0:00:02 > 0:00:03Welcome to Homes Under The Hammer.
0:00:03 > 0:00:06Whether it's a plot, a home or a commercial opportunity...
0:00:06 > 0:00:09There's always a huge variety on offer in an auction catalogue.
0:00:09 > 0:00:15So, join us now as we follow some of the thousands of people who buy their home under the hammer.
0:00:40 > 0:00:44The bidding process can be quite a nerve-racking experience.
0:00:44 > 0:00:48But, if you've done your research and you've worked out your budget,
0:00:48 > 0:00:49you could actually enjoy it.
0:00:49 > 0:00:53So, let's see what today's bidders bought.
0:00:53 > 0:00:56This house in Southampton's been extended.
0:00:56 > 0:01:01There are plenty of rooms, but where will they end?
0:01:01 > 0:01:03It's very long. It just goes on and on and on.
0:01:03 > 0:01:08In London, I reckon this property had a remarkably low guide price.
0:01:08 > 0:01:10Ching, ching!
0:01:10 > 0:01:13Now, for that guide price, you really are getting your money's worth.
0:01:13 > 0:01:17And this three-bedroom end-of-terrace in Nottinghamshire's
0:01:17 > 0:01:20ideal for someone with a burning love of features.
0:01:20 > 0:01:24A very small fireplace, but it is a feature.
0:01:24 > 0:01:27All of these properties went to auction
0:01:27 > 0:01:32and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:32 > 0:01:33That is yours, sir.
0:01:36 > 0:01:41You don't have to be a property expert to know that property prices have gone south, recently.
0:01:41 > 0:01:45South is exactly where I am, in the southern city of Southampton,
0:01:45 > 0:01:48home to the Spitfire and from where the Titanic
0:01:48 > 0:01:51sailed on its doomed maiden voyage.
0:01:52 > 0:01:56So, two iconic periods of British history in one location.
0:01:56 > 0:02:02But will today's property, which had a guide price of 115,000 to 120,000,
0:02:02 > 0:02:07leave me on cloud nine or sinking in despair?
0:02:07 > 0:02:10Well, it's an oddly shaped, detached house
0:02:10 > 0:02:12with three or maybe four bedrooms,
0:02:12 > 0:02:18depending on how you configure this rather higgledy-piggledy place behind the shop.
0:02:19 > 0:02:23Now, here's a classic example of why you need to visit a property
0:02:23 > 0:02:25before you think about buying it.
0:02:25 > 0:02:27According to the auction catalogue,
0:02:27 > 0:02:30this is a three-bedroom detached house.
0:02:30 > 0:02:31Further down the particulars,
0:02:31 > 0:02:35it says the commercial ground floor shop is not included with the freehold title.
0:02:35 > 0:02:40That shop is this shop here. The property that's up for auction is adjoining the back of it.
0:02:40 > 0:02:44What's very significant, is that one of the rooms of that property
0:02:44 > 0:02:46actually comes right above this shop.
0:02:46 > 0:02:48It's what they call a flying freehold.
0:02:48 > 0:02:53That is significant and could give complications when it comes to the legal side of things.
0:02:53 > 0:02:56It's another example of why it's really important
0:02:56 > 0:02:59to look at the catalogue and to read the legal pack.
0:02:59 > 0:03:01Let's take a look inside.
0:03:01 > 0:03:05The property went to auction at a guide price of 115,000 to 120,000.
0:03:05 > 0:03:10# Come fly with me Let's fly, let's fly away... #
0:03:12 > 0:03:14Bearing that flying freehold in mind,
0:03:14 > 0:03:17let's see if the inside hits the heights.
0:03:17 > 0:03:21First impressions, well, a very steep staircase.
0:03:21 > 0:03:25There's an immediate return there. We'll check that out in a minute.
0:03:25 > 0:03:28The other thing I noticed is the fact we've got this concrete floor.
0:03:28 > 0:03:33Obviously not original and, who knows how that's been put in.
0:03:33 > 0:03:36In fact, what I'm seeing is, it looks to me like somebody
0:03:36 > 0:03:38has already started doing some work on a damp problem.
0:03:38 > 0:03:41If this floor wasn't put in right, that could well have been
0:03:41 > 0:03:45a deciding factor in terms of creating a damp problem.
0:03:45 > 0:03:50I'm a bit concerned about the huge great holes in the walls.
0:03:50 > 0:03:52Not supported very well at all.
0:03:52 > 0:03:55Obviously, some serious work going on there
0:03:55 > 0:03:58to try and solve what was probably a serious problem with damp.
0:03:58 > 0:04:02I'm puzzled. Did the previous owner start the renovation,
0:04:02 > 0:04:05hit major problems and decide to give up and sell,
0:04:05 > 0:04:07or has the new owner started work already?
0:04:07 > 0:04:11More digging and brick removal in the rear sitting room.
0:04:11 > 0:04:15Really serious amounts of the wall been taken away.
0:04:15 > 0:04:18It's not a bad-sized space. The house itself is interesting.
0:04:18 > 0:04:21It's very long. It just goes on, and on, and on.
0:04:21 > 0:04:25The kitchen here, the units don't look like they're that old to me.
0:04:25 > 0:04:29They're clearly very tired and you could definitely give this place
0:04:29 > 0:04:33a bit of a spruce by sorting this room out. Then it carries on.
0:04:33 > 0:04:38Down this corridor where you'll find the only loo and bathroom in the property.
0:04:38 > 0:04:42That's not ideal. There's a separate door there which is interesting.
0:04:42 > 0:04:46It gives you flexibility in terms of how you might actually use this place.
0:04:46 > 0:04:50Especially when I tell you that there's yet another bedroom.
0:04:50 > 0:04:52It's classed as a reception room at the moment.
0:04:52 > 0:04:54I don't know why. It's a bedroom.
0:04:54 > 0:04:55This property's had more extensions
0:04:55 > 0:04:58than a footballer's wife's hair.
0:04:58 > 0:05:01It just goes on and on.
0:05:02 > 0:05:05And there's still this large back garden.
0:05:05 > 0:05:08Time to view the top floor.
0:05:08 > 0:05:12Here we have that staircase with the interesting return.
0:05:12 > 0:05:15It could actually be the solution to our problems.
0:05:15 > 0:05:16Up here there are problems.
0:05:16 > 0:05:20Small landing. To the front you've got a bedroom which flies over the top
0:05:20 > 0:05:22of the property downstairs.
0:05:22 > 0:05:26That's your flying freehold. The problems, more seriously, are here.
0:05:26 > 0:05:30Bedroom two here, but bedroom three can only be accessed
0:05:30 > 0:05:32through bedroom two, so that isn't ideal.
0:05:32 > 0:05:35The solution could be to swap around the the stairs to create a corridor.
0:05:35 > 0:05:39It would then give you the individual access to each of these rooms.
0:05:39 > 0:05:40That's what you need to do.
0:05:40 > 0:05:43Although the property's large enough,
0:05:43 > 0:05:47I would resist the temptation to convert it into two flats.
0:05:47 > 0:05:51If you could sort out the stairs and create separate access to each bedroom,
0:05:51 > 0:05:56renting out each individual room then becomes a more attractive proposition.
0:05:58 > 0:05:59What will a local estate agent think
0:05:59 > 0:06:02of this property with its flying freehold?
0:06:02 > 0:06:07Remember, it went to auction with a guide price of 115,000 to 120,000.
0:06:07 > 0:06:11It needs a fair bit of work doing to it. Work has probably started.
0:06:11 > 0:06:14It's got a lot of bedrooms and a lot of reception rooms.
0:06:14 > 0:06:17It has got the potential to become a good investment.
0:06:17 > 0:06:20There is a fair amount of reworking that needs to be done
0:06:20 > 0:06:21to the property to allow that.
0:06:21 > 0:06:24Landlords around here would look at it as the bedrooms -
0:06:24 > 0:06:29three bedrooms, two reception rooms, potentially a four or five-bedroom let.
0:06:29 > 0:06:32When you've got rooms that go through from one to another,
0:06:32 > 0:06:36obviously, it can't be accommodated for bedrooms along those lines.
0:06:36 > 0:06:40And, of course, there's the issue of that flying freehold.
0:06:40 > 0:06:43This is the property for an experienced developer.
0:06:46 > 0:06:50How much could it be worth once completely renovated?
0:06:50 > 0:06:54What rental income could be achieved as a single let?
0:06:54 > 0:06:57Rental valuation for the property, as a whole property,
0:06:57 > 0:07:00would probably be around £700 per calendar month.
0:07:00 > 0:07:05Resale valuation for the property, once renovated, would be approximately £160,000.
0:07:05 > 0:07:11# Come fly with me, let's fly let's fly away... #
0:07:11 > 0:07:13Well, interesting one, this one.
0:07:13 > 0:07:17A lot of property and good potential for a buy-to-let, I would say.
0:07:17 > 0:07:20However, I am concerned about that flying freehold.
0:07:20 > 0:07:23Let's hope whoever bought it checked it out
0:07:23 > 0:07:25before they paid their money at auction.
0:07:25 > 0:07:27We're now going to go to lot 24,
0:07:27 > 0:07:31This is a three-bedroom property with three separate reception rooms.
0:07:31 > 0:07:34An ideal landlord or investment purchase.
0:07:34 > 0:07:36I'm going to open the bidding on this.
0:07:36 > 0:07:42Somebody wish to start at just £110,000? 110 we have. Thank you.
0:07:42 > 0:07:44I now need £111,000.
0:07:44 > 0:07:47111 with you, sir.
0:07:47 > 0:07:50Back to you at 112. 112 we have got.
0:07:50 > 0:07:56113? 113,000. 114?
0:07:56 > 0:08:01Now, I need 115. 115. I need 116.
0:08:01 > 0:08:03116,000 is bid.
0:08:03 > 0:08:05117's on the telephone.
0:08:05 > 0:08:08117 on the telephone.
0:08:08 > 0:08:10The gentleman's back at 118.
0:08:10 > 0:08:17119,000. I've got 119 here on the phone, we're looking for 120.
0:08:17 > 0:08:20119,500.
0:08:20 > 0:08:22120 is bid on the telephone.
0:08:22 > 0:08:25Now looking for 120,500.
0:08:25 > 0:08:29120,500 is now back in the room.
0:08:29 > 0:08:33120,500.
0:08:33 > 0:08:36No, a shake of the head from the telephone table.
0:08:36 > 0:08:41To you, sir, for the first, at 120,500 for the second,
0:08:41 > 0:08:45for the third and final time, sold to you, sir. Your number, please.
0:08:45 > 0:08:51The final successful bid of 120,500 was made by Jason.
0:08:51 > 0:08:54He's a bit of an expert at property restoration.
0:08:54 > 0:08:58I met up with him at his new purchase to hear about his plans.
0:08:58 > 0:09:02- Jason, good to meet you. Congratulations!- Thank you. - Why did you want to buy this place?
0:09:02 > 0:09:04It was primarily to protect the shop
0:09:04 > 0:09:07which I've worked on for about two years.
0:09:07 > 0:09:10- You own the antiques shop at the front?- I do, yes.- Oh, great!
0:09:10 > 0:09:15I wanted to protect it from unknown tenants and that sort of thing.
0:09:15 > 0:09:18I spent about two years restoring it.
0:09:18 > 0:09:23I went to endless lengths to try to do it the way a Victorian would do it.
0:09:23 > 0:09:27Working on listed buildings is really what I'd like to do.
0:09:27 > 0:09:29For the moment, I think this will have to do.
0:09:29 > 0:09:33You've gone for something which is fairly straightforward here.
0:09:33 > 0:09:36I guess you're interested in this because you own the building down below.
0:09:36 > 0:09:38- Yes.- That wasn't a problem.
0:09:38 > 0:09:41Correct, yes.
0:09:41 > 0:09:44- You know the bloke who owns the place above?- I'm not going to sue myself.
0:09:44 > 0:09:46What's the plan for the place?
0:09:46 > 0:09:51I could knock it into five-bedroom lets.
0:09:51 > 0:09:54I think it's a little bit cramped and I would limit
0:09:54 > 0:09:56the kind of person that would want it.
0:09:56 > 0:09:59I probably will make it a four bedroom let.
0:09:59 > 0:10:03Before that happens, Jason's got to sort out the layout.
0:10:03 > 0:10:07But judging by the attention to detail he has showed in his shop
0:10:07 > 0:10:08that could prove pricey.
0:10:08 > 0:10:12What are you going to do about the layout upstairs
0:10:12 > 0:10:15cos it's not ideal, is it? You need a corridor up there.
0:10:15 > 0:10:17Well, there's more than one way of doing this,
0:10:17 > 0:10:21but my current thoughts, if I'm entirely honest,
0:10:21 > 0:10:24are to take six steps off the landing
0:10:24 > 0:10:25holding on to that wall there
0:10:25 > 0:10:28and come in to the first room, the middle room.
0:10:28 > 0:10:33- Oh.- And have a dry line wall going into the end room
0:10:33 > 0:10:36so that I have created three rooms instead of two lettable rooms.
0:10:36 > 0:10:40So you can go up 90 degrees or you can go straight on to another six steps
0:10:40 > 0:10:44which then lead into a corridor which connects up to the end room.
0:10:44 > 0:10:46What about downstairs?
0:10:46 > 0:10:50Well, I'm being a touch more practical with this building
0:10:50 > 0:10:51than the one at the front.
0:10:51 > 0:10:55Probably a new kitchen. The bathroom I may well leave alone.
0:10:55 > 0:10:58Apart from the tiles. Then the carpets throughout.
0:10:58 > 0:11:01- It's not that big a job. - How much are you planning to spend?
0:11:01 > 0:11:05I think it could cost, including interest payments to the bank,
0:11:05 > 0:11:09about £16,000, but if it went to about £21,000
0:11:09 > 0:11:11that wouldn't surprise me at all.
0:11:11 > 0:11:13Who's doing the work?
0:11:13 > 0:11:17Me and somebody I've known for a few years, he's very good.
0:11:17 > 0:11:20We'll just use odd bits of labour here and there
0:11:20 > 0:11:22bring in plumbers when we need them.
0:11:24 > 0:11:27Jason's determined to do this property up to the highest standard.
0:11:27 > 0:11:31But I'm worried he's losing touch with the limited potential here.
0:11:31 > 0:11:33I feel his first love is renovation.
0:11:33 > 0:11:39He showed me the major work that he's already started to tackle, the damp.
0:11:39 > 0:11:42Well, tell me what an Earth you've started to do here?
0:11:42 > 0:11:48Well...it had some appalling damp problems.
0:11:48 > 0:11:51I've got all these meters and it was shooting right up to the top of the scale.
0:11:51 > 0:11:56What we're doing is, you do it in small sections at a time...
0:11:56 > 0:12:00You've taken massive amounts out of this wall. Won't it fall down?
0:12:00 > 0:12:02No, it doesn't worry me, greatly.
0:12:02 > 0:12:06This, this isn't the old Victorian plaster.
0:12:06 > 0:12:09This is modern cement, you can see the grey colour.
0:12:09 > 0:12:11It's very strong and it will hold it up.
0:12:11 > 0:12:14You can do about a metre at a time quite safely.
0:12:14 > 0:12:18Just build it up again with, I think, three damp courses.
0:12:18 > 0:12:21The original one that's slate will then feed a plastic because
0:12:21 > 0:12:24plastic you can bond together well with various things.
0:12:24 > 0:12:27The top one will be lead and nothing will ever pass through lead.
0:12:27 > 0:12:29- That's this here?- Yes.
0:12:29 > 0:12:32- You're literally putting a layer of lead all around here?- Yes.
0:12:32 > 0:12:36One thing's for sure, nobody can accuse you of not doing a proper job of it.
0:12:36 > 0:12:40- That's very kind, thank you. - It's true. Good luck with it all.
0:12:40 > 0:12:43- Pleasure.- We look forward to seeing how it turns out.
0:12:43 > 0:12:45Good, so do I.
0:12:50 > 0:12:53There are all sorts of reasons why people buy property
0:12:53 > 0:12:57and, for Jason, guaranteeing he's not going to have nasty neighbours was a major one.
0:12:57 > 0:13:00You certainly can't argue that he's going to
0:13:00 > 0:13:02do a great job on sorting out the damp.
0:13:02 > 0:13:07As to everything else, you can find out how he gets on later in the show.
0:13:11 > 0:13:14For the next property that went under the hammer, I've come to Plumstead,
0:13:14 > 0:13:17a suburb of the London Borough of Greenwich.
0:13:17 > 0:13:22With transport links to the city centre, this could be a plumb place to find property bargains.
0:13:22 > 0:13:24This is Vicarage Park.
0:13:24 > 0:13:28It's an area that's predominantly Victorian houses.
0:13:28 > 0:13:34Here's the property. It had a guide price of £200,000 to £225,000.
0:13:34 > 0:13:37A small price to play for three flats in this four-storey house
0:13:37 > 0:13:39with great links to the centre of town.
0:13:39 > 0:13:43It's looking a little bit sad and grubby on the outside.
0:13:43 > 0:13:46I'm going to have a look inside.
0:13:46 > 0:13:50The run down exterior might explain why that guide price was so low.
0:13:50 > 0:13:54And I don't you think it's a hopeful sign for the state of the interior either.
0:13:54 > 0:13:58Now... this house has obviously been empty for long time
0:13:58 > 0:14:02judging by the sea of newspapers and letters everywhere.
0:14:02 > 0:14:05There's a few Christmas decorations thrown into the equation, as well.
0:14:05 > 0:14:10But on first glance, it's looking rather tatty.
0:14:10 > 0:14:13We've got wallpaper hanging off everywhere. There's a bathroom here.
0:14:13 > 0:14:16Kitchen at the back, bedroom to the right
0:14:16 > 0:14:20and a really nice sized lounge and high-ceiling.
0:14:20 > 0:14:22Big bay window there.
0:14:22 > 0:14:25It's got the bones of being a nice property.
0:14:25 > 0:14:27But I just want to explore a bit more first.
0:14:29 > 0:14:32At the back there's a drab and dingy yard which feels a bit oppressive.
0:14:32 > 0:14:36But it does lead-up to a surprisingly large, overgrown garden
0:14:36 > 0:14:40and that, I reckon, has real potential.
0:14:40 > 0:14:42As for the house, there are another three floors
0:14:42 > 0:14:47and two flats to see so it's onwards and upwards.
0:14:47 > 0:14:50Now, this is the first floor flat.
0:14:50 > 0:14:54You don't know what you're going to find every time you open a door.
0:14:54 > 0:14:57There's lots of rooms. It's a bit of a maze in here.
0:14:57 > 0:14:59A kitchen area, you've got a bedroom, a bathroom
0:14:59 > 0:15:03and to the front of the property a rather large sitting room area.
0:15:03 > 0:15:05You've got nice high ceilings in here.
0:15:05 > 0:15:09I've got to say, it's quite a good space
0:15:09 > 0:15:10with lots of light coming in.
0:15:10 > 0:15:14But it feels like it's been carved up in a rather odd way.
0:15:14 > 0:15:17I'd employ the skills of an architect to really have
0:15:17 > 0:15:22a good, hard look at this building and think of a much better layout.
0:15:22 > 0:15:25Sadly, you've got no beautiful original features.
0:15:25 > 0:15:28You do have this rather big sash bay window.
0:15:28 > 0:15:32But somebody's decided to stick some lead on the windows
0:15:32 > 0:15:34to give you that sort of leaded light effect.
0:15:34 > 0:15:37It's not really working for me, I have to say!
0:15:37 > 0:15:41Let's go upstairs and see what's going on on the top floor.
0:15:41 > 0:15:46Upstairs, there's a split level flat with three good-sized bedrooms.
0:15:46 > 0:15:51It extends up into the attic space and has got me thinking,
0:15:51 > 0:15:56did the original owner miss a trick here by only having three flats?
0:15:58 > 0:16:01I think there's a lot of potential with this building
0:16:01 > 0:16:06and here is why. I would divide this flat in to two separate dwellings
0:16:06 > 0:16:08with its own front door just here.
0:16:08 > 0:16:12I would also create a ground-floor extension and call that a two bed.
0:16:12 > 0:16:19Making this property four separate units, not three as it's currently laid out.
0:16:19 > 0:16:20Ching, ching!
0:16:20 > 0:16:23Now for that guide price you are getting your money's worth.
0:16:25 > 0:16:30Remember the property went to auction guided at £200,000 - £225,000.
0:16:30 > 0:16:35Creating a fourth flat would require a further separate bathroom and kitchen.
0:16:35 > 0:16:39But it could prove to be a very valuable option.
0:16:41 > 0:16:43Time to ask a local estate agent
0:16:43 > 0:16:46what he thinks is the best way ahead.
0:16:46 > 0:16:51Is there any potential in converting it back into one family home?
0:16:51 > 0:16:55I don't see the benefit of doing that, financially,
0:16:55 > 0:16:57there's not the money in this area because
0:16:57 > 0:17:00the prices in this area will be capped off
0:17:00 > 0:17:02and you really wouldn't get the money back.
0:17:02 > 0:17:04It's always best to split them into flats,
0:17:04 > 0:17:06you'll get a lot more money back that way.
0:17:06 > 0:17:11With a good renovation of the three flats costing about
0:17:11 > 0:17:14£65,000 - £70,000, what sort of returns are we talking about?
0:17:16 > 0:17:19For a one-bedroom you'd be looking at about 130,000 - 135,000.
0:17:19 > 0:17:23For a two bedroom, you'd be looking at £150,000 - £160,000.
0:17:23 > 0:17:29So with that current layout, the flats could fetch a total of £430,000.
0:17:29 > 0:17:34And the rental returns offer a very healthy 9% yield.
0:17:38 > 0:17:41So, definitely a great one to go for.
0:17:41 > 0:17:44I think it's a fab rental property in an ideal area.
0:17:44 > 0:17:47Let's see who took this on when it went under the hammer.
0:17:50 > 0:17:53Lot 160.
0:17:53 > 0:17:57Freehold mid-terraced building with two self-contained flats
0:17:57 > 0:18:00and self-contained maisonettes. Where shall we start?
0:18:00 > 0:18:02Someone give me 180. Thank you, sir.
0:18:02 > 0:18:05180 sitting on my left. 182,500?
0:18:05 > 0:18:08182,500. 185,000.
0:18:08 > 0:18:10185,000. 187,500.
0:18:10 > 0:18:11187,500 on the doorway.
0:18:11 > 0:18:14190,000 over there. 192,500?
0:18:14 > 0:18:16192,500. 195,00, 197,500?
0:18:16 > 0:18:21200,000. 202,500. 205,000. 207,500.
0:18:21 > 0:18:23210. 212,500.
0:18:23 > 0:18:27215,000. 217,500.
0:18:27 > 0:18:31220,00, 222,500. 225,000, 227,500.
0:18:31 > 0:18:35230,000. 232,500. 235,000. 237,500.
0:18:35 > 0:18:37240,000. 242,500? No?
0:18:37 > 0:18:41It's your bid at 240,000. 242,500?
0:18:41 > 0:18:45Thank you. 242,500. 245,000? 247,500?
0:18:45 > 0:18:48Right behind you, 247,500. 250,000 sitting down.
0:18:48 > 0:18:51252,500.
0:18:51 > 0:18:53It's with you, sir, sitting down.
0:18:53 > 0:18:57255,000. 257,500 anywhere else?
0:18:57 > 0:18:58Back on the door. 257,500.
0:18:58 > 0:19:01260,000. 262,500? No? Why not?
0:19:01 > 0:19:05261,000. 262,000. 263,000.
0:19:05 > 0:19:07No?
0:19:07 > 0:19:10Still with you here, reservation sir, at 262,000 on my left.
0:19:10 > 0:19:15The first time at 262,000, the second at 262,000
0:19:15 > 0:19:18and for the third and final time at £262,000.
0:19:18 > 0:19:20Are we all done? I think we are.
0:19:20 > 0:19:22Sold to you sir at £260,000.
0:19:22 > 0:19:24Well fought, sir.
0:19:26 > 0:19:29That successful and really keen bidder
0:19:29 > 0:19:32is Mayur and his wife Anjenna.
0:19:32 > 0:19:37They bought these flats for £262,000
0:19:37 > 0:19:41£47,000 over the top guide price of £225,000.
0:19:42 > 0:19:44Guys, congratulations.
0:19:44 > 0:19:49I've got to say, you looked very keen and very happy at the end of that auction.
0:19:49 > 0:19:51I was indeed.
0:19:51 > 0:19:54What's the story behind you keeping your hand up in the air?
0:19:54 > 0:19:59I thought if my hand is up in the air, all the other bidders will realise this hand isn't going down.
0:19:59 > 0:20:02And say, "OK, this guy's not going down, let's stop".
0:20:02 > 0:20:05Fortunately everybody else put their hands down.
0:20:05 > 0:20:10We couldn't see you because you were hiding behind somebody else. 262,000 is a good price.
0:20:10 > 0:20:16It's a good price and during the auction I was thinking, don't keep your hand up, put your hand down.
0:20:16 > 0:20:19But I didn't know what his game plan was.
0:20:19 > 0:20:26Mayur's individual bidding strategy certainly paid off and that's not all.
0:20:26 > 0:20:28They bought without viewing it first.
0:20:28 > 0:20:33It was recommended by Suresh, a trusted friend who's also a property sourcer.
0:20:33 > 0:20:40That was unusual, but the real surprise came when they told me why they had bought the house.
0:20:40 > 0:20:43We've got another two properties that are rented out at the moment.
0:20:43 > 0:20:46We want to go and live in India and work on a couple of projects.
0:20:46 > 0:20:50One project is for underprivileged children and we want to run a school for them.
0:20:50 > 0:20:56The other project is going from one village to another providing sanitation for them.
0:20:56 > 0:20:59Fantastic. That's such an amazing cause.
0:20:59 > 0:21:03You guys are working really hard to get this up and running so you can ultimately go out and help others?
0:21:03 > 0:21:07- That's right. - How involved have you been out in India with these projects?
0:21:07 > 0:21:11We got married in the foothills of the Himalayas and they are running
0:21:11 > 0:21:14some projects so we want to get involved with them.
0:21:14 > 0:21:17So, Anjenna, how do you feel about the project in India?
0:21:17 > 0:21:19I'm quite excited about it.
0:21:19 > 0:21:24I love India, I love the weather, so I'm looking forward to it.
0:21:24 > 0:21:29It's a completely different change of lifestyle, so I'm looking forward to it.
0:21:29 > 0:21:33What a fantastic reason for getting into property developing.
0:21:33 > 0:21:38Although this purchase is but a step to even bigger things beyond, what have they planned here?
0:21:38 > 0:21:41At the moment on the ground floor we've got a one-bedroom flat.
0:21:41 > 0:21:45We're going to turn that into a two-bedroom flat.
0:21:45 > 0:21:48On the ground floor there's going to be an extension at the back as well.
0:21:48 > 0:21:52The first floor at the moment is a one-bedroom flat.
0:21:52 > 0:21:55We're going to turn that into a two-bedroom flat as well.
0:21:55 > 0:22:01The second and the third floor are a three-bedroom flat. We'll change the second floor into a two-bedroom flat.
0:22:01 > 0:22:04And the top, we'll turn into a one-bedroom flat.
0:22:04 > 0:22:08I reckon adding that fourth flat on the top floor is the best way to take this place forward,
0:22:08 > 0:22:12but to achieve that the couple have given their team of builders
0:22:12 > 0:22:16a pretty hectic renovation schedule of three to four months.
0:22:16 > 0:22:21Mayur has bags of confidence, but little in the way of project managing experience.
0:22:21 > 0:22:25I expect that timescale might prove a bit tight.
0:22:27 > 0:22:28What's your budget for the work here?
0:22:28 > 0:22:34The budget is 75,000 all in, 65,000 for the builders and 10,000 for the expenses.
0:22:34 > 0:22:37How are you going to finance that?
0:22:37 > 0:22:40Greenwich council have got this regeneration scheme at the moment,
0:22:40 > 0:22:45whereby if there's a property that has been empty for more than six months, which this building has been,
0:22:45 > 0:22:48they'll pay up to 75% of the renovation costs.
0:22:48 > 0:22:51If I let it out to the council again.
0:22:51 > 0:22:55- So are you going to let it out to council tenants?- Yes, we are.
0:22:55 > 0:22:57What happens if you then decide to sell on?
0:22:57 > 0:23:01You can't sell it for five years. We have to rent it out for five years.
0:23:01 > 0:23:03But we don't, this is a long-term project for us.
0:23:03 > 0:23:10While the council will part-fund the refurbishment, the money to buy on auction day came from Anjenna.
0:23:10 > 0:23:15Mayur has certainly got the property bug, but what's her favourite aspect of property development?
0:23:15 > 0:23:17- I don't like anything about it. - Charming!
0:23:17 > 0:23:20Why are you doing this?
0:23:20 > 0:23:22Is this to support your husband?
0:23:22 > 0:23:29Yes, it's a good investment. I'm not going to get my hands dirty, but the potential is good.
0:23:29 > 0:23:33OK, she's telling you fair and square and straight here and now, she's not going to be helping.
0:23:33 > 0:23:37I'm financing the properties. All the money is coming from me.
0:23:37 > 0:23:42He's just doing all the hard work. He's working for me really.
0:23:42 > 0:23:45What's the one thing that you're worried about with this?
0:23:45 > 0:23:50Maybe I'm just a little bit naive, but at the moment I'm not worried about anything.
0:23:50 > 0:23:51You're very positive.
0:23:51 > 0:23:55Look at that big grin. Have you ever seen such a big grin on a guy?
0:23:55 > 0:23:57That's what worries me.
0:23:57 > 0:24:00- Is he always this happy?- Yes, he is.
0:24:00 > 0:24:04Very much so. It's contagious.
0:24:04 > 0:24:09- Good luck with this project. I hope you manage to finish in four months. - I hope so too. Thank you.
0:24:09 > 0:24:12- Well done. Anjenna.- Thank you. - Thank you very much.
0:24:17 > 0:24:21So Mayur and Anjenna are taking on a mammoth project with,
0:24:21 > 0:24:24not a lot of experience behind them.
0:24:24 > 0:24:26I've got doubts about their timescale.
0:24:26 > 0:24:29Just three to four months.
0:24:29 > 0:24:31Mayur is just so laid back.
0:24:31 > 0:24:37Will they make it to the foothills of the Himalayas to start the next chapter of their lives?
0:24:37 > 0:24:42I really hope so. You can find out what happens later on in the programme.
0:24:42 > 0:24:48Coming up: I unearth a plus point behind this end-of-terrace house in Nottinghamshire.
0:24:48 > 0:24:52If it's going to be a family home, it's a nice bit of space for the kids to play in.
0:24:52 > 0:24:56We return to this property in London where Anjenna hasn't just provided
0:24:56 > 0:24:59the finance, she's been busy getting everyone working.
0:24:59 > 0:25:03Yes, definitely I've been cracking the whip. It's been fun.
0:25:05 > 0:25:08But first in Southampton hindsight is a wonderful thing.
0:25:08 > 0:25:12If I hadn't had the shop attached to this building, I'd have taken one look at it and walked out again.
0:25:15 > 0:25:23Back to Southampton where early in the programme Jason paid £120,500 for this building.
0:25:23 > 0:25:28It was behind the antique shop he already owned and he planned to rent out individual rooms.
0:25:28 > 0:25:30But there were problems.
0:25:30 > 0:25:32The property suffered from damp and although it was very long,
0:25:32 > 0:25:37access to the third upstairs bedroom was through the second bedroom.
0:25:37 > 0:25:42So he plans to move the stairs and create a new corridor.
0:25:42 > 0:25:4918 months later we've returned and Jason's Antiques stock seems to have expanded.
0:25:49 > 0:25:53While at the back, the garden needs a bit of attention.
0:25:53 > 0:25:57Heading inside, the downstairs room right at the back of the property is
0:25:57 > 0:26:05now a bedroom with some character furniture that Jason has obviously found through his antiques contacts.
0:26:05 > 0:26:07There's now lovely parquet flooring too.
0:26:07 > 0:26:13The modern bathroom suite has also been replaced with period pieces and beautiful reclaimed tiles.
0:26:13 > 0:26:17Although a wall has been moved in the kitchen and it's had a makeover,
0:26:17 > 0:26:20the rest of the downstairs is still to be finished.
0:26:20 > 0:26:22So, how has the top floor fared?
0:26:22 > 0:26:26Jason took us up there on his new staircase to find out.
0:26:26 > 0:26:31This was the Victorian staircase that was originally there.
0:26:31 > 0:26:34As part of the plan that was originally for bedsits.
0:26:34 > 0:26:37I knocked all this down and put some stairs in.
0:26:37 > 0:26:45But the problem that I realised was essentially this was like going into a cell. It was extremely dingy.
0:26:45 > 0:26:48With interest rates low I realised a flat was financially possible,
0:26:48 > 0:26:52so the compromise I came up with was to knock this through and make a kitchen there,
0:26:52 > 0:26:55so there will be a butler sink by the window,
0:26:55 > 0:26:59the bedroom over there, and the bathroom there.
0:26:59 > 0:27:02The joists will have to be altered in the kitchen but that's about it.
0:27:02 > 0:27:06So in the end Jason decided to convert the property into two
0:27:06 > 0:27:10flats and let them out, rather than the three individual rooms.
0:27:10 > 0:27:14But after 18 months, progress has been a bit slow,
0:27:14 > 0:27:18although Jason seems resigned to the time it's taking.
0:27:18 > 0:27:23When I first bought the property I realised that dampness was the biggest issue here.
0:27:23 > 0:27:25The dampness went on and on and on.
0:27:25 > 0:27:31The floors had to be dug up because of rats pulling up all the plastic PVC, the dampness going everywhere.
0:27:31 > 0:27:35After a lot of back-breaking work the damp has now been cured.
0:27:35 > 0:27:38How much has all this cost?
0:27:38 > 0:27:40My initial budget was 16,000.
0:27:40 > 0:27:44I was going to do what a lot of people do, a slap of paint etc.
0:27:44 > 0:27:48It's just tipping over 60,000 and will come in about 70,000.
0:27:48 > 0:27:52Ouch! That's over four times his predicted budget.
0:27:52 > 0:27:57OK, he's had the added expense of separate meters for the two flats but this property is turning into
0:27:57 > 0:28:01a money pit and it's still not finished.
0:28:01 > 0:28:06To keep the two flats separate, one of the downstairs rooms needs to be divided.
0:28:06 > 0:28:10Jason intends to put in a Victorian French window to add character.
0:28:10 > 0:28:16Once that's done, will the upstairs flat be finished? What's left to do?
0:28:16 > 0:28:20On the first-floor flat there's a bathroom to fit.
0:28:20 > 0:28:22Some electrical work.
0:28:22 > 0:28:29We'll probably change all the doors upstairs because I don't like these fire doors, with old Victorian doors.
0:28:29 > 0:28:32Sand the floorboards, fit the kitchen.
0:28:32 > 0:28:36Although the ground floor flat is still very much work in progress,
0:28:36 > 0:28:40Jason has already let it out to a friend who runs the antiques shop.
0:28:40 > 0:28:44And he's got somebody in mind for the top-floor flat as well.
0:28:47 > 0:28:50Time to discover what two local estate agents
0:28:50 > 0:28:52think of Jason's buy-to-let.
0:28:52 > 0:28:56How much do they reckon he could rent the two flats for once finished?
0:28:56 > 0:28:59I think the conversion is looking good.
0:28:59 > 0:29:03If I was to buy the property, I'd be doing the same thing.
0:29:03 > 0:29:07The previous layout of the property was slightly unusual so it did need to be rectified.
0:29:07 > 0:29:10I think what they're doing at the moment works quite well.
0:29:10 > 0:29:14The ground floor flat conversion works very well.
0:29:14 > 0:29:16I think it's been a good investment.
0:29:16 > 0:29:20I'd have liked to have seen a finished product a lot sooner.
0:29:20 > 0:29:24I think the conversion is taking a long time.
0:29:24 > 0:29:30Jason has already let out the downstairs flat for £525 per calendar month.
0:29:30 > 0:29:33He anticipates a similar figure from his top floor tenant.
0:29:33 > 0:29:36How much would the experts suggest?
0:29:36 > 0:29:40For the rental market I would visualise the downstairs flat
0:29:40 > 0:29:44going on the market in the region of 550 per calendar month.
0:29:44 > 0:29:48With the upstairs flat, 575 - 595.
0:29:48 > 0:29:51For one-bedroom flats in this local area
0:29:51 > 0:29:55you're probably looking at around £500 per calendar month per flat.
0:29:55 > 0:30:03A touch low. I thought they had, if I wanted to go for the absolute full money, about 550 each.
0:30:03 > 0:30:07The average between the two does seem to be not a million miles away from it.
0:30:08 > 0:30:13What about a resale valuation for the two flats once they're completed?
0:30:13 > 0:30:19Jason paid £120,500 at the auction and his budget is heading towards £70,000.
0:30:19 > 0:30:25It makes a total of around £191,000.
0:30:25 > 0:30:28In terms of selling, once renovated and fully
0:30:28 > 0:30:32completed you're probably looking at around £85,000 per property.
0:30:32 > 0:30:37I could see the ground-floor property on the market for 120,000.
0:30:37 > 0:30:42The upstairs flat, I would like to think we could achieve in the region of £125,000.
0:30:42 > 0:30:44What does Jason think of that?
0:30:44 > 0:30:46There's a huge difference between the two.
0:30:46 > 0:30:50I'd have thought the ground floor one because it has the garden
0:30:50 > 0:30:54about 100,000 and this one about 85,000 - maybe 90.
0:30:54 > 0:30:56On those figures he'd just about break even.
0:30:56 > 0:30:58Would he consider selling?
0:30:58 > 0:31:05No, because I might eventually do other projects and sell them,
0:31:05 > 0:31:08but this one I'll keep because it's attached to the shop.
0:31:08 > 0:31:11Jason has definitely learnt a lot doing this project.
0:31:11 > 0:31:19Long term I reckon he can't wait to tackle a really grand old property that needs lots of work. Am I right?
0:31:19 > 0:31:22I'd love to renovate a listed building.
0:31:22 > 0:31:25They cost a lot to do up.
0:31:25 > 0:31:28With the current market, I don't think I can do that.
0:31:28 > 0:31:34I think I'm stuck doing rental properties for the foreseeable future.
0:31:34 > 0:31:37Anything wonderful is cancelled.
0:31:41 > 0:31:49Now, where can you get a three-bedroom semi-detached house for a guide price of 45,000 quid?
0:31:49 > 0:31:51Mansfield in Nottinghamshire.
0:31:51 > 0:31:56It doesn't look too brilliant from the outside but look at this.
0:31:56 > 0:32:00Amidst the mess and the chaos -
0:32:00 > 0:32:05beauty flourishes.... Let's take a look inside.
0:32:05 > 0:32:07# Sunflower
0:32:07 > 0:32:08# Good morning
0:32:08 > 0:32:13# You sure make it like a sunny day... #
0:32:13 > 0:32:17Unfortunately the house itself isn't looking so pretty.
0:32:17 > 0:32:22There are broken windows, missing roof tiles and that's just the outside.
0:32:24 > 0:32:26With a classic British summer,
0:32:26 > 0:32:31let's hope that the property is slightly more sunny.
0:32:35 > 0:32:37No! What have we got?
0:32:37 > 0:32:41We've got a loo there, a room there, I can't imagine what that is.
0:32:41 > 0:32:48It's obviously in a right old state. It smells pretty damp. That's not surprising today, I guess.
0:32:48 > 0:32:54The kitchen needs total refurbishment. It's not a bad-sized space, I have to say.
0:32:54 > 0:32:57Through to the living room, again not a bad-sized space.
0:32:57 > 0:33:01First thing I'd want to see are French doors out onto the garden.
0:33:01 > 0:33:05I'm delighted to announce it does have a feature fireplace.
0:33:06 > 0:33:09It's a very small fireplace, but it is a feature.
0:33:15 > 0:33:19Remember that small feature is matched by a small guide price of just £45,000.
0:33:19 > 0:33:23Not bad for a three-bedroomed semi.
0:33:23 > 0:33:29OK, so the downstairs needs a lot of work, but what about up there?
0:33:29 > 0:33:32Upstairs and you know what? I'm starting to really like this house.
0:33:32 > 0:33:35It changes my opinion completely. What have we got?
0:33:35 > 0:33:37Three reasonable-sized bedrooms.
0:33:37 > 0:33:40You've already got the bathroom and the loo upstairs and
0:33:40 > 0:33:44bearing in mind that guide price, you're not going far wrong, are you?
0:33:44 > 0:33:48But now time for an interesting fact.
0:33:48 > 0:33:55You may be wondering why the light fitting in the bedrooms
0:33:55 > 0:33:59is towards this end of the bedroom rather than in the middle.
0:33:59 > 0:34:05The reason is, allegedly, to maintain the modesty of the people in the room.
0:34:05 > 0:34:09If you imagine you have a net curtain up here,
0:34:09 > 0:34:14if the light fitting was here, then anything you'd be doing here would be silhouetted against the window.
0:34:14 > 0:34:18If it's there, the only place you can get a silhouette is by standing here.
0:34:18 > 0:34:23So you can be doing whatever you want here and nobody outside can see what you're up to.
0:34:23 > 0:34:26That's the reason it's there. Of course it's true. It's true...
0:34:26 > 0:34:33# I know this much is true... #
0:34:33 > 0:34:39The sad truth here is that all three bedrooms are tired and shabby and in desperate need of a wake-up call.
0:34:42 > 0:34:45The dated bathroom is looking pretty washed up too.
0:34:45 > 0:34:48Let's head outside.
0:34:48 > 0:34:52The plus point of the property is the garden. A reasonable size.
0:34:52 > 0:34:57If you're thinking about renting this place out, you probably want to put low-maintenance stuff down,
0:34:57 > 0:35:01so either shingle or some kind of a patio.
0:35:01 > 0:35:04Either way if it's a family home, it's a nice bit of space for the kids to play in.
0:35:06 > 0:35:10Now, that's a feature which makes this place extremely marketable.
0:35:10 > 0:35:15People really value outside space and there's a lot here.
0:35:15 > 0:35:17At the back it's clear there are roof issues and it may be worth
0:35:17 > 0:35:21changing the windows for double glazed ones.
0:35:21 > 0:35:24I invited a local estate agent to give me his opinion of the house
0:35:24 > 0:35:28and find out what the area offers potential buyers.
0:35:28 > 0:35:32I think Mansfield is unsung as an area because of its transport links.
0:35:32 > 0:35:35We have good access to junctions 28 and 29 of the M1.
0:35:35 > 0:35:41It does have its own train station and I think it's very well positioned in the centre of the country.
0:35:41 > 0:35:46'Sounds good so far, but what about the house itself?
0:35:46 > 0:35:49'What work is necessary?'
0:35:49 > 0:35:52The property needs new double glazing.
0:35:52 > 0:35:56I'd suggest an upgrade of the central heating system, refitting
0:35:56 > 0:36:01of kitchen and bathroom and perhaps an updating of the wiring as well.
0:36:01 > 0:36:07'With a guide price of £45,000, could buy-to-let be the best option here after renovation?'
0:36:07 > 0:36:14The local rental market is always very strong and I could see this achieving £450 per calendar month.
0:36:14 > 0:36:18'What could the resale value be?'
0:36:18 > 0:36:23This property when renovated, I'd expect to be achieving in the region of £75,000.
0:36:23 > 0:36:26It may not be in the best of areas and the house itself
0:36:26 > 0:36:32needs a bit of sorting out, but the rental in this area is strong and it's a solid little place
0:36:32 > 0:36:37that I think makes a great investment opportunity and that's what counts.
0:36:37 > 0:36:40Let's see who spotted it when it went under the hammer.
0:36:44 > 0:36:47Peel Crescent in Mansfield, 45?
0:36:47 > 0:36:49£45,000 I have.
0:36:49 > 0:36:51At 45,000, it's the opening bid.
0:36:51 > 0:36:5446 is bid.
0:36:54 > 0:36:5947, 48, 49 at the back.
0:36:59 > 0:37:0350,000, £50,000. 51?
0:37:03 > 0:37:0550 and a half.
0:37:05 > 0:37:0751? 51.
0:37:07 > 0:37:1251.500. 52,000, 52,500.
0:37:12 > 0:37:1553. 53.500.
0:37:15 > 0:37:1854, 55,000?
0:37:18 > 0:37:2154 and a half against you.
0:37:21 > 0:37:26Standing by the bar at £54,500.
0:37:26 > 0:37:2755, a fresh bidder.
0:37:27 > 0:37:32At £55,000, anyone else?
0:37:32 > 0:37:35At £55,000 once. Five.
0:37:35 > 0:37:3755,500. 56?
0:37:37 > 0:37:39No?
0:37:39 > 0:37:47At 55 and a half by the back wall, first time, second time, third and last opportunity.
0:37:47 > 0:37:49Sold at 55 and a half.
0:37:49 > 0:37:55Steve, a self-employed electrician, paid £55,500.
0:37:55 > 0:37:57He bought it without even seeing it.
0:37:57 > 0:38:01He plans to do the renovation work himself in his spare time
0:38:01 > 0:38:06with his father Mick and sister Samantha, happy to lend a hand.
0:38:06 > 0:38:09I met up with them while Steve was out on his day job.
0:38:10 > 0:38:14So, why did Steve buy it?
0:38:14 > 0:38:21Solely to renovate it all and in six months' time, hopefully, he'll pass it and sell it on,
0:38:21 > 0:38:26then he's hoping to buy a couple more terraced houses and do them up and do the same.
0:38:26 > 0:38:28Basically make some money out of it, I think.
0:38:28 > 0:38:33Ah, yes! Making money is the name of the game.
0:38:33 > 0:38:35What do they make of the job in hand?
0:38:35 > 0:38:36It needs a lot of work.
0:38:38 > 0:38:43So far! But it's got potential.
0:38:43 > 0:38:47I think he's planning to look for a family to move in,
0:38:47 > 0:38:51so there's local schools... so the area will suit families.
0:38:51 > 0:38:54- He's checked the area. Yeah.- Yeah.
0:38:54 > 0:38:56What you think of it, Mick?
0:38:56 > 0:38:58It wants a lot of work doing to it.
0:38:58 > 0:39:04There has been a lot of mining subsidence here but that was about 20 years ago and he's looked into that.
0:39:04 > 0:39:08- It's been underpinned and everything. - As far as you're concerned, what are the big jobs going to be?
0:39:08 > 0:39:11Mainly the kitchen and the bathroom.
0:39:11 > 0:39:16I think they're one of the selling points of any house, really.
0:39:16 > 0:39:18They have to put new windows in
0:39:18 > 0:39:21and tile everywhere through.
0:39:21 > 0:39:26He should do a good job. Doors, everything really. A complete refurb.
0:39:26 > 0:39:34'So, quite a lot of work to do, but Mick's son Steve has grander plans for this three-bedroomed semi.'
0:39:34 > 0:39:38- He's hoping to build an extension on to the back room somehow.- Is he?
0:39:38 > 0:39:41Yes and make a four bedroom, plus extend that.
0:39:41 > 0:39:45Has he looked into the value around here because I'm not sure that's going to stack up, is it?
0:39:45 > 0:39:49Well, he has looked at them. He's going to keep it for at least six months if not more,
0:39:49 > 0:39:53and then hopefully the market will pick up and he'll sell it.
0:39:53 > 0:39:56He's thinking about £90,000, but...
0:39:56 > 0:39:59Right, but that's going to cost quite a lot to put the extension on, isn't it?
0:39:59 > 0:40:01- He is going to do it himself anyway. - Right.
0:40:01 > 0:40:05- I'm doing the labouring. Helping. - Oh, right. OK.
0:40:05 > 0:40:08So we'll not paying any builders or anything to come and do it.
0:40:08 > 0:40:12Roughly how much do you think it'll to cost to put the extension on?
0:40:12 > 0:40:15He's worked it out at something like £4,500.
0:40:15 > 0:40:19He was only going to do a breeze block thingy then render it, I think.
0:40:19 > 0:40:23- That's what he's hoping. - We're not talking about double-storey extension here?
0:40:23 > 0:40:25Yes, hopefully to put another bedroom up there as well.
0:40:25 > 0:40:28- For £4,500?- Mmm.
0:40:29 > 0:40:35Building a two-storey extension for £4,500 seems a little unrealistic to me.
0:40:35 > 0:40:42Steve paid £55,000 at auction so what's his total budget for the refurbishment AND that extension?
0:40:45 > 0:40:48I think it's £15,000 he's got.
0:40:48 > 0:40:52He's hoping not to spend that amount but obviously that's what he's got.
0:40:52 > 0:40:56That's his limit. It will, definitely, I think take six months.
0:40:56 > 0:40:57What are you two going to get out of it?
0:40:57 > 0:41:01You're doing all this work and I know it's family and all that...
0:41:01 > 0:41:03For me it's just seeing it's all right, you know?
0:41:03 > 0:41:05And I'll be on an hourly rate.
0:41:05 > 0:41:09- Will you? Excellent! - Or a daily rate, as he said.- Really?
0:41:09 > 0:41:13Samantha could be onto a winner with that daily rate as it could take
0:41:13 > 0:41:18a very long time to remove all that wallpaper and woodchip.
0:41:18 > 0:41:21But this isn't their first dip into the world of property development.
0:41:21 > 0:41:25- I bought a bar five years ago in Tenerife.- A bar in Tenerife? Oh!
0:41:25 > 0:41:31And it needed a complete renovation, which we did, and that was quite an interesting project.
0:41:31 > 0:41:36- Both of you were there? - Yes, she went out before me and then I came out a few months later.
0:41:36 > 0:41:40- Three or four months later. - And ran a bar in Tenerife? Wow, what a thing. How was that?
0:41:40 > 0:41:42Fantastic.
0:41:42 > 0:41:44Yes, lovely. Better weather than this.
0:41:44 > 0:41:50They sailed through that development in sunnier climbs and made a great success of it.
0:41:50 > 0:41:53That bodes well for this property.
0:41:53 > 0:41:57So the renovation of this house turning into a real family affair.
0:41:57 > 0:42:01My only concern is that Steve listens to the advice and doesn't build that extension
0:42:01 > 0:42:07which would put this property above the ceiling price of similar properties in the area.
0:42:07 > 0:42:10You can find out how he gets on later in the show.
0:42:12 > 0:42:16So we've left our buyers to their own devices.
0:42:16 > 0:42:18I wonder what they've been up to?
0:42:18 > 0:42:20Let's go back and find out.
0:42:24 > 0:42:28Earlier in the programme in Plumstead, south-east London Mayur and his wife Anjenna
0:42:28 > 0:42:35paid £262,000 for this mid-terrace property that was divided into three separate flats.
0:42:35 > 0:42:37Anjenna had provided the financial investment
0:42:37 > 0:42:43and she and Mayur plan to convert it into four flats which they hope to rent out.
0:42:43 > 0:42:46They intended to use the income to provide help for a charity
0:42:46 > 0:42:51in India and were going to move there to help with the work.
0:42:51 > 0:42:54# Got to love The sweet taste of India... #
0:42:55 > 0:42:59Four and a half months later the conversion has progressed very well.
0:43:01 > 0:43:05On the ground floor, the kitchen is now a second bedroom,
0:43:05 > 0:43:09while the original lounge has become the master bedroom.
0:43:09 > 0:43:11A new bathroom has been installed.
0:43:11 > 0:43:16Up on the first floor, that one-bedroom flat has also gained a second bedroom
0:43:16 > 0:43:20and the lounge has been transformed into a main bedroom.
0:43:20 > 0:43:24What became of the original bedroom?
0:43:24 > 0:43:26When we first came, this used to be a bedroom.
0:43:26 > 0:43:31What we did here was the kitchen used to be in that other room there which is now the second bedroom.
0:43:31 > 0:43:35We turned this into a kitchen-diner/lounge-area and the space works out great.
0:43:35 > 0:43:39You've got a kitchen here and you've got your living space here.
0:43:39 > 0:43:41I'm really pleased with the way this has worked out.
0:43:44 > 0:43:47There's been the same layout change on the second floor
0:43:47 > 0:43:51where originally the third flat had continued up into the roof space.
0:43:51 > 0:43:54Mayur and Anjenna are now waiting for planning permission
0:43:54 > 0:43:57to convert the attic into a fourth one-bedroom flat.
0:43:57 > 0:44:04That would take the property from three flats with five bedrooms to four flats with seven bedrooms.
0:44:04 > 0:44:08Anjenna's particularly pleased with the ground-floor conversion.
0:44:08 > 0:44:14This was the bedroom before and it was quite dark so what we decided to do was open up the, there was a
0:44:14 > 0:44:19window here, so we opened up the wall and created an extension and turned this into the kitchen.
0:44:19 > 0:44:21Now what we've got is a kitchen/lounge.
0:44:21 > 0:44:26I really like this space. This is my favourite room in the whole house.
0:44:28 > 0:44:33Now the ground floor flat opens out into its own patio.
0:44:33 > 0:44:38All the flats will share the garden and decking area, once completed.
0:44:38 > 0:44:43Of course, if the fourth flat does get the go-ahead, rental income on the property will increase.
0:44:43 > 0:44:47That's something Anjenna would like as she's looking after the money!
0:44:47 > 0:44:50But who's been responsible for all the work here?
0:44:50 > 0:44:53I've got a fantastic set of builders. Sonny and Sabby.
0:44:53 > 0:44:56They've worked hard. They've also worked long hours as well.
0:44:56 > 0:44:59Till about 9 o'clock at night. They've been great.
0:44:59 > 0:45:03With the changes to the layout, new doors have been put into some of the flats
0:45:03 > 0:45:07and extensive soundproofing was needed, as well.
0:45:07 > 0:45:11Remember, they paid £262,000 at auction for the property.
0:45:11 > 0:45:13How much has the refurbishment cost?
0:45:13 > 0:45:19We've ended up spending altogether about £85,000, which is still not too bad.
0:45:19 > 0:45:23It's still 10,000 more than we budgeted. Not that bad. That includes all the fees as well.
0:45:23 > 0:45:27I'm very pleased with how my money's been spent.
0:45:27 > 0:45:31Considering what we bought the property for and the work we've done. I'm very pleased.
0:45:31 > 0:45:34The council had agreed to pay me either 50% or 75% of the cost of
0:45:34 > 0:45:40certain things like double glazing the kitchens, the bathroom.
0:45:40 > 0:45:43That's now going to be 50%, as I'm not going to let it out
0:45:43 > 0:45:46to council tenants, I'm going to let it out to private tenants.
0:45:46 > 0:45:49That does mean that Mayur will have to find tenants himself.
0:45:49 > 0:45:52Remember, he and Anjenna plan to move to India to give
0:45:52 > 0:45:56their time and effort to support a charity helping local villages.
0:45:59 > 0:46:02Time to see what two local property experts think of this conversion
0:46:02 > 0:46:06and their chances of letting out the flats.
0:46:06 > 0:46:10The standard of finish in the flat so far
0:46:10 > 0:46:12is of a fairly good standard.
0:46:12 > 0:46:16The properties are all double-glazed and centrally heated.
0:46:16 > 0:46:17The walls have been plastered.
0:46:17 > 0:46:20Everywhere has been rewired and re-plumbed.
0:46:20 > 0:46:23I think the way he's created the four flats is a good thing
0:46:23 > 0:46:26because he's now got properties he can either sell or rent.
0:46:26 > 0:46:29He's created the top floor one-bedroomed flat, which is a small
0:46:29 > 0:46:33flat, but he's going to get a decent income for either sale or rental.
0:46:33 > 0:46:37I believe the space here has been maximised to its full potential.
0:46:37 > 0:46:43Getting four flats from this property was the right thing for the current owner to do.
0:46:43 > 0:46:45I don't like open-plan lounges and kitchens
0:46:45 > 0:46:48but a lot of builders do that these days to maximise the space.
0:46:48 > 0:46:51So, from a business perspective, he's done the right thing.
0:46:51 > 0:46:55Assuming the fourth flat does get the necessary planning consent,
0:46:55 > 0:46:59how much could the flats be worth once the work's completed?
0:46:59 > 0:47:03Remember, they paid £262,000 at auction and Anjenna has managed
0:47:03 > 0:47:10to keep the budget to £85,000 making a total of £347,000.
0:47:10 > 0:47:16I believe the ground-floor flat is worth in the region of £155,000 - £160,000.
0:47:16 > 0:47:21The first-floor flat at £155,000
0:47:21 > 0:47:25and the same price for the second-floor flat.
0:47:25 > 0:47:31And the small one-bed on the top floor at £115,000.
0:47:31 > 0:47:37The ground-floor flat I believe to be worth £155,000 - £160,000.
0:47:37 > 0:47:42The first-floor and second-floor flat, we're looking at about £150,000.
0:47:42 > 0:47:47And the top-floor flat, between £115,000- £125,000.
0:47:47 > 0:47:49They're good retail figures.
0:47:49 > 0:47:55That makes the whole building worth £575,000 - £600,000. That's good.
0:47:55 > 0:48:01Yes, very good! That valuation of £575,000 would represent
0:48:01 > 0:48:09a pre-tax profit of about £228,000 over their total outlay of £347,000.
0:48:09 > 0:48:15But don't forget, once the flats are rented out, the council will pay 50% of some of the costs.
0:48:15 > 0:48:22Mayur's expecting about £10,000 for that, so the profit will be even more before the usual deductions.
0:48:22 > 0:48:24Are they tempted to sell?
0:48:24 > 0:48:26At the moment, I don't think so.
0:48:26 > 0:48:31I'd rather wait for about three or four years until the prices pick up and then sell them.
0:48:31 > 0:48:34How much could the flats generate in rent?
0:48:34 > 0:48:40For the ground-floor flat for rental, £800-£825 per calendar month.
0:48:40 > 0:48:48For the first floor flat, £775-£800 and the same price for the second floor flat.
0:48:48 > 0:48:55The rental values of the properties are, for the ground floor flat, we can achieve £825 per calendar month.
0:48:55 > 0:49:00The first floor and second floor flat, we would be looking to achieve £800 per calendar month.
0:49:00 > 0:49:04Good. Good. That's the same figure that we had in mind.
0:49:04 > 0:49:06Between £800 and £825 for the ground floor flat.
0:49:06 > 0:49:08And the fourth flat?
0:49:08 > 0:49:14For the top floor I would value this property at £625 per calendar month.
0:49:14 > 0:49:18The top-floor flat, we would be looking to achieve £650 per calendar month.
0:49:18 > 0:49:20We had a figure of 625, so yes.
0:49:20 > 0:49:22We are very pleased about that as well, yes.
0:49:22 > 0:49:28As soon as the property's rented out, Mayur and Anjenna will head off to India for eight months
0:49:28 > 0:49:32to help the charity provide sanitation and water facilities for 51 villages.
0:49:32 > 0:49:34So they'll be working together again.
0:49:34 > 0:49:36Do they make a good team?
0:49:36 > 0:49:40I think we do. We make a very good team.
0:49:40 > 0:49:43She orders, I obey. A fantastic team. It can't go wrong.
0:49:43 > 0:49:45The way it should be.
0:49:51 > 0:49:54We're back in Mansfield in Nottinghamshire.
0:49:54 > 0:50:00Steve had bought this three-bedroomed house in need of modernisation for £55,500.
0:50:00 > 0:50:03He hadn't even seen it beforehand.
0:50:03 > 0:50:07A self-employed electrician, he planned to renovate it himself
0:50:07 > 0:50:11in his spare time with the help of his dad Mick and sister Samantha.
0:50:11 > 0:50:16A family project, then. But what were they getting out of it?
0:50:16 > 0:50:18For me it's just to see that they're all right.
0:50:18 > 0:50:20I'll be on an hourly rate.
0:50:20 > 0:50:22Will you? Excellent.
0:50:22 > 0:50:24- Or a daily rate, as I said. - Oh, really?
0:50:28 > 0:50:32With Steve busy at work, he's left it to Dad and sister
0:50:32 > 0:50:35to show us how the house is looking now, seven months later.
0:50:36 > 0:50:41Ah, it seems to have taken a step or ten backwards.
0:50:41 > 0:50:45This potential nest egg has turned into an empty shell.
0:50:45 > 0:50:50The current state of the property is reflected in Mick and Samantha's headgear.
0:50:50 > 0:50:52I've been involved quite a lot
0:50:52 > 0:50:55because with Steve having to work as well
0:50:55 > 0:50:57it's very hard to find the time to pull it in.
0:50:57 > 0:50:59I've been doing a bit here and a bit there.
0:50:59 > 0:51:05The kitchen was in a bit of a sorry state before, so how did they get on with that?
0:51:05 > 0:51:08Ah, not great.
0:51:09 > 0:51:13As you can see, this used to be the kitchen. It was in a mess,
0:51:13 > 0:51:16but we've stripped the kitchen all out.
0:51:16 > 0:51:23We're going to brick this window up here and take the window out and put a new window in.
0:51:23 > 0:51:25That'll make it a bit more private.
0:51:25 > 0:51:29The units are all lined out to go all around the room.
0:51:29 > 0:51:33It's a nice square room, so it's a good place to put them in.
0:51:33 > 0:51:35This wall is a bit different.
0:51:35 > 0:51:40It was a horrible brown sort of wallpaper, which took a lot of getting off really.
0:51:40 > 0:51:42We've took the boiler out.
0:51:42 > 0:51:46We've got a new gas boiler already bought but not installed yet.
0:51:46 > 0:51:49You know that saying - when you start one job, you create another?
0:51:49 > 0:51:52This house is living proof of that.
0:51:52 > 0:51:57Stripping the wallpaper off uncovered a damp patch, which then revealed a leaking roof.
0:51:57 > 0:52:00That had caused some of the timber joists in the loft to rot.
0:52:00 > 0:52:04This meant ripping down the ceiling upstairs and the easiest way
0:52:04 > 0:52:08of getting at that ceiling was to remove the internal walls.
0:52:08 > 0:52:11Soon you could sit in the bath and look up at the roof,
0:52:11 > 0:52:13or you could have if the bath had still been there.
0:52:13 > 0:52:16Will they put all those internal walls back?
0:52:16 > 0:52:20We'll put them back in, making it a three-bedroomed house.
0:52:20 > 0:52:25Where this wall was, it'll go back to there, which will make this room a lot bigger.
0:52:25 > 0:52:30It'll make the boxroom a bit smaller, but big enough to get a bed in and a wardrobe, etc.
0:52:30 > 0:52:33At the moment, the three upstairs bedrooms look more like
0:52:33 > 0:52:39one large, open-plan bedroom with a splendid view up to the rafters.
0:52:39 > 0:52:42But the water problems didn't stop there.
0:52:42 > 0:52:45You could hear water leaking in the toilet,
0:52:45 > 0:52:46we couldn't find where it was,
0:52:46 > 0:52:50so we had to dig the concrete floor up and then we find a pipe
0:52:50 > 0:52:53that had been broken off the tap and it was leaking there.
0:52:53 > 0:52:58It had probably been leaking for possibly five years or more.
0:52:58 > 0:53:03We had to trace it back and dig a hole in the garden and we found it,
0:53:03 > 0:53:07but nicked the lead pipe and it caused water to spurt up.
0:53:07 > 0:53:09What a nightmare!
0:53:09 > 0:53:14The unplanned fountain in the garden meant the next-door-but-one neighbour's water supply
0:53:14 > 0:53:18was switched off and the water board called in to do the repairs.
0:53:18 > 0:53:22It's taken seven months to get this far, so how long now?
0:53:22 > 0:53:26Hopefully six to seven months, I'd think.
0:53:26 > 0:53:31The biggest problem is the roof. As you can see, it's going to be a major job to get that done.
0:53:31 > 0:53:33That's one of the things, when we bought it,
0:53:33 > 0:53:36we didn't realise there was a lot of water coming in.
0:53:36 > 0:53:40That's one of the problems of not looking at the property before you buy it.
0:53:40 > 0:53:45Buying properties unseen can be risky, not to mention expensive.
0:53:45 > 0:53:48They originally had a budget of £12,000 to £15,000,
0:53:48 > 0:53:50including the cost of an extension.
0:53:50 > 0:53:52Have these problems blown a hole in that?
0:53:52 > 0:53:54We thought it would be £12,000.
0:53:54 > 0:53:59That was the budget we allowed for. But I'm thinking now possibly 15.
0:53:59 > 0:54:04Hopefully it'll be under that. Because we're doing a lot of the work ourselves,
0:54:04 > 0:54:05it should keep it down a lot.
0:54:05 > 0:54:12Mick's son Stephen bought the property at auction for £55,500.
0:54:12 > 0:54:17With the help of his dad and sister it's slowly being refurbished.
0:54:17 > 0:54:21We asked two local estate agents to have a look around.
0:54:22 > 0:54:26I'm very surprised with the extent of the modernisation on this one.
0:54:26 > 0:54:28I did look at it in the summer of 2009
0:54:28 > 0:54:32and I knew it was going to be a big project, but even I'm surprised
0:54:32 > 0:54:36just how much work has been done and still has to be done to it.
0:54:36 > 0:54:37It's a work in progress.
0:54:37 > 0:54:40It needs a lot doing to it still.
0:54:40 > 0:54:43The upstairs has been completely opened up
0:54:43 > 0:54:47and needs to be re-closed and put into bedrooms again.
0:54:49 > 0:54:55But if Steve and his family want to wave goodbye to this problem property right now,
0:54:55 > 0:54:58would they recoup their £67,000 investment?
0:54:58 > 0:55:02If this property were to be sold in its current state,
0:55:02 > 0:55:06unfortunately I think the owner may have lost rather than made money on it.
0:55:06 > 0:55:11For auction purposes we'd be looking at a guide price of £45,000 to £50,000.
0:55:11 > 0:55:15Without an upstairs bathroom, the property isn't mortgageable.
0:55:15 > 0:55:17And without a kitchen as well.
0:55:17 > 0:55:21Therefore, I'd have thought that we're looking at about £50,000.
0:55:21 > 0:55:25- That's not bad.- That's quite good, that.
0:55:25 > 0:55:30A positive mental attitude. Vital to success in property developing.
0:55:30 > 0:55:33But how much could it be worth after they've completed the renovation?
0:55:33 > 0:55:37Once renovated, I can see this property achieving in the region
0:55:37 > 0:55:43of £85,000, perhaps suggesting an initial asking price of £89,950.
0:55:43 > 0:55:47Once brought up to scratch, the property would go on the market at around £80,000.
0:55:47 > 0:55:53We thought on the lines of 84, so it's in between there really.
0:55:53 > 0:55:58- It's quite good, really. - Yeah.- We'd be happy at that.
0:55:58 > 0:56:01If they stick to their budget, that could mean a pre-tax profit of
0:56:01 > 0:56:07between £12,500 and £17,500, minus the usual deductions.
0:56:07 > 0:56:09What about the rental market?
0:56:09 > 0:56:11For rental purposes I can see the property
0:56:11 > 0:56:17achieving £450 per calendar month, or perhaps even £475 per calendar month
0:56:17 > 0:56:20if the modernisation is to a high standard.
0:56:20 > 0:56:24For rental, I'd expect them to receive £425 per calendar month.
0:56:24 > 0:56:29- Quite reasonable.- I think that's quite good for this type of property.
0:56:29 > 0:56:34So, what are Steve's plans for this house?
0:56:34 > 0:56:39Stephen is hoping to live in it for a while, then he'll probably look for a another project.
0:56:39 > 0:56:42This place could look amazing by the time they have all finished
0:56:42 > 0:56:45and I'm sure Steve's hard work here will reap rewards.
0:56:48 > 0:56:52I hope the bargain hunter in you has picked up a few tips on today's show.
0:56:52 > 0:56:55And maybe next time it'll be you buying your home under the hammer.
0:56:55 > 0:56:58- Looking forward to seeing you then. - Goodbye.- Goodbye.
0:57:05 > 0:57:08Subtitles by Red Bee Media Ltd