0:00:02 > 0:00:06Buying property at auction has become increasingly popular as it can
0:00:06 > 0:00:10be a good way to get bargains and exchange contracts quickly.
0:00:10 > 0:00:14But it can be risky, especially in the current climate.
0:00:14 > 0:00:19So we're here to show you how other buyers got on and guide you through the process.
0:00:44 > 0:00:49Buying and doing up property can be very rewarding, but also fraught with problems.
0:00:49 > 0:00:51Some people take to it like a duck to water,
0:00:51 > 0:00:54others, well, like a cat to water.
0:00:54 > 0:00:56Well, which will our buyers be today,
0:00:56 > 0:00:59will they be quacking mad or purring with pleasure?
0:01:00 > 0:01:04You might feel rather confined in this ground floor flat in Wiltshire.
0:01:07 > 0:01:08Let me out!
0:01:10 > 0:01:13Remember this derelict woodland lodge in Kent?
0:01:13 > 0:01:16In 2006, you could barely see the house for the trees.
0:01:16 > 0:01:19Find out how it's been beautifully reinvented.
0:01:21 > 0:01:26It seems this plot of land in Yorkshire is proving fruitful.
0:01:26 > 0:01:28One of the perks of the job,
0:01:28 > 0:01:30delicious raspberries!
0:01:32 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:40We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:44 > 0:01:46Today, I'm in Swindon, Wiltshire.
0:01:46 > 0:01:51Midway between Bristol and Reading, it's just within commuting distance of London.
0:01:55 > 0:01:58I'm here to see a property that the auction catalogue describes as,
0:01:58 > 0:02:03"A two bedroom ground floor flat in the heart of old town in need of modernisation and updating."
0:02:03 > 0:02:08It does say something which is very interesting, but I'll not tell you about that quite yet.
0:02:08 > 0:02:12Patience, our little property seeking cherubs, patience.
0:02:13 > 0:02:21I bet you can't wait, but hold your horses, this house is on Western Street, so, is it good, bad or ugly?
0:02:23 > 0:02:28I've seen my share of all three, this one falls into the "good" category.
0:02:28 > 0:02:33However, I imagine you'd have to spend more than a fistful of dollars to improve its kerb appeal.
0:02:33 > 0:02:36Here it is, 65,000 quid.
0:02:36 > 0:02:39Let's see what's in store behind the door.
0:02:43 > 0:02:46Well, straight into your lounge.
0:02:46 > 0:02:51Never ideal, as you get noise and cold coming through the front door there, but it's not a bad size.
0:02:51 > 0:02:55Laminate flooring, it doesn't look like it's been well laid, but it's OK.
0:02:55 > 0:02:58The box room there so it's all not too bad so far.
0:02:58 > 0:03:02Then you come into this area of the flat,
0:03:02 > 0:03:07it's a dark, dingy corridor, getting even darker and dinger that way.
0:03:07 > 0:03:12Bathroom and loo, no windows there, which isn't ideal.
0:03:12 > 0:03:16You can live with that. What I cannot live with is this room here.
0:03:16 > 0:03:22It's the main bedroom, it's even darker, even dingier, it's like a cell in here!
0:03:22 > 0:03:28The reason is just this tiny window.
0:03:28 > 0:03:29Let me out!
0:03:33 > 0:03:37I knew it would only be a matter of time before things started going
0:03:37 > 0:03:40wrong for this property on Western Street.
0:03:42 > 0:03:47Tiny windows, no skirting boards, dodgy electrics and the windows are mouldy.
0:03:47 > 0:03:50This place looks as though it should be on a wild western street,
0:03:50 > 0:03:54but, partner, the viewing doesn't stop there, no siree!
0:03:56 > 0:04:01Another dark, dingy corridor, this one's narrow to boot, but it leads to the kitchen.
0:04:01 > 0:04:04I mean, really not ideal at all.
0:04:04 > 0:04:10The kitchen is not a bad size but clearly the units will have to be replaced.
0:04:10 > 0:04:16I did mention an interesting thing about the property that just could redeem itself.
0:04:16 > 0:04:18It's here, it's a cellar. It's a big cellar as well.
0:04:18 > 0:04:23In the Victorian times this would have been used for storing coal, doing laundry, whatever.
0:04:23 > 0:04:27Nowadays that can be a very important addition to the flat.
0:04:27 > 0:04:30It gives you extra space, which the flat needs.
0:04:30 > 0:04:33It will need a specialist in to sort it out, it will need tanking
0:04:33 > 0:04:38and discussions with the neighbours in case there are party walls that you need their permission to touch,
0:04:38 > 0:04:43but all in all, that is the saving grace for the flat.
0:04:44 > 0:04:48I'm not sure the same can be said about this outside area, though.
0:04:51 > 0:04:56So, to check out those saving graces, I've invited a local estate agent around to have a look.
0:04:58 > 0:04:59It is very tired.
0:04:59 > 0:05:02It does offer an awful lot of potential
0:05:02 > 0:05:05and believe it will make someone a fantastic home.
0:05:05 > 0:05:09A fantastic home, but is that downstairs cellar a seller?
0:05:09 > 0:05:13The cellar, because there is no natural light it can't, in my opinion,
0:05:13 > 0:05:18be used as a an additional bedroom, but would make a great second reception room.
0:05:18 > 0:05:22Converting the cellar into a bed or reception room creates extra accommodation, which would be useful.
0:05:22 > 0:05:29The flat has a guide price of £65,000, so, would it be worth doing it up?
0:05:29 > 0:05:32When renovated, in my opinion, I believe this
0:05:32 > 0:05:35property should be on the market for in the region of £100,000.
0:05:35 > 0:05:38Not bad, that's £35,000 above the guide price.
0:05:38 > 0:05:42When you've finished you could always rent it out.
0:05:42 > 0:05:46Per calendar month, we would expect to achieve in the region of £550.
0:05:46 > 0:05:47That's good.
0:05:49 > 0:05:51That's bad.
0:05:51 > 0:05:55And, well, that's ugly.
0:05:59 > 0:06:03Well, if the dark bedroom and the narrow corridor doesn't put you off,
0:06:03 > 0:06:06that kitchen and the excuse for a garden just might.
0:06:06 > 0:06:13Still, it is in a desirable area, so I'm sure somebody fancied it when it went under the hammer.
0:06:17 > 0:06:2150 I've got, thank you very much, sir. £50,000 we're going to.
0:06:21 > 0:06:24So, £50,000, 52. 54 to you, sir, 54.
0:06:24 > 0:06:2656, 58.
0:06:26 > 0:06:30£58,000, the gentleman sat down. £58,000. 60, I'll take.
0:06:30 > 0:06:3359 if you like? Otherwise the £58,000.
0:06:33 > 0:06:3559, 59, 60, sir? 60.
0:06:35 > 0:06:3861 round the corner, 61. 62, sir?
0:06:38 > 0:06:4262, 63. 64.
0:06:42 > 0:06:45At 64, OK it's back to you sat down at £64,000.
0:06:45 > 0:06:49Against you at the back, 500 if you like.
0:06:49 > 0:06:51500, sir?
0:06:51 > 0:06:54No, at £64,000 for the first time...
0:06:54 > 0:06:59At £64,000 for the second time... At £64,000 for the third and last time.
0:06:59 > 0:07:05Dan and Katrina bought it with help from Dan's dad.
0:07:05 > 0:07:11The couple, who hope to become property developers, paid £64,000.
0:07:11 > 0:07:14£1,000 under the guide price.
0:07:14 > 0:07:16We looked around at a few places.
0:07:16 > 0:07:18We were looking for a change in lifestyle.
0:07:18 > 0:07:21We saw this one, went to the auction and went for a bit below
0:07:21 > 0:07:24our target price and thought, "great opportunity."
0:07:24 > 0:07:27You say change in lifestyle, tell me more?
0:07:27 > 0:07:30We both work for a big corporate company.
0:07:30 > 0:07:32We got the offer of redundancy.
0:07:32 > 0:07:34Redundant?
0:07:34 > 0:07:35- Yes.- How old are you?- I'm 28.
0:07:35 > 0:07:38I'm 28 as well.
0:07:38 > 0:07:42- A bit of a shock, was it?- We both had the option. We thought about it.
0:07:42 > 0:07:45We thought we'd like to go travelling, take a bit of time off.
0:07:45 > 0:07:50So we pounced on the opportunity, went travelling and got back and thought, "Well..."
0:07:50 > 0:07:53Don't want to go back to the desk jobs.
0:07:53 > 0:07:56We thought something like this would be a bit more exciting.
0:07:56 > 0:07:59Wow! So a real change of lifestyle?
0:07:59 > 0:08:02Yep, completely, no more nine to five.
0:08:02 > 0:08:07# Working nine to five What a way to make a living... #
0:08:07 > 0:08:09There's a lot of work to do on this property.
0:08:09 > 0:08:15So their old nine to five jobs may seem like a breeze after the hours they'll need to put in here.
0:08:15 > 0:08:18Luckily, they spent time travelling so should be well rested now.
0:08:18 > 0:08:20So, where did you go travelling?
0:08:20 > 0:08:24- South-east Asia, China, Australia. - Everywhere!
0:08:24 > 0:08:28- For how long?- For five months. - It was really fantastic.
0:08:28 > 0:08:32Incredible scenery, just such a variety of people and cultures.
0:08:32 > 0:08:35- We would definitely go back if we got the chance.- Yes.
0:08:35 > 0:08:39- If it all goes well maybe you will? - Yeah, that's right.
0:08:39 > 0:08:41It sounds as though they had a good time.
0:08:41 > 0:08:46Before they go globe trotting again, they will have to get to grips with property development.
0:08:46 > 0:08:50So, why this flat specifically, obviously there are other properties around here?
0:08:50 > 0:08:55Partly the price. Partly cos it has a lot of stuff we could do ourselves
0:08:55 > 0:08:58and the opportunity to make a bit of money from it.
0:08:58 > 0:09:03It has the basement, which is a bit of an opportunity, and a great location.
0:09:03 > 0:09:05Location is key to a good property purchase,
0:09:05 > 0:09:09but I hope Dan and Katrina are prepared for the amount of hard graft
0:09:09 > 0:09:11they are going to have to do here.
0:09:11 > 0:09:13# Ready, set, go!
0:09:13 > 0:09:16# Break up the pace and step on it
0:09:16 > 0:09:18# Rip up the place if you want it
0:09:18 > 0:09:22# Work, work You know you got to work, work. #
0:09:22 > 0:09:26The most important thing is to give it a lick of paint, sort the floors out.
0:09:26 > 0:09:31Give that good first impression so people walk through the door and get a great first impression.
0:09:31 > 0:09:34We're also deciding what to do with the basement.
0:09:34 > 0:09:39We thought maybe there's potential to create some space that maybe would add some value. So...
0:09:39 > 0:09:41It's a very large space.
0:09:41 > 0:09:47You know, we think that space is very important, particularly at this price range in the market.
0:09:47 > 0:09:49So if we can turn that basement into usable space it would,
0:09:49 > 0:09:52hopefully, increase the property value by quite a lot.
0:09:52 > 0:09:57Converting basements and cellars is a bit of a specialist area, isn't it, tanking and...
0:09:57 > 0:10:02- Yeah, it's something we wouldn't be able to do ourselves, we would need to get somebody in.- Absolutely.
0:10:02 > 0:10:05Have you looked through the costing of that, it's not necessarily cheap?
0:10:05 > 0:10:07Will it add enough value to the property?
0:10:07 > 0:10:11We understand that'll be expensive, we're getting a builder in to give us an estimate.
0:10:11 > 0:10:12Right. Then make a decision on that?
0:10:12 > 0:10:16Weigh up the pros and the cons of converting it.
0:10:16 > 0:10:20Apart from that, what are you going to do, upstairs, for instance?
0:10:20 > 0:10:25We are going to put a new kitchen in. The old one is quite dated.
0:10:25 > 0:10:27We will put a newish kitchen in.
0:10:27 > 0:10:30We'll do all the painting and decorating, potentially put
0:10:30 > 0:10:33some new floors in cos these aren't the greatest floors.
0:10:33 > 0:10:35I think we'll do all of the simple stuff ourselves.
0:10:35 > 0:10:40We both own two houses in Newbury and we've done quite a lot of painting and decorating in those.
0:10:40 > 0:10:43So all of that stuff we're completely comfortable with.
0:10:43 > 0:10:47Dan might do some of the stuff in the cellar, but I'm not so keen on that.
0:10:47 > 0:10:51I've installed a kitchen and a bathroom in my flat, so I may or may not have a go at that.
0:10:51 > 0:10:54- But leave the specialist to the experts?- Yes.
0:10:54 > 0:10:57Have you got anybody lined up to do the work?
0:10:57 > 0:11:01We've got some people coming in next week, builders, a plumber, electrician, got the works.
0:11:01 > 0:11:05Everyone is coming next week. You're going to get lots of quotes?
0:11:05 > 0:11:08- Absolutely.- Yeah. At least three? - At least three.- Yeah.
0:11:08 > 0:11:12Although the couple do have some experience, they're wise to leave
0:11:12 > 0:11:16the specialist work to the specialists, it could be dangerous.
0:11:16 > 0:11:20They're going to tidy up the garden and bring it back to life with a few flowers.
0:11:20 > 0:11:27As they paid £1,000 under the guide price of £65,000, is the budget blooming too?
0:11:27 > 0:11:31We would like to spend ten to £15,000 all in.
0:11:31 > 0:11:34We'll see what happens when we start getting some estimates in.
0:11:34 > 0:11:38Is that including the cellar or not?
0:11:38 > 0:11:41That would include us cleaning it out, maybe making it look better,
0:11:41 > 0:11:45tanking it and getting it sorted out, that would be an additional cost on top of that.
0:11:45 > 0:11:50- A decision you'll make at the next stage?- Yeah, when we get more information on the costs.
0:11:50 > 0:11:53So, you've been made redundant, how are you financing this venture?
0:11:53 > 0:11:58Primarily through a redundancy package and we're investing with my dad as well.
0:11:58 > 0:12:01So you've put a lot of your savings into this?
0:12:01 > 0:12:05- Indeed. A big risk.- Are you nervous?
0:12:05 > 0:12:06- Yeah.- It's a big life decision.
0:12:06 > 0:12:08I think it's natural to be nervous, so, yeah.
0:12:08 > 0:12:11But potentially a good life decision?
0:12:11 > 0:12:13We hope so. Absolutely.
0:12:13 > 0:12:18# Good life, good life, good life Good life, good life, good life. #
0:12:18 > 0:12:23With a three-month timescale they won't have much opportunity to enjoy the good life,
0:12:23 > 0:12:27but this is their first development venture, so they're keen to make it a success.
0:12:27 > 0:12:31If this goes well they're going to invest the money in another property.
0:12:31 > 0:12:37They hope that in the future their portfolio will be big enough to allow them to go travelling again.
0:12:37 > 0:12:40We wish Dan and Katrina all the best with their new venture,
0:12:40 > 0:12:44but I am a little bit concerned as to whether or not they can really turn
0:12:44 > 0:12:46the intrinsic problems with this flat around.
0:12:46 > 0:12:52One bit of advice, though, for the flat in Western Street, watch out for cowboy builders.
0:12:52 > 0:12:55Join me later in the show to see how they get on.
0:12:57 > 0:13:03We now return to an auction lot we first showed you in June, 2006.
0:13:03 > 0:13:06It was in the beautiful Kent town of Faversham
0:13:06 > 0:13:09next to a rather colourful motel.
0:13:09 > 0:13:14Wow, now this is a lovely location, look at the beautiful views
0:13:14 > 0:13:18and you are only five minutes away from Faversham town centre.
0:13:18 > 0:13:21As well as the motel, you have a gym here and a nursery.
0:13:21 > 0:13:25I think the property I'm about to see is somewhere down there.
0:13:25 > 0:13:28So, let's see what's in the woods today.
0:13:28 > 0:13:31# If you go down in the woods today You're sure of a big surprise. #
0:13:31 > 0:13:35Well, teddy bears may be a bit thin on the ground,
0:13:35 > 0:13:40but this is definitely an example of somewhere you can't see the wood for the trees.
0:13:40 > 0:13:45There's half an acre here, so you will have to be a keen gardener.
0:13:46 > 0:13:49This is an amazing woodland setting.
0:13:49 > 0:13:52Although, I have to say, it's a bit overgrown
0:13:52 > 0:13:55and you would definitely need to do a lot of landscaping,
0:13:55 > 0:13:59although I would like to keep some of these trees for the screening.
0:13:59 > 0:14:02Now, the house, well, it's pink,
0:14:02 > 0:14:04probably needs quite a lot of work
0:14:04 > 0:14:06and there's a bush growing on the roof.
0:14:06 > 0:14:08I'm going to go inside.
0:14:08 > 0:14:13The house had a guide price of between £200,000 and £220,000.
0:14:13 > 0:14:17It had lain vacant for many years and the woodland had been slowly
0:14:17 > 0:14:21reclaiming it, making it a very eco-friendly house indeed.
0:14:28 > 0:14:31Now, that's a big, old front door.
0:14:31 > 0:14:37But the inside of this property is just like the outside, a bit of a shambles.
0:14:37 > 0:14:41It really does smell damp and dank.
0:14:41 > 0:14:42It's quite dark in here.
0:14:42 > 0:14:48I think that's because of all of the bushes and trees are so overgrown outside. But it's not a bad space.
0:14:48 > 0:14:54You've got gas central heating in here, but you would just need to totally and utterly start again.
0:14:54 > 0:14:58Now this is a very long corridor with lots of little rooms going off it.
0:14:58 > 0:15:02It's really dark in there, I would call it a small single.
0:15:02 > 0:15:05It looks as if the Triffids are coming in through the window.
0:15:05 > 0:15:08Just down the corridor is the second bedroom.
0:15:08 > 0:15:12Like the rest of the rooms, it's rather boxy and needs a rethink.
0:15:12 > 0:15:17Now look at this, we've got brown carpet climbing the walls.
0:15:17 > 0:15:23I love it, but the size of this room, it's like a mini village hall.
0:15:23 > 0:15:28With a rather dilapidated conservatory-cum-terrace area added on the back,
0:15:28 > 0:15:32you can at least see the fantastic views that this site has to offer.
0:15:32 > 0:15:37Perhaps that's how you should think of this lot, as a piece of land with potential to build?
0:15:40 > 0:15:45I think this house needs to be demolished, but you must be careful how much you spend at auction.
0:15:45 > 0:15:48Essentially, you'll be buying a building plot.
0:15:48 > 0:15:51Let's see who bought it when it went over under the hammer.
0:15:51 > 0:15:54113 now is Syndale Park Lodge.
0:15:54 > 0:15:57Start me at 190, let's see where you want to start.
0:15:57 > 0:15:59190 I've got on my right hand side.
0:15:59 > 0:16:01190, I'm on the way.
0:16:01 > 0:16:03200, it's against you.
0:16:03 > 0:16:05200 it's with you.
0:16:05 > 0:16:08210, it's against you now. 210 it's against you.
0:16:08 > 0:16:11210 and 20. 220?
0:16:11 > 0:16:13And 30? 230?
0:16:13 > 0:16:17And 40 make it, 240. 250 make it?
0:16:17 > 0:16:20250, it's still worth it, keep with it. 250 I have, 260 now.
0:16:20 > 0:16:25260 and two. 262? It looks like a shake of the head.
0:16:25 > 0:16:29If we're all done at £260,000 we're going to sell it for the first time...
0:16:29 > 0:16:32£260,000 for the second...
0:16:32 > 0:16:37Are you sure you're out? £260,000 for the third and final time.
0:16:37 > 0:16:40It's yours, sir, for 260. Well done.
0:16:40 > 0:16:42And your card number, please?
0:16:42 > 0:16:47For £260,000, the new owners are David and his partner, Sally.
0:16:47 > 0:16:50David ran a fashion company in London for 20 years.
0:16:50 > 0:16:53Sally works as a university teacher.
0:16:53 > 0:16:56Although David has done some property developing before,
0:16:56 > 0:17:01he wasn't quite ready for what greeted him when he first saw Syndale Park Lodge.
0:17:01 > 0:17:05When we first saw it, the first impression was, "My goodness, what a mess,"
0:17:05 > 0:17:09but when we really looked into it we saw the roof looked good, the walls were solid.
0:17:09 > 0:17:16When we came through the property and saw the view at the other side, then we got really excited about it.
0:17:16 > 0:17:22- Sally, what was your gut feeling?- I liked it, because when you walk into it it's like walking into a forest.
0:17:22 > 0:17:28That part of the garden, it's so overgrown and then you suddenly find a little cottage tucked away.
0:17:28 > 0:17:36So it felt quite magical, but of course coming in, it was such a mess inside, so dingy, but as David said,
0:17:36 > 0:17:40as soon as you get outside there's that gorgeous view.
0:17:40 > 0:17:42So I had mixed impressions, really.
0:17:42 > 0:17:49Now they've got it, complete with all its mixed blessings, what are they going to do with it?
0:17:49 > 0:17:54Plan A is to maybe take the roof off, keep the walls,
0:17:54 > 0:18:00take everything out and strip the whole thing and build across it.
0:18:00 > 0:18:02Still retain some of the walls.
0:18:02 > 0:18:11If that does not work then plan B is to gut it, keep the roof on and do a few extensions to it as it is
0:18:11 > 0:18:15and make it more of a small, pretty project.
0:18:19 > 0:18:25What they really want to do is Plan C, a new-build kit home made of timber.
0:18:25 > 0:18:30They could build it 60% bigger than the current footprint if they wanted.
0:18:30 > 0:18:36Inspiration for the design and the construction of the new house comes from David's travels abroad.
0:18:39 > 0:18:41From Canada we got a few ideas.
0:18:41 > 0:18:46From that, I think importing various properties that I've
0:18:46 > 0:18:50seen over there could be the way to do it, especially in cedar.
0:18:50 > 0:18:53One of the companies in Canada I approached,
0:18:53 > 0:18:57they've already done some pricing for us for delivering it,
0:18:57 > 0:19:03it comes in four containers, delivered on site with two employees to help put it up.
0:19:03 > 0:19:07What type of costings are you looking to erect a house like this?
0:19:07 > 0:19:12We're working on a budget of no more than £150,000, which sounds
0:19:12 > 0:19:16very, very low, but it looks like if we go that route it can be possible.
0:19:16 > 0:19:19That's for a complete house?
0:19:19 > 0:19:23It's a complete house but not the foundations, and not the surfaces,
0:19:23 > 0:19:28we have to do that, put the plumbing in, the wiring and so on
0:19:28 > 0:19:30and obviously the footings.
0:19:30 > 0:19:35Subject to planning permission, the proposed house will have five bedrooms and four bathrooms.
0:19:35 > 0:19:41There will be two wings, one of which is earmarked for David's father to live in.
0:19:41 > 0:19:45Sally, how will the interior of the property be, will it reflect the outside?
0:19:45 > 0:19:52The idea is that it's going to be big, but it's going to be open and light.
0:19:52 > 0:19:56We're hoping we can have some mezzanine floors so we've got more than one level.
0:19:56 > 0:19:59At the moment it's just a box, really.
0:19:59 > 0:20:05The idea is to make it more interesting and exciting and it'll be very much an open plan place.
0:20:05 > 0:20:06Very much open plan living.
0:20:06 > 0:20:09Lots of glass so you can really take in all the views?
0:20:09 > 0:20:14At the front, yes, definitely, so we can really enjoy the view.
0:20:14 > 0:20:16What a project it's been.
0:20:16 > 0:20:23After my first visit in 2006, David and Sally did get permission for their Canadian new-build.
0:20:23 > 0:20:26The project ended up a mixture of conservation,
0:20:26 > 0:20:30demolition and restoration all rolled into one.
0:20:30 > 0:20:33When we first returned, ten months later,
0:20:33 > 0:20:38a white cedar log home had been constructed, but was just an empty shell.
0:20:38 > 0:20:44Join us later in the programme to see how the completed house looks two ½ years on.
0:20:44 > 0:20:45It's amazing.
0:20:46 > 0:20:52Coming up, this plot of land in Yorkshire seems to have the perfect address for appearing on our show.
0:20:52 > 0:20:56Valuation Lane, fantastic!
0:20:57 > 0:21:03When we last visited this woodland spot in Kent, the owners had started building their wooden lodge.
0:21:03 > 0:21:05Two years on, we see the fabulous end result.
0:21:05 > 0:21:07It's looked like a building site for a long time.
0:21:07 > 0:21:12First, have this Wiltshire couple got their property sussed?
0:21:12 > 0:21:16It's got the basement, which is a bit of an opportunity and just a great location.
0:21:21 > 0:21:28Dan and Katrina bought this two bedroom flat in Western Street, Swindon, at auction for 64 grand.
0:21:28 > 0:21:33They had both been working at the same company when they were offered redundancy.
0:21:33 > 0:21:35We pounced on the opportunity.
0:21:35 > 0:21:37Went travelling, got back and felt...
0:21:37 > 0:21:44We don't really want to go back to the desk job, so thought something like this would a bit more exciting.
0:21:44 > 0:21:47Let's go travelling ourselves and take a trip
0:21:47 > 0:21:51round the house to see if giving up the nine-to-five was a good decision.
0:22:05 > 0:22:11The small window is still there, but it's amazing how some skirting boards and new paint
0:22:11 > 0:22:14really freshens and brightens this room up.
0:22:17 > 0:22:19The rest of the house is looking good as well.
0:22:26 > 0:22:30The last month's been very different, but we've enjoyed being our own bosses.
0:22:30 > 0:22:33Yeah, doing what we want when we want.
0:22:33 > 0:22:37We've tried to treat it like a normal job so we come in at nine and we leave at six
0:22:37 > 0:22:38so we wouldn't get too tired of it.
0:22:38 > 0:22:42We were a little more flexible about giving ourselves a day off here and there,
0:22:42 > 0:22:45but in the last few weeks we've realised we need to get it finished
0:22:45 > 0:22:47and we've been a bit stricter and put in slightly longer days.
0:22:47 > 0:22:50- A seven-day week.- Yeah.
0:22:52 > 0:22:55Nobody said property developing was easy.
0:22:55 > 0:23:01The hours can be long, the work strenuous and sometimes you have to go to places you may not want to.
0:23:05 > 0:23:09So, this is the basement. You would hardly recognise it from how it looked before.
0:23:09 > 0:23:13This was just full of junk. It was rotting,
0:23:13 > 0:23:16a little bit mouldy so we had a big job in on hands to lift it all out.
0:23:16 > 0:23:20That was the first job, it took two van loads of stuff to get it all out.
0:23:20 > 0:23:24Then we decided we wanted a bit more ceiling height. We decided to take the bricks up.
0:23:24 > 0:23:29We're not sure if that was a good decision, it took two tonnes of bricks up and down those stairs.
0:23:29 > 0:23:34But, yeah, we got the builder in, he sorted the damp proofing out,
0:23:34 > 0:23:38put these walls up, put the plaster on the ceiling and the walls.
0:23:38 > 0:23:40He left it for us and we did the rest of the declaration.
0:23:40 > 0:23:44Painted it, put these wall lights in, the laminate floor and skirting.
0:23:44 > 0:23:48We're pretty pleased with it now. We think it looks pretty good.
0:23:48 > 0:23:51A nice space, it could be used as a little den or TV room, something like that.
0:23:51 > 0:23:54They had this basement done by professionals.
0:23:54 > 0:23:58It's really not worth taking this on yourself, if you don't know what you're doing.
0:23:58 > 0:24:00There is so much that can go wrong.
0:24:00 > 0:24:02# Get down, deeper on down
0:24:02 > 0:24:05# Down, down, deeper on down
0:24:05 > 0:24:07# Down, down, deeper on down
0:24:07 > 0:24:09# Get down, deeper on down... #
0:24:11 > 0:24:17- Well, that's the down done, let's take a look upstairs. - This is the new kitchen.
0:24:17 > 0:24:21We completely ripped the old one out because it was in such bad condition and so old.
0:24:21 > 0:24:25This kitchen was actually here. The previous owner had bought it but not put it in.
0:24:25 > 0:24:29So we put that straight in and it's made the room look so much bigger and nicer.
0:24:29 > 0:24:35We also put new tiles, new floor, new worktop, new curtains, painted the whole thing.
0:24:35 > 0:24:37Now it just looks really nice, I think.
0:24:37 > 0:24:43What a stroke of luck. The new kitchen came with the property and just had to be installed.
0:24:47 > 0:24:49The bathroom didn't need upgrading at all. So,
0:24:49 > 0:24:53along with the basement renovation, that was the three main jobs covered.
0:24:53 > 0:24:58Let's continue our tour of the rest of the house.
0:25:12 > 0:25:18Some of the work was done by contractors, so how did that work out for these novice property developers?
0:25:18 > 0:25:20It worked out fine for us.
0:25:20 > 0:25:23I don't know if that's just luck or maybe we're good at it, but
0:25:23 > 0:25:26it worked out well.
0:25:26 > 0:25:30It's nice being in control of your own money and making decisions.
0:25:30 > 0:25:33I've got a problem of wanting to buy nicer things that cost more money.
0:25:33 > 0:25:36Dan's reined me in and made me realise it's not my house,
0:25:36 > 0:25:39so we can only spend money on things that add value.
0:25:41 > 0:25:44It's easy to get carried away and forget
0:25:44 > 0:25:49you're not doing your own home, but one for rental or resale.
0:25:49 > 0:25:55We've spent approximately £12,000, including all our anticipated selling fees and mortgage fees.
0:25:55 > 0:26:01The basement cost us £3,800, which was a lot less than we thought at first. So that was a good bonus.
0:26:01 > 0:26:04There's still a bit to do, but their original budget was
0:26:04 > 0:26:08between ten and 15,000, excluding the basement.
0:26:08 > 0:26:13To get it all done for £12,000 is really impressive.
0:26:13 > 0:26:18To check how they've done, we invited two local estate agents to have a look.
0:26:18 > 0:26:22The first impression when you walk in, a good sized lounge, nice, bright and airy.
0:26:22 > 0:26:28As you come through the hallway it's slightly dark but into a fairly new, nice kitchen.
0:26:28 > 0:26:34Overall, a good size, area wise very popular around here, so not too bad at all.
0:26:34 > 0:26:37Nice property. I like the tall ceilings.
0:26:37 > 0:26:40I like the downstairs basement room.
0:26:40 > 0:26:46It could be a good cinema room or a good hobby room or even a good place for somebody if they work
0:26:46 > 0:26:49from home, they can do music, photography, or something like that.
0:26:49 > 0:26:54I'm glad he likes the basement. Dan and Katrina paid £64,000 for this
0:26:54 > 0:26:59property at auction and have spent £12,000 so far doing it up.
0:26:59 > 0:27:03So, after putting in those seven days a week, what's it worth now?
0:27:03 > 0:27:07I think somebody would be prepared to pay £100,000 for this property.
0:27:07 > 0:27:11For resale purposes I would put a valuation of around £120,000.
0:27:11 > 0:27:13£120,000?
0:27:13 > 0:27:17Wow, that is really good, that's much higher than we thought.
0:27:17 > 0:27:19That's fantastic.
0:27:19 > 0:27:20That makes us really happy!
0:27:20 > 0:27:23I'm not surprised they're happy.
0:27:23 > 0:27:27Their outlay up to now has been £76,000.
0:27:27 > 0:27:32They could make a pre-tax profit of between 24 and 44,000 quid.
0:27:32 > 0:27:37They'd clean up if they sold it, but they could also rent it out.
0:27:37 > 0:27:42I'd say rental figure you're looking between £525 and £550 a month.
0:27:42 > 0:27:46I would set this to £500 per calendar month
0:27:46 > 0:27:48for a two-bed in this area.
0:27:48 > 0:27:51- That is good. - That sounds about right.- Yeah.
0:27:51 > 0:27:56- That's good news, yeah.- A bit higher than we expected, maybe.
0:27:56 > 0:28:02Dan and Katrina took the risk of entering the property development world after being made redundant.
0:28:02 > 0:28:04I think they've made a very healthy start.
0:28:04 > 0:28:07# Let the good times roll...
0:28:07 > 0:28:10Now that we've had the valuations, it has definitely been worthwhile.
0:28:10 > 0:28:12- Yeah.- It's gone to plan. - I think it has gone to plan.
0:28:12 > 0:28:16There has been no major issues that we didn't know about or any problems that
0:28:16 > 0:28:20- we didn't know. - We've learnt a tremendous amount. - And I think it's gone really well.
0:28:20 > 0:28:24Now we know the final figure, we can be really happy.
0:28:24 > 0:28:27- Assuming it sells for that much. - Yeah.
0:28:30 > 0:28:36Boroughbridge is beside the A1(M) in North Yorkshire on the banks of the river Ure.
0:28:36 > 0:28:41Equidistant between Edinburgh and London in the days of stagecoaches,
0:28:41 > 0:28:44it was an important staging post.
0:28:44 > 0:28:47The Crown alone had stabling for 100 horses.
0:28:47 > 0:28:54In its heyday, Boroughbridge had 22 inns which served travellers who passed through by road or river.
0:28:54 > 0:28:58The town is no longer as busy, but as it's just 30 minutes from Leeds, York and Harrogate,
0:28:58 > 0:29:03it's popular for commuters and I'm here to see a plot of land.
0:29:05 > 0:29:11Well, the plot is off one of the most unusual and aptly named lanes
0:29:11 > 0:29:14I've come across in the history of Homes Under The Hammer.
0:29:14 > 0:29:16Valuation Lane, fantastic.
0:29:19 > 0:29:23It's hard to put a value on the lot I've come to see.
0:29:23 > 0:29:27Yes, it's land and they don't make it any more, so, it's priceless, right?
0:29:27 > 0:29:33Well, no, everything comes at a price and the guide for this was about £60,000.
0:29:33 > 0:29:39So, off the lane, literally 30 seconds' walk from the centre of Boroughbridge is the plot of land.
0:29:39 > 0:29:41It's a good size.
0:29:41 > 0:29:46More importantly, it's got planning permission for the erection of a two to three bedroom bungalow.
0:29:46 > 0:29:48That is very important.
0:29:51 > 0:29:56The plot is relatively narrow and quite long, actually about 20 metres wide by 50 metres long.
0:29:56 > 0:30:01That does throw up a few issues when it comes to placement of any building on the site,
0:30:01 > 0:30:05but I don't think it's making the most of the space. A bungalow?
0:30:05 > 0:30:09I'd be looking at terraces or at least semi-detached.
0:30:09 > 0:30:14That way you are going to maximise potential and profit on the plot.
0:30:14 > 0:30:18This is a conservation area, so, will the
0:30:18 > 0:30:22planning authority permit a change from a bungalow to something bigger?
0:30:22 > 0:30:27It's worth looking around to see if any precedent has been set.
0:30:27 > 0:30:31Just down the road there's a plot with two houses being built on it.
0:30:31 > 0:30:35Getting permission to do the same here could make this lot quite fruitful.
0:30:37 > 0:30:40One of the perks of the job.
0:30:40 > 0:30:42Delicious raspberries!
0:30:42 > 0:30:47If you did buy this lot, what has the area got to offer?
0:30:47 > 0:30:51I asked a local estate agent to find out more.
0:30:51 > 0:30:53Boroughbridge is a popular market town.
0:30:53 > 0:30:56It's got all the amenities you could wish for, supermarkets,
0:30:56 > 0:31:00good local shops and close to the A1, so good transport.
0:31:00 > 0:31:03If the new owners thought it was a bit of a waste to have
0:31:03 > 0:31:07just one bungalow here, would it be possible to change the plans?
0:31:07 > 0:31:11Planning permission has been difficult to obtain on the site.
0:31:11 > 0:31:16I think the planners would be very cautious about any approach to alter the existing consent.
0:31:16 > 0:31:20That's a bit of a thorn in the side of would-be developers with different
0:31:20 > 0:31:25ideas for this land, but never say never, it's always worth asking.
0:31:25 > 0:31:30If the plans can't be changed, how much could the end product be worth,
0:31:30 > 0:31:35bearing in mind the guide price of 60,000 and around the same again to build.
0:31:35 > 0:31:39The development is going to be for a three-bedroom chalet bungalow.
0:31:39 > 0:31:44I think once it's completed it will attain somewhere around £200,000.
0:31:44 > 0:31:47It should let for somewhere around £700 per calendar month.
0:31:49 > 0:31:53Well a year or so ago this plot would have cost at least £80,000.
0:31:53 > 0:31:59Reflecting the current market conditions, the guide price was set at £60,000. Did it still stack up?
0:31:59 > 0:32:02Let's find out who bought it at the auction.
0:32:09 > 0:32:11So, a building plot
0:32:11 > 0:32:15in Boroughbridge with the benefit of planning permission,
0:32:15 > 0:32:18plans and planning permission will be included.
0:32:18 > 0:32:20Who'll give me £40,000 for it?
0:32:20 > 0:32:25Can we say £40,000 for the building plot? £40,000, are we bidding?
0:32:25 > 0:32:30At 40, I don't think I can sell it to you, but it's nice to have the bid. At £40,000 only bid.
0:32:30 > 0:32:32At 40 and two anywhere?
0:32:32 > 0:32:34At £40,000, are we all done?
0:32:34 > 0:32:39Nobody here to bid. At £40,000 and two. 42, 42 now.
0:32:39 > 0:32:41At 44, 44 now bid.
0:32:41 > 0:32:43At 44 and six is it now?
0:32:43 > 0:32:45At 44,000 it's for nothing.
0:32:45 > 0:32:47At 44,000, are you sure?
0:32:47 > 0:32:50At £44,000... Are we going to miss it? Five.
0:32:50 > 0:32:5345, 45 and six may you now?
0:32:53 > 0:32:5546, some competition for you.
0:32:55 > 0:32:5946,000 bid. At 46,000 are we all done?
0:32:59 > 0:33:02At 46, I'll take seven. 47.
0:33:02 > 0:33:0347, 48 will you now?
0:33:03 > 0:33:05At 48,000, are you bidding? 48.
0:33:05 > 0:33:08At £48,000, will you show some intent, sir?
0:33:08 > 0:33:11At £48,000...
0:33:11 > 0:33:1950 now. At £50,000 bid, at £50,000, building plot with planning permission for a detached bungalow.
0:33:19 > 0:33:22At £50,000 for the first time, then...
0:33:22 > 0:33:25At £50,000 for the second, if there's no more.
0:33:25 > 0:33:28Your bid, sir, you're happy with it, at 50.
0:33:28 > 0:33:31Second and last time...
0:33:31 > 0:33:33The property is sold at 50,000.
0:33:33 > 0:33:40It was Shane who picked up the land for £50,000, £10,000 below the guide price.
0:33:40 > 0:33:44I went to meet him at the plot on Valuation Lane.
0:33:44 > 0:33:45Why did you want to buy the plot?
0:33:45 > 0:33:49I looked at the local paper.
0:33:49 > 0:33:56I saw it advertised. At the moment, in the current economic conditions, it looked a good buy.
0:33:56 > 0:34:00Tell me a bit about you, is this something that you've done before?
0:34:00 > 0:34:02Well, I run a building company, so.
0:34:02 > 0:34:04So, yes!
0:34:04 > 0:34:06How did you start out?
0:34:06 > 0:34:09I started off as a general labourer.
0:34:09 > 0:34:13One of my first jobs was building a bungalow, when
0:34:13 > 0:34:20I was 16 when I first left school, for a jobbing builder, funnily, his nickname was Bungalow Bill.
0:34:20 > 0:34:25So it's quite apt that we've got this plot to build a bungalow on.
0:34:26 > 0:34:31Presumably this plot of land a year ago would have been a lot more than you paid for it.
0:34:31 > 0:34:38- Definitely. I believe that they were asking well over £100,000 for the plot.- Right.
0:34:38 > 0:34:42The guide price at the auction was £60,000.
0:34:42 > 0:34:45- Yes.- Even at that price, that was a good price in the current market.
0:34:45 > 0:34:48- Luckily, I got it a bit cheaper. - I know.
0:34:48 > 0:34:50It was a good price.
0:34:50 > 0:34:56Remember, the completed new build could be worth less than it would have been a year or two ago.
0:34:56 > 0:35:02With Shane's experience in the building trade, has he thought about putting more than one house here?
0:35:02 > 0:35:10I do believe that the people I purchased it off who gained the planning permission
0:35:10 > 0:35:16did try to get multiple dwellings on the site, but there was objections.
0:35:16 > 0:35:18The local authority...
0:35:18 > 0:35:25They've had to pay back what they were trying to get on it and ended up with the single bungalow.
0:35:25 > 0:35:29Shane's hoping to get the planning permission changed so he can build a
0:35:29 > 0:35:34bedroom in the loft space and put a small sunroom onto the kitchen.
0:35:34 > 0:35:38This will increase the footprint by about 100 square feet.
0:35:38 > 0:35:41How much do you think it'll be worth when it's finished?
0:35:41 > 0:35:48It's difficult to say on the market conditions, but I would say at least up to £210,000.
0:35:48 > 0:35:51210? So it's worth doing for you?
0:35:51 > 0:35:55Those are good margins. Usually you're looking at a third.
0:35:55 > 0:36:01Usually you buy a plot of land for a third of the value of the finished product.
0:36:01 > 0:36:03Build for a third and make a third.
0:36:03 > 0:36:08If all goes well, Shane would stand to make more than a third again in profit.
0:36:08 > 0:36:11So he could be sitting pretty.
0:36:11 > 0:36:15Did he learn these valuable tricks of the trade from his first employer,
0:36:15 > 0:36:19Bungalow Bill, or has he always been this canny?
0:36:19 > 0:36:25Like most builders, I was quite good with me hands at an early age and took on the usual woodwork and
0:36:25 > 0:36:28technical drawing at secondary school.
0:36:28 > 0:36:33My grandfather ran his own business in the village where we lived.
0:36:33 > 0:36:37He needed some painting work doing on the exterior of the shop.
0:36:37 > 0:36:43Instead of getting a local contractor in, I gave him a price to do the work
0:36:43 > 0:36:46and that was my first sort of contract.
0:36:46 > 0:36:48- Great. From your granddad? - At 13, yeah.
0:36:48 > 0:36:50How much was your contract for, do you remember?
0:36:50 > 0:36:52I think it was something like £100.
0:36:52 > 0:36:57He paid me a cheque, I didn't have a bank account at the time.
0:36:57 > 0:37:01I had to get it counter-signed and cashed with the local butcher!
0:37:03 > 0:37:08So, the spirit of Bungalow Bill lives on, but will Shane feel the pain of the current
0:37:08 > 0:37:12housing market when he comes to build here? I guess he's bought it at a good price,
0:37:12 > 0:37:17which is the main thing, but with things as they are, you never know.
0:37:17 > 0:37:20The only way to find out is to join us later in the programme.
0:37:23 > 0:37:25So, did thing goes swimmingly?
0:37:25 > 0:37:29Did our buyers go in with their eyes open or tight shut?
0:37:29 > 0:37:33There's no escape, we're coming back now, ready or not.
0:37:34 > 0:37:40Back to Faversham in Kent and the property we first saw in 2006.
0:37:40 > 0:37:46David and Sally had bought this bungalow for £260,000 and planned to build their dream home here.
0:37:46 > 0:37:51The big question was whether they would salvage it or knock it down and start again?
0:37:53 > 0:37:58When we first returned after ten months, there was a surprise waiting for us down in the woods.
0:37:58 > 0:38:04# If you go down in the woods today, you're sure of a big surprise...
0:38:04 > 0:38:09A stunning new house - and David and Sally had got married.
0:38:09 > 0:38:13Well, since you were last here a lot's changed. The original building
0:38:13 > 0:38:17has disappeared, more or less, although it's still here in spirit.
0:38:17 > 0:38:21Some of it will be incorporated into the new house.
0:38:21 > 0:38:23The new house has
0:38:23 > 0:38:25sprung up very, very quickly.
0:38:25 > 0:38:30After the auction, it took seven months to alter the planning permission
0:38:30 > 0:38:36so they could build an annex. It took only four months to get to this stage.
0:38:41 > 0:38:45Work then started to build the cedar wood house that had been shipped in
0:38:45 > 0:38:50four stages from Canada, complete with builders to assemble it.
0:38:52 > 0:39:01So, what's happening here, there's a wall going to go across here, the doorway, that goes into
0:39:01 > 0:39:06the bedroom, another wall going along here and here
0:39:06 > 0:39:13would be the open-plan kitchen with the satellite area there.
0:39:13 > 0:39:21Here would be the open-plan dining area, coming to this part and then the living area over there.
0:39:21 > 0:39:23It sounded fabulous.
0:39:23 > 0:39:26The shell had gone up and David, along with some builder friends,
0:39:26 > 0:39:29was going to do a lot of the interior work.
0:39:29 > 0:39:34Once finished, this would be a marvellous five-bedroom, four-bathroom dream home
0:39:34 > 0:39:38and Sally couldn't wait to get started on the inside.
0:39:38 > 0:39:41I'm beginning to be able to imagine it being home.
0:39:41 > 0:39:43It's looked like a building site for a long time.
0:39:43 > 0:39:49There were moments when it seemed impossible that we'd ever be ready to move, but now it's
0:39:49 > 0:39:54coming together and I'm really looking forward to living in it.
0:39:54 > 0:39:59Now, two-and-a-half years later, the place is finally finished.
0:39:59 > 0:40:03We've been invited back to see their beautiful new home.
0:40:03 > 0:40:06From the outside the cedar house blends in so well with the
0:40:06 > 0:40:10countryside, that it looks as though it's been here for years.
0:40:13 > 0:40:19And inside, the annex that required that extra planning permission is huge.
0:40:22 > 0:40:29It has its own separate kitchen, a bedroom and a bathroom, all finished to a very high standard.
0:40:29 > 0:40:32In the main part of the house, a light open-plan
0:40:32 > 0:40:38living area has been created, which is divided into two levels.
0:40:41 > 0:40:48The house has a wonderful smell from the Canadian cedar that was used in its construction.
0:40:50 > 0:40:54The kitchen is located a few steps up on a higher level.
0:40:57 > 0:41:03Plus there's this relaxation area with a real fire overlooking the lower level.
0:41:03 > 0:41:06The house has a total of five bedrooms.
0:41:06 > 0:41:09Two are self contained for guests with en-suites.
0:41:09 > 0:41:16Everywhere the fixtures and the finish are superb, including that beautiful marble in the bathrooms.
0:41:16 > 0:41:23David and Sally have been living in the house for two years, slowly doing all the necessary work.
0:41:23 > 0:41:28When you were here last time this was just a shell.
0:41:28 > 0:41:32We were describing what we were going to do here.
0:41:32 > 0:41:34Basically we said we'd put a wall here, which is now here
0:41:34 > 0:41:38and the kitchen is all done. We're really pleased with it.
0:41:38 > 0:41:45On that side over there, we're going to put the dining table, but we got this lovely big dining table which
0:41:45 > 0:41:51happens to be huge, it didn't quite fit, so we changed it and put it further down, as you can see.
0:41:51 > 0:41:59We made this area very cosy by putting a nice wood burner and a few comfortable sofas
0:41:59 > 0:42:04so we can relax whilst doing the cooking and entertaining.
0:42:05 > 0:42:08All the wood in the house really makes it feel cosy here.
0:42:08 > 0:42:11It's a great place for friends and family to meet.
0:42:11 > 0:42:14To match the Canadian cedar they laid solid
0:42:14 > 0:42:19Canadian oak flooring throughout, but it's not all been hard graft.
0:42:19 > 0:42:26We had a huge party here before we put the oak flooring down and so on, but once that was out of the way
0:42:26 > 0:42:28it's been full on to get it finished.
0:42:28 > 0:42:32The moving-in party was great fun because it's a lovely house to have a party in.
0:42:32 > 0:42:37Just celebrating, really, that we got to the point we could live in it.
0:42:37 > 0:42:39We started living in it, really we slept here the night
0:42:39 > 0:42:44of the party, that was the first night that we slept in the house.
0:42:44 > 0:42:48It was camping, basically, for the first few months.
0:42:48 > 0:42:53It didn't matter, the thing is it gradually got better and better all the time.
0:42:53 > 0:42:56It was a lovely experience.
0:42:56 > 0:42:59Sally and David only recently got married.
0:42:59 > 0:43:02The extra two bedrooms they've created on the first floor
0:43:02 > 0:43:05are ideal when their children or friends come to visit.
0:43:11 > 0:43:15For all David and Sally's guests this home in the country provides
0:43:15 > 0:43:17a perfect place to chill out and relax.
0:43:17 > 0:43:19It does feel really calm here
0:43:19 > 0:43:24which could be down to the environmentally friendly Canadian white cedar that's all around.
0:43:28 > 0:43:33The accommodation doesn't end there, because above the detached garage
0:43:33 > 0:43:37there was enough space to add a studio flat as well.
0:43:42 > 0:43:47They have created a fantastic new property, replacing that tired old bungalow that once stood here.
0:43:47 > 0:43:53The spectacular view remains the same and the couple are keen to make the most of it.
0:43:56 > 0:44:00When we were building the property all this was an open veranda.
0:44:00 > 0:44:05Basically this part here up to here
0:44:05 > 0:44:11was just the outside, so we're coming outside quite often, but because of the wind, because
0:44:11 > 0:44:15it's south-west facing, you can see the view and so on, we decided what
0:44:15 > 0:44:21would be a good idea is to put glass in as we have done here, with double-glazed glassing and
0:44:21 > 0:44:26just an added little bonus to the concept of living, we spend most of our time out here.
0:44:26 > 0:44:28It's very simple, it's simplistic.
0:44:28 > 0:44:30It seems quite a magic place.
0:44:30 > 0:44:35They originally paid £260,000 at auction for the bungalow, which they
0:44:35 > 0:44:39then demolished and replaced with this wonderful new house.
0:44:39 > 0:44:42They'd hoped that their final costs would be
0:44:42 > 0:44:47about £525,000 for the build and to complete the interior design.
0:44:47 > 0:44:55Well, the place is now finished, so, what about that budget, did they manage to stay on track?
0:44:55 > 0:45:00We certainly went over budget, but we did make a conscious decision to do that because we realised that it
0:45:00 > 0:45:07was the right thing to do with the house, it was no point cutting corners or skimping on things.
0:45:07 > 0:45:10The whole place needed to be upmarket.
0:45:10 > 0:45:15And it is, with marble in the bathrooms and oak flooring throughout.
0:45:15 > 0:45:19- Any idea how much it has cost? - I suppose
0:45:19 > 0:45:22the actual house itself,
0:45:22 > 0:45:28somewhere around about £200,000 for the shell and the top, but then
0:45:28 > 0:45:34you have to do the foundations, put the electrics in, the plumbing, so you can double that
0:45:34 > 0:45:40and even go higher, but it is considerably more than 525, I can tell you that.
0:45:44 > 0:45:50Time to see what two local estate agents make of the house and its fabulous far-reaching views.
0:45:50 > 0:45:53They last saw it when it had just been built.
0:45:53 > 0:45:56So they're in for a very pleasant surprise.
0:46:01 > 0:46:03Well, what can I say?
0:46:03 > 0:46:07It's just, wow! It's a fantastic house, absolutely stunning.
0:46:07 > 0:46:11I can't believe the change that's gone on since I last saw the property.
0:46:11 > 0:46:16I couldn't have imagined when we first came along here, when it was the derelict bungalow,
0:46:16 > 0:46:20that something as substantial and fantastic as this could have been built.
0:46:20 > 0:46:23The property's been finished to a very high standard,
0:46:23 > 0:46:28using all good-quality materials and the finish is exceptional.
0:46:28 > 0:46:31I think it's the attention to detail that really stands out for me.
0:46:31 > 0:46:38It's an imposing property anyway, but the thought put into it for the bathrooms and the light fittings,
0:46:38 > 0:46:41the amount of light that comes into the property is sensational.
0:46:41 > 0:46:48Well, these two experts seem sold on this family home, but will that be reflected in their valuations?
0:46:48 > 0:46:54Remember, Dave and Sally paid £260,000 on auction day and all we know is
0:46:54 > 0:46:58that their budget is well above 525,000,
0:46:58 > 0:47:03taking their total spend to considerably more than £785,000.
0:47:03 > 0:47:10If I was marketing the property at the moment, I would anticipate a figure in the region of £900,000.
0:47:10 > 0:47:18If you put it on the market at £975,000, you should be achieving around the 950.
0:47:18 > 0:47:20- Fantastic.- Wow!
0:47:20 > 0:47:22That's pretty good.
0:47:22 > 0:47:26- Great news.- Hmm, very good news.
0:47:27 > 0:47:31Interestingly, two years ago, when the two estate agents first
0:47:31 > 0:47:36saw the shell of the building, they both agreed on a figure of 750,000.
0:47:36 > 0:47:42Now they've agreed on a much higher figure, so, how does that make David feel?
0:47:42 > 0:47:44Well, I feel amazing.
0:47:44 > 0:47:48There is a recession on where we are at the moment, so
0:47:48 > 0:47:53to go up that much finished, it just shows what we've managed to achieve.
0:47:53 > 0:47:58It's great. The value of the property must reflect on
0:47:58 > 0:48:04a lot of the work we've put into it, the marbled bathrooms and bespoke kitchen, etc.
0:48:04 > 0:48:09We were a bit nervous at the beginning, but putting all this in, especially the oak flooring,
0:48:09 > 0:48:17which was above our budget, but obviously it made sense and we're very happy with it.
0:48:17 > 0:48:20So, a dream new home for these newlyweds.
0:48:20 > 0:48:24I sometimes wake up and think does this place really exist?
0:48:24 > 0:48:28Are we really living in it? So it still has a magical feel to it.
0:48:30 > 0:48:32We're still madly in love with each other, after all!
0:48:32 > 0:48:35Yes, even after all this!
0:48:47 > 0:48:54This mature garden plot in Valuation Lane, Boroughbridge was bought at auction for £50,000.
0:48:54 > 0:49:00The plot's in a conservation area and came with planning consent and architect's drawings.
0:49:06 > 0:49:12The new owner, Shane, hoped to be able to modify the planning consent slightly.
0:49:12 > 0:49:20The footprint for the building is roughly about 850 square feet of bungalow.
0:49:20 > 0:49:24We're going to try and amend that, slightly.
0:49:24 > 0:49:27So, did Shane manage to get the plans changed?
0:49:27 > 0:49:32Yes, he did. Now he's got a bungalow that's out of this world.
0:49:34 > 0:49:38The graffitied walls have gone, a brand-new garage put in its place.
0:49:41 > 0:49:46There's an impressive 30-foot kitchen as well as a spacious front room.
0:49:52 > 0:49:55There are also three bedrooms, one en suite.
0:49:55 > 0:49:58Did altering the plans hold him up at all?
0:49:58 > 0:50:03I wanted to increase the size of the property. So what we did is dug out,
0:50:03 > 0:50:10basically, two sets of footings, one for the original scheme and one for the scheme that I required.
0:50:10 > 0:50:12I knew with the timings, by the time I got the concrete
0:50:12 > 0:50:16poured and started building up to damp-proof level, hopefully we'd
0:50:16 > 0:50:23have a decision from the planner and I knew which size building we'd be taking out of the ground.
0:50:23 > 0:50:30Luckily enough, it was down to the wire, but that's what happened and we was passed the larger scheme.
0:50:30 > 0:50:35So we just discontinued the footings from the original scheme
0:50:35 > 0:50:37and concreted over them.
0:50:37 > 0:50:41Part of the planning process stipulates, because it's in a conservation area, obviously
0:50:41 > 0:50:45the materials have got to blend in with the area and...
0:50:47 > 0:50:50the historical element of the town, etc.
0:50:50 > 0:50:57So, that in mind, also minded of what I wanted the property to look like, I went out and
0:50:57 > 0:51:03found the materials that I think would suit best to the area.
0:51:03 > 0:51:09Brick, tile, etc, but also with stone sills and timber windows.
0:51:09 > 0:51:12So it's a traditional effect
0:51:12 > 0:51:14but finished to a modern standard.
0:51:14 > 0:51:19This modern but traditional effect has been carried on throughout the property.
0:51:19 > 0:51:22There are high skirting boards...
0:51:24 > 0:51:26..dado rails...
0:51:28 > 0:51:30..and the architraving.
0:51:36 > 0:51:40Clever use of oak in the doors and some of the floors
0:51:40 > 0:51:44has given the whole house a lovely warm feel about it.
0:51:54 > 0:52:01Well the kitchen's the room where we benefited most from the planning permission that we received.
0:52:03 > 0:52:08Obviously with the garden room added on to the kitchen,
0:52:08 > 0:52:13we were able to give over a nice large kitchen/diner
0:52:13 > 0:52:17which works very well and it's very fashionable at the moment.
0:52:17 > 0:52:22The kitchen, we used a nice cream type unit,
0:52:22 > 0:52:27neutral colours, in framed units
0:52:27 > 0:52:31with an old dresser so it gives a two-tone effect and the oak
0:52:31 > 0:52:36compliments the oak flooring and the oak internal doors that we used.
0:52:36 > 0:52:39I'm looking at the space now, it's really worked out well for
0:52:39 > 0:52:43the property and completed the whole project.
0:52:43 > 0:52:44Finished it off nicely.
0:52:48 > 0:52:51It's not just the kitchen that's been finished off beautifully.
0:52:51 > 0:52:57The three bedrooms and two bathrooms have also been done to the same high specification.
0:53:13 > 0:53:19And when you go outside, the high standards continue in the very private garden.
0:53:21 > 0:53:26As you can see, we decided to fully landscape the rear of the property.
0:53:26 > 0:53:30Decking, just to the rear of the garden room.
0:53:30 > 0:53:38To suit the orientation of the garden, the south-facing aspect and the walled garden aspect,
0:53:38 > 0:53:43we decided to landscape and put the flowers in and the turfing, so that
0:53:43 > 0:53:47people could fully appreciate the final property.
0:53:51 > 0:53:55The garden's looking great, as is the bungalow.
0:53:55 > 0:54:01Just to make any buyer feel safe, there are electric gates and other security measures.
0:54:01 > 0:54:03But this couldn't have been cheap.
0:54:03 > 0:54:10Well, obviously, the budget's increased because of the increase of the property size and also
0:54:10 > 0:54:13because of the upspeccing of it and completely finishing everything.
0:54:13 > 0:54:20I would estimate it to be somewhere in the region of 130 to 150 on the spend.
0:54:20 > 0:54:24The property is going to be put on the market.
0:54:24 > 0:54:28We'll seek out somebody to buy it.
0:54:28 > 0:54:38Added to the original £50,000 Shane spent at auction, he's now spent between 180 and £200,000.
0:54:38 > 0:54:42So, to check that the value of this plot on Valuation Lane is going in
0:54:42 > 0:54:47the right direction, we invited along two local property experts.
0:54:53 > 0:54:55I saw the plot before the property was built.
0:54:55 > 0:54:57The plot itself was quite tight.
0:54:57 > 0:54:59So I'm amazed to see what he's managed to get on.
0:54:59 > 0:55:03The property has been constructed to a high standard.
0:55:03 > 0:55:05I'm very impressed the way it's fitted out.
0:55:05 > 0:55:09The first impression is one of quality.
0:55:09 > 0:55:12The builder has given great attention to detail
0:55:12 > 0:55:15which is fairly unusual in modern building terms today,
0:55:15 > 0:55:18from the lovely deep skirting boards, the
0:55:18 > 0:55:24kitchen and bathroom fittings, the landscaping of the garden is things you don't normally see.
0:55:24 > 0:55:26It's a finished product.
0:55:26 > 0:55:31That is going to be a number of key selling points that will appeal to the target market.
0:55:31 > 0:55:33The outside space is delightful.
0:55:33 > 0:55:35He's walled the garden, it's catching the sun.
0:55:35 > 0:55:39It's beautifully laid out and easy maintenance.
0:55:39 > 0:55:44Good property, good garden with easy maintenance so a promising valuation?
0:55:44 > 0:55:50If I had to put this property on the market, I'd be looking for a figure of around £300,000.
0:55:50 > 0:55:54My opinion, I will price the property on the market, at an asking price of £345,000.
0:55:54 > 0:56:01I suggest that the £345,000 valuation is more in line with the true value of the property.
0:56:01 > 0:56:06The lower valuation of £300,000 is a conservative valuation
0:56:06 > 0:56:13and I've actually received an offer far in excess of the lower valuation.
0:56:13 > 0:56:17Shane took a risk buying this plot, but he's likely to make a pre-tax
0:56:17 > 0:56:23profit of between 100 and £165,000, minus normal reductions.
0:56:23 > 0:56:28It's in line with what you'd expect for a high-risk development.
0:56:29 > 0:56:32Risk equals reward.
0:56:32 > 0:56:39Not everyone who takes risks gets reward, but it's certainly worked for Shane and he's done really well here.
0:56:40 > 0:56:44Well, that's all for now, but we'll have plenty more for you next time.
0:56:44 > 0:56:48- See you soon for more Homes Under the Hammer.- Goodbye.- Goodbye.
0:57:08 > 0:57:11Subtitles by Red Bee Media Ltd