0:00:02 > 0:00:03Hello. Despite the property market downturn,
0:00:03 > 0:00:08auctions are still a popular place for buyers and sellers in the UK.
0:00:08 > 0:00:12That's right. Buyers track down vendors looking for quick sales.
0:00:12 > 0:00:17But given that the average auction lot takes just three minutes to sell, you've got to keep your nerve
0:00:17 > 0:00:21and your wits about you when you buy your home under the hammer.
0:00:46 > 0:00:50We all love a bargain, but none more so than those who buy at auction.
0:00:50 > 0:00:54And with a room full of prospective buyers it can get pretty tense in there.
0:00:54 > 0:00:58So let's check out the bargains that got snapped up on today's show.
0:01:00 > 0:01:04Things are really starting to heat up at this house in Derby.
0:01:04 > 0:01:08What is all this black? It looks like there's been some fire damage.
0:01:10 > 0:01:13I'll be travelling back in time to this property in Cardiff.
0:01:13 > 0:01:18A little bit stuck in the '60s, with the old wood-chip wallpaper and these funny old curtains.
0:01:19 > 0:01:23And I'll be in Wadebridge, Cornwall,
0:01:23 > 0:01:25trying to dig up some ideas for this old quarry.
0:01:25 > 0:01:29What could you do with this apart from having it maybe as a set for a James Bond movie?
0:01:31 > 0:01:33All these properties sold at auction.
0:01:33 > 0:01:37We'll find out who bought them and what they paid for them.
0:01:37 > 0:01:39It's yours, sir. Thank you very much.
0:01:42 > 0:01:45The Amber Valley in Derbyshire.
0:01:45 > 0:01:47Gorgeous it is, too.
0:01:47 > 0:01:52I'm on the outskirts of Westhouses, that's where the property that went up for auction is located.
0:01:52 > 0:01:57An ex-miner's cottage, so that sounds very appealing.
0:01:57 > 0:02:02'In fact, the whole area around here is an ex-mining community.
0:02:02 > 0:02:08'A lot of the properties date from the 1800s, and are old miner's cottages.
0:02:08 > 0:02:12'So, with that history in mind, let's see what I can dig up today.'
0:02:12 > 0:02:17# Workin' in a coalmine Goin' down, down, down... #
0:02:17 > 0:02:21As miner's cottages go, this sounds pretty good.
0:02:21 > 0:02:23It's three-bedroomed, end of terrace.
0:02:23 > 0:02:26I like that, especially...
0:02:26 > 0:02:29when you've got views like that right by the side of it.
0:02:29 > 0:02:31But I haven't told you the best bit yet.
0:02:31 > 0:02:36The guide price was just 32,000 quid.
0:02:36 > 0:02:38'Yes, you heard me right.
0:02:38 > 0:02:41'A three-bedroomed house for a guide price of just 32 grand.
0:02:41 > 0:02:45'But that lovely red brick exterior hides a possible reason
0:02:45 > 0:02:48'why that's such a relatively low price.'
0:02:48 > 0:02:50# Fire
0:02:50 > 0:02:52# I'll take you to burn... #
0:02:55 > 0:02:59So, for that kind of money, your expectations are set fairly low.
0:02:59 > 0:03:05But - you will be surprised, cos straight in here, not a bad-sized sitting room.
0:03:05 > 0:03:07The first thing I see is, what's all this black?
0:03:07 > 0:03:09It looks like there's been some fire damage.
0:03:09 > 0:03:13That could be why it's got such a low price. Stairs going up there.
0:03:13 > 0:03:18Before I move on to that, fire damage can cause all sorts of issues, not least the electrics,
0:03:18 > 0:03:20the floor joists and all that stuff.
0:03:20 > 0:03:23So you want to have that checked out. But it's a good-sized room.
0:03:23 > 0:03:26Through into the rear kind of sitting room area...
0:03:26 > 0:03:29Kind of strange corridor leading out to the back door,
0:03:29 > 0:03:33and this wall, which to me seems a complete waste of a wall.
0:03:33 > 0:03:36Get rid of that, increase the size of this room. It's already quite big.
0:03:36 > 0:03:40It's got things like a real fire in here, which is nice to see.
0:03:40 > 0:03:42But with that wall gone, it would be a great room.
0:03:42 > 0:03:46The one letdown, as far as I can see straight away, is this.
0:03:46 > 0:03:50The kitchen, and then onwards to the bathroom and loo.
0:03:50 > 0:03:52As you can see, in a right old state.
0:03:52 > 0:03:55But spend a bit of money, think about reconfiguring a little bit,
0:03:55 > 0:03:59and you've got yourself a really great property - for that money!
0:03:59 > 0:04:04'Many people would be put off by the amount of dust, dirt and grime,
0:04:04 > 0:04:06'and especially that smoke damage in the front rooms.
0:04:06 > 0:04:11'But I reckon most of that is superficial, caused by those open fireplaces.'
0:04:11 > 0:04:15# Sometimes you just get caught where the smoke blows... #
0:04:15 > 0:04:21'Upstairs, I discovered a lot more to get my passion ignited.'
0:04:21 > 0:04:23Upstairs, a bit of a surprise.
0:04:23 > 0:04:26Three really good-sized bedrooms.
0:04:26 > 0:04:28One there, one there and then,
0:04:28 > 0:04:31the best of all, this one. Look at the height of the ceilings.
0:04:31 > 0:04:34And just the size of the room, really nice.
0:04:34 > 0:04:36Lots of light pouring in through the windows.
0:04:36 > 0:04:39It looks like it's in a real state, but you know what?
0:04:39 > 0:04:43Yeah - the paperwork is a bit shoddy,
0:04:43 > 0:04:46but it's not going to take much to sort that out. And at least it's not wood-chip!
0:04:47 > 0:04:50'This house has really got me excited.
0:04:50 > 0:04:54'Not only has it got plenty of room, lovely views
0:04:54 > 0:04:57'and bags of potential, it's also got a tempting guide price
0:04:57 > 0:04:58'of just £32,000.'
0:04:58 > 0:05:03'But I wondered what a local property expert would make of it,
0:05:03 > 0:05:06so I asked the auctioneer who sold it.'
0:05:08 > 0:05:10This property is quite unusual,
0:05:10 > 0:05:14not in terms of its layout but in terms of what's here now.
0:05:14 > 0:05:17It's grubby, it's dirty. It needs refitting.
0:05:17 > 0:05:19So, in a sense, it's good auction material.
0:05:19 > 0:05:25If you simply renovate what's here, it actually doesn't entail a lot of expenditure.
0:05:25 > 0:05:28It doesn't look good, but a lot of it is cosmetic.
0:05:28 > 0:05:32It's got potential to it. Clearly, money does need to be spent on it.
0:05:32 > 0:05:39You can make it into a perfectly desirable small house, and you can do that at reasonable cost.
0:05:39 > 0:05:43With that potential in mind - once work has been done here,
0:05:43 > 0:05:47what could it be worth on the resale market?
0:05:47 > 0:05:55I don't think on today's market, renovated, you would put this up for sale at a price exceeding £79,950.
0:05:55 > 0:05:57That's a decent profit -
0:05:57 > 0:06:00depending, of course, on how much was spent here.
0:06:00 > 0:06:04It looks like it already has some occupants in the roof.
0:06:04 > 0:06:09So, how much would the rest of this property make if rented out?
0:06:09 > 0:06:14When renovated, I think this will have a rental value of about £450 a calendar month.
0:06:16 > 0:06:20Well, if you don't see this as an appealing proposition, then I ain't taught you nuttin'.
0:06:20 > 0:06:23It's a great little house in a good location.
0:06:23 > 0:06:25Potential for rental - well, that's brilliant.
0:06:25 > 0:06:29A bit of sorting out to do, but overall, for that guide price, an absolute winner.
0:06:29 > 0:06:32Let's see who spotted it when it went to the auction.
0:06:32 > 0:06:35Lot number 51. Where do you want to be on this, ladies and gentlemen?
0:06:35 > 0:06:3736 is bid, by the bar.
0:06:37 > 0:06:40At 36,000. 37 at the back.
0:06:40 > 0:06:4237. 38.
0:06:42 > 0:06:4439. At 39.
0:06:44 > 0:06:4840,000 with me on a proxy bid. At 40,000.
0:06:50 > 0:06:5341 is bid. At 41, puts the proxy out at 41.
0:06:53 > 0:06:57At 41. 42, 44 down the centre.
0:06:57 > 0:06:59At 44, 45.
0:06:59 > 0:07:0145,000.
0:07:01 > 0:07:0345,500.
0:07:03 > 0:07:0546 is bid. 46,500, sir?
0:07:05 > 0:07:0646,500.
0:07:06 > 0:07:0847.
0:07:08 > 0:07:1147,500? At 47,000.
0:07:11 > 0:07:1547,500. 47,500. 48?
0:07:15 > 0:07:17No.
0:07:17 > 0:07:2047,500 here. 48, a fresh bidder.
0:07:20 > 0:07:2248,500? 49?
0:07:23 > 0:07:2649. 49,500.
0:07:26 > 0:07:2850,000.
0:07:28 > 0:07:3050,000.
0:07:30 > 0:07:32And a half again. 50,500.
0:07:32 > 0:07:3451? 51...?
0:07:34 > 0:07:37It's against you at 50,500. 51.
0:07:37 > 0:07:3951,500.
0:07:39 > 0:07:4152? 52.
0:07:41 > 0:07:4352,500.
0:07:43 > 0:07:4553?
0:07:45 > 0:07:4952,500. 53 elsewhere?
0:07:49 > 0:07:52At 52,500, then - going once...
0:07:52 > 0:07:54going twice... Third time?
0:07:54 > 0:07:57Sold at 52,500, thank you.
0:07:57 > 0:08:01'That final bid of £52,500 came from Lucy.
0:08:05 > 0:08:11'Lucy's a nutritionist for a pet food company, and she bought this house with her builder husband Matt
0:08:11 > 0:08:14'to extend their property portfolio.
0:08:14 > 0:08:18'They've lived in Derby for 11 years, and have a two-year-old daughter.
0:08:18 > 0:08:22'I caught up with Lucy to find out about her renovation plans.'
0:08:22 > 0:08:25- Lucy, lovely to meet you. - Nice to meet you.- Congratulations.
0:08:25 > 0:08:30Before we talk about the house, I've got to say, I understand that your maiden name was Alexander?
0:08:30 > 0:08:36- Absolutely.- So you were Lucy Alexander?- I did. I modelled myself right on your co-presenter.
0:08:36 > 0:08:37Fantastic.
0:08:37 > 0:08:39So, have you watched the show?
0:08:39 > 0:08:41- Oh, since about day one. - Really? Fantastic.
0:08:41 > 0:08:45- So we inspired you in some way, did we?- Absolutely, yes.
0:08:45 > 0:08:47How was the auction?
0:08:47 > 0:08:50Nerve-racking. Oh, nerve-racking. Nail-biting.
0:08:50 > 0:08:53I've bought horses at auction. That's easy, compared to buying a house.
0:08:53 > 0:08:58I think we thought we were going to get it round about the 50 mark, but it went up a bit longer.
0:08:58 > 0:09:01So, yeah. Very terrifying.
0:09:01 > 0:09:03What do you feel about what you paid?
0:09:03 > 0:09:07We're happy. We kind of thought it would go between 50 and 55,
0:09:07 > 0:09:10judging by the other properties in the area. So, yeah, we're pleased.
0:09:10 > 0:09:1252,500's not too bad.
0:09:12 > 0:09:15'It's 20 grand over the guide price, though.
0:09:15 > 0:09:19'But, in my opinion, still a great buy at that price.
0:09:19 > 0:09:22'However, remember it will need a lot spent on the renovation -
0:09:22 > 0:09:26'particularly to sort out that smoke damage.'
0:09:26 > 0:09:29What's been damaged, as far as you're aware? Are you concerned?
0:09:29 > 0:09:31We're not particularly concerned.
0:09:31 > 0:09:35The chap who we bought the house from had actually started to repair
0:09:35 > 0:09:37the house, so we know it's in quite good order.
0:09:37 > 0:09:42It's just unfortunate that the redecoration needs to occur in the front half of the house.
0:09:42 > 0:09:44- It had already started in the back. - Right.
0:09:44 > 0:09:47So things like the electrics, were they sorted out?
0:09:47 > 0:09:49- Yeah, that's all been done.- OK.
0:09:49 > 0:09:51We're fairly confident.
0:09:51 > 0:09:55But you never know what you're going to find until you start these things.
0:09:55 > 0:09:57We're not novices, we've done it before.
0:09:57 > 0:10:00- How many times have you done it before?- Only once.
0:10:00 > 0:10:02Cos you're talking like you are
0:10:02 > 0:10:05Miss Property Developer, really!
0:10:05 > 0:10:07It's all a facade.
0:10:07 > 0:10:10Thought you were going to say, "Oh, this is our 50th."
0:10:10 > 0:10:12This is the second. But we're hoping it's a string of many.
0:10:12 > 0:10:18'This may be only Lucy and husband Matt's second property in their portfolio,
0:10:18 > 0:10:23'but they sound confident about the plans for the renovation work here.'
0:10:23 > 0:10:27Well, I think to start with we're going to get the new doors and windows ordered.
0:10:27 > 0:10:31We're going to get this wall out here. Get the gas connected.
0:10:31 > 0:10:36Then we're going to have a serious look and see what the roof's like, cos it's not in a great condition.
0:10:36 > 0:10:40And order a kitchen and bathroom and then just...go at it, I think.
0:10:40 > 0:10:43- That's the idea.- So what kind of budget have you got set aside?
0:10:43 > 0:10:45Well, we reckon 10 to 15's quite safe.
0:10:45 > 0:10:49We're hoping 10, but obviously 15 gives you a bit of contingency.
0:10:49 > 0:10:51And a timescale for the work?
0:10:51 > 0:10:54We hope to have it rented out within,
0:10:54 > 0:10:57probably being realistic, about five to six months.
0:10:57 > 0:11:01'But that budget and timescale could have been massively affected
0:11:01 > 0:11:06'if the property had turned out to be even more damaged than it first looked.
0:11:06 > 0:11:12'It didn't help that they hadn't even seen inside the property before they bought it.'
0:11:12 > 0:11:15Well, we hadn't actually looked inside this house before we bought it.
0:11:15 > 0:11:18- Why?- We did read the legal pack.
0:11:18 > 0:11:23- Well...- But we hadn't looked in because it just happened to catch my eye at work
0:11:23 > 0:11:26and we didn't have time before the auction.
0:11:26 > 0:11:29So we'd looked at the outside, and we'd spoken to the neighbours.
0:11:29 > 0:11:32It was actually a pleasant surprise when we realised how big it was.
0:11:32 > 0:11:37- So, who's going to do the work? - Well, not me, obviously! That's a husband's job.
0:11:37 > 0:11:41No, it'll be a team effort. But it'll be weekend working, really, because we both work full time.
0:11:41 > 0:11:45Right. But you're not going to get contractors in, it's you and your husband?
0:11:45 > 0:11:51- No, it's me and my husband and potentially some family members roped in as and when.- Right.
0:11:51 > 0:11:54Well, listen, lovely to meet you, Lucy. Good luck with it.
0:11:54 > 0:11:56- We'll see how you get on. - Thank you very much.
0:11:56 > 0:12:00So, Lucy's namesake, before she was married, well on her way
0:12:00 > 0:12:04to becoming a successful property developer just like OUR Lucy.
0:12:04 > 0:12:06A few hurdles in the way with this one, though.
0:12:06 > 0:12:09I'm particularly worried about that roof.
0:12:09 > 0:12:11Once you start digging into those tiles,
0:12:11 > 0:12:14all manner of problems might be unearthed.
0:12:14 > 0:12:16How is she going to get on? You can find out later in the show.
0:12:19 > 0:12:21This is the River Taff in Cardiff.
0:12:21 > 0:12:26OK, so it's not the most picturesque stretch of the river, but it's getting better.
0:12:26 > 0:12:29Besides, everybody loves a river view.
0:12:29 > 0:12:33And who can argue with only a five-minute walk to the city centre?
0:12:35 > 0:12:38'This area of Cardiff is known as Grangetown,
0:12:38 > 0:12:41'and it sits downstream from the Millennium Stadium.
0:12:41 > 0:12:44'It's had a bad image over the years,
0:12:44 > 0:12:46'but it now attracts young professionals,
0:12:46 > 0:12:50'as it's so close to town and the fast-redeveloping riverside.'
0:12:50 > 0:12:56# I love sitting down by the riverside
0:12:57 > 0:13:02# Watching the water go flowing by... #
0:13:02 > 0:13:06So, steps from the water is the property I'm here to see.
0:13:06 > 0:13:09No river views, but it sounds like quite a stunner.
0:13:09 > 0:13:14It's described in the catalogue as a spacious, stone-built house with character.
0:13:14 > 0:13:15And so it is.
0:13:15 > 0:13:20Wow! It's got six bedrooms and a guide of only 175,000 grand.
0:13:20 > 0:13:22I can't wait to explore.
0:13:23 > 0:13:26'It's a grand old wedding cake of a building,
0:13:26 > 0:13:30'iced with gothic Victorian details, with vast proportions.
0:13:30 > 0:13:35'Quite something from the outside, but will the inside be as sweet?'
0:13:37 > 0:13:41Now, I know that somebody lived in this house for 30 years,
0:13:41 > 0:13:42so I'm expecting dated.
0:13:42 > 0:13:46But, you know, sometimes with that you get a house that's untouched.
0:13:46 > 0:13:49And by the looks of things, it hasn't been touched.
0:13:49 > 0:13:52I mean, look at that beautiful cornicing up there.
0:13:52 > 0:13:54Oh, and look!
0:13:54 > 0:13:58Now that is amazing!
0:13:58 > 0:14:02You know, I'd say that there are Minton tiles all the way down this hallway.
0:14:02 > 0:14:07It's absolutely beautiful, although somebody has just sploshed a load of old white paint everywhere.
0:14:07 > 0:14:10Now, look at this. The banister, going upstairs.
0:14:10 > 0:14:12This newel post is taller than me.
0:14:12 > 0:14:14That's a really lovely thing to see.
0:14:14 > 0:14:17So far, some gorgeous features.
0:14:17 > 0:14:20Let's have a look around in the lounge.
0:14:21 > 0:14:24'OK, so the decor hasn't been updated here
0:14:24 > 0:14:27in a good 30-odd years, I'd say.
0:14:27 > 0:14:30'But the space in these reception rooms is huge,
0:14:30 > 0:14:33'and those grand bay windows really make the place bright.
0:14:33 > 0:14:37'But I would update this '60s fireplace in here.
0:14:37 > 0:14:39'And that goes for the one in the living room
0:14:39 > 0:14:42'on the other side of the house, too.
0:14:42 > 0:14:45'Through that serving hatch is a disappointing kitchen
0:14:45 > 0:14:47'in desperate need of a livening-up.
0:14:47 > 0:14:50'As is the ground floor bathroom just down the corridor.
0:14:50 > 0:14:54'I'm not sure if that suite is called pea green or avocado -
0:14:54 > 0:14:57'but either way, it's really got to go.'
0:14:57 > 0:15:00So let's have a look up here on the first floor.
0:15:00 > 0:15:04We've got a separate toilet and a bathroom on this sort of half-landing.
0:15:04 > 0:15:09And up these stairs, four really, really good-sized bedrooms.
0:15:09 > 0:15:12Now, you can see it's a little bit stuck in the '60s
0:15:12 > 0:15:15with the old wood-chip wallpaper and these funny old curtains.
0:15:17 > 0:15:20'Up here, there are even more of those '60s fireplaces.
0:15:20 > 0:15:22'But they aren't the only source of heat,
0:15:22 > 0:15:24'as there's central heating throughout.
0:15:24 > 0:15:26'So, one less job to tackle.
0:15:27 > 0:15:30'Upstairs on the third floor there are two generous double bedrooms.
0:15:30 > 0:15:35'However, the old gas lamps suggest there may be more work to do
0:15:35 > 0:15:38'under the plaster and wood-chip to update the pipes.
0:15:38 > 0:15:41'This could be an amazing family house,
0:15:41 > 0:15:44'but you'd need a family the size of the Von Trapps to fill it.
0:15:44 > 0:15:48'I'm not sure it would give as good a return if just kept as one unit.'
0:15:48 > 0:15:53You know, it's a massive house, in an area that families don't necessarily favour.
0:15:53 > 0:15:57So how about turning it into individual letting rooms?
0:15:57 > 0:16:01It would then become a house of multiple occupancy, or HMO,
0:16:01 > 0:16:04so you would have regulations to adhere to.
0:16:04 > 0:16:07But you already have two good-sized bathrooms,
0:16:07 > 0:16:11and I think the rental returns could make it really worth your while.
0:16:11 > 0:16:15'And if the buyer wanted an even larger project,
0:16:15 > 0:16:18'around the back there's a whole yard of extra room.'
0:16:19 > 0:16:25So, out the back you've not got so much a rear garden as a collection of garages -
0:16:25 > 0:16:27but also the beginnings of an idea.
0:16:27 > 0:16:31Just look at the size of next door's extension. It's huge!
0:16:31 > 0:16:35I think the real potential here lies in extending the space
0:16:35 > 0:16:37and splitting this house into separate flats.
0:16:37 > 0:16:41Now, property conversions can be expensive and they can be tricky to plan.
0:16:41 > 0:16:46But I reckon you could get as many as five units here with an extension that size.
0:16:46 > 0:16:49And, of course, the fact this is an end-of-terrace,
0:16:49 > 0:16:52with bags of options for separate access,
0:16:52 > 0:16:57means that this house has made your job much, much simpler. I like it.
0:16:57 > 0:17:00# That's how you like it, huh That's how you like it, huh... #
0:17:00 > 0:17:05'If you think I've written off this house as a single unit, well, you'd be right.
0:17:05 > 0:17:08'But what does a local property expert think?
0:17:08 > 0:17:12'I asked one along to hear what he thinks the options are here.'
0:17:18 > 0:17:22It's a grand old house, it's got lovely features. It's tired.
0:17:22 > 0:17:25Obviously in the past it's been occupied as one family unit.
0:17:26 > 0:17:29Any prospective buyer of this property has got two main options.
0:17:29 > 0:17:34Firstly, to consider the prospect of renovating it to a family home.
0:17:34 > 0:17:38But unfortunately, I don't think the resale value would be there.
0:17:38 > 0:17:45The greater prospect, and thus where the real capital return will arise, is if it's converted into flats.
0:17:46 > 0:17:49'In fact, he doesn't think that even after renovation
0:17:49 > 0:17:54'it would sell for much more than its guide price of 175,000.
0:17:55 > 0:18:00'So, what could it make if each room were rented out individually?'
0:18:00 > 0:18:09I'd predict that the rental market, let's say for room let, would be £250 per room, per calendar month.
0:18:09 > 0:18:14For flats, two beds would equate to about £550 per month.
0:18:14 > 0:18:17A one bed, at £450 per month.
0:18:17 > 0:18:19So, there's excellent potential rental income.
0:18:20 > 0:18:25Once a grand home for a family, this house no longer suits its surroundings.
0:18:25 > 0:18:28Its days as one dwelling must surely be over.
0:18:28 > 0:18:32Time to split it up, and move in those young professionals.
0:18:32 > 0:18:35Whoever does that could see a tidy profit.
0:18:35 > 0:18:38Let's see who spotted it at the auction.
0:18:39 > 0:18:44Lot number 11, what am I bid for this one? Can't I see £170,000?
0:18:44 > 0:18:48All right, there's 160. It's a start, sir, but it's not enough.
0:18:48 > 0:18:51160. Is that 70? Thank you, madam.
0:18:51 > 0:18:53At 170 I'm bid.
0:18:53 > 0:18:56All right, 2. Thank you, fresh bidder, 172.
0:18:56 > 0:18:59At 172...and 5, if you like now?
0:18:59 > 0:19:03At £172,000... 5, can I?
0:19:03 > 0:19:05Shout if I'm missing you.
0:19:05 > 0:19:085, thank you, sir. At 175.
0:19:08 > 0:19:12At 175,000 there with the catalogue, right in the back.
0:19:12 > 0:19:15At 175,000 is your bid.
0:19:15 > 0:19:17Are you coming back in as well, sir?
0:19:17 > 0:19:19I really thought there'd have been a lot of hands.
0:19:19 > 0:19:21Can't I see another one?
0:19:21 > 0:19:25The bid is in the back, at £175,000.
0:19:25 > 0:19:27Have you done? Is it another one?
0:19:27 > 0:19:31At £175,000...
0:19:31 > 0:19:33It's yours, sir. Thank you very much.
0:19:33 > 0:19:38'That successful bid of £175,000 was from Cardiff man Will.
0:19:39 > 0:19:40'He works in the building trade,
0:19:40 > 0:19:44'and already manages four other properties alongside his brother.
0:19:44 > 0:19:49'In fact, we featured Will on the show before, when he bought his first property.
0:19:49 > 0:19:55'We caught up with him back at this house to hear about the plans for his latest venture.'
0:19:56 > 0:19:59# So have a nice day... #
0:19:59 > 0:20:04Will, congratulations. It wasn't hard to spot you at the auction with your superhero T-shirt.
0:20:04 > 0:20:05That's me, yeah.
0:20:05 > 0:20:09- Are you pleased with your purchase? - Very pleased. It's a nice big house.
0:20:09 > 0:20:12- You jumped in with that price right at the end.- It was only one bid.
0:20:12 > 0:20:17That's all it took. And I was keen to get in at the 175, that was my idea.
0:20:17 > 0:20:20After that you've got the stamp duty, the psychological threshold.
0:20:20 > 0:20:24- How much more would you have gone? - I had in my head a figure of 181.
0:20:24 > 0:20:27- That was my top.- Whoa.- So there was a bit more movement in me,
0:20:27 > 0:20:30but I was very pleased to have it at the 175.
0:20:30 > 0:20:34Although the auctioneer was very keen to get some extra bids out,
0:20:34 > 0:20:35he was cajoling the crowd a fair bit.
0:20:35 > 0:20:38I was very pleased when no-one else put their hand up.
0:20:38 > 0:20:42I know you're no newcomer to this, because Martin's met you before.
0:20:42 > 0:20:44That's right, a couple of years ago.
0:20:44 > 0:20:47- So you've obviously been very busy. - I have indeed.
0:20:47 > 0:20:53Since then, my brother and I now have four places that we rent out.
0:20:53 > 0:20:55So, we filmed with Martin at the first one,
0:20:55 > 0:20:58and since then we've had two more and now we have this one.
0:20:58 > 0:21:04'And it's not just his property portfolio he's built up since the last time we saw him.'
0:21:04 > 0:21:09Life's changed a fair bit since I last met the Homes Under The Hammer team. I have a family now.
0:21:09 > 0:21:15- Hooray!- The lady who was my girlfriend the last time is now my fiancee, I'm pleased to say.
0:21:15 > 0:21:17And we have a little girl, an addition to the family.
0:21:17 > 0:21:21- Congratulations. - Skye Elizabeth is now 14 months old.
0:21:21 > 0:21:24She's a handful. She's all over the place, running around
0:21:24 > 0:21:28and starting to talk now. There's been a lot of change in life.
0:21:29 > 0:21:34'Although Skye Elizabeth would have hours of fun playing in such a big house,
0:21:34 > 0:21:37'Will doesn't intend to make this property their family home.'
0:21:39 > 0:21:42So Will, what sort of ideas have you got for this property?
0:21:42 > 0:21:44It lends itself well to being split into flats.
0:21:44 > 0:21:48The central staircase up the middle with rooms coming off the side makes it ideal.
0:21:48 > 0:21:50But that does take money, obviously.
0:21:50 > 0:21:55A quicker solution would be to rent out rooms in the place, which I have done before.
0:21:55 > 0:21:57That would bring in some money a bit quicker,
0:21:57 > 0:22:01and perhaps we can think about possibly turning it into flats in the future.
0:22:01 > 0:22:04Now, that's a house of multiple occupancy,
0:22:04 > 0:22:06and you've got lots of regulations to adhere to.
0:22:06 > 0:22:09Which sometimes can be quite difficult,
0:22:09 > 0:22:12it can prove to be quite a tiresome job.
0:22:12 > 0:22:17- I know there's lists and lists of regulations with certain councils. - I've been in touch with the council.
0:22:17 > 0:22:22They've given me a list of what they would require if was to be turned into an HMO.
0:22:22 > 0:22:26I'm happy that I can achieve all of those standards, and make it
0:22:26 > 0:22:28a nice place to live for a whole bunch of people.
0:22:29 > 0:22:32'It sounds like Will really has done his homework -
0:22:32 > 0:22:36'always vital when taking on a building like this to turn into an HMO.
0:22:36 > 0:22:42'Will estimates the work will take between two and three months, and cost around £10,000 to £15,000.
0:22:42 > 0:22:46'He will do most of the work, along with his own team of builders.
0:22:46 > 0:22:50'He has a budget of around £15,000.
0:22:50 > 0:22:54'Now, I was curious to find out how sympathetic the renovation was going to be
0:22:54 > 0:22:56'to those lovely period features.'
0:22:56 > 0:22:59Let's talk about the original features. You've got my favourite,
0:22:59 > 0:23:02Minton tiles in the hallway. This beautiful cornicing...
0:23:02 > 0:23:05- There's cornicing throughout. - That stunning staircase.
0:23:05 > 0:23:08- Please tell me you're keeping them. - It's all going to go.
0:23:08 > 0:23:11No, I'm joking. It's all going to stay.
0:23:11 > 0:23:14Listen, you can by all means get rid of these old fireplaces,
0:23:14 > 0:23:17but I want to see those beautiful hallway tiles intact.
0:23:17 > 0:23:18The tiles will be staying.
0:23:18 > 0:23:23Unfortunately, I did have a quick peek under the carpet and they do stop just around the stairs,
0:23:23 > 0:23:27so I'm going to have some sort of transition. But I'll certainly keep what I can.
0:23:27 > 0:23:31'Mmm - I think I made my feelings clear on that subject.
0:23:31 > 0:23:34'But I can't wait to see what Will does with the renovation.'
0:23:34 > 0:23:38It's so lovely to catch up with Will - his career is storming along
0:23:38 > 0:23:41and the houses are getting bigger and bigger.
0:23:41 > 0:23:45I think his ideas for the HMO are sound, but that budget is tight
0:23:45 > 0:23:48and he needs to get those rooms filled quick-smart.
0:23:48 > 0:23:51Find out how he gets on later on in the programme.
0:23:53 > 0:23:58Coming up, I discover some potential at this old quarry in Cornwall.
0:23:58 > 0:24:02It's already got planning permission approved - but not for a house.
0:24:02 > 0:24:04Back at this house in Cardiff,
0:24:04 > 0:24:08the renovation work wasn't as simple as it appeared.
0:24:08 > 0:24:10All the roofs were leaking.
0:24:10 > 0:24:14There was rot in some of the timbers, which have had to be replaced.
0:24:15 > 0:24:20But first - in Derbyshire everybody's been lending a hand.
0:24:20 > 0:24:22Amazing what a two-year-old can do with a paintbrush.
0:24:27 > 0:24:31We're returning to Derbyshire, to this three-bedroomed ex-miner's cottage.
0:24:31 > 0:24:35It sold at auction for £52,500,
0:24:35 > 0:24:37and the winning bidders were husband and wife
0:24:37 > 0:24:41and part-time property developing team Lucy and Matt.
0:24:41 > 0:24:45It needed more than a quick vacuum and once-over with a duster,
0:24:45 > 0:24:48but it sounded like Lucy had already been delegating responsibility.
0:24:50 > 0:24:55- So who's going to do the work? - Well, not me, obviously. That's a husband's job.
0:24:55 > 0:24:59No, it'll be a team effort. But it'll be weekend working because we both work full-time.
0:24:59 > 0:25:03Handily, Matt's day job is as a builder.
0:25:03 > 0:25:05So, how did he get on with the work?
0:25:05 > 0:25:07We caught up with the project seven months later.
0:25:07 > 0:25:11Let's hope it isn't just the seasons that have changed.
0:25:11 > 0:25:15Unfortunately, Matt couldn't make it for filming
0:25:15 > 0:25:17so it was Lucy, a pet food nutritionist,
0:25:17 > 0:25:21who was going to show us if they were barking up the wrong tree
0:25:21 > 0:25:24or were they more like cats that got the cream.
0:25:36 > 0:25:39So, since you were last here we've completely renovated it
0:25:39 > 0:25:41top to bottom on the inside.
0:25:41 > 0:25:44We've taken the wall out between the kitchen and the hall.
0:25:47 > 0:25:51We've created a small utility room instead of the old kitchen.
0:25:51 > 0:25:56We've put in a log burner, full new central heating system, rewired.
0:25:56 > 0:25:59Carpets, the lot, really.
0:25:59 > 0:26:00New windows as well.
0:26:00 > 0:26:05On top of all that, they've ripped out that grimy old bathroom
0:26:05 > 0:26:08and fitted a swish modern suite instead.
0:26:10 > 0:26:14Baths will certainly will be more pleasant and relaxing now.
0:26:16 > 0:26:18Lucy and Matt have a two-year-old daughter.
0:26:18 > 0:26:22So, how has this project fitted in around family life
0:26:22 > 0:26:24and, of course, their full-time work?
0:26:24 > 0:26:28Juggling things to try and get work done at the weekends has been difficult.
0:26:28 > 0:26:31But we've got a good support network of mother-in-laws
0:26:31 > 0:26:34and things like that. So we've had childcare covered.
0:26:34 > 0:26:35Lucy's been up helping as well.
0:26:35 > 0:26:38It's amazing what a two-year-old can do with a paintbrush.
0:26:38 > 0:26:41Matt has done all the work on the house himself -
0:26:41 > 0:26:44with a little help from Lizzie, of course.
0:26:44 > 0:26:48So, the budget for the renovation has stayed well within their target.
0:26:48 > 0:26:52We said we reckoned between £10,000 - £15,000 spend.
0:26:52 > 0:26:55So far we've spent 10, which we're quite pleased at.
0:26:55 > 0:26:58But we've still got a little bit to do outside.
0:26:58 > 0:27:02We need to do the car parking space, deck the back and guttering.
0:27:02 > 0:27:07We've probably got maybe another £1,000 spend, maybe a little bit more.
0:27:07 > 0:27:09But we're pleased with how the budget's gone.
0:27:09 > 0:27:11All fine on the budget front, then.
0:27:11 > 0:27:14But how much value have Lucy and Matt added to the property?
0:27:16 > 0:27:20We asked along two local estate agents to tell us what they thought.
0:27:20 > 0:27:23Our first impressions of the property,
0:27:23 > 0:27:25they've made a good job of it. Nice, neutral colours.
0:27:25 > 0:27:28Nice clean kitchen, all very good.
0:27:28 > 0:27:30As a refurbishment to a 100-year-old-property,
0:27:30 > 0:27:32this has brought it up to date nicely.
0:27:34 > 0:27:36The downstairs layout is very good.
0:27:36 > 0:27:39They've moved the kitchen into what was the dining room,
0:27:39 > 0:27:43created an open space that they can also eat in, as well as prepare the food.
0:27:43 > 0:27:46So it's made a much better, bigger kitchen.
0:27:46 > 0:27:50You've still got a good-sized lounge, utility room and bathroom.
0:27:50 > 0:27:52The bathroom fixtures are nice. The tiling works well.
0:27:52 > 0:27:57The kitchen looks the part, so people coming in will appreciate it.
0:27:57 > 0:27:59I like the fact it's located on the end.
0:27:59 > 0:28:03You've got the open views out of the window, lovely rural views.
0:28:03 > 0:28:05That would be my favourite point of the property.
0:28:05 > 0:28:10So, once all the work's finished, what could they sell the place for?
0:28:10 > 0:28:15Remember, Lucy and Matt reckon they'll spend around £11,000 on the renovation.
0:28:15 > 0:28:18Added to their purchase price of £52,500,
0:28:18 > 0:28:23that is a total of around £63,500 invested here.
0:28:23 > 0:28:28Looking at sale, it's probably going to fetch somewhere between £75,000 and £80,000.
0:28:28 > 0:28:32I would put it on the market at £75,000.
0:28:32 > 0:28:35It seems a little bit low.
0:28:35 > 0:28:37Obviously, with the property market the way it is,
0:28:37 > 0:28:40it's not far off really what we'd expected.
0:28:40 > 0:28:42That's one of the reasons why we'll rent it.
0:28:42 > 0:28:44That's still a healthy pre-tax profit
0:28:44 > 0:28:47of around £11,500 to £16,500 before deductions.
0:28:47 > 0:28:52But Lucy and Matt decided to rent it out instead.
0:28:52 > 0:28:54What could they earn from that?
0:28:54 > 0:28:58On the rental market, I would offer it at £400 per calendar month.
0:28:58 > 0:29:03For rental, £395 per month is what they're likely to receive.
0:29:03 > 0:29:05I'm quite surprised at that.
0:29:05 > 0:29:09We've had quite a few bits of interest already at £550.
0:29:09 > 0:29:13Again, with the way the economic market is at the moment, we'll just wait and see.
0:29:13 > 0:29:17A shrewd move in these uncertain times.
0:29:17 > 0:29:21Once this has been rented, they'll be at auctions looking for their next project.
0:29:21 > 0:29:26It sounds like Lucy has certainly got the property developing bug.
0:29:26 > 0:29:27We're really pleased.
0:29:27 > 0:29:31I think the transformation of the property is amazing.
0:29:31 > 0:29:33We love it.
0:29:33 > 0:29:36We hope that whoever moves in loves it too.
0:29:49 > 0:29:56I'm in Wadebridge, five miles up the River Camel from fashionable Padstow.
0:29:56 > 0:29:59It's a pretty little Cornish market town with,
0:29:59 > 0:30:03we hope, some interesting property bargains.
0:30:03 > 0:30:07Wadebridge is one of north Cornwall's main market towns
0:30:07 > 0:30:10and is surrounded by gorgeous countryside.
0:30:10 > 0:30:12There's lots of new property development
0:30:12 > 0:30:14going on which is always a good sign.
0:30:14 > 0:30:19So, although the old bridge crosses the River Camel,
0:30:19 > 0:30:23I hope the property I've come to see won't give me the hump.
0:30:23 > 0:30:29So, just two minutes' walk outside the town centre, will we find a bargain?
0:30:29 > 0:30:30The price is certainly right.
0:30:30 > 0:30:34The guide was £28,000.
0:30:34 > 0:30:40But the project, and it's a project rather than a property, is rather unusual.
0:30:46 > 0:30:48Wow!
0:30:57 > 0:31:00Well, you weren't expecting that, were you?
0:31:00 > 0:31:05Who'd have thought you'd find such a lost world behind those metal gates?
0:31:05 > 0:31:08In case you hadn't guessed, it is an old quarry.
0:31:08 > 0:31:12It's only small, but pretty dramatic.
0:31:12 > 0:31:16What could you do with this, apart from having it as a set for a James Bond movie?
0:31:16 > 0:31:19Well, you'll be interested to know that it's already got
0:31:19 > 0:31:23planning permission approved - but not for a house.
0:31:25 > 0:31:29The sun gets blocked out by those high cliff faces.
0:31:29 > 0:31:32I wonder if there's any loose rubble up there.
0:31:32 > 0:31:36I really don't think this is an ideal place for a house anyway.
0:31:38 > 0:31:41I looked at the approved plans
0:31:41 > 0:31:44to see what could be built here instead.
0:31:44 > 0:31:49The plans that have been approved are for ten lock up garages.
0:31:49 > 0:31:51Wait until you see the plans.
0:31:51 > 0:31:55Here's the edge of the quarry here and here are the different garages.
0:31:55 > 0:31:59You can see there's in total, six smaller ones and four larger ones.
0:31:59 > 0:32:02Actually, very clever use of space.
0:32:02 > 0:32:05A bit of work required cutting into the rock face here and also here.
0:32:05 > 0:32:09But apart from that, really making the most of what space there is.
0:32:09 > 0:32:13So, why garages? There's a real demand for them round here.
0:32:13 > 0:32:16There's a new development up the road that could use them.
0:32:16 > 0:32:19There's a commercial development across the way.
0:32:19 > 0:32:20Garages will always be popular,
0:32:20 > 0:32:25not only for people to store their cars, but as a place to put junk.
0:32:34 > 0:32:37So, garages for storage or cars.
0:32:37 > 0:32:39And maybe even workshops.
0:32:39 > 0:32:43It's a great idea to be able to help this unused ground
0:32:43 > 0:32:46turn over a new leaf and maybe even make some money in the long run.
0:32:46 > 0:32:51But is there anything else you could do with this land that would be more fruitful?
0:32:51 > 0:32:54So, what could you do with this place?
0:32:54 > 0:32:57Well, maybe a house. I don't know.
0:32:57 > 0:32:59Would it be to anyone's cup of tea living in a quarry?
0:32:59 > 0:33:02Maybe not. How about building some kind of warehouse,
0:33:02 > 0:33:05storage facility or something like that?
0:33:05 > 0:33:07That is an option. But this idea of garages,
0:33:07 > 0:33:10you know what, I think that is the right option.
0:33:10 > 0:33:14A garages is going to cost you about £5,000 to build.
0:33:14 > 0:33:16So you've got ten garages, that's £50,000.
0:33:16 > 0:33:19Let's say you buy this plot for £30,000, that's £80,000.
0:33:19 > 0:33:23I reckon around here you'll be able to rent out a garage for, what, £70 a month?
0:33:23 > 0:33:27That's over £8,000 a year in rent.
0:33:27 > 0:33:29That's over a 10% yield.
0:33:29 > 0:33:31Go with garages!
0:33:31 > 0:33:33The sums add up perfectly to me.
0:33:33 > 0:33:35But what does a local estate agent think?
0:33:35 > 0:33:39I asked one along to take a look.
0:33:39 > 0:33:41To build a house would be pretty much unfeasible.
0:33:41 > 0:33:45You're looking at banks of around 120 feet high surrounding it.
0:33:45 > 0:33:48I can't see anybody really wanting to live underneath that.
0:33:48 > 0:33:53To make money off this plot I would simply say to build each unit
0:33:53 > 0:33:56and either sell them separately, not as one job lot.
0:33:56 > 0:33:59Sell them separately in between £6,000 and £9,000
0:33:59 > 0:34:02as a maximum price for the larger units.
0:34:02 > 0:34:05Or, more advisably, to rent them out on a monthly basis.
0:34:06 > 0:34:09How much could those units rent out for?
0:34:09 > 0:34:14Remember, the plot has plans for two different-sized garages.
0:34:14 > 0:34:16I would estimate the rental figure
0:34:16 > 0:34:20to be within the region of about £50 to £70.
0:34:20 > 0:34:23£50 for the smaller units, £70 for the larger ones per month.
0:34:23 > 0:34:27At first glance, maybe not a project for everyone.
0:34:27 > 0:34:28But, you know what, these garages
0:34:28 > 0:34:32could surprisingly turn out it be a real money earner.
0:34:32 > 0:34:35Big question is, who dug deep in their pockets for this old quarry?
0:34:35 > 0:34:37Let's go to the auction.
0:34:39 > 0:34:42So, who's going to kick us off?
0:34:42 > 0:34:43Who's going to say 20?
0:34:43 > 0:34:46We have 20. You're 22. You're 24.
0:34:46 > 0:34:5024. 26. 28.
0:34:50 > 0:34:5530,000? 30. 31, possibly? That really was your limit, OK.
0:34:55 > 0:34:59At 30,000 on my left hand side once, then. Thank you, sir. 32.
0:34:59 > 0:35:0433? 33. 33, I've got on my left.
0:35:04 > 0:35:06I'll skip by you for a moment. 33.
0:35:06 > 0:35:0934, sir? 34. 35.
0:35:09 > 0:35:12There's a triangle of you. 36, if you like. I'll come back.
0:35:12 > 0:35:14How about 36 there?
0:35:14 > 0:35:1635 is on my left. 35.
0:35:16 > 0:35:19At 35. Half. 35,500, I will in the middle.
0:35:19 > 0:35:24At 35... 36. At 36.
0:35:24 > 0:35:2636 on my left. 36.
0:35:26 > 0:35:28One of two. There's 36.
0:35:28 > 0:35:31At 36 on my left, first time.
0:35:31 > 0:35:36At 36,500. 36,500. 36,500. 37, sir?
0:35:36 > 0:35:3937. At 37. At 37.
0:35:39 > 0:35:41At 37. At 37.
0:35:41 > 0:35:44At 37. At 37.
0:35:44 > 0:35:46Think of all the plans you had.
0:35:46 > 0:35:49At 37 on my left once, then.
0:35:49 > 0:35:54At 37 twice. At 37.
0:35:54 > 0:35:59Half? He does, 37,500. 37,500.
0:35:59 > 0:36:0238, sir? 38.
0:36:02 > 0:36:05At 38. At 38.
0:36:05 > 0:36:08At 38, left has it. At 38 on my left has it, first time.
0:36:08 > 0:36:10Second time. Is there another half?
0:36:10 > 0:36:13Otherwise 38 is going to go on my left hand side. All done?
0:36:13 > 0:36:17Selling then at 38 and done.
0:36:17 > 0:36:1938 and done. Thought I heard a voice, but there we go.
0:36:19 > 0:36:21At 38 and done at that.
0:36:21 > 0:36:24Sir, congratulations. Well done. Sorry gents, hard luck.
0:36:24 > 0:36:29That top bid of 38,000 was made by Gerald.
0:36:29 > 0:36:33He's a retired local farmer.
0:36:33 > 0:36:37I caught up with him back at the quarry to hear about his plans for it.
0:36:50 > 0:36:51Gerald, nice to meet you.
0:36:51 > 0:36:54- And you, Martin.- Congratulations, you bought a quarry.
0:36:54 > 0:36:56Yes, it looks a bit like that.
0:36:56 > 0:36:59Are you into geology, fossils and all that? Not at all.
0:36:59 > 0:37:06I'm just a retired pig farmer that decided to take on another kind of challenge, really.
0:37:06 > 0:37:09Wow, that's a bit of a shift of job.
0:37:09 > 0:37:11Just a bit. Yep. Yep.
0:37:11 > 0:37:13I thought, "Well, let's do something
0:37:13 > 0:37:16"totally different to stop myself getting bored."
0:37:16 > 0:37:22So, I bought a hole in the ground, really. Simple as that.
0:37:22 > 0:37:24What was it that appealed about this hole in the ground?
0:37:24 > 0:37:30I'd just sold a pig unit and I thought the cash in the bank is, like, 0% interest.
0:37:30 > 0:37:34So I thought if I bought a quarry which has planning permission
0:37:34 > 0:37:38for garages, then I could possibly let them out
0:37:38 > 0:37:40and get ten garages in here.
0:37:40 > 0:37:43If you buy a house, you either let the house or you don't.
0:37:43 > 0:37:48With garages I can, you know, I spread my risk a bit more, really.
0:37:48 > 0:37:52- I like your logic. - Cornish logic.- Is it?
0:37:52 > 0:37:57That logic has come in handy for those approved plans, as well.
0:37:57 > 0:38:02Gerald wants to reapply to the council to make the garages a little bigger.
0:38:02 > 0:38:06This would mean more room and maybe make some more money, too.
0:38:06 > 0:38:09But as it is surrounded by quarry walls,
0:38:09 > 0:38:12I wondered how he was going to find that extra space.
0:38:12 > 0:38:15Obviously, this is the gateway.
0:38:15 > 0:38:19What I'm hoping to do is to just make these a bit wider,
0:38:19 > 0:38:22cut back into the cliff a little more there.
0:38:22 > 0:38:25Possibly these just a tiny bit wider that way.
0:38:25 > 0:38:28And the same with these, really. Just to kind of...
0:38:28 > 0:38:31- Inch them out a bit? - Inch them out a bit
0:38:31 > 0:38:34to give people just a bit more room each side of the car.
0:38:34 > 0:38:39But we'd have to keep this turning area so people can drive in,
0:38:39 > 0:38:42- back into the turning area.- Sure.
0:38:42 > 0:38:45It's good, though. It makes good use of the space.
0:38:45 > 0:38:47Yeah, the architect's done well to fit it in.
0:38:47 > 0:38:53Chipping into the quarry wall to get more space is a cracking plan.
0:38:53 > 0:38:56But how much of a hit would the budget have to take?
0:38:58 > 0:38:59So, what about the cost?
0:38:59 > 0:39:03Yeah, we've kind of looked into that just roughly.
0:39:03 > 0:39:07- The builder thought about £25,000 for the ten.- Right.- About £2,500 each.
0:39:07 > 0:39:11So you're looking at about £60,000 by the time you've finished?
0:39:11 > 0:39:14Then we've got to do the site work in the middle.
0:39:14 > 0:39:17Another £20,000 on top.
0:39:17 > 0:39:20So, how much for the whole thing, including buying it?
0:39:20 > 0:39:23Yes, well, you add it up.
0:39:23 > 0:39:2638, 48, 58, 63, 73, 83.
0:39:26 > 0:39:28- £85,000, perhaps.- Right.
0:39:28 > 0:39:32Still, get them all rented out at £60 or £80 a month...
0:39:32 > 0:39:34- Yeah, yeah.- It's still a good return.
0:39:34 > 0:39:38- Could come together.- Who do you suppose will rent these garages?
0:39:38 > 0:39:41Just up the road there's quite a big development of
0:39:41 > 0:39:47retirement homes, a lot of cottages up the road with no garages.
0:39:47 > 0:39:51Some of those might be looking for a garage or storage.
0:39:51 > 0:39:54To me, if you're a retired couple in a flat,
0:39:54 > 0:39:58the gentleman needs somewhere to go to get away from the wife, really.
0:39:59 > 0:40:00You're laughing, but it's true.
0:40:00 > 0:40:04You wouldn't want to be shut up with the old woman all day, would you?
0:40:04 > 0:40:08He could come down here, he could have a tinker in his garage.
0:40:08 > 0:40:11You're providing a social service.
0:40:11 > 0:40:13- Precisely.- Marriage help!
0:40:13 > 0:40:16They'll pay me loads of money just to have a shed to go into.
0:40:16 > 0:40:19How will you advertise that without the wife
0:40:19 > 0:40:21going bonkers when she gets this through the letter box?
0:40:21 > 0:40:23Or maybe she'd be happy?
0:40:23 > 0:40:25Could be. Get rid of him.
0:40:25 > 0:40:26That's a great plan.
0:40:34 > 0:40:37Perhaps that Cornish logic is working overtime.
0:40:37 > 0:40:40But Gerald does seem to have a good idea of what to do with
0:40:40 > 0:40:44the plans and that's vital for his new property developing career.
0:40:44 > 0:40:47But does he ever miss life on the farm?
0:40:47 > 0:40:52No. My family, my son and daughter, weren't interested in the pigs.
0:40:52 > 0:40:54So I said, right, sell that.
0:40:54 > 0:40:57- So there's no SOW-er grapes?- Oh!
0:40:57 > 0:41:00- Sorry!- What a tail!
0:41:00 > 0:41:02I had to get one in there somehow.
0:41:02 > 0:41:04Lovely to talk to you. Good luck.
0:41:04 > 0:41:07- Thank you.- I look forward to seeing how it turns out.
0:41:07 > 0:41:08Yeah, we will.
0:41:10 > 0:41:14So, a very interesting change of direction for Gerald.
0:41:14 > 0:41:18But he's right to stick with the idea of putting garages on this plot.
0:41:18 > 0:41:24Will it be a pig of a job or will it bring home the bacon?
0:41:24 > 0:41:26You can find out later in the show.
0:41:29 > 0:41:33Well, time has passed, several months in fact.
0:41:33 > 0:41:37Have our new owners realised the hopes for their new homes?
0:41:37 > 0:41:40Or have they had to step back and have a radical rethink?
0:41:40 > 0:41:43It's time to go back and find out.
0:41:46 > 0:41:49We're back in Cardiff, just a short walk down the river
0:41:49 > 0:41:55from the Millennium Stadium at this grand old Victorian house.
0:41:55 > 0:41:58It was in need of a brisk renovation to drag it out of the last century.
0:41:58 > 0:42:01But, with eight great-sized rooms and a massive yard
0:42:01 > 0:42:05out the back, this property had plenty of potential.
0:42:05 > 0:42:12It was bought at auction for £175,000 by Will, a local property developer.
0:42:12 > 0:42:14He was hoping to get a good return for his investment by turning it
0:42:14 > 0:42:20into a house of multiple occupancy and renting out all eight rooms.
0:42:20 > 0:42:23It can prove to be quite a tiresome job.
0:42:23 > 0:42:26There's are lists of regulations with certain councils.
0:42:26 > 0:42:29I've been in touch with the council, they've given me a list of
0:42:29 > 0:42:32what they would require if it was to be turned into an HMO.
0:42:32 > 0:42:35I'm happy that I can achieve all of those standards
0:42:35 > 0:42:38and make it a nice place to live for a whole bunch of people.
0:42:38 > 0:42:42And he's well on the way to achieving that.
0:42:42 > 0:42:46Most of the rooms have been replastered and repainted.
0:42:46 > 0:42:52Those old floorboards have been ripped up and replaced with new flooring.
0:42:52 > 0:42:57Will has even installed replacement windows throughout.
0:42:59 > 0:43:04And the whole house has been rewired.
0:43:04 > 0:43:08There are still a few rooms that need to be finished.
0:43:08 > 0:43:11Some look more like workshops than bedrooms at the moment.
0:43:12 > 0:43:15It may seem like it's been a fairly straight-forward renovation,
0:43:15 > 0:43:18a quick lick of paint here and some new carpets there,
0:43:18 > 0:43:21but it's been a lot more complicated than that.
0:43:21 > 0:43:25When you started going into the ceiling and roof spaces,
0:43:25 > 0:43:27all the roofs were leaking.
0:43:27 > 0:43:30There was rot in some of the timbers which have been replaced.
0:43:30 > 0:43:33We had to strip it all out as there was no insulation.
0:43:33 > 0:43:34It was freezing cold.
0:43:34 > 0:43:37We've had to insulate it which was hard work.
0:43:37 > 0:43:41We had to rip everything out, then re-plasterboard it and plaster it.
0:43:41 > 0:43:44While doing that we discovered holes in the tiles,
0:43:44 > 0:43:46problems with the felt which had to be fixed.
0:43:46 > 0:43:49Then we've got the same problem in the bathroom.
0:43:49 > 0:43:53When we took off the ceiling there we discovered there was water coming in.
0:43:53 > 0:43:58But the ceiling's patched up now and the new suite is in, ready to be decorated.
0:43:58 > 0:44:02That landing bathroom and toilet have also been transformed,
0:44:02 > 0:44:08with a much more practical shower unit installed and stylish new fittings.
0:44:08 > 0:44:10Although everything is plumbed in now,
0:44:10 > 0:44:14there was yet another hidden problem in the pipeline for Will.
0:44:14 > 0:44:16At the front of the house is a gaping hole
0:44:16 > 0:44:19where the Water Board had to come and fit a new pipe.
0:44:19 > 0:44:22The old one was lead and was pretty furred up.
0:44:22 > 0:44:25We had to put a new water main in to keep the showers and hot water returning.
0:44:25 > 0:44:29The mains pipe had to be replaced because it was lead.
0:44:29 > 0:44:35And Will only had to pay for a new internal connecting pipe, which cost just 20 quid.
0:44:35 > 0:44:39To meet the council's requirements for a house of multiple occupancy,
0:44:39 > 0:44:43not only did Will have to make sure there were enough toilets,
0:44:43 > 0:44:45basins and showers about the house,
0:44:45 > 0:44:50he also had to install safety features such as smoke alarms and escape windows.
0:44:50 > 0:44:53He even had to replaster all the ceilings.
0:44:53 > 0:44:55Happily, he managed to preserve
0:44:55 > 0:44:57as much of that lovely coving as he could.
0:44:57 > 0:45:00There are a lot of period features in the house
0:45:00 > 0:45:02that I was keen to keep and hang on to.
0:45:02 > 0:45:05Things like beautiful coving going round the ceilings.
0:45:05 > 0:45:07The beautiful coving becomes a problem
0:45:07 > 0:45:09when you need to replaster board ceilings
0:45:09 > 0:45:12and plaster over them to meet the HMO licensing regs.
0:45:12 > 0:45:15So, I brought in good plasterers.
0:45:15 > 0:45:17They know what to do.
0:45:17 > 0:45:19They've fed the plaster in as best as they can
0:45:19 > 0:45:22so we can keep the original coving, give it a good lick of paint.
0:45:22 > 0:45:24It doesn't look too bad.
0:45:24 > 0:45:28He's done a great job of retaining the original features.
0:45:28 > 0:45:33Hang on, those lovely Minton tiles have been replaced by new tiling.
0:45:33 > 0:45:35I'm not happy about that.
0:45:35 > 0:45:37Once we peeled back the layers of carpet,
0:45:37 > 0:45:41they were all cracked, all uneven, the damp was coming through.
0:45:41 > 0:45:43I'm terribly sorry, they have had to go.
0:45:43 > 0:45:47OK, then, I'll let you off this time.
0:45:47 > 0:45:51Another big change has been in the kitchen which he's turned from
0:45:51 > 0:45:54a dark and gloomy room into a modern space.
0:45:54 > 0:45:57Welcome to my shiny new kitchen.
0:45:57 > 0:46:00We've got to meet rules and regs in the kitchen area as well
0:46:00 > 0:46:01to meet HMO licences purposes.
0:46:01 > 0:46:04Certain amounts of worktop space needed.
0:46:04 > 0:46:06Fridge freezer space. We're lucky on that front -
0:46:06 > 0:46:09the previous owners left me one. We have a monster of an oven.
0:46:09 > 0:46:13We have to have a certain amount of burners for a certain number of people.
0:46:13 > 0:46:17We've even built a new wall. This was only single skin to begin with.
0:46:17 > 0:46:19We had to do all sorts of things like that as well.
0:46:19 > 0:46:24The one area that hasn't had any attention is out the back.
0:46:24 > 0:46:27It's got worse. It's full of rubble from the building work.
0:46:27 > 0:46:30But nothing a few trips to the dump won't sort out.
0:46:30 > 0:46:35In fact, Will has got a fitting plan for the garage.
0:46:37 > 0:46:40I've got a gymnasium in one of my houses that I used to live in.
0:46:40 > 0:46:42I'm thinking of installing it in the garage.
0:46:42 > 0:46:44Charging membership for the tenants
0:46:44 > 0:46:46and perhaps they can use the gym in the garage.
0:46:46 > 0:46:49So we've got a few ideas to bounce around.
0:46:49 > 0:46:52A gym, what's next?
0:46:52 > 0:46:55A sauna and a swimming pool?
0:46:55 > 0:46:58Even with all the extra work he's had to do here,
0:46:58 > 0:47:02he'll only be a few weeks over his three month schedule when he finishes.
0:47:02 > 0:47:04What about the budget?
0:47:06 > 0:47:11I had a stab at £10,000 to £15,000, just looking at it.
0:47:11 > 0:47:14That has gone up in smoke a wee bit.
0:47:14 > 0:47:18You can double the £10,000 and add on a couple on to that.
0:47:18 > 0:47:22About £20,000 to £25,000 it will cost when it's all done.
0:47:22 > 0:47:25Purely because you don't know what you've got
0:47:25 > 0:47:27until you peel back the layers.
0:47:27 > 0:47:31There's always problems that need fixing and that can be expensive.
0:47:31 > 0:47:37If it does cost £25,000 for the work, on top of the £175,000 he paid
0:47:37 > 0:47:41for it, his total spend here will be £200,000.
0:47:41 > 0:47:44How good a return could he make here?
0:47:46 > 0:47:49We asked a local estate agent along to give us his opinion.
0:47:54 > 0:47:56What a transformation. It's fresh.
0:47:56 > 0:48:03From the dull, damp airy rooms we had before, we have a freshness.
0:48:03 > 0:48:05It's been re-rendered, rewired.
0:48:05 > 0:48:09It feels much more homely, as it were.
0:48:09 > 0:48:12The standard of the bathroom and kitchen fitments are very good.
0:48:12 > 0:48:17Bearing in mind that they'll be geared to the young individual.
0:48:17 > 0:48:20There will be wear and tear. But the quality is good, it should be durable.
0:48:20 > 0:48:24The fact that the property has been divided into eight rooms,
0:48:24 > 0:48:26from his point of view, provides a good rental income.
0:48:26 > 0:48:30But I feel, long-term wise, perhaps in the next three to five years,
0:48:30 > 0:48:32perhaps to consider a development at the back
0:48:32 > 0:48:34and conversion into apartments.
0:48:34 > 0:48:39But for the time being, Will is going to rent the rooms out individually.
0:48:39 > 0:48:42How much could he charge for each?
0:48:44 > 0:48:48In my opinion, if each room was let out per calendar month,
0:48:48 > 0:48:50a rental of £300 to £350 could be achieved.
0:48:50 > 0:48:54That's a bit more than I tend to charge.
0:48:54 > 0:48:58I was thinking of charging £300 to £310.
0:48:58 > 0:49:00To go up to £350, that would increase things.
0:49:00 > 0:49:02Perhaps we'll have to look into it.
0:49:02 > 0:49:07As it turns out, Will decided to stick to his £300 per room
0:49:07 > 0:49:10to attract more potential tenants.
0:49:10 > 0:49:13He's already managed to fill three of the eight rooms
0:49:13 > 0:49:15and is hoping the rest will follow quickly.
0:49:15 > 0:49:19For the moment, he's just glad to have more time to spend
0:49:19 > 0:49:22with his daughter Skye and fiancee Scarlet.
0:49:22 > 0:49:27I've done my best to have a work life balance, I have my little family now.
0:49:27 > 0:49:29In a few weeks we will have slowed things down,
0:49:29 > 0:49:32have a few days off and spend some quality time together.
0:49:35 > 0:49:41Back in Cornwall, this old quarry was sold at auction for £38,000.
0:49:41 > 0:49:45Gerald, a retired pig farmer, bought it with a view to investing
0:49:45 > 0:49:49in property rather than leaving his money in the piggy bank.
0:49:49 > 0:49:52That's a bit of a shift of job!
0:49:52 > 0:49:57Just a bit. Yep. I thought, well, let's do something totally different
0:49:57 > 0:49:59to stop myself getting bored.
0:49:59 > 0:50:02So, I bought a hole in the ground really.
0:50:02 > 0:50:06That hole in the ground had approved planning permission
0:50:06 > 0:50:08for ten lock up garages,
0:50:08 > 0:50:11which Gerald hoped would bring him a good rental return
0:50:11 > 0:50:12once he'd built them, of course.
0:50:13 > 0:50:18After nine months, it's been a great success.
0:50:18 > 0:50:21Not only has he built all ten garages,
0:50:21 > 0:50:25but Gerald has also opened up more opportunities for renting them
0:50:25 > 0:50:27by making them higher spec.
0:50:35 > 0:50:38I went back to the planners and said I'd like to
0:50:38 > 0:50:43put up rather better than bog standard pre-cast concrete garages.
0:50:43 > 0:50:49They said, "That's fine, but I'm afraid you have to pay another £1,005"
0:50:49 > 0:50:51for us to consider it, which I've done.
0:50:51 > 0:50:56Then they gave me the planning, so then we could get going on the site, really.
0:50:57 > 0:51:01These high spec garages are made of breeze block,
0:51:01 > 0:51:03not pre-fabricated concrete.
0:51:03 > 0:51:08They are each slightly wider and deeper than the original plans.
0:51:08 > 0:51:14The entrance gates and each individual garage door are electric.
0:51:14 > 0:51:18In fact, there's even an electricity supply in each one.
0:51:21 > 0:51:25There was also some extra work to do on the drainage outside
0:51:25 > 0:51:28to meet the planner's requirements.
0:51:28 > 0:51:32They wanted the water retained in the site somehow,
0:51:32 > 0:51:35if possible, otherwise I had to go into the main drains
0:51:35 > 0:51:37which would cost quite a bit of money.
0:51:37 > 0:51:44So we raised the site 600ml and managed to bring
0:51:44 > 0:51:48the rubble in and level the site up so that the drains,
0:51:48 > 0:51:53you can see in the middle, the soak away is underneath the whole site.
0:51:53 > 0:51:56So, the water disappears within itself, really.
0:52:00 > 0:52:02So, any rain will be easily drained away.
0:52:02 > 0:52:07But what if the rain fall is too heavy or, even worse, that riverbank bursts?
0:52:07 > 0:52:11Gerald has the answer for that too.
0:52:11 > 0:52:12This is Gerald's folly, really.
0:52:12 > 0:52:19What happened was the council, to give the planning permission,
0:52:19 > 0:52:26said that they wanted an escape ramp built to escape to nowhere!
0:52:27 > 0:52:31But what is it, if the town floods,
0:52:31 > 0:52:33people can come out of their garages
0:52:33 > 0:52:35and walk up here to wait to be rescued.
0:52:35 > 0:52:40So, everybody that comes here says, what is this?
0:52:40 > 0:52:43And that's what it is. They wouldn't give us...
0:52:43 > 0:52:47They won't sign the site off until this was up and built,
0:52:47 > 0:52:50because everything they do in Wadebridge now,
0:52:50 > 0:52:53they're worried about floods in perhaps 200 years time.
0:52:53 > 0:52:57So, hopefully, my garages will still be here in 200 years time!
0:52:58 > 0:53:01Well, better safe than sorry.
0:53:01 > 0:53:07Even with that extra work, his build expenses have only overflowed by £1,000.
0:53:07 > 0:53:10His build cost was £46,000.
0:53:10 > 0:53:14So added to the £38,000 he paid at auction,
0:53:14 > 0:53:17his total spend here has been about £84,000.
0:53:17 > 0:53:21But how long has the project taken to complete?
0:53:21 > 0:53:24The planning was about two and a half months.
0:53:24 > 0:53:28Then, of course, like when I bought it,
0:53:28 > 0:53:30by the time we got everything sorted out,
0:53:30 > 0:53:32the building took about four and a half.
0:53:32 > 0:53:36So, seven and a half months in total, really.
0:53:36 > 0:53:38From start to finish.
0:53:38 > 0:53:42Several local people said we can't believe how quick you've built them.
0:53:42 > 0:53:46But it seemed quite a while to me when I was paying a builder, I can tell you!
0:53:46 > 0:53:49The locals weren't just quick to spot the work going on.
0:53:49 > 0:53:52They also inundated Gerald with inquiries,
0:53:52 > 0:53:55some from up to 20 miles away.
0:53:55 > 0:53:59So it didn't take long to start filling up those garages.
0:53:59 > 0:54:01No. I was going to have a big splash,
0:54:01 > 0:54:04I thought, in the local paper and advertise them.
0:54:04 > 0:54:08But I put a board up on the front of the site just saying garages to rent.
0:54:08 > 0:54:13And, amazingly, I soon had quite a list of people interested.
0:54:13 > 0:54:16And at the moment I've got all ten let,
0:54:16 > 0:54:18the last one is being taken tomorrow.
0:54:18 > 0:54:22I've got a waiting list, still getting people ringing and inquiring.
0:54:22 > 0:54:29Mostly, I don't think many will be used for cars as such.
0:54:29 > 0:54:31I think, perhaps, less than half.
0:54:31 > 0:54:33The others for storage.
0:54:33 > 0:54:38I think there's a couple have got soft top cars which wanted to put them in.
0:54:38 > 0:54:40Soft top car storage!
0:54:40 > 0:54:42Well, with our weather in Britain,
0:54:42 > 0:54:46I reckon that's a guaranteed year round income for Gerald!
0:54:46 > 0:54:49With all the work complete and all the garages rented,
0:54:49 > 0:54:51I asked along two property experts
0:54:51 > 0:54:55to give their verdicts on Gerald's efforts.
0:54:56 > 0:54:59The garages have been built to a good standard,
0:54:59 > 0:55:00the electric gate is good.
0:55:00 > 0:55:02It makes it more secure.
0:55:02 > 0:55:06And the electric doors give it that little extra something.
0:55:06 > 0:55:08I like what the gentleman has constructed here.
0:55:08 > 0:55:10The development has come along well.
0:55:10 > 0:55:13They are attractive garages, as attractive as a garage can be.
0:55:13 > 0:55:16The specification of the garages is spot on, actually.
0:55:16 > 0:55:19You can tell they're new. You can tell they're secure.
0:55:19 > 0:55:22The fact that the garages do have power,
0:55:22 > 0:55:26lighting, electric doors, it does seem like they've gone to town
0:55:26 > 0:55:30on the actual construction and elements that they put into the property.
0:55:30 > 0:55:33I would probably say it may be a bit overkill.
0:55:33 > 0:55:35So what are the best options here,
0:55:35 > 0:55:39is it better to rent the garages out or sell them?
0:55:39 > 0:55:45The most profit, as a long-term investment, is going to be renting.
0:55:45 > 0:55:48If you were to sell them, I would recommend selling them individually.
0:55:48 > 0:55:52I would expect between £10,000 and £12,000 depending on the size of each garage.
0:55:52 > 0:55:57For the foreseeable future, Gerald will be renting the garages out
0:55:57 > 0:56:00for between £60 and £74 per calendar month,
0:56:00 > 0:56:03depending on the size of the garage.
0:56:03 > 0:56:06What do the experts make of those figures?
0:56:06 > 0:56:09The rental figure I think could be achieved
0:56:09 > 0:56:12per month per garage could be £60 to £70.
0:56:12 > 0:56:15You're probably looking somewhere between
0:56:15 > 0:56:17£60 and £75 per calendar month.
0:56:17 > 0:56:21Multiply those valuations by the ten garages and you get an annual
0:56:21 > 0:56:27rental income of between at least £6,000 and £7,500. Not bad at all.
0:56:27 > 0:56:31It seems this project, his first as a property developer,
0:56:31 > 0:56:32has worked out well.
0:56:32 > 0:56:36- So, what's next for Gerald? - A holiday next, perhaps!
0:56:36 > 0:56:39But, no, I think if I could find a site,
0:56:39 > 0:56:42you know, in the right place at the right price,
0:56:42 > 0:56:45yeah, I would like to have another little go.
0:56:45 > 0:56:48Maybe the start of something bigger.
0:56:48 > 0:56:49I don't know.
0:56:54 > 0:56:58So, there's a taster of what it's like to buy your home under the hammer.
0:56:58 > 0:57:00And we'll be hot on the heels
0:57:00 > 0:57:03of more brave auction buyers for you next time.
0:57:03 > 0:57:04- We'll see you then. Goodbye. - Goodbye.
0:57:17 > 0:57:20Subtitles by Red Bee Media Ltd
0:57:20 > 0:57:25E-mail subtitling@bbc.co.uk