0:00:02 > 0:00:06- Welcome to Homes Under The Hammer. - The UK is obsessed with property.
0:00:06 > 0:00:12- And nobody more so than Lucy and I. - It's a favourite dinner party topic and everybody always has an opinion.
0:00:12 > 0:00:17It's our opinion that there's no better way to buy your property than under the hammer.
0:00:42 > 0:00:46The auction catalogue can give you clues about a property,
0:00:46 > 0:00:52but it's not until you see inside that you can tell if it's a potential gold mine or a money pit.
0:00:52 > 0:00:57It's up to you to do your research and dig below the surface of your possible investment.
0:00:57 > 0:01:00Let's see what's on offer on today's show.
0:01:01 > 0:01:06'You could change the decoration in this Marlborough maisonette.'
0:01:06 > 0:01:10But that is much more serious. What's going on there?
0:01:10 > 0:01:14'In London, this first floor flat has really spooked me out.'
0:01:14 > 0:01:20Unless there's a ghost that's been taking showers here, I think there's been a leak.
0:01:20 > 0:01:27'And the kitchen and dodgy colour scheme in this Derby bungalow are the least of your worries.'
0:01:28 > 0:01:30Some remedial work required.
0:01:31 > 0:01:37'All of these properties went to auction and we'll find out who bought them and what they paid
0:01:37 > 0:01:40'when they went under the hammer.'
0:01:43 > 0:01:49I'm in Marlborough in Wiltshire on the old main road between Bath and London.
0:01:49 > 0:01:52It wasn't always as pretty as this.
0:01:52 > 0:01:56The whole place was virtually destroyed in the 1600s by a fire
0:01:56 > 0:02:00which led to an Act of Parliament banning thatched roofs.
0:02:00 > 0:02:05But when they rebuilt it, they created one of the widest high streets in the country,
0:02:05 > 0:02:09a perfect place for the market still held here twice a week.
0:02:09 > 0:02:12So what does the property market have on its stall?
0:02:12 > 0:02:18Marlborough is picturesque, but not too quaint and chocolate boxy.
0:02:18 > 0:02:22It's still a busy trading route as it has been over the centuries.
0:02:22 > 0:02:25And its history is never far from view.
0:02:25 > 0:02:29The property is just off the high street which is a good start.
0:02:29 > 0:02:33It's a maisonette over three floors and it's got four bedrooms.
0:02:33 > 0:02:39It was guided at £210,000 which for round here is sounding like a bit of a bargain.
0:02:39 > 0:02:42But there is a negative and you can see it.
0:02:42 > 0:02:45It's situated right above this Indian restaurant.
0:02:45 > 0:02:52You might like curry, but you get noise from the people visiting and also smells from the restaurant.
0:02:52 > 0:02:57The other thing is no parking. Still, maybe it's got good things going for it.
0:02:57 > 0:02:59The entrance is round the back.
0:02:59 > 0:03:03Down this alley and hello, the entrance is next to the church.
0:03:03 > 0:03:09At least the neighbours will be quiet, but it's not exactly an ideal start
0:03:09 > 0:03:13unless you're a bell-ringer with a love of spicy food.
0:03:13 > 0:03:18You've got a little entrance area down there, then up on to the first floor
0:03:18 > 0:03:22and the first of lots of little rooms - a toilet in one of those,
0:03:22 > 0:03:25then through into what feels like a reception area.
0:03:25 > 0:03:29That's because it was, until recently, a natural health centre.
0:03:29 > 0:03:34But it's just had change of use, so you've now got planning permission
0:03:34 > 0:03:39to convert this into a residential property, but there's work to be done.
0:03:39 > 0:03:44Thankfully, a lot of the character of the building still remains.
0:03:44 > 0:03:50Look at this room! Look at that ceiling! You've got a half-timbered look, but look at the bulge.
0:03:50 > 0:03:55Hopefully, that's just historic and it adds to the character. Fantastic fireplace.
0:03:55 > 0:03:59Couple of issues though, first of which, there isn't a kitchen.
0:03:59 > 0:04:03There's just a sink in the corner, but outside it's more serious.
0:04:03 > 0:04:08This is like a little courtyard area. It's the only outdoor space in the property.
0:04:08 > 0:04:14It's quite pretty. You're overlooking the church and the roofs of Marlborough, but look at this.
0:04:14 > 0:04:20It's the top end of the extractor fan from, I guess, the Indian restaurant downstairs.
0:04:20 > 0:04:25I would contact the council and the environmental health people just to say, "Is this OK?"
0:04:25 > 0:04:31And even ask the people in the restaurant if it can be moved because it's not good like that.
0:04:31 > 0:04:37It's not just lovely aromas coming from the kitchen. You can also hear the kitchen at work through it.
0:04:37 > 0:04:41There's also the constant whirr of a fan in the background,
0:04:41 > 0:04:47turning this little piece of outside space into a less than relaxing spot.
0:04:47 > 0:04:52However, on the plus side, the square footage here is tremendous.
0:04:52 > 0:04:58Next to the living room and that impressive fire, there are two more reception rooms on this floor,
0:04:58 > 0:05:02so there is plenty of space to put a kitchen.
0:05:02 > 0:05:06While some of the beams look to have been built in the '70s,
0:05:06 > 0:05:10there is plenty of evidence of the building's true age elsewhere.
0:05:10 > 0:05:15You also get great views on to Marlborough High Street and the church.
0:05:15 > 0:05:18Well, onwards and upwards... literally!
0:05:18 > 0:05:22Yet more rooms, although no bathrooms up here.
0:05:22 > 0:05:26We've got some kind of a bedroom, lots of storage space,
0:05:26 > 0:05:31but there's this feeling that the house has been done up in a hotch-potchy kind of way,
0:05:31 > 0:05:35especially when you come up here into the attic rooms.
0:05:35 > 0:05:41I don't know what's going on with these beams and some of these walls feel like stud partitions.
0:05:41 > 0:05:46I'd want to see what's behind there, but then it gets really weird cos look at this.
0:05:46 > 0:05:50This is the only way from one part of the building to the other
0:05:50 > 0:05:54unless you go downstairs through the living room. Very strange.
0:05:54 > 0:06:00I'd want to investigate that wall, maybe take bits of it out, reveal what's underneath there
0:06:00 > 0:06:05because it's a really characterful place. And another set of stairs down into the living room.
0:06:05 > 0:06:08Weird!
0:06:08 > 0:06:14If the strange layout doesn't make you feel disorientated, the decor in some rooms certainly will.
0:06:14 > 0:06:20If you're so inclined, you could do laps of the whole property round in a circle
0:06:20 > 0:06:23up one set of stairs and down the next.
0:06:23 > 0:06:27It will keep you fit, but it's not ideal if you want a family home
0:06:27 > 0:06:32which is a possibility for this maisonette as it has four good-sized bedrooms.
0:06:32 > 0:06:38But bear in mind this is Grade 2 listed which could restrict any alterations,
0:06:38 > 0:06:42so this could prove an expensive and challenging project.
0:06:43 > 0:06:47I invited a local estate agent along to get her opinion
0:06:47 > 0:06:52about the best refurbishment options for this unusual building.
0:06:52 > 0:06:55Well, I think the property has an awful lot of potential.
0:06:55 > 0:07:01It could be divided into flats or it could make one really good family home.
0:07:01 > 0:07:05Some negative points might be the factor that it's over a restaurant
0:07:05 > 0:07:09and obviously being in the market town, it has no parking.
0:07:09 > 0:07:13As the plumbing is only on one side of the property
0:07:13 > 0:07:17and none on the first floor, there is a lot to tackle here.
0:07:17 > 0:07:20It would be a really good idea to turn it into flats.
0:07:20 > 0:07:25There's a tremendous market for flats within the High Street of Marlborough.
0:07:25 > 0:07:29How much rental income could the flats achieve?
0:07:29 > 0:07:35If we were going to rent out the flats, I think a one-bed could achieve £500 to £550 per month
0:07:35 > 0:07:39or a two-bed at as much as 600 to 695 per calendar month.
0:07:40 > 0:07:44The maisonette went to auction guided at 210,000.
0:07:44 > 0:07:50How much could it be worth once renovated and converted into one large family home?
0:07:50 > 0:07:57This property could be worth, once it's been turned around and done up, 275,000.
0:07:58 > 0:08:02So, two clear options - conversion into flats to generate income
0:08:02 > 0:08:09or remove the stud walls and open the whole place up into a fabulous family home, but without a garden.
0:08:09 > 0:08:15So, a property that oozes character, a great location and an attractive guide price.
0:08:15 > 0:08:21Not without its downsides - no parking and no garden, and you've got that Indian restaurant.
0:08:21 > 0:08:25Still, let's find out who took it away at the auction.
0:08:25 > 0:08:30OK, No.10 is 47 Kingsbury Street, Marlborough.
0:08:30 > 0:08:35It's on the first and second floor. Lot of space, as you can see.
0:08:35 > 0:08:38Start me at the guide? 210, somebody? 200 then?
0:08:40 > 0:08:43£200,000. OK, we'll start there at 200.
0:08:43 > 0:08:47And 5? It's at 200. 205, somebody, please?
0:08:47 > 0:08:49At 200. 205. 210.
0:08:49 > 0:08:51215 may I say? At 210.
0:08:51 > 0:08:55215. And 20, if you will? At 215,000.
0:08:55 > 0:08:57220, is it?
0:08:57 > 0:09:02220 over the far side there. At 220 now. I'll take 5?
0:09:02 > 0:09:05Nearly there. At £220,000 on the wall there.
0:09:05 > 0:09:10Give me 5 or 2. Otherwise, it's £200,000 over there for the first time...
0:09:10 > 0:09:13£220,000 against you for the second time.
0:09:13 > 0:09:17And £220,000, third and last time. Are we done...?
0:09:17 > 0:09:21- Your number is...?- 3.- 3, sir. Thank you very much.
0:09:21 > 0:09:27'Richard made the winning bid of 220,000, but when I visited the property to find out more,
0:09:27 > 0:09:29'it was Wendy who I met.
0:09:29 > 0:09:34'She lives two doors away and is a psychotherapist and counsellor.
0:09:34 > 0:09:39'She'd been looking for somewhere local to buy. I met up with her to hear her plans.'
0:09:44 > 0:09:49- Wendy, congratulations.- Thank you. - You've got a very interesting property here.- It's great.
0:09:49 > 0:09:55- I didn't see you at the auction. - I was there, but I was standing away from Richard.
0:09:55 > 0:09:58- I got Richard to bid for me. - Who's Richard?
0:09:58 > 0:10:03Richard is a friend who came to see the property when I was first interested. He's a surveyor.
0:10:03 > 0:10:08He had a look round. Then I felt very nervous going into the auction
0:10:08 > 0:10:12and somebody said, "Why don't you get somebody to bid for you?"
0:10:12 > 0:10:16But also I had made an offer to the owners before that for 250.
0:10:16 > 0:10:22- Oh!- And I repeated that offer a couple of times and they kept saying no.- Ha!
0:10:22 > 0:10:28So I withdrew the offer a week before the auction and decided to get Richard to bid for me.
0:10:28 > 0:10:31It was just a tactical thing.
0:10:31 > 0:10:36- You must be thrilled to bits that you've saved £30,000. - I'm really pleased.
0:10:36 > 0:10:40'Wendy had come for a massage at the therapy centre
0:10:40 > 0:10:44'and that's when she fell in love with the property.
0:10:44 > 0:10:47'It was put up for sale in 2007 for £370,000
0:10:47 > 0:10:52'when there was a lot of interest, but no buyers.'
0:10:52 > 0:10:58Then it went to another agent. They brought it down to 225, hoping that people would be very interested.
0:10:58 > 0:11:02Apparently, there were lots and lots of viewings,
0:11:02 > 0:11:07but people were put off by the Indian restaurant underneath.
0:11:07 > 0:11:11- It's a problem. You've got a big vent outside your window.- Yeah.
0:11:11 > 0:11:14- Do you like curry? - I do, fortunately!
0:11:14 > 0:11:17Ask me in ten years' time. I might be sick of it!
0:11:17 > 0:11:23- But to have that extractor fan outside your window can't be... - I don't know what can be done.
0:11:23 > 0:11:27- I'll be shutting the windows a lot. - That's your little outdoor area.
0:11:27 > 0:11:32I'm going to screen it off at least, put a fence out there to make it look nicer.
0:11:32 > 0:11:36'I think Wendy needs to do a little more than put up some fencing.
0:11:36 > 0:11:43'I'd advise her to contact the restaurant and see if they can route the vent in a different direction,
0:11:43 > 0:11:47'then she could enjoy that bit of outside space.
0:11:47 > 0:11:52'Although she's got two girls of four and eight, she's not worried about the lack of garden
0:11:52 > 0:11:56'and has been living without a parking space for two years.'
0:11:56 > 0:12:02- It doesn't have various things like a kitchen.- A bathroom. - Small points(!)
0:12:02 > 0:12:08What are you going to do to change the house around and make it more of a family home?
0:12:08 > 0:12:12I'll turn this central room into a kitchen-cum-dining room.
0:12:12 > 0:12:15I love big kitchens and living in the kitchen.
0:12:15 > 0:12:19Then I'd like to turn those two rooms into a big living area.
0:12:19 > 0:12:23And I'm hoping to open up the fireplace on the other side.
0:12:23 > 0:12:29I've got to put two bathrooms upstairs, hopefully, so I have to work that one out with the plumbing.
0:12:29 > 0:12:35I'll keep the four bedrooms and make one of them smaller and put a bathroom in and an en-suite shower.
0:12:35 > 0:12:38I'll keep the two staircases.
0:12:38 > 0:12:43We're hoping there'll be some original oak timbers behind the partition walls.
0:12:43 > 0:12:49- Now obviously, it is listed.- Yes. - Grade 2 listed. That applies to the interior of the building as well.
0:12:49 > 0:12:55- What are you gonna do about getting all the plumbing permissions and approvals?- I'm not sure yet.
0:12:55 > 0:13:00It's got planning permission to have the conversion to residential and for alterations.
0:13:00 > 0:13:04I've got to look into the listed buildings consent.
0:13:04 > 0:13:10- What about timescales and budgets? - I've given myself six months, but I'm hoping to do it more quickly.
0:13:10 > 0:13:13And the budget for the work?
0:13:13 > 0:13:16Between 30,000 and 40,000 I think I've got.
0:13:16 > 0:13:19I'll probably budget for 30,000.
0:13:19 > 0:13:23But that 30,000 is what you might have had to pay extra to get it.
0:13:23 > 0:13:27I know. If I had bought it at 250 or even more,
0:13:27 > 0:13:31all I would have done is put a shower in probably and a cooker
0:13:31 > 0:13:34and lived like this!
0:13:34 > 0:13:38- Congratulations.- Thank you.- I hope it's a happy home for you.- Thanks.
0:13:41 > 0:13:45It just goes to show if it's meant to be, it's meant to be
0:13:45 > 0:13:48and for Wendy, she's got the place she really wanted.
0:13:48 > 0:13:55A few issues ahead - it's Grade 2 listed and moving the bathroom is gonna throw up some real issues.
0:13:55 > 0:13:59But you can find out how she gets on later in the show.
0:14:02 > 0:14:06For the next property under the hammer, we've come to South London.
0:14:06 > 0:14:09# It's a very special knowledge that you've got, my friend
0:14:09 > 0:14:14# You can walk around in New York while you sleep in Penge... #
0:14:14 > 0:14:19David Bowie once sang, "You can walk around in New York while you sleep in Penge."
0:14:19 > 0:14:22OK, point taken, it's hardly Manhattan,
0:14:22 > 0:14:26but you'd have to be a dreamer not to recognise its good points.
0:14:26 > 0:14:30By train, you can be in London Bridge in only 20 minutes.
0:14:30 > 0:14:36When the East London line extension opens, you'll be in the centre of town in the blink of an eye.
0:14:36 > 0:14:39With property prices much more reasonable than north of the river,
0:14:39 > 0:14:43who needs New York when you can afford to sleep in Penge?
0:14:43 > 0:14:47# You can walk around in New York while you sleep in Penge... #
0:14:47 > 0:14:53Penge is a real mixed bag. When fashionable in the Victorian era, grand villas were built here.
0:14:53 > 0:14:57Its reputation has rather fallen by the wayside in recent years,
0:14:57 > 0:15:00but that fortune could be on the way up again.
0:15:01 > 0:15:05So here's a question - what can you do with 55,000?
0:15:05 > 0:15:11That's a lot of money, so maybe a loft conversion, put down a healthy deposit on a new home.
0:15:11 > 0:15:15The more frivolous of you can think about a second-hand Rolls-Royce
0:15:15 > 0:15:18or an 18-carat gold and diamond necklace perhaps.
0:15:18 > 0:15:23Well, you can add to that a first floor, one-bedroom flat on Penge High Street.
0:15:23 > 0:15:26That sounds like a good deal to me.
0:15:27 > 0:15:31A one-bedroom flat 20 minutes from the centre of London
0:15:31 > 0:15:35and just steps from the train station in a period building?
0:15:35 > 0:15:37Am I dreaming again?
0:15:37 > 0:15:41OK, it is on a busy road and the exterior looks pretty worn,
0:15:41 > 0:15:47but the stairwell up to the flat seems in reasonable condition, so fingers crossed.
0:15:48 > 0:15:55First impressions? Well, for £55,000 I have to say I was expecting this flat to be in a sorry state.
0:15:55 > 0:15:58But it's surprisingly well maintained in here.
0:15:58 > 0:16:03I thought I'd be walking into an open-plan lounge, kitchen and diner,
0:16:03 > 0:16:08but there is a separate kitchen area with enough space for a table and chairs.
0:16:08 > 0:16:15It is dirty, tired and a bit grubby in here, but these units and worktop are in OK condition.
0:16:15 > 0:16:21With a bit of a clean and a spruce up, I think it could be a decent room. Not bad, good start.
0:16:21 > 0:16:28Apart from the kitchen, the hallway also leads to the bathroom, the bedroom and the living room.
0:16:28 > 0:16:32All are good-sized, despite slightly odd shapes.
0:16:32 > 0:16:38There's central heating and laminate flooring, but it does feel dirty and needs a good clean.
0:16:38 > 0:16:41It's not just the outside that's got me worried.
0:16:41 > 0:16:46This brown stain could be a heads-up to problems in the flat above.
0:16:48 > 0:16:52So in here is the bathroom. Again it's in decent condition.
0:16:52 > 0:16:56It's got a nice white suite, but the floor looks a bit wet.
0:16:56 > 0:16:59You can see water in the bath.
0:16:59 > 0:17:05Unless there's a ghost that's been taking showers in here, I think there's been a leak.
0:17:05 > 0:17:09The ceiling gives the game away. That's one problem that just can't wait.
0:17:09 > 0:17:15Don't be fooled by appearances. This flat could be hiding a whole lot of nasty secrets.
0:17:15 > 0:17:22I'd be straight up those stairs to the neighbours to find out where that leak's coming from.
0:17:22 > 0:17:25But remember that the guide price is £55,000.
0:17:25 > 0:17:29On the face of it, these issues don't seem too insurmountable.
0:17:29 > 0:17:34Before you get carried away with the apparent bargain we have here,
0:17:34 > 0:17:37it's important to keep your head and use your eyes.
0:17:37 > 0:17:42I've noticed this rather large crack at the front of the building.
0:17:42 > 0:17:47That suggests there's some movement here and it's impossible to tell how bad it is
0:17:47 > 0:17:51unless you get a surveyor along or contact the freeholder
0:17:51 > 0:17:54and find out who would be responsible for the repairs.
0:17:54 > 0:18:00If I was going to bid on this property, I'd get a survey done before I went any further with this.
0:18:00 > 0:18:06When you look closely, there are cracks aplenty all over the building
0:18:06 > 0:18:11and that metal tie needs investigating. Does this flat hide any more secrets?
0:18:12 > 0:18:17Let's see if a local estate agent has any further information.
0:18:17 > 0:18:23I keep coming back to that guide price of just £55,000 for this sizeable one-bedroom flat,
0:18:23 > 0:18:26but is it worth the risk?
0:18:26 > 0:18:31My first thoughts were, from the exterior, it looks like it's been neglected.
0:18:31 > 0:18:34The pointing is coming out around the windows.
0:18:34 > 0:18:38A lot of the bays are twisted on the windows as well.
0:18:38 > 0:18:44When a property is that bad, either the freeholder is absentee or he's neglecting his responsibilities.
0:18:44 > 0:18:48So they need to make sure their solicitor double-checks that.
0:18:48 > 0:18:52Whatever the reason, legal advice is a must for any purchaser
0:18:52 > 0:18:56to make sure they know their liability for any repairs.
0:18:56 > 0:19:00The flat here is a very good size, amazing size kitchen.
0:19:00 > 0:19:03Condition-wise, you could give it a lick of paint
0:19:03 > 0:19:08and it would be ready to go, which is surprising, considering the outside of it.
0:19:08 > 0:19:12There are water problems coming from the flat above,
0:19:12 > 0:19:16so I'd advise anybody who buys it to get that fixed as soon as possible.
0:19:16 > 0:19:20What about the potential to make money here?
0:19:20 > 0:19:26The flat was guided at £55,000, so how much would it generate as a re-sale or a rental?
0:19:26 > 0:19:31If work was done to the property, the outside bits and the freeholder issue sorted out,
0:19:31 > 0:19:35I believe the property would achieve £125,000 to £130,000.
0:19:35 > 0:19:41For rental, I believe the property would achieve £600 per calendar month.
0:19:41 > 0:19:46This little flat isn't a stunner, but its guide price certainly knocked me out.
0:19:46 > 0:19:52It needs work and the crack needs checking, but as a rental, this flat really adds up.
0:19:52 > 0:19:54Let's see who agreed at the auction.
0:19:54 > 0:19:58Flat 213, High Street, Penge, London SE20.
0:19:58 > 0:20:03Start me if you will at, one-bedroom flat in Penge, 45,000?
0:20:03 > 0:20:07That sounds reasonable. 45 anywhere for Lot 85?
0:20:07 > 0:20:11Where? 45 there, your bid. 46? 45 I have.
0:20:11 > 0:20:1346 anywhere? 46 there.
0:20:13 > 0:20:1547?
0:20:15 > 0:20:1847? 47. 48? 48.
0:20:18 > 0:20:2049? 49.
0:20:20 > 0:20:2350? All right, 51 I'll take. 52?
0:20:23 > 0:20:2652...?
0:20:26 > 0:20:3152 anywhere else? Your bid at 51, one-bedroom flat. 51,000 I have.
0:20:31 > 0:20:3552 anywhere else? With you at 51, a good bid. 52 anywhere? 52.
0:20:35 > 0:20:3753? 53. 54?
0:20:37 > 0:20:4154. 55...? No. 54 here. Funny place to stop. 54.
0:20:41 > 0:20:4655 anywhere? Nobody else? 54 standing, I am selling...
0:20:46 > 0:20:49First time at 54,000...
0:20:49 > 0:20:54Second time at 54,000, third and last time at £54,000...
0:20:54 > 0:20:55Are you all done?
0:20:56 > 0:20:59Sold for 54.
0:20:59 > 0:21:03'The winning bid of £54,000 was made by Veryl.
0:21:03 > 0:21:08'He bought this flat with his wife Phyllis to add to their portfolio of buy-to-lets,
0:21:08 > 0:21:12'but for this purchase, he was on his own.'
0:21:12 > 0:21:14- Congratulations.- Thank you.
0:21:14 > 0:21:19- £54,000 you paid for this at auction.- I certainly did.
0:21:19 > 0:21:23- Why did you want to buy this flat? - It was down to my wife really.
0:21:23 > 0:21:30She looked in the auction catalogue, she saw it. Then my wife said, "Have a look," so we went along.
0:21:30 > 0:21:36'Veryl followed her instructions, went to the auction and started to bid on this first-floor flat.'
0:21:37 > 0:21:43So, Veryl, there you were, bidding away, £54,000, hammer goes down...
0:21:43 > 0:21:47- How did you feel inside? - "Oh, my goodness, I've bought it!"
0:21:47 > 0:21:51And I haven't seen it, in or out, so I'm there thinking, "Well..."
0:21:51 > 0:21:55- Ooh!- Yes, indeed, "ooh"!
0:21:55 > 0:22:01We've just spent the better part of £60,000 and we haven't seen the flat and it's ours.
0:22:01 > 0:22:04For better or for worse, but it's ours.
0:22:04 > 0:22:10'So will Veryl's wedding vows on auction day lead to a long and happy relationship with this flat?
0:22:10 > 0:22:16'I want to know what he thinks about the structural issues and the cracks in the exterior.'
0:22:16 > 0:22:22- Did you think about having a structural survey done? Have you spoken to any surveyors?- Yes.
0:22:22 > 0:22:26- I've got a couple of structural engineers' reports.- What does it say?
0:22:26 > 0:22:30What you just said - it's got a crack on it and things like that,
0:22:30 > 0:22:34but to put it right should be reasonably straightforward.
0:22:34 > 0:22:37How much will it cost to put something like that right?
0:22:37 > 0:22:42I'd imagine it'll cost us in the region of maybe about £10,000.
0:22:42 > 0:22:46Are you solely responsible to repair that crack?
0:22:46 > 0:22:50No, in these cases, it's the freeholder who has to repair it.
0:22:50 > 0:22:55But we're thinking of selling it quickly, so maybe we'll do the work if we can get the permission.
0:22:55 > 0:22:59'I'm concerned that Veryl's costs may spiral.
0:22:59 > 0:23:05'That crack will put quite a dent in his £10,000 budget. He needs to be very careful.
0:23:05 > 0:23:11'He plans to spend another £5,000 sprucing the place up, bringing his total to 15,000.
0:23:11 > 0:23:17'That will give it a fresher feel without changing the kitchen and bathroom completely.
0:23:17 > 0:23:22'He's already spoken to the owners of the upstairs flat about fixing the bathroom leak.'
0:23:22 > 0:23:28- How did your wife feel when she came here for the first time?- She hasn't seen it.- But it was her idea?
0:23:28 > 0:23:34- Yeah, but she's overseas working. - She's relied on you to explain it all to her?- Yes.
0:23:34 > 0:23:39- I hope I've done her proud. - So tell me what you do for a living. What's your job?
0:23:39 > 0:23:42Well, for my sins, I work on the buses.
0:23:42 > 0:23:47- Do you? So you're a bus driver? - Hmm, yes, sort of.
0:23:47 > 0:23:49I'm a supervisor on the buses.
0:23:54 > 0:24:00'As a supervisor on the buses, Veryl must have seen plenty of lovely properties from the top deck.
0:24:00 > 0:24:07'So what was it about this flat that rang his bell? It can't have been the damp patches or that crack.'
0:24:09 > 0:24:12The good thing, I was chatting to the estate agent,
0:24:12 > 0:24:18is that it's around about £600 a month rental return which is really good rent for this.
0:24:18 > 0:24:22I think so, yes, but we're in two minds at the moment.
0:24:22 > 0:24:29If we can get it sold on quickly, we might do that, and if we can't, we'll consider renting.
0:24:29 > 0:24:32Why do you want to sell this on quickly?
0:24:32 > 0:24:39Well, taking into account what we'll spend to put it right, I think we can make a tidy little profit.
0:24:39 > 0:24:44So it all boils down to you, to get the flat ready, sell it, to get a profit?
0:24:44 > 0:24:49Most of it boils down to me, but we must never forget that it's her idea first
0:24:49 > 0:24:51and it's her inspiration.
0:24:51 > 0:24:57- So, four weeks and £15,000 later, is it going to look like a new flat? - We certainly hope so.- Oh, good.
0:24:57 > 0:25:03- Good luck.- Thank you.- It's been nice to meet you and I hope it all goes your way.- I hope so too.
0:25:03 > 0:25:05Well done, Veryl. Thank you.
0:25:09 > 0:25:15Veryl took a gamble, but it looks like it paid off big time, although that crack outside is a worry.
0:25:15 > 0:25:20In the current climate, he'd be wise to keep hold of this flat for a while,
0:25:20 > 0:25:23but will he sort out that leak and find a buyer?
0:25:23 > 0:25:25Join me later on to find out.
0:25:26 > 0:25:31'Coming up, in Derby, it's not all bad news for this kitchen.'
0:25:31 > 0:25:36It should be the focal point of the house and it won't be that hard to turn it into that.
0:25:36 > 0:25:41'Back in Penge, we finally meet our international property finder.'
0:25:41 > 0:25:46I spend half of my time now in Jamaica, so Veryl was sent to the auction on my behalf.
0:25:47 > 0:25:54'But first, we return to this hot property above a takeaway in beautiful Marlborough.'
0:25:58 > 0:26:04'Earlier in the programme in the historic Wiltshire town of Marlborough,
0:26:04 > 0:26:10'Wendy paid £220,000 for a Grade 2 listed building above an Indian restaurant.
0:26:10 > 0:26:15'The unusual property had been a therapy centre and living accommodation,
0:26:15 > 0:26:18'but it had consent for conversion into a maisonette.'
0:26:18 > 0:26:25- You've got a great big vent right outside your window.- I guess I'll be shutting the windows a lot!
0:26:28 > 0:26:33Like a takeaway order on a Friday night, we've had a bit of a wait.
0:26:33 > 0:26:35Ten months, in fact.
0:26:35 > 0:26:39But Wendy has now moved in and invited us back to see the result.
0:26:39 > 0:26:43Upstairs on the first floor where the massage rooms used to be,
0:26:43 > 0:26:46Wendy has created a small sitting room.
0:26:46 > 0:26:52And she has converted the space where the old office used to be into a self-contained bedsit.
0:26:52 > 0:26:57She hopes that will provide extra income to help with the mortgage.
0:26:57 > 0:27:02That large room that had a corner kitchenette has now been restored
0:27:02 > 0:27:08and now shows off the original oak beams and a superb kitchen has been put in.
0:27:10 > 0:27:17More original beams have been discovered behind the partitions in the two living rooms
0:27:17 > 0:27:20and reclaimed floorboards have been installed.
0:27:20 > 0:27:25This has been a truly superb restoration of a historic Grade 2 listed property.
0:27:29 > 0:27:33Before, when you walked in, it didn't feel like an old building,
0:27:33 > 0:27:37so I wanted to reveal as many old timbers as possible.
0:27:37 > 0:27:43When we took out the partitioning, we found this wall behind me here. That was really, really exciting.
0:27:44 > 0:27:50What a find! And Wendy made another important discovery at the back of this 17th century property.
0:27:50 > 0:27:53In here, it used to be a big waiting room.
0:27:53 > 0:27:57My idea was to turn it into a nice, open-plan kitchen.
0:27:57 > 0:28:01One of the exciting things was to find that fireplace,
0:28:01 > 0:28:04which is an original 1600 fireplace.
0:28:04 > 0:28:08Eventually, I'll have an open fire in that fireplace there.
0:28:08 > 0:28:11I'm really pleased with how the kitchen's turned out.
0:28:11 > 0:28:17No kidding! It overlooks the terrace where, for the time being, Wendy has put up a fence.
0:28:17 > 0:28:20But she's confident the restaurant will arrange a takeaway.
0:28:20 > 0:28:26The Indian restaurant have agreed to pay to move the flue away from my property, so that'll help.
0:28:26 > 0:28:33We'll put a board in front of it and I've got a screen. It's really nice and I don't mind the smell of curry.
0:28:33 > 0:28:37As you may remember, Wendy paid £220,000 for the property
0:28:37 > 0:28:44and her hunch that there could be original features hidden away proved right.
0:28:46 > 0:28:52Up on the top floor, there was another challenge if the two halves were to become one fabulous home.
0:28:52 > 0:28:59This is the top floor now and there was a wall across here, which supported the roof.
0:28:59 > 0:29:05The only access between this side and the other side was through a little tiny door,
0:29:05 > 0:29:11which obviously wasn't ideal. There was planning permission to cut through this and make a big corridor
0:29:11 > 0:29:18which turns it into a proper house. You've got three double bedrooms, a little sewing room,
0:29:18 > 0:29:24and then I've turned the fourth double bedroom into a bathroom, which is one of the best rooms.
0:29:24 > 0:29:31That's the sort of look you find in a luxury spa. It's Wendy's sanctuary to chill out.
0:29:31 > 0:29:37Surprisingly, with three double bedrooms, this top floor still feels really spacious.
0:29:37 > 0:29:42I had really good advice from a friend of a friend who's a builder.
0:29:42 > 0:29:48He helped me to get all the men together and he helped me with the design as well.
0:29:48 > 0:29:52There's a slightly Indian theme with the restaurant and my furniture.
0:29:52 > 0:29:56I went to Southall to get silk for my curtains,
0:29:56 > 0:29:59which is actually sari material.
0:29:59 > 0:30:05Well, a good tip and there are plenty of other places where you could get such wonderful fabrics,
0:30:05 > 0:30:10but how much has Wendy spent on this whole refurbishment?
0:30:11 > 0:30:17My original budget was about 30-40. I thought that would be enough because I was a bit naive.
0:30:17 > 0:30:23I probably ended up spending up to 70. That included some things like the cooker and everything, really.
0:30:23 > 0:30:27Time to find out how two local property experts
0:30:27 > 0:30:30value this fabulous conversion.
0:30:30 > 0:30:35It's simply stunning. It is a complete transformation
0:30:35 > 0:30:39from what the property was before. The property was grim, tired,
0:30:39 > 0:30:45and needed a lot of work doing and a bit of imagination. Wendy's brought that.
0:30:45 > 0:30:49When you walk through into the kitchen and the drawing room,
0:30:49 > 0:30:52the character, which was hidden before,
0:30:52 > 0:30:59suddenly you walk in to beautiful stripped floors, exposed beams, high ceilings, which is unusual.
0:30:59 > 0:31:07- It's a real gem.- I seem to remember before we were ducking under doors, crawling through. It now fits.
0:31:07 > 0:31:13- But what about the location? - I think the fact that there is a restaurant under the property,
0:31:13 > 0:31:17obviously some buyers will see that as a negative.
0:31:17 > 0:31:23The location is the high street, albeit a few yards from it. That is a very desirable location.
0:31:23 > 0:31:28When property prices do recover, that's extremely desirable.
0:31:28 > 0:31:34I think the room that has been converted into a bedsit is a great idea.
0:31:34 > 0:31:40It would be hard to find a use for it in the main building, so she's made the right choice.
0:31:40 > 0:31:45It's the only part Wendy might consider renting. This is her home.
0:31:46 > 0:31:52She paid £220,000 at the auction and her budget has doubled to £70,000,
0:31:52 > 0:31:59but exposing those hidden timbers and transforming those two rooms has certainly been money well spent.
0:32:00 > 0:32:06In its current state today, I would have to be relatively conservative and say
0:32:06 > 0:32:12it's approaching £300,000. If Wendy had to disappear off to the Seychelles tomorrow,
0:32:12 > 0:32:14I'd put it on at 295.
0:32:14 > 0:32:21I think in today's market, we'd be looking at £285,000-£295,000. That would be sensible.
0:32:21 > 0:32:27I thought maybe the 300 mark. I bought at 220, I spent about 70 on it at the most,
0:32:27 > 0:32:33so I haven't lost any money. The market's changed since I bought it,
0:32:33 > 0:32:37and things will pick up, so that's OK, I think.
0:32:37 > 0:32:44You've got to admire Wendy's vision on this property because she looked beyond the location.
0:32:44 > 0:32:51It didn't worry her that it was above a restaurant. She hoped it was special and she was proved right.
0:32:51 > 0:32:57- So would she do it again?- I have actually quite enjoyed doing this project. It's been very exciting.
0:32:57 > 0:33:01It's been fantastic for me and the girls because of the space.
0:33:01 > 0:33:04Would I do it again?
0:33:04 > 0:33:10Mmm...not in the next 10 years! I don't think. It's a lot of work, but it's been worth it.
0:33:12 > 0:33:20In 1977, Derby was finally granted city status by the Queen to mark her Silver Jubilee.
0:33:20 > 0:33:27Even though a cathedral had stood tall and visible here for hundreds of years,
0:33:27 > 0:33:31Derby had disproved the usual rule that a cathedral marked a city,
0:33:31 > 0:33:38but you do get a wonderful view of local properties from the spire, which is just as well.
0:33:38 > 0:33:42You'd have difficulty seeing this property from the next street!
0:33:42 > 0:33:48It's a bungalow, but what could make you look up is the guide price - just £60,000 it was.
0:33:48 > 0:33:54From the outside, it doesn't look too bad, although the garden is a bit of a mess.
0:33:54 > 0:33:56I think we need to investigate more.
0:33:56 > 0:34:02'Bungalows may not be everyone's first choice, but they do appeal to a niche market.
0:34:02 > 0:34:08'People are often prepared to pay for one in good condition, but this one isn't.'
0:34:08 > 0:34:12It's tired and dated, as I might have guessed.
0:34:12 > 0:34:17Fairly standard layout - one large area here and all the rooms off it.
0:34:17 > 0:34:22Bedroom there, not a bad size. Bedroom there. Some signs of damp.
0:34:22 > 0:34:26Very typical for this age of bungalow, for sure.
0:34:26 > 0:34:33Kitchen there and then the bathroom. Well, very dated and tired. You'd want to spend some money on that.
0:34:33 > 0:34:40Through into the main living room. Gas fire, nice bay-fronted window, which is good to see.
0:34:40 > 0:34:42But THAT is not good to see.
0:34:42 > 0:34:46Look at the floor. Not in a very good state at all.
0:34:46 > 0:34:48Blimey!
0:34:48 > 0:34:52Yep, OK. Some remedial work required.
0:34:52 > 0:34:58'So far, not so good. The renovation budget for this is mounting up
0:34:58 > 0:35:00'and I've only just started.'
0:35:00 > 0:35:07Once you've sorted out the rotting floorboards and the damp, you can turn your attention to the kitchen.
0:35:07 > 0:35:13It really is in a right old state. All you've got, basically, is this drainer and units.
0:35:13 > 0:35:17It should be the focal point of the house. You could turn it into that.
0:35:17 > 0:35:23While you're doing that, it doesn't have central heating, so get a combination boiler in.
0:35:23 > 0:35:29Then move on to remodelling. Take out this wall, even extend out into the rear of the property
0:35:29 > 0:35:34to create a nice living space. That would revolutionise this house.
0:35:34 > 0:35:41'For an ambitious developer, there's always the loft space for a dormer bungalow conversion.'
0:35:41 > 0:35:45There's something you don't expect to see in Derby - a grapevine.
0:35:45 > 0:35:50Whether or not these'll ripen, I'm not sure. But a great space.
0:35:50 > 0:35:56Not to sure what's in here. I think it's a downstairs loo. There's another outbuilding,
0:35:56 > 0:36:03then something that's really lovely. The garden stretches 50 or 60 feet, but it needs sorting out.
0:36:03 > 0:36:06It's a real added bonus.
0:36:06 > 0:36:12The bungalow went to auction at a guide price of £60,000, which isn't much for the size of the plot.
0:36:12 > 0:36:20I asked a local estate agent to have a look. Where would be the best place to start?
0:36:20 > 0:36:26'The first thing is to get the basics right. A timber and damp expert would need to look at it'
0:36:26 > 0:36:30to make sure everything's fine or what work is required.
0:36:30 > 0:36:33There's no point in putting
0:36:33 > 0:36:39new walls, new carpets, new double glazing in if that isn't done properly.
0:36:39 > 0:36:46- The new clients would have to pull it all out again.- After renovation, how much could it go for
0:36:46 > 0:36:51- in today's market?- I believe, if all of those jobs were done,
0:36:51 > 0:36:55the timber and damp, kitchen, bathroom,
0:36:55 > 0:37:01- it could be in the region of £100,000.- That's £40,000 above the guide price.
0:37:01 > 0:37:08- What about the rental potential? - It's quite a good rental property once it's in a decent condition.
0:37:08 > 0:37:11I'd imagine it at £550 per month.
0:37:11 > 0:37:17Before either of those two options can be considered, there are some big issues to investigate.
0:37:17 > 0:37:23Well, a bit of work required to sort this place out and it would benefit from internal modifications,
0:37:23 > 0:37:29but, in general, it's in good condition and bungalows are perennially popular.
0:37:29 > 0:37:32Let's see who was interested in it.
0:37:32 > 0:37:38Lot number one is a two-bedroom, semi-detached bungalow
0:37:38 > 0:37:42in a residential area. Needs upgrading and modernisation.
0:37:42 > 0:37:48Where do you want to be on this one? Our guide price is £60,000, which is extremely realistic.
0:37:48 > 0:37:52£60,000 to start? 60? 55,000?
0:37:52 > 0:37:58£50,000? 50 is bid here. Thank you. £50,000, our opening bid.
0:37:58 > 0:38:0151 is bid. Thank you. At £51,000.
0:38:01 > 0:38:0452. At 52. 53?
0:38:04 > 0:38:08£53,000. At £53,000. 54?
0:38:08 > 0:38:1254 is bid. At 54,000. 55?
0:38:12 > 0:38:16£55,000. £55,000...
0:38:16 > 0:38:2156 is bid. At £56,000. At £56,000 from this side.
0:38:21 > 0:38:2757 is bid here. New bidder. 57. 58. 58,000. 59. At 59.
0:38:27 > 0:38:32At £60,000. At £60,000. 61? 61 is bid.
0:38:32 > 0:38:35At £61,000. 62.
0:38:35 > 0:38:41At 62. 63. 63,000. It's in the market, no mistakes. 63,000 is bid.
0:38:41 > 0:38:4764? I'll take a half if it will help. 62 and a half? 63 and a half. 64 behind you.
0:38:47 > 0:38:5264 and a half. 65? 65 is bid. At 65.
0:38:52 > 0:38:58Are you sure? At £65,000 against you. Once, twice, third time.
0:38:58 > 0:39:05Any higher bid? We're selling at £65,000. Sold at 65,000. Thank you.
0:39:05 > 0:39:12'There was no hanging around in the auction room as Andy bagged it for £65,000.
0:39:12 > 0:39:19'I met up with him and his wife Lisa at the bungalow, which appears to have been an impulse purchase.'
0:39:19 > 0:39:24- Andy, Lisa, congratulations. - Thank you.- Nice to meet you both.
0:39:24 > 0:39:30- What did you think he was going to do?- Er, go to the auctions just to have a look.
0:39:30 > 0:39:34- And he was looking at a shop, weren't you?- Yeah.
0:39:34 > 0:39:39And then he says, "I bought a bungalow." As you do, you know.
0:39:39 > 0:39:46- And that was it. - And what did you say?- Oh! I went, "Right, OK..." That was it.
0:39:46 > 0:39:51- I'm used to him doing things like that.- I've got an eye for a bargain.
0:39:51 > 0:39:56- Are you both in the property world? - No. I'm a car dealer.- Right. - I do a lot of auctions
0:39:56 > 0:40:00- and turn up with all sorts of things. - What's the most bizarre thing?
0:40:00 > 0:40:04- Probably the boat.- Probably, yeah. - What kind of a boat?
0:40:04 > 0:40:09- A cabin cruiser.- Yeah.- When you live in the Midlands, it's what you need!
0:40:09 > 0:40:15- I think we went out in it once. - Not renowned for its coastline!
0:40:15 > 0:40:17Couldn't be further from the sea!
0:40:17 > 0:40:23'So car dealer Andy bought this dilapidated bungalow on a whim.
0:40:23 > 0:40:27'He hadn't seen it and took a real gamble.'
0:40:27 > 0:40:33- So, buying in the way you did probably means you did 10 seconds of preparation?- Yes.- Right.
0:40:33 > 0:40:39- So the legal pack, forget that. - Oh, yeah.- Visiting the property? Forget that, yeah.
0:40:39 > 0:40:44- Does that seem slightly foolhardy? - Not really. I mean, I'm...
0:40:44 > 0:40:49I'm not in the dark with it. I have had property before.
0:40:49 > 0:40:53Em...and I sort of know what to expect, really.
0:40:53 > 0:40:59As long as it were freehold and vacant, which I knew, that was OK for me, really.
0:40:59 > 0:41:05- OK. So what did you think when you saw it?- Well, obviously, it needed a lot of work.
0:41:05 > 0:41:09- You weren't impressed.- No. - You're being very diplomatic!
0:41:09 > 0:41:14Yeah, with projects like this, I don't mind doing things,
0:41:14 > 0:41:19- but to get me to do anything at home is different.- What do you plan?
0:41:19 > 0:41:24New kitchen, new bathroom, damp proof, new windows,
0:41:24 > 0:41:27doors, central heating,
0:41:27 > 0:41:32decoration, new back garden. Pretty much everything.
0:41:32 > 0:41:39- Have you got a lot of experience? - Every house I've owned has needed work. I've done most of it myself.
0:41:39 > 0:41:42- So nothing really daunts me.- Right.
0:41:42 > 0:41:46- Who's going to do the work? - I thought you...- No.- I think me.
0:41:47 > 0:41:51- Just you?- Just me. Hired help as and when required.
0:41:51 > 0:41:56Plumbers to put the central heating in, but I'll do most of it.
0:41:56 > 0:42:01- It's not a small project, is it? - Not so small as I thought it was.
0:42:01 > 0:42:09- But I've got plenty of apples and pears.- And grapes to drown your sorrows. Make some wine.- Yeah, yeah.
0:42:09 > 0:42:16'Let's hope they don't turn out to be of the sour variety. They'll want a drink when this is finished.
0:42:16 > 0:42:19'That's if there's any money left.'
0:42:21 > 0:42:25I'm hoping to do it for about 10 to 12.
0:42:25 > 0:42:29- Pretty tight for what you've got to do there.- Yes.
0:42:29 > 0:42:35- And how long?- I would love to do it in three months, but it'll probably be nearer to six.
0:42:35 > 0:42:39Cos when are you doing it? Is it evenings and weekends?
0:42:39 > 0:42:47I will carry on my main job, but I've got somebody who works for me, so I will spend some days here.
0:42:47 > 0:42:54- It's going to take a while! It's going to take a while. - How do you feel now?- Happy.
0:42:54 > 0:43:00- Excited, waiting to get stuck in. - And, Lisa, how do you feel at this point?
0:43:00 > 0:43:05Yeah, excited about it. Seeing it as the work progresses,
0:43:05 > 0:43:13- seeing how it's gone.- You've lived through it with our house.- Yeah. - We had a major project.
0:43:13 > 0:43:16There's nothing that's not been renewed there. Only took 10 years.
0:43:16 > 0:43:23'He hasn't got that luxury of time, but judging by some of the rooms, I think he might need it!'
0:43:23 > 0:43:30Oh, boy, Andy and Lisa breaking all the rules in the book for buying property at auction.
0:43:30 > 0:43:35I highly recommend you do not follow their example.
0:43:35 > 0:43:40However, they have quite a decent property. It might turn out OK.
0:43:40 > 0:43:44But it could have gone horribly wrong and, in fact, it still might.
0:43:44 > 0:43:48Join us later in the show to find out how they get on.
0:43:51 > 0:43:56So time to return to our properties and uncover the truth.
0:43:56 > 0:44:00- Are they a triumph of engineering or a house of cards?- Let's find out.
0:44:00 > 0:44:07We're back in South London in Penge where Veryl, a supervisor on the buses,
0:44:07 > 0:44:12paid £54,000 for this first-floor flat.
0:44:12 > 0:44:17It's got a nice white suite, but the floor looks a little bit wet.
0:44:17 > 0:44:22'Water was leaking into it from the flat above
0:44:22 > 0:44:24'and there was a nasty crack.
0:44:24 > 0:44:29'It was his wife Phyllis' idea to add the flat to their portfolio,
0:44:29 > 0:44:35'but she was out of the country at the time, as she now explains three months later.'
0:44:35 > 0:44:42Actually, I spend half of my time now in Jamaica and I look on the internet from there.
0:44:42 > 0:44:50Veryl was here in London and I contacted him by email and he went to the auction for me.
0:44:50 > 0:44:57'Now this globe-trotting couple have swapped around again. Veryl is out of the country.
0:44:57 > 0:45:02'They both plan to emigrate to Panama in two weeks.
0:45:09 > 0:45:14'So this and the other properties in their portfolio will be managed via the internet,
0:45:14 > 0:45:21'which is how Phyllis found this flat. So what had attracted her to this auction lot?'
0:45:22 > 0:45:27The flat was described as a one-bedroom flat.
0:45:27 > 0:45:31It didn't have much detail about what needed to be done,
0:45:31 > 0:45:38but I figured at that price, if we could get it near the reserve, we could do whatever needed doing.
0:45:39 > 0:45:44'The first job Veryl had wanted to tackle was repairing the crack.
0:45:44 > 0:45:48'But wasn't that down to the freeholder?'
0:45:48 > 0:45:55Yeah, I understand that the lawyer did contact the freeholder to explain we were doing that work.
0:45:55 > 0:46:01The roofer that we always use did the repointing. And the painting work was done by Veryl.
0:46:01 > 0:46:05'That outside work appears purely cosmetic to me,
0:46:05 > 0:46:11'but at least inside the stains on the bedroom ceiling have been painted over.'
0:46:11 > 0:46:16One benefit of this property is that we also got all the furnishing.
0:46:16 > 0:46:23So in the bedrooms we got the bed, the wardrobe, a chest of drawers and bedside cabinet.
0:46:23 > 0:46:28In the living room, we got the sofa. And we got all the white goods.
0:46:28 > 0:46:33'For any buy-to-let investor, having furniture is a bonus.
0:46:33 > 0:46:38'Veryl has been busy with a paintbrush, but what's happened to the leak?'
0:46:38 > 0:46:42Veryl has been upstairs and spoken to the landlord
0:46:42 > 0:46:46and we thought it had been fixed, so we decorated the bathroom.
0:46:46 > 0:46:48Now the problem has reoccurred.
0:46:48 > 0:46:55'Oh, no! So has the budget sprung a leak as well for this £54,000 investment?'
0:46:55 > 0:47:01In terms of budget, we didn't really have one. I have purchased the property
0:47:01 > 0:47:08and didn't have any money left over for a budget, so we spent £350 on the outside
0:47:08 > 0:47:11and £100 on the inside.
0:47:11 > 0:47:15'What's the plan for the flat now? Hold on to it or sell it?'
0:47:15 > 0:47:21Initially, I think Veryl wanted us to put the property straight back on the market and sell it
0:47:21 > 0:47:25because we could have, in his view, realised a profit straight away.
0:47:25 > 0:47:31My view is we need to look at the longer term view, so we're going to rent the property
0:47:31 > 0:47:33and keep it for two or three years.
0:47:33 > 0:47:36Time to ask two local estate agents
0:47:36 > 0:47:41what they make of Veryl's quick makeover to this first-floor flat.
0:47:41 > 0:47:46First impressions, as I came in, everything seemed rather messy.
0:47:46 > 0:47:49One wonders if cleaners are employed.
0:47:49 > 0:47:53The stairs are fairly narrow, then there's the flat.
0:47:53 > 0:47:57The level of finish, at first inspection, looks fantastic.
0:47:57 > 0:48:01Upon closer look, it's literally a lick of paint and a clean.
0:48:01 > 0:48:05The level of finish is rather basic.
0:48:05 > 0:48:09Ideal for maybe letting because you want to keep costs down,
0:48:09 > 0:48:15but from the point of view of resale, I'd expect a much higher finish.
0:48:15 > 0:48:21There's still the stain, so there's an ongoing problem. That's an issue for a tenant or a buyer.
0:48:21 > 0:48:28I noticed some repairs outside which seemed to be done fairly... in an amateurish way.
0:48:28 > 0:48:34It's been done, but not to a fantastic level or by a professional pointer.
0:48:34 > 0:48:38Someone's just filled the holes and that's it!
0:48:38 > 0:48:43'So Veryl took his wife's advice, paid £54,000
0:48:43 > 0:48:49'and bought this flat. He's given it a speedy facelift and is now enjoying the sunshine.
0:48:49 > 0:48:53'I wonder what he hopes the value will be. Let's find out the answer.'
0:48:53 > 0:48:58I think in order to achieve a sale on this type of property,
0:48:58 > 0:49:03I'd be looking to put it on the market at £80,000.
0:49:03 > 0:49:11This property, in its current state, resale value with its location, I'd say £120,000-£130,000.
0:49:11 > 0:49:16Wow! OK. That's good cos that's around £100,000, which was where I figured it.
0:49:16 > 0:49:22'But the plan isn't to sell. Remember, Veryl and Phyllis are emigrating to Panama
0:49:22 > 0:49:29'and the property is to generate income for them. They've already got tenants.
0:49:29 > 0:49:34- 'How much should they be charging?' - In terms of rent for the property,
0:49:34 > 0:49:37I believe they'd achieve £600-£650 per calendar month.
0:49:37 > 0:49:41The rental market for this sort of property is good.
0:49:41 > 0:49:45I'd anticipate a rental of £650-£700 per calendar month.
0:49:45 > 0:49:52That's fine. We've actually managed to achieve £700. I think that's because this is on a high street,
0:49:52 > 0:50:00right next to the station and there are lots of buses and shops. That's why we get the £700 mark.
0:50:00 > 0:50:05'Yes, that's a good return, but remember Veryl bought the flat on Phyllis' recommendation
0:50:05 > 0:50:12'and was worried if she'd approve of his refurbishment work. So what's her verdict?'
0:50:12 > 0:50:19This property is fantastic. I'm pleased with the space and size and location. Veryl's done us proud!
0:50:22 > 0:50:27'Earlier in the programme, this bungalow in Derby looked ripe for demolition.'
0:50:27 > 0:50:32Look at the floor. Not in a very good state at all.
0:50:32 > 0:50:38'But that didn't put Andy off because he'd never seen the property before he bought it
0:50:38 > 0:50:40'on a whim for £65,000.
0:50:40 > 0:50:43'He'd actually gone to the auction to buy a shop!
0:50:43 > 0:50:49'When his wife, Lisa, saw the state of the place, she knew she'd heard it all before.'
0:50:52 > 0:50:58- You lived through it with our house. - Yeah.- We had a major project. There's nothing not been renewed.
0:50:58 > 0:51:03- It only took 10 years. - 'Well, we're not waiting that long.
0:51:03 > 0:51:09'We've given Andy seven months before coming back to check on his progress.
0:51:09 > 0:51:15'Now that the overgrown back garden has been cleared, the last vintage from this chateau has been drunk.
0:51:15 > 0:51:22'A shame, as Andy really deserves a toast to celebrate the fabulous transformation he's achieved.
0:51:26 > 0:51:30'The bay-fronted living room and the bedrooms all look superb.
0:51:30 > 0:51:35'And that horrid old kitchen is now unrecognisable.
0:51:39 > 0:51:46'Andy lives some distance away and has had to split his time between his car business and this.'
0:51:46 > 0:51:51I got builders in to do most of the big jobs.
0:51:51 > 0:51:56I did some work myself, removing the chimney breast and some walls.
0:51:59 > 0:52:01And tradesmen for all the other work.
0:52:01 > 0:52:06'It was in a much worse state than Andy had initially thought,
0:52:06 > 0:52:08'needing a full-scale overhaul.'
0:52:09 > 0:52:15First of all, we took the floors out, took a couple of walls out,
0:52:15 > 0:52:22skylights, central heating and then, obviously, new kitchen, tiling.
0:52:22 > 0:52:26We also removed a chimney which wasn't being used.
0:52:26 > 0:52:28Pretty much everything, really.
0:52:28 > 0:52:35'Now you may remember Andy has a reputation for coming back from auctions with unusual items.
0:52:35 > 0:52:42'He once went for a car and came back with a boat, so I suppose this wasn't too unusual.
0:52:42 > 0:52:47'But what does his wife, Lisa, think of the place now?'
0:52:47 > 0:52:53Oh, it's fantastic compared to what it was. I walked in and thought, "Oh, my God."
0:52:53 > 0:52:56Where do you start? But he's done a really good job.
0:52:56 > 0:53:03Lisa was not really involved. She's happy to go along with whatever I decide.
0:53:03 > 0:53:06And hopefully she's happy with it.
0:53:06 > 0:53:10Everything's done the way, really, I'd kind of do it.
0:53:10 > 0:53:16Probably a few little tweaks that I'd do differently, but it's lovely.
0:53:16 > 0:53:20What we've done in this room is open up the fireplace.
0:53:20 > 0:53:24We had to rip the old flooring out. It was absolutely rotten.
0:53:24 > 0:53:32Originally, we thought it was just damp rot, but when we actually investigated, it was dry rot.
0:53:32 > 0:53:35So we had to treat everything.
0:53:35 > 0:53:38And then replace everything as brand new.
0:53:38 > 0:53:43'Sounds expensive. What impact did that have on Andy's budget?'
0:53:43 > 0:53:47Budget-wise, originally, we budgeted for £10,000-£12,000.
0:53:48 > 0:53:50We've doubled that.
0:53:50 > 0:53:55Obviously a lot, lot more work than I originally thought.
0:53:55 > 0:54:00And I also decided to do it to a much better standard.
0:54:00 > 0:54:07'I'm concerned that Andy's gone for too high a spec in the finish. I don't think that's necessary
0:54:07 > 0:54:10'if his plan's to look for tenants.'
0:54:10 > 0:54:16Originally, I wanted to rent it, but I would possibly look at selling it at this moment in time.
0:54:16 > 0:54:20We'll see how it goes.
0:54:20 > 0:54:24Let's see if two local property experts can help Andy decide.
0:54:24 > 0:54:29I think, overall, they've made a really good job of the property.
0:54:29 > 0:54:31The kitchen and the bathroom
0:54:31 > 0:54:36are really good. Work in progress, but really good.
0:54:36 > 0:54:41They've done a very good job. Very nice refurb.
0:54:41 > 0:54:46Yes, it's ongoing work in progress, but it'll make a very nice property.
0:54:46 > 0:54:53Clearly, knocking the room through to the kitchen diner with the velux windows is a huge improvement.
0:54:53 > 0:54:58- The bathroom's really nice.- 'I do like the kitchen with the skylight
0:54:58 > 0:55:04'where they've knocked through to extend the kitchen, with integrated appliances.
0:55:04 > 0:55:06'Yes, I like that.'
0:55:06 > 0:55:13So what's the rental potential here for this bungalow? How much income could Andy generate?
0:55:13 > 0:55:21Rental of bungalows is difficult. Nevertheless, I'd market it in the region of £425 per calendar month.
0:55:21 > 0:55:26'The rental market is OK in this area at the moment.'
0:55:26 > 0:55:29It would be £425 per calendar month.
0:55:29 > 0:55:32Em, a little bit less than I thought.
0:55:33 > 0:55:38I've actually had people turn up at the door and offer more than that.
0:55:39 > 0:55:46'Andy paid £65,000 at auction for the bungalow and his budget has doubled to £24,000.
0:55:46 > 0:55:55'That makes a total outlay of £89,000, but how much is it now worth if he was to try to sell it?'
0:55:55 > 0:56:00If I was marketing it at the moment, I would put it at £99,950.
0:56:00 > 0:56:04If I was to place the property on the market, it would be £95,000.
0:56:04 > 0:56:12Have those figures helped Andy make his decision? It's only a gross profit of £6,000-£10,000
0:56:12 > 0:56:14for seven months' work.
0:56:14 > 0:56:19Em, again probably slightly less than I would have hoped.
0:56:21 > 0:56:28- But it's not too bad. I would certainly say that's made my mind up to sell it.- Sell it.- Yeah.
0:56:28 > 0:56:33Andy bought this property without seeing it first - never a good idea.
0:56:33 > 0:56:40Although he's done a fabulous refurbishment, remember his budget has doubled.
0:56:40 > 0:56:47It has been a learning curve. I would say if I did it again we could probably do it for less
0:56:47 > 0:56:51and a little bit more profit, hopefully.
0:56:53 > 0:57:01- Well, that's it for today's show. - Join us next time for more thrills and spills.- See you then!- Goodbye!
0:57:12 > 0:57:17Subtitles by Subtext for Red Bee Media Ltd - 2009
0:57:17 > 0:57:20Email subtitling@bbc.co.uk