0:00:02 > 0:00:04Buying property in the traditional way can mean
0:00:04 > 0:00:07being caught up in a chain and long completion periods.
0:00:07 > 0:00:11If you buy at auction, you get really quick results.
0:00:11 > 0:00:13In a matter of weeks, the property is yours.
0:00:13 > 0:00:18Interested? Well, we have three very different properties to whet your appetite today.
0:00:44 > 0:00:49Many of the properties in the auctions need work doing on them before they can be lived in.
0:00:49 > 0:00:54But renovating properties means you can add value and that is always the aim.
0:00:54 > 0:01:00So let's see the three properties that had the magic wand wafted over them today.
0:01:00 > 0:01:05I find myself stooping to new lows in West Looe, Cornwall.
0:01:05 > 0:01:09Look at the ceiling height. That's not going to work, is it?
0:01:09 > 0:01:17This cottage in Canterbury looks straight out of a fairytale. Now, is this cottage charming on the inside?
0:01:17 > 0:01:19Well, no, not really.
0:01:19 > 0:01:24And I put on my detective hat for this three-bedroom semi in Gwent, Wales.
0:01:24 > 0:01:27Now, there's something which is worrying me about this house.
0:01:27 > 0:01:30And it's not that obvious.
0:01:32 > 0:01:33All these properties went to auction.
0:01:33 > 0:01:39We'll find out who bought them and what they paid for them, when they went under the hammer.
0:01:45 > 0:01:47The rugged beauty of the Cornish coast
0:01:47 > 0:01:55is a wonderful sight. Between the many estuaries are some very popular towns, and one of them is West Looe.
0:01:55 > 0:01:59Well, either side of the estuary, Looe is a beautiful place to either live or visit,
0:01:59 > 0:02:01even on a soggy day like today.
0:02:01 > 0:02:06But like everywhere, it has been affected by current uncertainties in the property market.
0:02:06 > 0:02:14Up for grabs was a three-bedroomed cottage, with a guide price of 100,000 to 120,000 quid.
0:02:14 > 0:02:16That's certainly less than it would have been a year ago.
0:02:16 > 0:02:22It's near to the quayside and is one of the older properties in the town.
0:02:22 > 0:02:25It comes with Grade II listing and is in a conservation area.
0:02:25 > 0:02:29Recently, it was a shop and from the outside, it's looking pretty tired.
0:02:29 > 0:02:31What about inside?
0:02:31 > 0:02:33Oh, yuk.
0:02:33 > 0:02:39Let's hope it's drier inside than out, although that doesn't follow in some of the properties I see.
0:02:39 > 0:02:40What have we got?
0:02:40 > 0:02:41Well, downstairs, one main room.
0:02:41 > 0:02:45And straightaway, a very strange ceiling. What is going on here?
0:02:45 > 0:02:48Well, this is obviously the frontage of the old shop.
0:02:48 > 0:02:51That's a decent height there but then the ceiling
0:02:51 > 0:02:55has actually been suspended below a main beam which is going across.
0:02:55 > 0:03:01It's not good, really, cos it really lowers the ceiling height here and makes it feel very claustrophobic.
0:03:01 > 0:03:04Somebody's been thinking what they might like to do with this place.
0:03:04 > 0:03:08There's graffiti on the walls, with things like cupboards and cookers.
0:03:08 > 0:03:12This WOULD be a good place for a kitchen. Let's see what the plans for the rest of the house were.
0:03:13 > 0:03:20Until recently, this property had planning permission for change of use back to a permanent residence.
0:03:20 > 0:03:24However, the key phrase there is "recently", because planning permission has now lapsed.
0:03:24 > 0:03:30So, whoever bought this would have to reapply for it or change it altogether.
0:03:32 > 0:03:37Here on the first floor, the kind of feeling of cramped sort of claustrophobia continues, I'd say,
0:03:37 > 0:03:42but bear in mind, this was probably a fisherman's cottage and it is quaint, you've got to say that.
0:03:42 > 0:03:44One bedroom there. Another bedroom here.
0:03:44 > 0:03:48Lovely old floorboards you could have some fun with, but look at the ceiling height.
0:03:48 > 0:03:50That's not going to work, is it?
0:03:50 > 0:03:55I think you need downlighters in this room. But I like the windows. I like the window seats.
0:03:55 > 0:03:59They would be absolutely beautiful if you stripped those back.
0:03:59 > 0:04:03What isn't so pretty, unless you're into... well, funguses... is this...
0:04:03 > 0:04:07a really nasty case of some kind of rot going on there.
0:04:07 > 0:04:10But just a word of warning. See this here?
0:04:10 > 0:04:14That looks at first glance like dry rot.
0:04:14 > 0:04:16But it isn't. What it is, it's a cobweb that's got dust on it.
0:04:16 > 0:04:19I'll show you dry rot in a minute.
0:04:22 > 0:04:25This is dry rot. Look at the difference.
0:04:25 > 0:04:30It's like long sort of roots of a plant, but the trouble is, those roots
0:04:30 > 0:04:33go through concrete, they go through wood, they destroy a house.
0:04:33 > 0:04:35They call it the cancer of buildings.
0:04:35 > 0:04:37That thing downstairs, not a problem.
0:04:37 > 0:04:40This definitely needs to be sorted out. You get a specialist firm in.
0:04:40 > 0:04:42They'll chop the wall out, treat it with chemicals.
0:04:42 > 0:04:46It's not, you know, the be-all and end-all, but definitely
0:04:46 > 0:04:49it needs to be sorted out by a specialist sooner rather than later.
0:04:51 > 0:04:55There's a lot more to sort out here than just the rot.
0:04:55 > 0:05:02Although someone has made a start on improving this property, in reality, there's still quite a bit to do.
0:05:02 > 0:05:05But as the auctioneer who sold it points out, when renovating,
0:05:05 > 0:05:09you need to be very careful what you change.
0:05:09 > 0:05:11You can bet your bottom dollar
0:05:11 > 0:05:13that the local planning authority, quite rightly, because it's a
0:05:13 > 0:05:16listed building in a conservation area,
0:05:16 > 0:05:18they want to make sure that whatever's done,
0:05:18 > 0:05:23particularly externally, will fit in with the environment around.
0:05:23 > 0:05:27Some while ago, the property was granted planning consent for
0:05:27 > 0:05:33reversion to a whole house, cos obviously, it was partly a shop, as the window gives away.
0:05:33 > 0:05:37That planning consent, having been actioned, albeit...
0:05:37 > 0:05:43by no means finished, means the clock has stopped, and they're fine to carry on with that scheme.
0:05:43 > 0:05:46So, provided you stick to those plans, it's fine to carry on.
0:05:46 > 0:05:48But a word of warning.
0:05:48 > 0:05:54Councils have different definitions of what constitutes work having started.
0:05:54 > 0:05:57So do always check before you start knocking down walls.
0:05:57 > 0:06:03Also, remember that there are other options than making it a family home, particularly in this area.
0:06:03 > 0:06:06Strong holiday demand in this part of Cornwall, this part of the village,
0:06:06 > 0:06:08but of course
0:06:08 > 0:06:12you'll get good weeks but then you won't get hardly anything in the winter
0:06:12 > 0:06:15and every Saturday, you've got to change the sheets.
0:06:15 > 0:06:20So it's a balance between how much hands-on management do you want or do you not really want any?
0:06:20 > 0:06:22Lots to consider, then.
0:06:22 > 0:06:29At that guide price, of £100,000 to £120,000, what would the ceiling value be, once renovated?
0:06:29 > 0:06:33A cautious estimate in the current market
0:06:33 > 0:06:38and as long as they do half a reasonable job, you could be looking at 145...
0:06:38 > 0:06:42145,000, 155,000.
0:06:42 > 0:06:46Well, it's a quaint little place, isn't it, with some lovely features
0:06:46 > 0:06:50like these window seats and you certainly can't knock the location,
0:06:50 > 0:06:54but don't underestimate the amount of effort it's going to take to sort this place out.
0:06:54 > 0:06:57Who was ready to take it on when it went to the auction?
0:06:59 > 0:07:01Who's going to say 90?
0:07:01 > 0:07:0490 somewhere. 90.
0:07:04 > 0:07:07For Lot 95. 90.
0:07:07 > 0:07:0980? Good heavens. 80.
0:07:09 > 0:07:1175, or... We're away.
0:07:11 > 0:07:1475 we've got. 75. 78. 80.
0:07:14 > 0:07:17At 80. In the aisle, 80.
0:07:17 > 0:07:2180 I've got. 80. At 80 for Lot 95. At 80.
0:07:21 > 0:07:24At 80 we've got. Orange shirt, we'll do it.
0:07:24 > 0:07:28At 80,000 for Lot 95. At 80,000 once.
0:07:28 > 0:07:30At 80,000 twice.
0:07:30 > 0:07:35At 80,000 - here we go, being sold at 80,000.
0:07:35 > 0:07:38Yours. That was nice and easy.
0:07:38 > 0:07:42With just two bids, the new owner is quantity surveyor Alan.
0:07:42 > 0:07:48He's snapped this up for much less than the £100,000-£120,000 guide price.
0:07:48 > 0:07:51That would put a smile on anybody's face.
0:07:51 > 0:07:53But when I met him back at the property,
0:07:53 > 0:07:58it turns out it was an even sweeter deal than I first thought.
0:07:58 > 0:07:59I tried to buy it last year for 120.
0:07:59 > 0:08:02- It went on at 185, originally. - No way.
0:08:02 > 0:08:08Dropped to 165 and I offered 120, but they refused it as a repossession.
0:08:08 > 0:08:12So obviously, the market's dipped down, credit crunch.
0:08:12 > 0:08:13Yeah, so cheap property at 80,000.
0:08:13 > 0:08:19Perhaps the rot scared people away, but if anyone is qualified to sort it out,
0:08:19 > 0:08:24it's Alan, who's been in construction for 23 years.
0:08:24 > 0:08:29He's currently finishing a block of eight apartments which he and his wife, Dee, plan to let out.
0:08:29 > 0:08:31So, are you from here, originally?
0:08:31 > 0:08:36No. I'm from West London, originally. So, moved down in 2000.
0:08:36 > 0:08:38Did the classic, at the time.
0:08:38 > 0:08:40- Jumped out the rat race...- Really.
0:08:40 > 0:08:43to come down and have an easier lifestyle, maybe not work quite so hard.
0:08:43 > 0:08:48Hasn't quite worked out like that... and so we bought a block of holiday flats
0:08:48 > 0:08:52just literally about half a mile from here and so we've been running that for a few years.
0:08:52 > 0:08:56And in the meantime, I've developed a few houses that I've done for myself.
0:08:56 > 0:09:01So I've not really been out of construction. I've been building since I've been down here.
0:09:01 > 0:09:04But no, so actually now when the market's dipped down,
0:09:04 > 0:09:06I've seen the opportunity to potentially start developing again.
0:09:06 > 0:09:11Snapping up this property for just £80,000 was a good start.
0:09:11 > 0:09:16But he's going to have to put all those years of experience into sorting it out.
0:09:16 > 0:09:20The damp and the rot and everything is quite spectacular, isn't it?
0:09:20 > 0:09:25Yeah. It's got worse, actually, since I last saw the property.
0:09:25 > 0:09:29We'll get a timber treatment specialist in and because the house is in such a state,
0:09:29 > 0:09:34if this was a reasonably good condition house, it would be quite an extensive amount of work.
0:09:34 > 0:09:38But everything needs replacing, anyway, so it's just how far we have to go with it.
0:09:38 > 0:09:40What do you think the biggest challenge is?
0:09:40 > 0:09:44Cos it's listed, the roof has got to be replaced in Delabole slate, again.
0:09:44 > 0:09:50I'm expecting half the timbers on that front roof to need replacing.
0:09:50 > 0:09:53And then actually re-roofing that and actually, also, the front elevation,
0:09:53 > 0:09:58cos it's listed, we've got to have single-glazed wood windows made, so...
0:09:58 > 0:10:03they're a bit more expensive than if I was doing, you know, a domestic house built in the 1980s.
0:10:03 > 0:10:06So it's going to be a bit more expensive on that basis.
0:10:06 > 0:10:12Alan estimates it'll cost around £30,000 to do the work on this cottage as he'll have to source
0:10:12 > 0:10:16original materials in keeping with its Grade II status.
0:10:16 > 0:10:21But when it comes to the finished product, he has some ideas of his own.
0:10:21 > 0:10:23So let's talk about the planning.
0:10:23 > 0:10:26What do you know about history of it and where, actually, is it at?
0:10:26 > 0:10:31Well, obviously, it was originally a house but. I think, back in the '20s or '30s it became a shop.
0:10:31 > 0:10:35And then it did have planning permission which I think has lapsed two or three years ago.
0:10:35 > 0:10:38They actually have started a little bit of work here,
0:10:38 > 0:10:43but as I understand it, because they hadn't got building regulation approval, it isn't considered
0:10:43 > 0:10:47a substantial start and so the planning permission actually has lapsed now.
0:10:47 > 0:10:49Hence I've got to go through the whole process.
0:10:49 > 0:10:52You're starting from scratch, to all intents and purposes.
0:10:52 > 0:10:56Yeah. In some respects, it's to my advantage cos the scheme that was drawn originally...
0:10:56 > 0:10:58I've come up with a slightly better scheme.
0:10:58 > 0:11:03Alan intends to restore this old cottage to a three-bedroom family home.
0:11:03 > 0:11:08But he's taking a gamble, as his plans are not yet approved.
0:11:08 > 0:11:11I've met the conservation officer and the building control officer.
0:11:11 > 0:11:14And because it's listed, fortunately, for the alterations I want to do,
0:11:14 > 0:11:18I haven't got to comply with full building regs.
0:11:18 > 0:11:20The conservation side of the property takes precedence.
0:11:20 > 0:11:25But what they've asked for is actually sort of fully wired, smoke alarms and actually, on some of
0:11:25 > 0:11:31the original timbers in the hallways to be painted with intumescent paint, just to stop the spread of fire.
0:11:31 > 0:11:35So, in some respects, being listed has actually helped me to do what I want to do.
0:11:35 > 0:11:41To help him, Alan has employed the architect who used to have his office in this cottage
0:11:41 > 0:11:43so at least he'll know the layout.
0:11:43 > 0:11:49It could take up to four months before they start work, as Alan still has those flats to finish.
0:11:49 > 0:11:55But there's no rush, which is exactly the pace he moved to West Looe for, in the first place.
0:11:55 > 0:11:58- Are you happy you made the move? - Oh, fantastic. Yeah.
0:11:58 > 0:12:01Part of the reason was we had our first child, nine years ago.
0:12:01 > 0:12:07So we lived in Iver, just on the edge of Buckinghamshire, you know, just the outside of London.
0:12:07 > 0:12:11And it was a lovely place to live, but it's really nice here, my daughter...
0:12:11 > 0:12:15the children she went to playgroup with, she's gone to primary school,
0:12:15 > 0:12:22she'll go to senior school with them, and it really is a nice cohesive sort of atmosphere down here.
0:12:22 > 0:12:26Everybody knows your business, in a nice way. It's a nice place to live, Looe.
0:12:26 > 0:12:29Yeah. And in fact, it's just the commuting, as well.
0:12:29 > 0:12:32I used to be in the construction industry in London
0:12:32 > 0:12:35and it's two or three hours between sites, you know, in traffic.
0:12:35 > 0:12:39So now I'm working within a two or three mile radius
0:12:39 > 0:12:43of where I live, and on this one we walk into work, so it's much nicer.
0:12:46 > 0:12:52Well, clearly, Alan knows that he's got himself a great bargain here but it certainly is a sign of the times
0:12:52 > 0:12:56in terms of how much it's dropped in price from what it was before.
0:12:56 > 0:13:01Anyway, he's using the fact that it's in a conservation area, and a listed building, to his advantage.
0:13:01 > 0:13:06And hopefully, he'll be able to get that all-important planning permission... but you never know.
0:13:06 > 0:13:09Find out how he gets on later in the show.
0:13:12 > 0:13:18Today, I'm just three miles from Canterbury city centre in a desirable area called Tyler Hill.
0:13:18 > 0:13:23Good schools attract families to this place and its prime position is also a draw.
0:13:23 > 0:13:28The North Downs are just three miles south and you're only five minutes from the coast.
0:13:28 > 0:13:30Walking one day, sailing the next.
0:13:30 > 0:13:32Positively spoilt for choice.
0:13:35 > 0:13:40It's those options that make buying property in this area of Kent so attractive.
0:13:40 > 0:13:45Charming, detached and period property, just some of the buzz words
0:13:45 > 0:13:48used in the auction catalogue to describe today's lot.
0:13:48 > 0:13:51It's also a cottage. And the guide...
0:13:51 > 0:13:55just £120,000-£130,000.
0:13:55 > 0:14:01Judging by that glorious facade, the guide price sounds low but will the inside match up?
0:14:03 > 0:14:07So is this cottage charming on the inside?
0:14:07 > 0:14:09Well, no, not really.
0:14:09 > 0:14:14Lots of woodchip wallpaper everywhere and no lovely features, to speak of...
0:14:14 > 0:14:19although through here into the second reception room, we've got a little brick fireplace which is quite nice.
0:14:19 > 0:14:25And you have got new double-glazed windows which we'll need because that is a noisy road out there.
0:14:25 > 0:14:30But the ceilings are relatively low and the kitchen is disappointing.
0:14:30 > 0:14:34I mean, look at the units and sadly, these units completely
0:14:34 > 0:14:37obscure this window, so you're missing a lot of light there.
0:14:37 > 0:14:42And something that has got the alarm bells ringing is that crack up there.
0:14:42 > 0:14:44That needs further investigation.
0:14:44 > 0:14:48Let's just hope upstairs is a little more promising.
0:14:48 > 0:14:50# You look like an angel... #
0:14:50 > 0:14:56All three bedrooms are a good size, but they come with even more cracks and these are serious.
0:14:56 > 0:15:01It would seem this charming little cottage is starting to show its devilish side.
0:15:01 > 0:15:03# You're the devil in disguise
0:15:03 > 0:15:09# Oh, yes, you are # The devil in disguise. #
0:15:09 > 0:15:13Most subsidence is the result of shrinkage of clay soil.
0:15:13 > 0:15:19During hot weather, large cracks tend to appear in walls, particularly around doors like this...
0:15:19 > 0:15:20and...
0:15:20 > 0:15:24windows, as the soil dries out.
0:15:24 > 0:15:30Now, if the building has shallow foundations and doesn't recover, it'll probably need underpinning.
0:15:30 > 0:15:34Great. Spend some money on putting it right and it'll become much easier to sell.
0:15:34 > 0:15:36Well, no, not necessarily.
0:15:36 > 0:15:42Even though thousands of pounds may have been spent on remedial work, difficulty in finding insurance cover
0:15:42 > 0:15:46can just blight the sale of a perfectly sound property.
0:15:46 > 0:15:47# Devil in disguise... #
0:15:49 > 0:15:57Suddenly, that guide price of 120,000-130,000 doesn't sound too cheap, after all.
0:15:57 > 0:15:59What does a local estate agent make of it?
0:16:01 > 0:16:05Perhaps the over-riding issue with this particular house is subsidence.
0:16:05 > 0:16:10The property has suffered structural movement over time and that's very evidence in the property.
0:16:10 > 0:16:14In terms of the impact that subsidence has on the property,
0:16:14 > 0:16:16one first has to look at whether or not there is insurance in place
0:16:16 > 0:16:23which will enable the works to be done to underpin the property and make it structurally sound.
0:16:23 > 0:16:27The problem is that in a difficult market, blight really bites.
0:16:27 > 0:16:32And where you have a history of subsidence, that can make selling a property quite difficult.
0:16:32 > 0:16:35Not the best appraisal I've heard.
0:16:35 > 0:16:39And I fear it's those issues that will put many buyers off.
0:16:39 > 0:16:46But this can be rectified and if someone does put this cottage right, what could it sell for?
0:16:46 > 0:16:49I think if you're looking to sell this property onto the open market, once all
0:16:49 > 0:16:56fully refurbished, underpinning work and everything else, I suspect that you ought to get £250,000 for it.
0:16:56 > 0:17:00I think with a history of subsidence and the market we're in at the moment,
0:17:00 > 0:17:02I think you'd look to accept £225,000.
0:17:02 > 0:17:09This house requires underpinning and that has negative consequences for its future saleability.
0:17:09 > 0:17:15Suddenly, this charming detached cottage isn't so charming any more.
0:17:15 > 0:17:18Someone found it attractive enough to buy it, though.
0:17:18 > 0:17:20Let's find out who that was at the auction.
0:17:22 > 0:17:26Great opportunity to buy this and refurbish it and repair it, whatever you're going to do.
0:17:26 > 0:17:29You need to buy it first, so where are you going to start me?
0:17:29 > 0:17:33We've guided it at 120-130. Start me at 120.
0:17:33 > 0:17:37Start me at 110, then. Not going less than this. 110. 110. I'm on the way at the back.
0:17:37 > 0:17:40£110,000 is with you. 115, I've got.
0:17:40 > 0:17:42Now 120. 120.
0:17:42 > 0:17:45And five. 125. At £120,000 I've got.
0:17:45 > 0:17:50125 I'm looking for. Are we all done at £120,000? Hands everywhere.
0:17:50 > 0:17:54I've got that gentleman there at 125... sorry, 130.
0:17:54 > 0:17:57I'll take you at 132. 132.
0:17:57 > 0:17:59If you want, 132. And five. 135.
0:17:59 > 0:18:02And 40. And 40. And five.
0:18:02 > 0:18:04And 50. And five. 150.
0:18:04 > 0:18:07£150,000, I've got.
0:18:07 > 0:18:11155 I'm looking for. At £150,000 I'm bid.
0:18:11 > 0:18:18It's obviously going to be sold. 155. 155, back by the stand. 160.
0:18:18 > 0:18:20160. And five. Still in the room.
0:18:20 > 0:18:24It's obviously good value. Just who's going to buy it, at £160,000.
0:18:24 > 0:18:27I'll take two if it helps you. 162.
0:18:27 > 0:18:28Hands out the pocket.
0:18:28 > 0:18:32I thought so. 162. 164. And six.
0:18:32 > 0:18:35At £164,000. Back to you, sir.
0:18:35 > 0:18:37Down the front for the first time.
0:18:37 > 0:18:42It's going to be sold. £164,000 for the second time.
0:18:42 > 0:18:47Are you having another go? Third and final time at £164,000.
0:18:47 > 0:18:55If you're sure you're all done. It's yours, sir, for £164,000.
0:18:55 > 0:19:00Following a bit of a battle, the new owners are Paul and Juliette.
0:19:00 > 0:19:06Once they'd got the keys to the cottage, I met them there to find out what they had planned for it.
0:19:06 > 0:19:10- Paul and Juliette, congratulations. - Thank you.- Well done. - Thank you.- You got the property.
0:19:10 > 0:19:16- Yep.- I must say, you're in one of my favourite parts of the world... Canterbury.- Yeah. We like Canterbury.
0:19:16 > 0:19:19So what was it about this house that made you want to go to auction and buy it?
0:19:19 > 0:19:24I went past it and it sits back from the road and it's a nice cottage. It's detached.
0:19:24 > 0:19:27I like the trees, you know, surrounding it.
0:19:27 > 0:19:30And I've been looking for something for a long time...
0:19:30 > 0:19:33in Whitstable, where I live, really.
0:19:33 > 0:19:35More a holiday let, we was looking for, wasn't we?
0:19:35 > 0:19:41- We was really. Yeah.- So I saw this, and I like a project, as well. And I thought I'd like to live here.
0:19:41 > 0:19:44So it ticked a lot of boxes for you.
0:19:44 > 0:19:46But you weren't at the auction, were you, Juliette?
0:19:46 > 0:19:50No. I wasn't. We didn't think we'd get it because we have been looking for such a long time.
0:19:50 > 0:19:54And Paul went along with the cheque and I said, oh, well, it'll probably go for a lot more money.
0:19:54 > 0:19:58Because there were so many people looking round when we came round, we thought we don't stand a chance.
0:19:58 > 0:20:01So he went along and I couldn't believe it when he said he had got it.
0:20:01 > 0:20:05Tell me about the day you did your initial viewing on this property.
0:20:05 > 0:20:07- It was on a Friday, wasn't it? - Yes. It was. Yeah.
0:20:07 > 0:20:12- Juliette doesn't work on a Friday, so we come up and use it as an excuse for some lunch out.- Yeah.
0:20:12 > 0:20:15And they said come at one o'clock.
0:20:15 > 0:20:19So we come at one o'clock and as soon as we got here, they said, you've only got five minutes.
0:20:19 > 0:20:22- They had another viewing to do, or something.- They've all got to go.
0:20:22 > 0:20:24So we rushed in and looked round.
0:20:24 > 0:20:28- We liked the garden and the look of the place but there were loads of people, weren't there?- Yeah.
0:20:28 > 0:20:31And what did you think when you saw it for the first time?
0:20:31 > 0:20:34Well, because I've always lived by the sea, I've always imagined, when
0:20:34 > 0:20:36we retire, I would live in the country. And this is quite nice.
0:20:36 > 0:20:40It's not too far out but you've got the country feel. So I liked it.
0:20:40 > 0:20:43I thought, oh, yes, I could just imagine a white picket fence
0:20:43 > 0:20:46and roses over the porch, when you draw a picture when you're a child.
0:20:46 > 0:20:50- It's certainly got that cottagey feel to it, hasn't it?- Yeah.
0:20:50 > 0:20:53Paul's been in construction since he left school, but with just five minutes
0:20:53 > 0:20:56to view the cottage, he missed its underlying problems.
0:20:56 > 0:21:00He only found out when they checked the legal pack on the internet.
0:21:00 > 0:21:04# Heaven help me
0:21:04 > 0:21:07# I didn't see # The devil in your eyes... #
0:21:07 > 0:21:12When we downloaded it, we found that there was some subsidence,
0:21:12 > 0:21:16but because I'm in the construction, you know, it didn't bother me too much.
0:21:16 > 0:21:18On hindsight, I should have done more homework.
0:21:18 > 0:21:23- We're a bit impulsive though, aren't we?- Impulse buys can go very wrong.
0:21:23 > 0:21:27While Paul and Juliette did eventually look at the legal pack,
0:21:27 > 0:21:33it's an important reminder that when buying at auction, checking it is a must.
0:21:33 > 0:21:37But luckily for them, they had a bit of inside knowledge.
0:21:37 > 0:21:40I've got a friend who's a structural engineer.
0:21:40 > 0:21:45So, you know, I've got someone I can consult with, and ask their opinion.
0:21:45 > 0:21:48They sort of put my mind at ease.
0:21:48 > 0:21:51And strangely enough, our friend was actually
0:21:51 > 0:21:55- the one that did the survey on this, 15 years ago, ten years ago...- Yeah.
0:21:55 > 0:21:58Which was quite unusual, really.
0:21:58 > 0:22:01So, yeah, I knew someone who knew something about the property.
0:22:01 > 0:22:03So I suppose from that point of view I'd done some homework.
0:22:03 > 0:22:07So that's good. You did a little bit of homework there, so I'm not going to tell you off.
0:22:07 > 0:22:12So, although this was bought on a whim, at least Paul has done some research.
0:22:12 > 0:22:19But even with his experience in the building trade, I'm worried about the cost of fixing this place.
0:22:19 > 0:22:21I allow a contingency of about 20,000.
0:22:21 > 0:22:26OK. £20,000. Also, you've got to think about the renovation costs because it does need a bit of work.
0:22:26 > 0:22:28Yeah. 20,000 for the underpinning.
0:22:28 > 0:22:31I would allow for
0:22:31 > 0:22:33the drive and the cross over, about 5,000.
0:22:33 > 0:22:37The bathroom and the kitchen and decorating...
0:22:37 > 0:22:39probably about another sort of 12,000.
0:22:39 > 0:22:41So, 37,000.
0:22:41 > 0:22:43- 37. Yeah.- Yeah.
0:22:43 > 0:22:47So, guys, that brings the total of this house up to £201,000.
0:22:47 > 0:22:51- Do you think, in the current climate, this house is worth that?- Oh, yeah.
0:22:51 > 0:22:54Definitely. It's a lovely location.
0:22:54 > 0:22:56Detached. No neighbours.
0:22:56 > 0:22:57No. It's very desirable, I think.
0:22:57 > 0:23:01- Yeah. I think so. Yeah.- But to start with, we're only really going to...
0:23:01 > 0:23:02it's a long-term plan...
0:23:02 > 0:23:07so to start with, sort out the essential things that need doing, and then perhaps we'll
0:23:07 > 0:23:10consider renting it until we're ready to actually do it exactly how
0:23:10 > 0:23:13we want to renovate the cottage, ourselves, for us to move into.
0:23:13 > 0:23:16So the plan is to renovate this cottage and get tenants in.
0:23:16 > 0:23:21As Kent University is nearby, they should have a constant supply of students.
0:23:21 > 0:23:26But how long before they can advertise it for rental?
0:23:26 > 0:23:30I've really got to get on and get the work done because I've got to get an income in...
0:23:30 > 0:23:35to pay for the mortgage. So really, I'm hoping to get it all the works done within a month.
0:23:35 > 0:23:40- A month. - Yeah.- Wow. Now that's a tall order.
0:23:40 > 0:23:45Well... you know, because I'm in construction, I've got the people there...
0:23:45 > 0:23:48and the expertise... and the backup.
0:23:48 > 0:23:50That's what it all comes down to.
0:23:50 > 0:23:54Paul's set himself a tight deadline, but the sooner he can get tenants,
0:23:54 > 0:23:56the sooner he can pay off his mortgage.
0:23:56 > 0:24:00Then they can look forward to having it all to themselves... in about three years' time.
0:24:02 > 0:24:07I can picture a little cottage with nice little windows, roses over the door, white picket fence.
0:24:07 > 0:24:10Lovely walking into Canterbury, going shopping, you know...
0:24:10 > 0:24:13into Whitstable to see my family. That would suit me.
0:24:13 > 0:24:20Juliette and Paul made quite an impulsive purchase here, but you can see it is a purchase of passion.
0:24:20 > 0:24:26For Juliette, well, she's dreaming about roses above the door, the lovely white picket fence.
0:24:26 > 0:24:27On the other hand, Paul is thinking about
0:24:27 > 0:24:32getting this done in a month and getting a return on his investment.
0:24:32 > 0:24:37But will he do all that work in just 28 days? You can find out later.
0:24:37 > 0:24:43Coming up, there's a shock in store for the new owners of this house in Gwent. Look what I've found.
0:24:43 > 0:24:49There's a hole here to put my hand through and I can see the house is made of concrete.
0:24:49 > 0:24:53We return to Canterbury, where things haven't been easy.
0:24:53 > 0:24:57I'd be fibbing if I said it wasn't a struggle.
0:24:57 > 0:24:58It has been a struggle.
0:24:58 > 0:25:03But first, it's back to Cornwall, where quantity surveyor Alan has been very busy.
0:25:03 > 0:25:07We've absolutely tried to squeeze as much out of this space as we can.
0:25:12 > 0:25:16Remember this cottage in West Looe, Cornwall, with listed status,
0:25:16 > 0:25:21lapsed planning permission and a dry rot infestation?
0:25:21 > 0:25:25Those were just some of the things that might have put potential investors off.
0:25:25 > 0:25:31Maybe that's why Alan was able to pick it up for just £80,000 at auction, with his first bid.
0:25:31 > 0:25:37However, he had already offered £120,000 a few months earlier.
0:25:37 > 0:25:39It went on at 185, originally.
0:25:39 > 0:25:41- No way.- Dropped to 165.
0:25:41 > 0:25:45And I offered 120, but they refused it as a repossession.
0:25:45 > 0:25:50Now, that might sound like a result but it's also an indication of how far
0:25:50 > 0:25:52the property market around Looe has fallen.
0:25:52 > 0:25:59And with no idea of how the planning office would view his ideas, not even a quantity surveyor like Alan
0:25:59 > 0:26:04could estimate how long it would take or how much it might cost to renovate.
0:26:06 > 0:26:12Well, it's been a year since I visited, and clearly, a lot has changed in that time.
0:26:12 > 0:26:15The old shop frontage has completely gone.
0:26:15 > 0:26:21In its place are new windows, doors, fresh render and a coat of paint.
0:26:21 > 0:26:23Oh, and that's just the start.
0:26:23 > 0:26:25There isn't really anything that we haven't done.
0:26:25 > 0:26:29All we've kept is actually the original front wall and back wall
0:26:29 > 0:26:34and the substructure, if that's the right term, of the roof itself, actually just the carcassing.
0:26:34 > 0:26:36So everything's been totally renewed.
0:26:36 > 0:26:41Alan kept as much of the original slate from the roof as he possibly could,
0:26:41 > 0:26:45in order to comply with the rules regarding its listed status.
0:26:45 > 0:26:50He's also done a fine job of renewing the cobbles at the front.
0:26:50 > 0:26:54But what about inside? There have been big changes here, too.
0:26:54 > 0:26:58After six months of negotiation between his architect
0:26:58 > 0:27:03and the local conservation officer, Alan managed to get permission to adjust the plans.
0:27:03 > 0:27:06The original planning permission had a slightly different layout.
0:27:06 > 0:27:09We re-jigged it to try and optimise the space.
0:27:09 > 0:27:14Because it is a small cottage, we've absolutely tried to squeeze as much out of this space as we can.
0:27:14 > 0:27:18A good example of that is the kitchen.
0:27:18 > 0:27:19The kitchen we're really pleased with.
0:27:19 > 0:27:24We actually managed to pinch some space in here by actually moving this staircase slightly forward, which
0:27:24 > 0:27:28has created a space where we've actually been able to push the kitchen in this direction.
0:27:28 > 0:27:32We've also used a deeper worktop so actually, you don't end up bumping your head on here.
0:27:32 > 0:27:34And I think it's worked really well.
0:27:34 > 0:27:36We're also really pleased with...
0:27:36 > 0:27:39we've gone for a stone, natural product on the actual splashback.
0:27:39 > 0:27:43And I think that complements the natural slate floor, as well, really well.
0:27:43 > 0:27:50Alan's done a great job here and it's not limited to the ground floor.
0:27:50 > 0:27:55He's used every possible nook and cranny to add extra storage space.
0:27:55 > 0:27:59Cos it is a cottage, it's difficult to get big furniture upstairs,
0:27:59 > 0:28:02so we've got built-in wardrobes in the bedrooms.
0:28:02 > 0:28:06We've got storage on the landing, to make it as practical as possible to live in.
0:28:06 > 0:28:11He moved the bathroom into one of the bedrooms on the first floor.
0:28:11 > 0:28:14My daughter, she comes round to see what I'm up to sometimes,
0:28:14 > 0:28:17so she takes credit for the bathroom being in the position it's in.
0:28:17 > 0:28:20So she was quite pleased with that decision.
0:28:20 > 0:28:26That means there's now a bedroom on the top floor, where the bathroom used to be.
0:28:26 > 0:28:31You've got this little landing area here, as well, which actually is ideal for a little computer station.
0:28:31 > 0:28:35And we're really pleased with this room. It used to have a window that was much higher.
0:28:35 > 0:28:39You couldn't see out and it didn't make the room such a nice place to be.
0:28:39 > 0:28:42The conservation officer was really good and let us make that window much bigger.
0:28:42 > 0:28:47And it's made this room much nicer. So we're really pleased how this one's turned out.
0:28:47 > 0:28:52One thing that Alan wasn't able to do was fit double glazing, because of those planning constraints.
0:28:52 > 0:28:58But he does intend to install a special system to combat condensation.
0:28:58 > 0:29:02All in all, this is a fantastic renovation but none of it's been plain sailing.
0:29:02 > 0:29:05We did have some real problems, mostly because of the rot and damp,
0:29:05 > 0:29:10which has just eaten away and actually destroyed most of the timbers in the floors.
0:29:10 > 0:29:14We had to have a steelwork scheme put together to strengthen the building,
0:29:14 > 0:29:16and replace all the floors internally.
0:29:16 > 0:29:19So it's one of those things that I was hoping I wouldn't have to do.
0:29:19 > 0:29:21It's cost me quite a bit more money to actually do this work,
0:29:21 > 0:29:24but I think we've got a better product at the end.
0:29:24 > 0:29:28With a lack of parking or storage space outside,
0:29:28 > 0:29:33moving materials on and off site has also added to the cost of the job.
0:29:33 > 0:29:41Alan estimates he's spent around £135,000 on the place, including his purchase price and fees.
0:29:43 > 0:29:47He'd like to sell it for £200,000, but with the slump in the market,
0:29:47 > 0:29:54he's keeping his options open and may choose to rent it long-term or as a holiday let.
0:29:54 > 0:29:56What will two local property experts think?
0:29:56 > 0:29:59My first thoughts are -
0:29:59 > 0:30:03obviously, he's done a great job inside...
0:30:03 > 0:30:06but primarily, how he's managed to get
0:30:06 > 0:30:09the shop front gone and a cottage front in...
0:30:09 > 0:30:11amazing, he's done a really good job there.
0:30:11 > 0:30:16Externally, it looks bright and clean and tidy, and you come in, and he's
0:30:16 > 0:30:21obviously spent a lot of time and thought over how he's converted it.
0:30:21 > 0:30:22The fellow could resell it quite happily and I'm
0:30:22 > 0:30:26sure he'd make some money out of it, but it is a very good letting spot.
0:30:26 > 0:30:28Looe is hugely popular.
0:30:28 > 0:30:31This property's an ideal holiday let.
0:30:31 > 0:30:35You've got three bedrooms so therefore you're going to accommodate four people,
0:30:35 > 0:30:41but the living space isn't really big enough for a permanent living home.
0:30:41 > 0:30:45It sounds as though the experts are leaning towards letting the property out.
0:30:45 > 0:30:47But what sort of return could Alan get?
0:30:47 > 0:30:52If you were in a holiday let, then in the height of the summer, you'd be looking at around £600 per week.
0:30:52 > 0:30:58On an ordinary residential letting, you're probably looking at about that sort of money per month.
0:30:58 > 0:31:07£600 per calendar month would provide a yield of around 5.5% on Alan's £135,000 investment.
0:31:07 > 0:31:11I'm hoping to rent it out for about £625, so that's not a million miles apart.
0:31:11 > 0:31:15And on the holiday market, I mean, we run holiday accommodation...
0:31:15 > 0:31:17I'd say that's quite realistic.
0:31:17 > 0:31:19I was hoping a little bit more but around that sort of figure.
0:31:19 > 0:31:22How much could Alan make if he decided to sell?
0:31:22 > 0:31:31Remember, he spent around £135,000 on it, and would really like to get around 200,000.
0:31:31 > 0:31:36If I had to put the property on the market today, I'd pitch it at around £180,000.
0:31:36 > 0:31:39I would recommend an asking price of 185,000.
0:31:39 > 0:31:43That's around a £45,000-£50,000 pre-tax profit.
0:31:43 > 0:31:48But after a year's work, it sounds as though Alan's mind is made up.
0:31:48 > 0:31:52I think I would rent it in the short term, just to wait till the figures get a little bit higher.
0:31:52 > 0:31:54But, you know, quite pleased with that.
0:31:54 > 0:31:58In fact, Alan did decide to rent out the property.
0:31:58 > 0:32:03Just a few days after our filming, he found tenants who are paying him £650 per calendar month.
0:32:13 > 0:32:18So, this is Blackwood and I'm here to see an ex-local authority house.
0:32:18 > 0:32:20Three bedrooms, semi-detached,
0:32:20 > 0:32:27at a guide price of 35,000-41,000 quid, which for around here, seems like pretty good value for money.
0:32:27 > 0:32:31So, let's find out what's wrong with it. Well, for a start, the entrance is quite unusual.
0:32:31 > 0:32:33You have this sort of zig-zaggy slope.
0:32:33 > 0:32:36Now, you may consider this to be a real bonus...
0:32:36 > 0:32:39somebody with walking difficulties, perhaps, or in a wheelchair.
0:32:39 > 0:32:42On the other hand, you could consider it a bit of an eyesore.
0:32:44 > 0:32:48Removal of the wheelchair access could cost quite a bit
0:32:48 > 0:32:51and the slope itself would be rather steep, too.
0:32:51 > 0:32:59However, the house seems to be in reasonable condition with new uPVC glazing always a bonus.
0:32:59 > 0:33:02Okey-dokey. Right into the entrance. Now, this is an ex-local authority house,
0:33:02 > 0:33:06so we're expecting it to be really solidly built. Quite right, too.
0:33:06 > 0:33:08Lots of storage space. That's my experience of these kind of places.
0:33:08 > 0:33:11Got your stairs up to the bedrooms, there. You've got a front sitting room here.
0:33:11 > 0:33:17Then through to the rear of the property where you've got rear lounge, sitting room area.
0:33:17 > 0:33:20I would actually use this as a dining room.
0:33:20 > 0:33:22Nice view out onto the garden. Maybe put some French doors in there.
0:33:22 > 0:33:28And then through to the kitchen. Perfectly serviceable.
0:33:28 > 0:33:31These units are obviously not brand spanking new but if you're renting this place out, they would do.
0:33:31 > 0:33:37You've got your utility room there. You've got a loo. Everything you need.
0:33:37 > 0:33:42Obviously, there is a bit of work needed, mainly restoration and redecoration.
0:33:42 > 0:33:46I'd say the central heating needs to be replaced but there's nothing here
0:33:46 > 0:33:49that's going to surprise the new owner.
0:33:49 > 0:33:53Well, the good news is, the bathroom and loo are upstairs,
0:33:53 > 0:33:57although there is only a shower, a disabled access shower, so no bath.
0:33:57 > 0:33:59You might want to put one of those in.
0:33:59 > 0:34:03Three bedrooms, small box room there. Double bedroom here. And a double bedroom at the back.
0:34:03 > 0:34:06Looks like the paper's coming off the ceiling.
0:34:06 > 0:34:09I'd want to just check that out a little bit more but apart from that,
0:34:09 > 0:34:13you know, it's a solid, good-sized little house.
0:34:14 > 0:34:19Outside, there's a decent-sized garden that just needs some TLC.
0:34:19 > 0:34:22But all the signs point to an ideal family home.
0:34:22 > 0:34:26So, why the low guide price of just 35-41 grand?
0:34:26 > 0:34:28That needs further investigation.
0:34:29 > 0:34:35Now there's something which is worrying me about this house, and it's not that obvious.
0:34:35 > 0:34:39But whenever I see pebbledash like this, I get an alarm going off in my head
0:34:39 > 0:34:42which says "I wonder what this house is constructed of?"
0:34:42 > 0:34:45cos you want to try and avoid houses of non-standard construction.
0:34:45 > 0:34:47You've probably heard me talking about that before.
0:34:47 > 0:34:51If I do a bit of investigation here, look what I've found.
0:34:51 > 0:34:58There's a hole here to put my hand through and I can see that actually, the house is made of concrete.
0:34:58 > 0:35:00So, it is non-standard construction.
0:35:00 > 0:35:04Now that may instil fear into you, and quite rightly so.
0:35:04 > 0:35:09However, the good news is that there are different kinds of non-standard construction.
0:35:09 > 0:35:13And this happens to be something called Wimpey no-fines.
0:35:13 > 0:35:16Thankfully, generally, these kinds of properties,
0:35:16 > 0:35:18with that construction, don't have any problems.
0:35:18 > 0:35:23So, it's mortgageable, and nothing to worry about.
0:35:23 > 0:35:26A no-fines Wimpey home essentially means
0:35:26 > 0:35:31that there's no fine aggregate in the mixture used to build the house.
0:35:31 > 0:35:34So, it really is a solid one.
0:35:34 > 0:35:36But what does a local estate agent make of it?
0:35:37 > 0:35:40This could be quite a nice property.
0:35:40 > 0:35:43Obviously, there are things that need to be done.
0:35:43 > 0:35:46The kitchen needs a little bit more refinement.
0:35:46 > 0:35:49The units are quite nice standard.
0:35:49 > 0:35:51And I would probably do something with the outside
0:35:51 > 0:35:55because it has no kerb appeal, whatsoever, at the moment.
0:35:55 > 0:35:59And basically, if you don't like a house from the outside, then you're not even going to view it.
0:35:59 > 0:36:02Rental income for this sort of area's quite high because it's
0:36:02 > 0:36:05quite near the high street and all the local amenities here.
0:36:05 > 0:36:09So, per calendar month, I would say about £500 per month.
0:36:09 > 0:36:14If someone snapped this up near the guide price of just 35,000-41,000,
0:36:14 > 0:36:17what could it sell for once renovated?
0:36:19 > 0:36:27Once refurbished to a nice standard, it would probably range anything from £85,000-£80,000.
0:36:29 > 0:36:36So, what appears to be a fairly normal house on the outside is, in fact, non-standard construction,
0:36:36 > 0:36:39but thankfully, it's of the type that shouldn't give too many problems
0:36:39 > 0:36:41when it comes to raising a mortgage.
0:36:41 > 0:36:44However, it could still catch out the unwary.
0:36:44 > 0:36:48Let's find out who bought it at the auction and if they were prepared.
0:36:50 > 0:36:53What shall we say on it? Can I see someone near 60? Start me.
0:36:53 > 0:36:56Lot number 260 then.
0:36:56 > 0:36:59Start me. I'm in your hands. Who's got 55 then to get on?
0:36:59 > 0:37:0055.
0:37:00 > 0:37:0250. 50. Thank you, sir, at 50,000.
0:37:02 > 0:37:06That's no money for it. At 52,000, can I? At 50...
0:37:06 > 0:37:09all right. One I'll take. 51 is bid.
0:37:09 > 0:37:11Two is bid. Thank you. At 52,000.
0:37:11 > 0:37:14At 52. Three. Thank you. At 53.
0:37:14 > 0:37:15You're out right in front of me.
0:37:15 > 0:37:18It is your bid, sir. 53. 54.
0:37:18 > 0:37:20Thank you. 54. 55?
0:37:20 > 0:37:2255. 56 on my left here.
0:37:22 > 0:37:24Half, thank you, in the back.
0:37:24 > 0:37:2756,500. Seven, can I say?
0:37:27 > 0:37:32At 57. Make it another half, is bid. Thank you. 57,500. Eight, can I?
0:37:32 > 0:37:34At £58,000. Am I missing you? Half.
0:37:34 > 0:37:37Thank you. Fresh bidder at 58,500.
0:37:37 > 0:37:40Nine seated here. At 59. Half.
0:37:40 > 0:37:43Thank you. At 59,500. 60 bid here.
0:37:43 > 0:37:45Can I take another one there, please?
0:37:45 > 0:37:47Are you coming back in, behind?
0:37:47 > 0:37:51How much... A half. Thank you. 60,500. I thought you'd got it.
0:37:51 > 0:37:53At 61. And another half. 61,500.
0:37:53 > 0:37:56Thank you. 62. 62 I'm bid.
0:37:56 > 0:37:59Do it again, sir. It's 62,000. Is it going to be another one?
0:37:59 > 0:38:03Change your mind if you like. At £62,000. It's yours, sir.
0:38:03 > 0:38:06Thank you very much. Buyer number ten.
0:38:06 > 0:38:12The successful bidders for that semi in Blackwood were local couple, Richard and Eileen.
0:38:12 > 0:38:18I met Richard to hear about their plans and it turned out he's a lot more local than I thought.
0:38:20 > 0:38:22Richard, congratulations. Nice to meet you.
0:38:22 > 0:38:24Why did you want to buy this house?
0:38:24 > 0:38:27I was born about 500 yards away.
0:38:27 > 0:38:31And at the moment, I still live 500 yards away but in a different house.
0:38:31 > 0:38:36- So I do know the area pretty well. - Pretty well.- Pretty well.
0:38:36 > 0:38:40You were born 500 yards away and you now live 500 yards away.
0:38:40 > 0:38:41That's right. Yeah. Not in the same house.
0:38:41 > 0:38:45I have moved once or twice, but always in Blackwood.
0:38:45 > 0:38:50When I was young, you know, and you get invited to birthday parties,
0:38:50 > 0:38:53I'm pretty certain this is one of the houses I came to, you know.
0:38:53 > 0:38:56Used to play kiss chase and things like that,
0:38:56 > 0:39:00- round the outside.- You were playing kiss chase in the garden.
0:39:00 > 0:39:02So it has very happy memories for you then.
0:39:02 > 0:39:05Yeah... bearing in mind, I was probably only four or five at the time, you know.
0:39:05 > 0:39:10And I did grow up slightly and I wasn't quite so tall at the time.
0:39:10 > 0:39:13Fantastic. So, tell me more about you.
0:39:13 > 0:39:16Well, basically, I retired about two and a half years ago.
0:39:16 > 0:39:21I had a specialist builder's merchant's company, about ten miles away.
0:39:21 > 0:39:26And we got to the stage where we thought we've got to start thinking
0:39:26 > 0:39:27about retirement in a few years' time.
0:39:27 > 0:39:34And obviously, we had some money for the business which we invested at the time,
0:39:34 > 0:39:39which over the last year or so, because of the credit crunch,
0:39:39 > 0:39:42we've just seen our income drop by about 80%.
0:39:42 > 0:39:45- 80%.- 80%. Yes.
0:39:45 > 0:39:47Good heavens.
0:39:47 > 0:39:51You know, and when we retired we thought, oh, we can live quite comfortably
0:39:51 > 0:39:55on our income from our capital.
0:39:55 > 0:40:00But we thought perhaps it's time now to do something else and look at something else to do.
0:40:00 > 0:40:03Plus, I was starting to get a little bit bored.
0:40:03 > 0:40:08# Golden years, gold... #
0:40:08 > 0:40:10So much for an early retirement.
0:40:10 > 0:40:14Seeing such a drop in their savings, Richard decided enough was enough.
0:40:14 > 0:40:18In order to secure their pension, he and his wife, Eileen,
0:40:18 > 0:40:23invested in a couple of properties which, so far, is going well.
0:40:23 > 0:40:30- What are the plans for it? - The plans are to strip it out a little bit, see what we come across.
0:40:30 > 0:40:34And then we decide on how much replastering's got to be done and
0:40:34 > 0:40:36how much work's got to be done to the kitchen.
0:40:36 > 0:40:40And if we're going to sell it, then obviously we're going to
0:40:40 > 0:40:43do it to a higher standard than if we're going to let it back out.
0:40:43 > 0:40:46- But you're not quite sure what you're going to do, at this point. - Not sure, at the moment.
0:40:46 > 0:40:52We've got a couple of other properties we've also bought, which are in stock,
0:40:52 > 0:40:53waiting for us to do something with.
0:40:53 > 0:41:01So we may renovate this one to a higher standard and sell it on.
0:41:01 > 0:41:07- You haven't talked about the front, which obviously was put there for somebody for wheelchair access.- Yes.
0:41:07 > 0:41:12What are you going to do about that? Are you going to leave it like that so it would be suitable for...?
0:41:12 > 0:41:17At the moment, I think we will because once somebody found out we bought it at auction,
0:41:17 > 0:41:22they came along to me and said, well, look, you know, if you're thinking of letting,
0:41:22 > 0:41:26we wouldn't mind being considered because we're expecting our first child
0:41:26 > 0:41:31and this would be ideal for us cos it's close to our mother, we can get the pram up and down.
0:41:31 > 0:41:34I hadn't thought about using it for a stroller. Yeah.
0:41:34 > 0:41:37But if we find that it does put people off, it's not too much
0:41:37 > 0:41:44of a job to put a machine in, get rid of it and reinstate a garden with a set of steps out the front.
0:41:44 > 0:41:49As the estate agent pointed out, lettings are strong in this area.
0:41:49 > 0:41:53For someone to have approached Richard before he's even started work is encouraging.
0:41:53 > 0:41:58But does the non-standard construction of this property worry him?
0:41:59 > 0:42:03No. Not at all. I've known these houses for many years and during my working life,
0:42:03 > 0:42:07I've worked on many of them, as well. So it's not a problem.
0:42:07 > 0:42:11It's never been a problem with mortgaging them or anything else.
0:42:11 > 0:42:17I did actually just check with my solicitor before we went to auction just to make certain that
0:42:17 > 0:42:20there isn't a problem if we did decide to sell it,
0:42:20 > 0:42:23for people to be able to get a mortgage on it.
0:42:23 > 0:42:25And he said no, there's no problem,
0:42:25 > 0:42:28he's dealt with many, many of these because there's an awful lot of them in this area.
0:42:28 > 0:42:31So how much are you planning to spend doing it up?
0:42:31 > 0:42:38Well, if we're going to let it, we've got a budget of about £5,000.
0:42:38 > 0:42:42But if we're going to do it to a standard for reselling,
0:42:42 > 0:42:47which includes a fair amount of replastering, especially upstairs...
0:42:47 > 0:42:52new electrics... well, I think it could go up to £8,000 or £9,000 then.
0:42:52 > 0:42:54What kind of timescale have you got?
0:42:54 > 0:42:59Well, we're going away in a couple of weeks' time and we're away for a month,
0:42:59 > 0:43:04so we're not really going to get much done before we go away.
0:43:04 > 0:43:06But we'd like to think that when we come back,
0:43:06 > 0:43:10about a month's work on it, cos again, it's just myself and my wife.
0:43:10 > 0:43:11She tells me what to do and I do it.
0:43:11 > 0:43:16In fairness, she's very good, very handy with a paintbrush.
0:43:16 > 0:43:21- And she's not bad on a cement mixer, as well.- Fantastic. - Yeah.- She's a keeper.
0:43:21 > 0:43:28Yes. So we're probably looking at six weeks' work, realistically...
0:43:28 > 0:43:31to get it into a reasonable order.
0:43:31 > 0:43:33Well, listen, congratulations. Good luck and we look forward to seeing how you get on.
0:43:33 > 0:43:35Thank you very much, indeed. Thank you.
0:43:37 > 0:43:45Well, from playing kiss chase in the garden to actually owning the house, Richard has come a long way.
0:43:45 > 0:43:50I am a little bit concerned that he doesn't know what he's going to do with it, though.
0:43:50 > 0:43:51Will he rent it or will he sell it?
0:43:51 > 0:43:57A very important decision cos everything hinges on it when it comes to the renovation.
0:43:57 > 0:44:00You can find out what he decides to do later in the show.
0:44:02 > 0:44:07In the game of property investment, you want to make sure you're holding all the cards.
0:44:07 > 0:44:12But did today's developers get a full house, or did they go bust?
0:44:12 > 0:44:14Time now for them to show us their hands.
0:44:19 > 0:44:20# You look like an angel... #
0:44:20 > 0:44:26When husband and wife Paul and Juliette paid £164,000 for this picturesque cottage
0:44:26 > 0:44:32near Canterbury, in Kent, it was because they fell in love with it, but inside, there was a dark side.
0:44:32 > 0:44:35# You're the devil in disguise
0:44:35 > 0:44:39# Oh, yes, you are Devil in disguise. #
0:44:39 > 0:44:43Subsidence had caused some major internal problems,
0:44:43 > 0:44:46but as Paul was a master builder, they didn't scare him.
0:44:46 > 0:44:51It took just ten weeks to fix and renovate. But it's not been easy.
0:44:51 > 0:44:53# Heaven knows how you lied to me
0:44:53 > 0:44:56# You're not the way you seemed... #
0:44:56 > 0:44:59I'd be fibbing if I said it wasn't a struggle. It has been a struggle.
0:44:59 > 0:45:03But, you know, no pain, no gain.
0:45:03 > 0:45:05You've just got to, you know,
0:45:05 > 0:45:08- buckle down and get on with it. - The best bit is seeing it all finished...
0:45:08 > 0:45:12really. And also, I'm really pleased with the way it has turned out.
0:45:13 > 0:45:17With the help of his trusted team, Paul has successfully
0:45:17 > 0:45:20exorcised this cottage and all those cracks are just a memory.
0:45:20 > 0:45:25While the couple hope to live here themselves one day, the initial plan was to renovate
0:45:25 > 0:45:28and let it to students for the next couple of years.
0:45:28 > 0:45:32To maximise their return, the dining room's now a bedroom
0:45:32 > 0:45:35and upstairs, Paul has made a few adjustments to the existing bedrooms.
0:45:35 > 0:45:42This was one of the larger bedrooms, but to create a bigger box room, we've put in this petition here...
0:45:42 > 0:45:46and here. So, as you can see, as we come in now to the box room...
0:45:46 > 0:45:48it's a bigger room.
0:45:48 > 0:45:50This was the original wall...
0:45:50 > 0:45:53of the box room. So we've knocked through here
0:45:53 > 0:45:59to give us a room for our wardrobe, desk and chest of drawers.
0:45:59 > 0:46:01And a nice area...
0:46:01 > 0:46:03for the bed.
0:46:03 > 0:46:08This gives us my square footage for student lettings, what they require.
0:46:08 > 0:46:12For a small cottage, there's actually quite a lot of room.
0:46:12 > 0:46:17However, if the four students can't find enough space in the communal lounge,
0:46:17 > 0:46:21or the brand new fitted kitchen, there's plenty of space outside.
0:46:21 > 0:46:25When we first looked at the property, the boundary came
0:46:25 > 0:46:27from over there, just down to that behind them trees there.
0:46:27 > 0:46:30Well, we had to clear it cos it was all overgrown.
0:46:30 > 0:46:32So we got a digger in, levelled it and we found
0:46:32 > 0:46:35that the boundary actually went far-reaching over there.
0:46:35 > 0:46:37So it makes the property a lot bigger here, the garden area.
0:46:37 > 0:46:41So we've levelled it off a bit, we've grass-seeded it.
0:46:41 > 0:46:44And it'll come up green so it's still an added benefit on the property, really.
0:46:44 > 0:46:50Although Paul has been busy on other projects, they've still completed this cottage on schedule.
0:46:50 > 0:46:55That work included underpinning to solve those structural issues, on top of a thorough renovation.
0:46:55 > 0:46:59Did they manage to stick to their original budget?
0:46:59 > 0:47:04I said 17, and you know, it really has cost 17.
0:47:04 > 0:47:09If I had put my own time on top of it, it probably would have come out more,
0:47:09 > 0:47:13but as it's my project, you tend to do a lot of things... you know,
0:47:13 > 0:47:15for nothing... for free.
0:47:15 > 0:47:20That brings the total investment to date to about 181,000.
0:47:20 > 0:47:25Now that it's finished, it's all ready for the first group of students.
0:47:25 > 0:47:28With this our first year of ever renting a house out to students,
0:47:28 > 0:47:31we went to a student letting agency, so they took all the hard work out.
0:47:31 > 0:47:35They found the students for us. And they've got four moving in.
0:47:35 > 0:47:39And they collect the rent but we'd be doing the partial management,
0:47:39 > 0:47:43so we'll still have a good eye on the cottage and any problems that come back to us.
0:47:43 > 0:47:50They paid 165,000 for this property at auction and spent £17,000 on renovation.
0:47:50 > 0:47:57To make it work, they're looking for about £1,200 per calendar month in rent.
0:47:57 > 0:48:00What will two local estate agents think of that?
0:48:12 > 0:48:14First time I've been back to the property
0:48:14 > 0:48:16and they've done a really good job on it.
0:48:16 > 0:48:19It's been done on a budget but it's been done pretty well.
0:48:19 > 0:48:20And they created a good student house.
0:48:20 > 0:48:24This will be good for students - it is detached, it has got parking
0:48:24 > 0:48:28and it is a configuration that can be let to four.
0:48:28 > 0:48:33And there are lots of groups of four looking to rent.
0:48:33 > 0:48:35Arguably, this is a really good student house.
0:48:35 > 0:48:38It's detached. It's got parking. It's a really quaint cottage.
0:48:38 > 0:48:40On the other hand, some of the bedrooms are quite small.
0:48:40 > 0:48:43It's got no ensuite facilities, so I think it's going to be
0:48:43 > 0:48:47much of a muchness for some of the purpose-built student accommodation.
0:48:47 > 0:48:50There is a massive demand for student accommodation in Canterbury.
0:48:50 > 0:48:56There are something like 35,000 students in the population of Canterbury, which is about 40%.
0:48:56 > 0:49:00That will be music to Paul and Juliette's ears, as they'll
0:49:00 > 0:49:04almost certainly be guaranteed tenants for as long as they want.
0:49:04 > 0:49:08What kind of rental do the estate agents think they could get?
0:49:08 > 0:49:10I'd expect a rental for this property in the student market to be
0:49:10 > 0:49:16somewhere around about £300 a room, per month, generating about £1,200 per calendar month.
0:49:16 > 0:49:21I would expect this one to let at about £300 per person, per room.
0:49:21 > 0:49:24£1,200 per calendar month.
0:49:24 > 0:49:25And the students pay for 11 months of the year.
0:49:25 > 0:49:30- Oh, good.- Yeah.- Right on the button there.- Who we went with.
0:49:30 > 0:49:33Yeah. It was obviously the right choice.
0:49:33 > 0:49:39No surprises there then. A good solid rental return.
0:49:39 > 0:49:43But has all the work done here increased the value of this property?
0:49:43 > 0:49:46The guide price for this cottage was £120,000-£130,000.
0:49:46 > 0:49:50They paid a little bit over the odds... 164,000...
0:49:50 > 0:49:53and they spent a reasonable amount on the property, £18,000.
0:49:53 > 0:49:57They've done a good job with that budget and I think they've created quite a good investment.
0:49:57 > 0:49:59It's going to be great for the student market
0:49:59 > 0:50:03and in terms of capital value, you're probably up to £225,000.
0:50:03 > 0:50:05- Yeah.- That's good. Yeah.
0:50:05 > 0:50:07That's a pleasant surprise. Yeah.
0:50:07 > 0:50:12In conclusion, it's a sound investment, both in rental and long-term value...
0:50:12 > 0:50:16exactly what Paul and Juliette planned all along.
0:50:16 > 0:50:19We're doing this for ourselves, long-term.
0:50:19 > 0:50:23Being self-employed, I haven't got a great pension, so you know, you have got to think about those things.
0:50:23 > 0:50:25It soon comes round.
0:50:25 > 0:50:31And it's been hard work, but you know, no money's easy.
0:50:31 > 0:50:36You've got to work at it, so yeah, it's been a good experience. We'll do it again.
0:50:40 > 0:50:44When Richard and his wife, Eileen, sold their builder's merchant's business
0:50:44 > 0:50:50and settled into early retirement, they thought their working days were behind them.
0:50:50 > 0:50:55But seeing their income drop as much as 80% due to the credit crunch,
0:50:55 > 0:50:58they decided to take action and invest in property.
0:50:58 > 0:51:05One of those was this three-bedroom semi in Blackwood which they bought for £62,000.
0:51:05 > 0:51:09We returned after nearly four months to find out how they'd got on.
0:51:09 > 0:51:12Well, first thing which is happening after three-and-a-half months,
0:51:12 > 0:51:15once we started it, we went away for a month.
0:51:15 > 0:51:23And we left it to a plasterer and in fairness, he did a first-class job of it.
0:51:23 > 0:51:26# We're all going on a summer holiday
0:51:26 > 0:51:29# No more working for a week or two... #
0:51:29 > 0:51:34I like Richard's style of developing, but in fact, this was no holiday.
0:51:34 > 0:51:40On their return, he, his son and wife Eileen did most of the work themselves.
0:51:40 > 0:51:46When we started in here, we realised that the wall wasn't actually the wall, it was hardboard and everything
0:51:46 > 0:51:52was fitted on to hardboard which was falling away from the existing walls.
0:51:52 > 0:51:56So we decided we had to rip it all out and start again.
0:51:56 > 0:51:58And we think it's come out quite well.
0:51:58 > 0:52:01The existing kitchen was not as big as this.
0:52:01 > 0:52:07We, obviously, strayed a bit in to the living area, but to compensate, we put the French
0:52:07 > 0:52:11windows in and generally, yes, we're very pleased with it. We are quite pleased with the way it's come out.
0:52:11 > 0:52:18As well as the new kitchen/diner, the whole property's been renovated to a high standard.
0:52:18 > 0:52:21But it took slightly longer than expected as they were working
0:52:21 > 0:52:25on another three properties they'd bought at the same time.
0:52:25 > 0:52:27So much for early retirement.
0:52:27 > 0:52:28# And I said
0:52:28 > 0:52:31- # Are you ready - Are you ready
0:52:31 > 0:52:33- # Are you ready - Are you ready
0:52:33 > 0:52:35# To retire. #
0:52:35 > 0:52:40Yes. It has been hard work and having several houses on the go at the same time
0:52:40 > 0:52:47has meant I'm working seven days a week now which is coming up to retirement with a vengeance.
0:52:47 > 0:52:52But, yes, I've enjoyed it. It gives me a purpose of getting up in the morning. The highlight of the day,
0:52:52 > 0:52:58a few months ago used to be walking my grandchildren down to school and picking them up in the afternoon.
0:52:58 > 0:53:01And I still like doing that. But I've certainly
0:53:01 > 0:53:05enjoyed being more hands-on than I have been for a couple of years.
0:53:05 > 0:53:11At the back of the house, Richard's wife, Eileen, has been busy with the garden and it's looking good.
0:53:11 > 0:53:17Overall, the renovation is a big improvement, but it must have cost a lot more than originally budgeted.
0:53:19 > 0:53:23We didn't pay a huge amount for the property to begin with.
0:53:23 > 0:53:26We put £11,000 into the property.
0:53:26 > 0:53:31And I'm still quite happy with what we've spent on it.
0:53:31 > 0:53:36When we first met, Richard hadn't decided whether to let this property or sell it.
0:53:36 > 0:53:43After investing a total of £73,000 buying and renovating, what's he decided to do with it?
0:53:43 > 0:53:48By putting the quality into the property as we were renovating it,
0:53:48 > 0:53:52in five years' time, that quality will still be there if we do decide to sell it.
0:53:52 > 0:53:56So we're going to rent it and actually we have a tenant for it.
0:53:56 > 0:54:03Richard paid just £62,000 for the property at auction and spent £11,000 on renovations.
0:54:03 > 0:54:08What will two local estate agents think of this property and its potential returns?
0:54:20 > 0:54:24I think this property has been renovated to a very high standard.
0:54:24 > 0:54:29The colours are neutral and will appeal to the majority of people,
0:54:29 > 0:54:33both in the rental market and for the sales market, also.
0:54:33 > 0:54:38I think the renovation is done to a very, very high standard.
0:54:38 > 0:54:40It's almost like a different house.
0:54:40 > 0:54:47The only downsides, I would say, at the moment, the bathroom, the way it is, won't appeal to everybody...
0:54:47 > 0:54:52and the front of the property is a bit of a different situation, as well.
0:54:52 > 0:54:56Hopefully, the tenant that Richard has lined up
0:54:56 > 0:55:01won't mind not having a bath, but that may depend on how much the rent is.
0:55:01 > 0:55:08For rental, I would expect this property to achieve anywhere between £475 and £500 per calendar month.
0:55:08 > 0:55:12Rental assessment on this property, I would say £500 per calendar month.
0:55:12 > 0:55:16Well, pretty much on the money there because we're actually letting it
0:55:16 > 0:55:22£495 per calendar month, so I think they were pretty close.
0:55:22 > 0:55:26With a tenant ready to move in, Richard is happy to let for a while.
0:55:26 > 0:55:31As he's invested a total of £73,000 buying and renovating this property,
0:55:31 > 0:55:35he needs to know what it might be worth in the current market.
0:55:35 > 0:55:40I'd put it on the market at £110,000, to look to achieve 105.
0:55:40 > 0:55:46- I would market the property between £110,000 and £115,000. - I've got no problem with that.
0:55:46 > 0:55:54I would have been happy if it was in the 95 mark and anything over the 100, quite happy with it.
0:55:54 > 0:55:58Based on those figures, Richard would make a pre-tax profit of
0:55:58 > 0:56:02around £30,000-£35,000 if he decided to sell.
0:56:02 > 0:56:04That would go a long way to helping him retire properly.
0:56:04 > 0:56:07# I want to retire
0:56:07 > 0:56:10# No longer required
0:56:10 > 0:56:13# I want to get by without the man on my back... #
0:56:13 > 0:56:15Am I tempted to sell?
0:56:15 > 0:56:18No. I think the lady who's going to rent the house tomorrow would
0:56:18 > 0:56:24strangle me if the day before she's due to move in, I change my mind. No.
0:56:24 > 0:56:28We're quite happy to long-term rent, nice tenants.
0:56:28 > 0:56:32Nice tenants coming in to a nice area, nice neighbours.
0:56:32 > 0:56:34I've got no problem with it.
0:56:34 > 0:56:36But the house will be a nice house for many years to come.
0:56:36 > 0:56:41With another two properties already on the go, it seems that Richard
0:56:41 > 0:56:45is quite content not to retire for at least another few months.
0:56:50 > 0:56:54So, lessons have been learned and some money has been made.
0:56:54 > 0:56:57So tune in again for some more Homes Under The Hammer.
0:56:57 > 0:56:59- We'll see you then.- Goodbye.
0:57:07 > 0:57:11Subtitles by Red Bee Media Ltd