0:00:00 > 0:00:04Hello! Ever fancied buying a property at auction, but don't know where to start?
0:00:04 > 0:00:07Well, perhaps we can show you some tricks of the trade.
0:00:07 > 0:00:12Join us as we follow more people buying their homes under the hammer.
0:00:37 > 0:00:43Auction houses aren't intimidating places. Anyone can buy there. All you need is the money.
0:00:43 > 0:00:46Today we talk to some intrepid buyers who took the plunge.
0:00:46 > 0:00:50Did they sink or did they swim? Here's what they bought.
0:00:51 > 0:00:55You can ring the changes inside and outside in this house in Cheshire.
0:00:55 > 0:00:59This is a big money-making opportunity.
0:00:59 > 0:01:00Ker-ching!
0:01:01 > 0:01:04With so many rooms, this bungalow in Peterborough
0:01:04 > 0:01:06gets top marks for its homework!
0:01:07 > 0:01:10Lots of ticks on my list, which is a good thing.
0:01:11 > 0:01:16And I head to Devon, where you should keep your head down in this unusual property!
0:01:16 > 0:01:19This is the door out to the back garden!
0:01:19 > 0:01:21CHUCKLES
0:01:23 > 0:01:28All these properties went to auction. We'll find out who bought them and what they paid
0:01:28 > 0:01:31when they went under the hammer.
0:01:37 > 0:01:42I'm in the historic market town of Sandbach. It's grown rapidly in recent years
0:01:42 > 0:01:46as it's an ideal commuter town for Manchester and Merseyside.
0:01:46 > 0:01:50Sandbach is also home to one of the world's greatest brass bands,
0:01:50 > 0:01:52Foden's Richardson.
0:01:52 > 0:01:56But will the house I'm here to see require a lot of huff and puff too?
0:01:56 > 0:01:58Let's find out.
0:02:02 > 0:02:05Sandbach here is a terribly nice place to live.
0:02:05 > 0:02:09Surrounded by the Cheshire countryside, I used to cycle round here on my bike.
0:02:09 > 0:02:12But I'm a bit perplexed because I'm here to see this,
0:02:12 > 0:02:18a two-bedroomed end-of-terrace at a guide price of 180,000 quid.
0:02:19 > 0:02:21I don't care how good it is inside,
0:02:21 > 0:02:23that's a lot of money for a terrace.
0:02:23 > 0:02:25# It's gonna take money
0:02:27 > 0:02:29# A whole lot of spending money
0:02:29 > 0:02:32# It's gonna take plenty of money #
0:02:32 > 0:02:37The average price for a two-bed terrace on this street is 170,000,
0:02:37 > 0:02:4110,000 less than the guide price was for this property.
0:02:41 > 0:02:42Let's investigate why.
0:02:45 > 0:02:47Well, nothing too spectacular so far.
0:02:47 > 0:02:51A bit of a dark and dingy entrance. Front sitting room.
0:02:51 > 0:02:54Nice floorboards and an open fire, which is good to see.
0:02:54 > 0:02:57Stairs up to your bedrooms there.
0:02:57 > 0:02:59Through into the rear living room area.
0:02:59 > 0:03:03This is nice, a big stone fireplace. That's lovely.
0:03:03 > 0:03:06Not quite worth the money on its own, though, I have to say.
0:03:06 > 0:03:10A larder there. A useful storage space.
0:03:10 > 0:03:14Maybe the kitchen holds the key. Through here.
0:03:15 > 0:03:20I guess if it had some hand-made bespoke kitchen units,
0:03:20 > 0:03:23we could see the value, but... Nope.
0:03:23 > 0:03:25At the end there is the bathroom.
0:03:25 > 0:03:29And the loo. No whirlpool bath in there!
0:03:29 > 0:03:30Got me flummoxed!
0:03:32 > 0:03:36So, why was the guide price 180,000? Hmm.
0:03:36 > 0:03:41The plot thickens. Perhaps this mystery calls for Sherlock Holmes,
0:03:41 > 0:03:42pun, of course, intended!
0:03:44 > 0:03:46# It's a mystery
0:03:46 > 0:03:49# Oh, it's a mystery
0:03:49 > 0:03:53# I'm still searching for a clue
0:03:54 > 0:03:56# Is it a mystery... #
0:03:56 > 0:04:00Well, maybe upstairs hides the clue. What have we got?
0:04:00 > 0:04:03Fairly standard layout. Bedroom on that side,
0:04:03 > 0:04:05and over here to another bedroom.
0:04:05 > 0:04:08Good sized doubles, but nothing spectacular at all.
0:04:08 > 0:04:11The whole house is in reasonable condition.
0:04:15 > 0:04:17That's the answer!
0:04:17 > 0:04:21# Into the great wide open
0:04:23 > 0:04:27# Under the skies of blue... #
0:04:27 > 0:04:31As you may have guessed, the reason this place had such a high guide price
0:04:31 > 0:04:33was not the house itself.
0:04:34 > 0:04:37It's the plot of land that's right behind it.
0:04:37 > 0:04:39It's absolutely gi-normous.
0:04:39 > 0:04:42It stretches all the way back there.
0:04:42 > 0:04:45That in itself wouldn't necessarily up the value,
0:04:45 > 0:04:47only a small amount,
0:04:47 > 0:04:51but what's key is that this plot of land has outline planning permission
0:04:51 > 0:04:53for the building of two houses.
0:04:53 > 0:04:57Judging by the size, I reckon you could get even more on here.
0:04:57 > 0:05:00So that is a potential windfall. Absolutely fantastic.
0:05:00 > 0:05:06The only fly in the ointment is it hasn't got official approval for an access road down the side.
0:05:06 > 0:05:11But in the scheme of things, it's not a big issue. This is a big money-making opportunity.
0:05:11 > 0:05:12Ker-ching!
0:05:13 > 0:05:18That guide price of 180,000 now seems a bargain.
0:05:18 > 0:05:20Time to consult a local estate agent.
0:05:24 > 0:05:28The land to the rear of the property was formerly a smallholding.
0:05:28 > 0:05:31It had some stables on it originally. Pigsties.
0:05:31 > 0:05:36It currently has outline planning permission for two dwellings.
0:05:37 > 0:05:41How much monthly rental income could this property generate?
0:05:42 > 0:05:46The property, as it stands, with some basic improvements,
0:05:46 > 0:05:52the rental per calendar month would be in the region of £500.
0:05:53 > 0:05:56How much could the house alone be worth if sold on?
0:05:57 > 0:06:06If the property was to be renovated, I think the value would be in the region of 130, 125, £130,000.
0:06:10 > 0:06:12Surely this is a developer's dream?
0:06:12 > 0:06:17With full planning permission, the land alone would be worth as much as 150,000.
0:06:17 > 0:06:21How much could the proposed houses sell for?
0:06:21 > 0:06:27With regard to the plots outside, the two semi-detached houses, when complete,
0:06:27 > 0:06:33would have a value in the region of 125 to £130,000, depending on specification.
0:06:36 > 0:06:39Well, the house itself, then, is fairly cute
0:06:39 > 0:06:45but the pot of gold in this instance is that building plot which is the garden.
0:06:45 > 0:06:49Fantastic opportunity. Let's see who spotted it when it went to auction.
0:06:50 > 0:06:53So, what shall we say for Lot 10?
0:06:53 > 0:06:55End-terraced house with a building plot for two.
0:06:55 > 0:07:00150,000 I'm bid. Standing right. At 150,000. Anything bid?
0:07:00 > 0:07:02160, can I say?
0:07:02 > 0:07:04At 150. You're saying 155, sir?
0:07:04 > 0:07:10At 155, the bid is seated. At 155.
0:07:10 > 0:07:11160?
0:07:11 > 0:07:14At 155. Looking for 160, now.
0:07:14 > 0:07:16New bidder, 160.
0:07:16 > 0:07:18At 160. 165?
0:07:20 > 0:07:21165.
0:07:21 > 0:07:23At 165.
0:07:23 > 0:07:26170, is it? 170.
0:07:27 > 0:07:30175. Saying one?
0:07:30 > 0:07:32At 171. 172?
0:07:32 > 0:07:35At 171. 172.
0:07:35 > 0:07:37173. 174.
0:07:38 > 0:07:40175. 176.
0:07:40 > 0:07:43177. 178.
0:07:43 > 0:07:46179. 180?
0:07:47 > 0:07:49Bid seated at 179.
0:07:49 > 0:07:52Against you standing at 179.
0:07:52 > 0:07:55Half, you say? At 179,500?
0:07:55 > 0:07:57I think he's waning.
0:07:57 > 0:08:01180? At 180. Another half?
0:08:01 > 0:08:05At £180,000, I'm selling it, then.
0:08:05 > 0:08:08First time. 180.
0:08:08 > 0:08:10Second time.
0:08:10 > 0:08:14Third and final time at 180. Are we all done?
0:08:14 > 0:08:16You've bought it, sir. Well done.
0:08:16 > 0:08:20Sandbach residents Chris and his wife Carolyn
0:08:20 > 0:08:22were the successful bidders.
0:08:28 > 0:08:31The former hoteliers and restaurant owners
0:08:31 > 0:08:34are now embarking on a property developing career.
0:08:34 > 0:08:37I caught up with Carolyn back at the house.
0:08:38 > 0:08:41- Carolyn, lovely to meet you. - Nice to meet you.
0:08:41 > 0:08:47I think you wanted to buy this because of the back. But tell me why you wanted to buy the house.
0:08:47 > 0:08:54The house has a lot of potential for extension. It's two bedrooms, two receptions,
0:08:54 > 0:08:57- and a very peculiar kitchen! - Yes!
0:08:57 > 0:09:03And the bathroom. With the extra space on the side, we can extend to the side,
0:09:03 > 0:09:07make it three bedrooms, bathroom, en-suite upstairs.
0:09:07 > 0:09:10And an extra garage and downstairs room.
0:09:10 > 0:09:14- Turn it into a three-bed end-of-terrace.- Three-bed house.
0:09:14 > 0:09:17- Nice. Quite a project.- Yes.
0:09:17 > 0:09:22- Tell me more about you.- About 13 years ago, we bought an old property
0:09:22 > 0:09:26and doubled its size. That became our family home.
0:09:26 > 0:09:28From then, we've done bits and pieces.
0:09:28 > 0:09:32Last year, we bought a property for my son to live in at university.
0:09:32 > 0:09:37- Great.- We extended that so there were four bedrooms instead of three.
0:09:37 > 0:09:43In terms of pure investment and development projects, is this something you've done before?
0:09:43 > 0:09:46No, not pure investment, no, or development, no.
0:09:49 > 0:09:53For a first timer, Carolyn is jumping in at the deep end.
0:09:53 > 0:09:56Let's just hope she's not out of her depth.
0:10:01 > 0:10:07In terms of the development of this bit, how long to do the house conversion?
0:10:07 > 0:10:09The house we're thinking about 12 months
0:10:09 > 0:10:14because obviously we'll wait three months for planning permission, minimum.
0:10:14 > 0:10:18We've got to get the plans done first, so it's more like four months.
0:10:18 > 0:10:23Then we've got to get the builder to have the space to fit it in.
0:10:23 > 0:10:27The house needs totally rewiring, central heating, new windows.
0:10:27 > 0:10:32- Obviously a new kitchen as well. - What's the budget for that?
0:10:32 > 0:10:37- About £40,000, we think.- Obviously the main reason you bought this is outside.
0:10:37 > 0:10:40- So shall we go out into the garden? - Yes, OK.- After you.
0:10:45 > 0:10:49Carolyn has big plans for the house and a budget to match.
0:10:49 > 0:10:54Outside, however, is where the really big bucks are to be made.
0:10:55 > 0:10:58- This is it. It's huge, isn't it? - Yes, it is!
0:10:58 > 0:11:03- At first I thought it was just this bit, but it stretches over there as well.- Yes.
0:11:03 > 0:11:05Talk me through what you'd like to do with it.
0:11:05 > 0:11:10- At the moment, it's got outline planning permission for two properties.- Yes.
0:11:10 > 0:11:17When we came to have a look, we thought there was potential for at least four properties.
0:11:17 > 0:11:20- I'll show you the plan.- OK.
0:11:20 > 0:11:23They just gave them outline planning for two.
0:11:23 > 0:11:29But we feel if you come in and round onto the plot from this position,
0:11:29 > 0:11:32you can fit two properties there and then two here at least.
0:11:32 > 0:11:37Have you spoken to the planners to get an idea if that would be approved in principle?
0:11:37 > 0:11:44- No, not yet.- Ooh.- We've instructed the architects. They've had a look round
0:11:44 > 0:11:47and they don't see a problem with what we're suggesting.
0:11:47 > 0:11:51As gaining access from the side of the current house is an issue,
0:11:51 > 0:11:55the solution could be to enter from the existing close at the rear.
0:11:55 > 0:11:59But I still have concerns about those unresolved planning issues.
0:11:59 > 0:12:05Given this is your first development project, it's a big thing, building houses from scratch.
0:12:05 > 0:12:09- Yes.- What do you feel about that? - We wouldn't build them ourselves.
0:12:09 > 0:12:12- You wouldn't?- No. We want to go for full planning permission,
0:12:12 > 0:12:14and then sell the plot on to builders.
0:12:14 > 0:12:17Oh, wow. So keep the house.
0:12:17 > 0:12:24Keep the house and do that up. Within six months get full planning permission for the land and sell it.
0:12:24 > 0:12:25Why not do it yourself?
0:12:25 > 0:12:31- Um, no. We're not builders. - Right. You can employ builders.
0:12:31 > 0:12:33We'd rather have the quick turnaround.
0:12:33 > 0:12:38As a first time developer, I think Carolyn's wise to get the money in the bank,
0:12:38 > 0:12:41giving her the funds to purchase another property.
0:12:41 > 0:12:46- You've got the developer bug, have you?- Yes!
0:12:46 > 0:12:47What is it about it you like?
0:12:47 > 0:12:51I'm not sure, really. It's just quite exciting, doing it.
0:12:51 > 0:12:54Congratulations, and good luck with it all.
0:12:54 > 0:12:57- Thanks very much. - I'll see how you get on.- Thank you.
0:12:58 > 0:13:03So, Carolyn and her partner are buying this for the obvious development potential at the back.
0:13:03 > 0:13:07But let me stress, it's only got outline planning permission at the moment,
0:13:07 > 0:13:11not full planning permission. It may not even happen.
0:13:11 > 0:13:15That's the jeopardy. Want to know what happens? Find out later in the show.
0:13:18 > 0:13:22For the next property that went under the hammer,
0:13:22 > 0:13:26I'm wrapped up warm and headed for just outside Peterborough.
0:13:26 > 0:13:32Just ten minutes from the town centre and we're in popular residential area territory.
0:13:32 > 0:13:37It seems a nice neighbourhood and the property I'm here to see looks OK, too.
0:13:37 > 0:13:40It's this bungalow with a guide price of 135,000.
0:13:40 > 0:13:43What do we reckon? Two bedrooms? Three, maybe?
0:13:43 > 0:13:45Nope, guess again.
0:13:45 > 0:13:48It's got five! But where?
0:13:48 > 0:13:51Let's go inside and find out.
0:13:53 > 0:13:57The front looks a little small - dinky, even!
0:13:57 > 0:14:00Maybe there was a misprint in the catalogue.
0:14:02 > 0:14:06We know the previous owner had already started work on this house.
0:14:06 > 0:14:09I have to say, first impressions are really good.
0:14:09 > 0:14:11You can almost still smell the paint in here.
0:14:11 > 0:14:17It is in really good nick. There's a huge lounge, fantastic for entertaining.
0:14:17 > 0:14:21A coal effect gas fire here to keep you nice and warm.
0:14:21 > 0:14:23Two big windows letting in lots of light.
0:14:23 > 0:14:26Some radiators, so there's gas central heating,
0:14:26 > 0:14:30fantastic, and the best news for me is it's nice and warm in here
0:14:30 > 0:14:33because out there, it's freezing today.
0:14:33 > 0:14:36So lots of ticks on my list, which is good.
0:14:36 > 0:14:39- # I really can't stay - But baby it's cold outside
0:14:39 > 0:14:41- # Got to go away - Baby, it's cold outside... #
0:14:41 > 0:14:47I can't count the number of chilly, draughty and damp places I've viewed for this programme.
0:14:47 > 0:14:49But this little bungalow is toasty and dry.
0:14:49 > 0:14:56That means the potentially major jobs like windows, central heating and insulation are all fine.
0:14:56 > 0:14:59And the place is well presented. So far, so good!
0:15:02 > 0:15:06I'm pleased to see this kitchen is at the back of the property
0:15:06 > 0:15:13because I always harp on about the fact that it's nice to have instant access to the garden.
0:15:13 > 0:15:17Talking about kitchens, what a mighty fine kitchen we have here.
0:15:17 > 0:15:22This cooker is brand new. The kitchen is in really good condition.
0:15:22 > 0:15:24I'd say that's new as well.
0:15:24 > 0:15:27There's a breakfast bar so you can sit and eat here.
0:15:27 > 0:15:31Something that does worry me slightly is this conservatory.
0:15:31 > 0:15:33It is freezing out here,
0:15:33 > 0:15:37on a day like today. There's no heating, no radiators at all.
0:15:37 > 0:15:44So I wouldn't necessarily call it a dining space, though you could fit a dining table and chairs out there.
0:15:44 > 0:15:46So I'd need to improve on that area.
0:15:46 > 0:15:50But once again, another fine room in this house.
0:15:50 > 0:15:54What I want to know is, where are those five bedrooms?
0:15:55 > 0:15:59There's certainly one to the front with these built-in wardrobes
0:15:59 > 0:16:02and there's a small room that could be a single.
0:16:02 > 0:16:06There's an odd tiled room at the back, which could be a dining room,
0:16:06 > 0:16:10but apart from the bathroom behind the stairs, that's it.
0:16:10 > 0:16:15It's a bungalow, but there's nothing else downstairs. So the hunt's on upstairs.
0:16:15 > 0:16:16# Call me the seeker
0:16:18 > 0:16:23# I've been searching low and high #
0:16:23 > 0:16:27Now, the other three bedrooms are upstairs in this converted roof space.
0:16:27 > 0:16:32You'd usually only get a couple of rooms out of a bungalow attic.
0:16:32 > 0:16:35Maybe an en-suite as well. So three does sound excessive.
0:16:35 > 0:16:40But what I think it is is that this bedroom is particularly small
0:16:40 > 0:16:42and it's crying out to be turned into a bathroom.
0:16:42 > 0:16:46Nobody likes traipsing downstairs in the night to the loo.
0:16:46 > 0:16:50The space up here means you don't have to. So that's sorted.
0:16:50 > 0:16:55A few thousand pounds spent up here is all you would need to convert this into a bathroom.
0:16:55 > 0:16:59You'd lose a bedroom, but I reckon four is enough for a bungalow anyway.
0:17:02 > 0:17:04When you go into the garden,
0:17:04 > 0:17:07you can see that pushing the extension up instead of out
0:17:07 > 0:17:10has meant preserving valuable outside space.
0:17:12 > 0:17:16And with that 135,000 guide price,
0:17:16 > 0:17:19you can get a place that's ready to move into straight away.
0:17:20 > 0:17:24I asked along a local estate agent to see if he was as impressed as me.
0:17:26 > 0:17:30The layout itself I feel potentially could be improved upon.
0:17:30 > 0:17:33On the ground floor is the main bathroom.
0:17:33 > 0:17:36With the three bedrooms on the first floor,
0:17:36 > 0:17:40potentially you would benefit from putting a further bathroom on the first floor.
0:17:40 > 0:17:47So with it guided at 135,000, what sort of resale figure could it fetch?
0:17:48 > 0:17:51If the property was renovated to a high standard, I'd suggest that
0:17:51 > 0:17:55it would be worth somewhere in the region of 195 to £200,000.
0:17:55 > 0:17:58What level of rental income could it achieve?
0:17:58 > 0:18:01I'd say if you were to put this property up for rent,
0:18:01 > 0:18:07in a renovated condition, you'd achieve in the region of 700 to 725 per calendar month.
0:18:11 > 0:18:16This bungalow isn't bad. Somebody's already done some great ground work.
0:18:16 > 0:18:21You can only improve on their thinking with a few small alterations here and there.
0:18:21 > 0:18:25The guide price is realistic and still leaves some potential profit.
0:18:25 > 0:18:28All in all, I think it's a great little opportunity.
0:18:28 > 0:18:31Let's see who agreed at the auction.
0:18:34 > 0:18:38So, lot number four. Where will you start me? 150 for it?
0:18:38 > 0:18:40140. 130, if you like.
0:18:40 > 0:18:42130 to start? 130,000 I'm bid.
0:18:42 > 0:18:43£130,000.
0:18:43 > 0:18:45At 130.
0:18:45 > 0:18:46132 here. 132.
0:18:46 > 0:18:49134. 136 here.
0:18:49 > 0:18:52£138,000 at the back of the room. 138. I'll take one.
0:18:52 > 0:18:54139. 140 may I make it?
0:18:54 > 0:18:57140,000 I'm at. 140 I'm bid.
0:18:57 > 0:19:00141 on the telephone. 142 if you want to bid me, sir.
0:19:00 > 0:19:03OK. It can be sold. We're in the room at 141.
0:19:03 > 0:19:04142.
0:19:04 > 0:19:06At 142.
0:19:06 > 0:19:10At £142,000. Back of the room. 143.
0:19:10 > 0:19:16At £143,000. Make no mistake, it's going to be sold. £143,000. 144.
0:19:16 > 0:19:20144,500. 144. 144,500. 145, may I make it?
0:19:20 > 0:19:22145 bid.
0:19:22 > 0:19:24At £145,000. The bid standing at the back.
0:19:24 > 0:19:29At £145,000 for the first time. It's going to be sold.
0:19:29 > 0:19:30145,500.
0:19:30 > 0:19:33Fresh bid here at 145,500.
0:19:33 > 0:19:38At 145,500. 146 now? At 145,500 for the first time.
0:19:38 > 0:19:43Second time. Third and final time at 145,500. Yours, sir.
0:19:43 > 0:19:46- Your number?- Thank you. - 204. Thank you very much.
0:19:48 > 0:19:51Those last-minute gate-crashers were Robin and Susan
0:19:51 > 0:19:55who bagged the bungalow for £145,500,
0:19:55 > 0:19:5712.5 grand over the guide price.
0:19:57 > 0:20:02The couple are both recently retired after both taking early redundancy from their jobs.
0:20:02 > 0:20:05Robin worked for a fork-lift company
0:20:05 > 0:20:08and Susan for a mail-order business.
0:20:08 > 0:20:11This was to be a new home for them. I met them there to find out more.
0:20:12 > 0:20:18Guys, congratulations. That was a cracking auction. Your first and only bid!
0:20:18 > 0:20:21- Yes, just the one. - 145,000 and a half!
0:20:21 > 0:20:23Yeah. Excellent, wasn't it?
0:20:23 > 0:20:25Is that your first auction, Robin?
0:20:25 > 0:20:31It's the first property auction I've ever been to and I have to say it was nerve-wracking!
0:20:31 > 0:20:33- Were you quite scared?- Yes!
0:20:33 > 0:20:36Our hearts were coming out of our chests, sort of thing!
0:20:36 > 0:20:39Just think, Robin, for 500 quid, you could have lost this.
0:20:39 > 0:20:44- Indeed.- You didn't know whether to do that bid, did you?
0:20:44 > 0:20:50No. We'd done some research on the price of properties round here after viewing it.
0:20:50 > 0:20:57We had a discussion and we set our price at 145,000. Our limit.
0:20:57 > 0:21:03Susan then said to me, "If we get to the stage where another 500 would secure it,
0:21:03 > 0:21:07"are we going to go for it?" So I said for another 500 we would go for it.
0:21:07 > 0:21:10It only took that extra 500 and you got it!
0:21:10 > 0:21:15- I know. What a scary time that was! - How did you celebrate after the auction?
0:21:15 > 0:21:17Came home and had a cup of tea!
0:21:19 > 0:21:22# Oh, how I love my tea
0:21:22 > 0:21:26# Tea in the afternoon! #
0:21:26 > 0:21:32I would have cracked open a bottle of bubbly myself, but champagne's not everyone's cup of tea!
0:21:32 > 0:21:37But what is their cup of Darjeeling is that they only live five minutes down the road.
0:21:37 > 0:21:40They'll rent their old house out for the time being.
0:21:40 > 0:21:45The pair know they've got a good deal here. Why did they want this bungalow in the first place?
0:21:47 > 0:21:52We always said that when we retired, although it's semi-retirement for me,
0:21:52 > 0:21:56we decided a long time ago that we'd like to live in a bungalow.
0:21:56 > 0:21:58This came up and we just went for it.
0:21:58 > 0:22:01What is it about a bungalow, or a single-storey?
0:22:01 > 0:22:04It's an age thing, really, I suppose.
0:22:04 > 0:22:06Oh, come on, you two!
0:22:06 > 0:22:08Running up and down stairs, things like that.
0:22:08 > 0:22:13I don't know why I like bungalows. I've really always liked them.
0:22:13 > 0:22:17Saying you like bungalows, there's a lot of rooms upstairs!
0:22:17 > 0:22:20You'll be needing to go up those stairs a lot.
0:22:20 > 0:22:21Occasionally, I suppose.
0:22:23 > 0:22:28Robin and Susan do plan to turn that small bedroom upstairs into a bathroom,
0:22:28 > 0:22:31leaving them a total of three doubles and one single.
0:22:31 > 0:22:36With a three grand budget, which should be enough for the conversion, they're sticking with the rest.
0:22:36 > 0:22:40Susan doesn't like the kitchen floor tiles
0:22:40 > 0:22:44but in this era of belt-tightening, they're right not to go crazy.
0:22:48 > 0:22:54- Am I right in thinking you've had a bit of bad luck with your current jobs?- Depends how you look at it.
0:22:54 > 0:22:58I think my wife and I basically view it as good luck, really.
0:22:58 > 0:23:05Hand on my heart. My wife was just coming up to retirement age when she was made redundant.
0:23:05 > 0:23:08The company she worked for closed down.
0:23:08 > 0:23:12I had the opportunity to take voluntary redundancy
0:23:12 > 0:23:15so we discussed it and did that, we got our redundancy money,
0:23:15 > 0:23:19and our lump sums from our pension.
0:23:19 > 0:23:23- Nice.- That gave us the advantage of being able to buy this property.
0:23:23 > 0:23:28- How does that make you feel? - I don't know. I miss work.
0:23:28 > 0:23:33I will say that. This is a bit of a project to keep me busy for a short while.
0:23:33 > 0:23:39- What I'll do when I finish what I need to do in here... I'm a big DIY fan.- OK.
0:23:39 > 0:23:42So I'm quite happy. I'm pleased with it. Well pleased.
0:23:42 > 0:23:46Is he ready with his DIY skills? Do we have the belt at the ready?
0:23:46 > 0:23:50- The drill, the hammer? - He has got everything.
0:23:50 > 0:23:52What will he be like to live with?
0:23:52 > 0:23:55He can't be any worse than what he is now! So...
0:23:55 > 0:24:02I can probably get rid of him for a couple of days and I can stay in the house there and do what I want.
0:24:02 > 0:24:05But then I'll be here to clean up and tidy up
0:24:05 > 0:24:09and a little bit of painting. I'm not that good at DIY.
0:24:09 > 0:24:15I don't know. I suppose I could do a bit of painting. But it probably wouldn't be to his standard.
0:24:15 > 0:24:20Do you think your retirement probably has brought you a bit closer together?
0:24:20 > 0:24:25And you've got a really happy future doing things in this wonderful bungalow?
0:24:25 > 0:24:28I think we've always been close together.
0:24:28 > 0:24:32We've never been in each other's company as much as we are now.
0:24:32 > 0:24:38I know everybody says it, but we don't argue. We have disagreements.
0:24:38 > 0:24:43- But we always go to bed smiling. - That's what I want to hear.
0:24:43 > 0:24:48- This really is a happy ending for you, isn't it?- Yes.- Can't wait to see it when it's finished.
0:24:48 > 0:24:50- Thanks very much. - Thank you, Sue.- Thank you.
0:24:50 > 0:24:55Sue and Robin have turned what could have been a difficult year
0:24:55 > 0:24:57into a really exciting time.
0:24:57 > 0:25:02A few changes here and there will see this bungalow really shine.
0:25:02 > 0:25:06The big question is, will Sue's DIY meet Robin's standards?
0:25:06 > 0:25:10You can find out how it all goes later on in the programme.
0:25:11 > 0:25:16Coming up: lots to do in this Devon property, but there's one redeeming feature.
0:25:16 > 0:25:20One thing you can't take away from this property is that you have got a sea view.
0:25:21 > 0:25:25We go back to Peterborough to see if Robin and Susan
0:25:25 > 0:25:27are enjoying retirement.
0:25:27 > 0:25:31I do miss my job, yes. But you chill out. Enjoy old age.
0:25:32 > 0:25:38First, we return to Cheshire to check on the new development and the progress of the original property.
0:25:39 > 0:25:41It's made the house into a family home.
0:25:48 > 0:25:51When we were last in the Cheshire town of Sandbach,
0:25:51 > 0:25:56Carolyn and her husband Chris had just bought this two-bed semi for 180 grand.
0:25:59 > 0:26:04Quite a lot, but it included a large building plot at the rear
0:26:04 > 0:26:07with outline planning permission for two dwellings.
0:26:07 > 0:26:12They intended to reapply for planning to build a pair of semi-detached houses on the plot.
0:26:12 > 0:26:17And the house, they were going to apply to build an extension on the side
0:26:17 > 0:26:20then completely renovate it and sell it on.
0:26:20 > 0:26:22Well, 14 months have passed
0:26:22 > 0:26:25and we met up again with Carolyn at the property
0:26:25 > 0:26:29where, true to her word, an extension has been added.
0:26:32 > 0:26:36As you can see, we built a two-storey extension.
0:26:36 > 0:26:39We have a garage and dining room on the ground floor
0:26:39 > 0:26:44and an extra bedroom, a bathroom and en-suite on the floor above.
0:26:44 > 0:26:49I'm really pleased with the results of the extension. It's a family home now.
0:26:49 > 0:26:53The inside of the cottage had two very tired and dated rooms.
0:26:53 > 0:26:57But now the front living room has lost that brick fireplace.
0:26:57 > 0:27:02A stylish fire has gone in and the whole house has been rewired
0:27:02 > 0:27:04and new windows fitted.
0:27:04 > 0:27:08Downstairs, the original bathroom is now a cloakroom
0:27:08 > 0:27:11and what was the kitchen has become a utility room.
0:27:11 > 0:27:16A fabulous new kitchen has been built in one of the former reception rooms.
0:27:16 > 0:27:19Originally, this was the room with an open stone fireplace.
0:27:19 > 0:27:26We removed the chimney breast and made the whole kitchen a much bigger room.
0:27:26 > 0:27:30We put new units in but kept it very modern with the stainless steel.
0:27:30 > 0:27:33I'm really pleased with the way it is.
0:27:33 > 0:27:39Carolyn's project managed the work and husband Chris did a lot of the labouring and decorating.
0:27:39 > 0:27:44But how much did it cost? Did they stick to their £40,000 budget?
0:27:44 > 0:27:49The whole of the work on this property has cost £65,000.
0:27:49 > 0:27:56The extension itself has probably cost £55,000 including architect's fees and planning permission.
0:27:56 > 0:28:01So Carolyn's budget for the house has expanded to 65,000
0:28:01 > 0:28:04including architect's fees for the extension.
0:28:04 > 0:28:06We've now got the property on the market.
0:28:06 > 0:28:10We're hoping to sell it ourselves and not go through an agent.
0:28:11 > 0:28:18So, good news. The first part of the jigsaw seems to be going to plan. But what about the land?
0:28:19 > 0:28:23The outbuildings have been demolished. So what's been happening?
0:28:23 > 0:28:27We were thrilled when we took it to the architect and he started working on it.
0:28:27 > 0:28:31Because everything fitted in perfectly.
0:28:31 > 0:28:35We thought there would be no problem in getting planning permission.
0:28:35 > 0:28:37But there was a problem.
0:28:37 > 0:28:41The outline planning permission was for two detached houses.
0:28:42 > 0:28:47Carolyn's application for four semi-detached properties was initially rejected.
0:28:47 > 0:28:52But after an appeal and various committee hearings, the planners gave the go-ahead.
0:28:52 > 0:28:55These are the plans that have been approved.
0:28:55 > 0:28:58We'll have a pair of semis in that gap there
0:28:58 > 0:29:00and another pair of semis here
0:29:00 > 0:29:04with the garden backing onto the existing house.
0:29:04 > 0:29:07We're really pleased with the plans that were approved.
0:29:07 > 0:29:11They'll be basically starter homes, two up, two down, two-bedroomed.
0:29:11 > 0:29:15In between the two will be the access from the close
0:29:15 > 0:29:18with parking for the vehicles for each of the two properties.
0:29:18 > 0:29:23Although the intention to sell the existing house remains the same,
0:29:23 > 0:29:27Carolyn and Chris's initial idea for the building plot has changed.
0:29:27 > 0:29:30We were intending to sell the land on to a builder.
0:29:30 > 0:29:34But we had so many traumas getting the planning permission through,
0:29:34 > 0:29:37that we feel attached to the land now
0:29:37 > 0:29:40so we've decided to build on it ourselves.
0:29:40 > 0:29:42How much will it cost?
0:29:42 > 0:29:48We estimate that the houses on the land will cost 35 to £40,000 each to build.
0:29:48 > 0:29:54So the four houses would require a budget of 140 to 160,000 to build.
0:29:55 > 0:29:58Time for some advice from two local estate agents.
0:29:58 > 0:30:02What do they think of the extended house that's up for sale
0:30:02 > 0:30:05and the potential for the four new properties?
0:30:05 > 0:30:10They've done a very good job indeed, extending it, creating a third bedroom
0:30:10 > 0:30:12and an extra room downstairs.
0:30:12 > 0:30:16The additional garage on the side is a big plus.
0:30:16 > 0:30:18The extension was really well worth doing.
0:30:18 > 0:30:21It's improved the property by about a third in size.
0:30:21 > 0:30:26It's a stylish design. It almost looks like a new house inside.
0:30:26 > 0:30:29The plans for the land are very good.
0:30:29 > 0:30:34There's a demand for that type of property. They'll be popular.
0:30:34 > 0:30:38What valuation would the experts now put on the current house?
0:30:38 > 0:30:41Bear in mind they bought it for 180,000
0:30:41 > 0:30:45and the renovation and extension cost 65,000,
0:30:45 > 0:30:47making a total of 245,000.
0:30:50 > 0:30:53In the current market, I would expect this property
0:30:53 > 0:30:57to achieve around 190 to £200,000.
0:30:57 > 0:31:02I would expect it to achieve on the open market somewhere between 185,000 to £190,000.
0:31:02 > 0:31:07On that range of valuations of 185 to 200,000,
0:31:07 > 0:31:11they're looking at a loss of between 45 and £60,000.
0:31:12 > 0:31:15We've got it on the market for 215.
0:31:15 > 0:31:21If we have to drop the price and sell it for nearer the 200 mark, we won't be too disappointed.
0:31:21 > 0:31:25Of course, the real money to be made here will come from selling the four new houses.
0:31:25 > 0:31:29They'll cost between 140 and 160,000 to build
0:31:29 > 0:31:33and Carolyn's already spent £12,000 on architect's fees
0:31:33 > 0:31:35and the cost of removing the outbuildings.
0:31:35 > 0:31:38So how much could these four houses be worth?
0:31:38 > 0:31:43A two-bed semi, I would market that at around 125 to 130,000.
0:31:43 > 0:31:47The two-bed semi-detached properties proposed to the rear,
0:31:47 > 0:31:51I would expect to achieve around 130 to £135,000 each.
0:31:51 > 0:31:56If they do achieve that top valuation of 135,000,
0:31:56 > 0:32:00then the four new houses and the land could produce £540,000,
0:32:00 > 0:32:05a potential gross profit of £368,000.
0:32:05 > 0:32:09Once the loss from the original house of £60,000 is allowed for,
0:32:09 > 0:32:12overall, the potential gross profit for the whole project
0:32:12 > 0:32:15could be £308,000
0:32:15 > 0:32:17before the usual expenses.
0:32:19 > 0:32:25Yeah, we were thinking around 130 each, so that's about what we would imagine.
0:32:31 > 0:32:37Of course, the houses have yet to be built and the budget will have to be carefully monitored.
0:32:37 > 0:32:41But their first very ambitious new-build project is looking promising.
0:32:41 > 0:32:44So how would Carolyn sum up the experience?
0:32:44 > 0:32:49It's been a number of things. It's been really nerve-wracking, exciting, fascinating,
0:32:49 > 0:32:51and, overall, very enjoyable.
0:32:54 > 0:32:57I'm in Paignton in Devon,
0:32:57 > 0:33:01not far from Torquay, which forms part of what's called the English Riviera
0:33:01 > 0:33:04due to its unusually warm climate.
0:33:04 > 0:33:08It sounds great, so grab a bucket and spade.
0:33:08 > 0:33:12But before we begin, I've got a rather less exciting word of warning.
0:33:12 > 0:33:17Now, I'm aware there's a history of movement in this particular street.
0:33:17 > 0:33:21But you don't have to be a rocket scientist to figure out,
0:33:21 > 0:33:25when you see something like this, yeah, there is seriously a problem.
0:33:25 > 0:33:29The side of that house was looking like it was going to fall down.
0:33:29 > 0:33:34So with that in mind, I'm going to approach the property I'm here to see with caution.
0:33:34 > 0:33:36Now, being near the sea is one thing.
0:33:36 > 0:33:41But you don't want your house heading closer and closer to the beach!
0:33:44 > 0:33:48This whole road was built on a very steep gradient.
0:33:48 > 0:33:51Great for views, less so for foundations, it seems!
0:33:51 > 0:33:53Still, let's keep an open mind.
0:33:53 > 0:33:57The property I'm here to see is a three-bedroomed detached,
0:33:57 > 0:34:01which is nice in a street full of primarily semi-detached and terraces.
0:34:01 > 0:34:03At a guide price of 120,000 quid,
0:34:03 > 0:34:05it's set high up off the road.
0:34:05 > 0:34:08Let's take a look. Hiking boots on!
0:34:08 > 0:34:10And a hike it is.
0:34:10 > 0:34:14Immediately this place rules out anyone with mobility issues.
0:34:14 > 0:34:16Let's hope the house is worth the effort.
0:34:18 > 0:34:20Nice little entrance hall here.
0:34:20 > 0:34:24A divider between here and the lounge.
0:34:24 > 0:34:30Straight into here. The whole house is just so, what, late '60s, '70s?
0:34:30 > 0:34:36The old varnished stone round the fire! Something like that.
0:34:36 > 0:34:41And this ceiling, it reminds me of a train set that's been put upside-down.
0:34:41 > 0:34:43It's very, very unusual.
0:34:43 > 0:34:46Through to the rear sitting room.
0:34:46 > 0:34:48More stonework - lovely, lovely!
0:34:48 > 0:34:50Let's go and find the kitchen.
0:34:52 > 0:34:54The kitchen is decent enough,
0:34:54 > 0:34:56with reasonable units.
0:34:56 > 0:34:59But it is small, there's no two ways about that.
0:34:59 > 0:35:01It's a shame, and it gets worse.
0:35:01 > 0:35:071930s properties like this often had small kitchens. Fair enough.
0:35:07 > 0:35:14But what you don't expect is to have built onto it a fairly monstrous conservatory affair here.
0:35:14 > 0:35:16It has got a loo, which is quite sweet.
0:35:16 > 0:35:20Plastic sheets on the roof. Not good at all.
0:35:20 > 0:35:22It gets even better. Look at this!
0:35:22 > 0:35:24This little lean-to.
0:35:24 > 0:35:29Maybe the people who lived here were just terribly, terribly small!
0:35:29 > 0:35:32That's the door out to the back garden!
0:35:32 > 0:35:34CHUCKLES
0:35:34 > 0:35:40No, it isn't an optical illusion. This is the tiniest back door in the world! Probably.
0:35:40 > 0:35:46The good news is, once you do manage to get through it and out into the garden, that is a good size.
0:35:46 > 0:35:50And you have the tremendous added bonus of a garage at the back. So,
0:35:50 > 0:35:53so far, we have a large garden and lots of living space.
0:35:53 > 0:35:57What's on offer up on the first floor?
0:35:57 > 0:36:01So, upstairs. Again, it's actually not a bad size.
0:36:01 > 0:36:05It just needs messing around with, for sure. A separate loo
0:36:05 > 0:36:09and a bathroom there. You could knock those together.
0:36:09 > 0:36:13Double bedroom there. Box room, and through to another double bedroom.
0:36:13 > 0:36:17Again, not a bad space, just need to get rid of all this clutter.
0:36:17 > 0:36:23One thing you can't take away from this property is the fact that you have actually got a sea view.
0:36:23 > 0:36:27Well, I say view. It's actually more of a sea glimpse,
0:36:27 > 0:36:32but it is there, nonetheless. Meanwhile, things have improved on the first floor.
0:36:32 > 0:36:38There are three bedrooms, two with washing facilities. I think that despite all the DIY distress,
0:36:38 > 0:36:42this house could prove to be a solid investment.
0:36:42 > 0:36:47What would a property expert from the auction house who sold this lot make of it?
0:36:48 > 0:36:52Looking over the property, it mainly does need cosmetic works,
0:36:52 > 0:36:55such as a new kitchen, new bathroom,
0:36:55 > 0:36:57decoration from top to bottom.
0:36:57 > 0:36:59The guide price was 120,000.
0:36:59 > 0:37:04How much could it achieve in this condition and after a refurbishment?
0:37:04 > 0:37:08The property as it stands could be worth in the region of 120 to £125,000.
0:37:08 > 0:37:15The likely price of this property once refurbished could be in the region of £175,000 to £180,000.
0:37:16 > 0:37:21Could a buy-to-let investor find tenants and how much rent would be feasible?
0:37:21 > 0:37:26There's a strong demand for rental properties of this type in this area of Paignton.
0:37:26 > 0:37:29You should get around £650 per calendar month.
0:37:33 > 0:37:37So an interesting auction lot, and plenty to reflect on.
0:37:37 > 0:37:41So, not a lot of money in this one.
0:37:41 > 0:37:44But a good solid property that would make a great family home.
0:37:44 > 0:37:50All you've got to hope is that the slight instability of the surrounding ground
0:37:50 > 0:37:52means it doesn't get even closer to the sea!
0:37:52 > 0:37:57Let's find out how it got on when it went under the hammer.
0:37:57 > 0:38:00Three-bed, two-storey detached house.
0:38:00 > 0:38:05Garage at the rear. Who's here for Lot 21?
0:38:05 > 0:38:08100,000 straight in. Nice and simple. 100.
0:38:08 > 0:38:10At 100. 100 I've got.
0:38:10 > 0:38:13100. At 100. At 100. At 100. He's happy!
0:38:13 > 0:38:15At 100. At 100.
0:38:15 > 0:38:17At 100.
0:38:17 > 0:38:19102? 102.
0:38:19 > 0:38:21104.
0:38:21 > 0:38:23104. One hundred and... 104.
0:38:23 > 0:38:26104. 106.
0:38:26 > 0:38:27108.
0:38:28 > 0:38:30110.
0:38:30 > 0:38:3112.
0:38:31 > 0:38:34And 14. 114. 114.
0:38:34 > 0:38:36114. At 114.
0:38:36 > 0:38:38At 114, then.
0:38:38 > 0:38:41At 114 once. 15.
0:38:42 > 0:38:44115.
0:38:44 > 0:38:46At 115. At 115.
0:38:46 > 0:38:49He's right in front of you. Out of kicking reach!
0:38:49 > 0:38:51At 115 once.
0:38:51 > 0:38:53At 115 twice.
0:38:53 > 0:38:56At 115. Sure and done?
0:38:56 > 0:39:00Here goes. Gentleman in the aisle seat. 115 and going.
0:39:00 > 0:39:03Yours. Congratulations. Well done. Well done.
0:39:03 > 0:39:08That final successful bid of 115,000 came from James and Martin.
0:39:10 > 0:39:15They're a local pair who braved the climb back up to the house to tell me more about their plans.
0:39:15 > 0:39:17- James, Martin.- Hi.- Hi.
0:39:17 > 0:39:21Congratulations. Tell me why you wanted to buy this house.
0:39:21 > 0:39:26We just saw a lot of potential as far as the development and the return on it.
0:39:26 > 0:39:33- Is this something that you do? - We've been in property maintenance together for almost six years.
0:39:33 > 0:39:39I'm from a building background and managing director of building firms and things.
0:39:39 > 0:39:42Martin used to work with me for six years.
0:39:42 > 0:39:48I left the company I was managing director of in July to take a sabbatical and what have you.
0:39:48 > 0:39:54Unfortunately, as a result, the company collapsed and 30 or 40 people were made redundant.
0:39:54 > 0:40:01- Oh, no.- Martin's one of them, and so I spoke to him and said, "Would you like to do this with me?"
0:40:01 > 0:40:05- So you've set up a partnership? - Yeah.- Yes.
0:40:05 > 0:40:08What did you think, Martin, when James gave you a call
0:40:08 > 0:40:11- and asked if you wanted to go into business?- Very excited.
0:40:11 > 0:40:17It's a lot better than working for someone and lining their pockets,
0:40:17 > 0:40:20whereas we'll be lining our own, which is quite exciting.
0:40:24 > 0:40:28Well, they're not wrong. It's exciting times for the new venture.
0:40:28 > 0:40:32James will provide the cash and Martin the expertise
0:40:32 > 0:40:35in a partnership that could be going places.
0:40:36 > 0:40:38What are you going to do with the place?
0:40:38 > 0:40:41A full strip-out to begin with.
0:40:41 > 0:40:46These beautiful ceilings with those features are all coming down.
0:40:46 > 0:40:48Kitchen out, bathroom out.
0:40:48 > 0:40:52Dividing wall between the bathroom and toilet, that's down.
0:40:52 > 0:40:55So a full bathroom including shower enclosure.
0:40:55 > 0:40:59We're going to swap where the kitchen is to being a utility
0:40:59 > 0:41:04and where there's the first extension with the corrugated roof, slate it and put a kitchen in.
0:41:04 > 0:41:09- Oh.- Knock down the conservatory that's on there. Put a nice conservatory in. Is that it?
0:41:09 > 0:41:13Obviously all the remedial works outside. Guttering, rendering.
0:41:13 > 0:41:17All new windows going in to bring it up to spec.
0:41:17 > 0:41:21- It'll look nice when it's done. - How much have you set aside for the work?
0:41:21 > 0:41:24- 14.- 14.- Yeah.
0:41:24 > 0:41:27That seems quite tight for the amount of work to be done,
0:41:27 > 0:41:31especially considering there's also central heating to be fitted.
0:41:31 > 0:41:35But they're confident and have set an ambitious timescale of just ten weeks.
0:41:35 > 0:41:40They'll certainly need to get the best out of their skills. So how will it work?
0:41:40 > 0:41:46We'll work together. I'm not hands on trade background, but Martin is a tradesman extraordinaire.
0:41:46 > 0:41:51I know the sort of theories of it and how it's done.
0:41:51 > 0:41:54I've trained surveyors and what have you,
0:41:54 > 0:41:55but I've not got my hands dirty,
0:41:55 > 0:42:01so this is a new evolution for me, rather than sitting at a desk or doing a survey.
0:42:01 > 0:42:05- So you're going to be hammering and chiselling and sawing?- Yeah.
0:42:05 > 0:42:06- Screwing and all that?- Yeah.
0:42:06 > 0:42:09- Under my tuition!- Right.
0:42:09 > 0:42:12How are things going to work between you?
0:42:12 > 0:42:15I guess you've been the boss in the past, haven't you?
0:42:15 > 0:42:19And now it's a bit more level. How will that work?
0:42:19 > 0:42:26When me and James were working together, he wasn't my boss, if you know what I mean. We were more
0:42:26 > 0:42:31buddies, friends, than him being a managing director and me being an employee.
0:42:31 > 0:42:34- I mean, we've always got on very well.- Yes, we have.
0:42:34 > 0:42:37Right. Do you see this expanding?
0:42:37 > 0:42:42Potentially, yes. We'd like to get a few under our belt and employ more,
0:42:42 > 0:42:44and do it on a grander scale.
0:42:44 > 0:42:47We've got our eyes on two or three more at the moment.
0:42:47 > 0:42:50- A couple of informal tenders. - Anything in particular?
0:42:50 > 0:42:55- There's one near here.- Where? - Almost across the road.
0:42:55 > 0:42:58- Not the one that's falling to pieces?- The subsiding one.- What?!
0:42:58 > 0:43:02We did a lot of subsidence repairs on the insurance side, the company.
0:43:02 > 0:43:09I put Martin and a couple of tradesmen on a course to do all the underpinning, stitching and so on.
0:43:09 > 0:43:12Any worries about subsidence in this house?
0:43:12 > 0:43:16There has been a lateral restraining system put on here, a strapping system.
0:43:16 > 0:43:20Apparently there was an escape of water from a guttering system.
0:43:20 > 0:43:25So that's been done. The property is stable. We've got a certification of stabilisation.
0:43:25 > 0:43:28- So past problems have been sorted out.- Yeah.
0:43:28 > 0:43:33Unfortunately, the visuals provide an image that this place isn't as level as it is.
0:43:33 > 0:43:36With the windows on a tilt and the staircase on a tilt.
0:43:36 > 0:43:40All the extension parts are again on a tilt. So as you look around,
0:43:40 > 0:43:46you think, "Which way am I going?" But that will all be levelled out when we do the works.
0:43:46 > 0:43:48- I wish you all the best with it. - Thank you.- Good luck.
0:43:48 > 0:43:51- I look forward to seeing how you get on.- Thank you.- Thanks.
0:43:55 > 0:44:02It's good to hear James and Martin get on so well together. Any partnership needs solid foundations.
0:44:02 > 0:44:05Let's hope they're on a more level footing than the house is!
0:44:05 > 0:44:10James and Martin have certainly got the experience to make a success of this.
0:44:10 > 0:44:12I think they'll make a great team.
0:44:12 > 0:44:16Still the £14,000 budget, there's a lot to do for that money.
0:44:16 > 0:44:21And how will James cope with finally getting his hands dirty?
0:44:21 > 0:44:23Find out later in the show.
0:44:25 > 0:44:29It's been a while now, since we last saw those properties.
0:44:29 > 0:44:33So have the renovations been plain sailing or a bumpy ride?
0:44:33 > 0:44:34Time to find out.
0:44:36 > 0:44:39Earlier in the programme, local couple Robin and Susan
0:44:39 > 0:44:44bought this Peterborough bungalow for £145,500.
0:44:44 > 0:44:48They'd both recently been made redundant, so decided to use their money
0:44:48 > 0:44:52to buy this property, partially renovated by the previous owner.
0:44:55 > 0:45:00It's been six months now, and at the bungalow, the work is finished.
0:45:00 > 0:45:04We met up again with Robin and Susan to get the lowdown on the refurbishment.
0:45:09 > 0:45:13The large living room has been totally redecorated in neutral colours
0:45:13 > 0:45:16and it looks great. Plus a new carpet has been laid.
0:45:16 > 0:45:20And on the ground floor, the master bedroom has also been transformed.
0:45:22 > 0:45:26We moved in within about three months of starting the project.
0:45:26 > 0:45:28Not all the work had been completed.
0:45:28 > 0:45:33It's been ongoing as we still have our other house to work on as well,
0:45:33 > 0:45:35to get it ready for letting.
0:45:35 > 0:45:40So new tenants have moved in to their old house and they're settling in to the bungalow.
0:45:40 > 0:45:45But it's not just downstairs. Robin's been hard at work upstairs, as well.
0:45:46 > 0:45:53Basically, in the hall and landing it's been totally redecorated.
0:45:53 > 0:45:58We've kept the carpet. Painted all the spindles white.
0:45:59 > 0:46:04In here, this used to be a single bedroom
0:46:04 > 0:46:06which I've converted into a bathroom.
0:46:06 > 0:46:11I'm very pleased with the result. A nice double-ended bath there.
0:46:11 > 0:46:14And I think it looks very good.
0:46:14 > 0:46:19That's a great use for the fifth bedroom, converting it into the bathroom.
0:46:22 > 0:46:26So with the shower room downstairs in the original bathroom,
0:46:26 > 0:46:29there are still three bedrooms even though two have gone.
0:46:29 > 0:46:31One is now the bathroom and the other a study.
0:46:31 > 0:46:34Who's been responsible for all the work?
0:46:36 > 0:46:42I've done the majority of the work myself. Susan has helped with the jobs I don't like!
0:46:42 > 0:46:48Painted 32 spindles on the stairs. Rubbed them down, undercoated and painted them.
0:46:48 > 0:46:52I think they were OK, cos he's not done them again himself!
0:46:52 > 0:46:55I'm still an apprentice. Still learning!
0:46:55 > 0:46:57Robin's got high standards!
0:46:57 > 0:46:59Just look at the tiling in the kitchen.
0:46:59 > 0:47:04I've done tiling to the splash-backs all round.
0:47:04 > 0:47:07We fitted a new windowsill.
0:47:07 > 0:47:10My wife wanted a new hob and oven.
0:47:10 > 0:47:14Basic decoration and floor tiling finished.
0:47:15 > 0:47:20It's turned out nice. We colour co-ordinated with the cupboards that were already here.
0:47:20 > 0:47:23My wife's pleased with it. So am I.
0:47:23 > 0:47:24It feels just like home.
0:47:24 > 0:47:29Well, it is home, obviously, but it's just nice.
0:47:29 > 0:47:32- Feels like we've always been here. - Yes, always.
0:47:32 > 0:47:34The finish is really good.
0:47:34 > 0:47:39So how much have they had to spend? Did they keep to their budget?
0:47:39 > 0:47:42It's three to four we were looking at originally,
0:47:42 > 0:47:46when we based that budget on just the house itself.
0:47:46 > 0:47:49But we've had a lot more work done outside.
0:47:49 > 0:47:52We've spent probably about £11,500.
0:47:52 > 0:47:56Any overspend is never ideal,
0:47:56 > 0:48:00but in this instance, Robin and Susan are sensible to do all the work at once.
0:48:01 > 0:48:04And the garden certainly looks great.
0:48:08 > 0:48:09Let's see if two estate agents
0:48:09 > 0:48:11will give the bungalow the thumbs up.
0:48:14 > 0:48:16I think it's lovely. I really do.
0:48:16 > 0:48:19It's walk-in standard all the way through.
0:48:19 > 0:48:21There really isn't anything that needs doing.
0:48:21 > 0:48:23The colours are really good.
0:48:23 > 0:48:26The bathroom they've put in is top drawer.
0:48:26 > 0:48:29The bathroom being built upstairs is fantastic. Great idea.
0:48:29 > 0:48:32They've also kept the downstairs toilet
0:48:32 > 0:48:35which is very good, especially if someone's elderly.
0:48:35 > 0:48:41By block-paving the front, it's provided more off-road parking,
0:48:41 > 0:48:43which is a brilliant idea.
0:48:43 > 0:48:46Robin and Susan have now let out their previous house
0:48:46 > 0:48:50and are living here. How much income could the bungalow generate?
0:48:50 > 0:48:52This would rent for, in current condition,
0:48:52 > 0:48:56between £700 and £725 per calendar month.
0:48:56 > 0:49:00They're competing against four-bed houses locally.
0:49:00 > 0:49:04This, because of the condition, would rent for 750 per calendar month.
0:49:04 > 0:49:10That's good, but no, we purchased this property for ourselves.
0:49:10 > 0:49:12We're quite happy to be living here.
0:49:12 > 0:49:16I thought he'd say that. So how much could the bungalow sell for?
0:49:16 > 0:49:20They've spent £11,500 doing it up
0:49:20 > 0:49:25on top of the £145,500 they paid at auction.
0:49:25 > 0:49:29So a total of £157,000.
0:49:29 > 0:49:34I would currently value this property between 180 and £185,000.
0:49:34 > 0:49:39Even in the current market, 180,000 - in that kind of area -
0:49:39 > 0:49:41would secure a sale on this property.
0:49:41 > 0:49:46180 to 185,000 would produce a gross profit
0:49:46 > 0:49:51of between 23 and 28 grand before the usual selling expenses.
0:49:51 > 0:49:56It's good it's a profit. Any profit's good. Yeah,
0:49:56 > 0:49:58- I'm pleased with that. - Very pleased, yeah.
0:49:58 > 0:50:02- More than we would make in a bank, isn't it?- It is, yeah.
0:50:02 > 0:50:06That's a familiar story that we hear quite often.
0:50:06 > 0:50:11With interest rates now extremely low, I reckon that may continue.
0:50:11 > 0:50:15Sounds like Robin and Susan have put their redundancy money to good use.
0:50:15 > 0:50:21They say good things happen and there is life the other side of work.
0:50:21 > 0:50:26- I'm quite happy with the situation, yes.- I do miss my job,
0:50:26 > 0:50:30yes, I do. But let's face it, chill out!
0:50:30 > 0:50:32Enjoy old age!
0:50:38 > 0:50:43Time to return to Paignton on the English Riviera in Devon.
0:50:43 > 0:50:49Earlier in the programme, we saw James pay £115,000 for this detached property
0:50:49 > 0:50:51in need of some repair.
0:50:51 > 0:50:54Former managing director of a maintenance company
0:50:54 > 0:50:58specialising in fire- and flood-damaged homes he was well-qualified.
0:50:58 > 0:51:02He was teaming up with one of his former employees, Martin,
0:51:02 > 0:51:06a highly experienced builder, and they were both going to tackle the work.
0:51:07 > 0:51:13Well, six months had passed when we met up again to check on the refurbishment.
0:51:20 > 0:51:25Starting round the back, the derelict lean-to has been transformed.
0:51:25 > 0:51:32Which means that inside, the muddled layout which led to the lounge is now a modern, open-plan space.
0:51:36 > 0:51:40The neutral colours continue upstairs on the landing
0:51:40 > 0:51:42and in the three bedrooms.
0:51:42 > 0:51:45They've chosen a colour scheme that really enhances the place,
0:51:45 > 0:51:48making it look lighter and more spacious.
0:51:48 > 0:51:52But I'm sure the rooms feel bigger too. James explains why.
0:51:52 > 0:51:56There had been layer upon layer of cladding and timber batoning
0:51:56 > 0:52:01where the previous owner had hidden very poorly plastered walls.
0:52:01 > 0:52:05So it was a complete strip-out. We were back to brickwork throughout.
0:52:05 > 0:52:10The rooms were increasing in size by ten to 15%, just because they'd been cladded over.
0:52:10 > 0:52:13We've re-levelled the floor in the lounge
0:52:13 > 0:52:17cos that had a bad lean on it, and replastered, and new ceilings.
0:52:17 > 0:52:21New ceilings and replastered walls throughout the entire property.
0:52:22 > 0:52:23It didn't stop there,
0:52:23 > 0:52:30because the 1930s house has been rewired. The boiler was fairly new, so that remained.
0:52:30 > 0:52:34But plumbing was the main requirement upstairs.
0:52:34 > 0:52:40Obviously, when we bought the house, there was a separate W.C. with a wall and everything.
0:52:40 > 0:52:44So we knocked that out and turned it into a nice family-sized bathroom.
0:52:44 > 0:52:49And also we've incorporated a full walk-in quadrant shower,
0:52:49 > 0:52:51which has enhanced the bathroom.
0:52:52 > 0:52:56You can now take your pick. A long soak or a quick shower.
0:52:58 > 0:53:01OK, this is the kitchen and utility room.
0:53:01 > 0:53:05The kitchen was an extension that had been put on by the previous owner.
0:53:05 > 0:53:10The pitch of the roof was adjusted and new timber framework was installed.
0:53:10 > 0:53:15Then an artificial slate roof with roof lights to bring in a lot more natural light.
0:53:15 > 0:53:18That's continued into the utility room as well.
0:53:20 > 0:53:25Martin is a qualified plasterer and master of numerous building skills.
0:53:25 > 0:53:27But James's background was in management.
0:53:27 > 0:53:31Although he was determined to do the hard graft, he recognised his limitations.
0:53:31 > 0:53:36There was certainly a lot of the work that I didn't have the skills to do.
0:53:36 > 0:53:39Martin's been very patient with me.
0:53:39 > 0:53:44So I've been doing things that I could do and learning a lot of skills I didn't have before.
0:53:44 > 0:53:47He's been excellent all the way through. He really has.
0:53:47 > 0:53:52He's not frightened to get his hands dirty, pick up the tools and have a go at it.
0:53:52 > 0:53:55I mean, he's been spot on, haven't you?
0:53:55 > 0:53:57I've tried!
0:53:57 > 0:54:01New skills are very satisfying. But what about the cost?
0:54:01 > 0:54:05With all that cladding to remove and the time that took,
0:54:05 > 0:54:08did they manage to keep to their budget of £14,000?
0:54:08 > 0:54:14Budget-wise, we've gone a little over by about £1,000 or so. Not much more than that.
0:54:14 > 0:54:17Martin and James's first project is almost finished.
0:54:17 > 0:54:22Although their informal offer for that subsiding property was rejected,
0:54:22 > 0:54:24they have bought another property to work on.
0:54:27 > 0:54:31Time to hear how two estate agents will rate this house.
0:54:31 > 0:54:36Will they approve of James' and Martin's first development project?
0:54:36 > 0:54:39The layout is very good. It flows very well.
0:54:39 > 0:54:43You have lounge and dining room with a kitchen to the utility
0:54:43 > 0:54:46and upstairs, three bedrooms and larger than average bathroom.
0:54:46 > 0:54:49What a transformation from the first time I came.
0:54:49 > 0:54:51It's refurbished to a high standard.
0:54:51 > 0:54:56The incorporation of the kitchen and utility area works really well
0:54:56 > 0:54:59and the bathroom has a shower cubicle as well. A wonderful job.
0:54:59 > 0:55:03The best selling feature of the house is the size of the rooms,
0:55:03 > 0:55:06it's decorated very neutral, making it light and airy.
0:55:06 > 0:55:10They've used the right colours and good quality fitments.
0:55:10 > 0:55:13The finish of the work is to a very good standard.
0:55:13 > 0:55:16The plan for this house is to sell,
0:55:16 > 0:55:21but it could be useful for James and Martin to hear the rental potential.
0:55:21 > 0:55:26The property should return in the region of £750 per calendar month.
0:55:26 > 0:55:29The rental value is in the region of £800 per calendar month.
0:55:29 > 0:55:34What do they think of that income opportunity? Could it tempt them to hold on to the place?
0:55:34 > 0:55:38We haven't really discussed it, have we?
0:55:38 > 0:55:41The intention was to buy and sell.
0:55:41 > 0:55:45- For our first one. That might be later down the road.- Yeah.
0:55:45 > 0:55:49Potentially, that is a good rental. Very good.
0:55:49 > 0:55:54Nice to know. Are they looking at any profit here if they do sell?
0:55:54 > 0:55:58They paid £115,000 for the house at auction
0:55:58 > 0:56:01and have spent about £15,000 on refurbishing it.
0:56:01 > 0:56:05So, do the experts value it above 130,000?
0:56:05 > 0:56:07If I were to put this property on the market,
0:56:07 > 0:56:11it would be somewhere in the region of £175,000.
0:56:11 > 0:56:14I would value the property at £180,000.
0:56:14 > 0:56:17That range of valuations would generate a gross profit
0:56:17 > 0:56:22of 45 to £50,000 before the usual selling expenses.
0:56:22 > 0:56:24So, are they happy with that?
0:56:24 > 0:56:28Yeah, that's not too bad. We know the market is difficult just now.
0:56:28 > 0:56:32It's still quite a decent profit for what we've done.
0:56:32 > 0:56:35I feel really satisfied with the work that me and James have put in.
0:56:35 > 0:56:37We look forward to our next one!
0:56:44 > 0:56:47That's it for thrills and spills from the auction room.
0:56:47 > 0:56:50Join us next time for more Homes Under The Hammer.
0:56:50 > 0:56:52- See you!- Goodbye!
0:57:13 > 0:57:16Subtitles by Red Bee Media Ltd