Episode 38 Homes Under the Hammer


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Episode 38

Martin Roberts and Lucy Alexander visit a cottage in Devon, a converted terraced property in London and a house in Leeds.


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Transcript


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Welcome to the programme.

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Despite the doom and gloom in the property market,

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buying at auction is still a very good thing to do.

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It's important to be cautious and, of course, do your research.

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But if you do that, you could find yourself a bargain.

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Well, if you are looking for variety and good value,

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then buying under the hammer may be for you.

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So here's what lured our buyers to the auction rooms on today's show.

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The interior of this Devon cottage

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is more Swedish sauna than rural retreat.

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I've never come across a kitchen/sauna before.

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This terrace in London has been converted into two teeny-tiny flats.

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In my opinion, this has got to be one house.

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And I'll be exploring this house in Leeds, IF I can get in, that is.

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A couple of minutes with a hedge trimmer will sort that out.

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All these properties have been sold at auction.

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We'll find out who bought them and what they paid

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when they went under the hammer.

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Sold.

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I'm in Roborough, a little village

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between Plymouth and Dartmoor National Park.

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You've got a pub, a few shops.

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But what attracts people here more than anything else

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is easy access to some quite simply stunning countryside.

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Well, the property I'm here to see

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is in one of the more desirable parts of the village.

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Mid-terrace, had a guide price of £115,000, two bedrooms.

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Let's see if it's desirable inside.

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Roborough has seen some housing development recently,

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but this row of cottages does give a taste of old village life.

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And this 19th-century cottage does have some kerb appeal.

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It will take a little bit of tidying up.

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That's interesting. One room that way,

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one room that way, stairs in the middle.

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Fairly traditional layout, I suppose.

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It could even have been two cottages knocked through to one.

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Let's come this way.

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I like the fact you've got this window seat

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and I bet if you stripped that back

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you'd find beautiful pitch pine under there.

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Not so sure about the old fireplace.

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That sort of lets the place down.

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But it's a reasonable-sized room. Ceilings could do with more head height,

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but I suppose it is a cottage.

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What's through there?

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Kitchen. We'll explore that in a minute.

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The other room on the other side.

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A mirror image of what's on that side again. The window seat.

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Panelling, strip it back, it could be beautiful.

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But beware, sometimes, behind there, you do get damp

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and it can turn into dry rot.

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So definitely check that out.

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Then, back towards the front door to where we started.

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Good start, really.

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There are signs of wear and tear

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but I reckon once you start stripping it back to its bare bones,

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there's the opportunity to create something really special here.

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So, to the rear of the property, down a few steps

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and into basically a kitchen and more.

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I'll come to that in a second.

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This is a kitchen bit.

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You could have fun with these units, basically throw them away,

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replace them with something more in keeping with this place.

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Not a bad-sized space, I have to say.

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Lots of light coming in through the roof light.

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Not good though -

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here is your bathroom and loo. Off the kitchen,

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just one door between the two,

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not ideal at all.

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I've seen that kind of stuff before.

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Then it gets really weird over this way.

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This low kind of like beam going across here.

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You step into what is basically a little anteroom for the kitchen,

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I suppose it's a dining room,

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but decked out in all this pine cladding,

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meaning it's more like a sauna

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and I've never come across a kitchen/sauna before.

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# Steamy windows... #

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For lots of reasons, I think this could be a pretty hot property! But if you can't stand the heat,

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get out of that kitchen and you will find a good-sized garden out back.

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If you put in French windows,

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they would really open up the rear of the house to this outside space.

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Upstairs are two double bedrooms, both in need of renovation.

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But they are representative of this house.

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It's got bundles of character and plenty of possibilities.

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The guide price was £115,000.

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We asked a local estate agent to give us the low-down

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on this two-bed cottage.

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The property was originally owned,

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we understand, by Maristow Estate,

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which is a large estate a couple of miles down the road

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and originally built for the farm workers of that estate

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and have been obviously handed down over the years.

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This is a good property, it's a sound property.

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The vendors have put in some good modernisation,

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believe it or not, looking around,

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but they've got double glazing,

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a relatively new gas central-heating system.

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So with that £115,000 guide price, how would you make the most of it?

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I think the kitchen here,

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you would need to knock this wall out and open it up

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to make a nice kitchen-diner or a family room, bearing in mind

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it backs out on to the garden.

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It's a lovely aspect of the property.

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What sort of return can the buyer expect on this place?

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Once this property's renovated,

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I feel it would be worth in the region of £160,000 to £165,000.

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Rental for this property once refurbished

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would be between £600 and £650 per calendar month.

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Well, this is a great little auction purchase.

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Enough space to play around with inside, yes,

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some internal modifications and updating required.

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But there's money to be made.

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Let's see who spotted it at the auction.

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Lot number 30. We have a guide price of £115,000.

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Anybody going to start me off with £100,000 then?

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£90,000 then.

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£90,000 I have, thank you. £90,000.

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Bid for £95,000? 95, thank you, sir.

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97 somewhere. 97 at the back.

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99 somewhere. £99,000.

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£99,000 in the doorway.

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£100,000. I have £100,000.

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There's a lot of interest,

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but progress is rather slow.

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So we rejoin it later at £123,000.

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123, thank you.

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Looking for 124? 124.

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125 somewhere?

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We have 124 on my right down here.

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Looking for 125.

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125, thank you.

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126. 126? Pause it a moment.

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125-and-a-half then?

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125-and-a-half I have. 125-and-a-half I have. 126?

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OK, so we are out at 125-and-a-half on my right here.

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Looking for 126?

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Then we have, I'm afraid, to pass that one by, I'm sorry. Very close, very close.

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Despite all that bidding, the property failed to meet its reserve price.

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But, after some behind-the-scenes negotiation

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it was finally sold for £128,000.

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The new owners who were bidding on the day are Ian and Tina.

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Ian's a carpenter by trade,

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whilst Tina runs their management consultancy business.

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They're also building up a small property portfolio.

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Tina, Ian, lovely to meet you both.

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-You too.

-Congratulations.

-Thank you.

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Why did you want to buy it?

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We like doing up properties.

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We do about one a year and we usually rent them out,

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certainly in this current market, that's what we've been doing.

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So this was our one for this year.

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This will be the couple's third property in the West Country

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but their fifth in total.

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They're from West Sussex where they bought property for investment,

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but after selling their portfolio, they moved to Devon to escape the rat race.

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And what a place to do it.

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So, Tina, why this particular property?

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-Well, we live on the Moors about five miles that way.

-Oh, lovely.

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And Roborough is known to be a really nice little village.

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It's got a real village feel,

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but you're a few minutes from Plymouth city.

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So it's a great rental location.

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We've got Derriford Hospital down the road,

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so you've got nurses and doctors visiting the area

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and looking for short-term lets.

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So, we tend to look for nice location,

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-we like the older property as well.

-Yes.

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We like putting the original features back in

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and really trying to bring a contemporary edge.

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-But we like the original properties.

-Kick some fresh life into them.

-Yeah.

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I reckon they have quite a renovation project on their hands.

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The temptation with a rental property is to concentrate on the finances,

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but with their aim to restore the original features,

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it's clear that these two really care about the places they take on.

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Tell me what you are going to do to sort it out?

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We'll start top-to-bottom,

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completely refurbish right the way throughout, inside and out.

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We'll rewire, we'll move plumbing wherever required.

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The ceilings will probably need to come down,

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so they'll be renewed,

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remodel the bathroom,

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we'd like to try and squeeze an en suite in upstairs

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just so there is an upstairs facility.

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What will you do with the kitchen? It's a bit weird.

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It is, yes.

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It's a bit of a walk-through,

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so we may well section a small part of the kitchen off

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to provide for a utility area

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and separate the bathroom from the kitchen a little further,

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and then we'll move the kitchen all towards one end

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and so leaving us with a kitchen-breakfast area.

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-Are you planning to take out the beam that goes across?

-Yes.

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-Yes, and the wood panelling throughout.

-Yes, that will go.

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As it will everywhere else in the house.

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Their budget is £10,000,

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and to do all the work they propose, that might seem a bit tight.

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But Ian's got a small contingency fund just in case

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and Tina's career as a management consultant to the retail industry should also prove handy

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when it comes to bargaining over new kitchen units and a bathroom suite.

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So, what kind of timescale?

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If you are asking Tina about eight weeks,

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I reckon more like 12 is a realistic time frame

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and then it depends what else we uncover

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as to whether that would need to be extended.

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But if we could have it let or ready for letting after three months...

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-Yes, three to four months, it should be rented out.

-Then we'll be happy.

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Great. Congratulations to you.

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-Thank you very much.

-We look forward to seeing how you get on.

-Thank you.

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Well, I have to say, I'm really excited

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to see how Tina and Ian get on with this place.

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I think they're really going to transform it.

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The big question is, will it take eight weeks, 12 weeks or longer?

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You can find out later in the show.

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Today, I'm taking a trip to a peaceful little enclave

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amidst the hustle and bustle of southwest London.

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Wandsworth was, for hundreds of years, a busy industrial area

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and this road would have been your everyday high street,

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providing for the working-class locals.

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Today, this part of SW18, known as The Tonsleys,

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is stacked with countless cafes, delis and beautiful boutiques

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and it's something of a hidden gem,

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a perfectly-preserved Victorian village

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nestled inside the bustling city.

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How wonderful!

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And, as you can imagine, highly desirable.

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# You're so desirable

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# I can't resist you... #

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Properties in this quiet corner command a high price.

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A modest Victorian terrace here can expect to sell for over £600,000.

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On this stunning street,

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it's hard to imagine that in ten minutes you can be in Waterloo

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and trendy Clapham is literally just around the corner.

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Here, you're cocooned in a more traditional world for the families

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and those looking to hide from the city at the end of the day.

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There are only around 600 houses in The Tonsleys area

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and, as with anything that's rare and in-demand,

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they all come with hefty price tags.

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Now, the property I'm here to see, well, it's here,

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it's currently laid out as two flats

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and it had a guide price of £395,000.

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What was once a working-class Victorian terrace is now in high demand

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from the professional couples and families who populate this area.

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Time to check out the first of two self-contained flats, starting with the ground floor.

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You know, I'm not really convinced that these workers' cottages

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should be split up.

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The proportions aren't there. And they're not big enough,

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although you have got quite a nice-size lounge, saying that.

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A bedroom here. But you can see, it's narrow, you've got small little cupboards,

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not enough room in there for a downstairs toilet under the stairs.

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Rather strangely, at the back,

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you've got a bathroom, sort of shoved in there,

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a weird sort of partition wall with some windows

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and the smallest kitchen I think I've ever seen.

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Look at this, look, I can touch both walls.

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You know, this property looks really nice from the outside,

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I'm just not loving it on the inside.

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# Bring back that lovin' feelin' Now it's gone

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# Gone, gone... #

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The tatty toilet and the titchy kitchen are far from ideal.

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This property doesn't need TLC,

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it needs some tough love to bring back that loving feeling.

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The ground-floor flat does have access to this overgrown garden,

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where there's potential to extend out into the side return.

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Let's take a look at the upstairs apartment.

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So this is flat number two. Now, it feels a little bit bigger up here.

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You've got a bathroom there, which by the way, is massive.

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a little kitchen area here

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and this rather large room to the front of the property.

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Now, would you call this the bedroom or the lounge?

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All you have this room here, an old gas fire there,

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some beautiful original sash windows which I love.

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You know what, I'm just thinking,

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is it worth spending the money trying to make these two flats work?

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I don't think so.

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In my opinion, this has got to be one house.

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It will then fit in with the rest of the street and it will be fantastic.

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# When 2 become 1... #

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Normally, I would say two properties are better than one, but in this case, this conversion

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is crying out to be returned to the house it was originally.

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And that is also what the local property market really wants.

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Families in London are often desperate for space,

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to move out of flats into a home with their own front door,

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their own patch of garden and into an area they feel safe and secure.

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But many are also desperate to avoid the suburbs,

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with long commuting times, and don't want to leave the city at all.

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Now, this property offers a very real solution to that problem

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and, subject to planning,

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there's also potential to go up into the loft,

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giving you that third bedroom,

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making the house even more family-friendly.

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A City worker may well feel that, by buying around here,

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there's that winning combination

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of space for the kids without sacrificing the culture.

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It comes at a price,

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but that's something many will be prepared to pay to have it all.

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Let's ask a local estate agent for her opinion

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on this place, which had a guide price of £395,000.

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First impression is, it needs to be turned back into a house.

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The people that live round here are mainly families.

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There aren't many flats, mostly houses.

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People will buy them and do them up to their own spec

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or possibly put the loft on too.

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Many properties on this street have attic conversions,

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giving them a third bedroom.

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But what could this one achieve if restored to a two-bedroomed house?

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Renovated as a two-bedroomed house,

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you would get between £625,000 and £650,000,

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and if it was renovated as a three-bedroomed house,

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you would get up to £675,000 for it.

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And rental value?

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As a renovated two-bedroomed house, you'd get around £400 a week

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and as a renovated three-bedroomed house,

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about £500 per week.

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That translates to between £1,600 and £2,000 a month.

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So, it looks like this property has the potential

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to reap rewards on either resale or rental markets.

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This is a very special part of town,

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which requires a significant income to afford.

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But I think with this lot,

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you've come across that extra-special commodity,

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the must-have house.

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This would make somebody a wonderful home

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or potentially a wonderful profit.

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Let's see who bought this at the auction.

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450? 450 anywhere?

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I think it's worth 450 all day long.

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I don't know, 370. Won't go below 370. 370 in the aisle. 375?

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Sorry, 375. 380.

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385.

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390.

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395. 400.

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405. 410.

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415. 420.

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425.

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430 in the aisle. 435.

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440.

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445.

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450. 451.

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452.

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453. 454.

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455.

0:19:060:19:08

456. 457.

0:19:080:19:11

456 with you. 457. Anyone else?

0:19:110:19:16

First time, 457. New spot. 458.

0:19:160:19:21

459.

0:19:210:19:23

460.

0:19:230:19:26

460, sir? 460, yes.

0:19:260:19:27

Down here, 460.

0:19:270:19:30

461. 462?

0:19:300:19:33

461. First... 462 right at the back.

0:19:360:19:41

463. 464. 465.

0:19:410:19:44

466. 467.

0:19:440:19:47

468.

0:19:470:19:49

469. 470.

0:19:490:19:53

Yes?

0:19:530:19:55

471?

0:19:550:19:57

470. Anyone else?

0:19:570:19:59

First time, second time, third and last time, if you're all done...

0:19:590:20:04

And the cool customer at the back with his bid of £470,000 -

0:20:040:20:08

£75,000 over the guide price - was Sean.

0:20:080:20:13

I met his friend and business partner Richard at the house.

0:20:130:20:17

Both are from South Africa, but now live in London where they develop properties.

0:20:170:20:24

Richard's background is in accountancy. So, will he be able to make the figures here stack up?

0:20:240:20:31

Richard, congratulations. It wasn't you that was at the auction, was it?

0:20:310:20:34

No, it wasn't, it was my partner, Sean, who I've worked with now

0:20:340:20:38

for the last five years, developing property in London.

0:20:380:20:41

Were you happy with the price because you did go over the guide price?

0:20:410:20:45

We did, but I just believe in the area and the potential of the place.

0:20:450:20:50

We've done a lot of refurbishments ourselves with our team

0:20:500:20:53

and I think it's a place we'll be able to sort out really well.

0:20:530:20:57

Are you going to keep this as two flats?

0:20:570:20:59

No, we are going to convert it into a house.

0:20:590:21:02

I just feel that as two flats, it doesn't make sense.

0:21:020:21:04

I think the potential of selling it

0:21:040:21:06

to an end user as a full house will definitely get us the best returns.

0:21:060:21:11

I am so pleased you've said that, it just doesn't work as two flats.

0:21:110:21:14

It feels like just the upstairs and the downstairs.

0:21:140:21:18

The flat at the moment is very poky, so having two flats as it is now,

0:21:180:21:21

it's got the potential to be a really nice home at the end of the process.

0:21:210:21:25

I'm delighted to hear that Richard and I are of one mind when it comes to these two flats.

0:21:250:21:31

Richard and Sean are childhood friends.

0:21:330:21:36

After meeting up again in London a few years ago,

0:21:360:21:39

they decided to join forces in the property business

0:21:390:21:44

and, together, they've developed eight properties so far.

0:21:440:21:48

-Tell me a bit about yourself.

-I'm originally from South Africa

0:21:480:21:51

and I've been here in London three years.

0:21:510:21:54

I've joined together with Sean, my business partner, who's been here for 11 years now.

0:21:540:22:00

-Why do you think you and Sean make a good business couple?

-He's the entrepreneur

0:22:000:22:04

and I think that, while we both debate and analyse whatever we are doing, I'm the more controlled one

0:22:040:22:10

and he'll openly admit that he's the one who goes out with ideas

0:22:100:22:14

and generates a lot of what we do. But it's a good team.

0:22:140:22:18

Richard and Sean have applied for planning permission to return this property to a house,

0:22:180:22:22

build an extension in the back garden and convert the attic space.

0:22:220:22:27

They hope to achieve all this in just three months.

0:22:270:22:31

They also know they need a high-spec finish inside

0:22:310:22:34

to generate a high sell-on price.

0:22:340:22:38

What sort of interiors are you going to be showing

0:22:380:22:41

and demonstrating inside? How is it going to look and feel?

0:22:410:22:45

It's all really about the finishes in the end.

0:22:450:22:48

We'll spend X amount doing the structural stuff,

0:22:480:22:50

but we want to put a lot of our budget into getting nice finishes

0:22:500:22:54

to sell it to the high-end user, the professional couple,

0:22:540:22:57

with a nice big bedroom with the en-suite bathroom and put a lot of effort into the final finishes.

0:22:570:23:02

-I really think it has to scream luxury as well.

-I think so.

0:23:020:23:06

So, straight from the accountant's mouth, what is the budget for the work you need to do here?

0:23:060:23:12

With the purchase price of £470,000,

0:23:120:23:15

I would like to see it coming in under £105,000 -

0:23:150:23:18

all the refurbishment work.

0:23:180:23:20

Are you worried you may have paid too much on auction day?

0:23:200:23:24

No. I think we can get a good asking price with good finishes here.

0:23:240:23:27

-So, are you having sleepless nights about anything?

-I was.

0:23:270:23:30

We had a property that was causing me to wake up during the night,

0:23:300:23:34

but at the moment, things have been going well, we managed to sell it.

0:23:340:23:39

At the moment, this one is a beauty, there is no waking up to be done?

0:23:390:23:42

-I'm very confident on this one.

-Good luck with this.

0:23:420:23:46

-It's been great meeting you, Richard, and I hope this goes really well. Thank you.

-Thank you.

0:23:460:23:52

Richard and Sean have got a corker of a project here

0:23:520:23:56

and this could be one heck of a transformation.

0:23:560:23:59

But only if they get that planning permission.

0:23:590:24:02

Otherwise, accountant Richard will be counting more sheep than profit.

0:24:020:24:07

You can join me later in the programme to find out how it goes.

0:24:070:24:10

Coming up, I visit this terrace in Leeds where I'm intrigued

0:24:110:24:16

to find out what's going on behind...the green door. Hm.

0:24:160:24:20

In London, how is Richard getting along with his renovation?

0:24:230:24:25

I think at the end of the day, we are very happy with where we are.

0:24:270:24:31

First, has this renovation proved a painful process for Ian and Tina?

0:24:320:24:38

It's like childbirth - the pain's forgotten the next day.

0:24:380:24:41

Back to Devon now and the village of Roborough,

0:24:440:24:46

five miles from Plymouth.

0:24:460:24:48

That's where husband and wife Ian and Tina bought this run-down farm cottage for £128,000.

0:24:480:24:53

'They aim to restore the tired interior and give it back some of its original character.

0:24:530:25:00

'They'll add it to their small portfolio of rental properties.'

0:25:000:25:05

So what kind of time scale?

0:25:050:25:06

Well, if you are asking Tina, it will be about eight weeks.

0:25:060:25:09

I reckon probably more like 12.

0:25:090:25:12

And then it depends what else we uncover as to whether that would need to be extended.

0:25:120:25:17

Tina and Ian tend to renovate a property a year

0:25:170:25:21

and this year's model has got lots of potential.

0:25:210:25:25

But its rundown looks will need quite a lot of work

0:25:250:25:28

to make it attractive to the rental market.

0:25:280:25:31

We returned four months later to see if Ian and Tina have made this eye-catching.

0:25:310:25:36

The outside has had a fresh lick of paint.

0:25:360:25:38

But what's the inside got to offer?

0:25:380:25:41

Well, quite a lot. The dated living room has been opened up

0:25:460:25:49

to be replaced with a beautiful, rustic reception area.

0:25:490:25:54

The stairs have been rotated at 180 degrees

0:25:540:25:56

and the living room wall removed,

0:25:560:25:58

bringing space and light to what was formerly a dark, dreary entrance.

0:25:580:26:03

The living room has also been renovated and made fresh and welcoming.

0:26:030:26:10

The kitchen is now an impressive space with tiled floors

0:26:100:26:15

and stylish new units installed.

0:26:150:26:17

At the far end, a contemporary bathroom suite has been installed.

0:26:170:26:22

The whole ground floor has undergone radical renovation.

0:26:220:26:27

Tina made some fascinating discoveries about the house,

0:26:270:26:30

including its previous life as a village Post Office.

0:26:300:26:35

We found some amazing things in the lounge.

0:26:350:26:39

The first thing is the slate floor

0:26:390:26:41

which we unearthed fairly quickly on in the project.

0:26:410:26:46

It was full of mud. So we found the slate floor.

0:26:460:26:48

We were also told that because this was a Post Office,

0:26:480:26:51

that would absolutely support why we've got so much wear and tear.

0:26:510:26:57

We've got some really big dips in the floor

0:26:570:26:59

where obviously people came in over the years and bought their wares.

0:26:590:27:04

We also found that we could restore these shutters around the window

0:27:040:27:09

which were already here, but they were rotten and not in good shape.

0:27:090:27:13

So we've done some work there and now it's a really nice window seat.

0:27:130:27:17

Then the final surprise was this gorgeous inglenook

0:27:170:27:21

which the guys just kept removing and removing bricks and plaster

0:27:210:27:24

and discovered this great fire which we love. It's just worked well

0:27:240:27:29

to put the wood burner in there so that we've got a great cosy lounge.

0:27:290:27:34

Ian and Tina have put their own "stamp" on this former Post Office

0:27:340:27:38

and have made a really "first-class" job of the layout!

0:27:380:27:43

And, let's not forget upstairs where, needless to say,

0:27:440:27:48

the bedrooms have undergone a change as well.

0:27:480:27:51

The landing here is perhaps one of the biggest changes.

0:27:510:27:55

Because we've turned the stairs around, we've been able to create the landing at the front of the house

0:27:550:28:00

and make use of this window which was previously in one of the bedrooms just stuck in the corner.

0:28:000:28:04

That's allowed a lot of natural light to come flooding down through the stairs and down into the kitchen,

0:28:040:28:10

bringing light from the front to the back of the house.

0:28:100:28:13

We've also managed to keep the original oak beams and lintels across the windows.

0:28:130:28:19

By keeping those exposed,

0:28:190:28:23

it's brought a real old feel back to the property.

0:28:230:28:26

We've used the soft corners to keep that feel going throughout also.

0:28:260:28:32

On part of our journey of discovery,

0:28:320:28:35

we found this little fireplace here,

0:28:350:28:37

which is quite a contradiction to the styling of the rest of the house,

0:28:370:28:41

being quite Art Deco in appearance,

0:28:410:28:43

probably dates back to the '20s or '30s, something like that.

0:28:430:28:46

So we've decided to keep that, as well,

0:28:460:28:49

a little feature and part of history of the property.

0:28:490:28:52

We've also managed to include an en-suite toilet

0:28:520:28:56

and washing facilities as well so that those upstairs have that

0:28:560:29:00

without having to go downstairs to the bathroom.

0:29:000:29:03

Across the landing, the other bedroom has no such luxury

0:29:030:29:07

and even had some space removed from it to fit in the toilet.

0:29:070:29:11

But even so, Ian and Tina have made this top floor work to its maximum potential.

0:29:110:29:16

But there were many obstacles to getting to this stage,

0:29:160:29:20

with one of the coldest winters on record being the main culprit.

0:29:200:29:24

We've actually drawn a new learning through this project,

0:29:240:29:27

which is to try and avoid buying right in the middle of the winter.

0:29:270:29:30

We tend to buy in the spring

0:29:300:29:32

and working through to a tight timeline with the weather conditions and the cold and the wet,

0:29:320:29:39

you know, is certainly something that we've learned from.

0:29:390:29:42

The severe weather pushed the time scale up to 18 weeks, but even so,

0:29:420:29:48

with Ian doing the bulk of the work himself, it's an amazing renovation.

0:29:480:29:52

Tina dealt with the decor and the style of the house,

0:29:520:29:55

but how did the couple feel during the renovation?

0:29:550:29:59

Fundamentally, it brings with it its stresses and strains

0:29:590:30:03

and I tend to shoulder most of those

0:30:030:30:06

and let them overflow on to those that are nearest and dearest

0:30:060:30:11

as we go through the project.

0:30:110:30:13

But I like to think it's a little bit like childbirth and the pain's forgotten the next day.

0:30:130:30:17

# Wonderful baby Living on love... #

0:30:170:30:21

Well, I'd say they've got themselves a beautiful, bouncing home here.

0:30:210:30:24

But did this long delivery affect their budget?

0:30:240:30:28

We think we're round about the 13,500 mark

0:30:280:30:32

which is a little over the original budget of 10,000,

0:30:320:30:36

which I believe was almost optimistic anyway, hence the contingency.

0:30:360:30:41

Even so, we're a little beyond that,

0:30:410:30:43

but that's taking into account the level of work that needed to be done.

0:30:430:30:47

Well, Tina and Ian may have saved the house,

0:30:510:30:53

but will it prove a good investment?

0:30:530:30:56

Bearing in mind that outlay of £141,500,

0:30:560:31:00

we asked two local property experts what they thought of their work.

0:31:000:31:04

My first impressions of the cottage are, nice and light, bright,

0:31:070:31:10

airy, good-sized rooms.

0:31:100:31:12

It's bigger on the inside than it looks from the outside.

0:31:120:31:15

Yes, very impressed walking in. The whole place has changed.

0:31:160:31:20

The owner's done a good job, really good.

0:31:200:31:22

The layout is very good, works very well.

0:31:220:31:24

As you come in, you're directly into the lounge,

0:31:240:31:27

and off that, you've got another reception room

0:31:270:31:29

and steps down to a nice modern kitchen and bathroom.

0:31:290:31:32

As Tina and Ian aim to rent the house out,

0:31:340:31:36

what sort of income could it achieve on the rental market?

0:31:360:31:39

The rental value of the cottage

0:31:410:31:43

would be about £675 to £700 per calendar month.

0:31:430:31:48

The rental value for this property would be in the region of £750 per calendar month.

0:31:480:31:53

That works very well for us.

0:31:530:31:55

Our plan is to rent the property and anything in excess of £650,

0:31:550:32:01

again, we're very happy with that.

0:32:010:32:03

So all in all, we're really pleased with those figures.

0:32:030:32:06

But if Tina and Ian decide to off-load this particular baby,

0:32:060:32:10

the experts think it could have a resale value of between £165,000 and £175,000,

0:32:100:32:16

giving the couple a possible profit of between 23,000 and 33,500 pre-tax profit.

0:32:160:32:23

But they're in this for the long-term

0:32:230:32:26

and are proud of this addition to their portfolio.

0:32:260:32:28

We're delighted with the house. We love it.

0:32:280:32:31

And we'll continue to keep it maintained to, hopefully, a high standard,

0:32:310:32:36

working with whatever tenants go in.

0:32:360:32:39

And we'll continue to look for period properties as well,

0:32:390:32:42

because that's what we like. But we're delighted with it.

0:32:420:32:45

I'm in West Yorkshire now, in Leeds,

0:32:490:32:52

one of the fastest-growing cities in the UK.

0:32:520:32:55

It has the second-largest number of IT employees in the country,

0:32:550:32:59

and is one of the most important financial services centres outside London.

0:32:590:33:03

So if you're looking to invest in the property market,

0:33:030:33:06

this may be the place to do it.

0:33:060:33:08

Well, I'm about two miles outside Leeds city centre here

0:33:100:33:14

to see what's known as a back-to-back property.

0:33:140:33:17

It's known as that because literally it is sharing a rear wall with another house.

0:33:170:33:22

It was a way in Victorian times of getting high-density housing together.

0:33:220:33:26

Guide price was 50,000 quid, three-bedroomed,

0:33:260:33:29

erm...behind this hedge thing.

0:33:290:33:32

A couple of minutes with a hedge trimmer will sort that out.

0:33:320:33:36

This is property itself, three storeys with a cellar.

0:33:360:33:40

Let's take a look inside.

0:33:400:33:41

Back in 1918, 70% of the population of Leeds lived in back-to-back houses like this.

0:33:430:33:49

And it's estimated there are still around 18,000 left in the city.

0:33:490:33:54

Well, nice that there's that little entrance porch,

0:33:540:33:56

and then into your lounge.

0:33:560:33:58

Straight away, I'm seeing it is fairly tired

0:33:580:34:02

and in need of a bit of tender loving care, for sure.

0:34:020:34:05

Possibly a bit of damp coming through the ceiling there.

0:34:050:34:08

Need to check that out.

0:34:080:34:10

Looks like there is a few original features left, which is nice to see.

0:34:100:34:13

Through there, a kitchen.

0:34:130:34:16

What I'm wondering is, if there's a way to take this wall out,

0:34:160:34:19

and making it maybe much bigger, kind of like a kitchen-living area.

0:34:190:34:24

Something to look at. But all in all, not a bad start.

0:34:240:34:28

But one thing already counting against this place is the gas fire.

0:34:280:34:31

It's the only one in the house, so central heating's required here.

0:34:310:34:35

So up on to the first floor and behind the door... Oh!

0:34:360:34:41

A bathroom and loo.

0:34:410:34:43

Doesn't look to be in too bad... No, I'm lying.

0:34:430:34:45

Er, needs complete refurbishment!

0:34:450:34:49

Then through to your first bedroom. A good size, I have to say.

0:34:490:34:52

So that's that. And then, I wonder...

0:34:520:34:56

what's behind here.

0:34:560:34:58

The green door. Hmm.

0:35:000:35:02

# So I could find out what's behind the green door.... #

0:35:020:35:05

And behind that green door are stairs,

0:35:060:35:09

leading up to the attic conversion.

0:35:090:35:12

Well, no surprises, I guess. Two bedrooms up here.

0:35:120:35:14

But before I get to them, something which I wasn't expecting.

0:35:140:35:18

Look at the size of that crack.

0:35:180:35:19

It's all over this little part of the building.

0:35:210:35:24

It goes all the way round there and there. That's not good.

0:35:240:35:27

I'd want to have that checked out by a structural engineer before I went very much further at all.

0:35:270:35:32

Doesn't get better in here, I'm afraid

0:35:330:35:35

One of the bedrooms up here, and as you can see,

0:35:350:35:38

looks like there's been some water ingress from the roof.

0:35:380:35:41

That would indicate that the roof itself needs looking at as well.

0:35:410:35:44

So all in all, a few bits and pieces to do here.

0:35:440:35:48

Also, the third bedroom is tiny,

0:35:500:35:53

barely big enough to squeeze in a single bed.

0:35:530:35:55

It might be OK as a nursery,

0:35:550:35:58

but I think you'd struggle to rent it out as a bedroom.

0:35:580:36:01

There is some good news in that cellar,

0:36:010:36:03

which has separate access from the front and would be handy for storage.

0:36:030:36:08

But in general, it's a property with a few problems -

0:36:080:36:11

cracks, damp and no central heating.

0:36:110:36:13

Of course, that's reflected in that tempting £50,000 guide price.

0:36:130:36:18

We asked a local estate agent for a second opinion

0:36:190:36:23

on this Leeds back-to-back.

0:36:230:36:25

'The property's a great blank canvas.'

0:36:270:36:30

Double glazing's in, so that's a cost which doesn't have to be looked at.

0:36:300:36:33

New kitchen, bathroom, central heating and then decor.

0:36:330:36:37

Job's a good one.

0:36:370:36:38

So if bought as an investment, would this suit the rental market or be better if done up to sell on?

0:36:380:36:44

'In my opinion, it's better to buy these properties and let them out at the moment.

0:36:440:36:48

'The current market conditions say that prices are not going to go up that much,

0:36:480:36:52

'even if you do do the work to the properties at the moment.'

0:36:520:36:55

So it's better to get tenants in and get some money back on the property.

0:36:550:36:59

What rent could it earn once renovated?

0:36:590:37:02

'Currently in the rentals market, if this was going to go up for let...'

0:37:020:37:06

I would be putting a valuation of £475 to £550 per calendar month.

0:37:060:37:10

What could it get if sold on?

0:37:100:37:14

Once it's been renovated, I would put a valuation of £70,000 to £75,000.

0:37:140:37:18

So, a few things to sort out.

0:37:230:37:25

The roof, for sure, and those cracks on the top floor.

0:37:250:37:28

But principally, a solid house in a good area for rental.

0:37:280:37:33

So let's see who fancied it when it went under the hammer.

0:37:330:37:35

It was late in the day,

0:37:350:37:39

but let's see who stayed for one of the last auction lots.

0:37:390:37:42

Start me off, please, at the guide. £50,000, 50 if you will?

0:37:420:37:47

45, then, to start things off. 45 I'll take.

0:37:470:37:49

Thanks, at 45, I'll take yours. 46, then?

0:37:490:37:52

46 anywhere else? Are we all finished at £45,000?

0:37:520:37:56

Sorry, 46. I didn't see you, sir.

0:37:560:37:58

47, then?

0:37:580:38:00

47, you will. 48.

0:38:000:38:02

49.

0:38:020:38:03

Half? All right. 48,500. 49, then sir? 49 you will.

0:38:030:38:07

And a half.

0:38:070:38:08

£49,000, then, we have. 49,500 anywhere else?

0:38:080:38:12

Selling, then, for the first time at £49,000.

0:38:120:38:15

Second, third and final time, all finished?

0:38:150:38:20

Thank you, sir.

0:38:200:38:22

That final and successful bid of 49,000 was made by Parminder,

0:38:220:38:27

a local property developer.

0:38:270:38:30

He's bought the house to renovate and then rent out.

0:38:300:38:33

I met him at his new back-to-back to find out more.

0:38:330:38:37

-Parminder, lovely to meet you.

-Hello.

-Congratulations.

0:38:370:38:40

-Thank you.

-Tell me why you wanted to buy this place.

0:38:400:38:43

Well, it was a good investment so I thought I would bid for it.

0:38:430:38:48

-The property I wanted got sold prior, so I just bought this one.

-Right.

0:38:480:38:53

So what was it about this one that you liked?

0:38:530:38:56

The price, mainly, actually.

0:38:560:38:58

I think it was a good price, opportunity arised, yeah? So I just bought it.

0:38:580:39:02

-Had you seen it before the auction or not?

-I only seen it from outside.

0:39:020:39:06

Right.

0:39:060:39:07

So, for Parminder, this was an impulse purchase

0:39:080:39:12

after the property he was interested in sold prior to the auction.

0:39:120:39:16

And not only had he not viewed it inside before buying,

0:39:160:39:19

he'd also taken another risk.

0:39:190:39:23

Presumably if you bought it last minute, you didn't look at legal packs and things like that?

0:39:230:39:27

-No, but there's nothing really.

-But there could have been!

0:39:270:39:31

Could have been, yes, yes. That's the risk I took, obviously.

0:39:310:39:35

Risks are something you're comfortable with?

0:39:350:39:37

Up to reasonable, calculated risks, as you call it, yes.

0:39:370:39:42

You didn't see it inside before you bought it.

0:39:420:39:44

What did you think when you walked through the door?

0:39:440:39:48

It was fine from when I saw the first floor.

0:39:480:39:52

When I saw the crack, I was a bit concerned. I already spoke to surveyor.

0:39:520:39:55

He said it's settlement and there's nothing really serious to worry about.

0:39:550:39:59

That's the wall attached to the other property?

0:39:590:40:02

Yes, it's a shared side, so both properties will be the same,

0:40:020:40:07

and it's just the settlement, as he said.

0:40:070:40:10

Having got that positive news from a surveyor,

0:40:100:40:13

I think Parminder's had a lucky break here.

0:40:130:40:16

When it comes to those cracks, it could've been a lot worse.

0:40:160:40:20

Still, he does have a lot of property experience,

0:40:200:40:23

as he's been developing for ten years now.

0:40:230:40:26

He's been a full-time landlord for the last four years,

0:40:260:40:29

but usually buys in areas of Leeds popular with students,

0:40:290:40:32

so this is a bit of a departure and a new location for him.

0:40:320:40:36

But he wasn't always a property developer.

0:40:360:40:40

-I used to actually be a shopkeeper.

-Oh!

0:40:400:40:43

-Long hours.

-Long hours, yeah.

0:40:430:40:46

But I started building property since 1984, when I had a shop.

0:40:460:40:51

So I bought some property and rentals at the same time.

0:40:510:40:55

So I built a portfolio over the years, slowly.

0:40:550:40:57

What's the plan? Talk me through what you'll do.

0:40:570:41:00

I'm going to obviously get the roof done first

0:41:000:41:05

and just start from the top and work down.

0:41:050:41:07

Put a new bathroom, new kitchen, central heating.

0:41:070:41:11

Obviously take the paper off and restart again, you know?

0:41:110:41:15

Parminder will carry out most of the work himself,

0:41:170:41:21

which will keep the costs down.

0:41:210:41:22

What kind of budget have you got to do the work?

0:41:240:41:26

About 7,000 or 8,000, something like that.

0:41:260:41:31

Presumably you've done this before?

0:41:310:41:33

Oh, yes, yes, yes, I do a lot of work myself as well.

0:41:330:41:36

What do you get involved in?

0:41:360:41:37

Mainly plumbing. I'm a gas-safe engineer,

0:41:370:41:40

so I can do the central heating and the plumbing and everything.

0:41:400:41:44

-That's convenient, isn't it?

-Yeah, keep the costs down.

0:41:440:41:47

What kind of timescale for sorting it?

0:41:470:41:48

Two to three months, about three months, yes.

0:41:480:41:52

Then back on the rental market.

0:41:520:41:53

-Yeah, should be.

-Congratulations. Good luck with it.

-Thank you.

0:41:530:41:58

-We look forward to seeing how you get on.

-Thank you very much.

0:41:580:42:00

Well, buying a property without seeing it inside

0:42:010:42:05

or reading the legal pack is a seriously risky strategy

0:42:050:42:09

and one I do not advise.

0:42:090:42:11

However, it seems that Parminder has got away with it on this occasion,

0:42:110:42:14

although I think he might have a few more structural issues than he's expecting.

0:42:140:42:19

Find out how he gets on later in the show.

0:42:190:42:22

Well, time has simply flown by.

0:42:260:42:29

So, how have our buyers got on? Or has time been an enemy?

0:42:290:42:33

Let's go back and check out what's happened.

0:42:330:42:36

Let's return to The Tonsleys in Wandsworth, Southwest London.

0:42:380:42:43

The traditional terraced houses in this quiet corner are in high demand.

0:42:430:42:48

I viewed this property, which had a guide price of £395,000,

0:42:480:42:53

and had been converted into two pokey flats.

0:42:530:42:55

This area is extremely popular with professional couples

0:43:020:43:06

and families and demand for flats is limited.

0:43:060:43:09

It was purchased at auction by Richard

0:43:100:43:13

and his business partner, Sean, for 470,000.

0:43:130:43:16

I wanted to know if Richard agreed with me

0:43:180:43:21

that this place should be restored to the house it was originally.

0:43:210:43:25

So, Richard, are you going to keep this as two flats?

0:43:260:43:29

No, we're converting it immediately into a house.

0:43:290:43:31

I feel as two flats, it doesn't make sense.

0:43:310:43:34

I'm so pleased you've said that!

0:43:340:43:36

It just doesn't work as two flats, does it?

0:43:360:43:38

It feels like just the upstairs and the downstairs.

0:43:380:43:41

Having two flats as it is now,

0:43:410:43:43

it's got the potential to be a really nice home at the end of the process.

0:43:430:43:46

In order to maximise their potential profit,

0:43:480:43:50

Richard and Sean had applied for planning permission

0:43:500:43:53

to construct a rear extension and build into the attic space.

0:43:530:43:57

Their £105,000 budget ensured they could splash the cash

0:43:590:44:03

to achieve a high-spec, high-style finish.

0:44:030:44:06

Three months have flown by and work is well underway.

0:44:110:44:15

But it would appear far from finished.

0:44:150:44:18

Richard ripped out the interior and stripped it back to the brick

0:44:200:44:24

to create what will be a warm and welcoming family home,

0:44:240:44:29

rather than the dark and dank flats this property was previously.

0:44:290:44:33

To the rear will be an open-plan living and kitchen area.

0:44:330:44:38

Planning permission was granted

0:44:380:44:40

and we can see the extension that will become the kitchen.

0:44:400:44:44

All right, well, this is the downstairs reception area

0:44:460:44:50

and we're going to put a lounge in the front

0:44:500:44:54

and then a television room here in the middle,

0:44:540:44:56

leading through to the kitchen, which is going to lead outside

0:44:560:45:01

through double doors, and then out on to a decked garden out this end.

0:45:010:45:07

Obviously, having the side return

0:45:070:45:09

creates a lot more space that we were requiring to do that.

0:45:090:45:12

Upstairs, like downstairs, has had all the interior walls removed.

0:45:120:45:18

This will allow Richard and Sean to remodel the layout to their specifications

0:45:180:45:23

and create a large master bedroom with walk-in closet and en suite.

0:45:230:45:28

Steel supports have been added to carry the weight of the roof

0:45:280:45:31

on what will be the attic conversion.

0:45:310:45:35

Coming upstairs here, you'll walk into the main bedroom

0:45:380:45:41

and this is where we've come to create a lot of the space in the house

0:45:410:45:46

in moving through a walk-in closet into the main en-suite bathroom.

0:45:460:45:50

Also on the first floor at the far side,

0:45:500:45:52

we'll have a bedroom which could either be a double bedroom or study.

0:45:520:45:56

And then there'll be a staircase here,

0:45:560:45:59

which will go up into the dormer loft and have another bathroom and another double bedroom upstairs.

0:45:590:46:04

Alongside the dramatic change in layout,

0:46:060:46:08

Richard and his business partner, Sean,

0:46:080:46:11

planned an equally impressive interior.

0:46:110:46:14

But their plans were put on hold

0:46:140:46:16

when they got a phone call from a potential purchaser.

0:46:160:46:19

We've sold it halfway through development.

0:46:210:46:24

We had a buyer who found the details of the planning permission

0:46:240:46:27

off the council website and approached us

0:46:270:46:30

and we've decided that it's best to sell on to him immediately.

0:46:300:46:33

So Richard and Sean have agreed to continue work on the house

0:46:340:46:37

until the first fix is completed.

0:46:370:46:40

That means all the building work is done,

0:46:400:46:43

including electric cabling and water and sewage plumbing.

0:46:430:46:47

But no fixtures or fittings have been installed.

0:46:470:46:50

It is sad not to see the building get to its finished product,

0:46:520:46:57

but at the same time, we're really happy to cut ourselves

0:46:570:47:00

clean of all of the admin to get it to that stage.

0:47:000:47:03

So it takes away the nightmare of the end of the refurbishment stage,

0:47:030:47:07

when you're trying to curtail costs.

0:47:070:47:11

I think, at the end of the day, we're very happy with where we are.

0:47:110:47:14

Richard has a contract with his builders

0:47:160:47:19

to complete the first fix for £50,000.

0:47:190:47:21

Add to that their purchase price of 470 grand

0:47:230:47:25

and their total investment here is £520,000.

0:47:250:47:31

We asked two local estate agents for their impressions

0:47:350:47:38

on what Richard and Sean have achieved with this project.

0:47:380:47:41

They've definitely made the best use of the property by extending

0:47:450:47:49

into the loft, the layout is by far the best they could have done.

0:47:490:47:55

The extension adds to the whole overall feeling of space, light

0:47:550:47:59

and creates a really good open-plan ground floor.

0:47:590:48:05

I do think he's made best use of the space.

0:48:060:48:08

It's nice to see somebody who's actually managed to

0:48:080:48:11

increase the value by increasing the square footage,

0:48:110:48:14

rather than just doing a cosmetic make-over.

0:48:140:48:16

The experts are impressed with the new layout of this house.

0:48:180:48:21

Let's hear their sell-on valuations for this property when complete.

0:48:210:48:25

I think the resale value of this property,

0:48:270:48:29

when everything is finished, including kitchens and bathrooms to a good spec,

0:48:290:48:33

would be between £725,000 and £750,000.

0:48:330:48:38

When fully completed,

0:48:380:48:40

I would expect the value to be in the region of £750,000.

0:48:400:48:44

If Richard and Sean had kept their original £105,000 budget,

0:48:440:48:50

those figures would have earned them a pre-tax profit

0:48:500:48:53

of between 150,000 and 175,000.

0:48:530:48:58

That's all ifs and buts, though.

0:48:580:49:00

They actually sold the house in its incomplete state for £665,000,

0:49:000:49:07

earning them a pre-tax profit of 145 grand!

0:49:070:49:12

Not too bad at all.

0:49:120:49:13

So, do they have any regrets about not seeing this project through to completion?

0:49:130:49:19

I believe we made the right decision.

0:49:190:49:20

I feel that there is a slight bit of regret

0:49:200:49:24

about the fact we never took it to its real end value

0:49:240:49:27

and the achievement of having fulfilled what the potential of the property is,

0:49:270:49:32

but at the moment, I'm very happy to take what we've made and walk on to the next one.

0:49:320:49:36

Let's return to the back-to-back terraces of Leeds,

0:49:440:49:47

where I viewed this three-bedroomed house.

0:49:470:49:50

It was purchased at auction for 49,000

0:49:500:49:53

by professional developer Parminder,

0:49:530:49:55

to add to his portfolio of over 20 rental properties.

0:49:550:49:59

However, he had not viewed the interior of the terrace.

0:50:040:50:08

While the mould and mildew failed to dampen his spirits,

0:50:080:50:12

the cracks in the ceiling and the rear walls proved to be quite a shock.

0:50:120:50:16

I was surprised an experienced developer such as Parminder

0:50:190:50:22

would gamble on a property he'd never viewed.

0:50:220:50:25

So you didn't see it inside before you bought it.

0:50:270:50:30

What did you think when you walked through the door?

0:50:300:50:32

It was fine. When I saw the crack, I was a bit concerned.

0:50:320:50:35

But taking risks is something you're quite comfortable with?

0:50:350:50:38

Calculated risks, I should call it, yes.

0:50:380:50:40

So has Parminder's purchase proved to be risky business

0:50:400:50:45

or a risk worth taking?

0:50:450:50:48

Four months later, we've returned to find out,

0:50:490:50:52

and I'm relieved to say, the hedge has been trimmed.

0:50:520:50:54

# Risky business

0:50:580:51:01

# Ah ha, ah ha

0:51:010:51:03

# Some kind of risky business #

0:51:030:51:05

Parminder has carried out the majority of the work himself,

0:51:080:51:11

including fitting a quality kitchen.

0:51:110:51:14

This shows that even though this house is destined for the rental market,

0:51:140:51:18

Parminder doesn't cut corners where it counts.

0:51:180:51:23

Well, we've done a lot of work since you were here.

0:51:230:51:26

Virtually complete renovation, yes.

0:51:260:51:29

Replastered the whole place, new kitchen, skirtings, architraves, you know, so...

0:51:290:51:36

Re-painted the whole place.

0:51:360:51:38

In the sitting room, Parminder has removed the gas fire

0:51:420:51:45

and installed an all-new central heating system.

0:51:450:51:48

Upstairs, the quality workmanship continues.

0:51:490:51:51

The bathroom felt cramped,

0:51:530:51:54

and its black-and-white decoration looked harsh and cold.

0:51:540:51:58

Now, it's cool, calm and collected, just like Parminder.

0:51:580:52:02

There are large floor and wall tiles in neutral tones,

0:52:030:52:06

a modern white suite and contemporary fixtures and fittings.

0:52:060:52:12

It used to be a big cupboard here for the hot-water cylinder.

0:52:120:52:17

We removed that and created a space for a bath,

0:52:170:52:22

moved the bath this way and made a space for a toilet there,

0:52:220:52:26

and obviously fitted the new heating and wall tiles as well.

0:52:260:52:30

Parminder fitted the bathroom suite himself and did the tiling,

0:52:300:52:33

achieving a quality finish.

0:52:330:52:35

He's obviously not afraid of a little hard graft,

0:52:350:52:38

and his qualification as a heating engineer has come in handy too.

0:52:380:52:42

I fitted the kitchen myself, the bathroom, did the tiling.

0:52:440:52:48

The central heating myself. So most of it, apart from plastering.

0:52:480:52:53

The master bedroom, once dizzying in its decor, has been stripped,

0:52:530:52:58

replastered and re-painted in restful tones,

0:52:580:53:00

with contrasting curtains, carpets and a new radiator fitted.

0:53:000:53:06

The attic conversion was the main cause for concern.

0:53:070:53:11

The cracks that once snaked across the walls and ceilings are gone.

0:53:110:53:16

There was a lot of cracks, and there was one big crack.

0:53:160:53:19

We called a surveyor, he examined it, and said there is no subsidence.

0:53:190:53:24

We just repaired it, and that was the end of it, really.

0:53:250:53:30

It was very good after that.

0:53:300:53:32

And, as for the damp-ridden bedrooms, no problem for Parminder.

0:53:320:53:36

He replaced the roof

0:53:360:53:38

and the dormer extension, which was allowing the water to come in.

0:53:380:53:42

We did a new flat roof on the top,

0:53:440:53:47

and obviously there were some other tiles and we sorted that out,

0:53:470:53:51

and everything's good now, everything's fantastic.

0:53:510:53:58

It would seem there's nothing that can faze

0:53:580:54:00

Parminder's positive can-do attitude.

0:54:000:54:05

# No problems, no problems

0:54:050:54:08

# Only solutions... #

0:54:080:54:11

Well, maybe one thing - getting all his tools

0:54:110:54:14

and equipment up that rather steep staircase.

0:54:140:54:17

# Only solutions... #

0:54:170:54:19

My legs are a lot fitter than before, yes!

0:54:190:54:23

It's good, yeah, keeping me fit, yeah.

0:54:260:54:28

Parminder completed the work within his three-month schedule.

0:54:280:54:32

But he spent £2,000 more than his eight-grand budget,

0:54:320:54:35

as he hadn't factored in replacing the dormer roof

0:54:350:54:38

and replastering all the walls.

0:54:380:54:41

However, as he's a registered gas engineer, he was able to

0:54:410:54:44

install the boiler and gas central heating himself, and he has also

0:54:440:54:48

fitted the bathroom and kitchen,

0:54:480:54:51

which certainly helped keep the costs down.

0:54:510:54:54

His total outlay, including purchase price, was 59,000.

0:54:540:54:58

Parminder plans to rent out this property,

0:55:020:55:05

so we asked two local estate agents for their opinion.

0:55:050:55:08

Was Parminder's impulse purchase at the auction worth the risk?

0:55:100:55:16

I think he's done a really, really good job.

0:55:160:55:19

Sale or rental, people coming,

0:55:190:55:21

first impressions would be really good.

0:55:210:55:24

Interest would be high, and I think the pictures will look good

0:55:240:55:27

from a marketing perspective.

0:55:270:55:28

First impressions are absolutely brilliant.

0:55:280:55:31

The owner of the property's done a fantastic job,

0:55:310:55:34

especially the kitchen and bathroom, changed the layout

0:55:340:55:36

of the bathroom, which has opened up some more space,

0:55:360:55:39

and the kitchen, quality of finish is really good.

0:55:390:55:42

The estate agents believe this property

0:55:420:55:44

could make 75 to £80,000 on the resale market,

0:55:440:55:49

giving Parminder a pre-tax profit of between 16 and £21,000,

0:55:490:55:53

but his intention is to add this

0:55:530:55:56

to his growing portfolio of buy-to-let properties.

0:55:560:55:58

So how much could it make if he rented it out?

0:55:580:56:02

I'd suggest to a landlord in today's rental market,

0:56:020:56:05

you'll be putting this on for around £495 to £525

0:56:050:56:09

per calendar month.

0:56:090:56:11

I'd put this on the rental market for £525 per calendar month.

0:56:110:56:15

Those figures would give Parminder

0:56:160:56:18

an impressive rental yield of between 10 and 10.5%,

0:56:180:56:22

so it seems his calculated risk will earn him his reward.

0:56:220:56:27

Is he satisfied with the job well done?

0:56:280:56:31

Yeah, definitely got a job satisfaction.

0:56:330:56:36

You can see where it started and the finished product.

0:56:360:56:38

There was no real major problems, and it's been really good, actually,

0:56:380:56:43

so I'm satisfied, definitely. It's very good.

0:56:430:56:47

We hope you've enjoyed seeing today's property portfolio.

0:56:500:56:53

Join us next time for more Homes Under The Hammer.

0:56:530:56:55

-See you then.

-Goodbye.

-Goodbye.

0:56:550:56:57

Subtitles by Red Bee Media Ltd

0:57:040:57:06

E-mail [email protected]

0:57:060:57:07

Martin Roberts and Lucy Alexander visit a cottage in Devon, a converted terraced property in London and a house in Leeds. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.