0:00:02 > 0:00:05- Hello and welcome. - Auctions are a fascinating place
0:00:05 > 0:00:09to buy and sell property. Perhaps that's why they've become so popular.
0:00:09 > 0:00:13Thousands of lots are offered for sale every year under the hammer.
0:00:38 > 0:00:42People who buy at auction know all the tricks of the trade.
0:00:42 > 0:00:46One way to make sure you're not inheriting a whole load of problems
0:00:46 > 0:00:49is to read the legal pack for the property you want to buy.
0:00:49 > 0:00:51Yes, it's better to be safe than sorry.
0:00:51 > 0:00:55So here are the properties that inspired the buyers on today's show.
0:00:56 > 0:01:01'Whoever buys this terrace in Kent will need to spend a pretty penny doing it up.
0:01:01 > 0:01:06'I, on the other hand, only need to spend one.' Where's the loo?
0:01:06 > 0:01:11'This broken-down bungalow in Dorset may look a little shabby, but...'
0:01:11 > 0:01:14The key to this lot, it's not the building itself,
0:01:14 > 0:01:16it's what lies out there.
0:01:16 > 0:01:20'And this property in Leeds may not seem so special,
0:01:20 > 0:01:24'but first impressions are not always accurate.'
0:01:24 > 0:01:26This is no ordinary terraced house.
0:01:28 > 0:01:32'All these properties have been sold at auction. We'll find out who bought them
0:01:32 > 0:01:35'and what they paid for them when they went under the hammer.'
0:01:39 > 0:01:44I'm in Dover, one of the busiest gateways into Britain.
0:01:44 > 0:01:48'But it's also a popular tourist destination in its own right.
0:01:48 > 0:01:53'There's a fantastic castle. But, of course, the most famous thing, the white cliffs.
0:01:55 > 0:02:01# There'll be bluebirds over
0:02:01 > 0:02:05# The white cliffs of Dover
0:02:05 > 0:02:10'It's hard to think of a more iconic British landmark than these cliffs.
0:02:10 > 0:02:15'For the millions of people who arrive at and leave from Dover's busy port every year,
0:02:15 > 0:02:18'they're the first and last of the UK that they see.
0:02:18 > 0:02:23'Not far from those famous white cliffs themselves is the property I'm here to see.'
0:02:25 > 0:02:29Two-bedroom mid-terrace. Doesn't look too brilliant from the outside,
0:02:29 > 0:02:35but it had a fairly low guide price, £50,000 to £55,000. Let's take a look.
0:02:36 > 0:02:40'The property might not look up to much, but the view from it is pretty good.
0:02:40 > 0:02:44'You can even see Dover Castle from the end of the road.'
0:02:46 > 0:02:50What a very strange layout indeed.
0:02:50 > 0:02:53Down the corridor from the front into the living room area,
0:02:53 > 0:02:58but there's this thin bit of wood on the wall to create this corridor.
0:02:58 > 0:03:02It doesn't work. Why have you got that there? Get rid of that straight away.
0:03:02 > 0:03:08But that, really, is just the tip of a fairly nasty iceberg.
0:03:08 > 0:03:12The place, as you can see, is in a right old state. The big question is,
0:03:12 > 0:03:15is it cosmetic or something more serious?
0:03:18 > 0:03:22'There's another reception room on the ground floor which is in equally poor condition.'
0:03:22 > 0:03:25# Rescue me
0:03:25 > 0:03:28# Take me in your arms, rescue me
0:03:28 > 0:03:31'This house definitely needs rescuing.
0:03:31 > 0:03:36'On the up side, though, it does have a lovely bay window with a view of a slightly overgrown garden.'
0:03:36 > 0:03:39# And your love, too, come on and rescue me
0:03:41 > 0:03:44Hm. Well, up here, sadly, it doesn't get any better.
0:03:44 > 0:03:47In some ways, it actually gets even worse.
0:03:47 > 0:03:51Let's be honest, we're talking about a total refurbishment here.
0:03:51 > 0:03:53Gut the place out, sort out the floorboards,
0:03:53 > 0:03:58sort out the ceilings, strip everything back and start again, get a nice, clean shell to work with.
0:03:58 > 0:04:04The good news, as far as I can see, is that it is just primarily cosmetic.
0:04:04 > 0:04:07Big cosmetic, but cosmetic.
0:04:10 > 0:04:14Hang on a minute. Where's the loo?
0:04:15 > 0:04:18'Come to think of it, I haven't found the kitchen yet, either.
0:04:18 > 0:04:21'This house is spread over three floors,
0:04:21 > 0:04:26'so the only place the kitchen and bathroom could be is in the basement.'
0:04:28 > 0:04:30A-ha! Here it is.
0:04:30 > 0:04:33Down on the lower-ground floor,
0:04:33 > 0:04:39you find what is pretty much an excuse for a bathroom.
0:04:39 > 0:04:43This is the only place where there is a bathroom and a loo.
0:04:43 > 0:04:45This, presumably, at some point, was the kitchen,
0:04:45 > 0:04:49although you do wonder, don't you?
0:04:49 > 0:04:53It just backs up what I said earlier. It just needs a complete rehash.
0:04:53 > 0:04:57Biggest concern is, what do you do with the bathroom? It doesn't work down here.
0:04:57 > 0:05:01Maybe you have to sacrifice one of the rooms on the ground floor and put it there.
0:05:01 > 0:05:04I can't think of any other way of doing it.
0:05:04 > 0:05:07Ooh.
0:05:07 > 0:05:09# There's no other way
0:05:09 > 0:05:11# There's no other way
0:05:11 > 0:05:17'Having the loo and bathroom next door to the kitchen is not the most appealing of set-ups,
0:05:17 > 0:05:22'but what I do like about it is that it opens out onto the back garden,
0:05:22 > 0:05:26'which would be ideal if this is turned into a family home.
0:05:26 > 0:05:29'Time to get a local estate agent to give us the lowdown.'
0:05:30 > 0:05:33I think the property needs a lot of work,
0:05:33 > 0:05:36but it's got the basis to be a good-size family property.
0:05:36 > 0:05:40The purchaser of this property is going to need to look at the damp issues
0:05:40 > 0:05:43and then probably look at wiring, things like that.
0:05:43 > 0:05:46'Although the work required does seem mainly cosmetic,
0:05:46 > 0:05:50'how much would it cost to bring it up to modern standards?'
0:05:50 > 0:05:56I would say that the owner would need to spend £30,000 to £40,000 to get it up to a good state of repair.
0:05:56 > 0:05:59'Bearing in mind the guide price was £50,000 to £55,000,
0:05:59 > 0:06:02'how much could it be worth once done up?'
0:06:04 > 0:06:10I would say that the value for this property would be in the order of £100,000 to £110,000.
0:06:10 > 0:06:17'Of course, a family house like this close to the city centre could be an ideal rental unit.'
0:06:17 > 0:06:22The rental value, when renovated, would be in the order of £500 per calendar month.
0:06:24 > 0:06:26Well, obviously work to be done on this one,
0:06:26 > 0:06:31but I think you could really add value to this property by some sympathetic renovations
0:06:31 > 0:06:35and end up with a pretty good rental unit.
0:06:35 > 0:06:38Let's find out who went for it when it went to the auction.
0:06:40 > 0:06:43Terraced house with bay front on the ground floor.
0:06:43 > 0:06:47Good little one to buy now, do up, let or sell.
0:06:47 > 0:06:51Start me at 50,000. Can't be worth any less than £50,000, surely?
0:06:51 > 0:06:52Start me at 45, then.
0:06:52 > 0:06:5545 to get me on the way for a mid-terraced house. 45 I've got.
0:06:55 > 0:06:58Now 48. At 48.
0:06:58 > 0:07:0349 I've got. £50,000 I've got. The gentleman standing on my right.
0:07:03 > 0:07:0551 I'm looking for. 51 I've got at the front.
0:07:05 > 0:07:08And 2. 52. And 3.
0:07:08 > 0:07:10And 4. 54. And 5.
0:07:10 > 0:07:13And 6. 56 I've got.
0:07:13 > 0:07:18And 8. 58. £58,000 I've got sitting down at the front in the blue jumper.
0:07:18 > 0:07:21Anybody want to bid 60? Lots of blank faces.
0:07:21 > 0:07:23At £58,000 I've got, then.
0:07:23 > 0:07:26At the front on my right. For the first time.
0:07:26 > 0:07:30- For the second time at £58,000. All done? - HAMMER BANGS
0:07:30 > 0:07:33You've got one for 58,000. Well done.
0:07:33 > 0:07:36'The new owner is security officer Andreas,
0:07:36 > 0:07:39'who's originally from South Africa.
0:07:39 > 0:07:44'He's no stranger to property developing, or to Homes Under The Hammer, for that matter.
0:07:44 > 0:07:48'We've seen his handiwork before, when he bought another place in Dover,
0:07:48 > 0:07:50'so he's obviously come back for more.'
0:07:50 > 0:07:53- Andreas, very good to meet you. - Good to meet you, too, Martin.
0:07:53 > 0:07:57- You've met the whole team now! You met Lucy last time!- Yes.
0:07:57 > 0:08:01So, we saw you a little while ago with a property in Dover. How did that go?
0:08:01 > 0:08:05That went quite well. We almost made a double turnover.
0:08:05 > 0:08:11- Oh! - Yeah, so that has helped us to move forward and eventually purchase this
0:08:11 > 0:08:14- and we have, at the moment, purchased four properties now.- Wow.
0:08:14 > 0:08:19This is the fourth property that's on our list and we're moving forward quite quickly.
0:08:19 > 0:08:22So why did you want to buy this one?
0:08:22 > 0:08:26To be honest, this was not our main focus.
0:08:26 > 0:08:32We had our eyes on other properties, but the prices went a bit high,
0:08:32 > 0:08:37so, after all, I think we are quite happy with the property in terms of price and the location.
0:08:37 > 0:08:41- It's got a bit of Victorian features in the property.- Right.
0:08:41 > 0:08:43But we have it now, so we just have to deal with it.
0:08:43 > 0:08:46'Good to see he's remaining positive,
0:08:46 > 0:08:49'because he's got his work cut out here.
0:08:49 > 0:08:52'Andreas is now a man with responsibilities.
0:08:52 > 0:08:55'He and his wife Sophie now have a baby boy.'
0:08:58 > 0:09:02I have a five-month-old son. His name is Damario.
0:09:02 > 0:09:05So I'm trying to teach him already how to hold a brush
0:09:05 > 0:09:09and do a bit of painting. HE LAUGHS
0:09:09 > 0:09:14- And that's motivated me to go for properties even more.- Really?- Yeah.
0:09:14 > 0:09:18To create a better future for my family as a whole.
0:09:18 > 0:09:24'Andreas is really going to have to focus to bring this place up to scratch.
0:09:24 > 0:09:27'He's allocated a budget of £10,000 to do the renovation
0:09:27 > 0:09:30'and just three and a half months to get everything done.'
0:09:32 > 0:09:37One of the biggest things is the layout and the fact you've got the loo and the bathroom downstairs.
0:09:37 > 0:09:44- What are you going to do about that? - The location of the bathroom, it's not supposed to be there,
0:09:44 > 0:09:47so we're going to bring it up to the ground level,
0:09:47 > 0:09:49- towards the front of the house. - Oh, OK.
0:09:49 > 0:09:52Because that's where the sewer pipe is,
0:09:52 > 0:09:55so it makes it easier for us to install a toilet there, as well.
0:09:55 > 0:09:57And in terms of the location of the kitchen?
0:09:57 > 0:10:00The kitchen will remain in the basement,
0:10:00 > 0:10:05a kind of kitchen/dining area.
0:10:05 > 0:10:09'I think moving the bathroom away from the kitchen is essential.
0:10:09 > 0:10:12'Andreas has done his homework about the location of the water supply,
0:10:12 > 0:10:17'but it's a lot to undertake with a budget of just £10,000.'
0:10:17 > 0:10:22The first thing that we need to focus on is the roof, cos there's a bit of leakage
0:10:22 > 0:10:25and, as you can see, around the house, there's a bit of damp.
0:10:25 > 0:10:29Then, from there, new ceilings, plastering.
0:10:29 > 0:10:36It's like building a house from scratch, basically. So new kitchen, new bathroom, the whole lot.
0:10:36 > 0:10:39So what's the idea? Are you going to sell it or rent it out?
0:10:39 > 0:10:46Our main focus is to do it up quickly and put it back on the market and see if it sells.
0:10:46 > 0:10:53If it doesn't sell, I'll just have to remortgage and keep it as a future investment for my small son,
0:10:53 > 0:10:56towards his future investment.
0:10:57 > 0:11:02'And Andreas isn't going to stop here. He's got big plans for his property-developing future.'
0:11:03 > 0:11:06My intention is to retire when I'm 40.
0:11:06 > 0:11:10- Wow!- So I've got another ten years
0:11:10 > 0:11:16to get a minimum of ten houses to fully manage. Or even more.
0:11:16 > 0:11:20So my intention is to just keep building on my portfolio.
0:11:20 > 0:11:24Congratulations. I think we'll be seeing you again on the show.
0:11:24 > 0:11:28Yes, when I'm a multi-millionaire.
0:11:28 > 0:11:31- Good luck with that.- Thank you. - Nice to see you.- Nice to meet you.
0:11:33 > 0:11:40So, Andreas expanding his property portfolio with the added impetus of doing it for his young family.
0:11:40 > 0:11:44Still, a lot of work to do for that £10,000 budget.
0:11:44 > 0:11:48How's he going to get on? You can find out later in the show?
0:11:54 > 0:11:59'This is Corfe Mullen, a village just 20 minutes from the Dorset coast.
0:11:59 > 0:12:02'With excellent road links and spectacular countryside,
0:12:02 > 0:12:07'it has a much sought-after combination of practicality and beauty.'
0:12:08 > 0:12:12The rural nature of this part of the village just makes it a highly desirable place to live
0:12:12 > 0:12:15and that's why I'm really excited about today's lot.
0:12:15 > 0:12:20It's a two-bedroom bungalow, it's set in 1.5 acres of land,
0:12:20 > 0:12:23with a guide price of £295,000.
0:12:23 > 0:12:28Here it is! Not exactly a bungalow of outstanding natural beauty.
0:12:28 > 0:12:31I'm going to have a look around.
0:12:32 > 0:12:38'That lovely stroll up the long driveway had me anticipating a rustic country retreat.
0:12:38 > 0:12:41'Sadly, though, even on a crisp, sunny winter's morning,
0:12:41 > 0:12:45'this bungalow fails to make a promising first impression.'
0:12:49 > 0:12:52So not a stunner inside, either.
0:12:52 > 0:12:56It's just a straightforward layout here. All the rooms just lead off the hallway,
0:12:56 > 0:13:00you've got the kitchen to my right, bedrooms one and two on my left,
0:13:00 > 0:13:03grubby old bathroom at the back there.
0:13:03 > 0:13:05And through here, we're into the living room.
0:13:05 > 0:13:10I was really hoping for some nice, big French doors out onto the garden.
0:13:10 > 0:13:17At least you've got double-glazing. The rest of the windows are old and will all need replacing.
0:13:17 > 0:13:21Got a storage heater here. That tells me there's no central heating, another big expense.
0:13:21 > 0:13:25It seems to me, the key to this lot is not the building itself,
0:13:25 > 0:13:28it's what lies out there.
0:13:28 > 0:13:32# Into the great wide open
0:13:34 > 0:13:38# Under them skies of blue
0:13:38 > 0:13:41'With its drab, grey, pebbledash exterior,
0:13:41 > 0:13:46'this bungalow sits apart from the lush green countryside on its doorstep,
0:13:46 > 0:13:49'rather than reflecting its glorious surroundings.'
0:13:55 > 0:13:59This site deserves something more than this bland old bungalow.
0:13:59 > 0:14:03Something contemporary and in keeping with such a desirable location.
0:14:03 > 0:14:07Just look at those views! I love it out here!
0:14:07 > 0:14:11You know, it's become very fashionable to demolish old single-storey houses like this
0:14:11 > 0:14:16and build bigger and better properties on what is often a large footprint.
0:14:16 > 0:14:20And these days, they're just becoming harder and harder to find.
0:14:20 > 0:14:24Do you know what? I've made up my mind. Knock it down.
0:14:24 > 0:14:28# You just gonna knock me down You just gonna knock me down
0:14:28 > 0:14:32# You just gonna knock me down You just gonna knock me down
0:14:32 > 0:14:38'But beware. Before you set the wrecking ball rolling to clear the 1.5 acres of land,
0:14:38 > 0:14:43'remember, this is a green-belt area, so there will be planning restrictions.
0:14:43 > 0:14:47'You certainly won't be able to construct anything with a larger footprint
0:14:47 > 0:14:50'than the current bungalow and its outbuildings.
0:14:50 > 0:14:55'If you were to renovate the existing property, you'd certainly need replacement windows
0:14:55 > 0:14:59'and a new central-heating system. The bathroom suite may be salvageable
0:14:59 > 0:15:02'with new fixtures and fittings,
0:15:02 > 0:15:07'but the bedrooms will need to be fully refurbished and the kitchen should be ripped out and replaced.
0:15:09 > 0:15:13'The guide price for this property was £295,000.
0:15:13 > 0:15:17'I asked a local property expert for her opinion
0:15:17 > 0:15:20'on whether it should be knocked down or done up.'
0:15:20 > 0:15:24We feel that the best option would be to redevelop the site.
0:15:24 > 0:15:28There is potential to refurbish the property and perhaps extend a little bit.
0:15:28 > 0:15:31One thinks that it might be quite costly
0:15:31 > 0:15:35and it would be more cost-effective to flatten the site and start again.
0:15:39 > 0:15:44'If the bungalow was renovated, with a third bedroom added where the garage is now,
0:15:44 > 0:15:47'what could its value be?'
0:15:47 > 0:15:51If the existing bungalow was renovated, it would probably be worth
0:15:51 > 0:15:54in the region of £400,000 to £450,000.
0:15:54 > 0:15:58'And if a new three-bedroom bungalow was built?'
0:15:58 > 0:16:02Depending on the style of the bungalow and its attractiveness,
0:16:02 > 0:16:09we feel that a replacement bungalow could probably attract a price in the region of £500,000 to £550,000.
0:16:13 > 0:16:17The attraction and value of this lot lies in the land itself.
0:16:17 > 0:16:21The bungalow's serviceable, but it's a little bit sad
0:16:21 > 0:16:23and I really feel there is better use for the site.
0:16:23 > 0:16:27But overdevelopment is not an option here, and nor should it be.
0:16:27 > 0:16:30This location deserves a home to do it justice
0:16:30 > 0:16:32and make the most of this beautiful countryside.
0:16:32 > 0:16:36Find out who fancied this lot at the auction.
0:16:37 > 0:16:41Our guide here is £295,000.
0:16:41 > 0:16:44Would someone like to put me straight in at the guide of 295?
0:16:44 > 0:16:48295, thank you. Straight in at the guide.
0:16:48 > 0:16:51At 295. At 295. 300, thank you.
0:16:51 > 0:16:54At 300. 300. And 5.
0:16:54 > 0:16:56305. 310.
0:16:56 > 0:16:59310. 315. 315.
0:16:59 > 0:17:02Is that time already? At 315.
0:17:02 > 0:17:04315. At 315.
0:17:04 > 0:17:09- 320. Are you looking at the attractive girl in green?- Yes.
0:17:09 > 0:17:13325. So am I now. 330, fresh bidding. 330.
0:17:13 > 0:17:16335. 335.
0:17:16 > 0:17:19340, thank you, sir. 340.
0:17:19 > 0:17:22345. 345.
0:17:22 > 0:17:26350. I'm in your hands. 355.
0:17:26 > 0:17:32355. All done at £355,000?
0:17:32 > 0:17:35HAMMER BANGS
0:17:35 > 0:17:40'Part-time teacher Sarah secured it with her bid of £355,000.'
0:17:42 > 0:17:46# Strolling along country roads with my baby
0:17:46 > 0:17:50'She and husband Gary recently built a holiday home in Spain,
0:17:50 > 0:17:53'but they've now turned their attention to this bungalow,
0:17:53 > 0:17:56'which they hope to turn into their dream family home.'
0:17:56 > 0:18:00# Walking hand in hand with the one I love
0:18:02 > 0:18:06- Gary and Sarah, congratulations! - Thank you.
0:18:06 > 0:18:08How did you find this auction property?
0:18:08 > 0:18:10Er, I think it was almost by accident,
0:18:10 > 0:18:14that we just happened to be... I think I was probably on the web
0:18:14 > 0:18:16and saw these particulars
0:18:16 > 0:18:19and so we thought that was of interest.
0:18:19 > 0:18:21Unfortunately, I couldn't do it on the day,
0:18:21 > 0:18:26- so Sarah was in charge.- Sent me along! Off you go! Go and bid.
0:18:26 > 0:18:30Very scary. Actually sitting and bidding was really scary.
0:18:30 > 0:18:33My heart was doing this. It was good, though.
0:18:33 > 0:18:38- So how did you feel when the hammer went down?- Oh, my goodness!
0:18:38 > 0:18:41Have we done the right thing? It was quite scary. It was very exciting.
0:18:41 > 0:18:44The big question is, guys,
0:18:44 > 0:18:46are you going to knock this little bungalow down?
0:18:46 > 0:18:50- Are we going to knock it down? - We are.
0:18:50 > 0:18:53Yeah! Aw, that's awful. Yay!
0:18:53 > 0:18:55It's going to have to go.
0:18:55 > 0:19:01'So goodbye, tired old bungalow, hello, dream home.
0:19:01 > 0:19:06'Gary and Sarah are aware of the planning restrictions for the green belt land.
0:19:06 > 0:19:12'Their current home is bigger than anything they could build here, but it doesn't have these views.'
0:19:14 > 0:19:19Guys, it's really exciting and I'm dying to know what it's going to look like.
0:19:19 > 0:19:25- Have you drawn up any plans yet? - We've certainly put together three or four sets of drawings.- Yes.
0:19:25 > 0:19:30- And, yeah, I'm doing the drawing work and then...- I'm doing the changes.
0:19:30 > 0:19:32- You're saying yes or no. - No, that can go there.
0:19:32 > 0:19:39I have seen some fabulous, contemporary, single-storey barn-type properties out there.
0:19:39 > 0:19:43- There's so much to choose from. You can use so much wood and glass.- Yes.
0:19:43 > 0:19:49- You could really maximise those views.- Yeah. We certainly want it to be a light property,
0:19:49 > 0:19:54and if we make plenty of use of both the conventional windows
0:19:54 > 0:19:58and perhaps using roof lights, I think we should be able to make a light and airy space.
0:19:58 > 0:20:03What about downstairs, along the back? Are you thinking about having lots of glass,
0:20:03 > 0:20:06- back-folding doors so you can come straight outside?- Definitely.
0:20:06 > 0:20:11Cos we want to make it as open as possible so that we can get out to the views and the garden.
0:20:13 > 0:20:19'Gary and Sarah plan on building a place that flows from the inside out into the glorious surroundings.
0:20:19 > 0:20:23'Before they can break ground on their new home, they have to sell their current one.'
0:20:25 > 0:20:29Gary, you paid £355,000 for this.
0:20:29 > 0:20:32How much do you think it's going to cost you to build your home here?
0:20:32 > 0:20:37Er, we think the building cost will be about £200,000.
0:20:37 > 0:20:40My concern is here, at the end of all the expenditure,
0:20:40 > 0:20:44will your house be worth the amount of money you have spent on it?
0:20:44 > 0:20:51I think that's obviously a realistic concern to have,
0:20:51 > 0:20:54and I think the notion that we get something that is really want we want
0:20:54 > 0:20:57and is to our specification,
0:20:57 > 0:20:59I think that's worth a lot of money.
0:20:59 > 0:21:05And we don't see it purely in terms of the future market value of the property.
0:21:05 > 0:21:10How long do you think it's going to take you? Or how long will it be before you start work here?
0:21:12 > 0:21:16- It's a difficult question.- Might depend if we sell our house or not
0:21:16 > 0:21:22- and there's lots of things we need to...- Do you have to sell your house to move on?
0:21:22 > 0:21:28Yeah, I can't see us trying to do this without selling the house.
0:21:28 > 0:21:35That sense of getting halfway through a project and then feeling frustrated that you can't complete
0:21:35 > 0:21:40wouldn't be a very nice feeling, really. We'd get very frustrated.
0:21:40 > 0:21:46- So it might be a two-year process. - It's been on the market 18 months now and nothing's moving.
0:21:46 > 0:21:48Perhaps you should take it to auction!
0:21:48 > 0:21:51- Perhaps!- Just a thought!
0:21:51 > 0:21:54- It is a thought.- Good thought.
0:21:54 > 0:21:58- I'm really excited. This is such an exciting project. Great meeting you. - Thank you.
0:21:58 > 0:22:01- Congratulations. - Thank you very much.
0:22:01 > 0:22:05- Hopefully you'll be able to come back and see it in all its glory. - Hopefully.
0:22:07 > 0:22:10I am just so pleased that after all that searching,
0:22:10 > 0:22:15Gary and Sarah have finally found the perfect spot for their new family home.
0:22:15 > 0:22:18Time is sadly up for this old bungalow.
0:22:18 > 0:22:23But the work all hinges on the sale of their current property.
0:22:23 > 0:22:25That's stressful in this market.
0:22:25 > 0:22:28Find out how it goes later in the programme.
0:22:29 > 0:22:34'Coming up, I'm in Leeds where there's a treat in store for me at this terraced property.'
0:22:34 > 0:22:39Look at that bathroom. Absolutely lovely. What a lovely surprise that is.
0:22:40 > 0:22:45'In Dorset, Gary and Sarah have found applying for planning permission a difficult process.'
0:22:45 > 0:22:49You know, you get a reply back which isn't very positive,
0:22:49 > 0:22:51I think that does knock you.
0:22:51 > 0:22:55'But first, how has Andreas got on?'
0:22:55 > 0:22:59The whole project has been a challenge from the start.
0:23:05 > 0:23:08'We're going back to Dover now to catch up with Andreas.
0:23:08 > 0:23:12'He bought this three-bed Victorian terrace for £58,000.
0:23:12 > 0:23:15'This was, in fact, his fourth property purchase,
0:23:15 > 0:23:21'and he's busily working towards building a substantial portfolio for his growing family.'
0:23:21 > 0:23:24My intention is to retire when I'm 40.
0:23:24 > 0:23:30- Wow.- So I've got another ten years to get a minimum of ten houses
0:23:30 > 0:23:34to fully manage, or even more.
0:23:35 > 0:23:41'The house was spread over three levels and had a ramshackle kitchen and bathroom down in the basement.
0:23:43 > 0:23:48'It needed to be renovated completely and the jungle-like garden to be tamed.
0:23:48 > 0:23:53'All that was four months ago. So let's see how Andreas has got on.
0:24:02 > 0:24:07'It's at the back of the house where the changes are most visible.
0:24:07 > 0:24:11'Those lovely French doors make it far more accessible.
0:24:11 > 0:24:14'Perfect for a glorious summer's day.
0:24:15 > 0:24:18'There are certainly big improvements in the kitchen,
0:24:18 > 0:24:22'although Andreas still has some work to do.'
0:24:23 > 0:24:29As you can remember, before the kitchen was a kitchen/bathroom,
0:24:29 > 0:24:33so we've decided to move the bathroom to the ground-floor level
0:24:33 > 0:24:37and open up this whole place as a kitchen/diner.
0:24:37 > 0:24:40It has turned out pretty well.
0:24:40 > 0:24:43I'm very, very impressed with the way it's come out
0:24:43 > 0:24:48and it's more open, more light and more spacious for a family.
0:24:49 > 0:24:54'On the ground floor, Andreas has replastered and carpeted the back reception room.
0:24:56 > 0:25:01'He's resized the front room and converted it into a bathroom.
0:25:01 > 0:25:04'But he'll have to do something about the lack of privacy,
0:25:04 > 0:25:09'as that bay window offers a less than desirable view in both directions.'
0:25:09 > 0:25:13# Let's keep the curtains closed today
0:25:15 > 0:25:20# And hope that everyone will stay away
0:25:20 > 0:25:23I know that the layout is a bit awkward
0:25:23 > 0:25:28and I think this is the first house with a bathroom at the front of the property.
0:25:28 > 0:25:31But the only reason why we had to have the bathroom in the front
0:25:31 > 0:25:35was cos of the sewer pipe, which runs from the front of the building,
0:25:35 > 0:25:40so that made it easier for us to have the bathroom at the front. The windows will be closed up
0:25:40 > 0:25:43and properly sealed off for more privacy.
0:25:45 > 0:25:47'The top floor's a big improvement
0:25:47 > 0:25:52'and Andreas has replastered and refurbished both bedrooms.
0:25:53 > 0:25:58'Although there's a considerable amount of snagging to be done, he's pleased the house
0:25:58 > 0:26:00'is nearly complete.'
0:26:00 > 0:26:05The whole project has been a challenge from the start,
0:26:05 > 0:26:09cos there were more problems that came up as we were going along the renovations.
0:26:09 > 0:26:13Once we started lifting up the floorboards,
0:26:13 > 0:26:16we soon realised that the flooring was rotten,
0:26:16 > 0:26:22so we had to have the floorboards treated. We discovered the roof had a bit of a problem,
0:26:22 > 0:26:24'so we had to remove the roof,
0:26:24 > 0:26:28put it back on again with a bit of flashing on the sides
0:26:28 > 0:26:31to make it up to the standard regulations.
0:26:32 > 0:26:37'Originally, Andreas had a budget of £10,000 to do everything in the property.
0:26:37 > 0:26:41'So, with all the unforeseen problems, did he manage to keep to it?'
0:26:42 > 0:26:45Doing the calculations yesterday, I was a bit surprised,
0:26:45 > 0:26:48cos it has added up to about £18,000.
0:26:48 > 0:26:54But we knew from the word go that we were going to spend a bit more money.
0:26:54 > 0:27:01But looking at the whole turnout of the completed work, I think it's worth it.
0:27:03 > 0:27:06'But, of course, Andreas is a man with responsibilities.
0:27:06 > 0:27:12'The whole reason for renovating property is to build a better life for himself, his wife Sophie
0:27:12 > 0:27:14'and their baby son, Damario.'
0:27:15 > 0:27:19My wife has seen the house for the first time since three or four months ago
0:27:19 > 0:27:22and she's quite pleased with the whole turnout.
0:27:22 > 0:27:25She was actually amazed.
0:27:25 > 0:27:28And it's good to get that moral support from your partner
0:27:28 > 0:27:32and I was happy that she's happy, so everyone's happy.
0:27:34 > 0:27:37'Will they be happy once they know what the value of the place is
0:27:37 > 0:27:40'now the work's almost complete?
0:27:41 > 0:27:46'Time to ask two local estate agents for their expert opinions.'
0:27:46 > 0:27:50My first impressions are very much a work in progress,
0:27:50 > 0:27:52but I feel it's got potential for the lettings market.
0:27:52 > 0:27:57With these properties, the bathrooms are not normally in a good position,
0:27:57 > 0:27:59so moving the bathroom is an option.
0:27:59 > 0:28:03Whether to put it to the front of the house in a bay window
0:28:03 > 0:28:06on the pavement is a good idea, I'm not so sure.
0:28:06 > 0:28:12'Hm. Some mixed reviews there, then. Andreas bought the house for £58,000
0:28:12 > 0:28:18'and spent £18,000 on the renovation. That makes a total outlay of £76,000.
0:28:18 > 0:28:21'How much value has he added?'
0:28:23 > 0:28:27If I was to put this property on the market at this present time,
0:28:27 > 0:28:30it would achieve somewhere in the region of £100,000.
0:28:30 > 0:28:34This house, when it's all completed, if it went onto the open market for sale,
0:28:34 > 0:28:37I would expect it to achieve £100,000 to £110,000.
0:28:37 > 0:28:44'Those valuations could mean a gross profit of between £24,000 and £34,000.'
0:28:45 > 0:28:47Wow! That's exciting!
0:28:47 > 0:28:54So we can actually sell the house tomorrow, then, if we can get a bit of a profit.
0:28:54 > 0:28:56So that's really good news.
0:28:57 > 0:29:01'But it may not be as easy as Andreas thinks to realise that profit,
0:29:01 > 0:29:05'as the housing market in Dover is going through a sticky patch.'
0:29:05 > 0:29:11I think, if it was my property, I would look to rent it out rather than sell.
0:29:11 > 0:29:16In the current market, it would probably sit around for a very long time
0:29:16 > 0:29:18and wouldn't get the value it deserves.
0:29:18 > 0:29:22In today's market, I would say this would rent very easily.
0:29:22 > 0:29:25Sales are very slow at the moment round this area,
0:29:25 > 0:29:28so it would be ideal rental.
0:29:28 > 0:29:33If I was to put this property up for rental, I would be looking to achiever £550 per calendar month.
0:29:33 > 0:29:36If this came on the rental market when it's finished,
0:29:36 > 0:29:41I would be advising the client to put it on for about £550 per calendar month.
0:29:42 > 0:29:49'That would give Andreas an impressive rental yield of around 8.5 percent. So what's his plan?'
0:29:49 > 0:29:53Test the waters. We'll put the property on the market for two to three months
0:29:53 > 0:30:01and if it doesn't sell, we're more than happy to keep the property for maybe another two, three, four years
0:30:01 > 0:30:04and then decide to sell later.
0:30:05 > 0:30:08'Although Andreas has found this quite challenging,
0:30:08 > 0:30:12'he's as determined as ever to continue building his portfolio
0:30:12 > 0:30:16'and realise his dream of retiring early.'
0:30:16 > 0:30:22We're planning to hopefully sell this house as quickly as we can
0:30:22 > 0:30:24or remortgage to release some equity
0:30:24 > 0:30:28and move onto another property as soon as we can,
0:30:28 > 0:30:33cos time is running out. I'm getting old and I need to retire as soon as possible
0:30:33 > 0:30:36and travel the world.
0:30:40 > 0:30:46'I'm in Armley near Leeds, which was the heartland of Britain's industrial revolution.
0:30:46 > 0:30:53'The woollen mills have long since closed and today the area's proximity to Leeds City Centre
0:30:53 > 0:30:56'and the university is what draws people here.
0:30:56 > 0:31:03'And, in 2006, a national radio poll voted one street in Armley the friendliest in Britain.
0:31:03 > 0:31:07# Any time you like to take a walk
0:31:07 > 0:31:12# Just walk down friendly street
0:31:13 > 0:31:19I can't imagine you'd find a much more traditional street of Victorian terraces than this.
0:31:19 > 0:31:21I can't imagine it's changed much in 150 years.
0:31:21 > 0:31:26You can almost imagine the washing being strung out between the properties.
0:31:26 > 0:31:31Let's hope the property I'm here to see has had some updating in that time.
0:31:31 > 0:31:39It's this. £45,000 to £65,000 was the guide price. Two bedrooms. Let's take a look inside.
0:31:39 > 0:31:43# You won't see millionaire mansions
0:31:43 > 0:31:48# But you will meet wonderful people
0:31:48 > 0:31:52# That you can tell your troubles to
0:31:53 > 0:31:58So, what have we got? Well, straight through the front door into your living room.
0:31:58 > 0:32:02Not a bad size space and it doesn't seem to be in too bad condition.
0:32:02 > 0:32:05Quite a small kitchen there, though.
0:32:05 > 0:32:08And maybe... That feels like a very solid wall.
0:32:08 > 0:32:12Think about taking that out to create yourself a nice kitchen/living area.
0:32:12 > 0:32:16That's certainly something I'd consider. But, as a starting point,
0:32:16 > 0:32:19it looks like it's been reasonably well looked after.
0:32:19 > 0:32:21Let's hope it continues that way.
0:32:23 > 0:32:27'The vibrant wallpaper certainly makes a striking impression,
0:32:27 > 0:32:32'but I'd neutralise the decor to ensure it appeals to the widest market.'
0:32:32 > 0:32:36Well, upstairs, what have we got? Straight away, I'm seeing a nice new radiator,
0:32:36 > 0:32:40so that's good to see. Nice up-to-date central heating.
0:32:40 > 0:32:44You've got a doorway which leads to the second floor, where your second bedroom is,
0:32:44 > 0:32:49and what a lovely surprise, look at that bathroom. Absolutely lovely! So that doesn't need any work.
0:32:49 > 0:32:52Through to the first bedroom, on the first floor.
0:32:52 > 0:32:56It's not a bad size. It actually is bigger than it feels.
0:32:56 > 0:32:59These cupboards with the mirrors don't do this room justice.
0:32:59 > 0:33:02Get rid of those and you've got a nice size space.
0:33:02 > 0:33:06But there is something that's missing.
0:33:07 > 0:33:09This is a solid wall.
0:33:09 > 0:33:14Window at the front, no window at the back.
0:33:14 > 0:33:17That's because this is no ordinary terraced house.
0:33:20 > 0:33:23'This property is what's known as a back-to-back.
0:33:23 > 0:33:28'That is, two terraced streets built, yes, you guessed it, back to back.
0:33:28 > 0:33:33'A similar property with a back garden would sell for £20,000 to £30,000 more
0:33:33 > 0:33:35'or rent out for a similar amount,
0:33:35 > 0:33:39'so it would seem a back-to-back is worth having.
0:33:39 > 0:33:42# Get back, yeah, get back
0:33:43 > 0:33:46# Get back to where you once belonged
0:33:46 > 0:33:48# Get back, JoJo
0:33:48 > 0:33:51'The second bedroom is in the attic conversion
0:33:51 > 0:33:54'and there is the possibility of adding further rooms.
0:33:54 > 0:33:59'So, from the top of the terrace, it's down to the bottom to this cellar.
0:33:59 > 0:34:03'Perhaps this could be a home gym or cinema or games room.
0:34:03 > 0:34:08'But maybe I'm getting a little carried away, and it's just a useful storage area.
0:34:09 > 0:34:13# Get back, yeah, get back
0:34:13 > 0:34:17'The rental market in Armley is strong and the area attracts many first-time buyers,
0:34:17 > 0:34:20'but it does have a tragic past.'
0:34:26 > 0:34:31Well, nowadays, the local park here is a lovely place to come to,
0:34:31 > 0:34:36but up until the 1950s, it and much of the surrounding area
0:34:36 > 0:34:43harboured a silent but deadly killer. There was a local asbestos factory, and in those days,
0:34:43 > 0:34:46they didn't understand the dangers of asbestos dust,
0:34:46 > 0:34:51so that dust used to just spew out into the local environment.
0:34:51 > 0:34:55Children, apparently, used to play in the dust, even having snowball fights.
0:34:55 > 0:35:00Well, as you can imagine, the health effects of that have been literally tragic.
0:35:00 > 0:35:03Over 300 people have died already
0:35:03 > 0:35:06and the fear is there are many more deaths to come.
0:35:06 > 0:35:10Now, the houses round here were also covered in dust.
0:35:10 > 0:35:13all those houses now have been cleaned, including ours,
0:35:13 > 0:35:16which does have a certificate.
0:35:16 > 0:35:21Sadly, the legacy for the people who live here isn't quite so easy to get rid of.
0:35:22 > 0:35:25'The asbestos factory closed over 50 years ago
0:35:25 > 0:35:29'and Armley now has a clean bill of health.
0:35:33 > 0:35:37'I asked a local estate agent for his opinion on this property
0:35:37 > 0:35:40'and the local area.'
0:35:40 > 0:35:42Armley's a great area. Very popular with local students
0:35:42 > 0:35:47and the first-time buyer market, as well. Great local facilities,
0:35:47 > 0:35:51transport links, local amenities. Popular for that end of the market.
0:35:52 > 0:35:55First impression of the house, it's in fairly good condition.
0:35:55 > 0:36:00It doesn't look like it'll need too much work to get to a rentable or saleable standard.
0:36:00 > 0:36:03So quite an easy turnaround.
0:36:04 > 0:36:09'The guide price for this place was £45,000 to £65,000.
0:36:09 > 0:36:12'Once renovated, what could it sell for?'
0:36:13 > 0:36:19Once the work's completed and finished, anywhere in the region of £70,000 to £75,000,
0:36:19 > 0:36:22'How much could it achieve on the rental market
0:36:22 > 0:36:24'and who might it appeal to?'
0:36:24 > 0:36:28As a rental property, it's going to lean towards people studying at the local university
0:36:28 > 0:36:34as it's only five or ten minutes away, paying in the region of £450 to £475 per calendar month.
0:36:35 > 0:36:40Well, our back-to-back terrace clearly needs to be brought back to life,
0:36:40 > 0:36:43but it's a decent house in what is now a decent area
0:36:43 > 0:36:47and I think it could return some good investment potential.
0:36:47 > 0:36:50Let's see who bought it when it went under the hammer.
0:36:51 > 0:36:54£40,000 at the bottom of the guide to get me away.
0:36:55 > 0:36:5835, then? Don't mind where we start. £35,000.
0:36:58 > 0:37:0030, then. Thank you very much. I knew it was.
0:37:00 > 0:37:0432. 34. 36. 38.
0:37:04 > 0:37:08And £40,000. 42 I have. 46. 48,000.
0:37:08 > 0:37:1248 I have. And 50. £50,000 on my left.
0:37:12 > 0:37:1550,000. 52. 54,000.
0:37:15 > 0:37:18And a half, sir? 54 and a half?
0:37:18 > 0:37:2354 and a half I have. 55? No? At £54,500 for the first time.
0:37:23 > 0:37:26At £54,500 for the second. Are you all out?
0:37:26 > 0:37:30Sorry, ladies and gentlemen, we're not quite there on that one.
0:37:30 > 0:37:32'The house didn't sell under the hammer,
0:37:32 > 0:37:36'as bidding stopped at £54,500,
0:37:36 > 0:37:40'so it failed to reach its £55,000 reserve price.
0:37:40 > 0:37:43'However, after the auction, personal trainer Patrick
0:37:43 > 0:37:47'struck a deal to pay exactly that reserve price.'
0:37:47 > 0:37:51# Oh, let's get physical, physical
0:37:51 > 0:37:57# I wanna get physical, let's get physical
0:37:57 > 0:38:00'I met up with Patrick at the back-to-back.'
0:38:01 > 0:38:03Patrick, lovely to meet you. Congratulations.
0:38:03 > 0:38:07- Nice to meet you.- Tell me why you wanted to buy this place.
0:38:07 > 0:38:10Primarily to buy to renovate to rent out.
0:38:10 > 0:38:13Oh, OK. Is this something you do?
0:38:13 > 0:38:17I did one last year in a similar area, just about a mile away.
0:38:17 > 0:38:20And I have one other rental property, so this will be the third.
0:38:20 > 0:38:24- What happened at the auction. You didn't actually get it. - I didn't. Nobody got it.
0:38:24 > 0:38:30Just after the auction, one of the staff approached me and showed me what the reserve figure was
0:38:30 > 0:38:35and ask if I was interested. Phoned my wife, we talked about it and agreed to pay £55,000.
0:38:35 > 0:38:41- What's your background?- 25 years in financial administration
0:38:41 > 0:38:45and then a career change about five years ago and I'm now a personal trainer.
0:38:45 > 0:38:50- Personal trainer?- Yes.- As in build those biceps, running, jogging?
0:38:50 > 0:38:55Yeah. I've got clients who want to put weight on, people who want to lose weight,
0:38:55 > 0:38:58people who want to train for marathons or bike rides.
0:38:58 > 0:39:01So quite a variety of people that I work with.
0:39:01 > 0:39:05- So you do that and this at the same time?- Yeah. A lot of clients like to work on an evening
0:39:05 > 0:39:08when they're back from work, or before work,
0:39:08 > 0:39:11so it means, quite a lot during the day time, I've got free time,
0:39:11 > 0:39:14so there's time to come here and work hands-on.
0:39:14 > 0:39:18'Well, it seems Patrick will be getting physical with this renovation.
0:39:18 > 0:39:21'So, what appealed to him about this place?'
0:39:23 > 0:39:27Well, what attracted me to it was, I've looked at quite a lot of houses over the past year
0:39:27 > 0:39:31and there's been some pretty horrible-looking ones coming to auction,
0:39:31 > 0:39:36- and this was one of the tidiest. - Right. So tell me exactly what you're going to do to it.
0:39:36 > 0:39:40Take off wallpaper, redecorate in neutral colours,
0:39:40 > 0:39:46fix up the kitchen, cellar's in pretty good condition, just make sure everything works down here properly,
0:39:46 > 0:39:48get the boiler serviced and certificated.
0:39:48 > 0:39:54Upstairs, bathroom needs very little doing to it, although we will lighten it a bit, it's a bit dark.
0:39:54 > 0:39:59Bedroom, again, redecorate in there. We'll probably keep the wardrobes,
0:39:59 > 0:40:02fix them up, those glass wardrobes should be decent.
0:40:02 > 0:40:06And then the top room, bit more work in there, new carpet,
0:40:06 > 0:40:09some holes in the wall need filling
0:40:09 > 0:40:14and then generally tidy that up and fix up the banister rail, cos that looks pretty dangerous.
0:40:15 > 0:40:20'That all seems straightforward. Out front, the external cladding needs to be checked
0:40:20 > 0:40:25'and I'd love to see this terrace restored to its original Victorian brick.'
0:40:25 > 0:40:30We'll take off the cladding and see what the brickwork's like underneath, see if it needs re-pointing,
0:40:30 > 0:40:33- see how big a job it is.- Would you like to take it back to brick?
0:40:33 > 0:40:38- Yeah, back to original brick. That would be ideal.- That'd be lovely. It'd fit in beautifully.
0:40:38 > 0:40:43- It should do, because they are brick houses and it should be celebrated, not hidden.- Yes.
0:40:43 > 0:40:48- But is it hiding any problems? We'll have to see when it comes off. - Any idea of cost?
0:40:48 > 0:40:53Budget, including legals, financing and stuff, is £6,500 in total.
0:40:53 > 0:40:58- Wow.- Which seems like a lot, but I've budgeted decent money for the exterior
0:40:58 > 0:41:03- in case we have to get a professional firm in to do the clearing on the cladding.- Right.
0:41:03 > 0:41:07- What kind of timescale for sorting it out?- Hopefully within a month.
0:41:07 > 0:41:13- A month?- A month, yeah. We're going to prioritise the inside first and then do the exterior after,
0:41:13 > 0:41:18bearing in mind that, if we're showing round potential tenants,
0:41:18 > 0:41:22the inside is what will sell it, and we'll say the exterior is going to be renovated.
0:41:22 > 0:41:24- Congratulations. Good luck. - Thank you.
0:41:24 > 0:41:28- And we look forward to seeing how you get on.- Thank you, Martin.
0:41:28 > 0:41:30# Let me hear your body talk
0:41:30 > 0:41:34Well, personal trainer Patrick has certainly got himself a good property here,
0:41:34 > 0:41:40but I'm a bit concerned that this cladding might prove to be more of a problem than he's anticipating.
0:41:40 > 0:41:43How will he get on? You can find out later in the show.
0:41:46 > 0:41:51Well, this is the part of the show where we go back to see what's happened to our properties.
0:41:51 > 0:41:55- Did our buyers do everything they'd hoped to?- Time to find out.
0:41:58 > 0:42:03'We return to Dorset now where, initially, I'd hoped this country lane
0:42:03 > 0:42:06'would lead to a charming country cottage.
0:42:07 > 0:42:10'Instead, it was this bungalow,
0:42:10 > 0:42:13'which was more rundown than rustic.
0:42:13 > 0:42:19'But much more impressive was the 1.5 acres of land it sat on.
0:42:21 > 0:42:26'Sarah and her husband Gary bought it for £355,000.
0:42:26 > 0:42:33'I was keen to find out whether their plan for the property was to do it up or knock it down.'
0:42:34 > 0:42:40- We are going to knock it down. - Yeah! Aw, that's awful. Yay! - It's going to have to go.
0:42:41 > 0:42:45'Sarah and Gary were relying on the sale of their current home
0:42:45 > 0:42:47'to finance the building of their new one.
0:42:47 > 0:42:51'As the land was green belt, they knew there would be building restrictions.
0:42:51 > 0:42:56'We've returned two years later to see how they got on.
0:43:01 > 0:43:06'Well, the couple's hopes and dreams of a new home are frozen in time.
0:43:09 > 0:43:14'Sadly, their plan to knock down the bungalow and build a new property
0:43:14 > 0:43:18'is mired in a web of red tape and planning restrictions.
0:43:20 > 0:43:26'Sarah and Gary have been refused permission to demolish the bungalow and build a five-bedroom house.'
0:43:27 > 0:43:34It has been quite slow, cos it's two years on since we bought the property at auction.
0:43:34 > 0:43:38I think the thing that's taken the time was the initial approach to the planners,
0:43:38 > 0:43:42just to find out what we might be able to do, and quite a negative response.
0:43:45 > 0:43:52I think it is demoralising when you put in to the planners and think you're taking a step forward
0:43:52 > 0:43:57and then you get a reply back which isn't very positive, that does knock you.
0:43:58 > 0:44:03'Despite their frustrations, Sarah and Gary are keen to work closely with the planners
0:44:03 > 0:44:07'as they appreciate the natural beauty the planners are trying to protect
0:44:07 > 0:44:10'is the very reason they want to live here.'
0:44:20 > 0:44:24'The couple have also had to contend with issues over the sale of their current home.'
0:44:25 > 0:44:27We took the property off the market
0:44:27 > 0:44:35because the climate was just not really conducive to getting a good price for the existing property.
0:44:35 > 0:44:38So, currently, we are off the market
0:44:38 > 0:44:45and so, were it not for the extended planning process that we've gone through
0:44:45 > 0:44:51to get where we are today, I suppose it would've been an extremely frustrating process.
0:44:51 > 0:44:54But, as it happens, the planning process has been a long one,
0:44:54 > 0:44:59so we haven't been that frustrated that we're not moving forward with building work.
0:45:00 > 0:45:04'How has this lack of progress impacted on the couple's financial situation?'
0:45:06 > 0:45:09It's not without financial implication,
0:45:09 > 0:45:14because you do end up paying two lots of some of the fees.
0:45:14 > 0:45:21You're paying two lots of council tax, two lots of some of the utility bills.
0:45:21 > 0:45:29So you don't do these things and get away with a property without any incidental costs at all,
0:45:29 > 0:45:34but just presently, it's not hurting too much.
0:45:34 > 0:45:36He said cautiously.
0:45:37 > 0:45:42'I have no doubt Sarah and Gary's strength of purpose and united front
0:45:42 > 0:45:46'will see them succeed in their aspirations.'
0:45:47 > 0:45:51# Stronger together, stronger
0:45:51 > 0:45:54# We could be stronger together
0:45:54 > 0:45:57'The couple are continuing to work with the planning department.
0:45:57 > 0:46:03'They're close to getting plans approved to convert the property into a five-bedroom chalet bungalow
0:46:03 > 0:46:05'which adheres to permitted development rules.
0:46:05 > 0:46:11'It's been a long, hard slog, but Sarah and Gary are determined to build their dream home.
0:46:11 > 0:46:14'This project is certainly testament to the old saying,
0:46:14 > 0:46:16"patience is a virtue."
0:46:16 > 0:46:20# It would try
0:46:20 > 0:46:24# The patience of angels
0:46:24 > 0:46:29We have seen it as a long-term process, so in that sense,
0:46:29 > 0:46:36we haven't really set our hearts on achieving specific things in specific timescales.
0:46:36 > 0:46:40I think we would be hoping that certainly within two years,
0:46:40 > 0:46:44everything would be complete, we'll have built
0:46:44 > 0:46:49and hopefully be in the property of our dreams.
0:46:51 > 0:46:54'We invited two local estate agents
0:46:54 > 0:46:56'to give us their opinion and valuations
0:46:56 > 0:47:00'based on Gary and Sarah's permitted development plans.'
0:47:01 > 0:47:06I think, taking this property, in its current two-bed state, to a five-bed modern property
0:47:06 > 0:47:11is a very good idea and it would fit in very well with the locality.
0:47:11 > 0:47:14The property does need considerable modernisation
0:47:14 > 0:47:17but it's set in one of the best locations locally.
0:47:17 > 0:47:20I think the aesthetic appearance is vital.
0:47:20 > 0:47:22The kitchen needs to be a big feature
0:47:22 > 0:47:26and they need to decide whether they plan a contemporary design
0:47:26 > 0:47:28or something more traditional.
0:47:29 > 0:47:33'Sarah and Gary paid £355,000 for the bungalow
0:47:33 > 0:47:37'and estimate their permitted development build would cost around 200 grand,
0:47:37 > 0:47:41'totalling £555,000.
0:47:42 > 0:47:46'What value do the estate agents believe the property could achieve?'
0:47:47 > 0:47:56I think that the value is going to be something in the region of £650,000, maybe a fraction more.
0:47:56 > 0:47:58Given the location and what the plans entail,
0:47:58 > 0:48:04there would be a high demand for this property. I would suggest a figure in the region of £750,000.
0:48:05 > 0:48:09'Well, that's £100,000 difference in valuations,
0:48:09 > 0:48:13'but it does prove that whether Sarah and Gary do it up
0:48:13 > 0:48:18'or knock it down, this property's a very sound financial investment.
0:48:18 > 0:48:22'So, despite the trials and tribulations of the past two years,
0:48:22 > 0:48:28'do the couple have the drive and determination to see this project through?'
0:48:28 > 0:48:31- Yeah, absolutely. - Oh, yeah.- Definitely.
0:48:31 > 0:48:34It's fantastic to have an opportunity
0:48:34 > 0:48:38to literally be working with a blank sheet of paper
0:48:38 > 0:48:40and deciding exactly what we'd like,
0:48:40 > 0:48:45so we're coming up with the layout that we want and the bedrooms that we want
0:48:45 > 0:48:49and we'll configure the spaces in the way that we want them to be,
0:48:49 > 0:48:53- so I'm sure it's going to be well worthwhile, what we've done.- Yeah.
0:48:53 > 0:48:56Really exciting. Very exciting project.
0:48:56 > 0:49:00'I really admire their resolution and determination
0:49:00 > 0:49:03'and I look forward to walking up this lovely country lane
0:49:03 > 0:49:08'and finally seeing the home this couple and this land deserve.'
0:49:12 > 0:49:16'Let's get back to the back-to-backs of Armley, Leeds.
0:49:23 > 0:49:29'These red-brick houses are as fine an example of a traditional Victorian terrace
0:49:29 > 0:49:34'as you're likely to see. Apart from this one, with its 80s pebbledash cladding.
0:49:37 > 0:49:40'The property was bought by personal trainer Patrick.
0:49:40 > 0:49:44'He paid £55,000 for the terraced house
0:49:44 > 0:49:47'and planned to restore the front of it.'
0:49:49 > 0:49:53- Would you like to take it back to original brick? - Yeah, that would be ideal.
0:49:53 > 0:49:57- Wow.- Cos they are brick houses and it should be celebrated, not hidden.
0:49:57 > 0:50:02'Patrick also planned to neutralise the interior.
0:50:02 > 0:50:07'So, two months later, has he restored this back-to-back brick by brick?'
0:50:07 > 0:50:10# Back to life
0:50:10 > 0:50:12# Back to reality
0:50:12 > 0:50:16# Back to the here and now, yeah
0:50:16 > 0:50:20As you can see, we've had the cladding removed manually,
0:50:20 > 0:50:23but it's left a cement residue on the brickwork
0:50:23 > 0:50:29and the past two weeks has been bitterly cold and too cold to use an acid wash.
0:50:29 > 0:50:32However, we've test-washed it in a couple of places
0:50:32 > 0:50:36and you can see the difference between the clean brick and what it looks like at the moment.
0:50:36 > 0:50:41We've also got, just above the kitchen window,
0:50:41 > 0:50:46we need to renew the lintel and we're also going to renew the kitchen window at the same time,
0:50:46 > 0:50:49so that will be done probably this week or next week.
0:50:50 > 0:50:53'Let's take a look inside.
0:50:54 > 0:50:57'Patrick has removed the striking feature wallpaper
0:50:57 > 0:51:00'and redecorated in light and neutral tones
0:51:00 > 0:51:05'to ensure that the place appeals to the widest market.
0:51:05 > 0:51:08'In the kitchen, he kept the existing units,
0:51:08 > 0:51:13'replacing only the damaged doors, the lower cupboards and the kitchen worktop.'
0:51:14 > 0:51:17In the kitchen, we already had these existing wall units
0:51:17 > 0:51:21and we wanted to get new doors to match the upper units,
0:51:21 > 0:51:26so we had a local kitchen manufacturer who made them to measure for us.
0:51:26 > 0:51:29We took off the old tiles and this is a work in progress.
0:51:29 > 0:51:32We haven't quite finished the new tiles yet.
0:51:32 > 0:51:36We put in a new work surface, cos the previous surface was pretty horrible,
0:51:36 > 0:51:39and just redecorated and freshened up throughout.
0:51:39 > 0:51:44'Upstairs in the master bedroom, the cosmetic changes continue.
0:51:44 > 0:51:47'Patrick recarpeted this room and hallway
0:51:47 > 0:51:51'and fixed the broken sliding doors on the fitted wardrobes.
0:51:55 > 0:51:59'In the bathroom, he has kept the suite and accessories
0:51:59 > 0:52:03'and simple spruced up the walls with a lick of paint.
0:52:03 > 0:52:09'Like the rest of the house, the bathroom needs finishing touches to cross the finish line.
0:52:09 > 0:52:13'But has personal trainer Patrick struggled to keep himself motivated,
0:52:13 > 0:52:17'working with his clients and on the renovation at the same time?'
0:52:20 > 0:52:23I was on site quite a lot, racing from one job to another.
0:52:23 > 0:52:27I'd finish with a client, come here, do a little bit, run off to another client,
0:52:27 > 0:52:31so it was a little bit stressful. Some nights I was just so tired out.
0:52:31 > 0:52:35But that comes with the territory, so it wasn't a big problem.
0:52:37 > 0:52:41'The second bedroom in the attic has had a new carpet put down
0:52:41 > 0:52:43'and the walls have been freshened up.
0:52:43 > 0:52:51'In 2006, a road in Armley came first in a national radio poll to find Britain's friendliest street.
0:52:51 > 0:52:53'So, did Patrick get a warm welcome here?'
0:52:53 > 0:52:57The neighbours next door are always checking up, am I OK?
0:52:57 > 0:53:03The chap next door is quiet. Chap two doors down in a builder who's going to help me with the external stuff.
0:53:03 > 0:53:08So the neighbours are great here, and that's really important if you're buying a house of this type.
0:53:08 > 0:53:13'So, it would seem Armley really is full of friendly face.'
0:53:13 > 0:53:17# You'll love those gentle folks with homely places
0:53:17 > 0:53:20# Happy hearts and friendly faces
0:53:20 > 0:53:24# Way back in my home town
0:53:24 > 0:53:29'Less likely to make Patrick smile is being one month behind schedule.
0:53:29 > 0:53:33'That's double his original timescale. But what about his budget?'
0:53:33 > 0:53:37We budgeted £6,500, including contingencies.
0:53:37 > 0:53:41A big chunk of that budget was for the external works.
0:53:41 > 0:53:44They're not finished yet, but by the time they are finished,
0:53:44 > 0:53:47I'll be into about £3,600, £3,700.
0:53:47 > 0:53:52A lot of things came in cheaper, like the electrician was cheaper than we budgeted,
0:53:52 > 0:53:56chipping the cladding off was cheaper than hiring a skip and putting scaffolding up
0:53:56 > 0:54:01and getting it shot-blasted, which is what I originally budgeted for. So the main savings were on that.
0:54:02 > 0:54:09'Well done, Patrick. That will take his total outlay to just under £59,000.
0:54:09 > 0:54:15'So, is he still planning to let it out or will he sell it on?'
0:54:15 > 0:54:21I'm going to cover my options. Ideally, the faster option is to rent it out.
0:54:21 > 0:54:26But if there's value in it, it might be worth considering selling it, as well,
0:54:26 > 0:54:31but it's quite a quiet market for first-time buyers. So I'm open to both options.
0:54:34 > 0:54:37'Let's hear from two local estate agents
0:54:37 > 0:54:40'who may help Patrick make up his mind.'
0:54:43 > 0:54:47'As you approach the house, you can see from the outside, it still requires some work.
0:54:47 > 0:54:50However, it does make up for it when you come in.
0:54:50 > 0:54:52It's obviously been finished off quite well
0:54:52 > 0:54:54and it's quite spacious.
0:54:56 > 0:54:59It's a great property. It was a quick and easy turnaround, I think.
0:54:59 > 0:55:02Kept it neutral, nice and modern,
0:55:02 > 0:55:06exactly what tenants and buyers want in this market, a blank canvas.
0:55:08 > 0:55:12'What could this property achieve on the rental market?'
0:55:14 > 0:55:19Given current rental demand, somewhere in the region of £500 to £550 per calendar month.
0:55:19 > 0:55:22In rental, I would hope to achieve £500 per calendar month.
0:55:22 > 0:55:28500 is pretty strong. That's probably going to be the top end of what might be achieved.
0:55:28 > 0:55:31450 might be more realistic. But 500, if I could get that, that'd be great.
0:55:32 > 0:55:37'Bearing in mind Patrick's total expenditure of just over £59,000,
0:55:37 > 0:55:40'even a rental figure of £450 per calendar month
0:55:40 > 0:55:46'would still give him a yield of between nine and ten percent. Not too bad at all.
0:55:46 > 0:55:50'What would be the estate agents' sale valuations?'
0:55:53 > 0:55:57I would hope to achieve £69,950.
0:55:57 > 0:55:59Given the current sales market and demand in this area,
0:55:59 > 0:56:03you're probably looking in the region of £80,000 to £85,000.
0:56:03 > 0:56:05That's a big difference.
0:56:05 > 0:56:11For £85,000, that is probably maybe a little bit over the top.
0:56:11 > 0:56:16Anywhere in between is good. At least it shows I'm not losing money and some value has been added.
0:56:16 > 0:56:21'Even if he sold for the lowest valuation of just under £70,000,
0:56:21 > 0:56:25'that would still give him a pre-tax profit of around ten grand.
0:56:25 > 0:56:28'So what's next for Patrick?'
0:56:30 > 0:56:35Put my feet up, get on with some other projects that I've got in hand, not property related,
0:56:35 > 0:56:37and maybe look at doing another house next year.
0:56:39 > 0:56:42We'll be back next time with more auction-buying stories,
0:56:42 > 0:56:45some successful, some less so.
0:56:45 > 0:56:50- So join us next time for more auction action on Homes Under The Hammer.- See you then.- Goodbye.
0:56:52 > 0:56:56Subtitles by Red Bee Media Ltd
0:56:56 > 0:57:00E-mail subtitling@bbc.co.uk
0:57:00 > 0:57:00.