Episode 59 Homes Under the Hammer


Episode 59

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-Like many, we're interested in property.

-That means every aspect.

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I know I'm always on the look out for a bargain.

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But how do you go about getting one?

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Well, a very reliable way is to go to a property auction.

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Now, there are property auctions all over the country

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and throughout the year, so you really are spoilt for choice.

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So let's see which properties made their buyers part with their cash on today's show.

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This house in Gainsborough in Lincolnshire

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turns out to be a bit of a challenge.

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HE CLEARS HIS THROAT

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Right. Well, we'll have to leave that till later.

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In Balham, London, this property alerts my instincts

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to a possible great find.

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That feeling is a good feeling.

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I like it.

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And this flat in Folkestone, Kent, leaves me feeling very liberated.

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If you can stare out on that,

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you're never going to feel like you're closed in.

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All these properties went to auction and we'll find out who bought them

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and what they paid for them when they went under the hammer.

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Thank you, sir.

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This is Gainsborough, an attractive market town in Lincolnshire

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and Britain's most inland port.

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It's in easy reach of Lincoln, Doncaster and Scunthorpe

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so let's hope it harbours some potential for development.

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Well, the property I'm here to see is just a short stroll from the river,

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which is literally just down there.

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However, you do also have to walk past a cement factory on the way,

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which means you get massive trucks trundling past your front door.

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But the property itself doesn't look too bad from the outside.

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It's this two bed Victorian semi.

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It had a guide price of 50,000 quid.

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Let's take a look inside.

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Well, there might be a concrete plant just along the road

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but how solid an investment was this house, guided at 50,000?

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Well, the outside looks sturdy enough.

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So through the double-glazed door, that's a good start.

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You've got double glazing in the windows as well, which is good news.

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It's a bit, you know, old fashioned when you first walk in for sure

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but nice and light - that bay window really makes a big difference.

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Through this little area here, you've got your stairs up to your bedrooms then through into the rear.

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Living room.

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Oh, dear.

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What on earth is gong on with this wall?!

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Look at the mould!

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Look at this one. Unbelievable!

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Have you ever seen a mould like that? Pink and furry?

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This is like some natural history exhibit, not a house!

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Where on earth is it coming from? It's interesting, it's an internal wall...

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Actually no, it's partly an external wall,

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so maybe it's coming from lead flashing, I don't know.

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That is not brilliant. Let's see if we can see round the back.

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There's this tiny little kitchen here which needs a bit of work doing to it

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but I'm really not bothered about that, I want to sort out whatever's going on,

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whatever's going...

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HE CLEARS HIS THROAT

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Right. Well, we'll have to leave that till later.

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Hmm not great. Doors that don't open, damp on the units

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and an interesting array of mould.

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However, it may just be a leaking pipe or a gutter that's causing all this grief,

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so, hopefully, it's not as bad as it looks.

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So double bedroom on the front there and another double bedroom at the back

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and oh, well, surprise, surprise, even more mould.

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This really is a house for fungus fanatics isn't it? Blimey.

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But you know, I don't think this is related to the one downstairs.

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Looking out there, I think you've got issues with guttering,

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amongst other things, which is creating that,

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which leads me to think that the problems downstairs are created

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probably by some leaky pipe work or other,

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and that would tie in with the position of the bathroom,

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which really isn't ideal.

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It's off the second bedroom here, that's your bathroom and toilet.

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You know, it's tired, it really needs replacing,

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but more importantly, it's in the wrong place.

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You really don't want to travel through the bedroom to get to it.

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So what could you do?

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Well, possibly put a corridor here

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and then you'd have separate access to the loo from each bedroom.

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You do lose quite a lot of space. You could move the stairs around perhaps.

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That'll be an expensive job.

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Other people in this street have built an extension,

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put another bathroom and toilet downstairs

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and kept this as an en suite.

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That comes down to how much it's going to cost to do it

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and how much it'll add value to the price of the property.

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Think about it. Might be worth doing, might not.

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# Let it grow

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# Let it grow... #

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So there might be some merit in growing the size of the property

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by putting a bigger extension on the back.

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That might then give scope for a much-needed layout rejig upstairs,

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but one thing you do need to stop getting worse is the damp.

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However, despite that, I think this house is really pretty good.

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A nice bonus - which you might not expect in this kind of property - a decent-size garden.

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Bit of lawn, a few bushes and shrubs and heathers there.

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The only downside though, THAT is a factory.

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It makes exhausts for heavy goods vehicles.

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You can't have everything I guess.

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It might not be ideal but a bit of fencing and some decent planting would help.

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For the most part, the presence of the factory wouldn't be noticed.

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It might put some buyers off but it's unlikely to affect its rental appeal.

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What does a local estate agent make of this two-bed semi?

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My first impression is that it needs a general overhaul,

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a complete refurbishment,

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but I'd recommend an extension to the rear elevation of the property

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to include a ground floor bathroom or WC, and an en-suite off the master bedroom.

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Ah ha! That's not a bad idea.

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What it would save is having to turn those stairs or corridor off the bedrooms.

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But if that was done, what kind of returns could we see from this house that was guided at 50,000?

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For two-bedroom properties such as this, with the right application

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and extension, I believe the property could be worth in the region of £80,000 to £90,000.

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And on the rental market?

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Once fully renovated, I believe this property would rent

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somewhere between £350 to £395 per calendar month.

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Well, despite appearances in certain parts of the house,

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I think this property has a lot going for it.

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Yes, it needs a bit of money spending on it

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but I think do that and it could show the right kind of growth.

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

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We move back now to Gainsborough for lot number 12,

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which is a traditional semi-detached house.

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What's it going to be? 40,000?

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40,000. At £40,000 I'm bid.

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At £40,000 I'm bid, thank you very much. 41, 42, are you? 42, 43, 44.

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At £44,000 I'm bid. At £44,000 I'm bid. 45.

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£45,000 I'm bid.

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At £45,000 I'm bid. And 500.

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45,500, 46, 500, 47, 500.

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47,500. 48 for you. £48,000 I'm bid, the bid is here at 48,000. 500 now?

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At £48,000.

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At £48,000, sir, for the first time,

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second, third and last time at £48,000. Are there any more bids?

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Gentleman on the right there, sir. Thank you.

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So for £48,000, the successful bidders were Shaun and Luke.

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It was Luke who went to the auction with his dad, who he persuaded to do the bidding. Well, it worked.

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They're now proud owners of this large, slightly mouldy two-bed house.

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I met them there to find out more.

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Shaun, Luke, lovely to meet you both. Congratulations.

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Why did you want to buy this place?

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I dunno. We looked at a few, didn't we?

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And this one wasn't even one of our top ones.

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It was further down the line that we wanted

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but this one came up at the right price so we went for it.

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-So it's mainly the price that sort of persuaded you.

-Pretty much, yeah.

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Which is one of the reasons we come up north as well, cos they're cheaper.

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-Where are you originally from?

-Essex.

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So something like this down there is going to set you back how much?

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-200 grand probably.

-Yeah.

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So you almost get three for the price of one.

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-Four.

-Four for the price of one.

-Yeah, pretty much.

-It's amazing.

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But, of course, the key thing is not that sale prices are a quarter of

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those in parts of the south but that the rental return is still strong.

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That makes the yield on the rental market very attractive.

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Tell how you know each other and what you do.

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-Well, we've been best mates since we were four years old.

-Aw.

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We're both 30 now, so it's been a long time.

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We've got our building company that we're both directors in that we started six years ago

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and it's going very successful at the moment, so we just thought we'd try our hand

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in something else to make some money for the future, really.

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-Right. So tell me exactly what you are going to do to the property.

-It's just a basic full refurb.

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Kitchen out, bathroom out, strip all the wallpapering out, up with all the carpets, maybe the extension.

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Tell me more about that. What would that be?

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If we do the extension, we'll try and make the kitchen bigger,

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so it's a bit bigger like you see next door -

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they've got an extension, they made their kitchen bigger.

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They've brought the bathroom down, turned it into a three-bed upstairs,

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and that would basically be our plan.

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We're thinking about moving the staircase over to there

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so, turn it round so there's more room upstairs.

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We can get a corridor in down to the third bedroom.

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-Where would the third bedroom be?

-Where the bathroom is now.

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-So you'd lose that bathroom.

-Yeah.

-Bring the bathroom down here.

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Luke and Shaun have budgeted just £17,000

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to do the whole house, including the extension.

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Although they seem to have worked out exactly what they want to do with it,

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there was one thing they missed.

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Let's talk about this wall, then, the one with all the mould. What do you know about that?

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-When we come and looked at it, I'm sure it wasn't here.

-It wasn't.

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-It wasn't here when we looked at it.

-How long ago was that?

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Probably about six to eight weeks or something, and it wasn't here.

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-Wow. Must have been a shock when you saw it.

-It was.

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Yeah, when we walked in, it was a shock.

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-You're sure you came to the right house, aren't you?

-Yeah, I hope so.

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-100%. It is the right house.

-It is, it is.

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I've got all the paperwork, I know it's the right house.

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# It's a kind of magic... #

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So the mould seems to have appeared as if by magic.

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Let's hope they can make it disappear just as fast.

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What's the timescale for sorting it out?

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-Without the extension, four weeks.

-Without the extension.

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With the extension probably more like between four and seven.

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-Still quite quick.

-Yeah, pretty quick.

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We'll be coming up here, we'll be living in here as well.

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I'll be staying here, so I can work till seven or eight o'clock at night.

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-What will your involvement be?

-I've moved into the office, trying to get work in,

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lot of ordering materials, pricing the jobs up and stuff like that,

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so I'll carry on doing my day-to-day job

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to ensure there's plenty of work for when the boys get back.

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-But you're sharing the profits.

-Yeah, pretty much.

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-But you're doing all the work.

-Yeah, seems like a fair deal, doesn't it?

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-Good one.

-Yeah, but he'd be working on the sites down in London anyway, so it's no different really.

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That's what I've been telling him, anyway.

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-Congratulations, guys.

-Thank you.

-We look forward to seeing how you get on.

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Cheers.

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Well, I think Shaun and Luke have chosen well for their first property development project

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and I know that they'll work hard at sorting this place out.

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Will they decide to do the extension or not

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and will they sort the damp out in that wall?

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You can find out later in the show.

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I'm smack-dab up in the hustle and bustle of Clapham in Southwest London.

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However, just down the road is a peaceful enclave of calm and tranquillity.

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Balham in Southwest London, well, it's always been Clapham's poorest relation.

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Not any more.

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Now, today's property is in the Nightingale triangle

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and it's the most desirable part of Balham,

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due to the large period properties that are found here.

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Properties in this quiet corner of Balham command a high price.

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A four-bedroom Victorian townhouse can expect to sell for just under a million quid.

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This is the one I'm here to see.

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It's a little more modest but still brimming with period features.

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It has three bedrooms and came with a guide price of £600,000.

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When I walk into a house, I get the feeling,

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and in this house, I've got a good feeling.

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There are some beautiful original features intact.

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Look at all that up there, you've got this wonderful newel post

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and please, let's hope, yes, for some original Minton tiles.

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Now look at all of that. Look.

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they are going to be really well-preserved,

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cos I bet this carpet has been down for years and years.

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It's got a really nice size front lounge area

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with a beautiful fireplace.

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Second room here, towards the back of the property.

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You could actually think about knocking this through, creating one big room.

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Again, another nice fireplace with these beautiful tiles.

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I mean, look at these lovely, lovely colours.

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Oh, there's a lot going on in this house - you've got doors leading out to the garden

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and if you look up at the ceiling,

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you've got a lovely ceiling rose with some beautiful cornicing.

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That feeling is a good feeling. I like it.

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# What a feeling... #

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Grand high ceilings and period features galore -

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what more could you ask for?

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A multi-coloured ceiling, I hear you say?

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Well, it's got that, too!

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# What a feeling... #

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To the rear is a third reception room,

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which I imagination would have originally served as kitchen.

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It has French doors to the garden,

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which is overgrown at present but it's a real sun trap.

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# I can have it all... #

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Let's take a look upstairs at the bedrooms.

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# What a feeling... #

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Well, this is a the master bedroom

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and, if you ask me, it looks rather grand.

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Again, look, you've got one of these nice, big fireplaces

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and all of these magnificent windows letting in so much light.

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Sadly, they're not that magnificent,

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cos if you take a look, they're aluminium double glazed,

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they don't go with the character of the property.

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Something original like sash windows would look amazing there.

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The second bedroom on the top floor is also a good size.

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The windows at the rear of the property are all original sash casement

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and I'd like to see them refurbished.

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On to the mid landing and the bathroom,

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which is in need of modernisation.

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And next door, the kitchen, which would have originally been a bedroom

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with the kitchen downstairs in the third reception room.

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But I did like that sunroom.

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Perhaps the kitchen could be moved to the second reception room?

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There are so many options!

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Now, there's two ways to add value to this house.

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Up there, by converting the attic space...

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..and out here.

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You see, a loft extension and a side extension

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could give you another bedroom, a much bigger kitchen

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and add as much as £200,000 to the end value.

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Extend the house and extend your profit margin. Thank you very much.

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This house has a lot of nooks and crannies

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and that includes a huge basement.

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To be a successful developer,

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it's important to see the potential in a property

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and this terraced one has oodles.

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We asked a local estate agent to give us his opinion on this place,

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which had a guide price of £600,000.

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Extension-wise, it's got enormous potential.

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You can extend out to the kitchen, that's to the side return,

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and obviously into the loft to create a master bedroom with en suite.

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If extended into the loft space to create an extra bedroom,

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what could this property achieve on the rental market?

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As a four bedroom house, your rental achievable

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could be in excess of £2,500 per calendar month.

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And a sell-on valuation?

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The potential asking price could be £950,000.

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A house with bags of potential in a hugely desirable area.

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What is not to like?

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Let's go to auction and find out who that winning bidder was.

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Start at 600 on this.

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I'm not going to go below six, it's worth that all day long.

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600 right at the back on my right, 600.

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605? 605.

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610. 615.

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620.

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625. 630. 635.

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640. 645.

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650. 655.

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660. 665.

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670. 675. 680. 685.

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690.

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Take it you, 690, another spot. 690. 695.

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700. Looking for 700.

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First time, second time,

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third and last time at 695. If you're all done?

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With a successful bid of £695,000, the happy couple are Scott and his wife, Ness.

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This will be their new home and with Ness due to give birth

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to their first child in under four months,

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they'll need to get cracking on the renovation.

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# Hey, hey, baby's on the way... #

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Guys, congratulations.

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-Thank you.

-You must be thrilled you got this at auction.

0:18:440:18:47

-Yes.

-Very excited. Yes.

-So is this the home of your dreams?

0:18:470:18:50

-For the next short while.

-Yes. I think we've looked at so many houses

0:18:500:18:55

and this one has ticked most of the boxes I would say, apart from perhaps the state of it.

0:18:550:19:01

What was it that you liked so much to want to buy it?

0:19:010:19:04

Well, it's a great spot, it's got potential.

0:19:040:19:08

We've been wanting to do a project for a little while.

0:19:080:19:11

We looked at about 25 other houses, didn't find one that we both liked.

0:19:110:19:15

I think the one thing that really appeals to me

0:19:150:19:18

is Wandsworth Common is just on the door as well,

0:19:180:19:20

which is a lovely place, especially on a day like today

0:19:200:19:23

when it's sunny so, yeah, great location. We're really happy.

0:19:230:19:26

-Now, I can see you rubbing your tummy there.

-I am.

-Baby on the way,

0:19:260:19:29

how long have you got to go?

0:19:290:19:31

Well, I'm just about five and a half months now, so, yeah.

0:19:310:19:35

That is going to be fantastic for you.

0:19:350:19:37

You've got the common, it's going to be an amazing area,

0:19:370:19:40

you can take Baby for lovely walks.

0:19:400:19:41

So this will be a lovely family house for you

0:19:410:19:45

but obviously not in the state that it's in.

0:19:450:19:47

-No.

-No.

-So, Scott, let's talk about that.

0:19:470:19:50

It needs a little work, doesn't it?

0:19:500:19:51

For starters, that's a rather interesting ceiling up there.

0:19:510:19:54

Colours aside, the ceiling is great and we'll be keeping that.

0:19:540:19:59

I'm happy to hear Scott and Ness are as taken with the period character of this house as I am.

0:19:590:20:06

So what are their plans for it?

0:20:060:20:08

Will you decorate, will you renovate, will you add to this house?

0:20:080:20:12

Yes, we have just appointed an architect

0:20:120:20:14

and hopefully we will have some plans for planning in three or four weeks.

0:20:140:20:18

So you are looking at extending?

0:20:180:20:20

Extending up and then out the back

0:20:200:20:22

and out the side and clearing the rest of it out and new everything.

0:20:220:20:25

What sort of budget are you looking at to do the work here?

0:20:250:20:28

-Well, it's a bone of contention but...

-With both of you.

0:20:280:20:31

Let's start with Scott. How much will you spend?

0:20:310:20:33

Well, when we sat down before the auction, I reckoned we could do it for 130

0:20:330:20:38

but I think it might go up to sort of 150.

0:20:380:20:42

So are you thinking about adding an extra bathroom and bedroom here?

0:20:420:20:46

Yeah, so we're going to go into the loft, loft conversion,

0:20:460:20:49

definitely one bedroom, maybe two, and an en suite up there.

0:20:490:20:53

So that will give us one or two extra bedrooms.

0:20:530:20:56

This room we're hoping to knock through

0:20:560:20:58

and then have a much bigger kitchen on the back of it as well.

0:20:580:21:02

So you are going to eat into your garden space a little.

0:21:020:21:05

-A little.

-A little, yes.

-And we're still discussing whether we can extend in glass.

0:21:050:21:10

-Yeah.

-But it's an unresolved discussion at the moment.

0:21:100:21:13

That may eat into that budget.

0:21:130:21:15

Yes, we've had some discussions with a specialist company

0:21:150:21:18

and it's not off-the-planet expensive, so maybe.

0:21:180:21:21

That would look fabulous and it would also let so much light into this house.

0:21:210:21:25

-I believe you, Lucy, and I agree with you.

-I'm actually like that idea, Scott. Sorry, Ness.

0:21:250:21:29

I'm thinking on a practical level and the builder said the same as me, I think, didn't he?

0:21:290:21:34

That it would be kind of like a greenhouse and the cleaning side of it.

0:21:340:21:38

How do you clean a big glass box?

0:21:380:21:41

You have such a traditional house here -

0:21:410:21:43

it's always such a lovely surprise element

0:21:430:21:45

when you walk through a house like this to then go, "Wow".

0:21:450:21:48

-You see something you're not expecting at the back.

-Yeah.

-I agree.

-Sorry.

0:21:480:21:52

-We'll see.

-It'd be nice to combine something modern with...

0:21:520:21:55

It's an old house. If we can get something and stretched the budget, we may do something.

0:21:550:21:59

Yeah, you have to keep a bit of the budget back for a cleaner,

0:21:590:22:02

that'll clean the glass for you.

0:22:020:22:04

Exactly. Or self-cleaning glass.

0:22:040:22:06

# Hey, it's a real good day

0:22:060:22:09

# Cos baby's on the way... #

0:22:110:22:15

Well, let's hope they find it easier to decide on baby names.

0:22:150:22:20

# Baby's on the way... #

0:22:200:22:22

Scott is a commercial property project manager

0:22:220:22:25

and Ness is a risk manager for a bank,

0:22:250:22:28

so they should have many of the skills necessary to ensure a smooth renovation.

0:22:280:22:33

But I've got one more big question to ask.

0:22:330:22:36

So where's the baby's room going to be?

0:22:370:22:39

The baby's room is the middle bedroom, so next to our room.

0:22:390:22:42

Do you know what you're having? Girl or boy?

0:22:420:22:44

-Big secret.

-A blue or a pink room?

0:22:440:22:46

-Big secret.

-Blue room.

0:22:460:22:48

-Blue room.

-Yes.

-You're hoping. But it could be a pink room?

0:22:480:22:53

-Could be a pink room as well.

-We'll have to wait and see won't we?

0:22:530:22:56

-We will have to wait and see.

-This house will look fantastic.

0:22:560:22:59

It's in a great area, you know, it really has got the bones here to be amazing.

0:22:590:23:03

-Yeah.

-Hope so.

-And it's going to be really interesting to see what you do out the back there.

0:23:030:23:07

-We look forward to you coming back.

-See the glass box.

0:23:070:23:10

The glass... Well, you could have swung it with your...

0:23:100:23:13

-You know what you're talking about, Lucy.

-Of course I do.

-Exactly.

0:23:130:23:16

Guys, it's been lovely meeting you. Good luck with this and the baby.

0:23:160:23:19

-Thank you.

-Hopefully we'll see the baby when we come back.

0:23:190:23:23

-Thanks, Ness.

-Thanks.

-Thank you.

-Thank you.

-Thanks.

0:23:230:23:25

Well, it's good the couple have got a healthy budget

0:23:260:23:29

but they've never taken on such a large project.

0:23:290:23:32

Will it prove to be too much for them?

0:23:320:23:34

Especially as they've got a baby on the way

0:23:340:23:37

and will we see that glass box at the end of this house

0:23:370:23:40

or will Ness get her own way?

0:23:400:23:42

You can find out how it all goes later in the programme.

0:23:420:23:45

Coming up, this flat in Folkestone, Kent

0:23:460:23:51

brings out the demolition man in me.

0:23:510:23:53

How great would it be to actually just remove this wall?

0:23:530:23:56

In south London, did Scott and Ness get the look they'd hoped for?

0:23:560:24:00

We wanted it to look like a Victorian house

0:24:000:24:03

from the front but to look really modern and contemporary once you came through the door.

0:24:030:24:07

But first back to Gainsborough, Lincolnshire, where Shaun is as keen to see the renovation as we are.

0:24:070:24:13

This is the first time I've seen it since it's been completed.

0:24:130:24:16

In the pretty Lincolnshire town of Gainsborough,

0:24:190:24:22

Essex-based builders Shaun and Luke

0:24:220:24:25

bought a three-bed semi at auction for 48,000.

0:24:250:24:28

Although apparently structurally sound, it did come with some issues.

0:24:280:24:32

It backed onto a factory area and the bathroom could only be reached through another bedroom.

0:24:320:24:37

But worst of all, there were signs of damp and mould.

0:24:400:24:43

News to Shaun and Luke.

0:24:430:24:44

When we looked at it, I'm sure it weren't here.

0:24:470:24:49

-It wasn't.

-It must have been a shock when you saw it.

0:24:490:24:52

-Yes.

-Yeah, when we walked in, yeah, it was a shock.

0:24:520:24:55

-You're sure you came to the right house aren't you?

-Hope so!

0:24:550:24:58

# It's a mystery

0:24:580:25:01

# Oh, it's a mystery

0:25:010:25:03

# I'm still searching

0:25:030:25:06

# For a clue... #

0:25:060:25:08

So it was a bit of a mystery to the pair where all the mould and damp had sprung from.

0:25:080:25:12

But having bought this fungal farm, there was not MUSHROOM for regrets,

0:25:120:25:17

so armed with a £15,000 budget,

0:25:170:25:21

it was down to Luke to solve the mystery.

0:25:210:25:24

Just nine weeks later, we're back.

0:25:240:25:27

And with a tidy-up at the front, it certainly looks promising.

0:25:280:25:31

Inside, well, the old electrical appliances have been removed...

0:25:330:25:38

..and the rooms completely refurbished.

0:25:390:25:42

In the back reception room, there are now patio doors out onto the garden

0:25:420:25:46

and the kitchen area has undergone a total refit.

0:25:460:25:50

But perhaps most impressive of all, there's now a new extension,

0:25:520:25:56

which houses a brand-new bathroom suite.

0:25:560:25:59

So Luke's been pretty busy.

0:25:590:26:01

So out here, we've blocked the old kitchen doorway up

0:26:020:26:06

and there was a window here and we cut that out

0:26:060:26:08

and put the French doors in and we figured this gives us more light

0:26:080:26:11

into the dining room and extra kitchen space, like, for the units.

0:26:110:26:15

And coming along here, this used to be an outside toilet and a shed

0:26:150:26:19

but we knocked all that down and put up a new extension

0:26:190:26:22

where we moved the bathroom to.

0:26:220:26:23

We had a bit of an issue with the drains, so we had to move the manhole, run new drains,

0:26:230:26:27

but overall, I'm pleased with it.

0:26:270:26:29

And the addition of the extension to house the downstairs bathroom

0:26:290:26:33

has allowed changes to be made upstairs...

0:26:330:26:36

..particularly with the back bedroom,

0:26:440:26:47

which previously had the bathroom off it, as Shaun explains.

0:26:470:26:50

So this used to be the old bathroom, this room,

0:26:520:26:55

so we've basically taken it out and moved it downstairs

0:26:550:26:58

into the new extension, carpeted, redecorated it,

0:26:580:27:01

so hopefully a young family could use it as a nursery

0:27:010:27:05

or a walk-in wardrobe or whatever they choose.

0:27:050:27:07

Over here, this is where the old fire was in this bedroom.

0:27:070:27:10

We've taken it out, replaced it with a full gas central heating system, new boiler.

0:27:100:27:16

And then up here... Then we've done new carpets, lined all the walls,

0:27:160:27:20

painted the walls, new coving up, new doors and that's about it.

0:27:200:27:26

So the extension solved one problem but what about that mystery mould?

0:27:260:27:30

# Begone, begone... #

0:27:300:27:34

On this wall here, we had a lot of mould when we came here to start the filming

0:27:340:27:39

and we thought it was all from the guttering from upstairs

0:27:390:27:43

but on further investigation,

0:27:430:27:45

we found out that there was a burst pipe in the wall

0:27:450:27:48

in the bathroom, so that got fixed.

0:27:480:27:50

Once that was fixed, we could hack the wall off

0:27:500:27:52

and then let it dry out and then bond and set it

0:27:520:27:55

and we haven't had a problem since.

0:27:550:27:57

Like the mould, Shaun left the house

0:27:570:27:59

and headed back to Essex, leaving Luke to sort out the work.

0:27:590:28:03

Obviously it was hard being away from home for six weeks.

0:28:040:28:09

Obviously, I had to base myself up in this area,

0:28:090:28:12

because it's a two and a half, three hour drive,

0:28:120:28:15

and leave my wife for six weeks. It was hard.

0:28:150:28:18

And being around the same people I was working with day in, day out.

0:28:180:28:21

Yeah, it was hard but it was worth it in the end.

0:28:210:28:25

Luke and his team of builders have done fantastically well

0:28:250:28:29

to complete all the work, including the extension, in just six weeks.

0:28:290:28:32

Did Shaun get involved at all?

0:28:320:28:34

# I'm the invisible man

0:28:360:28:38

# I'm the invisible man... #

0:28:380:28:40

I'm based in Chingford in the office so I didn't really come up

0:28:400:28:43

and do a lot of work on this project, it was all left to Luke.

0:28:430:28:47

This is the first time I've seen it since it's been completed

0:28:470:28:51

and I'm really proud of him and happy with the finished article.

0:28:510:28:55

In fairness to Shaun, he was organising the materials and making sure other jobs they had on

0:28:550:29:00

were kept on track. After all, time is money.

0:29:000:29:03

Well, originally our budget was £17,000 for the whole thing with the extension.

0:29:030:29:07

We ended up creeping over by 1,500 to 2,000, but we hadn't accounted for putting in the French doors

0:29:070:29:14

and the ceiling came down and had to be redone.

0:29:140:29:16

So we were a little bit over but still quite happy with the amount we spent.

0:29:160:29:22

A £19,000 spend on top of a £48,000 purchase price plus costs and fees

0:29:220:29:28

will see their total outlay reach around £70,000.

0:29:280:29:32

So has their investment grown as fast as that mould?

0:29:320:29:36

What do two local estate agents think?

0:29:360:29:38

The property has been finished to an excellent standard,

0:29:430:29:46

improving internal condition

0:29:460:29:47

and making the property more of a modern contemporary feel.

0:29:470:29:51

My first impressions of the property are that it has been brought up to a very good standard.

0:29:510:29:55

I think it will rent very well and it could sell

0:29:550:29:58

although the market locally is a little bit weak.

0:29:580:30:00

Shaun and Luke really saw this as a long-term investment and therefore

0:30:000:30:05

plan to rent the house out, but have they spent their £70,000 wisely?

0:30:050:30:10

I think the property is worth somewhere in the region of £85,000 to £90,000 in today's market.

0:30:100:30:15

I would expect the resale value of the property to be in the region of £80,000.

0:30:150:30:19

-Yeah, I'm happy with that.

-Yeah.

-I'm happy with £85,000 to £90,000.

0:30:190:30:24

I'd take £80,000 for it.

0:30:240:30:26

There could be a small profit on the retail market but they chose

0:30:260:30:30

this area of the country for the potential rental yields.

0:30:300:30:35

I would expect the rental value for the property to be £450 per calendar month.

0:30:350:30:41

I believe the property would rent for somewhere between £450 to £475 per calendar month.

0:30:410:30:46

-Yeah, I think at that money it's pretty much what we were expecting, wasn't it?

-Yeah.

0:30:460:30:51

475 would be a little bit more than what we were expecting, so yeah, 450 and upwards is good.

0:30:510:30:57

Well, even £450 a month, or £5,400 a year off a £70,000 investment

0:30:570:31:04

would bring in a yield of around 8%.

0:31:040:31:07

In the current climate that's pretty healthy. So what next?

0:31:070:31:11

Well, we're going to go back down south, carry on with our building company,

0:31:110:31:17

wait for the six months to come up on this,

0:31:170:31:20

remortgage this and then go straight out and buy another property.

0:31:200:31:24

So it's back down south to Essex for a while and then hopefully go again,

0:31:240:31:29

presumably still as business partners?

0:31:290:31:32

I think we will always work together, me and Shaun.

0:31:320:31:35

It seems to have been successful so far, so I can't see any reason why not.

0:31:350:31:38

No. Maybe when we've made enough money, gone our separate ways

0:31:380:31:41

and nobody's working any more. Maybe then.

0:31:410:31:44

Eventually they may go their separate ways, but for now

0:31:440:31:47

it looks like they're both pulling in the same direction.

0:31:470:31:50

I'm down by the sea on the south-east coast in Folkestone.

0:32:000:32:05

It's had its day as a thriving holiday resort,

0:32:050:32:08

but things are on the up with an increasing number of people moving here from London

0:32:080:32:12

because property-wise they can get a lot more bang for their buck.

0:32:120:32:17

Well, just a five minute stroll from the beachfront is the property I'm here to see.

0:32:170:32:22

Two-bedroom, top-floor flat at a guide price of £44,000 to £50,000.

0:32:220:32:27

This purpose-built block of flats looks imposing and grand from the front.

0:32:270:32:33

Let's hope it keeps up appearances inside.

0:32:330:32:35

Well, you can tell a lot about a flat by the communal areas

0:32:350:32:40

and in this case it's not looking too brilliant.

0:32:400:32:44

These are the responsibility of either the management committee or the landlord

0:32:440:32:48

and as you can see, it's all a bit grubby.

0:32:480:32:51

So not the most sparkling of communal areas and let's hope the flat itself improves a bit.

0:32:540:32:59

You have to ignore the clutter. What have we actually got?

0:32:590:33:02

A bit of a suspended ceiling.

0:33:020:33:04

You can tell we're right on the top, you can see the concrete!

0:33:040:33:07

Large bedroom there, we quite like that, and then through into your main living area.

0:33:070:33:11

It is a nice size, but by far the most impressive feature is that view.

0:33:110:33:17

It doesn't matter what size the flat is, if you can stare out on that,

0:33:170:33:21

you're never going to feel like you're closed in.

0:33:210:33:24

A view which includes the Folkestone Downs is quite a treat.

0:33:240:33:27

On the down side is that ceiling.

0:33:270:33:29

A suspended ceiling isn't the most attractive feature

0:33:290:33:32

in a period building, and it appears to be suffering from damp.

0:33:320:33:37

There is one decent-size bedroom, but the other leaves a lot to be desired.

0:33:370:33:41

Not only is it pokey and small, it's not in great condition.

0:33:410:33:45

Still, it's not the only thing suffering from a lack of space here.

0:33:450:33:49

Well, unfortunately the compromise for having that fabulous, large,

0:33:490:33:53

lovely living room area is here, the kitchen.

0:33:530:33:58

As you can see it is really, really cramped.

0:33:580:34:02

What do you do? Well, I think I've got a solution, but first of all,

0:34:020:34:07

microscopically small boiler to fit in as well. That looks terribly out of date.

0:34:070:34:11

Get that serviced or replaced and then think about the layout in here.

0:34:110:34:15

Actually don't, because I've got an idea.

0:34:150:34:17

I noticed that you've got this wall here in between the living room area and the kitchen.

0:34:170:34:23

Now, it's fairly solid, so it is structural, but how great would it be to actually just remove this wall?

0:34:230:34:30

Maybe with an archway, ideally by sticking some kind of a structural beam across the top there

0:34:300:34:35

and then taking this wall out completely.

0:34:350:34:37

You then extend the kitchen out here, maybe have a breakfast bar coming slightly into this room.

0:34:370:34:41

You can sit here having your breakfast cereal looking out over the view, it's fantastic.

0:34:410:34:46

The only fly in the ointment is this is a leasehold property and therefore probably before you get involved in

0:34:460:34:51

any major structural works, you've got to get hold of the landlord and get his or her permission.

0:34:510:34:56

You've also got to think about whether the expensive structural work would be worth it.

0:34:560:35:01

These flats will have a ceiling price

0:35:010:35:03

and unless you are going to be living in it yourself,

0:35:030:35:05

you should probably keep the renovation to a minimum.

0:35:050:35:08

We asked a local estate agent what he thought about it.

0:35:080:35:12

The flat needs a lot of TLC.

0:35:120:35:14

It's in a building which has been

0:35:140:35:17

neglected to a certain extent for some time and it wouldn't take a lot of money to actually revive it

0:35:170:35:23

so that it is more attractive on the approach through the corridors

0:35:230:35:28

and obviously leading to the apartment itself.

0:35:280:35:31

The layout of this particular apartment is not to everyone's liking.

0:35:310:35:36

I think some people would say that having the bathroom immediately adjacent to the kitchen,

0:35:360:35:41

although from a plumbing perspective one can consider why that's done,

0:35:410:35:45

it's not the more ideal situation.

0:35:450:35:47

You have to pass the bathroom on the way to the kitchen.

0:35:470:35:49

Some of the rooms have suspended ceilings

0:35:490:35:51

and that might be hiding a nest of problems, I think,

0:35:510:35:56

and in fact my first view of those particular ceiling areas exposed

0:35:560:35:59

suggests there is some damp that needs to be dealt with.

0:35:590:36:02

Lots of work to do then, but when this place is back

0:36:020:36:06

in ship-shape condition, what could it be worth?

0:36:060:36:10

Once this flat has been renovated, and we'll say to a high standard,

0:36:100:36:14

this apartment would be worth in the region of £100,000.

0:36:140:36:17

And for rental?

0:36:170:36:19

A two-bedroom apartment in this block would fetch between £500

0:36:190:36:24

and £550 per calendar month in good condition.

0:36:240:36:27

So, all in all, a good-sized flat in a decent location.

0:36:280:36:32

Nice place to live or something that could be a good rental or resale money earner.

0:36:320:36:37

Let's see who bought it when it went under the hammer.

0:36:370:36:40

Start me where you will on that one.

0:36:440:36:46

We've got a very good guide price of 45 to 50.

0:36:460:36:48

We'll say £45,000 and hands should be shooting up everywhere. 45,000?

0:36:480:36:52

Well, one hand has shot up slowly.

0:36:520:36:53

45 I'm bid. 45 I've got, 47 now, do I see?

0:36:530:36:57

Do I see two more anywhere? Just you and me at the moment.

0:36:570:37:00

47 bid I've got. 48 now if you like. At 48, 48 I'm bid.

0:37:000:37:05

Fill it up to 50, and two, 52 I'm bid, 54 if you like.

0:37:050:37:10

54 I have, 56 now if you like.

0:37:100:37:13

56 may I say?

0:37:130:37:15

58, are you coming back in again?

0:37:150:37:17

58 may I say?

0:37:170:37:19

At 58 by the door, I've got 56 in the aisle, 58 I'm looking for, 58 I've got.

0:37:190:37:24

Fill it up to 60, may I say?

0:37:240:37:26

At £60,000, £60,000.

0:37:260:37:29

At £60,000.

0:37:290:37:31

If we're all done at 58, then I will sell for the first time, £58,000 on the left-hand side

0:37:310:37:37

for the second time, third and final time at £58,000.

0:37:370:37:41

All done, happy, all done, yours at 58. Well done, sir.

0:37:410:37:46

# It takes two, baby It takes two, baby... #

0:37:460:37:51

Successful at the auction with their bid of 58,000 were Nina, a mechanical design engineer,

0:37:510:37:58

and Alistair, an electrical engineer, who have teamed up to start a business in property investment.

0:37:580:38:04

Alistair, Nina, lovely to meet you both.

0:38:080:38:10

-Congratulations.

-Thank you, Martin.

-Thank you.

-So why did you want to buy this place?

0:38:100:38:13

We both have money left over from pension funds and banks

0:38:130:38:17

not making anything at the moment so we thought we'd try property investing.

0:38:170:38:22

Right. Is this the first venture into that world?

0:38:220:38:25

We have bought a plot of land

0:38:250:38:27

which we are going through a planning permission to build a couple of houses.

0:38:270:38:30

-Oh, wow.

-But this is to keep us amused over the winter.

0:38:300:38:33

Fair enough. So what about the relationship between you two?

0:38:330:38:37

We're business partners.

0:38:370:38:40

We were working together in a consultancy in London and discussed the lack of interest in the banks

0:38:400:38:46

-and thought we could do something together to keep ourselves amused.

-Oh, great.

0:38:460:38:52

So how did that turn from that kind of conceptual idea to actually buying somewhere down here in Folkestone.

0:38:520:38:57

Well, we couldn't afford something in London, so this was good value.

0:38:570:39:02

I mean, we're looking for value obviously.

0:39:020:39:05

What was it about this flat that appealed?

0:39:050:39:08

When we went to auction, we had a list of about ten properties we were interested in.

0:39:080:39:12

-The earlier ones we had bid on and lost and this one we won.

-We won.

0:39:120:39:18

So you'd looked at ten properties you could potentially buy.

0:39:180:39:21

-We didn't look at any properties.

-You didn't look at any of them?

0:39:210:39:24

-We did research them all and looked at the selling prices of properties nearby.

-Google Earth.

0:39:240:39:28

The essential, and also looked carefully at the quality of the property that was being sold.

0:39:280:39:34

Buying blind can be a very risky strategy

0:39:380:39:41

and not one I would recommend, but this plucky pair seem unfazed.

0:39:410:39:46

What experience do both of you have in terms of property renovation and restoration?

0:39:460:39:51

Very little domestically, apart from the few houses that I've owned,

0:39:510:39:54

but being in the construction industry, commercially we've built buildings,

0:39:540:39:59

we've knocked down buildings, we've renovated them.

0:39:590:40:02

Not necessarily with our own fair hands, but technically we have.

0:40:020:40:07

When I was younger, as an electrician,

0:40:070:40:09

I did work for a small building firm that did a lot of conversions

0:40:090:40:12

of flats in south London so I have got some experience of that sort of work,

0:40:120:40:19

but not on my own account.

0:40:190:40:21

Tell me step by step what you're going to do to sort the place out.

0:40:210:40:24

We're on a tight budget so it's hard to know if we can afford to do much structural work

0:40:240:40:30

but we were going to replace the existing boiler system with a combi boiler

0:40:300:40:34

which will free up some space in the cupboard

0:40:340:40:37

which will open up the kitchen, and with new kitchen units

0:40:370:40:41

we hope that it will look a lot better in there.

0:40:410:40:44

So what kind of budget have you got for the work?

0:40:440:40:46

-We're going to try and get it under about £7,000.

-£5,000.

0:40:460:40:51

You say five, you say seven.

0:40:530:40:55

And that's going to be mostly spent on what?

0:40:550:40:58

Well, I think the ceiling was going to take a bit of sorting out one way or the other.

0:40:580:41:03

But the kitchen and bathroom will cost the money.

0:41:030:41:05

Time scales for the work?

0:41:050:41:07

That's changed because Alistair has decided to go back to work, but...

0:41:070:41:10

She says through gritted teeth.

0:41:100:41:13

We were going to turn it around in two months, but I think it's probably three, so four maybe.

0:41:130:41:18

-No, I still think it should be turned around in six to eight weeks.

-OK. There we are.

0:41:180:41:22

So six to eight weeks, seven grand. And three months...five grand.

0:41:220:41:26

-Five grand.

-How does that work?

0:41:260:41:28

Not sure. But it will be interesting to see anyway. Now, there is some

0:41:280:41:32

enthusiastic banter between you two.

0:41:320:41:34

How is it going to work as a business relationship, do you think?

0:41:340:41:38

-I think at the end of the day...

-You're the boss.

-I am, yeah.

0:41:380:41:41

-You do as you are told, don't you?

-Yes.

0:41:410:41:43

-Is it OK? Because you're not together as a couple so are you OK?

-Not. No.

0:41:430:41:47

"Definitely not!" she says.

0:41:470:41:49

-No, it's...

-The guy's got feelings, come on.

0:41:490:41:52

-No.

-I've got standards as well.

0:41:520:41:55

But so there's no, there's no chance of a bit of friction between you two when it comes to making decisions.

0:41:550:42:02

-Oh, I think there will be.

-I think there will be but it's a professional friction

0:42:020:42:05

and at the end of the day we both want to make money.

0:42:050:42:07

Congratulations. Good luck with it.

0:42:070:42:09

-Thank you very much.

-Looking forward to seeing how you get on.

-Thank you.

-See you soon.

0:42:090:42:13

Well, I don't know about you, but something tells me there will be

0:42:130:42:17

fireworks on this renovation before the day is out. Will they make any money?

0:42:170:42:22

Will they still be friends at the end of it all?

0:42:220:42:24

You can find out later in the show.

0:42:240:42:27

There's been plenty of time for our buyers to have started work on their properties.

0:42:300:42:35

But have they actually done anything or have they been beset by problems?

0:42:350:42:40

Time is money, and have they made any or just lost out?

0:42:400:42:43

Let's go back and find out.

0:42:430:42:45

It was in Balham, south-west London, that we first saw

0:42:460:42:49

a rather splendid three-bedroom, bay-fronted Victorian terraced house.

0:42:490:42:55

It may be a real estate-agent's cliche, but this property really did have loads of potential.

0:42:550:43:00

You could build up into the loft, extend out the back or open up into the cellar,

0:43:000:43:05

and with many features still intact, albeit some of them rather interestingly painted

0:43:050:43:10

this was one of those auction lots to get excited about.

0:43:100:43:14

It was bought by young couple Scott and Ness for £695,000.

0:43:150:43:21

They'd been living in a small house in Tooting and were keen to find somewhere bigger.

0:43:210:43:27

So is this the home of your dreams?

0:43:270:43:29

For the next short while.

0:43:290:43:30

Yes. I think we looked at so many houses and this one has ticked most of the boxes, I'd say.

0:43:300:43:37

-I can see you rubbing your tummy there.

-I am.

-So baby on the way, how long have you got to go?

0:43:370:43:42

Well, I'm just about five and a half months now, so yeah.

0:43:420:43:47

So the clock was ticking, and with grand plans for loft conversions

0:43:470:43:51

and kitchen extensions, they had their work cut out.

0:43:510:43:55

And now nearly one year to the day, we're back.

0:43:550:44:00

From outside, the house is looking crisp and clean.

0:44:000:44:03

With the bush removed from the front garden,

0:44:030:44:05

the delicate traditional ironwork on the wall is now visible.

0:44:050:44:09

But it was inside where Ness and Scott hoped

0:44:090:44:13

they could bring a modern touch to what is now a proper family home.

0:44:130:44:18

With the arrival of eight-month-old baby Monty,

0:44:240:44:28

they moved in just three weeks ago.

0:44:280:44:31

And what a home they've made for themselves here.

0:44:310:44:34

Two reception rooms were knocked through to make a wonderful lounge dining area...

0:44:400:44:46

..which then leads on to a stunning open-plan kitchen.

0:44:510:44:56

And though Scott's original plans for a glass box extension were refused,

0:45:020:45:08

what they ended up with isn't half bad.

0:45:080:45:11

Last time you were here, this space was completely different and much smaller.

0:45:110:45:16

I think the room probably finished maybe around here.

0:45:160:45:20

And what we also did was extend out

0:45:200:45:25

to the next wall and also put in this beautiful glass window here.

0:45:250:45:30

And the tiles, the idea was that once the bi-folding doors are open,

0:45:300:45:35

that this area then becomes actually

0:45:350:45:38

one room leading into the garden.

0:45:380:45:40

It feels great when those are open,

0:45:400:45:41

lots of air and being able to step straight out.

0:45:410:45:45

We really love this room, it's one of our favourite bits of the house.

0:45:450:45:49

And those great bi-folding doors lead

0:45:520:45:55

out onto that lovely sunny terrace and child-friendly garden space.

0:45:550:46:00

Upstairs, that high quality, chic modern finish continues

0:46:080:46:12

with a stylish white and black bathroom suite.

0:46:120:46:16

The old kitchen space has been returned to being a bedroom...

0:46:200:46:25

..while in the master bedroom, gone is the dated wallpaper

0:46:260:46:30

and dilapidated carpet, to be replaced by bespoke fitted wardrobes.

0:46:300:46:35

And the third bedroom is now baby Monty's nursery.

0:46:380:46:42

But they didn't stop there.

0:46:470:46:50

We also added a loft conversion.

0:46:500:46:53

The extra sort of piece we wanted in terms of making the loft conversion

0:47:020:47:06

feel slightly different was to have sort of a different staircase going up to the loft.

0:47:060:47:12

Sort of a slight mezzanine feel to it when you're standing at the top of the house

0:47:120:47:18

because the stairs don't actually join the wall,

0:47:180:47:21

there is actually a space which enables you to look down.

0:47:210:47:25

This loft space has turned out to be a fantastic bonus with en suite

0:47:250:47:30

shower room and balcony doors to look out over sunny Balham.

0:47:300:47:33

But getting to this stage hasn't been easy.

0:47:330:47:37

The original extension plans were rejected and their first builder went into liquidation.

0:47:370:47:41

Then there was a delay finding another builder, making this a year-long process.

0:47:410:47:48

But now they have finished and they've turned this

0:47:480:47:51

ordinary three-bed terraced house into a four-bed house that I think is rather special.

0:47:510:47:56

In terms of style, we wanted it to look like a Victorian house from the front,

0:47:560:48:00

but to look modern and contemporary once you came through the door and I think it succeeded.

0:48:000:48:05

What we decided was we wanted to always make this a big spacious family house with lots of light.

0:48:050:48:12

There is a wonderful calming feeling about this house now.

0:48:160:48:20

What a huge difference to that drab, tired property I saw a year ago.

0:48:200:48:25

But I suspect they may have gone over their £130,000 to £150,000 proposed budget.

0:48:250:48:33

Did we really say 130 to 150?

0:48:330:48:36

We smashed that by some margin as I think you probably would have guessed.

0:48:360:48:41

I think we spent, if you include everything, including the fitted furniture

0:48:410:48:46

and bits and pieces of the loose furniture, about £225,000.

0:48:460:48:49

£225,000 to make this house a home is a reasonable outlay

0:48:510:48:55

on a place Ness and Scott bought for £695,000.

0:48:550:49:00

With costs and fees they will have invested nearly £930,000.

0:49:000:49:06

So was this money well spent? What do two local estate agents reckon?

0:49:060:49:11

My first impressions of the property are really good quality has been done, very stylish fittings,

0:49:110:49:16

and the kitchen has been done beautifully,

0:49:160:49:19

especially with the bi-fold doors onto the garden, and a great size.

0:49:190:49:23

The loft conversion is done to a very high standard, in keeping with the rest of the house.

0:49:230:49:27

The overall standard of work is second to none.

0:49:270:49:30

It's certainly one of the very best I've seen.

0:49:300:49:33

With their total costs heading towards £930,000,

0:49:330:49:38

has finishing the house to a high standard paid off?

0:49:380:49:42

If we were to put it onto the open market, we'd expect it to achieve in the region of £980,000.

0:49:420:49:47

I would put this on the market for £975,000.

0:49:470:49:51

So not huge returns here,

0:49:510:49:54

maybe a pre-tax profit of around £45,000 to £50,000.

0:49:540:49:58

What do they make of the resale valuations?

0:49:580:50:01

I think it's more than we would have expected. Um, but...

0:50:010:50:05

And it's more than we've spent added to what we paid, which is pretty good, I suppose.

0:50:050:50:10

-Which is a bonus.

-Yeah, good news.

0:50:100:50:12

So financially it does stack up fine.

0:50:120:50:16

What are their reflections on their year-long project?

0:50:160:50:19

It's been painful, but worth it, I think.

0:50:190:50:22

Yeah, I'm sure we'll forget all the pain in the future.

0:50:220:50:25

Now, with the house just about completed,

0:50:250:50:27

they can concentrate on caring for and bringing up Monty in their stunning new home.

0:50:270:50:33

Now it's time for us to go back to Folkestone in Kent

0:50:420:50:46

where old friends and new property developers Alistair and Nina purchased a top-floor flat

0:50:460:50:53

in this grand building with a not so grand interior for £58,000.

0:50:530:50:57

But they had a plan for it. In fact, they each had different plans.

0:50:570:51:03

-So what kind of budget have you got?

-We're going to try to get it under about £7,000.

0:51:030:51:07

-£5,000.

-Time scales for the work?

0:51:070:51:11

We were going to turn it round in two months, but I think it's probably three, so four maybe.

0:51:110:51:16

No, I still think it should be turned around in 6-8 weeks.

0:51:160:51:19

-So six to eight weeks, seven grand. And three months...

-Five grand.

-..five grand.

0:51:190:51:24

-How does that work?

-Not sure. But it will be interesting to see anyway.

0:51:240:51:27

So with budget and time scales already areas of disagreement,

0:51:270:51:31

did their friendship survive the refurbishment?

0:51:310:51:34

It's been four months since we last saw them and their property.

0:51:340:51:39

As well as tidying up the place in terms of decor,

0:51:540:51:57

Nina and Alistair got rid of the horrible suspended ceiling

0:51:570:52:01

and it's looking much better as it's been replastered and painted.

0:52:010:52:05

The renovation is 90% complete and things are taking shape,

0:52:050:52:10

but it turns out that time and money weren't the only things they didn't agree on.

0:52:100:52:14

Well, the fireplace was a bone of contention between me and Nina.

0:52:140:52:18

Nina wanted it stripped out, but I wanted to keep it for two reasons.

0:52:180:52:22

One, I knew that it would make a lot of mess and quite a lot of work to strip it out

0:52:220:52:28

and the second is it is an original feature

0:52:280:52:31

and I believe in trying to keep original features within the flat.

0:52:310:52:35

It's proved to a certain extent Nina's right

0:52:350:52:38

in that the work involved in stripping it has been considerable

0:52:380:52:42

but the features we see, the art deco design

0:52:420:52:45

and the typical 1930s marbled tiles

0:52:450:52:51

I think will come through as worthwhile

0:52:510:52:53

once the process is finished and it's all tidied up.

0:52:530:52:59

I'm with Alistair on this one.

0:52:590:53:01

It's a real luxury to be able to retain period features if you can.

0:53:010:53:05

But something I hope they didn't retain was that nasty cramped kitchen.

0:53:050:53:10

Well, in here we used to have a cylinder in the corner and a wall which we've knocked down,

0:53:170:53:23

put in a combi boiler for the hot water and essentially made better use of the kitchen.

0:53:230:53:28

Obviously new kitchen tiles, gas cooker, new window, and that's about it.

0:53:280:53:33

Nina had planned on a £5,000 budget, but Alistair thought £7,000.

0:53:330:53:39

Were either of them right?

0:53:390:53:41

-I was closer.

-But then we changed the whole concept.

-We did, yes.

0:53:410:53:45

But it was a conscious decision. We decided to aim for a different market effectively,

0:53:450:53:50

so improved a lot of the finishes and by the time

0:53:500:53:53

we finish, there's a couple of hundred pounds left to spend

0:53:530:53:57

on finishes and carpets, but we'll come out just under £11,000.

0:53:570:54:02

What about their estimated time scale?

0:54:020:54:05

The time scales have slipped. Of course, they generally do on projects

0:54:050:54:09

-so it's taken the best part of three months really.

-Four months.

0:54:090:54:13

Three or four months, is it? Four months now.

0:54:130:54:15

Even now they've nearly finished, they can't agree on the time scale

0:54:150:54:18

but hopefully there was enough agreement along the way to keep their friendship intact.

0:54:180:54:23

-We're still talking, aren't we?

-Yeah.

0:54:230:54:26

-We have quite a satisfactory business relationship.

-Exactly, yes.

0:54:260:54:30

-We never had a big row really, did we?

-No, I don't think we did.

0:54:300:54:33

-No, and you never hit me.

-No. Well, not often.

-No.

0:54:330:54:36

The teeth marks don't show at all.

0:54:360:54:38

Well, they certainly got their teeth into this

0:54:380:54:42

with re-plumbing, re-wiring, new central heating and double glazing, as well as the cosmetic work.

0:54:420:54:48

We asked two local estate agents to give us their opinion on it.

0:54:490:54:53

Coming into the property, it looks like

0:54:560:54:58

they've spent some time and effort trying to make it more presentable

0:54:580:55:01

and I think it's definitely an improvement on what it was.

0:55:010:55:05

It's changed a lot since I first saw it.

0:55:050:55:08

They've obviously enhanced a lot, the kitchen and bathroom are very nice.

0:55:080:55:11

Overall a fairly good impression, fairly good for tenant appeal too.

0:55:110:55:16

Speaking of tenants, what could this place be rented out for?

0:55:160:55:21

To rent this apartment out would be in the region between £500 and £550 per calendar month.

0:55:210:55:26

I would advise the client to advertise it for £550 per calendar month.

0:55:260:55:32

We're not looking to rent, although if we can't sell it in two months

0:55:320:55:36

then maybe we'll look at renting in the short term.

0:55:360:55:40

Having paid £58,000 and spent £11,000 on the renovations, Nina and Alistair's total spend

0:55:400:55:47

was £69,000, making the rental return very attractive

0:55:470:55:51

at between 8% and 9½%.

0:55:510:55:54

But as they said, they're all set to sell,

0:55:540:55:56

so what would the estate agents estimate for that?

0:55:560:56:00

The value of this apartment would be around £90,000.

0:56:000:56:03

It would be potentially higher if the building were

0:56:030:56:06

of a greater standard in terms of its common areas.

0:56:060:56:08

I would recommend you advertise it for a maximum of £95,000

0:56:080:56:13

and hopefully achieve something just over £85,000.

0:56:130:56:17

That still gives us, what, 25%, 30% return?

0:56:170:56:22

Well, yeah, 20% anyway.

0:56:220:56:24

Which is more than you get in the bank, so yes, we're happy.

0:56:240:56:27

Based on the estate agents' recommendations, they could see a potential profit

0:56:270:56:31

of between £16,000 and £21,000 minus the usual selling expenses.

0:56:310:56:36

But Alistair is reserving judgement.

0:56:360:56:39

It's one thing for the price to be given to us, it's another thing

0:56:390:56:42

for it to actually be sold at that price.

0:56:420:56:44

When it's sold at that price, come back again and ask if I'm happy.

0:56:440:56:47

Well, that's it for now. We'll have more auction stories to warn or inspire you next time.

0:56:510:56:57

-So make sure you join us then.

-Goodbye.

-Goodbye.

0:56:570:57:01

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