0:00:02 > 0:00:05- Hello and welcome.- Whether you are a developer or first-time buyer,
0:00:05 > 0:00:07what you will want is value for money.
0:00:07 > 0:00:10In a fluctuating property market, where do you go
0:00:10 > 0:00:14to find out what's happening? Try the auctions.
0:00:39 > 0:00:42Sometimes you know you've bought a bargain,
0:00:42 > 0:00:44and sometimes, well, you're not quite sure.
0:00:44 > 0:00:47The best way to find out is to see for yourself.
0:00:47 > 0:00:51So, did the buyers on today's show get themselves a bargain or not?
0:00:51 > 0:00:53Let's find out.
0:00:53 > 0:00:57In Salford, a property which challenges me to dig deep.
0:00:57 > 0:01:00Superficially, clearly it's dreadful.
0:01:00 > 0:01:02But I'm trying to get into the roots of it.
0:01:02 > 0:01:04There's a plot in Chatham, Kent,
0:01:04 > 0:01:08which may never let you bear the fruits of your labour.
0:01:08 > 0:01:12So, it's all looking rather peachy...but no.
0:01:13 > 0:01:16And in Brampton, near Carlisle, one big property
0:01:16 > 0:01:19which could be cut in half to double your dosh.
0:01:19 > 0:01:23Either way, you know what? There's money to be made here.
0:01:24 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:33- when they went under the hammer. - All finished. Sold.
0:01:37 > 0:01:39This is Salford in Greater Manchester,
0:01:39 > 0:01:43currently undergoing a period of regeneration and investment,
0:01:43 > 0:01:46which includes upgrading of local housing stock.
0:01:46 > 0:01:49Well, just two miles from the university,
0:01:49 > 0:01:53two miles from the train station, reasonable area.
0:01:53 > 0:01:57So why was there a property up for auction -
0:01:57 > 0:02:00three-bed, semi-detached house - with a guide price
0:02:00 > 0:02:02of just £25,000?
0:02:02 > 0:02:06Well, as I said, not a bad area. Does it have holes in the ceiling,
0:02:06 > 0:02:09in a dreadful state? Well, kind of.
0:02:09 > 0:02:12What do you reckon? How about that?
0:02:12 > 0:02:14It's a burnt-out wreck.
0:02:17 > 0:02:21It certainly doesn't look very appealing from the outside.
0:02:21 > 0:02:24But at least there is off-street parking...
0:02:25 > 0:02:30..and the garden, although not massive, wraps around three sides.
0:02:33 > 0:02:36Yes, well, it is as bad as you might expect.
0:02:36 > 0:02:41The first thing you got to consider with fire-damaged properties is,
0:02:41 > 0:02:43how bad is the damage?
0:02:43 > 0:02:46And that will make the decision then
0:02:46 > 0:02:48as to whether you try and refurbish this
0:02:48 > 0:02:50or knock it down and start again.
0:02:50 > 0:02:53That's ideally not what you want to do,
0:02:53 > 0:02:55because it's going to cost a lot more.
0:02:55 > 0:02:59However, if the fire has got into the fabric of the building,
0:02:59 > 0:03:02and I'm talking about the timbers, the joists and the walls,
0:03:02 > 0:03:05it could have cracked the underlying structure of the property.
0:03:05 > 0:03:08If it's that bad, the only option is to knock it down.
0:03:08 > 0:03:11You need to get a builder or a surveyor in here,
0:03:11 > 0:03:13somebody who can tell you how bad it really is.
0:03:13 > 0:03:16Superficially, clearly it's dreadful.
0:03:16 > 0:03:19But I'm trying to get into the roots of it.
0:03:19 > 0:03:21I need a bit more of a look around.
0:03:25 > 0:03:30As far as the internal layout goes, it's a decent-sized semi,
0:03:30 > 0:03:33with a kitchen, dining room and well proportioned living room
0:03:33 > 0:03:37on the ground floor. If the place is structurally sound,
0:03:37 > 0:03:40don't underestimate the effort it will take to sort it out.
0:03:40 > 0:03:43Things like pipe work. The joints will have probably gone,
0:03:43 > 0:03:45and you want to replace that for sure.
0:03:45 > 0:03:48The walls! You can't just paint over this, obviously.
0:03:48 > 0:03:52You'll have to strip it back to the original plaster
0:03:52 > 0:03:55or at least put specialist paint coverings on there,
0:03:55 > 0:03:57so that the blackening doesn't come through.
0:03:57 > 0:04:00The joists, obviously, as I mentioned before,
0:04:00 > 0:04:03they'll need to be checked out, and stuff like the electrics.
0:04:03 > 0:04:06I mean, that's probably all just melted
0:04:06 > 0:04:08as a result of the heat, so you've got to factor that
0:04:08 > 0:04:12into your costings. That said, if you were to restore this place,
0:04:12 > 0:04:14you'd probably want to do the electrics anyway.
0:04:14 > 0:04:17But it's certainly being forced on you in this instance.
0:04:17 > 0:04:21It's not an easy fix to repair a fire-damaged property.
0:04:21 > 0:04:23Even if you don't have to rebuild it,
0:04:23 > 0:04:26it can almost feel like you are, and from scratch.
0:04:26 > 0:04:28And what about those stairs?
0:04:31 > 0:04:34I don't think so!
0:04:35 > 0:04:38'Our fearless cameraman did head upstairs though,
0:04:38 > 0:04:41'adhering to health-and-safety rules, of course,
0:04:41 > 0:04:44'to give us a look at the bedrooms and the damaged bathroom.'
0:04:45 > 0:04:49So, a major project with a minor guide price of 25,000.
0:04:49 > 0:04:52We invited a local expert from the auction house
0:04:52 > 0:04:56that sold it to cast his eye over this charred offering.
0:04:56 > 0:04:59The damage that's been done to the property
0:04:59 > 0:05:02is quite substantial, but there doesn't appear
0:05:02 > 0:05:06to be anything structurally wrong. It won't be a cheap job,
0:05:06 > 0:05:09but you will end up with a house that's fully refurbished,
0:05:09 > 0:05:11so it will end up being a good buy.
0:05:11 > 0:05:13What's the rental market like in this area?
0:05:13 > 0:05:17'A three-bedroom semi in this area would rent really well.'
0:05:17 > 0:05:21We'd expect to rent this out for £550 per calendar month.
0:05:21 > 0:05:24Perhaps you'd be better putting the property up for sale.
0:05:24 > 0:05:26When the property's refurbished,
0:05:26 > 0:05:29I think it'll be worth between £75,000 and £85,000.
0:05:29 > 0:05:32If they decided to do the loft conversion,
0:05:32 > 0:05:34and perhaps put a conservatory on the back,
0:05:34 > 0:05:38that could take the value up to between £90,000 and £100,000.
0:05:38 > 0:05:42Well, fire-damaged properties do offer great potential,
0:05:42 > 0:05:45but they're not for the inexperienced.
0:05:45 > 0:05:47You do need to know what you're doing.
0:05:47 > 0:05:50But if you could get this for anything like the guide price,
0:05:50 > 0:05:56you could be onto a winner. Let's see who fancied the massive challenge when it went to auction.
0:05:56 > 0:05:58OK. Lot 60.
0:05:58 > 0:06:01Fire-damaged three-bed semi.
0:06:01 > 0:06:03I've got proxy bids on this, telephone bids on it.
0:06:03 > 0:06:06What's it got to be worth today? I've got a bid at 20,000.
0:06:06 > 0:06:0920 I have. 25. The lady's bid at 25.
0:06:09 > 0:06:12At 25,000, then. 27. I have 27.
0:06:12 > 0:06:15Do I see 30? 30,000.
0:06:15 > 0:06:1830,000 I had, then. Do I see 31 on the phone, maybe?
0:06:18 > 0:06:2131. 32.
0:06:21 > 0:06:2233,000.
0:06:22 > 0:06:24At 33,000. 34.
0:06:24 > 0:06:2735. 36. 36,000, then.
0:06:27 > 0:06:2937. 37.
0:06:29 > 0:06:3238. 39. 40.
0:06:32 > 0:06:3541. 41,000, then.
0:06:35 > 0:06:3842. 42. 43.
0:06:38 > 0:06:4044. 45.
0:06:40 > 0:06:4346.
0:06:43 > 0:06:4546,000. 47.
0:06:45 > 0:06:47At 47,000. 48 anywhere?
0:06:47 > 0:06:50At 47,000, then, for the first time.
0:06:50 > 0:06:5347,000 for the second and final time.
0:06:53 > 0:06:57Are we all done at 47,000? Lady's bid. There we go.
0:06:57 > 0:07:00The winning bid of 47,000 was made by Angela,
0:07:00 > 0:07:04who gives study support to students with dyslexia.
0:07:04 > 0:07:08She and her builder Pete have refurbished together before,
0:07:08 > 0:07:11and she wants to rescue this one for herself and her family.
0:07:11 > 0:07:15# Won't you come on down
0:07:15 > 0:07:19# To my rescue? #
0:07:20 > 0:07:23- Angela, lovely to meet you. - And you.- Congratulations.
0:07:23 > 0:07:25- Thank you.- I THINK congratulations. THEY LAUGH
0:07:25 > 0:07:28- Hmm.- So, a bit of work to do, then?
0:07:28 > 0:07:30Yes, you could say that, couldn't you?
0:07:30 > 0:07:33Hmm. Er, why did you want to buy it?
0:07:33 > 0:07:37- I've been looking at it for a while. - You've been looking at it?
0:07:37 > 0:07:39At the house, because it's been for sale,
0:07:39 > 0:07:43but it didn't get into the auction for quite a few months,
0:07:43 > 0:07:47and I thought it would suit my purposes,
0:07:47 > 0:07:51as a house to live in with my sister and my mum,
0:07:51 > 0:07:54who's quite elderly, and she needs ground-floor accommodation,
0:07:54 > 0:07:57and I thought we could do something with this.
0:07:57 > 0:08:01Between what it's like now and what you want it to be,
0:08:01 > 0:08:05there's quite a hurdle. Why not buy somewhere that's sorted out already?
0:08:05 > 0:08:09Um, well, I do like a challenge, I suppose.
0:08:09 > 0:08:11HE LAUGHS
0:08:11 > 0:08:14And I think, for the money I've paid for it,
0:08:14 > 0:08:16and the budget that I've got to spend on it,
0:08:16 > 0:08:21I should get something really nice for under £100,000,
0:08:21 > 0:08:23whereas if I'd bought something else,
0:08:23 > 0:08:26I would've still had to do something to it, I think.
0:08:26 > 0:08:30And this is sort of a blank canvas. I can start from scratch,
0:08:30 > 0:08:33- and get it exactly how I want it. - How you want it.- Yeah.
0:08:33 > 0:08:36- So, this doesn't faze you too much? - No, not really.
0:08:36 > 0:08:38No. I find it quite exciting.
0:08:38 > 0:08:41I like to take something that looks quite unpromising
0:08:41 > 0:08:44and turn it into something quite nice.
0:08:44 > 0:08:46# Baby, save me
0:08:46 > 0:08:49# Save me...
0:08:49 > 0:08:51I love Angela's understatement,
0:08:51 > 0:08:53calling this burnt-out wreck "unpromising".
0:08:53 > 0:08:57But she can see its potential to become a future home
0:08:57 > 0:08:59that will suit her and her family.
0:08:59 > 0:09:03But it's not quite big enough for her, her mum and her sister yet.
0:09:03 > 0:09:06Well, we're hoping to do a loft conversion,
0:09:06 > 0:09:10and downstairs we'll be changing the configuration
0:09:10 > 0:09:12and making a bedroom for my mum,
0:09:12 > 0:09:16and we'll put a conservatory on at the back, as well.
0:09:16 > 0:09:19What kind of budget have you set aside for the work?
0:09:19 > 0:09:22- About £50,000. - Don't tell your builder that number.
0:09:22 > 0:09:25- SHE LAUGHS - Tell him you got 30 to spend.
0:09:25 > 0:09:27THEY LAUGH
0:09:27 > 0:09:29What kind of timescale are you hoping for?
0:09:29 > 0:09:32- Four to five months.- Right.
0:09:32 > 0:09:36So, how involved in the project are you going to be personally?
0:09:36 > 0:09:40When it comes to the finishing off, I will do some of that myself,
0:09:40 > 0:09:43such as tiling, which I quite like doing,
0:09:43 > 0:09:45and decorating, obviously.
0:09:45 > 0:09:49- So I'll do the nice bits, really. - Right.
0:09:49 > 0:09:52And let Pete and his mates do all the dirty...
0:09:52 > 0:09:54HE LAUGHS ..horrible jobs.
0:09:54 > 0:09:57- Well, the first bit is going to be a bit unpleasant.- Yes.
0:09:57 > 0:09:59What does your mum think about all this?
0:09:59 > 0:10:03- Um, she's very keen on it, you know. - Has she seen it yet?
0:10:03 > 0:10:05No. No, she hasn't seen it yet.
0:10:05 > 0:10:08I'm not going to bring her over just yet.
0:10:08 > 0:10:11- "Mum, this is your new house." - Exactly.
0:10:11 > 0:10:15Yeah. So I'll wait till it's looking a little more, you know...
0:10:15 > 0:10:18presentable, before I actually bring her over to have a look.
0:10:18 > 0:10:22# Save me
0:10:22 > 0:10:25# Somebody save me...
0:10:25 > 0:10:28Angela has undertaken renovation projects before.
0:10:28 > 0:10:32She worked with builder Pete on her most recent project,
0:10:32 > 0:10:34her current home, and luckily he's on hand
0:10:34 > 0:10:36to help with this one too.
0:10:36 > 0:10:38So, Pete, it's your job...
0:10:38 > 0:10:41- HE LAUGHS - ..to turn this place around.
0:10:41 > 0:10:43- Sure is, yes. - Oh, wow. What do you think of it?
0:10:43 > 0:10:47I think it's great. Got a lot of potential, indeed.
0:10:47 > 0:10:49It's a good-size property.
0:10:49 > 0:10:53OK, they've got the damage, but structurally it's sound.
0:10:53 > 0:10:56- So, did Angela make the right decision to buy it?- Definitely.
0:10:56 > 0:11:00Definitely. This is one that even I would have bought.
0:11:00 > 0:11:03What do you think it's going to cost to get it sorted?
0:11:03 > 0:11:07- HE HISSES THOUGHTFULLY - You did what all builders do!
0:11:07 > 0:11:09- You suck through your teeth! - HE HISSES
0:11:09 > 0:11:12- THEY LAUGH - Well, we have a guideline.
0:11:12 > 0:11:14I've worked with Angela before,
0:11:14 > 0:11:17so we have a guideline of what that cost,
0:11:17 > 0:11:19so, you know, we're looking...
0:11:19 > 0:11:22anything between 35, 40.
0:11:22 > 0:11:25- Great. We can hold you to that, can we?- No!
0:11:25 > 0:11:27THEY LAUGH
0:11:27 > 0:11:28# Save me
0:11:28 > 0:11:30# Somebody save me #
0:11:30 > 0:11:33Well, I'm not going to let on to Pete
0:11:33 > 0:11:36that Angela quoted a higher figure than that for her budget.
0:11:36 > 0:11:40But for Angela, this project isn't really about making a big profit.
0:11:40 > 0:11:43It's more about building a new home and a new life
0:11:43 > 0:11:45for herself after a very difficult year.
0:11:45 > 0:11:47I have moved over to this area,
0:11:47 > 0:11:50having lived in Lincolnshire previously,
0:11:50 > 0:11:52but sadly I lost my husband last year,
0:11:52 > 0:11:56- so, um... Oh, dear. - Oh, I'm sorry to hear that.
0:11:56 > 0:11:59- Um...- So you're making a new life in Manchester.
0:11:59 > 0:12:03Exactly, yeah, and this is where my family and friends are, really,
0:12:03 > 0:12:07- which is why I've moved back over here.- Well, congratulations.
0:12:07 > 0:12:09Good luck with it. A few challenges ahead,
0:12:09 > 0:12:11- but look forward to seeing how you get on.- Thank you.
0:12:11 > 0:12:15Well, it's a new start for Angela and her family,
0:12:15 > 0:12:18and we wish them all the best with that.
0:12:18 > 0:12:20And hopefully with Pete's help,
0:12:20 > 0:12:24they will be able to transform this wreck of a property
0:12:24 > 0:12:26into a beautiful place to live.
0:12:26 > 0:12:29You can find out how they get on later in the show.
0:12:34 > 0:12:37This is Chatham in Kent,
0:12:37 > 0:12:40popular for its many transport links into London,
0:12:40 > 0:12:43lovely surroundings, and affordable properties
0:12:43 > 0:12:45of all shapes and sizes.
0:12:46 > 0:12:49So, three big ticks already for this part of the country.
0:12:53 > 0:12:57I'm here to see a site today that's being offered with detailed planning permission
0:12:57 > 0:13:01for development of four houses, so that is great news.
0:13:01 > 0:13:06And the guide for this plot? £200,000 to £220,000.
0:13:06 > 0:13:08MUSIC: "Kids" by MGMT
0:13:08 > 0:13:13And this large rectangular plot sits amidst a real mix of properties,
0:13:13 > 0:13:16with excellent access to local amenities.
0:13:16 > 0:13:19It also seems popular with the local wildlife.
0:13:23 > 0:13:26Buying a plot which already has planning permission
0:13:26 > 0:13:29is a great bonus, and will save you having to spend valuable months
0:13:29 > 0:13:33drawing up plans and obtaining permissions.
0:13:33 > 0:13:35The four semi-detached properties for here
0:13:35 > 0:13:38have an open-plan kitchen, living and dining room
0:13:38 > 0:13:41on the ground floor, three bedrooms and a bathroom
0:13:41 > 0:13:44on the first floor, and a master bedroom on the top floor,
0:13:44 > 0:13:47but no bathroom.
0:13:48 > 0:13:52I've got the plans here. I've got a bit of a reservation.
0:13:52 > 0:13:54It feels a little bit top-heavy for me.
0:13:54 > 0:13:57A good number of bathrooms to bedrooms and reception rooms
0:13:57 > 0:14:01is always critical. I just feel the layout might not be ideal.
0:14:01 > 0:14:04It can be really tempting to view extra bedrooms
0:14:04 > 0:14:07as a quick route to a big profit.
0:14:07 > 0:14:11But if that means an undersized kitchen, lack of living space,
0:14:11 > 0:14:15and inadequate bathrooms, you won't see the return you're hoping for.
0:14:16 > 0:14:20I think you'd have to think about tweaking these plans slightly,
0:14:20 > 0:14:22to give the master bedroom an en suite.
0:14:22 > 0:14:25The plot here has a story behind it.
0:14:27 > 0:14:30So here's a little bit of background history.
0:14:30 > 0:14:34You see these three houses here? Well, they've all got together
0:14:34 > 0:14:37and decided to sell off part of their gardens,
0:14:37 > 0:14:40creating a rather lucrative building plot.
0:14:40 > 0:14:42It makes you think, doesn't it?
0:14:42 > 0:14:44If you're on good terms with your neighbours,
0:14:44 > 0:14:47and you've got good access,
0:14:47 > 0:14:50you too could be paying off a large chunk of your mortgage.
0:14:50 > 0:14:54# Somewhere
0:14:54 > 0:14:57# Over the rainbow #
0:14:57 > 0:15:01Forget chasing rainbows! You could find a pot of gold
0:15:01 > 0:15:05at the end of your garden. But if considering doing something similar,
0:15:05 > 0:15:07you must check with the local council
0:15:07 > 0:15:09about the legalities of doing so.
0:15:09 > 0:15:11And that's not my only word of warning.
0:15:11 > 0:15:15Another sound bit of advice - try and make all the design decisions
0:15:15 > 0:15:18before the contractors start on site.
0:15:18 > 0:15:21I know it sounds really obvious, but you'd be surprised
0:15:21 > 0:15:24how many people overlook this when it comes to self-builds.
0:15:24 > 0:15:26Sorting out the fixtures and fittings early
0:15:26 > 0:15:29can really save you money in the long term.
0:15:29 > 0:15:33Worst-case scenario, you have a builder on site without materials.
0:15:33 > 0:15:35That could be a nightmare. And whilst you're at it,
0:15:35 > 0:15:38you must make sure you're on top of your budget,
0:15:38 > 0:15:42and don't forget to factor in the costs associated with borrowing,
0:15:42 > 0:15:44buying and selling.
0:15:44 > 0:15:47There is something lurking beneath the surface of this plot,
0:15:47 > 0:15:50which could make it less appealing.
0:15:53 > 0:15:57So, it's all looking rather peachy...but no.
0:15:57 > 0:16:00There is a drain underneath this plot of land,
0:16:00 > 0:16:04and that could prove to be a huge drain on your budget.
0:16:04 > 0:16:06So you've got to contact the water board
0:16:06 > 0:16:10and work out the costs to relocate this before going to auction.
0:16:14 > 0:16:16We invited a local estate agent to the plot
0:16:16 > 0:16:19to give us her opinion on the proposed plans.
0:16:19 > 0:16:23The plot looks to be a reasonable-size plot,
0:16:23 > 0:16:26although once the properties are erected,
0:16:26 > 0:16:29there isn't going to be a huge amount of garden with them.
0:16:29 > 0:16:32'The layout, for some people, is going to cause the problem.'
0:16:32 > 0:16:36A lot of people don't like the thought of two sets of stairs,
0:16:36 > 0:16:38If you've got very young children,
0:16:38 > 0:16:40it is quite hard going up and down them all the time.
0:16:40 > 0:16:44I would have thought we're looking for professional people
0:16:44 > 0:16:47or people with older children. It would suit them much better.
0:16:47 > 0:16:52The plot had a guide price of £200,000 to £220,000.
0:16:52 > 0:16:56What could the potential profits be?
0:16:56 > 0:16:58I think we'd be looking at renting them out
0:16:58 > 0:17:03at round about £900 to £950 per calendar month.
0:17:04 > 0:17:07I think if we were to sell the properties at the moment,
0:17:07 > 0:17:10we'd be looking about £200,000 per property.
0:17:10 > 0:17:15It's a relatively level site. The setting is ideal,
0:17:15 > 0:17:18and Chatham has got strong transport links.
0:17:18 > 0:17:21Now, the only problem is that pesky drain.
0:17:21 > 0:17:24It didn't put somebody off, though. Let's find out who that was
0:17:24 > 0:17:26as we go to auction.
0:17:29 > 0:17:33Where do you want to start me on this one? 200,000?
0:17:33 > 0:17:35I'm underway at 200.
0:17:35 > 0:17:37205,000. Where are all the developers?
0:17:37 > 0:17:42Pleading with their bank manager, most of them, at the moment. Right at the back, 205.
0:17:42 > 0:17:46I'm obliged. And 210 sitting. 215 at the back.
0:17:46 > 0:17:49215. And 20.
0:17:49 > 0:17:51And 25. And 30.
0:17:51 > 0:17:54235. 240. It's with you, sitting.
0:17:54 > 0:17:56245. And 50. 250.
0:17:56 > 0:17:58And five again. 260 I've got, sitting down.
0:17:58 > 0:18:01And 65. Again, it's against you. 265.
0:18:01 > 0:18:05Drive down that road, see somebody else's scaffolding going up...
0:18:05 > 0:18:07Think, "That could've been me." 265.
0:18:07 > 0:18:11And 70. 270. And five. 275.
0:18:11 > 0:18:13Ooh... What's that - two?
0:18:13 > 0:18:16272, I've got.
0:18:16 > 0:18:18275, I've got.
0:18:18 > 0:18:21And 77. 277. It's worth a try.
0:18:21 > 0:18:25277? Otherwise, for the first time, at 275...
0:18:25 > 0:18:28He's a determined bidder. Second time at 275.
0:18:28 > 0:18:31Third and final time. I'm sure you're all done.
0:18:32 > 0:18:37It was Michael who made the successful bid of 275,000.
0:18:37 > 0:18:40He, his business partner John and son Matthew
0:18:40 > 0:18:43run a property-development business, so they're very familiar
0:18:43 > 0:18:45with purchasing land to build on.
0:18:45 > 0:18:49SONG: "Daddy Cool" by Boney M.
0:18:52 > 0:18:56And they're no strangers to Homes Under The Hammer, either.
0:18:56 > 0:18:58- What are you going to do with it? - Knock it down.
0:18:58 > 0:19:00- Are you, now?- We're going to try to.
0:19:00 > 0:19:04'They may have knocked down there, but I wanted to find out
0:19:04 > 0:19:07'what they plan to build up here.'
0:19:07 > 0:19:09Well, you've certainly been busy, haven't you?
0:19:09 > 0:19:14- Yes.- The last time I saw you two was in Sheerness back in 2007.
0:19:14 > 0:19:17- Yes, it was.- Gosh! How time flies!
0:19:17 > 0:19:20- So, congratulations. - We're still here!
0:19:20 > 0:19:24You've bought this plot of land. Have you both been extremely busy
0:19:24 > 0:19:26- since we last meet?- Yes,
0:19:26 > 0:19:29but we've achieved very little.
0:19:29 > 0:19:31We've had three very bad years.
0:19:31 > 0:19:36We didn't buy... This is the first site we've bought since Sheerness.
0:19:36 > 0:19:40We've done very little, but been busy chasing our tails.
0:19:40 > 0:19:43So, why have you moved on to buy this site and develop it?
0:19:43 > 0:19:47Well, basically, Dad did the bidding at the auction.
0:19:47 > 0:19:49- I wasn't there, unfortunately. - He'd have stopped me.
0:19:49 > 0:19:53No, I wouldn't have done that. He does a great job at auction.
0:19:53 > 0:19:57And it's a lovely site. Comes with full planning permission,
0:19:57 > 0:20:01which was very much what we like. We can get straight on this site
0:20:01 > 0:20:04and get straight on with it, and that's the really attractive part.
0:20:04 > 0:20:07And the architect had done a good job.
0:20:07 > 0:20:10It's a sensible house that has got four bedrooms,
0:20:10 > 0:20:13it's got a sitting room and a dining kitchen
0:20:13 > 0:20:17- of some size.- So it really appealed to you to buy this site
0:20:17 > 0:20:20with the planning permission. So you're ready to crack on.
0:20:20 > 0:20:22Hit the nail on the head, yeah.
0:20:22 > 0:20:26Will you be changing anything at all about what you've got on the plans?
0:20:26 > 0:20:30- Internally.- Yes, some internal work. - But very minor.
0:20:30 > 0:20:34There's no sanity to it, but in the original plans
0:20:34 > 0:20:37that had been passed, they've got, in brackets,
0:20:37 > 0:20:41the master bedroom doesn't have a shower room.
0:20:41 > 0:20:43And it's a piece of cake to do it,
0:20:43 > 0:20:47so you'll have a general bathroom on the first floor,
0:20:47 > 0:20:51and then it'll be a very nice and spacious master bedroom
0:20:51 > 0:20:56with a shower room or bathroom on the second floor.
0:20:56 > 0:20:59I really think you need to add that shower room,
0:20:59 > 0:21:02because you need access to washing facilities upstairs.
0:21:02 > 0:21:06- It's crazy.- Is there anything else that's problematic with the site?
0:21:06 > 0:21:11Yes. There is. There always is. There's always something.
0:21:11 > 0:21:15- It was never going to be that easy. - Never, ever is. It's the drains.
0:21:15 > 0:21:20The drains. We've got a foul that runs from this boundary
0:21:20 > 0:21:22straight out to the centre of the road,
0:21:22 > 0:21:25and that goes under one of the foundations,
0:21:25 > 0:21:29so we've got to reroute that, talk to the water board
0:21:29 > 0:21:32and the powers that be to get it moved and get permission,
0:21:32 > 0:21:34so that will be the difficult part.
0:21:34 > 0:21:38Could that be quite costly? Have you worked out any prices?
0:21:38 > 0:21:40- Yes, it's quite costly. - Go on, go on. Tell me.
0:21:40 > 0:21:44To get permission, it's around about approximately £2,000
0:21:44 > 0:21:47- just to say hello. - Just to talk to the people?
0:21:47 > 0:21:50- Just talk to the people. - OK.- The work, um...
0:21:50 > 0:21:52I haven't done a full appraisal,
0:21:52 > 0:21:57but it will be around the £8,000 mark to actually do the work itself.
0:21:57 > 0:22:01So, £10,000 to fix the issue with the drains.
0:22:01 > 0:22:05But Matthew wouldn't let something like that get in the way of a build.
0:22:05 > 0:22:07'As for Michael, well, with his background,
0:22:07 > 0:22:11'he's been there, done that, and probably got several T-shirts.'
0:22:11 > 0:22:14Michael, I know you're very experienced,
0:22:14 > 0:22:17- and you have been doing this for many years.- Sure.
0:22:17 > 0:22:19Some 40 years. Absolutely.
0:22:19 > 0:22:23And built... I don't know. Probably completed...
0:22:23 > 0:22:26must be 70 or 80 different developments,
0:22:26 > 0:22:29- way over 4,000 units altogether.- Ooh!
0:22:29 > 0:22:32Now, Matthew, you must have learnt a lot from your dad over the years.
0:22:32 > 0:22:35- I have.- Is this something that you aspire to do?
0:22:35 > 0:22:38It wasn't quite what I had in mind originally,
0:22:38 > 0:22:41but, like all these things, you sort of drift into them,
0:22:41 > 0:22:45and I've enjoyed doing it, so, um, yes. I like building houses.
0:22:45 > 0:22:47It's creative. You come back ten years' time,
0:22:47 > 0:22:49say, "Well, I built that," so it's nice.
0:22:49 > 0:22:52- So, what had you intended on doing? - Being a model.
0:22:52 > 0:22:54- He was going to be a model? - I wasn't.
0:22:54 > 0:22:58Yes, he did. Yes, he did. You speak to his mother.
0:22:58 > 0:23:01- She'll tell you. - He is really embarrassing you now.
0:23:01 > 0:23:04Not really. I'm used to it, because he does it all the time.
0:23:04 > 0:23:08# I'm going to be a supermodel #
0:23:08 > 0:23:12So, perhaps, some less-than-model behaviour from cheeky chap Michael,
0:23:12 > 0:23:16but with his vast experience of over 4,000 property developments,
0:23:16 > 0:23:19and a lot of charm, he gets away with it.
0:23:19 > 0:23:23It's lovely to see such a great relationship between this pair,
0:23:23 > 0:23:26and their optimism is infectious. I'm very glad to see
0:23:26 > 0:23:31that they're both still going strong despite the recent tougher market.
0:23:31 > 0:23:35So, with the property dip, it obviously didn't burn your fingers.
0:23:35 > 0:23:38- You're positive. You want to come back for more.- Always positive.
0:23:38 > 0:23:41- I enjoy the business.- Yes.
0:23:41 > 0:23:45And we've got enough experience to make it profitable.
0:23:45 > 0:23:48How long do you think this site is going to take you
0:23:48 > 0:23:51- to get these houses up and running? - Six months.
0:23:52 > 0:23:56- Certainly no more.- Have you guys really had a chance to do your sums
0:23:56 > 0:24:00- and work out the build costs? - I'm doing it at the moment.
0:24:00 > 0:24:02- SHE LAUGHS - What - right now?- Pretty much.
0:24:02 > 0:24:05- You're going over in your head the sums?- Part of it.
0:24:05 > 0:24:09- So, what do you think, Matthew? - I think... The actual amount?- Yes.
0:24:09 > 0:24:13- Um, I reckon it's going to be around the 400 mark.- Yeah.
0:24:13 > 0:24:17- So £400,000 to build all four semis? - That's correct, yeah.
0:24:17 > 0:24:19And that's everything - kitchens, bathrooms...
0:24:19 > 0:24:23- Even the drains. - Even the drain removal?- Yes.
0:24:23 > 0:24:26Guys, great to see you again. Good luck with this.
0:24:26 > 0:24:28- Thank you.- Thank you very much.
0:24:31 > 0:24:34Michael, with over 40 years of experience
0:24:34 > 0:24:37building a whopping 4,000 properties...
0:24:37 > 0:24:40I think I can say this project is in safe hands,
0:24:40 > 0:24:44and with Matthew by his side, using all of today's technology,
0:24:44 > 0:24:46I'm sure they will make a success of this.
0:24:46 > 0:24:49The only issue is that drain underground.
0:24:49 > 0:24:53It's an unknown quantity. Will it throw up some problems for them?
0:24:53 > 0:24:56Well, you can see how our father-and-son team do
0:24:56 > 0:24:58later on in the programme.
0:24:59 > 0:25:02Coming up - this property in Brampton near Carlisle,
0:25:02 > 0:25:04an area fit for a prince.
0:25:04 > 0:25:08Blimey! Even Bonnie Prince Charlie stayed here.
0:25:09 > 0:25:12In Kent, did this plot make Matthew and Michael lose the plot?
0:25:12 > 0:25:16I'm the guy that walks by and buys it,
0:25:16 > 0:25:19and then he sorts it all out because I've made a mistake.
0:25:20 > 0:25:24But first, did Angela keep her cool when the heat was on?
0:25:24 > 0:25:28I wasn't fazed by it. Um... I don't know why.
0:25:35 > 0:25:38'Time for us to go back to Salford in Greater Manchester,
0:25:38 > 0:25:41'where support worker Angela bought this,
0:25:41 > 0:25:45'a sadly burnt-out semi, for 47,000.'
0:25:45 > 0:25:49But she was a cool customer when it came to the fire damage.
0:25:49 > 0:25:51Between what it's like now and what you want it to be,
0:25:51 > 0:25:56there's quite a hurdle. Why not buy somewhere that's sorted out already?
0:25:56 > 0:25:59I do like a challenge, I suppose. HE LAUGHS
0:25:59 > 0:26:01And this most certainly was.
0:26:01 > 0:26:04Angela planned to turn this into a beautiful home
0:26:04 > 0:26:08for herself, her sister and their elderly mother to live in.
0:26:10 > 0:26:14We've come back seven months later to see if she rose to the challenge
0:26:14 > 0:26:16she'd set herself.
0:26:33 > 0:26:36Wow! The property looks fantastic,
0:26:36 > 0:26:39not even a hint of the blackened, burned-out shell that it was
0:26:39 > 0:26:41not so long ago.
0:26:41 > 0:26:45The house has not only had an incredible makeover,
0:26:45 > 0:26:48but the kitchen has been extended, two more bedrooms have been created,
0:26:48 > 0:26:51as well as an additional bathroom and an en suite.
0:26:51 > 0:26:54None of this would have been possible
0:26:54 > 0:26:56without Angela's close friend and builder, Pete.
0:26:56 > 0:27:00It was an interesting project. Everything was ripped out -
0:27:00 > 0:27:04the floors, roofs, the whole thing. But it worked to our advantage,
0:27:04 > 0:27:07because we could put a dormer in for a nice loft conversion.
0:27:07 > 0:27:11I'd done one for Angela before, so it worked very well.
0:27:11 > 0:27:13She trusted me and I trust her,
0:27:13 > 0:27:16and as far as doing the burnt-out,
0:27:16 > 0:27:19it was just the same old...
0:27:19 > 0:27:23To us, it's just taking out the old and putting in the new.
0:27:23 > 0:27:27Positive Pete seems as unfazed as Angela was,
0:27:27 > 0:27:30and that's even after most of the graft has been done.
0:27:30 > 0:27:34I've really enjoyed it. It's been a very, very successful project
0:27:34 > 0:27:38for everybody. Angela's going to end up with a very good house,
0:27:38 > 0:27:43and we've had plenty of work with it, so really enjoyed it.
0:27:43 > 0:27:47Luckily he's not the only one who's pleased with the results.
0:27:47 > 0:27:51It has actually surpassed my expectations.
0:27:51 > 0:27:54It's actually a lot nicer than I thought it was going to be.
0:27:54 > 0:27:58I wasn't fazed by it. Um, I don't know why.
0:27:58 > 0:28:00Maybe... SHE CHUCKLES
0:28:00 > 0:28:04I do... I just like doing this kind of thing.
0:28:04 > 0:28:06I just thoroughly enjoyed the whole thing.
0:28:06 > 0:28:10And particularly as this is going to be a home
0:28:10 > 0:28:12for herself, her sister Sue and their mother,
0:28:12 > 0:28:15who's going to really benefit from being here.
0:28:15 > 0:28:19She's looking forward to it. She's in a flat on her own
0:28:19 > 0:28:22at the moment, and it's on the second floor.
0:28:22 > 0:28:27She's not very good mobility, so she doesn't really get out much,
0:28:27 > 0:28:30so this is going to be a lot nicer for her, really.
0:28:31 > 0:28:34There's still around two weeks' work left to do,
0:28:34 > 0:28:38mainly in the garden, but with the transformation that's been done here
0:28:38 > 0:28:43so far, did Angela manage to stick to her time and money projections?
0:28:44 > 0:28:46Well, I did think about six months,
0:28:46 > 0:28:49and that's what it's actually turned out to be.
0:28:49 > 0:28:52In fact, from actually buying the property,
0:28:52 > 0:28:56two months went by before anything actually got started,
0:28:56 > 0:28:59so the actual work has been less than that.
0:28:59 > 0:29:02It's only been probably four to five months.
0:29:02 > 0:29:06I had a figure of £50,000 in mind,
0:29:06 > 0:29:09and I think it'll be 60, actually.
0:29:09 > 0:29:13I think I've probably gone 10,000 over budget,
0:29:13 > 0:29:17which, I think, for what we've got, isn't bad at all.
0:29:19 > 0:29:22We asked two local estate agents to come and have a look round
0:29:22 > 0:29:25Angela's new home and share their views.
0:29:25 > 0:29:29'Fantastic property. They've done a really good job.'
0:29:29 > 0:29:32I do like a lot of the touches, like the stripped flooring
0:29:32 > 0:29:34and the open-plan feel downstairs.
0:29:34 > 0:29:38The upstairs has dramatically changed the property
0:29:38 > 0:29:41by adding the second bathroom.
0:29:41 > 0:29:43I'm very impressed with the property.
0:29:43 > 0:29:45They've finished it to a very good standard,
0:29:45 > 0:29:48and it will be a really nice place for them to live.
0:29:48 > 0:29:51Angela purchased the property at auction for 47,000,
0:29:51 > 0:29:58and spent 60,000 on converting it, making her total outlay £107,000.
0:29:58 > 0:30:02What would the agents value it at if she wanted to sell it on?
0:30:02 > 0:30:07We'd see this property fetching between £105,000 and £110,000.
0:30:07 > 0:30:09I would look to market the property at £110,000
0:30:09 > 0:30:11and attract offers in that region.
0:30:11 > 0:30:17Well, that's OK. We obviously haven't done it to make a profit.
0:30:17 > 0:30:19Yeah, that's very pleasing.
0:30:19 > 0:30:24The important thing here was that Angela created somewhere
0:30:24 > 0:30:26that she and her family could call home,
0:30:26 > 0:30:29and she's certainly achieved that.
0:30:29 > 0:30:33It does feel like home, and I've enjoyed seeing my ideas,
0:30:33 > 0:30:39you know, coming into being, and that's been very satisfying.
0:30:49 > 0:30:53I'm in the market town of Brampton, about nine miles east of Carlisle.
0:30:53 > 0:30:56The place is absolutely steeped in history.
0:30:56 > 0:30:59It's on the route of Hadrian's Wall. Look at the age of the buildings,
0:30:59 > 0:31:02from the 15th, 16th, 17th and 18th centuries.
0:31:02 > 0:31:06Blimey, even Bonnie Prince Charlie stayed here.
0:31:06 > 0:31:10This was Charlie's headquarters in 1745,
0:31:10 > 0:31:13when he laid siege to Carlisle.
0:31:13 > 0:31:16Well, just off Brampton main street is the property I'm here to see,
0:31:16 > 0:31:19but before I even get to it, I'm seeing a few issues.
0:31:19 > 0:31:21You've got this fish-and-chip shop there,
0:31:21 > 0:31:24and these are the rubbish bins from the shop.
0:31:24 > 0:31:28They're a permanent feature, and not a very nice entrance to your property.
0:31:28 > 0:31:32This is called a lane, but who knows whether or not it's an adopted lane?
0:31:32 > 0:31:35If it isn't, you're responsible for its upkeep.
0:31:35 > 0:31:39Second slight problem I'm seeing is these cars.
0:31:39 > 0:31:41They're owned by the people who live round here,
0:31:41 > 0:31:44but they're right in front of the property I'm here to see,
0:31:44 > 0:31:47and if nobody owns this road, it's really debatable
0:31:47 > 0:31:51whether or not people can park here, so that could be an issue.
0:31:51 > 0:31:53The property itself is certainly substantial.
0:31:53 > 0:31:57The lower part of this building used to be a pub around 50 years ago.
0:31:57 > 0:32:00It was converted to residential, originally two flats.
0:32:00 > 0:32:02You got one door there, one door over there.
0:32:02 > 0:32:05Now knocked into one. It's going to be complicated,
0:32:05 > 0:32:08but let's take a look inside.
0:32:08 > 0:32:10# It takes two, baby
0:32:10 > 0:32:12# To make a dream come true
0:32:13 > 0:32:15# Just take two...
0:32:15 > 0:32:19Yeah, this property is a toofer - you get two for the price of one.
0:32:19 > 0:32:23So even with the smell of fried fish and slightly dodgy access issues,
0:32:23 > 0:32:26it's still going to be as cheap as chips.
0:32:26 > 0:32:29I get the feeling the layout of this place
0:32:29 > 0:32:32is going to be a difficult thing to get your head round,
0:32:32 > 0:32:34but I will do my best. In through that front door
0:32:34 > 0:32:37to a living-room area here. Good-size space, so we like that.
0:32:37 > 0:32:40Off that is the kitchen.
0:32:40 > 0:32:42Looks fairly grubby, I have to say,
0:32:42 > 0:32:46but the units, I think, could possibly be salvageable.
0:32:46 > 0:32:49Through that little archway there you've got a bathroom,
0:32:49 > 0:32:51storage cupboard, and on to the bedroom.
0:32:51 > 0:32:54The back bedroom in this part of the property
0:32:54 > 0:32:58leaves a lot to be desired, but it just needs a thorough clean.
0:33:04 > 0:33:06The bathroom is in a right old state.
0:33:06 > 0:33:10It needs a really good scrub, and maybe some clever lighting
0:33:10 > 0:33:13would help to lift the gloom from this room.
0:33:13 > 0:33:17Now, that is this flat, which originally was one on its own.
0:33:17 > 0:33:20We know it's been knocked through. But that's the start.
0:33:20 > 0:33:24Then through here into what was the second flat,
0:33:24 > 0:33:28and through this door, the other entrance door,
0:33:28 > 0:33:32into a similar-size main living-room area.
0:33:32 > 0:33:35Looks like there's been a bit of a problem with damp in here.
0:33:35 > 0:33:38That could just be that the property hasn't been lived in for a while.
0:33:38 > 0:33:42But off here, double doors, you've got your kitchen,
0:33:42 > 0:33:44and then it winds round. Another bedroom,
0:33:44 > 0:33:46another bathroom.
0:33:46 > 0:33:50- You got an idea of what it's like? - HE LAUGHS
0:33:50 > 0:33:51Through here. Let's see.
0:33:51 > 0:33:54At the back of the kitchen, a shortish hall
0:33:54 > 0:33:56leads you to a really large bedroom,
0:33:56 > 0:33:59with fitted wardrobes that go on forever -
0:33:59 > 0:34:01easy enough to sort out.
0:34:01 > 0:34:04And then another bathroom with a few tiny issues.
0:34:04 > 0:34:07Start from scratch here, I think.
0:34:07 > 0:34:09So, as you can see, this unusual property
0:34:09 > 0:34:12has two very nearly self-contained flats.
0:34:12 > 0:34:16So, let's just talk through the financial possibilities
0:34:16 > 0:34:20for this project. Let's say you buy the property
0:34:20 > 0:34:23as it is for around the upper side of the guide price, 50,000 quid.
0:34:23 > 0:34:27You spend £10,000 restoring each flat,
0:34:27 > 0:34:31and I think the way to go is to convert it back into two flats.
0:34:31 > 0:34:33So you've spent around £70,000.
0:34:33 > 0:34:38Each of these flats around here, probably worth around 50,000 quid,
0:34:38 > 0:34:40so £100,000 you're going to get back.
0:34:40 > 0:34:42Take off your costs, you'll make about 25,000 quid.
0:34:42 > 0:34:45The alternative is to think about renting them out.
0:34:45 > 0:34:48Each of these flats would get you about £350 a month.
0:34:48 > 0:34:52That's £700 a month for the two. That's £8,400 a year.
0:34:52 > 0:34:55That is a 12 percent yield on your investment.
0:34:55 > 0:34:58Either way, there's money to be made here.
0:35:06 > 0:35:10The property is leasehold, owned by the upstairs occupant.
0:35:10 > 0:35:12The lease is 1,000 years,
0:35:12 > 0:35:15and it has been renewed in the last ten years.
0:35:15 > 0:35:17So, out the rear of the property,
0:35:17 > 0:35:20and there's this - well, back area. I don't know what to call it.
0:35:20 > 0:35:23It's hardly a courtyard. It's sunken down,
0:35:23 > 0:35:27so it's not somewhere you're going to use very much, I don't think.
0:35:27 > 0:35:29What is quite useful, rear access to the property,
0:35:29 > 0:35:32little lane running at the back there, up those stairs.
0:35:32 > 0:35:36You've also got a bit of extra storage here,
0:35:36 > 0:35:40and an outside loo, and rear entrance to the second flat
0:35:40 > 0:35:41over there.
0:35:41 > 0:35:45And...oh, it's a bit of an unusable space,
0:35:45 > 0:35:48but it's the only garden you've got.
0:35:48 > 0:35:50# It takes two, baby
0:35:50 > 0:35:52# To make a dream come true #
0:35:54 > 0:35:56All in all, an unusual little set-up,
0:35:56 > 0:35:58with two kitchens, two bathrooms,
0:35:58 > 0:36:02and all laid out like it's still two flats. But it's not.
0:36:03 > 0:36:05I wonder what a local estate agent thinks.
0:36:05 > 0:36:07'I think it's a great location.'
0:36:07 > 0:36:10You'd probably be looking at somebody
0:36:10 > 0:36:12that would buy the property to rent it out,
0:36:12 > 0:36:15or perhaps a family looking to get their son, daughter,
0:36:15 > 0:36:19onto the property ladder. It would have great potential for that.
0:36:19 > 0:36:22'It's very comparable with Carlisle city centre as well,
0:36:22 > 0:36:25'so you would have a demand for one-bedroom apartments.
0:36:25 > 0:36:29Obviously it's not as big a demand as if you had a two- or three-bedroom property.'
0:36:29 > 0:36:33One bedroom, the market is always that little bit narrower.
0:36:33 > 0:36:35But, yes, there's definitely a need for it.
0:36:35 > 0:36:38So, a lot of property for the money,
0:36:38 > 0:36:41and I don't think it would necessarily cost too much
0:36:41 > 0:36:45to get this place sorted out. Obviously reconvert into two flats
0:36:45 > 0:36:49for maximum potential and profit. Let's see who fancied it
0:36:49 > 0:36:51when it went under the hammer.
0:36:51 > 0:36:56Lot 13, lucky for some. A spacious ground-floor property,
0:36:56 > 0:36:59originally two one-bed flats. Let's see your hand at 40.
0:36:59 > 0:37:0140 I have. At £40,000. We're up and away.
0:37:01 > 0:37:05I'll take it in ones, nice and easy. You're not in the mood. It's cold.
0:37:05 > 0:37:0841 I have. 41. 42, madam?
0:37:08 > 0:37:0943, sir.
0:37:09 > 0:37:1144, 45.
0:37:11 > 0:37:14Shake of the head. It's with you at 44.
0:37:14 > 0:37:17Are we all out at 44? It's too cheap.
0:37:17 > 0:37:20Don't let her have it. 45, sir.
0:37:20 > 0:37:23Can I say? 45 I have.
0:37:23 > 0:37:2546, madam. 47, sir.
0:37:25 > 0:37:2848. 49.
0:37:28 > 0:37:2950.
0:37:29 > 0:37:3251? Shake of the head at 51.
0:37:32 > 0:37:34It's with you, madam, at 50.
0:37:34 > 0:37:35Bull's-eye.
0:37:35 > 0:37:39At £50,000, then. All done? All out?
0:37:39 > 0:37:4151, 52.
0:37:41 > 0:37:45New position here. 53? Shake of the head.
0:37:45 > 0:37:47All done? All out? First time...
0:37:47 > 0:37:5052 second time, then. Third and final time.
0:37:50 > 0:37:53All finished. Sold to the pretty lady.
0:37:53 > 0:37:57Sold to Anita for £52,000.
0:37:57 > 0:38:01She bought this along with her husband and brother-in-law.
0:38:01 > 0:38:04She's just started out in property development,
0:38:04 > 0:38:07and this is her second purchase.
0:38:07 > 0:38:10- Anita, congratulations. - Thank you very much!- Well done.
0:38:10 > 0:38:14- So, what do you do when you're not doing this kind of thing? - I work for the county council
0:38:14 > 0:38:17- in the libraries.- Oh, wow! - A completely different day job.
0:38:17 > 0:38:20- And your husband? - He works for an oil company...- OK.
0:38:20 > 0:38:23..in marketing, so again, nothing to do with property.
0:38:23 > 0:38:27- Why did you want to buy this place? - We came in to have a look at it
0:38:27 > 0:38:30- initially to discount it, really. - What do you mean?
0:38:30 > 0:38:33We were looking at a variety of properties coming up for auction,
0:38:33 > 0:38:37and the shared yard put me off. But actually, when I came in,
0:38:37 > 0:38:40I loved it. I think it's quite spacious.
0:38:40 > 0:38:42They'll make lovely one-bedroomed flats,
0:38:42 > 0:38:44and they're right in the centre of town,
0:38:44 > 0:38:46so we really like them.
0:38:49 > 0:38:53'Anita went into this venture with her husband and brother-in-law
0:38:53 > 0:38:55'as a three-way share. How did that come about?'
0:38:55 > 0:38:58My husband and I bought one at auction last year,
0:38:58 > 0:39:01and when we mentioned to our brother-in-law
0:39:01 > 0:39:04that we were thinking of buying again, he said he'd like to come in.
0:39:04 > 0:39:07He lives abroad, so he's very much a silent partner.
0:39:07 > 0:39:09He's been home once to see them.
0:39:09 > 0:39:13He wasn't at the auction, but there's three of us in on the project.
0:39:13 > 0:39:18- But helped with the finances, giving you that all-important cash.- Yeah.
0:39:18 > 0:39:20- How did the last project go? - It was pretty good.
0:39:20 > 0:39:23We got the property at a good price, but it took longer
0:39:23 > 0:39:26than we would have liked to get all the work done,
0:39:26 > 0:39:28and we learned important lessons on the way.
0:39:28 > 0:39:31- What was the most important lesson? - I think it's the schedule of work,
0:39:31 > 0:39:34getting the workmen to come in one after the other,
0:39:34 > 0:39:39keeping on top of it and making sure everything's progressing on time.
0:39:39 > 0:39:42Cos if one person doesn't turn up, they have to go away.
0:39:42 > 0:39:45If the plumber doesn't turn up, you lose the plasterer.
0:39:45 > 0:39:47That's it, yeah.
0:39:47 > 0:39:50With the property world in the shape it's in at the moment,
0:39:50 > 0:39:54it's interesting that new recruits are still entering the market.
0:39:57 > 0:40:00Money isn't making an awful lot in the bank at the moment.
0:40:00 > 0:40:02Property prices are continuing to decline,
0:40:02 > 0:40:06so there are bargains out there. So we thought we'd just give it a go
0:40:06 > 0:40:09- and see how we come on. - What's the plan for it -
0:40:09 > 0:40:12to do it up and sell it on, or rent it out, or what?
0:40:12 > 0:40:15We're open to either. We'll probably put them on the market
0:40:15 > 0:40:18either for rental or for sale, and see what happens.
0:40:18 > 0:40:21We'll be happy to keep hold of them and rent them out
0:40:21 > 0:40:25- until the market stabilises a bit. - What do you think about this place
0:40:25 > 0:40:27as it is at the moment? What do you like about it
0:40:27 > 0:40:31- and what don't you like? - I like the fact it's spacious.
0:40:31 > 0:40:34'There's a decent amount of storage in both properties,
0:40:34 > 0:40:37'and the central location. And actually,
0:40:37 > 0:40:40'if you look behind the dirt and cobwebs,
0:40:40 > 0:40:43'there's only one wall to rebuild between the two
0:40:43 > 0:40:45'to separate them back into two properties,
0:40:45 > 0:40:47'so it's a minimal amount of work.'
0:40:47 > 0:40:50That should be a simple fix, then,
0:40:50 > 0:40:53but keeping the plans, and therefore budget, realistic
0:40:53 > 0:40:55will be key to making money here.
0:40:55 > 0:40:58First thing will be to get the new heating system,
0:40:58 > 0:41:01so we're going to have electric storage heaters put in.
0:41:01 > 0:41:04Then we're going to have the new kitchens put in,
0:41:04 > 0:41:08new UPVC double glazing to match in with the upstairs property,
0:41:08 > 0:41:11new doors, and then redecoration, new carpets.
0:41:11 > 0:41:16- Who's going to do the work? - We've got professionals lined up
0:41:16 > 0:41:19to do all of the work. We'll take the kitchens out,
0:41:19 > 0:41:21take some of the tiles off and things like that,
0:41:21 > 0:41:25- but we'll do the demolition side and they can do the professional job.- OK.
0:41:25 > 0:41:29- What kind of budget have you got? - We're hoping to have a maximum spend
0:41:29 > 0:41:32of 75,000. So we paid 52,000 for them,
0:41:32 > 0:41:35so around 23.
0:41:35 > 0:41:38- Right.- Hopefully 20, with a 3,000 contingency.
0:41:38 > 0:41:41You should to do it for that. Keep a tight rein on the budget...
0:41:41 > 0:41:43- Hopefully less, but... - Negotiate hard,
0:41:43 > 0:41:46and there are bargains to be had. And timescale?
0:41:46 > 0:41:50Hopefully eight to ten weeks. We may bring it in earlier than that,
0:41:50 > 0:41:55but having learned lessons from the last property, better to err on the side of caution.
0:41:55 > 0:41:57Congratulations. I'm delighted for you.
0:41:57 > 0:41:59I look forward to seeing how you get on.
0:42:01 > 0:42:04So, how will Anita and her partners get on sorting this place out?
0:42:04 > 0:42:07I think they're definitely doing the right thing,
0:42:07 > 0:42:10converting it back into two flats,
0:42:10 > 0:42:12cos there's certainly money to be made.
0:42:12 > 0:42:15All seems pretty much like it'll go to plan,
0:42:15 > 0:42:17but with properties, you just never know.
0:42:17 > 0:42:19Find out how they get on later in the show.
0:42:22 > 0:42:26Well, the plans and dreams seem good at the time.
0:42:26 > 0:42:29The months have gone by. Have those dreams become a reality?
0:42:29 > 0:42:31Let's go back and find out.
0:42:32 > 0:42:35We head back to Chatham in Kent now,
0:42:35 > 0:42:37where seasoned property developer Michael
0:42:37 > 0:42:42purchased this impressive plot at auction for 275,000.
0:42:42 > 0:42:47'But he did so without his son and business partner Matthew's knowledge.'
0:42:47 > 0:42:50Dad did the bidding. I wasn't there, unfortunately.
0:42:50 > 0:42:53- He'd have stopped me. - I wouldn't have done that.
0:42:53 > 0:42:55He does a great job at auction.
0:42:55 > 0:42:58'So, there was no stopping him at the auction.
0:42:58 > 0:43:01'Let's hope the same goes for this pair's plan
0:43:01 > 0:43:04'to turn the plot into four semi-detached properties
0:43:04 > 0:43:07'within six months. We're here ten months later
0:43:07 > 0:43:10'to see what's been going on.'
0:43:26 > 0:43:28There's still a few weeks' work left to do,
0:43:28 > 0:43:32but this is unrecognisable as the overgrown plot
0:43:32 > 0:43:36of ten months ago. Each property comprises a living room
0:43:36 > 0:43:39and open-plan kitchen/diner on the ground floor.
0:43:39 > 0:43:42There are three good-sized bedrooms
0:43:42 > 0:43:46and a family bathroom on the first floor, and on the top floor,
0:43:46 > 0:43:50a master bedroom and that much-needed en suite
0:43:50 > 0:43:53which was lacking on the original plans.
0:43:53 > 0:43:57Well, this is the master bedroom. We wanted to go for a high-spec
0:43:57 > 0:44:00because these days, that's what sells the house.
0:44:00 > 0:44:04We will be putting cupboards later on in here.
0:44:04 > 0:44:07We think that, er, being the master bedroom,
0:44:07 > 0:44:10more storage is very important.
0:44:10 > 0:44:14And again we went up-spec in the bathroom/shower room,
0:44:14 > 0:44:17and basically, again, it's to sell the house,
0:44:17 > 0:44:21because that's the name of the game these days - to be the best.
0:44:21 > 0:44:24The other change they made to the original plans
0:44:24 > 0:44:27was opting against a completely open-plan ground floor,
0:44:27 > 0:44:30and keeping the living room separate from the kitchen/diner.
0:44:30 > 0:44:35We over-designed the kitchen so that we could having a dining area here,
0:44:35 > 0:44:38which has worked out very well,
0:44:38 > 0:44:42and the big problem was that I have a thing about black and white,
0:44:42 > 0:44:45which you can see we achieved,
0:44:45 > 0:44:48but then I had this area here,
0:44:48 > 0:44:50and I didn't know what to do,
0:44:50 > 0:44:55and so I rang my daughter, who's an interior designer,
0:44:55 > 0:44:58and she said, rather frighteningly,
0:44:58 > 0:45:01"Why don't you use red, dark red?"
0:45:01 > 0:45:06And by sheer fluke, I remembered the tile about four years ago,
0:45:06 > 0:45:09rushed round to the ceramic people,
0:45:09 > 0:45:13walked in and said, "I want six metres of those,"
0:45:13 > 0:45:16and I think they've really done a superb job,
0:45:16 > 0:45:18and I'm very pleased with it.
0:45:18 > 0:45:23The dapper gents had planned on a six-month timescale for the project,
0:45:23 > 0:45:26but came up against a few obstacles.
0:45:26 > 0:45:28We have overrun to what we wanted.
0:45:28 > 0:45:31The schedule hasn't overrun, if you take into consideration
0:45:31 > 0:45:34the cold weather we had, because that's a month and a half.
0:45:34 > 0:45:37We can't build then. There's only so much you can do.
0:45:37 > 0:45:41One of the biggest problems was diverting the main sewer.
0:45:41 > 0:45:44- Absolutely. - That's really put time on,
0:45:44 > 0:45:46and they're only finishing it now.
0:45:46 > 0:45:49Specialist finishes always take that little bit longer.
0:45:49 > 0:45:53Luckily, the £400,000 budget was another matter.
0:45:53 > 0:45:55- Spot on.- Spot on!
0:45:55 > 0:45:57Seriously, spot on. Yeah.
0:45:57 > 0:45:59- Yeah. We're very happy with it.- Yeah.
0:45:59 > 0:46:02The properties will look even better
0:46:02 > 0:46:04when the outside work is done and dusted,
0:46:04 > 0:46:07and finishing touches added inside.
0:46:07 > 0:46:10Opting for a higher spec is an excellent choice,
0:46:10 > 0:46:12particularly in such a difficult market.
0:46:12 > 0:46:16It's corny, but it's going to be a very nice unit to live in.
0:46:16 > 0:46:18This is a higher spec than we normally do,
0:46:18 > 0:46:21and I think we're going to be sticking to it,
0:46:21 > 0:46:24so we'll be ahead, we like to think, of the others.
0:46:24 > 0:46:26The market is so tough today.
0:46:26 > 0:46:30There'll be four buyers somewhere in the area.
0:46:30 > 0:46:34- We have to capture them. - We want 'em first!- Yes.
0:46:34 > 0:46:39Well, before they go buyer-catching, we invited two local estate agents
0:46:39 > 0:46:42to give us their opinions on this plot-to-property project.
0:46:42 > 0:46:44'I think they've done a very high specification,
0:46:44 > 0:46:46'and they're really nice houses.'
0:46:46 > 0:46:50They've ticked everything, as long as they finish the gardens nicely,
0:46:50 > 0:46:52they do the front nicely with paving,
0:46:52 > 0:46:56so that it really does give a good impression when you pull up.
0:46:56 > 0:46:59'It's a very nice specification.'
0:46:59 > 0:47:02Especially kitchen, bathroom tends to sell a house,
0:47:02 > 0:47:05and both of them are really good spec.
0:47:05 > 0:47:08The plot was 275,000 at auction,
0:47:08 > 0:47:11and the work cost £400,000,
0:47:11 > 0:47:14making their total outlay 675,000.
0:47:14 > 0:47:18If Matthew and Michael were interested in renting the houses out,
0:47:18 > 0:47:20what return could they expect?
0:47:20 > 0:47:24I think the rental in pounds per calendar month
0:47:24 > 0:47:28could be in a range of £1,000 to £1,200.
0:47:28 > 0:47:32£950 per calendar month to £1,000 per calendar month.
0:47:32 > 0:47:35We're not into renting. It's not in our minds.
0:47:35 > 0:47:37But they're rather reassuring figures.
0:47:37 > 0:47:40So they're all for selling.
0:47:40 > 0:47:43What would the estate agents market each of the four properties for?
0:47:43 > 0:47:46I would value each property individually
0:47:46 > 0:47:51in the region of £300,000 to £325,000.
0:47:51 > 0:47:55I think we'd be looking at somewhere in the region of £250,000
0:47:55 > 0:47:58to £275,000.
0:47:58 > 0:48:00Based on those figures,
0:48:00 > 0:48:04Matthew and Michael could be looking at a pre-tax profit
0:48:04 > 0:48:08of between 325,000 and 625,000,
0:48:08 > 0:48:11minus the usual selling expenses.
0:48:11 > 0:48:14But the pair were dubious about the higher figure.
0:48:14 > 0:48:18I think the three to three-whatever was way off the mark.
0:48:18 > 0:48:22- It's quite high.- Yeah.- You can get a lot of property in this area
0:48:22 > 0:48:26that's maybe not new, but a lot of square footage, for that money.
0:48:26 > 0:48:29Now, we would have said the other person was spot on.
0:48:29 > 0:48:31Yes, I agree.
0:48:31 > 0:48:34This duo really do know their stuff.
0:48:34 > 0:48:37So what's the true story behind their teamwork?
0:48:37 > 0:48:40I'm the guy that walks by and buys it,
0:48:40 > 0:48:43and then he sorts it all out because I've made a mistake.
0:48:43 > 0:48:45- Yes, that's the truth. - That is the truth.
0:48:52 > 0:48:55We're back in Brampton near Carlisle to see how Anita got on
0:48:55 > 0:48:59with her "buy one, get one free" property beside the chip shop.
0:49:02 > 0:49:06Anita bought this property with her husband and brother-in-law,
0:49:06 > 0:49:09keeping it in the family. The flats are spread across the ground floor
0:49:09 > 0:49:13of this building. For some reason they had been knocked into one,
0:49:13 > 0:49:16although they had two kitchens and two bathrooms,
0:49:16 > 0:49:19as well as separate gas and water supplies.
0:49:19 > 0:49:22But Anita wasn't daunted by the scale of the project.
0:49:22 > 0:49:25There's only one wall to rebuild between the two,
0:49:25 > 0:49:27to separate them back into two properties,
0:49:27 > 0:49:30so it's a minimal amount of work.
0:49:31 > 0:49:36Anita had snapped these flats up at £52,000 for the pair.
0:49:39 > 0:49:43She planned to spend £23,000 refurbishing the flats,
0:49:43 > 0:49:46and hoped to complete the work in eight to ten weeks.
0:49:46 > 0:49:48We've come back five months later
0:49:49 > 0:49:51to see how well the flats have scrubbed up.
0:50:01 > 0:50:03Those grimy, dingy rooms
0:50:03 > 0:50:06are now sparkling bright and squeaky clean.
0:50:09 > 0:50:12The division between the flats has been reinstated,
0:50:12 > 0:50:15and there are now two light and fresh one-bedroom flats.
0:50:15 > 0:50:18Planning permission was fairly straightforward
0:50:18 > 0:50:21because they were originally two properties,
0:50:21 > 0:50:24and they'd been put back into one without planning permission,
0:50:24 > 0:50:28so we just submitted the plans and the maps of the area,
0:50:28 > 0:50:30and it came through pretty quickly.
0:50:32 > 0:50:35It's not clear who owns the land at the front of the flats,
0:50:35 > 0:50:40so the only outside space the flats have is at the rear of the property.
0:50:40 > 0:50:42It was a rather dark and run-down area,
0:50:42 > 0:50:44but now it's practically a garden.
0:50:44 > 0:50:48We've decorated the outside, put new windows in,
0:50:48 > 0:50:50new heating, new bathrooms.
0:50:50 > 0:50:52One new kitchen. Refurbished the other.
0:50:52 > 0:50:55New back doors. Redecorated, new carpets.
0:50:55 > 0:50:59Just everything, basically. Just refurbished everything.
0:50:59 > 0:51:02# It takes two, baby
0:51:02 > 0:51:04# To make a dream come true
0:51:06 > 0:51:07# Just take two #
0:51:07 > 0:51:11Of course, buying two run-down flats means replacing everything twice -
0:51:11 > 0:51:15two front doors, two bathrooms... Well, I could go on.
0:51:15 > 0:51:17Maybe it's not such good value for money.
0:51:17 > 0:51:21So this was the new wall that we've had built up
0:51:21 > 0:51:25to separate the properties back into two one-bedroomed,
0:51:25 > 0:51:27which was actually very straightforward,
0:51:27 > 0:51:31but I am a bit of a perfectionist, and these were the original doors.
0:51:31 > 0:51:34We didn't have a budget to replace them,
0:51:34 > 0:51:37and I did spend four hours with a Stanley-knife blade
0:51:37 > 0:51:40cleaning off all the old paint and polishing the glass back up
0:51:40 > 0:51:42to make it a decent finish.
0:51:42 > 0:51:45And this is the brand-new kitchen that we've put in.
0:51:45 > 0:51:48And whilst it's a really old property,
0:51:48 > 0:51:51we did feel it was better to go for a more contemporary look
0:51:51 > 0:51:53to appeal to more people.
0:51:53 > 0:51:56In this flat, Anita felt the kitchen was beyond saving,
0:51:56 > 0:51:58but throughout the two properties,
0:51:58 > 0:52:01she has refurbished and re-used where she could.
0:52:03 > 0:52:06In the bedroom, she decided to dismantle
0:52:06 > 0:52:10all the broken-down wall cupboards. Well, they were a tad dated.
0:52:12 > 0:52:16She treated next door slightly differently.
0:52:16 > 0:52:20So, we decided in this property to keep the existing kitchen,
0:52:20 > 0:52:23simply because, if we do go down the line of renting it out,
0:52:23 > 0:52:25we thought it would be good enough standard,
0:52:25 > 0:52:29but we have had new tiles, a new cooker, work surfaces and sink,
0:52:29 > 0:52:32and put some new handles on just to tidy it up.
0:52:32 > 0:52:35So we think it looks quite good as it is.
0:52:35 > 0:52:38And then in the living room,
0:52:38 > 0:52:41all of these walls have had a damp-proofing course.
0:52:41 > 0:52:44'Through in the bedroom, we do still have a slight issue.
0:52:44 > 0:52:47'There's one small area of damp on the wall,
0:52:47 > 0:52:50'which is the result of a water leak from the property above,
0:52:50 > 0:52:53'but there's been no heating in here up until now,
0:52:53 > 0:52:55'so we'll get it put on. If that doesn't dry out,
0:52:55 > 0:52:58'I will get the damp-proofing people back just for one day,
0:52:58 > 0:53:02'to make it absolutely perfect and get it all dried out.'
0:53:02 > 0:53:04We actually started decorating,
0:53:04 > 0:53:07and we realised that one of the walls wasn't drying out.
0:53:07 > 0:53:11We knew we'd had a water leak in the wall from the property above,
0:53:11 > 0:53:15but when we got a contractor to come out and check,
0:53:15 > 0:53:17they found that we had rising damp,
0:53:17 > 0:53:20so they took the opportunity to check both properties,
0:53:20 > 0:53:23and as they went round, the machine beeped louder and louder,
0:53:23 > 0:53:26and screamed all the way round both houses,
0:53:26 > 0:53:29so we ended up having to have a damp-proof course put in
0:53:29 > 0:53:31just about every single wall in both properties,
0:53:31 > 0:53:35but at least now we know that the work's been done,
0:53:35 > 0:53:38and we shouldn't have any problems in the future.
0:53:38 > 0:53:42The damp problem meant Anita's schedule and budget needed revising.
0:53:42 > 0:53:46The refurbishment took a month longer than the eight to ten weeks
0:53:46 > 0:53:50she'd originally planned, and that had an impact on the budget.
0:53:51 > 0:53:54'We've gone over the original budget slightly.'
0:53:54 > 0:53:56We had built in a contingency,
0:53:56 > 0:53:59but we hadn't counted in the damp-proof course,
0:53:59 > 0:54:02which has actually been our biggest bill for both properties.
0:54:02 > 0:54:05So we've probably gone a couple of thousand over.
0:54:05 > 0:54:07We're waiting for some bills to come in,
0:54:07 > 0:54:10but slightly over, including the contingency.
0:54:10 > 0:54:13So this pair of properties took longer and cost more.
0:54:13 > 0:54:16It's time to find out if this toofer will make double the money
0:54:16 > 0:54:18for Anita and her partners.
0:54:18 > 0:54:22We asked two local property experts for their opinions.
0:54:22 > 0:54:26'The right decision has definitely been made to split them into two.'
0:54:26 > 0:54:28First impressions,
0:54:28 > 0:54:30bright. You can see it's newly painted.
0:54:30 > 0:54:33Internally it's very transferable taste,
0:54:33 > 0:54:37neutral throughout, and some nice features.
0:54:37 > 0:54:40The location of the properties are fantastic,
0:54:40 > 0:54:44in the town centre, within walking distance of all the amenities,
0:54:44 > 0:54:47and the sizes of the lounge are good as well.
0:54:47 > 0:54:50Anita and her partners bought the properties
0:54:50 > 0:54:55for 52,000, and spent between 27,000 and 28,000 refurbishing them,
0:54:55 > 0:54:58bringing their total outlay to around 80,000.
0:54:59 > 0:55:01If they were to go on sale,
0:55:01 > 0:55:04what do the estate agents think they're worth now?
0:55:04 > 0:55:08The value of the first property, now that it's finished,
0:55:08 > 0:55:10is in the region of £49,000.
0:55:10 > 0:55:14The value of the second property is slightly more, due to size
0:55:14 > 0:55:17and the new kitchen, at £55,000.
0:55:17 > 0:55:20The resale value of that one I would see sitting
0:55:20 > 0:55:24in around £50,000 to £52,000,
0:55:24 > 0:55:29and the resale for flat two sitting in between £52,000 and £55,000.
0:55:29 > 0:55:32Averaging out those figures would give Anita and her team
0:55:32 > 0:55:37a profit of between 22,000 and 27,000 before costs and expenses.
0:55:38 > 0:55:42The valuations are lower than I had hoped for,
0:55:42 > 0:55:46but I do accept that the market has dropped dramatically
0:55:46 > 0:55:48even since we bought the properties.
0:55:48 > 0:55:51What about rental values?
0:55:51 > 0:55:54The rental figures for flat one
0:55:54 > 0:55:57would be around £350 per calendar month,
0:55:57 > 0:56:01and for flat two, around £375 per calendar month.
0:56:01 > 0:56:03With regards to letting the properties,
0:56:03 > 0:56:07the first property, I would recommend £325 per calendar month.
0:56:07 > 0:56:11The second property, due to the better finish and size,
0:56:11 > 0:56:13£365 per calendar month.
0:56:13 > 0:56:17I'm quite happy with those quotes for renting the properties out,
0:56:17 > 0:56:20and based on the valuations, we will probably go down the line
0:56:20 > 0:56:23of renting them out.
0:56:25 > 0:56:28Although these flats won't make Anita a lot of money
0:56:28 > 0:56:31in the short term, there are other benefits.
0:56:31 > 0:56:33When I came in, I did fall in love with them,
0:56:33 > 0:56:36and I thought they were really nice properties.
0:56:36 > 0:56:39We've found out that they're actually around 500 years old,
0:56:39 > 0:56:45so it's nice that they're kind of up and running again,
0:56:45 > 0:56:46and ready to be moved into.
0:56:49 > 0:56:51We'll be back next time to receive more news
0:56:51 > 0:56:54from the front line of the property world.
0:56:54 > 0:56:56- Join us then for more Homes Under The Hammer.- See you.
0:56:56 > 0:56:57- Goodbye.- Goodbye.
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0:57:06 > 0:57:06.