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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
00:45take place every month all over the UK and there are thousands of opportunities
00:50to bag a bargain and now there's so many happening online it's never been easier.
00:55Let's see what's coming up on today's show.
01:00I visit a lot in Carnoustie with a recurring theme. There's an awful lot
01:04of like pine effect which you might consider dated or you might love it.
01:10It's not a very good start at Dion's lot in Bootle.
01:14It's gonna have to work on its curb appeal because that needs a bit of money spent on it.
01:20And Jackie doesn't beat around the bush at her lot in Essex.
01:24Oh 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 and what
01:35they paid for them when they went under the hammer.
01:45Off to the east coast of Scotland first where not far from the coastal city of Dundee is the
01:52tranquil town of Carnoustie home to the Carnoustie Golf Links which have hosted the Open Championship eight times.
01:59The question is will the property I'm here 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 for me.
02:16This is close to Dundee and it's only five minutes away from Carnoustie train station which takes you
02:21right into Dundee city centre. So today's property is a three-bed mid-terrace which came with a guide
02:29price of £130,000. Initial impressions there's not much you know of a curb appeal unless you like
02:36the jungle look. Let's go inside.
02:44Inside well you have what reminds me of a Swedish sauna.
02:50There's a lot of pine going on here and pine effect panelling.
02:54But I do like the fact although it looks a bit dated I do like the fact that there's a
02:58lot of space
02:59to have a wee table and a chair or you could hang your coats. Then through to your downstairs hallway
03:05you've got stairs leading up rooms leading off. Let's start with this one.
03:11Into your sitting room which is quite well proportioned. It feels quite square and you can
03:17imagine being nice and snug and cozy in here. Just now it is pretty dated. It's clearly not been
03:23touched for a while. You might want to get rid of this kind of full stonework which takes up a
03:29bit of
03:29room and again is dated. You've also got radiators in place so you have central heating and you have
03:35double glazing. Both look like they could do with a bit of an upgrade and that's one way you can
03:40improve
03:40your energy performance certificate. 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.
04:07And into the kitchen which is a terrific space and when a kitchen is as spacious as this I always
04:14think it's worth having itself contained. You don't want to be knocking down walls and making things
04:19open and plan unless you really want to. For me this works. So you've got units on every single wall
04:24so
04:24you've got more than enough space for everything you need. Everything I'd say possibly has to go. You
04:31know I love to upgrade or you refresh where you can get new surfaces and handles but these units are
04:37past their best and certainly the appliances are. But this could have a real wow factor and as you can
04:44see you've even got room for a breakfast bar. The property is showing real promise but perhaps one fly in
04:51the ointment is that the ground floor is also home to the main bathroom in the house which sits next
04:58to the kitchen. This isn't a problem for some but it's always nice if you're able to squeeze one in
05:03closer to the bedrooms. Let's take a look at what we're working with on the first floor. Upstairs you have,
05:11well that's quite interesting, you've got a small toilet area. Often you might expect to find your small
05:18WC downstairs with a basin and then your bigger family style bathroom upstairs. It's the reverse
05:24here but it's great that the plumbing's in place. Then the first of your bedrooms at the back of the
05:29property, it's a decent size off double, it's not bad at all. You've got nice wooden flooring, it's not
05:35laminate, it's wooden. Would you keep it? Often it's nice to have that kind of cushioned feel on your feet
05:41upstairs and have the wooden flooring downstairs. Maybe you could put some rugs. You don't want to
05:45entirely cover up that lovely wood. Oh, as I look up you have a ladder leading to a room. You
05:54can tell
05:55somebody's tried to make it look a bit livable. It's been plastered for a start but to market that
06:00as a separate bedroom or room you would need to install stairs and think about health and safety
06:07off that room. Then you come to your second bedroom again not a bad size off double. There's an awful
06:12lot of like pine effects going on which you might consider dated or you might love it. Then the third
06:20bedroom also a terrific size. This is the most spacious, best proportioned of the bedrooms. It's
06:27really fantastic. Yes it needs love, I can't see yet again any structural issues that are really
06:34concerning. Once you give it that love, this for me, the proportions, the layout, wonderful. It could
06:41be a terrific family home. This property seems like the full package. It's got a spacious interior,
06:55no signs of serious damage and has a guide price of only 130 000 pounds. But what's the opinion of
07:03a
07:03professional? We invited a property expert from the auction house that sold this three-bed mid-terrace
07:10to hear his thoughts and valuations. The property seems to be a little bit tired inside. The carpets
07:18are very worn, the decor is dated, but other than that the room sizes are very good. There's lots of
07:24potential here. So if a buyer was to renovate and spruce it up, what could it be worth on the
07:31resale 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.
07:41And for rental? The rental figures, once the property's done up, I would expect £950 per calendar
07:49month to £1,150 per calendar month. This three-bed mid-terrace has a lot going for it, or at
07:59least it could do,
08:00once it's been given a large dose of tender love and care. I love the location in the coastal town
08:07of Carnoustie, it's wonderful. The 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 remote 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.
08:51Ross, I'm very pleased to meet you. Hi, 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 10 minutes away, so fantastic.
09:01So where do you live? I live in Monifeth.
09:04Monifeth, lovely as well. I love all the coastal areas along this.
09:08Good park for taking a dog. Yes.
09:11Do you have a dog? Yeah, he loves getting out and about.
09:13What's his name? Buddy. Buddy, 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? No.
09:27What's your story? Is this your first home of your own or...?
09:31The first property I bought myself, yeah, so I've been renting before,
09:34so this is the first one I've bought, so exciting things.
09:37Erm, the guide price here was £130. You got it for a bit less?
09:41£115, yeah.
09:42So how did that work? Did you go to the auction?
09:45So it was all done by phone. The auction house were quite helpful.
09:49It wasn't for them, they wouldn't be standing here right now.
09:52And then you're in the position where you're entering the house.
09:56I'm guessing you had seen the house and read the legal pack?
09:59Er, no. Oh.
10:01So all I managed to see was the online video of the property
10:04and the home report. When the auction house phoned,
10:07it all kind of took off from there, so it was really, really quick.
10:09Yeah. What keeps you busy? Is there a day job?
10:13Er, yeah, so I'm a regional painter and decorator.
10:14So Dundeen around, painter and decorator,
10:17are your own business work for yourself?
10:18Er, no, 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.
10:27Yeah, no.
10:28But it needs a real modernisation.
10:31Tell me about your plans.
10:33Tell me about your to-do list. What are you going to do?
10:35Er, just give it a good decorator throughout,
10:38put a few bits of paper up and then a good paint.
10:41So some painting, some wallpaper?
10:44No changes to layout?
10:45No, no changes to layout.
10:47When you've got a kitchen that's a great size like that, there's...
10:49Yeah, so much potential.
10:51Yeah.
10:51So that'll be coming out, new kitchen get put in.
10:53So new kitchen, third decoration.
10:55Are you changing not the layout, but anything like doors, internal doors?
11:00Er, possibly 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, just keep it as storage.
11:20Yeah.
11:20So maybe a games room or something just for myself or a wee hobby room,
11:23but nothing more than 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. And has it got a drop of carb already?
11:30It does, yeah.
11:31So that'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, a buddy will love it.
11:37Yeah, a 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?
11:45Er, the greenhouse will be going up.
11:47Greenhouse, good, good.
11:48Get some tomatoes growing.
11:49Brilliant.
11:49You cannot beat the smell of...
11:51Oh, I know.
11:52..tomatoes.
11:52On the vine.
11:53On the vine?
11:54Mm-hm.
11:54And what's your budget here, Ross?
11:57Because I'll be doing most of it myself, a couple of thousand.
12:00Even with the kitchen?
12:01Yeah, I've got pals that'll do the electricity and the gas
12:04and possibly move the boiler if we need to.
12:07And when will you be inviting us back to see your finished results?
12:12Er, probably 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.
12:27A lot of potential.
12:28Yeah.
12:28A lot of potential.
12:29It's so close to home as well, so...
12:31Fantastic.
12:32Well, Ross, I wish you the very best of luck.
12:34Thank 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.
12:57Though that 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?
13:02How will it look?
13:04You can find out later in the show.
13:10We're heading north of Liverpool city centre and the town of Buttle.
13:14Once a fashionable Victorian seaside resort, where the wealthy came to escape the city and
13:20take in the sea air, by the start of the 20th century, as Liverpool expanded,
13:25Buttle's proximity to the docks made it a thriving hub for workers and a bustling residential area.
13:32And today, with excellent transport links and ongoing regeneration, it remains an attractive
13:37option for buyers.
13:39I'm not too far away from the centre of Liverpool in a place called Buttle.
13:43And I'm here to see a house which sounds too good to be true because it's a mid-terrace house,
13:50five beds, and 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, you never know, you never know.
14:07Yeah, I know, but I don't know, I don't know, I don't know, that I want you.
14:22Right. That was shorter than normal, that one.
14:26Erm, yeah, didn't feel very comfortable in there, the floors are rotting, there's holes everywhere as well.
14:32There was really bad holes in the ceiling, so I don't want to be walking around and find myself
14:38falling through the floor at any time.
14:41It's safe out here.
14:42Don't worry, Dion, we've got you covered, as our highly trained crew were able to safely enter
14:48some 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,
15:10again with furniture to clear and more broken flooring.
15:16And 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, and 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, that's just going beyond a little bit in a window and stopping a window
15:57closing.
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,
16:18the three colourful bedrooms have varying degrees of rotten floorboards,
16:22collapsed ceilings, peeling walls, and warped woodwork.
16:28Although the bold colour choices continue on the second floor,
16:32the two bedrooms appear to be in slightly better condition.
16:35At one time, this may well have been a bright and vibrant property,
16:39but after years of neglect, it's definitely lost its sparkle.
16:43Everyone asks me, who the hell is she, if I could know if I'd come to enter the air.
16:55Okay, I know what you're thinking. What do you do with it, Dionne?
16:59Well, we're kind of lucky 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 red tape to get through, and they would all need different
17:20budgets as well. What you will need for all three of those markets is a good team to turn it
17:26around.
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
17:40the rooms in the property to get his thoughts and valuations on this five-bed mid-terrace guided at £55
17:48,000.
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. For example, if you were
18:12converting the property into an HMO, you might drop the ceiling on the first floor, so in the top
18:16floor you can extend the rooms there, maybe add some ensuite or make an HMO perspective. From a
18:22family perspective as well, it's got good-sized rooms, 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. However, if the property was
18:45converted into an HMO, I would say it would certainly increase the value, especially with a
18:50five or six bed with en-suites. And what rental value could it yield as a family home or an
18:57HMO?
18:59Once renovated, if the property was rented to a family as a five-bedroom property, I would estimate
19:04a rental appraisal of £1,200 per calendar month. If the property was converted into an HMO,
19:10I would estimate a rental appraisal of between £400 and £450 per room, and it can be converted
19:15into a six bed, so the rental potential there is up to £2,700 per calendar month.
19:21Well, that £55,000 guide price, I did wonder, is it too good to be true? And it was. This
19:29is a big
19:30job. And with this big job, you're going to need a big budget, you're going to need a big team
19:35of workers,
19:35and you're going to need a big time scale as well. And you're going to need to be big and
19:41brave
19:41to put your paddle up and win this one at auction. Let'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. He's recently taken the
20:06plunge into property development, and with only one project behind him, he felt ready to take on a
20:12bigger and bolder challenge. He met Dion in the garden to tell him the plans for this latest purchase.
20:19Victor, 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? No. I already live in London, and I worked on another project
20:31where I am living at the moment. And I wanted to work on a project that required a lot of
20:37work.
20:38I didn't realise, and I got it. You know, be careful for what you wish for. But I saw it
20:45online,
20:45and I was fascinated about, you know, the potential that it could have. And yeah, and I went for it.
20:52OK, so you're based in London? I'm based in London. So, um, are you going to be here for this
20:57renovation, or are you going to get somebody to do it for you? I will manage it, but I will,
21:03uh, I will get contractors to work on it. OK. Yes. From the area? Um, I have a preferred contractor
21:10that
21:10already worked on a project in London, so he may come over, he may camp out in the property while
21:16doing the works. OK. Gotcha. Yeah. Um, what's the plan for it? Is it, um, sell or rent? Um,
21:22it would be to keep and, and then turn it into an HMO. OK. Yes. OK, so you keep it
21:29in, what,
21:29five-bed HMO? It will be a six-bedroom HMO. OK, six-bed HMO here. Correct. Um,
21:35how much do you think that will cost you to turn it around? The original plan was to spend 50
21:40,000,
21:41which, uh, doesn't seem realistic now, but, uh, I'm getting quotes. So you're just, you're in the,
21:46in the middle of getting all that money? I'm getting in the middle of getting, I, uh, I mean,
21:50just Windows is already £10,000, you know, so, so yeah, so it'll be a surprise. OK, so do you
21:57know what
21:58you would like to spend? Do you have a limit on what you would like to spend? I would love
22:02to spend less
22:02than 100,000. OK, good for you. How long do you think it will take you then to turn this,
22:07from what it is, and there's a lot of work to be done in there, a lot of work, to
22:10the HMO?
22:11Take me no more than this year, so maybe about six to eight months. Six to eight months
22:16till finish, then it's on the market. So will you, will you pop up from London once a week,
22:21twice a week? Correct, yes. I'll be coming up regularly to, to manage the project. Do you do this
22:27full-time? Do you have a full-time job? What do you do? I'm, I'm a lawyer by, by training,
22:32but, um,
22:32I haven't been doing it for a, for a little bit. Um, I was looking for something a bit that
22:38required
22:38more creativity. OK. And, uh, rather than reading contracts. OK. So, so yeah, I, I love doing this.
22:45I already worked on a project in London, as I, as I mentioned, and, uh, I, I love it. I,
22:49you know,
22:50just, uh, figuring out the, the layouts and where walls could go, which could be turned,
22:56you know, destroyed and, and make a beautiful place out of a not so beautiful. Absolutely. Yeah.
23:02Well, I can hear the passion in your voice. Um, you mentioned, you know, moving things around,
23:06and how are you going to create the bedroom situation? How's it going to work?
23:11Most of the bedrooms are going to stay the same. No walls are going to be moved. OK.
23:16What we're going to do is build, uh, an ensuite in each of the bedrooms. There is a space, uh,
23:24between the roof, uh, and the second floor that could be used for an extra bathroom. OK. Uh,
23:30I'll just need to lower the floor of the room below just to give it enough height. Yes, yes. Uh,
23:35but those are the main changes. OK. So you'll end up with six, six bedrooms? Six bedrooms, uh,
23:40uh, a kitchen area and the lounge. That's brilliant. So you're, you're actually maximizing
23:45all the space. Correct. That this property has. That's right. And that's all within the budget as
23:50well. Uh, ideally, you know, like, uh, I, I'll have to find out. Yes. Hopefully. Hopefully.
23:58Hopefully. We'll, we'll hope. Good on the best. Good on you. Yeah. Listen, um, welcome to Liverpool
24:03and good luck with this, um, this renovation. I think you'll be fine. Take your time. Don't rush it.
24:08And, uh, hopefully it'll turn out well for you. Good luck. Thank you.
24:13Well, Victor's definitely not work shy. I'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 and the sleeves will need to be
24:24rolled
24:24up. He's given himself a hundred grand. I think that will be just enough to get this done. You can
24:31find out how he gets on with his team right through the shop. Still to come, Jackie gets locked in
24:39at her
24:40auction lot in Basildon. And unfortunately, I can't get out. And will Victor be victorious when we return
24:50to Bootle? After the builders remove the ceiling, we realize the extent of the damage.
24:59Back to the east coast of Scotland now and the town of Carnoustie, where I saw a three-bed mid
25:05-terrace
25:06that came with a guide price of £130,000. Just now, it is pretty dated. It's clearly not been touched
25:14for a while. The spacious layout worked well, but the decor had me pining for modernization.
25:24Yes, it needs love. Once you give it that love, this, for me, the proportions, the layout, wonderful,
25:30it could be a terrific family home. It was local painter and decorator Ross that picked up the lot
25:36with the telephone bid of £115,000. This was his first ever property purchase and he'd bought it for
25:44him and his dog Buddy to live in. Tell me about your plans. Tell me about your to-do list.
25:51What are you
25:51going to do? Just give it a good decorated thrill. New kitchen get put in. Put a few bits of
25:56paper up
25:57and then a good paint. He planned to renovate the property on a shoestring budget of just £2,000
26:04and hope to have the work finished in six months. Now we're back nine months after our first visit.
26:14And the curb appeal has certainly improved with 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.
26:35Ross 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 and it was a bit
26:47spongy.
26:48So it was basically what went through the floorboard. So I had to put a new bath in,
26:51get it all plumbed in. And yeah, it's been fine so far.
26:56The kitchen was the main project. As we got that ripped out, then we realised the floor had to be
27:01ripped out, which was an inch thick of concrete with tiles on top, so I had to get my mate
27:04to help
27:05us rip that off, so that was fun. And then get a kitchen delivered, I put that in, most of
27:11it myself.
27:14I got help from a few friends, his friend's dad and his brother, so that was good.
27:21And then obviously I just had a look of paint, redecoration. We just kept everything neutral,
27:26white's a nice bright colour, opens 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. When we first moved in, the back garden was well overgrown,
27:42so all that got cut back. And then since it's all been tidy, as you can see, I've got the
27:47fish
27:47tank there, which I built myself. Put a wee paving slabs down, put a greenhouse up, my wee hobby,
27:55tomatoes and strawberries with some onions. Built that as well. Nice wee summer project to have.
28:02As well as the two fish tanks, eagle-eyed viewers may have spotted evidence of other pets living in
28:08the house. So just how many animals does Ross live with?
28:12I've got a buddy of the dog, two cats, a couple of snakes upstairs. Very busy household just for me.
28:19With Ross currently working full-time and having a menagerie of pets to look after,
28:25his time was constricted when it came to the work. Luckily, he could rely on friends and family to
28:31stop the project getting dogged down. A lot of friends and family were here. I did most of it
28:37myself. A couple of chase people. My dad helped me do some stripping just to get the walls all prepared.
28:44Got a mate's dad, he's a joiner. He'd done the work tops and put in some units as well, so
28:48just to
28:49help us out. So 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. But did the hurdles here
29:08also impact his relatively low budget of just £2,000? So the original budget was about a couple of
29:16thousand pounds, but due to me living in it, I went a wee bit of extra with the kitchen, bought
29:21some
29:21furniture. So really we're just looking at about £5,000. So including the purchase price, Ross has
29:29invested £120,000 into his new home. And while this project was never about turning a profit,
29:36it will be reassuring to hear if Ross has spent his money wisely. We asked back the expert from the
29:42auction house who sold it to find out what he makes of the changes. The main thing that has changed
29:48is the
29:49gardens. Obviously the front of the property was very untidy, as was the back garden. So that's all
29:55been tidied up and looking really fresh. The 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. He clearly loves his animals here,
30:06so it is a welcoming house. The expert believes that if Ross were to rent the property, he could achieve
30:14as high as £1,150 per calendar month, which equates to a fantastic yield of 11 and a half percent.
30:23But will the increase in the sales value be as impressive? For the sales market, I would expect
30:28a figure of £145,000 to £165,000. Fantastic. Just what you want. Perfect. Didn't think it would be that
30:38high.
30:38But yeah, good valuation. If Ross can achieve the expert's top figure, he could be looking at a
30:45pre-tax profit of £45,000 if he ever decides to sell his house. Not a bad markup for a
30:52£5,000 renovation.
30:54But this was never about profit. It was about making his first home off his own come to life. And
31:00in that
31:01respect, the value Ross, his friends and family and pets have added here is priceless.
31:09It's just been so busy working at night, working your days off, one day off at the weekend. But now
31:14just to, you know what it's done. Just time to chill out, enjoy some of the garden, have a couple
31:19of
31:19drinks and just get back to having a social life is probably the best bit. And this one as well.
31:31Just over 30 miles east of London is the town of Basildon in Essex. With great transport links,
31:38a busy town centre and plenty of green space nearby, it's no surprise it's become a popular spot for
31:44commuters, families and investors alike. It's here we found our next auction lot and Jackie's on her
31:51way to check it out. Well, I'm about a mile from Basildon town centre with its train station and
31:58amenities. And the property I'm here to see is off this road and up this path. That means you don't
32:05have any parking right outside, but there is parking on the other side of the pathway. Now it's a three
32:11bed semi that went to auction for a guide price of £185,000. And it's quite a substantial lot,
32:19actually, because here it is. You've got a nice expanse of a front garden. Yes, it needs a bit of
32:24a tidy up,
32:25maybe a nice fence. You do have side access to your garden, which is always grand. Yeah, you know,
32:31this looks like a typical hammer lot. Let's take a look.
32:39Oh, it's a bit tight. Um, it's nice to have this little porch area, but I'd like to
32:46push this out a bit, then it becomes a definite space. Um, I see some of the neighbours have done
32:50that. Okay, so you've got a downstairs loo, which is always good, but it has to all be ripped out,
32:56add a sink in there. And then you're straight into your kitchen dining space. All very dated,
33:04all very dusty. Um, obviously all the windows have been smashed out because it's all boarded up.
33:10You've got a door going out to the garden. It needs someone to come in and actually just sort of
33:15rip it all out and start again, but it's a good size. Let's carry on.
33:22Oh, okay. So your reception room and the flooring continues. Um, nice views out to your green at the
33:31front. Um, dated fireplace that has to go. I'd like to see something reinstated. That's a little bit more
33:36modern. Dated lighting throughout. So electrics, lighting, um, heating, because there's only storage
33:43heaters I can see so far. And then you've got double doors leading out to your overgrown garden.
33:50And unfortunately, I can't get out. But aha, there is side access. Where there's a will,
34:03there's a way. So, oh my goodness, there's a lot of stuff out here. And it is seriously overgrown.
34:13And you've got this sort of half brick outhouse that needs to go. Um, but looking back at the house,
34:21it is a great plot. It is a great size. But could you make it even greater? I see some
34:26of the
34:26neighboring properties have extended out. And even if you extend it out within permitted development,
34:31imagine the space that you would have on the ground floor. But you've got to roll up your sleeves
34:37and get stuck in. Okay, I'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 to your property without
34:49full planning permission, thanks to what's known as permitted development rights. For example,
34:54in England, a semi-detached house can often be extended by up to three meters. But there are
35:01exceptions, especially for listed buildings or homes in conservation areas. So it's always best to check
35:07with your local council before making any plans. And for this property, best to check what's upstairs
35:13first. So up to your first floor, floors have been stripped back. I can see peeling wallpaper there.
35:19You've got a very... What can I say? What's a nice word to say? It just needs to go.
35:26That bathroom. But a good size. And then you've got your first of your bedrooms. Again, a decent size.
35:33There is some storage in there. Whether you like the louvre doors or not, I don't know. I can see
35:37there's a loft hatch. Always good for storage. But of course, you have to have that insulated. Then you've
35:43got your... I call it a box room. It's not too bad. You could fit a little single bed in
35:49there. And then
35:50into your final bedroom. Once again, lots of peeling wallpaper, textured ceilings. A little bit of storage
35:57here. And then... Oh! Storage here. Oh, my goodness. That's massive. This is massive storage.
36:07I love a good wardrobe, but this feels like... It almost feels like a walk-in wardrobe, like a dressing
36:14room.
36:17Look at that. Look. But wait. Look at that. Look at that. Look at that. There's a lot. I mean,
36:24it's great, but does it take up too much room? I don't know. You'd have to think about that one.
36:31But not too bad. Everything in this property just needs someone to come in, strip it all back,
36:39get rid of everything, and then really put your mark on it. And then this place could be quite spectacular.
36:51One important detail worth noting is that this property has an EPC, Energy Performance Certificate,
36:57rated F, which is currently below the minimum of the E required for rental properties in England and
37:04Wales. But whether for the rental market or not, installing new double glazing, insulation,
37:10and an energy-efficient heating system would help reduce the energy bills, keep the property warm and
37:16cosy over the winter, and overall be much better for the environment. So, what will a property expert
37:22make of it? We asked one along from the auction house who sold it for his thoughts and valuations
37:28on this three-bed semi that came with a guide price of £185,000.
37:35My first impression of the house is it's a classic auction. It's very unmodernised and needs lots of
37:39work doing to it. Structurally, you could put a ground floor extension if you really wanted to,
37:45but actually, I think the layout's pretty good. You've got three bedrooms upstairs,
37:48you've got your bathroom upstairs, which is always good, and downstairs, I actually like the layout.
37:53What work would he suggest carrying out? In terms of the works required, I don't think there's
37:58anything too structurally unsound from what I can see. I'd put new flooring, I'd get it stripped out,
38:03do the walls, make it look nice. But 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, I would expect it to achieve, on the resale side,
38:19around £375,000. And if they were looking to rent it out, I think it would achieve around £1,500
38:25per calendar month. Well, this is a good-sized, solid property, although it has seen better days.
38:35But give it the full cosmetic rework, sort out that overgrown garden, up your EPC rating,
38:41and perhaps even extend out back. This could be transformed into a wonderful home. Who agreed?
38:48Let's find out when it went under the hammer.
38:55This lot was part of our remote auction, with bids taking place online.
39:03The hammer came down at £277,000, with the winning bid made by Bissy and his wife, Esther.
39:11With a portfolio that spans both residential and commercial rentals, Bissy is no stranger to the
39:18property world. Jackie met him to hear what his plans are for this latest edition.
39:27Bissy, lovely to meet you. Lovely to meet you, too. I know this property is dated,
39:32and it needs a lot doing to it, but it's solid, and it's kind of roomy. But why did you
39:38go for
39:38this property in this area? I know Basilden quite well. We have another property here, too. I thought
39:46it was a good guide price, and then, yes, that was it. Very good. Are you local, lad? About 15
39:53minutes
39:53away. Right. That's not bad. And then, as you say, you've got another property? Yes. In the area?
39:58In the area, yes. Oh, wow. So, is that what you do? Not full-time. I consider myself a part
40:03-time
40:04property developer, but I also have a day job. It's in information security. Oh. Yes. Mum's the word.
40:13Sorry. And then, how long have you been doing property development? 2014, precisely. Wow. So,
40:21what is that? Okay. So, over a decade? Not for the whole time. Um, about 2016, I went into property
40:29full-time. I did it for a few years, and then I had to return back to paid employment,
40:36nine-to-five, due to some, um, circumstances. Right. And then, um, a few years down the line,
40:41I'm back fully... Oh, very good. ...into, into property. Hopefully, this works,
40:45and then we'll take you from there onward and upwards. And you keep growing. Yeah. Yeah. Fantastic.
40:50And then, and what about before the auction? Did you visit the property? No.
40:55Busy? No. You didn't visit the property? Well, I didn't see the internal part of the property,
41:02but I... Just saw the outside. Yeah, saw the outside. So, if that counts. Oh, wow. So, when you did
41:07eventually come to the property, what did you think? I was happy. Yeah. I was happy with it. Um, no,
41:13no surprises at all. No.
41:15What are you going to do to this place? We plan to convert this into a five-bedroom HMO.
41:21Really? Yes. Is that what you do in your property developing? Is that... Uh, no. You do HMOs?
41:26No. This is the first HMO I'm doing, actually. So, this is the first house of multiple occupancy
41:30you're going to do? Yes. Wow. So, uh, the plan is to have, uh, three bedrooms upstairs.
41:36All of them are going to be, we'll have on-suite shower rooms. We're going to be moving some walls
41:41around to get the, the right size of room. Yeah. We are going to remove the entire chimney stack
41:47as well to create some space. Two bedrooms are going to fit here. Um... In this space?
41:52Yes. Yes. Yes.
41:53And then we're relocating the kitchen diner into the lounge. Amazing.
41:59Bissi 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 license and managing a team of
42:09trades. Bissi will also take the lead on the interior design, hoping to get the project complete
42:15with a budget of 65,000 pounds within eight to 12 weeks. Currently, this property has an energy
42:23performance certificate rating of F. So, to raise that, while you're stripping everything back,
42:28is that insulation going to be happening? Floors, walls, lofts? Lofts, everywhere, yes. And then we're
42:34having new windows installed, a gas central heating combination boiler with a, um, cylinder,
42:40or two other cylinder as well, to serve, you know, five bedrooms. Five bedrooms. Absolutely.
42:44You know, it's a lot of work, but you've got, obviously, you're an experienced developer and
42:49you've got your team. I wish you the very best of luck. I really do. Thank you. It was good
42:54to meet
42:54you. Same. Likewise. Thank you very much. Thank you. So, Bissi has plenty of property developing
43:02experience behind him, but this one's a bit different. This is his first time tackling a HMO. He has his
43:09plans. He has the trades in place. They are ready to go. And I really hope that this project runs
43:16smoothly for him so he can get back to full-time property developing once again. And you can find
43:22out 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. But, unfortunately for Dion, there was a good reason for the low price tag.
43:43Yeah, didn't feel very comfortable in there. The floors are rotting. There's holes everywhere as
43:49well. I don't want to be walking around and find myself falling through the floor at any time.
43:55It's safe out here. With a bid of £71,500, it was bought by a lawyer turned property developer
44:02Victor. He already had one project behind him and on paper, this renovation was right up the street.
44:10Why did you want the house in the first place? What did you buy it for? Rent or sell or
44:14you want to live in it?
44:15Um, no. I already live in London and I worked on another project where I am living at the moment.
44:21OK. And I wanted to work on a project that required a lot of work. I didn't realise and I
44:27got it. You
44:28know, be careful for what you wish for. Victor would project manage a team of builders who were set to
44:35turn this five-bed semi into a six-bed house of multiple occupancy. He wanted to keep a spend under
44:42£100,000 and hoped to have the work finished in six to eight months. Now we're back two and a
44:49half
44:49months 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
45:11also 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
45:27to rebuild a lot of the walls, rebuild a lot of the ceilings, patch up the roof. And I also
45:34got
45:35a window installer to install 12 windows. All of the windows were replaced. The electrical wiring has
45:42been put in most part, about 80% of it has been done.
45:51Plumbing has also started and yeah, we're in the process of continuing that work,
45:57building the structures as all of the bedrooms will have en suites. So the structure for all of those
46:04bedrooms has been built. Some bedrooms are bigger than others. Some of them accommodate a small double
46:11bed, others a double bed or even a king size bed. So in relation to the loft, the original plan
46:21was to
46:22lower the floor. So on recommendation of our architect, who deemed that it was necessary,
46:29we kept the level as it is and simply removed some of the walls under the pitch roof, allowing for
46:35more
46:36space for an ensuite bathroom. Victor used the old lounge space to create his sixth bedroom. So now,
46:44he just needs to install the kitchen and bathrooms, plaster and decorate and this HMO will be good to 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
47:05of the new windows. In relation to the water damage, it was hard to assess the damage because, you know,
47:12it was all covered up. It was only after the builders removed the ceiling boards and the boards covering the
47:21roof that we realised the extent of the damage and the cause was that there were holes all over the
47:28roof.
47:29We basically have new roofs and new ceilings. Victor's team of builders are going great guns
47:37on this renovation and he believes the work should be finished within the next four months. The quick
47:43turnaround has been bolstered by Victor mucking in with the work too, helping with the ripout to reduce
47:49on his labour costs. But has his thrifty thinking stopped his budget from drifting above his intended
47:56max spend of £100,000? I have overspent now at £170,000. However, most of the expenses or things
48:07that I need to buy have been purchased and I'm hoping that the budget will not go any much higher
48:14than that.
48:17Victor's application for change of use for the property from a single dwelling to an HMO has
48:23received positive feedback from the council, meaning it should just be a matter of time before he gets
48:28his approval through. In the meantime, let's check back with the estate agent who viewed the property
48:33last time to see what he thinks of the work so far. There's a lot of changes, the layout specifically,
48:40you can now see it certainly taking shape. So there's six double bedrooms and you can see the
48:44en-suites already going in, the kitchen's nicely opened up into the back garden and there's a
48:49separate bathroom and lounge area as well so you 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
49:04£241,500 including the purchase price once the work is complete. So how much could it be worth on
49:10the sales market? If 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
49:32£118,000, while 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,
49:53totalling £2,700 per candidate a month. I think it's on the low side. It's not
49:59too far from my estimate, but I think each of the rooms can potentially get between
50:08£450 to £550,000 depending on the standard of the rooms. As I'm going to keep the standard high,
50:17I'm hoping to get the higher end of that rental. Even if he can only hit the lower rental valuation,
50:25Victor would still be looking at a yield of over 13%. So as long as his budget doesn't creep any
50:31higher,
50:32he should be on to a winner here. And once it's finished, we'll be back to see how it all
50:37turns out.
50:39The plan going forward is to finish this project, re-mortgage, free up 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,
50:59and it was in need of a thorough renovation throughout. It needs someone to come in and
51:05actually just sort of rip it all out and start again, but it's a good size. And it wasn't just
51:11the inside that was in need of a full rip out. There's a lot of stuff out here and it
51:17is seriously
51:19overgrown. Up to the task was part-time property developer, Bissy, who along with his wife, Esther,
51:26picked up the lot for the successful bid of £277,000. And although they had several properties
51:33under their belt, this project was to be a new challenge for the duo.
51:39What are you going to do to this place? We plan to convert this into a five bedroom HMO.
51:45Really? Yes. Is that what you do in your property developing? You do HMOs? No, this is the first
51:50HMO I'm doing actually. So this is the first house of multiple occupancy you're going to do? Yes.
51:56They had a budget of £65,000 and hoped to have the rooms ready for rent within 8 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 en suite. It was a bit challenging because we needed to think
52:26about how to run the soil pipes, how that's going to run to the external drainage area. So it was
52:32quite
52:33challenging doing that, but we got there in the end, I would say.
52:39It's all been furnished as well. We'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, meaning the original open plan kitchen
52:59diner could be converted into two new en suite bedrooms. Upstairs, the task to create three more
53:06en 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 requirement for bedroom sizes, which is meant to be 8.5 square meters.
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
53:36under permitted development. And by adding a new energy efficient heating system, double glazing and
53:42better insulation throughout, the property's EPC rating has risen from an F to a D, making it okay to rent.
53:50Now, Bissey is just waiting for sign off on his HMO license.
53:54I think the timeline is about four to six weeks. I don't think it's difficult at all. As long as
54:01you meet
54:01all 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, but the paving
54:13has
54:14been finished and a new door and roof has been installed on the outhouse so tenants can store
54:20their bikes. But did Bissey 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. We had a builder that did all the work,
54:38apart from flooring, carpeting some of the bedrooms. Esther is my partner. She was on site a lot of
54:49the time as well. She helped in making lots of, you know, the orders, looking after the furnishing
54:56part of things as well, and then just general support and being there.
55:02The team were able to complete the work within the proposed time frame of 12 weeks,
55:07but was Bissey as fortunate when it came to sticking to his original budget of £65,000.
55:14We've gone way over that. It's ended up being about £75,000 to £80,000. But that's inclusive of
55:21the landscaping works, paving outside, getting an artificial grass and then I'm still quite happy.
55:29I knew that the budget we had was a bit ambitious. So, yeah.
55:35The extra work, including the garden, has brought Bissey and Esther's total spend to
55:41around £357,000. So, will the extra work they've put into this property pay off when it comes to the
55:49potential rental returns? We asked back the expert from the auction house who viewed the property last
55:54time to find out. So, this is my second time at the property and I have to say my first
55:59impression is
56:00I'm really impressed. The 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. They'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, the HMO could achieve an impressive
56:22£550,000, which could see Bissey and Esther with a pre-tax profit of £193,000. But as they have
56:31long-term plans to rent the rooms individually, it's these figures that Bissey will be interested to hear.
56:38From a rental perspective on a room-by-room basis, just taking each room on its own,
56:42I think you'd be looking to, in a good scenario, get £800 a month. I think, though, just to get
56:48them let, you might take a bit less than that, maybe even somewhere between £750 and £800.
56:54We've advertised at about £825 to £850. £850 room has been taken. One 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, they could be looking at a yearly income
57:18of around £49,000, which equates to a yield of nearly 14%. A fantastic result for the couple's
57:26first foray into HMO rentals. So does that mean they'll be back for round two?
57:33This project has taken its toll on me. It's been quite challenging. However, we're going on to the
57:43next project. I've got a property that we're moving onto to do this same thing on. Same in Basilding. So,
57:51by about two weeks, three weeks' time, we should be ready to start on that one. So, no retreat at
57:57all, though.
58:02Renovating a property comes with its fair share of ups and downs. And we've got plenty more
58:08rollercoaster ride stories just like today's. So make sure you join us right here next time
58:13on HOMES UNDER THE HAMMER. Bye-bye.
58:15Than he.
58:25.
58:27.
58:32.
58:36Transcription by CastingWords
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