0:00:02 > 0:00:07Hello. In today's uncertain economic climate, it can be difficult to find your house heaven.
0:00:07 > 0:00:11Whether they're large or small, auctions are a great place to look.
0:00:11 > 0:00:18So today we're following brave buyers who are purchasing their homes under the hammer.
0:00:42 > 0:00:49If you're a potential investor and fancy a bet on property, you may end up at the auction.
0:00:49 > 0:00:54The atmosphere is electric, the action fast and furious.
0:00:54 > 0:00:58So here are the properties that inspired our buyers today.
0:00:59 > 0:01:05In Congleton, Cheshire, there's space here for a new build, but there's a problem.
0:01:05 > 0:01:08Ideally, you want it to be level.
0:01:08 > 0:01:15In Pimlico, south-west London, this one-bed flat may be small, but it has a valuable piece of space.
0:01:15 > 0:01:18I didn't expect this - a balcony!
0:01:18 > 0:01:26And there's a minor hitch at this three-bed semi-detached in Derby where you could fall INTO space.
0:01:26 > 0:01:29Where's the banister?!
0:01:31 > 0:01:37All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:37 > 0:01:40- under the hammer. - It's yours, madam.
0:01:41 > 0:01:48Less than an hour away from Manchester is the peaceful Cheshire town of Congleton.
0:01:48 > 0:01:55Amongst other things, they make golf balls here,, so will this be a double bogey or a hole in one?
0:01:56 > 0:02:02So this is a beautiful part of the country and a very desirable place to live.
0:02:02 > 0:02:06Here I am, just two minutes' walk from the centre of Congleton,
0:02:06 > 0:02:11and houses round here are lovely and they're quite expensive.
0:02:11 > 0:02:17So when you hear about something that came up at the auction with a guide price of £140,000,
0:02:17 > 0:02:20it's got to be worth a second look.
0:02:20 > 0:02:27However, things aren't quite as good as they first seem because you're not buying a property,
0:02:27 > 0:02:32you're buying a bit of land. Worse than that, it's the garden to that house there.
0:02:32 > 0:02:39Not very inspiring at first glance. However, I do know something you don't. It's through there.
0:02:39 > 0:02:47Because come through here and the plot extends about another, I don't know, 40 or 50 feet.
0:02:47 > 0:02:53Now, as you can see, this rear part of the plot is actually extremely hilly,
0:02:53 > 0:02:57which does give a few issues. For a building plot, you want it level.
0:02:57 > 0:03:02On the other hand, it does give great character to the plot.
0:03:02 > 0:03:06# They sold you the view from a hill
0:03:06 > 0:03:11# They told you that the view from the hill... #
0:03:11 > 0:03:17'The great news about this land is that it has outline planning permission for a dwelling,
0:03:17 > 0:03:23'so that guide price of £140,000 makes sense because building plots are rare beasts in this area.'
0:03:23 > 0:03:29Before you take on a project like this, you need to consider your finances quite carefully.
0:03:29 > 0:03:33If you're after a mortgage, save up a reasonable deposit -
0:03:33 > 0:03:38probably 25% for the land and 15% for the cost of the build.
0:03:38 > 0:03:42It's also a very specialised area, so there aren't many lenders
0:03:42 > 0:03:49and often they'll lend it to you in stages, for instance, when the foundations go in or the roof on.
0:03:49 > 0:03:54Speak to a specialist broker. It's something to bear in mind.
0:03:54 > 0:03:58'As we all know, borrowing for mortgages isn't so easy now
0:03:58 > 0:04:03'and you need funding to buy the plot and also to build on it.
0:04:03 > 0:04:09'But why is this garden plot being sold separately when there's a lovely house here already?
0:04:09 > 0:04:13'The person to ask is the lady who sold it, Pat.'
0:04:13 > 0:04:20I've tried to sell it as a whole and because of the climate at the moment, it wasn't going to go.
0:04:20 > 0:04:25So now I did the land and now it's the house.
0:04:25 > 0:04:31'Due to the sluggish market, Pat's selling the land and house separately to maximise her return.
0:04:31 > 0:04:36'After 40 years, she's decided to downsize to another part of Cheshire
0:04:36 > 0:04:43- 'but she can't recommend this area highly enough.' - It's the most delightful place.
0:04:43 > 0:04:45Absolutely lovely.
0:04:45 > 0:04:50I've always been happy here. It's the best place to live in Congleton.
0:04:50 > 0:04:57It's three and a half minutes to the town centre and two minutes to the most wonderful countryside.
0:04:57 > 0:05:04- What could you ask for more? - 'Pat's passionate about this part of the world and you can see why.
0:05:04 > 0:05:10'But will a local estate agent be as keen on the potential of this building plot?'
0:05:13 > 0:05:19It's a super plot. You just have to look at the house next door. It's a lovely house.
0:05:19 > 0:05:23And it's just the situation and the surroundings. So quiet.
0:05:23 > 0:05:29'With the plot guided at 140,000 and build costs for a three or four-bedroom house
0:05:29 > 0:05:35'likely to be around £200,000, could that possible total outlay of £340,000
0:05:35 > 0:05:37'generate a good profit?'
0:05:37 > 0:05:42I would imagine somewhere between £450,000, maybe £500,000.
0:05:42 > 0:05:46It depends on the quality of finish and the market at the time.
0:05:46 > 0:05:52'That is an encouraging valuation so the prospects here are definitely looking bright.'
0:05:52 > 0:05:56The beauty of buying a plot and building your own place on it
0:05:56 > 0:06:03is that you end up with exactly what you want and often at a discount from the ready-made price.
0:06:03 > 0:06:10So who do you reckon bought this? Was it a developer or a self-builder? Let's find out.
0:06:13 > 0:06:16This is an excellent building plot.
0:06:16 > 0:06:22Very well situated in the residential locality of Congleton. How much can we say?
0:06:22 > 0:06:25140 and away?
0:06:25 > 0:06:28140,000. 140. Two and a half.
0:06:28 > 0:06:32At 142 and a half. Five, sir? 145.
0:06:32 > 0:06:36Seven and a half. At 147 and a half. 150?
0:06:36 > 0:06:40Round me up. At 150. At 150,000.
0:06:40 > 0:06:45Two and a half on my right. At 152 and a half. 155.
0:06:45 > 0:06:50At 155. Yes, sir? 157 and a half. 160.
0:06:50 > 0:06:53At 160. At 160,000.
0:06:53 > 0:06:57I'll take one if it will help you. 161. 161.
0:06:57 > 0:07:01You're not going to miss it for one. 162. At 162.
0:07:01 > 0:07:03163. 164.
0:07:03 > 0:07:05At 165.
0:07:05 > 0:07:07At 165. 166.
0:07:07 > 0:07:10At 166.
0:07:10 > 0:07:14167. 168. At 168, at 168.
0:07:14 > 0:07:17169.
0:07:17 > 0:07:23At 169. 170. Never finish on a round figure, sir. It's bad policy. Go another one.
0:07:23 > 0:07:26At 170,000. And one, sir? 171.
0:07:26 > 0:07:29Two. At 172.
0:07:29 > 0:07:31At 172. At 172.
0:07:31 > 0:07:35173. Four. 174.
0:07:35 > 0:07:38Five, quickly. Five. At 175.
0:07:38 > 0:07:40Six? Yes?
0:07:40 > 0:07:44176. Thank you. At 176,500.
0:07:44 > 0:07:46Yes? 177.
0:07:46 > 0:07:51At 177. Thank you. At 177,000.
0:07:51 > 0:07:56At 177. It's with the gentleman on my left. At 177,000 once.
0:07:56 > 0:07:59Twice. The third and final time
0:07:59 > 0:08:02Thank you, ladies and gentlemen, for your patience.
0:08:02 > 0:08:10'So for £177,000, the new owners of the plot are brothers Jim and Paul.
0:08:10 > 0:08:14'They have a farming background, but 14 years ago sold their company
0:08:14 > 0:08:18'and moved into full-time developing.'
0:08:18 > 0:08:23- Jim, Paul, good to meet you both. - Nice to meet you. - Congratulations!- Thank you.
0:08:23 > 0:08:26Tell me why you wanted this plot.
0:08:26 > 0:08:30It was just basically where it stood. It's in a nice street, nice outlook.
0:08:30 > 0:08:37- And the type of thing we like to build in these sort of areas. - We like to build? Explain more.
0:08:37 > 0:08:43Well, we're a family - two brothers - building outfit.
0:08:43 > 0:08:49We like to do one-off houses, basically. Just something that'll hopefully appeal to a nice family.
0:08:49 > 0:08:55Something different that they can't replicate on a housing estate or whatever.
0:08:55 > 0:09:00- So you take on one project at a time and both work on it?- More or less,
0:09:00 > 0:09:05- apart from electrical and plumbing contractors. And plastering.- Great.
0:09:05 > 0:09:09We see it from start to finish. James does the design...
0:09:10 > 0:09:17- Then we both brick it. We do everything.- Roof on, all the bits and pieces.
0:09:17 > 0:09:23- So you'll meet the person who buys it?- Oh, yeah. - We give full back-up service.
0:09:23 > 0:09:29We'll put a bottle in the fridge for them, et cetera. And a nice card.
0:09:29 > 0:09:32# Welcome home
0:09:32 > 0:09:36# Welcome... #
0:09:36 > 0:09:41'For Jim and Paul, this isn't a case of building quick and moving on.
0:09:41 > 0:09:45'It's about taking care and making sure the new owners are happy.'
0:09:45 > 0:09:49So how long have you worked together as a building partnership?
0:09:49 > 0:09:5614 years as building, but we're a farming family. We've always worked together.
0:09:56 > 0:10:01- Fantastic. So you've discovered each other's foibles by now?- Yeah.
0:10:01 > 0:10:05- And still finding one or two... - We fall out every now and then.
0:10:06 > 0:10:12So why did you go down this route of small, one-off projects at a time?
0:10:12 > 0:10:15Em, not real man managers.
0:10:15 > 0:10:18We've done five houses in one year.
0:10:19 > 0:10:24But...we're not in it 100% for the money.
0:10:24 > 0:10:30We'll just have a nice life and as long as it'll pay all the bills, and leave us a little more,
0:10:30 > 0:10:33that's it. Don't want to be a multimillionaire.
0:10:33 > 0:10:36- # Who wants to be a millionaire? - I don't
0:10:36 > 0:10:41- # Have flashy flunkeys everywhere - I don't...- #
0:10:41 > 0:10:47'It's certainly a refreshing approach, but to continue in business you have to make money
0:10:47 > 0:10:54'by investing in the right project. Buying land can be a high-risk, high-reward business.'
0:10:54 > 0:11:01Let's talk about the plot you bought. A lot of people will be thinking it's somebody's garden.
0:11:01 > 0:11:08Very much so. But it has got the area to build a house of decent family proportions
0:11:08 > 0:11:15and with it being an elevated site we can get the height into the house, try to get a third storey in.
0:11:15 > 0:11:19And there's different ridge lines to the adjoining properties.
0:11:19 > 0:11:25We'll just try to make the best use of this actual location and the siting of it.
0:11:25 > 0:11:30'In fact, Jim's designed a three-storey house for this site.
0:11:30 > 0:11:35'It features four bedrooms, a family bathroom and two en suites.'
0:11:36 > 0:11:40How much is it going to cost to build? And what can it sell for?
0:11:40 > 0:11:43The house will be somewhere...
0:11:43 > 0:11:47Depending on ground conditions, between 200,000 and 220,000.
0:11:47 > 0:11:53- You're spending quite a lot on it. - Yes. And hopefully we'll sell it for 450,000-460,000.
0:11:53 > 0:11:58- Right.- Hopefully. So not a great deal of profit in it.
0:11:58 > 0:12:03- How long do you think it'll take? - We'll start in eight months' time
0:12:03 > 0:12:08and the whole process, with landscaping, et cetera, 9 months.
0:12:08 > 0:12:13- It's going to be a really interesting project. Good luck! - Cheers, thanks.
0:12:15 > 0:12:22'So with a total investment of around 400,000 and 17 months before they hand over the keys,
0:12:22 > 0:12:27'this is a big commitment for the brothers, but they enjoy it.'
0:12:27 > 0:12:35Jim and Paul have a great attitude to building. I'm sure it will be very in keeping with the area
0:12:35 > 0:12:40and somewhere that will make a fantastic family home.
0:12:40 > 0:12:44Still a few hoops to jump through. They need full planning permission.
0:12:44 > 0:12:48How will they get on? You can find out later in the show.
0:12:50 > 0:12:54'The hustle and bustle of Victoria in central London.
0:12:54 > 0:13:02'It's a real hub for transport. Bus, Underground and rail station - you name it, it's all here.'
0:13:03 > 0:13:09A short walk from Victoria Tube station in south-west London and I'm here in pretty Pimlico.
0:13:09 > 0:13:15This area is known for its grand garden squares and impressive Regency architecture
0:13:15 > 0:13:19and it boasts over 350 Grade 2-listed buildings.
0:13:21 > 0:13:27'That's a lot of heritage and it's an attractive catch for any auction goer.'
0:13:27 > 0:13:33If you can't afford Belgravia and Chelsea, maybe Pimlico is the place for you.
0:13:33 > 0:13:39It's considered a cheaper place to buy, much more affordable than its fashionable neighbours.
0:13:39 > 0:13:45I'm not sure what your idea of affordable is, but the last flat to sell on this road
0:13:45 > 0:13:47went for £800,000.
0:13:47 > 0:13:51The flat I'm here to see today had a guide price of 290 grand,
0:13:51 > 0:13:56so would you call that a steal? Let's see what you get for that.
0:13:56 > 0:14:02'It may seem a lot for a one-bedroom flat, but you do pay a premium for a property like this in London.
0:14:02 > 0:14:06'This area has housed some very important people.
0:14:06 > 0:14:10'The flat comes with 114 years left on its 125-year lease
0:14:10 > 0:14:16'and the way to it is through a bright, but rather cluttered hallway.'
0:14:19 > 0:14:25Wow! Now my first impression walking in here is, first of all, that it's terribly grim.
0:14:25 > 0:14:30But you have got amazingly high ceilings, views onto the roof terraces,
0:14:30 > 0:14:35an old '50s kitchen that looks straight out of a film set,
0:14:35 > 0:14:40but some lovely architectural features, deep skirting boards,
0:14:40 > 0:14:45and through here another room. It could be the lounge area.
0:14:45 > 0:14:53Some good space. I know this flat is 400 square feet and in London it's about price per square foot.
0:14:53 > 0:14:58A lot of work needs to be done. You've got a sludgy green ceiling.
0:14:58 > 0:15:05It is grim, but do you know what? I love it. And this flat really could be turned around.
0:15:05 > 0:15:08'It certainly has potential.
0:15:08 > 0:15:14'There's a small, shabby bedroom, but strip the flat to the bone and it's easy to see
0:15:14 > 0:15:17'how it could be transformed.'
0:15:18 > 0:15:23As you can see, these beautiful sash windows, which I love,
0:15:23 > 0:15:29are going to need some attention. But before doing anything, the new owner has to obtain permission
0:15:29 > 0:15:32because this is a conservation area.
0:15:32 > 0:15:37The Pimlico Conservation area was first designated in 1968,
0:15:37 > 0:15:43to protect the 19th-century terraces and squares developed by Sir Thomas Cubitt.
0:15:45 > 0:15:50Thomas Cubitt was a prolific builder in London from 1810
0:15:50 > 0:15:52until his death in 1855.
0:15:52 > 0:15:57He's held in high regard due to his skill and workmanship.
0:15:57 > 0:16:04I'm pretty sure it's not Mr Cubitt's fault, but I'm having trouble finding the bathroom!
0:16:04 > 0:16:08# Better keep searching Find the place... #
0:16:08 > 0:16:14'Surprisingly, the auction catalogue tells me it's on the rear mezzanine level of the communal areas.
0:16:14 > 0:16:17'Surely not?'
0:16:17 > 0:16:20Oh, here it is! Not ideal.
0:16:20 > 0:16:25It means you've got to run through the communal areas in your towel and shower cap!
0:16:25 > 0:16:29And the bathroom needs a lot of work doing to it as well.
0:16:29 > 0:16:32What's through here?
0:16:32 > 0:16:34Wow!
0:16:34 > 0:16:35Fantastic!
0:16:35 > 0:16:40You know, I didn't expect this. A balcony! It is rather small,
0:16:40 > 0:16:44but any outside space in central London
0:16:44 > 0:16:48is a huge bonus. I'm really pleased about this.
0:16:49 > 0:16:53'I reckon the new owner will be, too. But not with that bathroom.
0:16:53 > 0:16:58'It really does have to go upstairs. I'm sure that with some rejigging
0:16:58 > 0:17:05'they'll be able to squeeze in a shower room. The old bathroom could be used as a utility room.
0:17:09 > 0:17:17'Bearing in mind the flat was guided at 290,000, let's hear what a local estate agent thinks of it.'
0:17:18 > 0:17:22The flat requires complete modernisation. New bathroom, kitchen.
0:17:22 > 0:17:25Just completely redoing.
0:17:25 > 0:17:31'I second that, but once the kitchen is replaced and the bathroom is relocated,
0:17:31 > 0:17:34'how popular would this flat be?'
0:17:34 > 0:17:40This would be very easy to market because it's on the first floor, the best floor of any building.
0:17:40 > 0:17:44And it's a very desirable one-bedroom flat.
0:17:44 > 0:17:49'Let's talk numbers. How much could somebody make here?'
0:17:49 > 0:17:54We would expect to achieve somewhere around £1,200 per calendar month.
0:17:54 > 0:17:58When renovated, we would expect to put this on the market
0:17:58 > 0:18:01for £405,000.
0:18:07 > 0:18:13There is a strong demand for one-bedroom flats in this area and they do achieve high rents,
0:18:13 > 0:18:18but some serious reconfiguring needs to be done before it's ready.
0:18:18 > 0:18:22Once the work's been carried out, this could be a good little earner.
0:18:22 > 0:18:27Somebody else thought so, too, so let's find out who that was.
0:18:30 > 0:18:35Lot 10. First-floor flat. Who wants to start at 250?
0:18:35 > 0:18:38250, with you, sitting down. Anyone else?
0:18:38 > 0:18:41255. 260. 265.
0:18:41 > 0:18:43270.
0:18:43 > 0:18:45275.
0:18:45 > 0:18:48280. 285.
0:18:48 > 0:18:51300? Yeah, 300.
0:18:51 > 0:18:53305.
0:18:53 > 0:18:56305, with you. New spot. 305.
0:18:56 > 0:18:59310. 315. 320.
0:19:01 > 0:19:03325?
0:19:03 > 0:19:06330.
0:19:06 > 0:19:08335. 340?
0:19:08 > 0:19:12It's Pimlico! You don't get this stuff. 340?
0:19:13 > 0:19:17341? 341? It's a yes or a no.
0:19:17 > 0:19:23No? 341 elsewhere? If not, 340 first time. Second time. 341.
0:19:23 > 0:19:26342?
0:19:26 > 0:19:28342, yeah.
0:19:28 > 0:19:30343.
0:19:30 > 0:19:32344?
0:19:32 > 0:19:36343. To you. First time.
0:19:36 > 0:19:41Second time. Third and last time. Have you all done?
0:19:41 > 0:19:43344.
0:19:43 > 0:19:45345? 345?
0:19:46 > 0:19:51344 first time. Second time. Third and last time. All done?
0:19:52 > 0:19:54344. You got there. Well done.
0:19:54 > 0:19:59'That was £54,000 above the guide price
0:19:59 > 0:20:02'and the lady who bought the lot was Lucinda.
0:20:03 > 0:20:09'She runs a design company and I met her at the flat to find out what plans she has
0:20:09 > 0:20:12'for her £344,000 investment.'
0:20:15 > 0:20:19- Lucinda, congratulations.- Thank you. - So what brings you to Pimlico?
0:20:19 > 0:20:24I know the area quite well. I lived here a couple of years ago.
0:20:24 > 0:20:29It's a very good central location and first-floor flats are at a premium.
0:20:29 > 0:20:32When we saw it at auction, it was interesting.
0:20:32 > 0:20:39- Who were you there with? - I was there with my mother. We run our family business together.
0:20:39 > 0:20:43She's the leader. I say, "Whatever you think!"
0:20:43 > 0:20:49We were buying it for our family portfolio, but I also run my own build and design company.
0:20:49 > 0:20:56When the family company make purchases, I then refurbish them to the standard I do client work for.
0:20:56 > 0:21:02What positive signs do you see? When you walk into a property like this, it's a bit down at heel.
0:21:02 > 0:21:06A bit grotty. How can you bring this place back to life?
0:21:06 > 0:21:11It's seeing the potential of what is architecturally special
0:21:11 > 0:21:16and taking it back to where it was before, to make it feel more loved.
0:21:16 > 0:21:21The windows and features are still there. I work on a gut instinct.
0:21:21 > 0:21:25We walked in and we saw it and it can be amazing.
0:21:25 > 0:21:31'The plan is to take the front partition wall down and create an open-plan kitchen area.
0:21:31 > 0:21:35'Lucinda's the right person to see the star potential here.'
0:21:35 > 0:21:39# I'm gonna make you a star
0:21:39 > 0:21:41# Yeah... #
0:21:44 > 0:21:50'The kitchen will become the bedroom and there will be a shower room installed up here.
0:21:50 > 0:21:54'The bathroom will become a utility storage room. It all makes sense
0:21:54 > 0:21:59'and means Lucinda will have a budget of £15,000-£20,000
0:21:59 > 0:22:04'and a realistic timescale of 8-10 weeks for the work.'
0:22:04 > 0:22:08Where did you train to do this? Have you been to fashion college?
0:22:08 > 0:22:15No, no, I've done it through absolute pure love. I worked for an interior design shop for a long time
0:22:15 > 0:22:22and then I started off buying my own flat about four and a half years ago, doing it up, then sold it.
0:22:22 > 0:22:27It's continued from there. In 2007 I sold my last development.
0:22:27 > 0:22:30At that point, it was a good time to step back.
0:22:30 > 0:22:37And I started working for clients. Now we have an industrious company. 25 builders work for me.
0:22:37 > 0:22:40And we keep them working for clients.
0:22:40 > 0:22:46'Lucinda thinks a project like this should be a walk in the park for her and her team.
0:22:46 > 0:22:50'However, this job could throw up one potential problem.'
0:22:50 > 0:22:57We need permission to take that wall down. It's not original. We don't own the freehold,
0:22:57 > 0:23:02so we would have to get permission. And that takes a bit of time.
0:23:02 > 0:23:09It's not difficult to take it down, but it's asking for permission that will be the most frustrating bit.
0:23:09 > 0:23:13It could take us four or five weeks, maybe more, to get that.
0:23:13 > 0:23:19'That can be a minefield, but once negotiated, Lucinda plans to strip everything back
0:23:19 > 0:23:26'to the bone and restore the flat's character, but with a contemporary edge.'
0:23:26 > 0:23:32- What are you most excited about? - Getting the living space opened up again.
0:23:32 > 0:23:37When you see those windows next to each other, you get a feel for it.
0:23:37 > 0:23:43It's got a nice view. It looks down onto another street, rather than right opposite a house.
0:23:43 > 0:23:49- I love this flat and this area. It's going to be an exciting project for you.- Great.
0:23:49 > 0:23:52- Congratulations.- Thank you.
0:23:52 > 0:23:56Lucinda is focused and she knows exactly what she wants from this.
0:23:56 > 0:24:00Obtaining the freehold permission may hold this job up, of course.
0:24:00 > 0:24:07Will she complete it all in just 8-10 weeks? And she thinks it'll be a walk in the park!
0:24:07 > 0:24:11You can join us later in the programme to find out if it's true.
0:24:11 > 0:24:18'Coming up: in Derby, this three-bed house has a garden that could be a mini-farm.'
0:24:18 > 0:24:22There's space for chickens, a vegetable plot, whatever you want.
0:24:23 > 0:24:29'In Pimlico, London, did Lucinda control the design of this one-bedroom flat?'
0:24:29 > 0:24:32I can't resist a few additions!
0:24:34 > 0:24:40'But first, in Congleton, Cheshire, have property-developing brothers Jim and Paul succeeded
0:24:40 > 0:24:44'in building a new house in this hilly garden?
0:24:47 > 0:24:51'In the attractive Cheshire town of Congleton,
0:24:51 > 0:24:58'a pretty rare beast came up for auction - a piece of land with outline planning permission.
0:24:58 > 0:25:04'Originally the garden of the adjoining house, it had scope to build a four-bed detached house.
0:25:04 > 0:25:12'It was snapped up for £177,000 by property developer brothers Jim and Paul.
0:25:12 > 0:25:17'They have a very hands-on approach to the projects they choose.'
0:25:17 > 0:25:21See it from start to finish. James does the design...
0:25:22 > 0:25:28- Well, we both brick it, do everything.- Roof on, all the bits and pieces.
0:25:28 > 0:25:34'Previously, the brothers had worked on the family farm and switched to working on properties
0:25:34 > 0:25:36'14 years ago.
0:25:36 > 0:25:41'The Congleton plot was to be their 20th new build.
0:25:41 > 0:25:47'Well, nearly 18 months later, have they managed to build the house they hoped for?
0:25:48 > 0:25:53'Indeed they have! Where once there was a garage and a garden,
0:25:53 > 0:25:57'now there stands a house, blending beautifully with the area.
0:26:00 > 0:26:07'As Jim is off working on their next development project, it's down to Paul to tell us how this one went.'
0:26:08 > 0:26:13It took nearly a year to get the detailed planning...
0:26:15 > 0:26:19..basically for a four-bedroom, two-and-a-half-storey house,
0:26:19 > 0:26:22three bathrooms, detached garage.
0:26:23 > 0:26:28'It took nearly four months longer for planning permission than hoped
0:26:28 > 0:26:32'and then nearly a year to build after that.
0:26:33 > 0:26:39'But now the house is finished with a large downstairs reception room,
0:26:39 > 0:26:44'a spacious and fully-fitted modern kitchen
0:26:50 > 0:26:56'and the dining area has patio doors that lead out to a sloping garden, which is now looking great
0:26:56 > 0:27:02- 'thanks to a mother's touch.' - The hard landscaping was carried out by my brother and myself,
0:27:02 > 0:27:06but then Mother does all the inspiration of the planting.
0:27:06 > 0:27:14We helped out on Sundays. Just popped along and carried out orders of where to put things.
0:27:14 > 0:27:20'Jim and Paul have made the most of the steep garden and maximised the footprint of the house
0:27:20 > 0:27:22'by building up rather than out.
0:27:29 > 0:27:34'So onto the first floor where there's a master bedroom with en suite.
0:27:36 > 0:27:42'Jim and Paul have been canny. The two other bedrooms on this floor have a shared bathroom,
0:27:42 > 0:27:45'accessed by two separate doors.
0:27:45 > 0:27:49'This is a Jack and Jill bathroom and is a clever use of space.
0:27:51 > 0:27:55'On the top floor, the fourth bedroom is also en suite.
0:27:55 > 0:28:03'Jim and Paul do the majority of the work and it seems they can turn their hands to almost anything.'
0:28:03 > 0:28:07All the groundworks, all the masonry...
0:28:09 > 0:28:11..joinery, roofing,
0:28:11 > 0:28:18finishings... That's apart from plumbing, electrics, decoration.
0:28:18 > 0:28:21But everything else. All-rounders.
0:28:21 > 0:28:24Well, I must say I'm impressed.
0:28:24 > 0:28:30This is not a small house and there was a lot of groundwork needed before they could start to build.
0:28:30 > 0:28:36With the quality of finish Jim and Paul demand, it was never going to be cheap.
0:28:36 > 0:28:42Taking our labour cost in, about the £200,000 mark and we've stayed within budget as well.
0:28:42 > 0:28:45With a £200,000 budget
0:28:45 > 0:28:50and a £177,000 purchase price for the plot, plus costs and fees,
0:28:50 > 0:28:54they'll have invested around £380,000.
0:28:57 > 0:29:01So has their 18 months of hard work paid off?
0:29:01 > 0:29:04What do two local estate agents think of the end result?
0:29:08 > 0:29:11It's a very attractive house in an attractive setting,
0:29:11 > 0:29:15close to the town centre and open countryside.
0:29:15 > 0:29:20The house in terms of family accommodation works extremely well over three floors.
0:29:20 > 0:29:23I'm pleased with the property.
0:29:23 > 0:29:25I'm pleased with the external finish.
0:29:25 > 0:29:29It's very in keeping with the surrounding area.
0:29:29 > 0:29:33It's got a good period look to it, including the slate roof.
0:29:33 > 0:29:35Internally, it's a good finish.
0:29:35 > 0:29:41Everything's done in the right colours and has incorporated good materials
0:29:41 > 0:29:45like real oak flooring, granite work surfaces and limestone tiling.
0:29:45 > 0:29:50Ideally, they'll sell the house, but what kind of rental return could they get
0:29:50 > 0:29:54if they don't sell due to the current tougher market?
0:29:54 > 0:29:58For rental, I would suggest in the region of £1,000 per calendar month.
0:29:58 > 0:30:02I could rent this property for £1,000 per month.
0:30:02 > 0:30:06Fine figure, but we won't let it out. It'll be sold one way or another.
0:30:06 > 0:30:10Selling is the plan, so how much could they get back
0:30:10 > 0:30:14from a house they've invested around 380,000 in?
0:30:14 > 0:30:19I would put the property on the market in the region of £375,000.
0:30:19 > 0:30:22I could put this property on the market for £385,000.
0:30:22 > 0:30:28Not far away from what I was thinking, so I'm not too disappointed.
0:30:28 > 0:30:32Whilst there may not be much or indeed any profit for the brothers,
0:30:32 > 0:30:36they have both taken a salary for over a year from the project,
0:30:36 > 0:30:41but perhaps more importantly, they have a real passion for what they do.
0:30:41 > 0:30:47I'm very happy with the product, so... Yeah, a nice way to make a living.
0:30:47 > 0:30:54With Paul just putting the finishing touches to their 20th house, it's then straight on to the next one.
0:31:01 > 0:31:05This is Chaddesden, a large suburb of Derby,
0:31:05 > 0:31:08known by the locals as Chad.
0:31:08 > 0:31:13It once formed part of the grounds and parkland belonging to Chaddesden Hall,
0:31:13 > 0:31:17but the land was sold to Derby Council over 80 years ago.
0:31:17 > 0:31:23They started building in earnest, so most of the houses round here date from the 1930s to 1960s.
0:31:23 > 0:31:2970% of the properties in Chad are semi-detached, so it's no surprise that is what I'm here to see.
0:31:29 > 0:31:33But right at the side of the property, good news -
0:31:33 > 0:31:38a big bit of land currently used as parking, but I could see an extension or a garage there.
0:31:38 > 0:31:44The property itself had a guide price of £62,000, ex-local authority, three bedrooms...
0:31:44 > 0:31:48I don't know. It looks pretty good. Let's take a look inside.
0:31:48 > 0:31:54Most of the front windows already appear to be double-glazed, so that's another bonus.
0:31:54 > 0:31:56So what have we got?
0:31:56 > 0:31:59Well, through the front door...
0:31:59 > 0:32:05That's a strange place for the staircase. It's like you're coming in at the under-stairs cupboard!
0:32:05 > 0:32:10The first thing I notice - where's the blooming banister? That needs to be sorted out.
0:32:10 > 0:32:14Let's hope it gets better through here. Actually, it does.
0:32:14 > 0:32:17The living room area here, a nice size.
0:32:17 > 0:32:22It's in a bit of a state and needs a bit of refurbishment for sure.
0:32:22 > 0:32:26I'd probably remove the fireplace and put something more modern in.
0:32:26 > 0:32:29You've got a single door out on to the garden.
0:32:29 > 0:32:35This is the easiest conversion you can do - just take out these two pillars, nothing structural.
0:32:35 > 0:32:41Get rid of those, stick a really nice patio door in there. It makes all the difference to this room.
0:32:41 > 0:32:44It's solid, it's big. It gets a big tick.
0:32:44 > 0:32:46Oh, fantastic.
0:32:46 > 0:32:52That might be an odd thing to say when you stumble on a kitchen in a pretty bad state,
0:32:52 > 0:32:56but I've seen straight away that the potential here is huge.
0:32:56 > 0:32:58You've got these silly cupboards.
0:32:58 > 0:33:04And this other cupboard here. Knock all these walls out, create a much nicer kitchen.
0:33:04 > 0:33:10Spend a couple of grand on a decent replacement kitchen. You're going to transform this house. Fantastic!
0:33:10 > 0:33:16# I've got work to do Got so much work, yeah, yeah... #
0:33:16 > 0:33:22Off the kitchen are a couple more storage areas housed in an extension on the side of the property,
0:33:22 > 0:33:26which, with a bit of work, could be turned into a useful utility area.
0:33:26 > 0:33:31Upstairs, the family bathroom needs a complete overhaul
0:33:31 > 0:33:35from new flooring and tiles to an updated suite and shower.
0:33:35 > 0:33:41The three bedrooms, which include two doubles and a single, also need redecoration,
0:33:41 > 0:33:45new flooring and the whole place needs central heating.
0:33:45 > 0:33:50From the main bedroom, you get a good view of perhaps the property's best asset.
0:33:50 > 0:33:53At the rear of the property, a real surprise -
0:33:53 > 0:33:59lots of space to potentially extend both outwards towards the back and also towards the side.
0:33:59 > 0:34:02Your decision there will be - is it worth it?
0:34:02 > 0:34:07If you had a big family, maybe, but properties in this area will have a ceiling price,
0:34:07 > 0:34:11so make sure you don't overspend on that extension.
0:34:11 > 0:34:15The other big surprise is the garden is absolutely fantastic.
0:34:15 > 0:34:19I mean, space for chickens, a vegetable plot or whatever you want.
0:34:19 > 0:34:22If you're living here, that is a bonus.
0:34:22 > 0:34:28But if you're thinking about renting this place out, tenants in my experience don't look after gardens,
0:34:28 > 0:34:31so you've got yourself a bit of a question.
0:34:31 > 0:34:34In fact, a bit of a thorny question.
0:34:36 > 0:34:42Basically, will such a large garden prove a benefit or a potential maintenance nightmare?
0:34:42 > 0:34:47The auction guide price for this property was 62,000,
0:34:47 > 0:34:51so what does the auctioneer who sold it think of it
0:34:51 > 0:34:53and what it has to offer?
0:34:53 > 0:34:57Essentially, the whole house wants bringing in to the 21st century.
0:34:57 > 0:35:00It needs a refit kitchen, bathroom.
0:35:00 > 0:35:04It possibly needs wiring. It needs heating looking at, its decoration.
0:35:04 > 0:35:07It's really the whole raft of work.
0:35:07 > 0:35:12Extending is a tempting option, but would it be worth it?
0:35:12 > 0:35:16One of the benefits of this house is it enjoys a large garden,
0:35:16 > 0:35:21so there's ample opportunity for extensions - sideways, backwards, whatever.
0:35:21 > 0:35:27However, I would say one needs to be careful how far you take this because it will have a ceiling value.
0:35:27 > 0:35:31You could make it into a four-bedroomed house with extensions.
0:35:31 > 0:35:35You could put conservatories on. The plot will stand it.
0:35:35 > 0:35:38The values in the area probably won't.
0:35:38 > 0:35:44If the new owners go down the rental route, how much might they expect to make from this property?
0:35:44 > 0:35:47If this was renovated and on the rental market,
0:35:47 > 0:35:52I would expect it to achieve probably around £525 a calendar month.
0:35:52 > 0:35:55What could the re-sale value be?
0:35:55 > 0:36:01Once renovated, it would have a value of towards £100,000. It certainly wouldn't be above that.
0:36:01 > 0:36:06I suppose on today's market, 95,000 to 98,000, that sort of window.
0:36:06 > 0:36:10Well, what you've got here is a real solid little semi.
0:36:10 > 0:36:16It needs updating and I'm not sure you'd get your money back if you did an extension.
0:36:16 > 0:36:19Let's see who fancied it when it went under the hammer.
0:36:23 > 0:36:27A three-bedroomed, semi-detached house
0:36:27 > 0:36:29on an extremely large plot.
0:36:29 > 0:36:3358 to start me? 58? 58,000, thank you.
0:36:33 > 0:36:3559 seated. 59.
0:36:35 > 0:36:3760? 60,000.
0:36:37 > 0:36:3961. 61.
0:36:39 > 0:36:4162. 62.
0:36:41 > 0:36:4363? 63 is bid.
0:36:43 > 0:36:45At 63. 64?
0:36:45 > 0:36:4764. 65?
0:36:47 > 0:36:4965. 65.
0:36:49 > 0:36:5166?
0:36:51 > 0:36:55At £65,000. I'll take 500 quickly from somebody.
0:36:55 > 0:36:58At 65,500. 65-5.
0:36:58 > 0:37:0066, sir? 66.
0:37:00 > 0:37:03500? 66-5.
0:37:03 > 0:37:0567.
0:37:05 > 0:37:07500.
0:37:07 > 0:37:0968...?
0:37:09 > 0:37:1168. 69?
0:37:11 > 0:37:1369-5.
0:37:13 > 0:37:1570,000.
0:37:15 > 0:37:1870 and a half. 71.
0:37:18 > 0:37:2071 and a half. 72.
0:37:20 > 0:37:2272 and a half.
0:37:22 > 0:37:2473? 73.
0:37:24 > 0:37:2673 and a half.
0:37:26 > 0:37:2874.
0:37:28 > 0:37:3174-5.
0:37:31 > 0:37:3375,000...? 75.
0:37:33 > 0:37:34500.
0:37:34 > 0:37:3676? 76.
0:37:36 > 0:37:3976-5? 500.
0:37:39 > 0:37:4277. 77,500.
0:37:42 > 0:37:4378.
0:37:43 > 0:37:46500...? 78,500.
0:37:46 > 0:37:48Once... Twice.
0:37:48 > 0:37:51Third time... He's bought it.
0:37:51 > 0:37:5378,500.
0:37:54 > 0:38:00'That successful final bid of £78,500 came from Fred.
0:38:00 > 0:38:04'After being made redundant from his job as a quantity surveyor,
0:38:04 > 0:38:07'he decided to try his hand at property developing.
0:38:07 > 0:38:13'I met Fred and his wife Rachel back at the house to discover why they picked this one.'
0:38:13 > 0:38:18- Rachel, Fred, lovely to meet you both. Congratulations.- Thank you.
0:38:18 > 0:38:21Tell me why you wanted to buy this place.
0:38:21 > 0:38:27- Obviously, we've got some spare cash. I'm no longer working. I was made redundant last year.- Right.
0:38:27 > 0:38:33And Rachel's got a property that she currently rents out, so it was my turn to buy one and rent one out,
0:38:33 > 0:38:36which is the intention with this.
0:38:36 > 0:38:41- You're the experienced one of the two?- I don't think so. One tries.
0:38:41 > 0:38:47- What one have you got at the moment? - It was my house before Fred and I got married. I've rented that out.
0:38:47 > 0:38:53- You kept it rather than selling it? - Yes.- But what spurred this purchase was you got made redundant.- Yeah.
0:38:53 > 0:38:57I applied for 20 or 30 jobs, nothing going. QS, so I know the building...
0:38:57 > 0:39:01- What's QS?- Quantity surveyor. So I know the building trade.
0:39:01 > 0:39:06We got some cash and rather than putting it in the bank and getting nothing out of it,
0:39:06 > 0:39:08- we decided to buy a property.- Right.
0:39:08 > 0:39:11And obviously let it.
0:39:11 > 0:39:17Quantity surveyor, that would be an ideal lot of experience to have to undertake what you're going to do.
0:39:17 > 0:39:20Yeah, I know probably what I've got myself into.
0:39:20 > 0:39:24# Take a deep breath, pick yourself up
0:39:24 > 0:39:26# And start all over again... #
0:39:26 > 0:39:30'This isn't Fred's first attempt to buy a property at auction.
0:39:30 > 0:39:34'He previously attempted two proxy bids, but those weren't successful.
0:39:34 > 0:39:38'However, thankfully, his persistence finally paid off.'
0:39:38 > 0:39:41So why this house in particular?
0:39:41 > 0:39:43It's local authority, well built.
0:39:43 > 0:39:47Obviously, it wants updating, but at least it isn't falling down.
0:39:47 > 0:39:53The walls are OK, the roofs are OK. Again, it's central heating, kitchen, bathroom, the usual.
0:39:53 > 0:40:00- What was it you liked about it, Rachel?- I came to see it first and didn't actually get to the auction.
0:40:00 > 0:40:03But yeah, there's a lot of potential here.
0:40:03 > 0:40:09- That's a bit of a long story. She had gone in for a knee operation.- Right.
0:40:09 > 0:40:12We'd looked at four at this particular auction.
0:40:12 > 0:40:16It was a case of, "See you in the morning in the hospital, dear."
0:40:16 > 0:40:20I went out, bought a house, came back and said, "We've got a house."
0:40:20 > 0:40:25- You got a new house and a new knee!- Yeah.- Fantastic. - Can't leave him for a minute.
0:40:25 > 0:40:29'Rachel will leave Fred to do the bulk of the work
0:40:29 > 0:40:33'with contractors brought in to do the gas, plumbing and electrics.
0:40:33 > 0:40:39'When she's a bit stronger, she will deal with the decorating and that overgrown garden.'
0:40:40 > 0:40:42# I beg your pardon
0:40:43 > 0:40:47# I never promised you a rose garden... #
0:40:47 > 0:40:52'But they shouldn't have a problem keeping tabs on their prospective tenant.'
0:40:52 > 0:40:55- He's my son.- Oh, right.
0:40:55 > 0:41:01- So he's lucky. He's met a nice, young lady with two children. - Fantastic.- And it's just ideal.
0:41:01 > 0:41:05- Will he pay you the market rent? - We'll give him a slight discount.
0:41:05 > 0:41:08But he pays on time or he's out.
0:41:08 > 0:41:11So he knows that.
0:41:11 > 0:41:13Yeah, it should be good.
0:41:13 > 0:41:19We're winners all round. We get him out of our house and we get him into a house of ours and paying rent.
0:41:19 > 0:41:24- It's turned out perfect. What budget have you got for the work? - Between 10,000 and 12,000.
0:41:24 > 0:41:29- And timescale?- About the same, between 10 and 12 weeks.- OK, great.
0:41:29 > 0:41:36- Then think about re-financing and moving on to the next one.- Is that the plan?- That's a possibility.
0:41:36 > 0:41:42- Congratulations. We look forward to seeing how you get on and I hope your knee gets better.- Thank you.
0:41:42 > 0:41:46Well, it's good to see that after the trauma of redundancy,
0:41:46 > 0:41:52Fred has picked himself up and he and Rachel are embarking on a property development career.
0:41:52 > 0:41:56A great property to start off with. They can do good things here.
0:41:56 > 0:42:01And to cap it all, it's also providing a home for their son.
0:42:01 > 0:42:03Find out how they get on later.
0:42:06 > 0:42:08The moment of reckoning has arrived.
0:42:08 > 0:42:15- So has the gamble of our property buyers paid off or have they backed the wrong horse?- Let's find out.
0:42:17 > 0:42:20Back now to Pimlico, south-west London,
0:42:20 > 0:42:25where earlier, this one-bed flat sold at auction for 344,000.
0:42:26 > 0:42:31Lucinda bought it for her family's property rental business,
0:42:31 > 0:42:35but a lot of work had to be done to make it attractive.
0:42:35 > 0:42:40Fortunately, Lucinda had a good idea of how to do that.
0:42:40 > 0:42:46Make it feel a bit more loved. The windows and the features are very much still there.
0:42:46 > 0:42:51I very much work on a gut instinct. We walked in and saw it and thought it could be amazing.
0:42:51 > 0:42:57But to be amazing, it would have to include bringing the bathroom from its current location
0:42:57 > 0:43:02out on to the communal landing. No easy task considering the space up here.
0:43:02 > 0:43:06The plan was for an eight to ten-week turnaround,
0:43:06 > 0:43:12but it was nine months later when we returned to see the final transformation.
0:43:20 > 0:43:26With the partition wall gone, Lucinda created a spacious, open-plan kitchen,
0:43:26 > 0:43:31taking advantage of those huge, beautifully restored sash windows.
0:43:33 > 0:43:39At the back, the former kitchen has now become a compact double bedroom,
0:43:39 > 0:43:41decorated in neutral colours.
0:43:41 > 0:43:44Let's hear from Lucinda about the changes here.
0:43:46 > 0:43:52So this is the original doorway into the flat, and then this is the new doorway that we created.
0:43:52 > 0:43:56When you come through the doorway, there's a small entrance hall
0:43:56 > 0:43:59with three doors off it - one into the bedroom,
0:43:59 > 0:44:05one into the new shower room and one into the kitchen and sitting room that had a partition wall between it.
0:44:05 > 0:44:10Lucinda has made this space work by niftily relocating the front door
0:44:10 > 0:44:16from the side of the landing to the front and running a new entrance hall through the old bedroom.
0:44:19 > 0:44:23Just stealing some space from the living room and bedroom
0:44:23 > 0:44:27has helped create a stylish new shower room.
0:44:28 > 0:44:31It's 100% more practical now.
0:44:33 > 0:44:35And back on the landing.
0:44:35 > 0:44:40So this was the old bathroom that was separate from the flat
0:44:40 > 0:44:44and now we've turned it into a utility/study area.
0:44:44 > 0:44:49The washing machine can go under there, the boiler's in that cupboard
0:44:49 > 0:44:52and there's a small desk you could use to work from.
0:44:52 > 0:44:57Then out here was the original roof terrace. We've put some pebbles down.
0:44:57 > 0:45:01In the summer, you could put a table or some pots and plants outside.
0:45:04 > 0:45:08Back inside, from top to bottom, wall to wall,
0:45:08 > 0:45:12everything has been rebuilt, rewired and re-plumbed.
0:45:12 > 0:45:16New solid wood flooring gives a warm feeling throughout.
0:45:16 > 0:45:23Lucinda now has a stylish new flat for her portfolio with no expense spared on the finish.
0:45:23 > 0:45:29I think it's very important in terms of look, if you're renting a flat out, to keep it quite neutral,
0:45:29 > 0:45:35but the rents are quite expensive round here, so people expect something a little bit different
0:45:35 > 0:45:38and I can't resist putting a few additions in,
0:45:38 > 0:45:44but equally, it's not where I'm living, so it's important that you keep it very blank canvas,
0:45:44 > 0:45:47that people can have their own touches on it.
0:45:47 > 0:45:49The bedroom is the most neutral here,
0:45:49 > 0:45:53but the rest of the flat more than makes up for it.
0:45:56 > 0:46:02Although the renovation didn't cause any problems, it did take time to kick-start the project.
0:46:02 > 0:46:08To do all the changes, because it's a leasehold flat, we have to write to the freeholder
0:46:08 > 0:46:11and ask to be granted what's called a licence to alter.
0:46:11 > 0:46:15That did take some time as you've got to submit the plans,
0:46:15 > 0:46:19it goes backwards and forwards and you're dealing with various people,
0:46:19 > 0:46:23but we got that eventually and they were quite accommodating.
0:46:23 > 0:46:29It just took a bit longer than we might have liked, but these things happen.
0:46:29 > 0:46:34As well as a licence for alteration, Lucinda also had to get planning permission for the changes,
0:46:34 > 0:46:38then the work had to be checked to comply with building regulations.
0:46:38 > 0:46:44This is all time-consuming, which explains why it took nine months to complete this project.
0:46:45 > 0:46:50The guys have probably not always been here as much as they should
0:46:50 > 0:46:54cos we've had to move them around if we have other maintenance callouts
0:46:54 > 0:46:59or if a flat becomes vacant and we want to get a new tenant in there, they go and redecorate,
0:46:59 > 0:47:03but labour-wise, it's only taken three months, which I'm pleased with
0:47:03 > 0:47:09because when we decided to play around with the layout, it took a bit more work than we anticipated.
0:47:09 > 0:47:13But with such a long overrun, the budget only stretched
0:47:13 > 0:47:18from the original £15,000 to £20,000 up to £23,000.
0:47:18 > 0:47:23£1,000 of that was for the licence for alterations needed to re-jig the layout here.
0:47:23 > 0:47:28That takes Lucinda's total outlay to 367,000.
0:47:28 > 0:47:30So will this flat recoup that?
0:47:38 > 0:47:43To find out, we asked two local estate agents what they thought of the renovation.
0:47:43 > 0:47:49My first impression when I came through the door was this is a very contemporary apartment.
0:47:49 > 0:47:52It's obviously been very well planned.
0:47:52 > 0:47:55The owner has given considerable thought
0:47:55 > 0:47:58to the way it all works and comes together.
0:47:58 > 0:48:02The property is in exceptional condition. It's light, spacious
0:48:02 > 0:48:06and it retains the character of a period conversion.
0:48:07 > 0:48:10The fact that we've also got a separate study
0:48:10 > 0:48:15or utility leading to a terrace at the back is really wonderful.
0:48:15 > 0:48:17Buyers are going to love that.
0:48:19 > 0:48:23With Pimlico being a very desirable area, how do the figures stack up?
0:48:23 > 0:48:28Remember, Lucinda's total spend on the flat is £367,000,
0:48:28 > 0:48:31so what could a re-sale achieve?
0:48:32 > 0:48:37I think a suitable re-sale value for this property would be £395,000.
0:48:37 > 0:48:40I would say the re-sale value is £400,000.
0:48:40 > 0:48:45That's where we thought we would come in, so we'd aim to put it on the market at 400 to 410
0:48:45 > 0:48:49with a view to taking 395 to 400, so we're pleased with that.
0:48:49 > 0:48:56That could give Lucinda a possible pre-tax profit of between 28,000 and 33,000,
0:48:56 > 0:49:01but the aim is long-term for the flat, so how do the rental figures stack up?
0:49:01 > 0:49:08I think a suitable rental value for this property would be £1,625 per calendar month.
0:49:08 > 0:49:12The rental value per calendar month would be £1,750.
0:49:12 > 0:49:18Both those returns would give Lucinda an annual rental yield of between 5 and 6%.
0:49:18 > 0:49:22So which is it to be? Re-sale or rental?
0:49:22 > 0:49:28We're definitely going to hold on to it for a bit and rent it out and see where we are in a few years.
0:49:29 > 0:49:35With such an obvious passion for property and design, what does the future hold for Lucinda?
0:49:35 > 0:49:41Keep working in property. I love working for my clients, doing design work and building work for them.
0:49:41 > 0:49:48I love working with my family and our family business, so keep on going with those and see what's next.
0:49:51 > 0:49:54We return now to Chaddesden, Derby,
0:49:54 > 0:49:59where this semi-detached sold at auction for £78,500.
0:49:59 > 0:50:04Fred and Rachel hoped this would be the start of a new chapter in their lives
0:50:04 > 0:50:08after quantity surveyor Fred was made redundant.
0:50:08 > 0:50:14We got some cash and rather than putting it in the bank and getting nothing out of it,
0:50:14 > 0:50:17- we decided to buy a property.- Right.
0:50:17 > 0:50:19And obviously let it.
0:50:19 > 0:50:26So, a quantity surveyor, that would be an ideal lot of experience to undertake what you're going to do.
0:50:26 > 0:50:29I know probably what I've got myself into.
0:50:29 > 0:50:32# Time for a change... #
0:50:32 > 0:50:37Well, did they manage to remain so upbeat throughout this renovation?
0:50:37 > 0:50:40We're back three months later to see how they got on.
0:50:40 > 0:50:45I think it's fair to say this place is looking completely different.
0:50:48 > 0:50:54Fred and Rachel have freshened up the living room with neutral colours and a lovely set of patio doors.
0:50:54 > 0:50:59Everything in the kitchen needed to be addressed and it certainly has been.
0:50:59 > 0:51:04A new fitted kitchen has been installed with just some tiling to do.
0:51:04 > 0:51:08The storage area to the side of the kitchen has been spruced up,
0:51:08 > 0:51:11ready for use as a great-sized pantry.
0:51:11 > 0:51:13The kitchen is completely different.
0:51:13 > 0:51:17Round about here, we had an outside...downstairs toilet
0:51:17 > 0:51:21and then there was another little room here.
0:51:21 > 0:51:26We decided that we'd like to open it up to make the kitchen a good-sized space.
0:51:26 > 0:51:32And then in the other room, we've made a utility and it all flows through.
0:51:32 > 0:51:38Upstairs, the landing has really benefited from a new carpet and a neutral paint job.
0:51:38 > 0:51:42All three of the bedrooms look cleaner and fresher
0:51:42 > 0:51:45with a lick of paint and new carpeting.
0:51:49 > 0:51:55The bathroom needed some serious TLC and although they're not quite finished yet,
0:51:55 > 0:51:58this room in particular took a lot of effort.
0:51:58 > 0:52:03When we started to strip it out, the floorboards were rotten
0:52:03 > 0:52:06and obviously got to be completely replaced,
0:52:06 > 0:52:12so we treated most of the joists, replaced a couple of them and replaced the floorboarding
0:52:12 > 0:52:15before we could even start refurbishing the bathroom.
0:52:15 > 0:52:19The garden was overgrown and in need of a major clear-out.
0:52:19 > 0:52:25Although there is landscaping still to do, all those sheds have been pulled down
0:52:25 > 0:52:27which gives a more spacious feel.
0:52:27 > 0:52:33When we first came and saw how big the garden was, there was aviaries and sheds,
0:52:33 > 0:52:37we thought, "This is going to take quite a long time."
0:52:37 > 0:52:40And we decided that we would have a bonfire party.
0:52:40 > 0:52:43We invited friends and family to come up.
0:52:43 > 0:52:47And they thought they were coming for food and drink
0:52:47 > 0:52:51and we ended up knocking all the sheds down.
0:52:51 > 0:52:58After we'd done that, we realised that the garden went on at least another five or six foot.
0:52:58 > 0:53:04At least Fred and Rachel managed to make a really hard task an enjoyable social occasion,
0:53:04 > 0:53:07but the renovation hasn't always been fun.
0:53:07 > 0:53:11When we fetched up the carpet, there was another carpet underneath,
0:53:11 > 0:53:17then there was lino and then there was a line of nails, then there was another line of nails.
0:53:17 > 0:53:21It was literally in every bedroom, down in the living room.
0:53:21 > 0:53:26The stairs were dreadful. It was nail after nail after staple,
0:53:26 > 0:53:29so yeah, I did get a little bit fed up of those.
0:53:29 > 0:53:35It took us the best part of nearly three weeks to strip out what was actually here.
0:53:35 > 0:53:41Yeah, that was a bit of a shocker. It was worse than we anticipated, but we're nearly there.
0:53:42 > 0:53:47Rachel and Fred originally allocated 10 to 12 weeks to do all the work
0:53:47 > 0:53:53and didn't manage to start straight away, but when they eventually got stuck in,
0:53:53 > 0:53:58it took eight weeks of hard graft to get the house into its current state.
0:53:58 > 0:54:02We literally worked seven days a week, some days up to 12 hours,
0:54:02 > 0:54:06so over a period of about eight weeks, I didn't have a day off.
0:54:06 > 0:54:12- I've had three or four days off. - I got fed up of you and told you to have one or two days off.
0:54:12 > 0:54:14- So I did.- So she did.
0:54:14 > 0:54:20Fred estimated that their budget for the renovation was 10,000 to 12,000,
0:54:20 > 0:54:25so with some finishing and tiling still to do, how much have they spent?
0:54:25 > 0:54:30At the end of the day, we've probably spent around 13,500.
0:54:30 > 0:54:37The bathroom floor had to be replaced which was an unknown. All the walls have had to be re-plastered.
0:54:37 > 0:54:43And some of the original plastic windows that we've retained did need a certain amount of refurbishment,
0:54:43 > 0:54:45so we'll go from 12 to 13 and a half.
0:54:45 > 0:54:51I think we got away...not light, but not too bad, to be honest.
0:54:51 > 0:54:55They paid £78,500 at auction
0:54:55 > 0:54:59and spent a further £13,500 on it,
0:54:59 > 0:55:02making a total of £92,000 spent so far,
0:55:02 > 0:55:05so have they added much value here?
0:55:05 > 0:55:09We asked two local property experts for their thoughts.
0:55:09 > 0:55:12Second time in, total transformation,
0:55:12 > 0:55:15but anything was better than what you had before.
0:55:15 > 0:55:20It's looking very good, clean, tidy, refitted and what you'd expect.
0:55:20 > 0:55:22First impressions are good.
0:55:22 > 0:55:26The owners have spent a lot of time and effort in improving the property
0:55:26 > 0:55:30and making it nice and neutral for somebody to move into.
0:55:30 > 0:55:33How much could this fetch on the rental market?
0:55:33 > 0:55:38The rental value of the property is about £500 a calendar month.
0:55:38 > 0:55:43The rental valuation on the property would be £495 per calendar month.
0:55:43 > 0:55:45Yes, we're happy with that.
0:55:45 > 0:55:50We've got it let at 500, so they're right on the button with that. Really pleased.
0:55:50 > 0:55:55By keeping it in the family, as their tenant is Rachel's son,
0:55:55 > 0:55:58they can keep a close eye on their investment.
0:55:58 > 0:56:00But should they ever decide to sell,
0:56:00 > 0:56:06the estate agents reckon a re-sale could fetch between £110,000 and £120,000.
0:56:06 > 0:56:11That would mean a possible pre-tax profit of between 18,000 and 28,000 quid.
0:56:11 > 0:56:15Pleasantly surprised with that. We thought round about the 110.
0:56:15 > 0:56:19But there again, we didn't buy it to make a gain immediately.
0:56:19 > 0:56:25We bought it to rent out, so the signs are good there. I'm really pleased with that.
0:56:25 > 0:56:28Now that the end's in sight for the renovation,
0:56:28 > 0:56:32are Fred and Rachel planning another visit to an auction?
0:56:32 > 0:56:35We'd do it again. At times, it's been humorous.
0:56:35 > 0:56:38At times, it's been disappointing.
0:56:38 > 0:56:44But generally, the experience has been very good and the rewards... Yeah, very positive.
0:56:44 > 0:56:48- And the fact that we work together. - Yeah.- Very well.
0:56:52 > 0:56:57Whether you're an old hand at property developing or a novice, join us next time
0:56:57 > 0:57:02- for more stories from the auctions. - We'll see you soon for more Homes Under The Hammer.- Bye.- Bye.
0:57:19 > 0:57:23Subtitles by Subtext for Red Bee Media Ltd 2011
0:57:23 > 0:57:26Email subtitling@bbc.co.uk