0:00:02 > 0:00:03An Englishman's home is his castle.
0:00:03 > 0:00:06Yes, whether it's a small flat or a large house,
0:00:06 > 0:00:09most people take pride in where they live.
0:00:09 > 0:00:12But the starting point is to find the right property
0:00:12 > 0:00:15and one way to do that is to buy your home under the hammer.
0:00:41 > 0:00:44Well, renovating a property is certainly a challenge,
0:00:44 > 0:00:47especially if it's something you haven't done before.
0:00:47 > 0:00:51It can also bring you financial reward if you keep on top of things.
0:00:51 > 0:00:55So what challenges faced today's buyers?
0:00:56 > 0:01:00This cottage in Cornwall is so good it's jumping out at me.
0:01:06 > 0:01:10There didn't appear to be much at this two-bedroom flat in Hampshire,
0:01:10 > 0:01:12but looks can be deceiving.
0:01:12 > 0:01:15I knew it was going to be spacious up here.
0:01:17 > 0:01:20And that old auction tip about buying the worst property
0:01:20 > 0:01:24on the best street really comes into its own in Kent.
0:01:24 > 0:01:26Anyway, retain an open mind, I say.
0:01:28 > 0:01:31All these properties went to auction. We'll find out
0:01:31 > 0:01:33who bought them and what they paid for them
0:01:33 > 0:01:35when they went under the hammer.
0:01:38 > 0:01:41Welcome to beautiful Cornwall
0:01:41 > 0:01:45and revel in all that's lovely in this world.
0:01:45 > 0:01:48Spectacular countryside to calm the senses,
0:01:48 > 0:01:53wildlife to enrich the landscape and some very attractive property.
0:01:53 > 0:01:55And while the latter may not be free,
0:01:55 > 0:01:57it's a lot more affordable than you might think.
0:01:57 > 0:02:01So you could imagine property round here is extremely desirable
0:02:01 > 0:02:04and this is the sort of thing that everyone wants to buy.
0:02:04 > 0:02:06It's a two-bedroom stone cottage,
0:02:06 > 0:02:11at a guide price of 75,000 quid, which seems incredibly cheap.
0:02:11 > 0:02:13Let's take a look inside.
0:02:14 > 0:02:19Cute and cottagey are two words that would have many people racing
0:02:19 > 0:02:23to the auction rooms that offer them, but at just £75,000
0:02:23 > 0:02:26there must be something I'm not seeing here.
0:02:26 > 0:02:30First thing I notice, reasonable height ceilings, which is good,
0:02:30 > 0:02:33but also it looks, to me, like a work in progress.
0:02:33 > 0:02:35New plasterboard on the ceiling, bits of flooring here.
0:02:35 > 0:02:39The old fuse box back there looks like it's been recently replaced,
0:02:39 > 0:02:42so somebody's obviously started this project and,
0:02:42 > 0:02:43for whatever reason, stopped.
0:02:43 > 0:02:47Kitchen there, this is your main room. Nice wood burning stove,
0:02:47 > 0:02:50but something immediately, horribly wrong.
0:02:50 > 0:02:52There's a staircase right in the middle.
0:02:52 > 0:02:55You have got that room over there, like a lounge area,
0:02:55 > 0:02:59another area here which, if knocked through, would be wonderful.
0:02:59 > 0:03:01Bit of a big job, but I think it's worth it.
0:03:01 > 0:03:05You've got to get this staircase, you've got to put it...
0:03:05 > 0:03:08probably over here, to create a really nice open plan area,
0:03:08 > 0:03:11because then some of the features can start to be shown off.
0:03:11 > 0:03:15Things like... Look at the reveals on the windows here, really thick.
0:03:15 > 0:03:19This is a stone-built cottage, it's lovely. Make the most of it.
0:03:19 > 0:03:21Big job, but not insurmountable.
0:03:21 > 0:03:22'The cottage isn't listed,
0:03:22 > 0:03:26'which means you can make this layout really work for you.
0:03:26 > 0:03:31'If it was up to me, moving the stairs would be just the start.'
0:03:32 > 0:03:35Well, not surprisingly, the kitchen in a bit of a state.
0:03:35 > 0:03:36It's not a bad-sized space,
0:03:36 > 0:03:38but again it's almost like
0:03:38 > 0:03:41I'd want to get rid of all the walls in the bottom part of this house.
0:03:41 > 0:03:44This wall here is huge - it really takes up so much space -
0:03:44 > 0:03:46and it gets worse when you go that way
0:03:46 > 0:03:50cos you've got a separate entrance to the property
0:03:50 > 0:03:52and a downstairs loo.
0:03:52 > 0:03:54It's higgledy-piggledy,
0:03:54 > 0:03:56like this barn that's just been added to over the years.
0:03:56 > 0:04:00And in terms of general state of repair, well, I think it's...
0:04:06 > 0:04:12I'm beginning to see why this cottage is guided at just £75,000.
0:04:12 > 0:04:15Upstairs is pretty well laid out with two good-sized bedrooms
0:04:15 > 0:04:19and the bathroom, but if you're considering moving that staircase
0:04:19 > 0:04:22you'd have to rethink the layout up here.
0:04:22 > 0:04:24What does a local estate agent think needs doing
0:04:24 > 0:04:26to get this property right?
0:04:26 > 0:04:29I believe the expression is TLC.
0:04:29 > 0:04:33It does need quite a bit of bringing up to date, obviously decor,
0:04:33 > 0:04:36wiring, plumbing, bathroom, kitchen,
0:04:36 > 0:04:39but it's stuff that can be done at a reasonable cost because
0:04:39 > 0:04:43it appears to be quite sound and with perhaps six months' good work
0:04:43 > 0:04:45I think the owners would be very pleased -
0:04:45 > 0:04:48if they wanted to sell it on they'd be quite happy.
0:04:48 > 0:04:52If this cottage was bought for around that guide price of 75,000
0:04:52 > 0:04:55and just renovated as it is, what could it be worth once finished?
0:04:55 > 0:04:59When it's renovated, it's going to take them a little bit of time,
0:04:59 > 0:05:04but I do feel that you'd get £145,000 even in today's market for it.
0:05:06 > 0:05:10I think you can see the potential that this little cottage has,
0:05:10 > 0:05:12but it really needs someone just to come along,
0:05:12 > 0:05:16rip it out and start again because it really is, at the moment,
0:05:16 > 0:05:18a bit of a hodgepodge. However, having said that,
0:05:18 > 0:05:22I don't think the guide price would have been anything like 75,000 quid
0:05:22 > 0:05:24if it had been all together.
0:05:24 > 0:05:28Let's see who fancied the challenge when it went under the hammer.
0:05:28 > 0:05:32Lot one is the Corner House, South Road, Stithians.
0:05:32 > 0:05:34The guide is 75,
0:05:34 > 0:05:36who's going to kick us off at the guide?
0:05:36 > 0:05:38Nice and simple, 75 straight in.
0:05:38 > 0:05:41Who will say 75? 75 I've got on my right.
0:05:41 > 0:05:43At 75. That's early doors. 75. At 75.
0:05:43 > 0:05:46At 75,000 on my right hand side. 78.
0:05:46 > 0:05:5178? 77. OK, at 77. Let's try to get on the evens if we can. 80?
0:05:51 > 0:05:54Can I go to 80 with somebody? 80, we've got it, we're away. At 80.
0:05:54 > 0:05:57At 80. 82.
0:05:57 > 0:05:5984.
0:05:59 > 0:06:0186. 88.
0:06:01 > 0:06:0490. I'm going to concentrate on the left for a minute. 92, sir?
0:06:04 > 0:06:0692. 94.
0:06:06 > 0:06:0996 I've got stood behind you. At 96.
0:06:09 > 0:06:1298. 98. One.
0:06:12 > 0:06:14102. There's one stood against you.
0:06:14 > 0:06:18I'll come back. You have a think. One I've got. One I've got. At 100.
0:06:18 > 0:06:20At 100. 102. 104.
0:06:20 > 0:06:22106, straight back.
0:06:22 > 0:06:24108? 108.
0:06:24 > 0:06:27108. Back to these two. 108 and a half.
0:06:27 > 0:06:29109.
0:06:29 > 0:06:30109 and a half.
0:06:30 > 0:06:32110, the young lady there.
0:06:32 > 0:06:37110. 110 and a half. 111.
0:06:37 > 0:06:39111 and a half. 112.
0:06:39 > 0:06:45112. 112 and a half. 112 and a half.
0:06:45 > 0:06:47You've seen yourself there, haven't you?
0:06:47 > 0:06:51There, tomorrow you'll be thinking, would 500 have done it? 113?
0:06:51 > 0:06:55113. 113 and a half. 113 and a half.
0:06:55 > 0:06:58113 and a half first time.
0:06:58 > 0:07:02113 and a half second time.
0:07:02 > 0:07:05114. 114 I've got. 114.
0:07:05 > 0:07:08At 114. Half. 114 and a half.
0:07:08 > 0:07:13115. At 115. At 115. And a half?
0:07:13 > 0:07:15And 16.
0:07:15 > 0:07:19At 116. At 116. At 116 on my left.
0:07:19 > 0:07:22At 116. First time then, the young lady here at 116.
0:07:22 > 0:07:25The second time. At 116 you're in?
0:07:25 > 0:07:26I won't take advantage.
0:07:26 > 0:07:31Saturday night, maybe! But 116, last chance then. It's on my left.
0:07:31 > 0:07:33Here we go at 116 and out.
0:07:33 > 0:07:37116, miss, madam, thank you.
0:07:37 > 0:07:40'The buyers on the day were Leanne and Mike.
0:07:40 > 0:07:42'Together with their baby, Farah,
0:07:42 > 0:07:45'I met them at the cottage to find out their plans.'
0:07:45 > 0:07:48- Lovely to meet you both. Congratulations.- Thank you.
0:07:48 > 0:07:51You've got yourself a nice little cottage. Why did you want to buy it?
0:07:51 > 0:07:54As you say, it's a lovely little cottage, really nice area
0:07:54 > 0:07:57and very much enticed by the guide price of £75,000,
0:07:57 > 0:08:00which got us through the door to have a look at the cottage.
0:08:00 > 0:08:04You walked in and thought, "Yeah, we could do something with this"?
0:08:04 > 0:08:07Yeah, we were thinking of living here, but on reflection
0:08:07 > 0:08:10it's a little too small for us, so we'll probably put it back
0:08:10 > 0:08:14- on the open market again or rent it out.- What we saw is the huge amount
0:08:14 > 0:08:18of potential here, so that's what really enticed us to buy it, I think.
0:08:20 > 0:08:22'Mike and Leanne currently live in navy quarters,
0:08:22 > 0:08:25'but with a recent addition to the family
0:08:25 > 0:08:27'they're keen to move somewhere bigger.
0:08:27 > 0:08:30'However, now they have decided not to live here,
0:08:30 > 0:08:34'they see this as an opportunity to make extra income.'
0:08:35 > 0:08:37What do you do in the navy?
0:08:37 > 0:08:40Well, Mike's actually a civilian now, he left in December.
0:08:40 > 0:08:43- Yeah.- Because of baby's arrival, and I'm a warfare officer.
0:08:43 > 0:08:47I sub specialise in hydrography, meteorology and oceanography.
0:08:47 > 0:08:51- Wow!- I'll be basically forecasting the weather for the aircraft.
0:08:51 > 0:08:55- OK.- And until I can find something else, this will be my full time job.
0:08:55 > 0:08:58- So you've left the navy completely now?- Absolutely, yeah.
0:08:58 > 0:09:01The thought of going away and leaving Farah...
0:09:01 > 0:09:04You go away for six, seven months at a time, you come home
0:09:04 > 0:09:08to a different child and that's not something I really wanted.
0:09:08 > 0:09:12So you're going to be supervising the projects and being a house dad?
0:09:12 > 0:09:15Doing a lot of work as well because Leanne's still on maternity leave.
0:09:15 > 0:09:19- OK.- Just before I left the navy I did a plastering course.- Oh!
0:09:19 > 0:09:21As you can see, there's quite a bit of plastering to be done.
0:09:21 > 0:09:25- Yeah!- And there's also a lot of rendering to be done on the outside
0:09:25 > 0:09:29- because pebble dash is... We don't like it.- Not our choice.
0:09:29 > 0:09:32So I'll be rendering over that and giving it a smooth finish,
0:09:32 > 0:09:34make it look a lot nicer and give it...
0:09:34 > 0:09:38There's also quite a damp problem in the property as well,
0:09:38 > 0:09:41so all this plaster is going to need to be chipped back and tanked.
0:09:41 > 0:09:45I'll be doing all the tanking, so just basically all the plaster
0:09:45 > 0:09:49in here on the bottom level is all just going to come off the wall.
0:09:49 > 0:09:52So tell me all about your experience so far.
0:09:52 > 0:09:56Property-wise, we've got, what is it? Nine, ten rental properties
0:09:56 > 0:10:00that we've just accumulated, often bought at auction, refurbished them
0:10:00 > 0:10:03and then rented them out. Just basically love property,
0:10:03 > 0:10:06usually old properties, Victorian, taking them and making them
0:10:06 > 0:10:10- beautiful again.- We've got quite a bit of experience with renovation.
0:10:10 > 0:10:14This is our biggest project so far because we're moving the stairs.
0:10:14 > 0:10:16We tend to do low-level refurbishment.
0:10:16 > 0:10:20We're doing a lot of "we-ing", whereas we tend to call my father,
0:10:20 > 0:10:23and it just tends to be a, "Dad, we've got a property,
0:10:23 > 0:10:26"can you come and do it up for us?" So it sounded good, didn't it,
0:10:26 > 0:10:30- with all the "we-ing", but not quite so realistic!- No.- We're learning.
0:10:30 > 0:10:32Fantastic your dad is there to do that.
0:10:32 > 0:10:34What does he do when he's not helping you?
0:10:34 > 0:10:38Well, he's actually in Yorkshire, which is 300 miles up the road!
0:10:38 > 0:10:44- Wow!- But, yeah, he's semi-retired. My mum's got multiple sclerosis,
0:10:44 > 0:10:47so they have a lot of time off, so she'll come up, look after baby.
0:10:47 > 0:10:51Not much time off, because generally helping us do the projects.
0:10:51 > 0:10:55- Wow! What a great resource to have! - It's absolutely fantastic.
0:10:55 > 0:10:57- There's nothing he can't do. - Absolutely.
0:10:57 > 0:11:01Having our own baby, we're hoping that she'll stop the phone calls
0:11:01 > 0:11:04and the dependence on mum and dad by the age of 31, but we live in hope!
0:11:04 > 0:11:09In fact, it seems that Farah is picking up a few skills of her own
0:11:09 > 0:11:13- by watching mum and dad. - I think it'll be the third site
0:11:13 > 0:11:16she's been on since she was born. We actually bought one property
0:11:16 > 0:11:18when she was two days old, so it's been quite busy.
0:11:18 > 0:11:21She's learning how to paint skirting boards at the moment,
0:11:21 > 0:11:24just the perfect height! With crayons, though.
0:11:24 > 0:11:27- Yes! Absolutely.- We don't really strap on a paintbrush!
0:11:27 > 0:11:29Moving on to gloss paint later.
0:11:29 > 0:11:32This couple, with the help of Leanne's dad, of course,
0:11:32 > 0:11:34seem to have a great deal of experience,
0:11:34 > 0:11:36but that didn't stop them
0:11:36 > 0:11:40from nearly making a huge mistake when it came to the auction.
0:11:40 > 0:11:41- Yes.- Saturday Night Fever!
0:11:41 > 0:11:44I'm notoriously not brilliant at timekeeping,
0:11:44 > 0:11:47outside of my job where, of course, I have to be on time, but...
0:11:47 > 0:11:51- And you were guilty on this occasion, too...- I hold my hands up.
0:11:51 > 0:11:53In that I was in bed reading the legal pack half an hour
0:11:53 > 0:11:57before the auction started and it was a 20-minute drive away
0:11:57 > 0:12:00- and we didn't know where it was and it was the first lot.- Right.
0:12:00 > 0:12:04- It was all a bit tight.- So at what point did you walk into the room?
0:12:04 > 0:12:06Just before the auction began,
0:12:06 > 0:12:10it was a couple of minutes late starting, fortunately.
0:12:10 > 0:12:13- You were reading the legal pack half an hour before.- Yes.
0:12:13 > 0:12:17- First time or just a refresher? - My solicitor had perused it for me,
0:12:17 > 0:12:20but I was reading it for the first time and was engrossed.
0:12:20 > 0:12:22Then I looked up and saw the time
0:12:22 > 0:12:24and it was half an hour before the auction began
0:12:24 > 0:12:27so a little bit flustered by the time I got there!
0:12:27 > 0:12:28Bit of a mad dash to Redruth.
0:12:28 > 0:12:31Nothing like leaving it to the last minute,
0:12:31 > 0:12:33but it all worked out in the end.
0:12:33 > 0:12:35Although they don't plan to make this their new family home,
0:12:35 > 0:12:39that's not stopping them planning a thorough renovation.
0:12:39 > 0:12:43We'll be looking in the region of 12,000 to 15,000 for the project.
0:12:43 > 0:12:45When we first looked at the place
0:12:45 > 0:12:48we didn't think of moving the stairs, but now we've looked
0:12:48 > 0:12:52at the property and at the layout of the floor and it's got to be done.
0:12:52 > 0:12:54So we've pushed our budget by a few more thousand,
0:12:54 > 0:12:58but it just really will enhance the property so much more.
0:12:58 > 0:13:02And keeping as many features? These big reveals on the windows
0:13:02 > 0:13:05- and the thick walls, all gorgeous, isn't it?- Absolutely.
0:13:05 > 0:13:08We want to stick to the cottage style as far as we can,
0:13:08 > 0:13:11so what we do will hopefully be very much in keeping with the cottage
0:13:11 > 0:13:14- and we'll keep all those features. - And how long to get it sorted?
0:13:14 > 0:13:18Three to four months, give or take. Yeah, that's the plan.
0:13:18 > 0:13:21It also depends how long Dad stays on site and is willing
0:13:21 > 0:13:25to come down and do up properties or else we're going to have to learn
0:13:25 > 0:13:29- to do it ourselves, God forbid! - An important part of your...
0:13:29 > 0:13:32- Strategy, isn't he?- Vital. - There's just nothing he can't do.
0:13:32 > 0:13:36- Good luck with it. Congratulations. - Thank you very much.
0:13:36 > 0:13:40- I'll look forward to seeing how you get on.- Yes!- So do we!
0:13:40 > 0:13:45So Mike and Leanne joining forces with Leanne's dad
0:13:45 > 0:13:47to take on another development project,
0:13:47 > 0:13:50but there is a lot of work to do to sort this place out
0:13:50 > 0:13:52and, as well as looking after the baby,
0:13:52 > 0:13:54Mike is going to have a lot on his hands.
0:13:54 > 0:13:58It's a challenge. Will there be choppy waters ahead?
0:13:58 > 0:14:00You can find out later in the show.
0:14:04 > 0:14:07This is the market town of Fareham in Hampshire.
0:14:07 > 0:14:10The town was well known for producing bricks, tiles
0:14:10 > 0:14:14and chimney pots. In fact, the Royal Albert Hall in London
0:14:14 > 0:14:17is made from Fareham red bricks.
0:14:17 > 0:14:20Now its position between Portsmouth and Southampton
0:14:20 > 0:14:23makes it a great base for commuters.
0:14:24 > 0:14:26I'm here to see a first floor maisonette
0:14:26 > 0:14:29which is about a mile from Fareham town centre.
0:14:29 > 0:14:32Now, it doesn't have the most attractive frontage,
0:14:32 > 0:14:34as it's set above this taxi firm.
0:14:34 > 0:14:37That also might also have some noise implications late at night
0:14:37 > 0:14:39with all these shops along here,
0:14:39 > 0:14:43but it's got two bedrooms and it had a guide price of just 60,000.
0:14:43 > 0:14:48The flat's 1970s architecture might not appeal,
0:14:48 > 0:14:51but let's give it a chance and look inside.
0:14:51 > 0:14:55Even though this is described as a first floor maisonette
0:14:55 > 0:14:58there is actually some extra square footage downstairs,
0:14:58 > 0:15:02but you have to access it through this strange uppity-down landing,
0:15:02 > 0:15:04which leads to this huge utility area.
0:15:04 > 0:15:08This is the same size as a kitchen in most houses
0:15:08 > 0:15:11and you've got an enormous cupboard in there.
0:15:11 > 0:15:17This really is just bonus space because the main flat is upstairs.
0:15:17 > 0:15:22There's plenty of space down here with a porch, a downstairs toilet
0:15:22 > 0:15:26and your own large garden. There's even a garage at the bottom of it
0:15:26 > 0:15:29so there's off-street parking, too.
0:15:29 > 0:15:32The only downside is that you're overlooked
0:15:32 > 0:15:36by a window in the taxi firm, but it's a small price to pay
0:15:36 > 0:15:40if the rest of the flat has as much as this to offer.
0:15:40 > 0:15:45You know what? I knew it was going to be spacious up here!
0:15:45 > 0:15:47You've got two really good-sized double bedrooms there
0:15:47 > 0:15:51and, of course, through here a fantastic lounge.
0:15:51 > 0:15:55I think this would have been an outside wall originally
0:15:55 > 0:15:57and this here was an extension,
0:15:57 > 0:16:00although it does feel a little bit springy, I have to say, underfoot.
0:16:00 > 0:16:02I might get that looked at.
0:16:02 > 0:16:05But you could house a family in this flat.
0:16:05 > 0:16:08It's really big, you've got this lovely floor to ceiling glass.
0:16:08 > 0:16:10On a summer's day
0:16:10 > 0:16:14you're going to get lots of lovely natural light coming through there.
0:16:14 > 0:16:17I've got to say, the space here really is selling this flat to me.
0:16:19 > 0:16:23There's definitely work to do here. The carpets and decor need updating.
0:16:23 > 0:16:27There are polystyrene tiles on some of the ceilings
0:16:27 > 0:16:30which should be removed for fire safety reasons.
0:16:30 > 0:16:33Some of the electrics are surface-mounted,
0:16:33 > 0:16:35so ideally you'd want to chase them into the walls.
0:16:35 > 0:16:37But after a bit of modernisation
0:16:37 > 0:16:40I could really start to warm to this place.
0:16:40 > 0:16:45One small quibble, though. This kitchen is actually smaller
0:16:45 > 0:16:51than the utility room downstairs, and the bathroom - it's small,
0:16:51 > 0:16:56there's no natural light, there's a lemon suite and it's quite dark.
0:16:56 > 0:16:58It looks like the window was blocked up
0:16:58 > 0:17:00when the property was first extended,
0:17:00 > 0:17:04but the good news is that this flat is sold with freehold title,
0:17:04 > 0:17:06so subject to planning, you could do what you like.
0:17:06 > 0:17:10Although you're responsible for the repair and maintenance
0:17:10 > 0:17:13of the whole building, you do get the ground rent
0:17:13 > 0:17:15from the taxi company downstairs.
0:17:17 > 0:17:20What does a local estate agent think of the place and its neighbours?
0:17:20 > 0:17:24The implications of the property being above the parade of shops
0:17:24 > 0:17:26are mainly to do with the mortgage lenders.
0:17:26 > 0:17:30They're slightly restricted on the lending they'll do at the moment
0:17:30 > 0:17:32and there are fewer lenders in the marketplace
0:17:32 > 0:17:35that will lend on property above commercial premises.
0:17:35 > 0:17:39To a cash buyer looking for a rental investment
0:17:39 > 0:17:42that £60,000 guide price could be attractive.
0:17:42 > 0:17:45It is a good rental area here.
0:17:45 > 0:17:50Probably the rental side of things would be round about £600 a month,
0:17:50 > 0:17:52but obviously it would need the work done
0:17:52 > 0:17:55before the property could be rented out.
0:17:55 > 0:17:59If you bought this place at the £60,000 guide price and spent, say,
0:17:59 > 0:18:0410,000 to 20,000 on a complete renovation, you could be looking
0:18:04 > 0:18:06at around a 9% rental return.
0:18:06 > 0:18:10But could you make any money if you decided to sell?
0:18:10 > 0:18:13Once the renovations have been completed on the property
0:18:13 > 0:18:17I would suggest a marketing price of round about 100,000 in the current climate.
0:18:18 > 0:18:21It's not the prettiest of maisonettes and some buyers
0:18:21 > 0:18:23may be put off because it's above a taxi firm,
0:18:23 > 0:18:27but you do have a fair amount of square footage for your money here
0:18:27 > 0:18:33and the bonus of the freehold title. So who fell for this Fareham flat?
0:18:33 > 0:18:34Let's find out at the auction.
0:18:37 > 0:18:39Lot number six in your catalogue,
0:18:39 > 0:18:42number 51 Fairford Avenue, Fareham, Hampshire.
0:18:42 > 0:18:45I'm going to start the bidding on this one, ladies and gentlemen,
0:18:45 > 0:18:50at just £50,000. 50 I have, straight away at the back.
0:18:50 > 0:18:5151 I have. And two, sir?
0:18:51 > 0:18:5452. And three?
0:18:54 > 0:18:5954's bid. 55 here. 56. And seven.
0:18:59 > 0:19:0258. No? Shake of the head. 57 here.
0:19:02 > 0:19:05I'm looking for 58. 58,000, new bidder.
0:19:05 > 0:19:0959. 60? 60's bid. 61?
0:19:09 > 0:19:12And two? 62,000.
0:19:12 > 0:19:1563 here in the front. 64,000's bid.
0:19:15 > 0:19:2065 I have. No? A shake of the head. It's 65,000 here.
0:19:20 > 0:19:24Looking for 66 elsewhere in the room.
0:19:24 > 0:19:29New bid at £66,000. 67 I have.
0:19:29 > 0:19:3368. 69. 70?
0:19:33 > 0:19:3670,000's bid. 71 seated.
0:19:36 > 0:19:4172 on the right hand side. 73 I have here.
0:19:41 > 0:19:4474,000 directly in front of me.
0:19:44 > 0:19:4675? No? Give you a half?
0:19:46 > 0:19:5074 and a half. 75,000 I have to come back.
0:19:50 > 0:19:52Shaking his head.
0:19:52 > 0:19:56£75,000 with you, sir. I'll take 500 from anywhere else in the room.
0:19:56 > 0:20:02£75,000, then, I have for the first time. 75,000 for the second.
0:20:02 > 0:20:0675,000 the third and the final time.
0:20:06 > 0:20:09Your property, sir. Your number, please? Congratulations.
0:20:09 > 0:20:14For £75,000 the new owner of that two-bedroom flat is Ian.
0:20:14 > 0:20:17He lives just a few yards down the road
0:20:17 > 0:20:23so is very familiar with the area. As a building services engineer
0:20:23 > 0:20:27he should know a thing or two about how to renovate it, as well.
0:20:27 > 0:20:31But one thing he's never done before is visit a property auction.
0:20:31 > 0:20:35Ian, congratulations. I must say you looked very smart
0:20:35 > 0:20:38- in your suit and tie on auction day. - I'm not experienced at going
0:20:38 > 0:20:43to auctions, but I thought if I went looking like I meant business
0:20:43 > 0:20:47and bidded without hesitation that it may work to my advantage.
0:20:47 > 0:20:50- What was your top limit? - My top limit was 80,000.
0:20:50 > 0:20:54- If it got to 80 I was going to stop. - So 5K under, that's pretty good.
0:20:54 > 0:20:56- 5K under is pretty good. - I've got to say,
0:20:56 > 0:21:00it isn't everybody's choice to buy a flat over a taxi rank.
0:21:00 > 0:21:04- That obviously hasn't worried you. - No, it doesn't. I talked about that
0:21:04 > 0:21:09and it's not actually a taxi rank as such, it's just an office
0:21:09 > 0:21:12where they do their telephone bookings from
0:21:12 > 0:21:13and we did determine
0:21:13 > 0:21:16that there wasn't hundreds of cabs coming in and out,
0:21:16 > 0:21:18at all hours of the day and night.
0:21:18 > 0:21:21You know this area better than anybody. Is it noisy at night?
0:21:21 > 0:21:23- Will that be a problem? - I don't think so.
0:21:23 > 0:21:27It's quite a busy road during the day, but it quietens down at night
0:21:27 > 0:21:31and we face on to it ourselves and we don't have a problem.
0:21:31 > 0:21:34Knowing the area put Ian in a much stronger position
0:21:34 > 0:21:36when it came to the auction.
0:21:36 > 0:21:40For the time being at least, he's planning to rent this flat out,
0:21:40 > 0:21:44so what will he do to bring it up to scratch?
0:21:44 > 0:21:47All the fixtures and fittings in the whole building are coming out,
0:21:47 > 0:21:51possibly even the central heating which I believe works,
0:21:51 > 0:21:54but could be a bit dated. New kitchen and new bathroom.
0:21:54 > 0:21:57I've noticed that the loft access hatch is in the bathroom,
0:21:57 > 0:22:01as was ours at home, and we'll put a sun pipe, hopefully, in the roof
0:22:01 > 0:22:04to bring some natural light into the bathroom
0:22:04 > 0:22:07and then relocate the hatch into the landing.
0:22:07 > 0:22:11What sort of budget have you got to spend on this place?
0:22:11 > 0:22:13In the region of 15,000 to 20,000.
0:22:13 > 0:22:16That's quite a healthy budget for the work.
0:22:16 > 0:22:20Yeah. It's not going to be designer. It's just going to be a clean,
0:22:20 > 0:22:26tidy, bright, pleasant, carpeted flat for someone to come and live in.
0:22:26 > 0:22:30He's hoping to take no more than two or three months to do all the work,
0:22:30 > 0:22:35but what then? Is mild-mannered Ian cut out for the role of landlord?
0:22:35 > 0:22:39Yeah, I have one other property,
0:22:39 > 0:22:43which is a three-bedroom terraced house in Fareham town.
0:22:43 > 0:22:47I bought that about four years ago and had a horrendous experience.
0:22:47 > 0:22:51The problems I had were two-edged. I had problems with the tenant who,
0:22:51 > 0:22:54unfortunately, lost his job and couldn't pay the rent,
0:22:54 > 0:22:58and also I had horrendous problems with the letting agent
0:22:58 > 0:23:02who I employed to deal with the letting, not being experienced in it.
0:23:02 > 0:23:06So now I do all that myself and do the contract
0:23:06 > 0:23:08and deal with all the paperwork.
0:23:08 > 0:23:11- There's no stopping you now. - Well, I don't know.
0:23:11 > 0:23:14Maybe just the finances! Maybe in the next five years
0:23:14 > 0:23:17another place or something. I'm not really intending to be
0:23:17 > 0:23:21a property entrepreneur, developer, whatever you call it.
0:23:21 > 0:23:25- Somewhere to invest your money and get a great return. - Yes. Better than the bank.
0:23:25 > 0:23:27This really is it for you?
0:23:27 > 0:23:30I believe so, especially if I'm considering it over ten years.
0:23:30 > 0:23:32Ian, good luck, lovely to meet you.
0:23:32 > 0:23:35- Thank you very much. - Well done. Thank you.
0:23:35 > 0:23:39Ian's certainly bought in an area that he was familiar with because
0:23:39 > 0:23:41he practically lives opposite!
0:23:41 > 0:23:45I think he's made a pretty good investment as long as he keeps this
0:23:45 > 0:23:48for a good while because in the current climate letting this will
0:23:48 > 0:23:53give him a higher return than if his money was just stuck in a bank,
0:23:53 > 0:23:57but if Ian ever has to sell this property I think he may struggle
0:23:57 > 0:24:01to get a buyer and that's just because it's above a row of shops.
0:24:01 > 0:24:04Let's see how he gets on later in the programme.
0:24:06 > 0:24:09Coming up, I was thinking that this house in Kent
0:24:09 > 0:24:11looked a lot worse than it is.
0:24:11 > 0:24:14Oh, but I've just seen that!
0:24:15 > 0:24:17Back in Hampshire, Ian has discovered
0:24:17 > 0:24:19he's got more work to do than he'd planned.
0:24:19 > 0:24:23I took the decision at that point that I wasn't going to skimp on it,
0:24:23 > 0:24:25I just wanted to get a good result at the end.
0:24:26 > 0:24:28But first it's back to the Corner House
0:24:28 > 0:24:30where there have been a few changes.
0:24:30 > 0:24:33We also just popped the stairs into the corner.
0:24:33 > 0:24:35That small point. Yes, we did, didn't we?
0:24:37 > 0:24:40Time now to return to Cornwall
0:24:40 > 0:24:44where naval officer Leanne and husband Mike paid £116,000
0:24:44 > 0:24:47for this two-bedroom cottage
0:24:47 > 0:24:51near the village of Stithians. Initially they had thought about
0:24:51 > 0:24:54making it their home but as it was a bit too small
0:24:54 > 0:24:57they decided to stay in their naval quarters for now.
0:24:57 > 0:25:00But this little property was certainly all at sea,
0:25:00 > 0:25:03so have they got cracking and got it on an even keel?
0:25:05 > 0:25:08In terms of what we've done to the property,
0:25:08 > 0:25:11it's pretty much been a total renovation.
0:25:11 > 0:25:13The outside is different - we got rid of the pebble dash
0:25:13 > 0:25:15and Mike's rendered the outside,
0:25:15 > 0:25:19we've painted it, replaced the not very nice Elizabethan leaded windows
0:25:19 > 0:25:22with the Georgian version, which are more true
0:25:22 > 0:25:25to what would originally have been in the property.
0:25:25 > 0:25:27We've totally redecorated it,
0:25:27 > 0:25:29so we've got a new kitchen, taken out the bathroom
0:25:29 > 0:25:32and replaced that, redecorated throughout.
0:25:32 > 0:25:36- Have I forgotten...?- We also just popped the stairs into the corner.
0:25:36 > 0:25:39That small point, yes. Yes, we did, didn't we?
0:25:39 > 0:25:42As I mentioned before, moving those stairs would be the key
0:25:42 > 0:25:44to making this cottage first rate.
0:25:44 > 0:25:48They've done just that and, oh, so much more!
0:25:48 > 0:25:53# These are a few of my favourite things. #
0:25:53 > 0:25:57But the downstairs living space is by far my favourite part
0:25:57 > 0:25:59of this beautifully renovated cottage.
0:25:59 > 0:26:03Our first priority was to move these stairs from the centre of the room,
0:26:03 > 0:26:07which divided it into two unusable spaces, right into the corner,
0:26:07 > 0:26:10but to do that we had to take the wall down and replace it
0:26:10 > 0:26:13with a supporting beam, so there we've just got the wooden beam,
0:26:13 > 0:26:16which actually used to be part of Falmouth pier.
0:26:16 > 0:26:19Once in place - my father-in-law and I managed to get it in
0:26:19 > 0:26:23just with the pair of us, using ladders and trestles and tables
0:26:23 > 0:26:27and goodness knows what - we managed to put the stairs into the corner
0:26:27 > 0:26:30and then it was just a case of repairing the damage, as it were.
0:26:30 > 0:26:34Just replastering the ceilings. Now the light just can flood through
0:26:34 > 0:26:39all these windows and it just makes it such a beautiful and usable space
0:26:39 > 0:26:42where you can have your nice big corner group and a dining room table
0:26:42 > 0:26:46and it just makes it a much better space to use
0:26:46 > 0:26:48for a family or a couple or whoever.
0:26:51 > 0:26:56By moving those stairs, upstairs has been shuffled around a bit,
0:26:56 > 0:26:59but they've lost not much floor space. Both bedrooms remain
0:26:59 > 0:27:03good-sized doubles and the bathroom has been completely redone.
0:27:03 > 0:27:06But Leanne and Mike decided not to extend the kitchen.
0:27:06 > 0:27:09Instead, they renovated what was already there.
0:27:09 > 0:27:13Completely stripped out the old kitchen and put terracotta tiles
0:27:13 > 0:27:16on the floor which have quite a nice rusticy feel.
0:27:16 > 0:27:19Gone for nice light units, again, light walls.
0:27:19 > 0:27:23Solid beech worktops which, again, just nice quality material
0:27:23 > 0:27:26and nice rusticy feel to it, the same with the oak handles.
0:27:26 > 0:27:29Really tried to go for a compromise between a modern kitchen
0:27:29 > 0:27:32and something that fits with the cottage.
0:27:32 > 0:27:37Overall, it was a huge amount of work, finished in just three months.
0:27:37 > 0:27:40With Leanne back at work after maternity leave
0:27:40 > 0:27:44and Mike caring for Farah, it's been difficult finding time
0:27:44 > 0:27:48to fit it all in, but, thankfully, they had Leanne's superdad to help.
0:27:48 > 0:27:51He was only here for about... six weeks? Four weeks?
0:27:51 > 0:27:55The frustrating thing about this property is that the vast majority
0:27:55 > 0:27:58of the work was done in, I think, the six weeks my father was here.
0:27:58 > 0:28:02After I went back to work full time we've had to snatch time.
0:28:02 > 0:28:06I do about a 55-hour week on average, so I've either been at work
0:28:06 > 0:28:09or Mike's been at work, but we've had a lot, lot less time,
0:28:09 > 0:28:12so the vast majority of the work was done by you and my father,
0:28:12 > 0:28:15in six weeks and from there things have got a little bit slower.
0:28:15 > 0:28:17At one stage we worked out
0:28:17 > 0:28:21that out of 30 days we worked 28 and a half of those days.
0:28:21 > 0:28:25- On average, they were about 14-hour days?- Seemed like it anyway, yeah!
0:28:25 > 0:28:28I don't know what you were doing for the other 10 hours,
0:28:28 > 0:28:30it's quite slack!
0:28:30 > 0:28:34Initially the couple had considered living here, but it's not big enough
0:28:34 > 0:28:38for them, so what have they got planned for the Corner House?
0:28:40 > 0:28:44We were thinking of living in it, but we'll be having another child,
0:28:44 > 0:28:48so I think we'll look for something a little bit bigger. It's a shame.
0:28:48 > 0:28:52I know you've enjoyed working here because the neighbours are lovely
0:28:52 > 0:28:56and it's been a real pleasure to be here, but I think we'll have
0:28:56 > 0:28:59to sell it and hopefully it will make a lovely home for someone,
0:28:59 > 0:29:01just not for us this time.
0:29:01 > 0:29:05After all the work they did, along with Leanne's dad,
0:29:05 > 0:29:08I think that it will be a perfect home for someone,
0:29:08 > 0:29:11but how much has it cost them to renovate the cottage
0:29:11 > 0:29:14on top of the £116,000 purchase price?
0:29:16 > 0:29:20In terms of the budget we're quite happy with how things have gone.
0:29:20 > 0:29:23We were looking at around the £12,000 to £15,000 mark
0:29:23 > 0:29:27and we've come in just about under the 12,000 mark, which is great.
0:29:27 > 0:29:30Just sourced lots of things cheaply using internet auction sites,
0:29:30 > 0:29:33so even though we've used the solid wood worktops, the oak flooring,
0:29:33 > 0:29:37the limestone tiles, we've managed to get them at a really good price.
0:29:37 > 0:29:41We did look at block paving the yard but I think it's not money
0:29:41 > 0:29:44that we'd get back from the sale so we've kept that out,
0:29:44 > 0:29:48but I think we've done quite well to come in at about £12,000.
0:29:48 > 0:29:52Me too! That brings the project in at about 128,000.
0:29:52 > 0:29:53As they now plan to sell it
0:29:53 > 0:29:56and continue searching for a new home of their own,
0:29:56 > 0:29:59they'll be hoping two local estate agents
0:29:59 > 0:30:01are also impressed with their work.
0:30:12 > 0:30:16It's a very fresh, contemporary property - a character cottage.
0:30:16 > 0:30:22It's retained a lot of charm. A good two-bedroom property.
0:30:22 > 0:30:24Moving the stairs has made a lot of difference.
0:30:24 > 0:30:27It's opened out this room so much, whereas before
0:30:27 > 0:30:30there was this area and an area here divided by the staircase.
0:30:30 > 0:30:33He's done a tremendous job by moving it. Well worthwhile.
0:30:33 > 0:30:38Good comments, but after spending a total of 128,000
0:30:38 > 0:30:42buying and renovating the place, will this naval couple's boat come in
0:30:42 > 0:30:45when the cottage sets sail on the open market?
0:30:47 > 0:30:49I think if I was marketing
0:30:49 > 0:30:52this property now we'd be looking £175,000, £180,000,
0:30:52 > 0:30:55something like that, because of the standard that they've done.
0:30:55 > 0:30:58I think we would market this property
0:30:58 > 0:31:00at between £175,000 and £185,000.
0:31:03 > 0:31:05At those figures, it's been a success,
0:31:05 > 0:31:09- if we can sell it for 175, even a bit more.- It's been hard work,
0:31:09 > 0:31:13but I think we've enjoyed it most of the time, so pretty good.
0:31:13 > 0:31:17With a predicted profit of around £50,000 from the venture
0:31:17 > 0:31:20I think they've sailed through with flying colours.
0:31:20 > 0:31:25They've successfully transformed this cottage from rack and ruin
0:31:25 > 0:31:28to shipshape in no time. How do they feel now it's finished?
0:31:28 > 0:31:31- Really happy. Really enjoyed it. - I think we can be proud of it.
0:31:31 > 0:31:35It's been a huge transformation from what it was to what it is now,
0:31:35 > 0:31:37- so really quite pleased. - So bring on the next one!
0:31:41 > 0:31:44I'm in Orpington in Kent,
0:31:44 > 0:31:49famous for buff, black and speckled.
0:31:49 > 0:31:53Not painting techniques - chickens, which were first bred locally
0:31:53 > 0:31:57by William Cook in the 1890s.
0:31:57 > 0:32:01This is in the borough of Bromley which is a fantastic place
0:32:01 > 0:32:04for commuting into London, quick rail services
0:32:04 > 0:32:07into the centre of town and you've got the Eurostar, as well.
0:32:07 > 0:32:10The big question is, will the property I'm here to see
0:32:10 > 0:32:13be "eggcellent" or just plain rotten?
0:32:15 > 0:32:17Up for auction was this.
0:32:17 > 0:32:19It's a 1930s bungalow.
0:32:19 > 0:32:23It had a guide price of 120,000 to 130,000 quid.
0:32:23 > 0:32:28Now the street is lovely, but the bungalow itself
0:32:28 > 0:32:30doesn't look too good from the outside.
0:32:38 > 0:32:41It doesn't look like it gets much better inside, to be honest.
0:32:41 > 0:32:44Anyway, retain an open mind, I say. What have we got?
0:32:44 > 0:32:47Central area here, quite small and cramped,
0:32:47 > 0:32:49and then all the rooms spread off it.
0:32:49 > 0:32:51You've got the bathroom and loo there.
0:32:51 > 0:32:54It doesn't look like it's been refurbished since the bungalow was built.
0:32:54 > 0:32:58First bedroom there, kind of small, but perfectly formed, I suppose.
0:32:58 > 0:33:02Living room there with a nice bay window, that's good to see.
0:33:02 > 0:33:05It's got a gas fire in it. I suppose that could be a bedroom as well
0:33:05 > 0:33:08because you've got this here which is the rear living room.
0:33:08 > 0:33:11Single door there. I'd like to see that opened up with double doors
0:33:11 > 0:33:15out on to the garden for sure. I want to check out the gas fires.
0:33:15 > 0:33:18I don't know, I suppose for a small bungalow it's not doing too bad.
0:33:18 > 0:33:22Oh, but I've just seen that!
0:33:24 > 0:33:28Because this is your kitchen and that sink unit is your work surface.
0:33:28 > 0:33:32There's a few cupboards, a bit of wasted space here and there,
0:33:32 > 0:33:35but overall a total refurbishment required.
0:33:35 > 0:33:38Take out this wall, at least increase the space somehow
0:33:38 > 0:33:43because at the moment if you come in here you just feel so cooped up.
0:33:43 > 0:33:46Well, they say you have to break eggs to make an omelette,
0:33:46 > 0:33:51but whoever buys this bungalow is going to have to shell out
0:33:51 > 0:33:53a bit of cash to make it "eggciting" again.
0:33:53 > 0:33:57For that guide price of £120,000 to £130,000
0:33:57 > 0:34:00the key to maximising your investment is at the back.
0:34:03 > 0:34:06I think the great potential of this bungalow is to be found
0:34:06 > 0:34:10out the back here, in the back garden. Actually, it's given away
0:34:10 > 0:34:12by the neighbouring property, because on that side
0:34:12 > 0:34:16they've put on a huge extension and on that side a small conservatory.
0:34:16 > 0:34:19You want to do that with this bungalow. How much will it cost?
0:34:19 > 0:34:21Something like that, probably 50,000,
0:34:21 > 0:34:25something like that, maybe 5,000 to 10,000, so somewhere between there
0:34:25 > 0:34:28you've got a choice, but either way that is the way
0:34:28 > 0:34:32to maximise this property and make it into a much nicer place to live.
0:34:32 > 0:34:37Well, that's my opinion, but in the interest of fair play I've invited
0:34:37 > 0:34:42along a local estate agent to see if he agrees with my analysis.
0:34:43 > 0:34:47In terms of potential, there's two clear areas where the property
0:34:47 > 0:34:51could be extended. A lot of bungalows in the area have been extended
0:34:51 > 0:34:54out the back and a lot have been extended upwards into the roofline
0:34:54 > 0:34:57to create chalet bungalows.
0:34:57 > 0:35:01The key issue here is to get the existing structure sorted out
0:35:01 > 0:35:02in terms of wiring, plumbing,
0:35:02 > 0:35:06replastering and decorating and then if budget suffices
0:35:06 > 0:35:07then look at an extension.
0:35:07 > 0:35:12To find out the maximum you should spend on doing those renovations
0:35:12 > 0:35:15deduct the £120,000 or £130,000 guide price
0:35:15 > 0:35:18from whatever this property's worth once finished.
0:35:18 > 0:35:22Once the property has been refurbished and renovated,
0:35:22 > 0:35:27not extended, then I would expect it to sell on in the open market
0:35:27 > 0:35:29somewhere in the order of £215,000.
0:35:29 > 0:35:33Orpington is famous for its chickens and the bungalow garden
0:35:33 > 0:35:37is certainly big enough to keep a few, but the big question is
0:35:37 > 0:35:42will this be a nice little nest egg or not all it's cracked up to be?
0:35:42 > 0:35:47Let's find out who shelled out for it at the auction.
0:35:50 > 0:35:54Now we go to lot number 13, which is Six Somerden Road, Orpington.
0:35:54 > 0:35:59A semidetached bungalow in need of improvement, but well worthy of it.
0:35:59 > 0:36:02Start me where you will.
0:36:02 > 0:36:05Can I see £120,000 for it, in Orpington, a bungalow?
0:36:06 > 0:36:10100, I'm on the way. Thank you, sir. £100,000 I've got.
0:36:10 > 0:36:15And 10 now do I see? 110 sitting down in the aisle. 115 if you like.
0:36:15 > 0:36:17115 in a fresh place at the back.
0:36:17 > 0:36:19115 I've got. 120 if you like.
0:36:19 > 0:36:24120. And two if you like? 122? 122?
0:36:24 > 0:36:26At £120,000 I have sitting down.
0:36:26 > 0:36:31122 I'm looking for. Are we all done at £120,000? 122.
0:36:31 > 0:36:34125. 127?
0:36:34 > 0:36:38127. 130. And two. 132.
0:36:38 > 0:36:42And five. And seven. 137. And 40.
0:36:42 > 0:36:45And two. 142. And five.
0:36:45 > 0:36:48145. At 142 I have.
0:36:48 > 0:36:50145 you're coming in. At 145.
0:36:50 > 0:36:53And seven. 147 on the back wall. 150.
0:36:53 > 0:36:55150 in a fresh place. And two.
0:36:55 > 0:37:02152. And five. 155? 155. And seven.
0:37:02 > 0:37:05And 60. 160.
0:37:05 > 0:37:10160. 162. And five. 165.
0:37:10 > 0:37:12And seven. 167.
0:37:12 > 0:37:17165 sitting right in the back row. At 165. Seven on the back wall
0:37:17 > 0:37:20and you're out of it at the moment, as you are in the front.
0:37:20 > 0:37:23At £165,000 I will sell, then, for the first time.
0:37:23 > 0:37:27165 sitting down for the second time.
0:37:27 > 0:37:32165,000 for the third and final time if you're all done? Yours at 165,000.
0:37:32 > 0:37:34And the number please, sir?
0:37:34 > 0:37:36With that bid of 165,000
0:37:36 > 0:37:40the new owners are husband and wife duo Alan and Violet.
0:37:40 > 0:37:44This is the first time they've bought a property at auction.
0:37:44 > 0:37:48I met them back at the bungalow to hear about their purchase.
0:37:48 > 0:37:50- Congratulations.- Thank you.
0:37:50 > 0:37:53Tell me why you wanted to buy the bungalow?
0:37:53 > 0:37:57We were looking for a property to buy because our business has
0:37:57 > 0:38:01- quietened down in the recession. - And what's your business?
0:38:01 > 0:38:07We've been a builder for 28 years and mainly working for housing trusts
0:38:07 > 0:38:10and because of the recession their funding has got cut back
0:38:10 > 0:38:15- so we're not as busy as we were. - Right.- I'm actually retired now,
0:38:15 > 0:38:19semi-retired, I help out, but the family's involved in the business,
0:38:19 > 0:38:24- so I reinvested some money into the business to buy a property...- Right.
0:38:24 > 0:38:27- Largely by watching your programme. - Oh, really? Oh, excellent!
0:38:27 > 0:38:30- I'm glad we helped out there. - Yeah.- Fantastic.
0:38:30 > 0:38:34And we're trying to buy... Sorry, we're trying to buy our work
0:38:34 > 0:38:38rather than rely on somebody else sending it to us and doing a quotation.
0:38:38 > 0:38:40How come you haven't done this before?
0:38:40 > 0:38:44Never had to. We've worked continually for housing trusts
0:38:44 > 0:38:46for 28 years and we've been very busy.
0:38:46 > 0:38:47We've never had to look for work.
0:38:47 > 0:38:50There's always been more than enough.
0:38:50 > 0:38:53Tell me about you two. How long have you been together?
0:38:53 > 0:38:58- We got married when we were what, 20 each?- Yeah.- Both 20.- Yeah.
0:38:58 > 0:39:03And we met when we were on holiday and we've been in love ever since,
0:39:03 > 0:39:05- really, haven't we, you know?- Yes.
0:39:05 > 0:39:09Aww! That's nice to hear. It's nice to hear you saying it.
0:39:09 > 0:39:12Well, she's my right arm, really.
0:39:12 > 0:39:14I couldn't do without her at all.
0:39:14 > 0:39:17# Ah, ah, working together
0:39:17 > 0:39:20# Ah, ah, living together... #
0:39:20 > 0:39:23Although Alan has been a builder all his life,
0:39:23 > 0:39:27this is his first investment property. It will provide some work
0:39:27 > 0:39:31not only for him, but also his family, which is a big one!
0:39:31 > 0:39:36Alan and Violet have four children and six grandchildren
0:39:36 > 0:39:39and they all live within a 30-minute radius.
0:39:39 > 0:39:42My wife said to me that she wouldn't marry me
0:39:42 > 0:39:44unless I agreed to have four children,
0:39:44 > 0:39:46so I didn't have any option, really!
0:39:46 > 0:39:48So you've been together almost 40 years?
0:39:48 > 0:39:50- Yeah.- Yeah.- It must be that.
0:39:50 > 0:39:53Well, I'm coming up to 68.
0:39:53 > 0:39:54- No, don't say it!- 68!- Yeah.
0:39:54 > 0:39:57- So you've been together nearly 50 years.- Yes, yes.
0:39:57 > 0:40:00- It's more than 40 years. Yeah. - What do you put that down to,
0:40:00 > 0:40:03that you've been together for that length of time?
0:40:03 > 0:40:06- Just love each other. - Sharing, I suppose, one another.
0:40:07 > 0:40:10- Yeah, we do everything together, really, don't we?- Yeah.
0:40:13 > 0:40:17They're a pretty close-knit family and when Alan says
0:40:17 > 0:40:20they'll do everything together he means it.
0:40:20 > 0:40:25They will all be involved with this renovation from start to finish.
0:40:25 > 0:40:29Pete will do the carpentry and joinery. Stephen will do,
0:40:29 > 0:40:33he's a Corgi registered plumber, do central heating.
0:40:33 > 0:40:38My daughter will do decorations. There's some brickwork that
0:40:38 > 0:40:41needs doing and a bit of plastering which I'll do.
0:40:41 > 0:40:44- Stephen's also a qualified electrician, so...- Right.
0:40:44 > 0:40:46So it really is going to be a family affair?
0:40:46 > 0:40:49- Yeah.- Yeah.- I used to do the brickwork and plastering.
0:40:49 > 0:40:53I suppose I'll probably have to do a bit here, you know, to help out.
0:40:53 > 0:40:54Have to or want to?
0:40:54 > 0:40:58I don't mind. I mean, I'm quite fit, you know, I've got a bit of a tummy,
0:40:58 > 0:41:03but I'm quite fit and, you know, I like to do a bit of work.
0:41:03 > 0:41:06- I always did, you know?- Any idea how much it's going to cost?
0:41:06 > 0:41:08Yeah, I did cost it out.
0:41:08 > 0:41:13Including fees for buying and selling and insurance and things like that,
0:41:13 > 0:41:17it will come to about 27 grand, I think, 27,000.
0:41:17 > 0:41:19Quite a big budget, then?
0:41:19 > 0:41:24Well, we want to do a good job on it, you know?
0:41:24 > 0:41:27Often I can't always follow the figures that is given
0:41:27 > 0:41:30on your programme when people say they can do it for 5,000 or 6,000.
0:41:30 > 0:41:32I think they ignore their own wages.
0:41:32 > 0:41:35I think they just include the material.
0:41:35 > 0:41:41- Very true.- But, I mean, I've been doing estimating for 28 years,
0:41:41 > 0:41:45so I know what it costs to do jobs for housing trusts,
0:41:45 > 0:41:46very similar sort of work.
0:41:46 > 0:41:50Interestingly, Alan isn't doing this to make a profit,
0:41:50 > 0:41:54but rather to find work for his family. However, if he keeps
0:41:54 > 0:41:57that budget in check and the house does make money
0:41:57 > 0:41:59he'll be able to go and buy another one to renovate.
0:41:59 > 0:42:03Tell me exactly what you're going to do to the property.
0:42:03 > 0:42:06First, we'll strip the walls and get rid of the wallpaper,
0:42:06 > 0:42:09see if there's any replastering to be done. The kitchen,
0:42:09 > 0:42:12you probably noticed, does really need completely replastering.
0:42:12 > 0:42:17We're going to put central heating in because it isn't in at the moment.
0:42:17 > 0:42:21- And then double doors out on to the garden from the lounge?- Yeah,
0:42:21 > 0:42:24we were thinking about cutting the shoulders down on the brickwork
0:42:24 > 0:42:28- and rendering and putting in patio doors.- Or French ones.
0:42:28 > 0:42:33- Or French ones, if you get your way, so maybe!- I like French doors, too.
0:42:33 > 0:42:36- You think French doors might be better?- Yeah. I'm on your side.
0:42:36 > 0:42:39OK! I think you've won that one.
0:42:40 > 0:42:45Violet obviously has some ideas of her own, but hopefully together
0:42:45 > 0:42:47they'll be able to make sure
0:42:47 > 0:42:51this first investment project of their own is a success.
0:42:52 > 0:42:56Well, what a lovely story. And Alan and Violet turning
0:42:56 > 0:43:01the restoration of this little bungalow into a real family affair.
0:43:01 > 0:43:04I am a bit concerned that there's virtually no incentive
0:43:04 > 0:43:08to keep tight reins on that budget, so goodness knows what will happen.
0:43:08 > 0:43:11You can find out later in the show.
0:43:13 > 0:43:17Well, as you know, the best-laid plans can go horribly wrong.
0:43:17 > 0:43:21So have today's schemes and plans gone well, or have they gone awry?
0:43:21 > 0:43:23Let's find out.
0:43:25 > 0:43:29Earlier in the show I visited this two-bed flat in Fareham, Hampshire.
0:43:29 > 0:43:32There was lots of space available inside and it even had
0:43:32 > 0:43:36its own garden and off-street parking, so it had a lot going for it.
0:43:38 > 0:43:41But the pokey kitchen and bathroom did worry me a little,
0:43:41 > 0:43:45as did its location above a taxi office.
0:43:47 > 0:43:50Building services engineer Ian wasn't concerned, though.
0:43:50 > 0:43:54He lives just down the road and felt that a 15,000 to 20,000 investment
0:43:54 > 0:43:58on top of his 75-grand purchase price would be enough to convince
0:43:58 > 0:44:01prospective tenants that the positives in this flat
0:44:01 > 0:44:04far outweigh any negatives.
0:44:04 > 0:44:10Just ten weeks on and Ian seems to have got further than I'd expected.
0:44:11 > 0:44:16There are new windows, new doors and new plasterwork throughout.
0:44:16 > 0:44:19So was this all part of the plan?
0:44:19 > 0:44:24Obviously, we started by stripping everything out and we realised
0:44:24 > 0:44:27that the plasterwork was fairly dry and crumbly.
0:44:27 > 0:44:31I took the decision at that point that I wasn't going to skimp on it,
0:44:31 > 0:44:34I just wanted to get a good result at the end and have
0:44:34 > 0:44:37something that someone would be pleased to live in.
0:44:37 > 0:44:39I think that's what Ian's achieved.
0:44:39 > 0:44:43He had the flat completely rewired and after some consideration
0:44:43 > 0:44:47also decided to replace all the plumbing, too.
0:44:48 > 0:44:52I was hoping we could reuse quite a lot of, but in the event,
0:44:52 > 0:44:56when we looked at it we decided to again replace the lot,
0:44:56 > 0:45:01bring it all up to date and make it more energy efficient and hopefully
0:45:01 > 0:45:05give it another 30 years of life. The bathroom was horrible.
0:45:05 > 0:45:08We've put in a modern white finish
0:45:08 > 0:45:12and we've put a sun pipe in the roof
0:45:12 > 0:45:16which gives a huge amount of natural daylight during the day
0:45:16 > 0:45:19and you don't need lights or anything in there other than at night,
0:45:19 > 0:45:22so it's turned a horrible room into a very pleasant bathroom,
0:45:22 > 0:45:25albeit small, but functional.
0:45:25 > 0:45:28Not only that, but renewing the central heating system
0:45:28 > 0:45:32also had advantages when it came to remodelling the kitchen.
0:45:32 > 0:45:36In the kitchen we've regained a nice chunk of space in this corner
0:45:36 > 0:45:39where the hot-water storage used to be in a big built-in cupboard.
0:45:39 > 0:45:42The cooker used to be behind the door.
0:45:42 > 0:45:46We've put a radiator there, probably some shelves will go above,
0:45:46 > 0:45:51and then made a layout which is a bit more ergonomic than it used to be.
0:45:51 > 0:45:53Oh, we've put a new window in as well, and a new wall there
0:45:53 > 0:45:57because it was falling down. Other than that, that's it, really.
0:45:57 > 0:46:01Modestly put, Ian! Now, what was that about a wall falling down?
0:46:01 > 0:46:05We found the wall between the bathroom and the kitchen
0:46:05 > 0:46:09was very unstable. It was made of blocks planted on the wooden floor,
0:46:09 > 0:46:12so we took that out and rebuilt it with a studwork wall.
0:46:13 > 0:46:17However, it wasn't all repair and renovate with this flat.
0:46:17 > 0:46:20Ian also made some interesting discoveries.
0:46:20 > 0:46:24This room at this end where I'm standing, most of it was boarded off
0:46:24 > 0:46:29with hardboard and shelves and behind me there was just a flat wall.
0:46:29 > 0:46:33When we took the hardboard away we found a fireplace
0:46:33 > 0:46:37and an alcove at the back of the stairs which we thought we'd keep.
0:46:37 > 0:46:41The fireplace is original 1930s, not in particularly good condition,
0:46:41 > 0:46:46but it just seemed a shame to rip it out and it just looks
0:46:46 > 0:46:48quite a pleasant feature.
0:46:49 > 0:46:52And the same is true in the second bedroom where the fireplace
0:46:52 > 0:46:55adds some much needed character.
0:46:55 > 0:46:58Acting on advice from a local tree surgeon, Ian has removed
0:46:58 > 0:47:01the trees as the first step in landscaping the garden.
0:47:01 > 0:47:05That's another feature sure to attract tenants.
0:47:05 > 0:47:09Although it seems he isn't going to rent it out just yet.
0:47:09 > 0:47:13The plan for the flat is it's going to be let and as it happens
0:47:13 > 0:47:17it's going to be let to my son at the moment because he's imminently
0:47:17 > 0:47:19going to be a father and his girlfriend, obviously,
0:47:19 > 0:47:24and they could be here for a year or five years, who knows?
0:47:24 > 0:47:29But that was possibly another reason to maybe spend a bit more
0:47:29 > 0:47:33and do a better job than one might have done if it was just
0:47:33 > 0:47:37a straight buy-to-let to make as much income as possible.
0:47:37 > 0:47:40The property has certainly benefited from the extra effort,
0:47:40 > 0:47:47but at a cost of 32,000 Ian has almost doubled his original budget.
0:47:47 > 0:47:52With that 75,000 purchase price his total investment
0:47:52 > 0:47:56is now £107,000. Was it all worth it?
0:48:07 > 0:48:09My first impressions are
0:48:09 > 0:48:13there's been a lot of money spent and it's done to a high standard.
0:48:13 > 0:48:15Decorated throughout, which makes it feel much lighter,
0:48:15 > 0:48:19it felt quite dark last time, and a lot more spacious.
0:48:19 > 0:48:24The kitchen's very nice, very compact, but again modern throughout
0:48:24 > 0:48:28and it's got the integrated appliances, which is great.
0:48:28 > 0:48:32So all-round approval from the estate agents for the work
0:48:32 > 0:48:33that Ian's done here,
0:48:33 > 0:48:37but what should he be charging his son in rental when he moves in?
0:48:37 > 0:48:40For rental I would expect this property to achieve between
0:48:40 > 0:48:42£600 and £625 per calendar month.
0:48:42 > 0:48:46We would put it on, and like to achieve,
0:48:46 > 0:48:49between £595 to £625 per calendar month.
0:48:49 > 0:48:53620 was the figure I had in mind, so they're spot on. We agree!
0:48:53 > 0:48:59£620 per calendar month would mean a yield of about 7%
0:48:59 > 0:49:01on his £107,000 investment.
0:49:02 > 0:49:06How much has he added to the resale value?
0:49:06 > 0:49:09We'd put this on the market at 115,000.
0:49:09 > 0:49:12I would value this property at £125,000.
0:49:12 > 0:49:17Well, I agree with the 125,000, obviously, which I would,
0:49:17 > 0:49:19but I think 115's too low.
0:49:19 > 0:49:25Even at 115,000, Ian could still make a pre-tax profit of £8,000,
0:49:25 > 0:49:29but he intends to rent it out in the long term.
0:49:29 > 0:49:33It sounds as though he's got it ready for the first tenants
0:49:33 > 0:49:35in the nick of time!
0:49:35 > 0:49:38The baby's due within two weeks, I think, and they can move in,
0:49:38 > 0:49:42it doesn't stop us carrying on the work in the garden,
0:49:42 > 0:49:45which won't take too long, so they're all looking...
0:49:45 > 0:49:46Everyone's looking forward to it.
0:49:50 > 0:49:55When builder Alan and his wife, Violet, invested £165,000
0:49:55 > 0:50:00buying this battered two-bedroom bungalow in Orpington, Kent,
0:50:00 > 0:50:05it wasn't as a new home, nor was it simply a profit-making exercise.
0:50:05 > 0:50:11Instead, Alan bought it as he, and the other members of his family-run building business,
0:50:11 > 0:50:12had run out of work.
0:50:12 > 0:50:14So, rather than sit on their hands
0:50:14 > 0:50:18they planned to renovate this property and then decide what to do with it.
0:50:18 > 0:50:23Well, three months on we've returned to see they've been very busy.
0:50:23 > 0:50:29Stephen's done the plumbing and Peter's just finished the kitchen, hasn't he? But mainly been painting.
0:50:29 > 0:50:33And you've done quite a bit, haven't you, yourself?
0:50:33 > 0:50:36- More than I expected to do, yeah. - Yes, he has.
0:50:36 > 0:50:39It seems that Alan perhaps took on more than he wanted,
0:50:39 > 0:50:45but together with his daughter and two sons, they've completely transformed this property.
0:51:00 > 0:51:02As you can see, this is a new kitchen.
0:51:02 > 0:51:08Originally, there was a door leading out there which we closed up so that we could have a wraparound kitchen.
0:51:08 > 0:51:11There was a window in that corner which we bricked up.
0:51:11 > 0:51:16We lost a bit of light, so we put a slightly bigger window in there,
0:51:16 > 0:51:19which is a new PVC glazed window.
0:51:19 > 0:51:20We renewed the ceiling
0:51:20 > 0:51:26and we replastered the rest of the walls because they were damp.
0:51:26 > 0:51:30The entire place has been rewired, replumbed and replastered.
0:51:30 > 0:51:32As well as the new kitchen,
0:51:32 > 0:51:35the bathroom now looks a lot more inviting, too.
0:51:35 > 0:51:39Inside, all that's left to finish are the carpets.
0:51:39 > 0:51:42I'm pleased to see that Violet got her French doors,
0:51:42 > 0:51:45but the biggest change is outside.
0:51:45 > 0:51:50The first time that I visited the property I noticed that the sun was beaming down
0:51:50 > 0:51:55and I thought to myself, "This would be ideal for a conservatory," which we've now built.
0:51:55 > 0:51:58I also noticed that the ground was quite deep there,
0:51:58 > 0:52:02there was about 18 inches with steps running up to the rear door
0:52:02 > 0:52:07and if we happened to sell to a pensioner that they wouldn't want that.
0:52:07 > 0:52:12They wouldn't want to go downstairs and upstairs, so we raised the level,
0:52:12 > 0:52:14so that now, as you can see,
0:52:14 > 0:52:18there's maybe a six or an eight inch step in the conservatory.
0:52:18 > 0:52:22While Alan may have been a bit more hands on than he would have liked,
0:52:22 > 0:52:27it was because his sons were working on a new contract for the family business,
0:52:27 > 0:52:29but as son Steve points out,
0:52:29 > 0:52:34when they were here working for themselves it took a bit of getting used to.
0:52:35 > 0:52:39It's been different from what we normally do because we normally
0:52:39 > 0:52:43have a spec to work on, we're told exactly what we have to do,
0:52:43 > 0:52:48whereas here we've had to make decisions that architects often make, you know?
0:52:48 > 0:52:51So that has been a new experience.
0:52:51 > 0:52:55It's just been real fun, you know? It's been good, I've enjoyed it.
0:52:58 > 0:53:02With all that experience, this is the first time they've renovated
0:53:02 > 0:53:04a property as an investment for themselves,
0:53:04 > 0:53:09so with no other boss but himself, did Alan keep the budget under control?
0:53:11 > 0:53:15If you remember, the original budget was 27,000
0:53:15 > 0:53:22and I would say now it's just about 30,000, so we spent about 3,000 more.
0:53:22 > 0:53:26Add that to the purchase price of 165,000
0:53:26 > 0:53:30and it brings their total to just under £200,000.
0:53:30 > 0:53:35There's no doubt they've succeeded in providing work for themselves
0:53:35 > 0:53:37as well as doing a successful renovation,
0:53:37 > 0:53:41but have they decided what to do with the bungalow now it's finished?
0:53:41 > 0:53:46I think it depends whether we make a profit or a loss, to be quite honest.
0:53:46 > 0:53:51I mean, we're starting to pick up a bit more housing trust work
0:53:51 > 0:53:55which is what we know, which we've done reasonably well out of
0:53:55 > 0:53:59over the years, but this is a complete venture, really.
0:53:59 > 0:54:04But I've quite enjoyed doing it and, you know, if we get our money back
0:54:04 > 0:54:08and a small return, then, yes, we would probably try another one.
0:54:08 > 0:54:13After investing a total of around £195,000 buying and renovating this place,
0:54:13 > 0:54:18it's down to two local estate agents to help Alan and Violet decide
0:54:18 > 0:54:21what to do with it now it's nearly finished.
0:54:21 > 0:54:25But, before they do that, they're coming down to see for themselves.
0:54:36 > 0:54:42First impressions, very impressive considering they only just bought it a couple of months ago.
0:54:42 > 0:54:43They've done a very good job
0:54:43 > 0:54:46and I think it's a very appealing property.
0:54:46 > 0:54:48The conservatory addition at the back gives extra space
0:54:48 > 0:54:51because these bungalows can be a little bit small
0:54:51 > 0:54:56and it's ideal for somebody who's looking for something with no chain and they can move straight in.
0:54:56 > 0:54:58I think the level of finish is very high
0:54:58 > 0:55:01considering they've only just bought the property back in July.
0:55:01 > 0:55:04Throughout, it's been done to a very high standard
0:55:04 > 0:55:06with double-glazed windows throughout.
0:55:06 > 0:55:11Both estate agents agreed that the bungalow would achieve
0:55:11 > 0:55:16around £800 to £850 per calendar month if they were to rent it out,
0:55:16 > 0:55:19but if they decided to sell, how much would they get
0:55:19 > 0:55:22after spending a total of 195,000 to date?
0:55:22 > 0:55:28I'd put this property on the market at a figure between 215,000 and 220,000.
0:55:28 > 0:55:31If I was to put this property on the market today
0:55:31 > 0:55:35I'd sell it in the region of £210,000 to £220,000.
0:55:39 > 0:55:45Yeah, we were hoping for about 215 to 220, so, yeah, that's fine.
0:55:45 > 0:55:49Yeah, that's about what we were thinking, yeah, which I indicated, yeah.
0:55:49 > 0:55:53Yeah, so that sounds like in the ballpark we were sort of thinking ourselves, so, yeah, yeah.
0:55:53 > 0:55:56More importantly, that gives them a potential profit
0:55:56 > 0:56:00which they could always use to buy and renovate another.
0:56:00 > 0:56:05So, are they heading back to an auction for a further family project?
0:56:05 > 0:56:08Well, we've got an auction magazine come through, haven't we?
0:56:08 > 0:56:12Yeah, we shall thumb through that and see where we go from there.
0:56:12 > 0:56:16Yeah. But, yeah, I think we would probably want to sell first.
0:56:16 > 0:56:18I mean, they've got work,
0:56:18 > 0:56:21they've got other work they can get on with at the moment,
0:56:21 > 0:56:23so what you're giving us is opinions,
0:56:23 > 0:56:26but it's not money in our pockets, is it?
0:56:26 > 0:56:29So, you know, the proof of the pudding is when we actually sell it
0:56:29 > 0:56:32and the money is back in then we can go ahead.
0:56:32 > 0:56:35While Alan may officially be retired,
0:56:35 > 0:56:39I think that with Violet by his side and their family behind them
0:56:39 > 0:56:44this won't be the last successful property they renovate together.
0:56:46 > 0:56:51We hope we've given you some good ideas and tips, should you venture into the auction room.
0:56:51 > 0:56:54And we hope you'll join us next time to hear more stories
0:56:54 > 0:56:56from people who did buy their homes under the hammer.
0:56:56 > 0:56:58- See you then.- Goodbye.- Goodbye.
0:57:04 > 0:57:07Subtitles by Red Bee Media Ltd
0:57:07 > 0:57:10E-mail subtitling@bbc.co.uk