0:00:02 > 0:00:04- Welcome to Homes Under The Hammer. - For many buying at auction
0:00:04 > 0:00:06gives the chance to buy properties in need of some work.
0:00:06 > 0:00:12Many like to put their own stamp and style on their property and, hopefully, make a bit of a profit.
0:00:12 > 0:00:16And there's a good opportunity you could do that when you buy your home under the hammer!
0:00:42 > 0:00:45Martin and I love the buzz of the auction room.
0:00:45 > 0:00:48You can really sense the hope and frustration in the air.
0:00:48 > 0:00:51But you never know what's going to happen until the very last second.
0:00:51 > 0:00:55So let's see what tempted the buyers on today's show.
0:00:56 > 0:00:59Don't be put off by the state of this semi in Devon.
0:00:59 > 0:01:05It's a mess but I think you could really work with this house to create something very special.
0:01:06 > 0:01:10When we first showed you this Southampton house, the refurbishment had been delayed.
0:01:10 > 0:01:15Well, it's taken 18 months but now you can see the stunning finished result.
0:01:17 > 0:01:23And there are three flats in this Kent property with lots of rooms, so it's easy to get confused.
0:01:23 > 0:01:26Where the heck's the bedroom?
0:01:28 > 0:01:32All of these properties went to auction and we'll find out who bought them and what they paid
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36..Out!
0:01:46 > 0:01:52I'm in Brixham in South Devon, known as the English Riviera...
0:01:52 > 0:01:58Brixham, Paignton, Torquay... I mean, it is a stunning spot!
0:01:58 > 0:01:59Even in the rain!
0:01:59 > 0:02:03# It's raining again... #
0:02:03 > 0:02:09It certainly is pouring down today, but the house I'm here to see is in the village of Galmpton.
0:02:09 > 0:02:15It has all the amenities you'd need day to day. Nearby Torquay and Brixham provide the beaches
0:02:15 > 0:02:20for that year-round holiday feeling, even when it's a bit wetter than you might like.
0:02:23 > 0:02:27Well, when you've finished with your bucket and spade and it's time to head back to reality,
0:02:27 > 0:02:32the property I'm here to see sounds pretty promising. 1935 it was built, it's got four bedrooms,
0:02:32 > 0:02:36semidetached, had a guide price of £140,000,
0:02:36 > 0:02:41it's on a bus route, close to shops, a restaurant...I mean, whoo! Let's take a look inside.
0:02:43 > 0:02:48Well, the rain may still be falling but I don't think this place will be a washout.
0:02:51 > 0:02:54Nice big entrance hall, we like that, and then through into the lounge.
0:02:54 > 0:02:58Big bay window, lots of light flooding in, so that's a good start,
0:02:58 > 0:03:03but from that point on it starts to get a little bit weird, partly due to the number of doors.
0:03:03 > 0:03:07There's one door there which I just came through, this completely superfluous door here,
0:03:07 > 0:03:13another door there into the kitchen. Maybe the person who owned it was into knock-knock jokes!
0:03:13 > 0:03:18You've then got this middle area with this fairly odd fireplace...
0:03:18 > 0:03:24Carry on through...and it is a big house, you have to say, you come to this area on the end.
0:03:24 > 0:03:27It's a very useful space actually.
0:03:27 > 0:03:31This, I think, could be made fantastic. It's sort of like a family area,
0:03:31 > 0:03:34not least because it joins the kitchen.
0:03:34 > 0:03:42It's a mess, but I think you could really work with this house to create something very special.
0:03:47 > 0:03:52The ground floor would look amazing if it were almost completely open-plan.
0:03:52 > 0:03:55Of course that would mean enlisting the help of a structural engineer
0:03:55 > 0:03:58to ensure that none of the walls are supporting ones.
0:04:03 > 0:04:08So...upstairs. Love the fact you've got this huge great window on the landing there, loads of light,
0:04:08 > 0:04:13even a view of the hills, which is good to see. And then up here... I mean, it's a big house!
0:04:13 > 0:04:17We've got four double bedrooms, absolutely brilliant!
0:04:17 > 0:04:20The only thing that lets it down in terms of a family house is the bathroom,
0:04:20 > 0:04:24because you've got a separate loo and a bathroom, so that's not ideal.
0:04:24 > 0:04:25In terms of expansion, then, what would you do?
0:04:25 > 0:04:29Well, I know there's a market in this area for five-bedroomed houses,
0:04:29 > 0:04:32so you might think it's worthwhile to go up into the loft.
0:04:32 > 0:04:38That would add, well, around, £15,000 to the value, and I don't reckon it would cost more to do it,
0:04:38 > 0:04:41so that's worth considering! Another you shouldn't do is throw away the bathroom.
0:04:41 > 0:04:46That walk-in bath actually has a value in the second-hand market,
0:04:46 > 0:04:49so make sure you take it out carefully when you replace the suite.
0:04:51 > 0:04:54Space certainly isn't an issue here. It's not in a bad state,
0:04:54 > 0:04:58with just some cracks and woodwork that need attention upstairs.
0:04:58 > 0:05:03But the question is what's outside beneath those rain clouds?
0:05:05 > 0:05:09So a good-sized garden which just adds to the appeal of this as a family house.
0:05:09 > 0:05:14Something which isn't so good is the garage, which, I suppose, is functional but not all pretty...
0:05:14 > 0:05:17very like this extension which has been put on.
0:05:17 > 0:05:23I didn't actually notice this when I was inside, but look at it! It's absolutely monstrous.
0:05:23 > 0:05:27You'd want to try and enclose this because as it is it looks like a real eyesore,
0:05:27 > 0:05:29and like it might fall down at any point.
0:05:29 > 0:05:32There's no getting away from it, there's an awful lot to do here,
0:05:32 > 0:05:37but at what was a guide price of £140,000, I think it has great potential.
0:05:37 > 0:05:41Let's see if a local estate agent agrees.
0:05:41 > 0:05:43I feel the property needs quite a lot...
0:05:43 > 0:05:45doing to it.
0:05:45 > 0:05:50We need to look at definitely a lot of decor, new bathroom, kitchen,
0:05:50 > 0:05:55possibly a bit of a jig around, and maybe sort of rewiring.
0:05:55 > 0:05:57You're looking at most probably
0:05:57 > 0:06:03spending about sort of £30,000 to get it up to scratch, depending on what you wanted to do it.
0:06:03 > 0:06:09Not a small budget, but it would be enough to transform the place, so what are the prospects here?
0:06:11 > 0:06:16In this property you could also go up into the loft. There's plenty of space to do that,
0:06:16 > 0:06:21there are others along the road that have done that and there's plenty of space on the landing here
0:06:21 > 0:06:24to be able to go up and not make any of the other rooms smaller.
0:06:24 > 0:06:30As I thought, going up into the loft would be a good solution to add value to this house.
0:06:30 > 0:06:36But it would also add quite a chunk to any renovation budget. What about the rental possibilities?
0:06:37 > 0:06:43I feel this property is more ideal for resale, but if you were to look into renting this property,
0:06:43 > 0:06:48you're looking at about £750 a month.
0:06:48 > 0:06:53That's a fair income for this area and worth considering for investment purposes.
0:06:53 > 0:06:55What about putting it up for resale?
0:06:57 > 0:07:04I feel this property would be worth, once renovated, around £240,000.
0:07:04 > 0:07:09Well, Galmpton is a lovely spot. It looks like a fantastic place to live,
0:07:09 > 0:07:14and what you've got here is a fantastic family house for 140 grand as guide price,
0:07:14 > 0:07:20with the option of doing a bit of work to improve it, maybe going up into the loft with another room...
0:07:20 > 0:07:23It's a great one to go for. Let's see who fancied it at the auction.
0:07:26 > 0:07:30Who's going to say just nice and simply 140, shown in the guide?
0:07:30 > 0:07:32140, we do. At 140.
0:07:32 > 0:07:34150.
0:07:34 > 0:07:36160, do I? 160.
0:07:36 > 0:07:37170.
0:07:37 > 0:07:39175 and a half.
0:07:42 > 0:07:43175...and a half.
0:07:43 > 0:07:44Once...
0:07:44 > 0:07:46176.
0:07:46 > 0:07:48176 and a half.
0:07:48 > 0:07:50177.
0:07:52 > 0:07:57It's a big house, a lot of accommodation. It's going to go away from you for the sake of £500.
0:07:57 > 0:08:00You sure and done? Going to be sold at... One more.
0:08:00 > 0:08:02177 and a half. 177 and a half.
0:08:02 > 0:08:05178. Oh...
0:08:05 > 0:08:07At 178, young man's in.
0:08:07 > 0:08:12178 once, twice, third and last time...here we go...at 178 and out.
0:08:13 > 0:08:15Young man, well done. Hard luck, madam. Thanks for pushing it up.
0:08:17 > 0:08:22So for £178,000, 38,000 over the guide price,
0:08:22 > 0:08:26Mark and his wife Loretta bought this house for themselves,
0:08:26 > 0:08:29their two-year-old son and their impending arrival.
0:08:29 > 0:08:34# Ooh, baby love, my baby love... #
0:08:34 > 0:08:41They both work for Loretta's family plumbing and distribution business, which will be handy for contacts!
0:08:41 > 0:08:44They intend to make this their first family home.
0:08:46 > 0:08:49Mark, Loretta, lovely to meet you both. Congratulations. Tell me why you wanted to buy the house.
0:08:49 > 0:08:57We weren't openly looking actually but my parents live in this village so we drive past here a lot,
0:08:57 > 0:09:01and basically saw it and nosiness got the better of us and we thought, "Well, let's go and have a look."
0:09:01 > 0:09:06Nice village, good primary school. We have a little boy who's 2 and a half, nearly three.
0:09:06 > 0:09:09- Great!- So we thought, "Well, we'll just go and have a look."
0:09:09 > 0:09:13And we came in and we thought, "Wow! It's big and it's got potential..."
0:09:13 > 0:09:17- So this is your first home, your first family home?- Yeah.- Yeah.
0:09:17 > 0:09:20- It is.- Yeah, it's amazing. - What a great house to have as your first family house.
0:09:22 > 0:09:25Until now the family have been living in rented accommodation,
0:09:25 > 0:09:31but with three soon becoming four, they felt it was time to invest in a home.
0:09:32 > 0:09:35- When's the baby due? - End of October, early November.
0:09:35 > 0:09:38- Oh...!- We're hoping to be in.
0:09:38 > 0:09:41So that's only three months or so away?
0:09:41 > 0:09:47Pretty tight on timescales but we have a very handy brother-in-law, which should help us out.
0:09:47 > 0:09:51- No pressure on him!- He's a builder. - He's a builder?- He's a builder, and we brought him along actually...
0:09:51 > 0:09:55and he's, like, "Yeah, that's doable and potential..." That was it really.
0:09:55 > 0:10:00We thought, "Right, if he's on board and he thinks it's a good idea, we can afford it, we'll have a go."
0:10:00 > 0:10:04Great to have brought somebody who actually knows what they're doing around as well,
0:10:04 > 0:10:06so that you know it isn't falling to pieces.
0:10:06 > 0:10:10So how much did he indicate you might need to spend to get it sorted out?
0:10:10 > 0:10:14Well, early days, before he'd done a little more exploration,
0:10:14 > 0:10:18he said something around sort of late 20s...thousands...
0:10:18 > 0:10:23but I think after, you know, a few more things that we want to add to the property,
0:10:23 > 0:10:28then we're probably looking at closer to 40, I'd have thought, something around that sort of budget.
0:10:28 > 0:10:30You end up with a stonking house for that, don't you?
0:10:30 > 0:10:36Mark and Loretta have grand plans to remove virtually all the walls on the ground floor,
0:10:36 > 0:10:43making it completely open-plan. They want a new kitchen and bathroom, new flooring and extra radiators.
0:10:43 > 0:10:48Even with £40,000 it's a big ask to get it all done in three months.
0:10:52 > 0:10:55What do you realistically think you can achieve in that time?
0:10:55 > 0:11:00I think the structural downstairs and the kitchen things will be in, the bathroom will be in.
0:11:00 > 0:11:03How much we will have managed to do decoratively, we don't know,
0:11:03 > 0:11:09but I'm really positive...I'm going to remain really positive that we'll get all of the big stuff done.
0:11:10 > 0:11:14Loretta's not going to be content with magnolia walls.
0:11:14 > 0:11:18She has creative ideas for the decor as well.
0:11:23 > 0:11:26We've had the notebook... I'm sorry, I had to get it in!
0:11:26 > 0:11:32- What's the notebook?- With all of the moods...- My scrapbook!- A mood book? That's a great thing to have!
0:11:32 > 0:11:35Thinking about how I want to use the space and what's important to me...
0:11:35 > 0:11:38and with small children and things like that, it's been...
0:11:38 > 0:11:44- And because it's the whole house, it's a lot to think about.- Did you get cuttings from magazines?
0:11:44 > 0:11:47- I loved it, it's been great! - Bits of fabric... A mood book's a great idea.
0:11:47 > 0:11:50- You need to show us your mood book when we come back.- Yeah...
0:11:50 > 0:11:54- we'd love to. We'll see how close I get to my vision. - Yeah, definitely!
0:11:54 > 0:11:59# If you want it You've got to believe... #
0:11:59 > 0:12:04The couple obviously have the vision to see what a great family home this could be,
0:12:04 > 0:12:08and it's an exciting first step on to that property ladder.
0:12:10 > 0:12:15Well, how wonderful that Mark and Loretta have got this place and are going to turn it into a family home,
0:12:15 > 0:12:19because a most wonderful family home it will most certainly make.
0:12:19 > 0:12:23And how great that they've got Loretta's brother-in-law to help them out.
0:12:23 > 0:12:26But, of course, we are on a deadline. We've got a baby on the way.
0:12:26 > 0:12:33So will how they get on with budgets, builders and babies? You can find out later in the show.
0:12:35 > 0:12:40We're now returning to a property we first showed you in November 2008.
0:12:40 > 0:12:46It was close to the River Itchen in Southampton in the suburb of Bitterne on Athelstone Road.
0:12:46 > 0:12:49Well, just off this busy main road is today's lot.
0:12:49 > 0:12:52It's a three-bedroomed semidetached house
0:12:52 > 0:12:57and the guide price is 130,000. Let's see if it's worth the money.
0:12:57 > 0:13:03The name of the road Athelstone derives from an old English word, meaning "noble stone",
0:13:03 > 0:13:08but from the front here there's not much that lives up to that. There's moss on the roof tiles,
0:13:08 > 0:13:14and signs of wear and tear. So it's not off to a spectacular start.
0:13:14 > 0:13:19Well, my first impression of this house once you walk in is that it's really tired and dated.
0:13:19 > 0:13:23And you can see the previous owner has left a lot of possessions lying around,
0:13:23 > 0:13:30so it's quite hard to see some of the rooms. But what I do like about 1920s houses
0:13:30 > 0:13:31is that you get big, big spaces!
0:13:31 > 0:13:37You've got two lovely reception rooms here, but I can detect Artex everywhere,
0:13:37 > 0:13:40on all the ceilings, so that's something I think I'd have to address.
0:13:40 > 0:13:43But at the back of the house, you've got a really nice long galley kitchen,
0:13:43 > 0:13:46a bit dated, you will have to update this.
0:13:46 > 0:13:51You've got enough room at the end to put a table and chairs, but what I really like about this room...
0:13:51 > 0:13:58is that cracking little view over River Itchen. That's the real selling point here, those views.
0:13:58 > 0:14:02People are prepared to pay a premium to look out over the river,
0:14:02 > 0:14:07but something buyers do not like paying for is problems, and there's a fair share of those here.
0:14:07 > 0:14:11There's the crack in the ceiling for starters and also signs of damp throughout.
0:14:11 > 0:14:17Well, upstairs we've got this really nice light landing area, all down to this lovely big sunny window here.
0:14:17 > 0:14:21The boxroom, again with the fantastic view, and two really good-sized doubles.
0:14:21 > 0:14:27The bathroom suite...avocado... it's got to go! Replace it with something white.
0:14:27 > 0:14:31And in this room, you've got a really nice-sized double bedroom.
0:14:31 > 0:14:34It'll be lovely to see these stripes stripped
0:14:34 > 0:14:37and this room painted in something more contemporary and modern.
0:14:37 > 0:14:44These stripes aren't the only thing to go. The heating here is by old storage heaters and gas fires,
0:14:44 > 0:14:47so you'd have to consider installing new central heating.
0:14:47 > 0:14:49But the bones of this place are solid.
0:14:49 > 0:14:56Get past that dated decor and you've got the makings of a well-configured family house.
0:14:56 > 0:14:58And we haven't gone outside yet.
0:14:58 > 0:15:00So here's the back garden.
0:15:00 > 0:15:05You may think it's really interesting with all these little paths and winding walkways,
0:15:05 > 0:15:08but let's not forget this is a family house
0:15:08 > 0:15:11and this garden could be very difficult for kids to play in.
0:15:11 > 0:15:17To get this levelled out would be a very expensive job, but in my opinion worth thinking about.
0:15:17 > 0:15:20What really sets this garden off, though, is that view.
0:15:20 > 0:15:24But just to let you know, folks, it's a winter view only.
0:15:24 > 0:15:28In the summer, the leaves will be back and the view will be gone.
0:15:28 > 0:15:32This must be one of the few properties I've visited on Homes Under The Hammer
0:15:32 > 0:15:35that could have me longing for the cooler days of winter! But back to the house...
0:15:35 > 0:15:39The back looks very much like the front. Everything needs some work,
0:15:39 > 0:15:44and though that rendering isn't easy on the eye, it is at least low maintenance.
0:15:44 > 0:15:51This little 1920s house is in good order. It does require work and it needs a new kitchen and bathroom,
0:15:51 > 0:15:55but it's in a desirable area with great views from the garden.
0:15:55 > 0:16:02And the guide is realistically set at 130,000. Let's see who went for this property as we go to auction.
0:16:05 > 0:16:08Number 21 in your catalogue.
0:16:08 > 0:16:10Somebody prepared to start
0:16:10 > 0:16:14at just 110,000? You do, sir? 110 we have.
0:16:14 > 0:16:18112 here in the front. 112,000.
0:16:18 > 0:16:20114's bid in the back. 116.
0:16:20 > 0:16:23116 here in the front.
0:16:23 > 0:16:25118 we have got.
0:16:25 > 0:16:27120 in the front here.
0:16:27 > 0:16:31122? I'll do a 1 now if that's going to help you.
0:16:31 > 0:16:33121 we have got.
0:16:33 > 0:16:35Fresh bid at 122.
0:16:35 > 0:16:38123? 123.
0:16:38 > 0:16:40124.
0:16:40 > 0:16:41124,000.
0:16:41 > 0:16:44Bid's against you now, 125 is what I need.
0:16:44 > 0:16:46No, back in at 125.
0:16:46 > 0:16:48126. Thank you, sir.
0:16:48 > 0:16:50127?
0:16:50 > 0:16:54No? You're out. £126,000, then, with you, sir.
0:16:54 > 0:16:57£126,000. 127.
0:16:57 > 0:17:00Now we're talking 127.
0:17:00 > 0:17:02Gentleman's back at 128.
0:17:02 > 0:17:04128. 129?
0:17:04 > 0:17:07129.
0:17:07 > 0:17:10Gentleman's back in at 130. He looks committed.
0:17:10 > 0:17:12131.
0:17:12 > 0:17:16No? You're out. You sure? They're out, sir. It's with you at 130, then.
0:17:16 > 0:17:20I have 130,000 on Athelstone Road for the first...
0:17:20 > 0:17:23I have 130,000 for the second...
0:17:23 > 0:17:29I have £130,000 for the third and final time... Your property. Well done.
0:17:29 > 0:17:30Your number, please, sir?
0:17:31 > 0:17:37After that battle in the auction room, it was retired couple Roger and Linsday who emerged victorious.
0:17:37 > 0:17:42They got this property for spot on the guide price of £130,000.
0:17:42 > 0:17:46- Roger and Lindsay, congratulations. - Thank you.- You pulled it off.
0:17:46 > 0:17:51- Yes, we did. - You got it for the guide price. - We did.- Yes.- Very lucky.
0:17:51 > 0:17:54How much would you have gone up to? I love asking people that!
0:17:54 > 0:17:58You may not believe this but I was stopping on 130. I wasn't going further.
0:17:58 > 0:18:04- So you got it bang on the guide price.- On the nail.- Roger, why was this the right house for you?
0:18:04 > 0:18:11Because our son lives about three streets away and is just about to have some work done on his house,
0:18:11 > 0:18:14which means he's going to have a lot of demolition done,
0:18:14 > 0:18:18so we thought it would be a good idea if they move into here while the builders are in.
0:18:18 > 0:18:24Building works can be very messy affairs, so Roger and Lindsay are definitely providing their son
0:18:24 > 0:18:26and his family with a great alternative.
0:18:26 > 0:18:30But there's another personal reason for buying this house.
0:18:30 > 0:18:34So were you looking for property for them or it just happened to fall into place?
0:18:34 > 0:18:39Just happened to fall into place, really, cos I really wanted to have a go at doing a property myself.
0:18:39 > 0:18:42I'd done my own house up a few years ago,
0:18:42 > 0:18:45and I thought, "Well, when I retire it'll keep me out of mischief!"
0:18:45 > 0:18:48- Now, Lindsay, do you agree with that?- Yes!
0:18:48 > 0:18:51Is this something Roger's wanted to do for quite a while?
0:18:51 > 0:18:57He has. And since he's retired last year, he's always said he'd like to do something property...
0:18:57 > 0:19:03and DIY he's very good at, so this is ideal. It'll keep him out of mischief.
0:19:03 > 0:19:07- You're raring to go, aren't you? - Absolutely. Toolbox is ready!
0:19:07 > 0:19:13# I've spent a lifetime Waiting for the right time... #
0:19:13 > 0:19:18Well, it's time for all the talking to stop and for Roger to prove himself.
0:19:18 > 0:19:22This house certainly provides plenty to test his DIY skills.
0:19:22 > 0:19:24# ..It's now or never... #
0:19:24 > 0:19:29The couple plan to install a new central-heating system, replace the double glazing
0:19:29 > 0:19:32and put in an updated kitchen and bathroom.
0:19:32 > 0:19:37As for those cracks, a survey has revealed no subsidence here,
0:19:37 > 0:19:42so no structural changes are planned, but there's still a fair amount to do,
0:19:42 > 0:19:47and the couple have given themselves a comfortable 30-grand renovation budget.
0:19:47 > 0:19:52- How are you going to get involved in this, Lindsay?- I shall be helping, probably labouring a little bit
0:19:52 > 0:19:57and doing the gardening and just supervising now and again, probably.
0:19:57 > 0:20:01- You've made that clear from the off? - I've made that clear, yes!
0:20:01 > 0:20:06Though looking at the state of this garden, I think Lindsay may have drawn the short straw here!
0:20:06 > 0:20:09Their son's family plan to move in,
0:20:09 > 0:20:12but it's got some way to go before being child-friendly
0:20:12 > 0:20:15and the slope rather restricts their options.
0:20:15 > 0:20:20But as for the rest of the house, well, Roger and Lindsay hope to have it ready in three months,
0:20:20 > 0:20:24though I reckon they might get a bit distracted by looking out the back window.
0:20:24 > 0:20:27What about that view? What about that winter view?
0:20:27 > 0:20:30- Fantastic. Well, I'm a sailor myself.- Lovely.- Are you?
0:20:30 > 0:20:35So looking out and seeing that view which wasn't there when we came to look at it a couple of months ago...
0:20:35 > 0:20:38- I think that's really an added little bonus to this house.- Yes.
0:20:38 > 0:20:42When we looked out this morning with the blue sky and the yachts moored out there, it's really lovely.
0:20:42 > 0:20:46And you know it's not going to be built on behind. That's one good thing.
0:20:47 > 0:20:53Stay with us to find out why things were on hold the first time we went back.
0:20:55 > 0:21:00In December I'd a total knee replacement, so...
0:21:00 > 0:21:02I've been a few months getting back to strength.
0:21:03 > 0:21:08But you'll see the fantastic completed property later on in the programme.
0:21:09 > 0:21:14Coming up...if you leave this Kent property as separate flats, you could be in the money!
0:21:14 > 0:21:18This house suddenly turns into a big income-generating machine.
0:21:20 > 0:21:25We go back to Southampton to show you the finished house overlooking the river.
0:21:31 > 0:21:34But first, in Devon, they were sure they'd thought of everything.
0:21:34 > 0:21:37It would all work in a nice, orderly fashion.
0:21:37 > 0:21:39Obviously that didn't happen.
0:21:41 > 0:21:47Earlier when we were in the Devon village of Galmpton, I met Mark and his wife Loretta.
0:21:47 > 0:21:50They'd just paid £178,000 for this semi-detached property
0:21:50 > 0:21:55which was going to be their new home. It had a first-floor extension that you couldn't miss,
0:21:55 > 0:22:00but the house had got the thumbs-up from their brother-in-law who's a builder.
0:22:00 > 0:22:06When we left them they were about to embark on an ambitious building project.
0:22:06 > 0:22:11They were expecting their second child so had set themselves a three-month deadline.
0:22:12 > 0:22:19Well, now, over eight months later we met up again with Mark, Loretta and their two children,
0:22:19 > 0:22:23- Hayden and his new sister Aliza. - # Baby love... #
0:22:23 > 0:22:29The refurbishment of the house is complete. Downstairs two rooms were already knocked into one,
0:22:29 > 0:22:36but now the wall to the kitchen is gone as well, and a huge open-plan living space has been born.
0:22:36 > 0:22:41But Mark and Loretta knew timing was critical if they were to create such an ambitious new house
0:22:41 > 0:22:44involving so much work.
0:22:45 > 0:22:49We bought the house about eight months ago.
0:22:49 > 0:22:56We needed about eight weeks in which to do the main construction work downstairs, putting in the steels
0:22:56 > 0:23:02and replastering and rebuilding walls, and then our daughter was born six months ago,
0:23:02 > 0:23:05and we moved in the week after she was born.
0:23:05 > 0:23:07We had expected we'd move in and then the baby would come,
0:23:07 > 0:23:12and it would all work in a nice, orderly fashion. Obviously that didn't happen.
0:23:12 > 0:23:15Isn't that always the way with these things?
0:23:17 > 0:23:22It was a tight timescale with having had baby Aliza, and we were very lucky.
0:23:22 > 0:23:27We called in friends and family. We've had a tremendous amount of help.
0:23:27 > 0:23:31It was tight, it was military almost, but, yeah, we did it.
0:23:32 > 0:23:37Getting the nursery finished upstairs was vital, as well as Hayden's bedroom.
0:23:37 > 0:23:41But downstairs modifying the kitchen was a challenge.
0:23:41 > 0:23:47There was once a door here and then a long wall running up here, closing off the kitchen quite a bit.
0:23:47 > 0:23:51We did actually have an external door over there, but it's all changed,
0:23:51 > 0:23:55and we've opened it up to have that open living space for all the family, really.
0:23:55 > 0:24:02It was nice putting the big steels in. That was a big day when we came on to site and saw that happening.
0:24:02 > 0:24:05One of the big attractions here was the very generous accommodation.
0:24:05 > 0:24:11The look Loretta created from the pages of her mood book is fantastic! So who did the work?
0:24:12 > 0:24:16Most of the work was done initially by my brother-in-law and his team of builders.
0:24:16 > 0:24:25When his work finished, Mark and our team of family and friends, who we will be forever grateful to,
0:24:25 > 0:24:27came in in their masses and worked until midnight,
0:24:27 > 0:24:32they would come after work and at the weekends, so they were fantastic.
0:24:32 > 0:24:34There were some unexpected problems, though.
0:24:34 > 0:24:40The old plaster was falling off, so 90% of the house has been replastered.
0:24:40 > 0:24:46The electrics and boiler have been changed, but outside the garage remains at least for the time being.
0:24:46 > 0:24:50It's been great for storing all the building materials.
0:24:50 > 0:24:55The new cladding around the main bedroom is a real improvement.
0:24:55 > 0:25:00With two young children, Mark and Loretta's bedroom has become a great place to escape to
0:25:00 > 0:25:03for some well-earned relaxation.
0:25:03 > 0:25:10Well, this room needed not an awful lot doing to it, so we decorated and had new windows put in.
0:25:10 > 0:25:16We had to have a new roof put on, and then we also actually added an en-suite which was a very clever idea
0:25:16 > 0:25:21from our builder, who's my brother-in-law, just to steal a bit of space from the bathroom,
0:25:21 > 0:25:25and tag a little shower room on. So it's a godsend, it's lovely,
0:25:25 > 0:25:31and it's a child-free space for Mark and I just to go and have a nice powerful shower,
0:25:31 > 0:25:36and it's really added actually to the house. It's given us that extra... not a full bathroom, but it's great.
0:25:36 > 0:25:43Friends and family have all pitched in to help and a lot of the work has been done at mates' rates, I'm sure,
0:25:43 > 0:25:49but how much has it all cost on top of the £178,000 they paid at auction?
0:25:49 > 0:25:57Well, we did quite well. We were hoping to spend around 30 to 35, but in actual fact we went up to 40.
0:25:58 > 0:26:02Time to see if two local estate agents are impressed
0:26:02 > 0:26:05by the open-plan design downstairs and quality finish throughout.
0:26:05 > 0:26:09It's absolutely lovely. Couldn't ask for anything better.
0:26:09 > 0:26:14They've done so much. Everything sort of inside has completely changed.
0:26:14 > 0:26:16It's a great property as you walk through the door.
0:26:16 > 0:26:19This living room here is a fabulous open space.
0:26:19 > 0:26:23I quite like the downstairs, it all flows really nice.
0:26:23 > 0:26:25Also upstairs in the master bedroom
0:26:25 > 0:26:30they've done that really well by putting in an en-suite which wasn't there before.
0:26:30 > 0:26:36They've done a great job inside, but unfortunately your first appearance from the outside is the driveway.
0:26:36 > 0:26:40That would be the icing on the cake to finish that off.
0:26:42 > 0:26:46If the couple did change their minds and decide to move,
0:26:46 > 0:26:50what sort of income could they generate if they were to look for tenants?
0:26:50 > 0:26:55If you were to rent this property, I think you would get £900 or £950 per calendar month.
0:26:55 > 0:27:03Well, I would think rental market at the moment, you'd be looking at £800 to £850 per calendar month.
0:27:03 > 0:27:09Well, we've got no plans for rental, so that really wouldn't be a temptation.
0:27:09 > 0:27:12- It's interesting to know but this is our family house.- Yeah.
0:27:12 > 0:27:18How much is the house now worth? Remember they paid £178,000 at auction,
0:27:18 > 0:27:24and spent £40,000 on the refurbishment, making a total of £218,000.
0:27:24 > 0:27:30I would suggest putting it on the market at an asking price in the region of £265,000.
0:27:30 > 0:27:35If you were to put this property on the market, you would get £270,000.
0:27:35 > 0:27:43They could look at possibly finishing off the garden, the garage, and possibly going up also into the loft.
0:27:43 > 0:27:47They'd be looking at achieving then around £290,000.
0:27:49 > 0:27:54So potentially about £50,000 gross profit before the usual selling expenses.
0:27:54 > 0:28:00That figure could rise to around £70,000 if the extra work was done with a loft conversion.
0:28:00 > 0:28:05- What do they think of that? - That's fantastic!- That's good.
0:28:05 > 0:28:10- That's good news. - That's really good. Better than we thought, I think.
0:28:10 > 0:28:14- Makes all the hard work very worthwhile.- Yeah.- Excellent.
0:28:15 > 0:28:20We really want to enjoy this place now that we've obviously made our mark on it, settle down for a while,
0:28:20 > 0:28:23cos it's been a busy six months with baby and the new house.
0:28:23 > 0:28:26We're just happy to be in and enjoy, we're close to the beach,
0:28:26 > 0:28:30we're close to the river...it's an ideal place to live for a family.
0:28:44 > 0:28:52This is historic Rochester in Kent, home to over 750 listed buildings, including the Cathedral
0:28:52 > 0:28:57and the historic Castle. The whole area was a great favourite of the novelist Charles Dickens
0:28:57 > 0:29:02who based many of his stories here. Well, you know what? The property I'm here to see...
0:29:02 > 0:29:04I've got great expectations!
0:29:05 > 0:29:10Rochester and other Medway towns have recently benefited from big investment
0:29:10 > 0:29:17that's planned to continue. And property in this part of Rochester has always been highly sought after.
0:29:17 > 0:29:23Well, the property that came up for auction is just a few minutes' walk from the town centre.
0:29:23 > 0:29:29And it's this, a Victorian mid-terrace property, three storeys at a guide price of £140-150,000.
0:29:29 > 0:29:35It's currently separated out into three individual flats and it's in need of serious modernisation.
0:29:35 > 0:29:37Let's take a look.
0:29:40 > 0:29:45You never know quite what to expect when catalogues say "modernisation",
0:29:45 > 0:29:51but in fact this doesn't look too bad. Yes, it's woodchip city, but it's all right.
0:29:53 > 0:29:57This is the first flat. Not too bad size. This is the sort of front sitting room area there.
0:29:57 > 0:30:02You've got that bay window and some open fires which it would be nice to see fully operational.
0:30:02 > 0:30:06Obviously you'd want to have those swept. This is a kind of a rear sitting room area here...
0:30:06 > 0:30:12and then where the heck's the bedroom? Must be through the kitchen. That can't be right.
0:30:13 > 0:30:17So through to the kitchen, and, well, the bedroom's not in here,
0:30:17 > 0:30:21though what is here is a pretty tired and dated old bathroom,
0:30:21 > 0:30:25and you need to get rid of that for starters!
0:30:25 > 0:30:27# Rip it up and start again
0:30:27 > 0:30:33# I said rip it up and start again... #
0:30:33 > 0:30:40Ooh! Well, I guess that must be the bedroom... which I suppose is fair enough...
0:30:40 > 0:30:44It is only a one-bedroomed flat. It's the fireplace that throws me.
0:30:44 > 0:30:48Oh, well, that said, not a bad size. Let's carry on.
0:30:49 > 0:30:54The ground-floor flat also comes with a garden and this strikingly colourful cellar.
0:30:54 > 0:31:00Flat B on the first floor is smaller than the flat below and in a worse state of repair.
0:31:00 > 0:31:05I'd replace both the bathroom and the kitchen and get rid of that woodchip.
0:31:05 > 0:31:12However, the saving grace, is that great bay-fronted window, flooding the room with light.
0:31:12 > 0:31:18So up on to the top floor and the third of the three flats. Now this one is decidedly tiny,
0:31:18 > 0:31:22basically one big room here, and then a kitchen and a loo off it.
0:31:22 > 0:31:26So...what do you do with this property, then? Here's the dilemma.
0:31:26 > 0:31:31Do you convert it back into a house? I mean, it would make a wonderful family home, for sure,
0:31:31 > 0:31:34or just stick with three flats when it's already got the permission to be that?
0:31:34 > 0:31:39And I reckon that's what you should do. Cos even something as small as this is going to get you, what,
0:31:39 > 0:31:42£80, £90 a week? So keep it as three flats,
0:31:42 > 0:31:46this house suddenly turns into a big income-generating machine.
0:31:46 > 0:31:52# Money, money, money, money, money, money, money, money...
0:31:52 > 0:31:54# From that money machine... #
0:31:56 > 0:32:00Let's hear what a local estate agent thinks about the place.
0:32:00 > 0:32:04In this particular area, the majority of houses are big houses,
0:32:04 > 0:32:09and there are one or two that have been converted into flats,
0:32:09 > 0:32:11but the majority are still family homes.
0:32:11 > 0:32:18So we know what needs to be done in terms of renovation, but would it be best to keep it as flats?
0:32:18 > 0:32:22With this property, as it's already converted, I would tend to leave it.
0:32:22 > 0:32:26I think to put it back into a family home would cost an awful lot of money
0:32:26 > 0:32:29and I think an income that you can get on this would be far better.
0:32:29 > 0:32:32Speaking of incomes...
0:32:32 > 0:32:36For the top flat being smaller, then I think we're looking at £500 per calendar month.
0:32:36 > 0:32:43This one on the middle floor, being slightly bigger, then about £550 to £600 per calendar month,
0:32:43 > 0:32:47and the bottom one, the bigger one, 600-650 per calendar month.
0:32:47 > 0:32:54Going by these figures, the combined rental for the three flats could be a substantial income
0:32:54 > 0:32:58of around £20,000 a year. Not to be sniffed at!
0:32:59 > 0:33:02Well, I do love these kind of properties
0:33:02 > 0:33:05and it would make a fantastic family home,
0:33:05 > 0:33:10but I think logically and financially the best thing to do is to stick with what it is,
0:33:10 > 0:33:14three flats, do them up, bit of refurbishment, get them back on the market, get people in there,
0:33:14 > 0:33:20it turns itself into a money-making machine. Let's see who fancied that when it went to the auction.
0:33:26 > 0:33:28Where do you want to start? Guide 140-150.
0:33:28 > 0:33:33Start me 150? I'm obliged. Right in the middle of the aisle. 150, I'm away.
0:33:33 > 0:33:35Now, 155. At 155.
0:33:35 > 0:33:39155...and 60. 160 and 5.
0:33:39 > 0:33:42165. 165 and 70?
0:33:42 > 0:33:46And 5. 175. 175 and 80.
0:33:46 > 0:33:48180 and 5.
0:33:48 > 0:33:54185 I'm looking for. 185 I've got. 190. 190 and 5?
0:33:54 > 0:33:56200. 200 and 5.
0:33:56 > 0:33:59202.
0:33:59 > 0:34:00205.
0:34:00 > 0:34:03And 7. 207. And 10.
0:34:03 > 0:34:05210. And 12.
0:34:05 > 0:34:09Absolutely worth it. 212 I've got. I'll take 214 from you.
0:34:09 > 0:34:11214 and 16?
0:34:11 > 0:34:16There it's with you at 216. 218, 218 and 20. 220?
0:34:16 > 0:34:19220, it's with you again. 222. Up to 222.
0:34:19 > 0:34:22And 4. Now it's with you, 226.
0:34:22 > 0:34:26For the first time at 226... If anybody else is coming in, now's your chance.
0:34:26 > 0:34:28£226,000 for the second time.
0:34:28 > 0:34:34226, third and final time. All done, that's yours at 226.
0:34:34 > 0:34:41This potentially lucrative property was secured by Colin for £226,000,
0:34:41 > 0:34:44a whopping £76,000 over the guide price.
0:34:44 > 0:34:52And taking no notice of that guide price wasn't the only golden rule he broke when he bought it at auction.
0:34:52 > 0:34:57- Colin, great to meet you.- You too. - Congratulations. Tell me why you wanted to buy the house.
0:34:57 > 0:35:01Well, Roebuck Road's a good location within Rochester. I mean, just at the end of the road
0:35:01 > 0:35:05you've got a road takes you straight into Rochester High Street behind the Castle.
0:35:05 > 0:35:10So really it was a location issue. I didn't actually look inside the house before the auction,
0:35:10 > 0:35:15- so it was a surprise to me coming through the front door as it was to you today.- You didn't look at it?
0:35:15 > 0:35:19I did everything that you probably say don't do! Which is didn't look at it, didn't check the legals,
0:35:19 > 0:35:24didn't do anything. Just turned up at the auction and bought it because of the location. That's the truth.
0:35:24 > 0:35:29- Wow!- Hmm.- It's a lot of money to gamble in that way, don't you think?
0:35:29 > 0:35:33It is, but again I've done a little bit of buy-to-let before.
0:35:33 > 0:35:36If you look at the location, you look at the three flats,
0:35:36 > 0:35:41yeah, it could have been pretty awful on the way in, but perhaps I like a little gamble now and again.
0:35:41 > 0:35:43Wow!
0:35:44 > 0:35:47At what point did you decide you were going to buy it, then?
0:35:47 > 0:35:50On the way into auction, I think... this was the favourite property I had.
0:35:50 > 0:35:55There was about four or five at the auction I was looking at, and this was my favourite, so...
0:35:55 > 0:35:59I think when...we went a little bit over what I'd set as my limit, I'd say...
0:35:59 > 0:36:02- So you went over your limit as well? - As well!
0:36:02 > 0:36:06- On the tick box, you've got all crosses so far!- We went over.
0:36:06 > 0:36:10Yeah, exactly. By some £26,000, yeah.
0:36:10 > 0:36:12- By what?- Well, I think we got into a competition.
0:36:12 > 0:36:16You know what happens at auction. Did all the things wrong again.
0:36:17 > 0:36:20# You've got to know when to hold 'em
0:36:20 > 0:36:23# Know when to fold 'em
0:36:23 > 0:36:28# Know when to walk away Know when to run... #
0:36:28 > 0:36:32What did you think when you first walked through the door, having spent your money?
0:36:32 > 0:36:35I was pleasantly surprised in the ground floor. I like the ground floor a lot.
0:36:35 > 0:36:39I think the ground floor flat with the garden, someone's cared for this at some stage.
0:36:39 > 0:36:43The garden's been actually looked after. You can see it could be very nice place to live.
0:36:43 > 0:36:47Mid-floor could be nice but has had some kind of damage.
0:36:47 > 0:36:53The top floor, the benefits of the great view of the Castle and the Cathedral but it's quite small,
0:36:53 > 0:36:55so, yeah, I wasn't disappointed.
0:36:55 > 0:37:00It was as I probably expected it to be in terms of quality, so I'm not too disappointed.
0:37:01 > 0:37:05Colin owned his own recycling business which he sold a couple of years ago,
0:37:05 > 0:37:09but this isn't the first property he's bought and renovated.
0:37:09 > 0:37:14# There'll be time enough for countin' when the dealin's done... #
0:37:14 > 0:37:21I've done a couple of buy-to-lets previously and got out of it sort of mid-2000s, 2005, 2006,
0:37:21 > 0:37:25- sold up, and then decided to come back in now, yeah.- Right.
0:37:25 > 0:37:30- That's not bad timing, was it? You got out before... - We did very well, did very well.
0:37:30 > 0:37:34Bought in the late '90s, so we did very well on a couple of properties.
0:37:34 > 0:37:38And that was just really the sort of semi-pension scheme and decided to get out when it was peaky.
0:37:38 > 0:37:44It's all about timing and he seems to have got that spot on.
0:37:44 > 0:37:49# Know when to walk away Know when to run... #
0:37:49 > 0:37:52Talk me through exactly what you're going to do to the flats, then.
0:37:52 > 0:37:57OK, flat by flat. Flat A, the ground-floor flat that we're in now.
0:37:57 > 0:38:00I mean, this is a refurb in terms of decoration, really.
0:38:00 > 0:38:03The fireplaces will probably get opened up, but not used.
0:38:03 > 0:38:07They'll be sealed but opened to make them look reasonable. Then it's purely electrics.
0:38:07 > 0:38:12New bathroom. New bathroom goes in tomorrow, so there'll be a new suite. New flooring throughout.
0:38:12 > 0:38:17- Kitchen?- Kitchen, no. I think we can make it good.- Yeah. - I think the kitchen's reasonable.
0:38:17 > 0:38:24So on this floor no kitchen. On floor B, on the mid floor, that's going to end up with a new kitchen.
0:38:24 > 0:38:29It's going to end up with some bathroom changes, a shower put in certainly. New doors as well,
0:38:29 > 0:38:37I think, throughout. And up to the top floor. Top floor is a bit tight on space as you've seen, but...
0:38:37 > 0:38:39I've looked at it with a few people.
0:38:39 > 0:38:42I don't think there's much we can do except perhaps make it a bit more user-friendly.
0:38:42 > 0:38:47The shower room's going to get changed, the kitchen's going to get changed a little,
0:38:47 > 0:38:51to try and get in the kind of equipment we need in there. But that's it, really,
0:38:51 > 0:38:57- and then it's going to be decorated throughout.- Have you been through the numbers? What do you think?
0:38:57 > 0:38:59A little.
0:38:59 > 0:39:02I mean, we've spent 226 on the purchase.
0:39:02 > 0:39:08The refurb could cost us of course between a pound and 30-something thousand pounds,
0:39:08 > 0:39:12depending how far we go, but let's put a figure on it of 24, to take it to 250,
0:39:12 > 0:39:14cos it gives you nice round numbers...
0:39:14 > 0:39:21I think the rental value to me will be between 15 and 18 thousand a year on the three flats,
0:39:21 > 0:39:26- so the percentage isn't bad when you consider the bank rates today are so poor.- Right.
0:39:26 > 0:39:28At the moment there's a demand in this area.
0:39:28 > 0:39:34As it was told to me by a letting agent, you can let them in this area all day long, so cross our fingers.
0:39:34 > 0:39:40Colin's looking at an annual yield of between 6% and 8% if he gets those sort of rental incomes
0:39:40 > 0:39:46and sticks to his renovation budget and timescale. So this gamble may just pay off.
0:39:46 > 0:39:51So Colin breaking all the rules when it comes to buying properties -
0:39:51 > 0:39:55not seeing it before, not reading the legal, paying too much, getting carried away at the auction.
0:39:55 > 0:40:00Well, he may have got away with it, but really, really, really it is not something you should do.
0:40:00 > 0:40:05Because he could have got himself into a lot of problems, he really could.
0:40:05 > 0:40:08As it turns out, he's probably going to do exactly the right thing -
0:40:08 > 0:40:12keep it as three flats and turn it into a money-making machine.
0:40:12 > 0:40:15How will he get on? You can find out later in the show.
0:40:18 > 0:40:25Well, finding good tradespeople to do the work can often be the key to getting things done well and on time
0:40:25 > 0:40:29but some people decide to do it themselves to maximise profit.
0:40:29 > 0:40:34So have our buyers been getting stuck in or just stuck? Let's find out.
0:40:35 > 0:40:39Earlier in the programme we met retired couple Roger and Lindsay
0:40:39 > 0:40:41who bought
0:40:41 > 0:40:45this rundown three-bedroomed semi in Bitterne, Southampton, for £130,000.
0:40:45 > 0:40:50They were planning to renovate and use it as a temporary home for their son and family.
0:40:50 > 0:40:56And for Roger it was a chance to pursue his dream of refurbishing a property and, he hoped, selling it.
0:40:59 > 0:41:02But when we first returned seven months later,
0:41:02 > 0:41:05outside, the house still looked in a deep sleep.
0:41:07 > 0:41:14No work had started and inside there was no evidence of any refurbishment or of their son moving in.
0:41:15 > 0:41:17Roger explained the unexpected delay.
0:41:18 > 0:41:22In December I'd a total knee replacement, so...
0:41:22 > 0:41:25I've been a few months getting back to strength.
0:41:25 > 0:41:29My son has used the house to store furniture and goods
0:41:29 > 0:41:34while he's had his house renovated and...building work.
0:41:34 > 0:41:39As he was able to work around the builders, Roger and Lindsay's son had decided not to move in,
0:41:39 > 0:41:42taking the pressure off Roger getting the renovation done.
0:41:42 > 0:41:47While that gave him time for his knee to heal, it also provided an opportunity
0:41:47 > 0:41:48to think about the layout.
0:41:48 > 0:41:53Right, well, out here, once I've got the new roof on, and the double glazing,
0:41:53 > 0:41:56we're going to knock the extension down here
0:41:56 > 0:42:02and build a new extension right across the back and open up with a nice big kitchen-living room really,
0:42:02 > 0:42:07so it'll all conform quite nicely and the whole thing should look really good.
0:42:08 > 0:42:12Even though seven months had passed since buying the house,
0:42:12 > 0:42:17the pressure was off as their son's family didn't need to move in.
0:42:17 > 0:42:21Roger was content to wait for property prices to rise following the credit crunch.
0:42:21 > 0:42:26Now, after another four months, Roger and his team of builders
0:42:26 > 0:42:29have completed the refurbishment. The property has been transformed
0:42:29 > 0:42:33and the kerb appeal is 10 out of 10. Roger and his wife Lindsay
0:42:33 > 0:42:40came to show us around. New windows and a door have been installed and a new porch,
0:42:40 > 0:42:41plus the roof's been replaced.
0:42:44 > 0:42:51Inside, the front living room that had stored their son's furniture, is now a stripe-free zone.
0:42:51 > 0:42:55It's been painted magnolia and they've added a fine new fire.
0:42:55 > 0:43:01Remember, the house was a fairly standard layout with a dining room and a kitchen.
0:43:01 > 0:43:07Now, after some serious modifications, there's a fantastic and huge kitchen-diner,
0:43:07 > 0:43:11using the two original rooms, plus the new extension that Roger's built.
0:43:16 > 0:43:20Right, well, we're coming into the new room now. This was the old kitchen before.
0:43:20 > 0:43:25It had an entrance through a door in that wall which we've completed, filled that in,
0:43:25 > 0:43:29knocked the wall down between the kitchen and the dining room here,
0:43:29 > 0:43:34and then we had this whole wall knocked out, which was the back of the house previously...
0:43:34 > 0:43:37the new extension is there with the skylights.
0:43:37 > 0:43:43The kitchen just completed last week and now we're practically there so a few little bits just to finish off.
0:43:43 > 0:43:48Although their son had managed to stay in his house during his building work,
0:43:48 > 0:43:51Roger didn't start the refurbishment immediately.
0:43:51 > 0:43:54He was waiting for the builders he'd used before to become available,
0:43:54 > 0:43:58but when they did things really got underway.
0:43:58 > 0:44:02To start with, my nephew did all the double glazing for me, and I think I followed that
0:44:02 > 0:44:09by having a completely new synthetic roof on, kept all the slates which we then used to build the extension
0:44:09 > 0:44:10and front porch.
0:44:10 > 0:44:16All the walls were redone, all the ceilings redone, central heating...
0:44:16 > 0:44:21Absolutely all the services have all been renewed right the way through, so in fact there's really nothing
0:44:21 > 0:44:23that has been left all.
0:44:23 > 0:44:26He's even managed to create a loo in the cupboard under the stairs.
0:44:26 > 0:44:29Roger's wife Lindsay loves the layout.
0:44:31 > 0:44:35You feel good about it, you know, seeing the house as it is,
0:44:35 > 0:44:39because we did wonder if ever we would get there sometimes, but it's there.
0:44:40 > 0:44:43Roger got planning permission for the extension
0:44:43 > 0:44:48and the garage, but decided to leave the garage for the new owner to build if required.
0:44:48 > 0:44:54As for the garden with its views across the river, Roger did his level best to save money.
0:44:55 > 0:44:59I really didn't initially know what I was going to do with it,
0:44:59 > 0:45:03but then once we started knocking walls down and digging out the foundations,
0:45:03 > 0:45:08it suddenly twigged that I could use all of that material, instead of paying for it to be taken away,
0:45:08 > 0:45:11to fill in the slope and level off the garden.
0:45:11 > 0:45:18The project has been Roger's baby, something he's wanted to do for years, so what was Lindsay's role?
0:45:19 > 0:45:26I haven't helped much here...because it's been mostly knocking walls down, putting walls up,
0:45:26 > 0:45:30and I'd have got in the way, so I've left it to the chaps.
0:45:30 > 0:45:36Upstairs the layout of the rooms hasn't changed, but that's about the only detail that remains the same.
0:45:38 > 0:45:43Well, upstairs all the three bedrooms and the bathroom ceilings have all been replastered.
0:45:43 > 0:45:49Of course the three bedrooms benefit from new windows and the rewiring that's been done throughout.
0:45:51 > 0:45:55So in this room we've got rid of the stripy wallpaper,
0:45:55 > 0:46:01and all the rooms we have magnolia, so all nice and clean and fresh.
0:46:01 > 0:46:07As the extension was only on the ground floor, there wasn't room to modify upstairs at all,
0:46:07 > 0:46:09but what about the bathroom?
0:46:11 > 0:46:16This is the small family bathroom. It doesn't look anything like it did when I first came in here.
0:46:16 > 0:46:21Put a nice new shower suite in. Strangely enough, the tiles... they looked very shoddy
0:46:21 > 0:46:24but by the time I polished them up with some sugar soap, it looks really shiny,
0:46:24 > 0:46:27really nice, and it's turned out really good.
0:46:28 > 0:46:33So let's hear about the finances. How much did Roger's refurbishment cost
0:46:33 > 0:46:37on top of the £130,000 he paid at the auction?
0:46:37 > 0:46:42The original budget was 30,000 and I really didn't want to spend any more than that,
0:46:42 > 0:46:48I thought that would be our maximum but, as things do happen, it went up to £50,000,
0:46:48 > 0:46:51but more than happy for that.
0:46:51 > 0:46:55It seems Roger's had a whale of a time working on this project.
0:46:55 > 0:46:59He's been here most days helping the builders to fulfil his dream.
0:47:01 > 0:47:05I got very used to the view over the river...just sat, having my lunch, looking out,
0:47:05 > 0:47:07and it's been really lovely.
0:47:07 > 0:47:12Something he's always wanted to do when he retired, so hopefully he's fulfilled his ambition now
0:47:12 > 0:47:14and will have a rest.
0:47:14 > 0:47:17Well, I'm not so sure about that!
0:47:17 > 0:47:21I should need the summer, I think, for my golf and my sailing, and perhaps take a holiday...
0:47:21 > 0:47:26and maybe in the autumn have a look at maybe doing the same again.
0:47:26 > 0:47:30It's a lovely house. I just hope it sells quickly.
0:47:30 > 0:47:34Well, time to get some expert marketing advice
0:47:34 > 0:47:35from two local estate agents.
0:47:39 > 0:47:40The thing I most like
0:47:40 > 0:47:42about the property is the extension,
0:47:42 > 0:47:46and what he's done to the back room, i.e. kitchen-family room.
0:47:46 > 0:47:49I think the finish is pretty good. I like the extension to the rear
0:47:49 > 0:47:53and the open-plan dining room-kitchen, that sort of thing.
0:47:53 > 0:47:55Massive kitchen area which is great.
0:47:55 > 0:47:58The garden's obviously changed quite a bit from our last visit.
0:47:58 > 0:48:01It had quite a bit of a drop going down, it's been levelled out,
0:48:01 > 0:48:05and, as you know, you can benefit from the views of Southampton Waters.
0:48:05 > 0:48:09Before this house was pretty dated, it was a pretty tired house...
0:48:09 > 0:48:12now it's got the feel of a new house.
0:48:12 > 0:48:16Lots of boxes ticked, but how much is the house now worth?
0:48:16 > 0:48:22Remember, the couple paid £130,000 at the auction and have spent £50,000 on the work,
0:48:22 > 0:48:26making £180,000 in total.
0:48:26 > 0:48:29I value the property at £195,000.
0:48:29 > 0:48:32I recommend you put this on the market at around £210,000.
0:48:32 > 0:48:39On those evaluations that's at least £15,000 gross profit before the usual deductions.
0:48:40 > 0:48:46I should feel confident that we've covered everything if we got somewhere in the region of £200,000,
0:48:46 > 0:48:48but anything over that would be a bonus,
0:48:48 > 0:48:55- so, yeah...so 195 to 210, yeah. So round about 200 sounds really good. - Good.
0:48:59 > 0:49:05A long project but very satisfying, and I've done a lot more to it than what I'd originally thought,
0:49:05 > 0:49:08- but fulfilled what I wanted to do. - Yeah.
0:49:08 > 0:49:13I think we've probably transformed it from the worst house in the street to...
0:49:13 > 0:49:15- The best.- One of the best, anyway.
0:49:15 > 0:49:18And I think the views in the garden are to die for,
0:49:18 > 0:49:23and by the time we've got a nice lawn on it before we leave, then it'll be nice for a family home.
0:49:27 > 0:49:30We return now to Rochester in Kent.
0:49:30 > 0:49:35Colin bought this Victorian house which had been converted into three one-bedroom flats
0:49:35 > 0:49:41at auction for £226,000. Colin had sold his recycling business
0:49:41 > 0:49:48and thought he'd give property development a go, but he broke a few golden rules.
0:49:48 > 0:49:52I did everything that you probably say don't do! I didn't look at it, didn't check the legals,
0:49:52 > 0:49:55didn't do anything. Just turned up and bought it because of the location.
0:49:55 > 0:50:00But it turned out the property was in a conservation area,
0:50:00 > 0:50:02so remember - always read the paperwork.
0:50:02 > 0:50:07Now, three-and-a-half months later, Colin's builders have finished. So what's been achieved?
0:50:09 > 0:50:15The ground-floor single-bedroom flat has been redecorated and had the floors recovered throughout.
0:50:17 > 0:50:19The kitchen units were OK, so they've been kept,
0:50:19 > 0:50:26but thankfully the avocado bathroom suite has gone to be replaced with a white suite and a new shower.
0:50:29 > 0:50:32Even the cellar's had a lick of paint.
0:50:33 > 0:50:38Upstairs the one-bedroom first-floor flat has been completely redecorated
0:50:38 > 0:50:41and an original fireplace was uncovered.
0:50:41 > 0:50:48Although the bathroom has got a new suite, Colin decided against keeping the bath in favour of a shower,
0:50:48 > 0:50:53but the main layout change has been how you access the kitchen and the bathroom beyond it.
0:50:56 > 0:51:01Before we did the work, you entered the kitchen in this space here,
0:51:01 > 0:51:06came through a smaller gap here, there were some units on this side, and there was a door over there
0:51:06 > 0:51:09which leads to a bathroom with a bath and a toilet here.
0:51:09 > 0:51:12And we've struggled with how to make this a more useable space,
0:51:12 > 0:51:15but we've ended up by changing the wall configurations,
0:51:15 > 0:51:19so we now have the doorway here and we go through to a more useable kitchen in this space,
0:51:19 > 0:51:22and I think this works out an awful lot better.
0:51:22 > 0:51:25You still enter the kitchen from the living room in the same place,
0:51:25 > 0:51:31but by moving the door to the bathroom, the kitchen now has three uninterrupted walls for the units,
0:51:31 > 0:51:34which is much better.
0:51:34 > 0:51:40The top-floor studio flat with its lounge-cum-bedroom has also been decorated throughout.
0:51:40 > 0:51:46It's much brighter up here now, and, although the kitchen units remain, the shower has been replaced.
0:51:46 > 0:51:49The whole property now has a modern feel to it,
0:51:49 > 0:51:53though Colin has also managed to bring back some of the original character.
0:51:55 > 0:51:57The fireplace was sealed up originally,
0:51:57 > 0:52:03so when we took over the flat all the fireplaces had been sealed, boards nailed against the wall...
0:52:03 > 0:52:05We uncovered three fireplaces
0:52:05 > 0:52:09and found that they were original Victorian cast-iron fires still in place,
0:52:09 > 0:52:14and in this particular fire, the grate had just been hidden up the chimney
0:52:14 > 0:52:15with a whole load of soot and things like that
0:52:15 > 0:52:17that all came falling out at the same time,
0:52:17 > 0:52:21so we've put it back as a feature which I think makes the room.
0:52:24 > 0:52:27Colin used contractors to do all the work here which can't have been cheap.
0:52:27 > 0:52:34His original budget was £35,000 maximum. Has using professionals meant going over that?
0:52:36 > 0:52:42We ended up spending just over £24,000 which is within budget, which I'm pleased about.
0:52:42 > 0:52:46I'd set a total budget, because you weren't sure when you buy something at auction...
0:52:46 > 0:52:50perhaps the level of problem you might find in a house that's a Victorian house...
0:52:50 > 0:52:55Structurally this house is sound. There's been no real problems. It's been a cosmetic journey, really,
0:52:55 > 0:53:00just to make the place look and feel nicer for the tenants that are going to come through it.
0:53:01 > 0:53:07It's taken nearly 12 weeks to complete the job, a month longer than expected,
0:53:07 > 0:53:11but Colin's ended up with three very good flats, so what's the plan for them?
0:53:12 > 0:53:16Well, at this moment, I think I intend to let the three flats,
0:53:16 > 0:53:20and, again, taking a long-term view, we'll look at it and say,
0:53:20 > 0:53:24"Well, we want a revenue stream for the next ten years." Beyond ten years, who knows?
0:53:24 > 0:53:30But I think I'm quite comfortable to sit with the house, look after it for ten years and then see.
0:53:30 > 0:53:35If there were ever an opportunity to return it to being a family home in the future, if the market allowed,
0:53:35 > 0:53:36then I'd look at that as well.
0:53:36 > 0:53:40It's good to see that he's keeping his options open for the future.
0:53:44 > 0:53:47We invited two local estate agents to take a look
0:53:47 > 0:53:50and tell us how they think Colin's done.
0:53:52 > 0:53:54Clean, it's tidy.
0:53:54 > 0:53:57It's going to make it, if he decides to rent them out,
0:53:57 > 0:54:01a nice rentable property for young couples or single people.
0:54:01 > 0:54:05I think it's had a very clean, tidy makeover.
0:54:05 > 0:54:09The only drawbacks would be the lack of space
0:54:09 > 0:54:13for fitting an oven and hob in the first-floor apartment.
0:54:13 > 0:54:16If he was going to sell it, then I would say he should have upgraded a bit more,
0:54:16 > 0:54:20perhaps rather than storage heaters, putting gas central heating
0:54:20 > 0:54:21to each have their own systems,
0:54:21 > 0:54:25decorate the walls and make it a little bit more warm and perhaps better carpets.
0:54:25 > 0:54:30I would suggest if he was going to sell to sell the whole lot as one block to an investor.
0:54:30 > 0:54:35It's not what Colin intended but, out of interest, what would he get for that?
0:54:35 > 0:54:40Remember the property originally cost £226,000 at auction,
0:54:40 > 0:54:44a massive £76,000 over the upper guide price.
0:54:44 > 0:54:51Colin spent just over £24,000 renovating it, making a total spend of £250,000,
0:54:51 > 0:54:53plus legal fees and expenses.
0:54:55 > 0:55:00I think if he put the whole lot on the market and an investor would take it on,
0:55:00 > 0:55:06he'd be looking round about £300,000, maybe a bit more with all the interest he would achieve.
0:55:06 > 0:55:12To sell this property to an investor we'd be looking at achieving £325,000.
0:55:12 > 0:55:14That's better than I would have thought, actually,
0:55:14 > 0:55:20because clearly I purchased above the guide price that was at the auction by some way...
0:55:20 > 0:55:25and it stands me in at about 250, so, I mean, that's a good upside.
0:55:25 > 0:55:29His plan has always been to rent the flats out individually.
0:55:29 > 0:55:34The ground-floor flat has the advantage of a garden, so how much would he get for that one?
0:55:35 > 0:55:43The ground-floor flat, with the garden, I would anticipate we should achieve £650 per calendar month.
0:55:43 > 0:55:46I would be looking at achieving 525 per calendar month.
0:55:46 > 0:55:50What about the medium-sized flat on the first floor?
0:55:50 > 0:55:55I would have said we'd be looking round about £600 per calendar month on that one.
0:55:55 > 0:56:00I would achieve around about £500 per calendar month.
0:56:00 > 0:56:03And, finally, the small studio flat?
0:56:03 > 0:56:10The top flat, I think, we would be looking around £500 to £550 per calendar month.
0:56:10 > 0:56:14I would try to achieve 450 per calendar month.
0:56:14 > 0:56:19I think somewhere between the two agents' estimations is about where I'm figuring,
0:56:19 > 0:56:22so those figures do sound fair to me, yeah.
0:56:22 > 0:56:27Potentially that's a combined rental income of up to £1,800 a month.
0:56:27 > 0:56:31That represents a healthy yield of around 7 to 8.5%.
0:56:31 > 0:56:34Colin used to have his own recycling business,
0:56:34 > 0:56:38so how has he found the challenge of recycling these three flats?
0:56:38 > 0:56:41I've enjoyed working on it. My personal involvement hasn't been great.
0:56:41 > 0:56:44I've not done an awful lot of work myself if...hardly any.
0:56:44 > 0:56:50But it's a fun project to do. It's nice to see the property return to some good fashion.
0:56:50 > 0:56:53Would I do it again? I'd do it again if the right location came up, yes.
0:56:56 > 0:57:00Make sure you join us next time for more properties going under the hammer!
0:57:00 > 0:57:01- We'll see you then. Goodbye. - Goodbye.
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