0:00:02 > 0:00:04Hello. From first time buyers to property veterans,
0:00:04 > 0:00:07all sorts of people buy property at auction.
0:00:07 > 0:00:09No previous experience is required.
0:00:09 > 0:00:13The only necessity is you do have the finance to buy what you bid for.
0:00:13 > 0:00:17For sure. Then you can get down to your auction rooms and bag yourself a bargain.
0:00:43 > 0:00:46The important point to remember is that when you buy at auction
0:00:46 > 0:00:50and you win your bid, you have exchanged contracts.
0:00:50 > 0:00:53That's right. It's vital to know what you're letting yourself in for
0:00:53 > 0:00:55and make sure you've got finance in place.
0:00:55 > 0:01:00So, did today's winners find themselves well prepared or ill equipped?
0:01:01 > 0:01:05In Derby, I feared the worst when I finally got into this bungalow.
0:01:05 > 0:01:11Is it going to smell, is it going to be damp, is it going to be water dripping through the ceilings?
0:01:11 > 0:01:14It's a London property that dates back to Victorian times.
0:01:14 > 0:01:21I mean, it really is such a delight to come into a house as untouched as this.
0:01:21 > 0:01:26And exploring this South Wales terrace could take longer than expected.
0:01:28 > 0:01:30That seems to go back
0:01:30 > 0:01:32a very long way.
0:01:32 > 0:01:36All of these properties went to auction and we'll find out who
0:01:36 > 0:01:40bought them and what they paid when they went under the hammer.
0:01:40 > 0:01:41Right in the back, sir.
0:01:44 > 0:01:48I'm in Derbyshire, in a former mining area near the old Rawdon Colliery.
0:01:48 > 0:01:53It's the last deep mine in the region, which closed in the early '90s.
0:01:53 > 0:01:59The colliery is now home to a discovery centre, which is at the heart of the new National Forest.
0:01:59 > 0:02:06It's an area of 200 square miles where hundreds of thousands of trees have been planted.
0:02:06 > 0:02:10This is Moira, near Swadlincote, on the border between Derbyshire
0:02:10 > 0:02:14and Leicestershire, and I'm here to see this.
0:02:14 > 0:02:19It's a two-bedroomed bungalow built in the 1960s.
0:02:20 > 0:02:21Lovely.
0:02:21 > 0:02:27It went to auction guided at 95,000 and the unkempt front garden and old garage
0:02:27 > 0:02:34certainly don't boost the appearance, so first impressions aren't too good.
0:02:34 > 0:02:37It's so funny. Even after doing this show for six years, I still walk into
0:02:37 > 0:02:40a house and you don't know what you'll find.
0:02:40 > 0:02:44Is it going to smell, is it going to be damp, or water dripping through the ceilings?
0:02:44 > 0:02:47And, you know what? Sometimes, like right now,
0:02:47 > 0:02:50I'm quite pleasantly surprised.
0:02:50 > 0:02:52Blimey! Look at this!
0:02:52 > 0:02:56It looks like it's been recently repainted. It's got double glazing.
0:02:56 > 0:02:58There's an open fire, there.
0:02:58 > 0:03:01It looks horrible, but only because of the floor.
0:03:01 > 0:03:04It's got rubbish on it, it hasn't got a carpet.
0:03:04 > 0:03:08Stick a carpet in here and it's like a showhouse.
0:03:08 > 0:03:12Well, maybe that's going a bit too far!
0:03:12 > 0:03:17But at a guide price of 95,000, there does seem to be a lot on offer here.
0:03:17 > 0:03:22There are two bedrooms - a large double at the front with built-in wardrobes
0:03:22 > 0:03:26and a smaller double to the rear, all recently decorated,
0:03:26 > 0:03:33but there's no carpet or central heating, just storage heaters, not to everyone's taste.
0:03:37 > 0:03:40That's great. Nice white bathroom suite, reasonable condition,
0:03:40 > 0:03:43and then you come through into the kitchen.
0:03:43 > 0:03:48You've got a tiled floor. OK, not the most the most up-to-date units, but perfectly serviceable.
0:03:48 > 0:03:52One slight issue - that definitely a bit damp.
0:03:52 > 0:03:57I reckon there's a bit of a leak around the flashing on the chimney, so that needs to be looked at,
0:03:57 > 0:04:01but apart from that it's perfectly serviceable.
0:04:01 > 0:04:06You could just move into this bungalow as it is. What a surprise!
0:04:06 > 0:04:12And I've made another discovery because potentially, there is room to extend here.
0:04:14 > 0:04:17Just a bit of a hint and tip here.
0:04:17 > 0:04:21Take a leaf out of the professional's book and if you're looking at a lot of properties,
0:04:21 > 0:04:26why not stick a set of ladders in your car? You can get telescopic ones, not that expensive,
0:04:26 > 0:04:29because it's really important you look into the loft space.
0:04:29 > 0:04:32For instance, in this place I'm thinking,
0:04:32 > 0:04:35there's opportunity to expand up there, maybe put a dormer in,
0:04:35 > 0:04:39and I noticed that the way the roof is constructed means
0:04:39 > 0:04:42you've got easy access, you could create a room up there.
0:04:42 > 0:04:47So, you wouldn't know that if you couldn't look up there. That's today's tip.
0:04:47 > 0:04:51There's even more opportunity to create accommodation at the rear of the bungalow.
0:04:53 > 0:04:55No, a bit of a surprise inside, then!
0:04:55 > 0:05:00Much better than I anticipated and you ain't seen the half of it!
0:05:00 > 0:05:05Because along with the house comes the garden
0:05:05 > 0:05:07and it's...
0:05:07 > 0:05:08pretty big.
0:05:08 > 0:05:11It goes on and on.
0:05:11 > 0:05:15It's a bit confusing, though, because although you end up a long way
0:05:15 > 0:05:20from the bungalow, the garden actually finishes at these trees.
0:05:20 > 0:05:28However, I happen to know that the auction lot also came with that huge great paddock.
0:05:28 > 0:05:30Absolutely beautiful!
0:05:30 > 0:05:33What a bonus!
0:05:33 > 0:05:40What can the auctioneer who sold the bungalow tell us about this property with its large paddock at the rear?
0:05:40 > 0:05:44Could it be developed in some way?
0:05:44 > 0:05:48I would say the paddock is probably not large enough to support
0:05:48 > 0:05:54livestock because the adage is that you need almost an acre for a pony
0:05:54 > 0:05:57and it isn't that sort of size.
0:05:57 > 0:05:59The property belonged to a housing association.
0:05:59 > 0:06:04They had consultations with the planners before they decided to market the bungalow
0:06:04 > 0:06:09as to what the development potential was at the back there and I really think that they...
0:06:09 > 0:06:14They got a very firm no, hence the fact that it came together as one lot to be sold at auction.
0:06:14 > 0:06:16Now, somebody else might try
0:06:16 > 0:06:21their hand in a year or two's time and they may get a different answer, but at the moment, no.
0:06:23 > 0:06:29I suppose for a speculative investor there's always that hope factor, and if you just want a nice spot
0:06:29 > 0:06:37of land as it is it's ideal, but how much could the bungalow be worth after some refurbishment?
0:06:37 > 0:06:40It's not an easy one to put a value on for two reasons.
0:06:40 > 0:06:45One, because it's almost an individual property, and the more important ingredient is the paddock
0:06:45 > 0:06:52and, of course, that depends on to what extent somebody values that, but I think it's 175,000, 180,000.
0:06:52 > 0:06:55Where you to extend it and make it three, four bedrooms, then you'd
0:06:55 > 0:06:59probably be raising its value only to about 225,000, 235,000.
0:07:01 > 0:07:04Well, I guess I'm going to have to eat my words.
0:07:04 > 0:07:09For a guide price of 95,000 quid, this is a lovely little bungalow.
0:07:09 > 0:07:15Yes, it's a bit tired and dated, but basically you can move into it as it is, and if that isn't enough,
0:07:15 > 0:07:17the paddock at the back!
0:07:17 > 0:07:20It's a great one. Let's see who spotted it at the auction.
0:07:20 > 0:07:22Lot 53, number 82 Donisthorpe Lane
0:07:22 > 0:07:27in Moira, traditional two bedroom double fronted detached bungalow
0:07:27 > 0:07:32and an area of paddock land to the rear of it. Start me on this, ladies and gentlemen, where you like.
0:07:32 > 0:07:36May I suggest £100,000? 100 is bid here, thank you.
0:07:36 > 0:07:43102 I have. 104. 106. 108. 110. 12.
0:07:43 > 0:07:47114. 116. 118. 20.
0:07:47 > 0:07:5122. 124. 26. 28. 30. Two.
0:07:51 > 0:07:5534. 36. 38. 140. 142.
0:07:55 > 0:08:02144. 146. 148. 150. 152.
0:08:02 > 0:08:05154. 154, are you sure? 154,000.
0:08:05 > 0:08:0956 I'm looking for elsewhere.
0:08:09 > 0:08:13At £154,000. 56, quickly?
0:08:13 > 0:08:14At £154,000, then.
0:08:14 > 0:08:16For the first time. 56.
0:08:16 > 0:08:2158. 160? 59.
0:08:21 > 0:08:23160. 61?
0:08:23 > 0:08:2761. 162?
0:08:27 > 0:08:29162. 63?
0:08:29 > 0:08:3163 is bid. 64?
0:08:31 > 0:08:33164. Five?
0:08:33 > 0:08:3765. 166.
0:08:37 > 0:08:39167?
0:08:39 > 0:08:43£166,000 for the first time.
0:08:43 > 0:08:46166,000 for the second time.
0:08:46 > 0:08:47The bid is here, no mistakes.
0:08:47 > 0:08:51All done, third and last time at £166,000.
0:08:51 > 0:08:54Yours, sir. Sold to you. Thank you.
0:08:54 > 0:08:57Wow! Auction table tennis!
0:08:57 > 0:09:01That very fast and furious bidding battle was won by Derbyshire- based couple Keith and Jean.
0:09:01 > 0:09:08The £166,000 they paid was well over the £95,000 guide price,
0:09:08 > 0:09:12but Keith's a builder, which should come in handy.
0:09:12 > 0:09:17I met up with them back at the bungalow to find out about their plans.
0:09:17 > 0:09:20- Keith, Jean, congratulations! - Thank you.
0:09:20 > 0:09:24- It's a surprisingly nice bungalow once you get inside, isn't it? - It's not too bad, yeah.
0:09:24 > 0:09:26Tell me why you wanted to buy it.
0:09:26 > 0:09:28- Investment.- Yeah.
0:09:28 > 0:09:32Yeah, well, you know, we bought it as an investment and, you know,
0:09:32 > 0:09:35to see if we can make a few shilling as years go by.
0:09:35 > 0:09:37And what do you feel about what you paid for it?
0:09:37 > 0:09:41About right for the area. About the right sort of money.
0:09:41 > 0:09:45- It's a good price, considering the ground we've got.- The ground was the big attraction.
0:09:45 > 0:09:49There's not many houses come up with that amount of ground with it today.
0:09:49 > 0:09:51You know, for that sort of money, as well.
0:09:51 > 0:09:54And is the plan to actually move in here, or what?
0:09:54 > 0:09:57Yes. I think we will do, yeah, eventually.
0:09:57 > 0:10:02We're going to modernise it totally and extend, if we can, and then move in.
0:10:02 > 0:10:05Tell me a bit about you two.
0:10:05 > 0:10:08Been together about 12 years, or just over.
0:10:08 > 0:10:14We had a split up and we were apart when we actually bought this at the auction and we're back together now.
0:10:14 > 0:10:16This is the second week back together.
0:10:16 > 0:10:18Oh, congratulations!
0:10:18 > 0:10:22So, was the auction anything to do with getting back together again?
0:10:22 > 0:10:27Well, I suppose it was. It's given us a common aim to renovate the property.
0:10:27 > 0:10:32So the auction, in some way, has acted as a bit of a Cupid?
0:10:32 > 0:10:34Possibly, yeah. Look at it that way, yeah.
0:10:34 > 0:10:37Oh! Well, in all the time I've been doing Homes Under The Hammer,
0:10:37 > 0:10:39it's the first time we've heard of that being a...
0:10:39 > 0:10:43Being a relationship saver!
0:10:45 > 0:10:47Well, that's amazing!
0:10:47 > 0:10:50All the pressure of property developing usually puts a real strain
0:10:50 > 0:10:55on relationships, but this couple are determined it'll save theirs.
0:10:55 > 0:11:00They've also got some big plans for this bungalow and the paddock.
0:11:00 > 0:11:04What about the property itself? What are you planning to do with it?
0:11:04 > 0:11:06Extend the back.
0:11:06 > 0:11:10- Right.- And up. - And up. A loft conversion.
0:11:10 > 0:11:12And then we'll get another two rooms upstairs.
0:11:12 > 0:11:14See if we can get two more bedrooms.
0:11:14 > 0:11:19- One ensuite.- We've got a bit to do! - Well, quite ambitious plans, then. - Yeah, just a bit, yeah.
0:11:19 > 0:11:21Yeah, some work. Quite a big job.
0:11:21 > 0:11:24# Let's go round agsin... #
0:11:24 > 0:11:30Keith has got nearly 40 years' experience of renovating properties and new builds, but although this
0:11:30 > 0:11:37is the 10th property he and Jean have worked on, it's the first one since they got back together again.
0:11:37 > 0:11:38So, who's going to do the work?
0:11:38 > 0:11:45- Me, Jean and the team of lads that work with me. - How much is it all going to cost?
0:11:45 > 0:11:50I think possibly we've got figures around about 30,000
0:11:50 > 0:11:53to do, but it may sort of run into a little bit more.
0:11:53 > 0:11:57- I think it will.- When we've actually got in and sort of had a look round.
0:11:57 > 0:11:59It'll be nearer 40.
0:11:59 > 0:12:01Probably be nearer 40 by the time we've done everything.
0:12:01 > 0:12:03And any idea how long it's all going to take?
0:12:03 > 0:12:09Well, usually for a big renovation it's about a three-month period from start to finish.
0:12:09 > 0:12:11I can get it done in that time fairly comfortable.
0:12:11 > 0:12:13Yeah, that's all subject to planning.
0:12:13 > 0:12:19And then we've got the ground to make use of, whether it's with horses or any other thing, really.
0:12:19 > 0:12:25Yeah, we'd... We'd spoke about sort of log cabins, didn't we at one time?
0:12:25 > 0:12:30- Log cabins?- Yeah, up there, but I don't know whether we would get enough access down here.
0:12:30 > 0:12:35- What do you mean by log cabins? - Well...- Holiday lets.- Holiday lets. It's just an idea.
0:12:35 > 0:12:38- It's a bit of a touristy place. - We're in the National Forest here.
0:12:38 > 0:12:42- Right.- And there is a shortage of places for people to stay.
0:12:42 > 0:12:45Presumably, the planners would sort of mumble a bit.
0:12:45 > 0:12:48May do, may do, yes, yes.
0:12:48 > 0:12:50So, what do you think the biggest challenge is going to be, Jean?
0:12:50 > 0:12:52- Keeping the peace.- Yeah, keeping...
0:12:52 > 0:12:54Staying happy!
0:12:54 > 0:12:59Well, listen, good luck with it all and I really do wish you all the best on all fronts.
0:12:59 > 0:13:01- Thank you.- We'll look forward to seeing how you get on.
0:13:01 > 0:13:03- Thanks.- Thank you.
0:13:07 > 0:13:10So, Keith with some quite ambitious plans, then.
0:13:10 > 0:13:13In terms of the ones for the house, not too much of an issue.
0:13:13 > 0:13:17In terms of the stuff in the paddock, well, I think he'll have a fight on his hands,
0:13:17 > 0:13:21but you can find out how he gets on later in the show.
0:13:24 > 0:13:29This is Earlsfield, a leafy South London suburb
0:13:29 > 0:13:32just half an hour's commute from London's Waterloo station.
0:13:32 > 0:13:37I'm here to see a property that hasn't been on the market for the last 30 years.
0:13:37 > 0:13:40Now, when I hear that, I think there's value to be added.
0:13:40 > 0:13:44Now, I imagine houses that are an unmodernised and in desperate need of repair.
0:13:44 > 0:13:48They're the ones that developers like me are keen to get their hands on.
0:13:48 > 0:13:56Now, the guide price for this seven-room mid-terrace property is just £350,000.
0:13:56 > 0:13:59I can't wait to get inside there today!
0:13:59 > 0:14:02It looks like a lot of house for the money
0:14:02 > 0:14:05and don't let those metal safety grills on the windows put you off.
0:14:05 > 0:14:09They're only there to protect the house from intruders.
0:14:09 > 0:14:13People often see a photo in an auction catalogue and presume that
0:14:13 > 0:14:19the windows are broken and the house has been vandalised or, worse still, that the property is fire damaged.
0:14:19 > 0:14:21It's not so in this case.
0:14:21 > 0:14:24I can't wait to look inside.
0:14:24 > 0:14:26Just as I had suspected!
0:14:26 > 0:14:32It's been untouched. It's almost as if you had been transported back to the Victorian times.
0:14:32 > 0:14:34Look at the old wallpaper! I mean, it is incredible.
0:14:34 > 0:14:37It's packed with features and in the front reception room
0:14:37 > 0:14:40you've still got the beautiful Victorian fireplaces.
0:14:40 > 0:14:43I'm sure once you've taken the grills off the windows
0:14:43 > 0:14:46you've got some original sashes underneath all of that.
0:14:46 > 0:14:51But fantastic proportions. You've got the cornicing in there.
0:14:51 > 0:14:56I mean, it really is such a delight to come into a house as untouched as this.
0:14:56 > 0:14:58Now, you've got the second reception room.
0:14:58 > 0:15:00Again, you've got wonderful high ceilings.
0:15:00 > 0:15:03It really is echoey because it's so empty in here.
0:15:03 > 0:15:10You could possibly think about knocking through here to create one big open-plan space.
0:15:10 > 0:15:12You've got a lovely old original cast-iron fireplace.
0:15:12 > 0:15:18You know, I'm really glad these little gems still pop up
0:15:18 > 0:15:23in the auction room because it's houses like this that keep me interested.
0:15:23 > 0:15:26It's becoming increasingly difficult to find houses like this.
0:15:26 > 0:15:31It's a real joy to come in here and step back in time.
0:15:34 > 0:15:41At the back of the hallway, down five steps, is a small dining room and what remains of the kitchen.
0:15:44 > 0:15:48And on the half landing, there's a bedroom and a bathroom-cum-washroom.
0:15:52 > 0:15:59Up another flight of stairs, the challenge continues into the main front bedroom.
0:15:59 > 0:16:04But the good news is that the bedrooms have more Victorian features
0:16:04 > 0:16:06that I just hope don't get ripped out.
0:16:06 > 0:16:14At a guide price of £350,000 it does certainly have something that people are prepared to pay a premium for.
0:16:16 > 0:16:20With this house, you get a chunk of garden which is good for this part of town.
0:16:20 > 0:16:27Now, you may need to spend some time out here with the old garden shears, but it's still a good family space
0:16:27 > 0:16:31and when you look next door at the other gardens, you can't help but feel
0:16:31 > 0:16:35a little smug when you see you have much more than double their space.
0:16:37 > 0:16:40So, with this garden, the Joneses have to keep up with you!
0:16:40 > 0:16:45Time now to see if a local estate agent shares my initial excitement about this house.
0:16:45 > 0:16:48Yes, it's beautiful, but with signs
0:16:48 > 0:16:53of damp and some dry rot, it could turn into a money pit.
0:16:53 > 0:16:56Amazing house. It's almost like a timewarp.
0:16:56 > 0:16:58It's not been touched for many years.
0:16:58 > 0:17:00It's a Victorian house. beautiful house.
0:17:00 > 0:17:03No walls have been removed, so you've got the original layout
0:17:03 > 0:17:04which gives you loads to do with it.
0:17:04 > 0:17:06So, yeah, very nice. Lots of potential.
0:17:06 > 0:17:12It needs to be refurbished to a very good standard, but the one thing it does have is it's got a good roof.
0:17:12 > 0:17:13That will save you some money.
0:17:13 > 0:17:18And, let's be honest, whoever takes this on is going to need a substantial budget
0:17:18 > 0:17:22if they're going to realise the full potential of this lovely house.
0:17:22 > 0:17:24It's a property you can add a lot of value to because nothing's been
0:17:24 > 0:17:28done to it, so you can do what you want, you can bring it right up to
0:17:28 > 0:17:34standard, modern day technologies as one would put it, because nobody's touched it in so many years.
0:17:34 > 0:17:39And that's the big appeal here, all those wonderful original features.
0:17:39 > 0:17:44The house went to auction guided at £350,000, so once renovated,
0:17:44 > 0:17:50what could it sell for and how much income could it produce for a buy-to-let investor?
0:17:50 > 0:17:55When renovated, I think it would be on the market towards the top end of 600,000. So 595,000, 600,000.
0:17:55 > 0:17:59Per calendar month, it would rent at around the 2,000 or just above mark,
0:17:59 > 0:18:04depending on the time of year because it's very seasonal.
0:18:06 > 0:18:11This is fantastic, but it's a huge undertaking.
0:18:11 > 0:18:16Dry rot, possible signs of subsidence - this is far from just a cosmetic job.
0:18:16 > 0:18:19Whoever took this on was a brave bidder.
0:18:19 > 0:18:22Let's see who that was when we go to auction.
0:18:22 > 0:18:27Lot 15, this is 5 Dingwall Road, Earlsfield.
0:18:27 > 0:18:28I don't know - where do you want to start?
0:18:28 > 0:18:31Where would you like to start?
0:18:31 > 0:18:32350, anyone? I'm not going to go below 350.
0:18:32 > 0:18:34It must be cheap at that.
0:18:34 > 0:18:37350 at the back. 350. 355 anywhere?
0:18:37 > 0:18:41355. 360?
0:18:41 > 0:18:45360. 360. 365. I've lost you. 365.
0:18:45 > 0:18:47370?
0:18:47 > 0:18:51370. 375. 380?
0:18:51 > 0:18:55380. 385?
0:18:55 > 0:18:57385.
0:18:57 > 0:18:59390.
0:18:59 > 0:19:02395.
0:19:02 > 0:19:03400?
0:19:03 > 0:19:05400. 405?
0:19:05 > 0:19:09405. 410.
0:19:09 > 0:19:12What's that? 46? 46.
0:19:12 > 0:19:1447.
0:19:14 > 0:19:1648.
0:19:16 > 0:19:1849. 410.
0:19:20 > 0:19:21411?
0:19:21 > 0:19:23411. One more go.
0:19:23 > 0:19:26411. What are you going to do?
0:19:26 > 0:19:31I've got 411 down here. Are you coming back in? If not, 411.
0:19:31 > 0:19:35First time. Second time. Third and last time if you're all done?
0:19:35 > 0:19:37Sold 411. Well bought, well done.
0:19:37 > 0:19:43The winning bidders who were so hard to spot in the auction room were Jay and his wife, Christine.
0:19:43 > 0:19:51They paid £411,000 for the house, 61 grand over the guide price, and they intend to make it home.
0:19:51 > 0:19:55Jay's a financial risk manager, Christine's a producer/director
0:19:55 > 0:19:57and they currently live in a two-bedroom flat.
0:19:57 > 0:20:03They've been on the lookout for their ideal home for over two years.
0:20:04 > 0:20:06Christine and Jay, congratulations!
0:20:06 > 0:20:09- Thank you. - First of all, I love this house.
0:20:09 > 0:20:11What an amazing find!
0:20:11 > 0:20:13So, who's responsible?
0:20:13 > 0:20:16- He is, really.- Basically, I am.
0:20:16 > 0:20:22I've gone to a lot of auctions and always come home empty handed and finally, finally managed to get one.
0:20:22 > 0:20:25- So, what happened? You saw it the catalogue?- Yeah.
0:20:25 > 0:20:30- Did you go to the viewings?- Yeah, we came here twice, had a look around and then thought it's worth the risk.
0:20:30 > 0:20:34We didn't have time to have a survey done before.
0:20:34 > 0:20:36We've probably looked for about three years, on and off.
0:20:36 > 0:20:42- Yeah.- We've been to auctions where we've been outbid before we've even put one bid on
0:20:42 > 0:20:47so we just, I don't know, we just had a good feeling and then we won, so...
0:20:47 > 0:20:50Yes! And it was yours and you paid 411,000.
0:20:50 > 0:20:52- Yeah.- Yeah, that's right, yeah.
0:20:52 > 0:20:59As Christine's expecting their first baby in a couple of months, time was running out.
0:20:59 > 0:21:05Jay's financial management skills were needed to secure the funding and it went right up to the wire.
0:21:05 > 0:21:08Did you have your finances in place on the day?
0:21:08 > 0:21:10Five minutes before, literally.
0:21:10 > 0:21:17Jay had a good relationship with one bank and they phoned him five minutes before
0:21:17 > 0:21:23and he then came back into the room to bid to say "We'll be able to give you what you need."
0:21:23 > 0:21:26- So, it was all a bit touch and go all the way along?- Stressful, yeah.
0:21:26 > 0:21:31Yeah, it was. It's not an easy time to go to find a mortgage.
0:21:31 > 0:21:39'So, that's why Jay was so difficult to spot at the auction, but having spent £411,000, I was intrigued
0:21:39 > 0:21:44'to discover their plans for this lovely house.' So, have you got an architect in place for this job?
0:21:44 > 0:21:48Yeah, we've got an architect called Jeremy who was recommended to us by
0:21:48 > 0:21:52a friend who's done some property development in this area, so he's
0:21:52 > 0:21:57a local chap and he knows this area really well and he's already come up with some really nice plans.
0:21:57 > 0:22:00So, that's quite good, he'll have probably worked with the
0:22:00 > 0:22:04local planners before anyway, which always goes in your favour.
0:22:04 > 0:22:09And what sort of ideas in terms of development are you going to be doing here?
0:22:09 > 0:22:16So, there's a side return going adjacent to the kitchen and Jeremy basically decided to break
0:22:16 > 0:22:20through the walls and extend the return up to the neighbour's house and make that a conservatory.
0:22:20 > 0:22:26With a big high glass sort of ceiling one and a half storeys off that.
0:22:26 > 0:22:29And then open out the front of the kitchen to the garden, so have decking.
0:22:29 > 0:22:33Oh, fantastic! So quite airy and open and contemporary.
0:22:33 > 0:22:37And at the front we want to sort of see from the front room through to...
0:22:37 > 0:22:42We're going to knock the wall through to make a play room and then knock the next wall through so you'll
0:22:42 > 0:22:46see the glass bit of the kitchen and then, hopefully, the garden.
0:22:46 > 0:22:50So it's sort of when you look through, you see the whole way through the house.
0:22:50 > 0:22:55- So, a lovely huge outlook on to the garden.- Yeah. With lots of sort of family space.
0:22:55 > 0:22:58What sort of realistic timescales are you looking at?
0:22:58 > 0:23:04If the planning came through, I think the build could be done in sort of six months,
0:23:04 > 0:23:07but who knows if the planning will come through that fast.
0:23:07 > 0:23:09In London it's not always that easy.
0:23:09 > 0:23:12Employing an architect familiar with the local
0:23:12 > 0:23:16building regulations should help - however, they could still be delayed because they're thinking
0:23:16 > 0:23:22of submitting a second planning application which would include a fourth bedroom up in the loft.
0:23:22 > 0:23:26Of course, that means they would have to pay for two applications.
0:23:26 > 0:23:32Whichever one gets the go ahead, this house will certainly need a lot of money spent on it.
0:23:32 > 0:23:37- What's your budget for this?- We're still exploring the possibility of making it a fourth bedroom
0:23:37 > 0:23:41and going into the roof and trying to get that fourth bedroom.
0:23:41 > 0:23:45If we did that it would be 150, and if we can't get planning permission for that, probably 110.
0:23:45 > 0:23:49So, what sort of realistic timescales are you looking at here?
0:23:49 > 0:23:54Eight months, hopefully. But that, again, might be quite ambitious.
0:23:54 > 0:23:57- Have you guys ever embarked on anything as big as this before?- No.
0:23:57 > 0:24:00This is quite a brave step for you, isn't it?
0:24:00 > 0:24:03- Yeah.- Yes, yeah. - What are you most nervous about?
0:24:03 > 0:24:09I think going over budget, managing it financially with only one income.
0:24:09 > 0:24:12And I don't think we're fazed by the project
0:24:12 > 0:24:18and we know it's going to be hard, it's sort of surviving it without you know...well, stuff to eat, so...
0:24:18 > 0:24:22Do you really think it's going to get that bad you're going to go hungry?
0:24:22 > 0:24:26It will be tight, but it will be worth it. It will be worth it, yeah.
0:24:26 > 0:24:32- We might have to make some compromises.- Eat once a week or something, yeah!
0:24:32 > 0:24:38Oh, dear! Beans on toast and baby food all round, then!
0:24:41 > 0:24:45And with such a mammoth project and a new baby on the way,
0:24:45 > 0:24:49let's hope they haven't bitten off more than they can chew.
0:24:49 > 0:24:55What a fantastic story! A real home and not just a development project.
0:24:55 > 0:24:59It will take time but they seem to have it well planned
0:24:59 > 0:25:04and they are realistic with their budgets and timescales. I wish them well with this and the new arrival.
0:25:04 > 0:25:08You can see how the whole family get on later in the show.
0:25:08 > 0:25:12Coming up, this South Wales property won't appeal to everyone.
0:25:12 > 0:25:17As a house to live in, maybe it's not ideal. As a rental property, it's got great potential.
0:25:18 > 0:25:21Did the baby blues put this house in London in the red?
0:25:21 > 0:25:25It has put a lot of stress and Christine and I.
0:25:25 > 0:25:29We really did underestimate what we thought it was going to cost.
0:25:29 > 0:25:35But, first, back to this Derbyshire bungalow where Keith's not given up.
0:25:35 > 0:25:38I'll get there in the end. Oh, yes, must keep going.
0:25:41 > 0:25:47Five and a half months have passed since Keith and Jean paid £166,000
0:25:47 > 0:25:53for this Derbyshire bungalow, which they were hoping would strengthen their relationship.
0:25:54 > 0:25:57Now, the signs certainly look good here.
0:25:57 > 0:26:03A new drive has been laid and it's been repainted and retiled.
0:26:05 > 0:26:08But, like a film set, it's not the same round the back.
0:26:08 > 0:26:13There's no roof, loads of rubble and no extension.
0:26:13 > 0:26:19Inside, the bungalow's been torn apart and the three chimneys have all been demolished.
0:26:19 > 0:26:24Nowhere's escaped. Both bedrooms, the living room and the kitchen.
0:26:24 > 0:26:27Everywhere, walls have come down while others have gone up.
0:26:32 > 0:26:37Since the last time you were here I've moved this door further back,
0:26:37 > 0:26:40it gives us a bit more room in the hallway.
0:26:40 > 0:26:47I've moved a wall back and I'm going to put stairs up, leading to two large bedrooms and an ensuite,
0:26:47 > 0:26:51which should make quite a difference to the size on the first floor.
0:26:55 > 0:27:01Keith, a successful builder for 40 years, and his partner, Jean, hoped to cement their relationship
0:27:01 > 0:27:06with this joint investment, so how have they been getting on?
0:27:06 > 0:27:14When I bought this, I bought this with my ex-partner that we'd been split up with for a little while.
0:27:14 > 0:27:16We did get back together.
0:27:16 > 0:27:19It lasted three and a half months and now we've split again.
0:27:19 > 0:27:26That sort of knocked me from being sort of flat out doing it to sort of half pace, you know?
0:27:26 > 0:27:32It just has an effect on you, split-ups, like, especially when you've been with someone so long.
0:27:32 > 0:27:37But I'm moving again now, so hopefully we can crash on.
0:27:41 > 0:27:44Remember, they'd both invested in this bungalow.
0:27:44 > 0:27:48Their plans for an extension have been passed,
0:27:48 > 0:27:54so the lounge and the kitchen could be increased and a dining room added.
0:27:54 > 0:27:58Well, the main extension will come out to about where I am now.
0:27:58 > 0:28:03There's another bit sticking out for the lounge which comes at an angle.
0:28:03 > 0:28:07We've had a little bit of trouble with the trees as regards the roots.
0:28:07 > 0:28:10I've had to have words with the building inspector.
0:28:10 > 0:28:14He was talking about maybe having to go down three metres.
0:28:14 > 0:28:17I've got a structural engineer involved and he recommends
0:28:17 > 0:28:22two and a half metres and that should get round the problem there.
0:28:22 > 0:28:26In the meantime, the back garden remains a building site.
0:28:28 > 0:28:33There have been major ground works with fences and a garage.
0:28:33 > 0:28:37What about their plans for that large paddock and those holiday log cabins?
0:28:39 > 0:28:42We looked at one or two or two prices.
0:28:42 > 0:28:47She looked on the internet, but it didn't materialise at the end of the day.
0:28:47 > 0:28:52Although Keith's done the majority of the work, he's had had some help from a friend
0:28:52 > 0:28:58and his brother's on standby for the extension, but what about his business partner?
0:28:58 > 0:29:03Well, Jean tends to do the bathrooms and kitchens,
0:29:03 > 0:29:07she was generally into that. I think she'll still take that role, so...
0:29:07 > 0:29:11We are sort of getting on at the moment, we are speaking, so that's a plus!
0:29:11 > 0:29:16Has their budget fared any better?
0:29:16 > 0:29:23The outside, the ground works and the garage and the stage we're at now, I've got about 20,000 put in.
0:29:23 > 0:29:27If I can get it all in for 55, 60 grand, you know, that's...
0:29:27 > 0:29:29That will be OK, I think.
0:29:29 > 0:29:36Once the bungalow's completed, then what? This is a joint business venture, after all.
0:29:36 > 0:29:42I think one of us has got to live in it, possibly me, and sell the one where we...
0:29:42 > 0:29:44Where I live at the moment.
0:29:44 > 0:29:50I think I've got to start afresh and coming down here will be that sort of dream.
0:29:50 > 0:29:53It's only going to be half owned by me,
0:29:53 > 0:29:59but, hopefully, I'll probably go to the auctions and buy another at some time, move again.
0:30:01 > 0:30:04Time to see if two local estate agents
0:30:04 > 0:30:08can look beyond the rubble and see the potential value in this bungalow.
0:30:08 > 0:30:11I've had a good look at the plans and when they're done,
0:30:11 > 0:30:13it's going to make a substantial home.
0:30:13 > 0:30:15The bungalow is a bit boring from the front.
0:30:15 > 0:30:18I think it lacks... It hasn't a lot of character.
0:30:18 > 0:30:21I don't think it's a hugely appealing house,
0:30:21 > 0:30:24albeit the position is very, very popular.
0:30:24 > 0:30:28The market at the moment for chalet bungalows is that it is an acquired taste.
0:30:28 > 0:30:30You either love them or you hate them.
0:30:30 > 0:30:34But he's doing a good job of it and it looks like it's going to be
0:30:34 > 0:30:37a decent house from the size of the plans.
0:30:37 > 0:30:41First off, that extension needs building and the chalet bungalow will have to be finished.
0:30:41 > 0:30:44How much could it then be worth?
0:30:44 > 0:30:49Keith paid 166,000 on auction day and, looking at a budget of around 60,000,
0:30:49 > 0:30:54he'll need over 226,000 for any profit.
0:30:56 > 0:30:59I would have thought once the building is complete and depending
0:30:59 > 0:31:04on the market conditions, we'd probably be looking to achieve towards about 300,000 for it.
0:31:04 > 0:31:07In my opinion an open market valuation in the current market
0:31:07 > 0:31:11would be in the region of 225,000 to 230,000 for it.
0:31:11 > 0:31:13The 300 is bang on what I thought.
0:31:13 > 0:31:16The 22 whatever's...no, that's low.
0:31:16 > 0:31:20Of course, it's hard to get an accurate valuation in this condition.
0:31:20 > 0:31:24Keith's going through a lot of changes in his life at the moment.
0:31:24 > 0:31:28How does he see things shaping up in the future?
0:31:28 > 0:31:33I shall sort of carry on developing as much as I can, if I've got the money there, you know?
0:31:33 > 0:31:38Just get on with doing what I'm doing, what I do best.
0:31:38 > 0:31:42I've always had drive and sort of ambition, if you like, so that's still there.
0:31:42 > 0:31:47I've been knocked off track with this project a little bit through
0:31:47 > 0:31:51things I've explained earlier but, yeah, I'll get there in the end.
0:31:51 > 0:31:52Oh, yeah, must keep going.
0:31:52 > 0:31:54Determination!
0:31:56 > 0:32:04For our next property going under the hammer, I've come to a truly beautiful location.
0:32:04 > 0:32:10Welcome to South Wales, to somewhere that's unpronounceable if you're English like me, so if you are Welsh,
0:32:10 > 0:32:14please forgive me, but I is as far as I'm concerned this is Nantyffyllon.
0:32:14 > 0:32:20The name actually means, "Farthing stream", as in penny farthing, so that's got to be a good start.
0:32:20 > 0:32:26But will the place I'm here to see need more than loose change to put it right?
0:32:26 > 0:32:33Well, actually the connotations to do with penny farthing were more to do with size than value,
0:32:33 > 0:32:37and certainly the property I'm here to see is anything but small.
0:32:37 > 0:32:42This is it, three bedroom three storey mid terrace, had a guide price of 49,000 quid.
0:32:46 > 0:32:52That guide price is certainly not high, but it might be related to the location of this property.
0:32:52 > 0:32:56Next door is a pub and the town itself is a bit off the beaten track,
0:32:56 > 0:32:58which could put some buyers off.
0:32:58 > 0:33:02Also, it's on a main road and there's even a bus stop outside.
0:33:02 > 0:33:04But, for a lot of people of course,
0:33:04 > 0:33:07it's what's on the inside that counts.
0:33:07 > 0:33:12So, it is quite a busy road out there, but at least the house is double glazed, which is a good start.
0:33:12 > 0:33:17And a nice sized living room. New fireplace.
0:33:17 > 0:33:20The rest of it is in sort of medium state of repair,
0:33:20 > 0:33:23but it gets really interesting when you start walking further back
0:33:23 > 0:33:27because you've got, like, this little mezzanine floor.
0:33:27 > 0:33:32This is where the kitchen is located, and I have to say it's a nice, big sized space.
0:33:32 > 0:33:35It's not sparkling but it's perfectly serviceable.
0:33:35 > 0:33:39These units are reasonably new and it depends on what you're going to use the house for.
0:33:39 > 0:33:42If you're going to rent it out, this will be fine.
0:33:42 > 0:33:43Let's take a look upstairs.
0:33:45 > 0:33:47I quite like these multilevel properties.
0:33:47 > 0:33:51You know, certainly lots of rooms for your money. Wowee!
0:33:51 > 0:33:54Interesting yellow colour, there.
0:33:57 > 0:34:03But... That seems to go back a very long way.
0:34:03 > 0:34:07You've got a bedroom there, you've got a bathroom here,
0:34:07 > 0:34:09you've got another bedroom here!
0:34:09 > 0:34:15That goes further back than the rest of the house.
0:34:15 > 0:34:16How strange!
0:34:17 > 0:34:23What we've got, then, is a very large rear bedroom overlooking the hills...
0:34:25 > 0:34:31..and a quaint sized bathroom, and even the smaller bedroom has room for a boiler on the wall.
0:34:31 > 0:34:37But turn right at the top of the stairs and there's a third bedroom at the front.
0:34:37 > 0:34:40The rooms are a good size and for any buy-to-let investor
0:34:40 > 0:34:47looking to maximise accommodation, I reckon you could easily squeeze in a fourth bedroom up here.
0:34:47 > 0:34:52The opportunities continue down in the basement, although there are some serious damp issues to sort.
0:34:52 > 0:34:59The question is, why does this topsy-turvy house have so many stairs and more space the higher you go up?
0:34:59 > 0:35:02I've brought you to the rear of the property to show you something
0:35:02 > 0:35:05which actually explains why the house is a bit of a Tardis.
0:35:05 > 0:35:07If you look at the rear, what you've got
0:35:07 > 0:35:09is the bit below is a different property.
0:35:09 > 0:35:13The bit at the top there, that is the property that's up for auction.
0:35:13 > 0:35:16And, as you can see, it sits above another property.
0:35:16 > 0:35:18It's what they call a flying freehold.
0:35:18 > 0:35:23Now, it's not necessarily an issue unless the property down below doesn't look after itself.
0:35:23 > 0:35:27If that gets into a state of disrepair you have issues. It's definitely worth
0:35:27 > 0:35:30getting your lawyer or solicitor to check it out before you buy.
0:35:30 > 0:35:33I invited a local estate agent to come and look
0:35:33 > 0:35:36at this rather strangely configured house.
0:35:36 > 0:35:40I don't know whether these properties were originally built like this,
0:35:40 > 0:35:43but with the top of this rear property joined to the terrace at the front,
0:35:43 > 0:35:50I wonder what precautions an investor should take about possible freehold issues.
0:35:50 > 0:35:54There needs to be an indemnity policy put in place to cover
0:35:54 > 0:35:58any future risk factors that the flying freehold creates.
0:35:58 > 0:36:01Alternatively, another option here would be
0:36:01 > 0:36:04to convert this property and the one below it
0:36:04 > 0:36:09into a leasehold building and this would then become more of a maisonette than a house
0:36:09 > 0:36:13and the insurance policy in place would cover both properties.
0:36:13 > 0:36:18So, there'd be less confusion should there be damage caused to the basement area
0:36:18 > 0:36:20by a problem on the first floor.
0:36:20 > 0:36:25Of more immediate concern are the signs of damp in the basement.
0:36:25 > 0:36:30Judging by the rear of the property, you'd certainly want to get the external structure checked out.
0:36:30 > 0:36:35A lot to think about, then, and it would pay not to get too carried away.
0:36:35 > 0:36:39My feeling, this property would sell in the current market in good condition
0:36:39 > 0:36:44with all the problems solved for in the region of 70,000 to 75,000.
0:36:44 > 0:36:50With the potential resale value of just £75,000, you'd have to watch your budget very closely
0:36:50 > 0:36:52if you were hoping for any profit.
0:36:52 > 0:36:55For a buy-to-let investor looking to generate income,
0:36:55 > 0:36:59how much could be produced from the house in its current configuration
0:36:59 > 0:37:00with just the three bedrooms?
0:37:00 > 0:37:07I would imagine on this particular property, in good presentable order,
0:37:07 > 0:37:10we'd be looking at somewhere around 450 per calendar month.
0:37:12 > 0:37:18Add a fourth or a fifth bedroom down in the cellar and that income could increase, but there are problems.
0:37:18 > 0:37:25The house is next to a pub and there's the flying freehold and damp issues.
0:37:25 > 0:37:27So, an interesting one, this.
0:37:27 > 0:37:30The biggest issue, of course, the flying freehold.
0:37:30 > 0:37:33If you're looking at this as a house to live in, maybe it's not ideal.
0:37:33 > 0:37:38The closeness of the road, no garden, you know, the layout, a bit interesting.
0:37:38 > 0:37:41As a rental property, well, I think it's got great potential
0:37:41 > 0:37:44and, of course, it had that guide price of 49,000 quid.
0:37:44 > 0:37:47Let's see what happened when it went under the hammer.
0:37:47 > 0:37:50Lot number 17 now is the large three bedroom mid terrace house
0:37:50 > 0:37:54at 58 High Street, Nantyffyllon, near Maesteg.
0:37:54 > 0:37:57It's a split level three storey mid terrace property.
0:37:57 > 0:38:02What are we going to start on this one? Can I say 50 for it?
0:38:02 > 0:38:0740? I'm in your hands. 38? Let's get started, ladies and gentlemen.
0:38:07 > 0:38:0935, can I see?
0:38:09 > 0:38:11Is that at... 35, thank you, sir.
0:38:11 > 0:38:14At 35,000. And six will you? At six, thank you. At 36.
0:38:14 > 0:38:17You're out. Seven. 37, I'm bid.
0:38:17 > 0:38:21At £37,000. The hammer's up at 37,000 if you're done.
0:38:21 > 0:38:24Eight, thank you. I've got it in the back.
0:38:24 > 0:38:26Eight. Nine. 39. At 39.
0:38:26 > 0:38:3140 can I? Right in the back, wave to me again, sir. At 39,000.
0:38:31 > 0:38:34You're out right in the back? A fresh bidder again at 40,000.
0:38:34 > 0:38:38At 40. One. 41 I'm bid. At 41.
0:38:38 > 0:38:40Seated at 41,000. Two, if you like.
0:38:40 > 0:38:42At £41,000. Can I see another one?
0:38:42 > 0:38:45Two. At 42.
0:38:45 > 0:38:48Thank you. At 42 you're out, seated.
0:38:48 > 0:38:49Three. Thank you. 43 seated.
0:38:49 > 0:38:53At £43,000. It's against you. Four.
0:38:53 > 0:38:5544 standing right in the back.
0:38:55 > 0:38:58At 44,000 you've come in again.
0:38:58 > 0:39:02At £44,000. The hammer is up, make no mistake.
0:39:02 > 0:39:05I'll take a half if it helps you. Shout if I'm missing you.
0:39:05 > 0:39:08At £44,000.
0:39:08 > 0:39:10Right in the back, sir, £44,000.
0:39:10 > 0:39:14The successful bidder who paid £44,000,
0:39:14 > 0:39:175,000 under the guide price, is Dan.
0:39:17 > 0:39:21Considering all the floorspace he's got, I think he's done rather well.
0:39:23 > 0:39:29But when I met up with Dan back at the property, he seemed slightly startled to have bought it at all.
0:39:29 > 0:39:31- Dan, congratulations! - Thank you, thanks.- It's a big house.
0:39:31 > 0:39:33Why do you want to buy it?
0:39:33 > 0:39:36I wasn't expecting to buy this one in particular.
0:39:36 > 0:39:39It was the fact that I'm doing a house up the road anyway and I knew
0:39:39 > 0:39:43there was a couple of properties in the area coming on the auction,
0:39:43 > 0:39:49this being one of them, so I thought we'd have a day off and have a look in the morning and see what's about.
0:39:49 > 0:39:51So, did you see it before you bought it?
0:39:51 > 0:39:52Just in the morning, yeah.
0:39:52 > 0:39:59It might sound like a bit of an impulse buy for Dan, but don't be fooled by his youthful looks.
0:39:59 > 0:40:06With a nearby property close to completion, this will be his third renovation project for this year.
0:40:06 > 0:40:09And did I mention that this is not even his full time job?
0:40:09 > 0:40:13I run a restaurant in Whitland, the Road House Restaurant.
0:40:13 > 0:40:14Where's that then?
0:40:14 > 0:40:19It's about an hour and a quarter from here. It's coming up to the third anniversary now.
0:40:19 > 0:40:22- I originally started in a 50-seater converted bus as a cafe.- Wow!
0:40:22 > 0:40:25A bit of a... A bit of a change.
0:40:25 > 0:40:28- That was in one place or it drove around?- No, no.
0:40:28 > 0:40:31It was on the same location as the restaurant,
0:40:31 > 0:40:35but after being there for four years, I decided to build the restaurant then.
0:40:35 > 0:40:37- Build build as in...- Build.
0:40:37 > 0:40:39Yeah, right from the bottom right to the top.
0:40:39 > 0:40:41So, did you run the restaurant?
0:40:41 > 0:40:43Yeah, I'm still running it now.
0:40:43 > 0:40:46Well, not today, my girlfriend's stuck there all day!
0:40:46 > 0:40:52- But you cook and things? - Yeah, I'm a chef, but I've always liked to have my hands...
0:40:52 > 0:40:55you know, hands on work and I just want a bit more of a change,
0:40:55 > 0:40:59so back to have a look at what else I can get my hands onto.
0:40:59 > 0:41:03It sounds like swapping his chef's hat for a hard hat has come pretty naturally to Dan.
0:41:03 > 0:41:09Whatever the renovation work needed here is, compared to building a restaurant from the ground up,
0:41:09 > 0:41:12it's hardly jumping from the frying pan into the fire.
0:41:12 > 0:41:15- You plan on doing a lot of the work yourself?- Yes.
0:41:15 > 0:41:21Yeah, if not everything. Apart from getting somebody in to sort out maybe the damp, tanking the walls or
0:41:21 > 0:41:25injecting them, but apart from that, I want to do near enough everything.
0:41:25 > 0:41:27And how are you at DIY or building?
0:41:27 > 0:41:32Well, because I was brought up doing a bit of building and with building the restaurant,
0:41:32 > 0:41:39you know, there's not much, I hope, that I can't turn my hand to and I do my own electrics as well, so...
0:41:39 > 0:41:41You're qualified to do that?
0:41:41 > 0:41:46Yeah, I got Part P registered last year and when my sister's house was being built,
0:41:46 > 0:41:49I done the complete installation of that as well.
0:41:49 > 0:41:55- I'm quite competent with electrics. - What are you going to do to it?
0:41:55 > 0:42:00There's possibly a damp issue in the basement down here, so I'll get down there, get some damp proofing in.
0:42:00 > 0:42:05I might have to have a look up on the roof to see if there's any water coming in through the tiles.
0:42:05 > 0:42:09And then the rest of it just a basic clear up and tidy it up.
0:42:09 > 0:42:13Any plans for any structural changes or are you going to leave things as they are?
0:42:13 > 0:42:15I was possibly toying with the idea...
0:42:15 > 0:42:18Some of the bedrooms upstairs are very big.
0:42:18 > 0:42:22I could split them back into a smaller bedroom, possibly might
0:42:22 > 0:42:24get a better rental value from doing that.
0:42:24 > 0:42:28But get all of the awkward jobs done first and then have a look.
0:42:28 > 0:42:30- What about the kitchen? - I don't think it's too bad.
0:42:30 > 0:42:35It's a bit rough around the edges, but the units, they're pretty sound anyway,
0:42:35 > 0:42:41- apart from the obvious doors falling off, but I think we can sort that out.- So, any idea of budget?
0:42:41 > 0:42:43We'll wait and see.
0:42:43 > 0:42:49I do have an idea of how much it's going to cost, but it all depends if there's any nasty surprises...
0:42:49 > 0:42:54But I can't see that there's thousands and thousands need spending here.
0:42:54 > 0:42:59Fingers crossed, but at least Dan didn't have to pay a huge amount at auction.
0:42:59 > 0:43:04Well, it just goes to show, £44,000 for this.
0:43:04 > 0:43:08There are bargains out there for sure. Dan adding it to his portfolio.
0:43:08 > 0:43:14The only issue, of course, is can he afford the time to sort it out in between being a chef,
0:43:14 > 0:43:16doing up another property... Who knows?
0:43:16 > 0:43:18You can find out later in the show.
0:43:21 > 0:43:24As the saying goes, Martin, you win some, you lose some.
0:43:24 > 0:43:28So, did today's buyers' gamble pay off or not?
0:43:28 > 0:43:30Let's see how they got on.
0:43:30 > 0:43:35When we were last in Earlsfield, South West London, Christine and Jay
0:43:35 > 0:43:40had just paid £411,000 for this Victorian property.
0:43:40 > 0:43:45Nearly all the original features were intact, but it needed a full refurbishment.
0:43:45 > 0:43:49So what lay ahead for their new house and their new baby?
0:43:52 > 0:43:57Well, eight months have passed, the windows on the house have now been replaced and
0:43:57 > 0:44:02Christine, Jay and baby Rubin now have a lovely new home.
0:44:03 > 0:44:08The large front bedroom has retained lots of the original Victorian charm.
0:44:08 > 0:44:12I love those wonderful floorboards!
0:44:13 > 0:44:18The nursery, too, has kept the fireplace and original doors.
0:44:22 > 0:44:27Head down one flight of stairs and there's the third bedroom and the bathroom.
0:44:27 > 0:44:33On the ground floor, the front living room is once again a superb drawing room,
0:44:33 > 0:44:37just as the Victorian architect intended all those years ago.
0:44:37 > 0:44:40The house was in a complete mess, basically.
0:44:40 > 0:44:46There was frogs in the cupboard, there was mice everywhere, so we had to do essentially everything.
0:44:46 > 0:44:50But they were determined not to lose the Victorian character.
0:44:50 > 0:44:54Yeah, we did want to keep a lot of the original features, like the fireplaces,
0:44:54 > 0:44:58the banisters and some of the arches in the hallway
0:44:58 > 0:45:03and just to keep the sort of history of the house intact while putting a modern sort of feel to it.
0:45:03 > 0:45:08We've sanded floors in the first reception room, done the walls in the sort of play room here.
0:45:08 > 0:45:13We've brought the steps back towards the front of the house
0:45:13 > 0:45:16to create a toilet underneath the staircase.
0:45:16 > 0:45:20Going through to the kitchen, we've bashed through the side return and
0:45:20 > 0:45:22we've sort of opened up the whole space.
0:45:22 > 0:45:27Initially, this whole area, which has become the kitchen where I'm standing now,
0:45:27 > 0:45:33was actually the outside and there was a window which we knocked through to create a sort of feature
0:45:33 > 0:45:39for Rubin so that he could see what I was doing and I could watch him playing.
0:45:39 > 0:45:42Now what we've done is actually lifted the roof height
0:45:42 > 0:45:45by one and a half stories so that light comes streaming in.
0:45:45 > 0:45:50And then in the middle, I wanted to have an island because I thought it's...
0:45:50 > 0:45:54It's a huge kitchen and I didn't want it to do feel a bit like an ice rink.
0:45:54 > 0:46:00Initially, the kitchen actually ended pretty much where I'm standing now and it was just a tiny dark,
0:46:00 > 0:46:04dingy space, so now it's lovely, it's bright, it's open and that's what we wanted.
0:46:04 > 0:46:08And when you walk out the back door, you're on to the deck, so it feels
0:46:08 > 0:46:12almost like you've extended an extra sort of ten foot beyond the door.
0:46:12 > 0:46:14I love the way it comes out of the house as an
0:46:14 > 0:46:18extenuation of the kitchen, essentially creating another room.
0:46:18 > 0:46:21It's south-west facing and it gets the evening sun and
0:46:21 > 0:46:24it's pleasant just to sit here and have a drink in the evening.
0:46:24 > 0:46:27By adding that side extension, they've been able to create a modern,
0:46:27 > 0:46:33light and practical living area without sacrificing the charms of this house.
0:46:33 > 0:46:38It has put been a lot of stress on Christine and I when we weren't spending that much time together,
0:46:38 > 0:46:43with Rubin coming along and it has been quite trying, but just for the last couple of days
0:46:43 > 0:46:48we seem to be getting our lives back and spending the evenings just chatting in the kitchen.
0:46:48 > 0:46:51It's been a turbulent few months, though.
0:46:51 > 0:46:56When they originally moved in here with baby Rubin, the builders were still hard at work.
0:46:56 > 0:47:00Christine lasted three days before moving in with friends for three weeks.
0:47:00 > 0:47:02It's been worth the wait, though.
0:47:02 > 0:47:06What about their plan to add a fourth bedroom in the loft?
0:47:06 > 0:47:10We did want to do you a loft conversion and we did actually get planning to do that,
0:47:10 > 0:47:14but we were advised that, in the current market, it wasn't really worth doing.
0:47:14 > 0:47:18We'd actually spend about 50,000 and we'd be lucky to get that back.
0:47:18 > 0:47:22Although financial expert Jay kept a tight rein on the costs,
0:47:22 > 0:47:25inevitably, there was a slight overspend.
0:47:25 > 0:47:30The original budget was 150 with the loft conversion and 110 without.
0:47:30 > 0:47:33From a build cost perspective,
0:47:33 > 0:47:37that was pretty much what it was, but there were a lot of additional
0:47:37 > 0:47:41- hidden costs that I didn't take account of.- It was a huge shock.
0:47:41 > 0:47:46Everything cost so much more than we anticipated and we kind of had our fingers burnt with that.
0:47:46 > 0:47:50I think the build has come in at about 120, but to actually
0:47:50 > 0:47:56finance it with the bridging loan and all other costs is about 180 now.
0:47:57 > 0:48:01But will their superb finish be reflected in the valuations
0:48:01 > 0:48:04of two local estate agents? Time to find out.
0:48:06 > 0:48:08It doesn't seem like the same house.
0:48:08 > 0:48:12It's like they've picked up the old house and planted a new one down!
0:48:12 > 0:48:15It's wonderful that they've kept some original features,
0:48:15 > 0:48:17like the fireplace and the corners of the ceiling.
0:48:17 > 0:48:21I think it's crucial in today's market that people see the modern and
0:48:21 > 0:48:24also the Victorian style of these properties are maintained.
0:48:24 > 0:48:27The best bit from me is the kitchen, which has the glass roof.
0:48:27 > 0:48:30It's a great space to have, especially with children,
0:48:30 > 0:48:33with the doors straight on to the deck. Absolutely beautiful.
0:48:33 > 0:48:37The downstairs loo, I think, is absolutely crucial in today's market. It's a must.
0:48:37 > 0:48:39The downstairs toilet idea was brilliant.
0:48:39 > 0:48:42I wouldn't have thought they would be able to fit one in.
0:48:42 > 0:48:46I think subject to cost and obviously planning permission,
0:48:46 > 0:48:49I would certainly carry out the loft extension.
0:48:49 > 0:48:53It's OK to do a loft conversion if you're staying in the property for another ten years,
0:48:53 > 0:48:57but as soon as you do it, you're at a loss because of the costs of doing it.
0:48:57 > 0:49:00You don't make your money back straight away.
0:49:00 > 0:49:01It's the moment of truth.
0:49:01 > 0:49:09Remember, Christine and Jay paid 411,000 at the auction and their total budget has hit £180,000.
0:49:09 > 0:49:13That's 591,000 in total.
0:49:13 > 0:49:15So, what's the house worth now?
0:49:15 > 0:49:18I'd value this property at £600,000.
0:49:18 > 0:49:24The resale valuations in the current climate, I would ascertain would be 575,000 to 600,000.
0:49:24 > 0:49:27Oh, well, only a maximum of £9,000 profit for eight months' work,
0:49:27 > 0:49:30but of course the point of this exercise
0:49:30 > 0:49:33was to create their home and Jay's happy with those figures.
0:49:33 > 0:49:38We haven't lost money and we've... I mean, if anything,
0:49:38 > 0:49:41we've made a tad, and in this market, that's quite encouraging.
0:49:41 > 0:49:44I think we can be happy, really, with what we've done.
0:49:44 > 0:49:50We want to stay here, so hopefully it will go up when all this mess in the economy gets sorted out.
0:49:50 > 0:49:56And in the meantime, they've got a very beautiful family home to enjoy living in.
0:49:59 > 0:50:04Back in the beautiful valleys of Mid Glamorgan in the town of Nantyffyllon,
0:50:04 > 0:50:10local chef and restaurant owner, Dan, had bought this house for £44,000.
0:50:11 > 0:50:16He'd bought a property which also extended into the top floor of the house behind,
0:50:16 > 0:50:20so he would need legal advice about flying freehold issues.
0:50:20 > 0:50:22It also had a damp basement.
0:50:22 > 0:50:26He planned to add this to his existing pair of buy-to-let properties.
0:50:26 > 0:50:31Well, seven months have gone by and from the street, this mid terrace looks unchanged,
0:50:31 > 0:50:36but in the road behind, the colour of its flying freehold section
0:50:36 > 0:50:38now matches the property underneath.
0:50:38 > 0:50:42Inside, the rear bedroom has a new colour scheme as well and
0:50:42 > 0:50:47it's been curtains for the pink bedroom as a new carpet's been laid there.
0:50:47 > 0:50:50But the bathroom looks the same.
0:50:50 > 0:50:53The kitchen has gained an oven and the lounge, uh...
0:50:53 > 0:50:56Well, a pot plant.
0:50:56 > 0:50:59There's not a great deal to show for seven months' work.
0:50:59 > 0:51:04It doesn't look as if it's changed a hell of a lot, but the outside,
0:51:04 > 0:51:07the exterior, there's a lot of work's gone on there. I had a brand new roof.
0:51:07 > 0:51:12There were two chimney breasts here last time, but they had to be taken down.
0:51:12 > 0:51:16There was a lot of damp coming in through there, so rather than mess around, straight, brand new roof
0:51:16 > 0:51:22and sidewalls re-rendered, and then general cleaning up and decorating inside.
0:51:22 > 0:51:26Sensibly, Dan made fixing the leaking roof his number one priority.
0:51:26 > 0:51:31With the top of the house watertight, the damp in the basement was next on the list.
0:51:31 > 0:51:36Right, this is the room I've spent the most money on inside.
0:51:36 > 0:51:38I've had the walls injected,
0:51:38 > 0:51:43the wall's been tanked to stop any damp penetrating through and,
0:51:43 > 0:51:50obviously, they've been re-skimmed and repainted and now it's a nice room in the house.
0:51:50 > 0:51:54Dan paid £44,000 on auction day for this multilevel property.
0:51:54 > 0:51:59Although his bank was happy to finance the purchase, he could have had problems
0:51:59 > 0:52:05if he wanted to sell due to the flying freehold, so he got his solicitor on the case.
0:52:05 > 0:52:09Obviously, the flying freehold could have been a bit of an issue,
0:52:09 > 0:52:12but she's sorted all that out with an indemnity policy,
0:52:12 > 0:52:17- so I'm quite happy that... That it could be sold quite easily. - Well, that's reassuring.
0:52:17 > 0:52:23Dan was very sensible to get that clarification, but the plan at the moment is to rent it out.
0:52:25 > 0:52:31Upstairs, Dan has divided the front bedroom to gain an next room to let out.
0:52:31 > 0:52:35As you remember, this was the original entrance into the bedroom,
0:52:35 > 0:52:42but it was a real large bedroom so, I mean, all I've pretty much done is split the room into two
0:52:42 > 0:52:45and this was only really done for the financial gain.
0:52:45 > 0:52:49An extra room, an extra £10 a week possibly,
0:52:49 > 0:52:55and I mean over a year £520, it didn't even cost me £400 to do.
0:52:55 > 0:52:57No, just a bit of stud walling.
0:52:57 > 0:53:01Remember, Dan is qualified to do electrical work and has had help
0:53:01 > 0:53:06from his brother and his mates, so how much did he have to spend?
0:53:06 > 0:53:09The budget has gone pretty good, really.
0:53:09 > 0:53:14The roof cost me somewhere about six two with the outside work, but then
0:53:14 > 0:53:19the rest of it inside, maybe £2,000, £3.000. I mean, it's not big money.
0:53:19 > 0:53:22There just aren't enough hours in the day for Dan.
0:53:22 > 0:53:26Apart from this house, he's got two other buy-to-let properties,
0:53:26 > 0:53:30plus he's got his restaurant and he's been back to auction again.
0:53:30 > 0:53:32How does he find the time?
0:53:32 > 0:53:33With the restaurant,
0:53:33 > 0:53:37it's been always long hours in the restaurant, but to fit this in in between then,
0:53:37 > 0:53:42any time off I get, we come up here and we do the work, but we'd work through the night.
0:53:42 > 0:53:49People say I'm a workaholic, but I enjoy it, so the hours don't matter so much.
0:53:49 > 0:53:52Well, maybe for Dan, but his girlfriend's not quite so sure.
0:53:52 > 0:53:57Me and my girlfriend, we don't have a lot of time together at the moment and she isn't best pleased.
0:53:57 > 0:54:03We have bought a house since this one for ourselves, but we haven't moved in there because of
0:54:03 > 0:54:09the amount of work that I've had to do up here, so at the moment we're living in a caravan, so she's...
0:54:09 > 0:54:13She's pretty keen on me to come back home and get that house finished now!
0:54:13 > 0:54:14Well, who can blame her?
0:54:14 > 0:54:18But the good news is that Dan has already got a tenant lined up
0:54:18 > 0:54:22for this house, so he should be able to relax a little more now.
0:54:23 > 0:54:26Let's hear what two local estate agents make
0:54:26 > 0:54:31of this split level property with its flying freehold.
0:54:33 > 0:54:35Confusion is my first impression of the property!
0:54:35 > 0:54:38From the front it looks like a miner's cottage and
0:54:38 > 0:54:40it's a little bit of a Tardis.
0:54:40 > 0:54:42It goes back and back and further back.
0:54:42 > 0:54:45There's been a conversion of a bedroom in this property
0:54:45 > 0:54:49since I was here last, where a room has been split into two.
0:54:49 > 0:54:52The problem with that is it's created a room without a window.
0:54:52 > 0:54:57For use as a bedroom it could cause issues with the Fair Rents Officer because it's not habitable
0:54:57 > 0:54:59because of no natural light.
0:54:59 > 0:55:01The standard of the property is fair.
0:55:01 > 0:55:05It's not to the standard that I would put it on and sell it on the open market.
0:55:05 > 0:55:08For a rental property, it's reasonable.
0:55:08 > 0:55:12Dan always intended to rent it out, so that's OK.
0:55:12 > 0:55:14But I wonder how much the property is now worth?
0:55:14 > 0:55:21Remember, he paid £44,000 at the auction and estimates his budget around 9,000.
0:55:21 > 0:55:26This property being sold as a freehold property with the flying freehold problems would mean
0:55:26 > 0:55:31there would be very few, if any, mortgages available, therefore you're awaiting cash buyers.
0:55:31 > 0:55:36In that situation, I wouldn't expect to sell this in today's market for any more than 50,000.
0:55:36 > 0:55:41In the current market, if all the legal problems were all sorted out and it was very clear
0:55:41 > 0:55:45from the outset what we were marketing, I would aim to achieve between £60,000 and £65,000.
0:55:45 > 0:55:52Well, Dan's solicitor has sorted out those flying freehold issues, so it could be 65,000.
0:55:52 > 0:55:54Is Dan happy with that?
0:55:54 > 0:55:57Yeah, well, that's... It's probably about right, really.
0:55:57 > 0:56:01But as I said in the beginning, it's the rental, it's not...
0:56:01 > 0:56:02It wasn't bought for sale.
0:56:02 > 0:56:05Yeah, I think the market for this property is for rent
0:56:05 > 0:56:11and I would expect to achieve in the region of £450 per calendar month to rent this property.
0:56:11 > 0:56:15Reasonable rental price in the current market, I would hope to achieve
0:56:15 > 0:56:17in the region of 445 to 450 per calendar month.
0:56:17 > 0:56:23Well, I'm quite surprised at that because I've already found someone who's paying 650.
0:56:23 > 0:56:30For a workaholic Dan, this is the third buy-to-let property to add to his portfolio, so what next?
0:56:30 > 0:56:34Another trip to the auction, a well earned holiday or will it be back to the kitchen?
0:56:36 > 0:56:41I've... I have to go back and I have to finish my own house now. I don't have a choice.
0:56:41 > 0:56:44I think my girlfriend would kill me if we didn't... If we hadn't...
0:56:44 > 0:56:46If we don't sort that out now.
0:56:49 > 0:56:52We hope you've picked up plenty of useful hints and tips on today's show.
0:56:52 > 0:56:57And we'll have plenty more handy homebuyer advice for you next time on Homes Under The Hammer.
0:56:57 > 0:56:59- See you then!- Goodbye.- Goodbye.
0:57:02 > 0:57:07Subtitles by Red Bee Media Ltd
0:57:07 > 0:57:11E-mail subtitling@bbc.co.uk