0:00:02 > 0:00:05We're always being told to save for the future.
0:00:05 > 0:00:11These days, people are searching for ways to supplement or replace their pensions.
0:00:11 > 0:00:13Property is an attractive option.
0:00:13 > 0:00:17That's why so many people buy their homes under the hammer.
0:00:42 > 0:00:48If, like us, you hope property is a safe investment, you must choose wisely.
0:00:48 > 0:00:52That means doing your research to search for the bargains.
0:00:52 > 0:00:56- What did our buyers on today's show find?- Let's take a look.
0:00:57 > 0:01:02'In Cornwall, this old cottage has some unexpected accommodation.'
0:01:04 > 0:01:07Curiouser and curiouser.
0:01:07 > 0:01:11'This London house can't conceal its troubled past.'
0:01:11 > 0:01:17You can see the extent of the damp, mould and condensation.
0:01:17 > 0:01:23'In Derby, this one-bed flat might suit a buyer with a big appetite.'
0:01:23 > 0:01:28Perfect if you're serving roasted elephant! Absolutely massive.
0:01:28 > 0:01:32'All these properties went to auction.
0:01:32 > 0:01:37'We find out who bought them and what they paid when they went under the hammer.'
0:01:40 > 0:01:44'I'm in a village called Pool, near Redruth in Cornwall.
0:01:44 > 0:01:47'Copper and tin mines made the area rich.
0:01:47 > 0:01:53'The South Crofty Mine was in operation for 400 years,
0:01:53 > 0:01:56'but closed in just 1998.
0:01:56 > 0:02:00'Controversy has raged about what to do with the site.
0:02:00 > 0:02:05'Since exploratory drilling found traces of gold there's excitement
0:02:05 > 0:02:09'that maybe the area is about to strike it rich again.
0:02:09 > 0:02:13'Will I strike gold with this auction lot?'
0:02:13 > 0:02:17The property is on the main road in and out of town.
0:02:17 > 0:02:20As you can see, very busy and noisy.
0:02:20 > 0:02:26The slightly good news is that the property is set back from the road, although not that far.
0:02:26 > 0:02:28Looks a bit of a state from outside.
0:02:28 > 0:02:35End terrace, two bedrooms, guide price of 50,000 to 70,000 quid.
0:02:35 > 0:02:37Wish me luck.
0:02:40 > 0:02:43'The property has a certain character appeal,
0:02:43 > 0:02:47'but the rendering and the state of the windows concern me.
0:02:47 > 0:02:52'Inside may have a little more character than is really desirable.'
0:02:52 > 0:02:54Intriguing. Right.
0:02:54 > 0:02:58Little corridor there, then through this...
0:02:58 > 0:03:00extra door, stairs to the bedrooms.
0:03:00 > 0:03:04I'm already feeling very claustrophobic.
0:03:04 > 0:03:07This is a very old cottage, about 1700.
0:03:07 > 0:03:12Typical of this area. Look at the thickness of those walls!
0:03:12 > 0:03:16The bad news is that's probably not damp proofed.
0:03:16 > 0:03:18This is your living room area.
0:03:18 > 0:03:22Love this! That's actually going to...
0:03:22 > 0:03:25That's going to another socket.
0:03:25 > 0:03:28Not sure that quite meets current regulations.
0:03:28 > 0:03:31- LAUGHING:- No!
0:03:31 > 0:03:35But anyway, through to the kitchen. Mm-hm.
0:03:35 > 0:03:38Tiny, tiny, tiny, tiny.
0:03:40 > 0:03:45You'd have to be very small to live here without banging your head.
0:03:45 > 0:03:48I'm not getting a good feel about this place.
0:03:48 > 0:03:51Very dry?
0:03:51 > 0:03:53- LAUGHS - Yes. I'll tell you what.
0:03:53 > 0:03:57Judging by the smell and that damp on the walls,
0:03:57 > 0:03:59I beg to differ.
0:03:59 > 0:04:02'And what a lethal combination!
0:04:02 > 0:04:06'Sopping wet walls and dodgy electrics.'
0:04:06 > 0:04:09# She's electric... #
0:04:09 > 0:04:13'I reckon this property has had a stormy past.
0:04:13 > 0:04:16'It still looks very unsettled.
0:04:16 > 0:04:19'The yard doesn't get any better.
0:04:19 > 0:04:23'It's full of sheds, and an outside loo.
0:04:23 > 0:04:27'It looks like the washing machine used to live here.
0:04:27 > 0:04:29'On the left-hand side,
0:04:29 > 0:04:33'there's a second reception room in a similar state.
0:04:33 > 0:04:37'Maybe you can move the kitchen into the first reception room
0:04:37 > 0:04:40'and create a utility room in the kitchen.
0:04:40 > 0:04:44'And it's all getting very weird in the hallway.'
0:04:46 > 0:04:48Curiouser and curiouser.
0:04:48 > 0:04:52At the end of the entrance hall is this cupboard.
0:04:52 > 0:04:54Nothing too unusual,
0:04:54 > 0:04:59until I tell you the ceiling is the next-door neighbour's property.
0:04:59 > 0:05:02It's a "flying freehold" over your house.
0:05:02 > 0:05:07Not too much of a problem, unless they have a party up there.
0:05:07 > 0:05:13It IS a problem because mortgage companies don't like flying freeholds.
0:05:13 > 0:05:17In this case, not a problem. Don't think it's mortgageable anyway!
0:05:17 > 0:05:22'So, along with the flying freehold and other structural issues,
0:05:22 > 0:05:29'I reckon it's nigh-on impossible to get a mortgage on this, with a guide price of 50 to 70 grand.
0:05:29 > 0:05:31'What joys await upstairs?'
0:05:31 > 0:05:35Up this cute little staircase... Mind me head.
0:05:35 > 0:05:38..to two bedrooms.
0:05:38 > 0:05:42Surprisingly, they're not too bad, in terms of size.
0:05:42 > 0:05:46But the doors to them - how cute is that?
0:05:46 > 0:05:49That's possibly a bit more serious.
0:05:49 > 0:05:52Nasty cracking going on in this end wall.
0:05:52 > 0:05:55That's probably just the plaster.
0:05:55 > 0:05:59Take that off and see what the brickwork underneath is like.
0:05:59 > 0:06:01Not a bad sized room.
0:06:01 > 0:06:05Built-in cupboard, which is nice to have.
0:06:05 > 0:06:10The one thing I haven't found yet... is the bathroom and loo.
0:06:10 > 0:06:14It isn't downstairs. It isn't upstairs. There isn't one.
0:06:14 > 0:06:17That's not good, is it?
0:06:17 > 0:06:23'If you need to spend a penny, that requires a trip to the outside loo.
0:06:23 > 0:06:26'Never ideal on a winter's night.'
0:06:26 > 0:06:28# But, baby, it's cold outside... #
0:06:28 > 0:06:31'As well as this inconvenience,
0:06:31 > 0:06:34'the bedrooms appear to have damp issues
0:06:34 > 0:06:37'and are a cause for concern.
0:06:37 > 0:06:42'I asked a local estate agent to give us his view
0:06:42 > 0:06:46'on what it would take to bring it up to scratch.'
0:06:47 > 0:06:51My first impressions of the property,
0:06:51 > 0:06:56needs a lot of money spending on it, there's damp issues throughout.
0:06:56 > 0:07:02Two options for the bathroom. You have a kitchen in an outbuilding.
0:07:02 > 0:07:06Bring that inside, creating the bathroom there,
0:07:06 > 0:07:10or between the two bedrooms, above the stairwell.
0:07:10 > 0:07:12'Once the house has been sorted out,
0:07:12 > 0:07:18'could it appeal to the local market for people looking to rent?'
0:07:18 > 0:07:23There's certainly a good rental potential for this property,
0:07:23 > 0:07:26with the college within a stone's throw.
0:07:26 > 0:07:30A monthly income, you'd be looking in the region of £550.
0:07:30 > 0:07:32'So, renting's an option.
0:07:32 > 0:07:38'What could the sale value be, once the house is refurbished?'
0:07:38 > 0:07:43I would look to market this property in the region of £120,000.
0:07:43 > 0:07:47Wow! Well, this is a project and a half, for sure.
0:07:47 > 0:07:54Not only is a major refurbishment required, but you're also creating whole new rooms
0:07:54 > 0:07:58before you can drag this place into the 21st century.
0:07:58 > 0:08:03Who fancied taking it on? Let's find out when it went to auction.
0:08:05 > 0:08:07So it's the end of terrace.
0:08:07 > 0:08:10Two bedrooms upstairs.
0:08:10 > 0:08:14A kind of kitcheny thing on the back and quite a good sized yard.
0:08:14 > 0:08:17Not going to start less than 50.
0:08:17 > 0:08:2150, thank you. 50 I've got. At 50. At 50. Two.
0:08:21 > 0:08:2654. At 54. At 54. At 54,000, then.
0:08:28 > 0:08:3156 to your right. You saw it. 56.
0:08:31 > 0:08:35At 56. Gentleman on the wing, there. At 56. At 56.
0:08:35 > 0:08:39At 56. At 56 once...
0:08:39 > 0:08:41I'll take seven if it helps.
0:08:41 > 0:08:46At the moment, gentleman on the wing's got it. At 56 on my left.
0:08:46 > 0:08:50First time. And the second time. You are going to miss this cottage.
0:08:50 > 0:08:54At 56, sure and done. Congratulations, sir.
0:08:54 > 0:08:58'That successful bid of 56,000 was made by Gordon,
0:08:58 > 0:09:03'who was at the auction with his partner, Valerie.
0:09:03 > 0:09:06'He lives 18 miles from Redruth.
0:09:06 > 0:09:12'He's always been interested in property developing and has renovated his own house.
0:09:12 > 0:09:18'He used to be a milkman but, after hip problems, was forced to retire
0:09:18 > 0:09:20'and decided to focus on property developing.
0:09:21 > 0:09:28'He has six that he rents out. I met him and Valerie at his latest purchase.'
0:09:28 > 0:09:32- Gordon, Valerie, lovely to meet you. - Pleasure to meet you.
0:09:32 > 0:09:37- Tell me why you've bought it. Is it somewhere to live?- No.
0:09:37 > 0:09:39- It's an investment.- Really.
0:09:39 > 0:09:44Valerie, she's not too keen, but she follows me.
0:09:44 > 0:09:51- Right.- She'll pitch in her ideas but I think, sometimes, she wishes I'd go and sit down.
0:09:51 > 0:09:54You have got other properties.
0:09:54 > 0:09:58He likes to have an old place, do it up and make it look nice.
0:09:58 > 0:10:02- How many times have you done this kind of thing?- Well, I've...
0:10:02 > 0:10:05- Six. - I've got six buy-to-let properties.
0:10:05 > 0:10:10Some of them have needed a lot and some haven't needed so much.
0:10:10 > 0:10:15Sometimes, I say, "Let's get one you haven't got to do anything to.
0:10:15 > 0:10:19"Just a lick of paint." You can get them. That doesn't satisfy him.
0:10:19 > 0:10:24He likes ones that you've got to pull this down, look in there.
0:10:24 > 0:10:27It's very satisfying to me. This was a chance.
0:10:27 > 0:10:31- I didn't come inside before I bought it.- You didn't come inside?
0:10:31 > 0:10:37You're going to say, "You're mad!" But I didn't. I ran out of days.
0:10:37 > 0:10:43The day of the auction, 20 minutes before he should be there, he walked up the alley.
0:10:43 > 0:10:46I looked at the roof. It's sound.
0:10:46 > 0:10:51'The roof does look sound, but it's probably the only thing that is.
0:10:51 > 0:10:56'Buying a property without seeing it is never a sensible idea.
0:10:56 > 0:11:00'Some do get away with it but, judging by the state of this,
0:11:00 > 0:11:04'Gordon has taken on a challenge, to say the least.
0:11:04 > 0:11:06'It hasn't even got a bathroom.'
0:11:09 > 0:11:12Tell me exactly what you're going to do.
0:11:12 > 0:11:17Well, we intend to put a shower room with a wash basin and toilet
0:11:17 > 0:11:20that can be accessed from both bedrooms.
0:11:20 > 0:11:24- Have a Jack and Jill bathroom. - Over there somewhere.
0:11:24 > 0:11:28There'll be a lock inside each door just across here, if we can work it.
0:11:31 > 0:11:37'A Jack and Jill bathroom doesn't mean you have to go up a hill to get a pail of water!
0:11:37 > 0:11:40'It's a bathroom with two doors,
0:11:40 > 0:11:44'accessed from both bedrooms, when space is limited.
0:11:48 > 0:11:51'What about downstairs?
0:11:51 > 0:11:56'Well, the living room has damp, and dodgy wiring.
0:11:56 > 0:12:01'There's that strange cupboard plus a room that looks onto the road.
0:12:01 > 0:12:03'What are Gordon's ideas?'
0:12:06 > 0:12:10As you come in, we're planning to take the partition down and make that a lounge.
0:12:10 > 0:12:13- Great.- Which will open that up.
0:12:13 > 0:12:17This cupboard, we're planning to make the door higher
0:12:17 > 0:12:23so that can be a walk-in cupboard for boots and vacuum cleaner.
0:12:23 > 0:12:27We're planning to have a lounge-diner under here
0:12:27 > 0:12:28with a utility at the back.
0:12:28 > 0:12:33A new outside toilet, so there is a toilet on the ground floor.
0:12:33 > 0:12:36Take away at least one of the sheds
0:12:36 > 0:12:41and make that into a nice sitting-out area.
0:12:41 > 0:12:46- How much are you going to spend? - We reckon 30,000, 35,000.
0:12:46 > 0:12:52- It's a lot of money. - With that, we ought to be able to make it a good property.
0:12:52 > 0:12:57- What's your involvement, Valerie? - Making the tea and coffee, I expect.
0:12:57 > 0:13:01- Good luck, and we look forward to seeing how you get on.- Thank you.
0:13:01 > 0:13:04- Thank you.- Thank you.
0:13:04 > 0:13:06# ..Leave the door on the latch I'll be
0:13:06 > 0:13:10# Back before the milkman I expect... #
0:13:10 > 0:13:15'My goodness! Gordon and Valerie have taken on a heck of a project
0:13:15 > 0:13:20'and hope to get it all done in around 12 weeks.
0:13:20 > 0:13:25'They have sensibly set a decent budget of £35,000.
0:13:25 > 0:13:27'But who knows what may surface?'
0:13:27 > 0:13:32Just as well that Gordon likes a challenge. He's got one here.
0:13:32 > 0:13:35He does have some really good ideas
0:13:35 > 0:13:40and as long as Valerie can keep him in check when it comes to the budget
0:13:40 > 0:13:44there could be money to be made, but not without a fight.
0:13:44 > 0:13:47Find out how they get on later in the show.
0:13:51 > 0:13:53'I'm in East Finchley, London,
0:13:53 > 0:13:57'home to one of the most expensive roads in Britain.'
0:13:57 > 0:14:01# Money, money, money Must be funny... #
0:14:01 > 0:14:06'Recently, a property on The Bishop's Avenue sold for £50 million.
0:14:06 > 0:14:09'No wonder it's known as billionaire's row.
0:14:09 > 0:14:13'Not as grand, and a couple of streets away from that opulence,
0:14:13 > 0:14:17'I've come to see a semi that went to auction.'
0:14:17 > 0:14:22The auction catalogue tells me the property is in Highgate! Wrong!
0:14:22 > 0:14:24The property is in East Finchley.
0:14:24 > 0:14:32Taking Bishop's Avenue out of the equation, properties are 15% to 20% cheaper compared to Highgate.
0:14:32 > 0:14:38This is why I stress the importance of visiting a property before going to auction.
0:14:38 > 0:14:40Buying blind is never OK,
0:14:40 > 0:14:45and you cannot always trust the information in the catalogue.
0:14:45 > 0:14:48So always go and see it yourself.
0:14:48 > 0:14:53So this is the property on this very noisy busy A road.
0:14:53 > 0:14:59But it is a semi-detached house, it's got three bedrooms and the guide price - £390,000!
0:14:59 > 0:15:03'That may be an awful lot of money to live next to an A road,
0:15:03 > 0:15:07'but this is the A1, meaning that although it's noisy,
0:15:07 > 0:15:10'it's a very well connected address.'
0:15:14 > 0:15:20Stinky...and damp are the words that spring to mind when you walk in.
0:15:20 > 0:15:24You can really smell the damp and you can see it everywhere.
0:15:24 > 0:15:28There's lumps of black splurged all over the ceiling.
0:15:28 > 0:15:34I know, from this catalogue, there has been a lot of water damage.
0:15:34 > 0:15:38This house is in need of some serious repair.
0:15:38 > 0:15:43We've got decaying floorboards and if you look closely on this,
0:15:43 > 0:15:48you can see the extent of the damp and the mould and the condensation
0:15:48 > 0:15:51that is everywhere over these walls.
0:15:51 > 0:15:54Right. Onwards.
0:15:54 > 0:15:56Ooh. And upwards!
0:15:56 > 0:16:00Water damage aside, let's take a look at what we've got.
0:16:00 > 0:16:05This would be the sitting room. Quite a nice '50s fireplace.
0:16:05 > 0:16:08Somebody's installed central heating.
0:16:08 > 0:16:11You've got secondary glazing,
0:16:11 > 0:16:16which you really need to keep that noisy road at bay.
0:16:16 > 0:16:20You've got storage, plenty to the front and the back.
0:16:20 > 0:16:27But I have to say, I'm still not massively excited about this place.
0:16:27 > 0:16:30# What do I gotta do to make you love me?
0:16:33 > 0:16:37# What do I gotta do to make you care...? #
0:16:37 > 0:16:41'Oh, dear. This house is in a pretty sorry state.
0:16:41 > 0:16:46'There are two old-fashioned scullery rooms,
0:16:46 > 0:16:51'and the second reception room looks like a sofa graveyard.'
0:16:51 > 0:16:55# ..It's sad, so sad So sad
0:16:55 > 0:17:01# It's a sad, sad situation And it's getting more and more... #
0:17:01 > 0:17:05'Upstairs, things are a little better.
0:17:05 > 0:17:08'Three good size bedrooms with lovely period features.
0:17:08 > 0:17:15'The secondary double glazing continues, giving some relief from that busy road.'
0:17:15 > 0:17:20When buying for investment purposes, always carry out thorough research.
0:17:20 > 0:17:24This will help you decide whether you want to sell on or rent out.
0:17:24 > 0:17:28Talking with local agents, I found out
0:17:28 > 0:17:32that adding an extra bedroom will broaden your sales market
0:17:32 > 0:17:37and increase its value by as much as £150,000 - loads of money!
0:17:37 > 0:17:42However, if you wanted to rent this out leaving it as a three-bed,
0:17:42 > 0:17:48it would be more advantageous because renters are less keen on four-bed houses.
0:17:48 > 0:17:53Research really is key to making any project a success.
0:17:56 > 0:17:59'It's a common mistake that investors make.
0:17:59 > 0:18:05'Always keep your end market in mind, from the moment you view a property.
0:18:05 > 0:18:09'Let's head to the back garden, to get a better idea of options.'
0:18:09 > 0:18:15When looking around a property, you know my mantra - can you add value?
0:18:15 > 0:18:19I found a way here, creating off-street parking.
0:18:19 > 0:18:23It is a must, and there's plenty of room to add a garage.
0:18:23 > 0:18:27Secure off-street parking will nearly always add value.
0:18:27 > 0:18:31It makes a property easier to market and, as it stands,
0:18:31 > 0:18:35the nearest place to park is a mile away - no good!
0:18:35 > 0:18:42'With this amount of space, there's no excuse for not having off-street parking.
0:18:42 > 0:18:45'It could take negotiation with the council,
0:18:45 > 0:18:49'but that would transform the appeal of the property instantly.'
0:18:50 > 0:18:52Ha! That garden is huge!
0:18:52 > 0:18:56120-foot, to be exact.
0:18:56 > 0:19:02It backs onto Highgate golf course so it's tranquil and beautiful.
0:19:02 > 0:19:06Parking opportunities? Yes, that would be nice.
0:19:06 > 0:19:10But I am seeing something that's much more interesting.
0:19:10 > 0:19:12A potential building plot.
0:19:14 > 0:19:18'There's road access to the garden, which makes it viable.
0:19:18 > 0:19:20'With developments in the area
0:19:20 > 0:19:23'planning permission shouldn't be difficult,
0:19:23 > 0:19:28'and that could turn this garden into a gold mine.
0:19:30 > 0:19:36'Maybe this place has more going for it than I initially thought.
0:19:39 > 0:19:42'Let's hear from a local estate agent.'
0:19:42 > 0:19:45Being on a main road will put some people off.
0:19:45 > 0:19:50Not everyone. Someone with a budget that wants to live in the area.
0:19:50 > 0:19:54I think we'd sell this no problem at all.
0:19:54 > 0:19:58'Bearing in mind the guide price of 390,000,
0:19:58 > 0:20:03'how much could this be worth once renovated?'
0:20:05 > 0:20:07If we just developed this as it is,
0:20:07 > 0:20:11we'd sell this on in the region of £600,000.
0:20:11 > 0:20:14'What about its value on the rental market?'
0:20:14 > 0:20:21If we were to rent this out as a three-bed, we'd achieve £1,500 per calendar month.
0:20:21 > 0:20:23'That's not all, by any means.
0:20:23 > 0:20:29'With a garden and plenty of scope to extend or split the property up,
0:20:29 > 0:20:31'the sky really could be the limit.'
0:20:32 > 0:20:36I think this is an exciting one to go for.
0:20:36 > 0:20:39Let's see who went for it at the auction.
0:20:40 > 0:20:44Three-bed semi. Back garden overlooks Highgate golf course.
0:20:44 > 0:20:50I haven't played there. Any members, please give us an invite.
0:20:50 > 0:20:54- Over to you... - 350!- 350 on my left.
0:20:54 > 0:20:57355. 360, sir?
0:20:57 > 0:21:00365? 370?
0:21:00 > 0:21:03375? 380?
0:21:03 > 0:21:05385?
0:21:05 > 0:21:07390?
0:21:07 > 0:21:11395? With you. 400?
0:21:11 > 0:21:14- 405, sir?- 401.- 401.
0:21:14 > 0:21:17402? 403?
0:21:17 > 0:21:19404? 405?
0:21:19 > 0:21:22406? 407? 408?
0:21:23 > 0:21:26409? Have a think. 408 with you.
0:21:26 > 0:21:29409, new spot. 410?
0:21:29 > 0:21:31415? 420?
0:21:31 > 0:21:34425? 430?
0:21:34 > 0:21:36431? 432?
0:21:36 > 0:21:39433? 434?
0:21:40 > 0:21:42434?
0:21:42 > 0:21:44435? 436?
0:21:44 > 0:21:48437? 438?
0:21:48 > 0:21:50439?
0:21:50 > 0:21:53440. He's back in. 441?
0:21:53 > 0:21:55442? 443?
0:21:55 > 0:21:58444? 445?
0:21:58 > 0:22:00446?
0:22:00 > 0:22:02446 anywhere?
0:22:02 > 0:22:04446. 447?
0:22:04 > 0:22:06448?
0:22:06 > 0:22:08449?
0:22:08 > 0:22:10450? 451?
0:22:11 > 0:22:13452?
0:22:13 > 0:22:15453?
0:22:15 > 0:22:17454? 455?
0:22:17 > 0:22:19455?
0:22:19 > 0:22:23If not, 454 first time. Second time. Third...
0:22:23 > 0:22:26455. 456, sir?
0:22:26 > 0:22:31455, with you first time. Second time.
0:22:32 > 0:22:35Sold, 455.
0:22:35 > 0:22:37'After an epic bidding battle,
0:22:37 > 0:22:42'property developers Mohammed and Aniz stayed the course
0:22:42 > 0:22:44'and bought the home for 455,000.
0:22:44 > 0:22:50'I met up with them at their first joint venture to hear about their plans.'
0:22:50 > 0:22:55Congratulations, guys. This is brilliant news.
0:22:55 > 0:22:58- Thanks a lot.- Mohammed, how did you find this property?
0:22:58 > 0:23:02We went through the auction book, visited the properties from outside.
0:23:02 > 0:23:05This was one that we really liked.
0:23:05 > 0:23:11We checked the Land Registry for prices in this area.
0:23:11 > 0:23:15If it goes for anything from 450 to 460, we'll go for it.
0:23:15 > 0:23:19It was right in the middle, 455, and we, luckily, got it.
0:23:19 > 0:23:23'At the auction, Mohammed and Aniz had no idea
0:23:23 > 0:23:27'they were bidding against someone from the neighbouring property.'
0:23:31 > 0:23:36The situation is, the planning department won't allow anything
0:23:36 > 0:23:40which changes the character of these two houses.
0:23:40 > 0:23:44So if it was one house, or we do anything together,
0:23:44 > 0:23:48then it's easier, that's what they recommended to him.
0:23:48 > 0:23:51That's why he was desperate to buy this property.
0:23:51 > 0:23:57He suggested that we should do something together. We go to the council together.
0:23:57 > 0:24:01Then it should be easy for both of us.
0:24:01 > 0:24:06# We are neighbours... #
0:24:06 > 0:24:11'Sounds like joining forces to strengthen their negotiating clout
0:24:11 > 0:24:15'could be a very good way to approach the planners.'
0:24:16 > 0:24:19Aniz, are you happy to work with your neighbour?
0:24:19 > 0:24:23If he is cooperative with us, he is also going to gain from it.
0:24:23 > 0:24:29Otherwise, in the short term, what we are going to do is rent it out.
0:24:29 > 0:24:34That's the long-term plan. Let's see how it goes.
0:24:36 > 0:24:41'They've got plans to demolish the houses and build luxury apartments
0:24:41 > 0:24:43'or two townhouses.
0:24:43 > 0:24:47'But in the short term, they're planning to let the property out
0:24:47 > 0:24:53'while waiting for their planning applications to be approved.
0:24:53 > 0:24:57'They've estimated it could take more than £10,000
0:24:57 > 0:25:03'to sort the water damage and bring it up to a rentable standard.'
0:25:03 > 0:25:07If we demolish this house, we're not going to spend this much money.
0:25:07 > 0:25:12If we are going to extend and keep this, then we'll have to.
0:25:14 > 0:25:16'It appears to be a long-term project
0:25:16 > 0:25:20'and part of their plan is to deal with the parking problem.'
0:25:20 > 0:25:25If we build the townhouses, we would ideally demolish this and go back.
0:25:25 > 0:25:27This is too close to the road.
0:25:27 > 0:25:32But the garden is huge and we have access from the back.
0:25:32 > 0:25:34We can have parking at the back.
0:25:34 > 0:25:39- I'm really excited to see how this is going to turn out. Good luck.- Thanks very much.
0:25:39 > 0:25:43Mohammed and Aniz have a lot of decisions to make -
0:25:43 > 0:25:48renovate the property, extend the property or demolish the property?
0:25:48 > 0:25:54Everything depends on negotiations with the owner of the neighbouring house.
0:25:54 > 0:25:58It could be a very lucrative project for all involved.
0:25:58 > 0:26:02You can find out how it all pans out later in the programme.
0:26:03 > 0:26:08'Coming up, in Derby, is this flat all it's cracked up to be?'
0:26:08 > 0:26:13Big question is, is it historic or is it still happening?
0:26:13 > 0:26:18'We return to London, to this house with lots of land at the back,
0:26:18 > 0:26:21'right on the main road.'
0:26:21 > 0:26:24It's like a motorway.
0:26:24 > 0:26:28'First, back to Cornwall, where duties have been evenly divided...'
0:26:28 > 0:26:33I run all over the place. Valerie's role is making sandwiches.
0:26:36 > 0:26:40'Time now, to return to Pool, near Redruth in Cornwall.
0:26:40 > 0:26:45'This is where former milkman Gordon bought this end-of-terrace cottage
0:26:45 > 0:26:47'right on the road for 56,000.
0:26:47 > 0:26:53'The property had problems - wiring, damp and a backyard full of sheds.
0:26:53 > 0:26:59'Gordon's partner Valerie revealed that he's a glutton for punishment.'
0:26:59 > 0:27:04Sometimes I say, "Let's get one that you haven't got to do anything to."
0:27:04 > 0:27:10That doesn't satisfy him. He likes ones that you've got to pull this down, look in there.
0:27:10 > 0:27:12It's very satisfying to me.
0:27:13 > 0:27:18'Well, five months on - and what a transformation!
0:27:18 > 0:27:23'That drab exterior has been rerendered and painted white.
0:27:23 > 0:27:26'The granite corner stones have been exposed,
0:27:26 > 0:27:29'which has brought character to the building.
0:27:29 > 0:27:33'Inside, the layout has changed completely.
0:27:33 > 0:27:36'The dividing wall between the rooms has gone
0:27:36 > 0:27:42'and the stairs have been relocated, creating a spacious living area.
0:27:43 > 0:27:49'At one end, a superb kitchen has been installed.
0:27:49 > 0:27:53'The damp's been treated, new windows have gone in
0:27:53 > 0:27:56'and lovely slate sills added.
0:27:58 > 0:28:01'Upstairs, a corridor has been added to the back wall.
0:28:01 > 0:28:05'It's made the bedrooms a little smaller,
0:28:05 > 0:28:11'but Gordon and his team have exposed some beautiful stone work.
0:28:11 > 0:28:16'There was no need for that Jack and Jill bathroom in the end.
0:28:16 > 0:28:18'By moving the staircase,
0:28:18 > 0:28:25'Gordon's managed to squeeze in a new separate bathroom.'
0:28:25 > 0:28:29When we bought the house, there wasn't a bathroom.
0:28:29 > 0:28:32I had several ideas,
0:28:32 > 0:28:37but I came up with this after talking to an architect friend.
0:28:37 > 0:28:40It's a small room, but it's all you need.
0:28:40 > 0:28:42'The property's been rewired,
0:28:42 > 0:28:48'replumbed and central heating installed so it's like a new-build.
0:28:48 > 0:28:54'The space in the cupboard with the flying freehold has been put to use.
0:28:54 > 0:28:58'The extension that housed the kitchen is a utility room.
0:28:58 > 0:29:02'Gordon's also sorted out that tiny kitchen.'
0:29:02 > 0:29:06There wasn't much kitchen here. It was non-existent.
0:29:06 > 0:29:08Just a sink out the back.
0:29:08 > 0:29:12I'm very pleased. I never expected it to come out like this.
0:29:12 > 0:29:16It's taken a lot of hard work and planning.
0:29:16 > 0:29:18I'm really pleased.
0:29:18 > 0:29:23'Quite right too! Valerie has been hands-on as well.'
0:29:23 > 0:29:27I think she's got a lot of pleasure out of choosing the kitchen
0:29:27 > 0:29:30and the tiles up there.
0:29:30 > 0:29:33She's good at adding the touches to it.
0:29:33 > 0:29:38# Why don't you come over, Valerie? #
0:29:38 > 0:29:40'It wasn't all Valerie, though.
0:29:40 > 0:29:43'Gordon was kept busy throughout.'
0:29:43 > 0:29:45Gordon was the site foreman.
0:29:45 > 0:29:48He went round picking up all the stuff.
0:29:48 > 0:29:53It was hectic, some days, going backwards and forwards.
0:29:53 > 0:29:55Whatever they wanted, get it here.
0:29:55 > 0:30:01If they were short of cement or timber, whatever, nails, screws.
0:30:01 > 0:30:07I've run all over the place. Valerie's role is making sandwiches.
0:30:07 > 0:30:11'After all, keeping the builders well fed IS half the battle.
0:30:11 > 0:30:15'The two sheds in the yard have been demolished
0:30:15 > 0:30:21'and new paving's been laid so it's more inviting out there.
0:30:21 > 0:30:23'Gordon even kept the outside loo for emergencies.
0:30:23 > 0:30:28'How long did it take to get everything done?'
0:30:28 > 0:30:3120 weeks, which is longer than I anticipated,
0:30:31 > 0:30:35because of all the extra problems.
0:30:35 > 0:30:38That end of the building, we had to underpin,
0:30:38 > 0:30:42because there wasn't a lot of foundation to that side of it.
0:30:42 > 0:30:45That added to the challenge!
0:30:45 > 0:30:47'Did it add to the cost?
0:30:47 > 0:30:54'You may remember Gordon had a healthy budget of 30,000 to 35,000.'
0:30:54 > 0:30:57We've gone over the budget. It's more like 65,000.
0:30:57 > 0:31:01That is just what I've spent on refurbishing the place.
0:31:01 > 0:31:04We've also got legal costs and the purchase price.
0:31:04 > 0:31:11'That spend of 65,000 represents £30,000 over his upper limit.
0:31:11 > 0:31:17'Quite an overspend, but he really has made a lovely job of this.
0:31:17 > 0:31:22'Time for two local property experts to give their impressions
0:31:22 > 0:31:24'of Gordon's latest project.'
0:31:24 > 0:31:28They've done such an amazing transformation.
0:31:28 > 0:31:33You take a step back and it really is an eye-opener.
0:31:33 > 0:31:38The layout's really, really good. Limited space on offer.
0:31:38 > 0:31:43A nice lounge-kitchen downstairs, bathroom upstairs,
0:31:43 > 0:31:45which is definitely a benefit.
0:31:45 > 0:31:49Everything they've done is to a high standard.
0:31:49 > 0:31:53It certainly would derive the most value possible.
0:31:53 > 0:31:55I wouldn't have done anything differently.
0:31:55 > 0:31:58I think the standard's very, very good.
0:31:58 > 0:32:03Any potential purchaser or tenant is going to be very pleased.
0:32:03 > 0:32:06'Has all the hard work produced any profit?
0:32:06 > 0:32:08'Gordon paid £56,000 for the property
0:32:08 > 0:32:13'and reckons that his budget before costs is 65,000,
0:32:13 > 0:32:17'making a total of £121,000.
0:32:17 > 0:32:19'What could the place be worth?'
0:32:22 > 0:32:26I would recommend an asking price in the region of £125,000.
0:32:26 > 0:32:30I would place this property on the market in the region of £130,000,
0:32:30 > 0:32:35but likely to achieve under the Stamp Duty level of £125,000.
0:32:35 > 0:32:40'If the house did sell for 125,000,
0:32:40 > 0:32:47'Gordon's profit would be just £4,000, and there are costs to come out of that as well.'
0:32:47 > 0:32:51That would be somewhere near. Yeah, we would be OK with that.
0:32:51 > 0:32:55It's not the best time to be selling, though.
0:32:55 > 0:32:58I might go down the rental road to start with.
0:32:58 > 0:33:00Then see how it goes in the future.
0:33:00 > 0:33:06'Yes, that might be the best option. How much rent could the house earn?'
0:33:06 > 0:33:13For rental, I would expect to achieve in the region of £550 per calendar month.
0:33:13 > 0:33:19On the rental market, I'd expect to achieve in the region of £550 per calendar month.
0:33:19 > 0:33:21I would have thought 575...
0:33:21 > 0:33:24550, 575.
0:33:24 > 0:33:27Um... We'll have to test that.
0:33:27 > 0:33:32'Well, it's good news, as Gordon HAS managed to rent out the property
0:33:32 > 0:33:35'for more than the agents estimated.
0:33:35 > 0:33:39'He's getting £625 a month, so that's great.
0:33:39 > 0:33:43'Is he pleased he took a chance and bought this cottage?'
0:33:43 > 0:33:46Yes. I am.
0:33:46 > 0:33:49I'm pleased with the outcome.
0:33:49 > 0:33:54It's had its problems, but we've overcome the problems.
0:33:54 > 0:33:57I mean, it's quite a tidy property.
0:34:03 > 0:34:06'I'm in Derby in the east Midlands.
0:34:06 > 0:34:08'This city's played a central role
0:34:08 > 0:34:13'in the manufacturing history of Britain,
0:34:13 > 0:34:17'from the Industrial Revolution to modern car manufacture.'
0:34:17 > 0:34:22I'm in the Five Lamps area of Derby, close to the city centre,
0:34:22 > 0:34:26popular with students, so good from an investment point of view.
0:34:26 > 0:34:30The property I'm here to see could tick the boxes.
0:34:30 > 0:34:36It's a one-bedroom flat in this uninspiring looking block. Let's look inside.
0:34:36 > 0:34:43'This second-floor flat is one of a block of nine and had a guide price of £45,000.'
0:34:43 > 0:34:47So what have we got? Small entrance area there.
0:34:47 > 0:34:53Bathroom and loo to your left. They're in a right old state.
0:34:53 > 0:34:57Worse than that, no natural light or ventilation.
0:34:57 > 0:35:02You want to find a solution, if you could. Through to the kitchen.
0:35:02 > 0:35:05Again, very small, and the units?
0:35:05 > 0:35:09I doubt they've been replaced since the place was built.
0:35:09 > 0:35:13Here's another throwback to that era - a serving hatch.
0:35:13 > 0:35:18Perfect if you're serving roasted elephant. Absolutely massive.
0:35:18 > 0:35:23The good news, though, is that this is a stud partition wall.
0:35:23 > 0:35:29It wouldn't be too much effort to take that out, create an open-plan living room/kitchen.
0:35:29 > 0:35:34That's what you need to do to give the flat more space!
0:35:34 > 0:35:40# It was acceptable in the '80s... #
0:35:40 > 0:35:44'Removing the partition wall and updating the kitchen
0:35:44 > 0:35:48'could make this room the biggest selling point.'
0:35:50 > 0:35:55Well, here in the bedroom, and that's not good news.
0:35:55 > 0:35:58Cracks in the wall are never good.
0:35:58 > 0:36:00Diagonal cracks, they're even worse.
0:36:00 > 0:36:06Cracks that get gradually wider, they're worse still.
0:36:06 > 0:36:10What am I thinking? Unusual to find that in a block of flats.
0:36:10 > 0:36:13It looks like there has been some settlement.
0:36:13 > 0:36:19The big question is, is it historic or is it still happening?
0:36:19 > 0:36:21Somebody's stuck these bits of tape,
0:36:21 > 0:36:26a make-shift way to find out whether or not the cracks are moving.
0:36:26 > 0:36:30They've been there for a long time. They haven't fallen off.
0:36:30 > 0:36:33To my mind, that is historic.
0:36:33 > 0:36:38So there could be good news, but it needs to be checked out.
0:36:38 > 0:36:42'Outside, there's definitely some good news.'
0:36:44 > 0:36:48A real bonus, because at the rear there is a set of garages.
0:36:48 > 0:36:52As an owner of the flat, you own one of these garages.
0:36:52 > 0:36:57In a city centre like this, parking is at a premium.
0:36:57 > 0:37:01If you haven't got a car or you fancy increasing your income,
0:37:01 > 0:37:03what about renting one out?
0:37:03 > 0:37:07Around here, £20, £25 a week? That adds a lot to your bottom line.
0:37:07 > 0:37:13'So, with the modest guide price of 45,000, was this a good investment?
0:37:13 > 0:37:17'Let's find out from the man who sold it at auction.'
0:37:19 > 0:37:21If it was me,
0:37:21 > 0:37:26I'd make sure that the wall between the living room and kitchen came out
0:37:26 > 0:37:31for an open-plan living/kitchen, and the bathroom needs refitting.
0:37:31 > 0:37:33It's just routine stuff.
0:37:33 > 0:37:38'What rental value could it bring in once brought up to modern standard?'
0:37:40 > 0:37:46My estimate of rental value would be between £475 and £500 a calendar month.
0:37:46 > 0:37:51'What could the flat be worth if the new owner did it up to sell on?'
0:37:51 > 0:37:55It's going to be linked to its investment value,
0:37:55 > 0:37:59certain to be sold to the investment market at a value of about £65,000.
0:37:59 > 0:38:03It may not be the most inspiring of flats
0:38:03 > 0:38:08and that crack needs investigation, although I think it's probably not an issue.
0:38:08 > 0:38:15Spend a little bit of money on it. It's in a great location. A good return on your investment, I think.
0:38:15 > 0:38:20Let's see who agreed with me when it went under the hammer.
0:38:20 > 0:38:24It's an upper floor one-bedroom flat, good location.
0:38:24 > 0:38:28Who's got 40 to start me? 40,000 is bid.
0:38:28 > 0:38:31At £40,000 bid. It's a cheap flat.
0:38:31 > 0:38:3441 somewhere else? 41 is bid here.
0:38:34 > 0:38:36Thank you. At 41.
0:38:36 > 0:38:4042 I have. £42,000. 43 for you?
0:38:40 > 0:38:4543 is bid. At 43. 44? 44,000.
0:38:45 > 0:38:47At £44,000...
0:38:47 > 0:38:5245,000, just in time. A fresh bidder. 46? 46? 45 seated.
0:38:52 > 0:38:5746, against you? At £45,000. All finished and done?
0:38:57 > 0:39:00Once. Going twice.
0:39:00 > 0:39:03Third chance?
0:39:03 > 0:39:04Sold at 45,000.
0:39:04 > 0:39:09'Talk about fast work! the new owner of the flat is Carro, on the right,
0:39:09 > 0:39:11'who works in education.
0:39:11 > 0:39:14'She got the flat on her first bid.'
0:39:14 > 0:39:16# It's so easy... #
0:39:16 > 0:39:21'I met her and her daughter Jessica to hear about their plans.'
0:39:21 > 0:39:24Jessica, Carro, lovely to meet you both.
0:39:24 > 0:39:30- Hi.- Tell me why you wanted to buy the flat.- It was a whim.
0:39:30 > 0:39:33- A whim?- A whim.- What do you mean?
0:39:33 > 0:39:39I always thought that buying at auction would be fun, so I found myself at an auction with a friend.
0:39:39 > 0:39:43I bid for it and it was my one and only ever auction bid.
0:39:43 > 0:39:48- You arrive at the auction...?- Yeah. - Just for a day out with your mate?
0:39:48 > 0:39:53I was going with a friend who was selling a property, as moral support.
0:39:53 > 0:39:57I always thought it would be interesting to buy.
0:39:57 > 0:40:03I had seen this and thought, "That's a good price" but hadn't gone much further.
0:40:03 > 0:40:09- So you were of a mind to buy.- It had flittered across my bird brain!
0:40:09 > 0:40:12'Bidding on a whim may seem reckless,
0:40:12 > 0:40:16'but Carro did have the required funds in place,
0:40:16 > 0:40:19'essential when buying at auction.
0:40:21 > 0:40:25'She's bought and renovated properties in the past,
0:40:25 > 0:40:27'so she's not totally unprepared.'
0:40:27 > 0:40:32- What is the plan for it, then? - New kitchen.- Open it up.
0:40:32 > 0:40:36- Put a breakfast bar in. - New bathroom.
0:40:36 > 0:40:39- What budget?- If it came in at under eight, I'd be pleased.
0:40:39 > 0:40:47- If it's more than ten, I shall be looking over the top of my glasses. - And what about timescale?
0:40:47 > 0:40:49- Two weeks.- What?
0:40:49 > 0:40:52I think we can do it in two weeks.
0:40:52 > 0:40:55Run me through the list to do.
0:40:55 > 0:40:59- New bathroom, new kitchen, decorate throughout.- New floor.
0:40:59 > 0:41:02- New storage heaters. - Probably a rewire.
0:41:02 > 0:41:07I don't like the fact that there's no natural light in the bathroom.
0:41:07 > 0:41:10- Who's doing the work?- A builder.
0:41:10 > 0:41:13- Have you told him the timescale? - Yes.- And he said?
0:41:13 > 0:41:18- "I'll give you your money back if I don't do it in time." - No!- It was worth a try!
0:41:18 > 0:41:24We have worked with him for a long time so speak each other's language.
0:41:26 > 0:41:34'Two weeks to replace a kitchen, a bathroom, remove a wall and put a window into the communal area?
0:41:34 > 0:41:38'This project requires a veritable superman, or woman.
0:41:38 > 0:41:43'Let's meet Andy, the superhero builder!'
0:41:43 > 0:41:46- What do you think about the flat? - Yeah. It's not a bad flat.
0:41:46 > 0:41:51Take a bit of doing up. We're on the fortnight, apparently.
0:41:51 > 0:41:53- You've heard about that?- Yeah.
0:41:53 > 0:41:57What did you say when you heard that timescale?
0:41:57 > 0:41:59I smiled at her, like I usually do.
0:41:59 > 0:42:01But realistically...
0:42:01 > 0:42:06I think the kitchen and bathroom we can get in in a fortnight.
0:42:06 > 0:42:11Then there's the wiring and the heaters, so that might take longer.
0:42:11 > 0:42:15A month's more realistic, but don't tell her I said that.
0:42:15 > 0:42:18She'll never forgive me.
0:42:18 > 0:42:22'With all his years of experience, what does Andy think
0:42:22 > 0:42:24'about the crack in the wall?'
0:42:24 > 0:42:30A few years after it was built, the building went...
0:42:30 > 0:42:34I don't think it'll go further. I think it's settled.
0:42:34 > 0:42:38# A hero! I'm holding out for a hero... #
0:42:38 > 0:42:41'It's going to take a heroic effort
0:42:41 > 0:42:44'if Andy is to turn this job around in two weeks.
0:42:44 > 0:42:48'Perhaps Carro will think twice before she bids on a whim.'
0:42:48 > 0:42:56I don't think I could go to auction again. That might raise domestic issues.
0:42:56 > 0:43:01- Your partner, was he vaguely clued-up...?- I rang him up.
0:43:01 > 0:43:03I said, "I bought it."
0:43:03 > 0:43:08He said, "That's lovely, darling. What have you bought?"
0:43:08 > 0:43:13- I said, "A flat." And there was a very long pause.- And after?
0:43:13 > 0:43:15He'll be here with the paint and a roller.
0:43:15 > 0:43:20- I wish you all the best. Good luck. You'll need it.- Thank you.
0:43:20 > 0:43:22Thank you. LAUGHTER
0:43:22 > 0:43:25- CHUCKLES - What a funny story.
0:43:25 > 0:43:29Carro's got some challenges ahead sorting this place out.
0:43:29 > 0:43:34It wouldn't be so bad if she hadn't set this two-week timescale!
0:43:34 > 0:43:39Even with the help of daughter Jessica and builder Andy,
0:43:39 > 0:43:44I think she's got a challenge ahead. Find out later in the show.
0:43:47 > 0:43:50Doing up a property takes longer than you imagine.
0:43:50 > 0:43:53There are all sorts of reasons why delays happen.
0:43:53 > 0:43:59- Have our buyers raced ahead or have they been held up?- Let's find out.
0:43:59 > 0:44:02'We're back to the busy streets of London
0:44:02 > 0:44:06'to catch up with developers Aniz and Mohammed.
0:44:06 > 0:44:10'They paid £455,000 for this water damaged and unloved house
0:44:10 > 0:44:16'on the very busy A1 in East Finchley.
0:44:16 > 0:44:20'They had a few options, but ideally wanted to demolish the whole place
0:44:20 > 0:44:22'and build luxury flats.'
0:44:22 > 0:44:26# Knock it down! Knock it down! Knock it down! Yeah! #
0:44:26 > 0:44:29'They'd even joined forces with their neighbour
0:44:29 > 0:44:33'to help them get planning permission.'
0:44:33 > 0:44:39They won't allow anything which changes the character of these two houses.
0:44:39 > 0:44:45So if it was one house or if we do anything together, it's much easier.
0:44:45 > 0:44:50He suggested, which is a good idea, that we go to the council together.
0:44:50 > 0:44:56What he extends, we should do the same and it should be easier for both of us.
0:45:02 > 0:45:05'The main asset was the 120-foot garden
0:45:05 > 0:45:07'which overlooked the golf course.
0:45:07 > 0:45:09'But the house had no parking,
0:45:09 > 0:45:14'giving them something else to sort, along with the planning permission.
0:45:14 > 0:45:18'It's now seven months since we saw the place,
0:45:18 > 0:45:19'which was in a pretty sorry state.
0:45:19 > 0:45:22'How are they getting on?
0:45:25 > 0:45:30'The house is still standing, and has been renovated and rented out
0:45:30 > 0:45:33'while they wait for planning permission.
0:45:33 > 0:45:36'Despite Mohammed's grand plans,
0:45:36 > 0:45:40'he and Aniz have major obstacles to overcome
0:45:40 > 0:45:44'before they and their neighbour can demolish and rebuild.
0:45:48 > 0:45:55'It turns out that the access to the rear is owned by the local water board.
0:45:55 > 0:46:02'Any plans for off-street parking will need to be negotiated with them separately.'
0:46:02 > 0:46:05There's no parking. Too close to the street.
0:46:05 > 0:46:09When they built these houses there was hardly any traffic.
0:46:09 > 0:46:13Now, there's so much traffic. It's like a motorway.
0:46:13 > 0:46:19'The parking is a priority but that's not Mohammed's only concern.
0:46:19 > 0:46:24'It's a conservation area and there's local opposition
0:46:24 > 0:46:30'from people who don't want to see the character buildings disappear.
0:46:30 > 0:46:32'While negotiations continue,
0:46:32 > 0:46:37'at least this semi has been refurbished and is being lived in.'
0:46:37 > 0:46:41I had in mind that we'll change the bathroom, the kitchen.
0:46:41 > 0:46:45But if we demolish the building, there's no point spending money.
0:46:45 > 0:46:49I mean, to do this work has cost me £8,500.
0:46:49 > 0:46:55The tenants are hardly paying me anything. They're looking after the place.
0:46:55 > 0:46:59Our main concern is that somebody's living here
0:46:59 > 0:47:02until we get the planning permission.
0:47:02 > 0:47:05'Mohammed's convinced that, despite the problems,
0:47:05 > 0:47:06'his plans will go ahead
0:47:06 > 0:47:10'and soon he'll be building the development of his dreams.'
0:47:10 > 0:47:15# Dream on, dreamer Life gets in your way... #
0:47:15 > 0:47:19My main idea is that I have a nice apartment in this building,
0:47:19 > 0:47:21with a view to the golf course.
0:47:21 > 0:47:24That's my aim, and my dream as well.
0:47:24 > 0:47:27'Of course, like any developer worth their salt,
0:47:27 > 0:47:30'Mohammed has a Plan B.'
0:47:30 > 0:47:37If we don't get the planning permission to have the apartments, we can have two townhouses.
0:47:37 > 0:47:42The first option is the apartments. If not, the townhouses.
0:47:44 > 0:47:49'This is a work in progress, but have they added value so far?
0:47:49 > 0:47:52'Will all the negotiations be worth it?
0:47:52 > 0:47:58'Let's ask a couple of local estate agents for their opinion, first about the house itself.'
0:47:58 > 0:48:03A nice house, good three bedrooms up top.
0:48:03 > 0:48:08The kitchen needs a good old once over. Nice it leads into the garden.
0:48:08 > 0:48:14It's your main selling feature, the size and the golf course.
0:48:14 > 0:48:19Parking is crucial. Without any sort of parking whatsoever,
0:48:19 > 0:48:23it massively affects the value and the saleability.
0:48:23 > 0:48:29Not a lot of people want to spend a decent amount on a property without parking.
0:48:29 > 0:48:36'Mohammed and Aniz have, so far, spent a total of just over 460,000,
0:48:36 > 0:48:40'including the 455 grand purchase price, albeit on a basic renovation.
0:48:40 > 0:48:45'What could it make on the resale market?'
0:48:45 > 0:48:48If you refurbished it, made it very nice,
0:48:48 > 0:48:52I'd say probably about £550,000.
0:48:52 > 0:49:00Fully modernised, you're probably looking from £525,000 to about £550,000.
0:49:00 > 0:49:03'If a little more was spent renovating the property
0:49:03 > 0:49:07'and sorting out that parking, there could be a decent profit here.
0:49:07 > 0:49:12'But of course, Mohammed's master plan is to build ten flats here.
0:49:12 > 0:49:16'How much would each of those be worth, once completed?'
0:49:16 > 0:49:19Flats would work very well here.
0:49:19 > 0:49:21Again, the parking is key.
0:49:21 > 0:49:24The higher they get, the views will be fantastic.
0:49:24 > 0:49:27You'd get incredible views over the golf course.
0:49:27 > 0:49:31Flats vary hugely on specification.
0:49:31 > 0:49:34The block next door, they go for 300,000.
0:49:34 > 0:49:39A block down the road, £600,000, up to a penthouse for two million.
0:49:39 > 0:49:44It has to be very high-spec, decent size and make the most of the views.
0:49:44 > 0:49:48'This is speculative, as there are many hoops to jump through first.
0:49:48 > 0:49:53'If it all goes to plan, Mohammed and Aniz won't just build the flats,
0:49:53 > 0:49:57'they'll move in themselves.'
0:49:57 > 0:50:01We can't wait to put the application in and see some work happening.
0:50:01 > 0:50:07I said before that we would like to keep one apartment each for our use
0:50:07 > 0:50:09because I love this area.
0:50:13 > 0:50:17'Back to Derby, the Five Lamps district,
0:50:17 > 0:50:22'where a flat in this block, plus its garage, went to auction.
0:50:22 > 0:50:26'Carro paid 45,000 for it - amazingly an impulse buy.
0:50:26 > 0:50:32'With daughter Jessica, they were going to undertake renovation work -
0:50:32 > 0:50:38'new kitchen, new bathroom, new everything on a timescale of just two weeks!'
0:50:38 > 0:50:42- Who's doing the work?- A builder. - Have you told him the timescale?
0:50:42 > 0:50:46- Yes.- And he said?- "I'll give you your money back if we don't do it."
0:50:46 > 0:50:49- He did not.- It was worth a try!
0:50:49 > 0:50:54'Carro WAS joking about getting her money back,
0:50:54 > 0:51:00'but she did have faith that her regular superman builder, Andy,
0:51:00 > 0:51:02was the man for the job.
0:51:04 > 0:51:08'Eight weeks have passed and we've met up with Carro and Jessica
0:51:08 > 0:51:12'to see if that heat-of-the-moment buy burned a hole in their pocket.
0:51:14 > 0:51:19'The old living room has gone, replaced by a brighter space.
0:51:19 > 0:51:21'And the kitchen?'
0:51:25 > 0:51:28When we bought the place, it was one kitchen and a lounge.
0:51:28 > 0:51:31A huge massive hatch here.
0:51:31 > 0:51:35We decided to knock it down, initially to here.
0:51:35 > 0:51:39But when you opened the door, it just didn't work.
0:51:39 > 0:51:42We had the builder knock it further back.
0:51:42 > 0:51:47A brand new fitted kitchen. Space to sit, a breakfast bar.
0:51:47 > 0:51:50The cooker is hidden so if you're watching TV in the lounge
0:51:50 > 0:51:55you're not aware of the mess you've left behind.
0:51:55 > 0:51:59So we're really pleased with it. It's what we wanted.
0:51:59 > 0:52:03'The alterations are perfect for Carro and Jessica's plan
0:52:03 > 0:52:06'to rent the property out.
0:52:06 > 0:52:09'The bathroom has had a total makeover,
0:52:09 > 0:52:13'with a new suite, tiles and flooring.
0:52:13 > 0:52:16'The bathroom and kitchen aren't all that's new.'
0:52:16 > 0:52:20The majority of what we've done is cosmetic.
0:52:20 > 0:52:24We put the floors down, really neutral decor.
0:52:24 > 0:52:26Blinds for a very low-key finish.
0:52:26 > 0:52:30There were some big cracks in that wall that were worrying.
0:52:30 > 0:52:34It was historic movement so no problem.
0:52:34 > 0:52:37We went for a really slimline heater
0:52:37 > 0:52:41to maximise space where anyone would want to put their furniture.
0:52:41 > 0:52:45The best bit about this room is that over here
0:52:45 > 0:52:49we've managed to get a shower cubicle in.
0:52:49 > 0:52:53What we'd got in the bathroom was the tanks taking up space.
0:52:53 > 0:52:58We plastered the wall on that side and opened it up on this side.
0:52:58 > 0:53:03'A shower in the bedroom might not suit everybody.
0:53:03 > 0:53:08'If a couple end up here, it might help stop morning arguments
0:53:08 > 0:53:11'about whose turn it is in the bathroom.
0:53:11 > 0:53:17'The changes have definitely given the flat a bright new start.'
0:53:17 > 0:53:21The biggest job was making it liveable.
0:53:21 > 0:53:24It looked a lot worse than when we first got it.
0:53:24 > 0:53:29There was a lot of mess because we decided on a rewire,
0:53:29 > 0:53:33to put the tanks in the loft and to take a wall down.
0:53:33 > 0:53:39- It looked a whole lot worse. - The flat's really changed.
0:53:39 > 0:53:42It's brighter. It's liveable and it wasn't before.
0:53:44 > 0:53:48'Even though they could have gone overboard on the finish,
0:53:48 > 0:53:55'they stuck with a basic good quality renovation aimed at the rental market.
0:53:55 > 0:53:58'Carro was looking for a return as soon as possible.'
0:53:58 > 0:54:03I thought we could turn it round between two and three weeks.
0:54:03 > 0:54:08I'm very pleased to say that what I paid for was 17 days of labour,
0:54:08 > 0:54:11so I think I'm in my time frame.
0:54:11 > 0:54:14# I'm holding out for a hero... #
0:54:14 > 0:54:19'So, Andy the builder has managed to do a heroic job
0:54:19 > 0:54:25'of renovating the whole flat, including sorting out the hot and cold tanks and the rewiring.
0:54:25 > 0:54:30'Was he equally heroic when it came to the budget?'
0:54:30 > 0:54:33My budget was between eight and ten.
0:54:33 > 0:54:37I was nurturing a secret hope that it might come in as less.
0:54:37 > 0:54:39I've spent 9,000 so I'm pleased.
0:54:39 > 0:54:44I've sold the garage for 5,000, which I didn't particularly want.
0:54:44 > 0:54:48If you offset them, I've only spent four!
0:54:48 > 0:54:51'That garage could have been a handy asset,
0:54:51 > 0:54:56'but with the town centre five minutes' walk away,
0:54:56 > 0:55:00'Carro felt it didn't add to the investment, and cashed in on it.
0:55:00 > 0:55:04'That spend of £4,000 added to her purchase price of 45,000
0:55:04 > 0:55:08'takes her total to around £49,000.
0:55:08 > 0:55:12'Bearing in mind Carro bought this flat on a whim
0:55:12 > 0:55:15'with her first and only auction bid, that was a risk.
0:55:17 > 0:55:21'So, with £49,000 outlay to recoup,
0:55:21 > 0:55:26'let's hear what two local estate agents think about Carro's work.'
0:55:26 > 0:55:32The refurbishment of the kitchen is excellent. The bathroom's very good.
0:55:32 > 0:55:37This has been brought to quite a nice standard for rental.
0:55:37 > 0:55:42Opening up the kitchen to the lounge gives an extra sense of space.
0:55:42 > 0:55:47Putting a shower in the bedroom is a little bit unusual.
0:55:47 > 0:55:51But it's not going to stop somebody renting it or buying it.
0:55:51 > 0:55:54'Carro's opted to rent the property out.
0:55:54 > 0:56:00'What return might she expect on her £49,000 investment?'
0:56:00 > 0:56:03It's likely to rent for £395 per calendar month.
0:56:03 > 0:56:08If I was marketing this property, I'd put it on for £425 per calendar month.
0:56:08 > 0:56:13I think it will get 425. I wouldn't be disappointed with 400.
0:56:13 > 0:56:16'That figure of £425
0:56:16 > 0:56:21'would give Carro an annual yield of just over 10%,
0:56:21 > 0:56:25'a very impressive rate of return, and the estate agents reckon
0:56:25 > 0:56:28'a resale could achieve a possible £55,000.
0:56:28 > 0:56:35'That would leave her a pre-tax profit of only around six grand.
0:56:35 > 0:56:41'Has that possible rental income proved to be the icing on the cake?'
0:56:41 > 0:56:46Although I was terrified and horrified when the hammer went down,
0:56:46 > 0:56:51"Ah! What have I done?" I'm really glad I did it.
0:56:54 > 0:56:58We'll have more thrills from the auctions next time.
0:56:58 > 0:57:02- Make sure you keep watching Homes Under The Hammer.- Goodbye.
0:57:19 > 0:57:23Subtitles by Red Bee Media Ltd
0:57:23 > 0:57:26E-mail subtitling@bbc.co.uk