0:00:02 > 0:00:05- Hello and welcome to the programme. - We all know that the value of houses
0:00:05 > 0:00:08- can go down as well as up.- So it pays to buy at the right price
0:00:08 > 0:00:10- in the first place. - One way you can do that
0:00:10 > 0:00:13is to buy your next home under the hammer.
0:00:38 > 0:00:44If you're sitting at home thinking you'd like to buy at an auction, now could be a good time to start.
0:00:44 > 0:00:48Yes, the market is always changing so you have to judge when is the best time to buy.
0:00:48 > 0:00:52- Today's buyers have already put their money on the line. - And this is what they bought.
0:00:54 > 0:00:58'This house with kennels in Cheshire could put your budget in the dog house.'
0:00:58 > 0:01:02When you come to restore this place, it's going to start notching up the costs.
0:01:03 > 0:01:07'I find a potential money pit at this London property.'
0:01:07 > 0:01:09If that wasn't enough,
0:01:09 > 0:01:13there's a great big crack on the wall just there.
0:01:14 > 0:01:18'And this magical flat in Lancashire pulls out an extra rabbit.'
0:01:18 > 0:01:21Not only do you get the flat when you buy this particular lot,
0:01:21 > 0:01:24you get the freehold of the building.
0:01:25 > 0:01:29'All these properties have been sold at auction and we'll find out who bought them
0:01:29 > 0:01:32'and what they paid for them when they went under the hammer.
0:01:35 > 0:01:39'I've come to beautiful rural Cheshire.'
0:01:39 > 0:01:43This is the main road linking Nantwich with Stone
0:01:43 > 0:01:45and I'm in a little village called Walgherton.
0:01:45 > 0:01:51Not much here apart from a pub and a few houses and this property that was up for auction.
0:01:51 > 0:01:55It's a former kennels. It's got three quarters of an acre of land.
0:01:55 > 0:01:59Guided £300,000 to £325,000.
0:01:59 > 0:02:02'It certainly sits pretty on this expansive land
0:02:02 > 0:02:06'but there are signs of wear and tear when you get closer,
0:02:06 > 0:02:09'although there's no denying its chocolate-box facade.'
0:02:12 > 0:02:15Well, it's definitely got a very cute front aspect.
0:02:15 > 0:02:19Then straight in through the front door, look at that. I love that little window.
0:02:19 > 0:02:22And then wow! Look at this staircase!
0:02:22 > 0:02:26You would not expect something quite as wide as that in a house like this.
0:02:26 > 0:02:29That's really nice. It goes a bit downhill in this room
0:02:29 > 0:02:33cos you've got another door leading into the dining room. That's a bit strange.
0:02:33 > 0:02:37But then over this side, I guess this is your main living room. Open fires.
0:02:37 > 0:02:41Original features I guess, although not that brilliant.
0:02:41 > 0:02:44But nice to see that you've got some beams there.
0:02:44 > 0:02:47Then through into the kitchen. Cute little farmhouse kitchen.
0:02:47 > 0:02:50Again, you've got your original beams, your range cooker.
0:02:50 > 0:02:53I mean, it needs completely renovating.
0:02:53 > 0:02:56But as layouts go, not a bad one.
0:02:56 > 0:03:00'So, it's a good start layout-wise,
0:03:00 > 0:03:02'despite the fairly poor state of repair.
0:03:02 > 0:03:05'Time to head on up.'
0:03:05 > 0:03:09Sadly, upstairs, the layout starts to go horribly wrong.
0:03:09 > 0:03:12Two good-size double bedrooms, one that side and one over there,
0:03:12 > 0:03:16this tiny box room and a separate loo, but you've got these levels
0:03:16 > 0:03:21and I see these and I think, when you come to restore this place,
0:03:21 > 0:03:25if that's what you wanted to do, it's going to start notching up the costs.
0:03:25 > 0:03:28'Old houses like this can present enormous problems.
0:03:28 > 0:03:33'Rectifying them can cost serious money so novices beware.
0:03:33 > 0:03:36'Unless you know what you're doing and have the money to do it,
0:03:36 > 0:03:40'this rather dog-eared former kennels house is probably one to avoid.'
0:03:40 > 0:03:46Down here in the old kennels, you can really see that this place is currently a Heinz 57 mutt.
0:03:46 > 0:03:49What it needs is someone with the tenacity of a Rottweiler
0:03:49 > 0:03:54and the saving characteristics of a St Bernard to take it on.
0:03:54 > 0:03:56# Who let the dogs out?
0:03:58 > 0:04:01# Who let the dogs out?
0:04:01 > 0:04:07'It's definitely a dog-tired old property and may hound a new owner but there's potential.'
0:04:07 > 0:04:12So, what could you do with this place? Well, I suppose one option would be to look at extending it
0:04:12 > 0:04:16if you needed a bigger home. Or my preferred option, although I hate to say it,
0:04:16 > 0:04:20knock it down perhaps. Could you? Maybe? Even that staircase?
0:04:22 > 0:04:23Yeah.
0:04:23 > 0:04:26# There's got to be a better way
0:04:26 > 0:04:28# Tear it down
0:04:29 > 0:04:34'OK, I can hear your gasp of horror. Knocking it down does seem drastic.
0:04:34 > 0:04:38'But this could turn into a real money pit if the new owner isn't careful.
0:04:38 > 0:04:43'You could just take a sideways step and increase its footprint with an extension.
0:04:43 > 0:04:46'My property developer's head says no way!
0:04:46 > 0:04:49'With a guide price of £300,000 to £325,000
0:04:49 > 0:04:53'let's hear what a local estate agent makes of this tired cottage.'
0:04:53 > 0:04:58I think this property is amazing. I think it's got great prospects
0:04:58 > 0:05:00and it'll make a great family home.
0:05:00 > 0:05:04'That somebody is going to have to be ready for some hard graft.
0:05:04 > 0:05:07'With so much land, the owner will have plenty of options.
0:05:07 > 0:05:10'So what's its development potential?'
0:05:10 > 0:05:13The land that's available here is quite a substantial plot.
0:05:13 > 0:05:17It's just under an acre. The property as it stands doesn't really do it justice,
0:05:17 > 0:05:22so I do believe we're looking at either an extension of this existing property
0:05:22 > 0:05:24or complete rebuild.
0:05:24 > 0:05:28- 'Let's talk prices.'- The rental figures per calendar month
0:05:28 > 0:05:30for a property of this size,
0:05:30 > 0:05:34you'd be looking at somewhere in the region of £800 per calendar month.
0:05:34 > 0:05:40If you were to redevelop this property, either by extension or a complete rebuild,
0:05:40 > 0:05:44then you'd be looking at somewhere in the region of £750,000.
0:05:44 > 0:05:46Well, if you're looking for a farmhouse to do up
0:05:46 > 0:05:49and enough land to create yourself a bit of a smallholding,
0:05:49 > 0:05:52you could've found it here just outside Nantwich.
0:05:52 > 0:05:55Let's find out who bought it when it went to the auction.
0:05:59 > 0:06:05This is a former kennels house. It occupies an excellent site in a most attractive rural locality.
0:06:05 > 0:06:07250 I've got. 250 I've got.
0:06:07 > 0:06:10255. 255. At 255.
0:06:10 > 0:06:13260? 260. At 260.
0:06:13 > 0:06:18At 260. And 5. At 265. At 265.
0:06:18 > 0:06:22270. And 5. At 275.
0:06:22 > 0:06:24280. At 280. At 280.
0:06:24 > 0:06:27And 5. At 285.
0:06:27 > 0:06:29290. At 290.
0:06:29 > 0:06:32295. At 295.
0:06:32 > 0:06:35300. At 300. 300. And 5, sir?
0:06:35 > 0:06:39At 305. At 305.
0:06:39 > 0:06:4210. At 310. At 310.
0:06:42 > 0:06:45At 310. 15 now.
0:06:45 > 0:06:47At 310. At 310.
0:06:47 > 0:06:50We'll make it 12 and a half. You can't beat it.
0:06:50 > 0:06:53At 312 and a half. Come on, you'll go for that.
0:06:53 > 0:06:58312 and a half. At 312 and a half. Are we all done?
0:06:58 > 0:07:01At £312,500.
0:07:01 > 0:07:04Again, I'm sorry, it's below my reserve price
0:07:04 > 0:07:09but please stay and have a word with us, we'll see what we can sort out.
0:07:09 > 0:07:13'And have a word is what those determined bidders did
0:07:13 > 0:07:16'when the property didn't reach its reserve.
0:07:16 > 0:07:22'New owners Nigel and Claire stuck to their final offer of £312,500
0:07:22 > 0:07:25'and sealed the deal after the auction.
0:07:25 > 0:07:29'Claire is a teaching assistant and Nigel's an electrical contractor.'
0:07:29 > 0:07:32- Claire, Nigel, lovely to meet you both.- Hi.- Hi.
0:07:32 > 0:07:35- Congratulations.- Thank you. - Why did you want it so much?
0:07:35 > 0:07:38Erm, we could see the potential.
0:07:38 > 0:07:42We only looked at the property seven days prior to the auction.
0:07:42 > 0:07:45We could see the potential. We set our price
0:07:45 > 0:07:49and went to the auction with a complete open mind.
0:07:49 > 0:07:52Tell me more about the plans for it.
0:07:52 > 0:07:57There's many, many things at the moment going round in our heads
0:07:57 > 0:08:02but, obviously, we love the original cottage.
0:08:02 > 0:08:05We want to be able to develop the original cottage
0:08:05 > 0:08:08into a much bigger family home.
0:08:08 > 0:08:12You could pull the whole thing down and start again. Is that an option?
0:08:12 > 0:08:17- No.- No. We want to keep the old building.
0:08:17 > 0:08:22With the local council, it's going to give us a little bit more scope to play with planning
0:08:22 > 0:08:25if we keep the old part of the building up.
0:08:25 > 0:08:29And also, the front of it is so beautiful, that's what we fell in love with.
0:08:29 > 0:08:31It's sort of chocolate-box pretty.
0:08:31 > 0:08:35And it would be such a shame to just bulldoze that down.
0:08:35 > 0:08:38# You're sweet like chocolate, boy
0:08:39 > 0:08:40# Sweet like chocolate
0:08:40 > 0:08:44'So, the sweet Cheshire cottage lives to see another day.
0:08:44 > 0:08:49'Claire and Nigel are unsure about future development on the rest of the relatively large plot,
0:08:49 > 0:08:53'although they are aware of its building potential.
0:08:53 > 0:08:55'What do they plan for the property itself?'
0:08:55 > 0:08:59Do you have a vision of what the house will be when it's finished?
0:08:59 > 0:09:04I have in my head. Nobody else can see it apart from Nige and I at the moment.
0:09:04 > 0:09:07All they see is this little cottage with lots of kennels.
0:09:07 > 0:09:11But we envision the pretty front of the house
0:09:11 > 0:09:15tied in with a huge extension.
0:09:15 > 0:09:18There's going to be lots of light, lots of oak and glass.
0:09:18 > 0:09:21We want it to be a little bit different.
0:09:21 > 0:09:24And the idea is it becomes your family home?
0:09:24 > 0:09:27- Oh, definitely.- How big's the family?
0:09:27 > 0:09:32We have my two children, Lizzie and Will, Nigel's two boys, Alex and Matthew.
0:09:32 > 0:09:36So we're going to need lots of space.
0:09:36 > 0:09:40So where do you live at the moment and what are you going to do?
0:09:40 > 0:09:42We live at the other side of Nantwich
0:09:42 > 0:09:45in a little village called Worleston.
0:09:45 > 0:09:49We live in a barn conversion there, but until we sell that property,
0:09:49 > 0:09:54we will be leaving this just to develop as best we can
0:09:54 > 0:10:00with the limited resources we have at the moment until we can fund it.
0:10:00 > 0:10:07'So the couple can make a start here while their current house, 45 minutes away, is on the market.
0:10:07 > 0:10:11'Once that's sold, they'll live on the site while the work is being done.
0:10:11 > 0:10:17'As Nigel's in the building trade, his own skills and contacts will be invaluable.
0:10:17 > 0:10:19'The couple reckon it could take two years to complete
0:10:19 > 0:10:23'what they hope will be a home with a real wow factor.'
0:10:23 > 0:10:28What about budget for all this? Cos you've got your other house that you haven't sold yet.
0:10:28 > 0:10:31We have a budget in our head
0:10:31 > 0:10:35but, at the moment, until we sell this other property
0:10:35 > 0:10:38and we set it up and we get planning, we'll work everything out.
0:10:38 > 0:10:45In terms of budget, we want to be able to self-finance as much of this as we possibly can.
0:10:45 > 0:10:49How will you divvy up the work? Are you going to get your hands dirty, Claire?
0:10:49 > 0:10:53Definitely, yeah. I already have. Don't mind getting my hands dirty.
0:10:53 > 0:10:57You can't say romance is dead. He bought me a pair of rigger boots last week.
0:10:57 > 0:10:59THEY LAUGH
0:10:59 > 0:11:03- All in all, you're happy with the way things have turned out.- Very.
0:11:03 > 0:11:07- Very, very.- It's exciting. We haven't had much sleep since we bought it.- Really?
0:11:07 > 0:11:13We keep planning. We've had to buy a big block of graph paper cos we keep drawing all the plans. It's exciting.
0:11:13 > 0:11:16Great. I'm delighted for you both. Good luck with it
0:11:16 > 0:11:19- and I look forward to seeing how you get on.- Thank you very much.
0:11:20 > 0:11:24Well, it's seems like Nigel and Claire were destined to own this place
0:11:24 > 0:11:27and they've certainly got some ambitious plans for it.
0:11:27 > 0:11:30It all comes down to planning permission, of course,
0:11:30 > 0:11:34but intrinsically, it looks like the property is saved.
0:11:34 > 0:11:37Join us later in the show to find out how they get on.
0:11:40 > 0:11:43Welcome to New Cross in Southeast London.
0:11:43 > 0:11:46It's an area that's experiencing a real resurgence.
0:11:46 > 0:11:50So what's new about New Cross? Well, the artists are moving in,
0:11:50 > 0:11:56there's galleries popping up all over the place, plus transport links are set to be transformed.
0:11:56 > 0:11:59'The East London line is coming here in 2012
0:11:59 > 0:12:03'and will form part of the wider over-ground orbital network.
0:12:03 > 0:12:08'It will allow travel around the capital by train without having to enter Central London.'
0:12:08 > 0:12:10# The train is coming, baby
0:12:10 > 0:12:13# I said the train is coming now
0:12:13 > 0:12:17And here it is. Now, the guide on this attractive property
0:12:17 > 0:12:20is £235,000.
0:12:20 > 0:12:24Let's have a little look around and see if it's as attractive inside.
0:12:25 > 0:12:30'From the outside, this property, split over three levels, is certainly impressive.
0:12:30 > 0:12:36'There are ornate mouldings round the doorway, the bay window, and it's great to see exposed brickwork.
0:12:36 > 0:12:38'Let's explore inside.'
0:12:38 > 0:12:45This property is divided currently as two flats, one upstairs and this one here on street level.
0:12:45 > 0:12:48There's a sitting room through there, not a bad size.
0:12:48 > 0:12:51And oh, my goodness, the kitchen. Bit of a purple palace.
0:12:51 > 0:12:54And, of course, there's a gaping hole in the ceiling.
0:12:54 > 0:12:58You can actually see the upstairs floorboards poking through.
0:12:58 > 0:13:00So that immediately needs to be looked at.
0:13:00 > 0:13:04And my first impressions are not positive here
0:13:04 > 0:13:08because it feels cramped, it's dark, you've got sloping ceilings here
0:13:08 > 0:13:11and this whole house feels like it's leaning that way.
0:13:11 > 0:13:14And if that wasn't enough,
0:13:14 > 0:13:18there's a great big crack on the wall just there.
0:13:18 > 0:13:21So I'm not loving this place at the moment.
0:13:22 > 0:13:25'This property is cracking up, and in more ways than one.
0:13:25 > 0:13:27'It's been lying empty for a while.
0:13:27 > 0:13:31'There are signs of damp in the front room and the kitchen needs major work.
0:13:31 > 0:13:34'It all just feels a bit neglected
0:13:34 > 0:13:37'and could do with some serious TLC.'
0:13:39 > 0:13:40# Cracking up
0:13:40 > 0:13:42# Like a worn-out shoe
0:13:44 > 0:13:48'On the lower ground floor, the three bedrooms also have signs of damp
0:13:48 > 0:13:52'and desperately need a revamp. There are garden views at the rear
0:13:52 > 0:13:55'although at the moment, if there were any curtains,
0:13:55 > 0:13:59'you'd probably want to keep them shut! What about the one-bedroom flat?'
0:13:59 > 0:14:02So upstairs is the second flat
0:14:02 > 0:14:06and there's a little more of that Victorian character showing through up here.
0:14:06 > 0:14:09You've got original sash windows, nice banisters.
0:14:09 > 0:14:13But unfortunately, there are two things up here that may put you off.
0:14:13 > 0:14:17There's a serious case of damp in that back bedroom
0:14:17 > 0:14:23and a fire-damaged kitchen up there. Sorry to be the bearer of bad news.
0:14:24 > 0:14:30'You could see this as thoroughly depressing. However, although it seems to be falling apart,
0:14:30 > 0:14:36'the bones are here and after some remedial work, this has the makings of a really good flat.
0:14:36 > 0:14:40'Both flats are large and spacious so whilst first impressions are not promising,
0:14:40 > 0:14:43'it may pay to see past all the drudgery.
0:14:45 > 0:14:48'The guide price was set at £235,000.
0:14:48 > 0:14:52'We asked a local estate agent what she made of it.'
0:14:52 > 0:14:54The first impression is it's in a great area,
0:14:54 > 0:14:56a great investment opportunity
0:14:56 > 0:15:00and it has the potential to either keep it as a family home
0:15:00 > 0:15:02or convert it into apartments.
0:15:02 > 0:15:06'If the property was refurbished and sold as flats,
0:15:06 > 0:15:09'how much could they sell for in this area?'
0:15:09 > 0:15:14A one-bedroom in the area is achieving between £160,000 and £170,000.
0:15:14 > 0:15:19A two bedroom would achieve between £200,000 and £220,000.
0:15:19 > 0:15:23And a three-bedroom would achieve close to £230,000, £235,000.
0:15:23 > 0:15:27'That's a significant return. And there's also a strong rental market in New Cross
0:15:27 > 0:15:32'with two-bed flats commanding £850 to £900 a month.'
0:15:32 > 0:15:37With a university round the corner, you will always have a steady stream of tenants
0:15:37 > 0:15:40and improved transport links due for completion next year
0:15:40 > 0:15:43are set to transform this part of London.
0:15:43 > 0:15:46As a result, New Cross is definitely on my property radar.
0:15:46 > 0:15:51But, you know, this house is going to require a lot of work.
0:15:51 > 0:15:55But fire damage and signs of subsidence didn't put someone off.
0:15:55 > 0:15:57Let's go to auction and find out who that was.
0:16:05 > 0:16:09So, invite your bids. 205 standing up, yeah?
0:16:09 > 0:16:12205. 210. 210.
0:16:12 > 0:16:15215. 220.
0:16:15 > 0:16:17225.
0:16:18 > 0:16:20230. 230.
0:16:20 > 0:16:25230. 235, sir? At the back.
0:16:25 > 0:16:27235. 240.
0:16:27 > 0:16:29245. 250.
0:16:31 > 0:16:33250, yeah? 250.
0:16:33 > 0:16:35255.
0:16:35 > 0:16:40251 down here. 252.
0:16:40 > 0:16:42253. 254.
0:16:42 > 0:16:44255. 256
0:16:44 > 0:16:47257. 258.
0:16:47 > 0:16:50259. 260.
0:16:50 > 0:16:52Well done. 261.
0:16:52 > 0:16:54262?
0:16:54 > 0:16:57Have a think. 261. 262, new spot.
0:16:57 > 0:17:00262. 263.
0:17:00 > 0:17:03Yep. 264. 265.
0:17:03 > 0:17:05266. 267.
0:17:05 > 0:17:09268 with you, striped shirt. 268.
0:17:09 > 0:17:11269, back in.
0:17:11 > 0:17:13270. 271.
0:17:13 > 0:17:15272.
0:17:15 > 0:17:18273, sir?
0:17:18 > 0:17:20272 down here.
0:17:20 > 0:17:22First time, second time,
0:17:22 > 0:17:25third and last time if you're all done.
0:17:25 > 0:17:28- HAMMER BANGS - Sold, 272.
0:17:30 > 0:17:34'The successful bid of 272 came from Ishmael.
0:17:34 > 0:17:38'Originally from Turkey, he's lived in London for the past eight years.
0:17:38 > 0:17:40'He has a food import and export business
0:17:40 > 0:17:45'but hopes that one day his part-time property investing will become a full-time career.
0:17:45 > 0:17:48'I met him at his latest purchase to hear his plans.'
0:17:48 > 0:17:53- Ishmael, congratulations. - Thank you.- Are you really excited about having bought this at auction?
0:17:53 > 0:17:57Yes. I think it's going to be challenging for me, but I am excited.
0:17:57 > 0:18:01So now you've had time to take it all in, to have a good look around,
0:18:01 > 0:18:04are you still as excited?
0:18:04 > 0:18:06A little bit worried but still excited.
0:18:06 > 0:18:11- What are you going to do with it? - I'm planning to convert it to three flats,
0:18:11 > 0:18:17one three-bedroom family house with garden as the lower-ground floor
0:18:17 > 0:18:21and the raised ground floor is going to be a one-bedroom flat
0:18:21 > 0:18:25and upstairs, the first floor with loft conversion
0:18:25 > 0:18:27is going to be a two-bedroom flat.
0:18:27 > 0:18:29It depends on the council permission.
0:18:30 > 0:18:34'Wow! I'm impressed. But also a tad concerned.
0:18:34 > 0:18:37'Squeezing three flats with so many bedrooms into this property
0:18:37 > 0:18:42'seems very ambitious, but Ishmael has a clear plan for that.'
0:18:42 > 0:18:46Ishmael, what are you planning to do with this, rent it or sell it once the work's complete?
0:18:46 > 0:18:49First, I want to sell it.
0:18:49 > 0:18:56If I can't, in this area, there is a good rental market.
0:18:56 > 0:19:01'Ishmael hasn't wasted any time doing his research and getting organised.
0:19:01 > 0:19:05'He's contacted the planners and got a verbal green light for conversion to three flats.
0:19:05 > 0:19:08'His architect has drawn up plans for the three-bed flat
0:19:08 > 0:19:11'with an extension on the lower ground-floor,
0:19:11 > 0:19:16'a one-bed on the ground floor and a two-bed maisonette on the top floor and loft space.
0:19:16 > 0:19:19'Ishmael certainly doesn't hang about!'
0:19:19 > 0:19:21# I got ants in my pants and I need to dance
0:19:21 > 0:19:24'And that's just as well.
0:19:24 > 0:19:26'Currently he has three properties that he rents out
0:19:26 > 0:19:30'but he's never faced such a mammoth renovation before.'
0:19:31 > 0:19:35So this really is going to be a very challenging project for you.
0:19:35 > 0:19:37- It's what I want.- You want this?
0:19:37 > 0:19:44- Yes.- Why do you want this? - Because I'm changing my career focus gradually in the property business.
0:19:44 > 0:19:49Because I am doing my import/export business, property was my part-time hobby.
0:19:49 > 0:19:54In the last five months, I decided it's going to be vice-versa.
0:19:54 > 0:19:58The property's going to be my main focus
0:19:58 > 0:20:03and my import/export business is going to be just part-time work.
0:20:03 > 0:20:06And how hands-on are you with work?
0:20:06 > 0:20:10Can you lay flooring? Are you good at tiling? Can you check the electrics?
0:20:10 > 0:20:13How involved are you going to be?
0:20:13 > 0:20:16According to my wife, I am a DIY man
0:20:16 > 0:20:23because I'm doing, in my current house, all the shelving, painting, wallpaper.
0:20:23 > 0:20:28I believe that I can do, not the major work, not the technical gas or electric,
0:20:28 > 0:20:32I wouldn't touch that side because of health and safety, I will not do it myself,
0:20:32 > 0:20:38but I can lay the tiles, I can do the painting, I can do the gardening.
0:20:38 > 0:20:44'It's great to hear he's such a dab hand at DIY as it's a real money-saver.
0:20:44 > 0:20:47'But Ishmael's doing the right thing by getting professionals in
0:20:47 > 0:20:52'for the more specialist jobs, like the electrics. These will definitely need to be checked out
0:20:52 > 0:20:55'given the fire damage in the upstairs kitchen.
0:20:55 > 0:20:58'A bit of good news is that the fire stemmed from the boiler,
0:20:58 > 0:21:02'it wasn't too severe and it didn't affect the structure of the building.
0:21:02 > 0:21:07'OK, let's talk cash, because sorting out this ugly mess will surely cost a pretty penny.
0:21:07 > 0:21:10'He reckons he has about £115,000 available.'
0:21:10 > 0:21:16So what's the profit you hope to walk away with once this is all done?
0:21:16 > 0:21:20I think if there's a 20 percent return, it will be great.
0:21:20 > 0:21:25- And that's if it all works out and goes in your favour and you get the planning permission.- Yes.
0:21:25 > 0:21:30- Ishmael, there's a lot of work to do here but I wish you well. - Thank you.- Nice to meet you.
0:21:31 > 0:21:33Ishmael has his work cut out with this one
0:21:33 > 0:21:37and I'm not sure turning this into three flats is such a good idea.
0:21:37 > 0:21:41But it will give him a fantastic return if it all works out.
0:21:41 > 0:21:46But will he get it past the planners and is there enough square footage to accommodate three flats?
0:21:46 > 0:21:49And that's even with the planned extension.
0:21:49 > 0:21:54You can find out how Ishmael gets on with his biggest project to date later on in the show.
0:21:56 > 0:22:01'Coming up, converting the basement of this Lancashire flat could be well worth it.'
0:22:01 > 0:22:05It could add that value back onto the property, but more than that, it's a lifestyle thing.
0:22:05 > 0:22:09'Has Ishmael been penny-pinching or splashing the cash
0:22:09 > 0:22:12'on his first major development in London?'
0:22:12 > 0:22:15I just got £10,000 over the budget.
0:22:15 > 0:22:19'But first, in Cheshire, Claire and Nigel have settled in.'
0:22:19 > 0:22:23Very, very quickly it just feels like we've been here forever.
0:22:26 > 0:22:29'We're back in Walgherton near Nantwich, Cheshire,
0:22:29 > 0:22:33'where this former kennels house on almost an acre of land
0:22:33 > 0:22:36'sold for £312,500.
0:22:36 > 0:22:41'I met Claire and Nigel who had ambitious dreams for this tired old place.'
0:22:41 > 0:22:45We envision the pretty front of the house
0:22:45 > 0:22:49tied in with a huge extension.
0:22:49 > 0:22:53So there's going to be lots of light, lots of oak and glass.
0:22:53 > 0:22:56We want it to be a little bit different.
0:22:56 > 0:22:59'Have the couple got everything they wished for?
0:22:59 > 0:23:03'Two and a half years later and we've returned.
0:23:03 > 0:23:06'It's not just the seasons that have changed.
0:23:10 > 0:23:14'There's now a huge double-storey extension stretching right across the back
0:23:14 > 0:23:17'which is a sympathetic blend of old and new.
0:23:21 > 0:23:25'There's a stylish and ultra-modern kitchen-dining-living room area.
0:23:25 > 0:23:29'Two sets of French doors allow in plenty of light
0:23:29 > 0:23:32'whilst also giving easy access to the garden.
0:23:33 > 0:23:36'The frontage has been beautifully restored
0:23:36 > 0:23:41'and whilst it retains its cottage feel, inside it feels like new.
0:23:41 > 0:23:46'The former dining room at the front has been converted into a cosy study.
0:23:46 > 0:23:51'Whilst the formerly bare and bereft living room has been lovingly refurbished
0:23:51 > 0:23:55'with this beautiful brick fireplace as a focal point.'
0:23:55 > 0:23:59This is the old part of the house and this is now the snug.
0:23:59 > 0:24:01It was the original lounge in the old house.
0:24:01 > 0:24:06There was an old fireplace in there. We've replaced it now with a log-burning stove
0:24:06 > 0:24:10We've got under-floor heating in here and it is the cosiest room in the house.
0:24:14 > 0:24:17'Upstairs, they've remedied the issue of the different floor levels
0:24:17 > 0:24:21'and created a beautiful master bedroom.
0:24:22 > 0:24:24'With luxurious en suite.
0:24:27 > 0:24:30'The box room is now a gorgeous single guest room.
0:24:32 > 0:24:34'Also en suite.
0:24:34 > 0:24:40'The layout changes and extension have allowed for an extra bedroom to be created.
0:24:40 > 0:24:42'There are now two large double bedrooms
0:24:42 > 0:24:47'with a shared Jack and Jill bathroom for Claire's children, Lizzie and Will.
0:24:47 > 0:24:51'As a reward for their hard work, they've chosen their own decor.'
0:24:51 > 0:24:54Virtually from the plan, they chose which rooms they would like
0:24:54 > 0:24:57and then as the rooms began to take shape,
0:24:57 > 0:25:02they decided what colour scheme they'd like and what beds they'd like, et cetera,
0:25:02 > 0:25:07and then Will decided that he'd like to have a graffiti artist decorate his room,
0:25:07 > 0:25:10so we phoned a great guy that came and did that.
0:25:10 > 0:25:17And Lizzie has found all different wallpaper samples and fabric samples
0:25:17 > 0:25:21and designed herself a lovely room and they're both well deserved.
0:25:21 > 0:25:24They've been great and worked really hard.
0:25:25 > 0:25:28'In fact, all of them really put their backs into this project
0:25:28 > 0:25:32'and the family only moved in properly two weeks ago.
0:25:32 > 0:25:35'So how was the experience for them?'
0:25:35 > 0:25:39Highs when we started and when you see big things happening,
0:25:39 > 0:25:42when the new roof went on and the garages went up,
0:25:42 > 0:25:45having it all plastered and having the floors go down,
0:25:45 > 0:25:49when you can see big changes, that was really good.
0:25:49 > 0:25:54Lows. What have the lows been? Taking the roof off on Boxing Day.
0:25:54 > 0:26:01Taking the roof off on Boxing Day and the worst winter in history, the recession hasn't helped,
0:26:01 > 0:26:06so we've had to work hard at it and we've stopped and started,
0:26:06 > 0:26:12mainly due to things that have been unforeseen sort of thing.
0:26:12 > 0:26:17But we're there now and we've moved in.
0:26:17 > 0:26:21# And it looks like we might have made it
0:26:21 > 0:26:28# Yes, it looks like we've made it to the end
0:26:29 > 0:26:33'So they've made it, and as is often the case with projects like this,
0:26:33 > 0:26:36'it's been a bit of a rough ride at times.
0:26:36 > 0:26:39'But why did it take six months longer than anticipated?'
0:26:39 > 0:26:42Planning permission took nearly 12 months,
0:26:42 > 0:26:49going back and forth, back and forth, but we eventually came out with what we pretty much wanted.
0:26:49 > 0:26:52We had to make a couple of changes.
0:26:52 > 0:26:57And then from when we got planning permission to the first spade going in the ground,
0:26:57 > 0:27:00it's been just over 13 months.
0:27:00 > 0:27:05Which isn't bad going, but if you think about the 18-hour days
0:27:05 > 0:27:08that Nigel's done, seven days a week
0:27:08 > 0:27:11with me and Lizzie and Will labouring for him,
0:27:11 > 0:27:14it's been pretty tough!
0:27:14 > 0:27:16But it's been well worth it.
0:27:17 > 0:27:22'The couple were unsure what their renovation budget was when they first bought the property.
0:27:22 > 0:27:25'So just how much have they spent?'
0:27:25 > 0:27:29When we worked it out, we thought we'd spend about 150.
0:27:29 > 0:27:34And roughly, without a calculator, it's just under that figure now.
0:27:34 > 0:27:41'It's been a long haul, but it must be a huge relief to be finally living in their fabulous new home.'
0:27:41 > 0:27:45The first weekend we moved in, because everything is new,
0:27:45 > 0:27:52it felt really strange to be living in the house that we've worked on for all these months,
0:27:52 > 0:27:57and then to actually be living in here, sitting on the sofas, sleeping in the beds was really strange.
0:27:57 > 0:28:01But very, very quickly it just feels like we've been here forever.
0:28:03 > 0:28:06'So, with £312,500 paid at auction
0:28:06 > 0:28:11'and an estimated £150,000 spent on the renovation,
0:28:11 > 0:28:17'making a total of £462,500 so far, has the work been worth it?
0:28:17 > 0:28:21'We asked two local estate agents for their opinions.'
0:28:23 > 0:28:26I think the property's wonderful. It's got a lovely sweeping drive,
0:28:26 > 0:28:31three-car garage. And inside, the accommodation and presentation
0:28:31 > 0:28:35is excellent, the finish is superb all the way through.
0:28:35 > 0:28:38I have no issues at all with the quality of this house.
0:28:38 > 0:28:42The property overall has been finished to an excellent standard,
0:28:42 > 0:28:45very thoughtful in terms of the refurbishment
0:28:45 > 0:28:48and, aesthetically, offers something a little different
0:28:48 > 0:28:50than a lot of other properties in the area.
0:28:50 > 0:28:56'The estate agents reckon they could make £1,500 per month on the rental market.
0:28:56 > 0:29:01'But Nigel and Claire have always intended this to be their family home.
0:29:01 > 0:29:05'After all their hard work, have their improvements added value?
0:29:05 > 0:29:11'What could it make on the resale market, remembering their outlay is just over £462,000?'
0:29:11 > 0:29:16I would expect to put the house onto the market at £495,000.
0:29:16 > 0:29:20I would look to put the property on the open market in the region of £600,000.
0:29:20 > 0:29:23'Quite a difference of opinion there
0:29:23 > 0:29:27'with the current climate making it fairly difficult to predict. What does Nigel think?'
0:29:27 > 0:29:33I think I'll go with 600 because at this point, we haven't finished the property,
0:29:33 > 0:29:37the actual building is finished, we've got a lot of landscaping to do,
0:29:37 > 0:29:42we're in the middle of a recession and I think, when we actually market the property in a few years,
0:29:42 > 0:29:46I think there'll be a hell of a difference in the price.
0:29:46 > 0:29:49'Well, it's unlikely they'll be selling any time soon
0:29:49 > 0:29:52'considering they've only been living here for two weeks.
0:29:52 > 0:29:56'How do they feel now the hard work's behind them?'
0:29:56 > 0:30:00When we look at the photographs of what we bought to what we've got now,
0:30:00 > 0:30:03you have to pinch yourself. It's a lovely feeling, isn't it?
0:30:03 > 0:30:10It is, yeah, and I think what we've achieved is, as we've said before, a lovely family home
0:30:10 > 0:30:18that even when we sell the property, we'll be able to drive past it and say to ourselves, "We built that".
0:30:22 > 0:30:26'I'm in the heart of Lancashire in its historical capital, Preston,
0:30:26 > 0:30:30'almost exactly midway between Glasgow and London.'
0:30:30 > 0:30:32Preston - a city of firsts.
0:30:32 > 0:30:36The first motorway in the UK, the M6,
0:30:36 > 0:30:38the first traffic cones ever used
0:30:38 > 0:30:41and the first place outside London
0:30:41 > 0:30:44where they used gas lights.
0:30:44 > 0:30:48So, what's that got to do with property? Absolutely nothing at all!
0:30:48 > 0:30:52But this is the one I'm here to see. Had a guide price of £35,000 to £40,000.
0:30:52 > 0:30:56It's a flat in this converted Victorian terrace. Let's take a look inside.
0:30:58 > 0:31:04'The terrace was built in 1859 but divided into two flats in 1992.
0:31:08 > 0:31:12'It's the one-bed ground floor flat that I'm here to see.'
0:31:12 > 0:31:16So, what's on offer? Oh, I say, that looks pretty good.
0:31:16 > 0:31:21I'll tell you about that in a minute. We've got this corridor leading down to the rear.
0:31:21 > 0:31:25Your bedroom there. Then through to the thing I've just seen, which is this!
0:31:25 > 0:31:28A fantastic, huge living room.
0:31:28 > 0:31:33Love the high ceilings, love the fact that there's still some period details
0:31:33 > 0:31:38and this massive bay window. Lots of light. Doesn't feel like a small flat to me.
0:31:38 > 0:31:40'I'm loving this already. The room's magnificent.
0:31:40 > 0:31:43'Just look at the fireplace.'
0:31:43 > 0:31:45# You're beautiful
0:31:46 > 0:31:50# You're beautiful, it's true
0:31:50 > 0:31:55'The bedroom's much less ornate, but it's still a good-size double with loads of storage.
0:31:55 > 0:32:00'But I've spotted some damp on the back bedroom wall so I'd get that checked out.
0:32:00 > 0:32:03'That said, you only really need to decorate the room,
0:32:03 > 0:32:07'add some personal touches and the bedroom's home.
0:32:08 > 0:32:15'With its loo tucked behind a wall, the bathroom is dated and, let's face it, far from pretty.
0:32:15 > 0:32:19'You'd definitely need to put a new suite on your shopping list, I'd say.
0:32:20 > 0:32:23'One good thing is that there's a decent-size back yard.
0:32:23 > 0:32:27'However, the upper flat does have right of way across it
0:32:27 > 0:32:31'as their fire escape is on the rear kitchen wall at the back.'
0:32:33 > 0:32:37So all the way to the rear of the flat and you'll find the kitchen.
0:32:37 > 0:32:40As you can see, it's in a bit of a state.
0:32:40 > 0:32:45Definitely a visit to the local DIY store or get a kitchen expert in to sort this one out.
0:32:45 > 0:32:49But it's a good-size space again, so we like that.
0:32:49 > 0:32:51Boiler looks like it need replacing.
0:32:51 > 0:32:54All in all, there's things to be done, but the good news is
0:32:54 > 0:32:57that not only do you get the flat when you buy this lot,
0:32:57 > 0:33:00you get the freehold of the building
0:33:00 > 0:33:06and that has lots of advantages in terms of the fact that you get to charge ground rent to the other flat
0:33:06 > 0:33:09and also you can do what you like to this flat without asking permission.
0:33:09 > 0:33:14However, it does come with obligations and those needs to be checked out by your solicitor.
0:33:15 > 0:33:19'The freeholder is responsible for the upkeep of the fabric of the building,
0:33:19 > 0:33:24'maintaining the shared hall that both flats use and that sort of thing.
0:33:24 > 0:33:30'But the lease agreement here means that the upper flat has to pay half the cost of works undertaken.
0:33:30 > 0:33:34'This ground-floor flat doesn't stop at ground level.
0:33:34 > 0:33:37'There's more in the basement.'
0:33:37 > 0:33:40Down here, a real bonus to the property
0:33:40 > 0:33:45because you've got a decent size cellar and it doesn't smell too damp.
0:33:45 > 0:33:48So, in its simplest form, this is a great place to store stuff,
0:33:48 > 0:33:53but I think you could do much more with this. For a start, you've got some natural light here
0:33:53 > 0:33:57so why not think about converting it into a kids' play room
0:33:57 > 0:34:01or maybe a media place with a huge great television so you can watch your movies?
0:34:01 > 0:34:06There's all sorts of things you can do. Converting it, though, really is a job for the specialist.
0:34:06 > 0:34:11You've got to think about tanking the walls, maybe putting on special membranes
0:34:11 > 0:34:15and then pumps to pump away all the dampness.
0:34:15 > 0:34:22But I think worth the effort. In terms of cost, £800 to £1,500 a square metre as a guide.
0:34:22 > 0:34:26It could add that value back onto the property, but more than that,
0:34:26 > 0:34:28it's a lifestyle thing. What a great space.
0:34:28 > 0:34:31# To the basement, people, to the basement
0:34:31 > 0:34:35# Many surprises await you
0:34:35 > 0:34:39'For anyone buying this as an investment property,
0:34:39 > 0:34:42'would it be financially worthwhile to convert the cellar?'
0:34:42 > 0:34:47'What does the auctioneer who sold it think?'
0:34:47 > 0:34:51I suppose, from the basement point of view, it could be converted.
0:34:51 > 0:34:55The height is there and the potential is there. It could be done.
0:34:55 > 0:35:00From a return point of view, not sure whether, if the property was resold
0:35:00 > 0:35:03with a basement conversion, whether that would add enough value
0:35:03 > 0:35:06for the cost involved. From a rental point of view,
0:35:06 > 0:35:10I'm not sure the increase in rental return would be worth it.
0:35:10 > 0:35:17'What about the rest of the flat that went to auction with a guide price of £35,000 to £40,000?'
0:35:18 > 0:35:23It's a good size for a one-bedroom flat. The room sizes are good, the ceiling height's nice.
0:35:23 > 0:35:28It does need some work. Standard renovation, really. Bathroom and kitchen need modernising
0:35:28 > 0:35:35and then general decoration. In terms of return, we're looking at £400 to £425 per calendar month.
0:35:35 > 0:35:39'What about the potential market value once it's been done up?'
0:35:41 > 0:35:44The value of the property once completed, without a basement conversion,
0:35:44 > 0:35:47would be £65,000 to £70,000.
0:35:47 > 0:35:53If the basement was converted, you could see a value starting at around £75,000, possibly up to £80,000,
0:35:53 > 0:35:56depending on how the rest of the flat panned out.
0:35:56 > 0:35:59So, all in all, a good-sized flat.
0:35:59 > 0:36:02Yes, it does need a bit of work to sort it out,
0:36:02 > 0:36:06but you've got the added advantage of the bit of garden, the basement
0:36:06 > 0:36:09and you get freehold of the whole building.
0:36:09 > 0:36:13And it's pretty close to Preston City Centre, so lots of reasons to buy it.
0:36:13 > 0:36:16Let's find out who did when it went to auction.
0:36:16 > 0:36:21Lot 111 is a vacant one-bedroom ground-floor flat.
0:36:21 > 0:36:24'This lot was towards the end of the auction
0:36:24 > 0:36:26'so the room was emptier than earlier.
0:36:26 > 0:36:28'Let's find out if anyone got a bargain.'
0:36:28 > 0:36:32Shall we start at 20? £20,000 do we see? 20 I've got straight in.
0:36:32 > 0:36:3525 then? 25 anywhere?
0:36:35 > 0:36:37Stood at the back I've got 25. 30.
0:36:37 > 0:36:4130 I've got there. 32 I've got. 34?
0:36:41 > 0:36:4534 I've got. Want to make it 36, sir?
0:36:46 > 0:36:49I think that's a half I've got. OK. 34 and a half, I'll take it.
0:36:49 > 0:36:5335,000. 35 I've got. 35 and a half, then.
0:36:55 > 0:36:58OK, it's with the gentleman sat right in front of me at 35,000.
0:36:58 > 0:37:0135 and a half, new bidder at the back.
0:37:01 > 0:37:0435 and a half I've got. 36. Got it. And a half?
0:37:04 > 0:37:07Got that, as well. 37.
0:37:07 > 0:37:09Got. 37 and a half. Yes.
0:37:09 > 0:37:1238. And a half.
0:37:12 > 0:37:15I've got it. Want to make it 40?
0:37:15 > 0:37:16Are you sure? 40,000 I've got.
0:37:16 > 0:37:2041? 41 I've got. 42. Shaking his head.
0:37:20 > 0:37:23£41,000 then to you, sir, for the first time.
0:37:23 > 0:37:26Second time at 41,000. Third and final time.
0:37:26 > 0:37:29Well done, sir. Your paddle number is 777.
0:37:29 > 0:37:35'That final successful bid of £41,000 was made by Paul.
0:37:35 > 0:37:37'He's an engineer who lives in Preston.
0:37:37 > 0:37:42'He bought the flat in partnership with his friend, Chris, who's a stockbroker.
0:37:43 > 0:37:48'I met up with them at the flat to find out more.'
0:37:48 > 0:37:52- Paul, Chris, good to meet you both. Congratulations.- Thank you.
0:37:52 > 0:37:56Tell me why you want to buy this little flat. Well, big flat, actually!
0:37:56 > 0:38:01I actually came to have a look around and dismissed it
0:38:01 > 0:38:05because my initial impression was that it was going to be a smaller place
0:38:05 > 0:38:08in not too bad condition.
0:38:08 > 0:38:13And what I found was a larger place but there's damp problems and various other issues here.
0:38:13 > 0:38:20- I wrote it off initially. - You shouldn't get excited about it cos it's a boring one-bedroom flat.
0:38:20 > 0:38:24- Boring?- Well, the other places we've got are six, seven bedrooms
0:38:24 > 0:38:27- so it didn't...- There's not a lot in it.- It's got a cellar.
0:38:27 > 0:38:33- Yeah.- It's great! It's got huge great rooms, high ceilings. What do you want?
0:38:33 > 0:38:36I was keen. I'd only seen the outside but I wanted to buy it.
0:38:36 > 0:38:42But we had our eye on another place at the time that needed totally knocking around.
0:38:42 > 0:38:46I think Paul quite fancied the idea of bashing something up a little bit.
0:38:46 > 0:38:51But he rang me when I was having my lunch one day at work and said, "The auction's in 45 minutes,
0:38:51 > 0:38:55"what do you think?" And so we thought we'd give it a whirl.
0:38:55 > 0:38:59It'd be a shame if we didn't go and it went for a good price, I'd be disappointed.
0:38:59 > 0:39:03So you were told you were going to the auction 45 minutes before it started?
0:39:03 > 0:39:07- Literally. It was a mad rush. - But the thing with Paul is...
0:39:07 > 0:39:10That's why the partnership works so well.
0:39:10 > 0:39:16He's the ideal person to be going to the auction. You know that he'll do the right thing as a friend.
0:39:16 > 0:39:21- Why are you such an ideal guy?- I can imagine, if I sent Chris, he'd end up going way above the guide price
0:39:21 > 0:39:24and landing us in a more expensive property,
0:39:24 > 0:39:28whereas I'd be quite regimented and I wouldn't go over my top.
0:39:28 > 0:39:30But it was a little bit last-minute.
0:39:30 > 0:39:35- Definitely.- Yeah, it was. But it's all part of the fun, isn't it?
0:39:35 > 0:39:39'I'm impressed. These guys seem to have a great working partnership.'
0:39:39 > 0:39:43- Tell me about the relationship between you two.- We're friends
0:39:43 > 0:39:46and a few years ago, I was looking at buying a property
0:39:46 > 0:39:51and as Chris already had a rental property, I thought I'd give him a call and see what he thought
0:39:51 > 0:39:55and he said, "I'll go halves with you on the next one" so it started from there.
0:39:55 > 0:40:00So we went halves on that first property and a couple of years later bought another one.
0:40:00 > 0:40:08- Obviously, financially, it's easier to share, but also with the stress levels, it helps.- Right.
0:40:08 > 0:40:13- So you've invested together on all the properties you've got so far. - Yeah.- Yeah.
0:40:13 > 0:40:15'Paul and Chris aren't full-time developers,
0:40:15 > 0:40:19'as Paul still works as an engineer and Chris a stockbroker.
0:40:19 > 0:40:23'They intend to use contacts in the trade they've worked with before.
0:40:23 > 0:40:25'So what will they do here?'
0:40:25 > 0:40:29- Talk me through exactly what you're going to do. - We'll start from the front.
0:40:29 > 0:40:35Metal railing round the front, we'll redo the flagged area at the front so you get a nice first impression.
0:40:35 > 0:40:41We'll decorate the hall, stairs and landing, recarpet that so it looks pretty sharp.
0:40:41 > 0:40:45And then go through the house and just give it a nice, fresh, clean, neutral look.
0:40:45 > 0:40:49We have to, at the back, sort out the damp. So all the plaster's being chipped off
0:40:49 > 0:40:55and replastered, reskimmed, once the damp's sorted and then it's a new bathroom and a new kitchen.
0:40:55 > 0:40:58'Well, no mention of that cellar so far.
0:40:58 > 0:41:04'So do the boys have any plans for that potentially beautiful basement?'
0:41:04 > 0:41:07I think, realistically, it's going to be for future development.
0:41:07 > 0:41:12At the moment, we'll concentrate on the main house, just for speed of getting it rented
0:41:12 > 0:41:16and getting some money back, but there's potential in the future.
0:41:16 > 0:41:18And it's a great storage space for any tenants.
0:41:18 > 0:41:22- And the budget for all the work so far?- £10,000.
0:41:22 > 0:41:24- £10,000?- Yeah.- And a timescale?
0:41:24 > 0:41:28- Six weeks.- OK.- Start tomorrow. We'll crack on quick. We're good to go.
0:41:28 > 0:41:33- We've got everyone lined up for the next few weeks. - Congratulations. Lovely to meet you.
0:41:33 > 0:41:36- Good luck with it.- Thank you.
0:41:36 > 0:41:39Well, it may have been a bit of a last-minute decision
0:41:39 > 0:41:43but I think Paul and Chris have got themselves a great property here.
0:41:43 > 0:41:46But can they really restore it for ten grand and in six weeks?
0:41:46 > 0:41:49You can find out later in the show.
0:41:52 > 0:41:57They say time is a healer, but it can be an enemy if you're up against a deadline.
0:41:57 > 0:42:01- What has happened to those properties? - Let's go back and find out.
0:42:04 > 0:42:07'We're back in New Cross, Southeast London,
0:42:07 > 0:42:12'where this mid-terrace property sold at auction for £272,000
0:42:12 > 0:42:15'to food exporter and importer Ishmael.
0:42:15 > 0:42:19'The house was in a pretty poor state and split into two flats.
0:42:19 > 0:42:24'But Ishmael had ambitious plans to squeeze in three apartments.
0:42:24 > 0:42:29'He hoped to make developing less a part-time interest and more a full-time career.'
0:42:29 > 0:42:34I'm changing my career focus gradually in the property business.
0:42:34 > 0:42:39Because I am doing my import/export business, property was my part-time hobby.
0:42:39 > 0:42:43In the last five months, I've decided it's going to be vice-versa.
0:42:43 > 0:42:49'13 months later we're back to see if Ishmael had bitten off more than he could chew.
0:42:52 > 0:42:56'Unfortunately, he hasn't got planning permission for three flats,
0:42:56 > 0:43:02'although he is appealing the decision. So there are still just two, but they are much bigger.
0:43:02 > 0:43:06'There's a three-bed flat on the first floor and in the loft space
0:43:06 > 0:43:10'and a massive five-bed flat on the raised ground and lower ground levels.
0:43:10 > 0:43:15'I had some misgivings about Ishmael's plans, but now can't wait to see the result.'
0:43:15 > 0:43:17# I was blind
0:43:17 > 0:43:20# Now I can see
0:43:20 > 0:43:23# You made a believer
0:43:23 > 0:43:26# Out of me
0:43:26 > 0:43:31'The lower ground floor of the five-bed flat has been completely transformed
0:43:31 > 0:43:34'from a dank and damp-ridden dungeon into a light and airy living space
0:43:34 > 0:43:39'housing two rather than the three bedrooms intended.
0:43:39 > 0:43:41'A modern bathroom has been fitted
0:43:41 > 0:43:44'and a fabulous extension been built at the back,
0:43:44 > 0:43:48'housing a stylish and spacious kitchen/dining room.
0:43:48 > 0:43:52'Patio doors lead onto a newly-cleared decking and lawn area
0:43:52 > 0:43:56'with a summer house at the top of the garden. If planning's ever approved,
0:43:56 > 0:43:59'this floor would become a self-contained two-bedroom garden flat.'
0:43:59 > 0:44:03I decided to do the extension and move the kitchen upstairs in here
0:44:03 > 0:44:09'so that people can enjoy the garden in the summertime.
0:44:09 > 0:44:14And this part is one of my favourites in this project.
0:44:14 > 0:44:20'Moving upstairs to the raised ground floor area are the other three bedrooms.
0:44:20 > 0:44:25'The damp has been eradicated, the rooms are fresh and light with a contemporary finish.
0:44:25 > 0:44:29'The former kitchen has been split into a stylish bathroom and bedroom.
0:44:29 > 0:44:32'The bedroom could be converted back into a kitchen in future
0:44:32 > 0:44:39'and the front bedroom would become the lounge if this floor ever becomes a separate one-bedroom flat.
0:44:39 > 0:44:45'The former rear bedroom and storage area have been converted into a spacious fifth bedroom
0:44:45 > 0:44:47'with a double-aspect window.
0:44:47 > 0:44:52'Moving upstairs to the three-bedroom maisonette, accessed from the main front door,
0:44:52 > 0:44:58'and what was a dreary, outdated bedroom on the first floor has been brought back to life.
0:44:58 > 0:45:00'Also on this floor is a modern bathroom.
0:45:00 > 0:45:04'Up the beautifully refurbished stairs now to the second landing
0:45:04 > 0:45:08'where the formally dreary reception room is warm, modern and inviting.
0:45:13 > 0:45:18'The kitchen, once decimated by fire, is now a fully-functioning, modern galley kitchen.'
0:45:19 > 0:45:22We were lucky. The fire damage, it was small.
0:45:22 > 0:45:28It hasn't damaged the main structure, just damaged all the wall plastering and the floor.
0:45:30 > 0:45:35'Up in the loft conversion, there are two bedrooms to the front and the rear of the roof space
0:45:35 > 0:45:39'with a bathroom in between. It really is a gorgeous conversion.
0:45:39 > 0:45:43'Initially, Ishmael estimated it would take six months to complete the job.
0:45:43 > 0:45:46'So what are his thoughts 13 months on?'
0:45:46 > 0:45:52The first six months was just the planning permission. We didn't do anything else.
0:45:52 > 0:45:57And after six months, when we got the planning permission, we started the project.
0:45:57 > 0:46:01It took six months, so the whole project was roughly one year.
0:46:01 > 0:46:03'So a bit behind schedule,
0:46:03 > 0:46:08'but allowing time for planning should always be factored in when you're property developing.
0:46:08 > 0:46:13'How about Ishmael's budget? He'd originally hoped to keep it to £115,000.'
0:46:13 > 0:46:16I just got £10,000 over the budget.
0:46:16 > 0:46:23The reason, in the first budget, there wasn't any summer house
0:46:23 > 0:46:26and all the roof tiling, front and back, needed changing.
0:46:26 > 0:46:32And after that, I decided to retile the entrance and steam-clean the front and back of the house.
0:46:32 > 0:46:36'I'm really impressed with the quality of this renovation.
0:46:36 > 0:46:40'It's been completely gutted and transformed from top to toe, inside out.
0:46:40 > 0:46:48'Ishmael bought the house for £272,000 and spend £125,000 on the renovation
0:46:48 > 0:46:51'and a further 13 grand on fees and expenses,
0:46:51 > 0:46:55'making a grand total of £410,000.
0:46:55 > 0:46:57'We asked two local estate agents
0:46:57 > 0:46:59'to tell us what they make of the property
0:46:59 > 0:47:02'and whether Ishmael has made a good investment.'
0:47:02 > 0:47:05I think they're very nice and very well done,
0:47:05 > 0:47:07good specification
0:47:07 > 0:47:10I very much like the layout and the way it's done
0:47:10 > 0:47:12and I like the colouring, too. It's nicely done.
0:47:12 > 0:47:15First impressions are it's a very good conversion.
0:47:15 > 0:47:19Slightly unusual layout on the basement and the first floor level,
0:47:19 > 0:47:23the entrance level. The top floor level's very nice, three bedrooms,
0:47:23 > 0:47:26nice finish in the bathroom, the kitchen's a good space
0:47:26 > 0:47:28and it's laid out nicely, so I'm very impressed.
0:47:28 > 0:47:32'Ishmael already has the top floor three-bedroom flat on the market.
0:47:32 > 0:47:34'How much can he hope to get for it?'
0:47:34 > 0:47:39The top floor flat, in its present state as a three-bedroom with a loft conversion,
0:47:39 > 0:47:44I would value at between £275,000 to £300,000.
0:47:44 > 0:47:51The top floor three-bedroom flat I believe will resale somewhere between £275,000 and £300,000.
0:47:51 > 0:47:57I think that is good and I put them on the market £275,000.
0:47:57 > 0:48:00So I believe they're the correct price.
0:48:00 > 0:48:05'The estate agents reckon the five-bed flat split over the two lower floors
0:48:05 > 0:48:08'could achieve between £300,000 and £340,000.
0:48:08 > 0:48:12'Ishmael will rent this flat out on a temporary basis
0:48:12 > 0:48:16'but still has his fingers crossed he'll get permission to split it into two flats,
0:48:16 > 0:48:20'a one-bedroom on the ground floor and a two-bed garden flat.
0:48:20 > 0:48:23'If he is successful, what could the two flats make?'
0:48:23 > 0:48:29A one-bedroom ground floor apartment in the local area would sell for approximately £180,000.
0:48:29 > 0:48:37The one-bedroom flat upstairs I believe would resell around the £200,000 to £215,000 mark.
0:48:37 > 0:48:40'What about the two-bedroom garden flat?'
0:48:40 > 0:48:43The lower ground floor with the two bedrooms and a garden
0:48:43 > 0:48:47would sell for approximately £275,000.
0:48:47 > 0:48:52I believe the two-bedroom flat with the garden on the basement level would achieve around £250,000.
0:48:52 > 0:48:56'These valuations, added to their estimates for the top floor flat,
0:48:56 > 0:49:03'would mean Ishmael has a building worth between £705,000 and £790,000
0:49:03 > 0:49:05'if he can split it into three flats.
0:49:05 > 0:49:08'His total outlay here was £410,000,
0:49:08 > 0:49:14'which could mean a pre-tax profit of between £295,000 and £380,000.
0:49:14 > 0:49:19'So there's no doubt that splitting it into three is worth holding out for.
0:49:19 > 0:49:23'Even if he doesn't win his appeal, he could still make a healthy pre-tax profit
0:49:23 > 0:49:30'of between £165,000 and £230,000 by keeping it as two flats. How does he feel about that?'
0:49:30 > 0:49:38I really enjoyed it because I like the deciding and doing the designs,
0:49:38 > 0:49:42deciding which kitchen you're going to put in. I really enjoyed this job.
0:49:42 > 0:49:50So when I sell all the property, when I refinance, I'm looking forward to starting another project.
0:49:54 > 0:49:58'Time now to return to Preston where earlier in the programme
0:49:58 > 0:50:04'business partners Paul and Chris bought the ground floor flat conversion of this terraced house
0:50:04 > 0:50:09'plus the freehold of the whole property for £41,000.
0:50:09 > 0:50:11'Paul's an engineer who lives in Preston
0:50:11 > 0:50:14'and his friend, Chris, is a stockbroker.
0:50:14 > 0:50:18'They're part-time developers with two other rental properties.'
0:50:20 > 0:50:25I actually came to have a look around and dismissed it
0:50:25 > 0:50:29because my initial impression was that it was going to be a smaller place.
0:50:29 > 0:50:34He rang me when I was having lunch at work and said, "The auction's in 45 minutes, what do you think?"
0:50:34 > 0:50:36So we thought we'd give it a whirl.
0:50:37 > 0:50:41'Two months later, we return to meet up again with them
0:50:41 > 0:50:44'to see how the work's progressed.'
0:50:44 > 0:50:46I think we've done a good job.
0:50:46 > 0:50:51'Adding those new railings and the work they've done to the front garden,
0:50:51 > 0:50:57'plus the new windows they've installed have given the property much improved kerb appeal.
0:50:57 > 0:51:02'Inside, the large bay-fronted living room has been completely transformed.
0:51:02 > 0:51:06'The floors have been sanded back and look fabulous.
0:51:06 > 0:51:10'They've certainly brought the best out of the original features
0:51:10 > 0:51:13'in this lovely room with its high ceilings.
0:51:14 > 0:51:19'The bedroom has been redecorated and the kitchen has been completely refitted
0:51:19 > 0:51:22'with new units, appliances and flooring.
0:51:24 > 0:51:28'The tired old bathroom suite has been brought right up to date.
0:51:28 > 0:51:33'It's all looking good, but it's not been easy getting here.'
0:51:33 > 0:51:35We've had quite a lot of work to do in here.
0:51:35 > 0:51:38The main thing we had to contend with at the start
0:51:38 > 0:51:40was damp all along the back of these walls
0:51:40 > 0:51:45and into the main part of the house, but it certainly was at its worst in the kitchen area.
0:51:45 > 0:51:51We ripped the kitchen out and stripped the walls back to the brickwork, had it replastered.
0:51:51 > 0:51:54It looked absolutely horrendous during the process
0:51:54 > 0:51:57but I think we're pretty pleased with how it's turned out
0:51:57 > 0:52:01and it gives a nice, fresh, contemporary look.
0:52:01 > 0:52:05'The kitchen looks out onto the garden, which is a real bonus here.
0:52:07 > 0:52:11'The upstairs flat only has access via a fire escape.
0:52:11 > 0:52:15'Paul and Chris both have full-time jobs, so who did all the work?'
0:52:15 > 0:52:19We basically aimed to get tradesmen to do all the work,
0:52:19 > 0:52:23but given the timescale, there's certain people that you can't fit in.
0:52:23 > 0:52:27So we picked up the jobs that we couldn't line someone up to do.
0:52:27 > 0:52:32'So they ended up doing a lot of the joinery work, like skirting boards.
0:52:32 > 0:52:37'Paul's done a lot of plumbing, rerouting the pipes in the kitchen and bathroom.'
0:52:39 > 0:52:42So the layout of the bathroom stayed pretty much the same.
0:52:42 > 0:52:46We've had to move the shower from this wall here, where the window overhangs the bath,
0:52:46 > 0:52:50cos we wouldn't get a good seal there, and we moved it over to this wall
0:52:50 > 0:52:55and built a false wall to support the shower and overhang the bath.
0:52:55 > 0:53:00It's been quite a fiddly job cos it's quite tight in here
0:53:00 > 0:53:04with the amount of plumbing work, but I'm really happy with the result.
0:53:04 > 0:53:09'As Chris and Paul bought the freehold for the whole property,
0:53:09 > 0:53:12'they're responsible for the communal areas.'
0:53:12 > 0:53:15When we first came to the property, the whole place felt dingy,
0:53:15 > 0:53:21so we've tried to add more light and just brighten everything up, box in all the meter cupboards,
0:53:21 > 0:53:27also the floor, and we've treated the upstairs tenants to a new stair carpet, so they're delighted.
0:53:27 > 0:53:32'Nice one, Chris. I thought there was scope for a basement conversion down here.
0:53:32 > 0:53:37'Have they given any more thought to that?'
0:53:37 > 0:53:42We've had the fire officer round from the council to have a look at what we need to do in terms of regulations
0:53:42 > 0:53:47and we do have to plasterboard the roof of the cellar and do a bit of work
0:53:47 > 0:53:51but we'll just keep that simple and get it done to the minimum we need.
0:53:51 > 0:53:57'They paid £41,000 for the flat and the freehold of the whole property.
0:53:57 > 0:54:00'How much did the work cost? Did they stick to their budget?'
0:54:00 > 0:54:05We've still got a couple of bills to come in but we're looking on target for just over £10,000.
0:54:05 > 0:54:12We could try and get all the walls perfectly smooth and all the rest but it's about getting the right balance.
0:54:12 > 0:54:17We wanted someone to think, "It's a nice place, it's clean, it's bright, it's fresh."
0:54:17 > 0:54:21They can put the pictures up they want to, put mirrors up.
0:54:21 > 0:54:25We wanted to get it to a level where we could show people and hopefully they'll be pleased.
0:54:27 > 0:54:32'Time to get some advice from two local property experts.'
0:54:32 > 0:54:36I think the best selling point of the property is probably the lounge
0:54:36 > 0:54:38with the fireplace and the high ceilings.
0:54:38 > 0:54:41It sets a very nice tone for the whole property.
0:54:41 > 0:54:44First impressions of the property are really good.
0:54:44 > 0:54:47The refurb's been done really well, very quickly,
0:54:47 > 0:54:50really good standard. It's very nice to see that they've made an effort
0:54:50 > 0:54:53to keep the communal areas very tidy, very clean,
0:54:53 > 0:54:56and I think as anyone comes to look at the property,
0:54:56 > 0:55:00one of the first things they will notice is the communal areas are very well cared for.
0:55:00 > 0:55:05I think with the kitchen, they've done a really good job. Kept it very simple
0:55:05 > 0:55:08but still nice, modern units, it's nice and spacious
0:55:08 > 0:55:11so you can get a dining table in there if you wanted to.
0:55:12 > 0:55:16'Although Paul and Chris have added this to their buy-to-let portfolio,
0:55:16 > 0:55:20'I'm sure they'd be interested to hear how much the flat is now worth.
0:55:20 > 0:55:25'They paid £41,000 at the auction and have spent just over £10,000.
0:55:25 > 0:55:29'So is the flat now valued above £51,000?'
0:55:29 > 0:55:37From a resale point of view, as it stands, I would think that the current value is £65,000 to £70,000.
0:55:37 > 0:55:41I think the resale value of this property is going to be in the region of £70,000.
0:55:41 > 0:55:46'That valuation range of £65,000 to £70,000
0:55:46 > 0:55:50'would represent a gross profit, before the usual selling expenses,
0:55:50 > 0:55:53'of between £14,000 and £19,000.
0:55:53 > 0:55:56'Could that sort of figure tempt them to sell?'
0:55:56 > 0:55:59I wouldn't sell it for anything less than 80. 80-plus.
0:55:59 > 0:56:03Upstairs sold for 86 without a freehold.
0:56:03 > 0:56:08At the end of the day, we're not selling, so it doesn't really matter, but a bit disappointed.
0:56:08 > 0:56:13But I wont lose sleep because I'm sure, by the time we sell it, it'll be worth a little bit more.
0:56:13 > 0:56:17'The good news is that Paul and Chris have already found a tenant.
0:56:17 > 0:56:21'Let's hope they haven't let the flat for less than they could have.'
0:56:21 > 0:56:27From a rental point of view, I would expect the property to rent at £425 to £450 per calendar month.
0:56:27 > 0:56:31I think the rental figure would be £450 per calendar month.
0:56:31 > 0:56:36Yeah, that's not too far off. Obviously, it's rented already,
0:56:36 > 0:56:42on day one of showing the first person, for £450. So that's OK.
0:56:42 > 0:56:47'For their first purchase under the hammer, Paul and Chris had to race to the auction.
0:56:47 > 0:56:50'So are they happy they crossed the finish line?'
0:56:50 > 0:56:53Yeah, I'm absolutely pleased we decided to go for it.
0:56:53 > 0:56:57Even though it was a last-minute one, it definitely was the right decision
0:56:57 > 0:57:00and if I could buy another one of these tomorrow, I would.
0:57:00 > 0:57:03- You'd buy another ten tomorrow! - THEY LAUGH
0:57:06 > 0:57:09We'll be back next time with more auction rooms all around the country.
0:57:09 > 0:57:12- Join us then for more Homes Under The Hammer.- See you.- Goodbye.
0:57:14 > 0:57:18Subtitles by Red Bee Media Ltd
0:57:18 > 0:57:22E-mail subtitling@bbc.co.uk
0:57:22 > 0:57:22.