0:00:02 > 0:00:05Hello! Now, with all the ups and downs of the property market,
0:00:05 > 0:00:08you really need to trust your instincts when buying.
0:00:08 > 0:00:12Nowhere is that more true than in the auction room.
0:00:12 > 0:00:14Join us, as we take the lottery out of property
0:00:14 > 0:00:16on Homes Under The Hammer.
0:00:41 > 0:00:45Buying at auction doesn't have to be a scary experience.
0:00:45 > 0:00:50If you do your research and stick to your budgets, you can buy with confidence.
0:00:50 > 0:00:53Today, we'll meet three buyers who hopefully did just that.
0:00:53 > 0:00:57Did they bag a bargain? Or did they get more than they bargained for?
0:00:57 > 0:00:59Here's what they bought.
0:01:01 > 0:01:06You'll need to dig deep at this derelict Darlington dwelling.
0:01:06 > 0:01:09It's a case of going back to foundations, I think.
0:01:11 > 0:01:15If time is tight, this one-bed flat in West Hampstead could be ideal.
0:01:15 > 0:01:19This is a flat that you can get in, you can do it up and you can get out.
0:01:21 > 0:01:26And in Seaton, Devon, this former social club with a first-floor flat went under the hammer.
0:01:26 > 0:01:27But why did it go to auction?
0:01:27 > 0:01:30I need to find out a bit more about the history of this place.
0:01:31 > 0:01:33All of these properties went to auction.
0:01:33 > 0:01:38And we'll find out who bought them and what they paid when they went under the hammer.
0:01:43 > 0:01:47Darlington, in the County of Durham, is probably most famous as
0:01:47 > 0:01:52the birthplace of the world's first steam-powered railway back in 1825.
0:01:52 > 0:01:57Today, the town centre's been spruced up and the trains,
0:01:57 > 0:01:58well, they're still here.
0:01:58 > 0:02:01They'll get you to Leeds in less than an hour
0:02:01 > 0:02:03and London in under three.
0:02:03 > 0:02:05How's that for a head of steam?
0:02:07 > 0:02:09# One ticket for a runaway train... #
0:02:11 > 0:02:17Just 500 manly strides from the train station is the property I'm here to see.
0:02:17 > 0:02:20It's on this street of attractive Victorian terraces.
0:02:20 > 0:02:24Very attractive, in fact, which makes me a little bit nervous,
0:02:24 > 0:02:28because the house had a guide price of just 35,000 quid.
0:02:30 > 0:02:34Well, clearly, you don't get all your windows for that.
0:02:34 > 0:02:36Let's see what else is lacking.
0:02:36 > 0:02:39# Walking on broken glass... #
0:02:41 > 0:02:44Right, well, it looks like you don't get floorboards either.
0:02:44 > 0:02:46Or, my guess,
0:02:46 > 0:02:48yeah, no pipes.
0:02:48 > 0:02:50Somebody's stolen those as well.
0:02:50 > 0:02:53Oh, well, who needs copper pipes anyway?
0:02:53 > 0:02:56Oh! Or electric light switches or cables?
0:02:56 > 0:03:01Blimey, this place really has had a good seeing to, shall we say?
0:03:01 > 0:03:04As you can see, it is in a real mess.
0:03:04 > 0:03:07Which is a shame, really, because if you can see through that,
0:03:07 > 0:03:10it's actually a big house.
0:03:10 > 0:03:14This is the living room area. A nice bay window there.
0:03:14 > 0:03:17Even these floorboards, I mean, they are scattered around,
0:03:17 > 0:03:22not exactly on the floor, as you'd like them to be, but they're still in a nice condition.
0:03:22 > 0:03:25So strip this back and you'd have a really impressive room.
0:03:25 > 0:03:29Ah, but it's a case of going back to foundations, I think.
0:03:31 > 0:03:34# Back to the start Back to the start again, I'll go
0:03:34 > 0:03:38# Back to the start... #
0:03:38 > 0:03:41It's always interesting to see a house taken back to basics.
0:03:41 > 0:03:44And this one is amongst the worst I've seen in terms of mess.
0:03:44 > 0:03:46It really needs everything done.
0:03:46 > 0:03:50The trail of devastation continues in the kitchen.
0:03:50 > 0:03:56At least, I assume it's a kitchen. It certainly doesn't much resemble one.
0:03:56 > 0:03:59As everywhere else, it's totally trashed and horribly ruined.
0:03:59 > 0:04:02But at least it's all ready for the skip.
0:04:02 > 0:04:06You've got to be careful you don't break any bones but, as viewings go,
0:04:06 > 0:04:08this one is rather hazardous.
0:04:10 > 0:04:13# I love the sound of breaking glass... #
0:04:13 > 0:04:16As I tiptoe my way upstairs, predictably,
0:04:16 > 0:04:19the bathroom is in a right old state.
0:04:19 > 0:04:24And the rear bedroom, well, the bay may look romantic from the rear,
0:04:24 > 0:04:27but it's more "windows, windows, wherefore art thou, windows?"
0:04:27 > 0:04:31than anything particularly poetic.
0:04:31 > 0:04:35There's a second bedroom in the middle, which is a decent size.
0:04:35 > 0:04:37Now onto the front.
0:04:37 > 0:04:40Well, clearly, the fairly bad state continues up here.
0:04:40 > 0:04:43But let's try and look beyond that for a moment.
0:04:43 > 0:04:46What you have got is three bedrooms,
0:04:46 > 0:04:49including this absolutely ginormous one.
0:04:49 > 0:04:53So, possibly, why don't we think about maybe converting this property into flats?
0:04:53 > 0:04:57One bedroom downstairs. A two-bedroom flat upstairs.
0:04:57 > 0:04:58That might be worth doing.
0:04:58 > 0:05:01But let's take the lead from the other properties
0:05:01 > 0:05:03in the street, as none of them have been converted into flats.
0:05:03 > 0:05:07And, actually, thinking about it, leave it as a family home.
0:05:07 > 0:05:09And what a wonderful family home it would be.
0:05:09 > 0:05:13So, for someone not scared of a bit of hard work - ha! -
0:05:13 > 0:05:16this house, which had a guide price of only 35,000,
0:05:16 > 0:05:18could prove to be a real bargain.
0:05:18 > 0:05:22But whoever purchased this place will need to be aware of more than
0:05:22 > 0:05:25just the property market as, just down the road,
0:05:25 > 0:05:29is a different kind of market altogether, Darlington Farmers Auction Mart.
0:05:32 > 0:05:36This isn't the kind of place we find organic vegetables,
0:05:36 > 0:05:39strange breads and rare-breed cheeses.
0:05:39 > 0:05:41This is the real deal.
0:05:41 > 0:05:45Yes, every week, thousands of cows, sheep and pigs are sold just here.
0:05:45 > 0:05:48Now, I'm not particularly sure I'd want to live very close to this.
0:05:48 > 0:05:51You can imagine the noise and the smells.
0:05:51 > 0:05:55But the good news is that this is actually being relocated out of town.
0:05:55 > 0:05:58So what will be here, maybe in the future,
0:05:58 > 0:06:00a shopping centre, supermarket, who knows?
0:06:00 > 0:06:03Well, as I said, at the end of the day, though, it is good moos. News.
0:06:03 > 0:06:04Moos?
0:06:04 > 0:06:09# Cut 'em out, ride 'em in Ride 'em in, cut 'em out, cut 'em out
0:06:09 > 0:06:11# Ride 'em in Rawhide... #
0:06:11 > 0:06:13We asked a local estate agent
0:06:13 > 0:06:15whether it would be worth working
0:06:15 > 0:06:19till the cows come home to get this house in order.
0:06:19 > 0:06:22First impressions of this house are that it really needs
0:06:22 > 0:06:25a lot of work doing to it. I think that's obvious.
0:06:25 > 0:06:28It's been taken back to the bare bones by the previous occupant.
0:06:28 > 0:06:31So it needs everything from top to bottom.
0:06:31 > 0:06:35So how much might the place achieve, once renovated?
0:06:35 > 0:06:37Completely refurbished,
0:06:37 > 0:06:41I could see the property realising about £90,000 in today's market.
0:06:41 > 0:06:43And the potential rental income?
0:06:43 > 0:06:46I think, for rental, this property would realise
0:06:46 > 0:06:50an income of about £400-425 per calendar month.
0:06:50 > 0:06:54Well, at first glance, this property is in a terrible state.
0:06:54 > 0:06:57You walk in and you want to walk straight out again.
0:06:57 > 0:07:00But just remember that guide price, 35,000 quid.
0:07:00 > 0:07:04The area is on the up and it's not just some pokey little terrace,
0:07:04 > 0:07:06it's a big Victorian affair.
0:07:06 > 0:07:10I think it's fantastic. Let's see who agreed when it went under the hammer.
0:07:10 > 0:07:12An end-terraced house which needs
0:07:12 > 0:07:14a little bit of renovation.
0:07:14 > 0:07:1735,000 plus, can I ask 35, anywhere?
0:07:17 > 0:07:20A bid of 35 to start. Anything further?
0:07:20 > 0:07:2236, 37.
0:07:22 > 0:07:2338.
0:07:23 > 0:07:2639, 40.
0:07:26 > 0:07:3041, 42, 43, 44.
0:07:30 > 0:07:3445, 46, 47, 48.
0:07:34 > 0:07:3649, 50.
0:07:36 > 0:07:4051, 52. 52,000, the gentleman sitting in the second row.
0:07:40 > 0:07:43Is there anything further? I'll take 500.
0:07:43 > 0:07:4552 and a half bid, new bidder in.
0:07:45 > 0:07:4853? 53 bid. 53 and a half.
0:07:48 > 0:07:5254. 54 and a half.
0:07:52 > 0:07:5655. 55 and a half.
0:07:56 > 0:07:5855,000, the gentleman sitting down again.
0:07:58 > 0:08:01We're going through at 55,000.
0:08:01 > 0:08:04Selling it once at 55. You're on the phone for the second time...
0:08:04 > 0:08:07At £55,000...
0:08:07 > 0:08:10Sold for 55,000 to the gentleman sitting in the second row.
0:08:10 > 0:08:14# Baby, you got it... #
0:08:14 > 0:08:19That successful bid of 55,000 was made by local couple Phil and Emma.
0:08:19 > 0:08:22Phil's a plumber and Emma's a primary school teacher.
0:08:22 > 0:08:25Sensibly, I met up with them back at THEIR home,
0:08:25 > 0:08:28just around the corner, which, I think it's fair to say,
0:08:28 > 0:08:32is in slightly better condition than their new investment.
0:08:32 > 0:08:37- Lovely to meet you both. - Nice to meet you.- Congratulations.
0:08:37 > 0:08:41- You obviously enjoy a challenge, then!- Yeah. Always up for a challenge.
0:08:41 > 0:08:44Tell me why you wanted to buy the house.
0:08:44 > 0:08:45Well, I've seen it there for a while,
0:08:45 > 0:08:48and it's just around the corner from where we live.
0:08:48 > 0:08:51I thought, well, I wanted to buy a house and that was the one I wanted.
0:08:51 > 0:08:53Fantastic! Tell me about you two, then.
0:08:53 > 0:08:56- Seven years, haven't we? - Yeah, seven years. Emma's a teacher.
0:08:56 > 0:09:00I'm a plumber by trade, but I do a bit of everything now.
0:09:00 > 0:09:04Property refurbishment. I do a lot of work for landlords and so on.
0:09:04 > 0:09:08Right, I'm glad you said you're a plumber, because there's definitely
0:09:08 > 0:09:11- some plumbing required in that place, isn't there?- And the rest!
0:09:11 > 0:09:13What did YOU like about it, Emma?
0:09:13 > 0:09:15Well, I hadn't seen it before we went to the auction.
0:09:15 > 0:09:20I'd seen the outside and I'd peered through the window, but you'd been round and done a quick viewing.
0:09:20 > 0:09:24- Yeah, had a quick look. - So when we bought it
0:09:24 > 0:09:28and we went round to look at it, it was just a total shock.
0:09:28 > 0:09:31All the floorboards are up, ready for me to put all the plumbing in.
0:09:31 > 0:09:34All the wiring's ready to go in. It's an easy job!
0:09:36 > 0:09:38# You make it easy
0:09:38 > 0:09:41# Easy... #
0:09:41 > 0:09:43Well, I wouldn't quite say that!
0:09:43 > 0:09:47But although this is Phil and Emma's first investment property,
0:09:47 > 0:09:51they've renovated their own house which, apparently, was in nearly as bad a way.
0:09:54 > 0:09:57Phil clearly has the skills to take on this project.
0:09:59 > 0:10:03Talk me through the process of exactly what you're going to do to it.
0:10:03 > 0:10:07Windows are going in as from next week. They're all ready to go in.
0:10:07 > 0:10:11We'll have Emma in, she's on holiday as from next week,
0:10:11 > 0:10:14so she'll be in ripping all the wallpaper off...
0:10:14 > 0:10:16- Wallpaper!- ..while I'm at work.
0:10:16 > 0:10:18We need to get it dried out,
0:10:18 > 0:10:23get all the damp seen to and then get it plastered.
0:10:23 > 0:10:25We'll go from there, room by room.
0:10:25 > 0:10:30And what are your expectations for the amount of money you're going to get back from it?
0:10:30 > 0:10:33Well, we paid 55,000 for the house.
0:10:33 > 0:10:37We're looking to get 105, 110 for it.
0:10:37 > 0:10:41And, hopefully, we should spend 10-12,000 on it.
0:10:41 > 0:10:45- So we should make a good bit of profit.- Mm.- Mm.
0:10:45 > 0:10:48And then plough that into the next project, whenever that might be?
0:10:48 > 0:10:49Yeah, next house.
0:10:49 > 0:10:53# It's easy... #
0:10:53 > 0:10:58The pair are happy to rent it out if they have to, which is wise.
0:10:58 > 0:11:02The area is improving and lenders are slowly relaxing.
0:11:02 > 0:11:04But there's still a long way to go.
0:11:04 > 0:11:09I'm quite concerned about that budget of £10-12,000 for all the work needed here.
0:11:09 > 0:11:13How is Phil going to manage it?
0:11:13 > 0:11:17The windows, I managed to get for 3,000.
0:11:17 > 0:11:19Plastering's going to cost us two.
0:11:19 > 0:11:21The electrics will be just about nothing.
0:11:21 > 0:11:23What do you mean electrics will cost nothing?
0:11:23 > 0:11:25I've got friends in the trade, good friends,
0:11:25 > 0:11:28so everyone will be helping out.
0:11:28 > 0:11:30Oh, terrific! That's the way to do it.
0:11:30 > 0:11:33So, on the face of it, that is a very tight budget but,
0:11:33 > 0:11:36- given your experience and friends, you should do it.- We should do it.
0:11:36 > 0:11:38Good, well, congratulations.
0:11:38 > 0:11:41Really looking forward to seeing how you get on with it.
0:11:41 > 0:11:43Yeah, same here.
0:11:43 > 0:11:45- And I wish you all the best. - Thank you.
0:11:45 > 0:11:50Well, everyone needs friends when it comes to doing up property.
0:11:50 > 0:11:54It's fantastic news if those friends happen to be in the trade.
0:11:54 > 0:11:58It turns this from being a seriously expensive project
0:11:58 > 0:12:00into something which is a bit more manageable.
0:12:00 > 0:12:02Phil has certainly got the skills.
0:12:02 > 0:12:07With those friends on board, maybe it will be a transformation when we return!
0:12:10 > 0:12:13This is West Hampstead in North London,
0:12:13 > 0:12:17sitting pretty between affluent Hampstead village
0:12:17 > 0:12:18and more urban Kilburn.
0:12:18 > 0:12:23It's period property heaven, with a good shopping street thrown in.
0:12:23 > 0:12:27It's desirable, without being as crazily expensive as Hampstead itself.
0:12:27 > 0:12:31So enough reasons to take a look at some property opportunities?
0:12:31 > 0:12:33I think so.
0:12:35 > 0:12:39West Hampstead, the birthplace of Dusty Springfield.
0:12:39 > 0:12:42It's like a little village near the centre of the city.
0:12:42 > 0:12:46# Wishing and hoping And thinking and praying... #
0:12:46 > 0:12:50With funky, independent shops, cafes and a bustling atmosphere,
0:12:50 > 0:12:53I can see why West Hampstead is so desirable.
0:12:53 > 0:12:57I can definitely understand why so many people choose to live here.
0:12:57 > 0:13:02The property I'm here to see is a ten-minute walk to the nearest tube station.
0:13:02 > 0:13:06So it's not transport on your doorstep, but it's liveable with.
0:13:06 > 0:13:09And the road the property's on, well, that's more than liveable.
0:13:09 > 0:13:12With these attractive, tall Victorian terraces, really nice.
0:13:12 > 0:13:15The lot that was up for auction is in this building.
0:13:15 > 0:13:20It has one bedroom and the guide price is 180,000.
0:13:20 > 0:13:23There are a total of five floors in the building and,
0:13:23 > 0:13:26straight through the communal front door,
0:13:26 > 0:13:29this flat is the first door on the right.
0:13:31 > 0:13:34Ah, well, straight into your main living area,
0:13:34 > 0:13:38which is your kitchen and your living quarters.
0:13:38 > 0:13:41A little bit disappointing. I'd hoped it might be a bit bigger than this.
0:13:41 > 0:13:44Square footage is a little bit on the small side here.
0:13:44 > 0:13:47But you have got this really nice bay window.
0:13:47 > 0:13:50It's quite weird, because you almost feel like the floor has been raised,
0:13:50 > 0:13:52because it's actually nearly my height.
0:13:52 > 0:13:55But you can see this is a flat that you can get in,
0:13:55 > 0:13:58you can do it up and you can get out.
0:13:58 > 0:14:00It is a quick refurb job.
0:14:00 > 0:14:03The kitchen, well, it's not in bad shape.
0:14:03 > 0:14:05It certainly needs a bit of a tweak.
0:14:05 > 0:14:10But I think you could get away with just revamping of this. And, of course, the units are OK.
0:14:10 > 0:14:14Along this little corridor, this is where it gets a bit dark, a little bit pokey.
0:14:14 > 0:14:16And into the bathroom area.
0:14:16 > 0:14:19Now, straightaway, I can see there's no bath in here.
0:14:19 > 0:14:22But I think, with a bit of careful planning,
0:14:22 > 0:14:25you could possibly get one in along here.
0:14:25 > 0:14:28I think a bath and a shower is the way to go.
0:14:28 > 0:14:33Also, you could rearrange the toilet and sink space to make sure you get that in nice and tightly.
0:14:33 > 0:14:35And look at these. Too many doors!
0:14:35 > 0:14:38What's through here? Ah, bedroom.
0:14:38 > 0:14:41Which is small. It takes a double bed but, with this size of room,
0:14:41 > 0:14:48my advice would be that it pays to get custom-made furniture to optimise every bit of space.
0:14:48 > 0:14:55In this part of town, the expectations for a refurbishment go beyond a mere splash of paint.
0:14:55 > 0:14:59So I'd be investing in solid wood floors, a new bathroom suite,
0:14:59 > 0:15:02kitchen and maybe restoring some of the character features.
0:15:02 > 0:15:04# I want love
0:15:04 > 0:15:08# But it's impossible... #
0:15:08 > 0:15:11The potential to add value to this small flat
0:15:11 > 0:15:15that had the relatively low guide price of 180,000
0:15:15 > 0:15:18could depend on just how much you're prepared to invest.
0:15:18 > 0:15:23I'm aware similar flats sold for around 300,000.
0:15:23 > 0:15:26I headed back to the high street for some light refreshment
0:15:26 > 0:15:29and to find out why the flat was guided at just 180,000.
0:15:32 > 0:15:36So, why so cheap? Well, it's the dreaded short lease.
0:15:36 > 0:15:41In this case, there's only 67 years left, and it does need renewing
0:15:41 > 0:15:45if you wanted to sell on or get any decent mortgage deal.
0:15:45 > 0:15:49In theory, buy it for the guide price, spend around 20,000 renewing the lease,
0:15:49 > 0:15:54add another 20,000 to do it up and you're still quids in.
0:15:54 > 0:15:58But new leases are complicated, they're time-consuming
0:15:58 > 0:15:59and completely frustrating.
0:15:59 > 0:16:03And the low guide price accounts for the risk factor involved here.
0:16:03 > 0:16:05Once your solicitor gets going on the legals,
0:16:05 > 0:16:07it could be all nice and straightforward.
0:16:07 > 0:16:10Or it could turn out to be a real headache and, pre-auction,
0:16:10 > 0:16:14there is no time for in-depth research.
0:16:14 > 0:16:17So it could seriously pay off.
0:16:17 > 0:16:20But don't assume it will be a piece of cake.
0:16:20 > 0:16:24# Can I have another piece of chocolate cake? #
0:16:24 > 0:16:28Well, that guide price of 180,000, for this area,
0:16:28 > 0:16:31is extremely tempting.
0:16:31 > 0:16:34But, like too much cake, a short lease on this place
0:16:34 > 0:16:37could leave you feeling a bit sick and regretting your decision.
0:16:37 > 0:16:40We invited a local estate agent to take a look at the property
0:16:40 > 0:16:43and tell us more about the prospects for this flat.
0:16:43 > 0:16:47The houses around here are all Victorian period properties.
0:16:47 > 0:16:52On this street, it's about 50-50 of flats to family houses.
0:16:52 > 0:16:55So it's a really good ratio between the two.
0:16:55 > 0:16:59It's a decent-size flat and it's got a lot of potential.
0:16:59 > 0:17:02So a popular area but, to maximise the potential here,
0:17:02 > 0:17:06what level of refurbishment would he recommend?
0:17:06 > 0:17:09I'd expect the property to be done up to a high standard,
0:17:09 > 0:17:12with a new kitchen and wood flooring throughout.
0:17:12 > 0:17:15Once refurbished, how much rental income could the property generate?
0:17:15 > 0:17:19The property would rent for around £1,300 per calendar month.
0:17:19 > 0:17:23If the lease was sorted, how much could it sell for?
0:17:23 > 0:17:26Once the lease has been renewed,
0:17:26 > 0:17:30I would expect that it would be worth today 300,000.
0:17:30 > 0:17:32And, done up in a very good condition, 350,000.
0:17:34 > 0:17:37Property is never easy. It's never straightforward.
0:17:37 > 0:17:39Never as clear-cut as you want.
0:17:39 > 0:17:42But, if you balance up the risk to reward factor here,
0:17:42 > 0:17:46it looks like somebody could do very well indeed on this place.
0:17:46 > 0:17:48Let's just hope they have cash
0:17:48 > 0:17:52and patience aplenty to pay for any unexpected complications.
0:17:52 > 0:17:54Let's see who went for it at the auction.
0:17:54 > 0:17:55Right, West Hampstead.
0:17:55 > 0:17:59One-bedroom flat. This is lot 64.
0:17:59 > 0:18:02Who'd like to start off on this? 150?
0:18:02 > 0:18:05150 on my right. 155?
0:18:05 > 0:18:08155, thank you.
0:18:08 > 0:18:10160? 160.
0:18:10 > 0:18:14165? 170?
0:18:14 > 0:18:18175? 180?
0:18:18 > 0:18:21185? 190?
0:18:21 > 0:18:26195? 200?
0:18:26 > 0:18:28196?
0:18:28 > 0:18:30Have a think. £195,000.
0:18:30 > 0:18:33Anyone else?
0:18:33 > 0:18:35£195,000.
0:18:35 > 0:18:36First time.
0:18:36 > 0:18:39Second time. Third and last time.
0:18:39 > 0:18:40If you're all done...
0:18:40 > 0:18:42HE BANGS THE GAVEL
0:18:42 > 0:18:44Sold, 195. Well bought.
0:18:44 > 0:18:48That winning bid of 195,000 was made by father-and-son team
0:18:48 > 0:18:51John and Andrew.
0:18:51 > 0:18:53Dad John is financing the deal, while Andrew,
0:18:53 > 0:18:56who's director of a mobile technology company,
0:18:56 > 0:18:58will project-manage.
0:18:58 > 0:19:02Andrew's friend, Amy, is the architect on the project.
0:19:02 > 0:19:05I met up with the two of them to find out more.
0:19:07 > 0:19:11Guys, congratulations. First of all, you got this at a great price, didn't you?
0:19:11 > 0:19:15Well, yes, we think we did. It was certainly below what we thought.
0:19:15 > 0:19:19We were going to go up to 210, and we got it for 195.
0:19:19 > 0:19:22So why did you want to buy this? What was the attraction here?
0:19:22 > 0:19:25The attraction is the area. It's a great area.
0:19:25 > 0:19:28And it's a pretty good flat. It's a good size.
0:19:28 > 0:19:30I mean, it's not huge, but every room is a decent size.
0:19:30 > 0:19:33So, Amy, tell me your involvement with this project.
0:19:33 > 0:19:36I've come in as architectural designer here.
0:19:36 > 0:19:40I've been working with Andy for the last year or so on quite a few properties.
0:19:40 > 0:19:43There's quite a lot of things to be done. A lot of them are cosmetic.
0:19:43 > 0:19:46There's not too much structural work that we're going to be doing here.
0:19:46 > 0:19:52We're looking at adding possibly a window or two to maximise the light and rejigging the kitchen
0:19:52 > 0:19:56and bathroom layouts, and drainage, and a few bits and pieces.
0:19:56 > 0:20:00So, Andy, you guys work together. Do you leave a lot of this work up to Amy?
0:20:00 > 0:20:04Yeah, well, she's the expert on these things. She's the architect.
0:20:04 > 0:20:08But I do like to try to make sure you've got the old floorboards
0:20:08 > 0:20:11and exposing those, exposing the fireplaces.
0:20:11 > 0:20:14I think people like that these days. And that's what I like as well.
0:20:14 > 0:20:18I completely agree with you there. It's a shame about this flooring,
0:20:18 > 0:20:21but I think you're going to have to bring it up.
0:20:21 > 0:20:25- It is coming up, yeah. - Exactly, the original floorboards are under here as well.
0:20:25 > 0:20:30You do sometimes have problems with sound, but what we do is often take up the floorboards,
0:20:30 > 0:20:33lay down soundproofing and then relay them again.
0:20:33 > 0:20:36This sounds very promising,
0:20:36 > 0:20:38and Andrew has a healthy £20,000 budget.
0:20:38 > 0:20:43But, as I mentioned earlier, this area of the city expects a pretty high standard of finish.
0:20:43 > 0:20:46So, what else will they spend the 20 grand on?
0:20:46 > 0:20:48What are the plans for the kitchen?
0:20:48 > 0:20:51Well, it's very small at the moment.
0:20:51 > 0:20:52Only half of it is there,
0:20:52 > 0:20:55so we haven't got much to play with.
0:20:55 > 0:20:58That will come out completely and we'll make it slightly larger.
0:20:58 > 0:21:01And the bathroom. Now, at the moment, as it stands,
0:21:01 > 0:21:03you've got just a shower in there.
0:21:03 > 0:21:05Me, girly, like to have my baths.
0:21:05 > 0:21:09First thing I'd do would be trying to squeeze a bath in there.
0:21:09 > 0:21:11There's plenty of room to put a bathtub in there.
0:21:11 > 0:21:14Whether we put a bathtub with a shower over the bath,
0:21:14 > 0:21:17or whether we can jiggle it round to have a shower unit in there as well,
0:21:17 > 0:21:19that's something we'll look at.
0:21:19 > 0:21:22How long do you think it will take you to get all the work done?
0:21:22 > 0:21:23We can get most of it done quite quickly.
0:21:23 > 0:21:29Like I said, there's not really anything structural that's going on, apart from a small window.
0:21:29 > 0:21:32So we're talking a manner of weeks, really.
0:21:32 > 0:21:34So, guys, if this is only going to take a few weeks,
0:21:34 > 0:21:37how long have you got before you're going to be a bit busier?
0:21:37 > 0:21:40Not so much longer. I'm looking at four or five weeks now.
0:21:40 > 0:21:43Hopefully, it doesn't come out any earlier than that,
0:21:43 > 0:21:46because I've got a lot to get done in those weeks.
0:21:46 > 0:21:49But, either way, I'm running a lot of other projects along as well.
0:21:49 > 0:21:52I've got six or seven on site at the moment.
0:21:52 > 0:21:54They all overlap and you can take one or two weeks out
0:21:54 > 0:21:58if you've got trusty builders and people like Andy that you're working with.
0:21:58 > 0:22:00So it shouldn't be too much of a problem.
0:22:00 > 0:22:01Yeah, I can always step in.
0:22:01 > 0:22:04Andrew's more of a deskbound entrepreneur,
0:22:04 > 0:22:06working on his mobile technology business
0:22:06 > 0:22:09and doing property development more as a hobby.
0:22:09 > 0:22:13But it's no surprise that Amy has no intention of keeping still,
0:22:13 > 0:22:15even with a baby on the way,
0:22:15 > 0:22:19because she had a former career that was rather more physical.
0:22:19 > 0:22:20How did you get involved in this?
0:22:20 > 0:22:24Well, obviously, I studied architecture for a long time
0:22:24 > 0:22:26and have been doing that for quite a few years.
0:22:26 > 0:22:29Then I did have a little break for about a year and a half
0:22:29 > 0:22:31to do something completely different
0:22:31 > 0:22:34from the architectural and developing side of things,
0:22:34 > 0:22:36to become a Gladiator.
0:22:36 > 0:22:38- Wow!- So that was quite fun.
0:22:38 > 0:22:40I put a lot of my architectural skills into it as well,
0:22:40 > 0:22:42climbing over ladders and...
0:22:42 > 0:22:44AMY LAUGHS
0:22:44 > 0:22:47Wow, so that must have been quite a challenging year for you?
0:22:47 > 0:22:53Yeah, I mean, it was a dream job and something very different from what I was used to.
0:22:53 > 0:22:56It was quite difficult telling some of my clients that
0:22:56 > 0:23:00I was going away for a month or two, and I couldn't tell them why.
0:23:00 > 0:23:03Then they saw me pop up on TV.
0:23:03 > 0:23:06But most of them liked having an architect that was a Gladiator!
0:23:06 > 0:23:09# Are you tough enough?
0:23:09 > 0:23:11# Hanging tough
0:23:11 > 0:23:13# Hanging tough
0:23:13 > 0:23:14# Hanging tough... #
0:23:14 > 0:23:17Well, from hanging tough to houses, quite a change in pace.
0:23:17 > 0:23:19But there's one major issue with the flat,
0:23:19 > 0:23:24which could mean that you could fall and end up in a property pit.
0:23:24 > 0:23:27This property comes with a very short lease,
0:23:27 > 0:23:31which means that you obviously have to pay cash for this at auction.
0:23:31 > 0:23:33Did that not put you off, the fact that you weren't going to get
0:23:33 > 0:23:37a mortgage straightaway on a property like this?
0:23:37 > 0:23:41No, I think at auction, it's relatively difficult to sort out a mortgage anyway,
0:23:41 > 0:23:44because of the short timescales you've got.
0:23:44 > 0:23:47So, typically, we buy in cash anyway and, if necessary,
0:23:47 > 0:23:49we mortgage afterwards.
0:23:49 > 0:23:53Yeah, the short lease, basically, it puts off other buyers potentially,
0:23:53 > 0:23:56particularly those who would need to get a mortgage.
0:23:56 > 0:23:59And it just means, I guess, that we'll have to spend some money
0:23:59 > 0:24:01extending the lease or buying a share in the freehold.
0:24:01 > 0:24:04It's been lovely meeting you. Good luck with this project.
0:24:04 > 0:24:08- Can't wait to see what it's like. Good luck with the baby as well. - Thank you.
0:24:10 > 0:24:14So, with Amy's eye, Andrew could transform
0:24:14 > 0:24:17this place into something really special.
0:24:17 > 0:24:19And with that lease sorted,
0:24:19 > 0:24:22he could see some quite serious profit.
0:24:22 > 0:24:26Find out how it all goes later on in the programme.
0:24:26 > 0:24:30Coming up, you get something special with this Devon property.
0:24:30 > 0:24:33Huge windows looking out across the sea.
0:24:33 > 0:24:35That is priceless.
0:24:37 > 0:24:42We return to this London flat, where there's been a wake-up call.
0:24:42 > 0:24:45I've had a lot of sleepless nights, but we're back on track with work.
0:24:47 > 0:24:51But, first, it's back to Darlington, where Emma used her school holidays well.
0:24:51 > 0:24:53The first one was stripping wallpaper.
0:24:53 > 0:24:55Then cleaning, the next one. And the last one's been painting.
0:24:59 > 0:25:02We're darting back to Darlington now where, earlier in the programme,
0:25:02 > 0:25:06local couple Phil and Emma paid £55,000
0:25:06 > 0:25:09for this three-bedroom end of terrace.
0:25:09 > 0:25:11It needed a total refurbishment.
0:25:11 > 0:25:13Phil's a plumber, with his own company,
0:25:13 > 0:25:16and Emma's a primary school teacher.
0:25:16 > 0:25:19They plan to renovate it and sell it on.
0:25:19 > 0:25:22I'd met up with them in their own house on the neighbouring street,
0:25:22 > 0:25:28and Emma was certainly of the opinion that they'd got more than they bargained for.
0:25:28 > 0:25:31I hadn't seen it before we went to the auction. I'd seen the outside
0:25:31 > 0:25:34and I'd peered through the window, but you'd been round and done a viewing.
0:25:34 > 0:25:36Yeah, had a quick look.
0:25:36 > 0:25:39So when we bought it and we went round to look at it, it was just a total shock.
0:25:39 > 0:25:44- Was it worse or better than you thought it was going to be? - Worse than I thought!
0:25:44 > 0:25:47All the floorboards are up, ready for me to put all the plumbing in.
0:25:47 > 0:25:50All the wiring's ready to go in. It's an easy job.
0:25:50 > 0:25:55It's five months later and they've invited us back to see the finished product.
0:25:57 > 0:25:59And what a result!
0:25:59 > 0:26:04The house you'd have hurried past now makes you want to stop and stare.
0:26:06 > 0:26:09# Come back, baby You'll find a change in me
0:26:09 > 0:26:11# Everybody... #
0:26:11 > 0:26:16With new windows throughout, the bay-fronted living room is the first room to catch your eye.
0:26:18 > 0:26:21It was already knocked through to the dining room.
0:26:21 > 0:26:27But Phil could see the potential to make even more of the ground floor.
0:26:27 > 0:26:31There was a wall here which we took out. And there was a doorway here.
0:26:31 > 0:26:34Going on through here, there was another door here,
0:26:34 > 0:26:36which leads us into the kitchen.
0:26:39 > 0:26:43All these walls have been timber-framed and insulated.
0:26:43 > 0:26:46Had to be built out just to square off for the kitchen.
0:26:46 > 0:26:47The same with the ceiling.
0:26:47 > 0:26:50The ceiling had to be dropped a foot just to level that out.
0:26:50 > 0:26:54The kitchen itself, we were going to go for a cream one, but, erm,
0:26:54 > 0:26:58I went and come back with this one, which I'm rather pleased with.
0:26:58 > 0:27:01It's created a stylish look.
0:27:01 > 0:27:05The whole house has been rewired and central heating installed.
0:27:08 > 0:27:12Upstairs, the rotten rear bedroom is now a lovely space,
0:27:12 > 0:27:15making the most of the views across the park.
0:27:15 > 0:27:21The mangled middle bedroom now has a floor, carpet and a feature wall.
0:27:21 > 0:27:25And the bathroom that was just a pile of rubbish,
0:27:25 > 0:27:28it's now a beautiful designer-look bathroom.
0:27:32 > 0:27:35But what happened to the master bedroom at the front?
0:27:35 > 0:27:40Well, no disappointment there either, because it's been rejuvenated,
0:27:40 > 0:27:46and the choice of decor hints at a possible change to their original plan to sell the house.
0:27:46 > 0:27:49Originally, in here, the ceilings were wallpapered,
0:27:49 > 0:27:53the walls were wallpapered and then painted on top,
0:27:53 > 0:27:57so it was a bit of a nightmare getting it back down to the brick.
0:27:57 > 0:27:59Then we've had it all plastered.
0:27:59 > 0:28:03And then it was choosing colours - because we're thinking of maybe moving in -
0:28:03 > 0:28:06colours that we might like to have.
0:28:06 > 0:28:10But now the carpet's fitted, I wish we'd gone for cream carpets,
0:28:10 > 0:28:13but it shouldn't take too much to change the purple to a more neutral colour.
0:28:13 > 0:28:16So, if they choose to live in the house,
0:28:16 > 0:28:18it's been decorated more to their taste.
0:28:18 > 0:28:22But with the back-up plan of making the colours more neutral
0:28:22 > 0:28:24if they do decide to sell.
0:28:24 > 0:28:26Smart thinking!
0:28:26 > 0:28:30Phil and Emma have totally transformed the place and, to their credit,
0:28:30 > 0:28:33they've done most of the work themselves in their spare time.
0:28:37 > 0:28:41I did everything, basically, apart from plaster the walls
0:28:41 > 0:28:43and put the carpets in.
0:28:43 > 0:28:46I put all the single windows in, had a window fitted to the bays.
0:28:46 > 0:28:51Me grandad built the front wall and painted the back for us.
0:28:51 > 0:28:55And we've had a lot of help off Emma's mum and dad.
0:28:55 > 0:28:59I'm looking forward to the summer holidays. I've used my past couple of holidays...
0:28:59 > 0:29:01The first one was stripping wallpaper.
0:29:01 > 0:29:02Then cleaning, the next one.
0:29:02 > 0:29:06And then the last one's been painting, so I just can't wait for a bit of a break!
0:29:06 > 0:29:10What is still left to do?
0:29:10 > 0:29:14We've still got to have the front of the house rendered
0:29:14 > 0:29:17and the back of the house, there's still a bit of guttering to do,
0:29:17 > 0:29:18but that'll be done in the next couple of weeks.
0:29:18 > 0:29:24They've created a beautiful house, but how much has it cost?
0:29:24 > 0:29:27The original budget was 12,000.
0:29:27 > 0:29:30We're at about 14,000 now.
0:29:30 > 0:29:32Probably take us to 15 by the time we're finished.
0:29:34 > 0:29:39Emma and Phil are in two minds about whether to move into the house or sell it.
0:29:39 > 0:29:42Their current home is on the market and they plan to put
0:29:42 > 0:29:46this one on, too, to test the water.
0:29:46 > 0:29:49Perhaps the opinion of two local property experts
0:29:49 > 0:29:53we invited along will help steer them one way or another?
0:29:55 > 0:29:59I'm very, very impressed. Love the kitchen. Love the bathroom.
0:29:59 > 0:30:00Right up to date. Super!
0:30:00 > 0:30:03The final finish, I think, has been particularly good.
0:30:03 > 0:30:06There's a lot of attention to detail and the kitchen and bathroom,
0:30:06 > 0:30:09I think, are a particularly nice feature.
0:30:09 > 0:30:11I think it was a good decision to take the wall down.
0:30:11 > 0:30:13It's let so much more light through.
0:30:13 > 0:30:16You can walk in, put your furniture down and that's it.
0:30:16 > 0:30:18It's a cracking house.
0:30:18 > 0:30:22They bought the house for 55,000 and Phil reckons
0:30:22 > 0:30:26the budget will hit £15,000 once everything is done.
0:30:26 > 0:30:29So will it be worth more than 70 grand?
0:30:29 > 0:30:32I would recommend an asking price in the region of £110,000.
0:30:32 > 0:30:36In my opinion, I think the property would be likely to sell for around £110,000.
0:30:36 > 0:30:40That would generate a 40 grand gross profit for the couple
0:30:40 > 0:30:43after five months, before the usual selling expenses.
0:30:43 > 0:30:46So the hard work's been worth it.
0:30:46 > 0:30:48It's been a really successful project
0:30:48 > 0:30:51and we're pleased with the valuations.
0:30:51 > 0:30:53We'll definitely do it again.
0:30:53 > 0:30:55We've already had a look at another house to start on,
0:30:55 > 0:30:57as soon as we finish this one.
0:30:57 > 0:30:59So, with two houses up for sale at the same time,
0:30:59 > 0:31:03do they now have a preferred outcome?
0:31:03 > 0:31:04We'll put both of them up for sale.
0:31:04 > 0:31:06I don't mind which one goes first, really.
0:31:06 > 0:31:08- It would be nice to move into this one, wouldn't it?- Yeah.
0:31:08 > 0:31:12And the other one to sell first, but it just depends.
0:31:12 > 0:31:13Whichever one goes first.
0:31:27 > 0:31:31I'm in Seaton, on the Dorset and East Devon coastline,
0:31:31 > 0:31:34known as the Jurassic Coast.
0:31:34 > 0:31:39The rocks here record over 185 million years of history.
0:31:39 > 0:31:42As well as being scientifically interesting,
0:31:42 > 0:31:45it's a very popular spot with holidaymakers.
0:31:45 > 0:31:48And, you know what? You can see why.
0:31:51 > 0:31:54Seaton is a traditional seaside town.
0:31:54 > 0:31:57Busy in summer and quieter in the winter months.
0:31:57 > 0:32:00But the year-round attraction is this great beach
0:32:00 > 0:32:03and these magnificent cliffs.
0:32:03 > 0:32:08Right opposite those beautiful views is the property I'm here to see.
0:32:08 > 0:32:09Central location.
0:32:09 > 0:32:12It used to be a hotel, a B&B, a social club.
0:32:12 > 0:32:15It's certainly been well used.
0:32:15 > 0:32:18The guide price was 150-180,000 quid.
0:32:18 > 0:32:20Let's take a look inside.
0:32:23 > 0:32:25The building looks impressive. But it turns out
0:32:25 > 0:32:29it was only the former social club on the ground floor
0:32:29 > 0:32:33and the first-floor flat above it that went to auction.
0:32:33 > 0:32:37Even so, with a prime location right on the seafront,
0:32:37 > 0:32:38that was surely a lot of property
0:32:38 > 0:32:40for a guide price that was only 150,000.
0:32:44 > 0:32:47Wow! That is kind of unusual.
0:32:47 > 0:32:50It's laid out pretty much as a social club.
0:32:50 > 0:32:53Well, as a social club almost that was operating last night.
0:32:53 > 0:32:56You've got a pool table. You've got the chairs and tables.
0:32:56 > 0:33:00There's a stage area here with a light. We've got dartboards.
0:33:00 > 0:33:01Look at this!
0:33:01 > 0:33:03Bar area.
0:33:03 > 0:33:05Actually, you know what? That's all still operating.
0:33:05 > 0:33:08This is very unusual.
0:33:08 > 0:33:12It is literally like people have just walked out and left it.
0:33:12 > 0:33:15I need to find out a bit more about the history of this place.
0:33:15 > 0:33:18But I'll take a look upstairs first.
0:33:18 > 0:33:21# What's going on?
0:33:21 > 0:33:22# What's going on?
0:33:22 > 0:33:25# What's going on? #
0:33:25 > 0:33:27It is a bit of a mystery.
0:33:27 > 0:33:31Clearly, it wasn't that long ago that it was still running as a social club.
0:33:31 > 0:33:34The rear bar kitchen is quite serviceable.
0:33:34 > 0:33:36And the cellars are clean and tidy.
0:33:36 > 0:33:40It all looks like a well cared for, if slightly dated, club.
0:33:40 > 0:33:43But what's the apartment upstairs like?
0:33:43 > 0:33:47It's a long old stairway. But what's up here?
0:33:47 > 0:33:51Well, at first glance, a lot!
0:33:51 > 0:33:54Lots and lots of rooms, all pretty much full of clutter at the moment.
0:33:54 > 0:33:57But we can cope with that, because the good news is
0:33:57 > 0:34:00that they've all got some kind of toilet facilities.
0:34:00 > 0:34:02Loo, basin, bathroom. Fantastic.
0:34:02 > 0:34:06What they don't necessarily have is roofs on those facilities!
0:34:06 > 0:34:12But straightaway, I'm thinking the options for renting this out are an HMO.
0:34:12 > 0:34:13Individual rooms. Perfect.
0:34:13 > 0:34:15Another room there.
0:34:15 > 0:34:19And then through to... Oh, my goodness me!
0:34:19 > 0:34:21What a fantastic room this is!
0:34:21 > 0:34:23It's huge. It's got those facilities,
0:34:23 > 0:34:26but it's got huge windows looking out across the sea.
0:34:26 > 0:34:29That is priceless.
0:34:29 > 0:34:32Ooh, I want to stay here!
0:34:35 > 0:34:39With its own balcony, what a living room this could be!
0:34:39 > 0:34:43And, with three bedrooms up here, all with wash and toilet facilities,
0:34:43 > 0:34:48plus a separate bathroom and shower room, there are plenty of options.
0:34:48 > 0:34:51Turn one of the rooms into the kitchen and you could make this
0:34:51 > 0:34:56into a self-contained apartment, or you could let it out room by room.
0:34:56 > 0:35:02Or it could just be living accommodation for anyone running the business downstairs.
0:35:02 > 0:35:04What does an estate agent think
0:35:04 > 0:35:06would best serve the local community?
0:35:08 > 0:35:13It would be best used as a wine bar or tapas bar,
0:35:13 > 0:35:17which would be obviously popular in the summer with tourists
0:35:17 > 0:35:21and holidaymakers, and with local residents throughout the year.
0:35:21 > 0:35:24I think the rooms on the first floor would be better suited to
0:35:24 > 0:35:27a three-bedroom apartment with fantastic sea views.
0:35:27 > 0:35:32Certainly upgrading what's here already may be the most effective use of the space.
0:35:32 > 0:35:35But would it bring in a reasonable return
0:35:35 > 0:35:37on this lot that was guided at 150,000?
0:35:40 > 0:35:43With the flat renovated, and subject to the turnover of the social club,
0:35:43 > 0:35:47the total value is likely to be somewhere in the region of £200,000.
0:35:47 > 0:35:51So, perhaps some uplift on resale.
0:35:51 > 0:35:54But maybe rental would be a better route
0:35:54 > 0:35:57for both downstairs and the first floor.
0:35:57 > 0:35:59If the apartment was renovated,
0:35:59 > 0:36:05the rental value would be in the region of £650 per calendar month.
0:36:05 > 0:36:08If, downstairs, the social club stayed as it is,
0:36:08 > 0:36:13the rental value would be somewhere in the region of £10,000 per year.
0:36:17 > 0:36:20Well, a really interesting opportunity for somebody here.
0:36:20 > 0:36:22You've got the rooms upstairs.
0:36:22 > 0:36:26You've got this area down here that you could pretty much operate as it is.
0:36:26 > 0:36:30The one thing that you can't deny is the location of the property itself.
0:36:30 > 0:36:33It doesn't get much better than this.
0:36:33 > 0:36:35Let's see who potted it at the auction.
0:36:40 > 0:36:44And lot 94 is a two-storey mixed commercial
0:36:44 > 0:36:46and guesthouse-type premises.
0:36:46 > 0:36:48Who's going to start me off at 140?
0:36:48 > 0:36:50I have a gentleman there. 140, thank you, sir.
0:36:50 > 0:36:55Looking for 145. 145 I have. Against you now, sir, at 145. 150, sir?
0:36:55 > 0:36:58Is that a nod? 150, I thank you, sir.
0:36:58 > 0:37:00150, looking for 152.
0:37:00 > 0:37:03Definite shake of the head further back.
0:37:03 > 0:37:07Ladies and gentlemen, going to go once at 150.
0:37:07 > 0:37:10Great deal of property for 150,000.
0:37:10 > 0:37:12Going twice at 150.
0:37:12 > 0:37:17For the third and final time at 150. Definite shake of the head.
0:37:17 > 0:37:20Sir, it's yours at 150. Thank you.
0:37:22 > 0:37:26For £150,000, the new owners of the old social club
0:37:26 > 0:37:29and apartment are Pat and Julie, who saw this
0:37:29 > 0:37:35as a once-in-a-lifetime opportunity to fulfil a cherished dream.
0:37:37 > 0:37:39Pat, Julie, lovely to meet you both.
0:37:39 > 0:37:42- And you, Martin.- Congratulations.
0:37:42 > 0:37:45Tell me why you wanted to buy it.
0:37:45 > 0:37:48Basically, it was a wonderful opportunity
0:37:48 > 0:37:51to buy a business and somewhere to live.
0:37:51 > 0:37:53Right, you're talking about buying a business.
0:37:53 > 0:37:55Is the idea, then, to carry on running the business?
0:37:55 > 0:37:58Yes, we want to still run it as a social club.
0:37:58 > 0:38:01A privately owned social club.
0:38:01 > 0:38:03Wow!
0:38:03 > 0:38:05Plus, we'll be living upstairs.
0:38:05 > 0:38:08So, it's everything thrown into one, really.
0:38:08 > 0:38:11Gosh! Julie, tell me a bit more about you two
0:38:11 > 0:38:13and your backgrounds and things.
0:38:13 > 0:38:16Well, we're originally from Manchester,
0:38:16 > 0:38:20and it was always a big thing that we always wanted to live by the sea.
0:38:20 > 0:38:24- And the dream has come true, hasn't it?- Absolutely.
0:38:24 > 0:38:25# Dreams can come true
0:38:25 > 0:38:28# Look at me, babe, I'm with you... #
0:38:28 > 0:38:32Well, this place is certainly right by the sea
0:38:32 > 0:38:35and Julie, Pat and their two teenage sons
0:38:35 > 0:38:37can't wait to move in and get started.
0:38:37 > 0:38:39It's quite a change of direction
0:38:39 > 0:38:44but, after taking voluntary redundancy from his old job as a technical support engineer,
0:38:44 > 0:38:47Pat's prepared to give it his all,
0:38:47 > 0:38:52to realise his long-held ambition to run his own social club.
0:38:52 > 0:38:55In terms of the business, when do you hope to get that up and running?
0:38:55 > 0:39:00We're literally waiting for the licence, which takes ten working days,
0:39:00 > 0:39:04so as soon as we get the OK with that, we'll be opening for business.
0:39:04 > 0:39:06So you could literally have people in here in ten days?
0:39:06 > 0:39:09- Yeah.- Well, we're actually going to have people in tonight.
0:39:09 > 0:39:10Tonight?!
0:39:10 > 0:39:14A bingo crowd. We can't sell any alcohol, but we can do refreshments,
0:39:14 > 0:39:17- teas and coffees and soft drinks, can't we?- Yeah.
0:39:17 > 0:39:19We can't let them down, they're regulars,
0:39:19 > 0:39:22- and they love their weekly bingo, so we're doing it for them, aren't we?- Yeah.
0:39:22 > 0:39:25They must be absolutely thrilled to bits that,
0:39:25 > 0:39:28rather than ripping it out and turning it into a posh wine bar,
0:39:28 > 0:39:30you are actually keeping it as a place for them.
0:39:30 > 0:39:33Yes. All the people that have spoken to us are very much behind us
0:39:33 > 0:39:36and what we're trying to do.
0:39:36 > 0:39:39So, hopefully, the tills will start ticking over.
0:39:39 > 0:39:43So when did the business here actually stop operating?
0:39:43 > 0:39:45- Ten days ago.- Ten days ago?- Yeah.
0:39:45 > 0:39:50So that explains why everything is in such good condition.
0:39:50 > 0:39:55But Pat and Julie are keen not just to get the social club back
0:39:55 > 0:40:00to where it was, but to build on that core community support and grow the business.
0:40:00 > 0:40:04First and foremost, they need to turn the first floor into the family home
0:40:04 > 0:40:06and do some refurbishment work downstairs.
0:40:06 > 0:40:12So, talk me through exactly what you're going to do downstairs and upstairs to sort it out.
0:40:12 > 0:40:19Downstairs, just a coat of paint, the windows and a few radiators.
0:40:19 > 0:40:22We've got to make it a viable business before we start
0:40:22 > 0:40:23chucking money down here.
0:40:23 > 0:40:25The majority of the work upstairs,
0:40:25 > 0:40:30we're still under negotiation about the bedrooms.
0:40:30 > 0:40:34We're fighting with the boys on who's having what room!
0:40:34 > 0:40:39Then what we're looking at is putting a kitchenette in the front room,
0:40:39 > 0:40:41make that the lounge.
0:40:41 > 0:40:45- That front room is spectacular, isn't it?- It certainly is, yeah.
0:40:45 > 0:40:49I have to say, when I go up there and look and think of all the work
0:40:49 > 0:40:51we've got to do, I think, "Oh, my days, what have we done?"
0:40:51 > 0:40:54Then you just go and look out of that front room and you think,
0:40:54 > 0:40:56"Yeah, that's why we did it."
0:41:01 > 0:41:06As they've already spent £150,000 at auction on buying the apartment and social club,
0:41:06 > 0:41:11in order to make sure they hang onto those views, they need to keep their spending down
0:41:11 > 0:41:14and get going and sorted as soon as possible.
0:41:14 > 0:41:16So what kind of budget have you got for the work?
0:41:16 > 0:41:20Realistically, including the operating costs, about 25,000.
0:41:20 > 0:41:27I'm looking at having roundabout £10,000 set aside for operating costs.
0:41:27 > 0:41:35So, out of the 25,000, we've got about 15,000 to spend on jigging it around as to what we want.
0:41:35 > 0:41:37And what about timescale for doing the work?
0:41:37 > 0:41:41Downstairs will be a long-term project.
0:41:41 > 0:41:47It may be three, four years before we're making a decent profit
0:41:47 > 0:41:51and we say, yes, it's now worthwhile doing this.
0:41:51 > 0:41:58Upstairs, it may be we spend three, six months and just get it somewhere near right
0:41:58 > 0:42:02and then the extra bits we'll do, dependent on budget.
0:42:02 > 0:42:07If it doesn't work, we live here, right on the seafront, can't be bad!
0:42:07 > 0:42:10# Dreams can come true
0:42:10 > 0:42:12# Look at me, babe, I'm with you
0:42:12 > 0:42:15# You know you've got to have hope
0:42:15 > 0:42:17# You know you've got to be strong... #
0:42:17 > 0:42:22Well, an exciting adventure for Pat and Julie, that's for sure.
0:42:22 > 0:42:26But, you know what? Running a business like this is not going to be easy.
0:42:26 > 0:42:29They certainly like the place, and who wouldn't?
0:42:29 > 0:42:31In terms of lifestyle, it's brilliant.
0:42:31 > 0:42:34Will they, in fact, hit the bull's eye?
0:42:34 > 0:42:37You can find out later in the show.
0:42:40 > 0:42:43It's been a while now since we last saw our brave buyers.
0:42:43 > 0:42:46Yes, have they been firing on all cylinders,
0:42:46 > 0:42:48or have the projects blown a gasket?
0:42:48 > 0:42:50Let's go back and find out.
0:42:50 > 0:42:54Earlier in the programme, we were in West Hampstead,
0:42:54 > 0:43:00a desirable London suburb, where Andrew had bought this one-bedroom flat for 195,000.
0:43:00 > 0:43:04It was a joint investment with his father, John.
0:43:04 > 0:43:08Andrew's the director of a mobile technology business
0:43:08 > 0:43:10and was going to project-manage the refurbishment while
0:43:10 > 0:43:13his architect friend, and former gladiator, Amy, was going to design it.
0:43:13 > 0:43:16INAUDIBLE SPEECH
0:43:16 > 0:43:19So why did you want to buy this? What was the attraction here?
0:43:19 > 0:43:22The attraction is the area. It's a great area.
0:43:22 > 0:43:25And it's a pretty good flat. It's a good size.
0:43:25 > 0:43:28I mean, it's not huge, but every room is a decent size.
0:43:28 > 0:43:31There's quite a lot of things to be done. A lot of them are cosmetic.
0:43:31 > 0:43:33There's not too much structural work that we're going to be doing here.
0:43:33 > 0:43:37We're looking at adding possibly a window or two and rejigging
0:43:37 > 0:43:40the kitchen and bathroom layouts, and drainage, and a few bits and pieces.
0:43:40 > 0:43:43Amy had about four to five weeks before she was due to give birth.
0:43:47 > 0:43:50Well, it's now three months later, and we're back.
0:43:52 > 0:43:56And Andrew and Amy have delivered a delightful addition to
0:43:56 > 0:43:58the West Hampstead property market.
0:44:03 > 0:44:06The Victorian chimney's been exposed in the living room.
0:44:10 > 0:44:13Plus, the original floorboards.
0:44:15 > 0:44:19They just need final sanding and staining.
0:44:19 > 0:44:21The layout has remained the same.
0:44:21 > 0:44:25But a quality kitchen's been installed.
0:44:25 > 0:44:29So we have ripped out the old kitchen and put in a brand-new one.
0:44:29 > 0:44:32I think the key was to make it slightly bigger than before,
0:44:32 > 0:44:38so that we could fit in every modern appliance that I think people want these days.
0:44:38 > 0:44:43So we have a full-size dishwasher,
0:44:43 > 0:44:46quite a nice kind of range-style hob,
0:44:46 > 0:44:48a built-in microwave.
0:44:48 > 0:44:52And then, the washing room, we moved from the bathroom into here.
0:44:52 > 0:44:56It will hopefully be appealing to someone who likes the kind of old Victorian house,
0:44:56 > 0:44:59but wants all the modern features of a kitchen.
0:44:59 > 0:45:05So, all new cupboards, but then exposing the features of the Victorian fireplace.
0:45:05 > 0:45:12So this unsophisticated baby-size flat has matured into a classy grown-up property.
0:45:12 > 0:45:15And it's all down to Amy DELIVERING the goods!
0:45:15 > 0:45:18My life's changed a lot. I'm minus, well, a big bump.
0:45:18 > 0:45:22I've got a little one now. But we have a little baby girl, Coco.
0:45:22 > 0:45:26She's ten weeks old now and growing like crazy.
0:45:26 > 0:45:29Lots of sleepless nights, but we're back on track with work.
0:45:33 > 0:45:36The original floorboards are on show in the bedroom as well.
0:45:36 > 0:45:38But there's no sign of that extra window.
0:45:41 > 0:45:46And the tiny bathroom has been beautifully refitted.
0:45:51 > 0:45:54We've ripped it all out and we've started from scratch.
0:45:54 > 0:45:57We've managed to get a full-size bathtub in here.
0:45:57 > 0:46:00We've still kept the shower element, so it's dual-purpose.
0:46:00 > 0:46:04That's very important, and a good selling point as well.
0:46:04 > 0:46:06We've moved the basin over from here,
0:46:06 > 0:46:10so we've created the maximum amount of floor area possible.
0:46:10 > 0:46:13And, in this space here, where the boiler's kept,
0:46:13 > 0:46:15we're not going to be keeping MDF doors on here.
0:46:15 > 0:46:18They're just purely done for the templates.
0:46:18 > 0:46:20Then we'll take these to a glass manufacturer.
0:46:20 > 0:46:22So there'll be a white, glass, painted door.
0:46:22 > 0:46:27That way, we can keep the polished look of the tiles going through,
0:46:27 > 0:46:29over the storage areas as well.
0:46:29 > 0:46:32I think we've really achieved a nice look and a nice finish.
0:46:32 > 0:46:34You've got good space. You've got a good bit of storage.
0:46:34 > 0:46:38And you've got a lot of natural light, as well, which is very good.
0:46:38 > 0:46:40So why did they have second thoughts about
0:46:40 > 0:46:42adding more windows in the bedroom?
0:46:42 > 0:46:44While we were building it, it kind of occurred to us that
0:46:44 > 0:46:46there was a flat roof just outside this window here.
0:46:46 > 0:46:51So we are currently also talking to the freeholders about extending here
0:46:51 > 0:46:55by putting in doors here and then putting in a roof terrace.
0:46:55 > 0:46:57That will create a huge amount of light into this room.
0:46:57 > 0:46:59And then it will create some outside space which,
0:46:59 > 0:47:02for a flat in London,
0:47:02 > 0:47:04is very desirable.
0:47:04 > 0:47:09Andrew intends to put the flat on the market once the planning's been granted and then carry out the work.
0:47:09 > 0:47:13He's still in discussions about extending the lease, or buying part of the freehold.
0:47:13 > 0:47:16How much has this refurbishment cost?
0:47:16 > 0:47:19We haven't spent a huge amount, probably around £15,000.
0:47:19 > 0:47:24But that is without the roof terrace and without extending the lease.
0:47:24 > 0:47:29So if we extend the lease, 20,000, that will come to 35,000.
0:47:29 > 0:47:32The roof terrace will probably be another 10,000.
0:47:32 > 0:47:34So it's a significant amount of money to spend.
0:47:34 > 0:47:36About 45 grand,
0:47:36 > 0:47:40on top of the 195,000 he and his father paid at auction.
0:47:40 > 0:47:44So, are they likely to see a good return?
0:47:44 > 0:47:48Time to get some advice from two local estate agents.
0:47:56 > 0:47:59First impressions of the flat are, it's quite a nice conversion.
0:47:59 > 0:48:02A little bit on the small side. But that's normal for the area.
0:48:02 > 0:48:03The kitchen's a big improvement.
0:48:03 > 0:48:07They've exposed some of the brick and they've got a nice gas hob.
0:48:07 > 0:48:09And they've done it up to a very good standard.
0:48:09 > 0:48:12I'm not so sure about the idea of a roof terrace,
0:48:12 > 0:48:14especially as it's accessed from the bedroom.
0:48:14 > 0:48:16If it was accessed from the living room, perfect.
0:48:16 > 0:48:19But I don't think it will create a great deal of extra value.
0:48:19 > 0:48:22I think this property would appeal to a single professional or perhaps a couple.
0:48:22 > 0:48:25And, on the rental market, per calendar month,
0:48:25 > 0:48:28I'd expect the property to achieve £1,450.
0:48:28 > 0:48:30I believe, if this came on the market,
0:48:30 > 0:48:34it would achieve somewhere in the region of £1,300 per calendar month.
0:48:34 > 0:48:39Could that sort of income tempt Andrew to reconsider and let out the flat, after all?
0:48:39 > 0:48:42It's something that I would consider,
0:48:42 > 0:48:46but I've been doing this as a kind of joint venture with my dad,
0:48:46 > 0:48:48and it's not something that he wants to consider.
0:48:48 > 0:48:50So sale, it is.
0:48:50 > 0:48:56But will the flat be worth more than the 240 grand they could end up spending on it,
0:48:56 > 0:48:59if they renew the lease and get permission for the roof terrace?
0:48:59 > 0:49:03I would put this on the market for something in the region of £300,000.
0:49:03 > 0:49:06The lease is very important for the sale.
0:49:06 > 0:49:08It'll add on a good amount of money.
0:49:08 > 0:49:12I'd expect it to achieve between 325-350,000.
0:49:12 > 0:49:17That valuation range from 300-350,000 would generate a gross profit,
0:49:17 > 0:49:23before the usual selling expenses of between 60 and 110,000.
0:49:23 > 0:49:25Quite a difference.
0:49:25 > 0:49:29Yes, that is quite a big difference.
0:49:29 > 0:49:33I mean, 300 to 325 was the kind of area I was thinking.
0:49:33 > 0:49:36Maybe, I think, 350 is pushing it.
0:49:36 > 0:49:40But, with the planning permission, if we get it, for the roof terrace,
0:49:40 > 0:49:44then I think 350 suddenly then becomes, hopefully, a viable option.
0:49:44 > 0:49:47Andrew and Amy seem to be a dream team.
0:49:47 > 0:49:48They certainly delivered the goods here.
0:49:48 > 0:49:50So, what's next?
0:49:50 > 0:49:52We've already got another project lined up.
0:49:52 > 0:49:56Amy has already done the plans for that and submitted them to the council.
0:49:56 > 0:50:01In fact, I'm kind of handing over some of the project management to Amy.
0:50:01 > 0:50:06And we're looking to buy another one, once this is done and on the market.
0:50:15 > 0:50:18Back now to Seaton, in Devon.
0:50:18 > 0:50:23Earlier in the programme, Pat and his wife Julie had paid £150,000
0:50:23 > 0:50:25for this first-floor former guesthouse,
0:50:25 > 0:50:27plus a ground-floor club,
0:50:27 > 0:50:30which had only closed fairly recently.
0:50:30 > 0:50:33This was more than just an investment for the couple.
0:50:33 > 0:50:37It was the realisation of a long-held ambition.
0:50:37 > 0:50:40We want to still run it as a social club.
0:50:40 > 0:50:41A privately owned social club.
0:50:41 > 0:50:44Wow!
0:50:44 > 0:50:45Plus, we'll be living upstairs,
0:50:45 > 0:50:48so it's everything thrown into one, really.
0:50:48 > 0:50:50We're originally from Manchester,
0:50:50 > 0:50:55and it was always a big thing that we always wanted to live by the sea.
0:50:55 > 0:50:58And the dream has come true, hasn't it?
0:50:58 > 0:51:00# Dreams can come true
0:51:00 > 0:51:02# For me and for you
0:51:02 > 0:51:05# Doo-doo-doo doo-doo Doo-doo doo-doo
0:51:05 > 0:51:07# Na na-na... #
0:51:07 > 0:51:11They'd moved to Seaton five years ago.
0:51:11 > 0:51:15Pat took voluntary redundancy from his technical support engineer job a year ago.
0:51:15 > 0:51:18So their new venture was about to begin.
0:51:18 > 0:51:20Ten months have now passed
0:51:20 > 0:51:25and we've come back once again to take the sea air in Seaton.
0:51:31 > 0:51:35Julie and Pat's pub and club have been given a coat of paint.
0:51:38 > 0:51:42The room is now set up, ready to serve food.
0:51:42 > 0:51:45But they've sensibly been cautious not to wade in too quickly
0:51:45 > 0:51:49with this business by the sea.
0:51:49 > 0:51:52We've had central heating installed.
0:51:52 > 0:51:55We've got a lot of ongoing work at the moment.
0:51:55 > 0:51:57We've cleaned the place up.
0:51:57 > 0:51:59New furniture.
0:51:59 > 0:52:02We're in the process of sorting the kitchen out.
0:52:02 > 0:52:04That's being ripped out completely.
0:52:04 > 0:52:06We've got a lot more that we still want to do.
0:52:06 > 0:52:10But, obviously, we've got to be sure that the business is viable
0:52:10 > 0:52:15before we spend too much money on a complete refurb job.
0:52:15 > 0:52:18So they're dipping their toes into the water gradually,
0:52:18 > 0:52:20which makes sense.
0:52:20 > 0:52:22Upstairs, the conversion of the former guesthouse
0:52:22 > 0:52:24into their family home has been slow.
0:52:24 > 0:52:28That massive front room that overlooks the sea
0:52:28 > 0:52:30is now their living room.
0:52:30 > 0:52:35But there's just not enough space for everything
0:52:35 > 0:52:37they've brought from their four-bedroomed house.
0:52:37 > 0:52:41But work on the bedrooms and the en suite is going well.
0:52:45 > 0:52:50Their two teenage sons have separate rooms, as Julie explains.
0:52:50 > 0:52:53This is our youngest son's room.
0:52:53 > 0:52:55I would say, of them all,
0:52:55 > 0:52:58this is probably the major work that's been done.
0:52:58 > 0:53:04It was an L-shaped room with a very long, thin bathroom down there.
0:53:04 > 0:53:07We ripped the whole bathroom suite out,
0:53:07 > 0:53:13and we pinched some space from the cloakroom area in the lounge.
0:53:13 > 0:53:16So it was a case of knocking a big wall down
0:53:16 > 0:53:19and then putting this in to make it a lovely oblong room with,
0:53:19 > 0:53:22thank goodness, a nice modern bathroom.
0:53:22 > 0:53:25Obviously, as you can see, I've still not finished yet.
0:53:25 > 0:53:28I just haven't got enough hours in the day to complete it.
0:53:28 > 0:53:31But we will get there. We will, I hope!
0:53:31 > 0:53:34The rest of the cloakroom
0:53:34 > 0:53:37and the lounge is now being converted into a small office.
0:53:37 > 0:53:39It is a big refurbishment project.
0:53:39 > 0:53:43But, unlike other ambitious relocations we see on the programme,
0:53:43 > 0:53:48Pat and Julie are having to concentrate on the social club first.
0:53:48 > 0:53:51Is the business rewarding all their hard work?
0:53:51 > 0:53:53It is going really well.
0:53:53 > 0:53:54Even during the winter,
0:53:54 > 0:53:57we well exceeded what our expected turnover was.
0:53:57 > 0:53:59So, we're really pleased with that.
0:53:59 > 0:54:04They'd set a budget of £15,000 for their seafront property.
0:54:04 > 0:54:07So how much have they had to splash out so far?
0:54:09 > 0:54:12At the moment, we've spent in the region of £6,000.
0:54:12 > 0:54:15Pretty much on budget for what we wanted to do.
0:54:15 > 0:54:18Obviously, we've not met the schedule,
0:54:18 > 0:54:21but we didn't fully understand
0:54:21 > 0:54:24how much work we were going to do to get the business up and running.
0:54:24 > 0:54:28We're open 12 hours a day, every day.
0:54:28 > 0:54:30So we're not able to put the time
0:54:30 > 0:54:33into the work upstairs that we would like to.
0:54:33 > 0:54:36With this seven-day-a-week commitment,
0:54:36 > 0:54:38how do they divide their time?
0:54:38 > 0:54:41I generally do earlier. I'm not good at late nights.
0:54:41 > 0:54:44So I do the earlier shift and Pat does the late shift.
0:54:44 > 0:54:46Our eldest son, he's started helping now.
0:54:46 > 0:54:49And the youngest son does help as well.
0:54:49 > 0:54:50What about the refurbishment?
0:54:50 > 0:54:52Who's been doing that?
0:54:52 > 0:54:55We've done bits ourselves.
0:54:55 > 0:54:58We've had a couple of plumbers in.
0:54:58 > 0:55:00We've got a builder in the moment.
0:55:00 > 0:55:02I've done the decorating.
0:55:02 > 0:55:05You've done the decorating.
0:55:05 > 0:55:10Time to see what two local estate agents will think
0:55:10 > 0:55:12of Pat and Julie's new venture.
0:55:12 > 0:55:17The social club and the first-floor flat overlooking the sea.
0:55:17 > 0:55:22They've made a lot of improvements towards the flat, with en suites.
0:55:22 > 0:55:25I know they've got other plans, in terms of windows,
0:55:25 > 0:55:26but it's a great improvement.
0:55:26 > 0:55:28Delightful little property.
0:55:28 > 0:55:30It's got an excellent sea view from both the front windows,
0:55:30 > 0:55:32downstairs and upstairs.
0:55:32 > 0:55:35They're working hard to create a business here.
0:55:35 > 0:55:38From what I hear locally, it's going very well.
0:55:38 > 0:55:41Pat and Julie paid £150,000 for the flat and social club and,
0:55:41 > 0:55:45so far, their outlay is just 6,000.
0:55:45 > 0:55:48What could their investment be worth?
0:55:48 > 0:55:51If the business was sold as a whole,
0:55:51 > 0:55:54with the flat finished and the business running,
0:55:54 > 0:55:58it would be somewhere in the region of £160 to 170,000.
0:55:58 > 0:56:02The whole building, including the premises downstairs,
0:56:02 > 0:56:04could achieve around £150-170,000.
0:56:04 > 0:56:09Judging by that valuation range of 150-170,000,
0:56:09 > 0:56:11there's not going to be any significant profit here.
0:56:11 > 0:56:15But, with any commercial property, the value can change dramatically,
0:56:15 > 0:56:18depending on how successful the business is.
0:56:20 > 0:56:22I'm quite surprised that that's so low.
0:56:22 > 0:56:26As I say, the business has picked up really well.
0:56:26 > 0:56:30But to know that we're exceeding what we paid for the place
0:56:30 > 0:56:32is quite pleasing in this current market.
0:56:32 > 0:56:34We've got the family business
0:56:34 > 0:56:37and we've got what will potentially be
0:56:37 > 0:56:40a lovely home, with stunning views of the sea.
0:56:40 > 0:56:43So very pleased, overall.
0:56:43 > 0:56:45So, happily for Pat and Julie,
0:56:45 > 0:56:50it certainly seems like their seaside dreams HAVE come true.
0:56:52 > 0:56:54Well, join us next time,
0:56:54 > 0:56:58as more bold bidders brave the auctions on Homes Under The Hammer.
0:56:58 > 0:57:00From Martin and I, goodbye.
0:57:00 > 0:57:01- Goodbye.- Goodbye.
0:57:06 > 0:57:09Subtitles by Red Bee Media Ltd
0:57:09 > 0:57:12E-mail subtitling@bbc.co.uk