Episode 78 Homes Under the Hammer


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Episode 78

A couple of terraces with a traditional layout in Derbyshire, a terrace cut into the side of a hill in Wales and a Grade II listed property in Kent are sold at auction.


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Transcript


LineFromTo

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

0:17:290:17:31

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

0:17:310:17:33

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

A couple of terraces with a traditional layout in Langley Mill in Derbyshire, a three-storey terrace cut into the side of a hill in Tylorstown in Wales and a Grade II listed property in Milton Regis in Kent are all sold under the hammer. Martin Roberts, Martel Maxwell and Lucy Alexander talk to the new owners and follow the progress on their developments.