0:00:02 > 0:00:08The financial landscape may have changed, but people are still buying property and there are bargains.
0:00:08 > 0:00:10You may be after your dream home
0:00:10 > 0:00:14or an investment for your retirement years.
0:00:14 > 0:00:20Whatever. There are some very interesting opportunities when you buy your home under the hammer.
0:00:45 > 0:00:51You have to know what you're doing when you buy at auction. There are lots of pitfalls.
0:00:51 > 0:00:55But you could find a real gem to live or make lots of money.
0:00:55 > 0:01:00Let's see if today's buyers struck gold or just lots of dust.
0:01:01 > 0:01:06In Cornwall, this beautiful cottage has a cracking kitchen.
0:01:06 > 0:01:10I say cracking because it literally is.
0:01:10 > 0:01:17If you like the bright lights and big city, this house in Bermondsey could be just for you.
0:01:17 > 0:01:21You're a cab journey away from all that London has to offer.
0:01:21 > 0:01:28And this plot of land down a muddy track in Leeds is a bit overgrown.
0:01:28 > 0:01:31Apart from that, it's a good plot.
0:01:33 > 0:01:38All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:38 > 0:01:41when they went under the hammer.
0:01:43 > 0:01:49I'm in Cornwall. Stop, stop, stop! I said I'm in Cornwall.
0:01:53 > 0:01:55MUSIC: "The Floral Dance"
0:01:57 > 0:01:59Ah, that's better!
0:01:59 > 0:02:06This is Perranarworthal, between Truro and Falmouth. Once known for tin mines and an iron foundry,
0:02:06 > 0:02:08this is now mainly farmland.
0:02:08 > 0:02:15Cornwall is a tourist destination and has about five million people visiting every year.
0:02:17 > 0:02:20So what was up for auction? Well, it's this.
0:02:20 > 0:02:24A two-bedroomed, white, stone-built mid-terrace.
0:02:24 > 0:02:30At a guide price of 155,000 quid, the big question is do still waters run deep?
0:02:30 > 0:02:35Are there hidden depths? Let's find out.
0:02:36 > 0:02:42So through the door and into a corridor that leads to a rear living room area
0:02:42 > 0:02:47and onwards to the kitchen. Front sitting room area here.
0:02:47 > 0:02:52Not a bad size, a bit of light. What it lacks is a bit of heart,
0:02:52 > 0:02:58a focal point. You can create that by reinstating a fireplace that was here.
0:02:58 > 0:03:04There's an air brick there. You could open that up and create what's needed,
0:03:04 > 0:03:10but all in all, bearing in mind it's a two-bedroom cottage, it's not a bad start.
0:03:10 > 0:03:16'The corridor leads down to the back reception room and off that there's the kitchen,
0:03:16 > 0:03:22'which we'll discuss later. And also the stairs up to the two bedrooms.
0:03:22 > 0:03:28'The front bedroom's a good size and the back one's not bad either for a cottage of this age.
0:03:31 > 0:03:37'The bathroom or should I say shower room needs a bit of modernisation, like the rest,
0:03:37 > 0:03:42'but the biggest concern is back downstairs.'
0:03:42 > 0:03:46At the rear of the property, a cracking kitchen.
0:03:46 > 0:03:50I say cracking... because it literally is.
0:03:50 > 0:03:56This is built into an extension on the rear of the property and it's coming away from the house.
0:03:56 > 0:04:02That is very serious. It's basically sinking and the kitchen itself is not ideal either.
0:04:02 > 0:04:09It's not a very good space or position and that sinking definitely means
0:04:09 > 0:04:13you have to do something very serious here. Knock it down.
0:04:13 > 0:04:19Replace it with something that's got a good foundation or move the kitchen into the body of the house
0:04:19 > 0:04:24and have this open. to make the most of the view.
0:04:24 > 0:04:29# Slippin' and a-slidin' Been told a long time ago
0:04:29 > 0:04:34# Slippin' and a-slidin' Been told a long time ago... #
0:04:34 > 0:04:38'When you go outside, the views are also cracking.'
0:04:40 > 0:04:45The garden is split into two parts. That bit there is relatively flat
0:04:45 > 0:04:49and accessed across this bit of land which you have a right of way across
0:04:49 > 0:04:56and then another bit at the rear stretches very steeply down there to the Deveron Creek at the bottom.
0:04:56 > 0:05:00Wouldn't it be lovely to have a boat moored there?
0:05:00 > 0:05:07It's actually tidal. So the tide coming in and out twice a day from your land - how marvellous.
0:05:08 > 0:05:14'I'm sure that with a little effort that river could be landscaped into the garden better.
0:05:14 > 0:05:19'It seems a waste not to make more of it. The back's lovely and quiet,
0:05:19 > 0:05:26'but the front might be in the country, but it's still on a busy road with cars whizzing past.
0:05:26 > 0:05:31'The property looks promising if you have some money to spend.
0:05:31 > 0:05:33'What does the auctioneer think?'
0:05:33 > 0:05:36It has a lot of potential
0:05:36 > 0:05:40for building out towards the river. I can see a terrace.
0:05:40 > 0:05:43Rebuild the kitchen,
0:05:43 > 0:05:46a terrace on top would be fantastic.
0:05:46 > 0:05:52The thing I dislike about the house is only that the kitchen extension doesn't do it justice.
0:05:52 > 0:05:59With a bit of care and thought, that could have been a major feature, and will be one day.
0:05:59 > 0:06:04'I have to agree. The kitchen really is the low point.
0:06:04 > 0:06:10'The guide price at auction was £155,000. How much could it be worth once done up?'
0:06:10 > 0:06:14If fully refurbished, the property would have a value
0:06:14 > 0:06:16around...
0:06:16 > 0:06:21£225,000. Maybe a fraction more.
0:06:21 > 0:06:28'If the new owner decided to renovate and then rent it out, what income could it generate?'
0:06:28 > 0:06:36If brought up to a proper letting standard, you could be looking at £600-£625 per calendar month.
0:06:36 > 0:06:41'Maybe renting out the house isn't the best option.'
0:06:41 > 0:06:45Well, I love waterside properties, so this one ticks that box.
0:06:45 > 0:06:51It is small and it needs quite a lot of work, not least in terms of this kitchen,
0:06:51 > 0:06:55which will have to come down, but even at that £155,000 guide price
0:06:55 > 0:07:02I think there's still a little bit of money to be made on this one. Let's see who fancied it.
0:07:07 > 0:07:10Two Oak Villas, Perranarworthal.
0:07:10 > 0:07:14That's local for... Perranarworthal.
0:07:14 > 0:07:18155. I don't know. That is the view from the garden.
0:07:18 > 0:07:22How about 150 to start me? I'll do 135.
0:07:22 > 0:07:27I won't go any lower and we'll move on to Lot 18 if you want.
0:07:27 > 0:07:29Yeah? 135. At 135.
0:07:29 > 0:07:33138. 140. Thank you, 140.
0:07:33 > 0:07:37142. 144. 146.
0:07:37 > 0:07:39148.
0:07:39 > 0:07:41Maybe now? 149.
0:07:41 > 0:07:47At 14... 150. 150. She who hesitates at 150.
0:07:47 > 0:07:52A fresh face on the left. At 150 once.
0:07:52 > 0:07:57You are missing Two Oak Villas. At 150 twice. At 150 and done.
0:07:57 > 0:08:01Sir, yours. Congratulations to the gentleman on my left there.
0:08:01 > 0:08:08'It was Roger who made the successful bid of £150,000 - £5,000 under the guide price.
0:08:08 > 0:08:13'He's originally from the Wirral and moved to Cornwall 15 years ago.
0:08:14 > 0:08:21'I met up with him to hear about his plans for the place and whether he'd enjoyed the auction.'
0:08:21 > 0:08:25I've been to auctions before and bought cars and furniture,
0:08:25 > 0:08:31but never a house, so I was concerned about it, I have to say, having not done that before.
0:08:31 > 0:08:37But I was pleased with the price I got it for. I'd actually already offered the guide price
0:08:37 > 0:08:44- prior to auction.- Oh, really? - So I got it for £5,000 less than I had already offered.
0:08:46 > 0:08:52'Roger was lucky that the auction went his way, but he hasn't always had luck on his side.'
0:08:54 > 0:08:58Four and a half years ago I had an accident on my boat.
0:08:58 > 0:09:05I was dragged through the propeller, breaking my leg quite severely, so since then I've had problems.
0:09:05 > 0:09:11Hopefully getting to the end of that, but because of that I need people to help.
0:09:11 > 0:09:17I'm not going to be getting on the roof. Any jobs that take me off ground floor level, I need help.
0:09:19 > 0:09:24'It's great to see someone so positive after such a bad accident,
0:09:24 > 0:09:28'but why did Roger buy the house in the first place?'
0:09:28 > 0:09:34Initially, it was development potential, but then I came to see it twice and realised that, actually,
0:09:34 > 0:09:36- I'd like to live here.- Oh, wow.
0:09:36 > 0:09:38What was it that you liked?
0:09:38 > 0:09:45If you look at it as it is now, clearly it's been lived in for a long time in its current state.
0:09:45 > 0:09:53It's a blank canvas, effectively. It needs completely renovated, so you can put your own taste into it.
0:09:53 > 0:09:58- It enabled me to start afresh. - So what's your experience with this?
0:09:58 > 0:10:03I've moved house many times within the family, if you like.
0:10:03 > 0:10:07I've moved once every 2 or 3 years in my life, anyway.
0:10:07 > 0:10:11That's always been a development. Then in the last 10, 12 years,
0:10:11 > 0:10:16I've also bought pubs, a restaurant and some other properties.
0:10:16 > 0:10:22'The kitchen's got much in common with Roger - they both seem to have moved a lot.'
0:10:23 > 0:10:27It looks as if it's been put on in the '60s. I think it's brick
0:10:27 > 0:10:31and it's not been tied in to the main building properly.
0:10:31 > 0:10:35Obviously, after a period of 40 years, it's started to move.
0:10:35 > 0:10:39There's about a 12mm gap at the top.
0:10:39 > 0:10:46So that will be removed altogether. Take that extension down and redevelop that part of it.
0:10:48 > 0:10:55'That's quite a big job and Roger's said he won't be able to do anything above the ground floor.'
0:10:55 > 0:11:02I will be very hands on, but I also have a number of people because of developing before,
0:11:02 > 0:11:06there's a team of people I can bring into play.
0:11:06 > 0:11:13So the objective will be to try to achieve the development in about six weeks, maybe eight weeks.
0:11:13 > 0:11:18'Roger paid £150,000 for this house at auction,
0:11:18 > 0:11:24'but he'll need to wave goodbye to quite a bit more before the work is finished.'
0:11:24 > 0:11:27Roughly how much will you spend?
0:11:27 > 0:11:34About £30,000-£40,000. Somewhere between those two figures, which will be labour and materials.
0:11:34 > 0:11:37£35,000, I'd be reasonably happy.
0:11:42 > 0:11:46'Roger's moving five miles away from Falmouth on the south coast.
0:11:46 > 0:11:50'Won't he miss the sea views across the bay?'
0:11:50 > 0:11:55It backs onto a stream, so not quite the sea, but at least there's water.
0:11:55 > 0:12:01- You can go fishing maybe. - And canoeing.- You go canoeing? - I will do when the tide's in.
0:12:01 > 0:12:08Then there's about a metre of water, so I would be able to canoe or use a small boat.
0:12:08 > 0:12:15Roger's certainly got the experience to make a success of this project and it's great it'll be his home.
0:12:15 > 0:12:21Still, timescales are tight so will the tide be against him on completing this one
0:12:21 > 0:12:26in its allotted timescale? You can find out later in the show.
0:12:32 > 0:12:38Today I'm in southeast London in Bermondsey, the home of Garibaldi biscuits, one of my favourites.
0:12:38 > 0:12:46It all started in 1866 when James Peek and George Hender Frean opened a biscuit factory here.
0:12:46 > 0:12:50They introduced the celebrated snack in the 19th century
0:12:50 > 0:12:54and it's still going strong the world over.
0:12:54 > 0:12:57# Sweet dreams are made of these
0:12:57 > 0:13:01# Who am I to disagree... #
0:13:01 > 0:13:06The house I'm going to see hasn't been here for 150 years -
0:13:06 > 0:13:11the whole estate looks pretty new - but will the house take the biscuit?
0:13:11 > 0:13:16I'm here to see a two-bedroom mid-terrace that had a guide of £110,000.
0:13:16 > 0:13:22Two years ago, a house on this very road sold for £278,000.
0:13:22 > 0:13:26So I'm excited to see what's behind that door.
0:13:30 > 0:13:34'It might not be one of the most inviting doors I've come across,
0:13:34 > 0:13:41'but it's protecting the property from vandals. That's crucial when it's lying empty.'
0:13:41 > 0:13:46You know, I never get tired of looking round all these properties. I just love it.
0:13:46 > 0:13:49You never know what you'll find.
0:13:49 > 0:13:54In here, it's got a solid feel to it. The kitchen needs a clear out for a start.
0:13:54 > 0:13:59And you may even be able to salvage those units after a rub down.
0:13:59 > 0:14:05Through into the lounge. A nice, open-plan space. Room for a big table and chairs.
0:14:05 > 0:14:09And it would easily suit a family. A couple of sofas in here,
0:14:09 > 0:14:15doors leading to the garden... Unfortunately, I can't get out there today,
0:14:15 > 0:14:21but it's clean and tidy, nice laminate floor. Once you've given it a sweep, it's a good family home.
0:14:21 > 0:14:27What I love the most is that you literally have London Bridge on your doorstep
0:14:27 > 0:14:31and you're a cab journey from what London has to offer.
0:14:31 > 0:14:37The bright lights of the city are visible from Bermondsey. With the Tube just a short walk,
0:14:37 > 0:14:40this place is perfectly located.
0:14:42 > 0:14:49'Upstairs, there are three reasonably-sized bedrooms, and the bathroom's in good order.
0:14:49 > 0:14:53'If you were looking to rent this out, not much needs doing.
0:14:53 > 0:14:59'Ah. Well, the garden at the back looks in a real state, with lots of clutter to clear,
0:14:59 > 0:15:06'but it's still an asset. A tempting view from the kitchen window can add thousands to the price.
0:15:06 > 0:15:09'And here's something else.'
0:15:09 > 0:15:13Double glazing and insulation would both add value.
0:15:13 > 0:15:17We're more aware now of how expensive these supplies are.
0:15:17 > 0:15:21Nearly a quarter of British homes do not have any loft insulation,
0:15:21 > 0:15:25mainly because they're worried about the cost of installing it.
0:15:25 > 0:15:31If you're buying or selling a home, you now need an energy performance certificate by law.
0:15:31 > 0:15:36EPCs will be required whenever a building is built, sold or rented.
0:15:36 > 0:15:42The certificate provides A-G ratings for the building, with A being the most energy efficient
0:15:42 > 0:15:47and G being the least, with the average up to now being D.
0:15:47 > 0:15:51So how do you think your house would fare?
0:15:55 > 0:15:59Of course, insulating this house is just one improvement.
0:15:59 > 0:16:04A loft conversion could increase its worth by 20%.
0:16:04 > 0:16:10And if planning permission were obtained, an extensions isn't out of the question.
0:16:10 > 0:16:15That could add another 10% to the property's value.
0:16:16 > 0:16:22But maybe it's a case of, "If it ain't broke, don't fix it."
0:16:22 > 0:16:26It doesn't need a whole lot doing. Once these shutters are taken off
0:16:26 > 0:16:30and the patio door installed and the windows clips back in,
0:16:30 > 0:16:36the kitchen just needs tidying up. So a lick of paint and a clean and somebody could move straight in.
0:16:36 > 0:16:41Sounds like a quick turnaround. Ideal for rental.
0:16:41 > 0:16:46In rental value, it's approximately £1,000 per calendar month.
0:16:46 > 0:16:52In terms of resale, if the property was just tidied up with what it has at the moment,
0:16:52 > 0:16:56you're looking at around £230,000-£240,000.
0:16:56 > 0:17:02Both the resale and rental figures are strong and there's not much remedial work needed in here.
0:17:02 > 0:17:07I think this is a fantastic buy. Let's see who else thought so at auction.
0:17:11 > 0:17:14Let's say £100,000. £100,000.
0:17:14 > 0:17:16110. 120.
0:17:16 > 0:17:18130. 140.
0:17:18 > 0:17:21150. 160.
0:17:21 > 0:17:24170. 180. 190.
0:17:24 > 0:17:28200. 210. 220.
0:17:28 > 0:17:31221. 222?
0:17:31 > 0:17:36Just one more go. You're both nodding. 222?
0:17:36 > 0:17:39221 with you, madam. 221.
0:17:39 > 0:17:45First time. Second time. Third and last time. Are you all done? Sold.
0:17:45 > 0:17:48221. Well done.
0:17:49 > 0:17:53'And the successful bid came from Neranja.
0:17:53 > 0:18:00'To buy this, she has formed a financial partnership with her mother, Inorma.
0:18:06 > 0:18:13'They paid £221,000 - double the guide price - for this mid-terrace in Bermondsey.
0:18:13 > 0:18:20'I wanted to find out whether Neranja had suffered a bad case of auction fever.'
0:18:20 > 0:18:24- Ladies, congratulations. Neranja, I saw you at the auction.- Yes.
0:18:24 > 0:18:28- But you weren't there. - I couldn't get a day off.
0:18:28 > 0:18:33- How much did you think you wanted to spend?- 180, 190.
0:18:33 > 0:18:37Then I got to the auction and thought, 200, 210.
0:18:37 > 0:18:40Then I'm thinking, "I'll go to 230, 240."
0:18:40 > 0:18:46- No!- Yes, honestly!- So you went from 180 to 240 in a matter of minutes.
0:18:46 > 0:18:52And then I'm thinking, "Once it goes over 240, I'll start panicking, but I'll be all right to 240."
0:18:52 > 0:18:55Yes, I had no idea, quite honestly.
0:18:55 > 0:19:02- What happened when the hammer went down?- I started shaking! I couldn't move for shaking.
0:19:02 > 0:19:07I phoned my brother up and said, "Break it to Mum that I went over the limit."
0:19:07 > 0:19:11Neranja has already played the developing game well,
0:19:11 > 0:19:18selling her house at the height of the market. She used the profit to start a property portfolio.
0:19:18 > 0:19:23- Is property something you've always been into?- I have.- Not me.
0:19:23 > 0:19:27I've always loved property. Mum's holding the reins on me.
0:19:27 > 0:19:31- "Slow down!" - You can't buy everything!
0:19:31 > 0:19:34So what about you, Inorma?
0:19:34 > 0:19:38I'm supporting Neranja. Whatever she wants, if I can.
0:19:38 > 0:19:42No! That makes me sound like a spoiled brat!
0:19:42 > 0:19:45I didn't have any idea of anything.
0:19:45 > 0:19:50'It's fair to say that Neranja's been the driving force
0:19:50 > 0:19:58'and her foot has been on the accelerator as she snapped up three properties in four months.'
0:19:58 > 0:20:02- How have you managed to do that financially? Mortgages?- Yes.
0:20:02 > 0:20:09It was lucky that we had the deposit to do it and Mum helped me out with the deposits as well.
0:20:09 > 0:20:13- We've gone 50/50 on everything. - One house has already been rented.
0:20:13 > 0:20:17- You're very proud of your daughter. - Of course I am.
0:20:17 > 0:20:25'And so she should be. Buying three properties in four months is no mean feat.
0:20:25 > 0:20:29'Her portfolio seems to be growing pretty quickly.'
0:20:29 > 0:20:34OK, what is the game plan with this house? It's in good condition.
0:20:34 > 0:20:40It is. We saw a lot of properties that needed a lot of attention. This doesn't need that much work.
0:20:40 > 0:20:44Ideally, to rent it out as soon as possible,
0:20:44 > 0:20:48then in the next 2-3 years, when property prices are back up, sell it.
0:20:48 > 0:20:51What's the budget you've got?
0:20:53 > 0:20:56- Well...- It's not a lot, is it?
0:20:56 > 0:20:58£2,000-£3,000, perhaps.
0:20:58 > 0:21:03£2,000-£3,000? I think you could do it. New kitchen and bathroom?
0:21:03 > 0:21:08I don't know. We're in discussion. Because we'll rent it first,
0:21:08 > 0:21:16- I don't want to do it really nicely and then rent it and...- And you have another three properties to see to.
0:21:16 > 0:21:21- Yes.- Mum keeps bringing you back down to Earth!- I do!
0:21:21 > 0:21:24She needs to or I'd be up there!
0:21:30 > 0:21:36'Inorma could face a challenge keeping her daughter's feet on the ground,
0:21:36 > 0:21:39'but they've a realistic timescale.'
0:21:39 > 0:21:45- How long will it take you? - Two months, possibly.- So far, you have played the market tremendously.
0:21:45 > 0:21:51- Yes...- The reason you got your money in the first place was selling your first house at the market peak.
0:21:51 > 0:21:56- I know.- If you can play that game again, you'll do incredibly well.
0:21:56 > 0:22:02It would be fantastic. I hope we will be that lucky. You can't guarantee it.
0:22:02 > 0:22:08- You have to get your crystal ball out!- I know, so I think sensibly, if you look at it logically,
0:22:08 > 0:22:10we bought when prices were low,
0:22:10 > 0:22:15paid quite a decent price for it, so hopefully...
0:22:15 > 0:22:21And if we're not financially burdened that we don't have to sell it and we choose when to sell it,
0:22:21 > 0:22:24hopefully it will be the right time.
0:22:25 > 0:22:30Neranja is an example of somebody taking advantage of this unstable market.
0:22:30 > 0:22:34Three properties in four months! That is some going!
0:22:34 > 0:22:38But I like her long-term strategy, too. A basic refurbishment for now,
0:22:38 > 0:22:43rent it out, then wait for the market to pick up before resale.
0:22:43 > 0:22:47It's worked for me in the past and seems to be working for her.
0:22:47 > 0:22:51Find out if she sticks to her plan later in the show.
0:22:52 > 0:22:57Coming up: what can you get in Leeds for £50,000?
0:22:57 > 0:23:02In this case, it's a plot of land. It's behind this hedge.
0:23:02 > 0:23:07The new owner of this house in London has really taken to property development.
0:23:07 > 0:23:12I really do love property and seeing what's what.
0:23:13 > 0:23:17But first is there hidden treasure in this Cornish cottage?
0:23:17 > 0:23:22I found an old ladder-type staircase behind the door.
0:23:24 > 0:23:30Back to Perranarworthal, a small village between Falmouth and Truro in Cornwall.
0:23:30 > 0:23:36We're here to see a two-bedroomed house bought at auction for £150,000.
0:23:36 > 0:23:43There does seem to be a problem with the kitchen, but that's not escaped the notice of Roger.
0:23:43 > 0:23:50It looks like it was put on in the '60s. I think it's brick. It's not been tied in properly.
0:23:50 > 0:23:55# Cracking up I'm getting ready to go Had enough... #
0:23:55 > 0:23:59'Not only was the old kitchen on the move, it was also very small.
0:23:59 > 0:24:06'That has now been knocked down and replaced with a timber construction on new foundations.
0:24:09 > 0:24:11'And wow - look at it now!
0:24:20 > 0:24:24'The dining room is now in the new extension
0:24:24 > 0:24:27'and has great views over the river.
0:24:30 > 0:24:37'Roger seems to have cracked the problem with the old kitchen. And just look at the new one.'
0:24:37 > 0:24:41Well, it was three rooms originally, with the hallway through.
0:24:41 > 0:24:45The first thing I did was open it all up. We took the hallway away.
0:24:45 > 0:24:48We knocked the three rooms through.
0:24:48 > 0:24:54The kitchen was originally the far room. It had a fabulous view so I've changed it round.
0:24:54 > 0:25:00Now the kitchen's in the middle and I have a living room and a dining room.
0:25:00 > 0:25:04The floor I had to replace in here. I'd to put a new concrete floor down.
0:25:04 > 0:25:07'And lovely slate tiles.
0:25:10 > 0:25:17'Roger's managed to modernise this old cottage. He's also reinstated some character
0:25:17 > 0:25:22'with features like this log burner and these old style radiators.
0:25:22 > 0:25:29'The former back reception room makes a great kitchen. So has he carried this theme on upstairs?'
0:25:29 > 0:25:35The bathroom's very small. It was only 1.5 metres by 1 metre. It had a shower, a loo and a basin.
0:25:35 > 0:25:41I've extended the wall, moved it back half a metre, three quarters of a metre
0:25:41 > 0:25:47and this wall also we brought out about a metre. The bathroom is now a usable space.
0:25:47 > 0:25:54- We have a bath as well as a shower. - 'And while restructuring the upstairs, Roger made a discovery.'
0:25:55 > 0:25:58I had to move this wall back.
0:25:58 > 0:26:02In order to do so, we removed all of the internal walls
0:26:02 > 0:26:08and found an old staircase, a ladder-type staircase, behind the door.
0:26:08 > 0:26:14So we've had to try to put a new staircase in, but increased the size of it.
0:26:14 > 0:26:18'That IS a surprise - stripping wallpaper and finding a staircase!
0:26:18 > 0:26:24'And look at what he's done with the loft space at the top of that concealed staircase.
0:26:35 > 0:26:41'He has done a wonderful job rebuilding the stairs and creating a perfect attic bedroom
0:26:41 > 0:26:45'for when his grandchildren come to stay.
0:26:45 > 0:26:49'The two bedrooms on the first floor are looking great as well.
0:26:49 > 0:26:55'The single bedroom is a bit smaller than it used to be because Roger extended the bathroom.
0:26:55 > 0:27:01'The cottage is full of charm and character, but what is he most pleased with?'
0:27:01 > 0:27:08The most pleasing is the back because of the view. There's a river and it overlooks the river.
0:27:08 > 0:27:11And it's 200 metres to a pub!
0:27:11 > 0:27:16'Thankfully, that hasn't impacted on the standard of his work.
0:27:16 > 0:27:20'Roger's been just as busy outside, too. He's taken down the brick wall
0:27:20 > 0:27:25'to give unbroken access to the creek at the bottom of his garden.
0:27:25 > 0:27:31'For those days he wants to mess about in the water, he's built a landing for his canoe
0:27:31 > 0:27:37'and there's decking at the top so he can sit out with a drink and enjoy the views.
0:27:37 > 0:27:41'He's also creating an allotment to grow some fresh vegetables.
0:27:41 > 0:27:47'The plan was to finish in 6-8 weeks. Did that handy pub affect his timescale?'
0:27:47 > 0:27:53The renovation took about 6 weeks. Other than myself, there were 6 people involved.
0:27:53 > 0:27:59All the primary trades - an electrician, a plumber - but I also had physical help
0:27:59 > 0:28:04and then the decorating. My original budget was £30,000-£40,000.
0:28:04 > 0:28:07I will have spent, to complete, £42,000.
0:28:07 > 0:28:12So about £7,000 over. That did include all of the appliances.
0:28:12 > 0:28:19And because I reinstated the loft room, which wasn't budgeted for, that was about £5,000 of it.
0:28:19 > 0:28:25Had I stuck to my original plans, I would have been on budget.
0:28:25 > 0:28:30So, effectively on budget and on time, but is he on track?
0:28:31 > 0:28:35We asked two local property experts to take a look.
0:28:36 > 0:28:38I think the changes here
0:28:38 > 0:28:40are absolutely fantastic.
0:28:40 > 0:28:44I thought I'd gone into a different house. It really is spectacular.
0:28:44 > 0:28:47The kitchen is an eye opener as well,
0:28:47 > 0:28:54but that back room where you just look out over the balcony and the river is just to die for.
0:28:54 > 0:28:57The gentleman's done an absolutely fantastic job.
0:28:57 > 0:29:00I can't fault the house in any way.
0:29:00 > 0:29:04Limitations - bedroom two is a little bit clipped.
0:29:04 > 0:29:07You'll need a smaller bed in there.
0:29:07 > 0:29:11The attic bedroom, what a find! Makes a lovely twin room.
0:29:11 > 0:29:17Again, limited on headroom, but that's the only faults I can find. He's done a fantastic job.
0:29:20 > 0:29:25That extra bedroom in the loft cost Roger £5,000.
0:29:25 > 0:29:28Has it increased the value?
0:29:28 > 0:29:32The extra bedroom in the attic has probably added...
0:29:33 > 0:29:37..£15,000, maybe £20,000 to the value of the house.
0:29:37 > 0:29:43The extra bedroom is going to raise the value by about, in this location, probably 20,000.
0:29:45 > 0:29:52Roger bought the property for £150,000 and has done £42,000-worth of work on it.
0:29:52 > 0:29:54How much could it sell for?
0:29:56 > 0:30:02If you put the house on the open market today, you could put it on towards 250
0:30:02 > 0:30:09and hope somebody wasn't too put off by the unusual second and third bedrooms in shape and form.
0:30:09 > 0:30:14But to the wider market, it's probably worth £230,000.
0:30:14 > 0:30:17It would sell extremely easily for at least 225,
0:30:17 > 0:30:22possibly a bit more if the owners got a bit of time to market the property.
0:30:22 > 0:30:25250 to 260 is what it's worth.
0:30:26 > 0:30:29How much could he expect in rental?
0:30:29 > 0:30:33There's two rental markets for the house.
0:30:33 > 0:30:38The first would be your normal month-to-month assured shorthold tenancy
0:30:38 > 0:30:44and he could probably get a figure close on £700 per calendar month on that basis.
0:30:44 > 0:30:47The other avenue would be holiday lettings.
0:30:47 > 0:30:51He could probably look at £800 or so per week during the summer.
0:30:51 > 0:30:57This would rent extremely well during the summer months and into the winter months as well
0:30:57 > 0:31:02for about 800-850 per week in the peak of the season, a bit less in the winter.
0:31:02 > 0:31:08On the assured shorthold tenancy, you'd obviously need a six-month agreement on that
0:31:08 > 0:31:12and you'd be getting close to £700 per calendar month.
0:31:12 > 0:31:16£700 a month to £800 is what I would have thought. That's about right.
0:31:16 > 0:31:20It looks as though Roger is just content to live here.
0:31:21 > 0:31:23And who can blame him?
0:31:27 > 0:31:31Today's property search finds me in Chapel Allerton,
0:31:31 > 0:31:35a pretty little suburb about two miles from Leeds city centre.
0:31:35 > 0:31:39It's a place that's popular with families and young professionals
0:31:39 > 0:31:44and its proximity to the city centre keeps property prices high.
0:31:44 > 0:31:50Well-kept properties and manicured front lawns make an excellent first impression.
0:31:52 > 0:31:55So, what does 50 grand buy you in Chapel Allerton?
0:31:55 > 0:31:57A house, a flat?
0:31:57 > 0:32:02Well, in this case, it's a plot of land and it's behind this hedge.
0:32:02 > 0:32:05The land was originally the garden of the big house,
0:32:05 > 0:32:11but since the house was converted into flats, the land was put on the market.
0:32:12 > 0:32:17It's all a bit overgrown now, but I think it's still worth exploring.
0:32:18 > 0:32:21So this is the plot. As you can see, a good size.
0:32:21 > 0:32:26Outline planning permission has been granted for a three-bedroom, detached property.
0:32:26 > 0:32:29I reckon you could get more on here.
0:32:29 > 0:32:35A three-bedroom detached would sit nicely on the plot, but to maximise the amount of money you could make,
0:32:35 > 0:32:41I would have gone for something else, but the planners were looking at the fact you're overlooked,
0:32:41 > 0:32:46access, how many cars. Access on to that busy road will be a major issue.
0:32:46 > 0:32:49But apart from that, it's a good plot.
0:32:50 > 0:32:54Just to make sure I'm not being over-optimistic here,
0:32:54 > 0:32:57I asked a local estate agent for her opinion.
0:32:57 > 0:33:03Chapel Allerton is a small suburb of the Leeds area,
0:33:03 > 0:33:05close to all the local amenities.
0:33:05 > 0:33:09You've got the ring road that will take you to Bradford.
0:33:09 > 0:33:13You've got Leeds city centre approximately two miles away.
0:33:13 > 0:33:19The piece of land that I've been looking round is a nice, sizeable piece of land
0:33:19 > 0:33:22to develop a three-bedroom, detached property.
0:33:24 > 0:33:31So how much does an upmarket, three-bedroom, detached property go for in this area?
0:33:31 > 0:33:36Anything between 250,000 to 280,000.
0:33:36 > 0:33:42To rent out, you're looking at £1,500 to £2,000 per month.
0:33:42 > 0:33:47So who was tempted by this plot of land in a nice area with outline planning permission?
0:33:47 > 0:33:50Let's find out at the auction.
0:33:54 > 0:33:57So it's Lot Number 36.
0:33:57 > 0:34:01Bank View is located off Stainbeck Lane...
0:34:01 > 0:34:05in the very popular district of Chapel Allerton.
0:34:05 > 0:34:09So where do you want to start the bidding for me? Start me at 50,000?
0:34:10 > 0:34:15Single building plot in Chapel Allerton. £50,000, surely?
0:34:15 > 0:34:17£50,000 anywhere?
0:34:19 > 0:34:2148?
0:34:21 > 0:34:2348,000?
0:34:24 > 0:34:27Thank you, sir. Opening bid at £48,000.
0:34:27 > 0:34:2948 I have. 49?
0:34:31 > 0:34:3449?
0:34:34 > 0:34:36At £48,000. 49? Go a half?
0:34:38 > 0:34:4148 and a half. New bidder. 49?
0:34:41 > 0:34:4349 is back in.
0:34:43 > 0:34:4649 and a half?
0:34:46 > 0:34:4949 and a half is bid. 50, sir?
0:34:49 > 0:34:53At 49,500 running. 50,000 anywhere?
0:34:53 > 0:34:57Coming back in...? At 49,500 then.
0:34:57 > 0:35:01All finished at 49,500?
0:35:01 > 0:35:0450,000 anywhere?
0:35:04 > 0:35:08All finished then, 49,500 it is.
0:35:08 > 0:35:12£50,000, anybody else want to come back in?
0:35:13 > 0:35:16Are you all done? Last chance.
0:35:16 > 0:35:19Any further bid? No? At 49 and a half, we have.
0:35:19 > 0:35:22£50,000 we're looking for.
0:35:22 > 0:35:26Any further bid...? No, OK.
0:35:26 > 0:35:30Lot 37, Northfield Mill, Church Street, Ossett...
0:35:30 > 0:35:36'After all the suspense, the land didn't meet its reserve price, so didn't sell under the hammer.
0:35:36 > 0:35:41'But the plot thickens. I can reveal that Vivian is the proud new owner
0:35:41 > 0:35:43'of this overgrown patch of land.
0:35:43 > 0:35:50'She was at the auction intending to buy an old schoolhouse up for sale, so what on earth happened?'
0:35:50 > 0:35:55We went to the auction knowing that the guide price was half a million pounds,
0:35:55 > 0:35:59but when we got to the auction, they'd upped that to 950,000.
0:35:59 > 0:36:02- Ooh!- And it went up to 790.
0:36:02 > 0:36:06- So, a bit out of your price range? - And it wasn't sold.
0:36:06 > 0:36:10This piece of land came up about three lots before.
0:36:12 > 0:36:14It didn't sell.
0:36:14 > 0:36:20But the auctioneer said, "If somebody offers me a little bit more, we might sell."
0:36:20 > 0:36:24So after the auction, I came up here with my husband,
0:36:24 > 0:36:30looked at it, went home and did a quick internet search on what properties round about are going for,
0:36:30 > 0:36:34and made an offer of 50,000 for it, which they accepted.
0:36:34 > 0:36:38'It's a lady's prerogative to change her mind.
0:36:38 > 0:36:44'Vivian went to the auction prepared to spend half a million pounds on a ready-made house,
0:36:44 > 0:36:48'but ended up with a plot of land for £50,000.
0:36:48 > 0:36:54'That is quite a dramatic change, but Vivian did some research online before making an offer for the land
0:36:54 > 0:36:58'and it doesn't sound as though she's new to this game.'
0:36:58 > 0:37:04I've done some property developing. I have lots of houses and apartments which I rent.
0:37:04 > 0:37:10I bought a nursing home last year which I converted into ten apartments.
0:37:10 > 0:37:16- Oh, wow!- And we are building two loft apartments in that same building at the moment.
0:37:16 > 0:37:19There'll be 12 apartments in that one building.
0:37:19 > 0:37:25'The builder doing the loft apartments is also going to be working on this new build.
0:37:25 > 0:37:29'In fact, he's so keen, he's already started clearing the land.
0:37:32 > 0:37:38'Vivian's also got the help of her husband George who has just retired.
0:37:38 > 0:37:43'The land has outline planning permission for a three-bedroom, detached house.
0:37:43 > 0:37:48'The council has already approved the development in principle,
0:37:48 > 0:37:53'but more detailed plans need to be agreed before any building work can commence,
0:37:53 > 0:37:57'so how does all that fit with Vivian's ambitions for this plot?'
0:37:57 > 0:38:03The existing plans are for quite a large detached house. It's ten metres deep and nine metres wide.
0:38:04 > 0:38:08I think if I was to build a house on the same footprint,
0:38:08 > 0:38:12I could make that a four-bedroom, detached house,
0:38:12 > 0:38:16which would make me more money, whether I was to sell it or rent it.
0:38:16 > 0:38:21I'll see whether it's worthwhile applying for planning permission for two semis.
0:38:21 > 0:38:26If I think there's a chance, I will do that, and if I don't get it, I'll appeal.
0:38:26 > 0:38:31If I think there's no chance, I'll put in for a three-bedroom, detached house,
0:38:31 > 0:38:34but try and make it into a four-bedroom, detached house.
0:38:34 > 0:38:39What was it about the plot that you thought, "Yeah, that would..."?
0:38:39 > 0:38:42It's a good-sized plot.
0:38:42 > 0:38:48I think this would take three townhouses, but it will certainly take two semis.
0:38:48 > 0:38:53The only drawback I can see is the access from the front
0:38:53 > 0:38:59and I think Leeds City Council would want you to be able to turn a car round in the drive
0:38:59 > 0:39:01in order to get in and out.
0:39:01 > 0:39:05'Vivian clearly wants to maximise her returns here.
0:39:05 > 0:39:11'She doesn't seem fazed by the planning process, having been through it on previous projects.
0:39:11 > 0:39:17'The budget on this could vary, depending on which plans actually get the council's approval.'
0:39:17 > 0:39:23I think I could build a substantial, four-bedroom, detached house with an integral garage here
0:39:23 > 0:39:26for less than £100,000.
0:39:26 > 0:39:30And the alternatives for what else you might build, costing-wise?
0:39:30 > 0:39:34Two three-bedroom semis won't cost an awful lot more,
0:39:34 > 0:39:39but there'll be a lot more profit in two three-bedroom semis here.
0:39:39 > 0:39:42So what about timescales?
0:39:42 > 0:39:47Well, I would hope to be here in six or nine months' time.
0:39:47 > 0:39:53- Built?- Built and everything if we got planning permission first time, but I don't think that will happen.
0:39:53 > 0:39:57I think it will be a year probably before we're back here again.
0:39:57 > 0:40:01'Vivian's wise to allow time for the planning process
0:40:01 > 0:40:05'and she's got plenty to keep her busy in the meantime.
0:40:05 > 0:40:11'She's a property developer, a landlord and a magistrate in Leeds every Friday.
0:40:11 > 0:40:15'What does she do to relax?'
0:40:15 > 0:40:21- Not an awful lot. I'd like to do more flying.- Flying?- I've got a private pilot's licence. So has my husband.
0:40:21 > 0:40:27- Oh, wow!- But there's been little time for that in the last 18 months since I've been doing the big house.
0:40:27 > 0:40:33- I had a trial flight for my 40th birthday.- Did you? - Many years ago, unfortunately.
0:40:33 > 0:40:38My husband and son came along and my husband thought he'd have a go too.
0:40:38 > 0:40:45And after that trial flight, we both decided we'd get our private pilot's licences.
0:40:45 > 0:40:47Our son went on and got his.
0:40:47 > 0:40:54We bought an aircraft when we got our pilot's licences and all did further training on that.
0:40:54 > 0:40:58- And our son is a training captain, so he trains other pilots.- Oh, wow!
0:40:58 > 0:41:02- From that 40th birthday present, he is now a commercial pilot?- He is.
0:41:02 > 0:41:08'So, add "proud mum" and "high-flyer" to Vivian's other achievements.
0:41:13 > 0:41:16'What's her next port of call?'
0:41:16 > 0:41:19If you'd asked me that a year or two ago, I would have said
0:41:19 > 0:41:23I'm going to sell my houses and flats over the next few years,
0:41:23 > 0:41:29but at the moment, I'm hanging on, waiting for prices to go back up.
0:41:29 > 0:41:34A bit of a change of direction for Vivian, not what she expected to buy at the auction.
0:41:34 > 0:41:37But will she be flying high with this project
0:41:37 > 0:41:44or will the state of the property market mean she is in for a crash landing? Find out later in the show.
0:41:46 > 0:41:53Well, the months have rolled by. It's time to find out how our property developers have got on.
0:41:53 > 0:41:58- Hmm. Did they unearth lots of treasure or a load of old dross? - Let's find out.
0:42:00 > 0:42:06Neranja and her mum Inorma bought this two-bedroom terraced house in Bermondsey
0:42:06 > 0:42:10for £221,000, double the guide price.
0:42:10 > 0:42:16Neranja is the first to admit that she got too carried away by her first auction experience.
0:42:16 > 0:42:19Sold, 221, well done.
0:42:20 > 0:42:26I said 180, 190, then I sort of got to the auction and I thought, "Right, 200, 210."
0:42:26 > 0:42:32- Then while I'm standing there, I'm thinking, "No, I think I'll go to 230 or 240."- No!- Yes, honestly.
0:42:32 > 0:42:36Mum Inorma was definitely the ground force in this partnership.
0:42:36 > 0:42:42They agreed to spend no more than £3,000 on the refurbishment and have it ready to rent out in two months.
0:42:42 > 0:42:47Thankfully, it was in pretty good condition, but definitely needed a clean-up.
0:42:48 > 0:42:51# I'm the cleaning woman
0:42:51 > 0:42:54# I'm here to clean up your mess
0:42:55 > 0:42:58# I'm the clean-up woman
0:42:58 > 0:43:00# Here to clean up your mess... #
0:43:00 > 0:43:04Never underestimate the power of a mop and duster.
0:43:04 > 0:43:08Neranja wanted to install a new kitchen and bathroom suite,
0:43:08 > 0:43:12but thrifty Inorma convinced her otherwise.
0:43:12 > 0:43:17We didn't actually end up replacing the kitchen as we thought we'd have to.
0:43:17 > 0:43:23We've put in a new boiler, new cupboard doors and things like that, new work surfaces, tiles,
0:43:23 > 0:43:28and basically, got it to a better standard than it was.
0:43:28 > 0:43:31# I'm the clean-up woman
0:43:31 > 0:43:34# Here to clean up your mess... #
0:43:35 > 0:43:40In the bathroom, we've kept the suite. It was fine white.
0:43:40 > 0:43:43We've kept the old tiles. They were OK.
0:43:43 > 0:43:49We've re-grouted and just given it a tidy-up and a paint job, really.
0:43:49 > 0:43:54The other rooms have been given a fresh, new look, thanks to a coat of paint.
0:43:54 > 0:44:00Sounds simple enough, but perhaps not when you're new to the property game.
0:44:01 > 0:44:06Yes, I have learnt painting skills and doing a lot more things.
0:44:06 > 0:44:09I have seen Neranja doing grouting and, uh...
0:44:09 > 0:44:17Oh, a lot of things! Plastering some of the properties, so I have learned a lot from Neranja.
0:44:17 > 0:44:20Neranja certainly seems to know what she's doing
0:44:20 > 0:44:24and she didn't overlook the potential of the garden either.
0:44:25 > 0:44:30Two skips later and the house now comes with great outdoor space.
0:44:30 > 0:44:34# Wide, open spaces... #
0:44:35 > 0:44:39With the help of her mum and fiance, the house is looking great.
0:44:39 > 0:44:42They were hoping to do it up in two months,
0:44:42 > 0:44:46but two and a half months later, there is still work to do.
0:44:48 > 0:44:51It's taken a bit longer than I expected.
0:44:51 > 0:44:57We took it a bit easy for a few weeks when we first got the property, so slightly longer than estimated,
0:44:57 > 0:45:01but maybe another two weeks and we should have it completed.
0:45:01 > 0:45:07So, slightly over their original timescale, but despite getting a new boiler,
0:45:07 > 0:45:12they've kept well within their £3,000 budget as they've only spent around £2,000.
0:45:12 > 0:45:18Inorma seems to have done an excellent job keeping Neranja on track.
0:45:18 > 0:45:22Yes, I did manage to keep under control Neranja.
0:45:22 > 0:45:28Especially, she was busy doing the property, she didn't have much time to look for any other properties.
0:45:28 > 0:45:33She's kept control of me here and there, but I've still had my way here and there as well,
0:45:33 > 0:45:36so it's been a bit of give and take.
0:45:36 > 0:45:42Neranja and Inorma always planned to rent out the house once it was completed,
0:45:42 > 0:45:44so luxury made way for practicality.
0:45:44 > 0:45:49But Neranja doesn't think this will put off potential tenants.
0:45:49 > 0:45:55I'm quite confident we'll find someone quite quickly due to the location of the property
0:45:55 > 0:45:59and it's quite a nice size property to maintain and live in, I feel.
0:45:59 > 0:46:05Slightly biased maybe. Let's see what two professionals think.
0:46:07 > 0:46:11First impressions are it's a good, practical, two-bedroom house,
0:46:11 > 0:46:14ideal for first-time buyers looking in the area.
0:46:14 > 0:46:19I think the changes made to the property are very, very good.
0:46:19 > 0:46:23They're simple changes, but exactly the right amount of things to do.
0:46:23 > 0:46:30They've freshened it up with paint. They've changed the doors and drawer fronts. It looks very good.
0:46:30 > 0:46:35Encouraging to hear, but is now the right time to buy a property like this one?
0:46:35 > 0:46:39There is a demand for properties like this in the current market.
0:46:39 > 0:46:45People have started looking again. There's a lot more urgency. Banks are making borrowing a lot easier.
0:46:45 > 0:46:49So first-time buyers have got a good opportunity to make a purchase here.
0:46:49 > 0:46:53Equally, there are plenty of people looking to let in the area as well.
0:46:53 > 0:46:57Neranja and Inorma bought the house for 221,000.
0:46:59 > 0:47:01They spent £2,000 doing it up,
0:47:01 > 0:47:06so any valuation over £223,000 is promising.
0:47:08 > 0:47:14In today's market, I believe the property would re-sell for between £240,000 to £250,000.
0:47:14 > 0:47:20This property could re-sell for between £275,000 to £280,000.
0:47:20 > 0:47:24- Wow!- We didn't expect that much, did we?- No.
0:47:24 > 0:47:27- That's staggering.- Very pleased.
0:47:27 > 0:47:33The plan was to park this property in the portfolio with the two others Neranja had bought
0:47:33 > 0:47:37and rent it out for the next two to three years.
0:47:38 > 0:47:41You could rent the property for about £1,050 per month.
0:47:41 > 0:47:46The property would rent for between £1,050 and £1,100 per calendar month.
0:47:46 > 0:47:51That's a rental income of around 12,000 to 13,000 a year,
0:47:51 > 0:47:54meaning a yield of between 5 and 6%.
0:47:55 > 0:47:58What do they make of that?
0:47:58 > 0:48:03- That's quite reasonable.- Yeah, brilliant. Really, really pleased.
0:48:03 > 0:48:09So, be it re-sale or rental, it seems that this mother-daughter combo is a winning one.
0:48:10 > 0:48:13Yes, I believe we do make a good team.
0:48:13 > 0:48:17We work well together, have very similar ideas
0:48:17 > 0:48:20and when I run off the rails, my mum sort of reins me in,
0:48:20 > 0:48:23so yes, we do make a good team.
0:48:23 > 0:48:27# Together forever and never to part
0:48:27 > 0:48:31# Together forever we two... #
0:48:31 > 0:48:34I'm very proud of my daughter. Very.
0:48:34 > 0:48:40I think because Neranja loved the properties, it rubbed off on me as well.
0:48:40 > 0:48:45Like mother, like daughter. It seems as though Inorma has caught the property bug.
0:48:45 > 0:48:47But is Neranja cured?
0:48:47 > 0:48:51Right now, I'd say I need a break, but I really do love property
0:48:51 > 0:48:56and sort of looking at them and seeing what's what and getting involved, yes.
0:48:56 > 0:49:02I've got a funny feeling Neranja's break from property buying won't last long
0:49:02 > 0:49:07and she'll be back in those auction rooms. And we wish her all the very best with that.
0:49:10 > 0:49:15This land at Chapel Allerton, two miles from Leeds city centre,
0:49:15 > 0:49:18went to auction, but wasn't sold.
0:49:18 > 0:49:22It was later picked up for £50,000 by Vivian.
0:49:22 > 0:49:28The land came with outline planning permission for a three-bedroom, detached house.
0:49:28 > 0:49:31She was hoping to get this changed.
0:49:31 > 0:49:35I'll see if it's worth applying for planning permission for two semis.
0:49:35 > 0:49:40If I think there's a chance, I will do that, and if I don't get it, I'll appeal.
0:49:40 > 0:49:4415 months later, it all looks very pretty,
0:49:44 > 0:49:49but shouldn't there be a house of some description somewhere in that snow?
0:49:49 > 0:49:51# Let it snow
0:49:51 > 0:49:53# Let it snow
0:49:53 > 0:49:55# Let it snow... #
0:49:55 > 0:49:58It looks as though the plans didn't go to plan.
0:49:58 > 0:50:01Originally, we couldn't find the plans.
0:50:01 > 0:50:05The planning office hadn't got any trace of what had happened here,
0:50:05 > 0:50:10so that took a few weeks to sort out and then we did get the plans.
0:50:10 > 0:50:15And we found out the planning history of what had gone on here.
0:50:15 > 0:50:18And that goes back 20 years, the planning history.
0:50:18 > 0:50:22Two semis were refused planning permission 20 years ago.
0:50:23 > 0:50:27Lots of things can change in 20 years
0:50:27 > 0:50:32and just because the planning permission for two semis was turned down then
0:50:32 > 0:50:34doesn't mean it will be now.
0:50:34 > 0:50:39I put in plans for two semis which was rejected.
0:50:39 > 0:50:44I put a second lot of plans in for two semis and again that was rejected.
0:50:44 > 0:50:48Planning permission was refused on over-development of the site.
0:50:48 > 0:50:52Because there's just a small access road here,
0:50:52 > 0:50:56they didn't want more than one property on this piece of land.
0:50:56 > 0:51:01Vivian's dreams of building two semi-detached houses here
0:51:01 > 0:51:06have been twice turned down by the planners, but there was still hope.
0:51:06 > 0:51:12The land was sold with outline planning permission for one three-bedroom, detached house.
0:51:12 > 0:51:16Detailed plans of the house would still need planning approval.
0:51:16 > 0:51:20Was Vivian tempted? After all, she and her husband George were ready
0:51:20 > 0:51:23to roll their sleeves up and get stuck in.
0:51:23 > 0:51:27I said to the architect, "Start doing the plans
0:51:27 > 0:51:31"for a three-bedroom, three-bathroom with a garage
0:51:31 > 0:51:34"on more or less the same footprint."
0:51:34 > 0:51:40He spoke to the planners and we were told that if we put those plans forward, they would be passed.
0:51:40 > 0:51:44That evening at home, I thought, "I might just try selling it."
0:51:44 > 0:51:49So I went on the internet and put one advert on a free internet site.
0:51:49 > 0:51:53And I got four replies within about ten days.
0:51:53 > 0:51:58The second person I brought to look at the land said she would like to buy it.
0:52:00 > 0:52:04And I sold it to her, basically, for £25,000 more.
0:52:04 > 0:52:10So, after all her to-ing and fro-ing with the planners, Vivian decided to pull out of the project
0:52:10 > 0:52:12and put the land back on the market.
0:52:12 > 0:52:18That offer of £25,000 more than she had originally paid for it seemed too good to refuse.
0:52:18 > 0:52:22However, a condition of the sale was that it wouldn't complete
0:52:22 > 0:52:27until the new owner had gained planning permission, but why the change of heart?
0:52:27 > 0:52:32Probably had the market not gone into such decline, I would have stuck out.
0:52:32 > 0:52:36I would have appealed the decision for two semi-detached houses
0:52:36 > 0:52:40and if I'd lost that appeal, I would have built a detached house
0:52:40 > 0:52:45and I think if we go back five years ago,
0:52:45 > 0:52:50you would know that you could spend £150,000 on a build
0:52:50 > 0:52:53and get 250,000 for it.
0:52:53 > 0:52:56But you just don't know now, so...
0:52:58 > 0:53:01Vivian is a shrewd businesswoman.
0:53:01 > 0:53:07After paying around £3,000 in fees, she'll potentially make a pre-tax profit of around £22,000.
0:53:07 > 0:53:11But has this experience put her off property developing?
0:53:12 > 0:53:18No, because basically I've probably spent a day, eight hours perhaps,
0:53:18 > 0:53:23between going to the auction, going to the solicitors to sign the papers
0:53:23 > 0:53:26and showing the land to four people.
0:53:29 > 0:53:31Vivian bought this land for £50,000
0:53:31 > 0:53:35and has accepted an offer of £75,000
0:53:35 > 0:53:40with the sale dependent on the prospective new owner gaining planning permission.
0:53:40 > 0:53:46The new owner paid for Vivian's architect to complete the detailed drawings
0:53:46 > 0:53:48for a three-bedroom, detached house
0:53:48 > 0:53:51which have been submitted to the planners.
0:53:51 > 0:53:54So has she negotiated a good deal?
0:53:54 > 0:53:56What do two local estate agents think?
0:53:56 > 0:54:01Now that I've seen the land and the site and the proposed plans,
0:54:01 > 0:54:03it would be something unusual.
0:54:03 > 0:54:07I would build the house because it would be unusual for the area,
0:54:07 > 0:54:09therefore maximising the profit.
0:54:09 > 0:54:16I think that any planning consent for a detached property on this site
0:54:16 > 0:54:19is not the right way to go.
0:54:19 > 0:54:22In my view, to optimise the site,
0:54:22 > 0:54:28one of the planning consents for two two-bedroom semi-detached
0:54:28 > 0:54:32or two three-bedroom semi-detached would be optimum.
0:54:32 > 0:54:36And Vivian agreed, but as she found out,
0:54:36 > 0:54:41she couldn't get permission to build two semi-detached properties here.
0:54:41 > 0:54:45The land, with planning permission for a three-bed, detached house,
0:54:45 > 0:54:50would be worth in the region of between £75,000 and £80,000.
0:54:50 > 0:54:54The site with planning consent for a large, three-bedroom house
0:54:54 > 0:54:59is probably worth something in the region of £30,000 to £35,000.
0:54:59 > 0:55:01What?!
0:55:02 > 0:55:07You've got to be joking! 30 to 35 to build a three-bedroom, detached house?
0:55:07 > 0:55:13Vivian has already got a very good offer for 75,000.
0:55:13 > 0:55:19If the plans for a three-bedroom, detached house were passed and the house built,
0:55:19 > 0:55:23how much do the experts think it would be worth?
0:55:25 > 0:55:29A detached, large, three-bedroom house would probably sell
0:55:29 > 0:55:33for a figure in the region of £240,000.
0:55:33 > 0:55:39However, to build that house would cost something in the region of £210,000.
0:55:39 > 0:55:44You'd be looking somewhere in the region of between 200,000 and 210,000.
0:55:44 > 0:55:48Um... Well, I would say, in my opinion,
0:55:48 > 0:55:54a house here could be worth anything between 220 and 320.
0:55:54 > 0:55:59If the three-bedroom house was built, would there be any mileage in renting it out?
0:56:02 > 0:56:09I would estimate something in the region of £800 to £850 a month would be an appropriate figure.
0:56:09 > 0:56:15Very popular area for rental. If you were to rent the house out as a three-bed new build, furnished,
0:56:15 > 0:56:21you'd be looking somewhere in the region of anything between 900 and 1,100 a month.
0:56:21 > 0:56:26Yes, I would expect to get between 900 and 1,100 in rent.
0:56:26 > 0:56:30Well, since filming, the plans have been approved
0:56:30 > 0:56:33and the sale has gone through,
0:56:33 > 0:56:37so Vivian bought a plot of land for £50,000
0:56:37 > 0:56:43and sold it on for £75,000 without actually doing anything to it,
0:56:43 > 0:56:47showing that sometimes not developing can still make you money.
0:56:50 > 0:56:55Plenty to think about there. Did those stories inspire you and whet your appetite?
0:56:55 > 0:57:00- We'll have lots more next time on Homes Under The Hammer. Goodbye.- Goodbye.
0:57:16 > 0:57:21Subtitles by Red Bee Media Ltd