0:00:02 > 0:00:05- Hello!- Both of us have been dealing in property for many years now
0:00:05 > 0:00:07and we've witnessed the fluctuations in the market.
0:00:07 > 0:00:09But we've been convinced of one thing,
0:00:09 > 0:00:12you can always pick up a bit of a bargain at the auction.
0:00:38 > 0:00:41We've always been fascinated, haven't we, buying under the hammer?
0:00:41 > 0:00:46Yes, the speed, the excitement, and the possibility of a deal, it's brilliant.
0:00:46 > 0:00:50Well, let's see what got our buyers hot under the collar on today's show.
0:00:50 > 0:00:53There are great views from this building plot but there's a problem
0:00:53 > 0:01:00with the wall, you could either lower it or take the whole wall about half a metre back.
0:01:00 > 0:01:05This South London flat has limited accommodation and is in a bit of a state,
0:01:05 > 0:01:10but these properties weren't built to be huge and spacious and glamorous.
0:01:10 > 0:01:15And in Lanarkshire, this bungalow has big rooms and you get the red carpet treatment.
0:01:15 > 0:01:21The thing you see the moment you come in through the door here is that view.
0:01:21 > 0:01:28- All these properties went to auction and we'll find out who bought them and what they paid...- 135?
0:01:28 > 0:01:30- when they went under the hammer. - Sold.
0:01:39 > 0:01:45I'm in beautiful Derbyshire, that's the valley of the Derwent and I'm just outside Belper.
0:01:45 > 0:01:50Now a plot of land here, that's got to be worth taking a look at, 600 square metres
0:01:50 > 0:01:56at a guide price of £95,000, right on the edge of the town, I can't wait to see it.
0:02:10 > 0:02:13Well, the plot is right by the side of one of the main roads
0:02:13 > 0:02:16into the town, right on the edge of the village as I said,
0:02:16 > 0:02:19with these fantastic open views down to the Derwent Valley,
0:02:19 > 0:02:21absolutely glorious, you can't knock it for that.
0:02:21 > 0:02:23Let's take a look.
0:02:31 > 0:02:33Belper is a small market town
0:02:33 > 0:02:36just eight miles north of Derby
0:02:36 > 0:02:39and prime plots here don't come up too often.
0:02:39 > 0:02:45The plot is fairly level, so that's great news, there are some shrubs
0:02:45 > 0:02:47and mature hedges that will need removing,
0:02:47 > 0:02:50but as plots go this looks to be a good one.
0:02:50 > 0:02:53There is however one obstacle that needs to be dealt with.
0:02:53 > 0:02:56Now one of the big stipulations in the planning permission
0:02:56 > 0:03:01concerns the access to the road, in particular this wall.
0:03:01 > 0:03:04Now basically your driveway creates a new access onto the road,
0:03:04 > 0:03:07that is going to throw up issues with the Highways Agency
0:03:07 > 0:03:11and what they want is good visibility for cars pulling out of this new driveway.
0:03:11 > 0:03:14What they've insisted is you need 100 metres visibility
0:03:14 > 0:03:17in that way and 70 metres visibility in that way.
0:03:17 > 0:03:22The only way you're going to achieve that is by either dropping the height of this wall to one metre
0:03:22 > 0:03:27above the height of the carriageway or take the whole wall about half a metre back.
0:03:27 > 0:03:31Both are expensive, clearly the first option is going to cost you less,
0:03:31 > 0:03:34but it's a factor that you've really got to put into your budget.
0:03:34 > 0:03:37The other thing is, that house there wants to share the driveway,
0:03:37 > 0:03:40so basically your entrance to the driveway has to go here.
0:03:40 > 0:03:45So what looks like just a wall could really catch you out if you weren't
0:03:45 > 0:03:49aware of the planning permission and the stipulations therein.
0:03:55 > 0:03:59You may think you can move mountains and tackle hurdles head on,
0:03:59 > 0:04:01but often you're at the mercy of the planners.
0:04:01 > 0:04:05We asked the auctioneer who will sell the property
0:04:05 > 0:04:08to give us his views on this plot
0:04:08 > 0:04:11that had an option guide price of £95,000.
0:04:11 > 0:04:15We've got a fabulous plot here right on the edge of Belper,
0:04:15 > 0:04:18literally beside the last house in the town,
0:04:18 > 0:04:23with stunning views, the sort of thing that you would never find from one year's end to the next.
0:04:25 > 0:04:29Quite a rarity hereabouts then, so how much could it sell for?
0:04:31 > 0:04:34'It's extremely difficult to value.
0:04:34 > 0:04:36'It all depends on whether'
0:04:36 > 0:04:39a builder's really going to go for it and build something super
0:04:39 > 0:04:44or whether private individuals, possibly more importantly, want to do a self-build.
0:04:44 > 0:04:50And if the latter is the case then they're not interested in profit margins, it's all about location.
0:04:50 > 0:04:56So it could make anywhere between £100,000 and £150,000, it could even make more than that.
0:04:58 > 0:05:02And when something's built here, how much could it make?
0:05:05 > 0:05:08'We've got planning consent for one detached dwelling
0:05:08 > 0:05:11'and there's no suggestion as to how large or small that dwelling might be,
0:05:11 > 0:05:13'so my guess is,'
0:05:13 > 0:05:16that you're going to go for at least four bedrooms, probably five,
0:05:16 > 0:05:18on a two and a half storied house
0:05:18 > 0:05:22and it could be worth up here anything up to £400,000.
0:05:22 > 0:05:27Well, you certainly can't knock the location of the plot, can you? But it's not without its issues,
0:05:27 > 0:05:31not least moving that wall and the shared driveway.
0:05:31 > 0:05:36But at that £95,000 guide price, I'm sure there was a lot of interest when it went under the hammer.
0:05:36 > 0:05:41Lot 77 is a residential building plot with planning permission
0:05:41 > 0:05:44for one detached dwelling, lovely situation,
0:05:44 > 0:05:46how much may I say for it?
0:05:46 > 0:05:49Start me at 100, if you will,
0:05:49 > 0:05:51£100,000 is bid, thank you.
0:05:51 > 0:05:53At £100,000...
0:05:53 > 0:05:56105, 110...
0:05:56 > 0:06:03115, 120...125, 130...135?
0:06:03 > 0:06:08135...140, £140,000...
0:06:08 > 0:06:11145...
0:06:11 > 0:06:15150. 155...
0:06:15 > 0:06:19160, 161...
0:06:21 > 0:06:24I'll take 62 on the corner, 162 I've taken on the corner...
0:06:24 > 0:06:28163 either of you? 162 and a half...
0:06:28 > 0:06:31163?
0:06:31 > 0:06:33163,500...
0:06:33 > 0:06:36164, 500...
0:06:36 > 0:06:38165, 500...
0:06:38 > 0:06:42166, and a half...
0:06:42 > 0:06:47167, and a half... 168...
0:06:47 > 0:06:50Sure?
0:06:50 > 0:06:54£167,500... going once, twice, third time.
0:06:54 > 0:06:57It's yours, sir, £167,500 thank you.
0:06:57 > 0:07:00After that keenly contested auction,
0:07:00 > 0:07:04the winning bid of £167,500 came from Mark.
0:07:06 > 0:07:10He manages garages but has built and renovated houses before.
0:07:10 > 0:07:16He purchased this lot to build a family home for himself, wife Wendy,
0:07:16 > 0:07:18daughter Tori, and twin sons.
0:07:18 > 0:07:21I met up with him to find out more.
0:07:21 > 0:07:23- Mark, good to meet you. - Nice to meet you.
0:07:23 > 0:07:26You're a man who wanted this plot of land, aren't you?
0:07:26 > 0:07:31You might say that, yes. We've been looking for a long time
0:07:31 > 0:07:33and I was going to have it no matter what.
0:07:33 > 0:07:35What price would you have stopped at?
0:07:35 > 0:07:37- £170,000.- Oh, really?
0:07:37 > 0:07:41Yes, it got close.
0:07:41 > 0:07:44Why were you willing to pay so much money for it because
0:07:44 > 0:07:46that's almost double the guide price, isn't it?
0:07:46 > 0:07:48For the views,
0:07:48 > 0:07:52look at the views round here, where would you find these views again?
0:07:52 > 0:07:55Tell me more about you and why you're buying it then.
0:07:55 > 0:07:57Well, it's going to be a family house,
0:07:57 > 0:08:00we've got a six year old daughter
0:08:00 > 0:08:03and twin boys that were one yesterday.
0:08:03 > 0:08:06I want my children to grow up in the country air with fields,
0:08:06 > 0:08:09I want just to be able to sit outside in the morning
0:08:09 > 0:08:11and have breakfast looking out over the fields,
0:08:11 > 0:08:14at night sit on the patio
0:08:14 > 0:08:20and have a glass of wine and just enjoy the views.
0:08:20 > 0:08:22So you're basically building your dream house,
0:08:22 > 0:08:24- which is going to be your home. - It is, yes.
0:08:24 > 0:08:27# I'm going to live where the green grass grows
0:08:27 > 0:08:30# Watching my corn pop up in rows
0:08:30 > 0:08:36# Every night is being tucked in close to you
0:08:37 > 0:08:39# Raise our kids where the good Lord's blessed
0:08:39 > 0:08:42# Point our rocking chairs towards the west
0:08:42 > 0:08:47# Plant our dreams where the peaceful river flows
0:08:47 > 0:08:50# Where the green grass grows. #
0:08:50 > 0:08:53Mark's dream is on the way to becoming a reality,
0:08:53 > 0:08:57he's already had plans for the house drawn up
0:08:57 > 0:08:59so I met the architect to discuss these in more detail.
0:08:59 > 0:09:02So talk me through the actual internal layout.
0:09:02 > 0:09:06What we're doing here is we're creating a front entrance door there,
0:09:06 > 0:09:08entrance hallway, nice sitting room
0:09:08 > 0:09:13with aspects on two elevations which enjoy the views, breakfast kitchen on the rear, utility room
0:09:13 > 0:09:16linked through to the garage so we can go straight from the garage
0:09:16 > 0:09:18through the utility to the kitchen.
0:09:18 > 0:09:20We've got a galleried landing,
0:09:20 > 0:09:24a complete walk-round landing, the master bedroom wanted to be here.
0:09:24 > 0:09:25Oh, wow.
0:09:25 > 0:09:27We've got a walk-through dressing room here
0:09:27 > 0:09:29and an en suite to the master suite,
0:09:29 > 0:09:30a large family bathroom,
0:09:30 > 0:09:34and then three double bedrooms, one of which has got an en suite as well.
0:09:34 > 0:09:37This certainly looks like a dream home.
0:09:38 > 0:09:41But one question I didn't ask the architect was about the shared
0:09:41 > 0:09:47access from the road, Mark was able to fill me in on his plans for this.
0:09:47 > 0:09:52Now one of the big stipulations for the outline planning of course is this road and
0:09:52 > 0:09:57the wall and the shared driveway. What you know about that and what are you going to do about that?
0:09:57 > 0:10:00What I'm actually going to do is lower in it to a metre
0:10:00 > 0:10:02because it's the easiest and quickest way of
0:10:02 > 0:10:05doing it, and the shared drive is not the end of the world,
0:10:05 > 0:10:07and the neighbours are very nice.
0:10:07 > 0:10:11Right, so what about a timescale for this great project?
0:10:11 > 0:10:16It's probably going to take a year but I would like to think I could do it inside eight months.
0:10:16 > 0:10:20So what kind of budget have you got set aside for doing this?
0:10:20 > 0:10:23I've not got a set budget in stone,
0:10:23 > 0:10:26it'll come at whatever it comes at, you know what I mean.
0:10:26 > 0:10:30So paying more than you anticipated I imagine for the plot, yes?
0:10:30 > 0:10:32It's hurt the budget.
0:10:32 > 0:10:34- Has it?- Yes.- Quite dramatically?
0:10:34 > 0:10:38Mmm, yes, I'm going to have to shop around for very,
0:10:38 > 0:10:42very cheap materials and very cheap labour.
0:10:43 > 0:10:47Let's hope Mark hasn't overstretched himself on this one,
0:10:47 > 0:10:50but there has been some welcome news too.
0:10:50 > 0:10:53The size of the plot is actually better than I thought it was.
0:10:53 > 0:10:57- Tell me more.- Well, the plan when it was first drawn up,
0:10:57 > 0:11:00the plan that was advertised, showed it to be
0:11:00 > 0:11:03two-thirds the size of what it actually is,
0:11:03 > 0:11:06so by the time I came on site with the architect
0:11:06 > 0:11:08and took all the measurements,
0:11:08 > 0:11:12we'd probably got one third more area than we actually thought we had.
0:11:12 > 0:11:15So it's meant we can put a bigger place on and have more garden.
0:11:15 > 0:11:20Great, so you bought what you thought was a smaller plot and still paid all that money for it.
0:11:20 > 0:11:25- Yes.- And you ended up getting a bigger plot.- Yes, so I am happy from that point of view.
0:11:27 > 0:11:30# Happy, happy
0:11:30 > 0:11:37# Put it in the ground where the flowers grow. #
0:11:37 > 0:11:39Every time I come up here
0:11:39 > 0:11:41and I look at these views and I stand here
0:11:41 > 0:11:44I'm even more happy every time.
0:11:44 > 0:11:46Great, lovely story, congratulations.
0:11:46 > 0:11:49Can't wait to see how you get on building it.
0:11:49 > 0:11:50Thank you.
0:11:53 > 0:11:55Well, Mark paid a lot of money
0:11:55 > 0:11:59for this plot of land but great news that it turns out to be bigger
0:11:59 > 0:12:01than he first thought, that's a major result.
0:12:01 > 0:12:05I'm a bit worried about his finances and I think he's maxing out a bit on
0:12:05 > 0:12:09how much he's going to spend to build his dream home, but wow
0:12:09 > 0:12:11what a home it will be, I can't wait to see it
0:12:11 > 0:12:14and you can find out how he gets on later in the show.
0:12:18 > 0:12:22Next up we're in London, south of the river.
0:12:22 > 0:12:26Sydenham in southeast London was transformed from a Kent countryside
0:12:26 > 0:12:31hamlet by the arrival of the railways in the Victorian era.
0:12:31 > 0:12:36It prospered due to its fresh, clean country air and grand villas.
0:12:36 > 0:12:40Today, it's definitely less fashionable but with plenty of parks,
0:12:40 > 0:12:44attractive period conversions, and decent transport links.
0:12:44 > 0:12:47It's certainly got a lot going for it and rather excitingly it
0:12:47 > 0:12:51seems to have some really reasonably priced property.
0:12:51 > 0:12:57Sydenham isn't the most glamorous of areas but it's more affordable than its neighbouring suburb
0:12:57 > 0:13:01of Crystal Palace and with the centre of London only half an hour away
0:13:01 > 0:13:05plus plenty of open spaces nearby, it could be a good area to invest in.
0:13:05 > 0:13:12The property I'm here to see is less 1850s and more 1950s, which is a bit of a shame,
0:13:12 > 0:13:19but it's on this decent road and it's just over half a mile from the train station, which isn't bad either.
0:13:19 > 0:13:22Now the lot I'm here to see is in this block, it's a two-bedroom
0:13:22 > 0:13:28flat, it's on the ground floor, and it's got a guide price of £90,000.
0:13:28 > 0:13:33For two bedrooms in London that's relatively cheap, OK it's not much
0:13:33 > 0:13:38of a looker from the outside but often it's what's inside that counts.
0:13:38 > 0:13:43It's a bit of a bonus having a nice little porch, you can stuff all your coats and hats
0:13:43 > 0:13:48and boots in there on a rainy night, and it's quite secure so I like that.
0:13:48 > 0:13:52But oh, dear it's quite small in here, there's the kitchen, there's
0:13:52 > 0:13:57the bedroom, there's the bathroom, and it's really, really dated.
0:13:57 > 0:14:01Look, you can see there is woodchip wallpaper everywhere,
0:14:01 > 0:14:05you've got polystyrene tiles up there, storage heaters,
0:14:05 > 0:14:09old gas fires, there's no plumbed in central heating anywhere,
0:14:09 > 0:14:12really old-fashioned carpet.
0:14:12 > 0:14:17Now I know I'm not sounding terribly enthusiastic and that's because I'm not,
0:14:17 > 0:14:21but these properties weren't built to be huge and spacious and glamorous,
0:14:21 > 0:14:23they are what they are, and where
0:14:23 > 0:14:29can you buy a flat in London for the guide price of £90,000?
0:14:29 > 0:14:32With that said, it's quite good.
0:14:32 > 0:14:35You've just got to keep reminding yourself of those good points.
0:14:35 > 0:14:39Yes, the flat is grubby and the two bedrooms aren't that huge,
0:14:39 > 0:14:45but if you stripped it all out there could be a solid square space to work with,
0:14:45 > 0:14:49and there's the small but welcome bonus of a little garden out back.
0:14:49 > 0:14:54It's overgrown but with the help of some secateurs it could be very pleasant.
0:14:54 > 0:14:58But just when I've talked myself into quite liking this lot, something in
0:14:58 > 0:15:01the legal pack comes along to throw a spanner in the works.
0:15:03 > 0:15:08We have a problem, a big problem and it's with the 99-year lease
0:15:08 > 0:15:11that only has 44 years left to run.
0:15:11 > 0:15:15First and foremost the property is currently unmortgageable,
0:15:15 > 0:15:17it's unlikely anybody will lend
0:15:17 > 0:15:20to you with that lease length, secondly because the lease is
0:15:20 > 0:15:26particularly short, it's going to cost a lot of money to extend and I mean a lot of money.
0:15:26 > 0:15:33In fact, I'm aware that the vendor's already looked into it and they were quoted a whopping £40,000.
0:15:33 > 0:15:36So if you buy this place you have to pay cash and that cash
0:15:36 > 0:15:43will be tied up in this place until you spend yet more cash renewing the lease so you can sell it.
0:15:43 > 0:15:46This property is not a bad investment at the right price
0:15:46 > 0:15:49but paying the right price is crucial.
0:15:49 > 0:15:53Of course paying the right price for a property is always important
0:15:53 > 0:15:57but being aware of the pitfalls here is absolutely vital.
0:15:57 > 0:16:00# You've got to look before you leap
0:16:00 > 0:16:04# There's heartaches around every corner... #
0:16:04 > 0:16:06The flat will only ever reach its full market value
0:16:06 > 0:16:10if another £40,000 is stumped up to extend that lease length
0:16:10 > 0:16:15but it is a vital move if the buyer wants to sell its arm
0:16:15 > 0:16:17and make a decent return.
0:16:17 > 0:16:21Letting it out with a short lease will only put off the inevitable fact
0:16:21 > 0:16:24that in the future, extending it will become more expensive.
0:16:24 > 0:16:28So although it may not be impossible to find a lender,
0:16:28 > 0:16:30it could prove a real challenge.
0:16:32 > 0:16:35So that £90,000 guide price isn't looking such a steal
0:16:35 > 0:16:40but to get a second opinion we asked along a local property expert
0:16:40 > 0:16:44for his thoughts on this short lease problem.
0:16:44 > 0:16:47There has been some investigation made and it would be around
0:16:47 > 0:16:51£40,000 to possibly renew the lease, we're up to that sort of figure.
0:16:51 > 0:16:53Now there are two ways of doing it,
0:16:53 > 0:16:56that figure could be just plucked from the freeholder, so we need to
0:16:56 > 0:17:00get two things done, one speak to a surveyor to get it valued and get a
0:17:00 > 0:17:04quick valuation, then they need to speak to a specialist in leases
0:17:04 > 0:17:07to look at going to the LVT, Leasehold Valuation Tribunal,
0:17:07 > 0:17:11and see if the valuation is lower, argue that through the LVT
0:17:11 > 0:17:12and through court.
0:17:12 > 0:17:15So there are options available that could make extending the lease less
0:17:15 > 0:17:19painful but if the lease wasn't extended,
0:17:19 > 0:17:21what would the flat be worth?
0:17:21 > 0:17:25If the property was renovated but retained the short lease,
0:17:25 > 0:17:28realistically it would be looking at about £120,000.
0:17:28 > 0:17:31And with an extended lease?
0:17:31 > 0:17:34With a new lease, the property could increase in value to
0:17:34 > 0:17:38about £150-160,000 in value, which is market level.
0:17:38 > 0:17:40How about the rental possibilities?
0:17:40 > 0:17:44If I had to put this property up for rent in good condition in the current market,
0:17:44 > 0:17:47you would be looking at some between £600-700 per calendar month.
0:17:47 > 0:17:51A decent home, a little dinky but decent.
0:17:51 > 0:17:54However that lease does need to be renewed if
0:17:54 > 0:18:00ever you want to sell it on or release your money, and that is going to require a significant outlay.
0:18:00 > 0:18:02I just hope whoever bought this at auction
0:18:02 > 0:18:06was aware of the potential pitfalls, let's find out who that was.
0:18:08 > 0:18:10Lot 20, a two-bed purpose-built garden flat,
0:18:10 > 0:18:12requires a bit of improvement.
0:18:12 > 0:18:18Over to you, where would you like to start, £90,000?
0:18:18 > 0:18:22Thank you, 90,000 at the back... 91?
0:18:22 > 0:18:2791... 92, 93...
0:18:27 > 0:18:2994, 95...
0:18:29 > 0:18:3196, 97...
0:18:31 > 0:18:3498, 99...
0:18:34 > 0:18:36100, 101...
0:18:36 > 0:18:39102, 103...
0:18:39 > 0:18:42104, 105...
0:18:42 > 0:18:46104 to you, 105 elsewhere?
0:18:46 > 0:18:48104... first time,
0:18:48 > 0:18:50second time,
0:18:50 > 0:18:53third and last time if you're all done...
0:18:53 > 0:18:56sold 104, well bought.
0:18:56 > 0:19:01That successful bid of £104,000 was made by Sam.
0:19:01 > 0:19:05He's a South London lad who runs a building company with his dad
0:19:05 > 0:19:08and this is his first property investment.
0:19:08 > 0:19:10I met him at the flat to find out more.
0:19:13 > 0:19:16- Sam, congratulations.- Cheers. - Why did you want to buy this flat?
0:19:16 > 0:19:20Invest my money in something instead of spending it elsewhere.
0:19:20 > 0:19:23So have you been busy spending all your money! Are going to get sensible?
0:19:23 > 0:19:26I'm only 22 and I thought why not get into property now.
0:19:26 > 0:19:31Are you interested in property or is it something you thought, "I'd be sensible if I buy something?"
0:19:31 > 0:19:36No, well I've been a builder, I've just always loved working on houses and all that so I just thought
0:19:36 > 0:19:38why not, a little place like this.
0:19:38 > 0:19:39How long have you been a builder?
0:19:39 > 0:19:44- Six years now.- So you've got quite a good knowledge of property.
0:19:44 > 0:19:48Yes, do a lot of work with the Housing Association, so I've worked
0:19:48 > 0:19:50six years in people's houses so I'm used to it now.
0:19:50 > 0:19:53- Did you view this property prior to the auction?- Yes.
0:19:53 > 0:19:57- What did you think when you first walked in?- Perfect size really,
0:19:57 > 0:19:59I didn't want nothing too big it's my first project.
0:19:59 > 0:20:05I've got to say it's brilliant at the age of 22 you've got yourself on the property ladder,
0:20:05 > 0:20:09and it is a neat and tidy project for you because it is just a refurb.
0:20:09 > 0:20:10Is that what you were after,
0:20:10 > 0:20:15- something that you could completely...- Yes, nothing too major but nothing too little,
0:20:15 > 0:20:16so I thought yes, this will do.
0:20:18 > 0:20:20At the tender age of just 22,
0:20:20 > 0:20:23Sam's taken that first difficult step onto the property ladder
0:20:23 > 0:20:27and is hoping that this will be the first of many developments.
0:20:27 > 0:20:32But while this place will do, there's no avoiding the subject of the lease.
0:20:33 > 0:20:36- So, Sam, you paid £104,000 on auction day.- Yes.
0:20:36 > 0:20:40Now that is relatively cheap for a flat in London.
0:20:40 > 0:20:43Yes, it was my mistake, the lease.
0:20:43 > 0:20:47There's about 40 years left on the lease so that's why it was pretty cheap,
0:20:47 > 0:20:49but hopefully we'll get over that.
0:20:49 > 0:20:51So you obviously didn't do any research?
0:20:51 > 0:20:53- No.- Didn't read the legal pack.
0:20:53 > 0:20:57- Briefly.- And just went to auction and bought it.- That's it, yes.
0:20:57 > 0:21:00When did you find out about the lease, tell me the story.
0:21:00 > 0:21:05That day, after I've bought it and I actually went through it all and realised then.
0:21:05 > 0:21:11I didn't know much about leases and all that until I spoke to my solicitor, I was just, "Oh!"
0:21:11 > 0:21:12It come to me then.
0:21:19 > 0:21:23'Well, that experience will give Sam a crash course in the pitfalls of leases,
0:21:23 > 0:21:27'but all his woes could have been prevented if he'd read the legal pack,
0:21:27 > 0:21:31'and that little oversight could cost him dear.'
0:21:31 > 0:21:37The big question is how much money have you allowed to renew the lease, how much will it cost you?
0:21:37 > 0:21:42Between £5,000-£10,000 - don't want to go no more than that.
0:21:42 > 0:21:47I'm hoping it's not going to be more but I've got a feeling it might be more than that.
0:21:47 > 0:21:51For the price we got it, it was cheap, if it is,
0:21:51 > 0:21:55then we'll have to find the money somewhere, but it's not much of a problem.
0:21:55 > 0:22:02Sam seems very relaxed about the potential costly problems ahead, but unfortunately it didn't end there.
0:22:02 > 0:22:09The short lease meant the first mortgage he applied for was turned down and he had to put more cash in
0:22:09 > 0:22:11to secure a loan.
0:22:11 > 0:22:14So did you start to panic and start to think, "Oh, no"?
0:22:14 > 0:22:18Yes, it was getting stressful then because the contract date was coming up
0:22:18 > 0:22:23and it was literally a couple of days before the contract date was to be renewed.
0:22:23 > 0:22:27Remember, if you don't complete within the allotted time, usually 28 days,
0:22:27 > 0:22:31you forfeit the deposit you've paid to the auction house.
0:22:31 > 0:22:33In Sam's case that would have been £10,000.
0:22:33 > 0:22:39A painful lesson, but in the end he DID get a mortgage even though it was at a higher rate.
0:22:39 > 0:22:46His long-term plan is to rent out the flat or live in it for a year and then sell on but for now,
0:22:46 > 0:22:49with his experience and contacts in the building trade,
0:22:49 > 0:22:54Sam plans to renovate the flat totally on a budget of £10,000.
0:22:54 > 0:22:56What sort of look is he after?
0:22:56 > 0:23:01Obviously just normal walls and then we'll see, none of this polystyrene stuff,
0:23:01 > 0:23:04bog-standard kitchen, bathroom, and that's about it, really.
0:23:04 > 0:23:09- Plain carpets throughout. - So it's just going to look neat and tidy.- Yes.
0:23:09 > 0:23:14- How will you fit it in? You're busy working.- A couple of hours a night and weekends.
0:23:14 > 0:23:17- Congratulations! Can't wait to see it all shiny and new.- Me and all.
0:23:17 > 0:23:19- Well done.- Thanks very much, cheers.
0:23:21 > 0:23:27Well, money makes the world go round or so they say, and Sam obviously agrees.
0:23:27 > 0:23:30Still, good on him for investing his cash,
0:23:30 > 0:23:37but I am so worried about that lease extension because that could cost him much, much more than he thinks.
0:23:37 > 0:23:40You can find out later in the programme how it goes.
0:23:40 > 0:23:46Coming up in Lanarkshire, if you think you've sniffed out a property bargain, beware.
0:23:46 > 0:23:50It's the whiff from the nearby landfill site, gulp.
0:23:51 > 0:23:58We go back to check on Sam in Sydenham, what has been his biggest challenge?
0:23:58 > 0:24:01The lease obviously at the moment.
0:24:02 > 0:24:07But first we return to Derbyshire where progress has been slow.
0:24:07 > 0:24:11Originally I was hoping to have the house built within 12 months.
0:24:13 > 0:24:18Back to Belper now where Mark, who manages garages,
0:24:18 > 0:24:22had paid £167,500 for this plot.
0:24:23 > 0:24:28It had stunning views and planning consent for an impressive detached house.
0:24:28 > 0:24:32Mark and his wife Wendy were going to make it their family home.
0:24:38 > 0:24:43But apart from building the house, Mark also had to meet strict rules about the boundary wall.
0:24:46 > 0:24:50Now one of the big stipulations for the outline planning is this road
0:24:50 > 0:24:55and the wall and the shared driveway, what are you going to do about that?
0:24:55 > 0:25:01What I'm going to do is lower it to a metre because it's the easiest and quickest way of doing it,
0:25:01 > 0:25:06and the shared drive, it's not the end of the world and the neighbours are very nice.
0:25:06 > 0:25:13Well, it's now a year and nine months later and we met up with the family again.
0:25:18 > 0:25:23The plot of land now boasts a superb four-bedroom detached house.
0:25:26 > 0:25:31This magnificent four-bedroom property is built from local Derbyshire stone
0:25:31 > 0:25:35and has been constructed to a very high standard.
0:25:39 > 0:25:47The finish inside is just as impressive with superb oak doors, staircase, and oak skirting boards.
0:25:49 > 0:25:53The house is almost ready to move into, there is a dual-aspect,
0:25:53 > 0:25:57large living room and a separate study,
0:25:57 > 0:26:02plus a utility room and, at the back, a magnificent kitchen's been installed.
0:26:06 > 0:26:12It lets in lots of light and as Mark explains, the place was all purposely designed for family life.
0:26:14 > 0:26:18In the kitchen here we've tried to make it as usable as possible
0:26:18 > 0:26:26and as family-friendly as possible with enough cupboard space and worktop space for Wendy to cook.
0:26:26 > 0:26:30We've put a hot tap in which means we'll never need a kettle.
0:26:30 > 0:26:33We've put a breakfast bar in so that we can have the meals in here
0:26:33 > 0:26:37and open the doors in the summer to look at the fields.
0:26:37 > 0:26:42Kept it open plan so that we can have the children in there watching television and playing,
0:26:42 > 0:26:47so we can keep an eye on them, so it will all work very nice for the family.
0:26:47 > 0:26:51The living accommodation is bigger up on the first floor
0:26:51 > 0:26:54as it extends over the double garage.
0:26:54 > 0:27:00There are four double bedrooms, two with en suites...
0:27:02 > 0:27:10..and the master bedroom has a separate dressing area, plus a separate family bathroom.
0:27:10 > 0:27:13Everywhere the fixtures and the build quality are top-notch.
0:27:16 > 0:27:21There's still a bit of finishing off to do and then finally the family will move in.
0:27:21 > 0:27:27Originally I was hoping to have the house built
0:27:27 > 0:27:31and us actually moved in and living in it within 12 months.
0:27:31 > 0:27:35Because of two bad winters, it's taken 22 months so, really,
0:27:35 > 0:27:39we're ten months over where I really wanted to be.
0:27:41 > 0:27:47Apart from the weather, planning permission took a bit longer as Mark reapplied to put two drives in,
0:27:47 > 0:27:53one for the new house and a separate one for the neighbour, rather than a shared entrance.
0:27:53 > 0:27:59That was agreed but the issue of the dry stone wall wasn't negotiable.
0:27:59 > 0:28:04When I first bought the plot of land this wall was twice as high,
0:28:04 > 0:28:07and to get planning permission to build the house on here,
0:28:07 > 0:28:10I've had to lower it to half the size,
0:28:10 > 0:28:13so that when you came out, you've got visibility both sides.
0:28:13 > 0:28:17Then I had to take the wall down,
0:28:17 > 0:28:21right down to next door's house as well
0:28:21 > 0:28:24and put a new wall in, between us and the next-door neighbour
0:28:24 > 0:28:27out of the dry stone walling to match in.
0:28:28 > 0:28:33It's a big house which sits very comfortably on the plot,
0:28:33 > 0:28:38the lawned garden at the back is lovely and the views from the rear windows are delightful.
0:28:42 > 0:28:46Mark hasn't been able to spend as much time on site as he would have liked
0:28:46 > 0:28:49and admits that not being on hand at all times slowed down the build.
0:28:49 > 0:28:55What effect did the overrun have on the budget - how much HAS it cost?
0:28:55 > 0:29:01I think I'll have spent somewhere between £350,000-£400,000.
0:29:01 > 0:29:06So with an overall investment of around £400,000 on this project,
0:29:06 > 0:29:11including £167,500 for the purchase of the plot,
0:29:11 > 0:29:17Mark really has put a lot into making this a perfect family home.
0:29:17 > 0:29:20His daughter Tori can't wait to move in.
0:29:21 > 0:29:24It'll be exciting to live in a new surrounding.
0:29:24 > 0:29:28I like it because it's a lot bigger
0:29:28 > 0:29:32and it's just going to be very nice.
0:29:32 > 0:29:38We asked two local estate agents to come and give us their opinion
0:29:38 > 0:29:40of this house with a view.
0:29:40 > 0:29:43'It's a nice house, it's set well on the plot,'
0:29:44 > 0:29:48obviously a great position. It looks like it's been well built too.
0:29:48 > 0:29:50I like the position of the house.
0:29:50 > 0:29:54That is what's sold the plot and what would sell the house now.
0:29:54 > 0:29:57The kitchen is a great feature of the property,
0:29:57 > 0:30:00there's plenty of natural light, it's quite funky, which is nice.
0:30:00 > 0:30:04I think what the people have done in the design of this property
0:30:04 > 0:30:08is they've put some big windows in the big rooms to take advantage of those views
0:30:08 > 0:30:09and that's really special.
0:30:09 > 0:30:12How much is the property now worth?
0:30:12 > 0:30:15Mark paid £167,500 at the auction
0:30:15 > 0:30:21and thinks his total investment could end up at around £400,000.
0:30:22 > 0:30:27In the current climate, I think this property would go on to the market at £495,000.
0:30:27 > 0:30:29If I put this property on the market for sale,
0:30:29 > 0:30:32I would advertise it just shy of £500,000
0:30:32 > 0:30:38and I would expect an offer between £450- 475,000.
0:30:39 > 0:30:44That valuation range between £450-495,000 would mean
0:30:44 > 0:30:49a gross profit of between £50-95,000 before the usual selling expenses.
0:30:49 > 0:30:53What does Mark think of those estimates?
0:30:54 > 0:30:57That's probably what I thought it was worth,
0:30:57 > 0:31:01but looking around at what's out there and what's for sale,
0:31:01 > 0:31:05and quality and position and location and views,
0:31:05 > 0:31:09there isn't anything at £500,000 that's as good as this.
0:31:09 > 0:31:13Once they've moved in, Mark and the family will stay put...
0:31:13 > 0:31:15or will they?
0:31:15 > 0:31:18I don't think I'm going to live here forever,
0:31:18 > 0:31:21Wendy and the children probably would want to.
0:31:21 > 0:31:25Now I've done it, I'm thinking I could do this again,
0:31:25 > 0:31:27and I'm going to look around for another piece of land
0:31:27 > 0:31:31and probably build another one, but don't tell the wife.
0:31:34 > 0:31:39Today I am in the Cumbernauld area, an overspill town for Glasgow.
0:31:39 > 0:31:46It was created in the 1950s and made famous in the romantic comedy Gregory's Girl.
0:31:47 > 0:31:52Just a few miles away from the town centre of Cumbernauld is the little village of Greengairs,
0:31:52 > 0:31:57it's got everything you want - Post Office, shop, local school.
0:31:57 > 0:32:01And you certainly can't complain about the beautiful rural location
0:32:01 > 0:32:04and yet you've got easy access to both Glasgow and Edinburgh.
0:32:04 > 0:32:07What more could you possibly want? How about this?
0:32:07 > 0:32:12It's a two-bed bungalow it had a guide price of £100-130,000, let's take a look inside.
0:32:14 > 0:32:18The bungalow is the front one of two separated by their garages.
0:32:18 > 0:32:21So what's in store?
0:32:21 > 0:32:25Through the front door, a nice, big entrance hall, I like that.
0:32:25 > 0:32:27In-built storage, which is always useful.
0:32:27 > 0:32:31Sometimes you feel a bit cramped when you come into bungalows but not in this one.
0:32:31 > 0:32:33Bedrooms down there, kitchen there,
0:32:33 > 0:32:37and then through into your main living room area.
0:32:37 > 0:32:41Bit of a feature fireplace. Nice, big space, but the thing is,
0:32:41 > 0:32:45you see, the moment you come in through the door here is that view.
0:32:45 > 0:32:49How fantastic is that to have this beautiful picture window?
0:32:49 > 0:32:52In fact, why not put a picture frame round it, almost?
0:32:52 > 0:32:54Cos that is gorgeous.
0:32:54 > 0:32:57That sells this place for me straight away.
0:32:57 > 0:33:00# All I want is a room with a view
0:33:00 > 0:33:03# A sight worth seeing, a vision of you... #
0:33:03 > 0:33:06Even on this overcast day, the view's great,
0:33:06 > 0:33:09there are three mountain ranges in the distance.
0:33:09 > 0:33:14And the red carpet treatment continues in the very blue kitchen.
0:33:15 > 0:33:19The units look almost new, there's a range cooker,
0:33:19 > 0:33:25a separate utility room, and the guide price was £100-130,000.
0:33:25 > 0:33:28The first of the two bedrooms has fitted wardrobes
0:33:28 > 0:33:32and, like the rest of the bungalow, is ready to move into.
0:33:32 > 0:33:35I'm aving a bit of a struggle trying to find ways to improve this place!
0:33:35 > 0:33:39A bit of carpeting here and there, bit of a paint job, but other than that...
0:33:39 > 0:33:42Well, here's one thing you might consider.
0:33:42 > 0:33:45At some stage, this was actually a three-bedroom bungalow.
0:33:45 > 0:33:49This huge, great second bedroom here was originally two bedrooms.
0:33:49 > 0:33:53There was a dividing wall here, a stud partition,
0:33:53 > 0:33:56and previously door into this bedroom would've been there.
0:33:56 > 0:34:02Now if you wanted to, you might consider going back to that way of being being,
0:34:02 > 0:34:04I guess it's about talking to the local estate agents,
0:34:04 > 0:34:07finding out how much that would add value or detract from it.
0:34:07 > 0:34:09At the end of the day, if it's your house -
0:34:09 > 0:34:12do you want two big bedrooms or three smaller ones?
0:34:12 > 0:34:16Your choice, but it is at the something that you could do to this place.
0:34:17 > 0:34:23This is a great-looking property which appears to be in excellent condition,
0:34:23 > 0:34:26even the bathroom looks like it's been recently refitted.
0:34:26 > 0:34:29The only downside is that there's no bath
0:34:29 > 0:34:33but that's being a tad picky, otherwise it's a big thumbs up.
0:34:33 > 0:34:37So, really, apart from a few bits and pieces,
0:34:37 > 0:34:40nothing to criticise about the inside of the bungalow,
0:34:40 > 0:34:44but come out the back here and a few issues,
0:34:44 > 0:34:47first of which is you've got oil-fired central heating
0:34:47 > 0:34:49but the cooker is actually powered by propane
0:34:49 > 0:34:53and that's not necessarily the most cost-effective way of doing things,
0:34:53 > 0:34:56but there's probably no mains gas here so maybe no option.
0:34:56 > 0:34:58This is your garden.
0:34:58 > 0:35:02Not a bad-sized space, but when you come out here,
0:35:02 > 0:35:05the second issue... You can't see it...
0:35:07 > 0:35:09..but you can smell it.
0:35:09 > 0:35:12Take in a deep breath.
0:35:12 > 0:35:15What you get? The beautiful Scottish countryside?
0:35:15 > 0:35:16HE INHALES
0:35:16 > 0:35:21No, it's the whiff from the nearby landfill site. Gulp.
0:35:21 > 0:35:26# Lord I smell trouble ahead of me
0:35:26 > 0:35:29# Oh, yeah... #
0:35:30 > 0:35:35One thing that may reduce the impact of the occasional nasty niff
0:35:35 > 0:35:38is the fact that Greengairs landfill gas collection system
0:35:38 > 0:35:41is used to generate electricity for the National Grid,
0:35:41 > 0:35:44so it's playing its part in saving energy.
0:35:44 > 0:35:47To find out more about the prospects for this bungalow,
0:35:47 > 0:35:51we invited a local estate agent to give us his expert opinion.
0:35:53 > 0:35:56If someone's looking for a semi-rural location,
0:35:56 > 0:35:58I would say that this is definitely a positive,
0:35:58 > 0:36:00something a bit out of the way.
0:36:00 > 0:36:03if they don't want to have a lot of people round about them
0:36:03 > 0:36:06and a bit quieter, then I'd say this is excellent.
0:36:06 > 0:36:09Apart from being close to the motorways, there's a good bus service
0:36:09 > 0:36:15plus stations in Airdrie and Cumbernauld with train links to Glasgow, Edinburgh, and beyond.
0:36:15 > 0:36:19So with that in mind, what kind of rent could the property generate?
0:36:19 > 0:36:22I'd say, once renovated, if you converted one of the bedrooms
0:36:22 > 0:36:28and make it into a three-bedroom, I would say you're potentially looking at £650 per calendar month.
0:36:28 > 0:36:33After some refurbishment, how much could it be worth on the open market?
0:36:33 > 0:36:38Once renovated, on the market, you're looking about £110,000.
0:36:38 > 0:36:41# Oh, yeah... #
0:36:45 > 0:36:48So absolutely nothing to dislike about this place,
0:36:48 > 0:36:52apart from the occasional whiff from the nearby landfill site.
0:36:52 > 0:36:57Still, will it prove to be the sweet smell of success for whoever bought it?
0:36:57 > 0:36:59Let's go to the auction and find out.
0:36:59 > 0:37:01The bungalow was one of the later lots on auction day,
0:37:01 > 0:37:07- which explains the empty seats. - Let's look for a start say £90,000?
0:37:07 > 0:37:0885.
0:37:08 > 0:37:1280, phonne bid, you heard it. £80,000.
0:37:12 > 0:37:1682, thank you. On the aisle, £82,000. 84 on the phone, just two of you at the moment.
0:37:16 > 0:37:2086? £86,000. £88,000 on the telephone.
0:37:20 > 0:37:2490,000? Go 89 if it helps you.
0:37:24 > 0:37:28£89,000 back in. 90,000 will be the next bid if you want to take that?
0:37:28 > 0:37:32£90,000 it is on the phone. It looks like a resigned shake of the head.
0:37:32 > 0:37:34£91,000? Anyone else coming in?
0:37:34 > 0:37:36Looking for 91,000.
0:37:36 > 0:37:38Got 90,000, it's on the phone.
0:37:39 > 0:37:44No, well, I can't sell at that level, I'm afraid. We are short of the reserve.
0:37:44 > 0:37:50But Tracy, who was bidding for the property, made an offer after the auction and it was accepted.
0:37:53 > 0:37:59I met up with her and her daughter, Sarah, at the bungalow to find out exactly what happened.
0:38:02 > 0:38:05- Tracy, Sarah, lovely to meet you. - Hi.- Congratulations.
0:38:05 > 0:38:07- Thank you. - So what happened there, then?
0:38:07 > 0:38:12Well, it didn't meet the reserve so I had to sit back down and see what happened.
0:38:12 > 0:38:15But the auctioneer came and spoke to me
0:38:15 > 0:38:19and said because I was in the auction room, he could put a price to the vendor
0:38:19 > 0:38:24and ask if he would accept it, whereas the person on the telephone, who was doing a telephone bid,
0:38:24 > 0:38:28would have to seek legal advice, you know, go to get to a lawyer and get a lawyer's letter, etc.
0:38:28 > 0:38:31So I made an offer and it was accepted.
0:38:31 > 0:38:35So you stopped at £91,000, you eventually bought it for?
0:38:35 > 0:38:3795.
0:38:37 > 0:38:39Why didn't you carry on up to 95 in the auction?
0:38:39 > 0:38:41Cos I hadn't viewed the property.
0:38:41 > 0:38:46I didn't know what inside was like, I didn't know if it was viable to put this much money into a place
0:38:46 > 0:38:50and have to then spend another maybe £50,000 if you're doing the ceilings and walls.
0:38:50 > 0:38:53Wow. So, at what point did you up your offer?
0:38:53 > 0:38:55When the auctioneer came and said to me.
0:38:55 > 0:39:00So you still hadn't seen it, so you still upped it by £4,000
0:39:00 > 0:39:02and still didn't know if it had a roof or a ceiling.
0:39:02 > 0:39:06No, but I thought, "Don't lose it for £4,000, give a nice, round number." I like fives.
0:39:08 > 0:39:12She knows the area well - she's lived and worked in the town for many years,
0:39:12 > 0:39:16and I wanted to find out more about her business interests around here.
0:39:18 > 0:39:22I'm the postmistress and the local shopkeeper. I also run the pallet yard as well.
0:39:22 > 0:39:25The pallet yard and a postmistress?
0:39:25 > 0:39:30Yes, my father has a pallet business so when I started there, that's what I do.
0:39:30 > 0:39:33I've been known to drive forklifts and trucks.
0:39:33 > 0:39:35You've got an HGV licence?
0:39:35 > 0:39:36Yes, I have class two.
0:39:36 > 0:39:40I know, I know, and I do this - properties - for a pension.
0:39:40 > 0:39:44- Busy, I'm busy.- How many other members of the family have you got?
0:39:44 > 0:39:49I have three daughters, Sarah's my oldest. I have a 19-year-old, Emma, and an 18-year-old, Amy.
0:39:49 > 0:39:52There's no stopping Tracy. Apart from everything else,
0:39:52 > 0:39:58she's currently installing a kitchen in the Post Office and the shop.
0:39:58 > 0:40:02The bungalow has fabulous far-reaching views to three mountain ranges
0:40:02 > 0:40:06but Tracy bought the property without seeing inside.
0:40:06 > 0:40:08So did she get a shock?
0:40:08 > 0:40:12You walked through the door for the first time having bought it, what did you think?
0:40:12 > 0:40:17I was actually really happily shocked because the two main rooms
0:40:17 > 0:40:21were really nice, the bathroom and kitchen, very little to do.
0:40:21 > 0:40:25- Sarah, what's your involvement in this? - Not very much this time round.
0:40:25 > 0:40:27I'm hoping she's going to go in the nesting season.
0:40:27 > 0:40:29Tell me more. What..?
0:40:29 > 0:40:32- She's going to do cleaning. - Cleaning mainly this time.
0:40:32 > 0:40:35- You're about to have a baby? - Yeah.- How long is it till it's due?
0:40:35 > 0:40:39- Ten weeks left. - So you really are going to be slightly out of action
0:40:39 > 0:40:44- in terms of helping out. Or will Mum have you...?- She will, she'll have me stripping the wallpaper.
0:40:46 > 0:40:52It'll be Sarah's second child but it sounds like tireless Tracy won't give Sarah much time off.
0:40:54 > 0:40:59What do you thinkof your mum's various ventures? She sounds like an incredible lady.
0:40:59 > 0:41:01She's crazy.
0:41:01 > 0:41:03So tell me what you're going to do then to sort it out.
0:41:03 > 0:41:08Every room needs the wallpaper taking off and get rid of the 80s Artex kind of thing.
0:41:08 > 0:41:11There's some dodgy floorboards in the hall.
0:41:11 > 0:41:14I'll have to lift the wooden floor that's down to see why it's moving.
0:41:14 > 0:41:18It has two bedrooms but it would have been a three-bedroom bungalow.
0:41:18 > 0:41:21We'll put it back to three bedrooms. It makes sense for renting out.
0:41:21 > 0:41:24So what about the fireplace in here? It's not to everyone's taste.
0:41:24 > 0:41:27No, but some people think it's nice.
0:41:27 > 0:41:31Somebody came into the shop and told us it was a fireplace to die for.
0:41:31 > 0:41:34- Have you told them that they can have it?- I have offered to people...
0:41:34 > 0:41:35THEY LAUGH
0:41:35 > 0:41:38..but nobody wants it.
0:41:38 > 0:41:41# Ooh, ooh that smell
0:41:43 > 0:41:45# Can't you smell that smell... #
0:41:45 > 0:41:51The only negative I came across was a little bit of a whiff from the landfill site, isn't there?
0:41:51 > 0:41:53I think today's just been an off day.
0:41:53 > 0:41:56There is a landfill site about two miles away
0:41:56 > 0:41:59but that'll be ceasing soon because the landfill is moving to an incinerator.
0:41:59 > 0:42:03- Right.- So that'll be all getting covered over, so that should reduce.
0:42:03 > 0:42:06So what's the budget for doing the work?
0:42:06 > 0:42:10Because it's only cosmetic, I think we'll be within £6,000 because it's really just...
0:42:10 > 0:42:16every room having to get plastered on the ceilings, and the flooring for the living room and the hall.
0:42:16 > 0:42:20- I've got up to £10,000 in case there's a major issue. - And what kind of timescale?
0:42:20 > 0:42:23- Probably about ten weeks. - Congratulations.- Thank you.
0:42:23 > 0:42:27Good luck, and good luck to you in the impending birth of your son or daughter,
0:42:27 > 0:42:30- and I look forward to seeing how you get on.- Oh, I bet you do!
0:42:30 > 0:42:32- Congratulations.- Thank you.
0:42:32 > 0:42:37Well, the clock is definitely ticking, will Tracy and the family team
0:42:37 > 0:42:41manage to give this place a new lease of life
0:42:41 > 0:42:44before Sarah produces life of a different sort?
0:42:44 > 0:42:46You can find out later in the show.
0:42:49 > 0:42:52Now, renovating property can be a very time-consuming thing.
0:42:52 > 0:42:55Especially if things don't go to plan.
0:42:55 > 0:42:59So did our buyer's plans get off the drawing board? Let's find out.
0:43:00 > 0:43:06Back now to Sydenham in South London, where 22-year-old builder Sam
0:43:06 > 0:43:12had bought this ground floor two-bedroom garden flat for £104,000.
0:43:12 > 0:43:16It was his first investment purchase and he was delighted with the price,
0:43:16 > 0:43:22but he'd failed to spot in the paperwork that there were only 44 years left on the 99-year lease,
0:43:22 > 0:43:26that meant it would be tough to get a mortgage.
0:43:26 > 0:43:32The lease could be extended but rookie developer Sam wasn't sure how much that would cost.
0:43:34 > 0:43:38Big question is, how much money have you allowed to renew the lease?
0:43:38 > 0:43:40How much do you think it'll cost you?
0:43:40 > 0:43:45Between £5,000-10,000. I don't want to go no more than that.
0:43:45 > 0:43:48Ooh, I'm really hoping it's not going to be more than that
0:43:48 > 0:43:50but I've got a feeling it might be!
0:43:50 > 0:43:53Well, for the price we got it at - because it was quite cheap -
0:43:53 > 0:43:57if it is, then we'll have to find the money somewhere but...
0:43:57 > 0:43:59still not too much of a problem.
0:43:59 > 0:44:05Four months have passed when we meet Sam back at the flat to see how he's been getting on.
0:44:05 > 0:44:07MUSIC: "Fill My Little World" by The Feeling
0:44:07 > 0:44:13The front looks very similar but the overgrown back garden has been cleared and new fencing put up.
0:44:18 > 0:44:23Inside, the bedroom that overlooked the garden had lost the wardrobe.
0:44:23 > 0:44:27It's been decorated and is just awaiting the choice of flooring.
0:44:32 > 0:44:36Work's well advanced on the living room at the front.
0:44:36 > 0:44:40The dated fireplace has been removed and laminate flooring been laid.
0:44:42 > 0:44:48The kitchen that overlooked the garden has been stripped bare and decorated...
0:44:49 > 0:44:51..but Sam decided on a layout change.
0:44:53 > 0:44:57This used to be the front bedroom, now turned into the kitchen.
0:44:57 > 0:45:00It wasn't too much of a major problem moving everything around.
0:45:00 > 0:45:05Obviously, we've put in cupboards, oven, microwave, dishwasher.
0:45:05 > 0:45:07Yeah, so I'm really happy with it now.
0:45:07 > 0:45:11The dated avocado bathroom suite has gone to the skip
0:45:11 > 0:45:15and, judging by Sam's new tiles, it's going to look a whole lot better.
0:45:16 > 0:45:22A corner shower unit is about to be plumbed in but there's no sign of a bath.
0:45:22 > 0:45:26So the front of the flat now has the living room and the kitchen,
0:45:26 > 0:45:30and the two bedrooms are now next to each other at the back, overlooking the garden.
0:45:32 > 0:45:36It was a bit of a mess as a kitchen but, obviously, we've moved the kitchen to the front,
0:45:36 > 0:45:43blocked the doorway up, rerun the gas to the front - it's a bit extra cost to the property.
0:45:43 > 0:45:47I think losing the kitchen door that led out to the garden was a mistake,
0:45:47 > 0:45:50as you now have to walk down the side path to get to it.
0:45:52 > 0:45:5522-year-old Sam has been a builder for six years, since leaving school.
0:45:55 > 0:46:01He owns a small building firm with his dad and has been doing the refurbishment in his spare time.
0:46:01 > 0:46:03What's been the hardest part?
0:46:03 > 0:46:07The lease, I would have said at the moment.
0:46:07 > 0:46:13I'm used to this stuff, day in, day out, but I suppose all the paperwork side of it.
0:46:13 > 0:46:19I was worried that the £5,000-10,000 Sam had budgeted to extend the lease wouldn't be enough.
0:46:19 > 0:46:24He thought he'd find the extra money somewhere but he got a big shock when he contacted the freeholder.
0:46:27 > 0:46:32They come back, they wanted £40,000-odd to renew the lease. I just haven't got that at the moment
0:46:32 > 0:46:35but in a couple of years' time, I'll go for it again.
0:46:35 > 0:46:40During that time, I'm going to rent it out and see how it goes from there.
0:46:40 > 0:46:47So, the lease continues to count down from just 44 years and Sam can't afford to extend it.
0:46:47 > 0:46:51But how has his budget fared for the work? Has that stayed on track?
0:46:51 > 0:46:57I allowed for 10,000 at the beginning. I've gone over that.
0:46:57 > 0:47:02About 13 at the moment, probably got another couple of grand more.
0:47:04 > 0:47:07Let's see what two local estate agents think
0:47:07 > 0:47:09of Sam's first development venture.
0:47:09 > 0:47:11The property so far is not quite finished
0:47:11 > 0:47:13but you can see the quality - nice flooring,
0:47:13 > 0:47:16colours look quite nice, nice kitchen.
0:47:16 > 0:47:19I think it should be a very presentable property.
0:47:19 > 0:47:21The problem with this property
0:47:21 > 0:47:24is he swapped a kitchen for a bedroom and taken a smaller kitchen
0:47:24 > 0:47:28and put it into a bigger room and taken a bigger bedroom and put it into a smaller room.
0:47:28 > 0:47:32Not having direct access onto the garden could be a problem for the property.
0:47:32 > 0:47:37One of the benefits of having a garden flat is being able to open the door straight into the garden.
0:47:37 > 0:47:40One of the biggest complaints we have when people go to
0:47:40 > 0:47:43things with walk-in showers or wet rooms, is there's no bath.
0:47:43 > 0:47:47My advice would be, take the shower out, put bath in now,
0:47:47 > 0:47:51reconfigure it slightly while you can. It will help him a lot.
0:47:51 > 0:47:54As Sam can't afford the £40,000 for the lease extension,
0:47:54 > 0:47:57he's going to let the flat out for the next two years.
0:47:57 > 0:48:00How much income could that achieve?
0:48:00 > 0:48:04Most renters, to get a good rental, want two double bedrooms.
0:48:04 > 0:48:08I think you'd be looking round £750 per calendar month, which is the top end of a one-bed.
0:48:08 > 0:48:12For rentals, per calendar month, I'd be looking at £800.
0:48:12 > 0:48:16I was looking at 750 minimum so, yeah, that should keep me happy.
0:48:16 > 0:48:21Sam paid £104,000 for the flat and reckons his budget will end up around
0:48:21 > 0:48:2615,000 - a total outlay of 119,000 but, without the lease extension,
0:48:26 > 0:48:31the estate agents have valued the flat between 120-130,000,
0:48:31 > 0:48:36just between one and 11 grand more than he spent.
0:48:36 > 0:48:38How does Sam feel about that?
0:48:38 > 0:48:41Not too good. It will be no good to me, that, which is why I'm going to
0:48:41 > 0:48:45keep it for a couple of years and see how we go from there.
0:48:45 > 0:48:50If Sam had paid £40,000 to extend the lease, taking his total spend
0:48:50 > 0:48:55to £159,000, valuations would have been much higher.
0:48:55 > 0:48:59If I was putting this on the market, I'd be putting it on for around £170,000 mark.
0:48:59 > 0:49:05I would put this property on the market for somewhere in the region of £165-170,000.
0:49:05 > 0:49:11Based on those valuations, if Sam had been able to finance the lease extension,
0:49:11 > 0:49:14there could have been a gross profit - before the usual selling expenses -
0:49:14 > 0:49:16of between 6 and 11 grand.
0:49:16 > 0:49:22But, at 22, Sam has his foot on the property ladder and in a couple of years,
0:49:22 > 0:49:28if he extends the lease, getting a mortgage shouldn't be a problem so he could release some capital from it.
0:49:28 > 0:49:32How would he sum up his first development project?
0:49:32 > 0:49:35It's been quite stressful with the lease but hopefully
0:49:35 > 0:49:40I'll get round it. It's just the long wait I'm dreading at the moment.
0:49:40 > 0:49:43I will hopefully do it again sometime
0:49:43 > 0:49:47and next time I will read all the paperwork side of it up first.
0:49:52 > 0:49:56Back now to the north Lanarkshire village of Greengairs, where Tracy,
0:49:56 > 0:50:01the local postmistress, who also runs the village store,
0:50:01 > 0:50:08had paid £95,000 for this bungalow to add to some residential properties she already lets out.
0:50:08 > 0:50:15The property enjoys stunning views, but there was one problem that could really get up your nose.
0:50:15 > 0:50:18# Lord I smell trouble
0:50:18 > 0:50:20# Ahead of me... #
0:50:20 > 0:50:26The only negative I came across was the little bit of a whiff from the landfill site.
0:50:26 > 0:50:28I think today's just been one of them off days!
0:50:28 > 0:50:32There is a landfill site about two miles away but that will cease soon
0:50:32 > 0:50:34because the landfill's moving to an incinerator.
0:50:34 > 0:50:37- Right.- So that'll be all getting covered over so that should reduce.
0:50:39 > 0:50:44Tracy's husband, Martin, is a lorry driver and they have three grown-up daughters.
0:50:44 > 0:50:52The eldest, 23-year-old Sarah, was expecting her second child, but was going to help with the work.
0:50:52 > 0:50:55Well, it's now three months later.
0:50:55 > 0:50:58MUSIC: "My Life Would Suck Without You" by Kelly Clarkson
0:50:58 > 0:51:02We met up with Sarah and Tracy back at the bungalow.
0:51:09 > 0:51:13The red carpet and the fireplace have gone from the living room...
0:51:16 > 0:51:20..but the view is just as impressive through a new window.
0:51:20 > 0:51:27The laminate flooring continues into the adjoining room, which has been restored back to a dining area.
0:51:31 > 0:51:37The neutral colours continue in the hall and the original rear bedroom.
0:51:38 > 0:51:42The bungalow now has three bedrooms again...
0:51:45 > 0:51:50..as the large bedroom has now been converted back into two separate rooms.
0:51:56 > 0:52:03But losing the fireplace proved a big job, as Tracy explains.
0:52:03 > 0:52:07Well, this room, the biggest thing is we took away the fireplace.
0:52:07 > 0:52:13It was wall-to-wall brick, it took us nearly a whole night and a skip full of stuff.
0:52:13 > 0:52:18We had to replace most the wall because we had to replaster and fill it in, cap the roof at the top
0:52:18 > 0:52:24for the chimney and cap the bottom, and we fixed the window and it gives you a fabulous view.
0:52:24 > 0:52:31Both the kitchen and bathroom were well equipped and in good condition so didn't require much work at all.
0:52:34 > 0:52:40The big difference is in the utility room, where the old oil-fired boiler has been moved to the garage.
0:52:40 > 0:52:47- We put new worktops in the kitchen. - Painted the walls.- Painted the walls, tidied it out, and cleaned it.
0:52:47 > 0:52:51The bathroom was just cleaning, new blind.
0:52:51 > 0:52:56Tracy's worked really hard to turn this place around, but her daughter Sarah, who normally lends a hand,
0:52:56 > 0:53:00has recently given birth to baby boy Riley.
0:53:00 > 0:53:05Did that mean she could still help out?
0:53:05 > 0:53:09Not too much this time, I had a baby five weeks ago so I really just
0:53:09 > 0:53:12helped the choice of the curtains and wall colours.
0:53:12 > 0:53:15Every room is a little different with the colours and the curtains.
0:53:15 > 0:53:18In this room, the living room, it's more creams and browns.
0:53:18 > 0:53:24As you go through the house, you see the bedrooms are cream and aqua, cream and black.
0:53:24 > 0:53:25Tracy has plenty of experience
0:53:25 > 0:53:30when it comes to renovating houses but however experienced you are
0:53:30 > 0:53:36in the property game, there are always pitfall, as Tracy found out - quite literally!
0:53:36 > 0:53:39I was painting the dining area and I put the stepladders back
0:53:39 > 0:53:44and it fell through the floor and I went through with it. It was sore!
0:53:44 > 0:53:48It was sore and I had to get my dad up to put the floor back in.
0:53:48 > 0:53:55As well as this, the central heating needed to be replaced, as the pipes had corroded.
0:53:55 > 0:53:58Outside, there were a couple of leaks in the roof that were
0:53:58 > 0:54:02fairly straightforward to fix and the garden's been transformed.
0:54:03 > 0:54:08Out here, we've neutralised and painted all the fence from blue to brown,
0:54:08 > 0:54:13took away the big shed, and jet-washed it all, and it's all been landscaped so it looks quite pretty.
0:54:13 > 0:54:19Whilst we were doing that, we relocated the central heating from the utility room to the garage,
0:54:19 > 0:54:23so it made more sense to bring the oil tanker up to this end of the garden cos all the pipes were closer.
0:54:23 > 0:54:29Moving the tank and replacing the central heating cost around £6,000.
0:54:29 > 0:54:34What effect did that have on Tracy's budget,? How much has she had to spend?
0:54:34 > 0:54:39My original budget, I thought I would do between £5,000-8,000.
0:54:39 > 0:54:44I think I probably estimated, I'm actually sitting just under £12,000, finished.
0:54:44 > 0:54:51- I was on site every day after work. - Before work.- Before work, some mornings I'd be here at 5am.
0:54:51 > 0:54:57My husband was great because he'd bring me food up, so that was quite good!
0:54:57 > 0:55:00Time to see what two local estate agents make of this bungalow.
0:55:00 > 0:55:07It does look very nice but still has the disadvantage of a whiff from the local landfill site,
0:55:07 > 0:55:10I think they've done a fabulous job certainly throughout the property.
0:55:10 > 0:55:13I like that they're adding a dining room,
0:55:13 > 0:55:16and I also like what they've done with the bedroom - splitting it into two.
0:55:16 > 0:55:20The modifications they've carried out have been very good.
0:55:20 > 0:55:21They've created a new dining area
0:55:21 > 0:55:24and created a third bedroom, which should enhance the value.
0:55:24 > 0:55:29A further improvement would be to take advantage of the nice countryside views,
0:55:29 > 0:55:33so I would maybe enhance the front garden with some timber decking.
0:55:33 > 0:55:40Tracy plans to add this to her other buy-to-let investments, so how much rental income could it generate?
0:55:40 > 0:55:45I think you're looking at anywhere from about £600-650 per calendar month.
0:55:45 > 0:55:50Rental values for this area would be somewhere between £600-625 per calendar month.
0:55:50 > 0:55:53How much is the bungalow now worth?
0:55:53 > 0:56:00You may remember that Tracy paid 95,000 and has spent another 12,000, making a total of £107,000.
0:56:00 > 0:56:05In the sales market, you tend to be looking about £125-130,000.
0:56:05 > 0:56:10We would anticipate a value of between £145-150,000.
0:56:10 > 0:56:18That valuation range would generate a gross profit of between £18-43,000 - quite a difference!
0:56:18 > 0:56:22When we got it, this house came with a Home Report and it did say the valuation
0:56:22 > 0:56:28would be about 150, so we expected, with it done up to today's standard, that it would achieve that.
0:56:28 > 0:56:31Tracy is now having second thoughts about renting.
0:56:31 > 0:56:35I think I'll sell this property and do another one.
0:56:35 > 0:56:38I did go a bit over budget but I have enjoyed every minute of it,
0:56:38 > 0:56:42even falling through the floor! So I definitely would go and do another property.
0:56:47 > 0:56:50Well, that's it for today's show but we'll have more tales
0:56:50 > 0:56:53from the front line of property developing next time.
0:56:53 > 0:56:56So make sure you join us then for more Homes Under the Hammer.
0:57:03 > 0:57:07Subtitles by Red Bee Media Ltd
0:57:07 > 0:57:11E-mail subtitling@bbc.co.uk