Episode 51 Homes Under the Hammer


Episode 51

A terraced house in Haslington near Crewe, a quirky house in Maryport in Cumbria and a terrace in near perfect condition in Derby are sold under the hammer.


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Transcript


LineFromTo

Hello and welcome to the show. Now, year-on-year, people are choosing

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bricks and mortar as their favoured way to invest their money.

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Yes, and if you're looking for potentially good returns

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and a decent yield, then, I believe property auctions are the way to go.

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But do remember to do your homework, because it is really good to know

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what you're getting into if you buy under the hammer.

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If you're thinking of taking on your first property project,

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be careful not to bite off more than you can chew.

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Yeah, it's good to have an ambitious start,

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but make sure you can afford what you're getting into

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in terms of both time and money.

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Yeah, let's find out what our three sets of buyers tackled on today's programme.

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In Haslington, Cheshire,

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I'm finding solutions to problems and playing the name game.

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Bob's your uncle, Dion's your presenter.

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You can't solve the location issue at this Maryport, Cumbria property.

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It's in a cemetery.

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So it's not going to be to everyone's taste.

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Perhaps more to everyone's tastes is a near-perfect house in Derby.

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Whoever buys this house, well, they could be sitting pretty.

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All these properties have been sold at auction,

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and we will find out who bought them and what they paid

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when they went under the hammer.

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Third and final time...

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This is Haslington, a historic village in Cheshire

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about two miles north-east of Crewe.

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Now, you wouldn't know it from these tranquil scenes,

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but this village has a violent history.

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During the English Civil War,

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this area was a site of various attacks and skirmishes

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between the Parliamentarians and the Royalist troops.

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Thankfully it's a lot more peaceful today.

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I am half a mile from Haslington

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and what I'm here to see is a two-bed terrace cottage

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that has a guide price of £69,000.

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What I can see, it's very pretty.

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Let's hope the inside is just as good.

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OK.

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Right, outside, very pretty-looking cottage.

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Not so pretty in here.

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Actually it's pretty dated.

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It's pretty dark and that doesn't look too good, either.

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That...

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HOLLOW KNOCKING

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..that is rising damp,

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and if you look at how this paper has come way, you can actually see

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underneath this paper. Look at that.

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Look at that, that's just falling away.

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That is not good.

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If we look underneath this carpet, look at that flooring

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they're covering up just there.

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That is original flooring and that won't have a damp course going through at all.

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What a pity. Get that cleaned up and it would be very, very nice.

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Not a bad size front room, though.

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Into the second reception room, again you've got a fireplace there.

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Underneath here you've got a bit of cloakroom space under there as well.

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A small second reception room

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and further down on the right-hand side you have the stairs

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going up to the bedrooms, and then at the end of the house

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you have got the kitchen.

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And it's incredibly tight, incredibly small.

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How can you create a bit more space in here?

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Shall we look outside, see what we find?

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Follow me. Follow me.

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Come on. Around here, round the door.

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That's it. Perfect, you can do it.

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What else have we got?

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So here we've got a building that has been put on a little bit later

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and what have they put in here?

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A downstairs toilet.

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Now, if there's a toilet upstairs, we can get rid of that,

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create a little bit more space inside the kitchen,

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make this inside space,

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put a window in there to look over the garden.

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Bob's your uncle. Dion's your presenter.

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MUSIC: Easy Like Sunday Morning by The Commodores

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Oh, I make it sound so easy.

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But that's my job.

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But it's someone else's job to make it happen.

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-# That's why I'm easy

-Ah-ah-ah-ah... #

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Right, upstairs we've got two bedrooms.

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Just here we have the front bedroom, a double bedroom, it's a good size.

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There are lots of cracks in the walls there.

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I think it is basically old plaster because of the age of the property,

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but it is always worth getting it checked out

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and always check the roof as well.

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Not a bad-sized room.

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Bedroom number two, again, not a bad size.

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But there's a bathroom.

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Your bathroom is off your bedroom.

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There's a way and a solution you could NOT walk through this bedroom

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and get to the bathroom. You could quite easily...

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Oops. There is a hole here somewhere.

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There it is. Just there.

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Need to watch my footing.

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Nearly went in there. Right, you could easily put a wall along here,

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all the way along, all the way along,

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and then put the door to the bedroom just there.

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Therefore that would give you a separate corridor

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going into the bathroom.

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Now there's an expensive way of doing that.

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You could get the specialists in, you could get the professionals in

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and they'll tell you how much it is going to cost,

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where walls need to be.

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There's also a very clever and a lot cheaper way of doing it.

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And you get to know your neighbours as well.

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Chat to the neighbours!

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Find out how they came up with a solution

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with this same problem.

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This is a row of terraced houses.

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They'll all have had this problem to deal with.

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And you might even get a chance to see how they finished it

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and then you could choose a solution which suits you best.

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And it won't cost you anything.

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# And I want to be free... #

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A slightly more urgent issue is the cause of that hole in the floor.

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Woodworm. You can see here, this piece has already come away.

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There's lots of little holes in here.

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This is the larvae from the woodworm that's causing the problem.

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I would suggest that you replace the damaged wood and treat the rest.

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And I'd also recommend a survey

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to see if it's anywhere else as well.

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What can an agent from the auction house who sold it tell us about

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this property, guided at 69 grand?

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It's a typical workers' cottage, probably built around 1860, 1870,

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that sort of period.

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It needs a lot of work doing to it, obviously.

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I don't think a great deal has been done since it was built.

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Pretty much needs going back to brick, I think, and starting again.

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Indeed, there's a lot to do.

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What could this house be worth when renovated and complete?

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Once the property is completed,

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I would say the property would be in the region of £110,000.

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And what about the rental value?

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It would rent really easily in Haslington, actually,

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and it would achieve probably around £525 to £550 per calendar month.

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I actually really like this little terraced cottage,

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and it's in a very nice village as well.

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But it does have its problems.

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Who was willing to take those problems on

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when it went under the hammer?

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65, can I start it at 65?

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Thank you. 65, seated, at £65,000.

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70 can we see now?

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70. £70,000.

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75, sir?

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71.

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71.

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One to you as well, sir, 72. 73. 74.

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75. 75.

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76, seated left. No?

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76, first bid.

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£76,000.

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77 anywhere else?

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Are we all done then at 76?

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At 76 then for the first time.

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£76,000 for the second time.

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Third and final time, £76,000.

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Your lot, sir. Well done.

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# It's a long, long way from home... #

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That final bid was made by Paul and Maria,

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who have a small portfolio and hope to add this one to it.

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The interesting thing is their other properties are

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in and around Southampton, which is 200 miles south of here.

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I met them at the house to find out a bit more.

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-Paul, nice to meet you.

-Thank you, Dion.

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-Maria.

-How do you do?

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Nice to meet you, and congratulations to both of you.

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Thank you.

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So, hold on, I'm trying to figure this out. Southampton and Crewe.

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Where we live, the property yields just aren't very good at all,

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so we decided to look a bit more towards the north.

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In the honest truth, this was the first property that we looked at

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when we came up to Crewe

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on a very wet day.

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We walked in here and I said to my wife as we walked out,

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"There is no way we are buying this house. There's too much to do!"

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-Is that what you said?

-Yes, that's what was said!

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Anyway, what are we, six weeks later? Here we are.

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And here we are on this show.

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We think it's a lovely village and it will rent out easily.

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It's an up-and-coming village and what's not to love about it, really?

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-Very pretty, isn't it?

-Yes, very pretty.

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Lovely, lovely little village location.

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Just outside of Crewe, a couple of nice pubs down the road, you know,

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what more could you want?

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There's always a common denominator in buying a property.

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You've got to have a nice pub nearby!

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It's now yours. You're three and a half hours away from home.

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What are you going to do with this property?

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I think the main problem we've got is the bathroom being off one of the bedrooms.

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We've got the idea of taking some room from the second bedroom,

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or alternatively turning the stairs round and taking some room

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from the, from this room, up, so that's our first issue.

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OK. There's a few other issues.

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I've had a wander around. There's a few bits and bobs.

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You've obviously noticed those other issues, yes.

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Well, it's a total replastering job to start,

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all the way through.

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A loo that attaches to the back of the kitchen.

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We're probably going to move that back,

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but the main thing already goes from upstairs, what we do there,

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because if we put the stairs going from the front, upwards,

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we're then going to lose part of this room,

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which then means probably we'll have to take out that chimney breast.

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And it's a double chimney which backs onto next door,

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which then gets its own problems there.

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-Ah.

-Behind, there's a chimney breast there - that's a single one

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which we'd like to move

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and if we do the corridor by leaving the stairs where they are,

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then we can then take out that chimney breast,

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which will give it a bit more room in there.

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-Yes, just to create that little bit more space.

-It's not perfect.

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-It's not huge, but it's a bit of space you could do with.

-Yes. Definitely.

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It'll help with putting a bed in there, flush against the wall.

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Very flush, your bed!

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LAUGHTER

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Little bit of rising damp as well.

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You noticed that as well.

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Yes, I've noticed that. We'll get to that in a minute.

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The cracks are not worrying you at all?

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We think it's just a question of replastering,

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and we have noticed the damp and we will get that looked at and fixed.

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What are you going to have to spend on this?

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Well, we've been talking and I think, realistically,

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it's going to be about 20,000,

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with a contingency of five sitting in there as well,

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because we don't know what we're going to find.

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The woodworm problem, that might bring extra problems.

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-Sorry about that.

-Yes, it's fine.

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Any reconfiguration down here?

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Down here I think it depends what we do upstairs,

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what we do with these chimney breasts.

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We did say we were going to knock down this wall here to make it all one through room.

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-OK.

-I'd forgotten that.

-Quite a few of the properties along here

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have done that and it's really nice.

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-That'll create a lot of space, won't it?

-It will.

-Yeah.

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Paul and Maria have a decent amount of work ahead of them,

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including fixing that woodworm problem.

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And they're allowing themselves eight months to get all the work

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done, because they live three and a half hours away.

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They're going to have to find a new build team

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but they have found a project manager, which means

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they can carry on with their day jobs in the finance sector

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and look after their other properties.

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But just in case you thought they were being a little bit tardy...

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We've already put an offer in on another property, actually,

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in Crewe, which has been accepted, so two now.

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-Well, I wish you all the best.

-Thank you.

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You have been taken out of your comfort zone, so to speak.

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-You're giving it a go.

-You could say that.

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Pretty much like me.

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THEY LAUGH

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-Good luck.

-Thank you.

-All the best.

-Thank you.

-Good luck.

-Thank you.

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So, Paul and Maria are experienced property developers,

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but they've never bought a property up north before.

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They've also never bought a property with so many issues they're going

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to have to overcome - a bit of rising damp,

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they've got woodworm upstairs

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and they're going to have to figure out access to that bathroom

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without going through a bedroom.

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How will they get on with this long-distance development?

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You can find out later in the programme.

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MUSIC: My Heart Will Go On by Celine Dion

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Today, I'm in Maryport on the southern tip of the Solway Firth,

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in beautiful Cumbria, surrounded by

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an Area of Outstanding Natural Beauty.

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The town itself is a Georgian place, well preserved.

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It's actually most famous as the home of Thomas Henry Ismay

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of the White Star Line, famous, of course, for the Titanic.

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Let's hope today's property has a slightly happier story to tell.

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But where Ismay invested in boats, I'm turning my course more inland.

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Well, the property I'm here to see is certainly unusual,

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I'll give it that. Good news to start off with -

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it's got great views of the sea and the local golf course.

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Bad news is it's actually the lodge of the local cemetery.

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So it's not going to be to everyone's taste.

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Well, it's certainly a unique location,

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but it is not looking too inspiring from outside.

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Still, two bedrooms, two reception rooms, guide price was £50,000 to £60,000.

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Dare I take a look inside?

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So through the front door you've got a large reception room to the right,

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and then this smaller one to the left.

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Now, it is all a bit dark and dingy but that is partly because the windows

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have been boarded up,

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but the whole house has a sort of slightly cramped,

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dark, labyrinth-type feel to it,

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which I don't know how you'd sort out.

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Nowhere more so than at the back here, because you come through

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what I imagine was the rear entrance to the property

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into what I think is some kind of an extension.

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As you can see, it is in a bit of a state.

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All the ceilings really bowed,

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so you're going to have to do work in here.

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But all in all, not really getting a good feel from this place, yet.

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# You either like it or you don't like it

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# I know because I see it... #

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This certainly isn't for everyone and it's not just the location that

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could put you off this lodge.

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It's in a right state.

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This really needs to be taken back to the bare brick and given a fresh start.

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Plumbing, damp course, plastering, the lot.

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Upstairs, two bedrooms and, a bit like the rest of the house,

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it's a case of good and bad.

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Bad, well...

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..look at the state. Obviously a major damp problem here.

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On the walls, doesn't look like the ceilings are in that good a state

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and I'd be concerned about the floorboards.

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That's the bad. The good news, well, nice, high ceilings

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and things like the original shutters there.

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Lovely features,

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and then the view out of the window, across the golf course,

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the Solway Firth, priceless.

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# You've got a beautiful view

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# You're gonna shake it off... #

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The view on the inside is less impressive.

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It looks like lots of work and expense

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and then there's that other viewpoint.

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Well, when you're buying a property like this,

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especially in a location like this, you're going to have to be really,

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really careful about several things.

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One of which is where the boundaries to the property lie.

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In this case, you have rights of way down this little pathway,

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you own part of this grass area here.

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Obviously you're bounded by the road on that side, but then

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question marks about the front of the property, so it's all something

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that your solicitor will have to work overtime on

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and you must, must, MUST read the legal pack.

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The other issue is what you can and can't use this property for.

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Clearly you have to be very sensitive about the fact that you are next to a graveyard,

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so again, it's things which really need to be considered

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before you buy this property.

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This won't be straightforward.

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The cemetery is a publicly maintained space

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and will need respecting.

0:17:380:17:40

So permissions will need to be obtained for all manner of things,

0:17:400:17:44

and I suspect just putting a skip near the building will need permission.

0:17:440:17:48

Noise disruption will have to be kept to a minimum,

0:17:480:17:51

so I hope whoever buys it likes paperwork,

0:17:510:17:53

because I expect there may be a fair bit.

0:17:530:17:56

# It's too complicated It's too complicated

0:17:560:17:59

# I just wanna know the score... #

0:17:590:18:01

But will these complications be worth overcoming?

0:18:030:18:05

What does the auctioneer that sold it think?

0:18:050:18:07

It wouldn't be a mainstream property,

0:18:090:18:12

but I think there is a strong demand for unusual properties.

0:18:120:18:16

And if you looked in a westerly direction,

0:18:160:18:18

you'd see the Scottish hills which has got to be a positive.

0:18:180:18:22

The outlook might be positive from his point of view.

0:18:220:18:26

I am more interested in its financial outlook

0:18:260:18:29

for a property that was guided at 50,000 to 60,000.

0:18:290:18:33

I think the end value, depending on the spec,

0:18:330:18:35

would be in the region of £150,000.

0:18:350:18:38

I think the potential rental income would be in the region

0:18:380:18:42

of £550 per calendar month.

0:18:420:18:44

Well, for lots of reasons,

0:18:480:18:50

this house is not going to be everyone's cup of tea.

0:18:500:18:54

There is a lot of work to be done and obviously the location

0:18:540:18:59

won't suit everybody. Still, the guide price was very reasonable,

0:18:590:19:03

so let's see who was tempted when it went under the hammer.

0:19:030:19:07

This is a good one, ladies and gentlemen.

0:19:090:19:12

Last quoted guide, then, put me in, 60?

0:19:120:19:15

55.

0:19:150:19:17

55 I've got.

0:19:170:19:18

At £55,000 to the rear.

0:19:180:19:21

55, I'll take it in twos.

0:19:210:19:23

57 I've got. Can I say 59, madam?

0:19:230:19:26

And 61 shall I say?

0:19:260:19:27

61 and a half. 63.

0:19:270:19:29

65.

0:19:290:19:31

At £65,000.

0:19:310:19:33

65 and a half, I'll take it.

0:19:330:19:35

Might be too early but I'll take it.

0:19:350:19:37

66 and a half.

0:19:370:19:38

Shake of the head at a half.

0:19:390:19:41

At £66,000.

0:19:410:19:42

66.

0:19:430:19:45

Last time England had a team.

0:19:450:19:47

At £66,000, all done?

0:19:470:19:50

First time, second time, third and final time.

0:19:500:19:54

GAVEL BANGS

0:19:540:19:55

And the happy, successful bidder for the Maryport lot was Ali.

0:19:550:19:59

# You know I'm happy now You know I'm happy now... #

0:19:590:20:04

And I met her back at the lodge to find out why she was so pleased to get this unusual property.

0:20:060:20:11

Ali, lovely to meet you.

0:20:130:20:14

Congratulations.

0:20:140:20:16

Tell me why you wanted to buy this place.

0:20:160:20:19

Price, really. And I wanted,

0:20:190:20:21

the only really way I could get somewhere to do up was somewhere

0:20:210:20:25

a bit quirky that other people might avoid.

0:20:250:20:27

And something with a lot of work, just to make it cheaper.

0:20:270:20:30

-It's all three of those things, isn't it?

-Yes.

0:20:300:20:32

Quirky one that people want to avoid and does need a lot of work.

0:20:320:20:35

Are you up for a challenge?

0:20:350:20:37

Yes. Just as well!

0:20:370:20:38

THEY LAUGH

0:20:380:20:39

Tell me a bit about you.

0:20:390:20:41

I'm from the north-east. I ran a restaurant there for 19 years,

0:20:410:20:45

put it on the market when my mum became ill a year ago

0:20:450:20:48

just because your priorities change when that kind of thing happens.

0:20:480:20:51

Sadly, we lost her. I was going to come and look after her

0:20:510:20:54

but we lost her and I thought, just keep going with the sale

0:20:540:20:58

and have a lifestyle change.

0:20:580:20:59

So I came over here and I've been renovating my mum's property,

0:20:590:21:02

which has been left to me and my brother,

0:21:020:21:04

and that's going to be a holiday rental in the Lake District.

0:21:040:21:07

So I'm just about finished doing that one,

0:21:070:21:09

so it's time to do something else.

0:21:090:21:11

Now, location.

0:21:110:21:13

It's beautiful here. We've got the golf club, we've got the sea,

0:21:130:21:15

it's beautiful here.

0:21:150:21:17

You've skipped merrily over the fact that it's on the cemetery.

0:21:170:21:21

Yes!

0:21:210:21:22

Mention the sea, mention the golf course, but don't mention the cemetery!

0:21:220:21:26

Did that not put you off, at all,

0:21:260:21:28

that it's on an active cemetery?

0:21:280:21:29

It didn't put me off. For sale in the future it might.

0:21:290:21:33

Rental, I don't think it'll matter that much.

0:21:330:21:35

I think it would make a good holiday rental with the golf course and the beach.

0:21:350:21:39

-A holiday rental?

-Well, if you wouldn't want to stay here for good,

0:21:390:21:42

you could stay for a week and then leave.

0:21:420:21:45

People like quirky, don't they?

0:21:450:21:47

They like staying in castles, they like staying in windmills,

0:21:470:21:50

so, hey.

0:21:500:21:52

Speaking of windmills,

0:21:520:21:53

it's easy to see why Ali is a big fan of this quirky property.

0:21:530:21:58

But as she is no longer running a business,

0:21:580:22:00

getting finance on this lodge was tricky.

0:22:000:22:02

The banks, building societies, wouldn't touch me, really.

0:22:040:22:07

Because until I start getting something going with

0:22:070:22:10

renting my own house off, renting Keswick off, I have no income kind of thing.

0:22:100:22:14

So how did you get the money at all?

0:22:140:22:16

Through an independent mortgage advisor.

0:22:160:22:18

If you hadn't got the money...?

0:22:180:22:19

It would have been a real worry.

0:22:190:22:22

I probably would have had to either lose my 10% or try and get the money

0:22:220:22:26

elsewhere like credit cards and balance transfer

0:22:260:22:29

until I got some rent coming in and then I could reapply for a mortgage.

0:22:290:22:32

It was a problem. It was a worry.

0:22:320:22:34

OK, wow. What about the complications of buying somewhere like this?

0:22:340:22:38

I imagine the definition of where your land begins and ends has been quite interesting.

0:22:380:22:43

Yes, and then there's public rights of way as well, round the side,

0:22:430:22:46

so it is awkward. It's not a normal, cut and dried property.

0:22:460:22:50

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

0:22:500:22:52

I think all the plaster's going to have to come off.

0:22:520:22:54

It's pretty much a mess inside.

0:22:540:22:57

I'd like to try and squeeze a bathroom in upstairs if it's possible.

0:22:570:23:01

Then I could open out to all the back area.

0:23:010:23:03

The back bit's more modern. It doesn't look too nice,

0:23:030:23:06

so I'd like to try and tidy it so it looks more like the original age of the building.

0:23:060:23:11

Ali is not totally sure about budget or timescale.

0:23:110:23:14

She vaguely thinks 15,000 to 20,000

0:23:140:23:17

and maybe up to a year to do the work.

0:23:170:23:20

And then this would be a holiday let,

0:23:200:23:23

blimey, with a difference!

0:23:230:23:26

And how hands-on and day-to-day are you going to be involved in it?

0:23:260:23:29

I'll do as much as I can. I'm good at donkey work - decorating, tiling,

0:23:290:23:33

bit of basic woodwork, that kind of thing. I enjoy doing it, so...

0:23:330:23:37

And living here at the same time, or not?

0:23:370:23:40

I'll probably have to, actually, just to make sure

0:23:400:23:43

the place is safe and sound and secure.

0:23:430:23:46

But I'd prefer a bit of a bathroom in first.

0:23:460:23:49

There's not a lot there, unless I use the sea.

0:23:490:23:51

It's a bit of a long hike.

0:23:510:23:53

Well, good on you. You've got a few challenges ahead but we're really

0:23:530:23:57

looking forward to seeing how you get on. We wish you all the best.

0:23:570:24:01

THEY LAUGH

0:24:010:24:02

-Good luck with it.

-Thank you.

0:24:030:24:05

Thanks.

0:24:050:24:06

-Hmm.

-HE SUCKS HIS TEETH

0:24:060:24:07

Well, whilst I really admire Ali's optimism, I am sure you will agree

0:24:070:24:12

there are a lot of hoops to jump through

0:24:120:24:15

before this place becomes a holiday let.

0:24:150:24:18

How will she get on?

0:24:180:24:20

You can find out later in the show.

0:24:200:24:22

Coming up, this three-bed in Derby leaves me FLOORED with its features.

0:24:240:24:30

They are SO highly sought after and look at these wee fellas.

0:24:300:24:35

But has Ali found the ceiling of her budget in Maryport, Cumbria?

0:24:350:24:40

The money, you've used half of it to live on

0:24:400:24:42

while you're waiting for everything happening.

0:24:420:24:44

Now we head back to Haslington near Crewe in Cheshire.

0:24:500:24:54

This two-bed cottage had a guide price of 69 grand.

0:24:540:24:58

It has some hidden gems and some hidden nasties.

0:24:580:25:01

More obvious problems needed addressing,

0:25:010:25:04

like the old bathroom off a bedroom conundrum.

0:25:040:25:09

Put a wall along here, all the way along,

0:25:100:25:13

all the way along, and then put the door to the bedroom just there.

0:25:130:25:18

Therefore that'll give you a separate corridor

0:25:180:25:21

going into the bathroom.

0:25:210:25:22

# So no problems, no problems

0:25:230:25:28

# Only solutions... #

0:25:280:25:31

And I was on a roll when it came to solutions for that cramped kitchen.

0:25:310:25:36

The answer was out the back.

0:25:360:25:38

Downstairs toilet.

0:25:380:25:39

Now, if there's a toilet upstairs, we can get rid of that,

0:25:390:25:44

create a little bit more space INSIDE the kitchen,

0:25:440:25:47

Bob's your uncle,

0:25:470:25:48

Dion's your presenter.

0:25:480:25:51

And Paul and Mary were the buyers, paying 76 grand.

0:25:510:25:55

They had come all the way from Southampton

0:25:550:25:58

to start a rental portfolio in Crewe

0:25:580:26:00

and Paul felt they may not have got off on the right foot.

0:26:000:26:05

The honest truth, this was the first property that we looked at when

0:26:050:26:09

we came up to Crewe on a very wet day.

0:26:090:26:12

Walked in here and I said to my wife as we walked out,

0:26:120:26:15

"There is no way we are buying this house. There's too much to do!"

0:26:150:26:19

-Is that what you said?

-Yeah. That's what was said.

0:26:190:26:22

By hiring a local builder,

0:26:250:26:27

doing a bit of the work themselves and spending 20 grand,

0:26:270:26:30

they hoped to get this place ready in about eight months and tenanted.

0:26:300:26:35

After a year, we are back.

0:26:370:26:39

So how have they got on?

0:26:390:26:41

# Lucky for you that's what I like That's what I like

0:26:410:26:45

# Lucky for you that's what I like That's what I like... #

0:26:450:26:49

This downstairs looks so much better.

0:26:510:26:54

A bigger and brighter living room and an extended kitchen.

0:26:540:26:58

# That's what I like, lucky for you That's what I like

0:26:580:27:01

# That's what I like... #

0:27:010:27:06

I think we basically created a silk purse out of a sow's ear, to be fair.

0:27:060:27:11

Effectively, as you walked in before, you had two rooms and we've taken

0:27:110:27:15

down the dividing wall, so we've made it into one room.

0:27:150:27:18

The main thing which is the thing you don't actually see, because it's

0:27:180:27:21

hidden by the new carpet, is the fact that the whole of the floor was

0:27:210:27:25

excavated and obviously a damp-proof course has been put in.

0:27:250:27:29

So when we first bought the property, there was a kitchen which adjoined

0:27:290:27:33

an outside toilet which could only be accessed by going outside.

0:27:330:27:38

So we've knocked the wall down between those two buildings

0:27:380:27:41

to merge the toilet with the kitchen,

0:27:410:27:43

creating a bigger kitchen and added an extra window in there to create some more light.

0:27:430:27:49

They promised to fix the layout problems upstairs.

0:27:520:27:55

# I'll never make a promise that I can't keep

0:27:550:27:58

# I promise that your smile It'll never be... #

0:27:580:28:01

And they have done just that.

0:28:010:28:03

You no longer have to walk through the bedroom to get to the bathroom.

0:28:030:28:07

# That's what I like That's what I like... #

0:28:070:28:10

So what's changed upstairs is that we put a corridor in, so that you

0:28:100:28:15

have got separate access into the bathroom.

0:28:150:28:18

We put new windows into the front bedroom,

0:28:180:28:21

we've replastered all the walls

0:28:210:28:24

and put a new bathroom in with a nice skylight.

0:28:240:28:28

The house and the back garden are now in great shape.

0:28:290:28:32

But it's taken a year to get here,

0:28:330:28:35

rather than their initial eight-month plan.

0:28:350:28:39

Finding a builder was the biggest challenge to begin with.

0:28:390:28:41

That took us a few months, hence why it's taken us a year.

0:28:410:28:44

There's one rule in this business, effectively.

0:28:440:28:47

If a builder's ready to work straightaway, you don't use them.

0:28:470:28:51

That's the main rule, because you know there's so much work about.

0:28:510:28:55

An awful lot of work has been done.

0:28:580:29:00

They gave themselves a 20 grand budget and a five grand contingency,

0:29:000:29:04

so did they stick to it?

0:29:040:29:06

When I originally looked at the budget, that was on the basis that

0:29:080:29:11

I would do quite a bit of work myself, bringing a friend up.

0:29:110:29:14

Given the distance and given his other commitments, we couldn't do that.

0:29:140:29:18

We had a builder in and so he was effectively project managing,

0:29:180:29:22

which added another layer to the costs.

0:29:220:29:25

And at the end of the day, we didn't quite make the 20,000,

0:29:250:29:28

we actually made it for somewhere between 33 and 34,

0:29:280:29:32

so a bit of an overrun.

0:29:320:29:33

And while they've got a great finished product,

0:29:350:29:37

over time and over budget might have led to some short tempers,

0:29:370:29:42

so how have they worked together?

0:29:420:29:44

Paul's really bossy, so I just do as I'm told.

0:29:440:29:47

I'm not making any comment!

0:29:490:29:50

I don't consider myself bossy at all.

0:29:500:29:52

I just consider that I give the appropriate direction

0:29:520:29:55

as and when required!

0:29:550:29:56

SHE LAUGHS

0:29:560:29:57

Well, it's time to find out if two local estate agents think

0:29:590:30:03

this property is, as they say in these parts, "boss",

0:30:030:30:06

which, if you're not familiar, means "outstanding".

0:30:060:30:09

The layout change is brilliant, really,

0:30:090:30:11

because obviously it's sort of quite old-fashioned to have to go to the

0:30:110:30:14

back, to go through a bedroom to get to the bathroom,

0:30:140:30:17

but the thing that I've noticed is, for example, the finish.

0:30:170:30:20

The doors are of really high quality.

0:30:200:30:22

And especially the changes they've made to the kitchen,

0:30:220:30:24

it's made it so much more of a usable space.

0:30:240:30:27

The house is very, very nice.

0:30:270:30:28

What they've done to it is very fashionable with all the grey tones

0:30:280:30:32

that they've used. The selling points of the property are

0:30:320:30:35

the house is absolutely ready to move into.

0:30:350:30:37

Haslington is a very popular village.

0:30:370:30:39

The schools are very well regarded

0:30:390:30:41

and there are several large employers

0:30:410:30:43

that work within easy travelling distance from the property.

0:30:430:30:48

Maria and Paul have spent £110,000

0:30:510:30:54

and the agents think it could fetch a top figure of 120 grand on the resale market.

0:30:540:31:01

That overspend has left them little room,

0:31:020:31:04

as that would mean a profit of ten grand

0:31:040:31:07

before the usual taxes and expenses.

0:31:070:31:11

But perhaps that great finish will aid the rental figure

0:31:110:31:14

and that's really what they're looking for.

0:31:140:31:17

As a rental, I would ask somewhere between £575 per calendar month

0:31:170:31:21

to £595 per calendar month and I would expect to get absolutely that.

0:31:210:31:26

It's in beautiful condition.

0:31:260:31:28

We have a similar property on the rental market at the moment

0:31:280:31:31

that's on the market for 595 per calendar month.

0:31:310:31:34

Well, I think that's spot-on, to be fair.

0:31:340:31:36

We were thinking 575 to 600.

0:31:360:31:39

When we've reviewed the market, it's around those figures,

0:31:390:31:41

so I think that is spot-on.

0:31:410:31:43

Yeah, so we're pleased with that.

0:31:430:31:44

£595 per calendar month would give them a yield of just under 6.5%.

0:31:480:31:55

This is the first Crewe addition to their portfolio,

0:31:550:31:58

so what are their feelings about this project?

0:31:580:32:02

We feel quite pleased that the project has now finished.

0:32:030:32:07

There are a few things that we may have done differently, but

0:32:070:32:10

at the end of the day,

0:32:100:32:11

it's a two-bedroom terrace and it's quite nice.

0:32:110:32:14

We're quite pleased with what we've achieved

0:32:140:32:16

and we've learnt a lot on the way.

0:32:160:32:17

A connection with Derby and deer might not immediately

0:32:220:32:26

spring to mind, but some believe that the origin of the name

0:32:260:32:29

of the city could derive from an old English word, Deorby,

0:32:290:32:33

meaning Village of the Deer.

0:32:330:32:35

Nowadays, Derby's a thriving city in the heart of England,

0:32:370:32:40

popular with commuters and students,

0:32:400:32:42

so will today's property BUCK any trends or have me FAWNING over it?

0:32:420:32:49

OK, I'll stop with the deer thing now!

0:32:490:32:52

Just two miles from the town centre,

0:32:520:32:54

the property I'm here to see should be an attractive proposition for

0:32:540:32:57

developers. It has its own front and back garden and three bedrooms,

0:32:570:33:02

so it would make an ideal family home too, so, on paper, pretty good.

0:33:020:33:07

The guide price was £99,000 plus.

0:33:070:33:10

Let's find out what you get.

0:33:100:33:12

MUSIC: Fool's Gold by The Stone Roses

0:33:120:33:15

Look! Look at these amazing tiles!

0:33:160:33:19

They are SO highly sought-after.

0:33:190:33:22

And look at these wee fellas - they're in brilliant condition.

0:33:220:33:24

You don't find many things like this in such good condition after, what,

0:33:240:33:28

over 100 years?

0:33:280:33:30

There's character to this property already.

0:33:300:33:32

You just get a feeling when you come in a house and the feeling's good here. You've got archways.

0:33:320:33:36

The paint is in really good nick, good condition.

0:33:360:33:39

And through to your reception room, where there's been two rooms

0:33:390:33:42

at one stage and opened up to have this amazing feeling of space.

0:33:420:33:46

You have furniture which, you know, nothing wrong with a lot of it.

0:33:460:33:50

And the kitchen? Well, to my right...a basement...

0:33:500:33:55

..always good news. And then the kitchen itself...

0:33:560:33:59

..is pretty special.

0:34:000:34:01

It's so easy to say, add the wow factor, get a new bathroom,

0:34:010:34:05

get a new kitchen, but why take this out when it's clearly got so much love around it?

0:34:050:34:09

The only negatives I can see so far,

0:34:090:34:11

the flooring's a bit dated and cheap.

0:34:110:34:13

You've got linoleum, you've got laminate flooring.

0:34:130:34:15

You could upgrade that.

0:34:150:34:17

You could maybe upgrade your surfaces,

0:34:170:34:20

but pretty much all smiles from me.

0:34:200:34:23

Wow, you could move straight in here!

0:34:240:34:26

The flooring could do with an update,

0:34:260:34:29

but other than that, this is great.

0:34:290:34:31

Happy days!

0:34:310:34:32

# Sunday, Monday, happy days

0:34:320:34:35

# Tuesday, Wednesday Happy days... #

0:34:350:34:37

Upstairs, starting at the back of the house, a small bedroom,

0:34:370:34:41

no more than a single. The bathroom?

0:34:410:34:44

Perfectly usable, but you'd probably want a new suite in there.

0:34:440:34:47

What is a bit of a problem, the first one I've spotted, is some damp.

0:34:470:34:50

You want to investigate that.

0:34:500:34:52

It doesn't look too serious - fingers crossed it isn't.

0:34:520:34:55

And then, OK, a good size.

0:34:550:34:57

That's more like it. A good-sized double bedroom.

0:34:570:35:01

A lot of pine furniture,

0:35:010:35:03

which lends me to think that perhaps

0:35:030:35:05

this was last decorated in the '80s,

0:35:050:35:07

but pine furniture, although not in vogue just now,

0:35:070:35:10

can easily be upcycled.

0:35:100:35:13

This is a great master bedroom.

0:35:130:35:15

It's bright, it's airy, it's in good condition

0:35:150:35:17

and whoever buys this house, well, they could be sitting pretty.

0:35:170:35:23

# Relax, take it easy

0:35:230:35:27

# For there is nothing that we can do

0:35:270:35:31

# Relax... #

0:35:310:35:32

I reckon you could sort this out without breaking a sweat.

0:35:320:35:36

OK, that touch of damp is worth getting an expert eye

0:35:360:35:39

to check it over, and the bathroom isn't quite up to standard,

0:35:390:35:45

but step outside and again you really don't need to do much at all,

0:35:450:35:50

other than relax and maybe potter around in the shed.

0:35:500:35:54

So, this place, compared with other properties I've seen, is a breeze.

0:35:540:35:58

But what does a local estate agent make of the house

0:36:000:36:03

and the location it's in?

0:36:030:36:05

We're in an area of Derby that's a very popular residential area

0:36:050:36:10

and it's also popular for students.

0:36:100:36:12

The students do like to be close to the city centre, which this is.

0:36:120:36:16

I think the property needs some TLC.

0:36:160:36:18

Perhaps put some new carpets down, internal doors, that kind of thing.

0:36:180:36:23

Unless it is that they look to do the investment market,

0:36:230:36:26

in which case they might look to split the property

0:36:260:36:29

into what we call a HMO,

0:36:290:36:31

where they do the student lets with multiple occupancy.

0:36:310:36:37

The definition of a House of Multiple Occupation

0:36:370:36:40

isn't that simple, but generally it's a house or flat

0:36:400:36:43

let out to three or more people

0:36:430:36:46

who are from more two or more households and share facilities.

0:36:460:36:50

It does mean additional expenditure and, possibly,

0:36:500:36:53

you'll need to obtain a licence from your local council,

0:36:530:36:56

so when it comes to the numbers,

0:36:560:36:59

how does renting this as a family home versus an HMO look?

0:36:590:37:04

Three-bedroom terraced properties in this area for residential tend to

0:37:050:37:10

rent for around the £700 to £750 per calendar month.

0:37:100:37:15

As a student accommodation, you could get anywhere from

0:37:150:37:19

£1,200 per calendar month to £1,400 per calendar month.

0:37:190:37:23

That would entail turning the sitting room into a bedroom to give

0:37:230:37:27

you another lettable room.

0:37:270:37:30

But what could this house, guided at 99 grand-plus, sell for?

0:37:300:37:34

If it had some modernisation, some work done to it,

0:37:340:37:38

it could sell for in the region of £145,000.

0:37:380:37:42

Other than that spot of damp,

0:37:430:37:45

I'm struggling to find anything negative to say about this house.

0:37:450:37:49

You could have grand plans and transform it into something truly

0:37:490:37:52

spectacular, or with a lick of paint you could move in straightaway.

0:37:520:37:56

I'm sure lots of people wanted it.

0:37:560:37:59

Let's find out who got it when it went under the hammer.

0:37:590:38:03

A mid-terrace property.

0:38:040:38:06

Start the bidding at 95,000.

0:38:060:38:09

Here. At 95,000 I'm away.

0:38:090:38:11

96. 97. 98. 99.

0:38:110:38:15

At 100, sir.

0:38:170:38:18

100 is bid. 101.

0:38:180:38:20

And, as I thought, this was a popular lot.

0:38:200:38:23

We rejoin the bidding at £120,000, going up in 500s.

0:38:230:38:28

120.

0:38:290:38:30

And a half? No.

0:38:300:38:32

At £120,000 with the gentleman at the back of the room

0:38:320:38:36

for the first time. At £120,000 for the second time.

0:38:360:38:40

For the third and final time.

0:38:400:38:42

And a half. 121.

0:38:420:38:44

121.

0:38:440:38:45

And a half. 122? No.

0:38:450:38:48

At £121,500, the lady's bid seated,

0:38:480:38:52

for the first time.

0:38:520:38:53

For the second time.

0:38:530:38:55

Third and final time. The hammer's up, fair warning.

0:38:550:38:58

It goes at £121,500.

0:38:580:39:00

Sold. It's yours. And your paddle number, madam?

0:39:000:39:03

The house was bought for £121,500 by Alison and her son Sam.

0:39:030:39:09

Alison's a former primary school teacher

0:39:090:39:11

who switched to property developing three years ago.

0:39:110:39:14

Sam has just finished his degree in music technology.

0:39:140:39:18

Dog Alfie checked out the back garden

0:39:180:39:20

whilst I chatted to Alison and Sam.

0:39:200:39:22

Alison, hello. Pleased to meet you.

0:39:220:39:24

-I'm pleased to meet you, too.

-Sam.

-Nice to meet you.

0:39:240:39:26

Pleased to meet you too. So, is this a venture together?

0:39:260:39:29

It is, yes, it is.

0:39:290:39:30

We're both going to work on this one.

0:39:300:39:33

And how many properties do you...?

0:39:330:39:34

We've got four properties now, two in Leicester and two here.

0:39:340:39:40

One of the Leicester ones is a three-student,

0:39:400:39:43

the other Leicester is a family let.

0:39:430:39:45

Samuel is living in the student let that we've got here in Derby

0:39:450:39:49

and this will, hopefully, be another three-person student let.

0:39:490:39:51

This will be a student let?

0:39:510:39:53

It will, yeah.

0:39:530:39:54

Lucky students!

0:39:540:39:55

-I know.

-So why particularly are student lets your bag?

0:39:550:40:00

Why is that the area you've chosen?

0:40:000:40:02

You get a lot more rental income.

0:40:020:40:05

Obviously, you have to furnish it and you have a lot more turnover of tenants.

0:40:050:40:11

But you do get a much higher rental income.

0:40:110:40:14

Houses of multiple occupancy can give a bigger yield for sure,

0:40:160:40:20

but you do need to make the property compliant with the regulations,

0:40:200:40:24

so fire alarms, fire doors and so on.

0:40:240:40:26

And student lets generally run for only nine months

0:40:260:40:29

and then, not only do you need to find new tenants,

0:40:290:40:32

but the properties may need to be cleaned and refurbished

0:40:320:40:35

to get them ready to go again.

0:40:350:40:38

So they do require more work and attention

0:40:380:40:41

and they're definitely not for everyone.

0:40:410:40:44

You'll have seen a lot of student properties.

0:40:440:40:47

-Yes.

-How does this compare?

0:40:470:40:49

Already, from some of the ones I went to look at,

0:40:490:40:53

this is already a good spec.

0:40:530:40:54

Good spec?! My student days are well behind me, but this is palatial

0:40:540:40:59

compared to many you get.

0:40:590:41:01

So what do you want to do to improve it?

0:41:010:41:05

We're going to re-carpet everywhere.

0:41:050:41:08

We'll redecorate everywhere.

0:41:080:41:10

It's got a very small third bedroom at the moment.

0:41:100:41:13

Not really a study bedroom.

0:41:130:41:15

So we're actually going to build a wall between

0:41:150:41:17

the lounge and the dining room to establish a third double bedroom.

0:41:170:41:22

So what would the smaller room upstairs be?

0:41:220:41:25

That's debatable at the moment.

0:41:250:41:28

We are still wondering whether to put another set of facilities in.

0:41:280:41:31

One of our lets has been really successful

0:41:310:41:34

because it's got two lots of facilities.

0:41:340:41:36

It's got a shower room and a bathroom in it.

0:41:360:41:39

And we've never had any trouble getting students in there.

0:41:390:41:41

What's the budget coming in at?

0:41:410:41:43

Ten to 12?

0:41:430:41:45

It is, yeah.

0:41:450:41:47

Alison will have the damp checked over by a professional

0:41:470:41:50

and, fingers crossed, they hope to complete it within 12 weeks,

0:41:500:41:54

so that it's then ready for the next student intake.

0:41:540:41:58

How will the work be split?

0:41:580:42:00

What do you both intend to do?

0:42:000:42:02

I'm going to try and do as much as I can, you know,

0:42:020:42:05

see if I can learn a few things, like maybe replacing a floor or...

0:42:050:42:11

-Yes.

-Certain things like that which will obviously save costs.

0:42:110:42:14

And it's not just effort Sam's putting in.

0:42:170:42:19

Nope, he's putting in his own dosh.

0:42:190:42:22

I had some inheritance which I've decided to put into this,

0:42:220:42:27

just so, instead of it gathering interest in a bank,

0:42:270:42:31

I thought it was a better option. It's putting it to good use.

0:42:310:42:33

And who knows? I might be able to make something from it as well.

0:42:330:42:36

It truly is a joint venture.

0:42:360:42:38

Yes. That's right, yeah.

0:42:380:42:40

-And do you both get on?

-Yeah.

0:42:400:42:41

Yeah, we are pretty good at getting on, aren't we?

0:42:410:42:44

Yeah, we're both quite, erm...

0:42:440:42:47

What's the word? I don't want to say controlling!

0:42:480:42:50

But, yeah... You do listen to me though.

0:42:510:42:54

-We are both quite sort of leader-type people, so...

-Yeah.

0:42:540:42:56

Sometimes we butt heads when we are very opinionated on something.

0:42:560:42:59

We are actually quite patient with each other as well.

0:42:590:43:02

We don't argue, do we?

0:43:020:43:03

-No.

-No.

-So maybe more than controlling,

0:43:030:43:06

a better way of saying it, you're more organised and you know your minds

0:43:060:43:09

and you're going to do a cracking job.

0:43:090:43:10

And I can't wait to see what you do.

0:43:100:43:14

-Good luck.

-Thank you very much.

0:43:140:43:16

-Thank you, Alison.

-Thank you.

0:43:160:43:18

Thank you.

0:43:180:43:19

It's lovely to see this family affair with a mother and son team coming together.

0:43:200:43:25

It seems like they have everything covered.

0:43:250:43:27

They know the student rental market, they know the location.

0:43:270:43:30

However, I'm not sure about those carpets.

0:43:300:43:33

Better to have something for students that they can wipe down.

0:43:330:43:36

You can find out what they opted for later in the show.

0:43:360:43:39

So, our first set of buyers can take a well-earned rest.

0:43:430:43:46

What about the other two?

0:43:460:43:47

Yes, will it be a stunning winner or a dodgy own goal?

0:43:470:43:50

Let's find out.

0:43:500:43:51

We return now to Cumbria

0:43:540:43:56

and the southernmost town on the Solway Firth of Maryport.

0:43:560:44:00

We floated in almost six years ago

0:44:010:44:04

to have a look at, shall we say, a unique property?

0:44:040:44:07

Well, the property I'm here to see is certainly unusual.

0:44:070:44:11

I'll give it that. Good news to start off with -

0:44:110:44:13

it's got great views of the sea and the local golf course.

0:44:130:44:16

Bad news is it's actually the lodge of the local cemetery.

0:44:160:44:21

So it's not going to be to everyone's taste.

0:44:210:44:25

Yes, this two-bedroom detached property sat in the grounds of the current town graveyard.

0:44:250:44:30

But it was the inside that gave me the real chills.

0:44:300:44:33

The whole house has a sort of slightly cramped, dark, labyrinth-type feel to it.

0:44:350:44:42

To say there was plenty of work to do here was

0:44:440:44:46

something of an understatement.

0:44:460:44:47

Plus, you would have to take into account all the legal red tape

0:44:470:44:50

that would go along with buying a property like this.

0:44:500:44:55

A simple project this was not.

0:44:550:44:57

Still, at a guide price of £50,000 to £60,000,

0:45:000:45:03

it did have one or two brave souls interested on auction day.

0:45:030:45:07

Third and final time...

0:45:070:45:08

The happy buyer was Ali.

0:45:110:45:13

Former restaurateur Ali bought the property for £66,000.

0:45:130:45:18

She was up for the challenge and was nothing if not positive.

0:45:180:45:22

Did that not put you off at all, an active cemetery?

0:45:230:45:25

It didn't put me off.

0:45:250:45:27

It would make a good holiday rental with the golf course and the beach.

0:45:270:45:30

A holiday rental?!

0:45:300:45:32

Well, if you wouldn't want to stay here for good...

0:45:320:45:34

you could stay for a week and then leave.

0:45:340:45:37

# Holiday... #

0:45:370:45:40

Ooh, that might be a tough sell, but people do like quirky.

0:45:400:45:43

Ali certainly had some challenges ahead of her.

0:45:450:45:48

She earmarked a timeframe of one year

0:45:490:45:51

and a budget of £20,000 to renovate this dilapidated lodge.

0:45:510:45:55

Well, it's almost six years later

0:46:000:46:02

and we've returned to see just how well she's been getting on.

0:46:020:46:06

# I'm ready for the good life... #

0:46:060:46:08

Now, there's still obviously plenty to do here,

0:46:220:46:25

but Ali has managed to make this old cemetery lodge look something like a cosy home

0:46:250:46:30

and it's not been easy,

0:46:300:46:31

especially when it came to red tape.

0:46:310:46:34

It was difficult for the services in the first place, because

0:46:340:46:38

the water was still connected to the graveyard taps.

0:46:380:46:40

The electric was still connected to the disused chapel in the far corner of the graveyard.

0:46:400:46:45

And it took three years until everything was separated and in my name.

0:46:450:46:48

The kitchen is still a work in progress obviously,

0:46:500:46:53

as is much of the downstairs, bar the living room.

0:46:530:46:55

Upstairs though there are significant improvements.

0:46:570:47:00

The aforementioned bathroom is modern and attractive

0:47:000:47:03

and thankfully working.

0:47:030:47:05

There's two great-sized double bedrooms up here.

0:47:070:47:10

And Ali looked right at home.

0:47:120:47:14

One of the main problems here for Ali was outdoor space.

0:47:170:47:20

She has overcome that issue with a bit of a compromise.

0:47:200:47:24

This space can't officially be called a roof garden

0:47:350:47:37

because of the access,

0:47:370:47:39

but it does give her the outdoor space she wanted

0:47:390:47:42

whilst still respecting the cemetery grounds.

0:47:420:47:45

Ali has been living here and doing lots of the work at the same time,

0:47:450:47:48

which is pretty tough.

0:47:480:47:50

I've done most of the joinery work myself.

0:47:500:47:54

All the small bits of plastering, I've done myself.

0:47:540:47:56

Decorating, obviously myself.

0:47:560:47:58

I did the bathroom, 95% of the bathroom work I did myself.

0:47:580:48:03

Just a little bit of help with the plumbing.

0:48:030:48:05

I'll have to have help with plastering the kitchen,

0:48:050:48:07

but I'll try and do the rest myself.

0:48:070:48:09

Fingers crossed.

0:48:090:48:11

There's still lots to do,

0:48:110:48:13

but lots of the specialists and trades have already done their bit.

0:48:130:48:17

There's been extensive plastering in the more inaccessible spots

0:48:170:48:21

and all the windows have been replaced

0:48:210:48:23

after obtaining planning permission.

0:48:230:48:25

A new central heating system has been installed and the house rewired.

0:48:250:48:29

The dampness, which was mostly due to issues with drains, has been sorted

0:48:290:48:34

and the roof re-slated.

0:48:340:48:36

So Ali has pretty much taken on a shell and rebuilt it.

0:48:360:48:41

This was funded by the sale of her mum's former property.

0:48:410:48:44

But she does like a challenge and in the meantime took on

0:48:440:48:48

another property which is a holiday let.

0:48:480:48:50

No wonder it took a lot longer than she thought.

0:48:500:48:54

I think originally I said a year, timescale, to do the place up.

0:48:540:48:56

Obviously I'm a bit over.

0:48:560:48:58

It's about five years over.

0:48:580:49:00

Due to the fact that, well...

0:49:010:49:03

you haven't even got the money for a pot of paint,

0:49:030:49:05

never mind putting a roof on.

0:49:050:49:07

And things like planning permission take so long,

0:49:070:49:09

the money you had put aside,

0:49:090:49:11

you've used half of it to live on while you're waiting for everything happening,

0:49:110:49:15

so that didn't help.

0:49:150:49:16

So, two houses done up later,

0:49:160:49:17

I'm now working on this one full-time.

0:49:170:49:20

SHE CHUCKLES

0:49:200:49:21

I've gone over the budget a bit but not too much.

0:49:210:49:24

I originally thought about 20,000.

0:49:240:49:27

I'm only up to about 23.

0:49:270:49:28

There's not a great deal more to do

0:49:280:49:30

and the main things are done

0:49:300:49:31

and I do most of the work myself,

0:49:310:49:32

so that helps keep the cost down.

0:49:320:49:34

So far, Ali has invested a total of £89,000 here.

0:49:360:49:40

Having bought another holiday let, she now lives here full-time and has

0:49:410:49:45

no intention in selling or renting the property.

0:49:450:49:49

So it's interesting to know what kind of value she's added.

0:49:490:49:51

We asked two local estate agents for their opinion,

0:49:530:49:55

starting with the agent who saw it originally.

0:49:550:49:58

You are restricted with the confines of the property.

0:49:590:50:02

There's not a lot of land beyond the walls of the house.

0:50:020:50:05

What you've got to do is alter the footprint

0:50:050:50:08

to make it work well and make sure you don't make it top-heavy,

0:50:080:50:12

make sure you don't make bottom-heavy,

0:50:120:50:14

and it's balanced well and it flows quite well as a property.

0:50:140:50:17

First impressions of the property,

0:50:170:50:20

it's quite a nice, quirky property, quite a good size,

0:50:200:50:23

full of unique charm and character

0:50:230:50:25

and it would be really nice to see what it's like when it's finished.

0:50:250:50:29

So, let's see what it could be worth when it's finished,

0:50:290:50:31

bearing in mind that £89,000 investment so far.

0:50:310:50:35

Once the work is completed, I would expect the property to be

0:50:370:50:41

worth in the region of £140,000 to £150,000.

0:50:410:50:43

It's a difficult one at this stage, but I think done up, pristine

0:50:430:50:46

condition, showroom condition,

0:50:460:50:48

smelling like a new hotel,

0:50:480:50:50

all done and dusted and finished,

0:50:500:50:52

I think you're in the region of £150,000.

0:50:520:50:55

I'm quite pleased with those valuations, yes.

0:50:550:50:58

I bought it for 66 in the first place

0:50:580:51:00

and I spent a lot of work and a lot of time,

0:51:000:51:03

but I'm quite pleased with that, yeah.

0:51:030:51:06

That means, as it stands, Ali would make a pre-tax profit of 61,000.

0:51:060:51:11

And whilst this was initially an investment,

0:51:110:51:14

it's now a labour of love and Ali couldn't be happier.

0:51:140:51:17

I love this place. I want to be here for an awful long time,

0:51:180:51:22

as long as I can, perhaps until the day I die.

0:51:220:51:24

I visited Derby earlier in the show

0:51:310:51:34

and this property, guided at £99,000 plus,

0:51:340:51:37

was a characterful three-bed that was almost in perfect nick.

0:51:370:51:43

It's in good condition and whoever buys this house, well,

0:51:430:51:46

they could be sitting pretty.

0:51:460:51:49

# No, I'm never gonna be

0:51:490:51:50

# Cos I don't wanna be

0:51:500:51:51

# I don't wanna sit still Look pretty... #

0:51:510:51:53

Sold, it's yours and your paddle number, madam?

0:51:530:51:56

And it didn't sit still for long in the auction room.

0:51:560:51:59

Mum and son team Alison and Sam paid £121,500 for it as a joint venture

0:51:590:52:05

and they were looking to turn it into a student HMO.

0:52:050:52:09

And do you both get on?

0:52:090:52:10

-Yeah.

-We are pretty good at getting on, aren't we?

0:52:100:52:13

Yeah, we're both quite, erm...

0:52:130:52:16

What's the word? I don't want to say controlling!

0:52:170:52:20

THEY LAUGH

0:52:200:52:21

-But, yeah... You do listen to me though, don't you?

-We are both quite sort of leader-type people, so...

0:52:210:52:25

-Yeah.

-Sometimes we butt heads when we are very opinionated on something.

0:52:250:52:29

This was Sam's first financial and physical investment in a property project.

0:52:290:52:34

However, with three other properties in their portfolio,

0:52:340:52:38

he was able to rely on mum and dad's experience.

0:52:380:52:41

With a 12 grand budget, they had to get this ready for

0:52:410:52:44

the new semester and had a 12-week timescale.

0:52:440:52:49

# Sit still, look pretty... #

0:52:490:52:51

Three months later,

0:52:510:52:52

right at the cusp of the new university year, we're back.

0:52:520:52:58

MUSIC: Here To Learn by Clearlake

0:52:580:53:00

# You're here to learn

0:53:050:53:10

# You're here to learn... #

0:53:100:53:14

Well, the students might have come to Derby to learn,

0:53:170:53:21

but this house is an education in maximising space

0:53:210:53:24

and creating good-quality student digs.

0:53:240:53:27

By restoring the wall in the living room,

0:53:270:53:29

they've created a fourth bedroom AND retained the living space.

0:53:290:53:33

They've also retained the character features throughout, which I love...

0:53:340:53:37

..and added modern touches like good quality carpets and a new bathroom suite.

0:53:380:53:43

The question of the renovation is answered,

0:53:430:53:46

but now the big question - how did mum and son get on?

0:53:460:53:50

# You're here to learn... #

0:53:500:53:54

I think we've got on really well.

0:53:590:54:00

-We have.

-We have. I think we've agreed on a lot of things and when

0:54:000:54:04

-we've not agreed, we've...

-We've talked it through.

0:54:040:54:06

-Yeah, we've talked it through.

-One or two challenges.

0:54:060:54:09

Yeah. I've really enjoyed it as a whole, actually.

0:54:090:54:12

I've really enjoyed doing it and the excitement of doing something

0:54:120:54:15

different every day and it's just really rewarding

0:54:150:54:18

to do work on something and see your work pay off, I guess.

0:54:180:54:21

-Yeah.

-I think I've got the bug from you to do some in the future myself.

0:54:210:54:27

It might have been exciting for Sam

0:54:290:54:31

but this wasn't a renovation that was straightforward.

0:54:310:54:36

It's an old house.

0:54:360:54:38

There's going to be issues, going to be problems.

0:54:380:54:41

Some of the house had some bits of damp that you could see.

0:54:410:54:45

That had been rectified by putting mortar in at the end of the gable

0:54:450:54:51

in the back bedroom. We also had the flashing replaced on the chimney,

0:54:510:54:55

so now we've got new gutters

0:54:550:54:56

that should have stopped that water coming in, too.

0:54:560:54:59

Initially we only wanted to have the radiators done, didn't we?

0:54:590:55:05

But in the end, splashed out on a new boiler

0:55:050:55:08

which was an unexpected cost.

0:55:080:55:10

Contractors helped them put the roof and damp right

0:55:100:55:13

and Sam's girlfriend, Sophie, has done all the painting.

0:55:130:55:17

But all that additional work has added a little to their timescale of 12 weeks,

0:55:170:55:22

as they still have some snagging left to do.

0:55:220:55:25

Has it affected the 12 grand budget though?

0:55:250:55:28

We think on the renovation that we spent about 15, don't we?

0:55:280:55:32

-We do.

-But that's excluding furnishing for

0:55:320:55:35

the tenants to move in, which is obviously...

0:55:350:55:38

-..a little bit more than that.

-Yes, yes.

0:55:400:55:42

While the students can look forward to new surroundings,

0:55:440:55:47

Sam's looking to the job market, as he's recently graduated.

0:55:470:55:50

I am still job searching, I may be...

0:55:520:55:55

I was looking at the music industry but I'm actually...

0:55:550:55:58

I've enjoyed this so much that I'd quite like to look at certain things in this industry as well.

0:55:580:56:03

And in the future, I definitely want to have some buy-to-lets for myself

0:56:030:56:06

and I'll continue to help Mum and Dad with theirs

0:56:060:56:09

whenever they need me.

0:56:090:56:10

Congratulations, Sam, and good luck with the job hunt.

0:56:130:56:16

And good luck to both Alison and Sam with their estate agent valuations.

0:56:160:56:21

Let's start with the thoughts of the agent who saw it before renovation.

0:56:210:56:25

Arriving here today, it's a huge transformation with what they've

0:56:260:56:30

done to the property,

0:56:300:56:31

in the upgrade that they've done to the kitchen and the ground floor

0:56:310:56:35

accommodating another bedroom.

0:56:350:56:38

Having looked around the property,

0:56:380:56:39

I think it's in a reasonable condition.

0:56:390:56:41

It's been done to a standard which is perfect for rental,

0:56:410:56:44

be that student or normal residential.

0:56:440:56:46

Layout works well with the separation of this room

0:56:460:56:50

to produce a bedroom rather than a lounge,

0:56:500:56:54

maximising the rental income.

0:56:540:56:56

Alison and Sam spent £136,500 buying and renovating this property.

0:56:570:57:05

They'll be keen to know the monthly rental for all four rooms let out.

0:57:050:57:10

Rental value for a student HMO let would be around

0:57:100:57:13

£1,300 per calendar month.

0:57:130:57:15

In the current marketplace, we have tenants lined up

0:57:150:57:19

for this property at £1,200 per calendar month.

0:57:190:57:23

We thought we were doing really well

0:57:230:57:26

with getting four rooms rented, so actually,

0:57:260:57:30

maybe next year, we'll have to put the prices up a bit!

0:57:300:57:33

They've achieved £1,200 per calendar month for nine months of the year

0:57:350:57:41

and that gives them a yield of 8%.

0:57:410:57:44

So would they recommend property development to other people?

0:57:440:57:47

It's a bit of an adventure.

0:57:500:57:52

Yeah, it's good fun.

0:57:520:57:54

There's no denying it.

0:57:570:57:59

Most property projects we see on the show do provide testing times

0:57:590:58:03

for our developers.

0:58:030:58:04

Yes, but there are rich rewards if you get it right.

0:58:040:58:07

Yeah, we'll have plenty more stories for you next time

0:58:070:58:10

on Homes Under The Hammer.

0:58:100:58:11

-Bye-bye.

-Bye-bye.

0:58:110:58:13

A terraced house in Haslington near Crewe, a quirky house next to a cemetery in Maryport in Cumbria and a terrace in near perfect condition with original features in Derby are sold under the hammer. Martin, Dion and Martel meet the new owners and hear their plans to make a return on their investments.