0:00:02 > 0:00:04We all know that the price of property
0:00:04 > 0:00:08- can go down as well as up. - It pays to buy at the right price.
0:00:08 > 0:00:12One way is to buy your home under the hammer.
0:00:37 > 0:00:41If you're thinking about buying at auction,
0:00:41 > 0:00:43now could be the time to start.
0:00:43 > 0:00:48The market's always changing, so judge when it's the time to buy.
0:00:48 > 0:00:53- Today's buyers put their money on the line.- Here's what they bought.
0:00:53 > 0:00:59'I'm digging up the truth about this site in Warminster.'
0:00:59 > 0:01:03Not a perfect site, but it's also not a nightmare.
0:01:03 > 0:01:08'I'm sold on this Victorian house in Selkirk.'
0:01:10 > 0:01:12I LOVE this place.
0:01:13 > 0:01:19'And this top floor flat in Faversham has a secret garden.'
0:01:19 > 0:01:23Kids would love it here. Grown-ups would, too.
0:01:25 > 0:01:28These properties have been sold at auction.
0:01:28 > 0:01:33We'll find out who bought them and what they paid when they went under the hammer.
0:01:36 > 0:01:39'I'm in the picturesque village of Mere in Wiltshire,
0:01:39 > 0:01:45'surrounded by designated areas of outstanding natural beauty
0:01:45 > 0:01:49'which are described as "jewels of the English landscape".'
0:01:49 > 0:01:55The lot I'm here to see is just south of the town centre.
0:01:55 > 0:01:59It's in a mainly residential area, but it's not a house.
0:01:59 > 0:02:03It's a plot with planning permission for a three-bedroom property.
0:02:03 > 0:02:06The guide price is £100,000.
0:02:06 > 0:02:10It's good to be well-dressed for these occasions.
0:02:10 > 0:02:14I've got me boots on ready to go. Let's have a look around.
0:02:14 > 0:02:17Oh, my goodness!
0:02:24 > 0:02:28My first consideration with a building site is access.
0:02:28 > 0:02:32It's a make-or-break factor with a potential development plot.
0:02:32 > 0:02:38This is off the road, which makes it easy for workmen and machinery.
0:02:38 > 0:02:43The site does look quite small for a three-bedroom detached house,
0:02:43 > 0:02:45but it's not unfeasible.
0:02:45 > 0:02:52There are no utilities, but they run nearby so it shouldn't be much of an issue.
0:02:52 > 0:02:55So it's a plot of two halves.
0:02:55 > 0:02:59Not a perfect site, but it's also not a nightmare.
0:03:01 > 0:03:03'The main selling point
0:03:03 > 0:03:07'is that planning permission has already been granted.
0:03:07 > 0:03:13'The plot was created from a neighbour's garden - a pot of gold for them.'
0:03:13 > 0:03:18# Somewhere over the rainbow
0:03:18 > 0:03:23# Skies are blue... #
0:03:25 > 0:03:28These are the plans that have been passed.
0:03:28 > 0:03:32The square footage is extremely generous.
0:03:32 > 0:03:381,500 feet. I know houses with five bedrooms with that square footage.
0:03:38 > 0:03:41You've got a kitchen diner.
0:03:41 > 0:03:45There's a nice living area, a utility space.
0:03:45 > 0:03:51All the bedrooms have got their own bathrooms, which is really nice.
0:03:51 > 0:03:55We are in an area of outstanding natural beauty.
0:03:55 > 0:04:01The planners rejected an application partly on the basis of materials.
0:04:01 > 0:04:06The stipulation is for natural stone on the elevation facing the road.
0:04:06 > 0:04:11The building will be attractive and practical. I'm quite impressed.
0:04:11 > 0:04:16'The house recently built next door had the same stipulations
0:04:16 > 0:04:18'about the use of stone.
0:04:18 > 0:04:22'Nearby is a small estate of new-builds,
0:04:22 > 0:04:26'also built to reflect the area they're in.'
0:04:31 > 0:04:38A rule of thumb for development sites is to spend a third of the overall end value on the land,
0:04:38 > 0:04:42a third on the build and the final third should be your profit.
0:04:42 > 0:04:46In this case, if you spend 100,000 on the land,
0:04:46 > 0:04:48100k on the build,
0:04:48 > 0:04:52then you should be bagging a very healthy £100,000 profit.
0:04:52 > 0:04:57Three-bedroom houses around here go for £300,000.
0:04:57 > 0:04:59With that theory, it could play out.
0:04:59 > 0:05:03However, we are in the throes of an economic crisis.
0:05:03 > 0:05:08Buyers are sitting on their hands and property prices are tumbling.
0:05:08 > 0:05:13I would recommend anybody who takes on a development now
0:05:13 > 0:05:17to be careful with their budget and be prepared to rent the house out,
0:05:17 > 0:05:21at least in the short term, while we ride out this storm.
0:05:23 > 0:05:29'The guide price for this plot of land was £100,000.
0:05:29 > 0:05:33'I asked a local estate agent for some local knowledge.'
0:05:36 > 0:05:40We've got a traditional town centre with stunning countryside around.
0:05:40 > 0:05:44Gillingham, about four miles away, has a mainline station
0:05:44 > 0:05:47giving access to London.
0:05:47 > 0:05:51In my opinion, this is a good plot on the edge of the village.
0:05:51 > 0:05:57The planning permission granted for this property is right for the plot.
0:05:57 > 0:06:00Any increase in bedrooms would be overdevelopment.
0:06:00 > 0:06:07'The current plan means there would be a garden that would be small in relation to the house.
0:06:07 > 0:06:13'What would the market value of the property be once completed?'
0:06:13 > 0:06:16I value the proposed dwelling at £295,000.
0:06:19 > 0:06:21'And the rental income?'
0:06:21 > 0:06:27If the property were to be rented out, I believe it would rent for £850 per calendar month.
0:06:31 > 0:06:34This development plot is in a great location.
0:06:34 > 0:06:39These plans really work for me and the figures appear to stack up,
0:06:39 > 0:06:41despite economic doom and gloom.
0:06:41 > 0:06:46Somebody has already done the hard work by getting these plans passed.
0:06:46 > 0:06:50Let's see who took this project on at the auction.
0:06:51 > 0:06:55Who'll put me straight in at 100,000 for this building plot?
0:06:55 > 0:07:01Lot 17 in Mere, ladies and gentlemen. 80,000. 80,000. 85.
0:07:01 > 0:07:0390.
0:07:03 > 0:07:0490,000. 92, is it?
0:07:04 > 0:07:0792. 94.
0:07:07 > 0:07:0996.
0:07:09 > 0:07:14All done, ladies and gentlemen? Lovely building plot at £96,000.
0:07:14 > 0:07:1798. 99.
0:07:17 > 0:07:2199? No? Please, don't fan yourselves.
0:07:21 > 0:07:25You nearly bought a building plot for 99,000. 98,000.
0:07:25 > 0:07:30Sorry to mess you about. All done, then, at £98,000...
0:07:30 > 0:07:34'The successful bidder was 25-year-old Daniel.
0:07:36 > 0:07:40'He paid £2,000 less than the £100,000 guide price.
0:07:40 > 0:07:46'Daniel works for his dad, Terry, in the family building firm.'
0:07:48 > 0:07:53Congratulations. There was a bit of confusion, Daniel, after your bid.
0:07:53 > 0:07:57I bid at 98. Somebody at the back waved their hand.
0:07:57 > 0:08:02They called it 99. They were fanning themselves with the programme.
0:08:02 > 0:08:06- So he came back to me at 98. - I bet that was a relief.
0:08:06 > 0:08:12- It was. I didn't want to go any higher.- How long have you guys been building for?
0:08:12 > 0:08:16I've been building over 35 years.
0:08:16 > 0:08:21- I've been working with you for...about five years?- Yeah.
0:08:21 > 0:08:25- Daniel, has your dad taught you everything you know?- A fair bit!
0:08:25 > 0:08:30He's learned most things himself on site, but he is site manager.
0:08:30 > 0:08:34I keep an eye on things. Daniel runs the day-to-day operation.
0:08:34 > 0:08:40He knows a lot about everything now. We do shops, offices, house builds.
0:08:40 > 0:08:46Have you done anything like this? It's a big project to actually build a house from scratch.
0:08:46 > 0:08:51Well, we do it all the time. We've built over a dozen.
0:08:51 > 0:08:58- It's all on his shoulders now. - So this is your project? It's solely your own project?- Yeah.
0:08:58 > 0:09:06- He's done one before. He bought an old bungalow, extended it, improved it and sold it.- Yeah.
0:09:06 > 0:09:11- Tell me about that.- It was another auction property. It was derelict.
0:09:11 > 0:09:16I put a back extension on it, a side extension, went upstairs.
0:09:16 > 0:09:22I turned it into a four-bed house with a garage. It was just a one-bed bungalow before.
0:09:22 > 0:09:26You turned it into a four-bed house. Sold it on?
0:09:26 > 0:09:29- Made a fortune? - Made a lot of money.- Did quite well.
0:09:29 > 0:09:33- Good.- Just before the market came down a bit.
0:09:33 > 0:09:37'Daniel intends to do the bulk of the building work himself,
0:09:37 > 0:09:40'while also working full time for his dad.'
0:09:44 > 0:09:46How are you going to find the time?
0:09:46 > 0:09:50- I'll be here weekends, evenings. - He's due some holiday.
0:09:50 > 0:09:54- That'd be nice.- Hasn't had a holiday for three years.
0:09:54 > 0:10:00- How hard on him are you? - Not too bad. He does a good job. He's his own boss, really.
0:10:00 > 0:10:05- Are you going to get involved?- I'll help where I can. I'm semi-retired.
0:10:05 > 0:10:09Daniel's the oldest of nine children.
0:10:09 > 0:10:13- NINE children?- Yes. - What's their age range?
0:10:13 > 0:10:20Daniel being the oldest at 25. The youngest is a little boy who's nearly four.
0:10:20 > 0:10:26We've got three girls and six boys. I haven't got time to go to work!
0:10:26 > 0:10:31- How does your mum cope with you lot with your muddy boots?- She shouts.
0:10:31 > 0:10:37- "Take 'em off!"- She's got us well trained. They're all taken off before they come in.
0:10:37 > 0:10:42- Any chance you might want to live in it?- It depends on the market.
0:10:42 > 0:10:46If it looks like I can sell it, then I probably would.
0:10:46 > 0:10:48If not, I'd move in.
0:10:48 > 0:10:55- Terry, how does it feel to see your son following in your footsteps? - I'm pleased. Building's very simple.
0:10:55 > 0:11:00It's not particularly complicated, but he does a good job.
0:11:00 > 0:11:05I'm more a do-er. He's very good on the accounts, on the record keeping.
0:11:05 > 0:11:09- Yeah, I do enjoy the building. - A builder with brains.
0:11:12 > 0:11:17'Daniel not only has the brawn but he has the brains to match.
0:11:17 > 0:11:20'He's viewed the new-build next door,
0:11:20 > 0:11:23'which has a fourth bedroom in the attic.
0:11:23 > 0:11:28'He will try to amend the plans for his site in the same way.
0:11:28 > 0:11:30'That will add value,
0:11:30 > 0:11:35'without detracting from the already small proposed garden.'
0:11:35 > 0:11:42It came with plans for a three-bed house. Have you thought about tweaking them? Are they perfect?
0:11:42 > 0:11:46It's quite tucked up in this far corner.
0:11:46 > 0:11:50I'd like to get more garden at the back so it's not all at the front.
0:11:50 > 0:11:53There's a bit of noise from the road.
0:11:53 > 0:11:59Maybe add a garage and go up into the roof, like next door, to add another room.
0:11:59 > 0:12:05How much do you think it's going to cost? Have you done any sums?
0:12:05 > 0:12:07I'm hoping less than 100.
0:12:07 > 0:12:12- But...- Yeah. I think so. - Obviously do a lot myself.
0:12:12 > 0:12:15How long will it take to build your house?
0:12:15 > 0:12:21Hopefully, finished in a year. It's not as quick as if you were doing it full time.
0:12:21 > 0:12:28Six months on a normal project but in his own time, nine months to a year.
0:12:28 > 0:12:33Good luck with this. I can't wait to see the finished product.
0:12:35 > 0:12:41Daniel and Terry are an experienced team. I'm sure they know what they're doing.
0:12:41 > 0:12:45I hope Daniel's prepared to move in while the market picks up.
0:12:45 > 0:12:47And I hope they don't over-spend.
0:12:47 > 0:12:51I think this is a great project in a lovely location.
0:12:51 > 0:12:54Find out how they get on later in the show.
0:12:58 > 0:13:03'I'm in the small town of Selkirk in the Scottish borders.
0:13:03 > 0:13:08'Residents are traditionally known as souters, meaning cobblers,
0:13:08 > 0:13:11'as, in the past, shoes were made here.
0:13:11 > 0:13:16'Let's hope we won't find the property down-at-heel.'
0:13:16 > 0:13:20Up for auction was a five-bedroom detached house
0:13:20 > 0:13:23with a guide price of 275,000 quid.
0:13:23 > 0:13:27From the catalogue, it sounds pretty grand.
0:13:27 > 0:13:31You know what? Oh, yes! It is absolutely beautiful!
0:13:31 > 0:13:36Look at the symmetry, the grey-black stone with sandstone inserts.
0:13:36 > 0:13:39It's glorious. That stone, as a matter of interest,
0:13:39 > 0:13:44is so hard and tough it was used as the core of Hadrian's Wall.
0:13:44 > 0:13:48Let's hope it's as grand and impressive inside.
0:13:48 > 0:13:50'This house is simply stunning
0:13:50 > 0:13:55'and has immediately made a strong impression on me.
0:13:55 > 0:14:00'Everything is big, bold and beautiful.
0:14:00 > 0:14:04'It's listed, meaning that any changes must be appropriate
0:14:04 > 0:14:07'and sympathetic to its character.'
0:14:09 > 0:14:14Look at this door! Huge! Really great start.
0:14:14 > 0:14:16What is that?
0:14:16 > 0:14:18Fan-tastic!
0:14:18 > 0:14:21Look at THAT for a front door key!
0:14:22 > 0:14:26You wouldn't want to lose that. Wonder if it works.
0:14:27 > 0:14:30Yeah! That's great.
0:14:30 > 0:14:32Through into your entrance.
0:14:32 > 0:14:35- SIGHS - High ceilings!
0:14:35 > 0:14:37You've got this cornicing.
0:14:37 > 0:14:40The detailing hasn't been lost
0:14:40 > 0:14:42through years of painting.
0:14:42 > 0:14:46You're faced by this staircase. It's elegant, it's gorgeous.
0:14:46 > 0:14:49You've got this mahogany banister.
0:14:49 > 0:14:53Instead of wooden railings, these are cast iron.
0:14:53 > 0:14:56- WISTFUL:- Oh, it's a great start.
0:14:56 > 0:14:58CHUCKLES
0:14:58 > 0:15:00'It gets better and better.
0:15:00 > 0:15:06'Three huge reception rooms complete with wonderful character features
0:15:06 > 0:15:09'waiting for original fireplaces to be installed.
0:15:09 > 0:15:12'Past the old bathroom
0:15:12 > 0:15:16'there's what's probably a dining room, again a grand size.
0:15:16 > 0:15:19'Then down to earth with a bump.
0:15:19 > 0:15:24'I'm falling hard for this house and I'm afraid the kitchen hurts.'
0:15:24 > 0:15:30The kitchen is a disappointment, certainly not befitting this house.
0:15:30 > 0:15:32You've got this other room here,
0:15:32 > 0:15:38which I think is the natural place for the kitchen, to create a heart to the house.
0:15:38 > 0:15:44But it's not quite big enough. You could to take out this wall.
0:15:44 > 0:15:48However, it's two feet thick so that's out the question.
0:15:48 > 0:15:53I reckon you should knock through this wall, maybe an archway or RSJ.
0:15:53 > 0:15:58That's through to a reception room. You've got enough reception rooms.
0:15:58 > 0:16:04You need this big family space so, kitchen here and living area there.
0:16:04 > 0:16:08That is what I would do to get that heart that you need.
0:16:08 > 0:16:12'As far as hearts go, mine is lost to this place.
0:16:12 > 0:16:16'I can't wait to venture up that beautiful staircase.
0:16:16 > 0:16:19'On the landing is the bathroom.
0:16:19 > 0:16:22'Its harsh black-and-white design feels at odds
0:16:22 > 0:16:26'with the soft curves of the rest of the house.
0:16:26 > 0:16:28'Let's explore the bedrooms.'
0:16:32 > 0:16:37You've got five bedrooms, four of them good sizes.
0:16:37 > 0:16:40You've got high ceilings.
0:16:40 > 0:16:44Absolutely glorious. It hasn't really been ruined, this house.
0:16:44 > 0:16:49You've got sash windows. They look like they need specialist care.
0:16:49 > 0:16:52But they are original.
0:16:52 > 0:16:56You can it's the original glass. There's defects in it.
0:16:56 > 0:16:58And surrounding the windows...
0:16:58 > 0:17:00Oh! Shutters!
0:17:00 > 0:17:04These have been painted so they don't open
0:17:04 > 0:17:06but have it dipped, stripped
0:17:06 > 0:17:11and you would have these beautiful pine shutters. I LOVE this place!
0:17:11 > 0:17:16'This is a time capsule, showing what it must have been like
0:17:16 > 0:17:18'100 years ago.
0:17:18 > 0:17:21'And this house still has more to offer.'
0:17:21 > 0:17:24I've seen five bedrooms
0:17:24 > 0:17:27and the auction catalogue says that's all there is.
0:17:27 > 0:17:32However, up here on the very top floor are two more rooms.
0:17:32 > 0:17:37These would make great kids' rooms. You've got a problem with height.
0:17:37 > 0:17:41Why not think about taking out that, going into the attic space?
0:17:41 > 0:17:45Maybe taking out this wall, possibly to create two kids' rooms
0:17:45 > 0:17:48or one huge great play area.
0:17:48 > 0:17:53Fantastic! I mean, the options for this house just go on and on.
0:17:53 > 0:17:57'And I could go on and on about the grandeur.
0:17:57 > 0:17:59'Then I step into the garden,
0:17:59 > 0:18:04'which not only has a beauty to match the house but also potential,
0:18:04 > 0:18:07'with outbuildings ripe for development.
0:18:07 > 0:18:13'With a guide price of 275,000, time to hear what a local property expert thinks
0:18:13 > 0:18:17'of this marvellous place. The fact that it's listed
0:18:17 > 0:18:23'will also affect how much has to be spent to bring it up to standard.'
0:18:23 > 0:18:29It's a very substantial property. The building's listed, Category C.
0:18:29 > 0:18:34The costs of repair and improvement is obviously going to be influenced
0:18:34 > 0:18:37by the level of finish,
0:18:37 > 0:18:42but I would think you're very quickly going to spend £50,000
0:18:42 > 0:18:46and that could rise quite easily to 70,000.
0:18:46 > 0:18:49Who knows? Maybe even a wee bit more.
0:18:49 > 0:18:54'This gracious house does deserve that loving touch.
0:18:54 > 0:18:57'After a renovation, what could it be worth?'
0:18:57 > 0:19:00I would have estimated its value
0:19:00 > 0:19:04will very quickly rise to around 350,000,
0:19:04 > 0:19:07could even be 370,000.
0:19:07 > 0:19:12This really is a rare opportunity to own a truly staggering home
0:19:12 > 0:19:17that basically just needs a bit of tender loving care.
0:19:17 > 0:19:23I don't think it'll be the size of someone's wallet that influences who buys it.
0:19:23 > 0:19:29Somebody is going to fall in love with it. Let's find out who that was when it went under the hammer.
0:19:32 > 0:19:36Lot 41. Somebody start me at 200,000?
0:19:36 > 0:19:40Just to get us started. 200,000 anywhere?
0:19:40 > 0:19:45200. Thank you, sir. Sitting down in the middle. 200.
0:19:45 > 0:19:48205 anywhere? Thank you, sir. 205.
0:19:48 > 0:19:50205. 210? 210.
0:19:50 > 0:19:52215? 215.
0:19:52 > 0:19:55220? 220. 225?
0:19:55 > 0:19:58225. 230?
0:19:58 > 0:20:00235? 235.
0:20:00 > 0:20:02240? 245?
0:20:04 > 0:20:06245. 250? 250.
0:20:06 > 0:20:08255? He's shaking his head.
0:20:08 > 0:20:11We're at £250,000.
0:20:11 > 0:20:13I'm looking for 255.
0:20:13 > 0:20:16Are you coming back in? 255. 255.
0:20:16 > 0:20:18260? 265?
0:20:18 > 0:20:22He's shaking his head. OK, we're at 260.
0:20:22 > 0:20:25That's £260,000. Are we all done?
0:20:25 > 0:20:29Going once, twice, third and final time.
0:20:29 > 0:20:34£260,000. Thank you very much, gentleman who got me started.
0:20:34 > 0:20:39'The successful bidder who got the house for 260,000
0:20:39 > 0:20:42'was Fergus, or Ferg, as he's known.
0:20:42 > 0:20:45'He was at the auction with his father-in-law.
0:20:45 > 0:20:50'Ferg's a part-time engineering consultant, part-time house husband,
0:20:50 > 0:20:54'and his wife Claire is a paediatric consultant in the local hospital.
0:20:54 > 0:21:02'They bought this house as a home for themselves and their children, Rory and Isla.'
0:21:02 > 0:21:08- Ferg, congratulations.- Thank you. - I can't believe it went what it went for.
0:21:08 > 0:21:13- I was very pleased at the price. - Why did you want to buy the house?
0:21:13 > 0:21:20It's quite a long story. We had to move to Selkirk for my wife's job in the local hospital.
0:21:20 > 0:21:26We couldn't sell our house in Glasgow so we rented a place here more than a year ago.
0:21:26 > 0:21:30One of the first houses we looked at was this one.
0:21:30 > 0:21:34At that point, we rejected it. It was too expensive.
0:21:34 > 0:21:38- Needed too much work and was too close to the road.- How much was it?
0:21:38 > 0:21:44- It was "offers over" 325,000, which means they wanted £400,000.- Right.
0:21:44 > 0:21:50After we'd moved to Selkirk, we're living three minutes walk from here.
0:21:50 > 0:21:56We're looking at it every day as we walk past thinking, "That's a very nice house."
0:21:56 > 0:22:02When we saw the auctioneer's sign outside, because it wasn't selling,
0:22:02 > 0:22:04we thought we'd better go for it.
0:22:04 > 0:22:09It just happened that our house in Glasgow sold at that point
0:22:09 > 0:22:13so we could buy a house and it all worked out well for us.
0:22:13 > 0:22:17- The timing is right. It was meant to be.- That's right.
0:22:17 > 0:22:20'So determined were the couple
0:22:20 > 0:22:24'that when the auction clashed with a holiday, Ferg flew back early
0:22:24 > 0:22:27'to buy their dream home.'
0:22:27 > 0:22:30Tell me what the plans for the house are.
0:22:30 > 0:22:36The dining room and the kitchen, we're going to knock them together.
0:22:36 > 0:22:42This is all going to be limited by what we're allowed to do because it's Grade C listed.
0:22:42 > 0:22:47The idea is to have a big open-plan dining kitchen with sofas at one end
0:22:47 > 0:22:50the kitchen at the other end and a table in the middle.
0:22:50 > 0:22:55We fancy putting some French windows in the kitchen and the sitting room.
0:22:55 > 0:23:00The top floor, at the moment, that's going to stay as box rooms.
0:23:00 > 0:23:03Then we've got the outhouse as well.
0:23:03 > 0:23:08My aspiration is that will be my study and workshop.
0:23:08 > 0:23:13Whether I can get budget approved from the family, I don't know.
0:23:13 > 0:23:16'That's a lot to do for starters.
0:23:16 > 0:23:19'Getting it for only 260,000 has freed up finances
0:23:19 > 0:23:23'so they've got a budget of £80,000.
0:23:23 > 0:23:29'As he's a dab-hand at DIY, Ferg plans to do a lot of renovation himself.
0:23:29 > 0:23:33'Fortunately, a survey taken before the auction showed that,
0:23:33 > 0:23:38'apart from minor damp problems, the house is structurally sound.
0:23:38 > 0:23:44'They're hoping that in six months' time they can be enjoying living there.
0:23:44 > 0:23:48'With 16-month-old Rory, who Ferg was showing around,
0:23:48 > 0:23:53'it looks like they can't wait to get started on the place.'
0:23:53 > 0:23:58- How do you feel about getting it? - Delighted. It's very exciting.
0:23:58 > 0:24:03It's great to think this is ours, this is where we're going to live.
0:24:03 > 0:24:10I can't wait to start ripping out these horrible carpets, taking down some of the wet plasterwork.
0:24:10 > 0:24:13I am truly delighted for you. Congratulations.
0:24:13 > 0:24:18- We look forward to seeing how you restore this beautiful house.- OK.
0:24:18 > 0:24:23What a great step on this house's journey back to its glory days!
0:24:23 > 0:24:29What a wonderful family home this will make for Ferg, his wife and their children.
0:24:29 > 0:24:35A few hoops to jump through getting planning permission. I can't wait to see how they get on.
0:24:35 > 0:24:38You can find out how it goes later in the show.
0:24:39 > 0:24:44'Coming up, I look on the bright side of this flat in Faversham.'
0:24:44 > 0:24:49Someone's made a good attempt at brightening this place up.
0:24:50 > 0:24:54'We return to see how Ferg got on with the beautiful Victorian house.'
0:24:54 > 0:25:00I'm really pleased with the way it's turned out. I'm looking forward to moving in.
0:25:00 > 0:25:03'First, it's back to Wiltshire,
0:25:03 > 0:25:06'to see if Daniel found time to build his house.'
0:25:06 > 0:25:11I've been working weekends and evenings, fitting it around my work.
0:25:14 > 0:25:18'Let's return now, to the village of Mere in Wiltshire...
0:25:23 > 0:25:26'..where I viewed this plot of land.
0:25:26 > 0:25:31'Planning permission had already been granted for a three-bed house.
0:25:31 > 0:25:35'It had to be built using natural stone on the front elevation,
0:25:35 > 0:25:39'similar to the new-build next door.
0:25:40 > 0:25:44'The land was bought for £98,000 by 25-year-old Daniel,
0:25:44 > 0:25:48'who works for his father Terry in the family building firm.
0:25:48 > 0:25:52'Daniel planned to do the majority of work
0:25:52 > 0:25:56'while also working full time for his dad.'
0:25:56 > 0:25:59How will you find the time to build this house?
0:25:59 > 0:26:04- I'll be here weekends, evenings... - He's due some holiday.
0:26:04 > 0:26:07Hasn't had a holiday for three years.
0:26:07 > 0:26:11'But Daniel would have to be content with a busman's holiday.
0:26:11 > 0:26:16'Now we're back to view the results of all his hard work.
0:26:22 > 0:26:27'It's been 20 months since our last visit.
0:26:31 > 0:26:35'And it would appear to be time well spent.
0:26:40 > 0:26:44'Daniel has made modifications to the original plans.
0:26:44 > 0:26:48'It's now a five-bed, rather than a three-bedroom house.
0:26:48 > 0:26:53'He's added a garage and a room above using natural stone
0:26:53 > 0:26:59'and I can see that a second floor's been added.
0:27:00 > 0:27:04'The quality of the workmanship's outstanding.
0:27:04 > 0:27:08'This has been a massive undertaking for Daniel.'
0:27:08 > 0:27:12Weekends and evenings, fitting it around my work.
0:27:12 > 0:27:17I've had a few trades in - plumbers, electricians, plasterers -
0:27:17 > 0:27:20but everything else I've done myself.
0:27:20 > 0:27:24'The property has a large living room.
0:27:24 > 0:27:28'French doors make it feel even more spacious.
0:27:29 > 0:27:34'No corners have been cut on the finish. The units are oak.
0:27:34 > 0:27:36'As are the doors and floors.
0:27:36 > 0:27:40'A utility room at the back leads to the garage,
0:27:40 > 0:27:44'a feature Daniel added before reapplying for planning permission.'
0:27:44 > 0:27:49I put in the new application for the planning, which I got.
0:27:49 > 0:27:56Permission to put two more rooms in the roof, a big room above the garage and a few changes inside.
0:27:56 > 0:28:01'The bedroom above the garage is one of three big bedrooms on this floor.
0:28:01 > 0:28:05'The master bedroom has an en suite shower room.
0:28:10 > 0:28:13'Let's head up to the second floor.'
0:28:15 > 0:28:19These are the two rooms that weren't on the original plans.
0:28:19 > 0:28:24I've got a bedroom in there with a small office area here.
0:28:24 > 0:28:28This bedroom's slightly bigger. I think they're worth doing.
0:28:34 > 0:28:36'Daniel used the floor space wisely.
0:28:36 > 0:28:41'These rooms would have been the attic so they don't use ground area.
0:28:41 > 0:28:46'That's important, as the size of the house in relation to the garden
0:28:46 > 0:28:48'has always been an issue.'
0:28:50 > 0:28:55The house originally was tucked into the far corner,
0:28:55 > 0:28:58with this end of the house
0:28:58 > 0:29:00being the boundary.
0:29:00 > 0:29:04I brought it this way so I could get the garage on,
0:29:04 > 0:29:06better access for the drive.
0:29:06 > 0:29:09I think the house sits here OK.
0:29:09 > 0:29:13Not a lot of garden left but it's a good amount of parking.
0:29:13 > 0:29:19'This is a family sized property without a family sized garden,
0:29:19 > 0:29:22'which could put off potential purchasers.
0:29:22 > 0:29:26'It's already been attracting interest,
0:29:26 > 0:29:30'even though it's not quite finished.'
0:29:30 > 0:29:34I hope the house will sell quickly. People come round and they like it.
0:29:34 > 0:29:39It's a big house so I'd hope for 320,000, 3250,000.
0:29:39 > 0:29:44'Let's see if two estate agents agree with Daniel's valuation.
0:29:44 > 0:29:48'His 12-month schedule has long since passed.
0:29:48 > 0:29:52'But even with a few finishing touches still to do,
0:29:52 > 0:29:55'he will hit his £100,000 budget.'
0:29:57 > 0:30:00I think the property is very nice indeed.
0:30:00 > 0:30:02It's finished to a high standard.
0:30:02 > 0:30:07There's solid oak units in the kitchen, oak floors, oak doors.
0:30:07 > 0:30:10I like that the property has five bedrooms
0:30:10 > 0:30:14over three floors - ground floor, first floor, second floor.
0:30:14 > 0:30:17Two good bedrooms in the top.
0:30:17 > 0:30:21The fact that it's a stone-built property with the brick,
0:30:21 > 0:30:23I think that's a nice touch.
0:30:23 > 0:30:28It blends in well with the area and fits very well.
0:30:28 > 0:30:33The only negative would be the size of the garden.
0:30:33 > 0:30:36That's not to say it won't appeal to somebody.
0:30:36 > 0:30:39Not everybody wants a large garden.
0:30:39 > 0:30:43He's developed the plot as much as he can.
0:30:43 > 0:30:46The question is, has it been overdeveloped,
0:30:46 > 0:30:50in so much the garden is too small for a five-bedroom house?
0:30:50 > 0:30:52Only time will tell.
0:30:55 > 0:31:02'Daniel spent £98,000 on the property but estimates he will keep to his £100,000 budget.
0:31:02 > 0:31:07'Which means his total outlay should be £198,000.
0:31:09 > 0:31:12'What could this place achieve, if sold?'
0:31:15 > 0:31:19I would market this property with a guide price of £330,000.
0:31:19 > 0:31:22I'd value this at £320,000.
0:31:24 > 0:31:31'Those figures would give Daniel a pre-tax profit of £122,000 to £132,000.
0:31:31 > 0:31:36'Will he carry on with his busman's holiday, building day and night?
0:31:36 > 0:31:38'Weekdays and weekends?'
0:31:38 > 0:31:41It's been a good experience.
0:31:41 > 0:31:44Hopefully, I can sell it and do something else.
0:31:44 > 0:31:48# Daniel, Daniel
0:31:48 > 0:31:51# Look what you've done Look what you've done... #
0:31:56 > 0:32:00Welcome to Faversham, the ancient capital of Kent.
0:32:00 > 0:32:04The town attracts thousands of visitors each year.
0:32:04 > 0:32:06Shakespeare even made a visit here.
0:32:06 > 0:32:10Will I be comparing the auction property to a summer's day?
0:32:10 > 0:32:14To be or not to be? That is the question.
0:32:14 > 0:32:19Friends, Romans, countrymen, lend me your ears as I go off in search of today's lot.
0:32:19 > 0:32:21That is enough!
0:32:21 > 0:32:27'Although this is one of the most charming market towns in Britain,
0:32:27 > 0:32:29'it's not cut off from modern life.
0:32:29 > 0:32:32'The M2 is half a mile away.
0:32:32 > 0:32:37'The M20 is a 20-minute drive, for easy access to London and the south.
0:32:37 > 0:32:42'The property I'm looking at is just down the road.'
0:32:42 > 0:32:47I'm here to see a three-bedroom flat on the first floor of this building.
0:32:47 > 0:32:51The guide price was set at £60,000 to £65,000.
0:32:51 > 0:32:54Let's take a look inside.
0:32:54 > 0:32:57'It's nice to see a splash of colour in a garden.
0:32:57 > 0:33:03'But the exterior of this '60s flat may not be to everybody's taste.
0:33:03 > 0:33:09'The stairwell isn't the most uplifting introduction, but things get brighter inside.'
0:33:09 > 0:33:13Zero out of ten for the communal entrance. Very drab.
0:33:13 > 0:33:17I'd like to throw some paint around, really brighten it up.
0:33:17 > 0:33:22Inside, somebody's made a good attempt at brightening it up!
0:33:22 > 0:33:25You've got loads of space in here.
0:33:25 > 0:33:29The kitchen is towards the front. A nice big sunny window.
0:33:29 > 0:33:33You'll have to get rid of these units and think about
0:33:33 > 0:33:35redesigning this kitchen.
0:33:35 > 0:33:38I can see a bit of extra space.
0:33:38 > 0:33:42I'm just wondering whether you took this wall out
0:33:42 > 0:33:45you could sneak a bit more space in the back.
0:33:45 > 0:33:49Yes! Now, once you get rid of that water tank,
0:33:49 > 0:33:54you've got all this room to play with. Fantastic!
0:33:54 > 0:33:57'Elsewhere, space is not lacking.
0:33:57 > 0:34:00'The three bedrooms are spacious and bright,
0:34:00 > 0:34:04'but it's the colour scheme that takes my breath away!'
0:34:04 > 0:34:08# Take my breath away... #
0:34:08 > 0:34:12'It looks like someone's had great fun decorating this flat.
0:34:12 > 0:34:15'Thankfully, the bathroom's a little more neutral.
0:34:15 > 0:34:19'That suite could be ripped out and a modern one put in.
0:34:19 > 0:34:23'Even though the colours aren't as bright something's equally shocking.
0:34:23 > 0:34:26'Damp.'
0:34:29 > 0:34:32A-ha! There is the culprit! Look!
0:34:32 > 0:34:35Rotten fascias and soffits.
0:34:35 > 0:34:38It surprises me how often I see this.
0:34:38 > 0:34:42The damp in this house could have been so easily avoided.
0:34:42 > 0:34:46Maintenance of fascias and soffits is all-important,
0:34:46 > 0:34:50and those need replacing as soon as possible.
0:34:50 > 0:34:54This is leasehold so I would contact the freeholder
0:34:54 > 0:34:58and ask them how they intend to rectify this situation.
0:34:58 > 0:35:03The cost may be passed on, so that needs to be factored into the budget.
0:35:03 > 0:35:09'It's definitely worth checking to see if you will incur extra costs.
0:35:09 > 0:35:13'Another detail worth checking out is around the back.'
0:35:13 > 0:35:18This is a three-bedroom flat, which is quite standard, but this isn't.
0:35:18 > 0:35:21It's a wonderful garden! It's huge!
0:35:21 > 0:35:25Full of beautiful flowers and secret hiding places.
0:35:25 > 0:35:30Kids would love it here. Grown-ups would, too.
0:35:30 > 0:35:32# Let the children play
0:35:33 > 0:35:35# Let the children play... #
0:35:36 > 0:35:41'It's unusual for a first-floor flat to have a lot of space.
0:35:41 > 0:35:46'It's got loads of room, which is an unexpected bonus.
0:35:46 > 0:35:51'But a less exciting aspect is the road at the front.'
0:35:51 > 0:35:56You may see this road as a bit uneven, there are lots of potholes.
0:35:56 > 0:35:58According to the Highways Authority,
0:35:58 > 0:36:01a road like this will not be maintained by the council.
0:36:01 > 0:36:06It's up to the owners of the properties here to look after this.
0:36:06 > 0:36:10The upkeep of an unadopted road doesn't stop at the surface.
0:36:10 > 0:36:16It includes drainage, lighting, potholes and general maintenance.
0:36:16 > 0:36:19And that lot doesn't come cheap.
0:36:20 > 0:36:23'So, there are pluses and minuses.
0:36:23 > 0:36:26'What does the local estate agent make of it?'
0:36:30 > 0:36:33This property is large.
0:36:33 > 0:36:37It needs a lot spent on it, but it's an interesting combination.
0:36:37 > 0:36:41And nice to have a flat with a garden.
0:36:41 > 0:36:45It is rare for a flat to have a garden and a parking space,
0:36:45 > 0:36:50and that will always help when it comes to letting it or selling it.
0:36:50 > 0:36:55'What could this three-bed flat rent for in the current market?'
0:36:55 > 0:37:01Renovated, it would probably let for £550 to £600 per calendar month.
0:37:01 > 0:37:05'Renting sounds like a really good option here.
0:37:05 > 0:37:08'What if it was done up and resold?'
0:37:10 > 0:37:17When renovated this property possibly has a value of £100,000 to £110,000.
0:37:18 > 0:37:22To sum up, great flat, WONDERFUL garden,
0:37:22 > 0:37:28but I hope the person who buys this knows about that unadopted road before the auction.
0:37:28 > 0:37:31Otherwise, it could come as a shock.
0:37:31 > 0:37:35Let's find out who adopted this flat, as we go to auction.
0:37:35 > 0:37:37Then we go to lot 68.
0:37:37 > 0:37:41A first-floor flat. Start me where you will on that one.
0:37:41 > 0:37:45A guide of 60 to 65. Anyone going to pop in at £60,000? 60.
0:37:45 > 0:37:49And two now, do I see?
0:37:49 > 0:37:5362, I'm bid. 65? It's against you. 65. 67, may I say?
0:37:53 > 0:37:5767, may I say? £65,000 I have.
0:37:57 > 0:38:0067. And 68.
0:38:00 > 0:38:04And 70. And 72, and four, and six.
0:38:04 > 0:38:0676. And eight.
0:38:06 > 0:38:09And 80? At 80.
0:38:09 > 0:38:11At 78 on the righthand aisle.
0:38:11 > 0:38:1480, the original bidder. And two. And four?
0:38:14 > 0:38:1984, may I say? 84. And six?
0:38:19 > 0:38:23And eight sitting down. 88 in the original bidder?
0:38:23 > 0:38:2688 do I see? No, at 88, sitting down?
0:38:26 > 0:38:30I've got it on the righthand side at £86,000 against you two.
0:38:30 > 0:38:34Do I see 88 from either of you? If not, at £86,000.
0:38:34 > 0:38:40On the end of the aisle. I will sell for the first time unless I get 88.
0:38:40 > 0:38:43£86,000 bid for the second time.
0:38:43 > 0:38:46Is everyone out of it?
0:38:46 > 0:38:48At £86,000 I'm sel...
0:38:48 > 0:38:5388,000 I've got. Fill it up to 90. And two. 92, may I say?
0:38:53 > 0:38:56It can't be your only bid.
0:38:56 > 0:38:58It could be. 92, can I say?
0:38:58 > 0:39:02£90,000 for the first time.
0:39:02 > 0:39:04£90,000 for the second time.
0:39:04 > 0:39:09All done at £90,000? Sure you're all done, sitting down?
0:39:09 > 0:39:12BANGS GAVEL Yours at £90,000, sir.
0:39:12 > 0:39:15And the number, please, is 132.
0:39:15 > 0:39:19'That winning bid of 90,000 came from Richard.
0:39:19 > 0:39:22'He's a local full-time property developer
0:39:22 > 0:39:28'and has run his own company for eight years, amassing 25 buy-to-let properties.'
0:39:38 > 0:39:42Richard, great to meet you. Thank you so much for coming.
0:39:42 > 0:39:44Why did you want to buy this property?
0:39:44 > 0:39:49I'd identified it because Faversham looked very good.
0:39:49 > 0:39:53It's got good transport links - roads, rail.
0:39:53 > 0:39:56I looked at the house from the outside.
0:39:56 > 0:39:59The garden looked very nice.
0:39:59 > 0:40:02Unfortunately, I didn't get to see inside.
0:40:02 > 0:40:06Why did you not arrange it so you could have a viewing?
0:40:06 > 0:40:09I didn't have time. I was too busy.
0:40:09 > 0:40:13Having said that, I'm happy with the price I paid.
0:40:13 > 0:40:18- As a developer, yield is crucial for any purchase.- Absolutely.
0:40:18 > 0:40:24It's very, very important and, although it's good to buy at a good price,
0:40:24 > 0:40:28the key, if you're in it for the long-term, is yield.
0:40:28 > 0:40:34At the very minimum, my recommendation, it should be 8% at the very least.
0:40:34 > 0:40:38What did you think when you came inside for the first time?
0:40:38 > 0:40:43Initially, I was disappointed with the condition.
0:40:43 > 0:40:48There was some damp in the corners of two or three rooms.
0:40:48 > 0:40:53I normally do a complete refurb. It's a rip-out, to be honest.
0:40:53 > 0:40:58We need to renew the central heating system. The wiring's not too bad.
0:40:58 > 0:41:04Everything else. We'll remove the doors. New bathroom, new kitchen.
0:41:04 > 0:41:09We've given ourselves three weeks to do it and move on.
0:41:09 > 0:41:13'Three weeks sounds quick for all this work.
0:41:13 > 0:41:16'But remember, Richard's been doing this for years.
0:41:16 > 0:41:22'He'll subcontract the work while he's keeping an eye on his tight budget of 15,000.
0:41:24 > 0:41:27'He was a support engineer for 25 years.
0:41:27 > 0:41:32'Why did he switch to property development?'
0:41:32 > 0:41:36You can get up and make your mind up how you plan your day.
0:41:36 > 0:41:38You're your own guv'nor.
0:41:38 > 0:41:41To me, that means an awful lot.
0:41:41 > 0:41:43When you get to my age,
0:41:43 > 0:41:48and I'll be 60 in a few weeks, then that, to me, is very important.
0:41:48 > 0:41:52I'm not the retiring type. I need something to do.
0:41:52 > 0:41:55'With a complete refurbishment,
0:41:55 > 0:41:58'his plans here will keep him busy.
0:41:58 > 0:42:02'What about that damp and the leaky roof?
0:42:02 > 0:42:04'Will that cause him floods of problems?'
0:42:04 > 0:42:09The roof is sound. Not a problem. Went up into the loft. That's sound.
0:42:09 > 0:42:14The gutterings are blocked. Water is getting in behind the fascia.
0:42:14 > 0:42:22That's not helping, so we'll remove all of that, renew the lot. Then we can look at the damaged plaster.
0:42:22 > 0:42:29Improve the ventilation because we've got condensation problems. Then I'm sure it'll be fine.
0:42:29 > 0:42:33Now, you've got an unadopted road as you enter the property.
0:42:33 > 0:42:38- What can you tell me about that? - It's clearly a private unmade road.
0:42:38 > 0:42:44I guess we'll have responsibility in some way for the upkeep of that.
0:42:44 > 0:42:48I've had a word with the neighbours who've lived here for several years.
0:42:48 > 0:42:54- It doesn't appear to be a problem. - Richard, good luck.- Thank you.
0:42:54 > 0:42:59Savvy Richard will not buy anything that doesn't give him 8% yield.
0:42:59 > 0:43:04I'm a little worried, by the time he's spent his £15,000 budget,
0:43:04 > 0:43:08he won't achieve that comfortable yield he is so used to.
0:43:08 > 0:43:11Find out what happens later in the programme.
0:43:14 > 0:43:20Time is a great healer, but it can be your worst enemy when you're against a deadline.
0:43:20 > 0:43:24- What has happened to those properties?- Let's find out.
0:43:26 > 0:43:29'Earlier, we were in the Scottish borders
0:43:29 > 0:43:36'where this wonderful Victorian house in Selkirk sold for 260,000.
0:43:36 > 0:43:41'It was bought by part-time engineer and house husband Ferg
0:43:41 > 0:43:45'for his family to live in for years to come.
0:43:45 > 0:43:50'First, some very tender loving care was required.'
0:43:50 > 0:43:55It's great to think this is our home, where we're going to live.
0:43:55 > 0:43:58I can't wait to rip out these horrible carpets.
0:44:01 > 0:44:05'The house was going to have some loving owners - just as well,
0:44:05 > 0:44:09'seeing as the property is listed.
0:44:09 > 0:44:11'But that was 13 months ago.
0:44:11 > 0:44:16'From the outside, it seemed like there's still work going on.
0:44:16 > 0:44:18'But inside...
0:44:23 > 0:44:26'Well, it may be work in progress,
0:44:26 > 0:44:28'but boy, what progress!
0:44:28 > 0:44:33'The original front room, dining room and kitchen have been combined
0:44:33 > 0:44:38'to create a fantastic open-plan kitchen living area.'
0:44:38 > 0:44:43There used to be a hideous 1960s gas fire here.
0:44:43 > 0:44:47We've taken that out so we can see the nice stonework behind.
0:44:47 > 0:44:50We're going to put a stove in here.
0:44:50 > 0:44:54There was a wall here dividing these two rooms.
0:44:54 > 0:44:58I wanted a big family room so we've taken that wall out.
0:44:58 > 0:45:00The nice old original features,
0:45:00 > 0:45:06the maid call and the pulley, we've kept them partly for practicality,
0:45:06 > 0:45:09partly just because we like them.
0:45:09 > 0:45:13We've taken the old flagstones that were in the kitchen,
0:45:13 > 0:45:15laid them on a new kitchen floor.
0:45:15 > 0:45:18We put in a whole new kitchen.
0:45:18 > 0:45:24I'm particularly fond of my kitchen clock on the cooker hood.
0:45:24 > 0:45:28Two new skylights makes this a nice light airy room.
0:45:28 > 0:45:33Particularly about 5 o'clock in the evening, when the sun streams in.
0:45:33 > 0:45:37'With more light through those new French windows,
0:45:37 > 0:45:42'it's easy to imagine this room being the heart of the house.
0:45:42 > 0:45:45'The old scullery is still the back entrance,
0:45:45 > 0:45:48'but with a new shower room added.
0:45:48 > 0:45:51'The ground floor bathroom
0:45:51 > 0:45:56'has been turned into a practical utility area.
0:45:56 > 0:46:00'The changes aren't limited to the ground floor.'
0:46:00 > 0:46:03This used to be the smallest bedroom,
0:46:03 > 0:46:06but we wanted the bathroom here.
0:46:06 > 0:46:13All I did was partition off part of it to make the airing cupboard for the hot water cylinder.
0:46:13 > 0:46:17I've taken the sink and the toilet out of the old bathroom
0:46:17 > 0:46:20and fitted a new bath and shower.
0:46:20 > 0:46:24'So, the mid-landing bathroom has now gone,
0:46:24 > 0:46:28'hopefully to be replaced one day with an office.
0:46:28 > 0:46:33'One of the large front bedrooms has been given an en suite shower.
0:46:35 > 0:46:40'The remaining bedrooms have been redecorated and the floors stripped.
0:46:40 > 0:46:45'Everything looks ready for the family of four to move in. Four?!'
0:46:45 > 0:46:49Last time, we had two children, Isla and Rory.
0:46:49 > 0:46:52They've got a baby brother, Ewen, who's five weeks old.
0:46:52 > 0:46:56'It's just as well they've got two bedrooms upstairs
0:46:56 > 0:46:59'still waiting to be overhauled.
0:46:59 > 0:47:04'There's work to be done but getting this far has taken 13 months.'
0:47:04 > 0:47:07It took six months to get planning permission.
0:47:07 > 0:47:12It was another couple of months until the building consent arrived.
0:47:12 > 0:47:16So we couldn't start the major parts until we got all that in place.
0:47:16 > 0:47:21It's been fast and furious, working for the last four months
0:47:21 > 0:47:25every day, non-stop, to try and get this finished.
0:47:25 > 0:47:28'And the work continues, especially outside.
0:47:28 > 0:47:31'French windows to finish, a patio to create,
0:47:31 > 0:47:36'and a ditch to be dug around the outside to solve a drainage problem.
0:47:36 > 0:47:39'Four months of hard work seem to be paying off.
0:47:39 > 0:47:41'Ferg can take a lot of the credit.'
0:47:41 > 0:47:44Everything that's not major structural work.
0:47:44 > 0:47:48Knocking down the walls, I had builders in do to that.
0:47:48 > 0:47:53Everything else - fitting the bathrooms, kitchen, the plumbing,
0:47:53 > 0:47:59the wiring, most of the joinery - I've done that all myself.
0:48:01 > 0:48:07'It's an impressive piece of DIY but there were some low points.'
0:48:07 > 0:48:13I've been doing this project throughout the coldest winter in recorded history.
0:48:13 > 0:48:17I've been working with no central heating.
0:48:17 > 0:48:23Some days, it's been minus ten and I've had three fleeces, a coat, two pairs of gloves
0:48:23 > 0:48:25and still freezing.
0:48:26 > 0:48:29# Cold hands, warm heart... #
0:48:29 > 0:48:33'Ferg and family are certainly eco-friendly.
0:48:33 > 0:48:38'The unusual bathroom splashback is made of recycled plastic
0:48:38 > 0:48:40'and was sourced online.
0:48:42 > 0:48:48'The original budget was £80,000 but, with a few jobs to be done,
0:48:48 > 0:48:53'Ferg reckons the final bill will stretch to £130,000.
0:48:53 > 0:49:00'As the house cost £260,000, that would make the total £390,000.'
0:49:00 > 0:49:04I'm really pleased with the way it's turned out.
0:49:04 > 0:49:09I'm very happy with the shapes and sizes of the rooms.
0:49:09 > 0:49:13I'm really looking forward to being able to live here.
0:49:14 > 0:49:19'Ferg and his family will, hopefully, be in in a few weeks.
0:49:19 > 0:49:23'For now, it's time to find out what two local estate agents think
0:49:23 > 0:49:26'of their £390,000 dream home.'
0:49:26 > 0:49:32Fantastic period property. Very spacious. Ideal for a family.
0:49:32 > 0:49:38A first-class restoration job. He's trying to retain the character,
0:49:38 > 0:49:43with the sash windows, the stone floors he's retained
0:49:43 > 0:49:47and he's made a feature of the timber floors.
0:49:47 > 0:49:49'Ferg's done an amazing job,
0:49:49 > 0:49:54'but is that total outlay of 390,000 a good investment?
0:49:54 > 0:49:58'What could the house achieve if resold?'
0:49:58 > 0:50:01I would market this property at £400,000.
0:50:01 > 0:50:08I would anticipate that the property would be marketed at a figure of £400,000.
0:50:08 > 0:50:15It's not relevant to us because we don't expect to sell it, but very happy with that.
0:50:15 > 0:50:17'Rory looks like he's settling in,
0:50:17 > 0:50:22'which reminds us that this was never about making money,
0:50:22 > 0:50:25'but building a home for the family.
0:50:25 > 0:50:31'Ferg has achieved a great transformation. Will he be tempted to try this again?'
0:50:31 > 0:50:35If we needed to move and the right house was there,
0:50:35 > 0:50:38then yes, we would buy a house at auction again.
0:50:38 > 0:50:41'And if this house is anything to go by,
0:50:41 > 0:50:47'for Ferg, it will be as easy as riding a bicycle.'
0:50:50 > 0:50:54'We're back in Faversham, Kent, where this three-bedroom flat
0:50:54 > 0:50:59'sold for £30,000 over its 60-grand guide price.
0:50:59 > 0:51:03'It may have a great size garden, but the dated kitchen and bathroom,
0:51:03 > 0:51:06'outrageous colour scheme and damp problem
0:51:06 > 0:51:10'were not what new owner Richard was hoping for.'
0:51:10 > 0:51:14What did you think when you walked in through the door?
0:51:14 > 0:51:20Initially, I was disappointed with the condition.
0:51:20 > 0:51:23'But being a full-time property developer,
0:51:23 > 0:51:28'he wasn't going to let a little renovation work bother him.
0:51:28 > 0:51:31'Even that leaky roof didn't worry him.
0:51:31 > 0:51:33'Has that cool temperament paid off?
0:51:33 > 0:51:37'We caught up with him to find out how he got on.'
0:51:40 > 0:51:42# I'm on my way
0:51:42 > 0:51:44# And listen here, mama
0:51:44 > 0:51:48# Play it cool, play it cool
0:51:48 > 0:51:50# Cool. #
0:51:50 > 0:51:54Since you were last here, what we've done is rip everything out.
0:51:54 > 0:51:57We, more or less, reduced it to a shell.
0:51:57 > 0:52:02We've replastered all the ceilings, new coving.
0:52:02 > 0:52:04We've repaired the damp.
0:52:04 > 0:52:07Taken off the guttering, the fascia, the soffits.
0:52:07 > 0:52:10Very pleased with what we've done.
0:52:10 > 0:52:15'So he should be. What a difference he's made to the flat!
0:52:15 > 0:52:18'Those calm neutral colours are a great relief
0:52:18 > 0:52:21'from that rather vivid palette.
0:52:21 > 0:52:26'He's not just been busy in the bedrooms. Remember that kitchen?
0:52:26 > 0:52:29'You won't - once you've seen this new one!'
0:52:29 > 0:52:31This wall came down completely.
0:52:31 > 0:52:38It's increased the room and makes a lot better use of the space.
0:52:38 > 0:52:41There was a cupboard in that corner.
0:52:41 > 0:52:46The wall there was taken away and a new kitchen fitted.
0:52:48 > 0:52:53Over here, you'll see that we've got a replacement combi boiler
0:52:53 > 0:52:56located within this cupboard.
0:52:56 > 0:52:59I think it works very well.
0:52:59 > 0:53:04'It seems like Richard's cool and calm approach has paid off.
0:53:04 > 0:53:08'The bathroom doesn't look like it caused too many worries, either.
0:53:08 > 0:53:12'Even with that damp issue.'
0:53:12 > 0:53:17# No problems, no problems Only solutions... #
0:53:17 > 0:53:21We had a condensation problem in the walls.
0:53:21 > 0:53:23We believe we've overcome that
0:53:23 > 0:53:27with the ventilation, the heating system
0:53:27 > 0:53:30and replacing the fascias.
0:53:30 > 0:53:32I think it looks very good.
0:53:32 > 0:53:40# No problems, no problems Only solutions... #
0:53:40 > 0:53:44'Even the roof repairs didn't give him a trickle of trouble.'
0:53:44 > 0:53:49That's a cost that will be shared between myself and the freeholder
0:53:49 > 0:53:52who lives in the ground floor flat.
0:53:52 > 0:53:55That's not a problem. That cost will be shared 50/50.
0:53:55 > 0:53:59'Richard makes property developing look easy.
0:53:59 > 0:54:03'On top of all that, he's come in under budget.'
0:54:07 > 0:54:11I originally hoped to keep the budget within £15,000.
0:54:11 > 0:54:16What we've done, I'm hoping that the overall cost of the work
0:54:16 > 0:54:18will be just over £14,000.
0:54:18 > 0:54:25When you add on the legals and the auction costs, it comes to just over £15,000. I'm very pleased with that.
0:54:25 > 0:54:31'The only thing left to have gone wrong is that tight three-week deadline.
0:54:31 > 0:54:33'How did that go?'
0:54:33 > 0:54:35In terms of timescale,
0:54:35 > 0:54:38we took just over two weeks.
0:54:38 > 0:54:43It took a lot of project management, but I had a very good team.
0:54:43 > 0:54:47At one stage, we had eight or nine people here working in parallel.
0:54:47 > 0:54:52They did very well to get it done in those timescales. I'm very pleased.
0:54:52 > 0:54:58'But what do two local estate agents make of Richard's renovation?'
0:55:03 > 0:55:08Good quality fixtures and fittings in the kitchen and the bathroom.
0:55:08 > 0:55:13There's not really anything I would have changed with this property.
0:55:13 > 0:55:16The property is on an unadopted road
0:55:16 > 0:55:18which may put some buyers off.
0:55:18 > 0:55:23The finish quality and the size of the rooms would outweigh this.
0:55:23 > 0:55:27'Richard's already found some tenants
0:55:27 > 0:55:30'and is charging £700 per calendar month.
0:55:30 > 0:55:33'What do the experts think it's worth?'
0:55:33 > 0:55:41I would expect this property to achieve a rent in the region of £625 to £650 per calendar month.
0:55:41 > 0:55:45This property per calendar month would rent for £700.
0:55:45 > 0:55:49With the rental that I will be getting at 700,
0:55:49 > 0:55:53that's a sound investment and I'm happy with that.
0:55:53 > 0:55:58'Crucially for Richard, that rent will give him a yield of 8%,
0:55:58 > 0:56:01'exactly what he was hoping for.
0:56:01 > 0:56:05'He spent £90,000 on the property and another £15,000 on work.
0:56:05 > 0:56:09'So his total outlay here is 105,000.
0:56:09 > 0:56:14'If he decides to sell, what do the experts think he could make?'
0:56:14 > 0:56:21In the current market, this property would achieve a price of between £110,000 and £115,000.
0:56:21 > 0:56:25This property, in the current market, I would resale at £125,000.
0:56:25 > 0:56:28I can't be disappointed in that.
0:56:28 > 0:56:31'Richard makes this look simple - a great yield,
0:56:31 > 0:56:35'a healthy profit and a hassle-free renovation.
0:56:35 > 0:56:41'Not all developments are stress-free, but something tells me he wouldn't let it bother him.'
0:56:41 > 0:56:46I will keep my eyes open, keep moving and while I can do this,
0:56:46 > 0:56:48then I will do.
0:56:48 > 0:56:52It's my living now and I need to do something. That's what I'll do.
0:56:55 > 0:56:58We'll be back with more action from the auction rooms.
0:56:58 > 0:57:03- So join us then on Homes Under The Hammer. Goodbye.- Goodbye.
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd
0:57:23 > 0:57:26E-mail subtitling@bbc.co.uk