BBC Homes Under The Hammer house so 'dated' it was left 'unmortgageable'

A property that featured on BBC's Homes Under the Hammer was left in such a bad state that it was deemed 'unmortgageable' - but after a huge renovation it was worth a lot more

A property showcased on BBC's Homes Under The Hammer was in such a dire state that it was deemed 'unmortgageable'. The substantial four-storey house, which appeared on the programme with a guide price of £199,000, caught the attention of presenter Martin Roberts for its attractive price.

However, he advised caution regarding the investment. The terraced house boasted a basement, a loft conversion, and notably high ceilings.

While the ground floor had been refurbished, the shower room was noticeably out-of-date. Commenting on the Newport, Wales property, Martin remarked: "It's a grand building with some grand opportunities presenting themselves."

Yet, as he explored further, particularly when ascending to the upper floors, the extent of renovation required became apparent.

"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 explained, reports the Mirror.

Martin issued a cautious note 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."

He also highlighted a unique circumstance for would-be purchasers as the property was inhabited by a paying tenant in the basement, urging caution: "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."

Despite certain drawbacks of the home, Cherylyn and her son Decody from Bristol chose to embark on the renovation project, aiming to convert the house into a six-bedroom HMO within a mere six months. This ambitious timeline was due to their reliance on a bridging loan, which typically incurs higher interest rates than a standard buy-to-let mortgage.

The archaic state of the home left them with no other financing options as it was considered unmortgageable.

They allocated a budget of £30,000 for the work and when the show revisited their progress thirteen months later, the house appeared entirely rejuvenated. Cherylyn and Decody exceeded their budget by £5,000, bringing their total expenditure to £235,000.

The property only required additional HMO features such as fire doors and alarms to be installed before the family could apply to Newport County Council for a HMO licence and start renting it out. Estate agents evaluated the property and appreciated the mother and son's hard work.

If sold as a family home, they could expect it to fetch around £250,000 but if sold as a business with HMO licensing, it could command between £350,000 and £370,000. However, if they chose to rent it out themselves, Cherylyn and Decody could anticipate an average income of £3,000 per month if all rooms were occupied.

Ultimately, this influenced their decision and they decided that renting was the best option.