0:00:02 > 0:00:04Hello and welcome to Homes Under The Hammer.
0:00:04 > 0:00:05There are lots of reasons why people buy property at auction.
0:00:05 > 0:00:09Is it the speedy completion, the wide variety of properties on offer,
0:00:09 > 0:00:11or the chance to bag yourself a bargain?
0:00:11 > 0:00:17Whatever you motivation, the opportunities are there when you buy your home under the hammer.
0:00:42 > 0:00:46Of course, Lucy and I have bought properties at auction in the past,
0:00:46 > 0:00:49and it is an experience like no other.
0:00:49 > 0:00:52Oh yes. The moment the hammer goes down, you know you're committed,
0:00:52 > 0:00:55and that's when the real hard work begins.
0:00:55 > 0:00:58So what did our buyers go for on today's show?
0:00:59 > 0:01:04This house in Croydon, Surrey, is a little dated for my taste.
0:01:04 > 0:01:08I'd say get rid of it. It's ugly.
0:01:08 > 0:01:10Here's hoping this flat in Shotts
0:01:10 > 0:01:13in Lanarkshire doesn't leave me in the dark.
0:01:16 > 0:01:18I love that. Electronic dimmer.
0:01:18 > 0:01:20And remember this chapel in Dorset?
0:01:20 > 0:01:25The first attempt to resurrect it left it flattened.
0:01:25 > 0:01:29Stay tuned to see how it's saved by divine inspiration.
0:01:30 > 0:01:33All these properties have been sold at auction.
0:01:33 > 0:01:36We find out who bought them and for how much, when they went under the hammer.
0:01:36 > 0:01:37That's yours.
0:01:41 > 0:01:45I'm just around the corner from today's property, which is in Croydon.
0:01:45 > 0:01:49Now, I'm always puzzled as to where Croydon actually is.
0:01:49 > 0:01:54Some people say it's in south London but it's officially in Surrey.
0:01:54 > 0:01:59It is, though, just a mere ten miles from London centre, and that is a great start
0:01:59 > 0:02:03if you work in the capital, but you want that commuter-town living.
0:02:03 > 0:02:07As the Tube line is due to be extended to nearby West Croydon,
0:02:07 > 0:02:10this area will be even more connected in a year or two.
0:02:10 > 0:02:12# You make sure you're connected
0:02:12 > 0:02:14# The writing's on the wall... #
0:02:14 > 0:02:17Croydon is perfect commuter territory and the houses here
0:02:17 > 0:02:25are a desirable mix of old Victorian town houses, Edwardian semis, and ex-council properties.
0:02:26 > 0:02:27So, this is it.
0:02:27 > 0:02:31Well, there's a little mini Chelsea Flower Show going on here.
0:02:31 > 0:02:35You can see the neighbours take care of their home, which is a good sign.
0:02:35 > 0:02:38Now, this is an ex-local authority linked terraced town house.
0:02:38 > 0:02:43Probably dating around the 1960s, by the look of the property.
0:02:43 > 0:02:45It's in the middle of a council estate where there are a lot of
0:02:45 > 0:02:50these homes and they're now owned by the occupiers, which I think is great news.
0:02:50 > 0:02:56The guide price for this three-bedder is £115,000 to £125,000.
0:02:57 > 0:03:03That's a great price for a three-bedroom property so close to London. But it does need some TLC.
0:03:03 > 0:03:05While everything might be looking rosy outside,
0:03:05 > 0:03:09thanks to the neighbours, what will the place be like inside?
0:03:11 > 0:03:16We are the Village Green Preservation Society...
0:03:16 > 0:03:21'60s-built houses were all about being modern on the outside as well
0:03:21 > 0:03:25as inside, and they're usually a lot simpler in style.
0:03:25 > 0:03:28I'm glad to say there's a downstairs loo here. That is a bonus.
0:03:28 > 0:03:31And this hallway makes this house feel very spacious.
0:03:31 > 0:03:35You could even use this area and put a desk and computer here.
0:03:35 > 0:03:40Although before anything gets plugged in, the electrics look like they need a full safety check.
0:03:40 > 0:03:42# Danger, danger
0:03:42 > 0:03:48- # High voltage... # - And talking of shocks, there was one waiting for me in the kitchen.
0:03:48 > 0:03:51Wait a minute! Have a look at those tiles!
0:03:51 > 0:03:55An interesting little design feature going on there, I think.
0:03:55 > 0:03:59Even though it's a spacious kitchen, I think it could benefit from some reorganisation.
0:03:59 > 0:04:02There's just too many units in there.
0:04:02 > 0:04:06Now, a real '60s fad was this through dining room lounge,
0:04:06 > 0:04:09which today we all love communal living, don't we?
0:04:09 > 0:04:12Sadly, there's no beautiful architectural features in here.
0:04:12 > 0:04:15You have got a big space and it leads out to the garden
0:04:15 > 0:04:19but you've got lots of this prickly Artex everywhere.
0:04:19 > 0:04:21And look at this.
0:04:21 > 0:04:23A big fireplace.
0:04:23 > 0:04:25It's not really looking hot in here.
0:04:25 > 0:04:28I'd say get rid of it. It's ugly.
0:04:28 > 0:04:30# If I had a hammer
0:04:30 > 0:04:33# I'd hammer in the morning... #
0:04:33 > 0:04:37That's a big problem with buying old '60s council houses.
0:04:37 > 0:04:40Some are, well, a little dated in the decor department.
0:04:40 > 0:04:44But if taste is the only burning issue about this place, that's a great sign.
0:04:44 > 0:04:47Upstairs there's plenty more to see.
0:04:49 > 0:04:52So upstairs on the first floor we've got a back bedroom there.
0:04:52 > 0:04:56It's a good sized double. Along this landing you've got the bathroom.
0:04:56 > 0:04:59Come back, come back! Have a look at that. More of those tiles!
0:04:59 > 0:05:01Urgh! Somebody has literally stuck tile upon tile. Very interesting.
0:05:01 > 0:05:09What I like about this house is that there's a third floor, a bedroom up in the eaves, which is fantastic.
0:05:09 > 0:05:12And here, the bedroom to the front. Look at these windows.
0:05:12 > 0:05:15They allow loads of light coming into this property.
0:05:15 > 0:05:17You know what, if it's a period house you want,
0:05:17 > 0:05:21with lots of architectural features, this isn't the one for you.
0:05:21 > 0:05:24But if it's space and light and easy living,
0:05:24 > 0:05:26this is a nice one.
0:05:26 > 0:05:31At a guide price of £115,000 to £125,000, I reckon it's a fantastic
0:05:31 > 0:05:35investment for somewhere so close to central London.
0:05:35 > 0:05:38It just needs some loving attention and redecoration.
0:05:38 > 0:05:44Then I'm sure whoever buys it could tap into a good return for their money.
0:05:45 > 0:05:48But what does an expert think?
0:05:48 > 0:05:52I asked a local estate agent to take a look.
0:05:52 > 0:05:56Looking at the property, definitely you need a new kitchen, a new bathroom, new central heating.
0:05:56 > 0:06:01The old garden needs to be looked after as well.
0:06:01 > 0:06:03Whew! What an exhaustive list!
0:06:03 > 0:06:10Most of that is cosmetic but all that plus sorting out the electrics could cost around 20,000.
0:06:10 > 0:06:15However, on the upside, the flat does have a very valuable strip of off-street parking,
0:06:15 > 0:06:19handy for the commuter until that Tube is finished.
0:06:19 > 0:06:24Now, the advantage of this one is obviously you've got the garage, which you can turn into various use.
0:06:24 > 0:06:27You can even make an extra bedroom from getting the right planning.
0:06:27 > 0:06:34If you got that planning permission, a garage conversion could turn this into a four-bedroom property.
0:06:34 > 0:06:38Not bad for a guide price of £115,000 to £125,000.
0:06:38 > 0:06:42But what does the estate agent think it could resell for?
0:06:42 > 0:06:47The value of the property will be in the region of £165,000.
0:06:47 > 0:06:51So if it sold for the guide price and had 20,000 spent on it,
0:06:51 > 0:06:55that would mean a healthy £20,000 pre-tax profit.
0:06:55 > 0:06:57How much could it get on the rental market?
0:06:57 > 0:06:59Again, once the renovation has been done,
0:06:59 > 0:07:05you'd be looking at approximately between £1,000 per calendar month to £1,050 per calendar month.
0:07:05 > 0:07:13But the markets could always perk up and £1,050 per month still gives a yield of almost 9%.
0:07:13 > 0:07:15That's more than many bank accounts could offer.
0:07:15 > 0:07:19Love them or hate them, these '60s-built ex-local authority
0:07:19 > 0:07:24properties are solid, but there is a fair bit of work to do here.
0:07:24 > 0:07:27The location is already perfect, though, for commuting,
0:07:27 > 0:07:30and it'll get all even better when that new Tube line rolls into town.
0:07:30 > 0:07:34Who saw the potential? Let's go to auction and find out.
0:07:34 > 0:07:38This came up near the end of the day when the room was a little quieter?.
0:07:38 > 0:07:42So we come to lot 201, 40 Queen's Road, Croydon in Surrey.
0:07:42 > 0:07:44Start with 100, please.
0:07:44 > 0:07:46Thank you, sir. £100,000. 102,500, sir?
0:07:46 > 0:07:51105. 105. 107,500. 110.
0:07:51 > 0:07:57112,500. 115. 117,250. 120.
0:07:57 > 0:08:00122,500. 125.
0:08:00 > 0:08:04127,500. 130.
0:08:04 > 0:08:0612,500, yes?
0:08:06 > 0:08:10135. 137,500 here. 140.
0:08:10 > 0:08:12You wanted to bid, 140?
0:08:12 > 0:08:14Your bid at 137,500, yes?
0:08:14 > 0:08:18140, white shirt. 142,500.
0:08:18 > 0:08:21142,500. 145. 147,500.
0:08:22 > 0:08:24150.
0:08:24 > 0:08:27150. 152,500.
0:08:28 > 0:08:31No. 150 in the white shirt.
0:08:31 > 0:08:35On my left. Take 1,000. 151.
0:08:35 > 0:08:3651. 52.
0:08:36 > 0:08:38152.
0:08:38 > 0:08:4252. 53. At 152,000 I have.
0:08:42 > 0:08:45The first time at 152.
0:08:45 > 0:08:47Second time at 152.
0:08:47 > 0:08:50Third and last time. It's your bid, sir. 152.
0:08:50 > 0:08:52£1,000, anybody else?
0:08:52 > 0:08:54Done? That's yours.
0:08:54 > 0:08:56152. Have you got that?
0:08:56 > 0:08:59The top bidder was Midlands-born Gareth.
0:08:59 > 0:09:04He's a meat buyer by trade, though he certainly wasn't ham-fisted at the auction.
0:09:04 > 0:09:08He bought the house for £25,000 over the guide price and is hoping to cut
0:09:08 > 0:09:12as good a deal on the property market as he did in the meat market.
0:09:14 > 0:09:16Gareth, congratulations. Well done.
0:09:16 > 0:09:19- Thank you.- So what limit did you set on auction day?- 150.
0:09:19 > 0:09:22Oh, and you just tiptoed over that, didn't you?
0:09:22 > 0:09:26Yes. I've lost property before for 1,000 or thereabouts.
0:09:26 > 0:09:29I was very disappointed after I left, and thought I should have gone that extra bit.
0:09:29 > 0:09:32But I didn't. So this time I decided to do it.
0:09:32 > 0:09:38He nabbed it by going just 2,000 over his £150,000 budget. Not bad.
0:09:38 > 0:09:43And despite those tiles, Gareth was more than happy with his purchase.
0:09:43 > 0:09:46So what was it about this house that you liked when you saw it?
0:09:46 > 0:09:49The size. It's very deceptive from the front but there's a nice big lounge,
0:09:49 > 0:09:53reasonable size kitchen, the bedrooms are a reasonable size, bathroom is a reasonable size.
0:09:53 > 0:09:55Yes, it's good.
0:09:55 > 0:09:57And most of the work I can do myself.
0:09:57 > 0:10:03And that's lucky, because there's a lot of renovation to do and it'll certainly keep the costs down.
0:10:03 > 0:10:05He'll get experts in for the central heating and the electrics, though.
0:10:05 > 0:10:08Always important for safety's sake.
0:10:10 > 0:10:11And what sort of budget are you looking at?
0:10:11 > 0:10:15- Hopefully about seven.- Seven?
0:10:15 > 0:10:18I thought you were going to say 15, possibly 20. And you come down!
0:10:18 > 0:10:22- Yes.- So you think you can do all of this for 7,000?
0:10:22 > 0:10:25Hopefully. I probably will go up to ten, because there are bound to be little bits I don't know about.
0:10:25 > 0:10:27But I'm quite happy to do that.
0:10:27 > 0:10:32That's half the estimated renovation expense of £20,000.
0:10:32 > 0:10:35How is he keeping the costs so low?
0:10:35 > 0:10:41The deal he did for a new kitchen to replace that tired, dated one will certainly help.
0:10:41 > 0:10:43The one I've bought is £8,500, but I got it for £1,500.
0:10:43 > 0:10:48Wait a minute. You've bought an £8,500 kitchen, for £1,000?
0:10:48 > 0:10:50They were closing down, it was a display model.
0:10:50 > 0:10:52They wanted £4,000 for it.
0:10:52 > 0:10:57I offered them 2,000, they accepted, then phoned me back and said that the boss said no.
0:10:57 > 0:11:00So I went to see them again, and they said, no.
0:11:00 > 0:11:02I said, ask him to phone me.
0:11:02 > 0:11:05He said he'd phone me on Monday, but he never did. So I went in on
0:11:05 > 0:11:08the Wednesday, and they said that he'd said he could do it for 2,000.
0:11:08 > 0:11:12I said, no, I've changed my price now. £1,500.
0:11:12 > 0:11:14They were closing on the Friday, so they had to take it.
0:11:14 > 0:11:17So you got it for £1,500. And, does it look like an expensive kitchen?
0:11:17 > 0:11:21It's a hand-built, hand-painted kitchen. With granite work surfaces.
0:11:21 > 0:11:23It's going to look fantastic in there, isn't it?
0:11:23 > 0:11:28There will be lots of bits left over as well, which I'll probably use in the bathroom as cabinets and stuff.
0:11:28 > 0:11:30So, are you a bit of a wheeler-dealer at heart?
0:11:30 > 0:11:32No, I'm a trader by heart.
0:11:32 > 0:11:35I'm a meat trader, meat buyer.
0:11:35 > 0:11:36I know there's always a deal to be had.
0:11:36 > 0:11:38Do you enjoy that process, having that deal?
0:11:38 > 0:11:42Oh, yes. I don't buy anything without negotiating.
0:11:42 > 0:11:45Everything I buy, even down to fruit and veg.
0:11:45 > 0:11:47So you never pay the price on the tag, do you?
0:11:47 > 0:11:49No. Not if I can help it.
0:11:49 > 0:11:53Obviously, Gareth is a shrewd businessman, so if
0:11:53 > 0:11:58you want a bargain it's definitely worth taking a leaf out of his book.
0:11:58 > 0:12:02He paid for this place with savings, as he saw a window of opportunity to
0:12:02 > 0:12:06make more money than he would by leaving it in the bank.
0:12:06 > 0:12:12But is he worried about the slump in the property market, and how it'll affect this investment?
0:12:12 > 0:12:16A lot of people at the moment are a little bit cautious about investing in property.
0:12:16 > 0:12:18There's been a horrendous downturn.
0:12:18 > 0:12:24And he you are, with all your money in the bank, sitting tight, deciding to invest in property. Why is that?
0:12:24 > 0:12:27I see the market moving back up again.
0:12:27 > 0:12:29We're having a little glitch at the moment. It's a good time to buy.
0:12:29 > 0:12:33There's a lot more property coming up for auction.
0:12:33 > 0:12:37I know people who have bought outside of auctions as well, and made some serious money.
0:12:37 > 0:12:40I think it's always the same when there's a recession, that's when people make money.
0:12:40 > 0:12:43Gareth, it's been so nice to meet you. Good luck with this project.
0:12:43 > 0:12:45- I really hope you stick under £10,000.- I will do.
0:12:45 > 0:12:48I've got a funny feeling you might creep over.
0:12:48 > 0:12:49- No, I don't think so. - Shall we have a bet on that?
0:12:49 > 0:12:51Yes, tenner.
0:12:51 > 0:12:53All right, I'll hold you to that.
0:12:57 > 0:13:04I'm in Scotland, at a place called Shotts, which is allegedly named after Bertram de Schott, a giant
0:13:04 > 0:13:11who used to prey on unsuspecting travellers, and was eventually slain by a brave young gentleman.
0:13:11 > 0:13:13Well, the big question is, will today's property present
0:13:13 > 0:13:18giant opportunities, or be a shot in the dark?
0:13:21 > 0:13:23What's clear as day, though, is Shotts' ideal location.
0:13:23 > 0:13:30Slap-bang between Glasgow and Edinburgh, with only about 45 minutes train journey to each.
0:13:30 > 0:13:34This is Erskine Gardens, easy walking distance to the train
0:13:34 > 0:13:37station, it seems to be a fairly nicely maintained development.
0:13:37 > 0:13:43I'm here to see a two bedroom flat at a guide price of just £45,000.
0:13:45 > 0:13:50This modern, ground-floor flat is tucked off the main road on this little estate, with its own parking.
0:13:50 > 0:13:56There's plenty of wind up here in Shotts, so there's even somewhere to hang up your washing.
0:13:56 > 0:13:58It's all rather pleasant.
0:13:58 > 0:14:00I wonder if the inside will be just as neat and tidy?
0:14:03 > 0:14:05It seems all right. Good start.
0:14:05 > 0:14:09Hang on a second, a small crack there.
0:14:09 > 0:14:11But bearing in mind this is a fairly new build,
0:14:11 > 0:14:15I'd put that down to settlement in the early stages of build.
0:14:15 > 0:14:17What have we got? Storage radiators.
0:14:17 > 0:14:21Again, because it's new, I wouldn't worry too much about putting any other kind of heating in here.
0:14:21 > 0:14:24It's probably not worth the expense.
0:14:24 > 0:14:26It's clean, it's tidy, it could do with a little freshening up.
0:14:26 > 0:14:29But you'd kind of expect that. This is the second bedroom.
0:14:29 > 0:14:32Not a bad size. Laminate flooring, which is good.
0:14:32 > 0:14:35Then, the kitchen.
0:14:35 > 0:14:37Well, straight out of the showroom.
0:14:37 > 0:14:39Good start.
0:14:39 > 0:14:42In fact, the fixtures and fittings are decent quality throughout.
0:14:42 > 0:14:45Just a bit dusty, that's all.
0:14:45 > 0:14:47But I see the bathroom has been nicely spruced up.
0:14:47 > 0:14:50Even the toilet seat sparkles.
0:14:53 > 0:14:55As with all new builds, space is a little tight.
0:14:55 > 0:15:00But you could remove these fitted wardrobes for more space in the bedroom.
0:15:03 > 0:15:07Overall, the flat could do with a clean, but there's one thing I wouldn't change for anything.
0:15:14 > 0:15:17I love that. Electronic dimmer.
0:15:17 > 0:15:19You know, the smallest things amuse a Martin.
0:15:19 > 0:15:24I'm just trying to find things to talk about in this place, because not a lot needs to be done.
0:15:24 > 0:15:26Here, in the lounge, it's a good size space.
0:15:26 > 0:15:31You've got laminate flooring. Yes, there's a bit of skirting needs replacing there.
0:15:31 > 0:15:35You might not like the shag-pile carpet in the main bedroom, you could replace that.
0:15:35 > 0:15:36But these are trifling things.
0:15:36 > 0:15:39A little bit of money spent here, maybe a lick of paint on the walls.
0:15:39 > 0:15:43Maybe, I don't know, quick brush up, not much really.
0:15:43 > 0:15:45Think I'll go back to playing with that the light switch.
0:15:45 > 0:15:50If only it was this easy to brighten up the dark, blustery Shotts weather.
0:15:55 > 0:15:58Well, I thought it was too good to be true.
0:15:58 > 0:16:01I've finally found something with the house that needs to be done.
0:16:03 > 0:16:07There it is. You need a new door handle.
0:16:07 > 0:16:10Sorry. Best I can do!
0:16:10 > 0:16:16Well, you know a property must be a great find if all it needs is a new door handle.
0:16:16 > 0:16:18And maybe some fresh flowers, too.
0:16:20 > 0:16:23Just to make sure I haven't shot myself in the foot with this Shotts
0:16:23 > 0:16:30property, guided at £45,000, I asked a local estate agent along to see what she thought.
0:16:33 > 0:16:36This flat is a bright, modern flat.
0:16:36 > 0:16:42It's got fairly good sized rooms, it's got a lovely kitchen and bathroom.
0:16:42 > 0:16:47I think this property would appeal probably best to the first time
0:16:47 > 0:16:52buyer, or someone who was going to buy to let the property out.
0:16:54 > 0:17:01It would only cost about £1,500 to bring it back to life, but how much could it make if it were resold?
0:17:03 > 0:17:12Once renovated, I'd put this property on the market for resale at approximately £62,000.
0:17:12 > 0:17:16Based on the £45,000 guide price for this two-bedroomed property,
0:17:16 > 0:17:21there could be a potential £15,000 pre-tax profit.
0:17:21 > 0:17:25Great news for a property developer, but what about a prospective landlord?
0:17:25 > 0:17:34I'd put this property on the rental market for £375-£400 per calendar month.
0:17:34 > 0:17:39That's almost £5,000 per year, which could mean a 10% return on your investment.
0:17:39 > 0:17:43And, with the rental market healthy in this area,
0:17:43 > 0:17:46buying to let could be a great option, too.
0:17:48 > 0:17:53Well, this flat may look like the perfect investment opportunity, and that's because it is.
0:17:53 > 0:17:58If you want a hassle-free investment that could deliver good returns, you need look no further.
0:17:58 > 0:18:00Let's see who spotted it at the auction.
0:18:02 > 0:18:07Lot number 9 is the next available Lot, guide price here's £45,000.
0:18:07 > 0:18:0945? Are you going 45, so? You are.
0:18:09 > 0:18:12£46,000 at the front, here.
0:18:12 > 0:18:14Against you, sir.
0:18:14 > 0:18:1647? 47 it is.
0:18:16 > 0:18:1848.
0:18:18 > 0:18:2148,000 against you, sir.
0:18:21 > 0:18:25Go 49? £49,000. £50,000 against you now.
0:18:25 > 0:18:27500? I'll go 500.
0:18:27 > 0:18:3050,500. 51. 500? 51,500.
0:18:30 > 0:18:3352.
0:18:33 > 0:18:34£52,000.
0:18:37 > 0:18:40500? 53 it'll be. £53,000.
0:18:40 > 0:18:44£53,000, seated near the front. 500, sir?
0:18:46 > 0:18:4953,500. 54.
0:18:49 > 0:18:53And 500. £55,000 now.
0:18:53 > 0:18:58£55,000. 500, sir?
0:18:58 > 0:19:01And 500. 56.
0:19:01 > 0:19:04£56,000. 500?
0:19:06 > 0:19:1256,500. £57,000. He shakes his head, I'll go 250 if it helps you?
0:19:12 > 0:19:1357,250?
0:19:17 > 0:19:19Yes, £57,250. And a half.
0:19:19 > 0:19:2257,500. You're definitely out?
0:19:22 > 0:19:25£57,500, seated near the front.
0:19:25 > 0:19:27Anyone else coming in?
0:19:27 > 0:19:30£57,500 and I'm going to sell.
0:19:32 > 0:19:34Last chance.
0:19:36 > 0:19:38Sold at £57,500. Congratulations.
0:19:38 > 0:19:42The final bid was made by Laura, who's local to Shotts.
0:19:46 > 0:19:51Her parents have bought the flat for the property development side of the family business.
0:19:51 > 0:19:55Laura manages the properties for them, and already has a portfolio of eight.
0:19:59 > 0:20:01- Laura, lovely to meet you. - And you, too.
0:20:01 > 0:20:03Tell me a bit more about the family business.
0:20:03 > 0:20:05It's a small engineering company.
0:20:05 > 0:20:08Started by my parents about 25 years ago.
0:20:08 > 0:20:10Specifically industrial boilers.
0:20:10 > 0:20:16- Have you been sort of tasked with taking on the property side of things?- Yes, yes.
0:20:16 > 0:20:21As much as I hate to admit it, engineering isn't particularly a woman's business.
0:20:21 > 0:20:27I try my hardest, but I just can't figure out one end of a screwdriver to the next.
0:20:27 > 0:20:30But Laura does know her way around the property market.
0:20:30 > 0:20:36At the auction she managed to get the flat for less than her £60,000 budget.
0:20:36 > 0:20:38So, what do you think about what you paid at auction?
0:20:38 > 0:20:40I think we did very well.
0:20:40 > 0:20:44- It was bought as a new-build five years ago for £58,500.- Wow!
0:20:44 > 0:20:49We paid £57,500 at auction, so, I mean, straight away, we have
0:20:49 > 0:20:54a five-year old property having paid less than what it cost new.
0:20:54 > 0:20:59To get a property cheaper than it cost five years ago is a sign of the times.
0:20:59 > 0:21:07With the £2,500 saving she's made, she can easily afford her £750 renovation budget.
0:21:07 > 0:21:08What's the plan for it, then?
0:21:08 > 0:21:14A quick sort of spruce up, there's nothing structurally needs done to it. Paint all the surfaces.
0:21:14 > 0:21:17Change a couple of the floor coverings. New blinds.
0:21:17 > 0:21:21And market it for rental.
0:21:21 > 0:21:23Any idea how long it's going to take to sort it out?
0:21:23 > 0:21:30Ideally, getting some family members involved, maximum maybe a week.
0:21:30 > 0:21:35However, in Scotland just now, it's our sort of local area holiday.
0:21:35 > 0:21:40But I'd think, worst case, we'll have it ready to go on the market maybe within two or three weeks.
0:21:43 > 0:21:47That means she can start making money back on the property almost immediately.
0:21:47 > 0:21:53But, despite a great buy, it's good to hear Laura isn't going to be resting on her laurels.
0:21:56 > 0:21:58So what next?
0:21:58 > 0:22:01- We stop spending for a while. - Do you?
0:22:01 > 0:22:03Just consolidate.
0:22:03 > 0:22:08Make sure everything, all the maintenance is good on all the properties we've got.
0:22:08 > 0:22:12Just sit back and primarily see what happens to the market.
0:22:12 > 0:22:16Historically, it's been good to put your money in bricks and mortar.
0:22:16 > 0:22:19But historically it had also been good to put your money in the bank,
0:22:19 > 0:22:22but that's getting a bit risky these days.
0:22:22 > 0:22:28We're at a good place to manage almost on a part-time basis the properties that we've got.
0:22:28 > 0:22:30So, we're happy to stay at this level just now.
0:22:30 > 0:22:36Her parents may actually own the flat, but Laura is certainly doing them proud.
0:22:36 > 0:22:38What do you get out of it?
0:22:38 > 0:22:40Erm...
0:22:40 > 0:22:45the satisfaction of coming into something like this and getting it all done up.
0:22:47 > 0:22:49And just
0:22:49 > 0:22:51meeting people. And a wage at the end of the day.
0:22:51 > 0:22:54- So you're child labour?- Absolutely.
0:22:54 > 0:22:57I'd say cheap labour, but my dad will disagree with that one.
0:23:00 > 0:23:04Well, buying low-cost properties that don't need too much work doing to them so they
0:23:04 > 0:23:10can be put straight back on to the rental market isn't a bad strategy in today's current economic climate.
0:23:10 > 0:23:15But, will Laura's passion for property still be blooming when we come back?
0:23:15 > 0:23:18You can find out later in the show.
0:23:18 > 0:23:21Coming up - I visited this chapel in Dorset two years ago.
0:23:21 > 0:23:25The first stage of its renovation was dramatic.
0:23:25 > 0:23:28Find out later how it's been resurrected.
0:23:28 > 0:23:34Back in Shotts, Laura reveals what it's been like working closely with her family.
0:23:34 > 0:23:36There's the odd argument.
0:23:36 > 0:23:39But we all agree in the end.
0:23:39 > 0:23:43But first, we discover Gareth had more than just a paint job on his hands.
0:23:43 > 0:23:48We ended up with the ceiling coming down, so we had to replace the ceiling.
0:23:51 > 0:23:56We return to a very rainy Croydon, to catch up with Gareth.
0:23:56 > 0:24:01A meat buyer by trade, he's now entered the world of property development with his wife Sarah.
0:24:01 > 0:24:03It's the perfect partnership.
0:24:04 > 0:24:08He's hoping to make a good return on this three-bedroom ex-council house.
0:24:08 > 0:24:13When I spoke to him last, he didn't seem worried about the current economic climate.
0:24:13 > 0:24:16I see the market moving back up again.
0:24:16 > 0:24:18We're in a little glitch at the moment. It's a good time to buy.
0:24:18 > 0:24:26He bought it at auction for £152,000, which was more than £25,000 over the guide price.
0:24:29 > 0:24:31This is Gareth's first investment property.
0:24:31 > 0:24:33But he almost missed out on it at auction.
0:24:33 > 0:24:37Luckily, Sarah was there to goad him on.
0:24:37 > 0:24:40Gareth had been to quite a few auctions over the preceding months,
0:24:40 > 0:24:43and missed out by just the odd 1,000 or 2,000.
0:24:43 > 0:24:47So, that was me nudging, saying, "Go for it!"
0:24:48 > 0:24:51What did he get for his money? A spacious, three-bedroomed house,
0:24:51 > 0:24:54although it was a little rough round the edges.
0:24:56 > 0:25:02It was unloved. It had not been lived in for a couple of years.
0:25:02 > 0:25:03It just needed some TLC.
0:25:03 > 0:25:06It was very tatty.
0:25:06 > 0:25:12Horrendous decoration... Bathroom and kitchen that you wouldn't want to be anywhere near.
0:25:12 > 0:25:14It was a challenge.
0:25:14 > 0:25:20But they certainly rose to that challenge and the place has been transformed.
0:25:20 > 0:25:24- # I got you to hold my hand - I got you to understand...
0:25:26 > 0:25:28# I got you to walk with me
0:25:30 > 0:25:32# I got you to talk to me
0:25:32 > 0:25:34# I got you to kiss good night
0:25:36 > 0:25:37# I got you to hold me tight... #
0:25:41 > 0:25:43We've basically stripped it down to basics.
0:25:43 > 0:25:47Took most of the plaster off the walls, took all the tiles out,
0:25:47 > 0:25:51took out the bathrooms, the downstairs toilet, the kitchen...
0:25:51 > 0:25:54Erm, rebuilt it from scratch, basically.
0:25:54 > 0:25:56Rip it up and start again...
0:25:56 > 0:26:01What a sparkling and clean and tidy house it is now.
0:26:01 > 0:26:05New carpets throughout and a fresh lick of paint in all the rooms,
0:26:05 > 0:26:07plus there's a brand new bathroom and kitchen.
0:26:07 > 0:26:13All the fittings have been replaced and rewired, although not without a few shocks along the way.
0:26:13 > 0:26:17The wiring was external not internal so there's trunking all around the place.
0:26:17 > 0:26:22When we disconnected that we found out wiring in other rooms didn't work, so we had to have the whole
0:26:22 > 0:26:27of the downstairs rewired, which was an unexpected thing, but, again, we did it.
0:26:27 > 0:26:30But there was something even more shocking in the house.
0:26:30 > 0:26:36That crazy, '60s fireplace, it was top of Gareth's hit list.
0:26:36 > 0:26:39That was the first thing we took out.
0:26:39 > 0:26:42We got a big lump hammer and skip and that was the first job we did.
0:26:42 > 0:26:45When we did that we ended up with the ceiling coming down so we had
0:26:45 > 0:26:51to replace the ceiling and do a lot more plastering on the walls than we anticipated but we got it done.
0:26:51 > 0:26:54Gareth did most of the work on the house himself,
0:26:54 > 0:26:58apart from the electrics, but wife, Sarah, also lent a hand.
0:26:58 > 0:27:02One of my first jobs was to sort the outside out, the gardens both
0:27:02 > 0:27:05front and back because they were such a mess, rubbish everywhere.
0:27:05 > 0:27:07I didn't want it looking like a building site.
0:27:07 > 0:27:13I know what men are like once they get going, destructive and just throw everything everywhere.
0:27:13 > 0:27:15That was my priority in getting it sorted.
0:27:18 > 0:27:22Gareth maybe a messy worker but the end results are certainly not rubbish.
0:27:22 > 0:27:24The best part, I think, is the kitchen. I think the kitchen looks fantastic.
0:27:24 > 0:27:31It's probably a bit overspec for the house considering it's going to be rented out but we're happy with it.
0:27:31 > 0:27:34My wife wants to take it home and put it in our house.
0:27:34 > 0:27:39I bet she does! That's the £8,000 kitchen he got from a mere £1,500!
0:27:39 > 0:27:42It looks fantastic!
0:27:42 > 0:27:47Thank goodness those tiles have gone, but did they survive in the bathroom?
0:27:47 > 0:27:51The bathroom was horrible. Bright red tiles, needed a lot of work.
0:27:51 > 0:27:54A new ceiling, new floors...
0:27:54 > 0:27:56I think it's now bright, clean...
0:27:56 > 0:27:58I like the style, I like the tiles.
0:27:58 > 0:28:03We have this wonderful bargain, £17.01 for the mirror and the sink.
0:28:03 > 0:28:06I just think it's wonderful. I'm really, really happy with it.
0:28:07 > 0:28:15Yes, you heard her right, £17.01 for a sink and mirror worth £500!
0:28:15 > 0:28:17Gareth's a real bargain hunter.
0:28:17 > 0:28:22He thought he'd do all the renovations for under 10,000 but I wagered him he wouldn't.
0:28:22 > 0:28:24- Shall be have a bet on that? - Yeah, go on.
0:28:24 > 0:28:26All right, I'll hold you to that.
0:28:26 > 0:28:29How did he get on?
0:28:29 > 0:28:31We have spent a bit more, about 13,000
0:28:31 > 0:28:35A lot of that has been on tools and ladders and stuff, which I will reuse.
0:28:35 > 0:28:42I had to buy new drills, new sanders and also we had to pay a lot of labour, which I wasn't anticipating.
0:28:42 > 0:28:48I managed to do my back in putting a ceiling in the bathroom so I had to employ some labourers to help there.
0:28:48 > 0:28:52We also didn't anticipate rewiring and replastering.
0:28:52 > 0:28:55A sore back? Excuses, excuses!
0:28:55 > 0:28:57That'll be a tenner, please, Gareth.
0:28:57 > 0:29:02In fairness, though, he still came in eight grand under the experts estimated price. So, not bad!
0:29:02 > 0:29:08They bought it to let out and paid 152,000 at auction for it.
0:29:08 > 0:29:14The plan is to rent it for about £1,000, but the rental market has dipped in recent years in the area.
0:29:16 > 0:29:21What do two experts make of the renovation work and the property's potential on the current market?
0:29:25 > 0:29:28My impressions when I came here today is very, very well done.
0:29:28 > 0:29:30I'm well impressed.
0:29:32 > 0:29:38The standard of the work is very good. It's acceptable for the area, it's acceptable for the property.
0:29:38 > 0:29:40It's clean, tidy. They've thought about the decoration.
0:29:40 > 0:29:43It's white, which makes it look a little bit larger.
0:29:43 > 0:29:44The bathrooms and the kitchen are modern.
0:29:44 > 0:29:49They've done a good job. I wouldn't have said they've overspent on it, but they've done a good job.
0:29:49 > 0:29:51So thumbs up all round.
0:29:51 > 0:29:55How much do they think Gareth and Sarah could rent it out for?
0:29:56 > 0:30:03I'd put this property on the rental market, per calendar month, at between £950 and £975.
0:30:03 > 0:30:08I would put this on the rental market for 850 to £900 per calendar month.
0:30:08 > 0:30:12So that's anywhere between a 6% and 9% yield, a good return for their money.
0:30:12 > 0:30:14Are they pleased?
0:30:15 > 0:30:17I actually thought it'd be a bit more than that.
0:30:17 > 0:30:19It's nice, it's encouraging.
0:30:19 > 0:30:25It more than puts us in the area where we wanted to be, around 900, so... That's really good.
0:30:25 > 0:30:31With the work on top, the property has cost Gareth and Sarah 164,000.
0:30:31 > 0:30:35If they decide to sell further down the line, what could they expect to make back?
0:30:35 > 0:30:40I'd put this property on the resale market for £185,000.
0:30:40 > 0:30:44I'd put this on the resale market for approximately £200,000.
0:30:44 > 0:30:46Oh...
0:30:46 > 0:30:48It's about what we were expecting.
0:30:48 > 0:30:51We were hoping for roundabout the 200, so... That's really good.
0:30:51 > 0:30:54Yeah, that's excellent. Thank you!
0:30:54 > 0:30:58That's a great profit of 35,000!
0:30:58 > 0:31:00I think this pair are really switched on when it comes to property investment.
0:31:00 > 0:31:04How did they find this, their first experience?
0:31:04 > 0:31:07It's been stressful at times. It's been a challenge.
0:31:07 > 0:31:11I've enjoyed it and I guess we'll probably do it again.
0:31:11 > 0:31:16I've been in the meat trade most of my life and I've had good fun enough but I enjoy this more now.
0:31:16 > 0:31:19It's a new challenge and it's something completely different every day.
0:31:19 > 0:31:22I might try and stick with this if I can make any money out of it.
0:31:22 > 0:31:28And with Gareth's great buying skills I'm sure he'll easily make the leap from meat to mortar!
0:31:31 > 0:31:35Back in the summer of 2007, I took a trip to Dorset
0:31:35 > 0:31:41and the quiet hamlet of Huntingford to see a property the likes of which I hadn't seen up for auction before.
0:31:41 > 0:31:47I've looked inside an old candle factory, a public toilet and a baker's shop!
0:31:47 > 0:31:50I have to admit, this, is my first chapel.
0:31:50 > 0:31:55Look at it. Ripe for development.
0:31:55 > 0:31:59For years the church has been the centre of this small community.
0:31:59 > 0:32:01Local worshippers used to walk here every Sunday
0:32:01 > 0:32:07but a dwindling congregation meant it was closed down a few years ago.
0:32:09 > 0:32:15This chapel was built in 1867 by a well-known local builder, William Coward.
0:32:15 > 0:32:22He built this chapel in sections in his workshop and he brought it here and bolted it all together.
0:32:22 > 0:32:26The idea was that it could be easily dismantled and relocated, if necessary.
0:32:26 > 0:32:32140 years later, it's certainly stood the test of time pretty well.
0:32:32 > 0:32:36Although, I think the floor down there has seen better days.
0:32:36 > 0:32:41There maybe rotten floorboards everywhere but that doesn't seem to worry some of the residents.
0:32:41 > 0:32:43You can see why.
0:32:43 > 0:32:45It's certainly a vast space.
0:32:45 > 0:32:51With so much light coming through the windows, just imagine how you could transform it.
0:32:51 > 0:32:57The chapel is charming and an heaven sent opportunity for someone but there are some downsides.
0:32:59 > 0:33:04Wooden structures are notoriously difficult to get mortgages on.
0:33:04 > 0:33:09You're not just going to be able to just walk into an average High Street bank and negotiate a deal.
0:33:09 > 0:33:13However, there are some specialist lenders who will give you the money.
0:33:13 > 0:33:18Be warned, you might not be able to get such a good rate because it's built of wood rather than brick.
0:33:18 > 0:33:22It's certainly worth shopping around and I think you should bargain for
0:33:22 > 0:33:24spending a little more on mortgage repayments.
0:33:24 > 0:33:28The chapel went to auction at a guide price of 50,000.
0:33:28 > 0:33:32After they sorted the mortgage, the new owner will have to make
0:33:32 > 0:33:35a decision about what they're going to do with it.
0:33:35 > 0:33:38In the past this chapel has been used as a workshop,
0:33:38 > 0:33:46a farm shop selling local produce, an antique shop and most recently it's just been used for storage.
0:33:46 > 0:33:49I think this could make a wonderful home.
0:33:49 > 0:33:52You could putting a mezzanine level with a bedroom up there.
0:33:52 > 0:33:57However, there aren't any services like gas and water installed.
0:33:57 > 0:34:00This is going to cost around £500 to £600 to do
0:34:00 > 0:34:06which pales into insignificance really when I tell you that to turn this place into a home, I think,
0:34:06 > 0:34:10you're going to need a hefty budget and the local council on your side.
0:34:10 > 0:34:14At a conservative estimate, you may need to spend £60,000 here,
0:34:14 > 0:34:18which is more than the guide price was to buy it!
0:34:18 > 0:34:21A local expert reckons the chances of it being turned into a full-time
0:34:21 > 0:34:25residential property are very slim indeed.
0:34:25 > 0:34:27However, there might be a chance.
0:34:27 > 0:34:33It could be made into a holiday let, which would be an exciting option but there are no guarantees.
0:34:35 > 0:34:42So this pale, wooden chapel could turn into a white elephant if you're not very careful.
0:34:45 > 0:34:51This chapel certainly needs some divine intervention to stop it crumbling away.
0:34:51 > 0:34:55The big question is... What is somebody going to do with it?
0:34:55 > 0:34:57Let's go to auction and find out.
0:34:57 > 0:35:03Right, our final lot of the morning, the chapel at Huntingford.
0:35:03 > 0:35:06Believed to be the first time that this has been on the market.
0:35:06 > 0:35:08So, what a chance for you.
0:35:08 > 0:35:11Our guide is £50,000.
0:35:11 > 0:35:13Would someone like to put me straight in at 50,000?
0:35:13 > 0:35:1550?
0:35:15 > 0:35:1840? 40,000 thank you.
0:35:18 > 0:35:20At 40,000 seated at the back.
0:35:20 > 0:35:25At 40,000. At £40,000... 42, 44.
0:35:25 > 0:35:2946, 48.
0:35:29 > 0:35:30At 48,000.
0:35:30 > 0:35:3348,000, right at the back.
0:35:33 > 0:35:35At 48,000.
0:35:35 > 0:35:3648,000... All done and sure then?
0:35:36 > 0:35:39At £48,000.
0:35:39 > 0:35:4350,000. 50,000...
0:35:43 > 0:35:46In the stalls at 50,000.
0:35:46 > 0:35:48All done and sure? Are you bidding or just scratching?
0:35:48 > 0:35:50Just scratching, sorry.
0:35:54 > 0:35:56Oh, dangerous! £50,000... In the stalls.
0:35:56 > 0:36:00All done and sure then? At £50,000!
0:36:00 > 0:36:05Congratulations, sir, at £50,000. Thank you.
0:36:09 > 0:36:12For the exact guide price of £50,000, John and his wife, Jenny,
0:36:12 > 0:36:16are the new owners of the old chapel.
0:36:16 > 0:36:21John runs an agricultural company and Jenny does the secretarial work.
0:36:21 > 0:36:25I met up with them to find out why they wanted to buy it?
0:36:25 > 0:36:27John and Jenny, this is such an unusual auction lot.
0:36:27 > 0:36:32I absolutely love it. What attracted you to the place?
0:36:32 > 0:36:34It's got history.
0:36:34 > 0:36:36It's got character. It's a challenge.
0:36:36 > 0:36:39It's a landmark.
0:36:39 > 0:36:42It's a landmark in the hamlet.
0:36:42 > 0:36:44Are you guys local?
0:36:44 > 0:36:46Well, funny you should say that because we live just over there.
0:36:46 > 0:36:48The cottage behind?
0:36:48 > 0:36:51- Great! Well, shall we get the kettle on and have a cuppa.- We can do that.
0:36:51 > 0:36:53You can certainly have a cup of tea.
0:36:53 > 0:36:55Let's do that, let's go in.
0:36:55 > 0:36:59John and Jenny have lived in Huntingford for the last eight years.
0:36:59 > 0:37:03The chance of a cuppa at their house, with no risk of falling through the floor in the chapel
0:37:03 > 0:37:08seemed too good to miss, especially as Jenny makes wedding cakes in her spare time.
0:37:08 > 0:37:11John and Jenny, thank you very much for the tea.
0:37:11 > 0:37:14- A pleasure!- Much needed...
0:37:14 > 0:37:19So you've spent £50,000 on a beautiful, wooden chapel.
0:37:19 > 0:37:21What are you actually going to do with it?
0:37:21 > 0:37:25We hoped to make it into a holiday let and to restore it.
0:37:25 > 0:37:28The first thing is to clear the land, isn't it?
0:37:28 > 0:37:31Clean the land and stabilise the building so it can weather the winter.
0:37:31 > 0:37:37The intention is to convert it to a holiday let with a mezzanine floor...
0:37:37 > 0:37:41Yeah, one big room with the kitchen and shower room at the back of the
0:37:41 > 0:37:46property and the mezzanine floor, so you've got a bedroom upstairs.
0:37:46 > 0:37:52The intention is to try and keep the walls as they are with the insulation between the two wooden panels.
0:37:52 > 0:37:55Insulate the roof, the floor will have to be ripped out.
0:37:55 > 0:37:59The brick plinth at the bottom has got to be renewed.
0:37:59 > 0:38:01It's quite a project. It will be done.
0:38:05 > 0:38:07John and Jenny certainly have a steely determination to complete
0:38:07 > 0:38:13this project but they may have to dig deep to fund this conversion.
0:38:13 > 0:38:18How much money do you think it's going to take to bring this up to
0:38:18 > 0:38:22- such a standard that you can call it a holiday home?- 30 to 50,000.
0:38:22 > 0:38:26- Are you worried that it might spiral out of control?- It won't!
0:38:26 > 0:38:29- He's the control man.- It won't!
0:38:29 > 0:38:32- Why? Tell me why it won't? - Because I'll keep
0:38:32 > 0:38:36an eye on costs. We'll work to a budget and once the
0:38:36 > 0:38:41chippies start work on it, then it will be done to a timescale as well.
0:38:41 > 0:38:43You see, Jenny, I believe everything he says.
0:38:43 > 0:38:45What is he like to work for?
0:38:45 > 0:38:49Erm, can be a bit of a controller, can't you, darling?
0:38:49 > 0:38:52No! I'm a pussycat.
0:38:54 > 0:38:59John's bark might be worse than his bite but he does love the countryside.
0:38:59 > 0:39:03He's happy for work to start only when nature sees fit.
0:39:03 > 0:39:06I notice that you've got some residents in there already.
0:39:06 > 0:39:08- A couple of swallows. - Yeah, they're lovely, aren't they?
0:39:08 > 0:39:11What are you gonna do about that?
0:39:11 > 0:39:14- We can't start till they've fledged and gone.- No.
0:39:14 > 0:39:16Once they migrate, we'll start.
0:39:16 > 0:39:19We've had house martins in the past here and you have to
0:39:19 > 0:39:23schedule everything round them because they're precious.
0:39:23 > 0:39:24So when the swallows fly,
0:39:24 > 0:39:27the building flies.
0:39:27 > 0:39:30Well, that was back in 2007.
0:39:30 > 0:39:35When the swallows did finally leave the nest in the autumn, little did John and Jenny know,
0:39:35 > 0:39:42it would be nearly two years later and lots of ups and downs and scary moments, before they could return.
0:39:42 > 0:39:45Join us later to find out how they've turned the project round
0:39:45 > 0:39:48after their dreams came crashing down.
0:39:54 > 0:39:57Well, we've given them a while, but was it long enough?
0:39:57 > 0:40:05- Will we return to super stories of success, or stress and spiralling budgets?- Let's find out.
0:40:06 > 0:40:11Back in Scotland, this neat and tidy two-bedroomed ground floor flat
0:40:11 > 0:40:17sold at auction for £57,500 - £12,500 over the guide price.
0:40:17 > 0:40:22It was bought by the parents of Laura who has lived in the area all of her life.
0:40:22 > 0:40:26She oversees the property management side of the family business
0:40:26 > 0:40:29and she told me about her plans for the place.
0:40:29 > 0:40:34A quick spruce up and there's nothing structurally needs doing to it.
0:40:34 > 0:40:37The flat was only five years old and it was in great condition.
0:40:37 > 0:40:40It just needed a little love and attention to spruce it up.
0:40:40 > 0:40:45So we caught up with Laura to find out exactly what she'd done to it.
0:40:51 > 0:40:56We had to paint all the walls, put new flooring down, fill in some holes where things had
0:40:56 > 0:41:00been hung in the wall, but really it was just cosmetic.
0:41:00 > 0:41:03And what a cracking job it is.
0:41:03 > 0:41:07I'll do my best. I'll do my best to do the best I can...
0:41:07 > 0:41:11Everything is just as bright and fresh and if it was just brand new.
0:41:11 > 0:41:16In the bedroom that dated shag pile is gone, replaced by some smart,
0:41:16 > 0:41:19wooden laminate and Laura didn't stop there.
0:41:19 > 0:41:21When I initially bought the flat most
0:41:21 > 0:41:25of it was done in laminate flooring which we were anticipating leaving.
0:41:25 > 0:41:31However, when we were starting to measure up for doing the rooms
0:41:31 > 0:41:35that had the carpet, we decided that we would just strip the whole flat.
0:41:40 > 0:41:44So we've waved goodbye to the tired, worn and mismatched flooring
0:41:44 > 0:41:48and said hello to high quality laminate throughout.
0:41:50 > 0:41:54On top of that, the bathroom has been decluttered.
0:41:54 > 0:41:59Even though the glittery toilet seat has been replaced, the bathroom still sparkles.
0:42:06 > 0:42:12It wasn't all as easy as planned though, one repair in particular saw the renovation come a little unstuck.
0:42:14 > 0:42:19There had been beaded glued all around the skirting boards, which we had to take off
0:42:19 > 0:42:22and then resand the skirting boards and repaint all of those.
0:42:22 > 0:42:28I would say that it added quite a considerable length of time onto the renovation works.
0:42:28 > 0:42:32And with all that new laminate flooring, the cost spiralled as well.
0:42:34 > 0:42:41Laura's original budget was £750, but the final outlay was £1,100.
0:42:41 > 0:42:44Even though it cost more, Laura proved what a bright spark she is.
0:42:44 > 0:42:49She rallied the whole family round to do the renovation work for free.
0:42:53 > 0:42:58My dad's he an electrician to trade, so he could do any of the electrical work and most of the painting.
0:42:58 > 0:43:04Once all the painting was finished mum and I then came in and cleaned all the flat.
0:43:04 > 0:43:10My cousins he also came in to help my dad with the electrical side of things.
0:43:10 > 0:43:12Being able to do it alongside my family.
0:43:12 > 0:43:18It's nice, there is the odd arguments but we all agree in the end.
0:43:18 > 0:43:21There's compromise, everybody's got their own ideas.
0:43:21 > 0:43:26However, it definitely makes things easier when it's a family project.
0:43:29 > 0:43:35And what a good job they did on everything. Well, almost everything.
0:43:35 > 0:43:40I would say the only thing still left to do is the door handle.
0:43:40 > 0:43:44We've still got to renew that, I'm just waiting on getting the door handle in.
0:43:44 > 0:43:52OK, so that'll be sorted then. But there is one thing they've changed that I definitely don't agree with.
0:43:58 > 0:44:03Yeah, in the living room there was a touch sensitive dimmer switch.
0:44:03 > 0:44:05It frustrated me greatly because I couldn't get it to work.
0:44:05 > 0:44:10There was no question, that was going to get changed to a normal switch.
0:44:10 > 0:44:11Unbelievable!
0:44:11 > 0:44:15I certainly take a dim view of that attitude.
0:44:15 > 0:44:16Oh, well, there's no accounting for taste.
0:44:16 > 0:44:23We invited two local estate agents along to see what do they think of all Laura and her family's hard work.
0:44:29 > 0:44:31It's lovely, fresh and clean.
0:44:31 > 0:44:34The white maximises light.
0:44:34 > 0:44:36It makes the place look much larger.
0:44:36 > 0:44:37They've replaced the flooring.
0:44:37 > 0:44:39It looks fantastic.
0:44:39 > 0:44:42The decor isn't the only thing of note in the flat.
0:44:42 > 0:44:45The location is also very appealing.
0:44:48 > 0:44:52I particularly like that the property is situated close to the town centre.
0:44:52 > 0:44:56Easy access for people who are relying on public transport.
0:44:56 > 0:44:59I think it suits a variety of different purchasers.
0:44:59 > 0:45:02But Laura's planning to rent the flat.
0:45:02 > 0:45:07To get people in through the door, she's gonna rent it for £380 per calendar month.
0:45:07 > 0:45:09What do the experts think of that?
0:45:12 > 0:45:19On the rental market, unfurnished I would put this property on the market at £395 a calendar month.
0:45:19 > 0:45:23At that price it looks like Laura won't get that sinking feeling.
0:45:23 > 0:45:27She's pretty much spot on, or is she?
0:45:27 > 0:45:37This property, I would put on the rental market at around £450 to £475 per calendar month.
0:45:37 > 0:45:39Wow, very different.
0:45:39 > 0:45:43One of them I would have said is spot on with the ideas we've had.
0:45:43 > 0:45:50We had initially thought 380 but when we've seen the flat finished, we upped it to 390.
0:45:50 > 0:45:55The one that was higher than that obviously is considerably higher.
0:45:55 > 0:46:00I'm not sure, given the area that we could attain that but they're
0:46:00 > 0:46:03the professionals so it's nice to know that.
0:46:03 > 0:46:08It sounds like Laura's confidence in her pricing is as firm as that new floor.
0:46:08 > 0:46:12If she were to sell in the future, what would the experts expect it to go for?
0:46:14 > 0:46:21To achieve a quick sale, I would put this property on the retail market for £65,000.
0:46:21 > 0:46:27In it's current state, I would put this property on the resale market for offers around £63,000.
0:46:27 > 0:46:31I'm slightly disappointed at that, I must admit.
0:46:31 > 0:46:36There are two other flats, the same builder, about 100 yards
0:46:36 > 0:46:43from here and both of those flats, with different estate agents, are both on at a fixed price of 80,000.
0:46:43 > 0:46:48So that's a big difference from what they're saying this one's valued.
0:46:48 > 0:46:52I know this one doesn't have as good a location,
0:46:52 > 0:46:55but I still would have anticipated slightly about 70.
0:46:57 > 0:47:02Laura's sure she will see a healthy profit in the future.
0:47:02 > 0:47:05She hopes her local knowledge will keep her plans from coming off the rails.
0:47:09 > 0:47:15And she hopes to add one new property to her portfolio each year.
0:47:15 > 0:47:22We're keeping the portfolio reasonably small so that we are able to manage it within the family.
0:47:22 > 0:47:26We're all enjoying it. So, roll on the next one.
0:47:26 > 0:47:33Laura's landed herself a real deal with this flat, certainly more real than those flowers.
0:47:36 > 0:47:42It was 2007 when I first visited the Dorset hamlet of Huntingford
0:47:42 > 0:47:46to see a derelict wooden chapel built in 1867.
0:47:46 > 0:47:50Although it was a local landmark, it had been neglected for many years.
0:47:50 > 0:47:55Then Jenny and John, who lived in the house opposite, decided to take it under their wing.
0:47:55 > 0:48:00They bought it at auction for 50,000 hoping to turn it into a one-bed holiday cottage
0:48:00 > 0:48:03but when we returned a year later, all wasn't going quite to plan.
0:48:03 > 0:48:07The first job was to get the ground cleared.
0:48:07 > 0:48:12Following that we then got the team in to start renovating the building.
0:48:12 > 0:48:14They took the tin roof off.
0:48:14 > 0:48:19And as they lifted the roof off, the front end came inwards,
0:48:19 > 0:48:23the sides when out and the back gave up the ghost.
0:48:23 > 0:48:25The whole thing came down.
0:48:36 > 0:48:43So having stood for over 140 years, it took just one afternoon for Jenny and John to see their
0:48:43 > 0:48:47dream of turning the chapel into a holiday home come crashing down.
0:48:47 > 0:48:52Now another year later we're back with Jenny and John and their
0:48:52 > 0:48:57architect, Peter, to see if they've successfully resurrected the place.
0:49:01 > 0:49:05Hurray! At last, Huntingford has it's old chapel building back again.
0:49:05 > 0:49:10I remember when it fell down and we had to start again and
0:49:10 > 0:49:14building regs were quite aggressive with what their demands were.
0:49:14 > 0:49:17I was absolutely terrified.
0:49:17 > 0:49:21Although deemed a new build, it was also considered a restoration
0:49:21 > 0:49:25so the building had to look similar to the old one but also meet modern standards.
0:49:25 > 0:49:29I have to say I was intimidated by it and quite worried and frightened.
0:49:29 > 0:49:32But it got to a stage where they weren't going to beat us.
0:49:32 > 0:49:38From the outside, it appears that through sheer determination Jenny and John have not only
0:49:38 > 0:49:45put the chapel back on site, but a newer, stronger version that should be good for another 140 years.
0:49:47 > 0:49:49What we see here is the finished chapel.
0:49:49 > 0:49:55As it is, unfortunately, everything here is new apart from the doors, which are original.
0:49:55 > 0:49:57Inside and outside doors.
0:49:57 > 0:50:04We weren't really able to save any of the old building other than that cost effectively.
0:50:04 > 0:50:08It stands on exactly the same footprint as when we bought it,
0:50:08 > 0:50:13apart from the extension, which is where the old tin shed was.
0:50:13 > 0:50:18Large time you were here all we had to show you was a concrete raft and a load of rubbish.
0:50:18 > 0:50:22Now, hopefully, this is a little different.
0:50:22 > 0:50:26Remember that old, shabby, rotten interior?
0:50:26 > 0:50:29Well, just take a look at it now.
0:50:42 > 0:50:49Off the fantastic mezzanine level, there is the only bedroom and below are the kitchen and bathroom.
0:50:49 > 0:50:55Hallelujah... Hallelujah...
0:51:02 > 0:51:08My heart did sink at the auction when my husband waved his hand and we bought it.
0:51:08 > 0:51:12Little did we know it was going to involve so much.
0:51:12 > 0:51:14It's been fun.
0:51:14 > 0:51:16It's been a challenge.
0:51:16 > 0:51:18We had a good team of guys working on the place.
0:51:18 > 0:51:21A lot of the time it took a lot of my life.
0:51:21 > 0:51:27Trying to project manage with a full-time business as well was difficult.
0:51:27 > 0:51:30So my project manager, namely Jenny,
0:51:30 > 0:51:32had a lot of the work to do and she was good at it.
0:51:32 > 0:51:37I found it very interesting and a very steep learning curve.
0:51:37 > 0:51:40I just wished we started with something simpler.
0:51:41 > 0:51:43# I gotta have faith faith, faith... #
0:51:43 > 0:51:50So John put his faith in Jenny to be the site manager while he continued to run his agricultural company.
0:51:50 > 0:51:53She in turn put her faith in their architect, Peter,
0:51:53 > 0:51:55who had to sort out all the complicate compliance issues.
0:51:55 > 0:52:01The biggest challenge on this job, really, was the fact that it was classified
0:52:01 > 0:52:07by the building controllers as a new building, and that meant we had to achieve very
0:52:07 > 0:52:11high levels of thermal insulation, which was really, really difficult.
0:52:11 > 0:52:14We've got very thin walls. We had to put them back with the same
0:52:14 > 0:52:17thickness, otherwise the building wouldn't have been the same.
0:52:17 > 0:52:22The planning department were very happy to understand our idea of doing
0:52:22 > 0:52:29a demolition and then a rebuild as a conservation exercise but the building inspectorate was not.
0:52:29 > 0:52:35They wanted modern standards for a new building and that really presented a lot of problems.
0:52:35 > 0:52:40We did get over them all but not without some effort and some cost.
0:52:40 > 0:52:43As very few of the original fixtures and fittings were usable
0:52:43 > 0:52:47exact replacements of the old design had to be hand made.
0:52:47 > 0:52:52John and Jenny's £60,000 budget was never going to be enough.
0:52:52 > 0:52:57The budget has been blown clean out of the water by about 50%. I think
0:52:57 > 0:53:04I made a comment in the interim period that I would keep a tight eye on the budget. Well, I have done.
0:53:04 > 0:53:07But, it's about 60K over budget.
0:53:07 > 0:53:09Do I care? No.
0:53:09 > 0:53:13It's a better investment than putting money into ISAs.
0:53:13 > 0:53:17Well, it might have been expensive but they wanted to restore this local landmark.
0:53:17 > 0:53:22Not quite at all costs, but they saw it as an asset to both their property and the hamlet.
0:53:22 > 0:53:27When we'd finished it was ours and we didn't want to let it.
0:53:27 > 0:53:32I think if we were honest about our emotional feelings, it sounds a bit corny.
0:53:32 > 0:53:39It's so much part of our creation and we had felt that it was part of us.
0:53:39 > 0:53:42We were a little bit loathe to let other people come in, really.
0:53:42 > 0:53:48It is a business. It's got to be a business and therefore we took a time to adjust to that.
0:53:48 > 0:53:50I think we have now. And, it's still here.
0:53:50 > 0:53:52We can still come in and see it.
0:53:52 > 0:53:54It's not as if we've sold it and moved it on.
0:53:54 > 0:53:59In the end they spent a whopping £140,000.
0:53:59 > 0:54:03So, including the original 50,000, it cost them at auction,
0:54:03 > 0:54:08plus expenses, they won't see much change from £200,000.
0:54:08 > 0:54:12But resurrecting the chapel was both a labour of love and a pension plan.
0:54:12 > 0:54:15So, how would it fare in the current market?
0:54:15 > 0:54:21My first impressions of this building is one of a very clever reconstruction and renovation
0:54:21 > 0:54:24that's maintained the inherent charm of the original building.
0:54:24 > 0:54:28It's unique, it's been built from scratch
0:54:28 > 0:54:36to replicate the original and that is a selling feature when it comes to marketing it for the holiday let.
0:54:36 > 0:54:39The interior works very nicely because the panelling matches the
0:54:39 > 0:54:44original feel of the property and suits the charm of the area as well.
0:54:44 > 0:54:50Though they intend to rent this out for holiday lets would their hard work and persistence pay off
0:54:50 > 0:54:53if they were to sell their investment of nearly 200,000.
0:54:53 > 0:54:55If this property be launched on the open market
0:54:55 > 0:54:59today, I would envisage a figure in the region of about £150,000.
0:54:59 > 0:55:04I would expect the property to achieve somewhere in the region of
0:55:04 > 0:55:10£130,000 to £135,000 and I've probably market it around £140,000.
0:55:10 > 0:55:14Well, that leaves us with a considerable loss on the
0:55:14 > 0:55:17face of things at the moment but the property market has gone down.
0:55:17 > 0:55:22The way we looked at it, I think, was that we lumped the value of
0:55:22 > 0:55:27this in with what we paid for the cottage and did the sums that way.
0:55:27 > 0:55:29It's something we wanted to do.
0:55:29 > 0:55:31And, we've done it.
0:55:31 > 0:55:35So currently they may be looking at a loss of 50 to 60,000 but this was
0:55:35 > 0:55:40always a long-term investment aimed at the holiday market.
0:55:40 > 0:55:49High season, I'd expect rental to be within the order of £450 a week and low season around £215, £220 a week.
0:55:49 > 0:55:52For holiday rentals, I think we'd be looking
0:55:52 > 0:55:58at £200, the low season and to £450 in the high season per week.
0:55:58 > 0:56:03If we reckon on a 20-week occupancy, that could net around 6,000 to 8,000 a year,
0:56:03 > 0:56:07which isn't a bad way of topping up a pension fund.
0:56:07 > 0:56:09How do they feel about it now?
0:56:09 > 0:56:11- Pleased with it.- Pleased with it.
0:56:11 > 0:56:14Happy with it. I like it, actually, because it's different.
0:56:14 > 0:56:16I like different things.
0:56:16 > 0:56:19We could have invested the money in pictures.
0:56:21 > 0:56:24We could have done some gambling and got rid of it that way as well.
0:56:24 > 0:56:26Life is a roller-coaster, just gotta ride it...
0:56:32 > 0:56:34This has certainly been a roller-coaster for Jenny and John.
0:56:34 > 0:56:40They've had their ups and downs but have ended up on a tremendous high.
0:56:40 > 0:56:45I for one have nothing but praise and admiration for what they've achieved here.
0:56:52 > 0:56:54Well, that's it for today's show.
0:56:54 > 0:56:59Join us next time for more thrills and spills on Homes Under the Hammer.
0:56:59 > 0:57:01- See you then.- Goodbye.- Goodbye.
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