Homes Under The Hammer 'very dated' house so bad it was unmortgageable

15 September 2023 , 13:20

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Mother and son Cherylyn and Decody took on the challenge (Image: BBC)

A house that was featured on Homes Under The Hammer was left in such a bad condition, that it was unmortgageable.

The large four-storey property featured on the BBC show with a guide price of £199,000. Presenter Martin Roberts thought the price tag was extremely tempting but expressed his caution at taking on the property. The terraced home featured a basement and a loft conversion as well as some impressive ceiling heights. Downstairs had already been renovated, but the shower room was starkly outdated.

Speaking of the house in Newport, Wales, Martin said: "It's a grand building with some grand opportunities presenting themselves." But as he inspected the property, things took a turn for the worse when he climbed up the staircase to the next floor. "The higher up the house you get, the less renovated it appears, it's charming in its own way but very, very dated, and you don't have to be a rocket scientist or even an electrician to work out that this [the electrics] with its Bakelite switches and its old fashioned fuses is a very old electrical system," he shared.

The house was in such a bad condition buyers were not able to get a mortgage (BBC)

Martin gave a warning to potential buyers: "You'd probably want to replace the electrics anyway but it gives an indication that probably the rest of this building hasn't been touched for a very long time. But that has its bonuses - the doors you'll be able to strip back because they are all original and the floorboards seem to be in a really nice condition and then lovely little features like this fireplace so if you can retain some of that magic and that character, all well and good, but obviously the higher up the house you go, the higher the costs are going to be."

There was also quite an unusual set up for those looking to purchase the property as it was already home to a paying tenant in the basement. Martin urged: "Whenever you take on a property that isn't vacant possession, as in it has somebody as a sitting tenant, you've just got to make sure that all the right legal things are in place so that there is an assured shorthold tenancy agreement covering that person and also that you're happy with the amount of rent that you're paying."

Mum sells home for £18,000 profit after sprucing up the garden

Despite some issues with the home, Bristol-based duo Cherylyn and her son Decody decided to take on the project. They planned to turn the house into a HMO with six bedrooms in just six months. Their short time frame was due to the pair taking out a bridging loan, which usually charges higher interest rates than a buy-to-let mortgage. It was their only option as the dated house was deemed unmortgagable due to its condition.

They set a budget of £30,000 for the work and when the show returned to check in on their progress thirteen months later, the house looked completely revived. Cherylyn and Decody went £5,000 over budget, bringing their total spend to £235,000. It just needed HMO additional features such as fire doors and fire alarms to be installed before the family could apply to Newport County Council for a HMO licence and get tenants in.

Estate agents went to value the property and the mum and son's hard work. If sold as a family home, they could expect it to go for £250,000 but if sold as a business with HMO licensing, it could make between £350,000 and £370,000. However, if they wanted to rent it out themselves, Cherylyn and Decody could expect an average income of £3,000 per month if all rooms were let. Ultimately, that swayed their decision and decided renting was the way to go.

Mia O'Hare