0:00:00 > 0:00:02Hello! In today's current climate,
0:00:02 > 0:00:06it may be difficult to find your little piece of house heaven.
0:00:06 > 0:00:08But whether it's large or small,
0:00:08 > 0:00:10auctions can often be a very good place to start.
0:00:10 > 0:00:13So today we follow our brave buyers
0:00:13 > 0:00:16who try their luck buying their homes under the hammer!
0:00:41 > 0:00:45If you've decided to gamble and place a bet on property developing,
0:00:45 > 0:00:47you may want to buy at auction.
0:00:47 > 0:00:51The atmosphere is electric, the action fast and furious.
0:00:51 > 0:00:54Let's look at the properties up for auction on today's show.
0:00:55 > 0:01:00In Cardiff, I show why you should not be fooled by innocent-looking twigs.
0:01:01 > 0:01:04That is a nightmare!
0:01:04 > 0:01:08I find myself going up-market in West London.
0:01:09 > 0:01:12It's not often on this programme I find myself on a street
0:01:12 > 0:01:14quite as grand as this.
0:01:15 > 0:01:20And I think a complete re-design is called for in this Derby house.
0:01:20 > 0:01:25A lot of space, but I don't think it's being utilised well at all.
0:01:26 > 0:01:29All these properties were sold at auction.
0:01:29 > 0:01:34We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:36 > 0:01:41The first property today is just outside the vibrant city of Cardiff
0:01:41 > 0:01:43in the quieter outskirts.
0:01:43 > 0:01:47Judging by the surrounding houses, I've got a good feeling about this one.
0:01:50 > 0:01:55This is a highly desirable leafy residential suburb.
0:01:55 > 0:01:57The property I'm here to see sounds great.
0:01:57 > 0:02:03It's a former caretaker's cottage for a private school, with a guide price of 95,000 quid. That's it.
0:02:03 > 0:02:06Built around 1870. Looks OK.
0:02:06 > 0:02:10However, one big problem I've spotted already. That tree.
0:02:10 > 0:02:14Leafy suburb is great, but not when there's an oak tree like that in your garden.
0:02:14 > 0:02:17It's within two to three feet of the house.
0:02:17 > 0:02:21It'll be playing havoc with the foundations and the drains.
0:02:21 > 0:02:24Not a good start. Let's take a look inside.
0:02:28 > 0:02:33So I'd hope the first thing to go would be that tree.
0:02:33 > 0:02:38It's worth checking with the local authority that there aren't any tree preservation orders on it
0:02:38 > 0:02:41before you rev up the chainsaw.
0:02:41 > 0:02:46That also goes for another tree at the side, which ideally should be removed.
0:02:46 > 0:02:50Apart from that, this traditionally-built stone house looks promising,
0:02:50 > 0:02:51from outside at least.
0:02:51 > 0:02:57In a house of this age, you'd hope for some nice character features, but so far it's not looking good.
0:02:57 > 0:03:02A big front reception room there, though, which is nice to see.
0:03:02 > 0:03:04And some interesting tiles on the floor here.
0:03:04 > 0:03:07But I think they may be beyond repair.
0:03:07 > 0:03:11But this corridor itself disappears off down there,
0:03:11 > 0:03:15basically into an under-stairs cupboard. Strange! Stairs.
0:03:15 > 0:03:17Then into a rear reception room.
0:03:17 > 0:03:21Again, not a bad space. I'd like to see higher ceilings.
0:03:21 > 0:03:26But I'm seeing something potentially much more important you can do with this room.
0:03:28 > 0:03:32And that is take out this wall between the reception room and the kitchen.
0:03:32 > 0:03:38The kitchen itself is absolutely tiny. It's built into this extension at the rear of the house.
0:03:38 > 0:03:42As you see, it's dreadful for the size of the property.
0:03:42 > 0:03:45And it gets worse. Just by the side of the kitchen
0:03:45 > 0:03:48is the only loo and bathroom in the house.
0:03:48 > 0:03:51What on earth were they thinking when they did this?
0:03:51 > 0:03:54# Move it, move it, I like to move it, move it
0:03:54 > 0:03:56# I like to move it! #
0:03:56 > 0:04:00But where could it be moved to? I need to look upstairs.
0:04:00 > 0:04:03Upstairs is quite an interesting layout.
0:04:03 > 0:04:06It starts well with this big landing which is nice.
0:04:06 > 0:04:07It gives a feeling of space.
0:04:07 > 0:04:10And three reasonable sized bedrooms.
0:04:10 > 0:04:14I'm concerned about the ceiling in this one. Looks like water damage.
0:04:14 > 0:04:17But I'm more concerned about that bathroom and toilet downstairs.
0:04:17 > 0:04:21Ideally, you want them up here. But I can't really see
0:04:21 > 0:04:25where you'd put it without a bit of careful messing around with these walls.
0:04:25 > 0:04:28Hmm. It's not obvious.
0:04:28 > 0:04:31# With no particular place to go #
0:04:31 > 0:04:34Maybe a loft extension could be the answer.
0:04:34 > 0:04:38You could put a bedroom up there, freeing up the small bedroom
0:04:38 > 0:04:40perhaps to become a bathroom.
0:04:40 > 0:04:45Alternatively, you might sneak a shower room into the recesses around the chimney breast.
0:04:45 > 0:04:47Or perhaps better still...
0:04:47 > 0:04:52I can see one way of resolving that bathroom issue, and that's out the back here.
0:04:52 > 0:04:56You can see it would be possible to build a really good extension
0:04:56 > 0:04:59to solve the problems and increase the size of the house.
0:04:59 > 0:05:03Problem solved. There's another one that's just sprung up.
0:05:03 > 0:05:06Look at that. What does it look like to you?
0:05:06 > 0:05:07Just a bit of garden weed?
0:05:07 > 0:05:10That is a nightmare!
0:05:11 > 0:05:13It's called Japanese knotweed.
0:05:13 > 0:05:20Introduced into this country cos it looked quite pretty, now it is a certifiable plant.
0:05:20 > 0:05:24If you get it, you have to tell the council. It's a nightmare for buildings.
0:05:24 > 0:05:28It digs its way through concrete, it grows at a phenomenal rate,
0:05:28 > 0:05:31a tennis court's-worth in a year.
0:05:31 > 0:05:35This one has been killed, but if its roots haven't been destroyed,
0:05:35 > 0:05:37you get the picture? This is horrendous.
0:05:37 > 0:05:41It's here and it's very expensive to get rid of.
0:05:48 > 0:05:51Concrete-munching weeds aside,
0:05:51 > 0:05:53I think this house has got a lot going for it.
0:05:53 > 0:05:57It's in a great location with plenty of character.
0:05:57 > 0:06:00With thought, it could be turned into something special.
0:06:00 > 0:06:04To some buyers, the problems here might seem off-putting.
0:06:04 > 0:06:05But how worried should they be?
0:06:05 > 0:06:08What does a local estate agent think?
0:06:08 > 0:06:10I like the look of the house, stone-fronted.
0:06:10 > 0:06:13And I like the shape of the house.
0:06:13 > 0:06:15But we have had an instance recently
0:06:15 > 0:06:19where a mortgage has been declined because of Japanese knotweed.
0:06:19 > 0:06:23In the instance of the bathroom, that needs to go upstairs.
0:06:23 > 0:06:25We'd probably lose a bedroom at the front
0:06:25 > 0:06:29but if we could extend across the back of the kitchen here,
0:06:29 > 0:06:32then we could get the three bedrooms back quite easily.
0:06:32 > 0:06:36To get that layout would take a lot of effort, time and money.
0:06:36 > 0:06:41Would it be worth it for a house guided at £95,000 at the auction?
0:06:41 > 0:06:46I would probably expect to get about 220 to £230,000 for the property.
0:06:46 > 0:06:51If it were extended and we put the bathroom upstairs
0:06:51 > 0:06:54and came out with a third bedroom over the kitchen,
0:06:54 > 0:06:57then I think we're looking at £250,000.
0:06:57 > 0:07:01If the potential resale value is encouraging,
0:07:01 > 0:07:03how about rental?
0:07:03 > 0:07:10If it was done to a really nice standard, you'd get about £900 per calendar month as a rental income.
0:07:10 > 0:07:13This house may not be without its problems,
0:07:13 > 0:07:17but with a bit of effort it might also bring decent rewards.
0:07:18 > 0:07:21So, a house with loads of character
0:07:21 > 0:07:24that would benefit from internal modifications,
0:07:24 > 0:07:27not least the kitchen, and moving the bathroom upstairs.
0:07:27 > 0:07:31The biggest issues are outside - the oak tree and the naughty knotweed!
0:07:31 > 0:07:36Let's find out who bought Rose Cottage despite that when it went to auction.
0:07:36 > 0:07:40Lot number 28 in your catalogue. Put that in.
0:07:40 > 0:07:41Who's going to start me off?
0:07:41 > 0:07:44Can I see 150,000, anybody, to start me?
0:07:44 > 0:07:46140, then, to start.
0:07:46 > 0:07:49I'm in your hands. Bid me.
0:07:49 > 0:07:52100, all right, but it's not enough. It's worth more.
0:07:52 > 0:07:55100 I've taken there. Five.
0:07:55 > 0:07:57Thank you. 105. And ten, if you like.
0:07:57 > 0:08:01Ten. Thank you. 15, there. 115. Your bid, sir.
0:08:01 > 0:08:0620 on my left. At 120. And five seated in the back.
0:08:06 > 0:08:08130. At 130. Five in the back.
0:08:08 > 0:08:12135. 40 if you like. The bid is seated at the back.
0:08:12 > 0:08:16140, is it. 40, thank you. 140.
0:08:16 > 0:08:18You're out, sir. Five. 145.
0:08:18 > 0:08:20150, thank you.
0:08:20 > 0:08:24At 150. I'll take them two at a time now, if you like.
0:08:24 > 0:08:26152 I'm bid, seated there.
0:08:26 > 0:08:29At 152. And four, can I?
0:08:29 > 0:08:31At 152 seated in the back.
0:08:31 > 0:08:36154 is bid. And six is bid. At 156. You're out there, sir.
0:08:36 > 0:08:39Eight, thank you. At 158. 60.
0:08:39 > 0:08:41160 is bid.
0:08:41 > 0:08:46Two. 162. Four, thank you. 164. You're still out.
0:08:46 > 0:08:48Six. 166.
0:08:48 > 0:08:50168, if you like, sir.
0:08:50 > 0:08:51Thank you, sir. 168.
0:08:51 > 0:08:53170 if you like now.
0:08:53 > 0:08:56170, can I, please? He says no.
0:08:56 > 0:08:58There is my bid at 168.
0:08:58 > 0:09:01170 - you heard it shouted out.
0:09:01 > 0:09:02At 170.
0:09:02 > 0:09:06He's going to get it with one bid. Two? 172.
0:09:06 > 0:09:11- At 172.- 174.- Thank you. 174 on the phone.
0:09:11 > 0:09:14It's hard to find one of these. Six. Thank you. 176.
0:09:14 > 0:09:19At 176. Tell him to come in again quickly on the phone, please.
0:09:19 > 0:09:21- This has a lot of potential. - 178.- 178.
0:09:21 > 0:09:25At 178. Am I missing... 80, thank you, in the back of the room.
0:09:25 > 0:09:29- And two more if he likes. Quickly. - 182.
0:09:29 > 0:09:31182, thank you. 182.
0:09:31 > 0:09:33Four, can I? Thank you, sir.
0:09:33 > 0:09:35Four I'm bid. At 184.
0:09:35 > 0:09:38Shout if I'm missing anybody. The hammer's up.
0:09:38 > 0:09:40I'm going to sell it at 184.
0:09:40 > 0:09:42He says no on the phone.
0:09:42 > 0:09:46Have you all done? At £184,000.
0:09:46 > 0:09:49It's yours, sir. Thank you very much. Buyer 291.
0:09:49 > 0:09:51184,000.
0:09:51 > 0:09:52Wow!
0:09:52 > 0:09:55So, for practically double the guide price,
0:09:55 > 0:09:58at £184,000,
0:09:58 > 0:10:03the new owner of the stone-built Cardiff property is local man, Richard.
0:10:06 > 0:10:10- Richard, congratulations.- Thank you. - A very good solid house.
0:10:10 > 0:10:13- Let's hope so!- Why did you want to buy it?
0:10:13 > 0:10:17I'd been looking for a couple of months on the internet
0:10:17 > 0:10:18of various auction sites.
0:10:18 > 0:10:25I'd been to see this one outside three times. I hadn't seen it before internally before I bought it.
0:10:25 > 0:10:29You visited three times, why didn't you visit once to look inside?
0:10:29 > 0:10:31I couldn't quite make any of the appointments.
0:10:31 > 0:10:35The other thing to mention is the day I went to the auction.
0:10:35 > 0:10:38I was in two minds whether to go to Nottingham to a car auction!
0:10:39 > 0:10:45I decided I couldn't be bothered to drive to Nottingham so I went to the house auction in Cardiff!
0:10:45 > 0:10:48- So you bought a house instead of a car!- Yes!
0:10:48 > 0:10:51How do you feel about the purchase having gone down that route?
0:10:51 > 0:10:55I think I've done really well. I can see myself living here.
0:10:55 > 0:10:58I'm very excited about doing the work and moving in.
0:10:58 > 0:11:02Richard plans to sell his current house and make this his home.
0:11:02 > 0:11:05Even if he has to keep his old car!
0:11:05 > 0:11:10The move to a new home is just one of a number of changes in his life.
0:11:10 > 0:11:14I just decided that having worked for the last 25 years
0:11:14 > 0:11:19that it was time to take a six-month career break to decide what I wanted to do with my life.
0:11:19 > 0:11:22- How's it gone so far?- Very well. I've set up my own consultancy
0:11:22 > 0:11:27that's dealing with how businesses can react to incidents that occur
0:11:27 > 0:11:31- and unforeseen disasters or emergencies.- Crisis management.
0:11:31 > 0:11:34Right. OK. Any other big life changes?
0:11:34 > 0:11:38- In the last two to three months, I've lost two stone in weight.- Wow!
0:11:38 > 0:11:44It's been a huge phenomena for me. I can now do 20 miles on my pushbike
0:11:44 > 0:11:46without being out of breath.
0:11:46 > 0:11:50- I feel much better for it.- So big life changes there.- Yeah, huge.
0:11:51 > 0:11:54# I know it's never too late
0:11:56 > 0:11:59# To make a brand-new start. #
0:11:59 > 0:12:02What brand-new start does he plan for the house?
0:12:05 > 0:12:11Well, this kitchen we're in now is going to be demolished completely.
0:12:11 > 0:12:12A double extension going up.
0:12:12 > 0:12:17We're bringing the roof line out so it's level with the back of the house.
0:12:17 > 0:12:20The gabled end is going to be in glass.
0:12:20 > 0:12:25And we're going to have a mezzanine floor going from the first floor into that gabled area.
0:12:25 > 0:12:32- Wow! What's the view that you'll see from there?- Behind the house is a lovely local authority-owned park.
0:12:32 > 0:12:34I'll look directly into the park.
0:12:34 > 0:12:41It's going to be a room with a wow factor. And it'll return back into the original attic space.
0:12:41 > 0:12:44So it'll be this huge space.
0:12:44 > 0:12:47- Have you got planning permission for that already?- Not yet!
0:12:47 > 0:12:49So that could be a problem, then!
0:12:49 > 0:12:53But if he does get permission - and boy, does it sound impressive -
0:12:53 > 0:12:59it will enable the bathroom to be moved upstairs, yet he'd still have three to four bedrooms.
0:12:59 > 0:13:04But before any building can start, he'll need to sort those concrete-eating weeds out.
0:13:04 > 0:13:09There is one slight fly in the ointment. Well, actually, a weed in the garden.
0:13:09 > 0:13:12What about the Japanese knotweed?
0:13:12 > 0:13:14Well, there is the Japanese knotweed.
0:13:14 > 0:13:18However, it's been treated by the local authority before I bought the house.
0:13:18 > 0:13:23I'm fortunate that my neighbour was the head gardener for the local authority.
0:13:23 > 0:13:27- Right.- I've spoken to a friend of mine who works at Kew Gardens
0:13:27 > 0:13:30and she's getting an expert on knotweed to look into it.
0:13:30 > 0:13:33But where it is, I think it's the ideal spot for a hot tub!
0:13:33 > 0:13:36Put something on the top of it!
0:13:36 > 0:13:38- Keep it down. - Lovely foliage all around it!
0:13:38 > 0:13:44I guess he might be able to train it up to make a suitable screen if all else fails!
0:13:44 > 0:13:49In reality, it's less likely to hamper his plans than the local planners.
0:13:49 > 0:13:53But if all this comes to fruition, it will be at a high price.
0:13:53 > 0:13:56- How much have you put aside to do the work?- 60,000.
0:13:56 > 0:13:59Hopefully, I'll come in under it, but that's what I've got to spend.
0:13:59 > 0:14:01That's the maximum amount.
0:14:01 > 0:14:05What kind of experience do you have in projects like this?
0:14:05 > 0:14:09House projects? I've refurbished my own house completely.
0:14:09 > 0:14:14- But it took me four years to put a cooker hood up!- Four years to put up a cooker hood?
0:14:14 > 0:14:17- Yes.- Richard, how come that took you four years?
0:14:17 > 0:14:20That was before the life change!
0:14:20 > 0:14:23At least he's just project managing the work here.
0:14:23 > 0:14:28Because if he was doing it, his dream house might just remain that!
0:14:36 > 0:14:40So, a change of life and a change of house for Richard.
0:14:40 > 0:14:43What about those plans? Absolutely spectacular.
0:14:43 > 0:14:47But of course he has to get the plans through the planners
0:14:47 > 0:14:48and that's not guaranteed.
0:14:48 > 0:14:51And his budget of 60,000 quid could soon disappear.
0:14:51 > 0:14:55You can find out how he gets on later in the show.
0:14:59 > 0:15:02Location is usually the key to the value of a property,
0:15:02 > 0:15:05and nowhere is that more true than in London.
0:15:05 > 0:15:10You can't get a much more prestigious location to live in London than Kensington.
0:15:10 > 0:15:14OK, so West Kensington is something of the poorer relative,
0:15:14 > 0:15:17but it's hardly on the bread line.
0:15:17 > 0:15:19It's stacked full of beautiful properties,
0:15:19 > 0:15:23its fair share of gastro-pub delights and it's well connected.
0:15:23 > 0:15:26All looking rather attractive, if you ask me!
0:15:26 > 0:15:29This area straddles the border between the boroughs of Kensington,
0:15:29 > 0:15:32Hammersmith and Fulham.
0:15:32 > 0:15:33As far as claims to fame go,
0:15:33 > 0:15:37Freddie Mercury once lived here in W14.
0:15:38 > 0:15:40You know, it's not often on this programme
0:15:40 > 0:15:43I find myself on a street quite as grand as this.
0:15:43 > 0:15:47Look at these Victorian terraces with their Grecian columns
0:15:47 > 0:15:49and sheer over-the-top size.
0:15:49 > 0:15:52They really are quite staggering.
0:15:52 > 0:15:56I'm delighted to tell you the property I'm here to see is right here.
0:15:56 > 0:16:02It's a one-bedroom first floor flat with a guide of just £245,000.
0:16:03 > 0:16:06When I say "just", I know that's a lot of money,
0:16:06 > 0:16:08but we are in a prime London location.
0:16:08 > 0:16:14When I tell you a one-bedroom flat round here regularly achieves well over 300 grand,
0:16:14 > 0:16:17it doesn't sound quite so shocking.
0:16:19 > 0:16:22Do you know, it's quite cramped in here
0:16:22 > 0:16:25but it's as you'd expect from a West London flat.
0:16:25 > 0:16:26We're in the centre of London.
0:16:26 > 0:16:31You've got a kitchen to the right, with double doors leading to a balcony, which is fab.
0:16:31 > 0:16:34You've got, I think, a bedroom there.
0:16:34 > 0:16:39I'm drawn to this amazing window. Look at this, it's almost double my height.
0:16:39 > 0:16:41You can't beat looking out there
0:16:41 > 0:16:44onto those wonderful London stucco-fronted properties.
0:16:44 > 0:16:47That really is a fantastic view.
0:16:47 > 0:16:49But coming back to this room,
0:16:49 > 0:16:53a bit of a woodchip nightmare, it's everywhere.
0:16:53 > 0:16:55And when you think about getting two sofas in here,
0:16:55 > 0:16:59it could be a little bit on the small side.
0:16:59 > 0:17:03Not so great. Let's look around the rest of the property.
0:17:03 > 0:17:09The narrowness of this room belies the fact that these were originally big wide rooms
0:17:09 > 0:17:11that have since been partitioned.
0:17:11 > 0:17:13I'm not sure if that was successful.
0:17:15 > 0:17:20The place is oddly laid out with the bathroom a few steps down from the bedroom at the back.
0:17:20 > 0:17:24Even though it doubles up as a utility area, it still feels a waste of space.
0:17:24 > 0:17:26OK, here's a thought.
0:17:26 > 0:17:29This is a very old-fashioned layout.
0:17:29 > 0:17:33How about turning the bedroom into your lounge and the bathroom into the kitchen?
0:17:33 > 0:17:38Then you'd be left with two potential bedrooms where the living room and kitchen are now.
0:17:38 > 0:17:43It may sound crazy, but it's something plenty of developers have done around here,
0:17:43 > 0:17:45convert a one-bed into a two-bed.
0:17:45 > 0:17:48Despite the huge amount of work involved and huge costs,
0:17:48 > 0:17:50I think it could still be worth it.
0:17:50 > 0:17:55As it stands, the size of this flat as a one-bed in this area is a luxury.
0:17:55 > 0:17:57If I wanted to make some cash on this,
0:17:57 > 0:18:00I'd look at getting as much out of it as I could.
0:18:00 > 0:18:04For many Londoners, postcode is more important than square footage.
0:18:04 > 0:18:08So I think this re-jig, well, it might just work.
0:18:15 > 0:18:18So sitting room into bedroom one.
0:18:18 > 0:18:20kitchen into bedroom two,
0:18:20 > 0:18:22bathroom to kitchen,
0:18:22 > 0:18:24bedroom to sitting room,
0:18:24 > 0:18:27squeeze a bathroom in somewhere and hey presto!
0:18:27 > 0:18:30A two-bedroomed flat. Does the idea have legs?
0:18:30 > 0:18:33What does a local estate agent think?
0:18:33 > 0:18:38There's plenty of scope to make a good bit of money out of this flat.
0:18:38 > 0:18:42I think the best angle would be to turn it into a two-bed flat.
0:18:42 > 0:18:46There's enough floor space and it should be quite a simple building project.
0:18:46 > 0:18:51If you carried out such a project, what change in rental revenue might you see?
0:18:53 > 0:18:55As a one-bedroomed flat,
0:18:55 > 0:19:00this would be achieving 260, maybe 270 per week, depending on the spec.
0:19:00 > 0:19:04If you convert it to a two-bed flat with a similar spec,
0:19:04 > 0:19:09then we'd achieve as much as 330, 340 per week, I'd suggest.
0:19:09 > 0:19:13So an extra bedroom adds over 20% in rental revenue.
0:19:13 > 0:19:16Would it be the same for resale?
0:19:16 > 0:19:18In its present condition I would expect this flat
0:19:18 > 0:19:23to achieve in the region of 280, maybe £290,000.
0:19:23 > 0:19:26Once converted to a two-bedroomed flat,
0:19:26 > 0:19:29you could achieve as much as 375, perhaps.
0:19:29 > 0:19:33If it was just refurbished as a one-bedroomed flat,
0:19:33 > 0:19:36maybe you'd achieve as much as 320.
0:19:36 > 0:19:39So that 245,000 guide price
0:19:39 > 0:19:41may be more attractive than it first appears.
0:19:44 > 0:19:46This flat is more than just a fair bet.
0:19:46 > 0:19:50I think it's a super property that it would be hard to lose money on.
0:19:50 > 0:19:54Get that second bedroom in and you could see profits soaring.
0:19:54 > 0:19:58Of course, all this depends on what it went for at the auction.
0:20:02 > 0:20:03Lot 30.
0:20:03 > 0:20:08West Ken. Flat. Got those nice deep windows.
0:20:08 > 0:20:11I don't know. West Ken. Where would you like to start?
0:20:11 > 0:20:15220 down here. 225 anywhere?
0:20:15 > 0:20:17This lady's first. 225.
0:20:17 > 0:20:18230.
0:20:18 > 0:20:21235. 240.
0:20:22 > 0:20:24245.
0:20:24 > 0:20:27250. 255.
0:20:27 > 0:20:29Should have got there first.
0:20:29 > 0:20:32250. 255 over here.
0:20:32 > 0:20:34251. 252.
0:20:34 > 0:20:37253. 254.
0:20:37 > 0:20:39255.
0:20:39 > 0:20:40256.
0:20:40 > 0:20:42257.
0:20:42 > 0:20:44258.
0:20:44 > 0:20:46259.
0:20:46 > 0:20:47260.
0:20:47 > 0:20:50261. Yeah?
0:20:50 > 0:20:51Yes? 261.
0:20:51 > 0:20:53Back in. 262.
0:20:53 > 0:20:55263.
0:20:55 > 0:20:57263.
0:20:57 > 0:20:58I love it!
0:20:58 > 0:21:00264.
0:21:00 > 0:21:02265.
0:21:02 > 0:21:04266.
0:21:05 > 0:21:07267?
0:21:08 > 0:21:11266 down here. 267 elsewhere?
0:21:11 > 0:21:14If not, 266. First time,
0:21:14 > 0:21:15second time,
0:21:15 > 0:21:18third and last time. Have you all done?
0:21:19 > 0:21:21Sold 266. Well done.
0:21:21 > 0:21:23Nice lot, that.
0:21:23 > 0:21:26At just a little over the guide price,
0:21:26 > 0:21:29for 266,000, the new owners of the Kensington flat
0:21:29 > 0:21:33are first-time property developers Kamal and his wife Pavine.
0:21:33 > 0:21:36Whilst Pavine looked round their new acquisition,
0:21:36 > 0:21:38I chatted to Kamal.
0:21:40 > 0:21:42- Kamal, congratulations.- Thank you.
0:21:42 > 0:21:45You started the bidding off on auction day. You were there!
0:21:45 > 0:21:48- Indeed I was.- How much did you want to buy this flat?
0:21:48 > 0:21:54I actually was prepared to go up to 300,000.
0:21:54 > 0:21:59- Do you feel you've got yourself a bargain?- I think I did.
0:21:59 > 0:22:01How well do you know this area?
0:22:01 > 0:22:03Not at all!
0:22:03 > 0:22:05I was advised by a friend of mine
0:22:05 > 0:22:09and he said, "I think it's a good location."
0:22:09 > 0:22:14- Where do you live?- I live in Kent. - What do you do with your time at the moment?
0:22:14 > 0:22:17Well, I'm a retired doctor.
0:22:17 > 0:22:20I don't do anything now. Nothing in particular.
0:22:20 > 0:22:24So who is responsible for you buying this flat, then?
0:22:24 > 0:22:29Well, actually, it's my wife who is the banker.
0:22:29 > 0:22:35- Yes.- And the investor. So she was working and I was chasing after the property.
0:22:35 > 0:22:41So with a bit of encouragement from his wife and his property developing friend,
0:22:41 > 0:22:43and a fair amount of trust,
0:22:43 > 0:22:46Kamal has taken the plunge into the property market.
0:22:50 > 0:22:57- What are you going to do to this place?- We're going to refurbish it internally.
0:22:57 > 0:23:00And we're going to convert it into a two-bedroom flat
0:23:00 > 0:23:03with a new kitchen/diner.
0:23:03 > 0:23:05Where are you putting the second bedroom?
0:23:05 > 0:23:09The second bedroom will be in the present kitchen.
0:23:09 > 0:23:12The kitchen will go to the rear,
0:23:12 > 0:23:16where there is a large bathroom and toilet.
0:23:16 > 0:23:20- What will you use this room for? - This room will be the lounge.
0:23:20 > 0:23:23So, great minds think alike!
0:23:23 > 0:23:26Switch lounge and bedroom around, turn the bathroom into a kitchen,
0:23:26 > 0:23:29the kitchen into a bedroom and you have two bedrooms.
0:23:29 > 0:23:32But we're missing something.
0:23:32 > 0:23:35The burning question. Where's the bathroom going?
0:23:35 > 0:23:41Now, the bathroom, we have to find a place in the middle of the flat for the bathroom.
0:23:41 > 0:23:47That will be between the future lounge and the bedroom.
0:23:47 > 0:23:49It will be a shower cubicle
0:23:49 > 0:23:51and a toilet. No bath.
0:23:51 > 0:23:54- So we can't even call it a bathroom. - No.
0:23:55 > 0:23:59The plan is to rent out this flat. So without a bath, the shower room
0:23:59 > 0:24:03will have to be top-notch to attract potential tenants.
0:24:03 > 0:24:05So no scrimping here!
0:24:05 > 0:24:08What sort of budget are you looking at to do the work?
0:24:08 > 0:24:11- My budget is 35 to 40,000.- OK.
0:24:11 > 0:24:17Will you be driving up from Kent most days or just a few days a week?
0:24:17 > 0:24:21I'll stay here in my son's place in Barking.
0:24:21 > 0:24:25I will be supervising all the work
0:24:25 > 0:24:27so I'll come and look at what's going on.
0:24:27 > 0:24:31- How does your wife feel about this? Excited?- Very excited.
0:24:31 > 0:24:35She thinks it's a great idea.
0:24:35 > 0:24:38Well, it might be a great idea for her,
0:24:38 > 0:24:40but it's Kamal who'll be driving the project.
0:24:40 > 0:24:44Let's hope that everyone's faith in each other is justified.
0:24:48 > 0:24:51This flat is in dire need of some surgery.
0:24:51 > 0:24:54Retired doctor Kamal is the man to do it.
0:24:54 > 0:24:58This is a big operation, though, for a novice developer.
0:24:58 > 0:25:01Will Kamal resuscitate this flat?
0:25:01 > 0:25:02Will it make him a fortune?
0:25:02 > 0:25:05You can find out later on in the programme.
0:25:07 > 0:25:12Coming up: Parts of this Derby house might call for drastic action.
0:25:12 > 0:25:16One course of action is to knock it down and start again.
0:25:18 > 0:25:22Back in London, it's never too late to acquire new skills.
0:25:22 > 0:25:26I've learned quite a bit. I never had any experience before.
0:25:28 > 0:25:32First, we're off to Wales to see how Richard's plans worked out.
0:25:32 > 0:25:36It wasn't quite what I wanted, but we had far more than I expected.
0:25:38 > 0:25:41Just a few miles from Cardiff city centre,
0:25:41 > 0:25:45local man Richard bought this three-bed end-of-terrace stone-built house
0:25:45 > 0:25:49for £184,000.
0:25:49 > 0:25:51This was to be his new home
0:25:51 > 0:25:55under the element of a change in direction and approach to life.
0:25:56 > 0:26:00I just decided that having worked for the last 25 years
0:26:00 > 0:26:05I would take a six-month career break to decide what I wanted to do with my life.
0:26:05 > 0:26:09Over the last two to three months, I've lost two stone in weight.
0:26:09 > 0:26:12It's been a huge phenomena for me.
0:26:14 > 0:26:16So, in a relatively short time,
0:26:16 > 0:26:21Richard's managed to make a big change to both his work and physical well-being.
0:26:21 > 0:26:25But was he as successful in changing his Cardiff cottage?
0:26:25 > 0:26:29It's now 11 months later and we're back to find out.
0:26:29 > 0:26:32Yes, the tree has gone.
0:26:37 > 0:26:41Inside, the place is almost unrecognisable,
0:26:41 > 0:26:45with laminate floors and newly-plastered and decorated walls.
0:26:46 > 0:26:51From the dining room, you can now reach a stunning new kitchen.
0:27:05 > 0:27:08As you can see, when you came last time
0:27:08 > 0:27:10there was a very small kitchen here
0:27:10 > 0:27:13with a bathroom and toilet on this side.
0:27:13 > 0:27:16We've more than doubled the size of this room.
0:27:16 > 0:27:19I've put in water under floor heating.
0:27:19 > 0:27:21Obviously the fitted kitchen.
0:27:21 > 0:27:25And my favourite feature of the whole house
0:27:25 > 0:27:28are the electric Velux windows.
0:27:32 > 0:27:37The Velux windows are just part of Richard's fabulous new rear addition.
0:27:40 > 0:27:44There's a single-storey kitchen extension.
0:27:44 > 0:27:48The end gable wall has been extended and extra windows added.
0:27:50 > 0:27:53We went to the planners and said, "This is what we want."
0:27:53 > 0:27:59I doubled up on everything. I went for double width and double depth on three floors,
0:27:59 > 0:28:05hoping that we would get the double on the bottom and standard on the top.
0:28:05 > 0:28:12We did a bit of negotiations and we had to think about a metre deeper on the top two floors.
0:28:12 > 0:28:14So it wasn't quite what I wanted,
0:28:14 > 0:28:16but we had far more than what I expected.
0:28:18 > 0:28:23It's the gable extension that's enabled Richard to change the upstairs layout.
0:28:23 > 0:28:28It was originally one decent-sized bedroom with two quirky bedrooms.
0:28:28 > 0:28:32Now I think I've got more or less four double bedrooms
0:28:32 > 0:28:34and the bonus room upstairs.
0:28:34 > 0:28:37And you could get a double bed in there if you wanted.
0:28:37 > 0:28:39But it can be used as a studio or an office.
0:28:39 > 0:28:43Upstairs now consists of some revamped old rooms
0:28:43 > 0:28:45but mainly new spaces.
0:28:45 > 0:28:49The rooms in the extension show where the original outer wall was.
0:28:58 > 0:29:01The master bedroom is en-suite.
0:29:09 > 0:29:13And yes, there is now a bathroom upstairs.
0:29:14 > 0:29:18A stunning loft conversion provides even more rooms.
0:29:25 > 0:29:31And Richard has now got the views he'd hoped for across to the park.
0:29:35 > 0:29:39When it started off, I had the bright idea of taking a break from work,
0:29:39 > 0:29:45this would be my project. Then a job came up in Wales's leading cancer centre
0:29:45 > 0:29:49and it was a job I really wanted to go and do for my own personal reasons
0:29:49 > 0:29:54and therefore I was very lucky that the work was carried out in the capable hands of my builder.
0:29:54 > 0:29:59Fortunately, they started work at 7.00am and didn't finish till after I got home
0:29:59 > 0:30:04so I was here every single day and every weekend, to make sure things were going to plan.
0:30:04 > 0:30:08Richard may have played a more background role than he first thought,
0:30:08 > 0:30:12but he was also hoping that the dreaded Japanese knotweed in the garden
0:30:12 > 0:30:14would remain low-profile, too.
0:30:15 > 0:30:21The knotty little problem with the knotweed - touch wood - is under control at the moment.
0:30:21 > 0:30:27It's obviously not going to go away. I've got a coping mechanism. It'll take three years to finish,
0:30:27 > 0:30:29but so far, so good!
0:30:29 > 0:30:32As to the hot tub, let's see what the summer brings.
0:30:32 > 0:30:36And as to the garden, that's obviously the next project!
0:30:36 > 0:30:43So the hot tub and sorting the garden out are more to add to his current expenditure.
0:30:47 > 0:30:51The original budget was 60,000, but that was a guess off the top of my head.
0:30:51 > 0:30:55When I sat down with the architect, a more realistic budget was 80,000.
0:30:55 > 0:30:57That's what I've come in at.
0:30:57 > 0:31:00£80,000 is quite an investment.
0:31:00 > 0:31:04But this is going to be Richard's new home. Isn't it?
0:31:04 > 0:31:06I'm planning to live in for a short period.
0:31:06 > 0:31:09It could be the long period. It depends on your valuations!
0:31:11 > 0:31:15# So you gotta let me know
0:31:15 > 0:31:17# Should I stay or should I go? #
0:31:17 > 0:31:23Richard bought this place for £184,000 and spent another £80,000
0:31:23 > 0:31:28on it. With costs, he's sunk nearly £270,000 into it.
0:31:28 > 0:31:33So to help him decide whether to take the money and run or get ready to move in,
0:31:33 > 0:31:36we asked along two local property experts.
0:31:39 > 0:31:41Lovely property. Bright and airy.
0:31:41 > 0:31:45A very large property with the two-storey extension at the rear.
0:31:45 > 0:31:48It's a very popular residential area.
0:31:48 > 0:31:54I think could have done a bit better retaining some original features.
0:31:54 > 0:31:57It might be a bit bland for some buyers in this area.
0:31:57 > 0:32:00But overall, a very nice job.
0:32:00 > 0:32:01It's a very nice house.
0:32:01 > 0:32:04The finish that's been done is very, very good.
0:32:04 > 0:32:09Lovely kitchen. Nice addition with multiple bathrooms.
0:32:09 > 0:32:11A lovely feature in the attic room, as well.
0:32:11 > 0:32:13An enthusiastic response.
0:32:13 > 0:32:19But does it mean Richard's invested around £270,000 wisely?
0:32:19 > 0:32:23I would market this property somewhere in the region of £350,000.
0:32:23 > 0:32:27I would look to market this property for £325,000.
0:32:27 > 0:32:34Well, if I go in my pocket and look at my valuation here that I worked out before,
0:32:34 > 0:32:39it was a conservative 320 because I didn't want to be too disappointed. So I'm delighted.
0:32:39 > 0:32:43Does that mean he will sell it now or move in?
0:32:46 > 0:32:49I'll put it on the market at the higher end
0:32:49 > 0:32:51and see if I get any bites.
0:32:51 > 0:32:56In fact, Richard has put it on the market for £360,000.
0:32:56 > 0:32:58Judging by the interest he's already had,
0:32:58 > 0:33:03the signs are he will sell it and move on to a new challenge.
0:33:14 > 0:33:20I'm in Derby, in the Midlands, visiting a property two miles from the city centre,
0:33:20 > 0:33:23in the large, well-established suburb of Chaddesden.
0:33:23 > 0:33:28This is Wiltshire Road, reasonably well located for Derby city centre.
0:33:28 > 0:33:32I'm here to see a three-bedroomed semi-detached.
0:33:32 > 0:33:34That's it. Let's take a look.
0:33:34 > 0:33:38This is quite a busy road, next to a bus stop
0:33:38 > 0:33:42and opposite a fire station, so not exactly a quiet suburban retreat.
0:33:42 > 0:33:44But the house looks OK from the outside,
0:33:44 > 0:33:49with its own driveway, lots of off-street parking, and it's double-glazed.
0:33:54 > 0:33:58The guide price was 88,000 quid, so what do you get for your money?
0:33:58 > 0:34:00Doesn't look too bad to start off with.
0:34:00 > 0:34:04Entrance hall, a front sitting room there,
0:34:04 > 0:34:08but as you move to the rear of the property, it goes horribly wrong.
0:34:08 > 0:34:11That's the kitchen - very long, very narrow.
0:34:11 > 0:34:15Through to rear sitting room, or this could be your main living room.
0:34:15 > 0:34:19Not a bad size. But when you get to the rear, you have a little extension.
0:34:19 > 0:34:22Another little entrance through to the kitchen.
0:34:22 > 0:34:26It's just a bit too corridors and walls that don't need to be there.
0:34:26 > 0:34:31So a lot of space, but I don't think it's being utilised well at all.
0:34:32 > 0:34:39This is obviously a property where someone's stopped half-way through renovation or maybe just given up.
0:34:39 > 0:34:42There's quite a bit of making-good left to do.
0:34:47 > 0:34:51Upstairs, a bathroom that's seen better days, but is at least a reasonable size.
0:34:51 > 0:34:54A single bedroom and two doubles. Nothing untoward.
0:34:54 > 0:34:58Until you walk in to the front double. Look at that.
0:34:58 > 0:35:00That's not good news. My guess
0:35:00 > 0:35:02is that the roof is either leaking
0:35:02 > 0:35:07or the gulley between this and the neighbouring property has got some sort of problem.
0:35:07 > 0:35:09Either way, you want to get that sorted out
0:35:09 > 0:35:13before the damage that it could create gets much worse.
0:35:22 > 0:35:26At the rear of the property is an extension which is a reasonable size
0:35:26 > 0:35:31but unfortunately has the words "bodge job" written in huge neon letters all over it.
0:35:31 > 0:35:34The lintel above the top of the window is all over the place.
0:35:34 > 0:35:36The brickwork doesn't match up.
0:35:36 > 0:35:41I don't know what's been going on, but bits have been filled in over time.
0:35:41 > 0:35:45It hasn't even been properly keyed in to the main body of the house.
0:35:45 > 0:35:50So the most radical course of action is knock it down and start again.
0:35:50 > 0:35:52But you have to factor that into the costs.
0:35:52 > 0:35:56All in all, a bit of a shame, a blight on the property.
0:35:56 > 0:36:00An extension like this probably wouldn't have needed planning permission
0:36:00 > 0:36:03but best to check it had building regulation approval.
0:36:03 > 0:36:06If that's OK, the cheapest option
0:36:06 > 0:36:11would be to cover up the dodgy brickwork by rendering it.
0:36:11 > 0:36:13So was this property a good buy?
0:36:13 > 0:36:16Let's ask the auctioneer who sold it.
0:36:18 > 0:36:22Three-bedroomed houses like this have a fair demand in Chaddesden.
0:36:22 > 0:36:25It's not the most popular of residential suburbs,
0:36:25 > 0:36:28it's average housing, average price scale,
0:36:28 > 0:36:30but generally, they do sell fairly well.
0:36:30 > 0:36:33What could it make if rented out?
0:36:34 > 0:36:37Once improved, finished off and so on,
0:36:37 > 0:36:39and in presentable condition,
0:36:39 > 0:36:45this would have a rental value of about 525 to £550 a calendar month.
0:36:45 > 0:36:48And if re-sale was on the cards?
0:36:49 > 0:36:52Properties here tend to have a ceiling value.
0:36:52 > 0:36:55I would say it's probably going to have an absolute maximum value
0:36:55 > 0:36:57of about 130,000.
0:36:57 > 0:37:02The possibility is you might struggle to get that much on today's market.
0:37:02 > 0:37:05Still, with a guide price of £88,000,
0:37:05 > 0:37:09if it were to achieve £130,000 at re-sale,
0:37:09 > 0:37:11there could be money in it.
0:37:11 > 0:37:16So, a solid enough property, but one that you could really add value to,
0:37:16 > 0:37:19primarily by playing around with the downstairs layout.
0:37:19 > 0:37:23Let's see who went for it when it went under the hammer.
0:37:26 > 0:37:31Where do you want to be on this one, ladies and gentlemen? 88, guide price.
0:37:31 > 0:37:3488. 85. I'll take 85 to start.
0:37:34 > 0:37:3786, somewhere? 86 is bid on the left.
0:37:37 > 0:37:39At £86,000.
0:37:39 > 0:37:4187. 87. 88.
0:37:41 > 0:37:4389.
0:37:43 > 0:37:4689. 90? 90,000 is bid.
0:37:46 > 0:37:48At 90,000. 91.
0:37:48 > 0:37:4992.
0:37:49 > 0:37:5193. 94.
0:37:51 > 0:37:5494. 95.
0:37:54 > 0:37:5596 is bid.
0:37:55 > 0:37:5697.
0:37:56 > 0:37:59- 100.- 100,000.
0:37:59 > 0:38:00At £100,000.
0:38:00 > 0:38:02500.
0:38:02 > 0:38:04101.
0:38:04 > 0:38:06Yes, 101. 500.
0:38:06 > 0:38:08102. 102?
0:38:08 > 0:38:10500. 103.
0:38:10 > 0:38:13103,500.
0:38:13 > 0:38:14104.
0:38:15 > 0:38:17104 and a half.
0:38:17 > 0:38:20£104,500. On the right.
0:38:20 > 0:38:21Once.
0:38:21 > 0:38:23Twice. Third time.
0:38:23 > 0:38:26Sold at 104,500.
0:38:27 > 0:38:32The happy couple who made that final bid of 104,500
0:38:32 > 0:38:35are husband and wife Gary and Cathy.
0:38:35 > 0:38:39I met them back at their new property to find out more.
0:38:39 > 0:38:42Good to meet you both. Congratulations!
0:38:42 > 0:38:45- Tell me why you wanted to buy the house.- Price, really.
0:38:45 > 0:38:51We've been to auction before and been out-bid. The 100,000 mark was our price
0:38:51 > 0:38:53and this property was that amount.
0:38:53 > 0:38:57- Do you know the area?- Not at all, no.- Never been here before!
0:38:57 > 0:38:58Once, to see the house!
0:38:59 > 0:39:03- Where are you from? - We've been living in Spain.
0:39:03 > 0:39:05Spain? What were you doing in Spain?
0:39:05 > 0:39:08- Estate agency and letting office. - Wow.
0:39:08 > 0:39:11- Must have been tough in recent years?- Very tough.- OK.
0:39:11 > 0:39:15So why Derby? Is this where you're located and based in general?
0:39:15 > 0:39:20- No.- No.- We're in Norfolk at the moment.- Norfolk?- Yeah.
0:39:20 > 0:39:23We'll be here in the week and Norfolk at weekends.
0:39:23 > 0:39:28Gary and Cathy's current home in Norfolk is three-and-a-half hours away.
0:39:28 > 0:39:31That's quite some commute while they're working on the house.
0:39:31 > 0:39:34They plan to stay on-site during the week
0:39:34 > 0:39:37and go back to Norfolk at weekends.
0:39:37 > 0:39:40- You're going to live in the house while you do it up?- Yeah.
0:39:42 > 0:39:46- We bought a bed yesterday!- The plan is to do up one of the bedrooms
0:39:46 > 0:39:49and get it really nice so we've got a nice room to go to
0:39:49 > 0:39:51when we're finished.
0:39:51 > 0:39:53Get the central heating before we move in.
0:39:53 > 0:39:58So at least it's sort of warm, and we'll work around it.
0:39:58 > 0:39:59Have you done this before?
0:39:59 > 0:40:02I used to be a painter and decorator.
0:40:02 > 0:40:07I've learnt how to fit kitchens, fit bathrooms, tile floors, walls.
0:40:07 > 0:40:10Most things, really.
0:40:10 > 0:40:14- And Cathy?- I can shop! I can buy things and tidy up, I guess.
0:40:14 > 0:40:16- Support for Gary, really.- Right.
0:40:16 > 0:40:19- The main thing is, you're doing it together.- Yeah.
0:40:19 > 0:40:22Which is great. How hard has it been coming back from Spain?
0:40:22 > 0:40:26For me, it's been quite easy because I missed England.
0:40:26 > 0:40:31- I'm happy to be back in England. But Gary...- I like the sun.
0:40:31 > 0:40:33That's the main part I'll miss.
0:40:33 > 0:40:37But we weren't earning any money in Spain, so we had to come back, unfortunately.
0:40:37 > 0:40:39We'll make the most of it.
0:40:39 > 0:40:44- Definitely. And you start in a new direction in lots of ways.- Yes.
0:40:46 > 0:40:50Gary and Cathy returned from Spain just four months ago.
0:40:50 > 0:40:52With no jobs to come back to,
0:40:52 > 0:40:57they decided to develop property as a self-generating job creation scheme.
0:40:57 > 0:41:00What are their specific ideas for this Derby house?
0:41:03 > 0:41:06Just modernise it generally. Upstairs isn't too bad.
0:41:06 > 0:41:09The bedroom's a bit small, the smallest one. The others are doubles.
0:41:09 > 0:41:13Just put a nice bathroom in and a nice kitchen
0:41:13 > 0:41:16and just generally bring it up to modern standards.
0:41:16 > 0:41:19Downstairs at the back is higgledy-piggledy.
0:41:19 > 0:41:23It's got to be sorted out some way or other, which we're working on.
0:41:23 > 0:41:27- This extension looks like it's been bodged.- Terrible.- Yeah.
0:41:27 > 0:41:29Get an open plan kitchen in,
0:41:29 > 0:41:32a downstairs loo if we can.
0:41:32 > 0:41:33Re-jig it totally.
0:41:33 > 0:41:37Any idea how much it's going to cost, to do what you want to do?
0:41:37 > 0:41:42We'd like to bring it in at a total cost of about 115, all in.
0:41:42 > 0:41:46- So ten, really. - Probably about just under ten.
0:41:46 > 0:41:48- See how we go. - She spends more money than me!
0:41:48 > 0:41:52See how we go. Keep it as low as we can, really.
0:41:52 > 0:41:54It's tight, but if you're doing it yourself,
0:41:54 > 0:41:56you should be all right.
0:41:56 > 0:42:01Most of the money should go on materials cos the labour's free.
0:42:01 > 0:42:04And the big picture plan if this goes well?
0:42:04 > 0:42:06How big will the portfolio be?
0:42:06 > 0:42:09I don't know if it's about portfolio size.
0:42:09 > 0:42:12It's maybe going from one place to another place,
0:42:12 > 0:42:18and see how we go. It's early days. Just test the water and see if we're any good at it. That's the plan.
0:42:18 > 0:42:20Great. Good luck. Congratulations.
0:42:20 > 0:42:22Look forward to seeing how you get on.
0:42:22 > 0:42:25Thank you.
0:42:25 > 0:42:29This is no small project for a first time development.
0:42:29 > 0:42:32Gary and Cathy are pinning a lot on its success
0:42:32 > 0:42:35but with Gary's practical skills and Cathy's support,
0:42:35 > 0:42:37they're off to a flying start.
0:42:37 > 0:42:42The issues Gary and Cathy face doing this house up will be more emotional than practical.
0:42:42 > 0:42:45Moving from sunny Spain to fairly cold Derby,
0:42:45 > 0:42:50living in the house while they're doing it up, and having their home so far away in Norfolk.
0:42:50 > 0:42:53All things to resolve. How will they get on?
0:42:53 > 0:42:55You can find out later in the show!
0:42:58 > 0:43:00The moment of reckoning has arrived.
0:43:00 > 0:43:03Have those property gambles paid off
0:43:03 > 0:43:07- or have our buyers backed the wrong horse?- Let's find out.
0:43:08 > 0:43:11Time to rush back to West Kensington in London
0:43:11 > 0:43:13to see how retired doctor Kamal and his wife Pavine's
0:43:13 > 0:43:20£266,000 flat is recovering after what sounded like a major operation!
0:43:20 > 0:43:23What are you going to do to this place?
0:43:23 > 0:43:26We're going to convert it into a two-bedroom flat.
0:43:26 > 0:43:30The second bedroom will be in the present kitchen.
0:43:30 > 0:43:33The kitchen will go to the rear,
0:43:33 > 0:43:37where there is a large bathroom and toilet.
0:43:38 > 0:43:42Just three months later, we're back to check on the patient's progress.
0:43:42 > 0:43:46Although the outer skin still needs some cosmetic surgery,
0:43:46 > 0:43:49inside, the reconstruction work has begun.
0:43:49 > 0:43:54Rooms have been switched around, there are now laminate floors,
0:43:54 > 0:43:56and it's been redecorated throughout.
0:43:56 > 0:43:59# Changes Turn and face the strain
0:43:59 > 0:44:02# Changes Oh, look out... #
0:44:02 > 0:44:06So the kitchen is now a bedroom while the bathroom is the kitchen.
0:44:06 > 0:44:08# Turn and face the strain
0:44:08 > 0:44:09# Changes... #
0:44:09 > 0:44:12This room was the bathroom and toilet.
0:44:12 > 0:44:16And now where you're standing is the kitchen/diner.
0:44:16 > 0:44:21So it's a completely new kitchen
0:44:21 > 0:44:26and we're quite happy about the outcome of the kitchen
0:44:26 > 0:44:30although it needs more polishing to the finish
0:44:30 > 0:44:36and I'm hoping that in two weeks' time, it will be complete.
0:44:36 > 0:44:38So it's well underway.
0:44:38 > 0:44:41But the tricky part was to find room for the bathroom
0:44:41 > 0:44:44or, more accurately, the shower room.
0:44:44 > 0:44:47Kamal and his builders have cleverly managed to insert one
0:44:47 > 0:44:49between the bedroom and lounge...
0:44:51 > 0:44:54..to complete what is now a two-bed flat.
0:44:57 > 0:45:01So Kamal and his wife, Pavine, have nearly achieved what they set out to do.
0:45:01 > 0:45:03How do they feel about it all?
0:45:03 > 0:45:07When we came first time, I thought we had made a mistake.
0:45:07 > 0:45:12Then afterwards, I got used to this place and I started liking it.
0:45:12 > 0:45:15This flat was bought as an investment to top up their pension.
0:45:15 > 0:45:20But taking on a project like this is hardly taking it easy in retirement.
0:45:20 > 0:45:22Every morning I was here, almost,
0:45:22 > 0:45:26and I used to co-ordinate with the builder,
0:45:26 > 0:45:29the architect, the structural engineer,
0:45:29 > 0:45:31the electrician.
0:45:31 > 0:45:35He kept a brave face, though I could see from his face he was tired.
0:45:35 > 0:45:38At the end of the day, when he came home,
0:45:38 > 0:45:42he would just read the newspaper and go to sleep.
0:45:42 > 0:45:45So that's how tired he was!
0:45:45 > 0:45:47I have learned quite a bit.
0:45:47 > 0:45:49I never had any experience before!
0:45:49 > 0:45:55Kamal has a property developer friend who organised the work and sorted out builders
0:45:55 > 0:45:58while Kamal oversaw the project and paid the bills.
0:45:58 > 0:46:01I thought it would be about 35,000
0:46:01 > 0:46:07but I have been given an invoice of 44,600 and something.
0:46:07 > 0:46:09But there will be little pluses as well.
0:46:09 > 0:46:12I think it will be well over 45,000.
0:46:13 > 0:46:20£45,000 on top of a purchase price of 266,000, plus costs,
0:46:20 > 0:46:23brings Kamal and Pavine's total expenditure
0:46:23 > 0:46:25to around 320,000.
0:46:25 > 0:46:29That sounds a lot, but this is West Kensington.
0:46:29 > 0:46:33What do two local estate agents think of the progress so far?
0:46:33 > 0:46:37My first impression of the property is he's done a good job.
0:46:37 > 0:46:40It looks as if it's aimed for the rental market.
0:46:40 > 0:46:42Wood floors, nice and clean, high ceilings.
0:46:42 > 0:46:44I'm a little disappointed.
0:46:44 > 0:46:48I was expecting the finish to be of a higher quality.
0:46:48 > 0:46:49The flooring's very nice.
0:46:49 > 0:46:52Not entirely convinced with the layout.
0:46:52 > 0:46:55Quite honestly, that bedroom is tiny,
0:46:55 > 0:47:00and it may lend itself better as the kitchen which was originally there.
0:47:00 > 0:47:01Hmm.
0:47:01 > 0:47:05Does this mean they've got a costly mistake on their hands,
0:47:05 > 0:47:09with £320,000 of their retirement fund invested here?
0:47:09 > 0:47:14When this flat is completed, I would expect to market it at £350,000.
0:47:14 > 0:47:17To market this property, I'd look to market it at £350,000.
0:47:17 > 0:47:19Oh, my goodness, that's very good.
0:47:19 > 0:47:24Good. That's nice. So I'm not losing.
0:47:24 > 0:47:28Phew! So some signs of potential profit.
0:47:28 > 0:47:32But first and foremost, this was intended for the rental market.
0:47:35 > 0:47:40To rent out, I'd put it on the market for £1,250 per calendar month.
0:47:40 > 0:47:44If this came on the market for rental, obviously in a finished condition,
0:47:44 > 0:47:47I'd put it on the market at £1,350 per calendar month.
0:47:47 > 0:47:52Those rental figures equate to around £15,000 a year,
0:47:52 > 0:47:54just under a five per cent yield.
0:47:54 > 0:47:57Solid, but not spectacular.
0:47:57 > 0:48:00So, has it been worth the effort?
0:48:00 > 0:48:03Yes, I think we're quite pleased that we've taken it on
0:48:03 > 0:48:05after finding out the price it will be.
0:48:05 > 0:48:07And the rental value as well.
0:48:07 > 0:48:12Hopefully we will get whatever we were hoping for.
0:48:12 > 0:48:14Well, if you're pleased, so am I!
0:48:20 > 0:48:24# Take a holiday in Spain
0:48:24 > 0:48:27# Leave my wings behind me
0:48:28 > 0:48:32# Flush my worries down the drain
0:48:32 > 0:48:36# And fly away to somewhere new. #
0:48:36 > 0:48:40For many people, the idea of moving to Spain to live would be a dream come true.
0:48:40 > 0:48:45But for Gary and Cathy, after three years of running a lettings agency there,
0:48:45 > 0:48:48the desire to be home was stronger than the Spanish sun.
0:48:48 > 0:48:51So they returned to England, got a house in Norfolk to live in,
0:48:51 > 0:48:54and embarked on a property developing career.
0:48:54 > 0:49:00For £104,500, their first purchase was a three-bed semi in Derby
0:49:00 > 0:49:04over 150 miles away from their Norfolk home.
0:49:06 > 0:49:10- You're going to live here while you do it up?- Yeah.
0:49:10 > 0:49:14- We bought a bed yesterday.- The plan is to do up one of the bedrooms
0:49:14 > 0:49:18and get it nice so we've got a nice room to go to when we're finished.
0:49:20 > 0:49:24So, after swapping Spanish sun for six months of Derbyshire winter,
0:49:24 > 0:49:27how had the project fared?
0:49:29 > 0:49:32From the outside, it's certainly looking good.
0:49:40 > 0:49:46And inside? Well, the front room has really come on with an elegant makeover.
0:49:46 > 0:49:48The furnishings give it a lift.
0:49:49 > 0:49:55But it's the back dining room that's been completely transformed with a fabulous kitchen/diner.
0:49:55 > 0:49:59And a complete reorganisation of the other living spaces.
0:50:10 > 0:50:15The main change in the house is the kitchen which used to be in the utility room.
0:50:15 > 0:50:20Which is now in through here. There was a lot of work putting in a new drain.
0:50:20 > 0:50:25We've blocked off one of the walls here and a doorway here and another doorway here.
0:50:25 > 0:50:29We've put an RSJ in to create an opening in what will be the dining room.
0:50:29 > 0:50:33We've taken out the chimney breast so we could fit a nice cooker in
0:50:33 > 0:50:36and build the kitchen around that.
0:50:36 > 0:50:38And we're pleased with the result.
0:50:44 > 0:50:47I think the new layout is fantastic.
0:50:47 > 0:50:51It's open, bright, and makes the most of both Derbyshire sunshine
0:50:51 > 0:50:54and the new revitalised flat roof extension.
0:50:58 > 0:51:02From the new decking and patio, you can reach the good sized family garden.
0:51:07 > 0:51:11Upstairs, there's been impressive progress as well.
0:51:12 > 0:51:16The layout upstairs has pretty much stayed the same.
0:51:16 > 0:51:18This is the master bedroom.
0:51:18 > 0:51:22We put in fitted wardrobes. I put the doors up this morning. It has to be boxed in.
0:51:22 > 0:51:26I've sorted out the leak on the roof, filled in the hole in the ceiling,
0:51:26 > 0:51:30and this is pretty much nearly finished now.
0:51:32 > 0:51:36The other two bedrooms also have a bit of work to do before they're finished,
0:51:36 > 0:51:37but they're on their way.
0:51:46 > 0:51:48As is the bathroom.
0:51:53 > 0:51:57With all this work, it's clear it must have been a building site at times
0:51:57 > 0:52:00and no picnic living here. So how was it?
0:52:00 > 0:52:04It hasn't worked that well. We've only been home twice.
0:52:04 > 0:52:06It's not been ideal.
0:52:06 > 0:52:10But it's a double-edged sword, really.
0:52:10 > 0:52:14It's good to be here because you can carry on working and get up and start working,
0:52:14 > 0:52:17but it's nice to go home to a nice clean house.
0:52:17 > 0:52:19The worst thing is the dust.
0:52:19 > 0:52:23Every day, you have to spend an hour every day at the end,
0:52:23 > 0:52:27just clearing up dust cos you don't want it all upstairs.
0:52:27 > 0:52:30- Living in one room was... - Hard.- Quite hard.
0:52:30 > 0:52:34We didn't want to change the bathroom straightaway
0:52:34 > 0:52:36cos you were getting so dirty taking out walls
0:52:36 > 0:52:41so having to use someone else's horrible old bath wasn't pleasant, either!
0:52:41 > 0:52:44It's never easy living in a house you're working on.
0:52:44 > 0:52:50Not only is there the mess, but you're constantly reminded of the jobs that need to be done.
0:52:50 > 0:52:55We had a contractor in to run a new drain cos we moved the kitchen.
0:52:55 > 0:53:00And we had somebody come and do the two chimney breasts for us.
0:53:00 > 0:53:03- And that's it.- Apart from that, we've done everything ourselves.
0:53:03 > 0:53:05- Well, you have!- I have, yeah.
0:53:05 > 0:53:09Just the dogsbody is what I've been!
0:53:09 > 0:53:12You've saved us a lot of money by going to boot sales.
0:53:12 > 0:53:15We've been sourcing things as cheaply as possible.
0:53:16 > 0:53:20Buying at car boot sales and doing most of the work themselves
0:53:20 > 0:53:23should have kept the budget under control.
0:53:24 > 0:53:28The budget's gone well. We're over by a thousand, so it's 11,000.
0:53:28 > 0:53:31We've bought everything we need to buy now,
0:53:31 > 0:53:34so I think we've done quite well on that budget.
0:53:34 > 0:53:39It really is impressive to have done all this work for just £11,000.
0:53:39 > 0:53:42But with no siestas, a lot of dust and hard work,
0:53:42 > 0:53:45Spain must seem a long way away!
0:53:45 > 0:53:49It's been so, so cold and no central heating,
0:53:49 > 0:53:52so it's been hard, I think, don't you?
0:53:52 > 0:53:54- Yeah. And the views are not as nice! - No!
0:53:54 > 0:53:59We had a beach-side flat, so that's hard to get used to again.
0:54:05 > 0:54:10OK. The outlook from the house might not be as good as their one in Spain,
0:54:10 > 0:54:12but what about its financial outlook?
0:54:12 > 0:54:15That £11,000 budget,
0:54:15 > 0:54:18plus the £104,500 purchase price, with costs,
0:54:18 > 0:54:22takes the couple's total spend to around £120,000.
0:54:22 > 0:54:25So, has switching from sun and sand
0:54:25 > 0:54:28to sawdust and sandpaper paid off?
0:54:28 > 0:54:30What do two local property experts think?
0:54:30 > 0:54:33I've had a look round and it's fantastic.
0:54:33 > 0:54:35It's a really, really nice job.
0:54:35 > 0:54:39They've got some nice design ideas, so it's come up good.
0:54:39 > 0:54:42The house has changed a lot, certainly on the ground floor.
0:54:42 > 0:54:46It was a bit of a mess before, if I can say that nicely.
0:54:46 > 0:54:49But now first impressions are really positive
0:54:49 > 0:54:51and change it around, it looks good.
0:54:51 > 0:54:54The kitchen/living area is brilliant.
0:54:54 > 0:54:56It's just what people are looking for
0:54:56 > 0:55:00and some of the touches with lights and flooring finish it off nicely.
0:55:00 > 0:55:03Getting those finishing touches right is vital.
0:55:03 > 0:55:06It should help appeal to the rental market.
0:55:08 > 0:55:11I would suggest that it would have a rental value
0:55:11 > 0:55:16of between 550 and £575 a calendar month.
0:55:16 > 0:55:20If I put this property on the market for rental, we would get £550 per calendar month,
0:55:20 > 0:55:22due to the standard of finish.
0:55:22 > 0:55:26- That's not too bad, is it? - That's a good return.- That's OK.
0:55:26 > 0:55:29That's a healthy rental return.
0:55:29 > 0:55:34But ideally, Cathy and Gary hope to sell their £120,000 investment.
0:55:36 > 0:55:39On completion, I would value the property at about £135,000.
0:55:39 > 0:55:42I would value this property at £150,000.
0:55:42 > 0:55:46Can I have the number of the agent that said 150,000, please?
0:55:46 > 0:55:49- Delighted with that.- That's higher than what we expected.
0:55:49 > 0:55:54- We thought around the 130, 135 mark. - Yeah.
0:55:54 > 0:55:56- So very pleased.- Pleased with that.
0:55:56 > 0:56:02Certainly that £150,000 valuation would mean significant profit
0:56:02 > 0:56:05and that it had been a successful project.
0:56:05 > 0:56:11Cos it was our very first one, we weren't looking for a massive profit.
0:56:11 > 0:56:14We were looking mainly not to lose any money.
0:56:14 > 0:56:17- And a wage.- And make a wage for the time we've spent here.
0:56:17 > 0:56:22- So to make a bit of profit on top is...- Fantastic.- Fantastic. Good result.
0:56:22 > 0:56:26Coming home to England seems to have paid off.
0:56:26 > 0:56:28But they need to finish this house off completely
0:56:28 > 0:56:35not only to bring in some income but also so they can get back home to Norfolk.
0:56:35 > 0:56:37# That's why I tell you
0:56:39 > 0:56:42# You'd better be home
0:56:43 > 0:56:46# Soon. #
0:56:49 > 0:56:54Whether you're a property novice or an old hand,
0:56:54 > 0:56:55make sure you join us next time
0:56:55 > 0:56:58for more stories from the auction rooms.
0:56:58 > 0:57:01- Tune in to more Homes under the Hammer!- See you then.- Bye!- Bye!
0:57:22 > 0:57:25Subtitles by Red Bee Media Ltd