0:00:02 > 0:00:04Whether you're looking for a "do-er upper" or a plot of land...
0:00:04 > 0:00:07An investment property or a place to live...
0:00:07 > 0:00:10..you can find them all at the auction on Homes Under the Hammer.
0:00:36 > 0:00:39There are several key things to remember when buying at auction.
0:00:39 > 0:00:43Do your research and sort your finances out in plenty of time.
0:00:43 > 0:00:46So did today's buyers do their homework?
0:00:47 > 0:00:54This Victorian villa in Derby is enchanting, but the period features seem to have vanished.
0:00:54 > 0:00:56Just bring back the magic of this property.
0:00:56 > 0:01:03In South West London, I discover a flat that's just perfect for trainspotters.
0:01:03 > 0:01:05The flat...
0:01:05 > 0:01:07the railway line.
0:01:07 > 0:01:10And this two-bedroomed apartment in Sunderland has all mod cons
0:01:10 > 0:01:14and running water... But not where you'd want it.
0:01:14 > 0:01:17I mean, look at that. That's not good.
0:01:19 > 0:01:21All these properties have been sold at auction.
0:01:21 > 0:01:27- And we'll find out who bought them and what they paid for them when they went under the hammer.- Sold!
0:01:33 > 0:01:35I'm in Derby in the East Midlands.
0:01:35 > 0:01:40It's the heart of England, which means it has excellent transport links to the rest of the UK,
0:01:40 > 0:01:44and East Midlands Airport is only about 15 miles away.
0:01:47 > 0:01:52Derby's real boom time was during the Industrial Revolution in the Victorian era, so it's
0:01:52 > 0:01:56not surprising there are a lot of Victorian two-up, two-down terraces.
0:01:56 > 0:01:59But there are also grander properties such as
0:01:59 > 0:02:04in Belper Road here, where up for auction was a Victorian villa.
0:02:04 > 0:02:09Six bedrooms, had a guide price of £155,000.
0:02:12 > 0:02:18It looks pretty grand from the outside, and it seems some initial renovation has already been done.
0:02:18 > 0:02:23There's also a new blockwork drive and path, which is a bonus.
0:02:24 > 0:02:29The house forms part of this larger block of houses, which at some stage
0:02:29 > 0:02:32in the past were knocked together to create a large care home.
0:02:32 > 0:02:38Now, at some stage more recently they've actually re-converted back into individual houses.
0:02:38 > 0:02:42Work has commenced, it hasn't been finished, so let's find out what it's like inside.
0:02:46 > 0:02:48Ah, there you go...
0:02:48 > 0:02:51Bit of a clue as to the previous use of this property.
0:02:51 > 0:02:56Obviously this was an adjoining door through to the other houses in this block here.
0:02:56 > 0:03:01It's been blocked up now, but it's left you with quite a lot of damage to repair,
0:03:01 > 0:03:03especially the skirting board. That is beautiful.
0:03:03 > 0:03:08Those classic 9-10 inch skirting boards, so Victorian.
0:03:08 > 0:03:10You'd want to put the same thing back.
0:03:10 > 0:03:13You're either going to have to go to an architectural salvage place
0:03:13 > 0:03:17or get a bit of a specialist company in to replace that as it was.
0:03:17 > 0:03:20While I'm on the floor, look at these beautiful Minton tiles.
0:03:20 > 0:03:24Again it's going to take a bit of a specialist to sort those out.
0:03:24 > 0:03:26But definitely worth doing.
0:03:26 > 0:03:29You want to try and just get some of the magic of this house back.
0:03:29 > 0:03:33You've got big rooms to work with, but they've been messed about with.
0:03:33 > 0:03:35Somebody's put these odd walls in there.
0:03:35 > 0:03:37They've taken out the original wall from there.
0:03:37 > 0:03:41And it's ruined the flow that these houses really have.
0:03:41 > 0:03:45Fireplace... I mean, for goodness sake, I suppose this was a care home,
0:03:45 > 0:03:49so fireplaces weren't important. But you want to put
0:03:49 > 0:03:52a lovely old Victorian fireplace back there.
0:03:52 > 0:03:56Basically, just bring back the magic of this property.
0:03:56 > 0:04:02At the back of the house is another large reception room, and along the corridor, a downstairs toilet.
0:04:02 > 0:04:06Further along, a room that was once a canteen.
0:04:08 > 0:04:11There's also an office.
0:04:11 > 0:04:17If all these rooms were knocked together, there'd be space for a good sized family kitchen.
0:04:17 > 0:04:22But all these corridors make the property feel rather institutional.
0:04:22 > 0:04:28One big disappointment with the property, unfortunately, is here at the back.
0:04:28 > 0:04:33It is a disaster. You've got this area here where there's obviously been some kind of outbuilding.
0:04:33 > 0:04:36And then the garden, well it's just a concrete slab.
0:04:36 > 0:04:40There's no access really at the back, apart from a pathway.
0:04:40 > 0:04:43This needs to be a beautiful Victorian garden.
0:04:43 > 0:04:47As it is, it's a car park.
0:04:49 > 0:04:52Back inside, on the first floor there's a family
0:04:52 > 0:04:57bathroom that needs upgrading, and three more spacious bedrooms.
0:04:57 > 0:05:03At present these are all stripped back to bare walls, and need a great deal of attention.
0:05:06 > 0:05:08Up here in one of the bedrooms you can see,
0:05:08 > 0:05:12fairly horrible, a door from the days when this was a care home.
0:05:12 > 0:05:15Obviously you want to replace that with something a little more in keeping.
0:05:15 > 0:05:21This partition wall, again the layout of the room has been changed completely.
0:05:21 > 0:05:25You want to think about that, but the partition is not going to be difficult to get rid of.
0:05:25 > 0:05:28When it comes to the windows, these are actually fairly new.
0:05:28 > 0:05:30They're double glazed.
0:05:30 > 0:05:33However, as you can see, they are not that pleasant.
0:05:33 > 0:05:34They don't fit in with the house.
0:05:34 > 0:05:39And as it turns out, legally there is a stipulation that whoever buys this property
0:05:39 > 0:05:43has to replace these windows with something more in keeping.
0:05:43 > 0:05:46Sash windows, wooden ones, still be double glazed, whatever.
0:05:46 > 0:05:49They've got to look better than this. Thank goodness!
0:05:49 > 0:05:55# I don't really want you, I don't really need you.
0:05:55 > 0:06:00# I don't want to have you I don't really love you... #
0:06:01 > 0:06:06Returning inside, and on the second floor things are looking a lot better.
0:06:06 > 0:06:11There are signs that the previous owner had already started to renovate this part of the property.
0:06:11 > 0:06:17Up here on the top floor, three more bedrooms, although one of them is fairly small.
0:06:17 > 0:06:21At this point you could be thinking, why not convert this house into flats?
0:06:21 > 0:06:25Well, apart from being a great shame, you can't do it legally.
0:06:25 > 0:06:29The legal pack stipulates that this can't be converted back into a care home, it has to
0:06:29 > 0:06:33remain for residential use, and it can't be converted into flats.
0:06:33 > 0:06:36If you bought this place thinking, I'll convert it into flats,
0:06:36 > 0:06:39and you hadn't read the legal pack, you'd be in trouble.
0:06:39 > 0:06:42So, always read the small print.
0:06:42 > 0:06:47This spacious house with its six bedrooms, one toilet, bathroom and no apparent kitchen,
0:06:47 > 0:06:53is going to present the new owner with a huge challenge.
0:06:53 > 0:06:56I asked the auctioneer who sold it for his opinion.
0:06:59 > 0:07:01We're on the north side of Derby,
0:07:01 > 0:07:03just half a mile from the city centre.
0:07:03 > 0:07:06In a very desirable area.
0:07:06 > 0:07:09These were very fashionable houses some years ago.
0:07:09 > 0:07:13I think as a single house it's got very limited rental prospects.
0:07:13 > 0:07:17Not very many people want a six-bedroomed house, unless they've got a very large family.
0:07:17 > 0:07:20When renovated as a single family residence,
0:07:20 > 0:07:26on today's market this would probably have a valuation of around £275,000.
0:07:26 > 0:07:33It would be easy to get carried away and spend around £100,000 renovating this place, restoring the original
0:07:33 > 0:07:37period features and bringing it back to its former glory.
0:07:39 > 0:07:42If bought for close to the guide price of 155,000,
0:07:42 > 0:07:49and renovation costs were kept low, that valuation of 275,000 could still mean a decent profit.
0:07:51 > 0:07:55Well, you can see what a grand old place this once was.
0:07:55 > 0:08:00But you can also see the amount of effort it's going to take to get it back to its former glory.
0:08:00 > 0:08:04So, who was willing to take on the challenge when it went to auction?
0:08:08 > 0:08:10Six-bedroomed accommodation.
0:08:10 > 0:08:12Start me on the guide at 155.
0:08:12 > 0:08:16150,000? 150, may I say?
0:08:16 > 0:08:18150? 150 I have.
0:08:18 > 0:08:21At 150,000, thank you.
0:08:21 > 0:08:23Who'll raise it by £1,000?
0:08:23 > 0:08:26At 150... Opening bid, 151.
0:08:26 > 0:08:33152 is bid. 152... 153. 154.
0:08:33 > 0:08:37154 and five. 155. 156 in the middle.
0:08:37 > 0:08:41156. 157 on the right. 58 is bid.
0:08:41 > 0:08:43158. 159.
0:08:43 > 0:08:47160. 160,000... 61.
0:08:47 > 0:08:49Seated bid, 61.
0:08:49 > 0:08:52162. 163.
0:08:52 > 0:08:5564. 165.
0:08:55 > 0:08:58166.
0:08:58 > 0:09:01166 and seven. 168.
0:09:01 > 0:09:03169.
0:09:03 > 0:09:05170.
0:09:05 > 0:09:08At £170,000 for the first time...
0:09:08 > 0:09:10For the second time...
0:09:10 > 0:09:15Out on this side, no mistakes. Third and last time, all done at £170,000!
0:09:15 > 0:09:16Sold, sir. It's yours, 170.
0:09:16 > 0:09:19Thank you.
0:09:19 > 0:09:24IT worker Nick and his partner, Cath, an accountant,
0:09:24 > 0:09:30bought the property for 170,000 - 15,000 over the guide price.
0:09:30 > 0:09:34They'll have their work cut out to make this into a comfortable home.
0:09:34 > 0:09:39While Cath looked around, I asked Nick why they needed such a huge property.
0:09:39 > 0:09:42Well, there are five of us at the moment, and I've
0:09:42 > 0:09:46got another couple of children that don't live with us but come to visit.
0:09:46 > 0:09:48It's impractical, the house we're in.
0:09:48 > 0:09:51- Did the state of it put you off at all?- Eh...
0:09:51 > 0:09:54No, we knew what to expect, really.
0:09:54 > 0:09:57So tell me what you're going to do to it?
0:09:57 > 0:10:00I'm going to try to put it back to its original state.
0:10:00 > 0:10:03Knock out a lot of walls, recreate all the big rooms that it had.
0:10:03 > 0:10:07Knock all the back out, create a big kitchen there.
0:10:07 > 0:10:12Just get it back to the state it would have originally been in.
0:10:12 > 0:10:14Who's going to take it on? Who's going to do the work?
0:10:14 > 0:10:18A combination of us and contacts.
0:10:18 > 0:10:20Some of it we can do ourselves, but I'm not going
0:10:20 > 0:10:25to run in a gas supply or rewire the house, or that sort of stuff.
0:10:25 > 0:10:28For Nick and Cath, this will be their
0:10:28 > 0:10:32first major renovation project, and they have ambitious plans.
0:10:32 > 0:10:35But they're going to need a lot of cash to make them work.
0:10:37 > 0:10:40How much have you set aside to sort it out?
0:10:40 > 0:10:42Between 70 and 100.
0:10:42 > 0:10:45Oh, wow! A realistic budget.
0:10:45 > 0:10:47Well actually, a very big budget.
0:10:47 > 0:10:50Well, we're hoping to do it for the bottom end of that.
0:10:50 > 0:10:53It just depends what needs doing, really.
0:10:53 > 0:10:58We don't know if there's lots of surprises waiting for us when we start knocking it about.
0:10:58 > 0:11:01So what about a timescale for the work?
0:11:01 > 0:11:08I'll probably start in about six weeks, and would hope to have the house habitable within six months.
0:11:08 > 0:11:14Not finished. The idea is to move in whilst it still needs work.
0:11:14 > 0:11:17And then hopefully have it done within about a year.
0:11:17 > 0:11:19So listen, good luck with it all. Congratulations.
0:11:19 > 0:11:24I really look forward to seeing how you transform it back to its former glory.
0:11:24 > 0:11:28Or as close as we can get it!
0:11:28 > 0:11:32Well, Nick and the family know they've taken on a major project here.
0:11:32 > 0:11:35And although they've set aside a very reasonable budget, I think it
0:11:35 > 0:11:40won't be long before that 70,000 quid is spent. It's a big house.
0:11:40 > 0:11:45And once you start putting back the original features it's crying out for, the cash will soon go.
0:11:45 > 0:11:52Anyway, you can find out how they get on bringing this glorious place back to life, later in the show.
0:11:56 > 0:12:02I'm in Colliers Wood, South West London, an area with the dubious honour of being home to this.
0:12:02 > 0:12:06According to a BBC poll taken a few years ago,
0:12:06 > 0:12:10the disused Colliers Wood Tower is London's most hated building.
0:12:10 > 0:12:15Let's hope our property is rather more pleasing to the eye.
0:12:15 > 0:12:19The property I'm here to see is slap bang between Colliers Wood and
0:12:19 > 0:12:23Tooting Broadway Tube stations, and a short walk from each.
0:12:23 > 0:12:29So, in 30 minutes you could be living it up in Leicester Square, or busy in the City at Bank - perfect.
0:12:29 > 0:12:33Now the property itself is this 1940 end-of-terrace.
0:12:33 > 0:12:41It's a flat with four rooms, kitchen and bathroom, and it's got a guide price of 130,000.
0:12:41 > 0:12:43But there's something else you don't know.
0:12:43 > 0:12:46The flat...
0:12:46 > 0:12:47the railway line.
0:12:52 > 0:12:55Oh, dear. It all seemed so promising.
0:12:55 > 0:12:57I am disappointed.
0:12:57 > 0:13:00The railway line couldn't be much closer.
0:13:00 > 0:13:08Noisy neighbours are a common enough problem, but a rail track so close to your property takes the biscuit.
0:13:08 > 0:13:12The road out front is pleasant though, and at least you have your own front door.
0:13:15 > 0:13:18So let's start by getting that fake leather screen out of the way.
0:13:18 > 0:13:20It doesn't really bode well.
0:13:20 > 0:13:23So we're upstairs in the flat, and to the front the property
0:13:23 > 0:13:28you've got three rooms - two fairly good size and one box room.
0:13:28 > 0:13:32Now at the back of the property you've got what would have been the living area.
0:13:32 > 0:13:36And straightaway I'm walking into a room that's incredibly small.
0:13:36 > 0:13:39It doesn't feel spacious in this flat at all.
0:13:39 > 0:13:42You can tell somebody obviously took care of this property.
0:13:42 > 0:13:46But it's just extremely dated. It's old, it needs modernising.
0:13:46 > 0:13:47I mean, look at the wallpaper.
0:13:47 > 0:13:51Polystyrene tiles up here, which are a fire hazard.
0:13:51 > 0:13:54You've got an old fire here with an old fire surround.
0:13:54 > 0:13:56It all needs starting again.
0:13:56 > 0:13:58So for me,
0:13:58 > 0:14:00it's not a great start.
0:14:02 > 0:14:04The configuration is odd, to say the least.
0:14:04 > 0:14:08As this is a maisonette, these flats would have been designed this way,
0:14:08 > 0:14:11and not be the result of a later conversion.
0:14:12 > 0:14:20This room is a very good size. If you removed those cupboards, there'd be even more space to play with.
0:14:20 > 0:14:27The little pink box room is just that, but convertible into an office or nursery.
0:14:27 > 0:14:31The middle bedroom seems to be something in between.
0:14:31 > 0:14:34But where's the kitchen?
0:14:34 > 0:14:39Hello! Now you could be forgiven for thinking you found me in a cupboard!
0:14:39 > 0:14:43But no, this is the kitchen, or kitchenette. A bit small.
0:14:43 > 0:14:47I don't know what you'd call it apart from utterly inadequate.
0:14:47 > 0:14:50And to top it off, the bathroom is next door.
0:14:50 > 0:14:53But at least you can check your spuds aren't boiling over while you're having a bath.
0:14:56 > 0:14:59Bijou, snug and cosy are terms that could describe this flat.
0:14:59 > 0:15:03But I can't help feeling a bit boxed in.
0:15:03 > 0:15:07# I'm-a living in a box, I'm-a living in a cardboard box
0:15:07 > 0:15:10# I'm-a living in a box. #
0:15:10 > 0:15:14To create some space, relocating the bathroom into the box room would be an ideal solution.
0:15:14 > 0:15:18But it's a big job when you contemplate the plumbing needed.
0:15:21 > 0:15:25I'd certainly get the kitchen out of here, and put it where the lounge is.
0:15:25 > 0:15:32But to do that probably means losing another room, since you'd still need somewhere to sit and relax.
0:15:32 > 0:15:35So it's all a bit of a compromise once you start thinking about it.
0:15:35 > 0:15:40But when it comes to compromises, that garden's in a league of its own.
0:15:40 > 0:15:42So you've had a hard day in the city,
0:15:42 > 0:15:47the sun's out, you want to relax in your own private garden - perfect.
0:15:47 > 0:15:50Well, not quite - because of that!
0:15:50 > 0:15:56It's not the busiest line, granted, and you can expect trains every 15 minutes or so.
0:15:56 > 0:15:59But that's just enough time to sit down, glass of wine in hand, doze
0:15:59 > 0:16:05off - only to be rudely awoken by the clattering of the 18:32!
0:16:05 > 0:16:07That's not the best way to relax now, is it?
0:16:09 > 0:16:12The new owner of this property may wish that the trains didn't run on time.
0:16:12 > 0:16:18And the impact of the railway doesn't end here.
0:16:18 > 0:16:21So how's the view from the front window?
0:16:23 > 0:16:26Train track.
0:16:26 > 0:16:30Oh, and what about the middle room?
0:16:30 > 0:16:33Train track.
0:16:33 > 0:16:35And finally, the living room.
0:16:35 > 0:16:41So, go on, I bet you never guess what's behind this curtain - go on, guess? Leaning Tower of Pisa?
0:16:41 > 0:16:45No! The train track!
0:16:45 > 0:16:49I hate to say it, but I can't shake the feeling of being surrounded.
0:16:49 > 0:16:55The garden could be lovely, but with a view only trainspotters could love, it's a bit of a letdown.
0:16:56 > 0:17:03To get an independent opinion, I invited around a local estate agent to see what he thought.
0:17:03 > 0:17:06'I don't think there's much you can do to change it around.'
0:17:06 > 0:17:11It's not got a big footprint to do anything fantastic with it, or exceptional.
0:17:11 > 0:17:14But what I would do is move the kitchen from where it is,
0:17:14 > 0:17:17bring it forward into the room before there,
0:17:17 > 0:17:19and maybe turn that into a small utility room out there.
0:17:19 > 0:17:23Also, it gives you room to maybe expand the bathroom a little bit, which is a little bit small.
0:17:23 > 0:17:25But generally, the rest of the flat is a good size.
0:17:25 > 0:17:27'It looks in good condition, it just needs redecorating.'
0:17:27 > 0:17:30I think the property will rent, but once again it will be subject to price.
0:17:30 > 0:17:32I think you're looking at realistically somewhere between
0:17:32 > 0:17:35750 per calendar month to 825 per calendar month.
0:17:35 > 0:17:41As I see the property today, I'd value it at around the 175, 180 mark.
0:17:41 > 0:17:46It possibly could be worth, after work's done to it, up in the early two hundreds.
0:17:46 > 0:17:51200,000, 205, 210,000, depending on what's done to it.
0:17:51 > 0:17:54Well, there's no getting away from it - this place
0:17:54 > 0:17:57is in a bit of a state and needs some serious reorganising.
0:17:57 > 0:18:00And that train line is loud.
0:18:00 > 0:18:03But I still think this flat could be something to shout about.
0:18:03 > 0:18:06At that guide price and in this convenient location,
0:18:06 > 0:18:11if you're careful it could be a fast track to a good profit.
0:18:11 > 0:18:13Let's find out who spotted it at the auction.
0:18:15 > 0:18:18Colliers Wood now, Lot 30.
0:18:18 > 0:18:21A four-room purpose-built flat.
0:18:21 > 0:18:24Start low, 120.
0:18:24 > 0:18:27120 anywhere?
0:18:27 > 0:18:28Thank you, 120.
0:18:28 > 0:18:31125?
0:18:31 > 0:18:33Anyone else?
0:18:33 > 0:18:37120, first time... Second time...
0:18:37 > 0:18:40Third and last time...
0:18:40 > 0:18:42135, madam?
0:18:42 > 0:18:43140.
0:18:43 > 0:18:45145.
0:18:45 > 0:18:47150 on the phone.
0:18:47 > 0:18:50151...
0:18:50 > 0:18:52It's going at 151...
0:18:52 > 0:18:53First time... second time...
0:18:53 > 0:18:57Third and last time... 152.
0:18:57 > 0:19:03152 to the phone, first time, second time, third... 153 in the room.
0:19:03 > 0:19:05153 in the room.
0:19:05 > 0:19:07First time, second time...
0:19:07 > 0:19:09154.
0:19:09 > 0:19:11155.
0:19:11 > 0:19:14155 in the room.
0:19:14 > 0:19:17First time, second time... Third and last time...
0:19:17 > 0:19:19Have you all done?
0:19:22 > 0:19:25156, aren't I?
0:19:25 > 0:19:27157.
0:19:27 > 0:19:31157, sir. 157. 158.
0:19:33 > 0:19:37157, first time, second time...
0:19:37 > 0:19:39Third and last time - have you all done?
0:19:40 > 0:19:43Sold, 157. Well done.
0:19:43 > 0:19:46Hard luck, the telephone.
0:19:46 > 0:19:50That winning bid of 157,000 came from Basim.
0:19:50 > 0:19:57Originally from Lebanon, he now lives in Surrey and works as an oil and gas engineer.
0:19:59 > 0:20:02Buying property is a brand-new venture for him.
0:20:02 > 0:20:08So, what are his plans for this Colliers Wood flat, and more importantly, does he like trains?
0:20:08 > 0:20:12What did you think when you first saw the train line on your viewing?
0:20:12 > 0:20:16I thought it might be a problem.
0:20:16 > 0:20:20But the estate agent said it'll put some buyers off, but it won't put everybody off.
0:20:20 > 0:20:25It's not like a big bad thing, because he said
0:20:25 > 0:20:27you get used to the trains. There were people living here,
0:20:27 > 0:20:31and there will always be people living beside the train lines, in all the other houses.
0:20:31 > 0:20:34Therefore, you'll find some buyers that will compromise and say,
0:20:34 > 0:20:37"That's OK, we've got the windows, for example, for extra light."
0:20:37 > 0:20:40How did you find the auction? A little bit nervous, were you?
0:20:40 > 0:20:43Nervous, yes. Very nervous, actually.
0:20:43 > 0:20:46It's all coming out, the truth! So, tell me how you were feeling while you were bidding.
0:20:46 > 0:20:48I wasn't going to bid.
0:20:48 > 0:20:53I went there thinking that I was just going to test it and experience the whole auction.
0:20:53 > 0:20:58But, then, the price was going for quite cheap compared to what I thought.
0:20:58 > 0:21:02I held my hand up, and then another one bid against me.
0:21:02 > 0:21:04It went up, up, up.
0:21:04 > 0:21:06I thought no, then yes, then no.
0:21:06 > 0:21:10Then I came up to 157, and then nobody bid over me.
0:21:10 > 0:21:15Then the hammer stuck down and I took it, so I was quite shocked, thinking,
0:21:15 > 0:21:18"What have I done? Did I make a mistake?"
0:21:18 > 0:21:21So, what are you going to do, Basim, to really make this flat stand out?
0:21:21 > 0:21:24The bathroom, I'm going to make it bigger.
0:21:24 > 0:21:28And then the kitchen, get rid of it.
0:21:28 > 0:21:31And move it in here, to the lounge.
0:21:31 > 0:21:36And then the other lounge stays as a lounge, and there will be a bedroom in the bedroom.
0:21:36 > 0:21:41Redecorate all the bedrooms, paint them, get rid of the ceiling which is polystyrene right now.
0:21:41 > 0:21:43And these tiles.
0:21:43 > 0:21:47Yes, all these tiles. Rewire it all, because we've got to rewire, because right now I think it's illegal.
0:21:47 > 0:21:52And do the plumbing. And then put central heating system everywhere.
0:21:52 > 0:21:54How much money have you got to spend on all this?
0:21:54 > 0:21:57At the beginning, I thought it was going to be £10,000.
0:21:57 > 0:22:00- But I think that's wrong.- I think you can at least double that.
0:22:00 > 0:22:04Yes. That's what the builder said, he said between 15 to tops 20.
0:22:04 > 0:22:06So, you've purely bought this flat to make money, Basim?
0:22:06 > 0:22:10You've got to be extremely careful about your budget.
0:22:10 > 0:22:11You can't let it run away.
0:22:11 > 0:22:17- No.- Are you already feeling slightly bogged down by all the choices and all the decisions you have to make?
0:22:17 > 0:22:21- Not slightly, a lot, actually. - So you're feeling quite bogged down at the moment?- I am, yes.
0:22:21 > 0:22:25Because I work full-time, and then I've got to do all this other stuff,
0:22:25 > 0:22:27and obviously I've got to finish it on time so I can sell it.
0:22:27 > 0:22:31Because I got some help from my dad, actually, with this flat.
0:22:31 > 0:22:35So it's kind of critical, and he wants to see some profit too.
0:22:35 > 0:22:39So he wants his boy to be phoning him up at the end of the day saying,
0:22:39 > 0:22:41"Dad, I've just made loads of money on this flat in London."
0:22:41 > 0:22:42Exactly.
0:22:42 > 0:22:44Basim, good luck with this.
0:22:44 > 0:22:47- You've got a lot of hard work ahead, well done.- Thank you very much.
0:22:47 > 0:22:50- Thank you.- Nice meeting you.
0:22:50 > 0:22:53The pressure is on for Basim to turn a profit here.
0:22:53 > 0:22:57But if he does his sums, well, this flat could just be the ticket.
0:22:57 > 0:23:04But will he be able to keep his eyes on the builders, will his first development go off the rails?
0:23:04 > 0:23:07Well, you can find out later on in the programme.
0:23:08 > 0:23:11In Sunderland, this two-bedroom flat looks too good to be true.
0:23:11 > 0:23:13And it is.
0:23:13 > 0:23:16That would put a lot of people off.
0:23:19 > 0:23:25We return to south-west London to see if things are on track for this novice developer.
0:23:25 > 0:23:28For one month it was very, very difficult and very busy.
0:23:30 > 0:23:33But first, we reveal the secret of design harmony.
0:23:33 > 0:23:38The colour scheme was a joint decision. Kath picks it and I agree.
0:23:41 > 0:23:46We're back in Derby, where local couple Kath and Nick paid £170,000
0:23:46 > 0:23:52for one of these houses, which had previously formed part of a care home.
0:23:52 > 0:23:54It was going to take a lot of effort,
0:23:54 > 0:23:58and a serious budget, to bring this place back to its former glory.
0:23:58 > 0:24:01How much have you set aside to sort it out?
0:24:01 > 0:24:04Between 70 and 100.
0:24:04 > 0:24:06Wow! A realistic budget.
0:24:06 > 0:24:08Well, actually, a very big budget.
0:24:08 > 0:24:11Well, we're hoping to do it for the bottom end of that.
0:24:11 > 0:24:17Well, a year later, we've returned to see how they fared turning it into a home.
0:24:17 > 0:24:23Needing lots of refurbishment and modernisation, this three-storey late Victorian villa
0:24:23 > 0:24:27came with six bedrooms and space for a sitting room and dining room.
0:24:29 > 0:24:37There was a family bathroom in pink and chocolate, not everyone's favourite colour scheme.
0:24:37 > 0:24:41And a back garden crying out for some TLC.
0:24:43 > 0:24:47Well, the first time I saw it, I thought, "It's a bit of a tip."
0:24:47 > 0:24:50But it's just the size.
0:24:50 > 0:24:52I had a look round and thought there was a lot of work here, but it
0:24:52 > 0:24:56wasn't structural work, it was more cosmetic, really.
0:24:56 > 0:24:59- To be honest, we just fell in love with it, Nick.- Well...
0:25:01 > 0:25:04But the price of love can be steep.
0:25:04 > 0:25:09Even with a reasonable budget of between 70 and 100,000,
0:25:09 > 0:25:15it was going to take a lot of effort to turn this near derelict interior into a comfortable family home.
0:25:23 > 0:25:25Our kids have been a big help.
0:25:25 > 0:25:29They came in right at the start and did a lot of the hard physical work
0:25:29 > 0:25:32of knocking down doors and taking the rubble out and everything.
0:25:32 > 0:25:35And then they've come back in later and helped with the decorating.
0:25:35 > 0:25:37The colour scheme is a joint decision.
0:25:37 > 0:25:39Basically, Kath picks it and I agree.
0:25:39 > 0:25:42That's the way it tends to work out.
0:25:42 > 0:25:47Nick, Kath and their children had hoped to move in after six months.
0:25:47 > 0:25:51And then to complete all the work within a year. So, how did they do?
0:25:54 > 0:25:59Well, they bought the house without a survey, and have had to completely replace the roof.
0:26:02 > 0:26:05All the rooms have been re-plastered and painted.
0:26:09 > 0:26:15And the vintage skirting boards have also been restored.
0:26:15 > 0:26:19The skirtings, what we did was chopped out an original piece of the skirting and took it down
0:26:19 > 0:26:25to a local carpenter, who then had a mould made, and ran off
0:26:25 > 0:26:28100 metres or whatever it took.
0:26:28 > 0:26:31New doors have been fitted throughout.
0:26:31 > 0:26:38That helps remove any lingering institutional feel after its days as a care home.
0:26:38 > 0:26:43The house has been fully rewired and replumbed, which unfortunately gave them their biggest headache.
0:26:43 > 0:26:45So this is the master bedroom.
0:26:45 > 0:26:50It was originally two rooms, but we decided we wanted an en suite, so we knocked through into this room.
0:26:50 > 0:26:53This is where we encountered a problem with the plumbing.
0:26:53 > 0:26:57But there's a big steel girder across the front of the house, which meant we had to run it round
0:26:57 > 0:27:00this way, and make the appliances fit the plumbing.
0:27:00 > 0:27:04Which left us with a little bit of a problem getting into the shower.
0:27:04 > 0:27:08But generally, it's good. It's a good bathroom, we like it.
0:27:11 > 0:27:15The main family bathroom on the first floor has been thoroughly
0:27:15 > 0:27:18modernised, with stylish new fittings.
0:27:18 > 0:27:21There's new flooring and carpeting throughout.
0:27:24 > 0:27:26And the fireplaces have been reinstated in
0:27:26 > 0:27:31the ground floor reception rooms to complete the homely feel.
0:27:32 > 0:27:37But the piece de resistance is undoubtedly the brand-new kitchen.
0:27:37 > 0:27:39Kath's pride and joy.
0:27:41 > 0:27:42This is the kitchen.
0:27:42 > 0:27:46Originally, it was a corridor and two rooms.
0:27:46 > 0:27:54We've taken the dividing walls out, so now we've got a kitchen that we really like. It's big.
0:27:54 > 0:27:57We've got the cooker that we really love.
0:27:57 > 0:28:01We brought a lot of the stuff with us from the old house.
0:28:01 > 0:28:05We've sort of fitted it into how we like the kitchen to be.
0:28:07 > 0:28:10It looks like they've spent most of their renovation budget.
0:28:10 > 0:28:15Yet there are still some areas needing attention.
0:28:15 > 0:28:18We've spent about £75,000 so far.
0:28:18 > 0:28:20But we reckon there's a bit more to come.
0:28:20 > 0:28:24The work left to do, really, is the hall and stairs.
0:28:24 > 0:28:27Sorting out the floor in the hall where there's a bit of damp.
0:28:27 > 0:28:30Getting the stairs stripped down and repainted.
0:28:30 > 0:28:32Carpeted. That's the main part of the work.
0:28:32 > 0:28:35Then there's the garden which is just going to have to wait.
0:28:37 > 0:28:43With that damp in the hallway, what's happened about those beautiful old Minton tiles?
0:28:43 > 0:28:47The Minton tiles are quite badly damaged, but luckily, our neighbour had an identical
0:28:47 > 0:28:52which he's taken up, so he's given us all his old tiles.
0:28:52 > 0:28:55So we reckon, between the tiles we've got and the tiles he's given
0:28:55 > 0:28:59us, it should be possible to restore it back to its original condition.
0:28:59 > 0:29:03That's good news. But remember those awful modern windows?
0:29:03 > 0:29:07As they're in a conservation area, they were replaced with double
0:29:07 > 0:29:12glazed wooden units, more in keeping with the surrounding properties.
0:29:15 > 0:29:19Nick and Kath have taken great care to turn his back into a really elegant home.
0:29:19 > 0:29:23So, has the money and time spent been a good investment?
0:29:26 > 0:29:28We invited back the auctioneer who sold the property to them,
0:29:28 > 0:29:33and another local estate agent, to give us their opinions.
0:29:33 > 0:29:37I'm really impressed. It's a lovely house, anyway, lots and lots
0:29:37 > 0:29:41of character to it as these old Victorian town houses used to have.
0:29:41 > 0:29:47But he's put it back into a single residence, lots of space. Really appealing.
0:29:47 > 0:29:49They've certainly retained many of the original features.
0:29:49 > 0:29:52I noticed the original tiled flooring in the hallway,
0:29:52 > 0:29:56and the wooden sash windows at the front
0:29:56 > 0:29:59of the property, which is in keeping with the conservation area.
0:30:01 > 0:30:03They bought the property for £170,000,
0:30:03 > 0:30:10invested £75,000 on refurbishing it, and plan to spend another £5,000 on the remaining work.
0:30:10 > 0:30:13That's a total of £250,000.
0:30:13 > 0:30:17Could they hope to see any profit if they were to sell?
0:30:18 > 0:30:21I think he's done an intelligent job
0:30:21 > 0:30:25in altering the accommodation to what it is now.
0:30:25 > 0:30:28It works as a family house.
0:30:28 > 0:30:32- It's good.- It's certainly an eye-catching property.
0:30:32 > 0:30:36It's presented over three floors, really high ceilings, so it's got
0:30:36 > 0:30:38the wow factor when you walk in.
0:30:38 > 0:30:43On today's market I think it would probably achieve something in the region of £275,000.
0:30:43 > 0:30:49I'd value this property at between £275,000 and £295,000.
0:30:49 > 0:30:54That's a potential pre-tax profit of up to £40,000.
0:30:54 > 0:30:56Are they at all tempted?
0:30:56 > 0:31:02We've done this really because we wanted a bigger house, we haven't looked at it as an investment.
0:31:02 > 0:31:05We haven't looked to make any money out of it.
0:31:05 > 0:31:10It's good that it's held its value and we won't lose anything out of doing it.
0:31:10 > 0:31:11It's our home.
0:31:11 > 0:31:15The value has held and
0:31:15 > 0:31:20I think it'll probably go up in value as the market changes.
0:31:20 > 0:31:25So, it's good that it's worth more than we've spent. It's not easy,
0:31:25 > 0:31:27but you survive
0:31:27 > 0:31:30and it's worth it in the end. And it is good fun.
0:31:35 > 0:31:39I'm in Sunderland in the north-east of England at the mouth of the River Wear.
0:31:39 > 0:31:44Once known for its shipping industry, the area is now famous for a different reason.
0:31:44 > 0:31:52Technology-friendly Wearside now has more digital TV viewers than anywhere else in Britain.
0:31:52 > 0:31:54Apparently.
0:31:55 > 0:32:01Well, the property I'm here to see is in the middle of this techno-mad community.
0:32:01 > 0:32:03It's in this building here.
0:32:03 > 0:32:07Hammerton Hall, which used to be a hospital in the First World War.
0:32:07 > 0:32:12It's a two-bedroomed flat at a guide price of £55,000.
0:32:12 > 0:32:18The big question is, will it need emergency surgery or be fit and ready for discharge?
0:32:18 > 0:32:25Hammerton Hall has been extensively modernised, and is now made up of eight privately-owned flats.
0:32:25 > 0:32:31More important, though, is the fact that in 2007 this flat sold for £170,000.
0:32:31 > 0:32:39That's an amazing 115,000 more than the guide price it went to auction for this time round.
0:32:40 > 0:32:43Nice room. I love the shape of this, I guess
0:32:43 > 0:32:46that's what you get with flats that are converted from old buildings.
0:32:46 > 0:32:51You've got the lovely windows there, floor-to-ceiling with the lead light in them. What this?
0:32:51 > 0:32:53Yes, an en suite.
0:32:53 > 0:32:54Looking good.
0:32:57 > 0:33:01Second bedroom. Another sizable space and,
0:33:01 > 0:33:03another en suite.
0:33:03 > 0:33:06This is looking REALLY good.
0:33:06 > 0:33:09This spacious two-bedroom flat seems to be in really good condition.
0:33:09 > 0:33:12It might have storage heaters rather than central heating,
0:33:12 > 0:33:22and the colour scheme may not be to everyone's taste, but there's a beautiful communal garden outside.
0:33:22 > 0:33:24Two en suite bedrooms.
0:33:24 > 0:33:30And a smart bathroom, all for a guide price of £55,000.
0:33:31 > 0:33:34But something is not quite right here.
0:33:37 > 0:33:41Another bathroom, there. Fab, fab, fab. And then through into
0:33:41 > 0:33:44this, which is a large open-plan living area.
0:33:44 > 0:33:47I mean what a gorgeous flat.
0:33:49 > 0:33:52But there's a problem. And it's here
0:33:52 > 0:33:55in the open-plan kitchen area.
0:33:55 > 0:33:56I mean,
0:33:56 > 0:33:59look at that. That's not good.
0:33:59 > 0:34:04This is a really serious problem, because it's a leak which is coming
0:34:04 > 0:34:08from the flat above here, you can see water has been dripping down.
0:34:08 > 0:34:11It's caused the plasterboard in this place just to fall away, there's
0:34:11 > 0:34:14water all over the floor that will be going down into the flat below.
0:34:14 > 0:34:17Thankfully, most of the water is dripping into the sink,
0:34:17 > 0:34:19otherwise goodness knows how many problems there would have been.
0:34:19 > 0:34:24Theoretically, this is the responsibility of the management company of the building.
0:34:24 > 0:34:28But you've got to get access to the flat above, so what if that's empty? What if you can't get in there?
0:34:28 > 0:34:33You need to fix that, and you need to fix it soon. So maybe you could fix it from down here.
0:34:33 > 0:34:35Maybe you could take this plasterboard down and there
0:34:35 > 0:34:37are pipes, but how are you going to turn the water off?
0:34:37 > 0:34:41Maybe you could freeze it. But they aren't your pipes to fix.
0:34:41 > 0:34:44All in all, that is a big problem.
0:34:44 > 0:34:48That's probably why the guide price was so low.
0:34:48 > 0:34:54So, is this property a poisoned chalice or a solid gold investment?
0:35:00 > 0:35:02I asked a local estate agent for his opinion.
0:35:05 > 0:35:08The guide price was quite a low guide price, but I think
0:35:08 > 0:35:12that's the impact of the apartments within the Sunderland market.
0:35:12 > 0:35:17'In reference to the water damage in the kitchen, I don't think that's going to put any buyers off,
0:35:17 > 0:35:21'because I think the asking price for the property was at a price
0:35:21 > 0:35:25'where you'd expect to come in and do some work, generally, to the property, anyway.'
0:35:25 > 0:35:33I'd put this property on the market for rent at a region of £500-£550 per calendar month.
0:35:33 > 0:35:35That sounds pretty healthy.
0:35:35 > 0:35:38What if the buyer decides to do it up for resale?
0:35:38 > 0:35:41Once renovation has been carried out on this
0:35:41 > 0:35:46apartment, I'd recommend an asking price of around about £100,000.
0:35:46 > 0:35:52100,000? If a new owner snapped up the property close to the £55,000
0:35:52 > 0:35:56guide price, they could make quite a profit, even after the cost of
0:35:56 > 0:35:59repairing the leak and redecoration.
0:35:59 > 0:36:01Not a bad afternoon's work.
0:36:01 > 0:36:06Well, bearing in mind the financial history of this place, remember it was sold for
0:36:06 > 0:36:14£170,000 around two years ago, the fact this had a guide price of £55,000 is almost unbelievable.
0:36:14 > 0:36:18And yet, that would put a lot of people off.
0:36:18 > 0:36:21And it's not necessarily going to be that easy to sort it out.
0:36:21 > 0:36:23So, a bit of a gamble?
0:36:23 > 0:36:27Let's find out who was willing to take it on when it went under the hammer.
0:36:27 > 0:36:30This auction took place late in the day,
0:36:30 > 0:36:33so there weren't many people around to bid.
0:36:33 > 0:36:35Lot 179 in Sunderland.
0:36:35 > 0:36:37Self-contained first floor flat.
0:36:37 > 0:36:39Somebody bid me 40,000. In Sunderland.
0:36:39 > 0:36:4140,000, may I say?
0:36:41 > 0:36:44Thank you. 40, 41?
0:36:44 > 0:36:4841, 42, 43, 44.
0:36:48 > 0:36:52OK, 45, why not? 46. 47.
0:36:52 > 0:36:5448.
0:36:54 > 0:36:5749 and 50. 51?
0:36:58 > 0:37:02No? Gentlemen standing back in the blue T-shirt at 50,000.
0:37:02 > 0:37:06Is there 51 anywhere else? It's against you, sat down.
0:37:07 > 0:37:09For the first time at 50.
0:37:09 > 0:37:11For the second time at 50.
0:37:11 > 0:37:16For the third and final time at £50,000, gentleman
0:37:16 > 0:37:17at the back. We're all done?
0:37:17 > 0:37:19Sold to you, sir.
0:37:19 > 0:37:27So, after just 40 seconds, the flat was snapped up for £50,000, £5,000 below the guide price.
0:37:27 > 0:37:32It was bought by Steven and his wife Carol, who run their own business in Sheffield.
0:37:32 > 0:37:37They already have a small portfolio of properties which they rent out.
0:37:37 > 0:37:42I wasted no time in asking them the crucial question on all our minds.
0:37:42 > 0:37:45What about the leaking roof? When was the first time you discovered it, when you walked into the door?
0:37:45 > 0:37:48- When we walked in today, yes. - No!- That's right.
0:37:51 > 0:37:54- So, what did you think? - What have we done?
0:37:54 > 0:37:56Well, it's only cosmetic. It'll repair.
0:37:56 > 0:37:58What do you mean, only cosmetic?
0:37:58 > 0:38:01It'll not take much repairing.
0:38:02 > 0:38:04- You hope!- We hope.
0:38:04 > 0:38:06If we can find where the leak is.
0:38:06 > 0:38:10That's the issue, you see. Because it's up there somewhere, and you don't know where it is.
0:38:10 > 0:38:12- That's the problem. - Also, it might not be your pipes.
0:38:12 > 0:38:14So you can't necessarily go mending it, can you?
0:38:14 > 0:38:19True. Time will tell.
0:38:23 > 0:38:27Let's hope it doesn't take too much time or money to fix this.
0:38:27 > 0:38:29It's always risky not viewing a property before an auction,
0:38:29 > 0:38:34even though Steve and Carol were buying on recommendation.
0:38:34 > 0:38:37- A friend of ours had viewed it, but we hadn't.- What did they say?
0:38:37 > 0:38:42He was looking at it to buy for himself, and then things didn't work out.
0:38:42 > 0:38:46So he showed interest in something else and
0:38:46 > 0:38:49- we went for it. - What did he say it was like?
0:38:51 > 0:38:55He said that he couldn't believe that it would go for anything like
0:38:55 > 0:38:59- 50K, he thought it would go for a lot more money than that.- Right.
0:38:59 > 0:39:03And he didn't tell us about the leaking roof.
0:39:03 > 0:39:07- He didn't tell you about the leaking roof?!- No.
0:39:09 > 0:39:13- Have you spoken to him since? - Not very often.
0:39:13 > 0:39:18So, what's the process for sorting this out, do you think?
0:39:18 > 0:39:21I think we've got to establish where the leak is actually coming from.
0:39:21 > 0:39:27So, the only way to do that is to take this ceiling down.
0:39:27 > 0:39:29I don't think it'll need a lot of help to come down.
0:39:29 > 0:39:32There's a danger, of course, that there's a million gallons of water up there.
0:39:32 > 0:39:36That when you take the ceiling down, there's going to be a big gush
0:39:36 > 0:39:38and this flat and the one below will get flooded.
0:39:38 > 0:39:41Possibly.
0:39:41 > 0:39:42Just bring a brolly!
0:39:44 > 0:39:48So, what's the kind of timescale for sorting it out?
0:39:48 > 0:39:51Start to finish, we hope six to eight weeks it'll be sorted.
0:39:51 > 0:39:54And how much money have you put aside to sort things out?
0:39:54 > 0:39:57Other than paying damages
0:39:57 > 0:40:01- and compensation!- Maximum 5K. - 5,000 quid?- Yes.
0:40:01 > 0:40:03I mean, intrinsically, it's a fantastic flat, isn't it?
0:40:03 > 0:40:06It's a brilliant place, it's just this one issue that needs to be sorted out.
0:40:06 > 0:40:09And then what's the plan for it? What are you going to do with it?
0:40:09 > 0:40:14We hope to rent it out until the property market improves.
0:40:14 > 0:40:18Right. Any idea how much you're going to rent it for?
0:40:18 > 0:40:22The local estate agent said we could get, if we put reasonable-quality
0:40:22 > 0:40:25furniture in it, round about £600 a month.
0:40:25 > 0:40:27Wow! For a £50,000 investment?
0:40:27 > 0:40:30- What a return, eh?- Mm-hm.- Brilliant.
0:40:30 > 0:40:33So, is this going to spur you on to other investments of the like?
0:40:33 > 0:40:35If it all goes smoothly.
0:40:35 > 0:40:37Yes.
0:40:37 > 0:40:41If we don't get too many lawsuits when we sort that out.
0:40:41 > 0:40:44- Good luck.- We might need it.
0:40:45 > 0:40:51Well, there you go. It just goes to show the importance of looking at properties before you buy them.
0:40:51 > 0:40:58And watch out, the residents of Hammerton Hall, when Steve goes prodding around with that ceiling.
0:40:58 > 0:41:01Literally gallons of water could come pouring through.
0:41:01 > 0:41:03You don't know what sort of things he's going to find.
0:41:03 > 0:41:08However, let's face it. I think they've still got a bargain.
0:41:08 > 0:41:10You can come back
0:41:10 > 0:41:15to the soggy remains of Hammerton Hall later in the show.
0:41:18 > 0:41:21In the property world, time is money.
0:41:21 > 0:41:24So the aim is to work quickly and get things done.
0:41:24 > 0:41:30So, have our new owners been successful or has time been their enemy? Let's find out.
0:41:32 > 0:41:38We're back at Dinton Road in south-west London, where first-time property developer Basim
0:41:38 > 0:41:42had bought a first-floor maisonette for 157,000.
0:41:42 > 0:41:45But there was a surprise waiting for him in the back garden.
0:41:48 > 0:41:51What did you think when you first saw the train line on your viewing?
0:41:51 > 0:41:55I thought that it might be a problem.
0:41:55 > 0:41:59But the estate agent said it is not like a big, big bad thing.
0:41:59 > 0:42:02# Train kept a-rolling all night long
0:42:02 > 0:42:04# Train kept a-rolling all night long
0:42:04 > 0:42:07# Train kept a-rolling all night long
0:42:07 > 0:42:09# Train kept a-rolling all night long... #
0:42:09 > 0:42:14Basim still has a realistic attitude to the train track that runs outside his flat.
0:42:14 > 0:42:18After all, it's something he can't change.
0:42:18 > 0:42:23His intention was to spend between 15 and 20,000
0:42:23 > 0:42:27getting the property back into shape and then sell it straightaway.
0:42:30 > 0:42:37Although not spacious, the flat had four rooms and a tiny bathroom, with an unusual en suite kitchen.
0:42:39 > 0:42:42The bathroom has been upgraded, with new fixtures and fittings.
0:42:45 > 0:42:50And the kitchen has been turned into a utility room, housing a new central-heating boiler.
0:42:50 > 0:42:53So, where is the kitchen now?
0:42:53 > 0:42:57Well, it's in the rear reception room, transforming this dowdy,
0:42:57 > 0:43:01dated space into a contemporary, stylish living area.
0:43:06 > 0:43:13We've put the new kitchen in here, so what we can see that we have discovered is a very nice fireplace.
0:43:13 > 0:43:16There used to be a sheet of plywood on it.
0:43:16 > 0:43:20We took it out and then we found the nice tiles.
0:43:20 > 0:43:27The fireplace has now been fully restored, and the room has become a relaxing, family-friendly space.
0:43:27 > 0:43:33Although this has meant losing one room, the flat still has a decent-sized double bedroom...
0:43:35 > 0:43:38..and a single room suitable for a child.
0:43:41 > 0:43:44There is also a bright, spacious living room at the front.
0:43:44 > 0:43:48So what is Basim most proud of?
0:43:48 > 0:43:51The thing I'm most pleased with is the bathroom and kitchen, actually,
0:43:51 > 0:43:55because they looked a really bad before that and now they look really, really nice.
0:43:55 > 0:43:59And I think this is what differentiates any flat from other flats.
0:43:59 > 0:44:02Most of the other rooms are basically rooms.
0:44:02 > 0:44:04Now the kitchen is big. You can move around.
0:44:04 > 0:44:09You can even have a dining table in there, where people have breakfast and stuff like that, for example.
0:44:09 > 0:44:15So I think it made a huge difference and made the flat look more modern than what it used to be.
0:44:16 > 0:44:20Did he manage to do all this within his initial budget?
0:44:20 > 0:44:24I spent, overall, £18,000.
0:44:24 > 0:44:29The only thing that I cut back on was the garden, where I was thinking of actually doing it all up.
0:44:29 > 0:44:32The garden would indeed have been a challenge, but
0:44:32 > 0:44:37for the sake of a quick turnaround, Basim has focused on the interior.
0:44:37 > 0:44:39But it's not all been easy for him.
0:44:39 > 0:44:41He has a very demanding job as an engineer,
0:44:41 > 0:44:46so fitting in the refurbishment has put him under a lot of pressure.
0:44:46 > 0:44:49A lot of times I was at work until ten o'clock,
0:44:49 > 0:44:53finishing my work and then staying in the office doing this work, the paperwork and all the other stuff.
0:44:53 > 0:44:59So then, for one month I think it was very, very difficult and very busy.
0:44:59 > 0:45:03But now, once you've finished it off, you think,
0:45:03 > 0:45:05"Thank God for that!"
0:45:07 > 0:45:13Now that his time doing double shifts is over, what are his plans for the flat?
0:45:13 > 0:45:18The plan right now for the property is to actually try to sell it and see how it goes.
0:45:18 > 0:45:20If I get the price I want, then I will sell it.
0:45:20 > 0:45:25If not, then I might rent it for a year or two years and then see how it goes afterwards.
0:45:25 > 0:45:27I'm hoping to achieve £200,000.
0:45:27 > 0:45:31And if I do achieve that, I'll be very happy.
0:45:31 > 0:45:34I think that's the right price for it, which would give me a healthy profit.
0:45:34 > 0:45:37What about his dad, who part-funded the purchase?
0:45:37 > 0:45:40Is he in for a cut of the profit?
0:45:40 > 0:45:45My dad? I think I'll try to take all my profit myself!
0:45:45 > 0:45:48No! No, my dad is hoping to get some profit out of it, yes.
0:45:50 > 0:45:54To get an idea of what Basim and his dad might pocket if the property
0:45:54 > 0:45:58were sold, we asked two local estate agents for their thoughts.
0:46:02 > 0:46:05Really like it. They've made a lot of use of the space.
0:46:05 > 0:46:11'It's great that it's got its own garden, and it's a pretty good location as well.
0:46:11 > 0:46:17'Being next to a train line is the kind of thing that will bother some people, won't bother other people.
0:46:17 > 0:46:20'But you can overcome that by saying, look, if you want to live in London,'
0:46:20 > 0:46:23you are either going to get road noise, plane noise or train noise.
0:46:23 > 0:46:24You are in a cul-de-sac here,
0:46:24 > 0:46:26so you're going to have no traffic noise,
0:46:26 > 0:46:30and at the end of the day you do know when the trains are going to stop, whereas traffic is constant.
0:46:30 > 0:46:34Looking at the property now, I think he's done very, very well.
0:46:34 > 0:46:37Even with the train line there, I think he's done it to the right
0:46:37 > 0:46:40standard and level that he will recoup all of his money.
0:46:40 > 0:46:41There won't be a problem.
0:46:41 > 0:46:44The train line is a negative, but then, most properties do have them.
0:46:44 > 0:46:48Looking around, they have done a fantastic job on the re-plastering, re-wiring.
0:46:48 > 0:46:50The kitchen and bathroom look really, really great.
0:46:50 > 0:46:52They've done a really good job.
0:46:52 > 0:46:55The movement of the kitchen from where it was now has given
0:46:55 > 0:46:59a proper kitchen, a functional kitchen, which is perfect. I like it a lot.
0:46:59 > 0:47:06If Basim were to put this on furnished flat on the rental market, what kind of return could he expect?
0:47:06 > 0:47:09If I had to put it on the rental market, I would ask
0:47:09 > 0:47:13£950 per calendar month and hope to achieve around the £900 mark.
0:47:13 > 0:47:18If I were putting the property up for rent, I believe it would achieve around £850 per calendar month.
0:47:18 > 0:47:23At around 6%, that's a decent yield.
0:47:23 > 0:47:27It could tempt me to rent, but the problem with renting
0:47:27 > 0:47:30is that if I do it, the money is stuck in one place,
0:47:30 > 0:47:34whereas if I sell, I can keep using the money for other projects.
0:47:38 > 0:47:41He bought the flat for 157,000
0:47:41 > 0:47:44and spent £18,000 refurbishing and decorating it.
0:47:44 > 0:47:49So if he was to stick to his original plan of selling it quickly,
0:47:49 > 0:47:54what return might he get on his £175,000 investment?
0:47:54 > 0:47:57If I was putting this up for sale,
0:47:57 > 0:48:03I'd put it up for 199,950, looking to take an offer of about £195,000.
0:48:03 > 0:48:09If I had to put the property up for sale, I'd put it on the market for £199,950.
0:48:09 > 0:48:13Obviously, 200 is perfect for me. If I get that, I'll be very happy.
0:48:14 > 0:48:19So, after four and a half months of hard work, Basim and his dad can see
0:48:19 > 0:48:23a potential pre-tax profit of nearly £25,000.
0:48:26 > 0:48:28Has he caught the property-developing bug?
0:48:28 > 0:48:32I think the learning experience was very, very enjoyable.
0:48:32 > 0:48:35At some points, of course, I was thinking, "Why did I do this?
0:48:35 > 0:48:38I should have just stayed working in my normal full-time job."
0:48:38 > 0:48:42I would do this again. With a bigger project, actually.
0:48:42 > 0:48:46I'm hoping the next one will be my own house.
0:48:50 > 0:48:56We've returned to Sunderland, where Sheffield-based couple Steven and Carol bought
0:48:56 > 0:49:02a two-bedroom flat in Hammerton Hall sight unseen for only 50,000 quid.
0:49:02 > 0:49:06The catch was that the open-plan kitchen was turning into
0:49:06 > 0:49:10open water thanks to a leak from the ceiling above.
0:49:10 > 0:49:14There is a danger, of course, that there's a million gallons of water up there, that when
0:49:14 > 0:49:20you take the ceiling down there's going to be a big gush and this flat and the one below will get flooded.
0:49:20 > 0:49:22Possibly.
0:49:22 > 0:49:27Since that meeting, events have worked out largely to Steven and Carol's benefit.
0:49:27 > 0:49:33Their bargain-priced flat did not need a great deal of work to make it ready for the market.
0:49:33 > 0:49:37The only issue was what to do about that leaky ceiling.
0:49:37 > 0:49:39The leak?
0:49:39 > 0:49:41It wasn't as bad as we thought it was going to be, actually.
0:49:41 > 0:49:48When we did eventually get into the place, there was mushrooms growing on the wall.
0:49:48 > 0:49:50Obviously, the floor was very badly damaged.
0:49:50 > 0:49:55But we knew it could be mended, we knew we could get contractors in to deal with it.
0:49:55 > 0:49:58So, hey, we knew we'd got a good bargain.
0:49:58 > 0:50:04We ended up getting an emergency plumber out, expected there'd be a pipe there that needed repaired.
0:50:04 > 0:50:09When he took the ceiling down, there wasn't a pipe, so we found that the leak was coming from the flat above.
0:50:09 > 0:50:13After contacting the property's management company,
0:50:13 > 0:50:17Steven discovered the whole building was covered by insurance.
0:50:17 > 0:50:20An assessor came round to gauge the damage.
0:50:20 > 0:50:25We had an original estimated budget of about £5,000.
0:50:25 > 0:50:31The insurance came back to us and made us an offer in cash
0:50:31 > 0:50:35or they would appoint a contractor to go ahead and do all the repair work.
0:50:35 > 0:50:40We took the cash offer and got the work done ourselves.
0:50:40 > 0:50:42And that covered more or less everything, really.
0:50:42 > 0:50:45I can't wait any longer. Let's have a look at the new kitchen.
0:50:45 > 0:50:48This is where most of the damage was.
0:50:48 > 0:50:51The ceiling was down here,
0:50:51 > 0:50:56the water coming through the light fittings, dripping onto here.
0:50:56 > 0:50:59Damaged all the floor. And also, the floor in there was...
0:50:59 > 0:51:02was a mess.
0:51:02 > 0:51:08That beautiful oak flooring was in a sorry state before, but now it's come up a treat.
0:51:08 > 0:51:12When the contractor came in, he had to remove this wall,
0:51:12 > 0:51:14take these units out.
0:51:14 > 0:51:18He managed to save the tiles. Repaired the kitchen units.
0:51:18 > 0:51:23And he suggested, rather than try to match the floor, that we tile the floor.
0:51:23 > 0:51:26And we've just put ceramic tiles down.
0:51:26 > 0:51:30So that saved a chunk of the budget, really.
0:51:31 > 0:51:34And we're quite pleased with it. It works well.
0:51:34 > 0:51:37# I should be so lucky, lucky, lucky, lucky
0:51:37 > 0:51:41# I should be so lucky in love... #
0:51:41 > 0:51:45Steven and Carol have certainly been lucky.
0:51:45 > 0:51:49They've got a fabulous new kitchen all covered by that insurance claim.
0:51:49 > 0:51:55This means that they haven't had to dip into the £5,000 pot they set aside to do the work.
0:51:55 > 0:51:58And their good fortune doesn't end there.
0:51:58 > 0:52:01There was a bit left over from the insurance, so that went
0:52:01 > 0:52:03towards some of the painting and things.
0:52:03 > 0:52:08But with regards to the rest of it, probably about 1,500 we've spent.
0:52:08 > 0:52:13Most of this money was spent on sprucing the place up,
0:52:13 > 0:52:19re-plastering the walls, fitted carpet and new furnishings for the living room and bedrooms.
0:52:22 > 0:52:26But it hasn't all been plain sailing in this Sunderland flat.
0:52:26 > 0:52:31The couple had been project-managing the whole operation from Sheffield, where they live.
0:52:32 > 0:52:36Managing it from 120, 130 miles away is difficult.
0:52:36 > 0:52:40You can't just nip out in a morning, meet someone and go back to work.
0:52:40 > 0:52:43It's a full day's job
0:52:43 > 0:52:46and we've had to stay in hotels overnight and things whilst
0:52:46 > 0:52:51we've been here getting some of the repair work done and some of the painting done etc, etc.
0:52:51 > 0:52:55What are their plans now?
0:52:55 > 0:52:58We intend, short term, to rent it out.
0:52:58 > 0:53:00Next two or three years, see what happens to the markets.
0:53:00 > 0:53:04We think we it got a bargain when we bought it at 50.
0:53:04 > 0:53:07We were very, very surprised when we came in and saw what we'd got.
0:53:07 > 0:53:12We hope that it's worth at least double that now.
0:53:12 > 0:53:17We don't really want to sell it, but if someone came in with the right offer, we'd perhaps look at it.
0:53:17 > 0:53:22But at this moment in time, we think the rental market is the best option for us.
0:53:24 > 0:53:29Steven and Carol snapped up this property for an amazing £50,000.
0:53:29 > 0:53:35Thanks to the insurance claim, they've only spent around £1,500 doing it up.
0:53:35 > 0:53:40Altogether, that is still £3,500 below the auction guide price.
0:53:40 > 0:53:45So, what do two local estate agents think of the flat now?
0:53:46 > 0:53:49'I think they have done it to a really, really good standard.'
0:53:49 > 0:53:52I think it's nice and fresh when you come in.
0:53:52 > 0:53:55Obviously, the new carpets, new decor, it really looks good.
0:53:55 > 0:53:58'I think they've utilised the space really well.
0:53:58 > 0:54:02'I think the lounge is a good example of that, and the fact that your master bedroom,
0:54:02 > 0:54:07'you can get a good-sized bed in there and you still have space for the wardrobes and things.'
0:54:07 > 0:54:09My first impressions of the apartment are
0:54:09 > 0:54:15it's of an excellent size, it's got a lot of period feature.
0:54:15 > 0:54:18'It is nicely specced up, it's got good-quality fittings in.
0:54:18 > 0:54:20'It's in a Grade II listed building.
0:54:20 > 0:54:24'So it still retains a lot of its character.'
0:54:24 > 0:54:27It's a lovely apartment.
0:54:27 > 0:54:32They bought the flat with the intention of renting it out, so what rental could it earn?
0:54:32 > 0:54:39This would rent out on the market at the moment at around about £495 per calendar month.
0:54:39 > 0:54:43The rental valuation on this particular property
0:54:43 > 0:54:46would look to be around £550 per calendar month.
0:54:46 > 0:54:50It seems their good fortune here continues.
0:54:50 > 0:54:54That's a very decent 12% yield.
0:54:54 > 0:54:58- OK.- That's about right. The second one.- We thought a bit more.
0:54:58 > 0:55:03- Yeah.- We thought furnished, we thought 550, 575, just under the 600.
0:55:03 > 0:55:09If they were to put this apartment back onto the market, how much could they get for it?
0:55:11 > 0:55:18Resale valuation of this flat at the moment would be around £100,000, £110,000.
0:55:18 > 0:55:24In a good market, this is potentially going to be worth 100,000 plus.
0:55:24 > 0:55:28At this moment in time, the market isn't fantastic, but I would still imagine
0:55:28 > 0:55:33it's going to carry an asking price of around about £100,000.
0:55:33 > 0:55:37So, they have potentially doubled their money in just three and a half months.
0:55:37 > 0:55:40Impressive. They must be well chuffed about that.
0:55:42 > 0:55:44- Yes. - For what we've paid, we're winning.
0:55:44 > 0:55:47- Very pleased.- We're very pleased with it, aren't we? Yeah, that's great.
0:55:49 > 0:55:55With such great rental and resell returns on their investment, are they tempted to cash in now?
0:55:55 > 0:56:03I think we'll run the market a couple of years and see what happens to the market, really. We think that
0:56:03 > 0:56:04things can only go up, really.
0:56:04 > 0:56:07I'm satisfied with the
0:56:07 > 0:56:09valuation but greedy!
0:56:09 > 0:56:12We were lucky, I guess, buying it the way we bought it,
0:56:12 > 0:56:18and lucky that we got the insurance claim, which paid for it all as well. So we've done very well.
0:56:18 > 0:56:20It is a win/win situation for us,
0:56:20 > 0:56:23especially on this time. But it doesn't always happen.
0:56:23 > 0:56:27In fact, Steven and Carol have found a tenant and are now
0:56:27 > 0:56:31renting the flat out at £550 per calendar month.
0:56:31 > 0:56:34so their luck is still very much in.
0:56:34 > 0:56:38# I should be so lucky, lucky, lucky, lucky... #
0:56:39 > 0:56:42Well, that really is it for today's properties.
0:56:42 > 0:56:47- Join us next time for more Homes Under The Hammer.- We'll see you then.- Goodbye.- Goodbye.
0:57:04 > 0:57:07Subtitles by Red Bee Media Ltd