BBC Homes Under The Hammer 'uninhabitable' £5k property sells for ten times guide price
Martel Maxwell was tasked with checking out a Scottish property with a tiny guide price on Homes Under the Hammer.
Homes Under the Hammer: Martel views flat with £5k guide price
Homes Under The Hammer showcased a flat with a tiny guide price of just £5,000 on the latest episode of the BBC property show. Martel Maxwell went to Dumfermline to view the one bedroom flat saying "brace yourself" before she entered.
Needless to say, given the valuation, it was pretty much inhabitable. Martel was impressed that the flat had its own front door and good proportions. It also had double glazing and central heating and an outside space
However the flat also had no kitchen, crumbling plasterwork and bits of the ceiling were missing. Despite this Martel acknowledged she had seen worse. "All this potential with a guide price of only £5,000 will be tempting for any potential buyer. It may not be liveable in its current condition but there are plenty of positives," she conceded.
Prior to auction an expert gave a potential valuation of the refurbished property as £85,000 to £90,000 if the new owner were to sell it. For rental he said they could expect £550 to £575 per month.
When it went to auction it was purchased for over ten times the guide price for £52,000 by a man called Jordan who has plenty of experience developing properties for his rental portfolio having started when he was just 19.
Admitting he "hadn't done a project" in a while he admitted that he hadn;t actually viewed the property before purchase.
"It's certainly worse than I thought," he confessed but undaunted he laid out his plans for the property which involved reconfiguring the rooms and finishing it to a high spec.
He was hoping to turn the project around for £12,000 to £16,000 in the space of eight weeks. When the show revisited the property just 14 weeks later it was completely transformed and Jordan admitted he had gone for high end finishings.
An impressed Martel described it as clean, bright and modern although she was disappointed he didn't restore any of the period features to the property.
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Jordan admitted that there was a bit more work than he expected but he didn't go much over his budget spending only slightly over £20,000, bringing his spend to around £72,000.
When the show's expert returned to value the property they said the renovations he had done were really going to enhance the property.
They explained that the high end finishes meant it could sell for £85,000 to £95,000 even though the market was slow at the moment, which would gve the young developer a healthy profit..
However Jordan was sticking to his original plan to rent and already had a tenant in place when the expert said it could fetch £575 to £650 per month.
Homes Under The Hammer is on BBC One weekdays at 11.15am.