Episode 19 Homes Under the Hammer


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Episode 19

Martin Roberts and Lucy Alexander visit a mid-terrace house in Derby, a bungalow in Kent and a quirky property in Southampton.


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It's more important than ever to buy

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-at the right price and in the right location.

-Yes.

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From two up, two down, terraces,

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to the more unusual and quirky, you can find it all at the auction.

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And, of course, with so much choice the key is to not get too carried

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away when you buy your home under the hammer.

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Buying at auction can be a quick way to purchase property.

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But it's very much a case of buyer beware because when the hammer goes down you

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have exchanged contracts, you can't just change your mind, and you have to come up with the cash pronto.

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So will today's properties be investors' dreams or complete nightmares?

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Let's find out.

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This mid-terrace house in Derby is crammed with original features and space.

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Here you've got the makings of the most wonderful house.

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In Kent, this chalet bungalow looks a great buy

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but the concrete plot out the back is where the real money is.

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We've got ourselves some serious potential.

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And I find a quirky property in Southampton, but there's just one quirk too many.

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Oh, boy oh, boy, what's that?

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All these properties have been sold at auction

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and we'll find out who bought them and what they paid for them when they went under the hammer.

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Sold.

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Today I'm just outside Derby city centre in a place called Five Lamps.

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The Five Lamps junction is in a historic residential area

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and I'm hoping it's going to throw some light, ha ha, on our property.

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Well, a short walk from the city centre is the property

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I'm here to see, and it sounds very interesting indeed.

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It's a Victorian mid-terrace, it had a guide price of £90,000, which for a four-bedroom house like this is

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really good going, and this is one where deceptive is a word that springs to mind...

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and I'll show you why.

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From the front it doesn't look too big, does it?

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But you come inside and oh, boy, what a pleasant surprise it is.

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nice hallway there, big front room there which is good to see,

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stairs up to your bedrooms, then continuing down this corridor you've

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got stairs down to the cellar but I'm just wondering if we've got any treats in store under the carpet.

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Oh, wow, look at that.

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It's called a Minton floor.

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Imagine that cleaned up and how fantastic that would be stretching down the hallway,

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The property continues going back.

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You've got a sort of rear sitting room there and then through into this massive kitchen.

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Now, it's a bit, you know, well, horrible really, but put a really nice

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kitchen in here and you've got the makings of a most wonderful house.

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Also on the ground floor, behind the kitchen, is a downstairs bathroom

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that could easily be converted into a utility area.

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Well, up here you've got a bathroom and a loo and a bedroom that way, a large double bedroom there.

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It just sums it up really, the space in this house is fantastic.

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The landing feels lovely and open, helped by these extremely high ceilings.

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Box room there, large double bedroom there, and I think if you wanted to extend the house even more you could

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because I know that there is room in the attic to potentially build even more rooms.

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I mean it is just a fantastic house.

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This truly is a gem of a property and it's not just the space that is selling it,

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it's that solid Victorian construction that's a perennial favourite of buyers everywhere.

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So, big bedrooms, I mean, I love it.

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Nice big windows, lots of light coming in, features, fireplace, just great, get that stripped back.

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But you haven't seen the best thing yet.

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How about that for a wall of wallpaper?

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It's blooming marvellous.

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And on the subject of flowers, out back there's a good-size garden that wouldn't really take long to tame.

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To get an idea of what the property might be worth

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I invited along the auctioneer that sold it to hear his opinion.

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It's a lovely house. Super.

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Exactly what you'd want from

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an old terraced house, it's still got some of its character in it.

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Nice feel to it, nice appeal, I like it.

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If you want to make it a very nice house, beyond what it is now, then you finish up spending 20,000 on it.

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So, let's talk figures. How much could someone make here?

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Once renovated, and assuming a reasonably good standard,

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I think on today's market it would probably have a ceiling value of about £150,000 to £155,000.

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On a single family let I would say you're rental income would be about £550 to £575 a calendar month.

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Well, it's a lot of house for that £90,000 guide price.

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It would make a lovely family home or a perfect rental machine.

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Lots of options. Let's see who went for it at the auction.

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Lot 78. How much can I say for this one? Start me where you like. 90?

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Put it in. 90 I have, thank you. At £90,000 opening bid.

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95, 95, 100, 105.

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105, 106? 105 and a half.

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106? 106. 107 and a half, 108 is bid.

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108,500.

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109. 109,500. 111. No?

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£111,000. 500 somewhere else?

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At £111,000, 500, 12, 114.

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114,500. 115.

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115,500. 116.

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116,500. 120? 120, 120 and a half,

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21, and a half, 22,

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and a half, 23,

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123 and a half, 124.

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124,000. 500, sir?

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500, £125,000.

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No? £125,000 then. 25 and a half.

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26, and a half, 27, 127 and a half,

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128, 128 five, 129, 129 five, 130.

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130,000 against you. No?

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130,000 then, once, twice, third time.

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Sold at 130. Thank you.

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After all that to-ing and fro-ing the property was eventually bought

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for £130,000 by Tom, a local businessman.

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He paid a hefty £40,000 over the guide price to get it.

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-Tom, lovely to meet you.

-You too.

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-Good house.

-Thank you.

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So tell me why you wanted to buy it.

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Well, to be honest with you, I had a bit of spare money knocking about and the bank interest

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rates are pretty rubbish so I thought the best thing was put it in property.

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have you had any experience of property?

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Well, I bought a house with my brother about two years ago and I rent out rooms there as well.

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That kind of went pretty smoothly so I thought I might as well buy another.

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What do you do?

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I run a recruitment business.

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-Oh.

-In Derby. We specialise in construction so I thought the two might

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marry quite nicely as well because I know the local tradesmen who can do the work.

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For any would-be developer connections are all-important.

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# Make sure you're connected, the writing's on the wall... #

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What was it about this particular house...?

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Well, I've always grown up in Victorian period properties

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and they've got a special place in my heart really. It caught my eye when I came round.

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-It was more of a personal thing?

-Yeah, absolutely.

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Although I work in the construction industry, new build houses aren't my cup of tea at all, so I'm actually

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-drawn towards this kind of property.

-So what's the plan for it?

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Well, to be honest with you, I haven't really got any 100% plans.

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I've got a builder teed up who's going to come in and renovate the property,

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and then I'll either rent it out or potentially even more in myself.

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Oh, OK. That widens the variety of potential.

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Yeah, exactly, yeah.

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Yeah, so we'll see how it goes.

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# I just don't know what to do with myself. #

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Tom, the man without a plan.

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But all the same he has clear ideas about what needs to be done to reap the full potential here.

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I think all the horrible wallpaper has to come off,

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obviously all the nasty carpets are coming up, we'll expose the tiles in the hallway.

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Neutral colours, new kitchen, fitted diner in there.

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This will become the living room

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and we'll have a wet room and just renovate the place.

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And outside, are there any plans for that?

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It's all right out there really.

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They've got a few bushes on the go, they've got an

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apple tree coming over the fence, so not a lot to do I think.

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Tom's aiming at a six-to-ten-week renovation, and using his

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connections in the building trade hopes to do it all on a £10,000 budget.

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-So what next for you?

-I think for the time being just concentrate on this.

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In an ideal world I'd perhaps like to buy you know a house every year or two, build up a bit of portfolio,

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but I'm in no major rush, my first priority's to the business,

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and this is an accumulation of nest eggs.

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Good, well, congratulations.

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Thank you very much.

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-And we'll either see you or your tenants when we come back!

-That's right, yeah.

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Well, Tom's certainly got the contacts to sort this place out but

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it strikes me that he doesn't quite know what he's going to do yet.

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He doesn't know if he's going to live in it, rent it out,

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how much he's going to spend, or his time scale.

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You can find out what on earth happens later on in the show.

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Just outside Maidstone in Kent is the village of Larkfield,

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once an important village due to its courthouse and administrative role in county affairs.

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Now it's popular with commuters.

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Larkfield really grew in the 1970s when the M20 was built right next door, running

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from London down to Dover. But the motorway doesn't seem to have diverted much traffic away though.

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It's still busy and very loud, which is worth

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bearing in mind because this is the property I'm here to see.

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It's a chalet bungalow and it's got a guide of 140,000 to 150,000.

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As it's so near the road and has a front garden that's seen better days it's not exactly oozing curb appeal.

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Let's hope it's better inside.

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This corridor goes on for days, and there's just a succession of rooms.

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You've got a reception room, another reception room, a bedroom, another

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reception room, a bathroom, a toilet and another bedroom.

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I think it's fair to say this place is fairly huge.

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It's certainly that, with two reception rooms, either of

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which could be turned into a dining room or perhaps another bedroom.

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Then there are two decent-size bedrooms plus a separate toilet and bathroom.

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So it's not short of rooms but the layout is rather poor.

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Clearly there is no need for all these individual rooms.

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As an example, the only function this room serves is to house this staircase.

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Now, the kitchen through here is too small, I would definitely take down

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this wall and open up this space, and that is just for starters.

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Several of these rooms down here would benefit from being reorganised.

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So, come on, let's take down these walls, end the separation and really open this place up.

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# Take down these walls... #

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It feels a bit more like a hotel corridor than a bungalow.

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There should be numbers on each door, room 301, 302, it just needs a complete rethink down here.

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# Take down these walls... #

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I can't help feeling that the upstairs floor with its two

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bedrooms isn't utilising the space as well it could either.

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But if you think there's scope to improve inside, well, wait until you get outside.

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So, traditional bungalow, lots of rooms, nothing crazy about that, and outside you'll be expecting

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maybe a lawn, a patio, some dahlias perhaps.

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Well, what you get is this, more concrete than cultivation.

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Talk about a concrete jungle, this feels more like a piece of wasteland than a garden.

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Or should that be land going to waste?

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With those old garages at the bottom I see development opportunities.

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The easiest thing to do here would be to apply for planning permission for some more garages,

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but with most houses having their own off-road parking I'm not sure that's going to make you a mint.

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So what about another property?

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There's clearly room and as it's a corner plot

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you have a second access point and that is the key.

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If you were to build another bungalow it wouldn't overlook any

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neighbouring properties and there's plenty of demand in the area.

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So there you have it, we've got ourselves some serious potential. How exciting.

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# Hey now, they pave paradise to put up a parking lot... #

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OK, so it's far from paradise and I'd say a parking lot is not the

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best option here, but boy does this look like a developer's paradise.

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A flat area of brownfield land with road access plus the bonus of the bungalow as well.

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But it is still a gamble. What does the local estate agent think?

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In my opinion, best suited on this plot would be another dwelling,

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potentially a bungalow.

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Alternatively, I think a block of flats would be a good idea.

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I do not believe that semi-detached properties would be of benefit at all.

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Interesting.

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I hadn't thought about flats. Which option would maximize the return?

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To build a two-bedroom bungalow on the plot, I would estimate the property to be worth around £175,000.

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If you got planning on the plot for flats I would imagine that you would

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have an estimate price of between £100,000 and £120,000.

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If you got five flats, even with build costs, that could bring in a substantial return.

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On top of that there's a potential profit with the existing bungalow.

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How much would that be worth once done up?

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You would probably look to achieve in and around about £250,000.

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When you consider both the land and bungalow were guided at just 140,000 to 150,000, then the bungalow alone

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could cover your costs, leaving any development at the back as clear profit.

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Well, this bungalow doesn't only hide a wealth of rooms, it also holds a potentially

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valuable opportunity to build a whole separate property and I think that is where the real money lies.

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Let's see who agreed at the auction.

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Over to lot 50 which is a detached chalet bungalow there

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on a good corner plot.

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Potential there for development there as well, subject to planning.

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Start me where you will. £140,000.

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I'm on the way at 140. 140.

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£140,000, I'm on my way at 140.

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140 now. 145, at 145, at 145.

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150. At 150. 50 it's with you.

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And 160 now make it.

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160, it's worth it, 160.

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160, standing in a fresh place.

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170, now make it. 70 I've got, and now £180,000.

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180 I've got.

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And 190, 190, 190. 190 I've got.

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191, 192, 192 and 193,

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193, 193.

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Keep with it, 193. 193, yeah, he says yes. 194.

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At £193,000 you've got, then 94 I'm looking for.

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Are we all done at £193,000?

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If so, for the first time at 193,000, second time at 193,

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third and final time. If you're all done it's going to be sold for 193,000.

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Well done, Sir, it's yours for 193 and that's upside down...

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For 193,000, about 40 to 50 above the guide price, the new owners of

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the bungalow and land are old friends and locals, Mark and Pete.

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They hope this might be the start of a property sideline.

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-Guys, congratulations.

-Thank you.

-I bet you're thrilled you got this on auction day.

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-Yeah.

-Absolutely.

-So who saw the potential in this?

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I did, many, many years ago.

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I had a girlfriend not living too far away

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and used to drive around, and you could see,

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-and it just screamed building plot out the back.

-Mark, what do you do?

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I'm a bricklaying contractor by trade,

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so I've got lots of blokes work for me.

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But I've been in the building industry most of my life,

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so I feel fairly confident.

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You know, we work for some fairly idiot people and if they can do it,

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then I'm sure me and Pete have a fair crack at it, you know?

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-Pete, what do you do?

-I'm an architect, I sit on the other side of the fence.

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I'm the person that Mark would be swearing about on site...

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-and running down, but...

-And still will be.

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For some time now, these two mates have considered working together and pooling their complimentary skills.

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Finally, they've found a project that's right for both of them.

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So, Pete, what is it you're going to do to this property to change it?

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Essentially, modernise it without it being over-contemporary.

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It clearly needs a bathroom, it clearly needs a kitchen.

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If we can get a bathroom upstairs as well,

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then that will also, you know, be a very positive factor.

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Perhaps we'll put in large glass French doors off from the kitchen,

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so the place is less focused

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on the front of the house where the noisy road is

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and more at the back where the garden is.

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And that's where your expertise lies.

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-Hopefully, we'll find out.

-Yeah.

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So what's the budget for the work in here, just in this bungalow?

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We hope about 30,000, so...

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And it's quite a tight budget and we've bought this, primarily,

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-knowing there's no profit in it.

-Mmm.

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The profit's in the back garden where hopefully we'll get planning

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and that's where we'll make our money.

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This seems to be a win-win situation for Mark and Pete.

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They've got the combined skills to modernise the bungalow and maybe make a profit here.

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But their skills will be tested by the plot at the back.

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The plan is... We're still exploring possibles with local agents

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to find out what permutation would yield the best results.

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What we're looking at is a chalet bungalow,

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which the agents were talking about in terms of 200...

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-200-210, but they all seem to be screaming flats.

-Had you not thought of that?

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We considered it, but we did some initial research with agents,

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actually before we went to auction, on it.

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And what we'd concluded, rightly or wrongly, was that a chalet bungalow was the right thing to build.

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However, yeah, it has thrown a slight curve ball

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as now the agents have, sort of, flagged up that, you know,

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potentially, flats would be a better route to go.

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Well, certainly small, sort of, starter-end of the market.

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Tower block it is.

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# The only way is up, baby... #

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Joking aside, we aren't talking tower block.

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More like a two-storey house with, maybe, six apartments.

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It would cost more to build, but could bring in more money, so more profit for them.

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If they couldn't build, would that scupper their business plans together?

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The longer-term goal, if we're honest, this size,

0:20:200:20:23

the nature of this, is not where we see ourselves.

0:20:230:20:26

In my work, I tend to design a lot of high-end residentials

0:20:260:20:29

for wealthy clients who have lovely houses

0:20:290:20:32

and have budgets which reflect that.

0:20:320:20:34

I think longer term that's where we'd like to be,

0:20:340:20:37

-but this is an acorn...

-Yeah, got to start somewhere, don't you?

0:20:370:20:41

And, hopefully, our intention isn't really to take the money

0:20:410:20:45

and go and buy a fancy sports car or anything.

0:20:450:20:48

-Buy the sports car in a few year's time.

-Hopefully.

0:20:480:20:50

Well, they say the beginning of any race or journey is all-important.

0:20:500:20:54

With Pete and Mark all revved up and raring to go, let's hope the planners give them the green light.

0:20:540:21:00

So Pete and Mark are at the start of a beautiful business relationship,

0:21:000:21:05

or are they?

0:21:050:21:06

What if they don't get their tower block?

0:21:060:21:08

What if the planners say a big "no"?

0:21:080:21:10

Will they get the money they want for this place?

0:21:100:21:12

Will their friendship survive?

0:21:120:21:14

You can find out later on in the show.

0:21:140:21:17

'Coming up, in Southampton,

0:21:180:21:20

'this bungalow may only have one floor,

0:21:200:21:23

'but even that's looking dodgy.'

0:21:230:21:26

Clearly, have this whole place treated.

0:21:260:21:28

We return to Kent to see if working with a mate makes things any easier.

0:21:290:21:34

A few times he's like, "Why don't we do this?"

0:21:340:21:36

And I'm like, "No, why don't we do this?"

0:21:360:21:38

But first, sometimes you CAN just get carried away.

0:21:410:21:46

To be honest, I don't know how much has been spent.

0:21:460:21:48

We're back at Five Lamps in Derby

0:21:500:21:52

where local businessman, Tom, bought this mid-terrace,

0:21:520:21:57

four-bedroom house for £130,000.

0:21:570:22:00

Despite paying £40,000 over the guide price,

0:22:000:22:03

he wasn't quite sure what he wanted to do with it.

0:22:030:22:07

So, what's the plan?

0:22:070:22:08

Well, to be honest with you, I haven't got any 100% plans.

0:22:080:22:11

I'll either rent it out or, potentially, even move in myself.

0:22:110:22:14

It's been five months and though the winter weather's a bit chilly,

0:22:160:22:20

let's hope Tom's renovation is something we'll warm to.

0:22:200:22:24

Tom's restoration programme certainly shows decisive action here -

0:22:270:22:32

the dividing wall's been removed and there's an open-plan area leading through to a new kitchen.

0:22:320:22:38

So when we first bought the house, there was a wall here,

0:22:420:22:45

which we knocked through,

0:22:450:22:47

which creates a much more open-plan space here.

0:22:470:22:50

We had a doorway in here, which we thought we may as well get rid of

0:22:500:22:54

and it just really lends to a continuity right the way through.

0:22:540:22:58

Obviously, it's opened up into a big kitchen which we're pleased with.

0:22:580:23:02

The nature of the shape and size of the room

0:23:020:23:05

meant we were restricted with how to lay out the units,

0:23:050:23:08

but we'd just gone for straight down either side,

0:23:080:23:11

obviously, with the Belfast sink and the granite worktops.

0:23:110:23:14

Really pleased with the ground floor area.

0:23:140:23:16

It's open-plan and it means you can communicate with people regardless of what room they're in.

0:23:160:23:21

Upstairs hasn't undergone such a radical transformation.

0:23:210:23:27

All the bedrooms have been redecorated though, and painted in cool tomes.

0:23:270:23:32

The old fashioned bathroom has been modernised, turning it into a luxurious space.

0:23:320:23:38

It's pretty clear now that Tom has made a decision about who's going to live here.

0:23:400:23:45

Shortly after buying it there was a fair degree of indecision

0:23:450:23:48

about what to do with it, whether to rent it out or to move in myself.

0:23:480:23:53

I decided to move in myself,

0:23:530:23:54

purely because I fell in love with the property

0:23:540:23:57

after a little while of doing it up and that's how I find myself here.

0:23:570:24:02

Tom's made every effort to restore this house to its former glory.

0:24:020:24:07

We replaced all the picture rails, all the coving,

0:24:070:24:10

I put new ceiling roses upstairs and down.

0:24:100:24:12

And we really just tried to get all the original door knobs,

0:24:120:24:16

just restore everything as much as we could to its former glory.

0:24:160:24:20

That included the original floor tiles in the hall,

0:24:200:24:24

which adds a touch of Victorian class to the entrance.

0:24:240:24:28

But on the more practical level, Tom started from scratch

0:24:280:24:32

by re-plastering, re-wiring and re-plumbing the whole house,

0:24:320:24:36

a process not without setbacks.

0:24:360:24:38

The floor was a big thing -

0:24:390:24:41

we had to replace a couple of floor joists,

0:24:410:24:45

we had to treat for rising damp with injections and damp-proof slurry,

0:24:450:24:49

and then, obviously, plaster over the top and get it decorated.

0:24:490:24:55

But it was... You know, it was a fairly big job.

0:24:550:24:58

With the project now complete after five months, Tom's happily settled in with his two cats.

0:24:580:25:03

Even they must be aware of the restoration.

0:25:030:25:07

# What's new pussycat?

0:25:070:25:08

# Whoa-oh whoa-oh whoa oh-oh

0:25:080:25:11

# What's new pussycat?

0:25:110:25:12

# Whoa-oh whoa-oh whoa oh-oh... #

0:25:120:25:14

I think I'm most pleased with the bathroom.

0:25:140:25:17

It is relatively small, but the finish is fantastic -

0:25:170:25:19

we had a great tiler who came in and did some really good work there.

0:25:190:25:25

Equally, downstairs, I think has turned out really, really well.

0:25:250:25:31

Tom has achieved an impressive renovation,

0:25:310:25:34

but even with his connections, I wonder if his original budget was washed down the plug hole.

0:25:340:25:41

When we put the £10,000 budget together,

0:25:410:25:44

that was with a view to renting the property out.

0:25:440:25:47

I haven't got, to be honest with you, I don't know exactly how much

0:25:470:25:51

has been spent on it, but it was probably more like 40 or 50.

0:25:510:25:54

A bit of an overspend there, then.

0:25:550:25:57

When developing, it's important not to get too deeply involved in a property,

0:25:570:26:01

if you spend too much you may lose the shirt off your back.

0:26:010:26:05

But in Tom's case, his new home is his passion.

0:26:050:26:08

So, will this love affair last?

0:26:080:26:12

I'm happy living here for the time being.

0:26:120:26:16

Obviously things change, but for now, you know,

0:26:160:26:19

I like being here and I don't have any plans to sell.

0:26:190:26:21

I'm not surprised, but with the renovation costs at £50,000

0:26:240:26:27

added to his purchase price of 130,000,

0:26:270:26:33

Tom's total spend is around £180,000.

0:26:330:26:37

Time for two local estate agents

0:26:370:26:39

to give their verdict on the restoration.

0:26:390:26:42

First impressions are fantastic, totally bowled over,

0:26:430:26:46

it's a magnificent house.

0:26:460:26:47

You know, the finish and the neutral tones,

0:26:470:26:50

the nice pastels that he's picked are really nice.

0:26:500:26:53

First impressions - the owner's done an excellent job

0:26:530:26:55

of combining the original fabric with the finish that works.

0:26:550:26:58

By making the ground floor more open-plan, it's got a more contemporary feel to it.

0:26:580:27:04

I think this property will sell well, it's got the wow factor.

0:27:040:27:07

As soon as you walk in, you fall in love with it.

0:27:070:27:09

Has that "wow factor" come at a price?

0:27:110:27:13

Remember, Tom spent around £180,000.

0:27:130:27:17

What sort of resale figure could he achieve?

0:27:170:27:21

In terms of value,

0:27:210:27:22

I think the owner's done everything he can to maximize the resale,

0:27:220:27:26

but it's unlikely to return above the £200,000 mark.

0:27:260:27:28

If we were to put this property on the market, I would start asking £220,000.

0:27:280:27:33

I'm happy with either but, as you know,

0:27:330:27:35

I'm not here to sell it anywhere, so it doesn't have a massive impact.

0:27:350:27:39

Quite a difference in estimates there,

0:27:390:27:42

but even if Tom got the lower value,

0:27:420:27:45

he could still make £20,000 pre-tax profit. What about rental?

0:27:450:27:50

Looking at the rental market, this should let very well at £700 per calendar month.

0:27:500:27:55

If we put this property up for rent,

0:27:550:27:56

you'd be able to get £700 per calendar month.

0:27:560:27:59

Well, if I ever did want to move to a different house, you know,

0:27:590:28:02

I'd rather keep hold of houses rather than sell them, so that's interesting to know.

0:28:020:28:06

Those sort of returns could give Tom just under a 5% yield.

0:28:060:28:11

But for now, he's focusing on enjoying his new home

0:28:110:28:15

and hasn't let that big spend overshadow the experience.

0:28:150:28:21

Yeah, I've really enjoyed myself. It's been a lot of hard work,

0:28:210:28:24

but I would certainly consider doing it in the future.

0:28:240:28:28

Well, there's one investment strategy,

0:28:310:28:33

which says you should buy property within close proximity of water.

0:28:330:28:37

Well, that works for the property I'm here to see

0:28:370:28:40

because it's just three miles away from the marina here in Southampton.

0:28:400:28:44

Today's property is in Bitterne village.

0:28:470:28:49

It's a popular residential area with good schools, shops,

0:28:490:28:52

and easy access into the centre of Southampton

0:28:520:28:55

with its bars and entertainment area around the harbour.

0:28:550:29:00

Well, although the location ticks the boxes,

0:29:000:29:03

the kind of property isn't really in most investors' top-five choices,

0:29:030:29:08

because it's a bungalow.

0:29:080:29:10

Now I personally love bungalows, I was born in one.

0:29:100:29:13

They were brought over from India in the 1920s,

0:29:130:29:15

the first ones appeared in London and they spread across the country.

0:29:150:29:19

Nowadays, developers don't like them

0:29:190:29:21

because they don't make the most of the space they sit on.

0:29:210:29:24

However, ones like this... You've got to say, it's got character.

0:29:240:29:28

The bungalow was guided at £140,000 and certainly looks inviting

0:29:280:29:34

with its fairytale turret and red-and-black chequered brickwork,

0:29:340:29:38

which has obviously seen better days.

0:29:380:29:40

The bow front seems to have had some movement,

0:29:400:29:42

but this just seems to add to the unusual charm of the place.

0:29:420:29:46

OK, I wonder if the internal layout is as quirky as the outside.

0:29:460:29:52

Well, on the face of it, no, it all seems to make sense.

0:29:520:29:54

We've got rear sitting room or dining room leading to kitchen, two bedrooms,

0:29:540:29:58

bathroom and toilet, and then through

0:29:580:30:01

into the front sitting room, the living room area, I suppose.

0:30:010:30:04

But... Oh, boy! What's that?!

0:30:040:30:06

HE LAUGHS

0:30:060:30:08

Now, no prizes here for guessing what...

0:30:080:30:12

Oh, my goodness gracious.

0:30:120:30:13

THAT is a perfect, perfect example of woodworm.

0:30:130:30:21

You can see the holes, but by the time it gets to this stage,

0:30:210:30:25

the beetles, which were burrowing their way through the wood have left, leaving powdered wood.

0:30:250:30:30

Now you don't know how far that goes, but...

0:30:300:30:33

..that could be quite serious.

0:30:340:30:36

Clearly, have this whole place treated

0:30:360:30:38

and there's going to be a lot of floorboards that need replacing.

0:30:380:30:42

So, not a good start.

0:30:440:30:46

Up in the loft, someone has gone to the trouble

0:30:460:30:49

of attempting an attic conversion,

0:30:490:30:51

but they shouldn't have bothered - it's dark, dingy and cramped.

0:30:510:30:55

But at least the potential's there.

0:30:550:30:58

Well, not a bad-size bedroom, and lots of light pouring in,

0:31:010:31:04

but if you're nervous or suspicious about walking under ladders,

0:31:040:31:08

this really isn't ideal -

0:31:080:31:09

the stairs up to that bodged job of an attic conversion.

0:31:090:31:12

But through here to, I guess, the rear sitting room,

0:31:120:31:16

a nice old fireplace, which you could probably have some fun with,

0:31:160:31:20

but some odd doorways out to various other parts of the property.

0:31:200:31:23

And then through to the biggest problem

0:31:230:31:25

with this particular bungalow, which is the kitchen.

0:31:250:31:28

I think it's in a bit of an extension,

0:31:280:31:30

not a particularly nice job. It's clearly totally lacking.

0:31:300:31:34

I'd think about maybe extending the bungalow out

0:31:340:31:37

because you need to get a better working area in this place

0:31:370:31:40

and I don't see how you could do it with the space there is.

0:31:400:31:43

Outside there is some of that space available,

0:31:430:31:45

so that's a pretty good option.

0:31:450:31:47

At the bottom of the untidy garden there's a timber garage that just might need replacing.

0:31:470:31:55

But despite its rundown, dishevelled appearance, this bungalow does have character and individuality.

0:31:550:32:00

All it needs is some careful attention to make it a lovely home.

0:32:000:32:06

So at a guide price of £140,000,

0:32:080:32:10

what does a local estate agent make

0:32:100:32:14

of this little two-bed in Southampton?

0:32:140:32:18

First impressions of this property -

0:32:180:32:20

unusual bungalow, very attractive from the outside.

0:32:200:32:23

Obviously, you notice it needs a fair bit of work doing to it.

0:32:230:32:27

There are numerous rooms, all of which are quite small,

0:32:270:32:30

so it might lend itself to being opened out, extended really.

0:32:300:32:33

Once this bungalow was renovated and enlarged,

0:32:330:32:36

what market could it be aimed at?

0:32:360:32:39

I think, possibly, your target buyer is somebody that's downsizing,

0:32:390:32:42

particularly the older generation,

0:32:420:32:45

even though the types of buyer have changed over the years.

0:32:450:32:48

But you do get quite a vast demand for them depending on time of year.

0:32:480:32:52

Given its guide price of 140 grand, would an extensive renovation be worthwhile?

0:32:520:32:59

The resale value for this property extended,

0:32:590:33:02

you're probably looking in excess of £200,000.

0:33:020:33:05

If they did a really good job they might be able to touch on around £225,000.

0:33:050:33:10

And the rental returns?

0:33:100:33:12

Rental valuation for this property per calendar month is around £800.

0:33:120:33:16

Well, it's not without its problems, but you know what?

0:33:210:33:24

I really like this little bungalow.

0:33:240:33:26

Yes, you'd have to sort out that bowing in the front wall and treat it for woodworm,

0:33:260:33:31

but get the planning permission for the extension of the kitchen,

0:33:310:33:34

and you've got a lovely little home here.

0:33:340:33:36

Let's find out who fell in love with it at the auction.

0:33:360:33:39

Lot number eight,

0:33:440:33:46

£125,000 is the asking start-point.

0:33:460:33:50

125, gentleman in the blue jumper, thank you. 125, I have got.

0:33:500:33:56

Is there £126,000 in the room?

0:33:560:33:59

There is. Thank you, madam, 126.

0:33:590:34:02

Now back at 127, sir.

0:34:020:34:03

There's a nod at 127.

0:34:030:34:05

Now looking for 128.

0:34:050:34:07

128 is bid.

0:34:070:34:08

129, thank you. Now looking for 130.

0:34:080:34:11

Shake of the head.

0:34:110:34:12

I have 129 on my right-hand side,

0:34:120:34:15

now looking for 130 from somewhere else.

0:34:150:34:18

130, the lady does, chatting to her husband, 130. 131?

0:34:180:34:23

131 is bid. 132?

0:34:230:34:25

132,000. Sir, 133?

0:34:250:34:30

133 he does.

0:34:300:34:32

Back to you, madam, 134,000. 135?

0:34:320:34:38

134,500? No? Shaking his head. It's with you, madam, at £134,000.

0:34:380:34:41

New bidder, thank you, at the back.

0:34:410:34:45

134,500.

0:34:450:34:46

135, madam?

0:34:460:34:48

135,000. Last chance to you, sir, if not, I'm selling.

0:34:480:34:53

£135,000, then.

0:34:530:34:55

Once, 135 twice...

0:34:550:34:59

135,000 for the third and the final time.

0:34:590:35:03

Well done.

0:35:030:35:04

The successful bidders were Julie and her partner Tor.

0:35:040:35:09

They got the bungalow for 135,000, 5,000 below its guide price which was pretty good going.

0:35:090:35:17

Julie's a former education and charity-sector worker who now trades on the Norwegian stock exchange.

0:35:170:35:24

I met up with her to find out about their plans.

0:35:240:35:28

-Julie, congratulations.

-Thank you.

0:35:280:35:30

You've got a sweet little bungalow, haven't you?

0:35:300:35:33

-It is a sweet little bungalow.

-Why did you want to buy it?

0:35:330:35:36

We liked the look of it and we hadn't seen it before we bought it,

0:35:360:35:39

but we like the look of it. We...

0:35:390:35:41

How do you mean? You haven't seen it...

0:35:410:35:43

I know that's breaking the rules, but we... We did it.

0:35:430:35:46

We won't do it a second time, but we liked the look of it and it was going at a good price

0:35:460:35:50

and we knew the area it was in, so we decided that we would buy it.

0:35:500:35:54

The look of it from what? From the picture in the catalogue?

0:35:540:35:57

From the catalogue, that's all we knew at the time.

0:35:570:35:59

And luckily, very luckily, it's actually a good buy.

0:35:590:36:03

So, at what point did you decide you were going to buy it?

0:36:030:36:06

-During the auction.

-Actually during the auction?

0:36:060:36:09

Yes, yes.

0:36:090:36:10

We had been looking at another property, which came on later,

0:36:100:36:13

but when this one came up

0:36:130:36:14

and we realised the price, we thought it was a good buy.

0:36:140:36:17

So, did you read the legal pack?

0:36:170:36:19

Nope.

0:36:190:36:21

So you not only didn't visit, but you didn't know anything about its legal status.

0:36:210:36:26

This is breaking all of the rules and I know it's not what you should do,

0:36:260:36:29

and it's not we will do a second time, but this time we did, yeah.

0:36:290:36:33

Why?

0:36:330:36:35

I think we just...got carried away on the enthusiasm of the day,

0:36:350:36:39

and we did like the look of it and we did know the area,

0:36:390:36:42

so there were some positives in there.

0:36:420:36:45

And we knew the price range of the area.

0:36:450:36:47

But we know that by doing that, we put ourselves in line

0:36:470:36:50

for some really unpleasant surprises, which luckily haven't materialised.

0:36:500:36:54

We, sort of... We've got what we expected with it, so that's OK.

0:36:540:36:59

# This could be my lucky day... #

0:36:590:37:03

Breaking all those auction-buying rules and getting away with it.

0:37:030:37:07

While she and her Norwegian partner, Tor,

0:37:070:37:10

may have got lucky with their impromptu buying strategy,

0:37:100:37:14

they do at least have a plan for their next step.

0:37:140:37:17

We have a plan over four or five years to do several houses,

0:37:170:37:20

to sell them on and then, actually to arrive at a point

0:37:200:37:23

where we will have the house that we want to stay in.

0:37:230:37:26

And that might take a little bit longer

0:37:260:37:28

if the market freezes for a while, but it's still the same plan.

0:37:280:37:31

But for the present their immediate plan

0:37:310:37:35

is to renovate the entire bungalow. Including - new windows, electrics,

0:37:350:37:39

plumbing and kitchen.

0:37:390:37:41

And the bathroom.

0:37:420:37:44

By extending into the garden,

0:37:440:37:46

they hope to enlarge the bungalow's footprint

0:37:460:37:49

from 65 to 100 square metres.

0:37:490:37:51

This would allow them to reconfigure the layout of the rear

0:37:510:37:54

and put a proper staircase up to that loft room.

0:37:540:37:57

All good news so far until...

0:37:570:38:01

We will need to take out the front bay window,

0:38:010:38:03

the circular bay window, because that's bulging, rebuild that.

0:38:030:38:07

Very probably, I think, take that opportunity to change the turret and have a conventional roof.

0:38:070:38:14

That's still in the pot, but we think probably that will go.

0:38:140:38:18

Don't get rid of the turret.

0:38:180:38:20

Everybody loves the turret, but it's whether anybody would buy the house with the turret.

0:38:200:38:25

You bought it from the picture.

0:38:250:38:26

-True.

-And the turret was part of the picture.

0:38:260:38:29

We'll wait and see.

0:38:290:38:31

I may have got a reprieve for the turret here,

0:38:320:38:34

but it looks like Julie has taken a practical approach to solve the problems.

0:38:340:38:38

The pair have a budget of 50 grand, which seems reasonably healthy,

0:38:380:38:43

but there is one big issue to be resolved, the woodworm.

0:38:430:38:47

What are you going to do about them?

0:38:480:38:50

Strip out the floorboards, replace them, have the joists checked carefully.

0:38:500:38:54

If the joists are damaged too, then sadly, they would have to come out.

0:38:540:38:58

We're hoping that that's not the case, and the first opinion

0:38:580:39:01

from our structural person is that that isn't the case,

0:39:010:39:05

but we don't have a definite on that yet.

0:39:050:39:07

We've got a little bit of subsidence going on up there too.

0:39:070:39:11

Have you had a structural survey done now?

0:39:110:39:13

Yes. It's settlement rather than subsidence, and we are on clay here,

0:39:130:39:18

and a bungalow built in 1931 would have quite shallow foundations.

0:39:180:39:22

It's not collapsed drains, which is good news.

0:39:220:39:24

We are taking off this back part of the house anyway,

0:39:240:39:27

so we'll be able to treble check that.

0:39:270:39:29

We will have to, obviously,

0:39:290:39:31

build that back of the house on stronger foundations

0:39:310:39:34

and possibly underpin the door, the front door,

0:39:340:39:37

put blocks under there to underpin it.

0:39:370:39:40

And that, we hope, will actually solve the problem.

0:39:400:39:44

Well, perhaps all of that 50 grand budget will be needed.

0:39:440:39:48

They plan to do the work themselves and aim to finish in six months,

0:39:480:39:51

though something tells me that could be rather tight.

0:39:510:39:54

We'll go for lots of natural light, opening it out, lots of light colours, making it comfortable,

0:39:540:40:00

clean, Scandinavian, you know, nice design which will be attractive.

0:40:000:40:07

-Well, good luck with it and look after it, it's a lovely place.

-Thank you.

0:40:070:40:12

So, Julie breaking all the rules buying this place -

0:40:120:40:16

not only not visiting it, but also not reading the legal pack.

0:40:160:40:21

However, she might have got away with it,

0:40:210:40:23

she's got herself a lovely bungalow.

0:40:230:40:25

Some ambitious plans, I just hope the turret stays.

0:40:250:40:29

Find out how she gets on later in the show.

0:40:290:40:32

Time has passed, have our buyers kept to their schedule or have they overrun?

0:40:350:40:39

Have the stuck to their budget or has money just slipped through their fingers?

0:40:390:40:44

Ha-huh! It's time to find out.

0:40:440:40:45

It was just outside Maidstone, Kent, in the village of Larkfield,

0:40:450:40:50

where we first met architect, Pete, and his builder mate, Mark.

0:40:500:40:54

For their first business venture together,

0:40:540:40:57

they'd just bought a rather dilapidated bungalow for £193,000.

0:40:570:41:02

It also had the bonus of a potential building plot behind it.

0:41:020:41:06

-We bought this, primarily, knowing there was no profit in it.

-Mmm.

0:41:080:41:12

The profit's in the back garden, where, hopefully,

0:41:120:41:14

we'll get planning and that's where we'll make money.

0:41:140:41:17

In essence, this was a two-stage project.

0:41:180:41:21

The first stage meant doing up the bungalow

0:41:210:41:24

while trying to get planning permission to develop the plot at the back.

0:41:240:41:27

Seven months on, where have they got to?

0:41:270:41:32

Well, there's definitely been massive progress on the bungalow

0:41:320:41:35

with a dormer extension added in the roof,

0:41:350:41:38

new windows, doors and a lawned front garden.

0:41:380:41:43

And inside? Well, the rooms have been modernised

0:41:460:41:50

and the new decor creates a less boxy feel.

0:41:500:41:54

And they've opened up some areas, most noticeably in the kitchen.

0:41:570:42:02

Well, I don't know if you remember when you was here last time, there was actually a wall here.

0:42:050:42:10

We decided to take it down to open it up into a family room

0:42:100:42:14

or a kitchen/diner, and one of the subtle, little differences

0:42:140:42:18

that no-one really notices

0:42:180:42:19

is we actually moved the door over, for two reasons -

0:42:190:42:22

one, you're having a breakfast bar, so it makes a definite image,

0:42:220:42:26

but also to give you room for a sofa.

0:42:260:42:28

The addition of patio doors now means you can go straight out

0:42:320:42:36

into the small, but adequate, fenced garden.

0:42:360:42:40

The two bedrooms are finished off

0:42:400:42:42

and central heating has been installed.

0:42:420:42:44

So, with a fabulous new bathroom-cum-wet-room,

0:42:460:42:50

downstairs is now complete.

0:42:500:42:52

OK, the changes we made on the first floor -

0:42:520:42:54

firstly, we've created a new bathroom in a dormer roof structure.

0:42:540:42:59

In doing so, this also allowed us

0:42:590:43:01

to create an airing cupboard on the opposite side.

0:43:010:43:03

The room behind me has more or less stayed the same.

0:43:030:43:06

We introduced a VELUX window which gives lots of natural light into this bigger landing.

0:43:060:43:11

The other thing we did was to shorten the back bedroom.

0:43:110:43:14

The door line used to be here,

0:43:140:43:15

but we've moved it back onto this line here.

0:43:150:43:18

In the back bedroom, we just decorated,

0:43:180:43:20

we re-plastered the whole thing.

0:43:200:43:22

We also rationalised the storage space,

0:43:220:43:24

which gives storage space so it would be great for families and children.

0:43:240:43:28

I think the addition of the bathroom on this floor,

0:43:280:43:31

along with the skylight, now really makes the space work.

0:43:310:43:35

You can see that the whole bungalow has been re-jigged to maximize and enhance the living space.

0:43:350:43:40

It shows both good design and build qualities.

0:43:400:43:44

We've both played the roles that I guess are our backgrounds.

0:43:440:43:47

He's an architect, um, he's not very hands-on.

0:43:470:43:51

I've also done my best to roll my sleeves up

0:43:510:43:53

and get involved with the build itself.

0:43:530:43:55

There's a few times he's like, "Why don't we do this?"

0:43:550:43:58

I'm like, "No, why don't we do this?"

0:43:580:44:00

And he's like, "Oh, yeah."

0:44:000:44:01

But I think that's why the partnership's worked well

0:44:010:44:04

because we do have different knowledge fields, and collectively,

0:44:040:44:08

have a good span of knowledge.

0:44:080:44:09

These guys really have combined their skills,

0:44:090:44:13

the A-Team of property development.

0:44:130:44:15

So, having successfully completed their first mission

0:44:170:44:20

and got the bungalow sorted,

0:44:200:44:21

what about that possible development at the back?

0:44:210:44:24

With regards to the plot of land, we've, sort of, been advised

0:44:240:44:28

that it's better to keep it as a piece of land

0:44:280:44:30

that doesn't have planning permission on it

0:44:300:44:33

to the point where we sell this property.

0:44:330:44:35

After talking to the agents, they've all said, "Flats, flats, flats, flats."

0:44:350:44:40

A scheme, which we've taken to the planners -

0:44:400:44:42

a five, one-bed apartment block on the land

0:44:420:44:44

And the block would resemble a pair of semis in truth,

0:44:440:44:47

with four in the main body of the property and one in the roof.

0:44:470:44:51

They're not opposed to it, but there will be hurdles.

0:44:510:44:53

So it's still in the balance, and at present, there's no certainty

0:44:550:44:59

that Pete's plan will ever make it off the drawing board.

0:44:590:45:02

Can they afford for it to fail?

0:45:020:45:05

Our original budget was about £30,000.

0:45:050:45:08

We're currently more like, sort of, mid-60s at the moment.

0:45:080:45:12

But we've done a lot more - we planned to come in here and just decorate,

0:45:120:45:16

we bought it for the land out back,

0:45:160:45:18

so we could turn this one round quickly,

0:45:180:45:20

but there were so many options to turn it from a bungalow into a family home.

0:45:200:45:25

They paid £193,000 for both the bungalow and the land

0:45:250:45:30

and have spent a further £65,000 on the bungalow.

0:45:300:45:34

With costs, this means their total outlay is about £260,000.

0:45:340:45:39

So can the bungalow alone recoup the investment?

0:45:390:45:42

What do two local estate agents think?

0:45:420:45:44

I think the changes that have been made to the property are pretty exceptional,

0:45:460:45:50

considering what it was like when I first visited.

0:45:500:45:53

The changes to upstairs and to include the downstairs bathroom

0:45:530:45:57

and upstairs shower room was very wise.

0:45:570:45:59

I love it. They've completed the works to a very high standard

0:45:590:46:02

and it looks really good.

0:46:020:46:03

So, encouraging comments,

0:46:030:46:06

but will that translate into a healthy end-value

0:46:060:46:09

after Pete and Mark's investment of around £260,000 here.

0:46:090:46:14

This property could resell for around £275,000.

0:46:140:46:19

In the present market,

0:46:190:46:20

I would consider this property would sell at £250,000.

0:46:200:46:24

At 250, you know, that would still be acceptable.

0:46:240:46:29

We'd still come out of it with a cheap piece of land to build.

0:46:290:46:31

Yes, that's good, they're around break-even point before a brick's been laid.

0:46:310:46:36

But if they can get the five-apartment plan approved,

0:46:360:46:40

what kind of profit could they hope for?

0:46:400:46:42

If they got planning permission for apartments,

0:46:460:46:48

I'd expect they'd be able to get about five apartments built.

0:46:480:46:52

Um, one-beds, of which I would expect them to command a sale price of around about £100,000 to £120,000.

0:46:520:46:59

We would like to think that if we could get five on there,

0:46:590:47:03

there would be two that were a pure profit,

0:47:030:47:06

which would be one each.

0:47:060:47:07

And we have said that we would probably...

0:47:070:47:10

If we could walk away with one property each,

0:47:100:47:13

we would keep them ourselves and rent them

0:47:130:47:16

and then re-mortgage them to buy our next piece of land,

0:47:160:47:20

so we'd have a constant money source for us.

0:47:200:47:22

If that all works they would both be in a good position

0:47:220:47:26

to invest in another project together and keep the business partnership going.

0:47:260:47:31

So is that the plan?

0:47:310:47:32

Yeah. No, I think the experience so far has been a very positive one for both of us.

0:47:340:47:39

Almost life-changing, certainly financially, and to just give us another direction in life.

0:47:390:47:45

Without a doubt, it's brilliant.

0:47:450:47:48

# It's a new dawn

0:47:480:47:49

# It's a new day

0:47:490:47:51

# It's a new life

0:47:510:47:53

# For me

0:47:530:47:56

# And I'm feeling good... #

0:47:560:47:58

And if they feel good now, just imagine what it will be like

0:47:580:48:02

if they get that all-important planning permission.

0:48:020:48:06

We're back in Southampton after nearly 18 months

0:48:140:48:17

to see how first-time developers, Tor and Julie,

0:48:170:48:21

fared renovating their two-bedroom bungalow.

0:48:210:48:25

They bought it for £135,000, but hadn't seen the property

0:48:250:48:29

or done any homework on it before the auction.

0:48:290:48:32

-So you not only didn't visit the property, but you didn't know anything about its legal status?

-No.

0:48:320:48:38

This is breaking all of the rules and I know it's not what you should do.

0:48:380:48:41

Now, outside the most stark, and in my view saddest, change

0:48:410:48:47

is the loss of the turret with its gorgeous bay window.

0:48:470:48:51

It's been replaced by a conventional pitched roof.

0:48:510:48:54

# Give me one good reason... #

0:48:540:48:56

The turret in itself was literally falling down

0:48:580:49:03

so I could have kicked the walls out.

0:49:030:49:06

And there was no foundations under it, so...it just had to go.

0:49:060:49:12

# Yeah, we're just waiting

0:49:120:49:14

# For the hammer to fall, yeah... #

0:49:140:49:16

The solution has taken away some of the charm of this house,

0:49:170:49:21

but I can understand the reasoning behind it.

0:49:210:49:24

It's been up to Tor to wield his mighty hammer

0:49:260:49:28

and almost single-handedly undertake all the repair work.

0:49:280:49:32

There are still two rooms at the front, which have been re-plastered

0:49:370:49:41

and both sets of windows have been replaced.

0:49:410:49:45

Around the back, the property has been hugely extended.

0:49:450:49:49

When we first bought it, it was virtually derelict,

0:49:510:49:55

it was small, it hadn't really had anything done to it for a long time.

0:49:550:49:59

The garden was completely overgrown,

0:49:590:50:01

there was a derelict garage in the garden as well.

0:50:010:50:04

Our plans expanded as we...

0:50:040:50:05

At first we were just going to go for a fairly small extension

0:50:050:50:09

and maybe add about 25% on,

0:50:090:50:11

but then we realised that we would make more of the house

0:50:110:50:15

if we went for larger, so we've double the house and more,

0:50:150:50:19

it's now 110 square metres.

0:50:190:50:21

We've added on a large extension at the back which provides living, kitchen and dining,

0:50:210:50:25

and then we've changed around all the inside, haven't we?

0:50:250:50:29

-Yes. All the rooms have been altered so nothing is where it used to be before.

-Mmm.

0:50:290:50:35

It has been a major job, yes.

0:50:350:50:37

Where there were smaller individual rooms

0:50:380:50:41

branching off a cramped corridor,

0:50:410:50:43

there is now this huge, bright open interior space.

0:50:430:50:47

Tor and Julie have tried to bring a taste of Scandinavian luxury

0:50:480:50:53

to the south coast of England.

0:50:530:50:55

And I'm pretty sure that bath won't be staying there.

0:50:550:50:59

Their vision is clear to see -

0:51:000:51:01

they've set about creating a unique and spacious open-plan living area.

0:51:010:51:08

One of the rooms that warranted serious modernisation was the kitchen,

0:51:100:51:15

this is now part of the extension.

0:51:150:51:17

Well, we are now in the extension

0:51:190:51:23

and the extension has actually doubled the size of the house

0:51:230:51:30

and it's the extension that we are the most proud of.

0:51:300:51:32

Contemporary look, we really enjoy it, we like it a lot.

0:51:320:51:37

We have the new kitchen units,

0:51:370:51:40

we have the open-space living room/dining room.

0:51:400:51:45

It has come together exactly how we wanted it to and we are very proud of it.

0:51:450:51:51

One of the more unique aspects of this development

0:51:540:51:57

is that the property is now, effectively, a two-storey bungalow.

0:51:570:52:01

There's been considerable development upstairs in the loft.

0:52:020:52:06

Tor and Julie plan for this to become a third bedroom with space for an en-suite wet room.

0:52:060:52:12

It will add something extra to the bungalow.

0:52:150:52:17

I think we've achieved the Scandinavian feel.

0:52:170:52:20

It's very open-plan, this large extension is very open-plan.

0:52:200:52:23

The rest of the house, too, has that feel to it, or it will when it's finished -

0:52:230:52:28

it will be very modern, very contemporary.

0:52:280:52:30

Their initial plan was to turn the renovation around in six months,

0:52:300:52:34

but here we are nearly a year and a half later, so what happened?

0:52:340:52:39

The reason why we made it such a big job

0:52:390:52:42

was that we went for permitted development at first,

0:52:420:52:47

then we realised that it just doesn't work,

0:52:470:52:51

so we decided to go for planning and this is what we ended up with.

0:52:510:52:56

# Problems Problems

0:52:570:53:00

# Pro-oh-oh-oh-blems... #

0:53:000:53:02

Some parts of this property needed urgent attention,

0:53:040:53:07

for instance - the floorboards eaten away by woodworm.

0:53:070:53:11

Tor's solution to that is very simple.

0:53:110:53:15

We will just take out absolutely every single floorboard

0:53:150:53:20

and we will just redo the joists.

0:53:200:53:23

Put in new joists and just get rid of it that way.

0:53:230:53:26

Even with the savings made thanks to Tor's handyman endeavours,

0:53:260:53:31

the costs must have spiralled well beyond their initial estimate of 50,000.

0:53:310:53:37

We will come in on around 100,000, yeah.

0:53:370:53:43

-When it's finished.

-When it's finished, yeah.

0:53:430:53:45

The roof with the skylights, that is probably close to 10,000, yeah.

0:53:450:53:52

They bought the house for £135,000.

0:53:530:53:57

So with the projected redevelopment budget of 100,000, that's a lot of ground to catch up.

0:53:570:54:03

We invited two local estate agents around to give us their opinions.

0:54:030:54:08

This is my second time to the property.

0:54:110:54:13

It is a complete transformation. Obviously, it's an ongoing project,

0:54:130:54:18

but it's good to see that it's moving ahead.

0:54:180:54:20

A few subtle changes here and there -

0:54:200:54:22

I've noticed that the circular bay to the front of the property has gone

0:54:220:54:26

which is a disappointment because I thought that was a nice feature.

0:54:260:54:29

Looking around, the property is fantastic,

0:54:290:54:32

although it's not completely finished.

0:54:320:54:34

I think, just looking at what they've planned -

0:54:340:54:37

I think they've utilised the space really, really well,

0:54:370:54:40

the finish and the spec looks really good, lots of light.

0:54:400:54:43

I think they've done a fantastic job.

0:54:430:54:45

Once this is fully renovated I think the property will probably have a value of around £250,000.

0:54:450:54:51

If we were to put this on for sale,

0:54:510:54:54

I'd like to see it on between £240,000 and £250,000.

0:54:540:54:58

That would be our minimum.

0:54:580:55:00

Yeah, that would be our minimum. We would not make a huge profit on that,

0:55:000:55:03

but this hasn't really been that much about making a huge profit,

0:55:030:55:08

this has been about learning how to do this and I'm pleased with that.

0:55:080:55:13

Once completed, this house could still generate some profit for the couple.

0:55:140:55:19

What if they were to try renting it?

0:55:190:55:22

Once fully renovated, I think it has a rental valuation of around £900 per calendar month.

0:55:220:55:28

Once completed, I think rental value-wise,

0:55:280:55:31

we would probably put it on the market

0:55:310:55:34

at around £900 to £950 per calendar month.

0:55:340:55:36

I don't think, at the moment, we're considering renting

0:55:360:55:39

because the finish will be very high standard, won't it?

0:55:390:55:42

Yeah. We haven't really made any definite decisions about that,

0:55:420:55:46

but it doesn't look as if we are going for the rental market.

0:55:460:55:50

We will stay in it ourselves for a little while and then we'll sell it on.

0:55:500:55:54

Tor and Julie plan to move into the house within the next three weeks and finish off the remaining work.

0:55:560:56:02

What are their thoughts on the project now it's nearing completion?

0:56:020:56:06

Recently, I've started to feel quite proud about it

0:56:060:56:10

and I have enjoyed working, I've enjoyed doing the work.

0:56:100:56:14

-We're tired but we're not burned out.

-No, not at all.

0:56:140:56:17

I've played more of a supporting role,

0:56:170:56:19

but still, it's been the two of us as a team and I'm proud of it,

0:56:190:56:23

I think we've produced a good house.

0:56:230:56:25

I think it's well designed, well built,

0:56:250:56:27

people are going to be happy living here in the future

0:56:270:56:30

and I think that's...

0:56:300:56:31

Yeah, we've put our stamp on this, haven't we?

0:56:310:56:34

-Yes, we have.

-And that's a good thing.

0:56:340:56:35

That's it, but don't despair, there is plenty more out there.

0:56:370:56:41

Yes, so join us next time for more Homes Under The Hammer.

0:56:410:56:44

-Goodbye.

-Goodbye.

0:56:440:56:46

Subtitles by Red Bee Media Ltd

0:56:540:56:57

Martin Roberts and Lucy Alexander visit a mid-terrace house in Derby, a bungalow in Kent and a quirky property in Southampton. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.