0:00:02 > 0:00:05As property investors, we know that what goes up may come down.
0:00:05 > 0:00:09Everybody knows the property market has taken a tumble.
0:00:09 > 0:00:14- But it's not all that bad. - No, if you do your research, you can still bag a bargain at the auctions.
0:00:40 > 0:00:45Auctions are not everybody's cup of tea, but for many, it's the only way they'll buy.
0:00:45 > 0:00:50Yes, because at least you know when the hammer falls, the property will be yours within a few weeks.
0:00:50 > 0:00:55Let's see what's lurking in the auction catalogue in today's show.
0:00:55 > 0:01:00Is the profit margin of this Derby house going to be a squeeze?
0:01:00 > 0:01:03Horrible head height. It's really narrow and cramped.
0:01:05 > 0:01:11There's a large two-bed flat in Southampton where the entrance alone adds value.
0:01:11 > 0:01:14Just look at this wonderful landing area.
0:01:15 > 0:01:20And in Harlesden, North West London, a flat that certainly has handy transport links.
0:01:20 > 0:01:24Bus stop, property.
0:01:26 > 0:01:29All these properties have gone to auction.
0:01:29 > 0:01:33We'll be finding out who bought them and what they paid when they went under the hammer.
0:01:37 > 0:01:43I'm in Sponden, once a farming community, now more of a suburb of Derby with a village feel.
0:01:43 > 0:01:49It's actually split in half by the A52, which was re-named Brian Clough Way
0:01:49 > 0:01:54after the famous manager of Derby County and Nottingham Forest football teams.
0:01:54 > 0:01:58These towns are linked by the highway.
0:01:58 > 0:02:00The name is apt as he did normally get his own way.
0:02:00 > 0:02:04So, will today's property be Premier League or Sunday League?
0:02:04 > 0:02:09Well, this is Moore Street, pretty much in the centre of the village.
0:02:09 > 0:02:13Up for auction was a two-bedroomed end-of-terrace.
0:02:13 > 0:02:15It had a guide price of £50,000.
0:02:15 > 0:02:18End-of-terraces, a lot of people like.
0:02:18 > 0:02:22They are often a little bit larger. You maybe get an extra set of windows.
0:02:22 > 0:02:24Of course, you only have one set of neighbours.
0:02:24 > 0:02:27On the other side is a car park.
0:02:27 > 0:02:33Not great for kerb appeal. Add a run-down roof, some dodgy brickwork and the fact you are on a busy road,
0:02:33 > 0:02:39and I think it would be safe to say that Cloughy would be "sick as a parrot" with the game so far.
0:02:39 > 0:02:44Obviously, one of the big things here is going to be keeping noise from that road out of the house.
0:02:44 > 0:02:49It's good there's a little porch there. Also that the property's been double-glazed.
0:02:49 > 0:02:52Straightaway, big issues - this bay window.
0:02:52 > 0:02:54Wow. Lots and lots of damp.
0:02:54 > 0:02:59I think, judging by the way this is all laid out, that's actually coming down, rather than going up.
0:02:59 > 0:03:02Probably, this roof here wants to be checked out.
0:03:02 > 0:03:06Maybe the guttering's leaking. It needs sorted. The problem is,
0:03:06 > 0:03:10the water will get into the floorboards and also the joists and rot them.
0:03:10 > 0:03:12You'll have all sorts of problems.
0:03:12 > 0:03:13Look at this, though.
0:03:13 > 0:03:15Absolutely fantastic!
0:03:15 > 0:03:17Part-Victorian, part-1960s fireplace.
0:03:17 > 0:03:20This electric thing in there.
0:03:20 > 0:03:23Absolutely brilliant. Probably wants to be replaced.
0:03:23 > 0:03:27Moving on, the whole house in general needs sorting out.
0:03:27 > 0:03:31Into the rear room, lots of light pouring in from one of the side windows I talked about.
0:03:31 > 0:03:34Yes, there's a gas fire in here that needs sorting.
0:03:34 > 0:03:38Not a bad-sized room. Then through into the kitchen.
0:03:38 > 0:03:40Well, only just.
0:03:40 > 0:03:44I mean, there's this very strange hatchway thing going on for a start.
0:03:44 > 0:03:46The kitchen itself is absolutely tiny.
0:03:46 > 0:03:48In total need of refurbishment.
0:03:48 > 0:03:54But it gets a lot weirder, because this is the original rear door of the property.
0:03:54 > 0:03:58It leads into what I imagine was some kind of a courtyard.
0:03:58 > 0:04:01It's been covered in, very, very badly.
0:04:01 > 0:04:04Look at the head height here. You have a downstairs loo.
0:04:04 > 0:04:06Like a storage area there.
0:04:06 > 0:04:11Another area here. Like another courtyard.
0:04:11 > 0:04:15I really can't figure out what's going on, for the life of me.
0:04:15 > 0:04:18The only thing to do is to go outside and take a good look.
0:04:18 > 0:04:19From the outside, it's clear
0:04:19 > 0:04:26that someone has tried to turn the courtyard into an indoor space by using sheets of plastic as a roof.
0:04:26 > 0:04:31You don't need to be a structural engineer to see this is substandard and needs to go.
0:04:31 > 0:04:37It's a shame because these mushrooms aren't going to have MUSH room, ha-ha, soon.
0:04:37 > 0:04:43But, on the plus side, the garden does have plenty of space and there's access for car parking.
0:04:43 > 0:04:46So, downstairs then, pretty darn weird.
0:04:46 > 0:04:49How odd can upstairs be? Well, on the face of it, not too bad.
0:04:49 > 0:04:52Staircase coming up. Bedroom on that side.
0:04:52 > 0:04:57A bedroom here. OK so far, until you come to the bedroom cupboard.
0:04:57 > 0:05:02It's not a cupboard at all. It's a dark, dingy corridor.
0:05:02 > 0:05:04To where does it lead? Follow me, explorers.
0:05:04 > 0:05:09Look at this, horrible head height.
0:05:09 > 0:05:11Narrow and cramped.
0:05:11 > 0:05:15At the end, ta-da!
0:05:15 > 0:05:20The bathroom and loo. I guess the good news is, at least it's upstairs.
0:05:20 > 0:05:23It really is... I mean, that corridor is terrible.
0:05:23 > 0:05:27The bathroom itself needs completely refurbishing.
0:05:27 > 0:05:28Then through here...
0:05:30 > 0:05:32..you are back to the bedroom.
0:05:32 > 0:05:36Now, clearly, that is a disastrous layout.
0:05:36 > 0:05:40The expensive option to sort this out, but I reckon the desired one,
0:05:40 > 0:05:44is to change the stairs around. That would give much easier access.
0:05:44 > 0:05:48The simpler thing to do would be to try and sort out that corridor. Increase the ceiling height,
0:05:48 > 0:05:52make it wider. You've still got access to the loo for the bedrooms.
0:05:52 > 0:05:56Which is, obviously, why it was put in. But right now, it is disastrous.
0:06:01 > 0:06:03Disastrous or unusual.
0:06:03 > 0:06:07This house is confused and crying out for some care.
0:06:07 > 0:06:11But don't forget that the quirks aren't the only thing that need to be fixed.
0:06:11 > 0:06:18From top to bottom, wall to wall, this place needs a general overhaul to make it liveable.
0:06:18 > 0:06:20But for all its negatives, it's a good size.
0:06:20 > 0:06:22That guide price of £50,000 is appealing.
0:06:26 > 0:06:28I asked along the auctioneer who sold it
0:06:28 > 0:06:31to see what he thought of the place.
0:06:31 > 0:06:35I know it's a property that has been in the same occupation for many years.
0:06:35 > 0:06:38So it really wants all taking apart and starting again.
0:06:38 > 0:06:42The more you look at it, the more you realise that there is a lot of work.
0:06:42 > 0:06:45You've got to start with rising damp. You've got to start with
0:06:45 > 0:06:48timber treatment. There's water ingress. There's wiring.
0:06:48 > 0:06:50The list is almost endless.
0:06:50 > 0:06:54So, with so much work needed, what sort of renovation budget would be needed?
0:06:54 > 0:06:58If you're going to do the basics, renovate what is here,
0:06:58 > 0:07:01I think you would need to spend at least £15,000 on it.
0:07:01 > 0:07:04If you are going to extend it, I think that could easily become £25,000.
0:07:04 > 0:07:09With the house guided at £50,000, how would the investment figures stack up?
0:07:12 > 0:07:17Once renovated, on today's market obviously, I would estimate the value of this property to be about £85,000.
0:07:17 > 0:07:23If the kitchen was extended, that would probably improve to about £95,000.
0:07:23 > 0:07:30Once renovated, this would have a rental value of between £450 and £475 a calendar month.
0:07:30 > 0:07:35Well, topsy-turvy, higgledy piggeldy, basically all over the place.
0:07:35 > 0:07:38This house doesn't know whether it's coming or going.
0:07:38 > 0:07:41But for a £50,000 guide price, I reckon
0:07:41 > 0:07:44whoever can spot the potential could be in for a bit of a profit.
0:07:44 > 0:07:47Because, done up, there's money to be made on this one.
0:07:47 > 0:07:49Let's find out what happened at auction.
0:07:53 > 0:07:56Lot No 2, 16 Moore Street in Sponden.
0:07:56 > 0:07:58Where do you want to be on this?
0:07:58 > 0:08:00Start me on this one at 55.
0:08:00 > 0:08:04£55,000. Start me at £50,000, if you will?
0:08:04 > 0:08:07£50,000.
0:08:07 > 0:08:08Who's got 45?
0:08:08 > 0:08:1245 is bid. Thank you. At £45,000.
0:08:12 > 0:08:15At £45,000. 46, I'm looking for.
0:08:15 > 0:08:1746 is bid. 46.
0:08:17 > 0:08:2147. 47, 48. 48, 49.
0:08:21 > 0:08:23At £49,000.
0:08:23 > 0:08:26£50,000. At £50,000.
0:08:26 > 0:08:3351. 52 is bid. 52, 53. At 53. 54?
0:08:33 > 0:08:38At £53,000. 54, either of you quickly? At £53,000. All done with it.
0:08:38 > 0:08:40For the first time. For the second time.
0:08:40 > 0:08:43For the third and last time.
0:08:43 > 0:08:49Any higher bid anywhere? At £53,000. Sold to you, sir, at 53,000. Thank you.
0:08:49 > 0:08:52The winning bidder was Phillip.
0:08:52 > 0:08:56An IT project manager by day, father and air cadet by the evening.
0:08:56 > 0:09:00He can now add property developer to his busy schedule.
0:09:00 > 0:09:03Phillip plans to renovate and rent out this odd little house.
0:09:03 > 0:09:09I wanted to know more about that and the man who was brave enough to take on this tricky project.
0:09:09 > 0:09:10Phillip, congratulations.
0:09:10 > 0:09:12Why did you want to buy the house?
0:09:12 > 0:09:14Investment, really.
0:09:14 > 0:09:18I've got a four-year-old daughter. In a few years' time I'm going to need to pay for her
0:09:18 > 0:09:22to go to university and so on. It's for my daughter's future.
0:09:22 > 0:09:26- Wow. You are planning ahead, then. - Certainly am.- Why property?
0:09:26 > 0:09:33Over the past few months, we've seen interest rates plummet. Money in the bank's not going to do anything.
0:09:33 > 0:09:35Stock market's a little bit dicey.
0:09:35 > 0:09:39I wanted to see something tangible. That's why I chose property.
0:09:39 > 0:09:43- What does your daughter think about all this?- Actually, I bought the house on her birthday.
0:09:43 > 0:09:45Aw!
0:09:45 > 0:09:49She wasn't too impressed when she came to look around it.
0:09:49 > 0:09:54- She said it was dirty.- And it's not pink!- Exactly. Hopefully, one day, she'll appreciate it.
0:09:54 > 0:09:59I'm sure daughter Lily will be grateful once her dad has removed the fungus from the walls,
0:09:59 > 0:10:01sorted the damp,
0:10:01 > 0:10:08got rid of the lean-to disaster and basically make it a completely new house.
0:10:16 > 0:10:22While Lily played with her mum, I asked Phillip what exactly appealed to him about the property.
0:10:22 > 0:10:26Price really. It was an awesome price I got it for.
0:10:26 > 0:10:31Like I say, I think I can add value and make money out of it over the next few years.
0:10:31 > 0:10:37A lot of people were put off by the internal layout and the state it was in, weren't they?
0:10:37 > 0:10:41That doesn't scare me. The house I live in now, I've spent three years doing up.
0:10:41 > 0:10:44I know what I'm letting myself in for.
0:10:44 > 0:10:47I'll take a hands-off approach in this one and get people in to do it.
0:10:47 > 0:10:53- Talk me through what you're going to do.- I'll start off by ripping everything out, gut the place.
0:10:53 > 0:10:58Then I've got a blank canvas to work from. The outbuildings are going, basically.
0:10:58 > 0:11:04So, I want a garden there for people to have a bit more enjoyment out of the house.
0:11:04 > 0:11:07I'm going to stick to the layout upstairs...
0:11:07 > 0:11:12- What, with the corridor?- Yes. It's going to have to stay like that.
0:11:12 > 0:11:18Because if there's going to be two people sharing, then you need direct access to the bathroom.
0:11:18 > 0:11:20'Phillip does plan to widen the corridor.
0:11:20 > 0:11:26'But it's a shame because if he ever decides to sell, keeping that layout will put potential buyers off.
0:11:26 > 0:11:31'The aim is to modernise and rent the house out. To do that, he's drawn up a battle-plan.'
0:11:31 > 0:11:33Explain this. These are all the jobs.
0:11:33 > 0:11:39I've broken down the whole project into individual tasks, on a room-by-room basis.
0:11:39 > 0:11:45It's grouped according to the type of work it is - for example, plumbing, joinery, electrics.
0:11:45 > 0:11:50- And then I know which order to do them in.- Right, so this is the timescale across the top here,
0:11:50 > 0:11:51split out into months and weeks.
0:11:51 > 0:11:59No, days in fact. I mean, what, are you saying to me that on Wednesday, March 31st, or whatever it is,
0:11:59 > 0:12:05- you are going to put in new taps in the bathroom?- Exactly, yes. That's how detailed I'm working this to.
0:12:05 > 0:12:12Wow! This is the most detailed plan I've ever seen! How likely is it you will be able to stick to this?
0:12:12 > 0:12:17Very unlikely, to be fair. But it's a starting point.
0:12:17 > 0:12:22'I hope Phillip's built some flexibility into his timeline.
0:12:22 > 0:12:26'There will be problems. He has a three-month turnaround on the renovation
0:12:26 > 0:12:28'and a budget as detailed as the schedule.'
0:12:28 > 0:12:32So, you think it will cost £12,765?
0:12:32 > 0:12:34Exactly.
0:12:34 > 0:12:37Joking aside, this kind of thing is very, very useful, isn't it?
0:12:37 > 0:12:41Yes, it certainly gives something for my builder to work from.
0:12:41 > 0:12:43- Has he seen that yet?- Yes. - What did he say?
0:12:43 > 0:12:46He filed it in an appropriate place.
0:12:48 > 0:12:49Yeah.
0:12:49 > 0:12:51Exactly, yeah.
0:12:55 > 0:12:59Well, Phillip has certainly done his sums on this place.
0:12:59 > 0:13:02But has he come up with the right plan?
0:13:02 > 0:13:08Leaving those stairs there might add up financially, but does it equal the right results for this property?
0:13:08 > 0:13:12I don't know. You can find out how he gets on later in the show.
0:13:14 > 0:13:18When there's a storm breaking it's always good to have a port to escape to.
0:13:18 > 0:13:23The bustling city of Southampton seems to be weathering the current property crisis.
0:13:23 > 0:13:28While some parts of the country have seen a 29% fall in prices,
0:13:28 > 0:13:31Southampton has only suffered a 9% drop.
0:13:31 > 0:13:33Things here seem buoyant.
0:13:35 > 0:13:41The property I'm here to see is just two miles away from all that Southampton has to offer.
0:13:41 > 0:13:45It's definitely - how can I say this? - unusual.
0:13:45 > 0:13:48It's a two-bedroomed flat with off-road parking.
0:13:48 > 0:13:52It had a guide price of just £125,000. So, why unusual?
0:13:54 > 0:13:58Well, it's a flat and a detached property and it takes up the entire first floor.
0:13:58 > 0:14:00Look at all that space!
0:14:00 > 0:14:04You know, I can't wait to get in there and check this one out.
0:14:04 > 0:14:06But just look at the exterior.
0:14:06 > 0:14:12There's a beautiful well-preserved stained-glass door that creates a very good impression.
0:14:12 > 0:14:14There are large bay windows. The roof looks tired
0:14:14 > 0:14:16and the paintwork needs refreshing,
0:14:16 > 0:14:19but it's nothing to set any alarm bells ringing.
0:14:22 > 0:14:25This space here is so impressive.
0:14:25 > 0:14:29You can see the ground floor right the way up to the top here.
0:14:29 > 0:14:32Just look at this wonderful landing area.
0:14:32 > 0:14:38Now, you've got stunning cornicing up here. You've got that oversized big sash window behind me.
0:14:38 > 0:14:40Just look at these door architraves everywhere.
0:14:40 > 0:14:44Through here, this is bedroom one, and what a bedroom!
0:14:44 > 0:14:47You've got this big old bay window over here.
0:14:47 > 0:14:49It does look fabulous but it's single glazed.
0:14:49 > 0:14:52It lets the road noise in and the heat out.
0:14:52 > 0:14:55Not great for your heating bills.
0:14:55 > 0:14:59Saying that, though, I would hate to the see these replaced with uPVC.
0:14:59 > 0:15:03'These windows are an important part of the character of this property.
0:15:03 > 0:15:06'And this flat has that in abundance.
0:15:06 > 0:15:11'There's a good-sized second bedroom, a huge living room,
0:15:11 > 0:15:17'a spacious kitchen, a boxroom and at the top of the stairs, a bathroom and separate toilet.
0:15:17 > 0:15:23'There's an incredible amount of space here but if you want more...'
0:15:23 > 0:15:28Whenever I look around a property, I'm always looking for ways to add value.
0:15:28 > 0:15:30Today, I think I've found a way.
0:15:30 > 0:15:35Everything is subject to planning and securing the freeholder's permission.
0:15:35 > 0:15:39But you could go up into the loft here to create further space.
0:15:39 > 0:15:42With the square footage on this level, you could add a further two rooms,
0:15:42 > 0:15:46bringing this from a two-bed flat to a four-bed flat.
0:15:46 > 0:15:49That would definitely be the luxury option.
0:15:49 > 0:15:56A more financially-rewarding one would see someone reconfiguring this to create two separate flats.
0:15:56 > 0:15:58For that, you would need to employ an architect.
0:15:58 > 0:16:04From looking at this property today, I think there may be access issues to overcome first.
0:16:04 > 0:16:09You'd need to install some kind of side access but there's one big drawback about the flat -
0:16:09 > 0:16:10there's no garden.
0:16:10 > 0:16:13Some people might see that as a negative.
0:16:13 > 0:16:18But there is that off-road parking and this garage, handy for storage.
0:16:18 > 0:16:21I reckon there's all the space you could want up here.
0:16:21 > 0:16:24I would love to see the property stay as it is,
0:16:24 > 0:16:28with its lovely character features and big rooms.
0:16:28 > 0:16:31It needs a new kitchen and bathroom, plus central heating,
0:16:31 > 0:16:35but at a guide price of £125,000,
0:16:35 > 0:16:39I'd say this place has the potential to be a good investment.
0:16:41 > 0:16:45I asked a local estate agent to come and have a look at the flat
0:16:45 > 0:16:48and see what he thought it needed to get it up to speed.
0:16:49 > 0:16:53This flat needs a fair bit of upgrading.
0:16:53 > 0:16:58Firstly, I think there's possibly between 16 and 20 windows,
0:16:58 > 0:17:01some of which are a good size.
0:17:01 > 0:17:03It could be expensive. That's the first port of call.
0:17:03 > 0:17:07Central heating. The cheap option would be electric.
0:17:07 > 0:17:11Other than that, it'd be gas central heating. I'd check the wiring.
0:17:11 > 0:17:12New kitchen, new bathroom.
0:17:12 > 0:17:17Redec, that's the initial things that I've seen. There could be further issues.
0:17:17 > 0:17:21An extensive refurbishment could affect your budget on a place this size.
0:17:21 > 0:17:24So what about reconfiguring the layout?
0:17:24 > 0:17:30Getting access to the flat itself, obviously you'd need to hire an architect to look into this,
0:17:30 > 0:17:33ie, planning consultant, and get freeholder consent to do it.
0:17:33 > 0:17:36I think there could be problems with it, personally.
0:17:36 > 0:17:39'I agree. It's worth a try if you really want to.
0:17:39 > 0:17:43'But if someone did a simple refurbishment, how much could they make?'
0:17:43 > 0:17:49Once renovated, I'd put the property on the market at around £145,000 to £150,000.
0:17:49 > 0:17:50'And for rental?'
0:17:50 > 0:17:55A two-bedroomed flat, I'd rent this property out for £700 per calendar month.
0:17:55 > 0:17:58In the history of Homes Under The Hammer,
0:17:58 > 0:18:02that has got to go down as being one of the largest flats I've ever seen.
0:18:02 > 0:18:06And it's got the potential to make it even larger.
0:18:06 > 0:18:11There's a lot of property for the money here. I think it's a great one to bid for.
0:18:11 > 0:18:13Let's see who went for it as we go to auction.
0:18:17 > 0:18:21Lot number two is 123A Upper Shirley Avenue,
0:18:21 > 0:18:29Upper Shirley, Southampton, Hampshire. Who will start at just £110,000?
0:18:29 > 0:18:32Looking for a bid of 110,000 on 123?
0:18:32 > 0:18:36110,000 on my left. Gentleman seated.
0:18:36 > 0:18:38115 on the telephone table.
0:18:38 > 0:18:41120. 120 on my left-hand side.
0:18:41 > 0:18:46125, Peter. 125 we do have. 130, sir.
0:18:46 > 0:18:47130 is bid.
0:18:47 > 0:18:50131,000 on my right.
0:18:50 > 0:18:56No, shaking his head at me. A half, sir, do you want to come in at 131,500? No. Firm shake of the head.
0:18:56 > 0:19:00New bid, madam, 131,500.
0:19:00 > 0:19:02132, I have got.
0:19:02 > 0:19:04132,500?
0:19:04 > 0:19:06132,500. 133?
0:19:06 > 0:19:10133. Another 500? Shake of the head.
0:19:10 > 0:19:13I have 133,000, then, for the first.
0:19:13 > 0:19:16At 133,000 for the second.
0:19:16 > 0:19:20£133,000 for the third and the final time.
0:19:20 > 0:19:23Sold to your client, Peter. 133,000.
0:19:26 > 0:19:33'The actual bidder was Steve, who bagged it for £133,000, eight grand over the guide price.
0:19:33 > 0:19:37'He wasn't at the auction, as he was otherwise engaged but he came to the flat
0:19:37 > 0:19:40'with his daughters, Claire and Becks.'
0:19:40 > 0:19:45Steve, congratulations. I didn't see you at the auction. Where were you?
0:19:45 > 0:19:49I was at the races. I had a proxy bidder.
0:19:49 > 0:19:54They rang me up a couple of hours after the auction, and said, "You've got the property,"
0:19:54 > 0:19:58- so it made up for what I lost at the horses.- What did you do? "OK, thanks!"
0:19:58 > 0:20:01- and then carried on watching the horses?- Yeah.
0:20:01 > 0:20:04- It didn't interrupt your day at all? - Not at all.
0:20:04 > 0:20:09- The beauty for you of being a proxy bidder is that you didn't overspend on the day, did you?- No.
0:20:09 > 0:20:17Had I been there and it had got to my limit, I might well have gone over because I did like the property.
0:20:17 > 0:20:20This way, I had my inbuilt self-control.
0:20:20 > 0:20:23'So Steve is the cautious gambling type, then.
0:20:23 > 0:20:28'Picking it up for 133,000 meant he was definitely in the winners' enclosure that day.
0:20:28 > 0:20:31'He would've gone up to £136,500.
0:20:31 > 0:20:35'That means he saved himself £3,500.
0:20:35 > 0:20:38'I hope he didn't spend that at the races!'
0:20:46 > 0:20:50Why did you want to buy this property? What was it that appealed to you?
0:20:50 > 0:20:54It'd be a good start for my daughter if she wanted to do a flat share.
0:20:54 > 0:20:57Her mum lives down the road. I live ten minutes away.
0:20:57 > 0:21:00It's an opportunity for her if she wants to come and move in here.
0:21:00 > 0:21:04At the moment, she doesn't want to share, so I'll probably just rent it out.
0:21:04 > 0:21:08'Steve has a history of renovating properties and renting them out.
0:21:08 > 0:21:12'The main aim here is to have a pension in bricks and mortar
0:21:12 > 0:21:16'and provide financial security for his daughters.'
0:21:16 > 0:21:21- So would you call yourself a property developer?- Er, property speculator as opposed to developer.
0:21:21 > 0:21:26I like restoring properties rather than knocking them down and building flats.
0:21:26 > 0:21:28I hate big properties being destroyed.
0:21:28 > 0:21:33Go around Southampton, you've got fantastic properties that have been knocked around
0:21:33 > 0:21:36and now there's horrible flats there with no parking.
0:21:36 > 0:21:42Where this, if I restore it, will be a nice family flat or a good flat-share for somebody.
0:21:42 > 0:21:47The flat seems to have got the right owner to restore it to its former glory.
0:21:47 > 0:21:52Unfortunately, despite Steve's enthusiasm for the place, some things will have to go.
0:21:52 > 0:21:55Big decision about the windows.
0:21:55 > 0:21:59I've got a quote in at the moment to have it completely re-double glazed,
0:21:59 > 0:22:01matching what we've got here at the moment.
0:22:01 > 0:22:04With double glazing, you mean white uPVC windows?
0:22:04 > 0:22:08It will be but it will be an exact copy of what we've got here at the moment.
0:22:08 > 0:22:12- Can you see the disappointment in my face?- Well...
0:22:12 > 0:22:15I know, I hear you. You're a landlord.
0:22:15 > 0:22:18You need to think about saving a few pennies here and there.
0:22:18 > 0:22:22It does look traditional with the original sash windows in, doesn't it?
0:22:22 > 0:22:26If you put tenants in here, they've got to pay for the heating, not me.
0:22:26 > 0:22:30If it's double glazed, then it will be cheaper for them long-term.
0:22:30 > 0:22:37'Sad, but true. On that subject, Steve wants to install gas central heating plus a bigger addition.
0:22:37 > 0:22:42'A third bedroom with an en-suite in the loft. What budget does he have?'
0:22:42 > 0:22:49If I don't double-glaze it and don't do too much to the ceilings, then around £15,000.
0:22:49 > 0:22:51If I mess with the ceilings and reinforce the joists,
0:22:51 > 0:22:55then the budget will go up to between £25,000 and £30,000.
0:22:55 > 0:23:02'Whatever renovation Steve decides on will affect the turnaround, which ranges from eight to 15 weeks.
0:23:02 > 0:23:06'He'll project manage, supervising those who worked for him before.
0:23:06 > 0:23:11'But that won't fill his day, so what else does he do when he's not at the races?'
0:23:11 > 0:23:17My main job is an independent financial advisor, so pensions and investments. Also I'm a landlord.
0:23:17 > 0:23:24Eight years ago, I started skydiving so nearly every weekend of the year,
0:23:24 > 0:23:28I work at a skydive centre, filming people when they jump out of aeroplanes.
0:23:28 > 0:23:32You crazy guy! What was it about skydiving you loved so much?
0:23:32 > 0:23:35Absolutely petrified at the start.
0:23:35 > 0:23:40Found it very, very difficult when I started skydiving.
0:23:40 > 0:23:43I was 37 when I started.
0:23:43 > 0:23:49But persevered and now I just love it. It gets rid of all my energies at weekends.
0:23:49 > 0:23:53That must be the most incredible feeling.
0:23:53 > 0:23:56The adrenaline rush must be like nothing else.
0:23:56 > 0:23:57The adrenaline rush is awesome.
0:23:57 > 0:24:00'It's not just Steve who enjoys it.
0:24:00 > 0:24:02'Both his daughters do too.
0:24:02 > 0:24:07'16-year-old Claire is the youngest person in the UK to complete an incredible 50 jumps so far.
0:24:16 > 0:24:21'But getting her into this flat without an en-suite might be an even bigger challenge.'
0:24:21 > 0:24:26I'd like to think that she will like the property when I finish doing the work
0:24:26 > 0:24:30and that she will reconsider and say, "Dad, yes, I will do a flat-share."
0:24:30 > 0:24:36That was one of the special reasons I bought this property because it's very close to me and her mum.
0:24:36 > 0:24:38So, we'll see when I finish it what she says.
0:24:38 > 0:24:43- Steve, it's an exciting time for you. Well done.- Thank you very much indeed.
0:24:46 > 0:24:53Steve is a real daredevil but is he daring enough to take on his daughter and refuse her an en-suite?
0:24:53 > 0:24:58She may decide not to move in, of course. Will she or won't she?
0:24:58 > 0:25:02Will Steve get all this work done in just eight weeks?
0:25:02 > 0:25:04You can find out later in the programme.
0:25:05 > 0:25:07Coming up, there's a way to gain precious space
0:25:07 > 0:25:11in this two-bedroomed flat in Harlesden, North West London.
0:25:11 > 0:25:14Increase the size of this room quite dramatically.
0:25:15 > 0:25:20In Southampton, did Steve make his restoration too personal?
0:25:20 > 0:25:26As I started doing the work, I thought it's too nice a property just to dress up.
0:25:27 > 0:25:34But first in Derby, did Phillip get his renovation done on the hour, every hour?
0:25:37 > 0:25:41'Earlier we met Phillip, an IT project manager,
0:25:41 > 0:25:48'who bought this two-bedroomed end-of-terrace in Sponden near Derby for £53,000.
0:25:48 > 0:25:52'It was to be a long-term investment for his daughter's education.
0:25:52 > 0:25:59'She's only four now but in order to be prepared, he'd already mapped out a very detailed schedule.'
0:25:59 > 0:26:04So, I mean, you're saying that on Wednesday March 31st, or whatever it is,
0:26:04 > 0:26:06you're going to put in new taps in the bathroom?
0:26:06 > 0:26:11Exactly, yes. That's how detailed I'm working this to.
0:26:11 > 0:26:15'Well, that was five months ago.
0:26:15 > 0:26:18'So, let's see if those taps went in on that date
0:26:18 > 0:26:23'or if daughter Lily's university fund is still awaiting its first payment.
0:26:25 > 0:26:28'Well, it seems the house is still being renovated.
0:26:28 > 0:26:32'But you can already see where it's heading.
0:26:32 > 0:26:36'Exposing that period fireplace adds character to the room.
0:26:36 > 0:26:42'But I'm keen to see what Phillip has done to that other feature, the narrow corridor upstairs.'
0:26:42 > 0:26:45I'm stood where the ugly corridor was last time you were here.
0:26:45 > 0:26:49As you can see, that's now gone, which makes this room a lot bigger,
0:26:49 > 0:26:52and leads through to what is now an en-suite bathroom.
0:26:52 > 0:26:57That layout works particularly well with the shower room downstairs for the other bedroom.
0:26:57 > 0:27:00'The original plan was to widen the corridor,
0:27:00 > 0:27:03'but losing it completely has done this room the world of good.
0:27:03 > 0:27:10'Unfortunately, that doesn't help the front bedroom, which now has no easy access to a loo.
0:27:10 > 0:27:16'That's downstairs in the old kitchen and will definitely put potential buyers off.
0:27:16 > 0:27:18'So, where is the kitchen now?'
0:27:18 > 0:27:22Remember last time you were here that was the kitchen?
0:27:22 > 0:27:24Obviously it was a bit on the small side.
0:27:24 > 0:27:29So I've turned the dining room into a kitchen-diner, which is far better.
0:27:29 > 0:27:32It's a lot bigger room. Better use of space.
0:27:32 > 0:27:34I'm very happy with the result.
0:27:34 > 0:27:39'I reckon Phillip's done the right thing, making the kitchen area far more appealing.
0:27:39 > 0:27:41'But that's not the only big change down here.'
0:27:41 > 0:27:47I did want to keep the outbuildings. But when I looked into it further, they were in a very bad state.
0:27:47 > 0:27:50You just had to push the walls and it would fall over.
0:27:50 > 0:27:53The easiest thing was to completely get rid of them.
0:27:53 > 0:27:57That's made the garden bigger and it would be ideal for someone living here.
0:28:01 > 0:28:06'Not only does it look much better, it's also the perfect place for summer barbecues.
0:28:06 > 0:28:09'But the whole renovation is still in progress.
0:28:09 > 0:28:13'You get the feeling Phillip's detailed timetable has got slightly derailed.'
0:28:13 > 0:28:17My project plan was blown out of the water by week two,
0:28:17 > 0:28:21when the house was stripped back and we could see what the bigger issues were.
0:28:21 > 0:28:25For example, the outbuildings needed to be completely demolished.
0:28:25 > 0:28:29Also the whole house needed to be replastered.
0:28:29 > 0:28:31That added more time and cost.
0:28:31 > 0:28:35The key to a good project is keeping your plans flexible, which is what I did.
0:28:35 > 0:28:37The end result I'm very happy with.
0:28:37 > 0:28:41'This is Phillip's first investment project.
0:28:41 > 0:28:45'It's good to see that the setbacks aren't affecting his practical approach.
0:28:45 > 0:28:48'What I need to know is, did those taps go in when planned?'
0:28:48 > 0:28:54The bathroom taps didn't make it on time because I got a completely new bathroom suite.
0:28:54 > 0:28:58So Martin, I'm afraid, I missed that target!
0:28:58 > 0:29:01'Phillip's schedule may have bitten the dust quicker than anticipated
0:29:01 > 0:29:04'but did he at least get his sums right?'
0:29:04 > 0:29:09I worked out I'd be spending £12,760.
0:29:09 > 0:29:13However, the extra work that I've had to do has pushed that up a bit,
0:29:13 > 0:29:18so I'll be spending £15,000 by the time it's finished, which I'm still happy with.
0:29:19 > 0:29:22The house cost £53,000,
0:29:22 > 0:29:27so that would push Phillip's spend this far to £68,000.
0:29:27 > 0:29:32Time to ask two local estate agents if they think he's given the house a new lease of life.
0:29:32 > 0:29:35When you come into the place again, you see a lot of hard work.
0:29:35 > 0:29:40It's a transformation. Everything that was wrong about it has been put right.
0:29:40 > 0:29:42Particularly, the lean-to area at the back.
0:29:42 > 0:29:48That's been cleared. We've had some changes upstairs, apart from refitting the whole house.
0:29:48 > 0:29:51I think the property's been done quite tastefully in general.
0:29:51 > 0:29:56The things that I really like, the first one is the kitchen floor, which might sound strange.
0:29:56 > 0:30:01You don't normally see a stone-flagged floor in a property like this. I think it's fantastic.
0:30:01 > 0:30:04The other thing is that you've got parking at the back off a quiet
0:30:04 > 0:30:07service road, which kind of makes up for the busy road at the front.
0:30:07 > 0:30:09Positive feedback, there.
0:30:09 > 0:30:14But has the decision to close the corridor upstairs enhanced the property's appeal?
0:30:14 > 0:30:20I'm slightly surprised that's been taken out altogether because while we've got a shower room downstairs,
0:30:20 > 0:30:25it means effectively the rear bedroom's got its own en-suite bathroom. That's good.
0:30:25 > 0:30:30But your front bedroom relies on the facility downstairs and that may not be quite so user-friendly.
0:30:30 > 0:30:37Remember, Phillip's spend so far is 68 grand, so what could he achieve on a resale?
0:30:37 > 0:30:40I would put this property on the market
0:30:40 > 0:30:45at an asking price of around £87,950, in the hope and expectation that you might achieve about 85.
0:30:45 > 0:30:51If I was to put this property on the market, I would begin marketing at £99,950.
0:30:51 > 0:30:56I would expect to achieve an offer of about around 90 to £95,000.
0:30:56 > 0:31:03£95,000 would still give a profit of some £30,000 if I choose to sell the house, so I'm happy with that.
0:31:03 > 0:31:10But he has always intended this to be a long-term investment, so what can he expect in rental?
0:31:10 > 0:31:14This would rent out very readily indeed and I would guess
0:31:14 > 0:31:17you'd get between 475 and £500 a calendar month for it.
0:31:17 > 0:31:20With a property like this I would expect to achieve
0:31:20 > 0:31:24at least £400 per calendar month. Maybe a little bit more. 425.
0:31:24 > 0:31:26Yeah, I'm very happy with those figures.
0:31:26 > 0:31:34I based all my calculations on a rental of £400 per calendar month so anything extra than that's a bonus.
0:31:34 > 0:31:39Hopefully, those figures won't develop the hiccups his schedule and budget did.
0:31:39 > 0:31:44But is the plan to get another property and start on a new detailed timeline?
0:31:44 > 0:31:49I've been extremely busy at work over the past three months, as well as having this on,
0:31:49 > 0:31:54so it's time for a holiday before I weigh up my options about doing it again.
0:31:57 > 0:32:02I'm in northwest London between fashionable Kensal Rise
0:32:02 > 0:32:06and busy Harrow Road in an area known as Harlesden. Confused?
0:32:06 > 0:32:10I'm under a mile from Willesden junction with its tube station
0:32:10 > 0:32:14and this is Wrottesley Road, where the property is situated.
0:32:14 > 0:32:20It's quite busy. Now, when it comes to buying properties in London, transport links are very important.
0:32:20 > 0:32:23But this could be taking it a bit too far.
0:32:23 > 0:32:26Bus stop. Property.
0:32:26 > 0:32:29Yeah. Very convenient after a night out
0:32:29 > 0:32:33but I'm not so sure it's a good thing and it would certainly put some people off.
0:32:33 > 0:32:40But what we've got here is a two-bedroom ground-floor flat at a guide price of 170,000 quid.
0:32:40 > 0:32:44Not quite as noisy as having a train line at the end of your garden
0:32:44 > 0:32:47but it's not everyone's idea of kerb appeal.
0:32:47 > 0:32:50Still, you can't argue with the convenience.
0:32:50 > 0:32:54And, better still, from the outside, the property looks in fairly good condition.
0:32:54 > 0:32:56That bodes well.
0:32:56 > 0:33:02That hall in very nice condition so probably the structure of the building has been well maintained.
0:33:02 > 0:33:07Flat itself, in through the door, you've got bedroom down there and another bedroom there. A good size.
0:33:07 > 0:33:12I'm interested in the layout of flats and how you make the most of it, and I think this one
0:33:12 > 0:33:15is doing a really nice job. Through to the kitchen.
0:33:15 > 0:33:21It's not huge but this is only a two-bedroom flat. I think it's perfectly serviceable
0:33:21 > 0:33:24and if you were renting this out, leave it as it is.
0:33:24 > 0:33:29Down this little extra corridor, fairly sensible, you've got the loo,
0:33:29 > 0:33:33bathroom there and then through into a really lovely lounge.
0:33:33 > 0:33:36I mean, look at the size.
0:33:36 > 0:33:39High ceilings, well, reasonably high ceilings.
0:33:39 > 0:33:43Big bay window here. Double-glazing so you don't get too much road noise
0:33:43 > 0:33:49and all in all, I mean, for a flat like this, this is a really nice space. Love it.
0:33:49 > 0:33:54It feels like a big flat, possibly bigger than you might expect from a London two-bed,
0:33:54 > 0:33:57where so often the second bedroom is a little more than a large closet.
0:33:57 > 0:34:00But here it's actually a really good size
0:34:00 > 0:34:05and while the general condition is tidy if a bit outdated, it would only take
0:34:05 > 0:34:09some small changes to make a considerable difference.
0:34:09 > 0:34:14So down the corridor to the main bedroom and some interesting opportunities spring to mind.
0:34:14 > 0:34:18There's a cupboard in the corridor which serves no useful purpose
0:34:18 > 0:34:20other than putting rubbish in.
0:34:20 > 0:34:24But link it up with the fact that in the bedroom here there is this a massive wardrobe -
0:34:24 > 0:34:28so massive you could almost call it a walk-in wardrobe.
0:34:28 > 0:34:30Yep, look at this.
0:34:30 > 0:34:33This is a stud-partition wall. This is a stud-partition wall.
0:34:33 > 0:34:37Take those out, you'd increase the size of this room quite dramatically.
0:34:37 > 0:34:41Yes, you've lost a bit of wardrobe space but get a stand-alone wardrobe. Fantastic.
0:34:41 > 0:34:46Where the window is, you could put in French doors leading out to the garden.
0:34:46 > 0:34:50Then this bedroom would really have a definite wow factor.
0:34:50 > 0:34:53But what doesn't wow me is that the purchaser
0:34:53 > 0:34:58will have to pay an additional fee of 2% of the amount paid for the property.
0:34:58 > 0:35:06It's to cover the seller's costs but with a guide price of 170,000, that could be just under £4,000.
0:35:06 > 0:35:09That could sink the plans of anyone on a tight budget.
0:35:09 > 0:35:12So, is there any way to add value here?
0:35:12 > 0:35:18Well, with flats like this, especially in London, you're always looking at opportunities to extend.
0:35:18 > 0:35:20So that's the kitchen there. Could we do something?
0:35:20 > 0:35:23Well, maybe put a little bit of a conservatory on there or something,
0:35:23 > 0:35:28although you would block light and ventilation into that bedroom, so I don't think that's ideal.
0:35:28 > 0:35:34You've got this six-foot-wide gap at the side of the property and you sort of think,
0:35:34 > 0:35:39"Should I be using that?" Actually, you know what, in this instance, I'd leave it pretty much as it is.
0:35:39 > 0:35:45There's a good-sized garden. This gives the whole flat a kind of open feel and I really like it for that.
0:35:45 > 0:35:49The generous space in the flat creates a sense of room to breathe.
0:35:49 > 0:35:55In the city, where people and buildings are squeezed into every corner, that's a great asset.
0:35:55 > 0:35:58Apart from some cosmetic improvements, like whipping off
0:35:58 > 0:36:02woodchip wallpaper and fitting a new kitchen, there's not a lot to do.
0:36:02 > 0:36:05So a good property with great potential.
0:36:05 > 0:36:10At a guide price of 170,000, it's time to ask a local estate agent
0:36:10 > 0:36:14what he thinks of this spacious two-bed in Harlesden.
0:36:14 > 0:36:17First impression of the flat actually, it's quite well proportioned
0:36:17 > 0:36:22for a flat in this area. It is in surprisingly quite reasonable condition as well.
0:36:22 > 0:36:25It's got... The kitchen's quite good.
0:36:25 > 0:36:28It's got good central heating and benefits from double-glazing.
0:36:28 > 0:36:35With all those plus points and that guide price of 170 grand, could this flat be a money-maker?
0:36:35 > 0:36:40When it's spruced-up or refurbished, depending on
0:36:40 > 0:36:42what sort of spec you go for,
0:36:42 > 0:36:47I would suggest you could be looking 285,000 to £290,000.
0:36:47 > 0:36:50What would be the rental return?
0:36:50 > 0:36:54You should be able to achieve in the rental market somewhere in the region of £1,200 a month.
0:36:56 > 0:36:58So let's add it up.
0:36:58 > 0:37:02The place is kind of tired but structurally sound.
0:37:02 > 0:37:06You have got to factor in that 2% buyer's fee that you're going to have to pay
0:37:06 > 0:37:09and, of course, the market is a bit sticky at the moment.
0:37:09 > 0:37:14But I reckon it still makes sense. Let's find out who did their sums and went for it at the auction.
0:37:17 > 0:37:21Lot 94. Looking for 180. £180,000.
0:37:21 > 0:37:23What about 150?
0:37:23 > 0:37:25Give it a bit of a start.
0:37:25 > 0:37:27150, I've got.
0:37:27 > 0:37:31Anybody else? Got £150,000.
0:37:31 > 0:37:34How much? 155? Yeah, 155.
0:37:34 > 0:37:39160. 165. 170. 175.
0:37:39 > 0:37:44180. 185. 190?
0:37:44 > 0:37:45186?
0:37:45 > 0:37:46Give you a hand?
0:37:46 > 0:37:48OK, 186.
0:37:48 > 0:37:53187? 187. 188? No?
0:37:53 > 0:37:59If not, to the gentleman in the middle on my left. It's £187,000.
0:37:59 > 0:38:03188, new place. 189, sir?
0:38:03 > 0:38:06190 at the back. 191?
0:38:06 > 0:38:10Cheap under 200. 191. 192.
0:38:10 > 0:38:15193. 194. 195.
0:38:15 > 0:38:21196. 197. 198. 199.
0:38:21 > 0:38:23200,000 at the back. 201.
0:38:23 > 0:38:30202. 203. 204. 205. 206.
0:38:30 > 0:38:35207? 207. 208.
0:38:35 > 0:38:39209. 210. 211.
0:38:39 > 0:38:44212. 213? No?
0:38:44 > 0:38:46One more? OK, leave you to it.
0:38:46 > 0:38:53Bid's at the back of the room on my right from the lady who bids at £212,000 against you on my left.
0:38:53 > 0:38:55212 for the first.
0:38:55 > 0:39:02212 for the second. 213? Back in. Nearly. 214?
0:39:02 > 0:39:07214. 215? 215?
0:39:07 > 0:39:10There, there, don't worry. 215.
0:39:10 > 0:39:15216, 217. No? Go through it again.
0:39:15 > 0:39:16The lady at the back.
0:39:16 > 0:39:21216 for the first. 216 for the second.
0:39:21 > 0:39:22216 for the third and final time.
0:39:22 > 0:39:25We're all done. Sold, 216. Well bought.
0:39:29 > 0:39:32Wow. The winner of that fight was Suzanne.
0:39:32 > 0:39:35She bought her last three flats at auction,
0:39:35 > 0:39:39so was prepared for the fast and furious pace on the day.
0:39:39 > 0:39:43- Suzanne, good to meet you.- Nice to meet you.- Congratulations. That was a battle!- It was.
0:39:43 > 0:39:46It was indeed, yeah. I competition hard.
0:39:46 > 0:39:50- Now, you were obviously very keen to get the property.- I was, yes.- Why?
0:39:50 > 0:39:55I wanted a property near to my sister.
0:39:55 > 0:39:58She lives in Kensal Rise and it's the nearest I found.
0:39:58 > 0:40:01That is why I had my eye on this property.
0:40:01 > 0:40:04- It went quite a lot over its guide price?- Yes, it did.
0:40:04 > 0:40:12But I was very keen to get it and I was prepared to pay a little over the odds, because it was for me.
0:40:12 > 0:40:17- Had I been doing this as an investment, I wouldn't have paid that much.- Had you set yourself a budget?
0:40:17 > 0:40:22- My budget was 215, absolute tops. - Right.
0:40:22 > 0:40:24But I did go over it. MARTIN CHUCKLES
0:40:24 > 0:40:28- So, the absolutely tops bit...? - I was expecting it to be a lot less.
0:40:28 > 0:40:34But my absolute tops was 215 and he bid once more and I said, "Just one more time!"
0:40:34 > 0:40:38- Are you glad, at the end of the day, that you paid that bit extra? - Yeah, I am.
0:40:38 > 0:40:40Suzanne feels she got the house at a good price,
0:40:40 > 0:40:45but then realised she was going to have to part with more money.
0:40:45 > 0:40:50There was this thing of paying the seller's fees at the auction. What did you feel about that?
0:40:50 > 0:40:54- I didn't know about it until after the auction.- You didn't?- No.
0:40:54 > 0:40:57- I know that was a bit naive of me.- That cost you how much?
0:40:57 > 0:40:59About £4,000.
0:40:59 > 0:41:02- That you weren't expecting? - That I wasn't expecting.
0:41:02 > 0:41:05- Ouch.- Yes, it was an ouch. But maybe it's a good thing.
0:41:05 > 0:41:09Maybe I wouldn't have gone as far as I did had I have known about it.
0:41:09 > 0:41:11Probably wouldn't have, actually.
0:41:11 > 0:41:18The seller's fee information was in the legal pack, but it often catches buyers out. So always beware.
0:41:18 > 0:41:26For Suzanne, that means her absolutely top price of 215,000 had increased to £220,000.
0:41:26 > 0:41:31But because there's so little work needed, she hopes to get it refurbished
0:41:31 > 0:41:34for three to four grand and in three weeks.
0:41:34 > 0:41:38Tell me more about you. What do you do when you're not buying houses at auction?
0:41:38 > 0:41:44I'm a social worker and foster carer. Hopefully, with a spare room, I'll be able to take another child in.
0:41:44 > 0:41:49- One at a time, or sometimes more than that?- No, I'll be doing one at a time.
0:41:49 > 0:41:52I have done more than that, but it's very hard for a single person.
0:41:52 > 0:41:55Suzanne has looked after ten children,
0:41:55 > 0:41:58so she's obviously a determined woman, not to be put off
0:41:58 > 0:42:01by a small challenge like renovating this flat.
0:42:01 > 0:42:06She's considering adding an extension to the kitchen and moving the bedroom window.
0:42:06 > 0:42:08It would make the flat a lot bigger
0:42:08 > 0:42:14and I think it would improve on its value, as well. If I do want to move on, I wouldn't lose.
0:42:14 > 0:42:17If you don't do an extension, what plans do you have for doing it up?
0:42:17 > 0:42:21Keep it contemporary. Cosy contemporary, that is what I call it.
0:42:21 > 0:42:25- Cosy contemporary? I like that. - Yeah.
0:42:25 > 0:42:31- And in the main bedroom I would take out all those cupboards and make the room a lot larger.- That's great.
0:42:31 > 0:42:35- I thought about that.- And put probably a cupboard in the alcove and dresser on the side.
0:42:35 > 0:42:41It would give a feeling of much more space, instead of having those ugly cupboards there.
0:42:41 > 0:42:47- Apart from that I think it is mainly cosmetic, all the work here. So, that's it.- Congratulations.
0:42:47 > 0:42:50- Good luck with it and the foster care.- Thank you.
0:42:50 > 0:42:53- And we look forward to seeing how you get on.- Thank you.
0:42:53 > 0:42:57Well, despite going over her budget and those unexpected charges,
0:42:57 > 0:43:01I think Suzanne has still got a great flat here.
0:43:01 > 0:43:07Not so sure about the extension, but it is a different equation when it's a property you're buying to live in.
0:43:07 > 0:43:09That damp, hopefully not too much of problem either.
0:43:09 > 0:43:12You can find out how she gets on later in the show.
0:43:15 > 0:43:19Time and tide wait for no man and we can't wait a moment longer.
0:43:19 > 0:43:22We've given our developers plenty of time.
0:43:22 > 0:43:24But have they achieved what they wanted?
0:43:24 > 0:43:25Let's go back and find out.
0:43:25 > 0:43:32Earlier we were in Southampton, where we met sky-diving property speculator Steve.
0:43:32 > 0:43:37He'd bought this fabulous two-bed flat for £133,000.
0:43:38 > 0:43:42He was planning a modest makeover, but the flat had amazing potential.
0:43:42 > 0:43:48I could see the adrenaline rush of freefalling might be replaced by the thrill of a great renovation.
0:43:51 > 0:43:59Five months on, and from the outside a big skip and building equipment shows there are still men at work.
0:43:59 > 0:44:02But step inside...
0:44:03 > 0:44:08and there's one amazing transformation in progress.
0:44:09 > 0:44:13This formerly tired living room is now a wonderful combination
0:44:13 > 0:44:20of clean contemporary lines and the period details that Steve was so keen to retain.
0:44:20 > 0:44:26Originally I was going to come in, clean it up, paint and decorate, kitchen, bathroom and leave.
0:44:26 > 0:44:30But as I started doing the work, I thought it was too nice a property just to dress up.
0:44:30 > 0:44:33So I thought I'd restore it.
0:44:33 > 0:44:36This has turned from a renovation to a restoration.
0:44:36 > 0:44:39The style of the living room continues
0:44:39 > 0:44:43into the two bedrooms and both still retain their wonderful spacious splendour.
0:44:43 > 0:44:50But it doesn't mean Steve has been completely faithful to the original design. Because, up above...
0:44:50 > 0:44:54When I bought the flat, I realised we had such large attic space
0:44:54 > 0:44:57it was trying to find a way of getting a staircase into the attic
0:44:57 > 0:45:00to maximise the space.
0:45:00 > 0:45:04So we lost a room downstairs, which was only about 49 square feet, seven by seven.
0:45:04 > 0:45:08And we've gained a space up here of around 450 square feet,
0:45:08 > 0:45:12giving us an advantage to put a landing in, our own separate boiler room.
0:45:12 > 0:45:15And this room's going to be quite spectacular
0:45:15 > 0:45:19with an en suite, picture windows and a big dormer window behind me.
0:45:19 > 0:45:21And that's the next project over the next two months.
0:45:21 > 0:45:29It's a fantastic idea, with this loft intended to be the massive master bedroom, bathed in light.
0:45:29 > 0:45:36Ironically, this huge room has been created by losing the smallest room downstairs and it wasn't easy.
0:45:36 > 0:45:39One of the most pleasing parts of the job was the hallway.
0:45:39 > 0:45:43We had a lot of difficulties with the staircase,
0:45:43 > 0:45:49especially the cappings because the original wood we were using was a soft pine and it was splitting.
0:45:49 > 0:45:52So we had to have them remade in a slightly harder wood.
0:45:52 > 0:45:59Why I'm so pleased about it, it looks like it's been here all the time and not just an addition by me.
0:45:59 > 0:46:04And that, with the coving all being replaced, exact copy of the original stuff,
0:46:04 > 0:46:07then it just makes it a very grand hallway.
0:46:07 > 0:46:11And I think it's the nicest part of the house, really.
0:46:11 > 0:46:15That sense of style continues at the other end of hallway.
0:46:15 > 0:46:19A new WC and bathroom suite has been installed,
0:46:19 > 0:46:22again retaining the look of the flat but with a modern twist.
0:46:22 > 0:46:25# Looks, looks, looks You had sense
0:46:25 > 0:46:27# You had style You had cash galore
0:46:27 > 0:46:28# Looks, looks, looks. #
0:46:28 > 0:46:34Everything about this place is pleasing to the eye, but that doesn't come cheap.
0:46:36 > 0:46:40Replacing all the ceiling joists from four-by-twos to nine-by-twos, timber's not cheap.
0:46:40 > 0:46:46That was a very expensive thing. Because we'd applied for planning permission to make an attic room
0:46:46 > 0:46:50then it had to be done with fire boarding, acoustic boarding.
0:46:50 > 0:46:55And, once we'd done that, we had these lovely freshly plastered ceilings. It was then the decision
0:46:55 > 0:46:56to replace all the cornice.
0:46:56 > 0:46:59Just the cornice alone was over £3,000
0:46:59 > 0:47:02but it's made that bit of difference to the property.
0:47:02 > 0:47:07When you walk in through the hallway, I think it looks spectacular and original.
0:47:07 > 0:47:12Let's not forget the usual suspects on a developer's list - new central heating,
0:47:12 > 0:47:17rewiring, flooring, replastering and those new windows.
0:47:17 > 0:47:21Steve's obviously a bit of a perfectionist and something told me
0:47:21 > 0:47:25that original budget was never going to cut the mustard.
0:47:25 > 0:47:29My original come in here, paint and decorate it,
0:47:29 > 0:47:35and a quick job of £15,000, I think has ended up more like £65,000-£70,000.
0:47:35 > 0:47:38Steve bought the flat for £133,000.
0:47:38 > 0:47:43So that big restoration has put his current outlay to £203,000.
0:47:43 > 0:47:47But this financial advisor has not lost sight of the bottom line.
0:47:47 > 0:47:50I would like to do a little bit more here.
0:47:50 > 0:47:56And when I do the attic room, then I'll decide if I'm going to put an en suite and stuff like that in there.
0:47:56 > 0:47:59But I've got to be very careful that I don't price it out of its market area.
0:47:59 > 0:48:01There's no point me spending all this time
0:48:01 > 0:48:06working on it and then walking away with only having paid the builders and materials and nothing for me.
0:48:06 > 0:48:11It looks like Steve will be the first resident to enjoy his hard work, as daughter Claire
0:48:11 > 0:48:14has changed her plans about moving in.
0:48:14 > 0:48:17'My eldest daughter was thinking of moving in here,
0:48:17 > 0:48:21'but that was on the basis of that it was a flat share, because it's such a big property.
0:48:21 > 0:48:23'But she's moved into one of my other flats now.
0:48:23 > 0:48:26'So as an interim one, while I'm doing up my house,
0:48:26 > 0:48:28'I'll move in here, finish my other property'
0:48:28 > 0:48:33and then see how the market goes. I'll make a decision then whether to rent it out or sell it.
0:48:36 > 0:48:39To find out what Steve could achieve on his investment,
0:48:39 > 0:48:43we invited two local estate agents to give a verdict on his efforts.
0:48:45 > 0:48:49The property's gone through a complete transformation.
0:48:49 > 0:48:52Previously, it was a good-sized property.
0:48:52 > 0:48:55Obviously it's actually got bigger.
0:48:55 > 0:49:00What the current owner has done is accentuated it, put loads of character into it.
0:49:00 > 0:49:01He's done a very good job.
0:49:01 > 0:49:04This property definitely has the wow factor.
0:49:04 > 0:49:09The overall standard of finish is absolutely fantastic. The main things I like about this property
0:49:09 > 0:49:12is the overall finish, but also the way in which
0:49:12 > 0:49:14the actual the owner has kept some original features.
0:49:14 > 0:49:20The coved ceilings, the natural fireplaces which are here and also the solid wood flooring as well
0:49:20 > 0:49:25just gives an overall good finish. The only negatives I would say is a property of this size
0:49:25 > 0:49:29would want to have a garden. And obviously that will be a downfall.
0:49:29 > 0:49:33Let's face it, with all that space inside, maybe the lack of garden might not be an issue.
0:49:33 > 0:49:36But did Steve get his sums right?
0:49:36 > 0:49:40Remember, he spent £203,000 on this flat so far.
0:49:40 > 0:49:43So, what could he get if he sold it?
0:49:43 > 0:49:46I would value this property at 174,995.
0:49:46 > 0:49:51Current price for the property, as it is, probably looking around 170.
0:49:51 > 0:49:57Once you bring into play a three-bedroomed apartment, you could advertise it around 200.
0:49:57 > 0:50:02If he was to extend upstairs, I would value this property around 209,995.
0:50:02 > 0:50:08I've already had it valued by a professional chartered surveyor for the bank.
0:50:08 > 0:50:10In the condition it was,
0:50:10 > 0:50:16worse than this, a few weeks ago, without the floors even being done, it was valued at 210
0:50:16 > 0:50:21with an estimate of around 245 finished. And I think that's much more realistic.
0:50:21 > 0:50:23I hope that Steve's right.
0:50:23 > 0:50:26But what he's achieved here has all the makings of a modern home,
0:50:26 > 0:50:30yet with the character features of a period property.
0:50:33 > 0:50:39With Steve's obvious passion for old buildings, is he planning to drop in on more auctions?
0:50:39 > 0:50:42I'd rather be sky diving than going to an action.
0:50:42 > 0:50:46But, at the end of the day, I've got to be able to pay for my hobby and if I can do it
0:50:46 > 0:50:51by buying properties and selling them, and it keeps me sky diving, then that's the way it will be.
0:50:55 > 0:50:58Seasoned auction buyer Suzanne, a social worker,
0:50:58 > 0:51:05bought this two-bedroomed ground floor flat in Harlesden, northwest London, for £216,000.
0:51:05 > 0:51:11The property was in great condition and just needed to be brought up to scratch.
0:51:11 > 0:51:15Since this was to be Suzanne's home, she was going to give it the personal touch.
0:51:15 > 0:51:17Keep it contemporary.
0:51:17 > 0:51:20- Cosy contemporary, that's what I call it.- Cosy contemporary?
0:51:20 > 0:51:24I like that. Well, it's been four months since the auction.
0:51:24 > 0:51:27So time to see what Suzanne has achieved.
0:51:29 > 0:51:34That dowdy, tired living room has now been given a new lease of life.
0:51:34 > 0:51:39New flooring and fresh decoration now makes this a relaxing lounge.
0:51:41 > 0:51:47And it seems that Suzanne's trying to forget the way the old flat was.
0:51:47 > 0:51:52Well, I can't really remember how it looked before because it's been like this for while now.
0:51:52 > 0:51:57But I do remember it looking dull, having a bright red carpet on the floor which I didn't like.
0:51:57 > 0:52:01That went straightaway. And I think that was it, basically.
0:52:01 > 0:52:03This room was more or less OK.
0:52:03 > 0:52:06The other rooms had a lot more work to do in them.
0:52:09 > 0:52:14Well, this is the major change in the flat that I carried out, taking out
0:52:14 > 0:52:17a big cupboard that took up practically half the room.
0:52:17 > 0:52:20Well, it was at least a metre in width.
0:52:20 > 0:52:24And we've removed that, we've put the cupboard over here,
0:52:24 > 0:52:27we've moved the door back and given the bedroom a much bigger space.
0:52:27 > 0:52:30And that's what I intended to do, give more space.
0:52:30 > 0:52:34The place may appear as though it's undergone a radical transformation
0:52:34 > 0:52:36but things aren't that different.
0:52:36 > 0:52:43In the kitchen, the cupboards are the same - only the worktop and the flooring have been changed.
0:52:43 > 0:52:46And it's the same story in the bathroom.
0:52:46 > 0:52:48Just a new toilet and floor.
0:52:50 > 0:52:53The second bedroom has also had the simplest of makeovers,
0:52:53 > 0:52:58but it's the individual touch that gives this flat character.
0:52:58 > 0:53:03Well, cosy contemporary means homely, modern. It's slightly modern.
0:53:03 > 0:53:06I like some old bits as well because I've bought a few pieces here.
0:53:06 > 0:53:08I like to mix a bit of old with new.
0:53:08 > 0:53:14But I think, all in all, it's is a very comfy, cosy place. Well, I like it, anyway.
0:53:14 > 0:53:20With such a simple renovation, Suzanne kept within her budget and spent three grand.
0:53:20 > 0:53:25Added to £216,000 cost of the flat, plus a seller's fee of four grand,
0:53:25 > 0:53:29that makes a total of around £223,000.
0:53:29 > 0:53:33With the help of her workmen, she did the makeover in one-and-a-half weeks.
0:53:33 > 0:53:38- so, job well done. Well, not quite. - Well, here we are.
0:53:38 > 0:53:43This is the last part of the changes that I'm going to make here.
0:53:43 > 0:53:47We were supposed to do the turfing last Saturday, but we didn't make it.
0:53:47 > 0:53:52My sister had another job and she couldn't help me. So you can't rely on family, can you?
0:53:52 > 0:53:57What I am going to do here is I'm going to be putting tiles down the whole length of this
0:53:57 > 0:54:01and this side here, to spruce it up a bit and re-turf it.
0:54:01 > 0:54:05So that should make it look a lot bigger and nicer, more pleasant
0:54:05 > 0:54:08cos this stone is not very nice.
0:54:08 > 0:54:14And put more plants and shrubs around to make it look a bit more gardenified.
0:54:14 > 0:54:19Three months after buying the flat, Suzanne is already planning to move on.
0:54:19 > 0:54:22What does she plan to do with the property?
0:54:22 > 0:54:26If I could sell it at good price, I would and then buy something when I get back.
0:54:26 > 0:54:29But if not I'll rent it out because I like this place, it's nice.
0:54:29 > 0:54:32# And soon you will find that there comes a time
0:54:32 > 0:54:34# For making your mind up. #
0:54:34 > 0:54:39Holding on to the flat could give time for Suzanne's investment to mature, if the property market
0:54:39 > 0:54:41takes a turn for the better.
0:54:41 > 0:54:44But the decision to travel is not recent.
0:54:44 > 0:54:46I wanted to take a year off and travel a bit.
0:54:46 > 0:54:50So this the best time for me at the moment to do that.
0:54:50 > 0:54:54So I want to take advantage of it and just hop off somewhere.
0:54:56 > 0:54:59What will Suzanne do, sell or rent?
0:54:59 > 0:55:02To help her make that all-important decision,
0:55:02 > 0:55:07we invited two local estate agents along to the finished flat.
0:55:07 > 0:55:11Impressions of the property is that it has been brightened, lightened.
0:55:11 > 0:55:16Really done what the area commands, or really dictates.
0:55:16 > 0:55:20I think it's been very well done. I think that the clear, white paint
0:55:20 > 0:55:25is always good, opens it up and makes it feel nice, bright and spacious.
0:55:25 > 0:55:27This is easily for sale or for rental.
0:55:27 > 0:55:30It wouldn't be a problem in either market at the moment.
0:55:30 > 0:55:35Good news for Suzanne. But remember, she's spent around £223,000 so far.
0:55:35 > 0:55:38What could she sell the flat for?
0:55:38 > 0:55:44I feel this property you should be able to achieve, in this market, between £290,000 and £295,000.
0:55:44 > 0:55:49I would envisage you'll be looking in the region of £290,000.
0:55:49 > 0:55:51Wow, that's really good.
0:55:51 > 0:55:53I'm surprised.
0:55:53 > 0:55:54Pleasantly surprised.
0:55:54 > 0:55:57No wonder. In just three months,
0:55:57 > 0:56:04Suzanne could make a potential £67,000 pre-tax profit. What about rent?
0:56:04 > 0:56:10Per calendar month, excluding utility bills, I would expect about £1,200 a month.
0:56:10 > 0:56:16I would say that you would be looking in the region of about £1,100 to £1,200 a month.
0:56:16 > 0:56:18Very nice.
0:56:18 > 0:56:20Excellent. They're both good.
0:56:20 > 0:56:24That would give Suzanne a 6.5% gross yield.
0:56:24 > 0:56:30So, with a late gap year beckoning, have those valuations helped with her decision?
0:56:30 > 0:56:33My feeling is that I should sell,
0:56:33 > 0:56:35seeing as the prices are quite good.
0:56:35 > 0:56:37So it might be a good time now.
0:56:39 > 0:56:45I don't know about you, but I never know what to expect on properties that we feature on this show.
0:56:45 > 0:56:50Sometimes they're just are full of surprises and we'll have more next time on Homes Under The Hammer.
0:56:50 > 0:56:52- See you then.- Goodbye.- Goodbye.
0:56:52 > 0:56:55For more information about Homes Under The Hammer,
0:56:55 > 0:56:58including how the programme was made,
0:56:58 > 0:57:01visit the website at bbc.co.uk
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd.
0:57:05 > 0:57:08E-mail subtitling@bbc.co.uk