0:00:02 > 0:00:04Hello! Whether you're looking for a lucrative development
0:00:04 > 0:00:07or your dream home, the auction room could have something for you.
0:00:07 > 0:00:09Yes, even in these challenging times,
0:00:09 > 0:00:12there are still bargains to be had IF you avoid the pitfalls.
0:00:12 > 0:00:15So follow us, and we'll show you the ropes.
0:00:40 > 0:00:45A nod of the head, a sly wink or a wave of the catalogue.
0:00:45 > 0:00:48It doesn't matter how you bid, as long as you get the auctioneer's attention.
0:00:48 > 0:00:52Well, today, we meet some people who did just that.
0:00:52 > 0:00:55Which properties caught their eye? Let's take a look.
0:00:56 > 0:01:01It's a wet day in Yorkshire, but it's also wet inside this one-bedroomed house.
0:01:01 > 0:01:05Look at that. That's actually water coming in.
0:01:05 > 0:01:11By the looks of those steps up to this two-bedroomed first-floor flat in Kent...
0:01:11 > 0:01:13..It would need a potential owner with a bit of energy.
0:01:13 > 0:01:15I'm moving on up!
0:01:16 > 0:01:19This semi in Birmingham doesn't look great, but...
0:01:19 > 0:01:24..As a canvas on which you could paint the property of your desires,
0:01:24 > 0:01:26it's a good starting point.
0:01:26 > 0:01:28All these properties have been sold at auction,
0:01:28 > 0:01:33and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:33 > 0:01:35Sold to you, sir, well done.
0:01:37 > 0:01:42This is Todmorden on the Lancashire/Yorkshire border.
0:01:42 > 0:01:46It's a former mill town - one of the reasons for that is that it rains quite a lot here.
0:01:46 > 0:01:48In fact, it rains cats and dogs.
0:01:48 > 0:01:51Talking of dogs, look at this fantastic bit of topiary.
0:01:51 > 0:01:54What do you reckon that is? It's a Scottie dog.
0:01:54 > 0:01:58'A super-sized dog for such a small town, admittedly,'
0:01:58 > 0:02:03as only around 12,000 people actually live in Todmorden.
0:02:06 > 0:02:12But it's an ideal commuter town with easy access to Burnley, Rochdale and Manchester.
0:02:12 > 0:02:14So what was on offer at the auction?
0:02:14 > 0:02:18Well, it was a one-bedroomed mid-terrace.
0:02:18 > 0:02:22It had a guide price of £40,000 to £45,000.
0:02:22 > 0:02:24It looks pretty cute from the outside.
0:02:26 > 0:02:30This property dates back 100 to 150 years
0:02:30 > 0:02:34and is typical of the area's high-density terraced housing.
0:02:34 > 0:02:39But at least with this one, you have your own little green space out front
0:02:39 > 0:02:41and, as it's high up on the edge of town,
0:02:41 > 0:02:44the house has excellent views over the Calder Valley.
0:02:47 > 0:02:49So what have we got?
0:02:49 > 0:02:54Well, basically, just one main room downstairs. Not a bad size, though.
0:02:54 > 0:02:56Nice high ceilings as well, which means it doesn't feel
0:02:56 > 0:03:00too claustrophobic, and a big fireplace, which will be absolutely lovely.
0:03:00 > 0:03:03Slightly disappointing, though, the kitchen,
0:03:03 > 0:03:08because it's absolutely tiny and not a lot of space to play with.
0:03:08 > 0:03:13I mean, I would think about putting some kind of a breakfast bar in here, open it up.
0:03:13 > 0:03:18That, I think, would definitely be a major improvement.
0:03:18 > 0:03:23Apart from that, I don't know, a slap of paint on the walls, sort out the floor.
0:03:23 > 0:03:25It's not bad.
0:03:27 > 0:03:33So up here, you've got a bathroom and loo there and then the one bedroom.
0:03:33 > 0:03:38Not a bad size, and the best thing - absolutely glorious view out of the window.
0:03:38 > 0:03:41I'd buy the house for that. That's wonderful.
0:03:41 > 0:03:44A real fire in here, which is always a nice thing to have in a bedroom.
0:03:44 > 0:03:46But that doesn't look good.
0:03:46 > 0:03:48It's actually...
0:03:48 > 0:03:50Look at that.
0:03:50 > 0:03:52That's actually water coming in.
0:03:52 > 0:03:55That needs some investigating.
0:03:55 > 0:03:58# Dip, drip, drip... #
0:03:58 > 0:04:04For that, I need to go up one more floor, into the loft space.
0:04:04 > 0:04:05# ..Goes the water... #
0:04:07 > 0:04:10OK, now that's interesting. That looks like a new beam to me,
0:04:10 > 0:04:14and...a few access issues here!
0:04:14 > 0:04:20It also looks like new underfelt, so my guess is this is a completely new roof.
0:04:20 > 0:04:24But there you go. That's the problem. It looks like the flashing
0:04:24 > 0:04:27around the chimney breast there hasn't been done properly,
0:04:27 > 0:04:30because you can see water still coming through.
0:04:30 > 0:04:34Now, what you want to do in this instance is see if you can track down
0:04:34 > 0:04:38the people who did the roof, cos presumably they had some kind of guarantee, and maybe it went
0:04:38 > 0:04:41with the property, not with the person who actually paid for the work.
0:04:41 > 0:04:43That would be my first port of call. Find out who did it,
0:04:43 > 0:04:46see if you can track them down and get them to come and repair it, because it is not actually going
0:04:46 > 0:04:51to be a big job, but if it's left, it's going to cause a lot of damage.
0:04:51 > 0:04:55# Drip drip drip Goes the water... #
0:04:55 > 0:04:59From the top of the house to the bottom now.
0:04:59 > 0:05:03I've descended to the bowels of this place and its surprise basement.
0:05:03 > 0:05:05Oh, look at this!
0:05:05 > 0:05:09A little cellar. How unusual.
0:05:09 > 0:05:11I love this. This old stone slab in here.
0:05:11 > 0:05:16A bit of an added bonus. I guess...what can you do with it? Wine cellar, perhaps?
0:05:16 > 0:05:20Stick a flat-screen TV at the end over there and turn it into a sort of media room.
0:05:20 > 0:05:23Either way, a nice little bonus, really.
0:05:25 > 0:05:27There are a few things lacking in this property.
0:05:27 > 0:05:31There's no central heating or any insulation.
0:05:31 > 0:05:36The electrics are antique, and it's only partly double-glazed.
0:05:36 > 0:05:42I invited a local estate agent to give me his thoughts on this place.
0:05:42 > 0:05:44First impressions coming to the property,
0:05:44 > 0:05:47it's in a superb location on the outskirts of town.
0:05:47 > 0:05:50Lovely elevated position, but it does need some attention.
0:05:50 > 0:05:53The property was built as a one-bedroom back-to-back terraced property.
0:05:53 > 0:05:56A lot of people in the area have converted the lofts
0:05:56 > 0:05:59into one or two bedrooms, and that's the ideal thing to do with it.
0:05:59 > 0:06:04So if all that work is done and the loft is converted into a second bedroom,
0:06:04 > 0:06:08what kind of rental income could this property pull in?
0:06:08 > 0:06:11For a one-bedroom property, about £300 per calendar month.
0:06:11 > 0:06:16For a two-bedroomed, about £350, maybe £375, if it's in very good condition.
0:06:17 > 0:06:22If put back on the market after that level of refurbishment, what could it fetch?
0:06:22 > 0:06:27Fully refurbished with two bedrooms, it would be in the region of £70,000.
0:06:27 > 0:06:32What if it was left as a one-bedroomed house?
0:06:32 > 0:06:37A one-bedroomed would restrict its market, and you're probably looking more £65,000 to early 60s.
0:06:37 > 0:06:40Those figures are very reasonable.
0:06:40 > 0:06:44But I believe this property does have its own invaluable charm,
0:06:44 > 0:06:49and that might just have captured someone's heart.
0:06:49 > 0:06:54Well, it may be small, but it's perfectly formed, and I really like this little place,
0:06:54 > 0:06:56not least because of that fantastic view.
0:06:56 > 0:06:58A bit of work to do to sort out the roof,
0:06:58 > 0:07:03but, actually, for that £40,000 to £45,000 guide price, a great one to go for.
0:07:03 > 0:07:05Let's see who spotted it at the auction.
0:07:08 > 0:07:1030,000 - that sounds reasonable enough.
0:07:10 > 0:07:1330,000 straight in, we've got it.
0:07:13 > 0:07:1632. 32,000 we're looking for.
0:07:16 > 0:07:2132. I've got 32, 34 then.
0:07:21 > 0:07:2534 I've got. 36,000. And I've got it.
0:07:25 > 0:07:2938,000. I've got it. 40,000.
0:07:29 > 0:07:31Against you, madam. 40,000.
0:07:31 > 0:07:3341,000 then now.
0:07:33 > 0:07:37I've got 40,000, a lady sat on my right-hand side.
0:07:37 > 0:07:41At £40,000. Have we any advance on £40,000?
0:07:41 > 0:07:44I'm going to sell it at 40.
0:07:44 > 0:07:47Sorry, last minute, 41,000.
0:07:47 > 0:07:5042 then. 42. 43.
0:07:50 > 0:07:52I've got 42...
0:07:52 > 0:07:56and-a-half. 42-and-a-half. Are you going to give me 43?
0:07:56 > 0:08:0143 we've got, then. 43-and-a-half.
0:08:01 > 0:08:0444...and-a-half.
0:08:06 > 0:08:09I've got 44-and-a-half, I've got. 44-and-a-half now.
0:08:09 > 0:08:1545,000 then. 45-and-a-half.
0:08:15 > 0:08:16I've got it.
0:08:16 > 0:08:1846,000 I need.
0:08:18 > 0:08:20And I've got it. And a half?
0:08:21 > 0:08:26I've got 46,000 and I'm going to sell at 46,000. 46-and-a-half.
0:08:26 > 0:08:29You're out. It's with you, then, sir.
0:08:29 > 0:08:33For the first time then at 46,500.
0:08:33 > 0:08:35Second time. If we're all done?
0:08:35 > 0:08:37Third and final time, then.
0:08:37 > 0:08:40Sold to you, sir, well done.
0:08:40 > 0:08:43With that bid of 46,500,
0:08:43 > 0:08:47Kendal is the new owner this one-bedroomed terraced house.
0:08:47 > 0:08:50Unable to afford anywhere in his native London,
0:08:50 > 0:08:54he moved north nine months ago to make a new life for himself here.
0:08:54 > 0:08:58He hopes this will be the home of his dreams.
0:08:58 > 0:09:02- Kendal, very nice to meet you. Congratulations.- Thank you.
0:09:02 > 0:09:03So why did you want to buy this place?
0:09:03 > 0:09:08Because I had a long time of not owning a property
0:09:08 > 0:09:13and wondering to myself would I ever be able to get to own a property.
0:09:13 > 0:09:17And one day the opportunity came up, so I thought, "Well,
0:09:17 > 0:09:22"I'll see how much I can get together," and went along to the auction.
0:09:22 > 0:09:26Stuck my hand up a few times, found myself with a house.
0:09:27 > 0:09:32Kendal wanted to relocate here, as not only could he not afford the London prices,
0:09:32 > 0:09:39but he also wanted to do his work as a group therapist in more relaxing outdoor surroundings.
0:09:39 > 0:09:44# Moving Just keep moving... #
0:09:44 > 0:09:49I was working previous to here with people who were getting over
0:09:49 > 0:09:53addiction problems for a number of years
0:09:53 > 0:09:57and I would say to them on a regular basis, if you really want to make
0:09:57 > 0:10:00a change, you have to go and make that change.
0:10:00 > 0:10:02- So you were giving this advice to other people?- Yeah.
0:10:02 > 0:10:08I just heard myself giving advice and then starting to wonder, how much am I taking of my own advice?
0:10:08 > 0:10:14It's kind of important to me to walk that walk as well as just talk it.
0:10:14 > 0:10:18I was pretty anxious. I found London a very sticky place.
0:10:18 > 0:10:22Really hard to leave. I love London, you know, I'm born and bred there
0:10:22 > 0:10:27and know it really well, but I kind of realised that nothing would change unless I made the change.
0:10:27 > 0:10:33So buying this house isn't simply a physical move for Kendal - it really is a life-changing one.
0:10:35 > 0:10:40There'll be plenty to keep his mind and body busy up here with all the work that's needed.
0:10:42 > 0:10:45So tell me what you're going to do to the house.
0:10:45 > 0:10:47I'm not certain, actually.
0:10:47 > 0:10:52What I do know is I'm going to have to strip everything back and I'm going to have to start again
0:10:52 > 0:10:55and then re-plaster, re-wire,
0:10:55 > 0:10:57electrics, plumbing.
0:10:57 > 0:11:02I want to put some kind of wood-burner in the fireplace.
0:11:02 > 0:11:06I would like to put a Velux window in the roof.
0:11:06 > 0:11:10Beyond that, it's going to be a question of looking at floor types,
0:11:10 > 0:11:14stairs, bathroom...kitchen.
0:11:14 > 0:11:17I'd like to try and do the bathroom and kitchen myself as much as possible.
0:11:17 > 0:11:20I really want to keep my costs down.
0:11:20 > 0:11:24My main costs are going to be the walls and redoing them,
0:11:24 > 0:11:30but fundamentally they're stone and they're solid, and I've been told that it's a good shell.
0:11:30 > 0:11:34For me, fundamentally, I want to get it to a level where I can I have live in it,
0:11:34 > 0:11:37so get some warmth in it, get the walls done,
0:11:37 > 0:11:42and then it will be about, you know, doing the additions, really.
0:11:42 > 0:11:45So how long do you think it will be before you're actually in here?
0:11:45 > 0:11:50I'm looking at three, three-and-a-half months before I'm living here...I'd like to be.
0:11:50 > 0:11:54How much do you think it's going to cost to get the place sorted out?
0:11:54 > 0:11:56Well, I'm pretty naive about all of this, actually.
0:11:56 > 0:11:58I've been told it will be somewhere...
0:11:58 > 0:12:02somebody said you really don't need to spend more than 7,000 on it.
0:12:02 > 0:12:05Somebody else said 20,000.
0:12:05 > 0:12:08So I'm kind of wondering in between.
0:12:08 > 0:12:13Really, it's going to come down to a point of how much have I got spare each month?
0:12:13 > 0:12:15How much can I spend on it, really?
0:12:15 > 0:12:18I'm hoping in the region of 10, I think.
0:12:18 > 0:12:21Well, I hope it all turns out great for you. Congratulations.
0:12:21 > 0:12:24- Thank you.- I'm looking forward to seeing how you get on.- Thank you.
0:12:26 > 0:12:32So Kendal finally taking his own advice, but how is he going to get on?
0:12:32 > 0:12:37It's a big move from London to the beauty of the Lancashire/Yorkshire border.
0:12:37 > 0:12:40You can find out later in the show.
0:12:44 > 0:12:47Today I'm in Kent, in the bustling town of Orpington.
0:12:47 > 0:12:51It is just 30 minutes train journey from London,
0:12:51 > 0:12:56and for first-time buyers, it's a popular alternative to nearby Bromley.
0:12:56 > 0:13:00Well, I'm here on the border of St Mary Cray and Orpington
0:13:00 > 0:13:06and I'm told there's some local debate as to which town this street belongs to.
0:13:06 > 0:13:08Now, I'm here to see this first-floor flat.
0:13:08 > 0:13:13It requires some refurbishment and it had a guide price of just £90,000 plus.
0:13:13 > 0:13:16Judging by those steps, it will need a potential owner with a bit of energy.
0:13:16 > 0:13:19I'm moving on up!
0:13:19 > 0:13:21# Cos I'm moving on up
0:13:21 > 0:13:23# You're moving on out
0:13:23 > 0:13:25# Moving on up
0:13:25 > 0:13:27# Nothing can stop me
0:13:27 > 0:13:30# Moving on up Moving on up. #
0:13:30 > 0:13:32Well, that's it - my exercise done for the day!
0:13:32 > 0:13:37I don't think those stairs will put too many people off, because they're not actually that steep.
0:13:37 > 0:13:43Now, looking at the flat, first impressions, it's not in bad order, although it is a little bit dated.
0:13:43 > 0:13:46You've got a kitchen there. You could completely do with new cupboards.
0:13:46 > 0:13:49You've got a really nice-sized bedroom through there.
0:13:49 > 0:13:53The bathroom, I think you'd need to renovate that or even strip it out and start again.
0:13:53 > 0:13:56The second bedroom's through there, a good size. And this is the lounge.
0:13:56 > 0:14:03Now, there are some rather interesting decorative touches, don't you think?
0:14:03 > 0:14:05Like these little borders here.
0:14:05 > 0:14:08You have got lots of fussy cornicing up there.
0:14:08 > 0:14:12I think once you've stripped this place back and got it in neutral order,
0:14:12 > 0:14:17it could look quite good, because, overall, it's a nice big space.
0:14:17 > 0:14:19You could put a sofa here, a sofa there.
0:14:19 > 0:14:23The telly could go in the corner. You've got a lovely big window, letting lots of natural light in.
0:14:23 > 0:14:28Do you know what? For a starter home, I think this is a really good flat.
0:14:28 > 0:14:31Overall, the flat is in good condition.
0:14:31 > 0:14:35Taking each room separately, the carpets and wallpaper
0:14:35 > 0:14:40in the bedrooms are dated and need removing, but the rooms themselves are a good size.
0:14:42 > 0:14:44The kitchen certainly needs attention.
0:14:44 > 0:14:48The layout should be altered and the units replaced.
0:14:48 > 0:14:52And the bathroom is crying out to be modernised.
0:14:52 > 0:14:58However, despite all these requirements, the flat comes with two huge benefits.
0:14:58 > 0:15:01All the windows have been replaced with new double-glazed units,
0:15:01 > 0:15:04and there's a fitted and functioning central heating system,
0:15:04 > 0:15:08so this could instantly become a warm and cosy home for someone.
0:15:08 > 0:15:13As a developer, I'm thinking what I could do to boost the value of this flat.
0:15:13 > 0:15:16As I mentioned earlier, the decor could be updated.
0:15:16 > 0:15:19I would fit a new kitchen and bathroom, although do be careful
0:15:19 > 0:15:23about spending too much if your intention is to sell on quickly.
0:15:23 > 0:15:25If you were planning to live here yourself,
0:15:25 > 0:15:28then budget is not going to be as much of a priority.
0:15:28 > 0:15:34However, you still need this flat to be desirable, should you wish to sell it on at a later stage.
0:15:34 > 0:15:37Now, I would also recommend plastering these walls as well,
0:15:37 > 0:15:40or skimming them at least, to cover up this Artex.
0:15:40 > 0:15:45And of course, while you're at it, I'd get rid of those picture borders next door,
0:15:45 > 0:15:48because they're not to everybody's taste.
0:15:48 > 0:15:52But something all prospective purchasers would be interested in
0:15:52 > 0:15:56is that this property does have a garden, though it is rather overgrown.
0:15:56 > 0:16:01What a treat to have a garden attached to a first-floor flat.
0:16:01 > 0:16:05You know, it's such a bonus to have some outside space when your accommodation is all on one floor.
0:16:05 > 0:16:08I might also recommend getting the lawnmower out!
0:16:08 > 0:16:11Although it's not terribly private out here,
0:16:11 > 0:16:16you could get some shrubs in and create your own urban oasis.
0:16:21 > 0:16:24With a competitive guide price of 90,000,
0:16:24 > 0:16:28this maisonette should have had a lot of attention at the auction.
0:16:28 > 0:16:32I asked a local estate agent to give me some idea of its potential value.
0:16:32 > 0:16:34It's a good size for first-time buyers,
0:16:34 > 0:16:37it's close to the station, and you've also got bus routes nearby.
0:16:37 > 0:16:44This obviously needs a bit of TLC, but the double glazing's here, the central heating's in.
0:16:44 > 0:16:49You've really just got to renew the kitchen and bathroom, redecorate and you're done.
0:16:49 > 0:16:54- # Seems so easy - It's so easy, it's so easy... #
0:16:54 > 0:16:57That all seems like a pretty easy process.
0:16:57 > 0:17:02So if the new owner was to follow that advice, what kind of rental could they expect?
0:17:02 > 0:17:08Once renovated, this property will fetch in the region of £725 per calendar month.
0:17:08 > 0:17:11That's the figure that we do achieve for the other properties in the road.
0:17:11 > 0:17:15There seems to be a ready market for rental in this area,
0:17:15 > 0:17:18so that's good, and the rate isn't that bad either.
0:17:18 > 0:17:21Bearing in mind the guide price of £90,000,
0:17:21 > 0:17:23what could it be worth if it was sold?
0:17:23 > 0:17:28The property, once it's refurbished, will, I think,
0:17:28 > 0:17:31with the market as it is now, which is rising,
0:17:31 > 0:17:35be worth in the region of 150,000 to 155,000.
0:17:35 > 0:17:38Given its good condition, the costs of renovating here
0:17:38 > 0:17:43shouldn't be excessive, so there could be a healthy profit.
0:17:44 > 0:17:49Considering you can get to London in 30 minutes if you go from nearby St Mary Cray Station,
0:17:49 > 0:17:52then this property puts itself in the enviable position
0:17:52 > 0:17:57of appealing to commuters, investors and owner-occupiers.
0:17:57 > 0:18:00I don't think there's too much work to do here, and the guide price
0:18:00 > 0:18:04of 90 grand will have made this flat very attractive indeed.
0:18:04 > 0:18:08So let's find out how much competition there was for this place when it went to auction.
0:18:11 > 0:18:16Lot 67, guided at £90,000 plus. £90,000 to start me.
0:18:16 > 0:18:1890 I have. And 92 do I see?
0:18:18 > 0:18:20£90,000 in the room.
0:18:20 > 0:18:22At 90. 92 I have. 95.
0:18:22 > 0:18:25100 I have.
0:18:25 > 0:18:28£100,000 on my left-hand side.
0:18:28 > 0:18:31110 is bid and 112.
0:18:31 > 0:18:34112 I have. 115 is bid. 118.
0:18:34 > 0:18:38118 is bid. And 120. 120 is bid.
0:18:38 > 0:18:40125 is bid. In a fresh place, 126.
0:18:40 > 0:18:47At £126,000, in the room, lady's bid...127 do I see?
0:18:47 > 0:18:52127 in a fresh place. 128 I'm bid. 129.
0:18:52 > 0:18:54You're out by the exit sign.
0:18:54 > 0:18:57At £128,000 I'm bid.
0:18:57 > 0:18:58At 129, do I see?
0:18:58 > 0:19:00Is that a bid, sir?
0:19:00 > 0:19:06129 is bid. 130. 130 I have. 132, no. 130 I have.
0:19:06 > 0:19:10The lady's bid. I'm selling for the first time at 130,000.
0:19:10 > 0:19:13Lady's bid at 130 for the second time.
0:19:13 > 0:19:16130 for the third and final time.
0:19:16 > 0:19:20Are you all done? Sold at 130. Thank you very much.
0:19:20 > 0:19:25Husband and wife Fred and Jackie bought the flat for £130,000.
0:19:25 > 0:19:31Although they paid 40,000 over the guide price, I think it's still a bit of a bargain.
0:19:31 > 0:19:36They run a family timber business nearby and they bought this place to help out their son, Stephen.
0:19:36 > 0:19:43I'll be speaking to him a bit later, but first I had to find out more about their reasons for buying.
0:19:43 > 0:19:45What's the story?
0:19:45 > 0:19:50Well, my son's moved into a flat just up the road with a friend,
0:19:50 > 0:19:53and as I was driving past, I saw this one come up for auction...
0:19:53 > 0:19:56I thought, we'll give it a go and see what happens.
0:19:56 > 0:19:58A sniff of a bargain, was it that?
0:19:58 > 0:20:00- I guess it was.- I think so, yes.
0:20:00 > 0:20:04Was it the guide price that lured you in? £90,000, that's relatively cheap.
0:20:04 > 0:20:06That's cheap for this area.
0:20:06 > 0:20:10I think we were realistic that was a starting price. We knew that.
0:20:10 > 0:20:12We knew we'd have to pay more for it.
0:20:12 > 0:20:17When you first saw this flat prior to the auction, what did you think? You walked in and thought...?
0:20:17 > 0:20:23Well, my thoughts were you could live in it straightaway at a push.
0:20:23 > 0:20:30We're going to do the kitchen and the bathroom because I think that's a must and then go from there.
0:20:30 > 0:20:33We were pleased with it. We couldn't see much wrong with it.
0:20:33 > 0:20:35It was local to us.
0:20:35 > 0:20:41He would be able to sort of get into work easy, because we're only 10, 15 minutes away from his office,
0:20:41 > 0:20:43so he will be able to do that
0:20:43 > 0:20:48so, yeah, it just fitted with all the little boxes that we had ticked, yeah.
0:20:54 > 0:20:58Fred and Jackie have a pretty laid back attitude to this flat.
0:20:58 > 0:21:05They recognise that it doesn't need a lot done it, but they have allowed themselves a leisurely six months
0:21:05 > 0:21:07for whatever they do do.
0:21:07 > 0:21:11Jackie, what sort of budget are you looking at to do the bits and pieces that you need to do here?
0:21:11 > 0:21:13We thought about £5,000
0:21:13 > 0:21:18regarding the kitchen and the bathroom and the decor.
0:21:18 > 0:21:21And there is no major... The wiring has been done
0:21:21 > 0:21:25and the central heating is fine and the windows are OK,
0:21:25 > 0:21:29so it is just those two, so we're hoping it will manage everything.
0:21:29 > 0:21:31It will hopefully be simple.
0:21:31 > 0:21:36Let's hope that's the case and that nothing troubles this easygoing couple.
0:21:36 > 0:21:39But what about the man who is the focus of all this?
0:21:39 > 0:21:44I caught up with Stephen when he came round to cast an eye over his new home.
0:21:44 > 0:21:46Stephen, how does it feel to have your own pad?
0:21:46 > 0:21:51It's absolutely wonderful. I'm immensely pleased getting that first rung on the property ladder.
0:21:51 > 0:21:55- It feels very, very exciting.- So what's your situation at the moment?
0:21:55 > 0:21:57Why can't you move in and renovate straightaway?
0:21:57 > 0:22:01Well, I moved in with my friend James and we sort of moved in not too long
0:22:01 > 0:22:05before we got the flat, so I said to him I'll move in for a year
0:22:05 > 0:22:09and help share the financial cost, so we've got a bit of a wait to go and
0:22:09 > 0:22:14in the meantime I can get the place up and running and looking good and stuff like that.
0:22:14 > 0:22:16Are you itching to get in here really?
0:22:16 > 0:22:20Yeah, I'm itching to get in here because it'll just be me and I think I'll enjoy that.
0:22:20 > 0:22:23Are you ready for your own space now?
0:22:23 > 0:22:24Definitely. Definitely.
0:22:24 > 0:22:28It's been lovely meeting you and good luck with the renovations.
0:22:28 > 0:22:30- Thank you very much.- Thank you.
0:22:30 > 0:22:34Jackie and Fred are certainly generous parents.
0:22:34 > 0:22:38Stephen is going to have a great home here with his first step up on the property ladder.
0:22:38 > 0:22:40Six months though to do this flat up,
0:22:40 > 0:22:43it should be more like six weeks.
0:22:43 > 0:22:47Let's see if they're still as relaxed when we come back later on in the programme.
0:22:49 > 0:22:53Coming up - things aren't as bad as they look at this place in Birmingham.
0:22:53 > 0:22:58What you've got here is a potentially really good, solid little house.
0:22:58 > 0:23:04Has the renovation of this two bedroom flat in Kent gone in the right direction?
0:23:04 > 0:23:08I'm really pleased with it, it's nice and modern and clean and quite sharp.
0:23:10 > 0:23:14But first, has this house in Yorkshire turned into a home?
0:23:14 > 0:23:18It's really, a nice feel of a place to live in.
0:23:21 > 0:23:28We're back in Yorkshire and that view belongs to this one bedroom terraced house.
0:23:28 > 0:23:34Kendal bought it at auction for £46,500 after uprooting himself from his native London.
0:23:34 > 0:23:40I was pretty anxious. I found London a very sticky place, really hard to leave.
0:23:40 > 0:23:44I love London. I'm born and bred there and know it really well,
0:23:44 > 0:23:48but I kind of realised that nothing would change unless I made the change.
0:23:56 > 0:24:01So has the journey from London to Yorkshire been the change Kendal was looking for?
0:24:01 > 0:24:05We caught up with him ten months later to find out.
0:24:06 > 0:24:10One thing for sure, the house has definitely gone through a transformation.
0:24:12 > 0:24:16In the living space downstairs, Kendal has stripped back
0:24:16 > 0:24:19all the walls and re-plastered and redecorated.
0:24:20 > 0:24:25Upstairs, the bedroom is a much more pleasant place to sleep.
0:24:25 > 0:24:29It really does feel like this is now the relaxed home Kendal was after.
0:24:29 > 0:24:34The toilet has been gutted and re-plumbed with a modern suite installed.
0:24:34 > 0:24:39But one of the biggest changes has been in that gloomy attic.
0:24:39 > 0:24:43Kendal has now created a fresh, bright space here
0:24:43 > 0:24:47with a new sky light which is perfect to enjoy that view.
0:24:47 > 0:24:53Well, all of this has been re-plastered and repainted,
0:24:53 > 0:24:55of course and I've created...
0:24:55 > 0:25:00Taken down the doors which were here and put up new ones
0:25:00 > 0:25:05to allow this whole room to actually be used for a room rather than a bed, which it was before.
0:25:05 > 0:25:07Put this Velux in as well.
0:25:07 > 0:25:10It gives a great view from up here and allows all the light in.
0:25:10 > 0:25:13Before, it didn't have any light at all.
0:25:13 > 0:25:19It's really nice now to be able to, on a sunny day like today, to be able to sort of get
0:25:19 > 0:25:23the light and the air, whereas before it was literally a torch
0:25:23 > 0:25:25trying to find where you were.
0:25:25 > 0:25:30So I really feel as though this room is created into a proper room now.
0:25:30 > 0:25:33And it's just what that attic needed.
0:25:33 > 0:25:35It looked more like a dungeon before,
0:25:35 > 0:25:38but now it's light and spacious.
0:25:47 > 0:25:49That dark kitchen has also been lightened up
0:25:49 > 0:25:54because the wall has gone making it now a part of the open-plan living room.
0:25:54 > 0:25:58Well, there was a wall here
0:25:58 > 0:26:03and I took that down to open out the kitchen into the front room.
0:26:03 > 0:26:06It's a very small area, the kitchen anyway,
0:26:06 > 0:26:09but it's letting the light shine through as much as possible
0:26:09 > 0:26:12and I wanted to have both windows
0:26:12 > 0:26:15creating as much light in here as possible.
0:26:15 > 0:26:16I think I've done that.
0:26:16 > 0:26:20So the house is brighter, but is it any drier?
0:26:20 > 0:26:25Remember that leak in the ceiling? Well, thankfully, that's been fixed.
0:26:25 > 0:26:27I've warmed to the house, first of all
0:26:27 > 0:26:33and then I've covered over the plaster once I saw that the damp was slightly retreating
0:26:33 > 0:26:37and since then I haven't had problems through the plaster.
0:26:37 > 0:26:40I'm slightly waiting to see.
0:26:40 > 0:26:45I checked the roof and the walls, the outer walls
0:26:45 > 0:26:50so I've kind of checked that it's sealed and I was waiting for this winter.
0:26:50 > 0:26:53It hasn't been as wet as it could have been, but so far it's holding up.
0:26:53 > 0:26:57So that bedroom won't be turning into a swimming pool after all.
0:26:57 > 0:26:59Thank goodness for that!
0:27:00 > 0:27:04Kendal still has work to do around the house, but he's in no rush.
0:27:04 > 0:27:10Doing some of the jobs himself means he can do it at a relaxed pace, which suits him just fine.
0:27:12 > 0:27:15But for the trickier bits, like putting in that new wood burning stove,
0:27:15 > 0:27:18Kendal wisely called in the professionals.
0:27:19 > 0:27:23Well, I've had to get proper professionals in to do
0:27:23 > 0:27:28the professional kind of things generally, electricians, plumbers
0:27:28 > 0:27:34some carpentry, and the rest I've generally done myself.
0:27:34 > 0:27:37Remember, it's always best to use the professionals
0:27:37 > 0:27:41if there's any part of a renovation you're not qualified to do.
0:27:52 > 0:27:56With most of the work now completed, how is the budget going?
0:27:56 > 0:28:04I think that probably about £12,000 has been spent.
0:28:04 > 0:28:06Yeah. I was hoping it would be about 10.
0:28:06 > 0:28:12I've probably got a few hundred for the kitchen
0:28:12 > 0:28:15and then that will really be the costs of it,
0:28:15 > 0:28:17and you know, I'm pretty satisfied with that.
0:28:20 > 0:28:23So budget wise, Kendal wasn't far off the mark.
0:28:23 > 0:28:26What do two local estate agents make of the place?
0:28:29 > 0:28:32I'm very impressed with it. It's a very characterful property
0:28:32 > 0:28:35and he's put a real cottage feel into this house
0:28:35 > 0:28:38which is normally a back-to-back terrace house.
0:28:38 > 0:28:41The property has been improved considerably since I last came.
0:28:41 > 0:28:44It needed refurbishing from top to bottom.
0:28:44 > 0:28:47A lot of the plaster work has been repaired or replaced.
0:28:47 > 0:28:50This wall here, fantastic stone work.
0:28:50 > 0:28:51It really has come on a treat.
0:28:51 > 0:28:56I think all the things that Kendal has done to the property are excellent.
0:28:56 > 0:28:58I like the wood burning stove.
0:28:58 > 0:29:01It's a great focal point in the lounge when you come in,
0:29:01 > 0:29:03the tiles with the underfloor heating
0:29:03 > 0:29:06and the real cottagey feel to this property is excellent.
0:29:08 > 0:29:11What do the experts think of Kendal's change to the downstairs?
0:29:11 > 0:29:15Opening up the kitchen into that living room?
0:29:15 > 0:29:19Modern fashion at the moment is to have open-planned living, cooking,
0:29:19 > 0:29:21just open-planned living space.
0:29:21 > 0:29:24It should work very, very well, just wants finishing off.
0:29:24 > 0:29:28I think open-plan living is the way that a lot of builders and developers are going
0:29:28 > 0:29:32and for a property such as this if he'd left it as two separate rooms,
0:29:32 > 0:29:35it may have made it feel to be quite cramped and dark
0:29:35 > 0:29:40so in opening up the kitchen and the living space, I think it's a good move.
0:29:41 > 0:29:46Once the work has been finished, what could the value of the house be?
0:29:46 > 0:29:48Remember, he bought it for £46,500.
0:29:48 > 0:29:54So to make Kendal a mint, it would now need to be worth over £59,000 at least.
0:29:54 > 0:30:00If it was going on the market today, I'd expect an asking price in the region of £75,000 to £80,000.
0:30:00 > 0:30:04This property would be marketed between £80,000 and £85,000.
0:30:04 > 0:30:06I think they've undervalued it.
0:30:08 > 0:30:13I only say that really cos of how much...how nice it is to live in.
0:30:13 > 0:30:18You know, I think... if I compare it to a few other places which I know around here
0:30:18 > 0:30:25and which are kind of similar... And it could be because I built it around me, as it were,
0:30:25 > 0:30:29but it's really... a really nice feel of a place to live in, certainly for me.
0:30:29 > 0:30:37It sounds like the move from London to Todmorden has been well worth it and not just financially.
0:30:38 > 0:30:41# You made me so
0:30:41 > 0:30:44# Very happy
0:30:44 > 0:30:46# I'm so glad you
0:30:46 > 0:30:50# Came into my life. #
0:30:50 > 0:30:54I'm pretty contented here, actually. It's interesting. It's a good size for me.
0:30:54 > 0:30:56I like the size of the town and I like the fact that I've got a view
0:30:56 > 0:31:02and I like the fact that I'm in a quiet place and I like the fact I've built my own house and done it
0:31:02 > 0:31:05how I want it, and it feels how I want it to feel,
0:31:05 > 0:31:08and, you know, who wouldn't be contented if you did that, really?
0:31:12 > 0:31:16I've come to Great Barr, a suburb of Birmingham.
0:31:16 > 0:31:21It sits close to the M6 and M5, making it well-situated for travel to West Bromwich,
0:31:21 > 0:31:26Walsall or Birmingham city centre itself, which is just 15 minutes away.
0:31:26 > 0:31:31There are plenty of shops in the area, and if you fancy a gamble away from the world of property,
0:31:31 > 0:31:33there's a greyhound stadium nearby too.
0:31:36 > 0:31:41Well, I'm in Great Barr to see a traditional three-bedroomed semi-detached house.
0:31:41 > 0:31:44The street it's on looks OK, but sadly the house itself...
0:31:44 > 0:31:51urgh, well, something tells me this is going to be more than a lick of paint job to sort it out.
0:31:51 > 0:31:54Still, it had a guide price of just £70,000 to £75,000.
0:31:54 > 0:31:56So it's got to be worth a look.
0:32:00 > 0:32:03The boarded-up windows don't exactly ooze kerb appeal...
0:32:05 > 0:32:07..but you can't judge a book by its cover.
0:32:07 > 0:32:10After all, there may be delights inside.
0:32:12 > 0:32:17Thing about boarded-up houses is you never know quite... what you're going to find
0:32:17 > 0:32:21when you come through the front door - completely derelict.
0:32:21 > 0:32:24Completely horrible, mould, damp, yuck.
0:32:24 > 0:32:27Not in this case, actually.
0:32:27 > 0:32:30Probably boarded up just to stop vandalism,
0:32:30 > 0:32:32cos actually the property itself doesn't look too bad.
0:32:32 > 0:32:34It's a bit tired and dated. A fairly standard layout.
0:32:34 > 0:32:37Stairs up to the bedrooms there.
0:32:37 > 0:32:41You've got a front sitting room and through to the rear sitting room,
0:32:41 > 0:32:43it's not bad at all - I've seen a lot worse, that's for sure.
0:32:43 > 0:32:49An obvious place there, I'd say, for putting some big double doors and then steps down into the garden,
0:32:49 > 0:32:54and straightaway I'm thinking the kitchen is too small, so knock this wall down, take it out.
0:32:54 > 0:32:57I mean look at this. I'm already thinking about ways you could improve this place.
0:32:57 > 0:33:04I like it. I mean, as a canvas on which you could paint the property of your desires,
0:33:04 > 0:33:06it's a good starting point.
0:33:06 > 0:33:10# Painter man Painter man... #
0:33:12 > 0:33:16Open-plan kitchen/dining areas are very popular,
0:33:16 > 0:33:19so by knocking these two rooms together,
0:33:19 > 0:33:21there'd be an excellent space for entertaining.
0:33:21 > 0:33:25I wonder what treasures there are upstairs.
0:33:25 > 0:33:29Upstairs, a fairly classic layout continues. Three bedrooms.
0:33:29 > 0:33:31A small box room there. Two doubles.
0:33:31 > 0:33:35You've got a bathroom that's not huge, in need of refurbishment as well.
0:33:35 > 0:33:37It's all stuff that just needs a bit of time and effort
0:33:37 > 0:33:41and won't cost you a fortune and you can make such a difference do this house.
0:33:41 > 0:33:43And here upstairs, it's quite interesting, it isn't boarded up,
0:33:43 > 0:33:46which is great news, cos it means you can get to see the rear garden,
0:33:46 > 0:33:49and that looks like a descent size too,
0:33:49 > 0:33:54so, all in all, what you've got here is a potentially really good, solid, little house.
0:33:57 > 0:34:00The garden at the back provides a welcome bit of green space,
0:34:00 > 0:34:03although it appears pretty neglected at the moment.
0:34:03 > 0:34:07Looking back at the house, you can see it's a substantial building,
0:34:07 > 0:34:12but there are signs of movement in the rear bay window that need investigating.
0:34:14 > 0:34:18The three bedrooms are well-proportioned, but in a poor state,
0:34:18 > 0:34:22since the building has been unoccupied for some time.
0:34:22 > 0:34:25This house was put into the auction by the local council,
0:34:25 > 0:34:29who sold it under strict refurbishment conditions.
0:34:31 > 0:34:33To get an idea of who the potential could be here,
0:34:33 > 0:34:35I invited a local estate agent
0:34:35 > 0:34:38to look it over and give me his opinion.
0:34:40 > 0:34:45From the point of view of the property, I would say that
0:34:45 > 0:34:47it's a decent size.
0:34:47 > 0:34:51It's got, you know, three bedrooms upstairs with a bathroom.
0:34:51 > 0:34:55Downstairs here, you've got two reception rooms and a small kitchen.
0:34:55 > 0:35:01This particular property is part of the council's empty home policy.
0:35:01 > 0:35:05With these properties, they must be modernised within a period
0:35:05 > 0:35:12of 12 months, and to this end, the council sell the properties leasehold
0:35:12 > 0:35:16with a peppercorn ground rent and a clause in the lease indicating
0:35:16 > 0:35:20that it all had to be modernised to a reasonable standard.
0:35:20 > 0:35:23Once refurbished to a good level, this boarded-up property could be
0:35:23 > 0:35:25brought back into use,
0:35:25 > 0:35:31and the peppercorn ground rent of £10 to £12 a year would hardly break the bank.
0:35:33 > 0:35:37What could the rental value of this place be?
0:35:37 > 0:35:39Rental on the property,
0:35:39 > 0:35:44I would imagine would be in the region of 550, 595 per calendar month.
0:35:44 > 0:35:51The property had a guide price of 70 to 75,000, but after being renovated and modernised,
0:35:51 > 0:35:55how much could it fetch on the open market?
0:35:55 > 0:35:56Once renovated,
0:35:56 > 0:36:03the property would be worth in the region of £125,000 to £130,000.
0:36:05 > 0:36:08Well, this is a classic auction property.
0:36:08 > 0:36:11The exterior appearance may well put people off,
0:36:11 > 0:36:13but, you know, get through that front door,
0:36:13 > 0:36:15and it's not a bad house, which could make a lovely family home.
0:36:15 > 0:36:19Yes, it needs a new bathroom, new kitchen, new wiring, central heating,
0:36:19 > 0:36:24but, you know what, with that £70,000 to £75,000 guide price, I still think there's money in it.
0:36:24 > 0:36:27So let's see who went for it when it went under the hammer.
0:36:27 > 0:36:29At this auction, the vendor,
0:36:29 > 0:36:33i.e. the council, insisted the deposit was paid with cleared funds,
0:36:33 > 0:36:36so potential purchasers had to organise a banker's draft
0:36:36 > 0:36:39or building society cheque before bidding.
0:36:39 > 0:36:41Where shall we start?
0:36:41 > 0:36:4550. Do you have a draft, sir? At 50. At 50 I'm bid.
0:36:45 > 0:36:49At 60. You got a draft, sir? At 60. 70, sir?
0:36:49 > 0:36:5065?
0:36:50 > 0:36:5465. 70, 70. And 71...71.
0:36:54 > 0:37:0072, 73, is it? 74. Is it 5? 75.
0:37:00 > 0:37:04Is it 6? 76. 77? I have £76,000.
0:37:04 > 0:37:07Where are we? 82. At 82.
0:37:07 > 0:37:0983?
0:37:09 > 0:37:13At £82,000, then, on the front. Are we all done?
0:37:13 > 0:37:17At £82,000, once, twice...
0:37:17 > 0:37:21New bid at 83. Do you have a bankers draft, sir?
0:37:21 > 0:37:23At 83. Is it 84?
0:37:23 > 0:37:28Do you have a draft, sir? At 84. Is it 85?
0:37:28 > 0:37:30At 85,000, sitting down.
0:37:30 > 0:37:32Is it 86, sir? No?
0:37:32 > 0:37:37At £85,000, then, sitting down. Are we all done?
0:37:37 > 0:37:39Once, twice, third and last time...
0:37:39 > 0:37:4286. 86, sir?
0:37:42 > 0:37:46Yeah? 86. At 87, sir?
0:37:47 > 0:37:4987.
0:37:49 > 0:37:5587. 88? No. At £87,000. One, two, three.
0:37:55 > 0:37:56Sold. Congratulations, sir.
0:37:56 > 0:37:59Well done and the best of luck with that property.
0:38:02 > 0:38:07With his bid of £12,000 over the upper guide price of 75,000,
0:38:07 > 0:38:11the new owner is Daniel, who works for the local council.
0:38:11 > 0:38:13This will be the first project in the development venture
0:38:13 > 0:38:16he's begun with a business partner.
0:38:16 > 0:38:20Their plan is buy up to three properties a year, refurbish and sell on.
0:38:20 > 0:38:23So what attracted them to this one?
0:38:23 > 0:38:25- Daniel, congratulations. - Thank you very much.
0:38:25 > 0:38:28You've got the house here. Tell me why you wanted to buy it.
0:38:28 > 0:38:33I very much like the area. Myself and my colleague have viewed a few properties in the area
0:38:33 > 0:38:37that are already completed and we know the market value is quite good.
0:38:37 > 0:38:38It's a good area for first-time buyers.
0:38:38 > 0:38:43And it's predominantly a privately owned area, so we don't have any real issues on that front.
0:38:43 > 0:38:45So you say your colleague - have you got a business relationship?
0:38:45 > 0:38:49- I've got a business partner who's helped fund it, and he's got a construction company...- Ooh!
0:38:49 > 0:38:53..so he's got the people to come in and do the work, which helps,
0:38:53 > 0:38:56so we're not paying exorbitant prices for tradesmen and so on.
0:38:56 > 0:39:01Great. It all adds to it. Tell me more about you. What do you do?
0:39:01 > 0:39:07- I work for the local authority, Birmingham City Council...- Oh, great! - Technical Services Officer.
0:39:07 > 0:39:11So my main role is looking after concrete blocks of flats,
0:39:11 > 0:39:16non-traditional housing, timber-frame, steel-frame, concrete, and so all the things
0:39:16 > 0:39:22that most surveyors wouldn't touch, myself and my colleagues get involved in multi-million-pound schemes.
0:39:22 > 0:39:26So this is fairly small fry, in comparison to the day-to-day, and pretty straightforward, hopefully.
0:39:26 > 0:39:30So how does your partnership work with your business partner?
0:39:30 > 0:39:36I'm very much the visionary behind the two, if you like, so I've got the end know-how,
0:39:36 > 0:39:42and my business partner is going to sort out the materials and the labour aspect of it and make sure
0:39:42 > 0:39:45that we're paying the right prices and that we're getting the materials on time
0:39:45 > 0:39:50and not holding the job up, so we can turn it around in the three months and hopefully sell it on.
0:39:50 > 0:39:55Daniel's insider knowledge will be crucial, as there are two key stipulations
0:39:55 > 0:39:58the new owner of this house has to fulfil.
0:39:58 > 0:40:02One is to ensure all the work is completed within 12 months.
0:40:02 > 0:40:06The other is that it has to comply with the council's decent homes standard.
0:40:06 > 0:40:12That means it has to be energy-efficient, use sustainable materials and be secure.
0:40:12 > 0:40:14Tell me what you're going to do to it.
0:40:14 > 0:40:19The plans are such as the wall we've got behind us into the kitchen, to knock that through,
0:40:19 > 0:40:22block off the kitchen door. The little bay window behind you,
0:40:22 > 0:40:25- we're going to take out and put French doors in.- Perfect.
0:40:25 > 0:40:29Open it up, kitchen/diner, strip back the doors, kitchen,
0:40:29 > 0:40:34bathroom, heating, re-wire, windows, roof line,
0:40:34 > 0:40:39- and basically get it back to a nice, clean, tidy, dry residence.- Right.
0:40:39 > 0:40:44- Up to decent specification.- OK. Any idea how much that's going to cost?
0:40:44 > 0:40:50Budgeting between 12,500 and 15,000, but likely to veer more towards the 15, to be realistic.
0:40:50 > 0:40:57That should give us a reasonable return of 15,000 or 20,000 before tax and fees.
0:40:57 > 0:40:59For three months' work, as we hope, that will be quite a nice return.
0:40:59 > 0:41:04Great, and this area specifically, with the street itself, is nice.
0:41:04 > 0:41:07- This is definitely the worst house on the street at the moment. - Yes, without a doubt.
0:41:07 > 0:41:11They're all privately owned, I believe. They all seem to be nicely kept.
0:41:11 > 0:41:14Tidy gardens. Well-looked-after houses.
0:41:14 > 0:41:16So have you done this kind of thing before?
0:41:16 > 0:41:19First time I've done one to sell on.
0:41:19 > 0:41:23I've bought properties myself to live in and done them up from scratch.
0:41:23 > 0:41:28I've had worse condition than this, but always with a view to living in it.
0:41:28 > 0:41:34So this is the first time I've got to rein back what we do and not put too much of a personal stamp on it.
0:41:34 > 0:41:37- Is that going to be hard? - I think it could be.
0:41:37 > 0:41:40We'll be looking at light fittings and kitchens with a view
0:41:40 > 0:41:45to what we like, and it should be obviously what's going to be saleable at the end.
0:41:45 > 0:41:48So what involvement on a day-to-day basis are you going to have?
0:41:48 > 0:41:52Most of the initial involvement is going to be the design aspect of it,
0:41:52 > 0:41:56sorting out what kitchen we're going to put in, what walls we're going to take out,
0:41:56 > 0:42:02the styles of windows etc. And then a background project management, and my colleague will run
0:42:02 > 0:42:06the day-to-day lads on the site, so the plasterers, plumbers, people like that.
0:42:06 > 0:42:09Once you've done this, then, what's next for you?
0:42:09 > 0:42:14- Back to the auction room, hopefully. - Is it?- As long as we don't get too far down the road
0:42:14 > 0:42:17with this one, money-wise, the intention is to do two or three a year
0:42:17 > 0:42:22as a sideline project and build a nice little portfolio of properties for sale.
0:42:22 > 0:42:26- Congratulations and good luck with it, and we look forward to seeing how you get on.- Thank you very much.
0:42:29 > 0:42:35Well, Daniel and his business partner have certainly got the expertise to make a success of this.
0:42:35 > 0:42:40The biggest issue is whether or not Daniel can not get too personally involved
0:42:40 > 0:42:43in how the restoration is done and overspend on that budget.
0:42:43 > 0:42:48Find out how they get on turning this place around later in the show.
0:42:51 > 0:42:55Well, our would-be property animals were certainly eager beavers when we left them.
0:42:55 > 0:42:57So they grab the bull by the horns?
0:42:57 > 0:42:59Let's go back and find out.
0:42:59 > 0:43:02Time to return to Orpington in Kent.
0:43:02 > 0:43:08Earlier in the programme, Fred and Jackie paid £130,000 for this first-floor flat.
0:43:08 > 0:43:13Their son, Stephen, was going to live in it once the renovation had been completed.
0:43:13 > 0:43:16The family run a timber business, and Stephen now works for that as well.
0:43:16 > 0:43:20So getting any wood needed won't be a problem here.
0:43:20 > 0:43:25Well, it's taken six months, but the flat is now finished.
0:43:25 > 0:43:26Stephen and his girlfriend moved in a month ago.
0:43:26 > 0:43:30We met Stephen and his mum and dad back at the property.
0:43:30 > 0:43:34Inside, the two-bedroomed flat has been decorated throughout.
0:43:34 > 0:43:38The smaller bedroom is now used as an office-cum-sewing room.
0:43:38 > 0:43:43In the main bedroom, there's now a mirrored wardrobe and a red feature wall.
0:43:43 > 0:43:48They went for a monochrome bathroom, which looks stylish.
0:43:50 > 0:43:55In the living room, the bay window has provided lashings of light.
0:43:55 > 0:43:58This really is a very well-presented property.
0:43:58 > 0:44:03They were in no hurry and had estimated six months, which proved exactly right.
0:44:03 > 0:44:06Did they hit any problems en route?
0:44:06 > 0:44:09There's always sort of little difficulties that you come across.
0:44:09 > 0:44:14And you expect those, but no major problems at all. Everything went OK.
0:44:14 > 0:44:16I think we were a little bit slow to start.
0:44:16 > 0:44:19We sort of dragged our feet at beginning and, as time went on,
0:44:19 > 0:44:22we sort of got the spark and then just really pushed ahead with it.
0:44:22 > 0:44:26We pretty much gutted it back to the original brickwork and built it up from there.
0:44:26 > 0:44:30Painted all the walls and got rid of all the Artex.
0:44:30 > 0:44:33Everything's had a lick of paint, so it's looking pretty sharp now.
0:44:33 > 0:44:35Sensibly, they employed skilled tradesmen for the bathroom
0:44:35 > 0:44:40and the kitchen installation, so the finish is top-notch.
0:44:40 > 0:44:43But the family have all mucked in as well.
0:44:43 > 0:44:48We've done quite a bit. We were here most days, poking our nose in, making sure everything was done correctly.
0:44:48 > 0:44:52If there was workmen here, doing the kitchen or the bathroom,
0:44:52 > 0:44:54cos they've always got questions to ask.
0:44:54 > 0:44:57Every room we've tackled, painting as you can probably see,
0:44:57 > 0:45:01yeah, just about everything, including the garden.
0:45:02 > 0:45:05The large garden is a real bonus for this flat.
0:45:05 > 0:45:10They've divided it in half down the middle with the ground-floor flat, but it was very overgrown.
0:45:13 > 0:45:18Yeah, we've done quite a bit of work in the garden - you know, changed all the fencing,
0:45:18 > 0:45:23put a new shed up, put the gate up for security and privacy.
0:45:23 > 0:45:29The patio around here, it was under grass and dirt, so it's quite nice to get a new patio.
0:45:29 > 0:45:33Hopefully in the summer, I'll be able to break up the garden a bit by putting a patio in the centre.
0:45:33 > 0:45:35Some real improvements.
0:45:35 > 0:45:37Back inside, work on the flat that Jackie and Fred
0:45:37 > 0:45:42paid 130,000 for on auction day has played to their strengths.
0:45:44 > 0:45:46I was involved with the electrics.
0:45:46 > 0:45:49It was a profession of mine.
0:45:49 > 0:45:54You were involved with Stephen with the design and colours and the blinds and the windows.
0:45:54 > 0:45:58Yes, Stephen picked the colours. We got him doing a lot of the heavy work.
0:45:58 > 0:46:02Loading the rubbish, and he did a lot of the painting.
0:46:02 > 0:46:04I painted most of the walls.
0:46:04 > 0:46:09I painted the bathroom. Gutted the kitchen and the bathroom with all the tiles and things like that.
0:46:09 > 0:46:14Now the flat is finished and Stephen has moved in, do Fred and Jackie have a favourite room?
0:46:14 > 0:46:18- I guess the bedroom, really. I mean, I put the wardrobes in.- Yes.
0:46:18 > 0:46:21That changed the bedroom quite a bit.
0:46:21 > 0:46:25My favourite bit is the kitchen, cos that's really come out well.
0:46:25 > 0:46:28Very pleased with it. It looks fantastic.
0:46:28 > 0:46:31There has been quite a lot done in the kitchen. We de-tiled everything.
0:46:31 > 0:46:34Everything is pretty much new in here.
0:46:34 > 0:46:36We had to get rid of the old fridge.
0:46:36 > 0:46:38A new cooker, a new grill. A beautiful new worktop.
0:46:38 > 0:46:40It's all painted.
0:46:40 > 0:46:43Everything is pretty brand-new, and I'm really pleased with it.
0:46:43 > 0:46:45It's nice and modern and clean and quite sharp.
0:46:53 > 0:46:55Now, for the all-important budget report.
0:46:55 > 0:46:59Remember, they paid £130,000 on auction day and they've done
0:46:59 > 0:47:03a really good makeover here, so how much did it cost?
0:47:03 > 0:47:09We probably spent £5,000 to £8,000. That's pretty reasonable. We're quite pleased with that.
0:47:09 > 0:47:17We said about five, but it's gone to eight because certain things we've chosen have pushed that a wee bit.
0:47:17 > 0:47:19- Yes.- But that was down to us.
0:47:19 > 0:47:22It wasn't because of problems that made it more expensive,
0:47:22 > 0:47:25- it was because what we did. - It was what we chose to put in.
0:47:28 > 0:47:32Time to find out what two local estate agents
0:47:32 > 0:47:36think of this first-floor flat.
0:47:36 > 0:47:39Very impressed with everything they've done.
0:47:39 > 0:47:42The kitchen and bathroom have been fitted to such a high standard.
0:47:42 > 0:47:47It really makes the property stand out against its competitors on the market.
0:47:47 > 0:47:50I think kitchens and bathrooms are highly-saleable parts
0:47:50 > 0:47:52of any property and these are particularly nice.
0:47:52 > 0:47:58I like the wooden work surfaces in here and the bathroom, the tiling is exceptionally nice as well.
0:47:58 > 0:48:00The garden is finished very well.
0:48:00 > 0:48:04It's been fenced down all the boundaries.
0:48:04 > 0:48:06I think the contrasting colours in the rooms
0:48:06 > 0:48:11is actually a very nice touch rather than just having the same colour on every wall.
0:48:11 > 0:48:15Stephen has now moved in with his girlfriend and made this flat their home.
0:48:15 > 0:48:20How much rent could he have generated if he been looking for tenants?
0:48:20 > 0:48:22I think it would achieve somewhere
0:48:22 > 0:48:25between £650 and £700 per calendar month.
0:48:25 > 0:48:29The rental demand for properties like this is good
0:48:29 > 0:48:33and we'd expect normally to get 700, 725 a month,
0:48:33 > 0:48:38but because of the standard of this, we'd probably aim to get between £750 and £800.
0:48:38 > 0:48:44Potentially a good return, reflecting the excellent finish here.
0:48:44 > 0:48:47Yeah, very nice. Very nice. We didn't expect...
0:48:47 > 0:48:52- Very good.- It's good. - He might move out and rent it now!
0:48:52 > 0:48:56The budget did stretch from 5,000 to 8,000,
0:48:56 > 0:48:58taking the total cost to £138,000.
0:48:58 > 0:49:04So, will the valuation of the flat be in line with expectations?
0:49:04 > 0:49:07I think for this property to go on the market,
0:49:07 > 0:49:10we should be looking initially at an asking price
0:49:10 > 0:49:12between 160 and 165,000.
0:49:12 > 0:49:18The price I'd value the property would be somewhere in the region of £170,000 to £175,000.
0:49:19 > 0:49:22Assuming they got 160,000,
0:49:22 > 0:49:27that would represent £22,000 gross profit, minus the usual expenses.
0:49:27 > 0:49:30It could be higher if they achieved the top figure.
0:49:30 > 0:49:33- That's impressive again.- That is.
0:49:33 > 0:49:36- I didn't think it would be as much as that.- That's awesome.
0:49:36 > 0:49:38I didn't expect it to go that high.
0:49:38 > 0:49:40I was quite shocked. So very pleased, yeah.
0:49:40 > 0:49:45Fred and Jackie have successfully got Steve on the first rung of the property ladder.
0:49:45 > 0:49:47They have another daughter who's at university.
0:49:47 > 0:49:51So would they go down the same route again?
0:49:51 > 0:49:56- Yes, I think we'd do it again. - Certainly, the right property,
0:49:56 > 0:50:00the timing, yeah, if everything was together as this one was, yeah, we'd do it again.
0:50:07 > 0:50:09This three-bedroomed house near Birmingham
0:50:09 > 0:50:15was bought at auction for £87,000 by Daniel and a business partner.
0:50:15 > 0:50:18It was sold by the local council subject to the requirement that
0:50:18 > 0:50:24it was repaired, refurbished and brought back into residential use within a 12-month period.
0:50:24 > 0:50:29Daniel works for the council, risk-assessing large high-rise buildings.
0:50:29 > 0:50:33So how did he think this one compared with his day-to-day job?
0:50:33 > 0:50:37Myself and my colleagues get involved in multi-million pound schemes, so this is fairly small-fry
0:50:37 > 0:50:41in comparison to the day-to-day, and straightforward, hopefully.
0:50:41 > 0:50:45# He's a smooth operator
0:50:45 > 0:50:50# A smooth operator... #
0:50:50 > 0:50:54Three months later, the house has been completely transformed.
0:50:54 > 0:50:58Rooms and windows have been opened up and it looks ready to live in.
0:51:04 > 0:51:06So was it straightforward?
0:51:06 > 0:51:08I feel it's gone extremely well.
0:51:08 > 0:51:11It's gone easier than I anticipated, to be honest.
0:51:11 > 0:51:14We haven't had any real nasty surprises, which I'm glad about.
0:51:14 > 0:51:18They did discover the gas had been disconnected from the mains,
0:51:18 > 0:51:22but thankfully it was reconnected for only £300.
0:51:22 > 0:51:26Something that went very well was the kitchen-dining room.
0:51:26 > 0:51:31This is the one room where we've made probably the biggest change for the better.
0:51:31 > 0:51:36As you'll have seen before, we had a dividing wall between the dining room
0:51:36 > 0:51:42and the kitchen which we've taken out, to open up the space and make it brighter more family-orientated.
0:51:42 > 0:51:48We've bricked up the back door, which is where this window is now and there was a window behind the boiler
0:51:48 > 0:51:54and there was a very small and old kitchen, so that has been completely refurbished and we've opened it up,
0:51:54 > 0:51:59and we've taken the bay window off the back here which had subsidence
0:51:59 > 0:52:05and put the patio doors in again to introduce the light and make it more user-friendly.
0:52:05 > 0:52:10I think we've ended up with a very nice open-plan seating and eating area.
0:52:12 > 0:52:15The tired-looking front room has been redecorated.
0:52:15 > 0:52:19The old windows have been replaced with UPVC double-glazed units.
0:52:21 > 0:52:26The house has also had central heating installed and a complete re-wire.
0:52:26 > 0:52:31But upstairs, not everything is new.
0:52:31 > 0:52:34I'm very pleased with the way this room has come out.
0:52:34 > 0:52:38When we took the property, we found that this old cast-iron bath was hiding behind
0:52:38 > 0:52:43years of plywood panelling, so I took the opportunity of cleaning it up,
0:52:43 > 0:52:45repainting it and resurfacing it.
0:52:45 > 0:52:48We've changed the layout of the bathroom to maximise the space
0:52:48 > 0:52:53and we've got the shower with the cast-iron bath and hopefully that helps sell it,
0:52:53 > 0:52:56over and above perhaps one of the properties in neighbouring streets
0:52:56 > 0:52:59with the more traditional plastic bathroom suite.
0:52:59 > 0:53:03As well as having the windows replaced, the three bedrooms have
0:53:03 > 0:53:08been decorated in light, neutral colours, ready for the new occupant to stamp their own character on.
0:53:08 > 0:53:12The project was originally expected to take three months.
0:53:12 > 0:53:16With the transformation this house has gone through, it could easily have taken that.
0:53:16 > 0:53:19It's gone ahead of schedule, which I'm pleased with.
0:53:19 > 0:53:22We could have been finished a couple of weeks earlier.
0:53:22 > 0:53:27We've had a few minor hiccups with decoration and plastering issues which we overcame at the end,
0:53:27 > 0:53:29but I think it was a case of getting the right people in
0:53:29 > 0:53:34and managing who was in the property so they weren't tripping over each other.
0:53:35 > 0:53:39It hasn't taken as long as first thought.
0:53:39 > 0:53:45Has it cost less than the original budget of 12,500, plus their £2,500 contingency?
0:53:45 > 0:53:50I was expecting 15,000 realistically and we're just over the 15,
0:53:50 > 0:53:54between 15 and 15-and-a-half, so I'm pleased. Overall we're in on budget.
0:53:54 > 0:53:59It's just now a case of funding the outright purchase of the freehold.
0:53:59 > 0:54:02When the council sold this house at auction, it was
0:54:02 > 0:54:06on the condition the work was done to the correct standard within 12 months.
0:54:06 > 0:54:10If not, they would have been able to reclaim the property.
0:54:10 > 0:54:13But there will be no problem meeting that requirement here.
0:54:13 > 0:54:16We asked two local estate agents to take a look.
0:54:17 > 0:54:23Very nice. The guys made a good job of the property.
0:54:23 > 0:54:27The one feature I particularly like is the kitchen downstairs.
0:54:27 > 0:54:30It was very small.
0:54:30 > 0:54:33He's now taken a wall out, opened it out,
0:54:33 > 0:54:38put new units in, and it's really made a difference to the look downstairs.
0:54:38 > 0:54:41Upstairs, he's revamped the bathroom.
0:54:41 > 0:54:46Interesting to see that he's kept the old roll-top bath with the feet.
0:54:46 > 0:54:52I've had a look around the house. I think it's very nicely done.
0:54:52 > 0:54:55It's a good family home in a popular location.
0:54:55 > 0:55:03If you're going for a rental market, neutral is ideal because,
0:55:03 > 0:55:07between tenants, it's easier to keep clean and easier to maintain.
0:55:07 > 0:55:13If somebody is looking to purchase the property then it's a plain palette,
0:55:13 > 0:55:18a plain canvas for them to add their own decor and their own tastes.
0:55:18 > 0:55:25They bought the property for 87,000 and the budget to bring it up to standard was just over 15,000,
0:55:25 > 0:55:29making a total spend of around £102,000.
0:55:31 > 0:55:35How much do similar properties fetch on the market in this area?
0:55:35 > 0:55:40Given the current market conditions and the condition that the property
0:55:40 > 0:55:44is now in, I'd estimate in the region of £130,000.
0:55:44 > 0:55:51If they were to place the property for sale now, you'd be looking in the region of £125,000.
0:55:51 > 0:55:56We have actually got it marketed for £129,950, with a view
0:55:56 > 0:56:02to taking £127,000, £128,000, those valuations fit very well with what we've got in mind
0:56:02 > 0:56:05and hopefully we sit bang in the middle.
0:56:05 > 0:56:09The plan always was to sell the property when it was finished,
0:56:09 > 0:56:13but if they can't sell it, what could it be worth on the rental market?
0:56:13 > 0:56:17If they opted to rent this, I'd imagine a rent in the region of
0:56:17 > 0:56:23£550 to £575 per calendar month would probably be appropriate.
0:56:23 > 0:56:29This is an ideal property for rental and you're looking at a valuation
0:56:29 > 0:56:33in the region of £575 per calendar month.
0:56:33 > 0:56:39It's a good return on the investment if you were looking for a longer-term investment.
0:56:39 > 0:56:44We set out to do the property for sale and that's still the route we'd like to take
0:56:44 > 0:56:46to free up the money that we've invested in it,
0:56:46 > 0:56:49so that we can move on to another project.
0:56:49 > 0:56:53But it's nice to know that that kind of level of rental income is available.
0:56:55 > 0:56:57From perfect homes to shrewd investments.
0:56:57 > 0:57:00Join us next time for more Homes Under the Hammer.
0:57:00 > 0:57:02- We'll see you then. - Goodbye.- Goodbye.
0:57:17 > 0:57:20Subtitles by Red Bee Media Ltd
0:57:20 > 0:57:23E-mail subtitling@bbc.co.uk