0:00:02 > 0:00:03Welcome to Homes Under The Hammer.
0:00:03 > 0:00:07Both of us have been dealing in property for many years.
0:00:07 > 0:00:09We've witnessed the fluctuations in the market.
0:00:09 > 0:00:12But through it all we've been convinced of one thing,
0:00:12 > 0:00:15you can get really interesting property at auctions.
0:00:40 > 0:00:44We've always been fascinated buying under the hammer.
0:00:44 > 0:00:48The speed, the excitement and the fact that you do actually end up with a property.
0:00:48 > 0:00:49Oh, it's all really exciting!
0:00:49 > 0:00:53Let's see what got our buyers hot under the collar on today's show.
0:00:54 > 0:00:58In Wiltshire, there's a detached house which needs a good scrub.
0:00:58 > 0:01:03Look at the state of that! I don't think I'd like to fry my eggs on there, put it that way.
0:01:04 > 0:01:08A regenerated area of Salford could generate cash for this three-bedder.
0:01:08 > 0:01:13Lick of paint, some wallpaper, new carpets and you could rent this place out like that!
0:01:14 > 0:01:19In Kent, we revisit a property I first saw in October 2008.
0:01:19 > 0:01:22I could spend hours wandering around here.
0:01:22 > 0:01:24It's just so special.
0:01:25 > 0:01:27All these properties have been sold at auction
0:01:27 > 0:01:32and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:32 > 0:01:34You've bought it, sir.
0:01:36 > 0:01:40This is the village of Staverton in Wiltshire.
0:01:40 > 0:01:45It lies three miles north of Trowbridge and is close to Bath.
0:01:45 > 0:01:49I'm here to see this chalet-style, three-bedroom property.
0:01:49 > 0:01:53It went to auction with a guide of £200,000. First impressions...
0:01:53 > 0:01:59there's plenty of parking to the front, as you can see, but this property looks pretty run down.
0:01:59 > 0:02:02The guttering's hanging off, there's no down pipes
0:02:02 > 0:02:06and that will cause all sorts of damp problems if it's not sorted.
0:02:06 > 0:02:10So let's hope the inside is in a better state than the outside.
0:02:10 > 0:02:14There's also a worrying crack in the front wall, so I would advise
0:02:14 > 0:02:16getting a survey done here.
0:02:18 > 0:02:21Actually, it's not bad inside.
0:02:21 > 0:02:27Yes, it's incredibly dated, but what I love about these style of properties is the space.
0:02:27 > 0:02:29Look at this! You've got a really big hallway.
0:02:29 > 0:02:34This is probably original parquet floor here, so it could look quite nice once it's been sanded.
0:02:34 > 0:02:39And the kitchen, again, you've got a really good size, a cracking view of that huge front garden.
0:02:39 > 0:02:42But this kitchen, you know, it needs ripping out.
0:02:42 > 0:02:49It was probably fantastic in its time, but it's just incredibly old-fashioned now. And the cooker...
0:02:49 > 0:02:50Look at the state of that!
0:02:50 > 0:02:52Don't think I'd like to fry my eggs on there.
0:02:52 > 0:02:55But this kitchen has just got too many doors.
0:02:55 > 0:02:59A big sliding door there, one to the larder, one to the sun room.
0:02:59 > 0:03:01They just take up too much wall space.
0:03:01 > 0:03:04I think this house needs a bit of a re-juggle.
0:03:06 > 0:03:10The dining area is quite dark, due to all the pine cladding
0:03:10 > 0:03:12and this leads into a sun room.
0:03:12 > 0:03:18There's a rather odd store off the hall, which I suppose could become a study.
0:03:18 > 0:03:25This handy downstairs loo is a bonus, but there's an awful lot of work to be done here.
0:03:25 > 0:03:28The windows are single-glazed, metal Crittall-style,
0:03:28 > 0:03:32so double glazing would be advisable.
0:03:32 > 0:03:33But it's not just the windows.
0:03:33 > 0:03:36More modernisation is needed elsewhere, too.
0:03:36 > 0:03:38This is the main reception room.
0:03:38 > 0:03:44You may have noticed, there are no radiators in this house at all, just these old vents.
0:03:44 > 0:03:46This is a hot-air heating system
0:03:46 > 0:03:48and it means the main boiler
0:03:48 > 0:03:49heats the air then pumps it
0:03:49 > 0:03:51around the house to keep it nice and warm.
0:03:51 > 0:03:55Old systems like these, they can be dusty and dry the air out,
0:03:55 > 0:03:57so not great for allergy sufferers.
0:03:57 > 0:04:01Any big part of the budget for this house I think should be spent
0:04:01 > 0:04:05on either replacing this system with gas central heating or updating it.
0:04:06 > 0:04:10Being a chalet bungalow, the accommodation continues on the first floor.
0:04:10 > 0:04:13There are two double bedrooms, both with built-in wardrobes,
0:04:13 > 0:04:16and a smaller third bedroom, which is a single.
0:04:16 > 0:04:19And there's a bathroom with a corner bath.
0:04:22 > 0:04:29This property sits in almost a quarter of an acre site, which I think is fantastic.
0:04:29 > 0:04:32So there is plenty of potential to extend out here.
0:04:32 > 0:04:39You might not even need planning permission to do so because regulations changed back in 2008
0:04:39 > 0:04:44and now you can extend a dwelling by four metres to the rear, that's if it's single storey,
0:04:44 > 0:04:49or three metres if it's double storey, and that's without waiting for consent.
0:04:49 > 0:04:54It definitely saves time and certainly cuts back on all that red tape.
0:04:54 > 0:04:58Of course, the most obvious place to extend would be at the front
0:04:58 > 0:05:00because that's where most of the acreage lies,
0:05:00 > 0:05:04but that's a little more tricky and time-consuming,
0:05:04 > 0:05:09because any extension, other than a simple porch, still requires planning permission.
0:05:09 > 0:05:13I asked a local estate agent to come and look around the place
0:05:13 > 0:05:16and give his thoughts on this spacious bungalow.
0:05:16 > 0:05:18Is it a good buy?
0:05:20 > 0:05:23I like the property and it has a lot of potential,
0:05:23 > 0:05:26certainly for a buyer that wants to come and put their own mark on it.
0:05:26 > 0:05:29We're looking at a complete schedule of works,
0:05:29 > 0:05:33new kitchen, new bathroom, decoration, probably a new central heating system.
0:05:33 > 0:05:37Possibly go into the roof a little bit more.
0:05:37 > 0:05:40Would this chalet bungalow that went to auction
0:05:40 > 0:05:43at a guide price of £200,000 appeal to buy-to-let investors?
0:05:43 > 0:05:47What sort of rental could be achieved here?
0:05:47 > 0:05:53Properties like this are in demand in the rental market and if it was in good decorative order,
0:05:53 > 0:05:57I think something like this would get £750-£800 per calendar month.
0:05:57 > 0:06:01What's the potential resale value after it's had a thorough makeover?
0:06:01 > 0:06:06Once renovated, I think a house like this would
0:06:06 > 0:06:10probably achieve on the open market £250,000-£270,000.
0:06:13 > 0:06:18Let's face it, this place needs gutting and a total overhaul and,
0:06:18 > 0:06:22with the state it's in, it's easy to forget the major plus point -
0:06:22 > 0:06:26we're in a desirable location on the edge of a pleasant village
0:06:26 > 0:06:30and, as always, it's location that sells a property.
0:06:30 > 0:06:35So remember the rules, buy in a popular spot and you'll always be able to sell.
0:06:35 > 0:06:39Let's find out who bid and bought this one when we head to auction.
0:06:43 > 0:06:47OK, lot number four then. Where are you going to start me?
0:06:47 > 0:06:49200, or somewhere near? 180 then if you like.
0:06:49 > 0:06:53You start me and we'll get on. At £180,000 to put you in.
0:06:53 > 0:06:57160? OK, we'll start the show at £160,000 and selling lot four.
0:06:57 > 0:06:59£160,000 are bid. We're going five.
0:06:59 > 0:07:02It's at 165. 170 may I say?
0:07:02 > 0:07:05At £165,000. 170. At 170.
0:07:05 > 0:07:09We'll go in twos now if you like. At £170,000. Two anyone? At 172.
0:07:09 > 0:07:13Four may I say? At 172,000. Against you on the far right at 172,000.
0:07:13 > 0:07:16Four anyone? At 172,000.
0:07:16 > 0:07:23174, OK. 176. 178 to you. At 178.
0:07:23 > 0:07:28179, OK. 179. 180. 180 I've got, OK.
0:07:28 > 0:07:33It's on the left-hand side, on the wall at £180,000. Shall I take one?
0:07:33 > 0:07:35At £180,000 on the left then.
0:07:35 > 0:07:40It's going to be sold and no mistake at £180,000 then for the first time.
0:07:40 > 0:07:44Anybody else for one? £180,000 then for the second time.
0:07:44 > 0:07:45At 180, third and last time.
0:07:45 > 0:07:51Have you done? The number is 21, OK. Just your age.
0:07:51 > 0:07:57So the Staverton bungalow was finally sold for £180,000, but not to the man bidding.
0:07:57 > 0:08:01It went to his friend, local businessman Andrew, who runs an employment agency.
0:08:01 > 0:08:05I met up with Andrew back at his new property to hear about his plans
0:08:05 > 0:08:09and the reason for keeping such a low profile at the auction.
0:08:09 > 0:08:12So, Andrew, I didn't spot you at the auction.
0:08:12 > 0:08:13You were tucked away, weren't you?
0:08:13 > 0:08:15I had a friend of mine bid for me.
0:08:15 > 0:08:18I felt it was better if I didn't do any bidding.
0:08:18 > 0:08:20So why did you decide to go undercover?
0:08:20 > 0:08:22Because we own all the land around here
0:08:22 > 0:08:26and I felt I was the only one who would actually really want this property.
0:08:26 > 0:08:31If you are possibly the only person who wants it, maybe it would have gone for more than I wanted.
0:08:31 > 0:08:33So you own all of the land surrounding here?
0:08:33 > 0:08:39On two sides, yeah. We own the house that side and up to the boundary down there.
0:08:39 > 0:08:42Obviously, that's why you wanted this house!
0:08:42 > 0:08:44Absolutely, it's a chunk out of the corner.
0:08:44 > 0:08:52It's not the final piece of the puzzle, but it certainly makes it a more acceptable development shape.
0:08:52 > 0:08:55- So you bought this because you wanted the land that it sits on?- Yes.
0:08:55 > 0:09:00We were never going to get a chance to maximise the value of the land we've got around it.
0:09:00 > 0:09:05Without this, it would have been a lot less valuable.
0:09:05 > 0:09:08So what is your grand plan for this whole development?
0:09:08 > 0:09:12I would think eventually we'll end up knocking this down
0:09:12 > 0:09:15and building maybe a terrace of houses.
0:09:15 > 0:09:20Converting the big house to the left of this into three or four town houses
0:09:20 > 0:09:24and continuing the development on through. So this will probably be knocked down eventually.
0:09:24 > 0:09:27Obviously, in the first instance, we will let it out.
0:09:27 > 0:09:34So a short and a long-term plan for the bungalow that Andrew paid £180,000 for.
0:09:34 > 0:09:37Initially, he will look for tenants and his ambitious redevelopment
0:09:37 > 0:09:39will depend on getting planning permission.
0:09:39 > 0:09:42There's a lot of development going on in the area
0:09:42 > 0:09:44and he's spotted an opportunity on his own doorstep.
0:09:44 > 0:09:49But right on the bungalow's doorstep, he'll find one of this site's main advantages.
0:09:51 > 0:09:56- What I think is incredible is the huge frontage you have to this house.- Yes.
0:09:56 > 0:10:00I mean, that is amazing, isn't it? You come down that big, long driveway.
0:10:00 > 0:10:03Yeah, it's the same frontage next door, so if it was a terrace,
0:10:03 > 0:10:05they would have a decent front garden.
0:10:05 > 0:10:09And possibly a decent back garden with somewhere to park and pull off the road.
0:10:09 > 0:10:13It could work well with the Highways Agency and the planners. We just have to see.
0:10:13 > 0:10:17Now I have to say, the house next door is a beautiful house.
0:10:17 > 0:10:21- What are you currently doing with that at the moment? - It's a house of multiple occupation.
0:10:21 > 0:10:26We have an employment agency and when we started recruiting in Poland,
0:10:26 > 0:10:28the workers that came over had to have somewhere to live.
0:10:28 > 0:10:32So we bought that house and they live there.
0:10:32 > 0:10:34So it's a licensed house of multiple occupation.
0:10:34 > 0:10:40Andrew's short-term plan for the bungalow is not to use it as a house of multiple occupation,
0:10:40 > 0:10:43but more as a conventional letting property.
0:10:43 > 0:10:48But before it will appeal to any tenants, he's going to have to do some work on it.
0:10:48 > 0:10:52- So, in the short-term, you're planning on just letting this out? - Yeah.
0:10:52 > 0:10:55If we can get it fit for people to live in, we will let it out, yeah.
0:10:55 > 0:10:59- Did you view this house prior to the auction?- No! No, no.
0:10:59 > 0:11:01- You'd never seen inside?- No, never.
0:11:01 > 0:11:05As a part of the puzzle, it didn't matter what it looked like.
0:11:05 > 0:11:10I knew people were living in it, so it couldn't actually be that bad.
0:11:10 > 0:11:14But you're going to have to spend a bit of money on this to get it fit for people to live in.
0:11:14 > 0:11:17It's got a way to go before it's acceptable, really.
0:11:17 > 0:11:20Yeah, we always knew that, but we paid the right price for it
0:11:20 > 0:11:24at auction, I think, so it is built into the budget, you know.
0:11:24 > 0:11:29£10,000, £15,000, we'd have this in a perfectly habitable state.
0:11:29 > 0:11:32So how soon would you like to start work on this house so you can rent it out?
0:11:32 > 0:11:38We'll start soon. We'll have people in here stripping all the wallpaper and working quickly.
0:11:38 > 0:11:42They'll be skips here by the beginning of next week.
0:11:42 > 0:11:44So it sounds like it's full steam ahead here,
0:11:44 > 0:11:48but the bungalow has got a stay of execution before it's demolished.
0:11:48 > 0:11:53Of course, that will only happen if Andrew's successful with his planning application
0:11:53 > 0:11:56and redeveloping the site is a big project.
0:11:58 > 0:12:02Do you feel that you have the skills and the knowledge
0:12:02 > 0:12:05to go ahead and build houses on this site?
0:12:05 > 0:12:09I have the skills and the knowledge to ask other people.
0:12:09 > 0:12:13That's about it. That's where my skills and my knowledge run to.
0:12:13 > 0:12:16We'll get planning permission. You have to leave something in it
0:12:16 > 0:12:21for someone else, obviously, but we want to get as maximum a development in here as we can.
0:12:21 > 0:12:26We'll get the planning permission, then someone with the funds and the skills will carry on.
0:12:26 > 0:12:30- You certainly have got a long road ahead.- Yeah, bumpy one, too, I should think.
0:12:30 > 0:12:33- But an exciting one.- Absolutely. Interesting.- Good luck with this.
0:12:33 > 0:12:38- It's been great meeting you today. - And you.- Thank you very much indeed. - Thank you very much.
0:12:38 > 0:12:41Andrew definitely had his eye on the bigger picture here.
0:12:41 > 0:12:45He didn't care about the state of the house, didn't even view it.
0:12:45 > 0:12:48What he wanted was the plot.
0:12:48 > 0:12:53Will he really be able to get this place done up and rented out at minimal cost
0:12:53 > 0:12:57and will he be successful with his planning application to build houses on this site?
0:12:57 > 0:13:01Or maybe he'll get tangled up in a red-tape planning nightmare.
0:13:01 > 0:13:05Well, you can find out exactly what happens later on in the programme.
0:13:08 > 0:13:11For the next property that went under the hammer,
0:13:11 > 0:13:15I've come to a north-western city that's seen some changes.
0:13:21 > 0:13:24Well, Salford is not so much on the up.
0:13:24 > 0:13:27You could argue it's a long way there.
0:13:27 > 0:13:32It's been transformed by mass regeneration.
0:13:32 > 0:13:33Media jobs are coming up here.
0:13:33 > 0:13:38You're only five minutes from the centre of Manchester, so it really is the place to be.
0:13:38 > 0:13:41Big question is, is it the place to buy?
0:13:41 > 0:13:44It has certainly smartened up over the years
0:13:44 > 0:13:50and with a massive £650 million in the pot for further regeneration,
0:13:50 > 0:13:53this could be an area for some attractive investments.
0:13:53 > 0:13:59This is Gerald Road, nicely lined with Victorian properties.
0:13:59 > 0:14:01Nothing too unusual so far.
0:14:01 > 0:14:05However, wait until I tell you that the property I'm here to see
0:14:05 > 0:14:09sold in 2002 for £10,000.
0:14:09 > 0:14:11Yes, just £10,000.
0:14:11 > 0:14:15A year later, it sold for £25,000.
0:14:15 > 0:14:17And here we are, seven years on,
0:14:17 > 0:14:22and it went up to the auction with a guide price of 50,000 quid.
0:14:22 > 0:14:25From 10,000 to 50,000?
0:14:25 > 0:14:30Salford's meteoric rise in a nutshell.
0:14:30 > 0:14:33So what is the house like?
0:14:33 > 0:14:37Well, let's find out. Straightaway, that's interesting.
0:14:37 > 0:14:39That wall there in the hallway here
0:14:39 > 0:14:42looks like it's leaning this way a bit. That's a bit frightening.
0:14:42 > 0:14:45- HE LAUGHS - And in fact there's some cracking up there.
0:14:45 > 0:14:50Certainly, that needs investigating, but basically that's the entrance hall there.
0:14:50 > 0:14:55You've got your first living area here. Looks like it's been converted into one of the bedrooms.
0:14:55 > 0:14:57It's full of...looks to me like student furniture
0:14:57 > 0:15:02and in fact I think this would probably be a student-type let.
0:15:02 > 0:15:03Through to the rear sitting room.
0:15:03 > 0:15:07It's not actually a bad-size space, but it's just full of furniture.
0:15:07 > 0:15:10You can't actually see how big it is, but actually I like this.
0:15:10 > 0:15:13Then through this way to the kitchen.
0:15:16 > 0:15:19That's where you find more evidence of neglect.
0:15:19 > 0:15:20It's all very shabby.
0:15:20 > 0:15:24It's also grubby, dingy and needs ripping out.
0:15:24 > 0:15:28That's disappointing, because outside, the house looks to be in good condition.
0:15:28 > 0:15:32The brickwork's sound and the windows have been replaced and look OK.
0:15:32 > 0:15:34Well, at least at the front.
0:15:34 > 0:15:38I'm afraid the rear of this terraced property isn't so good.
0:15:38 > 0:15:42The roof definitely needs some attention.
0:15:42 > 0:15:44Well, that's the ground floor and the exterior.
0:15:44 > 0:15:46What's it like upstairs?
0:15:46 > 0:15:49So upstairs and you've got the bathroom and loo here.
0:15:49 > 0:15:53That's nice to have. Often in these kind of properties that would be
0:15:53 > 0:15:57out at the rear of the kitchen, so it's good that that's there.
0:15:57 > 0:16:00Then, basically, all you've got is your two bedrooms.
0:16:00 > 0:16:02But they're a good size, especially this one,
0:16:02 > 0:16:06which is basically the full width of the house. Nothing to dislike.
0:16:06 > 0:16:10Not in bad nick. Apart from that wall downstairs, nothing too serious as far as I can see.
0:16:10 > 0:16:13Lick of paint, some wallpaper,
0:16:13 > 0:16:16new carpets and you could rent this place out like that!
0:16:16 > 0:16:21Magic, but there's the worry that when you peel off this industrial-strength wallpaper,
0:16:21 > 0:16:23the plaster will come with it.
0:16:23 > 0:16:26But apart from that, the house is just dated, not dangerous.
0:16:26 > 0:16:31I suspect that in the past it's been let to students,
0:16:31 > 0:16:32with the two bedrooms up here,
0:16:32 > 0:16:35and the lounge downstairs used as a third bedroom.
0:16:35 > 0:16:40And as the university's just ten minutes' walk away, that's the choice I'd make here again.
0:16:40 > 0:16:43But beware, it's not the instant money-maker it used to be.
0:16:43 > 0:16:49A few years ago, this property would have been an absolute dead cert for renting out to students,
0:16:49 > 0:16:54but as time goes on, student tastes get more and more sophisticated.
0:16:54 > 0:16:59They want special rooms where they can have leisure facilities. They want washing facilities.
0:16:59 > 0:17:02They want clean, new accommodation like this.
0:17:02 > 0:17:07When I was at university, if it didn't have a hole in the roof, we considered it a bonus.
0:17:07 > 0:17:11But no, this is the market you're up against now and you've got to bear that in mind
0:17:11 > 0:17:15and if you want to rent to students, you've got to match these standards.
0:17:15 > 0:17:19If you can't, then maybe you need to think about a plan B.
0:17:19 > 0:17:23It might have an industrial look on the outside of the building,
0:17:23 > 0:17:26but in fact it's the modern face of student living -
0:17:26 > 0:17:30broadband, games room, modern kitchen, secure parking.
0:17:30 > 0:17:32Student landlords, take note.
0:17:34 > 0:17:38To find out what this house will need to compete in that market,
0:17:38 > 0:17:40I've invited the local estate agent.
0:17:40 > 0:17:45What does he suggest a buy-to-let investor should tackle first?
0:17:45 > 0:17:49'Students are looking for modern properties and therefore if you were
0:17:49 > 0:17:51'looking to modernise this property,'
0:17:51 > 0:17:53I'd put in a new kitchen and bathroom
0:17:53 > 0:17:57to bring it up to speed with the purpose-built neighbouring properties
0:17:57 > 0:17:59which will be to a far higher specification,
0:17:59 > 0:18:06which means you may have to invest slightly more in this property then potentially was first realised.
0:18:06 > 0:18:09The house went to auction guided at 50,000.
0:18:09 > 0:18:15Once renovated, how much income could the house produce, whether let to students or not?
0:18:15 > 0:18:20If you let this property as a single dwelling, you would aim for 500-550 maximum per calendar month.
0:18:20 > 0:18:23If you were to let to students, dividing it into three bedrooms,
0:18:23 > 0:18:26you'd be aiming for £50 per calendar week per room.
0:18:26 > 0:18:31With three bedrooms, that would generate £600 per calendar month.
0:18:31 > 0:18:37Meanwhile, bearing in mind that guide price of 50,000, how much could it be worth once renovated?
0:18:37 > 0:18:43If you were to sell the property in its current condition, you'd be looking at around £70,000.
0:18:43 > 0:18:46If you were to do the refurbishment throughout,
0:18:46 > 0:18:48you may aim towards 80,000-85,000.
0:18:48 > 0:18:52This Salford semi has shown resilience in the last seven years.
0:18:52 > 0:18:56Its value has gone from 10,000 to £50,000, despite the credit crunch.
0:18:56 > 0:18:59Blooming marvellous!
0:19:01 > 0:19:06So is the future for this property as rosy as its recent past?
0:19:06 > 0:19:10I think it could be. Let's see who went for it at the auction.
0:19:13 > 0:19:16This is a vacant two-bedroom terrace property.
0:19:16 > 0:19:18Guide price 50,000.
0:19:18 > 0:19:21Who's going to open up with 50?
0:19:21 > 0:19:2350 anywhere? 50,000 bid.
0:19:23 > 0:19:24Thank you then. 50 I have.
0:19:24 > 0:19:29Do I see 51? 51,000. 52. 53. 54.
0:19:29 > 0:19:3455. 56. 57. 58. 59.
0:19:34 > 0:19:3860. 61? No. At £60,000.
0:19:38 > 0:19:4160 and a half? 60 and a half. 61?
0:19:41 > 0:19:4361. 61 and a half? 62?
0:19:43 > 0:19:4662 and a half. 63?
0:19:46 > 0:19:47No. At 62,500 then.
0:19:47 > 0:19:52Are we all done? At 62,500 then for the first time.
0:19:52 > 0:19:5463. 63 and a half is against.
0:19:54 > 0:19:5563 and a half. 64?
0:19:55 > 0:19:5763,500.
0:19:57 > 0:20:0163,750? Why not?
0:20:01 > 0:20:0363,750.
0:20:03 > 0:20:0664. At 64,000 then.
0:20:06 > 0:20:08Any advance on 64,000?
0:20:08 > 0:20:11Gentleman's bid at the right. 64,000 for the first time.
0:20:11 > 0:20:18At £64,000 for the second and final time. Are we all done at £64,000?
0:20:18 > 0:20:23Well, you couldn't tell, but the winning bid of £64,000 was made by Gary.
0:20:23 > 0:20:28He's from Manchester and was looking for an investment in sunny Salford.
0:20:28 > 0:20:32I met up with him back at the property to find out what he has planned for it.
0:20:32 > 0:20:34- Gary, good to meet you.- Likewise.
0:20:34 > 0:20:36Congratulations. We didn't see you at the auction.
0:20:36 > 0:20:40No, I was hiding at the very back, behind a pillar, I believe.
0:20:40 > 0:20:43Oh, OK. Any particular reason for that?
0:20:43 > 0:20:46Well, to keep me eye on what's going on and get a last-minute bid in.
0:20:46 > 0:20:49It's a bit of a ploy there I think. MARTIN LAUGHS
0:20:49 > 0:20:51But as it was, you were bidding earlier on.
0:20:51 > 0:20:53Yeah, on a property across the road
0:20:53 > 0:20:56and I set a target, but it was either/or,
0:20:56 > 0:20:59and the one across the road went for a bit more than I expected to pay,
0:20:59 > 0:21:03- so I thought I'd give this one a whirl. I was lucky and got it.- Right.
0:21:03 > 0:21:05So why did you want to buy THIS place?
0:21:05 > 0:21:10Well, first and foremost, it's right in the heart of the university complex,
0:21:10 > 0:21:13so it would be ideal for letting to students.
0:21:13 > 0:21:16That's the idea. I bought it as an investment property.
0:21:16 > 0:21:20- Is this something you've done before?- Yeah, I'm a part-time developer.
0:21:20 > 0:21:24I've always had an aspiration, for many years, to get into property.
0:21:24 > 0:21:29I started about two or three years ago and building up slowly but surely.
0:21:29 > 0:21:34And now I'm at the stage where I've got several under my belt and the plan's going well at the moment.
0:21:34 > 0:21:37- Right.- And it's a good time to buy, obviously.
0:21:37 > 0:21:41- Yeah, sure. What do you do when you're not...?- I'm an engineer, an electrical engineer.
0:21:41 > 0:21:44- Great!- I used to work for the Electricity Board.
0:21:44 > 0:21:45I set up my own company five years ago,
0:21:45 > 0:21:49so I've flipped my time between property development and engineering.
0:21:49 > 0:21:52With his background in the construction industry,
0:21:52 > 0:21:57electrical engineer Gary was well placed to put some spark back in this place.
0:21:57 > 0:22:03He currently has a portfolio of six properties, which he hopes to expand over the next few years.
0:22:03 > 0:22:07With this, his latest purchase, he's sensibly already had a survey.
0:22:07 > 0:22:10That revealed that it needs a damp-proof course
0:22:10 > 0:22:12and that the roof should be checked.
0:22:12 > 0:22:14However, on the positive side,
0:22:14 > 0:22:18that bowed wall in the hall is just the result of some dodgy plastering,
0:22:18 > 0:22:21so that's relatively easy to fix. Unlike his other properties,
0:22:21 > 0:22:25Gary's intention for this house is to let to students.
0:22:25 > 0:22:28It'll be his first time, so this electrical engineer
0:22:28 > 0:22:29might be in for a bit of a shock.
0:22:31 > 0:22:34Students these days demand quite high standards, don't they?
0:22:34 > 0:22:39And they want the Internet, all that stuff built in, and you've got some competition nearby.
0:22:39 > 0:22:43How do you think you'll fare with that kind of competition around?
0:22:43 > 0:22:48It's a good question. I'm pretty flexible. If they want to bring their own stuff in, fine.
0:22:48 > 0:22:49If they want me to furnish it, fine.
0:22:49 > 0:22:52Obviously, there's always a budget with these things
0:22:52 > 0:22:57and I'm not going to give them, you know, wide-screen TVs in every room and Sky TV.
0:22:57 > 0:23:01Within reason, I'm quite happy to accommodate their needs, shall we say,
0:23:01 > 0:23:03and provide a broadband connection.
0:23:03 > 0:23:05So what's the plan for the house?
0:23:05 > 0:23:08Well, first I want to remove the majority of the furniture,
0:23:08 > 0:23:13carpets, get everything cleared out and start from the top, working my way down -
0:23:13 > 0:23:17remove wallpaper, strip it back to bare walls, plaster where it's needed.
0:23:17 > 0:23:19Bath looks in good condition. Toilet seems fine.
0:23:19 > 0:23:23So in the bathroom, literally, just a lick of paint, new flooring,
0:23:23 > 0:23:27replace the tiles and that's done, really.
0:23:27 > 0:23:31The kitchen has had a new boiler, which will save a bit of expense.
0:23:31 > 0:23:33That's one of the first things I look at.
0:23:33 > 0:23:35The doors seem in reasonable condition.
0:23:35 > 0:23:39I think, again, a good cleaning and maybe clean the work surfaces down.
0:23:39 > 0:23:44Remove the wallpaper, a lick of paint, and that's the plan for both to try and keep the cost down.
0:23:44 > 0:23:47- So what's the budget going to be? - I've deliberated over this.
0:23:47 > 0:23:50I've got myself a budget of around £3,000.
0:23:50 > 0:23:52- Three?!- £3,000, yeah.
0:23:52 > 0:23:55- It's really tight. - I always work on a tight budget.
0:23:55 > 0:23:58Sometimes I'm over, sometimes I'm under.
0:23:58 > 0:24:02That includes, obviously, the damp-proof course, which will cost me about 250.
0:24:02 > 0:24:07The only real contractor I can envisage is the damp proof and the flooring contractor
0:24:07 > 0:24:09to put the flooring down and the carpets,
0:24:09 > 0:24:12- but anything else, I'll have a go myself.- And timescales?
0:24:12 > 0:24:15I've given myself a programme of six weeks.
0:24:15 > 0:24:19I'll be spending the evenings here and weekends, so every spare minute,
0:24:19 > 0:24:23I'll be down here and cracking on with it and getting it done.
0:24:23 > 0:24:27- Congratulations and we look forward to seeing how you get on.- Thank you.
0:24:32 > 0:24:34Well, I think Gary has got himself
0:24:34 > 0:24:40a great property here, but this is his first venture into student letting
0:24:40 > 0:24:47and will that £3,000 refurbishment be enough to entice students into this property?
0:24:47 > 0:24:49You can find out later in the show.
0:24:50 > 0:24:53Coming up, we return to the manor house
0:24:53 > 0:24:55I first got excited about in 2008.
0:24:55 > 0:24:59It's got seven bedrooms, three storeys, just oozing with character.
0:25:01 > 0:25:04In Salford, did Gary's quick and easy renovation
0:25:04 > 0:25:05go as smoothly as planned?
0:25:07 > 0:25:10When I took the wallpaper off, it took half the wall with it.
0:25:13 > 0:25:14But first, in Wiltshire,
0:25:14 > 0:25:16did Andrew get the best out of this house?
0:25:16 > 0:25:20We've done things on a very...cost-effective basis.
0:25:23 > 0:25:25Time now to head back to Staverton
0:25:25 > 0:25:28in Wiltshire, where earlier in the programme Andrew paid
0:25:28 > 0:25:31£180,000 for this chalet bungalow.
0:25:31 > 0:25:34He already owns a large eight-bedroom property next door
0:25:34 > 0:25:36and a plot of land behind it,
0:25:36 > 0:25:40so buying the bungalow was the last piece in his jigsaw.
0:25:40 > 0:25:44He hoped to get outline planning permission to demolish the bungalow
0:25:44 > 0:25:48and then use that land, along with his existing plot,
0:25:48 > 0:25:52build a new development and convert the neighbouring house he already owns.
0:25:52 > 0:25:55That would obviously take time to come to fruition,
0:25:55 > 0:26:00so he planned to do up the bungalow and rent it out whilst he waited.
0:26:00 > 0:26:02Well, it's almost six months later now
0:26:02 > 0:26:06and his team have given the bungalow a remarkably good refurbishment,
0:26:06 > 0:26:08considering it's destined to be demolished.
0:26:14 > 0:26:18In this room, we put new carpet down, as we have in every other room.
0:26:18 > 0:26:20New curtains.
0:26:20 > 0:26:23We had the gas fire serviced and certificated.
0:26:23 > 0:26:27The heating is still the same as it was. Hot-air heating. Perfectly fine.
0:26:27 > 0:26:30It was serviced and ready to go.
0:26:30 > 0:26:33He's let the house out to tenants already.
0:26:33 > 0:26:37The sprucing up of the bungalow started in the kitchen.
0:26:40 > 0:26:44In here, we put a new floor down, replaced the cooker, obviously.
0:26:44 > 0:26:46That was a mess.
0:26:46 > 0:26:49We've painted it, cleaned it thoroughly,
0:26:49 > 0:26:52and I'm very pleased with it. I think it looks good.
0:26:53 > 0:26:57Andrew's had help from some of the workers who rent his neighbouring property.
0:26:57 > 0:27:03The team have gone through the house from top to bottom, redecorating and refreshing the whole place.
0:27:03 > 0:27:06Yes, the bathroom remains and it's pretty much as it was,
0:27:06 > 0:27:08but considering it's on borrowed time,
0:27:08 > 0:27:10it's all that's required for now.
0:27:12 > 0:27:15And the work hasn't stopped inside.
0:27:15 > 0:27:20We've changed a lot of the external woodwork. A lot of that was rotten. We've replaced that.
0:27:20 > 0:27:24We've done things on a very...cost-effective basis.
0:27:24 > 0:27:27We had a couple of lads come in from the house next door to paint it.
0:27:27 > 0:27:28We've put new carpets down.
0:27:28 > 0:27:30Been very little done.
0:27:31 > 0:27:35So a quick makeover has breathed life into the old bungalow.
0:27:35 > 0:27:38How much has Andrew had to spend on it?
0:27:38 > 0:27:40Probably no more than 4,000 or 5,000.
0:27:40 > 0:27:45Most of it was labour, simply being paint and painting,
0:27:45 > 0:27:48a cooker and carpets, plus the external woodwork.
0:27:48 > 0:27:51Initially, he'd hoped to build four terraced houses
0:27:51 > 0:27:53on the land behind the bungalow,
0:27:53 > 0:27:58but the council indicated that two four-bedroom houses would be more acceptable,
0:27:58 > 0:28:03so Andrew's architect has drawn up a new application for planning permission.
0:28:03 > 0:28:06We have these plans that they seem to like.
0:28:06 > 0:28:09Where there was a big house and a bungalow,
0:28:09 > 0:28:13we now want to put four detached houses alongside the main house,
0:28:13 > 0:28:15which will be split into three.
0:28:15 > 0:28:18So the proposal is to demolish the bungalow
0:28:18 > 0:28:21and build one four-bedroom house in the front garden
0:28:21 > 0:28:24and a second in the back garden, with access from a neighbouring road.
0:28:24 > 0:28:29A further two four-bedroom houses will be built behind that.
0:28:29 > 0:28:32Access is very good on this site,
0:28:32 > 0:28:36because there's two access points to the front of the main house,
0:28:36 > 0:28:39there's one to the rear and there's one to this property.
0:28:39 > 0:28:41So there's four access points.
0:28:41 > 0:28:46The large detached house that Andrew's workers currently rent
0:28:46 > 0:28:48will be divided into three new apartments.
0:28:48 > 0:28:54How much does he anticipate it will cost, if he manages to get the planning permission?
0:28:54 > 0:29:01The costs of 30,000 are what I have in mind and that should be a minute planning detail,
0:29:01 > 0:29:05all the architect's fees. We've had to cut the trees down.
0:29:05 > 0:29:08We might have to cut the sequoias down and replace them.
0:29:08 > 0:29:10I would think that will be our costs.
0:29:10 > 0:29:13He bought the bungalow for 180,000 and there's a fantastic development
0:29:13 > 0:29:19opportunity here, so Andrew must be pleased.
0:29:19 > 0:29:21Yeah, I am thrilled. I am thrilled to get this.
0:29:21 > 0:29:27I think we paid the right price and I think the value of the whole will be greater than the sum of the parts.
0:29:28 > 0:29:32Time to see if two local estate agents share his optimism.
0:29:34 > 0:29:36The house is well located.
0:29:36 > 0:29:39It's had a cosmetic makeover.
0:29:39 > 0:29:42It's rather basic in terms of fittings to the kitchen and
0:29:42 > 0:29:46bathrooms and I believe any family coming in would want to make further
0:29:46 > 0:29:48improvements to enhance the home.
0:29:48 > 0:29:51He's obviously cleaned it up outside. He's taken down the leylandii.
0:29:51 > 0:29:53A bit of a spruce up. Taken some moss
0:29:53 > 0:29:57off the tiles on the roof and made it, what we would class, as rentable.
0:29:57 > 0:30:01The plans I've seen for the site look very good indeed.
0:30:01 > 0:30:03I think it's quite a good development.
0:30:03 > 0:30:07There's obviously been a lot taking place in the local area
0:30:07 > 0:30:11and individual properties on this site would fare well.
0:30:11 > 0:30:12Planners locally are quite strict.
0:30:12 > 0:30:16There will be stipulations and a lot of boxes he'll have to tick,
0:30:16 > 0:30:19but I think if he executes it properly, he should be able to
0:30:19 > 0:30:23produce quite a good build which will have a high development value.
0:30:23 > 0:30:26Don't forget, it depends on getting planning permission.
0:30:26 > 0:30:29But, short-term, Andrew's letting the house out.
0:30:29 > 0:30:32So how much rent should it be earning?
0:30:32 > 0:30:37As the property stands, I think you'd be looking somewhere in the £700 per calendar month mark.
0:30:37 > 0:30:44A rental would be £750 per calendar month, to probably about £800 per calendar month.
0:30:44 > 0:30:45That's fine.
0:30:45 > 0:30:48I'm quite relaxed about that, yeah.
0:30:48 > 0:30:51Actually, that's more than I'd have thought.
0:30:51 > 0:30:53What's the bungalow worth now?
0:30:53 > 0:30:58Remember, Andrew paid £180,000 for it and has spent about another five.
0:30:58 > 0:31:01If he chose to sell the property as is with the work that he's done,
0:31:01 > 0:31:07I think he'd be looking somewhere in the region of 190, £180,000-190,000.
0:31:07 > 0:31:11I'd value the property in the current market at £185,000-£190,000.
0:31:11 > 0:31:13So no profit in this condition.
0:31:13 > 0:31:17However, that's academic, because if Andrew gets planning permission, he'll demolish the
0:31:17 > 0:31:23bungalow, turn the house he already owns next door into three apartments and then sell it all off as one lot.
0:31:23 > 0:31:25How much could that be worth?
0:31:25 > 0:31:28With regard to selling this site as is with planning, one would like to
0:31:28 > 0:31:31think that he'd get somewhere in the region of a million pounds.
0:31:31 > 0:31:34This is a very interesting development site.
0:31:34 > 0:31:36I would place the valuation around one million pounds.
0:31:36 > 0:31:40I'm quite relaxed about a million pounds for the site.
0:31:40 > 0:31:44However, there is the house as well and that has to come into the
0:31:44 > 0:31:48figuring, so I would want between 1.3 and 1.5 million
0:31:48 > 0:31:50for the whole site with the existing house.
0:31:50 > 0:31:54The first hurdle is to get the planning permission and, even then,
0:31:54 > 0:31:58Andrew doesn't have to sell straightaway.
0:31:58 > 0:32:02Maybe the bungalow has more life left in it than we first thought.
0:32:04 > 0:32:07I'm now going to revisit a property in Shadoxhurst,
0:32:07 > 0:32:14ten minutes' drive from Ashford in Kent, although it feels a world away.
0:32:14 > 0:32:19# ..Sweet country boy love... #
0:32:19 > 0:32:22Set in idyllic countryside,
0:32:22 > 0:32:26I'm here to see a property that I'm just so excited about.
0:32:26 > 0:32:31In fact, it used to be the local manor house, dating back from the 14th century.
0:32:31 > 0:32:35It's got seven bedrooms, three storeys, just oozing
0:32:35 > 0:32:39with character and just look at that Kent peg-tiled roof.
0:32:39 > 0:32:42It's got those beautiful leaded light windows.
0:32:42 > 0:32:47Now, it was guided at £420,000-450,000.
0:32:47 > 0:32:49I am loving it. I'm going to get inside.
0:32:53 > 0:32:58This property is Grade II listed and has seen many changes throughout the years.
0:32:58 > 0:33:03Not only has it been a family home, but at one point it was even a pub.
0:33:03 > 0:33:10Well, this room would originally have been the great hall, opening up into the big roof space.
0:33:10 > 0:33:14Imagine how grand that would have been. Certainly seen better days.
0:33:14 > 0:33:16Look at this old panelling here!
0:33:16 > 0:33:18It's got an inglenook over here.
0:33:18 > 0:33:21You've got these beautiful, old original beams.
0:33:21 > 0:33:24It's no surprise, bearing in mind the age of the house and
0:33:24 > 0:33:28all these amazing features, that this property is listed.
0:33:28 > 0:33:33In fact, all properties built before 1700 are automatically listed
0:33:33 > 0:33:38and this basically means that this building is protected by law and you have to get permission to make
0:33:38 > 0:33:42any changes, outside and in, which affect the character of the house.
0:33:42 > 0:33:48So no ripping out any of the original features and no willy-nilly knocking down walls.
0:33:48 > 0:33:56So the renovation is going to have to be carefully planned and the house does need a lot of work.
0:33:56 > 0:34:02For a start, in the living room, the floorboards will have to be replaced.
0:34:02 > 0:34:06And that kitchen could do with more than just a good sweep.
0:34:06 > 0:34:09The house is full of character though and down every corridor
0:34:09 > 0:34:14there's another room with inspiring possibilities.
0:34:14 > 0:34:19And upstairs is a maze of great-sized rooms.
0:34:19 > 0:34:24This really is all so higgledy-piggledy upstairs.
0:34:24 > 0:34:26Lots of doors and corridors, sloping floors.
0:34:26 > 0:34:30Now, this here is the huge tie beam.
0:34:30 > 0:34:32It would have been exposed over the great hall.
0:34:32 > 0:34:38It would have arced its way over. Over here, you've got the brace, which is enormous.
0:34:38 > 0:34:40This would have been carved out of a massive
0:34:40 > 0:34:43piece of timber and there's actually a matching one on the other side.
0:34:43 > 0:34:46I could spend hours wandering around here.
0:34:46 > 0:34:48It's just so special.
0:34:55 > 0:34:56I love this house.
0:34:56 > 0:35:03It has character and history and it sits on this amazing plot near a lovely village.
0:35:03 > 0:35:08But it is a huge project and a listed building, so renovating this won't be straightforward.
0:35:08 > 0:35:12So who had the courage to take Green Farm on?
0:35:12 > 0:35:13Let's find out at the auction.
0:35:17 > 0:35:19Lot ten. Start me where you will.
0:35:19 > 0:35:22Can I say 420 to start me off?
0:35:22 > 0:35:25At 420, I've got. 425 now if you like.
0:35:25 > 0:35:27425. Thank you, sir. 425.
0:35:27 > 0:35:32430. And 5. 435. 435.
0:35:32 > 0:35:37And 40. 440. And 5. 445. And 50.
0:35:37 > 0:35:39450.
0:35:39 > 0:35:43At £445,000 I've got. 450, I'm looking for.
0:35:43 > 0:35:46450. Thank you. And 5. 455.
0:35:46 > 0:35:50455. And 60.
0:35:50 > 0:35:52460. 460.
0:35:52 > 0:35:54455, I have on my left-hand side.
0:35:54 > 0:35:56He's been with it for a long time.
0:35:56 > 0:36:03I will sell for the first time at £455,000. Second time at £455,000.
0:36:03 > 0:36:06455,000, the third and final time.
0:36:06 > 0:36:08Can't need more opportunity than that. All done.
0:36:08 > 0:36:11You've bought it, sir. Big smile on your face, I hope.
0:36:11 > 0:36:16- And the number, please.- And the successful bid of 455,000 came
0:36:16 > 0:36:19from Mary Ann, but it was actually her husband who did the bidding.
0:36:19 > 0:36:26Mary Ann is a London-based property developer, but this house isn't going to be just another project.
0:36:26 > 0:36:28She plans to make it her new home.
0:36:31 > 0:36:34- Mary Ann, I've just got to say congratulations.- Thank you.
0:36:34 > 0:36:38Now, how did you fall upon this little gem?
0:36:38 > 0:36:41Well, I've been having my eye on it for about a couple of years.
0:36:41 > 0:36:46We heard a rumour that it might be coming on the market and I've been watching it all the time.
0:36:46 > 0:36:47So why did you want to buy this?
0:36:47 > 0:36:51My parents live just up the road and they have had the place
0:36:51 > 0:36:55since I was nine and I spent most of my childhood in the area.
0:36:55 > 0:37:00And I got married just up the road about three-and-a-half years ago, literally diagonally opposite.
0:37:00 > 0:37:03For years you must have walked past this house, looking at it fondly?
0:37:03 > 0:37:06I have always loved the house, always loved it.
0:37:06 > 0:37:10So as Mary Ann and her husband got married just across the road,
0:37:10 > 0:37:15by the sounds of it, this property has found its perfect match.
0:37:15 > 0:37:17# When I fall in love
0:37:20 > 0:37:25# It will be forever... #
0:37:25 > 0:37:30So now you've managed to buy this at auction, how do you feel?
0:37:30 > 0:37:35Very excited and actually the whole feeling is that you can't
0:37:35 > 0:37:38believe that something you've really wanted actually happens.
0:37:38 > 0:37:41What are going to do to it? How are you going to change it?
0:37:41 > 0:37:45Well, it's quite interesting cos it's a hard one to come up with,
0:37:45 > 0:37:47because you don't want to change it.
0:37:47 > 0:37:51You want to make the most of the features and bring that out.
0:37:51 > 0:37:57And at the same time, because it's Grade II listed, there's only a certain amount we can do.
0:37:57 > 0:37:59So, first, we got an architect involved.
0:37:59 > 0:38:03We'll go through some of the options of what we'll be allowed to do.
0:38:03 > 0:38:07For me, it's about keeping it very simple and quite minimalist but
0:38:07 > 0:38:10bringing out all the features from the actual building.
0:38:10 > 0:38:13There could be a never-ending amount of renovation done here,
0:38:13 > 0:38:19so how much has Mary Ann set aside as her budget?
0:38:19 > 0:38:24I think you'd have to say anything from 100,000 up to 200,000, at least.
0:38:24 > 0:38:27- Easily.- Yes.- Depending on how far you want to take this.
0:38:27 > 0:38:29Yeah, absolutely. It's really hard to say.
0:38:29 > 0:38:33So how does buying this and developing this differ from your day job.
0:38:33 > 0:38:37Well, my day job, I would give myself three months and I'd be,
0:38:37 > 0:38:41on day one, getting the keys and the builders would be in there.
0:38:41 > 0:38:44And by three months later, it would be rented.
0:38:44 > 0:38:46With this, it's totally different.
0:38:46 > 0:38:53You know, if I try and push things to make them happen quickly, I think I'm going to sort of regret that.
0:38:53 > 0:38:56I think I need to give it time and do it more gradually.
0:38:56 > 0:39:00It's going to be more challenging, cos I've got to slow down a little bit.
0:39:01 > 0:39:08But when we first returned, the restoration was still a long way from the finish line.
0:39:08 > 0:39:11I bought the place about 12 months ago
0:39:11 > 0:39:16and we were hoping to be in by now. I think we've probably got
0:39:16 > 0:39:19another four or five months until the property's ready.
0:39:19 > 0:39:25Well, it took a bit longer, but we'll show you the stunning result later in the programme.
0:39:28 > 0:39:32Now renovating a property can be a very time-consuming process.
0:39:32 > 0:39:35Especially if things don't go according to plan.
0:39:35 > 0:39:39So did our buyers' plans even get off the drawing board?
0:39:40 > 0:39:44We now return to Salford, near Manchester.
0:39:44 > 0:39:47Earlier in the programme, part-time property developer Gary, who runs his own
0:39:47 > 0:39:53electrical engineering business, paid £64,000 for this mid-terrace.
0:39:53 > 0:39:56It was to add to the other six properties in his portfolio.
0:39:56 > 0:40:00His plan was to give the place a quick makeover and let it out to students.
0:40:00 > 0:40:04Now, just over two months later, we met up again with Gary back at
0:40:04 > 0:40:09the house, to find out what he's achieved.
0:40:09 > 0:40:12Well, the changes are largely cosmetic.
0:40:12 > 0:40:16The living room's lost all the furniture.
0:40:16 > 0:40:19That orange colour scheme had to go and the laminate flooring is
0:40:19 > 0:40:25much more practical for lots of student traffic. Upstairs, the
0:40:25 > 0:40:28two bedrooms are newly carpeted.
0:40:29 > 0:40:35Although the bathroom suite remains, the new shower curtain and matching colour scheme are an improvement.
0:40:35 > 0:40:40How does this refurbishment compare with other properties Gary's worked on?
0:40:40 > 0:40:41I've been pretty lucky.
0:40:41 > 0:40:44Some projects can be a lot more difficult than others, but this one,
0:40:44 > 0:40:46the biggest thing I had to do was a bit of plastering
0:40:46 > 0:40:51in the front bedroom. When I took the old wallpaper off, it took half the wall with it.
0:40:51 > 0:40:57Ouch! Remember, Gary originally planned to strip all the wallpaper, but after that experience in the
0:40:57 > 0:41:02front bedroom, he decided to leave well alone and just paint the walls.
0:41:02 > 0:41:06What we've done in here, we've emulsioned the walls,
0:41:06 > 0:41:09glossed the skirting boards and obviously put flooring down.
0:41:09 > 0:41:13As you can see, a total difference from what it was originally.
0:41:13 > 0:41:17You know, simple colour scheme and flooring sort of finishes it off.
0:41:17 > 0:41:23After he paid £64,000 at auction, you may remember that Gary then had a survey done on the house.
0:41:23 > 0:41:27It identified a damp issue and possible need for a damp course.
0:41:27 > 0:41:29So has this been resolved?
0:41:29 > 0:41:32We put a damp meter on ourselves and we couldn't detect any damp.
0:41:32 > 0:41:35We think it might just have been condensation.
0:41:35 > 0:41:38We had an inspection. We don't think a damp-proof course is required.
0:41:38 > 0:41:41So that would have been one of the most difficult things we needed to do.
0:41:41 > 0:41:48At the back of the house in the kitchen, Gary's wish to keep the sink and the worktop had to change.
0:41:48 > 0:41:51We've replaced the worktops. The old worktops were pretty rotten really.
0:41:51 > 0:41:53A lot of water had got into them.
0:41:53 > 0:41:59We replaced the worktops, put a new sink in, new taps and replaced the tiles.
0:41:59 > 0:42:04All that remains to be done in here now is a couple coats of paint, get the boiler serviced
0:42:04 > 0:42:06and that's it. Give the floor a good clean.
0:42:06 > 0:42:11The only thing with the flooring is, if it doesn't come up pretty good, then we'll have to
0:42:11 > 0:42:14scree the floor and maybe put some vinyl down, just to finish it off.
0:42:14 > 0:42:18As Gary's a qualified electrical engineer with years of experience in
0:42:18 > 0:42:23the construction industry, he turned his hand to most of the work here.
0:42:23 > 0:42:25I did all the decorating and plumbing,
0:42:25 > 0:42:29but to speed the process up, I got a chap in who does a bit of joinery work
0:42:29 > 0:42:31for me and he did the flooring downstairs.
0:42:31 > 0:42:33The carpets were fitted professionally.
0:42:33 > 0:42:37For a couple of months, Gary spent all his spare time here.
0:42:37 > 0:42:41He knows the quicker the house is finished, the quicker it can start generating income.
0:42:41 > 0:42:44How much has he had to spend here?
0:42:44 > 0:42:48Originally, it was £3,000 and the last count we were at £1,850.
0:42:48 > 0:42:52That includes the carpets and the flooring, etc, all the paint and materials.
0:42:52 > 0:42:56On top of that, you've got your legal fees. There's a bit of snagging to do.
0:42:56 > 0:43:00There's a strip of wallpaper missing in the front bay window downstairs.
0:43:00 > 0:43:02We've ordered that from the manufacturer.
0:43:02 > 0:43:07Fit the radiator in the front bedroom. We're pretty much done. Not much else to do.
0:43:07 > 0:43:10I'm a bit concerned that Gary's first buy to let
0:43:10 > 0:43:16is aimed at the student market, but he's not installed all the fancy features they now seem to expect.
0:43:16 > 0:43:18There's a lot of competition.
0:43:18 > 0:43:24So where's the internet access that's now a standard requirement of most students?
0:43:24 > 0:43:26We've got the facility for broadband connected.
0:43:26 > 0:43:28We've just got to get it reconnected at the local server.
0:43:28 > 0:43:33Time to see how two local estate agents will rate the property.
0:43:35 > 0:43:37I think the changes which have been made
0:43:37 > 0:43:38are minimal.
0:43:38 > 0:43:41The basic essentials which you would need
0:43:41 > 0:43:44to transform it from what it was into what it presently is.
0:43:44 > 0:43:48What he has done is good, but it is just the bare essentials.
0:43:48 > 0:43:51It is very basic, but it's very nice and open.
0:43:51 > 0:43:55It's ideal for a student let. It's very close to the university
0:43:55 > 0:43:57and it's been furnished for students, which is great.
0:43:57 > 0:44:00For the student market it should be sufficient for their needs.
0:44:00 > 0:44:02It's got two double bedrooms.
0:44:02 > 0:44:03It has a shower over the bath.
0:44:03 > 0:44:05It should tick all of the boxes.
0:44:05 > 0:44:08If Gary ends up letting out the whole house
0:44:08 > 0:44:11and not on a room-by-room basis to students,
0:44:11 > 0:44:13how much rent could it earn?
0:44:13 > 0:44:17If you were to market the property in its entirety and not per room,
0:44:17 > 0:44:22then you would be looking to market at £550 per calendar month, maximum 575 per calendar month.
0:44:22 > 0:44:29Private market, if you're looking to let it out to a family, around about £500-£550 per calendar month.
0:44:29 > 0:44:31That's pretty much in line with my expectations.
0:44:31 > 0:44:35I was expecting slightly more, but I'd be more than happy with 575 a month
0:44:35 > 0:44:39in terms of rental income. Definitely, it would be a good yield.
0:44:39 > 0:44:45If he got £575 a month, that would generate £6,900 a year,
0:44:45 > 0:44:49so his investment would make a 10% annual return.
0:44:49 > 0:44:56How much could the property make in rental income if Gary let three rooms to students?
0:44:56 > 0:44:59Based on the house being rented as a three-bedroom property,
0:44:59 > 0:45:01you'd achieve £50 per week, per room.
0:45:01 > 0:45:05For a student let, you'd be looking around about £55 per week, per room.
0:45:05 > 0:45:08That's exactly in line with what I thought.
0:45:08 > 0:45:11I did a bit of market research before I purchased the property,
0:45:11 > 0:45:16with regard to student lets, and that's pretty much in line with what I thought. Pleased with that.
0:45:17 > 0:45:23That's a yield of over 11.5%, so no wonder Gary's happy.
0:45:23 > 0:45:26What's the resale value of the house now?
0:45:26 > 0:45:29More than the £67,000 that he's spent?
0:45:29 > 0:45:33I'd value this property between £75,000-£80,000.
0:45:33 > 0:45:38If he was going to finish it and sell it, I'd be saying around about between £80,000 and £85,000.
0:45:38 > 0:45:42I like the second one, 80-85. That would give me a reasonable return.
0:45:42 > 0:45:45I mean, the plan is not to sell it for quite a long time.
0:45:45 > 0:45:48This will form part of the future portfolio.
0:45:48 > 0:45:51Whether he decides to rent it out as a whole house
0:45:51 > 0:45:56or as individual rooms or sell it, Gary looks to be in the money here.
0:45:56 > 0:45:57What's next?
0:45:57 > 0:46:00I've got another property to look at.
0:46:00 > 0:46:03Very similar, mid-terrace, it's coming up for auction as well,
0:46:03 > 0:46:06so hopefully I might be at auction again some time.
0:46:06 > 0:46:09We'll keep an eye out for you, Gary.
0:46:09 > 0:46:11Good luck.
0:46:14 > 0:46:17This grand manor house in Kent
0:46:17 > 0:46:21was bought for £455,000 at auction by Mary Ann.
0:46:21 > 0:46:23She lives in London now,
0:46:23 > 0:46:26but actually grew up just down the road.
0:46:26 > 0:46:30I spent most of my childhood in the area and I got married up the road
0:46:30 > 0:46:32about three and a half years ago, opposite.
0:46:32 > 0:46:37She is now a property developer and is going to need all her expertise
0:46:37 > 0:46:41to turn this old farm into her new dream home.
0:46:46 > 0:46:48When we first returned the property
0:46:48 > 0:46:50was a long way from being habitable,
0:46:50 > 0:46:55but a massive effort had gone into a very sensitive renovation,
0:46:55 > 0:46:57mainly on the beautiful woodwork throughout.
0:46:59 > 0:47:03We realised that the woodwork on the doors, that was amazing.
0:47:03 > 0:47:06We could keep those, we could work with them.
0:47:06 > 0:47:09And as we cleared up the other elements of the woodwork...
0:47:09 > 0:47:12You can see the dais beams, and uncovering those
0:47:12 > 0:47:16and the beautiful detail in those, that was really exciting.
0:47:16 > 0:47:22As the house is Grade II listed, Mary Ann had to liaise closely with the local conservation office.
0:47:22 > 0:47:25They had to approve every single detail of the renovation.
0:47:25 > 0:47:29We're using a lot of the traditional lime mortar,
0:47:29 > 0:47:33lath and plaster materials where we're actually repairing works.
0:47:33 > 0:47:40And when we have been able to get new, we've gone for local oak as much as possible.
0:47:40 > 0:47:44Mary Ann had also been busy adding en-suite bathrooms to some of the bedrooms,
0:47:44 > 0:47:48so there was no need to run down all those stairs in the middle of the night.
0:47:48 > 0:47:52The renovation's been done by a local builder Charlie.
0:47:52 > 0:47:56He and his team made a discovery, a 40ft well.
0:47:56 > 0:47:58Mary Ann hoped to tap into the natural resource
0:47:58 > 0:48:03to provide water for the whole house, including the new bathroom suite.
0:48:13 > 0:48:20Another revelation was some very rare wood panelling, dating back to the 15th century.
0:48:20 > 0:48:23It was originally the end wall of the manor's great hall.
0:48:26 > 0:48:30Mary Ann had never intended to rush this project.
0:48:30 > 0:48:34It was a real labour of love, but there was some light at the end of the tunnel.
0:48:34 > 0:48:40I bought the place about 12 months ago, and we were hoping to be in by now.
0:48:40 > 0:48:45I think we've probably got another four or five months until the property's ready.
0:48:45 > 0:48:48This'll probably be the period when things move quickly.
0:48:48 > 0:48:51I love to be around at the moment because, you know,
0:48:51 > 0:48:54a day will go by, I'll come back in and a bathroom's done.
0:48:54 > 0:48:56It's just all starting to come together.
0:48:56 > 0:49:01Eight months since we last saw Mary Ann.
0:49:01 > 0:49:06We're back to see the finished product and it has certainly all come together.
0:49:16 > 0:49:21The back now has a new patio area and a lovely lawn is taking shape.
0:49:24 > 0:49:27Mary Ann and husband, Martin, moved in few months ago,
0:49:27 > 0:49:31so let's see how the interior looks now.
0:49:34 > 0:49:37Inside, the house has been beautifully done,
0:49:37 > 0:49:40with many of the original timbers restored,
0:49:40 > 0:49:44including that 15th-century feather panelling.
0:49:50 > 0:49:55There are also plenty of modern facilities incorporated into the property.
0:49:55 > 0:49:58You've just got to know where to look.
0:49:58 > 0:50:01And they've made a great feature of the well.
0:50:06 > 0:50:11And while there are not many timbers in the kitchen, it's been equipped to a very high standard.
0:50:11 > 0:50:16The overall impression the house conveys is of the rich, warm textures of the wood.
0:50:21 > 0:50:25Mary Ann and Martin have thoroughly enjoyed watching their house develop.
0:50:25 > 0:50:29Nearly every week you'd come down there was something different.
0:50:29 > 0:50:34It was just very exciting because we'd had to wait so long for the planning permissions.
0:50:34 > 0:50:38Suddenly, we had the go ahead and everyone was pushing to make it happen yesterday.
0:50:38 > 0:50:41It was just amazing how quickly it all came together.
0:50:42 > 0:50:44And the wait's been worth it.
0:50:44 > 0:50:46Oh, we love it.
0:50:46 > 0:50:49It just feels... It feels homely.
0:50:49 > 0:50:54It's large, but it just, you know, it works as a house.
0:50:54 > 0:50:56And what a house!
0:50:56 > 0:51:00We've got seven bedrooms. Our bedroom has an en suite shower room
0:51:00 > 0:51:06and we have two bathrooms - one very, very glamorous bathroom
0:51:06 > 0:51:10and then we have a shower room downstairs.
0:51:10 > 0:51:13And then we've also got loos and toilets in a couple of the rooms.
0:51:13 > 0:51:18So, basically, we've got six toilets and four bathing facilities.
0:51:19 > 0:51:23A very impressive finish all round, but with such an historic,
0:51:23 > 0:51:27Grade II Listed property, some compromises had to be made.
0:51:27 > 0:51:30They had to ensure the plumbing for those bathrooms was concealed,
0:51:30 > 0:51:34so some of the washrooms had to be squeezed into small spaces.
0:51:34 > 0:51:38You can't just run pipes down the outside of this house!
0:51:42 > 0:51:49It's been a real team effort, with skilled craftsmen working to restore the former glory here.
0:51:49 > 0:51:54It's the little touches that stand out, like this stained glass for the coat of arms.
0:51:56 > 0:52:01We've had brilliant tradespeople and builders, obviously, headed up by Charlie.
0:52:01 > 0:52:07We've become close friends with Charlie. We've even named our puppy after him.
0:52:07 > 0:52:09He put together a good crew of people,
0:52:09 > 0:52:12some of whom we've been working with directly,
0:52:12 > 0:52:15most of them local, which was important to us.
0:52:18 > 0:52:21For Mary Ann and Martin, it was important
0:52:21 > 0:52:24to keep the character of the original building very much alive.
0:52:24 > 0:52:29By not hanging heavy curtains or large blinds over the beautiful windows, they've let the simple,
0:52:29 > 0:52:33natural colours enhance a richly textured atmosphere.
0:52:33 > 0:52:36But, as it's Grade II Listed, the windows are only single glazed,
0:52:36 > 0:52:41so keeping the house warm required ingenious solutions.
0:52:43 > 0:52:45We've done a lot of insulating.
0:52:45 > 0:52:48We've put in a ground-source heat pump.
0:52:48 > 0:52:53We've done under-floor heating everywhere. We've modernised it from that point
0:52:53 > 0:52:55of view to make it very comfortable.
0:52:55 > 0:52:59We're expecting it to be very warm and quite economical.
0:53:00 > 0:53:04It's a large house to heat, so I'm sure any savings will be appreciated.
0:53:04 > 0:53:08You may remember, they paid 455,000 for the house at auction.
0:53:08 > 0:53:14Having taken on such a mammoth restoration, the team have had to liaise closely with the conservation
0:53:14 > 0:53:19officer to ensure the strict, correct procedures were followed to the letter.
0:53:19 > 0:53:22In this particular room, we have big supporting oak.
0:53:22 > 0:53:26That had to be pretty good quality oak.
0:53:26 > 0:53:31It's a question of making sure that things aren't contradicting.
0:53:31 > 0:53:36At the same time, with the panelling here, we weren't permitted to sort of
0:53:36 > 0:53:41actually make it all match, so you can see clearly, this is the old bit and this is the new bit.
0:53:41 > 0:53:44So it's making sure you don't confuse the periods of time.
0:53:46 > 0:53:52As the refurbishment progressed, Mary Ann made a decision to use only the best-quality materials.
0:53:52 > 0:53:58She had anticipated spending up to 300,000, so does she know how much it's actually cost?
0:53:58 > 0:54:00Did she go over her budget?
0:54:00 > 0:54:05I think you could say budget, there was no budget, because...
0:54:05 > 0:54:08it became a different project.
0:54:08 > 0:54:13It became a love and a passion, and it puts it into a totally different concept, so we did spend
0:54:13 > 0:54:18a lot more money than I would ever spend on anything probably again.
0:54:22 > 0:54:25Time to hear what two local estate agents make of the property.
0:54:29 > 0:54:33There's been an awful lot of Kentish farmhouses which have been renovated
0:54:33 > 0:54:37and improved since the boom of the market in the late '90s onwards.
0:54:37 > 0:54:42Some have been badly, some have been done well and some, a handful -
0:54:42 > 0:54:44this included - have been done immaculately.
0:54:44 > 0:54:47The finish is absolutely first class, in my opinion.
0:54:47 > 0:54:50They spent a lot of money on the property,
0:54:50 > 0:54:53kept original features here as well, which makes it good.
0:54:53 > 0:54:56The well was unusual. Overall, very impressed.
0:54:56 > 0:55:00What I particularly like is that the character has been retained.
0:55:00 > 0:55:04We've got a lot of timbers here, we're got high-quality floorings,
0:55:04 > 0:55:06we've got tiles, we've got stained glass.
0:55:06 > 0:55:11The attention to detail is brilliant and it's a really good finish.
0:55:11 > 0:55:13I like the fact that they've utilised the space
0:55:13 > 0:55:17with seven double bedrooms and kept a lot of original features.
0:55:17 > 0:55:21The oak flooring's lovely. The beams are absolutely wonderful.
0:55:23 > 0:55:26So how much is the place now worth?
0:55:26 > 0:55:28Remember, they paid 455,000 at auction
0:55:28 > 0:55:32and their costs have been somewhere north of 300,000.
0:55:33 > 0:55:36If I were to put this property up for sale, I would certainly
0:55:36 > 0:55:40hope to achieve somewhere in the order of about £1.2 million.
0:55:40 > 0:55:43If I was to put the property up for sale in today's market,
0:55:43 > 0:55:45I would look at an asking price of £1.2 million.
0:55:45 > 0:55:50Wow! Even if the budget has stretched to 500,000,
0:55:50 > 0:55:53that still means about £250,000 gross profit here.
0:55:53 > 0:55:55Happy?
0:55:55 > 0:56:01Yeah, I think that's a fair price for the state it's in right at this moment.
0:56:01 > 0:56:06- That's about what we expected. - With that valuation, are they tempted to sell?
0:56:06 > 0:56:07HE LAUGHS
0:56:07 > 0:56:12- No chance!- Would they ever leave this house?- No.- No.
0:56:12 > 0:56:15Mary Ann has been hands on with this project right from the beginning.
0:56:15 > 0:56:20She has seen the house stripped right back to its bare bricks and then expertly rebuilt.
0:56:20 > 0:56:24Now it's complete, that must have been a great advantage.
0:56:24 > 0:56:29It makes a huge difference, because you become really attached to it, really attached.
0:56:29 > 0:56:32Going through the journey
0:56:32 > 0:56:36and gradually sort of growing into it as we went through the journey
0:56:36 > 0:56:40has just made us want to be here the whole time.
0:56:42 > 0:56:49Well, that's it for this show. Join us next time for more tales from the frontline of property developing.
0:56:49 > 0:56:53- So make sure you join us then for more Homes Under The Hammer. - Bye for now.- See you then.
0:57:13 > 0:57:17Subtitles by Red Bee Media Ltd
0:57:17 > 0:57:21E-mail subtitling@bbc.co.uk