0:00:02 > 0:00:04Have you thought about a change of career
0:00:04 > 0:00:06and trying something completely different?
0:00:06 > 0:00:10Property developing appeals to many, offering a different lifestyle.
0:00:10 > 0:00:13Yes. But it's not as easy as it might seem.
0:00:13 > 0:00:17One good way to start could be by visiting a local property auction.
0:00:42 > 0:00:44The lure of the auction room is very strong,
0:00:44 > 0:00:47but what should you spend your money on?
0:00:47 > 0:00:50Even if you have your mind set on a place, you may get outbid.
0:00:50 > 0:00:53Yes. So you have to do your research on several properties
0:00:53 > 0:00:55and keep your options open.
0:00:55 > 0:00:58So here's what inspired the buyers on today's show.
0:00:59 > 0:01:05This three-bedroom semi in Stoke certainly brings a splash of colour to proceedings.
0:01:05 > 0:01:08Well, this hallway is what you call true blue.
0:01:09 > 0:01:12In Plymouth, whichever way you look at it,
0:01:12 > 0:01:14you'll need to watch your step here.
0:01:14 > 0:01:18But at the moment it's kind of a work in progress, so tread lightly.
0:01:20 > 0:01:24And in Central London, you're in for some surprises in this flat.
0:01:24 > 0:01:26This is the kitchen.
0:01:26 > 0:01:29Yes, it is the kitchen. It's absolutely tiny!
0:01:30 > 0:01:35All these properties went to auction and we'll find who bought them
0:01:35 > 0:01:39- and what they paid when they went under the hammer.- Sir.
0:01:42 > 0:01:45Stoke-on-Trent is famous for its industrial past.
0:01:45 > 0:01:50It's also the birthplace of the one and only Robbie Williams.
0:01:50 > 0:01:56# Let me entertain you... #
0:01:56 > 0:01:59I'm just outside the city centre, in the suburb of Meir.
0:01:59 > 0:02:04There is some of the most affordable housing in the country here,
0:02:04 > 0:02:08but will today's auction lot entertain me? Let's find out.
0:02:08 > 0:02:11I'm here to see a three-bedroom semi-detached house
0:02:11 > 0:02:14that had a guide of £49,000.
0:02:16 > 0:02:19The extremely pretty garden at the front makes up for
0:02:19 > 0:02:24the crumbling paint on the exterior. First impressions are off to a blooming good start.
0:02:26 > 0:02:29Well, this hallway is what you call true blue.
0:02:29 > 0:02:31Let's have a look at this lounge.
0:02:31 > 0:02:34Well, it's a really good space, great proportions in here
0:02:34 > 0:02:38and this lovely bay window, you've got double glazing,
0:02:38 > 0:02:41and nice views onto that well-kept front garden. I like to see that.
0:02:41 > 0:02:44No central heating, just storage heaters,
0:02:44 > 0:02:48I would upgrade to some gas, but a big space.
0:02:48 > 0:02:51Let's have a look and see what's through here.
0:02:51 > 0:02:54Oh, it's a bit of a stark contrast in this kitchen.
0:02:54 > 0:02:58Not as bright and airy, but again, what I do like is the space.
0:02:58 > 0:03:00You've got a lot to work with in here.
0:03:00 > 0:03:02Of course, it all needs ripping out and modernising,
0:03:02 > 0:03:06but there's enough room to put a big table over there,
0:03:06 > 0:03:08you've got lots of extra space out there -
0:03:08 > 0:03:12you could have a utility - you've got a downstairs toilet.
0:03:12 > 0:03:15So, really, for the £49,000 guide price
0:03:15 > 0:03:18I think you've got a lot for your money here.
0:03:18 > 0:03:22Yes, you do, but it's going to require a lot of money
0:03:22 > 0:03:24to put this back into tip-top shape.
0:03:24 > 0:03:28At the moment, it's feeling rather sorry for itself.
0:03:28 > 0:03:32# Such a crying, crying, crying shame
0:03:32 > 0:03:37# It's such a crying, crying, crying shame
0:03:37 > 0:03:39# Shame... #
0:03:39 > 0:03:42Upstairs, there are two well-proportioned bedrooms
0:03:42 > 0:03:44and one boxy one.
0:03:44 > 0:03:47The bathroom is up here, too, which is good news,
0:03:47 > 0:03:51as is the lovely garden outside.
0:03:51 > 0:03:55The bad news, however, is lurking in the sitting room.
0:03:55 > 0:03:59There's something about this house that could make it difficult to secure a mortgage
0:03:59 > 0:04:01and in these economic climes, well,
0:04:01 > 0:04:04you literally can not afford to jeopardise that.
0:04:04 > 0:04:09Now, the problem here is this - used as fill material in house construction,
0:04:09 > 0:04:12it first became common in the mid-1940s
0:04:12 > 0:04:14and in the immediate post-war period,
0:04:14 > 0:04:17when construction materials were in short supply.
0:04:17 > 0:04:23Solid floors like these, comprising of concrete floor slab, overfill material proved popular.
0:04:23 > 0:04:27Also, waste material, such as red ash, were promoted by the government
0:04:27 > 0:04:30as being appropriate material for use.
0:04:30 > 0:04:34So the result - bowed floors and cracked tiles.
0:04:34 > 0:04:37It's the red ash reacting with the concrete
0:04:37 > 0:04:39and it requires total removal.
0:04:40 > 0:04:44So that is not going to be cheap.
0:04:47 > 0:04:51So a potential banana skin for any prospective buyer.
0:04:51 > 0:04:54What financial impact could this have on the renovation?
0:04:54 > 0:04:57We asked a local estate agent for her assessment.
0:04:57 > 0:05:02'This needs to be tested, because essentially it can cause problems with the construction.'
0:05:02 > 0:05:05A typical test will cost about £140.
0:05:05 > 0:05:07The results will be back with you within a week or so,
0:05:07 > 0:05:12and you can then assess as to whether the floors need to be replaced.
0:05:12 > 0:05:14Costs can be £7-£8,000, if this is necessary.
0:05:17 > 0:05:20That will be quite a chunk out of anyone's budget,
0:05:20 > 0:05:24so something to be particularly aware of when taking this on.
0:05:24 > 0:05:27Aside from that, what about the property as a whole?
0:05:29 > 0:05:32I noticed there's no off-street parking,
0:05:32 > 0:05:35which would enhance the property and add to its value.
0:05:35 > 0:05:39So if the future owners could in fact get approval from the local authority
0:05:39 > 0:05:42to get a dropped curve in, that would be great.
0:05:44 > 0:05:48This could add as much as £5,000 to the end value,
0:05:48 > 0:05:51so I would advise anyone taking this house on to do that.
0:05:51 > 0:05:55But once it's been brought up to scratch, how much could it be worth?
0:05:55 > 0:06:00Once renovated, I'd put this property on the market at about £75,000.
0:06:00 > 0:06:03What about the rental market?
0:06:03 > 0:06:05As far as the rental market is concerned,
0:06:05 > 0:06:09this property could achieve £400 per month, once it's been refurbished.
0:06:10 > 0:06:13A nice enough property, but if it does have red ash flooring,
0:06:13 > 0:06:16then it will be a costly house
0:06:16 > 0:06:18and it will be harder to find a mortgage.
0:06:18 > 0:06:20Somebody ran the risk.
0:06:20 > 0:06:22Let's find out who that was as we go to auction.
0:06:22 > 0:06:27Lot 27, a three-bedroomed ex-local authority semi-detached house,
0:06:27 > 0:06:28needs a bit of updating.
0:06:28 > 0:06:3135, then. Start me at 35.
0:06:31 > 0:06:3535, I'm bid, thank you. At £35,000.
0:06:35 > 0:06:3640, it is.
0:06:36 > 0:06:40At £40,000. 45, now.
0:06:40 > 0:06:42Take one if it helps. 41, on the front now.
0:06:42 > 0:06:45At 41, on the front. 42, is it?
0:06:45 > 0:06:4942, 43, 44, 45.
0:06:50 > 0:06:53At 45,000, bid's on the front, against you, standing.
0:06:53 > 0:06:5545, then, for the first time.
0:06:56 > 0:06:5845, for the second time.
0:06:58 > 0:07:03Third and final time, at £45,000.
0:07:04 > 0:07:06You bought it. Well done, sir.
0:07:06 > 0:07:10That successful bid of 45,000 came from Arthur, here on the left,
0:07:10 > 0:07:14who was accompanied at the auction by his friend Ken.
0:07:16 > 0:07:19Arthur's a full-time carer for his daughter, who has cerebral palsy,
0:07:19 > 0:07:22and Ken's a self-employed electrician.
0:07:22 > 0:07:24They plan to work together on this project.
0:07:24 > 0:07:29So I met the two pals back at the property to find out more.
0:07:29 > 0:07:31- Ken and Arthur, congratulations. - Thanks.
0:07:31 > 0:07:35It's very unusual and quite rare that you'd get a house under the guide price.
0:07:35 > 0:07:38It is. It is, but I think we're just quite lucky with it, really.
0:07:38 > 0:07:41Yeah, on the night, the way the prices were going, we didn't think
0:07:41 > 0:07:44we'd get anything at all, but we dropped in lucky, I think.
0:07:44 > 0:07:48- So who has financed this property? - I have.- Ken, what are you doing?
0:07:48 > 0:07:52I'm just going to help Arthur. He's my friend, so just going to help him out with this one, really.
0:07:52 > 0:07:54So, is this your first project?
0:07:54 > 0:07:57Jumped in with two feet, didn't do a lot research but,
0:07:57 > 0:07:59um...just jumped in there.
0:07:59 > 0:08:03Got some premium bonds that I cashed in and I've got this house.
0:08:03 > 0:08:08- Did you have any idea that it was a red-ash floor prior to auction?- No.
0:08:08 > 0:08:10So you did jump in with feet first!
0:08:10 > 0:08:13I did jump in and then just prior...
0:08:13 > 0:08:15before the auction on the night,
0:08:15 > 0:08:19we were told that it might have a red-ash problem. So, um...
0:08:19 > 0:08:21So you knew there could be a little problem.
0:08:21 > 0:08:23There could be a little problem,
0:08:23 > 0:08:27but now we've also found out that there's also no actual mains gas into the property,
0:08:27 > 0:08:33so we've actually got to put a new line into the house, as well, which is more expense.
0:08:33 > 0:08:36Have you thought about how to tackle this floor?
0:08:36 > 0:08:40Are you going to rip it all up? Get guys in to do it?
0:08:40 > 0:08:42Well, we don't know what we're going to do with it.
0:08:42 > 0:08:45I think, obviously, we're going to have to have it dug up.
0:08:45 > 0:08:49So, cost-wise, we probably will do a lot of it ourselves.
0:08:49 > 0:08:53If we need help, we'll have to get help, but if we don't do it ourselves,
0:08:53 > 0:08:56Arthur might find himself on the bad end of a deal.
0:08:56 > 0:08:57And out of pocket.
0:08:57 > 0:08:59That's something we don't want,
0:08:59 > 0:09:04so we will be looking at this more than likely to do ourselves, really.
0:09:04 > 0:09:06We have had a word with the neighbours
0:09:06 > 0:09:10and, apparently, the one next to this, he's on wooden floors
0:09:10 > 0:09:13and he says he's got a massive gap underneath his
0:09:13 > 0:09:16and the one two up, he says has already been done.
0:09:16 > 0:09:18They had to dig their floor up and do it.
0:09:18 > 0:09:19So it is a problem in this area.
0:09:20 > 0:09:22And a problem Arthur needs to put right
0:09:22 > 0:09:24if he's to have any hope of selling this on.
0:09:24 > 0:09:28His current budget is £10,000-£15,000,
0:09:28 > 0:09:31so it's going to be tight if he's going to make a profit.
0:09:33 > 0:09:34# Straight back down
0:09:34 > 0:09:36# Come back down
0:09:36 > 0:09:38# Straight back down, y'all
0:09:38 > 0:09:42# Straight back down to earth... #
0:09:42 > 0:09:47How long do they think it will take them to do the work?
0:09:47 > 0:09:51We estimate three/four months to get it done.
0:09:51 > 0:09:53So are you going to be working as a team?
0:09:53 > 0:09:57- Not always we won't be, no.- I'll probably be on it more than Arthur.
0:09:57 > 0:10:00Ken will be on it more. I've got other commitments at home.
0:10:00 > 0:10:03- I am my daughter's carer.- OK.
0:10:03 > 0:10:05So that takes up a lot of the time,
0:10:05 > 0:10:08especially as the summer holidays are coming...
0:10:08 > 0:10:10perhaps the odd day I might squeeze in,
0:10:10 > 0:10:14but most of the time I'll be at home with my daughter.
0:10:14 > 0:10:17And you'll be overseeing or actually doing the work.
0:10:17 > 0:10:20Well, doing some of it - as much as I can really.
0:10:20 > 0:10:24Anything to help Arthur out and just to try and get it sorted,
0:10:24 > 0:10:26get the first one under your belt, isn't it?
0:10:26 > 0:10:28How do you feel, helping your friend?
0:10:28 > 0:10:32I'm more than happy to help Arthur out. It's no problem.
0:10:32 > 0:10:34We've been friends for a long time
0:10:34 > 0:10:37and we seem to be on the same wavelength
0:10:37 > 0:10:41and this is the sort of thing Arthur wants to do and I like doing this, anyway,
0:10:41 > 0:10:44so it's just a bit of bonus for me. So we're more than happy to do it.
0:10:44 > 0:10:47So how did this come about? Over a pint or something?
0:10:47 > 0:10:51Well, to be honest, I'm not quite sure how it came about.
0:10:51 > 0:10:55I think we were talking about auctions and then we were on the auction site
0:10:55 > 0:11:01and before we knew it, we were sat in the auction at Stoke-on-Trent
0:11:01 > 0:11:02and Arthur was raising his hand.
0:11:02 > 0:11:09# Cos I made my mind up you're going to be mine... #
0:11:09 > 0:11:12Now, that's not a local accent, Arthur, where are you from?
0:11:12 > 0:11:15I'm from the Shropshire-Welsh border.
0:11:15 > 0:11:17So what brings you here to Stoke?
0:11:17 > 0:11:22The auction, I suppose. The auction was local in Stoke,
0:11:22 > 0:11:24so I bought the house and we're here.
0:11:24 > 0:11:27It takes about an hour and a quarter, so it's not too bad.
0:11:29 > 0:11:33I wonder if he'll still be saying that at the end of the renovation.
0:11:33 > 0:11:36Ken and Arthur both live in Shrewsbury,
0:11:36 > 0:11:38commuting two and a half hours every day
0:11:38 > 0:11:41will really tot up over the duration of the project.
0:11:41 > 0:11:44What is Arthur's long-term plan for this property?
0:11:46 > 0:11:49Sell it on and get something a bit nearer home,
0:11:49 > 0:11:52something a bit.. doesn't want so much doing to it,
0:11:52 > 0:11:54but I'll do more research next time.
0:11:54 > 0:11:58Guys, good luck with this. I hope the floor comes up OK.
0:11:58 > 0:12:01- Great meeting you both. - Thank you very much.- Thank you.- Ta.
0:12:01 > 0:12:06You see, viewers, research is key when buying your property at auction.
0:12:06 > 0:12:08Poor Arthur has found out the hard way,
0:12:08 > 0:12:11but his nice friend Ken is on hand to help him out.
0:12:11 > 0:12:14I hope he makes a return on his investment.
0:12:14 > 0:12:17You can find out if he does later on in the programme.
0:12:21 > 0:12:26Plymouth is on the south coast of Devon.
0:12:26 > 0:12:31The city is at the head of one of the world's largest and most spectacular natural harbours,
0:12:31 > 0:12:36so will today's property float my boat or sink without trace?
0:12:41 > 0:12:45Well, the property I'm here to see is in Mount Gould,
0:12:45 > 0:12:48a suburb of Plymouth, and this is it.
0:12:48 > 0:12:53Three-bedroomed semi-detached, had a guide price of 90,000 quid.
0:12:53 > 0:12:56Internally, lots of stuff, but externally, straight away,
0:12:56 > 0:12:59what I'm seeing is, it needs a bit of kerb appeal.
0:13:01 > 0:13:03The property is on a path leading from a cul de sac,
0:13:03 > 0:13:06which stops about 50 metres away.
0:13:06 > 0:13:09Unfortunately, it looks as though residents
0:13:09 > 0:13:12have been using the path to drive on anyway.
0:13:12 > 0:13:14The house itself could benefit from a bit of TLC,
0:13:14 > 0:13:17although those windows do appear to be pretty new.
0:13:20 > 0:13:24And so, what's in store behind the door?
0:13:24 > 0:13:26Well, actually, not too bad.
0:13:26 > 0:13:30Fairly standard, through the door, stairs up to the bedrooms,
0:13:30 > 0:13:33you've got a lounge over this side here
0:13:33 > 0:13:35and over this side, another lounge.
0:13:35 > 0:13:38Actually, it's quite a nice, um, well, an attempt at being modern.
0:13:38 > 0:13:42We've got one of those fireplaces with a fake log-effect fire.
0:13:42 > 0:13:45I'd like to see something more traditional in there.
0:13:45 > 0:13:48But it's not a bad-sized space, lots of light through the windows,
0:13:48 > 0:13:50and patio doors out onto the garden.
0:13:50 > 0:13:53And then through here to the kitchen
0:13:53 > 0:13:57and it doesn't look to be in too bad condition, although, um, well...
0:13:57 > 0:14:00No, I think if you just put a laminate floor down in here,
0:14:00 > 0:14:04maybe spruce the units up, it would be serviceable.
0:14:07 > 0:14:10The people who bought this house at auction
0:14:10 > 0:14:12have wasted no time in getting stuck in.
0:14:12 > 0:14:15They've already been in and removed the wall
0:14:15 > 0:14:17between the kitchen and the lounge,
0:14:17 > 0:14:22but it's left a whopping hole in the ceiling upstairs, as well.
0:14:22 > 0:14:25I mean, I like what they've done, but at the moment,
0:14:25 > 0:14:28it's kind of work in progress, so tread lightly.
0:14:30 > 0:14:33Opening up this space is a great idea
0:14:33 > 0:14:37and will help unify and modernise the lower floor.
0:14:37 > 0:14:39Apart from finishing the removal,
0:14:39 > 0:14:43the only work that really needs to be down here is cosmetic.
0:14:43 > 0:14:46A good start, but what about upstairs?
0:14:48 > 0:14:50So, a reasonable size double bedroom there,
0:14:50 > 0:14:54a separate loo and bathroom.
0:14:54 > 0:14:58Unfortunately, both quite small. I'm not sure how to improve that.
0:14:58 > 0:15:00And then it starts to get a bit interesting,
0:15:00 > 0:15:03because you've got two more bedrooms. This is kind of a box room
0:15:03 > 0:15:07and then a second double bedroom on the front there.
0:15:07 > 0:15:12Again, it has been improved by this bit of work that's been going on.
0:15:12 > 0:15:15Still, it's not as big as I'd like it to be.
0:15:15 > 0:15:18However, I think there may be a solution down there.
0:15:22 > 0:15:26So there's scope to change room sizes up here
0:15:26 > 0:15:29and move that bathroom. There's further potential, too.
0:15:33 > 0:15:36The house benefits by being on a corner plot
0:15:36 > 0:15:39and not only does that mean you've got a nice big garden,
0:15:39 > 0:15:41but when it comes to increasing that internal space,
0:15:41 > 0:15:45you've got room for an extension, either on the back here
0:15:45 > 0:15:47or going out to the side of the property.
0:15:47 > 0:15:52Now, that not only gives you the chance to turn this into a really big family house
0:15:52 > 0:15:54but, in terms of rental potential,
0:15:54 > 0:15:57it really puts it in a different league.
0:15:59 > 0:16:01Lack of kerb appeal aside,
0:16:01 > 0:16:06this is a decent-size property for that guide price of just 90,000.
0:16:06 > 0:16:09There's plenty of scope to develop here.
0:16:09 > 0:16:13We invited an agent from the auction house to give us his opinion.
0:16:18 > 0:16:23'The property, typical ex-local authority. Good-sized rooms.
0:16:23 > 0:16:27'Three bedrooms on the first floor, obviously, with the bathroom.'
0:16:27 > 0:16:29'Downstairs, an open-plan kitchen, living/dining room.'
0:16:29 > 0:16:33The property itself needs refurbishment from top to bottom,
0:16:33 > 0:16:36so it will all need refurbishing completely
0:16:36 > 0:16:39to make it a great family home.
0:16:39 > 0:16:42How much could be expected if the house was rented out?
0:16:42 > 0:16:47As far as rental goes, once renovated, somewhere in the region of £500 per calendar month.
0:16:47 > 0:16:49And if sold on?
0:16:49 > 0:16:53The property value is likely to be worth somewhere in the region of £135,000,
0:16:53 > 0:16:56obviously once completed to a reasonable standard.
0:16:58 > 0:17:00So work to be done to sort this place out,
0:17:00 > 0:17:02but 90 grand, as a guide price,
0:17:02 > 0:17:05is getting you a lot of house in a decent area,
0:17:05 > 0:17:07so a good one to go for.
0:17:07 > 0:17:09Let's see who fancied it when it went to the auction.
0:17:13 > 0:17:17Lot 63, good size, three-bed, semi-detached house.
0:17:17 > 0:17:1880,000, straight in.
0:17:18 > 0:17:1980, for 63.
0:17:19 > 0:17:2180...and a half.
0:17:21 > 0:17:2581...and a half,
0:17:25 > 0:17:2982...and a half. 83...half.
0:17:29 > 0:17:3184, 84 and a half.
0:17:31 > 0:17:3585, 85 and a half, 86...
0:17:36 > 0:17:38..and a half. 87,
0:17:38 > 0:17:40and a half.
0:17:40 > 0:17:4288. 88 and a half.
0:17:42 > 0:17:4689. 89 and a half.
0:17:46 > 0:17:5190. At 90. A half, collectively.
0:17:51 > 0:17:5391. 91 and a half.
0:17:53 > 0:17:5692, half.
0:17:56 > 0:17:5993 and a half. 94 and a half.
0:17:59 > 0:18:0194 and a half.
0:18:01 > 0:18:0495. 95. At 95.
0:18:04 > 0:18:06At 95, a little one? 95 and a half.
0:18:06 > 0:18:0896, at 96 and a half.
0:18:08 > 0:18:1097 and a half.
0:18:10 > 0:18:1498 and a half.
0:18:14 > 0:18:1799 and a half. One. At one and a half. 101.
0:18:17 > 0:18:20101 and a half. 102.
0:18:20 > 0:18:22At 102, once.
0:18:22 > 0:18:25At 102 twice, bid's on my left.
0:18:25 > 0:18:27At 102, all done, at 102 and out.
0:18:27 > 0:18:29Sir, yours.
0:18:29 > 0:18:32With their bid of 102,000,
0:18:32 > 0:18:36the new owners are husband-and-wife, Danny and Laura.
0:18:36 > 0:18:40Danny's a self-employed window cleaner and painter-decorator,
0:18:40 > 0:18:43while Laura's a support worker for adults with learning difficulties.
0:18:45 > 0:18:48They have a two-year-old son, Max,
0:18:48 > 0:18:51and have bought this as their family home.
0:18:51 > 0:18:56- Laura, Danny, lovely to meet you. - Thank you.- Hiya.- Congratulations. - Thank you.
0:18:56 > 0:18:57Tell me why you wanted the house.
0:18:57 > 0:19:01We've sort of lived in this area, so we know it, it's local to us.
0:19:01 > 0:19:03- You know the area very well.- Yeah.
0:19:03 > 0:19:06- It's a nice little part of Plymouth. - Yeah, it's lovely.
0:19:06 > 0:19:09What was it that appealed to the house? Was it just the size?
0:19:09 > 0:19:13It was the area more than anything, because of the budget that we had,
0:19:13 > 0:19:17we were looking at sort of areas that we possibly didn't really want to live in,
0:19:17 > 0:19:24but that was all we could afford, whereas this one was ideal price and ideal location.
0:19:24 > 0:19:29- Great. In a bit of a state...- Yeah. - But with something you can potentially...- Work with.- Work with.
0:19:29 > 0:19:31- We weren't sure it was an ideal price.- No.- Because...
0:19:31 > 0:19:35We had a budget of what we could go up to, you know.
0:19:35 > 0:19:37If it exceeded, then we wouldn't have it.
0:19:37 > 0:19:40- So what was your budget? - 115.- Oh, right.
0:19:40 > 0:19:42- So you got it within your budget. - Yeah.
0:19:42 > 0:19:47- Is this going to be your home for a while?- Yeah, definitely.- Yeah. Hopefully for life.- Forever.
0:19:47 > 0:19:50We wanted to buy a place that we could not move again, that's it.
0:19:50 > 0:19:55- Oh, great!- So hopefully this will be it.- This will be it.- OK.
0:19:55 > 0:19:58Well, you've got a child, any thoughts of expanding the family?
0:19:58 > 0:20:04- Yeah.- Right.- I'd like to, he's a bit unsure.- Yeah, no, we will. We will.
0:20:05 > 0:20:09So it seems as though the renovations the couple do
0:20:09 > 0:20:12will be geared towards making this a real family home.
0:20:12 > 0:20:17They've been quick off the mark, as they've started some demolition work already.
0:20:17 > 0:20:20But what are their plans for the rest of the house?
0:20:20 > 0:20:24We're going to put in a new kitchen, new bathroom,
0:20:24 > 0:20:26obviously a damp-proof course.
0:20:26 > 0:20:30We're going to re-render everything, new skirtings, door liners.
0:20:30 > 0:20:33- Just everything new. - Everything new.- Right.
0:20:33 > 0:20:37- To create the house that you want. - Yeah.- Yes, definitely.
0:20:37 > 0:20:39Apart from this, which you've made open-plan,
0:20:39 > 0:20:44which is fantastic, any other major plans for internal modifications?
0:20:44 > 0:20:48The bathroom upstairs is small, so we'll move that to where the single toilet is
0:20:48 > 0:20:53and make one of the bedrooms smaller. Well, just knock out the built-in wardrobe.
0:20:53 > 0:20:56- Yeah.- So you'll have the bathroom at the end there?
0:20:56 > 0:20:59And the bathroom will be a wet room, or a shower cubicle room.
0:20:59 > 0:21:04- So who is going to do the work?- Me. - Oh, really?- The majority of it, yes.
0:21:04 > 0:21:07- Right. Anything you can't tackle? - Plumbing, electrics.
0:21:07 > 0:21:11My brother-in-law is a plasterer and my uncle is going to fit my kitchen.
0:21:11 > 0:21:14The rest of the it I can pretty much do myself.
0:21:14 > 0:21:16OK, and have you got somebody in the family who can do the electrics and the plumbing?
0:21:16 > 0:21:21- I think I have, if I ask them nicely. Yeah, my granddad.- Oh, great!
0:21:21 > 0:21:23So hopefully he can come in.
0:21:23 > 0:21:25How much are you planning to spend?
0:21:25 > 0:21:29- About £20,000. - Oh, OK. Quite a healthy budget then.
0:21:29 > 0:21:34Because it's going to be a family home, it'll probably be ongoing forever.
0:21:34 > 0:21:36There'll always be something that I want doing!
0:21:36 > 0:21:39You can't say that at the start of the project!
0:21:39 > 0:21:43- No, I can.- Break that to him afterwards.- He knows me.
0:21:43 > 0:21:44Yeah, don't I just!
0:21:44 > 0:21:47And what's your involvement going to be?
0:21:47 > 0:21:50I get to choose the nice pretty things to go inside.
0:21:50 > 0:21:52- So the decoration and... - But not too pretty.
0:21:52 > 0:21:56- Not too girly, not a girly house. - Not too girly.
0:21:56 > 0:22:01- We're very good at compromising, aren't we? If you don't like something...- It's my way or no way!
0:22:01 > 0:22:05MUSIC: "Under My Thumb" by The Rolling Stones
0:22:08 > 0:22:10So how quickly will it be sorted out?
0:22:10 > 0:22:13I think in three or four months.
0:22:13 > 0:22:15Well, listen, good luck with it.
0:22:15 > 0:22:21- Congratulations.- Thank you. - I look forward to seeing how you get on.- Thank you.
0:22:22 > 0:22:25Well, how lovely that Danny, Laura and little Max
0:22:25 > 0:22:27have got their first family home
0:22:27 > 0:22:30and it will be a wonderful one for sure,
0:22:30 > 0:22:32although I think there might be some fireworks
0:22:32 > 0:22:35when it comes to exactly what they are going to do with the place,
0:22:35 > 0:22:38although something tells me who will win any arguments!
0:22:38 > 0:22:41You can find out how they all get on later in the show.
0:22:42 > 0:22:46Coming up - if you're looking to downsize,
0:22:46 > 0:22:49this London flat could be a good choice.
0:22:49 > 0:22:51But it definitely needs a bit of a juggle.
0:22:52 > 0:22:54We're going back to Plymouth.
0:22:54 > 0:22:57Would Danny and Laura do it all again?
0:22:57 > 0:22:59Maybe not on the scale of things,
0:22:59 > 0:23:02not knocking down all the walls everywhere, but I would renovate another property.
0:23:04 > 0:23:08But first we return to Stoke. How have the boys got on there?
0:23:08 > 0:23:12It's been very good. The only thing that's been wrong is his singing.
0:23:17 > 0:23:20When we were last in Stoke-on-Trent, Arthur, here on the left,
0:23:20 > 0:23:23and his friend Ken were about to start work
0:23:23 > 0:23:28on this three-bedroom semi-detached, which they planned to sell.
0:23:28 > 0:23:32Arthur had bought it for 45,000 but they were going to split any profit.
0:23:35 > 0:23:37Arthur is a carer for his daughter.
0:23:37 > 0:23:42So his friend Ken, who is an electrician, and also lives near Shrewsbury,
0:23:42 > 0:23:44was going to do a lot of the work.
0:23:44 > 0:23:48There was a potential problem with the material used as filler for the floor,
0:23:48 > 0:23:52which would possibly mean extra hassle and cost.
0:23:52 > 0:23:56Now, have you really thought about how you are going to tackle this floor?
0:23:56 > 0:23:58Are you going to just rip it all up?
0:23:58 > 0:24:00Are you going to get guys in to do it for you?
0:24:00 > 0:24:02Well, we don't know exactly.
0:24:02 > 0:24:06I think we're going to have to have it dug up.
0:24:06 > 0:24:08So we'll probably do a lot ourselves.
0:24:08 > 0:24:09If we don't do it ourselves,
0:24:09 > 0:24:14- Arthur might find himself on the bad end of a deal here. - Out of pocket.
0:24:15 > 0:24:17Well, nine months have passed
0:24:17 > 0:24:21and we meet up again with Arthur and Ken back at the property.
0:24:21 > 0:24:25The front garden has been changed considerably to accommodate off-road parking.
0:24:27 > 0:24:31It's a shame to have lost the shrubs but it's a practical solution.
0:24:31 > 0:24:34The doorway into the living room was right by the front door,
0:24:34 > 0:24:38but now that's been moved further along the wall.
0:24:38 > 0:24:40It's made the room feel much bigger.
0:24:45 > 0:24:49Behind the living room, they've created a spacious open-plan kitchen diner.
0:24:52 > 0:24:56They've moved the dividing wall at the far end a bit further along
0:24:56 > 0:24:59and added a utility room,
0:24:59 > 0:25:03putting a window where the door to the coal store was, as Ken explains.
0:25:07 > 0:25:12Generally, with this room, we've actually took the two walls out
0:25:12 > 0:25:15that used to have the larder and the coal house.
0:25:15 > 0:25:17We put the new wall in to accommodate the kitchen,
0:25:17 > 0:25:19we measured up the kitchen to suit,
0:25:19 > 0:25:21and we're very happy with the outcome.
0:25:21 > 0:25:23As you can see, it's come out quite well.
0:25:24 > 0:25:27They've also retained the downstairs loo.
0:25:29 > 0:25:34Upstairs, the neutral colour scheme continues in the three bedrooms.
0:25:35 > 0:25:40The house has been re-wired and new central heating has been installed.
0:25:40 > 0:25:44Arthur and Ken have been very busy.
0:25:44 > 0:25:49Upstairs, walls have been stripped, the doors have been stripped, we've got new skirting boards
0:25:49 > 0:25:52and the bathroom has been completely redone.
0:25:52 > 0:25:56The bath is now where the toilet was and the toilet is where the bath was.
0:25:56 > 0:25:58New shower, all re-tiled and everything.
0:26:00 > 0:26:03So the place has been done up and is now ready to sell.
0:26:03 > 0:26:08But what about that red-ash flooring? How was that resolved?
0:26:09 > 0:26:11Yeah, well, we had a red-ash test
0:26:11 > 0:26:14and from those findings, obviously, we did have red ash,
0:26:14 > 0:26:18so what we did with that, we actually had to have it all dug up.
0:26:18 > 0:26:25We got three quotes for that work. One was £8,000, one was £6,000,
0:26:25 > 0:26:29one was £3,800, but in the end, we did it ourselves.
0:26:34 > 0:26:39Not much has been done in the back garden. It's been tidied up, but still needs finishing off.
0:26:39 > 0:26:45But the front has been completely changed and whilst it won't win at the Chelsea Flower Show,
0:26:45 > 0:26:49the practical benefit should add real value here.
0:26:51 > 0:26:54Well, what we've done out here, we've created, as you can see,
0:26:54 > 0:26:57a parking space, cos there wasn't one here when we first moved in.
0:26:57 > 0:27:00So we actually got Stoke City Council round,
0:27:00 > 0:27:05so they actually dropped the kerb for us at a price of £616
0:27:05 > 0:27:08and then we just excavated the garden ourselves,
0:27:08 > 0:27:11which before there was quite a lot of plants.
0:27:11 > 0:27:13So we moved them out of the way while we did it
0:27:13 > 0:27:15and then we put five or six ton of stones down
0:27:15 > 0:27:19and, as you can see, we've moved some of the plants around and it is as it is.
0:27:21 > 0:27:25The water pipe into the house needed replacing and there was no gas supply,
0:27:25 > 0:27:28so they've had that plumbed in, as well.
0:27:28 > 0:27:34What effect has the extra expense had on the budget that Arthur had set - between £10,000 and £15,000?
0:27:34 > 0:27:37We've spent, actually, just over 15,000,
0:27:37 > 0:27:39but we have managed to do everything.
0:27:39 > 0:27:44That's the dropped kerb, that's the new gas line that's gone in,
0:27:44 > 0:27:47new water line that's gone in, and the floors.
0:27:47 > 0:27:51Arthur's not been able to spend as much time as he would have liked here.
0:27:51 > 0:27:57Remember, he cares full time for his daughter, who has cerebral palsy.
0:27:57 > 0:28:00But the plan was always for Ken, a self-employed electrician,
0:28:00 > 0:28:02to do the bulk of the work.
0:28:02 > 0:28:05Has the partnership worked well?
0:28:06 > 0:28:08We've got on all right, haven't we?
0:28:08 > 0:28:12It's been very good, actually. The only thing that's been wrong is his singing.
0:28:13 > 0:28:19Time now to see what two local property experts think of the house.
0:28:19 > 0:28:21I think they've done a good job with it. They've stripped the property
0:28:21 > 0:28:23right back to bare brick
0:28:23 > 0:28:25and they've actually done quite a decent refit.
0:28:25 > 0:28:27I think the property looks really great.
0:28:27 > 0:28:30They've obviously paid a lot of attention to the detail and finished it very nicely.
0:28:30 > 0:28:33The kitchen is very large, they've made sensible use of the space,
0:28:33 > 0:28:38and it's more of a kitchen diner, and having a utility room attached to it is very useful.
0:28:38 > 0:28:42With having the parking to the front of the property that's really going to help
0:28:42 > 0:28:46with saleability and probably help to add some value as well.
0:28:46 > 0:28:49Arthur and Ken have no intention of renting it out.
0:28:49 > 0:28:54Their plan is to sell and hopefully make a profit, which they'll split.
0:28:54 > 0:28:57Remember, Arthur paid £45,000 at the auction
0:28:57 > 0:29:01and their budget has reached £15,000,
0:29:01 > 0:29:04so that's £60,000 invested in total.
0:29:04 > 0:29:07What is the property now worth?
0:29:07 > 0:29:12My opinion of the re-sale value of the property is £89,950.
0:29:12 > 0:29:16I'd put the property on the market for £84,950.
0:29:16 > 0:29:22That valuation range of 85 to 90,000 would generate a pre-tax profit
0:29:22 > 0:29:28between 25 and 30,000 before the usual selling expenses.
0:29:28 > 0:29:31What do they think of that?
0:29:31 > 0:29:36The way the market is at the moment I suppose between 85 and 90
0:29:36 > 0:29:38is a fair value, I suppose.
0:29:38 > 0:29:44It's a fair figure. I think we would definitely need to get the 85,000 mark to make it worthwhile.
0:29:44 > 0:29:46For the effort we put in,
0:29:46 > 0:29:51I definitely think we're worth that mark so we're looking at that.
0:29:51 > 0:29:55This was the first property development for these two friends,
0:29:55 > 0:29:59and it sounds as though there will be some profit in it in the end.
0:29:59 > 0:30:01So what now for Ken and Arthur?
0:30:01 > 0:30:04Well, a bigger picture for me is I obviously get back to work.
0:30:04 > 0:30:06Arthur's a carer for his daughter,
0:30:06 > 0:30:12so whatever he does now, it's up to him. But it all depends on the sale of this property, I suppose, really.
0:30:12 > 0:30:18Yeah. It's the sale of this property and then I will be buying another one, all being well.
0:30:20 > 0:30:23Would Ken be tempted to team up again with his mate?
0:30:23 > 0:30:27Yeah, I will possibly think about getting involved with Arthur again.
0:30:27 > 0:30:30We've done all right on this.
0:30:30 > 0:30:33If Arthur wants me back. I don't think there's a problem with that.
0:30:40 > 0:30:46Next up, we're in central London, and the postcode is W1.
0:30:46 > 0:30:48You can't get much more slap-bang in the city than that.
0:30:48 > 0:30:54We're in Marylebone, an area of London which is sandwiched between Mayfair and Regent's Park.
0:30:54 > 0:30:58Now, it's home to that famous tourist attraction Madame Tussauds,
0:30:58 > 0:31:01and also doctors, dentists and plastic surgeons from Harley Street.
0:31:01 > 0:31:07Basically, it's a desirable place to be and no wonder, over the years
0:31:07 > 0:31:09many a celeb has settled here
0:31:09 > 0:31:11including Noel Gallagher and Madonna.
0:31:11 > 0:31:15# The feeling is mine and I'm higher than the sky... #
0:31:15 > 0:31:18And they're not the only star attractions in this exclusive area of London.
0:31:18 > 0:31:21It's full of designer shops,
0:31:21 > 0:31:22cafes and restaurants,
0:31:22 > 0:31:25as well as great transport links.
0:31:25 > 0:31:28# London Town... #
0:31:28 > 0:31:31So, excitingly, what am I here to see today?
0:31:31 > 0:31:34Well, it's a flat in this purpose-built 1930s apartment block.
0:31:34 > 0:31:39It's just a short walk from the park, and, of course, Great Portland Street tube station is around the corner.
0:31:39 > 0:31:44It went to auction at a guide price of £110,000.
0:31:44 > 0:31:49Now, similar flats around here can go for three times that amount, so there must be a catch.
0:31:49 > 0:31:54What is it? I'm going to go inside and take a look around.
0:31:54 > 0:31:58The apartment block does have a rather grand facade -
0:31:58 > 0:32:01let's hope the second-floor flat can match up to the frontage.
0:32:01 > 0:32:03So this is the flat.
0:32:03 > 0:32:08You've got a little kitchen, a little bathroom in here,
0:32:08 > 0:32:12and this, a little room. So quite frankly, that's it.
0:32:12 > 0:32:18But I don't care because this is in Marylebone, it's such an amazing part of London.
0:32:18 > 0:32:23There is a lot of work to do. Straight away I'm thinking, right, where's the bed going to go?
0:32:23 > 0:32:28Probably here. I'd like to think it could be a foldaway bed to leave you with the rest of this space.
0:32:28 > 0:32:33But you've got lots of storage space here so anybody can put all their bits and pieces in here.
0:32:33 > 0:32:35But it is quite small.
0:32:35 > 0:32:39I think you'd need to think about how you could really improve this room
0:32:39 > 0:32:43but you are looking at a sort of hotel room-pied a terre.
0:32:43 > 0:32:47But for the right person, this could be a cracking buy.
0:32:47 > 0:32:51# It's a small world after all
0:32:51 > 0:32:54# It's a small world after all... #
0:32:54 > 0:33:00Yes, it certainly is. But in central London every square inch is valuable.
0:33:00 > 0:33:04The key to maximising profit here is to make the most
0:33:04 > 0:33:07of the limited floor area, starting with the kitchen.
0:33:07 > 0:33:11Now, I am laughing, because believe it or not, this is the kitchen.
0:33:11 > 0:33:14Yes, it is the kitchen. It's absolutely tiny.
0:33:14 > 0:33:20In fact, I'm not even sure whether you would get a cooker, a fridge, a washing machine in there. Hmm.
0:33:20 > 0:33:23My wardrobe at home is bigger than that.
0:33:23 > 0:33:25Now, the bathroom.
0:33:25 > 0:33:32Not a bad size. In actual fact you could think about putting the kitchen in the bathroom but then
0:33:32 > 0:33:39you've got to move all the pipe work, you've got a lot of plumbing going on, would it be financially worth it?
0:33:39 > 0:33:46Probably not. And then I was thinking how about having this space as a beautiful walk-in wardrobe, lots of
0:33:46 > 0:33:53mirrors in there, somewhere to store all your shoes, handbags, you know, the London market would like that.
0:33:53 > 0:33:57You could then think about putting a bit of a kitchen area in the one main room.
0:33:57 > 0:34:03So lots to think about with this flat but it definitely needs a juggle.
0:34:03 > 0:34:08This is a leasehold property, so any major changes to the layout,
0:34:08 > 0:34:12especially anything structural, have to be OK'd by the freeholder of the building first.
0:34:12 > 0:34:19But even with its size, £110,000 was a low guide price for around here.
0:34:19 > 0:34:25So what was the catch? So the flat is small but I have seen smaller.
0:34:25 > 0:34:29It needs a refurbishment, but that's not unusual with an auction property.
0:34:29 > 0:34:35Now the major pitfall with this apartment is that it comes with a very, very short lease.
0:34:35 > 0:34:38It's just 17 years that's left so at the moment,
0:34:38 > 0:34:42this property is unmortgagable, and it's for cash buyers only.
0:34:42 > 0:34:46Now you can, however, re-negotiate a new lease with the freeholder
0:34:46 > 0:34:51after you have owned the property for two years but the shorter the term left on the lease,
0:34:51 > 0:34:55the greater the cost of renewal, so that is something to bear in mind.
0:34:55 > 0:35:02Not extending the lease means that in 17 years the keys would have to be returned to the freeholder,
0:35:02 > 0:35:06so despite its location this property could become a diminishing asset.
0:35:06 > 0:35:11So it's a small flat with a big drawback.
0:35:11 > 0:35:15The guide price was a very reasonable 110,000,
0:35:15 > 0:35:18so we asked along a local estate agent to see what he thought of it.
0:35:18 > 0:35:22It shows great potential. It needs some modernisation,
0:35:22 > 0:35:25but flats in this building are quite sought-after,
0:35:25 > 0:35:32and with the right work, it could prove a good sort of investment.
0:35:32 > 0:35:36So the potential is there, but as that short lease is a major drawback,
0:35:36 > 0:35:40how much could the buyer expect to pay to extend the 17-year lease?
0:35:40 > 0:35:44I would estimate that you'd be looking at a ballpark figure
0:35:44 > 0:35:48in the region of £150,000-200,000, to extend this lease.
0:35:48 > 0:35:51Add that maximum figure to the £110,000 guide price,
0:35:51 > 0:35:55and the buyer is already looking at a possible outlay of 310 grand,
0:35:55 > 0:35:58and that's before any work is done.
0:35:58 > 0:36:02Would a re-sale make it all worthwhile?
0:36:02 > 0:36:05If you'd extended the lease and refurbished this to a good standard,
0:36:05 > 0:36:08I'd estimate you would get in the region of 350,000.
0:36:08 > 0:36:13If the wind is behind you, you might be 365, £375,000.
0:36:13 > 0:36:18That would leave room to make some profit, but what about the rental figures?
0:36:18 > 0:36:22Obviously, once the work has been done I'd estimate
0:36:22 > 0:36:25you'd get £1,500 per calendar month.
0:36:25 > 0:36:30Buy this property and you are buying a prime piece of London real estate.
0:36:30 > 0:36:34Yes, it's small, yes, it needs work, but it's in Marylebone.
0:36:34 > 0:36:37As with anywhere, it's the location that really counts.
0:36:37 > 0:36:41However that very, very short lease is still a worry to me.
0:36:41 > 0:36:45But did it put the bidders off? Let's find out when we head to auction.
0:36:48 > 0:36:53So, lot 69. Who wants to start me off on this? 100?
0:36:53 > 0:36:56Yeah, 100. Start there. 100 I've got.
0:36:56 > 0:36:59Anybody else for lot 69?
0:36:59 > 0:37:05How much? 102. OK, 102. 103, 104 at the back, come to you, 104.
0:37:05 > 0:37:08105 at the front, sir. 105,
0:37:08 > 0:37:11106, 107...
0:37:11 > 0:37:13108, 109,
0:37:13 > 0:37:15110 at the back.
0:37:15 > 0:37:18111,
0:37:18 > 0:37:20112, 113,
0:37:20 > 0:37:23114 at the back.
0:37:23 > 0:37:28No, it's with you, £113,000 at the front, it's against you at the back.
0:37:28 > 0:37:30Anybody else? 114, new place.
0:37:30 > 0:37:32Come to you, 115 at the front.
0:37:32 > 0:37:37This prime piece of London real estate was being keenly contested,
0:37:37 > 0:37:42so we rejoined the auction later when the bidding had reached 135,000.
0:37:42 > 0:37:46It's with the lady. Bid's £135,000 for lot 69.
0:37:46 > 0:37:49135 for the first,
0:37:49 > 0:37:53135 for the second, 136, new place,
0:37:53 > 0:37:55more competition.
0:37:55 > 0:37:57137. 137,
0:37:57 > 0:38:00138, 139.
0:38:02 > 0:38:06139, 140, 141. No?
0:38:06 > 0:38:10141? Cheap going at 150,
0:38:10 > 0:38:13I would have thought. 141? 141.
0:38:13 > 0:38:16142. Yes? No?
0:38:16 > 0:38:20With you. It's £141,000 against the lady on my right.
0:38:20 > 0:38:23141 for the first,
0:38:23 > 0:38:27141 for the second, 141 for the third and final time.
0:38:27 > 0:38:30Are we all done? Sold 141, well bought.
0:38:32 > 0:38:36The successful bid of £141,000 was made by Susan.
0:38:38 > 0:38:42She's a part-time property developer and full-time mum to four daughters.
0:38:42 > 0:38:46She's originally from Dublin, but now lives in Surrey.
0:38:46 > 0:38:49I met up with her at the flat to find out more.
0:38:49 > 0:38:53- Susan, it's lovely to meet you today. Congratulations.- Thank you. - Why did you want to buy this flat?
0:38:53 > 0:38:55I really like the street actually,
0:38:55 > 0:38:59that was one of the things I think captured me when I arrived here.
0:38:59 > 0:39:05And in a cul-de-sac, so you've got no passing traffic, so it's very quiet and it's just the area.
0:39:05 > 0:39:07I like Marylebone, I think it's great.
0:39:07 > 0:39:10Now, Susan, you paid £141,000 for this.
0:39:10 > 0:39:14Yes. It was a little bit more than I had intended to spend.
0:39:14 > 0:39:18So come on, be honest with me, how much had you intended to pay on the day?
0:39:18 > 0:39:22Oh, um, 131 was actually my limit.
0:39:22 > 0:39:25Oh. So you got really sucked in on auction day.
0:39:25 > 0:39:29I did. I did, I'm afraid, yes. It's the excitement, and somebody else is bidding against you,
0:39:29 > 0:39:33and you think, well, if you go away and you haven't made that last bid,
0:39:33 > 0:39:37and I thought, overall, have a look at it and see how much it needs spending on it.
0:39:37 > 0:39:41If I can maybe make some cuts on the amount that needs to be spent
0:39:41 > 0:39:44on the refurbishment, then I'll hopefully recoup the money that way.
0:39:44 > 0:39:49Now, the lease is incredibly short, you know, which means it's kind of really only cash buyers need apply.
0:39:49 > 0:39:56That's right. I'd actually got finance from another property and then so had the money set aside.
0:39:56 > 0:39:59So it obviously didn't put you off, the fact it does have an incredibly short lease.
0:39:59 > 0:40:03It would have put a lot of other buyers off. How much research did you do in finding out
0:40:03 > 0:40:08how much it would cost you to renew this lease, because that is something you are going to have to do.
0:40:08 > 0:40:11I think even if I'm renting it out in the short term I'll get my money
0:40:11 > 0:40:14back with the length of time that I've still got left on the lease.
0:40:14 > 0:40:20And then obviously between that, between now and a couple of years, I'm in a position then,
0:40:20 > 0:40:26with income coming in, to look at extending the lease and negotiating the best deal that we possibly can.
0:40:26 > 0:40:31Susan has calculated that even if she doesn't extend the 17-year lease,
0:40:31 > 0:40:35the rental income over that time could still mean a healthy profit.
0:40:35 > 0:40:41# Time is on my side... #
0:40:41 > 0:40:46Sounds like a canny move but then Susan has 15 years of experience
0:40:46 > 0:40:50of investing in properties and building up her small portfolio.
0:40:50 > 0:40:53I'm a full-time mum and I've got four children
0:40:53 > 0:40:56and so I do this as a job
0:40:56 > 0:41:02that I can fit in around my kids and buying property, doing it up,
0:41:02 > 0:41:06maybe selling it or holding onto it and renting it out.
0:41:06 > 0:41:09What do your kids say, because I suppose you are always rushing off
0:41:09 > 0:41:12here and there, and coming into London, and choosing wallpapers and fabrics?
0:41:12 > 0:41:16Well, they think it's always a bit mad but they quite like me testing things out on their bedrooms -
0:41:16 > 0:41:20I change their bedroom colours quite a bit, so they quite enjoy it from that point of view.
0:41:20 > 0:41:25And my oldest daughter is very keen, she's got her eye on this place and I think she'd quite like to have
0:41:25 > 0:41:30a little pied a terre in London, but I'm afraid she won't pay the rent so that's not an option.
0:41:30 > 0:41:35Because Susan went a bit over budget on auction day, she has limited
0:41:35 > 0:41:39her refurbishment costs to 15,000 or less, if she can manage it.
0:41:39 > 0:41:42She needs to get tenants in paying rent as soon as possible.
0:41:42 > 0:41:49So to enable a fast turnaround, she doesn't plan any major layout changes.
0:41:49 > 0:41:52How long do you think it's going to take you to get this place sorted?
0:41:52 > 0:41:58I think that it's going to take probably about six weeks once I start getting people in doing
0:41:58 > 0:42:03the estimates, measuring up and then obviously, you know, you're in a cycle then of waiting for people
0:42:03 > 0:42:09to schedule in your work so I'm hoping within the next two months to have it ready for rental.
0:42:09 > 0:42:11- Susan, good luck with this, I'm really excited to see how you do it. - Thank you.
0:42:11 > 0:42:14- I'm sure it's going to be stunning. - Thank you.- Lovely to meet you.
0:42:14 > 0:42:18- Thanks.- Thank you. Well, Susan seems pretty happy with her new property,
0:42:18 > 0:42:23and although she's a self-styled part-time developer, she does have plenty of experience.
0:42:23 > 0:42:28But will she really be able to achieve the high-end finish she wants in just a couple of months?
0:42:28 > 0:42:31And will she use the space wisely?
0:42:31 > 0:42:35We'll be back later on in the programme to find out how she does.
0:42:38 > 0:42:43We hope our buyers have been working away on their investment and making themselves a nice profit.
0:42:43 > 0:42:46Yes. Have they been busy, or has it all gone a bit quiet?
0:42:46 > 0:42:49Well, it's the moment of truth. Let's go back and find out.
0:42:49 > 0:42:53Back now to Plymouth, where earlier in the programme,
0:42:53 > 0:42:59local couple Danny and his wife Laura bought this three-bedroom semi for 102,000.
0:42:59 > 0:43:03It was to be their family home once they had refurbished it.
0:43:03 > 0:43:07Laura would project manage, and as Danny's a painter and decorator,
0:43:07 > 0:43:10he didn't waste any time in getting started.
0:43:10 > 0:43:15He's already knocked down two walls and had grand plans for the rest of the house.
0:43:15 > 0:43:22We're going to put a new kitchen, new bathroom, obviously a damp-proof course, re-render everything,
0:43:22 > 0:43:24new skirtings, door frames, door liners.
0:43:24 > 0:43:27- Just everything new.- Everything new.
0:43:27 > 0:43:29Well, it's now 13 months later,
0:43:29 > 0:43:34and we meet up again with Danny, Laura and Max.
0:43:37 > 0:43:40the property has undergone a massive overhaul.
0:43:40 > 0:43:45On the ground floor the kitchen diner is absolutely stunning.
0:43:45 > 0:43:51It has a real impact as soon as you see it with quality units, lighting and decoration.
0:43:51 > 0:43:54Having removed a wall at one end of the kitchen,
0:43:54 > 0:43:57Danny decided to build a replacement at the other.
0:44:00 > 0:44:04We blocked up the doorway coming from the lounge into the kitchen,
0:44:04 > 0:44:08so we could have units right the way round, put in plinth lights,
0:44:08 > 0:44:13we added a French door so the entrance to the garden didn't have to come into the lounge,
0:44:13 > 0:44:16and we think we've got a really good finish here.
0:44:17 > 0:44:22The living room on the other side isn't quite as advanced,
0:44:22 > 0:44:25but, as elsewhere, the walls and the ceiling have been re-plastered.
0:44:25 > 0:44:31Upstairs, the layout has seen major alterations.
0:44:31 > 0:44:34The toilet is now the main family bathroom.
0:44:34 > 0:44:37To fit the bath in, they needed extra space,
0:44:37 > 0:44:40so how did Danny change the layout?
0:44:40 > 0:44:46Well, originally, this was just a cubicle toilet and we had a small bathroom so we knocked through
0:44:46 > 0:44:50into the bedroom to make a bigger family-size bathroom
0:44:50 > 0:44:54and then the original bathroom, we turned into a wet room.
0:44:54 > 0:44:59We went for quite a modern look and contemporary look but the tiles were a bit more expensive than we
0:44:59 > 0:45:03wanted to pay but, you know, we got the look we wanted at the end so we're very pleased.
0:45:03 > 0:45:06Although the second bedroom has lost its wardrobe,
0:45:06 > 0:45:10it's still a good sized room for their son Max.
0:45:10 > 0:45:13Although be careful of your new bed, Max.
0:45:13 > 0:45:15MAX: I just heard it crack.
0:45:16 > 0:45:20The finish in the master bedroom is again superb.
0:45:20 > 0:45:22So who has been responsible for the design?
0:45:22 > 0:45:25The bedroom was my area,
0:45:25 > 0:45:29so I chose the wallpaper and...
0:45:29 > 0:45:33Well, I had to agree. If I didn't like it then we wouldn't have had it.
0:45:33 > 0:45:36They still have some decorating to do in the third bedroom,
0:45:36 > 0:45:41but since we last saw Danny and Laura, they've had some very exciting news.
0:45:41 > 0:45:47The spare room is no longer spare, as it is now our next baby's room.
0:45:47 > 0:45:49With a new arrival on the way,
0:45:49 > 0:45:53everything is really taking shape in their new family home.
0:45:53 > 0:45:57But achieving this high quality finish has taken a little longer than planned
0:45:57 > 0:46:03thanks to some unwanted wildlife and vegetation in the dining room.
0:46:03 > 0:46:07We had woodworm in the dining room so we had to replace the joists, the base plates in the floor,
0:46:07 > 0:46:10and then when the floor was up, we realised we had mushrooms growing out the wall,
0:46:10 > 0:46:15so we had to take half of the walls off again and redo all the plaster.
0:46:15 > 0:46:19Outside, the garden still needs to be tackled,
0:46:19 > 0:46:22but the inside is almost finished.
0:46:22 > 0:46:25It has taken a long time, but as Danny's a professional decorator,
0:46:25 > 0:46:27he's done a lot of the work here himself.
0:46:27 > 0:46:29He's done a really good job,
0:46:29 > 0:46:32but how much have they had to spend?
0:46:32 > 0:46:35So far we've spent about 30. 30,000.
0:46:35 > 0:46:39I think it's going to be about another 5,000 to finish,
0:46:39 > 0:46:41so a total of 35,000.
0:46:41 > 0:46:44That's 15,000 more than they had originally planned.
0:46:44 > 0:46:50The property has been re-wired, a new boiler had been fitted and the plumbing has been replaced.
0:46:50 > 0:46:53In future the roof will need to be replaced but right now,
0:46:53 > 0:46:56Danny is concentrating on getting the inside finished,
0:46:56 > 0:47:01so they can move in. So how close are they?
0:47:01 > 0:47:02- A couple of weeks. - Yeah, I think, two weeks.
0:47:02 > 0:47:04Two to three weeks and we'll be in.
0:47:04 > 0:47:08We kept giving ourselves a date and then it got further away again,
0:47:08 > 0:47:12and something else happened so eventually when we do move in,
0:47:12 > 0:47:13I'm never moving out.
0:47:13 > 0:47:18Time to get the opinions of two local property experts.
0:47:18 > 0:47:23What will they think of the transformation of this three-bed semi?
0:47:23 > 0:47:26He has made a massive transformation of the accommodation,
0:47:26 > 0:47:31made the living room and the kitchen-breakfast room separate,
0:47:31 > 0:47:34and he's really gone to town on the standard of the kitchen itself.
0:47:34 > 0:47:37The principal thing I think will sell the property is the kitchen.
0:47:37 > 0:47:42Just walk in, and it's a buy-me house, really.
0:47:42 > 0:47:44Wonderful size and the quality finish is fantastic.
0:47:44 > 0:47:49The master bedroom has been done to a lovely high spec with built-in wardrobes across one of the walls,
0:47:49 > 0:47:53and I think that's going to work really, really well for the family.
0:47:53 > 0:47:56Three bedrooms upstairs and he's managed to squeeze in a shower room
0:47:56 > 0:48:01as well as a bathroom, which is handy obviously for an older family.
0:48:01 > 0:48:04So has the property risen in value?
0:48:04 > 0:48:10Remember they paid £102,000 at the auction and their outlay has been 35,000,
0:48:10 > 0:48:15making a total of £137,000. What's the house now worth?
0:48:17 > 0:48:23Re-sale value, in the current market, we'll be looking at around the 135 to £140,000 mark.
0:48:23 > 0:48:28Because of the high standard and quality of the work so far, if he continues to do this throughout,
0:48:28 > 0:48:31you could market the property in the region of £150,000.
0:48:31 > 0:48:35That valuation range from 135 to 150,000 would produce
0:48:35 > 0:48:41either a small loss, or up to a £13,000 gross profit
0:48:41 > 0:48:43before the usual selling expenses.
0:48:43 > 0:48:46I like the 150.
0:48:46 > 0:48:49- Yeah. Yeah, definitely. - Yeah, that was really good.
0:48:49 > 0:48:52At least we know all the money we spent has all been worthwhile.
0:48:52 > 0:48:54- And the profit on the end.- Yeah.
0:48:54 > 0:48:56- If we were selling but we're not selling.- Yeah.
0:48:56 > 0:49:00The project has taken a little longer than expected,
0:49:00 > 0:49:05but the end result is fantastic, so would Danny tackle something similar in future?
0:49:05 > 0:49:10I think I would. Maybe not on the scale of things, not knocking down all the walls everywhere,
0:49:10 > 0:49:12but I think I would renovate another property.
0:49:12 > 0:49:16It's been a long time, but we will definitely be in
0:49:16 > 0:49:19in the next few weeks. Great location, great house.
0:49:22 > 0:49:26We now head back to the fashionable London area of Marylebone.
0:49:26 > 0:49:29You pay a very high premium for properties
0:49:29 > 0:49:35in this neck of the woods with tiny studio flats in this building going for as much as 300,000.
0:49:35 > 0:49:38But this one was bought by part-time developer Susan
0:49:38 > 0:49:41for less than half that price.
0:49:41 > 0:49:46She paid £141,000. The reason for this was that it was
0:49:46 > 0:49:50a leasehold flat, with only 17 years left to run.
0:49:50 > 0:49:57How much research did you do in finding out how much it will cost you to renew this lease?
0:49:57 > 0:49:59I think even if I'm renting it out in the short term,
0:49:59 > 0:50:03I'll get my money back with the length of time that I've still got left with the lease.
0:50:03 > 0:50:05I'm in a position then with income coming in
0:50:05 > 0:50:09to look at extending the lease and negotiating the best deal that we possibly can.
0:50:09 > 0:50:11Susan's got a canny business head,
0:50:11 > 0:50:16and her aim is to overhaul the place and get it rented in two months.
0:50:16 > 0:50:21But despite its small size, it was eight months later that the flat was ready to be unveiled.
0:50:21 > 0:50:24So will it be worth the wait?
0:50:29 > 0:50:32The main room has been given a complete makeover.
0:50:32 > 0:50:37It has been redecorated in soft neutral colours and carpeted throughout
0:50:37 > 0:50:41with accessories and furniture to make it more appealing.
0:50:41 > 0:50:48But what has happened to that unappealing bathroom?
0:50:48 > 0:50:50In the bathroom there was originally the bath on this side here.
0:50:50 > 0:50:55That has been removed. There was a small kickback in the wall.
0:50:55 > 0:51:00The wall has been filled out so that it's flat so that all the controls
0:51:00 > 0:51:05for the shower and the pipework are concealed behind the wall.
0:51:05 > 0:51:06The washbasin has been replaced,
0:51:06 > 0:51:09in the same place as it was before.
0:51:09 > 0:51:12The WC has been rotated round, so it's on this wall now,
0:51:12 > 0:51:15to give a bit more space round it,
0:51:15 > 0:51:20and instead of putting in another bath I replaced it with a nice walk-in shower,
0:51:20 > 0:51:22which makes it look really nice and luxurious.
0:51:22 > 0:51:30I agree. And it definitely sets the right contemporary tone to attract young professionals.
0:51:31 > 0:51:35But that still leaves the tiny kitchen.
0:51:36 > 0:51:40I've managed to just about squeeze in a combination microwave oven.
0:51:40 > 0:51:44I've got a two-ring hob with an extractor above,
0:51:44 > 0:51:46a fridge with an ice box,
0:51:46 > 0:51:51and a nice sink with a nice little designer tap over it as well.
0:51:51 > 0:51:55It's certainly a clever use of the small space here.
0:51:55 > 0:51:57The storage solutions are ingenious,
0:51:57 > 0:52:00but in a flat this size, there's bound to be a compromise,
0:52:00 > 0:52:04and you'll find that in one of the main room's cupboards,
0:52:04 > 0:52:06used as a home for the washing machine.
0:52:06 > 0:52:12Meanwhile, apparently it wasn't only Susan's flat that underwent some changes.
0:52:12 > 0:52:16We did find that the walls are quite thin between the flats,
0:52:16 > 0:52:21so we did have a little accident where we went into one of the neighbour's rooms,
0:52:21 > 0:52:25and made a small little hole but the upside is
0:52:25 > 0:52:29the guy next door is having his room redecorated!
0:52:29 > 0:52:32In general, Susan and her builder had a smooth renovation.
0:52:32 > 0:52:36The flat is now fit and ready for the rental market.
0:52:36 > 0:52:39But for such a small space, surely it can't have taken eight months
0:52:39 > 0:52:41to get it up to scratch?
0:52:41 > 0:52:44But as it happened I had also started another project
0:52:44 > 0:52:48and that took four to six months to get from start to finish,
0:52:48 > 0:52:52and this wasn't such a priority as the other one was a bigger job.
0:52:52 > 0:52:57In the meantime, I'd had all the tiles, the bathroom, the kitchen, everything had been delivered here
0:52:57 > 0:53:03so as soon as the builder was ready to start, we got started and he finished within four weeks.
0:53:03 > 0:53:07That's more like it, short and sweet.
0:53:07 > 0:53:08But it seems Susan's two-year wait
0:53:08 > 0:53:13to extend her lease might also be shorter and sweeter.
0:53:13 > 0:53:15It's been a stroke of luck really,
0:53:15 > 0:53:20because quite a few other leases in the building are in exactly the same situation where they have them
0:53:20 > 0:53:25for a very short period to run, and so a group of tenants got together,
0:53:25 > 0:53:28and the managing agents have instructed surveyors to come in
0:53:28 > 0:53:33and have a look at the flats, and they are working through the process now of extending all the leases,
0:53:33 > 0:53:39- so it has saved me having to wait for the two years.- Great news.
0:53:39 > 0:53:43As yet, there's no indication about the cost of extending the lease but it does mean that,
0:53:43 > 0:53:47finances permitting, Susan can consider selling the flat much sooner than anticipated.
0:53:47 > 0:53:50And when it came to finances,
0:53:50 > 0:53:56she managed to come slightly under her budget by spending just £12,000.
0:53:56 > 0:54:01Add that to the purchase price of 141,000
0:54:01 > 0:54:05and Susan's overall outlay is 153 grand.
0:54:06 > 0:54:12Time for two local estate agents to tell us what they think.
0:54:15 > 0:54:18My first impression on coming back is it's a really big improvement.
0:54:18 > 0:54:22You know, it's a lot brighter for one, the kitchen's been done,
0:54:22 > 0:54:26the bathroom's been done, it's got a really nice feel to it.
0:54:26 > 0:54:28What I like about this property
0:54:28 > 0:54:33is the fact that it's got space enough for a pied a terre.
0:54:33 > 0:54:35It's not big, it's not small,
0:54:35 > 0:54:40it's perfect for someone who wants to come to town for weekends.
0:54:40 > 0:54:42It's a nice spacious studio, we've got good storage,
0:54:42 > 0:54:46we've got separate kitchen which is always nice in a studio flat, and the bathroom is great.
0:54:46 > 0:54:49You know, a nice big walk-in shower.
0:54:49 > 0:54:55With the flat ready to let out, what could Susan earn in rental income?
0:54:56 > 0:55:01If I was putting the property on the rental market today I'd want to put it on the market at £1,500 a month.
0:55:01 > 0:55:04I would be happy to market this property,
0:55:04 > 0:55:10for rental purposes, around £1,500, per calendar month.
0:55:10 > 0:55:12I was looking at around about 1,200,
0:55:12 > 0:55:17so I thought that was a realistic value on the rental market, but
0:55:17 > 0:55:20I haven't seen the inside of many of the properties at that value,
0:55:20 > 0:55:23so it depends what the finish is on the property and what standard
0:55:23 > 0:55:27it's at as to what you are going to get on your rental return.
0:55:27 > 0:55:34- But yeah, I'm really pleased. - Without an extended lease, the flat is only worth 140 to 150,000,
0:55:34 > 0:55:39so no profit at the moment on Susan's 153,000 outlay,
0:55:39 > 0:55:43but how would the resale value look with the lease?
0:55:43 > 0:55:50With an extended lease I would put the value of this property at approximately £325,000.
0:55:50 > 0:55:56On extended lease I would be happy to market this property
0:55:56 > 0:55:59at £350,000 to £375,000.
0:55:59 > 0:56:02I think a value of around about 350 will probably be about right,
0:56:02 > 0:56:06but obviously the real value is with the extension of the lease.
0:56:06 > 0:56:09Once the new lease in place that's really where there's value,
0:56:09 > 0:56:13from from my point of view, where I increase the value of the property.
0:56:13 > 0:56:18So depending on the cost of extending that lease, there could be a healthy profit here.
0:56:18 > 0:56:23But even without it, Susan can look forward to healthy returns in the near future.
0:56:23 > 0:56:30At a level of 1,500 per calendar month even if I just ran it for the remaining term of the lease,
0:56:30 > 0:56:33I'll still cover my costs and potentially make a profit as well.
0:56:33 > 0:56:38But obviously I want to hang onto it for long term.
0:56:38 > 0:56:41My kids would like it long-term, so I think from that point of view,
0:56:41 > 0:56:43the lease extension is something I really have to do.
0:56:46 > 0:56:48Well, that's it for now. We'll have more properties
0:56:48 > 0:56:51and more enthusiastic buyers for you next time.
0:56:51 > 0:56:54So make sure you join us then, for more Homes Under The Hammer.
0:56:54 > 0:56:56- We'll see you then. - Goodbye.- Goodbye.
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd
0:57:05 > 0:57:08E-mail subtitling@bbc.co.uk