0:00:02 > 0:00:03Hello, and welcome.
0:00:03 > 0:00:06Buying at auction can give you the chance to get hold of properties
0:00:06 > 0:00:08that are in need of a bit of work.
0:00:08 > 0:00:11Now, people like to put their own stamp and style on their purchases,
0:00:11 > 0:00:14and hopefully make a bit of a profit along the way.
0:00:14 > 0:00:17And you might be able to do that buying your home under the hammer.
0:00:41 > 0:00:45We love the buzz and the excitement of an auction room -
0:00:45 > 0:00:48you can really sense the hope and frustration in the air.
0:00:48 > 0:00:52Yes, and you never know what's going to happen until the final seconds.
0:00:52 > 0:00:55So, what's tempted the buyers on today's show?
0:00:56 > 0:00:59Fulham in London has always been somewhere to pick up a hot property,
0:00:59 > 0:01:01but this one beats them all.
0:01:01 > 0:01:04Industrial strength heating, phwoar!
0:01:04 > 0:01:09I first saw this Southampton property in 2008
0:01:09 > 0:01:12and warmed to it straightaway.
0:01:12 > 0:01:15I love it, let's hope there's loads of character inside.
0:01:16 > 0:01:21And this Derby house might have come with a cool £52,000 guide price,
0:01:21 > 0:01:23but I'd tread carefully...
0:01:23 > 0:01:25FLOORBOARDS CREAK
0:01:25 > 0:01:26Oh, dear.
0:01:27 > 0:01:31These properties are being sold at auction and we'll find out
0:01:31 > 0:01:35- who bought them and what they paid for them when they went under the hammer.- It's yours.
0:01:40 > 0:01:44I'm in the affluent area of Fulham in southwest London.
0:01:44 > 0:01:47It's home to two Premiership football clubs - Fulham and Chelsea -
0:01:47 > 0:01:50who, over the years,
0:01:50 > 0:01:53have had a few Derby Day pitch battles, and I'm sure the lot
0:01:53 > 0:01:59I'm here to see would be in the Premiership of auction properties.
0:01:59 > 0:02:02It's huge, so it's going to be attacking you on all fronts.
0:02:06 > 0:02:11This auction lot is in fact two separate houses, which have been subdivided into six flats.
0:02:11 > 0:02:14They may look elegant from the outside,
0:02:14 > 0:02:17but were until recently a council hostel.
0:02:17 > 0:02:20The properties are leasehold with 50 years remaining,
0:02:20 > 0:02:25and the guide price was a whopping £525,000.
0:02:29 > 0:02:34So through the front door and the entrance foyer into the first flat,
0:02:34 > 0:02:37and, well, not a bad-sized space.
0:02:37 > 0:02:39Actually, it's a bedsit,
0:02:39 > 0:02:42but high ceilings, which is always a good thing.
0:02:42 > 0:02:46Clearly kitchen - ha! - in need of a bit of tender loving care.
0:02:46 > 0:02:50Thankfully the bathroom is slightly better and it's a good size.
0:02:50 > 0:02:53But as starting points go, not bad.
0:02:56 > 0:02:59So onwards and upwards to the first floor where there are
0:02:59 > 0:03:04another two flats, one on either side of the stairs.
0:03:04 > 0:03:08So, a similar layout on the left-hand side of the top floor,
0:03:08 > 0:03:13but on the right-hand side of the top floor it kind of gets a bit complicated.
0:03:13 > 0:03:18Another good-sized flat, but the issue here is this is actually
0:03:18 > 0:03:23a flying freehold - that could introduce a few complications.
0:03:23 > 0:03:27This flat sits above an office which belongs to
0:03:27 > 0:03:29the next-door property -
0:03:29 > 0:03:34that's a flying freehold, when part of one property extends over another.
0:03:34 > 0:03:36It can make a mortgage difficult to obtain,
0:03:36 > 0:03:44so the leaseholder will want to speak to the freeholder to make sure there are no complications here.
0:03:46 > 0:03:52And we're not done yet - down in the basement there's yet another flat, making four in total.
0:03:58 > 0:04:06Well, all good so far, but in case you'd forgotten, there's a whole extra house to see yet.
0:04:10 > 0:04:16Next door there's more of the same - a flat on the first floor and another one in the basement.
0:04:17 > 0:04:20On the ground floor though, things start hotting up.
0:04:22 > 0:04:26In a place like this, one of the big considerations is going to be the central heating
0:04:26 > 0:04:29and hot water supply, very expensive to replace,
0:04:29 > 0:04:33but in this case, not a problem - it's all been done and look at this.
0:04:33 > 0:04:35Industrial strength heating, phwoar!
0:04:37 > 0:04:39# It's getting hot in here
0:04:39 > 0:04:44- # So take off all your clothes - I am getting so hot... #
0:04:47 > 0:04:50And if that's not enough to get you hot under the collar,
0:04:50 > 0:04:56there's also some office space on the ground floor that could be turned into one more flat.
0:04:56 > 0:05:01At the moment the room feels rather drab and dreary, but since we're in
0:05:01 > 0:05:05one of London's most sought-after areas, transforming these dingy hostel bedsits
0:05:05 > 0:05:11into stunning studio apartments might well be worth the challenge.
0:05:11 > 0:05:15They also have planning permission already guaranteed to be turned into two houses.
0:05:15 > 0:05:19The guide price for this place was £525,000.
0:05:19 > 0:05:22I invited a local estate agent to give his opinion.
0:05:22 > 0:05:25First impressions are, wow - a lot of work,
0:05:25 > 0:05:29but also a huge amount of potential in terms of the location.
0:05:29 > 0:05:32It's just getting it right for what your own purpose is.
0:05:32 > 0:05:36If I had bought this, I'd be looking at keeping them all as studios, rent
0:05:36 > 0:05:39them out, possibly make them one-bedrooms and do the same.
0:05:39 > 0:05:43They're in the right layout, they just need a little bit of TLC and
0:05:43 > 0:05:47then obviously people with the location would be delighted to live here.
0:05:47 > 0:05:51With a top quality refurbishment, how well could the flats do on the rental market?
0:05:51 > 0:05:56I don't think you'd have any problems getting these at £750 per month per unit.
0:05:58 > 0:06:05So six flats at £750 a month is a total monthly income of £4,500.
0:06:05 > 0:06:06What about sell-on values?
0:06:08 > 0:06:13I think you'd be looking at £175,000 up to the £200,000.
0:06:13 > 0:06:20Those figures could mean a combined resale value of as much as £1.2 million.
0:06:22 > 0:06:26Well, a real double bonus for this place, two properties and the chance
0:06:26 > 0:06:29to double your money, but don't underestimate the amount of work
0:06:29 > 0:06:34it's going to take, so it's probably going to be a developer that took it on, when it went to the auction.
0:06:36 > 0:06:40600 on this, where do you wish to start, I think it's worth six?
0:06:40 > 0:06:44Standing up 500, 505 anywhere?
0:06:44 > 0:06:49505, 510, 515...
0:06:49 > 0:06:53520, 520...525.
0:06:55 > 0:06:59At 525, madam. 530.
0:06:59 > 0:07:03Despite the slow start, this hot property was off and running.
0:07:03 > 0:07:07Eventually, the bidding was between two determined parties.
0:07:07 > 0:07:10683. 684, 685...
0:07:10 > 0:07:14686, 687...
0:07:14 > 0:07:19688, 689... 690?
0:07:19 > 0:07:22690, you can't stop on 89!
0:07:22 > 0:07:26689 with the gent on my right...
0:07:26 > 0:07:30690? Must be worth it, if not it's going at 689. Anyone else?
0:07:30 > 0:07:34That's 690... 691, 692...
0:07:34 > 0:07:41693, 694... 695, 696...
0:07:41 > 0:07:47697, 698, 699, 700...
0:07:47 > 0:07:49701, 702... 703?
0:07:51 > 0:07:59702 with you, first time, second time, third and last time if you're all done...
0:07:59 > 0:08:00Sold, 702, well done.
0:08:00 > 0:08:08After a titanic struggle, the triumphant bidder was Stephanie with her bid of £702,000.
0:08:08 > 0:08:12Stephanie actually works next door
0:08:12 > 0:08:15from where she runs her marketing company.
0:08:15 > 0:08:18She's had her eye on these properties for some time.
0:08:18 > 0:08:21# We can do it, we can do it
0:08:21 > 0:08:25# We can do it even better with broken heels. #
0:08:25 > 0:08:27Stephanie, congratulations.
0:08:27 > 0:08:30- Thank you, Martin. - So tell me why you wanted to buy it.
0:08:30 > 0:08:32I bought the building next door 13 years ago,
0:08:32 > 0:08:37and for the last 13 years I've been trying to persuade the council to sell me the lease.
0:08:37 > 0:08:41So when it went up for auction with residential planning permission it was a no-brainer.
0:08:41 > 0:08:45After 13 years it would have been sad not to get this building, really sad,
0:08:45 > 0:08:47and I would have had to sit next door to it every day
0:08:47 > 0:08:49watching the building works unfold, so yes, good.
0:08:49 > 0:08:52You would have gone mad, basically.
0:08:52 > 0:08:54I think I would've had to move offices!
0:08:54 > 0:08:56The day you got it then, how did you feel?
0:08:56 > 0:09:01Scared, elated, and I was approached immediately after
0:09:01 > 0:09:05the auction with an incremental bid to sell it on, so very happy.
0:09:05 > 0:09:08- Tell me more.- For a significant amount of money more.- How much?
0:09:08 > 0:09:10- I can't tell you that. - Why can't you tell me?
0:09:10 > 0:09:14More than £150,000 more than I paid.
0:09:14 > 0:09:15What, the day after?
0:09:15 > 0:09:18The day of - two minutes after I bought it.
0:09:18 > 0:09:21Well, why didn't you take the £150,000 there and then?
0:09:21 > 0:09:25Because there's more value in developing this as it is, obviously.
0:09:25 > 0:09:30- Money in the bank though. - Mmm, speculation, yes.
0:09:30 > 0:09:34Obviously it's leasehold, does that affect you?
0:09:34 > 0:09:36I own the freehold so I'll marry the freehold and leasehold.
0:09:36 > 0:09:39- You own the freehold of the whole building?- Exactly.- Wow.
0:09:39 > 0:09:44The flying freehold is of no concern now, as Stephanie owns the buildings
0:09:44 > 0:09:47and the land they're built on.
0:09:47 > 0:09:52So what are her plans - to keep them as flats or return them to houses?
0:09:52 > 0:09:55Why are you so excited about this then, what are you going to do to it?
0:09:55 > 0:09:59It's a prime position, it's a great building, I love the building,
0:09:59 > 0:10:02and I think it could be very useful either as houses,
0:10:02 > 0:10:06for which it already has planning permission, or even better for apartments,
0:10:06 > 0:10:09which I'm going to apply for planning permission.
0:10:09 > 0:10:13And perhaps in the future I will marry the buildings I own next door and make a terrace
0:10:13 > 0:10:17- of two-bedroom apartments, which becomes a nice development deal.- Wow, absolutely.
0:10:17 > 0:10:20With a view to doing what, renting or selling them?
0:10:20 > 0:10:24Probably selling them in the long term, perhaps renting in the short term.
0:10:24 > 0:10:26So talk me through exactly what you're going to do then.
0:10:26 > 0:10:30I applied for planning permission for two-bedroom apartments.
0:10:30 > 0:10:35- How many?- Seven, with a couple of studios included, so seven units in total.
0:10:35 > 0:10:41Apply for planning permission for the building next door, my offices, to residential.
0:10:41 > 0:10:47Subject to that, I've also got permission to put an upper floor on the top, and then see what happens.
0:10:47 > 0:10:54- Wow.- Yes.- So this turns it into a huge, huge, huge... - Quite a substantial building, yes.
0:10:54 > 0:10:57In terms of doing this project, let's assume you get
0:10:57 > 0:11:01the planning permission, any idea how much it's going to cost, how long it will take?
0:11:01 > 0:11:06Probably about £300,000 to refurbish the two buildings and I would guess six months maximum,
0:11:06 > 0:11:09taking it at a fairly slow pace.
0:11:09 > 0:11:11So who's going to actually manage the project?
0:11:11 > 0:11:14I've got a project manager who will do it all for me,
0:11:14 > 0:11:17from the planning permission to managing a workforce, but I'll be next door
0:11:17 > 0:11:22as a sort of uber project manager to just make sure the project manager manages the project!
0:11:22 > 0:11:27They are beautiful buildings, I'd like to restore them to something of their previous glory,
0:11:27 > 0:11:32they've been somewhat battered over the years, so it would be interesting to see them come back.
0:11:32 > 0:11:35Stephanie has secured her mortgage and is using savings
0:11:35 > 0:11:38to finance her grand plans for this elegant building.
0:11:38 > 0:11:42Now listen, we haven't talked about one thing, which is the boiler.
0:11:42 > 0:11:44- It is a work of art, is it not?- Yes. - Something to behold.
0:11:44 > 0:11:46The first time I came in here I was amazed by it,
0:11:46 > 0:11:49I thought it might actually be a nuclear force of some kind,
0:11:49 > 0:11:53but we're going to have to put individual central heating units in it anyway.
0:11:53 > 0:11:57- Ah, who wants the boiler? - Well, up to you, make me an offer!
0:11:57 > 0:12:01I'll be round here with my transit van.
0:12:01 > 0:12:04That's an offer I might take you up on, thank you very much, Stephanie.
0:12:04 > 0:12:06- You're very welcome. - Good luck with it all.
0:12:06 > 0:12:09- Nice to meet you. - Thank you very much.
0:12:09 > 0:12:15Well, a bit of a dream result for Stephanie but she's been a long time waiting for it -
0:12:15 > 0:12:19to have the freehold and now the leasehold of the whole building,
0:12:19 > 0:12:21and development potential? Boy, oh, boy,
0:12:21 > 0:12:23it could make her a lot of money.
0:12:23 > 0:12:27But it all hinges on getting that all important planning permission.
0:12:27 > 0:12:30How is she going to get on? Find out later in the show.
0:12:32 > 0:12:38Back in October 2008, I took a trip to Southampton to look not at the sea
0:12:38 > 0:12:43or the boats but at an auction lot that had seen better days.
0:12:43 > 0:12:49This is what I'm here to see, this rather grand-looking property. It's a Georgian mid-terrace
0:12:49 > 0:12:53and it went to auction for a guide of £245,000.
0:12:53 > 0:12:57And I love it. Let's hope there's loads of character inside.
0:13:00 > 0:13:04There's certainly plenty of it outside. This four-storey property is
0:13:04 > 0:13:12Grade 2 listed so it's protected by law and you'd be restricted in what you can do to change inside and out.
0:13:13 > 0:13:18This whole building has been subdivided into two flats, so you
0:13:18 > 0:13:24walk in the front door and up this flight of stairs with this gorgeous original staircase to the top flat.
0:13:24 > 0:13:27Now through here is the sitting room.
0:13:27 > 0:13:32In a Georgian house you'd expect to see panels doors, deep cornicing,
0:13:32 > 0:13:37big feature fireplaces, a ceiling rose, shutters on the windows,
0:13:37 > 0:13:40nine-inch timber floorboards...
0:13:40 > 0:13:46not dusty pink bobbly carpet, woodchip wallpaper, storage heaters.
0:13:46 > 0:13:50I mean, I do love the location, the windows are just beautiful,
0:13:50 > 0:13:56it's got an amazing facade, but what a disappointment inside, there's just no character at all.
0:13:57 > 0:14:00Such a shame, but if you went to town on this place,
0:14:00 > 0:14:05put some features back in the two large bedrooms at the top...
0:14:09 > 0:14:14..and transformed the pokey bathroom and that drab kitchen,
0:14:14 > 0:14:18you could turn it into something really special.
0:14:18 > 0:14:24Even better than that, you could reinstate both flats as one magnificent house.
0:14:24 > 0:14:27Time to check out flat two now.
0:14:27 > 0:14:31Sadly the entrance isn't as imposing, it's at the rear of the property,
0:14:31 > 0:14:34however you do get off-street parking.
0:14:34 > 0:14:38I wonder what the inside has to offer.
0:14:38 > 0:14:42Well, a much bigger kitchen in this flat,
0:14:42 > 0:14:44you could have a table over there.
0:14:44 > 0:14:48You can see it's all been neutrally decorated although there's a bit of
0:14:48 > 0:14:53a strange arrangement where you have to walk past this blocked in staircase to get to the lounge.
0:14:53 > 0:14:58It is a good size, again you've got this beautiful feature window,
0:14:58 > 0:15:04but it's all just a bit bland, bland, bland.
0:15:06 > 0:15:09Down in the basement there's a double bedroom...
0:15:11 > 0:15:14..one single bedroom...
0:15:14 > 0:15:15and a small bathroom.
0:15:15 > 0:15:19Those small windows make them all a bit dingy
0:15:19 > 0:15:22and they're in need of a full refurbishment.
0:15:22 > 0:15:24But there is one big issue with this property.
0:15:24 > 0:15:31The whole property, ie both flats, are under one title on the Land Registry.
0:15:31 > 0:15:36So as far as they're concerned this is still one house.
0:15:36 > 0:15:39Because of this, it would be hard to get a mortgage.
0:15:39 > 0:15:43Now, if you wanted to keep it as flats, you could apply for retrospective planning consent,
0:15:43 > 0:15:48if you can prove it was divided into two separate dwellings sometime ago,
0:15:48 > 0:15:54and then separate titles can be created and the property changed from freehold to leasehold.
0:15:54 > 0:15:58But you would need legal advice and that would cost you.
0:16:00 > 0:16:03Finding proof of division shouldn't be a problem -
0:16:03 > 0:16:06you could probably get that from the council tax records,
0:16:06 > 0:16:10but drawing up separate plans and creating leaseholds is going to be more expensive.
0:16:10 > 0:16:17But it certainly could be worth doing when two-bedroom flats in this area fetch around £175,000.
0:16:19 > 0:16:22This is a lovely period property in a prime location.
0:16:22 > 0:16:25It is rather unfortunate that the flats inside
0:16:25 > 0:16:29lack character, but you can always put back those period features,
0:16:29 > 0:16:31although it can be a pricey exercise.
0:16:31 > 0:16:35There's also the title issue to sort out but I think I've fallen a little
0:16:35 > 0:16:39in love with this one. Will the new owner feel the same?
0:16:39 > 0:16:41Let's find out who bought it at auction.
0:16:44 > 0:16:48Lot number 10, £215,000 is what I'm looking for.
0:16:48 > 0:16:51Somebody start the bidding at 215...
0:16:51 > 0:16:56Gentleman in the back left-hand corner thank you. 217, thank you,
0:16:56 > 0:17:01directly in front of me. 219, I have got. 221.
0:17:01 > 0:17:06223 I have, 225... 227, 229.
0:17:06 > 0:17:10231, 231 I've got.
0:17:10 > 0:17:15233... 235, 237? 237.
0:17:15 > 0:17:21238, 238 now bid against you. 239, 240...
0:17:21 > 0:17:25241, left-hand corner. 242 here in the front.
0:17:25 > 0:17:32243, 244... 245, 246...
0:17:32 > 0:17:35247, he's made that bid. 248 here.
0:17:35 > 0:17:40£249,000, is what I now need. 249 - he's nodding. 250?
0:17:40 > 0:17:45250 is here. £250,000... 251?
0:17:45 > 0:17:47Shake of the head.
0:17:47 > 0:17:52Anywhere else in the room? Last chance, sir? £250,000 here.
0:17:52 > 0:17:58£250,000 for the first, £250,000 for the second...
0:17:58 > 0:18:02£250,000 for the third and final time.
0:18:03 > 0:18:07Your property, sir, well done. Your number, please.
0:18:07 > 0:18:10Robin made that successful bid of £250,000.
0:18:10 > 0:18:16He was just on the right side of that 3 per cent stamp duty threshold -
0:18:16 > 0:18:21one penny more and he'd have ended up having to pay an extra 5,000.
0:18:21 > 0:18:24He was at the auction with his wife Sue.
0:18:24 > 0:18:27In the last 20 years they've been buying and developing property,
0:18:27 > 0:18:32and now their son Chris, who's a trained cabinetmaker, has joined the business.
0:18:34 > 0:18:38Guys, congratulations, you must be so pleased you got this at auction day.
0:18:38 > 0:18:43Extremely pleased. We are very enthusiastic about character properties like this
0:18:43 > 0:18:47and keen to try and restore it to its former glory.
0:18:47 > 0:18:50As you can see, most of that's been taken away.
0:18:51 > 0:18:53With 20 years' property experience,
0:18:53 > 0:18:57Robin's taking full advantage of the depressed market at the moment.
0:18:57 > 0:19:00He's bought almost a flat a month for the last seven to
0:19:00 > 0:19:04eight months and has now acquired this imposing Georgian house,
0:19:04 > 0:19:08but what are they going to do with it?
0:19:08 > 0:19:12It can either be two fabulous flats or a fabulous house.
0:19:12 > 0:19:15It would be nice to get it really traditionally back
0:19:15 > 0:19:19as a house and they're very scarce, obviously, Georgian townhouses now.
0:19:19 > 0:19:24It depends on the finances,
0:19:24 > 0:19:27I think initially we'll have it as two flats
0:19:27 > 0:19:30and try and get some rental income to cover the loan interest.
0:19:30 > 0:19:36We'll do a makeover on the upstairs flat so we can let that as soon as possible,
0:19:36 > 0:19:39not necessarily do the full restoration,
0:19:39 > 0:19:42but the downstairs flat we'll focus on here,
0:19:42 > 0:19:45we'll fit a new kitchen in here, all the floorings,
0:19:45 > 0:19:50probably put gas central heating and the fireplaces back in, and suchlike.
0:19:52 > 0:19:55The family may still decide to reinstate this as one house.
0:19:55 > 0:20:00For that reason, they're not planning to change the title deeds just yet.
0:20:00 > 0:20:03Instead, they want to spend around £5,000
0:20:03 > 0:20:08on a quick makeover upstairs and get that rented out within about a month.
0:20:08 > 0:20:13They'll spend a further £15,000 and three months on the downstairs to get
0:20:13 > 0:20:16some character features back into the place.
0:20:16 > 0:20:18It's Mum's job to sort out the design.
0:20:18 > 0:20:22I just want to put it back as it was.
0:20:22 > 0:20:26It seems such a shame that a lovely building, a period listed building,
0:20:26 > 0:20:29has been left to end up like this in such an awful state.
0:20:29 > 0:20:32So your gut instinct when you first walked into this property,
0:20:32 > 0:20:36did you think, "I would love to turn this into a family house"
0:20:36 > 0:20:39or "This would be a great rental return, two flats"?
0:20:39 > 0:20:42No, my first instinct was I'd love to live here.
0:20:42 > 0:20:44- Really?- That was my first thought.
0:20:44 > 0:20:48I just love the building and put it back to a family home, but then
0:20:48 > 0:20:51I get brought back to earth by Rob, and he says,
0:20:51 > 0:20:54"No, we've got to finance this so we have to bring it down,
0:20:54 > 0:20:58"rent one flat, we can do one up, we've got to finance this,
0:20:58 > 0:21:01"you know, it's not that straightforward."
0:21:01 > 0:21:04What do you know about the period building, have you done any research at all?
0:21:04 > 0:21:09I've been to the city archives department and looked through all the old Kelly's Directories
0:21:09 > 0:21:12and things like that. It's been lots of different things over the years,
0:21:12 > 0:21:16it started out life as a single home with servants living in the basement
0:21:16 > 0:21:21and originally it was set out by somebody called Laishley, who was a developer in the area.
0:21:21 > 0:21:23This was sold as lots at auction.
0:21:23 > 0:21:26Which is incredible, it's done the full circle!
0:21:26 > 0:21:29Here you are buying it as a house at auction.
0:21:29 > 0:21:33It was fascinating to find that, and actually see the plot marked on here
0:21:33 > 0:21:35and it actually had a huge garden.
0:21:35 > 0:21:38- Sue, good luck, I can see how passionate you are. Well done.- Thank you.
0:21:40 > 0:21:44That was in October 2008, and at that time they planned a quick
0:21:44 > 0:21:48refurbishment on the top floor flat for a budget of about £5,000.
0:21:48 > 0:21:52But when we first returned 10 months later, their plans had
0:21:52 > 0:21:57changed and the speedy refresh had turned into a full-scale renovation.
0:21:59 > 0:22:03After all the effort of stripping all that wallpaper, discovered there
0:22:03 > 0:22:08was some plaster that was damaged that really needed re-plastering,
0:22:08 > 0:22:11and thought this is crazy, we might just as well do the whole thing,
0:22:11 > 0:22:14just go for it and do it properly.
0:22:14 > 0:22:18Sue and Robin were determined to restore some character to this listed building,
0:22:18 > 0:22:24so the top floor flat had been transformed with new flooring, coving, and period-style details.
0:22:26 > 0:22:30The kitchen and bathroom had been given a luxury refit.
0:22:38 > 0:22:44But there was still plenty more to do. Having set the standard with the upstairs flat, the challenge
0:22:44 > 0:22:52was to restore and revive the rest of the building. We'll see how all their hard work paid off later in the show.
0:22:54 > 0:22:58Coming up, on a trip to Derby, I found a house that will take a bit of straightening out.
0:23:00 > 0:23:02That's not very good, is it?
0:23:03 > 0:23:07It's been over two years since we last saw this Southampton property,
0:23:07 > 0:23:09and it's been a real labour of love.
0:23:09 > 0:23:12We've tried to bring back some of the life to the place.
0:23:14 > 0:23:18But first, back in Fulham, is Stephanie counting the cost
0:23:18 > 0:23:21of taking on such a large flat conversion?
0:23:21 > 0:23:23Seven figures spent very happily.
0:23:28 > 0:23:32Let's return to Fulham in London, and this elegant late Victorian building.
0:23:32 > 0:23:37The exterior was stunning, but, after years as a council hostel,
0:23:37 > 0:23:39the interior was tired and tatty.
0:23:41 > 0:23:45The auction lot consisted of two houses subdivided into six flats.
0:23:45 > 0:23:49It was sold for £702,000 to Stephanie,
0:23:49 > 0:23:54who runs her own marketing company from the building she owns next door.
0:23:54 > 0:23:58She'd had her sights set on the property for some time.
0:24:01 > 0:24:04I bought the building next door 13 years ago,
0:24:04 > 0:24:09so when it went up for auction with residential planning permission it was a no-brainer.
0:24:10 > 0:24:14Stephanie was intending to turn these shabby bedsits into seven super chic apartments,
0:24:14 > 0:24:23so we returned 20 months later to see if this development is progressing according to plan.
0:24:29 > 0:24:34It might look a mess, but Stephanie's been thinking big.
0:24:34 > 0:24:37She has come up with a much larger scheme for this building,
0:24:37 > 0:24:41which has meant ripping out the interior and starting from scratch -
0:24:41 > 0:24:45even the lovely industrial boiler's gone.
0:24:45 > 0:24:47The building has pretty much been gutted,
0:24:47 > 0:24:50all the walls have been taken out, a lot of the ceilings have
0:24:50 > 0:24:54been taken out and all of the utilities have gone, so it pretty much is a shell.
0:24:57 > 0:25:01Stephanie's been working closely with her architects to apply for
0:25:01 > 0:25:05planning permission, but it's taken a lot longer than she'd first hoped.
0:25:05 > 0:25:09We bought the property with planning permission for two family-sized houses,
0:25:09 > 0:25:11we then applied to put on an extra floor
0:25:11 > 0:25:15and changed the planning permission to nine one-bedroomed apartments,
0:25:15 > 0:25:18which took us a while, but we got that about a year ago.
0:25:19 > 0:25:24So Stephanie and her architects have got planning permission for two one-bedroom flats
0:25:24 > 0:25:28on the basement level. At the back, extensions will be built
0:25:28 > 0:25:31for the kitchens, which give access to private patio areas.
0:25:31 > 0:25:35On the ground floor there will be a further two one-bedroom
0:25:35 > 0:25:38apartments with open plan living and kitchen areas.
0:25:40 > 0:25:45At the back will be the bedrooms, which will have access to balconies.
0:25:47 > 0:25:53On the first floor, Stephanie will have a further three one-bedroom apartments.
0:25:53 > 0:25:57The two apartments on the basement floor will have fantastic gardens,
0:25:57 > 0:26:00which are going to be glassed over with conservatories
0:26:00 > 0:26:03so they'll look really lovely, and then the balconies,
0:26:03 > 0:26:06a lot of them have balconies on the outside
0:26:06 > 0:26:09where you can place a barbecue, catch a few rays in the summer,
0:26:09 > 0:26:12and then the bathrooms are going to be particularly lovely.
0:26:12 > 0:26:16We've spec'd some really high quality beautiful white Italian sanitary ware.
0:26:16 > 0:26:17Stephanie's got an eye for detail
0:26:17 > 0:26:22and plans to appeal to the trendsetters of this fashionable area with a high spec finish.
0:26:22 > 0:26:26Her upmarket tastes have taken her plans through the roof.
0:26:26 > 0:26:29The new extension in the attic space will create
0:26:29 > 0:26:33two extra one-bedroom apartments, so will maximise her return
0:26:33 > 0:26:37on what will surely be a lofty investment.
0:26:37 > 0:26:40In terms of the overall budget, it's going to be into seven figures,
0:26:40 > 0:26:44which is a really exciting and slightly scary figure.
0:26:44 > 0:26:49However, we anticipate that we're going to make quite a good return on that figure as well.
0:26:49 > 0:26:52So seven figures spent very happily.
0:26:52 > 0:26:58So Stephanie's spending more than £1 million on renovating her purchase.
0:26:58 > 0:27:02To ensure she is getting a premium price for her prestige development,
0:27:02 > 0:27:05she's been involved every step of the way.
0:27:05 > 0:27:10Although progress has been slow, her belief and her vision has been unwavering.
0:27:10 > 0:27:12# Don't stop believing... #
0:27:19 > 0:27:21It's been a real labour of love.
0:27:21 > 0:27:24I worked very closely with the architect and the planners and have
0:27:24 > 0:27:27personally spec'd every single item in the apartments,
0:27:27 > 0:27:32from socket covers to window architraves to balconies.
0:27:32 > 0:27:36So I have a real good working knowledge of all the apartments, and a real love for them.
0:27:36 > 0:27:38But this property is full of surprises.
0:27:38 > 0:27:42Remember that flat with the flying freehold?
0:27:42 > 0:27:46Well, whilst waiting for planning permission for the rest of the building,
0:27:46 > 0:27:49Stephanie decided to try her wings on the rental market.
0:27:49 > 0:27:56She gave the overhanging flat a quick refurbishment and has been letting it out for a year.
0:27:56 > 0:28:00The flat is currently empty and, I must say, if this is Stephanie's
0:28:00 > 0:28:05idea of a temporary makeover, I can't wait to see the real thing.
0:28:05 > 0:28:10She's appointing her building contractors very soon and expects the work to take nine months.
0:28:10 > 0:28:14I'm really looking forward to getting towards the finishing stages
0:28:14 > 0:28:17and just to see how a building which is really iconic in my view can be
0:28:17 > 0:28:22restored to its former glory, and then obviously just seeing some very happy people living here I hope.
0:28:24 > 0:28:28We've invited the estate agent who viewed the property previously
0:28:28 > 0:28:31to give us his opinion on the work so far.
0:28:31 > 0:28:35Second time in the property, you can see they've made a lot of changes.
0:28:35 > 0:28:39It's really opened up and you can get a good sense of the space, it's very good.
0:28:39 > 0:28:44Having perused the plans, what does he make of the layout here now?
0:28:44 > 0:28:48I like what they're doing, in them all being one-bedrooms, I think it
0:28:48 > 0:28:52will work very well for the location and for the area.
0:28:52 > 0:28:56And what about extending up into the mansard roof?
0:28:56 > 0:29:01Any option that you get to extend going up into the mansard will obviously add value.
0:29:01 > 0:29:05It's a great way to increase your internal space and if you can get
0:29:05 > 0:29:08two extra units out of it then it will definitely increase value.
0:29:08 > 0:29:10That could be good news for Stephanie -
0:29:10 > 0:29:14remember, she bought the building for £702,000
0:29:14 > 0:29:19and her budget for the work has shot past the £1 million mark.
0:29:19 > 0:29:24But if she sells on, what price does the estate agent think each property could achieve?
0:29:24 > 0:29:27Looking at an average for all the flats in the building,
0:29:27 > 0:29:30I will be working at an average of £300,000 for each unit,
0:29:30 > 0:29:33which brings the total building up at a value of £2.7 million.
0:29:33 > 0:29:38That's an impressive figure, but Stephanie's done her research, so does she agree with that valuation?
0:29:40 > 0:29:43I think that's a little low as a valuation. We've obviously
0:29:43 > 0:29:46done our research and taken some other valuations
0:29:46 > 0:29:50and we'd be looking at a significantly larger sum than that.
0:29:50 > 0:29:54Stephanie seems to have set her sights high.
0:29:54 > 0:29:58She's an impressive lady running her own busy marketing company
0:29:58 > 0:30:01whilst also managing this ambitious development.
0:30:01 > 0:30:04I'm hoping that once we appoint the contractors,
0:30:04 > 0:30:08I'll have some downtime, but I expect it to be full on thereafter for the next year or so.
0:30:09 > 0:30:13While Stephanie looks forward to a little downtime,
0:30:13 > 0:30:16I look forward to coming back and seeing the finished properties.
0:30:20 > 0:30:26I'm in Ulverston, a large residential suburb of Derby in the East Midlands.
0:30:26 > 0:30:31One-and-a-half miles from the city centre and I'm here to see a three-bed mid-terrace
0:30:31 > 0:30:35at a going price of £52,000, and this is it.
0:30:35 > 0:30:39Good news - it's got double glazing. I noticed something else as well,
0:30:39 > 0:30:41these plastic plugs. That indicates some kind
0:30:41 > 0:30:44of an injection damp-proof course has been put in.
0:30:44 > 0:30:49That's good, hopefully the damp didn't cause too many problems inside.
0:30:49 > 0:30:51There's only one way to find out.
0:30:51 > 0:30:54There's also apparently a relatively new roof too, a bonus,
0:30:54 > 0:30:59so let's hope any issues the house may have had with damp are now behind it.
0:31:00 > 0:31:02Oooh!
0:31:02 > 0:31:04Oh, dear, straightaway it feels to me like...
0:31:04 > 0:31:06CREAKING
0:31:08 > 0:31:12..the floor in that corner of the room here is, er,
0:31:12 > 0:31:15well, as you can see, terribly unstable.
0:31:15 > 0:31:17That damp looks like it might have caused a problem
0:31:17 > 0:31:20and more indications of damp there, and it's still quite damp.
0:31:20 > 0:31:23Oh, dear, that as well.
0:31:23 > 0:31:28There's a crack all the way up the wall there, as you can see,
0:31:28 > 0:31:32somebody's tried to fill it in with, basically, simple filler
0:31:32 > 0:31:35and, over time, it's actually cracking more,
0:31:35 > 0:31:40which is quite worrying because it's obviously continuing and getting worse.
0:31:40 > 0:31:44But trying to sum up a positive thing to say, good size for a lounge.
0:31:45 > 0:31:48Well, try as I might to like this property,
0:31:48 > 0:31:52I'm really struggling to get into the swing of what's going on here.
0:31:52 > 0:31:53DOOR STICKS
0:31:53 > 0:31:55Well, that's not very good, is it?
0:31:55 > 0:31:58That's the door from the rear sitting room into the kitchen
0:31:58 > 0:32:02but as you can see, that doesn't really shut.
0:32:02 > 0:32:09That is a classic indication that there is some settlement in the doorframe or whatever, not good.
0:32:09 > 0:32:12But continuing through the property into the kitchen,
0:32:12 > 0:32:17it's not a bad size, although as you can see the units are fairly tacky.
0:32:17 > 0:32:20OK, need to replace the kitchen. It's the settlement...
0:32:20 > 0:32:25In fact, if you look at that doorframe you can see it's all over the place.
0:32:25 > 0:32:28Let's see if we can see anything outside.
0:32:28 > 0:32:29Oh, hang on a minute.
0:32:30 > 0:32:34Even that doorframe doesn't shut properly. It's not good.
0:32:39 > 0:32:42Here at the rear of the property, a pretty decent-sized garden.
0:32:42 > 0:32:45It needs a bit of tender loving care, some new fence there.
0:32:45 > 0:32:51Largely paved, which is good news, low maintenance if you're going to rent this place out,
0:32:51 > 0:32:52which is a big tick in the box.
0:32:52 > 0:32:55While we're here, you can see the rear of the property,
0:32:55 > 0:33:03largely rendered, so I can't actually see if there are any cracks on the outside as well,
0:33:03 > 0:33:07but there do seem to be lots of places where these various bits of piping have been leaking.
0:33:07 > 0:33:09You can see the staining.
0:33:09 > 0:33:12So maybe that's had a bad effect inside.
0:33:12 > 0:33:17There's also a lot of drains out here, maybe they need investigating.
0:33:17 > 0:33:21It's all pointing to my mind... to getting a surveyor round.
0:33:36 > 0:33:39Upstairs there are two decent sized double bedrooms at the front
0:33:39 > 0:33:43and at the back is bedroom number three.
0:33:43 > 0:33:46Well, it is the third bedroom but it's not really that usable,
0:33:46 > 0:33:51because the main toilet and bathroom is accessed through it, so not ideal.
0:33:51 > 0:33:55Your solution here is probably put some kind of corridor in, I don't think you can do that.
0:33:55 > 0:33:59I think you going to end up losing this bedroom or just accepting it like it is.
0:33:59 > 0:34:01While I'm up here, more examples...
0:34:03 > 0:34:07..that the house isn't in that good a state.
0:34:12 > 0:34:18This place really does trouble me, there are layout issues,
0:34:18 > 0:34:22some cracking doors, wonky doorframes, and some signs of damp.
0:34:22 > 0:34:27To be honest, at present, it's only that £52,000 guide price
0:34:27 > 0:34:29which makes it tempting at all.
0:34:29 > 0:34:33But does the auctioneer who sold it think there's anything structural
0:34:33 > 0:34:34to worry a buyer here?
0:34:38 > 0:34:41As you glance round, it's evident there's a few cracks in the place.
0:34:41 > 0:34:43I don't think it's anything
0:34:43 > 0:34:47that's not routine there - an older property that's been here for a long time.
0:34:47 > 0:34:52It's not going anywhere. It's just a question of filling them in and redecorating.
0:34:52 > 0:34:53I'm still a little concerned,
0:34:53 > 0:34:58but what about the other negatives like the bedroom/bathroom access issue?
0:34:58 > 0:35:03I don't think this house is really ever going to be anything more than a two-bedroomed house.
0:35:03 > 0:35:06The third bedroom you walk through to the bathroom
0:35:06 > 0:35:09is never really going to be a bedroom unless it was a nursery.
0:35:09 > 0:35:14You could put a computer in there, it's usable space, but I think it's only ever going to be two bedrooms.
0:35:14 > 0:35:22Would this make a better buy to let or to sell, what are rental and resale values like in this area?
0:35:22 > 0:35:27There's a lot of investment property around here, simply because it's relatively low cost to buy.
0:35:27 > 0:35:34So there is a rental market, yes, and I would say its value would be around £475 per calendar month.
0:35:34 > 0:35:40If this was done up and for sale, I would say the asking price would probably be around £85,000
0:35:40 > 0:35:41and you'd hope get 80.
0:35:41 > 0:35:46There's a finite value to a property round here and they don't sell that readily,
0:35:46 > 0:35:49that's why many of them are bought for rental purposes.
0:35:49 > 0:35:56Well, that guide price of £52,000, certainly offers scope for a good yield on this one
0:35:56 > 0:35:57as a rental opportunity.
0:35:57 > 0:36:02But I am a little bit concerned about what a surveyor would find if he checked this place out.
0:36:02 > 0:36:08Let's hope whoever bought it had a survey before they did so. Let's go to the auction.
0:36:12 > 0:36:15Tidy little house, ladies and gentlemen,
0:36:15 > 0:36:18good investment material, lot number seven, guide of 52 plus.
0:36:18 > 0:36:24Where do you want to be on this one, 48,000? 48 is bid here, thank you, that's £48,000.
0:36:24 > 0:36:2848,500, at 48,500.
0:36:28 > 0:36:3449, 495. £50,000.
0:36:34 > 0:36:3751, 51, 52 is bid.
0:36:37 > 0:36:44At 52, 53? 53? 52 I have here. I'll take 500?
0:36:44 > 0:36:49At £52,000 it's going to get sold, at 52,000 for the first time,
0:36:49 > 0:36:5452,000 for the second time, third and last opportunity, any higher bid?
0:36:54 > 0:36:57Sold at £52,000, thank you.
0:36:57 > 0:37:05The final bid of £52,000, spot on the guide price, was made by Leicester-based businessman, Ramnik.
0:37:05 > 0:37:09He's director of his own babywear company, he and his wife, Veena,
0:37:09 > 0:37:15also have a number of rental properties, so they're no strangers to property purchasing.
0:37:15 > 0:37:19- Veena, Ramnik, lovely to meet you both, congratulations.- Thank you.
0:37:19 > 0:37:22So have you bought some investment property like this before?
0:37:22 > 0:37:29Not the old ones, we bought a house in new build, this is our first old property that we have bought.
0:37:29 > 0:37:32Why have you avoided older properties up until now?
0:37:32 > 0:37:39Never got round to it, actually, we just started with new properties and it was working.
0:37:39 > 0:37:41So I just kept at it really.
0:37:41 > 0:37:46But in the current climate, Ramnik has decided that renovating older properties
0:37:46 > 0:37:50would give him a better return on his investment.
0:37:50 > 0:37:56So this house is something of a trial run, a new sensation, if you like.
0:37:56 > 0:38:01It was the £52,000 guide price that attracted them,
0:38:01 > 0:38:05as they felt, financially at the least, that it wasn't a massive risk.
0:38:05 > 0:38:08But there's a big difference between buying a new build
0:38:08 > 0:38:11which comes with guarantees and compliance with regulations,
0:38:11 > 0:38:14and an old property with no such reassurance.
0:38:14 > 0:38:18So this house particularly, what are you going to do to it?
0:38:18 > 0:38:24Well, when we had it, I didn't think that we might have to do that much to it
0:38:24 > 0:38:29but, since then, I think we might be replacing a few items,
0:38:29 > 0:38:37probably doing the kitchen, to do as much as I can within the budget that we have in mind.
0:38:37 > 0:38:39Right, what is that budget?
0:38:39 > 0:38:43- I was thinking of about eight grand. - OK.- £8,000.
0:38:43 > 0:38:47There do seem to be some structural problems, don't there?
0:38:47 > 0:38:51- There's a few cracks here and there, have you noticed those?- No.
0:38:51 > 0:38:59I didn't realise they were that bad, I thought they were just minor problems that could be handled.
0:38:59 > 0:39:03We've seen a bit of dampness in one of the bedrooms but, other than that,
0:39:03 > 0:39:05we didn't think it was that bad.
0:39:05 > 0:39:10- Right.- The cracks were there but obviously we thought it might be superficial.
0:39:10 > 0:39:13It might be fine but it's worth getting an expert in to check it out.
0:39:13 > 0:39:16I hope I haven't alarmed Ramnik and Veena too much
0:39:16 > 0:39:20but it makes sense to get a property like this checked over by an expert,
0:39:20 > 0:39:25especially when you're not familiar with the problems common to older buildings.
0:39:25 > 0:39:30The couple have only allocated themselves two to three months to get it ready for tenants
0:39:30 > 0:39:34so they need to be certain there is nothing major to be done
0:39:34 > 0:39:37before starting on the new kitchen and redecoration.
0:39:40 > 0:39:44So after this, then, what's the next project on the horizon?
0:39:44 > 0:39:49Well, if it does work out the way we are planning
0:39:49 > 0:39:55and it lets out, then we'll be thinking of a couple more
0:39:55 > 0:39:57in the area because it seems to be all right.
0:39:57 > 0:40:02Congratulations, good luck with this, and I look forward to seeing how you get on.
0:40:02 > 0:40:04- All the best.- Thank you very much.
0:40:11 > 0:40:14Well, I hate to be the bearer of bad news
0:40:14 > 0:40:18but I think it is really important that Ramnik and Veena know
0:40:18 > 0:40:24that there might be a few more issues with this property than they are expecting.
0:40:24 > 0:40:29How are they going to get on? You can see later in the show.
0:40:31 > 0:40:39Well, finding good trades people is a key to getting a property done up well and on time
0:40:39 > 0:40:43but sometimes people choose to do the work themselves to maximise profit.
0:40:43 > 0:40:48So have today's buyers being getting stuck in or just getting stuck?
0:40:48 > 0:40:56It was back in the autumn of 2008 when I first visited a large Georgian town house in Southampton.
0:40:56 > 0:41:00I say "town house", but it's been converted to two two-bedroomed flats.
0:41:00 > 0:41:07It was not only in need of refurbishment but also crying out for its original features to be restored.
0:41:07 > 0:41:09Step forward Robin, Sue, and their son Chris.
0:41:09 > 0:41:13They bought the building at auction for £250,000
0:41:13 > 0:41:18and hoped they might be the right people to bring it back to life.
0:41:18 > 0:41:20It seems such a shame that a lovely building,
0:41:20 > 0:41:24a period listed building has been left to end up like this
0:41:24 > 0:41:26in such an awful state.
0:41:26 > 0:41:31I'd just love to put it back to a family home but then I get brought back to earth by Rob and he says...
0:41:31 > 0:41:33I think initially we'll have it as two flats
0:41:33 > 0:41:38and try and get some rental income to cover the loan interest.
0:41:38 > 0:41:44We'll do a makeover on the upstairs flat so we can let that as soon as possible,
0:41:44 > 0:41:46not necessarily do the full restoration.
0:41:46 > 0:41:49Initially Robin took the pragmatic approach,
0:41:49 > 0:41:52aiming to get the property earning some return as soon as possible.
0:41:52 > 0:41:55When we first returned 10 months later,
0:41:55 > 0:41:57they had nearly finished the top-floor flat
0:41:57 > 0:42:01and it seemed that Sue may have got her wish after all.
0:42:03 > 0:42:05It was once we started working on it
0:42:05 > 0:42:10and decided that we could make it reasonable to let
0:42:10 > 0:42:14but then we got a bit carried away, interest rates dropped,
0:42:14 > 0:42:19and after all the effort of stripping all that wallpaper and thought, "This is crazy.
0:42:19 > 0:42:25"We might just as well do the whole thing, just go for it and do it properly."
0:42:25 > 0:42:28So the top-floor flat got a full renovation,
0:42:28 > 0:42:33putting back some of those special qualities that make this kind of property shine.
0:42:37 > 0:42:41After that, they pushed on and finished the rest of the flat.
0:42:43 > 0:42:47Now over two years since we first saw it, we're back.
0:42:47 > 0:42:50Have they managed to finish off that downstairs flat
0:42:50 > 0:42:56and restore this old building's original character and create stylish modern open spaces?
0:43:03 > 0:43:08Well, if the quality of the kitchen is anything to go by, it's not half bad.
0:43:12 > 0:43:14There's been rather a drastic change in here.
0:43:14 > 0:43:19The original kitchen was just running along there and then just a huge space,
0:43:19 > 0:43:23so now we've got everything all built in here with a large breakfast bar,
0:43:23 > 0:43:27granite worktops, all the appliances.
0:43:27 > 0:43:31It'll be a large social kitchen rather than dead space in the middle now.
0:43:31 > 0:43:37Son Chris is a cabinetmaker by trade and has used his skills not only to produce the bespoke kitchen
0:43:37 > 0:43:41but to put some character features back into this flat's sitting room.
0:43:45 > 0:43:48We've completely changed everything in here.
0:43:48 > 0:43:52It was pretty awful, replaced the ceilings, all the coving is brand new.
0:43:52 > 0:43:56There was no fireplace there, but one interesting thing we did find
0:43:56 > 0:44:02was a piece of the original skirting board when we actually dismantled all the fireplace.
0:44:02 > 0:44:04So Chris has managed to reproduce that.
0:44:04 > 0:44:07We've actually now got the new high skirting boards, managed
0:44:07 > 0:44:11to run wiring through inside the skirting board as we were doing it.
0:44:11 > 0:44:14Overall I'm really, really pleased with the finish.
0:44:14 > 0:44:21Well, this room might hide some of its modern attributes, but there is no such modesty in the bathroom.
0:44:27 > 0:44:31In this room we've travertine tiles throughout,
0:44:31 > 0:44:36this towel rail and radiator is an auction site bargain,
0:44:36 > 0:44:40the showerhead there, the LEDs there go blue
0:44:40 > 0:44:43when the water is too cold and red when it's too hot,
0:44:43 > 0:44:46it looks really nice.
0:44:46 > 0:44:49Hi-tech might be the order of the day in the bathroom
0:44:49 > 0:44:54but there's still some work needed to finish off the two bedrooms,
0:44:54 > 0:44:57but overall they really are nearly there.
0:44:59 > 0:45:02How did they approach mixing old and new?
0:45:02 > 0:45:06There's a responsibility to some extent with older property.
0:45:06 > 0:45:12There are so many that have been knocked down, demolished, abused, and it's actually been satisfying.
0:45:12 > 0:45:18I think the nicest thing about what we've done here is the fact that we've tried to bring back
0:45:18 > 0:45:24some of the life to the place rather than being just a bland, boring house with no features.
0:45:24 > 0:45:30This blend of old and new is particularly apparent in the two-bedroom top floor flat.
0:45:30 > 0:45:36Here fireplaces were reinstalled along with the appropriate architraving and skirting boards.
0:45:39 > 0:45:42In addition, for the time being at least,
0:45:42 > 0:45:46it's become a home for son Chris while the work was carried out downstairs.
0:45:49 > 0:45:53How did the family delegate the tasks that were needed for this renovation?
0:45:53 > 0:45:58Chris is naturally a carpenter and cabinetmaker and suchlike, he's done the majority of that.
0:45:58 > 0:46:04Permanently been on site doing a lot of the work, from coving, doors, kitchen.
0:46:04 > 0:46:10I've done more general things, mainly a bit of plumbing, most of the electrical work.
0:46:10 > 0:46:16I'm sourcing everything, finding all the stuff and general dogsbody cleaning up, tidying.
0:46:16 > 0:46:19- General site manager.- Everything, and site manager.
0:46:19 > 0:46:24There are some jobs outstanding, including separate leases for the two flats,
0:46:24 > 0:46:30but as their double renovation comes to an end, even with the amount of work they've put in themselves,
0:46:30 > 0:46:31there's always a cost to pay.
0:46:31 > 0:46:33Probably the total spend is around £60,000 now.
0:46:33 > 0:46:37Partially that's obviously interest over two years with the bank.
0:46:37 > 0:46:41Robin and Sue bought the whole building for £250,000,
0:46:41 > 0:46:45so with £60,000 spent, their total investment on the two flats
0:46:45 > 0:46:47will be about £310,000.
0:46:47 > 0:46:52Has their patience, dedication, and persistence in getting it done well paid off?
0:46:52 > 0:46:55What do to local estate agents reckon?
0:46:57 > 0:46:58I think the changes are great.
0:46:58 > 0:47:02From looking at the property, it's totally unrecognisable.
0:47:02 > 0:47:08The lower ground floor part reno is fine, I like it very, very much.
0:47:08 > 0:47:10The added benefit is off-road parking.
0:47:10 > 0:47:13Both flats are finished to a high standard,
0:47:13 > 0:47:15particularly the kitchen in the ground floor flat.
0:47:15 > 0:47:19A first-time buyer or young professional would love that.
0:47:19 > 0:47:25The upper flat obviously has got a great feeling of space, the high ceilings, that sort of thing.
0:47:25 > 0:47:26Every room is a good size.
0:47:26 > 0:47:31The attention to detail and finish is very good indeed.
0:47:31 > 0:47:33The only issue is lack of parking.
0:47:33 > 0:47:36Ideally the family would sell both properties,
0:47:36 > 0:47:39but if they could just sell one and rent out the other
0:47:39 > 0:47:42that wouldn't be a bad option either.
0:47:42 > 0:47:46I think both flats would probably rent at similar sorts of values,
0:47:46 > 0:47:52one having parking, one not having parking, that particular value would be around £750 per calendar month.
0:47:52 > 0:47:54I think they'll rent very well.
0:47:54 > 0:48:00I believe you're probably talking about £850 per calendar month to £875 per calendar month.
0:48:00 > 0:48:04- Slightly on the low side.- Yes, I would have thought nearer £1,000
0:48:04 > 0:48:06because the rental market is very strong.
0:48:06 > 0:48:11Two years ago I thought they rated about £1,000, as I recall.
0:48:11 > 0:48:15So maybe the rental figures are slightly lower than hoped for
0:48:15 > 0:48:20but with a total investment of around £310,000, could they see any profit if they sold?
0:48:20 > 0:48:27When we returned 14 months ago, a local estate agent gave the top flat
0:48:27 > 0:48:30a value of around £220,000 and estimated the lower flat
0:48:30 > 0:48:37would be worth at least £200,000 when complete, but the market has changed considerably since then.
0:48:37 > 0:48:41The upper floor flat is currently on the market at £209,950,
0:48:41 > 0:48:46which would be my recommended asking price at this moment in time, and try and wait out for a sale.
0:48:46 > 0:48:51This flat, whilst being slightly smaller and on the basement level,
0:48:51 > 0:48:57I'd look to go to market at around £175,000, the plus on this one being that it has got parking.
0:48:57 > 0:49:04Recommends would be... upstairs flat, the bigger property, being about £210,000-£215,000,
0:49:04 > 0:49:08and the smaller property but with the garden and the parking
0:49:08 > 0:49:12I would say we're talking about £185,000-£190,000.
0:49:12 > 0:49:17Upstairs I think that's probably about right, downstairs I think they've probably underestimated,
0:49:17 > 0:49:20knowing exactly what's on the market at the moment.
0:49:20 > 0:49:27I think it was valued about 200 last time, I'm not sure that it would go any lower than that now.
0:49:27 > 0:49:33Well, again they may be slightly disappointed by the valuation,
0:49:33 > 0:49:36but even at the lower values, that could be a profit of 75,000.
0:49:36 > 0:49:40However, over the two years it's taken to do the building
0:49:40 > 0:49:43there has been a significant change in the market.
0:49:43 > 0:49:48So knowing what they know now, would they still have taken on such a considerable challenge?
0:49:48 > 0:49:51I still would have done it, definitely.
0:49:51 > 0:49:53Better than staying at home.
0:50:11 > 0:50:18In the Ulverston district of Derby, a two-cum-three bedroomed terraced house came up for auction.
0:50:18 > 0:50:24Although guided at just £52,000, it did have a few issues -
0:50:24 > 0:50:28cracks, springy floorboards, and possible damp problems.
0:50:28 > 0:50:33For company director Ramnik and his wife Veena this was a step into the unknown.
0:50:33 > 0:50:37So have you bought some investment property like this before?
0:50:37 > 0:50:44Not old ones, we bought a house in new build. This is our first old property that we have bought.
0:50:44 > 0:50:47Sold for £52,000, thank you.
0:50:47 > 0:50:50They paid spot on the guide price of £52,000,
0:50:50 > 0:50:55and armed with an £8,000 budget, contracted the work out to a local firm.
0:50:55 > 0:51:02The Leicester-based couple had their fingers crossed that the cracks and damp weren't major concerns.
0:51:02 > 0:51:05Now, three months later, we're back.
0:51:05 > 0:51:08Not surprisingly, from the street,
0:51:08 > 0:51:13the house hasn't changed much because it was in reasonable condition before
0:51:13 > 0:51:16but what's going on behind that front door?
0:51:16 > 0:51:20They've certainly created a much more welcoming reception room...
0:51:26 > 0:51:29..a warm and inviting dining area...
0:51:31 > 0:51:34..and a terrific new kitchen.
0:51:40 > 0:51:45Looks like Ramnik and Veena have really got into the swing of renovating old properties.
0:51:47 > 0:51:49- Quite enjoyed it actually, didn't we?- Yes, yes.
0:51:49 > 0:51:54We thought we would have more hassle than we had, but it worked out smoothly, didn't it?
0:51:54 > 0:52:00So quite pleased with it, that's why we are excited to try for another one.
0:52:00 > 0:52:05They say a change is as good as a rest and it certainly seems to be the case here.
0:52:07 > 0:52:13Upstairs the two main bedrooms are finished with fresh new fittings and curtains.
0:52:16 > 0:52:21That troublesome third bedroom-cum-study looks much brighter
0:52:21 > 0:52:26and the bathroom has been refurbished, complete with brand-new flooring, toilet and shower.
0:52:26 > 0:52:29But what about the garden?
0:52:29 > 0:52:32Well, when I first saw it, it was in a right mess
0:52:32 > 0:52:36so we cleared the garden and all this fencing,
0:52:36 > 0:52:38it was all damaged and rotten,
0:52:38 > 0:52:43so we've replaced that, including the gate, and really it looks nice.
0:52:43 > 0:52:49So after seeing it, we went further, painted all the walls as well,
0:52:49 > 0:52:53looks a bit better now, that's brilliant. I'm happy with the job.
0:52:58 > 0:52:59It's all looking good
0:52:59 > 0:53:05and luckily it does seem that my worries about some of the structural issues were unfounded.
0:53:09 > 0:53:12There was a major crack on the wall
0:53:12 > 0:53:14so that was a bit of a concern,
0:53:14 > 0:53:19but we found that it turned out all right
0:53:19 > 0:53:23and a new skim and new paint did the job.
0:53:23 > 0:53:25There was nothing major wrong with it.
0:53:25 > 0:53:31Apart from that, we had some problem on the floorboards
0:53:31 > 0:53:33because the floor had sunk down.
0:53:33 > 0:53:39On opening up and taking the floorboards out, we found the joists were all rotten there
0:53:39 > 0:53:43so replaced with new joists and covered with the new flooring there.
0:53:43 > 0:53:48So it was all fine, and something Ramnik's builders could sort
0:53:48 > 0:53:49without too much trouble.
0:53:49 > 0:53:53How much involvement has he had himself here?
0:53:54 > 0:53:58We worked once every other week or something like that.
0:53:58 > 0:54:00Yes, it was once a fortnight
0:54:00 > 0:54:04and I used to follow it up every other day, sort of,
0:54:04 > 0:54:06just to see the progress.
0:54:09 > 0:54:14So a little bit of checking up, a few visits and with Veena sorting out the interior design,
0:54:14 > 0:54:17all Ramnik had to do was provide the money.
0:54:17 > 0:54:20The total we spent, £8,500,
0:54:20 > 0:54:25so £60,500 was, I think, with the legals as well.
0:54:25 > 0:54:30Ramnik and Veena planned to spend around £8,000
0:54:30 > 0:54:32on top of their purchase price of £52,000,
0:54:32 > 0:54:35and it looks like they've pretty much stuck to their budget.
0:54:35 > 0:54:40But have they invested wisely on this, their first renovation project?
0:54:40 > 0:54:44What do two local estate agents think of the work that's been carried out here?
0:54:47 > 0:54:50The work that's been done is very sensible,
0:54:50 > 0:54:52all the boxes have been ticked -
0:54:52 > 0:54:54new kitchen, flooring.
0:54:54 > 0:54:58I think it's the right type of refurbishment for this type of property.
0:54:58 > 0:55:01I think the standard of work has been done to a good standard.
0:55:01 > 0:55:04The kitchen has been fitted to a good level, the bathroom,
0:55:04 > 0:55:07and generally the property has been finished well throughout.
0:55:07 > 0:55:10Although bought as a rental property,
0:55:10 > 0:55:13it's still important for the couple to know
0:55:13 > 0:55:18whether this type of house is a good investment of £60,500.
0:55:18 > 0:55:24I think if the property went on to the market at £79,950, it would sell pretty quickly.
0:55:24 > 0:55:28For property of this type and finish in this area, we would value the property at £80,000.
0:55:28 > 0:55:32Which I feel would be achievable,
0:55:32 > 0:55:36so it's about where I would have expected it.
0:55:36 > 0:55:40I think 80 should be all right.
0:55:40 > 0:55:46So before tax, that could be a healthy resale profit of almost £20,000.
0:55:46 > 0:55:49How would it fare on the all-important rental market?
0:55:49 > 0:55:54The rental market is very strong at the moment, especially in this area,
0:55:54 > 0:55:59I would expect the property would let almost overnight at £450 per calendar month.
0:55:59 > 0:56:02For a rental value for this property in this area I would recommend
0:56:02 > 0:56:04an asking price of £450 per calendar month.
0:56:04 > 0:56:08Dead on, that's exactly what I anticipated.
0:56:08 > 0:56:10We are quite happy with 450.
0:56:10 > 0:56:16£450 a calendar month would generate a very decent yield of nearly 9% per annum
0:56:16 > 0:56:20and certainly makes this new departure worthwhile.
0:56:20 > 0:56:25Now that the kids have grown up, I think we've got a bit of time
0:56:25 > 0:56:28and I think this is quite relaxing
0:56:28 > 0:56:31and we'll take our time in doing what we are
0:56:31 > 0:56:34and hopefully go for a few more.
0:56:43 > 0:56:47With time on their hands and their new-found enthusiasm for renovation,
0:56:47 > 0:56:51it seems this Derby house is likely to be the first of many.
0:56:55 > 0:57:00Well, that's it for now, make sure you join us next time for more Homes Under The Hammer.
0:57:00 > 0:57:03- Looking forward to seeing you then, goodbye.- Goodbye.
0:57:14 > 0:57:17Subtitles by Red Bee Media Ltd
0:57:17 > 0:57:20E-mail subtitling@bbc.co.uk