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Hello, and welcome to the show. Now, investing in property | 0:00:02 | 0:00:04 | |
does come with its risks, but if you get it right, | 0:00:04 | 0:00:08 | |
it has been shown to be a proven way to make money. | 0:00:08 | 0:00:11 | |
Yes. If you do your research, it will increase your chances of making that | 0:00:11 | 0:00:14 | |
right decision with your dough. | 0:00:14 | 0:00:16 | |
So, why not get a handle on things and head down to your local | 0:00:16 | 0:00:19 | |
property auction? | 0:00:19 | 0:00:22 | |
Now, for those who are more experienced, | 0:00:47 | 0:00:49 | |
they know that property auctions can be a happy hunting ground. | 0:00:49 | 0:00:52 | |
Yeah, and for those that are not so experienced, | 0:00:52 | 0:00:54 | |
-let's hope that's something they'll learn along the way. -Yes. | 0:00:54 | 0:00:57 | |
So what did today's property buyers lay their hands on? | 0:00:57 | 0:01:00 | |
Let's find out. | 0:01:00 | 0:01:03 | |
In Epsom, I'm getting hands on in a flat where the renovations can't start | 0:01:03 | 0:01:07 | |
soon enough. | 0:01:07 | 0:01:09 | |
It needs...just helping them get started. | 0:01:09 | 0:01:11 | |
In this Cornish bungalow, | 0:01:13 | 0:01:15 | |
there's an issue that has me at breaking point. | 0:01:15 | 0:01:18 | |
As has some of the floor. That is not good at all. | 0:01:18 | 0:01:22 | |
And in Wolverhampton, | 0:01:23 | 0:01:25 | |
this house has a mystery that has me knocking for answers. | 0:01:25 | 0:01:28 | |
What is that hiding? | 0:01:30 | 0:01:32 | |
All these properties have been sold at auction, | 0:01:35 | 0:01:37 | |
and we'll find out who bought them and what they paid when they went | 0:01:37 | 0:01:40 | |
under the hammer. | 0:01:40 | 0:01:42 | |
Thank you. | 0:01:42 | 0:01:44 | |
This is Epsom, in Surrey, which lies at the foot of the North Downs, | 0:01:45 | 0:01:49 | |
about 15 miles from London. | 0:01:49 | 0:01:52 | |
Epsom was once a spa town, | 0:01:52 | 0:01:54 | |
famous for its magnesium sulphate rich water, | 0:01:54 | 0:01:57 | |
which came to be known as Epsom salts. | 0:01:57 | 0:02:00 | |
During the spa period, horse racing on the Downs was a big attraction | 0:02:00 | 0:02:04 | |
and continues to this day, | 0:02:04 | 0:02:06 | |
with Epsom Racecourse hosting the famous derby. | 0:02:06 | 0:02:10 | |
So will the property I'm here to see go the distance and be a sure bet? | 0:02:10 | 0:02:14 | |
Or will it be off the pace and a bit lame? | 0:02:14 | 0:02:17 | |
I'm around a mile from the centre of Epsom, | 0:02:23 | 0:02:25 | |
which has its own train station. | 0:02:25 | 0:02:27 | |
This is the A24, and it's only a short drive to access the M25. | 0:02:27 | 0:02:33 | |
So this really is a great location for a commute into London. | 0:02:33 | 0:02:37 | |
The property I'm here to see, it's in this building here. | 0:02:37 | 0:02:40 | |
It's a first floor, two-bedroom flat | 0:02:40 | 0:02:42 | |
with a guide price of £150,000 plus. | 0:02:42 | 0:02:46 | |
Let's go look. | 0:02:46 | 0:02:47 | |
First impressions, the foyer is in good nick. | 0:02:54 | 0:02:57 | |
I'm wondering about any communal cleaning charges that might apply here. | 0:02:57 | 0:03:01 | |
OK. Inside, small hall area. | 0:03:03 | 0:03:06 | |
Someone's used it to hang up their coats. | 0:03:06 | 0:03:08 | |
On this side, some interesting rooms going on, and I'll come back to that in a minute. | 0:03:08 | 0:03:12 | |
But first of all, this side of the flat. | 0:03:12 | 0:03:14 | |
So, a really nicely-sized reception area, good proportions. | 0:03:14 | 0:03:20 | |
And then you have your kitchen, which is dated. | 0:03:20 | 0:03:23 | |
Could do with coming out. | 0:03:23 | 0:03:25 | |
It's separate from your reception room. | 0:03:25 | 0:03:27 | |
It's quite fashionable to have things open-plan, | 0:03:27 | 0:03:29 | |
but it might not work in this flat. | 0:03:29 | 0:03:31 | |
It's not always the solution. | 0:03:31 | 0:03:33 | |
And then a small, pretty poky bedroom. I'd say that's a single bedroom, | 0:03:33 | 0:03:39 | |
pushing it to call it a double. | 0:03:39 | 0:03:41 | |
But this size here is great. | 0:03:41 | 0:03:43 | |
You've got your central heating, double glazing, you know, it's unloved. | 0:03:43 | 0:03:48 | |
It needs...just helping them get started. | 0:03:48 | 0:03:51 | |
It needs a lot of TLC. | 0:03:51 | 0:03:54 | |
Over in the corner here, I've sort of spotted a bit of a damp issue. | 0:03:54 | 0:03:57 | |
Now, it may be as superficial as mildew. This place hasn't been lived in for a while. | 0:03:57 | 0:04:02 | |
That could be the issue. | 0:04:02 | 0:04:04 | |
Or it could be something more fundamentally wrong. | 0:04:04 | 0:04:07 | |
It could be something to do with the guttering. | 0:04:07 | 0:04:09 | |
But you need investigating that to find out what the issue is. | 0:04:09 | 0:04:12 | |
But, all in all, this flat, well, so far, so good. | 0:04:12 | 0:04:15 | |
# So far so good So don't turn back | 0:04:16 | 0:04:19 | |
# So far so good | 0:04:19 | 0:04:21 | |
# It's been hard Tryin' to find the best of it... # | 0:04:21 | 0:04:26 | |
The bathroom, well, you can see it's what it is. It needs taking out. | 0:04:32 | 0:04:36 | |
It's an OK space. You don't have enough room for a second shower and bath. | 0:04:36 | 0:04:40 | |
The shower would have to be in the bath, | 0:04:40 | 0:04:41 | |
but it serves the size of this flat pretty well. | 0:04:41 | 0:04:46 | |
Back into the hall, and this room, to this side of the flat is... | 0:04:46 | 0:04:49 | |
Now, this is a nice-sized double bedroom. | 0:04:49 | 0:04:53 | |
Whoever lived here liked mirrors, | 0:04:53 | 0:04:54 | |
and you've got your fitted wardrobes, | 0:04:54 | 0:04:56 | |
which dates the place slightly, but, | 0:04:56 | 0:04:58 | |
you know, it's also a great use of space. | 0:04:58 | 0:05:00 | |
Your fitted wardrobes are fully with mirrors, | 0:05:00 | 0:05:04 | |
almost from the floor to the ceiling. It reminds me of, you know, | 0:05:04 | 0:05:07 | |
getting your legwarmers on, having a wee dance practice. | 0:05:07 | 0:05:09 | |
It's like a dance studio of your own. You could do a few moves. | 0:05:09 | 0:05:13 | |
So, as we say in Scotland, I think this flat is a bit of a wee dancer! | 0:05:13 | 0:05:17 | |
As you can tell, I think this is a great wee flat, | 0:05:31 | 0:05:33 | |
but will a local estate agent | 0:05:33 | 0:05:35 | |
make as much of a song and dance about it? | 0:05:35 | 0:05:38 | |
Let's see what he thought of the property guided at £150,000 plus. | 0:05:38 | 0:05:43 | |
So, first impressions of the property... | 0:05:45 | 0:05:47 | |
It's very sizeable, got generous rooms throughout. | 0:05:47 | 0:05:49 | |
Does need some modernisation, though. | 0:05:49 | 0:05:50 | |
It's going to need probably... redecorating throughout, plus a new | 0:05:50 | 0:05:53 | |
kitchen and a new bathroom to get it to the kind of level where you would | 0:05:53 | 0:05:56 | |
expect to be able then to sell it. | 0:05:56 | 0:05:58 | |
So, once the flat is ready for the sales market, | 0:05:58 | 0:06:01 | |
how much could you be looking at? | 0:06:01 | 0:06:03 | |
So, when the property is completed, we would expect it | 0:06:05 | 0:06:07 | |
to fetch anywhere between sort of 340 to £350,000. | 0:06:07 | 0:06:11 | |
What about holding on to it as a long-term let? | 0:06:11 | 0:06:15 | |
So, when the property is completed, we would expect it to bring in anywhere | 0:06:15 | 0:06:18 | |
between 1,100 to £1,200 per calendar month. | 0:06:18 | 0:06:21 | |
This flat, it's got a lot going for it. | 0:06:22 | 0:06:24 | |
Those two bedrooms, a great location, and a good guide price. | 0:06:24 | 0:06:29 | |
So I'd expect there to be a lot of interest. | 0:06:29 | 0:06:32 | |
Let's find out if that was the case when it went under the hammer. | 0:06:32 | 0:06:36 | |
First floor flat. | 0:06:36 | 0:06:38 | |
Not far from Epsom town centre. | 0:06:38 | 0:06:40 | |
Kick-off at 150, go upwards from there. | 0:06:40 | 0:06:44 | |
Who would like to start? 150 with you? | 0:06:44 | 0:06:46 | |
150, 155 in front. | 0:06:46 | 0:06:49 | |
160. 165. | 0:06:49 | 0:06:52 | |
170. 175. 180. | 0:06:52 | 0:06:57 | |
The bids were steady, | 0:06:57 | 0:06:58 | |
then dropped to increments of £2,000 as interest slowed. | 0:06:58 | 0:07:03 | |
We rejoin with the auctioneer looking for £224,000. | 0:07:03 | 0:07:07 | |
224, well done. | 0:07:07 | 0:07:09 | |
226. 228. 228, 230. | 0:07:09 | 0:07:15 | |
Crunch bid. This one is a crunch one, 232. | 0:07:15 | 0:07:19 | |
232. Yeah? | 0:07:19 | 0:07:22 | |
Yes, no, I want you to be in unison. | 0:07:22 | 0:07:24 | |
No arguments. | 0:07:24 | 0:07:26 | |
230 with you. | 0:07:26 | 0:07:27 | |
232, elsewhere. | 0:07:27 | 0:07:29 | |
If not, 230. | 0:07:29 | 0:07:31 | |
First time, second time, third and last time... | 0:07:31 | 0:07:35 | |
Sold, 230. | 0:07:37 | 0:07:38 | |
Hidden from our camera's view on the day were Rika and Alan, who bought | 0:07:40 | 0:07:44 | |
the flat for £230,000, | 0:07:44 | 0:07:47 | |
but I made sure to catch up with them and hear all about the new plans | 0:07:47 | 0:07:51 | |
whilst son Sven checked out the rest of the flat. | 0:07:51 | 0:07:55 | |
Rika. Pleased to meet you. | 0:07:55 | 0:07:56 | |
-Pleased to meet you. -Alan. | 0:07:56 | 0:07:58 | |
-Pleased to meet you. -So, congratulations. | 0:07:58 | 0:08:00 | |
-Thank you very much. -You've got yourself a flat. | 0:08:00 | 0:08:02 | |
-Is this a first? -It's not the first. | 0:08:02 | 0:08:04 | |
It's not the first, no. | 0:08:04 | 0:08:05 | |
We've been in the game for a number of years. | 0:08:05 | 0:08:08 | |
About 15, 16 years so far. | 0:08:08 | 0:08:10 | |
We have about 20 properties, at the moment, which we manage and let out. | 0:08:10 | 0:08:16 | |
I have to ask firstly, where's the accent from? | 0:08:16 | 0:08:18 | |
-It's a lovely accent. -From Croatia, yeah. | 0:08:18 | 0:08:21 | |
Mine is much stronger than my wife's, obviously. | 0:08:21 | 0:08:23 | |
We've been here for a number of years, around 20 years. | 0:08:23 | 0:08:28 | |
You're seasoned property buyers. Did you do all the right things? | 0:08:28 | 0:08:31 | |
You came to view it? You read the legal pack? | 0:08:31 | 0:08:34 | |
Yes. We... I viewed it, but it was a very quick viewing. | 0:08:34 | 0:08:37 | |
We checked out the legal pack. We did everything we could, but still, | 0:08:37 | 0:08:42 | |
it's not always enough. | 0:08:42 | 0:08:43 | |
So was there any hidden nasties with this property? | 0:08:43 | 0:08:46 | |
There is actually one thing, | 0:08:46 | 0:08:48 | |
and that's that the property hasn't got planning permission, | 0:08:48 | 0:08:51 | |
which basically means that this property is not | 0:08:51 | 0:08:55 | |
a flat recognised by the council. | 0:08:55 | 0:08:57 | |
So whoever owns the freehold here carved it up, but never got permission? | 0:08:57 | 0:09:00 | |
That's correct, yes. | 0:09:00 | 0:09:02 | |
They didn't ask for retrospective planning permission, | 0:09:02 | 0:09:05 | |
so we are going to do that. We would like to make sure that all the | 0:09:05 | 0:09:08 | |
paperwork is correct. | 0:09:08 | 0:09:10 | |
What will you do if you don't get planning permission? | 0:09:10 | 0:09:14 | |
There is a certificate of lawfulness, that for a residential property, | 0:09:14 | 0:09:17 | |
if we can prove that the property has been used as a dwelling, | 0:09:17 | 0:09:21 | |
as this one, for four or more years, that you will get retrospective, | 0:09:21 | 0:09:26 | |
sort of, either planning consent or a certificate of lawfulness, | 0:09:26 | 0:09:30 | |
and that will sort the whole matter out. | 0:09:30 | 0:09:33 | |
Ouch! Just goes to show that even the most consummate professionals can get | 0:09:36 | 0:09:40 | |
their fingers burned. | 0:09:40 | 0:09:42 | |
Fortunately, Rika and Alan have that evidence the flat has been used as a | 0:09:42 | 0:09:46 | |
dwelling in the form of EPC certificates and council tax bills. | 0:09:46 | 0:09:51 | |
But if they can't get the certificate they need, | 0:09:51 | 0:09:54 | |
they will put it back on the market. | 0:09:54 | 0:09:55 | |
However, if they do, they'll start the renovations. | 0:09:55 | 0:09:59 | |
We will probably do everything. We'll put in a new kitchen, new bathroom, | 0:09:59 | 0:10:04 | |
new boiler. | 0:10:04 | 0:10:05 | |
New floors, get rid of the wallpaper. | 0:10:05 | 0:10:09 | |
The second bedroom is a bit small, so we're planning to | 0:10:09 | 0:10:12 | |
bring it out a little bit. | 0:10:12 | 0:10:16 | |
And take a little bit away from the reception. | 0:10:16 | 0:10:19 | |
The reception is very big. | 0:10:19 | 0:10:20 | |
So it'll still remain a really good size, | 0:10:20 | 0:10:24 | |
and the bedroom will be extended by about a metre. | 0:10:24 | 0:10:28 | |
The door into the bedroom won't be off the reception room, | 0:10:28 | 0:10:31 | |
but off the little hallway which we're going to create. | 0:10:31 | 0:10:35 | |
That's the only sort of structural change we're hoping to do. | 0:10:35 | 0:10:38 | |
But we have to get the permission of the freeholder first. | 0:10:38 | 0:10:41 | |
What's your budget to carry out all the work? | 0:10:41 | 0:10:43 | |
It's going to be around £20,000, | 0:10:43 | 0:10:45 | |
because, initially, we didn't think of bringing that wall out. | 0:10:45 | 0:10:50 | |
Although, this is not an extremely expensive exercise, | 0:10:51 | 0:10:55 | |
but it will carry some sort of cost. | 0:10:55 | 0:10:58 | |
Yeah, £20,000 plus, you know, let's say £2,000 for a contingency. | 0:10:58 | 0:11:03 | |
What's your timescale? | 0:11:03 | 0:11:04 | |
We have a holiday to go to. | 0:11:04 | 0:11:07 | |
We need a bit of a holiday. | 0:11:08 | 0:11:11 | |
-So, maybe... -Most of the builders are on holiday as well, so | 0:11:11 | 0:11:13 | |
I would say probably eight to ten weeks, in total, | 0:11:13 | 0:11:17 | |
that everything should be finished. | 0:11:17 | 0:11:19 | |
Once the renovation's complete, Rika and Alan plan to sell the property on, | 0:11:21 | 0:11:26 | |
but if they can't get the right price, they'll hold on to it | 0:11:26 | 0:11:29 | |
and add it to their rental portfolio. | 0:11:29 | 0:11:32 | |
Only time will tell. Best get on with the work | 0:11:32 | 0:11:35 | |
which they'll be project managing. | 0:11:35 | 0:11:36 | |
But, will son, Sven, be roped in too? | 0:11:36 | 0:11:39 | |
He would like to get involved and help out as much as he can. | 0:11:39 | 0:11:43 | |
He can clear out the rubbish and that sort of stuff, | 0:11:43 | 0:11:46 | |
and help us bring the staging goods in, and, yeah, | 0:11:46 | 0:11:50 | |
he looks forward to it as well. | 0:11:50 | 0:11:51 | |
And go to the skip! | 0:11:51 | 0:11:53 | |
I feel for Sven's sake we should commit to it on camera - | 0:11:53 | 0:11:55 | |
is this free labour, or is he getting good pocket money? | 0:11:55 | 0:11:58 | |
-There is going to be some pocket money, of course. -Definitely. | 0:11:58 | 0:12:01 | |
-Now he can't get out of it. -Yeah! -No! | 0:12:01 | 0:12:04 | |
Best of luck, and I can't wait to see the results. | 0:12:04 | 0:12:06 | |
-Thanks, Rika. -Thank you, Martel. | 0:12:06 | 0:12:08 | |
-Good luck, Alan. -Thank you very much. | 0:12:08 | 0:12:12 | |
I've got no doubt Rika and Alan will do a fantastic job | 0:12:12 | 0:12:15 | |
on refurbing this property. | 0:12:15 | 0:12:17 | |
But it just goes to show that, even if you do read that legal pack, | 0:12:17 | 0:12:20 | |
there can be hidden nasties. | 0:12:20 | 0:12:21 | |
It's always worth getting a solicitor to check over, and | 0:12:21 | 0:12:24 | |
hopefully they do sort that lack of planning permission. | 0:12:24 | 0:12:27 | |
You can find out what does happen later in the show. | 0:12:27 | 0:12:29 | |
I'm in the village of Ashton in Cornwall, | 0:12:36 | 0:12:39 | |
only a mile from the coast, | 0:12:39 | 0:12:41 | |
perfect for those looking for a more rural lifestyle. | 0:12:41 | 0:12:43 | |
Well, unfortunately, | 0:12:45 | 0:12:47 | |
the property that was up for auction isn't quite as rurally situated as | 0:12:47 | 0:12:51 | |
you might like, because it's right by the side of this very busy main road. | 0:12:51 | 0:12:56 | |
But, the house itself, not bad. | 0:12:56 | 0:12:59 | |
It's a bungalow. Guide price was 150 to £175,000, | 0:12:59 | 0:13:03 | |
which, when I tell you it's actually got five bedrooms, | 0:13:03 | 0:13:07 | |
not the two or three you might expect, suddenly | 0:13:07 | 0:13:09 | |
sounding quite interesting. | 0:13:09 | 0:13:12 | |
So, straight into the kitchen, which is in reasonable condition, | 0:13:16 | 0:13:21 | |
with a slight glint towards sauna on the roof there. | 0:13:21 | 0:13:25 | |
But...layout, it's a bit odd. | 0:13:25 | 0:13:28 | |
Straight from the kitchen there into this long corridor here | 0:13:28 | 0:13:31 | |
with bedrooms going off it, and then through into this room, | 0:13:31 | 0:13:34 | |
where you've got this range cooker thing going on. | 0:13:34 | 0:13:37 | |
Cladding on the walls. | 0:13:37 | 0:13:38 | |
I mean, straightaway, it's this kind of mishmash of styles, | 0:13:38 | 0:13:42 | |
fabrics, coverings, materials. | 0:13:42 | 0:13:44 | |
It's this little rabbit warren that's really difficult to get your head around. | 0:13:45 | 0:13:50 | |
# Run, rabbit, run | 0:13:50 | 0:13:51 | |
# As fast as you can... # | 0:13:51 | 0:13:55 | |
Back here in a lean-to extension is a downstairs bathroom. | 0:13:55 | 0:14:00 | |
Not my ideal place for it, | 0:14:00 | 0:14:02 | |
but it means living accommodation across the ground floor, | 0:14:02 | 0:14:05 | |
a key selling point to a bungalow. | 0:14:05 | 0:14:07 | |
This one has already been extended up into the roof space, | 0:14:09 | 0:14:13 | |
and offers pretty decent head height | 0:14:13 | 0:14:16 | |
as well as another bathroom. | 0:14:16 | 0:14:18 | |
And down the hall, three more bedrooms, which are a bit small, | 0:14:20 | 0:14:25 | |
but perfectly usable. | 0:14:25 | 0:14:27 | |
So far, so good. | 0:14:31 | 0:14:34 | |
Ah! | 0:14:34 | 0:14:35 | |
Famous last words. So, in one of the bedrooms here... | 0:14:35 | 0:14:40 | |
I presume it's a bedroom. | 0:14:40 | 0:14:43 | |
Clearly a bit of an issue. | 0:14:44 | 0:14:47 | |
The joists which support the floor have completely rotted away, | 0:14:47 | 0:14:51 | |
as has some of the floor. That is not good at all. | 0:14:51 | 0:14:55 | |
So, what's caused that? It's damp of some sort. | 0:14:55 | 0:14:58 | |
What's going on? Now, there's an air brick there, | 0:14:58 | 0:15:01 | |
that feels to me like that has been blocked up. | 0:15:01 | 0:15:05 | |
Now, the idea of those air bricks is that they allow a flow of | 0:15:05 | 0:15:08 | |
air underneath the floor. | 0:15:08 | 0:15:10 | |
That's what you need in houses, lots of air flow. Gets rid of the damp, | 0:15:10 | 0:15:13 | |
it stops stagnation, etc, etc. | 0:15:13 | 0:15:15 | |
And any water that gets in there can be, basically, | 0:15:15 | 0:15:18 | |
got rid of by that airflow. | 0:15:18 | 0:15:19 | |
If they're blocked up... And it's a really easy thing to do. | 0:15:19 | 0:15:22 | |
Maybe somebody's painting or cementing outside the house. | 0:15:22 | 0:15:24 | |
You don't have that airflow, this is exactly what happens. | 0:15:24 | 0:15:28 | |
So, first thing here, sort out the air flow, second thing, | 0:15:28 | 0:15:31 | |
get somebody in to replace all these joists, and that's going to be expensive. | 0:15:31 | 0:15:37 | |
# Do you think I am made of stone? | 0:15:37 | 0:15:42 | |
# Cold and unfeeling. # | 0:15:43 | 0:15:47 | |
One big bonus is this nice garden, but with every up | 0:15:47 | 0:15:51 | |
seems to come a down. | 0:15:51 | 0:15:55 | |
Here's a design idea. | 0:15:55 | 0:15:58 | |
Why not convert your rainwater goods into a garden water feature? | 0:15:58 | 0:16:02 | |
Yes, the house set back in this garden does look quite appealing, | 0:16:09 | 0:16:14 | |
but the gutters really need down pipes installed, | 0:16:14 | 0:16:16 | |
with proper drainage to avoid any issues with damp. | 0:16:16 | 0:16:20 | |
And there's another thing to make me feel a bit broken-hearted about this house. | 0:16:20 | 0:16:25 | |
Well, one potentially problematic legacy | 0:16:27 | 0:16:31 | |
of the Cornish mining industry is that a lot of the mining residue | 0:16:31 | 0:16:37 | |
was used in the construction of the properties here. | 0:16:37 | 0:16:41 | |
Now, when you are buying properties in certain areas of Cornwall, | 0:16:41 | 0:16:44 | |
what you will be required to do is actually have some kind of a test. | 0:16:44 | 0:16:47 | |
It means drilling into the block of the construction, | 0:16:47 | 0:16:50 | |
maybe the foundations, and finding out what it's made of. | 0:16:50 | 0:16:52 | |
This property has had one of those tests, here, for instance, | 0:16:52 | 0:16:56 | |
and in other areas. | 0:16:56 | 0:16:58 | |
Bad news, furnace ash, basically, the ash from these furnaces, | 0:16:58 | 0:17:03 | |
was used in the construction of some of blocks. | 0:17:03 | 0:17:05 | |
And that is considered a potential problem, and it basically, | 0:17:05 | 0:17:08 | |
to cut a very long story short, | 0:17:08 | 0:17:11 | |
means the house is probably unmortgageable. | 0:17:11 | 0:17:13 | |
Furnace ash, or black ash, like other similar materials | 0:17:15 | 0:17:18 | |
can lead to damage due to chemical reactions over time. | 0:17:18 | 0:17:22 | |
It appears mostly on properties built between the war and | 0:17:22 | 0:17:25 | |
the 1960s, but, of course, | 0:17:25 | 0:17:27 | |
many people occupy houses like this without too much concern. | 0:17:27 | 0:17:31 | |
And if you need to make the property mortgageable, you can fix the | 0:17:32 | 0:17:35 | |
problem. The cost? Well, that would depend on how severe the problem is. | 0:17:35 | 0:17:40 | |
And if that issue was sorted, what other changes could be made here? | 0:17:42 | 0:17:46 | |
Well, I've asked along a local estate agent for her opinion | 0:17:46 | 0:17:49 | |
on this bungalow. | 0:17:49 | 0:17:51 | |
The bungalow itself is a really, really good size. | 0:17:53 | 0:17:55 | |
Quite deceiving from the outside. | 0:17:55 | 0:17:57 | |
Upstairs, I think it would benefit from maybe knocking a couple of | 0:17:57 | 0:18:00 | |
rooms into one, so you have a small amount of bedrooms, but larger. | 0:18:00 | 0:18:04 | |
It needs updating inside. | 0:18:04 | 0:18:06 | |
But I think it could be really, really nice | 0:18:06 | 0:18:08 | |
once someone spend some money on it. | 0:18:08 | 0:18:11 | |
So if the cash was splashed, just what kind of return | 0:18:11 | 0:18:14 | |
could you expect on this bungalow, guided at 150 to £175,000? | 0:18:14 | 0:18:19 | |
I think someone who bought this property, if they completely renovated it throughout | 0:18:21 | 0:18:24 | |
to a really good standard and made it into a nice-sized | 0:18:24 | 0:18:26 | |
four-bedroom, rather than a small five-bedroom, | 0:18:26 | 0:18:29 | |
I think you could achieve around the 175 to £200,000 mark. | 0:18:29 | 0:18:33 | |
That sounds like an OK return on doing the cosmetic work. | 0:18:33 | 0:18:36 | |
But what kind of impact would sorting the ash in the construction have on the property value? | 0:18:36 | 0:18:42 | |
If the person who bought the property was to rectify the wall issue and | 0:18:42 | 0:18:46 | |
make it mortgageable, you're probably looking in the region of | 0:18:46 | 0:18:49 | |
sort of 225 or £250,000. | 0:18:49 | 0:18:52 | |
There are some significant issues with this place | 0:18:56 | 0:18:58 | |
that whoever bought it needed to know about before they actually put | 0:18:58 | 0:19:03 | |
their hand in the air. Let's find out who that was, | 0:19:03 | 0:19:05 | |
when it went under the hammer. | 0:19:05 | 0:19:08 | |
And this is the property in Cornwall. | 0:19:08 | 0:19:10 | |
It's a detached five-bedroom property, | 0:19:10 | 0:19:13 | |
dormer bungalow with garden and garage. | 0:19:13 | 0:19:15 | |
Somebody like to start off in the room here? Anywhere you like. | 0:19:15 | 0:19:18 | |
Somewhere in the middle of the guide price would be great. 150, 160, | 0:19:18 | 0:19:21 | |
whatever you like. In your hands. | 0:19:21 | 0:19:23 | |
Anyone like to have a bid on this at 160? | 0:19:23 | 0:19:25 | |
Thank you, 160. 65, somewhere else, if I can? | 0:19:25 | 0:19:28 | |
We have 160 seated. | 0:19:28 | 0:19:30 | |
165 now? | 0:19:30 | 0:19:31 | |
165 here at the front. | 0:19:31 | 0:19:33 | |
170. 175? | 0:19:33 | 0:19:37 | |
No? At £170,000, we call it for the first time. | 0:19:38 | 0:19:41 | |
At 170. | 0:19:41 | 0:19:43 | |
Second time at 170. 175 now? | 0:19:43 | 0:19:46 | |
£175,000 against you now. | 0:19:46 | 0:19:49 | |
Or anywhere else in the room. | 0:19:49 | 0:19:50 | |
I'll call it for the first time, let's be quite clear, 175 here. | 0:19:50 | 0:19:54 | |
Second time at 175,000. | 0:19:54 | 0:19:57 | |
Are you sure you're done? Third and last time at £175,000. | 0:19:57 | 0:20:02 | |
Yours at 175. Thank you very much. | 0:20:04 | 0:20:06 | |
The successful bid was made by Bernard. | 0:20:06 | 0:20:08 | |
He's semi-retired, and used to live and work in Orpington, Kent, | 0:20:10 | 0:20:15 | |
which is a fair trek away. | 0:20:15 | 0:20:18 | |
So I was keen to find out why he spent £175,000 on this bungalow. | 0:20:18 | 0:20:23 | |
-Bernard, great to meet you. -Hi. -Congratulations. | 0:20:24 | 0:20:27 | |
Tell me why you wanted to buy this place? | 0:20:27 | 0:20:30 | |
Well, firstly, I was looking for a house in the area to be near my | 0:20:30 | 0:20:34 | |
relatives - my brother and people who live down here. | 0:20:34 | 0:20:36 | |
So I was looking for a property in the area. | 0:20:36 | 0:20:38 | |
And this actually became... When I saw it the first time, I thought, | 0:20:38 | 0:20:44 | |
"Oh, I like the look of that one." | 0:20:44 | 0:20:46 | |
And then, of course, I found it was going up for auction, so... | 0:20:46 | 0:20:51 | |
..well, went there and had a go, and here we are. | 0:20:51 | 0:20:53 | |
So, the house, though... Let's say what are we going to do to it. | 0:20:53 | 0:20:57 | |
Right, well, obviously there are a few issues. That's the reason | 0:20:57 | 0:21:01 | |
why it came up for auction. | 0:21:01 | 0:21:02 | |
There was, at some point, when they did the... They did various... | 0:21:02 | 0:21:07 | |
..drilled various holes around to check the concrete, the base, | 0:21:07 | 0:21:10 | |
and everything else. And there seems to be one of them which failed | 0:21:10 | 0:21:14 | |
at the front, | 0:21:14 | 0:21:15 | |
but I thought the issues here were not great enough to be of a major | 0:21:15 | 0:21:21 | |
problem. I thought it's something that can be easily fixed. | 0:21:21 | 0:21:24 | |
It's just a question of how much the property is going to cost, | 0:21:24 | 0:21:28 | |
and how much I'd go to. | 0:21:28 | 0:21:30 | |
But it seems to me that there was enough here that was viable, | 0:21:30 | 0:21:34 | |
that I'd think, "No, this is OK." | 0:21:34 | 0:21:36 | |
And also, I could move into it, live in it now | 0:21:36 | 0:21:39 | |
if I really wanted to, without doing anything. | 0:21:39 | 0:21:42 | |
But, presumably, it limited your options for finance? | 0:21:42 | 0:21:45 | |
Yes, the main thing is dealing with | 0:21:45 | 0:21:49 | |
the essential problem that's there. | 0:21:49 | 0:21:51 | |
And get it back to a point where it is mortgageable again. | 0:21:51 | 0:21:55 | |
I think the fundamental things, I can do something about now, | 0:21:55 | 0:22:00 | |
like blocking up the air vents underneath the house and everything, | 0:22:00 | 0:22:03 | |
no airflow. | 0:22:03 | 0:22:06 | |
The first thing I did when I got here was to break them all open to let | 0:22:06 | 0:22:10 | |
the air get back under the house. | 0:22:10 | 0:22:11 | |
-Good call. -It's been drying out quite nicely since I've opened it all up. | 0:22:11 | 0:22:16 | |
Simple solutions! What about sorting out | 0:22:16 | 0:22:20 | |
the problems with the stonework? What's the steps for that? | 0:22:20 | 0:22:22 | |
Right, well, as far as the foundation goes, that needs to be a point where, | 0:22:22 | 0:22:28 | |
until we do a little dig down there to find out, well, what's the issue | 0:22:28 | 0:22:32 | |
with it, it might just need digging out and refilling. | 0:22:32 | 0:22:36 | |
I've already looked at things about the possible drainage issues, | 0:22:36 | 0:22:40 | |
because all the water has to run away from the house. | 0:22:40 | 0:22:43 | |
Well, it is, to a certain extent, | 0:22:43 | 0:22:45 | |
but it wasn't helping if you had no downpipes, or missing, | 0:22:45 | 0:22:49 | |
and water flushing straight into the walls of the house. | 0:22:49 | 0:22:52 | |
So, they're an easy fix. | 0:22:52 | 0:22:55 | |
So, what about, those are the big things, | 0:22:55 | 0:22:58 | |
what about the internal bits that you...? | 0:22:58 | 0:23:01 | |
Internally, yeah, it needs a bit of a face-lift, really. | 0:23:01 | 0:23:05 | |
The first issues will be having the floors, having it repainted, | 0:23:05 | 0:23:10 | |
doing a few other bits and pieces around the place to sort that out | 0:23:10 | 0:23:14 | |
and make it tidy. The double glazing, | 0:23:14 | 0:23:16 | |
there's condensation gone down the inside, so that all need to be... | 0:23:16 | 0:23:21 | |
..sorted out. | 0:23:21 | 0:23:23 | |
And then, of course, just trying to make it, | 0:23:23 | 0:23:26 | |
trying to put some of me into it. | 0:23:26 | 0:23:28 | |
So what's the budget for all the work you've got planned? | 0:23:28 | 0:23:30 | |
Well, I'm thinking roughly may be about 25,000. | 0:23:30 | 0:23:34 | |
To do a half decent job on it. | 0:23:35 | 0:23:38 | |
But then, I don't know, it could come out less than that. | 0:23:38 | 0:23:41 | |
But I doubt that it'll come out more. | 0:23:41 | 0:23:43 | |
-What about a timescale? -Erm... | 0:23:43 | 0:23:46 | |
I hadn't set a timescale. | 0:23:46 | 0:23:47 | |
I thought, "Yes, I'll do this gradually over a year." | 0:23:47 | 0:23:51 | |
-Essential things. -Living in it at the same time? | 0:23:51 | 0:23:53 | |
Yeah. But... | 0:23:53 | 0:23:55 | |
..the major issues, get those done early on, | 0:23:56 | 0:24:00 | |
so I'm going to take things one step at a time. | 0:24:00 | 0:24:02 | |
Sounds good. | 0:24:02 | 0:24:04 | |
And then move in, which is great. | 0:24:04 | 0:24:05 | |
Well, congratulations, and good luck with it. | 0:24:05 | 0:24:07 | |
-We look forward to seeing how you get on. -Yes. OK. | 0:24:07 | 0:24:10 | |
Well, Bernard moving down to Cornwall to be closer to his family | 0:24:12 | 0:24:16 | |
and hopefully relax, but a bit of work to do before he can do that, | 0:24:16 | 0:24:20 | |
to sort this place out. | 0:24:20 | 0:24:21 | |
I'm a little bit concerned that that budget isn't going to be enough, | 0:24:21 | 0:24:25 | |
especially to sort out that problematic wall. | 0:24:25 | 0:24:28 | |
How will he get on? | 0:24:28 | 0:24:30 | |
We'll find out later in the show. | 0:24:30 | 0:24:31 | |
Coming up, I want to try and do the splits at this house in Wolverhampton. | 0:24:33 | 0:24:38 | |
If you put a wall along here, make that a bedroom, and that a bedroom. | 0:24:38 | 0:24:43 | |
And find out if Bernard's bungalow has been a big rebuild. | 0:24:46 | 0:24:49 | |
So, literally, I've taken the whole floor up. | 0:24:50 | 0:24:53 | |
Time to head back to Epsom in Surrey, where, | 0:24:58 | 0:25:00 | |
just a mile from the town centre, | 0:25:00 | 0:25:02 | |
I saw this first floor two-bedroom flat with a guide price | 0:25:02 | 0:25:05 | |
of £150,000 plus. | 0:25:05 | 0:25:08 | |
Straight away, I was keen as the foyer looked well cared for. | 0:25:10 | 0:25:14 | |
And inside the flat, it was pretty good too. | 0:25:14 | 0:25:16 | |
A bit shabby, but the reception area had generous proportions. | 0:25:16 | 0:25:20 | |
Though I thought the separate kitchen would need to stay, | 0:25:22 | 0:25:24 | |
there was barely enough space to swing a cat in the first bedroom, | 0:25:24 | 0:25:28 | |
but there was space for a bit of Swan Lake in the other. | 0:25:28 | 0:25:31 | |
It reminds me of, you know, getting your legwarmers on, | 0:25:32 | 0:25:34 | |
having a wee dance practice, like a dance studio of your own. | 0:25:34 | 0:25:37 | |
Do a few moves! | 0:25:37 | 0:25:39 | |
PLIE-ased with their successful bid of 230 grand | 0:25:40 | 0:25:44 | |
were professional property developers Rika and Alan, | 0:25:44 | 0:25:47 | |
who planned to renovate the flat and sell on. | 0:25:47 | 0:25:50 | |
But even the best laid plans of professionals can go awry at times. | 0:25:50 | 0:25:55 | |
We checked out the legal pack. We did everything we could, but still, | 0:25:55 | 0:26:01 | |
it's not always enough. | 0:26:01 | 0:26:02 | |
And so was there any hidden nasties with this property? | 0:26:02 | 0:26:06 | |
There is actually one thing, | 0:26:06 | 0:26:08 | |
and that's that the property hasn't got planning permission, | 0:26:08 | 0:26:10 | |
which basically means that this property | 0:26:10 | 0:26:13 | |
is not a flat recognised by the council. | 0:26:13 | 0:26:16 | |
So whoever owns the freehold here carved it up, but never got permission? | 0:26:16 | 0:26:19 | |
That's correct, yes. | 0:26:19 | 0:26:21 | |
Cool customers Rika and Alan didn't seem too worried about the potential | 0:26:22 | 0:26:27 | |
spanner in the works, | 0:26:27 | 0:26:28 | |
and thought they could turn the flat around in eight to ten weeks at a | 0:26:28 | 0:26:32 | |
cost of 20 grand. | 0:26:32 | 0:26:33 | |
Not forgetting their two grand contingency. | 0:26:33 | 0:26:36 | |
So, would these pros show us how it was done when we returned just eight | 0:26:37 | 0:26:41 | |
weeks later? | 0:26:41 | 0:26:43 | |
# This is how we do it. # | 0:26:43 | 0:26:45 | |
The changes in the flat are truly stunning, | 0:26:57 | 0:27:00 | |
and the real triumph here is the new layout of the entrance hall. | 0:27:00 | 0:27:04 | |
By nicking some space from the reception room, | 0:27:04 | 0:27:07 | |
the kitchen and bedroom are now accessed through the hall, | 0:27:07 | 0:27:10 | |
rather than the living space. | 0:27:10 | 0:27:12 | |
There's now some much-needed built in storage, | 0:27:12 | 0:27:14 | |
and moving the wall in the living room means more space in previously | 0:27:14 | 0:27:19 | |
poky bedroom. | 0:27:19 | 0:27:21 | |
Rika and Alan really have shown us how it's done. | 0:27:27 | 0:27:30 | |
And I'd expect nothing less from a couple of pros. | 0:27:30 | 0:27:33 | |
But the burning question is, | 0:27:33 | 0:27:35 | |
did they manage that retrospective planning permission? | 0:27:35 | 0:27:38 | |
This property has been established as a flat. | 0:27:39 | 0:27:43 | |
I don't see that there are any problems with it. | 0:27:43 | 0:27:45 | |
There is indemnity insurance in place at the moment by the | 0:27:45 | 0:27:49 | |
freeholder. However, the new buyers could have their own policy as well. | 0:27:49 | 0:27:54 | |
So that would be acceptable to most lenders. | 0:27:54 | 0:27:58 | |
The freeholder's indemnity insurance policy will cover Rika and Alan in | 0:27:58 | 0:28:03 | |
the event that the flat would have had to be reverted back to part of the original house, | 0:28:03 | 0:28:08 | |
which means the flat will be mortgageable when it goes to market. | 0:28:08 | 0:28:13 | |
With the planning situation, a development can become immune | 0:28:13 | 0:28:16 | |
from planning enforcement if no action has | 0:28:16 | 0:28:19 | |
been taken within a specified time limit. | 0:28:19 | 0:28:22 | |
In this case, four years. | 0:28:22 | 0:28:24 | |
My advice? Talk to your local planners first. | 0:28:24 | 0:28:27 | |
It saves everyone a lot of unforeseen issues. | 0:28:27 | 0:28:31 | |
-Talking of which... -We had the extra costs that we had to pay to the | 0:28:31 | 0:28:36 | |
freeholder premium for getting permission to make an alteration to | 0:28:36 | 0:28:41 | |
the flat, to move the stud wall about one metre, to extend the second bedroom. | 0:28:41 | 0:28:47 | |
So, negotiating a price for permission ended up costing them. | 0:28:47 | 0:28:51 | |
But how much? And how did that impact the 20 grand budget? | 0:28:51 | 0:28:55 | |
Did they use that all-important two grand contingency? | 0:28:55 | 0:28:58 | |
So, it went to £30,000. With £2,000 contingency! | 0:29:01 | 0:29:03 | |
So it was £32,000 for the works alone. | 0:29:03 | 0:29:08 | |
Obviously, we had to pay a premium to the freeholder for extending the | 0:29:08 | 0:29:13 | |
second bedroom. That was an additional £5,000 | 0:29:13 | 0:29:16 | |
with all the legal fees included. | 0:29:16 | 0:29:18 | |
But it was worth it. We can see where the money went, | 0:29:18 | 0:29:21 | |
and, hopefully, it will be recognised, and hopefully, | 0:29:21 | 0:29:25 | |
we'll be able to sell this, and somebody will find it a nice home. | 0:29:25 | 0:29:29 | |
I'm sure finding a buyer for this gorgeous flat won't be hard. | 0:29:31 | 0:29:35 | |
Their new builder has really delivered the goods, and bang on schedule too. | 0:29:35 | 0:29:39 | |
But what about apprentice, and son, Sven? Did he get stuck in? | 0:29:39 | 0:29:43 | |
School had already started, so he had to go back to school. | 0:29:44 | 0:29:49 | |
He was not happy about that. | 0:29:49 | 0:29:50 | |
He likes doing bits and pieces, and helping out. | 0:29:50 | 0:29:54 | |
He's always hands on. | 0:29:54 | 0:29:55 | |
So it wasn't the fact that he tried to get out of it. | 0:29:55 | 0:29:57 | |
It was more the fact that, really, there wasn't an opportunity. | 0:29:57 | 0:30:00 | |
Well, maybe next time, Sven. | 0:30:00 | 0:30:02 | |
But first, let's see how Rika and Alan have done on this one. | 0:30:02 | 0:30:06 | |
They've spent £267,000 on the flat, | 0:30:06 | 0:30:10 | |
but do two local estate agents think it's worth it? | 0:30:10 | 0:30:13 | |
Let's start with the agent who saw it earlier on. | 0:30:13 | 0:30:15 | |
They've made a number of changes, | 0:30:16 | 0:30:18 | |
they've done really, really well with what they've done. | 0:30:18 | 0:30:20 | |
Especially where they've given themselves, | 0:30:20 | 0:30:22 | |
in the second bedroom, a little bit of extra space. | 0:30:22 | 0:30:24 | |
It really does change things. | 0:30:24 | 0:30:25 | |
It now makes it two doubles rather than a single and a double. | 0:30:25 | 0:30:28 | |
I love the big windows. | 0:30:28 | 0:30:29 | |
And the bright feel to it. | 0:30:29 | 0:30:31 | |
It feels really airy. | 0:30:31 | 0:30:33 | |
And it just feels modern and clean. | 0:30:33 | 0:30:35 | |
There's a lot of young professional buyers | 0:30:35 | 0:30:37 | |
moving out from London to get a little bit more | 0:30:37 | 0:30:39 | |
for their money in this area, | 0:30:39 | 0:30:41 | |
and they will certainly appreciate a good quality finish. | 0:30:41 | 0:30:44 | |
That sounds pretty unanimous to me. | 0:30:44 | 0:30:47 | |
But what about the values? | 0:30:47 | 0:30:49 | |
Could Rika and Alan see a return on their 267-grand investment? | 0:30:49 | 0:30:53 | |
If we were to bring it to the market, | 0:30:55 | 0:30:57 | |
we would expect it to come on for around the sort of £350,000 mark. | 0:30:57 | 0:31:00 | |
And we'd look to really have offers in and around that level. | 0:31:00 | 0:31:03 | |
I would value this property at £350,000. | 0:31:03 | 0:31:06 | |
-That's great. -That's brilliant. | 0:31:06 | 0:31:08 | |
We hoped for that sort of figure. | 0:31:08 | 0:31:10 | |
We had some valuations as well before that came slightly lower, | 0:31:10 | 0:31:14 | |
at the 330 mark, | 0:31:14 | 0:31:17 | |
but we believe that 350, in the region of, it's great. | 0:31:17 | 0:31:21 | |
Very pleased. | 0:31:21 | 0:31:23 | |
The couple's 15 years in the field are evident, | 0:31:23 | 0:31:26 | |
in that potential profit of 83 grand before taxes and fees. | 0:31:26 | 0:31:30 | |
But, come on, guys, give us some tips. | 0:31:32 | 0:31:34 | |
Be brave. Work out the finances in advance. | 0:31:35 | 0:31:40 | |
And know exactly how much you can spend, | 0:31:40 | 0:31:43 | |
because there is always a risk involved. | 0:31:43 | 0:31:46 | |
But you can prepare yourself, and minimise it. | 0:31:46 | 0:31:49 | |
# I want to ride my bicycle | 0:31:52 | 0:31:54 | |
# I want to ride my bike | 0:31:54 | 0:31:58 | |
# I want to ride my bicycle | 0:31:58 | 0:32:00 | |
# I want to ride it where I like. # | 0:32:00 | 0:32:04 | |
DION: Wolverhampton in the West Midlands | 0:32:04 | 0:32:06 | |
has long been an area of manufacturing. | 0:32:06 | 0:32:09 | |
Indeed, if you were riding a bike in the 1970s, | 0:32:09 | 0:32:12 | |
chances are it was made in the city of Wolverhampton. | 0:32:12 | 0:32:15 | |
Nowadays, it focuses its engineering prowess into the aerospace industry, | 0:32:17 | 0:32:22 | |
and as a university city, | 0:32:22 | 0:32:24 | |
is developing the next generation of engineers to continue its cycle on. | 0:32:24 | 0:32:29 | |
I'm just a ten-minute walk away from the centre of Wolverhampton. | 0:32:32 | 0:32:36 | |
And we have got, on this very busy main road, | 0:32:36 | 0:32:38 | |
student accommodation there, | 0:32:38 | 0:32:40 | |
student accommodation there, and here we are, | 0:32:40 | 0:32:43 | |
a semidetached house with a guide price of £50,000, | 0:32:43 | 0:32:47 | |
and it's got three bedrooms. | 0:32:47 | 0:32:49 | |
Sounds like it's got to be worth a look. | 0:32:49 | 0:32:51 | |
Nice surprise. | 0:32:54 | 0:32:56 | |
As soon as you come in, a little portrait here. | 0:32:57 | 0:33:00 | |
Original Minton tiles. | 0:33:00 | 0:33:02 | |
Really nice feature. | 0:33:02 | 0:33:04 | |
Then you step up into the hallway, | 0:33:04 | 0:33:07 | |
and, let me just check to see if they continue. | 0:33:07 | 0:33:10 | |
Yeah, they continue all the way down the hallway. | 0:33:10 | 0:33:13 | |
First reception room on my right-hand-side, it's a good size, | 0:33:13 | 0:33:16 | |
nice high ceilings. | 0:33:16 | 0:33:18 | |
Don't like the look of those walls, though. | 0:33:18 | 0:33:20 | |
We'll come back to that. | 0:33:20 | 0:33:21 | |
You've got your stairs going up to the bedrooms, | 0:33:21 | 0:33:24 | |
central heating, which is good. | 0:33:24 | 0:33:26 | |
And, like I said, those original Minton tiles continue. | 0:33:26 | 0:33:30 | |
Another reception room there. | 0:33:30 | 0:33:31 | |
I can't see any central heating in there. | 0:33:32 | 0:33:34 | |
Then you go to this really grand kitchen, massive kitchen, actually. | 0:33:34 | 0:33:40 | |
No hob or anything, but it's a really nice size. | 0:33:40 | 0:33:43 | |
It's not in great condition. | 0:33:43 | 0:33:44 | |
You would have to start again in here, | 0:33:44 | 0:33:47 | |
and at the end, you've got a sort of box room there. | 0:33:47 | 0:33:50 | |
It may have been a utility room | 0:33:50 | 0:33:51 | |
where you keep your cans and your tins. | 0:33:51 | 0:33:54 | |
Or you could make it into a downstairs toilet, | 0:33:54 | 0:33:56 | |
which would be handy. | 0:33:56 | 0:33:58 | |
I'm pretty sure a house like this, a grand house like this, | 0:33:58 | 0:34:01 | |
was a family home back in the day. | 0:34:01 | 0:34:04 | |
But... | 0:34:04 | 0:34:06 | |
More recently, I'm taking a guess that this was a shared house. | 0:34:06 | 0:34:12 | |
And that would make sense, | 0:34:12 | 0:34:14 | |
because you've got student accommodation that way, | 0:34:14 | 0:34:16 | |
and that way. And maybe this was the same. | 0:34:16 | 0:34:19 | |
# And you see my writing on the wall | 0:34:19 | 0:34:22 | |
# Writing on the wall... # | 0:34:26 | 0:34:29 | |
And the writing might also be on the wall for the boiler. | 0:34:29 | 0:34:33 | |
I've also got some concerns | 0:34:33 | 0:34:34 | |
about what to read into the state of the walls | 0:34:34 | 0:34:36 | |
in the front reception room. | 0:34:36 | 0:34:38 | |
I just wanted to show you something, and let you hear something. | 0:34:39 | 0:34:43 | |
Listen to this. Now, this is a solid wall. | 0:34:43 | 0:34:46 | |
Yeah? Agreed? And down here you've got normal skirting boards. | 0:34:46 | 0:34:50 | |
Albeit very small. But that's all normal. | 0:34:50 | 0:34:52 | |
Over on this side, you've got... | 0:34:52 | 0:34:54 | |
..some boards, and inverted skirting boards, I like to call them. | 0:34:55 | 0:35:00 | |
My big question is... | 0:35:00 | 0:35:02 | |
What is that hiding? | 0:35:03 | 0:35:06 | |
# It's a mystery | 0:35:06 | 0:35:08 | |
# Oh, it's a mystery | 0:35:08 | 0:35:10 | |
# I'm still searching for a clue | 0:35:10 | 0:35:15 | |
# It's a mystery... # | 0:35:15 | 0:35:19 | |
So, upstairs into the three bedrooms, | 0:35:20 | 0:35:23 | |
and this one is at the back of the property. | 0:35:23 | 0:35:26 | |
A good-sized bedroom, looking out onto the back garden. | 0:35:26 | 0:35:28 | |
Family bathroom here. | 0:35:28 | 0:35:30 | |
It's seen better days, I would say. | 0:35:30 | 0:35:32 | |
Get those tiles off, get that bathroom and get that sink out, | 0:35:32 | 0:35:35 | |
start again. Something nice and fresh and new in there. | 0:35:35 | 0:35:38 | |
Down the hallway, second bedroom, good... | 0:35:38 | 0:35:41 | |
In fact, this is a very big bedroom, actually. Nice high ceilings. | 0:35:41 | 0:35:45 | |
And then a little bit further down the hallway, | 0:35:45 | 0:35:47 | |
we've got the master bedroom. | 0:35:47 | 0:35:49 | |
But this is a student area, so let's think, | 0:35:49 | 0:35:53 | |
how can you maximise your money? | 0:35:53 | 0:35:55 | |
You could actually make this bedroom, because it's so big, | 0:35:55 | 0:35:57 | |
you could make it into two, | 0:35:57 | 0:35:59 | |
and as you've got a single bed in here already, | 0:35:59 | 0:36:02 | |
this gives you an indication of how big the bedrooms would be. | 0:36:02 | 0:36:05 | |
So if you were to put... Let's have a look now. | 0:36:05 | 0:36:08 | |
You put a wall along here, make that a bedroom and that a bedroom, | 0:36:08 | 0:36:12 | |
it would come sort of this way, along here. | 0:36:12 | 0:36:15 | |
Stop about here. | 0:36:15 | 0:36:16 | |
You'd have a door here, going into that bedroom, | 0:36:16 | 0:36:20 | |
and a door here, going into that bedroom. | 0:36:20 | 0:36:23 | |
One bedroom becomes two bedrooms, more income from the students... | 0:36:23 | 0:36:28 | |
Money well spent, I would say. | 0:36:30 | 0:36:33 | |
To get those extra financial gains for a house of multiple occupancy, | 0:36:44 | 0:36:48 | |
first, you need to make sure | 0:36:48 | 0:36:49 | |
you comply with the local council regulations. | 0:36:49 | 0:36:53 | |
This can dictate the amount of shared bathrooms | 0:36:53 | 0:36:56 | |
and things such as adequate fire escapes and smoke detectors. | 0:36:56 | 0:37:00 | |
By splitting that bedroom, you could end up with | 0:37:00 | 0:37:02 | |
as many as six separate rooms in this house. | 0:37:02 | 0:37:06 | |
What does an agent from the auction house that sold it think? | 0:37:06 | 0:37:09 | |
As far as the property is concerned, | 0:37:10 | 0:37:13 | |
the conversion to bedsits should be fairly straightforward. | 0:37:13 | 0:37:17 | |
Up to a certain number, you find that there is no planning required. | 0:37:17 | 0:37:22 | |
However, if they try to be a little overzealous | 0:37:22 | 0:37:25 | |
and get some more rooms out of it by subdividing rooms, | 0:37:25 | 0:37:29 | |
they may find that they would need to obtain proper permission. | 0:37:29 | 0:37:33 | |
Yes, you should always check out the regulations with your council | 0:37:33 | 0:37:36 | |
to find out if you require a HMO licence. | 0:37:36 | 0:37:39 | |
Would that be the best option? | 0:37:40 | 0:37:42 | |
The house had a guide price of £50,000. | 0:37:42 | 0:37:45 | |
So what kind of value could it achieve? | 0:37:45 | 0:37:48 | |
First, as a single house for resale. | 0:37:48 | 0:37:51 | |
I would imagine that you'd achieve | 0:37:51 | 0:37:53 | |
something in the region of £130,000, £135,000? | 0:37:53 | 0:37:59 | |
Well, if you were to get it for anything like the guide, | 0:37:59 | 0:38:01 | |
there could be a smart profit. | 0:38:01 | 0:38:04 | |
What about my notion of making this a student rental? | 0:38:04 | 0:38:07 | |
What could you make if all five rooms were let? | 0:38:07 | 0:38:11 | |
Probably in the region of £20,000 to £22,000 per year. | 0:38:11 | 0:38:16 | |
However, that would also include for any outgoings such as gas, | 0:38:16 | 0:38:21 | |
electricity, that type of thing. | 0:38:21 | 0:38:23 | |
I think this house is perfect for student accommodation. | 0:38:25 | 0:38:29 | |
That could be a fantastic return on your money. | 0:38:29 | 0:38:33 | |
Let's see who saw the pound signs when it went under the hammer. | 0:38:33 | 0:38:36 | |
Next lot is a fairly substantial freehold, semidetached house, | 0:38:39 | 0:38:44 | |
at £50,000, am I bid? | 0:38:44 | 0:38:46 | |
At £50,000, to get a starter, buy this or bid. | 0:38:46 | 0:38:49 | |
At 50,000. How good is it? 60 now. | 0:38:49 | 0:38:51 | |
At 60? Thank you, sir, at 60. | 0:38:51 | 0:38:53 | |
Is it 70 now? At 70 and thank you. | 0:38:53 | 0:38:56 | |
Is it 80? 75? | 0:38:56 | 0:38:58 | |
75, madam, thank you. | 0:38:58 | 0:38:59 | |
I've got you first at 75. | 0:38:59 | 0:39:01 | |
After a bit of a slow start, things hotted up. | 0:39:01 | 0:39:04 | |
We rejoin the bidding, going up in halves at £104,000. | 0:39:04 | 0:39:09 | |
104, 104 and a half? | 0:39:09 | 0:39:12 | |
105? 105. | 0:39:12 | 0:39:14 | |
105 and a half? | 0:39:14 | 0:39:17 | |
No? £105,000. | 0:39:17 | 0:39:19 | |
Are we all done, sir? Definitely? | 0:39:19 | 0:39:22 | |
Thank you. One, two, three... | 0:39:22 | 0:39:25 | |
105,000. | 0:39:25 | 0:39:27 | |
And so for over double the guide price at £105,000, | 0:39:29 | 0:39:34 | |
a successful bid was made by Abby. | 0:39:34 | 0:39:37 | |
She works in retail, | 0:39:37 | 0:39:38 | |
and was bidding on behalf of her London-based auntie, Jean. | 0:39:38 | 0:39:42 | |
I met her back at the house to find out a little bit more. | 0:39:42 | 0:39:45 | |
Abby, nice to meet you. | 0:39:47 | 0:39:48 | |
Nice to meet you too. | 0:39:48 | 0:39:49 | |
You've got yourself a very nice property, I think. | 0:39:49 | 0:39:52 | |
Thank you very much. | 0:39:52 | 0:39:53 | |
Now you've got it, what are you going to do with it? | 0:39:53 | 0:39:55 | |
We want to convert all the rooms to bedrooms, | 0:39:55 | 0:39:57 | |
so it's a multiple occupancy, and we want to try and target students. | 0:39:57 | 0:40:01 | |
Was this your university? | 0:40:01 | 0:40:03 | |
Yeah, I just graduated, September. | 0:40:03 | 0:40:05 | |
-Did you do well? -Yes, I got a 2:1. | 0:40:05 | 0:40:07 | |
Look at you, showing off on telly! | 0:40:07 | 0:40:09 | |
THEY LAUGH | 0:40:09 | 0:40:10 | |
-Thank you. -Is this your first venture, together with your auntie? | 0:40:10 | 0:40:14 | |
-Yeah. -And did you want something this big, | 0:40:14 | 0:40:17 | |
or did you just want something for students? | 0:40:17 | 0:40:19 | |
Well, I was thinking something small at first, | 0:40:19 | 0:40:21 | |
but she was thinking more multiple occupancy, big, | 0:40:21 | 0:40:24 | |
so this was perfect, really. | 0:40:24 | 0:40:26 | |
So I suppose, dive in the deep end, it's better, isn't it? So... | 0:40:26 | 0:40:30 | |
-You're not messing about. You've gone for it, haven't you? -Yeah! | 0:40:30 | 0:40:33 | |
Well, she might only be 22, | 0:40:35 | 0:40:36 | |
but she's really stepping up to the plate here, | 0:40:36 | 0:40:39 | |
and having been a recent graduate in Childhood and Family Studies, | 0:40:39 | 0:40:43 | |
she's completely switched on | 0:40:43 | 0:40:45 | |
to what students need in their accommodation. | 0:40:45 | 0:40:48 | |
New kitchen, new bathroom. | 0:40:48 | 0:40:50 | |
Another bathroom down here to cater | 0:40:50 | 0:40:52 | |
to the extra bedrooms we're adding in. | 0:40:52 | 0:40:54 | |
So this will be your... | 0:40:54 | 0:40:56 | |
-Extra bathroom. -Extra bathroom here. | 0:40:56 | 0:40:58 | |
And the two rooms you've got down here, | 0:40:58 | 0:41:00 | |
what are you going to do with that? Are they going to be...? | 0:41:00 | 0:41:02 | |
-Bedrooms as well. -Both bedrooms? | 0:41:02 | 0:41:04 | |
-Yeah. -Upstairs, any changes upstairs at all? | 0:41:04 | 0:41:06 | |
Potentially, may be looking at splitting the front bedroom. | 0:41:06 | 0:41:08 | |
Because of how big it is. | 0:41:08 | 0:41:10 | |
That's what I was thinking. That's what I was thinking! | 0:41:10 | 0:41:12 | |
-Good on you. -Then, obviously that's an extra income from another person. | 0:41:12 | 0:41:16 | |
What I have noticed, as I'm walking around myself, the very front room, | 0:41:16 | 0:41:20 | |
some plasterboard, and it doesn't look great. | 0:41:20 | 0:41:23 | |
We're not sure what's behind it, but we think it's hiding something, | 0:41:23 | 0:41:26 | |
so we planned it into the timescale and the budget | 0:41:26 | 0:41:30 | |
just in case it does add extra time and money to everything. | 0:41:30 | 0:41:34 | |
What kind of budget are we talking about? | 0:41:34 | 0:41:36 | |
We want to say 30. | 0:41:36 | 0:41:38 | |
Along with Auntie Jean's budget of 30 grand, | 0:41:39 | 0:41:42 | |
Abby's project managing should keep her busy for around six months, | 0:41:42 | 0:41:47 | |
with a plan to have the house ready for occupation | 0:41:47 | 0:41:49 | |
in time for the next academic year. | 0:41:49 | 0:41:52 | |
Have you still got pals at uni? | 0:41:52 | 0:41:54 | |
Yeah, yeah. | 0:41:54 | 0:41:56 | |
Some of them, like, my friends I've met through other people. | 0:41:56 | 0:41:59 | |
They've lived in houses, they used to live in halls. | 0:41:59 | 0:42:01 | |
-So they prefer to get together... -And get a shared property. | 0:42:01 | 0:42:05 | |
Yeah. You're in already. That's fantastic. | 0:42:05 | 0:42:08 | |
All you've got to do is send a few texts out. | 0:42:08 | 0:42:10 | |
-"I've got a property for you." -Basically! | 0:42:10 | 0:42:13 | |
-Are you excited? -Yeah, definitely. | 0:42:13 | 0:42:15 | |
Is this something that you want to do? Is this a one-off? | 0:42:15 | 0:42:18 | |
No, it's something I've always had an interest in. | 0:42:18 | 0:42:20 | |
It's always something, like, how am I going to get started? | 0:42:20 | 0:42:22 | |
I don't really have the money. | 0:42:22 | 0:42:24 | |
But, obviously, with my auntie's support | 0:42:24 | 0:42:26 | |
like, I can get to know what it's like, | 0:42:26 | 0:42:28 | |
what I need to do, then I'll have the experience to do it myself. | 0:42:28 | 0:42:31 | |
I think this is a really nice place. | 0:42:31 | 0:42:33 | |
A really nice place. If you get it right, | 0:42:33 | 0:42:36 | |
I think it's going to be money well spent. | 0:42:36 | 0:42:38 | |
I hope you make lots of money, | 0:42:38 | 0:42:39 | |
and Auntie Jean just gives you a little bit too! | 0:42:39 | 0:42:42 | |
-Good luck, Abby. I wish you all the best. -Thank you very much. | 0:42:42 | 0:42:45 | |
That is a brave and mature young lady. | 0:42:46 | 0:42:49 | |
Taking on a property of this size for her first project, | 0:42:49 | 0:42:53 | |
at the age of 22, wow! | 0:42:53 | 0:42:55 | |
What I will say, though - she knows the area. | 0:42:55 | 0:42:57 | |
She knows there is a demand for more student property. | 0:42:57 | 0:43:01 | |
My only concern is that plasterboard in the front room. | 0:43:01 | 0:43:05 | |
What's behind there? | 0:43:05 | 0:43:06 | |
And has she set aside enough money to put it right if needed? | 0:43:06 | 0:43:10 | |
You can find out how she gets on later in the programme. | 0:43:10 | 0:43:13 | |
Well, we're often told that good things come in threes. | 0:43:17 | 0:43:19 | |
I wonder if that's the case for the properties on today's show? | 0:43:19 | 0:43:22 | |
That's absolutely right, Martin. | 0:43:22 | 0:43:23 | |
Well, we know how one buyer got on. | 0:43:23 | 0:43:25 | |
-So how about the other two? -Yes. That wait's over. | 0:43:25 | 0:43:27 | |
Let's find out how they got on. | 0:43:27 | 0:43:29 | |
Back to the Cornish countryside now. | 0:43:29 | 0:43:31 | |
I saw a bungalow which had two bedrooms on the ground floor, | 0:43:33 | 0:43:36 | |
as well as plenty of living space. | 0:43:36 | 0:43:38 | |
It had also been extended up into the loft to add another bathroom | 0:43:41 | 0:43:44 | |
and three further bedrooms. | 0:43:44 | 0:43:46 | |
So far, so good. | 0:43:48 | 0:43:50 | |
Ah! | 0:43:51 | 0:43:53 | |
Famous last words. The joists which support the floor | 0:43:53 | 0:43:56 | |
have completely rotted away, as has some of the floor. | 0:43:56 | 0:44:00 | |
That is not good at all. | 0:44:00 | 0:44:03 | |
And there was even more to be worried about, as this bungalow, | 0:44:03 | 0:44:06 | |
as is common in properties like this in Cornwall, | 0:44:06 | 0:44:09 | |
had been tested to see if its walls and foundations | 0:44:09 | 0:44:12 | |
had been made with mining waste, generally known as Mundeck. | 0:44:12 | 0:44:16 | |
Everything hinged on the results of the board test, | 0:44:16 | 0:44:18 | |
so what would its presence mean? | 0:44:18 | 0:44:21 | |
Bad news, furnace ash. | 0:44:22 | 0:44:25 | |
Basically, the ash from the furnaces | 0:44:25 | 0:44:27 | |
was used in the construction of some of these blocks. | 0:44:27 | 0:44:29 | |
And that is considered a potential problem, and it basically, | 0:44:29 | 0:44:33 | |
to cut a very long story short, | 0:44:33 | 0:44:35 | |
means the house is probably unmortgageable. | 0:44:35 | 0:44:37 | |
This didn't stop Bernard from buying this property for £175,000. | 0:44:38 | 0:44:45 | |
He planned on moving to Cornwall to retire near his family, | 0:44:45 | 0:44:48 | |
who live in the area, and none of the property's faults put him off. | 0:44:48 | 0:44:51 | |
I thought the issues here were not great enough | 0:44:52 | 0:44:57 | |
to be of a major problem. | 0:44:57 | 0:44:59 | |
I thought it's something that can be easily fixed. | 0:44:59 | 0:45:01 | |
It's just a question of how much the property was going to cost, | 0:45:01 | 0:45:05 | |
and how much I'd go to. | 0:45:05 | 0:45:07 | |
And also, I could move into it | 0:45:07 | 0:45:08 | |
and live in it now if I really wanted to. | 0:45:08 | 0:45:11 | |
Without doing anything. | 0:45:11 | 0:45:12 | |
Bernard thought all the work would be done in around 12 months. | 0:45:12 | 0:45:16 | |
But we are actually heading back, well, quite a bit later than that. | 0:45:16 | 0:45:20 | |
It's been three years, | 0:45:20 | 0:45:23 | |
so I think we're overdue a visit to see how Bernard has been getting on. | 0:45:23 | 0:45:27 | |
# Settle down | 0:45:29 | 0:45:31 | |
# Don't settle down without me | 0:45:31 | 0:45:35 | |
# No, no, settle down | 0:45:35 | 0:45:38 | |
# I'll settle down for good | 0:45:38 | 0:45:41 | |
# Yeah, settle down | 0:45:41 | 0:45:45 | |
# I'll settle down around you | 0:45:45 | 0:45:49 | |
# Yeah, settle down | 0:45:49 | 0:45:52 | |
# I'll settle down for sure, yeah... # | 0:45:52 | 0:45:58 | |
Bernard hasn't done too much to the property, | 0:45:58 | 0:46:01 | |
besides putting in some new windows where the old ones had failed, | 0:46:01 | 0:46:04 | |
and a general lick of paint throughout. | 0:46:04 | 0:46:06 | |
Plain sailing so far, although he did have to get stuck in | 0:46:08 | 0:46:11 | |
when it came to the rotten floor in this room. | 0:46:11 | 0:46:14 | |
# Whatever I can do, I will | 0:46:14 | 0:46:18 | |
# Cos I'm good like that... # | 0:46:18 | 0:46:22 | |
That corner here was where the floor had rotted. | 0:46:22 | 0:46:25 | |
So, literally, I've taken the whole floor up. | 0:46:25 | 0:46:29 | |
Completely replaced it with new joists, everything. | 0:46:29 | 0:46:33 | |
And then re-floored it with new laminate flooring. | 0:46:33 | 0:46:37 | |
Painted all the walls, so it's now a little living room now, | 0:46:37 | 0:46:41 | |
where you can sit down and read the paper, or read a book, | 0:46:41 | 0:46:43 | |
whenever you like. | 0:46:43 | 0:46:45 | |
# Yeah, yeah, settle down | 0:46:45 | 0:46:47 | |
# I'll settle down for sure, yeah... # | 0:46:47 | 0:46:53 | |
A lot of the issues in this house | 0:46:53 | 0:46:54 | |
were caused by the absence of guttering and pipe maintenance, | 0:46:54 | 0:46:58 | |
which Bernard has sorted out. | 0:46:58 | 0:47:00 | |
But he's been relaxed about the mine waste issues, | 0:47:00 | 0:47:03 | |
since, out of nine samples, | 0:47:03 | 0:47:05 | |
only one came back as possibly being affected. | 0:47:05 | 0:47:08 | |
And since he's not selling on, he's in no hurry to tackle it. | 0:47:08 | 0:47:12 | |
I haven't set a timescale on it. | 0:47:12 | 0:47:15 | |
I know roughly how much it will cost to do it, and probably, | 0:47:15 | 0:47:20 | |
maybe 10,000 to 15,000. | 0:47:20 | 0:47:23 | |
But that's at the top end. | 0:47:23 | 0:47:24 | |
Bernard also plans on re-concreting the driveway | 0:47:26 | 0:47:28 | |
at some stage in the future. | 0:47:28 | 0:47:30 | |
So when that's been done, | 0:47:30 | 0:47:32 | |
he'll have the repairs made | 0:47:32 | 0:47:33 | |
to the furnace ash affecting the front wall. | 0:47:33 | 0:47:37 | |
He originally had a total budget of £25,000. | 0:47:37 | 0:47:40 | |
So how much of a dent has the work he's done so far made in that? | 0:47:40 | 0:47:44 | |
To be honest with you, it's less than 2,000. | 0:47:44 | 0:47:47 | |
If I'd had the floor, someone in to do it, yes, it would have cost me, | 0:47:47 | 0:47:51 | |
probably, a lot more. | 0:47:51 | 0:47:52 | |
If it's something I can do, I am retired now, | 0:47:52 | 0:47:56 | |
so I need things to do in my retirement! | 0:47:56 | 0:47:59 | |
Things like that suit me fine. | 0:47:59 | 0:48:01 | |
There's one thing, when you've been working day in, day out, | 0:48:01 | 0:48:06 | |
and you don't really have the chance to do things, | 0:48:06 | 0:48:09 | |
I want to take advantage of it, just for a little while. | 0:48:09 | 0:48:13 | |
So I can sort of get up when I want to, do whatever I want to do, | 0:48:13 | 0:48:16 | |
and just relax. | 0:48:16 | 0:48:18 | |
So I'm having the holiday now that I haven't had for years, | 0:48:18 | 0:48:22 | |
so there you go. | 0:48:22 | 0:48:23 | |
Bernard has been living near his brother, | 0:48:25 | 0:48:27 | |
and been able to take in all the nice outdoor spots | 0:48:27 | 0:48:30 | |
that Cornwall has to offer over the last three years. | 0:48:30 | 0:48:33 | |
This seems like it's been a wise purchase. | 0:48:33 | 0:48:36 | |
As far as I'm concerned, I'm glad I bought the house. | 0:48:38 | 0:48:41 | |
I got a feeling about the place when I bought it. | 0:48:41 | 0:48:45 | |
And I think if you're buying a place to live in it, | 0:48:45 | 0:48:48 | |
it's what your heart tells you. | 0:48:48 | 0:48:50 | |
You think, "Yes, I like this, I really feel I could live here." | 0:48:50 | 0:48:53 | |
I like the area, I've got family down here. | 0:48:53 | 0:48:56 | |
So, no problem. | 0:48:56 | 0:48:58 | |
I'm happy. | 0:48:58 | 0:48:59 | |
Well, Bernard might be settled, and isn't planning on selling, | 0:49:00 | 0:49:04 | |
but what would the agents recommend he should do | 0:49:04 | 0:49:07 | |
to get the best price | 0:49:07 | 0:49:09 | |
if he wanted to make a profit from this property? | 0:49:09 | 0:49:12 | |
Let's hear from the agent who saw it last time. | 0:49:12 | 0:49:15 | |
If Bernard was going to sell the property, | 0:49:15 | 0:49:18 | |
I would suggest a new kitchen, | 0:49:18 | 0:49:20 | |
new bathroom, | 0:49:20 | 0:49:21 | |
maybe new flooring, just general redecoration. | 0:49:21 | 0:49:24 | |
And how does the other agent think any potential sales here | 0:49:26 | 0:49:29 | |
would be affected by the front wall still containing mining waste? | 0:49:29 | 0:49:33 | |
At the moment, it is fine. | 0:49:33 | 0:49:35 | |
It's not causing any structural anomalies to the property. | 0:49:35 | 0:49:39 | |
But it's just something to bear in mind in the future, going forward, | 0:49:39 | 0:49:43 | |
if he was to ever sell the property, get it looked at, get it fixed, | 0:49:43 | 0:49:46 | |
get a clean bill of health, | 0:49:46 | 0:49:48 | |
and it can be back up to full market value. | 0:49:48 | 0:49:49 | |
Bearing in mind that Bernard has spent | 0:49:51 | 0:49:53 | |
a total of £177,000 on it already, | 0:49:53 | 0:49:56 | |
and could spend as much as £20,000 | 0:49:56 | 0:49:58 | |
on a new drive and sorting out the front wall, | 0:49:58 | 0:50:02 | |
what exactly would be full market value | 0:50:02 | 0:50:04 | |
for this five-bedroom bungalow? | 0:50:04 | 0:50:08 | |
If it was all mortgageable, | 0:50:08 | 0:50:09 | |
all fixed, I would market the property at £230,000. | 0:50:09 | 0:50:12 | |
If the structural issues were to be sorted, | 0:50:12 | 0:50:14 | |
and the property was improved, | 0:50:14 | 0:50:16 | |
I would recommend a guide price of around £250,000. | 0:50:16 | 0:50:19 | |
It's not even in my mind, what I can make on this. | 0:50:19 | 0:50:22 | |
My point is, I thought, "Yes, I want a nice house | 0:50:22 | 0:50:25 | |
"that will suit me for my retirement." | 0:50:25 | 0:50:28 | |
At the end of the day, | 0:50:28 | 0:50:30 | |
I know that I'm going to be happy, and, also, obviously, | 0:50:30 | 0:50:34 | |
I'm with family nearby. | 0:50:34 | 0:50:36 | |
And, um... | 0:50:36 | 0:50:38 | |
It sort of makes a big difference. | 0:50:38 | 0:50:40 | |
Well, Bernard, I hope you enjoy your retirement | 0:50:41 | 0:50:44 | |
on the beautiful Cornish coast. | 0:50:44 | 0:50:46 | |
Within easy reach of Wolverhampton University | 0:50:54 | 0:50:57 | |
was where I looked at this three-bed semi | 0:50:57 | 0:51:00 | |
with two public rooms, and, given its location, | 0:51:00 | 0:51:04 | |
I think the writing was on the wall for its future, as well as its past. | 0:51:04 | 0:51:08 | |
I'm taking a guess that this was a shared house. | 0:51:10 | 0:51:14 | |
With potentially five letting rooms on offer, a large kitchen, bathroom, | 0:51:14 | 0:51:19 | |
and room to add more, this was surely destined to be a HMO. | 0:51:19 | 0:51:23 | |
Or a house of multiple occupancy. | 0:51:23 | 0:51:26 | |
And it was bought for £105,000 | 0:51:26 | 0:51:28 | |
as a joint venture between Abby and her Auntie Jean. | 0:51:28 | 0:51:33 | |
Having only just graduated from the nearby university, | 0:51:33 | 0:51:37 | |
Abby was well placed to know what was required, and, as such, | 0:51:37 | 0:51:41 | |
was going to oversee the spending of Jean's 30-grand budget. | 0:51:41 | 0:51:45 | |
She hoped to complete the work in around six months, | 0:51:45 | 0:51:48 | |
ready for the next academic year. | 0:51:48 | 0:51:51 | |
Is this your first venture together with your auntie? | 0:51:51 | 0:51:53 | |
-Yeah. -And did you want something this big, | 0:51:53 | 0:51:55 | |
or did you just want something for students? | 0:51:55 | 0:51:58 | |
I was thinking something small at first, | 0:51:58 | 0:52:00 | |
but she was thinking more multiple occupancy, big. | 0:52:00 | 0:52:03 | |
So this was perfect, really. | 0:52:03 | 0:52:06 | |
I suppose, dive in the deep end, it's better, isn't it? So... | 0:52:06 | 0:52:09 | |
You're not messing about, you've gone for it, haven't you! | 0:52:09 | 0:52:11 | |
Yeah! | 0:52:11 | 0:52:13 | |
# Go for it, yeah | 0:52:13 | 0:52:16 | |
# Go for it, yeah... # | 0:52:16 | 0:52:20 | |
So, did they really go for it? | 0:52:20 | 0:52:22 | |
Well, just under seven months on, and we are back. | 0:52:22 | 0:52:25 | |
That's a pretty impressive kitchen, with bags of personality, | 0:52:33 | 0:52:37 | |
and the rear utility room is now a plush new shower room. | 0:52:37 | 0:52:41 | |
Great minds, eh, Abby, great minds! | 0:52:43 | 0:52:45 | |
But what about the five lettable rooms? | 0:52:45 | 0:52:47 | |
Have they been given the personal touch? | 0:52:47 | 0:52:50 | |
Each room that we have here is also named after my great grandparents, | 0:52:52 | 0:52:56 | |
so we've got, like, for example, | 0:52:56 | 0:52:58 | |
Richard, or Dorothy, and, obviously, | 0:52:58 | 0:53:00 | |
each room has its own different theme. | 0:53:00 | 0:53:02 | |
So, downstairs, say hello to Dorothy. | 0:53:05 | 0:53:07 | |
Merris, hi, Merris. | 0:53:10 | 0:53:12 | |
And luckily, neither Dorothy nor Merris | 0:53:12 | 0:53:15 | |
are hiding anything behind | 0:53:15 | 0:53:17 | |
the strange boarding I saw on my first visit. | 0:53:17 | 0:53:19 | |
All the walls were as sound as a pound. | 0:53:21 | 0:53:24 | |
While, upstairs, we have Sam. | 0:53:24 | 0:53:25 | |
Hello, Sam. | 0:53:25 | 0:53:26 | |
Effeginia, which has remained as one bedroom. | 0:53:31 | 0:53:34 | |
Which just leaves bedroom number five, Richard. | 0:53:35 | 0:53:38 | |
And they all share a bathroom called Dion. | 0:53:43 | 0:53:46 | |
No, they don't, | 0:53:46 | 0:53:48 | |
I'm just trying to get in on the act! | 0:53:48 | 0:53:50 | |
Who did Abby call in to do the work? | 0:53:50 | 0:53:52 | |
# Call me in a sweet design Call me... # | 0:53:52 | 0:53:57 | |
The majority of the work has been done by the builder that we found. | 0:53:57 | 0:54:00 | |
It took us a long time to find him, because, like, | 0:54:00 | 0:54:02 | |
a lot of the builders we had before | 0:54:02 | 0:54:04 | |
wanted us to tell them what we wanted to do, | 0:54:04 | 0:54:07 | |
which we didn't really know. | 0:54:07 | 0:54:09 | |
We wasn't sure. We needed them to sort of advise us. | 0:54:09 | 0:54:12 | |
And, obviously, we found our builder. | 0:54:12 | 0:54:14 | |
He knew what he was doing straightaway. | 0:54:14 | 0:54:16 | |
And once they found the right builder, | 0:54:16 | 0:54:19 | |
the bulk of the work was complete within their six-month timescale. | 0:54:19 | 0:54:23 | |
There's a back garden that still has some finishing off to do, | 0:54:23 | 0:54:26 | |
tidying up, planting, etc. | 0:54:26 | 0:54:28 | |
But how involved did Abby and Auntie Jean get? | 0:54:28 | 0:54:31 | |
I have a job that I do full time, I work in retail. | 0:54:32 | 0:54:35 | |
So where as I was meant to play a huge role, | 0:54:35 | 0:54:37 | |
because of her living in London and not here, | 0:54:37 | 0:54:39 | |
it sort of had to switch up, | 0:54:39 | 0:54:41 | |
and she had to spend the majority of her time down here. | 0:54:41 | 0:54:44 | |
But, in the long run, it was better, | 0:54:44 | 0:54:45 | |
because then I learned properly how to do stuff from her. | 0:54:45 | 0:54:49 | |
And she learned some stuff along the way. | 0:54:49 | 0:54:51 | |
And, very wisely, Jean took a course on how to run a HMO. | 0:54:52 | 0:54:57 | |
Meanwhile, Abby's full-time job and returning to study | 0:54:57 | 0:55:01 | |
meant Jean took over, | 0:55:01 | 0:55:03 | |
but she still managed to be involved in this project. | 0:55:03 | 0:55:06 | |
So how did the partnership work? | 0:55:06 | 0:55:08 | |
Working with my aunt has been interesting. | 0:55:10 | 0:55:12 | |
She's a bit of a perfectionist. | 0:55:12 | 0:55:14 | |
Say, if something was put in a certain way, | 0:55:14 | 0:55:16 | |
I'd be like, "I don't mind that." | 0:55:16 | 0:55:18 | |
She'd be like, "No, no, it's got to be done this way." | 0:55:18 | 0:55:20 | |
We managed to compromise and get through it, so it's been good. | 0:55:20 | 0:55:24 | |
And if there was perhaps a slight change in the roles played here, | 0:55:24 | 0:55:27 | |
there was also a change in the thinking | 0:55:27 | 0:55:29 | |
of what the house could be used for. | 0:55:29 | 0:55:31 | |
After speaking to the landlords that have HMOs, | 0:55:31 | 0:55:34 | |
we realised that it would be better for us to let to professionals, | 0:55:34 | 0:55:38 | |
because then we could have longer tenancy agreements. | 0:55:38 | 0:55:41 | |
Whereas, probably, every two years, | 0:55:41 | 0:55:42 | |
we've got to find new tenants from students, | 0:55:42 | 0:55:45 | |
and they're not going to be living here for a full year, | 0:55:45 | 0:55:47 | |
just during term time. | 0:55:47 | 0:55:48 | |
Totally get that. | 0:55:50 | 0:55:51 | |
Student lets aren't for everyone. | 0:55:51 | 0:55:54 | |
Financially rewarding, but hard work. | 0:55:54 | 0:55:56 | |
Talking about money, though... | 0:55:57 | 0:56:00 | |
Our original budget was £30,000. | 0:56:00 | 0:56:02 | |
We increased it a bit, | 0:56:02 | 0:56:03 | |
just in case the walls in the reception rooms | 0:56:03 | 0:56:05 | |
needed extra work doing. | 0:56:05 | 0:56:07 | |
But, in the end, we only spent £23,000. | 0:56:07 | 0:56:09 | |
That is good going, as it includes the building work, | 0:56:11 | 0:56:14 | |
materials, carpets, furniture, | 0:56:14 | 0:56:16 | |
but there were another £5,000 in fees. | 0:56:16 | 0:56:20 | |
Money well spent. Well, what do two local property experts think? | 0:56:20 | 0:56:24 | |
It's my second visit to the property. | 0:56:26 | 0:56:28 | |
And, yep, they've really done it out well. | 0:56:28 | 0:56:31 | |
I think the layout of the property is very good, | 0:56:31 | 0:56:33 | |
because you've created an extra shower room downstairs. | 0:56:33 | 0:56:36 | |
So you've got shower rooms on both floors, | 0:56:36 | 0:56:39 | |
you've got a nice big kitchen. | 0:56:39 | 0:56:41 | |
Yeah, the layout works really well. | 0:56:41 | 0:56:42 | |
This is Abby and her auntie's first property venture together. | 0:56:44 | 0:56:47 | |
But is it a financially successful one, | 0:56:47 | 0:56:50 | |
with an outlay of £133,000 on the house? | 0:56:50 | 0:56:54 | |
I would feel that they would achieve | 0:56:54 | 0:56:57 | |
something between £170,000 and £175,000. | 0:56:57 | 0:57:01 | |
Fully occupied, you're going to be looking in the region of £170,000. | 0:57:01 | 0:57:05 | |
So a potential pre-tax profit of between £37,000 and £42,000. | 0:57:05 | 0:57:11 | |
But it's the rentals that's really important here. | 0:57:11 | 0:57:14 | |
We have one single in the property, | 0:57:14 | 0:57:15 | |
which is going to be in the region of £90 per week, | 0:57:15 | 0:57:18 | |
and the doubles do vary slightly in sizes, | 0:57:18 | 0:57:20 | |
but they are going to be anywhere up to £120, maybe £130 per week. | 0:57:20 | 0:57:24 | |
The smaller rooms in the property | 0:57:24 | 0:57:27 | |
would rent out at £90 to £100 per week. | 0:57:27 | 0:57:31 | |
And the larger rooms would be in the region of £110 to £115. | 0:57:33 | 0:57:38 | |
The figures for the rental values of the room are quite good. | 0:57:38 | 0:57:42 | |
They are similar to ours, so that's great. | 0:57:42 | 0:57:46 | |
Those figures will equate | 0:57:46 | 0:57:48 | |
to an annual income of around £25,000 to £30,000, | 0:57:48 | 0:57:51 | |
or a yield of about 20%. | 0:57:51 | 0:57:54 | |
Good on you, girls. | 0:57:54 | 0:57:55 | |
So will this property partnership continue? | 0:57:55 | 0:57:58 | |
Yeah, definitely, I would work with her again. | 0:58:00 | 0:58:02 | |
It's been fun to learn more about each other, | 0:58:02 | 0:58:04 | |
especially seeing as she doesn't live here. | 0:58:04 | 0:58:06 | |
You know, spending a bit more time with each other. | 0:58:06 | 0:58:09 | |
So, yeah, looking forward to the next one, definitely. | 0:58:09 | 0:58:12 | |
Well, it's not unusual to have the odd hiccup here and there | 0:58:14 | 0:58:17 | |
when it comes to property developing. | 0:58:17 | 0:58:19 | |
Yeah, that is true. | 0:58:19 | 0:58:20 | |
But if you do it right, the returns can be rewarding. | 0:58:20 | 0:58:22 | |
Indeed, they can. | 0:58:22 | 0:58:23 | |
So join us next time for more auction stories | 0:58:23 | 0:58:26 | |
on Homes Under The Hammer. | 0:58:26 | 0:58:28 | |
-ALL: -Goodbye. | 0:58:28 | 0:58:29 |