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Homes Under The Hammer S28E75
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00:00Hello and welcome to the show. Now as we know social media and magazines are full
00:05of ultra stylish properties but they've got high watering price tags but there
00:11are plenty of affordable properties out there and one way to find them might
00:15just be by bagging a bargain under the hammer.
00:43Property auctions take place every month all over the UK and there are thousands of
00:50opportunities to bag a bargain and now there's so many happening online it's
00:54never been easier let's see what's coming up on today's show. I visit a lot in
01:01Carnoustie with a recurring theme. There's an awful lot of like pine effects which
01:06you might consider dated or you might love it. It's not a very good start at
01:12Dion's lot in Bootle. It's gonna have to work on its curb appeal because that needs
01:18a bit of money spent on it. And Jackie doesn't beat around the bush at her lot
01:23in Essex. Oh my goodness, there's a lot of stuff out here. It is seriously overgrown.
01:31All these properties have been sold at auction and we'll find out who bought them
01:35and what they paid for them when they went under the hammer.
01:38You bought it, well done, thank you.
01:45Off to the east coast of Scotland first where not far from the coastal city of
01:50Dundee is the tranquil town of Carnoustie home to the Carnoustie golf links which have
01:56hosted the Open Championship eight times. The question is will the property I'm
02:01here to see be a hole-in-one?
02:09I'm in the north east Scottish coastal town of Carnoustie and hooray it's been a short commute
02:15for me. This is close to Dundee and it's only five minutes away from Carnoustie train station
02:20which takes you right into Dundee city centre. So today's property is a three bed mid terrace
02:28which came with a guide price of £130,000. Initial impressions? There's not much you know
02:34of a curb appeal unless you like the jungle look. Let's go inside.
02:44Inside, well, you have what reminds me of a Swedish sauna. There's a lot of pine going
02:52on here and pine effect panelling but I do like the fact, although it looks a bit dated,
02:57I do like the fact that there's a lot of space to have a wee table and a chair or
03:01you could
03:01hang your coats. Then, through to your downstairs hallway, you've got stairs leading up, rooms
03:07leading off. Let's start with this one. Into your sitting room which is quite well proportioned,
03:14it feels quite square and you can imagine being nice and snug and cosy in here. Just now,
03:20it is pretty dated. It's clearly not been touched for a while. You might want to get rid of this
03:26kind of full stonework which takes up a bit of room and again is dated. You've also got
03:32radiators in place so you have central heating and you have double glazing. Both look like they
03:37could do with a bit of an upgrade and that's one way you can improve your energy performance
03:42certificate. Just make sure that your house is as energy efficient as possible.
03:52Staying green, the back garden while overgrown is a fine space with plenty of privacy and handy side
03:59access and the positives keep coming back indoors. And into the kitchen which is a terrific space and
04:11when a kitchen is as spacious as this, I always think it's worth having itself contained. You don't
04:17want to be knocking down walls and making things open plan unless you really want to. For me this works.
04:22So you've got units on every single wall so you've got more than enough space for everything you need.
04:27Everything I'd say possibly has to go. You know I love to upgrade or your refresh where you can,
04:34get new surfaces and handles but these units are past their best and certainly the appliances are.
04:40But this could have a real wow factor and as you can see you've even got room for a breakfast
04:45bar.
04:47The property is showing real promise but perhaps one fly in the ointment is that the ground floor is
04:54also home to the main bathroom in the house which sits next to the kitchen. This isn't a problem for
05:00some but it's always nice if you're able to squeeze one in closer to the bedrooms. Let's take a look
05:06at what
05:06we're working with on the first floor. Upstairs you have, well that's quite interesting, you've got a small toilet area.
05:15Often you might expect to find your small WC downstairs with a basin and then your bigger family style bathroom
05:22upstairs.
05:22It's the reverse here but it's great that the plumbing's in place. Then the first of your bedrooms at the
05:28back of the property,
05:29it's a decent size of double, it's not bad at all. You've got nice wooden flooring, it's not laminate, it's
05:35wooden.
05:36Would you keep it? Often it's nice to have that kind of cushioned feel on your feet upstairs and have
05:42the wooden flooring downstairs.
05:43Maybe you could put some rugs. You don't want to entirely cover up that lovely wood.
05:48Oh, as I look up, you have a ladder leading to a room. You can tell somebody's tried to make
05:56it look a bit livable.
05:57It's been plastered for a start. But to market that as a separate bedroom or room, you would need to
06:03install stairs
06:05and think about health and safety off that room. Then you come to your second bedroom. Again, not a bad
06:10size off double.
06:11There's an awful lot of like pine effects going on which you might consider dated or you might love it.
06:19Then the third bedroom, also a terrific size. This is the most spacious, best proportion of the bedrooms.
06:27It's really fantastic. Yes, it needs love. I can't see yet again any structural issues that are really concerning.
06:35Once you give it that love, this, for me, the proportions, the layout, wonderful, it could be a terrific family
06:42home.
06:51This property seems like the full package. It's got a spacious interior, no signs of serious damage
06:57and has a guide price of only £130,000. But what's the opinion of a professional?
07:04We invited a property expert from the auction house that sold this three bed mid-terrace to hear his thoughts
07:11and valuations.
07:13The property seems to be a little bit tired inside. The carpets are very worn, the decor is dated.
07:21But other than that, the room sizes are very good. There's lots of potential here.
07:26So if a buyer was to renovate and spruce it up, what could it be worth on the resale market?
07:33Once the works have been carried out on the property, I expect the resale value of £145,000 to £165
07:39,000.
07:42And for rental?
07:44The rental figures, once the property's done up, I would expect £950 per calendar month to £1,150 per calendar
07:53month.
07:55This three bed mid-terrace has a lot going for it, or at least it could do once it's been
08:01given a large dose of tender, loving care.
08:04I love the location in the coastal town of Carnoustie. It's wonderful.
08:09The proportions of the rooms, the layout, the outdoor space, all great.
08:13Let's find out who went for it when it went under the hammer.
08:21This lot was part of our malt auction with bids taking place online.
08:25Yes, we are. That's yours.
08:31And it was snapped up for under the guide price at £115,000 by Ross.
08:42And I was excited to hear what drew him to this Carnoustie house.
08:52Ross, I'm very pleased to meet you.
08:53Hi, nice to meet you.
08:54I'm delighted to be in Carnoustie. It's close to home for me. Is this close to home for you?
08:58It certainly is. It's just ten minutes away, so fantastic.
09:01So where do you live?
09:02I live in Monifeth.
09:04Monifeth, lovely as well. I love all the coastal areas.
09:08Good park for taking a dog.
09:10Yes.
09:11Do you have a dog?
09:12Yeah, he loves getting out and about.
09:13What's his name?
09:14Buddy.
09:15Buddy, that's a great name for a dog.
09:17And so what's this house for, this three-bed mid-terrace? Who's it for?
09:23Just for me and Buddy.
09:24So it's not for renovation, to rent out or sell on.
09:27No.
09:27What's your story? Is this your first home of your own?
09:31The first property I bought myself, yeah.
09:33So I've been renting before, so this is the first one I bought.
09:36Not so exciting times.
09:37The guide price here was 130. You got it for a bit less?
09:41115, yeah.
09:42So how did that work? Did you go to the auction?
09:45So it was all done by phone.
09:48The auction house were quite helpful.
09:49It wasn't for them that I wouldn't be standing here right now.
09:52And then you're in the position where you're entering the house.
09:55I'm guessing you had seen the house and read the legal pack?
09:59No.
10:00Oh.
10:01So all I managed to see was the online video of the property and the home report.
10:05When the auction house phoned, it all kind of took off from there, so it was really, really quick.
10:09Yeah.
10:10What keeps you busy? Is there a day job?
10:13Yeah, so I'm a regional painter and decorator.
10:15So Dundee and around, painter and decorator, your own business work for yourself?
10:18No, I'm employed by a care home.
10:20And so you will be quite handy.
10:22I mean, it's a kind of golden property for you in that it's not falling down.
10:28Yeah, no.
10:28But it needs a real modernisation.
10:31Tell me about your plans.
10:33Tell me about your to-do list.
10:34What are you going to do?
10:35Just give it a good decorator throughout, put a few bits of paper up and then a good paint.
10:41So some painting, some wallpaper?
10:43Yeah.
10:44No changes to layout?
10:45No, no changes to layout.
10:46When you've got a kitchen that's a great size like that, there's not-
10:49Yeah, there's so much potential.
10:51Yeah.
10:51So that'll be coming out.
10:52New kitchen get put in.
10:53So new kitchen, third decoration.
10:56Are you changing, not the layout, but anything like doors, internal doors?
11:01Possibly in the future.
11:01We'll see how the money goes.
11:04Now, you do have a kind of a bonus room.
11:06Yes, certainly do.
11:07If you like the attic, which you access by a ladder.
11:11So you couldn't market it as an extra bedroom, which it's not done.
11:15But do you have any plans for that?
11:17No, just keep it as an attic.
11:18Just keep it as storage.
11:20Yeah.
11:20So maybe a games room or something just for myself or a wee hobby room, but nothing more
11:24than that.
11:24So the front garden, are you going to use that as off-street parking?
11:27That'll be used as a driveway, yeah.
11:29Great.
11:29And has it got a dropped curb already?
11:30It does, yeah.
11:31Perfect.
11:31That's a bonus.
11:32Yes.
11:33And then the back garden's a nice space, isn't it?
11:36Nice, isn't it?
11:36Yeah, buddy will love it.
11:38Yeah, buddy will love it.
11:39He will.
11:39There's a wee patio area there as well, so it'll be good for the sun.
11:42Yes.
11:43Are you green-fingered at all?
11:45The greenhouse will be going up.
11:47Greenhouse?
11:47Good, good.
11:47Get some tomatoes growing.
11:49Brilliant.
11:49You cannot beat the smell of tomatoes.
11:52On the vine.
11:53On the vine.
11:53Mm-hm.
11:54And what's your budget here, Ross?
11:57Because I'll be doing most of it myself.
11:59A couple of thousand.
12:00Even with the kitchen?
12:01Yeah, I've got pals that'll do the electricity and the gas and possibly move the boiler if
12:06we need to.
12:07And when will you be inviting us back to see your finished results?
12:13Probably maybe about six months, maybe.
12:16OK.
12:16I was hopefully sooner, but the kitchen might take a bit longer, so just working full-time.
12:22Of course.
12:23Well, I think this is going to be...
12:25Can you see yourself living here for a long time?
12:27Oh, yeah, a lot of potential.
12:28Yeah.
12:28A lot of potential.
12:29And so close to the home as well, so...
12:31Fantastic.
12:32Well, Ross, I wish you the very best of luck.
12:33Thank you very much.
12:35Thanks.
12:38This is a really exciting venture for Ross.
12:42This is the first house he will have owned and be able to call home.
12:47He has plans, but only a budget of £2,000 to make it all happen.
12:53And that's including getting a new kitchen and painting and decorating throughout, though
12:58that is his trade.
12:59He knows what he's doing.
13:00He's got plenty of experience.
13:01Will he do it in six months?
13:03How will it look?
13:04You can find out later in the show.
13:10We're heading north of Liverpool's city centre and the town of Butel, once a fashionable Victorian
13:16seaside resort where the wealthy came to escape the city and take in the sea air.
13:21By the start of the 20th century, as Liverpool expanded, Butel's proximity to the docks made it a thriving hub
13:29for workers and a bustling residential area.
13:32And today, with excellent transport links and ongoing regeneration, it remains an attractive option for buyers.
13:39I'm not too far away from the centre of Liverpool in a place called Butel.
13:44And I'm here to see a house which sounds too good to be true because it's a mid-terrace house,
13:50five beds,
13:51and it went to auction with a guide price of £55,000.
13:56Here it is.
13:58It's going to have to work on its curb appeal because that needs a bit of money spent on it.
14:02But £55,000, five beds.
14:06You never know.
14:07You never know.
14:22Right.
14:23That was shorter than normal, that one.
14:26Yeah, didn't feel very comfortable in there.
14:29The floors are rotting.
14:30There's holes everywhere as well.
14:32There was really bad holes in the ceiling.
14:35So, I don't want to be walking around and find myself falling through the floor at any time.
14:40It's safe out here.
14:42Don't worry, Dion.
14:43We've got you covered.
14:44As our highly trained crew were able to safely enter some parts of the building.
14:50So, through the front door, we're met with a rather roughed up green hallway.
14:54And immediately to the left is the lounge, filled to the brim with rubbish needing to be cleared.
14:59But the really frightening thing is the damage to the floor and ceiling.
15:06To the rear is a bright yellow sitting room, again with furniture to clear and more broken flooring.
15:15And despite the kitchen's calming blue, it's undeniable. It's seen better days.
15:30Hopefully, Dion can identify the source of some of the damage out the back.
15:38Right, I've been in a lot of houses where there's been a little bit of ivy growing up the wall,
15:43maybe.
15:43And it's found its way into a window or something, and the window won't close.
15:47And you just give him a snip, pull it away, and it's done.
15:51That, have a look at that.
15:53That's just going beyond a little bit in a window and stopping a window closing.
15:58That's what I call a tree making its way into the house.
16:03I'm taking a guess that that's the cause of some of the water getting in, gutters being blocked.
16:08It's an issue. You don't want a tree growing out of your house. Get rid of it.
16:14More of that damage can be seen upstairs, where, on the first floor, the three colourful bedrooms have varying degrees
16:21of rotten floorboards,
16:22collapsed ceilings, peeling walls, and warped woodwork.
16:28Although the bold colour choices continue on the second floor, the two bedrooms appear to be in slightly better condition.
16:35At one time, this may well have been a bright and vibrant property, but after years of neglect, it's definitely
16:42lost its sparkle.
16:52OK, I know what you're thinking. What do you do with it, Dionne?
16:59Well, we're kind of looking here because it lends itself to all three markets.
17:03It could be a house, no problem at all. It could be a lovely, large family home.
17:08It could be flats. You could break it up into two flats or even three, and it could be a
17:13HMO as well.
17:14All those three markets have different lead tape to get through, and they would all need different budgets as well.
17:21What you will need for all three of those markets is a good team to turn it around.
17:27It might seem like a daunting task to take on, but perhaps there's a potential profit to be had.
17:35Let's turn to the opinion of a professional, a local estate agent who was able to access some of the
17:41rooms in the property
17:42to get his thoughts and valuations on this five-bed mid-terrace guided at £55,000.
17:52This house needs absolutely everything. It's got to be made safe, I think, initially.
17:57And then a new kitchen, a new bathroom, everything tidied up back and front.
18:02So a total revamp ahead, is there any saving grace?
18:07The size of the property is great, so there's so much potential here.
18:11For example, if you were converting the property into an HMO, you might drop the ceiling on the first floor,
18:16so in the top floor you can extend the rooms there, maybe add some en suites or make an HMO
18:20perspective.
18:21From a family perspective as well, it's got good-sized rooms, so if you've got a decent-sized family here,
18:26big bedrooms, big living space, and a decent-sized kitchen as well.
18:31If kept as a family home and fully renovated, what could it achieve on the sales market?
18:39Once renovated, I would estimate a sales potential of £175,000.
18:44However, if the property was converted into an HMO, I would say it would certainly increase the value,
18:49especially with a five- or six-bed with en suites.
18:53And what rental value could it yield as a family home or an HMO?
18:59Once renovated, if the property was rented to a family as a five-bedroom property,
19:03I would estimate a rental appraisal of £1,200 per calendar month.
19:07If the property was converted into an HMO, I would estimate a rental appraisal of between £400 and £450 per
19:14room,
19:14and it can be converted into a six-bed, so the rental potential there is up to £2,700 per
19:19calendar month.
19:21Well, that £55,000 guide price, I did wonder, is it too good to be true?
19:27And it was. This is a big job, and with this big job, you're going to need a big budget,
19:33you're going to need a big team of workers, and you're going to need a big timescale as well.
19:38And you're going to need to be big and brave to put your paddle up and win this one at
19:44auction.
19:44Let's find out who did that.
19:49This lot was part of a remote auction, with bids taking place online.
19:53It's going to be sold. Well done.
19:58It was Victor who snapped up the property with a winning bid of £71,500.
20:04He's recently taken the plunge into property development, and with only one project behind him,
20:10he felt ready to take on a bigger and bolder challenge.
20:14He met Dion in the garden to tell him the plans for this latest purchase.
20:20Victor, nice to meet you. Nice to meet you, Dion.
20:22Right. Why did you want the house in the first place? What did you buy it for? Rent or sell,
20:26or do you want to live in it?
20:27No. I already live in London, and I worked on another project where I am living at the moment.
20:33And I wanted to work on a project that required a lot of work.
20:38I didn't realise, and I got it. You know, be careful for what you wish for.
20:43But I saw it online, and I was fascinated about, you know, the potential that it could have, and yeah,
20:52I went for it.
20:53OK. So you're based in London?
20:54I'm based in London.
20:55So are you going to be here for this renovation, or are you going to get somebody to do it
21:00for you?
21:00I will manage it, but I will get contractors to work on it.
21:06OK. Yes.
21:06From the area?
21:08I have a preferred contractor that already worked on a project in London.
21:12Gotcha.
21:12So he may come over, he may camp out in the property while doing the works.
21:17OK. Gotcha.
21:17Yeah.
21:18What's the plan for it? Is it sell or rent?
21:22It would be to keep and then turn it into an HMO.
21:27OK.
21:28Yes.
21:28OK, so you keep it in, what, five-bed HMO?
21:30It will be a six-bedroom HMO.
21:33OK, six-bed HMO here.
21:34Correct.
21:35How much do you think that will cost you to turn it around?
21:38The original plan was to spend £50,000, which doesn't seem realistic now, but I'm getting quotes.
21:45So you're in the middle of getting all that money?
21:48I'm getting in the middle of getting it.
21:49I mean, just Windows is already £10,000, you know?
21:54I know, yes.
21:54So, yes, it'll be a surprise, I suppose.
21:57OK, so do you know what you would like to spend?
21:59Do you have a limit on what you would like to spend?
22:01I would love to spend less than £100,000.
22:04OK, good for you.
22:04How long do you think it will take you, then, to turn this from what it is?
22:08And there's a lot of work to be done in there.
22:09A lot of work.
22:10Indeed, yes.
22:10So the HMO?
22:11Take me no more than this year, so maybe about six to eight months.
22:15Six to eight months until we finish, then it's on the market.
22:18So will you pop up from London once a week, twice a week?
22:22Correct, yes.
22:22I'll be coming up regularly to manage the project.
22:26Do you do this full-time?
22:27Do you have a full-time job?
22:28What do you do?
22:29I'm a lawyer by training, but I haven't been doing it for a little bit.
22:35I was looking for something a bit that required more creativity rather than reading contracts.
22:42OK.
22:42So, yeah, I love doing this.
22:45I already worked on a project in London, as I mentioned.
22:48And I love it, you know, just figuring out the layouts and where walls could go, which could be turned,
22:56you know, destroyed and make a beautiful place out of a not-so-beautiful property.
23:01Wow.
23:01Absolutely, yeah.
23:02Well, I can hear the passion in your voice.
23:04You mentioned, you know, moving things around and how are you going to create the bedroom situation?
23:10How's it going to work?
23:11Most of the bedrooms are going to stay the same.
23:14No walls are going to be moved.
23:16OK.
23:16What we're going to do is build an ensuite in each of the bedrooms. There is a space between the
23:25roof and the second floor that could be used for an extra bathroom.
23:29OK.
23:30I'll just need to lower the floor of the room below just to give it enough height.
23:34Yes, yes.
23:35But those are the main changes.
23:37OK, so you'll end up with six bedrooms.
23:39Six bedrooms, a kitchen area and a lounge.
23:42That's brilliant.
23:43So you're actually maximising all the space.
23:47Correct.
23:48That this property has.
23:49That's right.
23:49And that's all within the budget as well?
23:52Ideally, you know, like, I'll have to find out.
23:55Yes.
23:57Hopefully.
23:58Hopefully.
23:58We'll hope for the best.
24:00Good on you, man.
24:00Good on you.
24:01Listen, welcome to Liverpool and good luck with this renovation.
24:06I think you'll be fine.
24:07Take your time.
24:08Don't rush it.
24:08And hopefully it'll turn up well for you.
24:11Good luck.
24:13Well, Victor's definitely not work shy.
24:16I'm just hoping his team of builders aren't work shy either,
24:19because there's a lot of work that needs to be done in there
24:22and the sleeves will need to be rolled up.
24:25He's given himself 100 grand.
24:26I think that will be just enough to get this done.
24:30You can find out how he gets on with his team later in the show.
24:37Still to come, Jackie gets locked in at her auction lot in Basildon.
24:44Unfortunately, I can't get out.
24:47And will Victor be victorious when we return to Bootle?
24:51After the builders remove the ceiling, we realise the extent of the damage.
25:00Back to the east coast of Scotland now and the town of Carnoustie,
25:04where I saw a three bed mid terrace that came with a guide price of £130,000.
25:10Just now it is pretty dated.
25:13It's clearly not been touched for a while.
25:16The spacious layout worked well, but the decor had me pining for modernisation.
25:24Yes, it needs love.
25:25Once you give it that love, this, for me, the proportions, the layout, wonderful.
25:30It could be a terrific family home.
25:33It was local painter and decorator Ross that picked up the lot
25:36with the telephone bid of £115,000.
25:40This was his first ever property purchase
25:42and he'd bought it for him and his dog Buddy to live in.
25:47Tell me about your plans.
25:50Tell me about your to-do list. What are you going to do?
25:52Just give it a good decorated thrill.
25:55New kitchen get put in.
25:56Put a few bits of paper up and then a good paint.
25:59He planned to renovate the property on a shoestring budget of just £2,000
26:04and hope to have the work finished in six months.
26:07Now we're back nine months after our first visit.
26:14And the curb appeal has certainly improved,
26:16with the trimmed bushes revealing a lovely stone driveway.
26:20I have to say it's feeling much more homely already.
26:29The living room looks far more inviting with new carpets and a fresh lick of paint.
26:34Ross decided to keep the panelling which he's spruced up throughout.
26:43Bathroom, when we first moved in, it did look good until I ran the bath.
26:46And it was a bit spongy.
26:48So it basically went through the floorboard.
26:50So I had to put a new bath in, get it all plumbed in.
26:52And yeah, it's been fine so far.
26:56The kitchen was the main project.
26:58We got that ripped out.
27:00Then we realised the floor had to be ripped out, which was an inch thick of concrete.
27:03The tiles on top, so I had to get my mate to help us rip that off.
27:06So that was fun.
27:08And then we got a kitchen delivered.
27:10I put that in.
27:11Most of it myself.
27:14Got help from a few friends.
27:17His friend's dad and his brother, so that was good.
27:21And then upstairs just had like a paint, redecoration.
27:24We just kept everything neutral.
27:26White's a nice bright colour.
27:27Opens up the house as well, so that's good.
27:31Ross has kept the loft as a handy storage space, but may consider turning the room into something
27:37more usable at a later date.
27:39When we first moved in, the back garden was well overdrawn.
27:42So all that got cut back.
27:43And then since it's all been tidy, as you can see about the fish tank there, which I built myself.
27:51Got a wee paving slabs down.
27:53Put a greenhouse up.
27:54My wee hobby.
27:55Tomatoes and strawberries.
27:57Some onions.
27:58Built that as well.
27:58Nice wee summer project to have.
28:02As well as the two fish tanks, eagle-eyed viewers may have spotted evidence of other pets living
28:08in the house.
28:09So just how many animals does Ross live with?
28:12I've got a buddy of the dog.
28:14Two cats.
28:14A couple of snakes upstairs.
28:16Very, very busy household just for me.
28:19With Ross currently working full time and having a menagerie of pets to look after, his
28:25time was constricted when it came to the work.
28:28Luckily, he could rely on friends and family to stop the project getting dogged down.
28:35A lot of friends and family were here.
28:37I did most of it myself.
28:38A couple of chase people.
28:40My dad helped me do some stripping just to get the walls all prepared.
28:44Got a mate's dad.
28:45He's a joiner.
28:45He'd done the work tops and put in some units as well.
28:48So just to help us out.
28:50So working six days a week wasn't the easiest to put in a kitchen, but yeah.
28:56With his time restrictions and unforeseen issues such as the bathroom, the work ended up taking
29:02just over nine months instead of the six Ross had originally planned for.
29:07But did the hurdles here also impact his relatively low budget of just £2,000?
29:13So the original budget was about a couple of thousand pounds.
29:17But due to me living in it, I went a wee bit extra with the kitchen, bought some furniture.
29:22So really we're just looking at about £5,000.
29:26So including the purchase price, Ross has invested £120,000 into his new home.
29:33And while this project was never about turning a profit, it will be reassuring to hear if
29:38Ross has spent his money wisely.
29:40We asked back the expert from the auction house who sold it to find out what he makes
29:45of the changes.
29:47The main thing that has changed is the gardens.
29:49Obviously the front of the property was very untidy, as was the back garden.
29:54So that's all been tidied up and looking really fresh.
29:57The kitchen is brand new and it's been painted throughout.
30:02Obviously as you come in, there's a lovely fish tank, which is great.
30:05He clearly loves his animals here.
30:06So it is a welcoming house.
30:10The expert believes that if Ross were to rent the property, he could achieve as high as £1,150
30:17per calendar month, which equates to a fantastic yield of 11.5%.
30:22But will the increase in the sales value be as impressive?
30:26For the sales market, I would expect a figure of £145,000 to £165,000.
30:33Fantastic.
30:35Just what you want.
30:36Perfect.
30:37Didn't think it would be that high.
30:38But yeah, good valuation.
30:41If Ross can achieve the expert's top figure, he could be looking at a pre-tax profit of
30:46£45,000 if he ever decides to sell his house.
30:50Not a bad markup for a £5,000 renovation.
30:54But this was never about profit.
30:56It was about making his first home off his own come to life.
31:00And in that respect, the value Ross, his friends and family and pets have added here
31:05is priceless.
31:09It's just been so busy working at night, working your days off, one day off at the weekend.
31:14But now just to, you know what it's done, just time to chill out, enjoy some of the garden,
31:19have a couple of drinks and just get back to having a social life is probably the best
31:24bit.
31:24And this one as well.
31:31Just over 30 miles east of London is the town of Basildon in Essex.
31:36With great transport links, a busy town centre and plenty of green space nearby, it's no surprise
31:43it's become a popular spot for commuters, families and investors alike.
31:47It's here we found our next auction lot and Jackie's on her way to check it out.
31:53Well, I'm about a mile from Basildon town centre with its train station and amenities.
31:59And the property I'm here to see is off this road and up this path.
32:04That means you don't have any parking right outside.
32:06But there is parking on the other side of the pathway.
32:10Now, it's a three bed semi that went to auction for a guide price of £185,000.
32:16And it's quite a substantial lot actually, because here it is.
32:21You've got a nice expanse of a front garden.
32:23Yes, it needs a bit of a tidy up, maybe a nice fence.
32:26You do have side access to your garden, which is always grand.
32:30Yeah.
32:31You know, this looks like a typical hammer lot.
32:34Let's take a look.
32:35It's so typical.
32:37I think it's kind of beautiful.
32:40Oh, it's a bit tight.
32:42It's nice to have this little porch area, but I'd like to push this out a bit.
32:47Then it becomes a definite space.
32:49I see some of the neighbours have done that.
32:50OK, so you've got a downstairs loo, which is always good.
32:54But it has to all be ripped out.
32:56Add a sink in there.
32:57And then you're straight into your kitchen dining space.
33:02All very dated, all very dusty.
33:06Obviously, all the windows have been smashed out,
33:09because it's all boarded up.
33:10You've got a door going out to the garden.
33:13It needs someone to come in and actually just sort of rip it all out
33:17and start again, but it's a good size.
33:19Let's carry on.
33:22Ooh.
33:23OK, so your reception room.
33:25And the flooring continues.
33:27Nice views out to your green at the front.
33:32Dated fireplace.
33:33That has to go.
33:34I'd like to see something reinstated.
33:36That's a little bit more modern.
33:37Dated lighting throughout.
33:39So electrics, lighting, heating,
33:42because there's only storage heaters I can see so far.
33:45And then you've got double doors leading out to your overgrown garden.
33:50And, unfortunately, I can't get out.
33:54But, aha!
33:54There is side access.
33:58Where there's a will, there's a way.
34:05So, oh, my goodness.
34:07There's a lot of stuff out here.
34:09And it is seriously overgrown.
34:13You've got this sort of half brick outhouse that needs to go.
34:19But looking back at the house, it is a great plot.
34:22It is a great size.
34:23But could you make it even greater?
34:25I see some of the neighbouring properties have extended out.
34:28And even if you extended out within permitted development,
34:31imagine the space that you would have on the ground floor.
34:35But you've got to roll up your sleeves and get stuck in.
34:38OK.
34:39I'm going back down the side and up to the first floor.
34:44If you're a homeowner, you might be able to make certain changes
34:48to your property without full planning permission,
34:51thanks to what's known as permitted development rights.
34:54For example, in England, a semi-detached house
34:57can often be extended by up to three metres.
35:00But there are exceptions, especially for listed buildings
35:03or homes in conservation areas.
35:05So, it's always best to check with your local council
35:08before making any plans.
35:10And for this property, best to check what's upstairs first.
35:14So, up to your first floor.
35:16Floors have been stripped back.
35:17I can see peeling wallpaper there.
35:19You've got a very...
35:22What can I say?
35:23What's a nice word to say?
35:25It just needs to go, that bathroom.
35:27But a good size.
35:29And then you've got your first of your bedrooms.
35:31Again, a decent size.
35:33There is some storage in there.
35:34Whether you like the louvre doors or not, I don't know.
35:37I can see there's a loft hatch.
35:39Always good for storage.
35:41But, of course, you have to have that insulated.
35:43Then you've got your...
35:44I call it a box room.
35:46It's not too bad.
35:47You could fit a little single bed in there.
35:50And then into your final bedroom.
35:52Once again, lots of peeling wallpaper, textured ceilings.
35:56A little bit of storage here.
35:58And then...
35:58Oh!
36:00Storage here.
36:01Oh, my goodness.
36:03That's massive.
36:05This is massive storage.
36:07I love a good wardrobe, but this feels like...
36:10It almost feels like a walk-in wardrobe.
36:13Like a dressing room.
36:17Look at that.
36:18Look.
36:19Look, wait.
36:20Look at that.
36:21Look at that.
36:22There's a lot.
36:23I mean, it's great, but does it take up too much room?
36:28I don't know.
36:30You'd have to think about that one.
36:31But not too bad.
36:33Everything in this property just needs someone to come in,
36:37strip it all back, get rid of everything,
36:41and then really put your mark on it.
36:43And then this place could be quite spectacular.
36:51One important detail worth noting is that this property has an EPC,
36:56Energy Performance Certificate, rated F,
36:59which is currently below the minimum of the E required for rental properties
37:03in England and Wales.
37:05But whether for the rental market or not,
37:07installing new double glazing, insulation,
37:10and an energy-efficient heating system would help reduce the energy bills,
37:14keep the property warm and cosy over the winter,
37:18and overall be much better for the environment.
37:20So what will a property expert make of it?
37:23We asked one along from the auction house who sold it
37:26for his thoughts and valuations on this three-bed semi
37:30that came with a guide price of £185,000.
37:35My first impression of the house is it's a classic auction.
37:38It's very unmodernised and needs lots of work doing to it.
37:41Structurally, you could put a ground floor extension
37:44if you really wanted to, but actually I think the layout's pretty good.
37:47You've got three bedrooms upstairs,
37:48you've got your bathroom upstairs, which is always good,
37:50and downstairs I actually like the layout.
37:53What work would he suggest carrying out?
37:56In terms of the works required, I don't think there's anything
37:58too structurally unsound from what I can see.
38:01I'd put new flooring, I'd get it stripped out,
38:03do the walls, make it look nice,
38:05but in reality I think it actually looks worse than it really is.
38:09And upon completion, what does he think the returns could be?
38:13Once the property has been fully refurbished,
38:16I would expect it to achieve, on the resale side,
38:19around £375,000, and if they were looking to rent it out,
38:23I think it would achieve around £1,500 per calendar month.
38:29Well, this is a good-sized, solid property,
38:33although it has seen better days.
38:35But give it the full cosmetic rework,
38:38sort out that overgrown garden, up your EPC rating,
38:42and perhaps even extend out back.
38:44This could be transformed into a wonderful home.
38:47Who agreed?
38:48Let's find out when it went under the hammer.
38:55This lot was part of a remote auction,
38:57with bids taking place online.
39:00Solved!
39:03The hammer came down at £277,000,
39:07with the winning bid made by Bissi and his wife, Esther.
39:11With a portfolio that spans both residential and commercial rentals,
39:16Bissi is no stranger to the property world.
39:20Jackie met him to hear what his plans are for this latest edition.
39:27Bissi, lovely to meet you.
39:29Lovely to meet you too.
39:30I know this property is dated, and it needs a lot doing to it,
39:34but it's solid, and it's kind of roomy.
39:37But why did you go for this property in this area?
39:40I know Basilden quite well.
39:42Yeah.
39:43We have another property here too.
39:45Oh.
39:45I thought it was a good guide price.
39:47Yeah.
39:47And, yes, that was it.
39:49Oh, very good.
39:50So, are you local, lad?
39:52About 15 minutes away.
39:54Right.
39:54That's not bad.
39:55And then, as you say, you've got another property?
39:57Yes.
39:58In the area?
39:58In the area, yes.
39:59Oh, wow.
39:59So, is that what you do?
40:01Not full-time.
40:02OK.
40:02I consider myself a part-time property developer,
40:05but I also have a day job.
40:07It's in information security.
40:09Oh.
40:10Yes.
40:11Mum's the word.
40:13Sorry.
40:14And then, how long have you been doing property development?
40:192014, precisely.
40:20Wow.
40:20So, what is that?
40:21OK.
40:22So, over a decade?
40:23Not for the whole time.
40:26About 2016, I went into property full-time.
40:30I did it for a few years.
40:32And then, I had to return back to paid employment, nine-to-five,
40:37due to some circumstances.
40:39Right.
40:39And then, a few years down the line, I'm back fully...
40:42Oh, very good.
40:43..into property.
40:44Hopefully, this works, and then, we'll take you from there.
40:47Onward and upwards.
40:48And you keep growing.
40:48Yeah.
40:49Yeah.
40:50Fantastic.
40:50And then, what about before the auction?
40:52Did you visit the property?
40:54No.
40:55Busy?
40:56No.
40:57You didn't visit the property?
40:59Well, I didn't see the internal part of the property, but I...
41:02Just saw the outside?
41:03Yeah, I saw the outside, so if that counts.
41:05Oh, wow.
41:06So, when you did eventually come to the property, what did you think?
41:10I was happy.
41:10Yeah.
41:10I was happy with it.
41:13No surprises at all.
41:15No.
41:15What are you going to do to this place?
41:18We plan to convert this into a five-bedroom HMO.
41:21Really?
41:22Yes.
41:22Is that what you do in your property developing?
41:24Is that...
41:24You do HMOs?
41:26No.
41:26This is the first HMO I'm doing, actually.
41:28So, this is the first house of multiple occupancy you're going to do?
41:31Yes.
41:32Wow.
41:33So, the plan is to have three bedrooms upstairs.
41:36All of them are going to be...
41:38We'll have ensuite shower rooms.
41:40We're going to be moving some walls around...
41:42Right.
41:42..to get the right size of room.
41:44Yeah.
41:45We're going to remove the entire chimney stack as well to create some space.
41:49Two bedrooms are going to fit here.
41:51In this space?
41:52Yes.
41:53Yes.
41:53Yes.
41:53And then we're relocating the kitchen diner into the lounge.
41:57Amazing.
41:59Visi and his wife, Esther, will be taking on the role of project managers,
42:03which will mean working with the local council to obtain their HMO licence
42:08and managing a team of trades.
42:09Visi will also take the lead on the interior design, hoping to get the project complete
42:15with a budget of £65,000 within 8 to 12 weeks.
42:21Currently, this property has an energy performance certificate rating of F.
42:26So, to raise that, while you're stripping everything back, is that insulation going to be happening?
42:30Floors, walls, lofts?
42:32Lofts.
42:33Everywhere, yes.
42:34And then we're having new windows installed, a gas central heating combination boiler with a cylinder,
42:40or sort of cylinder as well, to serve, you know, five bedrooms.
42:44Absolutely.
42:45You know, it's a lot of work, but you've got, obviously, you're an experienced developer
42:48and you've got your team.
42:49I wish you the very best of luck, I really do.
42:54It was good to meet you.
42:55Same, likewise.
42:56Thank you very much.
42:59So, Visi has plenty of property-developing experience behind him, but this one's a bit different.
43:05This is his first time tackling a HMO.
43:08He has his plans, he has the trades in place, they are ready to go.
43:13And I really hope that this project runs smoothly for him, so he can get back to full-time property
43:20-developing once again.
43:21And you can find out how it all pans out later in the show.
43:30It's time to head back to Bootle, near Liverpool, where we saw a five-bed mid-terrace, guided at just
43:36£55,000.
43:37But, unfortunately for Dion, there was a good reason for the low price tag.
43:43Yeah, it didn't feel very comfortable in there, the floors are rotting, there's holes everywhere as well.
43:49I don't want to be walking around and find myself falling through the floor at any time.
43:55It's safer out here.
43:56With a bid of £71,500, it was bought by lawyer-turned-property-developer Victor.
44:03He already had one project behind him and, on paper, this renovation was right up his street.
44:10Why did you want the house in the first place?
44:12What did you buy it for, rent or sell or do you want to live in it?
44:15No, I already live in London and I worked on another project where I am living at the moment.
44:21OK.
44:22And I wanted to work on a project that required a lot of work.
44:25I didn't realise and I got it, you know, be careful for what you wish for.
44:31Victor would project manage a team of builders who were set to turn this five-bed semi into a six
44:37-bed house of multiple occupancy.
44:40He wanted to keep a spend under £100,000 and hoped to have the work finished in six to eight
44:46months.
44:47Now we're back, two and a half months after our first visit, to see how the work is progressing.
45:03So the first job was to clean up, strip out all of the old furniture, tear out all of the
45:10carpets and also take out all of the ceilings and take out all of the rotten beams.
45:19That was the first part. The second part was done by professional builders who did the heavy lifting to rebuild
45:28a lot of the walls, rebuild a lot of the ceilings, patch up the roof.
45:32And I also got a window installer to install 12 windows. All of the windows were replaced.
45:40The electrical wiring has been put in most part. About 80% of it has been done.
45:46I'm feeling good. I'm feeling good about it.
45:50Plumbing has also started. And yeah, we're in the process of continuing that work, building the structures as all of
45:59the bedrooms will have en suites.
46:02So the structure for all of those bedrooms has been built. Some bedrooms are bigger than others.
46:08Some of them accommodate a small double bed, others a double bed or even a king size bed.
46:18So in relation to the loft, the original plan was to lower the floor. So on recommendation of our architect
46:26who deemed that it was necessary, we kept the level as it is and simply removed some of the walls
46:33under the pitch roof, allowing for more space for an ensuite bathroom.
46:40Victor used the old lounge space to create his sixth bedroom.
46:44So now he just needs to install the kitchen and bathrooms, plaster and decorate, and this HMO will be good
46:50to go.
46:51It might sound like a lot of work, but thankfully, many of the more challenging jobs are already finished.
46:59It wasn't that difficult to remove the tree. I had to remove it personally before the installation of the new
47:06windows.
47:07In relation to the water damage, it was hard to assess the damage because, you know, it was all covered
47:13up.
47:14It was only after the builders removed the ceiling boards and the boards covering the roof that we realized the
47:23extent of the damage.
47:25And the cause was that there were holes all over the roof. We basically have new roofs and new ceilings.
47:34Victor's team of builders are going great guns on this renovation and he believes the work should be finished within
47:41the next four months.
47:43The quick turnaround has been bolstered by Victor mucking in with the work too, helping with the ripout to reduce
47:49on his labour costs.
47:51But has his thrifty thinking stopped his budget from drifting above his intended max spend of £100,000?
47:59I have overspent now at £170,000. However, most of the expenses or things that I need to buy have
48:09been purchased and I'm hoping that the budget will not go any much higher than that.
48:17Victor's application for change of use for the property from a single dwelling to an HMO has received positive feedback
48:24from the council, meaning it should just be a matter of time before he gets his approval through.
48:29In the meantime, let's check back with the estate agent who viewed the property last time to see what he
48:35thinks of the work so far.
48:38There's a lot of changes. The layout specifically, you can now see it certainly taking shape. So there's six double
48:43bedrooms and you can see the en-suites already going in.
48:46The kitchen's nicely opened up into the back garden and there's a separate bathroom and lounge area as well so
48:52you can certainly see the property taking shape for the future.
48:55If Victor sticks to his revised budget of around £170,000, he'll be on track to have spent a total
49:03of £241,500 including the purchase price once the work is complete.
49:09So how much could it be worth on the sales market?
49:11If the property was sold as a finished HMO, I'd recommend £225,000.
49:17I got a valuation from a broker who said that it would be worth between £300,000 to £360,000.
49:26If Victor can achieve his broker's top figure, he could be looking at a pre-tax profit of around £118
49:34,000.
49:35While the estate agent's figure would see him at a loss of about £16,500.
49:41But with Victor set on renting the rooms individually, what sort of returns can he expect?
49:47As a six bedroom HMO, I'd recommend an individual room price of £450 per candidate a month, totalling £2,700
49:54per candidate a month.
49:55I think it's on the low side. It's not too far from my estimate.
50:03But I think each of the rooms can potentially get between £450 to £550, depending on the standard of the
50:13rooms.
50:14As I'm going to keep the standard high, I'm hoping to get the higher end of that rental.
50:21Even if he can only hit the lower rental valuation, Victor would still be looking at a yield of over
50:2813%.
50:29So as long as his budget doesn't creep any higher, he should be on to a winner here.
50:34And once it's finished, we'll be back to see how it all turns out.
50:39The plan going forward is to finish this project, re-mortgage, free of cash to be able to work on
50:47the next project.
50:51A return to Basildon now, where Jackie saw a three bed semi that came with a guide price of £185
50:59,000.
51:00And it was in need of a thorough renovation throughout.
51:04It needs someone to come in and actually just sort of rip it all out and start again, but it's
51:09a good size.
51:10And it wasn't just the inside that was in need of a full rip out.
51:14There's a lot of stuff out here and it is seriously overgrown.
51:21Up to the task was part-time property developer Biscy, who along with his wife Esther, picked up the lot
51:27for the successful bid of £277,000.
51:31And although they had several properties under their belt, this project was to be a new challenge for the duo.
51:39What are you going to do to this place?
51:41We plan to convert this into a five bedroom HMO.
51:45Really? Yes.
51:46Is that what you do in your property developing? Is that? You do HMOs?
51:50No, this is the first HMO I'm doing actually.
51:52So this is the first house of multiple occupancy you're going to do?
51:55Yes.
51:56They had a budget of £65,000 and hoped to have the rooms ready for rent within eight to 12
52:02weeks.
52:03Now, three months later, we're back.
52:12This tired three bed semi has been transformed into a high end house of multiple occupancy.
52:19We've made sure that all the rooms are on suite.
52:22It was a bit challenging because we needed to think about how to run the soil pipes,
52:28how that's going to run to the external drainage area.
52:32So it was quite challenging doing that, but we got there in the end, I would say.
52:39It's all been furnished as well.
52:41We've also done a nice kitchen diner as well.
52:47With a very, very nice standard of finish, even if I do say so myself.
52:53The new kitchen has been relocated to the old living room,
52:57meaning the original open plan kitchen diner could be converted into two new en suite bedrooms.
53:03Upstairs, the task to create three more en suite bedrooms, which met HMO regulations, wasn't an easy one.
53:10So we had a massive chimney breast in the property and we needed to take that out to give us
53:17more room
53:18so that we can achieve the council requirements for bedroom sizes, which is meant to be 8.5 square metres.
53:25So we had to take that out and then that give us more space.
53:28As regulations vary from county to county, the work to convert this property into an HMO was carried out under
53:36permitted development.
53:38And by adding a new energy efficient heating system, double glazing and better insulation throughout,
53:44the property's EPC rating has risen from an F to a D, making it okay to rent.
53:50Now Bisy is just waiting for sign off on his HMO licence.
53:54I think the timeline is about four to six weeks.
53:58I don't think it's difficult at all.
54:00As long as you meet all the amenities requirements for an HMO, it's pretty straightforward.
54:07There's still a little bit of work left to be done in the front and rear gardens,
54:12but the paving has been finished and a new door and roof has been installed on the outhouse
54:18so tenants can store their bikes.
54:21But did Bisy or Esther get involved with the day-to-day work?
54:25No, I didn't do any of the work, but I was on site every single day, right from start to
54:31finish,
54:32to make sure that they're doing what they're meant to do.
54:35We had a builder that did all the work, apart from flooring, carpeting and some of the bedrooms.
54:44Esther is my partner. She was on site a lot of the time as well.
54:50She helped in making lots of, you know, the orders, looking after the furnishing part of things as well,
54:58and then just general support and being there.
55:02The team were able to complete the work within the proposed timeframe of 12 weeks,
55:07but was Bisy as fortunate when it came to sticking to his original budget of £65,000.
55:14We've gone way over that.
55:16It's ended up being about £75,000 to £80,000.
55:20But that's inclusive of the landscaping works, paving outside, getting an artificial grass,
55:27and then I'm still quite happy. I knew that the budget we had was a bit ambitious.
55:32So, yeah.
55:35The extra work, including the garden, has brought Bisy and Esther's total spend to around £357,000.
55:44So will the extra work they've put into this property pay off when it comes to the potential rental returns?
55:50We asked back the expert from the auction house who viewed the property last time to find out.
55:56So this is my second time at the property, and I have to say my first impression is I'm really
56:01impressed.
56:02The buyer's done a fantastic job. They've turned it into a really nice HMO.
56:06All the bedrooms are as nice as each other.
56:09They've all got very tidy bathrooms or shower rooms.
56:12And I have to say it's been done to a really nice standard.
56:15The expert believes that if sold with all five rooms tenanted,
56:19the HMO could achieve an impressive £550,000, which could see Bisy and Esther with a pre-tax profit of
56:28£193,000.
56:30But as they have long-term plans to rent the rooms individually, it's these figures that Bisy will be interested
56:37to hear.
56:37From a rental perspective on a room-by-room basis, just taking each room on its own,
56:43I think you'd be looking to, in a good scenario, get £800 a month.
56:47I think, though, just to get them let, you might take a bit less than that,
56:50maybe even somewhere between £750 and £800.
56:54We've advertised at about £825 to £850.
56:59£850 room has been taken.
57:01One of the £825 rooms has been taken.
57:03So, I think, yeah, that's about a decent price for an HMO of the standard in this area.
57:13If they can achieve full occupancy all year round,
57:16they could be looking at a yearly income of around £49,000,
57:20which equates to a yield of nearly 14%.
57:23A fantastic result for the couple's first foray into HMO rentals.
57:29So, does that mean they'll be back for round two?
57:33This project has taken its toll on me.
57:37It's been quite challenging.
57:40However, we're going on to the next project.
57:44I've got a property that we're moving onto to do this same thing on.
57:49Same in Basilding.
57:51So, by about two weeks, three weeks' time, we should be ready to start on that one.
57:55So, no retreat at all, no.
58:02Renovating a property comes with its fair share of ups and downs.
58:06And we've got plenty more rollercoaster ride stories just like today's.
58:10So, make sure you join us right here next time on Homes Under The Hammer.
58:14Bye-bye.
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