0:00:02 > 0:00:04Even in the volatile property market, many of us are still
0:00:04 > 0:00:08- so interested in it.- Lucy and I love the thrill of the auction room
0:00:08 > 0:00:12as do thousands of people who every year buy their homes under the hammer.
0:00:37 > 0:00:41We are constantly amazed by the stories from the auction room.
0:00:41 > 0:00:45Some real life dramas, some real life successes sometimes.
0:00:45 > 0:00:47Yes, and we've found three more stories for you today.
0:00:47 > 0:00:50Let's find out what they are.
0:00:51 > 0:00:56'I assess the damage to this two-bed end-of-terrace in Dawley near Telford.'
0:00:56 > 0:00:58So how bad's it going to be?
0:00:58 > 0:01:00Crikey.
0:01:00 > 0:01:05'This Kent semi-detached house is clinging to its 70s roots.'
0:01:05 > 0:01:08Look at this wallpaper! Fantastic!
0:01:08 > 0:01:11I think this has come back into fashion.
0:01:11 > 0:01:16'And in Nottinghamshire, this perfectly presentable property had a very low guide price.'
0:01:16 > 0:01:21What could possibly be wrong? Wait and see.
0:01:22 > 0:01:27'All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:27 > 0:01:30'when they went under the hammer.'
0:01:34 > 0:01:38'The new town of Telford in Shropshire was built in the 1960s and 1970s.
0:01:38 > 0:01:43'Drive just ten minutes east of there and you'll find the quiet town of Dawley.
0:01:43 > 0:01:46'Despite the fact that Telford is just a stone's throw away,
0:01:46 > 0:01:51'Dawley has retained its own distinct character, making it a popular place to live.'
0:01:54 > 0:01:59So this is Rhodes Avenue and from the outside at least,
0:01:59 > 0:02:04the property I'm here to see looks like it's seen better days.
0:02:04 > 0:02:09Lots and lots of evidence of smoke damage coming up from that lower window there.
0:02:09 > 0:02:15The actual property itself is boarded up. That could explain the guide price, which was £30,000.
0:02:15 > 0:02:20How bad is it inside? Better go and find out, I suppose.
0:02:25 > 0:02:32'The previous owner escaped the fire but the damage was pretty serious.'
0:02:33 > 0:02:37So how bad's it going to be? Oh. Crikey.
0:02:38 > 0:02:41I don't have to go very far to see the state of the damage here.
0:02:41 > 0:02:46That is the electricity consumer unit and it's just completely melted.
0:02:46 > 0:02:50Wow. So into what was, I imagine, the living room.
0:02:50 > 0:02:56And, as you can see, it is in a right old state.
0:02:56 > 0:03:00The windows have gone. Could have been smashed out by the fire brigade to get in here.
0:03:00 > 0:03:04At the moment, the ceiling's being supported by these acro props.
0:03:04 > 0:03:08And it's just a classic case of extreme fire damage.
0:03:08 > 0:03:12Not a bad size space, though. Let's try and get back to some basics.
0:03:12 > 0:03:15We like the amount of room here. And then through into the kitchen.
0:03:20 > 0:03:25'No surprises in here. The damage continues, but again, the room is a very good size.
0:03:25 > 0:03:28'Obviously, an entire new kitchen is needed,
0:03:28 > 0:03:32'but you would probably put one in anyway if you were renovating the place.'
0:03:35 > 0:03:40Upstairs, it carries on looking absolutely horrendous.
0:03:40 > 0:03:44What have we got underneath here, though? We've got two bedrooms and a bathroom.
0:03:44 > 0:03:48Clearly, they are in a right old state,
0:03:48 > 0:03:51but what kind of state? That is what we've got to decide,
0:03:51 > 0:03:56because that will make a massive difference to how much it's going to cost to get this sorted.
0:03:56 > 0:04:01Downstairs, definite serious fire damage. Up here, my thoughts are that this is largely smoke damage.
0:04:01 > 0:04:07Although it looks horrendous, structurally I don't think it's too much of a problem.
0:04:07 > 0:04:12And it could work in your favour, because most people walking round here would be very put off by this.
0:04:12 > 0:04:16'But if you can see past the smoke damage and make an informed assessment,
0:04:16 > 0:04:22'you could be onto a real winner. However, I would definitely suggest getting a structural engineer in
0:04:22 > 0:04:28'to examine the extent of the damage and how any potential repairs will affect the renovation costs.
0:04:29 > 0:04:32'The electrics and plumbing also need to be safety-checked.
0:04:32 > 0:04:38'Replacing these should be a consideration when calculating the budget.
0:04:38 > 0:04:42'But this property has possibilities, and if you look beyond the results of the fire,
0:04:42 > 0:04:47'that £30,000 guide price does start to look more attractive.
0:04:47 > 0:04:50'What does a local estate agent think?'
0:04:50 > 0:04:53This particular house needs quite significant work.
0:04:53 > 0:04:56It's seen better years and it's completely burnt out.
0:04:56 > 0:04:59It's nicely situated towards the end of the cul-de-sac,
0:04:59 > 0:05:03so with young families, young children, you're not on a busy main road.
0:05:03 > 0:05:06'But it needs a lot of work. Let's talk numbers.'
0:05:06 > 0:05:10The cost of getting this into some sort of order and repairing the fire damage
0:05:10 > 0:05:14could vary considerably depending on whether it needs any structural work.
0:05:14 > 0:05:22Therefore, I estimate it's going to cost at least £15,000 to somewhere between £25,000.
0:05:22 > 0:05:26'Once you've made your investment, would it be worth it?'
0:05:26 > 0:05:30When the works have been fully completed and if a driveway is put in at the front,
0:05:30 > 0:05:34I'd estimate a resale value of £85,000.
0:05:34 > 0:05:38'Could be a tidy profit, depending on the purchase price.
0:05:38 > 0:05:41'How about as an ongoing concern?'
0:05:41 > 0:05:45I would estimate a rental value of £475 per calendar month.
0:05:46 > 0:05:51- HE COUGHS - It's nice to get a bit of fresh air after being in that house.
0:05:51 > 0:05:54But benefiting here from a really nice sized garden
0:05:54 > 0:05:58and the fact that it is an end terrace means that you've got this open aspect.
0:05:58 > 0:06:01That said, you are taking on a bit of a project with this one
0:06:01 > 0:06:05and not one for the first-timer, I would hazard a suggestion.
0:06:05 > 0:06:09Let's find out who went for it when it went to the auction.
0:06:09 > 0:06:12Lot number five is a two-bed end townhouse
0:06:12 > 0:06:16and it has suffered substantial fire damage.
0:06:16 > 0:06:1830,000 start me here.
0:06:19 > 0:06:2230,000 I'm bid. Standing right at £30,000. 35, is it?
0:06:22 > 0:06:2635 is it? 35,000.
0:06:26 > 0:06:2940 is it? £40,000.
0:06:29 > 0:06:33At £40,000. Standing right at £40,000.
0:06:33 > 0:06:37I'll take one if it helps. 41 at the back.
0:06:37 > 0:06:4042. 43.
0:06:40 > 0:06:4244. 45.
0:06:42 > 0:06:4546?
0:06:45 > 0:06:49At 45,000. In the doorway at 45. New bidder, 46.
0:06:49 > 0:06:5247. 48. 49.
0:06:52 > 0:06:5550, sir? 50.
0:06:55 > 0:07:0051. Shaking his head. In the doorway at £51,000.
0:07:00 > 0:07:0252 anywhere else?
0:07:02 > 0:07:05He's back in, 52.
0:07:05 > 0:07:08In the doorway, 53? 53 in the door.
0:07:08 > 0:07:11New bidder, 54, seated. 55?
0:07:11 > 0:07:15Shaking his head. With you, sir, first bid, £54,000.
0:07:15 > 0:07:1855 anywhere else? New bidder. 55.
0:07:19 > 0:07:2156.
0:07:22 > 0:07:2557. 58, sir?
0:07:25 > 0:07:2758. Shaking his head.
0:07:27 > 0:07:29Still with you, sir. £58,000.
0:07:29 > 0:07:32Are we all done now?
0:07:32 > 0:07:3658, then, for the first time. 58 for the second time.
0:07:36 > 0:07:39Third and final time at £58,000.
0:07:39 > 0:07:42- HAMMER BANGS - It's your lot, sir. Well done.
0:07:42 > 0:07:45'The successful bid came from Norman.
0:07:47 > 0:07:52'He owns a roofing company but hopes to move into property development full-time.
0:07:52 > 0:07:56'Norman paid £58,000 at auction. Does he know what's in store for him?'
0:07:56 > 0:08:00Norman, congratulations. Lovely to meet you.
0:08:00 > 0:08:03- It's a mess, isn't it?- Just a bit! THEY LAUGH
0:08:03 > 0:08:08- Tell me why you wanted to buy it. - Erm, I particularly liked the position of it, really.
0:08:08 > 0:08:13And the work on it, it looks a lot worse than it actually is.
0:08:13 > 0:08:20- It's actually mostly smoke damage. - Right.- And very little structural damage, other than windows and doors.
0:08:20 > 0:08:25- How do you know that? - I had a good look round it twice before we went to auction,
0:08:25 > 0:08:29worked out the budget then and figured we could make some money out of it.
0:08:29 > 0:08:33- Have you done this kind of thing before? - Yes. I do it quite regularly.
0:08:33 > 0:08:36- I've been doing it for 30 years. - What specifically?
0:08:36 > 0:08:40Renovations, buy and sell property. I've always bought and sold my own houses.
0:08:40 > 0:08:43Bought them with work on and made money that way.
0:08:43 > 0:08:49So the fact that it does, at first glance, look to be in a right old state,
0:08:49 > 0:08:52- do you think that worked in your favour?- Yes, I think so.
0:08:52 > 0:08:55I think it would put quite a few people off,
0:08:55 > 0:09:00but most of the people that have a good knowledge of the building trade would see it's mostly cosmetic.
0:09:00 > 0:09:06How can you tell the difference between something that's superficial, to a degree,
0:09:06 > 0:09:11and something which is seriously nasty and has affected the structure of the building?
0:09:11 > 0:09:16The first thing to look at is where the fire was. This was in the lounge.
0:09:16 > 0:09:21It was either a sofa or a sofa bed. So you look at the immediate vicinity
0:09:21 > 0:09:24and the floor joists weren't particularly charred.
0:09:24 > 0:09:29There's a little bit of damage running up the staircase and upstairs it's smoke damage.
0:09:29 > 0:09:35The lounge window has been smashed out, probably by the fire service, just to get access in.
0:09:35 > 0:09:38But other than that, it is just purely cosmetic.
0:09:38 > 0:09:42- Have you taken on a project like this before?- Not this badly damaged.
0:09:42 > 0:09:49But buildings that require a lot of attention I've done. But not specifically fire damage, no.
0:09:57 > 0:10:01'Thankfully, Norman isn't put off by the effects of the fire and blackened walls,
0:10:01 > 0:10:07'though I would still advise getting experts in to assess the true extent of the damage.
0:10:07 > 0:10:13'Meanwhile, what will it take to transform this place into a fully-functioning family home?'
0:10:13 > 0:10:19We'll replace all the plaster to the walls, all the ground floor doors and door frames want replacing,
0:10:19 > 0:10:24the kitchen would've needed updating anyway, but that's quite badly smoke and fire damaged.
0:10:24 > 0:10:27First floor is a new bathroom suite and new plastering
0:10:27 > 0:10:31and then it's just decoration, carpet, finishes.
0:10:31 > 0:10:35And then externally, we'll put a new driveway in
0:10:35 > 0:10:37and just make a nice garden.
0:10:37 > 0:10:42- Couple of weeks work, then. - Well, about ten weeks, I think. - Ten weeks to get it sorted.
0:10:42 > 0:10:47- And what kind of cost to do that? - The budget's between £16,000 and £20,000.
0:10:47 > 0:10:51And that gives us about a £2,500 to £3,000 contingency.
0:10:51 > 0:10:55- And have to incorporated in redoing all the electrics? - Yes. I've allowed for a rewire
0:10:55 > 0:10:59because, if you look as you go through the front door,
0:10:59 > 0:11:06the consumer unit's disappeared. I thought it was an electrical fire at first, but it's just melted away.
0:11:06 > 0:11:11And the heating is quite old, so we've allowed for new plumbing and heating throughout.
0:11:12 > 0:11:18'Norman's under no illusion, it seems, as he's really done his homework for the job in hand.
0:11:18 > 0:11:21'But does he have a solution for the external appearance?'
0:11:21 > 0:11:25What about the smoke damage on the front of the property?
0:11:25 > 0:11:29I think we'd probably just power-wash it, or if it still won't come off,
0:11:29 > 0:11:33we'll acid clean it or maybe a light sandblast.
0:11:33 > 0:11:37- So it's not too much of an issue? - I don't think so. It's cosmetic.
0:11:37 > 0:11:41It does look bad, but it's just the way the smoke's billowed out from the window
0:11:41 > 0:11:45when they've smashed the glass, I think. So, yeah, shouldn't be a problem.
0:11:47 > 0:11:52'Norman plans to do all the work himself with the help of his son, who's a construction worker.
0:11:52 > 0:11:55'He'll get specialists in for the electrics and plumbing
0:11:55 > 0:11:59'and to maximise his profit margin, given the current climate.
0:11:59 > 0:12:02'He'll rent the house out once the work is complete.'
0:12:02 > 0:12:05- Congratulations.- Thanks. - Good luck with it all.- Thank you.
0:12:05 > 0:12:11- Look forward to seeing how you get on.- Yes.- I'm sure we'll notice a big difference!- It should be.
0:12:11 > 0:12:16Well, Norman not too daunted by the project ahead.
0:12:16 > 0:12:20And it's lovely to think that this house will be turned back into a liveable home.
0:12:20 > 0:12:24However, I am a bit concerned. You really don't know what kind of damage has been done
0:12:24 > 0:12:30until you get into the fabric of the house, so I hope he doesn't unearth too many nasties when he starts.
0:12:30 > 0:12:33You can find out how he gets on later in the show.
0:12:36 > 0:12:39'This is Hythe in Kent,
0:12:39 > 0:12:42'four miles west of Folkestone, overlooking the English Channel.
0:12:42 > 0:12:47'Over the years, Hythe has grown from a fishing village into a popular seaside town,
0:12:47 > 0:12:54'but that popularity has meant the demand for properties often outstrips the supply.'
0:12:58 > 0:13:03Well, this is Hillside Street. It's just a few roads back from Hythe High Street.
0:13:03 > 0:13:06Now, I'm here to see this 70s semi,
0:13:06 > 0:13:10which is tucked right down here behind this wall.
0:13:10 > 0:13:12Now, one issue I can see straight away
0:13:12 > 0:13:17is that it's going to be a bit of a nightmare trying to park around here.
0:13:17 > 0:13:21So getting materials and workmen to this site could be pretty tricky.
0:13:21 > 0:13:26'Fortunately, the house does have a garage at the bottom of the garden at the back.
0:13:26 > 0:13:32'But if anything, access is more restricted there, and you'd have to lug everything through the garden.
0:13:32 > 0:13:36'Still, the guide price was £115,000 to £120,000,
0:13:36 > 0:13:39'low for a three-bed detached house in this area.
0:13:39 > 0:13:43'But judging by the state of the outside, I'm beginning to understand why.'
0:13:43 > 0:13:47Once you've actually managed to get down those stairs...
0:13:47 > 0:13:52It's quite an uninviting space to walk into, I have to say.
0:13:52 > 0:13:54And look at this wallpaper! Fantastic!
0:13:54 > 0:13:56I think this has come back into fashion!
0:13:56 > 0:13:59I don't think this one has just yet.
0:13:59 > 0:14:02But it's quite open, this property.
0:14:02 > 0:14:06And you can see, it just needs everything doing to it.
0:14:06 > 0:14:09You've got a hot-air heating system, so there's obviously no radiators.
0:14:09 > 0:14:14Do you think this is the kitchen? Yes. Quite interesting.
0:14:14 > 0:14:18All you've got in here is a sink. I doubt this house is even mortgageable.
0:14:18 > 0:14:23But look. It is in a right old state. It's filthy.
0:14:23 > 0:14:27This is the first room I've seen, and if this is anything to go by,
0:14:27 > 0:14:29I'm not looking forward to the rest of the house.
0:14:29 > 0:14:35# I'm falling to pieces
0:14:35 > 0:14:38# I'm falling to pieces
0:14:38 > 0:14:42'Oh, dear. This place hasn't been occupied for a number of years
0:14:42 > 0:14:45'and it not only looks it, but you can smell it, too.
0:14:45 > 0:14:49'It really is starting to fall to pieces.
0:14:49 > 0:14:52'The reception room stretches across the entire width of the property,
0:14:52 > 0:14:58'divided by the chimney breast, but at least this side's lighter and brighter than the dingy hallway.'
0:14:59 > 0:15:01This house is in a bit of a dark dip
0:15:01 > 0:15:06so if you wanted to open this space up to let some light in, well, you can't,
0:15:06 > 0:15:11because this here is an old rag-stone medieval wall and it's listed.
0:15:11 > 0:15:15So that wall is here to stay.
0:15:15 > 0:15:18# You've got me up against the wall
0:15:20 > 0:15:24'Yes, you can't go knocking down medieval walls. You're just going to have to live with it.
0:15:24 > 0:15:27'It's nice to have a little history in the garden,
0:15:27 > 0:15:32'but there is one piece of history in the master bedroom that's not worth preserving.'
0:15:33 > 0:15:37This is the master bedroom and it's brilliant, because on a clear day,
0:15:37 > 0:15:39you can almost see across the Channel and beyond.
0:15:39 > 0:15:42But before you get carried away with those sea views,
0:15:42 > 0:15:46I want to show you something. Look up there.
0:15:46 > 0:15:50That is a pretty deep crack and warrants further investigation.
0:15:51 > 0:15:55# I'm falling to pieces
0:15:55 > 0:16:01'There are not only cracks in the bedroom, there's an ominous one in the bathroom.
0:16:01 > 0:16:05'And it's in a dreadful state. As is the area outside.'
0:16:05 > 0:16:08When you come out into this very overgrown garden,
0:16:08 > 0:16:12you can see this wall here is just collapsing.
0:16:12 > 0:16:16And this garden and the steps, they're just all over the place,
0:16:16 > 0:16:18obviously caused by some ground movement.
0:16:18 > 0:16:21Now, that in itself may not be a cause for concern.
0:16:21 > 0:16:26This damage may be historical. It may have even happened ages ago
0:16:26 > 0:16:28and the property itself may not be affected.
0:16:28 > 0:16:31But after seeing that crack upstairs in the back bedroom,
0:16:31 > 0:16:34I would be a little bit worried.
0:16:34 > 0:16:38I've done a bit of asking around and I've discovered that there is a geological fault line
0:16:38 > 0:16:41which runs across Hillside Street.
0:16:41 > 0:16:44So a proper structural survey needs to be done here
0:16:44 > 0:16:48to make sure this house itself isn't suffering from subsidence.
0:16:48 > 0:16:52Because if it is, then getting a mortgage may be next to impossible.
0:16:55 > 0:16:58'To find out more and hear a valuation for the property,
0:16:58 > 0:17:01'I spoke to a local estate agent.'
0:17:01 > 0:17:05Hythe in particular does suffer in certain parts
0:17:05 > 0:17:07from geological fault lines
0:17:07 > 0:17:12and Hillside Street is one of those locations and we would obviously, therefore, recommend
0:17:12 > 0:17:16that a possible buyer investigates fully before committing themselves.
0:17:18 > 0:17:21'Guided at £115,000 to £125,000,
0:17:21 > 0:17:25'if this house's shortcomings were sorted, could it work as an investment?'
0:17:25 > 0:17:32A typical rental price for this property would be in the region of about £750 per calendar month.
0:17:32 > 0:17:35Once the work on the property is completed,
0:17:35 > 0:17:40you'd put a value on this property of around £235,000, £240,000.
0:17:40 > 0:17:44'So correcting the faults here could pay dividends.'
0:17:44 > 0:17:50There's no escaping the fact that that nearby geological fault line is a cause for concern.
0:17:50 > 0:17:53And this house does need everything doing to it.
0:17:53 > 0:17:56But it's in a great location with those sea views.
0:17:56 > 0:17:59So let's see who bid for this one as we head for auction.
0:18:01 > 0:18:04Semi-detached house for total refurbishment.
0:18:04 > 0:18:07Start me at £115,000, lower end of the guide.
0:18:07 > 0:18:11115 I've got. 120 now do I see? 120.
0:18:11 > 0:18:13120. And 5. 125.
0:18:13 > 0:18:17130. 130 anywhere? 130. And 5.
0:18:17 > 0:18:21135. And 140. 140 do I see? And 5.
0:18:21 > 0:18:23145. 150.
0:18:23 > 0:18:26155 can I say? 55.
0:18:26 > 0:18:29Fill it up to 60. 160 I'm bid. 160.
0:18:29 > 0:18:33At 160,000 then for the first time.
0:18:33 > 0:18:35£160,000 for the second time.
0:18:35 > 0:18:39If we're all done. All had your chance. It's with you at 160,000.
0:18:39 > 0:18:44Can I have your number, make sure you're not bidding against yourself. What is the number?
0:18:44 > 0:18:50Yep. So I've got £160,000 for the first time.
0:18:50 > 0:18:53£160,000 bid for the second time.
0:18:53 > 0:18:56Third and final time at £160,000.
0:18:56 > 0:18:59Are we all done? It's yours at 160. The number again, please.
0:19:00 > 0:19:058843. No, it's the number in front that I've taken cos you didn't hold your number up.
0:19:05 > 0:19:098843 is the one I'm taking. And that's £160,000.
0:19:09 > 0:19:14That's the number I asked to be held up. You didn't hold your number up. That's the one I'm taking.
0:19:14 > 0:19:18'Oh, dear. There was some confusion there.
0:19:18 > 0:19:21'The auctioneer took the final bid from the chap in front.
0:19:21 > 0:19:25'It's a very rare occurrence, but as with a sports referee,
0:19:25 > 0:19:27'the auctioneer's word is final.
0:19:27 > 0:19:31'So for £160,000, the new owners of the house
0:19:31 > 0:19:34'are Ashford-based joiner David and his wife Carol.
0:19:34 > 0:19:39'They bought this as their first investment property after David was made redundant.'
0:19:40 > 0:19:45- So why have you bought this property? - Hopefully to make some money.
0:19:45 > 0:19:49- So is this an investment opportunity? - Investment. Most definitely, yes,
0:19:49 > 0:19:54'David worked for 45 years in the construction industry as a carpenter-joiner.
0:19:54 > 0:19:58'He's owned and worked for various different businesses over the years
0:19:58 > 0:20:01'so he's no rookie at the building game.'
0:20:01 > 0:20:04David, why have you chosen to take on such a project?
0:20:04 > 0:20:06Because this is a big job.
0:20:07 > 0:20:10Is it a big job? I've done it all my life.
0:20:10 > 0:20:13- You have got that rather large crack up in the bedroom.- Yes.
0:20:13 > 0:20:19- Do you think that is subsidence? - What I can see upstairs, I don't think it's subsidence.
0:20:19 > 0:20:23There's some movement there, certainly, but looking around the house,
0:20:23 > 0:20:27on the exterior I can see no signs of any movement at all.
0:20:27 > 0:20:31What did you think when you went outside and you saw all the uneven terrain,
0:20:31 > 0:20:35you've got lots of steps, walls crumbling, the walls are bowed,
0:20:35 > 0:20:37what did you think when you saw that?
0:20:37 > 0:20:41- We didn't know about the walls, did we?- We didn't know about the walls.
0:20:41 > 0:20:46When we viewed the property, the grass was quite a lot higher.
0:20:46 > 0:20:51There was pampas grass covering 90 percent of the path.
0:20:51 > 0:20:54- Yeah.- We didn't see it. I didn't see it.
0:20:55 > 0:21:00'So David did miss a few things, but with those 45 years' experience in construction,
0:21:00 > 0:21:04'he does know how to sort them out and doesn't seem too worried by them.'
0:21:04 > 0:21:07And how much do you intend spending on this, David?
0:21:07 > 0:21:13I budgeted around about 27, 28, so let's say a budget of £30,000.
0:21:13 > 0:21:16If we got to £30,000, alarm bells would ring.
0:21:16 > 0:21:19Hopefully, we should stick to budget.
0:21:19 > 0:21:21- What is it you do? - I'm an accountant.
0:21:21 > 0:21:25- So you're the lady that does the money! - Yes. And the buying, probably.
0:21:25 > 0:21:29- And what I tell her to do.- Yes. - Is that right?- I'm the labourer.
0:21:29 > 0:21:34- On this project, I'm the labourer. - As a team, do you think you'll work well together?
0:21:34 > 0:21:38We've worked probably for... We've been married 39 years
0:21:38 > 0:21:43- so we've probably worked together for two thirds of that. - At least, yeah.
0:21:43 > 0:21:48Are you really excited to get started? Is this something you really want to do?
0:21:48 > 0:21:54Oh, yes! We've wanted to do this as a business for a number of years.
0:21:54 > 0:21:59- But other well-paid jobs have come in the way.- Yeah.
0:21:59 > 0:22:01'So after years of patiently waiting,
0:22:01 > 0:22:04'they've now got a chance to take on their own project.'
0:22:04 > 0:22:10- # Take me on - # Take on me
0:22:10 > 0:22:14At a time when most people are looking forward to taking it easy,
0:22:14 > 0:22:18David is hoping to start new career as a property developer.
0:22:18 > 0:22:23There's no doubt they both have the skills and the knowledge to do this work that's needed,
0:22:23 > 0:22:26but property developing is never straightforward,
0:22:26 > 0:22:29especially with possible subsidence issues.
0:22:29 > 0:22:33So will they get the work done in time and on budget?
0:22:33 > 0:22:37Keep watching and you can find out later on in the programme.
0:22:38 > 0:22:44'Coming up, on closer inspection, I'm baffled by the low guide price for this house in Shirebrook.'
0:22:44 > 0:22:47Still nothing untoward to report.
0:22:47 > 0:22:52'In Kent, it seems the earth did move at this 1970s throwback.'
0:22:52 > 0:22:58Folkestone had an earth tremor or quake and it probably stems from that.
0:23:00 > 0:23:04'But first, in Shropshire, the fire damaged property turned out to be heavy work.'
0:23:04 > 0:23:07They took 80 tonnes of rubbish off here.
0:23:12 > 0:23:16'I'm back in Telford, Shropshire, where this two-bed end-terrace
0:23:16 > 0:23:19'had suffered some bad fire and smoke damage.
0:23:19 > 0:23:25'Norman bought it at auction for £58,000. He owns his own roofing business
0:23:25 > 0:23:30'but is looking to move into his other career, property development, full-time.
0:23:30 > 0:23:33'Luckily, he knew what he was getting into.'
0:23:33 > 0:23:36It does, at first glance, look to be in a right old state.
0:23:36 > 0:23:39Do you think that works in your favour?
0:23:39 > 0:23:42Yes, I think so. I think it would probably put quite a few people off.
0:23:42 > 0:23:48But most of the people that have a good knowledge of the building trade would see it's mostly cosmetic.
0:23:49 > 0:23:54'Cosmetic does seem a bit of an understatement for what this house has suffered.'
0:23:54 > 0:23:57# In the big, black smoke
0:23:58 > 0:24:02# In the big, black smoke
0:24:04 > 0:24:08'So, it's just ten weeks later, and judging by the outside,
0:24:08 > 0:24:11'I'm guessing there's quite a transformation inside.'
0:24:11 > 0:24:15# Wow, wow, wow, wow
0:24:15 > 0:24:17# Wow, wow
0:24:17 > 0:24:20# Unbelievable
0:24:20 > 0:24:25'The sitting room was the source of the fire, but is now unrecognisable
0:24:25 > 0:24:29'with freshly plastered walls and a lighter colour scheme.
0:24:29 > 0:24:32'UPVC double-glazed windows have been installed here
0:24:32 > 0:24:35'and throughout the property.
0:24:36 > 0:24:39'Due to the level of damage inflicted by the fire,
0:24:39 > 0:24:42'all the electrics in the house were replaced.
0:24:45 > 0:24:50'Through to the back is the kitchen, which is now unrecognisable from before.'
0:24:52 > 0:24:54In here was very badly smoke damaged.
0:24:54 > 0:24:58All the units were quite old, so we decided to replace the whole kitchen.
0:24:58 > 0:25:02New radiators, new central heating boiler, which originally was upstairs.
0:25:02 > 0:25:08And we're very pleased with the way it's turned out. It's brightened it up and made a nice job of it.
0:25:11 > 0:25:15'A nice job indeed. The transformation continues upstairs,
0:25:15 > 0:25:18'starting with the staircase itself.
0:25:20 > 0:25:24'Both bedrooms have been brought back to life, replastered and painted.
0:25:26 > 0:25:32'There are new windows, radiators and doors.
0:25:32 > 0:25:37'The nightmare that had been the bathroom is now clean and contemporary
0:25:37 > 0:25:41'with brand new fixtures and fittings.
0:25:41 > 0:25:46'So that's the interior renovations. How about the exterior?'
0:25:46 > 0:25:50OK, outside was very badly smoke damaged.
0:25:50 > 0:25:54The windows had melted and the brickwork was badly marked.
0:25:54 > 0:26:00So we steam-cleaned the brickwork and generally cleaned all the front up,
0:26:00 > 0:26:04added new porches to the front and the side, just to brighten the property up,
0:26:04 > 0:26:08with turf and the stone paths, as you can see.
0:26:08 > 0:26:13'Norman really has achieved so much with this development in difficult circumstances.
0:26:13 > 0:26:16'And those are reflected in the name he's given it.'
0:26:16 > 0:26:20We're going to call it Molly's Cottage, cos unfortunately, my mum passed away
0:26:20 > 0:26:25a couple of days after we filmed the first part unexpectedly,
0:26:25 > 0:26:29so just in her memory, really. She was a big influence on all her children
0:26:29 > 0:26:34and I just wanted to do that in her memory more than anything.
0:26:40 > 0:26:44'Molly's Cottage also had a garden that needed attention.
0:26:44 > 0:26:47'Originally piled high with rubbish, this has now been cleared
0:26:47 > 0:26:50'to reveal perhaps more than just a garden.'
0:26:51 > 0:26:56We took an awful lot of rubbish off here. There was sheds and all sorts.
0:26:56 > 0:27:00We took 80 tonnes of rubbish off here.
0:27:00 > 0:27:05When we cleared it, we thought we've probably got a plot big enough to have a small detached house,
0:27:05 > 0:27:08a similar size to the one we've just renovated.
0:27:08 > 0:27:13So that's what we've done. We've got an unofficial opinion from Telford and Wrekin, it was quite positive,
0:27:13 > 0:27:17and over the next fortnight, we're going to apply for full planning consent
0:27:17 > 0:27:24for a detached dwelling with off-road parking for this new house and the property next door.
0:27:24 > 0:27:29'Well, grand plans that could certainly make quite a few grand.
0:27:29 > 0:27:33'Norman's confident that the proposed tightening of regulations
0:27:33 > 0:27:36'on building on garden plots won't affect this project.
0:27:36 > 0:27:39'But did all this impact on his costs?'
0:27:39 > 0:27:44The original budget was £16,000, 16 to 20,
0:27:44 > 0:27:48and it came in just under the top end of the budget at about £19,500.
0:27:48 > 0:27:52'So just within budget. It seems as though Norman has realised
0:27:52 > 0:27:56'the full potential of this property and there could be healthy profits.
0:27:56 > 0:28:00'We asked a couple of local estate agents for their thoughts.'
0:28:02 > 0:28:07It's a lovely property. I think the guy's done a fantastic job considering the state it was in.
0:28:07 > 0:28:12Throughout he's used contemporary fittings, it's very modern,
0:28:12 > 0:28:14nice and light, so it should be pretty popular.
0:28:17 > 0:28:22First impressions, nice quality finish, there are nice touches with door furniture,
0:28:22 > 0:28:25stainless steel handles, good quality sanitary fittings.
0:28:25 > 0:28:27Overall, a nice job.
0:28:28 > 0:28:31'Norman bought the place for £58,000
0:28:31 > 0:28:34'and has spent just under £20,000 renovating it.
0:28:34 > 0:28:37'So with a total spend of almost £78,000,
0:28:37 > 0:28:39'what kind of profit could he be looking at?'
0:28:39 > 0:28:45In the current market, I think you'd probably be looking in the region of £80,000 to £85,000.
0:28:45 > 0:28:50I would go to the market today, in its current state, at £95,000.
0:28:50 > 0:28:5595 is more like it, I think. The 80 to 85 sounds far too cheap.
0:28:56 > 0:29:02'Let's hope so, otherwise the profit Norman could make is only a little over £2,000.
0:29:02 > 0:29:05'What would it be worth as a rental?'
0:29:05 > 0:29:09I'd expect roughly around £475 per calendar month.
0:29:09 > 0:29:14I would suggest in the region of £500 to £525 per calendar month.
0:29:14 > 0:29:16That's exactly what we were thinking.
0:29:16 > 0:29:21'Good. But how about the ace up Norman's sleeve, the garden plot?
0:29:21 > 0:29:26'On its own and with planning permission, it will be worth around £40,000.
0:29:26 > 0:29:30'He reckons his build costs for a two-bedroom house would be around 50 grand.
0:29:30 > 0:29:32'How much could he sell it for?'
0:29:32 > 0:29:35A two-bedroom detached dwelling on that size of plot
0:29:35 > 0:29:38I think will achieve in the region of £100,000 to £105,000.
0:29:38 > 0:29:43Depending on finish, I think you could be looking anywhere in the region of £120,000.
0:29:43 > 0:29:46I was thinking around 105, something like that,
0:29:46 > 0:29:50but 120 sounds on the good side, so that would be good.
0:29:50 > 0:29:56'In this scenario, Norman's total spend would be around £128,000
0:29:56 > 0:29:58'and based on these valuations,
0:29:58 > 0:30:03'he could be in for a tidy pre-tax profit of £50,000 to £90,000.
0:30:03 > 0:30:06'He's certainly spotted a perfect opportunity here.'
0:30:06 > 0:30:11# Oh, there's a lot of opportunities
0:30:11 > 0:30:14# If you know when to take them
0:30:15 > 0:30:18'Fantastic news for Norman.
0:30:18 > 0:30:22'If planning permission comes through, he stands to clean up very satisfactorily here.
0:30:22 > 0:30:25'And he's not finished yet.'
0:30:25 > 0:30:28# You've got the brawn, I've got the brains
0:30:28 > 0:30:31# Let's make lots of
0:30:31 > 0:30:35We've bought another property in Wellington, about fives miles from here.
0:30:35 > 0:30:38It's very badly smoke damaged but no real fire damage,
0:30:38 > 0:30:43so it's just back to decoration as the plaster, hopefully, won't have to come off.
0:30:43 > 0:30:48'Norman expects to get informed approval from the local planners very soon,
0:30:48 > 0:30:55'then he can apply for full planning permission. He's confident it'll all go ahead. And we wish him luck.'
0:30:59 > 0:31:03'Today I've come to Shirebrook in Nottinghamshire.
0:31:03 > 0:31:06'It's a former pit town located in the Leen Valley.'
0:31:06 > 0:31:12This is Leen Valley Drive, a residential part of Shirebrook. Looks fairly pleasant.
0:31:12 > 0:31:16I'm here to see a house which on the face of it looks absolutely marvellous.
0:31:16 > 0:31:19Three-bedroom, modern-built semi-detached.
0:31:19 > 0:31:23Had a guide price of £68,000. What could possibly be wrong?
0:31:24 > 0:31:26Wait and see.
0:31:26 > 0:31:30# Suspicion torments my heart
0:31:30 > 0:31:34# Suspicion keeps us apart
0:31:34 > 0:31:37'From the outside, first impressions are good.
0:31:37 > 0:31:41'The windows are all double-glazed, there's a drive and a modest front garden.
0:31:41 > 0:31:43'All very pleasant.
0:31:43 > 0:31:48'But with the average house on the street selling for around £105,000,
0:31:48 > 0:31:53'there must be a reason for that £68,000 guide price. Let's investigate.'
0:31:53 > 0:31:58What have we got? On the face of it, looks pretty good. Living room. Laminate flooring.
0:31:58 > 0:32:01Bay window, nice to have. Not sure about the fireplace.
0:32:01 > 0:32:04Possibly a little bit too grand for the style of house.
0:32:04 > 0:32:07But that's not a big problem.
0:32:07 > 0:32:11Through to the kitchen and, again, I actually quite like this little area.
0:32:11 > 0:32:16Lots of light from the windows, views out onto the garden and onwards.
0:32:16 > 0:32:18A useful dining area there.
0:32:18 > 0:32:21The kitchen itself, the units aren't brilliant
0:32:21 > 0:32:26but if you're renting the place out, you could get away with those.
0:32:26 > 0:32:29So all in all, downstairs,
0:32:29 > 0:32:33very practical, not too bad. So far.
0:32:33 > 0:32:37# Suspicion, why torture me?
0:32:38 > 0:32:42'Admittedly, that view from the kitchen is of an untidy stretch of ground
0:32:42 > 0:32:46'disguised as a garden. The shed has certainly seen better days.
0:32:46 > 0:32:48'However, it's all a reasonable size.'
0:32:51 > 0:32:55So, upstairs how does it fare? Well, not too bad.
0:32:55 > 0:32:59We've got a bathroom and loo, two double bedrooms and a box room.
0:32:59 > 0:33:03The carpet could do with replacing, but that's trivial. Needs a bit of paint.
0:33:03 > 0:33:06Again, fairly inexpensive and trivial.
0:33:06 > 0:33:08So, nope.
0:33:08 > 0:33:12Still nothing untoward to report.
0:33:12 > 0:33:16'The bathroom is pretty cramped, but the essentials are all there.
0:33:16 > 0:33:20'The two main bedrooms are spacious, although in need of redecoration.
0:33:22 > 0:33:27'As is the box room. There are radiators already fitted throughout.
0:33:27 > 0:33:33'So, all in all, this semi-detached built in 1981 has much to recommend it.'
0:33:36 > 0:33:42So what could possibly be wrong with this house? Well, it's the dreaded S word.
0:33:42 > 0:33:46Subsidence. I've been doing my research, talking to local estate agents,
0:33:46 > 0:33:49and I've discovered that this area, in particular this street,
0:33:49 > 0:33:53has got a history of subsidence due to the mining that went on in this area.
0:33:53 > 0:33:56And I've found out something really interesting.
0:33:56 > 0:33:59That is number 46.
0:33:59 > 0:34:02That is number 42.
0:34:02 > 0:34:05And the subsidence was so bad in number 44...
0:34:06 > 0:34:09..they had to knock it down.
0:34:09 > 0:34:12This house itself has had subsidence in the past
0:34:12 > 0:34:14but it's had remedial work to sort it out.
0:34:14 > 0:34:20But in today's market conditions, with mortgage lenders being so precise about what they'll lend on,
0:34:20 > 0:34:25it could give you a problem. If you're not prepared for it, you could find yourself in big trouble.
0:34:25 > 0:34:28'This house is now in good condition
0:34:28 > 0:34:32'but the history of the area will always impact on its value.
0:34:32 > 0:34:37'So to find out if this is a gold mine or just a hole in the ground,
0:34:37 > 0:34:40'I asked a local estate agent to shed some light.'
0:34:40 > 0:34:43With Shirebrook being a former colliery community,
0:34:43 > 0:34:46yes, there were some mining subsidence issues,
0:34:46 > 0:34:51in particular with this property. Directly to the side of it
0:34:51 > 0:34:56there is a geological fissure which activated round about 1991.
0:34:56 > 0:35:00There was quite a lot of money spent on this property with underpinning
0:35:00 > 0:35:05and then subsequent repairs by the Coal Board, who bought the property
0:35:05 > 0:35:07and undertook the repairs themselves.
0:35:07 > 0:35:12The knock-on effect is, because of the amount of works that would have been done,
0:35:12 > 0:35:17there is a possibility that this property is no longer mortgageable.
0:35:17 > 0:35:20'So whoever buys this probably needs to pay cash.
0:35:20 > 0:35:25'Does that make it a good buy-to-let proposition? If so, what kind of rental might it earn?'
0:35:25 > 0:35:29The property would be well-received to the rental market
0:35:29 > 0:35:33and I would be looking for £495 to £525 per calendar month.
0:35:33 > 0:35:36'If at some point the new owners decided to sell on,
0:35:36 > 0:35:39'what kind of price could they hope to achieve?'
0:35:39 > 0:35:44This particular property I would be looking to value in the region of £85,000.
0:35:44 > 0:35:48Because of its history, there may be problems with resale
0:35:48 > 0:35:51with the mortgage eligibility,
0:35:51 > 0:35:54and so I would suggest rental rather than resale.
0:35:56 > 0:36:00So, a nice enough house, for sure, but one that has a chequered history
0:36:00 > 0:36:04that could affect getting a mortgage and its resale value.
0:36:04 > 0:36:08So buyer beware, check out the area, read the legal pack
0:36:08 > 0:36:11and then let's see who bought it at the auction.
0:36:15 > 0:36:19Where do you want to be? Start me where you will. 74, may I suggest?
0:36:19 > 0:36:21Start me at 65, then.
0:36:21 > 0:36:24Make progress. 65,000.
0:36:24 > 0:36:2765 is bid. Thank you. At £65,000.
0:36:27 > 0:36:3066 to move it on. 66 is bid on the left.
0:36:30 > 0:36:33At £66,000. 67.
0:36:33 > 0:36:3567 is bid.
0:36:35 > 0:36:3768 is bid. At 68,000.
0:36:37 > 0:36:41At £68,000. I'll take the half if it'll help you.
0:36:41 > 0:36:4668 and a half. At 68 and a half. £69,000?
0:36:46 > 0:36:50£68,500 is the bid. 69 somewhere else?
0:36:51 > 0:36:54I've got you. Thank you. 69.
0:36:54 > 0:36:59At 69,000. 500. 69,500. 70 for you, sir?
0:36:59 > 0:37:0170,000.
0:37:01 > 0:37:03500?
0:37:03 > 0:37:06£70,000 is bid against you. 70 and a half?
0:37:06 > 0:37:10At £70,000, then. We're going to sell. 70 and a half.
0:37:10 > 0:37:1371. 71,500.
0:37:13 > 0:37:1572,000.
0:37:15 > 0:37:1872,500. 73,000.
0:37:18 > 0:37:2173,500?
0:37:21 > 0:37:23£73,000. 500.
0:37:23 > 0:37:2574 is bid.
0:37:25 > 0:37:29At 74. The bids are all yours. 74,500?
0:37:29 > 0:37:34At £74,000, we'll sell. Once, twice, third time.
0:37:34 > 0:37:38Second thoughts? Sold to you, sir, 74,000.
0:37:38 > 0:37:42'With that final bid of £74,000, the new owner is Lee.
0:37:42 > 0:37:47'He was born in Shirebrook and worked in the pits for 13 years until they closed.
0:37:47 > 0:37:53'He then moved away, but now he's returned and wants to embark on a career as a property developer.'
0:37:55 > 0:38:00- Lee, congratulations. - THEY LAUGH - Why do you want to buy the house?
0:38:00 > 0:38:05Well, I like the position it's in. I've lived in Shirebrook for a long time
0:38:05 > 0:38:09and I've always wanted a place up here.
0:38:09 > 0:38:14- What is it about Shirebrook that you like so much? - Well, it's where I was born and bred.
0:38:14 > 0:38:19Erm, I know more or less everyone that lives around this area.
0:38:19 > 0:38:23So why did you buy it? Is it for you to live in or an investment?
0:38:23 > 0:38:28Well, both. Investment, I'm going to live in it,
0:38:28 > 0:38:33but it was up at the auction and the price it was going for,
0:38:33 > 0:38:38- I thought it was time to buy, and this was the perfect property to get.- Right.
0:38:38 > 0:38:40So you know about the area, then?
0:38:40 > 0:38:44- You know about the history of subsidence in properties in this area, then?- Yeah.
0:38:44 > 0:38:51It doesn't worry me. Cos I think anything can be sorted. The pit's been shut over ten years now.
0:38:51 > 0:38:53I think the ground has probably settled.
0:38:53 > 0:38:56If there was subsidence in this property, we'd have seen it by now.
0:38:56 > 0:39:03'When the Shirebrook pit closed, Lee moved to Whitby and retrained as a bus driver.
0:39:03 > 0:39:05'He spent seven years living and working in York,
0:39:05 > 0:39:09'but then suffered some ill health that meant a change of direction.'
0:39:10 > 0:39:15About a year ago, I discovered I'd got a bit of a brain tumour.
0:39:15 > 0:39:20- A bit of a brain tumour? - A brain tumour, which stopped me from driving.
0:39:20 > 0:39:25So now, I've thought, well, sell my house in York, which has gone up quite a lot,
0:39:25 > 0:39:32and buy a property hopefully to renovate, sell on, and try and make a living.
0:39:32 > 0:39:36So what happened on the whole health front?
0:39:36 > 0:39:39Well, it's been took out now and I've been given the all-clear.
0:39:39 > 0:39:44I'm generally on the mend again. Got to wait a couple of years to get my licence back.
0:39:45 > 0:39:49And, er, take it from there, decide what to do then.
0:39:49 > 0:39:54- I don't suppose any problems you'd encounter here could be anything in comparison, really.- Nothing can. No.
0:39:54 > 0:39:59- Did you buy this with cash, then? - I did, yeah.- So you didn't have to get a mortgage?
0:39:59 > 0:40:03- No.- No. That's great. What are you going to do with it, then?
0:40:03 > 0:40:09Generally, erm, everything what you can see in it, at the moment, is going.
0:40:09 > 0:40:13New floorings everywhere, new kitchen, take the bathroom out,
0:40:13 > 0:40:17retile the bathroom and put the bathroom back in cos it's a new bathroom.
0:40:17 > 0:40:23And, erm, the garden, probably turf it all, pebble it. I'm not sure yet.
0:40:23 > 0:40:30- Fantastic! So, what kind of budget have you got?- Roughly between £8,000 and £10,000 should do it.
0:40:30 > 0:40:37- Will you do a lot of the work yourself?- Yeah. I'd say, probably 70 percent of it.- Right.- Yeah.
0:40:37 > 0:40:39So in terms of timescales?
0:40:39 > 0:40:44- Probably about eight weeks. Something like that.- To get it all sorted.
0:40:44 > 0:40:49- And then the idea is that you move into it?- Yeah. Yeah. - Well, we wish you the best,
0:40:49 > 0:40:54and delighted that you're fully recovered health-wise. Good luck with this.
0:40:56 > 0:41:02Well, there you go. Lee giving a poignant reminder that, compared to your health,
0:41:02 > 0:41:08any problems that you may encounter when it comes to a property are trifling in comparison.
0:41:08 > 0:41:14We wish him all the best with the renovation and you can find out how he gets on later in the show.
0:41:18 > 0:41:24Well, time and tide wait for no man. And in the property world, time usually means money.
0:41:24 > 0:41:28So let's go back and see how that time, and cash, has been spent.
0:41:32 > 0:41:36'We've returned to Hythe in Kent, where this three-bed semi-detached
0:41:36 > 0:41:41'sold at auction for £160,000, to David and his wife Carol.
0:41:41 > 0:41:44'David's a professional joiner and carpenter
0:41:44 > 0:41:49'with 45 years experience in the building trade under his belt and Carol's an accountant.
0:41:49 > 0:41:55'Together they plan to develop properties, David doing the heavy work, Carol in charge of the books.
0:41:55 > 0:42:00'However, his experience was put to the test as soon as he saw this place.'
0:42:00 > 0:42:04What did you think when you went outside and you saw all the uneven terrain,
0:42:04 > 0:42:07you've got lots of steps, walls crumbling, the walls are bowed down there.
0:42:07 > 0:42:10What did you think when you saw all that?
0:42:10 > 0:42:13- We didn't know about the walls, did we?- We didn't know about the walls.
0:42:13 > 0:42:18When we viewed the property the grass was quite a lot higher,
0:42:18 > 0:42:23and to be perfectly honest, we didn't see it. I didn't see it.
0:42:23 > 0:42:29'The garden was hiding evidence of movement, as were the lintels in the upstairs bedroom.
0:42:29 > 0:42:33'That could have been because this street is built over a fault line.
0:42:34 > 0:42:38# These little earthquakes
0:42:39 > 0:42:44'All in all, the property was in quite a state.'
0:42:44 > 0:42:48# Then you came
0:42:48 > 0:42:50# To save the day
0:42:50 > 0:42:54'We've come back four months later to see how David got on.'
0:42:54 > 0:42:57# Now I'm not alone
0:42:57 > 0:43:01# It's like I'm born again
0:43:01 > 0:43:06# It's like I can breathe again
0:43:06 > 0:43:10# And the sun is coming up
0:43:10 > 0:43:12# For the very first time
0:43:14 > 0:43:18'The main hallway used to be a vivid throwback to the 1970s.
0:43:18 > 0:43:25'But now, on entering, I'm just amazed by how much light he's poured into the former dingy den.
0:43:33 > 0:43:37'Upstairs, the old bathroom had definitely seen better days,
0:43:37 > 0:43:40'but now it's been brought bang up-to-date
0:43:40 > 0:43:44'with a cool, contemporary look, featuring modern fixtures and fittings.
0:43:50 > 0:43:56'All three bedrooms, which had been in dire need of redecoration, have had a total makeover,
0:43:56 > 0:44:01'with new plaster, paint, carpets, and UPVC windows throughout.
0:44:04 > 0:44:10'Signs of movement have been eradicated as David got to the bottom of the problem.'
0:44:11 > 0:44:16Folkestone had an earth tremor or a quake, whatever you want to call it,
0:44:16 > 0:44:20two or three years ago. And it probably stems from that.
0:44:20 > 0:44:25At the end of each lintel, and I had this all the way through the house,
0:44:25 > 0:44:30there was something like a 40 mil gap
0:44:30 > 0:44:34that had been filled with some plaster substance,
0:44:34 > 0:44:37that was very soft and you could just rake out,
0:44:37 > 0:44:43which I did, cleaned it out, made good block work where it needed.
0:44:43 > 0:44:46It's all OK.
0:44:47 > 0:44:53'The house now has a solid structure and David has seen no further evidence of movement anywhere else.
0:44:55 > 0:44:58'Downstairs, the original kitchen was completely dilapidated.
0:44:58 > 0:45:02'It even had holes in the floor where rats were coming and going.
0:45:04 > 0:45:07'Now the kitchen has been completely transformed,
0:45:07 > 0:45:09'with new units...
0:45:11 > 0:45:13'..worktops...
0:45:15 > 0:45:20'..and appliances, complemented by bold tiling,
0:45:20 > 0:45:22'and new oak laminate flooring.
0:45:24 > 0:45:27'Thankfully, this is now no place for a rat.
0:45:28 > 0:45:33'The sitting room has also been brought back to life.
0:45:33 > 0:45:37'And the 70s fireplace removed.
0:45:38 > 0:45:42'And where once the garden had been trying to get in through the door,
0:45:42 > 0:45:46'now there are patio doors that lead out into the garden.
0:45:46 > 0:45:50# I built this garden for us
0:45:50 > 0:45:54'And that derelict garden has been cleared and re-turfed.'
0:45:54 > 0:45:56# I built this garden for us
0:45:56 > 0:46:01'Al fresco dining is now an option on the new decking...'
0:46:01 > 0:46:03# I built this garden for us
0:46:03 > 0:46:07'..with lovely views over the Hythe rooftops towards the sea.'
0:46:07 > 0:46:10# I built this garden for us
0:46:11 > 0:46:14'At the bottom of the garden, the steps and walls
0:46:14 > 0:46:19'that used to show worrying indications of movement have been rebuilt and restored.'
0:46:19 > 0:46:25When we first took it over, where I'm walking now, you couldn't see.
0:46:25 > 0:46:31We've discovered that there was a path here, which extended down to the steps here,
0:46:31 > 0:46:37which were all higgledy-piggledy, out of level, all been taken out and renewed.
0:46:37 > 0:46:41The garden itself was a total mess,
0:46:41 > 0:46:47brambles, small ash trees growing here, there and everywhere.
0:46:47 > 0:46:49Just running wild, really.
0:46:49 > 0:46:53So we've levelled it, turfed it,
0:46:53 > 0:46:55put the laurels in,
0:46:55 > 0:46:58just really made it look as nice as we can.
0:46:58 > 0:47:02# In this garden
0:47:02 > 0:47:05# This lovely garden
0:47:05 > 0:47:08'An incredible transformation and a real labour of love.
0:47:08 > 0:47:12'But has the high quality of finish taken its toll on the outlay?'
0:47:12 > 0:47:16First off, we had a budget of £30,000.
0:47:16 > 0:47:21On the house, no problems at all.
0:47:21 > 0:47:25I've overspent on the garden.
0:47:25 > 0:47:28But, again, I'm using that as a marketing tool.
0:47:28 > 0:47:32Because if you don't, it's going to be off-putting.
0:47:32 > 0:47:38You want something to entice people into the inside of the house, get them over the threshold.
0:47:40 > 0:47:42'Good thinking, David.
0:47:42 > 0:47:48'He bought the place for £160,000. He spent 30 grand on the house.
0:47:48 > 0:47:55'And a further £1,500 on the garden, making a total of just over £190,000.
0:47:55 > 0:47:59'So, how much value could he have added?'
0:48:00 > 0:48:03It's a very saleable property because of the fact that
0:48:03 > 0:48:08it's near the sea, and views, and near the town centre.
0:48:08 > 0:48:11The garden is really super. I saw it before they did the work.
0:48:11 > 0:48:14It's been a total transformation.
0:48:14 > 0:48:17You've got the decking right the way across the back,
0:48:17 > 0:48:22fabulous south-facing garden, take full advantage of that sun in the summer.
0:48:22 > 0:48:29The property has changed beyond belief. It's quite incredible to see the changes that can be made.
0:48:29 > 0:48:34Last time we were here, when you came inside the property there was evidence of rats,
0:48:34 > 0:48:36it had been damp, everything needed doing.
0:48:36 > 0:48:41Of course, now we come back to what is almost a brand new home.
0:48:41 > 0:48:43It's quite astounding.
0:48:44 > 0:48:47'Very positive comments on the development.
0:48:47 > 0:48:50'How much do they think it could be worth if sold?'
0:48:50 > 0:48:53I would recommend marketing the property
0:48:53 > 0:48:59in the region of £235,000 to £240,000.
0:48:59 > 0:49:04I think we'd be recommending it came to the market at £250,000.
0:49:04 > 0:49:09Oh! The 250 surprises me, to be honest.
0:49:09 > 0:49:12It's a nice surprise though, isn't it? HE LAUGHS
0:49:12 > 0:49:15'It certainly is!
0:49:15 > 0:49:20'Taking the more optimistic valuation, that's a pre-tax profit of just short of £60,000,
0:49:20 > 0:49:24'minus the usual selling fees. What about rental?'
0:49:24 > 0:49:27We'd be looking at a rental value of
0:49:27 > 0:49:31between about £800 to £825 per calendar month.
0:49:31 > 0:49:35The property would easily rent out for a price in the region of
0:49:35 > 0:49:39around about £750 per month.
0:49:39 > 0:49:42More or less exactly what we thought.
0:49:42 > 0:49:47So we must have done our sums right. HE LAUGHS
0:49:47 > 0:49:52'Since filming, David has accepted an offer of £234,000,
0:49:52 > 0:49:55'a profit of over 40 grand,
0:49:55 > 0:49:58'and is looking for his next investment property.
0:50:00 > 0:50:04'I've got to hand it to you, David, you've done an amazing job.
0:50:04 > 0:50:07'Congratulations!'
0:50:13 > 0:50:17'We're back in Shirebrook, where this three-bed end-of-terrace
0:50:17 > 0:50:21'was sold at auction for £74,000 to Lee.
0:50:21 > 0:50:25'He used to be a bus driver, but decided to go into property developing
0:50:25 > 0:50:27'after recovering from a brain tumour.
0:50:27 > 0:50:32'As a former resident of Shirebrook, he knows the area's mining history,
0:50:32 > 0:50:37'its associated issues with subsidence, and the impact on property values.'
0:50:37 > 0:50:39So, you know about the area, then?
0:50:39 > 0:50:44- Oh, yeah.- You know about the history of subsidence of properties in this area?
0:50:44 > 0:50:48It doesn't worry me because I think anything can be sorted.
0:50:48 > 0:50:54The pit's been shut over ten years now. And I think the ground has probably settled.
0:50:56 > 0:50:58'Let's hope Lee is correct on that.
0:50:58 > 0:51:02'His plan was to upgrade the property by redecorating,
0:51:02 > 0:51:06'installing a new kitchen and clearing the garden.
0:51:08 > 0:51:12'We've come back six months later to see how he's got on.
0:51:13 > 0:51:17'The living room was in fairly good condition, but needed updating.
0:51:17 > 0:51:20'Lee has achieved this by decorating the place,
0:51:20 > 0:51:24'laying a neutral carpet, and installing a modern gas fire.
0:51:32 > 0:51:38'Through in the kitchen is where Lee has done most work, completely changing the layout.'
0:51:41 > 0:51:47The main door as you walked in was there. And it had a breakfast bar going along here
0:51:47 > 0:51:50which meant there were no units there.
0:51:50 > 0:51:56So what I decided to do, so we could have a square kitchen, was to brick the main door up,
0:51:56 > 0:52:01brick the pantry up, and put the main doors over that way.
0:52:01 > 0:52:05So I could have the kitchen fitted like a square.
0:52:05 > 0:52:11'Outside the kitchen, through the new patio doors, Lee has totally cleared the garden.
0:52:11 > 0:52:16'So he can really enjoy those fantastic views.'
0:52:16 > 0:52:19# I can see for miles and miles
0:52:19 > 0:52:23# And miles and miles
0:52:23 > 0:52:26# And miles
0:52:26 > 0:52:32'Upstairs, Lee has completely redecorated the three bedrooms in neutral colours.
0:52:36 > 0:52:43'In the bathroom, the suite has stayed the same, but it's all been retiled and a new floor laid.
0:52:46 > 0:52:51'Now that most of the work has been completed after many gruelling six and seven day weeks,
0:52:51 > 0:52:56'has Lee decided whether he's going to live here, rent it out or sell the property?'
0:52:56 > 0:52:59I'm going to stay in it for a while.
0:52:59 > 0:53:03It's been six months, but it's been six months hard work,
0:53:03 > 0:53:07so it's time to sit back and relax for a while.
0:53:07 > 0:53:10And then look at it in probably three months' time.
0:53:13 > 0:53:19'So now the job's almost over, how did he get on with his budget of £8,000 to £10,000?'
0:53:19 > 0:53:24The budget is, it's gone round about 10,000 or 11,000,
0:53:24 > 0:53:29but that's because we've had to buy all the tools to do the work with.
0:53:29 > 0:53:33Skill saw and things like that, they don't come cheap.
0:53:33 > 0:53:37'They certainly don't, but they are an investment
0:53:37 > 0:53:40'if Lee goes on to develop more properties in the future.
0:53:46 > 0:53:51'Lee bought the house for £74,000 and has spent £11,000 on the renovation,
0:53:51 > 0:53:55'making a total outlay of around £85,000.
0:53:55 > 0:53:58'How have his efforts affected the value?
0:53:58 > 0:54:02'We asked a couple of local estate agents for their opinions.'
0:54:05 > 0:54:08The layout, with removing the breakfast bar, has been good.
0:54:08 > 0:54:12Whether the removal of the door will work in future, we'll wait and see.
0:54:16 > 0:54:21The property has undergone a recent course of improvements in terms of redecoration.
0:54:21 > 0:54:24It offers light and spacious accommodation.
0:54:24 > 0:54:27I like the view from the upstairs bedroom window.
0:54:27 > 0:54:32'So in the current market, how much could Lee rent it out for?'
0:54:32 > 0:54:38Similar properties in this area we are currently renting out for £450 to £475 per calendar month.
0:54:38 > 0:54:44For this type of property, I would be looking between £475 and £495 per calendar month,
0:54:44 > 0:54:47and yes, there is a good demand at this moment in time.
0:54:47 > 0:54:51'That's a potential yield of between six and seven percent.
0:54:51 > 0:54:55'It would make the house a nice little earner. Is Lee tempted?'
0:54:55 > 0:54:58No, I would not rent it out, erm,
0:54:58 > 0:55:04and if I did, it would be for about £550. I know I could get that for it.
0:55:06 > 0:55:11'If Lee doesn't want to rent the house out, he either needs to live here or sell it on.
0:55:11 > 0:55:16'And that could be the problem. This area has suffered from subsidence in the past.
0:55:16 > 0:55:19'But he's confident he's done his research.'
0:55:19 > 0:55:23I've looked into the history of this property and it's been underpinned,
0:55:23 > 0:55:27it's had all the work done. So there's no problem with it.
0:55:27 > 0:55:32The property does have subsidence history, and I would need to know fully the facts concerning that
0:55:32 > 0:55:35before I could commit to the mortgageability of the property.
0:55:35 > 0:55:40I honestly believe that this property would not sell easily
0:55:40 > 0:55:43on the open market, if at all, because of its history.
0:55:46 > 0:55:51'That subsidence problem doesn't want to go away. And even if Lee is right,
0:55:51 > 0:55:56'these previous issues can sometimes stick, rendering the property unmortgageable.
0:55:56 > 0:56:00'But what about cash purchaser, which is how Lee bought it at auction.
0:56:00 > 0:56:04'What could its resale value be in that case?'
0:56:04 > 0:56:10Assuming it has to be for a cash buyer, we'd be looking at offers probably in the region of £70,000.
0:56:10 > 0:56:15As a cash buyer at this moment in time, I would be looking £80,000 to £85,000.
0:56:15 > 0:56:20Obviously they haven't done their homework at all, where I have.
0:56:20 > 0:56:24I did my homework before I bought it.
0:56:24 > 0:56:30I mean, I've got a friend three doors up, his house is up for £115,000.
0:56:33 > 0:56:38'Lee plans to live here for the moment so these valuations are not really an issue for him.
0:56:38 > 0:56:43'He's ended up with a lovely new home in the town where he grew up.
0:56:43 > 0:56:47'And he's gained vital experience for his future developments.'
0:56:52 > 0:56:55Well, we hope you've enjoyed today's property portfolio.
0:56:55 > 0:57:02- Join us next time for more brave buyers' stories on Homes Under The Hammer.- We'll see you then.- Goodbye.
0:57:03 > 0:57:07Subtitles by Red Bee Media Ltd
0:57:07 > 0:57:11E-mail subtitling@bbc.co.uk
0:57:11 > 0:57:11.