0:00:02 > 0:00:05Hello. Well, whether you bought your property as a home or an investment,
0:00:05 > 0:00:08you'll want to make sure that you've bought wisely.
0:00:08 > 0:00:10Now, they can be difficult to find,
0:00:10 > 0:00:13but what you're actually looking for is value for money.
0:00:13 > 0:00:16And one way you might find that is by going to the auction.
0:00:42 > 0:00:45From run-down flats to gorgeous, sprawling mansions,
0:00:45 > 0:00:47everything's on offer at auction.
0:00:47 > 0:00:50So here are the properties that had our buyers
0:00:50 > 0:00:53putting their hands in their pockets on today's show.
0:00:54 > 0:00:57'I find a demolition site in Ilkeston near Derby
0:00:57 > 0:00:59'that thinks it might be a town house.'
0:00:59 > 0:01:00Wow.
0:01:02 > 0:01:04They weren't kidding.
0:01:04 > 0:01:09'In Kent, I might not need a miner's helmet to visit this property,'
0:01:09 > 0:01:12but I'm thinking it's a money pit.
0:01:14 > 0:01:18'And this cul-de-sac in Warrington may be on the wrong lines.'
0:01:18 > 0:01:23THAT is a mainline railway. So if you're a train spotter, excellent.
0:01:26 > 0:01:29'All these properties have been sold at auction.
0:01:29 > 0:01:32'And we'll find out who bought them, and what they paid for them,
0:01:32 > 0:01:35- 'when they went under the hammer.' - Sold to you, sir.
0:01:36 > 0:01:40I'm in Ilkeston, a former mining town
0:01:40 > 0:01:43in the Erewash Valley on the borders of Derbyshire.
0:01:43 > 0:01:48In October, this is home to one of the biggest street fairs in the world.
0:01:48 > 0:01:52It's also one of the oldest, starting around 1200.
0:01:52 > 0:01:56However, the property I'm here to see is slightly younger than that.
0:01:58 > 0:02:01'I'm heading for the outskirts of Ilkeston now,
0:02:01 > 0:02:04'about half a mile from the town centre.
0:02:04 > 0:02:08'Most of the properties in the area are small terraced houses and flats.
0:02:08 > 0:02:09'Many people rent their homes.
0:02:09 > 0:02:12'But, for buyers, you get a lot of house for your money,
0:02:12 > 0:02:15'which is why investors are drawn here from nearby Nottingham.'
0:02:17 > 0:02:20Well, the property I'm here to see is three storeys,
0:02:20 > 0:02:23a four-bedroomed house at the moment.
0:02:23 > 0:02:25But the auction catalogue says it has potential for conversion
0:02:25 > 0:02:29into two flats. Which, given its guide price, which is £60,000,
0:02:29 > 0:02:31makes it an interesting proposition.
0:02:31 > 0:02:34However, I do understand it is work in progress.
0:02:36 > 0:02:39'The patchwork rendering needs some serious attention.
0:02:41 > 0:02:43'As does the rear yard.
0:02:43 > 0:02:46'So, not the best start,
0:02:46 > 0:02:48'even for an auction property with such a low guide price.
0:02:48 > 0:02:52'However, the double glazing means that's one job
0:02:52 > 0:02:53'you won't have to budget for.'
0:02:55 > 0:02:56Wow.
0:02:59 > 0:03:05They weren't kidding! This needs a bit more investigation.
0:03:05 > 0:03:07I need to come round.
0:03:07 > 0:03:11# It's a one-way ticket to a madman situation. #
0:03:11 > 0:03:15'It's quite a sight to see a house in this state of disrepair.
0:03:15 > 0:03:20'It's been taken right down to what looks like foundations.'
0:03:21 > 0:03:25Well! Maybe the property was previously owned by a mole,
0:03:25 > 0:03:29or somebody with, definitely, a penchant for earthworks.
0:03:29 > 0:03:31In case you can't figure out what's gone on, though,
0:03:31 > 0:03:34this would have been the level of the ground floor.
0:03:34 > 0:03:38Underneath here would have been hidden, and my guess is that,
0:03:38 > 0:03:41over time, this has got very damp, which has probably ended up
0:03:41 > 0:03:43in the floorboards rotting, maybe even dry rot.
0:03:43 > 0:03:47So what somebody's done is got rid of the entire floor and the joists.
0:03:47 > 0:03:50They're obviously digging some kind of channels in here,
0:03:50 > 0:03:54which I guess would be to create walls, or whatever.
0:03:54 > 0:03:56But whatever HAS gone on,
0:03:56 > 0:04:00there is clearly a lot of work to do to sort this out.
0:04:00 > 0:04:02Not something for the amateur DIY-er.
0:04:05 > 0:04:08'This job certainly needs the professionals.
0:04:10 > 0:04:12'The plus side to this mammoth renovation
0:04:12 > 0:04:16'is that the work already completed here has been done well.
0:04:16 > 0:04:20'The joinery is sound, and the electrics are at the first fix stage.
0:04:20 > 0:04:22'The brickwork also looks sound,
0:04:22 > 0:04:26'and there are even some tools to do the job.'
0:04:29 > 0:04:32Well, up on the top floor, more of the same.
0:04:32 > 0:04:37Definitely work in progress! So what could you do with this place?
0:04:37 > 0:04:39Well, currently it was a four-bedroomed house.
0:04:39 > 0:04:43But this place is crying out for conversion into flats.
0:04:43 > 0:04:47The auction catalogue said you could get two flats out of this.
0:04:47 > 0:04:49I reckon it's three.
0:04:49 > 0:04:52'One on each floor. I think there's easily enough space,
0:04:52 > 0:04:55'and it looks to me like that's what was being planned here.'
0:04:57 > 0:04:59'Planning permission is far from guaranteed
0:04:59 > 0:05:01'for developments like this.
0:05:01 > 0:05:04'So turning this property into three flats is not a done deal.
0:05:07 > 0:05:11'But that guide price WAS a very attractive £60,000,
0:05:11 > 0:05:14'so we asked the auctioneer who sold it for his opinion.'
0:05:17 > 0:05:19There's a strong possibility you'd get consent here for at least two flats.
0:05:19 > 0:05:22I think whether you get a third one,
0:05:22 > 0:05:25will be down to whether you can demonstrate that,
0:05:25 > 0:05:26to get a third flat,
0:05:26 > 0:05:29which inevitably would be on the top floor, you can meet
0:05:29 > 0:05:31'the building regulations.
0:05:31 > 0:05:35'But it will only be restricted in its floor space.'
0:05:36 > 0:05:41'Redeveloping the house into flats is what makes this a great opportunity,
0:05:41 > 0:05:44'as the financial returns should be healthy.'
0:05:44 > 0:05:45If it was converted into two flats,
0:05:45 > 0:05:48then I think we're looking at a rental yield
0:05:48 > 0:05:50of something like £750 a calendar month.
0:05:50 > 0:05:52If you could get a third flat out of it,
0:05:52 > 0:05:56bearing in mind the second flat then wouldn't be quite so large,
0:05:56 > 0:05:59'that's going to go up to £850-900 per calendar month
0:05:59 > 0:06:00'without any doubt.'
0:06:02 > 0:06:04Well, you will either be thinking,
0:06:04 > 0:06:07"I wouldn't touch that place with a barge pole," or,
0:06:07 > 0:06:11"Oh, good, somebody's done a lot of the hard restoration work for me."
0:06:11 > 0:06:14It's a prickly choice. Which camp do you come in?
0:06:14 > 0:06:18Let's find out what happened when it went to the auction.
0:06:18 > 0:06:21Lot number 14, Ilkeston.
0:06:21 > 0:06:25We've got a large three-storey end or corner town house,
0:06:25 > 0:06:27where a scheme of up-grading has begun.
0:06:27 > 0:06:30Where do you want to bid on this? Start me where you will.
0:06:30 > 0:06:3470,000? 65 to start me? Start it at 60, if you will. 60,000.
0:06:34 > 0:06:39£60,000, thank you. 61, someone else, 61. 62?
0:06:39 > 0:06:4362 is bid. 63? 63. 64?
0:06:43 > 0:06:4764,000 at the back of the room. 65. 66?
0:06:47 > 0:06:49£65,000. All done with it?
0:06:49 > 0:06:53At £65,000 for the first time,
0:06:53 > 0:06:56for the second time... 66 is bid.
0:06:56 > 0:06:59That's 66. 67? 68.
0:07:00 > 0:07:0368,000 is the bid on the left. 69.
0:07:03 > 0:07:07At £69,000 for the first time,
0:07:07 > 0:07:1069,000 for the second time, third and...
0:07:10 > 0:07:1270,000. At 70,000.
0:07:12 > 0:07:1571. 71?
0:07:15 > 0:07:17No? £70,000, then. All done?
0:07:17 > 0:07:19For the first time,
0:07:19 > 0:07:22the second time, the third and last time.
0:07:22 > 0:07:24Sold at £70,000, thank you.
0:07:26 > 0:07:30'The successful bid for this work in progress was made by Tom,
0:07:30 > 0:07:32'a local boy, born and bred in Ilkeston.'
0:07:33 > 0:07:35# Mr Sandman
0:07:35 > 0:07:38# Bring me a dream... #
0:07:38 > 0:07:41'Fortunately, he knows a thing or two about buildings.'
0:07:43 > 0:07:46Congratulations. You've got yourself a do-it-yourself 'make a house' kit!
0:07:48 > 0:07:51Why did you want to buy this?
0:07:51 > 0:07:53It's to start a project, really.
0:07:53 > 0:07:56A bit of an investment for the future. And hopefully,
0:07:56 > 0:07:58- one day, retire early.- OK.
0:07:58 > 0:08:01Why take on something that's in this kind of state?
0:08:01 > 0:08:04I don't see it as a problem. A lot would see a big problem.
0:08:04 > 0:08:06I see an advantage, because half the work is done already
0:08:06 > 0:08:09and the difficult bits, the unknowns, have gone.
0:08:09 > 0:08:12Everything is known now, cos it's back to its bare bones.
0:08:12 > 0:08:13- You're a builder then?- Yes.
0:08:13 > 0:08:16- In the building industry, yes. - Right.
0:08:16 > 0:08:20Builders usually don't like taking on projects that other builders haven't finished.
0:08:20 > 0:08:22Often not, but this one -
0:08:22 > 0:08:25what's BEEN done has been done to a reasonable standard.
0:08:25 > 0:08:27Again, everything can be seen.
0:08:27 > 0:08:30There are bits that need altering, bits that aren't quite right.
0:08:30 > 0:08:33- But they'll be addressed. - There's nothing hidden any more.
0:08:33 > 0:08:37All the walls have been stripped. You can see it's a framework to build on.
0:08:37 > 0:08:39It is. Everything's there.
0:08:39 > 0:08:42It's a decent building, there's no real structural problems, as such.
0:08:42 > 0:08:45Everything stands fairly well.
0:08:45 > 0:08:46And it's all good, really.
0:08:50 > 0:08:54This is the third time Tom has been successful at auction.
0:08:54 > 0:08:58He's now built up a small portfolio of houses, flats and new-builds.
0:09:01 > 0:09:05But is everything going to be straightforward for him on THIS project?
0:09:05 > 0:09:07The thing that isn't so good is the planning.
0:09:07 > 0:09:12The planning could be an issue, although there are several properties in the adjoining area
0:09:12 > 0:09:14that have got planning for three apartments.
0:09:14 > 0:09:16I don't see that as a great issue.
0:09:16 > 0:09:20I think the price I've paid is a reasonable price, and I think,
0:09:20 > 0:09:23if I get the planning, which I'm reasonably confident of getting,
0:09:23 > 0:09:27- It'll do fairly well. - It's a risk though, isn't it?
0:09:27 > 0:09:29It is a risk. But anything's a risk.
0:09:29 > 0:09:32You need to calculate the risk and what the benefits are in the returns.
0:09:39 > 0:09:43That may sound risky, but this property is no gamble for Tom.
0:09:43 > 0:09:47As well as being a builder, he's also a qualified quantity surveyor.
0:09:47 > 0:09:49So it's not surprising that he did his homework
0:09:49 > 0:09:52before he went to the auction.
0:09:53 > 0:09:55Right. So what kind of preparation have you done
0:09:55 > 0:09:57to know how much of a risk it is?
0:09:57 > 0:10:01- Did you speak to the planners? - I've not spoken to the planners.
0:10:01 > 0:10:02When I initially looked round,
0:10:02 > 0:10:04I did a bit of a survey of each room,
0:10:04 > 0:10:08sketched out what I know I can and can't do from past projects,
0:10:08 > 0:10:09to sensible size of rooms.
0:10:09 > 0:10:12And I've spoken to an architect friend,
0:10:12 > 0:10:14- and he assures me he doesn't see a problem.- Right.
0:10:14 > 0:10:17The auction catalogue stated it was a four-bed house,
0:10:17 > 0:10:20which it currently is in its more-or-less state,
0:10:20 > 0:10:22or conversion for two flats.
0:10:22 > 0:10:24I believe, having surveyed it, I can get three out of it.
0:10:24 > 0:10:29There's reasonable sizes, which will be determined by the planners, ultimately.
0:10:29 > 0:10:32They'll have the final say, which I'm sure I can get.
0:10:32 > 0:10:34I don't think it suits a four-bedroom house,
0:10:34 > 0:10:37cos there's no garden - and just two parking spaces.
0:10:37 > 0:10:42But you going for three flats presumably increases your profitability quite significantly.
0:10:42 > 0:10:44It does. At two flats, it's OK, and does OK.
0:10:44 > 0:10:47At three, it becomes a good investment.
0:10:47 > 0:10:48Tell me the numbers.
0:10:48 > 0:10:51You've got, it was bought for 70,000 at the auction.
0:10:51 > 0:10:54I expect to spend about 60 on it.
0:10:54 > 0:10:57So it stands at about 130, when it's complete, hopefully.
0:10:57 > 0:11:01And in terms of what you can expect to get for each of the flats, do you have an idea?
0:11:01 > 0:11:06If I get £1,000 a month for the three combined, or 1,200, that'd be great.
0:11:06 > 0:11:10That's not a bad return on the investment. But key to it is this third flat, isn't it?
0:11:10 > 0:11:13It is definitely the key. Like I say, if I don't get it, it does OK.
0:11:13 > 0:11:15If I DO get it, it does really well.
0:11:15 > 0:11:16What are you going to do now?
0:11:16 > 0:11:19I need to get the architect back in, firm up the drawings.
0:11:19 > 0:11:23He'll submit them to the local council, and hopefully within,
0:11:23 > 0:11:25probably 10-12 weeks, I might get a reply.
0:11:25 > 0:11:28The planning should come through, then we're ready to go.
0:11:28 > 0:11:30Will you do any work on it in the meantime?
0:11:30 > 0:11:32In the meantime, it'll probably be left.
0:11:32 > 0:11:35We'll leave it as it is, and we'll talk to the planners
0:11:35 > 0:11:38just to make sure we can get what we want to do.
0:11:38 > 0:11:43Well, good luck. Quite a challenge, but it sounds like you've got the experience to make it a success.
0:11:43 > 0:11:46- There's a lot to do.- Good. I'll let you get on with it!- Thank you.
0:11:48 > 0:11:51So, Tom - the perfect guy to take on this project
0:11:51 > 0:11:53that would faze quite a lot of people.
0:11:53 > 0:11:55But of course, the big question is,
0:11:55 > 0:11:58is he going to get that planning permission?
0:11:58 > 0:12:01At the moment, he doesn't have the right to do what he wants.
0:12:01 > 0:12:04And of course, planners - well, you never know.
0:12:04 > 0:12:06You can find out how he gets on later in the show.
0:12:11 > 0:12:13Ah - Snodland in Kent.
0:12:13 > 0:12:17It sounds like some kind of mythical town in a children's novel.
0:12:17 > 0:12:19But I promise it's real.
0:12:19 > 0:12:22Look, it's all here - shops, roads, real people.
0:12:22 > 0:12:26Nothing fictional about this part of Kent.
0:12:26 > 0:12:31Having said that, there are some bestsellers in the area, and some lovely new editions, too.
0:12:32 > 0:12:35The Victorian property I'm here to see
0:12:35 > 0:12:38has been in the same ownership for 40 years.
0:12:38 > 0:12:42Now, that always gets me excited, because I'm hoping for period gems.
0:12:42 > 0:12:46Fireplaces galore, original cornicing, deep skirting,
0:12:46 > 0:12:47a ceiling rose, perhaps?!
0:12:47 > 0:12:51From the outside - well, I think things look quite promising.
0:12:51 > 0:12:55I know I need to calm down, but, as you can see, it hasn't been touched in years.
0:12:55 > 0:12:58It's still got the original front door, which is gorgeous.
0:12:58 > 0:13:01The guide was set at £90-95,000.
0:13:02 > 0:13:05I can't wait to get inside and have a good old look around.
0:13:11 > 0:13:15I know the crumbling paintwork and dicey pointing may put people off.
0:13:15 > 0:13:18But I think this house is hiding a multitude of gems.
0:13:18 > 0:13:20And whilst I'm sure it's not problem-free,
0:13:20 > 0:13:24these kind of untouched beauties get me very excited.
0:13:27 > 0:13:29Oh, bit of a stripy pink hallway!
0:13:29 > 0:13:31Now, what I want to see
0:13:31 > 0:13:35is what there is in this lovely little reception room.
0:13:35 > 0:13:38Hmm - bit disappointing. Can't see a ceiling rose.
0:13:38 > 0:13:43Can't see a beautiful, original Victorian fireplace.
0:13:43 > 0:13:44Oh no - something from the '50s!
0:13:44 > 0:13:46No deep skirting board.
0:13:46 > 0:13:50But what there is is a beautiful old Victorian bay window
0:13:50 > 0:13:52with original sashes.
0:13:52 > 0:13:53Now take a look at that!
0:13:53 > 0:13:56I'm sure whoever takes this house on will rip that out
0:13:56 > 0:14:00for something more energy efficient and a lot more economical.
0:14:00 > 0:14:03So - so far, not a BAD start.
0:14:03 > 0:14:07But I want to see some lovely old features. I'm going on a search.
0:14:09 > 0:14:11# Where is the love?
0:14:11 > 0:14:13# Where is the love?
0:14:13 > 0:14:15# Where is the love?
0:14:15 > 0:14:16# Where is the love? #
0:14:16 > 0:14:19There isn't a whole lot of love in this house,
0:14:19 > 0:14:23and that's unfortunate, because I thought there would be plenty.
0:14:23 > 0:14:25A few romantic gestures wouldn't go amiss.
0:14:25 > 0:14:29Now it is an extremely cold day today.
0:14:29 > 0:14:32But something else this house hasn't got - central heating.
0:14:32 > 0:14:34This is the second reception room.
0:14:34 > 0:14:38As you know, I'm one for opening up a space, knocking down a wall.
0:14:38 > 0:14:42But in this instance, I quite like the fact that there are two separate reception rooms.
0:14:42 > 0:14:46So I think I would keep this wall up here, because,
0:14:46 > 0:14:49at the back of this property, you could open this space up here.
0:14:49 > 0:14:50It's the kitchen.
0:14:50 > 0:14:55So you could have a nice kitchen here, a family dining space here.
0:14:55 > 0:14:58Although you are going to need to spend a fair bit of money in here.
0:14:58 > 0:15:01Because I think it was a kitchen in 1950.
0:15:01 > 0:15:05Hmm. There's not a lot going on in here.
0:15:05 > 0:15:08This house is great. It has got a certain amount of character.
0:15:08 > 0:15:11But I'm thinking... it's a money pit.
0:15:11 > 0:15:14# Money, money, money, money
0:15:14 > 0:15:15# Money... #
0:15:15 > 0:15:19It really could end up costing you a lot of cash, this one.
0:15:19 > 0:15:23You'd need a new kitchen, new central heating system, new plaster,
0:15:23 > 0:15:26new electrics, new decor.
0:15:26 > 0:15:27In fact, new everything!
0:15:27 > 0:15:32So upstairs, we've got two bedrooms -
0:15:32 > 0:15:35a nice large one to the front, slightly smaller one to the side.
0:15:35 > 0:15:37And...a really big bathroom!
0:15:37 > 0:15:41Now, I'm walking in here thinking, "This bathroom is a waste.
0:15:41 > 0:15:42"It's far too big."
0:15:42 > 0:15:46Would it be worth trying to reconfigure up here,
0:15:46 > 0:15:50and maybe creating a smaller bathroom over here,
0:15:50 > 0:15:55and calling this little area towards the back with the nice window
0:15:55 > 0:15:57a third bedroom? Would it be worth it?
0:15:57 > 0:15:59You'd get more rental return by doing that.
0:15:59 > 0:16:01I think whoever takes this on
0:16:01 > 0:16:04has really got to think about the layout up here.
0:16:04 > 0:16:07Because it's so important to get it right.
0:16:07 > 0:16:10# Money, money, money, money. #
0:16:10 > 0:16:13Out back, and there's a really nice-sized garden,
0:16:13 > 0:16:14with great access at the rear.
0:16:14 > 0:16:18But there's something that actually sparks much more interest next door.
0:16:18 > 0:16:22You can see that they've benefited from a single-storey extension.
0:16:22 > 0:16:25So maybe the owner of this house could do something similar.
0:16:25 > 0:16:29Some minor renovations are classed as "Permitted Development,"
0:16:29 > 0:16:32meaning you can carry out works without seeking approval.
0:16:35 > 0:16:38Now, this is a terraced house. So the maximum depth
0:16:38 > 0:16:41of a single story rear extension is three metres.
0:16:41 > 0:16:44And the maximum height is four metres.
0:16:44 > 0:16:46That's quite a substantial addition.
0:16:46 > 0:16:49That'd give you a much bigger family kitchen.
0:16:49 > 0:16:50But before you do start work,
0:16:50 > 0:16:53I would check with the local planning office first
0:16:53 > 0:16:57to make sure you are within your permitted development rights.
0:16:59 > 0:17:04A new rear extension would really signal a big change
0:17:04 > 0:17:05for this tired old home.
0:17:05 > 0:17:07Plus, it'd give you a much bigger kitchen -
0:17:07 > 0:17:10something this place is crying out for.
0:17:10 > 0:17:13With a guide price of £90-95,000,
0:17:13 > 0:17:16let's hear what an estate agent makes of this terraced property.
0:17:18 > 0:17:20Well, it needs all the windows replacing,
0:17:20 > 0:17:22central heating putting in,
0:17:22 > 0:17:25new kitchen, new bathroom.
0:17:25 > 0:17:26The plaster work doesn't look bad.
0:17:26 > 0:17:30But of course, when you start removing wallpaper and stuff,
0:17:30 > 0:17:32sometimes there may be some plastering that needs doing.
0:17:32 > 0:17:35Let's talk figures.
0:17:35 > 0:17:39I could put this property on the market, once it was renovated,
0:17:39 > 0:17:42for just under £140,000.
0:17:42 > 0:17:47And hope to achieve in excess of £135,000.
0:17:47 > 0:17:50And, if the new owners managed to turn it into a three-bed?
0:17:50 > 0:17:54Then it would take it up to probably £145,000.
0:17:54 > 0:18:00Maybe even a little bit more. But certainly not over £150,000.
0:18:00 > 0:18:02This is a perfect project
0:18:02 > 0:18:05for somebody who's looking to make this into a home.
0:18:05 > 0:18:11But as an investment property? You'd need to get this for a bargain price at auction.
0:18:11 > 0:18:15It needs a lot of cash spending on it to bring it up to standard.
0:18:15 > 0:18:19Somebody fancied it, though. Let's go to the auction and find out who that was.
0:18:19 > 0:18:23Lot 83, we move to Snodland. Got a guide of 90-95.
0:18:23 > 0:18:25£85,000 to start me?
0:18:25 > 0:18:28Thank you very much. £85,000 is bid.
0:18:28 > 0:18:3088. 88 is bid.
0:18:30 > 0:18:32And 90. 90 I have.
0:18:32 > 0:18:3592 is bid. And 94.
0:18:35 > 0:18:3794. And 96. And 98.
0:18:37 > 0:18:39100. 102. Either of you?
0:18:40 > 0:18:43102 I'm bid. 104.
0:18:43 > 0:18:44104 at the back.
0:18:44 > 0:18:47106 I have. And 108.
0:18:48 > 0:18:49108 is bid.
0:18:49 > 0:18:52110 I have in a fresh place. And 112.
0:18:52 > 0:18:56112 is bid. And 114. And 114 I'm bid.
0:18:56 > 0:19:00At 116 for you now. 116.
0:19:00 > 0:19:04At 116,000, being sold for the first time at 116.
0:19:04 > 0:19:08117, I have. 118 and 119.
0:19:08 > 0:19:10119 is bid. 120?
0:19:10 > 0:19:14120, I'm bid.
0:19:14 > 0:19:20You're both out, 120,000 for the third and final time.
0:19:20 > 0:19:23You wouldn't want to read my mind then.
0:19:23 > 0:19:26No, at 121, 122 I'm bid.
0:19:26 > 0:19:28What are you going to do during the winter?
0:19:28 > 0:19:31You'll have nothing to do if you don't buy today!
0:19:31 > 0:19:33122 at the back of the room. He still says no.
0:19:33 > 0:19:37Being sold for the first time at 122,000.
0:19:37 > 0:19:40Being sold for the second time at 122,000.
0:19:40 > 0:19:43Third and final time at 122,000 - are you all done?
0:19:43 > 0:19:46Sold at 122,000, thank you very much.
0:19:50 > 0:19:53Well, that was one exciting auction for Lynne and Julian.
0:19:53 > 0:19:56The couple purchased this house as an investment.
0:19:56 > 0:19:58Lynne works part-time in communications
0:19:58 > 0:20:02and Julian owns and runs his own picture-framing business.
0:20:02 > 0:20:05I went to meet them at the property to find out their plans.
0:20:08 > 0:20:10Guys, congratulations.
0:20:10 > 0:20:14- I hear somebody got rather excited on auction day.- Did I?
0:20:14 > 0:20:16I thought she might be reining me in
0:20:16 > 0:20:21because we did go over our maximum, but I got encouraged so we got it.
0:20:21 > 0:20:23What was your maximum, Julian?
0:20:23 > 0:20:28Ideally, it would have been 115, but I knew I'd probably have to go to 124
0:20:28 > 0:20:31and we ended up at 122.
0:20:31 > 0:20:35So, a little bit over the absolute maximum, but worth it.
0:20:35 > 0:20:39The couple are as pleased as punch with their new acquisition.
0:20:39 > 0:20:43Ideally, they'd like to turn it around, sell on and make a profit,
0:20:43 > 0:20:49but they're fully aware how tough the sales market is at the moment so will also consider rental.
0:20:49 > 0:20:50What I want to know is,
0:20:50 > 0:20:54how much research did you do into the whole buying of this property?
0:20:54 > 0:21:00The usual background searches of what value we expect to get out of it
0:21:00 > 0:21:03when it's done up, what sort of rental value
0:21:03 > 0:21:05and obviously viewing the property,
0:21:05 > 0:21:09checking it out for its condition for what we expect to spend on it.
0:21:09 > 0:21:12It is an investment, so it's got to work for us.
0:21:12 > 0:21:16Lynne, did you get a chance to come and have a look around the property before?
0:21:16 > 0:21:17I didn't actually.
0:21:17 > 0:21:21Unfortunately, I was unavailable when the viewings were taking place,
0:21:21 > 0:21:25but I just loved the outside and I loved the road and I thought,
0:21:25 > 0:21:30"This is going to be a nice place to do up and for someone to live in."
0:21:30 > 0:21:35However, Julian did view the property before the auction so I won't be ticking Lynne off today.
0:21:35 > 0:21:39You do know how I feel about people buying property without seeing it first.
0:21:39 > 0:21:42It's an incredibly risky way to purchase.
0:21:42 > 0:21:47"Forewarned is to be forearmed", viewers, and it could be financial suicide if you don't.
0:21:53 > 0:21:56What about the fact that you've got a huge bathroom upstairs?
0:21:56 > 0:21:59I walk in there and think, "This should be a bedroom."
0:21:59 > 0:22:04Do you think there's anything there that you could tweak or play with?
0:22:04 > 0:22:08Not really, because we've got to find room to put the boiler in.
0:22:08 > 0:22:13Probably leave it as two bedrooms, as it is currently laid out
0:22:13 > 0:22:16with the two bedrooms and bathroom upstairs.
0:22:16 > 0:22:22But knocking through the wall here so that the two rooms downstairs become one.
0:22:22 > 0:22:25It's interesting that you'll be taking that wall out there
0:22:25 > 0:22:30because I am assuming that you'll be opening this space up here as well?
0:22:30 > 0:22:34No, we'll leave that separate so it will be a separate kitchen
0:22:34 > 0:22:39and then make it a through living room, the two front rooms.
0:22:39 > 0:22:41I would have seen this as a kitchen diner
0:22:41 > 0:22:43and a separate living room
0:22:43 > 0:22:46so you could have one big family space here,
0:22:46 > 0:22:50leaving that wall up there to have a nice quiet living room at the front of the property.
0:22:50 > 0:22:54It's a possibility, I hadn't thought of it that way.
0:22:54 > 0:22:57- Have you ever done anything like this before?- Yes, I have.
0:22:57 > 0:23:02The house we currently live in, we extended and completely remodelled.
0:23:02 > 0:23:05It went from a three bedroom to a six-bedroom house.
0:23:05 > 0:23:08How long did it take you to complete the work on your own house?
0:23:08 > 0:23:11It took us a year before we could actually move in
0:23:11 > 0:23:16and then it's taken another year and a bit to get it almost finished.
0:23:16 > 0:23:20- 2.5 years. You haven't got that long for this property, OK?- OK.
0:23:20 > 0:23:22You got to be quicker than that.
0:23:22 > 0:23:27So, how much money have you got to spend on this place? What is your realistic budget?
0:23:27 > 0:23:30It's between £11,000 and £15,000.
0:23:30 > 0:23:32It would be nice to keep it down to 11,
0:23:32 > 0:23:35but when we start talking about knocking walls down, it could go up
0:23:35 > 0:23:38and we are talking about moving doors and windows as well.
0:23:38 > 0:23:41So it might go up to 15.
0:23:41 > 0:23:43What do you think your timescale will be?
0:23:43 > 0:23:47We're planning three months - for doing it myself.
0:23:47 > 0:23:51If we got an army of people in, we could do it quicker, but it's going to be my occupation.
0:23:51 > 0:23:57Let's hope Julian doesn't take 2.5 years renovating this house!
0:23:57 > 0:23:59He's given himself three months to do it
0:23:59 > 0:24:02and he seems intent on keeping to that.
0:24:02 > 0:24:04Will they create that third bedroom
0:24:04 > 0:24:07or will Lynne get her airing cupboard?
0:24:07 > 0:24:10You can find out how they get on later in the programme.
0:24:11 > 0:24:14Coming up... In Warrington, I step back in time
0:24:14 > 0:24:17with an old friend and a new property.
0:24:17 > 0:24:20- It's seven years ago that we last met you.- That's right.
0:24:21 > 0:24:25In Kent, this unloved house finds romance.
0:24:25 > 0:24:27Well, I like it so much I'd like to move in!
0:24:27 > 0:24:31You know, it is starting to look good.
0:24:32 > 0:24:35First, we track down that Ilkeston building site
0:24:35 > 0:24:37to see how Tom got on with the planners.
0:24:37 > 0:24:41Possibly a little ambitious, when we look back over what we've achieved.
0:24:43 > 0:24:48We're back in Ilkeston near Derby, to see if quantity surveyor and builder Tom
0:24:48 > 0:24:51managed to turn a townhouse-come-building-site
0:24:51 > 0:24:54into two flats, or even three.
0:24:57 > 0:25:00This property was full of...
0:25:00 > 0:25:02I suppose you'd have to say "potential".
0:25:02 > 0:25:07It had a very big holes, half-built walls and abandoned power tools.
0:25:07 > 0:25:09But there was no planning permission
0:25:09 > 0:25:12to make the most of those three floors.
0:25:12 > 0:25:14The planning could be an issue,
0:25:14 > 0:25:17although there are several properties in the adjoining area
0:25:17 > 0:25:20that have got planning for three apartments or flats.
0:25:20 > 0:25:23It's a risk, though, isn't it?
0:25:23 > 0:25:24It is a risk, but anything's a risk.
0:25:24 > 0:25:28You need to calculate it and what the benefits are in the returns.
0:25:32 > 0:25:36Tom bought this three-storey townhouse when it was being rebuilt.
0:25:36 > 0:25:40He paid £70,000, and planned to complete the renovation work for £60,000.
0:25:41 > 0:25:44He estimated it would take him six months in total.
0:25:48 > 0:25:50Well, doesn't time fly?
0:25:50 > 0:25:53We've come back a whopping two years later
0:25:53 > 0:25:56to see if Tom has three flats, or two,
0:25:56 > 0:25:58or a bigger building site.
0:26:06 > 0:26:09Tom has turned an abandoned building site
0:26:09 > 0:26:11into three bright, self-contained flats.
0:26:18 > 0:26:21He got planning approval to make each floor a separate flat,
0:26:21 > 0:26:23and built a rear extension
0:26:23 > 0:26:27to make the top two flats an equal size.
0:26:28 > 0:26:30He now has two one-bedroom flats -
0:26:30 > 0:26:33there's one on the first, and one on the second floor -
0:26:35 > 0:26:38and a two-bedroom flat on the ground floor.
0:26:41 > 0:26:45The original timescale was about six months, which was a little ambitious,
0:26:45 > 0:26:49when we look back over what we've done and achieved.
0:26:49 > 0:26:53The house has been completely refurbished, from top to bottom.
0:26:53 > 0:26:56Originally, there were cellars, which have been in-filled.
0:26:56 > 0:26:59The concrete floors have been installed,
0:26:59 > 0:27:01new foundations for the staircase.
0:27:01 > 0:27:05I think there was around 2,000 concrete blocks installed there.
0:27:05 > 0:27:09Spoken like a true quantity surveyor!
0:27:09 > 0:27:13Tom was able to draw on his years of experience as a builder and surveyor
0:27:13 > 0:27:18when it came to making the planning application as strong as possible.
0:27:18 > 0:27:23The original building is very much as it was, apart from the extension.
0:27:23 > 0:27:27We've left the window openings and the door positions as they were,
0:27:27 > 0:27:31to ease the planning application. It went straight through,
0:27:31 > 0:27:33and we've worked the rooms around the windows
0:27:33 > 0:27:36and the openings we already had.
0:27:36 > 0:27:39And that actually worked quite well in the end.
0:27:39 > 0:27:44Pretty smart, huh? Having the imagination to work around what a building already has
0:27:44 > 0:27:46can save you time and money.
0:27:46 > 0:27:49If I cast us mind back to two years ago,
0:27:49 > 0:27:51this was a big, open cellar at that time.
0:27:51 > 0:27:55We've dismantled the chimneys, put them into the cellars, in-filled, compacted,
0:27:55 > 0:27:59laid concrete on top with insulation to current building regulations.
0:27:59 > 0:28:03And now we have a suitable floor for the carpets to be applied to.
0:28:03 > 0:28:07Tom wanted the two flats upstairs to share their own separate entrance
0:28:07 > 0:28:10so he squeezed in a staircase.
0:28:10 > 0:28:16The staircase we had to design to make it as small as possible so we could enhance the area
0:28:16 > 0:28:21of each flat and it made it really quite tight although we have come up with a design which is suitable
0:28:21 > 0:28:25and again works quite well to access both the first and second floors.
0:28:25 > 0:28:28The flats on the first and second floors are identical.
0:28:28 > 0:28:32They have a good size living room with a short corridor
0:28:32 > 0:28:34off to a galley kitchen.
0:28:34 > 0:28:40There's one decent-size double bedroom and well-designed shower room and toilet.
0:28:40 > 0:28:45This is the second floor of the building where we have the second floor extension.
0:28:46 > 0:28:49It consists of, on the right, the bathroom,
0:28:49 > 0:28:53which has the shower room, a WC and a sink with a tiled floor.
0:28:53 > 0:28:56The extension consists of around 1,000 blocks.
0:28:56 > 0:29:01and is externally rendered in a white render with a uPVC window to the side.
0:29:01 > 0:29:05Well, it took two years, but has Tom done enough to this
0:29:05 > 0:29:08former townhouse to attract attention?
0:29:08 > 0:29:11We asked two local property experts their opinions.
0:29:12 > 0:29:15I think he's done a fabulous job.
0:29:15 > 0:29:17The use of space, I think, works very well.
0:29:17 > 0:29:21Certainly privacy, it's nice that downstairs has a separate entrance
0:29:21 > 0:29:23and off-street parking, which is a bonus.
0:29:23 > 0:29:26Demand would be for the rental market.
0:29:26 > 0:29:30The decor is finished to a pretty high standard for three small flats.
0:29:30 > 0:29:33I'm pretty impressed with the finish.
0:29:33 > 0:29:37I see young professionals living in these properties.
0:29:37 > 0:29:39They're the perfect first home.
0:29:40 > 0:29:44Tom bought the entire property for 70,000 and completed
0:29:44 > 0:29:50the renovation work for 60,000, bringing his total outlay to 130,000.
0:29:50 > 0:29:54Time to hear how much they think the building could sell for.
0:29:54 > 0:29:58In the present market I would anticipate probably
0:29:58 > 0:30:01a suggested asking price of around £45-50,000
0:30:01 > 0:30:05for the one-bedroom flats and for the two-bedroom flat
0:30:05 > 0:30:10I'd probably expect a suggested asking price of around £55,000.
0:30:10 > 0:30:16The ground floor flats should achieve between £55-60,000.
0:30:16 > 0:30:20The one-bedroom flats should achieve between £40-50,000.
0:30:20 > 0:30:25Those valuations add up to between £135-160,000
0:30:25 > 0:30:31and would mean a profit of between £5-25,000 before costs and expenses.
0:30:33 > 0:30:38Sale value I've not considered too much because ultimately, I do want to let them
0:30:38 > 0:30:40although it's something I'd expect to hear.
0:30:40 > 0:30:44No surprises there. Both property experts agree
0:30:44 > 0:30:49with Tom that rental's the way to go for the short to medium term.
0:30:49 > 0:30:53I'd expect around £400 per-calendar- month for the one-bedroom flats
0:30:53 > 0:30:57and for the two-bedroom flat I would probably expect around 425.
0:30:57 > 0:31:02The ground floor should be achieving around the £400 per-calendar-month mark.
0:31:02 > 0:31:06The first and second floor flats should achieve 350,
0:31:06 > 0:31:09maybe £375 per-calendar-month.
0:31:09 > 0:31:14The long-term future for this property and to suit my needs is to let it out.
0:31:14 > 0:31:17I'm happy with the returns at around £400 for each property,
0:31:17 > 0:31:19That's the way we will go.
0:31:19 > 0:31:22So local developer Tom knew what he was doing
0:31:22 > 0:31:24when he took the risk on this place
0:31:24 > 0:31:26and it turned out pretty well for him.
0:31:27 > 0:31:30I think auctions are the way forward, to be honest.
0:31:30 > 0:31:33We seem to be able to buy property at the right price,
0:31:33 > 0:31:37which enables us to have money to regenerate them
0:31:37 > 0:31:40to a suitable standard for either resale or for letting.
0:31:42 > 0:31:45# I got 'em all buzzin' buzzin', buzzin', buzzin'
0:31:45 > 0:31:47# Like da-da-da-da-da-da-da. #
0:31:47 > 0:31:50I'm in Warrington, 16 miles east of Liverpool
0:31:50 > 0:31:56and 19 miles west of Manchester so useful proximity to two major cities.
0:31:56 > 0:32:00And with a buzzing town centre and historical architecture,
0:32:00 > 0:32:03it provides a pleasant alternative to its more urban neighbours.
0:32:03 > 0:32:06# I got 'em all buzzin' buzzin', buzzin', buzzin'
0:32:06 > 0:32:08# Like da-da-da-da-da-da-da
0:32:08 > 0:32:10# Man, I got the world buzzin'. #
0:32:10 > 0:32:13The property I'm here to see is in an area known as Bewsey,
0:32:13 > 0:32:15one of the more affordable parts of Warrington.
0:32:15 > 0:32:18Lots of development here over the last ten years
0:32:18 > 0:32:22but the house that was up for auction was probably built a lot before that.
0:32:22 > 0:32:26It's this three-bed end-of-terrace. Had a guide price of £55,000.
0:32:26 > 0:32:29Doesn't look bad from the outside, let's take a look inside.
0:32:34 > 0:32:39Positioned at the end of a cul-de-sac means that one great attraction
0:32:39 > 0:32:42of this place is it will be nice and quiet and peaceful.
0:32:45 > 0:32:49So what have we got? Well, nice open-plan layout down here for sure.
0:32:49 > 0:32:53Stairs up to the bedrooms there and this is your sitting room.
0:32:53 > 0:32:56Somebody's obviously tarted it up at some point,
0:32:56 > 0:32:58we have a nice, modern-looking fire
0:32:58 > 0:33:00and laminate flooring doesn't make it look too bad.
0:33:00 > 0:33:03Through this large double doorway into your kitchen.
0:33:03 > 0:33:06Again, it's perfectly serviceable. Fairly modern,
0:33:06 > 0:33:08It's not the highest quality,
0:33:08 > 0:33:13but actually as a starting point, a few white goods in here
0:33:13 > 0:33:15and you could be renting this place out. Ooh!
0:33:24 > 0:33:29Bewsey is a popular place to live, which means it's a good place for property investors.
0:33:29 > 0:33:32It's the perfect place to pick up a buy-to-let
0:33:32 > 0:33:36so with a guide price of 55,000, I'm starting to think this place
0:33:36 > 0:33:38has the potential to be a nice little earner.
0:33:40 > 0:33:46So upstairs, any big surprises? Well, no, actually. Only good ones.
0:33:46 > 0:33:49Three bedrooms, two reasonable size doubles and a box room,
0:33:49 > 0:33:54but from a letting point of view, still got three rooms, good news. And then the bathroom.
0:33:54 > 0:33:59With a bit of tarting up, in fact not much at all, that's perfectly serviceable.
0:33:59 > 0:34:04So all in all, internally, wow! Ready to rock and roll.
0:34:09 > 0:34:13Now, you might like a riot of colour in your house,
0:34:13 > 0:34:18but others won't share your taste. If you're planning to rent or sell,
0:34:18 > 0:34:21then tone it down is always the best advice.
0:34:22 > 0:34:25So out the back through the really nice double patio doors there
0:34:25 > 0:34:28into the garden and it's a good-sized space.
0:34:28 > 0:34:31One of the benefits of being on the end, a nice-size corner plot.
0:34:31 > 0:34:34The garden's in need of tender loving care.
0:34:34 > 0:34:36These fence panels have blown down.
0:34:36 > 0:34:40Now, you should spend a bit of time getting this sorted.
0:34:40 > 0:34:45You may be able to use these again, but a fence panel like that will cost £20.
0:34:45 > 0:34:51For the sake of an argument with your neighbour, put new ones in, start things off on a good footing.
0:34:51 > 0:34:54The only negative out here which I've just noticed
0:34:54 > 0:34:59is that that is a mainline railway so if you're a trainspotter, excellent.
0:34:59 > 0:35:03If you want complete peace and quiet, hmm, better look somewhere else.
0:35:08 > 0:35:12With the double-glazing in reasonably good condition, you might get away with it.
0:35:12 > 0:35:17Just a tip, though. If you're viewing a property with a potential noise hazard,
0:35:17 > 0:35:21wait until a train or plane comes along before you make your decision.
0:35:21 > 0:35:25Then you can decide if it's something you could live with.
0:35:25 > 0:35:28It's time to find out if a local estate agent thinks this property
0:35:28 > 0:35:32was worth its £55,000 guide price.
0:35:32 > 0:35:35Bewsey is a popular area with first-time buyers
0:35:35 > 0:35:39and some investors looking to expand their portfolio.
0:35:39 > 0:35:41There's good links to motorways.
0:35:41 > 0:35:44You can walk to Warrington town centre from here
0:35:44 > 0:35:46and there's also good train links from the area.
0:35:48 > 0:35:51The railway may put some potential buyers off.
0:35:51 > 0:35:52It's not a busy line,
0:35:52 > 0:35:56but some people would discount the property on that basis.
0:35:56 > 0:35:58Having said that, it is on a quiet road
0:35:58 > 0:36:02and I think most people would take that over having houses
0:36:02 > 0:36:05looking in or any sort of major, busy road behind the property.
0:36:05 > 0:36:10Once renovated, what does the estate agent think it could be worth?
0:36:10 > 0:36:16Once renovated the property would achieve somewhere in the region of £80-82,000.
0:36:16 > 0:36:20It would rent for around £425 per-calendar-month.
0:36:23 > 0:36:27Well, what can you say? This house really does have a lot going for it.
0:36:27 > 0:36:29Not much work to do,
0:36:29 > 0:36:32you could either move in or rent it out pretty much as it is.
0:36:32 > 0:36:36A big bonus and for that guide price, a great one to go for.
0:36:36 > 0:36:39Let's see who fancied it when it went under the hammer.
0:36:39 > 0:36:42So we move on to lot 167.
0:36:42 > 0:36:46Three-bedroom end-terrace house, vacant possession, big property.
0:36:46 > 0:36:51Asking you for £30,000. Someone give me 30 for it? 30, here.
0:36:51 > 0:36:54Got 30, here. Looking for 35. 35, there.
0:36:54 > 0:37:0040, 45. 45 now? 50, sir? 55?
0:37:00 > 0:37:0256? 56, I'll take.
0:37:02 > 0:37:08I'm looking for 57. Gentlemen furthest away from me at £57,000.
0:37:08 > 0:37:1358, sir. 59? 60? 61, 62?
0:37:13 > 0:37:17Are you coming in at 62? You are doing.
0:37:17 > 0:37:2363, then. It's you, sir. 63 here, he's back. 64? 64.5.
0:37:23 > 0:37:2765, sir? 65.5.
0:37:27 > 0:37:29Big shake of the head.
0:37:29 > 0:37:33Are we all finished? I'm going to sell at £65,000 for the first time,
0:37:33 > 0:37:4065.5 next to you. 66 to you, sir? 66.5?
0:37:40 > 0:37:44No? Shaking his head. Back with you at 66, sir, for the first time,
0:37:44 > 0:37:46second time at £66,000. Are we done?
0:37:46 > 0:37:47GAVEL BANGS
0:37:47 > 0:37:50Sold to you, sir. Paddle number 144, well done.
0:37:52 > 0:37:55The new owner of the house isn't any stranger to property
0:37:55 > 0:37:57or to the show.
0:37:57 > 0:37:58# Baby, come back
0:37:58 > 0:38:00- # Come back, baby - Yeah!- #
0:38:00 > 0:38:03Lucy met Adrian seven years ago,
0:38:03 > 0:38:07when he purchased a three-bedroom mid-terrace house in Wallasey.
0:38:07 > 0:38:09Well, Adrian, the kitchen,
0:38:09 > 0:38:12- one of the many rooms that needs a bit of cosmetic attention.- Yes!
0:38:12 > 0:38:17- Just a tad(!) And your budget is...? - In the region of 6,000.
0:38:17 > 0:38:19- For the whole house?- Yes.
0:38:19 > 0:38:23And with that budget of only £6,000, Adrian turned an abandoned
0:38:23 > 0:38:27and vandalised house into a light and clean home.
0:38:27 > 0:38:30I caught up with him to see how the property market
0:38:30 > 0:38:34has been treating him during the last seven years.
0:38:34 > 0:38:37- Adrian, good to meet you. Welcome back to the show.- Thank you.
0:38:37 > 0:38:39- You had Lucy time last time, I believe?- Yes.
0:38:39 > 0:38:43- It's seven years ago that we last met you.- That's right.
0:38:43 > 0:38:46- Buying properties on the Wirral.- Yes. - How's it gone in those seven years?
0:38:46 > 0:38:50It's gone very well, Martin, yes. We've expanded the business, more new clients.
0:38:50 > 0:38:53It's been tough times in the property world in general.
0:38:53 > 0:38:56- At the start of the period, all quite buoyant.- Yes.
0:38:56 > 0:38:58In the latter stages, a little bit not.
0:38:58 > 0:39:00There was a quieter period in the middle.
0:39:00 > 0:39:05Lately, it's been very good for us with the drop in the prices and the rental demand,
0:39:05 > 0:39:07so it's been very good lately.
0:39:07 > 0:39:08Remind me what you do.
0:39:08 > 0:39:12We source properties on behalf of clients and investors.
0:39:12 > 0:39:15We'll source them, offer the package to them,
0:39:15 > 0:39:18explain the refurbishment costs, then we do the rental for them, we manage it.
0:39:18 > 0:39:21It's basically the whole package.
0:39:21 > 0:39:24Adrian's been buying for others for over seven years now
0:39:24 > 0:39:29and since his first appearance on Homes Under The Hammer, his business has grown.
0:39:30 > 0:39:35- Tell me why you wanted to buy this place.- Basically a good, solid house.
0:39:35 > 0:39:39Good, solid investment. Nice three-bedroom, good-size gardens.
0:39:39 > 0:39:41Not too much to do to it, basic refurbishment.
0:39:41 > 0:39:44Good, solid family house that should rent very well.
0:39:44 > 0:39:47In terms of what needs to be done to it, you might not like the colours.
0:39:47 > 0:39:50Once we change them, strip the wallpaper,
0:39:50 > 0:39:52get rid of the woodchip for a start upstairs.
0:39:52 > 0:39:55New carpets, new decor from top to bottom.
0:39:55 > 0:39:58We will take down the shed outside, which is a bit of an eyesore,
0:39:58 > 0:40:01it's rotting, so that will go away and we'll extend the patio area.
0:40:01 > 0:40:07- New fencing. The exterior will be done. So...- What about the kitchen?
0:40:07 > 0:40:10The kitchen can stay. A good, solid kitchen. Nice and modern.
0:40:10 > 0:40:12Same as the bathroom. Good, modern suite.
0:40:12 > 0:40:15- So nothing too dramatic at all, really?- No, no, basic.
0:40:15 > 0:40:17What kind of costs have you got aside?
0:40:17 > 0:40:21For this one, we're looking at between 2,500-3,000 for the budget.
0:40:21 > 0:40:25- And timescales?- This will be done in three to four weeks.
0:40:26 > 0:40:29I get the feeling that nothing can go wrong with this place.
0:40:29 > 0:40:34It's such a straightforward job but is it sound financially?
0:40:34 > 0:40:35Very happy with what we paid.
0:40:35 > 0:40:38Originally at their peak, these houses were fetching
0:40:38 > 0:40:41110, 115,000, so very good value.
0:40:41 > 0:40:44Certainly at the price you paid. Would you have gone a bit higher?
0:40:44 > 0:40:50Maximum, 70,000 we had so we were very happy it came under that.
0:40:51 > 0:40:55By managing all the work required to buy, renovate then rent or sell
0:40:55 > 0:40:58on behalf of investors, Adrian has created a business,
0:40:58 > 0:41:02which is continuing to do well despite the current market difficulties.
0:41:02 > 0:41:04What were you doing before this?
0:41:04 > 0:41:09- I was an antiques dealer, Martin, for 17 years.- Wow!
0:41:09 > 0:41:11What made the move from antiques to property?
0:41:11 > 0:41:14The antiques business was going down worldwide.
0:41:14 > 0:41:16There was a depression in that market,
0:41:16 > 0:41:18so I looked for something else to get into.
0:41:18 > 0:41:20I've always been interested in property,
0:41:20 > 0:41:24it's always taken my eye so that was a good opportunity to get into that market.
0:41:24 > 0:41:28But when you were doing antiques, presumably you did auctions as well?
0:41:28 > 0:41:33Yes, so I have lots of experience, 20-plus years' experience at auctions.
0:41:33 > 0:41:36Is there much difference between antique and property auctions?
0:41:36 > 0:41:37Not really, no.
0:41:37 > 0:41:41It's a slower auction but they're selling more expensive pieces.
0:41:41 > 0:41:44Obviously more expensive products but very, very similar.
0:41:44 > 0:41:48- Congratulations.- Thank you. - Looking forward to seeing how you get on.- Thank you.
0:41:50 > 0:41:52Well, I wonder what the next seven years
0:41:52 > 0:41:55have in store for the property market.
0:41:55 > 0:41:57Lots of ups and downs, I'm sure.
0:41:57 > 0:42:00For now, Adrian has got himself a good buy with this place.
0:42:00 > 0:42:03He's not going to spend too much money sorting it out.
0:42:03 > 0:42:05I'm sure he'll do just fine.
0:42:05 > 0:42:07You can find out how it turns out later in the show.
0:42:10 > 0:42:13Well, the clock has been ticking
0:42:13 > 0:42:16and work should have started on our properties.
0:42:16 > 0:42:19Have those piles of bricks and bags of cement gone?
0:42:19 > 0:42:23- Will the paint be dry on the walls? - Let's go back and find out.
0:42:24 > 0:42:28We're back in Snodland, Kent, to find how Julian and Lynn
0:42:28 > 0:42:31got on with their two-bedroom mid-terrace house.
0:42:31 > 0:42:34It had certainly been unloved for a long time
0:42:34 > 0:42:37but that meant there were some enticing opportunities to improve it
0:42:37 > 0:42:41and some even bigger opportunities to spend a lot of cash.
0:42:41 > 0:42:45I had some thoughts on what to knock down
0:42:45 > 0:42:47but then so did Julian and Lynn.
0:42:47 > 0:42:50What about the fact you've got a huge bathroom upstairs?
0:42:50 > 0:42:53I walk into it and think "this should be a bedroom".
0:42:53 > 0:42:56Is there anything there you could tweak or play with?
0:42:56 > 0:42:58Probably leave it as two bedrooms.
0:42:58 > 0:43:00Principally leaving it as it is currently laid out,
0:43:00 > 0:43:03with the two bedrooms and bathroom upstairs
0:43:03 > 0:43:05but knocking through the wall here.
0:43:05 > 0:43:09So the two rooms downstairs become one.
0:43:09 > 0:43:10# Where is the love?
0:43:10 > 0:43:12# Where is the love?... #
0:43:12 > 0:43:17Julian and Lynn bought this semi-detached house for 122,000.
0:43:17 > 0:43:21They had a budget of £11-15,000 set aside for the refurbishment.
0:43:21 > 0:43:25Although their last house took two and a half years to redesign,
0:43:25 > 0:43:29they were confident they could fix this one in three months.
0:43:31 > 0:43:36Well, we gave them a little extra time and came back six months later
0:43:36 > 0:43:40to see what walls are still standing and how many bedrooms there are now.
0:43:41 > 0:43:44# Only want to make things right
0:43:45 > 0:43:50# Well, I only want to make things right... #
0:43:50 > 0:43:54Julian and Lynn have transformed this neglected, old mid-terrace
0:43:54 > 0:43:58into a really lovely family home.
0:43:58 > 0:44:02# Only want to make things right... #
0:44:02 > 0:44:05The bijou kitchenette is now a workable kitchen
0:44:05 > 0:44:09with good access to the dining room through a much bigger doorway.
0:44:09 > 0:44:11Although there are some finishing touches to add -
0:44:11 > 0:44:14they still need a banister on this open staircase -
0:44:14 > 0:44:17the construction side of the project is complete.
0:44:17 > 0:44:20They kept the wall between the front sitting room
0:44:20 > 0:44:23and the dining room, giving them two downstairs spaces.
0:44:23 > 0:44:26But this house had been hiding one or two major problems
0:44:26 > 0:44:31and it became a whole lot more work than it first appeared.
0:44:31 > 0:44:34We had to get rid of 40 years of neglect, basically.
0:44:34 > 0:44:39So we've done central heating, new windows, new kitchen,
0:44:39 > 0:44:43bathroom and we've created a third bedroom as well.
0:44:43 > 0:44:46Of course, all the electrics and plumbing,
0:44:46 > 0:44:48all the first fit had to be done
0:44:48 > 0:44:50because there literally was nothing in here.
0:44:50 > 0:44:55So we took it down to pretty much a brick shell with a roof on it
0:44:55 > 0:44:56and started again.
0:44:56 > 0:45:00So apart from what you can obviously see - it's all been replastered and repainted,
0:45:00 > 0:45:05we've had work to do with the floors, under the floors.
0:45:05 > 0:45:10There is no one major thing that caused us an issue.
0:45:10 > 0:45:12It's just the collection of everything.
0:45:12 > 0:45:14- It was just the neglect.- Yeah.
0:45:14 > 0:45:18- A very unloved house, it was. - Oh, completely.
0:45:18 > 0:45:22We hope we've transformed it into something that someone else is going to love
0:45:22 > 0:45:24as much as we do.
0:45:24 > 0:45:28# Only want to make things right... #
0:45:28 > 0:45:33Apart from taking all of the walls down from the hallway
0:45:33 > 0:45:36right through, past the staircase here,
0:45:36 > 0:45:40we also decided to open up the dining room to the kitchen
0:45:40 > 0:45:42to make it into a complete kitchen-diner.
0:45:42 > 0:45:46Obviously, it's been completely refitted with a new kitchen.
0:45:46 > 0:45:49We've got to finish it with all the doors, et cetera.
0:45:49 > 0:45:53We think it now makes a much nicer environment as a kitchen/diner
0:45:53 > 0:45:56rather than small, separate rooms.
0:45:56 > 0:45:58Upstairs, as you may remember,
0:45:58 > 0:46:00I thought the bathroom was oversized.
0:46:00 > 0:46:02Well, just as I suggested,
0:46:02 > 0:46:05that huge room was turned into a third bedroom.
0:46:06 > 0:46:08And they divided up the rear bedroom
0:46:08 > 0:46:11to make one small bedroom and a bathroom.
0:46:11 > 0:46:17You may remember that in this room, we had the bathroom originally.
0:46:17 > 0:46:19So, quite a large room for the bathroom.
0:46:19 > 0:46:21And then just one bedroom over here.
0:46:21 > 0:46:24So we decided to move the bathroom over here
0:46:24 > 0:46:29and subdivide the room to create a small bedroom and the bathroom.
0:46:29 > 0:46:34That meant taking all of these walls down and rebuilding them
0:46:34 > 0:46:36to create those two rooms.
0:46:36 > 0:46:38We're very pleased with the result.
0:46:38 > 0:46:40# The mo-mo-mo, the money
0:46:40 > 0:46:42# Mo-mo-mo, the money... #
0:46:42 > 0:46:44So many walls coming and going.
0:46:44 > 0:46:46Did Julian and Lynn manage to stay
0:46:46 > 0:46:50within their original £11-15,000 budget?
0:46:51 > 0:46:54We're around the 15 mark, we haven't got a lot more to spend.
0:46:54 > 0:46:56Despite the fact it's not finished,
0:46:56 > 0:46:59we've got all the materials to finish it.
0:46:59 > 0:47:02And of course, although it may take a bit longer,
0:47:02 > 0:47:04you can save a lot of money
0:47:04 > 0:47:06if you're willing to get your own hands dirty.
0:47:06 > 0:47:09When I was thinking about the schedule,
0:47:09 > 0:47:12I did think we'd have other people in to help with the work.
0:47:12 > 0:47:15But as I got into it, I started to do it all myself.
0:47:15 > 0:47:17'There's still the outside to do.
0:47:17 > 0:47:19'We've got to do some work on the front
0:47:19 > 0:47:21'and paint the outside at the back.
0:47:21 > 0:47:23'If we're lucky, we'll get it done in a month.
0:47:23 > 0:47:27'There was one point - we'd got the kitchen almost up to completion,'
0:47:27 > 0:47:30and I said, "I like it so much, I'd like to move in."
0:47:30 > 0:47:32You know, it is starting to look good.
0:47:32 > 0:47:36It's time to call in two local property experts,
0:47:36 > 0:47:39to see if they see the love too.
0:47:40 > 0:47:43I think they've done a very good job of the renovation.
0:47:43 > 0:47:46I think it's a good family home, three good bedrooms,
0:47:46 > 0:47:48nice bathroom, quality fittings.
0:47:48 > 0:47:50Generally, a very good standard.
0:47:50 > 0:47:53I think what they've done is really, very, very nice.
0:47:53 > 0:47:56They've created three bedrooms, which is what this property needed.
0:47:56 > 0:47:59The whole property is really very, very nice.
0:48:01 > 0:48:05Julian and Lynn bought the house for 122,000.
0:48:05 > 0:48:08They spent £15,000 on the refurbishment,
0:48:08 > 0:48:12bringing their total outlay to 137,000.
0:48:12 > 0:48:15What do the estate agents think the property is worth now?
0:48:17 > 0:48:19I think when the property is completed,
0:48:19 > 0:48:24I think they'll probably be able to achieve around about £150,000.
0:48:24 > 0:48:27They might be looking at marketing it in the region of £150,000
0:48:27 > 0:48:29to £155,000.
0:48:29 > 0:48:33If the house was sold, it could make a profit of between
0:48:33 > 0:48:38£13,000 and £18,000, before tax and selling costs.
0:48:38 > 0:48:40Sounds a touch on the low side.
0:48:40 > 0:48:45Because we've had experience of buying other property on this road,
0:48:45 > 0:48:49just very recently, so I'd expect we'd get a bit more than that.
0:48:51 > 0:48:54But Julian and Lynn are keen to rent it out,
0:48:54 > 0:48:56so what could they get for that?
0:48:56 > 0:48:58This property would rent very well.
0:48:58 > 0:49:01I'd think that they're going to be looking at getting
0:49:01 > 0:49:04somewhere around about £725 per calendar month
0:49:04 > 0:49:07to about £750 per calendar month.
0:49:07 > 0:49:09I think if they were to let this property,
0:49:09 > 0:49:13they'd achieve around £750 per calendar month.
0:49:13 > 0:49:16750 is absolutely spot on.
0:49:16 > 0:49:20Again, we know these houses rent out at 750 at the moment.
0:49:20 > 0:49:22Rental values are good at the moment
0:49:22 > 0:49:25so that's what we're going to do, perhaps for the next five years.
0:49:25 > 0:49:29Well, Julian and Lynn made exactly the right decisions
0:49:29 > 0:49:32when they renovated this house, but as this was their first auction,
0:49:32 > 0:49:36the question is, will they be repeating it?
0:49:36 > 0:49:40I don't want to take on one that needed quite so much doing to it.
0:49:40 > 0:49:43It's been a labour of love,
0:49:43 > 0:49:46I've enjoyed it and I love the result, so...
0:49:46 > 0:49:49But...not quite such hard work.
0:49:49 > 0:49:52Something that's a little less intensive would be good,
0:49:52 > 0:49:55that needs a quicker makeover,
0:49:55 > 0:49:58rather than getting down to the bare bones of a building
0:49:58 > 0:50:00would be more preferable, yeah.
0:50:03 > 0:50:05We're back on the outskirts of Warrington
0:50:05 > 0:50:08to see how Adrian got on with this end-of-terrace
0:50:08 > 0:50:10in a nearly quiet cul-de-sac.
0:50:10 > 0:50:14The house had gone a teeny bit colour crazy,
0:50:14 > 0:50:16so we returned to see if there was a golden property
0:50:16 > 0:50:19hiding underneath that rainbow.
0:50:19 > 0:50:22Ex-antique dealer Adrian now buys, refurbishes
0:50:22 > 0:50:25and manages properties for a number of investors.
0:50:25 > 0:50:29He keeps a close eye on the market and knew a bargain when he saw one.
0:50:29 > 0:50:32He snapped up this house for only 66,000 quid.
0:50:32 > 0:50:34Very happy with what we paid.
0:50:34 > 0:50:38Originally, the peak of these houses were fetching 110, 115,000.
0:50:38 > 0:50:39So very good value.
0:50:40 > 0:50:43With a refurbishment budget of 2,000 to 3,000,
0:50:43 > 0:50:46this would have to be a tightly-run development
0:50:46 > 0:50:48to stay on time and on budget.
0:50:48 > 0:50:53The trick would be to know what to leave and what to change.
0:50:54 > 0:50:56We've come back two months later
0:50:56 > 0:51:00to see if things have calmed down on the technicolour interior.
0:51:00 > 0:51:01# And if this ain't love
0:51:01 > 0:51:03# Why does it feel now
0:51:03 > 0:51:05# Why does it feel now
0:51:05 > 0:51:08# Why does it feel now
0:51:08 > 0:51:11# Why does it feel so good? #
0:51:13 > 0:51:16Those multi-coloured rooms have been neutralised
0:51:16 > 0:51:19with a palette of bright natural tones.
0:51:19 > 0:51:22The house is now much more tenant-friendly,
0:51:22 > 0:51:26offering a well-proportioned family home in a great location.
0:51:32 > 0:51:34Since you were last here,
0:51:34 > 0:51:36we've decorated the house from top to bottom.
0:51:36 > 0:51:41The kitchen, a general decoration, we've made it nice and neutral.
0:51:41 > 0:51:42It was bright orange, the walls.
0:51:42 > 0:51:45The tiles, we've left as they are, cos it's a buy-to-let property
0:51:45 > 0:51:48so there's no need to change those, just a clean-up.
0:51:48 > 0:51:51The same with the units, nice modern kitchen, we've left that as it is.
0:51:51 > 0:51:56We've put new light fittings throughout the downstairs as well.
0:51:56 > 0:52:01Remember that property manager Adrian is spending someone else's money.
0:52:01 > 0:52:05The refurbishment budget was estimated at only £2,000 to £3,000
0:52:05 > 0:52:08but he has made that go a very long way.
0:52:10 > 0:52:12Upstairs, we've redecorated completely.
0:52:12 > 0:52:15It was very bright wallpaper, it was woodchip in the bedrooms.
0:52:15 > 0:52:18We had a purple room, a lime green room and a pink room.
0:52:18 > 0:52:21We've changed all that, it's all nice and neutral now.
0:52:21 > 0:52:24We've put nice, new modern light fittings in,
0:52:24 > 0:52:26new carpets throughout
0:52:26 > 0:52:29and we've put new blinds throughout the whole house.
0:52:29 > 0:52:32The budget we had was 2,500 to 3,000 originally.
0:52:32 > 0:52:36We came in under budget, which was great for the clients.
0:52:36 > 0:52:39We came in at 2,800 for the complete refurbishment.
0:52:39 > 0:52:41This particular client who bought this house,
0:52:41 > 0:52:44he's bought one property per year for the last five years.
0:52:44 > 0:52:46He's never seen any of his properties,
0:52:46 > 0:52:49so it's really important to have the trust element.
0:52:49 > 0:52:52He relies on me to buy the right property at the right price,
0:52:52 > 0:52:54and to keep on top of the budget.
0:52:54 > 0:52:58It's about keeping the client happy and producing the right numbers.
0:52:59 > 0:53:01The trick with investments like this
0:53:01 > 0:53:03is to keep your personal tastes out the way,
0:53:03 > 0:53:06concentrating on what's needed rather than what you fancy
0:53:06 > 0:53:09and Adrian does a good job at this.
0:53:11 > 0:53:14So, in the landing here, we've just generally decorated,
0:53:14 > 0:53:16new paintwork, we've done all the woodwork as well.
0:53:16 > 0:53:20Nice, new carpets, nice and neutral colours.
0:53:20 > 0:53:25The bathroom, the suite was fine, it's a nice, modern bathroom suite.
0:53:25 > 0:53:28We've just put down new flooring and decorated the walls.
0:53:28 > 0:53:31This end-terrace sits on a large garden plot
0:53:31 > 0:53:32and cost-efficient as ever,
0:53:32 > 0:53:36Adrian's sorted out the tired old facade of the property
0:53:36 > 0:53:39and the tumbledown fencing at the rear.
0:53:39 > 0:53:42With the outside, we've freshened up the masonry paint
0:53:42 > 0:53:44and the base of it.
0:53:44 > 0:53:49Upstairs, we've timber treated the outside, just for protection.
0:53:49 > 0:53:51The main changes are over here on the far side.
0:53:51 > 0:53:53Mainly cosmetic work again,
0:53:53 > 0:53:56where we've taken away the garage that was crumbling.
0:53:56 > 0:53:58It was in a very bad way.
0:53:58 > 0:54:01We've created a patio area, made it nice and clean with new fences
0:54:01 > 0:54:05and the new gate, so it's quite a nice, open area now.
0:54:06 > 0:54:11It's time to find out what two local property experts think of the revamp.
0:54:11 > 0:54:14The overall finish to the property is very good.
0:54:14 > 0:54:17I think the owner has made some excellent choices.
0:54:17 > 0:54:20He's considered the ceiling price of his location
0:54:20 > 0:54:23and he's been mindful of that when looking at his budget
0:54:23 > 0:54:25for refurbishments.
0:54:25 > 0:54:28First impressions of the property are very good.
0:54:28 > 0:54:31It's been finished to a much better standard
0:54:31 > 0:54:34than normally properties are that are bought to be let out.
0:54:34 > 0:54:38He's gone for a neutral scheme, all floor coverings are nice.
0:54:38 > 0:54:41The bathroom and kitchen originally were nice.
0:54:41 > 0:54:44They've been kept, so good overall.
0:54:44 > 0:54:49Sounds like Adrian is making the right decisions for his business and clients,
0:54:49 > 0:54:52as he knows the local area and rental markets.
0:54:54 > 0:54:57He bought the house for £66,000
0:54:57 > 0:55:00and spent £2,800 on the refurbishment,
0:55:00 > 0:55:05bringing his clients' total investment to 68,800 quid.
0:55:05 > 0:55:09If it were to be sold, what could it sell for?
0:55:09 > 0:55:12In the present market, I'd expect the property to achieve
0:55:12 > 0:55:16a resale value of between £80,000 and £85,000.
0:55:16 > 0:55:20We'd look to market the property for around 89,950
0:55:20 > 0:55:24and would hope to achieve an offer of £87,000.
0:55:24 > 0:55:27That would give Adrian's client a profit of between
0:55:27 > 0:55:3311,200 and £18,200, before tax and expenses.
0:55:33 > 0:55:36Yes, we'll be very happy with those valuations.
0:55:36 > 0:55:39We didn't buy to resell, it is for the buy-to-let market
0:55:39 > 0:55:42but it's come in at just under 69,000
0:55:42 > 0:55:44with the purchase price and refurbishment.
0:55:44 > 0:55:47So, very happy with those valuations.
0:55:47 > 0:55:51But Adrian is keeping this as a buy-to-let for his clients,
0:55:51 > 0:55:54so what rental figures might it attract?
0:55:54 > 0:55:56In the property's current condition,
0:55:56 > 0:55:59we'd expect to achieve a rental figure of between
0:55:59 > 0:56:02475 and £500 per calendar month.
0:56:02 > 0:56:07The rental valuation of somewhere between 450 and 495 per calendar month
0:56:07 > 0:56:09would most certainly be achievable.
0:56:09 > 0:56:12I think those valuations are low, in my opinion.
0:56:12 > 0:56:15We do have a tenant signed up and she's moving in next week
0:56:15 > 0:56:17at a rental of 550 per month
0:56:17 > 0:56:19which is returning 9.6% gross yield,
0:56:19 > 0:56:21which, in today's market, is excellent.
0:56:21 > 0:56:23We're very happy.
0:56:23 > 0:56:26With seven years of property management behind him,
0:56:26 > 0:56:30is Adrian feeling the urge to move on to pastures new?
0:56:30 > 0:56:33The plan for the future is to carry on sourcing properties -
0:56:33 > 0:56:36look for new clients and buy property and rent them out
0:56:36 > 0:56:39and manage them on behalf of those clients.
0:56:41 > 0:56:44Join us next time as we meet more brave buyers
0:56:44 > 0:56:46who tried to make a killing on property
0:56:46 > 0:56:48or just want to find somewhere to live.
0:56:48 > 0:56:51Yes, join us then for more Homes Under The Hammer.
0:56:51 > 0:56:52- See you.- Goodbye.
0:57:12 > 0:57:15Subtitles by Red Bee Media Ltd