0:00:02 > 0:00:04Welcome to Homes Under The Hammer.
0:00:04 > 0:00:07Auctions used to be for just builders and developers.
0:00:07 > 0:00:11But now loads of people go to find what they're looking for.
0:00:11 > 0:00:15Even in these tough times, they find bargains under the hammer.
0:00:40 > 0:00:45Even for the most experienced buyers, auctions can be a nerve-wracking experience
0:00:45 > 0:00:49and you have to make sure you don't get carried away.
0:00:49 > 0:00:54Did today's buyers keep a cool head and get some bargains? Let's see what they bought.
0:00:55 > 0:01:01'This quirky cottage in Exeter has a place for a pig, a tiny stove...'
0:01:01 > 0:01:04And the smallest bathroom I've seen in a long time.
0:01:05 > 0:01:09'This Kent house has taken open-plan living a bit far.'
0:01:09 > 0:01:14Quite spacious, but I think that's down to the fact that there are no doors on this kitchen.
0:01:15 > 0:01:22'And if you head up these imposing stairs in Glasgow, you'll find some stunning accommodation.'
0:01:22 > 0:01:25I think this is really good.
0:01:26 > 0:01:30'All these properties went to auction and we'll find out
0:01:30 > 0:01:35- 'who bought them and what they paid for them when they went under the hammer.'- Sir.
0:01:38 > 0:01:43Today, I'm in glorious Devon and I thought we'd start with a bit of grandeur.
0:01:43 > 0:01:48That is Powderham Castle, home to the Courtenay family and seat of the Earl of Devon.
0:01:48 > 0:01:54Well, after that, I bet you can't wait to see what was up for auction.
0:01:54 > 0:01:58The Powderham Estate lies between the villages of Kenton and Starcross
0:01:58 > 0:02:01on the coast next to the River Exe.
0:02:01 > 0:02:06It's beautiful countryside here, yet within commuting distance of Exeter.
0:02:06 > 0:02:09I'm here to see a Grade 2 listed property.
0:02:11 > 0:02:16Right in the heart of the village of Kenton just opposite the beautiful local church
0:02:16 > 0:02:19is a row of terraced houses.
0:02:19 > 0:02:25I'm not here to see a castle, but something which I think has potential
0:02:25 > 0:02:27to be very interesting indeed.
0:02:27 > 0:02:33A two-bedroomed house, had a guide price of 100,000 quid. Let's go inside.
0:02:33 > 0:02:38Well, a seriously impressive front door. That's what you call a grand entrance!
0:02:38 > 0:02:44Through into the living room. It's nice to have this open fire, but some very strange stuff going on.
0:02:44 > 0:02:49All this glass up the side of the staircase there - unusual.
0:02:50 > 0:02:54Through into a rear kind of sitting room area.
0:02:54 > 0:03:01No natural light in here, other than the stuff coming from the living room and extension to the kitchen,
0:03:01 > 0:03:06and all this stone on the walls makes it feel dark and fairly dingy, then wow, look at that!
0:03:06 > 0:03:12It's a range cooker for small people. It's almost like one of those children's ones.
0:03:12 > 0:03:14Not very practical, I have to say.
0:03:14 > 0:03:18So, all in all, it's kind of quirky.
0:03:19 > 0:03:24At the back, the kitchen is definitely in need of modernisation.
0:03:24 > 0:03:28It's small and there's not really enough room for the units.
0:03:28 > 0:03:33It would be worth opening it up into that second living room to create a kitchen-diner.
0:03:33 > 0:03:39Upstairs, the two bedrooms have plenty of original character, but again space is limited.
0:03:39 > 0:03:43Just imagine trying to squeeze in beds and furniture.
0:03:43 > 0:03:49Well, upstairs, two bedrooms and the smallest bathroom I have seen in a very long time,
0:03:49 > 0:03:53including a very, very odd Japanese-style mosaic bath.
0:03:53 > 0:03:58Why that's there, I don't know. You'd have to be very small to make the most of that.
0:03:58 > 0:04:02I'd probably take that out, put a shower cubicle in its place.
0:04:02 > 0:04:06In terms of moving the bathroom, your options are limited,
0:04:06 > 0:04:12but a shower cubicle would at least improve things from what is very, very, very odd.
0:04:13 > 0:04:19There's another unusual detail about this house that went to auction at a guide price of 100,000.
0:04:19 > 0:04:24It's outside and you can just see it from the upstairs windows.
0:04:24 > 0:04:27Time for a sniff around.
0:04:27 > 0:04:33Well, out at the rear of the property here, it just keeps getting quirkier and quirkier.
0:04:33 > 0:04:39There's this little courtyard, but then here's something you don't see every day.
0:04:39 > 0:04:41This is a Victorian piggery.
0:04:41 > 0:04:45Now, in the days before refuse collections and wheelie bins,
0:04:45 > 0:04:51you'd have a pig out here and you'd feed it scraps from the kitchen and even ash from the fire.
0:04:51 > 0:04:56Then of course, when the time came, a bit of bacon for your sandwiches.
0:04:56 > 0:05:01What would you do with it now? Maybe it could be an additional room or a workshop.
0:05:01 > 0:05:05Or how about a teenager's bedroom? Well, they're usually a pig sty!
0:05:05 > 0:05:11I'm not sure how strong the outbuilding housing the former piggery is.
0:05:11 > 0:05:17Lean back on the wall and it might collapse, but through the sliding doors is another room
0:05:17 > 0:05:22which has running water, so that could be converted into something useful.
0:05:22 > 0:05:26To access the garden, you have to head down this communal path.
0:05:26 > 0:05:30There's a shed and a garage which are reached through a car park
0:05:30 > 0:05:34and plenty of lawn to accommodate visiting wildlife.
0:05:35 > 0:05:38To find out more about the local market,
0:05:38 > 0:05:42we asked the auctioneer to come and tell us more.
0:05:43 > 0:05:47Kenton is a really pretty little village.
0:05:47 > 0:05:51Most of the houses in Kenton are going to be a bit on the older side.
0:05:51 > 0:05:55It's the village that served Powderham Castle Estate
0:05:55 > 0:05:59just about three-quarters of a mile along the road.
0:05:59 > 0:06:05You can get not as much for your money here as pretty well anywhere. It's quite a hot spot.
0:06:05 > 0:06:10So, a desirable place to live and there's high demand for property around here.
0:06:10 > 0:06:14But I'm keen to know how much the house could be worth.
0:06:14 > 0:06:17If done up to a reasonable letting standard,
0:06:17 > 0:06:22you could be looking at as much as £675 a calendar month.
0:06:22 > 0:06:26If the new owner did an absolutely stunning job,
0:06:26 > 0:06:31the property might be worth a little bit over £200,000,
0:06:31 > 0:06:35but I feel that's about the cap, whatever you do.
0:06:37 > 0:06:42So, the garden, the garage, even the little shed there,
0:06:42 > 0:06:49I mean, it's just all the icing on the cake of what is a fascinating and quite charming little property,
0:06:49 > 0:06:52close to Exeter, a lovely little village,
0:06:52 > 0:06:57and for 100,000 quid, I'm sure it got them buzzing when it went under the hammer.
0:06:57 > 0:07:0051...
0:07:00 > 0:07:04What a pretty, pretty little house in Church Street in Kenton!
0:07:04 > 0:07:10I'm not going to go less than the guide price for that house. Who's going to say 100? 100 we've got.
0:07:10 > 0:07:14There it is, at 100. 102, front row. 102. 104.
0:07:14 > 0:07:17I'll focus on you chaps. 104. 106.
0:07:17 > 0:07:20108. 110.
0:07:20 > 0:07:23112. 14.
0:07:23 > 0:07:26And 16. 118.
0:07:26 > 0:07:29120. 122.
0:07:29 > 0:07:33124. 126. 128.
0:07:33 > 0:07:36130. 132.
0:07:36 > 0:07:39132 to my right. 134.
0:07:39 > 0:07:42136. 136.
0:07:42 > 0:07:45136 is you. 138. 140.
0:07:45 > 0:07:47140 I've got.
0:07:47 > 0:07:50On the aisle, 141. 142.
0:07:50 > 0:07:53143. 4.
0:07:53 > 0:07:55And 5. And 6.
0:07:55 > 0:07:587. 147.
0:07:58 > 0:08:00148. 149.
0:08:00 > 0:08:04150. And 1.
0:08:04 > 0:08:07152. 53.
0:08:07 > 0:08:11153. 153's at the back. 153.
0:08:11 > 0:08:144. 154.
0:08:14 > 0:08:19155. 155. A little one if it'll help you back?
0:08:19 > 0:08:21155 and a half? 155 and a half.
0:08:21 > 0:08:26At 155 and a half, all done. It will be sold, make no mistake.
0:08:26 > 0:08:32At 155 and a half, glancing back at the phone. At 155 and a half... Sir, yours. Congratulations. Well done.
0:08:32 > 0:08:39'That top bid of 155,500 was made by Richard and his wife Jill who live on a farm.
0:08:39 > 0:08:43'They've renovated properties in the past and Richard's a builder.
0:08:43 > 0:08:49'They're long-term foster carers and bring up their two daughters along with two foster children.
0:08:49 > 0:08:56'They've bought this place as an investment for the future. I met them back at the quirky property.'
0:08:56 > 0:09:00- Richard, Jill, lovely to meet you both. Congratulations.- Thank you.
0:09:00 > 0:09:06- Tell me why you bought this place. - We've been looking for a property to buy at auction for a few months.
0:09:06 > 0:09:12We missed one at the last auction and I saw this one on Saturday afternoon on the internet.
0:09:12 > 0:09:16I came down with my youngest foster child, had a look at the outside
0:09:16 > 0:09:19and my little boy was really enthusiastic.
0:09:19 > 0:09:23Because I'm buying this property with some money from my late mother,
0:09:23 > 0:09:31it was very important that it felt right using her money for something we'd enjoy as a family.
0:09:31 > 0:09:35Tell me more about you two. What do you do when you're not doing this?
0:09:35 > 0:09:42Richard and I are both long-term foster carers. We've been working for Devon County Council for ten years.
0:09:42 > 0:09:46- We do baby placements as well. - We have little ones and teenagers.
0:09:46 > 0:09:53We live on a farm and they've got lots of space to run around and scream and shout and be children.
0:09:53 > 0:09:58- Animals as well?- Yeah, we've got sheep, dogs, cats.
0:09:58 > 0:10:02There's a menagerie. There's lots of stuff we have.
0:10:02 > 0:10:05'Thanks to the money left to Jill by her mum,
0:10:05 > 0:10:09'they've now got this interesting property to look after as well.'
0:10:09 > 0:10:15- Richard, what did you think when you first saw it?- I saw the property needed a lot of work doing to it.
0:10:15 > 0:10:21It's going to take a long time to do it, but it's a lovely property in a great setting.
0:10:21 > 0:10:24- It's well worth a go. - Have you done this before?
0:10:24 > 0:10:28Yeah, it's not the first time I've done things like this.
0:10:28 > 0:10:32I restore old buildings, sometimes do churches, barn conversions.
0:10:32 > 0:10:37- Are you a builder? - Yes, so it doesn't present too much of a challenge to me.
0:10:37 > 0:10:41There's lots of pitfalls on the way, but nothing we can't get over.
0:10:41 > 0:10:44Tell me what you'll do to it.
0:10:44 > 0:10:49We'd like to restore the property as much as we can back to how it would have been in the 1890s.
0:10:49 > 0:10:54We'd like to take out the modern '70s style fireplaces
0:10:54 > 0:11:00and hopefully, there'll be a nice, Victorian brick fireplace underneath, possibly put wood burners in there.
0:11:00 > 0:11:06We need to put a new bathroom in, probably move the bathroom, so it works more effectively.
0:11:06 > 0:11:10How are you going to reconfigure the bathroom and the bedrooms?
0:11:10 > 0:11:15The end bedroom will become the bathroom and the bathroom will become the bedroom.
0:11:15 > 0:11:20We'll move walls and the bedroom will have double-aspect windows.
0:11:20 > 0:11:26- You've worked out the plans for this?- I've measured the rooms up and yes, it will fit in.
0:11:26 > 0:11:29What about the courtyard and the old piggery?
0:11:29 > 0:11:35- I think the piggery is going to lend itself to a really nice, Victorian-style kitchen.- A kitchen?
0:11:35 > 0:11:39Yes, because it's south-facing, you've got lots of light
0:11:39 > 0:11:45and to link the piggery to the main house, we'd like to put in a passageway with a glass roof
0:11:45 > 0:11:49and large double doors or a single door to let the light in.
0:11:49 > 0:11:53'Sounds wonderful. Getting the extra light into the house will help
0:11:53 > 0:11:56'because at present, it's very dark.
0:11:56 > 0:12:02'But as it's a listed building, Richard and Jill will need to liaise closely with the planning office.'
0:12:02 > 0:12:05So, any idea how much this is going to cost?
0:12:06 > 0:12:13- Well, I think 20,000.- I think we've got to allow at least 25,000 because I want to do it properly.
0:12:13 > 0:12:19I want to have good quality materials and I want it to last, so it's not just a quick "do up to sell".
0:12:19 > 0:12:25- We want to keep this property. - What's the plan? Are you going to live in it or rent it out?
0:12:25 > 0:12:29We've got a very good friend who's going to rent it from us.
0:12:29 > 0:12:34She lives just up the road with her partner. She's got a dog and two cats and no garden.
0:12:34 > 0:12:38They're going to help us do some of the work
0:12:38 > 0:12:44and they can say they've helped in creating their home. It's our house, but it's going to be their home.
0:12:44 > 0:12:49It's great that you found the house and the house found you.
0:12:49 > 0:12:53- I'm really looking forward to seeing how you get on.- Thanks very much.
0:12:53 > 0:12:56# I go ahead and smile... #
0:12:59 > 0:13:05So there you go, Richard and Jill falling for the obvious charms of this place and who can blame them?
0:13:05 > 0:13:08They've got a tenant lined up to move in already.
0:13:08 > 0:13:14Before that happens, they've got to sort the place out and that means listed buildings approval, etcetera.
0:13:14 > 0:13:18How are they going to get on? Find out later in the show.
0:13:21 > 0:13:27For the next property that went under the hammer, one snowy day in winter,
0:13:27 > 0:13:31I visited the village of Tonge, two miles east of Sittingbourne in Kent.
0:13:31 > 0:13:35It's very rural with no train station or shops -
0:13:35 > 0:13:39just a few houses, an old mill and a local parish church.
0:13:39 > 0:13:43And like every good village, there's folklore to explain its name.
0:13:43 > 0:13:48Local legend has it that a man wished to marry the chief's daughter.
0:13:48 > 0:13:52Now, the chief didn't really approve of this marriage,
0:13:52 > 0:13:57so only granted the man as much land that could be held in a bull's hide.
0:13:57 > 0:14:03Now, being crafty, the man cut the hide into strips or thongs and he laid them in a large circle,
0:14:03 > 0:14:06thereby holding quite a large area,
0:14:06 > 0:14:12and this is apparently the origin of the village's unusual name - Tonge.
0:14:12 > 0:14:18OK, enough local history there. Let's take a look at what I'm actually here to see today.
0:14:18 > 0:14:21# We're just another winter's tale... #
0:14:21 > 0:14:28The property is right next door to the Church of St Giles, hence being called St Giles Cottages.
0:14:28 > 0:14:33Well, it's this three-bedroom, ex-housing association semi
0:14:33 > 0:14:36and it was built in the 1940s.
0:14:36 > 0:14:41Not the greatest kerb appeal here - bit of a parking lot out there,
0:14:41 > 0:14:45but it had a guide price at auction of £85,000 to £90,000.
0:14:45 > 0:14:48Let's take a look inside.
0:14:48 > 0:14:54The house is at the end of the row and has a large back garden and double-glazed windows.
0:14:54 > 0:14:58Those are both plus points, but it hasn't got much character.
0:14:58 > 0:15:04Oh, now, straight away, you can see this house does need a lot of work.
0:15:04 > 0:15:08It's completely dated, lots of old woodchip wallpaper.
0:15:08 > 0:15:12Even though there is snow on the ground and it's a freezing cold day,
0:15:12 > 0:15:15this house is extremely cold inside.
0:15:15 > 0:15:21I don't think the heating would have been on in here for a long time. It feels it's been empty for ages.
0:15:21 > 0:15:24You have two reception rooms here, quite a spacious area,
0:15:24 > 0:15:29but I think that's down to the fact that there are no doors on this kitchen space.
0:15:29 > 0:15:35Look at all these old units, really tatty. The whole thing needs to be ripped out and upgraded.
0:15:35 > 0:15:40But you do have a couple of little rooms at the back of the property.
0:15:40 > 0:15:46I would say they're only single-skin and if you want to use them as an integral part of the house,
0:15:46 > 0:15:51you'd need to get that sorted, so you have to put some money aside for some work there.
0:15:51 > 0:15:57Let's hope anyone tempted by the guide price of £85,000 to £95,000 remembered to factor that in.
0:16:00 > 0:16:04One issue that definitely needs to be addressed is the heating system.
0:16:04 > 0:16:10Now, you may think this open fire in the lounge will be romantic on a cold winter's night
0:16:10 > 0:16:13and a bit of a feature to the property,
0:16:13 > 0:16:17but it's the main source of heating for this whole house.
0:16:17 > 0:16:19There's a back boiler behind this
0:16:19 > 0:16:26and with this system, if you want the house to be warm when you get up first thing in the morning,
0:16:26 > 0:16:32you'll have to stoke the fire just before going to bed, which could be a bit of a hassle.
0:16:32 > 0:16:38The fire might go out and as it's coal, it will produce a lot of ash and will require regular cleaning,
0:16:38 > 0:16:44so it's not to everybody's taste and it will use about one to two bags of coal for a full day's heating.
0:16:44 > 0:16:51But you're not on a gas mains here, so replacing this with gas central heating is not really an option.
0:16:51 > 0:16:55So this lovely, remote, country location does have its drawbacks.
0:16:55 > 0:16:59Not all the mains services are available. Gas is one,
0:16:59 > 0:17:03but there is another, a clue to which is in the front garden.
0:17:03 > 0:17:10If you're wondering what this surfboard is doing here, it's the cover for a cesspit underneath
0:17:10 > 0:17:14because with this property, you're not on the main sewerage system.
0:17:14 > 0:17:20Luckily, it is quite a modern unit, so it won't need to be pumped out and emptied too often.
0:17:20 > 0:17:24I suppose it's all part and parcel of living in a rural location.
0:17:27 > 0:17:31Back inside and upstairs is a rather dated bathroom
0:17:31 > 0:17:33and three bedrooms.
0:17:33 > 0:17:40Two are good-sized doubles which, like the whole house, need updating and re-decorating.
0:17:40 > 0:17:44There's also this third bedroom which is a fair-sized single.
0:17:44 > 0:17:50It's a well-proportioned family home for that guide price of 85,000 to 90,000,
0:17:50 > 0:17:55but, as is often the case, the guide price reflected a potential problem here.
0:17:57 > 0:18:00Now, this house also has a bit of a hidden secret.
0:18:00 > 0:18:03Underneath this brick lies an Airey home.
0:18:03 > 0:18:10Not the "airy" you may be thinking of, but it's named after Sir Edwin Airey who developed the design.
0:18:10 > 0:18:14These were built after World War Two when resources were limited
0:18:14 > 0:18:17and they could be built with unskilled labour.
0:18:17 > 0:18:23Basically, they consist of a metal frame with pre-cast concrete panels slotted between.
0:18:23 > 0:18:27It's what is known as non-standard construction.
0:18:27 > 0:18:33Unfortunately, the metal frames tend to corrode over time and it makes this structure unstable,
0:18:33 > 0:18:39so not great and very difficult to obtain a mortgage on if remedial work isn't done.
0:18:39 > 0:18:44Fortunately, this one was repaired about 20 years ago with a brick skin,
0:18:44 > 0:18:47so getting finance should be possible,
0:18:47 > 0:18:51though in today's economic climate, it could still be a bit tricky.
0:18:53 > 0:18:56Time to get the advice of a local estate agent.
0:18:56 > 0:19:00With no mains gas or sewerage and non-standard construction,
0:19:00 > 0:19:03it's definitely a house with some hang-ups.
0:19:03 > 0:19:06Where would be the best place to start?
0:19:06 > 0:19:09The things I would change would be the heating.
0:19:09 > 0:19:13The coal would put some people off, so maybe change that to oil.
0:19:13 > 0:19:16The kitchen definitely and the bathroom.
0:19:16 > 0:19:22The type of construction shouldn't be problematic any more, now that it has been bricked around.
0:19:22 > 0:19:27One question high on the list of buy-to-let investors is the rate of return.
0:19:27 > 0:19:33Would it make a good rental investment? What rent could the property generate?
0:19:33 > 0:19:37Due to the transport links and the location of the village,
0:19:37 > 0:19:41I wouldn't say that there would be high demand for rental.
0:19:41 > 0:19:46I still think it would achieve around the figure of £725 per calendar month.
0:19:46 > 0:19:48What about the resale value?
0:19:48 > 0:19:54I would value this property, in good condition, between £135,000 to £140,000.
0:19:54 > 0:20:00Well, plenty of challenges here and some interesting options to think through.
0:20:00 > 0:20:05So, what to do with this property? A complete refurbishment is obviously needed.
0:20:05 > 0:20:09But would you rent this out or do it up and sell on?
0:20:09 > 0:20:15The non-standard construction, although remedied, it still might put off any budding buyers.
0:20:15 > 0:20:21But if you opted to rent this out, this rural location might limit its appeal to potential tenants.
0:20:21 > 0:20:26So who ended up bidding for this three-bed semi and what would they do with it?
0:20:26 > 0:20:28Let's find out at the auction.
0:20:28 > 0:20:33Guide of 85-90. Where do you want to start me? Start me at £85,000?
0:20:35 > 0:20:39Start me at 80? 80,000? 80, I'm on the way. In the corner, £80,000.
0:20:39 > 0:20:43At £80,000, I'm bid. It's with you, sir, at £80,000.
0:20:43 > 0:20:46I'm looking for 82. 82 I've got.
0:20:46 > 0:20:49Sitting down, 82. And 4. 84.
0:20:49 > 0:20:52And 6. 86 in a fresh place.
0:20:52 > 0:20:5588 against both of you at the back.
0:20:55 > 0:20:56At £86,000, I'm bid.
0:20:56 > 0:21:03I thought it would make more than this. It's a good buy. At £86,000 I'm selling for the first time.
0:21:03 > 0:21:0688 at the back again. Try 90. 90 I've got.
0:21:06 > 0:21:12And 2? 92 is against you. £90,000 I've got standing on my right-hand side for the first time again.
0:21:12 > 0:21:17For the second time... 92 I've got. And 4. 94.
0:21:17 > 0:21:1994. And 6? 96?
0:21:19 > 0:21:24At 94 then. We'll say it again, for the first time at £94,000...
0:21:24 > 0:21:28Second time at £94,000. Are you coming back one more time?
0:21:28 > 0:21:33For the third and final time at £94,000. Are you all done?
0:21:33 > 0:21:36It's yours, sir, for 94,000.
0:21:36 > 0:21:41'That final successful bid of 94,000 was made my Phil.
0:21:41 > 0:21:45'He works in London as an asset manager for private clients.
0:21:45 > 0:21:50'He's bought a few investment properties, but not for his own portfolio.
0:21:50 > 0:21:55'I met up with him to find out what was the attraction of this one.'
0:21:55 > 0:22:02- Why did you want to buy this?- I'm looking to acquire a few properties. This is the third one I've bought.
0:22:02 > 0:22:05I'm buying a property portfolio for my wife.
0:22:05 > 0:22:11She doesn't work and I'm taking advantage of the tax rates, so I'm building a few investments for her.
0:22:11 > 0:22:16I'm an investment manager, so it's what I do, but I did break a few rules here.
0:22:16 > 0:22:20Tell me about the rules you've broken.
0:22:20 > 0:22:26What I did do, against all the rules of investment management where you do research before you make a purchase,
0:22:26 > 0:22:29I hadn't even seen the property when I made the purchase.
0:22:29 > 0:22:34That's our number one rule at Homes Under The Hammer. Did you read the legal pack?
0:22:34 > 0:22:39I hadn't even read the legal pack. I blame my brother-in-law David.
0:22:39 > 0:22:44I was with him at the auction and he had done a little bit of research on this.
0:22:44 > 0:22:48He said it looked like a good one. I knew where it was. I'm quite local.
0:22:48 > 0:22:54- Why did he do the research? Was he going to buy it?- Yeah, but he got caught between properties.
0:22:54 > 0:23:00He went anyway, even though he couldn't bid at the time, so I took him on trust and I started bidding.
0:23:00 > 0:23:04What did you think when you viewed this property for the first time?
0:23:04 > 0:23:10I was a bit concerned because I'd seen the paperwork by then that had come from the legal packs.
0:23:10 > 0:23:17This house was described as an "Airey house" which are prone to all sorts of problems, but when I came here,
0:23:17 > 0:23:22I saw that it had a brick skin and the work had been done 20 years ago.
0:23:22 > 0:23:26- So the good news with that is it's a mortgageable house?- Yes.
0:23:26 > 0:23:31- It's saleable, so that's a huge tick.- It's not my intention, though, to sell it.
0:23:31 > 0:23:35Because I'm building a property portfolio, I'll rent it.
0:23:35 > 0:23:39'Phil's bought the property for his wife's investment portfolio,
0:23:39 > 0:23:43'but he'll manage the refurbishment on her behalf.'
0:23:44 > 0:23:48So, to what standard are you going to renovate this?
0:23:48 > 0:23:53- At the moment, it can only go one way and that's up!- You've seen the hallway. I want a Titanic moment.
0:23:53 > 0:23:59You know they're in the old wreck at the bottom and it magically turns back into the Titanic?
0:23:59 > 0:24:04- It's going to look something like that.- You really are going to make it look fantastic?
0:24:04 > 0:24:06Better.
0:24:06 > 0:24:12'I'm not sure if turning this wreck of a property into a luxury liner is the best approach.
0:24:12 > 0:24:17'Phil could end up in icy water as there are some burning issues.'
0:24:17 > 0:24:21- It's freezing in this house on a day like today.- It is freezing.
0:24:21 > 0:24:28- How are you going to keep warm in this house?- I'm not sure how warm it gets, even when the heating's on.
0:24:28 > 0:24:32I would be interested to see if I can put in an alternate burner
0:24:32 > 0:24:36that could burn any sort of coal or wood. It could be a cheaper option.
0:24:36 > 0:24:42- What budget have you got to spend on this property?- I didn't want to spend more than £100,000,
0:24:42 > 0:24:49so I was getting near to the top of my limit on the purchase. I wanted to squeeze in, if I can, under that.
0:24:49 > 0:24:53I've acquired a kitchen which will be fitted within a couple of weeks,
0:24:53 > 0:24:58but obviously tiling and carpets, it's relatively cheap and most of it I'll do myself.
0:24:58 > 0:25:04How long do you think it's going to take you to get the house completed, to get it out on the rental market?
0:25:04 > 0:25:09You don't want to be sitting on a property like this for too long because you're losing money,
0:25:09 > 0:25:12so I'll get it done quite quickly.
0:25:12 > 0:25:16The fact I'm seeing you today will make sure my schedule is tighter,
0:25:16 > 0:25:20- but I intend to get it done... - Oh, yes.- ..within six weeks.
0:25:20 > 0:25:26- The pressure's on from today.- Thank you.- I'm excited for you and it'll be fantastic to see the outcome here.
0:25:26 > 0:25:29- Congratulations. - Thank you very much.
0:25:29 > 0:25:33Remember, most of an iceberg is invisible as it's below the water.
0:25:33 > 0:25:37I wonder what problems will surface here for Phil?
0:25:37 > 0:25:42In his own words, Phil admits he broke a few rules with this property.
0:25:42 > 0:25:48He didn't view it before buying it and he did no research, so will this house be his Titanic?
0:25:48 > 0:25:55Will it be a matter of sink or swim? You can find out what happens later on in the programme.
0:25:56 > 0:26:02'Someone could reach dizzying heights with this spacious office accommodation in Glasgow.'
0:26:02 > 0:26:04Big, high ceilings. We like that.
0:26:07 > 0:26:12'Back in Sittingbourne, Kent, has Phil caught the property auction bug?'
0:26:12 > 0:26:16I like the vibe. I think you get some good bargains.
0:26:17 > 0:26:22'But first, we return to Exeter where Richard and his builder have been treading carefully.'
0:26:22 > 0:26:25The footprint upstairs has changed.
0:26:28 > 0:26:33Earlier, Richard and Jill had bought this two-bedroom, Grade 2 listed, terraced cottage
0:26:33 > 0:26:39in the Devon village of Kenton for £155,500.
0:26:39 > 0:26:42They used money Jill had inherited from her mother.
0:26:42 > 0:26:46The couple live on a farm and have renovated properties in the past.
0:26:46 > 0:26:51They're both long-term foster carers and have two daughters of their own.
0:26:51 > 0:26:55They planned to convert the old piggery at the back of the cottage,
0:26:55 > 0:26:58change the layout upstairs and let it out to friends.
0:26:58 > 0:27:04Well, it's now six months later. The conversion is finished and what a transformation!
0:27:04 > 0:27:12With help from their daughter's boyfriend Lyle, who is a bricklayer, Richard has transformed the cottage.
0:27:12 > 0:27:18That middle room next to the kitchen that struggled to get any daylight is now really bright.
0:27:18 > 0:27:22The former kitchen is now a living area.
0:27:29 > 0:27:33Upstairs, the small bedroom has become the bathroom
0:27:33 > 0:27:37and the original bathroom is now the second bedroom.
0:27:37 > 0:27:41Walls have been moved and that '70s fireplace has been replaced
0:27:41 > 0:27:45with a Victorian one Richard found on an auction website for £74.
0:27:45 > 0:27:48What a bargain!
0:27:48 > 0:27:54But the former piggery and utility room outside has seen the most dramatic alteration.
0:27:54 > 0:27:59It's now the kitchen and is directly connected to the house.
0:27:59 > 0:28:03This used to be the piggery, but now we've turned it into a kitchen.
0:28:03 > 0:28:07It links to the house via a glass passageway which you'll see later.
0:28:07 > 0:28:12We've restored the beams, we've put a new roof on, insulated all the walls
0:28:12 > 0:28:14and absolutely rebuilt everything.
0:28:14 > 0:28:18This is probably one of the favourite rooms that we have.
0:28:18 > 0:28:23It's great. Linking the new kitchen to the original cottage,
0:28:23 > 0:28:28this glass-roofed passageway is just wide enough for a table. What a lovely spot for breakfast!
0:28:28 > 0:28:34But they had to make some compromises to their plans due to the Grade 2 listed status.
0:28:34 > 0:28:41Yes, our original idea was to take down the wall from the first room in the front of the house
0:28:41 > 0:28:47to actually join the middle room and make a large sitting room at the front of the property.
0:28:47 > 0:28:53The listing officer didn't want us to do that as that was the original wall when the house was built in 1857.
0:28:53 > 0:28:58But we were allowed to take out the further wall
0:28:58 > 0:29:02which was originally the outside wall of the property.
0:29:02 > 0:29:06They've still managed to create a stunning home from this cottage,
0:29:06 > 0:29:09180 years after the first brick was laid.
0:29:09 > 0:29:14How hands-on has Lyle been? When did he start to get involved?
0:29:14 > 0:29:19Right from the start near enough, just knocking things about, rebuilding them,
0:29:19 > 0:29:25generally rebuilding more as well, exposing new things and just kept going on and on really.
0:29:25 > 0:29:31Upstairs, we've taken the bathroom out of the bedroom and then swapped them all around,
0:29:31 > 0:29:35so the footprint upstairs has totally changed as well.
0:29:35 > 0:29:41This was the original bathroom. The wall came along here and finished in a triangular shape here.
0:29:41 > 0:29:45So we've reconfigured all of this now, we've moved the wall back,
0:29:45 > 0:29:49pinched a little bit of room from the bedroom next door
0:29:49 > 0:29:55and made the second bedroom into a bathroom, so that's a lot bigger and more usable.
0:29:58 > 0:30:04At the back of the kitchen, a pathway leads to the garden with its garage and shed.
0:30:04 > 0:30:09It's been cleared right back and you can now really appreciate how large the plot is.
0:30:09 > 0:30:14But what about the budget? Did they keep that under control?
0:30:14 > 0:30:17I think we've blown the budget really.
0:30:17 > 0:30:23My wife said 25,000. I think we've probably gone 28,000.
0:30:23 > 0:30:30Apart from a few details, the house is done, so are their friends ready to move in and rent it?
0:30:30 > 0:30:32No, that changed a little bit.
0:30:32 > 0:30:38They decided not to take over the property, but it's good for us in a sense
0:30:38 > 0:30:42because we're going to holiday-let it and get some enjoyment out of it.
0:30:42 > 0:30:46Time to hear what two local property experts think of this cottage
0:30:46 > 0:30:49after its comprehensive overhaul.
0:30:49 > 0:30:51The changes are spectacular.
0:30:51 > 0:30:55It really is special. There's so much light now.
0:30:55 > 0:30:59It has been sympathetically renovated to a very high standard.
0:30:59 > 0:31:03I like the linking up of the old piggery, which is now the kitchen.
0:31:03 > 0:31:08There's now two proper reception rooms and they've brought the kitchen out into this space
0:31:08 > 0:31:12which is by the garden with lightness and freshness again. It's wonderful.
0:31:12 > 0:31:19On the first floor, there are now two good-sized bedrooms and a pleasant-sized family bathroom.
0:31:19 > 0:31:23There'll be good demand for rental. I'd expect a rent of £750 a month.
0:31:23 > 0:31:26On a per calendar monthly basis...
0:31:26 > 0:31:32you could probably tiptoe towards 650...yeah, around £650 per calendar month.
0:31:32 > 0:31:36There's potentially a good income all year round here.
0:31:36 > 0:31:40Will that tempt Jill to rent it out after all?
0:31:40 > 0:31:44Probably later. We'll still go for the holiday let to begin with,
0:31:44 > 0:31:47so we can enjoy it, then possibly in a couple of years.
0:31:47 > 0:31:49Is that feasible?
0:31:49 > 0:31:55The property would work well as a holiday let. It's only six miles from the Devon coast at Dawlish.
0:31:55 > 0:32:00I would expect to achieve in the high season around £550 per week.
0:32:00 > 0:32:07For the peak holiday weeks, you could be looking to achieve getting on for £650 a week or maybe even 675.
0:32:07 > 0:32:12- That's very good.- We'll go for the second one. Lovely.- Excellent.
0:32:12 > 0:32:15Great. They can continue to use the cottage themselves
0:32:15 > 0:32:19and get some income in the peak summer holiday period.
0:32:19 > 0:32:22But what's the property now worth?
0:32:22 > 0:32:28Remember, they paid £155,500 at the auction and have spent £28,000 on the refurbishment,
0:32:28 > 0:32:32making £183,500 in total.
0:32:32 > 0:32:37If the house was mine and I was going to sell it, I'd put it on the market at £250,000
0:32:37 > 0:32:42and I'd hope to get... I'd hope to get above 235,000.
0:32:42 > 0:32:48A similar property has sold recently for £245,000 and I would expect to achieve a figure in that region.
0:32:48 > 0:32:56Based on 245,000, that's a gross profit of £60,000 before the usual selling expenses.
0:32:56 > 0:33:01Jill's made good use of her inheritance, so would she take the money?
0:33:01 > 0:33:07I don't think we'd ever really want to sell. I would like to be able to pass this on to my grandchildren.
0:33:07 > 0:33:10The fact that Richard and Lyle have worked so hard,
0:33:10 > 0:33:14I think it would be really nice for it to stay in the family.
0:33:14 > 0:33:19We feel really welcome and we belong here and we weren't expecting that.
0:33:19 > 0:33:26I may have lost my mum, but I feel we've gained other friends which she would be really happy about.
0:33:30 > 0:33:35I'm here to see a property that was recently marketed for 150,000 quid
0:33:35 > 0:33:39and yet it went to auction with a guide price of just 98,000.
0:33:39 > 0:33:44You know what, the location? Right in the centre of Glasgow!
0:33:44 > 0:33:52With a population of over 580,000, Glasgow is Scotland's largest city and the commercial capital.
0:33:52 > 0:33:59It boasts some stunning architecture and the property I'm here to see is on West Regent Street
0:33:59 > 0:34:03in this imposing building right in the heart of the city.
0:34:03 > 0:34:09It was residential, but like many city centre houses in Glasgow, has been converted into offices.
0:34:09 > 0:34:14It was just the first floor that went under the hammer, guided at £98,000,
0:34:14 > 0:34:17and you reach it up these lovely stairs.
0:34:18 > 0:34:24A reasonably impressive communal area creates the right impression, then into the office.
0:34:24 > 0:34:29Big, high ceilings, then lots of little rooms darting around all over the place,
0:34:29 > 0:34:33including this one which I imagine at some stage was a boardroom.
0:34:33 > 0:34:36This looks like wood panelling. It is wallpaper.
0:34:36 > 0:34:43The building is B-listed, so you'll have to get approval before you do things like changing windows.
0:34:43 > 0:34:48You've got to factor that into your costs, but as offices go,
0:34:48 > 0:34:51I think this is really good.
0:34:51 > 0:34:57A property that is Category B listed in Scotland is the same as a Grade 2 listing in England
0:34:57 > 0:35:01and means any modifications have to be approved.
0:35:01 > 0:35:06At the front, this big room has great views out on to the busy city.
0:35:06 > 0:35:09I love this old "enquiries" window.
0:35:09 > 0:35:13Next door, there's a second slightly smaller room,
0:35:13 > 0:35:17but it has lots of light coming in through the lovely window.
0:35:17 > 0:35:21There's another much smaller room that connects the two big rooms.
0:35:21 > 0:35:26It could make an ideal kitchen for staff, perfect for making cups of coffee.
0:35:26 > 0:35:30You could always knock down a wall or two and make it more open-plan.
0:35:30 > 0:35:34But do remember it's a B-listed building,
0:35:34 > 0:35:38so there could be issues which you would need to check out.
0:35:40 > 0:35:43Hello!
0:35:43 > 0:35:45- HIGH-PITCHED VOICE: - Yes, can I help?
0:35:45 > 0:35:48What business could you run here?
0:35:48 > 0:35:51Well, any sort of business. Why?
0:35:51 > 0:35:53Wouldn't parking be a problem?
0:35:53 > 0:35:58Yeah, but you're in the centre of the city. You've got great transport links.
0:35:58 > 0:36:00But what kind of business could you run here?
0:36:00 > 0:36:06Any kind of business, a start-up, an existing one. We're closing for lunch. I haven't got time for this!
0:36:06 > 0:36:08Charming(!)
0:36:08 > 0:36:14There are plenty of options here. Even the toilets are already installed.
0:36:14 > 0:36:19You might want to replace them with something more modern, but at least the plumbing is in place.
0:36:21 > 0:36:26So this property is not sending out any warning signals.
0:36:26 > 0:36:30What can a local property expert tell us about it?
0:36:30 > 0:36:32It has an interesting history.
0:36:32 > 0:36:36It's not typical of a city centre building in Glasgow.
0:36:36 > 0:36:38It dates from the mid-19th century.
0:36:38 > 0:36:44It was converted around the turn of the century to offices from a residential use.
0:36:44 > 0:36:48Although it's still got a lot of character, it's in a sorry state,
0:36:48 > 0:36:52so will need quite a bit of attention.
0:36:52 > 0:36:56It's tired, dated, it has suffered neglect to internal maintenance,
0:36:56 > 0:37:03but it certainly has potential to be improved and to be a very good self-contained office suite.
0:37:03 > 0:37:07I think you could be looking presently to achieve a rental rate
0:37:07 > 0:37:12per square foot of around £10, rising to £12 per square foot per annum,
0:37:12 > 0:37:16so I think presently somewhere between £12,500 to £13,000 per annum,
0:37:16 > 0:37:21rising to somewhere in excess of £15,000 per annum on refurbishment.
0:37:21 > 0:37:25The property went to auction at a guide price of £98,000,
0:37:25 > 0:37:31so if it was bought for around that guide price and refurbished, how much could it then be worth?
0:37:31 > 0:37:37I think if a refurbishment was carried out comprehensively to a good standard,
0:37:37 > 0:37:41there's a realistic prospect that the value could increase
0:37:41 > 0:37:46and I could offer this to the market at offers in excess of £130,000 at that stage
0:37:46 > 0:37:49with the prospect of achieving closer to £150,000.
0:37:49 > 0:37:54Well, maybe someone will be cashing in here again. We'll have to see.
0:37:56 > 0:38:02There's a bit of work to be done, but for an office in this fantastic location with lots of character
0:38:02 > 0:38:08and a great guide price, it's a superb one to go for. Let's see who spotted it at the auction.
0:38:09 > 0:38:12Number 37.
0:38:12 > 0:38:14Excellent-sized office
0:38:14 > 0:38:20with internal floor space of 1,277 square feet.
0:38:20 > 0:38:23100,000, is it? Commercial investment again.
0:38:23 > 0:38:2799, is it? Start me away on Lot number 37 in the catalogue?
0:38:27 > 0:38:3180, there we go. 80 bid start. 80,000 I have.
0:38:31 > 0:38:3380,000. Bid of 80. 1.
0:38:33 > 0:38:3781,000. 82 bid. 82,000.
0:38:37 > 0:38:4083 bid. At 83,000.
0:38:40 > 0:38:44At 83,000. Bid of 83. 84 now, commercial investment?
0:38:44 > 0:38:48At 84. Bid of 84. 85,000. 85,000 I have.
0:38:48 > 0:38:52At 85... 6. At 86,000. 7.
0:38:52 > 0:38:55At 87,000. At 87... 88,000.
0:38:55 > 0:38:5889,000. At 89,000 bid.
0:38:58 > 0:39:00At 89... 90,000 bid again.
0:39:00 > 0:39:0491 in blue. 91,000. At 91. Bid of 91.
0:39:04 > 0:39:08At 92. Bid of 92. At 92. 93,000.
0:39:08 > 0:39:10At 93,000. Bid of 93.
0:39:10 > 0:39:1394,000. At 94,000.
0:39:13 > 0:39:15Lady's bid. Quickly now, sir?
0:39:15 > 0:39:18At 94,000. Bid of 94. At 94. 94.
0:39:18 > 0:39:2194-5. 94-5. Bid of 94-5.
0:39:21 > 0:39:25Selling... 95,000. Selling all the time at 95,000.
0:39:25 > 0:39:28You've worked hard. You shouldn't miss it for 500.
0:39:28 > 0:39:32At 95,000. Quickly now, sir, if you want it?
0:39:32 > 0:39:34At 95,000, lady's bid.
0:39:34 > 0:39:37Are you all sure? Once...
0:39:38 > 0:39:39Twice...
0:39:39 > 0:39:43Give me the time thrice... What's your number, madam?
0:39:43 > 0:39:49'That final bid was made by Caroline, an accountant who owns a property investment company
0:39:49 > 0:39:52'with her father and two brothers.
0:39:52 > 0:39:54'Her brother Grant is a joiner.
0:39:54 > 0:39:57'I met up with them to hear about their plans.'
0:39:57 > 0:40:03- Grant, Caroline, congratulations. - Thank you.- Cheers.- Good price, I think, for somewhere like this?
0:40:03 > 0:40:06We were pleased with it, quite happy.
0:40:06 > 0:40:08Tell me why you wanted to buy it.
0:40:08 > 0:40:15We're looking to have offices of our own that we can develop and move into ourselves and this seemed perfect.
0:40:15 > 0:40:20- What was it about this place that you liked?- The location. It's handy for everything.
0:40:20 > 0:40:25It's close to the train station, the underground, restaurants.
0:40:25 > 0:40:29- And quite prestigious, I would say. - Lovely building. Grade B listed.
0:40:29 > 0:40:34We can do the inside pretty much to suit us as we like, so it has everything.
0:40:34 > 0:40:38'It certainly has. They've bought a property in a great location,
0:40:38 > 0:40:45'but they need to be careful they don't rent their current offices and pay the mortgage here for too long.'
0:40:45 > 0:40:51- Presumably, there's a period where you've got to... You'll be paying both, won't you?- Yes.
0:40:51 > 0:40:54We have a six-month notice period where we are just now,
0:40:54 > 0:40:59so the morning after the auction, I handed in our notice on the rented one,
0:40:59 > 0:41:02so I hope we're not doubling up for too long.
0:41:02 > 0:41:06It is in a bit of a state, so what are you planning to do with it?
0:41:06 > 0:41:09- That would be your department.- Yeah.
0:41:09 > 0:41:12A full office fit-out, budget depending,
0:41:12 > 0:41:15so a raised floor, lowered ceilings for data access cabling.
0:41:15 > 0:41:21- Everything's getting ripped back to the bare walls to start from scratch.- Have you got experience?
0:41:21 > 0:41:27Yeah, I've done a fair bit of office fit-outs and old tenement restructurings as well,
0:41:27 > 0:41:32- so I've got a fair bit of knowledge of this kind of thing. This is easy.- Is it?- Yeah.
0:41:32 > 0:41:38- We'll see if he says that three months down the line.- It won't be easy when she gets the bill.
0:41:38 > 0:41:43- What's it like working for your sister?- She's pretty good. - He's not a bad lad.
0:41:43 > 0:41:47'I'm sure he's not, but I hope he's a handy lad.
0:41:47 > 0:41:51'He's got his work cut out here to transform this place,
0:41:51 > 0:41:55'so have they decided on the look they're trying to create here?'
0:41:55 > 0:41:59This room we're in just now would be where the office staff would sit.
0:41:59 > 0:42:03This would be the sort of reception area and main staff desks.
0:42:03 > 0:42:09Then we'd use some of the other rooms as a meeting room, boardroom, put in a little kitchenette,
0:42:09 > 0:42:14so the staff can make their lunches, then another office suite.
0:42:14 > 0:42:19- How well does the space suit your business?- It's ideally-sized for us.
0:42:19 > 0:42:25We don't have to do any structural work for the way we want to arrange our office space, so it's perfect.
0:42:25 > 0:42:29What kind of budget have you got set aside for doing the work?
0:42:29 > 0:42:33- You're smirking!- Yeah.- Do you want to have a private conversation?
0:42:33 > 0:42:39We've not got enough. Caroline's talking about 30-odd. I'd like a wee bit more.
0:42:39 > 0:42:45- There'll maybe be a bit of coming and going with that. 30-odd?- 30,000 to 35,000.- Plus office furniture.
0:42:45 > 0:42:48- 35 then? - I've gained another five grand!
0:42:48 > 0:42:52Things like windows are going to be expensive.
0:42:52 > 0:42:54Windows, if we want double glazing.
0:42:54 > 0:42:59As it's a listed building, we'll be restricted as to what we can put in the windows,
0:42:59 > 0:43:03so we won't be able to put in cheap PVC windows or anything like that.
0:43:03 > 0:43:07It'll be a specialist company that I know probably fitting them.
0:43:07 > 0:43:13- What about timescales for doing the work?- The majority of the work should be done within eight weeks.
0:43:13 > 0:43:20After that, we'll start moving furniture in, snagging out and tackle any problems as we hit them.
0:43:20 > 0:43:25- Congratulations. We look forward to seeing how you get on. - Thanks very much.- Thank you.
0:43:27 > 0:43:30Well, they got it at a good price,
0:43:30 > 0:43:35but time is now money for Caroline and Grant and they'll get on with sorting this place out
0:43:35 > 0:43:39because nobody wants to pay a mortgage and rent at the same time.
0:43:39 > 0:43:44Find out how they get on with this little project later in the show.
0:43:46 > 0:43:53Once you've bought your property, the hard work starts and you've got to be prepared for a few surprises.
0:43:53 > 0:43:58So, did our buyers unearth hidden treasures or encounter pitfalls? Let's find out.
0:44:06 > 0:44:10Time now to return to Tonge, a small village in Kent
0:44:10 > 0:44:17where earlier in the programme, investment manager Phil paid 94,000 for this three-bedroom property.
0:44:17 > 0:44:20He intended to renovate and then rent it out.
0:44:20 > 0:44:26It was the third property in a growing portfolio he was acquiring for his wife.
0:44:26 > 0:44:30Now, just over three months later, the snow has been shovelled away
0:44:30 > 0:44:35and we caught up with Phil to see how the work's progressed.
0:44:35 > 0:44:40Once you get inside, the larger living room hasn't changed much at all.
0:44:40 > 0:44:45That back-burning fire remains as the only source of heat in the house.
0:44:45 > 0:44:51In the second reception room, the walls are stripped and the cladding round the chimney breast has gone.
0:44:51 > 0:44:56While Phil's been working abroad, his builder has been getting the house ready for decorating
0:44:56 > 0:44:59and work on the kitchen is almost complete.
0:44:59 > 0:45:06The kitchen is probably the job that we've done the most on and, as you can see, it's finished now.
0:45:06 > 0:45:09This doorway here never used to be here,
0:45:09 > 0:45:13so we've had to give the kitchen its identity back.
0:45:13 > 0:45:18The door was here, which went through to the living room, which is a strange concept.
0:45:18 > 0:45:22But we've had to change that, so this is perhaps the one finished room
0:45:22 > 0:45:26and perhaps if you can envisage this as the completed house...
0:45:26 > 0:45:30Work has also started on the extension at the back.
0:45:30 > 0:45:35Again it looks a lot worse than it is as it's ready for the last bit of filler
0:45:35 > 0:45:39before the paintbrush works its magic.
0:45:39 > 0:45:43It promises to be a lovely room with great views out into the garden.
0:45:43 > 0:45:45Upstairs is a similar story.
0:45:45 > 0:45:51The biggest job that we've done upstairs, apart from changing these banisters which were solid,
0:45:51 > 0:45:53just to fit in with the old banister,
0:45:53 > 0:45:56was we had to take down the ceilings.
0:45:56 > 0:46:03This is because the old ceilings used to be made of cardboard which is a real fire hazard.
0:46:03 > 0:46:08Phil paid 94,000 for the house on auction day and now three bedrooms look a lot larger
0:46:08 > 0:46:12since the walls no longer support those vibrant shades.
0:46:12 > 0:46:16Meanwhile, with the new colour scheme yet to appear,
0:46:16 > 0:46:19has Phil managed to keep to that very ambitious budget?
0:46:21 > 0:46:27I think I was rather joking last time when I suggested that it would be about £4,000,
0:46:27 > 0:46:31which is a lot less than it's turned out to be,
0:46:31 > 0:46:35but it's only about £10,000 over that, so about £14,000 in total.
0:46:35 > 0:46:39The carpet is the last thing that will be of any great expenditure.
0:46:39 > 0:46:45Maybe on the inside, but outside, Phil has set his sights on the land in front of the house
0:46:45 > 0:46:47which could be an added expense.
0:46:47 > 0:46:52It's a tiny strip of land. The next-door neighbour uses it as a parking lot.
0:46:52 > 0:46:58The parish council are the current owners of that piece of land, so I've put in a bid.
0:46:58 > 0:47:03They have to go through the parish meetings and they'll come back to me.
0:47:03 > 0:47:07This property is the third in the portfolio for Phil's wife.
0:47:07 > 0:47:12The plan was to generate income by renting the house out, so is that still the case?
0:47:13 > 0:47:18The original intention was to rent it and that is the case.
0:47:18 > 0:47:25I've even had... Next door has indicated that he may wish to rent it for a member of his family.
0:47:25 > 0:47:31I wanted to get the property done first, but if he is still interested, that's something I would do.
0:47:31 > 0:47:35Maybe that's so that the neighbour can continue parking on that land
0:47:35 > 0:47:38if Phil does buy it from the parish council.
0:47:40 > 0:47:45Time to see what two local estate agents think of the potential here,
0:47:45 > 0:47:49now the structural work is done and the decorating is about to begin.
0:47:49 > 0:47:52It looks like not a great deal has been done,
0:47:52 > 0:47:56but with the ceilings refurbished and a lot of remedial work,
0:47:56 > 0:48:00if it's the same standard as the kitchen, it'll be fine.
0:48:00 > 0:48:04It's been done on a budget, but all the preparatory work's been done,
0:48:04 > 0:48:08so that when it's painted through, it should look fine.
0:48:08 > 0:48:14It's a great family home with a big garden, so buyers that like to enjoy their garden, it's an ideal buy.
0:48:14 > 0:48:18The position is nice. It's got lovely views over farmland.
0:48:18 > 0:48:23Its only drawback is the parking arrangements at the front. If that could be resolved,
0:48:23 > 0:48:27it would improve the value of the property significantly.
0:48:27 > 0:48:33Once the renovation and decorations are completed, how much could it potentially be worth?
0:48:33 > 0:48:37Remember, Phil paid 94,000 on auction day
0:48:37 > 0:48:40and his budget has stretched to £14,000,
0:48:40 > 0:48:43making 108,000 in total.
0:48:43 > 0:48:49Fully completed, I would put this property on the market between £150,000 to £155,000.
0:48:49 > 0:48:55When completed and decorated throughout, I would expect to sell this property for £150,000.
0:48:55 > 0:48:58If the parking problem was resolved,
0:48:58 > 0:49:04I think there is the potential that the value of this property could be up as high as £185,000 to £190,000.
0:49:04 > 0:49:11Based on that £150,000 valuation, Phil's looking at a gross profit of 42,000
0:49:11 > 0:49:13before the usual deductions.
0:49:13 > 0:49:19That could vary, depending on what the council ask for the land, if they do agree to sell it.
0:49:19 > 0:49:26Certainly with the upper valuation based on the acquisition of that land,
0:49:26 > 0:49:32maybe I'll push it a little bit harder with the parish council now and see if I can acquire that,
0:49:32 > 0:49:36but they may want a bit more from me to be able to give up those rights.
0:49:36 > 0:49:42How much could it generate per calendar month if rented out to tenants?
0:49:42 > 0:49:47I would rent this property out for £725 to £750 per calendar month.
0:49:47 > 0:49:50I would rent this property for £650 per month.
0:49:50 > 0:49:58That's interesting. It's certainly very good in terms of money for the amount that I paid for the property.
0:49:58 > 0:50:05In terms of yield on the current valuations, maybe that raises the spectre of a potential sale.
0:50:05 > 0:50:10Whatever that decision is, will Phil be tempted to return to an auction
0:50:10 > 0:50:13to look for more property in the future?
0:50:13 > 0:50:17I like the vibe. You can get some good bargains
0:50:17 > 0:50:22and I want to build a portfolio of properties, so I would go back to the auctions.
0:50:24 > 0:50:28Time to return to Glasgow where earlier in the programme,
0:50:28 > 0:50:32Grant and his sister Caroline had paid 95,000
0:50:32 > 0:50:39for the first-floor commercial office space in this impressive Category B listed building.
0:50:39 > 0:50:45They were going to re-locate their family's property investment company here after the refurbishment,
0:50:45 > 0:50:52but the clock was ticking as they'd given six months' notice on their current offices,
0:50:52 > 0:50:58so the refit had to hit the deadline and it was joiner Grant who would do the donkey work.
0:50:59 > 0:51:03Well, it's now seven months later and we're back to check on progress.
0:51:03 > 0:51:10Originally, the layout had been divided into several small offices plus this enquiries counter,
0:51:10 > 0:51:16but the floor space now has been divided to create an environment more suitable for their business.
0:51:16 > 0:51:22The big question is - did Grant manage to hit the deadline and get the place ready on time?
0:51:25 > 0:51:30# I said baby, baby, baby You're out of time... #
0:51:30 > 0:51:37We made it by the skin of our teeth. The walls were maybe just drying off by the time the office moved in!
0:51:37 > 0:51:42Great news. The team of six have actually been in here for about a month.
0:51:42 > 0:51:48The various partition walls were removed, leaving just the load-bearing walls.
0:51:48 > 0:51:52Then new suspended ceilings and walls and a raised floor were added,
0:51:52 > 0:51:57so that the computer and telephone cabling of a modern office could be installed,
0:51:57 > 0:52:00along with the perks that every worker appreciates.
0:52:00 > 0:52:04We put in a small kitchen. We're quite a small office
0:52:04 > 0:52:09and they like to have their tea and coffee and use the microwave at lunchtime,
0:52:09 > 0:52:13so it was important they had a proper tea and coffee preparation area.
0:52:13 > 0:52:20The kitchen is really well-equipped and looks as if it's in an upscale apartment, rather than an office.
0:52:20 > 0:52:24The washrooms and loos have also been refitted to a high standard
0:52:24 > 0:52:27and an energy-efficient boiler was installed.
0:52:27 > 0:52:33As the building is Category B listed, it's not been possible simply to add sealed double glazing.
0:52:33 > 0:52:37That's a real problem for anyone with a listed property.
0:52:37 > 0:52:43We had issues with the windows. It's a B-listed building, so there's very little we could do with them.
0:52:43 > 0:52:49But we found that when the old hardboard panelling came away, the original mouldings were all here,
0:52:49 > 0:52:53so we've brought it back to what it would have looked like.
0:52:53 > 0:52:58We've also replaced all the panels with a very low profile double-glazed unit
0:52:58 > 0:53:02and with that, we've definitely made the office an awful lot warmer,
0:53:02 > 0:53:06but we've also helped an awful lot with the sound.
0:53:06 > 0:53:11There was very loud traffic noise here beforehand and now we've got away with that...
0:53:11 > 0:53:16It's pretty noisy, but with the panels in place, it's really cut down the noise
0:53:16 > 0:53:21and the office staff can now hear what they're doing and work better.
0:53:21 > 0:53:27The staff of six certainly have a great office to work in with its smart kitchen and washrooms.
0:53:27 > 0:53:32But for any business, the big decisions have to be made in the boardroom
0:53:32 > 0:53:35and the strategy there was to impress.
0:53:35 > 0:53:42In the boardroom, we decided to make a feature of the ceiling. We raised it up and put in feature lighting.
0:53:42 > 0:53:46We then put in a new table in oak to match the woodwork in the room
0:53:46 > 0:53:53and framed that with an inset in the carpet in a contrasting colour, which sets it all off very nicely.
0:53:53 > 0:53:57It's definitely been a high quality refurbishment here.
0:53:57 > 0:54:01# Tumble out of bed and I stumble to the kitchen... #
0:54:01 > 0:54:06How much has it cost on top of the 95,000 they paid at auction?
0:54:06 > 0:54:10I think we originally had hoped for something around 36,000.
0:54:10 > 0:54:14By design, we increased that for the heating and the boardroom
0:54:14 > 0:54:18and some other bits and pieces up to 40,000.
0:54:18 > 0:54:21I think we came in at the end about 43,000.
0:54:22 > 0:54:26Time now to hear how two property experts,
0:54:26 > 0:54:29familiar with commercial properties,
0:54:29 > 0:54:31rate this refurbished office.
0:54:31 > 0:54:33I'm very impressed.
0:54:33 > 0:54:37I think they have completely transformed the office suite
0:54:37 > 0:54:39into a very good quality,
0:54:39 > 0:54:45modern office which is unrecognisable from the condition and standard here before.
0:54:45 > 0:54:47It's very rare to have a property
0:54:47 > 0:54:51that has their own bathroom and kitchen and this one does.
0:54:51 > 0:54:55That might be the difference between somebody taking this property
0:54:55 > 0:54:57and somewhere else.
0:54:57 > 0:55:01The cosmetic work done here is of a very high standard.
0:55:01 > 0:55:04The windows, especially, have been upgraded well.
0:55:04 > 0:55:08You've got a new heating system. You've also got complete rewiring.
0:55:08 > 0:55:12The quality of workmanship is very, very good.
0:55:12 > 0:55:15I think the standard of specification is first-class
0:55:15 > 0:55:19and the suite now meets modern user requirements, no question of that.
0:55:19 > 0:55:26But the question has to be the current market value of the office after its impressive refurbishment.
0:55:26 > 0:55:32It's not been cheap. They've spent £43,000 on top of the 95,000 they paid at auction,
0:55:32 > 0:55:37so is it now worth more than their total outlay of 138,000?
0:55:37 > 0:55:41The facility has been significantly improved
0:55:41 > 0:55:47and I would think now that we are looking at a market value of between £140,000 and £150,000.
0:55:47 > 0:55:52The resale value of the property I would put at around £150,000.
0:55:52 > 0:56:00150,000 would represent a gross profit of £12,000 before any of the usual deductions.
0:56:02 > 0:56:06I would have expected it to be slightly higher than that,
0:56:06 > 0:56:12but we've done this for our own office and for ourselves, so I'm still happy with the result.
0:56:12 > 0:56:18So, impressive new offices for tenants to visit for meetings and everyone seems happy.
0:56:18 > 0:56:21The staff really enjoy this office.
0:56:21 > 0:56:26It's a great environment to work in and the location is ideal in Glasgow city centre.
0:56:26 > 0:56:33And they've got Grant to thank for getting the place up and running bang on time. So, what now?
0:56:33 > 0:56:38I'm going on a nice, big, long holiday. I've been here for too long now and I need a break.
0:56:38 > 0:56:42Wish granted, I'd say, and well deserved.
0:56:48 > 0:56:51We hope you've enjoyed Homes Under The Hammer.
0:56:51 > 0:56:57- Join us next time for more exciting tales from the auction rooms. - See you then.- Goodbye.- Goodbye.
0:57:14 > 0:57:18Subtitles by Subtext for Red Bee Media Ltd 2010
0:57:18 > 0:57:21Email subtitling@bbc.co.uk