Homes Under the Hammer Season 28 Episode 47

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Transcript

00:00Hello and welcome to the show. Now magazines and social media are full of all sorts of incredible houses, sparkly, spangly and often way out of people's price range.

00:11However, there is a way that you can get your hands on really exciting, very affordable properties and that's to head down to your local property auction.

00:30Well property auctions happen up and down the country and more and more of them are actually online these days so you don't even have to travel from your home to make a bid.

00:59So, what did the buyers on today's show bid on?

01:04I'm off to the bank at a property in Northampton.

01:07Well I often say, you know, I consider property to be a little way to save.

01:14Dion finds more than he bargained for at a house in Leeds.

01:18We have got stairs. Stairs leading to... Well let's find out shall we?

01:25And how much can be salvaged at this Coventry lot?

01:29Another question you have to ask yourself before you start spending money on new stuff.

01:36All these properties have been sold at auction and we'll find out who bought them and what they paid for them when they went under the hammer.

01:42Sold at the back of the ring.

01:44In medieval times, Northampton's geographical position in the middle of England made the town a convenient point for political, religious and military gatherings.

02:01King John often stayed at Northampton Castle and, to keep his cash handy, he even moved the treasury here in 1205.

02:11Property prices have increased significantly since the 13th century, but you won't have to spend a king's ransom at our first auction property.

02:19So two miles north of Northampton city centre and I am in Sunnyside.

02:25I'm going to break out into a song on the sunny side of the street.

02:29Well actually it's not too bad.

02:31Nice little area and I'm here to see a mid-terrace, two-bedroom, guide price £94,000.

02:40That's it. Let's have a look inside.

02:42So, we've got a little entrance area here and then through into your living room.

02:55I mean, it's obviously been stripped out for you.

03:00A few cracks on the walls.

03:03I don't think that's anything too serious.

03:05An old fire.

03:06I mean, it's tired, it's dated.

03:08Oh look, here we go.

03:09It even comes a little piggy bank.

03:10Well, I often say, you know, I consider property to be a little way to save.

03:17So, this comes with the best of both worlds.

03:20A little piggy bank to put your savings in and the house itself.

03:24Absolutely brilliant.

03:26But anyway, front room there, a good size.

03:29Yeah, it's fine.

03:30And then through to the kitchen.

03:32Not in bad condition.

03:34In fact, it looks like some of this has been relatively recently replaced,

03:37judging by the stickers over the oven there.

03:42I think this is really nice.

03:43This is really interesting.

03:45Kitchen recently to be done.

03:47It's great.

03:47I've not seen anything I don't like yet.

03:49The same can't be said for the back garden, which is in a right old state.

03:55But it is pretty large, which gives you the obvious option of extending,

03:59or at least erecting a conservatory.

04:03There is one potential hurdle to that plan.

04:06This manhole cover sits close to the house

04:08and would be in the way of any potential construction.

04:11So you would need to seek advice about what, if anything, could be done about it.

04:18So up here, and the bathroom doesn't look to be in too bad a condition.

04:22And then you've got two bedrooms.

04:24The rear one, it's a medium-sized double,

04:26and then the front, a bit bigger.

04:29I mean, I think there might even be space, naturally,

04:31to put something there in terms of an en suite.

04:34You've got the window.

04:35I think you get a toilet in there, at the very least,

04:37and maybe even a shower.

04:40So, yeah, all in all, it's not a bad condition,

04:43it's a good size, it's a nice location.

04:46It just ticks all the boxes.

04:50But there's one more box to tick, that of a local property expert.

04:54We invited one from the auction house that sold the lot

04:58to give us his thoughts on this two-bed guided at £94,000.

05:03The house, it is what it is.

05:05It's not too bad at all.

05:06It needs a bit of work, but mainly cosmetic.

05:08The basics are already in place.

05:10It's got gas-central heating, double-glazed windows.

05:13The kitchen and bathrooms are fairly basic, but OK.

05:17But it does need TLC throughout,

05:19so good decorating, carpeting,

05:21and the gardens certainly need tidying up.

05:23The positives of the property are probably location,

05:25first and foremost.

05:27Commuting is really good.

05:28You've got plenty of transport links.

05:30The Northampton Town Centre is close by.

05:32The motorway network and trains to London run very regularly.

05:38So how much does he think the house could be worth once fully renovated?

05:43I'd expect a sale price somewhere in the region of £190,000

05:46and a rental income of around £1,000 per calendar month.

05:50Well, there's a lot to like about this property,

05:53and I think for a relatively small amount of money,

05:56you could create an absolutely lovely family home

05:59or a great rental opportunity.

06:01Let's see who bought it when it went under the hammer.

06:05This lot was part of a remote auction,

06:08with bids taking place online.

06:10Are we all done?

06:11Yes, we are.

06:12That's yours.

06:13The successful bid of £127,500 was made by Ola,

06:20who lives in East London.

06:23A bit of a commute up to Northampton,

06:25so why buy here?

06:27I met him to find out more.

06:30Ola, nice to meet you.

06:32Congratulations.

06:32Tell me why you wanted to buy this house.

06:34So I wanted to get this property

06:36just to increase my property portfolio

06:40and also to just focus a bit more on Northampton.

06:43OK.

06:43Yeah, because I have a previous property here in Northampton

06:46which I'm managing and it's doing well,

06:48so I'm like, you know what?

06:49The devil you know is better than the angel you don't know,

06:51so let me just make this like a base for my investment.

06:54Yeah, for sure.

06:54What do you like about Northampton?

06:56Oh, to be honest, Northampton is not too far from London,

07:00and you have a bit of diverse people in Northampton

07:02doing different work,

07:03so you get to meet different people.

07:05It's not too far from the hospital,

07:07it's not too far from the uni,

07:09and it's not too far from the city centre,

07:11so it's a good place where I can get different people

07:14to move in and move out when it's properly done.

07:16Tell me about your property developing experience then.

07:19I started going into property about two and a half years ago.

07:22Oh, right.

07:23And, you know, because then, you know,

07:26I felt, you know what, I need to build a portfolio for myself.

07:29What were you doing before that?

07:30Yeah, I'm a compliance consultant.

07:32Oh, OK.

07:32I work in the financial sector, so I just felt, you know what,

07:35let me get something apart from my nine-to-five.

07:38So then I went into properties there,

07:40set up my own limited company.

07:42OK.

07:42So then keep building the portfolio under the company.

07:45Wow, and how have you got on in two and a half years?

07:47Yeah, it's been pretty much good.

07:49I can say this is my fourth one now in the portfolio.

07:53OK, congratulations.

07:54Yeah, we'll keep going.

07:55Great.

07:55What was it about this house that you particularly liked then?

07:59This house, to be honest with you,

08:00I never viewed it before buying.

08:03So because I wanted to buy a different property,

08:05but when I was bidding, the price was going over my budget,

08:11so I'm like, you know what, there's no point.

08:13So I saw this eight nights before the auction,

08:14so I had to sit down on my bed,

08:17go through the legal program myself

08:19and just to understand, you know,

08:21the do's and don'ts in the property and see.

08:23And I just looked at the floor plans

08:25from the other property that was sold

08:26and just see what I can use the property for

08:29and I decided to just, you know, click on the button.

08:32So what did you think when you saw it for the first time

08:34after you'd bought it?

08:35Yeah, when I walked in, I saw, OK, a few cracks here and there.

08:39Then, of course, when I was buying it,

08:40I saw the EPC was E,

08:41so I knew when I get in,

08:43I'm definitely going to take it back to BIC.

08:44So it was no more of, oh, is it all right?

08:47Is it cosmetic work?

08:48Because I know I'm going to take it back to BIC.

08:50You are?

08:51Yeah.

08:52OK.

08:53So talk to me about what you're going to do with it then.

08:56So at the initial stage,

08:58I was thinking just living it the way it is,

09:01you know, renting to a family.

09:03But because I've got other tenants,

09:05I've been saying, oh, have you got one bed,

09:07have you got like a self-contained flat?

09:09I'm like, oh, no, no, OK, you know what?

09:12Then I spoke to my architect and structural engineer

09:14and I said,

09:15is it possible to turn this to a one bed flat each?

09:18And they're like, oh, yeah, it's something that can be done.

09:20So we drew up our plan.

09:21It's been submitted to the council now.

09:23So hopefully in the next few months,

09:25I should know what the result is going to be.

09:26So if that's not approved,

09:28then we go back to family let.

09:30Two one bedroom flats?

09:32Yes.

09:32How are you going to do that?

09:33So doing that, we've looked at the measurement,

09:36the room requirement for each flat.

09:38So like this wall is going to be moved a bit forward

09:41and the kitchen will be turned to a room.

09:44Then there will be an en suite,

09:46just a shower room at the other side of the kitchen.

09:48Then the kitchen will definitely turn to a room

09:50and this will be an open plan kitchen diner.

09:53Wow.

09:53So the entrance is going to be closed up

09:56and we'll have a new entrance on the side

09:57for the flat downstairs.

09:59Wow.

09:59So that's going to be a straight flat upstairs

10:01because when we looked at putting an extra opening there,

10:05it was going to be too tight

10:06to have two doors and that little space.

10:08Okay.

10:08So that flat is going to be straight up

10:10and there will be a door outside there

10:12for the second flat.

10:13That really is thinking outside the box, isn't it?

10:16Yeah, yeah, yeah.

10:17I guess it's what it is.

10:18And that's all driven by what your clients are saying they want?

10:21Yeah, yeah, yeah.

10:22So for me, I look at what clients want

10:24because I've got clients that have stayed in my properties

10:27and they're like,

10:28oh, you know what, I'll prefer this

10:29because most of them, they come single

10:30then when they want to bring their family

10:32or they want to get married,

10:33they're like, oh, you know what,

10:34I want to be of privacy.

10:36So I'm like, okay.

10:36Wow.

10:37I'll focus on what the market wants.

10:40How will you split the garden up?

10:42Oh, the garden is quite big

10:43and there's a little, you know,

10:44pathway for both.

10:46So I may be dividing it into two

10:48so there will be a little sideways

10:49for the flat in front to go to the back

10:53and the ground floor flat

10:55is going to have the first part of the garden.

10:57Okay.

10:58So in terms of rental,

11:00what would it rent out for as just a house

11:05and how much would it rent out for per flat?

11:08Do you know?

11:08Yeah.

11:09So just a house,

11:10you'll be lucky to get between $850 to $900.

11:15But when it's done to a flat,

11:16you can get $750 each flat.

11:19Oh, really?

11:20Yeah.

11:20It makes quite a big difference.

11:21But obviously there's a lot more work involved.

11:24Yes.

11:24So compare the costs of renovation.

11:28How much would it cost to renovate it just into a house

11:30and how much to convert it into flats?

11:32Do you know?

11:33So if I was doing a house,

11:35it may be around $25,000 to $30,000,

11:38but comparing it to flats,

11:40we're looking at within $35,000 to $45,000.

11:44Okay.

11:44Because that's getting new electrics up,

11:47you know,

11:47getting that done by national grid

11:49and, you know,

11:50planning permission,

11:52you know,

11:52insulation,

11:53soundproofing and co.

11:55Right.

11:55So a bit more,

11:56but a lot of return potentially.

11:58Yes.

11:59Yeah.

11:59On your investment.

12:01You're not selling then?

12:02You're thinking...

12:02No, no.

12:03No way.

12:03This is not for sale, yeah.

12:05So what sort of time scale have you got?

12:07Three to four months, max.

12:09Right, okay.

12:10Yeah.

12:10To do the whole thing.

12:11Who does the work?

12:13So I've actually got to sell builders

12:15that come in,

12:17live in the property,

12:18and at the same time...

12:19Oh, live?

12:19Live, yeah.

12:20Really?

12:20Yeah, because they're from London.

12:22Oh, okay.

12:23So, yeah.

12:23So I've taken them to Stoke,

12:25my two proposes in Stoke.

12:26When they did my renovation in Northampton,

12:28they were all there.

12:29So it's just,

12:30they feel it's better for them

12:31rather than commuting every day

12:32because I've used them.

12:35I believe in their work

12:35rather than trying to source for new builders

12:38and, you know, new architecture.

12:40Great.

12:41Well, listen, congratulations.

12:42Yeah, thank you very much.

12:43Good luck with it.

12:44Yeah, thank you very much.

12:48Hmm.

12:49Converting to two flats.

12:51Didn't see that one coming.

12:52Interesting idea that Ola's got there

12:55and, yep,

12:57he's just responding to demand,

12:59which is always a good thing to do.

13:01How will that go?

13:02Will he get the planning permission?

13:04Will it work?

13:05How will it look?

13:06You can find out

13:07later in the show.

13:09We're off to West Yorkshire

13:15and the city of Leeds,

13:16known for its grand Victorian architecture

13:19and lively city centre.

13:21It's also the proud home

13:23to one of the country's

13:24most legendary football clubs,

13:26Leeds United,

13:27established back in 1919.

13:29It's woven into the city's identity

13:32and their ground,

13:33Elland Road,

13:34has seen more than its fair share

13:36of unforgettable moments.

13:38But will today's auction lot

13:40leave a lasting impression on Dion?

13:41I am in Leeds

13:43and I'm not too far

13:44from the centre either,

13:46so the location is good.

13:48Here's our house,

13:49mid-terrace,

13:50four beds went to auction

13:51with a guide price of 75 grand.

13:54And if you do need to go

13:55to the centre of Leeds,

13:56here's the bus stop.

13:59So,

14:01two yards

14:01into town,

14:03beautiful.

14:03Location's good.

14:04Bus stop where day she's there,

14:07I say it,

14:08please share my own love.

14:10Wow,

14:10that is,

14:11that is a high ceiling

14:13and a bright hallway as well.

14:16Central heating,

14:17which is good.

14:18I quite like that,

14:18high ceilings.

14:20Another couple of steps up

14:20to the rest of the house,

14:22which I'll look at in a minute.

14:24This is the first reception room

14:26in front of the house.

14:27Quite tight in here,

14:28but I can't see any work

14:30that needs to be done

14:31apart from decoration,

14:33possibly new windows,

14:34but that is basically it.

14:35An easy start so far,

14:37but a good one,

14:37a good one.

14:40Okay,

14:40up a couple of steps.

14:42Various stairs leading

14:43to the bedrooms

14:44and then you're into this

14:46large sort of dining space area.

14:49Ceiling's not so high here

14:50because we've come up

14:51a couple of steps.

14:53Central heating there

14:55and then a few bits of bobs

14:56have been left about,

14:58but the size of the room is good.

14:59And then you've got your kitchen,

15:01office,

15:01dining space here.

15:02So the kitchen is quite tight,

15:04but it's about the right size

15:05for the size of downstairs.

15:07I think you're going to need

15:08a new kitchen in there,

15:10new flooring

15:10and some decoration,

15:13maybe some tiles as well.

15:13Really brighten that space up.

15:15But we have a bit of storage,

15:16I would imagine,

15:17here

15:17off the dining space.

15:20Yeah,

15:20that is it.

15:22Oh, no,

15:22it's not it,

15:23actually.

15:24We have got stairs.

15:27Stairs leading to...

15:28Well, let's find out,

15:30shall we?

15:34I found a cellar

15:36with two decent rooms in.

15:40I don't think they'll pass

15:41building regs

15:42or safety regs

15:43as bedrooms.

15:45Obviously, look into it.

15:46You might be able to make tweaks.

15:47So they do pass.

15:48However, right now,

15:50you've got two good-sized rooms.

15:52They are a definite bonus.

15:56Yes,

15:56I'm really surprised

15:57at how big these rooms are.

16:02And on this side of the stairs,

16:04you've got another sort of

16:05studio of some sort.

16:07These are very useful rooms

16:09and space

16:10that I think you have to try and use.

16:13These are a definite bonus.

16:16A real bonus,

16:18but the buyer would be wise

16:19to get in touch

16:20with the local council

16:21to check exactly

16:22what needs doing

16:23to bring the rooms

16:24up to a habitable state

16:25and what the requirements are

16:27for these spaces

16:28to be classed as bedrooms.

16:30It usually means

16:32meeting regulations

16:32for things like fire escapes,

16:35ventilation

16:35and damp proofing

16:36amongst other criteria.

16:39Out back,

16:40there's a small yard.

16:42It needs a tidy,

16:44but it's still a handy bit

16:45of outdoor space.

16:47Although there's not much

16:48to see out here,

16:49inside on the first floor,

16:51Dion's just getting started.

17:01Right then,

17:02we have bedrooms,

17:04one on either side

17:05of this landing here

17:06with a family bathroom.

17:07I'll get to that in a minute.

17:08This is the front bedroom.

17:11I can't see any signs

17:12as a damp or mould

17:13in here with the naked eye.

17:15You've got central heating,

17:16you've got a double glazed window.

17:17You're necessary to decorate

17:18as far as I can see.

17:19That is basically it in here.

17:21And then you go over.

17:22Well, Andy,

17:23be careful now,

17:23be careful.

17:24We've got family bathroom,

17:26which just needs to be sorted,

17:28but brand new suite

17:29in there as well.

17:31And we've got another bedroom

17:32here as well.

17:33A smaller bedroom,

17:34but again,

17:35very little needs to be done

17:36apart from

17:37cosmetically upgraded

17:40from what I can see,

17:41which is good

17:42on the budget.

17:45Up on the second floor,

17:46there are two more

17:48good-sized bedrooms.

17:50With so much space

17:52to play with,

17:53there could be scope

17:53to turn this four-bed mid-terrace

17:55into a house

17:56of multiple occupancy

17:57or even a couple of flats.

18:01But let's find out

18:02what a local estate agent

18:04thinks is best

18:04for this lot

18:05that came with a guide price

18:07of $75,000.

18:11The property's

18:12in reasonable condition.

18:14It would benefit

18:14from new kitchen,

18:16new bathroom,

18:17and maybe even

18:17new carpets down

18:18and a lick of paint

18:19on the walls.

18:21So what does he think

18:23would be the best use

18:24of the property?

18:26My recommendation

18:26would be either

18:28for first-time buyers

18:29because we're at

18:29an entry-level price point

18:30or for investors

18:32either renting it out

18:33as a single let

18:34or by the room.

18:35The HMO market

18:36in Leeds is really strong

18:37with a lot of young professionals

18:38and a lot of students,

18:40so renting out a property

18:41like this

18:41would be relatively

18:42straightforward.

18:44And once the property's

18:45been renovated,

18:46what could the returns be?

18:50Once renovated,

18:51if you were to rent

18:52the property out

18:52as a HMO,

18:53you'd expect somewhere

18:54in the region

18:54of £450 to £500

18:56per room

18:57per calendar month

18:58as a single let

18:59in the region

19:00of £1,200

19:01per calendar month

19:02and if you were

19:03to sell the property

19:03somewhere in the region

19:05of £160 to £170,000.

19:08So if I was a football manager

19:09and this house

19:10just happened to be

19:12my football team,

19:13I would say it needs

19:14a few tactical tweaks,

19:16maybe a new bathroom,

19:17new kitchen,

19:18but I would say

19:19the foundations here

19:20are strong.

19:21I've got everything I need.

19:23All I need to do

19:24is just massage it

19:25into place

19:26and before you know,

19:27you could be climbing

19:28up the table.

19:29There you go.

19:30Let's see what manager

19:32wanted to take this on

19:33when he went under the hammer.

19:37This lot was part

19:39of a remote auction

19:40with bids taking place online.

19:43So.

19:47The successful bid

19:49of £117,500

19:51was made by

19:52the married couple

19:53Van,

19:53a driving instructor

19:55and Chidi,

19:56a doctor.

19:58With their first

19:59property development project

20:00completed last year,

20:01they're going for round two

20:03with this one.

20:05They met Dion

20:05to tell him their plans.

20:08Chidi, Van,

20:09nice to meet you.

20:09Nice to meet you today.

20:11Now, I've got to say,

20:12when I first came

20:12into this house,

20:14it surprised me.

20:15It's massive.

20:16It is.

20:16It's massive.

20:17It is, yeah.

20:17Who found it?

20:18Who's the culprit?

20:20She did.

20:20You did.

20:21I did, yeah.

20:22So, I was just, you know,

20:23looking through

20:24estate agents.

20:25So, initially,

20:26I didn't think

20:27we were buying through

20:27auction.

20:28I was just, like,

20:28looking and looking.

20:29I've been to lots of

20:30viewings.

20:31So, I started checking

20:32leads and then I came

20:33across this one.

20:34I was, like,

20:34interesting.

20:35And then they said

20:35the viewing was

20:36the next day.

20:37I was, like,

20:37okay,

20:37and it was the final day

20:38of the viewing,

20:39final day.

20:39So, the next day

20:40we came here

20:41and I was, like,

20:41wow.

20:42We were pleasantly surprised

20:43because we've done

20:44an auction property

20:44before this.

20:45It was in the States.

20:46Like, terrible States.

20:47Oh, really?

20:47So, when we walked

20:48in here,

20:48I was, like,

20:49wow, this is really good.

20:51So, and then we decided,

20:52like, we're going to

20:53go for it.

20:53Wow.

20:54So, you properly did

20:55your investigations.

20:57You were patient with it

20:58and then when it was

20:59the last day of viewing,

21:00you came and had a look

21:01and told Ban.

21:02Ban said,

21:03yeah, yeah, yeah, yeah, yeah.

21:04I was very impressed

21:05as well because, like she said,

21:06we've done one before.

21:08It was nothing like this.

21:09Ban was in a terrible mess.

21:10So, compared to what

21:11we've done before,

21:12we thought, like,

21:12we're going to go for this.

21:13So, that's where

21:14we decided to proceed.

21:16Were you happy

21:16with what you paid?

21:18Oh, look at that.

21:20She just looked at you

21:21as if to say...

21:22To be honest,

21:23personally,

21:24I'm very strict with budget,

21:25right?

21:26So, we had a budget for it.

21:28After we viewed it...

21:29Tell me your budget.

21:30It was 100.

21:31Okay, okay.

21:31It's not too bad.

21:32So, when it hit 100,

21:34there were lots of interest

21:35and then she just kept

21:36going and going and going.

21:37So, she messaged me,

21:38like, oh,

21:38this is what's happening.

21:39It's gone way over budget.

21:40I'm like,

21:41okay, you need to stop now.

21:44I thought she was going to stop,

21:45but she didn't.

21:46She kept going

21:46and she eventually won it.

21:48And then she now said,

21:49oh, babe, we won.

21:50I said, how much?

21:50She told me the final price.

21:51I was like, oh, my God.

21:53But anyway,

21:53she just was like,

21:54don't worry,

21:55it's going to be fine.

21:55Yes.

21:56I trust her as well.

21:57I trust her very much

21:57when it comes to things like this.

21:58I was like, that's fine.

22:00Now you've seen it,

22:00can you see what she went?

22:02Yes.

22:03I'm actually happy

22:04with the outcome.

22:05I'm happy we bought it, actually.

22:06Oh, gee.

22:06Yeah.

22:10Well done.

22:11Okay, so,

22:12what's the plan for the house?

22:13Why did you buy it?

22:14Did you buy it?

22:14To rent it,

22:15to sell it,

22:15or to live in it?

22:16So, this property

22:17was an existing HMO.

22:18Okay.

22:19So, a property already

22:20has the plan in C4 to use.

22:21So, we can potentially,

22:22if we wanted to,

22:23we can just use it

22:25as a HMO.

22:25All we needed to do

22:26was just apply for a plan

22:27and change a license.

22:29Yeah, change a license.

22:30It's about a new landlord,

22:30basically.

22:31Our strategy at the moment

22:32is holiday lets.

22:33We do holiday lets.

22:34Okay.

22:35The holiday let

22:35was the previous one as well.

22:36So, we are planning

22:37to turn this

22:38into another holiday lets.

22:40Wow.

22:40Yeah.

22:40So, you can see

22:41it has two reception rooms.

22:42So, we are planning

22:44to convert this

22:45into the living room, actually.

22:46So, we'll move it.

22:46We are not doing much,

22:47nothing structurally,

22:47just moving this.

22:48Yeah, yeah.

22:48So, this becomes living room?

22:50Living room, yeah.

22:50Here?

22:51Yeah.

22:51Front?

22:52The front,

22:52we might turn

22:53into another bedroom.

22:54Okay.

22:54Just a couple of beds

22:55in there.

22:56So, nothing structurally

22:57is changing.

22:57Okay.

22:58And then the two

22:59basement floor downstairs.

23:00So, one is going

23:01to be a shower room

23:02and a toilet.

23:03Yes.

23:03And we'll have

23:03a utility room there as well.

23:05And then opposite,

23:06the other basement room,

23:07we are planning

23:08to turn into a games room

23:09because this is a holiday let.

23:10We'll be having

23:11lots of people here.

23:11So, you need to make sure

23:12there is, you know,

23:13entertaining wide as well.

23:14So, pool table,

23:15like a proper games room

23:16downstairs there.

23:17Then, obviously,

23:18we're getting a new kitchen

23:19in there as well.

23:20And then upstairs,

23:21there's nothing much to do.

23:22It's just decoration,

23:23really, changing the carpets.

23:25And the bathroom,

23:26obviously,

23:26we're changing the bathroom

23:26upstairs as well.

23:27So, nothing much,

23:28just decoration and new kitchen.

23:30Yeah.

23:30That's a nice idea.

23:31Yeah.

23:32So, the couple

23:33don't plan to convert

23:34the cellar rooms

23:35into bedrooms,

23:36but they will be carrying out

23:37a cosmetic update throughout.

23:38They're hoping

23:40they can get it ready

23:41for the holiday let market

23:42for £25,000

23:44with a timescale

23:46of around four months.

23:48They'll be bringing

23:49in a team of trades

23:50to complete

23:50the majority of the work,

23:52although Van does want

23:53to take on

23:54the decorating himself.

23:57And what kind of income

23:58can you expect

23:59from these holiday lets then?

24:00Who does the figures?

24:01Who's the money person?

24:02No, I've done the figures.

24:04So, you do the figures.

24:05Yeah.

24:05So, what's making you

24:07do holiday lets?

24:08What kind of figures

24:08can you get?

24:09I think we can get up

24:10to, like, £250 a night.

24:12So, we tend to target

24:13the contractor market.

24:14What kind of figures

24:15a month are you expecting

24:16here, prime time

24:18and off-season?

24:19So, you can get up

24:20to £5,000 a month.

24:21Wow.

24:21Yeah.

24:22It goes with, like,

24:23how many separate beds

24:24you have.

24:24OK, so it's per head,

24:26not per room.

24:27Per head.

24:27OK, I've got you.

24:29That's a good income,

24:31isn't it?

24:32I think you've got

24:33a great venture.

24:34I really do.

24:35A really good venture.

24:36It's in good condition.

24:36It feels solid.

24:37Yeah.

24:38Fingers crossed.

24:39Fingers crossed.

24:40I wish you both

24:40good luck, OK?

24:42Take care.

24:42Thank you very much.

24:42Thank you so much.

24:43Appreciate it.

24:45So, Chidi and Van

24:47have found a little

24:47niche for themselves.

24:48They're not going down

24:49the HMO route,

24:50the flat route

24:50or even the house route.

24:52They're going down

24:53the short-term

24:54holiday let route,

24:55which I think

24:55is a very clever idea.

24:57£25,000 in the budget,

24:59four months-ish.

25:01I think this could be

25:03really nice when it's done.

25:04They've done one before.

25:05They've got a team of

25:06builders they're going

25:06to use and then Van's

25:08going to sprinkle his

25:09own little bit of

25:09stardust on at the end.

25:11You can find out how

25:12they get on and how it

25:13looks later in the show.

25:17Still to come,

25:18Dion has an important

25:19choice to make at this

25:20lot in Coventry.

25:21Is it to the top

25:23or do we start

25:24at the bottom?

25:29And did everything

25:30go to plan for Van

25:31and Chidi back in Leeds?

25:33We definitely did have

25:35surprises along the way.

25:40It's time to head back

25:42to Northampton where

25:43earlier I took a look

25:44at this two-bed

25:45mid-terraced house

25:46that went to auction

25:47with a guide price

25:48of £94,000.

25:49It's not a bad

25:51condition, it's a good

25:52size, it's a nice

25:53location, it just

25:55ticks all the boxes.

25:57It was snapped up

25:59for £127,500

26:00by London-based

26:02property developer

26:03Ola, who committed

26:04the cardinal sin of

26:06not viewing the

26:07property beforehand.

26:09But he wasn't too

26:10disappointed when he

26:11eventually saw what

26:12he'd bought.

26:13I just looked at

26:14the floor plans from

26:15the other property

26:16that was sold and

26:16just see what I can

26:18use the property

26:19for.

26:19And I decided to

26:20just, you know,

26:21click on the button.

26:22Then, of course,

26:23when I get in, I'm

26:24definitely going to

26:24take it back to

26:25Bric.

26:26Subject to planning

26:27approval, he hoped

26:28to turn this two-bed

26:29house into two

26:31one-bedroom flats

26:32with a three- to

26:33four-month time frame

26:34and a budget of up

26:35to £45,000 for the

26:37full conversion.

26:38Four months later,

26:39we're back to see

26:40if Ola's ambitious

26:42plan worked out.

26:43Well, bang on schedule,

26:58but it's clear the

26:59hoped-for two one-bedroom

27:01flats have failed to

27:02materialise.

27:03When we put in the

27:05planning permission,

27:06the council came

27:07back because some

27:08of the tenants were

27:09like, the lower, the

27:10ground floor flat is

27:10going to be a bit too

27:11small, and upstairs

27:13flat was just below

27:1437 metres squared.

27:16So we went back

27:17saying we'll try and

27:18extend the lower part

27:20of the property to be

27:21able to meet the 37

27:22square metre.

27:23But when we looked

27:25at, you know, that

27:26and upstairs where

27:27the council was still

27:28saying it's just below

27:30the requirement, we

27:31felt there was no

27:32point trying to invest

27:33in extending the

27:35property.

27:36Instead, Ola and his

27:38team of builders have

27:39given the house a

27:40back-to-brick

27:41refurbishment with a

27:42complete rewire, wall

27:44insulation throughout,

27:45and a new central

27:46heating system.

27:47Work which has

27:49contributed to

27:49improving the house's

27:51energy performance

27:52rating, which was

27:53sitting at an E.

27:55Yeah, the EPC rating

27:56is the higher band

27:58of C, very close to

27:59going into B, so,

28:01which is very nice

28:02because the new

28:03EPC rating that is

28:04coming in very soon

28:05that requires a

28:07minimum of C, so

28:08we've been able to

28:09upgrade the property

28:09to that level, whereby

28:10we don't have to do

28:11any major work in the

28:12future.

28:14Ola has reused the

28:15kitchen units and

28:16worktops, but

28:17freshened up the

28:18flooring and tiles.

28:20And it's a similar

28:21story upstairs where

28:22the existing

28:23bathroom suite has

28:24been retained, but

28:25everything around it

28:26has been renewed.

28:28One change to the

28:29layout has been made,

28:30the addition of a

28:31downstairs WC, which

28:33is awaiting the

28:33return of the build

28:34team to do their

28:36snagging.

28:37Another area that

28:38could still use some

28:39work is the back

28:40garden, because

28:41although the serious

28:42undergrowth has been

28:44dealt with, it would

28:45benefit from a little

28:45landscaping to cheer it

28:47up.

28:48But Ola's probably had

28:49bigger problems on his

28:50mind, like hooking up

28:52the house to the main

28:53gas and electricity

28:54supply.

28:54We noticed the property

28:56had no gas, because

28:58on the street there's

29:01old pipe and a new

29:02gas line.

29:03So this property was

29:04connected to the old

29:05gas line, so we

29:07tried everything, got

29:08new car, new meter,

29:10they came to install

29:11new batteries.

29:12We're still going,

29:13no, there was no gas

29:14in the property, so we

29:15had to get our

29:15professionals in to come

29:17and, you know, install

29:18the new gas line and

29:19yeah, to make sure

29:20they are, you know, gas

29:21certified, so which

29:23was done.

29:25Without the conversion

29:26to flats, Ola had

29:27set his budget for

29:29renovating the house

29:30at between 25 and

29:3230 grand.

29:33So how did he get

29:34on?

29:35With the old

29:35renovation, we've

29:36been able to do it

29:36under 28,200, so

29:40which was a bit of

29:41savings due to, you

29:42know, no need of new

29:43kitchens, the bathroom

29:45and also being able to,

29:46you know, get stuff

29:48at a cheaper place and

29:50recommendation from the

29:51builder also.

29:53Although Ola's first

29:56plan didn't clear the

29:57planning process, the

29:59fallback hasn't turned

30:00out too badly.

30:02He's still aiming to put

30:02the house on the rental

30:03market, so what returns

30:05could he expect?

30:06Time to hear from a

30:07property expert from the

30:08auctioneers that handled

30:10the original sale.

30:11There's always things that

30:13you can do to improve,

30:14there's always little

30:14extensions or tweaks that

30:16you could do.

30:17You could have a

30:17downstairs extension that

30:18would go out to make an

30:20additional room, you

30:21could get rid of a wall

30:22and make it more open

30:22plan, but I think that

30:24might have been a step

30:25too far, but I think what

30:26they've done is absolutely

30:27what should have happened

30:29with this property and

30:30they've done a good job.

30:31The great thing with this

30:32size property, it really

30:34does appeal to first-time

30:35buyers, but we've got

30:36two bedrooms, there's lots

30:37of single people, lots of

30:39single parents with one

30:40child, so there is quite a

30:41plethora of different

30:42people that this property

30:43would appeal to.

30:44Two values now, Ola has

30:47spent a total of £155,700

30:50on this project, so if he

30:52decided to sell, how much

30:54could it be worth?

30:55I'm looking at a valuation

30:56of around £190,000.

30:58That's close to what we're

31:00looking at, because we're

31:01looking at about £200,000,

31:03so just a bit shy of, but

31:05yeah, of course, we're

31:06open to, yeah, it's open to

31:07negotiation and different

31:08valuers, but yeah, that's a

31:10good figure because it's

31:11close to where we are in

31:13mind.

31:14A sale at £190,000 would

31:16leave Ola a profit before

31:18tax and fees of £34,300,

31:21but he'll be keeping hold

31:23of the house for now, so

31:24how much could it earn in

31:26rental income?

31:28On the rental market, I'd

31:29be looking for this

31:30property to fetch in the

31:31region of £1,000 per

31:33calendar month.

31:33Yeah, I guess we can push

31:35to £1,001.

31:36Yeah, I'm pretty confident

31:38we can do that.

31:40That would give Ola a

31:41return of around 8%,

31:43enough to sit back and put

31:44his feet up?

31:45I don't think so.

31:47How I wish I could go on

31:48holiday, well, for me, it's

31:49just, you know, I'm in the

31:52process of doing the

31:53remortgage for this

31:54property, so once that's

31:55done, any equity from the

31:57property, hopefully I tend to

31:59go back to auction and, you

32:00know, get my ass dirty again

32:02and, you know, get into the

32:04habit of, you know, trying to,

32:05you know, use the money for

32:07something else to generate

32:08more, you know, wealth rather

32:09than keeping it and

32:11spending.

32:11Of course, I will take some

32:12time off and just relax

32:14because it's been up and

32:15down for me, travelling, to

32:17come down to the property

32:18and see what's been done and

32:19manage the property at the

32:20same time.

32:26We're heading to Coventry,

32:28said to be the birthplace of

32:30dragon-slaying St George.

32:32And, back in the day, it was

32:34home to another legend, a

32:36talented striker who played

32:38football for Coventry City.

32:44So I've got something a little

32:45bit different for you today.

32:47I have got one lot, but I've

32:49got two properties within that

32:51one lot.

32:53I've got this building here and

32:56I've got two one-bed flats in

32:59here.

32:59So basically, we've kind of

33:00got a two-for-one scenario.

33:03One bedroom in one flat, one

33:04bedroom in the other.

33:06Went to auction with a guide

33:07price of £110,000 to £130,000.

33:10Now, I love the look of the

33:12building.

33:13Two-for-one ain't bad.

33:14Whatever happened to a

33:15buy one get one free?

33:16Whatever you want, whatever you

33:19like, whatever you say, you pay,

33:21your money, you take, your

33:22choice, whatever you need,

33:25whatever you need.

33:27Okay.

33:27So, is it to the top or do we

33:32start at the bottom?

33:34Let's go in here.

33:36Oh, nice.

33:41We've got a long corridor to my

33:43left, but this is the room at the

33:45front of the property.

33:47And you know what?

33:47As soon as you come into here,

33:49you can smell that it's dry.

33:51It feels a very well-built sort of

33:55building.

33:56Big, big space.

33:57Big sort of two windows letting

33:59loads of light in.

34:00Lovely high ceilings as well.

34:02It's nice.

34:04It feels airy.

34:05It feels clean.

34:06It feels good.

34:09I'm picking up good vibrations.

34:12She's giving me the excitations.

34:15Okay.

34:15So, we've got the bathroom here.

34:16We've got a long hallway.

34:18And the bathroom doesn't look too

34:19bad at all, actually.

34:21The tiling, I think you'd be able

34:23to keep just give the grout and

34:25the tiles a bit of a, a bit of a

34:27clean up.

34:27And then, do you know what?

34:29You might be able to keep what

34:30you've got here.

34:31You might have to change the

34:32taps and stuff, but don't

34:33automatically think, take it out,

34:35start again, because it can save

34:37you money in the long run.

34:39Not a bad size bathroom at all.

34:41And you come down the hallway,

34:42central heating as well.

34:43I can see that there's, somebody

34:45started some new electrical work,

34:48a new rewire, should I say.

34:50And then here, you've got your

34:51kitchen.

34:51And again, you've got to remember,

34:53we are in a one-bed apartment,

34:56one-bed flat, whatever you want

34:57to call it.

34:57This is the kitchen.

34:58It is small, but I don't mind it

35:01at all.

35:02This works.

35:03Could you keep some of this as

35:05well?

35:06Another question you have to ask

35:07yourself before you start spending

35:08money on new stuff.

35:11Not too bad at all, to be honest

35:12with you.

35:13And the last room at the end of

35:18the corridor is the bedroom.

35:20Again, good windows, central

35:22heating.

35:23Listen, it's not a massive

35:24bedroom, but you get a double

35:26bed in there.

35:27It's going to be a bit of a

35:28squeeze, but your bedroom's

35:29sorted.

35:30I just get a nice feeling about

35:32the flat.

35:32It feels very sturdy.

35:34And it also feels like it's kind

35:36of a cosmetic refurb.

35:38And that's it, really.

35:40It could be amazing.

35:41I do like sturdy buildings

35:44which give you solid foundations

35:46for you.

35:51If the vibes aren't good enough

35:53already, then the ground floor

35:55flat also comes with some outside

35:57space, which, although it needs a

35:59tidy up, is great to have.

36:01So that's the first flat that comes

36:08with this lot, and we still have

36:10one more to see.

36:13The good news here keeps getting

36:15better, although for Dion, it's

36:17quite a climb.

36:19As the final flat is on the top

36:21floor.

36:21Come on, Dion, get going.

36:30Right, so I am upstairs, right at the

36:34top of the building now, into the

36:35second flat.

36:37A little bit darker in here, a little

36:39bit tighter, but everything you need

36:42and want is off this area here.

36:44Bedroom.

36:45Let's do the bedroom first.

36:46This is the bedroom.

36:49It is pretty small to be expected,

36:52honestly, but you still get the

36:54lighting.

36:54You still get the high ceilings.

36:56Single bed in here isn't a problem

36:58whatsoever.

36:59When you're back into the hallway,

37:01you've got a good-sized bathroom

37:03here, new shower, new toilet, and

37:06you're off and running.

37:08And then the last room off the

37:10hallway is the sort of lounge, sort

37:14of kitchen area, dining space area,

37:17and it all feels okay.

37:20There's nothing majorly wrong with

37:21it.

37:21It doesn't smell like damp or mold.

37:25I think this could be another tidy

37:27flat, just cosmetic refurb, and you

37:30are off and running.

37:32What do you think?

37:39I'll side with you, Dion.

37:41It has great potential and could be a

37:43great opportunity for a quick flip for

37:45the sales or rental markets.

37:48So let's get the thoughts of a property

37:49expert.

37:51We invited one along from the auction

37:53house who sold it to see what they

37:55make of this lot that came with a

37:57guide price of $110,000 to $130,000.

38:03We have an interesting proposition

38:04here.

38:05So we have a ground floor flat and

38:07top floor flat, which is on the

38:09market for sale.

38:10The middle flat is that it's currently

38:12occupied and owned as well, so that

38:14will not be as part of the sale.

38:16The two properties are quite similar in

38:18terms of their condition.

38:19I would suggest that both would need

38:21bathrooms and kitchens renovating and

38:23replacing.

38:23It would also require redecoration

38:25throughout and carpets being laid

38:27or two.

38:29And once the work is done, he'd expect

38:31to see a sales value of between $100,000

38:34and $105,000 for each flat.

38:36And each could generate a potential rental

38:39income of £750 per calendar month.

38:42So as single lots go, there's a lot of

38:47property here.

38:48Location-wise, we're not too far away from

38:50the city centre.

38:51And you've got back garden as well.

38:54That's a rarity.

38:55That's a bonus.

38:56It's the kind of place I wouldn't mind

38:58taking on myself.

38:59But if you are going to take this place

39:01on, be aware, the step count is going to

39:04be up.

39:04Let's see who fancied it.

39:05Let's see who was fitted on when he went

39:07under the hammer.

39:08This lot was part of an auction

39:12with bids taking place in the room

39:14and online.

39:16Sold at the back of the ring.

39:21With a successful bid of $151,000,

39:24it was bought by property-developing

39:26father and son duo, Sunny and Indy.

39:30They live down the road in Leamington Spa,

39:33and this is their first property purchase

39:35in Coventry.

39:36Dion met up with them to hear what

39:39they had planned for both the ground

39:41and top floor flats.

39:45Indy, Sunny, nice to meet you.

39:46Nice to meet you, Dion.

39:47Nice to meet you, Dion.

39:48Right, you've got a couple of good flats

39:49here.

39:50Who's taking responsibility?

39:52Who's the lucky one that found them?

39:54That was me.

39:55Oh, it was you, was it?

39:55Yeah.

39:56OK, and what is it that you liked about

39:57them?

39:58Well, there was sort of two for the price

40:00of one.

40:01Yes.

40:01So, yeah, we can have one each,

40:04which is nice.

40:06You know, my dad's got one and I've got one.

40:07Good, good.

40:08So, this is father and son?

40:10Yep.

40:10Yeah.

40:10Is this a business deadly duo team we've got here?

40:14We've been going for about 15 years now together.

40:17Have you?

40:17Yeah, yeah, yeah.

40:18It's father and son team, yeah.

40:19Wow.

40:20Is this down to you, Indy?

40:22Yeah, I mean, he wanted to get his hands dirty,

40:25so he decided that he wanted to get into property,

40:27so he's come a long way.

40:30When you started, were you doing it on your own

40:32or did you work for somebody else?

40:33I worked for a company building portable buildings,

40:37actually, almost like mobile homes.

40:39OK.

40:39So, in that industry, you learn carpentry,

40:42electrics, plumbing.

40:44OK.

40:44And then we decided to get into property together

40:47and we went down this road.

40:49I learnt a lot from my dad as well.

40:51That's good.

40:52And that's it, son.

40:53If your dad's done it and he knows how to do it

40:55and you're experienced in doing it,

40:57you're kind of picking up on, extracting information, aren't you?

41:00That's it, yeah.

41:01The pay's not great, but...

41:02Listen, you've got to start somewhere, son.

41:06But, yeah, no, he's taught me a lot and...

41:08Good.

41:08He'll get it all in the end.

41:10Yeah, yeah, yeah.

41:11But, no, he's got his skills and I've got mine

41:13and together when we can bring them together

41:15and very rarely do we need other tradesmen to come on board.

41:18Oh, really?

41:19Yeah, yeah, we only really need other tradesmen

41:21like for signing off the electrics or the gas.

41:24But otherwise, 90% of the work we can deal with ourselves now.

41:27OK, let's start with this flat then.

41:29It's a good-sized flat.

41:30So what's going to be happening in this flat in particular?

41:33So we're going to look at possibly moving the kitchen into here

41:36and so it'll be a kitchen, open-plan living area.

41:40OK.

41:41And possibly turn the kitchen into sort of an office slash bedroom,

41:46wherever somebody wants to use it for, really.

41:48OK, so try and create another room.

41:50Yeah.

41:51Yeah.

41:51Good, good, good.

41:52Back garden as well.

41:53Any changes with the back garden?

41:54How many are you?

41:55Just going to spruce it up and that's it, really.

41:57Just a quick clear-up.

41:58Yeah.

41:59It's not much, really.

42:00It's not that big.

42:02Just a nice tidy-up and it's good for the tenants to use as they wish.

42:07Which market are we going for, by the way?

42:09Rental or sales?

42:10Rental we're looking at.

42:11Rental market.

42:12Yeah.

42:12So what are you doing to the upstairs one then?

42:13Any changes?

42:14So that one, the kitchen is already to one side of that property

42:18in the lounge area.

42:20So we're going to possibly divide that kitchen again

42:23to create a galley kitchen.

42:25OK.

42:26And the remaining room will again become an office

42:29or probably even a child's bedroom.

42:33Yeah, a child's bedroom.

42:34That's the main change upstairs?

42:35That's the main change upstairs and the rest of all will remain as it is.

42:38So what is your budget for both of them, to turn them both around?

42:42I would imagine probably £5,000 per flat.

42:45OK, so you've got £10,000, £5,000 for each flat.

42:48How long will it take you then if you guys are doing the work?

42:50I think we'll probably look at about six to eight weeks.

42:52Six to eight weeks?

42:53What do you think?

42:54I think eight to ten weeks.

42:56Eight to ten weeks.

42:57Listen, that's enough time.

42:59Brilliant, brilliant.

43:00Who's going to be doing...

43:00OK, let's figure out.

43:02You've got one down here with a couple of steps

43:04and you've got one up there with loads of steps.

43:05Who's doing what?

43:06I think Sonny's younger so he can run up the stairs.

43:09That's the correct answer, Indy, by the...

43:11Good luck with that one, kid.

43:12On that note then, chaps, I just want to wish you all the best.

43:16Hope you make a few quid.

43:17Good luck to you.

43:18Bless you.

43:18Thank you very much, Dion.

43:20Lovely to meet you.

43:22I do love to see a father and son team having a go

43:25or just a family together having a go

43:28at property developing for themselves.

43:31You can find out how the lads get on

43:33and how many steps Sonny gets through later in the programme.

43:41Back to Leeds now and a four-bed mid-terrace

43:44that was guided at £75,000

43:46and it offered up a few surprises.

43:49Well, we have a bit of story, I would imagine, here.

43:52Oh, no, it's not it, actually.

43:54We have got stairs.

43:57Stairs leading to...

43:59Well, let's find out, shall we?

44:03I found a cellar.

44:05DC, DC, I'm your unexpected answer.

44:10Not only was there a cellar,

44:12it was large and in reasonable condition,

44:15as was the rest of the house,

44:17all of which was an unexpected surprise

44:19for husband and wife team, Van and Chidi,

44:22who paid £117,500

44:25to get their second property project.

44:31We've done an auction property before this.

44:33It was in the States, like, terrible States.

44:35Oh, really?

44:36So when we walked in here, I was like,

44:37wow, this is really good.

44:40It seemed to be smiles all round

44:42and with plans to potentially turn it into a holiday let,

44:45they hoped a budget of £25,000

44:47and four months' work by a build team

44:50could give it the lift it needed.

44:52Now, just over five months later, we're back.

45:00So some of the work we've done included putting a new floor in.

45:08A new kitchen in.

45:11They decided against turning the front room into a bedroom

45:14and the layout has stayed as it was.

45:17But there's a new boiler and central heating system

45:20to keep the living space nice and cosy.

45:23Then upstairs...

45:25Initially, when we bought the property,

45:28it was a three-piece bathroom on the first floor.

45:34We placed it with a shower room

45:36and when we got the shower room in,

45:39we got a few challenges

45:42because of the position of things

45:44and with the plumbing work.

45:45So we've had to sort of reduce the size of the window

45:49in order to get the shower room where it is at the moment.

45:52This modern shower room will service the four upgraded bedrooms.

45:57And instead of using the house as a holiday let,

46:00the new plan is to rent it as a four-bed house

46:02of multiple occupancy,

46:04in line with the standards set out for HMOs

46:07within the local authority.

46:09And with that in mind,

46:11they've tried to fully utilise all the space.

46:13Yeah, so for the cellar, the basement,

46:17we've managed to convert one part of the cellar

46:19into a bathroom and toilet.

46:27And then the utility,

46:28where we have our washing machine and our dryer as well.

46:33The other part of it,

46:34we needed to use it for a games room.

46:36It's looking good.

46:44Nicely spruced up and all tickety-boo.

46:47But were there any unexpected surprises

46:50during the refurb work?

46:55We definitely did have surprises along the way.

46:59When we viewed the property,

47:01we did notice a bit of damp on the wall, top floor.

47:04So we knew at that point

47:06that we would have some issue with the roof.

47:09But when we got a roofer to have a look

47:11at what needed doing,

47:12that's when we realised that we needed

47:14to replace the entire roof.

47:16And that was a shock.

47:18That wasn't the only shock the house had in store for them.

47:21We were also surprised that when it snowed one morning,

47:24we realised that the entire cellar was flooded

47:27and there was leaks from underneath where water.

47:30I don't know where water was coming from.

47:31So at the end of the day,

47:32we needed to do a damp proofing in the entire cellar.

47:35And then the floor needed to be cemented as well.

47:38Make sure there are no leaks anymore

47:39and no water coming in from outside.

47:41Oh, no, no one understood.

47:44We were holding back the flood.

47:47Learning how to dance the rain.

47:50Not only a flood of water,

47:52but a flood of extra money,

47:54which meant Van and Chidi needed to get more involved.

47:57So we got the trades in ourselves

48:00and we got quotes from different tradesmen,

48:03but we figured out we could save money

48:06by buying the materials ourselves.

48:07So we found materials at a very discounted price

48:11and that worked better for us.

48:13So we would buy all the materials needed,

48:15we'd bring it to the property

48:16and then they'd just come and do the work.

48:17So that has saved us lots of money.

48:20So together they managed to keep the project on track

48:23and nearly within their original timescale.

48:26But with so many unforeseen,

48:28such as the roof and the cellar flood,

48:30their budget was surely affected.

48:32The original budget was £25,000,

48:37but we ended up going over the budget.

48:41We spent £50,000 on the project.

48:48£50,000 on top of a £117,500 purchase price

48:53does mean that Van and Chidi have put £167,500

48:58into this property they would like to rent out as an HMO.

49:02Money well spent?

49:03What does the agent that saw it last time think?

49:07The property's been done to a good standard,

49:09especially taking into account the bathroom and the kitchen.

49:12They've been done lovely.

49:13As always, there will be kind of a few little snagging issues

49:16here and there, but all in all, it's a job well done.

49:20A job well done indeed,

49:22but is it a job that could bring in a return

49:24on their £167,500 investment?

49:29If you were to put this property on the open market,

49:31you could expect somewhere between £160,000 to £170,000.

49:37So, currently on the resale market,

49:39this is a break-even project,

49:41but with their preferred option now to rent it as an HMO,

49:44that could be where the real value lies.

49:47If you were to rent this out per room

49:49as a house of multiple occupancy,

49:51you would expect somewhere in the region

49:53of £500 per room per calendar month.

49:55So, in terms of HMO, there's two smaller rooms,

49:59we are thinking £500 per month,

50:00and then the bigger rooms, £550 per month,

50:03with bills inclusive.

50:05Even at the agent's figure of £500 per room,

50:09that could see a rental income of £2,000 per calendar month,

50:12which equates to a yield of around 14%.

50:14That's not bad.

50:17So, on reflection, how do they feel

50:19about their second venture into the world of property development?

50:22It's been a steep learning curve for us.

50:30This is not the first one,

50:31but I feel like we've done most of the learning from this project

50:35because we've had to project manage it.

50:37I think I feel more confident going into the next one

50:40because I know exactly what I'm going to do

50:41for the subsequent projects.

50:44I totally agree. I completely agree with that, yes.

50:46We're back in Coventry,

50:53where we found a lot that offered twice the potential,

50:56with two one-bed flats included as part of a single lot.

51:00It feels a very well-built sort of building.

51:05It's nice.

51:08With a guide price of £110,000 to £130,000,

51:12it looked like we were on to a winner.

51:14I think this could be another tidy, flat,

51:19just cosmetic refurb, and you are off and running.

51:28For £151,000, it was bought by father and son

51:31property-developing duo Indy and Sonny,

51:34who were looking to make the most of their latest purchase.

51:38What is it that you liked about them?

51:40Well, there was sort of two for the price of one.

51:43Yes.

51:45So, yeah, we can have one each, which is nice.

51:48You know, my dad's got one and I've got one.

51:52They plan to create a second bedroom in both flats,

51:55getting them rental-ready in six to ten weeks

51:58with a £10,000 budget.

52:00So, how did it turn out?

52:03Well, a year on, we're back to see how it all came together.

52:05The ground floor flat, we did a complete refurb top to bottom

52:24and the kitchen's been relocated.

52:27So, it's a nice, open-plan kitchen living.

52:29We've got another room there now,

52:31which can be used as an office or bedroom,

52:35whatever somebody wants to use it for.

52:37The ground floor flat is now a two-bed.

52:44The bathroom has a smart walk-in shower.

52:49And there's the outside space, which has been left as it was.

52:53The first flat is rental-ready, but what about the one above?

52:57Upstairs, originally, our plan was to separate the living room

53:02and create another room there.

53:04But on the advice of the agents, we decided to keep it open-plan.

53:09And now that it's finished, it works really well.

53:11All together now

53:13All together now

53:18In no-man's land

53:22Together

53:23We took all the gas out, completely electric now.

53:27Better for the environment

53:28So, yeah, it's fresh for the new occupant and ready to go.

53:35When the old boilers turned out to be past their best,

53:38they decided to ditch the gas altogether

53:40and opted to go fully electric, which required a complete rewire.

53:47All the gas and electrical work were carried out

53:49and certified by qualified trades.

53:51As for everything else,

53:52Sunny and Indy tackled it together.

53:57We tend to do 90% of the work ourselves.

53:59You know, my dad's been doing this for many, many years now.

54:02And, you know, over the years, he's taught me a lot.

54:06And the skills that he's taught me, you know, I've got them for life and I'm very grateful for that.

54:13So, you know, I do a lot of the work and my dad sort of project manages.

54:19The experienced pair didn't run into too many problems with the renovation itself,

54:36but juggling other projects and a big change at home meant things took nearly 10 months longer than expected.

54:43Well, I've had a little one in between.

54:47Uh, she's an absolute blessing, though.

54:49And, um...

54:50Angel. Absolute angel, yes.

54:52She's becoming a real character in the house.

54:54And it's a lovely, lovely addition to the household. Lovely.

54:58Becoming a dad and a granddad is a milestone that tops any renovation.

55:05But with life's big moments stretching out the timescale, did that also stretch the budget?

55:11The pair were originally aiming to spend no more than £10,000.

55:15I had a quick tot-up yesterday, actually, and we've ended up spending just under £6,500.

55:24So, very pleased with the budget.

55:29After months of hard work, the flats are finally ready.

55:32But with the work now complete, it's time to see how the numbers stack up.

55:36We invited back the expert who saw it last time to get his thoughts and new valuations.

55:42Yeah, the client has changed the properties somewhat.

55:46So, downstairs, he has now added a second bedroom.

55:49We have an open-plan kitchen lounge area.

55:52Two bedrooms to the rear, next to the garden, and it works very well.

55:55To the top floor, the client has obviously left the open-plan kitchen lounge area,

55:59which works, again, very well.

56:01Generally, this is what we would recommend,

56:03to have an open-plan format for the lounge kitchen area.

56:06Sunny and Indy have spent a total of around £157,500,

56:14including the initial purchase at auction.

56:18So, with the changes they've made, how much could the flats now fetch on the sales market?

56:23I would be placing the two-bedroom property on the market from between £110,000 and £115,000.

56:30The one-bedroom property on the top floor, I would imagine, will achieve a value of £105,000 to £110,000.

56:37I think that's fantastic, actually.

56:39Happy with that.

56:40Yeah.

56:40The plan is not to sell them, but who knows in the future?

56:46So, a pre-tax profit of £67,500, taking the expert's top figures,

56:52isn't going to deter the pair from their plans to rent.

56:55So, the big question is, what sort of income could the two flats now generate?

57:02If I was to place these properties on the market for rents,

57:04I would suggest a marketing price of between £850 and £895 per calendar month.

57:10For the two-bedroom property, I would imagine the one-bedroom property

57:13would attract a figure between £750 to £795 per calendar month.

57:17Happy with those figures, isn't it?

57:19Yeah, happy. Very happy. Definitely.

57:21If they were able to achieve rents at the higher end,

57:25they could be looking at a pre-tax annual income of over £20,000,

57:30a healthy yield of more than 12%.

57:33So, financially, this project has been well worth the wait.

57:40Now it's finally over the finish line, have the pair enjoyed their journey?

57:44My dad's taught me so much, and hopefully we'll continue on this journey.

57:52Yeah.

57:53And I just wish he was 20 years younger.

57:56I wish I was 20 years younger as well.

58:02Well, property renovation can come with its ups and downs.

58:07Yes, it's a rollercoaster ride, but join us on that ride next time,

58:13when we'll have more stories from the auction rooms here on Homes Under the Hammer.

58:17We'll see you then. Goodbye.

58:18You guys.

58:20We'll see you then.

58:25Bye.

58:28Bye.

58:29Bye.

58:31Bye.

58:40Bye.

58:44Bye.

58:45Bye.

58:46Bye.

58:47Bye.

58:48Bye.

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