0:00:02 > 0:00:05- Like many, we're interested in property.- That means every aspect.
0:00:05 > 0:00:07I know I'm always on the look out for a bargain.
0:00:07 > 0:00:10But how do you go about getting one?
0:00:10 > 0:00:13Well, a very reliable way is to go to a property auction.
0:00:39 > 0:00:43Now, there are property auctions all over the country
0:00:43 > 0:00:46and throughout the year, so you really are spoilt for choice.
0:00:46 > 0:00:50So let's see which properties made their buyers part with their cash on today's show.
0:00:51 > 0:00:53This house in Gainsborough in Lincolnshire
0:00:53 > 0:00:56turns out to be a bit of a challenge.
0:00:57 > 0:00:59HE CLEARS HIS THROAT
0:00:59 > 0:01:01Right. Well, we'll have to leave that till later.
0:01:01 > 0:01:05In Balham, London, this property alerts my instincts
0:01:05 > 0:01:07to a possible great find.
0:01:07 > 0:01:09That feeling is a good feeling.
0:01:09 > 0:01:11I like it.
0:01:11 > 0:01:17And this flat in Folkestone, Kent, leaves me feeling very liberated.
0:01:17 > 0:01:18If you can stare out on that,
0:01:18 > 0:01:21you're never going to feel like you're closed in.
0:01:23 > 0:01:26All these properties went to auction and we'll find out who bought them
0:01:26 > 0:01:29and what they paid for them when they went under the hammer.
0:01:29 > 0:01:31Thank you, sir.
0:01:35 > 0:01:38This is Gainsborough, an attractive market town in Lincolnshire
0:01:38 > 0:01:41and Britain's most inland port.
0:01:41 > 0:01:44It's in easy reach of Lincoln, Doncaster and Scunthorpe
0:01:44 > 0:01:48so let's hope it harbours some potential for development.
0:01:48 > 0:01:52Well, the property I'm here to see is just a short stroll from the river,
0:01:52 > 0:01:54which is literally just down there.
0:01:54 > 0:01:58However, you do also have to walk past a cement factory on the way,
0:01:58 > 0:02:02which means you get massive trucks trundling past your front door.
0:02:02 > 0:02:05But the property itself doesn't look too bad from the outside.
0:02:05 > 0:02:08It's this two bed Victorian semi.
0:02:08 > 0:02:11It had a guide price of 50,000 quid.
0:02:11 > 0:02:14Let's take a look inside.
0:02:18 > 0:02:21Well, there might be a concrete plant just along the road
0:02:21 > 0:02:25but how solid an investment was this house, guided at 50,000?
0:02:25 > 0:02:28Well, the outside looks sturdy enough.
0:02:28 > 0:02:32So through the double-glazed door, that's a good start.
0:02:32 > 0:02:36You've got double glazing in the windows as well, which is good news.
0:02:36 > 0:02:40It's a bit, you know, old fashioned when you first walk in for sure
0:02:40 > 0:02:44but nice and light - that bay window really makes a big difference.
0:02:44 > 0:02:49Through this little area here, you've got your stairs up to your bedrooms then through into the rear.
0:02:49 > 0:02:50Living room.
0:02:51 > 0:02:52Oh, dear.
0:02:52 > 0:02:55What on earth is gong on with this wall?!
0:02:55 > 0:02:57Look at the mould!
0:02:57 > 0:03:00Look at this one. Unbelievable!
0:03:00 > 0:03:03Have you ever seen a mould like that? Pink and furry?
0:03:03 > 0:03:08This is like some natural history exhibit, not a house!
0:03:08 > 0:03:11Where on earth is it coming from? It's interesting, it's an internal wall...
0:03:11 > 0:03:13Actually no, it's partly an external wall,
0:03:13 > 0:03:16so maybe it's coming from lead flashing, I don't know.
0:03:16 > 0:03:19That is not brilliant. Let's see if we can see round the back.
0:03:19 > 0:03:23There's this tiny little kitchen here which needs a bit of work doing to it
0:03:23 > 0:03:27but I'm really not bothered about that, I want to sort out whatever's going on,
0:03:27 > 0:03:28whatever's going...
0:03:31 > 0:03:32HE CLEARS HIS THROAT
0:03:32 > 0:03:35Right. Well, we'll have to leave that till later.
0:03:36 > 0:03:40Hmm not great. Doors that don't open, damp on the units
0:03:40 > 0:03:42and an interesting array of mould.
0:03:42 > 0:03:46However, it may just be a leaking pipe or a gutter that's causing all this grief,
0:03:46 > 0:03:48so, hopefully, it's not as bad as it looks.
0:03:52 > 0:03:56So double bedroom on the front there and another double bedroom at the back
0:03:56 > 0:04:01and oh, well, surprise, surprise, even more mould.
0:04:01 > 0:04:05This really is a house for fungus fanatics isn't it? Blimey.
0:04:05 > 0:04:08But you know, I don't think this is related to the one downstairs.
0:04:08 > 0:04:11Looking out there, I think you've got issues with guttering,
0:04:11 > 0:04:15amongst other things, which is creating that,
0:04:15 > 0:04:18which leads me to think that the problems downstairs are created
0:04:18 > 0:04:20probably by some leaky pipe work or other,
0:04:20 > 0:04:23and that would tie in with the position of the bathroom,
0:04:23 > 0:04:25which really isn't ideal.
0:04:25 > 0:04:28It's off the second bedroom here, that's your bathroom and toilet.
0:04:28 > 0:04:31You know, it's tired, it really needs replacing,
0:04:31 > 0:04:33but more importantly, it's in the wrong place.
0:04:33 > 0:04:37You really don't want to travel through the bedroom to get to it.
0:04:37 > 0:04:38So what could you do?
0:04:38 > 0:04:40Well, possibly put a corridor here
0:04:40 > 0:04:44and then you'd have separate access to the loo from each bedroom.
0:04:44 > 0:04:47You do lose quite a lot of space. You could move the stairs around perhaps.
0:04:47 > 0:04:49That'll be an expensive job.
0:04:49 > 0:04:51Other people in this street have built an extension,
0:04:51 > 0:04:54put another bathroom and toilet downstairs
0:04:54 > 0:04:56and kept this as an en suite.
0:04:56 > 0:04:58That comes down to how much it's going to cost to do it
0:04:58 > 0:05:02and how much it'll add value to the price of the property.
0:05:02 > 0:05:05Think about it. Might be worth doing, might not.
0:05:05 > 0:05:06# Let it grow
0:05:06 > 0:05:09# Let it grow... #
0:05:09 > 0:05:13So there might be some merit in growing the size of the property
0:05:13 > 0:05:15by putting a bigger extension on the back.
0:05:15 > 0:05:19That might then give scope for a much-needed layout rejig upstairs,
0:05:19 > 0:05:23but one thing you do need to stop getting worse is the damp.
0:05:23 > 0:05:28However, despite that, I think this house is really pretty good.
0:05:28 > 0:05:33A nice bonus - which you might not expect in this kind of property - a decent-size garden.
0:05:33 > 0:05:36Bit of lawn, a few bushes and shrubs and heathers there.
0:05:36 > 0:05:39The only downside though, THAT is a factory.
0:05:39 > 0:05:41It makes exhausts for heavy goods vehicles.
0:05:41 > 0:05:43You can't have everything I guess.
0:05:43 > 0:05:47It might not be ideal but a bit of fencing and some decent planting would help.
0:05:47 > 0:05:52For the most part, the presence of the factory wouldn't be noticed.
0:05:52 > 0:05:56It might put some buyers off but it's unlikely to affect its rental appeal.
0:05:56 > 0:06:00What does a local estate agent make of this two-bed semi?
0:06:03 > 0:06:06My first impression is that it needs a general overhaul,
0:06:06 > 0:06:07a complete refurbishment,
0:06:07 > 0:06:11but I'd recommend an extension to the rear elevation of the property
0:06:11 > 0:06:15to include a ground floor bathroom or WC, and an en-suite off the master bedroom.
0:06:15 > 0:06:18Ah ha! That's not a bad idea.
0:06:18 > 0:06:23What it would save is having to turn those stairs or corridor off the bedrooms.
0:06:23 > 0:06:27But if that was done, what kind of returns could we see from this house that was guided at 50,000?
0:06:29 > 0:06:33For two-bedroom properties such as this, with the right application
0:06:33 > 0:06:37and extension, I believe the property could be worth in the region of £80,000 to £90,000.
0:06:37 > 0:06:40And on the rental market?
0:06:40 > 0:06:43Once fully renovated, I believe this property would rent
0:06:43 > 0:06:46somewhere between £350 to £395 per calendar month.
0:06:48 > 0:06:51Well, despite appearances in certain parts of the house,
0:06:51 > 0:06:54I think this property has a lot going for it.
0:06:54 > 0:06:57Yes, it needs a bit of money spending on it
0:06:57 > 0:07:01but I think do that and it could show the right kind of growth.
0:07:01 > 0:07:04Let's see who fancied it when it went under the hammer.
0:07:05 > 0:07:09We move back now to Gainsborough for lot number 12,
0:07:09 > 0:07:11which is a traditional semi-detached house.
0:07:11 > 0:07:13What's it going to be? 40,000?
0:07:13 > 0:07:1540,000. At £40,000 I'm bid.
0:07:15 > 0:07:23At £40,000 I'm bid, thank you very much. 41, 42, are you? 42, 43, 44.
0:07:23 > 0:07:27At £44,000 I'm bid. At £44,000 I'm bid. 45.
0:07:27 > 0:07:29£45,000 I'm bid.
0:07:29 > 0:07:31At £45,000 I'm bid. And 500.
0:07:31 > 0:07:3845,500, 46, 500, 47, 500.
0:07:38 > 0:07:4447,500. 48 for you. £48,000 I'm bid, the bid is here at 48,000. 500 now?
0:07:44 > 0:07:46At £48,000.
0:07:46 > 0:07:49At £48,000, sir, for the first time,
0:07:49 > 0:07:52second, third and last time at £48,000. Are there any more bids?
0:07:54 > 0:07:56Gentleman on the right there, sir. Thank you.
0:07:56 > 0:08:02So for £48,000, the successful bidders were Shaun and Luke.
0:08:02 > 0:08:08It was Luke who went to the auction with his dad, who he persuaded to do the bidding. Well, it worked.
0:08:08 > 0:08:12They're now proud owners of this large, slightly mouldy two-bed house.
0:08:12 > 0:08:14I met them there to find out more.
0:08:14 > 0:08:18Shaun, Luke, lovely to meet you both. Congratulations.
0:08:18 > 0:08:19Why did you want to buy this place?
0:08:19 > 0:08:22I dunno. We looked at a few, didn't we?
0:08:22 > 0:08:24And this one wasn't even one of our top ones.
0:08:24 > 0:08:27It was further down the line that we wanted
0:08:27 > 0:08:29but this one came up at the right price so we went for it.
0:08:29 > 0:08:33- So it's mainly the price that sort of persuaded you.- Pretty much, yeah.
0:08:33 > 0:08:36Which is one of the reasons we come up north as well, cos they're cheaper.
0:08:36 > 0:08:38- Where are you originally from?- Essex.
0:08:38 > 0:08:42So something like this down there is going to set you back how much?
0:08:42 > 0:08:44- 200 grand probably.- Yeah.
0:08:44 > 0:08:46So you almost get three for the price of one.
0:08:46 > 0:08:50- Four.- Four for the price of one. - Yeah, pretty much.- It's amazing.
0:08:50 > 0:08:54But, of course, the key thing is not that sale prices are a quarter of
0:08:54 > 0:08:58those in parts of the south but that the rental return is still strong.
0:08:58 > 0:09:02That makes the yield on the rental market very attractive.
0:09:02 > 0:09:05Tell how you know each other and what you do.
0:09:05 > 0:09:08- Well, we've been best mates since we were four years old.- Aw.
0:09:08 > 0:09:11We're both 30 now, so it's been a long time.
0:09:11 > 0:09:16We've got our building company that we're both directors in that we started six years ago
0:09:16 > 0:09:20and it's going very successful at the moment, so we just thought we'd try our hand
0:09:20 > 0:09:24in something else to make some money for the future, really.
0:09:24 > 0:09:28- Right. So tell me exactly what you are going to do to the property. - It's just a basic full refurb.
0:09:28 > 0:09:34Kitchen out, bathroom out, strip all the wallpapering out, up with all the carpets, maybe the extension.
0:09:34 > 0:09:37Tell me more about that. What would that be?
0:09:37 > 0:09:40If we do the extension, we'll try and make the kitchen bigger,
0:09:40 > 0:09:42so it's a bit bigger like you see next door -
0:09:42 > 0:09:45they've got an extension, they made their kitchen bigger.
0:09:45 > 0:09:49They've brought the bathroom down, turned it into a three-bed upstairs,
0:09:49 > 0:09:51and that would basically be our plan.
0:09:51 > 0:09:55We're thinking about moving the staircase over to there
0:09:55 > 0:09:57so, turn it round so there's more room upstairs.
0:09:57 > 0:10:00We can get a corridor in down to the third bedroom.
0:10:00 > 0:10:03- Where would the third bedroom be? - Where the bathroom is now.
0:10:03 > 0:10:07- So you'd lose that bathroom.- Yeah. - Bring the bathroom down here.
0:10:07 > 0:10:11Luke and Shaun have budgeted just £17,000
0:10:11 > 0:10:14to do the whole house, including the extension.
0:10:14 > 0:10:18Although they seem to have worked out exactly what they want to do with it,
0:10:18 > 0:10:20there was one thing they missed.
0:10:20 > 0:10:24Let's talk about this wall, then, the one with all the mould. What do you know about that?
0:10:24 > 0:10:28- When we come and looked at it, I'm sure it wasn't here.- It wasn't.
0:10:28 > 0:10:31- It wasn't here when we looked at it. - How long ago was that?
0:10:31 > 0:10:34Probably about six to eight weeks or something, and it wasn't here.
0:10:34 > 0:10:37- Wow. Must have been a shock when you saw it.- It was.
0:10:37 > 0:10:39Yeah, when we walked in, it was a shock.
0:10:39 > 0:10:42- You're sure you came to the right house, aren't you? - Yeah, I hope so.
0:10:42 > 0:10:45- 100%. It is the right house. - It is, it is.
0:10:45 > 0:10:48I've got all the paperwork, I know it's the right house.
0:10:48 > 0:10:51# It's a kind of magic... #
0:10:51 > 0:10:54So the mould seems to have appeared as if by magic.
0:10:54 > 0:10:59Let's hope they can make it disappear just as fast.
0:10:59 > 0:11:01What's the timescale for sorting it out?
0:11:01 > 0:11:05- Without the extension, four weeks. - Without the extension.
0:11:05 > 0:11:08With the extension probably more like between four and seven.
0:11:08 > 0:11:10- Still quite quick. - Yeah, pretty quick.
0:11:10 > 0:11:13We'll be coming up here, we'll be living in here as well.
0:11:13 > 0:11:17I'll be staying here, so I can work till seven or eight o'clock at night.
0:11:17 > 0:11:21- What will your involvement be? - I've moved into the office, trying to get work in,
0:11:21 > 0:11:24lot of ordering materials, pricing the jobs up and stuff like that,
0:11:24 > 0:11:26so I'll carry on doing my day-to-day job
0:11:26 > 0:11:29to ensure there's plenty of work for when the boys get back.
0:11:29 > 0:11:31- But you're sharing the profits. - Yeah, pretty much.
0:11:31 > 0:11:35- But you're doing all the work.- Yeah, seems like a fair deal, doesn't it?
0:11:35 > 0:11:41- Good one.- Yeah, but he'd be working on the sites down in London anyway, so it's no different really.
0:11:41 > 0:11:44That's what I've been telling him, anyway.
0:11:44 > 0:11:47- Congratulations, guys.- Thank you. - We look forward to seeing how you get on.
0:11:47 > 0:11:48Cheers.
0:11:50 > 0:11:55Well, I think Shaun and Luke have chosen well for their first property development project
0:11:55 > 0:11:59and I know that they'll work hard at sorting this place out.
0:11:59 > 0:12:01Will they decide to do the extension or not
0:12:01 > 0:12:04and will they sort the damp out in that wall?
0:12:04 > 0:12:07You can find out later in the show.
0:12:10 > 0:12:15I'm smack-dab up in the hustle and bustle of Clapham in Southwest London.
0:12:15 > 0:12:21However, just down the road is a peaceful enclave of calm and tranquillity.
0:12:21 > 0:12:27Balham in Southwest London, well, it's always been Clapham's poorest relation.
0:12:27 > 0:12:28Not any more.
0:12:28 > 0:12:31Now, today's property is in the Nightingale triangle
0:12:31 > 0:12:33and it's the most desirable part of Balham,
0:12:33 > 0:12:36due to the large period properties that are found here.
0:12:37 > 0:12:41Properties in this quiet corner of Balham command a high price.
0:12:41 > 0:12:47A four-bedroom Victorian townhouse can expect to sell for just under a million quid.
0:12:48 > 0:12:50This is the one I'm here to see.
0:12:50 > 0:12:54It's a little more modest but still brimming with period features.
0:12:54 > 0:12:59It has three bedrooms and came with a guide price of £600,000.
0:13:04 > 0:13:08When I walk into a house, I get the feeling,
0:13:08 > 0:13:10and in this house, I've got a good feeling.
0:13:10 > 0:13:14There are some beautiful original features intact.
0:13:14 > 0:13:18Look at all that up there, you've got this wonderful newel post
0:13:18 > 0:13:23and please, let's hope, yes, for some original Minton tiles.
0:13:23 > 0:13:25Now look at all of that. Look.
0:13:25 > 0:13:27they are going to be really well-preserved,
0:13:27 > 0:13:31cos I bet this carpet has been down for years and years.
0:13:31 > 0:13:33It's got a really nice size front lounge area
0:13:33 > 0:13:35with a beautiful fireplace.
0:13:35 > 0:13:37Second room here, towards the back of the property.
0:13:37 > 0:13:41You could actually think about knocking this through, creating one big room.
0:13:41 > 0:13:45Again, another nice fireplace with these beautiful tiles.
0:13:45 > 0:13:48I mean, look at these lovely, lovely colours.
0:13:48 > 0:13:52Oh, there's a lot going on in this house - you've got doors leading out to the garden
0:13:52 > 0:13:54and if you look up at the ceiling,
0:13:54 > 0:13:58you've got a lovely ceiling rose with some beautiful cornicing.
0:13:58 > 0:14:01That feeling is a good feeling. I like it.
0:14:01 > 0:14:04# What a feeling... #
0:14:04 > 0:14:08Grand high ceilings and period features galore -
0:14:08 > 0:14:10what more could you ask for?
0:14:10 > 0:14:12A multi-coloured ceiling, I hear you say?
0:14:12 > 0:14:15Well, it's got that, too!
0:14:16 > 0:14:19# What a feeling... #
0:14:19 > 0:14:21To the rear is a third reception room,
0:14:21 > 0:14:24which I imagination would have originally served as kitchen.
0:14:24 > 0:14:26It has French doors to the garden,
0:14:26 > 0:14:30which is overgrown at present but it's a real sun trap.
0:14:30 > 0:14:34# I can have it all... #
0:14:34 > 0:14:36Let's take a look upstairs at the bedrooms.
0:14:38 > 0:14:42# What a feeling... #
0:14:42 > 0:14:44Well, this is a the master bedroom
0:14:44 > 0:14:47and, if you ask me, it looks rather grand.
0:14:47 > 0:14:50Again, look, you've got one of these nice, big fireplaces
0:14:50 > 0:14:54and all of these magnificent windows letting in so much light.
0:14:54 > 0:14:56Sadly, they're not that magnificent,
0:14:56 > 0:14:59cos if you take a look, they're aluminium double glazed,
0:14:59 > 0:15:01they don't go with the character of the property.
0:15:01 > 0:15:05Something original like sash windows would look amazing there.
0:15:09 > 0:15:12The second bedroom on the top floor is also a good size.
0:15:14 > 0:15:18The windows at the rear of the property are all original sash casement
0:15:18 > 0:15:21and I'd like to see them refurbished.
0:15:21 > 0:15:25On to the mid landing and the bathroom,
0:15:25 > 0:15:27which is in need of modernisation.
0:15:28 > 0:15:32And next door, the kitchen, which would have originally been a bedroom
0:15:32 > 0:15:36with the kitchen downstairs in the third reception room.
0:15:36 > 0:15:37But I did like that sunroom.
0:15:37 > 0:15:41Perhaps the kitchen could be moved to the second reception room?
0:15:41 > 0:15:43There are so many options!
0:15:44 > 0:15:47Now, there's two ways to add value to this house.
0:15:47 > 0:15:51Up there, by converting the attic space...
0:15:52 > 0:15:54..and out here.
0:15:54 > 0:15:57You see, a loft extension and a side extension
0:15:57 > 0:16:00could give you another bedroom, a much bigger kitchen
0:16:00 > 0:16:05and add as much as £200,000 to the end value.
0:16:05 > 0:16:09Extend the house and extend your profit margin. Thank you very much.
0:16:11 > 0:16:14This house has a lot of nooks and crannies
0:16:14 > 0:16:17and that includes a huge basement.
0:16:19 > 0:16:22To be a successful developer,
0:16:22 > 0:16:24it's important to see the potential in a property
0:16:24 > 0:16:27and this terraced one has oodles.
0:16:29 > 0:16:33We asked a local estate agent to give us his opinion on this place,
0:16:33 > 0:16:37which had a guide price of £600,000.
0:16:37 > 0:16:40Extension-wise, it's got enormous potential.
0:16:40 > 0:16:43You can extend out to the kitchen, that's to the side return,
0:16:43 > 0:16:47and obviously into the loft to create a master bedroom with en suite.
0:16:47 > 0:16:51If extended into the loft space to create an extra bedroom,
0:16:51 > 0:16:55what could this property achieve on the rental market?
0:16:55 > 0:16:57As a four bedroom house, your rental achievable
0:16:57 > 0:17:00could be in excess of £2,500 per calendar month.
0:17:00 > 0:17:04And a sell-on valuation?
0:17:04 > 0:17:07The potential asking price could be £950,000.
0:17:09 > 0:17:14A house with bags of potential in a hugely desirable area.
0:17:14 > 0:17:15What is not to like?
0:17:15 > 0:17:19Let's go to auction and find out who that winning bidder was.
0:17:19 > 0:17:20Start at 600 on this.
0:17:20 > 0:17:23I'm not going to go below six, it's worth that all day long.
0:17:23 > 0:17:27600 right at the back on my right, 600.
0:17:27 > 0:17:29605? 605.
0:17:29 > 0:17:33610. 615.
0:17:34 > 0:17:36620.
0:17:36 > 0:17:42625. 630. 635.
0:17:42 > 0:17:46640. 645.
0:17:46 > 0:17:50650. 655.
0:17:50 > 0:17:53660. 665.
0:17:53 > 0:18:00670. 675. 680. 685.
0:18:00 > 0:18:01690.
0:18:03 > 0:18:07Take it you, 690, another spot. 690. 695.
0:18:08 > 0:18:11700. Looking for 700.
0:18:11 > 0:18:15First time, second time,
0:18:15 > 0:18:20third and last time at 695. If you're all done?
0:18:20 > 0:18:27With a successful bid of £695,000, the happy couple are Scott and his wife, Ness.
0:18:29 > 0:18:32This will be their new home and with Ness due to give birth
0:18:32 > 0:18:35to their first child in under four months,
0:18:35 > 0:18:38they'll need to get cracking on the renovation.
0:18:38 > 0:18:42# Hey, hey, baby's on the way... #
0:18:43 > 0:18:44Guys, congratulations.
0:18:44 > 0:18:47- Thank you.- You must be thrilled you got this at auction.
0:18:47 > 0:18:50- Yes.- Very excited. Yes. - So is this the home of your dreams?
0:18:50 > 0:18:55- For the next short while.- Yes. I think we've looked at so many houses
0:18:55 > 0:19:01and this one has ticked most of the boxes I would say, apart from perhaps the state of it.
0:19:01 > 0:19:04What was it that you liked so much to want to buy it?
0:19:04 > 0:19:08Well, it's a great spot, it's got potential.
0:19:08 > 0:19:11We've been wanting to do a project for a little while.
0:19:11 > 0:19:15We looked at about 25 other houses, didn't find one that we both liked.
0:19:15 > 0:19:18I think the one thing that really appeals to me
0:19:18 > 0:19:20is Wandsworth Common is just on the door as well,
0:19:20 > 0:19:23which is a lovely place, especially on a day like today
0:19:23 > 0:19:26when it's sunny so, yeah, great location. We're really happy.
0:19:26 > 0:19:29- Now, I can see you rubbing your tummy there.- I am. - Baby on the way,
0:19:29 > 0:19:31how long have you got to go?
0:19:31 > 0:19:35Well, I'm just about five and a half months now, so, yeah.
0:19:35 > 0:19:37That is going to be fantastic for you.
0:19:37 > 0:19:40You've got the common, it's going to be an amazing area,
0:19:40 > 0:19:41you can take Baby for lovely walks.
0:19:41 > 0:19:45So this will be a lovely family house for you
0:19:45 > 0:19:47but obviously not in the state that it's in.
0:19:47 > 0:19:50- No.- No. - So, Scott, let's talk about that.
0:19:50 > 0:19:51It needs a little work, doesn't it?
0:19:51 > 0:19:54For starters, that's a rather interesting ceiling up there.
0:19:54 > 0:19:59Colours aside, the ceiling is great and we'll be keeping that.
0:19:59 > 0:20:06I'm happy to hear Scott and Ness are as taken with the period character of this house as I am.
0:20:06 > 0:20:08So what are their plans for it?
0:20:08 > 0:20:12Will you decorate, will you renovate, will you add to this house?
0:20:12 > 0:20:14Yes, we have just appointed an architect
0:20:14 > 0:20:18and hopefully we will have some plans for planning in three or four weeks.
0:20:18 > 0:20:20So you are looking at extending?
0:20:20 > 0:20:22Extending up and then out the back
0:20:22 > 0:20:25and out the side and clearing the rest of it out and new everything.
0:20:25 > 0:20:28What sort of budget are you looking at to do the work here?
0:20:28 > 0:20:31- Well, it's a bone of contention but...- With both of you.
0:20:31 > 0:20:33Let's start with Scott. How much will you spend?
0:20:33 > 0:20:38Well, when we sat down before the auction, I reckoned we could do it for 130
0:20:38 > 0:20:42but I think it might go up to sort of 150.
0:20:42 > 0:20:46So are you thinking about adding an extra bathroom and bedroom here?
0:20:46 > 0:20:49Yeah, so we're going to go into the loft, loft conversion,
0:20:49 > 0:20:53definitely one bedroom, maybe two, and an en suite up there.
0:20:53 > 0:20:56So that will give us one or two extra bedrooms.
0:20:56 > 0:20:58This room we're hoping to knock through
0:20:58 > 0:21:02and then have a much bigger kitchen on the back of it as well.
0:21:02 > 0:21:05So you are going to eat into your garden space a little.
0:21:05 > 0:21:10- A little.- A little, yes. - And we're still discussing whether we can extend in glass.
0:21:10 > 0:21:13- Yeah.- But it's an unresolved discussion at the moment.
0:21:13 > 0:21:15That may eat into that budget.
0:21:15 > 0:21:18Yes, we've had some discussions with a specialist company
0:21:18 > 0:21:21and it's not off-the-planet expensive, so maybe.
0:21:21 > 0:21:25That would look fabulous and it would also let so much light into this house.
0:21:25 > 0:21:29- I believe you, Lucy, and I agree with you.- I'm actually like that idea, Scott. Sorry, Ness.
0:21:29 > 0:21:34I'm thinking on a practical level and the builder said the same as me, I think, didn't he?
0:21:34 > 0:21:38That it would be kind of like a greenhouse and the cleaning side of it.
0:21:38 > 0:21:41How do you clean a big glass box?
0:21:41 > 0:21:43You have such a traditional house here -
0:21:43 > 0:21:45it's always such a lovely surprise element
0:21:45 > 0:21:48when you walk through a house like this to then go, "Wow".
0:21:48 > 0:21:52- You see something you're not expecting at the back. - Yeah.- I agree.- Sorry.
0:21:52 > 0:21:55- We'll see.- It'd be nice to combine something modern with...
0:21:55 > 0:21:59It's an old house. If we can get something and stretched the budget, we may do something.
0:21:59 > 0:22:02Yeah, you have to keep a bit of the budget back for a cleaner,
0:22:02 > 0:22:04that'll clean the glass for you.
0:22:04 > 0:22:06Exactly. Or self-cleaning glass.
0:22:06 > 0:22:09# Hey, it's a real good day
0:22:11 > 0:22:15# Cos baby's on the way... #
0:22:15 > 0:22:20Well, let's hope they find it easier to decide on baby names.
0:22:20 > 0:22:22# Baby's on the way... #
0:22:22 > 0:22:25Scott is a commercial property project manager
0:22:25 > 0:22:28and Ness is a risk manager for a bank,
0:22:28 > 0:22:33so they should have many of the skills necessary to ensure a smooth renovation.
0:22:33 > 0:22:36But I've got one more big question to ask.
0:22:37 > 0:22:39So where's the baby's room going to be?
0:22:39 > 0:22:42The baby's room is the middle bedroom, so next to our room.
0:22:42 > 0:22:44Do you know what you're having? Girl or boy?
0:22:44 > 0:22:46- Big secret.- A blue or a pink room?
0:22:46 > 0:22:48- Big secret.- Blue room.
0:22:48 > 0:22:53- Blue room.- Yes.- You're hoping. But it could be a pink room?
0:22:53 > 0:22:56- Could be a pink room as well. - We'll have to wait and see won't we?
0:22:56 > 0:22:59- We will have to wait and see. - This house will look fantastic.
0:22:59 > 0:23:03It's in a great area, you know, it really has got the bones here to be amazing.
0:23:03 > 0:23:07- Yeah.- Hope so.- And it's going to be really interesting to see what you do out the back there.
0:23:07 > 0:23:10- We look forward to you coming back. - See the glass box.
0:23:10 > 0:23:13The glass... Well, you could have swung it with your...
0:23:13 > 0:23:16- You know what you're talking about, Lucy.- Of course I do.- Exactly.
0:23:16 > 0:23:19Guys, it's been lovely meeting you. Good luck with this and the baby.
0:23:19 > 0:23:23- Thank you.- Hopefully we'll see the baby when we come back.
0:23:23 > 0:23:25- Thanks, Ness.- Thanks. - Thank you.- Thank you.- Thanks.
0:23:26 > 0:23:29Well, it's good the couple have got a healthy budget
0:23:29 > 0:23:32but they've never taken on such a large project.
0:23:32 > 0:23:34Will it prove to be too much for them?
0:23:34 > 0:23:37Especially as they've got a baby on the way
0:23:37 > 0:23:40and will we see that glass box at the end of this house
0:23:40 > 0:23:42or will Ness get her own way?
0:23:42 > 0:23:45You can find out how it all goes later in the programme.
0:23:46 > 0:23:51Coming up, this flat in Folkestone, Kent
0:23:51 > 0:23:53brings out the demolition man in me.
0:23:53 > 0:23:56How great would it be to actually just remove this wall?
0:23:56 > 0:24:00In south London, did Scott and Ness get the look they'd hoped for?
0:24:00 > 0:24:03We wanted it to look like a Victorian house
0:24:03 > 0:24:07from the front but to look really modern and contemporary once you came through the door.
0:24:07 > 0:24:13But first back to Gainsborough, Lincolnshire, where Shaun is as keen to see the renovation as we are.
0:24:13 > 0:24:16This is the first time I've seen it since it's been completed.
0:24:19 > 0:24:22In the pretty Lincolnshire town of Gainsborough,
0:24:22 > 0:24:25Essex-based builders Shaun and Luke
0:24:25 > 0:24:28bought a three-bed semi at auction for 48,000.
0:24:28 > 0:24:32Although apparently structurally sound, it did come with some issues.
0:24:32 > 0:24:37It backed onto a factory area and the bathroom could only be reached through another bedroom.
0:24:40 > 0:24:43But worst of all, there were signs of damp and mould.
0:24:43 > 0:24:44News to Shaun and Luke.
0:24:47 > 0:24:49When we looked at it, I'm sure it weren't here.
0:24:49 > 0:24:52- It wasn't.- It must have been a shock when you saw it.
0:24:52 > 0:24:55- Yes.- Yeah, when we walked in, yeah, it was a shock.
0:24:55 > 0:24:58- You're sure you came to the right house aren't you?- Hope so!
0:24:58 > 0:25:01# It's a mystery
0:25:01 > 0:25:03# Oh, it's a mystery
0:25:03 > 0:25:06# I'm still searching
0:25:06 > 0:25:08# For a clue... #
0:25:08 > 0:25:12So it was a bit of a mystery to the pair where all the mould and damp had sprung from.
0:25:12 > 0:25:17But having bought this fungal farm, there was not MUSHROOM for regrets,
0:25:17 > 0:25:21so armed with a £15,000 budget,
0:25:21 > 0:25:24it was down to Luke to solve the mystery.
0:25:24 > 0:25:27Just nine weeks later, we're back.
0:25:28 > 0:25:31And with a tidy-up at the front, it certainly looks promising.
0:25:33 > 0:25:38Inside, well, the old electrical appliances have been removed...
0:25:39 > 0:25:42..and the rooms completely refurbished.
0:25:42 > 0:25:46In the back reception room, there are now patio doors out onto the garden
0:25:46 > 0:25:50and the kitchen area has undergone a total refit.
0:25:52 > 0:25:56But perhaps most impressive of all, there's now a new extension,
0:25:56 > 0:25:59which houses a brand-new bathroom suite.
0:25:59 > 0:26:01So Luke's been pretty busy.
0:26:02 > 0:26:06So out here, we've blocked the old kitchen doorway up
0:26:06 > 0:26:08and there was a window here and we cut that out
0:26:08 > 0:26:11and put the French doors in and we figured this gives us more light
0:26:11 > 0:26:15into the dining room and extra kitchen space, like, for the units.
0:26:15 > 0:26:19And coming along here, this used to be an outside toilet and a shed
0:26:19 > 0:26:22but we knocked all that down and put up a new extension
0:26:22 > 0:26:23where we moved the bathroom to.
0:26:23 > 0:26:27We had a bit of an issue with the drains, so we had to move the manhole, run new drains,
0:26:27 > 0:26:29but overall, I'm pleased with it.
0:26:29 > 0:26:33And the addition of the extension to house the downstairs bathroom
0:26:33 > 0:26:36has allowed changes to be made upstairs...
0:26:44 > 0:26:47..particularly with the back bedroom,
0:26:47 > 0:26:50which previously had the bathroom off it, as Shaun explains.
0:26:52 > 0:26:55So this used to be the old bathroom, this room,
0:26:55 > 0:26:58so we've basically taken it out and moved it downstairs
0:26:58 > 0:27:01into the new extension, carpeted, redecorated it,
0:27:01 > 0:27:05so hopefully a young family could use it as a nursery
0:27:05 > 0:27:07or a walk-in wardrobe or whatever they choose.
0:27:07 > 0:27:10Over here, this is where the old fire was in this bedroom.
0:27:10 > 0:27:16We've taken it out, replaced it with a full gas central heating system, new boiler.
0:27:16 > 0:27:20And then up here... Then we've done new carpets, lined all the walls,
0:27:20 > 0:27:26painted the walls, new coving up, new doors and that's about it.
0:27:26 > 0:27:30So the extension solved one problem but what about that mystery mould?
0:27:30 > 0:27:34# Begone, begone... #
0:27:34 > 0:27:39On this wall here, we had a lot of mould when we came here to start the filming
0:27:39 > 0:27:43and we thought it was all from the guttering from upstairs
0:27:43 > 0:27:45but on further investigation,
0:27:45 > 0:27:48we found out that there was a burst pipe in the wall
0:27:48 > 0:27:50in the bathroom, so that got fixed.
0:27:50 > 0:27:52Once that was fixed, we could hack the wall off
0:27:52 > 0:27:55and then let it dry out and then bond and set it
0:27:55 > 0:27:57and we haven't had a problem since.
0:27:57 > 0:27:59Like the mould, Shaun left the house
0:27:59 > 0:28:03and headed back to Essex, leaving Luke to sort out the work.
0:28:04 > 0:28:09Obviously it was hard being away from home for six weeks.
0:28:09 > 0:28:12Obviously, I had to base myself up in this area,
0:28:12 > 0:28:15because it's a two and a half, three hour drive,
0:28:15 > 0:28:18and leave my wife for six weeks. It was hard.
0:28:18 > 0:28:21And being around the same people I was working with day in, day out.
0:28:21 > 0:28:25Yeah, it was hard but it was worth it in the end.
0:28:25 > 0:28:29Luke and his team of builders have done fantastically well
0:28:29 > 0:28:32to complete all the work, including the extension, in just six weeks.
0:28:32 > 0:28:34Did Shaun get involved at all?
0:28:36 > 0:28:38# I'm the invisible man
0:28:38 > 0:28:40# I'm the invisible man... #
0:28:40 > 0:28:43I'm based in Chingford in the office so I didn't really come up
0:28:43 > 0:28:47and do a lot of work on this project, it was all left to Luke.
0:28:47 > 0:28:51This is the first time I've seen it since it's been completed
0:28:51 > 0:28:55and I'm really proud of him and happy with the finished article.
0:28:55 > 0:29:00In fairness to Shaun, he was organising the materials and making sure other jobs they had on
0:29:00 > 0:29:03were kept on track. After all, time is money.
0:29:03 > 0:29:07Well, originally our budget was £17,000 for the whole thing with the extension.
0:29:07 > 0:29:14We ended up creeping over by 1,500 to 2,000, but we hadn't accounted for putting in the French doors
0:29:14 > 0:29:16and the ceiling came down and had to be redone.
0:29:16 > 0:29:22So we were a little bit over but still quite happy with the amount we spent.
0:29:22 > 0:29:28A £19,000 spend on top of a £48,000 purchase price plus costs and fees
0:29:28 > 0:29:32will see their total outlay reach around £70,000.
0:29:32 > 0:29:36So has their investment grown as fast as that mould?
0:29:36 > 0:29:38What do two local estate agents think?
0:29:43 > 0:29:46The property has been finished to an excellent standard,
0:29:46 > 0:29:47improving internal condition
0:29:47 > 0:29:51and making the property more of a modern contemporary feel.
0:29:51 > 0:29:55My first impressions of the property are that it has been brought up to a very good standard.
0:29:55 > 0:29:58I think it will rent very well and it could sell
0:29:58 > 0:30:00although the market locally is a little bit weak.
0:30:00 > 0:30:05Shaun and Luke really saw this as a long-term investment and therefore
0:30:05 > 0:30:10plan to rent the house out, but have they spent their £70,000 wisely?
0:30:10 > 0:30:15I think the property is worth somewhere in the region of £85,000 to £90,000 in today's market.
0:30:15 > 0:30:19I would expect the resale value of the property to be in the region of £80,000.
0:30:19 > 0:30:24- Yeah, I'm happy with that.- Yeah. - I'm happy with £85,000 to £90,000.
0:30:24 > 0:30:26I'd take £80,000 for it.
0:30:26 > 0:30:30There could be a small profit on the retail market but they chose
0:30:30 > 0:30:35this area of the country for the potential rental yields.
0:30:35 > 0:30:41I would expect the rental value for the property to be £450 per calendar month.
0:30:41 > 0:30:46I believe the property would rent for somewhere between £450 to £475 per calendar month.
0:30:46 > 0:30:51- Yeah, I think at that money it's pretty much what we were expecting, wasn't it?- Yeah.
0:30:51 > 0:30:57475 would be a little bit more than what we were expecting, so yeah, 450 and upwards is good.
0:30:57 > 0:31:04Well, even £450 a month, or £5,400 a year off a £70,000 investment
0:31:04 > 0:31:07would bring in a yield of around 8%.
0:31:07 > 0:31:11In the current climate that's pretty healthy. So what next?
0:31:11 > 0:31:17Well, we're going to go back down south, carry on with our building company,
0:31:17 > 0:31:20wait for the six months to come up on this,
0:31:20 > 0:31:24remortgage this and then go straight out and buy another property.
0:31:24 > 0:31:29So it's back down south to Essex for a while and then hopefully go again,
0:31:29 > 0:31:32presumably still as business partners?
0:31:32 > 0:31:35I think we will always work together, me and Shaun.
0:31:35 > 0:31:38It seems to have been successful so far, so I can't see any reason why not.
0:31:38 > 0:31:41No. Maybe when we've made enough money, gone our separate ways
0:31:41 > 0:31:44and nobody's working any more. Maybe then.
0:31:44 > 0:31:47Eventually they may go their separate ways, but for now
0:31:47 > 0:31:50it looks like they're both pulling in the same direction.
0:32:00 > 0:32:05I'm down by the sea on the south-east coast in Folkestone.
0:32:05 > 0:32:08It's had its day as a thriving holiday resort,
0:32:08 > 0:32:12but things are on the up with an increasing number of people moving here from London
0:32:12 > 0:32:17because property-wise they can get a lot more bang for their buck.
0:32:17 > 0:32:22Well, just a five minute stroll from the beachfront is the property I'm here to see.
0:32:22 > 0:32:27Two-bedroom, top-floor flat at a guide price of £44,000 to £50,000.
0:32:27 > 0:32:33This purpose-built block of flats looks imposing and grand from the front.
0:32:33 > 0:32:35Let's hope it keeps up appearances inside.
0:32:35 > 0:32:40Well, you can tell a lot about a flat by the communal areas
0:32:40 > 0:32:44and in this case it's not looking too brilliant.
0:32:44 > 0:32:48These are the responsibility of either the management committee or the landlord
0:32:48 > 0:32:51and as you can see, it's all a bit grubby.
0:32:54 > 0:32:59So not the most sparkling of communal areas and let's hope the flat itself improves a bit.
0:32:59 > 0:33:02You have to ignore the clutter. What have we actually got?
0:33:02 > 0:33:04A bit of a suspended ceiling.
0:33:04 > 0:33:07You can tell we're right on the top, you can see the concrete!
0:33:07 > 0:33:11Large bedroom there, we quite like that, and then through into your main living area.
0:33:11 > 0:33:17It is a nice size, but by far the most impressive feature is that view.
0:33:17 > 0:33:21It doesn't matter what size the flat is, if you can stare out on that,
0:33:21 > 0:33:24you're never going to feel like you're closed in.
0:33:24 > 0:33:27A view which includes the Folkestone Downs is quite a treat.
0:33:27 > 0:33:29On the down side is that ceiling.
0:33:29 > 0:33:32A suspended ceiling isn't the most attractive feature
0:33:32 > 0:33:37in a period building, and it appears to be suffering from damp.
0:33:37 > 0:33:41There is one decent-size bedroom, but the other leaves a lot to be desired.
0:33:41 > 0:33:45Not only is it pokey and small, it's not in great condition.
0:33:45 > 0:33:49Still, it's not the only thing suffering from a lack of space here.
0:33:49 > 0:33:53Well, unfortunately the compromise for having that fabulous, large,
0:33:53 > 0:33:58lovely living room area is here, the kitchen.
0:33:58 > 0:34:02As you can see it is really, really cramped.
0:34:02 > 0:34:07What do you do? Well, I think I've got a solution, but first of all,
0:34:07 > 0:34:11microscopically small boiler to fit in as well. That looks terribly out of date.
0:34:11 > 0:34:15Get that serviced or replaced and then think about the layout in here.
0:34:15 > 0:34:17Actually don't, because I've got an idea.
0:34:17 > 0:34:23I noticed that you've got this wall here in between the living room area and the kitchen.
0:34:23 > 0:34:30Now, it's fairly solid, so it is structural, but how great would it be to actually just remove this wall?
0:34:30 > 0:34:35Maybe with an archway, ideally by sticking some kind of a structural beam across the top there
0:34:35 > 0:34:37and then taking this wall out completely.
0:34:37 > 0:34:41You then extend the kitchen out here, maybe have a breakfast bar coming slightly into this room.
0:34:41 > 0:34:46You can sit here having your breakfast cereal looking out over the view, it's fantastic.
0:34:46 > 0:34:51The only fly in the ointment is this is a leasehold property and therefore probably before you get involved in
0:34:51 > 0:34:56any major structural works, you've got to get hold of the landlord and get his or her permission.
0:34:56 > 0:35:01You've also got to think about whether the expensive structural work would be worth it.
0:35:01 > 0:35:03These flats will have a ceiling price
0:35:03 > 0:35:05and unless you are going to be living in it yourself,
0:35:05 > 0:35:08you should probably keep the renovation to a minimum.
0:35:08 > 0:35:12We asked a local estate agent what he thought about it.
0:35:12 > 0:35:14The flat needs a lot of TLC.
0:35:14 > 0:35:17It's in a building which has been
0:35:17 > 0:35:23neglected to a certain extent for some time and it wouldn't take a lot of money to actually revive it
0:35:23 > 0:35:28so that it is more attractive on the approach through the corridors
0:35:28 > 0:35:31and obviously leading to the apartment itself.
0:35:31 > 0:35:36The layout of this particular apartment is not to everyone's liking.
0:35:36 > 0:35:41I think some people would say that having the bathroom immediately adjacent to the kitchen,
0:35:41 > 0:35:45although from a plumbing perspective one can consider why that's done,
0:35:45 > 0:35:47it's not the more ideal situation.
0:35:47 > 0:35:49You have to pass the bathroom on the way to the kitchen.
0:35:49 > 0:35:51Some of the rooms have suspended ceilings
0:35:51 > 0:35:56and that might be hiding a nest of problems, I think,
0:35:56 > 0:35:59and in fact my first view of those particular ceiling areas exposed
0:35:59 > 0:36:02suggests there is some damp that needs to be dealt with.
0:36:02 > 0:36:06Lots of work to do then, but when this place is back
0:36:06 > 0:36:10in ship-shape condition, what could it be worth?
0:36:10 > 0:36:14Once this flat has been renovated, and we'll say to a high standard,
0:36:14 > 0:36:17this apartment would be worth in the region of £100,000.
0:36:17 > 0:36:19And for rental?
0:36:19 > 0:36:24A two-bedroom apartment in this block would fetch between £500
0:36:24 > 0:36:27and £550 per calendar month in good condition.
0:36:28 > 0:36:32So, all in all, a good-sized flat in a decent location.
0:36:32 > 0:36:37Nice place to live or something that could be a good rental or resale money earner.
0:36:37 > 0:36:40Let's see who bought it when it went under the hammer.
0:36:44 > 0:36:46Start me where you will on that one.
0:36:46 > 0:36:48We've got a very good guide price of 45 to 50.
0:36:48 > 0:36:52We'll say £45,000 and hands should be shooting up everywhere. 45,000?
0:36:52 > 0:36:53Well, one hand has shot up slowly.
0:36:53 > 0:36:5745 I'm bid. 45 I've got, 47 now, do I see?
0:36:57 > 0:37:00Do I see two more anywhere? Just you and me at the moment.
0:37:00 > 0:37:0547 bid I've got. 48 now if you like. At 48, 48 I'm bid.
0:37:05 > 0:37:10Fill it up to 50, and two, 52 I'm bid, 54 if you like.
0:37:10 > 0:37:1354 I have, 56 now if you like.
0:37:13 > 0:37:1556 may I say?
0:37:15 > 0:37:1758, are you coming back in again?
0:37:17 > 0:37:1958 may I say?
0:37:19 > 0:37:24At 58 by the door, I've got 56 in the aisle, 58 I'm looking for, 58 I've got.
0:37:24 > 0:37:26Fill it up to 60, may I say?
0:37:26 > 0:37:29At £60,000, £60,000.
0:37:29 > 0:37:31At £60,000.
0:37:31 > 0:37:37If we're all done at 58, then I will sell for the first time, £58,000 on the left-hand side
0:37:37 > 0:37:41for the second time, third and final time at £58,000.
0:37:41 > 0:37:46All done, happy, all done, yours at 58. Well done, sir.
0:37:46 > 0:37:51# It takes two, baby It takes two, baby... #
0:37:51 > 0:37:58Successful at the auction with their bid of 58,000 were Nina, a mechanical design engineer,
0:37:58 > 0:38:04and Alistair, an electrical engineer, who have teamed up to start a business in property investment.
0:38:08 > 0:38:10Alistair, Nina, lovely to meet you both.
0:38:10 > 0:38:13- Congratulations.- Thank you, Martin. - Thank you.- So why did you want to buy this place?
0:38:13 > 0:38:17We both have money left over from pension funds and banks
0:38:17 > 0:38:22not making anything at the moment so we thought we'd try property investing.
0:38:22 > 0:38:25Right. Is this the first venture into that world?
0:38:25 > 0:38:27We have bought a plot of land
0:38:27 > 0:38:30which we are going through a planning permission to build a couple of houses.
0:38:30 > 0:38:33- Oh, wow.- But this is to keep us amused over the winter.
0:38:33 > 0:38:37Fair enough. So what about the relationship between you two?
0:38:37 > 0:38:40We're business partners.
0:38:40 > 0:38:46We were working together in a consultancy in London and discussed the lack of interest in the banks
0:38:46 > 0:38:52- and thought we could do something together to keep ourselves amused. - Oh, great.
0:38:52 > 0:38:57So how did that turn from that kind of conceptual idea to actually buying somewhere down here in Folkestone.
0:38:57 > 0:39:02Well, we couldn't afford something in London, so this was good value.
0:39:02 > 0:39:05I mean, we're looking for value obviously.
0:39:05 > 0:39:08What was it about this flat that appealed?
0:39:08 > 0:39:12When we went to auction, we had a list of about ten properties we were interested in.
0:39:12 > 0:39:18- The earlier ones we had bid on and lost and this one we won.- We won.
0:39:18 > 0:39:21So you'd looked at ten properties you could potentially buy.
0:39:21 > 0:39:24- We didn't look at any properties. - You didn't look at any of them?
0:39:24 > 0:39:28- We did research them all and looked at the selling prices of properties nearby.- Google Earth.
0:39:28 > 0:39:34The essential, and also looked carefully at the quality of the property that was being sold.
0:39:38 > 0:39:41Buying blind can be a very risky strategy
0:39:41 > 0:39:46and not one I would recommend, but this plucky pair seem unfazed.
0:39:46 > 0:39:51What experience do both of you have in terms of property renovation and restoration?
0:39:51 > 0:39:54Very little domestically, apart from the few houses that I've owned,
0:39:54 > 0:39:59but being in the construction industry, commercially we've built buildings,
0:39:59 > 0:40:02we've knocked down buildings, we've renovated them.
0:40:02 > 0:40:07Not necessarily with our own fair hands, but technically we have.
0:40:07 > 0:40:09When I was younger, as an electrician,
0:40:09 > 0:40:12I did work for a small building firm that did a lot of conversions
0:40:12 > 0:40:19of flats in south London so I have got some experience of that sort of work,
0:40:19 > 0:40:21but not on my own account.
0:40:21 > 0:40:24Tell me step by step what you're going to do to sort the place out.
0:40:24 > 0:40:30We're on a tight budget so it's hard to know if we can afford to do much structural work
0:40:30 > 0:40:34but we were going to replace the existing boiler system with a combi boiler
0:40:34 > 0:40:37which will free up some space in the cupboard
0:40:37 > 0:40:41which will open up the kitchen, and with new kitchen units
0:40:41 > 0:40:44we hope that it will look a lot better in there.
0:40:44 > 0:40:46So what kind of budget have you got for the work?
0:40:46 > 0:40:51- We're going to try and get it under about £7,000.- £5,000.
0:40:53 > 0:40:55You say five, you say seven.
0:40:55 > 0:40:58And that's going to be mostly spent on what?
0:40:58 > 0:41:03Well, I think the ceiling was going to take a bit of sorting out one way or the other.
0:41:03 > 0:41:05But the kitchen and bathroom will cost the money.
0:41:05 > 0:41:07Time scales for the work?
0:41:07 > 0:41:10That's changed because Alistair has decided to go back to work, but...
0:41:10 > 0:41:13She says through gritted teeth.
0:41:13 > 0:41:18We were going to turn it around in two months, but I think it's probably three, so four maybe.
0:41:18 > 0:41:22- No, I still think it should be turned around in six to eight weeks. - OK. There we are.
0:41:22 > 0:41:26So six to eight weeks, seven grand. And three months...five grand.
0:41:26 > 0:41:28- Five grand.- How does that work?
0:41:28 > 0:41:32Not sure. But it will be interesting to see anyway. Now, there is some
0:41:32 > 0:41:34enthusiastic banter between you two.
0:41:34 > 0:41:38How is it going to work as a business relationship, do you think?
0:41:38 > 0:41:41- I think at the end of the day... - You're the boss.- I am, yeah.
0:41:41 > 0:41:43- You do as you are told, don't you? - Yes.
0:41:43 > 0:41:47- Is it OK? Because you're not together as a couple so are you OK?- Not. No.
0:41:47 > 0:41:49"Definitely not!" she says.
0:41:49 > 0:41:52- No, it's... - The guy's got feelings, come on.
0:41:52 > 0:41:55- No.- I've got standards as well.
0:41:55 > 0:42:02But so there's no, there's no chance of a bit of friction between you two when it comes to making decisions.
0:42:02 > 0:42:05- Oh, I think there will be. - I think there will be but it's a professional friction
0:42:05 > 0:42:07and at the end of the day we both want to make money.
0:42:07 > 0:42:09Congratulations. Good luck with it.
0:42:09 > 0:42:13- Thank you very much.- Looking forward to seeing how you get on.- Thank you. - See you soon.
0:42:13 > 0:42:17Well, I don't know about you, but something tells me there will be
0:42:17 > 0:42:22fireworks on this renovation before the day is out. Will they make any money?
0:42:22 > 0:42:24Will they still be friends at the end of it all?
0:42:24 > 0:42:27You can find out later in the show.
0:42:30 > 0:42:35There's been plenty of time for our buyers to have started work on their properties.
0:42:35 > 0:42:40But have they actually done anything or have they been beset by problems?
0:42:40 > 0:42:43Time is money, and have they made any or just lost out?
0:42:43 > 0:42:45Let's go back and find out.
0:42:46 > 0:42:49It was in Balham, south-west London, that we first saw
0:42:49 > 0:42:55a rather splendid three-bedroom, bay-fronted Victorian terraced house.
0:42:55 > 0:43:00It may be a real estate-agent's cliche, but this property really did have loads of potential.
0:43:00 > 0:43:05You could build up into the loft, extend out the back or open up into the cellar,
0:43:05 > 0:43:10and with many features still intact, albeit some of them rather interestingly painted
0:43:10 > 0:43:14this was one of those auction lots to get excited about.
0:43:15 > 0:43:21It was bought by young couple Scott and Ness for £695,000.
0:43:21 > 0:43:27They'd been living in a small house in Tooting and were keen to find somewhere bigger.
0:43:27 > 0:43:29So is this the home of your dreams?
0:43:29 > 0:43:30For the next short while.
0:43:30 > 0:43:37Yes. I think we looked at so many houses and this one has ticked most of the boxes, I'd say.
0:43:37 > 0:43:42- I can see you rubbing your tummy there.- I am.- So baby on the way, how long have you got to go?
0:43:42 > 0:43:47Well, I'm just about five and a half months now, so yeah.
0:43:47 > 0:43:51So the clock was ticking, and with grand plans for loft conversions
0:43:51 > 0:43:55and kitchen extensions, they had their work cut out.
0:43:55 > 0:44:00And now nearly one year to the day, we're back.
0:44:00 > 0:44:03From outside, the house is looking crisp and clean.
0:44:03 > 0:44:05With the bush removed from the front garden,
0:44:05 > 0:44:09the delicate traditional ironwork on the wall is now visible.
0:44:09 > 0:44:13But it was inside where Ness and Scott hoped
0:44:13 > 0:44:18they could bring a modern touch to what is now a proper family home.
0:44:24 > 0:44:28With the arrival of eight-month-old baby Monty,
0:44:28 > 0:44:31they moved in just three weeks ago.
0:44:31 > 0:44:34And what a home they've made for themselves here.
0:44:40 > 0:44:46Two reception rooms were knocked through to make a wonderful lounge dining area...
0:44:51 > 0:44:56..which then leads on to a stunning open-plan kitchen.
0:45:02 > 0:45:08And though Scott's original plans for a glass box extension were refused,
0:45:08 > 0:45:11what they ended up with isn't half bad.
0:45:11 > 0:45:16Last time you were here, this space was completely different and much smaller.
0:45:16 > 0:45:20I think the room probably finished maybe around here.
0:45:20 > 0:45:25And what we also did was extend out
0:45:25 > 0:45:30to the next wall and also put in this beautiful glass window here.
0:45:30 > 0:45:35And the tiles, the idea was that once the bi-folding doors are open,
0:45:35 > 0:45:38that this area then becomes actually
0:45:38 > 0:45:40one room leading into the garden.
0:45:40 > 0:45:41It feels great when those are open,
0:45:41 > 0:45:45lots of air and being able to step straight out.
0:45:45 > 0:45:49We really love this room, it's one of our favourite bits of the house.
0:45:52 > 0:45:55And those great bi-folding doors lead
0:45:55 > 0:46:00out onto that lovely sunny terrace and child-friendly garden space.
0:46:08 > 0:46:12Upstairs, that high quality, chic modern finish continues
0:46:12 > 0:46:16with a stylish white and black bathroom suite.
0:46:20 > 0:46:25The old kitchen space has been returned to being a bedroom...
0:46:26 > 0:46:30..while in the master bedroom, gone is the dated wallpaper
0:46:30 > 0:46:35and dilapidated carpet, to be replaced by bespoke fitted wardrobes.
0:46:38 > 0:46:42And the third bedroom is now baby Monty's nursery.
0:46:47 > 0:46:50But they didn't stop there.
0:46:50 > 0:46:53We also added a loft conversion.
0:47:02 > 0:47:06The extra sort of piece we wanted in terms of making the loft conversion
0:47:06 > 0:47:12feel slightly different was to have sort of a different staircase going up to the loft.
0:47:12 > 0:47:18Sort of a slight mezzanine feel to it when you're standing at the top of the house
0:47:18 > 0:47:21because the stairs don't actually join the wall,
0:47:21 > 0:47:25there is actually a space which enables you to look down.
0:47:25 > 0:47:30This loft space has turned out to be a fantastic bonus with en suite
0:47:30 > 0:47:33shower room and balcony doors to look out over sunny Balham.
0:47:33 > 0:47:37But getting to this stage hasn't been easy.
0:47:37 > 0:47:41The original extension plans were rejected and their first builder went into liquidation.
0:47:41 > 0:47:48Then there was a delay finding another builder, making this a year-long process.
0:47:48 > 0:47:51But now they have finished and they've turned this
0:47:51 > 0:47:56ordinary three-bed terraced house into a four-bed house that I think is rather special.
0:47:56 > 0:48:00In terms of style, we wanted it to look like a Victorian house from the front,
0:48:00 > 0:48:05but to look modern and contemporary once you came through the door and I think it succeeded.
0:48:05 > 0:48:12What we decided was we wanted to always make this a big spacious family house with lots of light.
0:48:16 > 0:48:20There is a wonderful calming feeling about this house now.
0:48:20 > 0:48:25What a huge difference to that drab, tired property I saw a year ago.
0:48:25 > 0:48:33But I suspect they may have gone over their £130,000 to £150,000 proposed budget.
0:48:33 > 0:48:36Did we really say 130 to 150?
0:48:36 > 0:48:41We smashed that by some margin as I think you probably would have guessed.
0:48:41 > 0:48:46I think we spent, if you include everything, including the fitted furniture
0:48:46 > 0:48:49and bits and pieces of the loose furniture, about £225,000.
0:48:51 > 0:48:55£225,000 to make this house a home is a reasonable outlay
0:48:55 > 0:49:00on a place Ness and Scott bought for £695,000.
0:49:00 > 0:49:06With costs and fees they will have invested nearly £930,000.
0:49:06 > 0:49:11So was this money well spent? What do two local estate agents reckon?
0:49:11 > 0:49:16My first impressions of the property are really good quality has been done, very stylish fittings,
0:49:16 > 0:49:19and the kitchen has been done beautifully,
0:49:19 > 0:49:23especially with the bi-fold doors onto the garden, and a great size.
0:49:23 > 0:49:27The loft conversion is done to a very high standard, in keeping with the rest of the house.
0:49:27 > 0:49:30The overall standard of work is second to none.
0:49:30 > 0:49:33It's certainly one of the very best I've seen.
0:49:33 > 0:49:38With their total costs heading towards £930,000,
0:49:38 > 0:49:42has finishing the house to a high standard paid off?
0:49:42 > 0:49:47If we were to put it onto the open market, we'd expect it to achieve in the region of £980,000.
0:49:47 > 0:49:51I would put this on the market for £975,000.
0:49:51 > 0:49:54So not huge returns here,
0:49:54 > 0:49:58maybe a pre-tax profit of around £45,000 to £50,000.
0:49:58 > 0:50:01What do they make of the resale valuations?
0:50:01 > 0:50:05I think it's more than we would have expected. Um, but...
0:50:05 > 0:50:10And it's more than we've spent added to what we paid, which is pretty good, I suppose.
0:50:10 > 0:50:12- Which is a bonus. - Yeah, good news.
0:50:12 > 0:50:16So financially it does stack up fine.
0:50:16 > 0:50:19What are their reflections on their year-long project?
0:50:19 > 0:50:22It's been painful, but worth it, I think.
0:50:22 > 0:50:25Yeah, I'm sure we'll forget all the pain in the future.
0:50:25 > 0:50:27Now, with the house just about completed,
0:50:27 > 0:50:33they can concentrate on caring for and bringing up Monty in their stunning new home.
0:50:42 > 0:50:46Now it's time for us to go back to Folkestone in Kent
0:50:46 > 0:50:53where old friends and new property developers Alistair and Nina purchased a top-floor flat
0:50:53 > 0:50:57in this grand building with a not so grand interior for £58,000.
0:50:57 > 0:51:03But they had a plan for it. In fact, they each had different plans.
0:51:03 > 0:51:07- So what kind of budget have you got? - We're going to try to get it under about £7,000.
0:51:07 > 0:51:11- £5,000.- Time scales for the work?
0:51:11 > 0:51:16We were going to turn it round in two months, but I think it's probably three, so four maybe.
0:51:16 > 0:51:19No, I still think it should be turned around in 6-8 weeks.
0:51:19 > 0:51:24- So six to eight weeks, seven grand. And three months...- Five grand. - ..five grand.
0:51:24 > 0:51:27- How does that work?- Not sure. But it will be interesting to see anyway.
0:51:27 > 0:51:31So with budget and time scales already areas of disagreement,
0:51:31 > 0:51:34did their friendship survive the refurbishment?
0:51:34 > 0:51:39It's been four months since we last saw them and their property.
0:51:54 > 0:51:57As well as tidying up the place in terms of decor,
0:51:57 > 0:52:01Nina and Alistair got rid of the horrible suspended ceiling
0:52:01 > 0:52:05and it's looking much better as it's been replastered and painted.
0:52:05 > 0:52:10The renovation is 90% complete and things are taking shape,
0:52:10 > 0:52:14but it turns out that time and money weren't the only things they didn't agree on.
0:52:14 > 0:52:18Well, the fireplace was a bone of contention between me and Nina.
0:52:18 > 0:52:22Nina wanted it stripped out, but I wanted to keep it for two reasons.
0:52:22 > 0:52:28One, I knew that it would make a lot of mess and quite a lot of work to strip it out
0:52:28 > 0:52:31and the second is it is an original feature
0:52:31 > 0:52:35and I believe in trying to keep original features within the flat.
0:52:35 > 0:52:38It's proved to a certain extent Nina's right
0:52:38 > 0:52:42in that the work involved in stripping it has been considerable
0:52:42 > 0:52:45but the features we see, the art deco design
0:52:45 > 0:52:51and the typical 1930s marbled tiles
0:52:51 > 0:52:53I think will come through as worthwhile
0:52:53 > 0:52:59once the process is finished and it's all tidied up.
0:52:59 > 0:53:01I'm with Alistair on this one.
0:53:01 > 0:53:05It's a real luxury to be able to retain period features if you can.
0:53:05 > 0:53:10But something I hope they didn't retain was that nasty cramped kitchen.
0:53:17 > 0:53:23Well, in here we used to have a cylinder in the corner and a wall which we've knocked down,
0:53:23 > 0:53:28put in a combi boiler for the hot water and essentially made better use of the kitchen.
0:53:28 > 0:53:33Obviously new kitchen tiles, gas cooker, new window, and that's about it.
0:53:33 > 0:53:39Nina had planned on a £5,000 budget, but Alistair thought £7,000.
0:53:39 > 0:53:41Were either of them right?
0:53:41 > 0:53:45- I was closer.- But then we changed the whole concept.- We did, yes.
0:53:45 > 0:53:50But it was a conscious decision. We decided to aim for a different market effectively,
0:53:50 > 0:53:53so improved a lot of the finishes and by the time
0:53:53 > 0:53:57we finish, there's a couple of hundred pounds left to spend
0:53:57 > 0:54:02on finishes and carpets, but we'll come out just under £11,000.
0:54:02 > 0:54:05What about their estimated time scale?
0:54:05 > 0:54:09The time scales have slipped. Of course, they generally do on projects
0:54:09 > 0:54:13- so it's taken the best part of three months really.- Four months.
0:54:13 > 0:54:15Three or four months, is it? Four months now.
0:54:15 > 0:54:18Even now they've nearly finished, they can't agree on the time scale
0:54:18 > 0:54:23but hopefully there was enough agreement along the way to keep their friendship intact.
0:54:23 > 0:54:26- We're still talking, aren't we? - Yeah.
0:54:26 > 0:54:30- We have quite a satisfactory business relationship.- Exactly, yes.
0:54:30 > 0:54:33- We never had a big row really, did we?- No, I don't think we did.
0:54:33 > 0:54:36- No, and you never hit me. - No. Well, not often.- No.
0:54:36 > 0:54:38The teeth marks don't show at all.
0:54:38 > 0:54:42Well, they certainly got their teeth into this
0:54:42 > 0:54:48with re-plumbing, re-wiring, new central heating and double glazing, as well as the cosmetic work.
0:54:49 > 0:54:53We asked two local estate agents to give us their opinion on it.
0:54:56 > 0:54:58Coming into the property, it looks like
0:54:58 > 0:55:01they've spent some time and effort trying to make it more presentable
0:55:01 > 0:55:05and I think it's definitely an improvement on what it was.
0:55:05 > 0:55:08It's changed a lot since I first saw it.
0:55:08 > 0:55:11They've obviously enhanced a lot, the kitchen and bathroom are very nice.
0:55:11 > 0:55:16Overall a fairly good impression, fairly good for tenant appeal too.
0:55:16 > 0:55:21Speaking of tenants, what could this place be rented out for?
0:55:21 > 0:55:26To rent this apartment out would be in the region between £500 and £550 per calendar month.
0:55:26 > 0:55:32I would advise the client to advertise it for £550 per calendar month.
0:55:32 > 0:55:36We're not looking to rent, although if we can't sell it in two months
0:55:36 > 0:55:40then maybe we'll look at renting in the short term.
0:55:40 > 0:55:47Having paid £58,000 and spent £11,000 on the renovations, Nina and Alistair's total spend
0:55:47 > 0:55:51was £69,000, making the rental return very attractive
0:55:51 > 0:55:54at between 8% and 9½%.
0:55:54 > 0:55:56But as they said, they're all set to sell,
0:55:56 > 0:56:00so what would the estate agents estimate for that?
0:56:00 > 0:56:03The value of this apartment would be around £90,000.
0:56:03 > 0:56:06It would be potentially higher if the building were
0:56:06 > 0:56:08of a greater standard in terms of its common areas.
0:56:08 > 0:56:13I would recommend you advertise it for a maximum of £95,000
0:56:13 > 0:56:17and hopefully achieve something just over £85,000.
0:56:17 > 0:56:22That still gives us, what, 25%, 30% return?
0:56:22 > 0:56:24Well, yeah, 20% anyway.
0:56:24 > 0:56:27Which is more than you get in the bank, so yes, we're happy.
0:56:27 > 0:56:31Based on the estate agents' recommendations, they could see a potential profit
0:56:31 > 0:56:36of between £16,000 and £21,000 minus the usual selling expenses.
0:56:36 > 0:56:39But Alistair is reserving judgement.
0:56:39 > 0:56:42It's one thing for the price to be given to us, it's another thing
0:56:42 > 0:56:44for it to actually be sold at that price.
0:56:44 > 0:56:47When it's sold at that price, come back again and ask if I'm happy.
0:56:51 > 0:56:57Well, that's it for now. We'll have more auction stories to warn or inspire you next time.
0:56:57 > 0:57:01- So make sure you join us then. - Goodbye.- Goodbye.
0:57:10 > 0:57:14Subtitles by Red Bee Media Ltd
0:57:14 > 0:57:17E-mail subtitling@bbc.co.uk