0:00:00 > 0:00:03Hello. Now, if you've been tempted to go to the auction
0:00:03 > 0:00:06but haven't quite taken the plunge yet, maybe now is the time.
0:00:06 > 0:00:09There is always such variety on offer!
0:00:09 > 0:00:13Absolutely. Thousands of lots are offered for sale every year,
0:00:13 > 0:00:17so why not go down to your local auction house and check out the action?
0:00:42 > 0:00:44People often ask us, Martin, don't they,
0:00:44 > 0:00:46how to behave in an auction room.
0:00:46 > 0:00:49Well, there are no hard-and-fast rules but here are a few tips.
0:00:49 > 0:00:52Always sit where you can be seen by the auctioneer.
0:00:52 > 0:00:54And set yourself a price limit, and stick to it.
0:00:54 > 0:00:57That's right. If you're going to bid, be clear,
0:00:57 > 0:00:59be visible and do not exceed your limit.
0:00:59 > 0:01:02Well, here's what people bid for on today's show.
0:01:03 > 0:01:04It seems the time has come
0:01:04 > 0:01:07to revamp this house in Bishop Auckland.
0:01:08 > 0:01:10It's a little bit dated, but that's it.
0:01:10 > 0:01:13You've got yourself a great property here.
0:01:13 > 0:01:16In Hythe, Kent, I discover a small cottage
0:01:16 > 0:01:19where there's more room than I expected.
0:01:19 > 0:01:22Fantastic! Look at that space!
0:01:22 > 0:01:24While in Wiltshire, there's a lot
0:01:24 > 0:01:27that brings out the naturalist in me.
0:01:28 > 0:01:31Here in the undergrowth of the garden,
0:01:31 > 0:01:33you never know what you might find.
0:01:34 > 0:01:36All these properties went to auction,
0:01:36 > 0:01:39and we'll find out who bought them and what they paid for them
0:01:39 > 0:01:42- when they went under the hammer. - And are you all done?
0:01:47 > 0:01:50I've come to Bishop Auckland in the North East,
0:01:50 > 0:01:52a coal-mining town with its own castle.
0:01:52 > 0:01:55The castle has been home to the Bishop of Durham,
0:01:55 > 0:01:59rather than a king, for 800 years - hence the town's name.
0:02:01 > 0:02:04# Like a king without a castle
0:02:04 > 0:02:09# Like a man without a home... #
0:02:09 > 0:02:14Sadly, coal-mining has all gone but the town has a charming centre and it's full of character.
0:02:17 > 0:02:20Well, just ten minutes from the town centre,
0:02:20 > 0:02:23and you leave the medieval architecture behind.
0:02:23 > 0:02:26And in its place, 1950s suburbia.
0:02:26 > 0:02:31But it's really well-kept - big open streets. So, we like that.
0:02:31 > 0:02:32And you'll be even more impressed
0:02:32 > 0:02:35when you see the property that was up for auction.
0:02:35 > 0:02:38It had a guide price of 45,000 quid. This is it.
0:02:38 > 0:02:41End of terrace. Let's take a look inside.
0:02:42 > 0:02:45It may be over 50 years old, but the brickwork looks excellent.
0:02:45 > 0:02:50Local authority houses like this were nearly always well-built,
0:02:50 > 0:02:53and it's also got a decent-sized front garden.
0:02:53 > 0:02:56So, a promising start. I wonder what it's like inside.
0:02:58 > 0:03:00So, fairly standard layout there.
0:03:00 > 0:03:03In through the front door, little entrance hall.
0:03:03 > 0:03:07Then through into your living room/dining room area.
0:03:07 > 0:03:12I mean, straightaway, you're seeing it's a little bit dated. But nothing too untoward.
0:03:12 > 0:03:16No smell of damp, no major structural issues as far as I can see.
0:03:16 > 0:03:20I mean, you might want to create some extra space by getting rid of this fire surround.
0:03:20 > 0:03:22That would modernise the look.
0:03:22 > 0:03:25But, in terms of layout, I really like it. It's very simple.
0:03:25 > 0:03:28In through there, living room /dining room area here.
0:03:28 > 0:03:33You've your kitchen off there. Now, again, you could live with it, I suppose.
0:03:33 > 0:03:37But spend a few thousand on that and you'd really transform it. Then through here,
0:03:37 > 0:03:40some nice patio doors out into the garden. Can't go wrong!
0:03:40 > 0:03:44# I can't, I can't go wrong... #
0:03:44 > 0:03:46Famous last words, of course!
0:03:46 > 0:03:49But this property seems to have been very well maintained.
0:03:49 > 0:03:53It could certainly do with some cosmetic enhancement.
0:03:53 > 0:03:55But overall, I'm impressed. And the garden?
0:03:55 > 0:04:00Well, that's a very good size, complete with a half-made pond.
0:04:00 > 0:04:04But it's from here that you can clearly see the signs of the real work that needs to be done.
0:04:04 > 0:04:07New guttering and fascia boards, for sure.
0:04:07 > 0:04:11And only some of the windows have been double-glazed.
0:04:13 > 0:04:17So, upstairs and a nice surprise. Good-sized landing.
0:04:17 > 0:04:20The fact that you're on an end terrace is good news, as well,
0:04:20 > 0:04:23because you get that extra window. So lots of light in here.
0:04:23 > 0:04:27A bit of storage. The old hot-water cylinder, there.
0:04:27 > 0:04:30Put a combination boiler in and you could create even more space.
0:04:30 > 0:04:35Something else - at the current time, you've got a bathroom and the loo separate.
0:04:35 > 0:04:38Do you knock that wall out? Well, it makes the bathroom bigger
0:04:38 > 0:04:43but I quite like the functionality, especially in a family home, of having a separate loo.
0:04:43 > 0:04:46And then you've got your two bedrooms. One at the back there,
0:04:46 > 0:04:48and then a decent-sized one at the front.
0:04:48 > 0:04:52So, I mean, all in all, it's a little bit dated, but that's it.
0:04:52 > 0:04:55You've got yourself a great property here.
0:04:59 > 0:05:03At the guide price of 45,000, this looks to be quite a good buy.
0:05:03 > 0:05:07Realistically, you'd need to budget about £10,000 to do it up.
0:05:07 > 0:05:12But once you've replaced the windows, sorted out the exterior and modernised throughout,
0:05:12 > 0:05:13that's about all it would take,
0:05:13 > 0:05:16provided you don't find any hidden nasties.
0:05:16 > 0:05:19But perhaps there's a way of making more of it.
0:05:23 > 0:05:26Well, one of the benefits of the property's location
0:05:26 > 0:05:27on the end of the terrace here
0:05:27 > 0:05:31means that you HAVE got the option to do a fairly simple extension.
0:05:31 > 0:05:35On the side here, two storeys. Maybe extend the kitchen, or whatever, over this way,
0:05:35 > 0:05:39and then a bedroom above. Certainly increase your living space.
0:05:39 > 0:05:41But would it be worth it financially? Not so sure.
0:05:41 > 0:05:44It would cost around £20,000 to do that,
0:05:44 > 0:05:46and only add about that to the value.
0:05:46 > 0:05:51So, yes, if you're going to live here, want the space, do it. If it's an investment, don't bother.
0:05:52 > 0:05:56It's always a good idea to have a clear plan of what you want from a property.
0:05:56 > 0:06:00Around here, there are plenty of other three-bedroom houses to choose from.
0:06:00 > 0:06:03So, unless you're particularly attached to this plot,
0:06:03 > 0:06:07I think, if you wanted more space, you'd just go and look elsewhere.
0:06:08 > 0:06:11Time to find out what a local estate agent thinks of the house
0:06:11 > 0:06:13that went to auction guided at £45,000,
0:06:13 > 0:06:17and hear a bit more about the estate that it's all built on.
0:06:18 > 0:06:21The estate was constructed in the 1950s and '60s,
0:06:21 > 0:06:27originally to house villagers from the old mining villages.
0:06:27 > 0:06:30As the mines closed and there wasn't work for them,
0:06:30 > 0:06:33they were brought into Bishop Auckland town to live.
0:06:33 > 0:06:36I understand some families didn't really want to come,
0:06:36 > 0:06:39which can't have been a good start for the estate
0:06:39 > 0:06:42but now it's very popular and very good value for money.
0:06:42 > 0:06:45They're well built houses, and good-sized
0:06:45 > 0:06:48and they ARE quite sought after.
0:06:48 > 0:06:50How much could it be worth once it's been refurbished
0:06:50 > 0:06:53but left as a two-bedroom house?
0:06:53 > 0:06:59The property, in the current market, in its current condition, is probably worth around £50,000.
0:06:59 > 0:07:02Fully refurbished to a good standard,
0:07:02 > 0:07:05that would probably increase to about £70,000.
0:07:05 > 0:07:09For a buy-to-let investor, how much rental income could it generate
0:07:09 > 0:07:13as it stands at the moment, as a two-bedroom property?
0:07:13 > 0:07:17There's quite a good demand for rental properties in this area at the moment
0:07:17 > 0:07:21and we'd probably look at achieving £420 per calendar month.
0:07:21 > 0:07:24What you've got here is a really good-sized house
0:07:24 > 0:07:27which benefits from this brilliant family-sized garden.
0:07:27 > 0:07:31And I think a keen DIY-er could easily sort out the inside.
0:07:31 > 0:07:34So, if it was bought for anything like the guide price,
0:07:34 > 0:07:37a great one to go for. Let's see who bought it when it went under the hammer.
0:07:37 > 0:07:39We move to lot number 38.
0:07:39 > 0:07:41It's a two-bed family home.
0:07:41 > 0:07:45I'll start at 40 if it helps. 40,000 bid on the right.
0:07:45 > 0:07:46I've got the one bid of 40,000.
0:07:46 > 0:07:48Anything further?
0:07:48 > 0:07:51The one bid, of 40,000. 41,000 at the back.
0:07:51 > 0:07:54It's against you. It's at 41.
0:07:54 > 0:07:5742 bid on the phone. And I'm going to sell.
0:07:57 > 0:07:59You're both out. I'm at 42 on the phone.
0:07:59 > 0:08:01I'll take 500 from either.
0:08:01 > 0:08:03I'm going to sell it at 42.
0:08:03 > 0:08:07I'm selling it once at 42. You're both out.
0:08:07 > 0:08:10I'm selling for the second time. At 42,000, seems cheap.
0:08:10 > 0:08:11Is there anything else?
0:08:11 > 0:08:15Selling for the third and final time at £42,000.
0:08:15 > 0:08:18Sold on the telephone for 42.
0:08:19 > 0:08:21Well, that was short and sweet.
0:08:21 > 0:08:25The successful bid of £42,000 was made on the phone
0:08:25 > 0:08:29by husband-and-wife team Alison and Sean.
0:08:29 > 0:08:32They live in Manchester, although Alison, who's a PR manager,
0:08:32 > 0:08:35is originally from the North East.
0:08:35 > 0:08:38Sean's a mechanic in the industrial sector,
0:08:38 > 0:08:40and this is their first purchase at auction.
0:08:40 > 0:08:44I met up with them to hear about their plans.
0:08:44 > 0:08:48- Alison, Sean - lovely to meet you both. Congratulations!- Thank you!
0:08:48 > 0:08:50Tell me why you wanted to buy this place.
0:08:50 > 0:08:53Well, we saw it a while ago.
0:08:53 > 0:08:56And it's in my home town, which is nice. So we know the area.
0:08:56 > 0:08:59And we came to look at it about six months ago,
0:08:59 > 0:09:02- but it was really expensive and out of our league.- What was it?
0:09:02 > 0:09:06It was about 67,950, I think. Which was out of our budget.
0:09:06 > 0:09:11We sat on it for a while and looked at other things and then spotted it up for auction at a lot lower,
0:09:11 > 0:09:14- and decided we'd take a punt on it. And it paid off, so...- Wow!
0:09:14 > 0:09:19- Very pleased.- And at the auction and you got it for less than the guide price!- Yeah!- Oh, yeah.
0:09:19 > 0:09:22The plan was just to be cheeky and we weren't actually going to get it.
0:09:22 > 0:09:26- When it went through, we were like, "Did we actually buy a house?" weren't we?- I know, gawping.
0:09:26 > 0:09:32- Why did you want to buy it? What's the plan here?- We've got a couple of other houses to rent out.
0:09:32 > 0:09:36- So that's what we're going to do with this.- We don't want to wait until we're 70 to retire!
0:09:36 > 0:09:39- That's the big one. - We're a bit nervous about a pension pot, or lack of.
0:09:39 > 0:09:42So we thought we'd think ahead and be sensible.
0:09:42 > 0:09:45So it's a rental investment. Are you going to do it up and keep it?
0:09:45 > 0:09:47Exactly, yeah. For as long as we can, yeah.
0:09:47 > 0:09:51Brilliant. It sounds like you're from slightly further afield than Manchester.
0:09:51 > 0:09:55- Yeah, from Canada, yeah. - So what brought you to England?
0:09:55 > 0:09:58Well, yeah. That's quite the story, isn't it?
0:09:58 > 0:10:01Well, my friend Jenny was seeing a Canadian at the time.
0:10:01 > 0:10:05And then Sean came over to Salford, where we lived then,
0:10:05 > 0:10:08to hang out with his friend Ben, who was seeing my friend Jenny.
0:10:08 > 0:10:13And Jenny rang me one day, and said, "I've got these two Canadians. I'm going out with one,
0:10:13 > 0:10:17"but I don't know how to amuse the other one." We all went to the Comedy Store and I wasn't keen.
0:10:17 > 0:10:21I was like - "Oh, God, who are you setting me up with?" But then I met Sean and we clicked.
0:10:21 > 0:10:27- But then he had to go back to Canada 24 hours later.- No! - Yeah, so that was quite traumatic.
0:10:27 > 0:10:30So you met your guy, fall in love. Not love but, you know...
0:10:30 > 0:10:32- Yeah.- Getting there! - Getting there.
0:10:32 > 0:10:34- In 24 hours. And then he has to leave.- Yeah.
0:10:34 > 0:10:37But I was doing university radio at the time,
0:10:37 > 0:10:40and Sean rang in and requested a song on my show.
0:10:40 > 0:10:43And I thought, "Oh, how romantic. Englishmen don't do that!"
0:10:43 > 0:10:46- So from then on it was a winner, wasn't it?- Yeah.
0:10:46 > 0:10:49And Sean requested this very song.
0:10:49 > 0:10:51# And I said
0:10:51 > 0:10:52# What about
0:10:52 > 0:10:54# Breakfast at Tiffany's?
0:10:54 > 0:10:57# She said I think I
0:10:57 > 0:11:00# Remember the film... #
0:11:00 > 0:11:02I'm not sure why, but it certainly did the trick,
0:11:02 > 0:11:06as Alison had soon hot-footed it over to Canada to be with him.
0:11:06 > 0:11:11A year later, the couple moved back to the UK, and now they're married.
0:11:11 > 0:11:13Anyway, back to the reason we're here.
0:11:13 > 0:11:16What are the couple going to do with their new investment
0:11:16 > 0:11:19that they've spent £42,000 on?
0:11:20 > 0:11:24What we're going to do is the least amount possible, to rent it.
0:11:24 > 0:11:27I mean, obviously, there's quite a bit that needs to be done.
0:11:27 > 0:11:30The bathroom, for one, needs to be renovated.
0:11:30 > 0:11:34The kitchen we're going to leave. We're just going to clean it up and maybe re-tile.
0:11:34 > 0:11:36Just the minimal we can do.
0:11:36 > 0:11:40We need to get rid of some of the awful features, like this...wall.
0:11:40 > 0:11:43- The garden needs a lot of work. - There's lots of stuff out there.
0:11:43 > 0:11:47So, how much experience in DIY and building work have you got?
0:11:47 > 0:11:49We've done... Well, this is...
0:11:49 > 0:11:53- We've done a few houses, now, haven't we?- This is the third. - So, we know...
0:11:53 > 0:11:55we've been through it before, kind of the same.
0:11:55 > 0:11:56So it shouldn't be too hard.
0:11:56 > 0:11:59Sean's really handy with plastering and grouting,
0:11:59 > 0:12:01and all his gardening-type stuff.
0:12:01 > 0:12:04- And I just sweep and wallpaper. - She's admin! She's admin.
0:12:04 > 0:12:07So what kind of budget have you got for sorting it out?
0:12:07 > 0:12:10We're hoping it won't be any more than five. 5,000.
0:12:10 > 0:12:12It could go over that, but I don't think it will.
0:12:12 > 0:12:14So, what kind of timescale for getting it sorted?
0:12:14 > 0:12:16We're hoping three to four months.
0:12:16 > 0:12:19From experience, that's how long we think it'll take us.
0:12:19 > 0:12:25Hopefully we'll be faster cos we've done it before. In four months, fingers crossed, we'll have tenants.
0:12:25 > 0:12:30- Congratulations. I wish you all the best.- Thank you.- I look forward to seeing how you get on.- Thank you.
0:12:32 > 0:12:33Well, there you go.
0:12:33 > 0:12:39Romance isn't dead. And neither are good property investments, it seems.
0:12:39 > 0:12:43Sean and Alison have already made some big decisions in their life,
0:12:43 > 0:12:47and now, here they are securing their financial future.
0:12:47 > 0:12:50I'm really excited for them and can't wait to see
0:12:50 > 0:12:53how they get on sorting this place out. You can find out later in the show.
0:12:56 > 0:12:59Hythe in Kent is a pretty little coastal town
0:12:59 > 0:13:02with shops, restaurants and pubs aplenty.
0:13:02 > 0:13:04It's an attractive, quaint part of the country
0:13:04 > 0:13:06where people enjoy a more relaxed pace of life.
0:13:06 > 0:13:10I'm here to see a charming cottage
0:13:10 > 0:13:12that's in need of improvement and refurbishment.
0:13:12 > 0:13:17The guide for this two bedroom property was set at 80 to £90,000.
0:13:17 > 0:13:22And it's just off the high street! Up this fantastic little lane.
0:13:22 > 0:13:26So, it's a prime spot for the town centre.
0:13:26 > 0:13:28But it's not such a great position
0:13:28 > 0:13:31to get anything to or from the property.
0:13:31 > 0:13:36Also, parking might be an issue. But, on the up side, it looks pretty good from the outside,
0:13:36 > 0:13:38with its traditional tile cladding and sash window.
0:13:38 > 0:13:43Now, I'm not going to walk in here and expect it to be amazing.
0:13:43 > 0:13:45Because, after all, it's an auction property.
0:13:45 > 0:13:49And it does need a bit of work! But that window is beautiful.
0:13:49 > 0:13:53And I'm really feeling in a holiday mood, funnily enough.
0:13:53 > 0:13:56I'm thinking somebody might want to buy this as a holiday home.
0:13:56 > 0:13:59It's certainly got the space. It is incredibly dated.
0:13:59 > 0:14:03Straight away, I'd like to take this wall out.
0:14:03 > 0:14:06You could really, really open it up. A big RSJ there.
0:14:06 > 0:14:09These stairs really eat into this room.
0:14:09 > 0:14:12Potentially, you could think about a different type of staircase,
0:14:12 > 0:14:14maybe pushing it all back and along.
0:14:14 > 0:14:19You've got windows there, leading out to a little courtyard garden.
0:14:19 > 0:14:21Not so sure about the stone cladding!
0:14:21 > 0:14:23On first glance, I thought, "Oh, that's nice slate."
0:14:23 > 0:14:26But when you look closer up, it's incredibly naff.
0:14:26 > 0:14:30And I think you could quite easily just rip the whole thing off.
0:14:30 > 0:14:34You've got a tiny little kitchen there. But again, it serves a purpose.
0:14:34 > 0:14:38And the doors there lead straight outside to the courtyard. I'm going to explore.
0:14:40 > 0:14:44Once that unnecessary partition is out of the way,
0:14:44 > 0:14:46this room will benefit enormously.
0:14:49 > 0:14:52And it'll also look better without the false beams and the, er,
0:14:52 > 0:14:54interesting cladding.
0:14:55 > 0:14:57And yes, the kitchen may be a tad small
0:14:57 > 0:15:01but clever storage would make this a very usable space.
0:15:02 > 0:15:04Outside may be a bit on the snug side, too,
0:15:04 > 0:15:07but how lovely to have some outside space!
0:15:07 > 0:15:10What about the rest of the cottage?
0:15:10 > 0:15:15Upstairs, we've got two bedrooms and a bathroom. So a great space here. Look at this!
0:15:15 > 0:15:18For a holiday home, this is absolutely ideal.
0:15:18 > 0:15:20You've got a nice big window.
0:15:20 > 0:15:24Although it's not as attractive as the beautiful Georgian sash one over there!
0:15:24 > 0:15:27But I don't think it'd be worth spending money and changing this.
0:15:27 > 0:15:30And round here... now, what is this?
0:15:31 > 0:15:34Fantastic! Look at that space!
0:15:34 > 0:15:40Now, my guess is they may have been keeping washing machines and stuff in here.
0:15:40 > 0:15:44You've got a brand new boiler, which is a big thumbs up. All the plumbing is in here.
0:15:44 > 0:15:48So straight away, I'm thinking, "Let's get an en suite upstairs."
0:15:48 > 0:15:50You could fit a bath in there and a shower.
0:15:50 > 0:15:54Imagine a beautiful bedroom with an en suite bathroom.
0:15:54 > 0:15:56This place is really ticking all my boxes!
0:15:59 > 0:16:02I seem to have become this cottage's number one fan.
0:16:02 > 0:16:05I think it's because it's so versatile.
0:16:09 > 0:16:12With a new bathroom suite and a spruce-up in the bedrooms,
0:16:12 > 0:16:14this place could be a gem.
0:16:16 > 0:16:18What does the local estate agent make of the potential
0:16:18 > 0:16:22of this tucked-away town cottage?
0:16:22 > 0:16:25Internally, I would say it pretty much needs a full refurbishment,
0:16:25 > 0:16:28as in kitchens, bathrooms, etc.
0:16:28 > 0:16:30In respect of the two rooms downstairs as well,
0:16:30 > 0:16:35I think by opening those rooms into one, that would also improve it.
0:16:35 > 0:16:39But you would need to look at the structural issues in respect to doing that.
0:16:39 > 0:16:42So, there are some changes you could make
0:16:42 > 0:16:46but one thing you can't change is access to the cottage and the parking.
0:16:46 > 0:16:50There's no immediate parking that actually goes with the property.
0:16:50 > 0:16:54But there is parking in various places quite close to the property
0:16:54 > 0:16:59and I don't think that anybody buying a central property
0:16:59 > 0:17:02would find that of a great concern.
0:17:02 > 0:17:06Now, let's talk figures. How could it do on the rental market?
0:17:06 > 0:17:11I think you'd be looking somewhere in the order of £675 per calendar month.
0:17:11 > 0:17:14And potential re-sale values?
0:17:14 > 0:17:19I think when refurbed we would be looking at an asking price of around £175,000.
0:17:19 > 0:17:24Hoping to achieves between a band of £170,000 to £175.000.
0:17:24 > 0:17:29That's a massive jump up from what was an £80-90,000 guide price.
0:17:29 > 0:17:33So, to me, this cottage just gets more and more attractive.
0:17:34 > 0:17:36Well, you can tell I'm totally sold on this place.
0:17:36 > 0:17:40People like me will be really attracted to its central location.
0:17:40 > 0:17:45I think others might be put off by the lack of parking and vehicular access.
0:17:45 > 0:17:47Somebody wanted this cute little cottage.
0:17:47 > 0:17:49Let's find out who that was, as we go to auction.
0:17:52 > 0:17:56Lot 32. Lovely little cottage, needs everything doing to it.
0:17:56 > 0:17:59For improvement and refurbishment. Guided at £80,000 to £90,000.
0:17:59 > 0:18:03Lots of interest here, start me at 80,000 to start. 80, I have. 85.
0:18:03 > 0:18:1185 is bid and 90 and 95. 95. I'm bid 100. 100, I have. At 105. 105.
0:18:13 > 0:18:15And 110.
0:18:15 > 0:18:17105, I have, gentleman's bid by the door,
0:18:17 > 0:18:19but I think the lady's got control.
0:18:19 > 0:18:26At £105,000, I'm bid. All out in front at £105,000. 108, do I see?
0:18:26 > 0:18:31£105,000 then. Being sold for the first time at £105,000.
0:18:31 > 0:18:37Being sold for the second time, gentleman's bid on my right-hand side at £105,000.
0:18:37 > 0:18:42Being sold for the third and final time at £105,000, are you all done?
0:18:42 > 0:18:46Sold at 105. That's B531. Thank you very much.
0:18:46 > 0:18:51So, for £105,000, the successful bidders for the Hive cottage
0:18:51 > 0:18:53were Trevor and Jan.
0:18:53 > 0:18:58Trevor's a painter and decorator, while wife Jan has worked as a PA.
0:18:58 > 0:19:01I wondered why they felt this place was the right buy for them.
0:19:01 > 0:19:04Guys, congratulations.
0:19:04 > 0:19:07So, Jan, when you first walked into this property, explain to me how you felt?
0:19:07 > 0:19:12Well, what happened, we came to have a look around before the person came with the keys.
0:19:12 > 0:19:15We were looking through the window and I said, "Oh, I love it, I love it!"
0:19:15 > 0:19:19Obviously, we came in and you just think, "oh".
0:19:19 > 0:19:25It's got this fantastic feel to it. It's ideal for what we want, which is, sort of, a holiday home.
0:19:25 > 0:19:28So the reason for buying this is not for investment.
0:19:28 > 0:19:32- It's for you guys to enjoy it? - Yes, basically.- Brilliant.
0:19:32 > 0:19:34So, Trevor, tell me, why this area?
0:19:34 > 0:19:40Well, we've lived about an hour away for 23 years
0:19:40 > 0:19:42and we just love it down here.
0:19:42 > 0:19:46There's so much to do. Lots of nice restaurants, pubs.
0:19:46 > 0:19:48It's a, sort of, old fashioned sort of place as well.
0:19:48 > 0:19:53- It's got a nice feel about it.- Yeah. - Laid back.- Everybody seems to say good morning.- Old fashioned.
0:19:53 > 0:19:56Hythe itself might be friendly,
0:19:56 > 0:20:01but how are they going to improve the user-friendliness of their cottage?
0:20:05 > 0:20:07This will be just one big area.
0:20:07 > 0:20:11We'll open it up to the garden and we'll have decking out there,
0:20:11 > 0:20:12so we can sit outside.
0:20:12 > 0:20:15Upstairs, what changes are you going to make up there?
0:20:15 > 0:20:19- Talk to me about the bathrooms and the en suites. - The back bedroom has, obviously,
0:20:19 > 0:20:22been used as a washing machine facility.
0:20:22 > 0:20:24So, what we're going to do in there,
0:20:24 > 0:20:30we're going to re-configurate everything so we've got a toilet in there
0:20:30 > 0:20:33- and put a door on it.- That will be an en suite to that back bedroom, effectively.
0:20:33 > 0:20:38Then, doing much the same thing in the front bedroom.
0:20:38 > 0:20:42Doing the toilet, but just having a shower in there and re-configurate that.
0:20:42 > 0:20:47So anybody who stays in the other bedroom has got their own facilities.
0:20:47 > 0:20:53- So, guys, what's your budget? - If I was doing it up, I'd probably spend £6,000/£7,000 doing it up.
0:20:53 > 0:20:58Just basic. And probably selling it on.
0:20:58 > 0:21:01For our own use, I've budgeted £20,000.
0:21:01 > 0:21:05- Oh, so you're going the extra mile? - Yeah. Well, we can afford it and we want to do it.
0:21:05 > 0:21:09So, Jan, tell me your vision. What do you think it's going to look like, the end result?
0:21:09 > 0:21:12I think it will be quite contemporary,
0:21:12 > 0:21:16but with a, sort of, nice period cottage feel to it as well.
0:21:16 > 0:21:21Upstairs I want it to be quite romantic with nice, sort of, Victorian brass beds.
0:21:21 > 0:21:23A bit of rosebud sheets.
0:21:23 > 0:21:27Really, as it's a holiday home, we don't want it to be too much work.
0:21:27 > 0:21:30- Yeah.- Because we do enough of that in our own home.
0:21:30 > 0:21:33For me, I want to come here, it's, sort of, work-free.
0:21:33 > 0:21:36We can go to some nice restaurants, won't have to do much cooking.
0:21:36 > 0:21:40Make it as user-friendly as possible.
0:21:40 > 0:21:42- # I need a holiday - I need a holiday
0:21:42 > 0:21:46# I need a holiday with my friends.
0:21:46 > 0:21:49- # I'm working every day - I need a holiday
0:21:49 > 0:21:51# I'm working every day For the weekend... #
0:21:51 > 0:21:55This cottage might eventually be their holiday home
0:21:55 > 0:21:57but it's going to be far from a holiday
0:21:57 > 0:22:01to turn it into that contemporary, but cosy cottage that Jan hopes for.
0:22:01 > 0:22:05And there is a lot of work to do, but once you strip it back
0:22:05 > 0:22:09and reinstate everything, you know, it all comes together, doesn't it?
0:22:09 > 0:22:14- And, are you quite confident that you can do that? - I am pretty confident, yeah. Yeah.
0:22:14 > 0:22:17- I've been in the building trade all my life.- So what do you do?
0:22:17 > 0:22:22- I am a painter and decorator.- Ah. So this has got your name all over it then?- Yeah.- Perfect!
0:22:22 > 0:22:27- Get the paintbrushes out, write Trevor all over the walls.- Not necessarily putting Trevor on it.
0:22:27 > 0:22:31No, that wouldn't look good, would it? So, Jan, what do you do?
0:22:31 > 0:22:35I was a secretary for many years, PA and that sort of work. I also sing.
0:22:35 > 0:22:42Last year I was successful in joining a group called The Harmonies, The Voices Of The WI.
0:22:42 > 0:22:46- What's she like then, Trevor? Is she a good singer?- Well, I think so.
0:22:46 > 0:22:50I'm her biggest fan. I must admit, I think she's excellent.
0:22:50 > 0:22:55- Does she sing while she's doing the housework?- Jan sings all the time.
0:22:55 > 0:22:59- Does she?- Where ever she is. Yes. She sings all the time.
0:22:59 > 0:23:01- Go on, Jan, give us a line.- OK.
0:23:01 > 0:23:06# Somewhere over the rainbow
0:23:06 > 0:23:09# Way up high
0:23:09 > 0:23:12# There's a land that I heard of
0:23:12 > 0:23:16# Once in a lullaby... #
0:23:16 > 0:23:21Do you know what, that's the first time on Homes Under The Hammer somebody's ever sung to me.
0:23:21 > 0:23:24- That's my favourite song. - Oh, wow.- Is it? Oh, blimey!
0:23:24 > 0:23:28- That's a lovely song. Listen, good luck with everything.- Thank you.
0:23:28 > 0:23:31I want lots of singing and working on this beautiful holiday home.
0:23:31 > 0:23:34- Thank you, Lucy.- I cannot wait to see what it looks like.- Yeah.
0:23:34 > 0:23:39- Really lovely to meet you both today. - And you.- Congratulations, good luck.- Thanks, Lucy.- Thank you.
0:23:39 > 0:23:48# Somewhere over the rainbow... #
0:23:48 > 0:23:51So, with Jan singing her way through the refurbishment,
0:23:51 > 0:23:54while Trevor tries to hit the right notes with the changes,
0:23:54 > 0:23:58let's hope their dreams for this cottage really do come true.
0:23:58 > 0:24:02# The dreams that you dare to dream
0:24:02 > 0:24:07# Really do come true... #
0:24:07 > 0:24:08One thing's for sure,
0:24:08 > 0:24:11Trevor and Jan are head-over-heels with this place.
0:24:11 > 0:24:16They can't wait to get started. How will they get on refurbishing it?
0:24:16 > 0:24:20The lack of parking and vehicular access may cause a real problem for the duo.
0:24:20 > 0:24:25But what I am sure of is that this is not a money making exercise for the couple,
0:24:25 > 0:24:29but a sure-fire way of just enhancing their lifestyle.
0:24:29 > 0:24:32You can find out how they get on later in the programme.
0:24:32 > 0:24:37Coming up, a plot in Wiltshire with planning permission to build a three-bedroom house.
0:24:37 > 0:24:42Giving the guide price was £45,000, it sounds very interesting.
0:24:42 > 0:24:46Back in Kent, Trevor's been learning the ropes of renovation.
0:24:46 > 0:24:49I looked up some old seaman's knots
0:24:49 > 0:24:53and I can tie anything on that roof rack now.
0:24:54 > 0:24:56But first, in Bishop Auckland,
0:24:56 > 0:24:59there's a shock in store for Alison and Sean.
0:24:59 > 0:25:03- What?!- No way!- Oh, my God! For real?
0:25:07 > 0:25:10We return now to Bishop Auckland where Alison and her husband Sean
0:25:10 > 0:25:16paid £42,000 for this end of terrace in Alison's home town.
0:25:16 > 0:25:18She's a PR manager and Sean's a mechanic
0:25:18 > 0:25:21and they now live in Manchester.
0:25:21 > 0:25:24They're both in their early 30s and have already started to build
0:25:24 > 0:25:27a small portfolio of properties for their retirement.
0:25:27 > 0:25:32They've financed the purchase from a mortgage and some financial help from Alison's dad.
0:25:32 > 0:25:34Although the house was tired and dated,
0:25:34 > 0:25:37Sean was confident they could turn it round.
0:25:39 > 0:25:44Obviously, there's quite a bit that needs to be done. The bathroom, for one, needs to be renovated.
0:25:44 > 0:25:49- The kitchen, we're going to leave. - We need to get rid of some of the awful features, like this wall.
0:25:49 > 0:25:53- And the garden needs a lot of work. - Yeah, the garden, there's lots of stuff out there.
0:25:53 > 0:25:55It's now just four months later.
0:25:55 > 0:26:00Alison and Sean have worked fast and the house is finished.
0:26:02 > 0:26:05The garden's been tidied up and the picket fence's been painted.
0:26:05 > 0:26:08Plus the upstairs windows have been replaced.
0:26:10 > 0:26:16Inside, one of those trusty old magnolia makeovers has worked again.
0:26:16 > 0:26:19The brickwork and cladding have gone from the chimney breast
0:26:19 > 0:26:22and the large living room is now tastefully decorated.
0:26:22 > 0:26:26Sean and Alison have already found a tenant, so the house is a home.
0:26:26 > 0:26:29Although the kitchen only needed a good clean,
0:26:29 > 0:26:32the place has been redecorated throughout.
0:26:32 > 0:26:34What else did they concentrate their efforts on?
0:26:37 > 0:26:40The big thing for us was that we didn't want to go over the top
0:26:40 > 0:26:44and spend a whole bunch of money on stuff that didn't need to be done.
0:26:44 > 0:26:47The main thing was to make sure the central heating was working.
0:26:47 > 0:26:49To do that job properly.
0:26:49 > 0:26:51Apart from getting a new boiler,
0:26:51 > 0:26:56extra radiators were also required downstairs.
0:26:56 > 0:27:00Upstairs, the two bedrooms accommodate the new tenant's belongings
0:27:00 > 0:27:06and the former bathroom and loo have been amalgamated, as Alison explains.
0:27:06 > 0:27:10Well, this was originally two separate rooms.
0:27:10 > 0:27:13We knocked it through to create a bit more space while we updated everything.
0:27:13 > 0:27:17We kept the bath because it was cast iron, in quite nice condition.
0:27:17 > 0:27:20We just got a new toilet and sink. We re-plastered everything.
0:27:20 > 0:27:25Did the new tiling. Installed a new shower. So, brought it up-to-date.
0:27:25 > 0:27:30This two-month makeover didn't end INSIDE.
0:27:30 > 0:27:31In the back garden,
0:27:31 > 0:27:35we probably went through the biggest transformation and the hardest work.
0:27:35 > 0:27:39There were two ponds with rocks and bramble growing all over it.
0:27:39 > 0:27:41So we took it all out.
0:27:41 > 0:27:45We tilled the whole back garden, all the grass and re-seeded it.
0:27:45 > 0:27:50We made a nice fence in the back to cover up that old shed and repainted everything -
0:27:50 > 0:27:54just to make it look a lot nicer - and threw some stone down.
0:27:54 > 0:27:57Alison and Sean live a couple of hours away in Manchester
0:27:57 > 0:28:01and both work full-time. They've worked every weekend on the house
0:28:01 > 0:28:05and even took a week's holiday at the end to get it finished.
0:28:05 > 0:28:09We spent a whole night, it was like a Saturday night, tiling the bathroom, which is fun.
0:28:09 > 0:28:13- I cut the tiles, she stuck them on. - Like a production line.- It was good.
0:28:13 > 0:28:16It's nice to have little ways to do stuff. It was fun.
0:28:16 > 0:28:18I go painter's elbow. Just magnolia on every wall.
0:28:18 > 0:28:23We kept thinking that it'll pay off one day, so it'll be worth it.
0:28:23 > 0:28:26Well, it has. They've already got a tenant.
0:28:26 > 0:28:31There's high demand for rented accommodation locally, so they've bought in a sensible area.
0:28:31 > 0:28:35But have they stuck to their budget?
0:28:35 > 0:28:39Our original budget was three to five.
0:28:39 > 0:28:42But we went to five and then we went to seven.
0:28:42 > 0:28:47Time to see what two local estate agents think of this makeover.
0:28:47 > 0:28:51Returning to the property, it's been re-decorated throughout
0:28:51 > 0:28:54and new carpets, looks very light, bright and clean.
0:28:54 > 0:28:57The property's been decorated to a modern standard.
0:28:57 > 0:28:59It's a nice family home
0:28:59 > 0:29:00and I think the garden is a good size.
0:29:00 > 0:29:04But Alison and Sean always intended to rent it out,
0:29:04 > 0:29:09and have sensibly concentrated on replacing the boiler,
0:29:09 > 0:29:12ensuring the house is safe to rent and adequately decorated.
0:29:12 > 0:29:15So, what rental income could they achieve?
0:29:15 > 0:29:18In the current market, the property would probably achieve
0:29:18 > 0:29:21something in the region of £430 per calendar month.
0:29:21 > 0:29:23In the current market,
0:29:23 > 0:29:27I see this property achieving £400 per calendar month for rental.
0:29:27 > 0:29:29We're renting it out for about 380 at the moment,
0:29:29 > 0:29:32so we thought that was more or less right.
0:29:32 > 0:29:35So, yeah. It's good to know that we're not too far off the mark.
0:29:36 > 0:29:39Has their investment increased in value?
0:29:39 > 0:29:43They paid £42,000 at auction, and their budget was 7,000.
0:29:43 > 0:29:46So they've got £49,000 invested here.
0:29:48 > 0:29:51A property like this, in the current market,
0:29:51 > 0:29:54I'd recommend an asking price in the region of £85,000.
0:29:54 > 0:29:55In the current market,
0:29:55 > 0:29:59I would see this property achieving in the region of £85,000.
0:29:59 > 0:30:03- What?!- No!- Oh, my God! For real?
0:30:04 > 0:30:08We never - we thought it would have a five on the front at best.
0:30:08 > 0:30:11Yeah, we were thinking around 50, to be honest with you. But I'd say...
0:30:11 > 0:30:15I'd say we should put it up for sale, to be honest with you!
0:30:15 > 0:30:18I can see why! After just four months,
0:30:18 > 0:30:23they've made a potential gross profit of £36,000 here.
0:30:23 > 0:30:25But they have a regular income
0:30:25 > 0:30:28and could possibly re-mortgage at a higher value,
0:30:28 > 0:30:31allowing them to release some capital for their next project.
0:30:31 > 0:30:34I think we'll rent it out, for the time being.
0:30:34 > 0:30:37We've got a young mum living here, who's very happy.
0:30:37 > 0:30:40So I think we'll stay as is for the moment.
0:30:40 > 0:30:44- And then further down the line, who knows, we might live in it ourselves, one day.- Yeah!
0:30:44 > 0:30:48- Or extend. Or sell it on, if the market picks up.- Picks up?
0:30:48 > 0:30:52- We're already getting 80 grand for it! - HE LAUGHS
0:30:58 > 0:31:02I'm in Bradenstoke, a small village in Wiltshire,
0:31:02 > 0:31:05close to the towns of Chippenham and Wootton Bassett.
0:31:05 > 0:31:09Bradenstoke's history dates back to medieval times
0:31:09 > 0:31:12and it grew up around the local priory.
0:31:12 > 0:31:16So, am I here to see some half-timbered, beautiful property?
0:31:16 > 0:31:19Actually...no.
0:31:19 > 0:31:24It's a plot of land, formerly part of the garden of this property here.
0:31:24 > 0:31:27And here it is. It's nice and level, which is good news.
0:31:27 > 0:31:30Even better, it's got planning permission granted
0:31:30 > 0:31:33for the construction of a three-bedroom detached property.
0:31:33 > 0:31:37Which, given the guide price, which is just £45,000,
0:31:37 > 0:31:39is sounding very interesting.
0:31:39 > 0:31:43Now, for pricey Wiltshire, that's a low guide price.
0:31:43 > 0:31:46I reckon that's because the neighbours might be a bit noisy,
0:31:46 > 0:31:50as RAF Lyneham used to own the plot behind this house.
0:31:50 > 0:31:55Although the low cloud base means you can't see those huge Hercules carriers taking off,
0:31:55 > 0:31:57you can certainly hear them.
0:31:59 > 0:32:04So, whatever develops here, they'd better install triple glazing.
0:32:04 > 0:32:07These are the plans that were passed. And the first thing I notice
0:32:07 > 0:32:12is the positioning of the property on the plot. Much nearer the road than this house, which is good news.
0:32:12 > 0:32:16You want to keep as much separation between this house and the new house as possible.
0:32:16 > 0:32:20A detached house, three bedrooms, with a separate detached garage. We like that.
0:32:20 > 0:32:23And it looks like it's in keeping with the local area.
0:32:23 > 0:32:27Upstairs, basically three bedrooms - one big one and two smaller ones.
0:32:27 > 0:32:31Downstairs, a lounge and dining room, a kitchen, and stairs in the middle.
0:32:31 > 0:32:34All in all, pretty good. Though you could think about
0:32:34 > 0:32:36putting something else on the plot in place of this.
0:32:36 > 0:32:39However, do that at your peril. I've done a bit of digging around
0:32:39 > 0:32:44and I've discovered that it took seven years to get these plans passed.
0:32:44 > 0:32:46If you chose to stick to the plans,
0:32:46 > 0:32:50then the house also has to be constructed in Cotswold stone,
0:32:50 > 0:32:53with a slate roof and cast iron guttering.
0:32:53 > 0:32:55However, before you start to build,
0:32:55 > 0:32:58there may well be a slippery problem to deal with.
0:33:01 > 0:33:05- HE IMPERSONATES DAVID ATTENBOROUGH: - Here in the undergrowth of the garden,
0:33:05 > 0:33:08you never know what you might find.
0:33:08 > 0:33:12And in this part of Wiltshire, it might even be a great crested newt.
0:33:12 > 0:33:15Now, the great crested newt is actually an endangered species.
0:33:15 > 0:33:19And as part of the planning consent for the construction of the house here,
0:33:19 > 0:33:20and, in fact, all round this area,
0:33:20 > 0:33:26you have to have a great crested newt survey done before you can build.
0:33:26 > 0:33:28That's going to cost you about £300.
0:33:28 > 0:33:30If you find newts, you have to re-house them.
0:33:30 > 0:33:34In this case though, the good news is it's an newt-free zone.
0:33:34 > 0:33:36Well, good news for the developers, anyway.
0:33:36 > 0:33:41'Well, I suppose no newts is good newts, in this case!'
0:33:41 > 0:33:45But it's not just newts and noise that you have to deal with here.
0:33:45 > 0:33:47There's also financial issues.
0:33:47 > 0:33:51The plot also has a Section 106 contribution attached to it.
0:33:51 > 0:33:54Section 106 is sometimes known as a tax on developers.
0:33:54 > 0:33:58Basically, they have to pay a certain amount of money when they buy a plot,
0:33:58 > 0:34:02which goes to building low-cost housing or maybe helping with the local infrastructure -
0:34:02 > 0:34:06parkland, or whatever it might be. Whatever happens, it has to be paid.
0:34:06 > 0:34:09And in this case, it's around £32,000.
0:34:09 > 0:34:14You have to keep in mind that that £32,000
0:34:14 > 0:34:17must be paid on top of the purchase price at auction
0:34:17 > 0:34:21which, perhaps, accounts for that low £45,000 guide price.
0:34:21 > 0:34:25The actual amount of Section 106 contribution varies from build to build.
0:34:25 > 0:34:30Basically, the more people likely to live in a property, the more you have to pay.
0:34:32 > 0:34:35We asked a local property expert, from the auction house that sold it,
0:34:35 > 0:34:39to give us his opinion on this Bradenstoke building plot.
0:34:39 > 0:34:42The plans dictate for a three-bedroomed detached house
0:34:42 > 0:34:43with a garage.
0:34:43 > 0:34:47It's as good as you're going to get on the plot. It's not the biggest in the world.
0:34:47 > 0:34:52Bigger house means very little garden and that's overdevelopment.
0:34:52 > 0:34:55But what about the problem with those noisy neighbours?
0:34:55 > 0:34:59The plot is situated virtually under the flight path from RAF Lyneham
0:34:59 > 0:35:02which currently is, obviously, a problem. It can get quite noisy.
0:35:02 > 0:35:05However, the airfield is supposed to be closing down in,
0:35:05 > 0:35:08I don't know, three or four years' time.
0:35:08 > 0:35:10So once the house is up and lived in,
0:35:10 > 0:35:12shortly, it shouldn't be such a problem.
0:35:12 > 0:35:16That's good news but will that Section 106 charge
0:35:16 > 0:35:19of nearly £32,000 put off buyers?
0:35:19 > 0:35:22The Section 106 on the building plot is very normal.
0:35:22 > 0:35:27In North Wiltshire all village plots have a Section 106 put on them.
0:35:27 > 0:35:32Any developer/builder takes that into account in the amount of money they're going to spend on the plot.
0:35:32 > 0:35:34Once built, what are the options?
0:35:34 > 0:35:38What sort of value could the new build fetch?
0:35:38 > 0:35:41Once the property's completed and built to the existing plans,
0:35:41 > 0:35:45I would expect to achieve a re-sale figure in the region of £275,000.
0:35:45 > 0:35:48Is there a healthy rental income market here?
0:35:48 > 0:35:51The property, once completed, I think would rent very well
0:35:51 > 0:35:55and I would expect to achieve in the region of £900 per calendar month.
0:35:55 > 0:35:59So, a few noise concerns from adjoining RAF Lyneham
0:35:59 > 0:36:02but, apart from that, it's a good building plot,
0:36:02 > 0:36:05in a popular village and it does have the huge advantage
0:36:05 > 0:36:08of that planning consent already being in place.
0:36:08 > 0:36:11Let's see who bought it when it went under the hammer.
0:36:14 > 0:36:16We come to lot number five,
0:36:16 > 0:36:19which is the building plot at Bradenstoke.
0:36:19 > 0:36:23Start me at £50,000 someone. 45, the guide then.
0:36:23 > 0:36:2645, OK we'll start there. 45. We'll go on one, shall we?
0:36:26 > 0:36:32At £45,000 I'm bid for lot number five. At 45. At £45,000. 46. 47.
0:36:32 > 0:36:39£47,000, eight no say. At 48. OK at 48, now nine no say. 49 anyone?
0:36:39 > 0:36:4449, fill it at 50. At £49,000. 50, somebody, please. 50, anyone?
0:36:44 > 0:36:4850, I've got over there. OK £50,000 I'm bid. It's over there at £50,000.
0:36:48 > 0:36:53I'll take one from anyone. Yeah, 51. I've got it OK to the hand. 51, 52.
0:36:53 > 0:36:56It's against you now, sir. 53, to the front. 53.
0:36:56 > 0:36:59And, at the back, 54, if you like. 54, I've got at the back.
0:36:59 > 0:37:04Now to you, sir, if you like, 55. 55. 56, the hand. OK.
0:37:04 > 0:37:1057 to you, sir. 57. 58, come again sat down. At £57,000.
0:37:10 > 0:37:14OK, it's back to you with the glasses, at £57,000.
0:37:14 > 0:37:18I'll take from eight from anybody or £500, if you like. £500.
0:37:18 > 0:37:25I've got you, sir. 57,500 sat down. OK, 58 on the wall. 58. 58,500, sir?
0:37:25 > 0:37:29No. At £58,000. Then, OK, we mean it this time.
0:37:29 > 0:37:31At £58,000 then for the first time.
0:37:31 > 0:37:34£58,000, your bid then for the second time.
0:37:34 > 0:37:37£58,000. It's going to be sold, no mistake.
0:37:37 > 0:37:40£58,000, third and last time. And your number, sir, is?
0:37:40 > 0:37:43That final successful bid of £58,000
0:37:43 > 0:37:48was made by Wiltshire-based business partners Chris, on the left here, and Adrian.
0:37:48 > 0:37:52The pair have been property-developing together since 2004,
0:37:52 > 0:37:54but this is their first purchase at auction.
0:37:54 > 0:37:58And what could be better than to meet up at their local village pub
0:37:58 > 0:38:01to find out about their plans for the plot?
0:38:01 > 0:38:04Chris, Adrian, lovely to meet you both, and much more sensible
0:38:04 > 0:38:09- to meet in the local pub rather than at the freezing cold plot.- Yep.- Yep.
0:38:09 > 0:38:11Tell me why you wanted to buy the bit of land.
0:38:11 > 0:38:15Well, we've been working together since 2004.
0:38:15 > 0:38:18We formed the company together. I rent houses.
0:38:18 > 0:38:20Adrian's an extremely good builder.
0:38:20 > 0:38:24We started by building a house and selling it.
0:38:24 > 0:38:28We've continued to build two houses that we rented.
0:38:28 > 0:38:32So we've got a small portfolio. We have been looking for some time
0:38:32 > 0:38:36to try and find the right type of property to carry on the business.
0:38:36 > 0:38:42And, finally, after looking for a couple of years, we found this one.
0:38:42 > 0:38:46- What was it about this particular plot that you liked so much? - The location really.
0:38:46 > 0:38:50That was the main thing and it suited our budget,
0:38:50 > 0:38:54because we couldn't buy too large otherwise we couldn't afford to build.
0:38:54 > 0:38:57It sounds as though, after a long search,
0:38:57 > 0:39:01Chris and Adrian have finally got the perfect fit for their next project.
0:39:01 > 0:39:05But it seems that the current plans may need a re-think.
0:39:05 > 0:39:08We've had a meeting with the planners.
0:39:08 > 0:39:11They have said that one of the criticisms
0:39:11 > 0:39:14was that it looked very much like a townhouse in the middle of a village.
0:39:14 > 0:39:18We feel that it should look very much like the property next door.
0:39:18 > 0:39:22Apart from that, the planners have said, if we wish to make any changes at all,
0:39:22 > 0:39:25we have to re-apply for permission.
0:39:25 > 0:39:30If we're going to re-apply, we've decided to completely re-design it.
0:39:30 > 0:39:36- It took seven years to get the planning through.- Apparently so. - This is what we've heard.
0:39:36 > 0:39:40And you're going to start again?! You can't risk it taking seven years, can you?
0:39:40 > 0:39:42We've still got something,
0:39:42 > 0:39:46if we have to, we can still build the original one because we've got the permission.
0:39:49 > 0:39:53In an ideal world, Chris and Adrian would like to get planning permission in eight weeks
0:39:53 > 0:39:58to change the original planned three-bed detached to a slightly bigger four bed,
0:39:58 > 0:40:01with the new build, hopefully, completed in six months.
0:40:01 > 0:40:06The team hope that the extra bedroom will make the whole project a financial success.
0:40:09 > 0:40:14Talk me through the numbers, Chris. Cost to build and potential sale?
0:40:14 > 0:40:17Well, there was the purchase of the land, which was 58
0:40:17 > 0:40:20so with solicitor's fees say 60.
0:40:20 > 0:40:23Cost to build, what would you say a conservative estimate?
0:40:23 > 0:40:28We've got a budget of £100,000 to build.
0:40:28 > 0:40:33And, hopefully, we will get a property worth £250,000 on there.
0:40:33 > 0:40:41But there is the case of we have to pay 106 contributions of £32,000.
0:40:41 > 0:40:43So that's a big chunk out.
0:40:43 > 0:40:49So it's going to be critical that we keep to the £100,000 in order to make a profit.
0:40:49 > 0:40:53All those outgoings could total a possible £192,000.
0:40:53 > 0:40:58So, Chris and Adrian will be watching the build costs closely.
0:40:58 > 0:41:00As for the future of that development,
0:41:00 > 0:41:05they feel that market forces mean this one won't be added to their portfolio.
0:41:05 > 0:41:11I think, in this instance, we'll probably just build to sell this one
0:41:11 > 0:41:16because, in the past what we've done, is we've built flats
0:41:16 > 0:41:21and we've rented them out, but that market has really, sort of, bottomed out.
0:41:21 > 0:41:25We've decided to build and sell for the time being.
0:41:25 > 0:41:27Listen, congratulations.
0:41:27 > 0:41:30We look forward to seeing how it progresses in the next few months.
0:41:30 > 0:41:31- Thank you.- Thank you.
0:41:32 > 0:41:35Well, Chris and Adrian have, certainly, got the experience needed
0:41:35 > 0:41:39to make this project a success, but I'm a bit concerned about the fact
0:41:39 > 0:41:42they've decided to go back to the drawing board on the planning.
0:41:42 > 0:41:47I think that might take them slightly longer to get past than they anticipate,
0:41:47 > 0:41:51but you can find out how they get on later in the show.
0:41:54 > 0:41:59Well, doing up property always takes longer than you think.
0:41:59 > 0:42:01You need to factor delays into your calculations.
0:42:01 > 0:42:04Have our buyers hit their budgets and their deadlines?
0:42:04 > 0:42:07Let's return and find out.
0:42:07 > 0:42:12In the popular Kent seaside town of Hythe, tucked along an alleyway,
0:42:12 > 0:42:14just off the town centre,
0:42:14 > 0:42:17I discovered what I thought could be a potential gem.
0:42:17 > 0:42:21Yes, this two-bed cottage was tired and run down,
0:42:21 > 0:42:23but it had so much scope for improvement.
0:42:23 > 0:42:28I wasn't alone in thinking this, as Maidstone-based couple, Trevor and Jan,
0:42:28 > 0:42:32snapped it up at auction for £105,000.
0:42:32 > 0:42:35We were looking through the window and I said, "Oh, I love it!"
0:42:35 > 0:42:40And, obviously, then we came in. You just think, "oh" it's just got this fantastic feel to it.
0:42:40 > 0:42:44It's just ideal for what we want, which is a holiday home.
0:42:45 > 0:42:50Trevor's a painter and decorator with over 30 years in the building trade.
0:42:50 > 0:42:54He hoped that with his experience and around £20,000,
0:42:54 > 0:42:57that he could make this the holiday home that he and Jan had dreamed of.
0:42:57 > 0:43:01Well, just three-and-a-half months later, we're back.
0:43:09 > 0:43:11What an impressive start!
0:43:11 > 0:43:15Freshly painted - which was only to be expected with Trevor in charge -
0:43:15 > 0:43:20with a smart black door, this place looks so much more inviting already.
0:43:20 > 0:43:23Basically, we've renovated everything.
0:43:23 > 0:43:28The only things that have stayed is the two front windows
0:43:28 > 0:43:30and, luckily, the boiler.
0:43:30 > 0:43:34Are those arches and stone cladding a thing of the past?
0:43:39 > 0:43:42Oh, yes, they certainly are.
0:43:46 > 0:43:49What a fantastic transformation.
0:43:49 > 0:43:53From sad and neglected to warm, bright and vibrant.
0:43:53 > 0:43:56I love it! And the kitchen?
0:43:56 > 0:44:00Well, you'd hardly recognise that it was the same space.
0:44:00 > 0:44:04Well, it was very dark. It wasn't really fitted.
0:44:04 > 0:44:09There were some pine units which were all falling apart
0:44:09 > 0:44:13and a dark green oven that was taped up because you couldn't use it.
0:44:13 > 0:44:17There was a window here but we decided to take the door out
0:44:17 > 0:44:20and put in the big window which has really brightened it up.
0:44:20 > 0:44:24I'm quite amazed how we fitted everything into such a small space
0:44:24 > 0:44:26and now it looks quite big, actually.
0:44:28 > 0:44:34They were able to get rid of the kitchen door by changing the way out through the courtyard.
0:44:38 > 0:44:40Basically, what we did was,
0:44:40 > 0:44:44one of my pet hates was the plastic windows, and I hated them.
0:44:44 > 0:44:47We put new windows in, we ripped down this bottom one
0:44:47 > 0:44:51and put bi-folding doors and done away with the back door
0:44:51 > 0:44:54and put a nice window in there.
0:44:54 > 0:44:56I'm really pleased how it's turned out.
0:44:56 > 0:45:02It's given it a cottagey feel and it's more in keeping with the area.
0:45:04 > 0:45:07With the new, decked courtyard, the fantastic new cladding
0:45:07 > 0:45:09and more traditional windows,
0:45:09 > 0:45:13Trevor and Jan have done wonders with this cottage.
0:45:13 > 0:45:16But what about upstairs?
0:45:16 > 0:45:19Remember those dreary rooms and wasted space?
0:45:25 > 0:45:28Well, they're certainly not that any more.
0:45:28 > 0:45:31The master bedroom has its own en suite...
0:45:41 > 0:45:46..while the smaller bedroom has exclusive use of the old bathroom area,
0:45:46 > 0:45:48which is now a modern shower room.
0:45:48 > 0:45:53I'm so impressed by what a great job the two of them have made of this cottage.
0:45:55 > 0:45:58Basically, I've done all the manual work.
0:45:58 > 0:46:01I've been coping with things being delivered at the house
0:46:01 > 0:46:04and, obviously, looking for things for this house,
0:46:04 > 0:46:09sourcing tiles, choose the furniture, so I've been doing a lot of things like that
0:46:09 > 0:46:12and, obviously, feeding him when he gets home.
0:46:12 > 0:46:16Trevor retired three months ago so he could concentrate on this
0:46:16 > 0:46:19and worked with builders he knew from Maidstone.
0:46:19 > 0:46:22Not only did he have a two-hour round trip every day,
0:46:22 > 0:46:27but once he got here, he had the tricky task of getting materials in and out of the cottage.
0:46:28 > 0:46:30Basically, how I got over it is,
0:46:30 > 0:46:33fortunately I've got a roof rack on the van
0:46:33 > 0:46:37and that got a real hammering and I've learnt to...
0:46:37 > 0:46:40I've looked up some old seaman's knots
0:46:40 > 0:46:44and I can tie anything on that roof-rack now.
0:46:44 > 0:46:47I've brought everything, virtually, here.
0:46:47 > 0:46:51Getting rid of rubbish has been sometimes an issue.
0:46:51 > 0:46:56Trev will come home with it and then I will put it in my car and take it to the tip.
0:46:56 > 0:47:01- We've had lots of... Well, you've had...- We've had three skips here.
0:47:01 > 0:47:05It was thanks to the local residents and neighbouring shops
0:47:05 > 0:47:09that helped him accommodate the skips and found some parking for him.
0:47:09 > 0:47:12Otherwise, this job could have been a nightmare.
0:47:12 > 0:47:17But now, all the to-ing and fro-ing is finished, how much has it all cost?
0:47:17 > 0:47:23Basically, outlay including buying it is 130,000.
0:47:24 > 0:47:28A total outlay of 130,000, including buying the cottage,
0:47:28 > 0:47:30seems fantastic value.
0:47:30 > 0:47:33What do two local estate agents make
0:47:33 > 0:47:35of what Trevor and Jan have achieved here?
0:47:35 > 0:47:38Absolutely fantastic property in a great central location.
0:47:38 > 0:47:40Really smart, beautifully done.
0:47:40 > 0:47:44The owners have done absolute wonders - really, really good.
0:47:44 > 0:47:47The property is superb.
0:47:47 > 0:47:51For a town-centre cottage, it oozes character.
0:47:51 > 0:47:54The only negatives really are the parking.
0:47:54 > 0:47:57It is difficult, it is a bit cosy with parking in the town centre
0:47:57 > 0:47:59as it's so busy, but it's not a deal breaker.
0:47:59 > 0:48:05Although they are unlikely to let it out, as they really bought this for their own use,
0:48:05 > 0:48:07could it command a decent rental return?
0:48:07 > 0:48:11We would be looking towards a rental price for a long-term rental
0:48:11 > 0:48:15of around about £695 per calendar month.
0:48:15 > 0:48:18Per calendar month, I would suggest £650.
0:48:18 > 0:48:21That's good. Very good, yeah.
0:48:21 > 0:48:27The agents estimate about £500 a week could be achieved on a holiday let.
0:48:27 > 0:48:31More importantly, how has their 130-grand-investment fared?
0:48:31 > 0:48:33If the property came on the market at the moment,
0:48:33 > 0:48:37I would suggest an asking price of £220,000.
0:48:37 > 0:48:41I think in today's market, you'd be looking to market the property
0:48:41 > 0:48:44at a price of approximately £225,000.
0:48:44 > 0:48:51- Oh, my God!- Didn't expect that.- No, I'm completely blown away by that.
0:48:51 > 0:48:55- Amazing.- I did a bit of research and I thought 175.
0:48:55 > 0:48:59I thought 185 at most. I said that to Trevor earlier.
0:48:59 > 0:49:01- Blown away with that. - My God, that's amazing.
0:49:01 > 0:49:03That's pretty impressive!
0:49:03 > 0:49:09They could potentially see a pre-tax profit of 90 to £95,000. Joy!
0:49:09 > 0:49:12They've obviously got an aptitude for this sort of thing,
0:49:12 > 0:49:16but would they be tempted to do another?
0:49:16 > 0:49:18- Not for a while.- Yeah, have a rest.
0:49:18 > 0:49:22- We've got to reconfigure things first.- Go on a nice holiday.
0:49:22 > 0:49:25- # I need a holiday - I need a holiday
0:49:25 > 0:49:29# I need a holiday With my friends... #
0:49:29 > 0:49:33Well, if Trevor wants a holiday, he doesn't need to look too far for one.
0:49:33 > 0:49:35It's now right on his doorstep.
0:49:40 > 0:49:43In the Wiltshire village of Bradenstoke,
0:49:43 > 0:49:45one of those rare commodities came up for auction -
0:49:45 > 0:49:49a piece of land with outline planning permission for a three-bed detached house.
0:49:49 > 0:49:53But this plot did have a few potential downsides.
0:49:53 > 0:49:57It had what's known as a 106 on it.
0:49:57 > 0:50:00That means that on completion of the new build,
0:50:00 > 0:50:03£32,000 has to be paid to the local council
0:50:03 > 0:50:05towards building community housing.
0:50:05 > 0:50:09Also, this plot was right next door to RAF Lyneham.
0:50:09 > 0:50:14But none of this put off Swindon-based property team Chris and Adrian,
0:50:14 > 0:50:17who purchased the land for £58,000 at auction.
0:50:17 > 0:50:21Despite it taking seven years to get its current outline planning permission,
0:50:21 > 0:50:27they thought some changes would do the development some good.
0:50:27 > 0:50:28# A change
0:50:28 > 0:50:30# A change will do you good
0:50:30 > 0:50:32# Do you good... #
0:50:33 > 0:50:36We've had a meeting with the planners
0:50:36 > 0:50:38and they have said that one of the criticisms
0:50:38 > 0:50:43was that it looked very much like a town house in the middle of a village.
0:50:43 > 0:50:47We feel that it should look very much like the property next door.
0:50:47 > 0:50:50Apart from that, the planners have said if we wish to make any changes at all,
0:50:50 > 0:50:54we have got to reapply for permission.
0:50:54 > 0:50:58If we're going to reapply, we've decided to completely redesign it.
0:51:05 > 0:51:08Changing hard-thought-through plans was a risk
0:51:08 > 0:51:10and could delay the process,
0:51:10 > 0:51:15but armed with a round £100,000 budget, the pair pushed on.
0:51:15 > 0:51:19And now, 17 months later, we're back.
0:51:24 > 0:51:26Well, it's up and it looks pretty good.
0:51:26 > 0:51:30Built in local stone but was it what they wanted?
0:51:36 > 0:51:38We did a separate application to try
0:51:38 > 0:51:43what we thought was to improve the overall design of the property,
0:51:43 > 0:51:47which was rejected by the planning authorities.
0:51:47 > 0:51:49We were left with no choice.
0:51:49 > 0:51:51We decided to build what was already there.
0:51:51 > 0:51:56# Oh and it's all right And it's coming on
0:51:56 > 0:51:59# We gotta get right back To where we started from... #
0:51:59 > 0:52:03So, they did have to go right back to where they'd started from.
0:52:03 > 0:52:07This delayed the work so the inside's nearly finished but not quite.
0:52:07 > 0:52:11The kitchen and utility area are all plastered
0:52:11 > 0:52:15and underfloor heating and utilities are in place.
0:52:15 > 0:52:20A good-sized lounge is being prepared to help the green credentials of the house.
0:52:20 > 0:52:22So this is the lounge.
0:52:22 > 0:52:25This is the flue for the wood-burning stove.
0:52:25 > 0:52:28Two reasons why we're having a wood-burning stove put in.
0:52:28 > 0:52:33One is it looks the part in a country cottage.
0:52:33 > 0:52:37The other one is because it helps with our energy-efficiency ratings.
0:52:37 > 0:52:40Upstairs, the three bedrooms
0:52:40 > 0:52:45and bathroom are also nearly ready for second fix and then decorating.
0:52:45 > 0:52:48But despite being tied to the original plans,
0:52:48 > 0:52:51they did manage to do some tweaks to the house.
0:52:52 > 0:52:55Well, the planning restrictions were frustrating
0:52:55 > 0:52:58but, obviously, we had to deal with it.
0:52:58 > 0:53:02It meant using the real stone, real slates
0:53:02 > 0:53:06and the cast-iron guttering and downpipes.
0:53:06 > 0:53:09One of the other planning restrictions
0:53:09 > 0:53:12is that we couldn't have any windows showing at the back of the house
0:53:12 > 0:53:15because of overlooking the other property.
0:53:15 > 0:53:19The way that we dealt with that was to have the architect draw up plans
0:53:19 > 0:53:23which meant we could use roof lights
0:53:23 > 0:53:25which would throw light down on to the hall
0:53:25 > 0:53:28and, similarly, in the main bedroom,
0:53:28 > 0:53:31there is another roof light that throws plenty of light
0:53:31 > 0:53:33into the main bedroom from the rear of the house.
0:53:33 > 0:53:37What that means is that we have plenty of natural light
0:53:37 > 0:53:38coming into the house.
0:53:38 > 0:53:43Once decorated, I can see this place being light and airy.
0:53:43 > 0:53:45They hope to finish it in another month.
0:53:45 > 0:53:47So, how has their partnership coped
0:53:47 > 0:53:50with the ups and downs of this new-build project?
0:53:50 > 0:53:56Adrian and I work extremely well. We've got total trust in each other.
0:53:56 > 0:53:58We complement each other.
0:53:58 > 0:54:02He lets me carry on with the building
0:54:02 > 0:54:05and we have other properties which we rent out
0:54:05 > 0:54:11and he deals with the rental and other issues involved with that.
0:54:11 > 0:54:14Clearly, it's a partnership that works very well
0:54:14 > 0:54:17and they both appreciate each other's roles.
0:54:17 > 0:54:20But in order to be successful, they still have to make money.
0:54:20 > 0:54:23So in the end, how much did it cost
0:54:23 > 0:54:26to build their three-bed detached house?
0:54:26 > 0:54:29So far, we've spent about 80,000.
0:54:29 > 0:54:32The original budget was just over 90,
0:54:32 > 0:54:35so we think we're quite within our budget.
0:54:37 > 0:54:41A £90,000 spend on top of the £58,000 purchase price
0:54:41 > 0:54:46plus the addition of the £32,000 they have to pay on completion,
0:54:46 > 0:54:50takes their total outlay to around £180,000.
0:54:50 > 0:54:53So, does it all add up to be a good purchase?
0:54:53 > 0:54:56What do two local estate agents think?
0:54:56 > 0:55:02The impressions are very good. It's well built, it's nicely presented.
0:55:02 > 0:55:05It needs finishing off obviously, but the quality of workmanship
0:55:05 > 0:55:09seems to be very high, which is a good selling point.
0:55:09 > 0:55:12I think the property's in keeping with the local village.
0:55:12 > 0:55:14I think the nature of the brickwork they used,
0:55:14 > 0:55:18and the reconstituted stone, helps the look of the property.
0:55:18 > 0:55:19Gives it that cottage feel.
0:55:19 > 0:55:22They're very keen to sell this house
0:55:22 > 0:55:25but surely renting out could yield a decent return?
0:55:25 > 0:55:29You would rent this house out for £650 a month.
0:55:29 > 0:55:33Rental, I would anticipate achieving a rental income
0:55:33 > 0:55:36of 850 to £900 per calendar month.
0:55:36 > 0:55:41As soon as this house is occupied, we have to pay the council
0:55:41 > 0:55:45for 106 contributions of about £32,000.
0:55:45 > 0:55:49To hold onto it and rent it is not an option, really.
0:55:49 > 0:55:50We do need to sell.
0:55:50 > 0:55:53They're clearly determined to sell, come what may.
0:55:53 > 0:55:59But with over £180,000 invested in their traditionally stone-built house,
0:55:59 > 0:56:04in the current market, is selling really the best option?
0:56:04 > 0:56:08The property would sell for £230,000.
0:56:08 > 0:56:13I would happily put the property to the open-market at £235,000.
0:56:13 > 0:56:17It sounds a little bit low, to be honest.
0:56:17 > 0:56:21Almost in the realms of not worth doing.
0:56:21 > 0:56:23Clearly, they're slightly disappointed,
0:56:23 > 0:56:27but there still could be a potential pre-tax profit of 50 to £55,000.
0:56:27 > 0:56:31So, how do they feel about this new-build project now?
0:56:31 > 0:56:34With the current market, I think, everybody's taking a hit
0:56:34 > 0:56:37so we're just going to have to take that hit as well.
0:56:37 > 0:56:40We have got the next one ready to move straight onto
0:56:40 > 0:56:42so were quite pleased about that.
0:56:44 > 0:56:47Well, that's the stories of the buyers on today's show.
0:56:47 > 0:56:50We'll have more for you next time and, as you know,
0:56:50 > 0:56:53anything can and does happen on planet property.
0:56:53 > 0:56:56Look forward to seeing you then for more Homes Under The Hammer.
0:56:56 > 0:56:57- Goodbye.- Goodbye.
0:57:00 > 0:57:03Subtitles by Red Bee Media Ltd
0:57:03 > 0:57:06E-mail subtitling@bbc.co.uk