0:00:02 > 0:00:03Welcome to Homes Under The Hammer.
0:00:03 > 0:00:07Buying at auction gives people the chance to get properties that are in need of work.
0:00:07 > 0:00:12People like to put their own stamp and style on their property, and hopefully make a bit of a profit.
0:00:12 > 0:00:17There's much more chance that you might do that when you buy your home...under the hammer.
0:00:42 > 0:00:46We love the buzz and the excitement in the auction room.
0:00:46 > 0:00:50You can almost sense the hope and frustration in the air.
0:00:50 > 0:00:53And you never know what's going to happen until the very last second.
0:00:53 > 0:00:56So, what tempted the buyers on today's programme?
0:00:58 > 0:01:02Just outside Derby, I come across a real hidden gem.
0:01:04 > 0:01:06All in all, it's a stonking property.
0:01:06 > 0:01:11In west London, there's a cautionary tale to tell.
0:01:11 > 0:01:17If you didn't realise how important it is to view properties before the auction, you do now.
0:01:18 > 0:01:21And on a trip to Hastings in Sussex,
0:01:21 > 0:01:25I find a design feature that's likely to divide opinion.
0:01:25 > 0:01:27What is this all about?!
0:01:27 > 0:01:30All these properties have been sold at auction.
0:01:30 > 0:01:35We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:35 > 0:01:37Are we all done? Sold.
0:01:41 > 0:01:46This is Chellaston. Once a village in its own right, now a popular suburb of Derby,
0:01:46 > 0:01:50about three miles south of the city centre.
0:01:50 > 0:01:55Well, I am very excited, because I'm here to see a Victorian semi-detached property
0:01:55 > 0:02:00which the auction catalogue describes as being in "unspoilt condition",
0:02:00 > 0:02:05so I'm thinking stripped floorboards, old-fashioned fireplaces, high ceilings...
0:02:06 > 0:02:13..and mould, and damp, and a real mess inside, and...
0:02:24 > 0:02:31The guide price was £160,000 for this four-bed semi built in 1893.
0:02:31 > 0:02:35From the outside at least, it seems a potential gem,
0:02:35 > 0:02:38but it also looks as though it needs some tender loving care.
0:02:39 > 0:02:41Wow! Well, you know what?
0:02:41 > 0:02:44I'm liking what I'm seeing.
0:02:44 > 0:02:47Erm, lovely bit of stained glass on that door there.
0:02:47 > 0:02:51Big, old-fashioned door, and tiling on the floor in the hallway here.
0:02:51 > 0:02:53Wow!
0:02:53 > 0:02:58Er, I think it's teetering on the side of being a real find, I have to say.
0:02:58 > 0:03:00Look at these doors. They're all original.
0:03:00 > 0:03:03Get those stripped back, how beautiful would they be?
0:03:03 > 0:03:05Look at that! Fantastic! Old fireplace.
0:03:05 > 0:03:08It... Straight away, I'm thinking this house
0:03:08 > 0:03:11has not really been touched that much for many, many years.
0:03:11 > 0:03:15And that is so exciting!
0:03:15 > 0:03:19- # Oh happy day - Oh happy day... #
0:03:19 > 0:03:22With another large reception room across the hallway -
0:03:22 > 0:03:24again, with an original fireplace -
0:03:24 > 0:03:27this place just gets better and better.
0:03:27 > 0:03:29It's easy to get carried away,
0:03:29 > 0:03:33and forget about some of the practicalities that a restoration will throw up.
0:03:33 > 0:03:38For a start, things like the electrics. These are ancient - they'll have to be replaced.
0:03:38 > 0:03:42I imagine that the pipework is some of the original lead pipework,
0:03:42 > 0:03:45so that'll have to go, and all that has to be factored into your budget.
0:03:45 > 0:03:48A real disappointment here, though. This is the kitchen,
0:03:48 > 0:03:51and compared to the rest of the house, it's just way too small.
0:03:51 > 0:03:54The good news, though, is on the other side of there,
0:03:54 > 0:03:58that is a dining area, and I would take out this wall to create
0:03:58 > 0:04:02that central kitchen/living area that the house really needs.
0:04:02 > 0:04:04And then, just let your imagination run riot.
0:04:10 > 0:04:15Some thought is needed about how to incorporate old and new.
0:04:15 > 0:04:18And what to keep, update or remove.
0:04:18 > 0:04:22But I think the bare bones you have here are fantastic.
0:04:22 > 0:04:26So, up here on the first floor, two good size bedrooms.
0:04:26 > 0:04:29One at the front there, useful little loo on the landing there.
0:04:29 > 0:04:35Through to the second bedroom - wonderful that they've got the open fireplaces. What a great feature.
0:04:35 > 0:04:38It's all great, until you come to this part of the house.
0:04:38 > 0:04:41This, unfortunately, is the only bathroom in the property.
0:04:41 > 0:04:45Well, a big disadvantage is you have to access it through that bedroom.
0:04:45 > 0:04:49So, when you're doing the refurbishment,
0:04:49 > 0:04:51you'd think about re-siting this.
0:04:51 > 0:04:55One thing you're not going to get rid of is that roll-top bath.
0:04:55 > 0:04:57That is gorgeous!
0:04:57 > 0:04:59All in all, it's a stonking property.
0:05:01 > 0:05:05And as if the roll-top bath,
0:05:05 > 0:05:09fireplaces and many other original features weren't enough,
0:05:09 > 0:05:12there's also another floor.
0:05:12 > 0:05:17There's a big landing area with two more good size bedrooms off it,
0:05:17 > 0:05:22again, with plenty of the details typical of a Victorian house.
0:05:22 > 0:05:25Then, of course, there's the outside space.
0:05:25 > 0:05:28Not only do you get a house that absolutely oozes potential,
0:05:28 > 0:05:32but at the back, there are also out-buildings that you could use,
0:05:32 > 0:05:36including this apple store, which has even got a cellar - fantastic!
0:05:36 > 0:05:39And to cap it all, the most amazing garden.
0:05:42 > 0:05:45You'd need to get the strimmer out and clear away the brambles,
0:05:45 > 0:05:48but what a great garden.
0:05:48 > 0:05:51And along with the garage and those out-buildings,
0:05:51 > 0:05:53there could also be a massive bonus.
0:05:55 > 0:06:00Well, the potential for this place just goes on and on and on, because here at the end of the garden,
0:06:00 > 0:06:03what you've got there is vehicle access down a private road.
0:06:03 > 0:06:08That is fantastic because it turns this into a potential building plot.
0:06:08 > 0:06:14And I reckon if you could get the planning permission for something on here,
0:06:14 > 0:06:18this alone could be worth the guide price of the property. Wow!
0:06:18 > 0:06:24Yes, that £160,000 guide price seemed to have offered great potential value.
0:06:24 > 0:06:28But this house will need some serious investment to bring it up to date.
0:06:28 > 0:06:31So, is it as good a deal as it appears?
0:06:31 > 0:06:34What does the auctioneer who sold it think?
0:06:34 > 0:06:37I think it's a super property. It's a little gem.
0:06:37 > 0:06:39It's an auctioneer's dream,
0:06:39 > 0:06:42because you don't come across it every weekend by a long way.
0:06:42 > 0:06:44I think it was built in 1893,
0:06:44 > 0:06:50and almost - perhaps except the toilet - nothing has changed.
0:06:50 > 0:06:52But Victorian standards
0:06:52 > 0:06:55aren't quite what most people are looking for today.
0:06:55 > 0:07:00Once sympathetically modernised, what could it sell for?
0:07:00 > 0:07:02Everything about the house is good,
0:07:02 > 0:07:05so, I would say - and I'm going to stick my neck out slightly -
0:07:05 > 0:07:07I think you could take this to a point
0:07:07 > 0:07:10where it could be worth £350,000 on today's market.
0:07:10 > 0:07:12Wow! That's pretty impressive.
0:07:12 > 0:07:14How would it fare on the rental market?
0:07:14 > 0:07:20Your rental income would be something in the order of £750-£800 a calendar month.
0:07:26 > 0:07:31Well, this is a great example of why I love property auctions.
0:07:31 > 0:07:35Once in a while something - well, basically a gem like this comes up.
0:07:35 > 0:07:41Fantastic property, but who bought it, and did they buy it because of the house and its period features,
0:07:41 > 0:07:45or because of the potential of that plot of land for building on?
0:07:45 > 0:07:47Let's go to the auction and find out.
0:07:51 > 0:07:55And lot 65 is our last lot today.
0:07:55 > 0:07:58It's a four-bedroomed, Victorian semi-detached house,
0:07:58 > 0:08:01standing in extremely large gardens.
0:08:01 > 0:08:04There we are, ladies and gentlemen, a lot of opportunity.
0:08:04 > 0:08:06Start me at 150.
0:08:06 > 0:08:12£150,000. I'll start it at 150, and we'll see what happens.
0:08:12 > 0:08:16We've got bidders. 155, 160.
0:08:16 > 0:08:17160.
0:08:17 > 0:08:19165, 170.
0:08:19 > 0:08:2175.
0:08:21 > 0:08:24180 - 180,000.
0:08:24 > 0:08:26185.
0:08:26 > 0:08:27190.
0:08:27 > 0:08:30195.
0:08:30 > 0:08:32200, 205,
0:08:32 > 0:08:36210, 215.
0:08:36 > 0:08:38220.
0:08:38 > 0:08:40225? 225.
0:08:40 > 0:08:41230?
0:08:41 > 0:08:44230.
0:08:44 > 0:08:4631?
0:08:48 > 0:08:4931.
0:08:49 > 0:08:53232? 232,000, the lady's bid.
0:08:53 > 0:08:58At 232,000, once, twice...
0:08:58 > 0:09:02Third time. Sold at 232, that's the way you do it.
0:09:02 > 0:09:03Come in with the last bid.
0:09:07 > 0:09:12So, for £232,000 - over £70,000 above the guide price -
0:09:12 > 0:09:16the new owners of the four-bed semi in Chellaston
0:09:16 > 0:09:19are engaged couple Ronnie and Josephine.
0:09:19 > 0:09:23They bought this house to be their first home together,
0:09:23 > 0:09:26but before I ask them about their plans for the place,
0:09:26 > 0:09:29I want to ask about something I spotted at the auction.
0:09:29 > 0:09:33Congratulations. But listen, what happened there?!
0:09:33 > 0:09:36Oh! Someone was really determined to buy the house.
0:09:36 > 0:09:39- Yes, your partner! - Someone was a bit more cautious.
0:09:39 > 0:09:41Me.
0:09:41 > 0:09:43So, yeah...
0:09:43 > 0:09:47Were you actually pulling Josephine's hand down, then?
0:09:47 > 0:09:49Yeah, cos we agreed we'd go to 220.
0:09:49 > 0:09:50Uh-huh.
0:09:50 > 0:09:53And somehow, that agreement went out of the window.
0:09:53 > 0:09:55Someone's hand went up.
0:09:55 > 0:09:58Talk me through things from your side, Josephine.
0:09:58 > 0:09:59I was a desperate woman.
0:10:01 > 0:10:03Um, I was just in love with this property,
0:10:03 > 0:10:07and I wanted to go for it, so I did.
0:10:07 > 0:10:10Josephine was really keen to get this property
0:10:10 > 0:10:15as they'd failed to complete on three others in the last six months.
0:10:15 > 0:10:17On one of those, they'd even done a survey
0:10:17 > 0:10:20and were just about to exchange contracts
0:10:20 > 0:10:22when the sellers pulled out.
0:10:22 > 0:10:26So, she was determined not to lose this one for just a few thousand pounds,
0:10:26 > 0:10:29but the purchase of this house wasn't problem-free, either.
0:10:29 > 0:10:32The biggest shock was after the bank did the valuation,
0:10:32 > 0:10:34the valuer actually ticked the wrong box.
0:10:34 > 0:10:37He ticked this property as not mortgageable,
0:10:37 > 0:10:40so we rang up the mortgage centre who said,
0:10:40 > 0:10:42"Sorry, we're not giving you a mortgage,"
0:10:42 > 0:10:44so we cried for a day and a half,
0:10:44 > 0:10:46then rang up the guy who did the valuation,
0:10:46 > 0:10:47and said, "What's going on?"
0:10:47 > 0:10:51- And he said, "Sorry, I ticked the wrong box."- Oh, right!
0:10:51 > 0:10:52It's been a horrible experience.
0:10:55 > 0:10:57Must have been a relief when it went through,
0:10:57 > 0:11:01because they'd also paid £1,200 for both a valuation
0:11:01 > 0:11:06and a structural survey, so they've certainly given this house a thorough examination.
0:11:06 > 0:11:10Tell me about you two then. What do you do?
0:11:10 > 0:11:14- I'm a doctor, a trainee GP.- Great. - I'm in my first year of training as a GP,
0:11:14 > 0:11:19so I'm working as an obs and gynae doctor at the moment at Royal Derby Hospital.
0:11:19 > 0:11:21OK, so quite locally.
0:11:21 > 0:11:24- And you? - I work for a music promoter,
0:11:24 > 0:11:30- as a production manager, so I go on tour with different bands. - Any bands that I'd have heard of?
0:11:30 > 0:11:33- I'm on tour with the Specials at the moment.- Wow!
0:11:33 > 0:11:37Robbie Williams, Basement Jaxx, Kings Of Leon, so yeah...
0:11:37 > 0:11:40I have heard of some of those! Robbie who?
0:11:40 > 0:11:43- Wow, fantastic! - Bob, as I like to call him(!)
0:11:43 > 0:11:44Your mate Bob.
0:11:44 > 0:11:46Joking, not really.
0:11:46 > 0:11:52Ronnie's job means he can be away a lot, but he also has periods when he has long breaks,
0:11:52 > 0:11:55so it's during those times when he hopes to do work on the house.
0:11:55 > 0:11:59OK, well talk me through what you're going to do to it.
0:11:59 > 0:12:02I'd quite like to knock this out into one big kitchen/diner.
0:12:02 > 0:12:08Possibly join some of the buildings up to give us a utility room out the back there.
0:12:08 > 0:12:13And then possibly, in a second phase, doing a side extension on this side.
0:12:13 > 0:12:17You want to extend it?! It isn't big enough already?!
0:12:17 > 0:12:19- There's only two of you!- I know!
0:12:19 > 0:12:22We've got big families, huge families.
0:12:22 > 0:12:26Let's talk about outside, because the garden is unbelievable.
0:12:26 > 0:12:29- Yeah, amazing. - I mean, this bit's lovely,
0:12:29 > 0:12:34- but you go behind the wall back there and it stretches to Stoke-on-Trent.- It is amazing, yeah.
0:12:34 > 0:12:38- What are you going to do with it? - I want to put an office out there.
0:12:38 > 0:12:42There are some really dilapidated out-buildings there
0:12:42 > 0:12:45which we can tear down and put something else in their place.
0:12:45 > 0:12:49And what the idea... Have you looked into the plot at the end,
0:12:49 > 0:12:52maybe selling it off as a building plot or something like that?
0:12:52 > 0:12:58Um, we have thought about it, but we thought about maybe keeping it and building on it ourselves.
0:12:58 > 0:13:00We'd only do that when we were moving.
0:13:00 > 0:13:04I want to enjoy the garden. I'm not in a hurry to make money on that bit of land.
0:13:04 > 0:13:06Let's talk about the budget, then.
0:13:06 > 0:13:10THEY LAUGH
0:13:10 > 0:13:12What budget?
0:13:12 > 0:13:16Yeah, no, I think the first phase, we're looking at about £40,000.
0:13:16 > 0:13:20So... And then if we do go for an extension later on,
0:13:20 > 0:13:22that'll obviously cost a little bit more.
0:13:22 > 0:13:28Fantastic. Congratulations. It's brilliant this house found you, who obviously love it.
0:13:28 > 0:13:31- That's great, well done. - Thank you, Martin. Thank you.
0:13:31 > 0:13:36The couple also have a wedding to organise on top of doing this house,
0:13:36 > 0:13:39so it's certainly going to be a busy and expensive time,
0:13:39 > 0:13:42but I don't think they'd have it any other way.
0:13:42 > 0:13:45# No regrets... #
0:13:48 > 0:13:50So, a bit of a shock for Ronnie to end up buying this place,
0:13:50 > 0:13:54but I think he's come round to Josephine's way of thinking.
0:13:54 > 0:13:55And it is a fantastic house.
0:13:55 > 0:13:59The only thing to be aware of is that something like this
0:13:59 > 0:14:01could turn into a money pit,
0:14:01 > 0:14:04so you need to keep a tight rein on the budget.
0:14:04 > 0:14:09Find out how they get on restoring this beautiful house later in the show.
0:14:13 > 0:14:17Today, I'm in Isleworth in West London.
0:14:17 > 0:14:20The property I'm here to see is not far from Twickenham rugby ground,
0:14:20 > 0:14:23and just a short drive from Heathrow airport.
0:14:23 > 0:14:27So will it be a high flier, or a tough one to tackle?
0:14:29 > 0:14:35The property I'm here to see sold for £169,000 in 2008.
0:14:35 > 0:14:39Just two years on, and the guide for this three-bedroom end of terrace
0:14:39 > 0:14:42was £200,000.
0:14:42 > 0:14:44Let's see what you get for your money inside.
0:14:48 > 0:14:51From the outside, this house looks to be in fairly good nick,
0:14:51 > 0:14:55but will probably need new windows and the roof should be checked out.
0:14:55 > 0:14:59But it is, without doubt, a lovely, 1930s end of terrace.
0:15:02 > 0:15:06Do you know what, it really makes my job so much harder
0:15:06 > 0:15:08when houses don't smell of fresh roses.
0:15:08 > 0:15:12Because walking into here today, it just smells of smoke.
0:15:12 > 0:15:17Years and years of smoke. You can even see the nicotine and how it looks on the walls.
0:15:17 > 0:15:21The whole place is actually a whole haze of yellowy golden colour.
0:15:21 > 0:15:25# Golden brown, texture like sun
0:15:25 > 0:15:29# Lays me down With my mind she runs... #
0:15:29 > 0:15:33So, as you can see, it needs some renovation. It needs decorating,
0:15:33 > 0:15:37but it's a lovely '30s house with some really nice character features.
0:15:37 > 0:15:39Lovely little doors and posts.
0:15:39 > 0:15:44Good size rooms, we've got a great second reception room here.
0:15:44 > 0:15:50Now, I'm just thinking, it might be worth knocking through that small kitchen and opening this space up
0:15:50 > 0:15:55to have a really nice kitchen/diner at the back of the house, away from that busy road.
0:15:55 > 0:16:01And you've got a lovely '30s back door here, which would be really nice opened out onto that garden.
0:16:04 > 0:16:10The general state of the decor and pervading odour means that everything will need to be replaced,
0:16:10 > 0:16:13so I'd recommend a paint job, new flooring and wiring,
0:16:13 > 0:16:18as well as stripping back that banister and doors to the original wood.
0:16:18 > 0:16:26The front room is a good size, with a beautiful bay window, but the kitchen is a museum piece,
0:16:26 > 0:16:29and would definitely need a total overhaul.
0:16:29 > 0:16:32So far, if you look beyond the yellow haze,
0:16:32 > 0:16:35there's definitely tremendous potential.
0:16:35 > 0:16:37So upstairs, more of the same, really.
0:16:37 > 0:16:41You've got a bit of a selection of groovy bedroom colours.
0:16:41 > 0:16:43A nice blue one here, a pink bedroom there.
0:16:43 > 0:16:48Two doubles and a very small single, and you've got a separate toilet and bathroom.
0:16:48 > 0:16:52Now, some people like to keep their loo separate from their bathroom.
0:16:52 > 0:16:58In this case, I actually think it would be worthwhile knocking this wall down,
0:16:58 > 0:17:00and joining this up and having one huge room,
0:17:00 > 0:17:03because you would gain this amount of space,
0:17:03 > 0:17:05and you could shift the bathroom around.
0:17:05 > 0:17:08I think that would make for a really good size family bathroom.
0:17:10 > 0:17:13As with downstairs, this will need to be redecorated,
0:17:13 > 0:17:19but it's all still here - original picture rails, doors, fireplaces and all.
0:17:19 > 0:17:23I'm getting the feeling that under that sticky yellow tar
0:17:23 > 0:17:25is a wonderful period home.
0:17:25 > 0:17:27The single bedroom is really too small,
0:17:27 > 0:17:30but could be great as a study or nursery.
0:17:30 > 0:17:33Inside, things seem pretty promising,
0:17:33 > 0:17:37and I've noticed some potential outside, too.
0:17:37 > 0:17:40Looking at next door has given me an idea.
0:17:40 > 0:17:46Creating some off-road parking could add as much as 5-10% to the end value of your property.
0:17:46 > 0:17:48But how do you go about doing it?
0:17:48 > 0:17:51Well, first you'll need to apply to the council for approval.
0:17:51 > 0:17:57They'll send an application form which will require you to pay around £50 administration fee.
0:17:57 > 0:18:03All councils vary, but in about six to eight weeks, they'll come and visit and carry out a survey.
0:18:03 > 0:18:08If access if approved, it could take another month or so for a contractor to come and give you a price.
0:18:08 > 0:18:12It can cost anything from £800 to £1,200,
0:18:12 > 0:18:16so it's not cheap, but I think well worth it.
0:18:16 > 0:18:23Adding value is key to any development, and would make the house much more saleable.
0:18:23 > 0:18:29Whoever buys this place will have to do all they can to make it as attractive as possible,
0:18:29 > 0:18:32because it's hiding a rather stinky secret!
0:18:34 > 0:18:38In the auction catalogue, it really talks this place up -
0:18:38 > 0:18:43"The leisure areas of Old Deer Park, Kew Gardens and walkways along the river Thames..."
0:18:43 > 0:18:47It says nothing of Mogden treatment sewage works -
0:18:47 > 0:18:49one of the largest of its kind in the UK -
0:18:49 > 0:18:53and it literally backs onto this property. It's just there.
0:18:53 > 0:18:59If you didn't realise how important it is to view properties before the auction, you do now.
0:18:59 > 0:19:05# The answer, my friend, is blowing in the wind
0:19:05 > 0:19:08# The answer is blowing in the wind. #
0:19:10 > 0:19:14This could really put some people off, and would cap the value of the property.
0:19:14 > 0:19:18Now I see why the guide price was so comparatively low.
0:19:18 > 0:19:22What does a local estate agent make of it all?
0:19:25 > 0:19:27The sewage works is quite controversial.
0:19:27 > 0:19:31It's not too bad. It's certainly got better.
0:19:31 > 0:19:35You get a slight...aroma during the summer months,
0:19:35 > 0:19:39but apart from that, they're working hard to eradicate the smells,
0:19:39 > 0:19:42so hopefully, it won't have a detrimental effect on the value.
0:19:42 > 0:19:46How much could the place fetch if rented out?
0:19:46 > 0:19:48Refurbished to a really high standard,
0:19:48 > 0:19:51you could get £1,200 per calendar month.
0:19:51 > 0:19:54Bearing in mind that guide price of £200,000,
0:19:54 > 0:19:57what could it sell for after a renovation?
0:19:57 > 0:20:00Refurbished to a very, very high standard,
0:20:00 > 0:20:04you'd get in the region of £270,000 - £275,000.
0:20:04 > 0:20:08Backing onto the sewage works is far from ideal,
0:20:08 > 0:20:11and I think it will keep the end value of this property down,
0:20:11 > 0:20:13but it didn't put somebody off,
0:20:13 > 0:20:17and let's find out who that somebody was as we go to the auction.
0:20:20 > 0:20:23Three-bed, end of terrace house, nice-looking property...
0:20:23 > 0:20:26185?
0:20:26 > 0:20:29185 on my left.
0:20:29 > 0:20:31190, 195.
0:20:31 > 0:20:34200, right at the back.
0:20:34 > 0:20:37205? 205.
0:20:37 > 0:20:39210, 215, madam?
0:20:39 > 0:20:42220. 225, yeah?
0:20:42 > 0:20:44226.
0:20:44 > 0:20:46227, 228.
0:20:46 > 0:20:50228 down here. 229. 230?
0:20:50 > 0:20:53Yeah?
0:20:53 > 0:20:56231. 232?
0:20:56 > 0:21:01No? 231. 232?
0:21:01 > 0:21:03With you at 231.
0:21:03 > 0:21:09232 elsewhere? If not, 231... first time, second time.
0:21:09 > 0:21:14Third and last time. If you're all done, sold, 231. Well done.
0:21:16 > 0:21:21For 231,000, the successful bidder is property developer, Jean-Michel.
0:21:24 > 0:21:28He bid on the house without viewing it beforehand.
0:21:28 > 0:21:30I met up with him to find out more.
0:21:30 > 0:21:33Jean-Michel, congratulations.
0:21:33 > 0:21:37- Thank you.- Why did you want to buy this at auction?- We didn't, actually!
0:21:37 > 0:21:41We were going for two other properties and we lost out on them,
0:21:41 > 0:21:44and we saw this one was coming up, so we decided to bid.
0:21:44 > 0:21:49It's a 1930s house, so there's not a lot, really, that can go wrong.
0:21:49 > 0:21:53And what about the area, the location, the main road?
0:21:53 > 0:21:55You didn't know all this.
0:21:55 > 0:21:59Yeah, obviously that, and there's no off-street parking was a big issue.
0:21:59 > 0:22:03But things like that we can work around. We're going to apply to get off-street parking.
0:22:03 > 0:22:07And the fact that you've got the sewage works literally just over there,
0:22:07 > 0:22:11do you think that's going to damage the value of this property?
0:22:11 > 0:22:14I don't think so. I think they do sell, these houses.
0:22:14 > 0:22:18When I spoke to the estate agent, he said they do sell them quite often
0:22:18 > 0:22:21and it all depends on the state and condition they're in.
0:22:21 > 0:22:24This is going to be a brand-new house when it's done.
0:22:24 > 0:22:28People that live round here or want to live round here know about the sewage works.
0:22:28 > 0:22:31So, hopefully, everything's OK!
0:22:31 > 0:22:35I hope so. Jean-Michel has taken a bit of a risk,
0:22:35 > 0:22:38as he may have trouble selling the house.
0:22:38 > 0:22:43He paid only 40-odd thousand under the potential resale value of 270,000,
0:22:43 > 0:22:46but he still has to shell out for renovations.
0:22:46 > 0:22:50This won't leave much in the way of profit.
0:22:51 > 0:22:55Maybe the price was slightly too high, but it's a nice house.
0:22:55 > 0:22:56We can still turn a profit.
0:22:56 > 0:23:00But you've got to make this really spectacular.
0:23:00 > 0:23:01You need to get top whack here
0:23:01 > 0:23:04to get any kind of money out of it for yourself.
0:23:04 > 0:23:08It all depends on the ceiling price on the road and what the estate agents advise us.
0:23:08 > 0:23:12So what are you going to do to this house to really make it worth the money?
0:23:12 > 0:23:15Well the basics is obviously rewire, replumb,
0:23:15 > 0:23:19new kitchen, bathroom, carpets, double glazing, driveway at the front,
0:23:19 > 0:23:21sort out the garden...
0:23:21 > 0:23:23So what's your budget for the work?
0:23:25 > 0:23:29Probably between 15,000 and 20,000.
0:23:29 > 0:23:32You've got an awful lot to do for 15 to 20 grand.
0:23:32 > 0:23:36- What sort of business are you in? - I have a building firm.- Right, OK.
0:23:36 > 0:23:38- All the labourers... - So that explains...
0:23:38 > 0:23:40So you can get most things at cost?
0:23:40 > 0:23:45- A lot of things at cost. - And this is an exercise, something you've done many times?
0:23:45 > 0:23:48I've done this about 10-15 times for other people.
0:23:48 > 0:23:50I've done it twice for myself.
0:23:50 > 0:23:56Well, his experience and contacts will certainly keep costs down to a minimum.
0:23:56 > 0:23:59How long does he think it will take?
0:23:59 > 0:24:02We predict, possibly... six to eight weeks.
0:24:02 > 0:24:05Depending on the driveway, cos of the council.
0:24:05 > 0:24:08What would you realistically like to market this for?
0:24:08 > 0:24:11- Possibly 275.- OK, 275.
0:24:11 > 0:24:18275, so we'll make, possibly, about 10 grand profit for six to eight weeks worth of work.
0:24:20 > 0:24:25Jean-Michel didn't know the area, he didn't carry out any research.
0:24:25 > 0:24:28He bought this on a whim. He made a reckless purchase.
0:24:28 > 0:24:31And if he's not careful, it could cost him dearly.
0:24:31 > 0:24:36Luckily for him, he can get this job done and completed at cost price.
0:24:36 > 0:24:38But will he make any money on this?
0:24:38 > 0:24:42You can find out if he does later on in the programme.
0:24:43 > 0:24:45Coming up, I'm off to Hastings in Sussex
0:24:45 > 0:24:48to figure out the best approach for this property.
0:24:48 > 0:24:51It's all going to come down to the numbers,
0:24:51 > 0:24:53and I need to give that some thought.
0:24:53 > 0:25:00Back in Isleworth, west London, we find out if Jean-Michel's three-bed semi has been brought up to date.
0:25:00 > 0:25:03It hadn't been touched, I believe, since the 1930s.
0:25:05 > 0:25:08But first, how was that tricky renovation in Derbyshire?
0:25:08 > 0:25:13Do the best for the house, really, and not spoil the features that it's got.
0:25:17 > 0:25:23From time to time, I discover houses that have remained relatively untouched over the years.
0:25:23 > 0:25:27Little gems that still have many of their original features.
0:25:27 > 0:25:32One such property was the four-bed semi I saw in Chellaston, near Derby.
0:25:32 > 0:25:38Although clearly in need of modernisation, this place didn't just have bags of period features,
0:25:38 > 0:25:45it also sat on a good size plot that had potential to be sold at a later date as a development site.
0:25:45 > 0:25:47So, all in all, this looked like a great lot,
0:25:47 > 0:25:52and it attracted the attention of engaged couple, Ronnie and Josephine.
0:25:52 > 0:25:57Ronnie's a music production manager, while Josephine's training to be a GP.
0:25:57 > 0:26:01For her, this had become a must-have property.
0:26:01 > 0:26:05Were you actually pulling Josephine's hand down, then?
0:26:05 > 0:26:07Yeah, cos we'd agreed we'd go to 220!
0:26:07 > 0:26:09Uh-huh.
0:26:09 > 0:26:14And somehow, that agreement went out of the window! Someone's hand went up.
0:26:14 > 0:26:17Talk me through things from your side, Josephine.
0:26:17 > 0:26:18I was a desperate woman.
0:26:20 > 0:26:23I was just in love with this property.
0:26:23 > 0:26:26And I wanted to go for it, so I did.
0:26:26 > 0:26:30Sold at 232. That's the way you do it.
0:26:30 > 0:26:35So, having paid £232,000 - £12,000 over their agreed limit -
0:26:35 > 0:26:38at last, they got what would be their first home together.
0:26:38 > 0:26:40Armed with a £40,000 budget,
0:26:40 > 0:26:44they set about bringing the house up to date.
0:26:44 > 0:26:46Now, nine months later, we're back.
0:26:50 > 0:26:55From the outside, there aren't any noticeable changes, but step inside...
0:26:57 > 0:27:00Well, the mixture of old and new
0:27:00 > 0:27:05has been blended into a lovely, comfortable living room.
0:27:09 > 0:27:13And by merging the old kitchen/dining room into one,
0:27:13 > 0:27:17they now have a fabulous new kitchen space.
0:27:20 > 0:27:27The kitchen looks quite different. We've had the range cooker removed and fitted a new range cooker.
0:27:27 > 0:27:32The dividing wall has been taken down and a steel beam has been put up.
0:27:32 > 0:27:36We've had some patio doors put in so we can have a view of the garden and the pond,
0:27:36 > 0:27:42and we've got some kitchen units that we got from an auction site and had the windows painted.
0:27:42 > 0:27:45Underfloor heating with some slate tiles as well.
0:27:45 > 0:27:49This is my favourite room, it's really nice and relaxing when friends come round.
0:27:49 > 0:27:53There's also a utility area that's a work in progress.
0:27:53 > 0:27:57On the first floor, the bedrooms have been finished.
0:28:00 > 0:28:03But despite some changes to the layout,
0:28:03 > 0:28:06the only bathroom in the house is still reached
0:28:06 > 0:28:09by passing through the second bedroom, as Ronnie explains.
0:28:11 > 0:28:15Um, we've put in a new window so we can get the view from the garden.
0:28:15 > 0:28:19We've put in this dividing wall - this used to be one big room.
0:28:19 > 0:28:23We've taken out the big cast iron bath which we've had re-covered,
0:28:23 > 0:28:27ready to go into the main bathroom in the extension once that's done.
0:28:27 > 0:28:30We've put in a new shower, new toilet,
0:28:30 > 0:28:33we've obviously tiled out everything.
0:28:33 > 0:28:38Fitted a new sink, we've got underfloor heating in here now as well.
0:28:38 > 0:28:43The long-term plan is to build an extension which will have a bathroom in it.
0:28:43 > 0:28:47That will become the en-suite for the second bedroom.
0:28:47 > 0:28:51On the top floor, the rooms are gradually being finished.
0:28:51 > 0:28:55For Ronnie and Josephine, this has been a labour of love,
0:28:55 > 0:28:57and not something to be rushed.
0:28:57 > 0:29:00It has been quite hard, because we've wanted to...
0:29:00 > 0:29:05do the best for the house, really, and not spoil the features that it's got and the feel that it's got.
0:29:05 > 0:29:09And so it's just got a nice flow through it.
0:29:09 > 0:29:12We're getting married in four weeks' time,
0:29:12 > 0:29:16so it'll be somewhere nice to have kids as well.
0:29:16 > 0:29:21- I've had that in mind, he just wants his boy's toys...- Yeah, totally!
0:29:21 > 0:29:23Josephine is clearly the planner here.
0:29:23 > 0:29:27For them, this has always been a two-part process,
0:29:27 > 0:29:30with the first stage being to refurbish the house and garden,
0:29:30 > 0:29:34then move in and look at stage two, which is to extend.
0:29:34 > 0:29:37We're hoping to extend the house out this way..
0:29:37 > 0:29:42So downstairs, we'll have a longer hallway with a dining room here
0:29:42 > 0:29:46and a larger front room on the right-hand side.
0:29:46 > 0:29:50And upstairs, we'll have another bedroom and a family bathroom
0:29:50 > 0:29:53and a balcony opposite this bedroom with the en-suite.
0:29:53 > 0:29:57And on the top floor, another bedroom with a shower room.
0:29:57 > 0:30:00We've had outline planning permission approved.
0:30:00 > 0:30:02We're just going through detailed plans now.
0:30:02 > 0:30:06We're hoping to have it all completed within two years.
0:30:06 > 0:30:10When that's all complete, they'll have a huge, six-bedroom house
0:30:10 > 0:30:12with two en-suites and a large family bathroom.
0:30:12 > 0:30:16But of course, they'll also have significantly higher costs.
0:30:16 > 0:30:20Building works, we've probably spent about 25,000 - 30,000.
0:30:20 > 0:30:24The extension we've had priced up for about 60,000
0:30:24 > 0:30:31and then there's also... We're going to probably put an orangery between the out-house and the scullery.
0:30:31 > 0:30:35So I think, realistically, it's going to go to about 70,000.
0:30:35 > 0:30:40They paid £232,000 at auction and have spent another 30,000 on it.
0:30:40 > 0:30:45So, along with costs and fees, their total outlay is around 270 grand.
0:30:45 > 0:30:47So, is it money well spent?
0:30:47 > 0:30:50Let's hear from two local property experts.
0:30:50 > 0:30:53The house is tremendous - it's a fantastic period property
0:30:53 > 0:30:57that's got the right position, the right size, the right location
0:30:57 > 0:30:59and still the right features.
0:31:03 > 0:31:07Although they've brought it up to a modern standard -
0:31:07 > 0:31:08or at least it's getting there -
0:31:08 > 0:31:12they've retained the character of the house, and that's key.
0:31:12 > 0:31:15So, a positive response.
0:31:15 > 0:31:17But will that equate to decent returns?
0:31:17 > 0:31:23Ronnie and Josephine have invested around 270,000 in their home.
0:31:23 > 0:31:26It's likely to sell at the moment for around about £250,000.
0:31:26 > 0:31:28With the present footprint of the house,
0:31:28 > 0:31:33I would say you could probably go up to about £275,000.
0:31:33 > 0:31:37So, perhaps not the best resale values, but this IS only stage one.
0:31:37 > 0:31:42The plan for stage two - an extension - will add another £70,000,
0:31:42 > 0:31:46taking their total spend to around £340,000.
0:31:46 > 0:31:50Extended, we're probably looking towards the £300,000 mark.
0:31:50 > 0:31:53I would say probably up to about £315,000.
0:31:53 > 0:31:56Hmm, that is a potential loss.
0:31:56 > 0:32:00But what do they think of those valuations?
0:32:01 > 0:32:03A bit disappointing.
0:32:03 > 0:32:09We were hoping more, sort of 350-ish by the time we've spent what we're going to spend on it.
0:32:09 > 0:32:13On the face of it, this might not be a money-spinner, but remember,
0:32:13 > 0:32:16they have that potential building plot in the garden.
0:32:16 > 0:32:18Should they ever wish to sell it,
0:32:18 > 0:32:22that would more than cover any shortfall on their investment.
0:32:22 > 0:32:24In the end, I'm sure they'll do pretty well.
0:32:24 > 0:32:26Are they glad they took on this project?
0:32:26 > 0:32:29It definitely feels worth it. I love living here.
0:32:29 > 0:32:31It's so private and pretty,
0:32:31 > 0:32:36really close to town, but it feels like you're out in the country.
0:32:36 > 0:32:39And it'll be a great place to have kids, and have family round.
0:32:39 > 0:32:42So no, don't regret it. It's not all about the money.
0:32:42 > 0:32:44So, their enthusiasm remains undimmed.
0:32:44 > 0:32:48Although with a wedding on the horizon and a new home,
0:32:48 > 0:32:50this has been a busy period.
0:32:50 > 0:32:53But soon, hopefully, they'll have a chance to relax and enjoy
0:32:53 > 0:32:56what is becoming a really beautiful house once again.
0:33:04 > 0:33:09Well, think of Hastings, and you think of the famous battle in 1066.
0:33:09 > 0:33:12But the town has much more history besides.
0:33:12 > 0:33:14Some of it dates back to the 1400s.
0:33:14 > 0:33:18There's the old pier, the cliff railway,
0:33:18 > 0:33:21and if you get bored of the past, you can return to the present
0:33:21 > 0:33:23and enjoy the views from the beach.
0:33:26 > 0:33:29In fact, John Logie Baird, the inventor of television,
0:33:29 > 0:33:31lived in Hastings for a time,
0:33:31 > 0:33:34so we all have a lot to thank the town for.
0:33:34 > 0:33:38Let's hope today's auction lot proves to be as exciting a discovery.
0:33:38 > 0:33:42The property I'm here to see had a guide price of £75,000.
0:33:42 > 0:33:46What does that buy you? Three storeys, three bedrooms.
0:33:46 > 0:33:49You know what? Looks pretty impressive.
0:33:51 > 0:33:53Whoa, just a little bit of junk mail(!)
0:33:53 > 0:33:58What have we got? I like the fact that there's a little bit of a porch there to keep the draught out.
0:33:58 > 0:34:02Entrance hall, pretty standard, but what is going on there?
0:34:02 > 0:34:06Actually, that's not too serious, just a bit of polystyrene cornicing
0:34:06 > 0:34:09and the paper from the ceiling coming off.
0:34:09 > 0:34:12All in all, looking promising.
0:34:12 > 0:34:16So, through to a nice, big dining/living room area that's been knocked through,
0:34:16 > 0:34:18but what is this all about?!
0:34:18 > 0:34:24Very Arabian Nights, and I don't think it quite fits in with the whole Hastings theme,
0:34:24 > 0:34:28but it's a good size room. I'd like to see a nice fireplace in there.
0:34:28 > 0:34:32Certainly get rid of the bricks, but apart from that,
0:34:32 > 0:34:33I'm liking this place.
0:34:37 > 0:34:40Unfortunately, there's a little less to like in the kitchen.
0:34:40 > 0:34:43It's a tired space and needs a complete overhaul.
0:34:43 > 0:34:47At the back, there's a garden that would be fine for a family,
0:34:47 > 0:34:50which is just as well, because the size of the rooms
0:34:50 > 0:34:54in the rest of the house means this isn't for a single person.
0:34:54 > 0:34:56Just look at that bathroom -
0:34:56 > 0:34:59it's huge, and such a crazy waste of space.
0:35:01 > 0:35:05It makes a nice change to be trying to figure out what to do with too much space,
0:35:05 > 0:35:07rather than trying to create it.
0:35:07 > 0:35:13What I would do is create an en-suite to the master bedroom here.
0:35:13 > 0:35:16You could still end up with a lovely, family size bathroom
0:35:16 > 0:35:20and enhance this, which is a fantastic room anyway.
0:35:20 > 0:35:23At the front of the house - big bay window there.
0:35:23 > 0:35:25The only thing slightly wrong with it -
0:35:25 > 0:35:29in this corner here, we have got some major signs of damp.
0:35:29 > 0:35:33My guess is, coming down through the ceiling, maybe something to do with the roof -
0:35:33 > 0:35:38a roof tile missing or something in the past. Definitely get that checked out.
0:35:38 > 0:35:42You're not sure what damage has been done to the floorboards and joists.
0:35:42 > 0:35:46A bit of investigation here, but apart from that, it's a lovely room.
0:35:46 > 0:35:49It is a great space, if a bit decaying.
0:35:49 > 0:35:53But the potential of this room combined with the bathroom is fantastic.
0:35:53 > 0:35:56But now it's up the third and final flight of stairs
0:35:56 > 0:35:59to see what the top floor has to offer.
0:35:59 > 0:36:03More slightly worrying signs of water ingress there.
0:36:03 > 0:36:06But up here on the top floor, two more bedrooms.
0:36:06 > 0:36:11The house just goes on. What would you do with this place, then? How about converting it into flats?
0:36:11 > 0:36:13Maybe a ground floor one-bedroom flat,
0:36:13 > 0:36:16and the first two floors, a two-bedroom maisonette?
0:36:16 > 0:36:18The good news is, a precedent has been set.
0:36:18 > 0:36:22Nearly half the houses on this street have had that done.
0:36:22 > 0:36:24So, it's all going to come down to the numbers.
0:36:24 > 0:36:26I need to give that some thought.
0:36:26 > 0:36:30When you consider the house had a guide price of £75,000,
0:36:30 > 0:36:33it could be a real investment opportunity.
0:36:36 > 0:36:40How about some fresh, sea air, just to clear the head?
0:36:42 > 0:36:46Mmm, down on the beach with an ice cream, the perfect place to contemplate.
0:36:46 > 0:36:49I've been thinking. A property like this -
0:36:49 > 0:36:51done up to a really high standard -
0:36:51 > 0:36:55at the moment is going to get a maximum of £150,000 to £160,000.
0:36:55 > 0:37:01Convert it into two flats, you'll be able to sell those for, what, £80,000 to £85,000 each?
0:37:01 > 0:37:06So in this instance, there isn't actually that much financial gain from converting to flats.
0:37:06 > 0:37:11It may be better from a rental point of view, but purely looking at the resale value, I wouldn't do it.
0:37:11 > 0:37:15The amount of extra time, effort and money it's going to cost to convert...
0:37:15 > 0:37:18For once, learn to love it as it is and keep it as a single house.
0:37:18 > 0:37:21Mmm! That's the way to cream off the profits.
0:37:24 > 0:37:28It's amazing what a tasty ice cream can do for mental arithmetic,
0:37:28 > 0:37:33but seriously, just because you've got a lovely, spacious house, doesn't mean the sky's the limit.
0:37:33 > 0:37:37Know your market, and in this case, it's not crying out for flats.
0:37:39 > 0:37:43So, bearing in mind that guide price of £75,000,
0:37:43 > 0:37:46I asked a local estate agent what she thought of this place,
0:37:46 > 0:37:48and whether she loved it as much as I do.
0:37:49 > 0:37:51Walking into this house,
0:37:51 > 0:37:55my first impression is, "It needs work doing to it."
0:37:55 > 0:38:00From what I can see, I don't think there's structural work to be done. Most of it is cosmetic.
0:38:00 > 0:38:03Obviously, redecoration throughout, new floor covering,
0:38:03 > 0:38:05possibly look at the windows.
0:38:05 > 0:38:09Kitchen, bathroom - all of those things need doing.
0:38:09 > 0:38:15It does need a considerable refurbishment, but is Hastings itself appealing to investors?
0:38:15 > 0:38:18There's been quite a lot of money invested in the town.
0:38:18 > 0:38:23It has changed quite a bit. We've got a new university centre, we've had a new college built.
0:38:23 > 0:38:25The seafront has changed quite radically,
0:38:25 > 0:38:29so it's a town where things are happening because it's been neglected for so long.
0:38:29 > 0:38:33It will never be a Brighton, but it's getting there slowly.
0:38:33 > 0:38:37So, it's on the up, but how much could this house sell for?
0:38:39 > 0:38:45If it was all done up, nothing to do, I'd imagine you could market it in the region of £160,000.
0:38:45 > 0:38:48What about rental?
0:38:49 > 0:38:56The rental cost of this, once all done, would be in the region of £750-£800 per calendar month.
0:38:56 > 0:39:01Well, the tide may be turning in Hastings and the property does offer good value for money,
0:39:01 > 0:39:05but it's really important that you don't spend too much,
0:39:05 > 0:39:07cos at the moment, there's still a ceiling
0:39:07 > 0:39:10on what you'll get back for this kind of house.
0:39:10 > 0:39:14Let's see who fancied the opportunity when it went under the hammer.
0:39:17 > 0:39:20Lot 118...
0:39:20 > 0:39:22Who wants to get me started on this? Lot 118.
0:39:22 > 0:39:25£80,000 anybody? 75, OK.
0:39:25 > 0:39:28OK, start there. 75 I've got.
0:39:28 > 0:39:32Anybody else? At £75,000... 76?
0:39:32 > 0:39:3677, 78, 79...
0:39:36 > 0:39:4180,000? 80, 81, 82,
0:39:41 > 0:39:47No? It's with you at the back, sir. At £81,000, back of the room. Anybody else?
0:39:47 > 0:39:5082, new place. 83.
0:39:50 > 0:39:5384, 85, 86.
0:39:53 > 0:39:5687, 88, 89,
0:39:56 > 0:40:0290,000. 91, 92, 93, 94.
0:40:02 > 0:40:0695, 96, 97, 98.
0:40:06 > 0:40:09100? 100,000. 101.
0:40:09 > 0:40:13102, 103, 104,
0:40:13 > 0:40:16105, 106, no?
0:40:16 > 0:40:20OK, it's with you, 105. Anybody else?
0:40:20 > 0:40:24105 for the first, 105 for the second,
0:40:24 > 0:40:27105 for the third and final time. Are we all done? Sold.
0:40:27 > 0:40:29105.
0:40:29 > 0:40:34That keen, determined and ultimately successful bidder was Steve.
0:40:35 > 0:40:41He runs a decorating business and lives in Epsom, Surrey, which isn't that near to Hastings.
0:40:41 > 0:40:42I met him at the blue house
0:40:42 > 0:40:45to find out what had brought him down to the seaside.
0:40:45 > 0:40:47Steve, congratulations!
0:40:47 > 0:40:51- Yeah, a result, I think. - A bit of a result.
0:40:51 > 0:40:55- Why were you so keen to buy it?- Well I just love the period properties.
0:40:55 > 0:40:59Hastings, it's up and coming - regeneration in the area,
0:40:59 > 0:41:04so I thought I'd set myself in before it really starts to kick off.
0:41:04 > 0:41:06OK, so tell me about you.
0:41:06 > 0:41:12I run a high-quality decorating company. I work for some of the top design and architects in the country.
0:41:12 > 0:41:18- Wow!- I've got some good men behind me, and it's just another little step up the ladder, hopefully.
0:41:18 > 0:41:24- And where are you based? - I live in Epsom, but most of my work is in Kensington and Chelsea,
0:41:24 > 0:41:27around that area. Wherever people want me to go, I go.
0:41:27 > 0:41:30Compared to the areas you're used to,
0:41:30 > 0:41:32this is a lot of property for the money, isn't it?
0:41:32 > 0:41:34This is unbelievable.
0:41:34 > 0:41:37I mean, this could command six figures in Kensington and Chelsea, with out a doubt.
0:41:37 > 0:41:40Everywhere has its own market.
0:41:40 > 0:41:43I'll try and break that ceiling with a quality finish,
0:41:43 > 0:41:47and bring that Kensington and Chelsea feel into this area.
0:41:47 > 0:41:52Steve's right. There's plenty of scope here, but with plans to sell it on,
0:41:52 > 0:41:56he'd better be careful that his standard of renovation
0:41:56 > 0:41:59doesn't take the place above this area's ceiling price.
0:41:59 > 0:42:02I'm going to strip it all back to near enough bare.
0:42:02 > 0:42:08It's going to be replastered, new timbers, new woodwork everywhere it's needed. New flooring.
0:42:08 > 0:42:11The bathroom's going to be done - we'll take some of it away
0:42:11 > 0:42:14and make an en-suite with the first floor bedroom.
0:42:14 > 0:42:18The kitchen's going to be a high-spec kitchen. Lights everywhere.
0:42:18 > 0:42:24The garden's going to be landscaped, and it's going to bring it up to a really quality piece of work.
0:42:24 > 0:42:29- So is there a market for this high level of specification in this area? - I'm going to make it that market.
0:42:29 > 0:42:35If I'm going to do something, I'm going to do it how I want it to be myself. I've got pride in my work.
0:42:35 > 0:42:39I can't go in and walk out if it isn't exactly what I wanted.
0:42:39 > 0:42:43- Listen, good luck.- Appreciate it.
0:42:43 > 0:42:45- I look forward to seeing how you get on.- Thank you.
0:42:54 > 0:42:56Steve's playing a risky game,
0:42:56 > 0:42:59and I'm worried that the sort of spec he's aiming for
0:42:59 > 0:43:01might not have a market in Hastings.
0:43:01 > 0:43:05He's got a budget of £25,000 to achieve his planned finish,
0:43:05 > 0:43:08and aims to do it in ten weeks.
0:43:08 > 0:43:10Steve's certainly ready to take on this project,
0:43:10 > 0:43:15but is Hastings ready for the kind of high level of finish that Steve is going to create?
0:43:15 > 0:43:20I'm not so sure, and I'm concerned that he'll spend too much money and not get that money back.
0:43:20 > 0:43:25It could, in fact, be another battle in Hastings - this time, for profit.
0:43:25 > 0:43:27You can find out how he gets on later in the show.
0:43:30 > 0:43:33The moment of reckoning has arrived.
0:43:33 > 0:43:38Have those property gambles paid off, or have our buyers backed the wrong horse?
0:43:38 > 0:43:39Let's find out.
0:43:39 > 0:43:43Back in Isleworth, west London, within walking distance
0:43:43 > 0:43:47of Twickenham rugby ground and close to Heathrow airport,
0:43:47 > 0:43:50a three-bed semi went up for auction.
0:43:51 > 0:43:54It wasn't quite the high flier I'd hoped for,
0:43:54 > 0:44:01but certainly had an air about it with interior walls covered in nicotine stains and grease.
0:44:01 > 0:44:04But on the whole, it was just in need of a good makeover.
0:44:04 > 0:44:07However, it was going to need more than a lick of paint
0:44:07 > 0:44:10to take away what lurked at the bottom of the garden.
0:44:10 > 0:44:12The local sewage works.
0:44:21 > 0:44:25But you know what they say - where there's muck, there's brass,
0:44:25 > 0:44:30so sniffing out a possible good deal, building firm owner Jean-Michel
0:44:30 > 0:44:33bought the property at auction for £231,000.
0:44:33 > 0:44:37He felt confident he could get the place back together again.
0:44:47 > 0:44:50The fact that you've got the sewage works just over there,
0:44:50 > 0:44:54do you think that's going to damage the value of this property?
0:44:54 > 0:44:58I don't think so. I think they do sell, these houses.
0:44:58 > 0:45:00The estate agent said they do sell them quite often,
0:45:00 > 0:45:03and it all depends on the condition they're in,
0:45:03 > 0:45:07so hopefully, everything's OK.
0:45:07 > 0:45:10So, with a 15-grand budget and six to eight weeks timescale,
0:45:10 > 0:45:14Jean-Michel and his team set about peeling back the layers.
0:45:17 > 0:45:20It was awful, wasn't it? It was yellow everywhere.
0:45:20 > 0:45:24Tobacco stains, or grease, or whatever it was.
0:45:24 > 0:45:28It was grim. It hadn't been touched, I believe, since the 1930s,
0:45:28 > 0:45:32so it was the original - everything - kitchen, bathroom.
0:45:32 > 0:45:34Pretty grim.
0:45:34 > 0:45:37Seven weeks later, we're back.
0:45:37 > 0:45:41The years have been stripped away, and the house looks good as new.
0:45:49 > 0:45:56There are new windows, doors, carpets, laminate floors and central heating - all in just seven weeks!
0:45:56 > 0:45:58Wow - that's pretty impressive!
0:45:59 > 0:46:03We've pretty much finished. We've got two weeks left.
0:46:03 > 0:46:10Just snagging - the driveway, the front garden, the back garden - and then we're there.
0:46:10 > 0:46:12And this hasn't just been a makeover.
0:46:12 > 0:46:15Jean-Michel has also altered the layout.
0:46:17 > 0:46:21Basically there was a wall dividing the kitchen and the sitting room.
0:46:21 > 0:46:25We've knocked the kitchen wall down, made it completely open plan.
0:46:25 > 0:46:29Decided on a walnut kitchen as opposed to the high-gloss white.
0:46:29 > 0:46:34Obviously double French doors here that look straight into the garden.
0:46:34 > 0:46:37Now those patio doors will take you out into a good size garden
0:46:37 > 0:46:40that just needs finishing off with some new turf.
0:46:40 > 0:46:44Upstairs has also been given a slight re-jig.
0:46:44 > 0:46:48Well, basically we knocked down the partition wall,
0:46:48 > 0:46:51and created an open, full-size bathroom.
0:46:51 > 0:46:54We fitted a thermostatic shower,
0:46:54 > 0:46:58full-size bath, WC, toilet and sink.
0:46:58 > 0:47:04Along with a fantastic bigger bathroom, three bedrooms have been finished with new windows,
0:47:04 > 0:47:07central heating and a complete refurbishment.
0:47:07 > 0:47:10So, Jean-Michel and his team have been busy,
0:47:10 > 0:47:13but it seems there was one step he couldn't take quite so quickly.
0:47:13 > 0:47:17We've managed to build a house - or rebuild a house -
0:47:17 > 0:47:20in seven weeks, but we can't get a kerb lowered in seven weeks.
0:47:20 > 0:47:23So we just have to wait.
0:47:23 > 0:47:29At present, it may be lacking some kerb appeal, though he hopes this will be sorted out fairly soon,
0:47:29 > 0:47:33and obviously he now wants to get some return on his investment.
0:47:33 > 0:47:36The original budget was about £15,000.
0:47:36 > 0:47:38That was going to include all the windows,
0:47:38 > 0:47:42and knocking down the walls in the kitchen, stuff like that,
0:47:42 > 0:47:44so we've gone a little bit over budget,
0:47:44 > 0:47:48and the driveway was a little bit more expensive than we predicted.
0:47:48 > 0:47:51Erm, so we've gone to about £21,000, I think.
0:47:57 > 0:47:59That 21 grand budget
0:47:59 > 0:48:04on top of the £231,000 purchase price and other costs
0:48:04 > 0:48:07will take his total investment to around £260,000.
0:48:07 > 0:48:10Money well spent. What do two local estate agents think?
0:48:10 > 0:48:16I think the property is good. It's spacious and nice and neutral.
0:48:16 > 0:48:19I think he could finish off around the windows
0:48:19 > 0:48:21and certain snagging bits,
0:48:21 > 0:48:24but all in all, I think it's a good property.
0:48:31 > 0:48:33It's a popular family layout, fairly standard.
0:48:33 > 0:48:35Separate reception room -
0:48:35 > 0:48:38a family room where people can spend time together,
0:48:38 > 0:48:40two bedrooms and a box room upstairs.
0:48:40 > 0:48:44I think there are a few reasons why perhaps he won't achieve as much as he's hoping.
0:48:44 > 0:48:46Erm, the...
0:48:46 > 0:48:48stamp duty is a big one,
0:48:48 > 0:48:52and the increase up to 3% after the 250 level.
0:48:52 > 0:48:55The planes - unfortunately it is on the flight path.
0:48:55 > 0:49:02It does back onto the Mogden sewage works, which may be slightly off-putting for some families.
0:49:02 > 0:49:08Jean-Michel has invested around £260,000 on his three-bed Isleworth semi.
0:49:08 > 0:49:11Could it turn a profit for him if resold?
0:49:11 > 0:49:15I'd probably look to market the house at 275...
0:49:15 > 0:49:20to achieve offers from 250 upwards.
0:49:20 > 0:49:23I would put this on the market at £275,000
0:49:23 > 0:49:25Pretty much what we envisaged.
0:49:25 > 0:49:31When I looked at the property, I really did think about 275.
0:49:31 > 0:49:35That would be a low £15,000 profit.
0:49:35 > 0:49:41But he thinks he's more likely to hang onto it for a couple of years and rent it out.
0:49:41 > 0:49:45We'd be looking at putting it on the market for about £1,000 a month.
0:49:45 > 0:49:49We would market this at £1,200 per calendar month.
0:49:49 > 0:49:52Yeah, that's OK. The average is about £1,100 a month.
0:49:52 > 0:49:56Yeah, that's pretty good. That still gives us a good return.
0:49:56 > 0:50:02Yes, £1,100 a month is over £13,000 a year, or a 5% yield.
0:50:02 > 0:50:04So, would he do it all again?
0:50:04 > 0:50:08I would do it again, once I've saved some more money. Yeah.
0:50:08 > 0:50:14So, cashflow allowing, Jean-Michel will continue his climb up the property developing ladder.
0:50:14 > 0:50:17I think he'll look back on this house as a pretty successful project.
0:50:22 > 0:50:25Back to Hastings, now, where earlier we met Steve,
0:50:25 > 0:50:30who'd bought this three-storey Victorian house for £105,000.
0:50:30 > 0:50:35He runs a decorating firm which renovates properties for clients in Kensington and Chelsea.
0:50:35 > 0:50:42But this time, he was stepping out his own to grasp what he hoped was an investment opportunity.
0:50:42 > 0:50:45Hastings is up and coming - regeneration in the area,
0:50:45 > 0:50:50so I thought I'd set myself in before it all really starts to kick off.
0:50:50 > 0:50:53With his eye on bringing some London style to Hastings,
0:50:53 > 0:50:57Steve and his team were ready to take on this house.
0:50:57 > 0:51:02Three months later, you can see that he's already made his mark on the exterior.
0:51:21 > 0:51:25As you can see, I think the bathroom's stunning.
0:51:25 > 0:51:29We've moved everything everywhere, put everything in here.
0:51:29 > 0:51:32There was a shower before, the bath was here.
0:51:32 > 0:51:35The pedestal was over here, but there was no toilet.
0:51:35 > 0:51:40I'm wondering why that was. All the joists run this way, there was nowhere to get one out.
0:51:40 > 0:51:44I literally raised the floor, moved the shower over to here,
0:51:44 > 0:51:48nice Victorian roll-top bath to go with the house.
0:51:48 > 0:51:52I think the bathroom looks amazing, and I'm over the moon with it.
0:51:52 > 0:51:55It's a fantastic looking bathroom,
0:51:55 > 0:51:58and the rest of the house continues in the same vein.
0:51:58 > 0:52:01Totally renewed, renovated and refurbished,
0:52:01 > 0:52:06and thankfully, no more 1,001 Nights for this little touch of Arabia.
0:52:06 > 0:52:12It had to come down, so got in touch with the council, got everything done legally, proper...
0:52:12 > 0:52:18knocked it down, stuck in an 8x4 RSJ, and this is what we've got now.
0:52:18 > 0:52:21Steve originally aimed for a high end of the market look,
0:52:21 > 0:52:24and has achieved a good, contemporary feel here.
0:52:24 > 0:52:27That still left a tired kitchen at the back,
0:52:27 > 0:52:30but again, Steve doesn't disappoint.
0:52:30 > 0:52:32It was a mess, absolute mess.
0:52:32 > 0:52:36So we ripped the whole lot out, ceiling down,
0:52:36 > 0:52:39everything off the walls, and completely rebuilt it.
0:52:39 > 0:52:44All the outside walls are insulated everywhere.
0:52:44 > 0:52:47New lighting, down-lighting - a little bit modern.
0:52:47 > 0:52:52Stuck in a washing machine, dishwasher, fridge-freezer...
0:52:52 > 0:52:56electric oven extractor fan, gas hob.
0:52:56 > 0:52:57Everything is brand new.
0:52:57 > 0:52:59New tiles on the floor.
0:52:59 > 0:53:01It looks good.
0:53:01 > 0:53:08With the help of his team, Steve has achieved a major overhaul from top to bottom -
0:53:08 > 0:53:12replastering, rewiring and plumbing throughout.
0:53:12 > 0:53:15But despite his aim for a top-of-the-range finish,
0:53:15 > 0:53:18it seems that there has been a bit of a compromise.
0:53:18 > 0:53:23They are a good standard for this type of house. You've got to draw a level.
0:53:23 > 0:53:26You could spend thousands on bathrooms, thousands.
0:53:26 > 0:53:30But for the level of this house and what it's going to be used for,
0:53:30 > 0:53:33we've gone for the best possible materials and fittings
0:53:33 > 0:53:36and you can see how it's come up.
0:53:36 > 0:53:37It's still an impressive job,
0:53:37 > 0:53:41and one that took his team only just over five weeks to achieve.
0:53:41 > 0:53:49But the renovation has stretched his budget from an original £25,000 to £41,000.
0:53:49 > 0:53:52Steve was aiming to make it stand out in the local property market,
0:53:52 > 0:53:55but I didn't think he meant that quite so literally.
0:53:55 > 0:53:59Well, the frontage was a dirty old blue when you saw it last time.
0:53:59 > 0:54:03The roof was like a dirty red, so I thought,
0:54:03 > 0:54:06"What's brighter than yellow?" And it just brightens it up.
0:54:06 > 0:54:08You can see it from down the street.
0:54:08 > 0:54:12And basically, it's a house that you can walk in, it's there, it's fresh.
0:54:12 > 0:54:15People can see it, and it stands out.
0:54:18 > 0:54:21Well, Steve's managed that.
0:54:21 > 0:54:25As he runs a decorating business and this is his first attempt at property developing,
0:54:25 > 0:54:30it's no wonder he paid close attention to the look and quality of this renovation.
0:54:30 > 0:54:32I've been on site, I've managed it myself,
0:54:32 > 0:54:35Anything that's gone wrong, it's been sorted out there and then.
0:54:35 > 0:54:38Touch wood, nothing really did go wrong here.
0:54:38 > 0:54:41Comparing it to contracting, it's totally different.
0:54:41 > 0:54:43At the end of the day, it's my work,
0:54:43 > 0:54:45so it's all down to me to build this up,
0:54:45 > 0:54:48and this is the way, really, that I'm going to go.
0:54:51 > 0:54:54Time to hear if Steve is heading in the right direction.
0:54:54 > 0:54:56With a total spend of £146,000, here,
0:54:56 > 0:55:00we asked two local estate agents what they thought of his hard work.
0:55:02 > 0:55:07Obviously visiting the property again, a vast difference from what I saw last time.
0:55:07 > 0:55:11Much improved. The finish is really good, I have to say, throughout.
0:55:11 > 0:55:14New bathroom, new kitchen, it's lovely.
0:55:14 > 0:55:18Absolutely fantastic property. It's been modernised to a very high standard.
0:55:18 > 0:55:21It will appeal to a wide range of buyers.
0:55:21 > 0:55:22Buyers within the local area,
0:55:22 > 0:55:29but also people looking to relocate from London or Brighton.
0:55:29 > 0:55:32Looking through the property, I'm very impressed with the finish.
0:55:32 > 0:55:35The bathroom and the kitchen are big talking points -
0:55:35 > 0:55:38nice and modern, a lovely shower cubicle in the bathroom.
0:55:38 > 0:55:41The garden's nice and level, much tidier.
0:55:41 > 0:55:44Good size accommodation, very nicely presented.
0:55:44 > 0:55:50So the agents are positive about Steve's efforts, but does it work as an investment?
0:55:50 > 0:55:54With a total spend of £146,000 on the house,
0:55:54 > 0:55:56what could a resale achieve?
0:55:56 > 0:56:01I think you would put this on the market for £169,950.
0:56:01 > 0:56:05We could sell this property for between £160,000 and £165,000.
0:56:05 > 0:56:07That's about right, about right.
0:56:07 > 0:56:10We have sold it for £160,000.
0:56:10 > 0:56:13Selling privately also means no agency fees,
0:56:13 > 0:56:18so Steve's first project has reeled in a £14,000 pre-tax profit.
0:56:18 > 0:56:22But would a rental return have appealed to Steve?
0:56:22 > 0:56:25If the owner was looking to rent this property out,
0:56:25 > 0:56:29I would suggest a figure of about £795 per calendar month.
0:56:29 > 0:56:34We would be able to rent this out for between £725 and £750 per calendar month.
0:56:34 > 0:56:38That's a possible rental yield of 6.5%.
0:56:38 > 0:56:41But Steve's not going to lose out on all of that,
0:56:41 > 0:56:45because he and a newly acquired business partner will now manage the let for the buyer.
0:56:45 > 0:56:49So, things are looking up for him and for this part of Hastings.
0:56:54 > 0:56:57Well, whether you're an old-hand developer or a property novice,
0:56:57 > 0:57:01join us next time for more stories on Homes Under The Hammer.
0:57:01 > 0:57:03- See you then.- Goodbye.- Goodbye.
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd
0:57:23 > 0:57:26E-mail subtitling@bbc.co.uk