0:00:02 > 0:00:05- Hello and welcome.- Property auctions used to be for builders
0:00:05 > 0:00:07and developers, but not any more.
0:00:07 > 0:00:11All kinds of people are going to auction to find what they're looking for.
0:00:11 > 0:00:16Yes, and even in these tough times, they are still finding bargains under the hammer.
0:00:41 > 0:00:48Even for experienced buyers, auctions can be nerve-racking and exciting places.
0:00:48 > 0:00:53- But it's very important not to get carried away.- So did today's buyers keep a cool head?
0:00:53 > 0:00:56Did they get some great deals? Here's what they bid for.
0:00:57 > 0:01:02'This village in Wiltshire is picturesque but far from peaceful.'
0:01:02 > 0:01:06We are terribly close to the runway.
0:01:06 > 0:01:12'I've got grand plans to knock down walls and open the space in this Notting Hill flat.'
0:01:12 > 0:01:17I think that would really give this flat a bit of oomph.
0:01:17 > 0:01:23'And in this terrace near Telford, I've uncovered some hidden features.'
0:01:23 > 0:01:27Oh, joy or joys, even more of these original floorboards.
0:01:28 > 0:01:31'All these properties have been sold at auction.
0:01:31 > 0:01:37'We'll find out who bought them and what they paid for them when they went under the hammer.'
0:01:44 > 0:01:49'Welcome to Wiltshire, where I'm in the quaint country village of Bradenstoke.'
0:01:52 > 0:01:56At first glance, Bradenstoke may look to be a nice, quiet Wiltshire village,
0:01:56 > 0:02:00but oh, no, it isn't, because it adjoins RAF Lyneham,
0:02:00 > 0:02:04one of the busiest operational air bases in the UK.
0:02:10 > 0:02:15The good news is that there's lots of RAF personnel looking to rent places,
0:02:15 > 0:02:18so this property that was up for auction could be ideal.
0:02:18 > 0:02:23Four bedrooms and a guide price of £175,000. Let's take a look.
0:02:24 > 0:02:27'The priority here would be to install double glazing.
0:02:29 > 0:02:32'Noisy neighbours can be a nuisance,
0:02:32 > 0:02:37'but there's not much chance of the RAF keeping their noise down.'
0:02:38 > 0:02:42Built in the 1970s, and it feels like that straight away.
0:02:42 > 0:02:46Apparently, the same family lived in this house since it was built.
0:02:46 > 0:02:49You've got a little entrance area there, very practical.
0:02:49 > 0:02:52This, I suppose, is your dining room.
0:02:52 > 0:02:55Er, yeah, lino floor tiles. Love it.
0:02:55 > 0:03:00'You might say this property has a chequered past.'
0:03:00 > 0:03:02# Check, check, check, check, check it out
0:03:02 > 0:03:04# What, what, what, what's it all about?
0:03:04 > 0:03:06# Check, check, check, check, check it out
0:03:06 > 0:03:10'The kitchen units are dated and ready for renewal,
0:03:10 > 0:03:14'as is the boiler. I do love the size, though.
0:03:14 > 0:03:16'The kitchen is huge.'
0:03:16 > 0:03:21Straight away, I'm thinking this is a very practical and big house.
0:03:21 > 0:03:26I mean, it goes on back through here to the living room.
0:03:26 > 0:03:30And, again, loads of space. Big fireplace there.
0:03:30 > 0:03:33Do you like that or not? I don't know. It's a feature.
0:03:33 > 0:03:38You've got patio doors out onto a little patio area there.
0:03:38 > 0:03:42And, you know, you can't complain about the space, can you?
0:03:42 > 0:03:45# I never complain
0:03:46 > 0:03:49# It doesn't get you anywhere
0:03:51 > 0:03:57'The fireplace has been built from stone and slate from the cottage which used to be on the site.
0:03:59 > 0:04:02'Let's take a look up top.'
0:04:03 > 0:04:10So, upstairs, a reasonable size family bathroom and then four really good size bedrooms.
0:04:10 > 0:04:12It is a perfect family home.
0:04:12 > 0:04:15In terms of decoration, well, it could do with being spruced up,
0:04:15 > 0:04:18but I'm not seeing anything that scared me too much.
0:04:18 > 0:04:24Apart from the fact that we are terribly close to the runway.
0:04:24 > 0:04:26# I wish that I could fly
0:04:26 > 0:04:30# Up to the sky, so very high
0:04:32 > 0:04:35'The four big bedrooms are certainly colourful,
0:04:35 > 0:04:41'but redecoration rather than renovation is what this place needs.
0:04:41 > 0:04:45'The large reception rooms, family-sized kitchen,
0:04:45 > 0:04:49'plus that handy porch,
0:04:49 > 0:04:54'perfect for throwing off muddy boots and rain-soaked jackets after a day out in the countryside,
0:04:54 > 0:04:58'mean this property has the potential to be an ideal family home.'
0:04:58 > 0:05:01# Oh, oh, oh, yeah
0:05:06 > 0:05:09So, it's all looking good so far. And, at the front of the property,
0:05:09 > 0:05:12a nice, big garden.
0:05:13 > 0:05:17Problem is, it's not yours. That's been sold off separately, and it gets worse,
0:05:17 > 0:05:21because planning permission has been granted for the building of a house there.
0:05:21 > 0:05:28How horrible is that? Right overlooking your property. Not only the construction and mess and noise,
0:05:28 > 0:05:31when it's built, they're overlooking your property.
0:05:31 > 0:05:35Another issue, this driveway is a shared access,
0:05:35 > 0:05:38so lots of issues with that.
0:05:38 > 0:05:41Mm, bit of a negative, I'm afraid.
0:05:41 > 0:05:47'The downsides of this house are the building plot and the noise from the RAF base.
0:05:47 > 0:05:53'On the up side are the spacious rooms and the fact that no major structural work is needed.
0:05:53 > 0:05:58'I invited a local estate agent to let fly with his opinions.'
0:06:01 > 0:06:03RAF Lyneham is on the doorstep.
0:06:03 > 0:06:07Obviously, the main cons are aircraft noise,
0:06:07 > 0:06:11which does have a detrimental effect. It narrows down your market.
0:06:11 > 0:06:14Chances are, if people are looking in Bradenstoke as an area,
0:06:14 > 0:06:19they are OK with the air noise and with the air base being in such close proximity.
0:06:19 > 0:06:22The options with regards to the garden
0:06:22 > 0:06:27would be to knock the double garage down at the side and then re-turf the area,
0:06:27 > 0:06:31seed the area, then you'd have a decent family-size garden.
0:06:32 > 0:06:36'The auction guide price for this property was £175,000.
0:06:36 > 0:06:39'After a minimal renovation has been done,
0:06:39 > 0:06:42'what could the sale value of this place be?'
0:06:44 > 0:06:48I would expect to market this property at £250,000,
0:06:48 > 0:06:51that's taking into account the stamp-duty threshold.
0:06:52 > 0:06:55'And rental income?'
0:06:55 > 0:06:58The property is an ideal rental property.
0:06:58 > 0:07:02We get a lot of families moving to Bradenstoke that are affiliated with the air base.
0:07:02 > 0:07:07I would expect to rent this property for £750 per calendar month.
0:07:12 > 0:07:15So, two main issues with this property.
0:07:15 > 0:07:19One, the noisy neighbour on one side, RAF Lyneham,
0:07:19 > 0:07:21and two, the potential new noisy neighbour
0:07:21 > 0:07:25when they've developed the building plot. That really is in your face.
0:07:25 > 0:07:29However, it is a lot of house for the money and it would make a great family home.
0:07:29 > 0:07:32So let's see who went for it when it went under the hammer.
0:07:34 > 0:07:37180 somebody, please. Start me.
0:07:37 > 0:07:41175. We'll start at the guide price of 175. And 5, shall we?
0:07:41 > 0:07:45180 now. I'll take 2. At £180,000.
0:07:45 > 0:07:472 please may I see? 182.
0:07:47 > 0:07:51At 182. 5. 185, OK. Now 7 may I see?
0:07:51 > 0:07:53187, OK. 190.
0:07:53 > 0:07:57At £187,000. 190, sir?
0:07:57 > 0:08:00190, OK. Over there at £190,000.
0:08:00 > 0:08:03Dragging it out. 192, OK.
0:08:03 > 0:08:084 to you, sir? Yes, 194. At £194,000, the bid is on the far side at 194.
0:08:08 > 0:08:13It's going to be sold. At £194,000 for the first time.
0:08:13 > 0:08:17£194,000 on the right for the second time.
0:08:17 > 0:08:21And £194,000 over there, third and last time.
0:08:21 > 0:08:27'The successful bid of £194,000 came from Laura, an accountant,
0:08:27 > 0:08:31'and her husband Stephen, who's a finance manager.
0:08:34 > 0:08:39'And leading his mum up the garden path is their two-year-old son, Isaac.
0:08:39 > 0:08:44'Laura has also brought her sister, Claire, to look around their new acquisition.'
0:08:48 > 0:08:52- Laura, Claire, nice to meet you. Congratulations.- Thank you.
0:08:52 > 0:08:57- Why did you want to buy the place? - It's just a bigger house for the family.
0:08:57 > 0:09:02- So it's for you, then.- Yes, it's going to be our family home.- Why here as opposed to anywhere else?
0:09:02 > 0:09:05It's next door to where my mum and dad lived
0:09:05 > 0:09:09when they were first married and when I was a baby, which is why we came to look at this house.
0:09:09 > 0:09:14We saw it advertised and thought, out of interest, we'd come and have a look, came in and loved it.
0:09:14 > 0:09:19- What did you think when you walked in?- Overwhelmed by the space compared to our house.
0:09:19 > 0:09:22And then just the potential, what we can do.
0:09:22 > 0:09:25Right. Claire, what did you think when you walked in?
0:09:25 > 0:09:30It's just massive. It's fantastic. Compared to what you've got at the moment,
0:09:30 > 0:09:32for the family, it's just a great family house.
0:09:32 > 0:09:37- Right. Tell me about the family. - I've got two boys aged five and two.
0:09:37 > 0:09:41- Chaos.- Yes! Lots of toys.
0:09:41 > 0:09:44So, yeah, just tripping over everything in our current house.
0:09:44 > 0:09:47What kind of house have you got at the moment?
0:09:47 > 0:09:49It's just a small three-bed end-terrace.
0:09:49 > 0:09:55- But our youngest, his bedroom is smaller than the porch here. - Smaller than the porch?- Yes.
0:09:55 > 0:09:59THEY LAUGH So even walking in the porch, it's like, "Wow!"
0:09:59 > 0:10:03- So have they seen it yet? - Yes. They're very excited.
0:10:03 > 0:10:06- Are they? What are their names? - Harry and Isaac.- Right.
0:10:06 > 0:10:10- What do they think? - They love it. Looking forward to being able to move in
0:10:10 > 0:10:15and have a bedroom that you can put more than one toy in. HE LAUGHS
0:10:15 > 0:10:22So, you obviously know this area. We're very close to RAF Lyneham. You can hear the planes at the moment.
0:10:22 > 0:10:25- Does that concern you?- No. We've lived in this area all our lives,
0:10:25 > 0:10:29- so we don't even really notice the planes.- Right.
0:10:29 > 0:10:31- You don't notice it any more.- No.
0:10:31 > 0:10:34- You just don't hear it?- No. - We're pretty much oblivious to it.
0:10:37 > 0:10:40'Laura's not concerned about the planes overhead,
0:10:40 > 0:10:45'but as she's an accountant, is she worried about her overheads going sky high?'
0:10:47 > 0:10:50What kind of budget have you set aside for the work?
0:10:50 > 0:10:55Erm, I don't know the overall budget, cos at the moment, we've only looked into the kitchen,
0:10:55 > 0:10:59so probably about £5,000 for the kitchen.
0:11:01 > 0:11:05I'm not sure about the bathrooms yet, so I don't know what the top whack is.
0:11:05 > 0:11:09- We'll worry about it when we have to pay for it.- Right.
0:11:09 > 0:11:13- Slightly interesting approach. - Vague! THEY LAUGH
0:11:15 > 0:11:17'Considering Laura's an accountant,
0:11:17 > 0:11:21'it's surprising that her budget is vague.
0:11:21 > 0:11:25'But they didn't buy this property as an investment, it's to be their new home.
0:11:25 > 0:11:29'Laura plans to work on the house while all the family live here.'
0:11:30 > 0:11:37So, talk me through, project by project, what you're going to do to the place. What's the plan?
0:11:37 > 0:11:39Well, our first major job will be the kitchen.
0:11:39 > 0:11:43Completely take it out, cos it's so lovely.
0:11:43 > 0:11:47And then we're probably going to knock the archway out
0:11:47 > 0:11:50so the kitchen and dining room are more open,
0:11:50 > 0:11:53just so it's a big, family, light area.
0:11:53 > 0:11:57And then, eventually, section off part of the garage to be a play room.
0:11:57 > 0:12:00- Oh, really? You need more space? - THEY LAUGH
0:12:00 > 0:12:03- Another room for the kids? - Yeah. For all the toys.
0:12:04 > 0:12:08'It appears that young Isaac has already chosen his new bedroom,
0:12:08 > 0:12:12'and he's tickled pink about it.'
0:12:12 > 0:12:14Oh, wow!
0:12:17 > 0:12:22'What does his mum, Laura, think about the proposed building work outside?'
0:12:23 > 0:12:27- Are you aware of the building plot? - Yeah, we did a lot of research into that
0:12:27 > 0:12:31before we decided to go for the house and looked at all the plans
0:12:31 > 0:12:35and came back here with the plans so we knew what was going to be where.
0:12:35 > 0:12:41- We decided that our view, at the moment, is houses, another one won't make much difference.- Not an issue.
0:12:41 > 0:12:44- Not an issue at all.- Congratulations, I'm delighted for you.- Thank you.
0:12:44 > 0:12:47We look forward to seeing how you get on.
0:12:51 > 0:12:56Well, there's no doubt this will make a fantastic home for Laura and her family.
0:12:56 > 0:12:59However, doing up a place while you live in it,
0:12:59 > 0:13:02especially with young children, is always going to be a challenge.
0:13:02 > 0:13:07And there is the uncertainty of that building plot and how that's going to turn out.
0:13:07 > 0:13:11You can find out how they all get on later in the show.
0:13:14 > 0:13:18'I'm in the fashionable area of Notting Hill in West London.
0:13:18 > 0:13:21'Famed for its Victorian architecture and annual carnival,
0:13:21 > 0:13:24'it's now an up-market residential area.'
0:13:29 > 0:13:33Well, I have just had a tour round this part of London.
0:13:33 > 0:13:37Sadly, I didn't bump into Hugh Grant, but it's a great area,
0:13:37 > 0:13:40and transport links couldn't be better here.
0:13:40 > 0:13:42Now, the last flat to sell on that road
0:13:42 > 0:13:46went for a staggering £465,000.
0:13:46 > 0:13:51The flat I'm here to see today had a guide of just £300,000!
0:13:51 > 0:13:56Now, I know what you're thinking. You're imagining a vast, palatial apartment
0:13:56 > 0:14:00with all the impressive trimmings. Well, no.
0:14:00 > 0:14:03It's a one-bedroom flat with no outside space.
0:14:03 > 0:14:08Let's go inside and see what you get for all that money.
0:14:10 > 0:14:14'Well, this is West London, and property doesn't come cheap here.
0:14:14 > 0:14:20'However, this Victorian terraced house is absolutely stunning and the building looks well maintained.
0:14:20 > 0:14:24'It's a little difficult to get a look at the exterior of the flat I'm here to see, though,
0:14:24 > 0:14:27'as it's on the third floor.'
0:14:33 > 0:14:37Whatever this flat is like, I am so blinded by the fact
0:14:37 > 0:14:40I've had to walk up so many flights of stairs.
0:14:40 > 0:14:44Well, good job it's worth it because, straight away, it's quite light,
0:14:44 > 0:14:50you've got a lovely big room there with a nice feature window, little landing space with a bathroom there
0:14:50 > 0:14:52and a really good size kitchen
0:14:52 > 0:14:56with a nice window, again. It's all painted white, it's bright.
0:14:56 > 0:15:00Let's have a look through here, give me time to get my breath back.
0:15:00 > 0:15:03# Blinded by the light
0:15:03 > 0:15:07# Revved up like a Deuce, another runner in the night
0:15:07 > 0:15:10'There's lots of space up here, with the bedroom at the back
0:15:10 > 0:15:14'and the kitchen and living room at the front. There are no windows in the bathroom,
0:15:14 > 0:15:17'but the suite looks new and may not need changing.
0:15:17 > 0:15:20'Not bad so far. But I think it could be better.'
0:15:23 > 0:15:27What we have here is a beautiful feature window, but there's another one next door.
0:15:27 > 0:15:31What about taking this wall out, it's only a stud partition,
0:15:31 > 0:15:34and really opening this space up?
0:15:34 > 0:15:39One big, huge, impressive room to walk into when you've walked up three flights of stairs.
0:15:39 > 0:15:44You know, this could be a big wow factor. You could put the kitchen in here,
0:15:44 > 0:15:49there's enough room for a dining table, a nice, squashy sofa. You're in Notting Hill!
0:15:49 > 0:15:54I think that would really give this flat the bit of oomph that it lacks at the moment.
0:15:54 > 0:16:00'The communal stairway that leads to the flat is currently being used for storage,
0:16:00 > 0:16:04'so the new owner will want to ensure that it's kept tidy in the future.
0:16:08 > 0:16:10'So, for a guide price of £300,000,
0:16:10 > 0:16:13'was this one-bedroom flat a good investment?
0:16:13 > 0:16:16'I asked a local estate agent to put me in the picture.'
0:16:20 > 0:16:23It's a lovely flat and there's a lot of benefits with it.
0:16:23 > 0:16:25Overall, it's a big space. It's nice and deep.
0:16:25 > 0:16:29You've got high ceilings, which is quite rare for this floor.
0:16:29 > 0:16:34The communal areas you would look to smarten up. You could speak to the freeholder,
0:16:34 > 0:16:37see if you can get an agreement to repaint and re-carpet at his cost,
0:16:37 > 0:16:42because if you're going for a full price in the market, first impressions count.
0:16:42 > 0:16:46I would've thought, to really maximise the value and get the most from the market,
0:16:46 > 0:16:49you'd really need to be spending in the region of £30,000.
0:16:49 > 0:16:54'Once refurbished, how much could this flat fetch on the rental market?'
0:16:54 > 0:16:59The rental market's strong at the moment. This apartment coming onto the market,
0:16:59 > 0:17:04refurbished to a good standard, you'd expect it to achieve £1,950 a month.
0:17:04 > 0:17:07'And if sold on?'
0:17:07 > 0:17:10I think, in today's market, if the flat gets refurbished well,
0:17:10 > 0:17:16you'd be looking to bring it to the market somewhere in the region of £425,000
0:17:16 > 0:17:20with a view to achieving maybe £410,000, £415,000.
0:17:20 > 0:17:25Right location, great transport links and an attractive flat.
0:17:25 > 0:17:28This auction lot has it all. But it came at a price.
0:17:28 > 0:17:32Let's find out who had the funds as we go to auction.
0:17:34 > 0:17:39Great location. Very fashionable area.
0:17:39 > 0:17:41I don't know, 300?
0:17:41 > 0:17:44300. 301. 302.
0:17:44 > 0:17:47305. 310.
0:17:47 > 0:17:49315.
0:17:49 > 0:17:52320. 321.
0:17:52 > 0:17:55325. 326.
0:17:55 > 0:17:58327. 330.
0:17:58 > 0:18:01331. 332.
0:18:03 > 0:18:06335. 336.
0:18:06 > 0:18:07340.
0:18:07 > 0:18:10Oh, someone else. 341. Someone else has come in.
0:18:10 > 0:18:13341. 342.
0:18:13 > 0:18:16343. 344.
0:18:16 > 0:18:18345. 346.
0:18:18 > 0:18:22347. 348. 349.
0:18:22 > 0:18:24350. 351.
0:18:24 > 0:18:26352. 353.
0:18:26 > 0:18:29354. 355.
0:18:29 > 0:18:33356. 357. 358.
0:18:33 > 0:18:36359. 360.
0:18:36 > 0:18:38361. 362.
0:18:38 > 0:18:41One more go. 363.
0:18:41 > 0:18:44362, first time.
0:18:44 > 0:18:47Second time. Third and last time, are we all done?
0:18:47 > 0:18:50Sold, 362.
0:18:52 > 0:18:55'With their bid of £362,000,
0:18:55 > 0:18:59'the new owners are restaurateurs-cum-developers Simon and Joy.
0:19:01 > 0:19:04'I met them back at the flat to talk over their plans.'
0:19:06 > 0:19:08Simon and Joy, congratulations.
0:19:08 > 0:19:12I love this part of Notting Hill. I think you've got a great buy here.
0:19:12 > 0:19:14Why did you want to buy this property?
0:19:14 > 0:19:17Because it's Notting Hill, it's a lovely area,
0:19:17 > 0:19:20and we were lucky enough to get it at a reasonable price.
0:19:20 > 0:19:22It's a beautiful building.
0:19:22 > 0:19:25Unfortunately, there aren't many features left in here.
0:19:25 > 0:19:31But it's how big it is for a one-bedroom flat.
0:19:31 > 0:19:35The sash windows, the tall ceilings. Everyone's dream, I suppose.
0:19:35 > 0:19:38I think the good thing about this flat is the bones of it are fantastic.
0:19:38 > 0:19:42You've got the space, the high ceilings. You can put the features back.
0:19:42 > 0:19:47You could put some beautiful cornicing here, some ceiling roses. It would look amazing.
0:19:47 > 0:19:52So what are you planning on doing to this property to make it even better?
0:19:52 > 0:19:57Because of the area and because of the value of the property,
0:19:57 > 0:19:59we're looking to do it to quite a high spec.
0:19:59 > 0:20:07So, first of all, we're going to make the kitchen into another bedroom, so it's a two-bedroom flat.
0:20:07 > 0:20:12- OK.- We've done our research, and I think that's the best way forward to secure the price we want.
0:20:12 > 0:20:17'So Joy and Simon are converting this flat into a two-bedroom property
0:20:17 > 0:20:21'and Joy seems confident that this will give them a higher sale value.'
0:20:22 > 0:20:28Have you researched that you will definitely get more money if you market this as a two-bedroom flat?
0:20:28 > 0:20:32We've researched that, as a one-bedroom flat,
0:20:32 > 0:20:38we could probably hope to achieve about 430, between 430 and 440.
0:20:38 > 0:20:43But as a two-bedroom, it would probably reach the bottom end of the two-bedrooms, cos it's quite small,
0:20:43 > 0:20:45but we would hope to reach about 450.
0:20:45 > 0:20:50OK. So it's definitely worth it financially just to squeeze the extra bedroom in.
0:20:50 > 0:20:53The only problem with that, in my mind, is that second bedroom
0:20:53 > 0:20:57will be a little bit of an odd space because you'll have to put the bed
0:20:57 > 0:21:00- under the window, won't you?- Yes.
0:21:00 > 0:21:04It's still big enough for a double. It's a good size double bedroom still,
0:21:04 > 0:21:07even though a bit of the bed will be under the window.
0:21:07 > 0:21:11- OK. So where's the kitchen going to go? - We're moving it into the lounge.
0:21:11 > 0:21:16We're going to make a U-shaped kitchen from probably about a third of the space in there,
0:21:16 > 0:21:19so it still leaves a fair bit of space for people to relax.
0:21:19 > 0:21:25- And, hopefully, that'll look nice. - What sort of kitchen is it going to be?
0:21:25 > 0:21:30We're probably going to go for a high-gloss white, stainless-steel handles,
0:21:30 > 0:21:33possibly a wooden worktop.
0:21:35 > 0:21:40- We'll put a range oven in there on the back wall.- A big range oven?
0:21:40 > 0:21:43It's just under a metre, so it does fit.
0:21:43 > 0:21:48- Hm.- If you're putting a kitchen into a lounge, then you do want to make it the centre of attention,
0:21:48 > 0:21:52you want to make it look good. You don't want a horrible, free-standing...
0:21:52 > 0:21:56Do you think the person buying this flat is going to be doing an awful lot of cooking?
0:21:56 > 0:22:01Erm, we're in a recession now, so people spend a bit more time at home
0:22:01 > 0:22:03so maybe they'll spend more time cooking at home.
0:22:03 > 0:22:08That's you, the chef! Mr Restaurant! That'll be exactly what you're doing!
0:22:08 > 0:22:10That's very true.
0:22:10 > 0:22:15'I see his point. But my fear is they might be squeezing too much
0:22:15 > 0:22:17'into a small space to maximise profit.
0:22:17 > 0:22:20'I do hope it works.'
0:22:20 > 0:22:22So what's your budget to spend here?
0:22:22 > 0:22:26Erm, we've done the figures. £15,000.
0:22:26 > 0:22:30- OK. - Which is quite a substantial budget.
0:22:30 > 0:22:37However, we want to do everything from stainless-steel light switches to...every last detail.
0:22:37 > 0:22:39You thinking of changing the bathroom?
0:22:39 > 0:22:45No. The bathroom, when we looked at the flat, it had just been recently redone,
0:22:45 > 0:22:48so I don't really see a necessity to redo the bathroom.
0:22:48 > 0:22:51I think it's unnecessary cost.
0:22:51 > 0:22:56We will re-tile in there and cosmetically change it, maybe change the colour in there,
0:22:56 > 0:22:58but that's about all.
0:22:58 > 0:23:02So are your plans to sell or to rent?
0:23:02 > 0:23:05Our initial plan is to sell.
0:23:05 > 0:23:09If we don't sell it quickly, we might reconsider. We'd like to sell.
0:23:09 > 0:23:13Well, guys, good luck. It's going to be really exciting seeing what you do here.
0:23:13 > 0:23:16It's been lovely meeting you today. Well done.
0:23:16 > 0:23:18- Thank you.- Thank you.
0:23:18 > 0:23:23Will Simon and Joy go for my idea or will they turn this into a two-bedroom flat
0:23:23 > 0:23:25and try and maximise their profits?
0:23:25 > 0:23:31You know, a modest budget of £15,000 may not be enough to achieve a top resale price,
0:23:31 > 0:23:34forcing them to rent this property out.
0:23:34 > 0:23:38You can find out how they both get on with this later on in the programme.
0:23:39 > 0:23:44'Coming up, this terraced house near Telford has a surprise in store out back.'
0:23:44 > 0:23:49Quite unusual for a terrace to have such a large garden. Lovely.
0:23:49 > 0:23:53'Did chef Simon and wife Joy bite off more than they could chew
0:23:53 > 0:23:56'with this renovation in Notting Hill?'
0:23:56 > 0:24:01Every now and again, you'll have a sleepless night. You see the bank balance go down.
0:24:01 > 0:24:06'But first, we return to Wiltshire to see if Laura's family like their big, new home.'
0:24:06 > 0:24:08It's great for the family.
0:24:08 > 0:24:10Just having room, it's nice.
0:24:17 > 0:24:20'We're back in the village of Bradenstoke.
0:24:23 > 0:24:26'It's certainly picturesque, but far from peaceful.
0:24:31 > 0:24:35'RAF Lyneham is a stone's throw to the south.
0:24:37 > 0:24:40'I viewed this four-bedroom house in the village.
0:24:40 > 0:24:45'It was built in the 1970s on the site of an old cottage.
0:24:46 > 0:24:53'The property had been well maintained, but its 1970s interior design had never been updated.
0:24:55 > 0:24:59'The living room had an imposing stone fireplace
0:24:59 > 0:25:03'built using materials salvaged from the original cottage.
0:25:04 > 0:25:08'Laura and Stephen had bought the place to be a family home for themselves
0:25:08 > 0:25:11'and their two sons.
0:25:11 > 0:25:15'I'd met Laura, along with her youngest son, Isaac, and her sister, Claire.
0:25:15 > 0:25:20'On her first viewing, Laura had been struck with the size of the rooms.'
0:25:21 > 0:25:26We saw it advertised and thought, out of interest, we'd have a look, came in and loved it.
0:25:26 > 0:25:32- Our youngest, his bedroom is smaller than the porch here. - Smaller than the porch?- Yes.
0:25:32 > 0:25:36So even walking in the porch, it's like, "Wow!"
0:25:39 > 0:25:42'Two-year-old Isaac was quick to claim his bedroom.'
0:25:42 > 0:25:44Oh, wow!
0:25:44 > 0:25:46'We've returned after six months
0:25:46 > 0:25:50'to see if the renovation has taken flight or if it's all up in the air,
0:25:50 > 0:25:54'and whether the family have settled into their new home.'
0:25:57 > 0:26:00# Happy home
0:26:00 > 0:26:02# Let's turn a house into a happy home
0:26:03 > 0:26:08'In fact, Laura, husband Stephen, son Harry and little brother Isaac
0:26:08 > 0:26:11'all moved in soon after our first visit.
0:26:12 > 0:26:16'Top of Laura's to-do list was the kitchen.'
0:26:16 > 0:26:20# Happy home
0:26:20 > 0:26:21# Let's turn a house into a happy home
0:26:21 > 0:26:25# Happy home
0:26:25 > 0:26:31'The seventies look has been banished to be replaced by contemporary cool.
0:26:31 > 0:26:35'It's certainly high-quality work.'
0:26:35 > 0:26:40- We did quite a lot of it ourselves. Well, I project-managed. - She project-managed.
0:26:40 > 0:26:45Luckily, we've got friends and family that are good at kitchen-fitting, plumbing, tiling.
0:26:45 > 0:26:50We kind of invited my brother-in-law down for the weekend and he's a carpenter,
0:26:50 > 0:26:54so he and I put the kitchen in whilst we got rid of the children for the day.
0:26:54 > 0:26:59All the decorating, I've done, inside and most of the out.
0:26:59 > 0:27:05We were lucky. We know people who've helped us out, so about 75 percent we've done ourselves.
0:27:07 > 0:27:12'They've opened up the archway that separated the dining area from the kitchen,
0:27:12 > 0:27:15'creating an open-plan family living area.
0:27:18 > 0:27:23'What was it like living in the house while the work's been going on?'
0:27:23 > 0:27:26Challenging at times.
0:27:27 > 0:27:31- Just trying to make do with what... - Day care helps.- Yeah.
0:27:31 > 0:27:34Trying to cope with the rubbish kitchen that we had
0:27:34 > 0:27:36and then not having a bathroom for a week,
0:27:36 > 0:27:39as you can imagine, with children, was fun.
0:27:43 > 0:27:47'The living room has been re-carpeted and redecorated.
0:27:49 > 0:27:52'The couple decided to keep the feature fireplace,
0:27:52 > 0:27:55'giving the property a link with its country-cottage past.
0:27:56 > 0:28:01'Upstairs, the bathroom was given a modern makeover.
0:28:12 > 0:28:15'The bedrooms have been redecorated.
0:28:16 > 0:28:19'Laura and Stephen chose warm, cosy colours.
0:28:23 > 0:28:25'Five-year-old Harry picked blue.
0:28:27 > 0:28:29'And Isaac picked red.
0:28:31 > 0:28:34'So I guess he changed his mind about the pink room.
0:28:37 > 0:28:41'That is now a study for Laura and Stephen.
0:28:43 > 0:28:47'So, how are the family enjoying their new home?'
0:28:47 > 0:28:49It's great for the family.
0:28:49 > 0:28:53The space is amazing. The kids can play in their rooms, have their toys out.
0:28:53 > 0:28:59It's made a big difference to Isaac, cos he didn't really have a room, he just had a bed and that was it.
0:28:59 > 0:29:05Harry's always had a bit of space but, obviously, Isaac's flourished because of it.
0:29:11 > 0:29:14'While Isaac enjoys more space to play in,
0:29:14 > 0:29:18'could there be trouble ahead with the building plot out the front?'
0:29:18 > 0:29:23We have met the builders. They seem very pleasant. They've been very helpful,
0:29:23 > 0:29:27shown us all the plans, told us what's happening at any point,
0:29:27 > 0:29:33so we haven't got any problems at the moment and just wait to see how the planning permission goes.
0:29:33 > 0:29:36It's not a concern to us, really.
0:29:37 > 0:29:41'Laura and Stephen paid £194,000 for the house
0:29:41 > 0:29:45'and have spent £16,000 on the renovations so far,
0:29:45 > 0:29:48'totalling £210,000.
0:29:48 > 0:29:54'But this is not so much a financial investment as one in the happiness of their family.
0:29:59 > 0:30:04'We invited two local property experts to give us their opinions.'
0:30:05 > 0:30:08I think it's a really great property.
0:30:08 > 0:30:10I do like the location of where it is.
0:30:10 > 0:30:13I think what they've done to it, the decor, is very nice.
0:30:13 > 0:30:17The four double bedrooms are good, as well.
0:30:17 > 0:30:21The current owners have done a great job with the kitchen, fantastic.
0:30:21 > 0:30:23Bathroom, exactly what people are after.
0:30:23 > 0:30:28P-shaped shower-baths and big raindrop shower-heads.
0:30:28 > 0:30:33However, they've still got a considerable way to go to bring the whole house up to that standard.
0:30:33 > 0:30:36You've still got the old brick-built fireplace in the lounge,
0:30:36 > 0:30:39that will need to be stripped out.
0:30:39 > 0:30:42'Due to the proximity of the nearby air force base,
0:30:42 > 0:30:45'properties in this area always rent well.
0:30:45 > 0:30:50'The estate agents believe Laura and Stephen could achieve around £800 per calendar month.
0:30:50 > 0:30:54'The couple have no plans to rent out or sell their home,
0:30:54 > 0:30:58'but have their improvements added value here?'
0:30:58 > 0:31:00It's very hard to value a property like this,
0:31:00 > 0:31:05A, because of what it is, and B, because of where it is. There's not a lot that comes up here.
0:31:05 > 0:31:10But I think anything between £260,000 and £270,000 would be suitable for the property.
0:31:10 > 0:31:16Stamp duty threshold is £250,000 to go to the three percent amount
0:31:16 > 0:31:18and, having had a look at the property,
0:31:18 > 0:31:24even with all that work done, I still feel it would struggle to breach that £250,000 barrier.
0:31:27 > 0:31:31'Quite a difference. But that means the couple could turn a pre-tax profit
0:31:31 > 0:31:34'of between £40,000 and £60,000.
0:31:34 > 0:31:38'Could those figures tempt them to sell up and move on?'
0:31:38 > 0:31:44- No.- No, no, no.- No, we bought this as our long-term house, so we're staying put.
0:31:49 > 0:31:53'I'm in the Shropshire countryside, to the south of Telford.
0:31:53 > 0:31:55'The area has a strong industrial history,
0:31:55 > 0:31:58'but is now part of the Birmingham commuter belt.'
0:32:02 > 0:32:05The area is called Aqueduct, after a small example nearby.
0:32:05 > 0:32:09Let's hope the waters run smoothly on the property I'm here to see.
0:32:09 > 0:32:11From the outside, it doesn't disappoint.
0:32:11 > 0:32:14Two-bedroom cottage. And that is charming.
0:32:14 > 0:32:18Even better, it had a guide price of just £55,000.
0:32:23 > 0:32:27'This little row of cottages looks perfect in the sunshine.
0:32:27 > 0:32:30'The lot was guided at just £55,000
0:32:30 > 0:32:34'but I reckon it's priceless in terms of rural romance.
0:32:34 > 0:32:37'Let's hope it's the same inside.'
0:32:38 > 0:32:44Great sense of anticipation. Will the interior match the cutesy-wutesy exterior? Good start!
0:32:44 > 0:32:47Although, that's a bit strange. Why is there a window
0:32:47 > 0:32:51in between the living room and the dining room? A bit odd.
0:32:51 > 0:32:56But in there, lots of character. We've got the old beam there. I'd like to see a nicer fireplace.
0:32:56 > 0:32:59It's not a bad size space. There's central heating, which is good.
0:32:59 > 0:33:04Through to the dining room area. Straight away, I'm thinking get rid of this wall, open this all up.
0:33:04 > 0:33:09I don't know what that wall does. Nothing apart from maybe a bit of support.
0:33:09 > 0:33:11Stick an RSJ across the top there and open it out.
0:33:11 > 0:33:14But, all in all, it's looking good.
0:33:18 > 0:33:20'Although some work needs to be done,
0:33:20 > 0:33:26'the ground floor is pretty much a blank canvas and it's easy to visualise the possibilities here.
0:33:26 > 0:33:30'The kitchen is small and outdated so will need to be replaced.
0:33:30 > 0:33:36'And, unfortunately, you have to enter the bathroom through a door to the side of the kitchen entrance.
0:33:36 > 0:33:40'So let's keep an eye out for relocation options.'
0:33:43 > 0:33:47So, upstairs, two bedrooms, a smaller one at the back of the property,
0:33:47 > 0:33:50but lovely that it's got those stripped floorboards.
0:33:50 > 0:33:53And then through to a much bigger bedroom. And look at this.
0:33:53 > 0:33:56Great little original feature, this old gas lamp.
0:33:56 > 0:34:00Gives you an idea of some of the character features hidden in this property.
0:34:00 > 0:34:05In terms of this big bedroom, I would maybe reveal a fireplace over there
0:34:05 > 0:34:09and hopefully, underneath the carpet,
0:34:09 > 0:34:13there are, oh, joy of joys, even more of these original floorboards.
0:34:13 > 0:34:17Strip those back, absolutely beautiful.
0:34:17 > 0:34:24Spend a bit of effort on this place and you could just turn it into the most beautiful character cottage.
0:34:27 > 0:34:31'The only cause for concern are the damp patches around the ceiling.
0:34:31 > 0:34:33'Those do need to be investigated.
0:34:35 > 0:34:41'But all in all, I reckon this 19th century cottage is a real gem.
0:34:41 > 0:34:46'And there's more. An unexpected treat awaits me at the back.'
0:34:47 > 0:34:52If you can fight your way through the overgrowth to the rear of the property, it really is worth it,
0:34:52 > 0:34:54cos there's a real surprise in store.
0:34:54 > 0:35:00Not only have you got these outbuildings, but then this lovely bit of garden reveals itself.
0:35:00 > 0:35:06I mean, it's terribly overgrown, but a real fantastic find, especially in a house like this.
0:35:06 > 0:35:10Quite unusual for a terrace to have such a large garden. Lovely.
0:35:11 > 0:35:16'Lovely indeed. And there could be some possibilities for those outbuildings.
0:35:16 > 0:35:19'So, to recap, two reception rooms,
0:35:19 > 0:35:23'a bathroom downstairs, two bedrooms upstairs,
0:35:23 > 0:35:27'and a large garden with outbuildings to the rear.
0:35:27 > 0:35:30'Add to that real period charm and a beautiful setting,
0:35:30 > 0:35:33'and I'd say this is a fabulous little property
0:35:33 > 0:35:36'after a bit of renovation work.
0:35:37 > 0:35:40'Let's hear what a local estate agent thinks of it.'
0:35:41 > 0:35:45This row of houses in particular seems a very quaint row.
0:35:45 > 0:35:48They're all very pretty mid-terrace cottages
0:35:48 > 0:35:51and they are all very well-kept, as well.
0:35:51 > 0:35:55In my opinion, the property will require a new kitchen, new bathroom,
0:35:55 > 0:35:58cosmetic works, plastering works.
0:35:58 > 0:36:03The garden is very long. It is overgrown at the moment and does require landscaping.
0:36:03 > 0:36:08But once done, it will provide a very good size garden.
0:36:08 > 0:36:12'How much could this achieve on the rental market?'
0:36:12 > 0:36:15There is a rental market, a very high demand for rental property,
0:36:15 > 0:36:20and I feel, once the property has been modernised,
0:36:20 > 0:36:24then you could achieve around the £450 per calendar month mark.
0:36:24 > 0:36:27'And if sold on once renovated?'
0:36:27 > 0:36:30Once the property is fully modernised and the garden is done,
0:36:30 > 0:36:35I feel that the property would go onto the open market at around £120,000.
0:36:37 > 0:36:43Well, this house has what some terraces lack and that's real rural charm.
0:36:43 > 0:36:46I love it and I think, sympathetically restored,
0:36:46 > 0:36:49this would make a fantastic investment.
0:36:49 > 0:36:51Let's see who agreed at the auction.
0:36:55 > 0:36:59Two-bedroom mid-terrace cottage. What shall we say for lot 34
0:36:59 > 0:37:02in Telford, Shropshire? Can we start it at 50?
0:37:02 > 0:37:0550 I'm bid. Thank you. At £50,000.
0:37:05 > 0:37:0955. At £55,000.
0:37:09 > 0:37:1260 is it now? 60. At £60,000.
0:37:12 > 0:37:16New bidder. £61,000. 62?
0:37:16 > 0:37:1962. 63. 64.
0:37:19 > 0:37:2365. 66. 67.
0:37:24 > 0:37:28In the door, 68? Half, he's saying. 67 and a half.
0:37:28 > 0:37:3168? 68.
0:37:31 > 0:37:3368 and a half.
0:37:33 > 0:37:3669. And a half. 70.
0:37:36 > 0:37:3970 and a half. 71.
0:37:39 > 0:37:4172. 73?
0:37:41 > 0:37:4573. £74,000.
0:37:45 > 0:37:4875. 76,000. The bid's in the door.
0:37:48 > 0:37:5277 anywhere else? At 77. I'll go a half.
0:37:52 > 0:37:5676 and a half. 77 in the door?
0:37:56 > 0:38:0077. Sure? 77, the bid's in the door, then.
0:38:00 > 0:38:02£77,000.
0:38:02 > 0:38:05For the first time at £77,000.
0:38:05 > 0:38:08For the second time.
0:38:08 > 0:38:12Third and final time at £77,000.
0:38:14 > 0:38:18- In the door. Well done.- 'Hiding right at the back there was James.
0:38:21 > 0:38:26'He's a sales consultant and won the day with his bid of £77,000.
0:38:27 > 0:38:31'He bought this cottage with this brother, Richard, as a long-term investment.'
0:38:36 > 0:38:40- James, good to meet you. Congratulations.- Thanks very much.
0:38:40 > 0:38:43Tell me why you wanted to buy this little place.
0:38:43 > 0:38:47This one just took our eye looking through the brochures at the auctions.
0:38:47 > 0:38:50We've been to a few auctions, looked through catalogues.
0:38:50 > 0:38:55- I know the area a little bit, it's a great part of Telford, and it just took our eye.- Tell me about you.
0:38:55 > 0:38:58I'm fairly local, live in Bridgnorth, born and bred.
0:38:58 > 0:39:03I'm a sales consultant, self-employed.
0:39:03 > 0:39:06I've got two little girls. My wife's a teacher.
0:39:06 > 0:39:09Bought the property as an investment with my brother,
0:39:09 > 0:39:11so it's kind of a family thing.
0:39:11 > 0:39:15So what's the plan for it? What are you going to do to it?
0:39:15 > 0:39:19At this stage, it's only the second time we've been in the property, so not sure.
0:39:19 > 0:39:23Obviously want to modernise the kitchen and the bathroom.
0:39:23 > 0:39:28Not sure whether we'll try and move the bathroom upstairs or leave it where it is.
0:39:28 > 0:39:32Perhaps take out this wall that's behind us, open out downstairs
0:39:32 > 0:39:35and just make the place a nice little cottage.
0:39:35 > 0:39:40- Where would you put the bathroom upstairs?- Potentially on top of where it is now.
0:39:40 > 0:39:44- Just raise the ceiling a little bit. - OK.- If we can get planning permission.
0:39:44 > 0:39:47- So build an extension, basically. - Yeah.- OK.
0:39:47 > 0:39:52- And then that would give you a bit more space downstairs.- It would give a lot more space downstairs.
0:39:52 > 0:39:54It'd be a nice kitchen-diner at the back.
0:39:56 > 0:39:59'I think that's a great idea.
0:39:59 > 0:40:04'It will relocate the bathroom upstairs without sacrificing any bedroom space,
0:40:04 > 0:40:07'allowing a new open-plan living area downstairs.
0:40:07 > 0:40:09'But it won't be cheap.'
0:40:09 > 0:40:13- What about the back? You've got a lot of potential there.- Yes.
0:40:13 > 0:40:19Quite a bit garden out the back. There is a right of way immediately as you go out the back door,
0:40:19 > 0:40:24so a little bit restricted with that. We hope to try to make those outhouses a bit more accessible,
0:40:24 > 0:40:28so there's nice storage for garden furniture, bikes, et cetera.
0:40:28 > 0:40:31- And the garden? - And the garden, yeah.
0:40:31 > 0:40:35Not quite sure what we're going to do there. I guess clear it is the first objective
0:40:35 > 0:40:40and then find out exactly where our boundaries are and see what we can find there.
0:40:40 > 0:40:46OK. And then, at that point, will you assess what you're going to do, or will you definitely rent it out?
0:40:46 > 0:40:48I think we'll definitely rent it out, yeah.
0:40:48 > 0:40:51The long-term objective is to keep it as an investment for ourselves.
0:40:51 > 0:40:57- What are you going to do with the features?- There's a fireplace that's been covered up in the front room
0:40:57 > 0:41:01and you can see the beam on the ceiling, try and bring those things out
0:41:01 > 0:41:04- and really make that front room a nice little cottage room. - And the rest?
0:41:04 > 0:41:11We've got some nice pine doors, which we'll strip back, and try and expose all the floorboards upstairs.
0:41:11 > 0:41:17- What kind of budget have you got? - We've estimated a budget of about £12,000 to £15,000.
0:41:17 > 0:41:20That's without adding the extension on.
0:41:20 > 0:41:24If we add the extension on, then we'll have to revisit the costs.
0:41:24 > 0:41:30How is it going to work between you and your brother? How will you share the finances and the work?
0:41:30 > 0:41:33It's a 50/50 share of finances and investment.
0:41:33 > 0:41:36I'll project-manage the place
0:41:36 > 0:41:39and my brother, Richard, will be the silent partner.
0:41:39 > 0:41:44We work together on a few different things so, hopefully, it'll go all right.
0:41:44 > 0:41:46And timescale?
0:41:46 > 0:41:48Looking at three months.
0:41:48 > 0:41:53- Right. But getting people in... - Getting contractors in to do the main work.
0:41:53 > 0:41:57- Well, good luck with it all. We look forward to seeing how you get on. - Thanks.
0:41:57 > 0:42:01Well, James has certainly got himself a lovely little property here.
0:42:01 > 0:42:05Sort the damp out as a matter of urgency, for sure,
0:42:05 > 0:42:08and then he can turn this place into the most lovely little cottage.
0:42:08 > 0:42:13Will he do that and retain all its character? You can find out later in the show.
0:42:16 > 0:42:21Well, once you've bought your property, the hard work really starts
0:42:21 > 0:42:24and let's just hope there are no surprises in store.
0:42:24 > 0:42:26So, have our buyers uncovered hidden treasure
0:42:26 > 0:42:30or unearthed hidden pitfalls? Let's find out.
0:42:35 > 0:42:38'We're back in London in super-stylish Notting Hill,
0:42:38 > 0:42:42'where I saw a flat in this townhouse.
0:42:48 > 0:42:54'Simon and his wife, Joy, paid £362,00 for the one-bedroom top-floor flat.
0:42:56 > 0:42:58'The couple own and run a restaurant.
0:42:58 > 0:43:02'They plan to turn this place from down-at-heel to des-res
0:43:02 > 0:43:04'to appeal to the trend-setters and go-getters
0:43:04 > 0:43:07'in this highly-desirable and fashionable area.'
0:43:10 > 0:43:14I love this part of Notting Hill. I think you've got a great buy here.
0:43:14 > 0:43:18It's a lovely area and we were lucky enough to get it at a reasonable price.
0:43:18 > 0:43:23Because of the area and the value of the property, we're looking to do it to quite a high spec.
0:43:24 > 0:43:31'Just five weeks later, we've returned to find out if the couple have achieved their high-spec,
0:43:31 > 0:43:34'high-style finish to give them a high-value return.
0:43:41 > 0:43:47'Well, Simon and Joy have created a bright and welcoming open-plan living-kitchen area.
0:43:47 > 0:43:49'Originally, the kitchen was in the adjoining room,
0:43:49 > 0:43:54'but the couple have followed through their plan to make that a new second bedroom.
0:43:54 > 0:44:00'They decided against creating an open-plan living area to the front and kept the dividing wall.
0:44:00 > 0:44:03'That leaves the original master bedroom at the back of the flat.'
0:44:06 > 0:44:10We decided to make it a two-bed as opposed to a one-bed.
0:44:10 > 0:44:13We thought that would be the best course of action for us.
0:44:13 > 0:44:17So we moved the second bedroom into where the old kitchen was.
0:44:17 > 0:44:20We looked at this space and how we could best make it look bigger,
0:44:20 > 0:44:24so we knocked part of this wall down, not as much as we would've liked,
0:44:24 > 0:44:26but we think it really opened up the flat.
0:44:31 > 0:44:34'The kitchen is sleek and stylish and, despite being modern,
0:44:34 > 0:44:37'doesn't clash with this period property.
0:44:39 > 0:44:45'The room layout also ensured harmony between the kitchen and the living areas.
0:44:47 > 0:44:52'In the bathroom, the couple added a feature sink, along with some new flooring,
0:44:52 > 0:44:57'fixtures and fitting. I think it gives the rather plain room a real lift.
0:44:57 > 0:45:02'The master bedroom was bleak and bare but has now been decorated in warm, light colours
0:45:02 > 0:45:06'and dressed by Joy. They plan to sell the flat,
0:45:06 > 0:45:12'so dressing and furnishing it may help potential purchasers envisage the flat as a home.'
0:45:18 > 0:45:20People find it hard to imagine a space,
0:45:20 > 0:45:24so we dressed the bedrooms to show that they are good size double bedrooms
0:45:24 > 0:45:30and that people can imagine living in them. So we're really selling a lifestyle.
0:45:31 > 0:45:34'That messy communal space has been tidied
0:45:34 > 0:45:39'and the couple are in discussions with the freeholder about giving the area a makeover.
0:45:44 > 0:45:49'Simon and Joy completed the flat renovations within their four-week schedule.
0:45:50 > 0:45:54'They came in £1,000 under their 15-grand budget,
0:45:54 > 0:45:57'which bodes well for their future as property developers.
0:45:59 > 0:46:04'This is the couple's third investment property. What are their plans now?'
0:46:04 > 0:46:06Buy, buy, buy, hopefully.
0:46:06 > 0:46:12Keep buying, keep selling, build up a nice property portfolio in the next few years
0:46:12 > 0:46:15and just see where we go.
0:46:16 > 0:46:22Every now and again, you'll have a sleepless night, thinking, "How much money have I committed?"
0:46:22 > 0:46:25Especially when we've got a couple of properties up for sale.
0:46:25 > 0:46:31You suddenly start seeing the bank balance go down when you're still paying the mortgage payments on them.
0:46:31 > 0:46:34So, yeah, it gets a little bit hairy at those points,
0:46:34 > 0:46:38but I think the positives far outweigh the negatives, definitely.
0:46:40 > 0:46:45We're in this to make money, so if it's been a success or not will be whether we can sell it
0:46:45 > 0:46:49at the price we want. But on this one, I hope so.
0:46:49 > 0:46:51I'm quietly confident.
0:46:52 > 0:46:55'Let's see if Joy's right to be cheerful.
0:46:55 > 0:46:58'Two estate agents have come to share their opinions
0:46:58 > 0:47:03'of the couple's handiwork. Have Simon and Joy succeeded in creating a designer des-res
0:47:03 > 0:47:06'that will appeal to their affluent target market?'
0:47:09 > 0:47:11It's neatly finished.
0:47:11 > 0:47:14I think it's certainly an inoffensive finish.
0:47:14 > 0:47:16Might have pushed things a little bit further.
0:47:16 > 0:47:20This is a area that attracts high net-worth individuals.
0:47:20 > 0:47:26They're often looking for a little bit more than a builder's finish. But it's very neat and trim.
0:47:26 > 0:47:28Overall, I think they've done a good refurbishment.
0:47:28 > 0:47:32They've put in a lot of plus points. I like the way they've opened up
0:47:32 > 0:47:37the reception and the second bedroom, so you can see the two full-length sash windows as you come in.
0:47:37 > 0:47:41The finish is very modern and contemporary, which is what the area is looking for.
0:47:43 > 0:47:45'What do the estate agents think of the decision to have
0:47:45 > 0:47:49'a smaller open-plan living area and a second bedroom
0:47:49 > 0:47:53'rather than a larger reception room with just one bedroom?'
0:47:53 > 0:47:58It certainly gives you a wider appeal if you look towards the lettings market,
0:47:58 > 0:48:02because you could have two people sharing. It is slightly different,
0:48:02 > 0:48:07because you've compromised a little bit on the reception space, but you have gained a second double bedroom.
0:48:07 > 0:48:12Currently, there's probably a larger market for this amount of space
0:48:12 > 0:48:15configured as a one-bedroom apartment.
0:48:15 > 0:48:20Compromised two-bedroom apartments tend not to attract the same premium.
0:48:22 > 0:48:28'But the two-bedroom option will potentially get Simon and Joy a better return on the rental market.
0:48:28 > 0:48:34'The estate agents believe the property could achieve £1,950 per calendar month.
0:48:34 > 0:48:38'But the couple have always been hoping for a quick sale.
0:48:38 > 0:48:42'Let's find out what figure the agents believe this flat could achieve if sold.
0:48:42 > 0:48:48'Could Simon and Joy clean up? Or will their investment disappear down the plughole?'
0:48:50 > 0:48:56I suspect, in current market conditions, the apartment would realise around 425.
0:48:56 > 0:48:58I think it would be dangerous to ask more than 450.
0:48:58 > 0:49:02I'd suggest launching at £445,000.
0:49:02 > 0:49:06If I was to bring this property to the market today, I would expect it to achieve
0:49:06 > 0:49:08something in the region of £450,000.
0:49:11 > 0:49:18'Well, those figures could mean a pre-tax profit of between £49,000 and £74,000,
0:49:18 > 0:49:21'minus the usual selling expenses, of course.'
0:49:22 > 0:49:27- That's pretty much what we were hoping for, I think.- Yeah. We'd be pleased with that.- Very pleased.
0:49:27 > 0:49:31'The couple have put their flat on the market for £475,000,
0:49:31 > 0:49:33'hoping to achieve about £460,000.
0:49:33 > 0:49:37'Time to set a date for their next auction buy!'
0:49:42 > 0:49:46'We return now to the village of Aqueduct in Shropshire,
0:49:46 > 0:49:49'where I saw a charming two-bedroom terrace.'
0:49:49 > 0:49:53# The falling leaves
0:49:55 > 0:49:58# Drift by my window
0:50:00 > 0:50:06'But the quaint, rural attraction of this exterior was not matched inside.
0:50:06 > 0:50:11'The ramshackle interior concealed a rustic cottage-style property
0:50:11 > 0:50:14'just longing to be revealed.
0:50:14 > 0:50:17'But would it ever see the light of day?
0:50:17 > 0:50:20'It was James who took up the challenge.
0:50:20 > 0:50:24'He purchased this property as an investment for £77,000
0:50:24 > 0:50:27'along with his brother, who would be a silent partner.
0:50:27 > 0:50:33'James planned on renovating to reveal its rural beauty.'
0:50:33 > 0:50:38- What's the plan for it? - At this stage, it's only the second time we've been in the property,
0:50:38 > 0:50:44so a little bit not sure. Perhaps take out this wall that's behind us, open out downstairs
0:50:44 > 0:50:47and just make the place a nice little cottage.
0:50:48 > 0:50:52'We went back there nine months after I first viewed it.
0:50:55 > 0:50:58# The falling leaves
0:50:59 > 0:51:03# Drift by the window
0:51:04 > 0:51:07'The outside is as attractive as ever.
0:51:07 > 0:51:11'But let's take a look at the changes inside.
0:51:16 > 0:51:21'James has succeeded in creating a lovely country cottage.
0:51:21 > 0:51:28'The rustic oak beams on the ceiling and the lintel on the fireplace add some rural romance.'
0:51:28 > 0:51:34This room, we've opened up the fireplace and we've revealed the beams.
0:51:34 > 0:51:38And we made an opening in the centre, there, so it's large open-plan.
0:51:38 > 0:51:40I'm really pleased with the way this room worked out.
0:51:40 > 0:51:43We've restored the character back to the room.
0:51:44 > 0:51:47'By opening up the back wall of the living room,
0:51:47 > 0:51:53'natural light from the front windows now sheds light on the once dark and damp dining room.
0:51:57 > 0:52:01'By removing the ceiling and adding a skylight in the kitchen,
0:52:01 > 0:52:06'James has again enabled the sun to reach the dark nooks and crannies.'
0:52:12 > 0:52:17The kitchen has been transformed. Originally, there was a doorway here into the bathroom.
0:52:17 > 0:52:20And the kitchen sink and worktops were on this side.
0:52:20 > 0:52:24We've switched it over, creating a lot more space in the kitchen,
0:52:24 > 0:52:29and made a new entrance to the bathroom round the corner. I'm very pleased with the way this worked out.
0:52:31 > 0:52:35'The bathroom is now modern and cosy,
0:52:35 > 0:52:38'ideal for relaxing in a nice, hot bath.
0:52:39 > 0:52:42'Let's head up to the bedrooms.
0:52:46 > 0:52:50'Due to a damaged roof, all the walls needed to be treated and re-plastered.
0:52:50 > 0:52:56'But with nine months already gone and finishing work still to be done to the floors,
0:52:56 > 0:53:01'was James's original 12-week schedule a tad optimistic?'
0:53:01 > 0:53:04The project has taken longer than we anticipated.
0:53:04 > 0:53:07I think one of the problems that we've encountered
0:53:07 > 0:53:12is underestimating the extent of the work that was required to remedy some of the problems.
0:53:12 > 0:53:16The property had a lot of damp and we had to put a new damp course in,
0:53:16 > 0:53:20do some repairs to the roof and around the chimney, the flashing, et cetera.
0:53:20 > 0:53:25So little things like that all stacked up and gave delays that have got us to where we are today.
0:53:25 > 0:53:32'The renovation is a 50/50 financial split between James and his brother, Richard.
0:53:32 > 0:53:34'But James has been project manager.
0:53:34 > 0:53:40'So the schedule has trebled. What about their original £15,000 budget?'
0:53:40 > 0:53:45I estimate we've spent about £24,000 so far on the property,
0:53:45 > 0:53:47which is more than we anticipated.
0:53:48 > 0:53:51'What does Richard think about that?'
0:53:51 > 0:53:54Don't tell my brother.
0:53:54 > 0:53:58'Oops. I think the cat may be well and truly out of the bag now, James.
0:53:59 > 0:54:02'To the rear, the shabby lean-tos have been cleared away
0:54:02 > 0:54:05'and the overgrown garden cut back.
0:54:09 > 0:54:13'The interior renovation of this house is an undoubted success.
0:54:13 > 0:54:16'Is James happy with what he's achieved?'
0:54:17 > 0:54:20With regards to the house, we've done everything we wanted to.
0:54:20 > 0:54:24I'm pleased with the way the new kitchen and bathroom layout's worked out
0:54:24 > 0:54:29and also pleased with the character that we've restored to the cottage, the fireplace,
0:54:29 > 0:54:32restoring the beams to their original look, et cetera.
0:54:34 > 0:54:37'But will all the hard work equal hard cash?
0:54:39 > 0:54:41'Let's find out if James and his brother Richard
0:54:41 > 0:54:47'would be better to rent or sell up, as we get the lowdown from two local estate agents.'
0:54:47 > 0:54:50Internally, very, very impressed.
0:54:50 > 0:54:53He's done a nice job. There are one or two things he'll need to finish,
0:54:53 > 0:54:57things like carpeting up the stairs and the first floor.
0:54:57 > 0:55:02Externally, at the moment, a little bit disappointing. He may want to do something with the front door,
0:55:02 > 0:55:04just for the kerb appeal.
0:55:04 > 0:55:08I feel the changes have vastly improved the property.
0:55:08 > 0:55:12The vendor's put in new kitchen, new bathroom, he's done the electrics,
0:55:12 > 0:55:14he's put a damp-proof course in.
0:55:14 > 0:55:18All have added to the value of the property.
0:55:20 > 0:55:25'James and Richard paid £77,000 for the property
0:55:25 > 0:55:28'and have spent £24,000 on the renovation.
0:55:28 > 0:55:33'That totals £101,000 so far.
0:55:33 > 0:55:37'What do the experts believe it could achieve if they decided to rent it out?'
0:55:39 > 0:55:41This property would rent extremely easily.
0:55:41 > 0:55:43The rental market is very buoyant
0:55:43 > 0:55:48and I would estimate you'd get approximately £575 per calendar month.
0:55:48 > 0:55:50I feel the property would rent easily
0:55:50 > 0:55:54and he'd be looking around £525 per calendar month.
0:55:56 > 0:56:02'Those rental figures would give the brothers a yield of between six and seven percent.
0:56:02 > 0:56:06'That's better than banking your bread. What about the sell-on value?'
0:56:06 > 0:56:13I would expect it to achieve between £110,000 and £115,000 if this came on the open market today.
0:56:13 > 0:56:16If the vendor did opt to sell the property in the current climate,
0:56:16 > 0:56:18I feel he could achieve around £110,000.
0:56:20 > 0:56:26'Those estimates would give James and Richard a half share of between £9,000 and £14,000,
0:56:26 > 0:56:32'minus the cost of finishing touches, such as the flooring upstairs, and the selling fees.'
0:56:33 > 0:56:37In the short term, rental is probably going to be our preferred option.
0:56:37 > 0:56:43To see any return on your money these days is good, so I'm pleased. It's definitely been worthwhile.
0:56:49 > 0:56:52We hope you've enjoyed watching Homes Under The Hammer.
0:56:52 > 0:56:56Join us next time for more inspiring stories from the auction rooms.
0:56:56 > 0:56:58- See you then.- Goodbye.
0:56:59 > 0:57:03Subtitles by Red Bee Media Ltd
0:57:03 > 0:57:07E-mail subtitling@bbc.co.uk
0:57:07 > 0:57:07.