Episode 78 Homes Under the Hammer


Episode 78

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Transcript


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Hello and welcome. Now, you don't have to have bags of experience

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to give property developing a go.

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But if you have good contacts in the trade,

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or are even quite handy yourself, you could save time and money.

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Yes, so, do you fancy it?

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Well, why not pop down to your local property auction and give it a go?

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Well, no matter how experienced you are in property there'll always be

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things that pop out of the woodwork, literally, and catch you unawares.

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That's both the exciting and terrifying part of it.

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So, let's find out how it worked out for buyers on today's show.

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In Derbyshire, the floor plans in this house get the thumbs up from me.

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Although this is basically your only main downstairs living room,

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it actually works.

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Whereas on a trip to Wales I'm rather baffled by this house's layout.

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So, the kitchen, I'd imagine, is through here.

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No, you've got a set of stairs.

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And in Kent, Lucy discovers some important information about a property we first saw in 2014.

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There is something I haven't told you yet that could affect planning permission here.

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All these properties have been sold at auction and we'll find out who

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bought them and what they paid for them when they went under the hammer.

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Sold, it's yours, sir.

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This is Langley Mill, a small market town in Derbyshire's Amber Valley.

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It has its own train station and is close to the M1.

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Langley Mill is very well-placed indeed,

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being close to both Derby and Nottingham.

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And it's also the joining point of three canals and two towns,

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Langley Mill and Aldercar,

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and I have a meeting of my own with what I hope will be an interesting property lot.

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So, what was up for auction?

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Well, a two-bed terrace, pretty much like these,

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guide price of £50,000 plus.

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You can't go wrong with these kind of properties.

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Or can you? Let's find out.

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The outside suggests a bit of TLC might be needed

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and I'd want to know who owns the passageway and if there's a flying freehold.

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That's when part of a building is above another part belonging to someone else.

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Lenders may ask for indemnity insurance to cover any repair disputes etc.

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So, what have we got in this instance?

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Well, quite surprised actually, because you walk through the door,

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very open-plan room.

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Obviously been adapted over time.

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Which actually creates a nice impression.

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You've got the staircase in the middle there, which, yeah, actually works for me.

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Hm, one thing that doesn't work, though, is the state of the stairs.

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The gaps in the balustrade will not comply with building regulations so those need filling in.

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But in terms of layout I do like this open-plan feel.

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You know, if you've got a smaller house then, you know,

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make your one main living room as big as you possibly can by knocking

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down walls and taking out unnecessary features.

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And then it feels a lot bigger than it actually is.

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Although this is basically your only main downstairs living room,

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it actually works.

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Classic kind of layout for this kind of property where you've got your

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kitchen there at the back and then further on through to the only bathroom in the property.

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That's not ideal but it's sort of what people expect

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from these kind of properties, so not too much of an issue.

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And again, coming back to that guide price...

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..it's good. It's good.

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# So far, so good

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# So far, so nice... #

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It's an area that's popular with renters so you could turn this into a nice little earner,

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particularly if you get it close to that £50,000 plus guide price.

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Hopefully, there are no nasty surprises upstairs.

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So, up those centrally located stairs to the upper floor.

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Now, the first thing you notice when you come up here is something a bit strange.

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It feels wider than it is downstairs.

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Well, that's because this bit of the property is actually above

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that little passageway, which is downstairs,

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and runs to the back of the property.

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Now, that's fine as long as you know who owns that passageway,

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otherwise you get into the realms of flying freehold.

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That's something your solicitor would need to check out.

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But the bonus is that actually upstairs feels really spacious.

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There are only currently two bedrooms.

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A large one at the front and a really big one at the back.

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Now, given that you've got a couple of windows here and also the size of it,

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surely you could either get another bedroom in here,

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or move that bathroom,

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and then you could create some kind of utility room downstairs.

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Either way, I think it's an easy thing to do

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that's going to add value to the house.

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So, all in all, really great.

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# Come on and make it

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# Come on and make it

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# Just better... #

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Out the back, there is even more opportunity to add value

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with a rather tired flat roof extension

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perhaps being better replaced with a bigger two-storey extension,

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which would potentially allow you to have even more bedrooms upstairs.

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To help with these decisions and more we asked along an agent

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from the auction house that sold it

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for his opinion on this property, guided at £50,000 plus.

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# Come on and make it just better... #

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First impressions of the property is it's tired, it's exhausted,

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it requires a fair amount of work.

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There is scope. There is good size bedroom space upstairs.

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There may be potential to convert it into three bedrooms,

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even put in a shower room.

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-But the property's tired.

-I agree, it is tired.

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But it does look as though you could do a basic refurbishment if you

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wanted to and you have here an opportunity to add value

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with a third bedroom or a shower room.

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The agent thinks you could spend between £10,000-£20,000,

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depending on how far you wanted to go with it.

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So, is there any money to be made here?

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Once this property's finished, hopefully to a high standard,

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as a two-bed you're looking in the region of £75,000-£80,000.

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If it's three-bedroom then you are looking slightly higher.

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You're looking within the region of £80,000-£90,000.

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So, what kind of rental could it make?

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With regards to rental,

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as a two-bedroom property you're looking within the region of 425-450 per calendar month.

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As a three-bedroom property that may open the market to a family,

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so you are looking within the region of 450, maybe, maximum,

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£500 per calendar month.

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Assuming you got it for £50,000 and spent £20,000 on it,

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£500 per calendar month would see a yield of around 8%.

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Now, that's pretty healthy.

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So, keep the budget nice and tight and you'd end up with a really good

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home for not very much money,

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or a potentially very profitable rental property.

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Let's see who bought it when it went under the hammer.

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A two-bedroom mid-terraced house,

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bay-fronted, scope for some improvement.

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Start me on the guide, 50.

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50, I'm looking for. 45.

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Bid me. 45, I'm bid, thank you very much.

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At £45,000 we're away.

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46. And seven. 47 is bid.

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And eight. 47.

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48. 48 is bid.

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49 is bid. Thank you.

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49. Take the half.

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49 and a half. Treat you the same, madam.

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50. Another half.

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At £50,000.

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Looking for 50 and a half elsewhere.

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And a half. 51.

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And a half. 52.

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And a half. 53.

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And a half. 54.

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And a half.

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55. And a half.

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55,500 at the back of the room.

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56. 56 and a half.

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No? At £56,000, make no mistakes, on my right, lady's bid,

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at £56,000 for the first time.

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At £56,000 for the second time.

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If you're sure and all done, hammer's up, it goes at £56,000.

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Sold. It's yours, madam, bidder number 72.

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Thank you.

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So the hammer fell on the two-bed terraced house in Langley Mill at

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56,000, and it was bought by husband and wife team Barbara and Stephen.

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I met the couple back at their new property to find out the plan.

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-Stephen, Barbara, good to meet you both.

-Hello.

-Congratulations.

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Tell me why you wanted to buy this place.

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We wanted to buy it really towards our pension.

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OK. Is it something you've done before?

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-Yes.

-Yes.

-OK, and that went well, or not so well?

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-Well, reasonably well.

-Reasonably well.

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Reasonable enough that you're still here and wanting to buy this one.

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-Yes.

-Yes.

-What was it about this house that you particularly like?

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We came to look at it the day before it went up for auction.

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-Oh, wow.

-And it just spoke to me.

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And it sort of... "Please, please buy me."

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-Aww.

-And it's got a feature on the front -

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it looked as if it had got raised eyebrows.

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And I thought, I like it, it's quirky.

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# It spoke to me

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# Yea-ea-eah. #

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Well, maybe not the most conventional reason

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for buying a property but if it works for them, who am I to argue?

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But I'm now intrigued to know how they're going to

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make this house speak to would-be buyers or tenants.

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So, tell me what you're going to do to it then.

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-Most of it's going to get ripped out.

-Right.

-New kitchen, bathroom, rewire.

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Right. Keep the layout as it is with the stairs in the middle here?

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-I think so.

-Yes, I think so.

-You wouldn't swap them round, perhaps?

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-I don't think so.

-No, no. We'll do something with the stairs.

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Do something with them? Like what?

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-They're not safe for a start, are they?

-No, we've realised that.

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-No, no.

-We've realised that. You can't have big holes through the sides.

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No, ideally not, no, small children...

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-We'll work something out.

-We've got a few ideas.

-You have?

-Yes.

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Fair enough. Bathroom, of course,

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traditional layout of these kind of houses right at the back, through the kitchen.

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-Yes.

-Any plans to try and move that anywhere else,

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or is it going to stay where it is?

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-I don't think so.

-I don't think so, no. Don't think so.

-We'll leave it where it is.

-Maybe not.

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-We might look at it. We don't know.

-Who's going to do the work?

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-Most of it will be us.

-Right.

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-So...

-Are you fairly handy, both of you, then?

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-Qualified tradesman, carpenter, so...

-Oh, OK, great.

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-That works.

-But I've done, you know, plumbing, bricklaying.

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-Right.

-All the lot all my life.

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And is the idea then to do it up and sell it on, or what?

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No, we shall just rent it out, I think.

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-Right.

-So, I don't think we're going to sell it when it's done because it's part of our pension.

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So, what's the budget for the work you've got planned?

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-Well...

-About... What we said, about 10,000, didn't we?

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OK. And the timescale?

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I think it's going to take me probably nine months to a year.

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That's with you working on it most of the time, is it?

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-Yes.

-Without any help? Mostly you, then?

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I will get, obviously some people.

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-Gas and electric.

-Gas and electric stuff like that.

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-Right.

-And my daughter.

-Your daughter's going to help out as well?

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-Yes.

-Well, listen, congratulations.

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Good luck with it. Look forward to seeing how you get on.

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-Thank you.

-I'm sure you will, Martin.

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So, slightly unconventional reasons for choosing a property

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but actually I think they've got a pretty good one here.

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How will they get on sorting it out?

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You can find out later in the show.

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Next up, I'm in Wales in the village of Tylorstown in the Rhondda Valley,

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with Cardiff to the east and Swansea to the west.

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The village's namesake happens to be a Londoner - Alfred Tylor,

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who opened the first mine here.

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But, ever since, Tylorstown has been Welsh through and through.

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# I'm gonna name it

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# After yo-o-o-o-ou

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# After you... #

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I'm here to see a three-bedroom mid-terraced house

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with a guide price of £25,000 plus.

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This is it. Now, the auction catalogue says it's split over three floors.

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But what's not immediately obvious is how.

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This needs further investigation.

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Well, inside the first thing you notice is that it's a lot brighter

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than you might expect with these sorts of houses.

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Through to a reception room.

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You know what? It's a really good size.

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Often it can feel cramped.

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And considering no-one's lived here for a while, it would seem,

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it doesn't smell too bad and it doesn't have that mouldy smell.

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You have a feminine touch with the wallpaper.

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Really good news, which is not always the case,

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you've got central heating, double glazing.

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So far so good.

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Walking along the hallway you go round in a bit of a maze.

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Let's see.

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You know, it feels solid.

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Everything feels pretty solid.

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And then you have a bathroom, which needs taking out,

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but you know, it's a pretty decent size.

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You could get your shower, your bath, in there.

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So, the kitchen, I'd imagine, is through here.

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No, you've got a set of stairs.

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Now, this could explain and solve the mystery of the three floors.

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Let's go and find out.

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Ah. Indeed it does solve the mystery.

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So, downstairs here in what you might call the basement you have the kitchen.

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But what's wonderful is it's kind of flooded with light.

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It's not your normal basement feeling where it's poky and dingy.

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And the great thing about these Welsh valleys

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is that you can build this third floor right at the bottom

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into the incline of the hills and yet you'd never know from the front of the house.

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Ah, not so great.

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You have quite a lot of damp patches, kind of black and mouldy, round the door.

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On the plus side it is around the door,

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so perhaps that's a sign that it's a ventilation problem.

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You know, somebody's not lived here for a long time.

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Hopefully not too bad.

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You definitely want to get it checked out with a damp specialist.

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The kitchen is a great size.

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It probably needs taking out to modernise it.

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And I'm thinking it's not ideal to have your kitchen,

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it wouldn't be to everyone's taste to have it down here.

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What do you do? Do you make your supper and carry it up the stairs on a tray?

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Not very sociable.

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But then again, you have a great garden area, and what a view of the hills.

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Absolutely stunning.

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So, you could make it sociable, you know, by taking a wee G&T outside,

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enjoying it, or your cup of tea in the morning,

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or a gathering with friends.

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# Oh, now tell me where can you party, child, all night long?

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# In the basement Down in the basement

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# That's where it's at... #

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I know we've seen properties with this kind of configuration on the show before.

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I rather like it.

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I can imagine decking, or even a little conservatory,

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to make use of that amazing view.

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But having all these stairs wouldn't suit everyone.

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Time to get to the top floor.

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Upstairs to our bedrooms, and the floral theme on the wallpaper continues.

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The wallpaper's hanging off but, you know, just cosmetic.

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And I can see through to a smaller box room.

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It's not actually as titchy as you might find in some of these terraced houses.

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You might want to use it as a nursery, or maybe an office.

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And through to a really decent-sized bedroom here.

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But one thing I'm noticing as I'm walking around,

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and particularly on this floor, is the slope.

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It feels like you're at sea. It's quite discombobulating.

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Allow me to demonstrate.

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I could borrow this bottle of water from the crew...

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# On a roll again

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# Rock and roll again... #

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Now, THAT'S a slope.

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# On a roll again

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# Rock and roll again... #

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So, there are certainly some ups and downs with this house

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but it's a good size and it's pretty solid,

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so I would be inclined to giving it the thumbs-up.

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But, what's a local estate agent's angle on this three-bed house?

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If I had this property I would definitely give it a lick of paint.

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I wouldn't change any of the room layouts

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because they're all pretty decent.

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As soon as I walked in the property,

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the first room I went into, you could actually feel the angles.

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It does feel like you're walking slightly up a hill.

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And that's not too different from some of the other houses on this street,

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which doesn't seem to affect purchases or renters.

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OK, so that's good to know.

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So, let's crack on with some figures for this house that was guided at £25,000 plus.

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Once this property's renovated,

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I would put it on the market for 90/95,000

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if it was done up to a really high standard.

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And its rental potential?

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This property would definitely achieve £450 per calendar month.

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There are properties that we rent on this street

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for £400 per calendar month but this is quite large.

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I really like this house.

0:17:370:17:39

You feel like you are getting a surprise bonus third floor.

0:17:390:17:43

But speaking of floors, well, it really is quite slopey in there.

0:17:430:17:48

Let's hope that doesn't mean enthusiasm sloped off at auction when it went under the hammer.

0:17:480:17:54

Going price, 25,000 plus.

0:17:580:18:00

You get a three-bedroomed house, put me in, 20,000.

0:18:000:18:03

OK, I've got 20 there, will you go 21?

0:18:040:18:07

22. 23. 24. 25. 26. 27.

0:18:070:18:12

28, 29. 30...

0:18:120:18:14

So there was a flurry of activity on the three-bed house and we rejoin

0:18:140:18:18

with bidding at 36 grand.

0:18:180:18:20

36, 37, madam?

0:18:200:18:22

37, will you go 38, sir?

0:18:220:18:24

No, right, 37 and a half here. 38? 38, madam.

0:18:240:18:27

And a half. 39.

0:18:270:18:30

And a half. 40?

0:18:300:18:31

And a half? No. 40, to the lady on the steps.

0:18:310:18:34

40,000 to the lady at the steps.

0:18:340:18:36

I'll take half anywhere else in the room otherwise,

0:18:360:18:38

to the lady on the steps at 40,000. For the first time?

0:18:380:18:41

40,000 for the second time.

0:18:420:18:45

Last chance, £40,000, sold, madam.

0:18:450:18:47

£40,000, number 135.

0:18:470:18:50

No, the successful bid wasn't the lady in the glasses,

0:18:500:18:53

but tucked away in the stairs was Joanna, who bought it for 40 grand

0:18:530:18:58

as a joint project with husband, Romel.

0:18:580:19:00

They live a two-hour drive away from this,

0:19:000:19:03

their first step in property development.

0:19:030:19:05

# The first step is the hardest

0:19:050:19:10

# The first step is the hardest. #

0:19:100:19:15

I caught up with them after they had been reunited with baby Ira.

0:19:150:19:19

-Joanna, hello.

-Hi, there.

-Romel.

-Hello.

-Congratulations.

0:19:190:19:23

-Thank you.

-How old is Ira?

0:19:230:19:25

-She's just going to be...

-Four months.

-Four months, nearly.

0:19:250:19:28

And is she your first or does she have siblings?

0:19:280:19:31

She's got a bigger sister and brother, six and three.

0:19:310:19:34

-Six and three?

-Yes.

0:19:340:19:36

So six and three and four months, and a new property.

0:19:360:19:40

That's exactly what it is.

0:19:400:19:42

OK, so we have a family who have a two-hour drive,

0:19:430:19:46

three young kids and a three-storey house.

0:19:460:19:48

So, it is safe to say they like a challenge, and it would seem they

0:19:480:19:52

like spontaneity and risk taking, too.

0:19:520:19:55

The night before the auction, she just did tell me,

0:19:580:20:01

"Oh, there is an auction tomorrow morning, would you like to go?"

0:20:010:20:04

So, I thought of coming to the auction,

0:20:040:20:07

see how it was going to go on,

0:20:070:20:09

just to get an idea about the auction, but she had a different idea.

0:20:090:20:12

-I had done a bit of research.

-She had done a bit of research,

0:20:120:20:15

I didn't know, and she ended up buying the house.

0:20:150:20:17

So, Joanna, you had a different idea.

0:20:170:20:20

It doesn't sound like you massively shared this idea with your...

0:20:200:20:23

No, we had an idea that we wanted to invest in property.

0:20:230:20:26

-Yeah.

-Romel wasn't sure.

0:20:260:20:29

-I am kind of a driving force.

-True.

0:20:290:20:33

And we are a team, so we are working as a team, but someone needs to,

0:20:330:20:37

-you know, push the wagon.

-Sometimes it does need someone...

0:20:370:20:41

Initiative. Because we've been always saying,

0:20:410:20:43

"We're going to go to auction, we're going to see, we're going to buy,

0:20:430:20:46

-"we're going to do this," but it never happens.

-It never happens.

0:20:460:20:49

We just needed that little push and maybe just finally start it.

0:20:490:20:52

There is initiative and then there is real courage,

0:20:520:20:55

which slightly gives me the fear that you would buy somewhere and

0:20:550:20:58

you didn't...you hadn't been there and you could have come in here and the walls were falling down!

0:20:580:21:02

So what made you say, "Yes, I'm going to go for it"?

0:21:020:21:05

I'm kind of an optimistic person, if that makes sense?

0:21:050:21:09

I know, in terms of investment and business,

0:21:090:21:11

you need to be more bold and do your homework and things,

0:21:110:21:15

but I got something like a gut feeling and I really felt...

0:21:150:21:18

..that this should be a good thing.

0:21:190:21:22

So, you know, even if things don't turn out always our way,

0:21:220:21:26

we will make it our way.

0:21:260:21:28

# Oh, we're gonna make it our way... #

0:21:280:21:34

Joanna, originally from Poland,

0:21:340:21:36

met Bangladesh-born Romel when she was studying in London to become a

0:21:360:21:40

dentist, while Romel works as a night manager in a hotel

0:21:400:21:44

and plans to take time out to work on the property.

0:21:440:21:47

They've given themselves two to three months for the refurb

0:21:480:21:53

and a 10-15 grand budget,

0:21:530:21:55

but what do they hope to get done in that time and with that money?

0:21:550:21:58

Flooring, bathroom, kitchen, as usual.

0:22:000:22:04

We are going to put something sleek,

0:22:040:22:06

shiny stuff and make it look presentable.

0:22:060:22:09

The kitchen, slightly unusually, is downstairs.

0:22:090:22:13

-Yes.

-Do you want to keep it that way?

0:22:130:22:15

-I think so, yeah.

-We want to, because it goes out to the garden.

0:22:150:22:18

So, if someone wants to do barbecue or anything,

0:22:180:22:21

then it's quite nice to be able to go out straight.

0:22:210:22:24

There's some damp downstairs. What did you make of that?

0:22:240:22:27

Yeah, there is obviously, as you said, there is damp,

0:22:270:22:30

but we are hoping it is not anything very major.

0:22:300:22:33

-It probably...

-It's been locked down for quite a long time.

0:22:330:22:37

So hopefully it is a condensation kind of thing.

0:22:370:22:40

But we will take some advice from specialists and make sure we deal

0:22:400:22:43

-with that before we do anything else.

-Do anything else.

0:22:430:22:45

When I went upstairs, especially,

0:22:450:22:48

I was aware that there was a real slope.

0:22:480:22:50

Are you concerned about that?

0:22:500:22:52

-Not really.

-Not really.

-I'm going to make it even. I know.

0:22:520:22:56

You guys. You're pretty super-confident about it.

0:22:570:23:00

-Yeah.

-Better to be.

-I am not very like, a handyman, you know,

0:23:000:23:04

but I do a little bit of stuff in my house and things,

0:23:040:23:08

I just recently done, with the help of a friend, we did the loft.

0:23:080:23:13

-Conversion and things.

-Now I feel that things are easy.

0:23:130:23:16

You just need to start it.

0:23:160:23:19

We will obviously have help from professionals.

0:23:190:23:21

It is not like we're going to be, you know,

0:23:210:23:24

trying handiwork or DIY in here,

0:23:240:23:26

but obviously, if we are going to have a professional on-site,

0:23:260:23:31

Romel definitely can, you know,

0:23:310:23:33

A, he can manage and make sure that they do the job.

0:23:330:23:36

-Yeah.

-And I can do, like the garden and things, obviously.

0:23:360:23:40

I'm going to strip it of everything, lay out grass,

0:23:400:23:44

make it look presentable.

0:23:440:23:46

Well, I cannot wait to see what you do with the place.

0:23:460:23:48

I can't wait as well.

0:23:480:23:50

-Congratulations again.

-Thank you very much.

0:23:500:23:52

-Good luck.

-Thank you. Thank you very much.

0:23:520:23:54

Good luck, wee girl.

0:23:540:23:57

So, this was Joanna, Romel and Ira's first auction.

0:24:000:24:04

Not only that, but they decided to buy a property without even seeing it!

0:24:040:24:08

But then, Joanna said she just followed her instincts.

0:24:080:24:11

Was that gut reaction right?

0:24:110:24:14

You can find out later in the show.

0:24:140:24:16

Coming up, we return to a large property development in Kent

0:24:170:24:22

that we first saw back in 2014.

0:24:220:24:25

So, now, is it finally finished?

0:24:250:24:27

And in Wales, I think there might be a new property developer in town.

0:24:270:24:32

It was a fantastic experience, first time.

0:24:320:24:34

Hopefully I'm going to have more and more.

0:24:340:24:37

Equidistant from Derby and Nottingham,

0:24:410:24:43

the small Derbyshire town of Langley Mill was where we first saw

0:24:430:24:47

a terraced house with its own entrance to the back,

0:24:470:24:50

great for a terrace.

0:24:500:24:52

Inside was a large open-plan living space which I liked,

0:24:520:24:55

whereas upstairs had plenty of room for improvement.

0:24:550:24:59

There are only currently two bedrooms,

0:24:590:25:02

a large one at the front and a really big one at the back.

0:25:020:25:05

Now, given that you've got a couple of windows here,

0:25:050:25:07

and also the size of it, surely you can either get another bedroom in here or move that bathroom

0:25:070:25:13

and then you can create some kind of utility room downstairs.

0:25:130:25:17

So, two beds could become three,

0:25:170:25:20

which meant there was an opportunity to add value and potentially make money.

0:25:200:25:24

Although that wasn't what first attracted maintenance engineer

0:25:240:25:28

Stephen and his wife Barbara when they bought it for £56,000 at auction.

0:25:280:25:33

We came to look at it the day before it went up for auction.

0:25:340:25:38

-Oh, wow.

-And it just spoke to me.

0:25:380:25:41

-And it sort of looked, "Please, please buy me."

-Aw!

0:25:410:25:45

And it's got a feature on the front that looked as if it's got raised eyebrows.

0:25:450:25:50

And I thought, I like it, it's quirky.

0:25:500:25:54

-# Cos you've got

-Personality

0:25:540:25:56

-# Walk

-With personality

0:25:560:25:58

-# Talk

-With personality

0:25:580:26:00

# Smile... #

0:26:000:26:02

Well, I guess we all like houses for different reasons,

0:26:020:26:05

but if the outside spoke to Barbara, the inside shouted to me,

0:26:050:26:08

"full refurbishment".

0:26:080:26:10

Update, update, update!

0:26:100:26:12

And with plans to do the majority of the work themselves,

0:26:120:26:15

they hoped a £10,000 budget and a nine-month to maybe a year timescale

0:26:150:26:21

would give the property a sparkling, bright new personality.

0:26:210:26:24

# What more can I do? #

0:26:290:26:31

But now over 18 months have passed and we are finally back.

0:26:320:26:36

Well, the yellow paintwork has certainly lifted it,

0:26:400:26:43

giving it perhaps more of a smile now than a frown.

0:26:430:26:47

But what about the inside? What tale will that tell?

0:26:470:26:51

It's clean, modern, it's so much more welcoming.

0:27:000:27:03

New kitchen. New bathroom.

0:27:070:27:09

And what about upstairs?

0:27:130:27:15

Well, two is now three.

0:27:180:27:20

With a large bedroom split into two.

0:27:240:27:26

And the third bedroom now has its own en suite

0:27:290:27:32

and they've even found space for a separate upstairs toilet.

0:27:320:27:35

So what's the story with that?

0:27:350:27:37

# We need to talk... #

0:27:370:27:40

A little light bulb moment, that was.

0:27:420:27:44

He was just nodding off and I just gave him a poke and I said,

0:27:440:27:47

"We can put the toilet and the shower over the entry,"

0:27:470:27:51

because we own the entry.

0:27:510:27:53

And it made sense because all the pipework could go there and if

0:27:530:27:58

anything leaks or anything, we can get at it.

0:27:580:28:01

That was a moment of pure genius from Barbara.

0:28:010:28:04

She also had a hand in turning the garden around,

0:28:040:28:07

landscaping it while Stephen sorted out the shed.

0:28:070:28:10

Repairing it using materials donated by a friend

0:28:100:28:14

and recycling old and new was a bit of a theme in this house.

0:28:140:28:17

# Let's go round again

0:28:170:28:20

# Maybe we'll turn back the hands of time... #

0:28:220:28:25

-The staircase, well...

-It was dark and horrible, wasn't it?

0:28:250:28:29

It was dark and dismal. We thought, well, "How can we make it sort of safe?"

0:28:290:28:33

Because the current regulations are there's got to be some sort of balustrade in it,

0:28:330:28:37

so I thought about it and I looked down the shed

0:28:370:28:39

and we'd got these bits and pieces that came off another staircase,

0:28:390:28:42

so I altered and adapted them...

0:28:420:28:44

And then I painted it silver.

0:28:440:28:46

Painted it all up, and cleaned it all up and that's what it looks like now.

0:28:460:28:49

And with tiles found in the garden used in the fireplace and a rather special clock

0:28:490:28:53

dedicated to what I hope is their favourite TV programme,

0:28:530:28:58

Barbara and Stephen have been imaginative with the materials and space they found in this property.

0:28:580:29:03

But at one point it did seem that all their hard work might turn to dust.

0:29:030:29:08

I started to walk over from the kitchen and I got halfway across

0:29:080:29:13

this room and I heard this creaking and I thought,

0:29:130:29:17

"That doesn't sound very good."

0:29:170:29:19

So I quickly retraced my steps to the doorway

0:29:190:29:21

as this half of the ceiling came down.

0:29:210:29:24

Just one almighty crash.

0:29:240:29:26

Steve rushed down and I was standing in the doorway and I was sort of

0:29:260:29:31

all black and sooty and all of the mess, you know?

0:29:310:29:34

Unfortunately I didn't take a picture of her

0:29:340:29:36

and I should have done, but ever since that...

0:29:360:29:38

-He laughed at me.

-Ever since...

0:29:380:29:40

I couldn't help but laugh, I'm sorry.

0:29:400:29:43

Ever since that happened, for the rest of the job she wore a hard hat.

0:29:430:29:47

-I did.

-THEY LAUGH

0:29:470:29:51

Well, I don't blame her.

0:29:510:29:53

And with Stephen being busy with other work commitments,

0:29:530:29:56

the timescale also bit the dust.

0:29:560:29:58

# Another one bites the dust... #

0:29:580:30:01

But did the budget go the same way?

0:30:010:30:03

# Another one bites the dust... #

0:30:030:30:05

Well, we'd set a budget of about £10,000,

0:30:050:30:09

we've come in I think round about eight and a half for the actual

0:30:090:30:12

renovation and then it was about two and a half for fees and council tax,

0:30:120:30:18

that sort of thing.

0:30:180:30:20

So we aren't much over, really.

0:30:200:30:23

With an £11,000 spend on top of their £56,000 purchase price,

0:30:250:30:29

Barbara and Stephen have £67,000 invested into this house.

0:30:290:30:34

And it's certainly been quite a journey to get it all finished,

0:30:340:30:37

but was it worth it?

0:30:370:30:39

What did two local property experts think?

0:30:390:30:42

I think they've made a really nice job.

0:30:440:30:47

It's very clean, very tidy, very neutral,

0:30:470:30:49

but got a warm sort of cosy feel to it.

0:30:490:30:52

I think it would be really nice for a family.

0:30:520:30:54

My first impressions of the renovations are that they've all

0:30:540:30:57

been done to a good standard and I'm really impressed

0:30:570:30:59

with the changes made to this property.

0:30:590:31:01

The fireplace is really nice.

0:31:010:31:03

It's got a rustic look which is very in at the moment.

0:31:030:31:05

My favourite feature is the window seat.

0:31:050:31:08

I think the conversion back to a three-bedroom, which was what it was originally built as,

0:31:080:31:12

will certainly add value whether it be to the rental market or to the sales market.

0:31:120:31:15

Barbara and Stephen want to hang on to this house

0:31:180:31:21

and see it as part of a long-term pension plan.

0:31:210:31:24

But currently how much is their £67,000 investment worth?

0:31:240:31:28

For resale I think the property could achieve

0:31:290:31:32

somewhere in the region of £100,000.

0:31:320:31:34

If I were looking to offer this property to the resale market

0:31:340:31:37

I would look to offer it somewhere in the region of 90 to £95,000.

0:31:370:31:41

So a possible 23 to £33,000 pre-tax profit on the resale market.

0:31:410:31:47

But what about the all-important rental potential?

0:31:470:31:50

As a rental I think you'd probably get around £475 per calendar month.

0:31:530:31:57

I would suggest that if this property were offered

0:31:570:32:00

to the rental market it would achieve somewhere in the region of 525 to £550 per calendar month.

0:32:000:32:05

-Quite happy with that.

-On the top end, yes.

0:32:050:32:09

So quite a variation on those rental figures but an average around £500

0:32:090:32:13

per calendar month would see a rental yield close to 9% which,

0:32:130:32:17

as a pension fund, is pretty good.

0:32:170:32:20

So, for Barbara and Stephen, are there more property developments on the horizon?

0:32:200:32:25

No more plans to do any more, or I didn't have...

0:32:280:32:31

..but my daughter bought me a house at Christmas...

0:32:330:32:36

..but it's a doll's house.

0:32:380:32:40

So hopefully that won't take 17 months!

0:32:400:32:44

THEY LAUGH

0:32:440:32:46

Now, roll your mind back to 2014 and the historic suburb of Milton Regis

0:32:490:32:56

in Kent, where Lucy saw a property guided

0:32:560:33:01

between 85 and £90,000 that was the order of the day.

0:33:010:33:04

Inside you can tell straightaway this floor here

0:33:040:33:07

was used as a hot food takeaway.

0:33:070:33:09

Right here was the servery,

0:33:090:33:12

and through here I think this may have been the restaurant area.

0:33:120:33:16

I wouldn't fancy ordering my food here as it is at the moment.

0:33:160:33:20

A little bit tatty and needs everything doing.

0:33:200:33:23

Through here you've got the kitchen area.

0:33:230:33:25

That's quite a big space and I'm sure some of that equipment still might work.

0:33:250:33:30

But as a hot food takeaway,

0:33:300:33:32

this floor has A5 business classing,

0:33:320:33:35

which gives you more flexibility than if it had previously

0:33:350:33:38

been used as a shop for example.

0:33:380:33:41

Now, that is because under current regulations

0:33:410:33:44

you're allowed to convert it into a shop, a restaurant,

0:33:440:33:46

or a cafe without applying for change of use from the local authority.

0:33:460:33:51

Now, there are plenty of other commercial businesses

0:33:510:33:54

all along the street so I would advise doing your research

0:33:540:33:57

and finding out what sort of business really would work best here.

0:33:570:34:01

There was a lot on the menu at this former takeaway.

0:34:050:34:09

Directly above the commercial unit was living accommodation.

0:34:090:34:12

On the first floor were three rooms to the front of the building and one

0:34:140:34:19

that had no windows, which connected the two at the other end.

0:34:190:34:22

Through this room was a hall that led to a back bedroom followed by a

0:34:240:34:28

bathroom and another larger room.

0:34:280:34:31

The top floor had four rooms but with no kitchen or bathroom.

0:34:320:34:37

Lots of plumbing would be needed for the most obvious option

0:34:370:34:40

of converting the top two floors to self-contained flats.

0:34:400:34:44

You'd also need to create separate access

0:34:460:34:49

as the only way in was through the commercial unit.

0:34:490:34:52

But Lucy had some ideas for the mixed-use premises.

0:34:520:34:55

What about taking this whole property and turning it into residential?

0:34:580:35:02

How about a couple of houses?

0:35:020:35:04

However, there is something I haven't told you yet

0:35:040:35:07

that could affect planning permission here.

0:35:070:35:09

This property is Grade II listed.

0:35:110:35:13

Now, don't get too excited because that means there'll be extra

0:35:130:35:16

restrictions on any changes you want to make

0:35:160:35:19

on the inside as well as the outside.

0:35:190:35:22

That listed building status meant this was likely to be an expensive

0:35:230:35:27

renovation, and whoever bought it would need to keep in close contact

0:35:270:35:31

with the local conservation officer

0:35:310:35:34

to ensure all building work was sympathetic to the original design.

0:35:340:35:37

# You can try to please me

0:35:400:35:42

# But it won't be easy

0:35:420:35:45

# And you don't stand an outside chance

0:35:450:35:47

# Don't stand an outside chance

0:35:470:35:48

# Don't stand an outside chance

0:35:480:35:51

# But you can try... #

0:35:510:35:53

So lots of space to play with but would that listed building status

0:35:530:35:57

make the bidders go cold when it went under the hammer?

0:35:570:36:00

Another takeaway premises but a big 3-story commercial residential and

0:36:030:36:08

well worth the refurb that's needed.

0:36:080:36:10

Start me, where you will, on that one.

0:36:100:36:12

Really attractive guide price, I thought.

0:36:120:36:14

Give me 80, then, got to start somewhere.

0:36:140:36:16

80,000... 80,000, I'm obliged.

0:36:160:36:19

At 82, 85, 85, 87.

0:36:190:36:22

I've got 85,000 and I'm looking for 87.

0:36:220:36:25

You can't believe it's going to be sold for that but it will be.

0:36:250:36:28

I will set it for the first time.

0:36:280:36:30

I will... 87, thank you.

0:36:300:36:31

87. At 90.

0:36:310:36:33

92, 92, 95, 97, 97.

0:36:330:36:40

And 100, 102, 102 and five and seven.

0:36:400:36:47

107. 107.

0:36:470:36:49

If you don't buy it, what are you going to do with those men that were booked to go in there Monday?

0:36:490:36:53

107, can I say? Well, you've completed my money, of course.

0:36:530:36:56

107, 110? 110?

0:36:560:36:59

No? 108, because you've been with it all this time. 108?

0:36:590:37:02

Put in a white screen instead of a coloured one. That'll save a grand.

0:37:020:37:05

108, 109?

0:37:050:37:07

You could buy it for that. 109?

0:37:070:37:09

110? It's just £1,000 now.

0:37:090:37:12

It's not a big gap. For the first time at £109,000.

0:37:120:37:17

Second time at £109,000.

0:37:170:37:19

Third and final time.

0:37:190:37:21

Yours at 109, G280, thank you.

0:37:210:37:24

# I say... Take me out... #

0:37:240:37:29

Taking away the listed property from auction for 109 grand was Paul.

0:37:290:37:34

Paul, who runs his own building firm,

0:37:340:37:36

had already picked up his main dish in the shape of a neighbouring

0:37:360:37:40

property for 130,000 before he went for the side dish,

0:37:400:37:45

but unfortunately he broke some Homes Under The Hammer golden rules.

0:37:450:37:49

I didn't bother to investigate inside or look into any of the details of it,

0:37:490:37:53

but I turned up at the auction and the bidding was going so slowly

0:37:530:37:57

that I bought it on impulse.

0:37:570:38:00

You just bought it for 109,000?

0:38:000:38:02

-Yeah. Yeah.

-Were you a bit shocked and surprised?

0:38:020:38:05

Yeah, I was a bit because I hadn't gone there intending to buy it at all.

0:38:050:38:09

So I just spent, you know, over a quarter of million pounds just on impulse.

0:38:090:38:14

This impulse buy was hardly a packet of sweets at the checkout.

0:38:140:38:18

So with two commercial premises,

0:38:180:38:20

two times two residential storeys and a barn out back,

0:38:200:38:25

Paul had a lot of property.

0:38:250:38:26

So come on then, tell me. What are your plans?

0:38:280:38:30

Subject to planning, this will turn into two houses.

0:38:300:38:34

The shop that I bought next-door we turned into two three-bedroom houses.

0:38:340:38:37

And hopefully the barn will turn into a pair of semis.

0:38:370:38:39

How are you going to do that, and how are you going to do that without

0:38:390:38:42

tampering too much, because it is listed?

0:38:420:38:46

It will actually improve it because it was always two properties

0:38:460:38:49

and they took the spine wall out to make it into one.

0:38:490:38:52

So we will put that back and that will improve the stability of the building.

0:38:520:38:57

So not flats?

0:38:570:38:59

No, we originally thought about flats but the council's policy is to turn shops into houses.

0:38:590:39:03

But because it's listed I'm sure you're going to have a

0:39:030:39:05

lot of involvement with the planners, aren't you?

0:39:050:39:08

Yeah, yeah, the conservation officer will be involved from the beginning.

0:39:080:39:12

And we will get a lot of delays

0:39:120:39:14

talking to them about what they will allow and what they won't allow.

0:39:140:39:19

Paul seemed confident he knew what he was getting into.

0:39:190:39:22

After all, he did have extensive experience

0:39:220:39:25

dealing with English Heritage and period properties.

0:39:250:39:29

He initially thought the building work would take about six months

0:39:290:39:33

and had 80 grand to spend on each unit

0:39:330:39:35

but when we returned almost three years later,

0:39:350:39:39

things hadn't exactly gone to plan.

0:39:390:39:40

# Maybe sometime sooner or later

0:39:420:39:47

# But I don't think I'm ready yet

0:39:490:39:53

# Not feeling up to it now

0:39:550:40:00

# Just not that steady yet

0:40:020:40:04

# And I don't need you telling me how... #

0:40:070:40:11

Sadly, nothing about this project had been simple.

0:40:170:40:19

And the reason for the delay was of course because the building was Grade II listed.

0:40:190:40:24

It's been a bit of a roller-coaster.

0:40:270:40:29

We kept thinking that we'd reached a point where we could go ahead

0:40:290:40:33

but we kept getting rejections.

0:40:330:40:36

Normal planning permission only takes eight weeks and...

0:40:360:40:40

..this took three years, which kind of set us back a bit.

0:40:420:40:45

During this time we've had problems with the security,

0:40:450:40:49

we've had three arson attacks.

0:40:490:40:51

People have been in and stolen all the cables and pipework.

0:40:520:40:56

The fire damage wasn't only restricted to this house.

0:40:570:41:01

The other lot he bought next-door had its barn set on fire and all the

0:41:010:41:05

buildings suffered from the same delay in planning.

0:41:050:41:08

But Paul and his team were granted permission

0:41:090:41:11

to strip the former takeaway restaurant back to the bare brick

0:41:110:41:14

so they could see the condition of the old timber-framed building.

0:41:140:41:18

Sadly, hiding underneath the plaster were a few nasty surprises.

0:41:190:41:23

We've got the main structural beam running through

0:41:260:41:30

but the valley has given way over the years and rotted this beam out.

0:41:300:41:35

So this beam wasn't sitting on anything and

0:41:360:41:40

this is the, this is the structure of the beam.

0:41:400:41:43

It's no longer serving its purpose and we need to replace this completely.

0:41:430:41:51

And pick up this beam at the same time.

0:41:510:41:53

# Stay with me I need support... #

0:41:530:41:57

Once the beams were sorted Paul would be able to get down to fitting out the houses.

0:41:570:42:01

On the ground floors, there would be a lounge and a modern kitchen

0:42:010:42:05

with direct access to a small garden at the back.

0:42:050:42:09

The first floor was going to have two bedrooms

0:42:090:42:12

and a family sized bathroom with the other two bedrooms in the attic.

0:42:120:42:17

Paul had spent 20 grand of his budget so far

0:42:170:42:20

and expected to spend another 120 on the rest of the project.

0:42:200:42:24

This was well under his initial budget of 80 grand per unit.

0:42:240:42:28

So with the budget on track and planning passed,

0:42:280:42:32

would Paul be able to stick to his original six-month build time?

0:42:320:42:36

The timescale should be the same from now,

0:42:370:42:41

providing that we don't come up against any problems

0:42:410:42:46

with the authorities.

0:42:460:42:48

We've got a bit of a challenge

0:42:480:42:50

because the building regs have different requirements

0:42:500:42:54

to the planning people.

0:42:540:42:56

So we have to try and meet the building regs

0:42:560:42:59

but at the same time not destroy the fabric of the building.

0:42:590:43:03

More challenges to come on this character property.

0:43:030:43:06

So would Paul be able to satisfy both building regs and planning

0:43:060:43:09

and manage it all in his timescale?

0:43:090:43:11

You can find out later in the show.

0:43:110:43:14

Well, earlier on in the show we saw how one property turned out.

0:43:230:43:26

But what about the other two?

0:43:260:43:28

Yes, we've still got two more to see,

0:43:280:43:30

so let's find out what happened.

0:43:300:43:31

It was in Tylorstown in the Rhondda Valley

0:43:340:43:37

where we first saw a three-bed, three-storey mid-terraced house

0:43:370:43:41

built into the hill with a kitchen on the bottom floor,

0:43:410:43:44

living space at street level

0:43:440:43:46

and the three bedrooms on the top floor.

0:43:460:43:49

There were certainly some ups and downs with this property.

0:43:490:43:53

Now THAT'S a slope.

0:43:530:43:55

And in addition, there were signs of damp.

0:43:550:43:59

So there were a few issues to contend with in the house.

0:43:590:44:02

Not that married couple Joanna and Romel would have known any of that,

0:44:020:44:07

having bought it at auction for 40 grand unseen

0:44:070:44:10

as a spur of the moment purchase and their first major renovation.

0:44:100:44:15

What made you say yes, I'm going to go for it?

0:44:160:44:19

I'm kind of an optimistic person, if that makes sense.

0:44:190:44:22

And I know it's in terms of investment and business

0:44:220:44:25

you need to be more bold and do your homework and things,

0:44:250:44:30

but I got something like a gut feeling

0:44:300:44:32

and I really felt that this should be a good thing.

0:44:320:44:35

# Oh sometimes

0:44:350:44:37

# I get a good feeling

0:44:370:44:39

# Yeah

0:44:390:44:41

# I get a feeling that I never, never, never, never, had before

0:44:430:44:46

# Oh, no, I get a good feeling. #

0:44:460:44:48

With a proposed budget of 10 to 15 grand

0:44:480:44:51

and a timescale of two to three months,

0:44:510:44:54

fingers crossed that gut feeling was right.

0:44:540:44:57

Well, nine months on, and it's time to find out.

0:44:570:45:00

So, as you walk in we've knocked down the hall wall,

0:45:110:45:14

we've made it open-plan.

0:45:140:45:16

We tried to put laminating but the floor was a bit uneven,

0:45:200:45:24

so we had to sand it off.

0:45:240:45:26

And along with the lounge, the bathroom on this floor

0:45:270:45:30

has also been completely refurbished.

0:45:300:45:32

Going upstairs in the three bedrooms,

0:45:350:45:37

we have renovated it all thoroughly.

0:45:370:45:39

Put new central heating everywhere.

0:45:390:45:42

And with no layout changes,

0:45:470:45:48

the bedrooms remain at the top of the house,

0:45:480:45:51

quite a distance from the kitchen.

0:45:510:45:53

Then, downstairs, the whole kitchen as you can see,

0:45:550:45:59

is renovated to a high standard, I believe. It's all new kitchen.

0:45:590:46:03

The kitchen really looks great and the damp here has been eliminated

0:46:050:46:09

with a damp proof plaster and paint.

0:46:090:46:12

And outside garden, we cleared up as much as we could.

0:46:140:46:19

And with a small patio area to sit and soak up the views,

0:46:250:46:29

this house definitely has more ups than downs.

0:46:290:46:33

# Sometimes I get a good feeling. #

0:46:350:46:37

The biggest trouble was the time.

0:46:390:46:41

Timekeeping with the children's schools, nursery, our job,

0:46:410:46:47

and also the travelling far away.

0:46:470:46:52

Yes, living 90 miles away with a two-hour journey time,

0:46:520:46:56

this house wasn't exactly on their doorstep,

0:46:560:46:59

so a lot of coordination had to be done from afar.

0:46:590:47:02

And though they did try to get to the house at least once a week,

0:47:040:47:07

their role was more hands-off than hands-on and talking of roles,

0:47:070:47:12

what did they do about those sloping floors in the bedroom?

0:47:120:47:16

For the sloping floors on the upstairs bedrooms,

0:47:160:47:20

we've done a bit of research

0:47:200:47:22

and asked a few neighbours if they got the same.

0:47:220:47:26

This road unusually is on the mountainside

0:47:260:47:29

so we just wasn't bothered much to do it up,

0:47:290:47:33

where it was costing us also a bit of extra money,

0:47:330:47:36

so we just left it as it is and tidied it up.

0:47:360:47:41

# Keep on rolling

0:47:410:47:43

# Keep on rolling. #

0:47:430:47:46

And that was probably for the best because property developing

0:47:490:47:52

is all about trying to keep the bottom line in check

0:47:520:47:55

and seeing the bigger picture.

0:47:550:47:57

So, did they keep to their 10 to 15 grand budget?

0:47:570:48:00

We did to spend over that, to be honest,

0:48:000:48:03

because we had to open up the living room

0:48:030:48:07

and dealing with the damp and also the garden was full of rubbish.

0:48:070:48:12

We had to lay patio and things

0:48:120:48:16

so altogether I believe we touched about the 20 grand mark.

0:48:160:48:22

And a 20 grand spend on top of the 40,000 purchase price

0:48:250:48:30

means that Romel and Joanna have 60 grand invested here.

0:48:300:48:34

So have they got their changes right?

0:48:340:48:36

What do two local estate agents think?

0:48:360:48:39

First, the agent who saw it last time.

0:48:390:48:41

I've come back to the property a second time.

0:48:430:48:45

They've done some work to it and the work is average.

0:48:450:48:49

It's decent enough for a rental.

0:48:490:48:51

The standard of finish, first impressions are pretty good.

0:48:510:48:54

I've seen much worse, I've seen slightly better,

0:48:540:48:56

but I think it's overall a very good standard of finish.

0:48:560:48:59

I think with the layout changes it's pretty decent.

0:48:590:49:01

Some people will like it, some people won't, but I think it's quite modern living now.

0:49:010:49:05

I like the original flooring. It's nice that they've kept that touch. It's nice and open-plan.

0:49:050:49:10

The kitchen being downstairs and separate is, you know, it maximises use of space.

0:49:100:49:14

Well, let's hope the quality of the finish isn't a big issue,

0:49:140:49:18

as this has always been a resale project for Romel and Joanna.

0:49:180:49:22

So will they see much profit in their 60 grand investment?

0:49:220:49:26

I think this property would sell at the current market

0:49:260:49:29

for 75 to £80,000.

0:49:290:49:32

I would value the property between 85 and £90,000.

0:49:320:49:35

The agent who said 75 to 80,

0:49:350:49:38

I believe that is reasonable and that's what we're looking for

0:49:380:49:42

at the moment.

0:49:420:49:44

But on the other hand, 85 to 90, if we can get that, wow,

0:49:440:49:49

that would be really great.

0:49:490:49:52

So, a possible 15 to 30 grand pre-tax profit on the resale market,

0:49:520:49:57

and the agents also thought a rental figure in the region

0:49:570:50:02

of £420 per calendar month would be possible,

0:50:020:50:05

which equates to a yield of around 8%,

0:50:050:50:08

which wouldn't be bad as a last resort.

0:50:080:50:11

But how does Romel feel about their first major property renovation?

0:50:110:50:16

From starting with the buying, that was...

0:50:160:50:19

We had no clue that we were buying a house, and then we bought a house.

0:50:200:50:24

Now it's everything done up, waiting to sell.

0:50:240:50:29

It's a fantastic experience, first time,

0:50:290:50:32

and hopefully I'm going to have more and more.

0:50:320:50:35

With roots that can be traced back to Roman times,

0:50:390:50:42

the Kent village of Milton Regis is steeped in history,

0:50:420:50:46

and it was here that we had our own little bit of history to catch up on

0:50:460:50:49

in the form of a Grade II listed property

0:50:490:50:53

that Lucy first saw in 2014.

0:50:530:50:55

Formerly two town houses,

0:50:550:50:57

the large lot had been combined to accommodate a takeaway restaurant

0:50:570:51:01

downstairs, with residential accommodation upstairs.

0:51:010:51:05

And it was bought for £109,000 at auction by experienced local builder

0:51:050:51:09

Paul, although that was just half the story.

0:51:090:51:13

-Have you bought anything else locally?

-The shop next door.

0:51:130:51:16

And he was hoping to convert the two former shops into four houses,

0:51:160:51:20

with a budget of £80,000 per house.

0:51:200:51:22

But when we first returned,

0:51:220:51:24

it was a case of best laid plans and all that.

0:51:240:51:27

Normal planning permission only takes eight weeks,

0:51:290:51:32

and this took three years, which kind of set us back a bit.

0:51:320:51:38

Yeah, you could say that, Paul!

0:51:380:51:40

But finally, after dealing with all the planning and listed building

0:51:400:51:44

consent, as well as the buildings nearly being burned down,

0:51:440:51:47

it was time to get the show on the road.

0:51:470:51:49

# Get this party started

0:51:490:51:53

# Get this party started right now. #

0:51:530:51:58

And now, a further ten months on, we're back.

0:52:000:52:03

Outside, and we have four smart doors.

0:52:050:52:08

So, four completed houses? Here's hoping...

0:52:080:52:12

Well, inside the former Chinese restaurant,

0:52:150:52:18

everything has been taken away and the property has now been equally

0:52:180:52:22

divided again into two houses.

0:52:220:52:24

In the left-hand house,

0:52:270:52:30

there's a lounge at the front and a large open-plan kitchen at the back,

0:52:300:52:33

with patio doors to a garden.

0:52:330:52:37

Upstairs on the first floor are two bedrooms and a bathroom,

0:52:370:52:41

all with a lovely mix of modern and old.

0:52:410:52:44

And on the top floor are two further bedrooms.

0:52:480:52:51

Paul's done a great job here and I think he's pleased, too.

0:52:510:52:55

Yeah, I've decided to move here.

0:52:570:52:59

I live on a farm at the moment, which is very nice,

0:52:590:53:02

but there's a nice village community here

0:53:020:53:05

and it's a good location and everything.

0:53:050:53:09

And the buildings, it's like being part of history living here.

0:53:090:53:14

# History so strong

0:53:160:53:19

# History so strong

0:53:190:53:22

# History so strong. #

0:53:220:53:26

So this will be Paul's home,

0:53:260:53:28

while in the other half of the building there's a four-bedroom

0:53:280:53:32

house which has the kitchen in the front upstairs,

0:53:320:53:35

a large lounge at the rear

0:53:350:53:38

and then four bedrooms and bathrooms across the upper two floors.

0:53:380:53:42

# History so strong. #

0:53:420:53:45

Paul also purchased the next-door building,

0:53:470:53:50

and he's converted that into two three-bed houses.

0:53:500:53:53

And the good news for him is he's found tenants for both of them.

0:53:530:53:57

But it did mean we were unable to film inside.

0:53:570:54:01

All four properties share a large parking area at the rear.

0:54:010:54:04

Wow, this has been quite some project,

0:54:040:54:07

but after all the delays getting the consent,

0:54:070:54:09

were there many problems doing the actual work?

0:54:090:54:13

# History so strong. #

0:54:130:54:15

Once the structure was taken care of,

0:54:150:54:17

once we knew we had a stable building,

0:54:170:54:20

then it was just pretty much standard building work,

0:54:200:54:23

apart from not using a level,

0:54:230:54:27

because nothing's square or straight.

0:54:270:54:30

# But I'm actually good

0:54:300:54:33

# Can't help it if we're tilted

0:54:330:54:36

# I am actually good

0:54:360:54:38

# Can't help it if we're tilted. #

0:54:380:54:41

But if the buildings themselves weren't always on the level,

0:54:410:54:44

did Paul manage to balance the books,

0:54:440:54:46

with a proposed total budget of £320,000 across the four houses?

0:54:460:54:52

I think we probably spent about 360 on the four properties,

0:54:520:54:56

and there's still a little bit more to spend.

0:54:560:55:00

By the time we've finished, I think we'll probably be 10% over that.

0:55:000:55:03

And with the total purchase price for the two separate buildings

0:55:030:55:07

being £239,000, along with the likely £400,000 spent

0:55:070:55:11

on the renovation work,

0:55:110:55:13

Paul will have £639,000 invested into this project.

0:55:130:55:18

And having taken nearly four years, was it worth the wait?

0:55:180:55:22

What do two local estate agents think?

0:55:220:55:24

The changes have been very well done.

0:55:240:55:27

The layouts flow really nicely.

0:55:270:55:29

I like the kitchen's open-plan,

0:55:290:55:30

and the little snug lounges at the front work really well as well.

0:55:300:55:34

It's amazing. They've maintained some of the traditional features,

0:55:340:55:37

like the beams and the fireplaces.

0:55:370:55:39

But he's added great value by using every space he can,

0:55:390:55:44

like with the en suites, and come up with a really, really nice product.

0:55:440:55:49

With one of the houses being Paul's new home,

0:55:510:55:53

he intends to rent out the other three properties,

0:55:530:55:56

but he does have a sizeable £639,000 investment tied up here.

0:55:560:56:01

The agents agree on the valuations for both types of houses,

0:56:010:56:04

so is there a profit to be made?

0:56:040:56:07

For the two four bedroom properties I would value at £350,000 each.

0:56:070:56:12

I would market the two three-bedroom properties at £300,000 each.

0:56:120:56:17

So, the combined development is worth £1.3 million,

0:56:170:56:22

which could see a potential pre-tax profit of £661,000.

0:56:220:56:28

Wow! But for Paul, it's the rental income he's interested in.

0:56:280:56:32

We'd market the two four-bedroom properties

0:56:320:56:36

at £1,375 per calendar month,

0:56:360:56:39

and we'd market the two three-bedroom properties

0:56:390:56:42

at £1,100 per calendar month.

0:56:420:56:45

If I was to market the four bedrooms,

0:56:450:56:48

on the rental market they'd be £1,200 per calendar month each.

0:56:480:56:51

If I was to put the three-bedroom properties on the rental market,

0:56:510:56:55

I'd value them at £1,000 per calendar month each.

0:56:550:56:58

I think the original expectations was about 1,200 per property,

0:56:580:57:04

so that's good.

0:57:040:57:06

We're in between, so that's very good.

0:57:060:57:09

An average rent of £1,200 per calendar month

0:57:090:57:12

would see a yield of around 9% per property.

0:57:120:57:15

Not a bad return, even if it did take a while to get there.

0:57:150:57:19

Mind you, four years' wait for a property

0:57:190:57:23

that in part is 500 years old, well, it's just a drop in the ocean.

0:57:230:57:27

I've enjoyed working on this property,

0:57:280:57:31

and there's more of a connection to history

0:57:310:57:34

and leaving something behind on working on a period property.

0:57:340:57:37

So although there's challenges with it,

0:57:370:57:40

I would always choose something with character rather than a box.

0:57:400:57:46

# I'm going to be

0:57:460:57:49

# A history maker in this land

0:57:490:57:53

# I'm going to be

0:57:550:57:57

# A history maker in this land. #

0:57:570:58:02

We'll have more action from the auction rooms around the country very soon.

0:58:070:58:12

Yes, you won't want to miss it.

0:58:120:58:13

Make sure you join us then for more Homes Under The Hammer.

0:58:130:58:16

-Bye-bye.

-Goodbye.

0:58:160:58:18

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