0:00:02 > 0:00:06- Welcome.- They say every house tells a story. We know that to be true.
0:00:06 > 0:00:12There are certainly stories to be told and secrets to uncover when you buy your home under the hammer.
0:00:37 > 0:00:41Now, at auction, properties are sold on a buyer-beware basis
0:00:41 > 0:00:45so you need to make sure you check them out before you purchase.
0:00:45 > 0:00:48Or you could be in for some nasty surprises.
0:00:48 > 0:00:52Well, let's see how today's buyers got on with their purchases.
0:00:53 > 0:00:58I do my homework on this former school caretaker's house in Kent.
0:00:58 > 0:01:02The only downside is this - what on earth were they thinking?
0:01:02 > 0:01:05Viewing this end of terrace in London is pretty unappetising.
0:01:05 > 0:01:08Ugh!
0:01:08 > 0:01:10Do you know what?
0:01:10 > 0:01:12I am not going in there.
0:01:12 > 0:01:17And on this stunning coastline, I see a real bargain.
0:01:17 > 0:01:23But there is a problem because the house, like many in Cornwall, is made from mundic block.
0:01:24 > 0:01:26All these properties have been sold at auction.
0:01:26 > 0:01:30We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:30 > 0:01:32It's yours, madam.
0:01:38 > 0:01:42I'm in Crayford, near Dartford in Kent.
0:01:42 > 0:01:48It lies south-east of London, just 15 miles or so from the city centre.
0:01:48 > 0:01:53Well, the house I'm here to see is the former caretaker's house of the local school.
0:01:53 > 0:01:55Well, from the outside, it looks pretty good.
0:01:55 > 0:02:01It had a guide price of £180,000 to £190,000, which seems pretty good for a detached property like that.
0:02:01 > 0:02:06The bad news straightaway, though, is, not surprisingly, it is right next door to the school.
0:02:06 > 0:02:08Now, that might put some people off.
0:02:08 > 0:02:11Let's hope the inside redeems itself.
0:02:20 > 0:02:24It was built in the 1960s and is on a quiet street.
0:02:24 > 0:02:30Although it is adjacent to this primary school, it has been separated on to its own plot.
0:02:30 > 0:02:32It's been empty for about eight years.
0:02:32 > 0:02:37The current school caretaker already had a house so the council put it up for auction.
0:02:41 > 0:02:46For a guide price of £180 to £190,000, this is a three-bedroomed property,
0:02:46 > 0:02:52and that garden space looks very generous.
0:02:52 > 0:02:57So what have we got? Through the front door, reasonable-sized entrance, somewhere to at least
0:02:57 > 0:03:00put your coats and stuff, and through into a really nice sized kitchen.
0:03:00 > 0:03:03Yes, it is a mess, yes, the units need getting rid of.
0:03:03 > 0:03:07But, you know, you could really work with this space so I really like that.
0:03:07 > 0:03:11And the kind of theme of almost open-plan continues when you come into this room here.
0:03:11 > 0:03:16The lounge - great big space, absolutely lovely.
0:03:16 > 0:03:18Lots of light flooding in here and it gets even better.
0:03:18 > 0:03:23They've already put sort of...well, not quite patio doors in here, but leading out onto the garden.
0:03:23 > 0:03:25The own downside is this!
0:03:25 > 0:03:27What on earth were they thinking?!
0:03:27 > 0:03:31This is some horribly tacked-on lean-to horrible affair.
0:03:31 > 0:03:35Having a space which integrates the garden with the house is really nice,
0:03:35 > 0:03:40but clearly this has to come down and put something a little bit more in keeping in its place.
0:03:40 > 0:03:42But, all in all, a great start.
0:03:42 > 0:03:51Putting up a new conservatory here would really help connect the large living area to that spacious garden
0:03:51 > 0:03:54and give the downstairs an open, modern feel.
0:03:57 > 0:04:01So upstairs, no great shocks.
0:04:01 > 0:04:03Oh, but one thing I just want to talk about.
0:04:03 > 0:04:05This banister, look at that.
0:04:05 > 0:04:10Nasty big gaps. If you had small people in this house, that would be very, very dangerous.
0:04:10 > 0:04:11Definitely get that sorted out.
0:04:11 > 0:04:13But no surprises here, really.
0:04:13 > 0:04:17Two good-sized bedrooms, one slightly smaller one.
0:04:17 > 0:04:19The only thing I would think about doing here apart from the banister,
0:04:19 > 0:04:22there's a loo and a separate bathroom.
0:04:22 > 0:04:24You might want to take out this wall here.
0:04:24 > 0:04:26It's probably only a stud partition. Nothing too great there.
0:04:26 > 0:04:28Get that out, make one big family bathroom.
0:04:28 > 0:04:33Other than that, you know, it is what it is.
0:04:33 > 0:04:36It's a decent enough little house.
0:04:36 > 0:04:39So with a new bathroom, kitchen and conservatory and a general
0:04:39 > 0:04:44spruce-up, I reckon you could add real value to this property.
0:04:48 > 0:04:52Well, there is one major fly in the ointment and that is access to the
0:04:52 > 0:04:55property which was previously through the grounds of the school.
0:04:55 > 0:04:59Since this has been separated off and sold, you can't obviously have that.
0:04:59 > 0:05:02The good news is that planning permission has been granted
0:05:02 > 0:05:05to lower this bit of kerb here and take access to the property across the pavement.
0:05:05 > 0:05:12In fact, it is stipulated in the sales particulars that whoever buys it actually has to do that.
0:05:12 > 0:05:17This would be an extra cost to the buyer, but it is a big plus that planning has already been granted.
0:05:17 > 0:05:20Let's hear the impressions of a local estate agent.
0:05:25 > 0:05:29A good, sizable home. Good sized rooms, excellent plot of land.
0:05:29 > 0:05:33The main selling points for me are the schools locally.
0:05:33 > 0:05:35You've got great sized rooms
0:05:35 > 0:05:40and the off-street parking that is going to be created.
0:05:40 > 0:05:44At the same time, great garden. Good for the family.
0:05:44 > 0:05:47I would estimate that you would have to spend approximately
0:05:47 > 0:05:51£20,000 for the work that would need to be done in the home.
0:05:51 > 0:05:56Possibly double glazing, central heating, new flooring, kitchen etc.
0:05:59 > 0:06:02So bearing in mind that guide price of £180 to £190,000,
0:06:02 > 0:06:06what could you get for this property once it's been done up?
0:06:09 > 0:06:11I would suggest probably in the current market
0:06:11 > 0:06:14you should be able to get around the £275,000 mark.
0:06:14 > 0:06:16What about the rental potential?
0:06:16 > 0:06:21You would probably anticipate probably £950 to maybe £1,050 per calendar month.
0:06:21 > 0:06:24Possibly not the most characterful house, but you know what, it would
0:06:24 > 0:06:28make a lovely family home, and I think great value for money.
0:06:28 > 0:06:31The biggest issue, of course, is sorting out those access problems.
0:06:31 > 0:06:35Let's see who fancied taking them on when it went to the auction.
0:06:37 > 0:06:41And then we go to lot 23, which is the former caretaker's house.
0:06:41 > 0:06:46Give me, what, £170,000 for it? 170?
0:06:46 > 0:06:50£170,000, in the room.
0:06:50 > 0:06:52I'm on the way. 170 I have.
0:06:52 > 0:06:54175, 180. 180, madam?
0:06:54 > 0:06:59180, 180, and five and 90.
0:06:59 > 0:07:01190 I'm looking for. At 190,000.
0:07:01 > 0:07:09190. 190, and 5. 195, 200, you don't have to worry about bussing them to school, do you? Not from here.
0:07:09 > 0:07:11200, can I say?
0:07:11 > 0:07:16200,000 and 5, 205, you certainly would be in the catchment area, wouldn't you?
0:07:16 > 0:07:21210, 210. 212. 212.
0:07:21 > 0:07:26At 214 I've got, 216, 218.
0:07:26 > 0:07:28218, may I say?
0:07:28 > 0:07:31There's two of you there. 218, 220.
0:07:31 > 0:07:38At 222. 221, 222, 222.
0:07:38 > 0:07:45At £221,000, to the original bidder in the aisle, for the first time at £221,000.
0:07:45 > 0:07:47For the second time at £221,000.
0:07:47 > 0:07:49Third and final time.
0:07:49 > 0:07:51Are we all done at 221?
0:07:51 > 0:07:54It's yours, madam, for 221.
0:08:00 > 0:08:07For £221,000, the successful bidder was Sylvia, but the house isn't for her.
0:08:09 > 0:08:13# See me and Julio down by the school yard... #
0:08:13 > 0:08:17It's for her daughter, Lucy, who's a teacher.
0:08:17 > 0:08:20They had their eye on the property for a number of years
0:08:20 > 0:08:23and headed down to the auction when they heard it was up for sale.
0:08:23 > 0:08:27It must certainly feel familiar being so close to that school.
0:08:31 > 0:08:32Lucy, Sylvia, lovely to meet you both.
0:08:32 > 0:08:36- Hello, Martin.- That looked like an interesting auction. A lot of stuff going on.
0:08:36 > 0:08:39Well, there was a lot going on there.
0:08:39 > 0:08:41It got quite hectic at one point.
0:08:41 > 0:08:44- So what was the budget? - The budget was £200,000!
0:08:44 > 0:08:47So it was well over.
0:08:47 > 0:08:50So why are you buying it? Who are you buying it for?
0:08:50 > 0:08:52And tell me more.
0:08:52 > 0:08:54Basically, my husband and I have bought the house,
0:08:54 > 0:08:59but Lucy and her partner are going to buy it from us once they've sold their property near us.
0:08:59 > 0:09:02So you're acting as a bridging loan, sort of?
0:09:02 > 0:09:08I'm acting as a bridging loan. A big bridging loan, yes. But I think it'll be worth it, myself.
0:09:08 > 0:09:13- So you've already got a house with your partner?- Yes. We have a shared ownership property.
0:09:13 > 0:09:17But, of course, we want to move into this area, which we couldn't do without my mum's help, really.
0:09:17 > 0:09:19Well, that's wonderful then.
0:09:19 > 0:09:22# It's a family affair
0:09:24 > 0:09:26# It's a family affair. #
0:09:29 > 0:09:36Lucy will move in with her partner David and two daughters - Bethany, aged 14, and Shannon, who's two.
0:09:36 > 0:09:40Lucy is moving back here because this is where she grew up.
0:09:40 > 0:09:47I've got Mum five minutes away and my cousin opposite, my nan in this street, my brother
0:09:47 > 0:09:52just behind and my sister just down the other end of the road here as well.
0:09:52 > 0:09:54- Right.- A family affair.
0:09:54 > 0:09:56Let's move on to the work then. What are you going to do to it?
0:09:56 > 0:10:02What we'd like to do and what we can do may be two different things really.
0:10:02 > 0:10:04- Because you burned the budget, basically.- Yes.
0:10:04 > 0:10:06We definitely need to get a new bathroom.
0:10:06 > 0:10:10We need to remove that because that's just...
0:10:10 > 0:10:11An eyesore.
0:10:11 > 0:10:15An eyesore and a hazard, especially with a two-year-old running around.
0:10:15 > 0:10:19We'd like, ideally, to replace it with another conservatory
0:10:19 > 0:10:23and of course, we'd like to re-do the kitchen as well.
0:10:23 > 0:10:30So that's three major things in my eyes, and then decorating, which shouldn't be too much of a problem.
0:10:30 > 0:10:33Having burned the budget, what have you got left to do the work?
0:10:33 > 0:10:38Well, we thought maybe £15,000 to £20,000.
0:10:38 > 0:10:41I think you were thinking maybe a bit more.
0:10:41 > 0:10:44So what about timescales for doing all the bits and pieces?
0:10:44 > 0:10:46We'd like to have it done by Christmas.
0:10:46 > 0:10:52- So four months or so.- Yeah. It might take longer because of finances.
0:10:52 > 0:10:56I go back to work in just over a week's time so,
0:10:56 > 0:11:00you know, that's going to sort of draw on the time that I'm going to be able to spend here decorating.
0:11:00 > 0:11:04- Right.- And with a little one as well, it's a bit awkward.
0:11:04 > 0:11:07But we will try. We'll do our best. We'll set ourselves a goal.
0:11:07 > 0:11:12- Congratulations. Good luck and we look forward to seeing how you get on.- Thank you very much.
0:11:12 > 0:11:13Thank you
0:11:14 > 0:11:19Well, this undoubtedly will make a lovely home for Lucy and her family.
0:11:19 > 0:11:23However, by overspending on the purchase price,
0:11:23 > 0:11:28the budgets are going to be tight and, even with the help from the extended family members,
0:11:28 > 0:11:32are they going to manage to restore this place for a reasonable amount of money?
0:11:32 > 0:11:35You can find out later in the show.
0:11:39 > 0:11:45I'm in East 17, north-east London, in Walthamstow, to give it its proper name.
0:11:45 > 0:11:49It's the place where four likely lads came from who stormed the pop
0:11:49 > 0:11:53charts with hits like House Of Love and Stay Another Day.
0:11:53 > 0:11:55Some of my favourites, actually!
0:11:55 > 0:11:59But the big question is, will today's property be a chart topper
0:11:59 > 0:12:02or will it not even make it into the top 50?
0:12:02 > 0:12:04Come with me and find out.
0:12:04 > 0:12:08# Everybody Everybody in the house of love... #
0:12:10 > 0:12:18Not only did that famous boy band call themselves East 17, they even named their debut album Walthamstow
0:12:18 > 0:12:24after their hometown, but whether the house up for auction is a house of love or not is another question.
0:12:24 > 0:12:30However, it is conveniently situated a short walk from the busy Lea Bridge Road,
0:12:30 > 0:12:35which stretches through the heart of north-east London and is the centre of a vibrant Asian community.
0:12:38 > 0:12:43So time to see if there are any bargains to be had in this part of London. Well, this is lot number 64.
0:12:43 > 0:12:47Now, it's a three-bedroom end of terrace. It's on a large plot.
0:12:47 > 0:12:51It's got a guide price of £180,000.
0:12:51 > 0:12:55It doesn't look like an obvious bargain from here, does it?
0:12:55 > 0:13:01This 1920s end terrace has obviously been lying empty for a while
0:13:01 > 0:13:05and is, to say the least, in a right old state.
0:13:05 > 0:13:08At the back is a pretty big garden which needs clearing.
0:13:08 > 0:13:12To the side is a generous plot, with what appears to be a wooden garage.
0:13:12 > 0:13:18It's all dilapidated and overgrown and there are signs of more serious issues.
0:13:21 > 0:13:24That's unbelievable. I need to get inside and investigate further.
0:13:27 > 0:13:30As cracks go, that's a cracker!
0:13:30 > 0:13:34There could be numerous reasons for why it's so bad.
0:13:34 > 0:13:37Subsidence, structural faults or because there are some
0:13:37 > 0:13:42large trees in that back garden - and those usually mean large roots.
0:13:42 > 0:13:46Do you know what? This house is already looking in a bit of a sorry old state.
0:13:46 > 0:13:52It's all overgrown, you have metal on the windows, cracked glass up there. Let's have a look inside.
0:13:56 > 0:14:00Eugh! Do you know what?
0:14:00 > 0:14:03I am not going in there.
0:14:03 > 0:14:08There's rat droppings on the floor, broken glass... I think it is a bit of a health hazard.
0:14:08 > 0:14:13In fact, I don't think anybody's been in there for a very long time.
0:14:14 > 0:14:18It's just too unsavoury to have a proper look around.
0:14:18 > 0:14:23But I can see from here that the house will need to be completely gutted.
0:14:23 > 0:14:26Well, let's talk about what we've got here.
0:14:26 > 0:14:29If you can see past this old wreck that it is at the moment, well, like
0:14:29 > 0:14:34I said, it's a three-bedroom, end of terrace house on a sizable plot.
0:14:34 > 0:14:37And what I do know is that planning permission has been submitted
0:14:37 > 0:14:42to demolish this house to build two new three-bedroomed properties.
0:14:42 > 0:14:46Notice I said "submitted" - not granted.
0:14:46 > 0:14:52That permission is crucial before any building work can start here,
0:14:52 > 0:14:55and it looks as though it could be a lot to take on.
0:14:55 > 0:14:58Whether it's a rebuild or renovation job,
0:14:58 > 0:15:02it will take a huge cash injection to get this place habitable again.
0:15:05 > 0:15:11But as the house is on an end terrace site, there are various options for development.
0:15:11 > 0:15:14A local estate agent gave us the lowdown.
0:15:17 > 0:15:20You've got a plot that you could knock the property down,
0:15:20 > 0:15:24rebuild something with the right kind of permission,
0:15:24 > 0:15:27convert it into flats or just make it one big house.
0:15:29 > 0:15:35Despite appearances, this place does have a lot of potential, but how much would each of the options cost?
0:15:39 > 0:15:43Remember, the guide price at auction was £180,000-plus.
0:15:43 > 0:15:47If you were wanting to build a two-bed and three-bed flat by knocking it down,
0:15:47 > 0:15:51you're probably looking about the £180,000 mark you'd need.
0:15:51 > 0:15:54To extend this property to make it into a four-bedroomed family home,
0:15:54 > 0:15:57I think you would need probably around £60,000.
0:16:00 > 0:16:05So whoever bought this property better have plenty more cash to play with, on top of the purchase price,
0:16:05 > 0:16:11but with four-bed houses around here selling for around £300,000, there is definitely money to be made.
0:16:11 > 0:16:13What about the rental market?
0:16:15 > 0:16:17If this was extended to a four-bedroom family home,
0:16:17 > 0:16:20you would be looking at £1,400 per calendar month.
0:16:20 > 0:16:24New-build two and three-bedroom flats, a two-bedroom would probably
0:16:24 > 0:16:28achieve about £750 a month and a three-bed flat, probably as high as £900.
0:16:28 > 0:16:31With this house, you have a few options.
0:16:31 > 0:16:33You could either knock it down and rebuild,
0:16:33 > 0:16:38or you could add to what's already here by putting on a big extension.
0:16:38 > 0:16:44But the obvious aim is to make the maximum money from the minimum outlay.
0:16:44 > 0:16:47Is this a cracking opportunity for somebody?
0:16:47 > 0:16:49Let's go to auction and find out.
0:16:51 > 0:16:58Three-bed house, got the plot next door, start at 200, not going to go below. Do I have 200 anywhere?
0:16:58 > 0:17:03£200,000 on my right. Anyone else?
0:17:03 > 0:17:09210, with you. 215, 215. 220.
0:17:09 > 0:17:10220, at the back.
0:17:10 > 0:17:12Just a couple of bids and that's it.
0:17:12 > 0:17:16215, on my right. 220, anywhere?
0:17:16 > 0:17:18220.
0:17:18 > 0:17:20225. 230.
0:17:20 > 0:17:22235.
0:17:22 > 0:17:29235. 240. 245. 245? 250?
0:17:32 > 0:17:36250, with the lady. 251, sir.
0:17:36 > 0:17:38252.
0:17:38 > 0:17:41252, madam?
0:17:41 > 0:17:44252? If not, 251 down here.
0:17:44 > 0:17:48Anyone else at £251,000?
0:17:48 > 0:17:51First time. Second time.
0:17:51 > 0:17:53Third and last time. Are you all done?
0:17:53 > 0:17:57Sold, 251. Well bid, sir.
0:18:00 > 0:18:04That top bid of £251,000 came from Moses,
0:18:04 > 0:18:09originally from Nigeria, who's been living in the UK since 1982.
0:18:09 > 0:18:13Moses has run his own property consultancy business
0:18:13 > 0:18:18for over ten years, and was bidding on behalf of one his clients.
0:18:18 > 0:18:21Moses will be managing this development too.
0:18:21 > 0:18:25So I met him back at the house to hear about the plans.
0:18:26 > 0:18:30Moses, congratulations. Thank you very much for coming along today.
0:18:30 > 0:18:33- Thank you very much.- This is quite an interesting story for me.- OK.
0:18:33 > 0:18:36Because the guide price was £180,000.
0:18:36 > 0:18:39- The bidding started at £200,000 in the auction room.- Yeah.
0:18:39 > 0:18:44Surely that would have put you off and changed the story somewhat?
0:18:44 > 0:18:49That would have put me off, but to have somebody behind me who
0:18:49 > 0:18:53says, "Moses, you are to make sure you get something today."
0:18:53 > 0:18:55- Who said that?- My client.
0:18:55 > 0:18:57- Was your client with you on auction day?- He wasn't.
0:18:57 > 0:18:59He was all the way in Nigeria.
0:18:59 > 0:19:06I am quite intrigued as to why you went over the stamp duty threshold of £250,000.
0:19:06 > 0:19:12You've now had to pay an extra 3% on top of that because you broke the barrier by £1,000.
0:19:12 > 0:19:15- Were you aware of that on the day? - I was aware of it.
0:19:15 > 0:19:18Because of the pressure...
0:19:18 > 0:19:20Because if
0:19:20 > 0:19:24I didn't go another £1,000 over, then I would lose out completely.
0:19:24 > 0:19:28And that last bid of just £1,000 more meant that Moses
0:19:28 > 0:19:33suddenly crossed from the 1% to the 3% stamp duty band.
0:19:33 > 0:19:37So instead of paying £2,500 at the 1% level,
0:19:37 > 0:19:43Moses' client had to fork out around £7,500 in stamp duty.
0:19:43 > 0:19:46That extra 5K will eat into any profit.
0:19:46 > 0:19:50What are you going to do to turn this house around?
0:19:50 > 0:19:52What I intend doing
0:19:52 > 0:19:56is to extend the house
0:19:56 > 0:19:59on the side where the garage is right now.
0:19:59 > 0:20:01Extend that side,
0:20:01 > 0:20:04pull down the cracked partition there.
0:20:04 > 0:20:09Extend it at the back as well, and then build a three-bedroom flat
0:20:09 > 0:20:13downstairs and a three-bedroom large flat upstairs as well.
0:20:14 > 0:20:18Converting the current property into two flats and extending it
0:20:18 > 0:20:21would certainly cost less than demolishing and rebuilding.
0:20:21 > 0:20:25What is his client's budget to create these two separate flats?
0:20:28 > 0:20:32I am anticipating between £75-80,000.
0:20:32 > 0:20:36Moses, how long is it going to take you to complete this project?
0:20:36 > 0:20:39We are hoping to finish in three to four months' time.
0:20:39 > 0:20:41Really?!
0:20:44 > 0:20:46Hmm. Seems rather optimistic to me.
0:20:46 > 0:20:51There is a huge amount of tidying up to do before we can even start,
0:20:51 > 0:20:56and don't forget that Moses will need planning permission for the flat conversion and the extension.
0:20:56 > 0:21:00So, Moses, where are you at the moment in the planning stage?
0:21:00 > 0:21:06We are hoping that within the next six to eight weeks we'll hear the result.
0:21:06 > 0:21:09So you've got to sit tight for six to eight weeks
0:21:09 > 0:21:12until you hear whether they're going to go with your plans?
0:21:12 > 0:21:16What my architect said was that work can start straightaway.
0:21:16 > 0:21:19- That's what he said to me. - So you're confident that you can start work straightaway?
0:21:19 > 0:21:22That's what my architect said, and I hold his word for it.
0:21:24 > 0:21:30Moses is taking a calculated risk here and putting a lot of faith in his architect's word.
0:21:30 > 0:21:33If planning permission is rejected after work has started,
0:21:33 > 0:21:38it could bring the whole development to a halt, and any renovations might have to be undone.
0:21:38 > 0:21:41# Cos I got to have faith
0:21:41 > 0:21:44# I got to have faith, faith, faith! #
0:21:44 > 0:21:46Moses is confident that the trees in the garden
0:21:46 > 0:21:53are the root cause of that crack and that he will be able to sort it out.
0:21:53 > 0:21:56Moses, thank you so much for coming along today. Good luck.
0:21:56 > 0:21:58Thank you very much, thank you.
0:21:58 > 0:22:04Moses obviously has a lot of faith, and he is going to need it.
0:22:04 > 0:22:06He paid over the stamp duty, he hasn't got any planning
0:22:06 > 0:22:11permission, his budget is tight, his timescale even tighter, and...
0:22:11 > 0:22:13there's a whacking great big crack in the side!
0:22:13 > 0:22:18I'm wondering, in four months, what will be standing here?
0:22:18 > 0:22:21You can find out later on in the programme.
0:22:22 > 0:22:27Coming up, location is king in Cornwall.
0:22:27 > 0:22:32It really is an awe-inspiring spot.
0:22:34 > 0:22:36In East London, we finally get a look
0:22:36 > 0:22:42inside this derelict house and discover that Moses has totally changed his plans.
0:22:44 > 0:22:48But first, how did things go at the former school caretaker's house?
0:22:48 > 0:22:52Oh my word, it was a complete tip. It was terrible.
0:22:59 > 0:23:03We're back in Crayford near Dartford, where teacher Sylvia
0:23:03 > 0:23:07had bought this three-bed former school caretaker's house.
0:23:10 > 0:23:17She ended up bidding £21,000 over her limit of £200,000, and the house isn't even for her.
0:23:17 > 0:23:20It's for her daughter, maths teacher Lucy.
0:23:20 > 0:23:24My husband and I have bought the house, but then Lucy and her partner are going to
0:23:24 > 0:23:27buy it from us once they have sold their property near us.
0:23:27 > 0:23:30So you're acting as a bridging loan, sort of?
0:23:30 > 0:23:32I'm acting as a bridging loan. A big bridging loan.
0:23:36 > 0:23:38Despite going well above their budget at auction,
0:23:38 > 0:23:45the family thought they also needed another £15-20,000 to make the house ready to move into.
0:23:45 > 0:23:51But as Lucy still had to sell her current home, there was time to play with.
0:23:54 > 0:23:59Eight months later, it looks like that time was well spent.
0:24:01 > 0:24:04Outside, there's a new drive and they've really
0:24:04 > 0:24:09cleaned up the front of the house and done some maintenance work on the roof.
0:24:11 > 0:24:17Inside, a new kitchen has been installed with modern lightening and fittings.
0:24:23 > 0:24:28The old, rather dangerous conservatory has been removed and new French doors leading
0:24:28 > 0:24:31straight out on to the garden are now in place.
0:24:31 > 0:24:34The whole house feels so much brighter and fresher.
0:24:38 > 0:24:40It was a complete tip. It was terrible.
0:24:40 > 0:24:45The garden was completely overgrown with brambles, the house was dirty.
0:24:45 > 0:24:53There was newspaper stapled to the floors, so we actually had to take the staples out of the floor as well.
0:24:53 > 0:24:56Ouch! Brambles AND staples.
0:24:56 > 0:24:59Well, they do say there is no gain without pain.
0:25:04 > 0:25:08Upstairs, and two of the bedrooms have been specially decorated for Lucy's daughters.
0:25:08 > 0:25:14All the rooms have brand-new panel doors and double glazing.
0:25:14 > 0:25:18# Pretty in pink
0:25:18 > 0:25:25# Isn't she pretty in pink...? #
0:25:25 > 0:25:30The old bathroom and separate toilet have been knocked into one large room.
0:25:30 > 0:25:37It's still not finished, but first impressions are good, with a new bathroom suite and tasteful tiling.
0:25:41 > 0:25:45As well as the cosmetic decor, the family have replaced the
0:25:45 > 0:25:50central heating, electrics, windows and exterior doors.
0:25:50 > 0:25:53And they've tackled an even bigger task.
0:25:56 > 0:26:01The driveway was the main thing that that had to be done, to actually get access to the property cos it was
0:26:01 > 0:26:07just overgrown and it was a very small gap to get through. So that was the main thing.
0:26:09 > 0:26:13They've done a great job of tidying it up.
0:26:13 > 0:26:18Off-street parking like this is a real plus point for any property.
0:26:18 > 0:26:21They've really tackled the place head on,
0:26:21 > 0:26:26and moving back to Lucy's family neighbourhood has had advantages.
0:26:27 > 0:26:30Family members have all chipped in and all helped.
0:26:30 > 0:26:33The bathroom, that was ripped out.
0:26:33 > 0:26:36The wall was knocked down, my brother knocked the wall down for us
0:26:36 > 0:26:40and my brother-in-law created the new partition wall. So that was done.
0:26:40 > 0:26:44My dad's been working very hard to try and get this bathroom finished,
0:26:44 > 0:26:50but he works a tough time schedule so it's a bit difficult.
0:26:50 > 0:26:55Meanwhile, her partner David was outside taking care of the garden.
0:26:56 > 0:26:58The garden was in a complete mess.
0:26:58 > 0:27:00It was overgrown everywhere.
0:27:00 > 0:27:05There was tree stumps. There was a patio area here that we ripped up.
0:27:05 > 0:27:12There was all concrete down there, concrete over here, and it was just, it was in a complete mess, really.
0:27:12 > 0:27:19Ripped it all up and had a new lawn laid and dug up, and it looks lovely.
0:27:19 > 0:27:24I'm very proud of everyone that's actually had a part of this,
0:27:24 > 0:27:27the family members that have all helped.
0:27:27 > 0:27:31I've had a wonderful time actually learning new skills myself.
0:27:31 > 0:27:35I'd never wallpapered before now, and I wallpapered four rooms.
0:27:35 > 0:27:41So with all hands on deck, did they manage to keep to their schedule?
0:27:42 > 0:27:45We thought we were going to be in in about four months, we thought we'd
0:27:45 > 0:27:49have it all finished, but that was way out.
0:27:49 > 0:27:53We're now on about eight months, I think, and it's nearly there.
0:27:53 > 0:27:58We've not got money to just get the builders in and do everything, so a lot of it we've had to do ourselves.
0:27:58 > 0:28:00And it just does take time.
0:28:03 > 0:28:06As well as helping Lucy with the original house purchase,
0:28:06 > 0:28:10Mum was also pitching in on the renovation costs,
0:28:10 > 0:28:14which they reckoned would be about £15-20,000.
0:28:14 > 0:28:17So, how did they fair with that all-important budget?
0:28:21 > 0:28:26I've probably helped them out with about £25,000, I expect, yeah.
0:28:26 > 0:28:29Very close to that. It's a lot of money.
0:28:32 > 0:28:38That's a total spend so far of £246,000, plus the usual fees and expenses.
0:28:38 > 0:28:42What might the property be worth now?
0:28:47 > 0:28:50We asked two local estate agents to put us in the picture.
0:28:51 > 0:28:54First impressions, very impressed.
0:28:54 > 0:28:56Very approachable home. Very clean to look at.
0:28:56 > 0:29:01The kitchen, great highlights with the down-lighting, the LED lights.
0:29:01 > 0:29:05It's in a good residential area. Popular location.
0:29:05 > 0:29:08Convenient for the school.
0:29:08 > 0:29:10And potential to extend.
0:29:12 > 0:29:16How much could the house generate as a rental?
0:29:16 > 0:29:19If we were to rent the property under the current market climate then I'd say we'd be
0:29:19 > 0:29:23looking in the region of around about £1,000 per calendar month.
0:29:23 > 0:29:26I could rent this property out at around £1,100 per calendar month.
0:29:26 > 0:29:30If they were to sell the property at the current market, keeping in
0:29:30 > 0:29:38mind their outlay of about £246,000 so far, how much would they expect?
0:29:38 > 0:29:42If you market the property under the current market climate at the moment,
0:29:42 > 0:29:45I would say the property should go on the market in the region of £280,000.
0:29:45 > 0:29:51I would suggest marketing in a price range of £280-290,000.
0:29:51 > 0:29:56A potential pre-tax profit of £44,000.
0:29:56 > 0:29:59Not bad. You were saying that yesterday, weren't you?
0:29:59 > 0:30:04We're quite pleased with that, the amount of effort that's gone into the place.
0:30:04 > 0:30:06That's right.
0:30:06 > 0:30:10- That's what we expected.- Yeah.
0:30:13 > 0:30:19I don't think they'll sell this house for a long while. It really has brought them together.
0:30:19 > 0:30:26By all their hard work, they've created a fabulous family home, so congratulations to them all.
0:30:29 > 0:30:32She went over-budget quite considerably,
0:30:32 > 0:30:37but in her determination, we've ended up with a fantastic home and I can't thank her enough.
0:30:44 > 0:30:48I'm in Cornwall, in Perranporth.
0:30:48 > 0:30:50And how about that for a beach?
0:30:50 > 0:30:58The waves of the Atlantic crashing on to the shores create one of the best surfing beaches in the UK.
0:30:58 > 0:31:01You've got dramatic cliffs in the distance, you've got sand dunes
0:31:01 > 0:31:06that are used for orienteering, it really is an awe-inspiring spot.
0:31:22 > 0:31:27As it's so beautiful, unsurprisingly in summer it's also very busy.
0:31:27 > 0:31:30People flock here for holidays and day trips to enjoy the beach
0:31:30 > 0:31:33with its sand castle building opportunities,
0:31:33 > 0:31:37the surfing and the attractions of the town centre.
0:31:41 > 0:31:44I'm here to see a two-bedroom semi-detached property,
0:31:44 > 0:31:52which had a guide price of £105,000 which, for something so close to that beautiful beach, sounds cheap.
0:31:52 > 0:31:53Let's take a look inside.
0:31:58 > 0:32:00So, nice you've got that little porch.
0:32:00 > 0:32:03It keeps the noise of the road and the wind and whatever out.
0:32:03 > 0:32:09The whole house in fact has been double glazed, which is really great and saves you quite a lot of money.
0:32:09 > 0:32:13So through into the sort of dining room/living room area, it's been knocked through.
0:32:13 > 0:32:16Nice feature fireplace. There's a good size space. I like that.
0:32:16 > 0:32:20And then pretty standard layout through into the kitchen.
0:32:20 > 0:32:25It's tired. It's dated. Perfectly serviceable though.
0:32:25 > 0:32:28Not a bad-sized space. And something I really like, very practical,
0:32:28 > 0:32:30there's a little extra loo around the corner there.
0:32:30 > 0:32:32So, a good start.
0:32:32 > 0:32:39It does look a bit shabby, but a few thousand quid would give this place a new lease of life.
0:32:39 > 0:32:45I reckon that a new kitchen and downstairs loo plus stripping that lounge floor would all work wonders.
0:32:49 > 0:32:52So, upstairs, not going to be expecting too much
0:32:52 > 0:32:55of a dramatically weird layout, however that's quite nice to see.
0:32:55 > 0:32:59You've got bathroom there with a bath in it and then this room here which is a shower room.
0:32:59 > 0:33:06It hasn't been completed, but you know what, given this is surfing country, that would be ideal.
0:33:06 > 0:33:08Come in with your wetsuit and get the sand off.
0:33:08 > 0:33:10Landing here. Then two bedrooms. First one there.
0:33:10 > 0:33:15A good-sized double. And this one here, a really nice-sized room. I love the stripped floorboards.
0:33:15 > 0:33:18All in all, the upstairs layout works really well.
0:33:18 > 0:33:24To recap, that's two good-sized bedrooms, a large lounge and diner,
0:33:24 > 0:33:28kitchen, WC and bathroom.
0:33:28 > 0:33:31All for a guide price of £105,000.
0:33:31 > 0:33:34With a bit of TLC,
0:33:34 > 0:33:39this could be a great family home or holiday let,
0:33:39 > 0:33:42as it's just a short hop from the fabulous beach.
0:33:42 > 0:33:50Well, anywhere that's this close to the beach is going to have a problem with parking,
0:33:50 > 0:33:52especially in the tourist periods of the year.
0:33:52 > 0:33:59So it's great news that this property comes with a parking space and a garage because it's double
0:33:59 > 0:34:04yellow lines outside the front, and the last thing you want is to have to struggle to find
0:34:04 > 0:34:07somewhere to park your car every time you come home.
0:34:07 > 0:34:10This property just keeps getting better.
0:34:10 > 0:34:14The good-sized garden is south facing and, with a bit of work,
0:34:14 > 0:34:19could be the perfect spot for a glass of wine after a hard day at the beach.
0:34:19 > 0:34:24So it's all going swimmingly well, but, as you might have imagined, there is a problem.
0:34:24 > 0:34:29Because the house, like many in Cornwall, is made from mundic block.
0:34:29 > 0:34:35Mundic block was made after World War II using waste materials from local mines.
0:34:35 > 0:34:40Although it can't really be seen by looking at the exterior of the house,
0:34:40 > 0:34:43I found some clues elsewhere.
0:34:43 > 0:34:47The garden wall here is made of this, what looks like a normal kind of breeze block.
0:34:47 > 0:34:51But if I get a normal breeze block and show you the difference...
0:34:53 > 0:34:55Can you see the difference in the texture?
0:34:55 > 0:34:58Basically, mundic blocks, over time, crumble.
0:34:58 > 0:35:02There's various levels of crumbling and various levels of problems with houses,
0:35:02 > 0:35:06but you need to have it checked out, and until you've got a report saying
0:35:06 > 0:35:09that the mundic block is OK, you'll not be able to get finance on the property.
0:35:09 > 0:35:14Well, there had to be a hitch, but this is still a great house
0:35:14 > 0:35:18in an excellent location and shouldn't be written off just yet.
0:35:20 > 0:35:23Let's hear more from the auctioneer who sold it.
0:35:25 > 0:35:29The potential for the property is either as a full-time home
0:35:29 > 0:35:32or someone who's going to buy it as a holiday letting venture
0:35:32 > 0:35:37and perhaps rent it out some weeks and keep other weeks for themselves.
0:35:37 > 0:35:42So how many thousands are we talking about here after renovation?
0:35:42 > 0:35:46And will that mundic affect its value?
0:35:46 > 0:35:51Once it's renovated and looking lovely, it will still have the mundic issue, and whilst on the
0:35:51 > 0:35:55face of it the house ought to make a couple of hundred thousand pounds,
0:35:55 > 0:35:57it's probably going to be nearer 150, 160.
0:35:57 > 0:36:02What about its rental potential, either for residential or holiday lets?
0:36:02 > 0:36:08If the property was rented out in a usual, short-hold tenancy market,
0:36:08 > 0:36:14you're looking at £525 per calendar month, perhaps £550 per calendar month.
0:36:14 > 0:36:18But you're in a holiday spot and, to a holiday market, you're
0:36:18 > 0:36:23probably looking at between £300 and £400 per week at the height of season.
0:36:24 > 0:36:28Well, a nice enough house and you certainly can't knock the location.
0:36:28 > 0:36:32It would make a lovely family home or a holiday home for somebody, but the big issue, of course,
0:36:32 > 0:36:38is that mundic block construction which would restrict raising finance on this place.
0:36:38 > 0:36:43Still, at £105,000 as the guide price, I'm sure somebody fell for its Cornish charms.
0:36:43 > 0:36:46Let's see who it was when it went to the auction.
0:36:49 > 0:36:54We're in Perranporth now, semi-detached, two storey house.
0:36:54 > 0:37:00So who will say to us, nice and simply, for lot 18, £120,000 in?
0:37:00 > 0:37:02110.
0:37:02 > 0:37:04100. We're away.
0:37:04 > 0:37:11Thank you. 102, 104, 106, 108.
0:37:11 > 0:37:12At 108.
0:37:12 > 0:37:15At 108,000.
0:37:15 > 0:37:21Last time, then. At 108... 110, you saw it to your right.
0:37:21 > 0:37:22110.
0:37:22 > 0:37:27At 110. We'll take 1,000 if it'll help, but 110 we have.
0:37:28 > 0:37:33At 110 for the first time. At 110 for the second time.
0:37:33 > 0:37:35At 110. Third and the last time.
0:37:35 > 0:37:38Here we go, then, at 110.
0:37:38 > 0:37:41Gentleman stood at the pillar there on the left-hand side.
0:37:46 > 0:37:52With just one bid, Sharon and Pete snapped the place up for 110 grand.
0:37:52 > 0:37:56Based in Staffordshire, Sharon is a sports development manager and Pete,
0:37:56 > 0:38:00originally from Ireland, is a roofer and works in the building trade.
0:38:03 > 0:38:10I met up with them at the house to find out why they had made the journey south to invest in Cornwall.
0:38:10 > 0:38:14- Sharon, Pete, lovely to meet you both. Congratulations.- Thank you.
0:38:14 > 0:38:16- You got yourself a lovely place in Cornwall:- We have.
0:38:16 > 0:38:20- Why did you want to buy it? - Well, we've always wanted to
0:38:20 > 0:38:22move down to Cornwall eventually, and we holiday here.
0:38:22 > 0:38:26I've always holidayed here as a child and brought Pete down here and he fell in love with it.
0:38:26 > 0:38:30- So why this particular house then? - We were looking around at properties
0:38:30 > 0:38:33and they're quite expensive down here,
0:38:33 > 0:38:37and this property was very reasonably priced, wasn't it?
0:38:37 > 0:38:42Yeah. It's a bit of a challenge with what has to be done to it, but we'll whip it into shape, I think.
0:38:43 > 0:38:48With Pete's contacts in the building trade, they'll save a packet by doing the renovation themselves.
0:38:48 > 0:38:53This house offers tremendous scope for improvement and adding value.
0:38:53 > 0:38:55So, what are their plans?
0:38:55 > 0:38:58Well, we're thinking of a new kitchen.
0:38:58 > 0:39:04Knock the wall out between the old bathroom - well, toilet - and put a proper floor and kitchen in.
0:39:04 > 0:39:07New heating system,
0:39:07 > 0:39:09decorating, back garden.
0:39:09 > 0:39:11A whole list of things, really.
0:39:11 > 0:39:13That's quite a list.
0:39:13 > 0:39:17But what about the more serious issue of the mundic block?
0:39:17 > 0:39:21Well, we know it's manageable, don't we?
0:39:21 > 0:39:25Basically, mundic, if the block gets too damp, it disintegrates.
0:39:25 > 0:39:33- And, no matter what the problem is, I reckon I can sort it out - I have the experience behind me.- Right.
0:39:33 > 0:39:38Pete sounds confident that he can keep the mundic problem at bay.
0:39:40 > 0:39:42We'll see how long it takes to get it into shape,
0:39:42 > 0:39:45and then by the time we have it in shape, it'll be next season.
0:39:45 > 0:39:48Well...Sharon's birthday coming up shortly.
0:39:48 > 0:39:51Tell me more about that!
0:39:51 > 0:39:54We always come down here for my birthday, which is in October.
0:39:54 > 0:39:58And I always book somewhere and we have a long weekend.
0:39:58 > 0:40:00And I said, "We'll have to book somewhere,"
0:40:00 > 0:40:02and Pete said, "No, no, we've got the house."
0:40:02 > 0:40:05I said, "Will it be finished by October?" And he said, "Oh, no problem."
0:40:05 > 0:40:09How many weeks away is that precisely?
0:40:09 > 0:40:11About nine, ten weeks.
0:40:11 > 0:40:15- Three of them weeks I'm away! - Yes, three of those he's away!
0:40:15 > 0:40:19# Pressure, pushing down on me... #
0:40:23 > 0:40:26Well, Pete's promise has certainly put pressure on him to get
0:40:26 > 0:40:30everything done in time for Sharon's birthday in just nine weeks' time.
0:40:30 > 0:40:32You can't keep a lady waiting, Pete!
0:40:34 > 0:40:37- Listen, good luck. Congratulations. Well done.- Thanks.
0:40:37 > 0:40:43- I look forward to seeing how you get on.- Thank you.
0:40:43 > 0:40:46Well, Sharon and Pete are making a bit of a dream come true,
0:40:46 > 0:40:50buying this place, especially for Sharon returning to her childhood Cornwall.
0:40:50 > 0:40:54If there are problems with the mundic block I'm sure Pete can sort them out.
0:40:54 > 0:40:59The big issue is, will he get the renovations done in time for her birthday?
0:40:59 > 0:41:02You can find out later in the show.
0:41:05 > 0:41:12Transforming a property from a worn out shell can be very rewarding and profitable.
0:41:12 > 0:41:15But did everything go well for our buyers today?
0:41:15 > 0:41:17Let's take a look and find out.
0:41:20 > 0:41:24We're back at this three bedroom end terrace in Walthamstow, East London.
0:41:24 > 0:41:31Property agent Moses bought it at auction for £251,000 on behalf of an overseas client.
0:41:36 > 0:41:42The house had been empty for some time and it was in such a state I didn't fancy venturing inside.
0:41:42 > 0:41:45But Moses already had plans for the site.
0:41:46 > 0:41:49What I intend doing, is to extend the house
0:41:49 > 0:41:52on the side where the garage is right now.
0:41:52 > 0:41:57Extend it at the back as well. And then build a three-bedroomed flat downstairs
0:41:57 > 0:42:00and a three-bedroom large flat upstairs as well.
0:42:06 > 0:42:10Seven months later, we've returned to see how things went.
0:42:10 > 0:42:13It looks like work is still in progress.
0:42:13 > 0:42:17Though not on two flats, but two separate houses.
0:42:20 > 0:42:26Moses decided to renovate the existing 1930s house, extending it slightly into the back garden.
0:42:28 > 0:42:32And on the adjacent plot where the garage was, he's building a new
0:42:32 > 0:42:35end-of-terrace, two-bedroomed property.
0:42:35 > 0:42:40So, Moses must have changed his mind at some point.
0:42:40 > 0:42:47We were originally applying for two separate three-bedroom flats, but when we got to the council,
0:42:47 > 0:42:53to the local authority, they told us that the process of approving flats
0:42:53 > 0:42:58is so long that we could be there for months.
0:42:58 > 0:43:03But it would be better for us to keep the existing freehold and then
0:43:03 > 0:43:07build another freehold on this side, and that would be quicker for us.
0:43:08 > 0:43:11We didn't get to see inside the house before work started,
0:43:11 > 0:43:15but it's worth the wait.
0:43:16 > 0:43:20All walls and ceilings have been replastered
0:43:20 > 0:43:24and new plumbing, heating and double glazing installed.
0:43:26 > 0:43:29But it's not all been simple.
0:43:29 > 0:43:31Moses has moved walls around, too.
0:43:34 > 0:43:38The house has got two receptions before,
0:43:38 > 0:43:42so we thought if we open it up, it would make the whole place bigger.
0:43:42 > 0:43:48So we've opened up the reception - I mean, the first and second receptions, now we have just
0:43:48 > 0:43:51an open-plan.
0:43:53 > 0:43:56I think Moses has made a good decision.
0:43:56 > 0:44:01This large reception area feels bright and modern.
0:44:01 > 0:44:06The kitchen, which is yet to be installed, will be in the rear extension.
0:44:06 > 0:44:10The three bedrooms and brand-new neutral bathroom are upstairs
0:44:10 > 0:44:14and are well proportioned with plenty of natural light.
0:44:16 > 0:44:20To the side, in place of the old garage and jungle-like garden,
0:44:20 > 0:44:24Moses ha started to build what will be the second property.
0:44:24 > 0:44:26A two-bed self-contained house.
0:44:26 > 0:44:30This will be the brand-new end terrace,
0:44:30 > 0:44:34so what are Moses' plans for the interior?
0:44:34 > 0:44:36Two bedroom upstairs,
0:44:36 > 0:44:40bathroom, toilet upstairs, kitchen downstairs.
0:44:40 > 0:44:42Spare toilet downstairs as well.
0:44:42 > 0:44:46And there will be a utility area downstairs as well.
0:44:49 > 0:44:54Moses bid £251,000 for the property at auction on behalf of his client.
0:44:58 > 0:45:03A further £85,000 has been invested in the renovation and new-build so far.
0:45:05 > 0:45:10But Moses reckons it'll be closer to £100,000 by the time it's finished.
0:45:10 > 0:45:17That's a total investment of around £351,000, plus usual fees and expenses.
0:45:19 > 0:45:22But has any value been added here?
0:45:25 > 0:45:28We asked two local estate agents to give us their opinions.
0:45:31 > 0:45:32Well, it's moved along.
0:45:32 > 0:45:35It's obviously a fair way from being finished.
0:45:35 > 0:45:38The extension at the back is a great idea.
0:45:38 > 0:45:401930s, are always a bit tight.
0:45:40 > 0:45:44That extra extension means there's a little bit more living accommodation.
0:45:44 > 0:45:47I think it was an excellent investment, especially the new-build
0:45:47 > 0:45:50where you could add a dormer and have a three-bedroomed property.
0:45:52 > 0:45:57How much would they expect each house to earn on the rental market?
0:45:59 > 0:46:04Three bedroom, if we had to put these up for rent would achieve probably about £1,200 per calendar month.
0:46:04 > 0:46:08The two bedroom I would expect to achieve between £900 and £950.
0:46:08 > 0:46:12The two bed property, per calendar month, would achieve around about the 1,000 figure.
0:46:12 > 0:46:15While the three bedroom would achieve anything from 1,200 to 1,300.
0:46:17 > 0:46:24That's a combined rental income of between 2,000 and 2,300 a month.
0:46:24 > 0:46:25A yield of around 7%.
0:46:25 > 0:46:27Sounds pretty good to me.
0:46:29 > 0:46:33That's good. We're not renting, but that's a good price.
0:46:33 > 0:46:39I mean, the house is not on the mortgage anyway.
0:46:39 > 0:46:46It was a cash buy property, so if £2,000 plus should be coming in every month, that's going to be good money.
0:46:49 > 0:46:56It certainly is. That could be an annual income of between £21,000 and £23,000.
0:46:56 > 0:47:01But Moses wants to sell the properties for his client, so how much could be made here?
0:47:02 > 0:47:08Remember, the total investment will be around 351,000, plus costs.
0:47:11 > 0:47:15I mean, this is a standard 1930s, three bed, what is now a mid-terrace property.
0:47:15 > 0:47:18Highly saleable, as long as it's finished to a descent standard.
0:47:18 > 0:47:25I would say just under the 300,000, probably £295. Two bed I'd market around 265, 275.
0:47:25 > 0:47:30The two bedroom property in this location would achieve something in the region of £245,000.
0:47:30 > 0:47:38The three bed should be considerably more at £275,000 to £285,000.
0:47:38 > 0:47:44That's a total resale value for both properties of between 520,000 and 575,000.
0:47:44 > 0:47:52That means a potential pre-tax profit of up to a whopping £224,000.
0:47:52 > 0:47:55The two prices are good for me.
0:47:55 > 0:48:00Even if we have to take the lowest of them, which is good news.
0:48:03 > 0:48:05Good news indeed.
0:48:05 > 0:48:10But he'll have to ensure he finishes off both houses to a high standard to maximise the sale price.
0:48:10 > 0:48:15Although the three-bed is almost complete, the new two-bed still has a way to go.
0:48:18 > 0:48:20We wish you good luck with that, Moses.
0:48:30 > 0:48:35Earlier we were in beautiful Perranporth, Cornwall, where roofer Pete and his partner Sharon
0:48:35 > 0:48:40had bought this two-bed semi for 110,000.
0:48:45 > 0:48:47There was a long list of jobs to be done.
0:48:47 > 0:48:53Pete had given himself a nine-week deadline to be finished in time for Sharon's birthday.
0:48:55 > 0:49:00It's a bit of a challenge, what has to be done to it, but we'll whip it into shape, I think.
0:49:00 > 0:49:03Right.
0:49:03 > 0:49:06Pete seemed pretty relaxed, and I reckoned his experience
0:49:06 > 0:49:11in the building trade made him just the chap for the task ahead.
0:49:11 > 0:49:17Now, not nine weeks, but eight-and-a-half months later, it looks like Pete's been busy,
0:49:17 > 0:49:21despite two months delay due to hurting his back.
0:49:21 > 0:49:24The lounge has a new floor and fireplace.
0:49:27 > 0:49:32And, when you step into that kitchen, you can see where Pete spent most of his energy.
0:49:33 > 0:49:36Well, as you can see, this is the kitchen area.
0:49:38 > 0:49:42We done a big knock through. There were two small windows here,
0:49:42 > 0:49:44and we took advantage of the view.
0:49:44 > 0:49:46We put a breakfast bar in.
0:49:46 > 0:49:49We did a bit of research,
0:49:49 > 0:49:54we've got a cooker and a fridge-freezer on an internet site,
0:49:54 > 0:49:56and it works pretty well, I think so.
0:50:01 > 0:50:03Gone are the old nooks and crannies.
0:50:03 > 0:50:08It's all been opened up and replaced with a fabulous spot to have breakfast.
0:50:08 > 0:50:10Just look at that view!
0:50:17 > 0:50:21Upstairs, Pete is still in the process of sprucing up the bedrooms.
0:50:21 > 0:50:26He's redecorated in bold colours and replaced the doors.
0:50:26 > 0:50:33Where that half-finished shower room was, he's put in a brand-new toilet next to the very smart new bathroom.
0:50:34 > 0:50:40The fresh layout really takes advantage of the natural light this room enjoys.
0:50:40 > 0:50:47This is the bathroom. A present from Sharon's mum and dad,
0:50:47 > 0:50:49which was very much appreciated.
0:50:49 > 0:50:54I enjoyed doing it, and I think it's turned out very well.
0:50:55 > 0:51:01But before all this impressive work could be done, Pete had to deal with some unforeseen problems.
0:51:03 > 0:51:08Every ceiling in the house was asbestos. Asbestos sheets,
0:51:08 > 0:51:10so that was a bit of a shock.
0:51:10 > 0:51:12So we obviously had to take everything out of there
0:51:12 > 0:51:16and we replaced the plasterboards and got it replastered.
0:51:16 > 0:51:18I done most of the work myself.
0:51:18 > 0:51:22I took the asbestos out and boarded the ceilings.
0:51:22 > 0:51:25I just had to get a plasterer in to replaster it, so it wasn't too bad.
0:51:28 > 0:51:32Outside, in the back garden, Pete has put in new decking
0:51:32 > 0:51:37and created a patio area, which makes the best of that steep garden slope.
0:51:43 > 0:51:46At the bottom, he's re-roofed the old garage.
0:51:50 > 0:51:52So, a huge amount of work. Well done, Pete.
0:51:52 > 0:51:55But did he have any help?
0:51:55 > 0:51:58At first, I came down with a sledgehammer,
0:51:58 > 0:52:00and Sharon came down with a sweeping brush!
0:52:02 > 0:52:07Sharon - yeah, she's been a great help.
0:52:07 > 0:52:09She's done a lot of painting,
0:52:10 > 0:52:13cleaning up the mess I'm making,
0:52:13 > 0:52:18and done a lot of work in the garden.
0:52:18 > 0:52:23So, despite all those helping hands, Pete didn't stay on schedule.
0:52:23 > 0:52:26He had promised Sharon they'd be in for a romantic weekend
0:52:26 > 0:52:30to celebrate her birthday just nine weeks after the auction.
0:52:30 > 0:52:32# Happy birthday
0:52:32 > 0:52:34# Happy birthday... #
0:52:38 > 0:52:42That didn't happen. It's taken eight months so far
0:52:42 > 0:52:45and, yeah, five or six weeks should do it.
0:52:45 > 0:52:48# Happy, happy birth... #
0:52:51 > 0:52:54Well, at least it'll be ready in time for the summer,
0:52:54 > 0:52:58but remember, this house is built from mundic block,
0:52:58 > 0:53:02which has a tendency to decay and cause structural weakness.
0:53:02 > 0:53:05So how did Pete approach this problem?
0:53:08 > 0:53:12When I started knocking walls I found maybe half a dozen soft blocks.
0:53:12 > 0:53:17Replaced what I found, and if there is another problem,
0:53:17 > 0:53:19I'll tackle that when I come to it.
0:53:19 > 0:53:22But I'm not overly worried about it.
0:53:30 > 0:53:34Treating the mundic and asbestos as well as spending extra on the kitchen
0:53:34 > 0:53:40stretched Pete and Sharon's original budget of 15,000 to 20,000 to about £25,000.
0:53:40 > 0:53:47So, added to the 110 they paid for the property, they've spent a total of £135,000.
0:53:52 > 0:53:56I reckon they've really rejuvenated this semi,
0:53:56 > 0:53:59but what do two local property experts think?
0:54:00 > 0:54:02The fella's three-quarters of the way through
0:54:02 > 0:54:04turning it into a very nice home.
0:54:04 > 0:54:05He's relayed the floors.
0:54:05 > 0:54:08The property has been re-skimmed, the kitchen and bathroom
0:54:08 > 0:54:10have been refitted both to a very high standard.
0:54:12 > 0:54:16How much could the couple expect if they rented it out?
0:54:18 > 0:54:22If this property were rented, it would certainly make 650 to 675 per calendar month.
0:54:22 > 0:54:26When the house is fully finished, the rental value
0:54:26 > 0:54:31on a per-calendar-month basis would be close on £600.
0:54:31 > 0:54:37I was thinking around £500, but 600, 675, very good.
0:54:38 > 0:54:40But I won't be renting. I don't think so.
0:54:40 > 0:54:42I would break my heart to rent it.
0:54:42 > 0:54:48And with this stunning location so close to the beach and golf course,
0:54:48 > 0:54:51this property has the potential to be a lucrative holiday let.
0:54:51 > 0:54:57If you were letting this over the summer period then you could certainly be looking at £450 a week.
0:54:57 > 0:55:00During the peak weeks
0:55:00 > 0:55:07you could probably expect to get £600, maybe even £700 per week.
0:55:07 > 0:55:13That doesn't surprise me, but interesting. Very interesting.
0:55:16 > 0:55:19How much could expect if they sold it, bearing in mind
0:55:19 > 0:55:23their total spend of £135,000 plus the usual fees and expenses?
0:55:26 > 0:55:29Had the property been mundic-free,
0:55:29 > 0:55:36it would be on the market at a figure - quite reasonably - just over £200,000.
0:55:36 > 0:55:42Because it does have a mundic B classification, which affects the mortgageability,
0:55:42 > 0:55:49its value is probably nearer £150,000 once all the odd jobs have been finished.
0:55:49 > 0:55:53The property now has a value in the region of £145,000,
0:55:53 > 0:55:57maybe edging up to £150,000 as the market continues to improve.
0:55:57 > 0:56:00I thought it would be around, yeah, 140.
0:56:00 > 0:56:07But I'm not too pushed about it because I didn't do it for resale value.
0:56:07 > 0:56:08I done it as a home.
0:56:08 > 0:56:13So...it's not that it doesn't interest me. It does interest me, but...
0:56:13 > 0:56:15I won't be selling it anyhow.
0:56:18 > 0:56:20Quite right, too.
0:56:24 > 0:56:31I bet Pete and Sharon will have many fantastic summers down here in gorgeous Cornwall.
0:56:31 > 0:56:37And once it's finished, in six weeks' time, it will be the hub of their fabulous new life.
0:56:45 > 0:56:48Well, whether you're a seasoned professional or a property novice,
0:56:48 > 0:56:52there are always lessons to be learned about buying property.
0:56:52 > 0:56:55So, join us next time for some more auction action.
0:56:55 > 0:56:57- See you then.- Goodbye.- Goodbye.
0:56:59 > 0:57:03Subtitles by Red Bee Media Ltd
0:57:03 > 0:57:06E-mail subtitling@bbc.co.uk