house?

0:20:590:21:02

-Alison, nice to meet you.

-And you too.

-Congratulations.

-Thank you.

0:21:030:21:06

What attracted you to it in the first place?

0:21:060:21:08

Well, it was a nice, sunny day, I just came past,

0:21:080:21:10

looked through the window and thought, "That's the one for me."

0:21:100:21:13

-Hold it, hold it a minute. You looked through the window?

-Yep.

0:21:130:21:15

Did you view it before you bought it?

0:21:150:21:17

No, just came past, looked through the window and thought, right spot,

0:21:170:21:21

looked sunny, looked nice, looked happy, so that was it.

0:21:210:21:24

So lucky!

0:21:240:21:25

-You should always view your property, shouldn't you?

-You should.

0:21:250:21:28

-Did you read the legal pack?

-I did, yes.

0:21:280:21:31

-I did do.

-Well done.

0:21:310:21:32

-That's one out of two, I'll accept that.

-Yeah.

0:21:320:21:34

I've been in lots of houses now.

0:21:340:21:37

This is one of the houses, probably the best house I've seen.

0:21:370:21:40

-It's in great shape.

-It is.

0:21:400:21:41

From the outside it looks really pretty, quite easy to live in.

0:21:410:21:45

Inside, obviously, quite outdated.

0:21:450:21:48

And so I thought for a first step into the market,

0:21:480:21:52

this is the best type of house to get.

0:21:520:21:54

First place to dip your toe into.

0:21:540:21:56

That's it.

0:21:560:21:57

# They call you lady luck

0:21:570:22:01

# But there is room for doubt... #

0:22:020:22:07

Alison is a lucky lady, in my opinion.

0:22:070:22:10

Even if you do read the legal pack,

0:22:100:22:12

you should always view the property before parting with your cash.

0:22:120:22:15

Thankfully, the pair have landed on their feet here.

0:22:160:22:19

So what are you going to do, from top to bottom?

0:22:210:22:23

Upstairs, probably re-plaster the bedrooms.

0:22:230:22:27

Totally refurbish the bathroom.

0:22:270:22:29

Come down the stairs, remove all that awful wallpaper on the stairs.

0:22:290:22:33

-Not your taste?

-No!

0:22:330:22:35

Downstairs, probably replace all the kitchen, downstairs toilet,

0:22:350:22:40

take out the fireplace in here and generally redecorate.

0:22:400:22:44

-Structurally, it seems pretty sound.

-Pretty sound.

0:22:440:22:48

I have seen a little bit of damp,

0:22:480:22:50

maybe mould in the downstairs cupboard and a few cracks, as well.

0:22:500:22:54

-Yes.

-Any concerns?

0:22:540:22:55

No, I don't think it's anything to be too concerned about.

0:22:550:22:58

I think the house has been empty for a few months

0:22:580:23:01

so it's only to be expected, really.

0:23:010:23:03

My other half is quite experienced with houses like this.

0:23:030:23:06

He's been a gas engineer.

0:23:060:23:08

He trains gas engineers now,

0:23:080:23:10

so he's done a bit of everything, really.

0:23:100:23:12

So he was OK with it all, so I trust his judgment.

0:23:120:23:17

What kind of budget have you given yourself?

0:23:170:23:20

About 8,000, maybe a little bit more.

0:23:200:23:23

Not quite sure, really, just see how it goes.

0:23:230:23:26

And how long are you hoping all the work's going to take you to do?

0:23:260:23:29

-Probably about 12 weeks.

-OK.

-Maximum.

0:23:290:23:31

-That's not too bad, is it?

-No, we'll give ourselves a bit of space.

0:23:310:23:34

-We're both still working so...

-OK.

-It's just got to be fitted in.

0:23:340:23:37

Alison works in a bank as an anti-money-laundering officer.

0:23:390:23:43

No surprises, then, that she is well-placed to project manage

0:23:430:23:46

and keep those numbers tight,

0:23:460:23:48

but she does plan to get her hands dirty, as well.

0:23:480:23:51

How are you going to squeeze it in, all this work?

0:23:530:23:55

Well, I only work three days a week, so outside of that,

0:23:550:23:58

I'll be here every day scraping the wallpaper off,

0:23:580:24:01

taking tiles off, and he'll be here at the weekends.

0:24:010:24:04

What enticed you into the property world?

0:24:040:24:06

Mainly because I'm getting to an age where I've got to think about

0:24:060:24:09

-retirement one day.

-No, no, no.

0:24:090:24:11

-I am, yes.

-Cut, I'm not accepting that.

0:24:110:24:14

Yeah. So I just thought, it's something there

0:24:140:24:16

to boost my pension for when I do eventually retire.

0:24:160:24:20

So is this the first of many, then?

0:24:200:24:22

-It could be.

-Is that what you're hoping?

0:24:220:24:24

It depends on how it goes.

0:24:240:24:26

If we make a profit, then, yes.

0:24:270:24:28

-For your first one, I think you fell on your feet.

-Hope so.

0:24:280:24:30

-I wish you all the best, Alison.

-Thank you. Yep.

0:24:300:24:33

-And the same to Steve, as well.

-Thank you. I'll pass it on.

0:24:330:24:35

-Good luck, good luck.

-Thank you.

0:24:350:24:37

Despite only looking through the window,

0:24:390:24:41

Alison and Steve have got themselves a really nice house.

0:24:410:24:45

They did read the legal pack, though, so no nasty surprises.

0:24:450:24:49

As a first project goes, this should be pretty straightforward.

0:24:490:24:52

You can find out how they get on later in the programme.

0:24:520:24:55

Still to come, at this two-bed maisonette and ground-floor shop

0:24:570:25:01

in Dover, Kent, I've got something pretty exciting to show you.

0:25:010:25:04

Have a look at this.

0:25:040:25:05

And have Alison and Steve found a balance

0:25:080:25:10

at their two-bed house in Stoke?

0:25:100:25:12

It's just keeping a level head and not going overboard on things.

0:25:120:25:16

Time now to get back to the glorious Malvern Hills in Worcestershire and

0:25:200:25:24

this curious cottage that really took my fancy,

0:25:240:25:27

even though it was far from perfect.

0:25:270:25:29

The moment you walk down here,

0:25:300:25:32

you're hit by this overwhelming smell of damp.

0:25:320:25:35

'There was a small problem upstairs.'

0:25:350:25:37

Tiny bathroom. Look at the size of that bath.

0:25:370:25:40

'And back downstairs...' Don't like that.

0:25:400:25:44

Damp over there and it seems like

0:25:440:25:45

it's coming in absolutely everywhere,

0:25:450:25:47

but it's just so quirky, isn't it?

0:25:470:25:48

Don't you love it? This little feature here.

0:25:480:25:50

Don't know what that is, there's a hole in the wall.

0:25:500:25:53

It's completely barking mad.

0:25:530:25:55

It was mad when I was walking up and it's even dafter when you get in.

0:25:550:25:58

I love it.

0:25:580:25:59

The cottage was bought, damp and all, for £126,000 by Di and Jeff,

0:26:000:26:06

who is, luckily, a builder.

0:26:060:26:07

But there were some differences of opinion.

0:26:070:26:11

If I get my way, it's going to be a holiday let.

0:26:110:26:13

It's a perfect holiday let.

0:26:130:26:15

If my husband gets his way, we'll sell it.

0:26:150:26:17

But I'm not going to let that happen.

0:26:170:26:20

-Sell it?!

-I know.

0:26:200:26:22

I don't think he'll be able to.

0:26:220:26:24

What, you mean, he won't be allowed to?

0:26:240:26:26

I'm hoping he'll love it so much, he won't be able to part with it.

0:26:260:26:29

I know who I'd put my money on!

0:26:310:26:33

Ideally, long term, Di would them to live here

0:26:330:26:37

and they budgeted £20,000-£22,000 to restore and rejuvenate it.

0:26:370:26:41

So do you have any idea of timescales for sorting it?

0:26:440:26:46

We're hoping three months.

0:26:460:26:48

Well, eight months later and they've been busy re-rendering the outside,

0:26:480:26:52

repainting the outside and fitting a new door with a new shower fitted,

0:26:520:26:57

just as planned.

0:26:570:26:58

# I'm coming home, I'm coming home

0:26:580:27:02

# Cos this life that I've been living ain't my own... #

0:27:040:27:09

The cellar eventually dried out enough to be re-floored

0:27:090:27:12

and the kitchen was spruced up with new units added.

0:27:120:27:15

# I'm coming home

0:27:200:27:23

# Oh, yeah, yeah, yeah

0:27:230:27:26

# I'm coming home

0:27:260:27:29

# Oh, yeah, yeah, yeah. #

0:27:290:27:32

The damp in the downstairs rooms dried out after the roof repair

0:27:330:27:38

and the traditional boarding and neutral colour schemes

0:27:380:27:41

makes all the rooms much fresher.

0:27:410:27:44

The damp in the back bedroom is gone.

0:27:440:27:46

In fact, all the damp is gone.

0:27:460:27:48

Result.

0:27:480:27:50

The bathroom also has a new sink and fittings.

0:27:520:27:54

If you think the ceiling in the front bedroom is a bit higher,

0:28:090:28:12

that's because it is.

0:28:120:28:14

In redoing the roof and re-forming the ceiling,

0:28:140:28:17

a bit more height and roof insulation were achievable.

0:28:170:28:20

So, how did the couple fare with the heavy workload?

0:28:200:28:24

It was a bit of a rollercoaster of emotions.

0:28:290:28:32

We'd find one thing that was great and we didn't have to spend money on

0:28:320:28:35

and then we'd find something else that cost a fortune.

0:28:350:28:38

So, it was exciting and stressful, but there was nothing major.

0:28:380:28:42

I think, we were very lucky in the end

0:28:420:28:44

because we hadn't seen the property before we bought it.

0:28:440:28:48

I think we came off lightly, to be fair.

0:28:480:28:50

Well, you can say that again.

0:28:520:28:54

What was it like filling skips, with all those stairs and no path?

0:28:540:28:57

The access to the property can be a bit difficult

0:28:590:29:01

because it's on the side of a hill so, yeah, there were problems.

0:29:010:29:05

Fortunately, our neighbours have been absolutely wonderful

0:29:050:29:08

and we couldn't have done it without them.

0:29:080:29:10

They've been so patient when we've had scaffolding at the side

0:29:100:29:14

of the building or needing to park everywhere.

0:29:140:29:16

They've just been so accommodating.

0:29:160:29:18

I don't want to sell the house cos I want to keep the neighbours!

0:29:180:29:21

Well, we all appreciate good neighbours.

0:29:220:29:24

So, what did Di get stuck into on the project?

0:29:240:29:28

I made quite a few of the decisions on how we were going to do things

0:29:280:29:31

and got involved in a few arguments about it, too.

0:29:310:29:35

But, yes, I think I kept an eye on the money

0:29:350:29:38

and would have spent more if Jeff hadn't stopped me.

0:29:380:29:42

So did Jeff manage to keep you to that £20-£22,000 budget?

0:29:420:29:46

We ended up spending between 28 and 30,000, we think.

0:29:460:29:50

But we had to get the roof done

0:29:500:29:52

which we didn't know how much that was really going to cost

0:29:520:29:56

until they came and did it.

0:29:560:29:58

And then we had to take the ceilings down upstairs and redo the ceilings,

0:29:580:30:02

and that was an additional cost we hadn't anticipated.

0:30:020:30:05

We called in two local estate agents to give us valuations and opinions

0:30:070:30:11

on the restoration job.

0:30:110:30:12

I think they've done a really good job.

0:30:150:30:17

They've kept it nice and neutral in terms of decoration but they've kept

0:30:170:30:21

an awful lot of character, and that's what people are looking for

0:30:210:30:24

when they're moving to locations like this.

0:30:240:30:26

The buyers have done an excellent job in renovating this cottage

0:30:260:30:30

combining contemporary living

0:30:300:30:32

yet still retaining its original charm and character.

0:30:320:30:35

So that's thumbs up from the agents.

0:30:360:30:38

But Di and Jeff have spent a lot on this cottage.

0:30:380:30:41

The total investment is now around £156,000.

0:30:410:30:45

Would they get their money back if they sold it?

0:30:450:30:47

We would probably put it on the market somewhere around the £220,000

0:30:510:30:54

mark and look to achieve somewhere between £200,000

0:30:540:30:58

and the asking price.

0:30:580:30:59

If this cottage went on to the open market,

0:30:590:31:02

I think it would sell for a figure of around £200,000.

0:31:020:31:05

That could mean a potential profit of up to £64,000

0:31:060:31:10

minus taxes and fees,

0:31:100:31:12

if they were to crack that top figure.

0:31:120:31:14

I feel vindicated because we knew it was a difficult one to price,

0:31:170:31:21

but we know the area so we felt confident

0:31:210:31:24

we were doing the right thing and,

0:31:240:31:25

yeah, we're very happy with those prices.

0:31:250:31:27

The rental estimates were between 700 and £750 per calendar month.

0:31:280:31:33

The top figure would give the couple a yield just short of 6%.

0:31:330:31:37

We've done some research and we felt that that would, hopefully, be where

0:31:380:31:43

we'd pitch it for rental, so very happy with that, as well.

0:31:430:31:48

The agents valued the holiday let at an average of £600 per week

0:31:480:31:52

over the year. If the cottage were let for the whole year,

0:31:520:31:55

ambitious as that sounds, it would produce a yield of 20%.

0:31:550:31:59

I think that would be what we'd like to achieve so, yeah,

0:31:590:32:03

very happy all-round with all of those.

0:32:030:32:05

And who wouldn't be?

0:32:050:32:06

So have there been any decisions yet on the future use of the property?

0:32:060:32:11

We still don't know what we want to do.

0:32:110:32:14

We've had a few offers even though we haven't marketed it.

0:32:140:32:17

A lot of interest, but we've also fallen in love with it,

0:32:170:32:20

which we knew we were going to,

0:32:200:32:22

so we still don't know whether to rent it as a holiday let

0:32:220:32:25

or sell it. We've got to make a decision.

0:32:250:32:27

Dover in Kent is famous for one thing.

0:32:340:32:37

You guessed it.

0:32:370:32:38

The local port of Dover, which is the nearest port to France,

0:32:380:32:41

and the world's busiest by passenger numbers.

0:32:410:32:44

No, that's not what it's most famous for.

0:32:440:32:47

That would be Dover Castle built by Henry II in 1189.

0:32:470:32:53

Still not it? Is it more famous for the beach?

0:32:530:32:56

Its range of architecture, perhaps?

0:32:560:32:59

Well, I can't think of anything else it's famous for.

0:32:590:33:02

# There'll be bluebirds over

0:33:020:33:08

# The white cliffs of Dover... #

0:33:080:33:13

Ah, yes, that would be it, then.

0:33:130:33:17

So what's up for auction in this sunny seaside town?

0:33:170:33:19

Well, it's a slightly unusual listing.

0:33:190:33:22

It's a two-bed maisonette on the upper floor,

0:33:220:33:25

but this lot comes with its very own shop, too.

0:33:250:33:29

So, for a guide price of £90-£95,000,

0:33:290:33:32

you get the flat up there and the lease for what appears to be a

0:33:320:33:36

successful little business down here.

0:33:360:33:39

Now, which door do I go in first?

0:33:390:33:42

Yep, to the first flat, which you gain the freehold of,

0:33:450:33:48

should you buy it.

0:33:480:33:50

It's worth remembering that flats above shops are often difficult

0:33:500:33:53

to mortgage, so rather than getting two properties,

0:33:530:33:56

you might just get a financial headache.

0:33:560:33:58

So let's have a look around and see what you do get.

0:34:000:34:02

So this is the living accommodation above the shop.

0:34:020:34:05

Now, it's a maisonette, which means it's split level,

0:34:050:34:07

it's on two floors.

0:34:070:34:09

You've got your sleeping accommodation upstairs.

0:34:090:34:11

The kitchen area here, the high street just out there.

0:34:110:34:15

And, actually, because of this double glazing, it's not too noisy.

0:34:150:34:19

But it could do with a bit of a refurb.

0:34:190:34:21

Possibly a new kitchen, a lick of paint, some new lino,

0:34:210:34:25

not sure about these textured walls,

0:34:250:34:28

so it does need a bit of a spruce, some new carpets, perhaps.

0:34:280:34:31

But what you do have are some really nice views of Dover.

0:34:310:34:34

Have a look at this.

0:34:340:34:36

Yes, spectacular views, I'm sure you'll agree.

0:34:390:34:42

But mind your step, as this roof is in poor condition

0:34:420:34:45

and unlikely to pass current safety regulations.

0:34:450:34:48

The condition upstairs is much the same as the downstairs.

0:34:490:34:52

A new bathroom suite and some modern decor wouldn't go amiss

0:34:520:34:55

in the flat's two bedrooms.

0:34:550:34:57

The other thing you are taking on with this lot

0:34:590:35:02

is the lease of a gaming shop downstairs,

0:35:020:35:04

with good outdoor space and good facilities

0:35:040:35:07

and proportions in the shop itself.

0:35:070:35:10

It's currently bringing in around £3,500 in rent, but the commercial

0:35:100:35:15

sector isn't exactly healthy right now,

0:35:150:35:17

so taking it on could be a bit of a gamble.

0:35:170:35:21

So when it comes to commercial property, well,

0:35:210:35:24

that is a whole different affair,

0:35:240:35:26

with an average of 16 shops closing a day.

0:35:260:35:29

The number of retail premises that remained empty in 2014

0:35:290:35:33

almost tripled to 987,

0:35:330:35:36

so having an established, successful trader already in place

0:35:360:35:41

and wanting to stay here, well, for commercial property,

0:35:410:35:45

that could make this only part-vacant lot

0:35:450:35:48

something to really celebrate.

0:35:480:35:50

MUSIC: Board Game by Collapsed Lung

0:35:500:35:58

Because of the shop's income,

0:36:020:36:03

it opens up plenty of possibilities with the flat.

0:36:030:36:06

We invited a local property expert along to ask him what he would do

0:36:090:36:12

with the property.

0:36:120:36:14

For long-term investment,

0:36:180:36:19

I would keep both the properties let and benefit from the dual income.

0:36:190:36:24

Get the flat renovated and a tenant in it.

0:36:240:36:26

Before buying a property like this

0:36:260:36:29

with an existing tenant in a place,

0:36:290:36:31

it's always worth making enquiries

0:36:310:36:34

on the status of the tenancy,

0:36:340:36:37

the rent history and that there's been no breaches of the agreement.

0:36:370:36:40

The agent thinks that you can spend a maximum of 10 grand here,

0:36:400:36:45

so your total outlay including the top guide price would be £105,000.

0:36:450:36:50

What kind of return could we get for that?

0:36:500:36:53

With the building fully let,

0:36:530:36:54

the income potential here is something of the order of 800,

0:36:540:36:58

£850 per calendar month.

0:36:580:37:00

At £850 per calendar month, that could be a 10% yield,

0:37:010:37:06

or would you be better off selling the flat and

0:37:060:37:08

shop lease?

0:37:080:37:11

Presuming it's fully let,

0:37:110:37:12

then the value is going to be about £100,000.

0:37:120:37:15

Based on the figures so far,

0:37:170:37:18

there's not much, if any, room for profit.

0:37:180:37:20

You're going to need all your pieces in the right place

0:37:200:37:23

to make this one work.

0:37:230:37:25

This certainly isn't a simple project for a novice developer,

0:37:310:37:34

with the residential flat upstairs

0:37:340:37:36

and this commercial property down here,

0:37:360:37:39

plus, you've got an ongoing lease.

0:37:390:37:41

Well, there's certainly a lot to get your head around here

0:37:410:37:43

and if you want to make a profit on this, well,

0:37:430:37:46

you'll really need to know what you're doing.

0:37:460:37:48

So, who was up for the challenge and wanted to play with this property

0:37:480:37:52

when it went under the hammer?

0:37:520:37:54

Right, lot 16.

0:38:000:38:02

Good little lot here.

0:38:020:38:04

Start wherever you like.

0:38:040:38:05

£90,000, perhaps.

0:38:050:38:07

So you've got the shop and a vacant maisonette above,

0:38:070:38:09

and I'm looking for £90,000.

0:38:090:38:12

Give me 80, then.

0:38:120:38:13

It's in Dover. £80,000.

0:38:130:38:15

£80,000, I've got.

0:38:150:38:17

£80,000.

0:38:170:38:18

And five now, can I say?

0:38:180:38:20

85, do I see?

0:38:200:38:22

85 bid, I have.

0:38:220:38:23

£90,000 is against you.

0:38:230:38:25

At £90,000 bid.

0:38:250:38:26

95 now, if you like.

0:38:260:38:28

95 do, I see?

0:38:280:38:29

At 95, do I see?

0:38:290:38:31

At £90,000, second row back.

0:38:310:38:33

95 I'm looking for.

0:38:330:38:34

It's here to be sold at £90,000.

0:38:340:38:37

For the first time, then, at £90,000.

0:38:370:38:40

In the second row back, for the second time at £90,000,

0:38:400:38:45

third and final time at £90,000, are we all done and happy?

0:38:450:38:48

All done? Yours at 90,000.

0:38:480:38:50

Well, sir, you certainly beat everyone on that, didn't you?

0:38:500:38:53

A bid at the low end of the guide price of £90,000 was enough for the

0:38:530:38:56

business partnership of Mike and Andrea to secure the properties.

0:38:560:39:00

Andrea is a personal trainer, while Mike is semi-retired,

0:39:020:39:05

running an estate agency in London.

0:39:050:39:08

This was their first auction purchase.

0:39:080:39:10

So what was their plan?

0:39:100:39:12

Mike and Andrea, congratulations, lovely to meet you both.

0:39:120:39:14

-And yourself.

-Nice to meet you.

-So, I want to know, what was the interest?

0:39:140:39:17

Why did you want to buy this?

0:39:170:39:19

It's a nice, spacious flat, reasonably clean,

0:39:190:39:22

doesn't require too much work.

0:39:220:39:24

Well, it requires all the fun work, which is putting in new kitchens,

0:39:240:39:27

new bathrooms where you can.

0:39:270:39:28

Me and Andrea are going to help to get things like that done,

0:39:280:39:31

and very much so. The shop came with it, but the shop pays some rent

0:39:310:39:36

so there is some sort of income coming in

0:39:360:39:39

and we just felt that as a package, if it went for the right price,

0:39:390:39:43

it was worth paying.

0:39:430:39:44

So you've obviously got the shop with the tenant in situ now.

0:39:440:39:47

So are you happy to keep the shop as it is downstairs

0:39:470:39:50

and keep the tenant?

0:39:500:39:51

We're not sure. We'll...

0:39:510:39:53

We know that we want to do up the flat and either sell it or let it.

0:39:530:39:58

More likely sell it, if we can get the right price.

0:39:580:40:00

Once we've done that,

0:40:000:40:02

we will then look at whether or not

0:40:020:40:04

we should sell on the shop down below to somebody

0:40:040:40:06

who is more interested in commercial or whether to keep it as

0:40:060:40:09

a small investment.

0:40:090:40:10

So the dice can keep rolling in the shop for now as Mike and Andrea want

0:40:120:40:16

to make their money on the flat, be that through selling or renting.

0:40:160:40:20

What are you going to do to try and turn this flat around?

0:40:220:40:24

Because it is incredibly dated.

0:40:240:40:26

Well, obviously, in the first place,

0:40:260:40:28

we were thinking to change the kitchen,

0:40:280:40:31

change the bathrooms,

0:40:310:40:34

but in the end, we will do minimum work.

0:40:340:40:37

Originally, we were going to do the whole lot,

0:40:370:40:39

and we have a budget of about 14,000, something like that,

0:40:390:40:42

in order to do everything and lovely new kitchens.

0:40:420:40:44

But we've spoken to a couple of local agents since we bought it and

0:40:440:40:48

they've more or less said, yes, that would add maybe 15,000 to the value.

0:40:480:40:52

But you're spending 12, 14, 15,000 in order to do it.

0:40:520:40:57

We're looking at almost three options.

0:40:570:40:58

One is luxe, do the whole lot, make it a beautiful flat,

0:40:580:41:02

and we could do that within the budget that we planned

0:41:020:41:04

from the very beginning, and that was where we were starting.

0:41:040:41:07

The second is to do a reasonable amount,

0:41:070:41:10

to make it look a lot cleaner and nicer.

0:41:100:41:12

The third one, though, which was the advice of one or the two agents that

0:41:120:41:15

we spoke to, was, in fact, I wouldn't bother to do anything.

0:41:150:41:18

They actually felt you could let this as it is.

0:41:180:41:20

They actually thought you could sell this as it is

0:41:200:41:23

for this market and this area.

0:41:230:41:25

Now, I was surprised, but I've got to be tempted to give them a chance

0:41:250:41:28

to do that and see if they can do what they've said and if they do

0:41:280:41:31

achieve what they said, that would be wonderful news

0:41:310:41:34

and if they don't, we do our work.

0:41:340:41:36

So is it almost experimental at this stage, isn't it?

0:41:360:41:39

You don't quite know what to do.

0:41:390:41:40

Well, it's not experimental.

0:41:400:41:42

It's incremental.

0:41:420:41:44

In other words, if we start off with an agent who comes in and says

0:41:440:41:48

we can sell it now for this good price...

0:41:480:41:51

-It's gone.

-..give them a chance.

-Yes.

0:41:510:41:52

If after six weeks...

0:41:520:41:54

It's going to be a bit boring for us, though, cos when we come back

0:41:540:41:56

we're not going to be seeing anything spectacular.

0:41:560:41:59

-I'm sorry about that.

-I want to know about that!

0:41:590:42:01

I know, but equally you will be seeing something of a different

0:42:010:42:04

way that you can do it sometimes.

0:42:040:42:06

So whatever plan they may choose,

0:42:060:42:08

Mike and Andrea plan to fix the flat roof terrace and estimate that it

0:42:080:42:12

will cost £2,000, but they have a maximum budget of 15 grand

0:42:120:42:16

should they go for the luxe option

0:42:160:42:18

and hoping any work won't take any longer than six weeks.

0:42:180:42:24

It's a prudent business partnership,

0:42:240:42:26

born out of - what's the phrase? -

0:42:260:42:28

a conscience uncoupling.

0:42:280:42:30

Well, we'd reached the end of marriage, I suppose,

0:42:320:42:34

at the very best way of putting it, but still good friends.

0:42:340:42:37

We had to sell the property in order to split the money up,

0:42:370:42:39

as you have to do at the end of a marriage,

0:42:390:42:42

and we did that together and we did up a property in London,

0:42:420:42:46

which was the one that we had as a home, and we enjoyed doing it

0:42:460:42:49

and we felt it went well.

0:42:490:42:51

We felt that the product that we sold at the end

0:42:510:42:53

was really very nice.

0:42:530:42:55

Why not see if we can do that again as a business?

0:42:550:42:57

-So you're working together as a business now?

-Yes.

-Yes.

0:42:570:42:59

And obviously you're both doing very well and enjoying it.

0:42:590:43:02

Well, we'll see...what's going to happen after this.

0:43:020:43:05

-This is your first investment together unmarried?

-Yes.

-Yes.

0:43:050:43:08

And you've both agreed so far

0:43:080:43:09

that this is the right investment for you?

0:43:090:43:11

We both agreed it looked the right investment.

0:43:110:43:14

We'll know if it was the right investment in a few months' time.

0:43:140:43:16

-When we come back and see, we'll find out.

-That's right.

-That's right.

0:43:160:43:19

Guys, this is such an interesting lot. What will you do here?

0:43:190:43:22

It'll be good to see when we come back. Thank you so much.

0:43:220:43:24

Great meeting you, Mike. Andrea, thank you.

0:43:240:43:26

-Nice to meet you.

-Good luck.

-Nice to meet you, too.

0:43:260:43:29

Well, this unusual lot has been bought by an unusual couple.

0:43:290:43:34

But Mike and Andrea have made a way to make their separation work

0:43:340:43:37

and they still enjoy working together,

0:43:370:43:40

so I suspect they will make this property work, too,

0:43:400:43:43

but which option will they go with?

0:43:430:43:46

Join me later in the programme and you can find out.

0:43:460:43:49

Well, that's one of our buyers sorted.

0:43:520:43:54

We still have two more to come.

0:43:540:43:56

Yes, stick with us to see if everything went to plan.

0:43:560:43:59

Yeah, and if it didn't, did they still make a profit?

0:43:590:44:01

Earlier in the show, I was in Chell,

0:44:060:44:09

a Staffordshire suburb of Stoke-on-Trent,

0:44:090:44:11

and this end-terrace two-bed was guided at £49,000 plus.

0:44:110:44:16

Dated decor betrayed the house's age,

0:44:180:44:21

but it had clearly been loved, with only a few problems.

0:44:210:44:25

The only issues I've seen so far is that little bit of damp and mould

0:44:270:44:31

and that crack, but that is it.

0:44:310:44:33

Lick of paint, new carpets, brand-new kitchen,

0:44:330:44:36

you'd be sorted down here.

0:44:360:44:38

# You wear it well

0:44:380:44:41

# Little old-fashioned, but that's all right. #

0:44:410:44:45

Eager to get this house a new lease of life was Alison,

0:44:480:44:51

who purchased the house for £63,000 with her partner Steve.

0:44:510:44:55

Alison had only seen the property through the window

0:44:570:45:00

before she made her bid for it, but I reckon she was lucky.

0:45:000:45:03

This house wasn't money down the drain,

0:45:040:45:07

which is just as well, as this is part of Alison's pension plan.

0:45:070:45:11

I'm getting to an age where I've got to think about retirement one day.

0:45:170:45:20

-No, no, no.

-I am, yes.

-Cut, I'm not accepting that!

0:45:200:45:23

Yep, so I just thought it's something there to boost my pension.

0:45:230:45:27

Is this the first of many, then?

0:45:270:45:29

-It could be.

-Is that what you're hoping?

0:45:290:45:31

It depends on how it goes.

0:45:310:45:33

Time to find out if it has been a success, then.

0:45:350:45:37

Six months later, we are back.

0:45:370:45:39

The outside has had some work,

0:45:430:45:44

with the driveway being re-laid and some security lights fitted.

0:45:440:45:49

What about the inside?

0:45:490:45:50

Well, the living room is more neutral

0:45:520:45:54

and the dated fireplace has gone.

0:45:540:45:56

I seem to recall Alison was not keen on the wooded wallpaper.

0:45:580:46:01

Upstairs, there is a bigger bathroom,

0:46:070:46:09

thanks to the removal of the water tank

0:46:090:46:12

and the bedrooms have been replastered,

0:46:120:46:15

plus no more dated carpet.

0:46:150:46:17

Thankfully, there is new flooring throughout.

0:46:170:46:19

The downstairs bathroom's '50s feel has been flushed away.

0:46:220:46:26

And the highlight for me,

0:46:260:46:28

a very bold kitchen, where the colour schemes

0:46:280:46:31

would make you green with envy.

0:46:310:46:33

Steve is a gas engineer, so I'm sure he's made this kitchen

0:46:470:46:50

greener in more ways than one.

0:46:500:46:52

So, I've took out the old inefficient boiler that was in the corner,

0:46:540:46:58

put in a more modern combi boiler in the downstairs loo.

0:46:580:47:01

We've refitted the kitchen totally with new cupboards,

0:47:010:47:04

allowed space for a washing machine by the sink and levelled the floor

0:47:040:47:08

up, which was totally uneven.

0:47:080:47:10

Upgrading the boiler and replacing the heating adds value,

0:47:120:47:16

but it also allowed for that bigger bathroom.

0:47:160:47:20

We took out the old central heating system that was linked

0:47:200:47:23

and they had it standing there, and all the tank work.

0:47:230:47:25

So we've revamped that by moving the toilet slightly, tiling it,

0:47:250:47:30

fitting a bath with a shower over it,

0:47:300:47:32

making the room generally bigger by relocating the door.

0:47:320:47:36

Alison and Steve certainly haven't stayed superficial

0:47:360:47:39

with this renovation,

0:47:390:47:40

with a major rewire and plastering throughout.

0:47:400:47:43

That has fixed the problems with the damp

0:47:440:47:47

and the cracks which have turned out to be nothing serious.

0:47:470:47:50

All seriously skilled trades, though, so who has done the work?

0:47:500:47:53

Steve did all the gas and the plumbing work.

0:47:550:47:58

I did a lot of taking off the plaster, repainting,

0:47:580:48:02

but we did get somebody in qualified to do the electrics

0:48:020:48:06

and we did get some help with the labour on re-laying the drive,

0:48:060:48:10

but apart from that, we did most of the work ourselves.

0:48:100:48:13

How has hiring outside contractors impacted on the eight grand budget?

0:48:150:48:19

We have spent closer to 10,000,

0:48:210:48:23

but we are quite pleased about that

0:48:230:48:26

because everybody sets themselves a budget, but in reality,

0:48:260:48:30

you always set it lower than you think.

0:48:300:48:32

And it's well within our budget to have done that.

0:48:320:48:36

I know all too well, Alison.

0:48:360:48:38

They always cost more than you think

0:48:380:48:39

and it often takes longer than expected.

0:48:390:48:42

Case in point here, with the work taking four months,

0:48:420:48:45

rather than the planned three.

0:48:450:48:46

Have they learned any other lessons from their first project together?

0:48:460:48:50

I think the most important thing to learn is to cost each of the jobs

0:48:520:48:57

before you actually do them

0:48:570:48:59

and to control what you'd like to do because sometimes what you'd like

0:48:590:49:03

to do to a property isn't necessarily going to

0:49:030:49:06

make any money, but apart from that,

0:49:060:49:08

it's just keeping a level head and not going overboard on things.

0:49:080:49:11

Spoken like a seasoned professional, Alison.

0:49:140:49:16

The couple are planning to sell their first development,

0:49:170:49:19

and that means they'll need the thoughts and valuations

0:49:190:49:22

of two local estate agents.

0:49:220:49:24

Let's start with the agent that saw it before the renovation.

0:49:240:49:27

This is my second visit to the property.

0:49:300:49:32

It's been done to a reasonable standard, it's neutral, clean,

0:49:320:49:35

fresh all the way through and it's what

0:49:350:49:37

you really would expect for this type of property.

0:49:370:49:39

I think the selling point of this property is that it's

0:49:390:49:42

in a good area, it's in a good commutable location

0:49:420:49:45

and it's been done to a very good standard

0:49:450:49:47

and it would suit first-time buyers.

0:49:470:49:49

Alison and Steve spent a total of £73,000 here.

0:49:510:49:55

So can they make a profit for their pension on the sales market?

0:49:550:49:58

I would expect this property to achieve somewhere in the region

0:50:010:50:03

of £85-£90,000.

0:50:030:50:06

I would place the property on the market in the region of £90,000.

0:50:060:50:10

The sales figures, we're really quite pleased with.

0:50:100:50:13

That's probably a bit more than what we were expecting,

0:50:130:50:15

so that's quite nice, isn't it?

0:50:150:50:17

Yeah. I'm happy with that cos we had hoped for at least 85,

0:50:170:50:20

but if we can squeeze a bit more out of it,

0:50:200:50:22

everybody is happy with a bit more pound in the pocket, aren't they?

0:50:220:50:26

More pounds in your pocket, indeed, Steve.

0:50:280:50:30

At a resale value of £90,000,

0:50:300:50:32

you'll need some pretty big pockets, too,

0:50:320:50:35

as that gives them a £17,000 profit before usual taxes and expenses.

0:50:350:50:39

With this having gone well, are they going to tackle another?

0:50:410:50:44

Turn a quick sale on it, get into another property and move forward.

0:50:470:50:51

Probably a larger scale if we could but, you know,

0:50:510:50:53

you got to get some money in to make that happen.

0:50:530:50:56

Ambitious, I like it. And good luck to you both.

0:50:570:51:00

We're docking in Dover in Kent, where earlier in the show,

0:51:090:51:12

I saw an unusual lot guided at 90 to 95,000.

0:51:120:51:17

Half of the lot was a maisonette flat

0:51:170:51:19

that needed modernising and work on its roof terrace area.

0:51:190:51:22

The other half was the lease for the downstairs shop

0:51:230:51:26

that was already tenanted,

0:51:260:51:28

so a property of two halves, and it was bought by Andrea and Mike

0:51:280:51:32

for bang-on the lower end of the guide price of £90,000.

0:51:320:51:36

# I know what you want, you want the better of two halves. #

0:51:360:51:45

And talking of halves, these two had been each other's better halves,

0:51:450:51:48

having once been married.

0:51:480:51:50

However, they actually discovered a joint talent and love for property

0:51:500:51:53

development while settling their divorce.

0:51:530:51:56

Having bought this flat to do up and sell, after taking advice,

0:51:560:52:00

they had to decide on a game plan.

0:52:000:52:02

We're looking at almost three options.

0:52:020:52:04

One is luxe, do the whole lot, make it a beautiful flat.

0:52:040:52:08

The second is to do a reasonable amount to make it look a lot cleaner

0:52:080:52:12

and nicer. The third one, though,

0:52:120:52:14

which was the advice of one or two of the agents that we spoke to was,

0:52:140:52:17

in fact, I wouldn't bother to do anything.

0:52:170:52:19

They actually felt you could let this as it is.

0:52:190:52:21

They actually thought you could sell this as it is for this market

0:52:210:52:24

and this area. If after six weeks...

0:52:240:52:26

It's going to be a bit boring for us, though, cos when we come back,

0:52:260:52:29

-we're not going to be seeing anything spectacular.

-I'm sorry about that.

0:52:290:52:32

-I want to know about that.

-I know, but, equally,

0:52:320:52:34

you will be seeing something of a different way that

0:52:340:52:36

you can do it sometimes.

0:52:360:52:38

So, would we see a very different way of doing things?

0:52:380:52:41

Nine months on, way over their six- to eight-week timescale,

0:52:410:52:45

we're back, and I would like to see option number one, the full refurb.

0:52:450:52:50

Don't break my heart, Mike and Andrea.

0:52:500:52:54

# I should have known from the start... #

0:52:540:52:58

I had a feeling at the beginning that it would be minimal work,

0:52:580:53:02

and the couple's only major undertaking had been to repair

0:53:020:53:05

the roof terrace.

0:53:050:53:06

Worse still, the games shop downstairs has gone.

0:53:060:53:09

# Quit playing games with my heart. #

0:53:160:53:20

With Andrea busy with work, it falls to Mike to explain what's happened.

0:53:200:53:25

All we've really done is to look at the balcony outside, which is a nice

0:53:290:53:34

large open area, we've put some balustrades in around there,

0:53:340:53:37

we've improved the surface there

0:53:370:53:39

so it doesn't leak into the shop down below.

0:53:390:53:41

Beyond that, we've made sure that the boiler's safe,

0:53:410:53:44

made sure the electrics are safe.

0:53:440:53:45

But it's been small things like that.

0:53:450:53:47

Unfortunately, as far as the shop's concerned, the tenant had to leave.

0:53:470:53:51

She was a lovely tenant to have.

0:53:520:53:54

We were really sorry to lose her,

0:53:540:53:56

but for personal reasons and to her business,

0:53:560:53:58

she had to give notice, so the shop is, at the moment, empty.

0:53:580:54:01

So why did they opt to do only the minimum work?

0:54:040:54:07

Well, we really wanted to renovate the maisonette at the beginning

0:54:090:54:12

partly because we thought it would improve the value

0:54:120:54:14

and partly cos, again, it would be part of us doing the part of the job

0:54:140:54:18

we love which is actually refurbishing and getting it right.

0:54:180:54:21

But the advice we got from almost every local agent was it would not

0:54:210:54:25

increase the value of the flat by the amount of money we spent.

0:54:250:54:29

And there is no point in doing extra work in order to make less money.

0:54:290:54:32

I agree, Mike. I have a motto.

0:54:340:54:36

Don't just speculate to accumulate,

0:54:360:54:38

speculate where appropriate.

0:54:380:54:40

It must be true because it rhymes and everything, doesn't it?

0:54:400:54:43

No. OK, their budget was £15,000 for the full works and two grand for

0:54:430:54:48

just the roof, so what did they spend in the end?

0:54:480:54:52

Now, THAT rhymes.

0:54:520:54:53

Our total refurbishment budget, if we can call it refurbishment,

0:54:550:54:58

has come in at about 2,900, £3,000.

0:54:580:55:02

But why has it taken nine months to get to this point?

0:55:030:55:06

Well, the works were done within the six to eight weeks

0:55:080:55:10

that we were talking about, then we spoke to the local agents.

0:55:100:55:14

Basically, we've been reducing the price

0:55:140:55:16

until we got back down to a more realistic price, which is about now.

0:55:160:55:20

So, six to eight weeks to do the work and seven months on the market,

0:55:220:55:26

but I'm pleased to say there is a happy end to the story.

0:55:260:55:29

And we've actually ended up finding

0:55:320:55:34

a buyer for both the shop and the flat together for 119,000.

0:55:340:55:38

And we're fairly happy with that.

0:55:380:55:40

£119,000 would give Mike and Andrea

0:55:440:55:48

a £26,000 pre-tax profit against their total £93,000 spend.

0:55:480:55:54

Time to ask two local estate agents if there was more they could

0:55:540:55:58

have done to increase the price.

0:55:580:55:59

My first impressions are it's very spacious,

0:56:040:56:07

it's got a lot of potential.

0:56:070:56:08

If I were putting the property on the market,

0:56:080:56:11

I would suggest to neutralise upstairs

0:56:110:56:12

because I think that is beneficial to any prospective purchaser.

0:56:120:56:16

Selling the property as a whole is the best solution.

0:56:160:56:21

For example, if we did

0:56:210:56:22

sell the flat on its own,

0:56:220:56:24

I believe the mortgage company might have problems with lending,

0:56:240:56:28

and that's due to the nature of the unknown factor

0:56:280:56:30

of what that shop could be.

0:56:300:56:32

Top tips, but is £119,000 the right price?

0:56:330:56:38

Is there room for more profit?

0:56:380:56:40

Is there more profit possible against that £93,000 spent?

0:56:400:56:45

I believe the figure that we could sell the whole property on for

0:56:470:56:50

would be around about £125,000.

0:56:500:56:53

If this whole property was put on the open market,

0:56:530:56:55

I would be expecting to achieve

0:56:550:56:58

between 125,000 and £130,000.

0:56:580:57:01

That sounds reasonably realistic.

0:57:010:57:04

We had advice to put it on for more.

0:57:040:57:06

We had an offer for the maisonette on its own for 80,000.

0:57:060:57:10

But we've decided to proceed with an offer

0:57:100:57:12

for the whole property instead.

0:57:120:57:14

£130,000 would be a 37 grand profit before the usual taxes and expenses.

0:57:150:57:22

Maybe they could achieve that by following the estate agent tips.

0:57:220:57:26

But Mike and Andrea are keen to complete the deal

0:57:260:57:29

and move on to another property

0:57:290:57:31

they can really get their teeth into.

0:57:310:57:33

Unfortunately, Andrea can't be here today because she's working, but if

0:57:370:57:41

she was here, I think she'd say that she is happy with the way

0:57:410:57:44

that things have gone generally, but we hope that the next one we buy,

0:57:440:57:47

she can put more of her own stamp on it

0:57:470:57:50

in terms of the renovation work, etc.

0:57:500:57:53

Well, no matter how simple things seem at the outset,

0:57:570:58:00

there can be problems when you get into property.

0:58:000:58:03

Ah, yes, you've got to be prepared for the things

0:58:030:58:05

you didn't see coming.

0:58:050:58:06

Yes, so for more tales of the unexpected,

0:58:060:58:08

join us here again for more Homes Under The Hammer.

0:58:080:58:11

-Goodbye.

-Goodbye.

-Goodbye.

0:58:110:58:13

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