Tuesday, August 9, 2022
HomeLifestyleHomes Under the Hammer buyers boost value of one-bed flat by £61,500...

Homes Under the Hammer buyers boost value of one-bed flat by £61,500 in £16k renovation

On an episode of Homes Under the Hammer, Dion Dublin visited a one-bedroom flat in Teddington in Richmond upon Thames, London. The areas is great for families and is home to the second largest of all of London’s royal parks. The small, 1950s flat had a guide price of £120,000 at auction in February 2019 and was in need of some simple upgrades.

Before the flat went to auction, Dion had a look around the flat.

The property appeared to be a bit “dated” with a 1970s-style kitchen, an “old fashioned bathroom” and bright-coloured walls.

Despite its appearance, the flat had a good-sized lounge and bedroom, radiators and relatively new double-glazed windows.

The property even had a private backyard which was big enough for a garden shed and a washing line.

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The new owners were hoping to extend the lease eventually, but said they might rent it out first.

They planned to renovate the flat with a £15,000 budget in just eight weeks.

Homes Under the Hammer returned three months later to see the finished renovation.

The property has been completely re-wired, re-painted and re-plastered with new carpets, a modern bathroom, a new kitchen and cushioned vinyl flooring throughout.

The back garden was “spruced up” with a low maintenance synthetic turf.

The new kitchen was designed especially for the home.

They also made the cupboard in the hallway smaller so they could extend the entrance into the bathroom.

The white walls make the property look bright and clean.

The lease extension price was confirmed to be £83,000 which would extend the lease from 37 years to 127 years.

The trio spent £16,500 on the renovation which is £1,500 above their original budget.

The spend included the electrics which they didn’t think they would need to re-wire, and the integrated appliances such as a fridge-freezer, dishwasher and washing machine.

The trio needed to put those appliances in as they planned to rent out the property.

They spend a total of £180,500, and purchasing the lease extension would take that value up to £263,500.

Local estate agents said the property could re-sell for between £315,000 and £325,000.

That’s a profit of £61,500 before tax and fees.

The estate agents said the property could be rented anywhere in the region of £1,100 and £1,150 per calendar month.

If they can get £1,200 per month, that would give them a yield of almost 5.5 percent.

Homes Under the Hammer is available to stream on BBC iPlayer.



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