0:00:02 > 0:00:05There is nothing like the thrill of the auction room.
0:00:05 > 0:00:08With all those fast-paced bids and pounding hearts,
0:00:08 > 0:00:10the atmosphere can be electric.
0:00:10 > 0:00:13So join us now on a roller-coaster ride
0:00:13 > 0:00:15as we follow three properties that went under the hammer.
0:00:42 > 0:00:45Whether it's flats in Faversham, a semi in Surrey
0:00:45 > 0:00:47or a bolt hole in Bolton,
0:00:47 > 0:00:49the auctions could have what you're looking for.
0:00:49 > 0:00:52Absolutely and today we'll meet more people
0:00:52 > 0:00:55who hope to have found their perfect properties.
0:00:55 > 0:00:57Let's see what tickled their fancy.
0:00:58 > 0:01:00There's an attic conversion in Cornwall
0:01:00 > 0:01:02worth getting excited about.
0:01:02 > 0:01:06I reckon that is going to be the crown of this property.
0:01:08 > 0:01:10I do like to be beside the sea
0:01:10 > 0:01:12but I'm not sure about this property in Margate.
0:01:13 > 0:01:17Even I think this is way out of most people's league.
0:01:17 > 0:01:22This house in Telford is not sporting the latest interior design style.
0:01:23 > 0:01:27That is not some funky kind of wallpaper, that's damp.
0:01:29 > 0:01:32All these properties have been sold at auction
0:01:32 > 0:01:34and we find out who bought them and how much they paid
0:01:34 > 0:01:36when they went under the hammer.
0:01:45 > 0:01:50I'm in Saltash on border of Devon and Cornwall
0:01:50 > 0:01:54and that is the Tamar Bridge, which links the two counties.
0:01:54 > 0:01:58I'm here to see a property which has that as a view.
0:01:58 > 0:02:02At a guide price of £125,000, let's take a look.
0:02:02 > 0:02:05# Building a bridge to your heart... #
0:02:05 > 0:02:08Completed in 1961,
0:02:08 > 0:02:12the Tamar road bridge has since been strengthened and widened
0:02:12 > 0:02:14to accommodate the steady stream of traffic
0:02:14 > 0:02:16passing between Devon and Cornwall.
0:02:16 > 0:02:19It sits alongside Brunel's Royal Albert Bridge,
0:02:19 > 0:02:21which was built in 1859
0:02:21 > 0:02:25and is considered one of his greatest railway achievements.
0:02:26 > 0:02:29# Building a bridge to your heart. #
0:02:29 > 0:02:33The house was first bought in 1870
0:02:33 > 0:02:36by the family that subsequently owned it
0:02:36 > 0:02:39for nearly 100 years until 1964.
0:02:39 > 0:02:42Well, this is it. Let's take a look inside.
0:02:42 > 0:02:50# Love me tender Love me sweet... #
0:02:50 > 0:02:53That's an incredible length of time to own a property
0:02:53 > 0:02:56and it looks like it's been loved since then, too.
0:02:56 > 0:03:00The outside seems in good condition, with new windows and doors.
0:03:00 > 0:03:03Although the cladding might not be to everyone's taste,
0:03:03 > 0:03:05it does make for easy maintenance.
0:03:05 > 0:03:09And let's not forget its proximity to the bridge, the estuary
0:03:09 > 0:03:11and those truly stunning views.
0:03:11 > 0:03:18# Love me true All my dreams fulfil. #
0:03:18 > 0:03:21OK. Nice to have that little entrance porch, there,
0:03:21 > 0:03:24then down a fairly long corridor.
0:03:24 > 0:03:25Unusual layout this.
0:03:25 > 0:03:28You've got a bathroom there and the sitting room there.
0:03:28 > 0:03:31That's not weird but that is slightly odd,
0:03:31 > 0:03:33although I suppose it's centrally located.
0:03:33 > 0:03:37Stairs up to the bedrooms, then through into the kitchen.
0:03:37 > 0:03:40Not a bad sized space
0:03:40 > 0:03:43but how about this for a bit of kitchen design?
0:03:43 > 0:03:45I do not like the way you have to squeeze through that.
0:03:45 > 0:03:48It nearly, nearly works.
0:03:48 > 0:03:51Well, no, actually it doesn't. It's dreadful.
0:03:55 > 0:03:59I speak as I find and this really does have to change.
0:03:59 > 0:04:02The whole lot needs to be removed and replanned.
0:04:02 > 0:04:04Having said that, it's a great space to work with
0:04:04 > 0:04:07and the fireplace makes a wonderful focal point.
0:04:07 > 0:04:10But that bathroom, it's not really ideal, is it?
0:04:10 > 0:04:13I wonder if it could be moved upstairs?
0:04:15 > 0:04:19So upstairs, two really good-sized bedrooms
0:04:19 > 0:04:23but it's not the bedrooms that get me excited - more of that in a second.
0:04:23 > 0:04:24Here they are, absolutely huge
0:04:24 > 0:04:27and the good news, views onto the estuary, there.
0:04:27 > 0:04:30I mean, this is actually a bit too big to be a bedroom.
0:04:30 > 0:04:33I think at some stage it's probably been a lounge.
0:04:33 > 0:04:36Space here, potentially, to put a bathroom?
0:04:36 > 0:04:40I think so but let me show you what I've just seen.
0:04:41 > 0:04:45Up there is a loft to die for.
0:04:45 > 0:04:49It hasn't been converted but other houses in the street have put a dormer in
0:04:49 > 0:04:51or a Velux or something like that.
0:04:51 > 0:04:53Judging by the head height in there,
0:04:53 > 0:04:57I reckon that is going to be the crown of this property.
0:04:59 > 0:05:03And it will have views fit for a king.
0:05:03 > 0:05:08With all that extra space, you could definitely bring the bathroom upstairs.
0:05:08 > 0:05:13At the back, there's a little garden, a huge garage and a greenhouse
0:05:13 > 0:05:15but if you knocked down those two structures,
0:05:15 > 0:05:18you'd have a garden of much better proportions.
0:05:19 > 0:05:23Time to hear what a local estate agent makes of the house.
0:05:25 > 0:05:28First impressions after seeing the house today,
0:05:28 > 0:05:31it's a very popular area, potential for conversion,
0:05:31 > 0:05:34but, you know, needs some work inside
0:05:34 > 0:05:37but could certainly be a very nice property here.
0:05:38 > 0:05:43Let's talk figures. How much could someone make if they were to renovate
0:05:43 > 0:05:44and rent this out?
0:05:44 > 0:05:50I think we could achieve somewhere between £595 and £625 per calendar month.
0:05:50 > 0:05:53What about resale?
0:05:53 > 0:05:55A few of the properties along the terrace here
0:05:55 > 0:05:58have converted into the loft to create four bedrooms.
0:05:58 > 0:06:01If you were to sell it as four bedrooms,
0:06:01 > 0:06:03you could look at anything up to £250,000.
0:06:03 > 0:06:07Currently as a two bed, probably around 200,000.
0:06:07 > 0:06:09That's a pretty good margin,
0:06:09 > 0:06:14especially when the average cost of a loft conversion is around £30,000.
0:06:14 > 0:06:19How would those additional bedrooms affect the rental income?
0:06:19 > 0:06:22A four-bedroom, end of terrace property
0:06:22 > 0:06:27would achieve somewhere between £650 and £700 per calendar month.
0:06:28 > 0:06:34So a house which has potential to redevelop, reconfigure
0:06:34 > 0:06:36and, well, potentially make lots of money from.
0:06:36 > 0:06:39But I don't think that's why somebody will buy it.
0:06:39 > 0:06:41I think it's because of that view.
0:06:41 > 0:06:43Let's find out what happened at the auction.
0:06:46 > 0:06:49Guided at 125. It's not going to start at less than 100.
0:06:49 > 0:06:52Thank you. 100. We're away. And five.
0:06:52 > 0:06:55- Ten.- 15.- 115.
0:06:55 > 0:06:58120. 125.
0:06:58 > 0:07:01130. 132.
0:07:01 > 0:07:03134 I've got. 134?
0:07:03 > 0:07:04- 135.- 5.
0:07:04 > 0:07:10135. 135. Would a half help? 135 and a half.
0:07:10 > 0:07:13Last chance. Here we go. At 135. The lady here has it.
0:07:13 > 0:07:14Being sold.
0:07:14 > 0:07:17Ooh-oh! Right at the back.
0:07:17 > 0:07:21136. Was that a rude word, madam?
0:07:21 > 0:07:23I think it was.
0:07:23 > 0:07:25136 and a half. 137.
0:07:25 > 0:07:27137 and a half.
0:07:28 > 0:07:30138. 138 and a half.
0:07:30 > 0:07:33Anyone else want to pick on this poor lady?
0:07:33 > 0:07:36My last look round at 138 and a half. All done?
0:07:36 > 0:07:39Selling, then, at 138 and a half.
0:07:40 > 0:07:42Madam. Congratulations.
0:07:43 > 0:07:45After that tough auction room battle,
0:07:45 > 0:07:51the final successful bid of £138,500 was made by Janey.
0:07:54 > 0:07:55Whoo!
0:08:00 > 0:08:04I met her at the property to find out about her plans for the place.
0:08:05 > 0:08:09- Janey, lovely to meet you.- You, too. - Congratulations.- Thank you.
0:08:09 > 0:08:13- Why did you want to buy this place? - Erm, I've always lived in Saltash
0:08:13 > 0:08:17and wanted to live down the waterfront, never been able to afford to
0:08:17 > 0:08:20and it's close to my local pub,
0:08:20 > 0:08:23so, you know, it came up for auction and I went for it.
0:08:23 > 0:08:25- It's close to your local pub?- Yes.
0:08:25 > 0:08:28My local's just two minutes round the corner
0:08:28 > 0:08:30but I actually live at the top of the town,
0:08:30 > 0:08:35which is a £4 taxi ride, so it'll save me a fair bit, hopefully.
0:08:36 > 0:08:38- So you bought...- Over a few years.
0:08:38 > 0:08:42- So you bought the house to save you the taxi ride home.- Basically, yeah.
0:08:42 > 0:08:43How fantastic is that?
0:08:43 > 0:08:47This is an area that Janey knows particularly well.
0:08:48 > 0:08:51I've been familiar with it all my life.
0:08:51 > 0:08:54Erm, yes, it's just like something you always,
0:08:54 > 0:08:57as you're going up and down, you think, I'd like to live there.
0:08:58 > 0:09:01Going to the auction that day made it all possible.
0:09:01 > 0:09:06But it wasn't just the location that made youth worker Janey want to live here.
0:09:06 > 0:09:09- Are you a biker?- Absolutely.
0:09:09 > 0:09:11- So what sort of bike do you ride? - A Triumph Bonneville.
0:09:11 > 0:09:13- Oh, a proper bike.- A real one, yes. - Wow.
0:09:13 > 0:09:17The house comes with a workshop, so will that be useful for your bikes?
0:09:17 > 0:09:20That is definitely for the bikes.
0:09:20 > 0:09:23If it didn't have that, I wouldn't have bought the house.
0:09:23 > 0:09:24- Really?- Yeah.
0:09:24 > 0:09:27So you bought it because it's got somewhere to store your bikes?
0:09:27 > 0:09:30Yeah, I've always wanted to live down here
0:09:30 > 0:09:32but if there was no access for me to put the bikes
0:09:32 > 0:09:36and have a workshop, there wouldn't have been any point.
0:09:36 > 0:09:40So workshop aside, why did you like the house?
0:09:40 > 0:09:43It just had such a warm, friendly vibe about it.
0:09:43 > 0:09:46There was no negativity and it was light
0:09:46 > 0:09:50and it was just like, "Ah, yeah, this is my house."
0:09:51 > 0:09:54This house isn't Janey's first acquisition.
0:09:54 > 0:09:58She bought her first property for £5,000 when she was just 17.
0:09:58 > 0:10:03She later sold it on at a profit and something tells me there's more.
0:10:04 > 0:10:08I've got the house that I live in now, that I bought 10 years ago,
0:10:08 > 0:10:10- and then I bought a field. - A field?- A field.
0:10:10 > 0:10:14- Why?- Because it was there and the view is amazing,
0:10:14 > 0:10:16right over the Tamar valley - amazing view.
0:10:16 > 0:10:19- What do you do with the field? - I had a party up there last year,
0:10:19 > 0:10:23- about, I don't know, 130, 140 people.- Wow.
0:10:23 > 0:10:27So tents and music, bonfire, bagpipes.
0:10:27 > 0:10:29Not this year because of the house.
0:10:29 > 0:10:33- So it's a party field?- Basically. A chill-out field, for the moment.
0:10:34 > 0:10:37But Janey won't have time for her chill-out field
0:10:37 > 0:10:39while renovations are happening.
0:10:39 > 0:10:41She wants to make downstairs open plan
0:10:41 > 0:10:43and fit a new kitchen.
0:10:43 > 0:10:45That bathroom will be moved upstairs
0:10:45 > 0:10:48and she may even create an extra bedroom in the loft space.
0:10:50 > 0:10:53All sounds like a lot of work
0:10:53 > 0:10:55and she's given herself just four months to do it
0:10:55 > 0:10:58and she needs to sell her current house first.
0:10:59 > 0:11:03- What's the budget?- The budget is,
0:11:03 > 0:11:06right, wincey, wincey, about £30,000.
0:11:06 > 0:11:08- Wincey, wincey?- Yeah.
0:11:08 > 0:11:10It's a bit, "Ooh." So we'll see.
0:11:10 > 0:11:13If there's anything left after 30,000, we'll have another party.
0:11:14 > 0:11:17And if the money's run out,
0:11:17 > 0:11:20then I'll have to live in it as it is and do it as I go.
0:11:20 > 0:11:24- You can go and live in your field. - I could go in a caravan, yeah.
0:11:24 > 0:11:25I can do.
0:11:26 > 0:11:30Luckily for Janey, a friend has offered her a place to stay
0:11:30 > 0:11:33whilst the property is being renovated
0:11:33 > 0:11:36but once the work is completed, will she be tempted to rent this out
0:11:36 > 0:11:39and buy another?
0:11:39 > 0:11:41I feel like it's my home now. It's really weird.
0:11:41 > 0:11:44But I bought it to live in because I want to live here.
0:11:44 > 0:11:48I don't want to rent it out or sell it at all, no.
0:11:48 > 0:11:50It's going to be my home.
0:11:50 > 0:11:56# It's my life, it's now or never... #
0:11:57 > 0:12:00Of course, the other big bonus of this place
0:12:00 > 0:12:02is that Janey can walk to her local pub.
0:12:05 > 0:12:09# It's my life. #
0:12:09 > 0:12:12So there's a great reason to buy a house if I ever heard one.
0:12:12 > 0:12:14When the bell rings at Janey's local,
0:12:14 > 0:12:17she doesn't need to call a taxi, she can just walk home.
0:12:17 > 0:12:21But has the bell tolled for the downstairs loo
0:12:21 > 0:12:24and when will she be calling time on the renovation?
0:12:24 > 0:12:26You can find out later in the show.
0:12:29 > 0:12:31# Down to Margate
0:12:32 > 0:12:35# Don't forget your buckets and spades and cossies and all
0:12:35 > 0:12:38# Down to Margate
0:12:38 > 0:12:41# We'll have a pill of jellied eels at the cockle stall. #
0:12:41 > 0:12:44Welcome to Margate, a resort town on the Kent coast
0:12:44 > 0:12:47once the holiday destination of choice
0:12:47 > 0:12:50for Londoners looking to swap the city for the seaside.
0:12:50 > 0:12:54Margate's picture postcard beauty is now a little faded
0:12:54 > 0:12:57but the town is undergoing a regeneration programme
0:12:57 > 0:13:00which includes the construction of a contemporary arts centre,
0:13:00 > 0:13:02the Turner Gallery.
0:13:02 > 0:13:06# You can keep the Costa Brava I'm telling you, mate, I'd rather
0:13:06 > 0:13:09# Have a day down Margate With all me family. #
0:13:10 > 0:13:12I'm in the Old Town of Margate today,
0:13:12 > 0:13:15very close to the seafront and the high street
0:13:15 > 0:13:17and I'm here to see this three-storey building.
0:13:17 > 0:13:20Apparently, there used to be a shop on the ground floor,
0:13:20 > 0:13:24which you can see on some of the other properties over there.
0:13:24 > 0:13:27But this was converted into flats in the late 1980s.
0:13:27 > 0:13:31It went to auction with a guide of just £60-70,000,
0:13:31 > 0:13:33so let's be nosy and have a look around.
0:13:37 > 0:13:41Around here, you might expect a single-bedroom flat to sell for that
0:13:41 > 0:13:44but this property boasts not one but three flats.
0:13:44 > 0:13:46It certainly sounds tempting
0:13:46 > 0:13:49but is there a good reason for such a low guide price?
0:13:50 > 0:13:53I've walked straight in to the middle flat in this building
0:13:53 > 0:13:55and I've got to say, to the untrained eye,
0:13:55 > 0:13:58it would look devastatingly awful.
0:13:58 > 0:14:03I've got to admit, even I think this is way out of most people's league.
0:14:03 > 0:14:05In fact, this sort of auction property
0:14:05 > 0:14:07would put most people off.
0:14:07 > 0:14:10What I can tell is that somebody's already been here
0:14:10 > 0:14:11and started the work.
0:14:11 > 0:14:14They've already gutted it, stripped it out.
0:14:14 > 0:14:17Quite a lot of the work was already started.
0:14:17 > 0:14:19A lot of the piping has been laid.
0:14:19 > 0:14:22So whoever takes this on will need to finish the job
0:14:22 > 0:14:27but when you look closely, you can see damp has gone in,
0:14:27 > 0:14:30this wall over here is slightly bowing.
0:14:30 > 0:14:32I think there's been a problem with a leaky gutter,
0:14:32 > 0:14:36so lots of water will have been running down this building -
0:14:36 > 0:14:39a lot for somebody to take on board.
0:14:39 > 0:14:43I've got to say, there's nothing really rosy about this building
0:14:43 > 0:14:46that I can tell you about at this stage.
0:14:46 > 0:14:48# But you'd better stand clear
0:14:48 > 0:14:52# When the walls come tumbling, tumbling
0:14:52 > 0:14:56# Crumbling tumbling down. #
0:14:56 > 0:14:59The middle flat consists of a sitting room with a kitchen to the rear.
0:14:59 > 0:15:03Well, they call it a kitchen but there are no fixtures and fittings.
0:15:03 > 0:15:07There are another two rooms which could be a bedroom and a bathroom.
0:15:07 > 0:15:10In this condition, I'd say this flat is unmortgageable.
0:15:11 > 0:15:15# The walls come tumbling down... #
0:15:15 > 0:15:17Let's take a look at the top floor.
0:15:17 > 0:15:21Up here, another flat in the same sort of state.
0:15:21 > 0:15:23There's four rooms on the same level.
0:15:23 > 0:15:29Now I know this was converted some time ago and it may not be compliant with current building regulations
0:15:29 > 0:15:32regarding sound and fire proofing between the flats,
0:15:32 > 0:15:36so that is something you may need to address when renovating these.
0:15:37 > 0:15:41The four rooms, which presumably were once a sitting room, kitchen,
0:15:41 > 0:15:45bedroom and bathroom, are in a similar condition to the flat below.
0:15:45 > 0:15:49# The walls come tumbling, tumbling
0:15:49 > 0:15:50# Down... #
0:15:50 > 0:15:54Finally, it's back downstairs to the third flat,
0:15:54 > 0:15:56which is accessed from the back.
0:15:56 > 0:16:01There are rooms on the basement level and stairs to another two rooms on the ground floor.
0:16:01 > 0:16:05This flat has also been stripped back to its bare bones
0:16:05 > 0:16:08but it does have the advantage of a little outside space.
0:16:10 > 0:16:13But the garden, like the flats, is a mess
0:16:13 > 0:16:15and I've spotted a potential problem.
0:16:17 > 0:16:21One thing I've noticed is part of flat one and two
0:16:21 > 0:16:23goes over this private road or driveway.
0:16:23 > 0:16:28Now there is shared access between several properties,
0:16:28 > 0:16:29including this one.
0:16:29 > 0:16:33But if you don't own the land under part of your property,
0:16:33 > 0:16:35then it's what's called a flying freehold,
0:16:35 > 0:16:39which can cause problems obtaining a mortgage in the future.
0:16:39 > 0:16:41So buyers beware.
0:16:44 > 0:16:47The guide price for this three-storey period property,
0:16:47 > 0:16:50which has previously been converted into three flats,
0:16:50 > 0:16:52was £60-70,000.
0:16:52 > 0:16:58So what's the best option? Renovate and rent out or do up and sell on?
0:16:58 > 0:17:00Time to ask a local estate agent for advice.
0:17:01 > 0:17:06I believe the property would be best kept as three individual flats,
0:17:06 > 0:17:10certainly for the rental potential and also resale in the future.
0:17:13 > 0:17:17Keeping it as three flats and renting them out could be the right choice
0:17:17 > 0:17:19but would they be snapped up and for how much?
0:17:21 > 0:17:24There is a very good demand in the area for one-bedroom properties.
0:17:24 > 0:17:27I would suggest that they would go onto the market
0:17:27 > 0:17:33at a rental figure of £350 to 375 per calendar month.
0:17:36 > 0:17:38If you decided to do up and sell on,
0:17:38 > 0:17:42what could the resale price of each of the three flats be?
0:17:42 > 0:17:46We do have concern that there are a lot of flats in the area.
0:17:46 > 0:17:50However, because it's in the Old Town, there's a lot of regeneration going on
0:17:50 > 0:17:53and a huge amount of investors are coming in from London,
0:17:53 > 0:17:57people looking for holiday homes, I do believe that this will appeal to both markets.
0:17:57 > 0:18:02I would recommend a sale price for each flat of approximately £55,000.
0:18:06 > 0:18:08So lots of work needed with this property
0:18:08 > 0:18:12but a guide price of £60-70,000 for three flats?
0:18:12 > 0:18:15Did that attract the bidders or did it put them off?
0:18:15 > 0:18:19Who made the final bid? Let's find out when we head to auction.
0:18:19 > 0:18:22It's three flats, total refurbishment,
0:18:22 > 0:18:24guided at £60-70,000.
0:18:26 > 0:18:29£60,000 to start me. Three flats. 20,000 a flat.
0:18:29 > 0:18:31£60,000 is bid.
0:18:31 > 0:18:35At £60,000 I'm bid. 62, if it helps.
0:18:35 > 0:18:3962 I'm bid and 65? 65 is bid and 67?
0:18:39 > 0:18:4270 I have. A gentleman bidding, sitting on the floor.
0:18:42 > 0:18:4572 I'm bid. 74 is bid. 76.
0:18:46 > 0:18:50You're out in blue. £74,000 I'm bid. 76 do I see?
0:18:50 > 0:18:54- £74,000 I'm...- 75.- 75.
0:18:54 > 0:18:5776? 76. At 77?
0:18:57 > 0:19:01At £77,000? Gentleman's bid sitting, at 76.
0:19:01 > 0:19:0377 on a fresh place.
0:19:03 > 0:19:05And 78? 78. And 80?
0:19:05 > 0:19:08At 82? 82. And 84?
0:19:08 > 0:19:1084. And 86.
0:19:10 > 0:19:12And 88?
0:19:12 > 0:19:13Three flats.
0:19:13 > 0:19:1886,000 I have on my left-hand side. At 88? 88 is bid.
0:19:18 > 0:19:1990 I have. And 92?
0:19:19 > 0:19:2292 is bid. And 95?
0:19:22 > 0:19:2595. 98. Is that a bid?
0:19:25 > 0:19:30No? At £95,000, then. For the first time being sold at £95,000.
0:19:30 > 0:19:35The second time at 95,000. The gentleman's bid on my left.
0:19:35 > 0:19:37Are you all out on the right?
0:19:37 > 0:19:40For the third and final time at £95,000. Are you all done?
0:19:40 > 0:19:44GAVEL BANGS Sold at 95,000. And your bidder's number is, please?
0:19:46 > 0:19:49Regular viewers may recognise the successful bidder.
0:19:49 > 0:19:53Kent-based builder Neil has been on Homes Under The Hammer before.
0:19:58 > 0:20:02Last time, he bought a dilapidated four-storey Regency house
0:20:02 > 0:20:03in Margate.
0:20:03 > 0:20:07After many years of neglect, he took on the challenge of restoring it.
0:20:11 > 0:20:14Neil uncovered many hidden period features
0:20:14 > 0:20:17and using his craftsmanship sensitively,
0:20:17 > 0:20:19restored the property to its former glory,
0:20:19 > 0:20:23giving this grand Georgian home a new lease of life.
0:20:26 > 0:20:29So these rather run-down flats are a bit of a contrast
0:20:29 > 0:20:30to say the least!
0:20:30 > 0:20:33I met Neil and his wife Freda at their new investment
0:20:33 > 0:20:37to find out why they'd chosen them as their next project.
0:20:40 > 0:20:43Neil, it's been a long time since I've seen you.
0:20:43 > 0:20:47- It's not been that long.- You've snuck back in with another property.
0:20:47 > 0:20:51- And Freda, I didn't get to meet you last time.- No, too busy last time.
0:20:51 > 0:20:54- So here we are again, Neil. - Yeah, starting all over again.
0:20:55 > 0:20:58Can I just say, out of all the properties I've seen on Homes Under The Hammer,
0:20:58 > 0:21:04I think this one is up there with... scaring me a little bit.
0:21:04 > 0:21:07I can't imagine where you're going to begin
0:21:07 > 0:21:09and why you wanted to buy this.
0:21:09 > 0:21:13Well, when I came to look at it first off,
0:21:13 > 0:21:16all the windows was boarded up and we only had a torch to look round.
0:21:16 > 0:21:20But I liked the area. I thought it could be quite a good area.
0:21:20 > 0:21:23It's in the Old Town, not exactly a booming place,
0:21:23 > 0:21:25but I liked where it was,
0:21:25 > 0:21:27so we thought, well, we'll set a figure on it
0:21:27 > 0:21:30and got it for 5,000 less than we was going to pay for it.
0:21:30 > 0:21:33- So good news for you. - And then when I came in,
0:21:33 > 0:21:36it wasn't as bad as I was imagining.
0:21:36 > 0:21:40- So you think this isn't as bad as what you thought it was?- No, no.
0:21:40 > 0:21:45- Freda, why didn't you try and stop him?- I never saw it until after he'd bought it.
0:21:45 > 0:21:46So what do you think of it?
0:21:46 > 0:21:48It'll be fine, it'll be fine.
0:21:48 > 0:21:51It looks bad because everything's been pulled out
0:21:51 > 0:21:53but structurally, it's quite sound.
0:21:53 > 0:21:56Some of the timbers look like they're rotting.
0:21:56 > 0:21:58We've had water in but again, it's nothing major.
0:21:58 > 0:22:02I haven't got to start taking the roof off and things like that.
0:22:02 > 0:22:04It's all quite simple, straightforward jobs.
0:22:04 > 0:22:09- So you're quite happy?- I'm happier than I was after I'd bought it.
0:22:09 > 0:22:11I thought, "What have I done?"
0:22:11 > 0:22:14But when we got in and looked round, I was impressed.
0:22:15 > 0:22:17Nothing to seems to faze Neil and Freda
0:22:17 > 0:22:20but then Neil does have plenty of experience under his belt,
0:22:20 > 0:22:23as he's worked as a builder all his life.
0:22:23 > 0:22:25He began property developing 8 to 10 years ago
0:22:25 > 0:22:27and has no plans to slow down.
0:22:29 > 0:22:32So no signs of retirement for you yet, then?
0:22:32 > 0:22:34- Not just yet, no.- No?- Not just yet.
0:22:34 > 0:22:37- You're happy being busy every day? - More than happy now.
0:22:37 > 0:22:38I can't wait to get started.
0:22:38 > 0:22:40Freda, shouldn't he be at home with you,
0:22:40 > 0:22:43enjoying your lives together as a couple?
0:22:43 > 0:22:45Ooh, definitely not.
0:22:46 > 0:22:48I'm quite happy doing what I'm doing, thank you.
0:22:49 > 0:22:52With the flying freehold investigated by his solicitor,
0:22:52 > 0:22:55Neil is raring to put his plans into action.
0:22:57 > 0:23:00So how are you going to convert these into the three flats?
0:23:00 > 0:23:03- Are you going to leave them as they are?- Very much so.
0:23:03 > 0:23:05There's not much we can change, anyway.
0:23:05 > 0:23:08We'll put in new bathrooms, because there's nothing there.
0:23:08 > 0:23:11New kitchens, new central heating, replastering them,
0:23:11 > 0:23:14sound proofing them as much as we can.
0:23:14 > 0:23:15We won't change them.
0:23:15 > 0:23:18It's a complete refurb but basically left as they are.
0:23:18 > 0:23:22- Are you going to check on the work, Freda?- Definitely. I have to bring the cakes over.
0:23:22 > 0:23:25They rely on me to bring the cakes and the coffee.
0:23:25 > 0:23:27- And do you?- Yeah.
0:23:27 > 0:23:31Neil and Freda have three children and 12 grandchildren,
0:23:31 > 0:23:33so they view this property as an investment for them.
0:23:34 > 0:23:37Let's talk about money. What's your budget for the work?
0:23:37 > 0:23:41Well, I think we're going to spend £8,000 on each flat
0:23:41 > 0:23:45and a couple of thousand pound on the staircase and the back garden.
0:23:45 > 0:23:48So we're looking at about £26,000 altogether.
0:23:48 > 0:23:51- And your timescale? - We've worked that out as well.
0:23:51 > 0:23:54- We think about ten weeks. - I love you, Neil.
0:23:54 > 0:23:57You're going to do that for that money in that short amount time?
0:23:57 > 0:24:01- Well, I wouldn't say bish, bash, bosh, but that sort of thing. - You've said it.
0:24:01 > 0:24:05- This is an investment for you and your family.- Yeah, yeah.
0:24:05 > 0:24:06Guys, good luck.
0:24:06 > 0:24:09I know if there's anybody around here that can do it, it's you.
0:24:09 > 0:24:12- I hope so.- Thank you very much. - Enjoy your cakes.
0:24:12 > 0:24:15And we'll be back to learn all about what happened.
0:24:15 > 0:24:18- OK, good. Thanks very much. - Lovely to meet you. Thank you.
0:24:19 > 0:24:22Neil and Freda are old hands at buying homes under the hammer
0:24:22 > 0:24:25and they're experienced property developers,
0:24:25 > 0:24:29so renovating an old building like this doesn't worry them.
0:24:29 > 0:24:32The question is will Neil ever slow down and retire?
0:24:32 > 0:24:36You can find out how these two get on later on in the show.
0:24:38 > 0:24:42Coming up, I'm in Telford, where the wallpaper leaves a lot to be desired.
0:24:43 > 0:24:46Every single wall has got this stuff on it.
0:24:48 > 0:24:52Did Neil and Freda face any surprises in Margate?
0:24:52 > 0:24:54We knew we'd had a problem with the roof
0:24:54 > 0:24:57but we didn't realise the extent we would have to go at this stage.
0:24:59 > 0:25:04But first, we return to Cornwall to find out what Janey has learnt.
0:25:04 > 0:25:05Never, ever, ever do it again.
0:25:05 > 0:25:07Ever, ever, ever, ever.
0:25:10 > 0:25:13# Born to be wild... #
0:25:15 > 0:25:19It's back to Cornwall now, where I met biker Janey.
0:25:19 > 0:25:22She purchased this house on the Saltash waterfront
0:25:22 > 0:25:26for £138,500.
0:25:30 > 0:25:33Janey had always wanted to live beside the estuary
0:25:33 > 0:25:38but she hasn't moved to the waterfront just for the invigorating sea air.
0:25:39 > 0:25:42- So why did you want to buy this place?- It's close to my local pub.
0:25:42 > 0:25:45It came for auction and I went for it.
0:25:47 > 0:25:51The property had a kitchen, lounge and bathroom downstairs.
0:25:54 > 0:25:57Upstairs, there were two bedrooms,
0:25:57 > 0:26:01and, most excitingly, attic space, crying out for conversion.
0:26:03 > 0:26:08So 13 months later, we're back. Let's have a look inside.
0:26:11 > 0:26:13# Wow, wow, wow, wow!
0:26:13 > 0:26:17# You got it You're wow, wow, wow, wow. #
0:26:17 > 0:26:20Well, it's certainly got the wow factor.
0:26:21 > 0:26:24Janey has removed the wall between the lounge and kitchen,
0:26:24 > 0:26:27flooding the room with light from the front windows
0:26:27 > 0:26:30and the newly installed French doors at the back.
0:26:34 > 0:26:36I just wanted a nice, big sociable room
0:26:36 > 0:26:39where you can have a meal, everyone can chat
0:26:39 > 0:26:42and everyone's just together, which is brilliant.
0:26:44 > 0:26:46The downstairs bathroom has gone
0:26:46 > 0:26:48and the stairs have been moved forward,
0:26:48 > 0:26:51creating space for a shower room on the first floor.
0:26:56 > 0:26:57# Wow, wow, wow, wow
0:27:01 > 0:27:05The huge master bedroom with the incredible views
0:27:05 > 0:27:07has now become Janey's lounge.
0:27:12 > 0:27:15And using space taken from that lounge,
0:27:15 > 0:27:18stairs have been put in, leading to the attic conversion.
0:27:20 > 0:27:24Well, the attic is my bedroom and my bathroom.
0:27:27 > 0:27:30The attic conversion feels airy and welcoming.
0:27:30 > 0:27:34It should be especially cosy on winter nights
0:27:34 > 0:27:37when Atlantic storms batter the Cornish coast.
0:27:39 > 0:27:44The renovation has undoubtedly been a major undertaking for Janey.
0:27:44 > 0:27:48What was the most daunting aspect for this Easy Rider?
0:27:48 > 0:27:49# Wow! #
0:27:49 > 0:27:52When I first got the keys and I took a bit of wallpaper off,
0:27:52 > 0:27:54I found the whole place was lined with asbestos.
0:27:54 > 0:27:58That was a bit like, "Oh, my God. No!"
0:27:58 > 0:28:02So I ran around the house for a while going, "Why me?"
0:28:02 > 0:28:06I panicked at first but I spoke to our council,
0:28:06 > 0:28:09they just said as long as I take it up to the proper place
0:28:09 > 0:28:13with it all bagged up properly, they'd take it from there
0:28:13 > 0:28:16and they'd put it into a great big airtight container, so...
0:28:16 > 0:28:17how easy was that?
0:28:18 > 0:28:21Finding asbestos in a property can be a worry,
0:28:21 > 0:28:24but in fact, there's no need to panic.
0:28:24 > 0:28:27Janey was right to contact her local authority.
0:28:27 > 0:28:29It's important to get their advice
0:28:29 > 0:28:32when it comes to removing and disposing of asbestos safely,
0:28:32 > 0:28:36which should really only be carried out by a specialist.
0:28:36 > 0:28:39Janey employed a team of local builders to carry out the rest of the work
0:28:39 > 0:28:42and friends and family helped with the decoration.
0:28:42 > 0:28:44I've done all the tiling.
0:28:44 > 0:28:47I put them up on the wall one evening
0:28:47 > 0:28:50after having maybe two or three glasses of wine
0:28:50 > 0:28:53and they were dreadful, so I ripped them all off.
0:28:53 > 0:28:57I ordered some more and they haven't arrived, so it'll have to wait until they do.
0:29:01 > 0:29:04Apart from the tiling, how long has the work taken?
0:29:05 > 0:29:08Originally, it was going to take about six months.
0:29:08 > 0:29:12I had sold my house, then that sale fell through.
0:29:12 > 0:29:14So it was one thing and then another.
0:29:14 > 0:29:18It's a year and a month down the line and this is as far as I've got.
0:29:18 > 0:29:22Not quite finished yet but it will be, directly, as they say.
0:29:25 > 0:29:32Janey's initial budget was £30,000 but this has shot up to £54,000.
0:29:33 > 0:29:37My original plan was not to have a loft conversion and the bathroom.
0:29:37 > 0:29:42So the budget, yeah, blown out the water, really, but worth it.
0:29:42 > 0:29:44So I don't think I've overspent
0:29:44 > 0:29:47but I have got no money left, basically!
0:29:49 > 0:29:52As for that all-important bike workshop,
0:29:52 > 0:29:55Janey has sensibly put that on the back burner.
0:29:55 > 0:29:58The bikes are not here at the moment. Well, one is.
0:29:58 > 0:30:02Rosie, she's stuffed at the back of the workshop, sulking.
0:30:02 > 0:30:06The others, I've rented a council garage
0:30:06 > 0:30:08and they'll be up there for a while yet.
0:30:08 > 0:30:12I've got to get that workshop sorted out and then I can get them in,
0:30:12 > 0:30:14rather than get them in and work around them.
0:30:14 > 0:30:16They're all right where they are.
0:30:17 > 0:30:23Janey has spent just over £192,000 buying and creating her dream home.
0:30:26 > 0:30:31We invited two local property experts along to give us their opinions.
0:30:33 > 0:30:35I feel the best selling feature of the property
0:30:35 > 0:30:37is the way the lounge is laid out
0:30:37 > 0:30:40and then having the views from the lounge to the river.
0:30:40 > 0:30:43So when you're sat there, you can enjoy the views
0:30:43 > 0:30:45across the river and up to the moors.
0:30:45 > 0:30:50It's not often that a roof conversion really flows well
0:30:50 > 0:30:51from the first floor.
0:30:51 > 0:30:54There's usually a stutter somewhere.
0:30:54 > 0:30:57But this one you walk onto the landing, around onto the stairs
0:30:57 > 0:31:00and up you go to a really well-worked space.
0:31:01 > 0:31:03What would the market value of this place be?
0:31:03 > 0:31:07I feel the resale value of the property in its current condition
0:31:07 > 0:31:10in the current market would be in the region of £215,000.
0:31:11 > 0:31:13If the first floor living room
0:31:13 > 0:31:16was turned into the bedroom and en-suite shower room
0:31:16 > 0:31:18that it's kind of aching to be,
0:31:18 > 0:31:24I think the house could well be worth £230-240,000.
0:31:26 > 0:31:30So despite Janey's overspend, these valuations could give her
0:31:30 > 0:31:34a pre-tax profit of at least £22,500.
0:31:35 > 0:31:38# Wow, wow, wow, wow! #
0:31:38 > 0:31:41The agents also believe the house could generate a rental income
0:31:41 > 0:31:44of between £600 and £700 per calendar month.
0:31:44 > 0:31:48Janey has no plans to sell or rent out her new home.
0:31:48 > 0:31:50The renovation has been a long, hard road.
0:31:50 > 0:31:53What lessons has she learnt?
0:31:54 > 0:31:56Never, ever, ever do it again.
0:31:56 > 0:31:58Ever, ever, ever, ever.
0:32:00 > 0:32:04And she won't have to, as Janey is finally able to relax
0:32:04 > 0:32:06and enjoy that gorgeous view.
0:32:06 > 0:32:10# But don't you know, honey child, I was born to be wild
0:32:10 > 0:32:13# And I could never settle down with you. #
0:32:20 > 0:32:24I'm in Manor Road in Telford, Shropshire.
0:32:24 > 0:32:27Unfortunately, though, I'm not here to see a manor house.
0:32:27 > 0:32:29To be honest, it's more of a minor house.
0:32:29 > 0:32:32It's not big, it's not grand
0:32:32 > 0:32:39but what's very interesting is that guide price of just £35,000.
0:32:41 > 0:32:44With that price tag, you should be a little bit suspicious
0:32:44 > 0:32:47That's chirpy cheap cheap for a two-bed property.
0:32:47 > 0:32:49Let's see what the reasons might be.
0:32:50 > 0:32:52Ooh. Straight away.
0:32:52 > 0:32:56That is not some funky kind of wallpaper, that's actually damp.
0:32:56 > 0:32:57Mm. That's not brilliant.
0:32:57 > 0:33:03But not a bad-sized living room, here, but more indication...
0:33:03 > 0:33:05Every single wall has got this stuff on it.
0:33:05 > 0:33:07Oh, OK.
0:33:07 > 0:33:10Bit of a clue, there. I shall investigate that later.
0:33:10 > 0:33:12But through here into the kitchen.
0:33:12 > 0:33:15It's a bad-sized space. It feels like a solid house.
0:33:15 > 0:33:19But, you know, it smells damp,
0:33:19 > 0:33:23there's real big signs of some water problem.
0:33:23 > 0:33:27There's stuff all over the floor here. So not... Everywhere.
0:33:27 > 0:33:29Not a bad-sized kitchen.
0:33:29 > 0:33:33But more importantly, I need to find out where this water's coming from.
0:33:35 > 0:33:37Water is dripping all over the house
0:33:37 > 0:33:41and there's mildew and damp on every wall on this level.
0:33:41 > 0:33:43Let's investigate upstairs.
0:33:44 > 0:33:47Well, it could be coming from the bathroom
0:33:47 > 0:33:49but that looks like it's been fairly recently done,
0:33:49 > 0:33:51so my guess is no.
0:33:51 > 0:33:52That's actually quite nice.
0:33:52 > 0:33:54Big double bedroom at the front,
0:33:54 > 0:33:57rear double bedroom here and there you go.
0:33:57 > 0:34:03No prizes for guessing it's coming from either a hole in the roof
0:34:03 > 0:34:07or, my guess is, some of the water pipes or the water tank in the loft
0:34:07 > 0:34:08has been leaking.
0:34:08 > 0:34:13It's a nightmare. When houses are left like this, they're uninhabited,
0:34:13 > 0:34:15especially over the winter, you get a pipe bursting,
0:34:15 > 0:34:20it pours down through the house and this black stuff is what happens.
0:34:20 > 0:34:24The key is if you're leaving a house, do turn the stopcock off
0:34:24 > 0:34:27and if you're buying a house in this kind of state,
0:34:27 > 0:34:30make sure that the floorboards and the joists haven't been damaged
0:34:30 > 0:34:33but what it really needs is just to dry out.
0:34:33 > 0:34:36# Love don't live here any more
0:34:36 > 0:34:42# Just emptiness and memories of what we had before. #
0:34:42 > 0:34:46Love may not live here any more but the mould is certainly thriving.
0:34:48 > 0:34:52There's more bad news outside, I'm afraid,
0:34:52 > 0:34:55because the property is actually of non-standard construction,
0:34:55 > 0:34:58which means it's unmortgageable, right?
0:34:58 > 0:35:03Well, there are various types of non-standard construction and some are better than others.
0:35:03 > 0:35:06Around here, two primary types.
0:35:06 > 0:35:10One is concrete with steel in it and the other is concrete alone.
0:35:10 > 0:35:13The concrete alone is generally a better bet
0:35:13 > 0:35:16and that's what this house is, so all might not be lost.
0:35:16 > 0:35:20But it needs to be checked out before you invest your money.
0:35:20 > 0:35:23So it's not as bad as it may seem
0:35:23 > 0:35:27and that £35,000 guide price is starting to look even more attractive.
0:35:29 > 0:35:31Round the back, there's a good-sized garden
0:35:31 > 0:35:33or should I say jungle?
0:35:33 > 0:35:37But that wouldn't take too much time to sort out.
0:35:39 > 0:35:43What will a local estate agent make of this non-standard construction?
0:35:43 > 0:35:46I invited one along to find out.
0:35:47 > 0:35:49'It's not too bad. It looks worse than it is, I think.
0:35:49 > 0:35:52'It's got the water damage but that's easily corrected.
0:35:52 > 0:35:54'It's not a bad size and it's a good project.'
0:35:54 > 0:35:59A big garden, a young family with small children, it's perfect
0:35:59 > 0:36:01because it's enclosed.
0:36:01 > 0:36:04What rental figure could this property earn?
0:36:04 > 0:36:07The rental market's really good.
0:36:07 > 0:36:11It would achieve £525 per calendar month once the work's done.
0:36:11 > 0:36:13And the sale value once renovated?
0:36:13 > 0:36:18Selling the property on should achieve £85,000 to £90,000.
0:36:21 > 0:36:23Well, yes, it does need a bit of work to sort it out
0:36:23 > 0:36:27but what you've got here potentially is a fantastic little property.
0:36:27 > 0:36:29A rental earner? Oh, yes.
0:36:29 > 0:36:33And for 35 grand, let's see who went for it at the auction.
0:36:34 > 0:36:35Lot number three.
0:36:35 > 0:36:38We move to Shropshire, to Telford, the Dawley district.
0:36:38 > 0:36:43A two-bedroomed, end town house. What is it? 35 to start?
0:36:44 > 0:36:4630, then. Start me at 30.
0:36:46 > 0:36:49Lot number three. 30, I'm going to say.
0:36:50 > 0:36:5330 I'm bid. Thank you. At £30,000.
0:36:53 > 0:36:5535 can I say now?
0:36:55 > 0:36:5835, thank you. At £35,000.
0:36:58 > 0:37:0240 is it now? At £35,000.
0:37:02 > 0:37:03I'll take 40.
0:37:03 > 0:37:08£40,000, the lady's bid, seated. At £40,000.
0:37:08 > 0:37:10At £40,000.
0:37:10 > 0:37:12I'll take one if it helps.
0:37:12 > 0:37:14Bid's at... It does. 41.
0:37:14 > 0:37:1642. 43.
0:37:16 > 0:37:1944, 45.
0:37:19 > 0:37:2046, 47.
0:37:20 > 0:37:2448, 49, 50.
0:37:24 > 0:37:28He's shaking his head. It's with you, madam, at £50,000.
0:37:28 > 0:37:3051 anywhere else?
0:37:31 > 0:37:33At 50. I'm selling it, then, at 50.
0:37:34 > 0:37:37At 50, then, for the first time.
0:37:37 > 0:37:39New bidder. 51.
0:37:39 > 0:37:4152, 53.
0:37:41 > 0:37:4454, 55.
0:37:44 > 0:37:4556.
0:37:46 > 0:37:4857, sir?
0:37:49 > 0:37:5057, 58.
0:37:52 > 0:37:5359?
0:37:55 > 0:37:5659.
0:37:56 > 0:38:0160. Shaking his head. Still with you, madam, at £60,000.
0:38:01 > 0:38:04At £60,000, then, I'm selling it.
0:38:04 > 0:38:06At 60, then, for the first time.
0:38:07 > 0:38:10At 60 for the second time.
0:38:10 > 0:38:12Third and final time.
0:38:12 > 0:38:1561. 62.
0:38:15 > 0:38:16Are you sure?
0:38:16 > 0:38:19At 62, then, lady's bid.
0:38:19 > 0:38:22First time at 62, second time at 62,
0:38:22 > 0:38:25third and final time...
0:38:25 > 0:38:27It's your lot, madam. Well done.
0:38:30 > 0:38:34The new owners with their successful bid of £62,000
0:38:34 > 0:38:37are property developing pros Mark and Mike.
0:38:37 > 0:38:40It was Mark's mum who did the bidding
0:38:40 > 0:38:42but it will be him and business partner Mike
0:38:42 > 0:38:44who'll be getting their hands dirty.
0:38:45 > 0:38:47- Congratulations.- Thank you. - Well done.
0:38:47 > 0:38:50Tell me why you wanted to buy this little place?
0:38:50 > 0:38:53Erm, very cheap.
0:38:53 > 0:38:55- OK.- That's the whole thing, really.
0:38:55 > 0:38:58It was the cheapest one, I think, in the auction at the time.
0:38:58 > 0:39:01- So er...- There's often a reason for that, though, isn't there?
0:39:01 > 0:39:04Yeah. As you can see, it's...
0:39:05 > 0:39:09- It's got a bit of mould.- Right. - But it's not too bad.
0:39:09 > 0:39:11It's structurally sound enough.
0:39:11 > 0:39:13Out of all the properties we've looked at,
0:39:13 > 0:39:15it dropped at the right price.
0:39:15 > 0:39:20And I guess the initial appearance would put some people off.
0:39:20 > 0:39:23- That's why we quite like them. - Right.
0:39:23 > 0:39:26We quite like the fact that they do look rough.
0:39:26 > 0:39:31If they're too desirable, you go to the auction, people pay silly money.
0:39:31 > 0:39:33So the ones that don't look quite so nice,
0:39:33 > 0:39:38- we tend to have a bigger chance of having a go at it.- Oh.
0:39:38 > 0:39:43And as long as the margins are there, you know, they tend to drop, don't they?
0:39:43 > 0:39:46Yeah, it's all about the margin in the end.
0:39:46 > 0:39:48As long as there's a good bit of profit to be made,
0:39:48 > 0:39:51it doesn't matter what it is and where it is.
0:39:51 > 0:39:53# Money, money, money, money
0:39:54 > 0:39:55# Money... #
0:39:55 > 0:39:59Keeping an eye on the bottom line has ensured Mark's family business
0:39:59 > 0:40:02has thrived during the economic downturn.
0:40:04 > 0:40:05# Money. #
0:40:05 > 0:40:07I initially started the business in '92,
0:40:07 > 0:40:10buying quite a lot of properties.
0:40:10 > 0:40:14- It probably got to sort of 35 houses maybe three years ago.- Wow.
0:40:14 > 0:40:16- Then Mike came in.- I came in, then.
0:40:16 > 0:40:19And since that point, we've got to about 60.
0:40:19 > 0:40:22I've been encouraging you to buy more, really.
0:40:22 > 0:40:24- You've got now about how many? - 63, now.
0:40:24 > 0:40:26- This is the 63rd.- Right.
0:40:26 > 0:40:29And do you have a strategy for what you buy?
0:40:29 > 0:40:33It's really trying to find houses in areas that will rent
0:40:33 > 0:40:36and as cheap as you can buy them, as well.
0:40:36 > 0:40:39The cheaper they are, the higher the rental return.
0:40:39 > 0:40:42You're pretty sure you've got tenants lined up already.
0:40:42 > 0:40:45- Yeah. I've already got someone who wants this.- For how much a month?
0:40:45 > 0:40:47- This one, 525.- Wow.
0:40:47 > 0:40:51- It's not bad.- So reasonable return for the investment.
0:40:51 > 0:40:54- Do you still look at properties before you buy them?- Every one.
0:40:54 > 0:40:57- I'm so happy to hear that. - You can't buy without looking.
0:40:57 > 0:40:59That's insane.
0:40:59 > 0:41:01Some people do and I get very cross with them.
0:41:01 > 0:41:03It's not my money but, you know.
0:41:03 > 0:41:06It's a massive risk to take, a massive, massive risk.
0:41:07 > 0:41:10Risky business is not Mark and Mike's style.
0:41:10 > 0:41:14The way this place was built may make it unmortgageable
0:41:14 > 0:41:17but they have experience of this type of property.
0:41:17 > 0:41:20- This is non-standard construction. Did you know that?- Yes.
0:41:20 > 0:41:23These ones are literally just solid concrete walls
0:41:23 > 0:41:25with lots of pebbles in -
0:41:25 > 0:41:29lots of pebbles and concrete and a solid wall.
0:41:29 > 0:41:34- And that's regarded as being OK? - It's mortgageable.- With most.
0:41:34 > 0:41:38The odd company doesn't like it but the majority of companies will lend.
0:41:38 > 0:41:40They're sturdy houses, just cold.
0:41:40 > 0:41:42# Money, money, money, money. #
0:41:43 > 0:41:47Time is money for Mark and Mike and they're keen to get started.
0:41:47 > 0:41:50So tell me what you're going to do it to sort it out?
0:41:50 > 0:41:52We'll put 4,000 into it.
0:41:52 > 0:41:55- Four?- Yeah. Yeah, four grand.
0:41:55 > 0:41:58- Five at top whack. Top whack. - Top. Maximum, yes.
0:41:58 > 0:42:02Wow. You think you can do this place up for five grand?
0:42:02 > 0:42:04What are you going to do for that?
0:42:04 > 0:42:07Bit of filler in the small hole upstairs.
0:42:07 > 0:42:11And this kitchen, it's much better than you think it is.
0:42:11 > 0:42:15- These units are pretty good, really, aren't they?- Solid.- Solid, yeah.
0:42:15 > 0:42:20They don't look nice but with new handles, you'll be surprised.
0:42:20 > 0:42:23- New sink?- Yes.- Yeah. I'll go with that.
0:42:23 > 0:42:26The mildew makes it look a lot worse than it is
0:42:26 > 0:42:30but really, a lick of paint and it'll look much better for it.
0:42:30 > 0:42:33So what kind of timescale for sorting this place out?
0:42:33 > 0:42:38- Mm, six weeks, I think.- I think we should be able to do that.
0:42:38 > 0:42:42We're going to have to let it dry for two or three weeks
0:42:42 > 0:42:45before we can do too much because the water's everywhere.
0:42:47 > 0:42:49So that's going to take some time to go out.
0:42:49 > 0:42:51- Well, good luck with it.- Thank you.
0:42:51 > 0:42:53- Nice to meet you both.- Thank you.
0:42:53 > 0:42:54And I wish you all the best.
0:42:56 > 0:43:01Well, Mark and Mike adopting a strategy of going for the most unattractive properties.
0:43:01 > 0:43:05Still, with 63 in their portfolio, they must be doing something right.
0:43:05 > 0:43:08Can they sort this place out for five grand?
0:43:08 > 0:43:11Seems a tall order to me but you can find out how they get on later.
0:43:15 > 0:43:19Well, when we left, our auction aficionados had their fingers crossed
0:43:19 > 0:43:20and high hopes of success.
0:43:20 > 0:43:23Ah, but have the purchasers been having sleepless nights?
0:43:23 > 0:43:25Let's go back and find out.
0:43:28 > 0:43:32Remember this three-storey property in the seaside town of Margate?
0:43:34 > 0:43:37It had previously been converted into three flats.
0:43:38 > 0:43:41There was a one-bedroom basement and ground floor flat,
0:43:41 > 0:43:44plus two single-bedroom flats on the first and second floors.
0:43:46 > 0:43:50Problems with the leaking roof meant damp had penetrated the walls
0:43:50 > 0:43:52and rotted the timbers.
0:43:53 > 0:43:55Most people would turn and run
0:43:55 > 0:43:59but builder Neil and his wife Freda are not most people.
0:43:59 > 0:44:02They paid £95,000 for the place
0:44:02 > 0:44:05and budgeted 26 grand for renovations.
0:44:06 > 0:44:10They planned to have the flats ready to rent out in just ten weeks.
0:44:13 > 0:44:16Oh, I love you, Neil. You're going to do that for that money
0:44:16 > 0:44:18in that short amount of time?
0:44:18 > 0:44:22- Well, I wouldn't say bish, bash, bosh but...- You said it.
0:44:22 > 0:44:24Bish, bash, bosh? I think not.
0:44:24 > 0:44:27MUSIC: "Magnificent" by U2
0:44:30 > 0:44:33Three months later, we're back and what a transformation!
0:44:34 > 0:44:37# Magnificent... #
0:44:38 > 0:44:40Obviously it's a major refurbishment.
0:44:40 > 0:44:44We've replastered right from top to bottom.
0:44:44 > 0:44:46We've replumbed it, we've rewired.
0:44:46 > 0:44:50Obviously new flooring, new skirting, sound proofing.
0:44:50 > 0:44:52The only thing we haven't changed is the windows.
0:44:53 > 0:44:57The ground floor and basement flat has become a two-bedroom property.
0:44:57 > 0:45:00The lounge and kitchen are on the ground floor
0:45:00 > 0:45:03and by removing a wall and allowing more light into the kitchen,
0:45:03 > 0:45:07Neil has created a spacious, open-plan living area.
0:45:08 > 0:45:12A shower room on the ground floor has also been added,
0:45:12 > 0:45:15which has made space for two bedrooms downstairs.
0:45:25 > 0:45:28# Magnificent... #
0:45:30 > 0:45:34On the first floor there is now a contemporary open-plan living space.
0:45:34 > 0:45:36A light and airy lounge leads onto the kitchen.
0:45:45 > 0:45:50And in the shower room, Neil has worked his magic again.
0:45:50 > 0:45:53# Magnificent... #
0:45:55 > 0:45:59Neil and Freda have transformed this property
0:45:59 > 0:46:02from derelict and dingy to cool and comfortable.
0:46:04 > 0:46:06We thoroughly enjoyed doing it
0:46:06 > 0:46:09and I'm enjoying the end product, as well.
0:46:09 > 0:46:12I can't really say there was any hard part of it.
0:46:12 > 0:46:16I think the hard bit all gets took away when you see how you've changed it.
0:46:16 > 0:46:19- Exactly, yeah. - You know, like most things,
0:46:19 > 0:46:21you've got to put something into it
0:46:21 > 0:46:24and then you think, "Wow, we've done it again."
0:46:26 > 0:46:30The top floor flat suffered the most from the leaking roof
0:46:30 > 0:46:32but it's yet another triumph for Neil.
0:46:32 > 0:46:35The quality of his craftsmanship shines through.
0:46:45 > 0:46:47We knew we had a problem with the roof
0:46:47 > 0:46:51because when we came here, the water was running down the walls.
0:46:51 > 0:46:53So we've done the mansard roof.
0:46:53 > 0:46:57We've renewed all the lead box gutters, downpipes, etc.
0:46:57 > 0:47:02A lot of the water was through neglect of the drainpipes,
0:47:02 > 0:47:04they were all blocked up, plants growing out of them.
0:47:04 > 0:47:07The building was empty for two years before
0:47:07 > 0:47:10and no-one worried about it and the rain got in
0:47:10 > 0:47:13and that's what done most of the damage.
0:47:13 > 0:47:15What about the back garden?
0:47:15 > 0:47:17Neil decided to make a communal area,
0:47:17 > 0:47:21rather than offering a private garden with the ground floor flat.
0:47:21 > 0:47:25We're approaching the council at this minute, we've got it in now,
0:47:25 > 0:47:28to try and put three storage units in the garden.
0:47:28 > 0:47:31If they turn us down, we'll just continue the slabs and that's it,
0:47:31 > 0:47:33but that's what we're hoping to do.
0:47:34 > 0:47:37And did he managed all this in only ten weeks?
0:47:39 > 0:47:43Well, when we took it on, we said about a ten week contract,
0:47:43 > 0:47:46which I suppose, if you look at it realistically, it took ten weeks
0:47:46 > 0:47:49but we was finished as such in nine weeks
0:47:49 > 0:47:53but then there were the little bits, a bit of painting and stuff like that,
0:47:53 > 0:47:55which dragged it out to the ten weeks.
0:47:55 > 0:47:57So, yeah, we're very pleased with the outcome
0:47:57 > 0:47:59and we're very pleased on our time.
0:47:59 > 0:48:02What about that budget of £26,000?
0:48:03 > 0:48:07We've gone over budget, I would think, by about £7,000,
0:48:07 > 0:48:10which I suppose is not that bad.
0:48:10 > 0:48:13Well, basically, it was the roof. The lead is so expensive.
0:48:13 > 0:48:17I would say the roof took half of that, at least half.
0:48:17 > 0:48:21We find that if you put the extra little bits in and do the extra work,
0:48:21 > 0:48:25like the sound proofing, which we didn't have to do but we chose to do,
0:48:25 > 0:48:28but it saves you any problems at a later date.
0:48:28 > 0:48:30Once a property's rented out,
0:48:30 > 0:48:34you don't want the tenants ringing up and saying the roof's leaking
0:48:34 > 0:48:36or we can hear the people upstairs.
0:48:36 > 0:48:40So we do make sure that all them things are done properly, as well.
0:48:40 > 0:48:43Hence why we've gone so much over budget, I suppose.
0:48:45 > 0:48:49Neil and Freda are a formidable couple
0:48:49 > 0:48:51and a tight-knit team, whatever they might say.
0:48:51 > 0:48:54He's not used to being this close, that's the trouble.
0:48:54 > 0:48:56- Ahh!- Don't start that.
0:48:58 > 0:49:01We asked two local estate agents for their opinions.
0:49:01 > 0:49:04I think the quality of the work is very good,
0:49:04 > 0:49:08an credit to the owner of the property, a real transformation.
0:49:10 > 0:49:12With the back area,
0:49:12 > 0:49:16it would have been nice as a garden to go with the ground floor flat,
0:49:16 > 0:49:18to have some outside space for that property.
0:49:22 > 0:49:25Neil has spent a total of 128,000,
0:49:25 > 0:49:28purchasing and renovating the property.
0:49:28 > 0:49:31The estate agents predict a combined resale value
0:49:31 > 0:49:32for all three flats
0:49:32 > 0:49:36of between £183,000 and £190,000.
0:49:36 > 0:49:39That would mean he would make a pre-tax profit
0:49:39 > 0:49:42of between 55 and 62 grand.
0:49:42 > 0:49:45But Neil has always planned to rent each flat out.
0:49:49 > 0:49:51The market rent for the top floor flat is
0:49:51 > 0:49:55about £325-350 per calendar month.
0:49:55 > 0:49:58The middle flat is also a one bedroom but a better size.
0:49:58 > 0:50:02I think we'll be looking at about 375 per calendar month
0:50:02 > 0:50:05and the two bedroom flat about £450 per calendar month.
0:50:05 > 0:50:09The top flat I would recommend £425 per calendar month.
0:50:09 > 0:50:13For the middle flat, I would recommend £450 per calendar month
0:50:13 > 0:50:15and for the ground floor two-bedroom,
0:50:15 > 0:50:18I would recommend £500 per calendar month.
0:50:19 > 0:50:23That would mean an impressive yield of between 10 and 13%.
0:50:26 > 0:50:30I was looking at, overall, £400 per month each one,
0:50:30 > 0:50:36so by the time you take the benefit of the bottom one offset against the top floor,
0:50:36 > 0:50:38it's about right to what we was thinking.
0:50:39 > 0:50:40So what's next?
0:50:41 > 0:50:43Holiday.
0:50:44 > 0:50:47# Magnificent. #
0:50:53 > 0:50:58We're back in Shropshire, where this two-bed house was sold for £62,000.
0:50:58 > 0:51:02The property was covered in mould and mildew.
0:51:12 > 0:51:16A burst water pipe in the attic had caused the ceiling to collapse.
0:51:16 > 0:51:18The house smelt bad and looked worse.
0:51:18 > 0:51:21But beauty is in the eye of the beholder.
0:51:27 > 0:51:30They buy the houses others are too scared to touch.
0:51:33 > 0:51:36We quite like the fact that they do look rough.
0:51:36 > 0:51:39If they're too desirable, people pay silly money.
0:51:39 > 0:51:43As long as there's a profit, it doesn't matter what it is and where it is.
0:51:43 > 0:51:47So seven weeks later, how have they got on
0:51:47 > 0:51:49with their whirlwind makeover?
0:51:55 > 0:51:59The previously shabby interior certainly scrubs up well.
0:52:02 > 0:52:06The lounge was dank, dirty and dripping wet.
0:52:06 > 0:52:10Now it's clean, fresh and, most importantly, dry.
0:52:10 > 0:52:15The main things we've done are to take the hedge down at the front,
0:52:15 > 0:52:18redecorate and replaster inside.
0:52:18 > 0:52:21It's always the way with any property -
0:52:21 > 0:52:23a coat of paint on the walls, a fresh carpet
0:52:23 > 0:52:25and it does make a world of difference.
0:52:27 > 0:52:29Onwards and upwards.
0:52:30 > 0:52:32Mark and Mike have fixed the collapsed ceiling
0:52:32 > 0:52:37and the bedrooms now feel bright, spacious and fresh.
0:52:42 > 0:52:44All traces of the damp have disappeared.
0:52:45 > 0:52:50The main cause of the damp was really due to a tap being left on where the washing machine was.
0:52:50 > 0:52:53The holes in the ceiling were a different flood
0:52:53 > 0:52:57but the damp was about six or seven buckets of water
0:52:57 > 0:53:01leaking into the house every day with all the windows and doors shut,
0:53:01 > 0:53:05so an incredible amount of mould and mildew.
0:53:06 > 0:53:09The kitchen has been transformed.
0:53:11 > 0:53:15Where possible, existing items were retained and refurbished.
0:53:15 > 0:53:18The duo always keep an eye on the bottom line
0:53:18 > 0:53:22but they certainly know when to spend to make an impression.
0:53:23 > 0:53:26The kitchen wasn't as bad as it looked.
0:53:26 > 0:53:30The worktops that were in place were still functional
0:53:30 > 0:53:33but we decided to replace them to make it look more modern.
0:53:34 > 0:53:39But the kitchen units themselves are the same ones that were here.
0:53:39 > 0:53:42We just changed the handles on them, new worktops, sink,
0:53:42 > 0:53:46retiled and new kick boards because they were damaged by the damp.
0:53:46 > 0:53:48But that's it, really.
0:53:48 > 0:53:50It looks a lot better for not too much work.
0:53:51 > 0:53:54And the overgrown garden?
0:53:57 > 0:54:00Mark and Mike went for easy maintenance.
0:54:00 > 0:54:04So did they stick to their budget of between £4,000 and £5,000?
0:54:05 > 0:54:09Total cost, I would say, we spent around £6,000,
0:54:09 > 0:54:15which is maybe 1,500 more than we anticipated.
0:54:16 > 0:54:21So they spent £6,000 and went just one week over the six-week schedule.
0:54:22 > 0:54:25It's been a rush to get it done in the time we wanted
0:54:25 > 0:54:28but it's gone to plan.
0:54:28 > 0:54:30There were a couple of times along the way
0:54:30 > 0:54:32there was a worry that we weren't going to do it in time
0:54:32 > 0:54:34and there'd be some late nights
0:54:34 > 0:54:38but it sort of rectified itself in the end.
0:54:38 > 0:54:41Some things were tricky and other things went quickly.
0:54:43 > 0:54:46We asked two local estate agents to take a look at the property.
0:54:49 > 0:54:51First impressions are that it's in very good condition.
0:54:51 > 0:54:56It's nice and clean and would appeal to either small families
0:54:56 > 0:54:57or to first-time buyers.
0:54:59 > 0:55:01They've done a good job.
0:55:01 > 0:55:04They've not gone overboard but it's very clean and tidy
0:55:04 > 0:55:07and they've spent the money where it matters.
0:55:08 > 0:55:12Mark and Mike spent £62,000 purchasing the property
0:55:12 > 0:55:16and a further six on renovations, totalling £68,000.
0:55:16 > 0:55:18What could the house sell for now?
0:55:20 > 0:55:23If I was to put this on the open market today,
0:55:23 > 0:55:26I would expect to achieve round about £80,000.
0:55:27 > 0:55:30I would expect this property to achieve £90,000.
0:55:32 > 0:55:35Those valuations could give them a pre-tax profit
0:55:35 > 0:55:37of between £12,000 and £22,000,
0:55:37 > 0:55:40minus the usual selling expenses.
0:55:40 > 0:55:43Hopefully, we're going to get closer to 90
0:55:43 > 0:55:46but that is quite a big difference on the price.
0:55:46 > 0:55:50- I would have hoped high 80s.- Yeah. - Mid to high 80s.
0:55:51 > 0:55:54The boys have no plans to sell at present
0:55:54 > 0:55:58as they already have a tenant lined up.
0:55:58 > 0:56:04If this was put on the rental market, I would expect to achieve around £500 per calendar month.
0:56:04 > 0:56:07I would expect it to reach £525 per calendar month.
0:56:07 > 0:56:10Do the estate agents' suggestions tally
0:56:10 > 0:56:13with Mark and Mike's rental income?
0:56:13 > 0:56:15- It's about bang on, isn't it? - Yes, yeah.
0:56:15 > 0:56:17I've got someone agreeing to rent it for 525,
0:56:17 > 0:56:21- so they're pretty much right, there. - Yeah. Quite happy with that.
0:56:23 > 0:56:24No wonder they're happy.
0:56:24 > 0:56:27That's a healthy yield of over 9%
0:56:27 > 0:56:30and another impressive outcome for Mark and Mike.
0:56:30 > 0:56:32What's the secret of their success?
0:56:33 > 0:56:36Really do the sums on every single property.
0:56:36 > 0:56:38If it adds up, then we'll look at it.
0:56:38 > 0:56:42We look at every property and whichever one drops at the right price,
0:56:42 > 0:56:43we'll have a go at that one.
0:56:43 > 0:56:47But it's usually the uglier properties
0:56:47 > 0:56:49and the less desirable that we end up with.
0:56:50 > 0:56:53The guys have really turned this place round,
0:56:53 > 0:56:56from dilapidated dwelling to des res.
0:56:56 > 0:57:01- Join us next time...- For more thrills and spills from the auction.- We'll see you then.- Goodbye.- Goodbye.
0:57:01 > 0:57:03Subtitles by Red Bee Media Ltd
0:57:03 > 0:57:05E-mail subtitling@bbc.co.uk