0:00:00 > 0:00:06Hello. Despite the credit crunch, people still want a slice of property action.
0:00:06 > 0:00:10If you're prepared to take the plunge, auctions are a great place to start.
0:00:10 > 0:00:13It can be frightening, it can be fraught.
0:00:13 > 0:00:18But it can also be a fantastic thing to do, buying your home under the hammer.
0:00:43 > 0:00:47Some properties are really popular at auction. Others go unsold.
0:00:47 > 0:00:51So the auction room can be a difficult place to conquer.
0:00:51 > 0:00:56Here are the properties that won the hearts of our buyers on today's show.
0:00:57 > 0:01:03There are surprises in store for this terraced house in Chatham, Kent.
0:01:03 > 0:01:06This really is a little bonus room.
0:01:09 > 0:01:14I find out that rubbish isn't a problem for this Derby house.
0:01:14 > 0:01:16You get your fair share of bins!
0:01:18 > 0:01:23And I'd got my hopes up for this flat in a historic building in Oxfordshire.
0:01:23 > 0:01:27Oh, no! Such a disappointment!
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:35We find out who bought them and what they paid when they went under the hammer.
0:01:35 > 0:01:37Sold!
0:01:39 > 0:01:42I'm in Chatham in Kent today.
0:01:42 > 0:01:45Now, Charles Dickens lived here as a boy
0:01:45 > 0:01:49and described it as being the happiest period of his childhood.
0:01:49 > 0:01:52Question is, will today's property be tired and throw a tantrum
0:01:52 > 0:01:55or will it be adorable and well-behaved?
0:01:57 > 0:02:00I'm hoping this is a happy house with no tears before bedtime.
0:02:04 > 0:02:08The property is a two-bed terrace, a short walk from the town centre.
0:02:08 > 0:02:12Now, it had a guide of just 65 to £70,000.
0:02:12 > 0:02:14Let's go and see what you get for your money.
0:02:14 > 0:02:19Already I can see that you get character, always a flying start.
0:02:19 > 0:02:24The front features a lovely bay window with detailing around the pillars.
0:02:24 > 0:02:30The exposed brickwork looks sound and the roof seems in a good state of repair.
0:02:30 > 0:02:33These terraces were built rather on the snug side.
0:02:33 > 0:02:36There's not much room in this hallway.
0:02:36 > 0:02:41If I were to buy this, I'd probably take out this wall here,
0:02:41 > 0:02:43this bit here, and really open this space up.
0:02:43 > 0:02:48There's a nice sitting area through there, some steep stairs here
0:02:48 > 0:02:50and you come to the back room.
0:02:50 > 0:02:56Not a bad size, but it's all completely dated.
0:02:56 > 0:03:01Whoever buys this has to clear the house out first and basically start all over again.
0:03:01 > 0:03:05It looks like the previous tenant may have left in a hurry
0:03:05 > 0:03:07so there's plenty to be done.
0:03:07 > 0:03:12The kitchen at the back is disappointing, but there's room for improvement.
0:03:12 > 0:03:16You could increase space by moving the back door and combining it with the window.
0:03:16 > 0:03:19Tacked on to the end of the kitchen is a downstairs toilet,
0:03:19 > 0:03:23fairly common for this area, but far from ideal.
0:03:23 > 0:03:27Fingers crossed the layout is a little better upstairs.
0:03:27 > 0:03:32As you'd expect in a terrace like this, you've got a bedroom that side of the stairs
0:03:32 > 0:03:35and a bedroom this side. Not a bad size.
0:03:35 > 0:03:37But the bedroom has seen better days
0:03:37 > 0:03:42and there's been a leaky roof. The tiles have fallen down
0:03:42 > 0:03:45and it does smell a bit damp so that needs to be investigated.
0:03:45 > 0:03:47And... Oh.
0:03:47 > 0:03:50Sadly, the bathroom is there,
0:03:50 > 0:03:52leading off the main bedroom.
0:03:52 > 0:03:54Not ideal!
0:04:00 > 0:04:02Once you've tackled the damp problem,
0:04:02 > 0:04:06you could think about turning the stairs and creating a corridor to the bathroom.
0:04:06 > 0:04:11That would reduce the size of the master bedroom, though, and could be expensive.
0:04:11 > 0:04:15You'd need to be sure it would add enough value to make it worthwhile.
0:04:15 > 0:04:18Talking of stairs, I've found another set!
0:04:18 > 0:04:20This house is full of surprises.
0:04:20 > 0:04:23A cellar! You know, I didn't expect to see this
0:04:23 > 0:04:26and not a room of this size.
0:04:26 > 0:04:32This is an ideal opportunity for the purchaser to store their suitcases, their tools.
0:04:32 > 0:04:35This really is a little bonus room.
0:04:35 > 0:04:37Yeah. Brilliant.
0:04:46 > 0:04:50People are always looking for ingenious ways to store clutter
0:04:50 > 0:04:55and this is a perfect place to store all the bits and pieces that take up precious living space.
0:04:55 > 0:05:00Outside, the garden is pleasant, level and sizeable.
0:05:01 > 0:05:03With a guide price of 65 to 70,000,
0:05:03 > 0:05:08what will a local estate agent think of this two-bed terrace?
0:05:09 > 0:05:13This property really needs everything doing to it.
0:05:13 > 0:05:16It needs timber and damp looking at, the electrics,
0:05:16 > 0:05:20gas central heating, the bathroom needs sorting, it needs a new kitchen,
0:05:20 > 0:05:24so it is a complete refurbishment.
0:05:24 > 0:05:30With so much work to do and an established ceiling price in this area for this type of property,
0:05:30 > 0:05:34how much could someone stand to make once it's renovated?
0:05:34 > 0:05:36I'd have thought we're looking in the region of
0:05:36 > 0:05:41115,000 to £120,000 for the property.
0:05:41 > 0:05:44Could it be a money-spinning rental investment?
0:05:46 > 0:05:52For the rental, we'd be looking in the region of £575 per calendar month
0:05:52 > 0:05:53for the two-bed as it is.
0:05:55 > 0:05:58This house is going to need a serious overhaul.
0:05:58 > 0:06:00It needs everything doing to it.
0:06:00 > 0:06:04To keep budgets low, I'd advise leaving the upstairs as it is
0:06:04 > 0:06:06and fitting a shower room downstairs.
0:06:06 > 0:06:09Spend too much here and you could come unstuck.
0:06:09 > 0:06:14Somebody wanted this. Let's find out who it was as we go to auction.
0:06:16 > 0:06:19A bay-fronted house with vacant possession.
0:06:19 > 0:06:21Start me where you will on that one.
0:06:21 > 0:06:23We have a guide of 65 to 70.
0:06:23 > 0:06:26Give me 65. 65. I'm on the way.
0:06:26 > 0:06:2967, now, I'm looking for. 67, do I see?
0:06:29 > 0:06:3067 at the back.
0:06:30 > 0:06:34Can I say 70? At 70. 72. 74.
0:06:34 > 0:06:3576? 76.
0:06:35 > 0:06:3778. Put it up to 80.
0:06:37 > 0:06:41Nobody else coming in? £80,000 to the maiden bidder.
0:06:41 > 0:06:44With you at £80,000. 81. Thank you, Will. 82.
0:06:44 > 0:06:4783. 84.
0:06:47 > 0:06:49£85,000. £86,000.
0:06:49 > 0:06:52£87,000 bid I've got.
0:06:52 > 0:06:5488. So it's against you still.
0:06:54 > 0:06:5588.
0:06:55 > 0:06:58Tell you what I'll do. First and only time. I'll take 87,500.
0:06:58 > 0:07:0287,500 I've got. 88, it's against you, Will.
0:07:02 > 0:07:0688? At 87,500 then, for the first time.
0:07:06 > 0:07:0887,500 for the second time.
0:07:08 > 0:07:13Third and final time. Definitely done? All out. Selling at 87,500. All done.
0:07:13 > 0:07:16That was a good £500, was it not?
0:07:16 > 0:07:1887,500.
0:07:18 > 0:07:23That successful bid of £87,500 was placed by Romanian-born Val,
0:07:23 > 0:07:25and his business partner, Daniel.
0:07:25 > 0:07:28They run their own building company based in London,
0:07:28 > 0:07:30doing contract work for others.
0:07:30 > 0:07:35But this is the first time they've ventured into buying property for themselves.
0:07:35 > 0:07:40Whilst Daniel was digging around inside, I chatted to Val in the garden.
0:07:40 > 0:07:42- Congratulations. - Thank you.- Well done.
0:07:42 > 0:07:47- Thank you.- I'm going to be nosey. Tell me about yourself. What's your background?
0:07:47 > 0:07:52Well, my father was a handyman, and ever since I was a child,
0:07:52 > 0:07:57he took me here and there to mend things around neighbours' houses.
0:07:57 > 0:08:02But I graduated in economics and building was not what I'd planned for my life!
0:08:02 > 0:08:09But in 2002 when I came to Britain, I set up a small business
0:08:09 > 0:08:11and I thought I'd try building.
0:08:11 > 0:08:13And since then, I've done it!
0:08:21 > 0:08:24Val may be unexpectedly following in his father's footsteps,
0:08:24 > 0:08:28but judging by the smart areas in which he usually does refurbishments,
0:08:28 > 0:08:31something tells me he's more than just a DIY handyman!
0:08:31 > 0:08:35What sort of properties are you used to working on, and in what areas?
0:08:35 > 0:08:40My speciality is refurbishments in Kensington and Chelsea in London.
0:08:40 > 0:08:44What sort of things are you used to doing on the properties you work on?
0:08:44 > 0:08:48- Right.- Are we talking sunken baths, beautiful granite worktops?
0:08:48 > 0:08:51Oh, yes. Basically, I'm covering all the trades
0:08:51 > 0:08:59from basic structural building up to design and bespoke bathrooms, kitchens,
0:08:59 > 0:09:01living rooms and furniture.
0:09:01 > 0:09:04Let's talk about what you're going to be doing in here.
0:09:04 > 0:09:09Obviously you're not going to take it to the max, working on this house, are you?
0:09:09 > 0:09:14That would be crazy! It's a bit of a change for me.
0:09:14 > 0:09:20To be honest, we're not exactly sure what exactly we're going to do with it.
0:09:20 > 0:09:24We're thinking to obviously modernise
0:09:24 > 0:09:27and adding one or two bedrooms and extending the kitchen.
0:09:27 > 0:09:32The good thing, the thing that made me buy this property was I found a nice cellar.
0:09:32 > 0:09:37I was thinking maybe to put a nice kitchen in there,
0:09:37 > 0:09:39into the basement.
0:09:39 > 0:09:42How are you going to rework the space upstairs?
0:09:42 > 0:09:48- The big downside to this property is the one bathroom and it's leading off the main bedroom.- Yes.
0:09:48 > 0:09:54What we are planning to do is change the layout of the staircase.
0:09:54 > 0:09:57To have everything on the right hand and free up as much as possible
0:09:57 > 0:10:01the space for the additional bedroom we want to do.
0:10:01 > 0:10:05So I think the key of this project is to change the staircase layout
0:10:05 > 0:10:07because it goes through the middle of the house.
0:10:07 > 0:10:13- You're going to add a bedroom upstairs?- We plan to raise the roof if we're allowed to.
0:10:13 > 0:10:18And to create another bedroom upstairs with a shower room.
0:10:18 > 0:10:22- Wow, Val, you are really going for it!- Yes, I do!
0:10:22 > 0:10:26Val and business partner Daniel have a budget of 20,000
0:10:26 > 0:10:29and hope to complete all the work in just three months.
0:10:29 > 0:10:35I was keen to know whether Daniel was as keen to do such radical things as Val seems to be!
0:10:35 > 0:10:39My part on this business is to make sure everything is done properly
0:10:39 > 0:10:41and maybe on time.
0:10:41 > 0:10:47That's interesting, because I know Val wants to turn this place into a palace, doesn't he?
0:10:47 > 0:10:50He has really got some grand plans for this place.
0:10:50 > 0:10:53He wants a kitchen underneath, a bedroom in the top.
0:10:53 > 0:10:58I'm a bit worried he might be doing too much to this property
0:10:58 > 0:11:00and you'll be the man to keep him in tow.
0:11:00 > 0:11:02Yes. Well...
0:11:02 > 0:11:04It's good because we've got so many options.
0:11:04 > 0:11:08But after the architects come and see the place,
0:11:08 > 0:11:13we'll decide exactly which option we'll choose at the end.
0:11:13 > 0:11:16- Are you both excited about this property venture?- Yes,
0:11:16 > 0:11:19because it's a new challenge, actually, for us.
0:11:19 > 0:11:24We did so many projects in the centre of London, but this is something different.
0:11:24 > 0:11:28Trying to do something great with a small budget.
0:11:28 > 0:11:31They'll certainly have their hands full with this property.
0:11:31 > 0:11:33But it doesn't stop here.
0:11:33 > 0:11:37These guys have their sights set high and Val has a burning ambition.
0:11:37 > 0:11:41So, Val, what is the future plan?
0:11:41 > 0:11:45My target is within two years to be able to do a one-million pound property.
0:11:45 > 0:11:49- What sort of areas do you want to target in future? - London, definitely.
0:11:49 > 0:11:53- Working your way back to Kensington and Chelsea?- Absolutely.
0:11:57 > 0:12:00I admire the guys' spirit and determination.
0:12:00 > 0:12:03But I'm a little worried about their plans.
0:12:03 > 0:12:06A kitchen in the cellar? I'm not so sure.
0:12:06 > 0:12:09Their plans may be too ambitious for such a modest house.
0:12:09 > 0:12:12Find out how they get on later on in the programme.
0:12:16 > 0:12:22Today, I'm in Derby in the Midlands. There's a magnificent cathedral,
0:12:22 > 0:12:27restaurants, bars, a massive shopping centre and superb transport links.
0:12:27 > 0:12:32Derby is definitely a modern, cosmopolitan and developing city with plenty to offer.
0:12:32 > 0:12:37Not far from Derby city centre is a small housing development of Derwent Heights.
0:12:37 > 0:12:42I say small, certainly in comparison to the large Oakwood estate nearby.
0:12:42 > 0:12:46Property here a little bit cheaper, for instance the property I'm here to see.
0:12:46 > 0:12:50A two-bed town house at a guide price of 68,000 quid.
0:12:50 > 0:12:54As an added bonus, you get your fair share of bins!
0:12:54 > 0:12:56# Take out the papers and the trash! #
0:13:00 > 0:13:05Yes, the bin thing is slightly curious and a design fault when these were built.
0:13:05 > 0:13:10There's very little room around the back, and what access there is seems to be overgrown.
0:13:10 > 0:13:15But leaving the multi-coloured wheelie-bins outside, what's inside?
0:13:17 > 0:13:19So, what's on offer? Let's take a look.
0:13:19 > 0:13:23Through the front door. Very small kitchen.
0:13:23 > 0:13:26Blimey, that's not one for entertaining in, is it?
0:13:26 > 0:13:30Need to sort those units out. Definitely tired and dated. What's this?
0:13:30 > 0:13:34A little downstairs loo. That's always nice to have.
0:13:34 > 0:13:36That's a cupboard there.
0:13:36 > 0:13:39Then through to your main room downstairs, the living room.
0:13:39 > 0:13:42Nice views out there. It's not a bad-sized space.
0:13:42 > 0:13:46At the end of the day, it's a small modern house
0:13:46 > 0:13:47and this is what you get.
0:13:56 > 0:13:59Well, it's compact and bijou, but in pretty good condition.
0:13:59 > 0:14:05It won't take much to turn this place around and ramp up its earning potential.
0:14:06 > 0:14:10Upstairs, a reasonable-sized bedroom to the front of the property.
0:14:10 > 0:14:15You've got your bathroom and loo up here. Avocado suite. Could have predicted that.
0:14:15 > 0:14:20Not in that bad a condition but you'd want to put a white one in to modernise the place.
0:14:20 > 0:14:28The rear bedroom. Again, it's a modern house. Unfortunately, not exactly huge.
0:14:28 > 0:14:31But then again, think of the guide price.
0:14:31 > 0:14:34Perfect for purpose.
0:14:34 > 0:14:38One thing you can't argue about is the views over the allotments.
0:14:39 > 0:14:43You can see not only the allotments, but Derby just a mile away.
0:14:43 > 0:14:47You can also see the £68,000 guide price
0:14:47 > 0:14:50offered a tempting starter home in good condition.
0:14:50 > 0:14:55But if its guide price wasn't too steep, the same can't be said about the garden!
0:14:55 > 0:14:58At the rear of the property is a smallish garden.
0:14:58 > 0:15:03An interesting lawn with this fairly steep bank. Need a special lawn mower for that!
0:15:03 > 0:15:08But there is also at the very rear of the garden this overgrown area.
0:15:08 > 0:15:12This is a right of access and whenever I see something like this,
0:15:12 > 0:15:16it makes me think I've doubly got to read that legal pack
0:15:16 > 0:15:18to make sure what the legal status is.
0:15:18 > 0:15:21Are you responsible for it? Can anyone use it? You don't know
0:15:21 > 0:15:24until you've checked it out, or your solicitor has.
0:15:24 > 0:15:26# Take a walk on the wild side
0:15:26 > 0:15:28# Said, Hey, honey,
0:15:28 > 0:15:31# Take a walk on the wild side. #
0:15:31 > 0:15:35So, not only is it currently a bit of a walk on the wild side,
0:15:35 > 0:15:39potentially there could be a legal tangle on land ownership.
0:15:39 > 0:15:41Definitely something to be wary of.
0:15:41 > 0:15:46That aside, the other issues that concern me here are that the windows are single-glazed
0:15:46 > 0:15:49and the heating is vast storage heaters.
0:15:49 > 0:15:51On the plus side, this is a quiet neighbourhood
0:15:51 > 0:15:54and the house comes with its own parking space.
0:15:54 > 0:15:57So how much overall appeal does it have?
0:15:57 > 0:16:01We asked a local property expert for his opinion.
0:16:01 > 0:16:05The property is very much in demand from a rental point of view.
0:16:05 > 0:16:08It would rent overnight to a young person.
0:16:08 > 0:16:10From a sale point of view,
0:16:10 > 0:16:15the property would sell to a first-time buyer or a buy-to-let investor.
0:16:15 > 0:16:18What level of rental values could this property attract?
0:16:18 > 0:16:22The rental market in this area is very strong at the moment.
0:16:22 > 0:16:25I'd expect to get around £500 per calendar month.
0:16:25 > 0:16:29Not bad. What's it worth if you were to sell it on?
0:16:29 > 0:16:32If you were to refurbish the property
0:16:32 > 0:16:35you'd ask between 90 and £95,000.
0:16:35 > 0:16:38So, all in all, a pretty decent little property.
0:16:38 > 0:16:42Yes, it could benefit from a new kitchen and bathroom and a lick of paint.
0:16:42 > 0:16:48But what you've got here is a really good first-time buyer's house or a potential rental unit.
0:16:48 > 0:16:51Let's see who fancied it when it went under the hammer.
0:16:53 > 0:16:56We go over the page to Lot 11.
0:16:56 > 0:17:00It's a two-bed town house, nicely located, with car parking.
0:17:00 > 0:17:03Outside the front, allocated parking.
0:17:03 > 0:17:06Again, it's very good investment material.
0:17:06 > 0:17:07Start me on this at 72?
0:17:07 > 0:17:0972?
0:17:09 > 0:17:1170,000. Don't miss a bargain.
0:17:11 > 0:17:1368?
0:17:13 > 0:17:1768. On the guide price. £68,000 on the left. Thank you.
0:17:17 > 0:17:19At £68,000 opening bid.
0:17:19 > 0:17:2068,000.
0:17:20 > 0:17:2269, quickly. 69,000.
0:17:22 > 0:17:25At 69,000. 70 over there.
0:17:25 > 0:17:29At £70,000. I'll take 500 if it'll help you.
0:17:29 > 0:17:31At 70,500. 500.
0:17:31 > 0:17:3470 and a half. 71 is bid.
0:17:34 > 0:17:37At 71. 500.
0:17:37 > 0:17:3971,500. 72?
0:17:39 > 0:17:4172 is bid. Thank you. At 72.
0:17:41 > 0:17:45500. 72,500. 73? Try another one?
0:17:45 > 0:17:47At 73.
0:17:47 > 0:17:49At 73,500?
0:17:49 > 0:17:52£73,000. Seated bid here.
0:17:52 > 0:17:55We're selling it. It's in the market, ladies and gentlemen.
0:17:55 > 0:17:57At £73,000. All done?
0:17:57 > 0:17:59Going once.
0:17:59 > 0:18:01Going twice. Third time.
0:18:01 > 0:18:04Sold at 73,000. Thank you.
0:18:04 > 0:18:09So, for 73,000 the successful bidders for the two-bed house in Derby
0:18:09 > 0:18:11were local men Steve and Andy.
0:18:11 > 0:18:18They're both electricians, looking at property refurbishment as a way of earning extra money between jobs.
0:18:19 > 0:18:22Andy, Steve. Lovely to meet you.
0:18:22 > 0:18:23Congratulations.
0:18:23 > 0:18:26Tell me why you wanted to buy this place.
0:18:26 > 0:18:32Steve and I were looking for a property that we could renovate or add some value to,
0:18:32 > 0:18:34to make some money. Simple as that.
0:18:34 > 0:18:39- Is it something you've done before? - We have done one property together before, yes.
0:18:39 > 0:18:43- How did the relationship between you start?- Basically, we're both electricians.
0:18:43 > 0:18:49We met during a college course. So we started working together as electricians.
0:18:49 > 0:18:50Then as things progressed,
0:18:50 > 0:18:57we've both got properties anyway that we let out so we decided to start refurbishing.
0:18:57 > 0:18:59The move into property development
0:18:59 > 0:19:03was prompted by a downturn in the amount of electrical work they were getting.
0:19:03 > 0:19:06Andy and Steve were looking for other income streams
0:19:06 > 0:19:12and with their knowledge and contacts, a move into house refurbishment was an obvious step.
0:19:12 > 0:19:16But their first development property didn't quite go to plan.
0:19:16 > 0:19:21At the time we bought it, we bought it because we didn't have a lot of electrical work.
0:19:21 > 0:19:24Then we got floods of it. Loads of it.
0:19:24 > 0:19:27So we stopped that and the house was empty for quite a while.
0:19:27 > 0:19:31- We couldn't do it cos of the electrical work.- How ironic!
0:19:31 > 0:19:34- Yes!- You could have employed somebody else.- Well,
0:19:34 > 0:19:37we did think of that, but we wanted to do it all ourselves.
0:19:37 > 0:19:39How much of a delay did that cause?
0:19:39 > 0:19:43It took a year to do this property. There was a lot to do.
0:19:43 > 0:19:46It was totally different to this particular project.
0:19:46 > 0:19:48But it did take a year to do.
0:19:48 > 0:19:53So they hardly raced through that first refurbishment.
0:19:53 > 0:19:56But they hope this will be much more straightforward.
0:19:56 > 0:20:00With the clock ticking, how are they going to make this a hot property?
0:20:00 > 0:20:05The main thing is this house is structurally sound but it's dated.
0:20:05 > 0:20:08It needs some tender loving care and attention.
0:20:08 > 0:20:12The kitchen we plan to re-do completely.
0:20:12 > 0:20:16- Similarly with the bathroom.- We're not sure about the windows yet.
0:20:16 > 0:20:20It all goes on budget and what prices we get in.
0:20:20 > 0:20:24- You're thinking about double-glazing?- Right.- Yes.
0:20:24 > 0:20:28Being electricians, the lighting. That's a key element.
0:20:28 > 0:20:33It makes a huge difference, we find, if you change the lighting.
0:20:33 > 0:20:37It illuminates the room better and catches people's eye with the right fittings.
0:20:37 > 0:20:39So we'll change those as well.
0:20:39 > 0:20:46- Budget for doing what you're going to do?- Well, we'll say about five to £6,000.
0:20:46 > 0:20:48- Something of that mark.- Wow.
0:20:49 > 0:20:54To keep to that five to £6,000 budget, they'll need to do most of the work themselves.
0:20:54 > 0:20:57I hope that with all their plans to brighten up the house,
0:20:57 > 0:21:00they don't lose track of the time to turn it round.
0:21:00 > 0:21:03# Blinded by the light. #
0:21:03 > 0:21:05Timescale for doing the work?
0:21:05 > 0:21:07- About a month? - We're looking at a month.- Wow.
0:21:07 > 0:21:09The last one took a year!
0:21:09 > 0:21:12- Yes...- That's where we made the mistakes.
0:21:12 > 0:21:16This time, the kitchen and things, they'll be done straightaway.
0:21:16 > 0:21:20It's about managing our time. That's one mistake we learnt.
0:21:20 > 0:21:23If we can manage our time better and block some time out to do this,
0:21:23 > 0:21:27and push the electrical work back, is the way to do it.
0:21:27 > 0:21:33- After this, what's the plans for the future?- We've already bought another one!
0:21:33 > 0:21:35You have?! Blimey!
0:21:35 > 0:21:40I think our plan at the moment is we'll continue rolling through,
0:21:40 > 0:21:43- doing this type of work.- This one, the plan is to sell it?
0:21:43 > 0:21:47- Preferably.- Yes, but if the worst comes to the worst,
0:21:47 > 0:21:50then we'll probably rent it for a bit.
0:21:50 > 0:21:53- Good luck with it!- Thank you. - Very nice to meet you both.
0:21:53 > 0:21:55You, too.
0:21:55 > 0:22:00Fingers crossed that electricians Steve and Andy can resist the temptation to do work for others
0:22:00 > 0:22:04and can conduct the rapid refurbishment they plan.
0:22:04 > 0:22:08Andy and Steve have certainly got the experience to sort this place out.
0:22:08 > 0:22:12As they correctly recognise, it's all about managing your time.
0:22:12 > 0:22:16So will they manage to do this place in just one month?
0:22:16 > 0:22:18Find out later in the show.
0:22:19 > 0:22:25Coming up: will a flat in this period property in Oxfordshire live up to its looks?
0:22:25 > 0:22:28I love the price and I am very taken with this facade.
0:22:29 > 0:22:35Things are looking brighter for this Derby house, once Steve and Andy get some family help.
0:22:35 > 0:22:39It helps a lot to have people you know and trust to support you.
0:22:40 > 0:22:46But first, were the plans for this modest terraced house right for the area?
0:22:46 > 0:22:49We wanted to make something different.
0:22:51 > 0:22:57It was in Chatham, Kent, that I came across a run-down two-bed terraced house
0:22:57 > 0:22:59guided at 65 to 70,000.
0:22:59 > 0:23:03At first glance, it was a run-of-the-mill development proposition.
0:23:03 > 0:23:07But on closer inspection, the layout was not ideal.
0:23:07 > 0:23:10There were unused spaces in the basement and attic.
0:23:10 > 0:23:15The kitchen was cramped and you had to go through a bedroom to get to the main bathroom.
0:23:15 > 0:23:20So depending on your point of view, you could say this property had problems or potential.
0:23:20 > 0:23:24Business partners Val and Daniel, who run their own building company,
0:23:24 > 0:23:28bought it for 87,500. This was their first attempt at development,
0:23:28 > 0:23:32but with most of their work usually being high-end refurbishments in London,
0:23:32 > 0:23:36they were used to thinking big. So buying and renovating this terrace
0:23:36 > 0:23:38was a step into a very new market.
0:23:46 > 0:23:48What are you going to do here?
0:23:48 > 0:23:53Obviously you're not going to take it to the max, working on this house?
0:23:53 > 0:24:00That would be crazy! We're thinking to modernise it and extend maybe the kitchen.
0:24:00 > 0:24:03To raise the roof, if we're allowed to.
0:24:03 > 0:24:08And to create maybe another bedroom upstairs with a shower room.
0:24:08 > 0:24:12And I was thinking maybe to put a nice kitchen in the basement.
0:24:12 > 0:24:16- Wow, Val, you are really going for it!- Yes, I do!
0:24:21 > 0:24:25So, ten months later, have all those ambitious plans been fulfilled?
0:24:27 > 0:24:31Well, from the outside, there's no evidence of change.
0:24:31 > 0:24:36It was a very, very tiny two-bedroomed house
0:24:36 > 0:24:39in a very poor state with no central heating.
0:24:39 > 0:24:41The rooms were miniscule.
0:24:41 > 0:24:45But have Chatham streets now got London chic?
0:24:48 > 0:24:53Well, inside, the two reception rooms are certainly not dark and small any more.
0:24:54 > 0:24:59Here, initially we had the living room and dining room.
0:24:59 > 0:25:01They were tiny so we knocked down the wall
0:25:01 > 0:25:04to create one large living room.
0:25:04 > 0:25:08Then, where we initially had the kitchen, we moved the entry door
0:25:08 > 0:25:11and extended by two and half metres
0:25:11 > 0:25:15to create a nice open plan dining area and kitchen area.
0:25:15 > 0:25:21So Val had dropped one of his ambitious plans to put the kitchen in the cellar.
0:25:21 > 0:25:24That's now just being used as a storage area.
0:25:25 > 0:25:29But the kitchen's been extended and there are further alterations upstairs.
0:25:31 > 0:25:34As I'm walking here, there was nothing.
0:25:34 > 0:25:39The staircase initially was right here. So we pushed the staircase to the right of the building
0:25:39 > 0:25:44to create a much larger space for the bedrooms and the main bathroom.
0:25:44 > 0:25:50I think this layout now works perfectly. It creates the maximum space with the minimum hassle.
0:25:54 > 0:25:59Turning the stairs not only allows Val to open up the space leading into the bedrooms,
0:25:59 > 0:26:04but there's also now no need to troop through the main bedroom to get to the bathroom.
0:26:09 > 0:26:11It's now accessible from the main corridor.
0:26:13 > 0:26:17Val's in the middle of a luxurious refit, but his ambitions are sky-high.
0:26:17 > 0:26:21So he didn't stop there. He added another floor!
0:26:21 > 0:26:25Basically, we raised the pitched roof into the loft
0:26:25 > 0:26:31and created a master bedroom with an en-suite shower, toilet and sink.
0:26:36 > 0:26:39Crikey, it really does look like the guys have gone for it!
0:26:39 > 0:26:43They've turned this small, two-bed, two reception-roomed house
0:26:43 > 0:26:46into a three-storey, three-bedroomed one
0:26:46 > 0:26:50with an open plan living area and what will be a contemporary kitchen.
0:26:50 > 0:26:52And although it's ten months since I was here,
0:26:52 > 0:26:56they've actually only been working on it for two months.
0:26:56 > 0:26:59So what they've achieved here is even more remarkable.
0:27:01 > 0:27:03We wanted to make something different.
0:27:03 > 0:27:08You can achieve with what is a fairly modest budget
0:27:08 > 0:27:10quite a good finish.
0:27:10 > 0:27:13But what does Val consider a reasonable budget?
0:27:13 > 0:27:16They originally planned to spend 20,000 here.
0:27:17 > 0:27:19In most of the projects that I've done,
0:27:19 > 0:27:22the initial budget, almost every time, it doubles up.
0:27:22 > 0:27:26So we reckon we are close to £40,000 here.
0:27:26 > 0:27:28But, hand on heart, I have no regrets.
0:27:28 > 0:27:32He may have no regrets, but they may have no profit.
0:27:32 > 0:27:36With their total outlay now in the region of 130,000,
0:27:36 > 0:27:38they're not quite finished yet.
0:27:38 > 0:27:41So did they get this development right?
0:27:41 > 0:27:44Was it just one or maybe two steps too far?
0:27:44 > 0:27:47What do two local estate agents think?
0:27:47 > 0:27:52Coming to this for the second time, I cannot believe what they've done. It's amazing!
0:27:52 > 0:27:54They have literally extended everywhere.
0:27:54 > 0:27:59Out the back, into the loft, you name it, they've extended it.
0:27:59 > 0:28:03To be honest, for the area, they've extended it too much.
0:28:07 > 0:28:10I really like the space and the layout of this property
0:28:10 > 0:28:15and what they've achieved, but I feel they should have just done the loft conversion
0:28:15 > 0:28:17or the extension. One or the other.
0:28:17 > 0:28:21If we could pick this property up and move it to a different area,
0:28:21 > 0:28:24you would achieve a good figure for this property.
0:28:24 > 0:28:26But I do feel it has been over-developed.
0:28:26 > 0:28:29Val and his business partner are determined to sell.
0:28:29 > 0:28:32They want the capital to move on to their next project.
0:28:32 > 0:28:36But could such a comprehensive refurbishment pay dividends
0:28:36 > 0:28:37on the rental market?
0:28:37 > 0:28:41The sort of rental I think we'll achieve on it
0:28:41 > 0:28:44is going to be in the region of £695 per calendar month,
0:28:44 > 0:28:47which is more than this area would normally achieve.
0:28:47 > 0:28:50The rental market is very buoyant at the moment,
0:28:50 > 0:28:54so we would look to put this property on at £700 per calendar month.
0:28:54 > 0:29:00That's not bad, actually. If we'd built it for renting,
0:29:00 > 0:29:02I'd be really happy with this.
0:29:02 > 0:29:07700 a month on a 130,000 investment could earn a very reasonable
0:29:07 > 0:29:08six per cent yield.
0:29:08 > 0:29:12But for Val, it's all about resale.
0:29:12 > 0:29:14The guide price I would suggest
0:29:14 > 0:29:20would probably be somewhere round about £130,000 to £140,000.
0:29:20 > 0:29:27We would put this on the resale market for approximately 135 to £145,000.
0:29:27 > 0:29:30I would have expected 150 to 160.
0:29:30 > 0:29:35But it's the first project that we did and we didn't expect to make a profit.
0:29:35 > 0:29:39So we are, say, reasonably happy.
0:29:39 > 0:29:42Despite perhaps going a little over the top here,
0:29:42 > 0:29:44they may actually end up with a small profit
0:29:44 > 0:29:47or come out even at least.
0:29:47 > 0:29:50So, spirits are presumably quite high.
0:29:50 > 0:29:53It's been a learning curve and a pleasant one.
0:29:53 > 0:29:55Hard, but fun in the end!
0:29:56 > 0:30:00Val's ambition is to work on a million-pound project of his own.
0:30:00 > 0:30:04So who knows, maybe this small house will be the start of something big!
0:30:15 > 0:30:19This isn't today's auction lot, I'm afraid, viewers,
0:30:19 > 0:30:21it's Broughton Castle in Oxfordshire.
0:30:21 > 0:30:24It's only a few miles from today's property.
0:30:24 > 0:30:28It was built in the 14th century and enlarged 200 years later.
0:30:28 > 0:30:32It's been owned by the same family for over 600 years.
0:30:32 > 0:30:36It's been described as "the most romantic house imaginable".
0:30:36 > 0:30:40Oh, I have certainly fallen for its charms!
0:30:40 > 0:30:43The castle has played leading roles in many films
0:30:43 > 0:30:48including The Madness of King George and Shakespeare in Love.
0:30:48 > 0:30:52Now it can add Homes Under The Hammer to its starry list!
0:30:58 > 0:31:01Just three miles away from Broughton Castle
0:31:01 > 0:31:03is the auction lot I'm here to see
0:31:03 > 0:31:05in the pretty village of Bodicote,
0:31:05 > 0:31:09a traditional village on the outskirts of the small town of Banbury,
0:31:09 > 0:31:12within easy commuting distance of Oxford.
0:31:12 > 0:31:15Today's property is a ground floor flat
0:31:15 > 0:31:18in what was once a large Victorian country house.
0:31:20 > 0:31:23The guide was set at just £40,000.
0:31:23 > 0:31:26I love the price and I am very taken with this facade.
0:31:26 > 0:31:28Let's see what it's like inside.
0:31:36 > 0:31:40It might not be a castle, but I'm loving what I see.
0:31:40 > 0:31:43The house was converted into flats some time ago
0:31:43 > 0:31:45but is still a beautiful Victorian building
0:31:45 > 0:31:49with wonderful timberwork and period windows.
0:31:49 > 0:31:54To get a one-bed flat here with a guide price of just £40,000, well, that's exciting!
0:31:54 > 0:31:56Oh, no!
0:31:56 > 0:31:58Such a disappointment!
0:31:58 > 0:32:02There is not a stitch of character on the inside
0:32:02 > 0:32:04and it's in a right old state.
0:32:04 > 0:32:09There's no floors, there's lots of wet damp patches everywhere.
0:32:09 > 0:32:12It's clear this place needs a complete overhaul.
0:32:12 > 0:32:16It's not as small as I'd thought, so a bit of space to play with.
0:32:16 > 0:32:20You've got a kitchen through here. Again, the size is quite good.
0:32:20 > 0:32:24You could think about knocking this through to open it up.
0:32:24 > 0:32:28Cooker - that's seen better days. Look at the state of that!
0:32:28 > 0:32:29Yuk!
0:32:29 > 0:32:34And the one nice thing about this property is you have a great view of the garden and beyond.
0:32:34 > 0:32:37But look - obscured glass!
0:32:37 > 0:32:39Doesn't really make sense!
0:32:40 > 0:32:44# You've lost that lovin' feeling. #
0:32:44 > 0:32:48It's not just the waste of a good window in the kitchen
0:32:48 > 0:32:50which means my love for this place is a little faded.
0:32:50 > 0:32:54The living room and bedroom look the worse for wear.
0:32:54 > 0:32:57It's only the bathroom that retains a little sparkle,
0:32:57 > 0:32:59and that's on account of the fairy lights!
0:32:59 > 0:33:02Overall, the interior is a big let-down.
0:33:02 > 0:33:05That's not the only reason this flat is hard to love.
0:33:05 > 0:33:07More bad news, I'm afraid.
0:33:07 > 0:33:10This property is unmortgageable
0:33:10 > 0:33:12due to a short lease of only 66 years.
0:33:12 > 0:33:16You can't extend the lease until you've owned the property for two years.
0:33:16 > 0:33:21Working out how much your lease extension will cost is tricky
0:33:21 > 0:33:24and you'll no doubt require a surveyor's valuation.
0:33:24 > 0:33:27It's almost impossible to work out a fixed price.
0:33:27 > 0:33:31So most surveyors will give you a high and a low price.
0:33:31 > 0:33:34The final figure should be somewhere in-between.
0:33:34 > 0:33:38You'd also have to pay all the solicitors' and surveyors' fees
0:33:38 > 0:33:40for both yourself and the freeholder.
0:33:40 > 0:33:43So it can work out quite expensive.
0:33:43 > 0:33:48Hmm. Add to that a whopping service charge of £2,700 a year
0:33:48 > 0:33:51and the cost of owning this place is starting to add up.
0:33:51 > 0:33:55But step outside and you can see once again
0:33:55 > 0:33:57why it might just all be worth it.
0:33:58 > 0:34:02You wouldn't think it from in there, but this is an Arts and Crafts house.
0:34:02 > 0:34:04I live in one myself and I love the design,
0:34:04 > 0:34:07so I am well-placed to wax lyrical about it!
0:34:07 > 0:34:10The Arts and Crafts movement was made up of English designers
0:34:10 > 0:34:13who wanted to return to well-made hand-crafted goods
0:34:13 > 0:34:18instead of mass-produced poor quality machine-made items.
0:34:18 > 0:34:22I think it would be great to inject some of that era and that character
0:34:22 > 0:34:24back into that little flat.
0:34:26 > 0:34:30# Bring back that lovin' feeling... #
0:34:32 > 0:34:37So if you could bring back that loving feeling to the flat,
0:34:37 > 0:34:39could it be turned into a good investment?
0:34:39 > 0:34:42What does a local estate agent think?
0:34:44 > 0:34:46It's a nice apartment, of a good size.
0:34:46 > 0:34:48Obviously needs work on it.
0:34:48 > 0:34:50But some of the basics in here
0:34:50 > 0:34:53are OK as they are, so it's a lot of cosmetics, really.
0:34:53 > 0:34:57A nice location, and Bodicote itself is popular.
0:34:57 > 0:35:00This property also benefits from outside space
0:35:00 > 0:35:02which will no doubt attract people.
0:35:02 > 0:35:06But then there are the high service charges and short lease.
0:35:08 > 0:35:1166 years on a lease is quite short.
0:35:11 > 0:35:16It might be an issue if a first-time buyer were coming to look with a lender.
0:35:16 > 0:35:19They tend to want longer on the lease, so that may be a problem.
0:35:19 > 0:35:24But if you have an investor buying with cash, it won't be an issue to them.
0:35:24 > 0:35:27How much could someone make here once the work's done?
0:35:27 > 0:35:31For a rental valuation, I'd say you'd easily achieve
0:35:31 > 0:35:35between £500 per calendar month and £550 per calendar month.
0:35:35 > 0:35:41A sale on this property, I would say you're probably looking between 75 and 90,000
0:35:41 > 0:35:45depending on what's done when the renovations are finished.
0:35:50 > 0:35:55If the short lease doesn't put you off, then the incredibly high service charge might.
0:35:55 > 0:35:57It didn't deter somebody, though.
0:35:57 > 0:36:00Let's find out who wanted this flat as we go to auction.
0:36:00 > 0:36:02The lot came up late in the auction
0:36:02 > 0:36:05but some bidders were determined to stick it out.
0:36:05 > 0:36:09A leasehold ground floor self-contained flat.
0:36:09 > 0:36:13Where do you want to be on this? 35 to start me either in the room or on the phone.
0:36:13 > 0:36:15In the room, thank you, at 35.
0:36:15 > 0:36:1736 now? Is here.
0:36:17 > 0:36:1837?
0:36:18 > 0:36:2137. 38? 38. 39?
0:36:21 > 0:36:2339. And 40?
0:36:23 > 0:36:2640 is here. 41 now?
0:36:26 > 0:36:2841. 42?
0:36:28 > 0:36:3042 is on the phone.
0:36:30 > 0:36:32Thank you. 43, sir? 43.
0:36:32 > 0:36:3644? 44. 45. 46.
0:36:36 > 0:36:41Gentleman at the back of the room buys it at the moment. At £46,000 for the first.
0:36:41 > 0:36:4346,500.
0:36:43 > 0:36:45Seven now?
0:36:45 > 0:36:4847, sir? 47. 47,500?
0:36:48 > 0:36:5147,500. 48 now?
0:36:52 > 0:36:5448. Thank you. 48,500?
0:36:54 > 0:36:5648,500. 49 now?
0:36:57 > 0:36:5949, sir?
0:36:59 > 0:37:0149. Thank you. 49,500?
0:37:01 > 0:37:05Round it off for me at 50, will you?
0:37:05 > 0:37:0850 is now bid.
0:37:08 > 0:37:11500 more? 50,500. 51 now?
0:37:12 > 0:37:15Is that 51 at the back? Thank you very much, sir.
0:37:15 > 0:37:1751 at the back. 51,500?
0:37:18 > 0:37:23At 51 at the back for the first. 51 for the second.
0:37:23 > 0:37:2551,250.
0:37:25 > 0:37:2951,500? 51,500. 750?
0:37:29 > 0:37:3152? 52.
0:37:31 > 0:37:32250?
0:37:32 > 0:37:3452 once.
0:37:34 > 0:37:36Twice. Third. Final time.
0:37:36 > 0:37:39Got it now at the back. 071.
0:37:39 > 0:37:45So, for 52,000, the determined and successful bidders were Keith and Julie.
0:37:45 > 0:37:49Keith is a retired antiques dealer while Julie works in a hospital.
0:37:49 > 0:37:52Currently living over 200 miles away in Dorset,
0:37:52 > 0:37:55they've come to the flat to tell me about their plans for it.
0:37:58 > 0:37:59Guys, congratulations!
0:37:59 > 0:38:03Keith, what's the story behind you wanting to buy this?
0:38:03 > 0:38:08Well, we own next door, which is a holiday cottage,
0:38:08 > 0:38:10and the flat which is behind you.
0:38:10 > 0:38:15Initially, we steered away from it because we were tied up elsewhere,
0:38:15 > 0:38:17but Keith decided that he'd go for it.
0:38:17 > 0:38:19I wasn't best pleased!
0:38:19 > 0:38:24We did have a limit but he didn't stick to that.
0:38:24 > 0:38:26But, you know...
0:38:26 > 0:38:28- Julie, what was the limit?- A-hem!
0:38:28 > 0:38:3146-and-a-half!
0:38:31 > 0:38:33Keith, you're a naughty boy!
0:38:34 > 0:38:35- I normally am!- Yes.
0:38:35 > 0:38:38Why did you go over so much?
0:38:39 > 0:38:46Um, well, I thought this is a once-only opportunity of either doing something or not.
0:38:46 > 0:38:50I think you've been very wise to buy properties almost under one roof.
0:38:50 > 0:38:53- You can keep an eye on them. - Yes, that's very good.
0:38:53 > 0:38:57- Except we live in Dorset!- Which is not very good - it's miles away!
0:38:57 > 0:39:03- But our son lives...- Our son lives down the road.- In the village. He'll keep an eye on it.
0:39:03 > 0:39:08It's certainly handy to have their son around to keep an eye on their properties.
0:39:08 > 0:39:12They can also use their holiday cottage as a base while they do the work.
0:39:12 > 0:39:17But three properties in the same enclave surely means some sizeable service charges.
0:39:18 > 0:39:22How much do you pay in total for the properties you own?
0:39:22 > 0:39:24The holiday cottage is freehold.
0:39:24 > 0:39:29- This is 2,700 and that one is 3,200. - Woo!
0:39:29 > 0:39:34That's such a lot of money before you even start thinking about mortgage repayments.
0:39:34 > 0:39:36- Absolutely.- Yes.
0:39:36 > 0:39:38So they really can't hang about with this one.
0:39:38 > 0:39:42They need to get it earning an income as soon as possible.
0:39:42 > 0:39:44So, what's their plan?
0:39:44 > 0:39:47What are you going to do to turn this place around?
0:39:47 > 0:39:50I'm going to put it over two phases.
0:39:50 > 0:39:53We've already let it. Got a deposit yesterday.
0:39:54 > 0:39:58So I've got to bring it up to a lettable standard,
0:39:58 > 0:40:00albeit basic.
0:40:00 > 0:40:07At a later date we want to put central heating in and anything it needs it will have.
0:40:07 > 0:40:12If we can put some character in it as well. Some oak floorboards in the sitting room.
0:40:12 > 0:40:16- It'll be nice. - How much money have you put aside?
0:40:16 > 0:40:22The first phase, I'm not going to spend any more than £5,000.
0:40:22 > 0:40:24Julie, why are you laughing?
0:40:24 > 0:40:26Oh, I can just see it!
0:40:26 > 0:40:28It's going to be tight.
0:40:29 > 0:40:31Good luck with it. Lovely to meet you both today.
0:40:31 > 0:40:34- Well done.- Thank you. - Thank you very much.
0:40:34 > 0:40:36I really do wish them luck.
0:40:36 > 0:40:39It's not just the distance they live from the flat.
0:40:39 > 0:40:43The flat itself has a long way to go before it's ready for tenants.
0:40:43 > 0:40:48Gripped by auction fever, Keith spent way over his limit.
0:40:48 > 0:40:51Let's hope he's not gripped by renovation fever
0:40:51 > 0:40:53because he's got a lot to do in there.
0:40:53 > 0:40:58He does have Julie to keep him in check and hopefully on budget.
0:40:58 > 0:41:01Find out how they get on later in the programme.
0:41:04 > 0:41:07Did our fearless developers emerge victorious?
0:41:07 > 0:41:09Or did they flounder in the shallow end?
0:41:09 > 0:41:11Let's find out!
0:41:15 > 0:41:20Derwent Heights may sound like a lesser-known novel written by a Bronte sister,
0:41:20 > 0:41:23but in fact it's a suburb of Derby.
0:41:23 > 0:41:27It was here that a pretty decent two-bed terrace came up for auction.
0:41:27 > 0:41:31Despite the outside sporting a plethora of wheelie bins,
0:41:31 > 0:41:33the inside was far from rubbish.
0:41:33 > 0:41:38In fact, the house just needed sprucing up to get it ready for the rental or resale market.
0:41:42 > 0:41:46It was bought for £73,000 by friends Andy and Steve.
0:41:46 > 0:41:51Both are qualified electricians, looking to generate extra income
0:41:51 > 0:41:53through property refurbishment.
0:41:53 > 0:41:58But their previous experience, though successful, had been a little slow.
0:41:58 > 0:42:01We took a year to do the property. There was a lot to do.
0:42:01 > 0:42:05It was totally different to this particular project.
0:42:05 > 0:42:08But it did take a year to do.
0:42:08 > 0:42:10# Slowly but surely
0:42:10 > 0:42:12# I'm gonna wear you down
0:42:12 > 0:42:15# Slowly but surely I'm gonna bring you round. #
0:42:15 > 0:42:19That might not have been the speediest of refurbishments,
0:42:19 > 0:42:21but they did feel they'd learnt a lot from it.
0:42:21 > 0:42:25They hoped to turn this property around in just four weeks
0:42:25 > 0:42:30so, armed with a budget of just £6,000, they cracked on with it.
0:42:34 > 0:42:39We returned two months later. Had they sparked this place back to life?
0:42:39 > 0:42:43Well, the frontage may not be significantly different.
0:42:43 > 0:42:45The wheelie bins are still here,
0:42:45 > 0:42:47but thanks to new double glazing,
0:42:47 > 0:42:51at least the new residents won't hear the lorry on collection day!
0:42:53 > 0:42:57Inside, the decor, carpets and lighting give the place a real lift.
0:42:57 > 0:42:59But instead of installing new central heating,
0:42:59 > 0:43:03Andy and Steve have gone for an interesting alternative.
0:43:03 > 0:43:06In this room, we've replaced the fireplace.
0:43:06 > 0:43:10It's a key feature in the room and I think it works very well.
0:43:10 > 0:43:15We've put new windows and doors in. Cleaned up the decoration and new carpeting.
0:43:15 > 0:43:18The whole thing works well. I'm very pleased.
0:43:20 > 0:43:24That small, poorly-equipped kitchen has now been replaced
0:43:24 > 0:43:27by a modern one with all the appliances.
0:43:27 > 0:43:32We ripped out the kitchen and replaced it with a new kitchen.
0:43:32 > 0:43:36We've put wall units in as well cos we need the cupboard space.
0:43:36 > 0:43:39We've also put a new extractor unit in
0:43:39 > 0:43:44and obviously a new cooker, oven and remote-control plinth heater.
0:43:44 > 0:43:47There was no central heating in the place.
0:43:47 > 0:43:50We've upgraded the lighting to make it better.
0:43:50 > 0:43:52Although not the biggest house in the world,
0:43:52 > 0:43:57Andy and Steve have endeavoured to lift the gloom and lighten the place up.
0:43:57 > 0:44:00So they've made the two bedrooms crisp and clean.
0:44:05 > 0:44:09Gone is the outdated avocado bathroom,
0:44:09 > 0:44:12replaced by a white suite which maximises the feeling of space.
0:44:13 > 0:44:18When we came to this property, it was pretty dingy and tired.
0:44:19 > 0:44:23It generally needed an upgrade and some care and attention.
0:44:23 > 0:44:27I think we've created a property that is warm and friendly
0:44:27 > 0:44:30and a nice place to live for a first-time buyer.
0:44:30 > 0:44:33So it may be mission accomplished in the house,
0:44:33 > 0:44:36but what are the prospects for the garden?
0:44:36 > 0:44:40Well, the hedges. I always felt there was a view there to be had.
0:44:40 > 0:44:43It was rather overgrown and neglected this side, too.
0:44:47 > 0:44:53And we came one day and the allotment association had trimmed the top of it for us.
0:44:53 > 0:44:56So that was a great saving from a time point of view.
0:45:02 > 0:45:06The views from Derwent Heights are one of the attractions of the area.
0:45:06 > 0:45:11Thanks to some local help, Andy and Steve have given this house an outlook
0:45:11 > 0:45:13that's sure to add value.
0:45:13 > 0:45:15How did they divide up the labour?
0:45:15 > 0:45:21I do the kitchen and the bathroom because it's to do with plumbing and things like that.
0:45:21 > 0:45:27That's my side. Andy does the decorating and other things.
0:45:27 > 0:45:30And electrical work. He concentrates on that.
0:45:30 > 0:45:33We have family connections, too, to help with these projects.
0:45:33 > 0:45:39The windows were completed by my daughter's now husband.
0:45:39 > 0:45:42He's actually got his own building business.
0:45:42 > 0:45:48We only used specialist labour for cutting the worktops, which was my nephew,
0:45:48 > 0:45:50so that was a good price, of course!
0:45:50 > 0:45:56So it helps a lot to have people that you know and can trust to support you with things.
0:45:56 > 0:45:58We could perhaps have put the windows in,
0:45:58 > 0:46:02but why do it if somebody's much better and knows what they're doing?
0:46:02 > 0:46:07It might be two months since we were here, but the work was completed in just four weeks.
0:46:07 > 0:46:10Slightly quicker than their first property!
0:46:10 > 0:46:15So they've managed to balance their work as electricians with the time they spent on renovations.
0:46:16 > 0:46:19It was just the Fridays that we'd go off and do the work.
0:46:19 > 0:46:24- Other work.- We've learnt that we can partition work
0:46:24 > 0:46:30and get all jobs done if we do that instead of trying to do bits of jobs all over the place.
0:46:30 > 0:46:33Not only did they stick to their planned timescale for the work,
0:46:33 > 0:46:36but also kept to their £6,000 budget.
0:46:36 > 0:46:40With a purchase price of £73,000 plus costs,
0:46:40 > 0:46:43Andy and Steve's total investment here is around £80,000.
0:46:43 > 0:46:48So, have they put their connections and electrical knowledge to profitable effect?
0:46:48 > 0:46:51We asked two estate agents.
0:46:51 > 0:46:55First impressions are that a good refurbishment has been done here.
0:46:55 > 0:46:58The kitchen and bathroom are very nice.
0:46:58 > 0:47:02They're finished to a good standard to appeal to first-time buyers.
0:47:02 > 0:47:05The property on first impression is very neutral,
0:47:05 > 0:47:08it's easy for somebody to move straight into.
0:47:08 > 0:47:13But the further you look, the more you see that corners have been cut.
0:47:13 > 0:47:16Ideally, the property would have gas central heating.
0:47:16 > 0:47:19That will put some people off. It will still sell,
0:47:19 > 0:47:23but it won't achieve a top price without gas central heating.
0:47:23 > 0:47:25Ideally, Andy and Steve would sell,
0:47:25 > 0:47:30but in the current climate, they may have to consider renting it out for a while.
0:47:31 > 0:47:34The rental market is very strong in this location.
0:47:34 > 0:47:37I would expect it to achieve £500 per calendar month.
0:47:37 > 0:47:43I'd expect to achieve a rental value of up to £425 per calendar month.
0:47:43 > 0:47:48£425 a month would generate a yield of around six per cent, which is very respectable.
0:47:48 > 0:47:51But how does it fare as an investment if they were to sell,
0:47:51 > 0:47:56bearing in mind they have spent around £80,000 buying and renovating it?
0:47:57 > 0:48:02The property should go onto the market with an asking price of £89,950.
0:48:02 > 0:48:05I would hope to market the property at around £90,000.
0:48:05 > 0:48:07I think that's slightly low.
0:48:07 > 0:48:10We'd probably get nearer the 95 mark, I'd hope, but we'll see.
0:48:10 > 0:48:16A 90,000 resale price could see a potential pre-tax profit of £10,000.
0:48:16 > 0:48:19That isn't too shabby for just four weeks' work,
0:48:19 > 0:48:22but with valuations lower than hoped for,
0:48:22 > 0:48:25what do they now intend to do?
0:48:25 > 0:48:29The plan now is to actually put it on the market at the price we would like
0:48:29 > 0:48:31and see what happens.
0:48:31 > 0:48:35If it doesn't sell, we'll turn it into a rental.
0:48:38 > 0:48:44We might just have to wait and see what they finally decide to do with the house.
0:48:44 > 0:48:49But for the two electricians, no doubt whatever route they choose, there'll be a positive outcome.
0:48:56 > 0:49:00In the quiet surroundings of the village of Bodicote, Oxfordshire,
0:49:00 > 0:49:02a one-bed flat went to auction.
0:49:02 > 0:49:08Located in what was a large country manor, from the outside it looked like a potential bargain
0:49:08 > 0:49:11as it had a guide price of just 40,000.
0:49:11 > 0:49:15But step inside and it was disappointing to say the least.
0:49:15 > 0:49:17Not only was it devoid of character,
0:49:17 > 0:49:20it was also in a pretty run-down state.
0:49:20 > 0:49:23As if that wasn't bad enough, it only had a short lease
0:49:23 > 0:49:28and came with a service charge of £2,700 a year.
0:49:28 > 0:49:34But as Dorset-based couple Keith and Julie already owned two other properties in this enclave,
0:49:34 > 0:49:37they decided this might make a good buy-to-let.
0:49:37 > 0:49:40Well, when I say Keith and Julie decided,
0:49:40 > 0:49:42in fact it was really Keith who made the decision!
0:49:49 > 0:49:53Keith decided that he'd go for it. I wasn't best pleased!
0:49:53 > 0:49:57We did have a limit, but he didn't stick to that.
0:49:57 > 0:49:59- What was the limit?- A-hem!
0:49:59 > 0:50:0246-and-a-half!
0:50:02 > 0:50:0652 once, twice, third and final time.
0:50:06 > 0:50:09Got it now. Bidder 071.
0:50:09 > 0:50:11At £52,000.
0:50:11 > 0:50:13So, having paid 52,000,
0:50:13 > 0:50:185,500 over their agreed limit, their budget was now extremely tight.
0:50:18 > 0:50:22They had just five grand to turn this flat around.
0:50:22 > 0:50:26With a tenant already lined up, the clock was ticking
0:50:26 > 0:50:29to get it bringing in an income as soon as possible.
0:50:31 > 0:50:33So, ten weeks later, we're back.
0:50:33 > 0:50:36Have they turned the flat around, ready for their tenant?
0:50:36 > 0:50:42The outside shows signs of new windows and general upgrading.
0:50:42 > 0:50:46But it was the inside that was the real challenge.
0:50:46 > 0:50:48The property was awful when we bought it.
0:50:48 > 0:50:50It was in a filthy state.
0:50:53 > 0:50:55Very run-down. It was unliveable.
0:50:59 > 0:51:02You couldn't see the work for the grime!
0:51:02 > 0:51:03Grubby.
0:51:03 > 0:51:05Tired.
0:51:05 > 0:51:07A bit like me!
0:51:12 > 0:51:15No wonder Keith feels tired
0:51:15 > 0:51:18as he's worked hard to awaken the flat's potential.
0:51:18 > 0:51:21There are new electrics and storage heating throughout.
0:51:21 > 0:51:25The front living room has been redecorated with a laminate floor laid
0:51:25 > 0:51:31and there's been a mixture of elbow grease and refurbishment in the reinvigorated kitchen.
0:51:31 > 0:51:34Fortunately, the kitchen wasn't too bad.
0:51:34 > 0:51:37It was just filthy, absolutely filthy.
0:51:37 > 0:51:40We've had to replace this window. It was obscured glass,
0:51:40 > 0:51:43nuts because the garden's there.
0:51:43 > 0:51:45Keith had to do some plastering.
0:51:45 > 0:51:48I've had to do a lot of cleaning. This was eugh!
0:51:48 > 0:51:53Really grim. We would have liked to have changed the kitchen,
0:51:53 > 0:51:57but the tenant is in such a hurry, we said we'd clean it up as best we can
0:51:57 > 0:52:01and as time and things allow, we will replace it.
0:52:01 > 0:52:04So the kitchen may have only been a temporary makeover,
0:52:04 > 0:52:07but with a budget of just £5,000,
0:52:07 > 0:52:10they had to make the most of what was still serviceable.
0:52:10 > 0:52:12For the rental market, this kitchen is fine.
0:52:12 > 0:52:14As is the bedroom.
0:52:19 > 0:52:23After a splash of attention, the bathroom is back in full working order.
0:52:23 > 0:52:26But as the couple live over 200 miles away in Dorset,
0:52:26 > 0:52:32and there was so much to be done here, this was never going to be an easy refurbishment for them.
0:52:32 > 0:52:37It's been hard work, mainly for Keith because I've had to stay at home doing work.
0:52:37 > 0:52:39Well, she's joined in as well.
0:52:39 > 0:52:42She's been here the last week, cleaning up after me,
0:52:42 > 0:52:45making sure I do the right things.
0:52:45 > 0:52:48He's done well. He knows he's done well.
0:52:48 > 0:52:52He's pleased with it. I'm pleased with it. But I'm pleased to have my husband back!
0:52:57 > 0:53:02With the flat just about finished, Julie should get to have Keith back in Dorset.
0:53:02 > 0:53:08Although they're both pleased with the results, it's not they who are going to live here.
0:53:08 > 0:53:11We had the tenant round yesterday.
0:53:11 > 0:53:14She's absolutely delighted.
0:53:14 > 0:53:17We have done it to her specifications, really.
0:53:17 > 0:53:19White, magnolia, solid floors.
0:53:19 > 0:53:22So I'm pleased she's pleased!
0:53:23 > 0:53:25So, one happy tenant.
0:53:25 > 0:53:26But at what cost?
0:53:28 > 0:53:33It's just about 5,500, including materials.
0:53:33 > 0:53:36Not counting my time in any way, of course!
0:53:37 > 0:53:42Well, a £5,500 budget, added to their £52,000 purchase price
0:53:42 > 0:53:47takes their current outlay to about £57,500.
0:53:47 > 0:53:52But this flat also came with a £2,700 yearly service charge.
0:53:52 > 0:53:55What's more, the flat has a short lease
0:53:55 > 0:53:58and they've yet to find out how much it'll cost to extend.
0:54:00 > 0:54:02So the bills are adding up.
0:54:02 > 0:54:05Has this been a slightly rash purchase on Keith's part,
0:54:05 > 0:54:08or has he made a good decision?
0:54:08 > 0:54:10What do two local estate agents think?
0:54:14 > 0:54:16The property today looks very good.
0:54:16 > 0:54:21It's very neutral, so ideal for rental markets or sale markets.
0:54:21 > 0:54:23They've done well, what they've done.
0:54:23 > 0:54:28The main thing is it is quite spacious compared with some other one-beds you see around.
0:54:28 > 0:54:32We've got a separate lounge and separate kitchen/diner, which is spacious.
0:54:37 > 0:54:43First impressions are that it's small but fairly well renovated.
0:54:43 > 0:54:46Its main attribute is the view over the garden.
0:54:46 > 0:54:49I think the lease is a problem, the length of the lease.
0:54:49 > 0:54:51That will need to be increased.
0:54:51 > 0:54:54Obviously they can be fairly expensive.
0:54:54 > 0:54:59Service charge, again, way higher than what the average ones are.
0:54:59 > 0:55:03It would certainly need to be investigated fairly well
0:55:03 > 0:55:06to get that sorted before you think of selling the property.
0:55:06 > 0:55:10This flat is intended as a rental property in the short term.
0:55:10 > 0:55:15But in the long term, could this investment, likely to be in excess of 60,000,
0:55:15 > 0:55:18once the lease is extended, make a profit if sold on?
0:55:19 > 0:55:22If we place the property on the market for sale,
0:55:22 > 0:55:25I'd expect to achieve around 85 to £90,000.
0:55:25 > 0:55:28If I put the property up for sale at the present time,
0:55:28 > 0:55:32I would suggest figures within the region of 80 to 85,000.
0:55:32 > 0:55:35- That's OK!- What a mark up!- Yeah. Not that we're going to sell it.
0:55:35 > 0:55:39Those numbers suggest this is a pretty sound investment.
0:55:39 > 0:55:43But with their new tenant paying around £500 a month,
0:55:43 > 0:55:46are they maximising its potential on the rental market?
0:55:47 > 0:55:50If we put the property on the market for rental now,
0:55:50 > 0:55:54I'd expect to achieve around £525 per calendar month.
0:55:54 > 0:55:58I'd put it on the rental market for somewhere around £500 per calendar month.
0:55:58 > 0:56:05- Yes, that's what we thought it is. - No, that's great.- Good, yeah.
0:56:05 > 0:56:08With a rental income of £500 a month,
0:56:08 > 0:56:11taking into account that annual service charge,
0:56:11 > 0:56:16this place could generate a decent yield of almost six per cent.
0:56:16 > 0:56:19Perhaps Julie's reservations about it were unfounded.
0:56:19 > 0:56:22Will Keith be allowed back into the auction rooms on his own?
0:56:22 > 0:56:25He's not going to any auctions without me in future!
0:56:25 > 0:56:28I can't trust him!
0:56:28 > 0:56:29- We'll see!- Yeah!
0:56:32 > 0:56:35So Julie may go along to the next auction to hold Keith's hand.
0:56:35 > 0:56:40Not only to give him support, but to keep a check on how much he bids!
0:56:45 > 0:56:47Not enough for you?
0:56:47 > 0:56:50We'll have plenty more for you next time.
0:56:50 > 0:56:53- Join us soon for more Homes Under The Hammer.- See you then.- Bye!- Bye!
0:57:14 > 0:57:17Subtitles by Red Bee Media Ltd