0:00:00 > 0:00:02Hello. Welcome to the show.
0:00:02 > 0:00:05Buying at auction is exciting, but you have to be in it to win it.
0:00:05 > 0:00:09Martin and I are always very careful to buy at the right price.
0:00:09 > 0:00:12One place you can do that is by buying your home under the hammer.
0:00:37 > 0:00:40If you're thinking about buying at auction,
0:00:40 > 0:00:43now just might be the time to have a go.
0:00:43 > 0:00:48The market is always changing, so you have to think about when is the right time to buy.
0:00:48 > 0:00:53- But the people on today's show have already committed. - Here's what they bought.
0:00:54 > 0:00:57This bungalow in Devon has room for a growth spurt.
0:00:57 > 0:01:03I think you could increase the size of this quite dramatically without changing the footprint.
0:01:04 > 0:01:08In west London, there's scope to turn the outside inside!
0:01:08 > 0:01:13Think about what it could be like. You only need to look next door.
0:01:14 > 0:01:19And lots of property for your money at this end-of-terrace in Stockport.
0:01:19 > 0:01:21All in all, it's not a big house,
0:01:21 > 0:01:24but it feels bigger than it actually is.
0:01:25 > 0:01:30All these properties have been sold at auction. Who bought them and what did they pay
0:01:30 > 0:01:33- when they went under the hammer? - Sold 203. Well done.
0:01:36 > 0:01:39MUSIC: Barnacle Bill by Ashworth Hope
0:01:41 > 0:01:45Ahoy, me hearties! Hoist the mainsail and batten down the hatches.
0:01:45 > 0:01:49I'm on the south coast getting a healthy dose of sea air.
0:01:52 > 0:01:55Today I'm in Devon, in the county city of Plymouth.
0:01:55 > 0:01:58It was extensively bombed during World War II
0:01:58 > 0:02:01and much of the city has been completely rebuilt.
0:02:01 > 0:02:05But now it's a lively place. Lots of students, lots going on.
0:02:05 > 0:02:07Great place to invest in property.
0:02:11 > 0:02:16But today's property might not fit the bill as a student residence.
0:02:16 > 0:02:19In fact, it's in a rather pukka part of the city.
0:02:19 > 0:02:25The lot I'm here to see is actually in Plymstock, a suburb of Plymouth,
0:02:25 > 0:02:28very popular with commuters and extremely highly regarded.
0:02:28 > 0:02:30So, what's on offer?
0:02:30 > 0:02:35It was this, a two-bedroomed bungalow with a guide price of 130,000 quid
0:02:35 > 0:02:41in a very nice, quiet cul-de-sac, beautiful views. It's looking good so far.
0:02:41 > 0:02:46But will it be a case of sink or swim inside?
0:02:47 > 0:02:51Now, probably built around the 1930s, this place,
0:02:51 > 0:02:54and I know people who only buy houses from that era
0:02:54 > 0:02:57because they like the way they were constructed.
0:02:57 > 0:03:01Solid, quite sensibly designed. How does this stack up?
0:03:01 > 0:03:04First bedroom. Unusual to see such a lovely fireplace in a bedroom.
0:03:04 > 0:03:06I'd keep that for sure.
0:03:06 > 0:03:10Living room area there. Corridor continues round to the second bedroom.
0:03:10 > 0:03:14Bathroom and loo. Very antiquated.
0:03:14 > 0:03:17Wow, look at that bath! Superb(!)
0:03:17 > 0:03:22Then through into the kitchen, or the space where the kitchen would be.
0:03:22 > 0:03:26At the current time, there isn't a kitchen at all here,
0:03:26 > 0:03:29which does give issues when it comes to getting a mortgage.
0:03:29 > 0:03:32But it's not a bad-sized space. Access to the rear there.
0:03:32 > 0:03:37So, all in all, the layout, I think, works.
0:03:38 > 0:03:41It's a good solid bungalow for sure
0:03:41 > 0:03:44and the period features are bang on the money.
0:03:44 > 0:03:47But where is the room for improvement in a property like this?
0:03:49 > 0:03:53The room itself is a nice size. Open fire, which is good to see.
0:03:53 > 0:03:59And then you've got these doors which link through to another living area.
0:03:59 > 0:04:06Now, an obvious thing you might consider is possibly converting this into a third bedroom.
0:04:06 > 0:04:10I don't know. One of the big issues with bungalows, to my mind,
0:04:10 > 0:04:13is they do sometimes feel a bit cramped.
0:04:13 > 0:04:16A great thing about this one is this big space
0:04:16 > 0:04:18so I, personally, would keep it.
0:04:18 > 0:04:22Keep it as a two-bedroomed well-proportioned bungalow.
0:04:22 > 0:04:25Speaking of good proportions,
0:04:25 > 0:04:28there's plenty more to this auction lot.
0:04:28 > 0:04:32A fabulous garden at the front, with plenty of off-street parking.
0:04:32 > 0:04:35And at the back, well, I'm getting some big ideas!
0:04:35 > 0:04:37It's out the back here
0:04:37 > 0:04:40where I think there's great potential for this bungalow.
0:04:40 > 0:04:44It's a sloping garden. It would be nice to have some decking.
0:04:44 > 0:04:47If you stood on a chair, you might be able to see Plymouth Sound!
0:04:47 > 0:04:51But I think you could increase the size of this bungalow dramatically
0:04:51 > 0:04:53without changing the footprint.
0:04:53 > 0:04:57Straighten off the edges, going up, maybe putting in a dormer.
0:04:57 > 0:05:01That's what similar properties in the area have done. It's very effective.
0:05:01 > 0:05:04It costs money, but builds in real value.
0:05:04 > 0:05:06A good thing to go for.
0:05:06 > 0:05:11# The only way is up, baby,
0:05:11 > 0:05:14# For you and me now. #
0:05:14 > 0:05:18We spoke to the auctioneer who sold it to find out whether the only way is up
0:05:18 > 0:05:22for this bungalow, and also to learn more about the neighbourhood.
0:05:24 > 0:05:28Plymstock is a total mix of dwellings. Quite a few bungalows,
0:05:28 > 0:05:30quite nice family houses.
0:05:30 > 0:05:35It's for people who don't want to live in the city but want it handy.
0:05:35 > 0:05:38Plymstock ticks a lot of boxes with the countryside so near.
0:05:38 > 0:05:41So that's the thumbs-up, then.
0:05:41 > 0:05:45What are the best options for adding value to this two-bed bungalow?
0:05:45 > 0:05:49As far as I see it, there's two roads to follow.
0:05:49 > 0:05:52The first one would be to make the very best of what's there
0:05:52 > 0:05:55or go up in the roof, like some of the neighbours have done.
0:05:55 > 0:05:59But you have to watch your capital values. There's always a ceiling.
0:05:59 > 0:06:01Wise words of caution.
0:06:01 > 0:06:05With a straightforward renovation, could it make a good buy-to-let?
0:06:08 > 0:06:13You'd probably get something in the region of 650, maybe £675 per calendar month.
0:06:13 > 0:06:15Not bad!
0:06:15 > 0:06:19What if the property was sold close to the guide price of 130,000
0:06:19 > 0:06:22and the buyer was tempted to extend into the roof?
0:06:24 > 0:06:28Personally, I'm struggling to see the end value of anything there
0:06:28 > 0:06:30much over £250,000.
0:06:30 > 0:06:35Hence I would lean slightly towards making the very best of what's here
0:06:35 > 0:06:38rather than risking further investment up in the roof
0:06:38 > 0:06:43unless it was going to be my home, in which case the new owner could justify that.
0:06:43 > 0:06:45So, what do you think?
0:06:45 > 0:06:49Do you like it? I do. I think it has great potential.
0:06:49 > 0:06:52The cheap option is just to reconfigure downstairs,
0:06:52 > 0:06:55creating an extra bedroom where the dining room is.
0:06:55 > 0:06:59The more expensive choice would be to put a dormer in. You'd need planning permission,
0:06:59 > 0:07:06but it would make the most of the views. Let's see who spotted it when it went under the hammer.
0:07:09 > 0:07:13Two-bedroomed bungalow for refurbishment.
0:07:13 > 0:07:15115, we'll start. No less. Thank you.
0:07:15 > 0:07:17At 115. 115.
0:07:17 > 0:07:18118. 118.
0:07:18 > 0:07:21120. 122.
0:07:21 > 0:07:22124?
0:07:22 > 0:07:24126. 128.
0:07:24 > 0:07:27128 I've got. 128.
0:07:27 > 0:07:29At 128 for Lot 77.
0:07:29 > 0:07:31At 128. At 128.
0:07:31 > 0:07:34At 128, the first time.
0:07:34 > 0:07:36At 128 second time.
0:07:36 > 0:07:40At 128. 29. 129. 130.
0:07:40 > 0:07:42130. At 130.
0:07:42 > 0:07:44That's not nice, is it? Not really.
0:07:44 > 0:07:46He thought he had it, then.
0:07:46 > 0:07:49At 130 once. I'm not going to take my eyes off you.
0:07:49 > 0:07:51130 twice.
0:07:51 > 0:07:53At 130. Sure and done? It's your last chance.
0:07:53 > 0:07:55Here we go. At 1-3-0.
0:07:55 > 0:07:58And out. 1-3-0.
0:07:58 > 0:08:01That's yours. Well done, sir. Well done.
0:08:01 > 0:08:05That successful bid of 130,000 came from Gary.
0:08:05 > 0:08:08# With a wink and a smile. #
0:08:08 > 0:08:11And well he might wink.
0:08:11 > 0:08:14He's an experienced builder and property developer.
0:08:14 > 0:08:17It looks like he's got an eye for a deal.
0:08:17 > 0:08:18Congratulations.
0:08:18 > 0:08:20Why did you want to buy the bungalow?
0:08:20 > 0:08:25It was the best one that came up at auction. Few places are coming up at auction.
0:08:25 > 0:08:27This was the best location I could find.
0:08:27 > 0:08:30Not many places up at auction? Tell me more.
0:08:30 > 0:08:33The price bracket I'm looking at, and the areas I'm after.
0:08:33 > 0:08:36Down in Cornwall, yeah, there's plenty,
0:08:36 > 0:08:39but I prefer to stay in the Plymouth perimeter,
0:08:39 > 0:08:40or just outside.
0:08:40 > 0:08:43- Why Plymouth?- There's a lot of young families here.
0:08:43 > 0:08:46Hopefully this will be ideal for them.
0:08:46 > 0:08:49Gary is clearly knowledgeable about his target market.
0:08:49 > 0:08:55Specialising in one area is a very good idea as you get to know what's possible
0:08:55 > 0:08:58in terms of renovation costs versus resale prices.
0:08:58 > 0:09:02So your strategy is to do what, in general?
0:09:02 > 0:09:06- Keep them, sell them? - I buy, do up and resell.
0:09:06 > 0:09:11I steer away from rental because I need the income from the sale to keep me going.
0:09:11 > 0:09:17- How long have you been doing this for?- Five years. I've been building for 15 years all told.
0:09:17 > 0:09:20- But five years I've been doing this. - How's it gone?
0:09:20 > 0:09:27Last year was a disaster. I had one property which I ended up selling for what I'd paid for it.
0:09:27 > 0:09:32- But it didn't put you off? - It did initially, but I sat back to see where things were going.
0:09:32 > 0:09:35As I say, I decided to have another go at it.
0:09:35 > 0:09:39If I don't get it right this time, yes, it will put me off!
0:09:39 > 0:09:42# You've got to get it right. #
0:09:42 > 0:09:48It just goes to show that even experienced property developers can fall foul of tricky times.
0:09:48 > 0:09:52Let's hope he gets it right with his latest purchase.
0:09:53 > 0:09:57What was it about this bungalow that made you think it was worth going for?
0:09:57 > 0:10:01It's a good area. It's elevated, got views, which is a good thing.
0:10:01 > 0:10:05Plus potential to go into the loft area and create a bigger property,
0:10:05 > 0:10:08which next door have done very successfully.
0:10:08 > 0:10:11There's good scope to make money out of it.
0:10:11 > 0:10:16Some people in the street have done quite elaborate enhancements and extensions.
0:10:16 > 0:10:18Is that what you're planning?
0:10:18 > 0:10:23Yeah, the main one is loft. I've got an architect doing drawings at the moment.
0:10:23 > 0:10:29- I should get two bedrooms and a bathroom up there easily.- Wow! - Whether we go further, I'm not sure.
0:10:29 > 0:10:32A large dormer to the back of the property is the plans.
0:10:32 > 0:10:36To the front, sadly, it'll take a lot longer to get permission for that.
0:10:36 > 0:10:40So I'll go through building regs as opposed to planning.
0:10:40 > 0:10:43# Everything changes but you. #
0:10:44 > 0:10:46So the front of the property will stay as it is
0:10:46 > 0:10:52because changing its appearance requires planning permission which would slow things down.
0:10:52 > 0:10:59Whilst a dormer at the back requires building regs, it's classed as permitted development
0:10:59 > 0:11:02so no wait for planning permission.
0:11:02 > 0:11:08That will make things quicker and easier for Gary, helping him stick to his six-month timescale.
0:11:08 > 0:11:10But how much will it all cost?
0:11:10 > 0:11:13I've budgeted about 50 to 60,000.
0:11:13 > 0:11:17So it's quite a lot on top of the price I paid for the property.
0:11:17 > 0:11:20But hopefully, market value, it should see a good return.
0:11:20 > 0:11:24What kind of involvement, in terms of the building, do you have?
0:11:24 > 0:11:26Hands on with everything.
0:11:26 > 0:11:30I have a couple of guys who specialise in loft conversions.
0:11:30 > 0:11:36To do something like this, you have to put steels through, which is a specialist thing.
0:11:36 > 0:11:39I'll employ them to get that in place and build the roof structure.
0:11:39 > 0:11:43After that, it's down to me and whoever else I call in.
0:11:43 > 0:11:47- Congratulations. Good luck. Look forward to seeing you again. - Thank you.
0:11:47 > 0:11:50So, potential profit in this one for Gary,
0:11:50 > 0:11:55and it's good to see he wasn't put off by his unfortunate experience last time.
0:11:55 > 0:11:59In terms of what he's going to do, it's going to be a big improvement.
0:11:59 > 0:12:05How will he get on and will he meet that six-month timescale? Find out later in the show!
0:12:13 > 0:12:16I'm in a highly-desirable part of London today,
0:12:16 > 0:12:19a place called West Kensington.
0:12:19 > 0:12:24Flats sell for over £300,000 and properties can command millions of dosh.
0:12:24 > 0:12:28So I was delighted to find a property with a guide price
0:12:28 > 0:12:30of £425,000.
0:12:30 > 0:12:33It's an attractive three-bed end-of-terrace
0:12:33 > 0:12:35so there must be a catch!
0:12:35 > 0:12:39Ooh! Not exactly my idea of attractive!
0:12:39 > 0:12:41Let's see if it gets better inside.
0:12:41 > 0:12:45# You can't judge an apple by looking at a tree
0:12:45 > 0:12:49# You can't judge honey by looking at the bee
0:12:49 > 0:12:53# You can't judge a daughter by looking at the mother
0:12:53 > 0:12:58# You can't judge a book by looking at the cover. #
0:12:59 > 0:13:03This three-bed end-terrace may not be the prettiest on the block,
0:13:03 > 0:13:07but will it make up for its lack of kerb appeal on the inside?
0:13:09 > 0:13:11Now, I know for a fact
0:13:11 > 0:13:14a lot of people will have been put off by this property
0:13:14 > 0:13:17because of all the breeze blocks outside.
0:13:17 > 0:13:19But it's just a security measure.
0:13:19 > 0:13:24Once you're inside, this is a really good room. Look at this.
0:13:24 > 0:13:26If you look beyond what's under here,
0:13:26 > 0:13:30you have a fantastic large, double-sash window
0:13:30 > 0:13:32and it's not been badly damaged.
0:13:32 > 0:13:36You can imagine what that would look like once these are out of the way.
0:13:36 > 0:13:39Sadly, there are not loads of hidden features here.
0:13:39 > 0:13:41No beautiful cornicing, no ceiling rose.
0:13:41 > 0:13:43But that's something you can add.
0:13:43 > 0:13:48You've really got to put on those rose-tinted spectacles with this property.
0:13:48 > 0:13:50# Whatever day I come
0:13:52 > 0:13:54# Whatever day I come
0:13:54 > 0:13:57# I'll be on my way. #
0:13:58 > 0:14:01But the renovation work necessary here
0:14:01 > 0:14:05isn't as simple as swapping breeze blocks for panes of glass.
0:14:05 > 0:14:09The layout of the kitchen and downstairs rooms needs a complete rethink.
0:14:11 > 0:14:15Disappointing kitchen! It's all a bit dingy in here.
0:14:15 > 0:14:20But rip out the units, install a lovely kitchen, loads of square footage in here.
0:14:20 > 0:14:21One disappointing thing is,
0:14:21 > 0:14:24from here, I can see it's a downstairs bathroom.
0:14:24 > 0:14:28I'm hoping there might be another one upstairs.
0:14:28 > 0:14:31Having a bathroom just off the kitchen is not ideal.
0:14:31 > 0:14:35You'd be better off opening this up to create a kitchen/diner
0:14:35 > 0:14:38and moving the bathroom upstairs.
0:14:38 > 0:14:41There's already an en-suite up there which could be expanded,
0:14:41 > 0:14:46especially as there's space to be squeezed out of the three bedrooms.
0:14:46 > 0:14:51It seems like a promising solution, but it's hard to tell when it's so gloomy in here!
0:15:04 > 0:15:08As you can probably tell, there's been fire damage up here
0:15:08 > 0:15:12which may explain why the extra security of breeze blocks was needed.
0:15:12 > 0:15:15They obviously don't help the instant appeal here
0:15:15 > 0:15:20but we must ignore that and imagine the potential once it's been redecorated
0:15:20 > 0:15:23with bright natural light flooding through it.
0:15:25 > 0:15:28There's even more food for thought outside.
0:15:28 > 0:15:33You can see there's loads of square footage out here, under-utilised.
0:15:33 > 0:15:38Just imagine if you could get planning permission to fill this area in.
0:15:38 > 0:15:40And perhaps put the front door here
0:15:40 > 0:15:42creating more room inside.
0:15:42 > 0:15:46Extra space equals big pound signs in London.
0:15:46 > 0:15:50That would make this house much more attractive and uniform.
0:15:52 > 0:15:58The extra space created by an extension would allow plenty of options at front and back.
0:15:58 > 0:16:01It's definitely the key to unlocking the potential here.
0:16:03 > 0:16:08Once you're rid of the breeze blocks, you can walk out of the back door into the garden.
0:16:08 > 0:16:10A nice bit of outside space for London.
0:16:10 > 0:16:13But ever get the feeling you're being watched?
0:16:15 > 0:16:20Hmm. It's not ideal having half a tower block able to spy on you in your garden,
0:16:20 > 0:16:24although outdoor space in London is not something you can turn your nose up at.
0:16:24 > 0:16:28Remember, before any work can be done on the outside,
0:16:28 > 0:16:29at the back or front,
0:16:29 > 0:16:32there's red tape you have to deal with.
0:16:35 > 0:16:40This property sits on a road that's within the Olympia and Avonmore Conservation Area.
0:16:40 > 0:16:43So if you wanted to make any alterations to the property,
0:16:43 > 0:16:47like changing the windows, painting the house a different colour
0:16:47 > 0:16:49or altering the facade in any way,
0:16:49 > 0:16:54you have to obtain permission from the local planning authority first.
0:16:54 > 0:16:58Hopefully, they would look kindly on any plans to turn this ugly duckling
0:16:58 > 0:17:00into a beautiful swan!
0:17:02 > 0:17:05What does a local property expert make of the place?
0:17:05 > 0:17:07We asked one for his thoughts on it.
0:17:10 > 0:17:13First impressions are it needs some work. It's had a bit of damage.
0:17:13 > 0:17:17But it's a lot of space. It's a TARDIS upstairs.
0:17:17 > 0:17:19There's a lot of potential here.
0:17:19 > 0:17:22The unused space at the front needs to be dealt with.
0:17:22 > 0:17:27If you could turn it into indoor space it would be fantastic to give a better living room.
0:17:27 > 0:17:30That would all depend on getting planning permission.
0:17:30 > 0:17:33So if the buyer stuck with the current layout,
0:17:33 > 0:17:36and simply did renovation work,
0:17:36 > 0:17:39what level of rental income could they hope for?
0:17:39 > 0:17:43If you were to rent it as a three-bed, per calendar month,
0:17:43 > 0:17:46I'd expect to achieve £2,900 per calendar month.
0:17:46 > 0:17:52The guide price of 425,000 was low for this part of London.
0:17:52 > 0:17:56So, with an imaginative refurbishment, this property might be a candidate
0:17:56 > 0:17:58for the resale market.
0:17:59 > 0:18:04If this came to the market renovated as a three-bed, I'd put it on at £850,000.
0:18:04 > 0:18:09This property has potential. OK, it's not attractive at the moment
0:18:09 > 0:18:11because of the breeze blocks.
0:18:11 > 0:18:14But think about what it could be like.
0:18:14 > 0:18:16You only need to look next door!
0:18:16 > 0:18:18My only concern is the setting.
0:18:18 > 0:18:23You are surrounded by towering blocks and to be overlooked might not suit everybody.
0:18:23 > 0:18:28But somebody wanted it. Let's find out who as we head to auction.
0:18:28 > 0:18:30Attractive three-bed house.
0:18:30 > 0:18:32I've got a proxy bid on this.
0:18:32 > 0:18:36Who'd like to kick off from this? Over to you.
0:18:36 > 0:18:39505, yeah? 510 with me.
0:18:39 > 0:18:41515.
0:18:41 > 0:18:42520.
0:18:42 > 0:18:44525?
0:18:44 > 0:18:45530 with me.
0:18:45 > 0:18:47535?
0:18:49 > 0:18:50540 with me.
0:18:50 > 0:18:52545?
0:18:52 > 0:18:56550 with me. 555?
0:18:56 > 0:19:00I've got 555 down here and it's going. 560 anywhere else?
0:19:00 > 0:19:03If not, 555, first time.
0:19:06 > 0:19:09Second time. Third and last time. Have you all done?
0:19:11 > 0:19:13Sold, 55. Well done.
0:19:13 > 0:19:17And without much competition, that successful bid of 555,000
0:19:17 > 0:19:19came from Patrick.
0:19:19 > 0:19:23He's a trained carpenter with plenty of renovation work under his belt.
0:19:23 > 0:19:30# I once dreamed I was a carpenter. #
0:19:30 > 0:19:32Patrick's originally from Ireland
0:19:32 > 0:19:35but has lived in London for 25 years
0:19:35 > 0:19:38and has done up several properties down the decades.
0:19:38 > 0:19:42I wanted to hear the plans for his latest purchase.
0:19:42 > 0:19:45Patrick, lovely to meet you today. Thank you for joining us.
0:19:45 > 0:19:47Nice to meet you!
0:19:47 > 0:19:50Why did you want to bid for this on auction day?
0:19:50 > 0:19:52What was it about this place?
0:19:52 > 0:19:56- I just saw potential in it. - What made you think, "I'm going to buy that"?
0:19:56 > 0:20:00Um, I just saw the next-door-neighbour's extension
0:20:00 > 0:20:08and thought maybe if I did something like that it would be a good house to buy.
0:20:09 > 0:20:13Patrick went to the auction intending to buy a different property
0:20:13 > 0:20:17but was outbid and decided to try his luck on this one instead.
0:20:17 > 0:20:19Undeterred by its poor condition,
0:20:19 > 0:20:24he could see this place could be something special once he'd let in the light.
0:20:24 > 0:20:28I hate seeing it in its present condition. I'd like to see it up and running.
0:20:28 > 0:20:30Even initially, you know?
0:20:30 > 0:20:35And just tidy it up and especially get those blocks off the windows!
0:20:35 > 0:20:38- Get 'em out! I know! - They're dreadful!
0:20:38 > 0:20:41I want to be able to see what you've got on offer here
0:20:41 > 0:20:44because it makes it look so down.
0:20:44 > 0:20:46I've had several quotes for new windows.
0:20:46 > 0:20:51They only take two to three weeks, so I'll order them straightaway.
0:20:51 > 0:20:56Because this is a conservation area, you can't stick any windows in.
0:20:56 > 0:20:58I've got to do sash windows again.
0:20:58 > 0:21:02The windows are the eyes of the property. It will look amazing with the windows in.
0:21:02 > 0:21:08- It'll change things.- They're more expensive than ordinary windows, so more expense.
0:21:08 > 0:21:12- More expensive cos they're beautiful!- I guess!
0:21:12 > 0:21:18Patrick plans to put in a new kitchen, new bathroom suite and flooring throughout.
0:21:18 > 0:21:22Everything will be redecorated and central heating installed.
0:21:22 > 0:21:27On top of all that, he's also planning to make this a five-bed property
0:21:27 > 0:21:28by extending it.
0:21:31 > 0:21:37What's going to happen outside? You've got almost a flying freehold situation
0:21:37 > 0:21:41with rooms over the top. Will you fill it in and make it useable?
0:21:41 > 0:21:48Yeah, I'm moving the front door. The main entrance is going to be in that space.
0:21:48 > 0:21:52And enclose the alleyway also.
0:21:52 > 0:21:57- So what is your budget to spend here?- Initially to get it up and running,
0:21:57 > 0:22:00I think maybe 20 or 30,000.
0:22:00 > 0:22:0420 or 30? That seems quite low to do all that work.
0:22:04 > 0:22:07It's not including the extension works and stuff.
0:22:07 > 0:22:12So I'll have to spend more money. I've just applied for planning,
0:22:12 > 0:22:15so I have to wait some months for that to come through.
0:22:15 > 0:22:19Will you have problems with planning, or should it go smoothly?
0:22:19 > 0:22:24Well, I'm basically just copying next door's extensions.
0:22:24 > 0:22:27So I can't see there being a problem.
0:22:27 > 0:22:32Patrick's using the same architect as his neighbours.
0:22:32 > 0:22:38Since other properties in the street already have loft conversions, he's optimistic about permission.
0:22:38 > 0:22:44Is this something you're desperate to do, or is it purely a money-making exercise?
0:22:44 > 0:22:48No, no, I do take a certain amount of pride in my work
0:22:48 > 0:22:51so I'd like to get it right if I could, you know?
0:22:51 > 0:22:55It's lovely to meet you. Good luck. It's a big project you've got here.
0:22:55 > 0:22:58- It'll be exciting to see the outcome. Well done.- Thanks.
0:22:58 > 0:23:00Nice meeting you, too.
0:23:00 > 0:23:06Patrick is confident he will complete basic renovations in just three months.
0:23:06 > 0:23:10There will be much more profit, though, if he secures planning permission to extend.
0:23:10 > 0:23:12I hope he has the luck of the Irish!
0:23:12 > 0:23:16Find out how he gets on later in the programme.
0:23:17 > 0:23:19Coming up: good news in Stockport.
0:23:19 > 0:23:22At the rear of the property is a nice little garden.
0:23:22 > 0:23:26It really is just the icing on the cake.
0:23:27 > 0:23:31We return to London to see if Patrick's blown his profit.
0:23:31 > 0:23:37The budget has slightly gone... Shot through the roof, shall we say?
0:23:38 > 0:23:41But first, in Devon, has Gary had more bad luck?
0:23:41 > 0:23:45The property is worth less because it has less space in the loft area.
0:23:45 > 0:23:46It's cost me a lot of money.
0:23:49 > 0:23:53MUSIC: Barnacle Bill by Ashworth Hope
0:23:53 > 0:23:56We're back on the south Devon coast in Plymstock
0:23:56 > 0:23:58to see how builder and developer Gary got on
0:23:58 > 0:24:03renovating this two-bed bungalow that he bought at auction for 130,000.
0:24:03 > 0:24:07He had a budget of 60,000 and a six-month timescale.
0:24:07 > 0:24:10His plan was to extend into the loft.
0:24:10 > 0:24:14But he's had his fingers burnt before in the property development game.
0:24:14 > 0:24:16Last year was a bit of a disaster.
0:24:16 > 0:24:21I had one property I should have done well on but ended up selling for what I'd paid for it.
0:24:21 > 0:24:26- It didn't put you off?- It did initially, but I sat back to see where things were going
0:24:26 > 0:24:28and decided to have another go.
0:24:28 > 0:24:32If I don't get it right this time, it will put me off!
0:24:32 > 0:24:35Well, 14 months since our first visit,
0:24:35 > 0:24:39a rather alarming eight months behind his original schedule,
0:24:39 > 0:24:43we're back to see if Gary is ready to throw in the towel.
0:24:46 > 0:24:49The outside looks completely different
0:24:49 > 0:24:51and not just because of a lick of paint.
0:24:51 > 0:24:53There's also an entirely new roof.
0:24:55 > 0:24:58Inside, the house retains a 1930s feel
0:24:58 > 0:25:01but modern materials bring it bang up to date.
0:25:01 > 0:25:04The ground floor has a whole new layout
0:25:04 > 0:25:07that really maximises the space.
0:25:07 > 0:25:10Gary has knocked through into what was the second bedroom
0:25:10 > 0:25:13to create a large, contemporary kitchen.
0:25:13 > 0:25:18Used to be a single window here. I've widened the opening and put French doors in here.
0:25:18 > 0:25:22There was a partition wall here, which I've removed.
0:25:22 > 0:25:27The utility room now is what used to be the coal shed.
0:25:27 > 0:25:30Keeps the washing machine noises out of the kitchen.
0:25:30 > 0:25:32Then the kitchen itself.
0:25:32 > 0:25:35It's turned out well, I think.
0:25:35 > 0:25:37It's what I aimed for, a nice family space.
0:25:40 > 0:25:44Out back, the extent of the work upstairs becomes clear.
0:25:44 > 0:25:48The loft conversion has turned a lowly two-bed bungalow
0:25:48 > 0:25:52into a four-bed family home.
0:25:52 > 0:25:54This is the new stairs which we put in.
0:25:54 > 0:25:57It brings us up into what used to be the loft.
0:25:57 > 0:26:01We have two bedrooms to the left here.
0:26:01 > 0:26:05The smaller one and larger one to the front.
0:26:05 > 0:26:09Then we have a bathroom with built-in shower, which is lovely.
0:26:09 > 0:26:14Then into the master bedroom here with a double aspect which is light and airy.
0:26:14 > 0:26:16It's worked out well.
0:26:16 > 0:26:20It's a total transformation from top to bottom. In fact,
0:26:20 > 0:26:23it almost feels like a completely new house.
0:26:23 > 0:26:27Gary's done most of the work himself, and there was a lot of it!
0:26:27 > 0:26:29All the upstairs is brand-new.
0:26:29 > 0:26:33The ceiling beams all through at the lower level are brand-new.
0:26:33 > 0:26:36All the ceilings are new through here.
0:26:36 > 0:26:40New roof, new windows right through apart from the bays at the front. Rewired.
0:26:40 > 0:26:43New plumbing all through. New heater, new boiler.
0:26:43 > 0:26:46Everything that needed replacing, we replaced.
0:26:46 > 0:26:52It's an amazing achievement, but that eight-month delay is a clue it wasn't all plain sailing.
0:26:52 > 0:26:56Gary found himself tangled in a planning nightmare.
0:26:56 > 0:26:58The problem was
0:26:58 > 0:27:04I had an architect who managed to get some of the calculations wrong, shall I say.
0:27:04 > 0:27:07Which meant I thought I was building it under building regs
0:27:07 > 0:27:11but it turned out I needed planning permission for part of the extension.
0:27:11 > 0:27:14There was an issue with the dormer size, basically.
0:27:14 > 0:27:20Long come short I had to halve the size of the dormer to get back in building regs.
0:27:20 > 0:27:23They wouldn't give permission for the dormer size I wanted.
0:27:23 > 0:27:26So I've still got three bedrooms and a bathroom,
0:27:26 > 0:27:29I had an en-suite originally, it's still a good space,
0:27:29 > 0:27:31but it isn't what I thought I was going to have.
0:27:33 > 0:27:36What a shame. Loft conversions are generally allowed
0:27:36 > 0:27:41under permitted development, which doesn't require planning permission.
0:27:41 > 0:27:45But there are limits on the size of the extension, which is where Gary came unstuck
0:27:45 > 0:27:48and so did his budget.
0:27:48 > 0:27:52I originally budgeted for spending 60,000.
0:27:52 > 0:27:58For everything. I was on track until the mess up with the planning and building regs and so forth.
0:27:58 > 0:28:04I've probably backtracked. It's cost me about another 15,000 on top.
0:28:04 > 0:28:06So I'm 15,000 over budget.
0:28:06 > 0:28:11And I have a property that's worth less because it has less space in the loft area,
0:28:11 > 0:28:13so it's cost me a lot of money.
0:28:14 > 0:28:17Added to the purchase price of 130,000,
0:28:17 > 0:28:21that brings Gary's total outlay to 205,000.
0:28:21 > 0:28:26But it's not just the money. He's also invested a lot of his time in this project.
0:28:26 > 0:28:29He hopes to sell it for 280,000
0:28:29 > 0:28:33but what will two local property experts think?
0:28:35 > 0:28:37Is this the same house I came to before?
0:28:37 > 0:28:41It's a total transformation. One of the best I've seen.
0:28:41 > 0:28:44The main surprise when arriving here after all this time
0:28:44 > 0:28:46is that it's got another floor.
0:28:46 > 0:28:52He's created three good bedrooms, a stunning bathroom,
0:28:52 > 0:28:55and it's got the benefit of glorious views down to the Sound.
0:28:55 > 0:29:00So he's created out of a fairly meagre bungalow
0:29:00 > 0:29:03a proper full-on house.
0:29:03 > 0:29:06The layout is lovely. I think it would be lovely for a family
0:29:06 > 0:29:08because you have a large lounge/diner,
0:29:08 > 0:29:11you have a study/other bedroom,
0:29:11 > 0:29:14a lovely-sized kitchen/breakfast room.
0:29:14 > 0:29:18The kitchen is a wow factor. It's really lovely.
0:29:18 > 0:29:22Contemporary, the wood worktops. Absolutely lovely.
0:29:22 > 0:29:26But has all Gary's hard work been worthwhile?
0:29:26 > 0:29:30What sort of rental income could he expect from the enlarged house?
0:29:30 > 0:29:34On the rental market, the house would probably achieve in the region of
0:29:34 > 0:29:38£800 a calendar month, maybe even 850.
0:29:38 > 0:29:45The rental value for this property is in the region of 850 to £900 per calendar month.
0:29:45 > 0:29:48That's a reasonable yield of up to five per cent.
0:29:48 > 0:29:52But would Gary be happy to rent out the property?
0:29:52 > 0:29:55It's not something I'd really thought about.
0:29:55 > 0:29:58It's worth a thought. See how we go with selling first.
0:29:58 > 0:30:01If that doesn't happen, I'd consider that.
0:30:01 > 0:30:04So selling the house on is still Gary's preference.
0:30:04 > 0:30:08But will the resale value meet his expectations?
0:30:09 > 0:30:13265, 275,000, something of that order.
0:30:13 > 0:30:19The resale value for this property is in the region of £275,000.
0:30:19 > 0:30:25So, not quite the £280,000 Gary was hoping for, but almost.
0:30:25 > 0:30:27It's not far off what I thought.
0:30:27 > 0:30:30I still think 280 would be worth marketing at.
0:30:30 > 0:30:34It's over the 250 threshold, so on that basis,
0:30:34 > 0:30:37I know it's more difficult to sell, but I think it's worth it.
0:30:37 > 0:30:40The big question is, have the run-in with the planners,
0:30:40 > 0:30:44the delays and the overspend dampened Gary's enthusiasm
0:30:44 > 0:30:45for property development?
0:30:49 > 0:30:53There's no point in being negative. You learn with everything you do in life.
0:30:53 > 0:30:57I'd say it's been a good experience.
0:30:57 > 0:31:03The downside is all the red tape, but apart from that I've enjoyed it. It's been great.
0:31:07 > 0:31:12For the next property that went under the hammer, I'm in Stockport, Greater Manchester.
0:31:12 > 0:31:18Like many towns in the area, it was once home to a thriving cotton industry.
0:31:18 > 0:31:21The lot I'm here to see is just outside town.
0:31:21 > 0:31:25I'm in the largely residential area of Heaton Chapel
0:31:25 > 0:31:27in north Stockport.
0:31:27 > 0:31:29Lots of local amenities and facilities,
0:31:29 > 0:31:34good bus routes, a train station. Halfway between Stockport and Manchester.
0:31:34 > 0:31:36Lots of ticks in boxes.
0:31:36 > 0:31:39And the beautiful Cheshire countryside isn't far away.
0:31:39 > 0:31:44This is the property I'm here to see. A two-bed end-of-terrace, guide price 60,000 quid.
0:31:44 > 0:31:46Let's take a look.
0:31:46 > 0:31:51The first thing I've spotted is that several bricks have been replaced - a bit odd.
0:31:51 > 0:31:54Let's hope that's the only structural issue I find.
0:31:57 > 0:32:00So, what's in store
0:32:00 > 0:32:02behind the door?
0:32:02 > 0:32:05A fairly standard layout for this kind of house.
0:32:05 > 0:32:08Straight in the door. Stairs up to the bedrooms.
0:32:08 > 0:32:12Living room there. Doesn't look in too bad a condition.
0:32:12 > 0:32:14Doesn't smell damp.
0:32:14 > 0:32:16That's always a good sign. However,
0:32:16 > 0:32:23through into the kitchen and there's been some kind of issue in the past
0:32:23 > 0:32:25which resulted in the ceiling falling down!
0:32:25 > 0:32:30It's interesting to look up here. You can see some water staining
0:32:30 > 0:32:35on the wood there. I guess that's where the bathroom is and there's been a leak.
0:32:35 > 0:32:40It looks dry now, but that could be cos the water's turned off while the house is unoccupied.
0:32:40 > 0:32:43Definitely need to be investigating that.
0:32:49 > 0:32:52But into the kitchen. It's a really nice-sized space.
0:32:52 > 0:32:57It's been turned into a kitchen/diner. A wall's been knocked down.
0:32:57 > 0:33:01It does create a good-sized space and although it's not a big house,
0:33:01 > 0:33:03it feels bigger than it actually is.
0:33:06 > 0:33:09It's all down to the open-plan layout here.
0:33:09 > 0:33:13You could run circuits round the ground floor, if you wanted.
0:33:13 > 0:33:19It's a good thing that they've kept the doors, so you can shut off individual areas if you want,
0:33:19 > 0:33:22for example to control heat and smells from the kitchen.
0:33:22 > 0:33:27I've seen some of the first floor already, so what's the rest like?
0:33:28 > 0:33:33Upstairs, a decent-sized landing. Loo and bathroom here.
0:33:33 > 0:33:36It needs a toilet seat, but otherwise at least it's a white suite
0:33:36 > 0:33:39so you could probably just refurbish that.
0:33:39 > 0:33:41Rear bedroom is a good size.
0:33:41 > 0:33:48What's in here? Looks like a newish boiler. That'll save a bit of money.
0:33:48 > 0:33:54Then through to the front where you've got a really nice-sized bedroom.
0:33:54 > 0:33:57Good to see this. A box there from where the stairs come up,
0:33:57 > 0:34:00but apart from that, a really good space.
0:34:00 > 0:34:03So, all in all, a lot of property for the money.
0:34:04 > 0:34:07Being end-of-terrace does have its benefits.
0:34:07 > 0:34:10There's space to park your car
0:34:10 > 0:34:15plus this storage area at the side in this brick-built block.
0:34:16 > 0:34:21It's hard to see it under all this snow, but at the rear of the property is a nice little garden.
0:34:21 > 0:34:28So it really is just the icing on the cake of what is a really good little property.
0:34:30 > 0:34:34To learn a bit more about the prospects for this house,
0:34:34 > 0:34:36we invited a local estate agent to look around.
0:34:36 > 0:34:39What would he change?
0:34:41 > 0:34:44The only two things that I would keep
0:34:44 > 0:34:49are obviously the central heating, it's fairly new, working and adequate.
0:34:49 > 0:34:52And the bathroom suite is fairly new.
0:34:52 > 0:34:57Apart from that, you'd probably look to put a new kitchen in,
0:34:57 > 0:34:59double-glaze the property,
0:34:59 > 0:35:01and then realistically look at the decor.
0:35:01 > 0:35:06This part of Stockport is popular with first-time buyers
0:35:06 > 0:35:08as transport links are good.
0:35:08 > 0:35:13But what about renting? How much income could the property generate once refurbished?
0:35:13 > 0:35:20I would expect the new owners to get around £550 to £575 per calendar month.
0:35:22 > 0:35:25The house went to auction guided at 60,000.
0:35:25 > 0:35:29How much could it be sold for after a full refurbishment?
0:35:29 > 0:35:34I would expect the property to fetch around 95,000 to £100,000.
0:35:34 > 0:35:38Well, deceptively spacious accommodation here
0:35:38 > 0:35:42with a decent-sized garden and good long-term resale value.
0:35:43 > 0:35:49So, a good little area and a property that needs tender loving care and refurbishment
0:35:49 > 0:35:53but nothing too major or structural. A good one to go for.
0:35:53 > 0:35:56Let's see who agreed with me when it went under the hammer.
0:35:56 > 0:36:00Lot six. Vacant two-bedroom end-terrace property.
0:36:00 > 0:36:02What's this one worth today?
0:36:02 > 0:36:06Who's going to give me 50,000? 50,000.
0:36:06 > 0:36:08At 40, then. 40 bid. Thank you. 40,000.
0:36:08 > 0:36:10Do I see 45?
0:36:10 > 0:36:1345 bid. 45 I have. Do I see 50?
0:36:13 > 0:36:1552,500 new bidder. 52,500.
0:36:15 > 0:36:16Give me 55.
0:36:16 > 0:36:1955,000. 55 bid.
0:36:19 > 0:36:2157,500?
0:36:21 > 0:36:2257,500. Do I see 60?
0:36:22 > 0:36:26At 60,000. £60,000. Do I see 61?
0:36:27 > 0:36:3061,000. 61, then. Do I see 62?
0:36:30 > 0:36:32At 62,000. Are we all done?
0:36:32 > 0:36:35At £62,000, then. For the first time.
0:36:35 > 0:36:37Second time. At 63.
0:36:37 > 0:36:4063,000 I have now. It's against you. 64 I'm looking for.
0:36:40 > 0:36:42It's in the market at 63.
0:36:42 > 0:36:4463,000 for the first time.
0:36:44 > 0:36:4763,000 for the second time.
0:36:47 > 0:36:50Are we all done at £63,000?
0:36:50 > 0:36:52It's your property, sir.
0:36:52 > 0:36:54Paddle 887.
0:36:54 > 0:37:00The successful bidder who paid £63,000 was Ken.
0:37:00 > 0:37:04He currently lives with his girlfriend Michelle in Manchester.
0:37:04 > 0:37:07They bought the property to refurbish and sell.
0:37:07 > 0:37:10I met up with Ken there to find out more.
0:37:10 > 0:37:14- Ken, lovely to meet you.- Hi. - Congratulations.- Thanks very much!
0:37:14 > 0:37:16Why did you want to buy this place?
0:37:16 > 0:37:20We viewed about 20. We had a shortlist
0:37:20 > 0:37:25and this just happened to come within the parameters we had. We had a ceiling to go for.
0:37:25 > 0:37:28What were the criteria for your list?
0:37:28 > 0:37:30We had a budget of what we could work to.
0:37:30 > 0:37:38My girlfriend worked very hard and phoned estate agents to say we were thinking about buying at auction.
0:37:38 > 0:37:41How much would it sell for once it was done up.
0:37:41 > 0:37:46So you go round, have a recce of the house and work out how much things would cost
0:37:46 > 0:37:50and see if it comes within the budget and if you can make a profit.
0:37:50 > 0:37:54- If that works, it goes on the shortlist. - Preparation to be proud of!
0:37:54 > 0:37:57I give it all to my girlfriend. She did all the preparation.
0:37:57 > 0:38:02- I'd point out things and say there's cracks here, I don't like that. - A good joint venture.- Yes.
0:38:02 > 0:38:07- What's your experience?- We've done one before. We bought a house in Croydon.
0:38:07 > 0:38:11We spent two years doing that one up. We lived in it at the time.
0:38:11 > 0:38:14So we lived in the top half whilst we did the bottom
0:38:14 > 0:38:17then moved downstairs while we did the top up.
0:38:17 > 0:38:20We were about to sell it when my girlfriend's job finished
0:38:20 > 0:38:24so rather than stay in London we moved up to Manchester.
0:38:24 > 0:38:28I was working so I could transfer to the Manchester office.
0:38:28 > 0:38:34At the time, Ken was working in the travel industry specialising in tailor-made holidays.
0:38:34 > 0:38:39# Come fly with me, let's fly, let's fly away. #
0:38:39 > 0:38:44He and Michelle successfully renovated and sold their first auction property in Croydon
0:38:44 > 0:38:47before spreading their wings and moving to Manchester.
0:38:47 > 0:38:52Let's move on to this place. What was it about it that you liked?
0:38:52 > 0:38:56It's in a pretty good area. It's in Heaton Chapel, part of Stockport.
0:38:56 > 0:39:01Easy commute into Manchester and out to Stockport as well.
0:39:01 > 0:39:02A nice, mature area.
0:39:02 > 0:39:06And the things that need to be done to the house look to be something -
0:39:06 > 0:39:08I'm not an expert in anything -
0:39:08 > 0:39:09but things we can do.
0:39:09 > 0:39:13We'll need to bring in professionals for some parts,
0:39:13 > 0:39:19but a lot of stuff, taking off wallpaper, repapering, sorting things out, we can do it.
0:39:19 > 0:39:20What are you going to do to it?
0:39:20 > 0:39:23We'll turn it round, probably sell it.
0:39:23 > 0:39:28Probably just paint the front room, neutral colours, full kitchen in here,
0:39:28 > 0:39:32- so a nice fitted kitchen.- The bathroom. There's been a leak.
0:39:32 > 0:39:38Yeah. It seems fine now. There's plumbing to be done to the bath.
0:39:38 > 0:39:41And some of the tiling in places is absolutely woeful.
0:39:41 > 0:39:43So we'll take that off and start again.
0:39:43 > 0:39:49- Who's doing the work?- As I say, we'll be doing as much as we can.
0:39:49 > 0:39:54But for time, if we gut the kitchen, we'll get somebody in who can do it.
0:39:54 > 0:39:56If it was me, it would take weeks.
0:39:56 > 0:40:01But just for speed, it's probably better to get somebody in to fit it.
0:40:01 > 0:40:04What's the timescale for sorting it out?
0:40:04 > 0:40:07Hopefully we'd need to get it on the market for the spring market.
0:40:07 > 0:40:10So three months maximum.
0:40:10 > 0:40:12What's the budget for the work?
0:40:12 > 0:40:16Initially 10,000, but in retrospect, probably more like 15.
0:40:16 > 0:40:21- And then the idea is to do what? To sell it?- Yeah, we'll sell it on.
0:40:21 > 0:40:27Then depending on if it worked, if our strategy works, we'll buy another one after that.
0:40:28 > 0:40:32Ken's looking forward to moving into property development.
0:40:32 > 0:40:34He's also setting up a new business venture,
0:40:34 > 0:40:39a company that moves luggage for walkers and cyclists so they don't have to carry it with them.
0:40:39 > 0:40:45He's willing to take a chance, and by the sounds of it, good luck is by his side.
0:40:45 > 0:40:49I won a competition that took me round the world, a yearly ticket,
0:40:49 > 0:40:51which allowed me to travel round the world.
0:40:51 > 0:40:56- A round-the-world airline ticket? - Two, so my girlfriend got to go. - Wow!
0:40:56 > 0:41:00She got time off work, but my people wouldn't let me take time off
0:41:00 > 0:41:03so I'd got to a plateau and it was time to move on.
0:41:03 > 0:41:05- What a trip!- Yeah. Quite a big trip.
0:41:05 > 0:41:07- A good trip.- Fantastic.
0:41:07 > 0:41:09Then back to properties in Stockport!
0:41:09 > 0:41:15- Yeah, that's it. There's no more glamorous place than Stockport! - Absolutely.
0:41:15 > 0:41:19- Congratulations. Good luck.- Thanks. - Look forward to seeing how you do.
0:41:21 > 0:41:26Well, this property is not so much round the world as round the corner. That's handy.
0:41:26 > 0:41:31And with a bit of luck, Ken and his girlfriend could be onto a winner.
0:41:31 > 0:41:36Well, from travelling the world, Ken has ended up in Heaton Chapel.
0:41:36 > 0:41:40I wonder what sort of journey this property will take him on
0:41:40 > 0:41:42in the coming months when he sorts it out.
0:41:42 > 0:41:45You can find out later in the show.
0:41:48 > 0:41:53Time can be a great healer, but it can also be an enemy if you're up against a deadline.
0:41:53 > 0:41:56So, what happened to the properties we've been featuring?
0:41:56 > 0:41:58Let's find out.
0:42:00 > 0:42:02We're back in West Kensington, London.
0:42:02 > 0:42:07This three-bed end-of-terrace sold at auction for 555,000
0:42:07 > 0:42:11to Patrick, a trained carpenter turned property developer
0:42:11 > 0:42:15who takes great pride in breathing life back into run-down properties.
0:42:15 > 0:42:18I met up with him to find out more.
0:42:18 > 0:42:22I hate seeing it in its present condition. I'd like to get it up and running.
0:42:22 > 0:42:26Even initially, you know, and just tidy it up
0:42:26 > 0:42:30- and especially get those blocks off the windows.- Get 'em out! I know!
0:42:30 > 0:42:35So, did Patrick manage to revive this dark and dreary property
0:42:35 > 0:42:40by giving it a smart, sophisticated appearance to match the terrace?
0:42:40 > 0:42:43We're back nearly seven months later to see how he got on.
0:42:44 > 0:42:50Oh, I hardly recognise the place! Patrick has transformed the front of the building
0:42:50 > 0:42:55by moving the front door into the newly-created wall where the archway used to be.
0:42:55 > 0:42:59This has enclosed the entrance and started to make more of this area.
0:42:59 > 0:43:02The ugly breeze blocks have been banished
0:43:02 > 0:43:06and replaced with traditional sash and case windows.
0:43:06 > 0:43:09A fresh coat of paint has really helped to upgrade this end of terrace.
0:43:12 > 0:43:15Although Patrick is still finishing the work,
0:43:15 > 0:43:20the light let in by the beautiful new windows reveals the improvements that are ongoing.
0:43:20 > 0:43:22The kitchen, which was gloomy and grubby
0:43:22 > 0:43:24has been completely overhauled.
0:43:24 > 0:43:28Now it's a bright, airy space filled with natural light.
0:43:28 > 0:43:34To create a large kitchen/diner, Patrick knocked through the wall to what was the downstairs bathroom.
0:43:34 > 0:43:36The new space opens out even further
0:43:36 > 0:43:40with a set of French windows leading to the back yard.
0:43:40 > 0:43:45Those grimy kitchen cabinets are now gone, replaced by a stylish white fitted kitchen.
0:43:47 > 0:43:51We've removed the wall that was here
0:43:51 > 0:43:54leading to the original back door and bathroom downstairs.
0:43:54 > 0:43:59We've just opened it up and installed a new kitchen.
0:43:59 > 0:44:03New units, granite worktop,
0:44:03 > 0:44:05new appliances, new flooring.
0:44:05 > 0:44:10New boiler. Just finished off the painting and tiling at this stage.
0:44:10 > 0:44:11Almost there.
0:44:14 > 0:44:17Upstairs, Patrick's taken space from one of the bedrooms
0:44:17 > 0:44:20to create a new family bathroom.
0:44:20 > 0:44:23This is a much more convenient layout.
0:44:23 > 0:44:28What's more, he's installed an en-suite for the master bedroom, a real bonus.
0:44:28 > 0:44:31It's not the only change for the better.
0:44:31 > 0:44:33Remember the fire damage in the master bedroom?
0:44:36 > 0:44:42We just took the whole ceiling down and replaced some of the timbers
0:44:42 > 0:44:44and put a new ceiling back up.
0:44:45 > 0:44:47And job sorted!
0:44:47 > 0:44:52What a difference. A fresh coat of paint and new windows have really brightened things up.
0:44:53 > 0:44:55Bedroom two has been cheered up,
0:44:55 > 0:44:59and the light shining in helps this room appear a little bigger.
0:44:59 > 0:45:02The third bedroom was decidedly dull,
0:45:02 > 0:45:07but now with two windows letting in light, it looks bright and clean.
0:45:09 > 0:45:13So, all in all, even with some work still to be completed,
0:45:13 > 0:45:17it's like night and day compared to its condition last time we came.
0:45:17 > 0:45:18So job well done, Patrick!
0:45:18 > 0:45:21However, I bet it wasn't easy!
0:45:21 > 0:45:23It was quite a demanding job.
0:45:23 > 0:45:27It was in a worse condition than I thought when I bought the house.
0:45:27 > 0:45:33So there was a lot of initial stuff that had to be done.
0:45:33 > 0:45:36When I visited the property seven months ago,
0:45:36 > 0:45:39Patrick was aiming to copy his neighbour's loft extension
0:45:39 > 0:45:42and expand this into a five-bed house.
0:45:42 > 0:45:47He did get planning permission, but there's no sign that that's underway.
0:45:47 > 0:45:49Has he changed his mind?
0:45:49 > 0:45:53I don't know if I'm going to do it right now, at any rate.
0:45:53 > 0:45:56I might try to put the house on the market and see what happens.
0:45:56 > 0:46:01And maybe consider the loft extension at a later stage if I don't sell.
0:46:03 > 0:46:09Patrick estimated his budget would be a maximum of 30,000 without the extension.
0:46:09 > 0:46:10Has he managed to keep to that?
0:46:11 > 0:46:17Well, the budget has slightly gone... Shot through the roof, shall we say?
0:46:17 > 0:46:21It's gone from the 30 initially to about 50 at this stage.
0:46:21 > 0:46:2650 is more realistically what I've spent here.
0:46:26 > 0:46:32So Patrick's gone 20,000 over budget. What about the amount of time the work has taken?
0:46:32 > 0:46:37His original timescale for the basic renovations, without the extension, was three months.
0:46:37 > 0:46:41So, seven months on, what's been the hold-up?
0:46:41 > 0:46:45I tried to do any works I was doing to suit the planning application
0:46:45 > 0:46:48on the ground floor and the first floor.
0:46:48 > 0:46:51So that was a delay for a month or two.
0:46:51 > 0:46:53Then we had the issue with the windows.
0:46:53 > 0:46:58They were like a two-month waiting time for those, the timber windows.
0:46:58 > 0:47:05And then we had all that snow and stuff around Christmas time.
0:47:05 > 0:47:07It may not be quite finished yet,
0:47:07 > 0:47:09but how does he feel it's gone?
0:47:09 > 0:47:14I think I've revived this house, brought it back to life from what it was.
0:47:14 > 0:47:21Definitely, I think it needed this overhaul badly. It was in a sorry state!
0:47:21 > 0:47:24It'll make a nice home for somebody now.
0:47:24 > 0:47:29So, with a sale price of 555,000 at auction
0:47:29 > 0:47:32and after spending about 50,000 on the refurbishment,
0:47:32 > 0:47:36making a grand total of £605,000,
0:47:36 > 0:47:39is Patrick on course to make any money from this venture?
0:47:39 > 0:47:42We asked two estate agents for their views.
0:47:45 > 0:47:48He's made some really substantial changes. It's bright,
0:47:48 > 0:47:53it's light, open, airy, all the things you'd expect to see. A good job.
0:47:53 > 0:47:56First impressions, the property looks fantastic.
0:47:56 > 0:48:00It's perfect for any family to move straight into and make their family home.
0:48:00 > 0:48:05That's great feedback for Patrick. But how do the sums add up?
0:48:05 > 0:48:09He always intended to sell this three-bed property.
0:48:09 > 0:48:12But what could he make if he rented it out instead?
0:48:14 > 0:48:17As it's three bedrooms, it should rent for £3,000 a calendar month.
0:48:17 > 0:48:22As a three-bed, the property could be marketed at £3,000 per calendar month.
0:48:22 > 0:48:25Those are pretty decent rental figures.
0:48:25 > 0:48:28What does Patrick make of them?
0:48:28 > 0:48:30I think they're very good.
0:48:30 > 0:48:35Very high figures. But I'm not sure I want to go down that road.
0:48:35 > 0:48:39I've done a high spec finish on the house
0:48:39 > 0:48:44so I thought for a sale. I was aiming at that market.
0:48:44 > 0:48:47I might try that first and see what happens.
0:48:47 > 0:48:52It looks like Patrick will definitely be aiming to sell the property first and foremost.
0:48:52 > 0:48:56Because he already has planning permission to add another two bedrooms
0:48:56 > 0:49:00he could increase his asking price by up to 30,000.
0:49:00 > 0:49:04What do the experts think he could get on today's market?
0:49:04 > 0:49:07As a completed property in its current layout, three bedrooms,
0:49:07 > 0:49:10I would look to achieve £700,000 in this market.
0:49:10 > 0:49:17As a three-bed property, I would currently value it between 700 and £720,000.
0:49:17 > 0:49:21I think it could be slightly higher but I'm still making a good profit.
0:49:21 > 0:49:29So yeah, even if I sell at those figures, I'll still be doing OK.
0:49:29 > 0:49:33If Patrick pushes ahead and completes the extension,
0:49:33 > 0:49:36at an estimated cost of 50,000,
0:49:36 > 0:49:39how much could the property achieve if put up for sale?
0:49:39 > 0:49:45As a five bedroom, I'd expect it to sell at £775,000 to £800,000.
0:49:45 > 0:49:50As a five-bed, I would say in the current market the property would achieve
0:49:50 > 0:49:53between 800 and £825,000.
0:49:53 > 0:49:59That would increase Patrick's profit but would also take a lot of time and effort.
0:49:59 > 0:50:02Perhaps that's why he's focusing on finishing the renovations
0:50:02 > 0:50:07and selling the property with planning permission as an added attraction.
0:50:07 > 0:50:09So now he's nearly finished,
0:50:09 > 0:50:11is he sold on the area?
0:50:11 > 0:50:15I might buy another property in west London, yeah.
0:50:15 > 0:50:17We'll see what happens!
0:50:21 > 0:50:24When we were last in Stockport,
0:50:24 > 0:50:28this two-bed end-of-terrace was bought for 63,000
0:50:28 > 0:50:30by Ken and his girlfriend Michelle.
0:50:30 > 0:50:32# Come fly with me
0:50:32 > 0:50:36# Let's fly, let's fly away. #
0:50:37 > 0:50:40Ken worked in the travel industry for many years
0:50:40 > 0:50:43and had enjoyed the ultimate travel experience.
0:50:45 > 0:50:49I won a competition which took me round the world. A yearly ticket to travel the world.
0:50:49 > 0:50:54- You won a round-the-world airline ticket?- Two, so my girlfriend came too.- What a trip!
0:50:54 > 0:50:59- It was a very good trip.- Fantastic. Then back to properties in Stockport.
0:50:59 > 0:51:01Yeah, that's it. Yeah.
0:51:01 > 0:51:05He and Michelle had renovated a house in Croydon
0:51:05 > 0:51:07and relocated to Manchester.
0:51:07 > 0:51:10Ken now wanted to move into property development
0:51:10 > 0:51:12so they bought this place near where they live.
0:51:12 > 0:51:16He and Michelle planned to refurbish it and then sell.
0:51:22 > 0:51:25Well, almost three months have passed and the seasons have changed
0:51:25 > 0:51:27and so has the house.
0:51:27 > 0:51:30The front door's been replaced,
0:51:30 > 0:51:32plus all the windows.
0:51:33 > 0:51:37The whole place has been completely redecorated,
0:51:37 > 0:51:42fresh paint and new carpets have really improved the appearance of the living areas.
0:51:42 > 0:51:47That ugly hole in the ceiling is now a thing of the past.
0:51:47 > 0:51:51The couple have transformed this space into a lovely kitchen/diner.
0:51:51 > 0:51:55Picking up some tips from their travels, they've put in all new appliances
0:51:55 > 0:51:58including a large American-style fridge.
0:51:58 > 0:52:02In this room we fixed the hole in the ceiling. It was very large.
0:52:02 > 0:52:05It didn't look nice, so we had that all fixed.
0:52:05 > 0:52:09We've replaced the units in the kitchen and painted it a bright, airy colour.
0:52:09 > 0:52:12Upstairs, the makeover continues.
0:52:12 > 0:52:15The bathroom looks all the better for its smart new floor
0:52:15 > 0:52:18and the carpet has given the landing a lift.
0:52:19 > 0:52:24The two bedrooms have been decorated in clean, neutral colours.
0:52:24 > 0:52:30To give the room character, Michelle borrowed furniture from a friend, adding curtains and cushions.
0:52:30 > 0:52:34Finishing touches like these really add to the house's appeal.
0:52:34 > 0:52:37It looks like it's just waiting for someone to move in.
0:52:37 > 0:52:42With both bedrooms, we tried to increase the awareness of space.
0:52:42 > 0:52:48There was pretty old wallpaper on the walls so we stripped everything back,
0:52:48 > 0:52:50lined it and painted it white.
0:52:50 > 0:52:54It's very open. We've put double beds in to show it's a double room.
0:52:54 > 0:52:58To keep costs down, they did most of the work themselves.
0:52:58 > 0:53:03They put in the hours at evenings and weekends to get it done in less than three months.
0:53:05 > 0:53:08They called in specialists to check the plumbing and electrics
0:53:08 > 0:53:11but luckily all was fine, so no nasty shocks there.
0:53:11 > 0:53:14The original budget was ten.
0:53:14 > 0:53:16We had an upper end limit of 15.
0:53:16 > 0:53:20But counting down to the very last screw that we used,
0:53:20 > 0:53:22we're probably just under the 15.
0:53:22 > 0:53:26But that includes absolutely everything. Fees and everything.
0:53:26 > 0:53:30So, Ken and Michelle are on time and on budget.
0:53:30 > 0:53:33They even managed to spruce up the outside, too.
0:53:33 > 0:53:38At the front the original flagstones have been lifted and re-laid.
0:53:38 > 0:53:42You can park there, but they haven't applied to the council to drop the kerb.
0:53:42 > 0:53:47That could be expensive, but would definitely be a strong selling point.
0:53:47 > 0:53:51After all their hard work, is Ken pleased with the finish they've achieved?
0:53:51 > 0:53:54I do come in and think about how nice it looks.
0:53:54 > 0:53:57Whether anybody else thinks that, it's up to them.
0:53:57 > 0:54:00Personally, I think it looks absolutely fine.
0:54:01 > 0:54:05The couple bought the house for 63,000
0:54:05 > 0:54:08and have spent £15,000 refurbishing it.
0:54:08 > 0:54:12So, will two local estate agents agree they've spent their money wisely?
0:54:13 > 0:54:16It's refurbished to a good standard.
0:54:16 > 0:54:19It has a new kitchen, new bathroom.
0:54:19 > 0:54:23Decor's good. So ideal for a first-time buyer or landlord.
0:54:23 > 0:54:25The new owners have done a lovely job on it.
0:54:25 > 0:54:29It's ideal for a first-time buyer now. The decor's lovely throughout.
0:54:29 > 0:54:33Nice kitchen, bathroom suite. It is as you would like it.
0:54:33 > 0:54:36The doors are a bit dated. Pine's good,
0:54:36 > 0:54:40but with the modern style of the property, I'd have painted them white.
0:54:40 > 0:54:46The only thing I would positively have done is to seek permission to drop the paving at the front,
0:54:46 > 0:54:49therefore giving off-road parking.
0:54:49 > 0:54:55There's a space there, but it can't be classed as off-road parking because of the pavement.
0:54:55 > 0:54:59Ken spent a total of £78,000 on this property, and plans to sell it.
0:54:59 > 0:55:02But has it been worth all the hard work?
0:55:02 > 0:55:04What do two property experts think?
0:55:05 > 0:55:11This property would market between £95,000 and £100,000.
0:55:11 > 0:55:16If I put this on the market today, it would be between £95,000 and £100,000.
0:55:16 > 0:55:22Well, they both agree. That valuation range would generate a gross profit
0:55:22 > 0:55:27of between 17 and 22,000 before the usual selling expenses.
0:55:29 > 0:55:33Well, that's spot on what we were hoping for.
0:55:33 > 0:55:37And, yeah, that's an excellent deal.
0:55:37 > 0:55:38I'm really pleased.
0:55:38 > 0:55:43If they can't sell straightaway, how much could Ken and Michelle hope to earn
0:55:43 > 0:55:45if they rented out the property?
0:55:46 > 0:55:48This particular property rent
0:55:48 > 0:55:55would be approximately 550 to £575 per calendar month.
0:55:55 > 0:56:00On the rental market, I feel we'd achieve around £550 per calendar month.
0:56:00 > 0:56:05That's very impressive. Certainly something to consider in the long term
0:56:05 > 0:56:07if we can't sell it.
0:56:08 > 0:56:14A rental income of £550 a month would generate a yield of just over eight per cent.
0:56:14 > 0:56:17That's definitely something to write home about.
0:56:17 > 0:56:21But Ken's already shown the property to several potential buyers
0:56:21 > 0:56:24and it looks like everything is going to plan.
0:56:24 > 0:56:27So, if this venture into developing is a success,
0:56:27 > 0:56:30what will Ken and Michelle do next?
0:56:30 > 0:56:32We'll try and sell this house.
0:56:32 > 0:56:36If that doesn't work, we'll reconsider and think about renting it out.
0:56:36 > 0:56:40If we do sell it, we'll probably move on to the next one.
0:56:42 > 0:56:45Join us next time for more action from the auction room.
0:56:45 > 0:56:49- Look forward to seeing you then on Homes Under The Hammer. Bye!- Bye!
0:57:10 > 0:57:13Subtitles by Red Bee Media Ltd