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00:00Hello, welcome to the programme. Now, let me set the record straight.
00:05You don't have to be a property developer or a professional to buy under the hammer at auction.
00:12You could be a first-time buyer, you could be somebody who, yes, is building their property portfolio,
00:17or you could be somebody who's just looking for their next home,
00:20because all those properties are available when you head down to your local auction house.
00:30Well, when you buy at auction, it's really important that you don't get caught up in the heat of the moment and pay too much.
00:58You've got to do your research beforehand, set a budget, and then stick to it.
01:03So, what did the buyers on today show by?
01:07In South London, I get trapped inside.
01:11Now, frustratedly, that is the garden, but you can't get to it.
01:18In a Birmingham house, is Dion ready to paint a picture?
01:22If you had a blank canvas, you could create something really smart right here.
01:26And in Kent, Jackie's puzzled by a property's interior design.
01:31What is that?
01:36Why is that there?
01:39All these properties have been sold at auction, and we'll find out who bought them and what they paid for them
01:43when they went under the hammer.
01:45We're starting things off in South East London and the area of New Cross.
01:56It's known for its thriving art scene and live music venues,
02:01but will the auction lot I'm here to see put on a good show?
02:04Well, just a short walk from the train station on this very busy road,
02:16very close to other transport links.
02:18Literally, there's a bus station just there, is the property I'm here to see.
02:21It's a two-bed ground and basement flat.
02:24Guide price is £320,000.
02:26Let's have a look.
02:26On paper, it's an attractive proposition.
02:31And as a London flat, it's no surprise, it's a leasehold.
02:35But there's good news, as it has 125 years remaining on that lease.
02:41As with any property like this, you'll need the freeholder's permission for any internal alterations.
02:47But the well-kept communal areas suggest a proactive management,
02:51so let's hope the inside matches up.
02:56OK, so let's start with the ground floor and in through the door for the communal areas and this one room.
03:04Now, I mentioned the busy road.
03:06You've got double glazing.
03:09But actually, you can still hear quite a lot.
03:14So that does impact what you might want to use this room for.
03:20You see, just the sound of a siren going past.
03:22And that, because it's London, could be any time of the night.
03:24Like, it's amazing what difference triple glazing makes.
03:28And that's literally, you put another frame in here, made all the difference in the world.
03:31So consider that, for sure.
03:34But through here, into the kitchen.
03:37And got a nice feel to it.
03:39Obviously needs refurbishing.
03:41And I'm just getting that feeling straight away.
03:43It's a good-sized flat.
03:45And that's just this floor.
03:46So down here, bedroom there, bathroom, we'll explore that in a minute.
03:55A little storage area, always useful, in the flat.
03:58And then through to what I guess is your second bedroom.
04:01Now, frustratedly, that is the garden which you have shared use of.
04:07But you can't get to it.
04:08And I think, in an ideal world, you're putting some French doors there, and you'd have to
04:14talk to the freeholder of the building, whether that or not that would be allowed.
04:19Radiator's right where you don't want it to be.
04:21But it's something to consider.
04:24Meanwhile, the bathroom.
04:26And one thing to be aware of, of course, when you're in a basement flat like this, is damp.
04:31Damp, obviously, if you're below ground level, the chances that you're going to get damp are
04:36significantly increased.
04:38It doesn't smell too bad, to be fair.
04:40Bathroom, as I was mentioning, nice purple colour.
04:44Not a bad size.
04:45You're going to have to make sure you've got some ventilation in there, because there's
04:48no natural ventilation.
04:49And as far as I can see, there's no...
04:51Oh, yeah, there's a little vent at the end there.
04:54But I think you'd want to improve that.
04:55Because the steam and basic wetness that's going to be created in there is going to be
05:02something you really do not want.
05:04But this is the sort of front bedroom, if you like.
05:08Again, same rules apply in terms of soundproofing.
05:11Put that triple glazing or the additional glazing on there to help.
05:15It's not a bad size, and you could certainly do something.
05:19I mean, there's so much you could do with the interior design of this place.
05:22And overall, there's a lot to play with.
05:25And then, John, this could be a really lovely flat.
05:31The shared garden at the back is currently only accessed through the communal hallway.
05:35But any outside space in London is a huge bonus.
05:39Although it does need some attention, as it's vastly overgrown.
05:47It's a promising lot.
05:48But what will a local estate agent make of this two-bed flat?
05:52They came with a guide price of £320,000.
05:55The flat is in good condition.
06:00It does need a bit of work doing to it, but I'd say it's probably like decorative work.
06:06A bit of work needs to be done to bring the kitchen up to a modern state.
06:10I wouldn't change the layout.
06:12I think the layout works perfectly well.
06:13Having the kitchen and the living room sort of separated on the top floor and the bedrooms
06:18downstairs gives this some self-isolation.
06:20So if you've got guests, there's a lot of light, a lot of natural light coming in.
06:24So it's quite good.
06:27And once the renovation work has been carried out, what does he think the returns could be?
06:33Renovated to a really good standard and finish in the current market could sell for between
06:39the range of £450,000 to £480,000.
06:42And in terms of rental income, you could get rental income of about between £1,800 per calendar
06:48month to £2,200 per calendar month.
06:52It all depends on the presentation and the quality of materials that's used in the finish.
06:58Well, I actually think you're getting quite a lot of flat for your money with this one.
07:03I like the fact it's on two floors and you could do a lot to improve it.
07:08Let's see who took it on when it went under the hammer.
07:12This lot was part of a remote auction with bids taking place online.
07:18We're done.
07:20Sold.
07:24For Bang On, the guide price of £320,000, it was snapped up by business partners Patricia
07:30on the right and Kerry.
07:34We first met them not far away in Brockley, where they impressed with their smart conversion
07:40of a one-bed flat into a stylish two-bed.
07:45Now I'm catching up with them to see what's in store for project number two.
07:51Kerry, Patricia, lovely to see you again.
07:53Lovely to see you.
07:54Yeah, it wasn't long ago then.
07:55How did the flat that we saw you in go?
07:58Yeah, really well, thank you.
08:00Turned out how you'd hoped?
08:01Exactly, yeah.
08:02Wow.
08:03So tell me about this place then.
08:04Why did you want to buy it?
08:06It's in an area of London that is very, very desirable.
08:10It might not seem like it because of all the traffic outside, but in terms of prices, very,
08:16very good.
08:16We've got a few years' experience between us.
08:18We like to buy properties that we can add value to, and this one definitely has that.
08:23Yeah, brilliant.
08:24So tell me about you two then.
08:26Okay.
08:26How did you meet, and what's the story?
08:29So we actually met on social media, believe it or not, and lots of property people were
08:34on there.
08:35We just got chatting.
08:36We started running a room together.
08:38Yep.
08:38So that was four years ago now, and obviously over that time we've met in person.
08:42We've both got properties in our own right.
08:45I've got other business partners.
08:47Patricia's done projects with other people before as well.
08:50What is the appeal of joining forces?
08:53So I don't enjoy working with trade.
08:56This is the part that Patricia plays.
08:58She's going to be project managing, and I'm good at the numbers and finding the finance
09:03and doing all the kind of behind-the-scenes stuff, so which you're not so fond of.
09:08I hate doing those.
09:10Well, that works very well then.
09:11Very well.
09:12Perfect.
09:13So what's the plans then?
09:14Over to you.
09:15Right, so we're going to kind of like keep this really simple.
09:19So this is a lounge, and it's going to remain a lounge.
09:23Then the kitchen's going to be, the wall is going to be extended a bit, and then we are
09:27going to have like a bank of like cupboards on that end.
09:32It's going to look absolutely amazing.
09:34And then a dining table towards that end, but it's going to have a very, very open plan
09:39feel.
09:39And then downstairs, we are going to, so it's got two bedrooms downstairs.
09:45There's a massive, well, massive for us in London, bathroom next to the bigger bedroom.
09:51So we're going to be splitting that bathroom into two, maybe like one-third, two-thirds.
09:58And then the two-thirds bit is going to become an en suite for that bedroom.
10:05The one-third bit is going to become a cupboard for storage.
10:09And then the other bedroom, the smaller bedroom, we're going to be building a wall going from
10:15where it starts across to the back wall.
10:19And then all of that area there, which now is part of the corridor, is going to become
10:26an en suite for that bedroom.
10:28Wow.
10:29And yes, that is the simple spy version, yeah.
10:32And the jobs don't stop there.
10:41Patricia and Kerry will be tackling the damp on the lower ground floor, bringing in a specialist
10:45to make sure that the flat is both watertight and well-ventilated.
10:53The plan is to keep the original windows, but by adding insulation and a new central heating
10:58system, they're hoping to boost the energy performance certificate rating, which currently
11:03sits at a D.
11:06So while Patricia called it a really simple refurb, there's quite a bit on the list.
11:16Now, one thing that struck me downstairs, it's a real shame you can't get instant access
11:20to the back garden, isn't it?
11:21Did you think about putting doors in that bedroom?
11:23We did.
11:24And?
11:25We might still.
11:26So this particular one, at the moment, we're thinking we're going to hold on to it, because
11:31there are some plans afoot, which may take...
11:36A little bit longer.
11:37A little bit longer to actually come to fruition.
11:39Can you share the plans that might be afoot?
11:42You've got to be really intrigued now.
11:43Right.
11:44So the garden, as you might have noticed, is actually very big.
11:47It is.
11:48And it opens up onto another road.
11:52Right.
11:53We would like...
11:55We're hoping to, yeah, go for some planning permission, but obviously we've got to get
11:59permissions for another building.
12:02Yeah, we...
12:03What?!
12:05We're going to approach the freeholder, see if we can buy...
12:08Another building?!
12:09Yeah, see if we can buy all of the rights to the garden, and if we can't, if we can buy
12:14the end bit...
12:15The end part.
12:16Um, because then we can put a house up, which will then front onto the road behind us.
12:22Wow!
12:23So, um...
12:24And then the plan B is if we can't get that, then...
12:28But we still get this end of the garden, then we've got scope to extend...
12:33Right.
12:34...like the other two...
12:35Wow.
12:35...have next door, so...
12:36Amazing.
12:37Yeah.
12:37And we don't necessarily want to start building works at this point, so we're kind of like
12:42thinking, keep, like, the costs down to, and for us, down to is, what, about...
12:48Just over 60,000 at the moment, including contingency.
12:52Yeah.
12:52Wow.
12:52Yeah.
12:53What's the timescale for doing just a flat?
12:5612 weeks.
12:5712 weeks.
12:57Absolutely less.
12:58Love it.
12:59Well, listen, it's great to hear your enthusiasm, and you're obviously making it very successful,
13:03which is lovely.
13:05Congratulations.
13:06Thank you very much.
13:06It turns out really well.
13:08So do we.
13:12Well, Kelly and Patricia know exactly what they're going to do to this place.
13:16Though, I have to say, if that's a simple renovation, it'd be interesting to see what their extensive
13:21renovation would be.
13:23Lots of opportunities and some great potential.
13:27Hmm.
13:28How will it all turn out?
13:29You can find out later in the show.
13:34To Birmingham now, and the suburb of Hall Green.
13:40Originally named Hall Green after a noticeable medieval family, it sits roughly five miles
13:46south of the city centre, and is considered a desirable area of Birmingham to live in.
13:51And on this tree-lined residential street is the property I'm here to see.
13:58Here we are.
13:59It is a semi-detached house, has three bedrooms, and had a guide price of £160,000.
14:05And when it went to auction, the front garden needs a bit of attention.
14:10Rule the house.
14:11Let's have a look.
14:13The front garden is overgrown, but there's potential here for off-road parking, if permission
14:19were granted to drop the curb.
14:21Definitely a good start.
14:22But let's check out inside.
14:24Right, we are inside, and it does feel quite dark in here.
14:30Even though you've got those two doors there with the glass panels in, it still feels quite
14:34dark in here.
14:35I think it's down to the wallpaper, the red, old-fashioned wallpaper.
14:38Stairs going up to the bedrooms.
14:40But this is quite a nice space.
14:42I quite like it.
14:43First reception, then.
14:44And it's okay.
14:48It's the size I would expect it to be.
14:50I can see the same vinyl tiles have ran from the hallway through into this first reception
14:55room.
14:56And it feels quite solid.
14:58And you know what?
14:59Can't smell any damp, can't see any damp so far.
15:02We've got a gas fire.
15:03That tells me there's no central heating.
15:06And I'm making my way over to here, because this window is single-glazed, and it's rotting
15:13away.
15:14You need a double-glazed, UPVC window right here.
15:19That'll be so much better to keep the heat in, keep the cold out, and you won't be able
15:24to hear anything.
15:25I can hear the city calling, crying out for me and you.
15:38There is another reception room in need of attention.
15:41Here, there are doors leading to the garden.
15:46But like the windows, they need to be replaced with modern double-glazed ones.
15:50There's potential downstairs to create an open-plan layout by knocking down the wall between
15:58the two reception rooms, or the wall between these rooms and the kitchen.
16:01And speaking of the kitchen.
16:04Right.
16:06Okay, so we've got a bit of a pantry there.
16:10Maybe.
16:11Could be a downstairs loo.
16:13Could look into that.
16:14Into the kitchen, and we've got a decent back door and a decent double-glazed window as well.
16:21They can stay, the kitchen itself hasn't been decorated in a long time.
16:28There's hardly anything in here as well.
16:30So, I would look into knocking that wall down there, create a kitchen dining space.
16:37And I think, if you had a blank canvas, you could create something really smart right here.
16:43So, that wall gone is the way to go.
16:45Let it move, yeah.
16:48Let it move, yeah.
16:51Let it move, yeah.
16:53Right, upstairs, we have got three bedrooms and your family bathroom here.
17:01These two bedrooms at the front, one's a box bedroom, single bed, maybe nursery, office.
17:07And then that one there is a double bedroom, big bay window as well, single glazed, unfortunately.
17:13So, there's a few quid to be spent there.
17:15This family bathroom here, right.
17:19It's seen better days, completely dated like the rest of the house.
17:23But if you take it all out, there's enough space here to create a bath and maybe a freestanding shower as well.
17:29I can see the head of tank and the water tanker in here as well.
17:32Try and find some space for a combi boiler somewhere, and then you'll have a bit more space in here.
17:38But yeah, you know what?
17:40It's doable.
17:41Everything's doable.
17:43Bedroom number three at the back of the property.
17:46It's a double bedroom, quite easy to get a double bed in here.
17:49It needs tidying up.
17:51I can see there's, okay, a little bit of, this is the first bit of negative news I'm bringing you on this house.
17:58Bit of mould, bit of damp here as well.
18:00But it's not worrying me too much.
18:02You've got the ivy on the back of the house.
18:04The ivy would have interfered with the guttering and water would have found its way in somehow.
18:10So, not too worried about that at all.
18:13You know what?
18:13It's a good, solid house, loads of potential, definitely worth taking on.
18:20It's safe to say this property is in need of a renovation.
18:26But structurally it's sound, and there's plenty of space to play with.
18:31And that's not all.
18:32The back garden may be overrun with brambles and weeds, but it's around 30 metres long and 6 metres wide.
18:38Once cleared, you'd be left with more than a substantial garden.
18:42Although there is one piece of negative news, the house is leasehold and does have a short lease of only 32 years left on it.
18:55This will probably be an issue for most mortgage lenders.
18:58So this property is likely to appeal mainly to cash buyers.
19:02And the new purchaser will need to look into extending the lease or potentially buying the freehold, which will need to be factored into the budget.
19:13To find out more, we've asked along a local estate agent to get his thoughts on the property.
19:21So the house has not been touched overall, probably since it was built.
19:25It has a need of comprehensive refurbishment throughout.
19:28So we're talking double glazing to the windows, enlarging the kitchen, central heating, the possibility of a new roof, and also the electrics need upgrading to modern equivalent.
19:40The agent thinks there is potential to extend the property to the back depending on the buyer's needs.
19:46But what are his thoughts on the short lease?
19:48This has a dramatic impact on resale value, but also has a dramatic impact on the bottom line and profit margins if you're looking to renovate and resell.
20:01Assuming either the extension of the lease or purchase of the freehold, how much could this property that was guided at £160,000 be worth on the resale market?
20:11I'd recommend an initial sale value of £240,000.
20:19And on the rental market?
20:21I'd recommend an initial rental figure of £1,000 per calendar month.
20:28With a ground floor extension, the agent would increase that sales figure to £270,000 to £285,000,
20:36and the rental income to £1,200 per calendar month.
20:43So this house, it's old, it's dated, and everything in there needs modernising.
20:49We need a brand new central heating system and you've got the issue of that short lease as well.
20:55Let's find out who was willing to put their hand in their pocket when it went under the hammer.
20:58This lot was part of a remote auction with bids taking place online.
21:06Five, sold.
21:11The successful bid of £171,500 was made by Minel, a student from Birmingham.
21:20This is her first property purchase and it will be the beginning of her portfolio.
21:25Dionne met her to find out her plans for this place.
21:30Minel, nice to meet you.
21:31Hiya, nice to meet you, Dionne.
21:33Are you happy with your new purchase?
21:36Very happy, yes.
21:37Was it you that found it?
21:39It wasn't me, it was Dad actually, so I do owe him a lot of the thanks for it.
21:43But I must say, when I first walked in here, that was not my reaction.
21:48I was not feeling it, there were spiders everywhere.
21:51For someone with arachnophobia, that's just not I.
21:54Oh no!
21:55But at the end of the day, it's a good buy.
21:58I've got to say, you've done really well, you really have.
22:01I'm sorry.
22:02What was the plan in finding the house?
22:04What did you find it for? What did you want it for?
22:06Well, I'm on a gap year at the moment, so I'm studying English at uni.
22:11But because I'm going into final year now, so I've got one year,
22:14I thought this is a great time to sort of start my goal to have a property portfolio.
22:19How do you know?
22:2022.
22:21Which is a perfect time to get onto the property ladder.
22:23Yeah, definitely.
22:24Absolutely perfect.
22:25Was it Dad that gave you a little nudge?
22:27Yeah, I'd say, like, my Dad's always been my inspiration,
22:30because he's been in the property market for quite a while now.
22:33So seeing him, like, going to student houses, into the sort of care homes industry,
22:38or sort of property, inspired me definitely that I wanted to do the same thing.
22:43That's good.
22:44Do you know what's in line for this house?
22:46I'm thinking of extending the kitchen out into the garden, and knocking this wall down,
22:53so that it'll be a one kitchen diner.
22:56Nice.
22:57Yeah.
22:57Nice, I like that.
22:58So is it just the kitchen you're going to extend, or you've got to extend this room as well?
23:02I think it's this room as well, just back into the garden, because a few of the neighbours have
23:06done that, so I think that'll look good.
23:09This wall is staying?
23:10Yeah, this I'm going to keep, and then turn that room into sort of just a lounge.
23:15OK, a nice chill out and a separate to here, which I think is a good idea.
23:21As well as these layout changes, Minel will carry out a full renovation.
23:27She'll be the project manager, and since this is her first project,
23:31her Dad, Manwar, will be on hand to help.
23:34As for the work itself, she's going to bring in contractors,
23:38and hopes to use some of her Dad's connections.
23:41What kind of budget have you got to sort of do all the work there?
23:45Well, I was starting at sort of 45, but I think I'm going to be increasing it to like 60 now.
23:53Is that because of the extension?
23:54Yeah, definitely. The extension, and then also really focusing on the kitchen and the bathroom,
24:00they're what I want to really stand out in the house.
24:03Which is exciting, eh?
24:04Yes, definitely.
24:05So we have got a small front garden, which is overgrown at the moment, needs to be sorted,
24:12and we've got a massive back garden, which is totally overgrown.
24:16Let's start off the front. What are the plans for the front?
24:18So with the front, like, every house on this road has got to drive,
24:22so I'm definitely thinking two space, car spaces, drive.
24:25Nice.
24:26And then with the back, we just sort of, it's a jungle at the moment, so it definitely needs tidying up,
24:33and then maybe just a seating area and sort of a little shed at the back.
24:39Minel has a timescale of between six and 12 months, depending on how quickly she can get the builders in.
24:46With regard to the 32-year lease, she has already started the process of extending it,
24:51and hopes to hear back from the freeholders soon.
24:55In regards to renting it, is that it? Do you want to rent it out?
24:57Have you ever thought about selling it, or maybe even living in it?
25:00Well, in the future, my plans are to rent it out, see what type of rental income I can get from it,
25:06and then hopefully to maybe remortgage and then increase my portfolio to four or five houses,
25:12maybe in the next five years or so.
25:14So, are we going to see more of you?
25:15Hopefully.
25:18That's the plan.
25:19Good on you. Listen, you've started off with a good one. Good, solid house, this.
25:23Had a wander around. I like it. Loads of potential.
25:26You've got Dad by the side of you as well. Yeah.
25:29I think you're going to do okay. I hope so.
25:32I think you're going to do okay. I wish you all the best, okay?
25:34Thank you very much. Take care. Thank you.
25:37It's good to see Minel taking her first steps on the property developing ladder.
25:41She's got a good house to be getting on with. The big pressure is on Dad Manoir.
25:46Will he be able to find a team of builders that can bring this place back to its former glory?
25:51You can find out later in the program.
25:52Coming up in a house in Kent, Jackie spots something out of place.
26:00The ceiling's come down. I wonder why.
26:06Then in Birmingham, we see how Minel's venture into property shaped up.
26:10It was quite a difficult, challenging experience.
26:14Back now to New Cross in South London, where I saw this ground and basement two-bed flat, guided at 320,000.
26:27And despite a small issue with damp, there was a lot to like.
26:31Overall, there's a lot to play with. And John, this could be a really lovely flat.
26:39Business partners Patricia and Kerry agreed, paying the guide price of 320,000.
26:48With a full refurb ahead, they each had their own area of expertise to bring to the table.
26:53I don't enjoy working with trade. This is the part that Patricia plays.
27:00And I'm good at the numbers, which you're not so fond of.
27:02I hate doing those.
27:03Well, that works very well then.
27:05Very well.
27:06They planned on a simple refurb, which involved layout changes for modernisation and a long-term goal of buying the garden freehold and getting planning to build a house.
27:19But first, it was all about the flat and they had £60,000 to get it rental ready in 12 weeks.
27:26Now, 11 months on, we're back.
27:32Inside, there's been a stunning transformation.
27:35This feels like something new.
27:40So, we came into the flat and we weren't happy with how it was.
27:44So, we thought, do you know what, let's just strip it back to brick.
27:47The pair didn't upgrade the windows, but as planned, they have managed to get the energy performance certificate from a D to a C,
27:54by improving the wall insulation and upgrading the boiler.
28:00Grateful the running costs and the flat's impact on the environment.
28:04We put sound insulation in the ceilings.
28:06We created a full ceiling to deaden the noise between the two flats.
28:11And then we completely re-plumbed the central heating and then completely re-wire.
28:21It feels like something new.
28:23The kitchen, there's a little kind of like balcony-type balustrade-type thing, weren't there?
28:32And we thought, no.
28:33We filled that in.
28:34Yeah, we filled it in, created a wall so that the kitchen could actually come around that particular wall,
28:40creating a bit more space, making it more sociable.
28:49And then going downstairs.
28:52So, the bigger bathroom, what we did was we split that more or less like two-thirds, one-third.
28:58And then the one-third is now a cupboard.
29:00And then the two-thirds is the en-suite bathroom to the bigger bedroom, the front bedroom.
29:06Yeah.
29:07It's not your average en-suite.
29:09It has high-end finishes and a full-size bath.
29:12In the bedrooms, the contemporary feel continues.
29:19It's all about light, space and simplicity.
29:23And then we created a brand-new en-suite for the rear bedroom.
29:27And as a smart finishing touch, there's a guest, WC2.
29:50There were big ambitions for the outside space, with plans to purchase the rights to the garden
29:55from the freeholder to either extend the flat or build an entirely separate dwelling.
30:02Discussions on the future of this area are still underway.
30:05But for now, they've cut the garden back to make it usable for tenants.
30:11Then there was the potential Damp to tackle on the basement level.
30:18So, Damp, we kind of dealt with.
30:19We had the structural engineer come in.
30:21He assessed the whole building, no problems there.
30:25We thought, OK, we'll put underfloor heating down there.
30:29So, we have wet underfloor heating all throughout downstairs.
30:33And it's, you know, when it's on, it's really lovely.
30:36Yeah, toasty.
30:37It really is.
30:44Comfort was clearly a priority.
30:46But as with many renovation projects, the timescale didn't go quite to plan.
30:52Things have certainly taken longer than we'd like.
30:55The licence to alter took six months to come through, so that obviously meant we couldn't get started.
31:01With the delays and obviously the late start, the actual works have been about five months.
31:07But it is what it is.
31:08It is what it is.
31:14Time may have run away on this one, but it's been well worth the wait.
31:18This pair certainly make quite a team.
31:22So, you're project manager, aren't you?
31:24Yes.
31:24I'm behind the scenes, dealing with the money, so it's good.
31:29It works well.
31:30Yeah, yeah, yeah.
31:31A great duo indeed.
31:33So, how did their budget of £60,000 fare?
31:37So, we are over.
31:38I suspect it'll probably be about £74 when we're fully done.
31:42With the figures in, the big question is, has the transformation paid off?
31:48We've asked back the estate agent from our first visit to find out his latest thoughts and valuations.
31:54This has been my second visit to the property.
31:56They've maximised the space in all the rooms.
31:59What they've done with the property is really, really great.
32:01It's going to be quite attractive to a lot of potential buyers or even renters in the area as well.
32:07It's quite modern and it's got a really good finish to it.
32:10Having spent £394,000 on the property, including the purchase price,
32:16how much could it be worth if put up for sale?
32:19I think the property in the current market would sell now between the range of £500,000 to £525,000.
32:27Yeah. Well, we think that's...
32:30Well, we've had it valued at £535,000 and that's for mortgage purposes.
32:36So, I think if we were selling it, we could probably get more than that.
32:39Yeah, yeah.
32:42Even at the estate agent's top figure, that would see Patricia and Kerry walk away
32:48with a pre-tax profit of £131,000.
32:52That's a fantastic result.
32:54But this pair have always had their heart set on renting this flat out.
32:58In the current market, I think this property would rent from anything starting from the £2,200 per calendar month price mark
33:07and would go upwards with likely singing of about £2,500 per calendar month.
33:12So, yeah, that's a bit more like it, isn't it, because we've agreed to fall.
33:19That rental figure of £2,400 per calendar month will result in a return on investment of just over 7%.
33:26The future of the garden plot at the back might still be up in the air,
33:31but they must be pretty pleased with how part one of this project has turned out.
33:38Oh, I think it's great. We've still got a few little bits of snagging, but very happy.
33:42Very happy indeed. Very happy.
33:49Now we're off to Greenhithe in Kent, a town which sits beside the River Thames.
33:56It features one of the biggest shopping centres in the country
33:59and access to a high-speed train service, which have both transformed Greenhithe into a property hotspot.
34:08I'm on this residential street about half a mile from Greenhithe's Thameside waterfront.
34:12Now, the property I'm here to see is a three-bed mid-terrace.
34:16It had an auction guide price of £250,000 to £260,000.
34:22And here it is.
34:23Yeah, I know, it looks a bit worse for wear in the front,
34:27but a bit of a clean-up, a spruce-up, it'll be fine.
34:29And I can spot double glazing. Always a good sign.
34:32Let's take a look inside.
34:37So, into a quite small hallway, but not too bad.
34:42Stairs leading up, I'm loving the original features.
34:46You've got your corpus, you've got your arch, you've got all the cornissing.
34:49Really nice.
34:50And that continues inside the front living room.
34:53You've got all of these decorative features.
34:56Look at that ceiling rose. It looks great.
34:58Bay windows letting in lots and lots of light.
35:01High skirting boards.
35:03Most of these seem to be original.
35:05That's not a good sign.
35:07That's a very old fuse box there, so you might have to do a full rewire.
35:12You've got your feature fireplace there.
35:15But what is that?
35:18Why is that there?
35:24I can kind of understand it, you know, to try and let in as much light into both rooms.
35:30But really?
35:32But into this room, which must be the dining room, because it leads into the kitchen.
35:38A nice, decent size.
35:39The features continue, which I'm a big fan of.
35:42I'm not a big fan of the kitchen.
35:44It's definitely tired.
35:45It's dated.
35:46Through the side door, there's a little downstairs loo.
35:51The ceiling's come down.
35:54I wonder why.
35:58Well, that ceiling certainly needs some attention.
36:02Do I have your attention?
36:04Do I have your attention?
36:07Let's hope everything is intact upstairs.
36:10Gosh.
36:12Those stairs are quite steep, actually.
36:14So, on to the first floor.
36:16You've got a small bedroom at the back.
36:19You've got half a bathroom.
36:21Obviously, you need a new one there.
36:22And through the corridor, you've got storage there, always handy.
36:27The second bedroom, again, more storage, but lots of light coming through.
36:30And then into your master bedroom.
36:34It's a decent size.
36:35I really like that you've got the arch windows, again, letting in lots of light.
36:39You know, this entire property is not bad.
36:42You just need to sort out the floors, some decor, nice lighting.
36:47Yeah, positive.
36:50All we need is some positivity.
36:54It's clear that Jackie's impressed, but what will she find when she heads outside?
37:00And out into a garden.
37:04I mean, it's a decent size.
37:06You've got a really nice patio area here.
37:10It is overgrown.
37:11We can see that.
37:12But you get rid of all the weeds, the shrubs.
37:14You've got a really, really nice size.
37:16And I can see there is a back door there, so you've got rear access.
37:20And the house looks solid from here, apart from that chimney.
37:26I can see there's a crack going through, but I think you might be able to just repair it.
37:32But you definitely have to have that looked at.
37:37It's safe to say there's loads of potential outside, too.
37:40I think it's time we heard from a local estate agent, who we've asked along to get his opinion on this three-bed mid-terraced house.
37:52It needs a complete refurbishment.
37:54It would need a new boiler.
37:56The central heating will need checking.
37:58The windows will need replacing.
38:00Complete redeck, new floor coverings.
38:03And the garden needs a lot of attention as well.
38:05So, once all of this work is done, how much could the returns be on this property that was guided at £250,000 to £260,000?
38:16Once all the works here are completed, I think this property would sell for approximately £315,000.
38:23And I think it would rent for £1,500 per calendar month.
38:29Well, this property needs a little love and attention.
38:33And definitely needs a new kitchen and bathroom.
38:36And that chimney, you've got to take a look at that.
38:38So, who was up for the challenge?
38:40Let's find out when it went under the hammer.
38:44This lot was part of a remote auction with bids taking place online.
38:50It will be sold.
38:53The successful bid of £252,000 was made by Charles from Kent.
38:58He has plenty of experience with property development as he's been doing it on and off for the last ten years.
39:05This was his third auction buy and Jackie met him to find out his plans.
39:11Charles, it's lovely to meet you and congratulations on this property.
39:15Thank you very much.
39:16Are you pleased with it?
39:17Yes, I am, actually.
39:19It's probably better than I thought it was going to be.
39:22Yeah, I think it's quite a solid property as well.
39:26Yeah.
39:27You know, there's no sort of sloping floors or anything like that.
39:31No, no, not that I've noticed.
39:34The walls seem pretty solid throughout.
39:37So, yes, quite pleased with it.
39:38So, why this property?
39:41This was one of four I looked at.
39:44Oh.
39:44But the other three never got a look in because this was number one on the auction.
39:50So, once I got this, I didn't bother looking at the other three.
39:53And so, what do you do when you're not buying houses?
39:56What do you do?
39:57I fit bathrooms.
39:58You fit bathrooms?
39:59I fit bathrooms.
40:00That's very handy.
40:01It is quite useful, yeah.
40:02Do you fit kitchens as well?
40:03Yes, I fit kitchens.
40:04Oh, that's very, very handy.
40:06And I'm a carpenter as well.
40:07Oh, you really?
40:08Yes.
40:08Oh, my goodness, you don't even need anyone.
40:10I need an electrician.
40:11Yeah.
40:12I need an electrician.
40:13Yeah, you will.
40:13Right, that's very good.
40:15Yeah.
40:16Yeah, so you're going to be hands-on then, do you?
40:18Yes, yes.
40:19Most of the work?
40:19Yes.
40:20And so, what is the plan?
40:22Did you buy this property to sell on, to rent?
40:26What's the plan?
40:27It's to sell.
40:28It's to refurbish and sell.
40:30Right.
40:30So, it'll be a case of a complete strip-out, new kitchen, new bathroom, complete rewire.
40:39By the time you've rewired the place, it's going to Negrid Plastering.
40:42All the carpets that are here will go, probably get rid of this flooring as well.
40:49Oh, and all the windows and doors, I'm going to do them as well, because they're not exactly
40:53the greatest.
40:54Oh, are you?
40:55So, all the double glazing is going to be replaced with new?
40:59Yes.
41:00Okay.
41:00Yes.
41:01And, of course, a little bit in the garden.
41:03A little bit?
41:06I mean, wow.
41:07A little bit of weeding.
41:08Yeah, exactly.
41:10But it's a nice-sized garden.
41:11It is.
41:12It is.
41:12Yes.
41:13Yeah.
41:13It is.
41:13It is.
41:14And I'm sure it could be quite a good garden once we've actually dug it all over and found
41:20out whether there's actually anything under there apart from weeds.
41:23But at least you've got, there's an access at the back so everything can go out the back
41:26there as well.
41:28Yes.
41:28Yeah, which is good.
41:29How much budget do you have to spend on the renovations?
41:33Between £20,000 and £25,000.
41:35Right.
41:36Okay.
41:36And then timescale?
41:38I think I'll probably take about four months.
41:41As well as an electrician, Charles will also be bringing a window fitter on board, but he'll
41:47see to the rest of the work himself.
41:49One of the big jobs will be to fix the kitchen ceiling.
41:54He's hoping he can get away with a simple repair on the chimney and avoid a full replacement
41:59or having to knock it down entirely.
42:01He'll be doing his research before committing to a plan of action.
42:06But, Charles, let's come to the thing in the room.
42:10There is something in this room.
42:11There's a white elephant in the room.
42:14What are you going to do about this?
42:16I think it has to go and it has to be closed up, basically.
42:23Good.
42:23That cannot stay like that.
42:24Good.
42:25And nor can the gas fire that's in there as well.
42:27No, that feature is not really...
42:30No, it isn't the most lovely of gas fires.
42:32Okay.
42:33So that's sort of more decorative and obviously this.
42:36But then, talking of decorative elements, what I love about this property is all of the
42:41original features, you know, the corbels, the coving, the ceiling rows.
42:45Please tell me you're going to keep all of those.
42:47I will be keeping as much as I possibly can.
42:49Yes.
42:50Yes, I see no reason why the coving in the living room can't stay.
42:55Yeah.
42:56Well, Charles, thank you very much and congratulations once again.
42:59Thank you very much.
43:00I cannot wait to see the results.
43:02You know, I'm looking forward to seeing it myself.
43:04Seeing what happens.
43:08Well, Charles is a kitchen and bathroom fitter, so he's perfectly placed to do up this property.
43:14And so, he's going to replace the kitchen and the bathroom.
43:17He is thinking of removing that chimney and the chimney stacks though, and that is something
43:22he is not familiar with.
43:24And if he's going to do that, he's going to need his neighbour's consent and a party wall
43:28agreement.
43:28So, how will he get on?
43:30And will that chimney be there when we come back?
43:32You can find out later in the programme.
43:40Back now to the Midlands and Birmingham to see a three-bed semi-guided at 160,000.
43:47Well, I say see.
43:49The front garden needs a bit of attention.
43:53Once inside the dark interior, things did improve.
43:56It's a good, solid house, loads of potential, definitely worth taking on.
44:02And the person who agreed with Dion and thought it was worth taking on was Minel.
44:13She paid £171,500 for her first property development project.
44:18In finding the house, what did you find it for?
44:21What did you want it for?
44:22Well, I'm on a gap year at the moment, so I'm studying English at uni.
44:27But, because I'm going into final year now, so I've got one year, I thought this is a
44:32great time to sort of start my goal to have a property portfolio.
44:36My dad, he's been in the property market for quite a while now.
44:39So, seeing him inspired me, definitely, that I wanted to do the same thing.
44:49She had a fairly healthy £45,000 to £60,000 budget and hoped to get the house ready to
44:54rent in 6 to 12 months.
44:56Well, now 13 months on, we're back.
45:08Well, that's quite an improvement, with that overgrown front garden being turned into useful
45:14off-street parking.
45:16And inside...
45:18We've gone for, downstairs, a complete renovation, including a kitchen diner.
45:39Now, what a difference this makes.
45:42And it's all thanks to building a rear extension.
45:44We extended the original kitchen and knocked down the wall between the original kitchen
45:53and living room, to make a nice, big space perfect for a family.
46:04We've also gained a downstairs WC.
46:07And we've also got a small storeroom for the boiler and a utility room coming off the kitchen.
46:24Upstairs, the back bedroom has been turned into a modern shower room.
46:28And those other two dark bedrooms?
46:31And what was the bathroom is now the third bedroom.
46:43Well, the house is looking great.
46:45But what about the impenetrable garden?
46:50I don't know if you can remember, but this whole garden was completely full of trees, shrubs,
46:56and was almost like an overgrown jungle.
46:59So we decided to clear it all out, put sleepers in on the sides,
47:03and eventually we're going to have it turfed and ready for a family.
47:08So there are still some jobs to do to finish this refurb off.
47:13But overall, this project is nearly complete.
47:16The builder did all of the kind of physical work and the changes,
47:23and the planning was, I'd say, a split between me and my dad.
47:26As it was my first property, he helped me out and gave me a lot of tips and advice.
47:31Well done, Dad.
47:33Minel had hoped to complete the whole project during her gap year from university.
47:38But delays finding the right builder and getting some building materials
47:43has meant that work wasn't finished before her return to her studies.
47:49One of the most challenging things was the fact that I was also doing my university degree,
47:55finishing that while doing this.
47:57So there was a bit of multitasking going on.
47:59But I learnt that you have to stay organised
48:01and make sure you've got, like, a timescale that you know you're running to.
48:05So there has been a degree of stress put on Minel.
48:09But overall, she seems to have passed it all with flying colours.
48:13But was she on the mark with her £45,000 to £60,000 budget?
48:19The original budget was £60,000, but we did end up going over this to around £80,000.
48:26This was due to the cost of materials going up, with the cost of living,
48:30and also adding bits and pieces that we didn't really think were going to be necessary at the time.
48:38But our builder sort of advised us that other additions were needed.
48:42So these really bumped up the cost.
48:47£80,000 is quite a chunk of money.
48:49And along with her £171,500 purchase price,
48:54she also spent £23,000 acquiring the freehold.
48:58So she's now got £274,500 invested into this house.
49:04So, money well spent, what does a local estate agent think?
49:09There's been a lot of work done on the exterior,
49:11the front and rear, all the bushes cut down,
49:14off-road parking added,
49:15and also a landscape rear garden that'll look fabulous when it's finished.
49:19The extension is a great addition to the property.
49:23It adds a whole new aspect to the rear of the property,
49:26but also it gives you a downstairs toilet and a utility room,
49:29which adds to the value of the property.
49:32Minnell hopes this house will be the start of a rental portfolio.
49:36But is this house a good investment of her £274,500?
49:43If we were to put this property on the open market,
49:45we'd expect to achieve around £350,000.
49:47So, a potential pre-tax profit of around £75,000.
49:53For your first property project, that's not bad.
49:57But currently, she isn't going to sell,
50:00so the important number at this stage is the rental figure.
50:05If we were to put this on the rental market,
50:07we'd expect to achieve £1,000 per calendar month.
50:09I'd be quite happy with that.
50:11That was around the budget we were looking for.
50:13Maybe £1,100 if we were being really picky,
50:16but I think £1,000 is definitely on target.
50:20£1,000 per calendar month means Minnell will be getting a yield just below 5%.
50:26So, it was quite a difficult, challenging experience.
50:33It was my first property, so it definitely meant a lot
50:36and was really important to me.
50:38I'd say my five-year plan is to get maybe five more properties
50:42and grow my portfolio while also learning lots of new skills
50:46and maybe improving as I go along.
50:56Back now to Kent and the town of Greenhithe on the River Thames,
51:00where Jackie saw a three-bed mid-terrace
51:03with a guide price of up to £260,000.
51:08I'm loving the original features.
51:09You've got your corpals, you've got your arch,
51:11you've got all the cornicing.
51:12Really nice.
51:13But what is that?
51:18So, this house came with a few unusual features
51:21and Jackie's questions didn't end there.
51:24The ceiling's come down.
51:27I wonder why.
51:29Yes, the house was dated and in need of modernisation throughout.
51:34With a purchase price of £252,000,
51:37this three-bed house was bought by Charles,
51:40an experienced property developer
51:42who, on paper, had the skills to make this project a success.
51:47And so, what do you do when you're not buying houses?
51:50What do you do?
51:51I fit bathrooms.
51:52You fit bathrooms?
51:53I fit bathrooms.
51:54That's very handy.
51:54This is quite useful, yeah.
51:56Do you fit kitchens as well?
51:57Yes, I fit kitchens.
51:58Oh, that's very, very handy.
52:00And I'm a carpenter as well.
52:01Oh, you really?
52:02Oh, my goodness, you don't even need anyone.
52:04So, unsurprisingly, Charles planned to do a lot of the work himself
52:08and he had plenty to keep himself busy.
52:12He wanted to install a new kitchen and bathroom,
52:15get rid of those unusual slats downstairs.
52:18He had a total budget of up to £25,000
52:21and thought the work would take him around four months to complete.
52:25Well, we're back a year later.
52:27And Charles' handiwork is now complete.
52:37Things that I've changed around the house,
52:40a new front door, a new back door, two new windows,
52:45but the majority of the windows actually were in good condition,
52:48so there was no need to change them.
52:50They really just needed an extremely good clean.
52:52And around the back,
52:54Charles has given the garden some very much needed TLC.
52:57But what about that crack on the chimney?
53:01We had hoped that we could just render it,
53:04but it was much easier just to take all the bricks off
53:07and completely rebuild it.
53:08So it was probably the quickest and easiest job we had.
53:12Not sure about the rest of it, though.
53:15It sounds like things weren't quite as straightforward
53:18as Charles had hoped for in other parts of the house.
53:22There was a big hole in the ceiling, in the kitchen ceiling,
53:27where there had been a leak in the old bathroom.
53:29All the water had run down the walls from this leak,
53:33so the walls from ground to about a metre up were soaking wet.
53:40Well, it's been worth it in the end,
53:42and there is now a very modern and stylish kitchen.
53:46The dining room, too, has had a revamp,
53:48but there's something missing.
53:50The holes in the wall were obviously a certain feature
53:56that I decided not to keep,
53:59and basically I ripped the whole thing out and started again.
54:05So, thankfully, the unusual feature has gone,
54:08but Charles was able to keep the original period features
54:11in the hall and in the living room.
54:13The one thing that I did have a slight challenge over
54:17was keeping the cornising.
54:19The old ceiling was lath and plaster,
54:21so it was very difficult to take that down
54:25without taking the cornising down.
54:27So what I had to do was screw the cornising to the joists,
54:31and then we were able to replace the ceiling
54:33with a new plasterboard and plastered ceiling.
54:36Upstairs, Charles has installed a new bathroom.
54:52And the bedrooms are now like new.
54:57Along with the rest of the house,
54:59they've been rewired and replumbed with new radiators.
55:02The house seemed to be held together with wallpaper,
55:07and when I started taking the wallpaper off,
55:09all of the plaster came off.
55:11So I had to strip down pretty much every single wall.
55:16As planned, Charles has done most of the work here,
55:18but he has used a qualified electrician
55:20to check the electrics and a plasterer to finish off the walls.
55:24So with Charles doing so much of the work,
55:26has it helped him to stay within his original budget?
55:29Of between £20,000 and £25,000?
55:35I've actually spent just over £34,000,
55:39which was quite a bit over the original budget.
55:42The kitchen was probably a much higher spec
55:45than I originally intended putting in.
55:48I've had to have every single wall plastered
55:50and a lot of paint.
55:52When Charles bought this property,
55:54his initial intention was to flip it for the sales market.
55:58But now he's unsure and is considering moving in himself.
56:02So it's the perfect time
56:03to get the thoughts and valuations from an expert.
56:07We invited one along from the auction house
56:09that sold this lot
56:10to see what he thinks of the work that's been carried out.
56:14It's light, it's airy.
56:15Purchasers have done a really good job of doing it out there.
56:18They had a lot of work to do at the beginning,
56:19so, yeah, it looks great.
56:20Although Charles doesn't plan on renting the property,
56:24if he was to change his mind,
56:25what sort of returns could he expect?
56:28I think the property could rent for £1,400 per calendar month.
56:32It's not bad.
56:34Not that I'm going to rent it, but, yes, that's not bad.
56:37That's a very healthy annual pre-tax income of just over £16,000.
56:42But this isn't going to sway Charles.
56:44For him, the sales figure is more important.
56:48I think the property could sell on the open market for £325,000.
56:53I think that's low.
56:54There is not a single house in this road
56:58or on the next two roads on the market at the moment.
57:01And the houses that have gone went for about £350,000.
57:08If Charles did decide to sell
57:10and achieved his estimation of £350,000,
57:13that would leave him with a nice pre-tax profit of £64,000.
57:17This has been a successful renovation
57:19and Charles plans to make a decision on whether or not to sell
57:23or move into the property in the next few weeks.
57:26But beyond that, what's next on the horizon for Charles?
57:29Does he have any plans to get his teeth stuck into a new project?
57:33My partner and I are looking to buy a house together
57:36and I think that if we do,
57:40it'll be a case of she works while I smash the place up
57:44and put it back together.
57:46And we will see how it goes.
57:48If we buy a house that needs little doing to it,
57:51then I might potentially go and buy another one somewhere.
57:55But certainly if we buy a house that needs a lot to do,
57:58then I will be the one doing it.
58:01Well, that's it for today's show.
58:06If you want to see the evolution of more auction properties,
58:09join us next time here on Homes Under The Hammer.
58:12Goodbye.
58:12Homes Under The Hammer
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