Episode 2

Download Subtitles

Transcript

0:00:02 > 0:00:04Hello and welcome to the programme. I don't know about you guys,

0:00:04 > 0:00:06but I love properties with a bit of character,

0:00:06 > 0:00:08and if they're a bit quirky, you know?

0:00:08 > 0:00:11Yeah, it doesn't matter how unique a property is,

0:00:11 > 0:00:13there'll be somebody out there it's perfect for.

0:00:13 > 0:00:15Yeah, that's the beauty of the business.

0:00:15 > 0:00:17Variety is the spice of life

0:00:17 > 0:00:20and maybe you can find your next property under the hammer.

0:00:46 > 0:00:48Auction catalogues can be overwhelming,

0:00:48 > 0:00:50with hundreds of lots. It's hard to know where to start.

0:00:50 > 0:00:52And if competition is fierce, well,

0:00:52 > 0:00:56it can be a real bidding battle to get the property you want.

0:00:56 > 0:01:00Yeah, so let's meet the three buyers who won their lots on today's show.

0:01:02 > 0:01:06In this Derby three-bed house, there is a difference in measurements.

0:01:06 > 0:01:10That seems bigger - wider - than downstairs.

0:01:12 > 0:01:14And, in London, there are some differing opinions

0:01:14 > 0:01:16with two sibling property developers.

0:01:16 > 0:01:19- I don't... - I will be project-managing.

0:01:19 > 0:01:21- I thought I was.- No.

0:01:21 > 0:01:24And, in Warrington, the buyer of this flat thinks

0:01:24 > 0:01:28a distance of 6,000 miles makes no difference at all.

0:01:28 > 0:01:30Well, I was... I was sitting at home in Cape Town.

0:01:30 > 0:01:32Adrian was there bidding on my behalf.

0:01:32 > 0:01:35All these properties have been sold at auction.

0:01:35 > 0:01:38We'll find out who bought them and what they paid for them

0:01:38 > 0:01:40when they went under the hammer.

0:01:40 > 0:01:41Sold.

0:01:44 > 0:01:49Today, I'm in northeast Derby, and the suburb of Chaddesden.

0:01:50 > 0:01:53This lovely parish church is a Grade I listed building,

0:01:53 > 0:01:57which dates back to the mid-14th century.

0:01:57 > 0:01:59I'm in Chaddesden,

0:01:59 > 0:02:03on an estate consisting largely of ex-local authority houses,

0:02:03 > 0:02:07to see what's described in the catalogue as a "mid-townhouse",

0:02:07 > 0:02:10but you could call it a mid-terrace if you like,

0:02:10 > 0:02:11but £60,000, three bedrooms...

0:02:11 > 0:02:14It sounds like a very interesting investment opportunity.

0:02:17 > 0:02:22So, I'm expecting nice-sized rooms, solid walls -

0:02:22 > 0:02:24the usual things you get in an ex-local authority property.

0:02:24 > 0:02:27And, sure enough, through the front door, stairs facing you

0:02:27 > 0:02:30up to the bedrooms, then into your main living area.

0:02:30 > 0:02:32Looks like we've got double glazing.

0:02:32 > 0:02:35No, it actually looks like we've got a radiator.

0:02:35 > 0:02:37It's the hottest day of the year.

0:02:37 > 0:02:40It's not surprising I'm confusing a radiator with double glazing.

0:02:40 > 0:02:43It doesn't matter. Ha-ha(!) Lovely. Double radiator, that was it!

0:02:43 > 0:02:46Second word, not glazing, is radiator.

0:02:46 > 0:02:48So, it looks like we've at least got central heating. Phew.

0:02:48 > 0:02:50One thing we don't have, oh, look, is double glazing.

0:02:50 > 0:02:53Could that be more wrong if I tried? I don't know.

0:02:53 > 0:02:55Anyway, let's assume not.

0:02:55 > 0:02:58Passing through the room with the double radiator,

0:02:58 > 0:03:00one of my favourite features so far,

0:03:00 > 0:03:03and we come to the rear of the property.

0:03:03 > 0:03:05At the back is this dining area, which is quite pleasant,

0:03:05 > 0:03:08and then somebody's done something quite imaginative -

0:03:08 > 0:03:11they've built an extension on the back, extending the size of

0:03:11 > 0:03:14the kitchen and turning it into a really lovely

0:03:14 > 0:03:16family, sort of, living area.

0:03:16 > 0:03:19So, as downstairs go, and as central heating systems go,

0:03:19 > 0:03:21it's all looking brilliant.

0:03:22 > 0:03:25There's a double radiator, too, in what used to be the kitchen.

0:03:28 > 0:03:30A few things need replacing

0:03:30 > 0:03:34but the majority would clean up to be brilliant enough for letting.

0:03:36 > 0:03:38There is even space for a small office under the stairs.

0:03:38 > 0:03:41As I said, brilliant.

0:03:41 > 0:03:44MUSIC: Brilliant by Ultravox

0:03:47 > 0:03:52So, upstairs, three bedrooms - smallish one there.

0:03:52 > 0:03:54Good-sized double bedroom at the front.

0:03:54 > 0:03:58Bathroom and loo up here, which is good news.

0:03:58 > 0:04:00Obviously, they could do with updating.

0:04:00 > 0:04:04But at least all the facilities, the sewage pipes, the rest of the

0:04:04 > 0:04:08pipework, they're all in the right place to make that job fairly easy.

0:04:08 > 0:04:11And then through into your rear bedroom. Sounds pretty good.

0:04:12 > 0:04:13Hmm.

0:04:15 > 0:04:20There's something not quite right here. Upstairs, the house...

0:04:20 > 0:04:25The bedroom's here. That seems bigger - wider - than downstairs.

0:04:27 > 0:04:29I need to check that out.

0:04:29 > 0:04:32MUSIC: Mambo No. 5 instrumental

0:04:40 > 0:04:42Three. Three.

0:04:42 > 0:04:46One, two, three, four, five.

0:04:47 > 0:04:49So it's three metres, roughly, wide,

0:04:49 > 0:04:53from that same point downstairs - it's five metres up here.

0:04:53 > 0:04:57What is going on? I need to head outside to find out.

0:04:58 > 0:05:01Well, I think I might have found my answer

0:05:01 > 0:05:03because, at the side of the property,

0:05:03 > 0:05:06there is actually this little passageway that links front to back,

0:05:06 > 0:05:11and above it is where that extra bit of the bedrooms is situated.

0:05:11 > 0:05:14So, what you've got is a classic case of a flying freehold.

0:05:14 > 0:05:16Now, that's not necessarily an issue,

0:05:16 > 0:05:20but it's really important to discover who actually owns

0:05:20 > 0:05:22and has access through this passageway,

0:05:22 > 0:05:23and who owns this bit of land.

0:05:23 > 0:05:26That should be in the title deeds, something which your solicitor

0:05:26 > 0:05:29should easily be able to check out, but you do need to know.

0:05:31 > 0:05:33Especially as mortgage lenders can be

0:05:33 > 0:05:36put off by the presence of a flying freehold.

0:05:36 > 0:05:38For instance, it raises questions of who's

0:05:38 > 0:05:41responsible for maintaining the ground underneath.

0:05:41 > 0:05:46# Fear of flying... #

0:05:48 > 0:05:52So, at the back, and a pretty decent-sized rear garden,

0:05:52 > 0:05:55although clearly it could do with a bit of a hedge-trim, but it's

0:05:55 > 0:05:58a nice-sized space for what could be a really pleasant family home.

0:05:58 > 0:06:00And also, we get to see the extension.

0:06:00 > 0:06:02Now, I like the way this has been done.

0:06:02 > 0:06:06Obviously, it matches the brickwork of the original property,

0:06:06 > 0:06:09so that's good. But, of course, with any extension,

0:06:09 > 0:06:11you want to make sure that it was built properly,

0:06:11 > 0:06:13so did it have foundations that were right?

0:06:13 > 0:06:15Has it got damp-proofing? All that kind of stuff.

0:06:15 > 0:06:17You also want to know that they obtained the correct

0:06:17 > 0:06:19planning permissions and followed

0:06:19 > 0:06:20building regulations when it was built.

0:06:20 > 0:06:23All that kind of information should be in the legal pack,

0:06:23 > 0:06:25so whenever you see an extension, make sure that you

0:06:25 > 0:06:28double-check the legal pack to see the things like

0:06:28 > 0:06:30planning permission and building regulations approval

0:06:30 > 0:06:31have been included.

0:06:34 > 0:06:37We asked a property expert at the auction house that sold

0:06:37 > 0:06:40the property to come and give us the benefit of his local knowledge.

0:06:40 > 0:06:41To start with,

0:06:41 > 0:06:45what sort of market would this property best be suited to?

0:06:45 > 0:06:47Because of the type of property it is -

0:06:47 > 0:06:51it's an ex-local authority house - and because of where it is,

0:06:51 > 0:06:53I think there's no doubt about it,

0:06:53 > 0:06:56that this will appeal to the rental market,

0:06:56 > 0:07:00and there is a strong demand for rented accommodation here.

0:07:00 > 0:07:03So, the likely prospect is the lettings market but,

0:07:03 > 0:07:06if an outright sale could be made, after refurbishing,

0:07:06 > 0:07:10what's the potential for this £60,000-guided property?

0:07:11 > 0:07:13I would say, once renovated,

0:07:13 > 0:07:18you'd put this on the market sensibly at no more than £79,950.

0:07:18 > 0:07:20You may have to drop to £75,000 to sell it

0:07:20 > 0:07:23but that would be about as far as it could go.

0:07:23 > 0:07:27Not much room, then, for the costs of refurbishment and profit.

0:07:27 > 0:07:29What about rental income?

0:07:29 > 0:07:35In terms of rental value, renovated, it's £475-£500 a calendar month.

0:07:37 > 0:07:41Well, a few things to check out in the legal pack on this one -

0:07:41 > 0:07:43the flying freehold, and the planning permission

0:07:43 > 0:07:45and building regulations for that extension.

0:07:45 > 0:07:48Apart from that, though, a good, solid house at a good price.

0:07:48 > 0:07:50Yeah, an interesting investment.

0:07:50 > 0:07:52Let's see who agreed when it went under the hammer.

0:07:53 > 0:07:58We come back into Derby. Lot 48 in Chaddesden.

0:07:58 > 0:08:02It's a gas centrally-heated, three-bedroomed mid-townhouse.

0:08:02 > 0:08:06It's got a good investment potential and it's a vacant freehold property.

0:08:06 > 0:08:09Start me where you like with this one. May I say 60,000?

0:08:09 > 0:08:1458, then, to put it into the bidding? 58? Thank you. £58,000.

0:08:14 > 0:08:1858, I've got as a start. 59, I'm looking for. 59 is bid there.

0:08:18 > 0:08:20At 59,000, and 60, £60,000...

0:08:22 > 0:08:24Having eventually reached the guide price,

0:08:24 > 0:08:29the bidding continues to where we rejoin at 62,500.

0:08:29 > 0:08:3362.5, 63, 63.5,

0:08:33 > 0:08:3763.5, 64, 64.5,

0:08:37 > 0:08:4464.5, 65? 65.5. 66.

0:08:44 > 0:08:5066.5. 66,500? Sure?

0:08:50 > 0:08:53All done. Sold at 66,500.

0:08:57 > 0:09:00The successful bidder was Darren, who is local to the area.

0:09:02 > 0:09:05He bought his first property here eight years ago

0:09:05 > 0:09:09and has been getting experience in refurbishment since then.

0:09:09 > 0:09:15We met up at his latest £66,500 purchase.

0:09:15 > 0:09:17- Darren, good to meet you. - And you.- Congratulations.

0:09:17 > 0:09:20- Thank you very much.- Tell me why you wanted to buy this house.

0:09:20 > 0:09:22Erm, just the area.

0:09:22 > 0:09:26- I've got one down the road. The daughter wants this one.- Oh?

0:09:26 > 0:09:28- How old's your daughter? - Not my daughter.

0:09:28 > 0:09:31The tenant that I've got down the road - it's her daughter.

0:09:31 > 0:09:34Oh. Now, that's interesting, because that sometimes happens, doesn't it,

0:09:34 > 0:09:36- to landlords?- Yeah. - If you've been a good landlord

0:09:36 > 0:09:39- they pass the message on down the family.- Yes.

0:09:39 > 0:09:41Right. So, did you know that before you bought it or...?

0:09:41 > 0:09:44- Yes. Yeah, yeah.- So, you bought it with that in mind.- Mm-hm.

0:09:44 > 0:09:47- Tell me more about you. What do you do?- I'm a local builder.

0:09:47 > 0:09:49I work for the local council authority,

0:09:49 > 0:09:56doing disabled adjustments to properties, wet rooms, extensions...

0:09:56 > 0:09:58I love it and this was a bit of a hobby.

0:09:58 > 0:10:00- You've built up a portfolio of properties over time?- Yeah,

0:10:00 > 0:10:03I started eight years ago and bought one just down the road,

0:10:03 > 0:10:05which I bought for my young lad.

0:10:05 > 0:10:06- Right.- Who's 13 now.

0:10:06 > 0:10:09- Right.- Just to give him a bit of a kick-start in life.- Oh, wow.

0:10:09 > 0:10:13So, yeah, I loved it that much, I got a bit of a bug.

0:10:13 > 0:10:15So, tell me why you wanted the specific house.

0:10:15 > 0:10:17Just the tenant was ready and waiting.

0:10:17 > 0:10:19It's on the doorstep to where I live and,

0:10:19 > 0:10:23if there is an issue or problem, I can be here in 10-20 minutes.

0:10:23 > 0:10:27So I just like to keep all of them in the same location.

0:10:27 > 0:10:30Yeah, well, I mean, there is a strategy that works.

0:10:30 > 0:10:31That makes perfect sense.

0:10:31 > 0:10:34So, the fact that you've already got somebody lined up to come in here,

0:10:34 > 0:10:36do they get some input into what you do here?

0:10:36 > 0:10:39Yeah, definitely, no, the thing that I've learnt through doing them

0:10:39 > 0:10:42is I try and get the tenant involved from day dot.

0:10:42 > 0:10:45She will come in and she's going to paint and things like that.

0:10:45 > 0:10:47- Oh, right?- A choice of carpets.

0:10:47 > 0:10:50If they've done a bit to it, it feels their...their own place.

0:10:50 > 0:10:51What a great idea.

0:10:51 > 0:10:54Does that add to your budget at all, or does it make any difference?

0:10:54 > 0:10:56Slightly, slightly, but it's just, I mean...

0:10:56 > 0:11:00Just, having the respect for the property, it pays off long-term.

0:11:00 > 0:11:03So, obviously, this one, tell me what you're going to do to it.

0:11:03 > 0:11:07Erm, possibly clean the kitchen up, give it a good scrub.

0:11:07 > 0:11:10It's not that old when the extension was done, it was fitted.

0:11:10 > 0:11:13We need a new boiler going in as we've got the old back boiler.

0:11:13 > 0:11:16A few new windows at the front that have not been done yet.

0:11:16 > 0:11:18- New front door and decor, carpets... - Right.

0:11:18 > 0:11:21Obviously, the bathroom is where it needs to be, upstairs.

0:11:21 > 0:11:23Yeah, the bathroom in the right place.

0:11:23 > 0:11:27I can't make my mind up whether it will be replaced as yet, but, yeah,

0:11:27 > 0:11:31a good chop down in the bushes in the back, so we can see the grass.

0:11:31 > 0:11:34- But, yeah.- So, what do you know about the passage at the side,

0:11:34 > 0:11:36with the, sort of, potential flying freehold?

0:11:36 > 0:11:39Yeah, well, I knew from the beginning that the passage

0:11:39 > 0:11:42was owned by this property and, obviously,

0:11:42 > 0:11:44the bedrooms fly over the top of the passageway.

0:11:44 > 0:11:47- Yeah.- But it's actually not a flying freehold issue, then, because...

0:11:47 > 0:11:51- No, no, no. Yeah, we own the ground below.- Yeah.

0:11:51 > 0:11:54Thankfully, the passageway isn't an issue,

0:11:54 > 0:11:57but the same can't be said for the rear extension.

0:11:58 > 0:12:00I think it was the solicitor that picked it up,

0:12:00 > 0:12:04that there was no planning or building control was

0:12:04 > 0:12:06applied for, but, being in the trade, I knew it would...

0:12:06 > 0:12:09Some things were possible, like an insurance indemnity

0:12:09 > 0:12:11and things like that, which has been taken out for it.

0:12:11 > 0:12:18- How much does the insurance cost? - £14.10.- £14.10?- £14.10, yeah.

0:12:18 > 0:12:21- That's a crazy amount of money, isn't it?- Well, it is.

0:12:21 > 0:12:23It's one thing that I hoped I didn't miss it in the pack,

0:12:23 > 0:12:25cos I'd be kicking myself, but at that price,

0:12:25 > 0:12:27I knew it was similar to the property I live in now.

0:12:27 > 0:12:29It was a similar thing I had to take out on that.

0:12:29 > 0:12:33The idea is the insurance would cover the cost of rectifying

0:12:33 > 0:12:35the work if the council decided

0:12:35 > 0:12:37you were in breach of building regulations.

0:12:37 > 0:12:41If you do end up with work done without planning permission

0:12:41 > 0:12:44and it doesn't fall within permitted development,

0:12:44 > 0:12:47you can apply for retrospective planning permission but, really,

0:12:47 > 0:12:50to avoid hassle, always consult the council.

0:12:52 > 0:12:56- What kind of budget is there?- About £3,500-£4,000.- OK. A timescale?

0:12:56 > 0:12:59- The electrician's coming tonight. - Oh, is he? Oh, wow.- Yeah.

0:12:59 > 0:13:01What's he doing? Is he checking it out?

0:13:01 > 0:13:04He's going to fit the smokes, check the electrics, so we have

0:13:04 > 0:13:08smokes and heat detectors where we need them, and a general check over.

0:13:08 > 0:13:10- Right.- But, yeah, the...

0:13:10 > 0:13:13- The tenant's going to start painting next week.- Wow.

0:13:13 > 0:13:15And when do they start paying rent?

0:13:15 > 0:13:19Sometimes I give them a week free rent just to get in there, possibly

0:13:19 > 0:13:24two weeks, but, yeah, hopefully, in two or three weeks, the rent.

0:13:24 > 0:13:26- Great, well, listen, congratulations.- Yes.

0:13:26 > 0:13:30- Thank you very much.- I look forward to seeing how you get on.- Thank you.

0:13:32 > 0:13:34Yeah, so, there you go,

0:13:34 > 0:13:37another property tip you've learnt on Homes Under The Hammer.

0:13:37 > 0:13:39If you're thinking of renting out your property,

0:13:39 > 0:13:42why not get your incoming tenant to choose how you do it?

0:13:42 > 0:13:46It makes perfect sense and they'll even pick up a paintbrush.

0:13:46 > 0:13:47So, with the tenant's help,

0:13:47 > 0:13:50how will Darren get on sorting this place out?

0:13:50 > 0:13:51You can find out later in the show.

0:13:56 > 0:13:57I'm in the city of Westminster,

0:13:57 > 0:14:02close to one of the BBC's earliest buildings, Maida Vale Studios,

0:14:02 > 0:14:06where thousands of music recordings have been made, including this one.

0:14:06 > 0:14:09SWING MUSIC

0:14:09 > 0:14:12London's Maida Vale got its name from a public house named

0:14:12 > 0:14:15after John Stuart, Count of Maida,

0:14:15 > 0:14:20which opened soon after the Battle of Maida in 1806.

0:14:20 > 0:14:24Nowadays, this affluent area has some lovely cafes

0:14:24 > 0:14:27and restaurants and it's made up mostly of large,

0:14:27 > 0:14:31late Victorian and Edwardian blocks of mansion flats.

0:14:31 > 0:14:33You might have guessed it - a sought-after place to live,

0:14:33 > 0:14:36and property prices here, they don't come cheap.

0:14:38 > 0:14:41They certainly don't, and the average value of a flat

0:14:41 > 0:14:47in this desirable area currently stands at over £700,000.

0:14:47 > 0:14:50The flat I'm here to see is in this building, here.

0:14:50 > 0:14:53It had a guide price of £340,000,

0:14:53 > 0:14:56and it's described as having three rooms.

0:14:56 > 0:14:58Now, what does that mean, I wonder?

0:14:58 > 0:15:00Well, it is on the ground floor,

0:15:00 > 0:15:02so I haven't got to walk far to find out.

0:15:04 > 0:15:07This is a handsome Art Deco building, no less

0:15:07 > 0:15:11a fashionable residence today than it was back in the 1920s and '30s.

0:15:13 > 0:15:16Although parking is forbidden in the surrounding roads,

0:15:16 > 0:15:19around the back are some car parking spaces,

0:15:19 > 0:15:22but they are allocated, so it really is first-come, first-served.

0:15:29 > 0:15:32Right, I'm quite intrigued to find out the layout of this property.

0:15:32 > 0:15:35It's small, it's quite angular and awkward.

0:15:35 > 0:15:37You've got a wall slanted there.

0:15:37 > 0:15:41So, this is what it means by "three rooms".

0:15:41 > 0:15:44A rather small bedroom there. Lots of cupboard space here,

0:15:44 > 0:15:48which I would get rid of instantly to open up this hallway.

0:15:48 > 0:15:50A ridiculously small...

0:15:50 > 0:15:54I wouldn't even call it a box room, because it's tiny. It's a...

0:15:54 > 0:15:56It's a coat cupboard. It's a very small room.

0:15:56 > 0:16:00I would never call that a bedroom, so that's a rather weird space.

0:16:00 > 0:16:02You've also got a bathroom on the back wall, here,

0:16:02 > 0:16:04and into the main living area.

0:16:04 > 0:16:08Now, I'm guessing that this kitchen probably used to live in that

0:16:08 > 0:16:12rather small room, and somebody's opened this up to call it

0:16:12 > 0:16:15two bedrooms, although you can't really call that two bedrooms.

0:16:15 > 0:16:20I'm not sure if this works, lined up along the back wall.

0:16:20 > 0:16:22This is the only source of heat at the moment,

0:16:22 > 0:16:24so that will need to be upgraded.

0:16:24 > 0:16:28And I'm just wondering, if you could knock this wall down,

0:16:28 > 0:16:30and incorporate the very tiny,

0:16:30 > 0:16:34little room next door into this space, and put the kitchen back

0:16:34 > 0:16:38in there, you could have a really nice, open-plan, L-shaped space.

0:16:38 > 0:16:41You could put the kitchen back. You'd have two lovely windows.

0:16:41 > 0:16:44It would make it lighter and brighter.

0:16:44 > 0:16:48And I just think a one-bedroom flat, rather than a very small,

0:16:48 > 0:16:51compromised two-bedroom flat, would be so much better.

0:16:53 > 0:16:56The compactness of what should be described as a one-bedroom flat

0:16:56 > 0:16:58could certainly be improved upon.

0:16:58 > 0:17:03Leaving the configuration as it is really is a nonstarter for me.

0:17:03 > 0:17:07Even if it was occupied by just one person, I think they'd be saying...

0:17:07 > 0:17:09# Small world... #

0:17:11 > 0:17:14Opinions are divided when it comes to

0:17:14 > 0:17:16the popularity of ground-floor flats,

0:17:16 > 0:17:18but the general consensus is that

0:17:18 > 0:17:23they are less desirable than being, let's say, on the first floor.

0:17:23 > 0:17:27A lack of security is often cited as a major concern,

0:17:27 > 0:17:29so no leaving your windows open on a hot summer's day

0:17:29 > 0:17:31when you pop out for that pint of milk.

0:17:31 > 0:17:33However, there are some positives, too.

0:17:33 > 0:17:35They are easier to access,

0:17:35 > 0:17:37opening them up to a wider range of residents.

0:17:37 > 0:17:40Plus, you really don't have to traipse up and down those

0:17:40 > 0:17:44flights of stairs and worry about, maybe, lifts not working.

0:17:44 > 0:17:47Really, well, there are no hard and fast rules,

0:17:47 > 0:17:50and I think it all comes down to personal preference.

0:17:52 > 0:17:55We invited a local estate agent along to get his opinion

0:17:55 > 0:17:59on this three-roomed flat and to see what his view would be on making it

0:17:59 > 0:18:03a two-roomed flat, bearing in mind that this is a leasehold property.

0:18:05 > 0:18:07If you wanted to change any configurations of the flat,

0:18:07 > 0:18:10you would either need the management agent's consent or...

0:18:10 > 0:18:12the freeholder's consent.

0:18:12 > 0:18:15It's not just the number of rooms that buyers look out for.

0:18:15 > 0:18:20Other factors influence the value of this property, guided at 340,000.

0:18:22 > 0:18:24Whether it's a one-bedroom or a two-bedroom,

0:18:24 > 0:18:26it doesn't really matter.

0:18:26 > 0:18:30Flats in this area tend to go by pound per square foot,

0:18:30 > 0:18:33so I would say, as a one-bed or two-bedroom,

0:18:33 > 0:18:37you're probably looking in the region of £500,000.

0:18:37 > 0:18:39That's fully refurbished, of course,

0:18:39 > 0:18:43but plenty of scope there if you can get it for the guide.

0:18:43 > 0:18:44Now, what about rental?

0:18:46 > 0:18:47Once totally renovated,

0:18:47 > 0:18:53I would think you'll be looking at around £1,700 per calendar month.

0:18:53 > 0:18:57Well, there's not much of a kitchen, a second bedroom or a hallway, here.

0:18:57 > 0:19:00Compact is the way I would describe it at the moment.

0:19:00 > 0:19:02Still, with some layout changes,

0:19:02 > 0:19:05it could be transformed into a lovely bijou home

0:19:05 > 0:19:07for someone in the capital.

0:19:07 > 0:19:10Who agreed? Let's find out and head to the auction.

0:19:11 > 0:19:15Lot ten, Maida Vale, W9.

0:19:15 > 0:19:17Who'd like to start off on this?

0:19:17 > 0:19:22I'll start at three... I don't know, 320? Go from there.

0:19:22 > 0:19:28The 320, anywhere? 320, with you, madam. 325, elsewhere?

0:19:28 > 0:19:31The guide price is soon overtaken

0:19:31 > 0:19:35and we rejoin the bidding at £417,000.

0:19:35 > 0:19:42417. 418. 419. 420.

0:19:42 > 0:19:46420, madam? 421. 422.

0:19:46 > 0:19:48Well done. 423?

0:19:50 > 0:19:54It's Maida Vale. 423. 424.

0:19:54 > 0:19:57424. 425.

0:19:59 > 0:20:00426.

0:20:02 > 0:20:05Lady on my left, 425.

0:20:05 > 0:20:07First time... Second time...

0:20:07 > 0:20:10Third and last time...

0:20:10 > 0:20:12Sold, 425, madam.

0:20:14 > 0:20:17And the successful bidders, paying significantly over

0:20:17 > 0:20:22the guide price at 425,000, were brother and sister David and Lorena.

0:20:24 > 0:20:28David has a background in IT and Lorena is a dancer.

0:20:28 > 0:20:31They've both dabbled in property independently as well

0:20:31 > 0:20:34as together, and they joined me back at the flat to tell me

0:20:34 > 0:20:36about their latest joint venture.

0:20:38 > 0:20:41Guys, congratulations. Lovely to meet you today,

0:20:41 > 0:20:42- Lorena and David. - Lovely to meet you.

0:20:42 > 0:20:44- So, who found this property, then? - We both found it.

0:20:44 > 0:20:47- We were going through an auction catalogue.- Yeah.

0:20:47 > 0:20:49And we picked out about five or six properties that

0:20:49 > 0:20:52had potential for renovation

0:20:52 > 0:20:55and this one was the one we ended up with.

0:20:55 > 0:20:58- And why did this appeal to you? - The location.

0:20:58 > 0:21:02But, I must say, we were leaving the auction after the lot that we were

0:21:02 > 0:21:08going for went, and I heard "Maida Vale" and I just went back in.

0:21:08 > 0:21:12- I put my hand up.- We had forgotten about this property, actually.

0:21:12 > 0:21:16I mean, you just took it as, "It's in Maida Vale - it must be OK."

0:21:16 > 0:21:18Well, it was...

0:21:18 > 0:21:22We did chat to the chap who shows people round all the properties,

0:21:22 > 0:21:23and he gave us a...

0:21:23 > 0:21:26- He said, "It's not two-bedroom." - He did tell you that?

0:21:26 > 0:21:29Yeah, so we knew it was only one-bedroom.

0:21:29 > 0:21:32The hammer went down, you bid for it, you got it. You got the keys.

0:21:32 > 0:21:36- Were you eager to get in here to see what you'd bought?- Yes.- Very. Yeah.

0:21:36 > 0:21:41We walked in and my first reaction was, the wallpaper was lovely

0:21:41 > 0:21:43but it was too small.

0:21:43 > 0:21:46"Too small"? With those two words,

0:21:46 > 0:21:49Lorena has hit the nail squarely on the head with this flat.

0:21:49 > 0:21:51But I think we're on the same page

0:21:51 > 0:21:54when it comes to remedying the situation.

0:21:54 > 0:21:56Well, I happen to know that, in an area like this,

0:21:56 > 0:21:59it's all sold or rented on square footage.

0:21:59 > 0:22:01It doesn't matter whether it's one bedroom or two bedrooms,

0:22:01 > 0:22:04and you certainly couldn't call that a second bedroom,

0:22:04 > 0:22:07so please tell me, now, that you are thinking about knocking through

0:22:07 > 0:22:10- and opening the space up. - Yes.- Hurray!- Yay!- Good.

0:22:10 > 0:22:12Right, we've got that sorted,

0:22:12 > 0:22:14so you are going to have an L-shaped space in here.

0:22:14 > 0:22:17- Yeah, absolutely. - Yes, open-plan kitchen into the...

0:22:17 > 0:22:20Fabulous, because can you imagine walking in and having, you know,

0:22:20 > 0:22:23two lovely windows? Cos it's a little bit dark and dingy in here.

0:22:23 > 0:22:26To have that extra window is going to let so much more light flood in.

0:22:26 > 0:22:27Yes. It will.

0:22:27 > 0:22:30So, how is this brother-sister machine going to work?

0:22:30 > 0:22:32Who's going to be playing what role?

0:22:32 > 0:22:37- I do women's stuff like tiling, flooring...- Do you?

0:22:37 > 0:22:39Yeah. Yeah.

0:22:39 > 0:22:42I was taught by the best, my brother.

0:22:42 > 0:22:46Erm, so, I can do a few bits. The...

0:22:46 > 0:22:50The decorating, obviously, and...

0:22:50 > 0:22:53And keeping him at... Make sure he does what he's got to do.

0:22:53 > 0:22:56- Make sure I'm in work on time every morning.- Oh, yeah.

0:22:56 > 0:22:57And what will you be doing?

0:22:57 > 0:23:00If you're doing the tiling and the flooring and the decorating,

0:23:00 > 0:23:02that doesn't leave an awful lot for you to do, there.

0:23:02 > 0:23:05- And I'll be doing that, as well, I suspect.- Probably.

0:23:05 > 0:23:06When she says she'll be doing it,

0:23:06 > 0:23:08she'll be passing me a paintbrush, I suspect.

0:23:08 > 0:23:13So, who's in charge and who's going to set the schedule?

0:23:13 > 0:23:16- I would say I'm in charge. - I don't think so.

0:23:16 > 0:23:20- I will be project-managing. - I thought I was.- No.- OK!

0:23:20 > 0:23:23You can see we're going to get on really well.

0:23:23 > 0:23:26Well, they'd better agree on who's in charge soon, because David

0:23:26 > 0:23:30is leaving his career in IT to go into developing full-time.

0:23:30 > 0:23:34Thankfully, they have agreed on a budget of £15,000,

0:23:34 > 0:23:38but could sibling disharmony disrupt this project?

0:23:38 > 0:23:43Apart from joking around, we do get on very well, which is great

0:23:43 > 0:23:48and, yeah, we're going to carry on doing this as long as we can.

0:23:48 > 0:23:49- I think we will.- Yes.

0:23:49 > 0:23:54- So, what are you most looking forward to with this?- Finishing it!

0:23:54 > 0:23:58- My next question, how long is it going to take you both?- Two months.

0:23:58 > 0:24:00- Three months.- Two.

0:24:00 > 0:24:02We're hoping!

0:24:02 > 0:24:06- Erring on the side of caution, I say...- Three months tops?

0:24:06 > 0:24:09- Yes, three months tops.- Shall we go with that? £15,000.- Yes.

0:24:09 > 0:24:12Is there any chance you might not get permission

0:24:12 > 0:24:14to take that wall down? What if you don't?

0:24:14 > 0:24:17Yes, always a possibility. You never know.

0:24:17 > 0:24:20Until you've gone through it, there's no way of saying whether...

0:24:20 > 0:24:23There is no guarantee but...

0:24:23 > 0:24:25I think that is the only way to add value to this property.

0:24:25 > 0:24:27If you can't take that wall down,

0:24:27 > 0:24:29you could be in a little bit of danger,

0:24:29 > 0:24:30so let's keep our fingers crossed.

0:24:30 > 0:24:34- Yes.- And hope you get the permissions required.- Yup.

0:24:34 > 0:24:36- Good luck.- Thank you so much. - I look forward to seeing it.

0:24:36 > 0:24:38- Well done.- Lovely to meet you today.

0:24:38 > 0:24:40- Thank you.- Well done. - Thanks.- Thank you.- Thank you.

0:24:40 > 0:24:42Well, location is important,

0:24:42 > 0:24:46but I would still never advocate buying blind.

0:24:46 > 0:24:48Tut-tut, Lorena and David.

0:24:48 > 0:24:50Still, I do like their ideas for turning this flat around,

0:24:50 > 0:24:53and I just hope the freeholder's permission,

0:24:53 > 0:24:56or any sibling squabbles, don't cause problems for them.

0:24:56 > 0:24:57Will they quickstep to success?

0:24:57 > 0:24:59You can join me later in the programme

0:24:59 > 0:25:03and find out how the brother-and-sister team get on.

0:25:04 > 0:25:07Still to come, an overseas investor buys into Warrington.

0:25:07 > 0:25:10Have you done a little bit of research in the area?

0:25:10 > 0:25:12It's the first time I've ever been in Warrington

0:25:12 > 0:25:14so I don't know this area well at all.

0:25:16 > 0:25:21And we find out if David and Lorena are still on speaking terms.

0:25:21 > 0:25:22I'll tell you the truth...

0:25:29 > 0:25:32Back, now, to the Chaddesden district of Derby,

0:25:32 > 0:25:35where I looked around this three-bed mid-terrace,

0:25:35 > 0:25:37which was in need of a bit of sprucing up.

0:25:40 > 0:25:44Like most former council properties, it's a solid house,

0:25:44 > 0:25:48with good-proportioned rooms, including a kitchen extension.

0:25:52 > 0:25:56And no great surprises upstairs, with three bedrooms and a bathroom.

0:26:06 > 0:26:09Well, hopefully, lots of things in here would change,

0:26:09 > 0:26:11under the ownership of Darren,

0:26:11 > 0:26:14a builder and part-time property developer.

0:26:14 > 0:26:19He paid £66,500 for this house, and was in the fortunate position

0:26:19 > 0:26:23of already having a tenant lined up, even before he went to the auction.

0:26:23 > 0:26:26So, the fact you've already got somebody lined up

0:26:26 > 0:26:28to come in here, do they get some input into what you're going to do?

0:26:28 > 0:26:32Yeah, definitely, no, the thing that I've learnt through doing them

0:26:32 > 0:26:34is I try and get the tenant involved from day dot.

0:26:34 > 0:26:38She will come in and she's going to paint and things like that.

0:26:38 > 0:26:39- Oh, right?- A choice of carpets...

0:26:39 > 0:26:42If they've done a bit to it, it feels their...their own place.

0:26:42 > 0:26:44What a great idea. It...

0:26:44 > 0:26:46Does that add to your budget at all or does it make any difference?

0:26:46 > 0:26:49Slightly, slightly, but it's just something I think...

0:26:49 > 0:26:52Just, having the respect for the property, it pays off long-term.

0:26:52 > 0:26:56- What kind of budget is there?- About 3,500-4,000.- OK. And timescale?

0:26:56 > 0:27:00- The electrician's coming tonight. - Oh, is he? Oh, wow. What's he doing?

0:27:00 > 0:27:02Is he just checking it out?

0:27:02 > 0:27:05He's going to fit the smokes, check the electrics, so we have smokes

0:27:05 > 0:27:08and heat detectors where we need them, and a general check-over.

0:27:08 > 0:27:10- Right.- But, yeah, the...

0:27:10 > 0:27:13The tenant's going to start painting next week.

0:27:13 > 0:27:15So, Darren was already off

0:27:15 > 0:27:18and running on his two-to-three-week timescale.

0:27:18 > 0:27:21In fact, his tenant moved in so quickly, it's been five months

0:27:21 > 0:27:25until we could arrange a mutually convenient time to see the progress.

0:27:30 > 0:27:32There's a neutral colour scheme

0:27:32 > 0:27:34and the old gas fire and hearth have long gone.

0:27:39 > 0:27:41MUSIC: Hey Boy by Take That

0:27:41 > 0:27:44# Oh, it's only going to drive you crazy

0:27:44 > 0:27:48# Don't wait for someone to change your life... #

0:27:48 > 0:27:51Darren's not waiting for anyone to change his life.

0:27:51 > 0:27:54He's hoping his buy-to-let properties will take

0:27:54 > 0:27:56care of him in his retirement.

0:27:56 > 0:28:00# Don't wait for someone Go and change your life

0:28:00 > 0:28:02# Hey, boy, what ya got?

0:28:02 > 0:28:05# Don't leave me on the floor... #

0:28:05 > 0:28:08Speaking of the floor, all floor coverings have been refreshed

0:28:08 > 0:28:10with new carpet or laminate.

0:28:18 > 0:28:21Darren says his new tenant has settled in

0:28:21 > 0:28:22and is very much at home here.

0:28:29 > 0:28:32# Uh-oh, don't want no trouble in the house... #

0:28:48 > 0:28:51Darren decided not to renew the bathroom suite.

0:28:54 > 0:28:56# Don't want no trouble in the house. #

0:29:00 > 0:29:03But his garden tools got quite a workout in the back garden.

0:29:06 > 0:29:08The garden itself, in the rear, yes, we...

0:29:08 > 0:29:10It was a bit of a jungle at the beginning,

0:29:10 > 0:29:13so we spent a day or so hacking it all back to...

0:29:13 > 0:29:15Yeah, it's a garden now.

0:29:15 > 0:29:18One of the problems we had was the boiler itself.

0:29:18 > 0:29:20The Government did have in place a scheme where

0:29:20 > 0:29:24they change boilers, but that seemed to have changed since my last house

0:29:24 > 0:29:27I did, so a bit of a problem, but we just fitted a boiler ourselves.

0:29:27 > 0:29:30Was that the only thing that didn't go as planned?

0:29:30 > 0:29:31The one thing that we did change our mind on was

0:29:31 > 0:29:34the windows at the front of the property.

0:29:34 > 0:29:37They are timbers. The rear is plastic.

0:29:37 > 0:29:40So, at some later date, they'll be changed.

0:29:40 > 0:29:43Apart from getting the new tenant in to help paint,

0:29:43 > 0:29:47were there any other tricks in meeting the two-week schedule?

0:29:47 > 0:29:50With having my own building firm, we had a couple of rainy days,

0:29:50 > 0:29:53so we dropped the guys on here to give it a kick-start and,

0:29:53 > 0:29:54yeah, it helped out no end.

0:29:54 > 0:29:58And how's the £3,500-£4,000 budget fared?

0:29:58 > 0:30:01The budget came under the original figure.

0:30:01 > 0:30:03We did it for about £1,500.

0:30:03 > 0:30:06I think it was a bit lower than the original budget because

0:30:06 > 0:30:10the windows wasn't done, but, yeah, well happy with that one.

0:30:12 > 0:30:15We called on two local property experts to give us

0:30:15 > 0:30:17their thoughts and valuations.

0:30:17 > 0:30:20Their local knowledge will be especially useful.

0:30:21 > 0:30:23This is my second time in the property.

0:30:23 > 0:30:26I came here originally when we took the instruction,

0:30:26 > 0:30:28before it was offered for sale at the auction.

0:30:28 > 0:30:30My first impressions are that it's now bright and clean,

0:30:30 > 0:30:32and fresh and ready for immediate occupation.

0:30:32 > 0:30:34The main selling points of the property, I would say,

0:30:34 > 0:30:36would be the nice-sized garden,

0:30:36 > 0:30:39there's off-road parking, and it's not too far from town.

0:30:39 > 0:30:41I think the standard of finish is OK. It's kind of what

0:30:41 > 0:30:45you would expect for a property of this type in this location.

0:30:45 > 0:30:47It's not fantastic, but it's OK.

0:30:47 > 0:30:48Darren's already let the property,

0:30:48 > 0:30:51but is renting a sensible long-term option here?

0:30:51 > 0:30:56The rental market is very strong and three bedrooms is always a bonus.

0:30:56 > 0:30:59Most of the properties, or a lot of the properties

0:30:59 > 0:31:01that come to the rental market, are often two-beds.

0:31:01 > 0:31:04So, yes, three-bedroom property, great for a family.

0:31:04 > 0:31:07Darren probably won't want to be selling any time soon but,

0:31:07 > 0:31:08if he did, what kind of profit,

0:31:08 > 0:31:11before taxes and expenses, could the hey expect?

0:31:11 > 0:31:14Remember, he spent £66,500 at auction and a further

0:31:14 > 0:31:20£1,500 on refurbishment, taking his total investment to £68,000.

0:31:21 > 0:31:24If this property were offered for sale on today's market,

0:31:24 > 0:31:26I would anticipate a sale being achieved

0:31:26 > 0:31:29somewhere in the region of £80,000-£85,000.

0:31:29 > 0:31:31If we were to put this property up for sale,

0:31:31 > 0:31:34I would ask just shy of £80,000,

0:31:34 > 0:31:39and I'd expect offers between £70,000-£75,000.

0:31:41 > 0:31:43I purchased the properties purely just for my pension.

0:31:43 > 0:31:46Values are going to go up and down, no doubt,

0:31:46 > 0:31:49in the next 10-20 years, but I'm not in it to sell them on.

0:31:49 > 0:31:52- It's my pension pot.- I thought so. Now, what about rental?

0:31:52 > 0:31:56I would say that, if this property were offered to the rental market,

0:31:56 > 0:31:58it would achieve somewhere in the region

0:31:58 > 0:31:59of £500-£525 per calendar month.

0:31:59 > 0:32:02The rental value for this, I would imagine, would be

0:32:02 > 0:32:04in the region of £500 per calendar month.

0:32:04 > 0:32:08It's already rented out at £595 per calendar month.

0:32:08 > 0:32:11So Darren's punching above his weight with the rental income,

0:32:11 > 0:32:14which equates to a yield of 10.5%.

0:32:14 > 0:32:18So, is he keen to keep adding to his pension in this way?

0:32:18 > 0:32:20I would buy at auction again because, yeah,

0:32:20 > 0:32:23there's some good properties at some good prices.

0:32:27 > 0:32:32This green and pleasant landscape is Sankey Valley Park in Warrington.

0:32:32 > 0:32:34Stretching for 1.5 miles,

0:32:34 > 0:32:37the park runs alongside a section of the Sankey Valley Canal.

0:32:41 > 0:32:44It was the first-ever canal to be cut into England

0:32:44 > 0:32:47and was opened in 1557 to transport coal from mines

0:32:47 > 0:32:51around St Helens to Liverpool and Cheshire.

0:32:53 > 0:32:56Just under a mile away from Sankey Valley Park,

0:32:56 > 0:32:58and not too far from Warrington town centre,

0:32:58 > 0:33:00is the auction lot I'm here to see.

0:33:00 > 0:33:03It's a ground-floor, one-bedroom apartment,

0:33:03 > 0:33:06with a guide price of £30,000 plus.

0:33:06 > 0:33:09I'm going to take a look inside.

0:33:14 > 0:33:16So, I'm in through the side door,

0:33:16 > 0:33:19which would have been the back door when this was one house,

0:33:19 > 0:33:21but now it's split into two apartments -

0:33:21 > 0:33:24one on top and one on the bottom. So, what have we got?

0:33:24 > 0:33:27A decent-sized bathroom in good condition,

0:33:27 > 0:33:30with a shower over the bath, as well.

0:33:30 > 0:33:32You can keep that, no problem at all.

0:33:32 > 0:33:34You could get that painted in a different colour,

0:33:34 > 0:33:37just to suit you, but quite easily keep that.

0:33:37 > 0:33:40Into the kitchen - long galley kitchen.

0:33:40 > 0:33:43Again, this seems to have been looked after.

0:33:43 > 0:33:46Great condition, decent size, double-glazed windows...

0:33:46 > 0:33:49You might want to personalise it and maybe change the flooring,

0:33:49 > 0:33:51but you'd get away with keeping it,

0:33:51 > 0:33:54and a combi boiler so you've got central heating.

0:33:54 > 0:33:57Into the bedroom, which, again, is in good condition,

0:33:57 > 0:33:58decent size, again.

0:33:58 > 0:34:01I'm repeating myself but it's the truth.

0:34:01 > 0:34:04Get a double bed, single bed, double glazing... Lots of light.

0:34:04 > 0:34:06It's a good start.

0:34:06 > 0:34:09# You got me stuck on repeat... #

0:34:09 > 0:34:13Well, good things are worth repeating and it's the same formula

0:34:13 > 0:34:17in the lounge - lots of light and plenty of space.

0:34:18 > 0:34:20With so little needing to be done in here,

0:34:20 > 0:34:24this is obviously going to make a great rental opportunity.

0:34:24 > 0:34:27One-bed flats in this area are currently renting at around

0:34:27 > 0:34:30£350 per calendar month,

0:34:30 > 0:34:33which, if you get this place for anything near the guide price

0:34:33 > 0:34:37of £30,000, means a whopping yield of 14%.

0:34:37 > 0:34:41I'd better repeat that - 14%.

0:34:43 > 0:34:46So, I've just come out to the back garden and, as you can see,

0:34:46 > 0:34:50it's split into two, just as the house is now

0:34:50 > 0:34:53- an apartment on the top and an apartment on the bottom.

0:34:53 > 0:34:55What I would say, when buying properties like these,

0:34:55 > 0:34:59make sure there's a proper lease in place which makes both owners

0:34:59 > 0:35:03equally liable for any repairs or any damages at all.

0:35:03 > 0:35:06Maybe the roof needs doing or the guttering needs to be sorted out.

0:35:06 > 0:35:09Make sure there's no grey areas.

0:35:09 > 0:35:11Saying that...

0:35:11 > 0:35:14easily-maintained back garden, a bit of outside space...

0:35:14 > 0:35:15I don't think it's too bad at all.

0:35:18 > 0:35:22So, this flat looks increasingly like a great investment opportunity,

0:35:22 > 0:35:24but what's the area like?

0:35:25 > 0:35:29Who better to ask than an agent from the auction house who sold it?

0:35:29 > 0:35:33The area is very close to Warrington town centre.

0:35:33 > 0:35:36You're within a five-minute drive and it's really accessible

0:35:36 > 0:35:41to the motorway network system - the M62, the M56, the M6 -

0:35:41 > 0:35:44so in terms of getting access to other cities,

0:35:44 > 0:35:47it's a really good location. And it's a good residential area

0:35:47 > 0:35:49with lots of local amenities as well.

0:35:49 > 0:35:53The local market's been really good in the last 18 months or so.

0:35:53 > 0:35:57And we've seen an upturn in activity in all price ranges

0:35:57 > 0:35:59and also with the same for lettings.

0:35:59 > 0:36:02There's been a strong demand for rentals

0:36:02 > 0:36:05and we're seeing that properties coming on to the market,

0:36:05 > 0:36:07whether for sale or for let, are going really well.

0:36:09 > 0:36:12And, if this flat was given a bit of a polish,

0:36:12 > 0:36:15what could it achieve on the resale market?

0:36:15 > 0:36:19I think they could probably achieve somewhere between £45,000-£50,000.

0:36:19 > 0:36:21This is a popular rental area

0:36:21 > 0:36:25and the agent was confident this flat would exceed the going rate

0:36:25 > 0:36:30I mentioned earlier, pitching it at £395 per calendar month.

0:36:32 > 0:36:33This is a rare one for Hammer,

0:36:33 > 0:36:36cos there's not much that needs doing at all.

0:36:36 > 0:36:39And it's difficult to see how you can add much value.

0:36:39 > 0:36:42This one is definitely for the rental market, for me.

0:36:42 > 0:36:46Let's see who fancied it when it went under the hammer.

0:36:46 > 0:36:48Over in Warrington, the self-contained,

0:36:48 > 0:36:51ground-floor one-bedroom flat.

0:36:51 > 0:36:56At £30,000 for this. Over at Warrington, 30,000. 25.

0:36:57 > 0:37:0125, I've got. At 25,000. Six now.

0:37:01 > 0:37:05At 26. 27. 28. £28,000...

0:37:05 > 0:37:09Dropping the starting price by £5,000 certainly sparked

0:37:09 > 0:37:12the interest of two bidders keen to buy this property.

0:37:12 > 0:37:15We rejoin the auction with the price at £35,000.

0:37:15 > 0:37:1835. 500.

0:37:18 > 0:37:2036.

0:37:20 > 0:37:23500. 37.

0:37:23 > 0:37:24500.

0:37:24 > 0:37:2937. Still on my left at 37, the standing bidder.

0:37:29 > 0:37:35Are we all done, then? The hammer's up at 37,500. On my right. 38.

0:37:35 > 0:37:3738,500... No. 38, standing.

0:37:37 > 0:37:4038,000. Are we all done? The hammer's up.

0:37:40 > 0:37:43Final call. At £38,000...

0:37:46 > 0:37:47Thank you very much.

0:37:50 > 0:37:54Making that final bid was Adrian, who's been on the show before,

0:37:54 > 0:37:59but this time he paid £38,000 on behalf of his client Mark.

0:37:59 > 0:38:02Mark was looking for a better investment for his money

0:38:02 > 0:38:05and enlisted Adrian's services to find and purchase

0:38:05 > 0:38:08properties in the local area.

0:38:08 > 0:38:11Why can't Mark do this himself? Well, since retiring from his job

0:38:11 > 0:38:15as a geologist in the oil and gas industry, he lives in South Africa.

0:38:16 > 0:38:20# Get your rocks off, get your rocks off, honey... #

0:38:20 > 0:38:22Mark, nice to meet you. Congratulations.

0:38:22 > 0:38:25- Good to meet you, Dion. - Adrian, good to see you.

0:38:25 > 0:38:27- Yes.- Welcome back to the show, again.- Thank you, Dion.

0:38:27 > 0:38:30Mark, tell us first and foremost, why this particular property?

0:38:30 > 0:38:32Well, this is the third property that I've bought

0:38:32 > 0:38:35through Adrian's help in the last couple of years.

0:38:35 > 0:38:38It seemed like a very good deal, especially at the price,

0:38:38 > 0:38:40so here we are. I'm very happy with it.

0:38:40 > 0:38:43Good man, have you done a little bit of research in the area?

0:38:43 > 0:38:45It's the first time I've ever actually been in Warrington,

0:38:45 > 0:38:48although I grew up in Cheadle just down the road,

0:38:48 > 0:38:49so I don't know this area well at all,

0:38:49 > 0:38:52but I've bought a couple of properties in Liverpool and Bootle.

0:38:52 > 0:38:55So, I'm getting some familiarity with the area, certainly.

0:39:00 > 0:39:02Being familiar with the area is tricky

0:39:02 > 0:39:05when you live in South Africa and so Mark knew he'd have to find

0:39:05 > 0:39:09someone in the UK to help him locate the right investment

0:39:09 > 0:39:12properties, which is where Adrian came in, around three years ago.

0:39:14 > 0:39:17# I'm just a stranger

0:39:17 > 0:39:20# A stranger in this town... #

0:39:20 > 0:39:23You know, sitting over there most of the year,

0:39:23 > 0:39:27you don't know the area, you don't know the market, you don't...

0:39:27 > 0:39:30I wouldn't be able to get a hold of a builder, or a plumber,

0:39:30 > 0:39:31or a rental agent, indeed.

0:39:31 > 0:39:34So, I basically tracked him down and then we spoke some time after that.

0:39:34 > 0:39:37In fact, I was actually in London at that time. I've been doing

0:39:37 > 0:39:40a bit of work in London, and we kind of went from there.

0:39:42 > 0:39:46Over 6,000 miles separates Warrington from Mark's home

0:39:46 > 0:39:49in Cape Town, but, thanks to good research,

0:39:49 > 0:39:52he finally managed to track down his man.

0:39:52 > 0:39:56# Whoever said a good man's hard to find... #

0:39:56 > 0:40:00This is a joint investment between Mark and his mum,

0:40:00 > 0:40:04who lives in Buckinghamshire, and they are more than happy to let

0:40:04 > 0:40:07someone else do the research and the auction buying for them.

0:40:08 > 0:40:11So, tell us about the auction situation, were you on the phone?

0:40:11 > 0:40:13Tell us how that worked.

0:40:13 > 0:40:16Well, I was sitting at home in Cape Town, Adrian was there

0:40:16 > 0:40:19bidding on my behalf and he sent me an SMS after the fact and said,

0:40:19 > 0:40:21you know, "Bought at 38,000 - bargain."

0:40:21 > 0:40:25Or words to that effect, so good result all round. I was delighted.

0:40:25 > 0:40:28And what was your instruction on the day, Adrian?

0:40:28 > 0:40:33- We had an agreed maximum mark of 44,000.- 44 something.- 44,500.

0:40:33 > 0:40:36So, it came well under that, so, delighted.

0:40:36 > 0:40:39- Right on the mark and a good buy. - Very good.

0:40:39 > 0:40:42- Good work.- Very good indeed. - Bit of money in the budget then?

0:40:42 > 0:40:46Absolutely, and in fact, I think Adrian's given me

0:40:46 > 0:40:49the guideline on what he suggests we do with this.

0:40:49 > 0:40:52I think there may be one or two small, additional things

0:40:52 > 0:40:55that we contemplate doing which will add a very small amount

0:40:55 > 0:40:57to the budget, but the budget's what?

0:40:57 > 0:41:00- 2,500, more or less? - Yes, just under 2,500.

0:41:00 > 0:41:01And what will you do with the budget?

0:41:01 > 0:41:03Where is it going to go, Adrian?

0:41:03 > 0:41:06It'll go on redecoration completely, we'll update the kitchen

0:41:06 > 0:41:09slightly. We won't change it cos it's a good, modern kitchen

0:41:09 > 0:41:11and we've got a good modern bathroom in place already,

0:41:11 > 0:41:13so we'll just make small changes to those.

0:41:13 > 0:41:16New cooker, a new fridge freezer, new flooring throughout,

0:41:16 > 0:41:18we'll modernise it.

0:41:18 > 0:41:20The paper's a bit dated, the curtains

0:41:20 > 0:41:23and the net curtains are dated, so we'll change all that.

0:41:23 > 0:41:26But basically this property already has the main ingredient,

0:41:26 > 0:41:28shall I say. It has the double glazing,

0:41:28 > 0:41:30it has a modern central heating system fitted,

0:41:30 > 0:41:33it's well insulated, so it's a small budget. That's all it needs, really.

0:41:33 > 0:41:362,500 grand to spend, what about your turnaround time?

0:41:36 > 0:41:39Two to three weeks we'll have this one done and back on the market.

0:41:39 > 0:41:41- So this is a very straightforward one.- No hanging about, Mark,

0:41:41 > 0:41:44- is there?- No, not at all. It's a relatively low budget

0:41:44 > 0:41:47and it's a fairly fast turnaround time, which I think is important.

0:41:47 > 0:41:50You don't want something to be sitting for two or three months

0:41:50 > 0:41:53before it's actually ready for the rental market,

0:41:53 > 0:41:55so, from my point of view, this is great.

0:41:55 > 0:41:58- Is it the same guys you use all the time, Adrian?- Yes, regular team.

0:41:58 > 0:42:00The guys we've used for years, we can trust and we know

0:42:00 > 0:42:03they're going to turn up on time and they'll be in here tomorrow

0:42:03 > 0:42:07starting to strip out the flooring and the wallpaper and on we go.

0:42:07 > 0:42:10So, there being a flat above this one,

0:42:10 > 0:42:12is that any cause for concern at all?

0:42:12 > 0:42:14No, because the lease has been drawn up properly.

0:42:14 > 0:42:18It's a long lease, 999 years from 2007, so it's a really good lease.

0:42:18 > 0:42:21It's very clear that we will share the cost.

0:42:21 > 0:42:24The owner of this one will share the costs with upstairs 50-50.

0:42:24 > 0:42:27So, even if it's the roof or guttering, in the downstairs flat,

0:42:27 > 0:42:29so we know where we are,

0:42:29 > 0:42:32and we know what the lease is stating, so it's very clear.

0:42:32 > 0:42:35Is it only the rental market that you're looking to venture into?

0:42:35 > 0:42:36It is, it is. Yeah.

0:42:36 > 0:42:39I think of myself as an investor rather than a speculator

0:42:39 > 0:42:41in that respect. I'm not really interested...

0:42:41 > 0:42:44I mean, eventually, there'll be some capital growth, of course.

0:42:44 > 0:42:47- Yeah.- But I'm not interested in a quick turnaround, no.

0:42:47 > 0:42:50Not in terms of putting it back on the market for selling, no.

0:42:50 > 0:42:51When are you travelling back home?

0:42:51 > 0:42:55Well, I'll be in Europe for the European summer.

0:42:55 > 0:42:56Which is a weekend.

0:42:56 > 0:42:57LAUGHTER

0:42:57 > 0:43:01- Friday, Saturday.- It's probably three weeks in July, yes.

0:43:01 > 0:43:04My mum lives in England near Buckingham,

0:43:04 > 0:43:07so I'm spending some time with her at the moment.

0:43:07 > 0:43:10I'll be going over to France, I've got a little holiday place there.

0:43:10 > 0:43:12So I normally spend three or four months there in the summer

0:43:12 > 0:43:15and then I'll be back in England again for a month towards the end

0:43:15 > 0:43:19of the year, and then back home to Cape Town probably in November.

0:43:19 > 0:43:22So, will you be flitting back and forth seeing how this is getting on?

0:43:22 > 0:43:25Yes, I'll be back here after the refurbishment

0:43:25 > 0:43:27to see how it's looking and,

0:43:27 > 0:43:29hopefully, that'll be in a short time.

0:43:29 > 0:43:32- I wish you all the best.- Thank you very much.- Good luck to you.

0:43:32 > 0:43:35- Thank you.- Safe travels.- Thank you. - Adrian, good to see you again.

0:43:35 > 0:43:38- Yes, you too.- Well done, sir, well done.- Thank you very much.

0:43:38 > 0:43:42Mark has every faith in Adrian and you can see why.

0:43:42 > 0:43:45He's done it again, he's got a property that needs

0:43:45 > 0:43:48very little doing to it, got a small budget of £2,500,

0:43:48 > 0:43:51but will he get it done within that two to three-week window?

0:43:51 > 0:43:54You can find out later on in the programme.

0:43:57 > 0:43:59Well, we've seen how it played out for one property,

0:43:59 > 0:44:01but there's still lots more to see.

0:44:01 > 0:44:03Yeah, it's been a while since we visited.

0:44:03 > 0:44:05Think there will be any changes? Let's have a look.

0:44:05 > 0:44:07Well, I'd say they'd be a good chance.

0:44:07 > 0:44:09You never know though, here we go.

0:44:11 > 0:44:15Earlier, I was in Maida Vale in London, famous for many things,

0:44:15 > 0:44:19including being the birthplace of Robert Smith, front man of The Cure.

0:44:19 > 0:44:23I came to look around a brick-built Art Deco style apartment,

0:44:23 > 0:44:27which claimed to be a three-roomed ground-floor property.

0:44:27 > 0:44:30It sold at auction for 425,000.

0:44:33 > 0:44:36It's small, it's quite angular and awkward.

0:44:36 > 0:44:38You've got a wall slanted there.

0:44:38 > 0:44:43So, this is what it means by three rooms. Rather small bedroom there.

0:44:43 > 0:44:46A ridiculously small...

0:44:46 > 0:44:49I wouldn't even call it a box room because it's tiny!

0:44:49 > 0:44:52It's a coat cupboard, it's a very small room.

0:44:52 > 0:44:56I would never call that a bedroom, so that's a rather weird space.

0:44:56 > 0:44:57The main living space was dingy

0:44:57 > 0:45:00and had a very impractical kitchen arrangement.

0:45:00 > 0:45:03A full scheme of renovation was called for

0:45:03 > 0:45:06and I believe getting rid of the tiny second bedroom

0:45:06 > 0:45:09and reutilising the space was the best plan.

0:45:09 > 0:45:11MUSIC: Close To Me by The Cure

0:45:11 > 0:45:16And I just think a one-bedroom flat rather than a very small compromised

0:45:16 > 0:45:19two-bedroom flat would be so much better.

0:45:21 > 0:45:24Taking on the product project were joint owners,

0:45:24 > 0:45:26brother and sister duo, David and Lorena.

0:45:26 > 0:45:29Now, Lorena was hoping to fit the work around her commitments

0:45:29 > 0:45:32as a professional dancer, while David was planning on leaving

0:45:32 > 0:45:36his IT career behind and going into property development full-time.

0:45:36 > 0:45:39But they'd have to get the ground rules laid out first.

0:45:40 > 0:45:43Do you two get on well? Are you going to have a bit of banter

0:45:43 > 0:45:45- and a laugh while doing this?- No, we hate each other.- Are you

0:45:45 > 0:45:48the bossy older brother or are you the bossy big sister?

0:45:48 > 0:45:50- She's the bossy big sister. - He's the bossy one.

0:45:50 > 0:45:53- Who's in charge and who's going to set the schedule?- I thought I was.

0:45:53 > 0:45:58That was easy. You can see we're going to get on really well.

0:45:58 > 0:46:00The schedule was set for two to three months

0:46:00 > 0:46:03and they had a budget of 15,000.

0:46:03 > 0:46:06I do hope sibling rivalry wasn't an issue in the end.

0:46:08 > 0:46:12We're back seven months later to find out how they got on, or didn't.

0:46:12 > 0:46:14MUSIC: What Do You Mean? by Justin Bieber

0:46:14 > 0:46:16# What do you mean?

0:46:16 > 0:46:18# Oh-oh-oh

0:46:18 > 0:46:22# When you nod your head yes but you wanna say no

0:46:22 > 0:46:23# What do you mean... #

0:46:23 > 0:46:26The high-quality fittings look very appropriate

0:46:26 > 0:46:28for this affluent area

0:46:28 > 0:46:31and should help with the plans to sell on at a decent profit.

0:46:32 > 0:46:34# Oh, what do you mean?

0:46:36 > 0:46:39# I said, you're running out of time What do you mean? #

0:46:40 > 0:46:44The living space was closed in with very little natural light.

0:46:44 > 0:46:48Now, by opening up the wall into the tiny second bedroom

0:46:48 > 0:46:50it's much brighter and airier.

0:46:52 > 0:46:55# What do you mean? #

0:46:55 > 0:46:58As well as opening up the lounge/kitchen space,

0:46:58 > 0:47:00David removed the false chimney breast and hearth

0:47:00 > 0:47:02to open the lounge further,

0:47:02 > 0:47:05but not before getting a structural survey.

0:47:08 > 0:47:11The full ceiling was next on the list, as it was the only way

0:47:11 > 0:47:15to achieve concealed lighting with an original concrete ceiling,

0:47:15 > 0:47:18which doubles up as the upstairs flat floor.

0:47:20 > 0:47:23Now, the only bedroom is clear, uncluttered,

0:47:23 > 0:47:26with new laminate flooring and is much more appealing.

0:47:29 > 0:47:34So, for the best part of seven months working in a confined area,

0:47:34 > 0:47:37how did brother and sister fair?

0:47:37 > 0:47:40# Gotta make up your mind What do you mean? #

0:47:40 > 0:47:42I'll tell you the truth.

0:47:42 > 0:47:45We've actually got on really well.

0:47:45 > 0:47:48I think it was a good thing in the end.

0:47:48 > 0:47:53But you did outrun the two to three month timescale quite a bit!

0:47:53 > 0:47:56That was more Lorena's timescale.

0:47:56 > 0:48:00I was more three to four months, which we did go over,

0:48:00 > 0:48:02but that was mostly due to not being able to get trades in,

0:48:02 > 0:48:07so me having to do a lot of the jobs that I wouldn't normally do.

0:48:07 > 0:48:09So what was the reasoning behind taking out the bath

0:48:09 > 0:48:10and just having a shower?

0:48:10 > 0:48:13I think, basically,

0:48:13 > 0:48:16who would be buying this flat would be someone that's

0:48:16 > 0:48:18a get up and go person,

0:48:18 > 0:48:21so that's the reason why we did a shower in there.

0:48:21 > 0:48:23Does anyone use baths any more?

0:48:24 > 0:48:28Probably not at the cost per square foot of floor space in these parts.

0:48:28 > 0:48:30What were the main problems?

0:48:30 > 0:48:35Couldn't find people who wanted work in London, funnily enough.

0:48:35 > 0:48:38Mm, and were those that you could find punctual?

0:48:38 > 0:48:41Actually, I was the one that was always late.

0:48:41 > 0:48:43I bet that went down really well,

0:48:43 > 0:48:45especially as David had to travel further.

0:48:45 > 0:48:47Now what about the budget?

0:48:47 > 0:48:51We spent £15,200.

0:48:51 > 0:48:56Our budget was 15,000, so I would say, yeah, we kept to budget.

0:48:56 > 0:48:58What were the big expenses?

0:48:58 > 0:49:02I think it was about £800 for the structural survey and the licences

0:49:02 > 0:49:06from the managing agents were about £400, so quite a big chunk.

0:49:07 > 0:49:10When it comes to making alterations, leases can differ greatly,

0:49:10 > 0:49:14but, in most cases, consent is required and your landlord

0:49:14 > 0:49:19may insist you obtain a formal licence to make those alterations.

0:49:19 > 0:49:23You may charge a fee to cover any legal and valuation expenses.

0:49:23 > 0:49:26Dancing to the landlord's tune is one thing,

0:49:26 > 0:49:29but did Lorena manage to get a bit of dance practice in

0:49:29 > 0:49:31whilst she was working?

0:49:31 > 0:49:35Oh, yeah, all the time. My brother couldn't stand it.

0:49:35 > 0:49:37That was one thing that really wound him up, me dancing

0:49:37 > 0:49:40and singing in the flat while we were working.

0:49:40 > 0:49:42I told her off, yeah.

0:49:43 > 0:49:45She was chastised.

0:49:45 > 0:49:49And can you sum up the design and decor philosophy?

0:49:49 > 0:49:53Simple, modern, neutral.

0:49:53 > 0:49:56Well, David's not one to beat about the bush.

0:49:56 > 0:49:58So, anything learned by this process?

0:49:58 > 0:50:02I've learned to cut worktops, as I couldn't get a carpenter.

0:50:02 > 0:50:05I did tiling before, I've learnt how to box in.

0:50:06 > 0:50:08Erm...

0:50:10 > 0:50:13Looks like Lorena's got the giggles!

0:50:13 > 0:50:17Let's hope she's still smiling when she hears what two local

0:50:17 > 0:50:20estate agents think of all the hard work that's been done here.

0:50:20 > 0:50:24First up, the agent who saw it before any work was started.

0:50:24 > 0:50:26I think the property has been refurbished to

0:50:26 > 0:50:28a really high standard. It's all done very nicely

0:50:28 > 0:50:30and neutral colours, which is a great help.

0:50:30 > 0:50:33I like the layout of the flat. I think it works very well. It flows.

0:50:33 > 0:50:36I like the fact that you've got quite a lot of light

0:50:36 > 0:50:38coming in from both the windows.

0:50:39 > 0:50:42David and Lorena bought for 425,000 and spent,

0:50:42 > 0:50:48let's say, £15,000 on refurbishment, so a total spend of 440,000.

0:50:48 > 0:50:52Will they have added enough value to sell on, as intended?

0:50:53 > 0:50:54On the resale market,

0:50:54 > 0:50:58I believe this flat would be worth somewhere in the region of £500,000.

0:50:58 > 0:51:01If the apartment was to come to the market right now,

0:51:01 > 0:51:04I would advise it to come onto the market at £525,000.

0:51:04 > 0:51:08525,000 would be good for sale.

0:51:08 > 0:51:12- Good? That would be excellent.- Yeah.

0:51:12 > 0:51:15So it looks like this will be on the market soon.

0:51:15 > 0:51:18Is refurbishment something you'd consider doing together again?

0:51:18 > 0:51:21Absolutely, but I would say that I would make sure that

0:51:21 > 0:51:23I look at it before I buy it.

0:51:23 > 0:51:26Well, now you've got me wanting to do a jig.

0:51:26 > 0:51:29# I'm in the mood for dancing... #

0:51:35 > 0:51:38We're back in Cheshire now and the town of Warrington,

0:51:38 > 0:51:41where I earlier visited this ground-floor one-bed flat

0:51:41 > 0:51:44up for auction at a guide price of £30,000 plus.

0:51:46 > 0:51:49In a quiet neighbourhood close to motorway links,

0:51:49 > 0:51:52there wasn't much in here that needed improving.

0:51:52 > 0:51:55Great condition, decent size, double glazed windows.

0:51:55 > 0:51:57I don't think it's too bad at all.

0:51:59 > 0:52:01- AUCTIONEER:- Thank you very much.

0:52:01 > 0:52:06It was purchased at auction by property agent Adrian for 38,000.

0:52:06 > 0:52:09Adrian was buying on behalf of his South African-based client,

0:52:09 > 0:52:12Mark, who wanted to add this to his growing number

0:52:12 > 0:52:14of rental properties in the northwest.

0:52:16 > 0:52:20Well, I was sitting at home in Cape Town. Adrian was there bidding

0:52:20 > 0:52:23on my behalf and he sent me an SMS after the fact and said,

0:52:23 > 0:52:26"Bought it at 38,000 - bargain," or words to that effect,

0:52:26 > 0:52:29so a good result all round. I was delighted.

0:52:33 > 0:52:37Adrian's property team were set to begin work the very next day.

0:52:37 > 0:52:41And with a timescale of three weeks and a budget of £2,500,

0:52:41 > 0:52:44this project looked as straightforward as, well...

0:52:44 > 0:52:46# A-B-C

0:52:46 > 0:52:48# Easy as 1-2-3... #

0:52:48 > 0:52:51To see if everything's gone to plan, we've come back five weeks later

0:52:51 > 0:52:54to take a look around Mark's refurbished flat.

0:53:14 > 0:53:19Well, it's not just the sunny weather that's made a difference.

0:53:19 > 0:53:22All that was required in here was a freshen up, but Adrian and his team

0:53:22 > 0:53:25have done a brilliant job.

0:53:25 > 0:53:28Today is the first time Mark has seen the finished property

0:53:28 > 0:53:30and I'm keen to hear what he thinks.

0:53:30 > 0:53:33It didn't look too bad when we first bought the property

0:53:33 > 0:53:35but the guys have been in here for about three weeks

0:53:35 > 0:53:39and they've done a really nice job of painting and the flooring,

0:53:39 > 0:53:41and they've made a really nice job, overall.

0:53:43 > 0:53:45The flat is looking better,

0:53:45 > 0:53:48but what work was carried out to take it up a notch?

0:53:48 > 0:53:50Basically, we've redecorated throughout,

0:53:50 > 0:53:52walls, ceilings, woodwork.

0:53:52 > 0:53:56We've replaced the kitchen worktops, retiled the kitchen, the bathroom,

0:53:56 > 0:53:58new flooring down where required,

0:53:58 > 0:54:02a new shower screen, refreshed the bathroom, new window blinds,

0:54:02 > 0:54:04jet washed the outside, really spruced it up

0:54:04 > 0:54:07and bring it a nice and modern look for the tenants.

0:54:10 > 0:54:13The work has been completed within the three-week timeframe,

0:54:13 > 0:54:16but how has the budget held up?

0:54:16 > 0:54:19The budget we had was £2,500 and we have actually come in slightly

0:54:19 > 0:54:24under, just £50 under, at £2,450, so very pleased with the outcome.

0:54:26 > 0:54:28The refurbishment has run like clockwork.

0:54:29 > 0:54:33But there is one thing that casts a shadow over this project.

0:54:33 > 0:54:36The biggest problem with this property is the presence

0:54:36 > 0:54:40of this very large tree right outside the living room window,

0:54:40 > 0:54:43and, in fact, the tree's actually giving potential major problems

0:54:43 > 0:54:47with drainage and certainly these paving stones are raising up

0:54:47 > 0:54:50already, so we are going to remove this tree as soon as possible.

0:54:52 > 0:54:55There's been a bit of an issue trying to contact the freeholder.

0:54:55 > 0:54:57The neighbours upstairs have agreed

0:54:57 > 0:54:59that it's a good idea that it should go.

0:54:59 > 0:55:01# Going back to my roots

0:55:01 > 0:55:03# Yeah... #

0:55:03 > 0:55:06Tree roots are a property pain, but getting rid of one with

0:55:06 > 0:55:10a large root system can also cause problems, so best to get

0:55:10 > 0:55:13a qualified and insured tree surgeon to do the job for you.

0:55:13 > 0:55:15# Zippin' up my boots... #

0:55:15 > 0:55:18Getting someone else to do it seems to have worked for Mark

0:55:18 > 0:55:21when it comes to increasing his property portfolio.

0:55:22 > 0:55:25This has been a very good experience in terms of the ease

0:55:25 > 0:55:28of purchasing at the auction, and the fact that Adrian's team

0:55:28 > 0:55:32just walks in and does all the work is great from my perspective.

0:55:32 > 0:55:35I've actually bought two more properties subsequent

0:55:35 > 0:55:38to that auction, so, you know, erm...

0:55:38 > 0:55:39It's going very well.

0:55:39 > 0:55:40# A-B-C... #

0:55:40 > 0:55:45This project may have been as easy as A-B-C for Mark and Adrian,

0:55:45 > 0:55:48but have their sums been as good as their letters?

0:55:50 > 0:55:53We've asked two local estate agents to come around,

0:55:53 > 0:55:57assess the work, and get their calculators out.

0:55:57 > 0:56:00Well, it's an attractive one-bedroom converted flat.

0:56:00 > 0:56:03The standard of finish in the apartment is to a good standard,

0:56:03 > 0:56:05and particularly the kitchen and bathroom

0:56:05 > 0:56:06I think have been done well.

0:56:06 > 0:56:08It's the first time I've seen the property.

0:56:08 > 0:56:12It's a great apartment, nice area and very good finish.

0:56:12 > 0:56:15And certainly very appropriate for first-time buyers

0:56:15 > 0:56:17looking to move into the area.

0:56:18 > 0:56:22As Mark has bought this as a buy-to-let investment,

0:56:22 > 0:56:25let's get some rental valuations.

0:56:25 > 0:56:27I feel, in the rental market, this apartment would make

0:56:27 > 0:56:31in the region of £375-£400 per calendar month.

0:56:31 > 0:56:34In my opinion, this property will rent for a figure

0:56:34 > 0:56:36of £380 per calendar month.

0:56:37 > 0:56:43A monthly rental of £380 would earn Mark a yield of just over 11%,

0:56:43 > 0:56:46but what about the resale values?

0:56:46 > 0:56:51Could there be a quick profit on Mark's total investment of £40,450?

0:56:51 > 0:56:54If we were to put this property onto the market,

0:56:54 > 0:56:58I would expect to achieve a figure in the region of £60,000.

0:56:58 > 0:57:01In the sales market, this property should achieve

0:57:01 > 0:57:02in the region of £50,000.

0:57:02 > 0:57:05Well, I think those valuations are very good.

0:57:05 > 0:57:08Obviously, I like the higher number more than the lower number,

0:57:08 > 0:57:10but I think that even at £50,000,

0:57:10 > 0:57:14that represents a not-unreasonable capital growth.

0:57:14 > 0:57:17I think this property altogether will cost about 44,000,

0:57:17 > 0:57:21including all of the fees and the legal costs,

0:57:21 > 0:57:25so if we're looking at some equity already, I think that's very good.

0:57:25 > 0:57:27But 60,000 would be excellent.

0:57:27 > 0:57:30So, things look promising for this property,

0:57:30 > 0:57:33but what does Mark have planned for the future?

0:57:33 > 0:57:35I've now got six properties in total,

0:57:35 > 0:57:39so it might be time to take a bit of a back step, or a step backwards,

0:57:39 > 0:57:41and just see how they go over the next few months,

0:57:41 > 0:57:44but it's always tempting to go back to the auction room,

0:57:44 > 0:57:47especially when there's some good bargains coming up.

0:57:51 > 0:57:54Well, as you can see, this property developing lark

0:57:54 > 0:57:55is not necessarily easy.

0:57:55 > 0:57:58We've seen the ups, oh, but we've seen the downs.

0:57:58 > 0:58:01And there's plenty more buyers getting ready to get stuck in.

0:58:01 > 0:58:04Come and meet some more next time on Homes Under The Hammer.

0:58:04 > 0:58:05- Goodbye.- Goodbye.- Goodbye.