0:00:02 > 0:00:04With the ups and downs of the property market,
0:00:04 > 0:00:06you need to trust your instincts when buying.
0:00:06 > 0:00:09And nowhere is this more true than in the auction room.
0:00:09 > 0:00:12So join us now as we try to take the lottery out of property
0:00:12 > 0:00:14under the hammer.
0:00:40 > 0:00:43Buying at auction doesn't have to be a scary experience.
0:00:43 > 0:00:48If you do your research and you stick to your limit, you can bid with confidence.
0:00:48 > 0:00:51We'll be meeting some buyers today. How did they get on?
0:00:51 > 0:00:54Did they bag a bargain or get more than they bargained for?
0:00:54 > 0:00:56Let's take a look at what they bought.
0:00:57 > 0:01:01I'm in Devon and trying to get an angle on this terraced property.
0:01:01 > 0:01:06Those stairs definitely don't look right at all.
0:01:07 > 0:01:10We revisit this cracking flat in London.
0:01:11 > 0:01:16Straight in the front door and already, that is not looking good.
0:01:17 > 0:01:20And I'm North Lanarkshire, near Airdrie,
0:01:20 > 0:01:22to see this big bungalow.
0:01:22 > 0:01:25I just can't get my head round this place.
0:01:25 > 0:01:27It's almost like it's too big for its own good.
0:01:30 > 0:01:32All these properties were sold at auction.
0:01:32 > 0:01:37We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:48 > 0:01:53I'm in Plymouth, a city widely known for its maritime history,
0:01:53 > 0:01:56from early explorers such as Sir Francis Drake
0:01:56 > 0:02:00through centuries of worldwide trade and as a base for the Royal Navy.
0:02:01 > 0:02:06The city's sea-related industry may have declined over the past 50 years,
0:02:06 > 0:02:10but it continues to be proud of its seafaring traditions.
0:02:14 > 0:02:17The house I'm here to see is not far from the docks
0:02:17 > 0:02:19and a short walk from Plymouth city centre.
0:02:19 > 0:02:23At a guide price of 65,000 quid, a three-bed, mid-terrace,
0:02:23 > 0:02:24let's take a look.
0:02:28 > 0:02:33These tightly packed terraces were built around the turn of the last century.
0:02:34 > 0:02:35Due to the naval base,
0:02:35 > 0:02:38the city suffered greatly from Luftwaffe bombing raids
0:02:38 > 0:02:40during World War Two.
0:02:40 > 0:02:42Let's take a look inside.
0:02:45 > 0:02:48Well, it's a fairly standard layout, as to be expected.
0:02:48 > 0:02:50Living room there at the front.
0:02:50 > 0:02:54Clearly, total refurbishment required.
0:02:54 > 0:02:57Rear living room there and then...
0:02:59 > 0:03:02Those stairs...
0:03:02 > 0:03:03definitely don't look right.
0:03:03 > 0:03:06It's like they're completely on an angle.
0:03:07 > 0:03:11You know those fairground rides where you can go on the attraction
0:03:11 > 0:03:14and everything sort of moves around and they have wonky stairs?
0:03:14 > 0:03:16It's almost like... Well, it's like that.
0:03:17 > 0:03:19Which you don't really want.
0:03:19 > 0:03:23# Welcome to the house of fun Now I've come of age
0:03:23 > 0:03:26# Welcome to the house of fun. #
0:03:26 > 0:03:31That wonky staircase has all the tell-tale signs of subsidence
0:03:31 > 0:03:34and something tells me there are more surprises in store
0:03:34 > 0:03:36on the first floor.
0:03:37 > 0:03:41Back downstairs, however, the rear reception room, like the front one,
0:03:41 > 0:03:42is a good size
0:03:42 > 0:03:44but there is no central heating.
0:03:44 > 0:03:46Now on to the hub of every home.
0:03:46 > 0:03:50The kitchen itself is not actually that bad.
0:03:50 > 0:03:52The choice of these light-coloured units
0:03:52 > 0:03:56really makes a dark space feel not as oppressive as it might.
0:03:56 > 0:04:00So that's pretty serviceable. You could leave that as it is.
0:04:00 > 0:04:05One thing that you definitely need to sort out, however, is this.
0:04:05 > 0:04:08It's the only bathroom and loo in the building,
0:04:08 > 0:04:09it's right at the back here,
0:04:09 > 0:04:13and as you can see, it is dingy, dark, horrible, yuck.
0:04:13 > 0:04:17And, yeah, this definitely needs work.
0:04:19 > 0:04:24Outside in the back garden, there's room to extend the house out and up,
0:04:24 > 0:04:27perhaps creating an upstairs bathroom.
0:04:27 > 0:04:32So the stairs make me seasick and the bathroom is far from shipshape
0:04:32 > 0:04:36but now it's time for the uncharted waters of upstairs.
0:04:38 > 0:04:41This property has three double bedrooms.
0:04:41 > 0:04:46The electrics need modernisation, however there is double glazing throughout.
0:04:46 > 0:04:51For all the severe slopes, I see no serious structural damage here.
0:04:51 > 0:04:57If the subsidence is historic and the ground around the foundations has stabilised,
0:04:57 > 0:04:59then the house shouldn't need underpinning.
0:04:59 > 0:05:03Let's hope so, as that can be extremely costly,
0:05:03 > 0:05:05disruptive and time consuming.
0:05:06 > 0:05:12Well, it's not just the doorframes and the stairs and the doors that are all skewwhiff,
0:05:12 > 0:05:19in fact most of the floors are also on a bit of a slope.
0:05:22 > 0:05:25The big question is, is it historical or not?
0:05:25 > 0:05:28I reckon it is, in which case it might not be a problem,
0:05:28 > 0:05:30if you like your house on a slope.
0:05:33 > 0:05:36I invited along the auctioneer who sold the property
0:05:36 > 0:05:38to give us his slant on it.
0:05:41 > 0:05:42It's slightly quirky.
0:05:42 > 0:05:45It's straight lines were adjusted by the German air force
0:05:45 > 0:05:47on a Tuesday night in 1943.
0:05:49 > 0:05:52But it's got a lot of character as a result.
0:05:52 > 0:05:57It's a bit wonky and some of the doorways, you look twice at them, and the stairs,
0:05:57 > 0:05:59but I think that's the charm of the place.
0:05:59 > 0:06:02'Mm. If the buyer were to move the bathroom upstairs,
0:06:02 > 0:06:04'it could reduce the number of bedrooms.
0:06:04 > 0:06:08'If this was done, what would the sell-on value be?'
0:06:08 > 0:06:11A two-bedroom version of the house with the bathroom upstairs,
0:06:11 > 0:06:17would probably be worth something in the region of £120,000.
0:06:17 > 0:06:21If you rebuilt the bathroom, kept it downstairs,
0:06:21 > 0:06:24put a lobby between the kitchen and it,
0:06:24 > 0:06:27you'd be pushing on towards £130,000
0:06:27 > 0:06:30but I don't think you'd quite get that.
0:06:30 > 0:06:32And rental income?
0:06:32 > 0:06:37Rental value as a two-bedroomed house with the bathroom upstairs
0:06:37 > 0:06:41would be in the region of £500 per calendar month
0:06:41 > 0:06:44and if you kept the bathroom at the back
0:06:44 > 0:06:46and had three bedrooms upstairs,
0:06:46 > 0:06:49you could tiptoe towards £550 per calendar month.
0:06:50 > 0:06:52So after doing the sums,
0:06:52 > 0:06:54it seems the new owner would be slightly better off
0:06:54 > 0:06:58keeping the three bedrooms and having a downstairs bathroom.
0:07:02 > 0:07:06Well, ideal if you're looking for a fairground ride
0:07:06 > 0:07:08rather than a property.
0:07:09 > 0:07:13Joking apart though, that staircase and the rest of it does need a bit of sorting out.
0:07:13 > 0:07:16Still, it was a good price and a good location,
0:07:16 > 0:07:19so who had the stomach for this one when it went to the auction?
0:07:22 > 0:07:24Who'll give me 65 to start me off?
0:07:24 > 0:07:2665 straight in. Nice and simple.
0:07:26 > 0:07:28Nobody want to start at 65 for the house?
0:07:28 > 0:07:3060, somewhere?
0:07:30 > 0:07:32Thank you, sir. He's away.
0:07:32 > 0:07:3660 on the right. That was close. I'll give a single if it'll help. 61.
0:07:36 > 0:07:3861. 62.
0:07:38 > 0:07:39At 62. 63.
0:07:40 > 0:07:4164.
0:07:41 > 0:07:4465, 66.
0:07:45 > 0:07:4866 I've got. He's in at 66. You can't go wrong. 66 I've got.
0:07:48 > 0:07:50At 66. At 66.
0:07:50 > 0:07:53At 66 for the first time, then.
0:07:53 > 0:07:55At 66 for the second time.
0:07:56 > 0:08:0066 and a half was just sat. Forgive me.
0:08:00 > 0:08:0366 and a half. 67. There's three of you, you see.
0:08:03 > 0:08:0667 and a half? 67 and a half. And sat is giving me 68.
0:08:06 > 0:08:1068 and a half, to be fair?
0:08:10 > 0:08:1370? Or... Thank you, sir. 70. There we go.
0:08:13 > 0:08:14At 70. At 70.
0:08:14 > 0:08:16At 70. Looking at the back wall now.
0:08:16 > 0:08:2170 and a half. 70 and a half. At 70 and a half.
0:08:21 > 0:08:2471. At 71. At 71.
0:08:24 > 0:08:26At 71.
0:08:26 > 0:08:28At 71, the first time. You're in, sir.
0:08:28 > 0:08:30At 71 second time.
0:08:31 > 0:08:34At 71 and out.
0:08:34 > 0:08:37The successful bidder was Andrew.
0:08:37 > 0:08:40If he wanted all the fun of the fair, he certainly has it,
0:08:40 > 0:08:45but is this a house of fun or a house of horror?
0:08:45 > 0:08:46MANIC LAUGHTER
0:08:47 > 0:08:52Andrew paid £71,000 for this property.
0:08:52 > 0:08:55He lives and works in London as a painter and decorator
0:08:55 > 0:08:59but he's originally from Plymouth, so knows the area well.
0:08:59 > 0:09:03- Good to meet you.- Good to meet you. - You've got yourself a wonky house.
0:09:03 > 0:09:05Yeah but it's not that bad.
0:09:05 > 0:09:07What did you think of it when you first saw it?
0:09:07 > 0:09:09It's what I was expecting.
0:09:09 > 0:09:12- You can see from the outside, it's pitching.- Right.
0:09:12 > 0:09:14But a bit more pitching inside.
0:09:14 > 0:09:16- Right. When did you first see it? - Inside?- Yeah.
0:09:16 > 0:09:20When I came in a minute ago. I seen it from the outside before.
0:09:20 > 0:09:24- But you hadn't seen inside?- No. - Until ten minutes ago?- Yes.
0:09:24 > 0:09:28- Wow. You seem remarkably cool and relaxed and...- It's manageable.
0:09:28 > 0:09:30It's not that bad.
0:09:31 > 0:09:33MARTIN CHUCKLES Right, yeah.
0:09:33 > 0:09:36Andrew is obviously not scared of a challenge
0:09:36 > 0:09:38and this house will certainly provide that.
0:09:38 > 0:09:42Attempting to straighten the slants will require major building work.
0:09:42 > 0:09:46Andrew will have to raise the floor level and drop the ceiling height.
0:09:48 > 0:09:51So what are you going to do about the wonkiness?
0:09:51 > 0:09:55- I'll leave some of it. It's... - It adds character, perhaps?- Yeah.
0:09:55 > 0:09:57I'm glad to see that you're so positive about it.
0:09:57 > 0:10:01It's a nice-sized place. There's nothing wrong with it being a bit wonky.
0:10:01 > 0:10:03No, I...
0:10:03 > 0:10:06- It's just a bit different. - Yeah, well.
0:10:06 > 0:10:09Depends. If you was as old as this, you'd be a bit wonky,
0:10:09 > 0:10:11so you've got to look at it that way.
0:10:11 > 0:10:13I like your attitude. Absolutely.
0:10:15 > 0:10:19Andrew has a positive attitude towards his new investment
0:10:19 > 0:10:21and has the skills for this renovation.
0:10:21 > 0:10:25He's a painter and decorator and also has building experience,
0:10:25 > 0:10:27plus a plumbing qualification.
0:10:27 > 0:10:31Friends and family in the building trade will be helping him, too.
0:10:34 > 0:10:36My brother, he'll be doing that back addition.
0:10:36 > 0:10:40That'll be knocked down, new bathroom and then go from there.
0:10:40 > 0:10:43Ceilings dropped, rewire, central heating -
0:10:43 > 0:10:45- it's all got to be done.- Right.
0:10:45 > 0:10:49- At least it's double glazed, most of it, except the back part.- OK.
0:10:49 > 0:10:50So it's not that bad.
0:10:50 > 0:10:53I love this guy's optimism!
0:10:53 > 0:10:56He's been living and working in London for 23 years
0:10:56 > 0:10:59but he'll stay with his brother in their home city of Plymouth
0:10:59 > 0:11:01while carrying out the work.
0:11:01 > 0:11:07- So how are you going to do this when you live in London?- If there's no work up there, I'll do this.
0:11:07 > 0:11:10- How much are you going to spend sorting it out?- Er...
0:11:10 > 0:11:13I reckon it's going to cost about 15 grand.
0:11:13 > 0:11:16So you've got a reasonable budget. How long will it take?
0:11:16 > 0:11:17Erm, about eight weeks.
0:11:17 > 0:11:21- Any idea how much you might get for it, rented?- I'll get 650 a month.
0:11:21 > 0:11:23Oh, right, OK. That's a good return, then.
0:11:23 > 0:11:27- Good luck sorting it out and I look forward to seeing how you get on.- Thank you.
0:11:33 > 0:11:37Well, Andrew seems remarkably unfazed by the state of the house,
0:11:37 > 0:11:40given that he's literally just seen it for the first time.
0:11:40 > 0:11:44Just as well, really, because he has bought it, so it is too late.
0:11:44 > 0:11:47Still, he's got 15 grand to sort it out.
0:11:47 > 0:11:50Will it be enough? Will he get bored with the quirkiness?
0:11:50 > 0:11:53You can find out later in the show.
0:11:56 > 0:11:59It was back in the year 2007
0:11:59 > 0:12:02when I took a stroll through an up and coming area of London.
0:12:04 > 0:12:06According to Land Registry figures,
0:12:06 > 0:12:12the average property price in Camden is £472,000.
0:12:12 > 0:12:15The lot up for auction today isn't anywhere near that figure.
0:12:15 > 0:12:20In fact, it's for a very modest £175,000.
0:12:20 > 0:12:22Now, that's got you interested, hasn't it?
0:12:22 > 0:12:24Especially when you look around
0:12:24 > 0:12:26and you see all these wonderful, grand houses
0:12:26 > 0:12:28in a lovely street like this.
0:12:28 > 0:12:31Let's have a look at the property.
0:12:31 > 0:12:34This property sits in a lovely, leafy part of Camden
0:12:34 > 0:12:38and feels a million miles away from the famous weekend market and bars there.
0:12:38 > 0:12:42In fact, you're just a short walk from all that Camden offers.
0:12:43 > 0:12:48Straight in the front door and already, that is not looking good.
0:12:49 > 0:12:51This crack doesn't bode well.
0:12:51 > 0:12:54Communal areas can tell you a lot about a property
0:12:54 > 0:12:56and I've noticed a big crack on the outside wall.
0:13:00 > 0:13:02Oh, well. Onwards and upwards.
0:13:03 > 0:13:06Now, I've conquered all those stairs,
0:13:06 > 0:13:08let's take a little look around this flat.
0:13:08 > 0:13:10Now, what's in here?
0:13:10 > 0:13:14The bathroom is looking like the most uninviting place to wash, let me tell you.
0:13:14 > 0:13:18There's a big ladder hanging from the ceiling up there
0:13:18 > 0:13:20and in here, you've got the reception room.
0:13:20 > 0:13:22Now, it's got sloping floors
0:13:22 > 0:13:25but it does have a really nice feature fireplace, saying that.
0:13:25 > 0:13:26The kitchen is at the back there
0:13:26 > 0:13:29and in here is the reception room.
0:13:29 > 0:13:31It faces the front of the property.
0:13:31 > 0:13:34Sadly, there's not a period Victorian fireplace in here,
0:13:34 > 0:13:37just this old, grey, tiled one.
0:13:37 > 0:13:40It has got lovely old original sash windows, though.
0:13:40 > 0:13:43Once refurbished, they would look really nice.
0:13:43 > 0:13:46But everywhere I'm looking, there's cracks.
0:13:46 > 0:13:49The skirting board down here is coming away.
0:13:49 > 0:13:50Look.
0:13:50 > 0:13:54And up here, there's a half-inch gap in the wall. Look at that.
0:13:54 > 0:13:57It's as though this house is falling down.
0:13:57 > 0:13:59I need to investigate further.
0:14:00 > 0:14:04There are cracks in every corner of this flat, in every room.
0:14:05 > 0:14:09- # Shaking all over... # - The kitchen, the rear reception room,
0:14:09 > 0:14:11the bathroom
0:14:11 > 0:14:15and in here, as I suspected - look, more cracks.
0:14:15 > 0:14:19I'm just wondering if the root of this problem lies out there.
0:14:19 > 0:14:2570% of all subsidence cases are caused by thirsty tree roots
0:14:25 > 0:14:30and so I always make a point of seeing how close they are to a property.
0:14:30 > 0:14:32Now, a rough rule of thumb
0:14:32 > 0:14:37is that a 15-foot tree should be at least 15 feet away from the house.
0:14:37 > 0:14:40That said, it's not actually a precise science.
0:14:40 > 0:14:44The best thing in this case would be to seek out advice.
0:14:44 > 0:14:49Whoever buys this, will need a full and detailed surveyor's report.
0:14:49 > 0:14:50Rush into this purchase
0:14:50 > 0:14:54and you could find yourself with a hefty underpinning bill.
0:14:55 > 0:14:57That's an expensive exercise.
0:14:57 > 0:14:59The cost of underpinning an average house
0:14:59 > 0:15:02can cost up to £12,000,
0:15:02 > 0:15:06so always get professional advice if you're not sure about a crack.
0:15:10 > 0:15:13It seems we all want more space to live.
0:15:13 > 0:15:16If you can't find the additional room you need
0:15:16 > 0:15:18by reconfiguring the current layout,
0:15:18 > 0:15:22the next most cost-effective option is to convert the loft.
0:15:22 > 0:15:27Now, loft conversions vary in cost according to size and complexity
0:15:27 > 0:15:30but as a rough guide, having your loft converted or extended
0:15:30 > 0:15:35would usually cost between £20,000 to £70,000.
0:15:35 > 0:15:38That initial layout will certainly add more value to your property,
0:15:38 > 0:15:40so it's something to consider here.
0:15:41 > 0:15:45One thing's for sure - you've certainly got the space
0:15:45 > 0:15:47but of course, you will need permission.
0:15:47 > 0:15:50But another setback for the flat is the lease.
0:15:50 > 0:15:52It's only 56 years, which is short,
0:15:52 > 0:15:55and could certainly put off a lot of buyers.
0:15:57 > 0:16:03But the £175,000 guide price reflected that this flat was far from perfect
0:16:03 > 0:16:06and would need a lot of work to bring it up to scratch.
0:16:06 > 0:16:09This lot isn't for the faint-hearted.
0:16:09 > 0:16:10There's a lot to contend with.
0:16:10 > 0:16:12There's a short lease
0:16:12 > 0:16:15and there are serious cracks that need addressing.
0:16:15 > 0:16:17But I do really love the location
0:16:17 > 0:16:21and if you're looking for a buy to let, you'll never be short on tenants.
0:16:21 > 0:16:23Let's go to the auction.
0:16:24 > 0:16:27All right, lot 8. Who'd like to kick off on this one?
0:16:27 > 0:16:30I don't know, a flat in Camden. £200,000?
0:16:30 > 0:16:32It must be worth 200 all day long.
0:16:32 > 0:16:34If not, you tell me. Where do you wish to start?
0:16:35 > 0:16:37170, 170.
0:16:37 > 0:16:39Yes? 170.
0:16:39 > 0:16:40How much?
0:16:41 > 0:16:44171. 175, yes?
0:16:44 > 0:16:47176? 176.
0:16:47 > 0:16:49180. 180.
0:16:49 > 0:16:52185. 190.
0:16:52 > 0:16:54191.
0:16:55 > 0:16:57192?
0:16:58 > 0:17:00191, sitting down.
0:17:00 > 0:17:04192. 193, madam, at the back. New spot.
0:17:04 > 0:17:06194, 195.
0:17:08 > 0:17:10200. 205, madam?
0:17:11 > 0:17:13210?
0:17:13 > 0:17:14211.
0:17:14 > 0:17:16212?
0:17:16 > 0:17:20212. Right at the back. 213.
0:17:20 > 0:17:23214, madam? 215.
0:17:23 > 0:17:26220. 225.
0:17:27 > 0:17:29230. 231.
0:17:30 > 0:17:32232. 233.
0:17:33 > 0:17:35234.
0:17:35 > 0:17:37234. 235.
0:17:38 > 0:17:42236? 235 at the back.
0:17:42 > 0:17:44First time, second time
0:17:44 > 0:17:45third and last time.
0:17:45 > 0:17:46Have you all...?
0:17:46 > 0:17:48236.
0:17:48 > 0:17:50237? Nearly.
0:17:50 > 0:17:52238?
0:17:52 > 0:17:54Are you sure? 237.
0:17:54 > 0:17:59First time, second time, third and last time. Have you all done?
0:17:59 > 0:18:02Sold. 237. Well done, madam. You got there.
0:18:03 > 0:18:08That successful final bid of 237,000 was made by Kate,
0:18:08 > 0:18:11who's an editor of feature films.
0:18:11 > 0:18:14Along with her husband Peter, a television producer,
0:18:14 > 0:18:17this creative couple have a job on their hands
0:18:17 > 0:18:21to make this flat a blockbuster rather than a disaster movie.
0:18:23 > 0:18:26- So had you viewed this property prior to auction?- Oh, yes.
0:18:26 > 0:18:30- And you hadn't, Peter? - I'd not seen it till today.
0:18:30 > 0:18:33So how were you describing this to your husband?
0:18:33 > 0:18:35Er, well, I...
0:18:36 > 0:18:38tried to leave out some of the cracks.
0:18:40 > 0:18:42Although Peter wasn't at the auction
0:18:42 > 0:18:45and hadn't seen the house until today,
0:18:45 > 0:18:47he's very excited by the legal pack.
0:18:47 > 0:18:50He has studied it as thoroughly as one of his scripts.
0:18:51 > 0:18:55The fantastic thing about auctions is you do get this wonderful pack
0:18:55 > 0:19:00and in this wonderful pack, amongst stuff about the lease and bits and bobs,
0:19:00 > 0:19:04was a huge great thick survey somebody had had done,
0:19:04 > 0:19:06I think it was the outgoing person,
0:19:06 > 0:19:10so we could see there's a solution, there's pages of solutions.
0:19:10 > 0:19:12Kate, why do you think it was a risk worth taking?
0:19:12 > 0:19:17Well, really because it's in Camden. I mean, it's really a very good area.
0:19:17 > 0:19:23And if we just solve some of the problems, the flat will be very valuable.
0:19:23 > 0:19:25It's a house that's divided into flats,
0:19:25 > 0:19:29so it's in the interests of all the people to fix structural stuff.
0:19:29 > 0:19:31It has to get fixed somehow.
0:19:31 > 0:19:34What's your budget for the work you need to do here?
0:19:34 > 0:19:36- Well...- Cracks aside.
0:19:37 > 0:19:41Well, I think it'll be about 20,000, hopefully less than that.
0:19:41 > 0:19:46But me and the chap underneath are going to want to move quite quickly,
0:19:46 > 0:19:52which is why we're prepared to put our own money in and sort it out afterwards.
0:19:52 > 0:19:55If the cracks affect the whole property,
0:19:55 > 0:19:57then the costs could be very high
0:19:57 > 0:20:00and they're not even sure what's causing them.
0:20:00 > 0:20:05# You don't know what's going on... #
0:20:05 > 0:20:07Maybe the clues lie in the photographs
0:20:07 > 0:20:09that Peter has studied from the legal pack.
0:20:09 > 0:20:12His knowledge of the area goes back many years.
0:20:12 > 0:20:17I think it's really interesting that you lived in this area in the '60s.
0:20:17 > 0:20:18How has it changed, do you think?
0:20:18 > 0:20:20Well, yes, I was a student
0:20:20 > 0:20:23and I lived in a bedsit at the top of a house
0:20:23 > 0:20:25further down the hill.
0:20:25 > 0:20:30So it's quite amusing to be in a place here that, curiously, hasn't changed much.
0:20:30 > 0:20:35This is very much like the crummy bedsit I was living in in the '60s.
0:20:37 > 0:20:42For the last few years, Kate has been developing properties in between her feature films
0:20:42 > 0:20:46and has nearly finished a refurbishment of another place in Tottenham.
0:20:46 > 0:20:49Peter, do you share Kate's love and passion of property?
0:20:49 > 0:20:51I suppose in a different way.
0:20:51 > 0:20:55She's the speculator and the risk-taker.
0:20:55 > 0:20:59I'm the boring, hang on a minute, what about this, read the small print...
0:20:59 > 0:21:03What we both enjoy is taking really clapped-out,
0:21:03 > 0:21:06useless, rubbish properties
0:21:06 > 0:21:08and putting them back into circulation
0:21:08 > 0:21:10so people can actually live in them.
0:21:10 > 0:21:13OK, we make a bit of money and we sell it and we move on
0:21:13 > 0:21:16but this place is uninhabitable at the minute
0:21:16 > 0:21:20and one hopes that in a few months' time somebody will be living in it.
0:21:20 > 0:21:23Well, that was in October 2007.
0:21:23 > 0:21:26When we first went back one year later,
0:21:26 > 0:21:29it was still a long way from anyone wanting to live there.
0:21:29 > 0:21:31Serious structural work was underway
0:21:31 > 0:21:33to rectify the cracks on the whole building
0:21:33 > 0:21:36and the flat itself was in a bit of a state.
0:21:36 > 0:21:39Kate was planning a complete layout change,
0:21:39 > 0:21:41including building into the loft space
0:21:41 > 0:21:44but the light at the end of the tunnel still seemed a long way off.
0:21:44 > 0:21:47# Lights go out
0:21:47 > 0:21:51# Walls come tumbling down... #
0:21:51 > 0:21:55I'm sure my vision will be realised in six months because it's got to be.
0:21:55 > 0:21:58It's got to go forward. We can't leave it like this, can we?
0:21:58 > 0:22:00It's a wreck!
0:22:01 > 0:22:03It certainly was a wreck
0:22:03 > 0:22:06but join us later in the show to see how it's finally gone
0:22:06 > 0:22:09from disaster zone to desirable dwelling.
0:22:09 > 0:22:13# ..and systems fall Cos unity is powerful... #
0:22:16 > 0:22:20Coming up, I'm excited about this beat-up and broken down bungalow
0:22:20 > 0:22:21in North Lanarkshire.
0:22:21 > 0:22:24What does it cry out to me? Building plot.
0:22:24 > 0:22:26Now it's getting interesting.
0:22:27 > 0:22:29We revisit this renovation in Camden
0:22:29 > 0:22:32to find out if it all ended in tears.
0:22:32 > 0:22:36Nice to know that if you stick at it, usually there's a happy ending.
0:22:37 > 0:22:39But first, we're back in Plymouth
0:22:39 > 0:22:42to hear what lessons Andrew's learned about buying at auction.
0:22:42 > 0:22:46Have a look at it first. As simple as that.
0:22:50 > 0:22:53Let's return to the south Devon coast.
0:22:55 > 0:22:59And this quirky little terrace in Plymouth.
0:22:59 > 0:23:02# Welcome to the house of fun Now I've come of age
0:23:02 > 0:23:05# Welcome to the house of fun. #
0:23:05 > 0:23:11The house was purchased for £71,000 by painter and decorator Andrew,
0:23:11 > 0:23:13who got a bit of a surprise when he first entered.
0:23:14 > 0:23:19- When did you first see it?- Inside? - Yeah.- Literally a minute ago.
0:23:19 > 0:23:20It's not that bad.
0:23:22 > 0:23:25The property suffered from historic subsidence
0:23:25 > 0:23:27but Andrew had a positive attitude
0:23:27 > 0:23:31and was keen to meet the challenges of this house head on.
0:23:32 > 0:23:34There were two good-sized reception rooms...
0:23:36 > 0:23:39a kitchen and downstairs toilet and shower room,
0:23:39 > 0:23:42all positively pleading for a makeover.
0:23:43 > 0:23:46Upstairs, there were three bedrooms.
0:23:47 > 0:23:50Well, now we're back, four months later,
0:23:50 > 0:23:52to see if Andrew levelled out those leans
0:23:52 > 0:23:54and straightened up the slopes.
0:23:56 > 0:23:57# Fix me up
0:23:57 > 0:24:00# In the middle of the morning, evening
0:24:00 > 0:24:02# Oh, baby, fix me up
0:24:02 > 0:24:05# Ooh, I want my healing. #
0:24:05 > 0:24:09Well, yes, Andrew has lifted the floors and dropped the ceilings,
0:24:09 > 0:24:12creating strong straight lines.
0:24:12 > 0:24:16The result is an old property that looks like new.
0:24:20 > 0:24:21I've totally gutted it.
0:24:21 > 0:24:25Dropped the ceilings, obviously had to level the floors,
0:24:25 > 0:24:27hacked the walls off because there was damp,
0:24:27 > 0:24:29so I sorted all that out.
0:24:29 > 0:24:33Obviously, basically doing that and then putting it back together again.
0:24:33 > 0:24:36# Fix me up... #
0:24:37 > 0:24:40I'm quite happy with it because it's done properly.
0:24:40 > 0:24:43I've done it as if I'm going to live in it, which I'm not.
0:24:43 > 0:24:46The once tired and tatty reception rooms
0:24:46 > 0:24:50have been rejuvenated and now feel bright and cheery.
0:24:52 > 0:24:56In the entrance hall, Andrew used steel beams
0:24:56 > 0:24:58to correct the listing staircase.
0:24:59 > 0:25:03We've used steel supports, put directly under the stairs
0:25:03 > 0:25:05and another here to hold the landing.
0:25:05 > 0:25:07So we ripped out all the timbers
0:25:07 > 0:25:11and then forced the staircase to square it all off
0:25:11 > 0:25:13and then put new timbers in, levelled the floors
0:25:13 > 0:25:16and it's turned out all right.
0:25:16 > 0:25:18# Yo, baby, fix me up. #
0:25:18 > 0:25:23Andrew has certainly worked hard to achieve these outstanding results.
0:25:23 > 0:25:25I'm extremely impressed
0:25:25 > 0:25:28and can't wait to see how he's transformed this bathroom.
0:25:31 > 0:25:33# Yo, baby, fix me up. #
0:25:34 > 0:25:38Oh, well. I guess Andrew's been busy elsewhere.
0:25:38 > 0:25:42He's knocked down the old bathroom and is rebuilding it from scratch.
0:25:44 > 0:25:48No time for cat naps, there's the kitchen to finish as well.
0:25:49 > 0:25:54In fact, the kitchen's been gutted and is being completely refurbished.
0:25:55 > 0:25:57The kitchen will be done next week,
0:25:57 > 0:26:00so, like, say next week, into the week after,
0:26:00 > 0:26:05and then once the back's built up, we can install the bathroom
0:26:05 > 0:26:07and put a floor in and then that'll be done.
0:26:07 > 0:26:11Then decorating the outside, so we're looking at three or four weeks.
0:26:13 > 0:26:17Andrew is already five weeks over his eight-week schedule
0:26:17 > 0:26:20but he has also been working in London during that time.
0:26:23 > 0:26:27And I expect that with the amount of work undertaken
0:26:27 > 0:26:31he's spent more than his £15,000 budget.
0:26:31 > 0:26:33I've spent about 20,000
0:26:33 > 0:26:36and by the time it's finished it'll be about 30.
0:26:36 > 0:26:38So I just hope I get a return.
0:26:40 > 0:26:42By the time Andrew has finished,
0:26:42 > 0:26:46he expects to have spent a total of £101,000,
0:26:46 > 0:26:48buying and renovating the place.
0:26:55 > 0:26:58I invited along two local property experts
0:26:58 > 0:27:00to give us their opinion.
0:27:04 > 0:27:06I'm very impressed with the property.
0:27:06 > 0:27:09It's been done to a very high standard, with newly fitted carpets,
0:27:09 > 0:27:12and it will look fantastic when completed.
0:27:12 > 0:27:16My first thoughts are that it's brightened up, it's clean
0:27:16 > 0:27:20and the tilt has been taken out
0:27:20 > 0:27:23and he's made a nice job of levelling out the floors
0:27:23 > 0:27:25and a new modern covering.
0:27:27 > 0:27:31What would be the main attraction of this property to would-be buyers?
0:27:33 > 0:27:36The best selling point for this property is the size.
0:27:36 > 0:27:38You've got three good-sized double bedrooms,
0:27:38 > 0:27:41as well as two fantastic reception spaces downstairs.
0:27:41 > 0:27:44It's a very good size for a young family
0:27:44 > 0:27:47and it's in very close proximity to Devonport dockyard
0:27:47 > 0:27:49and will attract people in the forces.
0:27:50 > 0:27:53The property's going to appeal to people
0:27:53 > 0:27:55who would like a three-bedroomed house,
0:27:55 > 0:27:57can't really afford it
0:27:57 > 0:28:00but because the bathroom's downstairs,
0:28:00 > 0:28:04this three-bedroom house is about the price of a two-bedroom house.
0:28:06 > 0:28:09The layout is what you expect with this style of property.
0:28:09 > 0:28:12Some people will see a disadvantage with the bathroom being downstairs
0:28:12 > 0:28:17but the majority of people expect that with this style of property.
0:28:18 > 0:28:22Once renovated, what sort of rental income could this place generate?
0:28:24 > 0:28:29When completed, I would value the property for £575 per calendar month.
0:28:29 > 0:28:31Most people wanting to rent the property out
0:28:31 > 0:28:35would pay £525 per calendar month because the bathroom's downstairs.
0:28:35 > 0:28:37If it didn't bother them,
0:28:37 > 0:28:40they might just stretch to £550 per calendar month.
0:28:40 > 0:28:45Those figures would give Andrew an annual yield of between 5% and 7%
0:28:45 > 0:28:50but he believes that if he let the house out, he could earn more.
0:28:52 > 0:28:55That's the going if you was doing it through an agent
0:28:55 > 0:28:58but if I'd done it, I would have done it through the council
0:28:58 > 0:29:00and you get 640 to 650 a month at the moment.
0:29:00 > 0:29:04Letting out the house through the council could be a good plan
0:29:04 > 0:29:08but Andrew wants to finish the work and put it back on the market.
0:29:08 > 0:29:12When finished, he will have spent a total of £101,000,
0:29:12 > 0:29:15so what would its value be if sold?
0:29:16 > 0:29:22When completed, I would value the property for £120,000.
0:29:22 > 0:29:23When the house is fully completed,
0:29:23 > 0:29:29it's value will be in the region of £120,000, maybe £125,000.
0:29:29 > 0:29:34That would give Andrew a pre-tax profit of between £19-24,000,
0:29:34 > 0:29:37minus the usual selling expenses, of course.
0:29:37 > 0:29:40So does he feel like the cat that got the cream
0:29:40 > 0:29:42or he is a sourpuss?
0:29:42 > 0:29:46Well, I'm happy. That's not that bad.
0:29:46 > 0:29:49It's expected, it's in the range.
0:29:50 > 0:29:52So, yeah, not bad at all.
0:29:54 > 0:29:58What lessons has he learnt from buying this property at auction?
0:29:58 > 0:30:00Have a look at it first.
0:30:01 > 0:30:04As simple as that. Have a good look at it first next time
0:30:04 > 0:30:06and know what you're buying.
0:30:10 > 0:30:14I'm in a small town called Plains in central Scotland,
0:30:14 > 0:30:17which lies on a main commuter route for Edinburgh and Glasgow.
0:30:18 > 0:30:23I'm here to see a five-bedroom, detached, chalet-style bungalow.
0:30:23 > 0:30:27That's it. The guide price of 110-120,000 quid.
0:30:27 > 0:30:29Good news that it's set back from the road
0:30:29 > 0:30:33but do those boarded-up windows mean there are set-backs to discover
0:30:33 > 0:30:34inside?
0:30:38 > 0:30:40There is a sweeping driveway
0:30:40 > 0:30:44but the bungalow has certainly not been well-maintained.
0:30:44 > 0:30:47# I'm a big mess
0:30:47 > 0:30:49# I'm in a really big mess. #
0:30:49 > 0:30:52So through the fairly impressive double-doored entrance
0:30:52 > 0:30:54into an equally impressive entrance hall.
0:30:54 > 0:30:57Not what you expect in a bungalow like this.
0:30:57 > 0:31:00Leading off it, two huge great rooms, living room on that side.
0:31:00 > 0:31:04I say living room but it's got a sink unit, which is strange -
0:31:04 > 0:31:06obviously converted into a bedroom at some point.
0:31:06 > 0:31:07Living room on that side.
0:31:07 > 0:31:11The corridor goes on to a rear area here,
0:31:11 > 0:31:13which is again, a huge amount of space.
0:31:13 > 0:31:15It's probably a waste of space.
0:31:15 > 0:31:17Stairs up to the dormer rooms there.
0:31:17 > 0:31:21Another bedroom or rear sitting room there.
0:31:21 > 0:31:23I mean, it's immense for a bungalow.
0:31:24 > 0:31:28# A big, big mess He was all mixed up in a big mess. #
0:31:28 > 0:31:31Along with the three main rooms, there's also a kitchen
0:31:31 > 0:31:33and a bathroom to the rear.
0:31:33 > 0:31:37This bungalow just seems to go on and on - it's huge!
0:31:40 > 0:31:44Well, upstairs, this expansive bungalow just continues.
0:31:44 > 0:31:47Three bedrooms. You've got a bathroom with a loo there.
0:31:47 > 0:31:50I mean, it's just extraordinary.
0:31:50 > 0:31:53A bit strange in this room, one of the dormer bedrooms.
0:31:53 > 0:31:56This is a stud partition wall that's been put in
0:31:56 > 0:32:00but it just divides what was just one huge window.
0:32:00 > 0:32:02Not really ideal.
0:32:02 > 0:32:04But not as serious as this. Look at the floor here.
0:32:04 > 0:32:09Obviously, there's been some kind of a water penetration problem through the ceiling,
0:32:09 > 0:32:10probably a tile missing.
0:32:10 > 0:32:16It's come down into here and caused serious problems with the floor.
0:32:16 > 0:32:17That's not very good.
0:32:17 > 0:32:20That clearly needs to be sorted out.
0:32:20 > 0:32:27So all in all, I just can't quite get my head round this place.
0:32:27 > 0:32:31It's like... It's almost like it's too big for its own good.
0:32:32 > 0:32:33MUSIC: ROCK AND ROLL
0:32:46 > 0:32:50So, huge bungalow which probably means small garden, right?
0:32:51 > 0:32:54Wrong. It's absolutely massive.
0:32:54 > 0:32:56It stretches all the way back to that wall.
0:32:56 > 0:32:58What does it cry out to me? Building plot.
0:32:58 > 0:33:01You've got access at the side, a flat area of land
0:33:01 > 0:33:05and enough space to build something without affecting the bungalow.
0:33:05 > 0:33:06Now it's getting interesting.
0:33:08 > 0:33:13This bungalow has real development potential, despite being beat-up
0:33:13 > 0:33:14and broken down.
0:33:15 > 0:33:18It had a guide price of £110-£120,000.
0:33:18 > 0:33:21I asked a local estate agent for some background.
0:33:24 > 0:33:27In its previous life, it was used as a multi-occupancy
0:33:27 > 0:33:29for the residential sector,
0:33:29 > 0:33:31people who were coming out of care,
0:33:31 > 0:33:34the next stage to come into the community.
0:33:34 > 0:33:37That explains why there is a washbasin in every room.
0:33:37 > 0:33:40But how much work needs to be done
0:33:40 > 0:33:42to get this place back in peak condition?
0:33:42 > 0:33:46To bring the house up to a good standard, there's a bit of damp.
0:33:46 > 0:33:47There's leaks from the roof.
0:33:47 > 0:33:51The kitchen and the bathroom will require refitting
0:33:51 > 0:33:53and the heating system to be upgraded.
0:33:55 > 0:33:58What could it sell for?
0:33:58 > 0:34:01If you were using the place as a family home
0:34:01 > 0:34:03after the property had been renovated,
0:34:03 > 0:34:08the property would realise in the region of £210-220,000.
0:34:09 > 0:34:11What about rental income?
0:34:12 > 0:34:15It would achieve in the region of £800 per calendar month
0:34:15 > 0:34:16for rental.
0:34:17 > 0:34:20Well, it's not often I'm flummoxed by a property
0:34:20 > 0:34:23but I don't admitting that I am in this instance.
0:34:23 > 0:34:26What would you do with this place? I really don't know.
0:34:26 > 0:34:30Let's go back to some basics. It's a big property on a big plot of land,
0:34:30 > 0:34:33therefore it's got to be worth that guide price.
0:34:33 > 0:34:36Let's see who agreed with me when it went under the hammer.
0:34:37 > 0:34:39Bit of interest before the auction on this
0:34:39 > 0:34:42and I've got a proxy bid for someone who couldn't be here.
0:34:42 > 0:34:46I'm going to start the bidding with the proxy bidder at £100,000.
0:34:46 > 0:34:50What better place to start? I'm looking for just 101 in the room.
0:34:50 > 0:34:52£101,000?
0:34:52 > 0:34:56101, I've got a bid. 101 in front of me. 102. 103, then?
0:34:56 > 0:34:58103. It's with the proxy bidder.
0:34:58 > 0:35:01104. £104,000. 105?
0:35:01 > 0:35:02106? 106 it is.
0:35:02 > 0:35:04106. 107? Yes. 107,000.
0:35:04 > 0:35:06108, sir? 108.
0:35:06 > 0:35:09109? 110.
0:35:09 > 0:35:11111? 111 it is.
0:35:11 > 0:35:13112. £112,000.
0:35:14 > 0:35:17Are you out? You are.
0:35:17 > 0:35:19113, sir?
0:35:19 > 0:35:21113. Just you and me at the moment, sir. 113.
0:35:21 > 0:35:24114. 114. It's with the proxy bidder.
0:35:24 > 0:35:25Go 115?
0:35:27 > 0:35:30115,000. You'll be relieved, sir, the proxy bidder's out.
0:35:30 > 0:35:33It's your bid at £115,000.
0:35:33 > 0:35:37£115,000. Are we all done, then? At 115. I'm going to sell.
0:35:37 > 0:35:38At £115,000.
0:35:41 > 0:35:43Sold. 115. Congratulations, sir.
0:35:43 > 0:35:49The successful bid of 115,000 came from Rana and his wife Shabana.
0:35:51 > 0:35:55Rana, who owns three grocery shops, will be renovating the property,
0:35:55 > 0:35:58along with his brother-in-law, Sharaz.
0:36:00 > 0:36:04- Sharaz, Rana, lovely to meet you. Congratulations.- Thanks.- Thank you.
0:36:04 > 0:36:06Tell me why you wanted to buy this place.
0:36:06 > 0:36:09Well, we saw loads of potential in this premises.
0:36:09 > 0:36:11We saw it just prior to the auction
0:36:11 > 0:36:16and a fair amount of space, the rooms are quite large
0:36:16 > 0:36:19and, yeah, definitely.
0:36:19 > 0:36:23Quite a challenge but looking to go ahead and take up this challenge.
0:36:23 > 0:36:27- So what was it about the house that you liked?- The size of it.
0:36:27 > 0:36:30As I say, it's potentially got five bedrooms.
0:36:30 > 0:36:35The amount of land that comes with it, there's space for a number of vehicles at the back.
0:36:35 > 0:36:37It's a fair distance away from the main road,
0:36:37 > 0:36:41so that was certainly something that we were quite interested in.
0:36:41 > 0:36:44Rana, what do you do when you're not doing this?
0:36:44 > 0:36:46I am a shop-keeper.
0:36:46 > 0:36:49- You like this house? - I like the house.
0:36:49 > 0:36:55It's big... Big rooms and big grounds.
0:36:55 > 0:36:57So who were you at the auction with, Rana?
0:36:57 > 0:37:00- Me and my wife.- Uh-huh.
0:37:00 > 0:37:02And why isn't she here today?
0:37:02 > 0:37:05- My wife is pregnant. - Oh! Congratulations.
0:37:05 > 0:37:11Yes. We already have four children, baby girls.
0:37:11 > 0:37:14Oh, lovely. Fantastic.
0:37:14 > 0:37:16Yes.
0:37:17 > 0:37:21As Rana is working with his wife Shabana's brother, Sharaz,
0:37:21 > 0:37:24this renovation is a real family affair.
0:37:26 > 0:37:29Rana and Shabana already have four little girls.
0:37:29 > 0:37:32It's no wonder they were attracted to this spacious bungalow.
0:37:32 > 0:37:35But what do they plan to do with it once they've done it up?
0:37:35 > 0:37:37Will it be their new family home?
0:37:39 > 0:37:42I couldn't get my head around what to do with it.
0:37:42 > 0:37:46Are you keeping it as it is with these massive rooms?
0:37:46 > 0:37:49We will be more or less keeping it the way it is with these rooms.
0:37:49 > 0:37:54We actually have a few ideas and we were thinking along the lines of bed and breakfast,
0:37:54 > 0:37:56turning it into a bed and breakfast,
0:37:56 > 0:37:59do we want to rent it out, as in...
0:37:59 > 0:38:04certain rooms, rent out each room to lodgers individually.
0:38:04 > 0:38:07Er... But I think we've, you know...
0:38:07 > 0:38:10Once we've got the main work out of the way,
0:38:10 > 0:38:14then it's something that we can think harder about -
0:38:14 > 0:38:15what do we want to do with it?
0:38:16 > 0:38:19Undertaking a renovation on this scale
0:38:19 > 0:38:21without a clear idea of what it's going to be
0:38:21 > 0:38:23could be a massive folly.
0:38:24 > 0:38:26When I saw the plot of land at the back,
0:38:26 > 0:38:29I thought, maybe build another house there.
0:38:29 > 0:38:33That's something, depending on the budget, you know...
0:38:33 > 0:38:36We have got a certain amount of money put aside for it
0:38:36 > 0:38:39in terms of what we're going to use for development.
0:38:39 > 0:38:43I don't think it'll cover building another house at the back, Martin,
0:38:43 > 0:38:46but you never know - we'll see in future.
0:38:46 > 0:38:50What is the budget? How much money have you got to spend?
0:38:50 > 0:38:52Nearly £20,000.
0:38:52 > 0:38:54- £20,000.- £20,000.
0:38:54 > 0:38:56And how long do you think it will take?
0:38:56 > 0:39:01Nearly three, two months.
0:39:01 > 0:39:04- Two or three months? And you're doing a lot of the work?- Yes.
0:39:06 > 0:39:09- Do you enjoy that?- I do enjoy that.
0:39:10 > 0:39:11- I like it.- Good.
0:39:11 > 0:39:14And so how are you going to share the jobs between you?
0:39:14 > 0:39:18I'm going to do administration work in terms of contacting agencies,
0:39:18 > 0:39:21so I'm going to be project managing, in a sense.
0:39:21 > 0:39:26Rana's going to be doing the bulk of it, the heavy-duty stuff.
0:39:26 > 0:39:31- And when it comes to small detail, I think I'll be popping in.- Right.
0:39:31 > 0:39:35You leave him to a project and hopefully, within a few months...
0:39:35 > 0:39:37Well, most of the time, it gets done.
0:39:37 > 0:39:39He's the type of man that, yeah, leave him to it
0:39:39 > 0:39:41and he'll get it done, eventually.
0:39:41 > 0:39:43- Are you excited about it?- Absolutely.
0:39:43 > 0:39:47Life isn't life without challenges, so, you know, erm...
0:39:47 > 0:39:50Yeah, it's a challenge. It's quite a big challenge.
0:39:50 > 0:39:55It's something big we've taken on but I think we can tackle it.
0:39:55 > 0:39:58- Congratulations. Well done. - Thank you very much. - Good luck with it.
0:39:58 > 0:40:00- Thanks, Martin.- Thanks very much.
0:40:01 > 0:40:05Well, Sharaz and Rana have got themselves a big project here
0:40:05 > 0:40:07and I just hope that budget of 20 grand
0:40:07 > 0:40:10is going to be enough to sort it out.
0:40:10 > 0:40:14Are they maximising its potential? Well, I'm not so sure.
0:40:14 > 0:40:16But you can see how they get on later in the show.
0:40:21 > 0:40:25Well, time has flown since we last saw our plucky buyers.
0:40:25 > 0:40:27But have they been firing on all cylinders?
0:40:27 > 0:40:29Let's go back and find out.
0:40:29 > 0:40:30# Camden Town... #
0:40:30 > 0:40:33We've back to Camden in northwest London now,
0:40:33 > 0:40:35where in 2007, I first came across
0:40:35 > 0:40:38this cracking top-floor, one-bedroom flat.
0:40:38 > 0:40:42Part-time developer Kate and her husband Peter bought it
0:40:42 > 0:40:44for 237,000.
0:40:44 > 0:40:49Kate's a feature film editor, while Peter is a TV producer,
0:40:49 > 0:40:52so they were hoping to make a blockbuster out of this place.
0:40:52 > 0:40:56But the whole building had major structural issues,
0:40:56 > 0:40:59which weren't going to be solved easily.
0:41:01 > 0:41:03And when we returned a year later,
0:41:03 > 0:41:06it looked like Kate's latest showpiece
0:41:06 > 0:41:08hadn't made it to its premiere.
0:41:08 > 0:41:10Apart from the scaffolding outside,
0:41:10 > 0:41:14the interior dividing walls and ceilings had also come down.
0:41:14 > 0:41:19But it seemed all that structural work had presented the couple with a great opportunity.
0:41:19 > 0:41:21It was riddled with cracks.
0:41:21 > 0:41:24in the front of the building and the back of the building
0:41:24 > 0:41:26and that was probably reflected in the price.
0:41:26 > 0:41:30It's a slightly cooperative venture because the other residents
0:41:30 > 0:41:33wanted that work to be done.
0:41:33 > 0:41:35So the deal was, we took advantage of the fact
0:41:35 > 0:41:40that it was going to have to have some sort of strapping and beams to hold the house together,
0:41:40 > 0:41:46to contribute a fair amount extra and go that extra step and have the loft conversion.
0:41:47 > 0:41:50Adding a loft extension is a good way to add value here
0:41:50 > 0:41:52but with a year of slow progress,
0:41:52 > 0:41:55Kate was determined to get something out of this place
0:41:55 > 0:41:56in the next six months.
0:41:56 > 0:41:59I'm sure my vision will be realised in six months
0:41:59 > 0:42:01because it's got to be.
0:42:01 > 0:42:04What can we do? It's got to go forward. We can't leave it like this.
0:42:04 > 0:42:06I mean, it's a wreck.
0:42:08 > 0:42:10Well, that was in 2008.
0:42:10 > 0:42:12One year and ten months later,
0:42:12 > 0:42:16we return to the welcome sight of all that scaffolding gone
0:42:16 > 0:42:19and inside...
0:42:22 > 0:42:28What a difference. From gutted shell to a contemporary London apartment.
0:42:28 > 0:42:31At the front, there's a spacious, open-plan living room and kitchen.
0:42:36 > 0:42:42And at the back, a spacious bedroom, complete with its own shower.
0:42:45 > 0:42:48It's been a long process getting here
0:42:48 > 0:42:50and we met up again with Kate and Peter
0:42:50 > 0:42:53to see how the project finally turned out.
0:42:53 > 0:42:56Peter talked us through one of the major changes.
0:42:56 > 0:43:01Well, this is where the disgusting little, tiny separate kitchen was.
0:43:01 > 0:43:03So we've had that wall gone.
0:43:03 > 0:43:07New kitchen put in, little island unit, which is nice.
0:43:07 > 0:43:10New ceiling, because of doing the loft, with the downlighters.
0:43:10 > 0:43:14Kept the original windows, refurbished them because they're nice.
0:43:14 > 0:43:17So we like it but the tenants do as well, so we're happy.
0:43:20 > 0:43:23In the hall, there's a communal toilet
0:43:23 > 0:43:27but more importantly, stairs leading up to that value-adding second bedroom.
0:43:32 > 0:43:34Again, it's a good size
0:43:34 > 0:43:37and also has the benefit of its own en-suite facilities.
0:43:41 > 0:43:46The entire flat is certainly very different from its original state.
0:43:46 > 0:43:48Although the work was necessary,
0:43:48 > 0:43:52it seems that it wasn't subsidence that was causing the cracks
0:43:52 > 0:43:53and peeling walls.
0:43:53 > 0:43:58It turned out it was the upper walls parting company with the side walls,
0:43:58 > 0:44:04which is possibly due to the effect of bombing, years and years ago.
0:44:04 > 0:44:07The consensus was that they weren't getting any worse,
0:44:07 > 0:44:10so the steel beams went in and clamped that all together
0:44:10 > 0:44:14and the walls stripped down and built back up again.
0:44:14 > 0:44:16That's all done and we got a certificate.
0:44:16 > 0:44:20That's what everybody in the house was really happy with.
0:44:20 > 0:44:23They couldn't sell their flats because nothing was mortgageable.
0:44:23 > 0:44:25- Or insurable.- Or insurable.
0:44:25 > 0:44:29But now that's fixed and it's all done,
0:44:29 > 0:44:31so the house is a better house than it was.
0:44:31 > 0:44:35So everyone in the property seems to have come out ahead.
0:44:35 > 0:44:39The other flat owners now have more desirable properties,
0:44:39 > 0:44:41due to the work started by Kate and Peter
0:44:41 > 0:44:46and the couple have finally got a top-notch two-bedroom flat.
0:44:46 > 0:44:50The only drawback now was that 56-year lease.
0:44:50 > 0:44:52But again, they had something up their sleeves.
0:44:52 > 0:44:54The lease appeared to be short
0:44:54 > 0:44:57but actually, we always had a share of the freehold.
0:44:57 > 0:45:01It meant that we could just go to solicitors
0:45:01 > 0:45:04and write ourselves a new lease, which we've done.
0:45:04 > 0:45:07- So all the flats... - All have new leases.
0:45:07 > 0:45:11- We've all signed ourselves 999-year leases...- Yes.
0:45:11 > 0:45:15- So...- So actually that was a false alarm because...
0:45:15 > 0:45:19And I knew that I had the freehold when I bought it,
0:45:19 > 0:45:21so it wasn't really a short lease.
0:45:21 > 0:45:26- But if people saw 25-year lease... - If people didn't investigate it...
0:45:26 > 0:45:29But we read the small print and thought, "We'll be all right."
0:45:29 > 0:45:33It's a great example of why it's so important to do your research
0:45:33 > 0:45:35when buying a property.
0:45:35 > 0:45:38The flat was finished ten months ago and is now tenanted
0:45:38 > 0:45:40and is proudly paying its way.
0:45:40 > 0:45:43So was the experience a happy one?
0:45:43 > 0:45:45I'm pretty happy with the rent, you know.
0:45:47 > 0:45:50Apart from that, I'm happy we actually got it finished.
0:45:50 > 0:45:53There were times, I think when you last came here,
0:45:53 > 0:45:57there were moments when it didn't... We weren't sure.
0:45:57 > 0:46:00No, I think I was always sure we'd finish it
0:46:00 > 0:46:02but I'm glad we have.
0:46:03 > 0:46:07A lot of that time was taken with getting planning permission for the loft extension,
0:46:07 > 0:46:11plus neighbours agreeing to the RSJ steel beams needed
0:46:11 > 0:46:13to hold the building together.
0:46:13 > 0:46:17You look back and think, "Crikey, this has taken two years."
0:46:17 > 0:46:20But a lot of time, nothing was happening.
0:46:20 > 0:46:22You buy it and all the excitement
0:46:22 > 0:46:25and then there'd be a substantial period of time
0:46:25 > 0:46:29when it lay dormant and you'd be drawing up plans and discussing it.
0:46:29 > 0:46:32Then there'd be a burst of activity when beams and things come in
0:46:32 > 0:46:34and then it all goes dormant.
0:46:34 > 0:46:37Before you know it, another six months has gone by.
0:46:37 > 0:46:41Then you get the fixes, plus we both have full-time jobs,
0:46:41 > 0:46:45- so time does slither by...- Yeah. - ..without you realising it.
0:46:45 > 0:46:48# Slip slidin' away
0:46:49 > 0:46:53# Slip -slidin' away
0:46:54 > 0:46:56# You know the nearer your destination
0:46:56 > 0:46:58# The more you're slip slidin' away. #
0:46:58 > 0:47:02But did Peter and Kate let the budget slip away from them?
0:47:02 > 0:47:06Remember, they bought the flat for 237,000
0:47:06 > 0:47:11and had estimated a shared cost for the structural repairs of 22 grand.
0:47:11 > 0:47:14Their budget for the renovation was £20,000,
0:47:14 > 0:47:19so they expected a total investment of 279,000.
0:47:19 > 0:47:23Their final bill was in fact 310 grand,
0:47:23 > 0:47:26making an overspend of 31,000.
0:47:26 > 0:47:30But when you consider the nature of the job and the loft extension,
0:47:30 > 0:47:32that wasn't bad going at all.
0:47:36 > 0:47:38But was it a good investment?
0:47:38 > 0:47:41We asked two local estate agents what they thought
0:47:41 > 0:47:43of Kate and Peter's work.
0:47:45 > 0:47:47It's a very nice flat. I like it a lot.
0:47:47 > 0:47:51It's over two floors, very spacious, been done to a high spec.
0:47:51 > 0:47:54It's a good location, very convenient for everything.
0:47:54 > 0:47:57All I've seen is pretty beautiful.
0:47:57 > 0:48:00I can see she choose the right colour in each room,
0:48:00 > 0:48:04which is really nice, makes the rooms spacious.
0:48:04 > 0:48:09She's done beautiful, amazing work and I have to admit that.
0:48:09 > 0:48:14The estate agents also felt that the loft conversion certainly upped the value of the flat.
0:48:14 > 0:48:18So after a total outlay of 310,000,
0:48:18 > 0:48:21what sort of resale value could it achieve?
0:48:22 > 0:48:27I would value this property for £350,000.
0:48:27 > 0:48:32I would value this property at, or put it on the market at, 365,000.
0:48:32 > 0:48:35Mm, yes, it's good, it's good,
0:48:35 > 0:48:39but I don't think I'll be selling it straightaway. I'll wait a while.
0:48:39 > 0:48:45So if they wanted to, they could make a pre-tax profit of £55,000.
0:48:45 > 0:48:48But for now, they've chosen the rental option.
0:48:48 > 0:48:51So are they getting the best out of this place?
0:48:52 > 0:48:57You would be able to rent this property for 1,600, at least, per month.
0:48:57 > 0:49:02For rentals for this flat, you're probably looking in the region of 1,500 to 1,600,
0:49:02 > 0:49:05maybe a little bit more, per calendar month.
0:49:05 > 0:49:07Erm, I'm getting more rent than that.
0:49:10 > 0:49:13- Slightly. - So we'll keep quiet about that.
0:49:13 > 0:49:15Slightly. A little bit more.
0:49:15 > 0:49:19In fact, they're getting £1,700 per calendar month,
0:49:19 > 0:49:21so no wonder they're smiling.
0:49:21 > 0:49:25I reckon that despite the slow progress with this project,
0:49:25 > 0:49:29Kate and Peter have ended up with a final cut that they're right to be delighted with.
0:49:31 > 0:49:36Nice to know that if you stick at it, there usually is a happy ending,
0:49:36 > 0:49:39if you're prepared to have the ups and downs in between.
0:49:39 > 0:49:43Yes. I wouldn't use money that you might need in a hurry.
0:49:49 > 0:49:52Remember this property in Plains, near Airdrie?
0:49:53 > 0:49:57The bungalow was big. Very big.
0:49:57 > 0:49:59It had two reception rooms,
0:49:59 > 0:50:03two bedrooms and a kitchen downstairs.
0:50:04 > 0:50:08Then there were three bedrooms in the dormer conversion,
0:50:08 > 0:50:11plus a huge garden.
0:50:11 > 0:50:15The bungalow was bought for £115,000 by Rana.
0:50:20 > 0:50:24He and his wife Shabana's new property was not the only reason
0:50:24 > 0:50:26they had smiles on their faces.
0:50:26 > 0:50:31- So who were you at the auction with, Rana?- Me and my wife.
0:50:31 > 0:50:36- And why isn't she here today? - My wife is pregnant. - Oh! Congratulations.
0:50:36 > 0:50:38I'm happy.
0:50:38 > 0:50:43Rana and his brother-in-law Sharaz hope to have the work complete
0:50:43 > 0:50:44in just three months,
0:50:44 > 0:50:48possibly to become a new family home for Rana and Shabana's new baby,
0:50:48 > 0:50:50plus their four daughters.
0:50:51 > 0:50:54# Baby, baby, baby, oh... #
0:50:54 > 0:50:55Four months later, we're back
0:50:55 > 0:51:00and the happy couple are the proud parents of baby boy Ses.
0:51:00 > 0:51:01Oh, my boy!
0:51:04 > 0:51:07Although the couple had toyed with different options for the property,
0:51:07 > 0:51:09with five children to look after,
0:51:09 > 0:51:13they have made up their mind what to do with this bungalow.
0:51:13 > 0:51:17# I thought you'd always be mine, mine
0:51:17 > 0:51:20# Baby, baby, baby, oh
0:51:20 > 0:51:23# Like baby, baby, baby, no
0:51:23 > 0:51:26# Like baby, baby, baby, oh... #
0:51:26 > 0:51:32We are having five children now, so we could do with the five bedrooms.
0:51:32 > 0:51:34The house was coming on quite nicely
0:51:34 > 0:51:38and I thought, "I think I'll just start living here myself."
0:51:41 > 0:51:45Initially, we thought about renting it out
0:51:45 > 0:51:48but then you think, a house this size,
0:51:48 > 0:51:50who's going to really rent it out?
0:51:50 > 0:51:54I mean, like, two-bedroom, three-bedroom houses go quickly
0:51:54 > 0:51:57but a five bedroom, it takes a bit longer.
0:51:57 > 0:52:02So we've just decided to live in it, really, to move in ourselves.
0:52:03 > 0:52:06The family plan to move in here in two weeks' time
0:52:06 > 0:52:10and Rana has had to work hard to ensure that it will be ready.
0:52:11 > 0:52:15When we did buy the house, the windows were boarded up,
0:52:15 > 0:52:16so we've had the windows put in.
0:52:16 > 0:52:20The boiler was missing, so we had a boiler fitted.
0:52:20 > 0:52:25Just a few of the ceilings need plastering.
0:52:25 > 0:52:28And there were lots of burst pipes.
0:52:28 > 0:52:30There were just leakages all over, really.
0:52:30 > 0:52:32There must have been at least a dozen.
0:52:32 > 0:52:34So that was a bit of a shock, you know.
0:52:34 > 0:52:37You fix one then there's something else
0:52:37 > 0:52:41from somewhere up in the ceiling, some more water leaking,
0:52:41 > 0:52:44and so we just had to get them fixed.
0:52:45 > 0:52:50Rana employed a team of tradesmen to carry out the majority of the building work,
0:52:50 > 0:52:53while he concentrated on the garden.
0:52:59 > 0:53:03Upstairs, Rana has kept the every-so-slightly odd room layout,
0:53:03 > 0:53:06with a partition wall cutting across the dormer window.
0:53:12 > 0:53:16What do Rana and Shabana's girls think of what's to be their new home?
0:53:16 > 0:53:18Yeah! Again.
0:53:18 > 0:53:22They like all the big rooms. There's a lot of space to run around in.
0:53:22 > 0:53:25They have their own bedrooms.
0:53:25 > 0:53:27At the moment, they need to share
0:53:27 > 0:53:30but now they can have their own rooms and they're really happy.
0:53:30 > 0:53:32They can't wait to move.
0:53:32 > 0:53:35# Oh, girls just wanna have fun
0:53:35 > 0:53:37# Girls, they wanna
0:53:37 > 0:53:40# Wanna have fun, girls
0:53:41 > 0:53:43# Wanna have... #
0:53:44 > 0:53:47How has Rana enjoyed the renovation?
0:53:47 > 0:53:53'He enjoys doing this sort of work, so he's had a great time.'
0:53:53 > 0:53:57Even now he looks at auction properties,
0:53:57 > 0:54:00if there's anything else that he likes,
0:54:00 > 0:54:03so he'll carry on.
0:54:04 > 0:54:07Keeping a family of five children fed and watered
0:54:07 > 0:54:11means that the kitchen is vitally important for Shabana.
0:54:14 > 0:54:18Well, the kitchen, we've just given it a good clean
0:54:18 > 0:54:23and we've added a dryer
0:54:23 > 0:54:26and we've also added a breakfast bar,
0:54:26 > 0:54:29so the children can just have their meals here
0:54:29 > 0:54:33and so it's easy to clean up, really,
0:54:33 > 0:54:36and leaves the rest of the house tidy.
0:54:37 > 0:54:41The work has taken slightly longer than Rana's three-month schedule
0:54:41 > 0:54:44but has he kept to his £20,000 budget?
0:54:44 > 0:54:49We sort of estimated it would cost about 20,000
0:54:49 > 0:54:51but we went over that slightly.
0:54:51 > 0:54:54About 23 I think we've ended up spending
0:54:54 > 0:54:57and probably, we'll still carry on spending a bit more
0:54:57 > 0:55:03because Rana likes expensive chandeliers and stuff.
0:55:03 > 0:55:07So far, the couple have spent a total of £138,000
0:55:07 > 0:55:11buying and renovating their new home.
0:55:13 > 0:55:17We asked two local property experts to give us their opinion.
0:55:18 > 0:55:21'The living space is superb downstairs.'
0:55:21 > 0:55:23All the rooms are nice and bright and airy
0:55:23 > 0:55:25and it offers good family accommodation.
0:55:25 > 0:55:29The reception rooms are good sizes, good family accommodation.
0:55:29 > 0:55:32It's what you'd be looking for in a house of this size and type.
0:55:36 > 0:55:39I have reservations about the bedrooms in the roof space.
0:55:39 > 0:55:41They're very unusual shapes.
0:55:41 > 0:55:43Putting beds into them will be difficult.
0:55:43 > 0:55:46They're really for single beds, not double beds.
0:55:46 > 0:55:48You get a good-sized bedroom downstairs
0:55:48 > 0:55:51but upstairs, there's something to be said about them.
0:55:51 > 0:55:52They could be better.
0:55:54 > 0:55:58Rana and Shabana have no plans to sell or rent out their home
0:55:58 > 0:56:00for the foreseeable future
0:56:00 > 0:56:02but what do the estate agents believe it could achieve
0:56:02 > 0:56:04if they were to put it on the market?
0:56:05 > 0:56:11In the current market, we would expect to achieve something in the region of £180-185,000.
0:56:11 > 0:56:14If I was to put the property up for sale, I would say £180,000.
0:56:15 > 0:56:19Those valuations could give them a pre-tax profit
0:56:19 > 0:56:24of at least £42,000, minus the usual selling expenses.
0:56:24 > 0:56:27So are they looking forward to moving in?
0:56:29 > 0:56:32Very much, yes. We can't wait to move in
0:56:32 > 0:56:35and start living here and make it as a home.
0:56:35 > 0:56:39- Yeah.- Yeah, so just can't wait.
0:56:39 > 0:56:42No wonder, because it looks like they've finally found
0:56:42 > 0:56:44their perfect family home.
0:56:47 > 0:56:51That's all for now. Join us next time for more brave bidders
0:56:51 > 0:56:53buying their Homes Under The Hammer.
0:56:53 > 0:56:54- See you then.- Goodbye.- Goodbye.
0:57:16 > 0:57:18Subtitles by Red Bee Media Ltd
0:57:18 > 0:57:19E-mail subtitling@bbc.co.uk