0:00:00 > 0:00:03Hello, whether you're buying a property as a place to live in or an investment,
0:00:03 > 0:00:06you want to make sure that you've bought wisely.
0:00:06 > 0:00:07It may be difficult to find,
0:00:07 > 0:00:10but what you're looking for is value for money.
0:00:10 > 0:00:13Yeah, one way to find that is at the auctions.
0:00:39 > 0:00:42From rundown flats to magnificent mansions,
0:00:42 > 0:00:44there's always something on offer at auction.
0:00:44 > 0:00:45So here are the lots
0:00:45 > 0:00:49that made our buyers put their hands in their pockets on today's show.
0:00:51 > 0:00:55In Darlington, I take a look at the three-bedroomed end terrace
0:00:55 > 0:00:57with added extras.
0:00:57 > 0:01:00It's stuck on like a bit of a carbuncle on the property.
0:01:00 > 0:01:04This three-bedroomed property in Fulham, London,
0:01:04 > 0:01:06sets alarm bells ringing.
0:01:06 > 0:01:10Now, this would certainly put a lot of potential buyers off.
0:01:10 > 0:01:13And what's going on behind closed doors
0:01:13 > 0:01:16in this two-bedroomed terraced house in Burnley?
0:01:18 > 0:01:20Hm, try the back.
0:01:20 > 0:01:23All these properties were sold at auction,
0:01:23 > 0:01:26and we find out who bought them and what they paid for them
0:01:26 > 0:01:28when they go under the hammer.
0:01:28 > 0:01:30Sold to you, sir, your paddle number, please?
0:01:36 > 0:01:39Today in the town of Darlington,
0:01:39 > 0:01:43which owes much of its development to the influence of local Quaker families
0:01:43 > 0:01:44during the Victorian era.
0:01:46 > 0:01:48It's most famous, however,
0:01:48 > 0:01:52as the location for the world's first-ever railway.
0:01:52 > 0:01:57So, will today's property be right on track or off the rails?
0:02:00 > 0:02:03Well, I'm in a residential part of Darlington
0:02:03 > 0:02:06where the properties are a bit more affordable than other parts,
0:02:06 > 0:02:09and the property I'm here to see sounds very interesting.
0:02:09 > 0:02:11It's this building here,
0:02:11 > 0:02:14it's actually a terraced end there with this bit stuck on the end.
0:02:14 > 0:02:18Sounds a bit strange, but it was previously a shop.
0:02:18 > 0:02:19Aha, now it's making sense.
0:02:19 > 0:02:22The big question is, wonder if you could convert it back, perhaps.
0:02:22 > 0:02:25The entrance to this bit is round the corner,
0:02:25 > 0:02:28the main part of the three-bed terrace is there,
0:02:28 > 0:02:32£55,000 was the guide price, let's take a look.
0:02:34 > 0:02:37The property used to be a bakers with living accommodation attached,
0:02:37 > 0:02:42but it has since been converted into one three-bedroom house.
0:02:42 > 0:02:44From the outside, though,
0:02:44 > 0:02:49it looks like it could be big enough to develop back into two separate properties.
0:02:51 > 0:02:52So, what's on offer?
0:02:52 > 0:02:56Right, through the front door and a narrow corridor,
0:02:56 > 0:02:58it feels a bit claustrophobic,
0:02:58 > 0:03:01but on the left-hand side, oh, a bit of good and a bit of bad.
0:03:01 > 0:03:04Very nice fireplace, we like that,
0:03:04 > 0:03:06but, uh, not looking very good on the old damp,
0:03:06 > 0:03:08or whatever's going on on the wall there.
0:03:08 > 0:03:09Needs more investigating.
0:03:09 > 0:03:14Hopefully it's not going to be a tale of two houses here.
0:03:14 > 0:03:17Once the peeling wallpaper and cracks are sorted,
0:03:17 > 0:03:21then in amongst the woodchip, the lively carpets and floral wall coverings,
0:03:21 > 0:03:24there are some appealing features.
0:03:24 > 0:03:26Such as this lovely fireplace.
0:03:26 > 0:03:30A reminder of what this traditional home was once all about.
0:03:33 > 0:03:37Through to the rear living room area, and a nice sized space,
0:03:37 > 0:03:41but I am seeing some strange things going on with the floors,
0:03:41 > 0:03:44it feels as you walk around that you're sort of going up and down quite a lot,
0:03:44 > 0:03:47and some very strange stuff going on with the ceilings too,
0:03:47 > 0:03:50lots of places where it's lower than other places.
0:03:50 > 0:03:53Lots of storage, though, and a few nice original features.
0:03:53 > 0:03:56You know, strip these back, that would be quite pleasant.
0:03:56 > 0:03:58But then this layout continues to be strange,
0:03:58 > 0:04:03you come up these, well, single step, basically, into the kitchen.
0:04:03 > 0:04:07Now, it's really an unpleasant little space.
0:04:07 > 0:04:10I mean, even with some nice units in here, you've got a low ceiling.
0:04:10 > 0:04:13It's just stuck on like a bit of a carbuncle on the property.
0:04:13 > 0:04:17All in all, the layout here, certainly downstairs,
0:04:17 > 0:04:19really needs some thinking about.
0:04:23 > 0:04:27It actually feels like two properties sort of smudged together,
0:04:27 > 0:04:31without much thought about the grey area in the middle.
0:04:31 > 0:04:33Which brings me on to the stairs.
0:04:33 > 0:04:37So, up a slightly strange staircase,
0:04:37 > 0:04:39it actually gets narrower at the top there,
0:04:39 > 0:04:42and again, the floor feels a bit strange,
0:04:42 > 0:04:45but onto this two-level, kind of landing area.
0:04:45 > 0:04:48Bathroom there, it's a good size, but very tired and dated.
0:04:48 > 0:04:52Three bedrooms up here, a decent size one there,
0:04:52 > 0:04:55a very big one at the front of the property there,
0:04:55 > 0:04:58and then up to above, basically, the shop unit downstairs,
0:04:58 > 0:05:01where there is this third bedroom.
0:05:01 > 0:05:04It's a good size, not very good ceiling height,
0:05:04 > 0:05:06and again, uh, like downstairs,
0:05:06 > 0:05:09just, it's something not quite right.
0:05:09 > 0:05:11It needs to have a good think.
0:05:11 > 0:05:15But at least you do have, you know, the space to play with.
0:05:15 > 0:05:21# I'm lost in space, I'm lost in time... #
0:05:21 > 0:05:23It's space right enough,
0:05:23 > 0:05:26although it is all over the place as one property.
0:05:26 > 0:05:30But this room, teamed with the kitchen carbuncle,
0:05:30 > 0:05:33could create a nice little one-bedroomed house.
0:05:33 > 0:05:38I wonder if this property's wonky ways continue outside?
0:05:38 > 0:05:43So, out through the kitchen into this little courtyard area at the back.
0:05:43 > 0:05:45Now, you got an outside loo,
0:05:45 > 0:05:47you've got access to the alleyway at the back there
0:05:47 > 0:05:50which is good, you could park a car in here.
0:05:50 > 0:05:53The issue is going to be if you want to split this into two properties,
0:05:53 > 0:05:54cos who shares this?
0:05:54 > 0:05:58Certainly the planners will want to see somewhere for both properties
0:05:58 > 0:06:01to store things like their wheelie bins or whatever,
0:06:01 > 0:06:02and also maybe a bike rack.
0:06:02 > 0:06:04So, you're going to have to address that,
0:06:04 > 0:06:06but at least you have got the space.
0:06:10 > 0:06:12Having the space is one thing,
0:06:12 > 0:06:15but converting it into two properties
0:06:15 > 0:06:18will require jumping over some logistical hurdles.
0:06:18 > 0:06:21Now, this door comes out of the rear of what was the shop unit, but
0:06:21 > 0:06:25it actually comes out onto the side alley at the side of the property.
0:06:25 > 0:06:28Now, I think if this was to be your main entrance door
0:06:28 > 0:06:30to any potential extension, maybe a flat,
0:06:30 > 0:06:34I don't think that is necessarily going to be particularly popular with the planners,
0:06:34 > 0:06:37you're probably going to have to relocate this door to the front,
0:06:37 > 0:06:40it's more time and expense, but at the end of the day,
0:06:40 > 0:06:44I still think there's enough money in this to make it worthwhile.
0:06:44 > 0:06:49So, if it was me, I'd opt for turning it into two separate houses
0:06:49 > 0:06:52as the potential return would be well worth the cost of conversion.
0:06:52 > 0:06:54But what does a local property expert think
0:06:54 > 0:07:01of three-bedroom end of terrace that had a guide price of £55,000?
0:07:02 > 0:07:05It's a nice, big house, formerly a terraced house with shop
0:07:05 > 0:07:09which has been knocked through into one large house.
0:07:09 > 0:07:12Probably should be converted back to two separate dwellings,
0:07:12 > 0:07:17a two-bedroom terrace and, I think, a one-bedroom end terrace cottage.
0:07:17 > 0:07:21With the current layout, what could it achieve on the market today?
0:07:21 > 0:07:25Once renovated, I would see the property
0:07:25 > 0:07:27selling for around the £95,000 to £100,000.
0:07:27 > 0:07:30And if converted to two separate dwellings,
0:07:30 > 0:07:34comprising a two-bedroom terrace and a one-bedroom property?
0:07:34 > 0:07:39Once renovated, I would see the two-bedroom mid-terrace property
0:07:39 > 0:07:42selling for in the region of £75,000-£80,000.
0:07:42 > 0:07:45And the one-bedroom cottage, once renovated,
0:07:45 > 0:07:48achieving £55,000-£60,000.
0:07:48 > 0:07:51Well, there are obviously some issues to resolve here,
0:07:51 > 0:07:54especially if you're looking to do what I think you should,
0:07:54 > 0:07:56and that's convert it into two properties,
0:07:56 > 0:07:58not least relocating the second door.
0:07:58 > 0:08:01But, still, at that £55,000 guide price,
0:08:01 > 0:08:04I think there's money to be made here.
0:08:04 > 0:08:06Let's see who agreed when it went under the hammer.
0:08:06 > 0:08:10It's your end terrace, formerly house with shop attached,
0:08:10 > 0:08:13but it's now substantial three-bed home.
0:08:13 > 0:08:14£53 to start?
0:08:16 > 0:08:1751?
0:08:19 > 0:08:2050.
0:08:20 > 0:08:25It's a big house, anyone here at all want to make a bid on this one?
0:08:28 > 0:08:30We'll withdraw that.
0:08:30 > 0:08:33- 50. - You're here for 50?
0:08:33 > 0:08:36We've got the one bid at 50, is anyone else shy as well and not being in?
0:08:36 > 0:08:39We've got the one bid at £50,000.
0:08:39 > 0:08:40Anything else at 50?
0:08:40 > 0:08:4451 bid, 52, 53?
0:08:44 > 0:08:4754? 55?
0:08:47 > 0:08:51We're at £54,000, I'm going to sell, I'll take 500.
0:08:51 > 0:08:55It's at £54,000, I'm selling it once, it's your last chance.
0:08:55 > 0:08:57For the second, 54 and a half,
0:08:57 > 0:09:0155, 55 bid, I'm going to speed you up, it's at £55,000.
0:09:01 > 0:09:03I'll take a half.
0:09:03 > 0:09:06Gentleman standing £55,000, I'm going to sell it once,
0:09:06 > 0:09:09I'm selling it for the second time,
0:09:09 > 0:09:12sold for £55,000 to the gentleman standing.
0:09:12 > 0:09:14Bidding was slow to start on this one,
0:09:14 > 0:09:19but nipping in to get the ball rolling just in the nick of time
0:09:19 > 0:09:24with his successful bid of £55,000, was maths teacher, Mark.
0:09:24 > 0:09:26I met up with him and his builder mate, John,
0:09:26 > 0:09:30to find out if the sums would add up on this Darlington dwelling.
0:09:30 > 0:09:33# Drivin' in to Darlington County... #
0:09:33 > 0:09:36Mark, John, great to meet you both. Congratulations.
0:09:36 > 0:09:38Tell me why you wanted to buy this place.
0:09:38 > 0:09:41Really, I suppose it was the rental opportunity we saw in it,
0:09:41 > 0:09:45- we're hoping to try to split it into two separate properties.- Ah.
0:09:45 > 0:09:48And it's the opportunity to get two incomes from the property, yeah.
0:09:48 > 0:09:50Now, you had a look round before you bought it?
0:09:50 > 0:09:54- Yeah, we did have a look. - Did you see anything to worry about?
0:09:54 > 0:09:57Well, there's a little bit of, well, there's the crack in the front room
0:09:57 > 0:10:01but we've had a look at it, I don't think it's anything to worry about.
0:10:01 > 0:10:03Before we go very much further,
0:10:03 > 0:10:07the auction there, it seemed like you almost didn't get it?
0:10:07 > 0:10:10Yeah, I was obviously waiting to see how low he was going to go,
0:10:10 > 0:10:13and before I knew it, he'd withdrawn it from the market,
0:10:13 > 0:10:16obviously at that point there was an element of panic
0:10:16 > 0:10:19- which you probably caught on film. - Ha ha, yeah.
0:10:19 > 0:10:22I thought for a second that we'd lost the chance to buy the house,
0:10:22 > 0:10:24so when we got back in the race, it was good news.
0:10:24 > 0:10:27- A bit of a relief?- Yeah, it was. - So, tell me about you two.
0:10:27 > 0:10:31Um, been friends for a while, haven't we?
0:10:31 > 0:10:33- Yeah.- I've got a business doing building anyway,
0:10:33 > 0:10:36that's what I do for other people, for clients.
0:10:36 > 0:10:39- What do you do, Mark? - I'm a teacher, a maths teacher.
0:10:39 > 0:10:43- A maths teacher, so you're good with the numbers, then? - Yeah, well, hopefully.
0:10:43 > 0:10:45I'm not making any promises.
0:10:45 > 0:10:49How's it going to work financially between you two?
0:10:49 > 0:10:52John's obviously going to be getting a wage for the work that he's doing.
0:10:52 > 0:10:55You going to do him a bit of a deal, are you?
0:10:55 > 0:10:58- Oh, definitely, definitely, mates' rates.- Mates' rates.
0:10:58 > 0:11:02# Cos friends will be friends... #
0:11:03 > 0:11:07So, the boys are intent on the two-for-one idea,
0:11:07 > 0:11:10but there's so much to do here, what's the master plan?
0:11:10 > 0:11:13Well, first of all it'll be a full rip out,
0:11:13 > 0:11:15we'll tear everything back to brick,
0:11:15 > 0:11:18cos the majority of the walls are getting reskimmed.
0:11:18 > 0:11:19I'm try to do it as modern as we can,
0:11:19 > 0:11:23and just get everything back to a brand-new, modern look.
0:11:23 > 0:11:27And the idea is then, once it's done, rent it out
0:11:27 > 0:11:31- and build a bit of a pension? - Yeah, that's the thing,
0:11:31 > 0:11:34there isn't really any long-term plans as to what to do with it.
0:11:34 > 0:11:37I mean, obviously, there'll be the possibility to do more,
0:11:37 > 0:11:40but for now it's just the idea of getting them done up,
0:11:40 > 0:11:44getting people in there, and getting the income coming in off that.
0:11:48 > 0:11:50Stairs are a bit tight.
0:11:50 > 0:11:53What sort of budget does Mark have to do this project?
0:11:55 > 0:11:59Initially, sort of around the time of putting the bid in and stuff,
0:11:59 > 0:12:00around the time of the auction,
0:12:00 > 0:12:04I think we were looking at around £25,000,
0:12:04 > 0:12:06but, a few more costs have cropped up,
0:12:06 > 0:12:09so we're thinking if it's somewhere between 30 and top end 35,
0:12:09 > 0:12:11I'll be happy with that.
0:12:11 > 0:12:13So what is the timescale for the whole project?
0:12:13 > 0:12:15You were thinking about...
0:12:15 > 0:12:17Well, yeah, I was going to say three months,
0:12:17 > 0:12:19but if I say three to four months to Mark,
0:12:19 > 0:12:22then he's not panicking if we don't get anywhere near.
0:12:22 > 0:12:25Well, listen, congratulations, good luck with it.
0:12:25 > 0:12:28- We look forward to seeing how you get on.- Yeah.- Thank you.
0:12:28 > 0:12:33So, how is Mark going to get on with this, his first development project?
0:12:33 > 0:12:36Well, he's crossed one major hurdle, he's got a good builder lined up,
0:12:36 > 0:12:39and he's a friend, it doesn't get much better than that.
0:12:39 > 0:12:41Work to do to sort this place,
0:12:41 > 0:12:44but I'm glad they've decided to go down the two properties route.
0:12:44 > 0:12:48Still, there's the whole issue of will they get planning permission to do that?
0:12:48 > 0:12:51You can find out how it all goes later in the show.
0:12:54 > 0:12:59Welcome to Fulham in south-west London, I'm in the Sands End area,
0:12:59 > 0:13:02Now, it used to be a quiet, less well-known part of the capital.
0:13:02 > 0:13:06But the new Imperial Wharf railway station has changed all of that,
0:13:06 > 0:13:09and put this place firmly on the map.
0:13:09 > 0:13:12Millions have been pumped into this area,
0:13:12 > 0:13:16making it a much more glamorous and accessible location.
0:13:16 > 0:13:17# The glamorous
0:13:17 > 0:13:19# The glamorous, glamorous... #
0:13:21 > 0:13:24It's all looking very glitzy down by the river,
0:13:24 > 0:13:27a good choice of transport links here
0:13:27 > 0:13:31make this part of the capital much more accessible than before.
0:13:31 > 0:13:33And if trains are not for you,
0:13:33 > 0:13:36perhaps you'd prefer to travel by helicopter.
0:13:36 > 0:13:41The property I'm here to see has an SW6 postcode.
0:13:41 > 0:13:43Now, research has revealed that, on average,
0:13:43 > 0:13:47two-bedroomed properties lucky enough to have that postcode
0:13:47 > 0:13:50can achieve £690,000.
0:13:50 > 0:13:54Now, four-beds in this area can fetch over a cool million.
0:13:54 > 0:13:57The property I'm here to see is this, it's a three-bed,
0:13:57 > 0:14:00it had a guide at £525,000.
0:14:00 > 0:14:03So, that is exciting stuff.
0:14:03 > 0:14:06I'm going to go inside and see what you get for your money.
0:14:10 > 0:14:13From the outside, things are off to an impressive start.
0:14:13 > 0:14:17Lots of detailing at the front and the windows are magnificent.
0:14:17 > 0:14:19If the book gives lives up to its cover,
0:14:19 > 0:14:22I think we've got a prizeworthy contender.
0:14:24 > 0:14:28What a huge disappointment!
0:14:28 > 0:14:31How hard is it to imagine you'd get over a million quid for this.
0:14:31 > 0:14:36Look, there's holes in the walls, plaster floorboards all hanging out.
0:14:36 > 0:14:39It could be beautiful, don't get me wrong.
0:14:39 > 0:14:41This is the sitting room.
0:14:41 > 0:14:44The windows are gorgeous but there's no architrave,
0:14:44 > 0:14:47no fireplace, there's no character.
0:14:47 > 0:14:51There are breeze blocks dumped in the middle of the room.
0:14:51 > 0:14:55Somebody has obviously started some work and not finished it.
0:14:55 > 0:14:57It is a wreck.
0:14:57 > 0:14:59# I need a dollar, dollar
0:14:59 > 0:15:02# Dollar, that's what I need... #
0:15:02 > 0:15:06This property certainly needs more than a dollar spent on it.
0:15:06 > 0:15:08There's no kitchen or bathroom in place
0:15:08 > 0:15:11and the uninhabitable state of the place
0:15:11 > 0:15:15could seriously hinder your chances of getting a mortgage.
0:15:15 > 0:15:19In the current climate, there's no doubt it is easier to extend than to move,
0:15:19 > 0:15:21if you've got some unused space.
0:15:21 > 0:15:25It's worthwhile thinking about building into it to create that extra room.
0:15:25 > 0:15:27If you have the space,
0:15:27 > 0:15:31adding another room is usually the most reliable way to add value to a property
0:15:31 > 0:15:35and you could add at least another bedroom and bathroom up there
0:15:35 > 0:15:37by going into the loft.
0:15:37 > 0:15:41So that is great news for anybody wanting to add value to this house.
0:15:42 > 0:15:45Forget pots of gold at the end of the rainbow,
0:15:45 > 0:15:48you could find them up there in the loft space
0:15:48 > 0:15:49as well as down here in the basement.
0:15:49 > 0:15:52Given that a precedent has been set on the road,
0:15:52 > 0:15:55there's a good chance you'd get planning permission to extend
0:15:55 > 0:15:59and extending is where the real returns could be made.
0:15:59 > 0:16:02The outside space is decent, especially for London.
0:16:02 > 0:16:06But buyer beware, there's a legal clause that could well trip you up
0:16:06 > 0:16:09if you didn't read the small print.
0:16:09 > 0:16:14Something in here caught my eye with regards to the sale of this house.
0:16:14 > 0:16:15In the catalogue it says,
0:16:15 > 0:16:18"the seller cannot sell this property to a purchaser
0:16:18 > 0:16:23"who intends to occupy the property as his, her
0:16:23 > 0:16:25"or their only principal home."
0:16:25 > 0:16:28This would certainly put a lot of potential buyers off.
0:16:28 > 0:16:31I would advise consulting your solicitor to confirm
0:16:31 > 0:16:35exactly what the implications of this might be.
0:16:35 > 0:16:36# Believe me
0:16:36 > 0:16:40# If I see another legal paper
0:16:40 > 0:16:43# I'd scream and shout and run away... #
0:16:43 > 0:16:47If whoever purchased this place hoped to live in it,
0:16:47 > 0:16:48then this would be problematic,
0:16:48 > 0:16:50so this really is set up for a developer
0:16:50 > 0:16:56to either sell on or rent out. We invited a local property expert along for his opinion
0:16:56 > 0:17:01on this Fulham pad with an auction guide price of £525,000.
0:17:03 > 0:17:05It's obviously a very large property.
0:17:05 > 0:17:08You would be able to dig out the basement,
0:17:08 > 0:17:11you'd be able to have a loft here, rearrange some rooms.
0:17:11 > 0:17:13There's a lot of scope for a lot of redevelopment here.
0:17:13 > 0:17:16How much could someone stand to make here
0:17:16 > 0:17:19once the renovations have been done?
0:17:19 > 0:17:24If it was a three-bedroomed property, I'd expect it to rent out for £3,000 per calendar month.
0:17:24 > 0:17:26Extend and create another two bedrooms
0:17:26 > 0:17:31and that rental figure creeps up to £3,400 per calendar month.
0:17:31 > 0:17:36How much could you expect on the resale market?
0:17:36 > 0:17:39If you were to fully extend the property into the basement and loft,
0:17:39 > 0:17:41I'd expect it to fetch in the region of £1.1 million.
0:17:41 > 0:17:43This is a little gem of a house here.
0:17:43 > 0:17:46There's scope to extend, you can add value.
0:17:46 > 0:17:49I think this terraced house in Fulham is a bit of a winner for me,
0:17:49 > 0:17:53but without a kitchen and bathroom, it is unmortgageable,
0:17:53 > 0:17:55so only the cash-rich need apply.
0:17:55 > 0:17:58Let's find out who had the funds to buy this house
0:17:58 > 0:18:00as we go to the auction.
0:18:01 > 0:18:03Fulham, £600?
0:18:03 > 0:18:06Not going to get much in Fulham at six.
0:18:06 > 0:18:07Five, yeah?
0:18:07 > 0:18:10£500,000 down here. Anyone else?
0:18:10 > 0:18:11505.
0:18:11 > 0:18:13Sorry, take it with you on the end.
0:18:13 > 0:18:16510, 515,
0:18:16 > 0:18:18520, 525,
0:18:18 > 0:18:22530, 535, 540,
0:18:22 > 0:18:27545, 550, 555.
0:18:27 > 0:18:31560, 565, 570.
0:18:31 > 0:18:34Bidding for this Fulham property proved to be competitive
0:18:34 > 0:18:37with only two bidders eventually left in the running
0:18:37 > 0:18:42as the price continued to rise well above £600,000.
0:18:42 > 0:18:46631, 635,
0:18:46 > 0:18:48636.
0:18:48 > 0:18:50640.
0:18:50 > 0:18:51641.
0:18:51 > 0:18:53645.
0:18:53 > 0:18:55650. 5.
0:18:55 > 0:18:57656.
0:18:57 > 0:19:00660.
0:19:00 > 0:19:02657?
0:19:02 > 0:19:04656 with you.
0:19:04 > 0:19:06657 anywhere?
0:19:07 > 0:19:12656, first time, second time, third and last time,
0:19:12 > 0:19:14we're all done.
0:19:14 > 0:19:17Sold for 656, well done.
0:19:17 > 0:19:22# We started singing bye bye Miss American pie... #
0:19:22 > 0:19:28With that successful bid of £656,000, it was musician, Holly.
0:19:28 > 0:19:30She's originally from Georgia in America,
0:19:30 > 0:19:34but has called London home for the past two and a half years.
0:19:34 > 0:19:37I met up with her back at the property to find out her plans
0:19:37 > 0:19:41for this serious renovation project.
0:19:41 > 0:19:44It's so lovely to meet you today. Congratulations first of all.
0:19:44 > 0:19:45Thank you.
0:19:45 > 0:19:48Tell me about the auction, how was that?
0:19:48 > 0:19:50The auction was a little nerve-wracking
0:19:50 > 0:19:53because I'd never been to one before.
0:19:53 > 0:19:57Even though I've owned homes and renovated and everything.
0:19:57 > 0:19:59So it was a little bit nerve-wracking.
0:19:59 > 0:20:03You walk into this house and it is a developer's dream.
0:20:03 > 0:20:06But I know there was a condition of sale with this property.
0:20:06 > 0:20:07Can you tell me about that?
0:20:07 > 0:20:11They couldn't sell it to someone who wanted to occupy it
0:20:11 > 0:20:13as their principal residence.
0:20:13 > 0:20:16Did you get somebody to investigate that, did that put you off
0:20:16 > 0:20:19because I'm sure that would have put a lot of buyers off on the day?
0:20:19 > 0:20:22I was really coming more as a developer anyway
0:20:22 > 0:20:26but it definitely put off a lot of individuals, which in a way is good,
0:20:26 > 0:20:30because if individual families come for a house like this,
0:20:30 > 0:20:31they're willing to pay more.
0:20:31 > 0:20:36# It's a legal matter baby, a legal matter from now on. #
0:20:36 > 0:20:39Holly's original intention was to get a mortgage,
0:20:39 > 0:20:43but in its current state, she couldn't secure one, so had to get a bridging loan
0:20:43 > 0:20:46which has worked out a more expensive alternative.
0:20:46 > 0:20:49This goes to prove that research is absolutely key
0:20:49 > 0:20:54when it comes to buying at auction, as there can be costly pitfalls.
0:20:54 > 0:20:57However, Holly still has a healthy-sounding renovation budget.
0:20:57 > 0:21:00Between £150,000 and £200,000.
0:21:00 > 0:21:03When you walked into this house for the first time,
0:21:03 > 0:21:06- what first sparked your interest? - The windows.
0:21:06 > 0:21:10I looked in the auction catalogue and it had the little windows.
0:21:10 > 0:21:15They're so cute with the little moons and I just go for stuff like that.
0:21:15 > 0:21:17When I came in, I just thought, it's a real dump,
0:21:17 > 0:21:20but the great thing was it has this basement.
0:21:20 > 0:21:23It's got quite a lot of space in it.
0:21:28 > 0:21:32Holly has plans to create even more space.
0:21:32 > 0:21:36She wants to excavate the basement and she's also planning on going into the loft,
0:21:36 > 0:21:41turning this from a three-bedroom to a five-bedroom property.
0:21:41 > 0:21:43So, Holly, what is your background, what do you do?
0:21:43 > 0:21:45I'm in the music business.
0:21:45 > 0:21:47You're not a developer, then?
0:21:47 > 0:21:50No, well I am now!
0:21:50 > 0:21:56I'm a singer, songwriter, producer and artist.
0:22:01 > 0:22:02Holly is being modest.
0:22:02 > 0:22:06She's been nominated for two Grammy awards,
0:22:06 > 0:22:08both in the song of the year category.
0:22:08 > 0:22:10Breathe, recorded by Faith Hill
0:22:10 > 0:22:13on her multi-million-selling album of the same name
0:22:13 > 0:22:17is her most well-known work to date.
0:22:17 > 0:22:20Does your music career allow you enough time to develop properties -
0:22:20 > 0:22:24is this something that can work in tandem with your music career?
0:22:24 > 0:22:28I hope so! My managers hope so!
0:22:30 > 0:22:32Do they even know you've done this?
0:22:32 > 0:22:33Yeah, they do.
0:22:33 > 0:22:36I did not tell them I bought a house at auction,
0:22:36 > 0:22:39because I thought one of my managers would be like,
0:22:39 > 0:22:41"What are you doing?",
0:22:41 > 0:22:45because he's expecting me to make an album in a month.
0:22:45 > 0:22:50# Oh Mr Songwriter
0:22:51 > 0:22:54# Write me a song
0:22:54 > 0:22:57# On your trumpet... #
0:22:58 > 0:23:03'Grammy Award nominee Holly has won plaudits for her songwriting,
0:23:03 > 0:23:05'but I'm not sure she'll have time to pen a new album
0:23:05 > 0:23:08'now that she's taken on this epic project.
0:23:08 > 0:23:10'But she has high hopes for the property.'
0:23:10 > 0:23:13When you take into account what you paid for this,
0:23:13 > 0:23:17what sort of end value do you think you'll stamp on his property,
0:23:17 > 0:23:19what you think it will be worth?
0:23:19 > 0:23:22I'm hoping a minimum of £1.2 million.
0:23:22 > 0:23:27Wow, that is an incredible jump from the sixes to over a million.
0:23:27 > 0:23:29Do you think this area can take that?
0:23:29 > 0:23:32Absolutely, 100%.
0:23:32 > 0:23:36I believe there's a house just down the road that sold for £1.1 million.
0:23:36 > 0:23:39I don't think they've probably done to the level of what we would do.
0:23:39 > 0:23:43Houses in this area go for easily £1.2 million.
0:23:43 > 0:23:46Right over here is a little conservation area and lots of artists live there,
0:23:46 > 0:23:49so I don't think we'll have a problem with that.
0:23:49 > 0:23:51It's been lovely meeting you today
0:23:51 > 0:23:54- and good luck with this development, I can't wait to see it.- Thanks.
0:23:54 > 0:23:59Holly wants to create an alternative fantasyland in Fulham.
0:23:59 > 0:24:01She's got loads of great ideas for the place,
0:24:01 > 0:24:05but will £200,000 be enough for her grand designs?
0:24:05 > 0:24:09And will she achieve that £1.2 million property
0:24:09 > 0:24:11that she so dreams of?
0:24:11 > 0:24:14You can find out what happens later on in the programme.
0:24:15 > 0:24:17In Burnley, I want take things back to basics
0:24:17 > 0:24:19to reinvigorate this mid-terrace.
0:24:19 > 0:24:22What we're basically saying is,
0:24:22 > 0:24:25this is a rip it out and start again project.
0:24:25 > 0:24:29Is Holly singing from the same hymn sheet as the planners in Fulham?
0:24:29 > 0:24:35Essentially, I had to submit my entire scheme and wait.
0:24:35 > 0:24:38But first, in Darlington,
0:24:38 > 0:24:42has everything added up for maths teacher Mark and his builder friend John?
0:24:42 > 0:24:45Mark didn't want to do that, so it didn't get done.
0:24:53 > 0:24:56We return to Darlington now, where maths teacher Mark
0:24:56 > 0:25:02purchased this substantial three-bedroom end of terrace house at auction for 55,000.
0:25:02 > 0:25:05The property had previously been a bakers',
0:25:05 > 0:25:08and along with his builder mate, John,
0:25:08 > 0:25:12Mark felt it had all the ingredients to make it a recipe for success.
0:25:12 > 0:25:17Really, I suppose it was the rental opportunity that we saw in it,
0:25:17 > 0:25:21- we're hoping to try to split it into two separate properties.- Ah.
0:25:21 > 0:25:24And it's the opportunity to get two incomes from the property, yeah.
0:25:24 > 0:25:28# Why don't you do it yourself?
0:25:28 > 0:25:31# DIY, baby, do it yourself... #
0:25:33 > 0:25:35Mark had made the financial investment,
0:25:35 > 0:25:39but lacked any real practical experience.
0:25:39 > 0:25:42That was where builder pal, John, was going to earn his crust,
0:25:42 > 0:25:44and he didn't seem too worried about the task ahead.
0:25:44 > 0:25:48What I liked about it was it's not going to take too much major structural work
0:25:48 > 0:25:50to convert it into two properties.
0:25:50 > 0:25:53Six months since we first visited them,
0:25:53 > 0:25:56we're back to see if it's been full steam ahead,
0:25:56 > 0:25:59or if they've hit the buffers.
0:25:59 > 0:26:05Well, they've succeeded in turning the property into a one-bedroom duplex flat,
0:26:05 > 0:26:07and a two-bedroomed terraced house.
0:26:07 > 0:26:09Downstairs in the one-bed flat,
0:26:09 > 0:26:12the main door has been reinstated at the front,
0:26:12 > 0:26:14the kitchen has been installed in the living area,
0:26:14 > 0:26:19the old shop store room no longer has access out onto the back lane,
0:26:19 > 0:26:23and has been changed into a contemporary but simple bathroom.
0:26:23 > 0:26:29A staircase is being installed leading up from the ground floor living area
0:26:29 > 0:26:31to the very large bedroom above.
0:26:33 > 0:26:36This is the flat living area, large space,
0:26:36 > 0:26:38that's the doorway where we blocked up
0:26:38 > 0:26:41to make it into a separate dwelling from next door.
0:26:41 > 0:26:44I think it's worked out quite well in here, space wise,
0:26:44 > 0:26:46we were a bit worried about the kitchen,
0:26:46 > 0:26:49I think there's enough room for both spaces to happen.
0:26:49 > 0:26:55That's where the building regs specified we put the front door.
0:26:55 > 0:26:58Obviously, we couldn't have the door as originally positioned,
0:26:58 > 0:27:01because it was leading out onto a public highway,
0:27:01 > 0:27:05but I think, originally, this part of the property was an old shop,
0:27:05 > 0:27:09that's where the front door was, so we've made it back to the original.
0:27:12 > 0:27:15They've been good friends for a long time,
0:27:15 > 0:27:17so were there any creative differences during the project?
0:27:17 > 0:27:21Next door in the house I wanted to knock through and make it open plan,
0:27:21 > 0:27:24Mark didn't want to do that, so it didn't get done.
0:27:24 > 0:27:27But I don't think it's had much of an effect on the final product,
0:27:27 > 0:27:30- things like that.- He doesn't seem too bitter about that, does he?
0:27:30 > 0:27:31We got over that.
0:27:31 > 0:27:35# Just the two of us #
0:27:35 > 0:27:37# Building them castles in the sky
0:27:37 > 0:27:41# Just the two of us... #
0:27:41 > 0:27:46The two-bedroom house has been transformed with a new kitchen,
0:27:46 > 0:27:50whilst still retaining the same layout.
0:27:51 > 0:27:53During all this work,
0:27:53 > 0:27:58were there any unforeseen problems which may have derailed the project?
0:27:58 > 0:27:59I think it was when we found out
0:27:59 > 0:28:03we had to do all the external insulation for these walls, wasn't it?
0:28:03 > 0:28:05Yeah, I think that not only added cost,
0:28:05 > 0:28:08but it added a lot more time, more work gone into it.
0:28:08 > 0:28:10So, obviously, it slowed us up a bit.
0:28:10 > 0:28:15So, no major hitches for the boys, and all seems to have run smoothly.
0:28:15 > 0:28:19But as far as the budget is concerned, has that stayed on track?
0:28:19 > 0:28:24In terms of budget, we haven't done bad at all, really.
0:28:24 > 0:28:28We're slightly over what we'd hoped, I think we'd hope to spend,
0:28:28 > 0:28:31in total for the projects, 90, pushing up to 95.
0:28:31 > 0:28:34It's gone up to around 100 mark, but that's everything,
0:28:34 > 0:28:37solicitors' fees and everything, so we haven't done bad.
0:28:40 > 0:28:43The boys had hoped to complete the work in three to four months,
0:28:43 > 0:28:46but this has overrun to around six months.
0:28:46 > 0:28:51Mark estimates that his overall spend on the project is around £100,000.
0:28:51 > 0:28:54Which includes the auction purchase price of 55,000.
0:29:01 > 0:29:07Time to hear what to local property experts think of the renovation.
0:29:11 > 0:29:13I think the final finish is very good,
0:29:13 > 0:29:19done to a good specification, well appointed, ideal for the properties.
0:29:19 > 0:29:23I think the finish of both the house and the flat are first class.
0:29:23 > 0:29:26Very appealing, and I think will appeal to most people.
0:29:26 > 0:29:31Mark's intention has always been to rent the properties out,
0:29:31 > 0:29:35so, how much rental income could he hope to achieve
0:29:35 > 0:29:40from this newly converted one-bedroom flat, and two-bedroom house?
0:29:40 > 0:29:45I think the rental valuation for the flat is £325 per calendar month,
0:29:45 > 0:29:50and the rental valuation for the house, £425 per calendar month.
0:29:50 > 0:29:53I think the rentable value on the house
0:29:53 > 0:29:56would be in the region of 395 per calendar month,
0:29:56 > 0:29:59and I think the rental value on the apartment
0:29:59 > 0:30:01would be 350 per calendar month.
0:30:03 > 0:30:07That would offer Mark a monthly income of around £750.
0:30:07 > 0:30:12Giving him an annual yield of nine per cent, a very healthy return.
0:30:15 > 0:30:19OK, that's good, that's slightly more than I was thinking.
0:30:19 > 0:30:20I was thinking seven as a minimum,
0:30:20 > 0:30:23as long as we got seven, I'd have been happy.
0:30:23 > 0:30:25- Yeah, definitely happy with that.- Yes, pleased, yes.
0:30:25 > 0:30:29Now that the original property has been split into two,
0:30:29 > 0:30:33what would the potential resale value of each be,
0:30:33 > 0:30:36were they to put them back on the market?
0:30:37 > 0:30:41I would value the flat at £50,000,
0:30:41 > 0:30:44and I would value the house at approximately £70,000.
0:30:44 > 0:30:48The apartment, firstly, I would suggest an asking price
0:30:48 > 0:30:50of offers invited in the region of £55,000,
0:30:50 > 0:30:54and for this lovely two-bedroomed,
0:30:54 > 0:30:58I would suggest an asking price of offers invited in the region of £75,000.
0:31:05 > 0:31:09So, resale valuations of between £120,000 and £130,000 for both properties,
0:31:09 > 0:31:15that would provide Mark with a pre-tax profit of between 20 and 30,000.
0:31:15 > 0:31:18As his outlay is currently around £100,000.
0:31:20 > 0:31:22Obviously, we're not looking to sell yet,
0:31:22 > 0:31:24but even if we were to sell,
0:31:24 > 0:31:27- it's nice to think that we could make a profit on it, so...- Good.
0:31:27 > 0:31:33So, what's next for Mark and John further down the tracks?
0:31:33 > 0:31:38Well, the next thing is obviously just try to get some good tenants in there,
0:31:38 > 0:31:41get it rented out, and hopefully let it try to make some money.
0:31:41 > 0:31:45Then, after that, we'll see how it goes, hopefully get another one?
0:31:45 > 0:31:48- Yeah.- And get John in doing the work.
0:31:50 > 0:31:55Today I'm looking at a property in Burnley, which you can see behind me.
0:31:55 > 0:32:00But it's fitting, as the town grew up in the Industrial Revolution,
0:32:00 > 0:32:03that this sculpture was commissioned
0:32:03 > 0:32:06and sits on the hillsides above the town.
0:32:06 > 0:32:09As you can see, it's got a very industrial feel,
0:32:09 > 0:32:12but it represents a tree blowing in the wind.
0:32:12 > 0:32:15And the sound you can hear...
0:32:15 > 0:32:18has actually been tuned,
0:32:18 > 0:32:21so as to not to upset the local wildlife.
0:32:21 > 0:32:24And fittingly, it's called The Singing Ringing Tree.
0:32:24 > 0:32:27# Oh singing tree
0:32:27 > 0:32:29# Singing tree... #
0:32:29 > 0:32:32Down the hill and into Burnley itself,
0:32:32 > 0:32:37which at one time was the world's largest producer of cotton cloth.
0:32:37 > 0:32:41Since the closure of the mines and mills, Burnley has struggled,
0:32:41 > 0:32:43with many of the terraced workers' houses now gone.
0:32:43 > 0:32:47But those that remain are popular with renters.
0:32:47 > 0:32:51Well, just a mile outside Burnley city centre is the property I'm here to see.
0:32:51 > 0:32:55So, great for transport links and local amenities, this is it,
0:32:55 > 0:32:56it's a mid-terrace, two bedroom,
0:32:56 > 0:33:02had a fantastic guide price of just £18,000. Let's take a look inside.
0:33:08 > 0:33:10Hm, try the back.
0:33:10 > 0:33:13# I've been locked out
0:33:13 > 0:33:15# I've been locked out... #
0:33:15 > 0:33:18Well, other than not being able to get in from the front,
0:33:18 > 0:33:20this place looks all right.
0:33:22 > 0:33:27These terraces usually have a lane at the back, and this is no exception.
0:33:27 > 0:33:30This one also backs onto a factory which isn't ideal.
0:33:30 > 0:33:33The house itself looks less than appealing,
0:33:33 > 0:33:35with these security shutters.
0:33:35 > 0:33:38There are also some alarm bells ringing here,
0:33:38 > 0:33:41due to these melted pipes and guttering,
0:33:41 > 0:33:45as they give the clues to there having been a fire here at some stage.
0:33:45 > 0:33:48Time to go inside, and with no back door,
0:33:48 > 0:33:50that's not going to be difficult.
0:33:50 > 0:33:55Well, that certainly easier, but I'm not liking, eugh, what I find.
0:33:55 > 0:33:58That was obviously where the kitchen was, and there's nothing.
0:33:58 > 0:34:03But it doesn't take a rocket scientist to figure out
0:34:03 > 0:34:05this house has been the subject to fire damage,
0:34:05 > 0:34:08or, actually, smoke damage.
0:34:08 > 0:34:12I believe that there was a fire in that little courtyard area outside,
0:34:12 > 0:34:15as you can see, things like the windows here,
0:34:15 > 0:34:18completely and utterly destroyed.
0:34:18 > 0:34:23The big concern is how much damage was done to the actual fabric of the property,
0:34:23 > 0:34:26beams and things like that,
0:34:26 > 0:34:28cos that could be expensive to replace.
0:34:28 > 0:34:31I would want to get a structural engineer in here
0:34:31 > 0:34:32before I did anything else.
0:34:32 > 0:34:35It's not a bad-sized room, it just needs a little bit of work.
0:34:35 > 0:34:36# We've got work to do
0:34:36 > 0:34:40# Got so much work, yeah... #
0:34:40 > 0:34:43The house was unoccupied when the fire happened,
0:34:43 > 0:34:44so, thankfully nobody was hurt.
0:34:44 > 0:34:47But it certainly made its mark.
0:34:47 > 0:34:50Anyone taking this on will have to factor that in -
0:34:50 > 0:34:55from plumbing to wiring and kitchen windows, this house needs the lot.
0:34:55 > 0:34:59But what I do like is that as well as the kitchen and dining room,
0:34:59 > 0:35:03you also have a decent-sized living room at the front.
0:35:03 > 0:35:06Well, the further towards the front of the house you get,
0:35:06 > 0:35:09the slightly less the smoke damage becomes.
0:35:09 > 0:35:13What we're basically saying is, this is a rip it out and start again project.
0:35:13 > 0:35:16But as long as you're prepared for that, and you've budgeted for it,
0:35:16 > 0:35:17not too much of a big deal.
0:35:17 > 0:35:22Whatever you do, what I would keep is the fireplace, I quite like that.
0:35:22 > 0:35:25# When Smokey sings
0:35:25 > 0:35:27# I hear violins... #
0:35:30 > 0:35:33Heading upstairs, it's quite black from the smoke.
0:35:33 > 0:35:37In both bedrooms it appears that someone has helped themselves
0:35:37 > 0:35:40to some of the house's plumbing.
0:35:40 > 0:35:41So, that will have to be replaced.
0:35:41 > 0:35:45The good news is that both bedrooms are a good size.
0:35:45 > 0:35:49The bad news is that even though there's a bathroom suite under all this muck,
0:35:49 > 0:35:52it looks past its best to me, and needs to be replaced.
0:35:52 > 0:35:56It's going to take more than a touch of paint to make this house a home.
0:35:56 > 0:36:02But I like the layout and the size, so I think there is potential here.
0:36:02 > 0:36:06We asked the auctioneer who sold this property, guided at £18,000,
0:36:06 > 0:36:10for his opinion on whether he could find any positives
0:36:10 > 0:36:11behind the smokescreen.
0:36:11 > 0:36:14For me, one of the positives is that there are two rooms,
0:36:14 > 0:36:16two living rooms downstairs.
0:36:16 > 0:36:20So you can have that layout of a lounge and a separate dining room.
0:36:20 > 0:36:23And overall, the size is quite reasonable, it doesn't feel pokey,
0:36:23 > 0:36:27despite the fact that it's black and has been on fire,
0:36:27 > 0:36:29it's still got quite a nice feel to it.
0:36:29 > 0:36:31So that's certainly a positive.
0:36:31 > 0:36:35'I think the main negative would be the amount of work that's required.
0:36:35 > 0:36:37'But to some, that's a positive,
0:36:37 > 0:36:39'it's an opportunity to buy something'
0:36:39 > 0:36:41and add some value to it.
0:36:41 > 0:36:44What's the property worth in its current state,
0:36:44 > 0:36:47and the potential value once refurbished?
0:36:47 > 0:36:51I imagine that in the current market, and its current condition,
0:36:51 > 0:36:55the property's worth somewhere in the region of maybe £15-£18,000,
0:36:55 > 0:36:56something like that.
0:36:56 > 0:37:00And I think once done, depending on how far that renovation goes,
0:37:00 > 0:37:03you could see a value of up towards 35,000,
0:37:03 > 0:37:06maybe a little bit more, but probably not much more.
0:37:06 > 0:37:10So, some room for a profit in there to do the work and sell it on.
0:37:10 > 0:37:13What about renting it out?
0:37:13 > 0:37:15Once renovated, I think, from a rental point of view,
0:37:15 > 0:37:19we're probably looking somewhere in the region of £400 per calendar month.
0:37:19 > 0:37:23Well, it's going to take a fair old amount of effort and money
0:37:23 > 0:37:27to turn this place back into a work of art, but I think it would be worth it,
0:37:27 > 0:37:29especially from a rental point of view.
0:37:29 > 0:37:32Let's see who agreed when it went under the hammer.
0:37:32 > 0:37:34This auction lot was towards the end of the day,
0:37:34 > 0:37:36which explains those empty seats.
0:37:36 > 0:37:39I'm looking for £7,000 to start,
0:37:39 > 0:37:41£7,000, seven I've got here.
0:37:41 > 0:37:46Eight then, 8,000? Eight I've got there. Nine? Nine I've got, 10?
0:37:46 > 0:37:4810 we've got. 11? 11 we've got it. 12? Got that.
0:37:48 > 0:37:5013? 13 we've got.
0:37:50 > 0:37:5314? Yes, is that 14?
0:37:53 > 0:37:55It is, 14, I've got.
0:37:55 > 0:37:58New bidder here on my right, 15,000? 16.
0:37:58 > 0:38:02No, it's with you then, sir, at £15,000, are we all finished?
0:38:02 > 0:38:05New bidder here, sat quite close together, so that's 16,000.
0:38:05 > 0:38:08Yeah, sorry, so that 17,000 I've got here.
0:38:08 > 0:38:0918?
0:38:09 > 0:38:1118, I've got.
0:38:11 > 0:38:1219, sir?
0:38:14 > 0:38:16No, it's back with you, then. At £18,000.
0:38:16 > 0:38:21First time at £18,000, second time at £18,000, are we all done?
0:38:21 > 0:38:25Yes we are, sold to you, sir, your paddle number, please.
0:38:25 > 0:38:27609, well done.
0:38:28 > 0:38:32It was Mal who made the successful bid of £18,000.
0:38:32 > 0:38:34He bought the property with his business partner.
0:38:34 > 0:38:37Mal lives locally and used to be a chef,
0:38:37 > 0:38:41but has recently turned his hand to property development.
0:38:41 > 0:38:42I met up with him back at the house,
0:38:42 > 0:38:47to see what was cooking with his new investment.
0:38:47 > 0:38:50- Mal, good to meet you.- You too. - Congratulations.- Thank you.
0:38:50 > 0:38:52Tell me why you wanted to buy the house.
0:38:52 > 0:38:56Actually, before that, tell me why I can't get in through the front door.
0:38:56 > 0:38:58Because I'm having the door replaced,
0:38:58 > 0:39:02and it seems like a long journey to pick up a set of keys that I'm going to throw in the bin.
0:39:02 > 0:39:04So, that's the main reason.
0:39:04 > 0:39:06The house, why did you want to buy it?
0:39:06 > 0:39:09Well, basically, it's my third one that I've bought in Burnley,
0:39:09 > 0:39:13um, and, obviously, the price is attractive.
0:39:13 > 0:39:16The buy-to-let market is very good in Burnley.
0:39:16 > 0:39:21This is the kind of project I've done before, so it made sense, really.
0:39:21 > 0:39:24Mal didn't even see the property before buying it,
0:39:24 > 0:39:27as he originally went to the auction to buy the one next door.
0:39:27 > 0:39:31- You saw this for the first time after buying it?- Yes.- What did you think?
0:39:31 > 0:39:33Pretty much what I expected,
0:39:33 > 0:39:37it's very similar to a house I bought from auction a couple of years ago.
0:39:37 > 0:39:41They need everything done to them, rewiring, soundproofing, replastering.
0:39:41 > 0:39:44So long as the outside structure, and the roof was stable,
0:39:44 > 0:39:46and everything else, it should be fine.
0:39:46 > 0:39:48And is it, are they?
0:39:48 > 0:39:51Yes, I've not had a structural survey on it yet,
0:39:51 > 0:39:55but from looking at it, my builders looked at the roof
0:39:55 > 0:39:58and looked at the structure outside, before we managed to get in,
0:39:58 > 0:40:00and he was quite happy with what he saw.
0:40:00 > 0:40:05In terms of the fire damage, what's the prognosis on that?
0:40:05 > 0:40:10Well, basically, a lot of it's just facial damage.
0:40:10 > 0:40:13There's a bit of heat damage inside the back of the house.
0:40:13 > 0:40:16As far as actual fire damage, there isn't too much,
0:40:16 > 0:40:19a couple of melted plastic fire sockets.
0:40:19 > 0:40:22But nothing massively structural at all.
0:40:22 > 0:40:25This place requires a total overhaul.
0:40:25 > 0:40:26As there's been a fire,
0:40:26 > 0:40:30it's well worth getting a professional to check out the structure,
0:40:30 > 0:40:34just in case, before you get stuck into all the other work.
0:40:34 > 0:40:37- So, tell me what you're going to do to sort it out? - Everything.
0:40:37 > 0:40:38HE LAUGHS
0:40:38 > 0:40:40Basically, I've got to start with flooring.
0:40:40 > 0:40:43I've got to re-screen the floor.
0:40:43 > 0:40:47Damp proof, full rewire, plastering, central heating,
0:40:47 > 0:40:51new bathroom, new floorings, new kitchen, new windows, new doors.
0:40:51 > 0:40:53Pretty much everything.
0:40:53 > 0:40:55How much is that little lot going to cost?
0:40:55 > 0:40:57I think I can do it for about 11 or £12,000.
0:40:57 > 0:40:59Doing most of the work yourself?
0:40:59 > 0:41:02Obviously, the windows, plaster, electricians,
0:41:02 > 0:41:04they were their weight in gold.
0:41:04 > 0:41:08Um, but the actual decorating, laying the floor, laying kitchen,
0:41:08 > 0:41:09bathroom, I can do myself, yeah.
0:41:09 > 0:41:12What sort of things have you been involved with in the past?
0:41:12 > 0:41:14I was a chef for almost 20 years,
0:41:14 > 0:41:18so, um, you kind of cover every kind of thing that chefs do as far as cooking.
0:41:18 > 0:41:20But I started travelling abroad.
0:41:20 > 0:41:22Oh, great idea, where did you go to?
0:41:22 > 0:41:25I started off in Cyprus, went to work in Cyprus for a year,
0:41:25 > 0:41:28and then on to Spain, and then France, Greece, Tenerife,
0:41:28 > 0:41:32and then I ended up in Bermuda, Bermuda turned into 10 years.
0:41:32 > 0:41:35# Bermuda triangle... #
0:41:35 > 0:41:38From Bermuda to Burnley, and after the pressures of working in the kitchen,
0:41:38 > 0:41:42Mal should be able to keep a cool head throughout this project.
0:41:42 > 0:41:45But has he bitten off more than he can chew?
0:41:45 > 0:41:47So, what's the plan for it once it's all done?
0:41:47 > 0:41:49Ideally buy-to-let,
0:41:49 > 0:41:52would like to sell it if someone offered the right amount of money,
0:41:52 > 0:41:54but in this area, it's more of a buy-to-let.
0:41:54 > 0:41:57So what kind of rent do you think you might get?
0:41:57 > 0:41:59I think between 360 and 380
0:41:59 > 0:42:02is probably about the norm around here per month.
0:42:02 > 0:42:05With that potential rental yield of over 15 per cent,
0:42:05 > 0:42:08it seems he's done his sums correctly,
0:42:08 > 0:42:10and could make a healthy return.
0:42:10 > 0:42:13But only if he stays on budget, and there are no nasty surprises
0:42:13 > 0:42:16lurking behind these smoke-damaged walls.
0:42:16 > 0:42:20So, work to be done for Mal and his business partner to sort this place out.
0:42:20 > 0:42:23Do they have the right recipe for success,
0:42:23 > 0:42:25and will they manage to cook up a profit?
0:42:25 > 0:42:27You can find out later in the show.
0:42:29 > 0:42:33The clock's been ticking and work should be well under way on our properties.
0:42:33 > 0:42:36Have those piles of bricks and bags of cement gone?
0:42:36 > 0:42:39- Is the paint dry on the walls? - Let's go back and find out.
0:42:39 > 0:42:42# I need a dollar dollar
0:42:42 > 0:42:44# A dollar is what I need
0:42:44 > 0:42:46# And if I share with you my story... #
0:42:46 > 0:42:51Time to return to Fulham, south-west London, where songwriter, Holly,
0:42:51 > 0:42:57paid £656,000 at auction for this three-bedroomed terraced house.
0:42:57 > 0:43:00The outward appearance had caught her eye.
0:43:00 > 0:43:05The windows. I looked in the auction catalogue and it had the little windows
0:43:05 > 0:43:09and they're so cute with the little moons and I just go for stuff like that.
0:43:09 > 0:43:12The windows may have been the selling point for Holly,
0:43:12 > 0:43:15but inside was where the real challenges lay.
0:43:15 > 0:43:19The property had no bathroom or kitchen fitted, which made it unmortgageable.
0:43:19 > 0:43:22A fact that Holly had been unaware of.
0:43:22 > 0:43:25This meant she had to finance the project with a bridging loan,
0:43:25 > 0:43:28which was an expensive alternative.
0:43:28 > 0:43:31A legal clause also stated that whoever bought the house
0:43:31 > 0:43:34wouldn't be able to use it as their primary residence.
0:43:34 > 0:43:36We return 15 months later
0:43:36 > 0:43:42to see if Holly has hit the high notes or is she singing the blues?
0:43:42 > 0:43:47Well, surprisingly, those cute windows she loved so much are gone.
0:43:47 > 0:43:49But in their place, simple sashes.
0:43:49 > 0:43:51And inside, it's also a minimalist dream.
0:43:51 > 0:43:54Clean lines, modern, white and stunning.
0:43:54 > 0:43:57And a complete transformation on all floors.
0:43:57 > 0:44:01Where do you begin with a project on this scale?
0:44:01 > 0:44:06We started basically by coming in and just taking everything out.
0:44:06 > 0:44:09All the floors, everything.
0:44:09 > 0:44:13It was just two and a half storeys high with brick walls and that was it.
0:44:13 > 0:44:17Then we just started digging the basement.
0:44:19 > 0:44:23The property has developed from a two-storey three-bedroom house,
0:44:23 > 0:44:26to a four-storey five-bedroom home.
0:44:26 > 0:44:29Expanding down into the basement as well as up into the loft
0:44:29 > 0:44:32has allowed the creation of two new levels.
0:44:32 > 0:44:36We excavated the entire basement.
0:44:38 > 0:44:42A good nine feet in addition to what was already done.
0:44:44 > 0:44:48I just wanted to have as tall a ceiling as I could have
0:44:48 > 0:44:53and make sure I could have doors that could open all the way,
0:44:53 > 0:44:58plus the conservatory ceiling so that you could get a lot of light.
0:44:58 > 0:45:02But basically, the idea is that it's supposed to flow through
0:45:02 > 0:45:05all the way out into the garden, and just be really light and airy
0:45:05 > 0:45:10and also, you could essentially spend the whole day down here.
0:45:12 > 0:45:16So, changes on all levels, and Holly hasn't been shy
0:45:16 > 0:45:19about putting her own personal touches on the place.
0:45:19 > 0:45:23I may be wrong, but that looks to me like a shower with a view.
0:45:23 > 0:45:25Can my eyes be playing tricks?
0:45:26 > 0:45:30Yes, I have a shower with a full window.
0:45:30 > 0:45:36I wanted to make it feel like you were in the garden showering.
0:45:36 > 0:45:39I love the idea of feeling like I'm in nature
0:45:39 > 0:45:42and nature is coming in as well.
0:45:42 > 0:45:45# Steamy windows
0:45:45 > 0:45:48# Coming from the body heat. #
0:45:48 > 0:45:53When we first met Holly, the financial arrangements for buying the property
0:45:53 > 0:45:56had become slightly more complex than first anticipated.
0:45:56 > 0:46:01I had to get a bridge loan because the place was so derelict,
0:46:01 > 0:46:05there was no running water, no kitchen, no electricity,
0:46:05 > 0:46:09and basically, it was not mortgageable, which I didn't know.
0:46:09 > 0:46:13So I had to get a bridge loan, which I've been in since.
0:46:13 > 0:46:15So I've paid quite a lot of interest.
0:46:15 > 0:46:18Basically, from a budgetary standpoint,
0:46:18 > 0:46:21I just couldn't afford to take any risks.
0:46:21 > 0:46:24# I think it's amazing. #
0:46:24 > 0:46:26How has this impacted upon the budget?
0:46:27 > 0:46:30My budget grew!
0:46:30 > 0:46:33Yes, I did go over.
0:46:33 > 0:46:36I did have to go back to my funders at least two times
0:46:36 > 0:46:40and ask for an additional 60,000
0:46:40 > 0:46:43and then just recently an additional 25,000.
0:46:43 > 0:46:46So yeah, the budget more than doubled.
0:46:48 > 0:46:52So having hoped to spend between £150,000 and £200,000,
0:46:52 > 0:46:56Holly's budget is now nearer the £400,000 mark.
0:46:56 > 0:47:00The original timescale for the project was an ambitious six months or less.
0:47:00 > 0:47:02So how did that go?
0:47:02 > 0:47:06The actual work part has only taken about eight and a half months,
0:47:06 > 0:47:10which is pretty amazing, when you think we literally went
0:47:10 > 0:47:14from a brick shell to this, to four floors.
0:47:14 > 0:47:17The project has taken a lot longer.
0:47:17 > 0:47:23It sat un-worked on for six, seven, eight months,
0:47:23 > 0:47:25while I was getting the planning,
0:47:25 > 0:47:29getting the financing into place, finishing my other properties.
0:47:29 > 0:47:33So not bad.
0:47:33 > 0:47:37Despite a budget of more than double the original, and a timescale which overran,
0:47:37 > 0:47:40Holly has managed to transform this Fulham property
0:47:40 > 0:47:45into a spacious, very striking and contemporary home.
0:47:45 > 0:47:49We invited two local estate agents to give us their opinions
0:47:49 > 0:47:52now that the project is completed.
0:47:52 > 0:47:55'My first impression of this place is absolutely fantastic.
0:47:55 > 0:47:57'I think it's a stunning home.
0:47:57 > 0:48:00'I think it has an amazing style, excellent flow of space.
0:48:00 > 0:48:02'The integration into the garden'
0:48:02 > 0:48:05is absolutely first-rate. The size, the light, the high ceilings,
0:48:05 > 0:48:08the finish. I can't fault it at all.
0:48:08 > 0:48:10My first impressions are very positive.
0:48:10 > 0:48:16It's been beautifully refurbished and has a bit of a wow factor.
0:48:17 > 0:48:21Holly paid £656,000 at auction for the property
0:48:21 > 0:48:25and her renovation budget has stretched to over £400,000,
0:48:25 > 0:48:29making a total outlay of about £1.1 million.
0:48:29 > 0:48:32So how much could it now be worth if sold on?
0:48:36 > 0:48:40I think at the moment, it would probably set a record
0:48:40 > 0:48:43for this road and these neighbouring roads.
0:48:43 > 0:48:49The current record's about £1.05, that's a million and 50.
0:48:49 > 0:48:54I would think that we could get £1.1 million to £1.2 million
0:48:54 > 0:48:56for a house like this right now.
0:48:56 > 0:49:00If I was looking to market the property, I would bring it on at £1.2 million.
0:49:00 > 0:49:04If she achieves the high end of those values,
0:49:04 > 0:49:07that could give Holly a pre-tax profit of around £100,000.
0:49:07 > 0:49:10If the property were to be rented out,
0:49:10 > 0:49:13what could the monthly rental income be?
0:49:13 > 0:49:19This property would rent for between £4,500 to £5,000 per calendar month.
0:49:19 > 0:49:24If this was to go on the rental market, I would expect it to achieve £3,600 per calendar month.
0:49:27 > 0:49:30Holly feels these values are a bit on the low side
0:49:30 > 0:49:34and believes the property could fetch up to £1.5 million.
0:49:34 > 0:49:37But the real value of this project
0:49:37 > 0:49:39is the incredibly stylish home she's created.
0:49:39 > 0:49:42Now it's complete, how does she view the project?
0:49:44 > 0:49:52I have been through hell with this project from a financial standpoint.
0:49:52 > 0:49:55But it's been incredibly rewarding.
0:49:55 > 0:50:01I have had a lot of fun doing the design, choosing tiles,
0:50:01 > 0:50:04designing the kitchen, designing the windows.
0:50:04 > 0:50:07So that part's been absolutely fun.
0:50:14 > 0:50:17Back now to Burnley in Lancashire, where Mal and his business partner
0:50:17 > 0:50:22bought this two-bedroom terraced house for £18,000 at auction.
0:50:22 > 0:50:25This was Mal's third investment property.
0:50:25 > 0:50:31The house needed total refurbishment as it had suffered significant fire damage.
0:50:31 > 0:50:35Mal, a former chef, was hoping to be hands-on with the development.
0:50:35 > 0:50:40But would this be a case of him jumping straight from the frying pan into the fire?
0:50:40 > 0:50:43Do you have much experience of that kind of thing?
0:50:43 > 0:50:45Not masses. Only the previous two houses.
0:50:45 > 0:50:48But I learnt a lot off my builder the first time
0:50:48 > 0:50:50and my builder will be doing bits and pieces as well.
0:50:50 > 0:50:53But I will try and lower the cost by doing as much as I can.
0:50:55 > 0:50:57We're back just under four months later to see
0:50:57 > 0:51:01if Mal has done enough for us to award him a Michelin star.
0:51:07 > 0:51:12For starters, the front of the house has been freshened up with a lick of paint.
0:51:12 > 0:51:15Inside, the living room has been stripped back,
0:51:15 > 0:51:17replastered and decorated.
0:51:19 > 0:51:22It's a bit of a shame to see that old fireplace go,
0:51:22 > 0:51:25but the place really has been brought back to life.
0:51:27 > 0:51:30Laminate flooring has been laid right through the ground floor
0:51:30 > 0:51:33to the rear reception room and kitchen.
0:51:34 > 0:51:38Here we have the kitchen. It's almost finished. It's a work in progress.
0:51:38 > 0:51:41Basically, we've done everything we need to do.
0:51:41 > 0:51:45We've just got the units to finish off. All the plumbing's in.
0:51:45 > 0:51:48We've had to put flooring all the way through. New flooring. New concrete floor.
0:51:48 > 0:51:54Basically, there was no floor at all before so we've had a new concrete floor and new laminate on top of it.
0:51:54 > 0:51:58This is the window that had the most fire damage.
0:51:58 > 0:52:02New woodwork, new plastering, and completely finished, except for the windowsill.
0:52:02 > 0:52:04Then it just needs a bit of paint.
0:52:04 > 0:52:06Upstairs now for the next course.
0:52:11 > 0:52:14The bedrooms have had the same treatment as the rooms downstairs.
0:52:14 > 0:52:18Stripped, replastered and decorated.
0:52:18 > 0:52:21Also, some new floorboards have been laid.
0:52:24 > 0:52:28The windows in the back bedroom needed replacing too,
0:52:28 > 0:52:31because of the fire damage at the back.
0:52:32 > 0:52:34And as for the bathroom...
0:52:35 > 0:52:37We're in the bathroom. Completely new ceilings.
0:52:37 > 0:52:43It was all fire damaged in here. This room was quite damaged so we had to have new ceilings.
0:52:43 > 0:52:45Replastered throughout, rewired.
0:52:45 > 0:52:48You can see the new windows down the back of the building.
0:52:48 > 0:52:53Completely new suite and also a new boiler for a complete system throughout the building.
0:52:53 > 0:52:57New flooring. Still a work in progress, but we're getting there.
0:53:01 > 0:53:03Mal and his business partner were planning to do
0:53:03 > 0:53:06as much of the work as they could to keep the budget down.
0:53:06 > 0:53:09So how was it split between themselves and the tradesmen?
0:53:11 > 0:53:13I've had builders in. I've had plasterers in.
0:53:13 > 0:53:18They've done the plastering. I've also had a plumber in who's done the central heating.
0:53:18 > 0:53:20They've also done a bit of the concrete floor.
0:53:20 > 0:53:25We ourselves have done most of the decorating and laying the floor.
0:53:25 > 0:53:27We've put in the bathroom suite.
0:53:27 > 0:53:31It's an ongoing process but we're putting in the kitchen as well.
0:53:32 > 0:53:37Mal had originally planned to complete the renovation in around 10 weeks.
0:53:37 > 0:53:40Have they managed to keep to that deadline?
0:53:40 > 0:53:42We had problems getting electricity.
0:53:42 > 0:53:46It took about six or seven weeks to get electricity, which slowed us down.
0:53:46 > 0:53:49I was hoping to have it done by the 10-week mark,
0:53:49 > 0:53:52but unfortunately now it's been 12 or 13 weeks.
0:53:52 > 0:53:56Unfortunately, Mal has gone slightly over on his timescale.
0:53:56 > 0:53:58How has he done with his budget?
0:54:00 > 0:54:02Budget-wise, I thought around £10,000.
0:54:02 > 0:54:04I was hoping for around the £10,000 mark.
0:54:04 > 0:54:06We have gone over, but not drastically.
0:54:06 > 0:54:09I think we'll finish on around £11,000,
0:54:09 > 0:54:12which is relatively what we'd expect.
0:54:14 > 0:54:17The property cost £18,000 at auction.
0:54:17 > 0:54:20Added to the renovation costs of £11,000,
0:54:20 > 0:54:23that means a total outlay of £29,000.
0:54:23 > 0:54:27What do two local property experts think of Mal's refurbishment?
0:54:30 > 0:54:32First impressions are good.
0:54:32 > 0:54:35He's obviously done all the major work that was required
0:54:35 > 0:54:37because of the fire damage.
0:54:37 > 0:54:41All the replastering looks good, he's obviously in the process
0:54:41 > 0:54:44of putting in a kitchen and the bathroom needs finishing,
0:54:44 > 0:54:47but you can see that the finished product will look good.
0:54:47 > 0:54:50It's your standard mid-terraced property.
0:54:50 > 0:54:53It's had all the essentials done to a decent standard
0:54:53 > 0:54:56in terms of central heating and double glazing.
0:54:56 > 0:54:59It's clean and tidy and I can imagine someone moving straight in.
0:54:59 > 0:55:04What valuation would they give if it were to be sold?
0:55:04 > 0:55:08From a resale point of view, the market's tough everywhere.
0:55:08 > 0:55:11It's tough in Burnley at the minute, but again it might stand out
0:55:11 > 0:55:13because of the work that's been done.
0:55:13 > 0:55:17We're probably looking somewhere in the region of £30,000.
0:55:17 > 0:55:19Looking at the resale value,
0:55:19 > 0:55:23I would think you'd be looking somewhere in the region of £37,000.
0:55:23 > 0:55:26OK. I thought we might be able to get £40,000 to £45,000.
0:55:26 > 0:55:28I'm going to rent it anyway.
0:55:30 > 0:55:35According to the experts, that would give Mal a pre-tax profit of between £1,000 and £8,000,
0:55:35 > 0:55:38although as he says, he's going to rent it out.
0:55:38 > 0:55:41So what could that earn him?
0:55:41 > 0:55:44From a rental point of view, given the current market,
0:55:44 > 0:55:46there's a strong demand for rental property,
0:55:46 > 0:55:49although there's a lot of rental property in the area.
0:55:49 > 0:55:53So I think we're probably looking somewhere in the region of £375 per calendar month.
0:55:53 > 0:55:58In a rental market, you'd be looking at somewhere in the region of £300 per calendar month.
0:55:58 > 0:56:01That's pretty much what I thought it was going to be.
0:56:01 > 0:56:04I was expecting around £350, so £375 is great.
0:56:05 > 0:56:08It's obviously worth renting out, then.
0:56:08 > 0:56:13That would give him a whopping yield of between 12% and 15.5%.
0:56:13 > 0:56:17This being the third property Mal has developed, what's his verdict on this one?
0:56:18 > 0:56:21I do think it's been a success. It's taken a little longer than I thought
0:56:21 > 0:56:24and there have been many frustrations on the way,
0:56:24 > 0:56:26but it doesn't put me off doing these.
0:56:26 > 0:56:30There's only about three weeks to go and then I'll move on to the next project.
0:56:32 > 0:56:36With his chef's career now on the back burner,
0:56:36 > 0:56:40what does Mal find is most satisfying now that he's a property developer?
0:56:41 > 0:56:44I generally enjoy just the sense of achievement once they're finished.
0:56:44 > 0:56:47Taking something that's burnt out,
0:56:47 > 0:56:52from a shell to a finished end result is just amazing.
0:56:55 > 0:56:58Join us next time when we meet more brave auction buyers,
0:56:58 > 0:57:01either trying to make a killing or maybe just finding somewhere to live.
0:57:01 > 0:57:04- Looking forward to seeing you then. - Goodbye.- Goodbye.
0:57:10 > 0:57:12Subtitles by Red Bee Media Ltd