0:00:02 > 0:00:03Welcome to the show.
0:00:03 > 0:00:05Buying property can be a long, drawn out process,
0:00:05 > 0:00:07but not when you buy at auction.
0:00:07 > 0:00:11And you should have the keys to the property you want in just 28 days.
0:00:11 > 0:00:15It really can be that quick when you buy your home under the hammer.
0:00:40 > 0:00:46Sometimes buying property at auction can be a bit of a gamble, but not if you do your research first.
0:00:46 > 0:00:50So are the buyers on today's show on a winning streak?
0:00:50 > 0:00:52Here's what they bought.
0:00:53 > 0:00:57In Manchester, this two-bed bungalow has a unique selling-point.
0:00:57 > 0:01:01This is what sets it apart from your average common or garden bungalow -
0:01:01 > 0:01:02it's got another floor!
0:01:02 > 0:01:07Will this property in Kent be a hard nut to crack or all sweetness and light?
0:01:07 > 0:01:12Ha ha! Look at this. Marshmallow pink!
0:01:14 > 0:01:20And the layout inside these terrible twin houses in Cornwall is seriously messing with my head.
0:01:20 > 0:01:23Very, very odd.
0:01:23 > 0:01:26All these properties have been sold at auction
0:01:26 > 0:01:30and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:30 > 0:01:32Sir. Well done.
0:01:40 > 0:01:46This is it Tyldesley in Greater Manchester, four miles from Wigan, six miles from Bolton.
0:01:46 > 0:01:51An active little place. It's got its own brass-band, rugby club, even a model aeroplane club.
0:01:51 > 0:01:54I wonder if the property I'm here to see will be flying high?
0:01:54 > 0:01:59Well, it is a two-bedroom bungalow. This is it.
0:01:59 > 0:02:04At a guiding price of £90,000 to £100,000, let's take a look inside.
0:02:04 > 0:02:08From the outside, it certainly gets off to a flying start.
0:02:08 > 0:02:12There's a decent-sized garden and the bungalow looks to be in excellent condition.
0:02:12 > 0:02:15It's obviously been very well looked after.
0:02:15 > 0:02:17You enter through a door at the side.
0:02:19 > 0:02:21Oh. Internal brickwork.
0:02:21 > 0:02:23Always nice to see!
0:02:23 > 0:02:28Through here, straight into the property and it looks to be in reasonable condition.
0:02:28 > 0:02:31Bit of magnolia paintwork. Bedroom off there.
0:02:31 > 0:02:36Corridor leading down to the kitchen and the bathroom, through into your main lounge.
0:02:36 > 0:02:39This is where it gets interesting, this is what sets it apart
0:02:39 > 0:02:44from your average common or garden bungalow - it's got another floor!
0:02:46 > 0:02:49Whoa! This is actually pretty nice.
0:02:49 > 0:02:52Not only have you got this room here, which is your second bedroom,
0:02:52 > 0:02:57big window, lots of light, but it's actually en suite as well.
0:02:57 > 0:02:59So all in all...
0:02:59 > 0:03:02it gives you a lot of very valuable space.
0:03:02 > 0:03:08Back downstairs and the house continues in the same remarkably good order.
0:03:08 > 0:03:15It's well decorated and in the main bathroom the suite and the flooring are both in fine fettle.
0:03:15 > 0:03:18The kitchen benefits from lots of light coming in at the back
0:03:18 > 0:03:21and the window could perhaps be enlarged to make it even brighter.
0:03:21 > 0:03:25The units all look relatively new.
0:03:25 > 0:03:28And there's another room off the hall.
0:03:28 > 0:03:33Depending on your requirements, this could be a bedroom or a dining room.
0:03:33 > 0:03:38At the back of the bungalow, the land's been paved over or covered in shingle.
0:03:38 > 0:03:40It all looks a bit of a mess.
0:03:40 > 0:03:43It would be much nicer if there was some grass and flowers.
0:03:43 > 0:03:45There's also this detached garage.
0:03:45 > 0:03:50That's got me thinking about the possibility of extending out to the side,
0:03:50 > 0:03:54with a garage at the front and a room at the back overlooking the garden next to the kitchen.
0:03:54 > 0:03:59Time to find out what a local estate agent makes of the bungalow.
0:03:59 > 0:04:02First of all I wanted to know more about the area.
0:04:04 > 0:04:07Tyldesley is a former coal mining town and a market town.
0:04:07 > 0:04:10It's situated about 15 miles from Manchester
0:04:10 > 0:04:12and it's a mainly residential area.
0:04:12 > 0:04:15Transport links to Tyldesley are quite good.
0:04:15 > 0:04:18Very good road network. Bus service is pretty good.
0:04:18 > 0:04:23It doesn't have its own rail station but there is a rail station nearby.
0:04:23 > 0:04:27Having seen lots of similar properties locally,
0:04:27 > 0:04:29what's his first impression of this bungalow
0:04:29 > 0:04:32that went to auction guided at £90,000 to £100,000?
0:04:33 > 0:04:37Generally speaking I think the property's in good condition.
0:04:37 > 0:04:41Some repair work is needed, some improvement work, but I think it has good potential.
0:04:41 > 0:04:46The repair works for this property I believe include work to the roof
0:04:46 > 0:04:50and most notably in this area there are problems with dampness under the floors
0:04:50 > 0:04:55so I'd recommend a damp and timber survey to establish any rot or decay.
0:04:55 > 0:04:57At the moment, it's a two bed.
0:04:57 > 0:05:03Apart from an extension, is there any other way that you can increase the accommodation here?
0:05:03 > 0:05:08In order to accommodate a third bedroom, I'd recommend moving some ground walls internally.
0:05:08 > 0:05:14We could reduce the size of the bathroom, which is probably too large for a house this size.
0:05:14 > 0:05:19Increase the size of the kitchen to create a dining area and use the dining room as a third bedroom.
0:05:19 > 0:05:25If the new owner added another bedroom, how much could the bungalow be worth after a total makeover?
0:05:25 > 0:05:29If it was refurbished with all the improvement work carried out,
0:05:29 > 0:05:34I believe that it could re-sell on the open market for approximately £125,000.
0:05:34 > 0:05:37For rental purposes in its present configuration,
0:05:37 > 0:05:41I would expect a rental in the region of £450 per calendar month.
0:05:41 > 0:05:46But if it could be increased to three bedrooms, that would increase to £550 per calendar month.
0:05:48 > 0:05:54Maybe not a case of the sky's the limit here, but there is potential nonetheless.
0:05:55 > 0:06:02So a nice enough little bungalow that you could pretty much move into or rent out exactly as it is.
0:06:02 > 0:06:07Potentially you could expand the upstairs, maybe put in a dormer window, subject to planning.
0:06:07 > 0:06:11I think it's a good investment opportunity. Let's see who spotted it at the auction.
0:06:11 > 0:06:15Lots 150. Vacant two-bedroom semi-detached bungalow.
0:06:15 > 0:06:19Somebody start at 50? 50 there, I'll take it.
0:06:19 > 0:06:21Can I see 60? 60 anywhere?
0:06:21 > 0:06:2460 here. 70, madam?
0:06:24 > 0:06:2680? 80, I have.
0:06:26 > 0:06:2890, madam? No?
0:06:28 > 0:06:31£80,000. Looking for 90.
0:06:31 > 0:06:3482, I'll take. 84, sir?
0:06:34 > 0:06:3784. I've got it. 86. No?
0:06:37 > 0:06:41At £84,000 then? I'll take 85.
0:06:41 > 0:06:4585, I have. 86, then. Can I say 86? Got it.
0:06:45 > 0:06:4787. 87 here. 88.
0:06:47 > 0:06:5189. 89, sir?
0:06:51 > 0:06:5490 then? Another 1,000?
0:06:54 > 0:06:5590, I have. 91?
0:06:58 > 0:07:0090,500. 91 off you?
0:07:00 > 0:07:05I have it. 91,500. We'll get there.
0:07:05 > 0:07:0892, sir? Another five? 92,500.
0:07:08 > 0:07:1193.
0:07:11 > 0:07:1593? Yes? 93,500.
0:07:15 > 0:07:1894. 94,500?
0:07:18 > 0:07:1995...
0:07:19 > 0:07:23No, at 94,500 with you, sir.
0:07:23 > 0:07:2694,500? Another 250?
0:07:26 > 0:07:28Got it. 95.
0:07:28 > 0:07:3195,250? No?
0:07:32 > 0:07:35First time at £95,000. Second time at 95...
0:07:35 > 0:07:39It's yours, sir.
0:07:39 > 0:07:46That final bid for the Manchester bungalow was made by local businessman James.
0:07:46 > 0:07:49He runs his own conservatory and window company.
0:07:49 > 0:07:53I met up with him at the property to see what he had planned for it.
0:07:53 > 0:07:58James, lovely to meet you. Congratulations. Why did you want to buy this place?
0:07:58 > 0:08:00It's an investment.
0:08:00 > 0:08:07I bought a few properties which I'm hoping will be an investment for my grandchildren in the future.
0:08:07 > 0:08:10- You bought them specifically for your grandchildren?- Yes.
0:08:10 > 0:08:13- Great. Tell me about them. - I've got three grandsons.
0:08:13 > 0:08:16One's three-and-a-half, one's five and one's eight.
0:08:16 > 0:08:19Jamie, Aiden and Thomas.
0:08:19 > 0:08:27It's kind of a legacy I'm hoping to leave them with house prices reducing and interest rates being low.
0:08:27 > 0:08:33It's a good time to set something up that will be a good legacy for them later on in life.
0:08:33 > 0:08:36So I bought three this time at auction.
0:08:36 > 0:08:38It was quite an adventure.
0:08:38 > 0:08:41Fantastic. Do they know you've bought them a house?
0:08:41 > 0:08:42No.
0:08:42 > 0:08:47When are you going to give it to them? Are you going to put it in a trust when they're 18 or 21?
0:08:47 > 0:08:48I'm not sure how it'll work.
0:08:48 > 0:08:53I mean, over time I might do the houses up, sell them and buy other houses.
0:08:53 > 0:08:56It just depends how my life goes.
0:08:56 > 0:08:58So why this house then?
0:08:58 > 0:09:04Well, the three properties I've bought, this being one of them, is local to the area.
0:09:04 > 0:09:08My business obviously is in the area.
0:09:08 > 0:09:12I did expect to just buy probably two terraced houses
0:09:12 > 0:09:18and maybe like a detached or a semi-detached as a bonus house.
0:09:18 > 0:09:22But I ended up getting this semi-bungalow detached house
0:09:22 > 0:09:25and the terraced house, so I did quite well out of that.
0:09:25 > 0:09:26Got more than I expected.
0:09:26 > 0:09:29How much did you spend on the day in total?
0:09:29 > 0:09:33Just under £250,000.
0:09:33 > 0:09:36So in total James has paid nearly £250,000
0:09:36 > 0:09:39for three houses for his three grandsons.
0:09:39 > 0:09:42£95,000 went on this bungalow.
0:09:42 > 0:09:46# Granddad, granddad.
0:09:46 > 0:09:48# You're lovely... #
0:09:48 > 0:09:50Tell me what you're going to do to this place.
0:09:50 > 0:09:52There's a number of things I'm looking at.
0:09:52 > 0:09:59I don't like the idea of the stairs being in this room, it's a very big room and it's kind of wasted space.
0:09:59 > 0:10:06There's a lovely hallway behind us that has a closet room that's just very big and wasted space.
0:10:06 > 0:10:11So ideally I'd like to put a two-tier staircase going in there
0:10:11 > 0:10:14up to the landing upstairs rather than going up here.
0:10:14 > 0:10:21And put a dormer on the front of it, change that into two bedrooms upstairs with a bathroom.
0:10:21 > 0:10:23Possibly put a conservatory on it.
0:10:23 > 0:10:27Maybe going either from the dining room or from the kitchen.
0:10:27 > 0:10:30Obviously with the dormer on, that will create three bedrooms,
0:10:30 > 0:10:34whether I can get planning permission, there's things I've got to look in to.
0:10:34 > 0:10:38But next door has got dormers so I can't see that being a problem.
0:10:38 > 0:10:43And obviously change all the windows in the house and spruce it up.
0:10:43 > 0:10:47Well, as he runs a windows and conservatory company, you'd expect that.
0:10:47 > 0:10:53James has been in business for 28 years and works with a small specialist team.
0:10:53 > 0:10:59His main fitter's been with him since the start and his son now works for the company, too.
0:10:59 > 0:11:04James admits to be a workaholic, putting in 14 hours a day,
0:11:04 > 0:11:07but does he really have to do much to this bungalow?
0:11:09 > 0:11:14I mean you could theoretically, I hate to say it, just move in as it is or rent it out as it is.
0:11:14 > 0:11:17Have you weighed it up? How much more are you going to get in rent?
0:11:17 > 0:11:23As a businessman, this is probably what I should be doing, but I like things being done in a quality way.
0:11:23 > 0:11:27I'd sooner spend a bit of money and work on it and have it...
0:11:27 > 0:11:32I tend to look at properties as if I'm going to live in them and what's the best I can do with them.
0:11:32 > 0:11:37Short term it's not going to make me a lot of money but long term it will,
0:11:37 > 0:11:41which as I say my grandsons can benefit from.
0:11:41 > 0:11:45Any idea how long it's going to take to do the work and how much it's going to cost?
0:11:45 > 0:11:47No idea how much it's going to cost!
0:11:47 > 0:11:54But I'm not really bothered, I have my own builders and joiners and obviously I'm a joiner myself
0:11:54 > 0:11:58so I will do a lot of the work myself, I'll have my own lads come in and work on it.
0:11:58 > 0:12:04I've not actually worked out what it'll cost, I'm not bothered, I'll do what needs to be done.
0:12:04 > 0:12:07Congratulations, good luck and can I have a go in your Ferrari, please?
0:12:07 > 0:12:09Certainly can!
0:12:09 > 0:12:12# Granddad. Granddad.
0:12:12 > 0:12:14# You're lovely... #
0:12:14 > 0:12:18Well, what a lovely thing James is doing for his grandchildren,
0:12:18 > 0:12:21creating as he says a fantastic legacy. Budget?
0:12:21 > 0:12:28What budget. Fantastic! The only thing is planning permission and whether or not he gets it.
0:12:28 > 0:12:29You can find out later in the show.
0:12:33 > 0:12:35Welcome to the Kent coast.
0:12:35 > 0:12:38Today I'm in a place called Walmer in Deal,
0:12:38 > 0:12:42just seven miles from Dover and a desirable place to live.
0:12:42 > 0:12:44It was also popular with Henry VIII,
0:12:44 > 0:12:51who in 1539 commissioned a whole series of coastal artillery forts, including Walmer Castle.
0:12:51 > 0:12:56It took just 18 months to build three castles across the Downs.
0:12:56 > 0:12:59Some people struggle to have an extension up in that time,
0:12:59 > 0:13:02so whilst I'm sure his budget ran away with him,
0:13:02 > 0:13:06building three castles in under two years is certainly impressive.
0:13:11 > 0:13:14The coast is just as impressive, with a lovely pebbled beach
0:13:14 > 0:13:18where you could while away the hours and I would if I could, but I can't.
0:13:18 > 0:13:20I have places to go.
0:13:20 > 0:13:24The auction lot I'm here to see is on Liverpool Road.
0:13:24 > 0:13:31It's just one road away from the seafront and next to this beautiful park. So, impressive location.
0:13:31 > 0:13:33What's the property like?
0:13:33 > 0:13:37Mmm. Deeply unimpressive, I'm afraid.
0:13:37 > 0:13:40# What's that in the shadows?
0:13:40 > 0:13:42# What's that in the shadows? #
0:13:42 > 0:13:46The bungalow's being kept in the shadows by overhanging trees,
0:13:46 > 0:13:49but with some careful pruning, that can be sorted.
0:13:49 > 0:13:56Let's hope that at that guide price of £180,000 to £190,000, it doesn't need much work inside either.
0:13:58 > 0:14:01Ha, ha! Look at this. Marshmallow pink.
0:14:01 > 0:14:05Gosh, what a paint job. Windows boarded up everywhere.
0:14:05 > 0:14:09You've got some fire-damage down there.
0:14:09 > 0:14:11We've got a very small reception room to the left here.
0:14:11 > 0:14:15It's got that sort of bungalow feeling. Not really high ceilings.
0:14:15 > 0:14:21You've got some polystyrene tiles up there which again are an absolute nightmare to get off.
0:14:21 > 0:14:23And another pink room!
0:14:23 > 0:14:25But I'm glad to say there's no woodchip wallpaper.
0:14:25 > 0:14:28At least this will be fairly easy to paint over.
0:14:28 > 0:14:30You've got a little bit of character in here.
0:14:30 > 0:14:33Nice doors, again they're pink!
0:14:33 > 0:14:37Really nice windows over there which once they've been refurbished will look quite pretty
0:14:37 > 0:14:40and if you manage to get a new surround for this fireplace,
0:14:40 > 0:14:48if you actually get rid of some of this dusty, dirty cobweb yukkiness, they are really nice tiles.
0:14:48 > 0:14:51Once you've renovated this, this will look quite nice
0:14:51 > 0:14:56so overall, I'd be quite excited to see what this house would look like once refurbished.
0:15:00 > 0:15:05The living room with its small boarded up conservatory also has potential.
0:15:05 > 0:15:07It doesn't look as if it needs a lot of work done to it.
0:15:09 > 0:15:15The kitchen is a good size, but the units really need replacing.
0:15:15 > 0:15:18There'll be a great view of the park when those boards are removed.
0:15:20 > 0:15:25The bathroom is downstairs and needs a new suite and some fresh paint.
0:15:25 > 0:15:27But at least it's not pink!
0:15:27 > 0:15:33Upstairs, it looks as though the two bedrooms have been built into the loft...
0:15:35 > 0:15:38..leaving lots of wasted space up here.
0:15:40 > 0:15:44There's also a strange connecting cupboard.
0:15:44 > 0:15:48A bit of a redesign required here, I'd say.
0:15:48 > 0:15:51And now for something I haven't told you yet.
0:15:51 > 0:15:57This property comes with planning permission and the plans are quite extensive.
0:15:57 > 0:16:02These are the plans. You've got the existing and these are proposed.
0:16:02 > 0:16:07Now you can see, this really does turn this from a chalet bungalow
0:16:07 > 0:16:10into a substantial house with three good-sized bedrooms
0:16:10 > 0:16:13and a bathroom upstairs, which is all good.
0:16:13 > 0:16:16That would then mean this house would come all the way out here
0:16:16 > 0:16:19and eat into this chunk of garden space.
0:16:19 > 0:16:22You'd have to flatten the garage but that is nothing to lose sleep over.
0:16:22 > 0:16:25What does concern me is how much this development
0:16:25 > 0:16:29is going to cost because you can never ever lose sight of the end value.
0:16:29 > 0:16:34Don't forget the guide on this was £180,000 to £190,000.
0:16:34 > 0:16:37It's going to cost at least £100,000 to develop this
0:16:37 > 0:16:43so a total spend of around £300,000, maybe even more.
0:16:43 > 0:16:46Now I do know the ceiling price for a house of this size
0:16:46 > 0:16:50in this location is around the £320,000 mark.
0:16:50 > 0:16:54So for me the margin just isn't here
0:16:54 > 0:16:59for all the work required to develop this house.
0:16:59 > 0:17:04You may want to do the work anyway in the hope the market picks up, but that could be a dangerous game.
0:17:04 > 0:17:06I asked a local estate agent
0:17:06 > 0:17:09what he thought of the plans and this bungalow.
0:17:12 > 0:17:16In my opinion, it does need quite an extensive refurbishment.
0:17:16 > 0:17:20Done well and with the money spent, you could have a nice end result.
0:17:20 > 0:17:23I've looked at the plans and there is room for an extension.
0:17:23 > 0:17:27You could enhance it more, but it would mean reapplying for the plans
0:17:27 > 0:17:28and possibly spending more money.
0:17:28 > 0:17:35If the new owner decided not to add the planned extension to the bungalow and just tidied it up,
0:17:35 > 0:17:39- would it be worth renting it out? - Rental value on properties like this...
0:17:39 > 0:17:41There's quite a demand in the rental market.
0:17:41 > 0:17:45You'd probably get £850 to £1,000 per month.
0:17:45 > 0:17:50The guide price was between 180 and 190,000.
0:17:50 > 0:17:54But once renovated, what could the resale value be?
0:17:54 > 0:17:57Without the extensions and with a high-end finish,
0:17:57 > 0:18:01you could expect to market this with an asking price of £295,000.
0:18:01 > 0:18:06With the proposed extension, you could probably sell on for the early 300,000s. Maybe 315, 320.
0:18:06 > 0:18:10Not a lot different to what it could sell on with a good renovation.
0:18:10 > 0:18:14It's definitely got character once you've blitzed this pink decor.
0:18:14 > 0:18:17But an extension? I don't think so.
0:18:17 > 0:18:20However, I would consider a nice conservatory.
0:18:20 > 0:18:25That's a good way of adding the extra square footage that I think this bungalow needs.
0:18:25 > 0:18:28Let's see who wanted this as we go to auction.
0:18:30 > 0:18:35Lot 92, which is the detached bungalow. Absolutely super location.
0:18:35 > 0:18:37£180,000 to get me on the way.
0:18:37 > 0:18:41175. 175 I've got at the back.
0:18:41 > 0:18:44175, 175, now 180.
0:18:44 > 0:18:47178, I don't mind if you're shy.
0:18:47 > 0:18:50178 I've got.
0:18:50 > 0:18:55Now 180. At £180,000 are we all done?
0:18:55 > 0:19:01182 in a fresh place. 182 and four.
0:19:01 > 0:19:08184. 184 and six. 186 and eight?
0:19:08 > 0:19:11188. 188 I'm looking for.
0:19:11 > 0:19:15Are we all done at 186 then in the room? It's going to sell.
0:19:15 > 0:19:18At 186 sitting down on the left-hand side for the first time.
0:19:18 > 0:19:23At £186,000 for the second.
0:19:23 > 0:19:30Third and final time. If you're done at £186,000. It's going to be sold.
0:19:30 > 0:19:33Well done. Yours at 186. 8834.
0:19:33 > 0:19:38The successful bid of 186,000 was made by Wendy and Graham.
0:19:38 > 0:19:43They're not new to property development and have sold two houses which they renovated fully.
0:19:43 > 0:19:47That's what they hope to do with this purchase.
0:19:48 > 0:19:52I met up with Wendy, who arrived with her granddaughter Emmy.
0:19:52 > 0:19:55- Wendy, congratulations. - Nice to meet you.
0:19:55 > 0:20:00Thank you for coming along today. I want to know the story and why you wanted to bid for this.
0:20:00 > 0:20:02We actually put an offer in for it.
0:20:02 > 0:20:04A sealed bid to two years ago.
0:20:04 > 0:20:08- For how much?- 251,000.- Wow.- Yeah.
0:20:10 > 0:20:13We weren't accepted, somebody put in a higher offer.
0:20:13 > 0:20:16They then subsequently put in planning permission
0:20:16 > 0:20:19to practically double the size of the building.
0:20:19 > 0:20:22Because of the way the prices have gone in the area,
0:20:22 > 0:20:25they obviously decided they could not afford to go through with it
0:20:25 > 0:20:28and it came up for auction again this year.
0:20:28 > 0:20:31So you've ended up getting a property with planning permission
0:20:31 > 0:20:32for a whole lot less
0:20:32 > 0:20:34- than you initially probably would have bought it for.- Yeah.
0:20:34 > 0:20:38So it appears the economic downturn has some upsides.
0:20:38 > 0:20:41Will they take advantage of those plans?
0:20:41 > 0:20:44We looked at the plans in detail
0:20:44 > 0:20:47and we also spoke to the Auctioneers about it.
0:20:47 > 0:20:50We did quite a bit of research before we went to the auction.
0:20:50 > 0:20:54The costings came out at about 120,000.
0:20:54 > 0:20:57It literally took up practically the whole plot.
0:20:57 > 0:20:58You were knocking down the garage.
0:20:58 > 0:21:00And the whole of the front garden,
0:21:00 > 0:21:02which is actually quite pretty and secluded,
0:21:02 > 0:21:05would have then been parking space for all the cars.
0:21:05 > 0:21:06I think she's absolutely right.
0:21:06 > 0:21:09It doesn't seem worthwhile spending all that money
0:21:09 > 0:21:11to follow the old plans.
0:21:11 > 0:21:13But the bungalow does need renovating
0:21:13 > 0:21:16and Wendy has exciting plans of her own.
0:21:16 > 0:21:19She's going to build a large conservatory across the back.
0:21:19 > 0:21:22Talk me through these. You've got a nice-looking conservatory here.
0:21:22 > 0:21:24Yes. I'm going to take the conservatory out.
0:21:24 > 0:21:27There's an existing conservatory in the lounge which is too old now.
0:21:27 > 0:21:31That's going to be knocked out and I'll knock out, there's two pantries here,
0:21:31 > 0:21:35which again will be knocked out, and a porch.
0:21:35 > 0:21:39And the lounge will go through to a second lounge,
0:21:39 > 0:21:42and I think it's seven metres by four metres,
0:21:42 > 0:21:45and across to this side the kitchen will go through
0:21:45 > 0:21:47with sliding doors to a dining area.
0:21:47 > 0:21:48That is going to look fantastic.
0:21:48 > 0:21:51- It really going to open the back up, isn't it?- It is. Yes.
0:21:51 > 0:21:53- It's really sunny there.- I love it.
0:21:53 > 0:21:57Now what have we got here? Nice-looking kitchen I have to say.
0:21:57 > 0:21:58- Very neutral.- I've gone for cream.
0:21:58 > 0:22:02You can't see that well in the pictures but it has got some slats.
0:22:02 > 0:22:04Country farmhouse type of kitchen with a range.
0:22:04 > 0:22:08And trying to keep it neutral depending on the kind of customer
0:22:08 > 0:22:10that's buying, and trying to use the lodge,
0:22:10 > 0:22:13the country cottage type of it feel to it.
0:22:13 > 0:22:18The bathroom will also be tidied up but what about upstairs?
0:22:18 > 0:22:20We are going to be putting a dormer window in
0:22:20 > 0:22:22in one of the bedrooms upstairs
0:22:22 > 0:22:27to add quite a bit of extra space, and take a chimney out.
0:22:27 > 0:22:31Sounds good. How long will this renovation take?
0:22:31 > 0:22:34Planning on three months and we've got everybody ready to go.
0:22:34 > 0:22:37- So you've got all your builders ready?- Yes.
0:22:37 > 0:22:38- You've got all your furniture ready? - Yes.
0:22:38 > 0:22:42- Are you going to dress this place? - Yes, definitely.- Are you, what, sofa?
0:22:42 > 0:22:46Sofas, beds, pictures, mirrors, the whole lot.
0:22:46 > 0:22:47If all this is done
0:22:47 > 0:22:51this bungalow should be much brighter and more spacious.
0:22:51 > 0:22:58It cost 186,000 at auction so what's the intended budget here?
0:22:58 > 0:23:01The development is 40,000, but we may now...
0:23:01 > 0:23:05We've just had costings for the roof which is about £6,000,
0:23:05 > 0:23:09so we may do the roof as well, which I think we probably will do.
0:23:09 > 0:23:12So it will probably take it up to about 47,000.
0:23:12 > 0:23:13That includes all our expenses.
0:23:13 > 0:23:16You really have thought about this, haven't you?
0:23:16 > 0:23:18You know exactly what you're doing. How many lists have you made?
0:23:18 > 0:23:20I always make hundreds of lists.
0:23:20 > 0:23:24Everything has to be priced, listed, it's done on a schedule.
0:23:24 > 0:23:26My schedules are done. Everything.
0:23:26 > 0:23:28- Wendy it's been lovely meeting you today.- And you.
0:23:28 > 0:23:31- Good luck with this project. Well done.- Thanks.
0:23:31 > 0:23:36Wendy and her partner Graham played a waiting game that paid off.
0:23:36 > 0:23:39They saved themselves 65,000.
0:23:39 > 0:23:41Wendy is obviously delighted.
0:23:41 > 0:23:44A £47,000 budget should transform that bungalow
0:23:44 > 0:23:46and with their combined skills,
0:23:46 > 0:23:49well, I hope it's all-singing, all-dancing in three to four months.
0:23:49 > 0:23:54The question is, will they sell it in the current market?
0:23:54 > 0:23:57You can find out later on in the show.
0:23:57 > 0:24:01Coming up, this Cornwall property is going all-out for my sympathy vote.
0:24:01 > 0:24:04The whole house it feels damp, it feels unloved,
0:24:04 > 0:24:07it feels like it needs a bit of sorting out.
0:24:07 > 0:24:10In Kent it seems that atrocious weather
0:24:10 > 0:24:13wasn't going to hamper Wendy's plans.
0:24:13 > 0:24:15We had industrial heaters in here
0:24:15 > 0:24:19and anything we could think of to keep the place warm.
0:24:19 > 0:24:24But first, back in Manchester, there's no time for slacking.
0:24:24 > 0:24:27I ended up doing it all myself.
0:24:29 > 0:24:32Time now to return to Tyldesley,
0:24:32 > 0:24:35in Greater Manchester. Earlier in the programme, local businessman,
0:24:35 > 0:24:39James, had paid £95,000 for this two-bed semi-detached bungalow.
0:24:39 > 0:24:42It was one of three he'd bought
0:24:42 > 0:24:45as a long-term investment for his three grandchildren.
0:24:45 > 0:24:50He was going to refurbish it totally and rent it out.
0:24:50 > 0:24:52# Granddad, Granddad, we love you... #
0:24:55 > 0:24:59Well, a year has passed and we met up again with James at the property
0:24:59 > 0:25:03to see the superb finish he's achieved.
0:25:03 > 0:25:05The first clue to that starts outside
0:25:05 > 0:25:11where a new dormer window has been installed and the driveway relayed.
0:25:11 > 0:25:14Once you get inside you instantly notice
0:25:14 > 0:25:16the excellent decoration in the hallway
0:25:16 > 0:25:18where the stairs have been moved.
0:25:18 > 0:25:22The main front living room is a real suntrap
0:25:22 > 0:25:27with plenty of light flooding in through the new bay windows.
0:25:27 > 0:25:29It's in the kitchen at the back of the bungalow
0:25:29 > 0:25:31where the refurbishment really starts to impress.
0:25:33 > 0:25:38As James's own company specialises in conservatories and double glazing
0:25:38 > 0:25:42it's no surprise where the initial work began.
0:25:42 > 0:25:47One of the first things we did was put the conservatory on
0:25:47 > 0:25:49and by making the bathroom smaller
0:25:49 > 0:25:51that allowed us to make the kitchen bigger.
0:25:51 > 0:25:54It's given us a nice large kitchen
0:25:54 > 0:25:58that we fitted out properly and have the opening
0:25:58 > 0:26:00going through into the conservatory
0:26:00 > 0:26:06which can be used as a morning room, breakfast room or even dining room.
0:26:06 > 0:26:09In order to make the most of the space in the bungalow,
0:26:09 > 0:26:12James knew the first job was to relocate the stairs.
0:26:12 > 0:26:15That required a change in almost every room
0:26:15 > 0:26:17but there was a master plan.
0:26:20 > 0:26:23Well as you can see down here, what we've done
0:26:23 > 0:26:25is we've put the stairs in the hall
0:26:25 > 0:26:27and taken them from the living room
0:26:27 > 0:26:30which was obviously taking the space off the dining room.
0:26:30 > 0:26:31We've achieved that
0:26:31 > 0:26:36by making the bathroom that was downstairs here, much smaller.
0:26:36 > 0:26:38It was way too big for a downstairs bathroom.
0:26:38 > 0:26:44There was also a cloakroom which made this whole area corridor.
0:26:44 > 0:26:49So by taking the cloakroom out we've opened up the whole hallway
0:26:49 > 0:26:51with the gallery staircase now, which is absolutely beautiful,
0:26:51 > 0:26:53when you come in.
0:26:57 > 0:26:59The staircase is a real feature.
0:26:59 > 0:27:01Upstairs in the bungalow
0:27:01 > 0:27:04the construction problems were just as challenging.
0:27:06 > 0:27:10As you'll recall when you first came this was a room upstairs
0:27:10 > 0:27:12with an en suite bathroom.
0:27:12 > 0:27:14Unfortunately the way they'd built it
0:27:14 > 0:27:20they'd just put floor on top of the existing ceiling so it wasn't usable.
0:27:20 > 0:27:22All the ceilings were collapsing.
0:27:22 > 0:27:26So what we've done, we've redone the whole thing.
0:27:26 > 0:27:29We've put new floorboards in, new ceilings.
0:27:29 > 0:27:33Obviously we've built the dormers and made proper rooms
0:27:33 > 0:27:36and more importantly a large bathroom that's quite elegant.
0:27:36 > 0:27:43But for me it's the gallery staircase that just makes the house lovely.
0:27:43 > 0:27:46It's the change to the stairs that has given him
0:27:46 > 0:27:48the freedom to change the upper floor layout radically.
0:27:48 > 0:27:53Apart from the dormer window the roof has also been retiled.
0:27:53 > 0:27:57A lot of the work was done by fitters from James's company
0:27:57 > 0:27:59but how hands-on has he been himself?
0:28:01 > 0:28:05Well I was pretty much involved in everything.
0:28:05 > 0:28:09From the designing point of view or from getting materials.
0:28:09 > 0:28:12The biggest problem we had was the block paving.
0:28:12 > 0:28:17I'd arranged to do that as an idea to keep the builders busy
0:28:17 > 0:28:22but they had difficulty doing it and I ended up doing it all myself
0:28:22 > 0:28:26which took about two weeks because every brick had to be cemented
0:28:26 > 0:28:29then it had to be hand laid.
0:28:29 > 0:28:34James paid £95,000 for the bungalow and had no budget in mind.
0:28:34 > 0:28:36He'd pay whatever was necessary.
0:28:36 > 0:28:40So does he now know how much he's spent?
0:28:40 > 0:28:43I would say it's probably cost somewhere in the region of 30,000
0:28:43 > 0:28:46for the work we've done at the moment.
0:28:51 > 0:28:55Time to see how two local estate agents rate this refurbishment.
0:28:57 > 0:28:59My initial thoughts on the property
0:28:59 > 0:29:02are that it's been finished to a very high standard.
0:29:02 > 0:29:03It's a credit to the current owners
0:29:03 > 0:29:05and I particularly like the fixtures and fittings.
0:29:05 > 0:29:07I think the property has been transformed.
0:29:07 > 0:29:10I'm very impressed with the hall and landing.
0:29:10 > 0:29:12It gives a light, spacious, airy feel to the property.
0:29:12 > 0:29:15The quality of fittings to the kitchen and bathroom
0:29:15 > 0:29:17are also very nice features.
0:29:17 > 0:29:21The addition of the dormer is an added benefit to the property.
0:29:21 > 0:29:26Gives it an extra dimension on other properties in the area.
0:29:26 > 0:29:29I suppose the only comment I would make is that perhaps some buyers
0:29:29 > 0:29:31would prefer still to have a garage.
0:29:31 > 0:29:34Other than that I think he's done a very good job.
0:29:34 > 0:29:37James does plan to rent it out for a few years
0:29:37 > 0:29:39but how much could the bungalow achieve now
0:29:39 > 0:29:41if it were put up for sale?
0:29:41 > 0:29:47Remember, he paid £95,000 at the auction and has spent £30,000
0:29:47 > 0:29:50making a total of 125,000.
0:29:50 > 0:29:53If we were to place the property on the market in current conditions
0:29:53 > 0:29:55I would anticipate he would achieve a sale
0:29:55 > 0:29:58in the region of £145,000 to £150,000.
0:29:58 > 0:30:01I would value this property at £145,000.
0:30:01 > 0:30:05So, after a year, £20,000 gross profit
0:30:05 > 0:30:08before the usual selling expenses.
0:30:08 > 0:30:11Is that the level of return James had anticipated?
0:30:11 > 0:30:15I'd say that's lower than I would have expected.
0:30:15 > 0:30:18I would have thought more around 170.
0:30:18 > 0:30:21But I've no intention of selling anyway.
0:30:21 > 0:30:25How much rental income could the bungalow generate?
0:30:25 > 0:30:27I would expect, in the current market,
0:30:27 > 0:30:30a rental of between £500 and £600 per calendar month.
0:30:30 > 0:30:32The rental market in this area is very strong.
0:30:32 > 0:30:34I'm sure this property would rent very quickly.
0:30:34 > 0:30:39A price of around £625 per month.
0:30:39 > 0:30:44So, are those rental figures in line with the income James had forecast?
0:30:44 > 0:30:46No. Again I would say that's low.
0:30:46 > 0:30:50We've already got it up for lease for 790.
0:30:50 > 0:30:54We would expect between 700 and 800.
0:30:54 > 0:30:57This is a lovely bungalow and I suspect plenty of tenants
0:30:57 > 0:30:59would be tempted to pay a premium to live here.
0:30:59 > 0:31:03In fact, since we left, James has rented it out
0:31:03 > 0:31:06for an impressive £750 a month.
0:31:06 > 0:31:09But Meanwhile this bungalow and two other properties
0:31:09 > 0:31:12are long-term investments for his grandchildren.
0:31:12 > 0:31:16Is he tempted to go back to an auction for another purchase?
0:31:16 > 0:31:18I've got two that I've done before this.
0:31:18 > 0:31:23This one is now ready for lease and I've got another four that I've got to do at the moment.
0:31:23 > 0:31:27So I'm going to be kept quite busy doing these houses up.
0:31:29 > 0:31:34This is Bodmin in Cornwall which was the centre of the Cornish rebellions
0:31:34 > 0:31:37in the 15th and 16th centuries.
0:31:37 > 0:31:42It's a bit more peaceful these days and the only uprising I'm hoping
0:31:42 > 0:31:45to see at this property is in its value.
0:31:54 > 0:31:57Well here in Bodmin there was the opportunity to get not one
0:31:57 > 0:32:00but two almost identical properties
0:32:00 > 0:32:05for the extremely attractive guide price of 120,000 to 140,000 quid.
0:32:05 > 0:32:10Which one shall we check out first? Eeney, meenie, miney, mo.
0:32:10 > 0:32:14And so, property numero uno.
0:32:14 > 0:32:17That's interesting. No electricity meter.
0:32:17 > 0:32:20But that gives a clear indication that the likelihood is that
0:32:20 > 0:32:22this property hasn't been used for a while.
0:32:22 > 0:32:25Actually, you walk through the door and it's fairly apparent.
0:32:25 > 0:32:28We've got wallpaper coming off the walls.
0:32:28 > 0:32:30Just a feeling that this place
0:32:30 > 0:32:34hasn't been used for goodness knows how many years.
0:32:34 > 0:32:38But an interesting kind of space if you can just see through the mess.
0:32:38 > 0:32:41Front living room here. Interesting flagstone flooring.
0:32:41 > 0:32:43The whole house feels damp,
0:32:43 > 0:32:47it feels unloved, it feels like it needs a bit of sorting out.
0:32:47 > 0:32:51But a few nice little features. That's interesting.
0:32:51 > 0:32:52A little tile.
0:32:52 > 0:32:56Well there you go. You've heard me talk about Minton floors.
0:32:56 > 0:33:00I've never actually seen that printed on the back of a tile before but look,
0:33:00 > 0:33:02Minton's China works in Stoke on Trent.
0:33:02 > 0:33:04That's where the Minton tiles came from.
0:33:04 > 0:33:07Fab. Let's see what else there is.
0:33:07 > 0:33:11The rest of the ground floor is just as bad.
0:33:11 > 0:33:14It's more like a building site than a home.
0:33:16 > 0:33:20Well it doesn't get any better as you head back into the house, in some ways it gets worse.
0:33:20 > 0:33:22Maybe we can turn that to our advantage
0:33:22 > 0:33:24because when you're looking around houses priced for an auction
0:33:24 > 0:33:26and you come across places like this,
0:33:26 > 0:33:30a lot of people would be put off because they won't be able to see the potential.
0:33:30 > 0:33:34If you've got a bit of imagination, you can see what you could do with this,
0:33:34 > 0:33:36maybe you could steal yourself a bargain.
0:33:36 > 0:33:37Walls absolutely enormously thick.
0:33:37 > 0:33:39Come through that room there,
0:33:39 > 0:33:41kind of like a rear sitting room, into a kitchen.
0:33:41 > 0:33:45Well it's a sort of kitchen, it's a right old disaster. I don't know what's going on with this roof.
0:33:45 > 0:33:49I think you need to get a structural surveyor and an architect in here
0:33:49 > 0:33:50before you do anything.
0:33:50 > 0:33:54Actually, make that an architect, a plasterer, an electrician
0:33:54 > 0:33:55AND a plumber.
0:34:01 > 0:34:04Upstairs is not as bad. The floors are a little uneven
0:34:04 > 0:34:06and it all needs decorating
0:34:06 > 0:34:09but these two bedrooms are a decent size.
0:34:09 > 0:34:11One redeeming feature is the garden.
0:34:11 > 0:34:15It's nice and big if a little overgrown.
0:34:21 > 0:34:25But of course this side of the cottage is only half the story.
0:34:25 > 0:34:28Let's see if it gets any better next door.
0:34:31 > 0:34:35Thankfully, things on this side are a lot more positive.
0:34:35 > 0:34:37The decor is still dated but it looks like someone
0:34:37 > 0:34:41has looked after this much better than its counterpart next door.
0:34:41 > 0:34:45And that's not the only difference between the two cottages.
0:34:45 > 0:34:48There's an extra bedroom in this one.
0:34:48 > 0:34:53Well, upstairs the layout is extremely peculiar.
0:34:53 > 0:34:57You've got three bedrooms but two of them sort of are en suite.
0:34:57 > 0:34:58You've got this bathroom here.
0:34:58 > 0:35:03You've got this bedroom here, and you've got another bedroom there,
0:35:03 > 0:35:05which you have two entrances to,
0:35:05 > 0:35:07so you have to pass through it to get to the others.
0:35:07 > 0:35:11Then you've got this room here which also has access to this bathroom
0:35:11 > 0:35:16through this kind of like strange area here. It's all very odd.
0:35:18 > 0:35:22I do wonder why you would build a bedroom in the corner
0:35:22 > 0:35:25with two doors to other bedrooms.
0:35:25 > 0:35:29But at least on this side of the cottage there's that upstairs loo.
0:35:29 > 0:35:33The walls that are here can always come down again
0:35:33 > 0:35:35to make a bigger second bedroom.
0:35:37 > 0:35:40I asked the auctioneer who sold this pair of properties
0:35:40 > 0:35:43to fill me in on their history.
0:35:43 > 0:35:45The story with the property
0:35:45 > 0:35:48is there was a little lady who had a great big house
0:35:48 > 0:35:50and she was a bit lonely and wanted some company
0:35:50 > 0:35:52so she though, "Ah, company and a bit of rent,
0:35:52 > 0:35:54"I'll convert the other half of my house,
0:35:54 > 0:35:57"I'll live in one half and have a tenant in the other."
0:35:57 > 0:36:01She did all that and then suddenly realised that actually she liked living alone
0:36:01 > 0:36:02so she booted the tenant out,
0:36:02 > 0:36:04locked this up and just left it,
0:36:04 > 0:36:07and lived in the other half and has now had to move out.
0:36:07 > 0:36:12I don't see any economic value in taking it back to one great big house
0:36:12 > 0:36:14because it's more valuable as two.
0:36:14 > 0:36:16Next door would be a big one bedder
0:36:16 > 0:36:19because you're going to struggle to get a bathroom upstairs.
0:36:19 > 0:36:23And this one would be quite a big two bedder.
0:36:23 > 0:36:25The two houses together
0:36:25 > 0:36:29would add up to about £210,000, £220,000,
0:36:29 > 0:36:30something like that.
0:36:30 > 0:36:35A house on its own would be 140,000 perhaps.
0:36:35 > 0:36:37What are the best options here?
0:36:37 > 0:36:38To sell or rent?
0:36:38 > 0:36:41And as one or two properties?
0:36:41 > 0:36:46The rental value as one great big house would be about
0:36:46 > 0:36:49£500 per calendar month, maybe 550.
0:36:49 > 0:36:53Whereas the rental value for the one and the two bedroom cottages
0:36:53 > 0:36:56are going to be the better part of 500 themselves,
0:36:56 > 0:36:59so it makes absolute sense to turn it into two.
0:37:01 > 0:37:04So, both properties requiring quite a lot of work
0:37:04 > 0:37:06to get them up to standard.
0:37:06 > 0:37:08That one slightly more so than this one.
0:37:08 > 0:37:11The good news is if you get a team of builders here
0:37:11 > 0:37:13they could work on both properties so there are economies
0:37:13 > 0:37:14from doing the restoration that way.
0:37:14 > 0:37:18Who went for this interesting opportunity at the auction?
0:37:18 > 0:37:22We are into Bodmin. So it's a pair of terraced cottages.
0:37:22 > 0:37:25Garden out the back.
0:37:25 > 0:37:28100 straight in. 100.
0:37:28 > 0:37:30100.
0:37:30 > 0:37:3190.
0:37:31 > 0:37:3490, Thank you. 92, 92, 94.
0:37:34 > 0:37:3994, 96. At 96.
0:37:40 > 0:37:42That was short and sweet.
0:37:42 > 0:37:4697. 98.
0:37:48 > 0:37:53At 98. 99. At 99.
0:37:53 > 0:37:55100 I'll do.
0:37:55 > 0:37:57One is in the front row.
0:37:57 > 0:37:59100 I got. At 1 1/2.
0:37:59 > 0:38:01One half I've got.
0:38:03 > 0:38:06101. 101.
0:38:06 > 0:38:09At 101 once, at 101 twice,
0:38:09 > 0:38:16at 101, are you sure? And I'm looking, it will be sold.
0:38:16 > 0:38:21Here it is. At 101 all done and out.
0:38:22 > 0:38:26The top bid came from local farmer, Colin.
0:38:26 > 0:38:32That £101,000 was a massive £19,000 below the bottom guide price.
0:38:32 > 0:38:36Colin's son, Mike, will work with his dad on the renovations
0:38:36 > 0:38:40so I caught up with him to find out more.
0:38:40 > 0:38:42Mike, nice to meet you. Congratulations.
0:38:42 > 0:38:44Thank you very much.
0:38:44 > 0:38:45Tell me what's going on there,
0:38:45 > 0:38:47it wasn't you at the auction, was it?
0:38:47 > 0:38:51No, it was in fact Dad at the auction. I was at home working.
0:38:51 > 0:38:56He's the man with the money so he had to go and put his hand up and buy the property.
0:38:56 > 0:39:00So what kind of experience do you or your dad have in property renovation?
0:39:00 > 0:39:04Um... Well, no experience really
0:39:04 > 0:39:06but you've got to start somewhere to get experience.
0:39:06 > 0:39:11So hopefully we shall learn a lot from this place.
0:39:11 > 0:39:14And I'm sure they will.
0:39:14 > 0:39:18There is a heck of a lot to do here. Mike reckons he and his dad
0:39:18 > 0:39:20can handle much of the labour themselves.
0:39:20 > 0:39:23They've got electrician and plumber friends lined up to help as well.
0:39:23 > 0:39:26That will be handy because they will have to rewire,
0:39:26 > 0:39:27replaster and redecorate both houses.
0:39:27 > 0:39:31What are their plans for upstairs?
0:39:31 > 0:39:34What about this property then, you've got this really weird layout
0:39:34 > 0:39:37upstairs, with the bedrooms and the way they are all linked together.
0:39:37 > 0:39:39That's right, it's like a massive ring up there.
0:39:39 > 0:39:42You can just imagine your mother chasing you around with a frying pan
0:39:42 > 0:39:44and you running away all the time!
0:39:44 > 0:39:47But then we shall probably block a few of them off
0:39:47 > 0:39:51and just keep it doors, like, going into each individual bedroom
0:39:51 > 0:39:54and probably leave it as that.
0:39:54 > 0:39:57Running around with frying pans?
0:39:57 > 0:40:01Sounds like Mike has been watching too many episodes of Tom and Jerry.
0:40:05 > 0:40:08Having said that, the doors and floors up here
0:40:08 > 0:40:09do resemble something in a cartoon.
0:40:11 > 0:40:16We had a surveyors report done and they said the first floor floor
0:40:16 > 0:40:18hasn't got enough structure on it
0:40:18 > 0:40:21and that's why it's bowling and sloping
0:40:21 > 0:40:23in every direction it possibly can.
0:40:23 > 0:40:28We need to somehow get in here and make things a bit more adequate
0:40:28 > 0:40:31to hold that first floor really.
0:40:31 > 0:40:34Tell me how much you've set aside to do the work?
0:40:34 > 0:40:40We worked on a budget of 35,000 and then we had
0:40:40 > 0:40:44the surveyors report done before and he seemed to think 50,000.
0:40:44 > 0:40:47So there's quite a margin in-between those two.
0:40:47 > 0:40:50Hopefully, I would have thought around 40.
0:40:50 > 0:40:54I hope Mike and his dad won't unearth any major problems
0:40:54 > 0:40:59whilst they do the renovation, or that budget could easily shoot up.
0:40:59 > 0:41:02How long do they reckon it will all take?
0:41:03 > 0:41:07Well if you put a rough guess, which is hard to say,
0:41:07 > 0:41:09I would have thought within four months
0:41:09 > 0:41:12we should be cracking on with it, maybe five, something like that.
0:41:12 > 0:41:14It's going to take a long time.
0:41:14 > 0:41:17We are looking to rent after.
0:41:17 > 0:41:23The sooner we can start getting money back on the properties, hopefully, again!
0:41:25 > 0:41:28It's good that Mike's planning ahead but don't forget
0:41:28 > 0:41:32there's a long way to go before this place will be ready to rent out.
0:41:32 > 0:41:37It's a blooming big job in anybody's book this, isn't it?
0:41:37 > 0:41:40You and your dad, no experience, lots of enthusiasm.
0:41:40 > 0:41:43We both like a challenge, that's the main thing, we both like a challenge.
0:41:43 > 0:41:46Do you think you've bitten off more than you can chew here?
0:41:46 > 0:41:51If we do, I think we've got enough friends that we can get in and come in as well, but hopefully
0:41:51 > 0:41:54you shall see when you come back, and see it's all torn down
0:41:54 > 0:41:56and we just ran away from the place probably!
0:41:56 > 0:42:00But I think we can do it.
0:42:00 > 0:42:02I'm confident enough.
0:42:02 > 0:42:04- Good luck with it all. - Thank you very much.
0:42:04 > 0:42:06- A few challenges ahead. - Yes, definitely.
0:42:06 > 0:42:10But I hope, I hope it turns out for you.
0:42:10 > 0:42:13Thank you very much.
0:42:13 > 0:42:17Well, good on Mike for encouraging his dad to take this project on.
0:42:17 > 0:42:19But I really wonder if they really know
0:42:19 > 0:42:21quite what they're letting themselves in for.
0:42:21 > 0:42:25A lot of work to do, not much experience,
0:42:25 > 0:42:29lots of enthusiasm though, and, of course, tons of hope.
0:42:29 > 0:42:33You can find out how they get on later in the show.
0:42:35 > 0:42:38Well, now, time has passed.
0:42:38 > 0:42:41Let's return to find out what happened to those properties.
0:42:41 > 0:42:44Are we confident they will look as good as new?
0:42:44 > 0:42:45- Let's hope so.
0:42:45 > 0:42:49# On the beach On the beach... #
0:42:49 > 0:42:52That's where we are today. By the beach, by a castle.
0:42:52 > 0:42:57Not a sandcastle, but a castle in Kent where this bungalow was bought
0:42:57 > 0:43:04at auction for 186,000 by Graham and his very organised partner, Wendy.
0:43:04 > 0:43:06I always make hundreds of lists.
0:43:06 > 0:43:09Everything has to be priced, listed, it's done on a schedule.
0:43:09 > 0:43:11All my schedules are done. Everything.
0:43:11 > 0:43:15The bungalow has been improved throughout but without using
0:43:15 > 0:43:17the planning permission that came with it.
0:43:17 > 0:43:19They replaced the small conservatory on the back
0:43:19 > 0:43:21with a slightly bigger version.
0:43:23 > 0:43:28All three downstairs reception rooms were re-plastered and redecorated.
0:43:28 > 0:43:31The open fires and chimneys were removed to make more room.
0:43:35 > 0:43:38Wendy's partner Graham is working today
0:43:38 > 0:43:41so it's been left to her to tell us what's been done.
0:43:47 > 0:43:50We stripped out two cupboards.
0:43:50 > 0:43:54We had two cupboards. One here and one here, pantries.
0:43:54 > 0:43:59And a porch. We had to knock all that out and put a lintel in
0:43:59 > 0:44:01to get the French window through.
0:44:01 > 0:44:05We wanted to put in a country kitchen, we've put a range in.
0:44:05 > 0:44:09I tried to give it a contemporary twist with the
0:44:09 > 0:44:14worktop and the different handles just to make it a bit more modern.
0:44:14 > 0:44:17By using the brickwork for the tiles,
0:44:17 > 0:44:20cream brickwork, it just brings it up to a contemporary look.
0:44:20 > 0:44:23Everything's fitted. We've managed to get the boiler in
0:44:23 > 0:44:26and some unsightly gas cupboards and meters and things like that
0:44:26 > 0:44:29so we managed to get everything into the layout.
0:44:29 > 0:44:33Gives it a really big perspective now as you walk through.
0:44:33 > 0:44:35You could dine in here if you wanted to.
0:44:35 > 0:44:39But the idea is to dine out into the conservatory.
0:44:41 > 0:44:44Solid oak flooring throughout on this ground floor.
0:44:44 > 0:44:47That will follow through to the dining room.
0:44:47 > 0:44:50And I think really it just makes a really bright room now
0:44:50 > 0:44:53with loads of light coming in where it was really dingy.
0:44:53 > 0:44:56They've done a beautiful job here.
0:44:56 > 0:44:58The theme of knocking through into the conservatory has been
0:44:58 > 0:45:03carried on into the lounge which has been transformed from a dingy room
0:45:03 > 0:45:06into a lovely bright living space.
0:45:09 > 0:45:11Has anything happened upstairs?
0:45:11 > 0:45:15The two upstairs bedrooms I think have really transformed
0:45:15 > 0:45:18because there was only two small really dingy windows in there
0:45:18 > 0:45:21which were also boarded-up which made it worse.
0:45:21 > 0:45:27In the back bedroom we've put in a dormer window and then we've also
0:45:27 > 0:45:30put in a Velux, large Velux window on the side
0:45:30 > 0:45:33so you've actually got triple aspect now on that back bedroom.
0:45:33 > 0:45:36On the front where we took the chimney breast out
0:45:36 > 0:45:37and there's a new roof on that area.
0:45:37 > 0:45:40We couldn't put a dormer in the front because of planning.
0:45:40 > 0:45:44So we've put a Velux in the side which again is really large
0:45:44 > 0:45:45and just lets the light flood through.
0:45:45 > 0:45:49That large skylight in the side has allowed the second bedroom
0:45:49 > 0:45:53to be used as a usable living space rather than a converted attic.
0:45:53 > 0:45:56Even though this is now looking really modern,
0:45:56 > 0:45:59Graham and Wendy have tried to keep some of the 1930s features
0:45:59 > 0:46:03like these tiles that were part of the original fire surround
0:46:03 > 0:46:05and are now reused in the kitchen.
0:46:07 > 0:46:11Another feature they kept is the front door.
0:46:11 > 0:46:15The front door. It was really sad when we first got here
0:46:15 > 0:46:17and we were hoping we could salvage it.
0:46:17 > 0:46:20I was looking through the internet on salvage experts
0:46:20 > 0:46:24to see how much a new door would be to get a 1930s door.
0:46:24 > 0:46:27I found my front door in there for about £700.
0:46:27 > 0:46:29I decided it was definitely worth restoring
0:46:29 > 0:46:34and I spoke to the chippy and the painter and they said yes,
0:46:34 > 0:46:37a labour of love, they'd get it painted back up for us.
0:46:37 > 0:46:41Got it reglazed, double-glazed, and it's back to normal now.
0:46:43 > 0:46:46The couple have used local contractors wherever needed.
0:46:46 > 0:46:49There has been extra help from the family.
0:46:49 > 0:46:52Emmy, my granddaughter, has been a great help to me.
0:46:52 > 0:46:55She likes to help with the interior design
0:46:55 > 0:46:57of all the properties that we do up.
0:46:57 > 0:47:00She's been particularly involved with this one because my partner
0:47:00 > 0:47:02has been working away quite a bit.
0:47:02 > 0:47:06I helped herby just coming along
0:47:06 > 0:47:09and coming to lend her a hand really.
0:47:09 > 0:47:14The upstairs room and I did all the decorating,
0:47:14 > 0:47:18like, I put all the teddy bears in place
0:47:18 > 0:47:22and the beanbags, and it was really fun.
0:47:22 > 0:47:25Sounds like we've got a budding property developer here.
0:47:26 > 0:47:29I might buy houses and do them up
0:47:29 > 0:47:33but I would also like to be an actress.
0:47:35 > 0:47:37The original budget was about 47,000.
0:47:37 > 0:47:42With all the work that's been done here, have they kept to that?
0:47:42 > 0:47:47We decided once we'd had a really good look at the roof that it needed
0:47:47 > 0:47:51to be re-tiled so that added about another 10,000 on to our budget.
0:47:51 > 0:47:54We went for the largest conservatory with the permitted development rights
0:47:54 > 0:47:57so that also added a little bit more on.
0:47:57 > 0:48:01The new target was 60,000 which I've kept to strictly.
0:48:02 > 0:48:06Doing the roof and upping the spec has meant they've gone over budget.
0:48:06 > 0:48:11But did they keep to the original timescale of three to four months?
0:48:11 > 0:48:14Despite having a really bad weather chucked at us,
0:48:14 > 0:48:16we had rain, floods, you name it.
0:48:16 > 0:48:19We still managed to keep to schedules.
0:48:19 > 0:48:23We had industrial heaters in here and anything we could think of
0:48:23 > 0:48:27to keep the place warm so that everybody could just keep on
0:48:27 > 0:48:29carrying on work in a happy environment, really.
0:48:31 > 0:48:35People happy in their work tend to do a better job
0:48:35 > 0:48:37and they've certainly done that here.
0:48:37 > 0:48:42We asked along two local estate agents to give us their opinion on how the bungalow looks now.
0:48:44 > 0:48:47First impressions are good.
0:48:47 > 0:48:49Bringing people through the door it's certainly got the wow factor.
0:48:49 > 0:48:51I think clients will be impressed.
0:48:51 > 0:48:54Yeah, it's a high end spec and that's something we like to have on our books.
0:48:54 > 0:48:57The property has been done very attractively.
0:48:57 > 0:49:01It's got light pastel colours which I think are attractive.
0:49:01 > 0:49:04I think the kitchen has been done beautifully.
0:49:04 > 0:49:08The conservatory I think was an inspired idea because
0:49:08 > 0:49:10it really does create an extra area of living space.
0:49:12 > 0:49:15Graham and Wendy bought the bungalow for 186,000
0:49:15 > 0:49:18and have spent another £60,000 on it.
0:49:18 > 0:49:21How much could it sell for?
0:49:21 > 0:49:24I think with the market improving the way it has done
0:49:24 > 0:49:28I would be looking to put this on the market for £350,000.
0:49:28 > 0:49:33I would recommend a figure in the region of £365,000.
0:49:33 > 0:49:34I'm really pleased with that.
0:49:34 > 0:49:37It is about the figure I thought it would be.
0:49:37 > 0:49:40We did check with local agents a couple of months ago
0:49:40 > 0:49:45just to make sure we're on track with the budget and what we were spending.
0:49:45 > 0:49:49What if they decided to go down the rental route?
0:49:49 > 0:49:52Rental on this, it's a good finish so you'll get good clientele
0:49:52 > 0:49:55in here which would hopefully secure it in a long-term contract.
0:49:55 > 0:49:58I think you'd be looking at about £1,000 per calendar month.
0:49:58 > 0:50:03I would recommend a figure of £900 per calendar month.
0:50:03 > 0:50:05I think that would be about right.
0:50:05 > 0:50:07There's quite a few business people.
0:50:07 > 0:50:10There's businesses, local businesses here where people from London
0:50:10 > 0:50:13would rent for that sort of amount, I think.
0:50:15 > 0:50:17The bungalow looks fantastic now
0:50:17 > 0:50:21so what does Wendy think of the job they've done?
0:50:21 > 0:50:26Every time I walk in now I go, "Wow!" I'm really, really pleased with it.
0:50:26 > 0:50:27Even without the financial gains
0:50:27 > 0:50:31I think it's been really good fun to work on.
0:50:35 > 0:50:36We're back in Cornwall.
0:50:36 > 0:50:40Bodmin, to be precise, where this neighbouring pair of properties
0:50:40 > 0:50:42sold at auction for £101,000.
0:50:42 > 0:50:45They were bought by a local farmer, Colin,
0:50:45 > 0:50:48as an investment for himself and his son Mike to renovate.
0:50:50 > 0:50:54So what kind of experience do you or your dad have in property renovation?
0:50:54 > 0:50:57No experience really but you've got to start somewhere to get experience.
0:50:57 > 0:51:01So hopefully we shall learn a lot from this place.
0:51:01 > 0:51:05So, how steep has that learning curve been?
0:51:05 > 0:51:08We caught up with Mike back at the properties
0:51:08 > 0:51:11to find out if they'd got the love they desperately needed.
0:51:11 > 0:51:13# Love is for the two of us
0:51:13 > 0:51:15# Love is for the two of us... #
0:51:22 > 0:51:27Well, it's not quite as finished as you might hope after 17 months
0:51:27 > 0:51:30but there was a lot of demolition work that had to be done first.
0:51:30 > 0:51:33They had to rip almost everything out
0:51:33 > 0:51:36because the place was riddled with woodworm.
0:51:36 > 0:51:38When they rebuilt the walls they changed the layout
0:51:38 > 0:51:41to make both houses two bedroom properties of equal size.
0:51:41 > 0:51:44The old stairs have been ripped out,
0:51:44 > 0:51:48moved and replaced, with new wooden staircases in both properties.
0:51:50 > 0:51:55In the front rooms there are now modern fireplaces, and in both,
0:51:55 > 0:51:56brand new matching kitchens.
0:51:58 > 0:52:01And matching bathroom suites too.
0:52:01 > 0:52:03With a lot of work still to do
0:52:03 > 0:52:07I wondered why it's taken so long to get this place finished.
0:52:07 > 0:52:09We are both on the farm full time
0:52:09 > 0:52:12but we thought we'd have enough time to come in here as well
0:52:12 > 0:52:14and do a fair bit of that.
0:52:14 > 0:52:18We both thought we could come along and do anything,
0:52:18 > 0:52:21but the farm just had too much to be done
0:52:21 > 0:52:23and we just couldn't get here basically.
0:52:23 > 0:52:28There were times when we could have come here but there were other things that took priority over this place.
0:52:28 > 0:52:32The days were going on and the months then started going on and we thought,
0:52:32 > 0:52:33"This isn't moving anywhere",
0:52:33 > 0:52:38so we thought "Right, it's time to come in and get things moving and get the builders in."
0:52:38 > 0:52:40so we rung around different builders
0:52:40 > 0:52:44and they came in and said,"Right, this, this, this needs doing."
0:52:44 > 0:52:48And so, eventually we'd done all the donkey work and done the easy stuff
0:52:48 > 0:52:51and the hard stuff and the labouring stuff out the way,
0:52:51 > 0:52:54so all they had to do was just come in here and build.
0:52:54 > 0:52:57We done all the destruction and they'll do the construction.
0:52:57 > 0:53:00And it wasn't just the inside that was getting some attention.
0:53:00 > 0:53:02Remember the overgrown garden at the back?
0:53:02 > 0:53:06That's been cleared ready for turf to be laid
0:53:06 > 0:53:08or better still, some landscaping.
0:53:08 > 0:53:10By the sounds of it,
0:53:10 > 0:53:13the budget here has been doing some growing of its own.
0:53:16 > 0:53:20Started off with a 35,000 budget, roughly,
0:53:20 > 0:53:25and now we're roughly on the 60,000 sort of mark.
0:53:25 > 0:53:27The budget's gone up
0:53:27 > 0:53:30but I think we will still come out all right on it hopefully.
0:53:30 > 0:53:31That's the main thing.
0:53:31 > 0:53:33Let's hope they still see a good return on their investment.
0:53:33 > 0:53:37To find out if that might be the case
0:53:37 > 0:53:41we asked two local property experts to give us their opinions.
0:53:41 > 0:53:44The finish at the moment is still quite early on.
0:53:44 > 0:53:50The building process generally is quite well advanced but I'd say
0:53:50 > 0:53:55just general finishing touches need to be done throughout the properties.
0:53:55 > 0:54:01They're in a good general state of condition and obviously it's a complete renovation
0:54:01 > 0:54:03so just a few bits and bobs to finish off
0:54:03 > 0:54:07really, to get it ready for the market and make it saleable.
0:54:07 > 0:54:11The kitchen units and the bathrooms and so on are quite pleasant.
0:54:11 > 0:54:15They don't need to be world class in a petite cottage
0:54:15 > 0:54:17but actually they look quite smart.
0:54:17 > 0:54:22Once the work's finished the total spend here will be about £161,000.
0:54:22 > 0:54:25That's 60 grand for the renovation
0:54:25 > 0:54:28plus the £101,000 they paid at auction.
0:54:28 > 0:54:34How much is each property now worth individually on the resale market?
0:54:34 > 0:54:38Both properties I would currently value at £120,000.
0:54:38 > 0:54:43Once they are both complete and ready to go on the market.
0:54:43 > 0:54:45Both properties have got slight quirks,
0:54:45 > 0:54:47marginally better than the other one
0:54:47 > 0:54:51but on balance they're probably the same value
0:54:51 > 0:54:56which would be about £125,000, all jobs done.
0:54:56 > 0:54:59Obviously really chuffed with that.
0:54:59 > 0:55:01That's really good news.
0:55:01 > 0:55:04It means we've come out all right on it after all that.
0:55:04 > 0:55:07Yeah, really pleased, really pleased with what happened there.
0:55:07 > 0:55:09I bet he is because combined,
0:55:09 > 0:55:13that's a total of £250,000 for the properties,
0:55:13 > 0:55:16so a £90,000 pre-tax profit.
0:55:16 > 0:55:20But Mike and his dad Colin planned to rent them out initially,
0:55:20 > 0:55:22how much can they ask for them?
0:55:22 > 0:55:25Per calendar month you'd probably get
0:55:25 > 0:55:28the better part of £525, maybe even £550.
0:55:28 > 0:55:32The current rental value for each of these properties would be
0:55:32 > 0:55:37approximately £525 per calendar month in the current market.
0:55:37 > 0:55:42That's top end rent of £550 per month provides a good yield
0:55:42 > 0:55:45of around eight per cent. Is Mike happy with that?
0:55:48 > 0:55:51We thought we'd be around the 550 sort of mark anyway
0:55:51 > 0:55:57because just purely through the amount of people that come to us and asked if we're going to rent it.
0:55:57 > 0:55:59Literally every day we've been here
0:55:59 > 0:56:01we've had people knocking on the door,
0:56:01 > 0:56:04saying, "When's it ready?" or, "How much do you want for it?"
0:56:04 > 0:56:07Or, "Have you already rented it?" So the interest is high.
0:56:07 > 0:56:10I'm sure we can get easy money on it.
0:56:12 > 0:56:16So with all that interest they're sure to fill the houses very quickly
0:56:16 > 0:56:19after the work is finished, which should be in about five weeks.
0:56:19 > 0:56:22Would Mike take on such a large project again?
0:56:24 > 0:56:29We got to think about our time and our money a bit more wiser
0:56:29 > 0:56:30than what we thought.
0:56:30 > 0:56:34Don't get us wrong, we came away really happy with how this
0:56:34 > 0:56:39has happened, but we won't be taking on such a big project.
0:56:40 > 0:56:43We'll be back next time with more auction properties
0:56:43 > 0:56:44to whet your appetite.
0:56:44 > 0:56:48We hope we've inspired you and maybe demystified the auction world,
0:56:48 > 0:56:51here on Homes Under The Hammer.
0:56:51 > 0:56:52- See you soon.- Goodbye.- Goodbye.
0:56:56 > 0:56:59Subtitles by Red Bee Media Ltd
0:56:59 > 0:57:02E-mail subtitles@bbc.co.uk