0:00:02 > 0:00:05Buying property can be a long process.
0:00:05 > 0:00:10- But not when you buy at auction. - You can have the keys in 28 days!
0:00:10 > 0:00:14It can be that quick when you buy your home under the hammer.
0:00:39 > 0:00:44Buying at auction can be a gamble, but not if you do your research.
0:00:44 > 0:00:48Are the buyers today on a winning streak? Here's what they bought.
0:00:49 > 0:00:54'In Dartford, Kent, this semi leaves a lot to be desired.'
0:00:54 > 0:00:58It's extremely dated, and the character stops right here!
0:00:59 > 0:01:06'We return to Derby where, in 2007, we first saw this development plot.'
0:01:06 > 0:01:08It is a bit of a mess.
0:01:09 > 0:01:15'I can't quite make up my mind about this place in Gillingham, Dorset.'
0:01:15 > 0:01:18So, kitchen...or hovel?
0:01:20 > 0:01:23'These properties have been sold.
0:01:23 > 0:01:29'We find out who bought them and what they paid when they went under the hammer.'
0:01:35 > 0:01:38'This is Gillingham,
0:01:38 > 0:01:40'the most northerly town in Dorset.
0:01:40 > 0:01:45'The population has grown, as the place is so well connected.
0:01:45 > 0:01:48'It's only two hours to London by train,
0:01:48 > 0:01:55'and just a few miles from the main trunk road to the rural delights of southwest England.
0:01:55 > 0:02:01'The house I'm here to see is easily accessible from the town centre.'
0:02:01 > 0:02:05So, Gillingham High Street a few minutes that way.
0:02:05 > 0:02:08Shaftesbury is four miles down that road,
0:02:08 > 0:02:13and Sturminster Newton, and miles of Dorset countryside, is down there.
0:02:13 > 0:02:19The road links are undeniably good, but would you want to live right on them?
0:02:19 > 0:02:24This is the house that was up for auction with a guide of £100,000.
0:02:24 > 0:02:27Attractive enough from the outside.
0:02:27 > 0:02:33In need of some work, for sure. I just hope that double glazing does its job.
0:02:33 > 0:02:38# ..On the roundabout of love... #
0:02:38 > 0:02:43'It's not love at first sight, with a roundabout on your doorstep.
0:02:43 > 0:02:46'The lack of on-street parking doesn't help either.
0:02:46 > 0:02:51'Let's hope the inside can stir up some flames of passion.'
0:02:51 > 0:02:55# ..I go round and round On the roundabout of love. #
0:02:56 > 0:03:01This cottage dates back to the 1850s and, by the looks of things,
0:03:01 > 0:03:05I don't think much has been done since then!
0:03:05 > 0:03:09You've got these amazing old flagstones.
0:03:09 > 0:03:15A little bit of work trying to restore them would bring them back.
0:03:15 > 0:03:20You'd need to get working on this woodchip wallpaper all over the walls.
0:03:20 > 0:03:22That needs to come off.
0:03:22 > 0:03:26If you sand these spindles down, they will look lovely.
0:03:26 > 0:03:31And into a room that has been knocked through into one.
0:03:31 > 0:03:33You've got a lovely big space.
0:03:33 > 0:03:36Unfortunately, these fireplaces are not in keeping
0:03:36 > 0:03:39with the period of the property.
0:03:39 > 0:03:47But you've got a good room to work with so, loads to do, but you've got a lot of character to play with.
0:03:49 > 0:03:54'There is charm, if you can see past the half-finished work here.
0:03:57 > 0:04:01'There's a lot of major renovation to be done,
0:04:01 > 0:04:05'and I would recommend some new furniture!'
0:04:05 > 0:04:12# Excuse me, but I think you've got my chair... #
0:04:12 > 0:04:15'And through the back,
0:04:15 > 0:04:18'well, a new kitchen wouldn't go amiss either.'
0:04:18 > 0:04:21So, kitchen...or hovel?
0:04:21 > 0:04:24At the moment, it's more hovel, so what to do?
0:04:24 > 0:04:29This wall is to stay. Look at the size of this. It's just huge!
0:04:29 > 0:04:34You could bring this kitchen out but I reckon, push out to the back.
0:04:34 > 0:04:37With an extension, you'd add living space
0:04:37 > 0:04:41and you'd be able to see that garden.
0:04:41 > 0:04:43You've gone from hovel to homely.
0:04:46 > 0:04:50'Upstairs, a homely feel is needed in the three bedrooms,
0:04:50 > 0:04:55'but they are bright and big, with beautiful period features.
0:04:57 > 0:05:02'There's also a decent sized bathroom crying out for a makeover.
0:05:04 > 0:05:10'I can see so much potential as a rentable property or a terrific family house.
0:05:10 > 0:05:15'Downstairs, it looks like someone's already set up home.'
0:05:15 > 0:05:19# There's a moose loose aboot this hoose... #
0:05:19 > 0:05:23'There are no signs of life today, lucky for me.
0:05:23 > 0:05:28'Maybe they're camera shy, or out enjoying the huge garden,
0:05:28 > 0:05:32'which comes complete with another building!'
0:05:32 > 0:05:35At the back, it's property number two!
0:05:35 > 0:05:38Actually, it's just an outbuilding.
0:05:38 > 0:05:40I say "just", but look.
0:05:40 > 0:05:44It is huge! Perfect for a home office, a studio, a play room.
0:05:44 > 0:05:46It's a big bonus.
0:05:46 > 0:05:48But let's think.
0:05:48 > 0:05:54If there's space for this big building, is there space for another house?
0:05:54 > 0:05:58Unfortunately, it's never quite that simple.
0:05:58 > 0:06:01There may be room for another property,
0:06:01 > 0:06:05but I don't think that means you'd get planning permission.
0:06:05 > 0:06:08Mainly because of the lack of parking.
0:06:08 > 0:06:12The existing property doesn't have its own space.
0:06:12 > 0:06:17The only access would be down that path beside the house next door.
0:06:17 > 0:06:20With such limited access,
0:06:20 > 0:06:26I think the local council would not look favourably on major work here.
0:06:26 > 0:06:31Imagine the hassle involved trying to get materials in the site.
0:06:31 > 0:06:34With a guide price of £100,000,
0:06:34 > 0:06:38this spacious house with ample garden and outhouse
0:06:38 > 0:06:41could make a great project for a motivated buyer.
0:06:43 > 0:06:46What does a local property expert
0:06:46 > 0:06:50from the auction house who sold it make of it?
0:06:50 > 0:06:53The property is in need of total modernisation,
0:06:53 > 0:06:58but it retains many of the period features.
0:06:58 > 0:07:03So, sympathetically done, it would be a very pretty little house.
0:07:03 > 0:07:09'What work exactly could this place benefit from?'
0:07:09 > 0:07:13You do need to extend somehow. The kitchen doesn't really exist.
0:07:13 > 0:07:16It's really just like a little back corridor.
0:07:16 > 0:07:21You would have to bring it out, which could be done very easily.
0:07:21 > 0:07:28'That extension to the kitchen would certainly make the property more attractive to a buyer.
0:07:28 > 0:07:33'Once done, what could this place sell for?'
0:07:33 > 0:07:40I would think the property would be worth in the region of £185,000 to £190,000.
0:07:40 > 0:07:45'What if the buyer of this property decided to rent it out?'
0:07:45 > 0:07:48There is a strong rental market in the area.
0:07:48 > 0:07:57I would think a rental value of between 700 and 750 per calendar month would be for this property.
0:07:57 > 0:08:03This cottage deserves some love and looking after, and there's room for that important improvement.
0:08:03 > 0:08:11Whoever takes this on needs to remember that this road will limit potential, no matter what you do.
0:08:11 > 0:08:13Let's see who went for this at the auction.
0:08:13 > 0:08:16Someone like to put me straight in
0:08:16 > 0:08:18at 100,000?
0:08:18 > 0:08:2280 is it? 80,000. Thank you. 80,000. Looking for two.
0:08:22 > 0:08:26At £80,000. 85. 85.
0:08:26 > 0:08:2987. 90,000. 90,000.
0:08:29 > 0:08:3192.
0:08:31 > 0:08:3494. 94.
0:08:34 > 0:08:3696? 98.
0:08:36 > 0:08:3998. At 100,000.
0:08:39 > 0:08:41102? 102.
0:08:41 > 0:08:44104? 104.
0:08:44 > 0:08:46106.
0:08:46 > 0:08:50108. 110.
0:08:50 > 0:08:53112. 112. 112. 114.
0:08:53 > 0:08:57116. 116.
0:08:57 > 0:09:00118? 118.
0:09:00 > 0:09:02On the telephone. 120.
0:09:02 > 0:09:07120. Is that a bid, or are you gesturing? 121. 121.
0:09:07 > 0:09:12121. On the telephone, then, at 121,000.
0:09:12 > 0:09:15You're all out in the room.
0:09:15 > 0:09:19- £121,000 on the phone... - BANGS GAVEL
0:09:19 > 0:09:22Congratulations. 121,000. Thank you.
0:09:22 > 0:09:30'That successful bid of 121,000 was a phone bid from Sharon and her partner, Richard.
0:09:30 > 0:09:34'Sharon's a chef. Richard is an antiques dealer.
0:09:34 > 0:09:38'I met up with them at the house,
0:09:38 > 0:09:41'to find out their plans for this dusty old treasure.'
0:09:47 > 0:09:49Guys, congratulations.
0:09:49 > 0:09:53This is really good news. I'm glad you brought your friend.
0:09:53 > 0:09:57- Who's this?- This is Sam. - Hello, Sam. Congratulations.
0:09:57 > 0:10:01- You weren't at the auction, were you?- No.
0:10:01 > 0:10:07I was at work. Richard did the phone bid and bought the place without me seeing it!
0:10:07 > 0:10:13- What?! Did you know he was up to mischief?- I did. I did.
0:10:13 > 0:10:18And I trusted him. I saw it on the Saturday after we'd bought it.
0:10:18 > 0:10:25- You were happy for Richard to spend quite a lot of money on a property you'd not seen?- Not that happy! No.
0:10:25 > 0:10:29Richard, why did you want to bid for this property?
0:10:29 > 0:10:33We'd been looking for a while and nothing came up.
0:10:33 > 0:10:37So we looked around and we viewed it on Wednesday. Sharon was at work.
0:10:37 > 0:10:42- WE didn't view it. Richard did. - I viewed it.
0:10:42 > 0:10:47You get that feeling when you walked in, within 30 seconds.
0:10:47 > 0:10:51It was a nice place. And telling Sharon this was...
0:10:51 > 0:10:56She hadn't seen it but you could tell it was going to be good.
0:10:56 > 0:10:58And I'm confident.
0:10:58 > 0:11:00Potentially. Fingers crossed.
0:11:00 > 0:11:04# Come on and be my little good luck charm
0:11:04 > 0:11:07# Uh-huh-huh You sweet delight... #
0:11:07 > 0:11:11'Luckily for Richard, when Sharon saw the house
0:11:11 > 0:11:14'she fell for its charms, too.'
0:11:14 > 0:11:18# ..I want a good luck charm a-hanging on my arm
0:11:18 > 0:11:21# To have, to have To hold, to hold
0:11:21 > 0:11:24# Tonight. #
0:11:24 > 0:11:29Do you feel pleased that Richard went storming ahead and bought this?
0:11:29 > 0:11:32- Yes. I am.- Phew! - Pleased at the price.
0:11:32 > 0:11:36Because we spoke about the price and I said, "No more than 130."
0:11:36 > 0:11:40He told me that he was willing to go to 140.
0:11:40 > 0:11:43I think I would have strangled him then!
0:11:43 > 0:11:45'A lucky escape for Richard.
0:11:45 > 0:11:49'Thank goodness the price didn't shoot up.
0:11:49 > 0:11:53'They plan either to sell or rent the property -
0:11:53 > 0:11:56'once Sharon's approved Richard's plans!'
0:11:56 > 0:12:02- You have the vision for this property.- Sharon has as well. - Slightly different visions!
0:12:02 > 0:12:06- Sharon, what's your vision for this? - No, no!
0:12:06 > 0:12:10We've just... We've already got architect plans drawn up.
0:12:10 > 0:12:16I'm not happy with the plans drawn up between Richard and the architect.
0:12:16 > 0:12:20I'm coming up with different ideas. Things that don't need doing.
0:12:20 > 0:12:26Things that do need doing. It's quite good. We're mulling over it together.
0:12:26 > 0:12:30- Are you singing from the same hymn sheet?- Pretty much.- More or less.
0:12:30 > 0:12:34- That's a good start. - There's no major rows.
0:12:34 > 0:12:36- There's discussions!- That's healthy.
0:12:36 > 0:12:39# I don't care who's wrong or right
0:12:39 > 0:12:44# I don't really want to fight no more... #
0:12:44 > 0:12:50'Richard and Sharon will be hoping they can reach agreement on what to do
0:12:50 > 0:12:53'with all that space at the back.
0:12:53 > 0:13:00'The first step would be to apply to extend, but they're also hoping for permission to build a bungalow.
0:13:00 > 0:13:04'That could meet with opposition from the planners.
0:13:04 > 0:13:08'They're giving themselves only seven months to turn it around.
0:13:08 > 0:13:13'Luckily, they're no strangers to differences of opinions.'
0:13:13 > 0:13:17- Do you have any idea about budget? - Between £10,000 and £15,000.
0:13:17 > 0:13:21- I'm thinking more than that. - I'm on your side.
0:13:21 > 0:13:23I'm thinking 20 or 30. Yeah.
0:13:23 > 0:13:26- You two really are yin and yang! - We are!
0:13:26 > 0:13:31- But it works!- It does work.- I want to do it to a high spec and sell it.
0:13:31 > 0:13:33He wants to do that rent it.
0:13:33 > 0:13:40I don't want to do it to a high spec and rent it. They're issues we need to resolve.
0:13:40 > 0:13:44It's going to be exciting finding out what happens. I'm intrigued.
0:13:44 > 0:13:48Sam, I hope you put up with these two! Yes? Good.
0:13:48 > 0:13:51It's been lovely meeting you. Good luck.
0:13:51 > 0:13:53I think you might need it.
0:13:53 > 0:13:56- Yeah! - LAUGHTER
0:13:56 > 0:13:58Thank you.
0:13:58 > 0:14:00Yin and yang. Chalk and cheese.
0:14:00 > 0:14:04There are lots of ways to describe this couple.
0:14:04 > 0:14:07Richard's excited, but what about Sharon?
0:14:07 > 0:14:11She's closer to the mark on budget, but whose ideas will win the day?
0:14:11 > 0:14:16Has antique dealer Richard uncovered a gem or a real red herring?
0:14:16 > 0:14:19Find out later in the programme.
0:14:22 > 0:14:25'We now go back to a plot of land in Derby,
0:14:25 > 0:14:29'which I first visited in 2007.'
0:14:30 > 0:14:33I don't know about you,
0:14:33 > 0:14:38but when I think about plots of land I think about areas of countryside
0:14:38 > 0:14:42or large areas of land between existing buildings.
0:14:42 > 0:14:47Not necessarily a housing estate like this in Alveston outside Derby.
0:14:47 > 0:14:53However, a plot of land is for sale and it's got a guide price of 100,000 quid.
0:14:53 > 0:14:55And this is it.
0:14:55 > 0:15:00Not much to look at, but with development sites becoming rarer,
0:15:00 > 0:15:05especially in residential areas, it's always worth a look.
0:15:05 > 0:15:07This is quite interesting.
0:15:07 > 0:15:13A plot of land in an area like this would normally come from somebody selling a bit of their garden.
0:15:13 > 0:15:16In this case, judging by the fences,
0:15:16 > 0:15:21it looks to me like the neighbours have sold various bits of land
0:15:21 > 0:15:25to create what is not a bad size space.
0:15:25 > 0:15:27It's about 360 square metres.
0:15:27 > 0:15:30Level, which is good to see.
0:15:30 > 0:15:34Access onto the road, which is really important.
0:15:34 > 0:15:37The only issue is, it's a bit of a mess.
0:15:43 > 0:15:49'That mess isn't just an eye-sore, it can have a financial impact.
0:15:49 > 0:15:55'Dumping charges, removing waste and levelling to accommodate foundations can be expensive.'
0:15:58 > 0:16:05You're probably thinking, "Scrappy bit of land between houses in a bit of a mess."
0:16:05 > 0:16:09There's a key bit of information which I haven't told you
0:16:09 > 0:16:12which makes this plot of land very interesting.
0:16:12 > 0:16:16It's got planning permission for three terraced houses.
0:16:16 > 0:16:21So let's go through the numbers. The plot of land for £100,000.
0:16:21 > 0:16:25You build terraced houses, £40,000 to £50,000 each.
0:16:25 > 0:16:29How much are you into it for at that point? 100,000 plus 150.
0:16:29 > 0:16:31That's £250,000 you've spent.
0:16:31 > 0:16:37I reckon you could sell a terraced house here for 140, 150,000 quid.
0:16:37 > 0:16:41So, potentially, this plot of land, scrappy as it may be,
0:16:41 > 0:16:45could generate you a profit of... about 200,000 quid!
0:16:46 > 0:16:49Interested, all of a sudden?
0:16:49 > 0:16:54One thing for sure, I hope whoever buys this saves the bluebells.
0:16:56 > 0:16:59Looking at the plans for these three houses,
0:16:59 > 0:17:03they would be traditional with generous living spaces.
0:17:03 > 0:17:08There's little storage space - a common developer's strategy.
0:17:08 > 0:17:12Rooms look bigger when there aren't any cupboards.
0:17:12 > 0:17:18Things like this tree stump are going to take quite a lot of effort to get rid of.
0:17:18 > 0:17:21You've got to factor that into your costs.
0:17:21 > 0:17:25If somebody gets this for anything like the guide price,
0:17:25 > 0:17:30they could potentially make a pretty penny. Let's go to the auction.
0:17:32 > 0:17:37Lot number 11. An excellent little building site in Alveston.
0:17:37 > 0:17:42How much for this one? 100,000 is bid. Thank you.
0:17:42 > 0:17:46102. 104. 106.
0:17:46 > 0:17:48And eight. 110,000.
0:17:48 > 0:17:50112. 14.
0:17:50 > 0:17:52116. 116.
0:17:52 > 0:17:55118. 120.
0:17:55 > 0:17:5822. 124. 26.
0:17:58 > 0:18:0028. 130,000.
0:18:00 > 0:18:0432. 134. Try another?
0:18:04 > 0:18:06134,000.
0:18:06 > 0:18:08136. 138 is bid.
0:18:08 > 0:18:11140. 142.
0:18:11 > 0:18:13142. And a half?
0:18:13 > 0:18:16And a half. 143 is bid.
0:18:16 > 0:18:18And a half. 144.
0:18:18 > 0:18:22144. Five hundred? 45.
0:18:22 > 0:18:24145. And a half?
0:18:24 > 0:18:2746. 146.
0:18:27 > 0:18:29£146,000, then.
0:18:29 > 0:18:32Once, twice, third chance.
0:18:32 > 0:18:34BANGS GAVEL
0:18:34 > 0:18:38'And, just like that, the new owner is property developer Simon.
0:18:38 > 0:18:44'With over 30 years in the business, he saw the potential of the plans,
0:18:44 > 0:18:47'but it doesn't mean he's sticking to them.'
0:18:47 > 0:18:53I have a pattern of house, which is a three-bedroom detached house,
0:18:53 > 0:18:58with a half-integral garage, parking space next to it,
0:18:58 > 0:19:03slightly smaller floor area, not including the garage.
0:19:03 > 0:19:09Put the garage on, you've got somewhere to put your car, although most people use them for golf clubs,
0:19:09 > 0:19:12- prams, bicycles...- Yeah!
0:19:12 > 0:19:16I don't know anybody who uses their garage for a car!
0:19:16 > 0:19:20- Without a garage, we're suffering from lack of storage.- Right.
0:19:20 > 0:19:25'The addition of garages does solve that storage problem I mentioned.
0:19:25 > 0:19:28'Simon's taken the changes further.
0:19:28 > 0:19:34'He proposes three detached houses, which he thinks makes better financial sense.'
0:19:34 > 0:19:39I would hope that we'd be selling them for...150, 155,000.
0:19:39 > 0:19:43Each. We're going to build them for 50 to 60,000.
0:19:43 > 0:19:49- So, 320,000 and hopefully sell them for 450,000. - So a reasonable profit.- Yeah.
0:19:49 > 0:19:53'Although it's a risk, the decision lies with the planners.
0:19:53 > 0:20:00'Simon reckons he can make £20,000 more per house than the auctioneer's estimate.
0:20:00 > 0:20:05'But that's for terraced properties, not detached ones with parking.
0:20:05 > 0:20:09'Simon's been in the developing game for many years.
0:20:09 > 0:20:12'In that time, he's seen many changes.'
0:20:12 > 0:20:18You have highly qualified plumbers, with certificates at the end of the job.
0:20:18 > 0:20:23Highly qualified electricians, with certificates at the end of the job.
0:20:23 > 0:20:27There are rules and regulations, what you can and can't do.
0:20:27 > 0:20:34The building inspector will be looking for those. So it becomes... It's a lot more complicated.
0:20:34 > 0:20:40There are lots of bits and pieces - I could keep you here all day -
0:20:40 > 0:20:44which the ordinary person wouldn't know about, which is fine.
0:20:44 > 0:20:51Any advice you could give somebody thinking about buying land and building houses?
0:20:51 > 0:20:54Come and see me and sell it to me first!
0:21:00 > 0:21:03'But when we first returned, one year later,
0:21:03 > 0:21:09'it seemed that Simon's piece of land was still...a wasteland.'
0:21:09 > 0:21:15We had some small three-bed houses with garages half-built in.
0:21:15 > 0:21:21The planners said they wouldn't be happy because we've got gable ends built onto the road.
0:21:21 > 0:21:30They wanted the block of three which they had given permission for, so we said OK, we'll go with what's there.
0:21:30 > 0:21:34'So why is the plot still empty?'
0:21:34 > 0:21:38We were looking to move on site when we'd cleared other sites
0:21:38 > 0:21:44and build this out relatively quickly - six to eight months.
0:21:44 > 0:21:49Then the market changed so we are thinking, "Let's hesitate a bit."
0:21:49 > 0:21:54Frankly, we're still hesitating. We don't know what the market's doing.
0:21:54 > 0:21:57We shall be aiming for the first-time buyer
0:21:57 > 0:22:00and we think they're going to be hit hardest
0:22:00 > 0:22:06by the crisis in credit and the adjustment that the mortgage lenders
0:22:06 > 0:22:08are making to their requirements.
0:22:08 > 0:22:11'That was two and a half years ago.
0:22:11 > 0:22:17'Join us later in the show to find out if Simon finally managed to put his plan on the land.'
0:22:18 > 0:22:24'Coming up, I find this 1930s semi in Dartford, Kent, rather cramped.'
0:22:24 > 0:22:28Feels a bit narrow. It's just a bit petite.
0:22:28 > 0:22:34'In Derby, Simon reflects on the dilemma of where's best to invest.'
0:22:34 > 0:22:38There was a time when I was happy that my money was in land.
0:22:40 > 0:22:45'But first, how have Sharon and Richard got along working together?'
0:22:45 > 0:22:48Oh, it's been terrible. I could kill him!
0:22:51 > 0:22:57'Now, back to Dorset - Gillingham, to be precise.
0:22:57 > 0:23:01'This three-bedroom house was bought for 121,000.
0:23:01 > 0:23:07'There was a lot to be done inside, and plenty of potential out the back.
0:23:07 > 0:23:11'If only new owners Richard and Sharon could agree on the plans.'
0:23:11 > 0:23:13We've got architect plans.
0:23:13 > 0:23:20And I'm not happy with the plans that have been drawn up between Richard and the architects.
0:23:20 > 0:23:25- Are you singing from the same hymn sheet?- Pretty much.- More or less.
0:23:25 > 0:23:29- That's a good start!- There's no major rows. It's discussions.
0:23:29 > 0:23:33'Where have those discussions led them?
0:23:33 > 0:23:37'Eight months on, we've caught up with them.
0:23:37 > 0:23:42'Hopefully, the inside is as smart and appealing as the outside.
0:23:48 > 0:23:51'Each room has been lovingly restored
0:23:51 > 0:23:55'with replastering, rewiring and redecoration throughout.
0:23:55 > 0:23:58'The timber flooring is in keeping
0:23:58 > 0:24:01'with those period beams and exposed brickwork.'
0:24:01 > 0:24:04# As good as new, my love for you
0:24:04 > 0:24:08# And keeping it that way is my intention... #
0:24:08 > 0:24:13'They've squeezed a second toilet in on the ground floor, with a shower.
0:24:13 > 0:24:19'The old bathroom upstairs has been modernised, and looks terrific.
0:24:22 > 0:24:26'The bedrooms have been decorated in a similar style to downstairs,
0:24:26 > 0:24:30'with more exposed brickwork and warm flooring.
0:24:30 > 0:24:33'That just leaves the kitchen...
0:24:36 > 0:24:41'..which has been completely opened out in the extension.'
0:24:41 > 0:24:44Originally, I'm standing in the back door.
0:24:44 > 0:24:48What you're looking at was the old outbuilding.
0:24:48 > 0:24:52We've made the ceiling a lot higher.
0:24:52 > 0:24:56Old floorboards going out to the garden.
0:24:56 > 0:25:00I was trying to keep an old but contemporary look kitchen
0:25:00 > 0:25:06to transform the house, rather than a small cottage, into a family home.
0:25:08 > 0:25:13'They couldn't get planning permission for a second property.
0:25:13 > 0:25:17'Instead, they've reduced the size of the outhouse.'
0:25:17 > 0:25:20It was too close to the cottage.
0:25:20 > 0:25:24We had to take some of it down and create the kitchen-diner effect.
0:25:24 > 0:25:29We wanted to use it, but it was a single skin, had no foundations.
0:25:29 > 0:25:31A lot of it was subsiding.
0:25:31 > 0:25:35We didn't want to demolish it, so we saved what we can
0:25:35 > 0:25:38and used it to recycle what we can.
0:25:38 > 0:25:42Hopefully, the end result looks good.
0:25:42 > 0:25:46And kept it so that something can be done with it as an office
0:25:46 > 0:25:48or a play room.
0:25:48 > 0:25:52To get away from the kids or the kids to get away from the parents!
0:25:52 > 0:25:57'Richard did most of the renovation himself,
0:25:57 > 0:25:59'with help from family and friends.
0:25:59 > 0:26:06'As he's an antiques dealer, he wasn't about to throw any old bits of material away.'
0:26:06 > 0:26:11We had a reclamation yard in the back garden for four months!
0:26:11 > 0:26:15Richard, being an antique dealer, has to save EVERYTHING,
0:26:15 > 0:26:20every little bit of wood, he's pulling back off the fire.
0:26:20 > 0:26:22- Yeah, yeah.- Stones, brick.
0:26:22 > 0:26:25But it's helped us with the budget
0:26:25 > 0:26:28because most of those have been incorporated.
0:26:28 > 0:26:34The wall, that's all recycled stones and bricks from the outbuilding.
0:26:34 > 0:26:36And the flagstones on the patio.
0:26:36 > 0:26:40- So quite a lot has been recycled. - Saved.- Yeah.
0:26:42 > 0:26:46'With all that material being recycled,
0:26:46 > 0:26:52'it helped them keep within the budget of up to 30,000 - or did it?'
0:26:53 > 0:26:59Budget, I think we've probably spent about £65,000.
0:26:59 > 0:27:03So an awful lot more than either of us anticipated.
0:27:03 > 0:27:07- I wasn't very good at maths at school.- Neither was I!
0:27:08 > 0:27:11'Over double their original estimate!
0:27:11 > 0:27:15'Added to their purchase price of 121,000,
0:27:15 > 0:27:19'that makes a total outlay of 186,000.
0:27:19 > 0:27:23'Will all that work see them clear a decent profit?
0:27:24 > 0:27:28'We asked two local experts to tell us their thoughts.'
0:27:29 > 0:27:33I think the changes made are absolutely amazing.
0:27:33 > 0:27:39They've been done with a huge amount of love and feeling.
0:27:39 > 0:27:42It's been every attention to detail
0:27:42 > 0:27:46and I think it's a super, super job.
0:27:48 > 0:27:54Keeping features like the beams and fireplaces appeals to more people.
0:27:54 > 0:28:00There's not many character properties available at the moment.
0:28:00 > 0:28:04'They've clearly fallen for the charms of this property,
0:28:04 > 0:28:11'so what value will they put on it, first if it was to be rented out?'
0:28:11 > 0:28:16I would estimate between 675 and 700 per calendar month.
0:28:16 > 0:28:22The rental value for this property would probably be about £800 per calendar month.
0:28:22 > 0:28:27We are still wanting to sell, initially.
0:28:27 > 0:28:30But, yeah, it's a nice rental income
0:28:30 > 0:28:33if we decide to rent and we can't sell.
0:28:36 > 0:28:43'Sharon and Richard's plan is to sell, although if they have no luck, they may reconsider.
0:28:43 > 0:28:45'What sale price should they look to achieve?'
0:28:45 > 0:28:50I would value the property in the region of 170,000 to 180,000.
0:28:50 > 0:28:56I would put this property on the market at an asking price of £245,000.
0:28:56 > 0:28:59The second one, yes. First one, no.
0:28:59 > 0:29:01Absolutely not!
0:29:07 > 0:29:13'Richard and Sharon have done an amazing job, but how did they find working so closely together?'
0:29:13 > 0:29:17Oh, it's been terrible! I could kill him!
0:29:17 > 0:29:19- Um...- Yeah.
0:29:19 > 0:29:23There's been good days but there's been a few bad days.
0:29:25 > 0:29:29We are at each other's throats most the time anyway.
0:29:29 > 0:29:31- It's normal for us. - We get through it.
0:29:31 > 0:29:34We get the job done. It works.
0:29:34 > 0:29:38- Yeah.- All you have to do is work in separate parts of the house.
0:29:38 > 0:29:43- Then it sort of flows...- Yeah. LAUGHTER
0:29:45 > 0:29:49'This is Dartford, which is one of those in-between areas.
0:29:49 > 0:29:51'Is it Kent or is it London?
0:29:51 > 0:29:54'You could say it has the best of both worlds,
0:29:54 > 0:29:58'with access via the A2 to the capital, great train links
0:29:58 > 0:30:02'as well as edging nearer to that Kent countryside.
0:30:02 > 0:30:06'The property I'm here to see lies on a suburban street
0:30:06 > 0:30:11'and is a typical 1930s semi-detached - good and solid.'
0:30:11 > 0:30:16You couldn't get much nearer to the bus stop than this!
0:30:16 > 0:30:20Make up your mind if that is a pro or a con but the house is here.
0:30:20 > 0:30:26It's got three bedrooms and a guide price of 175,000 to 185,000.
0:30:26 > 0:30:30'There is space for off-road parking at the front -
0:30:30 > 0:30:38'that is if you need a car, when buses pull up right outside.'
0:30:38 > 0:30:43You can see from the outside, this house has got some character.
0:30:43 > 0:30:46I'm partial to a bit of stained glass!
0:30:46 > 0:30:50I do like the look of that, but it's quite small in here.
0:30:50 > 0:30:53It needs lots of work. Kitchen here.
0:30:53 > 0:30:57There's not enough room for a downstairs loo, which is a shame.
0:30:57 > 0:31:00This house just needs renovating.
0:31:00 > 0:31:05It's extremely dated, and the character stops right here!
0:31:05 > 0:31:07A funny old fireplace.
0:31:07 > 0:31:11The previous owners have chosen to open this wall up,
0:31:11 > 0:31:15knock this wall down, and not the kitchen wall.
0:31:15 > 0:31:20This would be the one I would take down to have a big kitchen-dining space.
0:31:20 > 0:31:24You could fit a large table and chairs here,
0:31:24 > 0:31:28but you'd have to keep going round into the kitchen and back.
0:31:28 > 0:31:33Not to my taste... But something that's not good is THAT!
0:31:33 > 0:31:35Look at the size of that crack!
0:31:35 > 0:31:38I would definitely get that looked at.
0:31:38 > 0:31:43Overall, this house, a bit on the small side. It feels a bit narrow.
0:31:43 > 0:31:45It's just a bit petite.
0:31:46 > 0:31:50'This place feels bigger on the outside than it does on the inside.'
0:31:50 > 0:31:52# Reet petite
0:31:52 > 0:31:56# The finest girl you ever wanna meet... #
0:31:56 > 0:32:04'You know the drill. Bring it up to date by lightening and brightening to give it that feeling of space.
0:32:04 > 0:32:08'There's bringing up to date to be done upstairs,
0:32:08 > 0:32:12'with a very old bathroom suite, dated built-in cupboards
0:32:12 > 0:32:17'and more of those worrying cracks in the front and back bedrooms.
0:32:17 > 0:32:21'But on a positive note, this semi has two very decent doubles
0:32:21 > 0:32:26'and the box room is big enough for a baby's room or a study.
0:32:26 > 0:32:30'To make this a proper family home, more space needs to be found.'
0:32:30 > 0:32:35A look on the council's website brings up a comprehensive document
0:32:35 > 0:32:42on alterations, additions and extensions, and it's good news for anybody interested in this house.
0:32:42 > 0:32:46The information states you can push out up to three metres at the back
0:32:46 > 0:32:49without applying for planning permission.
0:32:49 > 0:32:54Extend out here and increase your kitchen and living room. Great.
0:32:54 > 0:32:58However, I think that's selling this house a bit short.
0:32:58 > 0:33:04I reckon if you're going to go halfway, why not go the whole hog?
0:33:04 > 0:33:09Well, you can see the major work going on behind me.
0:33:09 > 0:33:16A quick walk down the road proves the opportunities for extending are greater than just a few metres.
0:33:16 > 0:33:20Half these houses have a double-storey side extension,
0:33:20 > 0:33:24which would add a bedroom and increase the living space.
0:33:24 > 0:33:28You would need planning permission but it would be hard to refuse,
0:33:28 > 0:33:33looking at the precedent set in this road.
0:33:33 > 0:33:36It could add 50k to the value of this house.
0:33:36 > 0:33:39All I can say is, "Go for it!"
0:33:39 > 0:33:45'It's amazing how properties have been extended, literally pushing up against each other.
0:33:45 > 0:33:49'It may not look attractive, but may mean that petite house
0:33:49 > 0:33:52'could be a thing of the past.
0:33:53 > 0:33:58'With a guide price of between 175,000 and 185,000,
0:33:58 > 0:34:03'it's time to find out from a local estate agent the pros and cons.'
0:34:03 > 0:34:08It's actually not in too bad a condition.
0:34:08 > 0:34:13Outside, it doesn't need much done. It just needs fixing up inside.
0:34:13 > 0:34:16This could be a really nice family property.
0:34:16 > 0:34:20New kitchen, new bathroom and complete redecoration.
0:34:20 > 0:34:24It would be a very popular house for anybody in the area.
0:34:24 > 0:34:28You could make this really nice for between 20,000 to 25,000.
0:34:28 > 0:34:33'Once renovated, how would the figures stack up for this property?'
0:34:33 > 0:34:37Doing it up to its maximum potential between 240,000 and 250,000.
0:34:37 > 0:34:41'What if it was made into a four or five-bed house?'
0:34:41 > 0:34:43If you put a large extension on,
0:34:43 > 0:34:47you could maximise a value in this road around about 300,000.
0:34:47 > 0:34:54This house needs more than tender loving care. It needs totally renovating and restoring.
0:34:54 > 0:34:59It also represents an opportunity to extend and make a decent home
0:34:59 > 0:35:02into a highly desirable place to live.
0:35:02 > 0:35:05Let's see who spotted this at auction.
0:35:09 > 0:35:13Start me at 170? 170. I'm on the way.
0:35:13 > 0:35:15170,000. Now 175?
0:35:15 > 0:35:18175 at the back I've got.
0:35:18 > 0:35:20177? 177. And 180.
0:35:20 > 0:35:24At the back if you like. 180 I've got.
0:35:24 > 0:35:29And two? It's against you. 182? 182 over on my right-hand side.
0:35:29 > 0:35:32185, if you like. And 188, now make it?
0:35:32 > 0:35:34188 with the cap. 190?
0:35:34 > 0:35:39190? Having a think about it. He says yes. And two?
0:35:39 > 0:35:4192. And five?
0:35:41 > 0:35:43195. Yes.
0:35:43 > 0:35:47And make it 200? Get there first. 200,000?
0:35:47 > 0:35:49198 he's saying. 198 I've got.
0:35:49 > 0:35:52Yours at 200 now, I think. He says yes.
0:35:52 > 0:35:58202 now? He's shaking his head. At £200,000 I'm bid for the first time. Anybody else can join in.
0:35:58 > 0:36:03It's in the room to sell for the first time. 200,000 for the second time.
0:36:03 > 0:36:06200 for the third and final time...
0:36:06 > 0:36:10Ooh, you ARE just in time.
0:36:10 > 0:36:14202. At 202 now, on the right-hand side by the door.
0:36:14 > 0:36:17204? 204, he says yes.
0:36:17 > 0:36:23206? That's another shake of the head. First time at £204,000.
0:36:23 > 0:36:27Second time at 204. Third and final time, we've been there before.
0:36:27 > 0:36:31- 204,000. It's yours, sir, for 204. - BANGS GAVEL
0:36:31 > 0:36:36'That successful bid of £204,000 was made by Mark.
0:36:37 > 0:36:41'He was an instrument engineer for a pharmaceutical company
0:36:41 > 0:36:48'but after renovating a couple of properties, he hopes to turn developing into a new career.
0:36:48 > 0:36:52'I met him at the house to hear about his plans.'
0:36:52 > 0:36:58- Mark, congratulations.- Thank you. - Why did you want to buy this house?
0:36:58 > 0:37:01Because of the area. I don't live far away.
0:37:01 > 0:37:05Don't have to travel to work and it's got potential.
0:37:05 > 0:37:10- Always helps when you know a road. - Yeah, I know the area.
0:37:10 > 0:37:16- So tell me about yourself. What have you been doing?- For 26 years, I've been an instrument engineer.
0:37:16 > 0:37:18For a pharmaceutical company.
0:37:18 > 0:37:24And also done some properties, going back ten years and five years.
0:37:24 > 0:37:28- You're now doing this full time? - Yeah, cos I've been made redundant.
0:37:30 > 0:37:34'Sadly, that's a familiar story nowadays.
0:37:34 > 0:37:38'A lifetime's dedication to a job over in a blink of an eye.
0:37:38 > 0:37:43'Luckily for Mark, he's enjoyed his two property projects and done well.
0:37:43 > 0:37:49'So this is an obvious step. Is it also obvious what needs to be done here?'
0:37:49 > 0:37:52Well, the one next door has been extended.
0:37:52 > 0:37:57And it would match up with next door so, basically, what they've done.
0:37:57 > 0:38:02- What about going out the back?- Yeah, just single storey at the back.
0:38:02 > 0:38:06Hopefully add space in the kitchen and dining area.
0:38:06 > 0:38:11- To the side, possibly add a bedroom. - Will it have that open-plan feel?
0:38:11 > 0:38:14- Definitely. Yeah. - What about upstairs?
0:38:14 > 0:38:17That's a bit trickier, that layout.
0:38:17 > 0:38:20You've got stairs in the way. I've done sketches.
0:38:20 > 0:38:24I've still not finalised it but, yeah, I want to extend,
0:38:24 > 0:38:29an en suite, another bedroom possibly, bigger master bedroom.
0:38:29 > 0:38:33- Another bathroom?- The bathroom will probably be bigger and an en suite.
0:38:33 > 0:38:39'Mark's aiming for a solid and sizeable four-bedroom family house.
0:38:39 > 0:38:43'He hopes to get it done in six months, which sounds reasonable.
0:38:43 > 0:38:50'He could see a substantial profit if he keeps his costs low, and that could be down to experience.'
0:38:50 > 0:38:55- So, hold on, Mark. Can you build? - Well, I have a builder friend.
0:38:55 > 0:38:59- And he'll help you! - No. I'm going to employ him.
0:38:59 > 0:39:03He's going to hopefully teach me as well, as we go.
0:39:03 > 0:39:08That's an incredible learning curve. Do you feel confident doing that?
0:39:08 > 0:39:10I've done courses already.
0:39:10 > 0:39:15I've done plastering, which was paid for by my company as retraining.
0:39:15 > 0:39:19So you feel knowledgeable and able to take on a project like this?
0:39:19 > 0:39:24It's going to be a learning curve with the building bit, but I'm quite happy.
0:39:24 > 0:39:28'There's a big difference between renovating and building.
0:39:28 > 0:39:32'Mark's also been on an electrician's course,
0:39:32 > 0:39:37'so hopefully he won't feel like a fish out of water.'
0:39:37 > 0:39:43# I'm working on a dream... #
0:39:43 > 0:39:50'Mark has had a survey and those cracks are historical movement, so that's good news.
0:39:50 > 0:39:54'Unfortunately, financing the purchase hasn't gone smoothly.
0:39:54 > 0:39:59'Mark had difficulty borrowing the money he needs from the bank.
0:39:59 > 0:40:03'That left him with a tight budget of £50,000 to do the renovation,
0:40:03 > 0:40:08'and that includes doing a big portion of the labour himself.'
0:40:08 > 0:40:13- I feel you'll do a really good job. - I'll give it me best shot.
0:40:13 > 0:40:16- I'm really excited to see how it turns out.- Good. Thanks.
0:40:16 > 0:40:22Mark has had a tough time, and financing this purchase has been a nightmare.
0:40:22 > 0:40:28This man needs some luck. I think it could be just the project he needs.
0:40:28 > 0:40:32You can find out how it all pans out later in the programme.
0:40:34 > 0:40:37Time has passed since we saw those properties.
0:40:37 > 0:40:40- Will they look as good as new? - Hope so.
0:40:40 > 0:40:47'Earlier in the programme, we went back in time, into 2007, when we first met Simon,
0:40:47 > 0:40:49'a property developer.
0:40:49 > 0:40:52'He had bought this plot of land in Alveston, Derby,
0:40:52 > 0:40:55'for 146,000.
0:40:55 > 0:40:59'It came with planning permission for three terraced houses.
0:40:59 > 0:41:05'Although Simon had wanted to implement his own design for three detached houses,
0:41:05 > 0:41:07'he went with the approved plans.
0:41:07 > 0:41:13'But when we first returned in 2008, there was still no development.'
0:41:13 > 0:41:19We were looking to move on site when we cleared other sites and build this out.
0:41:19 > 0:41:24Then the market changed so we are thinking, "Let's hesitate a bit."
0:41:24 > 0:41:29Frankly, we're still hesitating. We don't know what the market's doing.
0:41:29 > 0:41:34'Three years after our first visit, we've returned for a second time
0:41:34 > 0:41:38'to see whether Simon has finally got the plan on the land.
0:41:49 > 0:41:55'Outside and in, the development is still a work in progress.
0:41:55 > 0:42:00'For Simon, the conditions to go ahead were finally right.
0:42:00 > 0:42:02'He's followed the original plans
0:42:02 > 0:42:07'for developing a mini terrace of three three-bedroom houses.'
0:42:07 > 0:42:15We were watching the market. We thought it had bottomed out summer of last year.
0:42:15 > 0:42:18Which meant that in 2011, hopefully,
0:42:18 > 0:42:21it will start to slowly pick up.
0:42:21 > 0:42:23We are at the bottom end, on starter homes,
0:42:23 > 0:42:28which we think will be the piece that picks up first.
0:42:28 > 0:42:33We gave ourselves six to eight months and here we are towards finish stage.
0:42:33 > 0:42:38'The houses are all in various states of completion.
0:42:38 > 0:42:42'The right-hand house has just been plastered.
0:42:45 > 0:42:50'The middle house is mostly fitted, but waiting for painting.
0:42:50 > 0:42:53'The last one, on the left, is nearly 100% done,
0:42:53 > 0:42:57'just a few finishing touches needed.'
0:42:58 > 0:43:01The kitchen we put on the front of the house,
0:43:01 > 0:43:06so whoever's working in it gets a view of what's going on outside,
0:43:06 > 0:43:08people coming and going.
0:43:08 > 0:43:11We've made it pale to reflect light.
0:43:11 > 0:43:16It has soft-close doors and drawers, built-in cooker, hood and hob.
0:43:16 > 0:43:21We have a space for a washing machine and a dishwasher or fridge.
0:43:21 > 0:43:25And we left a space there for a fridge-freezer.
0:43:25 > 0:43:27Through into the living room.
0:43:27 > 0:43:33We've got a good selection of power points and TV, computer points.
0:43:33 > 0:43:39Back door there, out into a small garden, nice quiet space.
0:43:40 > 0:43:45'When it comes to space, you would think that the end houses had most.
0:43:45 > 0:43:48'Internally, it's a different story.
0:43:48 > 0:43:53'Because the upstairs bedroom of the middle house extends over a passage,
0:43:53 > 0:43:57'there's more floor space, which is an added bonus.'
0:43:57 > 0:43:59Because we have this extra space,
0:43:59 > 0:44:04we decided it would sell at the same price as the outside properties.
0:44:04 > 0:44:08Centre properties are usually a bit less, but we've kept them the same.
0:44:08 > 0:44:13'But something that didn't exist on the plans was a downstairs loo.
0:44:13 > 0:44:20'That is now necessary in new-builds to comply with building regulations on access for the disabled.
0:44:20 > 0:44:25'Simon's now happy that his proposed dwellings weren't given approval.'
0:44:25 > 0:44:30Going with the original plans was, without a doubt, the best thing.
0:44:30 > 0:44:37These will be not as expensive as detached houses and I think that's where we are with the market.
0:44:37 > 0:44:41'For everyone involved in the housing market,
0:44:41 > 0:44:46'the last four years have been tough, and Simon's no exception.'
0:44:46 > 0:44:52There was a time when I was happy that my money was in land and not in the banks.
0:44:52 > 0:44:56They looked as if they were all going to fall down.
0:44:56 > 0:45:01Then it gets a bit frustrating that you're having to sit about and wait.
0:45:01 > 0:45:06# So tired, tired of waiting
0:45:06 > 0:45:09# Tired of waiting for you... #
0:45:09 > 0:45:12'It may have been a long wait, but has it paid off?
0:45:12 > 0:45:19'Building the three terraced house development cost Simon between 140,000 and 150,000.
0:45:19 > 0:45:24'Add to that the 146,000 he paid for the land in 2007,
0:45:24 > 0:45:27'and his total outlay is up to about 296,000
0:45:27 > 0:45:30'plus office overheads and expenses.
0:45:30 > 0:45:33'Has it all been worth it?
0:45:36 > 0:45:39'We asked two local estate agents
0:45:39 > 0:45:43'what they thought of Simon's investment.'
0:45:46 > 0:45:52I think the houses that have been built are the right ones. He's made good use of space.
0:45:52 > 0:45:56They've got a reasonable frontage to them, decent plot.
0:45:56 > 0:45:58I think they're very nice.
0:46:00 > 0:46:04From the original plans, the final build and detail is very good.
0:46:04 > 0:46:08It will suit first-time buyers or young couples.
0:46:08 > 0:46:11The finish to the property is good.
0:46:11 > 0:46:13One or two touches need to be completed -
0:46:13 > 0:46:17floor coverings, tiling - then that will finish the picture.
0:46:17 > 0:46:21The particular thing I like on the specification,
0:46:21 > 0:46:25I do like the modern kitchens and bathrooms,
0:46:25 > 0:46:31particularly touches with the soft-close doors and integrated appliances. He's done very well.
0:46:31 > 0:46:36'That will be music to Simon's ears, but there's one small drawback.'
0:46:36 > 0:46:40The only thing that would put people off,
0:46:40 > 0:46:44particularly second-time buyers, might be the third bedroom.
0:46:44 > 0:46:46It is a bit on the small side.
0:46:46 > 0:46:51'How much could these houses sell for?'
0:46:51 > 0:46:58Given market conditions, I'd put these houses on the market between £105,000 and £110,000.
0:46:58 > 0:47:03Each one of these properties would do well to achieve above £110,000.
0:47:03 > 0:47:06I'd be interested to see where in this area
0:47:06 > 0:47:11there's a new three-bed property with a 10-year NHBC guarantee,
0:47:11 > 0:47:15parking space, central heating, all the lot, for 105,000.
0:47:15 > 0:47:19By the end of the year they'll be a lot more than that.
0:47:19 > 0:47:25'Simon clearly thinks the properties are worth more than this if sold.
0:47:25 > 0:47:31'Just in case he holds on to them, what rental income could he expect?'
0:47:31 > 0:47:37I'd be looking in the region of £450, £475 per calendar month.
0:47:37 > 0:47:43Looking at rental, each one is likely to realise about £495 a calendar month.
0:47:43 > 0:47:50'At those rental figures, Simon could get an annual yield of just under 6%.
0:47:54 > 0:47:59'Hopefully, he will get the return he believes the houses deserve.
0:47:59 > 0:48:03'With the project nearing completion, even after four years,
0:48:03 > 0:48:07'he's enjoyed the ups and downs of this development.'
0:48:07 > 0:48:13We've been blessed by good neighbours. It's a nice quiet area. There's been no aggravation.
0:48:13 > 0:48:18So, yes. It's what I do. It's what I enjoy doing, which is why I do it.
0:48:21 > 0:48:23'Earlier, we were in Dartford, in Kent,
0:48:23 > 0:48:31'where I met Mark, who bought this typical 1930s semi for £204,000.
0:48:31 > 0:48:36'He had renovated properties before but after being made redundant
0:48:36 > 0:48:42'he decided to take on a big project with the aim of adding an extension to the side and back.
0:48:42 > 0:48:45'Was his experience up to the task?'
0:48:45 > 0:48:49- Well, I have a builder friend. - And he'll help you!
0:48:49 > 0:48:55I'm going to employ him and he's going to hopefully teach me as well, as we go.
0:48:55 > 0:49:03- That's an incredible learning curve. - It's a learning curve with the building bit, but I'm happy.
0:49:03 > 0:49:06'Mark was certainly up for the challenge.
0:49:06 > 0:49:11'Ten months later, we went back to see if he'd reached the top of that learning curve.
0:49:14 > 0:49:18'From outside, it seems Mark did get his planning permission,
0:49:18 > 0:49:22'though the work is still on-going.
0:49:24 > 0:49:29'Round the back, Mark has also got his single-storey extension...
0:49:30 > 0:49:34'..which houses a brand-new open-plan kitchen!
0:49:41 > 0:49:44'The living room is a larger, more comfortable area,
0:49:44 > 0:49:47'so it really has been all change.'
0:49:49 > 0:49:53What I'm standing in now was the original kitchen.
0:49:53 > 0:49:56There was a door across the hallway.
0:49:56 > 0:50:00There was a window where this door is.
0:50:00 > 0:50:04There was a door onto the driveway, which is the new bathroom.
0:50:04 > 0:50:09Coming through here is the new extension with the kitchen.
0:50:09 > 0:50:13Dining area, and an extension back from the dining area,
0:50:13 > 0:50:17leading out through the French doors
0:50:17 > 0:50:20onto the new decking.
0:50:20 > 0:50:26'The side and rear extension has done an amazing job of opening up the ground floor.
0:50:26 > 0:50:32'But it does seem odd because, besides that bathroom in the middle,
0:50:32 > 0:50:35'there's also a shower room at the front.
0:50:35 > 0:50:39'Is there a third bathroom upstairs?'
0:50:39 > 0:50:45There was a bathroom here. A door here with a bathroom here.
0:50:45 > 0:50:47That's been changed to a toilet
0:50:47 > 0:50:51and extended to make the fourth bedroom.
0:50:51 > 0:50:57The small bedroom, which was quite small, has been extended as well, to open it out.
0:50:57 > 0:51:01These two bedrooms have stayed the same.
0:51:01 > 0:51:06'That side extension has made this a great family four-bedroom house.
0:51:06 > 0:51:13'But, and it's a big but, the lack of a bathroom up here is a major drawback.'
0:51:13 > 0:51:20The decision to put a bathroom downstairs was purely because it had to be ventilated.
0:51:20 > 0:51:24You cannot have an inhabited room ventilated. It has to have windows.
0:51:24 > 0:51:27The only one you can is a bathroom.
0:51:27 > 0:51:32It was decided that the bedrooms would go upstairs with a toilet.
0:51:32 > 0:51:36'Not being able to put a bedroom on the ground floor
0:51:36 > 0:51:40'affected Mark's plans, but he's gone ahead and, layout aside,
0:51:40 > 0:51:44'he's now got a good-looking property on his hands.
0:51:44 > 0:51:47'The garden was a struggle,
0:51:47 > 0:51:51'with Mark digging up the fish pond and removing 15 tonnes of concrete.
0:51:54 > 0:51:58'But the hard work wasn't just on the physical side.'
0:52:00 > 0:52:04It has been a bit stressful and a lot more work than I anticipated.
0:52:04 > 0:52:08I had done similar work, but not on this scale.
0:52:08 > 0:52:11The financial side's been pretty stressful.
0:52:11 > 0:52:18At the start, when I couldn't raise funds to do the extension, that was a big problem.
0:52:20 > 0:52:24'To raise the money, Mark had to take an unusual course of action.'
0:52:24 > 0:52:30To get the last part of the finance, I had to make the house let-able.
0:52:30 > 0:52:35I had to "tosh the house over" first before I could borrow the money.
0:52:35 > 0:52:39So I had to make it presentable and let-able.
0:52:39 > 0:52:43'Mark had to do a good renovation job to convince the money people
0:52:43 > 0:52:47'that he could rebuild and renovate all over again.'
0:52:47 > 0:52:52# Go back, Jack, and do it again... #
0:52:52 > 0:52:57'But having to go through that and trying to get planning permission
0:52:57 > 0:53:02'meant that Mark's original schedule of six months slipped to ten months,
0:53:02 > 0:53:06'with the actual rebuilding taking eight months of that.
0:53:06 > 0:53:10'As we know, in property development, time is money.'
0:53:10 > 0:53:14I said initially that I was thinking it would come in about 50,000.
0:53:14 > 0:53:19My actual budget started at about 60-something thousand.
0:53:19 > 0:53:26And I would say, now, it's probably up to about 70-something thousand, in the low 70s.
0:53:26 > 0:53:31'Add that to Mark's purchase price of 204,000
0:53:31 > 0:53:35'and that takes his total spend to at least 274,000.
0:53:35 > 0:53:37'The house looks good,
0:53:37 > 0:53:40'but I'm worried that the outlay and standard
0:53:40 > 0:53:45'is pushing up against the ceiling price for houses in this area.'
0:53:45 > 0:53:51For letting, it's probably too far. But for sale, it's probably OK.
0:53:51 > 0:53:53Because things have changed,
0:53:53 > 0:53:58I've now decided to let it so I can have a breathing space
0:53:58 > 0:54:05and have a look at the financial situation in this country, which is very big as to what I do next.
0:54:08 > 0:54:11'Hopefully, Mark will make the right decision.
0:54:11 > 0:54:13'We asked two local estate agents
0:54:13 > 0:54:18'what they thought of his £274,000 investment.'
0:54:22 > 0:54:27It is finished off to a nice standard. It's on its way.
0:54:27 > 0:54:33I'm sure when he finishes it's going to be a great family home.
0:54:33 > 0:54:38First impressions is specification is good. The kitchen works well.
0:54:38 > 0:54:44The units and sanitary ware in the bathroom is all good quality.
0:54:44 > 0:54:45That's a plus.
0:54:45 > 0:54:51'There's no doubting the standard of finish but is the layout a problem?'
0:54:51 > 0:54:57The fourth bedroom adds value. You're likely to achieve a better price.
0:54:57 > 0:55:02It's just the layout, how it's been extended,
0:55:02 > 0:55:04isn't as ideal as it could be.
0:55:04 > 0:55:10Most families would want a first-floor bathroom.
0:55:10 > 0:55:12'Will that affect the value?
0:55:12 > 0:55:19'Mark has spent a good £274,000, so what could a resale achieve?'
0:55:19 > 0:55:28Under the current climate, we would suggest a marketing price in the region of £270,000 to £285,000.
0:55:28 > 0:55:36I would put it on the open market between £270,000 to £290,000.
0:55:36 > 0:55:42Yeah, I've seen houses go for more in this road, in the past.
0:55:42 > 0:55:45But I'm not selling anyway, so...!
0:55:45 > 0:55:50'Both estate agents thought that with the lettings market buoyant,
0:55:50 > 0:55:54'Mark was making the right decision to rent, so what could he achieve?'
0:55:54 > 0:55:59If the property was to come to the market today, we would suggest
0:55:59 > 0:56:04a rental price in the region of £1,300 to £1,400 per calendar month.
0:56:04 > 0:56:13I would value the property to put on the market between £1,300 and £1,400 per calendar month.
0:56:13 > 0:56:17That's in the middle of the ranges that I've been given already.
0:56:17 > 0:56:19That's about right. Yeah.
0:56:19 > 0:56:23'If Mark got that upper £1,400 rental income,
0:56:23 > 0:56:26'he could earn a yield of just over 6%,
0:56:26 > 0:56:31'which might make the lack of clear sale profit easier to bear.
0:56:31 > 0:56:36'Although the path wasn't smooth, Mark's positive about the experience.'
0:56:36 > 0:56:39I've definitely learned a lot.
0:56:39 > 0:56:44I've enjoyed a hell of a lot of it, and glad to see the back of it!
0:56:44 > 0:56:46So all of them, yeah.
0:56:48 > 0:56:52We'll be back with more properties to whet your appetite.
0:56:52 > 0:56:59- We hope we've given you an insight into the auction world on Homes Under The Hammer. Goodbye.- Goodbye.
0:57:16 > 0:57:19Subtitles by Red Bee Media Ltd
0:57:19 > 0:57:22E-mail subtitling@bbc.co.uk