0:00:02 > 0:00:04Hello. Buying property isn't always as easy as it seems.
0:00:04 > 0:00:08It can have its highs and lows, especially when you're stuck in a chain.
0:00:08 > 0:00:12But you can eliminated that process when you buy at an auction.
0:00:37 > 0:00:43- There are all sorts of properties being sold at auction.- And their buyers have all kinds of plans
0:00:43 > 0:00:46to sort them out, and all sorts of budgets.
0:00:46 > 0:00:48So let's see what's up for grabs on today's show.
0:00:51 > 0:00:56'I uncover some hidden period treasures in Derby.'
0:00:57 > 0:00:58Oh, wow!
0:01:01 > 0:01:05'This chapel in Chelmsford has real potential.'
0:01:05 > 0:01:09It's quite exciting to think what you could do with a space like this.
0:01:09 > 0:01:15'And you're unlikely to lose your shirt investing in this London flat, but you may lose some weight.'
0:01:15 > 0:01:19Ooh! Well, climbing up all those stairs would certainly keep you fit.
0:01:21 > 0:01:26'All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:26 > 0:01:29'when they went under the hammer.'
0:01:36 > 0:01:41'I'm in Derby, renowned for its Georgian and Victorian architecture.
0:01:41 > 0:01:44'The city is now adding a modern twist.
0:01:46 > 0:01:51'Derby is moving forward whilst also celebrating its past.
0:01:51 > 0:01:55'Ten minutes' walk from the city centre is the property I'm here to see.'
0:01:58 > 0:02:03These red-brick Victorian properties are very typical of the area.
0:02:03 > 0:02:08You're close to the local schools and facilities, so they make great places to live,
0:02:08 > 0:02:11or maybe as a buy-to-let investment.
0:02:11 > 0:02:16Here's the one that I'm going to see. Guide price was 55,000 quid.
0:02:16 > 0:02:19Let's take a look.
0:02:20 > 0:02:24Nice that you've got the double glazing before you start. Good news.
0:02:24 > 0:02:27Straight into the living room. Very standard layout.
0:02:27 > 0:02:32Open fire, we like that. But if ever you come into a property and the carpet has been peeled back,
0:02:32 > 0:02:35you should start to investigate a bit further.
0:02:35 > 0:02:41Oh, blimey. Yes, the floor is actually moving pretty badly.
0:02:41 > 0:02:45That's not good. That needs investigation.
0:02:45 > 0:02:49In fact, I don't think I can look at very much more of this property
0:02:49 > 0:02:54without finding out what's going on there and maybe... A-ha! The cellar.
0:02:54 > 0:02:57I think the answer's down there.
0:02:58 > 0:03:02'Let's see what horrors lie beneath in the basement.'
0:03:02 > 0:03:06# Don't be afraid of the dark
0:03:07 > 0:03:12Now, intrinsically, cellars are a wonderful thing to have in a property.
0:03:12 > 0:03:16They can make great games rooms or additional space, cinemas, et cetera,
0:03:16 > 0:03:22but they can also be the source of major problems, and as you can see, the...
0:03:22 > 0:03:26The joists are absolutely rotten.
0:03:26 > 0:03:32I better not pull too much more otherwise I might end up having that come down on my head.
0:03:32 > 0:03:38What has happened is that, basically, the air vents to this cellar have been blocked off
0:03:38 > 0:03:46and this has become the perfect place for the formation of both wet and, more seriously, dry rot.
0:03:46 > 0:03:49And the annoying thing is, it could've all been prevented
0:03:49 > 0:03:53by just having an air flow, some air bricks so you can get a flow of air.
0:03:53 > 0:03:58If you've got a cellar, do me a favour, go down there, make sure you can feel a breeze
0:03:58 > 0:04:02and that your cellar isn't as dank as this one is and you can avoid these problems.
0:04:02 > 0:04:07As it is, for the person who buys this, they'll have to spend a bit of money sorting that out.
0:04:07 > 0:04:14'For the cellar to be converted into a liveable space, it will need to be water- and damp-proofed.
0:04:14 > 0:04:16'This process is known as tanking.
0:04:18 > 0:04:23'Meanwhile, back on the ground floor is the back sitting room and the kitchen.
0:04:23 > 0:04:29'Both are in poor condition. I'd recommend getting the plumbing checked and also the electrics.
0:04:31 > 0:04:33'Let's head up top.'
0:04:35 > 0:04:38So, upstairs, I like the look of that.
0:04:38 > 0:04:41That's a roof light. Stick something in the roof itself
0:04:41 > 0:04:46to bring in a bit of natural light, that would be lovely. A big double bedroom at the front.
0:04:46 > 0:04:50Down this corridor, another double bedroom at the back, two really good size rooms.
0:04:50 > 0:04:54And another bit of good news, upstairs bathroom and loo,
0:04:54 > 0:04:59it's old, it's dated, it needs sorting out, but at least it's in the right place.
0:04:59 > 0:05:03'Like the rest of the house, the bathroom needs modernising.
0:05:03 > 0:05:09'But, in contrast with the rest of the property, upstairs feels spacious and bright.'
0:05:10 > 0:05:15One of the nice things about the property is that a lot of the original features are still here.
0:05:15 > 0:05:20You've got the doors, which I'd strip. Some of these old skirting boards are nice, too.
0:05:20 > 0:05:24And look, behind here, there is, I hope, an old fireplace.
0:05:24 > 0:05:28This has probably been covered up like this for 20, 30 years.
0:05:28 > 0:05:31What could possibly be behind here?
0:05:32 > 0:05:34Ready?
0:05:34 > 0:05:36Oh, wow!
0:05:37 > 0:05:40Look at that! And, listen, just hang on a second.
0:05:40 > 0:05:44I wonder if we can see what date it is on this newspaper?
0:05:44 > 0:05:51Fantastic. Daily Mirror, Friday November 13th, 1959.
0:05:53 > 0:05:55# I used to be a headline
0:05:57 > 0:06:00# Now I'm just old news
0:06:00 > 0:06:06'A blend of period detail, modern design and comfort can successfully be achieved.
0:06:06 > 0:06:12'It would be a travesty if these fireplaces were simply ripped out and thrown in a dark cellar.
0:06:15 > 0:06:19'I invited the auctioneer who sold it to shed some light
0:06:19 > 0:06:24'on this property, which had a guide price of £55,000.'
0:06:24 > 0:06:27From first glance outside, you think it looks in quite good order.
0:06:27 > 0:06:30That's because it's had new windows put in.
0:06:30 > 0:06:34But when you get inside, you see what hasn't been done over a course of many years.
0:06:34 > 0:06:37So it needs quite a bit of hard work doing to it, really.
0:06:39 > 0:06:45'Once the property has been renovated, what could be the value if it was sold on?'
0:06:45 > 0:06:51Renovated to a good standard, it would have a market value, on today's market, of around £90,000.
0:06:52 > 0:06:55'And the rental value?'
0:06:55 > 0:06:57Assuming full renovation and good standard,
0:06:57 > 0:07:01its rental value would be about £450 per calendar month.
0:07:02 > 0:07:06Well, you are going to have to set aside a reasonable chunk of your budget
0:07:06 > 0:07:09to sort out the dry rot problem and, of course, the floor.
0:07:09 > 0:07:13But apart from that, this is a really good little house.
0:07:13 > 0:07:16All the rooms are in the right place and either as a place to live
0:07:16 > 0:07:19or a buy-to-let investment, it's a good one to go for.
0:07:19 > 0:07:21Let's see who spotted it at the auction.
0:07:22 > 0:07:26Guide price is 55-plus. Would someone like to start me at 58?
0:07:26 > 0:07:2858,000.
0:07:28 > 0:07:3158. 56? Start me where you like.
0:07:31 > 0:07:3556, thank you very much. 56,000 I have at the back.
0:07:35 > 0:07:38At £56,000. 57 I've got on a proxy bid.
0:07:38 > 0:07:42At 57,000. 58, sir? 58 is bid.
0:07:42 > 0:07:4459 is bid on a proxy.
0:07:44 > 0:07:4659,000. £60,000, thank you very much.
0:07:46 > 0:07:51At £60,000 only bid. £60,500? £60,500.
0:07:51 > 0:07:54At £60,500. 61? 61,000.
0:07:54 > 0:07:5761,500. 61,500.
0:07:57 > 0:08:0362? £62,000. 62,500. It's in the market, the bids are yours. 63.
0:08:03 > 0:08:0763,500. 64,000. 64,500.
0:08:07 > 0:08:1165,000. 65 and a half. 66?
0:08:11 > 0:08:1466 is bid.
0:08:14 > 0:08:17At £66,000. 500 somewhere else?
0:08:17 > 0:08:20It's in the market, we're selling. The bid is £66,000.
0:08:20 > 0:08:24500. He's had second thoughts. 67, sir? 67.
0:08:24 > 0:08:26At 67,000 again.
0:08:26 > 0:08:3067,500. 68,000.
0:08:30 > 0:08:3568,000, definite? At £68,000, going for the first time.
0:08:35 > 0:08:37Second time. Any higher bid?
0:08:37 > 0:08:42- All done at £68,000? - HAMMER BANGS - Sold at 68,000. Thank you.
0:08:42 > 0:08:48'The happy chap there with his successful bid of 68,000 was Roger.
0:08:48 > 0:08:54'He's a car industry consultant and I met him back at his new property.'
0:08:54 > 0:08:57# Jump in my car
0:08:57 > 0:09:00# I wanna take you home
0:09:00 > 0:09:04- Roger, lovely to meet you. - And you, Martin.- Congratulations.
0:09:04 > 0:09:08- Thanks very much. - A great little house. Tell me why you wanted to buy it.
0:09:08 > 0:09:12Well, I needed somewhere to live and I didn't want to have a mortgage
0:09:12 > 0:09:16and I've been to auction before many, many years ago
0:09:16 > 0:09:20and I started looking at houses at auction and I ended up with this one.
0:09:20 > 0:09:25I just want a house for me. Occasionally, my youngest son will stay with me
0:09:25 > 0:09:28or my other son will come up from London and stay,
0:09:28 > 0:09:31so I just wanted a house big enough, didn't want a big garden,
0:09:31 > 0:09:34- and I wanted something that's a project.- Right.
0:09:34 > 0:09:38And this is. Not a big project, but it's enough of a project.
0:09:40 > 0:09:43'Whoops. Be careful where you stand, Roger.
0:09:43 > 0:09:48'The first job will be fixing the rotten floors caused by the dry rot in the cellar.'
0:09:50 > 0:09:53I knew about the floor, I knew what state that was in
0:09:53 > 0:09:57because I was bouncing up and down on the floor when I came to look at it the first time
0:09:57 > 0:10:02- and the estate agent said, "Don't do that!"- Never a good sign!
0:10:02 > 0:10:07- Yeah.- "Don't walk to heavily on the floorboards," always sets those alarm bells ringing.
0:10:07 > 0:10:14- Yeah. And then lots of other things to do to it.- Talk me through exactly what you're going to do.
0:10:14 > 0:10:18Right, well, obviously, a new floor.
0:10:18 > 0:10:21New floor in here and in the kitchen.
0:10:21 > 0:10:27And the bedrooms will just need decorating and rewiring, central heating,
0:10:27 > 0:10:34the normal run-of-the-mill things on top of that. I'd like, if I can afford to, have the cellar tanked.
0:10:34 > 0:10:37But we've got to look into the cost of that.
0:10:37 > 0:10:40- Would be a good extra room. - It would, yeah.
0:10:40 > 0:10:45- Cinema!- Yes.- Pool table! - I would think more of a Scaletrix.
0:10:45 > 0:10:47- Yeah! Really?- Yeah.- Oh, fantastic!
0:10:47 > 0:10:50Yeah. My boys love Scaletrix and we've always had one
0:10:50 > 0:10:53and I had them when I was little and we love it.
0:10:53 > 0:10:57- So you'd have a permanent Scaletrix track in the cellar? Oh, whoa!- Yeah.
0:10:57 > 0:10:59# Toys for boys
0:10:59 > 0:11:01# Toys for boys
0:11:01 > 0:11:03# Play with us
0:11:03 > 0:11:07'Racing cars in the basement would be very cool.
0:11:07 > 0:11:12'But does Roger face a race of his own to get this job done on time and on budget?'
0:11:12 > 0:11:15What kind of budget have you got?
0:11:15 > 0:11:21I've got 20 with a contingency of five and then another contingency of five on top of that.
0:11:21 > 0:11:24Wow. Why are you calling it two lots of five rather than ten?
0:11:24 > 0:11:30I don't want to spend the second one at all, to be quite honest.
0:11:30 > 0:11:34'A £30,000 budget is certainly not to be sniffed at,
0:11:34 > 0:11:37'but what about his schedule?'
0:11:37 > 0:11:40- What kind of timescales to get this sorted?- Three months.
0:11:40 > 0:11:46- OK.- I would like to be, by the end of the three months, actually living in the property.- Right.
0:11:46 > 0:11:51- Who's doing the work?- I've got a builder lined up. He's a friend and he'll project-manage it all.
0:11:51 > 0:11:54Oh, great. What do you do when you're not doing this?
0:11:54 > 0:11:57- I'm a motor industry consultant. - Ooh. What does that mean?
0:11:57 > 0:12:02Well, I work with larger dealer groups improving the business, the customer service
0:12:02 > 0:12:08- and also incentives with manufacturers and programmes, network planning.- Right.
0:12:08 > 0:12:13- So cars in your work and cars in your play with your Scaletrix.- Yeah.
0:12:13 > 0:12:16I know what I prefer! The cars in play!
0:12:16 > 0:12:18I'm going to have to come back and have a play!
0:12:18 > 0:12:22- If I've got it, yeah, you can do! - Listen, congratulations.- Thank you.
0:12:22 > 0:12:25- Well done. We look forward to seeing how you get on.- Lovely.
0:12:26 > 0:12:29# Jump in my car
0:12:29 > 0:12:31I think Roger's got a great place here,
0:12:31 > 0:12:35but do you honestly think that he will sort out other parts of the property
0:12:35 > 0:12:40before he tanks his cellar and gets his slot car racing stuff installed?
0:12:40 > 0:12:45I don't think so! Find out how he gets on later in the show.
0:12:49 > 0:12:53Today I'm in a very peaceful part of Chelmsford in Essex.
0:12:53 > 0:12:57To be precise, I'm in a graveyard and I'm here to see a chapel,
0:12:57 > 0:13:02a museum, a lodge and over 0.2 acres of land.
0:13:02 > 0:13:06Better get started or we'll never get time to see it all!
0:13:08 > 0:13:13'The chapel and the lodge alongside were built in 1886.
0:13:13 > 0:13:16'The grand and dark cloister is awe-inspiring,
0:13:16 > 0:13:20'and while the view of the cemetery may not be to everybody's taste,
0:13:20 > 0:13:25'I find it quite beautiful on this cold and crisp winter's morning.
0:13:31 > 0:13:36'The guide price for this vast auction lot was £400,000.
0:13:38 > 0:13:40'There's a great deal to see here,
0:13:40 > 0:13:44'so let's begin by exploring inside the chapel.'
0:13:46 > 0:13:50This would've been the original chapel of rest.
0:13:50 > 0:13:53Wow! What an incredible space.
0:13:53 > 0:13:57You've got fantastic ceiling height in here. It's really echoey.
0:13:57 > 0:14:01And these beautiful big windows letting all this light in.
0:14:01 > 0:14:04Look at these. Big old stone pillars here.
0:14:04 > 0:14:08It does seem a bit strange to have all of this machinery in here,
0:14:08 > 0:14:12but once you've cleared it, you've got a really big room.
0:14:12 > 0:14:16It's quite incredible to have a look around. Over here there's some old stained glass.
0:14:16 > 0:14:19That would originally have sat over there in the doorway.
0:14:19 > 0:14:24If you rip all the boards off that window, you've got a beautiful stained-glass window.
0:14:24 > 0:14:27I did go round the outside and have a look at it.
0:14:27 > 0:14:33It's a big room and it's quite exciting to think what you could do with a space like this.
0:14:33 > 0:14:36# Hallelujah
0:14:36 > 0:14:40# Hallelujah
0:14:40 > 0:14:44'The stonemasonry here is craftsmanship of the highest order.
0:14:44 > 0:14:50'Whatever happens to this building, I'd like to see as much of its character retained as possible.
0:14:50 > 0:14:53# Hallelujah
0:14:53 > 0:14:56'Opposite the chapel is the lodge.
0:14:56 > 0:14:58'This property has recently been used as an office
0:14:58 > 0:15:01'but was originally the cemetery-keeper's house.
0:15:01 > 0:15:04'There are three rooms downstairs and three upstairs
0:15:04 > 0:15:08'and once again, there are some lovely original features.
0:15:08 > 0:15:12'Converting a church into a residential property is quite common
0:15:12 > 0:15:16'and extremely popular, but can be a mixed blessing.
0:15:16 > 0:15:22'The grand architecture churches offer can sometimes mean compromised living spaces.
0:15:22 > 0:15:26'And as heavenly as stained-glass windows are, they are draughty,
0:15:26 > 0:15:29'meaning it will cost more to heat your home.
0:15:37 > 0:15:41'Tucked in between the archway and the lodge is the cemetery waiting room
0:15:41 > 0:15:46'with yet more beautiful stained-glass windows and an imposing fireplace.
0:15:46 > 0:15:49'Adjoining the lodge is what was previously a museum
0:15:49 > 0:15:54'for the Chelmsford Archaeological Trust. And it's huge!
0:16:01 > 0:16:03'This extension was built in 1991
0:16:03 > 0:16:09'but was designed to complement the Victorian gothic style of the lodge and the chapel.'
0:16:11 > 0:16:16This place is amazing! But you and I know it can't stay this way.
0:16:16 > 0:16:19It must have planning permission to convert it, right?
0:16:19 > 0:16:21Well, yes, it does.
0:16:21 > 0:16:25It comes with planning for the conversion of the existing building
0:16:25 > 0:16:27to provide five two-bedroom cottages,
0:16:27 > 0:16:30one three-bedroom house which is here
0:16:30 > 0:16:33and three one-bedroom duplex apartments.
0:16:33 > 0:16:39So you can see, this is going to be one big old project! But an exciting one.
0:16:42 > 0:16:48'So, planning permission has been granted to turn the old museum into five two-bedroom cottages.
0:16:48 > 0:16:51'The lodge will become a three-bedroom house.
0:16:51 > 0:16:55'The chapel will become two one-bedroom duplex apartments.
0:16:55 > 0:16:59'And the cemetery waiting room will also be a one-bedroom duplex apartment.
0:16:59 > 0:17:04'This auction lot had a guide price of £400,000.
0:17:06 > 0:17:09'I invited a local estate agent
0:17:09 > 0:17:12'to give us his opinion on the place.'
0:17:12 > 0:17:15The property is excellent. Exactly what Chelmsford needs.
0:17:15 > 0:17:20We have a lot of modern housing estates, so a conversion like this
0:17:20 > 0:17:22would be high in demand.
0:17:22 > 0:17:25'How much could the one-bedroom duplex apartments,
0:17:25 > 0:17:30'the two-bedroom cottages and the three-bedroom house be rented out for?'
0:17:31 > 0:17:36For the one-bedroom properties, the rental value would be £700 per calendar month.
0:17:36 > 0:17:41For the two-bedroom properties, the rental value would be £850 per calendar month.
0:17:41 > 0:17:46The three-bedroom house we could rent for £1,100 per calendar month.
0:17:47 > 0:17:55'That's a combined rental income of £7,450 per calendar month. What about sell-on valuations?'
0:17:55 > 0:18:00The one-bedroom properties we'd start from £150,000.
0:18:00 > 0:18:05The two-bedroom properties we'd start from £205,000.
0:18:05 > 0:18:09We would put the three-bedroom house on the market for £300,000.
0:18:09 > 0:18:15'That adds up to a tidy total sale valuation of just over £1.7 million.'
0:18:18 > 0:18:23A massive project but a lucrative one if all goes to plan.
0:18:23 > 0:18:27The return will be quite staggering, so I think it's a fabulous one to go for,
0:18:27 > 0:18:31but living beside a graveyard isn't going to be for everybody.
0:18:31 > 0:18:34Let's find out who wanted this as we head to auction.
0:18:37 > 0:18:41375,000. As good a place as any. Thank you.
0:18:41 > 0:18:44375. 385?
0:18:44 > 0:18:46Yep, 385. 390.
0:18:46 > 0:18:49395. 400.
0:18:49 > 0:18:52410. 415. 420.
0:18:52 > 0:18:54425. 430.
0:18:54 > 0:18:57435. 440. 445.
0:18:57 > 0:19:00And 50. 55. And 60.
0:19:00 > 0:19:04And 65. And 70.
0:19:04 > 0:19:06And 75. And 80.
0:19:06 > 0:19:09And 85. And 90.
0:19:09 > 0:19:11And 95.
0:19:11 > 0:19:13500, sir.
0:19:13 > 0:19:15And 5. No?
0:19:15 > 0:19:18Fresh place, 505.
0:19:18 > 0:19:21510. 515. 520.
0:19:21 > 0:19:23525.
0:19:23 > 0:19:26And 30. 35.
0:19:26 > 0:19:29535. 540. And 45.
0:19:29 > 0:19:34You sure? 540, still with you in the blue shirt. For the first time. Second time.
0:19:34 > 0:19:39- Third and final time at £540,000. Got to go. Sure? - HAMMER BANGS
0:19:39 > 0:19:45'Holding his nerve to win the day was Peter with his bid of £540,000.
0:19:47 > 0:19:54'Peter and his business partner Ryan are specialists in converting barns and period and listed buildings.
0:19:54 > 0:19:57'They have a little history with this property.
0:19:57 > 0:20:00'I met them back at the lodge to find out more.'
0:20:02 > 0:20:07- Guys, congratulations. - Thank you very much.- This is really good news for both of you.
0:20:07 > 0:20:11- Peter, you were the brave bidder on auction day.- Yes, I was indeed.
0:20:11 > 0:20:16- How did that work out?- It was good. We knew where we were going to go with it, or what level.
0:20:16 > 0:20:22We didn't think we'd get so much opposition when it got to a figure we would've liked it to have been.
0:20:22 > 0:20:28But there's always someone comes in on the late side and pushes you up for that extra few quid.
0:20:28 > 0:20:30How much would you have paid for this site?
0:20:30 > 0:20:32Probably between six and a half to seven.
0:20:32 > 0:20:37- So you got a bargain!- Hopefully so. - Didn't you?- Yeah, we feel so.
0:20:37 > 0:20:40I'm intrigued, Ryan. How did you stumble across this?
0:20:40 > 0:20:47About two years ago, we were doing a barn conversion down the road
0:20:47 > 0:20:53and we happened to drive by going to our architect's and spotted a board up and made a couple of phone calls
0:20:53 > 0:20:56and liaised with the agent, came down to have a viewing
0:20:56 > 0:21:01and we were going to put an offer in, but due to financial restraints
0:21:01 > 0:21:05and the way the market had turned, we were unwilling to proceed.
0:21:05 > 0:21:07And we didn't expect it to come back up.
0:21:07 > 0:21:11By chance, coming across the bridge, we saw the board back up.
0:21:11 > 0:21:14- And that's two years on?- Yeah.
0:21:14 > 0:21:18We were sad we couldn't bid on it in the first place, but it came round again.
0:21:18 > 0:21:21- It was meant to be, boys! - Absolutely!
0:21:22 > 0:21:28'Perhaps destiny has played a part in bringing Peter and Ryan to this divine chapel.
0:21:28 > 0:21:31'I'm keen to hear about their vision for this property.'
0:21:32 > 0:21:36So what is the big old plan with this site?
0:21:36 > 0:21:40At the moment, with the structures as they are,
0:21:40 > 0:21:43we're going to get nine residential units out of it.
0:21:43 > 0:21:48That'll be five two-bed apartments, one three-bed house, which is a part of what we're standing in now...
0:21:48 > 0:21:51Which is beautiful. It's going to be stunning.
0:21:51 > 0:21:55And three one-bed apartments.
0:21:55 > 0:21:57So it lends very well to what it is
0:21:57 > 0:22:02and it keep the external of the building as it was
0:22:02 > 0:22:08and enhances the internal, particularly the likes of the chapel, which will be two lovely apartments.
0:22:08 > 0:22:12It's 25-foot-high ceilings, so that'll be wonderful.
0:22:12 > 0:22:16- We'll restore everything back to its original state. - Are these buildings listed?
0:22:16 > 0:22:23- No.- They're not listed. So how far can you go with ripping them apart, taking the windows out?
0:22:23 > 0:22:28- How far can you go? - We don't like to rip out any of the beauty already in existence.
0:22:28 > 0:22:33Work with it, enhance it, make it a feature of the property and bring it along.
0:22:33 > 0:22:41Rather than take the heart out of it, retain it and make use of what's existing on the footprint.
0:22:42 > 0:22:44'The duo have a passion for property
0:22:44 > 0:22:47'and will try to develop this site respectfully
0:22:47 > 0:22:51'with sensitivity to its heritage and location.'
0:22:54 > 0:22:58How long do you think it'll take to develop this site?
0:22:58 > 0:23:03Probably six months we'd expect to get some of them finished and done.
0:23:03 > 0:23:08We'll see how the market goes, see what interest we get over the next few months and go from there.
0:23:08 > 0:23:13Bearing in mind, it's all internal works, so we can start it immediately.
0:23:13 > 0:23:16What's your budget for the total project? How much do you have to spend?
0:23:16 > 0:23:19- Well, do we have to disclose that? - Yes!
0:23:19 > 0:23:22How much will it cost you to develop something like this?
0:23:22 > 0:23:25Because you really are starting from scratch.
0:23:25 > 0:23:29Yes, but the structures are already there, so it's internal finishings and that.
0:23:29 > 0:23:32We're probably talking well under half a million.
0:23:32 > 0:23:35Guys, I think this project had your name on it. It's very exciting.
0:23:35 > 0:23:37I can't wait to see what they all look like.
0:23:37 > 0:23:43- It's been lovely meeting you. Ryan, thank you very much. Peter, well done. Good luck.- Thank you.
0:23:45 > 0:23:50This lovely collection of buildings has certainly fallen into the right hands.
0:23:50 > 0:23:53Now, it is a major project for them, but will they do it in just six months
0:23:53 > 0:23:58and how will the property market be? Will they sell or will they rent?
0:23:58 > 0:24:01You can find out what happens later on in the programme.
0:24:03 > 0:24:09'Coming up, I'm charmed by the kooky but cosy corners of this flat in London.'
0:24:09 > 0:24:12It's a likeable little one-bedroom flat.
0:24:13 > 0:24:19'Have Peter and Ryan succeeded in keeping the character of this period property in Chelmsford?'
0:24:19 > 0:24:25We don't want just straight boxes for anybody. We'd rather have something quirkier and more interesting.
0:24:25 > 0:24:30'But first, Roger's happy to have bagged a bargain on his fixtures and fittings.'
0:24:30 > 0:24:32I got a cracking deal on those.
0:24:39 > 0:24:42'Let's return to Derby and this two-bed terraced house.
0:24:45 > 0:24:49'Roger purchased the property for £68,000
0:24:49 > 0:24:52'and he planned to turn this house into his home.
0:24:57 > 0:25:02'Already plans were being hatched about converting his cellar.
0:25:02 > 0:25:07'I had a suggestion or two of my own as to what it could be used for.'
0:25:07 > 0:25:12- Cinema!- Yes!- Pool table!- No, I would think more of a Scaletrix.
0:25:12 > 0:25:14- Yeah! Really?- Yeah.- Fantastic!
0:25:14 > 0:25:17My boys love Scaletrix and we've always had one.
0:25:17 > 0:25:21- So you'd have a permanent Scaletrix track in the cellar? Oh, whoa!- Yeah.
0:25:23 > 0:25:30'So, has Roger revved up the renovation or has it broken down and is in need of a jump start?
0:25:34 > 0:25:37'Four months later, we're back to find out.
0:25:37 > 0:25:43'Not much change outside, but let's head on in to see what's happening inside.
0:25:49 > 0:25:53'The once tired and tatty rear sitting room and kitchen
0:25:53 > 0:25:57'is now a stylish living room and kitchen area.'
0:25:59 > 0:26:03I think a good kitchen is worth having and worth spending the money on.
0:26:03 > 0:26:07But I was very careful where I sourced the units from and so on,
0:26:07 > 0:26:11and I've made some great savings on the internet with that.
0:26:15 > 0:26:18'Roger has maximised the space in the living area
0:26:18 > 0:26:20'by removing the chimney breast.
0:26:20 > 0:26:23'Let's take a look upstairs.
0:26:25 > 0:26:30'The two drab and dreary bedrooms are now bright and bold.
0:26:31 > 0:26:36'In the front bedroom, I uncovered a wonderful Victorian fireplace
0:26:36 > 0:26:42'which I felt, once restored, would make a fantastic period feature.
0:26:42 > 0:26:44'I'm sorry to see it's gone.
0:26:44 > 0:26:49'But although Roger did attempt to revive the fireplace, he found it beyond repair.
0:26:51 > 0:26:54'Let's see what he's been up to in the bathroom.
0:26:57 > 0:27:01'Roger and his team of builders have worked wonders.
0:27:01 > 0:27:06'They have managed to find room not only for a full-size bath but a shower cubicle, as well.
0:27:06 > 0:27:11We turned the bath round, put it under the window
0:27:11 > 0:27:15and so that allowed us to have a corner shower unit and the wash basin.
0:27:15 > 0:27:19Again, looking round, searching for prices,
0:27:19 > 0:27:21I got a cracking deal on those.
0:27:22 > 0:27:25'Roger likes a bargain but he's not a penny pincher.
0:27:25 > 0:27:30'He's been good to himself and his new home by buying quality.
0:27:30 > 0:27:34'So has he managed to stick to his £30,000 budget?'
0:27:34 > 0:27:40I spent more than my budget. I'm about £4,000 over the original cost.
0:27:40 > 0:27:44But it's because we've done things properly, I think,
0:27:44 > 0:27:48and I'm going to live in it, so nobody's to blame but me.
0:27:49 > 0:27:53# Be good to yourself
0:27:53 > 0:27:56# When nobody else will
0:27:56 > 0:28:01'In the downstairs front reception room, work is ongoing,
0:28:01 > 0:28:04'but the rotten floor has been replaced.
0:28:04 > 0:28:07'As I discovered, this was caused by dry rot in the cellar.'
0:28:10 > 0:28:14The joists are absolutely rotten.
0:28:16 > 0:28:22'Roger has treated the dry rot and also carried out major structural work.
0:28:22 > 0:28:26'A supporting wall was knocked down and replaced by a support beam
0:28:26 > 0:28:31'and he has dug down to give an extra seven inches of floor-to-ceiling height.
0:28:31 > 0:28:35'But never mind all that, when does the model car racing track get fitted?'
0:28:35 > 0:28:38My youngest son wants a gambling den down there.
0:28:38 > 0:28:41He has his four friends that he plays poker with.
0:28:41 > 0:28:44'Oh, no! Where will the racing track go?'
0:28:44 > 0:28:47The Scaletrix track will go up in the roof.
0:28:47 > 0:28:50We're going to board the floor out, build studded walls
0:28:50 > 0:28:52and make that a self-contained room.
0:28:52 > 0:28:56'So a poker table in the basement and racing cars in the loft.
0:28:56 > 0:28:58'Fantastic!'
0:28:59 > 0:29:03'Roger is three weeks behind with his three-month schedule
0:29:03 > 0:29:08'and has spent £102,000 so far buying and renovating this place.
0:29:11 > 0:29:14'We inviting two local property experts
0:29:14 > 0:29:16'to give us their opinion on Roger's home.
0:29:16 > 0:29:23'Let's begin by finding out what the auctioneer who sold it thinks of its transformation.'
0:29:23 > 0:29:26It's a delight to come through the door of a house you've seen before.
0:29:26 > 0:29:30You're intrigued to see what's changed. This is quite impressive.
0:29:30 > 0:29:36It's interesting because, in this instance, he's doing it for his own occupation rather than to rent out
0:29:36 > 0:29:42or to sell on, and therefore I think you give a lot more attention to detail and quality.
0:29:44 > 0:29:47First impressions of the property are fantastic.
0:29:47 > 0:29:51I like the use of space in the kitchen and dining area.
0:29:51 > 0:29:57Taking out the party wall and having it open-plan means it's a more useable space.
0:29:59 > 0:30:04The bathroom's very impressive. It's quite amazing what you can get into a small space.
0:30:04 > 0:30:08A standard four-piece suite, and including a large bath,
0:30:08 > 0:30:12I think is almost bordering on the miraculous, but it's really good.
0:30:12 > 0:30:15'So the experts are impressed.
0:30:15 > 0:30:18'This super-stylish and contemporary home
0:30:18 > 0:30:24'is undoubtedly worth a great deal more than the £68,000 Roger paid for it at auction.
0:30:24 > 0:30:31'He spent £34,000 on the renovation, meaning a total outlay of £102,000 so far.
0:30:31 > 0:30:35'So has he crashed through the ceiling price for property in the area?'
0:30:35 > 0:30:41In terms of resale value, sensibly I think you'd put this on the market at about £105,000.
0:30:41 > 0:30:47I would expect to achieve a sale price of around £107,000 to £110,000.
0:30:47 > 0:30:50That's what I was hoping for, to be quite honest,
0:30:50 > 0:30:53because that means I'd get my money back and a little bit of profit.
0:30:53 > 0:30:58So I'm happy with that. The 110 one would be nice.
0:30:58 > 0:31:01But, yeah, that's fine, I'm pleased with that.
0:31:01 > 0:31:07'It's been a pleasure to see so much hard work and heart and soul
0:31:07 > 0:31:09'poured into the place to make it a home.
0:31:09 > 0:31:14'And it appears that Roger's neighbours have taken an interest in his renovation.'
0:31:14 > 0:31:19As people say, a terraced house is a terraced house. It's what's inside it.
0:31:19 > 0:31:23A lot of people in the street have been really pleased that I'm actually going to live in it
0:31:23 > 0:31:27and it's not going to be rented out to students.
0:31:27 > 0:31:32And a lot of people, the neighbours, are dying to get inside here.
0:31:32 > 0:31:35But they're not coming in till it's finished.
0:31:43 > 0:31:47'I'm in Catford in the borough of Lewisham, Southeast London.
0:31:47 > 0:31:51'And just as the name would suggest, on Catford high street
0:31:51 > 0:31:57'there's a giant cat over the entrance to the shopping centre built in 1974.
0:31:57 > 0:32:01'The area has experienced a lot of rebuilding in the 1960s
0:32:01 > 0:32:05'and the 1990s, and with all this development, it's a busy place.
0:32:05 > 0:32:10'So, for finding a bargain, could it be the purr-fect location?'
0:32:10 > 0:32:15The property I'm here to see is certainly great for transport connections.
0:32:15 > 0:32:20You've got a train station there about three minutes' walk, that'll take you into central London.
0:32:20 > 0:32:26Five minutes from the town centre. However, this is a very busy main road,
0:32:26 > 0:32:30so I wonder if that will put people off, because this is what I'm here to see,
0:32:30 > 0:32:32or rather, a flat in this building.
0:32:34 > 0:32:39'That main road is just off the busy South Circular so it's no wonder it's hectic.
0:32:39 > 0:32:43'The flat itself is a one-bed that came guided at £80,000.
0:32:43 > 0:32:49'Unfortunately, it's up three flights of stairs. Yep, right up there.'
0:32:49 > 0:32:53Whoo! Well, climbing up all those stairs will certainly keep you fit.
0:32:53 > 0:32:56This is a top-floor flat, of course,
0:32:56 > 0:33:01but in this instance, I think that's not a bad thing cos you are furthest away from the road and the noise.
0:33:01 > 0:33:05So up this final set of stairs into this little kind of lobby area.
0:33:05 > 0:33:08Faced with a wall, which is a bit of a strange old layout,
0:33:08 > 0:33:12and then something quite unusual, because for a one-bedroom flat,
0:33:12 > 0:33:15you would expect a fairly small kitchen, but not in this instance.
0:33:15 > 0:33:19It's actually quite a nice sized space.
0:33:19 > 0:33:22It's tired and it needs sorting out, but you've got the room to do it.
0:33:22 > 0:33:25And reasonable head height, as well.
0:33:25 > 0:33:28So, spend a bit of money on this and you will transform this little area.
0:33:28 > 0:33:33I wonder if there's anything you can do to get rid of that wall.
0:33:35 > 0:33:40It is only a stud partition, which is good news, so it wouldn't be too much effort to take it out.
0:33:40 > 0:33:43However, the thing I did notice, it's got electric light switches,
0:33:43 > 0:33:46and worse than that, it's got the main fuse board,
0:33:46 > 0:33:50and that'll be where the main electricity supply comes into the flat.
0:33:50 > 0:33:54So that could be quite expensive to get rid of.
0:33:54 > 0:33:58Worth doing though, I think, cos it would really open up this area.
0:33:58 > 0:34:02Actually, for a one-bedroom flat, this is pretty spacious.
0:34:02 > 0:34:06This is your main living room area. Two windows, lots of light flooding in,
0:34:06 > 0:34:11reasonably high ceilings, a bit of detail from the fact that you're in the attic of the building.
0:34:11 > 0:34:16Yeah, it's a good size space. Let's see if it carries on.
0:34:16 > 0:34:20'So, the flat's relatively spacious, light and airy
0:34:20 > 0:34:25'and the short commute into London City Centre is undoubtedly a selling point.'
0:34:26 > 0:34:31Back into the little foyer area and you've got your loo there.
0:34:31 > 0:34:34Bit of a shame because it isn't in that good a condition.
0:34:34 > 0:34:37I'm wondering if there's any way of maybe increasing the size
0:34:37 > 0:34:42by changing the position of that stud partition wall to create a slightly bigger toilet and loo.
0:34:42 > 0:34:45That needs some attention. Then through into the one bedroom.
0:34:45 > 0:34:51It's on the front of the property so I might be susceptible to noise from that road,
0:34:51 > 0:34:55but being on the top floor, that is mitigated slightly. Not a bad size.
0:34:55 > 0:34:58To sum up, it's a likeable little one-bedroom flat.
0:35:00 > 0:35:04'If you get the bathroom sorted and you redecorate and refurbish those rooms,
0:35:04 > 0:35:10'at that guide price of £80,000, this flat really has got something going for it.
0:35:10 > 0:35:15'And it doesn't end there. It comes with a decent size patch of garden out the back
0:35:15 > 0:35:17'and down the lane at the side of the house.
0:35:17 > 0:35:20'It doesn't look like it's seen a lawnmower for some time.
0:35:20 > 0:35:22'Still, it's definitely a bonus.'
0:35:22 > 0:35:25# It's you and me
0:35:25 > 0:35:30# We just lay down in the garden
0:35:32 > 0:35:36'But has it got what it takes to impress Catford's property market?
0:35:36 > 0:35:43'I asked along a local estate agent to give us his thoughts on this one-bedroom flat.'
0:35:43 > 0:35:46First impressions, the overall building is very attractive.
0:35:46 > 0:35:48The flat itself is a good size.
0:35:48 > 0:35:51Obviously need a bit of TLC
0:35:51 > 0:35:54but once it's done, it'll attract a lot of attention.
0:35:55 > 0:36:00The convenient thing with this property is it also benefits from a garden, a massive selling feature.
0:36:00 > 0:36:04The fact that you can have some outside space will make it very saleable.
0:36:04 > 0:36:10'So, at around that £80,000 guide price, how could this add up?'
0:36:10 > 0:36:15I believe the resale, once it's renovated, will be in the region of £150,000.
0:36:15 > 0:36:18'And the rental figures?'
0:36:18 > 0:36:23Once the property's been renovated, I anticipate a rental income of around £750 per calendar month.
0:36:26 > 0:36:31What do you think, for £80,000 as a guide price, this one-bedroom flat?
0:36:31 > 0:36:35Well, good connections, bit of a noisy main road, doesn't need much work doing to it.
0:36:35 > 0:36:40All in all, I think it's a great one to go for. Let's see who agreed when it went under the hammer.
0:36:43 > 0:36:45Lot 28. Who'd like to start?
0:36:46 > 0:36:4950,000. I'll take it, you're bidding. 50,000.
0:36:49 > 0:36:5355 anywhere? 55. 60.
0:36:53 > 0:36:5660. 65.
0:36:56 > 0:37:0270. 75 at the back. 75 elsewhere?
0:37:02 > 0:37:0475, new spot. 80.
0:37:04 > 0:37:0780. 81.
0:37:07 > 0:37:1182. Back to you at £81,000.
0:37:11 > 0:37:1482, new spot.
0:37:14 > 0:37:1883. 84. 85.
0:37:18 > 0:37:2386. 85 in the room. Looking for 86.
0:37:23 > 0:37:25If not, 85 on my left.
0:37:25 > 0:37:28First time. Second time.
0:37:28 > 0:37:3086 at the back.
0:37:30 > 0:37:3387. 88.
0:37:34 > 0:37:3789. 90.
0:37:37 > 0:37:4189 on... 90, yes. 91.
0:37:41 > 0:37:4492.
0:37:44 > 0:37:4891 on my left. First time. Second time. Third and last time, if you're all done.
0:37:48 > 0:37:52- HAMMER BANGS - Sold, 91,000.
0:37:52 > 0:37:57'The successful bidder was Peter, who snapped up the lot for £91,000.
0:37:57 > 0:38:01'He's a building surveyor who spotted the potential of this little flat.
0:38:01 > 0:38:05'I met him back at his purchase to find out more.'
0:38:05 > 0:38:09- Peter, lovely to meet you. - Nice to meet you, too. - Congratulations.- Thank you.
0:38:09 > 0:38:11Nice little flat. Tell me why you wanted to buy it.
0:38:11 > 0:38:16Well, I know the area cos I travel through here to get to work,
0:38:16 > 0:38:20so I know it fairly well and I looked at the auction catalogue
0:38:20 > 0:38:24and it looked fairly cheap so I thought I'd go along and have a look at it
0:38:24 > 0:38:28- and give it a go to try and buy it. - Right. So why have you bought it?
0:38:28 > 0:38:32I'm looking for an investment, really, so looking to do it up
0:38:32 > 0:38:35and then hopefully sell it. If that's not possible
0:38:35 > 0:38:40or not feasible, then I'll probably look to let it out.
0:38:40 > 0:38:45- You're a building surveyor.- Yes, that's right.- That sounds like an ideal job to do what you're doing.
0:38:45 > 0:38:50It is useful, yeah. We don't do the regular building surveying valuations and things like this,
0:38:50 > 0:38:55we do project work, so we renovate whole estates on a grand scale.
0:38:55 > 0:39:02- What kind of thing? - The Decent Homes scheme, which is run at the moment by the government,
0:39:02 > 0:39:06renovating run-down estates and estates which need regeneration.
0:39:06 > 0:39:08Internally, kitchens and bathrooms,
0:39:08 > 0:39:12externally, the fabric of blocks of buildings.
0:39:12 > 0:39:19- Is this the first time you're doing something like this for yourself? - Yes. So I'm a little bit nervous.
0:39:19 > 0:39:24Now it's my money I'm spending, so I'm going to have to be a little bit more careful and do it property,
0:39:24 > 0:39:27so I'm putting my neck on the block and giving it a go.
0:39:27 > 0:39:30'Peter may be putting his head on the block here,
0:39:30 > 0:39:34'but I reckon that with his experience, he won't be losing his head about what to do.
0:39:34 > 0:39:37# Where's your head at?
0:39:37 > 0:39:42'So, what plans does he have to execute a good renovation?'
0:39:42 > 0:39:48Well, really, it's not too bad. So kitchen and bathroom definitely need doing
0:39:48 > 0:39:52and lots of woodchip wallpaper everywhere, on the ceiling, as well,
0:39:52 > 0:39:57which is going to be a nightmare, but I'm going to get a steamer this afternoon and get started.
0:39:57 > 0:40:01So there could be a lot of skimming and plastering once that comes off.
0:40:01 > 0:40:05- Why are you taking it off? - Well, I just don't like it.
0:40:05 > 0:40:08- I can't stand it. - Is the house for you?- No.- Right.
0:40:08 > 0:40:12But if I'm going to sell it, I want it to look decent.
0:40:12 > 0:40:15- Have you ever tried to strip this stuff?- No, I haven't.
0:40:15 > 0:40:20Think as bad as it could possibly be. I guarantee, in an afternoon, you'll clear a square metre.
0:40:20 > 0:40:23- Really?- It's a nightmare. It's there for life.
0:40:23 > 0:40:29- I'll do a square metre, then. - Time it. Set the stop watch. Steamer, forget it.
0:40:29 > 0:40:36'Peter has a generous budget of £10,000 and an equally generous schedule of eight weeks.
0:40:36 > 0:40:40'But with only evenings and weekends to dedicate to the project,
0:40:40 > 0:40:45'that time could disappear quickly, unlike the woodchip.
0:40:45 > 0:40:48'He plans to sell the flat on when the renovation's complete.
0:40:48 > 0:40:54'I reckon this is a sound investment, especially given the bonus he wasn't aware of at first.'
0:40:55 > 0:40:59With the sale, they had an amendment to the auction catalogue
0:40:59 > 0:41:03which said it came with a garden, as well, which I didn't know. That was a real bonus.
0:41:03 > 0:41:09So I checked in the legal pack and it's got the lease with it marked, how much of the garden I've got.
0:41:09 > 0:41:13It's about a quarter of it, cos there's four flats here. It's quite nice.
0:41:13 > 0:41:15- Great. A real bonus. - Yeah, a real surprise.
0:41:15 > 0:41:20- Congratulations. Good luck and we look forward to seeing how you get on.- Thank you.
0:41:21 > 0:41:27So, Peter finally realising that his professional skills can be used to personal use
0:41:27 > 0:41:32in terms of knowing about properties. Building surveyors certainly should.
0:41:32 > 0:41:35How is he going to get on with this place? He seems to have the right ideas
0:41:35 > 0:41:40but will we come back to find a man destroyed from trying to get the woodchip off?
0:41:40 > 0:41:43You can find out later in the show.
0:41:46 > 0:41:49Well, it's been a while since we saw those purchases.
0:41:49 > 0:41:52Have the new owners been racing through the work?
0:41:52 > 0:41:57- Have they been or has everything ground to a complete halt? - Let's go back and find out.
0:42:00 > 0:42:03'Let's return to this vast auction lot in Chelmsford
0:42:03 > 0:42:06'which sat adjacent to a cemetery.
0:42:07 > 0:42:12'It consisted of the cemetery chapel with its vaulted ceilings,
0:42:12 > 0:42:16'magnificent stonemasonry and grand windows,
0:42:16 > 0:42:21'and there was also the cemetery-keeper's lodge and the cemetery waiting room
0:42:21 > 0:42:23'with lovely stained-glass windows.
0:42:28 > 0:42:31'The lodge and chapel are connected by the grand arch cloister
0:42:31 > 0:42:34'and were built in 1886.
0:42:36 > 0:42:39'An extension was added in 1991
0:42:39 > 0:42:43'as a museum for the local archaeological trust.
0:42:43 > 0:42:49'Peter and Ryan purchased all of this at auction for £540,000.
0:42:49 > 0:42:52'They specialise in converting period and listed properties
0:42:52 > 0:42:56'and strive to retain the original character of the buildings they develop.'
0:42:57 > 0:43:02So how far can you go with ripping them apart, taking the windows out?
0:43:02 > 0:43:07- How far can you go?- We don't like to rip out any of the beauty that's already in existence.
0:43:07 > 0:43:12Work with it, enhance it, make it a feature of the property, rather than take the heart out of it.
0:43:13 > 0:43:18'11 months later and we're back to see if this pair's passion for property
0:43:18 > 0:43:22'enabled them, as Ryan said, to keep the heart of this building.'
0:43:24 > 0:43:28# You keep my heart alive
0:43:34 > 0:43:36'Let's begin with what was once the museum,
0:43:36 > 0:43:40'where Peter and Ryan planned to create five two-bedroom cottages.
0:43:43 > 0:43:47'The ground floor's an open-plan living and kitchen area
0:43:47 > 0:43:50'and the French doors flood the room with natural light.
0:43:53 > 0:43:59'A brushed-steel handrail and glass up the staircase are further stylish additions.'
0:43:59 > 0:44:03Being a listed building contractor, cos that's where our experience comes from,
0:44:03 > 0:44:09he's tried to introduce some contemporary things, like contemporary handrails, glass,
0:44:09 > 0:44:12which it never had before, just to give it some more light.
0:44:12 > 0:44:15And light paint and light carpets.
0:44:15 > 0:44:19So we've just tried to give it a bit of a contemporary feel.
0:44:19 > 0:44:23They're quirky buildings, we're making them more liveable and enjoyable.
0:44:26 > 0:44:30'The stairs link to the first floor, where there are two bedrooms and a bathroom.
0:44:30 > 0:44:36'New windows have been added to the building and the light and airy decoration continues.
0:44:38 > 0:44:44'The bathroom has no windows, but its all-white finish gives the impression of space.
0:44:46 > 0:44:49'And in a change to the original plans,
0:44:49 > 0:44:52'Peter and Ryan have added a second floor.
0:44:52 > 0:44:56'The master bedroom has a staircase which leads to a dressing area
0:44:56 > 0:44:58'and an en suite shower room.
0:44:58 > 0:45:02'Each of the five cottages has the same floor plan
0:45:02 > 0:45:05'but the pair put these properties on the market at the design stage,
0:45:05 > 0:45:09'which allowed potential purchasers options on finishes.'
0:45:09 > 0:45:14We were able to give customers the choices of ranges of kitchens,
0:45:14 > 0:45:17carpets, tiles, white goods, et cetera.
0:45:17 > 0:45:23It gives the purchasers coming in more chance to bespoke their own property.
0:45:23 > 0:45:27That's what happened here and we got a lot better response from people coming to look at it.
0:45:29 > 0:45:32'They certainly did get a good response.
0:45:32 > 0:45:35'In fact, all five cottages are already sold.'
0:45:36 > 0:45:42We knew if we kept a good standard of work, that would set us aside from other developers.
0:45:42 > 0:45:48We've done them a little bit better. The quality of workmanship shows. Quite surprised how quick they sold.
0:45:54 > 0:45:58'On now to what was previously the cemetery-keeper's lodge.
0:46:03 > 0:46:06'Peter and Ryan have created a modern three-bedroom house
0:46:06 > 0:46:09'within this Victorian property.
0:46:12 > 0:46:15'The mix of contemporary and period styles
0:46:15 > 0:46:18'sit sympathetically side by side
0:46:18 > 0:46:23'with the seemingly contradictory styles enhancing the beauty here.'
0:46:24 > 0:46:27We've tried to keep as many original features as we can
0:46:27 > 0:46:30so we can just enhance the beautiful character of the building.
0:46:31 > 0:46:37'The cemetery waiting room is being converted into a one-bedroom duplex apartment.
0:46:41 > 0:46:45'They've achieved this by extending into the roof space
0:46:45 > 0:46:48'to create a bedroom and a bathroom.
0:46:51 > 0:46:55'By extending into the cloister, they've created a kitchen.
0:46:55 > 0:46:59'This is undoubtedly a clever use of space,
0:46:59 > 0:47:05'but I feel the extension has diminished the once spectacular archway and stained-glass windows.
0:47:07 > 0:47:11'However, as with the two-bedroom cottages and the lodge,
0:47:11 > 0:47:14'they have already sold this apartment.
0:47:15 > 0:47:18'Peter and Ryan are 11 months into this development
0:47:18 > 0:47:21'and had hoped to be further ahead at this stage.'
0:47:22 > 0:47:25We set a timescale to do it and we've got slightly out of that
0:47:25 > 0:47:28because we applied for some additional planning
0:47:28 > 0:47:31and that held the scheme back from where we were going.
0:47:31 > 0:47:37So we're probably two to three months over where we wanted to be.
0:47:38 > 0:47:42'This delay is most noticeable in the chapel,
0:47:42 > 0:47:46'which is being converted into two one-bedroom duplex apartments.
0:47:53 > 0:47:56'The stained-glass windows have been beautifully restored
0:47:56 > 0:47:59'and the high vaulted ceilings have been retained.
0:48:00 > 0:48:04'I think Peter and Ryan are doing a particularly good job on these apartments,
0:48:04 > 0:48:07'both of which have already been sold from plan.
0:48:09 > 0:48:15'The original budget for this project was between £500,000 and £600,000
0:48:15 > 0:48:20'but now, including their £540,000 purchase price,
0:48:20 > 0:48:24'they estimate they've spent closer to £1.5 million.
0:48:31 > 0:48:34'Let's find out from two local estate agents
0:48:34 > 0:48:37'what they believe the value of each of the properties to be
0:48:37 > 0:48:40'and how much Peter and Ryan actually sold them for.'
0:48:41 > 0:48:46It's really contemporary inside now, so what they've done with the character is really good.
0:48:46 > 0:48:49The way that it's been developed is the correct amount of units
0:48:49 > 0:48:53and the correct amount of different styles of property.
0:48:53 > 0:48:55I think they've done a really good job.
0:48:55 > 0:48:59They've embraced the building. It's got a lot of character.
0:48:59 > 0:49:03The finishes are high-end, good quality kitchens and ceramics,
0:49:03 > 0:49:06all these little things that make it stand out.
0:49:06 > 0:49:11'What do the estate agents estimate the sale value of the two-bedroom cottages to be?'
0:49:12 > 0:49:17The resale values for these would range from £210,000
0:49:17 > 0:49:19up to £225,000.
0:49:19 > 0:49:25The two-beds, I would expect to get anywhere between 210 and 225.
0:49:25 > 0:49:31Yeah. Obviously, each one of them is slightly different, but for that sort of level,
0:49:31 > 0:49:36that's where we wanted to be in the beginning and that's where we've ended, so we're happy.
0:49:38 > 0:49:41'And the three one-bedroom duplex apartments,
0:49:41 > 0:49:45'two in the chapel and one in the former cemetery waiting room.'
0:49:45 > 0:49:53I think the one-bedroom duplex apartments would range from £150,000 up to £160,000.
0:49:53 > 0:49:58I would put the one-bedroom units on the market between £150,000 and £160,000.
0:49:58 > 0:50:01Yeah, we achieved on that. And that's what we sold them for.
0:50:01 > 0:50:03So we're quite happy with that. Very good.
0:50:03 > 0:50:09'Good going so far. So, lastly, the three-bedroom house.'
0:50:09 > 0:50:13The resale value for the three-bedroom house would be £300,000.
0:50:13 > 0:50:18I would put the three-bedroom house on the market between £280,000 and £300,000.
0:50:18 > 0:50:25- We got a couple of quid under the 300, so we're quite happy with that one.- Yeah.- Yeah, very good.
0:50:26 > 0:50:33'That's a combined total sell-on value of between £1,800,000
0:50:33 > 0:50:37'and £1,905,000.
0:50:37 > 0:50:42'That gives Peter and Ryan an estimated pre-tax profit
0:50:42 > 0:50:46'of between £300,000 and £405,000.
0:50:46 > 0:50:50'This property developing duo thrive on a challenge
0:50:50 > 0:50:52'so what's next on the horizon for them?'
0:50:53 > 0:50:56We don't want to do just straight boxes for anybody.
0:50:56 > 0:50:59We'd rather have something quirkier, much more interesting.
0:50:59 > 0:51:01It's been enjoyable, it's been fun to do.
0:51:01 > 0:51:08It's not been a hair-puller, it's been really good, can't ask for a better project, really.
0:51:08 > 0:51:12# Keep my heart alive
0:51:17 > 0:51:23'We're back in Catford, Southeast London now to catch up with Peter
0:51:23 > 0:51:27'who bought this one-bed flat for £91,000.
0:51:27 > 0:51:32'He's a building surveyor by profession, but this is his first solo project.
0:51:32 > 0:51:36'The idea was to renovate and sell this property quickly,
0:51:36 > 0:51:40'although his plan to remove the woodchip wallpaper was an ambitious one.'
0:51:40 > 0:51:44- I just don't like it.- Have you ever tried to strip this stuff? - No, I haven't.
0:51:44 > 0:51:46Think as bad as it could possibly be.
0:51:49 > 0:51:53'Peter set himself a schedule of eight weeks to get the work done.
0:51:53 > 0:51:58'So, two months later, we return to find out whether removing that woodchip wallpaper
0:51:58 > 0:52:00'also stripped him of his enthusiasm.'
0:52:07 > 0:52:11'Well, on first impressions, it looks like Peter's done a good job.
0:52:11 > 0:52:14'The flat's been redecorated and recarpeted
0:52:14 > 0:52:18'and he's also given the kitchen some serious attention.'
0:52:20 > 0:52:25OK, in the kitchen, we've completely replaced all the units in here,
0:52:25 > 0:52:27just totally redesigned it, as well.
0:52:27 > 0:52:30So we've actually swapped the sink with the oven
0:52:30 > 0:52:34cos I wanted a little bit of worktop by the side of the oven and also the sink,
0:52:34 > 0:52:37so you can stack your dishes and stuff before you wash up.
0:52:37 > 0:52:42And also put units on this side, as well, just to give some extra storage space
0:52:42 > 0:52:47and just give a bit of a galley style to the kitchen, which I think works well.
0:52:49 > 0:52:52'The bathroom is looking great.
0:52:52 > 0:52:55'Peter used larger tiles to create a more spacious feel
0:52:55 > 0:52:59'and it's now the perfect place to have a relaxing soak.
0:53:00 > 0:53:05'Not so relaxing was the prospect of removing that woodchip wallpaper.'
0:53:08 > 0:53:10Removing the woodchip wallpaper was a bit of an issue
0:53:10 > 0:53:14because, as Martin said, it was going to be a bit of a problem.
0:53:14 > 0:53:19We did remove it in the kitchen because I had to replace the whole thing, and the bathroom.
0:53:19 > 0:53:24All that was taken down. We kept the woodchip wallpaper and just painted and freshened it up.
0:53:24 > 0:53:28'So Peter did listen to my advice after all.
0:53:28 > 0:53:31'And the woodchip which he hasn't stripped away, he's painted.
0:53:31 > 0:53:34'That has given the flat a fresh feeling.'
0:53:34 > 0:53:37# Old paint is peeling
0:53:37 > 0:53:41# This is that fresh, that fresh feeling
0:53:41 > 0:53:44'But fresh wasn't exactly how Peter felt
0:53:44 > 0:53:47'when combining his day job with renovating the flat.'
0:53:47 > 0:53:53Grabbing weekends and evenings sounds like a good idea but it is actually very tiring.
0:53:53 > 0:53:57But it's something that I was prepared to do, and I'd be prepared to do it again,
0:53:57 > 0:54:02so I was happy with it, but a lot harder work than I initially thought.
0:54:02 > 0:54:06'It's been hard graft, but Peter's done a grand job
0:54:06 > 0:54:10'ensuring the flat was ready to rent within his eight-week schedule.
0:54:10 > 0:54:14'But did he make any savings on his ten grand budget?'
0:54:14 > 0:54:19I think renovating the actual flat is going to come in round about £5,000 to £6,000.
0:54:19 > 0:54:23But I was quite fortunate because the boiler didn't need changing.
0:54:23 > 0:54:28And most of the electrics were OK. Only the bathroom and the kitchen needed rewiring.
0:54:28 > 0:54:33- I had a few savings there. - 'Even including legal fees and mortgage repayments,
0:54:33 > 0:54:38'Peter's total outlay is still under £100,000.
0:54:38 > 0:54:42'So does he plan to sell or rent it out?'
0:54:42 > 0:54:46I want to sell it. I want to get rid of it, move on to the next one.
0:54:46 > 0:54:53But if I have to rent, then I'll do that, so it depends on the valuations.
0:54:56 > 0:55:00'Here are some experts to help Peter make up his mind.
0:55:00 > 0:55:04'We asked two local estate agents to tell us whether Peter's investment will pay off.'
0:55:07 > 0:55:10The property, compared to what it was like last time,
0:55:10 > 0:55:14massive transformation. Before, it needed everything doing,
0:55:14 > 0:55:17and he's replaced everything that needed to be done.
0:55:17 > 0:55:20The standard of finish could've been a little bit better in places.
0:55:20 > 0:55:23But the kitchen and bathroom more than makes up for that.
0:55:23 > 0:55:27'The flat seems to get the thumbs-up from the estate agents.
0:55:27 > 0:55:30'So what could a resale achieve?'
0:55:30 > 0:55:34I believe the property would resale for £150,000.
0:55:34 > 0:55:37This property could resale for £150,000.
0:55:37 > 0:55:41Wow! 150,000. That's very good.
0:55:41 > 0:55:46That's a lot more than I thought it was going to be, so I'm very, very pleased with that.
0:55:46 > 0:55:49'On his first attempt at property developing,
0:55:49 > 0:55:52'Peter could make a pre-tax profit of around £50,000.
0:55:52 > 0:55:56'So I reckon that's helped make up his mind here.'
0:55:56 > 0:56:01In terms of selling it, yeah, I'm definitely going to be looking to do that first.
0:56:01 > 0:56:04I'll probably take an offer of something reasonable on that
0:56:04 > 0:56:07and move on and hopefully get onto the next one as soon as possible.
0:56:07 > 0:56:13'But even if Peter sticks with the flat, the estate agents reckon he could make a rental income
0:56:13 > 0:56:16'of up to £775 per calendar month.
0:56:16 > 0:56:20'That would give him a possible annual yield of over nine percent.
0:56:20 > 0:56:23'You won't earn that from any high street bank.
0:56:23 > 0:56:27'After the sale of this flat, he plans to get another small apartment to renovate
0:56:27 > 0:56:32'and the success of this one means he's going back to you-know-where.'
0:56:32 > 0:56:37I'll definitely buy property at auction again. I found the whole thing really exciting on the day
0:56:37 > 0:56:44and you can sometimes get a bit of a bargain, hopefully. I'll definitely do it again.
0:56:46 > 0:56:49The world of property is never static or boring.
0:56:49 > 0:56:52You need to know what you're doing. And we can help with that.
0:56:52 > 0:56:57So join us next time for more cautionary tales and success stories from the nation's auction rooms
0:56:57 > 0:57:00- on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:02 > 0:57:06Subtitles by Red Bee Media Ltd
0:57:06 > 0:57:10E-mail subtitling@bbc.co.uk
0:57:10 > 0:57:10.