0:00:02 > 0:00:04Buying at auction can be very simple and effective
0:00:04 > 0:00:06and we're here to help demystify the process.
0:00:06 > 0:00:10Yes, because when the hammer comes down, that could be just the beginning.
0:00:10 > 0:00:13You've then got to get the property habitable.
0:00:13 > 0:00:16So let's see what our brave bidders took on on today's show.
0:00:42 > 0:00:47Bidding at auction may seem an odd way of buying something as important as property.
0:00:47 > 0:00:52- But lots of people do it. - Yes, it's quick and it's easy, so maybe it's for you.
0:00:52 > 0:00:57So stay with us as we follow three properties that did sell under the hammer.
0:00:59 > 0:01:04In Stoke-on-Trent, have I discovered a flat above the perfect commercial unit?
0:01:04 > 0:01:07It's exactly what you would want it to be.
0:01:07 > 0:01:12When we first saw this London cottage, converting the cellar was taking some time.
0:01:12 > 0:01:17Now, four-and-a-half years later, you'll see the finished result.
0:01:17 > 0:01:24And this three-bed house in Lincoln had a very odd layout which needed changing, one way or another.
0:01:24 > 0:01:28You've got to do something, because as it stands, it's all a bit strange.
0:01:28 > 0:01:32All of these properties went to auction and right now, we'll find out
0:01:32 > 0:01:37- who bought them and what they paid when they went under the hammer. - You've bought it, son.
0:01:42 > 0:01:46I'm in Longton in the southern district of Stoke-on-Trent,
0:01:46 > 0:01:51known to the locals as the Neck End of the city.
0:01:51 > 0:01:57It's one of the six pottery towns that makes up the city of Stoke-on-Trent.
0:01:57 > 0:02:01A lot of evidence of the history around here remains, with the
0:02:01 > 0:02:05striking silhouettes of chimneys still dominating the skyline.
0:02:05 > 0:02:07Well, it's certainly a windy day here, but the
0:02:07 > 0:02:11property I'm here to see shouldn't put the wind up any investor.
0:02:11 > 0:02:16£15,000 was the guide price for this, a commercial unit
0:02:16 > 0:02:19with living space above it. Let's take a look inside.
0:02:19 > 0:02:21So what do you get for that kind of money?
0:02:21 > 0:02:25You're going to be surprised, because actually you get quite a lot.
0:02:25 > 0:02:29This is the commercial unit and it's exactly what you would want it to be.
0:02:29 > 0:02:32Basically, it's just a big long rectangle. Perfect.
0:02:32 > 0:02:38It means flexibility for whoever took this on, you know, shelving, whatever. Great use of space.
0:02:38 > 0:02:44It's a good size as well, stairs there down into a basement, and stairs there to even more property.
0:02:44 > 0:02:50'So, for that guide price of just £15,000, what was on offer on the first floor?'
0:02:50 > 0:02:52So, up here at the front, a good-sized room,
0:02:52 > 0:02:56and at the rear of the property, yet another good-sized room.
0:02:56 > 0:02:59It looks to me at the moment like this wasn't used as living
0:02:59 > 0:03:03accommodation, more sort of extra storage for the unit downstairs.
0:03:03 > 0:03:06There's a kitchenette there, but good news, there is a loo there.
0:03:06 > 0:03:08And I reckon by playing around with this,
0:03:08 > 0:03:13you could create a really nice flat so you end up with a work-live unit.
0:03:13 > 0:03:18And one extra thing I've just noticed, I reckon you could even go up into the loft.
0:03:18 > 0:03:25'There's more space than you'd think with this lot, although it was guided at just 15 grand.
0:03:25 > 0:03:28'If the downstairs is to be kept as a commercial unit, time and money
0:03:28 > 0:03:33'will need to be spent to bring it up to scratch with current working condition regulations.
0:03:34 > 0:03:37'There's also a basement
0:03:37 > 0:03:39'which runs the whole length of the property,
0:03:39 > 0:03:43'making it ideal storage space for a business or a shop.
0:03:43 > 0:03:47'But there's clear evidence down here of work that would be necessary on the whole building.
0:03:47 > 0:03:50'Both the electrics and heating will need replacing.
0:03:53 > 0:03:56'From the front, it looks like the roof will need to be redone as well
0:03:56 > 0:04:02'and although the back of the property has already been patched up, some scary gaps remain.
0:04:05 > 0:04:08'I invited a local estate agent to come and tell me
0:04:08 > 0:04:10'more about the area.'
0:04:11 > 0:04:14The property prices in this area are quite low
0:04:14 > 0:04:16compared to other parts of Stoke-on-Trent.
0:04:16 > 0:04:20The reason that they are lower is that it is mixed in with a lot of
0:04:20 > 0:04:23industrial property, and some of it has fallen into decline.
0:04:23 > 0:04:28The good point of this area is that a lot of money is being spent on investment.
0:04:28 > 0:04:31The bad point is it's taking a lot of time to come through.
0:04:31 > 0:04:34'Well that could explain the guide price.
0:04:34 > 0:04:36'But it's good to hear about the regeneration plans,
0:04:36 > 0:04:41'so it's looking like this could be a solid long-term investment.'
0:04:41 > 0:04:46What I like about this particular property is that somebody can stamp on it their own individual mark.
0:04:46 > 0:04:50However, it is going to require quite a lot of refurbishment works.
0:04:50 > 0:04:53A lot of it is hidden behind the panelling on the walls.
0:04:53 > 0:04:59'Yes, it will take some effort but it would be great to see another building restored and taken care of.
0:04:59 > 0:05:03'So, once all the necessary work has been done and the building brought
0:05:03 > 0:05:07'back up to scratch, how much could it then be worth on the market?'
0:05:07 > 0:05:10Once fully renovated, I would expect this particular property
0:05:10 > 0:05:14to fetch in the region of £55,000 to £60,000 on the open market.
0:05:14 > 0:05:19'That's a good price, even once you factor in the renovation costs.
0:05:19 > 0:05:25'But what does this local expert think would be the best move for whoever bought this property?'
0:05:25 > 0:05:29The best option for this property would be for an investor to buy it, to carry out the renovation works
0:05:29 > 0:05:33and then to find a shopkeeper that is looking at starting up a business
0:05:33 > 0:05:36and wants living accommodation above.
0:05:36 > 0:05:43We would anticipate a rental value of somewhere in the region of £4,000 per annum for the whole unit.
0:05:43 > 0:05:46'There are lots of issues inside.
0:05:46 > 0:05:50'This could turn into a horror story, because round the back, the benefit
0:05:50 > 0:05:54'of car parking could well be offset by the state of the property.
0:05:56 > 0:05:59'But just remember that guide price.'
0:05:59 > 0:06:02Now, I know property prices are a bit depressed at the moment,
0:06:02 > 0:06:06but honestly, talk about value for money.
0:06:06 > 0:06:09This place, at a guide price of 15,000 quid?
0:06:09 > 0:06:14Come on, it's a no-brainer. Let's see who went for it at the auction.
0:06:16 > 0:06:21Lot 22, a two-storey retail property.
0:06:21 > 0:06:24Clear reserve. If you bid me 15, you can have it for 15,
0:06:24 > 0:06:27unless somebody else bids higher.
0:06:27 > 0:06:2815, can I say?
0:06:28 > 0:06:30Back row, seated. Thank you, sir.
0:06:30 > 0:06:32£15,000 on the back row.
0:06:32 > 0:06:3416, can I say anywhere else?
0:06:34 > 0:06:38Otherwise, I'm selling it at 15.
0:06:38 > 0:06:40Are we all done?
0:06:40 > 0:06:43I might even take a half if it helps.
0:06:43 > 0:06:4615.5, 16.
0:06:46 > 0:06:50And a half? 16.5, 17.
0:06:50 > 0:06:5217.5?
0:06:52 > 0:06:5417.5, 18. Shaking his head.
0:06:54 > 0:06:56Still with you on the back row, sir.
0:06:56 > 0:07:01£18,000. Another half anywhere else?
0:07:01 > 0:07:04At £18,000 then, are we all done?
0:07:04 > 0:07:07Back in, 18.5.
0:07:07 > 0:07:1019, sir? 19.
0:07:10 > 0:07:15No? Shaking his head again. Still with you on the back row at 19,000.
0:07:15 > 0:07:20First time at £19,000, second time...
0:07:20 > 0:07:22Third and final time.
0:07:22 > 0:07:24At £19,000, I'm selling it.
0:07:24 > 0:07:27You've bought it, sir, well done.
0:07:27 > 0:07:34'That successful bidder who paid just £4,000 above the guide price was local lettings agent Abraham.
0:07:34 > 0:07:37'He's from Stoke-on-Trent and knows the area well.
0:07:37 > 0:07:41'I caught up with him back at the shop to talk business.'
0:07:41 > 0:07:43- Abraham, good to meet you. - Hi, Martin, nice meeting you.
0:07:43 > 0:07:47- Congratulations.- Thank you. - Why did you want to buy this place? - It was the right price.
0:07:47 > 0:07:52- Right, is that it? - Yes, that's about it basically. - How did the auction go?
0:07:52 > 0:07:56Well, I didn't really go to the auction thinking I'm going to be buying this place.
0:07:56 > 0:08:00I hadn't seen the inside prior to today, only half an hour ago.
0:08:00 > 0:08:03The auction went OK, yeah.
0:08:03 > 0:08:06- I bought next door as well. - What?- I bought next door as well.
0:08:06 > 0:08:09- I got them both at a reasonable price.- How much did you pay for next door?
0:08:09 > 0:08:11- 15,000.- Oh, wow.
0:08:11 > 0:08:16I was a bit cautious when I bought them because I'd not seen the inside, but yeah, I'm satisfied.
0:08:16 > 0:08:17It seems to be OK.
0:08:17 > 0:08:20'Blimey, buying blind is not something I'd recommend.
0:08:20 > 0:08:26'But Abraham did it twice, as he bought this one for £19,000
0:08:26 > 0:08:29'and next door for £15,000.
0:08:31 > 0:08:36'So, for £34,000, he got two properties, but certainly from
0:08:36 > 0:08:40'the back, these terrible twins don't look too great to me.
0:08:40 > 0:08:42'I reckon Abraham's taken a chance.
0:08:42 > 0:08:45'Mind you, he has got lots of experience.'
0:08:45 > 0:08:49- I've been in the business since I was 18.- The property business?
0:08:49 > 0:08:51Yeah. I run two estate agents, letting agencies here.
0:08:51 > 0:08:56We do a lot of business in Stoke-on-Trent, Manchester, Blackpool, North Wales.
0:08:56 > 0:08:58And how many properties do you have in your portfolio?
0:08:58 > 0:09:00Touching about 34, 35.
0:09:00 > 0:09:02Oh, great, fantastic.
0:09:02 > 0:09:03And those are all rented out?
0:09:03 > 0:09:05They're all rented out, yes.
0:09:05 > 0:09:08So why did you go for this one other than just the price?
0:09:08 > 0:09:10The rental return.
0:09:10 > 0:09:14Longton's going through a regeneration, so it'll eventually come back, hopefully.
0:09:14 > 0:09:17There's always going to be a demand for small shopkeepers
0:09:17 > 0:09:21and people that want to live around here, hence the flats upstairs.
0:09:21 > 0:09:23You've go this unit down here but you've also got the flat.
0:09:23 > 0:09:26- That's right, yes. - So what are you going to do?
0:09:26 > 0:09:29Are you going to view these as two individual properties and sort them out like that?
0:09:29 > 0:09:33Definitely. They'll remain as they are, as two different units.
0:09:33 > 0:09:38We'll renovate them, bring them up to current regulations, health and safety and so forth.
0:09:38 > 0:09:40And basically, look for an ideal tenant.
0:09:40 > 0:09:43So what's the plan for the property? What are you going to do with it?
0:09:43 > 0:09:48Basically, the electrics, from what I can see, wouldn't be right at the moment.
0:09:48 > 0:09:54So obviously, you'd have electric put in to current regulations, get the gas sorted out, renovate
0:09:54 > 0:09:57upstairs, it needs a kitchen and bathroom, all the walls
0:09:57 > 0:10:04- need skimming, plastering, see if the floor's right, and that's it, basically.- But to keep it as what?
0:10:04 > 0:10:06As a unit, the way it is, yes.
0:10:06 > 0:10:09- With the view that upstairs is used as what?- Probably leased out to the
0:10:09 > 0:10:14same person, upstairs and downstairs, this unit, to the same person, and the same next door.
0:10:14 > 0:10:18- And what kind of returns do you think you might get? - I don't know. For this unit,
0:10:18 > 0:10:21the whole unit, we're looking at between 500 and 700 a month.
0:10:21 > 0:10:24For next door, probably 450 to 500.
0:10:24 > 0:10:27So let's assume 500 a month, that 6,000 a year.
0:10:27 > 0:10:31- You've paid £19,000 for it! - It's not a bad buy.
0:10:31 > 0:10:34'That would be a very healthy return on
0:10:34 > 0:10:39'his investment, and an opportunity for more regeneration in the area.
0:10:39 > 0:10:43'But there are renovation expenses on top of the £34,000 he paid at auction.
0:10:43 > 0:10:47'It sounds like Abraham likes to do things properly,
0:10:47 > 0:10:50'so how much will it cost to get these properties up to scratch?'
0:10:50 > 0:10:51It's not as bad as I thought.
0:10:51 > 0:10:55On the outside, the properties look a lot worse than on the inside.
0:10:55 > 0:10:58But I think on both units we should get away with about 25,000, 30,000.
0:10:58 > 0:11:00So you're pumping quite a lot of money in.
0:11:00 > 0:11:03Oh yeah, it's going to take a lot of money to get them up to scratch.
0:11:03 > 0:11:06Sounds like a lot. What are you going to do for 25 grand?
0:11:06 > 0:11:10You've got your windows to sort out, kitchens and bathrooms to install,
0:11:10 > 0:11:13electrical installation, you've got your gas,
0:11:13 > 0:11:16- your walls to sort out, and it adds up.- Right.
0:11:16 > 0:11:19And the roof, the roof's quite bad. So it needs a new roof.
0:11:19 > 0:11:22Who's going to do the work? Are you going to get involved?
0:11:22 > 0:11:25- No, no. Eh, no.- No, no, no!
0:11:25 > 0:11:27That's definitely no!
0:11:27 > 0:11:30I've got a team of lads to do the work, basically.
0:11:30 > 0:11:32Sometimes we sub-contract the work out.
0:11:32 > 0:11:36- So we've got people out there who'll do the work. - What kind of timescale is there?
0:11:36 > 0:11:40If it goes our way, eight weeks, you know, may go into ten.
0:11:40 > 0:11:42I think eight weeks should be about right.
0:11:42 > 0:11:46- Do you have to apply for any planning?- We checked with the solicitor.
0:11:46 > 0:11:49There's residential use upstairs, which is going to stay the same.
0:11:49 > 0:11:52Both units downstairs are commercial, so there shouldn't be an issue there.
0:11:52 > 0:11:56Seeing it today for the first time, it's a pleasant surprise.
0:11:56 > 0:12:00It's not as bad as I thought it would be. Fingers crossed it should be OK.
0:12:00 > 0:12:02Good luck with it all, and lovely to meet you.
0:12:02 > 0:12:04Cheers, Martin, thanks a lot.
0:12:04 > 0:12:06'It might only have been £34,000, but there is just
0:12:06 > 0:12:13'a little bit of work required on these two properties, inside and out, front and back.'
0:12:13 > 0:12:18Well, it's almost as if Abraham has got two properties for the price of one.
0:12:18 > 0:12:22He's certainly got the experience to make this project a success and sort
0:12:22 > 0:12:25out the rentals once he's done them up.
0:12:25 > 0:12:29But that budget seems really high to me, so I wonder what we'll get for our money.
0:12:29 > 0:12:32You can find out later in the show.
0:12:34 > 0:12:39'We're now going back to a property we first showed you in August 2005.
0:12:39 > 0:12:42'Here in Greenwich, from this spectacular vantage point,
0:12:42 > 0:12:46'the sights of London are laid before you.'
0:12:48 > 0:12:53This area of South London is so popular with tourists, and you can see why.
0:12:53 > 0:12:56You've got the Cutty Sark, the Royal Observatory, the Royal Naval College,
0:12:56 > 0:13:01and all within walking distance of the beautiful Greenwich Park.
0:13:01 > 0:13:04'For locals, the Royal Park had always been an attraction.
0:13:04 > 0:13:10'In 2005, the area was already very much in demand for workers at Canary Wharf.
0:13:10 > 0:13:14'Although the dome was yet to become a destination arena, there was no
0:13:14 > 0:13:20'shortage of investors looking to renovate properties in Greenwich, an area steeped in history.'
0:13:20 > 0:13:25With some of these houses in this street dating back to 1850, there's certainly going to
0:13:25 > 0:13:30be some interesting history behind these net curtains, and in such a fantastic area.
0:13:30 > 0:13:33I'm interested already. So what have we got here, then?
0:13:33 > 0:13:40Well, there's two reception rooms, two bedrooms, and it's got a guide price of £270,000.
0:13:40 > 0:13:46'The outside of this little cottage looks really inviting, with its picket fence and sash windows.
0:13:46 > 0:13:49'But will it tempt the investors inside?
0:13:52 > 0:13:55'On the ground floor, the front living room has a lovely old
0:13:55 > 0:13:59'fireplace, which will certainly attract the restoration fans.
0:13:59 > 0:14:03'Along the corridor is the kitchen, which is going to need ripping out,
0:14:03 > 0:14:08'but it's a good size and that door in the corner leads to a very interesting find.
0:14:08 > 0:14:12'There's a cellar. But I just hope any investor is prepared to factor
0:14:12 > 0:14:17'in some money for damp, the usual problem with cellars.
0:14:17 > 0:14:20'And off the kitchen, right at the back of the property,
0:14:20 > 0:14:23'is the bathroom, and that's a case of start again, I'm afraid.
0:14:27 > 0:14:32'Upstairs, are two bedrooms, both a good size, and I can't wait to have
0:14:32 > 0:14:35'a look behind that boarded-up fireplace in the rear bedroom.
0:14:35 > 0:14:38'If it's hiding anything like the one in the front bedroom,
0:14:38 > 0:14:44'you could be on to a really good selection of fireplaces here, all worth restoration work.
0:14:46 > 0:14:51'At the back of the property is a lovely and secluded walled garden,
0:14:51 > 0:14:57'and perfectly situated right next door is the local pub, which is where I headed to
0:14:57 > 0:15:03'find out a bit more about the history of this London cottage with its decidedly country feel.'
0:15:03 > 0:15:06Greenwich is one of the few places
0:15:06 > 0:15:09in which there is a village atmosphere.
0:15:09 > 0:15:13We're so close to the centre here, and people do know each other around the place,
0:15:13 > 0:15:16and it is a true village.
0:15:16 > 0:15:23'These days, this area appeals to new faces from the city, but the locals have appreciated it for years.'
0:15:25 > 0:15:28The house next door was occupied by a little lady called Lilian,
0:15:28 > 0:15:30and she'd been there for 50 years.
0:15:30 > 0:15:32And she's very sorely missed.
0:15:32 > 0:15:39'So is David hoping the new neighbours will be as keen to sample his hospitality?'
0:15:39 > 0:15:43I do hope so! Mind you, they could burrow underneath in the cellar, couldn't they?
0:15:43 > 0:15:47That could be a retrograde step, but we hope so, yes.
0:15:49 > 0:15:56Yes, this house needs redecorating and a possible extension or two, but with the average house in this
0:15:56 > 0:16:03street selling at over £360,000, I think somebody could be getting a bargain with this.
0:16:03 > 0:16:09'And the property went to auction with a guide price of 270,000.'
0:16:09 > 0:16:11Down to Greenwich now,
0:16:11 > 0:16:13nice-looking house.
0:16:13 > 0:16:17I like this street, an established character street.
0:16:17 > 0:16:20How much? 200? OK, you want to get in.
0:16:20 > 0:16:25£200,000. 205, anywhere?
0:16:25 > 0:16:27205, back of the room.
0:16:27 > 0:16:32210, 215, 220.
0:16:32 > 0:16:37225, 230, 235.
0:16:37 > 0:16:40235, 240?
0:16:40 > 0:16:44240, 245?
0:16:44 > 0:16:49250. 250, 255.
0:16:49 > 0:16:51I'll take your bid now, 260.
0:16:51 > 0:16:53265?
0:16:53 > 0:16:57265, 270.
0:16:57 > 0:17:05270, 275. I'll take 1,000. 271, 272,
0:17:06 > 0:17:10273, 274,
0:17:10 > 0:17:15275, 276, 277.
0:17:15 > 0:17:16Behind you, 277?
0:17:16 > 0:17:19If not, 276 down here.
0:17:19 > 0:17:21First time, second time,
0:17:21 > 0:17:24third and last time, if you're all done...
0:17:24 > 0:17:27Sold, 276, well bought.
0:17:28 > 0:17:33'The successful bidder, paying £276,000, was Michael.
0:17:33 > 0:17:35'He's a local headmaster.'
0:17:35 > 0:17:40# We don't need no education... #
0:17:40 > 0:17:43'And he already lives on the same street.'
0:17:43 > 0:17:47I saw that the property was on the market first of all with an estate agent.
0:17:47 > 0:17:53I didn't pay too much attention to it, and then it went on auction, and the posters were up in the window
0:17:53 > 0:17:58that it was going for auction, and I came to have a look at it.
0:17:58 > 0:18:02What interested me about this house is that it really does have
0:18:02 > 0:18:05the capacity to be a very nice house, much bigger than the one
0:18:05 > 0:18:08I live in at the moment on the same street.
0:18:08 > 0:18:11'Michael's considering relocating down the road from
0:18:11 > 0:18:16'where he currently lives to this new place he's bought next to the pub.'
0:18:17 > 0:18:22The planning has gone into the local authority, and the idea
0:18:22 > 0:18:25is really to keep the Georgian style, certainly the exterior.
0:18:25 > 0:18:32One of the exciting things to do here is to convert the basement into an all-through kitchen diner.
0:18:32 > 0:18:35It will need a bit of underpinning, and that basically will lead out
0:18:35 > 0:18:39through French windows into a courtyard garden.
0:18:39 > 0:18:43'Well, that certainly is an ambitious project,
0:18:43 > 0:18:46'and whenever you want to build right up to a neighbour's wall, you
0:18:46 > 0:18:53'will need to get a qualified lawyer to draw up a party wall agreement, and that can prove quite expensive.'
0:18:53 > 0:19:00We're going to be taking the central staircase out and putting the staircase on the flank wall, outside
0:19:00 > 0:19:06the flank wall, because there's an alleyway which joins this house to the pub next door.
0:19:11 > 0:19:16'As you can see, building work is all the rage here. The pub next door is having the roof fixed, so Michael
0:19:16 > 0:19:19'collared the builder for his advice.'
0:19:23 > 0:19:26Can we have a look at this over here?
0:19:26 > 0:19:30- What do you think about the idea of French windows?- That'd work, yeah.
0:19:30 > 0:19:33I think it would be good, it would be a much larger house.
0:19:33 > 0:19:36From a two-bedroom house, it will open it up. Do think it will work?
0:19:36 > 0:19:38Yeah, it's not a problem.
0:19:38 > 0:19:42'Michael paid 276,000 for this cottage,
0:19:42 > 0:19:47'and he's delighted that builder Ron has agreed to take the work on.'
0:19:47 > 0:19:49He's worked in this part of the world for a long time,
0:19:49 > 0:19:52so knows these Georgian houses extremely well.
0:19:54 > 0:19:59'There's no space to get a digger into the garden, but Ron knows what he's letting himself in for.'
0:19:59 > 0:20:03Lots of hard work! Lots of earth coming out, lots of concrete going in,
0:20:03 > 0:20:08so there's about 20 skips to come out of there, and probably about 15 ton of concrete to go back in.
0:20:08 > 0:20:12The whole building will be replastered and rewired, replumbed, new central heating.
0:20:12 > 0:20:17Basically all you end up left with is the four walls and the roof, everything else will be new.
0:20:17 > 0:20:23'Michael paid £276,000 for this cottage, so how much is he budgeting for the building work?'
0:20:23 > 0:20:27I think it'll cost about £75,000 to do everything here.
0:20:27 > 0:20:31So it's an expensive conversion,
0:20:31 > 0:20:34but I think probably, at the end of the day, a worthwhile one.
0:20:34 > 0:20:41'Join us later in the programme when you'll see why headmaster Michael was close to getting a detention
0:20:41 > 0:20:46'the first time we came back and there was nothing to show, but how finally,
0:20:46 > 0:20:50'four-and-a-half years on, he got top marks for this refurbishment.'
0:20:56 > 0:21:01'Coming up, fingers crossed the damp patch in this Lincoln house was just from a dripping tap.'
0:21:01 > 0:21:03A bit more serious, it could possibly be the roof.
0:21:03 > 0:21:06Either way, it needs to be checked out.
0:21:06 > 0:21:11'We return to this Georgian cottage in Greenwich four-and-a-half years after we first saw it,
0:21:11 > 0:21:16'where a magnificent cellar conversion is now finished.'
0:21:18 > 0:21:22'But first, in Stoke, has Abraham kept to his original timescale?'
0:21:22 > 0:21:24If it goes our way, 8 weeks.
0:21:24 > 0:21:25It may go into 10.
0:21:28 > 0:21:34'Earlier in the programme, in Longton, Stoke-on-Trent, Abraham, a property developer
0:21:34 > 0:21:40'with his own lettings company, had paid just £19,000 for this shop with a one-bedroom flat above.
0:21:40 > 0:21:44'His children must've thought he was playing Monopoly, as he also paid
0:21:44 > 0:21:47'£15,000 for the neighbouring property.
0:21:47 > 0:21:53'But once you went round the back, you could see some major structural problems with these terrible twins.
0:21:53 > 0:21:57'Abraham planned to refurbish both and rent out the two top-floor flats.
0:22:01 > 0:22:08'Five-and-a-half months later, the outside appearance of both properties has definitely changed.
0:22:08 > 0:22:11'The retail unit has been let out to a flooring company.
0:22:11 > 0:22:15'Upstairs, the living room of the flat has been refurbished,
0:22:15 > 0:22:18'as well as the kitchen...
0:22:20 > 0:22:22'..and the bedroom.
0:22:23 > 0:22:27'Next door, the ground floor office has just been tidied up.
0:22:29 > 0:22:32'But again, up on the first floor, the flat has been refurbished
0:22:32 > 0:22:35'and, like next door, both flats now have tenants.
0:22:37 > 0:22:40'But, as Abraham explains, buying two properties doubled
0:22:40 > 0:22:44'the hidden structural problems that he discovered.'
0:22:44 > 0:22:46When we had a good look at the building,
0:22:46 > 0:22:51we realised the gable end wasn't structurally safe, so that was unforeseen.
0:22:51 > 0:22:53But we were quite lucky.
0:22:53 > 0:22:57We were doing the roof anyway, so the scaffolding would've been used
0:22:57 > 0:23:02to go up to do the roof, so whilst we were up there, we did what we needed to do.
0:23:02 > 0:23:07'Apart from the gable end, both roofs had to be replaced, along with new chimney stacks and wiring.'
0:23:07 > 0:23:12As you can see, we've had a new kitchen put in, a whole new bathroom,
0:23:12 > 0:23:17decorated throughout, carpets throughout. That's about it.
0:23:17 > 0:23:21'Abraham knew his lettings company had several potential tenants.
0:23:21 > 0:23:25'He was keen to get the flats refurbished as quickly as possible so he could start to generate
0:23:25 > 0:23:30'income from this property that he'd paid £19,000 for at auction.'
0:23:32 > 0:23:38It's taken us just under three months to do the work, and we've spent
0:23:38 > 0:23:41about 20,000 altogether on both properties.
0:23:41 > 0:23:45'Remember, Abraham had allowed £25,000 to £30,000 to refurbish both places,
0:23:45 > 0:23:50'and even after all that structural work, he's come in under budget.
0:23:50 > 0:23:54'But most of the refurbishment on both properties has been done
0:23:54 > 0:23:57'on the first floor, so how much did that cost?'
0:23:57 > 0:24:01Just the flats cost us about 5,000 to get it all ready.
0:24:01 > 0:24:05But somebody's living here now, so it's bringing some money back to us.
0:24:06 > 0:24:09'Although both flats and the shop are rented out,
0:24:09 > 0:24:13'access to the flat above the retail unit is through the shop,
0:24:13 > 0:24:18'which could prove rather inconvenient as they're let to different people.
0:24:18 > 0:24:20'But wasn't the plan to have the same tenant for both?'
0:24:20 > 0:24:22That was initially the idea.
0:24:22 > 0:24:25The company I've taken on downstairs, they have started
0:24:25 > 0:24:28moving their stuff into the office. It's more used as a showroom.
0:24:28 > 0:24:30Shouldn't be a problem.
0:24:30 > 0:24:35'I don't know if it was luck or planning, but it's worked out well for Abraham.
0:24:35 > 0:24:40'The property next door has yet to find a downstairs tenant, so that could still prove to be a problem.
0:24:40 > 0:24:43'How much is he charging for the two flats?'
0:24:43 > 0:24:48The property next door, that's producing an income of 380 per calendar month.
0:24:48 > 0:24:50The rent upstairs is £400 per calendar month,
0:24:50 > 0:24:53and the chap's been living up there for the last month or two.
0:24:53 > 0:24:58'On first impression it might appear that Abraham hasn't gone over the top with the finish here, but he's
0:24:58 > 0:25:03'an experienced property developer with over 34 properties all rented out in Manchester, Blackpool and
0:25:03 > 0:25:10'Stoke-on-Trent, so he obviously knows what level to do a property to in order to keep his tenants happy.
0:25:14 > 0:25:17'Time now to see how two local estate agents will rate
0:25:17 > 0:25:22'these two properties that Abraham has now added to his portfolio.'
0:25:22 > 0:25:25The commercial unit is relatively small, it's in a secondary location,
0:25:25 > 0:25:28but it benefits from a large display window to the front.
0:25:28 > 0:25:30The one-bed flat upstairs is quite small.
0:25:30 > 0:25:34It's had a minor refit, and is in pretty poor condition.
0:25:34 > 0:25:38Structural work was certainly necessary in order to get the finance on it.
0:25:38 > 0:25:41If he was to sell it, he'd need to do structural work
0:25:41 > 0:25:44for any reports required by the banks or mortgage lenders.
0:25:44 > 0:25:46I think this was a good investment.
0:25:46 > 0:25:50The owner, by putting a lease in place, has substantially increased the value.
0:25:50 > 0:25:53The main negative for the property is that it cannot be split.
0:25:53 > 0:25:56The flat isn't self contained and will have to be let to one person,
0:25:56 > 0:25:57which will limit the market.
0:25:57 > 0:26:01'That's not proved to be a problem for Abraham.
0:26:01 > 0:26:03'It sounds like the person who's renting the shop
0:26:03 > 0:26:06'is happy for the tenant of the flat to enter via the shop.
0:26:06 > 0:26:10'The question is, will Abraham be happy with the current market
0:26:10 > 0:26:15'value of the shop and flat that he paid £19,000 for on auction day?
0:26:15 > 0:26:21'Remember, he spent another £20,000 refurbishing both properties.'
0:26:21 > 0:26:23I'd put a combined value of the shop and flat at £60,000.
0:26:23 > 0:26:30I'd put the combined value of the shop and first floor flat at between £45,000 to £50,000.
0:26:31 > 0:26:35'Assuming half of the budget went on this property, that would represent
0:26:35 > 0:26:40'a minimum pre-tax profit for the shop with flat above, of £29,000.
0:26:40 > 0:26:43'Is Abraham happy with that?'
0:26:43 > 0:26:47The values are good because obviously I paid a lot less than that for both of the units.
0:26:47 > 0:26:50That's why we're in the game.
0:26:50 > 0:26:54'Abraham's charging his tenant above the shop £400 per calendar month,
0:26:54 > 0:26:59'so what's the typical rental income that other landlords around here are achieving?'
0:26:59 > 0:27:02I think the commercial premises on its own would rent at £200 a month,
0:27:02 > 0:27:05and the flat upstairs on its own at £200 a month.
0:27:05 > 0:27:07A combined rental of £400.
0:27:07 > 0:27:10I would rent the ground floor shop at £200 per calendar month
0:27:10 > 0:27:13and the first floor flat at £300 per calendar month.
0:27:13 > 0:27:15As a whole, making £500 per calendar month.
0:27:15 > 0:27:20The rental values that the estate agents have said, er, again, we've
0:27:20 > 0:27:25achieved slightly more than what they've said, and we're quite happy with the amount we've achieved.
0:27:25 > 0:27:29'Perhaps there's a lesson here for faint-hearted investors.
0:27:29 > 0:27:33'When you've got over 34 other properties to fall back on, sometimes you may take a gamble,
0:27:33 > 0:27:36'cross your fingers and hope it pays off.
0:27:36 > 0:27:42'But an important word of warning, never take the risk if you can't afford to carry the loss.'
0:27:44 > 0:27:47It's been quite a good investment.
0:27:47 > 0:27:50We've had better investments in the past, but all in all it's been relatively good.
0:28:02 > 0:28:05Seven miles north of the beautiful city of Lincoln
0:28:05 > 0:28:08is the village of Dunholme, surrounded by endless fields.
0:28:08 > 0:28:12A lot of people think Lincolnshire is rather flat, and certainly if
0:28:12 > 0:28:14you're in the south, in the Fens, you would be right.
0:28:14 > 0:28:16But the north is slightly hillier.
0:28:16 > 0:28:19Big question - in the middle, where I am,
0:28:19 > 0:28:24is the property market flat as a pancake or rather more uplifting?
0:28:24 > 0:28:29'The landscape does seem pretty level, but also rather lovely.
0:28:29 > 0:28:33'Behind almost every hedge there's a well-kept garden.
0:28:33 > 0:28:35'What a perfect rural setting.'
0:28:35 > 0:28:41Right in the centre of the village is Ryland Road, and the property I'm here to see.
0:28:41 > 0:28:43It's a three-bedroomed mid-terrace.
0:28:43 > 0:28:46Had a guide price of 80,000 quid.
0:28:46 > 0:28:50It certainly scores on the kerb appeal front. Lovely garden.
0:28:50 > 0:28:52Let's see if the inside matches up.
0:28:52 > 0:28:58'It looks like a beautifully framed snapshot of one of the many charming houses around here.
0:28:58 > 0:29:01'But the property I'm here to see is not a historic character cottage.
0:29:01 > 0:29:03'In fact, it was built in the 1950s.
0:29:03 > 0:29:09'But it's much more appealing than I was expecting, and the front garden sets it well back from the road.'
0:29:10 > 0:29:13Really nice looking property from the outside, I have to say.
0:29:13 > 0:29:16So, what's it like? Well...
0:29:17 > 0:29:21There's an extremely big, what do you call that? An entrance porch area?
0:29:21 > 0:29:25Actually, I do think that's a very practical thing, somewhere to put your coats.
0:29:25 > 0:29:28It's actually big enough to store a bike, so we quite like that.
0:29:28 > 0:29:34Through into the lounge, nice bay windows, lots of light pouring in through those.
0:29:34 > 0:29:38I guess they're not authentic to this property, but I do like the feel they give to the room.
0:29:38 > 0:29:43Something which is obviously missing is central heating, cos there's no radiators, but you have got
0:29:43 > 0:29:45an open fire there. Not a bad sized space.
0:29:45 > 0:29:49It's a bit tired and dated, but it doesn't smell damp.
0:29:49 > 0:29:52Not a bad start.
0:29:52 > 0:29:56'The kitchen is also a decent size, but again the decor is really dated.
0:29:56 > 0:30:01'This old storage heater and these units have certainly seen better days.
0:30:03 > 0:30:09'Just past the kitchen, I found something which has got me rather puzzled.'
0:30:09 > 0:30:10Now, this is very odd.
0:30:10 > 0:30:15This is some kind of a corridor which links the front of the house with the rear garden.
0:30:15 > 0:30:18Fair enough, I suppose, if you want your gardener to pass
0:30:18 > 0:30:24through that passage through the house, for us to have a gardener! But this is also very, very strange.
0:30:24 > 0:30:29It's this little room at the side here, and it's just not utilising the space at all well.
0:30:29 > 0:30:34What would you do with it? I guess you could have this as a utility room, perhaps.
0:30:34 > 0:30:36My preferred option would be to take out this wall,
0:30:36 > 0:30:41expand into the kitchen to create a really nice family kitchen area.
0:30:41 > 0:30:45But you've got to do something cos as it stands, it's a bit strange.
0:30:45 > 0:30:50'It also means you get two front doors, as this one leads to the passageway.
0:30:50 > 0:30:55'I suppose it does make a good place to take off the kids' muddy boots or dry off a wet dog.
0:30:55 > 0:31:00'It's the only route to the back garden for this property, which was guided at £80,000.
0:31:00 > 0:31:03'It's probably bigger than it appears.
0:31:03 > 0:31:10'In fact, I like that almost overgrown feel which gives it more character than just a straight lawn.
0:31:12 > 0:31:15'So, what's on offer upstairs?'
0:31:15 > 0:31:19Upstairs here, it feels solid, and it's not a bad sized space either.
0:31:19 > 0:31:25You've got two big double bedrooms, one there and one on the other side of the stairs, not in bad condition.
0:31:25 > 0:31:29A bathroom... Looks like it could do with a bit of updating, the old avocado suite.
0:31:29 > 0:31:31And a separate loo.
0:31:31 > 0:31:36The jury's out on whether or not you knock that through to create one bathroom and toilet.
0:31:36 > 0:31:41I actually like having a separate loo, I think it's very practical, especially in a family house.
0:31:41 > 0:31:45We've got a second bedroom there, as I said. Here's something interesting.
0:31:45 > 0:31:48You've got a big water tank taking up a lot of space in this massive cupboard.
0:31:48 > 0:31:52If you put, say, a combi boiler in downstairs when you redo the central
0:31:52 > 0:31:55heating anyway, you'd create a lot of extra space.
0:31:55 > 0:32:00Through into the box bedroom, and the only problem I've seen so far.
0:32:00 > 0:32:04Oh, dear. That doesn't feel damp, but there's obviously been some kind of a water leak.
0:32:04 > 0:32:07In the loft there, there's probably a water tank.
0:32:07 > 0:32:10That's the system in here at the moment. That might be leaking.
0:32:10 > 0:32:13Or a bit more serious, it could be the roof.
0:32:13 > 0:32:15Either way, it needs to be checked out.
0:32:15 > 0:32:21'Those two front bedrooms really are a fantastic size, and once you've got rid of that 1970s suite
0:32:21 > 0:32:25'and put in something more up-to-date, the bathroom will be transformed.
0:32:25 > 0:32:28'I reckon this is a very appealing little house.
0:32:28 > 0:32:31'It works extremely well as a family home,
0:32:31 > 0:32:35'and, with that garden and this setting, it could be a lovely one.
0:32:35 > 0:32:38'Does a local estate agent share my enthusiasm for this property that
0:32:38 > 0:32:41'went to auction with a guide price of 80,000?'
0:32:41 > 0:32:44The property offers good-sized bedrooms.
0:32:44 > 0:32:47With the right refurbishment would make a good family home.
0:32:47 > 0:32:49There's also a good-sized garden.
0:32:49 > 0:32:53Replacing the roof or repairing it could be a costly expense.
0:32:53 > 0:32:57It's certainly worthwhile getting a specialist to check into that.
0:32:57 > 0:33:03With the property potentially being over 50 years old, I would strongly advise that is checked.
0:33:03 > 0:33:06'What about that strange passageway?'
0:33:06 > 0:33:11Many of these covered walkways have been converted into utility areas
0:33:11 > 0:33:16or extensions to kitchens where applicable, but it is the only passageway connecting the front
0:33:16 > 0:33:19to the rear of the property, being a mid-terraced house.
0:33:19 > 0:33:22'The guide price of £80,000 certainly sounded good value,
0:33:22 > 0:33:25'but to renovate the house fully would cost quite a bit.
0:33:25 > 0:33:30'Assuming the new purchaser has the budget to do the work, how much could the property be worth
0:33:30 > 0:33:32'fully refurbished and put back on the market?'
0:33:32 > 0:33:36In current condition, the property's worth in the region of £90,000.
0:33:36 > 0:33:39I do believe there is scope to improve the value of this home with the right
0:33:39 > 0:33:44application and refurbishment, and it could be worth 120,000 when it's done.
0:33:44 > 0:33:49The rental market is very strong in the area, and I believe the property would rent well, as there
0:33:49 > 0:33:51are limited stock available for this type of property.
0:33:51 > 0:33:56In my opinion, the property would rent for somewhere in the region of £550 a month.
0:34:00 > 0:34:06Well, this little house probably worked quite well in the 1950s, but to bring it up to today's standards
0:34:06 > 0:34:10it is going to need a bit of time and money spending on it, but I think it's worth it.
0:34:10 > 0:34:15Intrinsically, it's a nice house, good area, and potentially value for money.
0:34:15 > 0:34:17Let's see who fancied it at the auction.
0:34:20 > 0:34:22Lot number one, in the village of Dunholme.
0:34:22 > 0:34:25It's a three-bedroom terrace property,
0:34:25 > 0:34:27in need of some cosmetic upgrading.
0:34:27 > 0:34:29Guided at £80,000. Who'll bid to start me?
0:34:29 > 0:34:34Would anyone like to start me at £80,000 for this property?
0:34:34 > 0:34:3580,000?
0:34:35 > 0:34:3770,000, if you like.
0:34:37 > 0:34:3970,000, sir, thank you very much.
0:34:39 > 0:34:44£70,000 I'm bid. At £70,000, the bid is in the front, 72 on the right.
0:34:44 > 0:34:48At 72, 74, 76.
0:34:48 > 0:34:52At 76, 78, at 78.
0:34:52 > 0:34:56£80,000. At £80,000, the bid is on my right.
0:34:56 > 0:34:5982? At 82.
0:34:59 > 0:35:01Anyone like to come in at £83,000?
0:35:01 > 0:35:0383, thank you, sir.
0:35:03 > 0:35:05Back in at £83,000.
0:35:05 > 0:35:07At 83, will you go 4, sir?
0:35:07 > 0:35:11At £84,000.
0:35:11 > 0:35:13At £84,000, anyone else coming in?
0:35:13 > 0:35:16At £84,000 once,
0:35:16 > 0:35:21£84,000 twice, third and the last time of asking.
0:35:21 > 0:35:23At £84,000...
0:35:23 > 0:35:25Thank you very much.
0:35:25 > 0:35:28'The successful bidder, who paid 84,000, was Marcus.
0:35:28 > 0:35:33'It's his first property purchase, and he intends to make it his first home.
0:35:33 > 0:35:38'I met up with him back there to hear about his plans.'
0:35:38 > 0:35:41- Marcus, lovely to meet you. Congratulations.- Thank you.
0:35:41 > 0:35:43Why did you want to buy this house?
0:35:43 > 0:35:46I've lived in the village all my life.
0:35:46 > 0:35:49I'm a first-time buyer, so the price was a good price.
0:35:49 > 0:35:53- Quite a lot of house for the money, isn't it?- Yeah, three bedrooms.
0:35:53 > 0:35:56If I was to look at buying property of equal value in
0:35:56 > 0:36:00Lincoln city centre, you're looking at a two bedroom
0:36:00 > 0:36:04Victorian terrace property, so I've got quite a good deal, really, for the price.
0:36:04 > 0:36:06Where are you living at the moment?
0:36:06 > 0:36:08I currently live with my parents just up the lane, actually.
0:36:08 > 0:36:11- So this will be your first place? - My first place, yeah.
0:36:11 > 0:36:14- How does that feel? - Yeah, it's exciting.
0:36:14 > 0:36:16But I'll be okay, yeah.
0:36:16 > 0:36:19'Marcus works in IT at the local college.
0:36:19 > 0:36:25'Since this is his first purchase, he's not got much experience of renovating properties.
0:36:25 > 0:36:31'So I'm keen to find out how he hopes to bring this little place into the 21st century.'
0:36:31 > 0:36:33Tell me, then, what are you going to do?
0:36:33 > 0:36:40Just tidy the rooms up a bit, change the decor, wallpaper, put a modern bathroom suite in.
0:36:40 > 0:36:43What about the kitchen? What are you going to do about that?
0:36:43 > 0:36:47I'll hopefully be able to put a new kitchen unit in, hopefully.
0:36:47 > 0:36:51You've got this strange passageway at the back and that little room.
0:36:51 > 0:36:53What are you going to do about that?
0:36:53 > 0:37:00The room at the back, I possibly might put my utilities in there, my washing machine, fridge-freezer, etc.
0:37:00 > 0:37:04I was thinking of knocking the wall down, possibly extending the kitchen,
0:37:04 > 0:37:07but I'm not too sure if that's a supporting wall.
0:37:07 > 0:37:11It would make the kitchen bigger, but it's nice to have a separate utility, isn't it?
0:37:11 > 0:37:13- Yeah.- Now, upstairs, there's
0:37:13 > 0:37:19a bit of a problem on one of the walls with some damp, or past damp. Any ideas where that's coming from?
0:37:19 > 0:37:23That was a leak in the header tank, a steel tank which had just corroded.
0:37:23 > 0:37:27We've turned the water off now, so we'll put a new tank in and go from there, really.
0:37:27 > 0:37:31'I'm a little worried that Marcus hasn't really got the experience
0:37:31 > 0:37:34'or thought through the budget necessary here.
0:37:34 > 0:37:36'He's hoping to put in central heating and a new bathroom,
0:37:36 > 0:37:41'as well as decorate, all for around £5,000 to £6,000.
0:37:41 > 0:37:45'He's going to rope in some friends to help out, and do a lot of the work himself.'
0:37:47 > 0:37:48What's the time scale?
0:37:48 > 0:37:54Probably about six months. Hopefully do as much as I can in that time and then see.
0:37:54 > 0:37:58- Congratulations, and I look forward to seeing how you get on.- Thanks very much.
0:37:58 > 0:38:00- Good luck in your new home. - Thank you.
0:38:00 > 0:38:05'For his first property purchase, Marcus looks to have come up trumps with this house.
0:38:05 > 0:38:08'What a great plot it sits on. It looks huge.'
0:38:13 > 0:38:17Well, so often people can't afford to buy a house in the place where they grew up.
0:38:17 > 0:38:22How great is it that Marcus can actually get his first home in his home village?
0:38:22 > 0:38:26Anyway, I'm really interested to see how he gets on, particularly with that corridor.
0:38:26 > 0:38:28Will it stay or will it go?
0:38:28 > 0:38:31You can find out later in the show.
0:38:33 > 0:38:37It's been a while now since we met our purchasers and heard about their
0:38:37 > 0:38:40hopes and dreams for the properties they've bought.
0:38:40 > 0:38:43How have they been getting on since we left them?
0:38:43 > 0:38:46Time to go back and find out.
0:38:48 > 0:38:51'Time now to return to Greenwich in South London,
0:38:51 > 0:38:54'and this lovely cottage.
0:38:54 > 0:39:01'It had lots to tempt buyers at auction, a quiet walled garden and a cellar.
0:39:01 > 0:39:09'It was eventually bought for 276,000 by local headmaster Michael,
0:39:09 > 0:39:11'who already lives in the same road.
0:39:11 > 0:39:17'Michael planned to build a staircase as an extension in the alley next to the pub.
0:39:19 > 0:39:22'But when we first returned three months later,
0:39:22 > 0:39:25'the headmaster's homework hadn't been done.
0:39:25 > 0:39:27'The cottage had been knocked about, all right.
0:39:33 > 0:39:36'The side wall next to the pub had disappeared, but the council had
0:39:36 > 0:39:39'rejected Michael's plans for a two-storey extension.
0:39:42 > 0:39:46'But out the back, a single storey had been built, and the alley next
0:39:46 > 0:39:50'to the pub was going to provide extra downstairs accommodation.'
0:39:53 > 0:39:56If you remember, there were two rooms divided by a staircase, which led
0:39:56 > 0:39:59upstairs to the two bedrooms, so this wall has come out,
0:39:59 > 0:40:05and the wall of the new room will be the flank wall of the pub.
0:40:05 > 0:40:12The chimney breast over here has been taken out completely and the staircase moved to the side wall.
0:40:12 > 0:40:16'The kitchen / dining room which was planned for the cellar
0:40:16 > 0:40:19'was going to stretch the whole length of the house.
0:40:19 > 0:40:23'It sounded fabulous, but was then still an empty shell.
0:40:23 > 0:40:25'It's been quite an extensive project.
0:40:25 > 0:40:31'Once it's completed, it'll be a three-storey house with an additional bedroom.'
0:40:31 > 0:40:36'As this part of Greenwich is in a conservation area, Michael knew that
0:40:36 > 0:40:40'the finished appearance would be closely monitored by the planners.'
0:40:41 > 0:40:44All the external features have got to be approved by them,
0:40:44 > 0:40:47you can't have any old windows or doors put in.
0:40:47 > 0:40:50It's got to be in keeping with the rest of the street.
0:40:50 > 0:40:52'He certainly didn't want to upset the neighbours.
0:40:52 > 0:40:55'After all, he was already living on the same street.'
0:40:58 > 0:41:00I'm going to move in here.
0:41:00 > 0:41:04It's a slightly bigger house, or it will be a bigger house,
0:41:04 > 0:41:09than the one over the road, so I'm going to move in here when it's eventually completed.
0:41:09 > 0:41:16'Completing the house took another 18 months. Michael then moved across the street to his new home.
0:41:16 > 0:41:19'Now, four-and-a-half years after we first visited,
0:41:19 > 0:41:22'we've come back to see how he and his wife have settled in.
0:41:22 > 0:41:25'Such an impressive renovation can't have been cheap.
0:41:28 > 0:41:32'Out here, it looks like money could still be going down the drain.
0:41:32 > 0:41:34'We'll flush out the answer to that later.
0:41:37 > 0:41:40'Meanwhile, inside, Michael's builder has transformed
0:41:40 > 0:41:45'this tiny Georgian cottage into a stunning designer property.
0:41:45 > 0:41:51'We'd already seen how downstairs was knocked through into one large space, but now the refurbishment's
0:41:51 > 0:41:58'finished, it's turned into a gorgeous living area, beautifully done and featuring plenty of light.
0:42:01 > 0:42:05'The new repositioned staircase leads up to the bedrooms and down to the
0:42:05 > 0:42:09'former cellar, where a huge kitchen/diner has been created.
0:42:17 > 0:42:23'Upstairs, the two bedrooms of this former worker's cottage are attractively decorated.
0:42:23 > 0:42:28'There's great attention to detail here, and the whole place just feels so much bigger.
0:42:28 > 0:42:32'What a difference the alleyway next to the pub has made.'
0:42:34 > 0:42:38Well, what we've done is we've taken out the central staircase.
0:42:38 > 0:42:43There was a staircase over here, which led up to two bedrooms upstairs. That has gone.
0:42:43 > 0:42:45The wall which divided the front of the house
0:42:45 > 0:42:51to the back of the house, that's gone, so there were two rooms where I'm standing, now it's one room.
0:42:51 > 0:42:56And the staircase has been moved from the centre of the house to the side of the house.
0:42:56 > 0:43:00And that leads to two bedrooms and a bathroom upstairs.
0:43:00 > 0:43:06'Repositioning the staircase freed up valuable space from the first floor...
0:43:07 > 0:43:09'..for the front and back bedrooms.
0:43:12 > 0:43:16'And a new white bathroom has been installed as well.
0:43:20 > 0:43:23'Although the extension into the alleyway is only on the ground
0:43:23 > 0:43:29'floor, the added floor space it provided allowed a second downstairs bathroom to be built as well.
0:43:33 > 0:43:36'And once the old extension has been demolished, a new third
0:43:36 > 0:43:41'bedroom-cum-office was created in the new-build, as Michael explains.'
0:43:41 > 0:43:43This is the back extension.
0:43:43 > 0:43:48Originally, there was a very small bathroom and toilet at the end of the house, which was
0:43:48 > 0:43:54knocked down and this back extension built, which is now serving as a third bedroom to the house.
0:43:54 > 0:44:02We've made good use of the alleyway to build this back extension, and the patio garden.
0:44:02 > 0:44:06Not very big, but a nice little patio garden.
0:44:06 > 0:44:12And there are steps, quite steep steps, which lead to the basement kitchen/diner.
0:44:12 > 0:44:17'I think I might've chosen to keep a bit more grass, like the original garden.
0:44:17 > 0:44:20'It's a shame to lose that, especially as the stairs
0:44:20 > 0:44:23'down to the cellar conversion are also surrounded by flagstones.
0:44:23 > 0:44:27'Getting sufficient light into the dark cellar initially proved a
0:44:27 > 0:44:31'problem when Michael's application for a light well was rejected.
0:44:31 > 0:44:34'But after an appeal, permission was granted.'
0:44:34 > 0:44:36This is the basement kitchen.
0:44:36 > 0:44:43Originally, it was a very small cellar, you couldn't stand up in it, leading from the old staircase.
0:44:43 > 0:44:49We've again gutted this area, dug down quite low, as you can see, so we can now stand up in it.
0:44:49 > 0:44:55It had to be underpinned and tanked, because it's a basement, to avoid dampness.
0:44:55 > 0:45:01Originally, the wall was here to the end of the kitchen, but when we got permission for the light well, we've
0:45:01 > 0:45:04knocked that wall down and we've now got an extra five or six feet.
0:45:04 > 0:45:06A window here.
0:45:06 > 0:45:13And we've managed to use this space for putting a large settee and this is going to be eventually a little
0:45:13 > 0:45:18study area. As you can see, it isn't finished yet, the electrics have yet to be finished.
0:45:18 > 0:45:20We've got to do something with the
0:45:20 > 0:45:22pipe out there.
0:45:22 > 0:45:25'Re-routing that pipe could prove a problem,
0:45:25 > 0:45:31'but the window and light well are a big plus, as the cellar now doesn't need to rely on artificial light.'
0:45:31 > 0:45:36At the end of the day, although we've extended it and developed it, it's still an old Georgian cottage.
0:45:36 > 0:45:39It isn't going to be a huge house.
0:45:39 > 0:45:43The bedrooms upstairs are small and the storage space isn't as good as
0:45:43 > 0:45:49I'd want it to be, but nevertheless for what it is, it's a lovely house.
0:45:49 > 0:45:51I'm really happy here.
0:45:51 > 0:45:58'How much has this ambitious building project cost Michael on top of the 276,000 he paid at the auction?
0:45:58 > 0:46:02'You may remember he initially set a budget of 75,000.'
0:46:02 > 0:46:09I bought the house at auction for £276,000.
0:46:09 > 0:46:15I've spent about, on the building work, about £75,000.
0:46:16 > 0:46:22'In fact, Michael has spent 63,000 on the original conversion, and a
0:46:22 > 0:46:28'further 18 grand on the light well, making a total of £78,000.
0:46:28 > 0:46:32'Michael and his wife have moved in and made the house their home.
0:46:32 > 0:46:36'Is he keen to find out how much it's now worth?'
0:46:36 > 0:46:41Yes, I'm interested, but I hope it's more than I paid for it.
0:46:41 > 0:46:44I'd be disappointed if it wasn't.
0:46:47 > 0:46:50'Well, it's time to see what two local estate agents
0:46:50 > 0:46:52'will think of the finished cottage.
0:46:52 > 0:46:54'I think they're in for a pleasant surprise.
0:46:54 > 0:46:58'It's a heck of a lot better than it was on their last visit.'
0:46:58 > 0:47:01It's been around four years since I last looked at the house.
0:47:01 > 0:47:04There have been improvements since then.
0:47:04 > 0:47:07I'm quite shocked and surprised at how much better
0:47:07 > 0:47:09it is now that it was then.
0:47:09 > 0:47:15A complete transformation. The last time we came it was a building site.
0:47:15 > 0:47:19He's opened it up and done magic to the place.
0:47:19 > 0:47:20I like the house very much.
0:47:20 > 0:47:23It's finished to a very high standard throughout.
0:47:23 > 0:47:26It's very favourable in relation to other houses in this street.
0:47:26 > 0:47:29There are only a handful of semi-detached houses.
0:47:29 > 0:47:33There are a lot of terraced houses and the semis are highly desirable.
0:47:33 > 0:47:37It's a little bit wider than some of the houses in the street.
0:47:37 > 0:47:41The extra width creates a second bathroom which a number of properties don't have.
0:47:41 > 0:47:47With the extension, an extra third bedroom, which other houses don't have on the street.
0:47:47 > 0:47:48The bedrooms aren't a bad size.
0:47:48 > 0:47:51They're both doubles. They've got fitted wardrobes as well.
0:47:51 > 0:47:58A three-piece bathroom suite in the middle. Again, it works well.
0:47:58 > 0:48:01If the client wished to rent this property I'd expect
0:48:01 > 0:48:05to achieve between £1,600 and £1,700 per calendar month.
0:48:05 > 0:48:09If you were looking to rent the property out,
0:48:09 > 0:48:13I'd suggest something in the region of £1,800 a month,
0:48:13 > 0:48:20possibly stretching because of the location and proximity to the station,
0:48:20 > 0:48:23to about £2,000 a month.
0:48:23 > 0:48:27'Clearly there's a rental market around here and a good income to be had.
0:48:27 > 0:48:33Yes, that sounds fine, that sounds good, not that I'm renting this place out.
0:48:33 > 0:48:39'Michael and his wife have moved in, but I bet he'd love to hear what the house is now worth.'
0:48:39 > 0:48:42I'd say if you had to go on to the market at the moment,
0:48:42 > 0:48:49you're probably looking at an asking price of around 585,000 to £595,000.
0:48:49 > 0:48:53In terms of marketing, I'd put this house on the market at £600,000.
0:48:53 > 0:48:59'Blimey, that's £250,000 gross profit in the four years
0:48:59 > 0:49:02'since Michael bought the house at auction.
0:49:02 > 0:49:07'Considering there has been a credit crunch in that time, that's very impressive. Is he tempted to sell?'
0:49:07 > 0:49:14No, this is the house I live in and its valuation is of no importance to me until I want to sell it.
0:49:14 > 0:49:17I don't anticipate selling in the near future.
0:49:17 > 0:49:19'I agree.
0:49:19 > 0:49:25'Having created such an elegant home, who wouldn't want to stay in it and enjoy it for a few more years?
0:49:25 > 0:49:27'Top of the class, Michael!'
0:49:33 > 0:49:37'We're returning now to the Lincolnshire village of Dunholme, where earlier in the programme,
0:49:37 > 0:49:42'Marcus had bought this three-bedroomed terrace property for 84,000.
0:49:42 > 0:49:46'It was to be his first house as he was moving out of the family home.
0:49:46 > 0:49:50'He was delighted to have found somewhere in the village he grew up in.
0:49:54 > 0:50:00'Well, now, almost nine months later we're back to see how Marcus has settled in.
0:50:00 > 0:50:06'On the outside it looks like he's been very busy, removing trees in the front and back gardens.
0:50:08 > 0:50:12'Inside, the large living room now looks much more modern.
0:50:15 > 0:50:18'But the kitchen has hardly been tackled at all.
0:50:20 > 0:50:26'Upstairs, Marcus has now settled into his first home, but he's not done much refurbishment up here.
0:50:28 > 0:50:31'Down in the living room, Marcus's dad, a cabinet maker,
0:50:31 > 0:50:34'has lent a hand and that room has been transformed.'
0:50:34 > 0:50:41When I first bought the property there was an electric fire here, a small brick fireplace.
0:50:41 > 0:50:44When the property was built it was an old back boiler.
0:50:44 > 0:50:51We took the old back boiler out and then we built this area up with new bricks to install a gas fire.
0:50:51 > 0:50:57When we took the old fireplace away, the plaster that was on there was very loose so we decided
0:50:57 > 0:51:00to remove the old plaster off completely, down to the bare brick.
0:51:00 > 0:51:03A colleague from work plastered over the top.
0:51:03 > 0:51:06My dad then installed the marble fireplace for me.
0:51:06 > 0:51:09It took him a day, but he wanted to do it properly.
0:51:09 > 0:51:14When the gas fire goes in, the gas pipes will come down this
0:51:14 > 0:51:18chute here and when they're installed, we'll plaster over the top.
0:51:18 > 0:51:20It'll hopefully be a neat job.
0:51:20 > 0:51:26'As it's his first house, understandably Marcus had little experience of DIY.
0:51:26 > 0:51:28'He soon discovered that renovating isn't always
0:51:28 > 0:51:32'as easy as some makeover programmes would have you believe.'
0:51:32 > 0:51:37When I first bought the house, I thought it was cosmetic work that needed to be done, but
0:51:37 > 0:51:41now I begin to realise what I've got myself in for.
0:51:41 > 0:51:46It's not something I've ever done before, so I'm learning as I go along.
0:51:46 > 0:51:48It's a lot to learn.
0:51:48 > 0:51:51'As Marcus works as an IT technician at the local college,
0:51:51 > 0:51:57'he should be able to do quite a lot of research, and he's already roped in two friends to come and help.'
0:51:57 > 0:52:01I've had some colleagues from work who do different trades.
0:52:01 > 0:52:06One guy is a plumber and the other is a plasterer, so that saved me a bit of money.
0:52:06 > 0:52:12'Money and time, because plumbing and plastering can be a nightmare the first few times you have a go.
0:52:14 > 0:52:19'If Marcus can maintain this level of finish throughout the house, he'll certainly have a lovely home.
0:52:19 > 0:52:22'But so far progress has been slow.
0:52:22 > 0:52:27'Apart from the living room and cutting down the conifers, what else has been done?'
0:52:29 > 0:52:32We replaced the heating tank with a new plastic tank.
0:52:32 > 0:52:36In the bedroom that was directly below the tank, the plaster was
0:52:36 > 0:52:41pretty badly damaged, so we just took that all off to make it
0:52:41 > 0:52:45dry for the time being until we can get round to working in that room.
0:52:45 > 0:52:48'Marcus is just tackling one room at a time,
0:52:48 > 0:52:53'which has meant that the corridor from the front of the house to the back garden hasn't changed yet.
0:52:53 > 0:52:58'But I still think it would be a good idea to move that wall and open up the kitchen.'
0:52:58 > 0:53:02There are so many things I could do to the house but the trouble is knowing where to start.
0:53:02 > 0:53:03I'm possibly thinking of
0:53:03 > 0:53:08knocking the wall between the bathroom and the toilet, because at the moment they're separate.
0:53:08 > 0:53:13That's my thought to do next, but whether I'll do it straight away I'm not sure at the moment.
0:53:13 > 0:53:17'My concern would be if Marcus had to change the plumbing or electrics
0:53:17 > 0:53:22'after all the rooms have been decorated. For example, does the house have central heating?'
0:53:22 > 0:53:26The only heating I've got at the moment are the electric storage heaters.
0:53:26 > 0:53:32In a year or two's time I might look at doing the central heating to make it a bit more cosy.
0:53:32 > 0:53:37'When we first met up with Marcus, he had a budget of around £6,000 for the work he was planning.
0:53:37 > 0:53:41'So far he's only scraped the surface of the renovation, but how much has he spent?
0:53:41 > 0:53:45'Is he still on track with his original estimate?'
0:53:46 > 0:53:50With the work in the lounge, including the
0:53:50 > 0:53:55hot water tank upstairs, I think about £1,400 altogether.
0:53:55 > 0:54:01My original budget was an estimate of around 6000, but as I've been
0:54:01 > 0:54:08doing various things to the house and learning how much things cost in the real world and what I'd like to do in
0:54:08 > 0:54:13the near future, it's probably double that now.
0:54:16 > 0:54:19'Time to see what two local estate agents think of the progress
0:54:19 > 0:54:22'Marcus has made on his first home.'
0:54:23 > 0:54:27The living-room is a spacious room and the decoration is neutral,
0:54:27 > 0:54:28it's in keeping with what most people
0:54:28 > 0:54:30would choose in this day and age.
0:54:30 > 0:54:34The standard of the finish that's been achieved in the front room,
0:54:34 > 0:54:36if that's carried on through the house,
0:54:36 > 0:54:40then it'll be a really good example of a beautiful cottage.
0:54:40 > 0:54:45If he can convert the separate toilet and bathroom into one, creating more space,
0:54:45 > 0:54:48and gaining a three-piece suite, that would be very preferable.
0:54:48 > 0:54:52I think if I was the lucky owner of this property, I'd
0:54:52 > 0:54:55want to open it up a bit more to suit more modern living.
0:54:55 > 0:55:01'All improvements that Marcus has planned for the future, but for the time being those can wait.
0:55:01 > 0:55:07'The big plus for him was buying a house in this village, but how much is it now worth in this state?
0:55:07 > 0:55:14'Remember he paid £84,000 at auction and has spent £1,400 on it.'
0:55:14 > 0:55:20I think if the property was brought to market as it stands, with the works that have already been
0:55:20 > 0:55:25carried out, I'd be asking somewhere in the region of 95 to 100,000.
0:55:25 > 0:55:27Once the modernisation has taken place,
0:55:27 > 0:55:31I think you could ask somewhere in the region of 120 to 125,000.
0:55:31 > 0:55:33With the work that's currently been done, in today's market,
0:55:33 > 0:55:37I would estimate the value to be in the region of 90 to £95,000.
0:55:37 > 0:55:39With the right application and Investment,
0:55:39 > 0:55:42I'd expect the property to be worth in the region of 110 to 120,000.
0:55:42 > 0:55:50'Before deducting the usual expenses, that's about £9,500 gross profit so far.
0:55:50 > 0:55:54'Even if his final budget does double to £12,000,
0:55:54 > 0:55:57'based on that £120,000 valuation,
0:55:57 > 0:56:01'there could be a £24,000 gross profit.'
0:56:01 > 0:56:05I thought the property might be worth about 110
0:56:05 > 0:56:10when the work is completed, so that's very good.
0:56:10 > 0:56:12The value of the property, as it stands at the moment,
0:56:12 > 0:56:16I'm very pleased with, even though I've only done minimal work.
0:56:16 > 0:56:18'And Marcus has no intention of looking for tenants.
0:56:18 > 0:56:24'He doesn't want to rent the house out as this is now his home in the village where he grew up.'
0:56:24 > 0:56:27I've been looking at buying property over the last two years,
0:56:27 > 0:56:31but when this property came up to auction I was quite interested.
0:56:31 > 0:56:36The fact that I could potentially buy a property in the village.
0:56:36 > 0:56:40Houses in the village don't tend to come up, certainly not in the price range that I was looking at.
0:56:40 > 0:56:43I'm very lucky to be able to get this.
0:56:49 > 0:56:53Well, that's all we've got time for on today's programme,
0:56:53 > 0:56:56but we'll have lots more for you next time on Homes Under The Hammer.
0:56:56 > 0:56:59- Make sure you join us again soon. - See you then.- Bye-bye.
0:57:17 > 0:57:20Subtitles by Red Bee Media Ltd
0:57:20 > 0:57:23E-mail subtitling@bbc.co.uk