0:00:02 > 0:00:03Hello. Now, at times of economic uncertainty,
0:00:03 > 0:00:07it can be extremely worrying to part with your cash,
0:00:07 > 0:00:11even to buy property which used to be considered as "safe as houses".
0:00:11 > 0:00:15It can be daunting at the best of times, no more so than now.
0:00:15 > 0:00:21You know what, you have to do your research, grit your teeth and then buy your home under the hammer.
0:00:46 > 0:00:49One man's trash is another's treasure.
0:00:49 > 0:00:52That's true of properties sold at auction.
0:00:52 > 0:00:57Yes, sometimes you just need imagination to see beyond the depths of the dodgy decor.
0:00:57 > 0:01:02So let's see what's in the treasure trove of properties in today's show.
0:01:02 > 0:01:08In Walthamstow, London, things are far from ideal in this flat.
0:01:08 > 0:01:09This is horrendous.
0:01:12 > 0:01:15It doesn't get much better at this semi in Kent.
0:01:15 > 0:01:18I always wonder why houses like this go to auction.
0:01:18 > 0:01:22In this case, I think it's because of that.
0:01:24 > 0:01:28And in Derbyshire the plot thickens.
0:01:28 > 0:01:30That's kind of weird.
0:01:30 > 0:01:32More investigation required.
0:01:34 > 0:01:36All these properties have been sold at auction.
0:01:36 > 0:01:41We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:51 > 0:01:55When it comes to property, being close to good transport links is regarded as positive.
0:01:57 > 0:02:02However, not when this flat you're thinking about buying is right at the side of them.
0:02:02 > 0:02:05I'm in Walthamstow, E17 in London.
0:02:05 > 0:02:10£105,000 what did it get you at auction?
0:02:10 > 0:02:16It's a one-bedroom ground floor flat with attractive period features. I love the bay window.
0:02:16 > 0:02:20There is an area at the front which offers off-street parking potential.
0:02:20 > 0:02:27As it's on the ground floor, there's also the bonus of a garden, although it's rather overgrown.
0:02:30 > 0:02:34The first thing to say, you've got this shared entrance. Which isn't ideal.
0:02:34 > 0:02:40It gets worse. You come through the door of the flat and into this horrible little corridor area.
0:02:40 > 0:02:42Extremely claustrophobic.
0:02:42 > 0:02:46I don't like that at all. It's redeemed as soon as you come into this room.
0:02:46 > 0:02:49The lounge, front sitting room area. Absolutely lovely.
0:02:49 > 0:02:55High ceilings and original features have been left here. Lots of light pouring in through the windows.
0:02:55 > 0:02:56Then through to the bedroom.
0:02:56 > 0:03:01Again not a bad size space. More nice airy kind of feel to the place.
0:03:01 > 0:03:05Yeah, thank goodness for that. What are you going to do about this?
0:03:05 > 0:03:08I don't know. It leads through to the rest of the flat.
0:03:10 > 0:03:12This is horrendous.
0:03:14 > 0:03:19You know, it's a real Jekyll and Hyde flat this one.
0:03:19 > 0:03:22You have this big room at the front, reasonable-sized bedroom.
0:03:22 > 0:03:27Then this horrible corridor, through to what is a really large kitchen/diner.
0:03:27 > 0:03:32Somebody is half way through doing some renovation work. Interesting choice of location for the bath!
0:03:32 > 0:03:35Joking aside, you'll have to put units in here and sort it out.
0:03:35 > 0:03:38I love the fact you've got this big space to play with.
0:03:38 > 0:03:44I know, if I owned this place, I would spend a lot of time in here. Thinking it through, maybe
0:03:44 > 0:03:48thin corridor, compromise.
0:03:48 > 0:03:50It's worth it?!
0:03:51 > 0:03:54In addition to this vast kitchen dining area there is also
0:03:54 > 0:03:58the more appropriate space for this bath in a well-sized bathroom.
0:03:58 > 0:04:03The corridor is unusual, I don't mean in a good way.
0:04:03 > 0:04:07It is rare to find such a spacious one-bedroomed flat,
0:04:07 > 0:04:11with the bonus of that garden and a guide price of £105,000,
0:04:11 > 0:04:13it sounds pretty reasonable to me.
0:04:13 > 0:04:15What does a local estate agent think?
0:04:19 > 0:04:22It's a lovely Victorian flat with plenty of character.
0:04:22 > 0:04:23There is room for expansion.
0:04:23 > 0:04:27You can extend to the front, with making off-street parking.
0:04:27 > 0:04:30To the rear there is room to build an extension.
0:04:30 > 0:04:33So that room for improvement is a definite plus.
0:04:33 > 0:04:37But extensions cost money and sometimes they don't pay for themselves.
0:04:37 > 0:04:40How much would the value change here?
0:04:42 > 0:04:49For a one bed, in good condition, you are looking at £145,000, two bed, £165,000.
0:04:49 > 0:04:54Adding an extension is unlikely to add to its worth on the market.
0:04:54 > 0:04:56But would it alter rental values?
0:04:56 > 0:05:01The one bedroom you are looking at £725 per calendar month.
0:05:01 > 0:05:04Two bedroom could be up to £900 per calendar month.
0:05:04 > 0:05:08That is where a possible extension might cover its costs.
0:05:10 > 0:05:16For me, this is a real added bonus and I guess why ground floor flats command a premium.
0:05:16 > 0:05:19Straightaway, I'm thinking stick a set of patio doors in there.
0:05:19 > 0:05:24Bring the garden into the property itself. The down side is you have a railway line there,
0:05:24 > 0:05:27so it'll be noisy, but I'd guess you will get used to that.
0:05:27 > 0:05:31All in all, £105,000, for a one-bedroomed flat
0:05:31 > 0:05:35like this, in reasonable condition, I've even got over that corridor.
0:05:35 > 0:05:38It was a good one to go for when it went to the auction.
0:05:41 > 0:05:44Lot 29.
0:05:44 > 0:05:47Walthamstow. Where do you want to start on this one?
0:05:47 > 0:05:49Good lot. Walthamstow.
0:05:49 > 0:05:51No-one here for the Walthamstow.
0:05:51 > 0:05:55How much? £100. £100,000 over here.
0:05:55 > 0:05:58I will say £100,000. Anyone else?
0:06:00 > 0:06:02£102,000, 103,000,
0:06:03 > 0:06:07104,000, 110,000.
0:06:07 > 0:06:08111,000.
0:06:08 > 0:06:15You are going to lose it. I'm going to sell it to him at £110,000. £110,000. Anyone else?
0:06:18 > 0:06:22It's going. Can't believe it. £110,000.
0:06:22 > 0:06:25First time, second time, third and last time.
0:06:25 > 0:06:28Have you all done? £110,000.
0:06:28 > 0:06:30Sold to you, good buy.
0:06:30 > 0:06:35They were hardly clammering for this one in the auction room.
0:06:35 > 0:06:42The bidder who decided it was worth a punt and was prepared to stump up £110,000 was Londoner Roy.
0:06:45 > 0:06:50- Roy, good to meet you.- How are you doing?- Congratulations. Very good. How about this place?
0:06:50 > 0:06:56Very pleased with it really. We was going to go up to £120,000, so, £110,000 we was quite happy.
0:06:56 > 0:06:58Right. Why did you want to buy it?
0:06:58 > 0:07:03It wasn't this particular place. We was looking for somewhere we could probably make a few quid.
0:07:03 > 0:07:09When we went to the auctions we were looking at three or four different properties. We got this one.
0:07:09 > 0:07:13We was going to add a bit on with another one but we didn't get that.
0:07:13 > 0:07:20- Right.- This is one of the ones that we went for that we got. We are pleased with it.
0:07:20 > 0:07:26- Tell me more about you? Is this something you do a lot of?- I'm a builder. I do for other people.
0:07:26 > 0:07:29The opportunity has come up to do it for myself.
0:07:29 > 0:07:34- How long have you been a builder for?- Since I was knee high to a grasshopper.
0:07:36 > 0:07:4017, 18 I started in the building trade.
0:07:40 > 0:07:43I'm now 27, turned!
0:07:43 > 0:07:45So why the wait?
0:07:45 > 0:07:47Why do it after all these years?
0:07:47 > 0:07:52Financing. It doesn't matter how much you earn, when you've got a family it goes.
0:07:52 > 0:07:56To save up enough money to do it, like I say, the opportunity arose.
0:07:56 > 0:08:00A friend of mine had a few quid as well. He put some finances in.
0:08:00 > 0:08:04And, like with my knowledge and his money we should do all right.
0:08:04 > 0:08:09Roy had been looking to dip his toe into the property developing game for a while.
0:08:09 > 0:08:12He felt that the timing was right now and sees the current slump
0:08:12 > 0:08:17in prices as an opportunity rather than a deterrent.
0:08:19 > 0:08:21So why Walthamstow?
0:08:21 > 0:08:26No particular reason just, as I say, like I live in Islington.
0:08:26 > 0:08:31I had a house over here years ago, like long time ago.
0:08:31 > 0:08:33I sort of know the rough sort of prices.
0:08:33 > 0:08:37I know it's an affordable area. I couldn't do this in Islington.
0:08:37 > 0:08:42I'm feeling sort of Hackney, Walthamstow is the next sort of
0:08:42 > 0:08:46best place that I could be able to afford it. That's why Walthamstow.
0:08:46 > 0:08:48OK.
0:08:48 > 0:08:52Walthamstow came to me rather than me going to Walthamstow.
0:08:52 > 0:08:55This is where some local knowledge is useful.
0:08:55 > 0:08:58Roy knows his area and his market.
0:08:58 > 0:09:02He has checked out prices nearby so has some idea of his potential mark-up.
0:09:02 > 0:09:07He is also aware of what work is worth carrying out on the flat.
0:09:07 > 0:09:13- Not next door, but one past that is up for sale now for £200. - £200? Right.
0:09:13 > 0:09:18If we put an extension on and make it into a two bedroom hopefully there's a few quid to be made.
0:09:18 > 0:09:20Single storey?
0:09:20 > 0:09:26Single storey, but we want to go right across the whole width of the garden, as opposed to
0:09:26 > 0:09:28the width of the house at the back.
0:09:28 > 0:09:33Make that into a courtyard there that will have an entrance into it through this.
0:09:33 > 0:09:35That window is going to be a door.
0:09:35 > 0:09:39- Oh, wow.- The bay will be a door.
0:09:39 > 0:09:43If you look out the back, there will be a wall across there with a door.
0:09:43 > 0:09:46There will be three doors coming into a courtyard there.
0:09:46 > 0:09:48These two will be bedrooms. If they let us
0:09:48 > 0:09:52go the whole way the living room will be going right across the back.
0:09:52 > 0:09:56The kitchen, the kitchen dining area will be down there.
0:09:56 > 0:09:58That's ambitious and means the whole layout of
0:09:58 > 0:10:02the flat will change significantly if he gets the planning permission.
0:10:02 > 0:10:08There are, of course, other areas to tackle regardless of whether Roy can extend or not.
0:10:11 > 0:10:13What about this little corridor?
0:10:13 > 0:10:16It's the only bit of the flat that really bugs me?
0:10:16 > 0:10:19Where the stairs go, where it goes round the corner
0:10:19 > 0:10:23we will open up underneath the stairs to make it spacious.
0:10:23 > 0:10:27It's a bit tight as you go down there. I can hardly walk down there.
0:10:27 > 0:10:33I was going to say I have to go sideways, but sideways is probably worse than straight on.
0:10:33 > 0:10:35How much is it going to cost?
0:10:35 > 0:10:40If we don't do the extension, £10,000, £12,000, something like that.
0:10:40 > 0:10:46If we do the extension, you can probably add another £12,000, may be £15,000 on.
0:10:46 > 0:10:49We are £25,000 to £30,000 if we get the extension like.
0:10:49 > 0:10:52That's with, like, we'll do the front garden, we'll do
0:10:52 > 0:10:56the back garden, new fences, like new bathroom, new kitchen.
0:10:56 > 0:10:59It will be all be brand new. So, it will look nice when it's done.
0:10:59 > 0:11:02Presumably you are doing all the work?
0:11:02 > 0:11:09Majority of it. Sometimes I might delegate, most of it I'll do. Me and my son.
0:11:09 > 0:11:11My son does a fair bit.
0:11:11 > 0:11:14He is pretty handy now. My old man might help me a bit.
0:11:14 > 0:11:18That is interesting - three generations working on this project?
0:11:18 > 0:11:24Probably the two generations, apart from me, won't do too much, they're a bit lazy. Mainly down to me.
0:11:24 > 0:11:27As I say, they'll help out for sure.
0:11:27 > 0:11:31This is potentially an exciting and extensive
0:11:31 > 0:11:36first solo project for Roy, but he will have a little help from friends and family.
0:11:42 > 0:11:46Well, Roy has certainly got the experience needed to make a success of this.
0:11:46 > 0:11:50It's great he has his son and dad involved in the project.
0:11:50 > 0:11:56I'm a bit concerned about what he thinks he might get for it on the open market in today's conditions.
0:11:56 > 0:12:00Also, a lot depends on getting the planning permission. How will he get on?
0:12:00 > 0:12:02You can find out later in the show.
0:12:06 > 0:12:11The Kent coast around the River Medway is an area well geared up for commuters.
0:12:11 > 0:12:17Trains whisk you to London in under an hour. There is the benefit of living in the countryside,
0:12:17 > 0:12:21except maybe not in the heart of Gillingham, where I am today.
0:12:24 > 0:12:30As you can see, I'm on a busy A-road, parking is a no-no.
0:12:30 > 0:12:35You've got a bus stop here. By the sounds of things, sleeping may be off the agenda as well.
0:12:35 > 0:12:38Here we are, it's a semi-detached, two-bedroom house.
0:12:38 > 0:12:41The guide price just £80,000 to 90,000.
0:12:41 > 0:12:45Let's go inside and get some peace and quiet.
0:12:47 > 0:12:52Well, if it's transport links you're after, this is about as handy as it gets.
0:12:52 > 0:12:54You won't have far to struggle with the shopping.
0:12:54 > 0:12:58I'm not sure I would want a bus stop directly outside my front window.
0:12:58 > 0:13:03The house itself could do with a bit of paint to bring it up to par with the neighbours.
0:13:03 > 0:13:07Let's get in from that busy road.
0:13:07 > 0:13:11Wow, this place just goes on and on and on.
0:13:11 > 0:13:17It is like a tardis. We've got a front reception room here. Luckily, there is double glazing.
0:13:17 > 0:13:21You won't hear all that traffic noise - so much.
0:13:21 > 0:13:25You still can hear it faintly. You have polystyrene tiles in here.
0:13:25 > 0:13:26They need to come down.
0:13:26 > 0:13:32The whole place needs renovating. It really is in a bad state of repair.
0:13:32 > 0:13:34Look at this, walls feel a bit wet.
0:13:34 > 0:13:36There is wallpaper ripping off.
0:13:36 > 0:13:40The carpets are awful. It's interesting, though, because there is
0:13:40 > 0:13:44a spiral staircase leading to the cellar.
0:13:44 > 0:13:49Then round here, look at this, you've got a spiral staircase
0:13:49 > 0:13:53with a beautiful curved wall leading upstairs to the bedrooms.
0:13:53 > 0:13:57You wouldn't expect to see something like that in a house like this in Gillingham.
0:13:57 > 0:14:01It's quite unusual. You have a little kitchen to the back there
0:14:01 > 0:14:04and through here, you've got the back reception room.
0:14:06 > 0:14:10OK. So the garden table doesn't exactly scream luxury living.
0:14:10 > 0:14:14This place is always going to struggle with its location on the main road.
0:14:14 > 0:14:20But that spiral staircase does leave space for two good sized reception rooms on the ground floor.
0:14:20 > 0:14:24The kitchen obviously needs a total revamp, but with a bit of thought
0:14:24 > 0:14:26you could make better use of the space on offer.
0:14:26 > 0:14:30When you consider that there's also a toilet just beyond that,
0:14:30 > 0:14:33well, all in all, there is quite a lot of scope here.
0:14:33 > 0:14:36The same is true of the garden, which could become
0:14:36 > 0:14:41a welcome sanctuary from the road, if you tidied it up first. What about the bedrooms?
0:14:47 > 0:14:52Up the spiral staircase and it's impressive, as well as practical.
0:14:52 > 0:14:56These staircases just give you so much more floor space.
0:14:56 > 0:14:58Up here you've got two bedrooms.
0:14:58 > 0:15:01It really feels quite spacious.
0:15:01 > 0:15:03But do you know what? Alarm bells are ringing.
0:15:03 > 0:15:07I always wonder why houses like this go to auction.
0:15:07 > 0:15:09In this case, it's because of that.
0:15:09 > 0:15:15A crack-and-a-half. The wall is about an inch away from the door frame.
0:15:15 > 0:15:18I'm just wondering if you can see that on the outside wall?
0:15:18 > 0:15:21There is only one way to find out.
0:15:21 > 0:15:25As I suspected, this crack runs deep.
0:15:25 > 0:15:31It runs all the way from the top, to the bottom of this wall.
0:15:31 > 0:15:33A survey on this house is a must.
0:15:35 > 0:15:40It is certainly a worry and could cost a lot to sort out. But the bathroom here is huge.
0:15:40 > 0:15:46I reckon that with all the space on offer you might get at least one more bedroom in this property.
0:15:48 > 0:15:56So, at the £80,000 to £90,000 guide price, is this a worthwhile project?
0:15:56 > 0:16:00I've invited along a local estate agent to hear what he thinks.
0:16:00 > 0:16:03I like the house. I like the character.
0:16:03 > 0:16:10I like the fact that it is in a central position and it just has a nice feel about it.
0:16:10 > 0:16:12It needs pretty much everything doing.
0:16:12 > 0:16:14Most of the windows have been double glazed,
0:16:14 > 0:16:17there is a heating system included.
0:16:17 > 0:16:20It has a cellar, which a lot of buyers are looking for now,
0:16:20 > 0:16:23to convert to another room or a gym or a work area.
0:16:23 > 0:16:26What about that main road?
0:16:26 > 0:16:28It must be a disadvantage?
0:16:28 > 0:16:30It is a busy road during the day time.
0:16:30 > 0:16:33I think evenings it will be a lot quieter.
0:16:33 > 0:16:37The trade-off for that is the fact that the station is less than a two-minute walk.
0:16:37 > 0:16:42Which makes this attractive to local buyers and London commuters.
0:16:42 > 0:16:45What could you earn from this as a rental property?
0:16:45 > 0:16:48Similar properties in this area that we rent
0:16:48 > 0:16:52are making somewhere around £600 to £625 per calendar month.
0:16:52 > 0:16:56Creating a third bedroom and converting the rear reception room into a fourth
0:16:56 > 0:17:01could add as much as £350 per calendar month to the rental value.
0:17:01 > 0:17:06This would apply especially if you were looking at this as a student let for the nearby university.
0:17:06 > 0:17:11But it would cost more to do and wouldn't necessarily add to the resale value.
0:17:11 > 0:17:16I would put this house on the market for up to £135,000.
0:17:20 > 0:17:23This house has issues.
0:17:23 > 0:17:25Now the road will keep prices down.
0:17:25 > 0:17:27That bowing wall is a worry.
0:17:27 > 0:17:29It could prove costly.
0:17:29 > 0:17:32There is, however, a healthy margin to be had here.
0:17:32 > 0:17:36If it goes for anything near the guide prize and sells on for the
0:17:36 > 0:17:42estimated £135,000, well it could be a nice little earner indeed.
0:17:42 > 0:17:45Let's see who did their figures in the auction room.
0:17:49 > 0:17:51Lot 59. Jeffrey Street in Gillingham.
0:17:51 > 0:17:54Where will you start me on this one? Guide of 80 to 90.
0:17:54 > 0:17:56Is there a bid off 80 to start me? £80,000.
0:17:56 > 0:18:0080, I'm on the way. £80,000 I'm bid.
0:18:00 > 0:18:0381, take it slowly. 81,000. And 2.
0:18:03 > 0:18:0781,000 I'm bid. 82 I'm looking for.
0:18:07 > 0:18:11Are we all done at £81,000? 82, I'm obliged at the front.
0:18:11 > 0:18:1382 I've got. And 3 at the back.
0:18:13 > 0:18:15More on that side if you like. 83.
0:18:15 > 0:18:19At £82,000, I've got 83 I'm looking for.
0:18:19 > 0:18:2183 I've got.
0:18:21 > 0:18:234, if you like. 84.
0:18:23 > 0:18:25And 5, 85 in the aisle. 85 and 6.
0:18:25 > 0:18:3186, 85, sitting in the aisle I've got. I've got you now, sir. 85.
0:18:31 > 0:18:32And 6, if you like.
0:18:32 > 0:18:35More at the back. At £85,000.
0:18:35 > 0:18:40I will sell it at 85. It's got to be worth another bid. £86,000 at the back, if you like.
0:18:40 > 0:18:43Maiden bidder. 86. Against both of you.
0:18:43 > 0:18:46Another 1, another 1.
0:18:46 > 0:18:49At £85,000 I've got. Sitting in the aisle for the first time.
0:18:49 > 0:18:51At £85,000.
0:18:51 > 0:18:56For the second time. Good value this one. One last chance.
0:18:56 > 0:19:0185 for the third and final time if you're sure you're all done. It's yours, sir, for £85,000.
0:19:01 > 0:19:02Well done.
0:19:02 > 0:19:07The winning bidders were first time developers and motorbike enthusiasts Richard and Martin.
0:19:07 > 0:19:10Richard works as a housing office.
0:19:10 > 0:19:15Martin has given up his job as a handyman to take on this property full-time.
0:19:15 > 0:19:16# Motorbiking
0:19:17 > 0:19:18# Motorbiking
0:19:20 > 0:19:21# Motorbiking... #
0:19:21 > 0:19:24Guys congratulations. This is really good news.
0:19:24 > 0:19:27Tell me about the auction, how were you feeling?
0:19:27 > 0:19:31- Very nervous. - Very, very nervous.- Were you?- Very apprehensive about it.
0:19:31 > 0:19:33It was a bit of a mess really.
0:19:33 > 0:19:37- Quite confusing. - I'd gone to the toilet.
0:19:37 > 0:19:39There were three more lots.
0:19:39 > 0:19:41Then I thought, that will be enough time.
0:19:41 > 0:19:44Two of them were just like, we are not doing those ones.
0:19:44 > 0:19:48I could hear as I was washing my hands. Quick get back to the room!
0:19:48 > 0:19:50Were you the one that was going to bid in the first place?
0:19:50 > 0:19:52Yeah, we had decided I was going to do it.
0:19:52 > 0:19:55I sat down with you.
0:19:55 > 0:19:58I said, "Have you bid yet?" You hadn't, had you?
0:19:58 > 0:20:01- No...- We were waiting to bid. We both went at the same time.
0:20:01 > 0:20:03Hilarious!
0:20:03 > 0:20:05And that was it. Hands up once.
0:20:05 > 0:20:06We only bid once.
0:20:06 > 0:20:11- Had Martin not got back in time from the toilet, would you have bid on your own?- I would have done!
0:20:11 > 0:20:12I was getting ready!
0:20:14 > 0:20:17Richard and Martin own a few properties between them.
0:20:17 > 0:20:20But this is the first development project they've taken on together.
0:20:20 > 0:20:23There is a good reason why Martin was designated bidder
0:20:23 > 0:20:27and that is, despite his training as a surveyor,
0:20:27 > 0:20:30Richard had only ever seen photos of the property.
0:20:30 > 0:20:33Richard has a full-time job.
0:20:33 > 0:20:37I go out and look at all the houses to get the potential shortlist.
0:20:37 > 0:20:39I would take a photograph
0:20:39 > 0:20:42of every single conceivable corner and feature
0:20:42 > 0:20:44that I could think of doing.
0:20:44 > 0:20:47Richard would have to come home from work and look at hundreds of photos
0:20:47 > 0:20:50of this angle and that angle of some ratty old house.
0:20:50 > 0:20:53From hundreds of different houses?
0:20:53 > 0:20:55From about five or six.
0:20:55 > 0:20:58I would shortlist them. Then further shortlist after that, you know.
0:20:58 > 0:21:01So, it was the staircase, really,
0:21:01 > 0:21:04- that took both of our attention, didn't it?- Yeah, yeah.
0:21:04 > 0:21:09It just had such a kooky feel about it which then, in turn,
0:21:09 > 0:21:12makes all the rooms larger than they would normally be
0:21:12 > 0:21:13in a house this size.
0:21:13 > 0:21:17That spiral staircase certainly gives this place a lot of character.
0:21:17 > 0:21:21But there was one thing that didn't show up on Martin's photos.
0:21:21 > 0:21:22The crack in the wall.
0:21:22 > 0:21:29I took a photograph from down the lane of the side elevation.
0:21:29 > 0:21:31- Completely missed the big giant crack.- Huge.
0:21:31 > 0:21:34The side of the wall coming off the side of the house.
0:21:34 > 0:21:38- He didn't take a photograph of that, did he now?- No, I didn't know about that!
0:21:38 > 0:21:41I photographed the side wall!
0:21:41 > 0:21:43But I missed. I did miss that one.
0:21:43 > 0:21:46To be fair to Martin, that crack wasn't as obvious
0:21:46 > 0:21:47when he visited the property.
0:21:47 > 0:21:50But given that Richard has the surveying background,
0:21:50 > 0:21:54wouldn't it have made more sense for him to check it out?
0:21:54 > 0:21:56I wasn't available for the viewings.
0:21:56 > 0:22:00- They come up at such short notice sometimes.- Midweek.
0:22:00 > 0:22:02I'm just not able to do it. We had to rely on Martin.
0:22:02 > 0:22:06It is your expertise that we needed at that time. It's funny isn't it?
0:22:06 > 0:22:09- It's a bit of a wing and a prayer. - It was a bit of a risk.
0:22:09 > 0:22:12But we found a report on the floor
0:22:12 > 0:22:16talking about the crack, and there is no ongoing subsidence.
0:22:16 > 0:22:20The bowing is symptomatic of end of terrace houses,
0:22:20 > 0:22:21which can be rectified.
0:22:23 > 0:22:26I hope they're right. Obviously, Richard's experience
0:22:26 > 0:22:29is going to be very useful when it comes to mending that crack.
0:22:29 > 0:22:33Martin will be overseeing this project on a day-to-day basis.
0:22:33 > 0:22:36What is his background?
0:22:36 > 0:22:39I've had a number of jobs in the last few years.
0:22:39 > 0:22:40Immediately before this
0:22:40 > 0:22:43I was a professional handyman on a motorbike.
0:22:43 > 0:22:46Before that was a compositor working in visual effects.
0:22:46 > 0:22:48Before that I was a costume designer.
0:22:48 > 0:22:50So quite a mixture of work there.
0:22:50 > 0:22:54Yes, I've been trying to get from costume design, which was sort of five years ago,
0:22:54 > 0:23:00to a bit more... I want to change my tool set to be a bit more, like,
0:23:00 > 0:23:01you know, butch!
0:23:04 > 0:23:08- What do you mean, a bit more butch? - You know, sewing machines!
0:23:08 > 0:23:10You want to get rid of the curtains
0:23:10 > 0:23:14and start doing something more like knocking walls down.
0:23:14 > 0:23:17Some of the costumes that I was...
0:23:17 > 0:23:19Yeah, I used to use tools, occasionally.
0:23:19 > 0:23:22I really liked it, you know, proper workman's tools.
0:23:22 > 0:23:24I really liked it, so...
0:23:24 > 0:23:29I've tried to sort of get myself to this side of the creative sphere.
0:23:29 > 0:23:32You know, you will have to do the curtains here.
0:23:32 > 0:23:35- You will have to start doing all that again!- I can do all that, you know.
0:23:35 > 0:23:38I can do all that. Which is funny.
0:23:38 > 0:23:39And handy too.
0:23:39 > 0:23:44The guys have allocated themselves a £15,000 budget to renovate.
0:23:44 > 0:23:48It will be Martin's job to see that they stick to it.
0:23:48 > 0:23:50I will do three days in the week.
0:23:50 > 0:23:53Staying over. The other days I'll to-and-fro home, you know.
0:23:53 > 0:23:58- Just to keep the mileage down a bit. - How long do you think it's going to take you?
0:23:58 > 0:24:01- Three to four months. - Three to four months, we hope.
0:24:01 > 0:24:04- You're quite excited about doing this, aren't you?- I am.
0:24:04 > 0:24:06You twinkle when you talk about it?
0:24:06 > 0:24:11I am. Very... I like to organise things.
0:24:11 > 0:24:14I'm probably more scared of the whole project than Martin, maybe.
0:24:14 > 0:24:17But, I've got faith in what he's going to do.
0:24:17 > 0:24:22I'm looking forward to the transformation it's going to take.
0:24:22 > 0:24:26Hopefully give us the confidence we need to keep on going.
0:24:26 > 0:24:29It's an exciting time for us.
0:24:34 > 0:24:37Richard and Martin are two totally different characters
0:24:37 > 0:24:40that compliment each other beautifully.
0:24:40 > 0:24:43A real ying and yang combo.
0:24:43 > 0:24:47The question is, will they be firing on all cylinders
0:24:47 > 0:24:51and go at full throttle to have this finished, or will it be a bumpy ride?
0:24:51 > 0:24:55Join me later to see how they get on with their journey.
0:24:57 > 0:24:58Coming up: In Derbyshire,
0:24:58 > 0:25:01there is more to this site than meets the eye.
0:25:01 > 0:25:05Suddenly, it's getting very interesting.
0:25:06 > 0:25:10We return to Kent to find out whether Richard and Martin
0:25:10 > 0:25:12are cracking on or cracking up.
0:25:12 > 0:25:14There were some low points.
0:25:14 > 0:25:17We really just wondered what it was we were trying to do.
0:25:19 > 0:25:23But first, has Roy's optimism been well founded?
0:25:23 > 0:25:25With my knowledge and his money, we should do all right.
0:25:29 > 0:25:31Back in Walthamstow, London,
0:25:31 > 0:25:36builder Roy paid £110,000 for a one bed-roomed flat at auction.
0:25:36 > 0:25:39He was keen to maximise its ground floor position
0:25:39 > 0:25:42and the garden that came with it.
0:25:45 > 0:25:48If we put an extension on, make it into a two bedroom,
0:25:48 > 0:25:51hopefully there's a few quid to be made.
0:25:51 > 0:25:53Right. Single storey, obviously?
0:25:53 > 0:25:55Yeah, single storey, but we want to go
0:25:55 > 0:25:57right across the whole width of the garden.
0:25:57 > 0:26:03So, five months later had Roy's ambitious plans come to fruition?
0:26:03 > 0:26:05Well, the front's looking great,
0:26:05 > 0:26:08with a new hard-standing parking area.
0:26:13 > 0:26:16While out the back...wow!
0:26:16 > 0:26:20He's done wonders with the garden.
0:26:20 > 0:26:23Yes, there is an extension.
0:26:23 > 0:26:26But it doesn't look quite as large as I was expecting.
0:26:26 > 0:26:29The two biggest changes we made to the property
0:26:29 > 0:26:31is the extension and the garden.
0:26:31 > 0:26:35Unfortunately we didn't get the planning permission
0:26:35 > 0:26:37that we applied for in the first place, which was
0:26:37 > 0:26:40a full width extension coming the full width of the garden.
0:26:40 > 0:26:43We had to make do with a smaller one, but it's turned out nice anyway.
0:26:43 > 0:26:47Secondly, we've done a hell of a lot of work in the garden,
0:26:47 > 0:26:49flattening it, landscaping it.
0:26:49 > 0:26:52Unfortunately we didn't budget for this,
0:26:52 > 0:26:55but we're quite pleased with it anyway in the end.
0:26:55 > 0:26:58The garden's a definite plus
0:26:58 > 0:27:01and shows the benefit of ground floor flats.
0:27:01 > 0:27:03So often these spaces are neglected.
0:27:03 > 0:27:06But Roy's turned it into a major selling point,
0:27:06 > 0:27:08designing the new layout of the flat around it.
0:27:12 > 0:27:16As you see, the extension turned out quite well.
0:27:16 > 0:27:19We've got a nice flow from the garden to the living room.
0:27:19 > 0:27:21The living room's a fair size.
0:27:21 > 0:27:24Also we're very pleased with the kitchen, the way it came out.
0:27:24 > 0:27:28Very nice, clean lines, modern looking.
0:27:28 > 0:27:31Also I got a very good deal with the man I play golf with.
0:27:31 > 0:27:33Everything was good.
0:27:40 > 0:27:44Yes, that new kitchen suits the new kitchen-diner area off to a T.
0:27:44 > 0:27:48With the front living room and bedroom redecorated and finished,
0:27:48 > 0:27:53Roy's been busy, although he's had help from family members.
0:27:57 > 0:27:59My old man did most the painting.
0:27:59 > 0:28:01My son done most of the donkey work.
0:28:01 > 0:28:03Between us we got it all out on time.
0:28:09 > 0:28:13Yeah, we get on all right. As long as they do what I say!
0:28:13 > 0:28:17Under Roy's supervision, the team have definitely
0:28:17 > 0:28:19now got the space optimized to the max here.
0:28:19 > 0:28:22He's even improved that narrow hallway,
0:28:22 > 0:28:24by removing the cupboard under the stairs.
0:28:24 > 0:28:28The bathroom's now got a bath.
0:28:28 > 0:28:31There's also a brand new suite and space-saving units.
0:28:31 > 0:28:34So, the flat is just about finished.
0:28:34 > 0:28:37Is Roy pleased with his first solo project?
0:28:40 > 0:28:42Well, it's more profitable, so therefore I enjoy it more.
0:28:42 > 0:28:46You know what I mean? I enjoy building anyway.
0:28:46 > 0:28:49I really do get a buzz out of taking something old
0:28:49 > 0:28:51that looks sort of dilapidated
0:28:51 > 0:28:53and when you walk out it's a lovely building.
0:28:53 > 0:28:56So I get a lot of pride from that anyway.
0:28:56 > 0:28:59So, I mean, doing me own one is the icing on the cake
0:28:59 > 0:29:03because I earn a little bit more out of it.
0:29:03 > 0:29:05Well, earning more in theory.
0:29:05 > 0:29:09That's provided he hasn't gone too wild with his spending
0:29:09 > 0:29:11on this £110,000 flat.
0:29:11 > 0:29:16It cost about £35,000, maybe a little bit more.
0:29:16 > 0:29:20We done... I mean, the extension wasn't that much,
0:29:20 > 0:29:23but the kitchen we spent a little bit more on.
0:29:23 > 0:29:26We spent quite a bit more in the back garden.
0:29:26 > 0:29:29We didn't allow anything in the back garden.
0:29:29 > 0:29:32We was just going to flatten it off and turf it.
0:29:32 > 0:29:35But we thought, no, in this sort of climate,
0:29:35 > 0:29:38I'd prefer something a little bit better.
0:29:38 > 0:29:42Hopefully we brought a bit of Hampstead to Walthamstow. That's what I like to think!
0:29:44 > 0:29:46Well, that £35,000 spend
0:29:46 > 0:29:51takes his total to around £145,000 to £150,000.
0:29:51 > 0:29:54And this is Walthamstow, not Hampstead.
0:29:54 > 0:29:57Has he perhaps been overindulging on his fixtures and fittings?
0:29:57 > 0:30:00What's the opinion of two local estate agents?
0:30:03 > 0:30:05In London it's all about station access.
0:30:05 > 0:30:07You've got probably a five or ten minute walk
0:30:07 > 0:30:10to the Victoria Line from here.
0:30:10 > 0:30:13It's the key to it all. If it's more than 15 minutes away from the station
0:30:13 > 0:30:15the prices come down considerably.
0:30:15 > 0:30:18So you've got a good mix here, you've got a lot of space
0:30:18 > 0:30:21and the station access, which adds to the value.
0:30:21 > 0:30:24I like the finish to the kitchen. The kitchen is very important.
0:30:24 > 0:30:27It's basically the heart of the accommodation
0:30:27 > 0:30:29and it's presented very well.
0:30:29 > 0:30:33In this area gardens are not normally done to this quality.
0:30:33 > 0:30:36Any private garden in a flat is a big selling point.
0:30:36 > 0:30:41Obviously they've landscaped it, new lawns, etc. I think it looks great.
0:30:41 > 0:30:44So, it definitely ticks a lot of boxes.
0:30:44 > 0:30:47But Roy has invested nearly £150,000 here.
0:30:47 > 0:30:50So what about that all-important re-sale value?
0:30:50 > 0:30:54We think this property in the current market should be worth,
0:30:54 > 0:30:56for two bedrooms, about £195,000.
0:30:56 > 0:31:00I recently valued the property between £190,000 and £200,000.
0:31:00 > 0:31:07Wow, that's not bad! Around the £190,000 mark could potentially see
0:31:07 > 0:31:08a £40,000 pre-tax profit.
0:31:08 > 0:31:10What does Roy think of that?
0:31:12 > 0:31:14The property's actually been sold.
0:31:14 > 0:31:17It was sold within the first week of being advertised.
0:31:17 > 0:31:21As soon as we finished we got the estate agent round and it went straight away.
0:31:21 > 0:31:24The accepted offer was for £193,000,
0:31:24 > 0:31:29which means he's on for that £40,000 pre-tax profit.
0:31:29 > 0:31:32Surely it's onwards and upwards.
0:31:32 > 0:31:36We're already looking for another property. The estate agent that's selling this
0:31:36 > 0:31:40has probably got one that might be of interest, and we're going to the auctions this Tuesday.
0:31:40 > 0:31:43So, this looks like the future for Roy.
0:31:43 > 0:31:47He is to be his own boss and perhaps his son's boss as well.
0:31:47 > 0:31:50My aspirations and hopes is to take an easy life, fishing and golf,
0:31:50 > 0:31:52and let my son do the work.
0:31:52 > 0:31:55Well, I think he might be quite a few properties away yet
0:31:55 > 0:31:59from swapping spade and trowel for golf club and fishing rod,
0:31:59 > 0:32:02but a few more developments like this
0:32:02 > 0:32:05will certainly help him move in the right direction.
0:32:10 > 0:32:16Welcome to Derby, a city undergoing a £2 billion regeneration.
0:32:16 > 0:32:20There are going to be new shops, homes, offices and leisure facilities,
0:32:20 > 0:32:22so things are definitely on the up here.
0:32:22 > 0:32:27And so, I find myself on Madison Avenue.
0:32:27 > 0:32:30No, not Madison Avenue, New York,
0:32:30 > 0:32:36with its chi-chi designer boutiques, but Madison Avenue, Chaddesden,
0:32:36 > 0:32:39near Derby, where up for auction was a plot of land
0:32:39 > 0:32:43with detailed planning permission for the erection of a three bed-roomed detached house.
0:32:43 > 0:32:46Guide price was £28,000.
0:32:46 > 0:32:51# It's up to you, New York... #
0:32:51 > 0:32:54What would £28,000 buy you on Madison Avenue, New York?
0:32:54 > 0:32:56A designer outfit maybe.
0:32:56 > 0:32:59So £28,000 for a plot of land with planning permission
0:32:59 > 0:33:01seems a pretty good deal to me.
0:33:01 > 0:33:04The first thing I notice is here on the curb,
0:33:04 > 0:33:08because in terms of getting access from the road, there isn't any.
0:33:08 > 0:33:11You will have to approach the council and get planning permission
0:33:11 > 0:33:14to have that curb lowered so you can get access into the plot.
0:33:14 > 0:33:16Next thing is the plot itself.
0:33:16 > 0:33:20We like it to be level. That's good news, the plot is level.
0:33:20 > 0:33:22It's about 20 metres by 11.
0:33:22 > 0:33:25A big plot, but it's currently covered in this concrete.
0:33:25 > 0:33:28That is going to be one devil's own job to get up.
0:33:28 > 0:33:29You'll have to factor
0:33:29 > 0:33:33some extensive excavation costs into that.
0:33:33 > 0:33:35Those are the first two things.
0:33:35 > 0:33:38But something much, much more serious is this.
0:33:38 > 0:33:41That, I wouldn't be surprised, is a mains sewer,
0:33:41 > 0:33:43running right through the centre of the plot.
0:33:43 > 0:33:49Building regulations say you can't construct a building within three metres of that. Hang on a second.
0:33:49 > 0:33:52One, two, three metres that way. OK?
0:33:52 > 0:33:56And then, one, two, three metres that way.
0:33:56 > 0:33:59The usable space on this plot that you can build on
0:33:59 > 0:34:00has shrunk dramatically.
0:34:00 > 0:34:03However, it has got detailed planning permission.
0:34:03 > 0:34:07That's kind of weird. More investigation required.
0:34:09 > 0:34:12Well, in the absence of Sherlock Holmes you will have to make do
0:34:12 > 0:34:16with Roberts of the yard, or maybe that's Roberts IN the yard,
0:34:16 > 0:34:18because this old garage space has got me puzzled.
0:34:18 > 0:34:23I want to see what the auction catalogue describes as detailed plans.
0:34:23 > 0:34:25Because without a thorough check
0:34:25 > 0:34:28I fear there could be a host of unforeseen problems.
0:34:28 > 0:34:31OK, let's talk about the numbers on this one.
0:34:31 > 0:34:35Say you get it for a couple of grand over the guide prize, that's £30,000.
0:34:35 > 0:34:39It will cost you about £70,000 to build yourself a three-bedroomed detached house on here.
0:34:39 > 0:34:44Approximately. So you have £100,000 plus cost invested in here.
0:34:44 > 0:34:48I know that a three-bedroomed detached house around these parts
0:34:48 > 0:34:49will sell for about £150,000.
0:34:49 > 0:34:54So you could potentially make £50,000, minus all your taxes.
0:34:54 > 0:34:58So, suddenly it's getting very interesting.
0:35:00 > 0:35:02OK, so, the numbers might add up,
0:35:02 > 0:35:06but is a three-bedroomed detached house right for the area?
0:35:06 > 0:35:08What does a local estate agent think?
0:35:13 > 0:35:18I understand there's detailed planning on the plot for a three bed detached house.
0:35:18 > 0:35:20We don't know how large the house is.
0:35:20 > 0:35:22But I suspect something of this size
0:35:22 > 0:35:25will probably take about 750-800 square feet.
0:35:25 > 0:35:28That's an OK size for a starter home.
0:35:28 > 0:35:31So the site can accommodate a house.
0:35:31 > 0:35:34But there won't be much of a garden.
0:35:34 > 0:35:39I think these days large gardens aren't everybody's cup of tea.
0:35:39 > 0:35:43When you can fly to Spain for £20, they'd probably rather do that than dig the garden.
0:35:43 > 0:35:46It's not such a big issue these days,
0:35:46 > 0:35:48but it might be a little bit too small.
0:35:48 > 0:35:52The estate agent only seems to have minor worries about the garden,
0:35:52 > 0:35:55but what type of house is right for the area?
0:35:55 > 0:35:59When it comes to marketing the property that's built here,
0:35:59 > 0:36:01I think the main issue will be,
0:36:01 > 0:36:03it may stick out like a sore thumb.
0:36:03 > 0:36:06It will be the only detached house in the street.
0:36:06 > 0:36:08They are mainly two-bed semis.
0:36:08 > 0:36:13And that's never easy. It's better to sell the cheapest house in the street than the most expensive.
0:36:13 > 0:36:15So they might struggle with that.
0:36:24 > 0:36:27Well, it's a good sized plot.
0:36:27 > 0:36:30I don't like the fact it's solid concrete. That's going to take a bit of clearing,
0:36:30 > 0:36:34you have the issue with the curb and that whole thing with the sewer.
0:36:34 > 0:36:37So definitely check this one out carefully before you buy it.
0:36:37 > 0:36:40Let's hope that's what somebody did when it went to auction.
0:36:43 > 0:36:45Lot number 18 is the building plot
0:36:45 > 0:36:49adjacent to 51 Madison Avenue in Chaddesden.
0:36:49 > 0:36:54Start me where you like for the building plot.
0:36:54 > 0:36:5728, £25,000 in the corner.
0:36:57 > 0:37:01At £25,000. 25, 26 somewhere else.
0:37:01 > 0:37:04At £25,000. 26, 26 is bid.
0:37:04 > 0:37:07At 26. 27. At 27. 28.
0:37:07 > 0:37:0828. 29.
0:37:08 > 0:37:1229. At 29.
0:37:12 > 0:37:1530 for you, Sir? 30 is bid.
0:37:15 > 0:37:17At £30,000.
0:37:17 > 0:37:2231. 31. A fresh bidder. £31,000. 32?
0:37:22 > 0:37:2632. At £32. 33, sir? 33 is bid.
0:37:26 > 0:37:29At £33,000. 34?
0:37:29 > 0:37:3234? £33,000. 34. At 34.
0:37:32 > 0:37:3535?
0:37:35 > 0:37:3735. Try one more. 35.
0:37:37 > 0:37:40At 35. 36.
0:37:40 > 0:37:4436? 35 on the far right. 36 somewhere quickly.
0:37:44 > 0:37:48At £35,000 then, once, 35,000 twice.
0:37:48 > 0:37:49Third and last opportunity.
0:37:49 > 0:37:53We're selling at £35,000.
0:37:53 > 0:37:55Sold at £35,000. Thank you.
0:37:55 > 0:38:00For £35,000, the new owner of the Madison Avenue site
0:38:00 > 0:38:02are Vic and his wife Poonam,
0:38:02 > 0:38:06who live just outside Birmingham, nearly an hour-and-a-half away.
0:38:06 > 0:38:08Builder Vic was attracted by the price
0:38:08 > 0:38:12and had high hopes this could be a successful project.
0:38:14 > 0:38:18- Vic, congratulations, you've got yourself a plot of land. - Thanks very much, mate.
0:38:18 > 0:38:20Why did you want to buy it?
0:38:20 > 0:38:23I want to build a house here and sell it.
0:38:23 > 0:38:26Now, there is a main sewer running across the plot.
0:38:26 > 0:38:29Do you know about that? What do you think about that?
0:38:29 > 0:38:35- We need to get in touch with Severn Trent for that.- The water board?
0:38:35 > 0:38:39That's right. The drawing didn't show any drainage or anything like that.
0:38:41 > 0:38:44So, the word 'detailed' sounds a bit of an overstatement.
0:38:44 > 0:38:47But they have at least been passed.
0:38:47 > 0:38:49What do these elusive plans show?
0:38:49 > 0:38:52They are showing the building with three bedrooms,
0:38:52 > 0:38:55one toilet downstairs, one bathroom upstairs, that's all.
0:38:55 > 0:38:59Nothing, they're not showing the ground level, where the sewerage can go,
0:38:59 > 0:39:01where the main supply's coming from and stuff like that.
0:39:01 > 0:39:05- They show nothing.- So quite a lot missing then from those plans? - Quite a lot, yeah.
0:39:05 > 0:39:07Main parts are missing anyway.
0:39:07 > 0:39:11- Did you know that before you bought it?- Not really, no.
0:39:11 > 0:39:15- So you've got a bit of negotiation with the planning people to do yet? - That's right, yeah.
0:39:15 > 0:39:17Let's hope this project doesn't literally
0:39:17 > 0:39:20go down the drain before it starts.
0:39:20 > 0:39:22But if Vic can get his hands on those detailed plans,
0:39:22 > 0:39:24how much will he spend on the build?
0:39:24 > 0:39:28# One way or another
0:39:28 > 0:39:31# I'm going to find ya I'm going to get ya... #
0:39:31 > 0:39:35It's going to be about 55 to 60, say.
0:39:35 > 0:39:39- The whole house, front and back garden.- Really?- Yeah.
0:39:39 > 0:39:42- So, are you doing a lot of that work yourself?- Yeah.
0:39:42 > 0:39:45I do have small contractors work for me, as well,
0:39:45 > 0:39:48like for brick laying, and some carpenters.
0:39:48 > 0:39:51I do most of the work myself, as well.
0:39:51 > 0:39:53Vic may do the main grafting,
0:39:53 > 0:39:55but he's ably supported by his wife, Poonam.
0:39:55 > 0:39:58In this case, perhaps she'll have the hardest job.
0:40:00 > 0:40:03Poonam, tell me what you're gonna be doing?
0:40:03 > 0:40:05I think I'll be doing all the phoning around for him.
0:40:05 > 0:40:09Getting the materials, the stock and stuff for him.
0:40:09 > 0:40:10What do you think about it?
0:40:10 > 0:40:13It's good. I think we've got it at a good price, yeah.
0:40:13 > 0:40:15We've got detailed planning permission.
0:40:15 > 0:40:18That is a bit of an issue. We're not sure what that is, are we?
0:40:18 > 0:40:21I think we'll find it somewhere.
0:40:21 > 0:40:23We've got the council reference number.
0:40:23 > 0:40:26Hopefully the plans are there, but we haven't got them.
0:40:26 > 0:40:28I can chase it up, yeah.
0:40:28 > 0:40:30That's gonna be quite important, isn't it?
0:40:30 > 0:40:33Ah-ha, that sounds a bit more encouraging.
0:40:33 > 0:40:36Where there's a council number, there are probably some documents.
0:40:36 > 0:40:40Let's hope for Vic and Poonam's sake they tell them
0:40:40 > 0:40:43what they want to know so they can crack on with the build.
0:40:43 > 0:40:48It might go up quite quickly because Vic appears to be a speedy worker.
0:40:48 > 0:40:50So, where did you two meet?
0:40:50 > 0:40:52We met at the airport in India,
0:40:52 > 0:40:56cos he's my sister's husband's younger brother.
0:40:56 > 0:40:58He came to pick us up at the airport for a holiday.
0:40:58 > 0:41:01So we met there and eight days later we got married.
0:41:01 > 0:41:03Eight days later!
0:41:03 > 0:41:06Wow! That really was love at first sight!
0:41:06 > 0:41:08It was, yeah.
0:41:08 > 0:41:09Where did you get married?
0:41:09 > 0:41:12In India, close to our house there.
0:41:12 > 0:41:14Right. So, what did your friends think?
0:41:14 > 0:41:16You went away, you weren't married,
0:41:16 > 0:41:19and didn't have a boyfriend and came back and whoosh.
0:41:19 > 0:41:21Yeah. We'd just gone for a holiday.
0:41:21 > 0:41:25I told my friends on the phone and they didn't believe me.
0:41:25 > 0:41:28So, we met up and I showed them all the wedding bangles and everything
0:41:28 > 0:41:30and it was like oh, my God!
0:41:30 > 0:41:33That's a heck of a thing to get on holiday, isn't it!
0:41:33 > 0:41:35The best souvenir, I think, isn't it.
0:41:35 > 0:41:36A husband!
0:41:36 > 0:41:40# Airport
0:41:40 > 0:41:41# Airport
0:41:41 > 0:41:44# You've got a smiling face
0:41:44 > 0:41:47# You took my lady to another place
0:41:47 > 0:41:50# Fly her away
0:41:50 > 0:41:53# Fly her away. #
0:41:54 > 0:41:57Well, I know there are pick-up points at airports,
0:41:57 > 0:42:00but I never knew there were that type of pick-up point!
0:42:00 > 0:42:04But let's hope they can get this project off the ground just as fast.
0:42:05 > 0:42:08So, not quite as plain sailing as Vic and Poonam
0:42:08 > 0:42:11might have liked when it comes to the planning on this plot.
0:42:11 > 0:42:16Definitely some issues to resolve, especially regarding that drain.
0:42:16 > 0:42:19But if it's anything like his speed at getting married,
0:42:19 > 0:42:22whatever's going on here will go up pretty quickly.
0:42:22 > 0:42:24Find out how they get on later in the show.
0:42:27 > 0:42:31You never quite know how it's going to go with property developing.
0:42:31 > 0:42:34Sometimes you take the wallpaper off and the plaster comes with it.
0:42:34 > 0:42:39Absolutely! But that's why it's so important to have time on your side,
0:42:39 > 0:42:43and a contingency fund, because things could potentially go wrong.
0:42:43 > 0:42:47So, how have our plucky property developers got on today?
0:42:49 > 0:42:51Earlier in the show, I met bike fans
0:42:51 > 0:42:54and first-time property developers, Richard and Martin.
0:42:54 > 0:42:56They had just brought this two-bedroomed
0:42:56 > 0:42:59semi detached house in Gillingham, Kent for £85,000.
0:42:59 > 0:43:02They'd set themselves a £15,000 budget
0:43:02 > 0:43:07and three to four months to renovate the property completely.
0:43:07 > 0:43:10Ex-costume designer turned handyman, Martin,
0:43:10 > 0:43:13was going to tackle most of the work himself.
0:43:13 > 0:43:17But the big crack which ran right down the outside wall worried me.
0:43:17 > 0:43:19# You gotta go, go. #
0:43:19 > 0:43:22As trained surveyor, Richard had been unable
0:43:22 > 0:43:25to view the property before the auction.
0:43:25 > 0:43:27I wondered if the guys had actually taken on
0:43:27 > 0:43:30more of a wild one than an easy rider?
0:43:30 > 0:43:33# I bought a new machine, hey I say. #
0:43:34 > 0:43:39But, ten months on, the project is finally nearing completion
0:43:39 > 0:43:42and seems to have been worth the wait.
0:43:42 > 0:43:46With a fresh coat of paint and one or two carefully chosen details,
0:43:46 > 0:43:49the front of the house has been transformed
0:43:49 > 0:43:52from the uninviting grey house that I first saw.
0:43:52 > 0:43:55At the back of the property the greenhouse and paving stones
0:43:55 > 0:43:59have gone and a new lawn has now been laid in their place.
0:43:59 > 0:44:03But the major changes are inside.
0:44:03 > 0:44:06This whole back area of the house, where it really wasn't
0:44:06 > 0:44:09planned very well, the back porch particularly had a problem.
0:44:09 > 0:44:11There were three doors all interacting.
0:44:11 > 0:44:13We sorted out the toilet door so it opens inwards.
0:44:13 > 0:44:17At the same time the guys have added some new cupboards,
0:44:17 > 0:44:22installed a new boiler and moved the door through to the kitchen.
0:44:22 > 0:44:25The kitchen itself wasn't planned very well, at all.
0:44:25 > 0:44:28There was a sloping ceiling that's been replaced.
0:44:28 > 0:44:31As you can see, the whole room has been efficiently planned
0:44:31 > 0:44:33so there's a much better use of space.
0:44:33 > 0:44:38Martin has put his creative skills to impressive effect here.
0:44:38 > 0:44:40A bigger window and this brand new kitchen
0:44:40 > 0:44:42have transformed this part of the house.
0:44:42 > 0:44:45Towards the front, the two reception rooms
0:44:45 > 0:44:48are well on their way to completion, as well.
0:44:48 > 0:44:50The walls have been re-plastered,
0:44:50 > 0:44:54repainted and in the case of the front room, completely removed.
0:44:54 > 0:44:56A new fireplace has gone in,
0:44:56 > 0:45:00central heating installed and the place is all re-wired.
0:45:00 > 0:45:04So, with just skirting, architrave and carpets to go,
0:45:04 > 0:45:06the property definitely has a new lease of life.
0:45:06 > 0:45:08In the process of fixing that crack,
0:45:08 > 0:45:11they even uncovered some history along the way.
0:45:15 > 0:45:18We had heard stories about this was the first house in the street
0:45:18 > 0:45:23and it was surrounded by a farm and the houses next door weren't there
0:45:23 > 0:45:26and the workers used to come on and off the farm.
0:45:26 > 0:45:29They were paid their wages through this small window.
0:45:29 > 0:45:32It wasn't until we actually found the window for ourselves
0:45:32 > 0:45:35it made sense and people have since commented on it
0:45:35 > 0:45:37and confirmed that was the case.
0:45:37 > 0:45:39That was quite a sweet little surprise.
0:45:39 > 0:45:43But the surprise they found in the cellar wasn't so sweet.
0:45:43 > 0:45:46The whole spiral staircase was completely shot downstairs
0:45:46 > 0:45:48in the cellar. The stairs were falling apart.
0:45:48 > 0:45:52It became apparent it needed major repair, particularly in the cellar
0:45:52 > 0:45:55that was supporting the whole staircase,
0:45:55 > 0:45:57and the treads had to be strengthened a bit.
0:45:57 > 0:46:00But I love it. It's been painted up now.
0:46:00 > 0:46:04We don't know whether we'll carpet it or not, but it looks great.
0:46:06 > 0:46:08Up that newly refurnished staircase, like the rooms
0:46:08 > 0:46:13down stairs, the front bedroom has been completely renovated.
0:46:13 > 0:46:15The guys have removed the fireplace
0:46:15 > 0:46:19and fitted a cupboard here to make best use of this room size.
0:46:22 > 0:46:25But it's at the back that the major changes
0:46:25 > 0:46:27have taken place on this floor.
0:46:27 > 0:46:31Remember that big bathroom? Well, it's gone.
0:46:31 > 0:46:34Halfway through we actually made a decision to
0:46:34 > 0:46:35take the bathroom out of there.
0:46:35 > 0:46:39We looked at various ways of working the bathroom to keep it there. It wasn't working.
0:46:39 > 0:46:43The sloping ceilings, the low level of the windowsill,
0:46:43 > 0:46:46it was just impossible to make it work properly.
0:46:46 > 0:46:49We made the decision to take it out of there
0:46:49 > 0:46:53and split what was the rear double bedroom into two.
0:46:53 > 0:46:58With that we created this new bathroom and we've done that by
0:46:58 > 0:47:01putting the bath at the back of the room there
0:47:01 > 0:47:05and knocking into the chimney breast to find a position for the toilet.
0:47:05 > 0:47:07And the wash hand basin to the left.
0:47:07 > 0:47:10And with nice tiling at the back of the bathroom, we think it's
0:47:10 > 0:47:13quite successful.
0:47:13 > 0:47:14So do I, Richard!
0:47:14 > 0:47:18Getting that extra bedroom will certainly add value here.
0:47:18 > 0:47:20Just as well because although Martin has done
0:47:20 > 0:47:24almost all the work here himself with Richard helping out
0:47:24 > 0:47:28at weekends, their £15,000 budget has been stretched.
0:47:31 > 0:47:34There were some low points where we really wondered
0:47:34 > 0:47:36what it was we were trying to do.
0:47:36 > 0:47:38Everything we touched crumbled.
0:47:38 > 0:47:40So this has been a big lesson for us.
0:47:40 > 0:47:43The plastering throughout the property
0:47:43 > 0:47:45we hadn't bargained on doing,
0:47:45 > 0:47:48repairing the flank wall, which was bowing outwards.
0:47:48 > 0:47:51All of the skirtings, all of the doors, there was a big problem
0:47:51 > 0:47:54with the bouncing floor in the back bedroom upstairs,
0:47:54 > 0:47:58that had to be stabilised and the floor to the old bathroom
0:47:58 > 0:48:00had to be completely renewed.
0:48:00 > 0:48:04Somehow you do just keep at it bit by bit
0:48:04 > 0:48:08and week to week and in time you get to the point we are now.
0:48:08 > 0:48:12Ten months on and after spending £85,000 buying this place,
0:48:12 > 0:48:18Richard and Martin have shelled out close to £20,000 so far
0:48:18 > 0:48:21to turn it back into a happy habitable home.
0:48:21 > 0:48:24They expect to spend a few thousand more yet.
0:48:24 > 0:48:28Taking their total just past the £105,000 mark.
0:48:28 > 0:48:30But they're not quite sure what they'll do next.
0:48:30 > 0:48:32We do need to make a decision
0:48:32 > 0:48:36if we're going to let the property or put it up for sale.
0:48:36 > 0:48:39If the valuations we get on the property are favourable,
0:48:39 > 0:48:42we will be trying to re-sell the property.
0:48:42 > 0:48:46As for letting, my day job is a senior housing officer in Hackney.
0:48:46 > 0:48:48I do tenancy management day in day out.
0:48:48 > 0:48:50Maybe I don't want to take that home with me
0:48:50 > 0:48:52and become a private landlord.
0:48:54 > 0:48:57Let's find out if creating that extra room
0:48:57 > 0:49:00will add enough value to make that decision for them.
0:49:04 > 0:49:08We asked two local estate agents to take a look at the property.
0:49:08 > 0:49:11What do they think now it's nearly complete?
0:49:14 > 0:49:16You walk in and expect something quite tiny.
0:49:16 > 0:49:21But when you're in here it's really very big and goes back a long way.
0:49:21 > 0:49:22So yes, it's a great house.
0:49:22 > 0:49:25Quality is very good in the kitchen and bathroom.
0:49:25 > 0:49:26I'm really impressed with it.
0:49:26 > 0:49:29So, what they've done by giving the bedroom back
0:49:29 > 0:49:32and dividing it off is much more sensible.
0:49:32 > 0:49:34I think the colour scheme is good,
0:49:34 > 0:49:37the quality of the fittings, the sanitary wear is excellent.
0:49:37 > 0:49:39That will be appreciated by buyers.
0:49:39 > 0:49:43If this was my property I would move in and make it a home.
0:49:43 > 0:49:45So it's a big hit with the estate agents,
0:49:45 > 0:49:48but moving in wasn't what Richard and Martin had in mind.
0:49:48 > 0:49:52What they want to know is how much money can they make from it.
0:49:52 > 0:49:58The rental valuation would be £595 per calendar month.
0:49:58 > 0:50:02The sort of rental we should achieve on this
0:50:02 > 0:50:07would be in region of £625-650 per calendar month.
0:50:07 > 0:50:09I think it's worth more than that.
0:50:09 > 0:50:12Even though that's the current,
0:50:12 > 0:50:13that's what it would go for.
0:50:13 > 0:50:15But we've done such a good job on it.
0:50:15 > 0:50:19I know, but it would be painful to let it go for that much I think.
0:50:19 > 0:50:22At the top end, £650 per calendar month,
0:50:22 > 0:50:27is an approximately 7% return on their £105,000 investment.
0:50:27 > 0:50:32That's not bad. If they can get a long-term rental.
0:50:32 > 0:50:34But they would much rather sell.
0:50:34 > 0:50:38The resale valuation would be £135,000.
0:50:38 > 0:50:44I think we should be able to achieve somewhere between 130 and 135,000.
0:50:44 > 0:50:49We may find that offers are going to come in at £125 - £130,000.
0:50:49 > 0:50:53- Yeah.- We've done a good job in a rubbish market.
0:50:53 > 0:50:57Yeah. I think we were being quite pessimistic, given the state
0:50:57 > 0:51:01of the housing market, to think it could go for that kind of value.
0:51:01 > 0:51:05We could turn around with a decent profit, given the state of things.
0:51:05 > 0:51:10If we can sell for 135 that would be a £30,000 profit.
0:51:14 > 0:51:19Well, Martin's right. They could make a £30,000 pre-tax profit.
0:51:19 > 0:51:23But only if they can sell quickly at the top valuation
0:51:23 > 0:51:27and if they keep the cost of finishing to an absolute minimum.
0:51:27 > 0:51:30Still, it's not such a bad result and it sound as though
0:51:30 > 0:51:31they've made up their minds.
0:51:31 > 0:51:33I think I would be tempted to sell.
0:51:33 > 0:51:36Kerching! Sell it. Move on.
0:51:36 > 0:51:40With this house to kick-start their property developing careers,
0:51:40 > 0:51:43it's time to get those motors running
0:51:43 > 0:51:47and head out on the highway in search of another auction purchase.
0:51:53 > 0:51:57Back in the Derby area of Chaddesden,
0:51:57 > 0:51:59an old garage and associated land
0:51:59 > 0:52:02was sold as a potential building plot.
0:52:02 > 0:52:05Vic and Poonam bought it for £35,000
0:52:05 > 0:52:09and it came with planning permission for a three-bedroomed house.
0:52:09 > 0:52:12There were some issues about whether there were detailed plans
0:52:12 > 0:52:15and Vic and Poonam lived one-and-a-half hours
0:52:15 > 0:52:17away from the plot in the Birmingham area.
0:52:17 > 0:52:21As if that wasn't enough there was a drain in the middle of the site,
0:52:21 > 0:52:23that was gonna be tricky to move.
0:52:23 > 0:52:24So, nearly one year on,
0:52:24 > 0:52:29have they overcome all the difficulties and built the house?
0:52:29 > 0:52:31Well, it doesn't look like it!
0:52:31 > 0:52:33So what's been going on?
0:52:33 > 0:52:38To build a new house, it's very hard to sell it at a good price.
0:52:38 > 0:52:41You can't sell it, the price is going down.
0:52:42 > 0:52:45Coming from Birmingham to build it here,
0:52:45 > 0:52:48so I don't think it would give me a good profit after that.
0:52:48 > 0:52:51Obviously, if I build the house
0:52:51 > 0:52:54I need someone here for security all the time.
0:52:54 > 0:52:58After that, all the calculations I thought it's not worth it.
0:52:58 > 0:52:59That's why I decided to sell it.
0:52:59 > 0:53:04So, with travel and building costs, plus concerns about the market,
0:53:04 > 0:53:08Vic decided to put it back in the auction room.
0:53:08 > 0:53:10He had paid £35,000 for the plot,
0:53:10 > 0:53:15and spent just over £2,000 on changing the planning permission,
0:53:15 > 0:53:19and demolishing the garages, so how much did he get?
0:53:21 > 0:53:23This time I sell my land
0:53:23 > 0:53:26and I did make a loss because of the current market.
0:53:26 > 0:53:32I did make loss, about £10,000 - 12,000 loss on that land.
0:53:32 > 0:53:37In fact, Vic sold the land for just £25,000 at auction.
0:53:37 > 0:53:41That £10,000 - £12,000 loss and the general property slowdown
0:53:41 > 0:53:45has caused Vic to change career paths totally.
0:53:45 > 0:53:48I've got a shop in Birmingham to buy gold and sell gold.
0:53:48 > 0:53:50That's what I do at the moment.
0:53:50 > 0:53:52# Gold... #
0:53:54 > 0:53:57So, Vic decided this site wasn't a gold mine
0:53:57 > 0:53:59and has now opted for the real thing.
0:53:59 > 0:54:02But should he have persisted with this venture
0:54:02 > 0:54:04and if so, could he have made decent money?
0:54:04 > 0:54:07What do two local property experts think?
0:54:31 > 0:54:34First impression with most plots is gosh, this is small,
0:54:34 > 0:54:36how are we going to get a house on it.
0:54:36 > 0:54:39But once thinking about it, it's possible to get
0:54:39 > 0:54:41a decent sized house with parking and garden.
0:54:41 > 0:54:44One thing Vic did achieve was getting the planning permission
0:54:44 > 0:54:47adjusted from a three bed-roomed house to a four-bed,
0:54:47 > 0:54:50as a possible means of increasing its end value.
0:54:50 > 0:54:52How much would that have helped?
0:54:52 > 0:54:55Well, you could get a four-bed on here.
0:54:55 > 0:54:58I would have thought probably 1,000 - 1,100 square foot
0:54:58 > 0:55:02which would sell for about 200, £195,000, something like that.
0:55:02 > 0:55:06Whereas a three-bed you would look at £160,000.
0:55:06 > 0:55:11So, even with a £100,000 build cost on a plot originally bought for
0:55:11 > 0:55:1535,000, an end value of 200,000 could mean a healthy profit.
0:55:15 > 0:55:19But the problem is that the house could have been six months
0:55:19 > 0:55:21to several years away from being built,
0:55:21 > 0:55:25so by the time it was completed the market might have dropped further.
0:55:25 > 0:55:28That was not a gamble Vic was prepared to take.
0:55:28 > 0:55:30Does the auctioneer who sold the land
0:55:30 > 0:55:34in the first place, think Vic made the right decision?
0:55:34 > 0:55:37I think it's been a victim of circumstances, unfortunately.
0:55:37 > 0:55:41Bought it at the wrong time, the height of the market.
0:55:41 > 0:55:42Build costs were going up.
0:55:42 > 0:55:45Values were coming down. You get squeezed in the middle.
0:55:45 > 0:55:48So, in one way you've got to cash it in and go, haven't you?
0:55:49 > 0:55:51So, Graham the auctioneer
0:55:51 > 0:55:54thinks Vic did make the right decision not to build,
0:55:54 > 0:55:58but he could have hung on to the plot for a while and land-banked it.
0:55:58 > 0:56:00Would that have been worth it?
0:56:00 > 0:56:04To land bank, it means you're dependant on the market picking up
0:56:04 > 0:56:06in the next two or three years maximum.
0:56:06 > 0:56:09I think on today's market that's a long-shot.
0:56:09 > 0:56:13So, this story really reflects the current market,
0:56:13 > 0:56:16with still relatively high build costs
0:56:16 > 0:56:20and falling house prices, new builds are having their margins squeezed.
0:56:20 > 0:56:24So, many developers like Vic are choosing not to build.
0:56:26 > 0:56:28# That's just the way it is... #
0:56:28 > 0:56:32But the new owner of this plot thinks things are now turning.
0:56:32 > 0:56:34He plans to build that four-bedroomed house
0:56:34 > 0:56:36that Vic got planning permission for.
0:56:36 > 0:56:39So maybe this rubble site will eventually be someone's new home.
0:56:44 > 0:56:46Well, it's goodbye from us and we hope you've enjoyed
0:56:46 > 0:56:49watching the auction room tales on today's show.
0:56:49 > 0:56:52- Join us next time for more Homes Under The Hammer.- Goodbye.- Goodbye.
0:57:02 > 0:57:05For more information about Homes Under The Hammer,
0:57:05 > 0:57:10including how the programme was made, visit the website at bbc.co.uk
0:57:10 > 0:57:12Subtitle by Red Bee Media Ltd
0:57:12 > 0:57:14E-mail subtitling@bbc.co.uk