0:00:02 > 0:00:05- Hello and welcome.- All sorts of people buy property at auction.
0:00:05 > 0:00:07They attract buyers from all walks of life.
0:00:07 > 0:00:12And that's because there are bargains to be had buying homes under the hammer.
0:00:37 > 0:00:41Well, there's a huge variety of buyers
0:00:41 > 0:00:44and a great selection of properties when you go to an auction.
0:00:44 > 0:00:46It really is a race to get the best bargains.
0:00:46 > 0:00:51You have to be in it to win it. Let's see what's featuring on today's programme.
0:00:52 > 0:00:57'In Derby, there's an auction lot that's just a plot and a garage.'
0:00:57 > 0:01:01It may not have a property. What it does have is potential.
0:01:02 > 0:01:06'You could face problems in Kent trying to sniff out a bargain.'
0:01:06 > 0:01:11No nose on that one. No nose on that one. Not an attractive look.
0:01:12 > 0:01:18'And this Lancashire semi has a big kitchen, spacious lounge and large bedrooms.'
0:01:18 > 0:01:22However, what is going on at the end here? This is really strange.
0:01:23 > 0:01:26'All of these properties went to auction.
0:01:26 > 0:01:32- 'Find out who bought them and what they paid when they went under the hammer.'- And it's yours.
0:01:37 > 0:01:41'Derby in the East Midlands is a city that's always moved with the times.
0:01:41 > 0:01:46'And with £2 billion being ploughed into a new regeneration scheme,
0:01:46 > 0:01:49'the entire shape of the place is changing.'
0:01:49 > 0:01:52Well, I'm in Derby on a popular residential street,
0:01:52 > 0:01:55close to the city centre, good transport links.
0:01:55 > 0:01:59I'm here to see something which had a guide price of 18,000 quid.
0:01:59 > 0:02:03Yes, 18,000. So, what do you get for your money?
0:02:06 > 0:02:08Well, not a lot by the look of it.
0:02:08 > 0:02:11What you don't have is a house.
0:02:11 > 0:02:14What you do have is this garage,
0:02:14 > 0:02:17and more importantly, the plot of land that it sits on,
0:02:17 > 0:02:21because it may not have a property, but what it does have is potential.
0:02:21 > 0:02:24# You've got potential
0:02:25 > 0:02:27# You're my life
0:02:27 > 0:02:31'You wouldn't usually be rubbing your hands with joy at the prospect of owning a garage
0:02:31 > 0:02:36'and an outdoor toilet, but if you can look past the rather worn constructions,
0:02:36 > 0:02:38'there is a bit of land here.
0:02:38 > 0:02:42'It's also a pretty pleasant street within walking distance of the city centre,
0:02:42 > 0:02:46'so that garage and loo may not have much kerb appeal,
0:02:46 > 0:02:50'but the attraction is that the plot comes with planning permission.'
0:02:50 > 0:02:54So, what are the plans that have been passed for the plot?
0:02:54 > 0:02:56As if by magic, I have them.
0:02:58 > 0:03:03Basically, two one-bedroom apartments in a single unit, double storey.
0:03:03 > 0:03:09Detached. Actually quite interesting. It sits into the line of terraced properties there,
0:03:09 > 0:03:12access down the side here.
0:03:12 > 0:03:15Here's the plans for the two apartments.
0:03:15 > 0:03:17The ground floor and then the upstairs one.
0:03:17 > 0:03:23Pretty much identical, apart from the fact that you access the upstairs via its own entrance.
0:03:23 > 0:03:28One bedroom. Kitchen/living area. And en suite bathroom. Everything you could need.
0:03:28 > 0:03:33Your only decision, really, to make is, is this making the most of the space?
0:03:33 > 0:03:36And you know that? I think it is.
0:03:36 > 0:03:39# It's in the way that you use it
0:03:41 > 0:03:44'I suppose the other option you've got here is to build one house
0:03:44 > 0:03:48'or possibly even two mews houses side by side.
0:03:48 > 0:03:52'But because of the limited space, you may get into difficulties with access
0:03:52 > 0:03:54'and they would be rather small.'
0:03:54 > 0:04:00So is it worth bothering with changing the plans that have already been approved?
0:04:00 > 0:04:05Before you make that decision, bear in mind that not only are you going to have to pay architects' costs,
0:04:05 > 0:04:08you have to pay for another submission to the planning department
0:04:08 > 0:04:13and they may not approve it. And there's all that delay that's involved.
0:04:13 > 0:04:15So only do it if you really have to.
0:04:15 > 0:04:20'But before any decisions are made, it would be advisable to research the local market.
0:04:20 > 0:04:24'Derby has seen a lot of development in the last few years
0:04:24 > 0:04:26'and all sorts of new accommodation has popped up.
0:04:26 > 0:04:31'There's no point in building something which is surplus to requirements.
0:04:31 > 0:04:34'The guide price for this plot was £18,000.
0:04:34 > 0:04:36'So we asked a local estate agent to take a look at it
0:04:36 > 0:04:39'and give us her thoughts.'
0:04:39 > 0:04:42The existing planning permission is for two one-bedroom flats
0:04:42 > 0:04:46and that's probably the best way to maximise the income on it.
0:04:46 > 0:04:49By splitting the plot into two units, you maximise your return.
0:04:49 > 0:04:55'But, of course, there are other things to think about when adding residential properties to a street.'
0:04:55 > 0:04:57# Pull up to my bumper, baby
0:04:57 > 0:05:00# In your long black limousine
0:05:00 > 0:05:06Parking is quite restricted. It's on-street only, which does mean you do get double parking constantly.
0:05:06 > 0:05:09So having two properties in a space where there was a drop kerb
0:05:09 > 0:05:12means that parking will be at a minimum.
0:05:12 > 0:05:17'The welcome news is that in this area, you don't necessarily need a car.
0:05:17 > 0:05:21'There are good transport links and the city centre is close enough to walk to.
0:05:21 > 0:05:25'So this all seems great. But do the figures add up?'
0:05:25 > 0:05:30The potential rental income for the two one-bed individual flats
0:05:30 > 0:05:34would be between £350 and £375 per calendar month.
0:05:34 > 0:05:39I believe the resale value would be around £70,000.
0:05:39 > 0:05:45So, a chance to take on a new build with potential profits if you keep your budget in check.
0:05:45 > 0:05:48Who fancied it? Let's find out when it went under the hammer.
0:05:52 > 0:05:55Start me where you like on this one. Guide is 18 plus.
0:05:55 > 0:05:58Two one-bedroom apartments.
0:05:58 > 0:06:0218,000. 17 to start. 17,000 on the far left.
0:06:02 > 0:06:04Thank you. At 17,000.
0:06:04 > 0:06:0817,500 in the middle. 17,500. 18 on the left.
0:06:08 > 0:06:11At 18,000. 500. 18,500.
0:06:11 > 0:06:1319? 19,000.
0:06:13 > 0:06:1519,500. 20,000.
0:06:15 > 0:06:18And a half?
0:06:18 > 0:06:21In the middle at 20,000. It's in the market. We're going to sell.
0:06:21 > 0:06:25At the back, 20 and a half. 21 is bid.
0:06:25 > 0:06:2721. On the back row, 21,500?
0:06:27 > 0:06:2921,500.
0:06:29 > 0:06:3222,000. 22,500?
0:06:32 > 0:06:3522,000 in the centre.
0:06:35 > 0:06:38At £22,000 it goes once.
0:06:38 > 0:06:42Twice. Third and last opportunity. All done?
0:06:42 > 0:06:44- HAMMER BANGS - Sold at 22. Thank you.
0:06:44 > 0:06:49'With a successful bid of 22,000, the land was purchased by Janice.
0:06:49 > 0:06:52'She's a bookkeeper for the family building firm
0:06:52 > 0:06:55'and her builder son Chris would be in charge of carrying out the work.
0:06:55 > 0:06:59'I met up with them both to hear more.'
0:07:01 > 0:07:03Janice, Chris, good to meet you both.
0:07:03 > 0:07:07- And you.- Congratulations. Tell me why you wanted to buy this little plot.
0:07:07 > 0:07:12It's a start to hopefully move on. Build one, sell it, and a little bit bigger each time.
0:07:12 > 0:07:17Another reason why I picked it was because it's keeping us in work as a building firm.
0:07:17 > 0:07:19We've got our own generated work.
0:07:19 > 0:07:22Cos we're not really out of a recession and work's a bit tight.
0:07:22 > 0:07:27- People's prices are tight. So it is killing two birds with one stone. - Right.
0:07:27 > 0:07:30Tell me more about the family business. How long has it been going for?
0:07:30 > 0:07:36Seven years, yeah. Me, my dad, my mum does all the book work for us,
0:07:36 > 0:07:39and my brother subcontracts. He's an electrician.
0:07:39 > 0:07:43My sister's a builder, she used to work for you. She's branched out on her own now.
0:07:43 > 0:07:46# It runs in the family
0:07:46 > 0:07:52'So, like many people, this family's business was hit hard by the financial downturn.
0:07:52 > 0:07:55'But it's encouraging to see them sticking together as a family
0:07:55 > 0:07:58'to work hard and get things back on track.
0:07:58 > 0:08:03'The question is, what made them decide to tackle the project from scratch?'
0:08:03 > 0:08:07The land that was advertised came with planning permission for a new build,
0:08:07 > 0:08:15which was on the plans to do two separate flats, a ground floor and a first floor flat.
0:08:15 > 0:08:19But, on a bit of research, most of the estate agents told me
0:08:19 > 0:08:23that the city centre is saturated with flats at the minute.
0:08:23 > 0:08:27Although we could've rented them, we probably would've had trouble selling them.
0:08:27 > 0:08:30- So we decided to change... - Changed it to a two-bed.
0:08:30 > 0:08:36- Oh, right.- Well, three beds. He's managed to get a double bedroom and an en suite in the roof space.
0:08:36 > 0:08:39- Who has?- The architect.- Oh, OK.
0:08:39 > 0:08:44- So it was on his advice that we went for three. Fair enough.- Wow.
0:08:44 > 0:08:47So the money that's in that, normally you'd expect a couple of flats
0:08:47 > 0:08:50to generate you a better return than just a one-off house.
0:08:50 > 0:08:55It would've done were we able to sell them. You'd rent them, but that wasn't going to get my capital back
0:08:55 > 0:09:01- to move on and get something else. - Well done for doing your market research before you started.
0:09:01 > 0:09:06Plus, there's not going to be quite so much in the budget to make it into a house
0:09:06 > 0:09:12as opposed to flats, because you've not got two lots of services, bathrooms, kitchens.
0:09:12 > 0:09:18- So the build should be cheaper, so we'll have a little bit more on the return.- OK.- We hope.
0:09:18 > 0:09:23'Janice and Chris seem pretty confident about their intentions for the site.
0:09:23 > 0:09:25'But there's one issue that worries me.'
0:09:25 > 0:09:31What about planning? Obviously, it's got planning for these two flats. You'll have to start from scratch.
0:09:31 > 0:09:35Er, no, cos we're not changing the structure of the house,
0:09:35 > 0:09:41- it's just what it's being used for. - The footprint, as they call it, is the same.
0:09:41 > 0:09:46- And the building regs aren't through, anyway, so you've still got to go through building regs.- Right.
0:09:46 > 0:09:52It will have to go through planning, but it's just altering internals, really.
0:09:52 > 0:09:55It shouldn't take as long as starting from scratch.
0:09:55 > 0:09:59So any idea how much you've got set aside to do the work?
0:09:59 > 0:10:02We're looking at around £60,000, we hope,
0:10:02 > 0:10:06- with the cost of buying, 22 was it? - 22 grand, yeah.
0:10:06 > 0:10:11- Hopefully we should make a bit of a profit.- What's the expected value of the property once built?
0:10:11 > 0:10:18- We're thinking about £100,000. - Well, the estate agent said between £105,000, £110,000 for a two-bed.
0:10:18 > 0:10:23We've managed to get a three-bed and en suite, so I don't know whether that will up the cost or not.
0:10:23 > 0:10:27Probably. But, again, it'll have to keep in with the area.
0:10:27 > 0:10:31Talk me through exactly what you need to do. Are you going to demolish the garage first?
0:10:31 > 0:10:37Yeah, take the garage down first, and then fence the whole boundary off and then start digging.
0:10:37 > 0:10:40- Digging. - MARTIN LAUGHS
0:10:40 > 0:10:43- Footings in and then up it goes. - Right. What's the timescale?
0:10:43 > 0:10:50Er, four months tight, probably five at a push, but that's still going some.
0:10:50 > 0:10:52# We can work it out
0:10:52 > 0:10:55# We can work it out
0:10:55 > 0:11:00'With that £60,000 budget and a pretty tight four-month timescale,
0:11:00 > 0:11:05'the family will need to call on all their years of experience for this to work out.
0:11:05 > 0:11:08'It seems like a great project to get the ball rolling
0:11:08 > 0:11:11'and they certainly have high hopes for it.'
0:11:11 > 0:11:17- So, basically, you get through the sticky period at the moment and then onto other projects.- Yeah.
0:11:17 > 0:11:20Who knows where it could lead? We'll just keep going.
0:11:20 > 0:11:25Erm, the next one and the next one, and each time making a bit more money to put in the pot
0:11:25 > 0:11:27to go for something a bit bigger next time.
0:11:27 > 0:11:32- We might be building 30 houses on a plot soon. We hope.- You never know.
0:11:32 > 0:11:37- Listen, congratulations.- Thank you. - Good luck with it and I look forward to seeing what you're going to do.
0:11:37 > 0:11:41- Yeah, come back when it's finished. - We will. - Come back and help if you want to.
0:11:42 > 0:11:47So, Janice and Chris showing the importance of doing your research
0:11:47 > 0:11:50before you embark on any building project.
0:11:50 > 0:11:54It's all well and good thinking you're going to make more money out of building flats,
0:11:54 > 0:11:59but only if you can sell them. How will they get on with the new build? Find out later in the show.
0:12:03 > 0:12:07'Affordable property right on the water and commutable to London,
0:12:07 > 0:12:13'Chatham in North Kent is a popular destination for would-be buyers looking to board the property boat.'
0:12:13 > 0:12:19Just around the corner from the train station and I'm here to see this end of terrace property.
0:12:19 > 0:12:22Now, the guide price, £75,000 to £80,000.
0:12:22 > 0:12:26It doesn't look bad from the outside. I'm going to have a look around.
0:12:27 > 0:12:30Well, it's quite nice to see the original front door.
0:12:30 > 0:12:33It always makes that nice clunking noise.
0:12:33 > 0:12:38OK, bit of a nightmare in here. You've got glossy woodchip wallpaper everywhere,
0:12:38 > 0:12:44but a nice size sitting room, an original fireplace, beautiful sash windows and look at these mouldings.
0:12:44 > 0:12:46Ooh. No nose on that one.
0:12:46 > 0:12:50No nose on that one. Not an attractive look.
0:12:50 > 0:12:55Now, through into the second reception room. Really, really good size. I like to see this.
0:12:55 > 0:12:59A little storage space through there under the stairs, another fireplace.
0:12:59 > 0:13:04The kitchen through here. You could think about taking this wall out
0:13:04 > 0:13:08and opening this up for a big kitchen-diner. That would be quite a nice space.
0:13:08 > 0:13:13Something else that I'm really surprised about, there's central heating in this property.
0:13:13 > 0:13:17I didn't expect to see that. This house feels solid and well built.
0:13:17 > 0:13:21There's a bit of money to be spent, but I quite like it.
0:13:21 > 0:13:26'Structurally, this Victorian end of terrace property seems in good order.
0:13:26 > 0:13:31'It's lovely to see the original sash windows and exposed brickwork outside.
0:13:31 > 0:13:34'And all the decently-sized garden needs is a tidy up.
0:13:35 > 0:13:39'But it is in need of vast improvements throughout the inside,
0:13:39 > 0:13:43'from the dated kitchen to the crumbling reception rooms.
0:13:43 > 0:13:46'And now we need to venture upstairs.'
0:13:46 > 0:13:50Upstairs you've got two bedrooms, really good sizes,
0:13:50 > 0:13:55but what I love is this old original fireplace. There is so much detail here.
0:13:55 > 0:14:00Now, where's that bathroom? Typically, it's off this room!
0:14:00 > 0:14:03You could just leave it where it is
0:14:03 > 0:14:05or you could create a corridor along here
0:14:05 > 0:14:08and along this wall here, so you come in this way,
0:14:08 > 0:14:12keeping this bedroom separate with the window.
0:14:12 > 0:14:14It will make this bedroom so much smaller,
0:14:14 > 0:14:17but you could look at taking this chimney breast out,
0:14:17 > 0:14:20which I think would give you the extra square-footage you need.
0:14:21 > 0:14:24'This definitely requires a rethink,
0:14:24 > 0:14:29'but creating a corridor to the bathroom will make this house much more attractive
0:14:29 > 0:14:31'to both buyers and tenants.'
0:14:32 > 0:14:34# Baby, I don't care
0:14:34 > 0:14:37'So what will a local estate agent make of this place
0:14:37 > 0:14:41'that had a guide price of £75,000 to £80,000?'
0:14:42 > 0:14:45The downside at the moment is that the bathroom is off a bedroom.
0:14:45 > 0:14:49But the one thing I do really like is that whoever's had it before
0:14:49 > 0:14:52has left the fireplaces alone, so even in the bedrooms,
0:14:52 > 0:14:54it's got the original fireplaces.
0:14:54 > 0:14:57'So we know the pros and cons of the property.
0:14:57 > 0:15:00'What would be the best way of bringing it back to life?'
0:15:00 > 0:15:04It really depends what the new owners are going to do with the property.
0:15:04 > 0:15:08But they'll have to get rid of the windows and put double glazing in, sadly.
0:15:08 > 0:15:12They need to treat the damp, upgrade the kitchen and the bathroom
0:15:12 > 0:15:15and get rid of this woodchip paper that is very dated.
0:15:15 > 0:15:19'How much regular income could the house achieve?'
0:15:19 > 0:15:21If we were looking to rent the property out,
0:15:21 > 0:15:29then I would be looking at somewhere in the region of £575 to £595 per calendar month.
0:15:29 > 0:15:32'And the potential sale value?'
0:15:32 > 0:15:36If the new owners decide they want to put it on the market for sale and they did a good job,
0:15:36 > 0:15:40I think we'd be looking in the region of £105,000
0:15:40 > 0:15:42to £110,000 for the property.
0:15:42 > 0:15:48There's a fair bit of work here and that upstairs bathroom really bothers me.
0:15:48 > 0:15:52Now, the resale value in this area is not that strong.
0:15:52 > 0:15:54My advice to anybody wanting to take this one
0:15:54 > 0:15:58is spend as little as possible and perhaps let it out.
0:15:58 > 0:16:01Let's see who fancied it at the auction.
0:16:05 > 0:16:09Lot 22. It's an end of terrace house for improvement.
0:16:09 > 0:16:13All we need is a buyer. Start me where you will. Guide of 75 to 80.
0:16:13 > 0:16:15Can I come in at 75? 75,000?
0:16:15 > 0:16:19Give me 70 then. Doesn't matter where we start. £70,000 if you like.
0:16:19 > 0:16:2470,000 by the door. I'm on the way. At 70 I've got. And 2 do I see?
0:16:24 > 0:16:2772 I'm bid. 72. And 4 with you, sir.
0:16:27 > 0:16:2974. 74. And 6.
0:16:29 > 0:16:3376. And 8. 78 if you like.
0:16:33 > 0:16:36A £76,000 bid I've got. 78 sitting down.
0:16:36 > 0:16:40Fill it up to 80. At £80,000. 79 if you wish, sir.
0:16:40 > 0:16:4479. You're going to save your money for another lot later on. OK.
0:16:44 > 0:16:46I've got £78,000 there. 79 I'm looking for.
0:16:46 > 0:16:4979 in the blue. And 80.
0:16:49 > 0:16:5381 I'm looking for. 81 bid. 82 now if you like. At 82 do I see?
0:16:53 > 0:16:5782,000 I'm looking for. Are we all done at £81,000?
0:16:57 > 0:17:00Sitting down on the right for the first time.
0:17:00 > 0:17:04For the second time. Third and final time at £81,000.
0:17:04 > 0:17:09- HAMMER BANGS - Yours, sir, at 81. That's A897. Thank you.
0:17:09 > 0:17:13'Winning the auction with his bid of £81,000 was Steve,
0:17:13 > 0:17:16'who purchased the property along with Ashley.
0:17:16 > 0:17:20'The two used to be neighbours and have known each other almost 30 years.
0:17:20 > 0:17:22'This is their first investment property.'
0:17:22 > 0:17:28# When you've got friends and neighbours
0:17:28 > 0:17:32# All the world is a happier place
0:17:32 > 0:17:35- Guys, it's great to meet you. Congratulations. - Thank you very much.
0:17:35 > 0:17:39- You tip-toed £1,000 over the top end of the guide price.- We did.
0:17:39 > 0:17:43- Just, yeah.- So tell me, what was your upper limit, Steve?
0:17:43 > 0:17:48We were prepared to go to about 86. We're glad we didn't.
0:17:48 > 0:17:52But we sat down, we targeted six houses
0:17:52 > 0:17:57and we went for them in the sequence that they came up and this was the second one, so we went with it.
0:17:57 > 0:18:01- So did you research thoroughly the six houses you were going to buy that day?- Yes.
0:18:01 > 0:18:04We downloaded all the legal packs, we went through them,
0:18:04 > 0:18:10worked out a price we were prepared to pay for all of them and went for them in that sequence.
0:18:10 > 0:18:13I love you two. Do you know how rare it is
0:18:13 > 0:18:17- that I meet a couple of guys like you that have done their homework? - We even costed each house,
0:18:17 > 0:18:20what it would cost to actually renovate each house
0:18:20 > 0:18:25to the point, almost, of £1,000 for this, £1,000 for that, whatever.
0:18:25 > 0:18:30We even looked at the house and said, "Right, it will need a new heating system and new windows".
0:18:30 > 0:18:36So we costed everything as best we could, almost down to the last pound,
0:18:36 > 0:18:41so that we knew that we could afford the maximum to buy the house. The actual research part of it,
0:18:41 > 0:18:44we put every hour that we had into the research.
0:18:44 > 0:18:46We spent absolutely hours and weeks doing it.
0:18:46 > 0:18:51We've viewed houses for auction, we've viewed houses through estate agents,
0:18:51 > 0:18:55through the newspapers, our wives were looking through newspapers.
0:18:55 > 0:18:59Any house that was available that we thought was up for renovation, we'd look at it.
0:18:59 > 0:19:02- We must have looked at 40, 50 properties.- That's fantastic!
0:19:02 > 0:19:05That's exactly what you should be doing
0:19:05 > 0:19:08so you know you've put your money in a good project here.
0:19:08 > 0:19:10- Hopefully, yeah.- We hope so.
0:19:11 > 0:19:15'Top marks for this pair. Viewers, please take note.
0:19:15 > 0:19:18'Steve and Ashley have really set a benchmark.
0:19:18 > 0:19:24'The key to buying well at auction is research, research and more research.'
0:19:24 > 0:19:28So let's talk about why you're doing this and how you guys know each other.
0:19:28 > 0:19:33And whose idea was it to invest in property? Is this a sideline?
0:19:33 > 0:19:35I was in the brick industry for 35 years.
0:19:35 > 0:19:40Sadly, that came to an end, and I need something else to do,
0:19:40 > 0:19:45and I've been doing this sort of work for other people for years, kitchens, bathrooms, small walls.
0:19:45 > 0:19:47- I think Ashley's the same. - Yeah, pretty much.
0:19:47 > 0:19:51And it was a chance meeting at my wife's birthday party last year,
0:19:51 > 0:19:55we were sitting there chatting, "What are you going to do next?" and Ashley said to me,
0:19:55 > 0:20:01"I'm thinking of going into property development," I said, "That's something I've always wanted to do."
0:20:01 > 0:20:04So we had a chat about it and it sprung from there.
0:20:04 > 0:20:08Yeah, this is a business for Steve and I. I'm semi-retired and want to retire.
0:20:08 > 0:20:11Steve's been made redundant. So we have to make a living some way.
0:20:11 > 0:20:15We both enjoy doing this. We think we'll both enjoy working together.
0:20:15 > 0:20:18So why not? If we don't give it a try, we'll never know.
0:20:18 > 0:20:22'I couldn't agree more. In the case of these two,
0:20:22 > 0:20:25'they're not jumping into the complete unknown.
0:20:25 > 0:20:30'With their background in building, they have the knowledge and contacts to take this project on.'
0:20:30 > 0:20:34What do you like about this property? Why was this property suitable for you?
0:20:34 > 0:20:36- Well, one, price.- Yeah.
0:20:36 > 0:20:42I mean, I've always had this wording when I find houses, some are honest houses and some aren't.
0:20:42 > 0:20:47And we've looked at some really bad houses that people have had and done some really bad work to.
0:20:47 > 0:20:50This one's had no real interference from anybody.
0:20:50 > 0:20:54It is what it is and it's been like this since it was built almost.
0:20:54 > 0:20:59So from our point of view, it's just a house that we can actually bring into the 21st century.
0:20:59 > 0:21:03The wall to the kitchen and dining room is coming out, so it'll become a kitchen-diner.
0:21:03 > 0:21:06Then we'll have a kitchen-diner and a front room.
0:21:06 > 0:21:12And then the false walls are going in upstairs to separate the second bedroom from the bathroom
0:21:12 > 0:21:14which will make it much more private.
0:21:14 > 0:21:19We've got some remedial work to do on the outside wall and we've taken advice on that.
0:21:19 > 0:21:24- So we think we know what we're doing.- You're lucky. He knows all about his brickwork.- Definitely.
0:21:24 > 0:21:29- And he knows all the contacts to find them, as well.- I used to make them. - THEY LAUGH
0:21:31 > 0:21:34# Stone by stone, yeah
0:21:34 > 0:21:37# Brick by brick
0:21:37 > 0:21:40'So with experience under their belts and enthusiasm a plenty,
0:21:40 > 0:21:43'I think these two could have a winning formula.
0:21:43 > 0:21:48'But did all their pre-auction planning leave them any time to plan ahead?'
0:21:48 > 0:21:52Guys, what's your timescale? How quick do you think you can turn this place around?
0:21:52 > 0:21:56We're looking to be two, no more than three months.
0:21:56 > 0:22:00Three months tops. Two months would be good. One month would be even better.
0:22:00 > 0:22:04What is the ceiling price of this property? Have you done your research
0:22:04 > 0:22:08- to find out what the top end of this is?- We've done some research in this area.
0:22:08 > 0:22:14These houses normally fetch in the region of £105,000 to £110,000 against similar properties.
0:22:14 > 0:22:20With our buyer price of 81, we've got a budget of around £8,000.
0:22:20 > 0:22:25- With the other costs, we think that's quite viable.- You've got to try and stick to that budget,
0:22:25 > 0:22:27because this is a money-making machine for you.
0:22:27 > 0:22:32- It's all about getting the money and moving onto the next one. - Yeah.- Yeah.
0:22:32 > 0:22:34- I wish you the best of luck with this.- Thank you.
0:22:34 > 0:22:37It'll be quite exciting seeing what you do. Good luck.
0:22:37 > 0:22:42Everybody needs good neighbours, but these two get on so well,
0:22:42 > 0:22:44they've decided to go into business together.
0:22:44 > 0:22:49There is a lot of work for the duo here and I worry that Ashley's honest house
0:22:49 > 0:22:51may prove to throw up a few issues.
0:22:51 > 0:22:54In my experience, houses can be very dishonest,
0:22:54 > 0:22:57disguising a whole host of problems.
0:22:57 > 0:23:01How will they get on? Well, you can find out later on in the programme.
0:23:02 > 0:23:08'Coming up, this Lancashire house has a very strange extension with a kitchen and plastic roof.'
0:23:08 > 0:23:11So, all in all, it's got to go.
0:23:12 > 0:23:19'In Chatham, Kent, Steve and Ashley have discovered some uncomfortable home truths.'
0:23:19 > 0:23:22- He absolutely hates my singing. - THEY LAUGH
0:23:23 > 0:23:29'But first, we go back to Derby where this tiny building plot has caused problems.'
0:23:29 > 0:23:32It's tricky. A lot of it is smaller than a normal house.
0:23:37 > 0:23:40'Earlier in the programme, we were in Derby,
0:23:40 > 0:23:44'where Janice had paid £22,000 for this garage on a plot of land
0:23:44 > 0:23:47'squeezed between two rows of terraced houses.
0:23:48 > 0:23:52'She works as the bookkeeper for the family building company.
0:23:52 > 0:23:59'The attraction for Janice and her builder son Chris was that the plot had already got planning permission
0:23:59 > 0:24:02'for two one-bedroom apartments in a single double-storey building.
0:24:04 > 0:24:07'But their architect had drawn up some revised plans
0:24:07 > 0:24:12'that changed the layout of the building and created just one single house.'
0:24:12 > 0:24:16He's managed to get a double bedroom and an en suite in the roof space.
0:24:16 > 0:24:20- On his advice, that was, to go for three. Fair enough.- Wow.
0:24:20 > 0:24:26Normally you'd expect a couple of flats to generate a better return than one house.
0:24:26 > 0:24:30It would've done where we able to sell them. You'd rent them
0:24:30 > 0:24:33but that wasn't going to get my capital back to move on.
0:24:33 > 0:24:38'The project was a joint business venture for Janice and Chris
0:24:38 > 0:24:41'with the finance coming from Janice and her friend.
0:24:41 > 0:24:48'Well, it's now ten months later and back in Derby, Chris is keen to show us the results of his hard work.
0:24:49 > 0:24:52'Wow!
0:24:56 > 0:24:59'The garage has been replaced by a new detached house
0:24:59 > 0:25:02'that blends in seamlessly with the original properties.
0:25:07 > 0:25:14'On the ground floor, there's a kitchen-living room which runs the whole length of the house.
0:25:14 > 0:25:20'The units are already in, with a second fit of the sink and the appliances still to add.
0:25:20 > 0:25:26'Chris is an experienced builder, but did he find the scale of this project a challenge?'
0:25:26 > 0:25:29Well, it's kind of a standard sort of build,
0:25:29 > 0:25:32but it's been tricky because a lot of it is smaller than a normal house,
0:25:32 > 0:25:38so to get two and a half bedrooms in such a small plot was a challenge, but it's been interesting.
0:25:38 > 0:25:45'Upstairs, the bathroom is plastered and the basin is in. The loo and shower are next.
0:25:48 > 0:25:54'At the front of the property is bedroom one. I think you'd describe it as a bijou double.
0:25:55 > 0:26:00'While next to the bathroom is the smallest bedroom, which is definitely a single.
0:26:04 > 0:26:08'We've seen one and a half bedrooms already, but a third has been created up in the attic.
0:26:08 > 0:26:15'Getting access up here has lost some valuable space on the first floor. How did they do it?'
0:26:15 > 0:26:17Well, it was down to the architect, really.
0:26:17 > 0:26:23Because we had such a small plot to work with and trying to get two bedrooms into it,
0:26:23 > 0:26:25to get the stairs up takes up a lot of room,
0:26:25 > 0:26:28so the architect designed the stairs like this.
0:26:28 > 0:26:34- It was a bit of trouble making them, but it's turned out all right. - 'It really has.
0:26:34 > 0:26:37'Up there, they've designed a really lovely bedroom.
0:26:37 > 0:26:40'The roof windows and the interesting angles are great.
0:26:40 > 0:26:45'It's definitely got character. And there's more. A full en suite. Amazing!
0:26:49 > 0:26:55'Outside, the bricks were specifically chosen to blend in with the surrounding area.
0:26:55 > 0:27:00'They used a stonemason to copy the details of the neighbouring properties.
0:27:01 > 0:27:04'But getting the groundwork done wasn't so easy.'
0:27:04 > 0:27:07After the initial dig down to 900 mil,
0:27:07 > 0:27:10the building inspector noticed a tree on the back,
0:27:10 > 0:27:14so we had to dig down to two metres on the back.
0:27:14 > 0:27:17On the second inspection, there was also a manhole at the front.
0:27:17 > 0:27:21It was a metre and a half deep, and we have to go 500 lower than the manhole.
0:27:21 > 0:27:24So we had to go two metres on the front corner, as well,
0:27:24 > 0:27:28which took quite a lot of time with the hand-dig rather than the machine.
0:27:29 > 0:27:34'Well, Chris has built the house that was financed by his mum and her friend.
0:27:34 > 0:27:38'How much has it cost to build and did he manage to stick to the budget?'
0:27:38 > 0:27:43The original budget for the build was £60,000 plus the purchase price
0:27:43 > 0:27:46and, yes, we've about made the budget.
0:27:46 > 0:27:50We're probably going to be £2,000 over, I think.
0:27:50 > 0:27:55'Time to get some expert advice from two local estate agents.
0:27:55 > 0:27:57'What do they think of the house?'
0:27:57 > 0:28:00It's certainly a unique property for the area.
0:28:00 > 0:28:02A little two-bedroom detached house
0:28:02 > 0:28:05on a street full of terraces, it's definitely special.
0:28:05 > 0:28:09If this was my property, I would make sure it was finished
0:28:09 > 0:28:13to a high standard and to quite a funky standard
0:28:13 > 0:28:16to appeal to the young person that likes to live close to town.
0:28:16 > 0:28:20I like the fact that it's split over three levels.
0:28:20 > 0:28:23I wasn't expecting that as I walked through the door
0:28:23 > 0:28:26and I think it really works with the house.
0:28:26 > 0:28:30I like the big open-plan living area downstairs,
0:28:30 > 0:28:32two bedrooms, two bathrooms, quite unusual.
0:28:32 > 0:28:35It's got a nice, modern, apartment-style feel to it.
0:28:35 > 0:28:40'Chris and his mother Janice plan to sell the property and invest the proceeds in another.
0:28:40 > 0:28:44'They paid £22,000 at the auction for the site
0:28:44 > 0:28:48'and Chris reckons the budget will come in at around £62,000,
0:28:48 > 0:28:52'making a total of £84,000. So what's the place worth now?'
0:28:52 > 0:28:56On the sales market, I would imagine this property on the market
0:28:56 > 0:28:59at £95,000. I think it would sell quickly at that price.
0:28:59 > 0:29:02For sale, I believe I would put it on the market
0:29:02 > 0:29:05at approximately £105,000.
0:29:05 > 0:29:09'Well, a potential gross profit before the usual selling expenses
0:29:09 > 0:29:12'of £11,000 to £21,000.
0:29:13 > 0:29:16'Is Chris confident of finding a buyer?'
0:29:16 > 0:29:20We've had some interest already, but unfinished, it tends to put people off,
0:29:20 > 0:29:26so we'll see what happens when it's finished. If it doesn't shift in six months, we'll look at letting it.
0:29:26 > 0:29:31I think, in terms of rent, the property would let for about £475 per calendar month.
0:29:31 > 0:29:35Rental valuation, I would suggest between £500 and £550 per calendar month.
0:29:36 > 0:29:41'So, bit of a gap between those valuations, but there's clearly lettings potential here.'
0:29:41 > 0:29:44Yeah, that's good. Really good.
0:29:44 > 0:29:47So it could work as a rental.
0:29:47 > 0:29:51'Although the plot originally had planning permission for two flats,
0:29:51 > 0:29:57'Chris and Janice did their research and discovered there was already an abundance of flats locally.
0:29:57 > 0:30:01'So they persevered and got the plans changed and they built a house.'
0:30:01 > 0:30:04I've enjoyed it. I think it's turned out as we expected, really.
0:30:04 > 0:30:09They're not the biggest bedrooms, but it's cute, isn't it? Something a bit different.
0:30:18 > 0:30:24'Today I'm in the town of Leigh, just six miles east of Wigan in Greater Manchester.
0:30:24 > 0:30:30'This post-industrial town has had some hard times picking up the pieces after its industries went.
0:30:30 > 0:30:33'But it's now clearly an area of regeneration.
0:30:35 > 0:30:41'There's a new sports village development and stadium and a brand new cinema complex, too.
0:30:44 > 0:30:48'The property we're here to see is located just about half a mile from Leigh town centre
0:30:48 > 0:30:53'in a popular residential area with this park and pond.
0:30:53 > 0:30:57'So, if you're looking for a great family location,
0:30:57 > 0:31:00'you could be quackers to miss this lot.
0:31:01 > 0:31:07'The property is in this road that has several different styles of houses.'
0:31:07 > 0:31:13And this is it. Three-bed semi. Guide price was 50,000 quid. Looks all right from the outside.
0:31:13 > 0:31:17Nice that it's got off-street parking. Let's hope it's as good inside!
0:31:20 > 0:31:22'Well, the windows and door look fairly new
0:31:22 > 0:31:26'and there are no gaping cracks in the brickwork. Promising.'
0:31:26 > 0:31:29Doesn't look too bad. Good start.
0:31:29 > 0:31:35Stairs up to your bedrooms there and then through into a really nice-sized lounge.
0:31:35 > 0:31:39I'd like to see a feature fireplace in there, but apart from that, it's a good size space.
0:31:39 > 0:31:43It looks a little bit dated, but I've seen a heck of a lot worse.
0:31:43 > 0:31:49Somebody's obviously knocked through at some stage into this, which is your dining room at the back.
0:31:49 > 0:31:53Fairly standard so far. I like it. What's down here, though?
0:31:56 > 0:31:59That is really, really weird.
0:31:59 > 0:32:05You've got this little corridor leading through to this extension at the back.
0:32:05 > 0:32:09I say extension, it's more like a conservatory. Look at that roof.
0:32:09 > 0:32:15Now, it's not a bad sized space, but the issues are...I reckon that's a single-skin wall,
0:32:15 > 0:32:17so there's going to be no damp-proofing in here,
0:32:17 > 0:32:24and in these days, mortgage companies are very fussy about property and where things are
0:32:24 > 0:32:28and a kitchen in an extension like this, which is really not properly built,
0:32:28 > 0:32:31is not going to go down too well with them.
0:32:31 > 0:32:35So I don't know where it should be. Probably in that dining room area.
0:32:35 > 0:32:38But it needs a bit of a rethink, this bit.
0:32:40 > 0:32:44'It all started so well.
0:32:44 > 0:32:47'But you are limited to where you could move the kitchen.
0:32:47 > 0:32:49'The only place really is the dining room,
0:32:49 > 0:32:53'but then you'd lose the lovely open-plan lounge.
0:32:53 > 0:32:57'If you then converted the extension into more of a conservatory-cum-summer room,
0:32:57 > 0:33:00'you'd have to go through the kitchen to access it.
0:33:02 > 0:33:05'The problem becomes clear when you go into the garden.'
0:33:06 > 0:33:10Well, from the inside, that kitchen area doesn't look too bad.
0:33:10 > 0:33:16But come to the rear of the property and you can see what a hideous carbuncle it really is.
0:33:16 > 0:33:20None of the other houses have got anything like it, I doubt it's got planning permission
0:33:20 > 0:33:23or that it would meet current building regulations.
0:33:23 > 0:33:25So, all in all, it's got to go.
0:33:30 > 0:33:35'Sorting out this extension is a headache you could do without.
0:33:35 > 0:33:40'But with a guide price of £50,000, there could still be a decent margin to be made here.'
0:33:40 > 0:33:45So upstairs and no great surprises. Fairly standard layout. Three bedrooms.
0:33:45 > 0:33:51Small bathroom, I have to say, but at least it's been recently refurbished, so that's a bonus.
0:33:51 > 0:33:56Smaller bedrooms there, then through to your master bedroom. It's a good size, you can't doubt that.
0:33:56 > 0:34:00However, what is going on at the end here? This is really strange.
0:34:00 > 0:34:03I can't quite figure out the construction.
0:34:03 > 0:34:07And a few more problems with water coming through there. That needs to be checked out.
0:34:07 > 0:34:11It's either a tile that's loose or maybe a bit of flashing.
0:34:11 > 0:34:13Either way, it needs a bit of attention.
0:34:13 > 0:34:17All in all, though, I like this house.
0:34:21 > 0:34:25'So, apart from the issue of relocating the kitchen,
0:34:25 > 0:34:31'this house appears to need just some decent decoration throughout to bring it up to date.
0:34:32 > 0:34:35'But what will a local estate agent think?
0:34:35 > 0:34:38'How does it compare with other local properties?'
0:34:38 > 0:34:41It's good. It's in reasonable condition.
0:34:41 > 0:34:45Obviously, the only issue is, the kitchen's in the conservatory,
0:34:45 > 0:34:49which you'd probably have to change round. With you having a cooker in a conservatory,
0:34:49 > 0:34:56it's fire regulations and things like that. Whether it would be mortgageable, I don't know.
0:34:57 > 0:35:02'What are the attractive features of the house that would encourage buyers to take this on?'
0:35:02 > 0:35:06I think the positives of the property are it's UPVC double-glazed,
0:35:06 > 0:35:10it's in reasonable condition, the bathroom looks fairly new.
0:35:10 > 0:35:16It's got good aspects at the front, it's overlooking a duck pond and it's close to local schools.
0:35:16 > 0:35:19'What could it be worth once it's been refurbished
0:35:19 > 0:35:22'and the issue of the kitchen has been sorted?'
0:35:22 > 0:35:27I would expect to achieve, once this property's renovated, £105,000.
0:35:27 > 0:35:32'How much could the place generate in rental income?'
0:35:32 > 0:35:36The rental value on this property would be £500 per calendar month.
0:35:37 > 0:35:42So, a lot of house for the money, and actually, a really pleasant home, this one.
0:35:42 > 0:35:47Or a good rental opportunity. Bit of work to do to sort out the kitchen at the back, cos that doesn't work,
0:35:47 > 0:35:52but apart from that it's a good one to go for. Let's see who bought it when it went under the hammer.
0:35:52 > 0:35:57OK, lot 22. Lovely looking property, this one. Three-bed semi.
0:35:57 > 0:36:00What's this worth? 40,000.
0:36:00 > 0:36:0240,000, then. 40,000 anywhere?
0:36:02 > 0:36:0640,000 bid. At 40,000. I have £40,000 on my left.
0:36:06 > 0:36:08Who's going to give me 42,000?
0:36:08 > 0:36:1242,000, then. At £42,000. 44.
0:36:12 > 0:36:14At 44. 46.
0:36:14 > 0:36:1646. 45?
0:36:16 > 0:36:19At £45,000 I have on my left.
0:36:19 > 0:36:21At 45,000. Do I see 46?
0:36:21 > 0:36:24It's your bid, 46. 47?
0:36:24 > 0:36:28No. At 46,000, then. 47 I'm looking for.
0:36:28 > 0:36:3047 bid at the back. At 47,000.
0:36:30 > 0:36:32Paddle 716 at 47. 48.
0:36:32 > 0:36:36At 48. 49, then. 50 at the back, may I say? 50,000.
0:36:36 > 0:36:40At £50,000. At 50,000, paddle 716 at the back.
0:36:40 > 0:36:43It's got to be sold and I'm going to sell it if nobody else bids.
0:36:43 > 0:36:47£50,000 for the first time. 51. At 51,000. 52. 52.
0:36:47 > 0:36:4953. 54?
0:36:49 > 0:36:5254. 55. 56.
0:36:52 > 0:36:5556. 57. 58.
0:36:55 > 0:36:5857,000. 57 and a half, I like your face.
0:36:58 > 0:37:0157 and a half, he started the bidding. 58.
0:37:01 > 0:37:04At 58. 58 and a half? 58 and a half. 59.
0:37:04 > 0:37:0659 and a half?
0:37:06 > 0:37:10No. At £59,000, then, for the first time.
0:37:10 > 0:37:13At £59,000 for the second time.
0:37:13 > 0:37:16- Are we all done at £59,000? - HAMMER BANGS - It's yours.
0:37:16 > 0:37:23'That final successful bid of £59,000 was made by Dave, here on the right.
0:37:23 > 0:37:26'He was at the auction with his friend Paul, who's a builder.
0:37:29 > 0:37:33'Dave took early retirement from a mobile phone company 15 months ago.
0:37:33 > 0:37:38'He's a keen motorcyclist and is also a black belt in karate.
0:37:38 > 0:37:44'I met up with Dave and Paul to find out if they could martial the art of property development.'
0:37:44 > 0:37:46- Paul, Dave, lovely to meet you both. - Hi.- Hi.
0:37:46 > 0:37:50- Congratulations!- Thank you. - Why did you want to buy this place?
0:37:50 > 0:37:55Well, usual thing, I had taken early retirement, got some money, didn't want it wasting in the bank.
0:37:55 > 0:38:00Paul is a builder, so we put our skills together, buy a house and see how we go from there.
0:38:00 > 0:38:03Right. And had you thought about a collaboration before?
0:38:03 > 0:38:08Well, not really. I bought a house last year which I've done up, but it wasn't from auction.
0:38:08 > 0:38:12And I thought there's obviously more potential in buying something at auction.
0:38:12 > 0:38:16So I thought, seeing as Paul is a builder, I need him to look at it with me.
0:38:16 > 0:38:22And we took him along, had a look at it, and thought we could do this and form a little business, as well.
0:38:22 > 0:38:24What was your job before you retired?
0:38:24 > 0:38:28- I was an O2 technical support type role.- Oh, OK.- Power systems.
0:38:28 > 0:38:32- Nothing to do with houses. - Not at all. How long have you been a builder, Paul?
0:38:32 > 0:38:36- Er, man and boy, about 30 years now. - Right.- So, it's a family firm.
0:38:36 > 0:38:43- It's been going 50-odd years now. - Where did you meet?- We met through motorcycling, really. Long time ago.
0:38:43 > 0:38:48- We've both been keen on bikes over the years. We tend to go abroad once or twice a year now.- Wow!
0:38:48 > 0:38:53# Under neon loneliness
0:38:53 > 0:38:57# Motorcycle emptiness
0:38:57 > 0:39:02'So these two biker mates have teamed up and hope to start a joint property developing business.'
0:39:02 > 0:39:05- So how was the auction for you? - It was fine.
0:39:05 > 0:39:10A bit nerve-racking at first. Never done anything like that before. Been to them before.
0:39:10 > 0:39:16- It was strange because the location was the same room I got married in. - Wow! How long ago was that?
0:39:16 > 0:39:21- Erm, I've got to get this right. - Ooh!- Eight years in March.
0:39:21 > 0:39:26- Eight years, OK.- So, it's been quite an expensive room for me, that. THEY LAUGH
0:39:26 > 0:39:33'Well, I can't say that I'm wed to this off-white, artexed and embossed paper here. It's got to go.
0:39:36 > 0:39:42'So Dave provided the £59,000 purchase price and Paul provides the building experience.
0:39:44 > 0:39:50'But this house wasn't the only purchase Dave made on auction day.'
0:39:50 > 0:39:54- So, did you go with the intention of buying two? - No, we had two lined up to look at,
0:39:54 > 0:39:58depending how much it went for, the first one, and we got it at quite a good price.
0:39:58 > 0:40:03After the first one went, we did a quick calculation and we could still do the second one
0:40:03 > 0:40:05and still have the money to do the work on the houses.
0:40:05 > 0:40:11- So we decided to go for the second, too.- This one is being prioritised, or are you doing the other first?
0:40:11 > 0:40:16We think this one. This is a semi, the other one was a terrace so this has more chance of selling.
0:40:16 > 0:40:19What did you think about the house when you wandered round it?
0:40:19 > 0:40:22Well, the house has got plenty of potential.
0:40:22 > 0:40:27This is obviously a slight problem being a kitchen under a plastic roof.
0:40:27 > 0:40:32- It will have to come down. But apart from that, the rest is fairly positive.- So it's going.- Yes.
0:40:32 > 0:40:35- Not even have it as a conservatory, or anything like that?- BOTH: No.
0:40:35 > 0:40:38So, tell me what you're going to do to sort it out.
0:40:38 > 0:40:43This is coming down. There will be a window pierced in the wall there. The back window will become
0:40:43 > 0:40:48- a pair of French doors.- Right. - The dividing wall is coming down.
0:40:48 > 0:40:54- The kitchen will be going in there and across the back room.- So a new kitchen in there. Bathroom?
0:40:54 > 0:40:59- Bathroom is OK.- It looks like it's been done very recently. It's in very good condition.
0:40:59 > 0:41:02A bit of decoration, new floor covering. That's fine.
0:41:02 > 0:41:06What about outside? A bit of garden that needs sorting out, the fence has come down.
0:41:06 > 0:41:09The only thing on the outside is the front bay.
0:41:09 > 0:41:14We think we need to take the front bay down between the upper level and the ground floor window.
0:41:14 > 0:41:18- It's sagging a bit. - There's too much weight above the bay so we'll take it down
0:41:18 > 0:41:21and rebuild it with a lighter construction.
0:41:23 > 0:41:28'It's thanks to Paul's years of building experience that the sagging bay was spotted.
0:41:28 > 0:41:32'And his trained eye and know-how is something that Dave and Paul
0:41:32 > 0:41:34'hope their new business venture can build on.'
0:41:36 > 0:41:40So, any idea roughly how much it's going to cost?
0:41:40 > 0:41:45Well, yeah, we think we've got £12,000. And we've got another £3,000 as contingency.
0:41:45 > 0:41:49If we find anything that surprises us. So I think that'll be plenty.
0:41:49 > 0:41:54How are you going to cost it out? How are you going to charge your services into it? Or are they free?
0:41:54 > 0:42:01- They'll be coming for free and then we'll be then sorting out the profit at the end.- Right.
0:42:01 > 0:42:03What sort of timescale is it to get this sorted?
0:42:03 > 0:42:08From my point of view, I'll probably need around about three weeks.
0:42:08 > 0:42:12- What? - From my point of view, the actual building side of it, three weeks.
0:42:12 > 0:42:16- That will...- Three weeks?- There's the decorating and the carpet
0:42:16 > 0:42:18but the actual build, three weeks.
0:42:18 > 0:42:23Congratulations. Good luck with it all and we look forward to seeing how you get on.
0:42:23 > 0:42:26- Thank you very much.- Cheers.
0:42:29 > 0:42:33So, David and Paul hatching a new business venture.
0:42:33 > 0:42:38How will they get on sorting this property out and working together for the first time?
0:42:38 > 0:42:40You can find out later in the show.
0:42:43 > 0:42:46It's been a while now since we last saw those properties.
0:42:46 > 0:42:50- Has any work been done or do they look exactly the same? - Let's find out.
0:42:50 > 0:42:54'Time to head back to Chatham in Kent.
0:42:54 > 0:42:58# When you've got friends
0:42:58 > 0:43:00# And neighbours
0:43:00 > 0:43:03# All the world is a happier place
0:43:04 > 0:43:09'Well, old neighbours stroke new property developers Ashley, on the right here,
0:43:09 > 0:43:14'and Steve purchased this Victorian end of terrace for £81,000.
0:43:14 > 0:43:19'But they didn't jump into this refurbishment before doing their research.'
0:43:20 > 0:43:24We viewed houses for auction, we viewed houses through estate agents,
0:43:24 > 0:43:28through the newspapers, our wives were looking through newspapers,
0:43:28 > 0:43:33- any house that was available that was up for renovation, we'd look at it. - We looked at 40, 50 properties.
0:43:33 > 0:43:38But guys, that's fantastic, that's brilliant, that's exactly what you should be doing.
0:43:38 > 0:43:42'So they get a gold star for being armed with information.
0:43:42 > 0:43:48'But will they get a gold star five months later when we return to see how they've got on with the work?
0:43:58 > 0:44:04'With walls taken down, the woodchip chipped away and new fixtures and fittings throughout,
0:44:04 > 0:44:07'the property is nearly finished.
0:44:07 > 0:44:11'All it still needs is a top coat of paint and carpets to go down.
0:44:14 > 0:44:18'The biggest property puzzle here was the bathroom,
0:44:18 > 0:44:21'which could only be accessed via the second bedroom.
0:44:21 > 0:44:24'Surely they didn't leave that as it was.'
0:44:24 > 0:44:28Well, this is the main bedroom, which we've kept in its original format
0:44:28 > 0:44:31except for the fact that this used to be the cupboard,
0:44:31 > 0:44:36which we've now created into a hallway so we can separate the bathroom from both bedrooms.
0:44:36 > 0:44:40But by losing the cupboard, we then took a piece of space above the stairs
0:44:40 > 0:44:43and made ourselves another cupboard there.
0:44:43 > 0:44:50Then obviously we've got the false wall there, and this is the second bedroom,
0:44:50 > 0:44:53which is what we think is still a reasonable size.
0:44:53 > 0:44:57And, again, you've got two doors there, one which comes off the stairs,
0:44:57 > 0:45:03and again, the private door to the bathroom, with the skylight above the door,
0:45:03 > 0:45:07which gives you light in the hallway. We think it works really well.
0:45:07 > 0:45:14'Something else which works much better than before is the newly open-plan kitchen and living room.'
0:45:23 > 0:45:26As you may remember from the first time you came,
0:45:26 > 0:45:29there was a wall dividing the dining room and kitchen which we took out.
0:45:29 > 0:45:33Here we had a chimney breast which we had to take out to square up the kitchen.
0:45:33 > 0:45:40And then we've laid laminated flooring and fitted a fully-fitted kitchen. It's a nice open space.
0:45:40 > 0:45:42It gives it a sense of openness
0:45:42 > 0:45:49where you can actually be, what people like these days, to be able to cook and talk to their company.
0:45:49 > 0:45:51The wall that was here was wasted space.
0:45:51 > 0:45:57It restricted how much cupboard space you had. By taking that wall out, it's made the kitchen so much bigger.
0:46:00 > 0:46:06'They also ditched the dirt that was piling up at the side of the house and put it to excellent use.'
0:46:06 > 0:46:11We cleared, I think, about four tonnes of dirt, but we reused that dirt in our back garden.
0:46:11 > 0:46:15We levelled the garden off and put a small wall round it. We turfed the garden.
0:46:15 > 0:46:19And we put fencing all around the garden now so it gives privacy.
0:46:19 > 0:46:23'Steve and Ashley had planned to spend £8,000 on the renovations.'
0:46:23 > 0:46:26Straight after we said that, we looked at it and decided,
0:46:26 > 0:46:31to fit within that budget, we'd have to do everything cheaply. We didn't want to do it cheaply.
0:46:31 > 0:46:36So we haven't gone too dear, but we've bought some nice fixtures and fittings.
0:46:38 > 0:46:41'So, they ended up spending £9,500 on the work.
0:46:41 > 0:46:45'Achieving the good finish they wanted took five months,
0:46:45 > 0:46:48'rather than the original two to three they had hoped for.
0:46:48 > 0:46:53'But this was the boys' first project together. It proved an excellent learning curve,
0:46:53 > 0:46:56'and not just about property developing.'
0:46:56 > 0:47:01- You think you know someone because you've known them 28 years, but you don't really, do you?- No.
0:47:01 > 0:47:04- He absolutely hates my singing. - THEY LAUGH
0:47:04 > 0:47:08I had to buy a radio because I couldn't stand the singing anymore.
0:47:08 > 0:47:13- And I've realised, wherever Ashley is, doughnuts are not too far away. - THEY LAUGH
0:47:13 > 0:47:16'In need of an un-sugar-coated opinion,
0:47:16 > 0:47:19'we invited two estate agents
0:47:19 > 0:47:21'to look round the property and share their thoughts.'
0:47:22 > 0:47:26They've made an awful lot of changes and they really are nice changes.
0:47:26 > 0:47:30I think they've done a slightly higher spec than I did expect for the area.
0:47:30 > 0:47:33But I think what they will do is get either good tenants
0:47:33 > 0:47:36or a purchaser that will really appreciate it.
0:47:36 > 0:47:39I really like what they've achieved at this property.
0:47:39 > 0:47:42I like the way they've mixed the original features
0:47:42 > 0:47:44with the modern features, as well.
0:47:44 > 0:47:49They've definitely achieved everything that they could to not out-price themselves, really.
0:47:50 > 0:47:55'And speaking of prices, if Ashley and Steve were to rent the property out,
0:47:55 > 0:47:57'what could they expect to earn from that?'
0:47:57 > 0:48:02If they were to rent this then they would get very good tenants because it's such a nice house.
0:48:02 > 0:48:06They would be looking at around £600 per calendar month.
0:48:06 > 0:48:09If we were to put this on the rental market,
0:48:09 > 0:48:13we would look to achieve approximately £625 per calendar month.
0:48:13 > 0:48:15I was hoping for 625, 650,
0:48:15 > 0:48:19- so that's about where we were thinking.- Yeah. - So I'm pleased with that.
0:48:19 > 0:48:25'The lads' intention is to sell the property, though. They bought it at auction for £81,000
0:48:25 > 0:48:28'and spent £9,500 renovating it.
0:48:28 > 0:48:35'Which gives them a total outlay of £90,500. How much could the sale value be?'
0:48:35 > 0:48:38If I was to put this on the market, I'd be looking to market it
0:48:38 > 0:48:43somewhere in the region of £110,000 to £115,000.
0:48:43 > 0:48:49If we were to put this on the sales market, we would look to achieve £115,000.
0:48:50 > 0:48:53'So with their total spend of £90,500,
0:48:53 > 0:48:56'Steve and Ashley could make a pre-tax profit
0:48:56 > 0:49:03'of between £19,500 and £24,500, minus the usual selling expenses.'
0:49:03 > 0:49:06We'd like to achieve that if possible. We'd be happy with that, wouldn't we?
0:49:06 > 0:49:10- That gives us a margin to carry on to the next one. - Very happy with that.- It's good.
0:49:10 > 0:49:15'Anything they want to do before they move on to their next one?'
0:49:15 > 0:49:19- Holiday.- Yeah, I'm going to California in four days' time.
0:49:19 > 0:49:23Steve is getting his preparations done for his daughter's wedding.
0:49:23 > 0:49:27- And then back to the auctions. - Yeah, definitely.
0:49:32 > 0:49:36'Back now to the Lancashire town of Leigh,
0:49:36 > 0:49:39'where two motorcycling mates bought this semi
0:49:39 > 0:49:44'with a kitchen housed in a conservatory for £59,000.
0:49:44 > 0:49:48'Dave, here on the left, who is also a black belt in karate,
0:49:48 > 0:49:51'had recently retired after years working for a telecom company.
0:49:51 > 0:49:57'He provided the finance, while his builder friend Paul was going to do the majority of the work.'
0:49:59 > 0:50:02Taken early retirement and got some money. Didn't want it wasting in the bank.
0:50:02 > 0:50:07- Paul's a builder, so put the skills together.- Right. - Buy a house and see how we go.
0:50:07 > 0:50:11How are you going to cost it out? Are you going to charge for your services?
0:50:11 > 0:50:16They'll be coming for free and we'll be then sorting out the profit at the end.
0:50:16 > 0:50:22'But builder Paul had spotted some structural issues that needed attention.'
0:50:22 > 0:50:25Too much weight above the bay, so I'll take it down
0:50:25 > 0:50:28and basically rebuild it with a lighter construction.
0:50:30 > 0:50:31# Here in my car
0:50:31 > 0:50:35'It's now five months later
0:50:35 > 0:50:39'and the two biker boys have turned up in a couple of sporty four-wheelers.
0:50:41 > 0:50:46'As for the house, well, that's now moved into the property fast lane, as well.
0:50:47 > 0:50:50'The sagging bay window has been rebuilt.
0:50:54 > 0:51:00'At the rear, that white box that looked like a square igloo has melted away.
0:51:04 > 0:51:08'Both the house and garden look so much better.
0:51:09 > 0:51:13'There's new decking, fencing and lawn.
0:51:15 > 0:51:20'Inside, the whole house has been replastered and decorated in neutral tones.
0:51:24 > 0:51:29'The carpeted living room can now be separated from the new kitchen-diner.
0:51:34 > 0:51:42'Extra space was created by removing the corridor that led to the former extension, as Dave explains.'
0:51:42 > 0:51:46This wall was an archway, just an open archway a bit further over.
0:51:46 > 0:51:51After discussions we decided, rather than have a separate wall with a separate kitchen,
0:51:51 > 0:51:56we'd go for this wall reinstated with double doors. This gives a separation between the kitchen and the lounge.
0:51:56 > 0:51:59In the kitchen, the back door was a side door.
0:51:59 > 0:52:03So we bricked that up, giving us an uninterrupted run of worktops.
0:52:03 > 0:52:06The entrance to the igloo was where the sink is now.
0:52:06 > 0:52:09So we bricked that up below a new window above.
0:52:09 > 0:52:13New hob, oven and extractor. We think the kitchen-diner has come out really well.
0:52:13 > 0:52:18The kitchen is a good quality and we're really happy with the result.
0:52:23 > 0:52:29'Upstairs, the three bedrooms have all undergone a complete refurbishment.
0:52:33 > 0:52:37'The bathroom was relatively new,
0:52:37 > 0:52:40'so the only real change in there was the fittings and flooring.
0:52:43 > 0:52:50'But as Paul now explains, it wasn't just the bay window where structural problems were discovered.'
0:52:50 > 0:52:55Well, one or two surprises. One of them was the boards in this room, that room and the rear room,
0:52:55 > 0:52:59basically they were in a shocking state. So we've renewed those completely.
0:52:59 > 0:53:04Unfortunately the boards ran through both rooms and this wall had been built on it.
0:53:04 > 0:53:08So this wall has been taken out and reinstated on top of the new boards.
0:53:08 > 0:53:11We also had a similar problem with the front bay.
0:53:11 > 0:53:15that wall had to come out and be replaced because there was too much weight on the lower bay.
0:53:17 > 0:53:21'Discovering the problems with the floorboards on top of the issue of the bay window
0:53:21 > 0:53:25'could have derailed a less experienced development team.
0:53:25 > 0:53:28'But as Paul has years of building under his belt,
0:53:28 > 0:53:32'the extra work hardly affected the timescale at all.'
0:53:32 > 0:53:37The original timescale was, I think we quoted three weeks to do the work.
0:53:37 > 0:53:42Now, that was hands-on time from Paul, but on the day of the auction, I bought two properties.
0:53:42 > 0:53:45And the first property, we had a buyer from day one.
0:53:45 > 0:53:50So we concentrated on that one. Hence this has gone a lot longer.
0:53:50 > 0:53:54But the time actually hands-on has been about six, seven weeks.
0:53:54 > 0:53:59'Apart from decorating and other cosmetic work, the roof also needed attention.
0:53:59 > 0:54:04'They'd set a budget of £12,000 with a £4,000 contingency.
0:54:04 > 0:54:07'So did they manage to stick to that?'
0:54:07 > 0:54:12We've gone over budget, mainly because we've come across things we didn't know were in here,
0:54:12 > 0:54:15but considering the work we've done, I've no problem with that.
0:54:15 > 0:54:21We've gone to £19,000, but that includes legal fees, selling fees,
0:54:21 > 0:54:24for the future we've allowed so much. So £19,000 is the total.
0:54:24 > 0:54:29'Well, time to get expert opinion from two local estate agents.
0:54:29 > 0:54:33'What will they think of the house now it's completely refurbished
0:54:33 > 0:54:37'and its structural issues have been sorted out?'
0:54:37 > 0:54:40Nicely done, well presented, everything is brand new.
0:54:40 > 0:54:42Decent garden, ready to move into,
0:54:42 > 0:54:46not overlooked at the front or back, you've got the pond at the side.
0:54:46 > 0:54:49They've done a really good job. All new finishings. Kitchen is very good,
0:54:49 > 0:54:52bathroom is nice, white bathroom suite,
0:54:52 > 0:54:54I think the garden's a big selling point,
0:54:54 > 0:54:58what they've done with the decking, and the lawn, as well.
0:54:58 > 0:55:00So it's a good standard of finish, good quality.
0:55:00 > 0:55:04The sitting room is a decent size with a bay. Kitchen-diner is modern.
0:55:04 > 0:55:06Upstairs, the main bedroom is a cracking size,
0:55:06 > 0:55:10bedroom three is average, bedroom two is better than average.
0:55:10 > 0:55:13Location-wise, it's good, as well. It's close to local amenities,
0:55:13 > 0:55:17good access to the motorways and a nice duck pond over the road.
0:55:19 > 0:55:25'So is this project a golden goose or a dead duck? They paid £59,000 at auction
0:55:25 > 0:55:29'and the budget has expanded to £19,000,
0:55:29 > 0:55:33'but they've sensibly factored in other legal expenses and selling costs.
0:55:33 > 0:55:37'So is the property now worth more than £78,000?'
0:55:37 > 0:55:41I'd put this house on the market for around £100,000.
0:55:41 > 0:55:46Erm, I would sell this on for between £100,000 and £110,000.
0:55:46 > 0:55:53'Well, that valuation range would generate a gross profit of between £22,000 and £32,000.
0:55:53 > 0:55:57'And Dave and Paul have already allowed for all other expenses.'
0:55:59 > 0:56:05Well, I'm certainly quite pleased with that. I think, in this market, that's quite a reasonable result.
0:56:05 > 0:56:10Yeah, I think that's fine. That's perhaps slightly more than we were expecting. Quite a result.
0:56:10 > 0:56:13'If they can find a buyer for this house,
0:56:13 > 0:56:18'it will mean that both the properties they bought at auction will have been a success.
0:56:18 > 0:56:22'So, have there been any issues working with an old mate?'
0:56:22 > 0:56:26It's been good. We've known each other a long time so we know each other's foibles.
0:56:26 > 0:56:32Erm, we've obviously had disagreements, but we've compromised and it's worked out well. Pleased.
0:56:32 > 0:56:38Yeah, I think it's done well. Like I say, two houses on the trot and I think we'd do it again. No problem.
0:56:40 > 0:56:44Well, that's it for now. Join us next time for more auction ups and downs.
0:56:44 > 0:56:47For more bungalows, basements, and building sites.
0:56:47 > 0:56:51- You've got it all on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:56:53 > 0:56:57Subtitles by Red Bee Media Ltd
0:56:57 > 0:57:01E-mail subtitling@bbc.co.uk
0:57:01 > 0:57:01.