0:00:02 > 0:00:05Hello. There are two things every property investor needs.
0:00:05 > 0:00:06A bit of cash to get started,
0:00:06 > 0:00:09and plenty of vision to see things through.
0:00:09 > 0:00:11If you're lucky enough to have both of those,
0:00:11 > 0:00:12you can head to the auction
0:00:12 > 0:00:15and kick start your dreams under the hammer.
0:00:40 > 0:00:44Property auctions happen all year round up and down the country.
0:00:44 > 0:00:47Yes, if you've ever fancied giving it a go, why not go along?
0:00:47 > 0:00:50It's free and you can see how it all works.
0:00:50 > 0:00:53So, let's see who went and bought on today's show.
0:00:54 > 0:00:55I do love a mystery,
0:00:55 > 0:00:59and this Victorian villa in Derby doesn't disappoint.
0:00:59 > 0:01:00What's this?
0:01:00 > 0:01:02Hmm.
0:01:02 > 0:01:04It needs investigating.
0:01:04 > 0:01:07Whoever buys this plot of land in Kent
0:01:07 > 0:01:10should have no problem making their mark.
0:01:10 > 0:01:13The site is directly next door to a disused chalk quarry.
0:01:14 > 0:01:19And in Nottinghamshire, finding space in this house is a bit tricky.
0:01:19 > 0:01:23Can't even get in... You can't get into it for all this clutter.
0:01:27 > 0:01:31All these properties went to auction and we'll find out who bought them
0:01:31 > 0:01:34and what they paid for them when they went under the hammer.
0:01:38 > 0:01:41This is the Mickleover district of Derby,
0:01:41 > 0:01:44a very desirable place to live.
0:01:44 > 0:01:46And even in turbulent property times
0:01:46 > 0:01:49prices here have actually stood up very well,
0:01:49 > 0:01:52not least because 90% of the houses here are owner-occupied,
0:01:52 > 0:01:55which means if you're looking to invest, it's a good place to be.
0:01:55 > 0:01:57So what are we here to see?
0:01:57 > 0:02:01It's a three-bedroomed mid-terrace with a guide price of 90,000 quid.
0:02:01 > 0:02:02Let's take a look.
0:02:04 > 0:02:06And the good news doesn't stop there.
0:02:06 > 0:02:08The property is near a medical centre,
0:02:08 > 0:02:11an excellent range of shops and schools,
0:02:11 > 0:02:14and it's surrounded by miles and miles of countryside.
0:02:18 > 0:02:21So, the garden needs a bit of TLC, what about the house itself?
0:02:21 > 0:02:23Fairly standard layout so far.
0:02:23 > 0:02:26Your entrance and then through into the main living room.
0:02:26 > 0:02:29One thing I notice is very old light fittings.
0:02:29 > 0:02:31Houses of this particular age
0:02:31 > 0:02:33are probably nearing the end of their lifetime
0:02:33 > 0:02:35in terms of their electrics
0:02:35 > 0:02:38and something to bear in mind if you are going to do these places up,
0:02:38 > 0:02:40it might need a re-wire.
0:02:40 > 0:02:42Someone's obviously put a new fireplace in
0:02:42 > 0:02:44and the room itself, not bad.
0:02:44 > 0:02:46Then through to the rear of the property.
0:02:48 > 0:02:51It's almost like it's a different house when you walk through here.
0:02:51 > 0:02:52Crikey!
0:02:52 > 0:02:55OK, what could we do with this?
0:02:55 > 0:02:58Well, the first thing I'm seeing is let's put some French doors
0:02:58 > 0:03:00or patio doors to open it out into the garden.
0:03:00 > 0:03:02And then this kitchen,
0:03:02 > 0:03:06it just seems totally out of kilter with the rest of the house.
0:03:06 > 0:03:10Scrappy old units, nothing on the floor.
0:03:10 > 0:03:12Obviously though, this is good news,
0:03:12 > 0:03:14because a bit of time and effort spent in here,
0:03:14 > 0:03:17you are going to dramatically affect the feel of the house.
0:03:17 > 0:03:19A bit of space out the back
0:03:19 > 0:03:22and, um...
0:03:22 > 0:03:24What's this?
0:03:25 > 0:03:26Hmm.
0:03:26 > 0:03:28It needs investigating.
0:03:30 > 0:03:33That's great, it's a slab,
0:03:33 > 0:03:36used for cooling meats and other, sort of, perishable products.
0:03:36 > 0:03:38You'd normally find one of those
0:03:38 > 0:03:42in a pantry in a Victorian mansion, not in a 1960s terrace.
0:03:42 > 0:03:46But actually it's quite nice to have and very practical as well,
0:03:46 > 0:03:47so keep it if you can.
0:03:47 > 0:03:49But while I'm in here, look at that.
0:03:49 > 0:03:51I was right about the electrics. Look at that fuse box.
0:03:51 > 0:03:56It uses the old wires and wire fuse.
0:03:56 > 0:03:57Not good at all.
0:03:57 > 0:04:02That means the electrics definitely, as I suspected, need sorting out.
0:04:04 > 0:04:09You'll probably want to have a look at the central heating system while you're at it.
0:04:09 > 0:04:12So already the costs are increasing with every room.
0:04:15 > 0:04:18So, upstairs, and three bedrooms.
0:04:18 > 0:04:20Hang on a minute, before I show you the bedrooms,
0:04:20 > 0:04:23there's something much more important here.
0:04:23 > 0:04:24Just get my handy tape measure
0:04:24 > 0:04:27that no good investor/developer should be without.
0:04:27 > 0:04:32Look at the gap between the spindles on this banister rail here.
0:04:32 > 0:04:36That is 13cm.
0:04:36 > 0:04:40Now, current building regulations state that's got to be 10cm or less.
0:04:40 > 0:04:42Think about it, small child falling through there.
0:04:42 > 0:04:44Major safety hazard,
0:04:44 > 0:04:47if you're buying this house to live in yourself and you have children,
0:04:47 > 0:04:49or if you're buying it to rent it out,
0:04:49 > 0:04:53that has got to be one of your first jobs to sort out.
0:04:53 > 0:04:54That said, what have we got here?
0:04:54 > 0:04:56Bathroom looks in reasonable nick,
0:04:56 > 0:04:59three good size bedrooms, everything else is fine.
0:04:59 > 0:05:02At that guide price of £90,000
0:05:02 > 0:05:05you might be confident that with a moderate degree of renovation
0:05:05 > 0:05:07there'd be a comfortable profit.
0:05:07 > 0:05:12You may even think there seem to be no real problems with this house.
0:05:12 > 0:05:14But you'd be wrong.
0:05:15 > 0:05:18Now whenever you buy a house on a road,
0:05:18 > 0:05:22which has any connection with churches you have to be very careful
0:05:22 > 0:05:25about something called chancel repair liability.
0:05:25 > 0:05:27Now this is something that will be revealed
0:05:27 > 0:05:30in the auction legal pack, which your solicitor should check out.
0:05:30 > 0:05:34In olden times all this land would have been owned by the church,
0:05:34 > 0:05:37the parishioners and the rector would have been responsible
0:05:37 > 0:05:39for the repair of that church.
0:05:39 > 0:05:42Over time, obviously, bits of land have been parcelled off and sold
0:05:42 > 0:05:45and yet the responsibility for the repair of the local church
0:05:45 > 0:05:48still rests with the owners of the land
0:05:48 > 0:05:50and in theory they can come to you and say,
0:05:50 > 0:05:53"I tell you what, we need a new church roof." Not good news.
0:05:53 > 0:05:55However, it's easily rectified
0:05:55 > 0:05:59with something called a chancel repair indemnity policy insurance.
0:05:59 > 0:06:02Doesn't cost much, about £100, all problems solved.
0:06:02 > 0:06:04But you've got to make sure that one of those is in place.
0:06:06 > 0:06:09Like the front garden, the back needs taming,
0:06:09 > 0:06:12just to see how much space you have.
0:06:12 > 0:06:17But a happy discovery is this garage with a shared service road.
0:06:17 > 0:06:19If you fancy a bit of the good life,
0:06:19 > 0:06:22there are allotments at the rear where you can grow your own.
0:06:22 > 0:06:26But does the auctioneer who sold it think it will bear fruit
0:06:26 > 0:06:29once planted back on the property market?
0:06:29 > 0:06:31The property here, I suppose,
0:06:31 > 0:06:36is typical of a three-bedroomed townhouse in Mickleover.
0:06:36 > 0:06:39It needs a scheme of upgrading, it's a bit old-fashioned,
0:06:39 > 0:06:43it just needs a bit of a modern touch put to it really.
0:06:43 > 0:06:45When you've done that it will be very saleable,
0:06:45 > 0:06:48it would also rent out very well indeed.
0:06:49 > 0:06:52The rental rates of around £500 per calendar month
0:06:52 > 0:06:54in this area are healthy.
0:06:54 > 0:06:57What about those looking for a quick return on their investment?
0:06:57 > 0:07:01Bearing that guide price of £90,000 in mind,
0:07:01 > 0:07:04what could this sell for once renovated?
0:07:04 > 0:07:06Assuming the job is done well,
0:07:06 > 0:07:08I would think this would go on the market
0:07:08 > 0:07:11at somewhere around £130,000 to £135,000.
0:07:12 > 0:07:15So, a few quirky features and things to look out for,
0:07:15 > 0:07:18but intrinsically, this is a good solid little house.
0:07:18 > 0:07:22And a few careful improvements, I think you can make a big difference.
0:07:22 > 0:07:25A great one to go for. Let's see who bought it at the auction.
0:07:28 > 0:07:31Lot 56 is number 60 Vicarage Road, Mickleover.
0:07:31 > 0:07:34Very popular, ever popular residential location.
0:07:34 > 0:07:37A good opportunity, ladies and gentlemen.
0:07:37 > 0:07:38Who's got 90 to start me?
0:07:38 > 0:07:4090,000?
0:07:40 > 0:07:4290,000 is bid here, thank you.
0:07:42 > 0:07:45Opening bid at 90,000, 91 I have in the middle.
0:07:45 > 0:07:4991, 92. 93 you've bid, 94.
0:07:49 > 0:07:5294, 95, 96.
0:07:52 > 0:07:55At £96,000, I'll take £500 if that'll help you.
0:07:55 > 0:07:5796, five. 97.
0:07:57 > 0:08:0097, five, 98.
0:08:00 > 0:08:0298, five, 99.
0:08:02 > 0:08:0599, five, 100.
0:08:05 > 0:08:06500.
0:08:06 > 0:08:08101.
0:08:08 > 0:08:10100,500 is bid.
0:08:10 > 0:08:12101 quickly.
0:08:12 > 0:08:14At 100,000, 101.
0:08:14 > 0:08:16for the first time.
0:08:16 > 0:08:18Bid's on the second row here, I've taken.
0:08:18 > 0:08:22101,000 for the second time, and 500.
0:08:22 > 0:08:23102?
0:08:23 > 0:08:26101,500.
0:08:26 > 0:08:30Once, twice, third time.
0:08:30 > 0:08:34Sold at 101,500.
0:08:34 > 0:08:38The new owners are father and daughter team, Tony and Alison.
0:08:38 > 0:08:41This is their second investment property together.
0:08:41 > 0:08:44However, it's been ten years since they did the first.
0:08:44 > 0:08:48So I was looking forward to hearing what brought them back for another.
0:08:48 > 0:08:51Alison, Tony, lovely to meet you both.
0:08:51 > 0:08:53- Thank you.- Congratulations.
0:08:53 > 0:08:55Tell me why you wanted to buy the house.
0:08:55 > 0:08:58A few years ago we'd looked at buying a house to rent out
0:08:58 > 0:09:03and it just wasn't appropriate at the time, the housing market was so high.
0:09:03 > 0:09:08And recently it's come right down, so we thought we'll have a look.
0:09:08 > 0:09:10We saw a house that was just a normal house,
0:09:10 > 0:09:14but we couldn't buy it because there were issues with the bank...
0:09:14 > 0:09:17- Right.- So we thought, "Right, we'll try the auction."
0:09:17 > 0:09:20- So we went to the auction and we bought it.- Fantastic.
0:09:20 > 0:09:22And why this house, Tony?
0:09:22 > 0:09:23It seemed a good buy
0:09:23 > 0:09:26- and it was within our price bracket which we got funding for.- Right.
0:09:26 > 0:09:28What kind of experience have you two got?
0:09:28 > 0:09:30Tell me a bit more about you two.
0:09:30 > 0:09:32Yeah, well we've got one.
0:09:32 > 0:09:34Well, dad's got a rental house that he rents out
0:09:34 > 0:09:36that we bought about eight years ago.
0:09:36 > 0:09:39And that's probably why we needed to...
0:09:39 > 0:09:42- Well, we thought we'd get another one and have a go.- Yeah.
0:09:42 > 0:09:45- I bought my house at auction 20 years ago.- Did you?
0:09:45 > 0:09:47Yes. I think Alison bought hers...
0:09:47 > 0:09:49I bought my house at auction ten years ago.
0:09:49 > 0:09:52- Oh, right. These are the houses that you live in?- Yes.- Yes.
0:09:52 > 0:09:56So, not only do father and daughter have auction experience,
0:09:56 > 0:10:00but they've also renovated properties, albeit their own.
0:10:00 > 0:10:03But this time they plan to renovate the house as an investment.
0:10:03 > 0:10:06So, after ten years, whose decision was that?
0:10:09 > 0:10:11Alison is the motivating force.
0:10:12 > 0:10:14I would go into retirement,
0:10:14 > 0:10:18but Alison pushes me and I'm inclined to be pushed quite happily.
0:10:18 > 0:10:21How did you decide to get your dad involved?
0:10:21 > 0:10:24I think, well, we're always doing things together,
0:10:24 > 0:10:28so I mean, it was quite normal just to get in and do it together.
0:10:28 > 0:10:30We tend to work quite well together,
0:10:30 > 0:10:31he'll want to do everything on the cheap,
0:10:31 > 0:10:33I'll want to do everything expensive
0:10:33 > 0:10:36and we'll end up in a good happy medium in the middle so...
0:10:36 > 0:10:37- Is that right?- Yeah.
0:10:37 > 0:10:39What kind of things does Alison want to do
0:10:39 > 0:10:41that you step in and say, "I don't think so"?
0:10:41 > 0:10:45I think she'd go for a top of the range kitchen where I wouldn't.
0:10:45 > 0:10:48It would be solid everything.
0:10:48 > 0:10:50What does dad try and skimp on though?
0:10:50 > 0:10:52- We were talking about lighting... - Yes.
0:10:52 > 0:10:55I was saying it's quite important to get good lighting in
0:10:55 > 0:10:58and he was looking at the lighting in there, saying it's probably OK.
0:10:58 > 0:11:02- You weren't?- Yes, oh, yes.
0:11:02 > 0:11:04You're going to win on that one I hope.
0:11:04 > 0:11:07- I've already won that one. - Unfortunately I expect she will.
0:11:07 > 0:11:11The plan, just clarify exactly what you're going to do to this place.
0:11:11 > 0:11:13Well, the whole house needs a complete strip down,
0:11:13 > 0:11:16we'll get rid of all the wallpaper, paint it up nicely,
0:11:16 > 0:11:20new carpets, or perhaps some laminate through the living room.
0:11:20 > 0:11:23The main thing is the kitchen, so obviously it's in a right state,
0:11:23 > 0:11:26so we need a brand new kitchen in here.
0:11:26 > 0:11:29- We were talking about putting some French doors in.- Mm-hm.
0:11:29 > 0:11:33And at the moment the shape of the kitchen's a bit,
0:11:33 > 0:11:34it's kind of linear,
0:11:34 > 0:11:37so we're going to block up that door and make it go round,
0:11:37 > 0:11:40- so that it's actually kind of a more nice shape.- OK.
0:11:40 > 0:11:44- Any idea how much you're going to spend?- It's whatever you want.
0:11:44 > 0:11:45I was wanting to put some money in
0:11:45 > 0:11:49- and he was like "Oh, no it's my house..."- Yeah.
0:11:49 > 0:11:51- The budget is ten grand.- Right.
0:11:51 > 0:11:53And what's your budget?
0:11:53 > 0:11:54- Five grand.- Five grand.
0:11:58 > 0:12:02- We'll see.- I think it will come out at ten if I'm honest.
0:12:02 > 0:12:04- Right.- I think we might pull under ten.
0:12:04 > 0:12:07We might end up at seven or something.
0:12:07 > 0:12:09Who's going to do the work?
0:12:09 > 0:12:14Bit of everybody, so builders to do the French doors
0:12:14 > 0:12:16and any full building work,
0:12:16 > 0:12:18but stripping the wallpaper,
0:12:18 > 0:12:20I'm looking forward to getting my hands dirty,
0:12:20 > 0:12:23getting the wallpaper off and painting it up.
0:12:23 > 0:12:24- Right.- My wife's the gardener.
0:12:24 > 0:12:28- Right.- And I think she's coming and gardening this afternoon.
0:12:28 > 0:12:31- Great.- When you've gone.- Right. - And a sunny day so...
0:12:31 > 0:12:35- Getting the garden sorted will make a big difference, won't it?- Yes.
0:12:35 > 0:12:37They're certainly keen to get cracking
0:12:37 > 0:12:40and have a clear idea of what they want to do,
0:12:40 > 0:12:42if not exactly how much it will cost.
0:12:42 > 0:12:43I was interested to know
0:12:43 > 0:12:47how much research they'd done on this property.
0:12:49 > 0:12:51There was something unusual with this property -
0:12:51 > 0:12:53this thing with the church land and issues around that.
0:12:53 > 0:12:54What do you know about that, Tony?
0:12:54 > 0:12:57Well, I understand in the 1300s, the church,
0:12:57 > 0:13:03individual churches, had a fund, a property fund, for maintaining.
0:13:03 > 0:13:08In the 1500s, Henry VIII dissolved the monasteries,
0:13:08 > 0:13:09had away with the money,
0:13:09 > 0:13:12but left the liabilities with the land,
0:13:12 > 0:13:16and this has gone on ever since. It's never been repealed.
0:13:16 > 0:13:21Fortunately for us, there was a insurance policy
0:13:21 > 0:13:24which the previous owner had taken out, which has indemnified us
0:13:24 > 0:13:27against such a charge.
0:13:27 > 0:13:29- You've got yourself covered, there's no danger?- Yes.
0:13:29 > 0:13:32The insurance polices aren't expensive, are they?
0:13:32 > 0:13:34It was £95 for 25 years, so it wasn't.
0:13:34 > 0:13:36Yeah, it's worth having.
0:13:36 > 0:13:40So what kind of time scale for getting everything sorted out?
0:13:40 > 0:13:43- Possibly about three months, we were thinking.- Yes.
0:13:43 > 0:13:46- Both on agreement on that?- Yes.
0:13:46 > 0:13:48I'm hoping quicker.
0:13:48 > 0:13:51We were hoping for quicker but things always get in the way,
0:13:51 > 0:13:52you're doing other things,
0:13:52 > 0:13:54hopefully we'll get it done in three months.
0:13:54 > 0:13:57- To get a return on our capital. - Congratulations.
0:13:57 > 0:14:01Can't wait to see how you get on and good luck with it all.
0:14:01 > 0:14:03- Come back and see us again. - We will.
0:14:03 > 0:14:06So, a nice little project for Alison and Tony to take on.
0:14:06 > 0:14:08Big question is, will Tony's desire
0:14:08 > 0:14:11to keep those 1960s fixtures and fittings win through?
0:14:11 > 0:14:14Or will Alison's sense prevail?
0:14:14 > 0:14:16You can find out later in the show.
0:14:20 > 0:14:25I'm in Strood, one of Kent's Medway towns now reinvented as a commuter hotspot
0:14:25 > 0:14:28due to its direct train links to London taking less than an hour.
0:14:28 > 0:14:33Now, in less than a mile from the train station, you're on Broomhill Road,
0:14:33 > 0:14:36one of the most expensive locations in the area.
0:14:36 > 0:14:41It's here I've come to see a piece of land with planning permission for a detached four-bedroomed house
0:14:41 > 0:14:45with a guide price of just £70,000 to £75,000.
0:14:47 > 0:14:52It's that train station that makes all the difference to house prices round here,
0:14:52 > 0:14:55as well as good road links into London.
0:14:55 > 0:15:00On a clearer day than this, there are amazing views of the surrounding area.
0:15:00 > 0:15:03But what about the place I've come to see?
0:15:05 > 0:15:11Now here's some news, I'm told it was the owners of the house next door who originally sold the plot.
0:15:11 > 0:15:14Now that explains why the access is via their driveway.
0:15:14 > 0:15:20Now my first thoughts are, this plot is a reasonable size, it just needs a lot of clearing
0:15:20 > 0:15:23which I think will make it seem so much bigger.
0:15:23 > 0:15:27Now the next thing that occurs to me is it's an odd triangular shape
0:15:27 > 0:15:31and it sort of tapers away at the top end into a bit of a point.
0:15:31 > 0:15:34Now that is a shame because once you've built a good family size home here
0:15:34 > 0:15:38I can't see much space left for a good size family garden.
0:15:38 > 0:15:43'Somebody's done the hard work of getting the plans passed,
0:15:43 > 0:15:49'but it is shared access and there's still a good deal of clearing to be done before the build can begin.
0:15:50 > 0:15:54'Let's have a closer look at those plans.'
0:15:54 > 0:15:57So here are the plans that have been passed.
0:15:57 > 0:16:00Now, I've got mixed feelings about these.
0:16:00 > 0:16:04First of all, the plus points, not including the garage,
0:16:04 > 0:16:07there's 136 square metres of living space
0:16:07 > 0:16:11and each of the four bedrooms are good size doubles, which is fantastic.
0:16:11 > 0:16:16There's parking allocated for three cars and there's an integral garage which is always useful.
0:16:16 > 0:16:18But now for the negatives.
0:16:18 > 0:16:20I think the house is a little top heavy.
0:16:20 > 0:16:24Now I might have suggested turning the garage into an extra room,
0:16:24 > 0:16:29but the conditions under which the plans were passed states that it must remain as parking.
0:16:29 > 0:16:32And I was right, that garden is stingy.
0:16:32 > 0:16:35So it's a good size house but I think a large family,
0:16:35 > 0:16:40well, they may struggle with the way the space is laid out and I think that may limit its market.
0:16:40 > 0:16:46With parking allocated for three vehicles, that doesn't really leave much room for children to play,
0:16:46 > 0:16:49which I think is a real shame.
0:16:49 > 0:16:52Although the downstairs open-plan living room is a good size,
0:16:52 > 0:16:56I think really it could have benefited from another room.
0:17:00 > 0:17:05Every developer needs to be sure what type of blank canvas they're working with,
0:17:05 > 0:17:09and by that I mean what the ground is actually made of,
0:17:09 > 0:17:14particularly as in this case the site is directly next door to a disused chalk quarry.
0:17:14 > 0:17:19Now, behind this old line of fencing here, it drops away dramatically.
0:17:19 > 0:17:23Now, houses are often built in chalky ground,
0:17:23 > 0:17:27even in old quarries themselves, but you need to make sure the chalk is of good quality,
0:17:27 > 0:17:31not crumbling, not disturbed, not softened due to water.
0:17:31 > 0:17:33Foundations in good solid chalk,
0:17:33 > 0:17:37well, they don't need to be anything more than your standard strip foundations,
0:17:37 > 0:17:41but there are occasions when foundations need to be piled
0:17:41 > 0:17:45and that can only be undertaken by specialist contractors.
0:17:45 > 0:17:49Whoever takes this on needs to be sure what sort of build they're embarking on.
0:17:49 > 0:17:55Hopefully not one with large amounts of expensive and time-consuming groundworks.
0:17:55 > 0:17:59And even if that chalky ground doesn't cause building problems
0:17:59 > 0:18:04you're still locating a house very close to the edge of a precipice.
0:18:04 > 0:18:10It's down to the developer to take all necessary safety precautions when it comes to the build.
0:18:10 > 0:18:14What does a local estate agent make of it all,
0:18:14 > 0:18:17especially its location?
0:18:17 > 0:18:21This particular road is full of residential properties,
0:18:21 > 0:18:25it's a wide road, it has lots of land on it, so the properties here
0:18:25 > 0:18:27are the high end of the market.
0:18:27 > 0:18:30So the potential for a good return is there.
0:18:30 > 0:18:34What about the proposal to build a four-bedroomed house on the site?
0:18:34 > 0:18:40Having seen the plans, they seem to have created a large amount of bedrooms in the property.
0:18:40 > 0:18:44The garden could be bigger for this type of property.
0:18:44 > 0:18:50It's great they've given four double bedrooms but if that were to be full of three children and a couple,
0:18:50 > 0:18:53the living space mightn't be big enough for them.
0:18:53 > 0:19:00In an ideal world, I would prefer to not build the garage and have that space as the kitchen,
0:19:00 > 0:19:02and the living area as just the living area.
0:19:02 > 0:19:07That would work better but they're restricted, so there's nothing else they can do regarding that.
0:19:07 > 0:19:13So when the house is complete, what could the owner expect to sell it for in the current market?
0:19:13 > 0:19:16In this current market, a property with four bedrooms in this area
0:19:16 > 0:19:20should achieve between £250,000 and £300,000.
0:19:24 > 0:19:26This let is a tricky triangle.
0:19:26 > 0:19:30It's next to an old quarry and the living space, well, it isn't ideal.
0:19:30 > 0:19:35But the plans have been passed, the house is a good size and it fits into its location.
0:19:35 > 0:19:39And for a guide of only £70,000 to £75,000,
0:19:39 > 0:19:44well, as long as you weren't expecting an instant return on your money, I think it's worth a punt.
0:19:44 > 0:19:46Let's see who agreed at the auction.
0:19:50 > 0:19:53Well, it's a busy auction with plenty of people,
0:19:53 > 0:19:56but who's looking for this plot of land?
0:19:56 > 0:20:03Lot 23 now I go to, which is the land adjoining 64 Broomhill Road in Strood.
0:20:03 > 0:20:06Individual development site for four-bedroomed detached house.
0:20:06 > 0:20:10Worth what, 250, 300 when it's done? Start me where you will on that one.
0:20:10 > 0:20:15By the time this is built the recession will be history, so the price will shoot up.
0:20:15 > 0:20:19Trust me, I'm an auctioneer, I know what I'm saying. £70,000 I'm looking for.
0:20:19 > 0:20:2170,000, £70,000.
0:20:21 > 0:20:24One person trusts me in a room this big. £70,000.
0:20:24 > 0:20:2875 now do I see? 70, is that 75 I have?
0:20:28 > 0:20:32At £75,000 I've got, 78 I'll take. It's in the room, it's here to be sold,
0:20:32 > 0:20:35you're going to miss it and it's good value for money.
0:20:35 > 0:20:38£78,000 I want, 78,000 do I see?
0:20:38 > 0:20:41If not, I'm going to be selling it at £75,000.
0:20:41 > 0:20:48At 75 then, £75,000 I have and I will sell for the first time, £75,000, you're going to miss it,
0:20:48 > 0:20:53for the second time, you'll miss it, I'm not playing, third and final time at £75,000. Too late.
0:20:53 > 0:20:55I've taken that one. £75,000.
0:20:55 > 0:20:57And the number, sir?
0:20:59 > 0:21:03'And the successful bidder was Quentin, who's no stranger to housebuilding.
0:21:03 > 0:21:06'He's built hundreds in the last 20 years.'
0:21:06 > 0:21:08- Quentin, congratulations.- Thank you.
0:21:08 > 0:21:11Tell me why you wanted to buy this plot.
0:21:11 > 0:21:16My son's bought the land, I'm going to build the house for them and then we'll share the profit.
0:21:16 > 0:21:18Tell me a little bit more about your son.
0:21:18 > 0:21:21He races as a professional motorcrosser.
0:21:21 > 0:21:25He was second in the world for the last two years,
0:21:25 > 0:21:30and now his contract's in the United States and California.
0:21:30 > 0:21:33- He hasn't got time for building houses.- No.- It's over to Dad.
0:21:33 > 0:21:36- Absolutely.- And are you quite happy to invest his money for him?
0:21:36 > 0:21:41Yeah, I had to fly out to California for him about three weeks ago to choose a house out there for him.
0:21:41 > 0:21:44He's quite happy for Dad to be spending his money?
0:21:44 > 0:21:47He's bought a house from me on the other site I've built
0:21:47 > 0:21:50and he's bought a house in California and this plot of land so far.
0:21:50 > 0:21:53'So it looks as though, thanks to his son,
0:21:53 > 0:21:58'Quentin has a ready supply of cash to hunt for good sites to build on.'
0:21:58 > 0:22:03- Did you know much about it prior to the auction?- Nothing.- So you went to the auction to buy something?
0:22:03 > 0:22:07- To buy two plots that I'd seen in the catalogue. - And was this one of them?
0:22:07 > 0:22:11- This was one of them, yeah. - How much research had you done into this plot?- Nothing.
0:22:11 > 0:22:17You just turned up on auction day with some money in your pocket to buy a plot that you saw in a catalogue?
0:22:17 > 0:22:21- Yeah.- So you did take a massive gamble here, didn't you?
0:22:21 > 0:22:25- I wouldn't call it a gamble. - Why not?- They're not building any more land.
0:22:25 > 0:22:29- So you think it's worth the money that you've spent?- Yeah, exactly. Yeah.
0:22:29 > 0:22:31'Nothing seems to phase Quentin.
0:22:31 > 0:22:37'It's as if he gives no more thought to buying land than he does to doing a bit of food shopping.'
0:22:37 > 0:22:42How long will it take you to, from start to finish, get this house up on this plot?
0:22:42 > 0:22:48- Um, three months to completion. - And how much money would something like this cost you to build?
0:22:48 > 0:22:51I would have said £40,000 to £50,000.
0:22:51 > 0:22:53Wow. That's quite a good budget.
0:22:53 > 0:22:57- Yeah.- And how do you intend on decking out the interiors?
0:22:57 > 0:23:00I mean is that something you're really gung ho about?
0:23:00 > 0:23:02No, no, I keep it as basic as possible.
0:23:02 > 0:23:08Um, if you sort of personalise something, it's to your own taste
0:23:08 > 0:23:12which other people probably wouldn't like and it gets no extra value whatsoever.
0:23:12 > 0:23:16You could spend £20,000 on the inside and not see £1,000 back.
0:23:16 > 0:23:21Now the thing is, on the ground floor you've got another huge area which is the garage,
0:23:21 > 0:23:23which you have to keep, which has to be parking,
0:23:23 > 0:23:28do you think over time it might be a good idea to think about integrating that into the house?
0:23:28 > 0:23:33What we normally do with garages is construct them in a manner with insulation
0:23:33 > 0:23:35so it can be used as a room later on.
0:23:36 > 0:23:41'Let's not forget the fact this plot is right next to that old quarry.
0:23:41 > 0:23:44'Surely he must have given that a lot of thought before bidding on it?'
0:23:44 > 0:23:47What did you think when you saw that?
0:23:47 > 0:23:49I didn't see it, to be honest.
0:23:49 > 0:23:53Do you think there may be some problems with the chalk that it's on,
0:23:53 > 0:23:57you may have to think about building really deep foundations, or are you happy with that?
0:23:57 > 0:24:01No, because every other house on here is standing.
0:24:01 > 0:24:04- Nothing concerns you about the foundations here at all?- No.
0:24:04 > 0:24:06Chalk is probably one of the best surfaces.
0:24:06 > 0:24:11'Quentin doesn't appear at all worried. I'm amazed at his optimism.'
0:24:11 > 0:24:17How do you feel about building houses in such uncertain times at the moment with the whole economic downturn?
0:24:17 > 0:24:23It's a good time to build because labour's a lot cheaper than normal, it's easy to get men on site,
0:24:23 > 0:24:26and you can get a real good deal with the materials.
0:24:26 > 0:24:30Is it easy finding a buyer at the end of the line, though?
0:24:30 > 0:24:33You'll sell anything at the right price.
0:24:33 > 0:24:36- Will you sell this off a bit cheaper than you would normally?- Yeah.
0:24:36 > 0:24:41If I can achieve £220,000, I'll be more than happy.
0:24:41 > 0:24:45- £220,000?- Yes.- Even though the estate agent thinks it's worth over 250?
0:24:45 > 0:24:47If you wanted to wait.
0:24:47 > 0:24:49And do you have a buyer for this?
0:24:49 > 0:24:53Yeah. I've got two people - two different people that want to buy it.
0:24:53 > 0:24:59'He seems very sure of himself, even though he hadn't checked this land out before buying it.
0:24:59 > 0:25:04'But then, it's the confidence that comes from building houses since he was 18 years old.'
0:25:04 > 0:25:07- Nothing's worrying you about this?- Nothing.
0:25:07 > 0:25:10- Well, it'll be interesting to come back and see how it all went.- Yeah.
0:25:10 > 0:25:16- And see this magnificent house standing.- It won't be long.- I'll be looking forward to that.- Me too.
0:25:16 > 0:25:18- Really nice to meet you. Well done. Thank you.- Thanks.
0:25:20 > 0:25:23Well, Quentin's confident.
0:25:23 > 0:25:26His experience means that this project is no big deal for him,
0:25:26 > 0:25:30but I think he needs to take a good hard look over that fence
0:25:30 > 0:25:33and consider, well, this may be a bigger job than he thought.
0:25:33 > 0:25:36You can find out how it all goes later in the show.
0:25:38 > 0:25:43Coming up, there's quite a lot to take in when we visit this five-bedroomed house in Kettering.
0:25:43 > 0:25:46What more am I going to find in this extraordinary house?
0:25:48 > 0:25:55We'll find out if Quentin has chalked up another build on that plot of land in Rochester, Kent.
0:25:58 > 0:26:03But first, it's back to Derby to see how this father and daughter team got on.
0:26:03 > 0:26:07Most of the time well, every now and then we have a big row.
0:26:11 > 0:26:15Earlier, we met father and daughter developing duo, Tony and Alison,
0:26:15 > 0:26:22who bought this three-bedroomed townhouse in Derby at auction for £101,500.
0:26:22 > 0:26:28They plan to renovate it and rent it out but have different ideas on how much it would cost.
0:26:28 > 0:26:30The budget is ten grand.
0:26:30 > 0:26:32Right. And what's your budget?
0:26:32 > 0:26:33- Five grand.- Five grand.
0:26:36 > 0:26:41'Five months later, we've returned to see how they've got on with the renovations and each other.
0:26:41 > 0:26:43'Any more disagreements?'
0:26:43 > 0:26:47- None.- We did have disagreements.- We have disagreements on the budget, of course.
0:26:47 > 0:26:52They may not have agreed on how much but when it came to transforming this house,
0:26:52 > 0:26:54that's something they both said yes to.
0:27:02 > 0:27:08It's been nearly a decade since Tony and Alison last renovated a property together.
0:27:08 > 0:27:15It's clear they've lost none of their skills, as this renovation shows, starting with the kitchen.
0:27:15 > 0:27:20Right, there were two doors, one into a pantry and one into the garden.
0:27:20 > 0:27:27We've bricked up the pantry door, retained the door to the garden as an entrance to a utility room
0:27:27 > 0:27:31which we'll put a washing machine in, we've plumbed for a washing machine,
0:27:31 > 0:27:34and we've retained the pantry at the rear,
0:27:34 > 0:27:38which we feel gives a nice utility room, an additional room to the house.
0:27:38 > 0:27:42Throughout the house, the standard of renovation is so high
0:27:42 > 0:27:46that I was slightly surprised to hear they'd done much of it themselves.
0:27:46 > 0:27:50We had the kitchen floor tiled and we found it was...
0:27:50 > 0:27:53you got a professional tiler in and we found it quite expensive.
0:27:53 > 0:27:57We didn't think it was any better than what we could have done ourselves
0:27:57 > 0:28:00so I said, "I'll tile the bathroom myself,"
0:28:00 > 0:28:04- and yes, we've done quite well, I think.- Yeah, I think Alison and husband.
0:28:04 > 0:28:08Yeah, me and my husband. He'd get angry if I didn't mention him.
0:28:08 > 0:28:14So it's very much a family affair and as is often the case with renovating properties,
0:28:14 > 0:28:19you often uncover old family treasures that have been concealed for many years.
0:28:19 > 0:28:21While we were cleaning the garden,
0:28:21 > 0:28:24we found this fishing reel which is a Grace & Young
0:28:24 > 0:28:27and I understand it's a treasured possession among fishermen,
0:28:27 > 0:28:31they pass it down from grandfather to grandson
0:28:31 > 0:28:36and it's of relative value which ultimately we hope to sell on.
0:28:36 > 0:28:39We also found this cup which is very interesting.
0:28:39 > 0:28:43It was from the LMS Railway Company in Derby.
0:28:43 > 0:28:47It's a football cup from 1943.
0:28:47 > 0:28:52The winner won the football league for that area
0:28:52 > 0:28:55and it will be nice to return it to its family.
0:28:57 > 0:29:00That wasn't all they uncovered in the garden.
0:29:00 > 0:29:05There were two apple trees planted when the house was built by the original owner.
0:29:05 > 0:29:08One was a cooker and one was an eater.
0:29:08 > 0:29:11They're still in the garden and they bear a lot of fruit.
0:29:11 > 0:29:15'And it's fair to say that the apple hasn't fallen far from the tree.
0:29:15 > 0:29:18'Alison was the driving force behind this renovation,
0:29:18 > 0:29:24'but did they establish who was right about those budget predictions?'
0:29:24 > 0:29:27I think I was closer because we came in just under £9,000
0:29:27 > 0:29:30and I think both of us feel that was actually...
0:29:30 > 0:29:35we'd actually got ten grand to spend so we've got a bit spare, haven't we?
0:29:35 > 0:29:38- Yeah. We feel that we've done well for our budget.- Yeah.
0:29:38 > 0:29:42'It's great that they've come in on time and on budget.
0:29:42 > 0:29:46'But a decade on since their last renovation project, did they enjoy it?'
0:29:46 > 0:29:49'I've loved doing this project,'
0:29:49 > 0:29:53although if you say, "Should I do another one straightaway?", the answer's no.
0:29:53 > 0:29:57But maybe in a year or two I might have another go at one but I've very much enjoyed doing it.
0:29:57 > 0:29:59But it takes a lot of time and effort.
0:29:59 > 0:30:05I think the overall appearance of everything we've achieved really in a relatively short time,
0:30:05 > 0:30:08be it hard work, but I think we've achieved a lot.
0:30:08 > 0:30:11They certainly have.
0:30:11 > 0:30:16But did they do enough to entice buyers or tenants to this newly renovated house?
0:30:16 > 0:30:21After buying at auctions for £101,500, they've spent £9,000 turning it around.
0:30:21 > 0:30:25Will two local estate agents agree it's been worthwhile?
0:30:36 > 0:30:38First impressions - great.
0:30:38 > 0:30:40It's been done to a nice standard.
0:30:40 > 0:30:44They've put some nice quality touches in with the floor in the front room
0:30:44 > 0:30:47and followed it through with a tiled floor in the kitchen.
0:30:47 > 0:30:49I think the standard of work here is really good
0:30:49 > 0:30:52and they've put a new kitchen in which is good.
0:30:52 > 0:30:56There's double doors downstairs which helps keep things open and it's good.
0:30:56 > 0:31:01I think the standard they've brought it up to is absolutely perfect for the type of property.
0:31:01 > 0:31:05They've done it to a nice style but it's not, you know, not overspent.
0:31:05 > 0:31:09All heartening comments, but what do they mean for the overall value?
0:31:09 > 0:31:14The total spend was £110,500 to buy and renovate the house,
0:31:14 > 0:31:17so what's it worth on today's market.
0:31:17 > 0:31:23If you were to put this property on the open market, I would expect an offer between £120,000 and £125,000.
0:31:23 > 0:31:25If I was to put the property on the market,
0:31:25 > 0:31:28I'd be expecting to achieve between £120,000 and £125,000.
0:31:28 > 0:31:33We weren't planning to sell. We bought at the bottom of the market because of this crash recently.
0:31:33 > 0:31:38It's quite low at the moment so we had intended to rent and I think we're going to...
0:31:38 > 0:31:41- Yes, we'll continue with the rental. - Rental, yeah.
0:31:41 > 0:31:46What level of rental could they expect for this newly renovated three-bedroomed house in Derby?
0:31:46 > 0:31:49If we were to put this property on the market for rental
0:31:49 > 0:31:53I would imagine that we could achieve £550 per calendar month.
0:31:53 > 0:31:58If I put this property up for rent, I'd expect to achieve £550 per calendar month.
0:32:01 > 0:32:03550 sounds quite good.
0:32:03 > 0:32:09We originally thought 500 and our agent that we're currently working with has suggested 575
0:32:09 > 0:32:14which is what we've advertised it at and we've had a lot of interest at that value.
0:32:14 > 0:32:17We've had people knocking on the door while we were doing the alterations,
0:32:17 > 0:32:21- asking when it's available. - We've got viewings tomorrow.
0:32:22 > 0:32:26'I get the feeling they won't have any trouble renting this out,
0:32:26 > 0:32:31'and this time, father and daughter definitely agree on their verdict.'
0:32:31 > 0:32:33- It's been a very good project...- Yes. - I think we...
0:32:33 > 0:32:35Looking back, it's been enjoyable.
0:32:35 > 0:32:38Yeah. Very much enjoyed it and I'm glad we did it.
0:32:41 > 0:32:47Today I'm in Northamptonshire in the small town of Desborough, just outside Kettering.
0:32:47 > 0:32:55This place is full of Victorian and Edwardian houses that went up during the housing boom in the early 1900s.
0:32:55 > 0:32:58The property I've come to see is typical of that era.
0:33:00 > 0:33:05I'm here to see something that sounds almost too good to be true -
0:33:05 > 0:33:13three-storey, Victorian mid-terrace, five bedrooms, had a guide price of just £48,000. This is it.
0:33:13 > 0:33:16Let's see what delights are in store.
0:33:22 > 0:33:25I don't know about delights.
0:33:25 > 0:33:27More like horrors, I think.
0:33:27 > 0:33:30Oh, my word, what is going on in this place?
0:33:30 > 0:33:33Bits of building materials all over the place.
0:33:33 > 0:33:37You've got stairs up to the bedrooms and other stuff there, I presume.
0:33:37 > 0:33:40Walk down the corridor, bits of door sort of hanging off.
0:33:40 > 0:33:42Cellar down there, a kitchen...
0:33:42 > 0:33:47which I think, well, you CAN'T get into for all this clutter.
0:33:49 > 0:33:53And, OK, well, surprise, surprise, it doesn't get any better in the lounge.
0:33:55 > 0:33:58Ta-da! I'm the king of a rubbish castle.
0:33:58 > 0:34:00Oh, my word.
0:34:00 > 0:34:03This is horrendous.
0:34:09 > 0:34:11It's a mess all right.
0:34:11 > 0:34:16Goodness knows what's been going on here, but that's not our concern.
0:34:16 > 0:34:21However, it comes with the purchase, so whoever bought it at auction is responsible for clearing it.
0:34:21 > 0:34:24It's almost impossible to see exactly what's here
0:34:24 > 0:34:28which makes it very difficult to figure out what work is needed,
0:34:28 > 0:34:32however it's a relief to see some original features poking out from under all this clutter.
0:34:32 > 0:34:37Through to the back, and there is a garden somewhere underneath all that.
0:34:41 > 0:34:46Oh, heaven knows what sort of delights are going to be in store on the next floor.
0:34:46 > 0:34:51Well, actually, before I go anywhere else, that is a serious issue.
0:34:51 > 0:34:54That's a doorway through to the neighbouring property.
0:34:54 > 0:34:58I mean, it's been blocked up but clearly easy access to next door.
0:34:58 > 0:35:01This is a separate property to that so that's somebody else's house.
0:35:01 > 0:35:05This is what you call a party wall between the properties.
0:35:05 > 0:35:09The Party Wall Act says you have to have approval from the neighbouring property
0:35:09 > 0:35:13before you can do anything to the party wall, like blocking this up.
0:35:13 > 0:35:17The problem is, if that property is not occupied you can't ask anyone for approval,
0:35:17 > 0:35:21so that could really delay doing up this house.
0:35:21 > 0:35:23And that's on top of all the other problems.
0:35:25 > 0:35:28What about the bedrooms on this floor?
0:35:28 > 0:35:34More of the same, but judging from the amount of stuff piled in each, they must be a fairly good size.
0:35:34 > 0:35:38There's also a bathroom, er, at least I think that's what it is.
0:35:44 > 0:35:48You come upstairs in sort of trepidation.
0:35:48 > 0:35:51What more am I going to find in this extraordinary house?
0:35:51 > 0:35:53But you know what?
0:35:53 > 0:35:54Actually it looks like it's OK.
0:35:54 > 0:35:58A bedroom I can actually see into there which isn't too bad,
0:35:58 > 0:36:01another bedroom there and the final bedroom here.
0:36:01 > 0:36:05Well, one thing for sure, the house has a lot of rooms
0:36:05 > 0:36:09and at least up here you can see them, and that's the key, isn't it?
0:36:09 > 0:36:12The rest of the house is so full you haven't got a clue what you've got,
0:36:12 > 0:36:15but start to get rid of some of the clutter
0:36:15 > 0:36:20and what's revealing itself, I think, a very interesting property.
0:36:24 > 0:36:29I can now begin to understand why this place had such a low guide price of just £48,000.
0:36:29 > 0:36:34But there must be some room for profit, even with the inevitable renovation costs,
0:36:34 > 0:36:37so I've invited a local estate agent along
0:36:37 > 0:36:42to get an opinion of the potential here.
0:36:42 > 0:36:46This house was owned as, with the other two houses next door,
0:36:46 > 0:36:49and it had been run, I believe, as part of a restaurant premises
0:36:49 > 0:36:53which failed some time ago and presumably some time in the recent past
0:36:53 > 0:36:57it's been sold off on its own and is about to be sold again.
0:36:57 > 0:37:02That may well account for the two boarded up doorways on the ground and first floors.
0:37:02 > 0:37:04What about its current condition?
0:37:04 > 0:37:07Well, I've seen houses like this that look as though
0:37:07 > 0:37:11somebody's done a moonlight flit and it's full of stuff.
0:37:11 > 0:37:14It usually happens in houses that have been repossessed.
0:37:14 > 0:37:19It looks very sad, it's pretty packed out and there's a lot of clearance to be done.
0:37:19 > 0:37:23This house, underneath it all,
0:37:23 > 0:37:27could offer somebody a very good family home or a work-home environment.
0:37:27 > 0:37:30It's got a new roof on it, chimneys have been rebuilt,
0:37:30 > 0:37:34so it looks like it's watertight from the top down which is always a good sign.
0:37:34 > 0:37:39But there is a huge amount to do, although with the amount of ground out the back of it,
0:37:39 > 0:37:42in this central location, it offers considerable potential.
0:37:42 > 0:37:45All done up, what could this house sell for?
0:37:45 > 0:37:49Once it's renovated and if it's kept as a house,
0:37:49 > 0:37:51then I think the final value
0:37:51 > 0:37:56is probably no more than about £115,000, £120,000 at the present time.
0:37:56 > 0:37:58What about its rental potential?
0:37:58 > 0:38:00If this is a straightforward rental
0:38:00 > 0:38:07as one property in this location, given the way the rental market is behaving at the moment,
0:38:07 > 0:38:12I think the rental value is probably somewhere around £550 to £600 a month.
0:38:15 > 0:38:17Wow! Well, for me, you know what?
0:38:17 > 0:38:21The problem with this place is not the amount of rubbish you've got in here.
0:38:21 > 0:38:23Five, ten skips to get rid of that.
0:38:23 > 0:38:26The big issue is that party wall situation
0:38:26 > 0:38:29because that can really put a massive fly in the ointment.
0:38:29 > 0:38:33Not one for the unwary. Let's see who bought it at the auction.
0:38:39 > 0:38:43Lot number 22 is 15 Station Road, Desborough in Kettering.
0:38:43 > 0:38:50It's an exceedingly large five-bedroomed Edwardian house in need of considerable modernisation.
0:38:50 > 0:38:52The guide price is 48 plus.
0:38:52 > 0:38:57That sounds to me as if it ought to be fetching 60-odd, but let's start at 55.
0:38:57 > 0:38:5955? Who's got 50,000?
0:38:59 > 0:39:0248 is the guide price. 48?
0:39:02 > 0:39:0448 is bid here, thank you.
0:39:04 > 0:39:06At £48,000.
0:39:06 > 0:39:09At £48,000 bid. 49 somewhere?
0:39:09 > 0:39:1349, thank you. 49, 50 at the back.
0:39:13 > 0:39:1450,000, 51, 51.
0:39:14 > 0:39:1852, a fresh bidder, 53. 53.
0:39:18 > 0:39:2154? 54. 55.
0:39:21 > 0:39:2455.5. 56 is bid.
0:39:24 > 0:39:2956. Five? At £56,000. 56.5?
0:39:29 > 0:39:32It's on the market, ladies and gentlemen. At £56,000 we're selling.
0:39:32 > 0:39:3656.5, 57 is bid.
0:39:36 > 0:39:3857, come again, sir?
0:39:38 > 0:39:4357.5, 58, 58.5?
0:39:43 > 0:39:45£58,000, against you.
0:39:45 > 0:39:50At 58.5, 59, 59.5 I have.
0:39:50 > 0:39:5460,000. And 500, 61.
0:39:54 > 0:39:5661,500?
0:39:56 > 0:39:58Now or not?
0:39:58 > 0:40:03At £61,000 on the right, for the first time,
0:40:03 > 0:40:06for the second time, third and last opportunity, any higher bid than 61?
0:40:07 > 0:40:10Sold to you, sir, at £61,000. Thank you.
0:40:10 > 0:40:15'The successful bidder is pizza chef and first-time property developer Pascali.
0:40:15 > 0:40:20'I caught up with him and his daughter, Cat, back at their new investment.'
0:40:20 > 0:40:23- Cat, Pascali, lovely to meet you both.- Hello.- Hi.
0:40:23 > 0:40:26- You've got shares in a skip company perhaps?- No, we don't.
0:40:26 > 0:40:29- Be a good thing to have. - Be cheaper if we did have.- Yeah.
0:40:29 > 0:40:32So why did you want to take on the house?
0:40:32 > 0:40:34Never realised it was in such a situation.
0:40:34 > 0:40:36- You didn't?- No.- You didn't come in?
0:40:36 > 0:40:42Had a glance outside but didn't realise how lovely it was inside.
0:40:42 > 0:40:47So what did you think when you first came through the door?
0:40:47 > 0:40:49What the hell have I done?
0:40:49 > 0:40:52I thought it was quite exciting. I thought, "Oh, no problem."
0:40:52 > 0:40:56And then we got further in and just thought, "Oh, no."
0:40:56 > 0:40:58So tell me about you two, then.
0:40:58 > 0:41:02I've got the brains, he's got the money, and we work fine together.
0:41:02 > 0:41:06'If she's the brains of the outfit, maybe Cat should have done the bidding,
0:41:06 > 0:41:09'after all she's been studying business and economics at college.
0:41:09 > 0:41:13'I can't believe that as a first-time buyer Pascali didn't take a close look
0:41:13 > 0:41:17'at this property before the auction.'
0:41:17 > 0:41:18OK, so why property, then?
0:41:18 > 0:41:20Why go into this venture?
0:41:20 > 0:41:26We thought, "Money's not worth nothing in the bank and hey presto, buy a house."
0:41:26 > 0:41:29If you can call it that just yet.
0:41:29 > 0:41:32Why this house?
0:41:32 > 0:41:34The spur of the moment.
0:41:34 > 0:41:38That's the only explanation I can give you.
0:41:38 > 0:41:41How much a spur of the moment was it?
0:41:41 > 0:41:45We weren't even looking into the house, he thought, "Ooh!"
0:41:45 > 0:41:50looked at the price tag and thought, "Yeah, why not?" And we're not too worried.
0:41:50 > 0:41:53- Everyone else is worried. - Who else is worried?
0:41:53 > 0:41:56The rest of the family. My mum.
0:41:56 > 0:41:59- So who influenced this decision to go into property?- Nobody.
0:41:59 > 0:42:03- It was just spur of the moment. - And then once he had the idea...
0:42:03 > 0:42:07- I actually came down to see the Ritz next door...- Right.
0:42:07 > 0:42:12And I looked at the tag and I said, "Hey, £48,000, any mug can go for that."
0:42:12 > 0:42:14And one did.
0:42:19 > 0:42:25In this case, Pascali's potentially serious mistake was not seeing it before he bought it.
0:42:25 > 0:42:28Once the house has been cleared, he'll feel better about it,
0:42:28 > 0:42:30and he can get on with the renovations.
0:42:33 > 0:42:36- So have you ever done anything like this before?- No.
0:42:36 > 0:42:40- Not quite to this extent. - I've changed a door.
0:42:40 > 0:42:43I've plugged a hole up.
0:42:43 > 0:42:47But basically that's my knowledge of DIY.
0:42:47 > 0:42:52So how much money have you got sort of set aside to do what you need to do to this place?
0:42:52 > 0:42:55Well, I allocated £5,000.
0:42:55 > 0:42:57- £5,000?- Yeah.
0:42:57 > 0:43:03- That was before I moved in, before I looked around, but obviously five... - That's not enough for one room, Dad.
0:43:03 > 0:43:08I don't five's going to go very far but that's all I had the intention of spending in it.
0:43:08 > 0:43:12What about you, Cat? How much do you think it will cost to get it up to scratch.
0:43:12 > 0:43:15I'd say ten a floor, at a push.
0:43:15 > 0:43:19So if it was ten grand per floor, £30,000 in total, would that be a big problem?
0:43:19 > 0:43:22£30,000 would be a big problem, yes.
0:43:22 > 0:43:26I'll be satisfied for ten the whole lot.
0:43:26 > 0:43:27It's not possible, Dad.
0:43:27 > 0:43:30- There's no way.- Mission impossible.
0:43:33 > 0:43:37Oh, dear, oh, dear, things are going from bad to worse.
0:43:37 > 0:43:41This house is going to need serious investment to get the most out of it,
0:43:41 > 0:43:45but how much depends on what Pascali plans to do with it.
0:43:46 > 0:43:53That'll have to be answered later on when I actually see what needs to be done here.
0:43:53 > 0:43:59Once it's cleaned and cleared, then I think there'll be more of an idea of what can be done.
0:43:59 > 0:44:03In terms of what you sort of think it might be? One house, flats?
0:44:03 > 0:44:07We're going to live in it for a while and see how it goes.
0:44:07 > 0:44:09- You're going to live in it?- Try to.
0:44:09 > 0:44:13Or rent it, or sell it. Whatever comes first.
0:44:13 > 0:44:16- We haven't got a clue. - We haven't got a clue so we'll play it by ear
0:44:16 > 0:44:22and see how far the finances stretch and how deep we get buried in it.
0:44:25 > 0:44:29Just, everyone, fingers crossed for us and wish us luck, we'll be all right.
0:44:35 > 0:44:37What can you say?
0:44:37 > 0:44:42Erm, Cat and Pascali breaking every single rule in the book.
0:44:42 > 0:44:46So many challenges facing them, some of which they don't even know about yet
0:44:46 > 0:44:49because they haven't even read the legal pack.
0:44:49 > 0:44:54But lovely people and, fingers crossed, it will turn out OK.
0:44:54 > 0:44:57You can find out later in the show.
0:44:59 > 0:45:04Well, the months have gone by and it's time to go back and see how our buyers have got on.
0:45:04 > 0:45:09- Will we see a finished masterpiece or a blank canvas?- Let's find out.
0:45:12 > 0:45:15Remember this plot of land in Strood?
0:45:15 > 0:45:18There was planning permission to build a four-bedroomed house,
0:45:18 > 0:45:22but it was on a precipice right next to a disused quarry.
0:45:22 > 0:45:28Builder Quentin bought it at auction for £75,000.
0:45:28 > 0:45:30Third and final time, at £75,000.
0:45:30 > 0:45:37'He's built hundreds of houses and a sheer drop off the side of this plot didn't seem to worry him at all.'
0:45:37 > 0:45:40Every other house on here is standing.
0:45:40 > 0:45:44'He was confident he'd have a house on this site within two to three months.
0:45:44 > 0:45:48'So let's find out how he's been getting on.
0:45:51 > 0:45:58'We returned eight months later to find that Quentin's built a brand new house, just as he said he would.'
0:46:01 > 0:46:07Obviously we started clearing the ground, then we dug the footings out, concreted.
0:46:07 > 0:46:12We raised the house up 600 mil because we wanted to get the river view from the top windows.
0:46:12 > 0:46:15Also we wanted to change the garage into a dining room,
0:46:15 > 0:46:19so for those two reasons we had to go back to planning.
0:46:19 > 0:46:23'It took 12 weeks for the new plans to be approved, but I think Quentin was right to wait
0:46:23 > 0:46:28'as it added another much needed room downstairs.
0:46:29 > 0:46:33'But what about that deep drop at the side?'
0:46:33 > 0:46:37Yeah, we are next to a quarry but it didn't cause us any problems whatsoever.
0:46:37 > 0:46:42All we had to do was get a ground survey report, that was all, and that satisfied building control.
0:46:45 > 0:46:48'It's been a nice job to work on.
0:46:48 > 0:46:50'We like to go for a good quality finish.'
0:46:50 > 0:46:54It's first impressions when a prospective buyer walks in,
0:46:54 > 0:46:58so we don't use laminate we use genuine oak flooring,
0:46:58 > 0:47:03try to go for nice chrome fittings, decent tiles in the bathrooms.
0:47:03 > 0:47:07'What plans does he have for his new house?'
0:47:07 > 0:47:13The plan is to put it on the market next week and hopefully sell it.
0:47:13 > 0:47:17I had one estate agent come round and value it at 320, 300 to 320,
0:47:17 > 0:47:21but I'm actually looking for about £250,000.
0:47:21 > 0:47:25The reason I'm putting it on for 250 is because we've got another site of four houses
0:47:25 > 0:47:31to move straight onto and with the finances with the banks at the moment
0:47:31 > 0:47:37you can't actually borrow any money, so we need to sell this quickly to finance the next project.
0:47:37 > 0:47:39Here we have the upstairs.
0:47:39 > 0:47:44It's completely as planned, four bedrooms, all good size.
0:47:44 > 0:47:47We've got an en suite bathroom there, main bathroom.
0:47:47 > 0:47:53There's going to be cupboards in each bedroom which haven't been fitted yet but sliding wardrobes.
0:47:53 > 0:47:57The upstairs has come up really nice, we're really pleased with it,
0:47:57 > 0:48:00especially the nice contemporary staircase.
0:48:00 > 0:48:04It's the first time we've fitted one of that style,
0:48:04 > 0:48:06which I'm very pleased with.
0:48:06 > 0:48:11With the kitchen we've gone for white high-gloss units
0:48:11 > 0:48:15with high-gloss worktops and splash-backs.
0:48:15 > 0:48:21All stainless steel appliances, it's got an integrated dishwasher,
0:48:21 > 0:48:25washing machine, tumble drier and an American fridge-freezer.
0:48:25 > 0:48:31By including all those items in a renovation, Quentin estimates his budget to be £65,000.
0:48:31 > 0:48:38Add that to the £75,000 he paid for this land and anything over £140,000 will be a comfortable profit.
0:48:57 > 0:48:59'Good size house,'
0:48:59 > 0:49:01nice looking house, good location.
0:49:01 > 0:49:03It's one of the better roads in Strood.
0:49:03 > 0:49:10One of the changes in the planning was to take away the integral garage and replace it with a dining room.
0:49:10 > 0:49:13In this instance, I think it was a very good move indeed.
0:49:13 > 0:49:16Had the garage been downstairs, the property would be top heavy.
0:49:16 > 0:49:19You've lost a garage but you've got off-road parking.
0:49:19 > 0:49:21I think it works really well.
0:49:21 > 0:49:23Remember, Quentin bought the plot for £75,000
0:49:23 > 0:49:27and spent a further £65,000 building this four-bedroomed house on it,
0:49:27 > 0:49:32a total outlay of £140,000.
0:49:32 > 0:49:35What would it be worth if he sold it in the current market?
0:49:35 > 0:49:39I would probably say £275,000.
0:49:39 > 0:49:45For a quick sale, you might even take £250,000, keep it just under the stamp-duty threshold.
0:49:45 > 0:49:49I'd put the property on the market for £275,000.
0:49:49 > 0:49:52He would probably need to take an offer between 250 and 260.
0:49:52 > 0:49:59In terms of a rental, you ought to get something like £1,100 a calendar month.
0:49:59 > 0:50:02I think with the small garden and the lack of a garage,
0:50:02 > 0:50:05you may have to go down to £1,000 per calendar month.
0:50:05 > 0:50:08It would achieve a rental of £1,000 a month.
0:50:08 > 0:50:13Remember, Quentin didn't do this project for himself, so where's the profit going?
0:50:13 > 0:50:20Profit-wise, Tom put up the money so he'd probably get £120,000 profit and I'd just take £10,000.
0:50:20 > 0:50:23And I'm sure that will go down very well with Tom.
0:50:26 > 0:50:33When buying at auction it's preferable to do your research BEFORE you start to bid,
0:50:33 > 0:50:35so you know exactly what you're bidding for
0:50:35 > 0:50:39and any potential problems there may be if you're successful.
0:50:39 > 0:50:46Otherwise, like Pascali, you could buy a five-bedroomed Victorian villa in Kettering for £61,000
0:50:46 > 0:50:49on the spur of the moment and only then take a look inside.
0:50:53 > 0:50:58What did you think when you first came through the door?
0:50:58 > 0:51:00What the hell have I done?
0:51:09 > 0:51:11Not a particularly auspicious start
0:51:11 > 0:51:16for what was this father and daughter's first ever renovation project.
0:51:16 > 0:51:20However, Pascali was confident this would not be a mistake.
0:51:20 > 0:51:24Four months later, we went back to see how things went.
0:51:25 > 0:51:29Well, since you were last here not a lot has changed.
0:51:29 > 0:51:35We've took a lot of the rubbish away and we've cleaned most of the unnecessary junk
0:51:35 > 0:51:38and we're still in the process of cleaning.
0:51:42 > 0:51:48In fact it was Pascali's daughter, Cat, and her friends who were responsible for clearing the house.
0:51:48 > 0:51:52That took about five skips and several trailer loads,
0:51:52 > 0:51:58but at least then he could finally see what he's got for his £61,000.
0:51:58 > 0:52:02Well, this room where you couldn't even walk into it at one stage
0:52:02 > 0:52:10and now we've sort of managed to get the doors opened, cleared it out, and we've seen what's happening.
0:52:10 > 0:52:17Window needs replacing, the floorboards taken up, and a few other little cracks.
0:52:17 > 0:52:18The place is not too bad.
0:52:18 > 0:52:22Thankfully the structure of the house is in good condition
0:52:22 > 0:52:26so there's nothing that will worry Pascali too much.
0:52:26 > 0:52:31However, there was a potential problem with access to the property next door,
0:52:31 > 0:52:33something he has now sorted out.
0:52:34 > 0:52:37I am allowed to block off the entrances in the house
0:52:37 > 0:52:41but I'll have to leave a right of way across the back of the garden.
0:52:41 > 0:52:47That access will be much easier once the garden is cleared as well.
0:52:47 > 0:52:52As Pascali hadn't looked at the property before buying, the £5,000 budget he had in mind
0:52:52 > 0:52:55was dwarfed by the amount of work needed.
0:52:55 > 0:52:59Four months on, has he figured out how much this will cost to renovate?
0:53:01 > 0:53:03I did think we were going to get away with a lot less
0:53:03 > 0:53:09and we are going to have to spend but unfortunately that's the way it goes.
0:53:09 > 0:53:12So, like the pizzas in his family restaurant,
0:53:12 > 0:53:19this renovation is looking more deep-pan than thin-crust and will certainly be a family-sized project.
0:53:19 > 0:53:24Pascali would have suffered from indigestion when he came face-to-face with what he bought,
0:53:24 > 0:53:31but now he's taken the first few bites out of this property, does it leave a nicer taste in his mouth?
0:53:33 > 0:53:36I'm getting happier and happier as the days go by
0:53:36 > 0:53:41because you can see that there's not a lot of structural work to be done,
0:53:41 > 0:53:44it's just all cosmetic, and once the cosmetic has been done,
0:53:44 > 0:53:47then as far as I'm concerned, I have a nice deal.
0:53:47 > 0:53:51Pascali is still unsure what he wants to do with this house,
0:53:51 > 0:53:55although it's likely his daughter will move in once it's in better condition.
0:53:55 > 0:54:03He paid £61,000 for it, so let's see if two local estate agents can help him see the potential
0:54:03 > 0:54:05of this five-bedroomed property.
0:54:18 > 0:54:21It seems like a completely different property.
0:54:21 > 0:54:24I dread to think how many skips would have been used to clear it,
0:54:24 > 0:54:26but we can actually get in it now
0:54:26 > 0:54:28and see it for what it is, so big improvement.
0:54:28 > 0:54:34A lot of work to be done now, but I suspect a lot of hard work's gone in to getting it this far.
0:54:34 > 0:54:37I don't think I'd spend too much money on this house.
0:54:37 > 0:54:40There's a limit to what you'll get out of it in the long run,
0:54:40 > 0:54:45but I think you could completely refit it, completely modernise it.
0:54:45 > 0:54:51I don't think I'd go to any great expense, I wouldn't extend, or you won't get your money back.
0:54:51 > 0:54:55The best options for the use of this property are perhaps as a family home,
0:54:55 > 0:55:01more likely, I still think it's going to appeal to somebody who might want look for planning consent
0:55:01 > 0:55:05to run an office from downstairs and have a rather nice apartment upstairs.
0:55:05 > 0:55:08I think the location just cries out for that.
0:55:08 > 0:55:11Plenty for Pascali to think about there.
0:55:11 > 0:55:16But once it's renovated, what kind of rental return could he hope to get in this area?
0:55:18 > 0:55:26If you do the minimum on this to make it habitable, then you're probably only looking at about £600 a month.
0:55:26 > 0:55:30This property would rent out well. I think you would probably get about £600 per month for it.
0:55:30 > 0:55:34What does he think of that?
0:55:34 > 0:55:35Wow!
0:55:36 > 0:55:41I'm speechless, I'm sorry. Yeah, that's good.
0:55:41 > 0:55:44Well, that's certainly put a smile on his face,
0:55:44 > 0:55:49but he may need to invest a little more on top of his £61,000 purchase price
0:55:49 > 0:55:52to bring this house up to a reasonable standard.
0:55:52 > 0:55:54What about selling it, then?
0:55:56 > 0:55:59If you were to put it on the market now, as it stands,
0:55:59 > 0:56:04you would probably kick off just below 100, with a view to getting 85, £85,000.
0:56:04 > 0:56:09Improved on a basic refurb, I'd put it on the market at about £125,000.
0:56:09 > 0:56:15That sounds like a good return, but remember Pascali would still have to deduct the cost of renovating this
0:56:15 > 0:56:18up to a standard deserving of those valuations.
0:56:18 > 0:56:21Is that enough to tempt him?
0:56:21 > 0:56:29No, no. I think I'll still keep plodding along, do it up and then look at it that way.
0:56:29 > 0:56:32But I like the idea of renting it for 650 sort of thing.
0:56:32 > 0:56:35So it seems there's light at the end of the tunnel here.
0:56:35 > 0:56:39While he might have had his doubts four months ago when he saw what he'd bought,
0:56:39 > 0:56:42things are definitely looking up for him now.
0:56:43 > 0:56:47I'm not sorry. It's an investment as far as I'm concerned
0:56:47 > 0:56:54and whether it goes up £10,000, £20,000, whether it stays the same, I'm happy.
0:56:57 > 0:57:00We hope you've enjoyed today's Homes Under The Hammer.
0:57:00 > 0:57:03- We'll see you again soon. - Goodbye.- Bye-bye.
0:57:12 > 0:57:14Subtitles by Red Bee Media Ltd