0:00:02 > 0:00:03Welcome to Homes Under the Hammer.
0:00:03 > 0:00:05Sometimes the property market's quiet.
0:00:05 > 0:00:07Other times, it is positively booming.
0:00:07 > 0:00:12Either way, you need to know what you're purchasing is going to be a good investment.
0:00:12 > 0:00:15Yes. One way to do that is to nip down to the auctions
0:00:15 > 0:00:17and buy your home under the hammer.
0:00:42 > 0:00:46Well, it doesn't matter what kind of property you're looking for,
0:00:46 > 0:00:48you should be able to find it at the auction.
0:00:48 > 0:00:52So here's what our buyers spent their money on on today's programme.
0:00:53 > 0:00:56In Pleasley, Nottinghamshire, it's back to school
0:00:56 > 0:00:58for some driving lessons.
0:00:58 > 0:01:03You're right by the side of this fairly busy dual carriageway.
0:01:03 > 0:01:08I find a mid-terrace in Poplar, East London, with curve appeal.
0:01:08 > 0:01:11I know I get excited, don't I? But look at this curved wall.
0:01:11 > 0:01:13That's so nice.
0:01:13 > 0:01:17And in Carlisle, there's a house that is clearly not all it is cracked up to be.
0:01:17 > 0:01:21But I'd certainly want to hear from a structural engineer before I bought the place.
0:01:23 > 0:01:26All of these properties have been sold at auctions
0:01:26 > 0:01:30and we will find out who bought them and what they paid for them
0:01:30 > 0:01:33- when they went under the hammer. - Sold.
0:01:35 > 0:01:41This is Pleasley in Nottinghamshire, which is close to both Mansfield and Chesterfield.
0:01:41 > 0:01:46Coal was king here, but the local colliery closed in the early 1980s.
0:01:46 > 0:01:51It's now a scheduled ancient monument and being developed into a mining heritage site.
0:01:51 > 0:01:55You can actually see the colliery from the auction lot I'm viewing today.
0:01:55 > 0:01:57Unlike many properties in this area,
0:01:57 > 0:02:00it wasn't destined to house local miners.
0:02:00 > 0:02:04Well, the property I'm here to see was built in the early 1900s
0:02:04 > 0:02:08as the home for the headmaster of the local school.
0:02:08 > 0:02:12It had a guide price of £60,000, which for a detached,
0:02:12 > 0:02:16two-bedroomed house seems quite cheap.
0:02:16 > 0:02:19You know what? From the outside,
0:02:19 > 0:02:23it looks like you're getting a lot of house for the money.
0:02:25 > 0:02:29I think I might have spotted the main reason for that very low guide price.
0:02:31 > 0:02:34Well, the one down side as far as I can see with this house
0:02:34 > 0:02:38is the fact that you're right by the side of this fairly busy dual carriageway.
0:02:38 > 0:02:40So what can you do about that?
0:02:40 > 0:02:43Well, first thing of all, there is a wall here,
0:02:43 > 0:02:46but it's only - what - four foot high?
0:02:46 > 0:02:50So I would straightaway put some kind of extension on this,
0:02:50 > 0:02:51possibly inward.
0:02:51 > 0:02:55You can buy specialist panel that will get rid some of the sound,
0:02:55 > 0:02:59but first of all, try garden panels and see what that does.
0:02:59 > 0:03:03Make sure you get really big ones and hopefully that'll help.
0:03:05 > 0:03:07In fact, you can erect a two-metre
0:03:07 > 0:03:09or 6'7" boundary fence
0:03:09 > 0:03:12without having to go through planning.
0:03:12 > 0:03:17And fencing round the garden, most of which is at the front, will also make it more private.
0:03:17 > 0:03:20But back to the property.
0:03:20 > 0:03:22So what have we got?
0:03:22 > 0:03:24Ooh, quite a nice, impressive kind of entrance here,
0:03:24 > 0:03:28stairs up to the bedrooms. Look at this banister.
0:03:28 > 0:03:33It doesn't look much at the moment because it's been covered in layers of white paint,
0:03:33 > 0:03:37but strip that back - not the easiest of jobs but it would be absolutely beautiful.
0:03:37 > 0:03:41A little bit of an entrance here, through to your front sitting room.
0:03:41 > 0:03:43I love these big windows.
0:03:43 > 0:03:47I have to say, windows potentially equals lots of noise from the road,
0:03:47 > 0:03:51but at least somebody's tried to lose that by this double and treble glazing, in fact.
0:03:51 > 0:03:55But it's a good size, lots of nice little features left here,
0:03:55 > 0:03:59and just straightaway I'm beginning to feel this is a really good, solid house.
0:04:05 > 0:04:08Although originally built for the headmaster, in more recent years,
0:04:08 > 0:04:11this place housed the local school caretaker.
0:04:11 > 0:04:13But when they moved out a year ago,
0:04:13 > 0:04:16the house became surplus to requirements.
0:04:16 > 0:04:20Funnily enough, the most disappointing room is the kitchen.
0:04:20 > 0:04:23I'll come to that. It actually leads off this rear reception room
0:04:23 > 0:04:27and maybe that could be a bit of a saviour to us.
0:04:27 > 0:04:30But this is the kitchen, not very big at all,
0:04:30 > 0:04:34especially if you're going to make this
0:04:34 > 0:04:36into the beautiful family home it could become.
0:04:36 > 0:04:41The units aren't bad, but... What's the options?
0:04:41 > 0:04:44There's a strange little porch area at the back.
0:04:44 > 0:04:48I would consider perhaps extending that slightly.
0:04:48 > 0:04:51You could do that under permitted development rules
0:04:51 > 0:04:54to maybe just extend the kitchen more that way,
0:04:54 > 0:04:57take out that window, build a small single-storey extension.
0:04:57 > 0:05:00The other option is to somehow integrate this room with that room,
0:05:00 > 0:05:03maybe even make that the kitchen and this a utility.
0:05:03 > 0:05:07Well, you'd lose a kind of loungey / sitting room area,
0:05:07 > 0:05:10but you'd create a nice family living space.
0:05:10 > 0:05:12That's what the house needs.
0:05:15 > 0:05:18So upstairs, small landing. It's nice to have that anyway.
0:05:18 > 0:05:20Then a very large bathroom.
0:05:20 > 0:05:24That is suitable for a family. Lovely to see that.
0:05:24 > 0:05:27Then just two bedrooms, but they're good-sized.
0:05:27 > 0:05:29Double there and a double at the front.
0:05:29 > 0:05:31But up here...yeah.
0:05:31 > 0:05:34One of the things you'll definitely have to do before long,
0:05:34 > 0:05:36central heating because these electric things,
0:05:36 > 0:05:41blowers or storage radiators, they need replacing.
0:05:41 > 0:05:44Over to the front of the property and...
0:05:44 > 0:05:47Well, that's not too good - damp.
0:05:47 > 0:05:49However, I don't think it's too serious.
0:05:49 > 0:05:53I think it's more likely to be a bit of penetrating damp.
0:05:53 > 0:05:55The house possibly not being lived in for a while
0:05:55 > 0:05:58and it is actually a solid wall.
0:05:58 > 0:06:02It may not look it from the outside, but there's a way of telling
0:06:02 > 0:06:04and I'm going to show you.
0:06:06 > 0:06:09If you look at the brickwork, if you notice,
0:06:09 > 0:06:11the long way the bricks go in there
0:06:11 > 0:06:13and the short end-on way the bricks go in.
0:06:13 > 0:06:16Look at how many end-on bits there are.
0:06:16 > 0:06:20Normally you'd get one at the end, but here they're all over the place.
0:06:20 > 0:06:22There's one there. There's one there.
0:06:22 > 0:06:25That is the clue that this is a solid wall.
0:06:25 > 0:06:29It's called a Flemish design or a Flemish way of construction
0:06:29 > 0:06:33and that's your clue and it could lead to damp problems. Just something to be aware of.
0:06:33 > 0:06:38In older properties like this, solid walls are common and these are
0:06:38 > 0:06:40much more likely to need a damp course
0:06:40 > 0:06:42than modern-day cavity walls.
0:06:42 > 0:06:45What does a local estate agent think of this place,
0:06:45 > 0:06:47that had a guide price of £60,000?
0:06:47 > 0:06:51Is it time for lines and detention, or is it top of the class?
0:06:51 > 0:06:54There's a quite a lot of ways you could add value.
0:06:54 > 0:06:56It requires a general scheme of modernisation -
0:06:56 > 0:06:59new kitchen, new bathroom, new central-heating system.
0:06:59 > 0:07:00That kind of thing.
0:07:00 > 0:07:05But there's some nice old features to work with, put a modern spin on it and make a really nice house.
0:07:05 > 0:07:09Worth a small kitchen extension. Nothing too great
0:07:09 > 0:07:13because there's not an enormous outside space and if you do too big an extension
0:07:13 > 0:07:15you're just reducing that amount further.
0:07:20 > 0:07:23If it's a single storey, under permitted development
0:07:23 > 0:07:27you can extend up to four meters at the rear of a detached property
0:07:27 > 0:07:29without getting planning permission.
0:07:29 > 0:07:32If the property is renovated to a good standard,
0:07:32 > 0:07:35I could see this property on the market for £115,000 to £120,000.
0:07:36 > 0:07:39Yes, there's a bit of damp to sort out
0:07:39 > 0:07:41and yes, the kitchen could do with improving
0:07:41 > 0:07:45and yes, in general it needs a bit of a tidying up,
0:07:45 > 0:07:47but you've got a lot of house for the money.
0:07:47 > 0:07:49Let's see who fancied it when it went under the hammer.
0:07:49 > 0:07:54Lot 23, needs a bit of upgrading and improvement, ladies and gentlemen.
0:07:54 > 0:07:57Start me where you like. 50.
0:07:57 > 0:07:59£50,000, opening bid.
0:07:59 > 0:08:02At £50,000, it's a low opener. 51 I've got.
0:08:02 > 0:08:03At 51, 52.
0:08:03 > 0:08:0752,000. 53 is bid. 54.
0:08:07 > 0:08:0955,000. 56.
0:08:09 > 0:08:12At £55,000, a disappointing price.
0:08:12 > 0:08:16At 55,500. 56 on this side.
0:08:16 > 0:08:1956,500. 57,000.
0:08:19 > 0:08:2157,500.
0:08:21 > 0:08:2358,000.
0:08:23 > 0:08:2458,500.
0:08:24 > 0:08:26£59,000.
0:08:26 > 0:08:2859,500.
0:08:28 > 0:08:29At 60.
0:08:29 > 0:08:32£60,000. 60,500.
0:08:32 > 0:08:3461.
0:08:34 > 0:08:3661,500.
0:08:36 > 0:08:3762.
0:08:37 > 0:08:3962,500.
0:08:39 > 0:08:4063 is bid.
0:08:40 > 0:08:4163,500.
0:08:41 > 0:08:4264.
0:08:42 > 0:08:4464,500.
0:08:44 > 0:08:4665, sir. 65,000.
0:08:46 > 0:08:50At £65,000, for the first time.
0:08:50 > 0:08:51For the second time.
0:08:51 > 0:08:53Third and last chance.
0:08:53 > 0:08:55Sold at 65,000. Thank you.
0:08:58 > 0:09:01The winning bid was made by Nottinghamshire couple
0:09:01 > 0:09:04Chris and an extremely relieved Jane.
0:09:04 > 0:09:07The husband-and-wife team bought their current house at auction
0:09:07 > 0:09:10and this is their second purchase under the hammer.
0:09:10 > 0:09:14I met them at the schoolhouse to hear what lessons they'd learnt.
0:09:14 > 0:09:15Lovely to meet you both.
0:09:15 > 0:09:18- Pleased to meet you. - Congratulations.
0:09:18 > 0:09:19A lot of house for the money.
0:09:19 > 0:09:22Pretty much. What a bargain.
0:09:22 > 0:09:28Is it a bargain around these parts or is this the sort of thing...?
0:09:28 > 0:09:30It's pretty cheap - two-bed detached house.
0:09:30 > 0:09:33You can't get a lot for £65,000.
0:09:33 > 0:09:38- No, but it's really nice. Really solid.- It's a good-built house.
0:09:38 > 0:09:40- So why did you want to buy it? - The price.
0:09:40 > 0:09:44It needed a lot of work doing to it. It suits us down to the ground.
0:09:44 > 0:09:47- Tell me a bit more about you two. - I'm a plumber.
0:09:47 > 0:09:51My wife works for the Nottinghamshire Police.
0:09:51 > 0:09:53We both like doing renovations.
0:09:53 > 0:09:57Our last property was bought at auction and we've done that up.
0:09:57 > 0:09:59Now we're selling that
0:09:59 > 0:10:02and moving on to pastures new, which is this property.
0:10:02 > 0:10:05- Is this for you, then?- This is where we're going to live, yes.- Oh great.
0:10:05 > 0:10:08The fairly busy road - is that an issue?
0:10:08 > 0:10:11That's an issue. We're going to put up a six-foot fence
0:10:11 > 0:10:14around the perimeter as of tomorrow
0:10:14 > 0:10:18and then probably plant it with shrubs to deaden some of the noise.
0:10:18 > 0:10:23It's not ideal, but we knew about the road.
0:10:23 > 0:10:26Yeah. And you can always contemplate triple glazing.
0:10:26 > 0:10:29- Absolutely.- Yep.
0:10:32 > 0:10:36'In fact, Jane and Chris didn't have plans to start another project so soon.
0:10:36 > 0:10:38'They'd just put their bungalow on the market
0:10:38 > 0:10:43'and hadn't even started looking, but then they spotted this property
0:10:43 > 0:10:47'and managed to view it just three days before the auction.'
0:10:47 > 0:10:51Did you start the mortgage process before you went to the auction?
0:10:51 > 0:10:52No.
0:10:52 > 0:10:53HE GASPS
0:10:53 > 0:10:56No. Well, pretty much...
0:10:56 > 0:11:01We begged, stole and borrowed with me mum and me cousin to do this for the deposit.
0:11:01 > 0:11:05The family lent us some, well, all the money for the deposit.
0:11:05 > 0:11:10And we rang up and had to do some additional borrowing over the phone
0:11:10 > 0:11:15the night before the auction to get the full deposit together,
0:11:15 > 0:11:20the 25% deposit for the mortgage and then we went to auction and bought.
0:11:20 > 0:11:23You knew when you went to auction you could get a mortgage?
0:11:25 > 0:11:29Kind of. The mortgage adviser knew we wanted a mortgage,
0:11:29 > 0:11:32- but nothing was carved in stone. - Mm-hm!
0:11:32 > 0:11:35You know that's really dangerous ground you were treading on there?
0:11:35 > 0:11:41- Absolutely. We could lose our deposit.- Yeah and more.- £8,000.
0:11:41 > 0:11:45Blimey. Not a good idea, I'd just like to point out.
0:11:45 > 0:11:48You need to get your finances in place before you go to the auction.
0:11:48 > 0:11:50Absolutely.
0:11:50 > 0:11:52HE LAUGHS
0:11:59 > 0:12:02'Jane and Chris took a financial risk,
0:12:02 > 0:12:05'but luckily for them, their mortgage was approved.
0:12:05 > 0:12:08'Now they have just got to start the process
0:12:08 > 0:12:11'of turning this old schoolmaster's house into a home.'
0:12:11 > 0:12:15- What are you planning to do to it? - I plan to take out this wall,
0:12:15 > 0:12:19make it into one large living room, living / dining room,
0:12:19 > 0:12:22extend the kitchen, given we get the bungalow sold,
0:12:22 > 0:12:24new bathroom and redecorate.
0:12:24 > 0:12:27What's the time scale for that in terms of what you are going to do?
0:12:27 > 0:12:30A lot of it depends on the sale of the bungalow.
0:12:30 > 0:12:32If it sells quickly, six months.
0:12:32 > 0:12:35- And if it doesn't? - A year, maybe.
0:12:35 > 0:12:39- So you are reliant on your other place selling?- Pretty much.
0:12:39 > 0:12:43We have got a very small amount of money to get initial things done,
0:12:43 > 0:12:46central heating, boundary fence.
0:12:46 > 0:12:51The fence will be started tomorrow. The perimeter fence will probably take me two or three days
0:12:51 > 0:12:54and central heating will be in before the end of the week.
0:12:54 > 0:12:57What kind of budget have you got for the first part?
0:12:57 > 0:12:58About £4,000.
0:12:58 > 0:13:02- Including putting central heating in?- Yes.
0:13:02 > 0:13:04- It will be tight.- Best of luck.
0:13:04 > 0:13:07Congratulations, you have got a lovely house.
0:13:07 > 0:13:10I look forward to seeing how you get on sorting it out.
0:13:10 > 0:13:12- Thank you very much, Martin. - Good luck with it.
0:13:12 > 0:13:16Well, Chris and Jane are clearly delighted with their new home
0:13:16 > 0:13:19and absolutely quite right they should be.
0:13:19 > 0:13:22Still, living in a property while you're doing it up
0:13:22 > 0:13:25is never easy and when the budget is so tight,
0:13:25 > 0:13:28I wonder if there are going to be difficult times ahead?
0:13:28 > 0:13:31I hope not. You can find out how they get on later in the show.
0:13:35 > 0:13:37Today's auction lot is in East London
0:13:37 > 0:13:40in a place called Poplar, fantastic transport links,
0:13:40 > 0:13:46good local amenities and affordable property attracts buyers and investors to this area
0:13:46 > 0:13:50and with the average property costing £300,000,
0:13:50 > 0:13:53popular Poplar is on my property radar.
0:13:53 > 0:13:54# Red alert... #
0:13:54 > 0:14:01'With Canary Wharf on the doorstep and fleets of buses available to take you here, there and everywhere,
0:14:01 > 0:14:04'why wouldn't you consider this part of East London?'
0:14:04 > 0:14:10The guide for today's auction lot was set at £185,000.
0:14:10 > 0:14:12So let's have a look at it.
0:14:12 > 0:14:14Well, here it is, it is a three-bed property.
0:14:14 > 0:14:17It does look tired and dated from the outside,
0:14:17 > 0:14:20but it does retain those beautiful Victorian features.
0:14:20 > 0:14:25There is the original sash windows, you have got exposed brickwork here, really nice to see.
0:14:25 > 0:14:29Let's go in and see what it is like on the inside.
0:14:29 > 0:14:31'The housing stock in this area is varied
0:14:31 > 0:14:37'and you can zip up through the years in one fell swoop,
0:14:37 > 0:14:42'from the 1900s to the 1960s, but enough of flower power,
0:14:42 > 0:14:46'let's get back to the property I'm actually here to view.'
0:14:46 > 0:14:50Well, it's certainly a lot bigger on the inside.
0:14:50 > 0:14:53It's quite surprising when you walk through a front door, you never know what you're going to see.
0:14:53 > 0:14:57You've got a beautiful big old staircase there.
0:14:57 > 0:15:02You can imagine what this will be like once it's painted. It is actually very welcoming.
0:15:02 > 0:15:06I know I get excited, don't I? But look at this curved wall.
0:15:06 > 0:15:10That's so nice and it looks amazing from out here as well.
0:15:10 > 0:15:11This is the lounge.
0:15:11 > 0:15:16You've got some interesting cornicing up there, which is quite nice.
0:15:16 > 0:15:18I'm not sure about that,
0:15:18 > 0:15:22I quite like the exposed brick work on the outside,
0:15:22 > 0:15:25but I don't think it looks too hot on the inside.
0:15:25 > 0:15:28I did check out that was a flat-roofed area above the bay
0:15:28 > 0:15:31so I think a bit of water has been penetrating in through that,
0:15:31 > 0:15:35I wouldn't worry too much about it, but I'd get it looked at.
0:15:35 > 0:15:36You have this lovely window area.
0:15:36 > 0:15:41Maybe you'd need to change these windows because they look old.
0:15:41 > 0:15:42But a good room.
0:15:42 > 0:15:48I'm sure this house has got a certain amount of character and I want to explore.
0:15:48 > 0:15:54# In the sunshine of your love... #
0:15:54 > 0:15:56'Its all very yellow here,
0:15:56 > 0:15:59'but colours aside, the proportions are cracking
0:15:59 > 0:16:01'and these two good-sized reception rooms
0:16:01 > 0:16:05'could be knocked together to make a knockout downstairs area.'
0:16:07 > 0:16:11There really is such wonderful space everywhere.
0:16:11 > 0:16:14You've got lovely large windows in this room,
0:16:14 > 0:16:18but no kitchen, which is what I would've expected in here.
0:16:18 > 0:16:21You can see there is a really tatty old bathroom here
0:16:21 > 0:16:24and it needs loads of attention, but a bit of information for you,
0:16:24 > 0:16:27this property has been arranged as two flats,
0:16:27 > 0:16:29but it's not been legally converted
0:16:29 > 0:16:32so if you wanted to keep the original layout as two flats,
0:16:32 > 0:16:34you would have to apply for planning permission.
0:16:34 > 0:16:37It will probably be more financially profitable,
0:16:37 > 0:16:42but I would love to get my hands on this place and turn it into a family home.
0:16:42 > 0:16:46It could look absolutely stunning with the old period features that are left here,
0:16:46 > 0:16:49but I know it's not the most lucrative of options.
0:16:49 > 0:16:51'There's plenty of unused space outside
0:16:51 > 0:16:54'so you could think about extending there
0:16:54 > 0:16:58'if you wanted to gain extra room for a ground-floor flat.
0:16:58 > 0:17:03'There's a fair-sized garden at the back, but there's one more thing that is well proportioned -
0:17:03 > 0:17:05'this imposing wall, it's huge
0:17:05 > 0:17:09'but does shield you from the busy A13, so it serves a purpose.
0:17:09 > 0:17:14'Back inside and up the yellow stairs to the first floor...'
0:17:14 > 0:17:17Aha! So here's the kitchen.
0:17:17 > 0:17:19Nothing in this house is where you'd expect it to be.
0:17:19 > 0:17:22So let's think about the money aspect.
0:17:22 > 0:17:26What kind of return could you expect here?
0:17:26 > 0:17:28The big money spinner is of course conversion.
0:17:28 > 0:17:33If you were able to obtain permission to legally call these two flats,
0:17:33 > 0:17:37then you could sell them on for almost £200,000 apiece.
0:17:37 > 0:17:40The less lucrative option, as I said downstairs,
0:17:40 > 0:17:43would be to refurbish this and sell on as a three-bed house.
0:17:43 > 0:17:47The figures are not as appealing, but there is still money to be made
0:17:47 > 0:17:50if you do stick to that strict budget.
0:17:50 > 0:17:55'A family home could achieve £300,000 top whack,
0:17:55 > 0:17:58'but with a guide price of 185,000,
0:17:58 > 0:18:02'your biggest profit here would clearly some from flats.'
0:18:02 > 0:18:08# Sunshine came softly through my window today... #
0:18:08 > 0:18:11'On this floor, the whacky layout continues
0:18:11 > 0:18:16'so leading off from the kitchen, there's the shower room and toilet. Lovely.
0:18:16 > 0:18:19'As well as the kitchen with adjoining shower,
0:18:19 > 0:18:24'there are two other really good-sized rooms on this level.
0:18:24 > 0:18:27'With a guide price of £185,000,
0:18:27 > 0:18:30'for a house from which you can see the financial area of the City,
0:18:30 > 0:18:33'what does an estate agent make of it?'
0:18:33 > 0:18:35The property obviously requires a lot of work,
0:18:35 > 0:18:40besides the aesthetics, which need to be addressed
0:18:40 > 0:18:45and the layout of the property is not of any use to anyone at the moment.
0:18:45 > 0:18:48'What about the fact that this mid-terrace house
0:18:48 > 0:18:51'is very nearly two flats, but not quite?'
0:18:53 > 0:18:58Because they have had no planning permission when they have converted the units,
0:18:58 > 0:19:01in order to have them used as two separate units,
0:19:01 > 0:19:03planning permission must first be obtained,
0:19:03 > 0:19:08then the building regulations necessary to go with it must also be taken in place.
0:19:08 > 0:19:13# And it was all yellow... #
0:19:13 > 0:19:16I think you'll agree there is some pluses and minuses with this property.
0:19:16 > 0:19:20It's tired and dated, but there's certainly money to be made here,
0:19:20 > 0:19:23especially if you're able to secure the planning
0:19:23 > 0:19:25for two one-bedroom flats.
0:19:25 > 0:19:28Let's see who fancied this opportunity as we go to auction.
0:19:28 > 0:19:33So move on to lot 56, mid-terraced two-storey house,
0:19:33 > 0:19:37arranged as two non-self-contained flats.
0:19:37 > 0:19:41170, 170, right at the back.
0:19:41 > 0:19:44170, 175, 180,
0:19:44 > 0:19:46185, another spot.
0:19:46 > 0:19:51185, 190, 195, 200,
0:19:51 > 0:19:52201, 202.
0:19:55 > 0:19:59210, 210, 211 anywhere? 211, 212,
0:20:02 > 0:20:06215, 216, 217?
0:20:06 > 0:20:08218?
0:20:09 > 0:20:12218, 219, 220,
0:20:12 > 0:20:17221, 221, first time, second time,
0:20:17 > 0:20:19223 by the door, yeah?
0:20:19 > 0:20:21223, 224.
0:20:21 > 0:20:24224 at the back, 225,
0:20:24 > 0:20:28226, new spot, 226, 227,
0:20:30 > 0:20:32228, 229,
0:20:34 > 0:20:39230, 230, 231, 230 at the back.
0:20:39 > 0:20:41First time, second time,
0:20:41 > 0:20:44third and last time. Have you all done?
0:20:46 > 0:20:48'Well, we missed him at the auction,
0:20:48 > 0:20:52'but caught up with Steve, the successful bidder at his new purchase.
0:20:52 > 0:20:54'He runs his own painting and decorating firm
0:20:54 > 0:20:57'and Martin has met him on the show before.
0:20:57 > 0:21:01'He purchased a substantial property in Hastings and transformed it.
0:21:01 > 0:21:04'Will he perform the same magic on this one?'
0:21:04 > 0:21:06- Steve, congratulations. - Thank you.
0:21:06 > 0:21:10Here you are buying another house. It's obviously going well?
0:21:10 > 0:21:11It's been going good.
0:21:11 > 0:21:14So tell us about why you want to buy this house in Poplar?
0:21:14 > 0:21:19When I come round to look at it, it was down as two flats.
0:21:19 > 0:21:23But it is sort of illegal, but there is two meters in for each.
0:21:23 > 0:21:26I found out it was shared with just the bathroom
0:21:26 > 0:21:29and I took a gamble that I would get the planning
0:21:29 > 0:21:33so I could make it into two legal one-bedroom luxury flats,
0:21:33 > 0:21:39because the profit is a little bit more than keeping it as a three-bedroom.
0:21:39 > 0:21:41It is a gamble really that I get the planning.
0:21:41 > 0:21:44If you don't get planning permission for two flats,
0:21:44 > 0:21:47will you be happy to keep this as a family home
0:21:47 > 0:21:51- and convert it into a family home? - That's what we will do.
0:21:51 > 0:21:55- It won't be a lucrative, though, will it?- We'll still make profit on the house...
0:21:55 > 0:21:59we'll still the value of return that we wanted.
0:21:59 > 0:22:02How much research have you done? Have you spoken to the council?
0:22:02 > 0:22:06Have you looked up and down the road to see how many houses have done that?
0:22:06 > 0:22:11There is at least five that have been converted. Next door is into one-bedroom flats.
0:22:11 > 0:22:14There are three-bedroom houses, four-bedroom houses,
0:22:14 > 0:22:18so there is plenty of family houses here anyway,
0:22:18 > 0:22:24it is just literally, been in touch with the planning, got to wait about eight weeks.
0:22:24 > 0:22:30I only got the keys yesterday for this place so I haven't had drawings made up,
0:22:30 > 0:22:35but I come in with the architects and I'm just letting him get on with it.
0:22:35 > 0:22:39'And while the plans are being considered by the planners,
0:22:39 > 0:22:43'Steve's not planning to let the grass grow under his feet.'
0:22:43 > 0:22:47I can't wait, but I'll still be working on it anyway, all the windows can come out.
0:22:47 > 0:22:50I have got brickwork to be done, problem with the drain out there,
0:22:50 > 0:22:53all the plaster will come off the walls.
0:22:53 > 0:22:56Depending on the plans we get back, the chimney stacks will probably go,
0:22:56 > 0:23:00if they are in the flats, just to open it all up for everybody.
0:23:00 > 0:23:02All floorboards will have to come up.
0:23:02 > 0:23:05I have got a little bit of work before we start finishing.
0:23:09 > 0:23:15'If it all gets too much, at least he can pop round to his family for a chat and a cuppa.
0:23:15 > 0:23:19I did my early schooling in Poplar. I was born up the road, Stepney.
0:23:19 > 0:23:24I've got a lot of friends in the area. I lived in Canning Town, over the water there
0:23:24 > 0:23:26and Plaistow so basically it is me home.
0:23:26 > 0:23:31I'm 49 now. I've lived in the area for 43 years.
0:23:31 > 0:23:33- And where are you living now?- Epsom.
0:23:33 > 0:23:35So really this is like a homecoming?
0:23:35 > 0:23:38I am never away from here, all my family is here,
0:23:38 > 0:23:41basically a homecoming, I suppose.
0:23:41 > 0:23:44'There really is no place like home,
0:23:44 > 0:23:47'especially if you're trying to buy property to make profit.
0:23:47 > 0:23:51'Knowledge of an area is worth its weight in gold.'
0:23:51 > 0:23:53So tell me what your budget is.
0:23:53 > 0:23:55If I convert it into two flats,
0:23:55 > 0:23:59the budget for the whole house was 35 just to leave it as a three-bedroom house,
0:23:59 > 0:24:04but into flats, extra kitchen, extra bathroom,
0:24:04 > 0:24:08it will be knocking on near enough 45.
0:24:08 > 0:24:12I'm so excited for you and I can't wait to find out the outcome. Good luck.
0:24:12 > 0:24:14- Thank you, Lucy.- Thank you.
0:24:14 > 0:24:16Steve has come home.
0:24:16 > 0:24:19I always advise people to buy in an area they know well.
0:24:19 > 0:24:22Well, I think Steve knows Poplar like the back of his hand.
0:24:22 > 0:24:25Is this going to be enough to make it a success though?
0:24:25 > 0:24:30How is he going to get on with the planning permission to turn this into flats?
0:24:30 > 0:24:33You can find out what happens later in the programme.
0:24:33 > 0:24:37'Coming up in Carlisle, is it love at first sight?'
0:24:37 > 0:24:40No, it isn't. Look at this!
0:24:41 > 0:24:43It is disastrous!
0:24:43 > 0:24:49'In popular Poplar, is it tears before sale time for Steve?'
0:24:49 > 0:24:53I'm not going to cry about it because at the end of the day, it had to be done.
0:24:55 > 0:24:57But first, we return to Nottinghamshire
0:24:57 > 0:24:59for some instruction.
0:24:59 > 0:25:02I say go for it, but don't just live in it.
0:25:10 > 0:25:15We're back in Pleasley, Nottinghamshire to see how plumber Chris and his wife Jane
0:25:15 > 0:25:19got on with their ex-schoolhouse by the very busy road.
0:25:19 > 0:25:22Is it a teacher's pet or a must try harder?
0:25:23 > 0:25:26Inside, the two-bedroomed house was very dated and neglected.
0:25:26 > 0:25:30No-one had lived there for a year and it showed -
0:25:30 > 0:25:32damp patches, paper peeling off walls,
0:25:32 > 0:25:36but there were some good features buried under years of paint.
0:25:37 > 0:25:40Chris and Jane had put their previous bungalow on the market
0:25:40 > 0:25:44and bought this property before they had even sorted out their finances.
0:25:44 > 0:25:50Family lent us some of the money for the deposit, well, all of the money for the deposit and...
0:25:50 > 0:25:54- then we went to auction. - You knew when you went to the auction you couldn't get a mortgage?
0:25:56 > 0:26:00Kind of. The mortgage adviser knew we wanted a mortgage,
0:26:00 > 0:26:02but nothing was carved in stone.
0:26:02 > 0:26:06Blimey. NOT a good idea, I'd just like to point out.
0:26:06 > 0:26:09You need to get your finances in place before going to the auction!
0:26:09 > 0:26:13The couple had scraped the cash together to buy this two-bedroomed house
0:26:13 > 0:26:17for £65,000 and had a very tight cash budget
0:26:17 > 0:26:21of £4,000 for refurbishment.
0:26:21 > 0:26:23Superman Chris planned to work all day at his job
0:26:23 > 0:26:27and every evening and weekend here.
0:26:27 > 0:26:30He thought it would take them around three months to finish,
0:26:30 > 0:26:35but if they sold their bungalow they'd have more cash to spend here.
0:26:35 > 0:26:38We've returned nine months later to see if Chris and Jane
0:26:38 > 0:26:40are top of the class or in detention.
0:26:46 > 0:26:49Outside, there are great improvements.
0:26:49 > 0:26:54The huge trees have gone and the old house is now much more protected
0:26:54 > 0:26:55from its A-road neighbour.
0:26:58 > 0:27:02And that unwelcoming living room has become the heart of this new home.
0:27:02 > 0:27:07It has doubled in size as Chris and Jane have turned two good-sized
0:27:07 > 0:27:10downstairs rooms into one huge sitting room-cum-dining room.
0:27:13 > 0:27:16In this room, we have, erm...
0:27:16 > 0:27:20taken down the main wall, divided it into two rooms.
0:27:20 > 0:27:25Good reason is because they built the wall on a timber beam
0:27:25 > 0:27:29and over the period of 100 years, the timber had crushed and the wall
0:27:29 > 0:27:33had cracked so a necessity, really, of taking down the wall.
0:27:33 > 0:27:38We've also bricked up the kitchen doorway to open up
0:27:38 > 0:27:42a new doorway in the hallway to lead into the kitchen.
0:27:42 > 0:27:45Chris and Jane had planned to build an extension to the kitchen
0:27:45 > 0:27:49and although that hasn't happened, they have managed to turn
0:27:49 > 0:27:53the galley kitchen into a much more useful space.
0:27:53 > 0:27:56We've completely ripped the kitchen out and added new units,
0:27:56 > 0:27:59a work surfaces and tiled, moved the washer
0:27:59 > 0:28:03and put it to the back of the kitchen, that's more like a bit
0:28:03 > 0:28:07of a laundry area so we've got more units in the kitchen area itself.
0:28:07 > 0:28:11The refurbishment of this house, depended on Chris and Jane
0:28:11 > 0:28:14selling their bungalow, which they failed to do!
0:28:16 > 0:28:19It did put us under a reasonable amount of strain.
0:28:19 > 0:28:23We'd planned at having free cash to do all the project.
0:28:23 > 0:28:26Because we hadn't sold our property that we was in before,
0:28:26 > 0:28:30we had to sell the car and sell the caravan
0:28:30 > 0:28:32to raise some cash.
0:28:32 > 0:28:37I think we have managed to stay £14,000, £14,500...
0:28:37 > 0:28:42Although cash was in short supply, energy and enthusiasm weren't.
0:28:42 > 0:28:46The couple tackled all the problems this roadside schoolhouse presented.
0:28:46 > 0:28:51Since you were last here, we've completely taken the house back to brick and replastered,
0:28:51 > 0:28:55redecorated and completely overhauled the garden.
0:28:55 > 0:28:59When we started the property, we moved straight in.
0:28:59 > 0:29:01Dust and everything.
0:29:01 > 0:29:05I think you've got to have a lot of patience with each other as well.
0:29:05 > 0:29:07Which we have, luckily! SHE LAUGHS
0:29:07 > 0:29:09- We make a good team.- We do.
0:29:11 > 0:29:15Upstairs, the bathroom is unrecognisable.
0:29:18 > 0:29:23And just how do you do that if you're a bit strapped for cash?
0:29:23 > 0:29:25The bath and the shower enclosure,
0:29:25 > 0:29:28they're green, they're reused.
0:29:28 > 0:29:32The shower enclosure had been in a job I'd done. It'd been in a year
0:29:32 > 0:29:34and I took it out and I refitted it here.
0:29:34 > 0:29:36The bathroom probably only cost us £500.
0:29:36 > 0:29:40It was pretty much brand-new so it seemed a shame to skip it, really.
0:29:40 > 0:29:45Canny Chris and Jane have spent their tight budget wisely.
0:29:45 > 0:29:48Elsewhere, upstairs, the master bedroom
0:29:48 > 0:29:50no longer features mould and damp.
0:29:50 > 0:29:53It's now a warm and welcoming retreat,
0:29:53 > 0:29:57and the good-sized second bedroom has also had a thorough facelift.
0:29:57 > 0:30:02But if anything was going to hamper the sale of this property, it was the outside space.
0:30:02 > 0:30:06The house is right beside a busy and noisy road.
0:30:06 > 0:30:10In the garden, one of the main things we've done is put a new fence
0:30:10 > 0:30:13to the property. It blanks off the road.
0:30:13 > 0:30:17We've also taken out a row of conifers
0:30:17 > 0:30:19that were literally pulled out
0:30:19 > 0:30:23with a van to open up the garden to make it more of a usable area.
0:30:23 > 0:30:27We've put a driveway in with limestone chippings
0:30:27 > 0:30:31and we've turfed the other part of the garden
0:30:31 > 0:30:34to bring it more into the property.
0:30:34 > 0:30:38Chris and Jane have begged, borrowed and worked their fingers
0:30:38 > 0:30:42to the bone to bring this old schoolhouse back to life.
0:30:42 > 0:30:45They bought it for £65,000
0:30:45 > 0:30:48and spent £14,500 on refurbishment,
0:30:48 > 0:30:51bringing their total outlay to £79,500.
0:30:51 > 0:30:54Time to find out what grade two local property experts
0:30:54 > 0:30:56will give their work.
0:30:56 > 0:30:59First impressions of the property are very good.
0:30:59 > 0:31:01It's been finished to a very high standard internally
0:31:01 > 0:31:04and a lot of work has been done outside as well.
0:31:04 > 0:31:07This property is best suited for the resale market.
0:31:07 > 0:31:08If you rent it out,
0:31:08 > 0:31:11you could find in six to 12 months' time
0:31:11 > 0:31:15that it's not in excellent condition and the finish that you've got now that really adds to the value
0:31:15 > 0:31:17might not quite be there.
0:31:17 > 0:31:20How much could the property sell for?
0:31:22 > 0:31:27Resale, from what I have seen today, I would be looking £110 to £115,000
0:31:27 > 0:31:29at this moment in time.
0:31:29 > 0:31:34If this property went on the open market, I'd expect it to achieve in the region of £110 to £115,000.
0:31:34 > 0:31:36Those valuations would give the couple
0:31:36 > 0:31:39a profit of between £30,500 and £35,500
0:31:39 > 0:31:42before costs and expenses.
0:31:42 > 0:31:46What might they achieve if the property was put up for rent?
0:31:51 > 0:31:56From the rental point of view, I would be looking £450 to £475 per calendar month.
0:31:56 > 0:32:00I would expect it to achieve in the region of £500 to £550 per calendar month.
0:32:00 > 0:32:03- I think we're happy with that.- Yeah!
0:32:03 > 0:32:06Since they struggled to finance this one,
0:32:06 > 0:32:10what's on their crib sheet for any other property investors?
0:32:11 > 0:32:14I say go for it, but just don't live in it.
0:32:14 > 0:32:17And make sure you've got the funds to complete the project.
0:32:17 > 0:32:19The financial burden can be quite testing
0:32:19 > 0:32:21if you've not got the funds.
0:32:23 > 0:32:27This is historic Carlisle, with its great medieval fortress,
0:32:27 > 0:32:31castle and semi-intact city walls.
0:32:31 > 0:32:34This was once the most besieged place in the British Isles.
0:32:34 > 0:32:38So will today's property be a secure fortress, or a battle-scarred bomb site?
0:32:38 > 0:32:41Well, the property I'm here to see is just a few minutes
0:32:41 > 0:32:45from the city centre right on this fairly busy main road,
0:32:45 > 0:32:47although you do have a bus route,
0:32:47 > 0:32:49obviously which is good news.
0:32:49 > 0:32:52It looks reasonably solid from the outside,
0:32:52 > 0:32:54maybe not up to medieval standards,
0:32:54 > 0:32:58but it's a two-bed terrace with a yard at the back. Let's take a look.
0:32:58 > 0:33:02The property went to auction with a guide price of £50,000 to £60,000.
0:33:06 > 0:33:09Well, blimey, sticky door and what's more important,
0:33:09 > 0:33:13not a double-glazed door, and I doubt...
0:33:13 > 0:33:16No, thin double glazing. Clearly with the noise from that road,
0:33:16 > 0:33:22the first thing I'd want to do is put a really thick double-glazed door in there
0:33:22 > 0:33:25and double-, if not triple-glazing in the windows.
0:33:25 > 0:33:28But this is your lounge so again straight off the road there,
0:33:28 > 0:33:33lots of wind and noise and cold coming in so that's not ideal.
0:33:33 > 0:33:36The room itself is what it is. It's not a bad-sized space, I suppose.
0:33:36 > 0:33:40Somebody's gone to a bit of trouble to put a slightly new fire in there,
0:33:40 > 0:33:43but I'd rather see an original open fire.
0:33:43 > 0:33:46So all in all, let's hope it gets better.
0:33:48 > 0:33:53Well, actually, on the surface, it does!
0:33:53 > 0:33:54The kitchen, not too bad.
0:33:54 > 0:33:59These units were not the most expensive units in the world, but at least they are reasonably new,
0:33:59 > 0:34:02and, you know, you could almost live in this.
0:34:02 > 0:34:04It's not a bad-sized space either, but it's unusual
0:34:04 > 0:34:08that the ceiling is lower than the ceiling in the front room there.
0:34:08 > 0:34:12Views out over the rear little courtyard, and then,
0:34:12 > 0:34:15as is often the case with these kind of properties,
0:34:15 > 0:34:17you come though here, back door there
0:34:17 > 0:34:21and then this is your loo and your bath.
0:34:21 > 0:34:22This is it.
0:34:22 > 0:34:26So in order to access it from the bedrooms, down the stairs,
0:34:26 > 0:34:31through the lounge, through the kitchen and here you have it.
0:34:31 > 0:34:34Mind you, with this kind of property, it is what you expect,
0:34:34 > 0:34:36so it doesn't really matter.
0:34:36 > 0:34:41Changing the layout is never easy in these classic two-up, two-down terrace cottages.
0:34:41 > 0:34:45The bathroom is already in an extension at the back
0:34:45 > 0:34:47of the original property.
0:34:47 > 0:34:50From out in the yard you can see work is needed,
0:34:50 > 0:34:53but it could be quite pleasant out here if the wall
0:34:53 > 0:34:55was re-rendered and the gate replaced.
0:35:00 > 0:35:06Upstairs, this house, that went to auction guided at 50,000 to 60,000,
0:35:06 > 0:35:11retains the layout of the original two bedrooms.
0:35:11 > 0:35:14So upstairs, smaller bedroom at the back
0:35:14 > 0:35:17and then a reasonable-sized double bedroom at the front.
0:35:17 > 0:35:20So it's all looking pretty good, isn't it?
0:35:20 > 0:35:22No, it isn't, look at this!
0:35:22 > 0:35:27It is disastrous! This massive crack running up the side of the bedroom.
0:35:27 > 0:35:32I bet if I pull some of this, it just continues up.
0:35:32 > 0:35:34Now, that is very serious.
0:35:34 > 0:35:38As you can see, the whole of this wall is separating out from this wall here.
0:35:38 > 0:35:41What is going on underneath this property, I do not know.
0:35:41 > 0:35:46But I'd certainly want to hear from a structural engineer before I bought the place.
0:35:47 > 0:35:50'It could prove to be a costly concern
0:35:50 > 0:35:54'if that crack is a sign of major structural problems.
0:35:54 > 0:35:56'But if you can get it sorted,
0:35:56 > 0:35:59'there doesn't seem to be much else wrong with this place.
0:35:59 > 0:36:03'Somebody has already stripped all the wallpaper off in every room.
0:36:03 > 0:36:07'Apart from this nasty crack, everywhere else looks pretty good.
0:36:07 > 0:36:10'We asked the auctioneer who sold it to take a look around
0:36:10 > 0:36:15'and give his verdict on this handy city property.'
0:36:15 > 0:36:16I'm pleasantly surprised.
0:36:16 > 0:36:20I think it is a property in reasonably good condition.
0:36:20 > 0:36:21It needs some home improvements,
0:36:21 > 0:36:24but overall it is in reasonable condition.
0:36:24 > 0:36:27'Once the house has been refurbished,
0:36:27 > 0:36:31'bearing in mind its prime location and the competition around here,
0:36:31 > 0:36:35'how much could the house fetch in the current sales market?'
0:36:35 > 0:36:37I think in a refurbished condition,
0:36:37 > 0:36:43it would be achieve a price of between £75,000 and £80,000.
0:36:43 > 0:36:45'What about rental income?'
0:36:45 > 0:36:51The potential renal income would be in the region of £395 per calendar month.
0:36:51 > 0:36:53'Not a bad return, then,
0:36:53 > 0:36:58'considering the guide price of 50,000 to 60,000.'
0:36:58 > 0:37:02Well, clearly a house, not without its problems.
0:37:02 > 0:37:04You have got the road, that terrible crack,
0:37:04 > 0:37:08but still the guide price was pretty reasonable.
0:37:08 > 0:37:12So let's see who fancied the opportunity when it went under the hammer.
0:37:12 > 0:37:15Right, lot number 22 in your catalogue,
0:37:15 > 0:37:18two-bedroom terraced house with gas central heating,
0:37:18 > 0:37:2150 to 60 is the last quoted guide. So 50 anywhere?
0:37:21 > 0:37:2650 I have in the door. At £50,000.
0:37:26 > 0:37:27At £50,000.
0:37:28 > 0:37:30At 51, I have, 52 may I say?
0:37:33 > 0:37:35A shake of the head at 52,
0:37:35 > 0:37:37at 51 to my right-hand side.
0:37:37 > 0:37:39At 51. Are we all done?
0:37:39 > 0:37:42Take a half, sir. Half I've got.
0:37:42 > 0:37:4452, shake of the head.
0:37:44 > 0:37:48Back with you at 51,500, for the first time.
0:37:49 > 0:37:53At 51,500 for the second time. All done?
0:37:54 > 0:37:58At 51,500 for the third and final time, are you out?
0:37:59 > 0:38:01Sold to the room, the big fella.
0:38:01 > 0:38:05'That final successful bid of £51,500
0:38:05 > 0:38:09'was made by Martin who lives about six miles away.
0:38:09 > 0:38:13'He is a qualified HGV mechanic, but for the last seven years
0:38:13 > 0:38:16'has been running his own window-cleaning business.
0:38:16 > 0:38:20'I met him back at the property to hear about his plans.'
0:38:20 > 0:38:24- Martin, good to meet you. - Nice to meet you, Martin. - Congratulations.
0:38:24 > 0:38:26Tell me why you wanted to buy this place.
0:38:26 > 0:38:31Basically because the money that was in the bank is not making too much at the minute.
0:38:31 > 0:38:34You see a lot of people renting houses out
0:38:34 > 0:38:37for, like their pension later on in life
0:38:37 > 0:38:39so that's basically me idea, as an investment.
0:38:39 > 0:38:42Right. Have you done anything like this before?
0:38:42 > 0:38:46- No, this is the first time. - So why this particular house then?
0:38:46 > 0:38:49Just because it goes for the smaller market.
0:38:49 > 0:38:52It is not going to be too stupid rental.
0:38:52 > 0:38:54Just to go for basic market really.
0:38:54 > 0:38:56What do you do when you are not doing this?
0:38:56 > 0:39:01I'm actually a window cleaner, I have got me own window cleaning round.
0:39:01 > 0:39:04- I was an HGV mechanic before that. - What took you into window cleaning?
0:39:04 > 0:39:10Basically my dad was retiring so his round was up for grabs basically
0:39:10 > 0:39:13so I thought I would just try something different.
0:39:13 > 0:39:19# What's my life? I'm happy cleaning windows... #
0:39:19 > 0:39:22'Martin knows the area well.
0:39:22 > 0:39:26'Getting his first investment property so close to town
0:39:26 > 0:39:32'and to the bottom of the guide price was a great first step on the property ladder.'
0:39:32 > 0:39:35# I'm a working man in my prime
0:39:35 > 0:39:37# Cleaning windows... #
0:39:39 > 0:39:42Tell me what you're going to do to the house.
0:39:42 > 0:39:46I'm going to get new doors, possibly new windows,
0:39:46 > 0:39:49I'm going to look to see if there's any damp in the house.
0:39:49 > 0:39:52The roof's leaking, so I'm going to have a look at that,
0:39:52 > 0:39:54insulation for efficiency,
0:39:54 > 0:39:59and also obviously plastering, where it needs done and redecorating.
0:39:59 > 0:40:02The back yard needs a new gate on, so I'm going to sort that out.
0:40:02 > 0:40:04Cavity in the walls outside as well
0:40:04 > 0:40:06and that's about it, I think.
0:40:06 > 0:40:09And what about the crack upstairs?
0:40:09 > 0:40:13Ah, yes. There's a crack upstairs. I'll get that investigated as well
0:40:13 > 0:40:16just to make sure the house isn't moving or anything like that.
0:40:16 > 0:40:19What kind of money have you got set aside for doing the work?
0:40:19 > 0:40:22Well, I was looking about £5,000,
0:40:22 > 0:40:28maybe up to £8,000 if that crack is going to be anything serious.
0:40:28 > 0:40:31Well, that crack could add major costs to this renovation,
0:40:31 > 0:40:36but surely Martin must have spotted it before he bought it.
0:40:37 > 0:40:40So did you come and see the house before you bought it?
0:40:40 > 0:40:42Unfortunately, I didn't.
0:40:42 > 0:40:45I went to the auction to look at another two different properties
0:40:45 > 0:40:49which I was bidding on, so basically I bought this blind,
0:40:49 > 0:40:51which I wouldn't advise anybody to do.
0:40:51 > 0:40:54An unusual thing to do on your first purchase.
0:40:54 > 0:40:58Sometimes people with a lot more experience buy blind - I'd still never recommend it -
0:40:58 > 0:41:01but for your first one to buy blind...
0:41:01 > 0:41:03How was it when you walked through the door?
0:41:03 > 0:41:06I was anxious at first cos I hadn't seen the property,
0:41:06 > 0:41:10but as soon as I viewed it, I was fairly happy.
0:41:10 > 0:41:12And had you read the legal pack?
0:41:12 > 0:41:15I had a quick look, but it was only five minutes
0:41:15 > 0:41:17so obviously I couldn't look at it properly.
0:41:17 > 0:41:20So tell me what you're going to do next time you buy a house?
0:41:20 > 0:41:24I'm certainly going to view it properly first!
0:41:24 > 0:41:28Take a bit more... Obviously look at the legal pack a bit better.
0:41:30 > 0:41:32It's all a learning experience for us.
0:41:32 > 0:41:35Well, the budget's set.
0:41:35 > 0:41:38Martin thinks he can still pull the whole thing off in three months
0:41:38 > 0:41:42with the help of friends and by picking up valuable tips along the way.
0:41:44 > 0:41:48The idea then is to keep it, rent it out or to sell it?
0:41:48 > 0:41:50Keep it and to rent it out.
0:41:50 > 0:41:54- Congratulations. Good luck. I look forward to seeing how you get on. - Thank you very much.
0:41:54 > 0:42:00Well, it's great that window cleaner Martin has got himself on the property ladder,
0:42:00 > 0:42:04however I do think he'll be squeegee-ing the budget a bit
0:42:04 > 0:42:08to get all this done for £6,000 - especially that crack.
0:42:08 > 0:42:11Will he end up spending a bucket-load of cash?
0:42:11 > 0:42:13You can find out later in the show.
0:42:17 > 0:42:22Time has passed, money's been spent. Are the results worth it?
0:42:22 > 0:42:26Have our buyers got on with the work or let the grass grow under their tootsies?
0:42:26 > 0:42:28Let's find out!
0:42:28 > 0:42:30We're back in Poplar, East London,
0:42:30 > 0:42:34to find out if painter and decorator Steve's mid-terrace
0:42:34 > 0:42:37is now a pair of flats or a family home.
0:42:37 > 0:42:38And does the sun still shine indoors?
0:42:38 > 0:42:41# They call me Mellow Yellow #.
0:42:41 > 0:42:45Inside, as well as many shades of yellow,
0:42:45 > 0:42:48the house was packed with unique features,
0:42:48 > 0:42:50curved walls and cornices galore,
0:42:50 > 0:42:55but no one had taken care of it for years and leaky bay windows had left it damp and mouldy.
0:42:57 > 0:43:01The property had one kitchen, two bathrooms
0:43:01 > 0:43:04and separate meters for power so it was very nearly two flats,
0:43:04 > 0:43:07or rather illegally nearly two flats.
0:43:07 > 0:43:10No-one had applied for permission to divide it
0:43:10 > 0:43:12and that was where the real money lay.
0:43:13 > 0:43:16As a house, it would sell for around 300,000.
0:43:16 > 0:43:20And as a local boy, Steve knew exactly what the flats could be worth.
0:43:20 > 0:43:24It took a gamble that I'd get the planning
0:43:24 > 0:43:28so I could make it into two legal one-bedroom luxury flats.
0:43:30 > 0:43:32Steve bought it for 230,000
0:43:32 > 0:43:37and planned to spend £35,000 on it if he was refurbishing a house
0:43:37 > 0:43:40and around 45,000 if he got permission for the flats.
0:43:40 > 0:43:45We've come back after three months to see if the planners played along.
0:43:45 > 0:43:47How does it look now?
0:43:53 > 0:43:55# I'm walking on sunshine
0:43:55 > 0:43:57# Whoa
0:43:57 > 0:44:00# I'm walking on sunshine
0:44:00 > 0:44:02# Whoa
0:44:02 > 0:44:04# And don't it feel good... #
0:44:04 > 0:44:07The run-down leaky house with its lurid colour scheme
0:44:07 > 0:44:10is now a distant memory.
0:44:10 > 0:44:14Downstairs, walls have disappeared, bathrooms have gone
0:44:14 > 0:44:17and these spacious rooms are now looking their very best.
0:44:19 > 0:44:23But come on, Steve, am I looking at two flats or one house?
0:44:24 > 0:44:27I got in touch with the council
0:44:27 > 0:44:30and they advised us that they would go against it
0:44:30 > 0:44:34and even if we did appeal, they would object to it again
0:44:34 > 0:44:38because of the developments of flats in the area.
0:44:38 > 0:44:42If it's a family home, they want to keep the family homes now
0:44:42 > 0:44:44cos there's not enough of 'em about.
0:44:44 > 0:44:46We went down that route.
0:44:46 > 0:44:50OK, so Steve's ideal development didn't happen,
0:44:50 > 0:44:53but he has worked wonders and realised my vision
0:44:53 > 0:44:59by turning an unwieldy mess of rooms into this lovely family home.
0:45:00 > 0:45:04As you remember, this was just a lounge.
0:45:04 > 0:45:09Um... And over there was a shower room, swimming pool area
0:45:09 > 0:45:11because of the damp, I suppose,
0:45:11 > 0:45:14the fireplaces, one here and one in the bathroom,
0:45:14 > 0:45:19we took them right the way up, to the ceiling to the roof.
0:45:19 > 0:45:23And basically, this was a bay window,
0:45:23 > 0:45:29so I've took it out, put a door in to make it a little bit spacious and a nice design feature,
0:45:29 > 0:45:31it's a kitchen to die for,
0:45:31 > 0:45:35there's enough there for the street, basically.
0:45:35 > 0:45:40There's enough room here for a dining table.
0:45:40 > 0:45:44Nice lighting, under-lighting under the pelmets.
0:45:44 > 0:45:47To me, I think it works very well.
0:45:47 > 0:45:50And I'm pretty proud of it, to be honest with you. There we go.
0:45:53 > 0:45:57Steve is right to be proud of his handiwork,
0:45:57 > 0:46:02and I think the kitchen is exactly what buyers are seeking.
0:46:02 > 0:46:05Outside, he's opened up access to the garden
0:46:05 > 0:46:10and made the outside space as fresh, contemporary and welcoming as the indoors,
0:46:10 > 0:46:15although sacrifices had to be made to get the layout he wanted downstairs.
0:46:19 > 0:46:22As you can see, I've opened it up, it was two reception rooms.
0:46:22 > 0:46:24As you come through the door,
0:46:24 > 0:46:27a door there, a door with an arch, a bit of wall.
0:46:27 > 0:46:30Sorry, Lucy, but it had to go, I know you liked it,
0:46:30 > 0:46:34but we're in the 21st century now and this is the way we're going.
0:46:34 > 0:46:36I took the banisters out.
0:46:36 > 0:46:40Designed this little bit of a feature wall to go up the staircase.
0:46:40 > 0:46:43Come over to here, wall's hidden, empty space,
0:46:43 > 0:46:49I've opened this up, it's a closet, a little toilet and hand basin and everything in it.
0:46:49 > 0:46:51Over here, we had the window.
0:46:51 > 0:46:55Took this out, opened it up, made it more spacious with the French doors,
0:46:55 > 0:47:00into the garden, and the fireplace, sort of just leave it as it was a little bit drab,
0:47:00 > 0:47:04so I opened it up and stuck this shelving unit in.
0:47:04 > 0:47:07It's pretty effective to me.
0:47:07 > 0:47:08On the other fireplace,
0:47:08 > 0:47:13we've got the electric fire, wall-hung fire there.
0:47:13 > 0:47:14It's open.
0:47:14 > 0:47:18There's enough space in here to even break it up into two rooms
0:47:18 > 0:47:20with your furniture, really,
0:47:20 > 0:47:23and like the kitchen, I think it goes well.
0:47:23 > 0:47:25I'm well pleased with it.
0:47:25 > 0:47:29Before Steve got his hands on it, the only kitchen was upstairs.
0:47:29 > 0:47:35By moving the kitchen downstairs, Steve had room to make a large family bathroom up here
0:47:35 > 0:47:38and squeeze in an extra bedroom.
0:47:38 > 0:47:43That gives the house three good-sized bedrooms, making it ideal for a family.
0:47:48 > 0:47:50But with so much building work,
0:47:50 > 0:47:54just how close did Steve come to his £35,000 budget?
0:47:54 > 0:47:5860. But there we go. That is it.
0:47:58 > 0:48:02I'm not going to cry about it, because at the end of the day, it had to be done.
0:48:02 > 0:48:05If I didn't spend it, I could never hand it over to anyone,
0:48:05 > 0:48:08and there's no way I'm going to do that.
0:48:08 > 0:48:11Some of the fittings are a bit more than your high street,
0:48:11 > 0:48:15it's what people want, especially in this market.
0:48:15 > 0:48:18I want people to go, wow, and when they go, wow,
0:48:18 > 0:48:21you know you'll get your money in the end and it'll always come.
0:48:21 > 0:48:25Steve bought the property for 230,000
0:48:25 > 0:48:29and completed the renovation work for 60,000,
0:48:29 > 0:48:33bringing his total outlay to £290,000.
0:48:33 > 0:48:36Time to find out what two estate agents think of his handiwork.
0:48:36 > 0:48:39The property has undergone a lot of improvements.
0:48:39 > 0:48:43Everything from the ground up has been stripped down and put together again.
0:48:43 > 0:48:47There are some beautiful open spaces downstairs,
0:48:47 > 0:48:48a brand-new beautiful kitchen,
0:48:48 > 0:48:50the wooden flooring
0:48:50 > 0:48:53and the attention to detail is absolutely paramount.
0:48:53 > 0:48:57People in this area are expecting this sort of finish
0:48:57 > 0:49:00as they are across most of London, really.
0:49:00 > 0:49:03Everyone wants a good finish, so it fits in really well.
0:49:03 > 0:49:08High praise indeed from the local experts.
0:49:08 > 0:49:11How much do they think the property's worth now?
0:49:13 > 0:49:17We would look to begin marketing the property at £350,000.
0:49:18 > 0:49:22I believe this property should be marketed at 325,000,
0:49:22 > 0:49:27although I would suggest putting it on slightly higher to test the market.
0:49:30 > 0:49:37Those valuations would mean a profit of between 35,000 and 60,000 before costs and expenses.
0:49:39 > 0:49:43Not bad going for only four months' work.
0:49:43 > 0:49:44350 is pushing it a bit.
0:49:44 > 0:49:49If I sell it for 330, 335, I'll be happy with it.
0:49:49 > 0:49:5110% on top of the purchase price.
0:49:51 > 0:49:55The money I spent on it, I will pay myself wages as well,
0:49:55 > 0:49:58so profit's profit at the end of the day.
0:50:01 > 0:50:09Is painter and decorator Steve tempted to trade in his paintbrushes for a new career in property?
0:50:09 > 0:50:13I love it. Basically. Even though I've got my other work,
0:50:13 > 0:50:16this is where I want to go, really.
0:50:16 > 0:50:19But obviously I can't give up the bread-and-butter work.
0:50:19 > 0:50:25As long as you ain't greedy and you enjoy what you're doing, carry on, and I'm going to carry on.
0:50:25 > 0:50:28I'd never lose money at it.
0:50:28 > 0:50:30So £1 is a profit.
0:50:32 > 0:50:34When we were last in Carlisle,
0:50:34 > 0:50:40Martin, a self-employed window cleaner, had paid £51,500
0:50:40 > 0:50:44for this mid-terraced house that he planned to rent out.
0:50:45 > 0:50:48# What's my life
0:50:48 > 0:50:51# I'm happy cleaning windows... #
0:50:51 > 0:50:55But he broke two of the golden rules of buying at auction.
0:50:55 > 0:50:58He hadn't looked around it or read the legal pack,
0:50:58 > 0:51:03and the property had a potentially major structural problem.
0:51:03 > 0:51:05# I'm a working man in my prime
0:51:07 > 0:51:08# Cleaning windows... #
0:51:10 > 0:51:13What experience do you have of property renovation?
0:51:13 > 0:51:16Not many, really, to be honest.
0:51:16 > 0:51:18I'm basically going to use mainly my friends
0:51:18 > 0:51:22who have got a lot of trades behind them and watch what they're doing
0:51:22 > 0:51:25and try to pick a few things up myself.
0:51:25 > 0:51:27And what about the crack upstairs?
0:51:27 > 0:51:31I'm going to get that investigated as well just to make sure
0:51:31 > 0:51:34the house isn't moving or anything like that.
0:51:35 > 0:51:40It's now six weeks later and we meet Martin again back at the property.
0:51:45 > 0:51:49The house now has new windows and front door,
0:51:49 > 0:51:54plus the tiny garden is ready for planting.
0:51:54 > 0:51:55It's a classic terrace,
0:51:55 > 0:51:59so you step straight off the street into the living room,
0:51:59 > 0:52:04which is now neutrally decorated and boosts a new fire and carpet.
0:52:06 > 0:52:09Behind the central staircase is the kitchen where Martin's been able
0:52:09 > 0:52:12to keep the original fittings.
0:52:15 > 0:52:17I had a new ceiling fitted,
0:52:17 > 0:52:19new plastered walls,
0:52:19 > 0:52:23new windows, new lino on the floor,
0:52:23 > 0:52:27painted, spent a bit of time cleaning the kitchen units up,
0:52:27 > 0:52:30saved a bit of money by doing that and not having to replace the kitchen
0:52:30 > 0:52:34and I'm just very pleased how it's turned out.
0:52:35 > 0:52:38On this, his first property development,
0:52:38 > 0:52:42Martin enlisted a lot of help from his friends and family.
0:52:42 > 0:52:46Behind the kitchen in the extension is the back door
0:52:46 > 0:52:49and the bathroom which, like the kitchen,
0:52:49 > 0:52:51was in pretty good condition.
0:52:51 > 0:52:54So it only needed a good clean and some new flooring,
0:52:54 > 0:52:57but what about the gaping hole in the in the front bedroom?
0:52:57 > 0:53:00How big a problem did that prove to be?
0:53:01 > 0:53:06There was a crack in the bigger bedroom upstairs.
0:53:06 > 0:53:08I got a builder to come and have a look at it.
0:53:08 > 0:53:11He said there was nothing to be concerned about
0:53:11 > 0:53:16so I just filled it in with a bit of cement and it was OK.
0:53:16 > 0:53:19Excellent news. It looks like Martin's got away with his gamble
0:53:19 > 0:53:21of buying a place without seeing it first.
0:53:21 > 0:53:25The second rear bedroom has lost the cupboard
0:53:25 > 0:53:28that boxed in the boiler, but it has gained a new window
0:53:28 > 0:53:32and been replastered, decorated and carpeted.
0:53:32 > 0:53:34So what's gone on at the back?
0:53:37 > 0:53:40Basically, we've had the roof repaired.
0:53:40 > 0:53:43We've also had new windows fitted, the gutters cleaned out,
0:53:43 > 0:53:47also had the walls painted,
0:53:47 > 0:53:51levelled off because there was glass in the top of the walls,
0:53:51 > 0:53:53cleaned the post,
0:53:53 > 0:53:55and a new gate fitted.
0:53:55 > 0:53:59I'm very pleased how the rear yard is looking now.
0:53:59 > 0:54:03OK, the walls are a bit rough, but what a difference
0:54:03 > 0:54:07a splash of paint and a basic gate from a superstore have made.
0:54:07 > 0:54:10What about Martin's five-to-eight-grand budget
0:54:10 > 0:54:14that was to cover the potential problem of that crack?
0:54:14 > 0:54:19We spent £6,500, obviously with help of friends and family,
0:54:19 > 0:54:22just to keep costs down a little bit.
0:54:23 > 0:54:26Window cleaner Martin helped with the new window installation
0:54:26 > 0:54:30and the decorating and he's been watching his mates
0:54:30 > 0:54:35and picking up skills to take forward to his future projects.
0:54:36 > 0:54:41Time to hear what two local property experts make
0:54:41 > 0:54:43of Martin's first buy-to-let.
0:54:44 > 0:54:48Having looked round the property, they've done a good refurb of it.
0:54:48 > 0:54:49It's a good size.
0:54:49 > 0:54:51There's a nice kitchen and the bathroom
0:54:51 > 0:54:53and a good-size yard at the back as well. It's good.
0:54:53 > 0:54:56I particularly like the light, airy feel to it.
0:54:56 > 0:55:01He's kept it minimalistic and it's a good job.
0:55:01 > 0:55:04What valuation would the experts now put on the house?
0:55:04 > 0:55:10Martin paid £51,500 at auction and has spent 6,500,
0:55:10 > 0:55:13so is it worth more than 58 grand?
0:55:15 > 0:55:18I think this property could resell for £75,000.
0:55:18 > 0:55:22The property will resale at £75,000.
0:55:22 > 0:55:26That would generate a gross profit of 17,000
0:55:26 > 0:55:29before the usual selling expenses.
0:55:30 > 0:55:34Very happy with that price, roughly what I was thinking.
0:55:34 > 0:55:36Yeah, I'm more than happy about that.
0:55:36 > 0:55:40Would Martin now consider selling?
0:55:40 > 0:55:43No, I'm doing it for the long-term, for rental purposes.
0:55:43 > 0:55:46OK, so what about rental income?
0:55:46 > 0:55:50The property would rent at £400 per calendar month.
0:55:50 > 0:55:54I think this property could rent for £400 per calendar month.
0:55:54 > 0:55:59Well, I've got £400 a month. That sounds bang on as well.
0:55:59 > 0:56:02I've found a nice young little couple
0:56:02 > 0:56:04that are going to rent the property.
0:56:04 > 0:56:09My mum's a taxi driver and she had this young couple in her taxi
0:56:09 > 0:56:13and they were looking for a new place to move to, and my mother gave them
0:56:13 > 0:56:18my number and they've just got in touch and it went from there.
0:56:19 > 0:56:24Well done, Mum. Never miss an opportunity to find a tenant.
0:56:24 > 0:56:26This window cleaner-cum-rookie property developer
0:56:26 > 0:56:28looks like he's cleaned up here.
0:56:28 > 0:56:32Now he's got a foot on the property ladder, what next?
0:56:32 > 0:56:35I would like to get a portfolio,
0:56:35 > 0:56:38if everything works out for us. I'm certainly going to try.
0:56:38 > 0:56:40There's another one on next month
0:56:40 > 0:56:43so I'm planning on going to that one again.
0:56:43 > 0:56:46Hopefully, fingers crossed, I'll get another property
0:56:46 > 0:56:48and it'll go as good as this one.
0:56:50 > 0:56:51Well, that's it for now.
0:56:51 > 0:56:55Join us next time for more auction action on Homes Under the Hammer.
0:56:55 > 0:56:57- Look forward to seeing you then. - Goodbye.- Goodbye.
0:57:14 > 0:57:17Subtitles by Red Bee Media Ltd
0:57:17 > 0:57:20Email subtitling@bbc.co.uk