0:00:02 > 0:00:04Since we started making Homes Under the Hammer, we have seen
0:00:04 > 0:00:07hundreds of people take the plunge and buy property at auction.
0:00:07 > 0:00:10And we love bringing the stories to you.
0:00:10 > 0:00:12But it can be a bit of a bumpy ride.
0:00:12 > 0:00:18So fasten your seatbelts and join us now, as we follow people who bought their homes under the hammer.
0:00:43 > 0:00:47Now, this programme isn't all about bricks and mortar.
0:00:47 > 0:00:50It's about real people who have a personal tale to tell.
0:00:50 > 0:00:53And you never know how things are going to turn out.
0:00:53 > 0:00:56So here are the properties up for auction on today's show.
0:00:56 > 0:01:02This semidetached on the outskirts of Cardiff appears to have everything going for it.
0:01:02 > 0:01:04It doesn't look too bad on the outside.
0:01:04 > 0:01:06Fingers crossed for the inside...
0:01:06 > 0:01:11In Kent, this fantastic property gets my heart racing.
0:01:11 > 0:01:16I get so excited when, on Homes Under the Hammer, I find properties like this.
0:01:16 > 0:01:20And I find out who bagged a bargain in Shropshire.
0:01:20 > 0:01:24I mean, it's a bit shabby, it's a bit dated, it's not exactly huge.
0:01:24 > 0:01:26But then, it's only 30 grand.
0:01:28 > 0:01:32All these properties have been sold at auction, and we'll find out who bought them
0:01:32 > 0:01:36- and what they paid when they went under the hammer. - You bought it, sir.
0:01:40 > 0:01:44I'm in Penylan, a suburb of Cardiff.
0:01:44 > 0:01:50It's well-connected - just 10 minutes to the M4 - and has good bus links to the city centre.
0:01:50 > 0:01:53It has a pretty park, and the area is known for its tree-lined avenues
0:01:53 > 0:01:57and period properties, which bodes well for today's lot.
0:01:59 > 0:02:05Now, I've done my research and I discovered that houses on this street don't come up for sale that often.
0:02:05 > 0:02:09So, very enticing when the auction lot that came up had a guide price
0:02:09 > 0:02:15of just 158,000 quid, which, for a four-bedroom semidetached around here, fantastic.
0:02:15 > 0:02:17Doesn't look too bad on the outside.
0:02:17 > 0:02:19Fingers crossed for the inside...
0:02:27 > 0:02:28Whoa.
0:02:28 > 0:02:31Well, a nice entrance hall, I have to say.
0:02:31 > 0:02:34Interesting stuff going on with the floor there. But a great-sized space.
0:02:34 > 0:02:36I love this central area here.
0:02:36 > 0:02:39And then you've got the main rooms going off it.
0:02:39 > 0:02:42Lovely dining room, living room area there. Another one there.
0:02:42 > 0:02:46A third sort of reception room there.
0:02:46 > 0:02:48Ah! It's nice.
0:02:48 > 0:02:54The two reception rooms at the front are light and airy, with high ceilings and big windows.
0:02:54 > 0:02:56What does the back have in store?
0:02:56 > 0:03:02So at the rear of the property, a really quite substantial conservatory,
0:03:02 > 0:03:09although judging by the damp on the walls, I'm not quite sure how well it has been constructed,
0:03:09 > 0:03:14because the damp actually goes all the way along the bottom at the front there as well.
0:03:14 > 0:03:16So maybe it hasn't had a damp-proof course put in.
0:03:16 > 0:03:20But it's a useful space. You've got a downstairs loo here. And then another room
0:03:20 > 0:03:22which is more important
0:03:22 > 0:03:25than the horrendous conservatory - the kitchen.
0:03:25 > 0:03:28I say it's a kitchen - it's a room the kitchen should be in.
0:03:28 > 0:03:32And, as yet, it doesn't have any units - oh, and a huge...
0:03:32 > 0:03:34hole in the ceiling.
0:03:34 > 0:03:38# Everybody's got a hole to fill... #
0:03:38 > 0:03:42There was probably a leak upstairs in the past, so hopefully that could easily be fixed.
0:03:42 > 0:03:45But as there's no kitchen at all, there would need to be a fair chunk
0:03:45 > 0:03:48of money put aside to fit out this room.
0:03:51 > 0:03:55The garden and garage outside are a real bonus, or at least
0:03:55 > 0:03:59will be once the rubbish - oh, and the toilet - have been cleared away.
0:03:59 > 0:04:03There's no denying there's lots of work to be done here.
0:04:03 > 0:04:07Well, I came upstairs with slight trepidation. But do you know what?
0:04:07 > 0:04:09What a glorious surprise!
0:04:09 > 0:04:17Four really fantastic bedrooms, and a bathroom that's been pretty much refurbished for you. Up here,
0:04:17 > 0:04:24stick a carpet down or sand the floorboards and you've got yourself basically a house that's finished.
0:04:24 > 0:04:26I love this place, actually.
0:04:29 > 0:04:37Three of the bedrooms are large doubles, and the fourth is far from small.
0:04:37 > 0:04:41As much as I love this house, there is something which has been really concerning me,
0:04:41 > 0:04:45and that is the amount of damp you've got, especially on these internal walls.
0:04:45 > 0:04:49Now you wouldn't normally see that, unless there was a fairly serious problem.
0:04:49 > 0:04:56My guess is that there wasn't a damp-proof course installed in these when the house was built.
0:04:56 > 0:04:59And somebody started doing restoration, obviously,
0:04:59 > 0:05:03and they haven't started with the basics, which is getting the damp issue sorted out.
0:05:03 > 0:05:08This floor has been laid, and you can see it looks like concrete, but it's not actually.
0:05:08 > 0:05:11Underneath there, there's a parquet floor, a wooden floor.
0:05:11 > 0:05:15And this is what they call levelling compound, that they just put on to level the floors.
0:05:15 > 0:05:19They then put these planks on - this hardwood flooring.
0:05:19 > 0:05:22But the damp's come up, and that's why the hardwood flooring has bowed
0:05:22 > 0:05:25in lots of places, like here and just throughout the house.
0:05:25 > 0:05:28Clearly, the whole of this bottom area is just damp.
0:05:28 > 0:05:31So, before you do anything else on this house, you want to take
0:05:31 > 0:05:35everything on the floor off, you want to get a specialist in,
0:05:35 > 0:05:39you want to inject a damp-proof course into all the walls, lay a membrane perhaps in the floor.
0:05:39 > 0:05:44It sounds like an expense, but if you don't, you'll definitely have problems in the future.
0:05:44 > 0:05:50So, although this has plenty of potential and definite kerb appeal, it's not without its issues.
0:05:52 > 0:05:55We asked a local estate agent along to the house
0:05:55 > 0:05:57to tell us what he thinks of it.
0:05:57 > 0:06:01Pretty generously-proportioned, tall ceilings,
0:06:01 > 0:06:04big generous rooms, large hall...
0:06:04 > 0:06:06A little bit saddened as well,
0:06:06 > 0:06:10because I can see that some work had been done, but not completed.
0:06:10 > 0:06:13But the potential and scope is here, I feel.
0:06:13 > 0:06:18All sounds good, but is this a potential moneymaker?
0:06:18 > 0:06:23In my opinion, this property could be suitable as a rental property for a family.
0:06:23 > 0:06:28And this would accumulate in the region of £1,200 per calendar month.
0:06:28 > 0:06:32Sounds like a great opportunity for a rental investment.
0:06:32 > 0:06:35But with a guide price of just 158,000,
0:06:35 > 0:06:40and some of the renovation work already completed, could the easy money be in a resale?
0:06:40 > 0:06:44Once finished, I feel that this property, if completed
0:06:44 > 0:06:51to the standards one would expect for this area, the value would be in the region of up to £400,000.
0:06:51 > 0:06:55I don't know about you, but I think this is a really great house.
0:06:55 > 0:06:58Yes, it does have its problems, specifically the damp,
0:06:58 > 0:07:00which will take a bit of money and effort to sort out.
0:07:00 > 0:07:04But at that kind of guide price, 158,000 quid, there's money to spend
0:07:04 > 0:07:08to turn this into what could be a fantastic family home.
0:07:08 > 0:07:13I'm sure somebody fell in love with it when it went under the hammer.
0:07:18 > 0:07:20Can I see a starting bid of 230,000?
0:07:20 > 0:07:22230 I'm bid straight away, sir.
0:07:22 > 0:07:24Thank you.
0:07:24 > 0:07:28At 230,000... Five... 235...
0:07:28 > 0:07:32At 235... 240 is bid. 245. 250.
0:07:32 > 0:07:36255. 260. And five, can I, sir?
0:07:36 > 0:07:39Thank you. 265. 270 is bid.
0:07:39 > 0:07:42At 275... 280 I'm bid. Thank you.
0:07:42 > 0:07:45I'm not going to dwell. One... 281.
0:07:45 > 0:07:51£282,000. At £282,000...
0:07:51 > 0:07:55Are we all done? At 282... Three.
0:07:55 > 0:07:58Make it four, sir. I'm not going to dwell as long next time.
0:07:58 > 0:08:01284... 284. Quick if he wants it.
0:08:01 > 0:08:05285. 285. 286. 286.
0:08:05 > 0:08:08At 286... "No," he says.
0:08:08 > 0:08:12At £286,000...it's yours, sir. Thank you very much.
0:08:14 > 0:08:17The persistent bidder was developer Mohammad.
0:08:17 > 0:08:22But he'll be the silent partner in this venture, leaving it all to his son, Imran.
0:08:22 > 0:08:26Together they bought the house for 286,000 -
0:08:26 > 0:08:30£128,000 over the guide price!
0:08:30 > 0:08:36I met Imran back at the property to hear why they were so keen to buy it.
0:08:36 > 0:08:38- Imran, congratulations.- Thank you.
0:08:38 > 0:08:41- You've got a beautiful house, haven't you?- Thanks a lot.
0:08:41 > 0:08:43Tell me why you wanted to buy it?
0:08:43 > 0:08:49Just thought of it as being a good investment, really. And the area
0:08:49 > 0:08:51and location is really good as well.
0:08:51 > 0:08:55- It went a lot over the guide price, didn't it?- It did, yeah.
0:08:55 > 0:08:56Were you surprised by that?
0:08:56 > 0:09:02Not really, because knowing the area we expected it to be as high as it was.
0:09:02 > 0:09:04What was your strategy at the auction?
0:09:04 > 0:09:09Just see how it goes and hopefully bid to win.
0:09:09 > 0:09:12That's what happened really, so...
0:09:12 > 0:09:16This is Imran's first property investment with his father.
0:09:16 > 0:09:20His day job is in IT, but it doesn't take a veteran developer
0:09:20 > 0:09:23to see the potential in this place. What are you going to do to it?
0:09:23 > 0:09:28We're just looking to get one of the walls removed, to make that into a larger reception room.
0:09:28 > 0:09:32- OK, so the wall in between two of the reception rooms?- Yeah.
0:09:32 > 0:09:36And also, extend kitchen out in the back and get a new kitchen put in.
0:09:36 > 0:09:40With a view to renting it out or selling it on?
0:09:40 > 0:09:44I'll probably live in it myself for a while, and then sell it on
0:09:44 > 0:09:48- maybe, or just stay here, see what happens really.- OK.
0:09:48 > 0:09:54Well, I can't blame Imran for wanting to live in what will be a beautiful house, himself.
0:09:54 > 0:09:57Although there is the big issue here with the damp.
0:09:57 > 0:10:02Have you thought through what you're going to do to eradicate that?
0:10:02 > 0:10:05Yeah, we've spoken to a few builders, and they've mentioned
0:10:05 > 0:10:08that the damp is probably because there's no heating on in the house.
0:10:08 > 0:10:14There's no-one been occupying the house over the winter. And...
0:10:14 > 0:10:18so that's probably the main issue, really.
0:10:18 > 0:10:21Heating, once we get that on, it should sort most of it out.
0:10:21 > 0:10:25Oh, right, OK. They don't think there's a problem with rising damp and the floors?
0:10:25 > 0:10:30No, just in the back conservatory area there's no cavity wall,
0:10:30 > 0:10:33so that's why you've got a lot of damp in that area.
0:10:33 > 0:10:35But that we're planning on having redone as well.
0:10:35 > 0:10:37The whole conservatory out the back?
0:10:37 > 0:10:41- Yeah.- OK. So roughly how much have you got set aside for doing the work?
0:10:41 > 0:10:45Em... We're estimating about 20,000-30,000.
0:10:45 > 0:10:46- To finish it off?- Yeah.
0:10:46 > 0:10:49- That's quite a healthy budget then. - Yeah.
0:10:49 > 0:10:51Let's hope the budget stays on the healthy side.
0:10:51 > 0:10:57Once Imran has had the damp looked at, I fear he could be in for a nasty surprise.
0:10:57 > 0:11:03- And in terms of timescale...? - Got a few builders that can start end of this month.
0:11:03 > 0:11:07And they estimate the work will complete in about a month's time, so...
0:11:07 > 0:11:10- Six weeks and it should all be sorted then?- Yeah, hopefully.
0:11:10 > 0:11:13Well, listen, congratulations, well done.
0:11:13 > 0:11:16- We're looking forward to seeing how you get on.- Thank you.
0:11:18 > 0:11:22Well, there's no doubt that Imran has got himself a beautiful home here.
0:11:22 > 0:11:27However, I think six weeks to sort it out is a bit ambitious.
0:11:27 > 0:11:32And I think those damp issues are going to be harder to solve than Imran thinks.
0:11:32 > 0:11:35You can find out how he gets on later in the show.
0:11:40 > 0:11:44I'm in Hextable, a village near Dartford in Kent,
0:11:44 > 0:11:48to see a property that got my heart racing a little faster than normal.
0:11:48 > 0:11:52I love auctions because you never know what's going to be up for sale.
0:11:52 > 0:12:00I see lots of flats and houses, and just occasionally something rather special - and today, I'm in luck.
0:12:00 > 0:12:02It's a grand detached house.
0:12:02 > 0:12:08The guide? Just £330,000-350,000.
0:12:08 > 0:12:10Looks pretty impressive, doesn't it?
0:12:10 > 0:12:13Now, this one has got to have at least four bedrooms, right?
0:12:13 > 0:12:17Wrong! For the past 46 years, this gorgeous Edwardian property has been
0:12:17 > 0:12:21used as offices, but I can already see masses of potential here.
0:12:21 > 0:12:25# Bend me, shake me any way you want me
0:12:25 > 0:12:28# As long as you love me it's all right... #
0:12:28 > 0:12:35My goodness, what a welcome! Look at this beautiful entrance hall.
0:12:35 > 0:12:37And you've got these amazing tiles.
0:12:37 > 0:12:38Do you know what I love about these?
0:12:38 > 0:12:40All the different colours you've got.
0:12:40 > 0:12:43And they've been really well looked after, which is fantastic.
0:12:43 > 0:12:46You walk through here into a second reception room.
0:12:46 > 0:12:49It's so big. I mean, this is a room in itself, isn't it?
0:12:49 > 0:12:54Again, you've got gorgeous cornicing and this rather grand staircase.
0:12:54 > 0:12:57Lovely newel post. It's got a really nice feeling about it, this place.
0:12:57 > 0:13:04This could be a truly amazing family home, but it also has great investment potential.
0:13:04 > 0:13:07With a footprint of over 5,000 square feet,
0:13:07 > 0:13:12I reckon it could easily be turned into five substantial apartments.
0:13:17 > 0:13:19It currently has four offices,
0:13:19 > 0:13:22two storerooms and a kitchen on the ground floor.
0:13:22 > 0:13:25Another five offices and a kitchen on the first floor.
0:13:25 > 0:13:29And a further three huge rooms on the top floor.
0:13:29 > 0:13:33What a size. I think what I love is the grandeur of this place.
0:13:33 > 0:13:37You've got high ceilings, a beautiful bay window over there.
0:13:37 > 0:13:40Again, such intricate cornicing. I mean, it's beautiful.
0:13:40 > 0:13:45Not to mention that! Look at that staring at me!
0:13:45 > 0:13:47An amazing marble fireplace.
0:13:47 > 0:13:49Let's see what's behind here.
0:13:49 > 0:13:51Let's get that off.
0:13:51 > 0:13:53Wow!
0:13:53 > 0:13:55Look at that, these beautiful tiles.
0:13:55 > 0:13:57I love it.
0:13:57 > 0:14:02I get so excited when, on Homes Under the Hammer, I find properties like this.
0:14:02 > 0:14:04Really, really nice.
0:14:04 > 0:14:09The one aspect that does slightly let it down is the lack of outside space.
0:14:09 > 0:14:13While there's plenty of parking to the front, there's only a small lawned area to the side.
0:14:13 > 0:14:16So not ideal for a family home.
0:14:16 > 0:14:19But still, it's such a waste as an office block.
0:14:21 > 0:14:25I would love to see this house converted back to residential.
0:14:25 > 0:14:31Now, this would involve contacting the council and seeing how likely it would be to obtain a change of use.
0:14:31 > 0:14:35Now, I do know that in July 2009, planning permission was refused
0:14:35 > 0:14:41for change of use from the current office premises into a full daycare nursery.
0:14:41 > 0:14:46Now, that was because of potential traffic hazards and noise pollution to neighbouring properties.
0:14:46 > 0:14:50And so maybe, just maybe, the council would look favourably
0:14:50 > 0:14:54on an application to change this house back to residential.
0:14:54 > 0:14:59I would definitely be calling the council first, before going to the auction.
0:14:59 > 0:15:03It's easy to fall in love with the charm of this place, but if permission
0:15:03 > 0:15:08to change its purpose was granted, the new owner could be on to a real moneymaker.
0:15:08 > 0:15:14Whilst the old romantic in me wants to turn this into a gorgeous family house,
0:15:14 > 0:15:19the investor in me sees this potentially as five flats.
0:15:19 > 0:15:26Now, if you obtained the permission to convert this, quite frankly I think it's a licence
0:15:26 > 0:15:28to print money.
0:15:30 > 0:15:33The possible planning issues could put off potential investors.
0:15:33 > 0:15:40But with a guide price of 330,000-350,000, I reckon it's worth a gamble.
0:15:40 > 0:15:44Does a local estate agent agree with me?
0:15:44 > 0:15:47Detached house.
0:15:47 > 0:15:50Lots of accommodation. Some of the rooms have been
0:15:50 > 0:15:52chopped around a bit. It was commercial units.
0:15:52 > 0:15:54You've got some partitions separating it.
0:15:54 > 0:15:56But it wouldn't take an awful lot of effort
0:15:56 > 0:15:59and a lot of imagination to get it back to what it once was.
0:15:59 > 0:16:01Lovely, lovely home.
0:16:03 > 0:16:06But is there more money to be made if it was kept as offices?
0:16:06 > 0:16:11If you were to keep it as a commercial unit and rent it out on an annual basis,
0:16:11 > 0:16:15you're probably looking at an income of approximately £30,000 per year.
0:16:15 > 0:16:20That's a potential income of £2,500 per calendar month.
0:16:20 > 0:16:25Mmm, tempting. But if the new owner falls under the spell of this place,
0:16:25 > 0:16:30and decides to convert it to a family home, how much could they be looking at?
0:16:30 > 0:16:32If this was a single residential dwelling,
0:16:32 > 0:16:38you're probably looking in the region of about £600,000-650,000.
0:16:38 > 0:16:43And there's always my money-making idea of converting the property into flats.
0:16:43 > 0:16:48I think you'd comfortably get five two-bedroom apartments.
0:16:48 > 0:16:55You'd be looking at about 160-170 for each of the two bedrooms, and maybe 180-185 for the penthouse.
0:16:55 > 0:17:00So you're looking at an income of nearly 800,000 if they were apartments, as a resale value.
0:17:00 > 0:17:04As things stand it's a great office space.
0:17:04 > 0:17:07But I think it would make an incredible home for someone.
0:17:07 > 0:17:11You could turn this into flats, or you could be extremely indulgent
0:17:11 > 0:17:16and make this a single dwelling, although the lack of garden will always cap the value here.
0:17:16 > 0:17:18Everything is subject to planning, of course.
0:17:18 > 0:17:21So let's see who fell for this as we go to the auction.
0:17:26 > 0:17:30Lots of interest in this particular one.
0:17:30 > 0:17:31350 to start me?
0:17:31 > 0:17:36350 I have, thank you. At £350,000 is bid. 355, do I see?
0:17:36 > 0:17:40355 I am bid. And 360. 360 is bid.
0:17:40 > 0:17:43365? 365.
0:17:43 > 0:17:47And 370? 365 is against you. 368?
0:17:47 > 0:17:52368. And 370? 370. 372. 375.
0:17:52 > 0:17:58375. 378 for you? No? At 375...
0:17:58 > 0:18:01378 in a fresh place, and 380.
0:18:01 > 0:18:04380 I am bid. 382. And 385...
0:18:04 > 0:18:09385 I have. And 388. And 390.
0:18:10 > 0:18:13390 is bid. 392.
0:18:13 > 0:18:15395.
0:18:15 > 0:18:17395.
0:18:17 > 0:18:20398. 398. And 400.
0:18:20 > 0:18:23400. Now five.
0:18:23 > 0:18:26405. And 410.
0:18:28 > 0:18:30Lots of parking.
0:18:30 > 0:18:33405,000 then, are you all done?
0:18:33 > 0:18:36Sold at 405,000.
0:18:36 > 0:18:38And your bidder's number is?
0:18:38 > 0:18:46So for 405,000, £55,000 over the top guide price, the new owners of this
0:18:46 > 0:18:49huge house are husband and wife, Philip and Sam.
0:18:49 > 0:18:51They own a construction company together.
0:18:51 > 0:18:55I met the couple and their four children at the property to find out their plans.
0:18:58 > 0:19:00So Sam, tell me, why have you bought this house?
0:19:00 > 0:19:05We just think it's a fantastic property, and we just think it would just make a fantastic family home.
0:19:05 > 0:19:09- Having four kids and... - Oh, so you bought it to live in with your family?
0:19:09 > 0:19:13Absolutely, yes. Yes, we want to restore it to its former glory.
0:19:13 > 0:19:15'Music to my ears.'
0:19:15 > 0:19:18But with his background in construction, it wasn't the vision
0:19:18 > 0:19:23of a dream home that first attracted Philip to the property.
0:19:23 > 0:19:29We looked at it as an investment originally because of the guide price. Just as an investment.
0:19:29 > 0:19:33But then when we walked in and saw all the beautiful covings and finishes
0:19:33 > 0:19:36and whatnot, we fell in love with it. Then Sam came along after...
0:19:36 > 0:19:38- That was it!- That was it!
0:19:38 > 0:19:41Sam, tell me, when you first saw it, what did you think?
0:19:41 > 0:19:45I thought, "Wow!" I mean, from the outside, I thought it was just great.
0:19:45 > 0:19:49And then, coming in, as you say, the features, the fireplaces, the covings, the hallway...
0:19:49 > 0:19:51I mean, just to actually walk in and have
0:19:51 > 0:19:54that kind of hallway. And the stairs - the stairs as well.
0:19:54 > 0:19:57The stairs are fantastic. I just thought, "Yeah."
0:19:57 > 0:20:00That's everything that I said when I first walked in.
0:20:02 > 0:20:04This isn't the couple's first auction purchase.
0:20:04 > 0:20:07They already own two other rental properties.
0:20:07 > 0:20:10So they're far from novices in the property game.
0:20:11 > 0:20:15Now, I do think we're slightly jumping the gun here,
0:20:15 > 0:20:17because as it stands this is a commercial building.
0:20:17 > 0:20:21- It is.- It doesn't have residential use, does it?- No.
0:20:21 > 0:20:24Have you even had a chat with the council yet?
0:20:24 > 0:20:26We haven't.
0:20:26 > 0:20:29We have a planning consultant who's had a preliminary chat.
0:20:29 > 0:20:34And they do have, under their UDP, the Urban Development Plan,
0:20:34 > 0:20:38a policy not to...
0:20:38 > 0:20:42put buildings back to residential because of the loss of employment,
0:20:42 > 0:20:45unless you can justify and show good cause.
0:20:45 > 0:20:49So at the moment we're just collating information to get that ready.
0:20:49 > 0:20:53You're just trying to justify what a great cause you as a family are, really?
0:20:53 > 0:20:57Yeah. The building has been empty for a while. It's very unloved.
0:20:57 > 0:21:00It's more suited to a house.
0:21:00 > 0:21:02That's what we think anyhow!
0:21:02 > 0:21:06As they own a construction company, Philip and Sam have all
0:21:06 > 0:21:09the expertise and contacts to do the work themselves.
0:21:09 > 0:21:12And Sam has big plans for the heart of the home.
0:21:14 > 0:21:17Basicially the kitchen will move from where it presently is,
0:21:17 > 0:21:22and where the kitchen is now will actually become, hopefully, an open breakfast area
0:21:22 > 0:21:26with, off it at the back, a utility and downstairs cloakroom.
0:21:26 > 0:21:29And then all being well,
0:21:29 > 0:21:34where the old fireplace is now, we aim to put a...open it up into
0:21:34 > 0:21:38a nice archway that would then lead into the breakfast room,
0:21:38 > 0:21:41- which is what the kitchen is now. - That sounds fantastic.
0:21:41 > 0:21:44- That's the plan. - And that's just the start.
0:21:44 > 0:21:48The family plan to create an eight-bedroom dream home.
0:21:48 > 0:21:49Three of the bedrooms would be en suite,
0:21:49 > 0:21:56there would be a deluxe family bathroom, study, grand living area and a separate dining room.
0:21:56 > 0:22:02Basically, they aim to restore this old shell back to its former glory.
0:22:02 > 0:22:07So, what sort of money do you think you'd need to spend on a property like this to get it up to standard?
0:22:07 > 0:22:10Em, more than we have.
0:22:10 > 0:22:13But I think about £90,000.
0:22:13 > 0:22:17OK. And you are in the industry, so that does help you both.
0:22:17 > 0:22:20- That's 90 cost, yeah.- Yeah, 90 cost.
0:22:20 > 0:22:23- Which, if you could stick to that, would be fantastic.- Yeah.
0:22:23 > 0:22:27Philip is going to have to keep a tight hold of those purse strings.
0:22:27 > 0:22:30Their four children have their own ideas for their dream home.
0:22:37 > 0:22:41Verity, Bea, Tom and Ben, what do you think of your new house?
0:22:41 > 0:22:45- It's good.- Brilliant. - Do you like it?- Yeah.
0:22:45 > 0:22:47What I want to know is, where are your bedrooms
0:22:47 > 0:22:51going to be based, and how are you going to divide all those rooms up?
0:22:51 > 0:22:55Me and my brother are sharing a room, and we're on the top floor.
0:22:55 > 0:22:59You've got lots of rooms on the top floor, so what are you going to do with them?
0:22:59 > 0:23:02A homework room,
0:23:02 > 0:23:06a train room, and a PlayStation room.
0:23:06 > 0:23:10So you're going to have three different rooms to do all those different things?
0:23:10 > 0:23:13So what are you most looking forward to about all of this?
0:23:13 > 0:23:15- Just sleeping in it. - Just sleeping in it?
0:23:16 > 0:23:20But I suspect Mum and Dad have a few sleepless nights ahead of them
0:23:20 > 0:23:23before Tom gets to sleep in his new room.
0:23:23 > 0:23:25You've taken a massive risk, haven't you?
0:23:25 > 0:23:29You've steamed in there, you've bought a house, you've spent £400,000 on it,
0:23:29 > 0:23:33without the planning permission. So, it's a bit of a gamble, isn't it?
0:23:33 > 0:23:37It is. This is probably the biggest gamble we ever took without planning before.
0:23:37 > 0:23:41So what's your plan B, if the council turn around and say,
0:23:41 > 0:23:45"No, I'm really sorry, it has to be used as a business"? What then?
0:23:45 > 0:23:48Well, I personally think we'll win.
0:23:48 > 0:23:51- Do you? - Yeah, we wouldn't buy it otherwise!
0:23:51 > 0:23:52Guys, good luck with this.
0:23:52 > 0:23:56- I hope you get the planning, that's all I can say.- Thank you very much.
0:23:56 > 0:23:57- And you.- Thank you.
0:23:59 > 0:24:03Sam and Philip have a huge obstacle standing in their way - planning!
0:24:03 > 0:24:08Will they obtain the permission to turn this from commercial into residential?
0:24:08 > 0:24:11They so desperately want to turn this into their dream home.
0:24:11 > 0:24:15You can find out if they're successful later in the show.
0:24:16 > 0:24:20Coming up, I head for Telford in Shropshire, in search of treasure.
0:24:20 > 0:24:25Well, this may look like an average little flat, but I reckon it's a gold mine in disguise.
0:24:26 > 0:24:32Find out if Philip and Sam won their battle for planning permission at this commercial property in Kent.
0:24:32 > 0:24:36It's more suited to a house. That's what we think anyhow!
0:24:38 > 0:24:42But first, in Cardiff, it's decision time for Imran.
0:24:43 > 0:24:48It's tempting to sell it, but I'm still not sure.
0:24:52 > 0:24:58This four-bed semi in Penylan Cardiff was bought at auction by IT analyst Imran.
0:24:58 > 0:25:06Along with his dad, he paid 286,000 for it, a massive £128,000 over the
0:25:06 > 0:25:09guide price, but this was no case of auction fever.
0:25:09 > 0:25:12What was your strategy?
0:25:12 > 0:25:20Just see how it goes and hopefully bid to win and that's what happened.
0:25:20 > 0:25:27Even the obvious signs of major damp didn't faze Imran as he set about transforming the house.
0:25:27 > 0:25:31Five months later we're back to see what he's done.
0:25:31 > 0:25:38The outside looks exactly the same, but inside, well, that's a different story.
0:25:38 > 0:25:42# It's amazing, it's amazing
0:25:42 > 0:25:46# All that you can do
0:25:48 > 0:25:50# It's amazing
0:25:50 > 0:25:52# Makes my heart sing
0:25:52 > 0:25:56# Now it's up to you... #
0:25:56 > 0:26:00Oh, well, does this place have the wow factor?!
0:26:00 > 0:26:08The main entrance now has a glamorous white quartz tile floor and the once empty kitchen
0:26:08 > 0:26:11is now one to be very proud of with base-unit lighting
0:26:11 > 0:26:17and all the mod cons, including an American-style fridge.
0:26:17 > 0:26:22Upstairs, those four empty rooms are now luxurious boudoirs.
0:26:24 > 0:26:27Complete with ultra-modern fitted wardrobes.
0:26:31 > 0:26:35This place has got real show-home appeal.
0:26:36 > 0:26:41Done quite a few changes, changed the stairs to a spindle staircase,
0:26:41 > 0:26:49a few of the ceilings were not really in very good condition so they were replaced and boarded up.
0:26:49 > 0:26:52And everything was repainted,
0:26:52 > 0:26:55new glass in the windows as well.
0:26:55 > 0:26:58And that's about it!
0:26:58 > 0:27:02A slight understatement, I think.
0:27:02 > 0:27:04Imran doesn't do things by halves.
0:27:04 > 0:27:08In fact, the main lounge is now double the size.
0:27:11 > 0:27:14There used to be a wall by here which has been knocked through
0:27:14 > 0:27:20and this room has been made into one large room, it was two small rooms.
0:27:20 > 0:27:24And we have also got this double-door entrance which used to be
0:27:24 > 0:27:30two single doors and now it's made into one large entrance
0:27:30 > 0:27:33and it lets a lot of the light through.
0:27:33 > 0:27:35It makes it look much nicer.
0:27:35 > 0:27:41And it's not just the inside that's been given a whole new lease of life.
0:27:41 > 0:27:44The garden, if you remember, used to be a big mess.
0:27:46 > 0:27:49And we decided to get it cleared out and returfed.
0:27:49 > 0:27:52But not everything has changed.
0:27:52 > 0:27:55The old conservatory is still there.
0:27:55 > 0:27:58You remember my concerns about the damp patches in there
0:27:58 > 0:28:02and throughout the house, well, my suspicions were proved right.
0:28:02 > 0:28:08This place had a nasty case of rising damp which Imran discovered to his cost.
0:28:08 > 0:28:10The damp problem was quite bad...
0:28:10 > 0:28:15in the conservatory area especially, so the builders who did the work
0:28:15 > 0:28:22sorted a few things out and we noticed after they left we had the same problem
0:28:22 > 0:28:26so we got some damp specialists to come in
0:28:26 > 0:28:31and look and they fixed everything and since then it's been OK.
0:28:31 > 0:28:35With the damp issue resolved, rather than knocking the conservatory down
0:28:35 > 0:28:41as he'd originally planned, Imran simply painted it and laid a new laminate floor.
0:28:43 > 0:28:49Thanks to the rising damp, the old wooden floor in the front reception room was warped and bowed.
0:28:49 > 0:28:54So Imran replaced it with more eco-friendly bamboo flooring.
0:28:54 > 0:28:56Not only is it cheaper than traditional wood
0:28:56 > 0:29:01but its expansion/contraction rate is also lower than hardwood.
0:29:01 > 0:29:06Bamboo is more moisture resistant, a useful bonus where there's a history of damp.
0:29:08 > 0:29:13Imran was originally hoping to finish the house and move in in just six weeks.
0:29:13 > 0:29:18But the extra work on damp-proofing extended the renovation to five months.
0:29:18 > 0:29:22What effect did the extra time have on the budget?
0:29:22 > 0:29:25Imran planned to spend 20,000 to 30,000.
0:29:27 > 0:29:30We spent around 30,000, or just over.
0:29:30 > 0:29:33So, 30,000-33,000, something like that,
0:29:33 > 0:29:36so it's not too bad. It's as expected really.
0:29:36 > 0:29:38We got a nice finish on the house as well.
0:29:40 > 0:29:44Well, he seems happy but what do two local estate agents think?
0:29:44 > 0:29:48As soon as you come into the hall, it hits you.
0:29:48 > 0:29:50You've got quartz tiled flooring,
0:29:50 > 0:29:53the central doors into the main lounge which are fully glazed
0:29:53 > 0:29:58and you get this sense of space and a wow factor.
0:30:00 > 0:30:02The overall house is great for any buyer.
0:30:02 > 0:30:07They've got partial blank canvas in some rooms and the important rooms,
0:30:07 > 0:30:08you have that wow impression
0:30:08 > 0:30:10which is important for selling.
0:30:10 > 0:30:13It looks like a show home and this is the kind of property
0:30:13 > 0:30:15I'd love to show my clients around.
0:30:15 > 0:30:20Imran and his father bought the house for 286,000 and spent
0:30:20 > 0:30:25just over £30,000 bringing it up to its current show home condition.
0:30:25 > 0:30:28So, when it comes to those all-important valuations,
0:30:28 > 0:30:32anything above the £320,000 mark will see them in profit.
0:30:36 > 0:30:40The resale value of this property is £385,000.
0:30:40 > 0:30:44In my opinion, it could hit £400,000.
0:30:44 > 0:30:47That sounds really good.
0:30:47 > 0:30:51It's probably what I expected, maybe just higher.
0:30:51 > 0:30:56I did think it would be about 350 to 400,000 but that sounds really good.
0:30:58 > 0:31:06Sounds like Imran could be tempted to sell but this place could also be a good rental opportunity.
0:31:06 > 0:31:10The rental figure for this property would be £1,200 per calendar month.
0:31:10 > 0:31:16I'd imagine you'd be looking around £1,100 per calendar month.
0:31:16 > 0:31:20Yeah, that would be a good option as well if I wanted to rent it out
0:31:20 > 0:31:23and if I found another place for myself.
0:31:23 > 0:31:28It's tempting to sell it but I'm still not sure.
0:31:28 > 0:31:31There's other people I'd have to consult first before that happens.
0:31:31 > 0:31:33We'll see what happens.
0:31:33 > 0:31:38Whether Imran and his dad choose to sell or rent it out, they'll see
0:31:38 > 0:31:43a good return on this place so their hard work hasn't been in vain.
0:31:44 > 0:31:46It's been difficult but it's worth it.
0:31:46 > 0:31:50At the end, it's turned out as a good result.
0:31:50 > 0:31:53Better than I expected.
0:31:58 > 0:32:01Does that mean Imran will quit his IT career
0:32:01 > 0:32:04and follow in the footsteps of his property-developing dad?
0:32:04 > 0:32:08I may be at the auction place again to get another place
0:32:08 > 0:32:13and do that but it depends how it goes with this house
0:32:13 > 0:32:16and see what happens and then I'll decide after.
0:32:34 > 0:32:40This is Dawley in Shropshire which has a long and ancient history.
0:32:40 > 0:32:44Today, you won't find castles but you will find commuters
0:32:44 > 0:32:48since its facelift in the 1960s made it popular with people
0:32:48 > 0:32:52wanting to escape nearby Birmingham at the end of the working day.
0:32:52 > 0:32:56The question is, will I be desperate to leave Dawley
0:32:56 > 0:32:59or manage to uncover a bargain here?
0:32:59 > 0:33:04Just south of Dawley High Street is this ex-local authority housing estate.
0:33:04 > 0:33:11Fairly pleasant, lots of greenery, houses spaced out and I'm here to see a one-bedroom flat.
0:33:11 > 0:33:15It had a guide price of £30,000. Let's take a look inside.
0:33:15 > 0:33:20'There's something substantial and solid about this red-brick block'
0:33:20 > 0:33:25and the estate has a nice atmosphere with well-maintained gardens galore.
0:33:25 > 0:33:30'Through the front door, will I find a well-maintained flat?'
0:33:32 > 0:33:33Not exactly a lot of space.
0:33:33 > 0:33:37Let's hope it improves. We have a bathroom there, bathroom and loo.
0:33:37 > 0:33:41There's a sink unit but you can't get to it because of the door.
0:33:41 > 0:33:46Good news in terms of the lounge. A nice size, so we like that.
0:33:46 > 0:33:51A bit further through, a kitchen in need of some tender loving care.
0:33:51 > 0:33:55And through finally to your one bedroom.
0:33:55 > 0:33:58Good news is it's got a bit of in-built storage.
0:33:58 > 0:34:00Bad news - what is that?
0:34:00 > 0:34:05Looks like a bit of historical damp. That needs checking out.
0:34:05 > 0:34:12It's a bit shabby, it's a bit dated, it's not exactly huge, but then it's only 30 grand.
0:34:12 > 0:34:20'30 grand for a one-bed flat isn't too bad. But what's worrying is the disintegrating wall in the kitchen.'
0:34:20 > 0:34:23There's plenty of damp in this place.
0:34:23 > 0:34:27If there's a competition, this patch would win outright.
0:34:27 > 0:34:29I'm going to take a look outside.
0:34:29 > 0:34:34Yeah, the problem is with the exterior of the building.
0:34:34 > 0:34:37It means it's the responsibility of the freeholder
0:34:37 > 0:34:42so I'd get on to them. That's what you're paying £30 a month maintenance and ground rent for.
0:34:42 > 0:34:48In terms of legals, the good news is the local housing authority have a policy of selling
0:34:48 > 0:34:53all their properties with a new 99-year lease so that's a big tick in the box.
0:34:53 > 0:35:00Bonuses like that can save lots of hassle, paperwork and money post-completion.
0:35:00 > 0:35:05In this case, that would give you more time to enjoy your very own square of garden out the front.
0:35:05 > 0:35:11OK, it's not very private but it's yours and I'd take outside space
0:35:11 > 0:35:15over no outside space any day, no matter where it is.
0:35:15 > 0:35:18The communal area at the back is useful for hanging washing.
0:35:18 > 0:35:24All in all, the whole block is well-designed but will it jazz up your bank account?
0:35:26 > 0:35:29Let's say you're an investor looking to spend your money.
0:35:29 > 0:35:31You don't mind where you buy.
0:35:31 > 0:35:33What's your best bet?
0:35:33 > 0:35:38You might think astronomical London rents and a flat there would be a good way to go
0:35:38 > 0:35:43however it's not how much you get back in rent that's important, it's the yield.
0:35:43 > 0:35:51Say you spent 200,000 quid on an apartment and you get £900 a month in rent - that's a 5% yield.
0:35:51 > 0:35:55If you spent 40 grand on this place and get £400 a month in rent,
0:35:55 > 0:35:59that's a whopping 12% yield.
0:35:59 > 0:36:03Forget your posh London pads. I know where I'd put my money.
0:36:05 > 0:36:09So there's a potentially fantastic yield here.
0:36:09 > 0:36:1512% on a property like this, when anything over 7% is usually regarded as good.
0:36:15 > 0:36:19In a climate where banks struggle to give you much interest at all,
0:36:19 > 0:36:23certainly on your savings, this must be worth thinking about.
0:36:24 > 0:36:26I asked a local estate agent along
0:36:26 > 0:36:28to see if he agreed with me
0:36:28 > 0:36:30about this stellar little investment.
0:36:31 > 0:36:33First impressions are...
0:36:33 > 0:36:37Well, what can I say? It needs a lot of work doing to the property.
0:36:38 > 0:36:41I'd say you'd need to spend,
0:36:41 > 0:36:44excluding the damp problem,
0:36:44 > 0:36:48approximately £5,000 to £6,000
0:36:48 > 0:36:53getting the kitchen and bathrooms sorted out and then another 1,000
0:36:53 > 0:36:55to get the decor in good order.
0:36:55 > 0:37:00There could be a significant outlay to bring this flat up to standard.
0:37:00 > 0:37:04But I reckon once finished it's got great rental potential.
0:37:04 > 0:37:11Very good rental investment in terms of getting good yields on these types of properties.
0:37:11 > 0:37:14You'd estimate around £400 per calendar month.
0:37:14 > 0:37:19So, if the buyer bought close to the guide price and keeps a close eye
0:37:19 > 0:37:24on the renovation budget, they could reap rental rewards from this neat little property.
0:37:24 > 0:37:26But what about resale?
0:37:26 > 0:37:28Once the works have been completed,
0:37:28 > 0:37:31I'd put this on the open market at around £50,000.
0:37:31 > 0:37:36This may look like an average little flat but I reckon it's a gold mine in disguise.
0:37:36 > 0:37:40And I reckon there's a profit here ready to be dug out.
0:37:40 > 0:37:42Let's see who spotted it at the auction.
0:37:47 > 0:37:50A one-bedroom leasehold ground-floor apartment.
0:37:50 > 0:37:5220, can I say?
0:37:52 > 0:37:5520 I'm bid, standing. At £20,000.
0:37:55 > 0:37:5621...
0:37:56 > 0:37:5922. 23. 24...
0:38:00 > 0:38:04At 24,000. Another one?
0:38:04 > 0:38:09At 24,000. The bid is in the middle at £24,000.
0:38:09 > 0:38:1125, standing behind you.
0:38:11 > 0:38:1525. 26. 27.
0:38:15 > 0:38:1728. 29.
0:38:17 > 0:38:2130. 31. 32.
0:38:21 > 0:38:2433. 34.
0:38:24 > 0:38:28Shaking his head. Still with you, sir, at £34,000.
0:38:28 > 0:38:32At £34,000 for the first time.
0:38:32 > 0:38:36At £34,000 for the second time.
0:38:36 > 0:38:40A third and final time at £34,000.
0:38:41 > 0:38:44You bought it, sir. Well done.
0:38:44 > 0:38:49So, for £4,000 over the £30,000 guide price, the new owner is Ray.
0:38:49 > 0:38:54He's a mortgage adviser with a small portfolio of buy-to-let properties.
0:38:54 > 0:38:56He bought this flat with a business partner.
0:38:56 > 0:38:59If Ray looks familiar, that's because we've met him before
0:38:59 > 0:39:01back in 2008.
0:39:01 > 0:39:04I wanted to know how things were going for him in these difficult
0:39:04 > 0:39:11and different market times and what tempted him to buy this little lot, as if I needed to ask.
0:39:11 > 0:39:13Ray, good to see you again.
0:39:13 > 0:39:15Nice to see you again, Martin.
0:39:15 > 0:39:19Last time we met in Telford you were working on a one-bedroom flat.
0:39:19 > 0:39:23Two-bedroom flat in the St George's area. A maisonette.
0:39:23 > 0:39:27- We were doing that last time you came.- How did that go?
0:39:27 > 0:39:34It went fine. We rented it out within about two weeks of completion, redecorating and refurbishment,
0:39:34 > 0:39:37and we're getting a reasonable rent, thank you.
0:39:37 > 0:39:40Remind me what you do - you're a mortgage broker.
0:39:40 > 0:39:44- I'm a mortgage broker by trade... - Phwoar! You've had a few
0:39:44 > 0:39:46interesting years then, have you?
0:39:46 > 0:39:48And a few more to come, I think.
0:39:48 > 0:39:52- Really?- Yes, it'll stay fairly quiet for the next four or five years.
0:39:52 > 0:39:55The people we feel sorry for are the first-time buyers.
0:39:55 > 0:40:00Even now if you want a 90% mortgage as a first-time buyer
0:40:00 > 0:40:03you're still paying 6% or 7% interest rates.
0:40:03 > 0:40:08When you consider the Bank of England rate is 0.5, that's a huge mark-up
0:40:08 > 0:40:11to get on the ladder as a first-time buyer.
0:40:11 > 0:40:13Let's talk about this property.
0:40:13 > 0:40:16Why did you want to buy it?
0:40:16 > 0:40:19The most obvious answer is rental return but in terms of a property
0:40:19 > 0:40:24it's a flat but only one of four, so you're not talking high rise.
0:40:24 > 0:40:28It's got a courtyard, a garden, a fairly large living room
0:40:28 > 0:40:32and it is what it is, but it'll be a nice property when it's done up.
0:40:32 > 0:40:35And this is the kind of thing you look for, is it?
0:40:35 > 0:40:39We look for good rental returns and that tends to be
0:40:39 > 0:40:41the one and two-bedroom flats
0:40:41 > 0:40:47rather than houses. You get a better rental return and we're playing it very safe in this market.
0:40:47 > 0:40:51We want to make sure our rental is well covered.
0:40:51 > 0:40:53How times have changed.
0:40:53 > 0:40:56Today's buzzwords are "safe" and "secure"
0:40:56 > 0:40:58rather than "risky" and "gamble".
0:40:58 > 0:41:01Ray's certainly not taking too much risk here,
0:41:01 > 0:41:04considering the yields it can produce.
0:41:04 > 0:41:07- Tell me what you're going to do to it.- New bathroom, new kitchen.
0:41:07 > 0:41:12Renovate throughout, change the doors and, in reality, a total refit.
0:41:12 > 0:41:18As you've identified, if you walk around, the biggest issue is the damp.
0:41:18 > 0:41:21But we think that problem has been resolved.
0:41:21 > 0:41:24It looks like it was a leaky pipe from outside.
0:41:24 > 0:41:28We'll only know once we strip off all the wallpaper and skirting boards
0:41:28 > 0:41:33and strip it back to basics but we think it's not as bad as it looks.
0:41:33 > 0:41:37Ray has set aside £7,000 to cover renovation and legal costs
0:41:37 > 0:41:41and hopes to have the flat ready to rent within a month.
0:41:42 > 0:41:46- So, what's the future? - To take it slow and steady.
0:41:46 > 0:41:48We're not looking to rush these.
0:41:48 > 0:41:55We'll probably be doing one or two a year, two a year, building up a small portfolio for the future.
0:41:55 > 0:41:58If the market changes and we can start selling them quickly,
0:41:58 > 0:42:01we would up what we're doing, but at the moment
0:42:01 > 0:42:05we have to respect the situation we're in and the market we're in.
0:42:07 > 0:42:14So, Ray giving good advice on how to survive in what are still quite difficult market conditions.
0:42:14 > 0:42:18In terms of this place, he's got himself a corker of a property.
0:42:18 > 0:42:23Still, that damp could give him more problems than he's expecting.
0:42:23 > 0:42:26Find out how he gets on later in the show.
0:42:29 > 0:42:36All our buyers hope the journey was worth it. They took the right turns and avoided the pitfalls.
0:42:36 > 0:42:37Hmm...decisions, decisions.
0:42:37 > 0:42:41Did they make the right ones? Let's go back and find out!
0:42:42 > 0:42:44We're back in Hextable, Kent,
0:42:44 > 0:42:49where I met construction company owners Sam and Philip and their four children.
0:42:49 > 0:42:53The couple bought this substantial detached property for £405,000.
0:42:53 > 0:42:57It had been used as offices for 46 years.
0:42:57 > 0:43:02Surprisingly, Philip didn't initially plan to convert it into their family home.
0:43:04 > 0:43:07Looked at it as an investment originally because of the guide price.
0:43:07 > 0:43:13When we walked in and saw the beautiful covings and finishes, we fell in love.
0:43:13 > 0:43:21Fortunately, they had the vision, contacts and practical skills to make their dream home a reality.
0:43:21 > 0:43:24Unfortunately, they didn't have planning permission.
0:43:24 > 0:43:27Because it was bought as a commercial building,
0:43:27 > 0:43:30Philip and Sam had to apply to the council for a change of use permit.
0:43:30 > 0:43:33If it was turned down, not only would the couple's dream
0:43:33 > 0:43:37be shattered but they would also be facing a costly mistake.
0:43:39 > 0:43:42This is probably the biggest gamble we ever took without planning.
0:43:42 > 0:43:46Nearly a year later, has the gamble paid off?
0:43:48 > 0:43:52It looks like this Edwardian house is back to its former glory.
0:43:52 > 0:43:57# At la-a-ast
0:44:00 > 0:44:04# My love has come along
0:44:09 > 0:44:14# My lonely days are over
0:44:16 > 0:44:22# And life is like a song... #
0:44:22 > 0:44:25How wonderful it is to see this glorious character property
0:44:25 > 0:44:30transformed from functional office spaces into a beautiful home.
0:44:30 > 0:44:36The family hope to move in within days but I wonder how easy a process it was with the planners.
0:44:36 > 0:44:39It took about five months in total.
0:44:39 > 0:44:44We had a planning consultant on board as well and we got marketing reports
0:44:44 > 0:44:49and feasibility studies done on the use of this as offices.
0:44:49 > 0:44:52There's a lot of empty offices up the road with better
0:44:52 > 0:44:54travel connections and whatnot.
0:44:54 > 0:45:00So, once we put that in alongside the planning application, it went through quite fast.
0:45:00 > 0:45:06Five months just to get the permissions, but after that, Philip and Sam didn't stop.
0:45:06 > 0:45:09We were hands on all the time.
0:45:09 > 0:45:12Structurally, we haven't changed anything.
0:45:12 > 0:45:15Internal partitions have been moved and taken down, and rooms
0:45:15 > 0:45:18have been made larger where there was no load-bearing walls.
0:45:18 > 0:45:25And equally, up here, we have in-filled doors, opened up doors, to get the better use of the space.
0:45:25 > 0:45:33The first floor, which once housed five offices, a kitchen and a toilet, now has four huge bedrooms.
0:45:33 > 0:45:39# A dream that I can call my own... #
0:45:39 > 0:45:45Verity and Bea each have their own en suite bathroom, as does the master bedroom.
0:45:46 > 0:45:50But as well as that, it has made use of the old storage cupboard.
0:45:50 > 0:45:54That's now Sam's dressing room but this isn't her favourite room in the house.
0:45:57 > 0:46:00I'm especially pleased with the kitchen.
0:46:00 > 0:46:03That's my pride and joy! The kitchen design is fantastic.
0:46:03 > 0:46:09It was such a small space with partitioned walls and an old little scullery bit, and now it's...
0:46:09 > 0:46:12Well, it's just this big space.
0:46:13 > 0:46:17Philip and Sam have knocked through the old chimney breast
0:46:17 > 0:46:21to create this large open plan kitchen, with adjoining breakfast room.
0:46:21 > 0:46:28In this area, this originally was a couple of rooms with a corridor down this side, with a door at the end.
0:46:28 > 0:46:33The chimney breast in the middle, we have opened that up and made this into one large area
0:46:33 > 0:46:38with a breakfast room and a very nice kitchen, which is my pride and joy.
0:46:38 > 0:46:42And Philip has his own favourite spot.
0:46:42 > 0:46:46Everything has worked well, but I'm pleased with the size of the garden.
0:46:46 > 0:46:48The garden felt so poky at first,
0:46:48 > 0:46:52but it's really opened up now and it feels so much different outside.
0:46:54 > 0:46:57To the front of the house, the tarmac has been replaced by turf,
0:46:57 > 0:46:59and to the side, the breakfast room
0:46:59 > 0:47:05has bi-folding doors opening up to a huge barbecue patio area.
0:47:06 > 0:47:13There is certainly plenty of outside space for Philip and Sam's two young sons Tom and Ben.
0:47:13 > 0:47:16But they also staked a claim to the top floor of the house,
0:47:16 > 0:47:21and were hoping for a train room and a games room.
0:47:24 > 0:47:26There's certainly space for that.
0:47:26 > 0:47:29But I wonder if it will stay this tidy
0:47:29 > 0:47:32once the boys have moved all their toys in.
0:47:34 > 0:47:37Over the weekend we'd planned to start. Yes.
0:47:37 > 0:47:41And it will be a family home, and we hope to stay here for many years.
0:47:41 > 0:47:48Sam and Philip bought the property at auction for £405,000, and have spent 140,000 doing it up.
0:47:48 > 0:47:53That's a total outlay of £545,000.
0:47:53 > 0:47:56But have they invested their money well?
0:47:56 > 0:47:58What do two local estate agents think?
0:48:00 > 0:48:03It's very nice. It's been redecorated sympathetically.
0:48:03 > 0:48:07The rooms are spacious, there are lots of nice features.
0:48:07 > 0:48:09I think it's absolutely fantastic.
0:48:11 > 0:48:13They've made fantastic changes.
0:48:13 > 0:48:16The eight bedrooms, four bathrooms... It's stunning.
0:48:16 > 0:48:20Looked at as an investment, it may not have been the way to go,
0:48:20 > 0:48:22but as a family house, it's perfect.
0:48:24 > 0:48:30If we are looking for a down side, it would be the size of the garden in relation to the size of the property.
0:48:30 > 0:48:34Whilst there is lots of parking, the garden area is quite small.
0:48:34 > 0:48:39Philip won't be too pleased to hear his pride and joy described as "quite small".
0:48:39 > 0:48:42Will the resale values cheer him up?
0:48:42 > 0:48:47Remember, the couple have £545,000 invested here.
0:48:47 > 0:48:51I would suggest that we quoted an asking price of £950,000.
0:48:51 > 0:48:56You would be looking to achieve in the region of 900,000-950,000.
0:48:56 > 0:49:00- That's more than we expected. We're very pleased. - Very pleased with that.
0:49:02 > 0:49:07I should think so! If Philip and Sam were to sell the house at the higher valuation,
0:49:07 > 0:49:12they could be looking at a massive pre-tax profit of about £405,000,
0:49:12 > 0:49:15minus selling expenses, of course.
0:49:15 > 0:49:18But this venture was never just about money.
0:49:18 > 0:49:23We're pleased about the valuation, obviously, but we didn't buy it for the value.
0:49:23 > 0:49:28We bought it on what we saw and believed to be a nice family house.
0:49:28 > 0:49:31It's a beautiful family house, and the value doesn't come into it.
0:49:31 > 0:49:35It's the house. It's not for sale.
0:49:41 > 0:49:45Earlier in the show, we were re-acquainted with mortgage broker Ray.
0:49:45 > 0:49:48This was his second appearance on Homes Under the Hammer.
0:49:48 > 0:49:53He'd previously bought a property as an investment buy-to-let in 2008.
0:49:53 > 0:49:56Since then, he's acquired a small portfolio of properties.
0:49:56 > 0:50:00His latest edition was this one-bed flat in Dawley which he bought
0:50:00 > 0:50:05with a business partner for £34,000.
0:50:05 > 0:50:11Working in the mortgage industry, Ray was aware that the old phrase "safe as houses"
0:50:11 > 0:50:14isn't always the case in the current climate.
0:50:14 > 0:50:16# Living by numbers
0:50:18 > 0:50:20# Living by numbers now... #
0:50:20 > 0:50:25We look for good rental returns and that tends to be the one or two bedroom flats
0:50:25 > 0:50:28rather than houses, you get a better rental return.
0:50:28 > 0:50:31And we are playing it very, very safe in this market.
0:50:31 > 0:50:35# You can count the days but does it all add up to you...? #
0:50:35 > 0:50:38Not only was this place safe but it was a sure bet,
0:50:38 > 0:50:41with a potentially staggering rental yield.
0:50:41 > 0:50:44But the flat didn't come without issues - there was a nasty case
0:50:44 > 0:50:50of damp which Ray believed to be caused by an exterior leaking pipe.
0:50:52 > 0:50:57It's been just three weeks and now we're back to see if the damp issue
0:50:57 > 0:50:58has been resolved.
0:50:58 > 0:51:01Today's weather should be a pretty good test.
0:51:03 > 0:51:05# I can't stand the rain
0:51:05 > 0:51:07# Against my window... #
0:51:13 > 0:51:19Not only has the damp been sorted but there's a brand new fitted kitchen.
0:51:21 > 0:51:24# Our sunshine has come... #
0:51:24 > 0:51:29The lemon decor in the bedroom has been washed away
0:51:29 > 0:51:33with a clean, magnolia paint and newly fitted carpet
0:51:33 > 0:51:36which extends through the rest of the flat.
0:51:38 > 0:51:40# No more rain in this cloud... #
0:51:40 > 0:51:46The damp did cause a lot of mould and we did have to have drying facilities.
0:51:46 > 0:51:49It took us ten days to dry the flat out completely.
0:51:49 > 0:51:55It had obviously been left for years to spread throughout the flat but that's resolved.
0:51:55 > 0:51:58Other than that, it was very straightforward.
0:51:58 > 0:52:02We wouldn't have done it so quickly if there'd been any major issues.
0:52:02 > 0:52:06In just under three weeks, nearly everything was changed.
0:52:06 > 0:52:09There are new windows, the doors have been replaced
0:52:09 > 0:52:13and the bathroom, which isn't quite finished,
0:52:13 > 0:52:16already looks a million times better than it did.
0:52:16 > 0:52:18# My sunshine has come... #
0:52:19 > 0:52:23Well, as you can see, we've totally redecorated it throughout.
0:52:23 > 0:52:26There was a horrible pink, flaky wall.
0:52:26 > 0:52:32We put in new kitchen units, new worktop, retiled completely and, if you remember,
0:52:32 > 0:52:38there was horrendous damp in that corner which spread throughout the house so we've rectified that.
0:52:38 > 0:52:44New lino. It's not a huge kitchen but for a one-bedroom flat, I think it's quite nice.
0:52:44 > 0:52:47'Doesn't look bad at all. Ray hoped to have the flat ready
0:52:47 > 0:52:51'to rent in four weeks so he's ahead of schedule.
0:52:51 > 0:52:53'How are the finances looking?'
0:52:53 > 0:52:57We haven't had every single bill in yet, obviously, it being this quick
0:52:57 > 0:53:05but we're anticipating the actual refurbishment cost will probably be 6,000 to 6,200.
0:53:05 > 0:53:09If you include other costs like solicitors' fees,
0:53:09 > 0:53:13auction admin fees, the whole lot will be under £7,000.
0:53:13 > 0:53:15Bang on budget as well.
0:53:15 > 0:53:20Ray has already got people interested in renting the flat from him.
0:53:20 > 0:53:27Our offer is 425 at the moment, so that would give us a yield - an incredible yield -
0:53:27 > 0:53:33just short of 13 % which you can't sniff at in this day and age.
0:53:34 > 0:53:38Absolutely, but Ray's ignoring this great rental return
0:53:38 > 0:53:41and instead is going to put it on the market.
0:53:41 > 0:53:44We're hoping to actually make a really good profit.
0:53:44 > 0:53:48We'll wait till what the estate agents say they feel it's worth.
0:53:48 > 0:53:52If the valuation is below what we have in our own mind,
0:53:52 > 0:53:56then we will just let it out because at that sort of yield,
0:53:56 > 0:53:58it's not worth selling it cheaply
0:53:58 > 0:54:02but if we can get what I hope to get for it, then it would put
0:54:02 > 0:54:05money straight back in the bank and allow us perhaps to go and buy
0:54:05 > 0:54:07two flats from the purchase sale of one.
0:54:07 > 0:54:12Well, this is a business after all and if anyone has a finger
0:54:12 > 0:54:15on the pulse of the current market, it's mortgage adviser Ray.
0:54:15 > 0:54:19But despite getting this place for a bargain 34,000 and spending
0:54:19 > 0:54:26just under 7,000 refurbishing it, I'm really not sure of Ray will get the resale figure he's after.
0:54:26 > 0:54:31Let's hear what two local estate agents think.
0:54:34 > 0:54:37I like the flat. It's presented well, it's very fresh, clean
0:54:37 > 0:54:40and very tidy. And the kitchen in particular
0:54:40 > 0:54:42is a big bonus.
0:54:45 > 0:54:48The modern, clean look with magnolia walls and white woodwork
0:54:48 > 0:54:52is what's required for rental or sales markets.
0:54:52 > 0:54:55But which is most favourable?
0:54:55 > 0:54:57Absolutely for the rental market right now.
0:54:57 > 0:55:00The first-time buyers' market is pretty much null and void
0:55:00 > 0:55:03due to mortgage lending. The rental market's doing well.
0:55:03 > 0:55:07It is quite a struggle in the sales so I'd recommend renting
0:55:07 > 0:55:11the property out, possibly £425 per calendar month.
0:55:11 > 0:55:14I would recommend £400 per calendar month.
0:55:14 > 0:55:19The 425 is accurate because we already have an offer on at 425,
0:55:19 > 0:55:21and from my point of view, that's excellent.
0:55:21 > 0:55:27So, as Ray worked out, £425 per calendar month would give him
0:55:27 > 0:55:34and his business partner a cracking 13% yield - an annual income of just over £5,000.
0:55:34 > 0:55:37Are the resale figures as impressive?
0:55:37 > 0:55:41It sounds quite harsh but if we were to market the property for sale,
0:55:41 > 0:55:43I'd say offers in the region of £50,000.
0:55:43 > 0:55:47I would recommend no more than £49,950.
0:55:47 > 0:55:49A little low.
0:55:49 > 0:55:54We're putting it on the market for £62,500.
0:55:54 > 0:55:56Probably trying to get 60,000.
0:55:56 > 0:56:02Not quite the resale estimates Ray was hoping for but at least
0:56:02 > 0:56:05he has the rental option as a very sound back-up.
0:56:05 > 0:56:08I really don't think he can lose with this one.
0:56:10 > 0:56:12I'm glad I bought it to be quite honest.
0:56:12 > 0:56:20Even at 50,000, that still gives us a 20% return.
0:56:20 > 0:56:2255 would give us somewhere in the region
0:56:22 > 0:56:25of 35% return, and on my valuation, it gives us 50% return
0:56:25 > 0:56:30so you can't complain at any one of those figures.
0:56:30 > 0:56:33# I can't complain... #
0:56:33 > 0:56:39Since filming, Ray's reduced the asking price of the flat to just under £60,000
0:56:39 > 0:56:44but still there was no interest so it's back to plan A, and he's going to rent it out.
0:56:48 > 0:56:51It's the end of the road for the buyers on today's programme
0:56:51 > 0:56:53but there are plenty more where they came from.
0:56:53 > 0:56:57For your chance to see what happens, join us next time on Homes Under The Hammer.
0:56:57 > 0:56:59- See you then.- Goodbye.- Goodbye.
0:57:16 > 0:57:19Subtitles by Red Bee Media Ltd
0:57:19 > 0:57:22E-mail subtitling@bbc.co.uk