Homes Under The Hammer buyer would look for 'much more' after disappointing valuation
A Homes Under The Hammer buyer went significantly overbudget when converting a property, which ate into their potential profit.
Homes Under The Hammer: Property expert delivers their verdict
A Homes Under the Hammer buyer found their profit eaten into when they went hugely overbudget on their renovation, leaving them disappointed with the valuation they eventually received for the property on the BBC show. The property in Chatham had impressed Tommy Walsh when he went to view it for the programme.
The three bedroom mid-terrace had a guide price of £150,000. While there were some issues, including a chimney breast that had simply been covered up, and the property being in an awkward spot overall, presenter Tommy thought it was in "in good nick".
When he checked upstairs, he realised why the guide price was so low - there was no toilet in the upstairs bathroom. This meant, without altering the piping to install one, the occupants of all three bedrooms would have to use the single toilet downstairs.
Pre-auction, an expert predicted the property would be worth around £250,000-£260,000 post-renovation. On the rental market, he felt it could garner £1,300-£1,400 per calendar month.
It was purchased by a gentleman called Peter for £213,000 - a full £63,000 over the guide price. He has appeared on the show before when he transformed a four bedroom townhouse into a holiday let, and was planning to take on a similar project with this property.
Admitting the location was a bit of a selling point for him, he detailed his plans for the property, explaining he was planning to turn it into a five bedroom serviced property. He intended to get the extra bedrooms by converting the loft and building an extension.
As for the bathroom issue, he planned on removing the bath and putting in a shower, so that there would be room for another toilet.
He had a budget of £60,000 and planned on spending three months on the work. Unfortunately, his plan went a bit awry, and it became a far bigger job than he expected.
Peter conceded demolishing the chimney wasn’t very straightforward and said it was "a project on its own which required bringing in additional professionals".
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He conceded that he had gone significantly overbudget - spending £110,000. This brought his total outlay to £323,000.
When the expert came back to review his work, he said he was impressed by how bright and modern it was. "Now that it’s been refurbished it could achieve in the vicintiy the of £260,000-£265,000," he said.
However Peter was far from happy with this, saying: "With the £110,000 on the refurbishment and getting it up to standard, I would be looking for much more than that."
If he were to sell the property he would come in at a loss, but since it is part of Peter's long term portfolio he wasn't too concerned, ultimately, about the sale value.
Homes Under The Hammer is on BBC weekdays at 11.15pm.
