0:00:02 > 0:00:04It's more important than ever to buy
0:00:04 > 0:00:06- at the right price and in the right location.- Yes.
0:00:06 > 0:00:08From two up, two down, terraces,
0:00:08 > 0:00:12to the more unusual and quirky, you can find it all at the auction.
0:00:12 > 0:00:15And, of course, with so much choice the key is to not get too carried
0:00:15 > 0:00:19away when you buy your home under the hammer.
0:00:44 > 0:00:47Buying at auction can be a quick way to purchase property.
0:00:47 > 0:00:51But it's very much a case of buyer beware because when the hammer goes down you
0:00:51 > 0:00:57have exchanged contracts, you can't just change your mind, and you have to come up with the cash pronto.
0:00:57 > 0:01:02So will today's properties be investors' dreams or complete nightmares?
0:01:02 > 0:01:04Let's find out.
0:01:04 > 0:01:10This mid-terrace house in Derby is crammed with original features and space.
0:01:10 > 0:01:14Here you've got the makings of the most wonderful house.
0:01:14 > 0:01:17In Kent, this chalet bungalow looks a great buy
0:01:17 > 0:01:21but the concrete plot out the back is where the real money is.
0:01:21 > 0:01:24We've got ourselves some serious potential.
0:01:24 > 0:01:30And I find a quirky property in Southampton, but there's just one quirk too many.
0:01:30 > 0:01:32Oh, boy oh, boy, what's that?
0:01:36 > 0:01:38All these properties have been sold at auction
0:01:38 > 0:01:43and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:43 > 0:01:45Sold.
0:01:47 > 0:01:52Today I'm just outside Derby city centre in a place called Five Lamps.
0:01:52 > 0:01:57The Five Lamps junction is in a historic residential area
0:01:57 > 0:02:01and I'm hoping it's going to throw some light, ha ha, on our property.
0:02:01 > 0:02:04Well, a short walk from the city centre is the property
0:02:04 > 0:02:08I'm here to see, and it sounds very interesting indeed.
0:02:08 > 0:02:14It's a Victorian mid-terrace, it had a guide price of £90,000, which for a four-bedroom house like this is
0:02:14 > 0:02:20really good going, and this is one where deceptive is a word that springs to mind...
0:02:20 > 0:02:21and I'll show you why.
0:02:24 > 0:02:27From the front it doesn't look too big, does it?
0:02:27 > 0:02:31But you come inside and oh, boy, what a pleasant surprise it is.
0:02:31 > 0:02:34nice hallway there, big front room there which is good to see,
0:02:34 > 0:02:39stairs up to your bedrooms, then continuing down this corridor you've
0:02:39 > 0:02:46got stairs down to the cellar but I'm just wondering if we've got any treats in store under the carpet.
0:02:46 > 0:02:50Oh, wow, look at that.
0:02:50 > 0:02:51It's called a Minton floor.
0:02:51 > 0:02:56Imagine that cleaned up and how fantastic that would be stretching down the hallway,
0:02:56 > 0:03:00The property continues going back.
0:03:00 > 0:03:04You've got a sort of rear sitting room there and then through into this massive kitchen.
0:03:04 > 0:03:08Now, it's a bit, you know, well, horrible really, but put a really nice
0:03:08 > 0:03:12kitchen in here and you've got the makings of a most wonderful house.
0:03:12 > 0:03:17Also on the ground floor, behind the kitchen, is a downstairs bathroom
0:03:17 > 0:03:21that could easily be converted into a utility area.
0:03:21 > 0:03:27Well, up here you've got a bathroom and a loo and a bedroom that way, a large double bedroom there.
0:03:27 > 0:03:30It just sums it up really, the space in this house is fantastic.
0:03:30 > 0:03:36The landing feels lovely and open, helped by these extremely high ceilings.
0:03:36 > 0:03:42Box room there, large double bedroom there, and I think if you wanted to extend the house even more you could
0:03:42 > 0:03:48because I know that there is room in the attic to potentially build even more rooms.
0:03:48 > 0:03:50I mean it is just a fantastic house.
0:03:50 > 0:03:56This truly is a gem of a property and it's not just the space that is selling it,
0:03:56 > 0:04:03it's that solid Victorian construction that's a perennial favourite of buyers everywhere.
0:04:03 > 0:04:06So, big bedrooms, I mean, I love it.
0:04:06 > 0:04:12Nice big windows, lots of light coming in, features, fireplace, just great, get that stripped back.
0:04:12 > 0:04:14But you haven't seen the best thing yet.
0:04:14 > 0:04:18How about that for a wall of wallpaper?
0:04:18 > 0:04:21It's blooming marvellous.
0:04:21 > 0:04:28And on the subject of flowers, out back there's a good-size garden that wouldn't really take long to tame.
0:04:33 > 0:04:36To get an idea of what the property might be worth
0:04:36 > 0:04:40I invited along the auctioneer that sold it to hear his opinion.
0:04:42 > 0:04:44It's a lovely house. Super.
0:04:44 > 0:04:46Exactly what you'd want from
0:04:46 > 0:04:49an old terraced house, it's still got some of its character in it.
0:04:49 > 0:04:52Nice feel to it, nice appeal, I like it.
0:04:52 > 0:04:59If you want to make it a very nice house, beyond what it is now, then you finish up spending 20,000 on it.
0:04:59 > 0:05:04So, let's talk figures. How much could someone make here?
0:05:04 > 0:05:08Once renovated, and assuming a reasonably good standard,
0:05:08 > 0:05:14I think on today's market it would probably have a ceiling value of about £150,000 to £155,000.
0:05:14 > 0:05:22On a single family let I would say you're rental income would be about £550 to £575 a calendar month.
0:05:26 > 0:05:30Well, it's a lot of house for that £90,000 guide price.
0:05:30 > 0:05:35It would make a lovely family home or a perfect rental machine.
0:05:35 > 0:05:38Lots of options. Let's see who went for it at the auction.
0:05:41 > 0:05:46Lot 78. How much can I say for this one? Start me where you like. 90?
0:05:46 > 0:05:49Put it in. 90 I have, thank you. At £90,000 opening bid.
0:05:49 > 0:05:5595, 95, 100, 105.
0:05:55 > 0:05:58105, 106? 105 and a half.
0:05:58 > 0:06:03106? 106. 107 and a half, 108 is bid.
0:06:03 > 0:06:05108,500.
0:06:05 > 0:06:11109. 109,500. 111. No?
0:06:11 > 0:06:14£111,000. 500 somewhere else?
0:06:14 > 0:06:19At £111,000, 500, 12, 114.
0:06:21 > 0:06:25114,500. 115.
0:06:25 > 0:06:27115,500. 116.
0:06:27 > 0:06:33116,500. 120? 120, 120 and a half,
0:06:33 > 0:06:3821, and a half, 22,
0:06:38 > 0:06:41and a half, 23,
0:06:41 > 0:06:44123 and a half, 124.
0:06:44 > 0:06:47124,000. 500, sir?
0:06:47 > 0:06:51500, £125,000.
0:06:51 > 0:06:56No? £125,000 then. 25 and a half.
0:06:56 > 0:07:0026, and a half, 27, 127 and a half,
0:07:00 > 0:07:07128, 128 five, 129, 129 five, 130.
0:07:07 > 0:07:09130,000 against you. No?
0:07:09 > 0:07:14130,000 then, once, twice, third time.
0:07:14 > 0:07:16Sold at 130. Thank you.
0:07:19 > 0:07:23After all that to-ing and fro-ing the property was eventually bought
0:07:23 > 0:07:28for £130,000 by Tom, a local businessman.
0:07:28 > 0:07:33He paid a hefty £40,000 over the guide price to get it.
0:07:33 > 0:07:34- Tom, lovely to meet you.- You too.
0:07:34 > 0:07:37- Good house.- Thank you.
0:07:37 > 0:07:38So tell me why you wanted to buy it.
0:07:38 > 0:07:44Well, to be honest with you, I had a bit of spare money knocking about and the bank interest
0:07:44 > 0:07:47rates are pretty rubbish so I thought the best thing was put it in property.
0:07:47 > 0:07:49have you had any experience of property?
0:07:49 > 0:07:56Well, I bought a house with my brother about two years ago and I rent out rooms there as well.
0:07:56 > 0:08:00That kind of went pretty smoothly so I thought I might as well buy another.
0:08:00 > 0:08:01What do you do?
0:08:01 > 0:08:03I run a recruitment business.
0:08:03 > 0:08:07- Oh.- In Derby. We specialise in construction so I thought the two might
0:08:07 > 0:08:12marry quite nicely as well because I know the local tradesmen who can do the work.
0:08:12 > 0:08:16For any would-be developer connections are all-important.
0:08:16 > 0:08:20# Make sure you're connected, the writing's on the wall... #
0:08:20 > 0:08:23What was it about this particular house...?
0:08:23 > 0:08:26Well, I've always grown up in Victorian period properties
0:08:26 > 0:08:32and they've got a special place in my heart really. It caught my eye when I came round.
0:08:32 > 0:08:35- It was more of a personal thing? - Yeah, absolutely.
0:08:35 > 0:08:40Although I work in the construction industry, new build houses aren't my cup of tea at all, so I'm actually
0:08:40 > 0:08:44- drawn towards this kind of property. - So what's the plan for it?
0:08:44 > 0:08:48Well, to be honest with you, I haven't really got any 100% plans.
0:08:48 > 0:08:51I've got a builder teed up who's going to come in and renovate the property,
0:08:51 > 0:08:56and then I'll either rent it out or potentially even more in myself.
0:08:56 > 0:08:59Oh, OK. That widens the variety of potential.
0:08:59 > 0:09:01Yeah, exactly, yeah.
0:09:01 > 0:09:03Yeah, so we'll see how it goes.
0:09:03 > 0:09:07# I just don't know what to do with myself. #
0:09:09 > 0:09:11Tom, the man without a plan.
0:09:11 > 0:09:18But all the same he has clear ideas about what needs to be done to reap the full potential here.
0:09:18 > 0:09:20I think all the horrible wallpaper has to come off,
0:09:20 > 0:09:26obviously all the nasty carpets are coming up, we'll expose the tiles in the hallway.
0:09:26 > 0:09:29Neutral colours, new kitchen, fitted diner in there.
0:09:29 > 0:09:32This will become the living room
0:09:32 > 0:09:37and we'll have a wet room and just renovate the place.
0:09:37 > 0:09:39And outside, are there any plans for that?
0:09:39 > 0:09:41It's all right out there really.
0:09:41 > 0:09:44They've got a few bushes on the go, they've got an
0:09:44 > 0:09:48apple tree coming over the fence, so not a lot to do I think.
0:09:48 > 0:09:53Tom's aiming at a six-to-ten-week renovation, and using his
0:09:53 > 0:09:57connections in the building trade hopes to do it all on a £10,000 budget.
0:09:59 > 0:10:03- So what next for you? - I think for the time being just concentrate on this.
0:10:03 > 0:10:09In an ideal world I'd perhaps like to buy you know a house every year or two, build up a bit of portfolio,
0:10:09 > 0:10:14but I'm in no major rush, my first priority's to the business,
0:10:14 > 0:10:17and this is an accumulation of nest eggs.
0:10:17 > 0:10:19Good, well, congratulations.
0:10:19 > 0:10:20Thank you very much.
0:10:20 > 0:10:24- And we'll either see you or your tenants when we come back! - That's right, yeah.
0:10:24 > 0:10:28Well, Tom's certainly got the contacts to sort this place out but
0:10:28 > 0:10:31it strikes me that he doesn't quite know what he's going to do yet.
0:10:31 > 0:10:34He doesn't know if he's going to live in it, rent it out,
0:10:34 > 0:10:37how much he's going to spend, or his time scale.
0:10:37 > 0:10:42You can find out what on earth happens later on in the show.
0:10:46 > 0:10:50Just outside Maidstone in Kent is the village of Larkfield,
0:10:50 > 0:10:56once an important village due to its courthouse and administrative role in county affairs.
0:10:56 > 0:11:00Now it's popular with commuters.
0:11:00 > 0:11:06Larkfield really grew in the 1970s when the M20 was built right next door, running
0:11:06 > 0:11:12from London down to Dover. But the motorway doesn't seem to have diverted much traffic away though.
0:11:12 > 0:11:15It's still busy and very loud, which is worth
0:11:15 > 0:11:19bearing in mind because this is the property I'm here to see.
0:11:19 > 0:11:23It's a chalet bungalow and it's got a guide of 140,000 to 150,000.
0:11:23 > 0:11:31As it's so near the road and has a front garden that's seen better days it's not exactly oozing curb appeal.
0:11:31 > 0:11:33Let's hope it's better inside.
0:11:33 > 0:11:38This corridor goes on for days, and there's just a succession of rooms.
0:11:38 > 0:11:42You've got a reception room, another reception room, a bedroom, another
0:11:42 > 0:11:46reception room, a bathroom, a toilet and another bedroom.
0:11:46 > 0:11:49I think it's fair to say this place is fairly huge.
0:11:49 > 0:11:53It's certainly that, with two reception rooms, either of
0:11:53 > 0:11:59which could be turned into a dining room or perhaps another bedroom.
0:11:59 > 0:12:04Then there are two decent-size bedrooms plus a separate toilet and bathroom.
0:12:04 > 0:12:08So it's not short of rooms but the layout is rather poor.
0:12:08 > 0:12:13Clearly there is no need for all these individual rooms.
0:12:13 > 0:12:18As an example, the only function this room serves is to house this staircase.
0:12:18 > 0:12:22Now, the kitchen through here is too small, I would definitely take down
0:12:22 > 0:12:25this wall and open up this space, and that is just for starters.
0:12:25 > 0:12:30Several of these rooms down here would benefit from being reorganised.
0:12:30 > 0:12:36So, come on, let's take down these walls, end the separation and really open this place up.
0:12:38 > 0:12:40# Take down these walls... #
0:12:40 > 0:12:43It feels a bit more like a hotel corridor than a bungalow.
0:12:43 > 0:12:50There should be numbers on each door, room 301, 302, it just needs a complete rethink down here.
0:12:50 > 0:12:53# Take down these walls... #
0:12:53 > 0:12:56I can't help feeling that the upstairs floor with its two
0:12:56 > 0:13:00bedrooms isn't utilising the space as well it could either.
0:13:00 > 0:13:06But if you think there's scope to improve inside, well, wait until you get outside.
0:13:06 > 0:13:12So, traditional bungalow, lots of rooms, nothing crazy about that, and outside you'll be expecting
0:13:12 > 0:13:15maybe a lawn, a patio, some dahlias perhaps.
0:13:15 > 0:13:20Well, what you get is this, more concrete than cultivation.
0:13:20 > 0:13:25Talk about a concrete jungle, this feels more like a piece of wasteland than a garden.
0:13:25 > 0:13:28Or should that be land going to waste?
0:13:28 > 0:13:33With those old garages at the bottom I see development opportunities.
0:13:33 > 0:13:38The easiest thing to do here would be to apply for planning permission for some more garages,
0:13:38 > 0:13:43but with most houses having their own off-road parking I'm not sure that's going to make you a mint.
0:13:43 > 0:13:45So what about another property?
0:13:45 > 0:13:48There's clearly room and as it's a corner plot
0:13:48 > 0:13:52you have a second access point and that is the key.
0:13:52 > 0:13:55If you were to build another bungalow it wouldn't overlook any
0:13:55 > 0:13:58neighbouring properties and there's plenty of demand in the area.
0:13:58 > 0:14:03So there you have it, we've got ourselves some serious potential. How exciting.
0:14:03 > 0:14:06# Hey now, they pave paradise to put up a parking lot... #
0:14:09 > 0:14:13OK, so it's far from paradise and I'd say a parking lot is not the
0:14:13 > 0:14:19best option here, but boy does this look like a developer's paradise.
0:14:19 > 0:14:24A flat area of brownfield land with road access plus the bonus of the bungalow as well.
0:14:24 > 0:14:29But it is still a gamble. What does the local estate agent think?
0:14:33 > 0:14:37In my opinion, best suited on this plot would be another dwelling,
0:14:37 > 0:14:38potentially a bungalow.
0:14:38 > 0:14:43Alternatively, I think a block of flats would be a good idea.
0:14:43 > 0:14:47I do not believe that semi-detached properties would be of benefit at all.
0:14:47 > 0:14:49Interesting.
0:14:49 > 0:14:54I hadn't thought about flats. Which option would maximize the return?
0:14:54 > 0:15:01To build a two-bedroom bungalow on the plot, I would estimate the property to be worth around £175,000.
0:15:01 > 0:15:05If you got planning on the plot for flats I would imagine that you would
0:15:05 > 0:15:10have an estimate price of between £100,000 and £120,000.
0:15:10 > 0:15:16If you got five flats, even with build costs, that could bring in a substantial return.
0:15:16 > 0:15:20On top of that there's a potential profit with the existing bungalow.
0:15:20 > 0:15:23How much would that be worth once done up?
0:15:23 > 0:15:28You would probably look to achieve in and around about £250,000.
0:15:28 > 0:15:35When you consider both the land and bungalow were guided at just 140,000 to 150,000, then the bungalow alone
0:15:35 > 0:15:41could cover your costs, leaving any development at the back as clear profit.
0:15:41 > 0:15:46Well, this bungalow doesn't only hide a wealth of rooms, it also holds a potentially
0:15:46 > 0:15:53valuable opportunity to build a whole separate property and I think that is where the real money lies.
0:15:53 > 0:15:55Let's see who agreed at the auction.
0:15:58 > 0:16:01Over to lot 50 which is a detached chalet bungalow there
0:16:01 > 0:16:02on a good corner plot.
0:16:02 > 0:16:06Potential there for development there as well, subject to planning.
0:16:06 > 0:16:09Start me where you will. £140,000.
0:16:09 > 0:16:11I'm on the way at 140. 140.
0:16:11 > 0:16:14£140,000, I'm on my way at 140.
0:16:14 > 0:16:16140 now. 145, at 145, at 145.
0:16:16 > 0:16:18150. At 150. 50 it's with you.
0:16:18 > 0:16:20And 160 now make it.
0:16:20 > 0:16:23160, it's worth it, 160.
0:16:23 > 0:16:25160, standing in a fresh place.
0:16:25 > 0:16:29170, now make it. 70 I've got, and now £180,000.
0:16:29 > 0:16:30180 I've got.
0:16:30 > 0:16:34And 190, 190, 190. 190 I've got.
0:16:34 > 0:16:39191, 192, 192 and 193,
0:16:39 > 0:16:42193, 193.
0:16:42 > 0:16:47Keep with it, 193. 193, yeah, he says yes. 194.
0:16:47 > 0:16:50At £193,000 you've got, then 94 I'm looking for.
0:16:50 > 0:16:52Are we all done at £193,000?
0:16:52 > 0:16:59If so, for the first time at 193,000, second time at 193,
0:16:59 > 0:17:03third and final time. If you're all done it's going to be sold for 193,000.
0:17:03 > 0:17:07Well done, Sir, it's yours for 193 and that's upside down...
0:17:07 > 0:17:13For 193,000, about 40 to 50 above the guide price, the new owners of
0:17:13 > 0:17:17the bungalow and land are old friends and locals, Mark and Pete.
0:17:17 > 0:17:21They hope this might be the start of a property sideline.
0:17:21 > 0:17:26- Guys, congratulations.- Thank you. - I bet you're thrilled you got this on auction day.
0:17:26 > 0:17:28- Yeah.- Absolutely. - So who saw the potential in this?
0:17:28 > 0:17:31I did, many, many years ago.
0:17:31 > 0:17:33I had a girlfriend not living too far away
0:17:33 > 0:17:35and used to drive around, and you could see,
0:17:35 > 0:17:39- and it just screamed building plot out the back. - Mark, what do you do?
0:17:39 > 0:17:41I'm a bricklaying contractor by trade,
0:17:41 > 0:17:43so I've got lots of blokes work for me.
0:17:43 > 0:17:46But I've been in the building industry most of my life,
0:17:46 > 0:17:47so I feel fairly confident.
0:17:47 > 0:17:51You know, we work for some fairly idiot people and if they can do it,
0:17:51 > 0:17:54then I'm sure me and Pete have a fair crack at it, you know?
0:17:54 > 0:17:58- Pete, what do you do? - I'm an architect, I sit on the other side of the fence.
0:17:58 > 0:18:01I'm the person that Mark would be swearing about on site...
0:18:01 > 0:18:03- and running down, but... - And still will be.
0:18:05 > 0:18:10For some time now, these two mates have considered working together and pooling their complimentary skills.
0:18:10 > 0:18:14Finally, they've found a project that's right for both of them.
0:18:15 > 0:18:19So, Pete, what is it you're going to do to this property to change it?
0:18:19 > 0:18:22Essentially, modernise it without it being over-contemporary.
0:18:22 > 0:18:25It clearly needs a bathroom, it clearly needs a kitchen.
0:18:25 > 0:18:28If we can get a bathroom upstairs as well,
0:18:28 > 0:18:31then that will also, you know, be a very positive factor.
0:18:31 > 0:18:34Perhaps we'll put in large glass French doors off from the kitchen,
0:18:34 > 0:18:36so the place is less focused
0:18:36 > 0:18:38on the front of the house where the noisy road is
0:18:38 > 0:18:41and more at the back where the garden is.
0:18:41 > 0:18:43And that's where your expertise lies.
0:18:43 > 0:18:45- Hopefully, we'll find out.- Yeah.
0:18:45 > 0:18:49So what's the budget for the work in here, just in this bungalow?
0:18:49 > 0:18:51We hope about 30,000, so...
0:18:51 > 0:18:56And it's quite a tight budget and we've bought this, primarily,
0:18:56 > 0:18:58- knowing there's no profit in it.- Mmm.
0:18:58 > 0:19:01The profit's in the back garden where hopefully we'll get planning
0:19:01 > 0:19:03and that's where we'll make our money.
0:19:03 > 0:19:07This seems to be a win-win situation for Mark and Pete.
0:19:07 > 0:19:12They've got the combined skills to modernise the bungalow and maybe make a profit here.
0:19:12 > 0:19:16But their skills will be tested by the plot at the back.
0:19:16 > 0:19:20The plan is... We're still exploring possibles with local agents
0:19:20 > 0:19:23to find out what permutation would yield the best results.
0:19:23 > 0:19:26What we're looking at is a chalet bungalow,
0:19:26 > 0:19:29which the agents were talking about in terms of 200...
0:19:29 > 0:19:34- 200-210, but they all seem to be screaming flats. - Had you not thought of that?
0:19:34 > 0:19:38We considered it, but we did some initial research with agents,
0:19:38 > 0:19:40actually before we went to auction, on it.
0:19:40 > 0:19:45And what we'd concluded, rightly or wrongly, was that a chalet bungalow was the right thing to build.
0:19:45 > 0:19:48However, yeah, it has thrown a slight curve ball
0:19:48 > 0:19:51as now the agents have, sort of, flagged up that, you know,
0:19:51 > 0:19:54potentially, flats would be a better route to go.
0:19:54 > 0:19:57Well, certainly small, sort of, starter-end of the market.
0:19:57 > 0:19:59Tower block it is.
0:19:59 > 0:20:03# The only way is up, baby... #
0:20:03 > 0:20:07Joking aside, we aren't talking tower block.
0:20:07 > 0:20:10More like a two-storey house with, maybe, six apartments.
0:20:10 > 0:20:16It would cost more to build, but could bring in more money, so more profit for them.
0:20:16 > 0:20:20If they couldn't build, would that scupper their business plans together?
0:20:20 > 0:20:23The longer-term goal, if we're honest, this size,
0:20:23 > 0:20:26the nature of this, is not where we see ourselves.
0:20:26 > 0:20:29In my work, I tend to design a lot of high-end residentials
0:20:29 > 0:20:32for wealthy clients who have lovely houses
0:20:32 > 0:20:34and have budgets which reflect that.
0:20:34 > 0:20:37I think longer term that's where we'd like to be,
0:20:37 > 0:20:41- but this is an acorn...- Yeah, got to start somewhere, don't you?
0:20:41 > 0:20:45And, hopefully, our intention isn't really to take the money
0:20:45 > 0:20:48and go and buy a fancy sports car or anything.
0:20:48 > 0:20:50- Buy the sports car in a few year's time.- Hopefully.
0:20:50 > 0:20:54Well, they say the beginning of any race or journey is all-important.
0:20:54 > 0:21:00With Pete and Mark all revved up and raring to go, let's hope the planners give them the green light.
0:21:00 > 0:21:05So Pete and Mark are at the start of a beautiful business relationship,
0:21:05 > 0:21:06or are they?
0:21:06 > 0:21:08What if they don't get their tower block?
0:21:08 > 0:21:10What if the planners say a big "no"?
0:21:10 > 0:21:12Will they get the money they want for this place?
0:21:12 > 0:21:14Will their friendship survive?
0:21:14 > 0:21:17You can find out later on in the show.
0:21:18 > 0:21:20'Coming up, in Southampton,
0:21:20 > 0:21:23'this bungalow may only have one floor,
0:21:23 > 0:21:26'but even that's looking dodgy.'
0:21:26 > 0:21:28Clearly, have this whole place treated.
0:21:29 > 0:21:34We return to Kent to see if working with a mate makes things any easier.
0:21:34 > 0:21:36A few times he's like, "Why don't we do this?"
0:21:36 > 0:21:38And I'm like, "No, why don't we do this?"
0:21:41 > 0:21:46But first, sometimes you CAN just get carried away.
0:21:46 > 0:21:48To be honest, I don't know how much has been spent.
0:21:50 > 0:21:52We're back at Five Lamps in Derby
0:21:52 > 0:21:57where local businessman, Tom, bought this mid-terrace,
0:21:57 > 0:22:00four-bedroom house for £130,000.
0:22:00 > 0:22:03Despite paying £40,000 over the guide price,
0:22:03 > 0:22:07he wasn't quite sure what he wanted to do with it.
0:22:07 > 0:22:08So, what's the plan?
0:22:08 > 0:22:11Well, to be honest with you, I haven't got any 100% plans.
0:22:11 > 0:22:14I'll either rent it out or, potentially, even move in myself.
0:22:16 > 0:22:20It's been five months and though the winter weather's a bit chilly,
0:22:20 > 0:22:24let's hope Tom's renovation is something we'll warm to.
0:22:27 > 0:22:32Tom's restoration programme certainly shows decisive action here -
0:22:32 > 0:22:38the dividing wall's been removed and there's an open-plan area leading through to a new kitchen.
0:22:42 > 0:22:45So when we first bought the house, there was a wall here,
0:22:45 > 0:22:47which we knocked through,
0:22:47 > 0:22:50which creates a much more open-plan space here.
0:22:50 > 0:22:54We had a doorway in here, which we thought we may as well get rid of
0:22:54 > 0:22:58and it just really lends to a continuity right the way through.
0:22:58 > 0:23:02Obviously, it's opened up into a big kitchen which we're pleased with.
0:23:02 > 0:23:05The nature of the shape and size of the room
0:23:05 > 0:23:08meant we were restricted with how to lay out the units,
0:23:08 > 0:23:11but we'd just gone for straight down either side,
0:23:11 > 0:23:14obviously, with the Belfast sink and the granite worktops.
0:23:14 > 0:23:16Really pleased with the ground floor area.
0:23:16 > 0:23:21It's open-plan and it means you can communicate with people regardless of what room they're in.
0:23:21 > 0:23:27Upstairs hasn't undergone such a radical transformation.
0:23:27 > 0:23:32All the bedrooms have been redecorated though, and painted in cool tomes.
0:23:32 > 0:23:38The old fashioned bathroom has been modernised, turning it into a luxurious space.
0:23:40 > 0:23:45It's pretty clear now that Tom has made a decision about who's going to live here.
0:23:45 > 0:23:48Shortly after buying it there was a fair degree of indecision
0:23:48 > 0:23:53about what to do with it, whether to rent it out or to move in myself.
0:23:53 > 0:23:54I decided to move in myself,
0:23:54 > 0:23:57purely because I fell in love with the property
0:23:57 > 0:24:02after a little while of doing it up and that's how I find myself here.
0:24:02 > 0:24:07Tom's made every effort to restore this house to its former glory.
0:24:07 > 0:24:10We replaced all the picture rails, all the coving,
0:24:10 > 0:24:12I put new ceiling roses upstairs and down.
0:24:12 > 0:24:16And we really just tried to get all the original door knobs,
0:24:16 > 0:24:20just restore everything as much as we could to its former glory.
0:24:20 > 0:24:24That included the original floor tiles in the hall,
0:24:24 > 0:24:28which adds a touch of Victorian class to the entrance.
0:24:28 > 0:24:32But on the more practical level, Tom started from scratch
0:24:32 > 0:24:36by re-plastering, re-wiring and re-plumbing the whole house,
0:24:36 > 0:24:38a process not without setbacks.
0:24:39 > 0:24:41The floor was a big thing -
0:24:41 > 0:24:45we had to replace a couple of floor joists,
0:24:45 > 0:24:49we had to treat for rising damp with injections and damp-proof slurry,
0:24:49 > 0:24:55and then, obviously, plaster over the top and get it decorated.
0:24:55 > 0:24:58But it was... You know, it was a fairly big job.
0:24:58 > 0:25:03With the project now complete after five months, Tom's happily settled in with his two cats.
0:25:03 > 0:25:07Even they must be aware of the restoration.
0:25:07 > 0:25:08# What's new pussycat?
0:25:08 > 0:25:11# Whoa-oh whoa-oh whoa oh-oh
0:25:11 > 0:25:12# What's new pussycat?
0:25:12 > 0:25:14# Whoa-oh whoa-oh whoa oh-oh... #
0:25:14 > 0:25:17I think I'm most pleased with the bathroom.
0:25:17 > 0:25:19It is relatively small, but the finish is fantastic -
0:25:19 > 0:25:25we had a great tiler who came in and did some really good work there.
0:25:25 > 0:25:31Equally, downstairs, I think has turned out really, really well.
0:25:31 > 0:25:34Tom has achieved an impressive renovation,
0:25:34 > 0:25:41but even with his connections, I wonder if his original budget was washed down the plug hole.
0:25:41 > 0:25:44When we put the £10,000 budget together,
0:25:44 > 0:25:47that was with a view to renting the property out.
0:25:47 > 0:25:51I haven't got, to be honest with you, I don't know exactly how much
0:25:51 > 0:25:54has been spent on it, but it was probably more like 40 or 50.
0:25:55 > 0:25:57A bit of an overspend there, then.
0:25:57 > 0:26:01When developing, it's important not to get too deeply involved in a property,
0:26:01 > 0:26:05if you spend too much you may lose the shirt off your back.
0:26:05 > 0:26:08But in Tom's case, his new home is his passion.
0:26:08 > 0:26:12So, will this love affair last?
0:26:12 > 0:26:16I'm happy living here for the time being.
0:26:16 > 0:26:19Obviously things change, but for now, you know,
0:26:19 > 0:26:21I like being here and I don't have any plans to sell.
0:26:24 > 0:26:27I'm not surprised, but with the renovation costs at £50,000
0:26:27 > 0:26:33added to his purchase price of 130,000,
0:26:33 > 0:26:37Tom's total spend is around £180,000.
0:26:37 > 0:26:39Time for two local estate agents
0:26:39 > 0:26:42to give their verdict on the restoration.
0:26:43 > 0:26:46First impressions are fantastic, totally bowled over,
0:26:46 > 0:26:47it's a magnificent house.
0:26:47 > 0:26:50You know, the finish and the neutral tones,
0:26:50 > 0:26:53the nice pastels that he's picked are really nice.
0:26:53 > 0:26:55First impressions - the owner's done an excellent job
0:26:55 > 0:26:58of combining the original fabric with the finish that works.
0:26:58 > 0:27:04By making the ground floor more open-plan, it's got a more contemporary feel to it.
0:27:04 > 0:27:07I think this property will sell well, it's got the wow factor.
0:27:07 > 0:27:09As soon as you walk in, you fall in love with it.
0:27:11 > 0:27:13Has that "wow factor" come at a price?
0:27:13 > 0:27:17Remember, Tom spent around £180,000.
0:27:17 > 0:27:21What sort of resale figure could he achieve?
0:27:21 > 0:27:22In terms of value,
0:27:22 > 0:27:26I think the owner's done everything he can to maximize the resale,
0:27:26 > 0:27:28but it's unlikely to return above the £200,000 mark.
0:27:28 > 0:27:33If we were to put this property on the market, I would start asking £220,000.
0:27:33 > 0:27:35I'm happy with either but, as you know,
0:27:35 > 0:27:39I'm not here to sell it anywhere, so it doesn't have a massive impact.
0:27:39 > 0:27:42Quite a difference in estimates there,
0:27:42 > 0:27:45but even if Tom got the lower value,
0:27:45 > 0:27:50he could still make £20,000 pre-tax profit. What about rental?
0:27:50 > 0:27:55Looking at the rental market, this should let very well at £700 per calendar month.
0:27:55 > 0:27:56If we put this property up for rent,
0:27:56 > 0:27:59you'd be able to get £700 per calendar month.
0:27:59 > 0:28:02Well, if I ever did want to move to a different house, you know,
0:28:02 > 0:28:06I'd rather keep hold of houses rather than sell them, so that's interesting to know.
0:28:06 > 0:28:11Those sort of returns could give Tom just under a 5% yield.
0:28:11 > 0:28:15But for now, he's focusing on enjoying his new home
0:28:15 > 0:28:21and hasn't let that big spend overshadow the experience.
0:28:21 > 0:28:24Yeah, I've really enjoyed myself. It's been a lot of hard work,
0:28:24 > 0:28:28but I would certainly consider doing it in the future.
0:28:31 > 0:28:33Well, there's one investment strategy,
0:28:33 > 0:28:37which says you should buy property within close proximity of water.
0:28:37 > 0:28:40Well, that works for the property I'm here to see
0:28:40 > 0:28:44because it's just three miles away from the marina here in Southampton.
0:28:47 > 0:28:49Today's property is in Bitterne village.
0:28:49 > 0:28:52It's a popular residential area with good schools, shops,
0:28:52 > 0:28:55and easy access into the centre of Southampton
0:28:55 > 0:29:00with its bars and entertainment area around the harbour.
0:29:00 > 0:29:03Well, although the location ticks the boxes,
0:29:03 > 0:29:08the kind of property isn't really in most investors' top-five choices,
0:29:08 > 0:29:10because it's a bungalow.
0:29:10 > 0:29:13Now I personally love bungalows, I was born in one.
0:29:13 > 0:29:15They were brought over from India in the 1920s,
0:29:15 > 0:29:19the first ones appeared in London and they spread across the country.
0:29:19 > 0:29:21Nowadays, developers don't like them
0:29:21 > 0:29:24because they don't make the most of the space they sit on.
0:29:24 > 0:29:28However, ones like this... You've got to say, it's got character.
0:29:28 > 0:29:34The bungalow was guided at £140,000 and certainly looks inviting
0:29:34 > 0:29:38with its fairytale turret and red-and-black chequered brickwork,
0:29:38 > 0:29:40which has obviously seen better days.
0:29:40 > 0:29:42The bow front seems to have had some movement,
0:29:42 > 0:29:46but this just seems to add to the unusual charm of the place.
0:29:46 > 0:29:52OK, I wonder if the internal layout is as quirky as the outside.
0:29:52 > 0:29:54Well, on the face of it, no, it all seems to make sense.
0:29:54 > 0:29:58We've got rear sitting room or dining room leading to kitchen, two bedrooms,
0:29:58 > 0:30:01bathroom and toilet, and then through
0:30:01 > 0:30:04into the front sitting room, the living room area, I suppose.
0:30:04 > 0:30:06But... Oh, boy! What's that?!
0:30:06 > 0:30:08HE LAUGHS
0:30:08 > 0:30:12Now, no prizes here for guessing what...
0:30:12 > 0:30:13Oh, my goodness gracious.
0:30:13 > 0:30:21THAT is a perfect, perfect example of woodworm.
0:30:21 > 0:30:25You can see the holes, but by the time it gets to this stage,
0:30:25 > 0:30:30the beetles, which were burrowing their way through the wood have left, leaving powdered wood.
0:30:30 > 0:30:33Now you don't know how far that goes, but...
0:30:34 > 0:30:36..that could be quite serious.
0:30:36 > 0:30:38Clearly, have this whole place treated
0:30:38 > 0:30:42and there's going to be a lot of floorboards that need replacing.
0:30:44 > 0:30:46So, not a good start.
0:30:46 > 0:30:49Up in the loft, someone has gone to the trouble
0:30:49 > 0:30:51of attempting an attic conversion,
0:30:51 > 0:30:55but they shouldn't have bothered - it's dark, dingy and cramped.
0:30:55 > 0:30:58But at least the potential's there.
0:31:01 > 0:31:04Well, not a bad-size bedroom, and lots of light pouring in,
0:31:04 > 0:31:08but if you're nervous or suspicious about walking under ladders,
0:31:08 > 0:31:09this really isn't ideal -
0:31:09 > 0:31:12the stairs up to that bodged job of an attic conversion.
0:31:12 > 0:31:16But through here to, I guess, the rear sitting room,
0:31:16 > 0:31:20a nice old fireplace, which you could probably have some fun with,
0:31:20 > 0:31:23but some odd doorways out to various other parts of the property.
0:31:23 > 0:31:25And then through to the biggest problem
0:31:25 > 0:31:28with this particular bungalow, which is the kitchen.
0:31:28 > 0:31:30I think it's in a bit of an extension,
0:31:30 > 0:31:34not a particularly nice job. It's clearly totally lacking.
0:31:34 > 0:31:37I'd think about maybe extending the bungalow out
0:31:37 > 0:31:40because you need to get a better working area in this place
0:31:40 > 0:31:43and I don't see how you could do it with the space there is.
0:31:43 > 0:31:45Outside there is some of that space available,
0:31:45 > 0:31:47so that's a pretty good option.
0:31:47 > 0:31:55At the bottom of the untidy garden there's a timber garage that just might need replacing.
0:31:55 > 0:32:00But despite its rundown, dishevelled appearance, this bungalow does have character and individuality.
0:32:00 > 0:32:06All it needs is some careful attention to make it a lovely home.
0:32:08 > 0:32:10So at a guide price of £140,000,
0:32:10 > 0:32:14what does a local estate agent make
0:32:14 > 0:32:18of this little two-bed in Southampton?
0:32:18 > 0:32:20First impressions of this property -
0:32:20 > 0:32:23unusual bungalow, very attractive from the outside.
0:32:23 > 0:32:27Obviously, you notice it needs a fair bit of work doing to it.
0:32:27 > 0:32:30There are numerous rooms, all of which are quite small,
0:32:30 > 0:32:33so it might lend itself to being opened out, extended really.
0:32:33 > 0:32:36Once this bungalow was renovated and enlarged,
0:32:36 > 0:32:39what market could it be aimed at?
0:32:39 > 0:32:42I think, possibly, your target buyer is somebody that's downsizing,
0:32:42 > 0:32:45particularly the older generation,
0:32:45 > 0:32:48even though the types of buyer have changed over the years.
0:32:48 > 0:32:52But you do get quite a vast demand for them depending on time of year.
0:32:52 > 0:32:59Given its guide price of 140 grand, would an extensive renovation be worthwhile?
0:32:59 > 0:33:02The resale value for this property extended,
0:33:02 > 0:33:05you're probably looking in excess of £200,000.
0:33:05 > 0:33:10If they did a really good job they might be able to touch on around £225,000.
0:33:10 > 0:33:12And the rental returns?
0:33:12 > 0:33:16Rental valuation for this property per calendar month is around £800.
0:33:21 > 0:33:24Well, it's not without its problems, but you know what?
0:33:24 > 0:33:26I really like this little bungalow.
0:33:26 > 0:33:31Yes, you'd have to sort out that bowing in the front wall and treat it for woodworm,
0:33:31 > 0:33:34but get the planning permission for the extension of the kitchen,
0:33:34 > 0:33:36and you've got a lovely little home here.
0:33:36 > 0:33:39Let's find out who fell in love with it at the auction.
0:33:44 > 0:33:46Lot number eight,
0:33:46 > 0:33:50£125,000 is the asking start-point.
0:33:50 > 0:33:56125, gentleman in the blue jumper, thank you. 125, I have got.
0:33:56 > 0:33:59Is there £126,000 in the room?
0:33:59 > 0:34:02There is. Thank you, madam, 126.
0:34:02 > 0:34:03Now back at 127, sir.
0:34:03 > 0:34:05There's a nod at 127.
0:34:05 > 0:34:07Now looking for 128.
0:34:07 > 0:34:08128 is bid.
0:34:08 > 0:34:11129, thank you. Now looking for 130.
0:34:11 > 0:34:12Shake of the head.
0:34:12 > 0:34:15I have 129 on my right-hand side,
0:34:15 > 0:34:18now looking for 130 from somewhere else.
0:34:18 > 0:34:23130, the lady does, chatting to her husband, 130. 131?
0:34:23 > 0:34:25131 is bid. 132?
0:34:25 > 0:34:30132,000. Sir, 133?
0:34:30 > 0:34:32133 he does.
0:34:32 > 0:34:38Back to you, madam, 134,000. 135?
0:34:38 > 0:34:41134,500? No? Shaking his head. It's with you, madam, at £134,000.
0:34:41 > 0:34:45New bidder, thank you, at the back.
0:34:45 > 0:34:46134,500.
0:34:46 > 0:34:48135, madam?
0:34:48 > 0:34:53135,000. Last chance to you, sir, if not, I'm selling.
0:34:53 > 0:34:55£135,000, then.
0:34:55 > 0:34:59Once, 135 twice...
0:34:59 > 0:35:03135,000 for the third and the final time.
0:35:03 > 0:35:04Well done.
0:35:04 > 0:35:09The successful bidders were Julie and her partner Tor.
0:35:09 > 0:35:17They got the bungalow for 135,000, 5,000 below its guide price which was pretty good going.
0:35:17 > 0:35:24Julie's a former education and charity-sector worker who now trades on the Norwegian stock exchange.
0:35:24 > 0:35:28I met up with her to find out about their plans.
0:35:28 > 0:35:30- Julie, congratulations.- Thank you.
0:35:30 > 0:35:33You've got a sweet little bungalow, haven't you?
0:35:33 > 0:35:36- It is a sweet little bungalow. - Why did you want to buy it?
0:35:36 > 0:35:39We liked the look of it and we hadn't seen it before we bought it,
0:35:39 > 0:35:41but we like the look of it. We...
0:35:41 > 0:35:43How do you mean? You haven't seen it...
0:35:43 > 0:35:46I know that's breaking the rules, but we... We did it.
0:35:46 > 0:35:50We won't do it a second time, but we liked the look of it and it was going at a good price
0:35:50 > 0:35:54and we knew the area it was in, so we decided that we would buy it.
0:35:54 > 0:35:57The look of it from what? From the picture in the catalogue?
0:35:57 > 0:35:59From the catalogue, that's all we knew at the time.
0:35:59 > 0:36:03And luckily, very luckily, it's actually a good buy.
0:36:03 > 0:36:06So, at what point did you decide you were going to buy it?
0:36:06 > 0:36:09- During the auction. - Actually during the auction?
0:36:09 > 0:36:10Yes, yes.
0:36:10 > 0:36:13We had been looking at another property, which came on later,
0:36:13 > 0:36:14but when this one came up
0:36:14 > 0:36:17and we realised the price, we thought it was a good buy.
0:36:17 > 0:36:19So, did you read the legal pack?
0:36:19 > 0:36:21Nope.
0:36:21 > 0:36:26So you not only didn't visit, but you didn't know anything about its legal status.
0:36:26 > 0:36:29This is breaking all of the rules and I know it's not what you should do,
0:36:29 > 0:36:33and it's not we will do a second time, but this time we did, yeah.
0:36:33 > 0:36:35Why?
0:36:35 > 0:36:39I think we just...got carried away on the enthusiasm of the day,
0:36:39 > 0:36:42and we did like the look of it and we did know the area,
0:36:42 > 0:36:45so there were some positives in there.
0:36:45 > 0:36:47And we knew the price range of the area.
0:36:47 > 0:36:50But we know that by doing that, we put ourselves in line
0:36:50 > 0:36:54for some really unpleasant surprises, which luckily haven't materialised.
0:36:54 > 0:36:59We, sort of... We've got what we expected with it, so that's OK.
0:36:59 > 0:37:03# This could be my lucky day... #
0:37:03 > 0:37:07Breaking all those auction-buying rules and getting away with it.
0:37:07 > 0:37:10While she and her Norwegian partner, Tor,
0:37:10 > 0:37:14may have got lucky with their impromptu buying strategy,
0:37:14 > 0:37:17they do at least have a plan for their next step.
0:37:17 > 0:37:20We have a plan over four or five years to do several houses,
0:37:20 > 0:37:23to sell them on and then, actually to arrive at a point
0:37:23 > 0:37:26where we will have the house that we want to stay in.
0:37:26 > 0:37:28And that might take a little bit longer
0:37:28 > 0:37:31if the market freezes for a while, but it's still the same plan.
0:37:31 > 0:37:35But for the present their immediate plan
0:37:35 > 0:37:39is to renovate the entire bungalow. Including - new windows, electrics,
0:37:39 > 0:37:41plumbing and kitchen.
0:37:42 > 0:37:44And the bathroom.
0:37:44 > 0:37:46By extending into the garden,
0:37:46 > 0:37:49they hope to enlarge the bungalow's footprint
0:37:49 > 0:37:51from 65 to 100 square metres.
0:37:51 > 0:37:54This would allow them to reconfigure the layout of the rear
0:37:54 > 0:37:57and put a proper staircase up to that loft room.
0:37:57 > 0:38:01All good news so far until...
0:38:01 > 0:38:03We will need to take out the front bay window,
0:38:03 > 0:38:07the circular bay window, because that's bulging, rebuild that.
0:38:07 > 0:38:14Very probably, I think, take that opportunity to change the turret and have a conventional roof.
0:38:14 > 0:38:18That's still in the pot, but we think probably that will go.
0:38:18 > 0:38:20Don't get rid of the turret.
0:38:20 > 0:38:25Everybody loves the turret, but it's whether anybody would buy the house with the turret.
0:38:25 > 0:38:26You bought it from the picture.
0:38:26 > 0:38:29- True.- And the turret was part of the picture.
0:38:29 > 0:38:31We'll wait and see.
0:38:32 > 0:38:34I may have got a reprieve for the turret here,
0:38:34 > 0:38:38but it looks like Julie has taken a practical approach to solve the problems.
0:38:38 > 0:38:43The pair have a budget of 50 grand, which seems reasonably healthy,
0:38:43 > 0:38:47but there is one big issue to be resolved, the woodworm.
0:38:48 > 0:38:50What are you going to do about them?
0:38:50 > 0:38:54Strip out the floorboards, replace them, have the joists checked carefully.
0:38:54 > 0:38:58If the joists are damaged too, then sadly, they would have to come out.
0:38:58 > 0:39:01We're hoping that that's not the case, and the first opinion
0:39:01 > 0:39:05from our structural person is that that isn't the case,
0:39:05 > 0:39:07but we don't have a definite on that yet.
0:39:07 > 0:39:11We've got a little bit of subsidence going on up there too.
0:39:11 > 0:39:13Have you had a structural survey done now?
0:39:13 > 0:39:18Yes. It's settlement rather than subsidence, and we are on clay here,
0:39:18 > 0:39:22and a bungalow built in 1931 would have quite shallow foundations.
0:39:22 > 0:39:24It's not collapsed drains, which is good news.
0:39:24 > 0:39:27We are taking off this back part of the house anyway,
0:39:27 > 0:39:29so we'll be able to treble check that.
0:39:29 > 0:39:31We will have to, obviously,
0:39:31 > 0:39:34build that back of the house on stronger foundations
0:39:34 > 0:39:37and possibly underpin the door, the front door,
0:39:37 > 0:39:40put blocks under there to underpin it.
0:39:40 > 0:39:44And that, we hope, will actually solve the problem.
0:39:44 > 0:39:48Well, perhaps all of that 50 grand budget will be needed.
0:39:48 > 0:39:51They plan to do the work themselves and aim to finish in six months,
0:39:51 > 0:39:54though something tells me that could be rather tight.
0:39:54 > 0:40:00We'll go for lots of natural light, opening it out, lots of light colours, making it comfortable,
0:40:00 > 0:40:07clean, Scandinavian, you know, nice design which will be attractive.
0:40:07 > 0:40:12- Well, good luck with it and look after it, it's a lovely place.- Thank you.
0:40:12 > 0:40:16So, Julie breaking all the rules buying this place -
0:40:16 > 0:40:21not only not visiting it, but also not reading the legal pack.
0:40:21 > 0:40:23However, she might have got away with it,
0:40:23 > 0:40:25she's got herself a lovely bungalow.
0:40:25 > 0:40:29Some ambitious plans, I just hope the turret stays.
0:40:29 > 0:40:32Find out how she gets on later in the show.
0:40:35 > 0:40:39Time has passed, have our buyers kept to their schedule or have they overrun?
0:40:39 > 0:40:44Have the stuck to their budget or has money just slipped through their fingers?
0:40:44 > 0:40:45Ha-huh! It's time to find out.
0:40:45 > 0:40:50It was just outside Maidstone, Kent, in the village of Larkfield,
0:40:50 > 0:40:54where we first met architect, Pete, and his builder mate, Mark.
0:40:54 > 0:40:57For their first business venture together,
0:40:57 > 0:41:02they'd just bought a rather dilapidated bungalow for £193,000.
0:41:02 > 0:41:06It also had the bonus of a potential building plot behind it.
0:41:08 > 0:41:12- We bought this, primarily, knowing there was no profit in it.- Mmm.
0:41:12 > 0:41:14The profit's in the back garden, where, hopefully,
0:41:14 > 0:41:17we'll get planning and that's where we'll make money.
0:41:18 > 0:41:21In essence, this was a two-stage project.
0:41:21 > 0:41:24The first stage meant doing up the bungalow
0:41:24 > 0:41:27while trying to get planning permission to develop the plot at the back.
0:41:27 > 0:41:32Seven months on, where have they got to?
0:41:32 > 0:41:35Well, there's definitely been massive progress on the bungalow
0:41:35 > 0:41:38with a dormer extension added in the roof,
0:41:38 > 0:41:43new windows, doors and a lawned front garden.
0:41:46 > 0:41:50And inside? Well, the rooms have been modernised
0:41:50 > 0:41:54and the new decor creates a less boxy feel.
0:41:57 > 0:42:02And they've opened up some areas, most noticeably in the kitchen.
0:42:05 > 0:42:10Well, I don't know if you remember when you was here last time, there was actually a wall here.
0:42:10 > 0:42:14We decided to take it down to open it up into a family room
0:42:14 > 0:42:18or a kitchen/diner, and one of the subtle, little differences
0:42:18 > 0:42:19that no-one really notices
0:42:19 > 0:42:22is we actually moved the door over, for two reasons -
0:42:22 > 0:42:26one, you're having a breakfast bar, so it makes a definite image,
0:42:26 > 0:42:28but also to give you room for a sofa.
0:42:32 > 0:42:36The addition of patio doors now means you can go straight out
0:42:36 > 0:42:40into the small, but adequate, fenced garden.
0:42:40 > 0:42:42The two bedrooms are finished off
0:42:42 > 0:42:44and central heating has been installed.
0:42:46 > 0:42:50So, with a fabulous new bathroom-cum-wet-room,
0:42:50 > 0:42:52downstairs is now complete.
0:42:52 > 0:42:54OK, the changes we made on the first floor -
0:42:54 > 0:42:59firstly, we've created a new bathroom in a dormer roof structure.
0:42:59 > 0:43:01In doing so, this also allowed us
0:43:01 > 0:43:03to create an airing cupboard on the opposite side.
0:43:03 > 0:43:06The room behind me has more or less stayed the same.
0:43:06 > 0:43:11We introduced a VELUX window which gives lots of natural light into this bigger landing.
0:43:11 > 0:43:14The other thing we did was to shorten the back bedroom.
0:43:14 > 0:43:15The door line used to be here,
0:43:15 > 0:43:18but we've moved it back onto this line here.
0:43:18 > 0:43:20In the back bedroom, we just decorated,
0:43:20 > 0:43:22we re-plastered the whole thing.
0:43:22 > 0:43:24We also rationalised the storage space,
0:43:24 > 0:43:28which gives storage space so it would be great for families and children.
0:43:28 > 0:43:31I think the addition of the bathroom on this floor,
0:43:31 > 0:43:35along with the skylight, now really makes the space work.
0:43:35 > 0:43:40You can see that the whole bungalow has been re-jigged to maximize and enhance the living space.
0:43:40 > 0:43:44It shows both good design and build qualities.
0:43:44 > 0:43:47We've both played the roles that I guess are our backgrounds.
0:43:47 > 0:43:51He's an architect, um, he's not very hands-on.
0:43:51 > 0:43:53I've also done my best to roll my sleeves up
0:43:53 > 0:43:55and get involved with the build itself.
0:43:55 > 0:43:58There's a few times he's like, "Why don't we do this?"
0:43:58 > 0:44:00I'm like, "No, why don't we do this?"
0:44:00 > 0:44:01And he's like, "Oh, yeah."
0:44:01 > 0:44:04But I think that's why the partnership's worked well
0:44:04 > 0:44:08because we do have different knowledge fields, and collectively,
0:44:08 > 0:44:09have a good span of knowledge.
0:44:09 > 0:44:13These guys really have combined their skills,
0:44:13 > 0:44:15the A-Team of property development.
0:44:17 > 0:44:20So, having successfully completed their first mission
0:44:20 > 0:44:21and got the bungalow sorted,
0:44:21 > 0:44:24what about that possible development at the back?
0:44:24 > 0:44:28With regards to the plot of land, we've, sort of, been advised
0:44:28 > 0:44:30that it's better to keep it as a piece of land
0:44:30 > 0:44:33that doesn't have planning permission on it
0:44:33 > 0:44:35to the point where we sell this property.
0:44:35 > 0:44:40After talking to the agents, they've all said, "Flats, flats, flats, flats."
0:44:40 > 0:44:42A scheme, which we've taken to the planners -
0:44:42 > 0:44:44a five, one-bed apartment block on the land
0:44:44 > 0:44:47And the block would resemble a pair of semis in truth,
0:44:47 > 0:44:51with four in the main body of the property and one in the roof.
0:44:51 > 0:44:53They're not opposed to it, but there will be hurdles.
0:44:55 > 0:44:59So it's still in the balance, and at present, there's no certainty
0:44:59 > 0:45:02that Pete's plan will ever make it off the drawing board.
0:45:02 > 0:45:05Can they afford for it to fail?
0:45:05 > 0:45:08Our original budget was about £30,000.
0:45:08 > 0:45:12We're currently more like, sort of, mid-60s at the moment.
0:45:12 > 0:45:16But we've done a lot more - we planned to come in here and just decorate,
0:45:16 > 0:45:18we bought it for the land out back,
0:45:18 > 0:45:20so we could turn this one round quickly,
0:45:20 > 0:45:25but there were so many options to turn it from a bungalow into a family home.
0:45:25 > 0:45:30They paid £193,000 for both the bungalow and the land
0:45:30 > 0:45:34and have spent a further £65,000 on the bungalow.
0:45:34 > 0:45:39With costs, this means their total outlay is about £260,000.
0:45:39 > 0:45:42So can the bungalow alone recoup the investment?
0:45:42 > 0:45:44What do two local estate agents think?
0:45:46 > 0:45:50I think the changes that have been made to the property are pretty exceptional,
0:45:50 > 0:45:53considering what it was like when I first visited.
0:45:53 > 0:45:57The changes to upstairs and to include the downstairs bathroom
0:45:57 > 0:45:59and upstairs shower room was very wise.
0:45:59 > 0:46:02I love it. They've completed the works to a very high standard
0:46:02 > 0:46:03and it looks really good.
0:46:03 > 0:46:06So, encouraging comments,
0:46:06 > 0:46:09but will that translate into a healthy end-value
0:46:09 > 0:46:14after Pete and Mark's investment of around £260,000 here.
0:46:14 > 0:46:19This property could resell for around £275,000.
0:46:19 > 0:46:20In the present market,
0:46:20 > 0:46:24I would consider this property would sell at £250,000.
0:46:24 > 0:46:29At 250, you know, that would still be acceptable.
0:46:29 > 0:46:31We'd still come out of it with a cheap piece of land to build.
0:46:31 > 0:46:36Yes, that's good, they're around break-even point before a brick's been laid.
0:46:36 > 0:46:40But if they can get the five-apartment plan approved,
0:46:40 > 0:46:42what kind of profit could they hope for?
0:46:46 > 0:46:48If they got planning permission for apartments,
0:46:48 > 0:46:52I'd expect they'd be able to get about five apartments built.
0:46:52 > 0:46:59Um, one-beds, of which I would expect them to command a sale price of around about £100,000 to £120,000.
0:46:59 > 0:47:03We would like to think that if we could get five on there,
0:47:03 > 0:47:06there would be two that were a pure profit,
0:47:06 > 0:47:07which would be one each.
0:47:07 > 0:47:10And we have said that we would probably...
0:47:10 > 0:47:13If we could walk away with one property each,
0:47:13 > 0:47:16we would keep them ourselves and rent them
0:47:16 > 0:47:20and then re-mortgage them to buy our next piece of land,
0:47:20 > 0:47:22so we'd have a constant money source for us.
0:47:22 > 0:47:26If that all works they would both be in a good position
0:47:26 > 0:47:31to invest in another project together and keep the business partnership going.
0:47:31 > 0:47:32So is that the plan?
0:47:34 > 0:47:39Yeah. No, I think the experience so far has been a very positive one for both of us.
0:47:39 > 0:47:45Almost life-changing, certainly financially, and to just give us another direction in life.
0:47:45 > 0:47:48Without a doubt, it's brilliant.
0:47:48 > 0:47:49# It's a new dawn
0:47:49 > 0:47:51# It's a new day
0:47:51 > 0:47:53# It's a new life
0:47:53 > 0:47:56# For me
0:47:56 > 0:47:58# And I'm feeling good... #
0:47:58 > 0:48:02And if they feel good now, just imagine what it will be like
0:48:02 > 0:48:06if they get that all-important planning permission.
0:48:14 > 0:48:17We're back in Southampton after nearly 18 months
0:48:17 > 0:48:21to see how first-time developers, Tor and Julie,
0:48:21 > 0:48:25fared renovating their two-bedroom bungalow.
0:48:25 > 0:48:29They bought it for £135,000, but hadn't seen the property
0:48:29 > 0:48:32or done any homework on it before the auction.
0:48:32 > 0:48:38- So you not only didn't visit the property, but you didn't know anything about its legal status?- No.
0:48:38 > 0:48:41This is breaking all of the rules and I know it's not what you should do.
0:48:41 > 0:48:47Now, outside the most stark, and in my view saddest, change
0:48:47 > 0:48:51is the loss of the turret with its gorgeous bay window.
0:48:51 > 0:48:54It's been replaced by a conventional pitched roof.
0:48:54 > 0:48:56# Give me one good reason... #
0:48:58 > 0:49:03The turret in itself was literally falling down
0:49:03 > 0:49:06so I could have kicked the walls out.
0:49:06 > 0:49:12And there was no foundations under it, so...it just had to go.
0:49:12 > 0:49:14# Yeah, we're just waiting
0:49:14 > 0:49:16# For the hammer to fall, yeah... #
0:49:17 > 0:49:21The solution has taken away some of the charm of this house,
0:49:21 > 0:49:24but I can understand the reasoning behind it.
0:49:26 > 0:49:28It's been up to Tor to wield his mighty hammer
0:49:28 > 0:49:32and almost single-handedly undertake all the repair work.
0:49:37 > 0:49:41There are still two rooms at the front, which have been re-plastered
0:49:41 > 0:49:45and both sets of windows have been replaced.
0:49:45 > 0:49:49Around the back, the property has been hugely extended.
0:49:51 > 0:49:55When we first bought it, it was virtually derelict,
0:49:55 > 0:49:59it was small, it hadn't really had anything done to it for a long time.
0:49:59 > 0:50:01The garden was completely overgrown,
0:50:01 > 0:50:04there was a derelict garage in the garden as well.
0:50:04 > 0:50:05Our plans expanded as we...
0:50:05 > 0:50:09At first we were just going to go for a fairly small extension
0:50:09 > 0:50:11and maybe add about 25% on,
0:50:11 > 0:50:15but then we realised that we would make more of the house
0:50:15 > 0:50:19if we went for larger, so we've double the house and more,
0:50:19 > 0:50:21it's now 110 square metres.
0:50:21 > 0:50:25We've added on a large extension at the back which provides living, kitchen and dining,
0:50:25 > 0:50:29and then we've changed around all the inside, haven't we?
0:50:29 > 0:50:35- Yes. All the rooms have been altered so nothing is where it used to be before.- Mmm.
0:50:35 > 0:50:37It has been a major job, yes.
0:50:38 > 0:50:41Where there were smaller individual rooms
0:50:41 > 0:50:43branching off a cramped corridor,
0:50:43 > 0:50:47there is now this huge, bright open interior space.
0:50:48 > 0:50:53Tor and Julie have tried to bring a taste of Scandinavian luxury
0:50:53 > 0:50:55to the south coast of England.
0:50:55 > 0:50:59And I'm pretty sure that bath won't be staying there.
0:51:00 > 0:51:01Their vision is clear to see -
0:51:01 > 0:51:08they've set about creating a unique and spacious open-plan living area.
0:51:10 > 0:51:15One of the rooms that warranted serious modernisation was the kitchen,
0:51:15 > 0:51:17this is now part of the extension.
0:51:19 > 0:51:23Well, we are now in the extension
0:51:23 > 0:51:30and the extension has actually doubled the size of the house
0:51:30 > 0:51:32and it's the extension that we are the most proud of.
0:51:32 > 0:51:37Contemporary look, we really enjoy it, we like it a lot.
0:51:37 > 0:51:40We have the new kitchen units,
0:51:40 > 0:51:45we have the open-space living room/dining room.
0:51:45 > 0:51:51It has come together exactly how we wanted it to and we are very proud of it.
0:51:54 > 0:51:57One of the more unique aspects of this development
0:51:57 > 0:52:01is that the property is now, effectively, a two-storey bungalow.
0:52:02 > 0:52:06There's been considerable development upstairs in the loft.
0:52:06 > 0:52:12Tor and Julie plan for this to become a third bedroom with space for an en-suite wet room.
0:52:15 > 0:52:17It will add something extra to the bungalow.
0:52:17 > 0:52:20I think we've achieved the Scandinavian feel.
0:52:20 > 0:52:23It's very open-plan, this large extension is very open-plan.
0:52:23 > 0:52:28The rest of the house, too, has that feel to it, or it will when it's finished -
0:52:28 > 0:52:30it will be very modern, very contemporary.
0:52:30 > 0:52:34Their initial plan was to turn the renovation around in six months,
0:52:34 > 0:52:39but here we are nearly a year and a half later, so what happened?
0:52:39 > 0:52:42The reason why we made it such a big job
0:52:42 > 0:52:47was that we went for permitted development at first,
0:52:47 > 0:52:51then we realised that it just doesn't work,
0:52:51 > 0:52:56so we decided to go for planning and this is what we ended up with.
0:52:57 > 0:53:00# Problems Problems
0:53:00 > 0:53:02# Pro-oh-oh-oh-blems... #
0:53:04 > 0:53:07Some parts of this property needed urgent attention,
0:53:07 > 0:53:11for instance - the floorboards eaten away by woodworm.
0:53:11 > 0:53:15Tor's solution to that is very simple.
0:53:15 > 0:53:20We will just take out absolutely every single floorboard
0:53:20 > 0:53:23and we will just redo the joists.
0:53:23 > 0:53:26Put in new joists and just get rid of it that way.
0:53:26 > 0:53:31Even with the savings made thanks to Tor's handyman endeavours,
0:53:31 > 0:53:37the costs must have spiralled well beyond their initial estimate of 50,000.
0:53:37 > 0:53:43We will come in on around 100,000, yeah.
0:53:43 > 0:53:45- When it's finished. - When it's finished, yeah.
0:53:45 > 0:53:52The roof with the skylights, that is probably close to 10,000, yeah.
0:53:53 > 0:53:57They bought the house for £135,000.
0:53:57 > 0:54:03So with the projected redevelopment budget of 100,000, that's a lot of ground to catch up.
0:54:03 > 0:54:08We invited two local estate agents around to give us their opinions.
0:54:11 > 0:54:13This is my second time to the property.
0:54:13 > 0:54:18It is a complete transformation. Obviously, it's an ongoing project,
0:54:18 > 0:54:20but it's good to see that it's moving ahead.
0:54:20 > 0:54:22A few subtle changes here and there -
0:54:22 > 0:54:26I've noticed that the circular bay to the front of the property has gone
0:54:26 > 0:54:29which is a disappointment because I thought that was a nice feature.
0:54:29 > 0:54:32Looking around, the property is fantastic,
0:54:32 > 0:54:34although it's not completely finished.
0:54:34 > 0:54:37I think, just looking at what they've planned -
0:54:37 > 0:54:40I think they've utilised the space really, really well,
0:54:40 > 0:54:43the finish and the spec looks really good, lots of light.
0:54:43 > 0:54:45I think they've done a fantastic job.
0:54:45 > 0:54:51Once this is fully renovated I think the property will probably have a value of around £250,000.
0:54:51 > 0:54:54If we were to put this on for sale,
0:54:54 > 0:54:58I'd like to see it on between £240,000 and £250,000.
0:54:58 > 0:55:00That would be our minimum.
0:55:00 > 0:55:03Yeah, that would be our minimum. We would not make a huge profit on that,
0:55:03 > 0:55:08but this hasn't really been that much about making a huge profit,
0:55:08 > 0:55:13this has been about learning how to do this and I'm pleased with that.
0:55:14 > 0:55:19Once completed, this house could still generate some profit for the couple.
0:55:19 > 0:55:22What if they were to try renting it?
0:55:22 > 0:55:28Once fully renovated, I think it has a rental valuation of around £900 per calendar month.
0:55:28 > 0:55:31Once completed, I think rental value-wise,
0:55:31 > 0:55:34we would probably put it on the market
0:55:34 > 0:55:36at around £900 to £950 per calendar month.
0:55:36 > 0:55:39I don't think, at the moment, we're considering renting
0:55:39 > 0:55:42because the finish will be very high standard, won't it?
0:55:42 > 0:55:46Yeah. We haven't really made any definite decisions about that,
0:55:46 > 0:55:50but it doesn't look as if we are going for the rental market.
0:55:50 > 0:55:54We will stay in it ourselves for a little while and then we'll sell it on.
0:55:56 > 0:56:02Tor and Julie plan to move into the house within the next three weeks and finish off the remaining work.
0:56:02 > 0:56:06What are their thoughts on the project now it's nearing completion?
0:56:06 > 0:56:10Recently, I've started to feel quite proud about it
0:56:10 > 0:56:14and I have enjoyed working, I've enjoyed doing the work.
0:56:14 > 0:56:17- We're tired but we're not burned out. - No, not at all.
0:56:17 > 0:56:19I've played more of a supporting role,
0:56:19 > 0:56:23but still, it's been the two of us as a team and I'm proud of it,
0:56:23 > 0:56:25I think we've produced a good house.
0:56:25 > 0:56:27I think it's well designed, well built,
0:56:27 > 0:56:30people are going to be happy living here in the future
0:56:30 > 0:56:31and I think that's...
0:56:31 > 0:56:34Yeah, we've put our stamp on this, haven't we?
0:56:34 > 0:56:35- Yes, we have. - And that's a good thing.
0:56:37 > 0:56:41That's it, but don't despair, there is plenty more out there.
0:56:41 > 0:56:44Yes, so join us next time for more Homes Under The Hammer.
0:56:44 > 0:56:46- Goodbye.- Goodbye.
0:56:54 > 0:56:57Subtitles by Red Bee Media Ltd