0:00:02 > 0:00:06Whether you're looking for a first home or a lucrative development
0:00:06 > 0:00:10the auction may have something for you, right, my little flower?
0:00:10 > 0:00:14Thank you! In these challenging times, there are bargains to be had,
0:00:14 > 0:00:16as long as you avoid the pitfalls.
0:00:16 > 0:00:19Join us, as we show you the ropes.
0:00:45 > 0:00:48A wave of a catalogue, a nod of the head or a sly wink,
0:00:48 > 0:00:52it doesn't matter how you bid if you get the auctioneer's attention.
0:00:52 > 0:00:59- Today, we'll meet some people who did just that. Which properties caught their eye?- Let's find out.
0:01:00 > 0:01:04A mid-terrace in the suburbs of Sunderland leaves me lost for words.
0:01:04 > 0:01:07- LAUGHS - Wow!
0:01:10 > 0:01:14In Streatham, London, I'm at a flat with expensive tastes.
0:01:14 > 0:01:19The service charge is a staggering £3,000 a year!
0:01:20 > 0:01:25In Somerset, there's a very pricey cottage with very noisy neighbours.
0:01:25 > 0:01:30195,000 for that? You've got to be kidding!
0:01:31 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:40We'll find out who bought them and what they paid when they went under the hammer.
0:01:43 > 0:01:47'Sunderland in Tyne and Wear is steeped in a rich heritage
0:01:47 > 0:01:49'of coal and ship building.
0:01:49 > 0:01:52'Recently, a lot of new development and the university
0:01:52 > 0:01:55'have resulted in the place going student-mad!'
0:01:55 > 0:02:00The property I'm here to see is five minutes' walk from the university
0:02:00 > 0:02:02in an area known as Eden Vale.
0:02:02 > 0:02:06Also called, not surprisingly, Studentville.
0:02:06 > 0:02:09This is it. It's a four-bedroomed house.
0:02:09 > 0:02:11Had a guide price of £80,000 plus.
0:02:11 > 0:02:14I'm going to give it a thorough examination.
0:02:14 > 0:02:19Will it come out as an A-grade or bottom of the class? Let's find out.
0:02:19 > 0:02:25'Within walking distance of the university, Eden Vale has a variety of properties,
0:02:25 > 0:02:27'from small terraces to new-builds,
0:02:27 > 0:02:31'to rather large houses like this one!'
0:02:34 > 0:02:37- LAUGHS - Wow!
0:02:37 > 0:02:40Just look at this!
0:02:40 > 0:02:43I... I don't know. From the outside, I just didn't expect
0:02:43 > 0:02:46this kind of amazing entrance.
0:02:46 > 0:02:52You've got this little porch area. You've got the original glass. Wow!
0:02:52 > 0:02:58And then this archway leading into this beautiful big welcoming central
0:02:58 > 0:03:00hallway area, I suppose.
0:03:00 > 0:03:05Stairway that you can imagine women in long frocks drifting down.
0:03:05 > 0:03:10Am I going over the top here? I like it - if you can't tell!
0:03:10 > 0:03:14Big front room with the bay window.
0:03:14 > 0:03:16Look at the ceiling!
0:03:16 > 0:03:18Fantastic!
0:03:18 > 0:03:21- CHUCKLES - Rear room.
0:03:21 > 0:03:24Same thing with the ceiling.
0:03:24 > 0:03:28This strikes me as a house that's just waiting...
0:03:28 > 0:03:30to be sorted out.
0:03:32 > 0:03:35'Well, the grandeur didn't stop with the front room.
0:03:35 > 0:03:41'The second reception room is also not short on style or space.
0:03:41 > 0:03:45'What a wonderful start to a property.'
0:03:45 > 0:03:48What are we going to find back here?
0:03:48 > 0:03:51Well, a very big kitchen.
0:03:51 > 0:03:56In this part of the house, you think "Yeah, there's work to be done."
0:03:56 > 0:03:59The ceiling's got a hole, probably from a leak in the bath
0:03:59 > 0:04:02or something like that.
0:04:02 > 0:04:06It's a bit icky, isn't it? Needs stripping out.
0:04:06 > 0:04:09You've got a lot of light, a lot of space.
0:04:09 > 0:04:15For a communal area, if you're thinking about renting to students, a great place to have.
0:04:15 > 0:04:20A bit of a utility room, but what you're getting with this house
0:04:20 > 0:04:22is so much space!
0:04:24 > 0:04:26'This house goes on forever.
0:04:26 > 0:04:31'Off the utility area, there's a shower room.
0:04:31 > 0:04:36'There may not be much of a garden, but it does have a parking space.
0:04:36 > 0:04:40'Back inside to have a look at the first floor.'
0:04:40 > 0:04:44Well, upstairs, and that feeling of space just continues.
0:04:44 > 0:04:48In some ways, there's too many open areas.
0:04:48 > 0:04:51Look at this landing and this area here.
0:04:51 > 0:04:55It gives this openness. Maybe not the most efficient use of space.
0:04:55 > 0:05:01It pains me to say it, but maybe you want to rejig the layout a little.
0:05:01 > 0:05:04We've got a bedroom, a bathroom.
0:05:04 > 0:05:09Up the stairs onto another landing, we've got three more bedrooms.
0:05:09 > 0:05:14So what could this place be, other than a majestic family home?
0:05:14 > 0:05:18Let's put the pieces together. We're close to the university.
0:05:18 > 0:05:23We've got big rooms that could be let out individually. It is a student let.
0:05:23 > 0:05:26Work to be done to get into that condition,
0:05:26 > 0:05:30but you've got the makings of a fantastic opportunity.
0:05:37 > 0:05:40'We invited a local estate agent to see what he thinks
0:05:40 > 0:05:44'about the £80,000 guide price for this massive property.'
0:05:44 > 0:05:48The property would appeal to an investor in its current state,
0:05:48 > 0:05:51given that it's seen far, far better days.
0:05:51 > 0:05:57It would be very nice to convert it back into a family residence
0:05:57 > 0:05:59that it once was 100 years ago.
0:05:59 > 0:06:03There's enough flexibility in the house for any investor
0:06:03 > 0:06:06to get easily four or five bedrooms.
0:06:06 > 0:06:09'If it was refurbished as a family home,
0:06:09 > 0:06:13'what does he think it might be worth?'
0:06:13 > 0:06:16Converted back into a family residence,
0:06:16 > 0:06:19you could easily get £165,000, £170,000.
0:06:19 > 0:06:21'Since this is studentland,
0:06:21 > 0:06:24'if someone converted the house to student accommodation,
0:06:24 > 0:06:27'what would that do to its value?'
0:06:27 > 0:06:30Sold as a fully let student property
0:06:30 > 0:06:33we're looking at, at least, £200,000.
0:06:35 > 0:06:38Clearly, lots of work to be done to sort this place out.
0:06:38 > 0:06:42But it ticks every single box for a student let.
0:06:42 > 0:06:47And student lets equal loads of potential money! Great opportunity.
0:06:47 > 0:06:51Let's see who caught it when it went under the hammer.
0:06:51 > 0:06:54Lot number 52, a vacant four-bedroom mid-terraced house...
0:06:54 > 0:06:57'This lot was late in the day
0:06:57 > 0:07:01'and although the crowds have gone, there was still keen interest.'
0:07:01 > 0:07:04Guide price at £80,000.
0:07:04 > 0:07:07£78,000 I'll take. Thank you. 78,000 is bid.
0:07:07 > 0:07:0978 and a half at the back.
0:07:09 > 0:07:1279. And a half, sir?
0:07:12 > 0:07:1580. And a half?
0:07:15 > 0:07:1681...
0:07:16 > 0:07:20'These two battled it out with £500 bids.
0:07:20 > 0:07:23'We rejoin the auction at £90,000.'
0:07:23 > 0:07:25..90,000?
0:07:25 > 0:07:2890 and a half?
0:07:28 > 0:07:3191? And a half?
0:07:31 > 0:07:3592? 93? 94?
0:07:35 > 0:07:4095? 96? At £96,000.
0:07:40 > 0:07:4297?
0:07:42 > 0:07:45Can see you're hovering. Yeah. 97.
0:07:45 > 0:07:4798? 99?
0:07:48 > 0:07:53He's definitely shaking his head. Could be yours, sir, at £98,000.
0:07:53 > 0:07:5699,000 anywhere else?
0:07:56 > 0:07:59Selling, then, for the first time at £98,000.
0:07:59 > 0:08:03Second. Third and final time at 98,000...
0:08:04 > 0:08:07'David made the successful bid of 98,000.
0:08:07 > 0:08:10'He runs a property development company,
0:08:10 > 0:08:13'which is very much a family affair.
0:08:15 > 0:08:18'I met up with David's dad, Dave,
0:08:18 > 0:08:22'and business partner Mark to find out their plans for the place.'
0:08:22 > 0:08:26- David, Mark, lovely to meet you. - Pleasure.- Congratulations.
0:08:26 > 0:08:30- Why did you want to buy this place? - It's what we do. We buy properties.
0:08:30 > 0:08:33We renovate them. We let them.
0:08:33 > 0:08:38And then we sell them on, mainly as joint ventures with investors.
0:08:38 > 0:08:43- So why this particular house?- We've already bought a house in the road,
0:08:43 > 0:08:45which we renovated last year.
0:08:45 > 0:08:51It rented very quickly and sold to one of our existing clients again, very quickly.
0:08:52 > 0:08:56'The pair paid £18,000 over the guide price,
0:08:56 > 0:08:59'but with all their experience, they're confident
0:08:59 > 0:09:02'this place can become a profitable earner.'
0:09:02 > 0:09:06What are you going to do to get this place up to scratch?
0:09:06 > 0:09:10What we're looking to do is to bring stock like this back to life.
0:09:10 > 0:09:14- Yeah.- To stop it being what it is at this point.
0:09:14 > 0:09:17At one point in history, Sunderland had a grand past.
0:09:17 > 0:09:20These houses were built on that wealth.
0:09:20 > 0:09:22What we're trying to do...
0:09:22 > 0:09:26You won't bring back the grandeur, but you'll bring it back to life.
0:09:26 > 0:09:32They'll be lived in and, hopefully, there'll be good memories for the students in years to come.
0:09:32 > 0:09:34In terms of maintaining the grandeur,
0:09:34 > 0:09:38it is grand for sure, is that something you're going to do?
0:09:38 > 0:09:40We keep original features where we can.
0:09:40 > 0:09:44You'll see the likes of the ceiling work will remain.
0:09:44 > 0:09:48Some stuff will be affected because of regulations.
0:09:48 > 0:09:52We have a team of contractors we've worked with for a number of years.
0:09:52 > 0:09:55They know exactly the spec we want.
0:09:55 > 0:09:57They will be in here tomorrow.
0:09:57 > 0:10:01They will rip out the kitchen, bathrooms, carpets.
0:10:01 > 0:10:05Windows are double glazed. They will more than likely stay.
0:10:05 > 0:10:07Then we will rewire, replumb,
0:10:07 > 0:10:11new bathroom, new kitchen, hard-wired smoke alarms.
0:10:11 > 0:10:15Recarpeted throughout and furnished with brand new furniture.
0:10:15 > 0:10:18We don't use any second-hand furniture.
0:10:18 > 0:10:20We don't cut any corners.
0:10:20 > 0:10:26Our contractors will be in and out within four weeks. It'll be a very handsome house when you come back.
0:10:26 > 0:10:32'They have a passion for properties and are combining their preservation of the place
0:10:32 > 0:10:36'with regenerating it for the student market.
0:10:36 > 0:10:41'What will they do to transform it into a property for multiple occupancy?'
0:10:41 > 0:10:45In terms of rooms, it's big enough to knock some out and create more.
0:10:45 > 0:10:50Are you going to keep it like it is or go for maximum number of rooms?
0:10:50 > 0:10:56We never split the rooms. We'll leave the big Victorian rooms as they are.
0:10:56 > 0:11:01It's a great selling point that, at £100 per room per week,
0:11:01 > 0:11:05you can have a purpose-built room that will come with a certain size,
0:11:05 > 0:11:08but for £80, £85 per room per week,
0:11:08 > 0:11:12you can effectively swing cats in these rooms.
0:11:12 > 0:11:16No, the size is a wonderful feature and we wouldn't want to adjust that.
0:11:16 > 0:11:19What about cost? What's the budget?
0:11:19 > 0:11:23In terms of budget, we've got £24,500 plus VAT for the renovation.
0:11:23 > 0:11:25That's precise!
0:11:25 > 0:11:29- Yeah, well...- We do this so we know. - We costed it out.
0:11:29 > 0:11:32That's all in, so that's furniture,
0:11:32 > 0:11:35all the redecoration, everything being done.
0:11:35 > 0:11:41We know what we want to spend for the kitchen. We know the spec, where we're going to buy it from.
0:11:41 > 0:11:44The furniture packs are all lined up.
0:11:44 > 0:11:48We've got a little logistical operation taking place.
0:11:48 > 0:11:54'David and Mark have done their homework when it comes to figures,
0:11:54 > 0:11:57'but there is a lot to do to this place.
0:11:57 > 0:12:01'With their regular team, they're confident it will go without a hitch.
0:12:01 > 0:12:06'These two seem to have a solid working relationship as well.'
0:12:06 > 0:12:08How did you meet? How did you get together?
0:12:08 > 0:12:12Mark's family and our family have known each other for years.
0:12:12 > 0:12:18Our working relationship goes back three years, but the family connection goes back many years.
0:12:18 > 0:12:22- Back to great-granddads and all that.- Really?- Yeah.- Wow.
0:12:22 > 0:12:27So, do you still get excited about turning this kind of place around?
0:12:27 > 0:12:30Absolutely. Ay. Absolutely. Love it.
0:12:30 > 0:12:33Um... But I think you have to do what you love.
0:12:33 > 0:12:38Maybe I played with Lego too much when I was a kid!
0:12:38 > 0:12:40No, we love the houses.
0:12:40 > 0:12:44It's still good to be star-struck, to have a look at a house like this
0:12:44 > 0:12:47and come back a few weeks later - and we all do it -
0:12:47 > 0:12:49open the front door and go, "Wow!"
0:12:49 > 0:12:51It's just a lovely feeling.
0:12:51 > 0:12:55If you like property, this is the kind of thing to do.
0:12:55 > 0:13:01- Listen, congratulations. I can't wait to see how it all turns out. - Thank you very much.- Thank you.
0:13:02 > 0:13:06Well, Mark and David clearly know exactly what they're doing.
0:13:06 > 0:13:09It's not surprising that they went for this place.
0:13:09 > 0:13:14I am delighted that they are going to pretty much keep it as it is.
0:13:14 > 0:13:18It would have been so easy to change what is an amazing place
0:13:18 > 0:13:20just for profit.
0:13:20 > 0:13:23Find out how they get on later in the show.
0:13:25 > 0:13:27I've travelled to Streatham, south London,
0:13:27 > 0:13:30where transport links and affordable property
0:13:30 > 0:13:35make this part of the capital very popular indeed.
0:13:35 > 0:13:38'Bus routes galore and several train stations
0:13:38 > 0:13:42'all keep this part of the capital connected.
0:13:42 > 0:13:46'Just a short walk away is Streatham Hill,
0:13:46 > 0:13:50'where I find today's auction property.'
0:13:50 > 0:13:54I'm here to see a two-bedroom purpose-built flat.
0:13:54 > 0:13:56It had a guide price of 135,000.
0:13:56 > 0:14:01That's extremely good value because a similar two-bed flat in this block
0:14:01 > 0:14:05is on the market for 215 grand!
0:14:05 > 0:14:10Built in 1933, a time when the three-piece suite proved popular,
0:14:10 > 0:14:13most homes had a plumbed-in kitchen
0:14:13 > 0:14:16and three out of four households had a radio.
0:14:16 > 0:14:18It's an attractive frontage
0:14:18 > 0:14:22and I can't wait to get inside and take a closer look.
0:14:23 > 0:14:28'The flats were designed by Frank Harrington in the Dutch style,
0:14:28 > 0:14:31'with a mansard roof incorporating dormer windows.
0:14:31 > 0:14:34'I'm hoping the gutters aren't clogged up.
0:14:34 > 0:14:38'There are tulips, but this garden has some impressive rose bushes too.
0:14:38 > 0:14:41'They look fairly well established.
0:14:41 > 0:14:44'Inside, the building is showing its age.
0:14:44 > 0:14:47'But in a good way - the letter boxes, the newel posts.
0:14:47 > 0:14:50'This place really has retained its 1930s' charm.'
0:14:50 > 0:14:57Now I'm not going to get too hung up on the fact that I've had to walk up two flights of stairs.
0:14:57 > 0:15:00I've never seen such wonderfully decorated communal parts.
0:15:00 > 0:15:04I can't say the same about this flat. It's in a bit of a state.
0:15:04 > 0:15:07But you have got lots of storage.
0:15:07 > 0:15:11Good size kitchen and a really lovely size lounge.
0:15:11 > 0:15:15The thing I like about this flat is that all the rooms are big,
0:15:15 > 0:15:17they're square.
0:15:17 > 0:15:19You need a complete overhaul.
0:15:19 > 0:15:23Somebody needs to get in and strip the place back.
0:15:23 > 0:15:27But one nice thing - you have fantastic floorboards.
0:15:27 > 0:15:30They're in really good condition.
0:15:30 > 0:15:34You could get away with having lovely wooden floorboards.
0:15:34 > 0:15:38You've got beautiful windows. My guess is you can't change them.
0:15:38 > 0:15:41Everything in this building has to look uniform.
0:15:41 > 0:15:46You can hear the traffic, but once they've been painted, they will look lovely.
0:15:46 > 0:15:51This is a great flat. I love the outside. I love the interior. A big tick.
0:15:51 > 0:15:57I'm a fan of this flat. The bones are here. The configuration works.
0:15:57 > 0:15:59'Having said that, looking around,
0:15:59 > 0:16:04'it becomes clear that the flat does require a serious cash injection.
0:16:04 > 0:16:09'The cracks in the bedroom give me a bit of a sinking feeling.'
0:16:09 > 0:16:12What do YOU want to get out of your bathroom?
0:16:12 > 0:16:17You want to lay in a warm, soapy, bubbly bath, light some candles,
0:16:17 > 0:16:20luxuriate and relax!
0:16:20 > 0:16:24Funny! I don't think I could do any of those things in here!
0:16:27 > 0:16:31'I usually paint the town red after enjoying a bath.
0:16:31 > 0:16:35'It looks like someone decided against going out, and stayed in
0:16:35 > 0:16:37'to paint their bath blue!
0:16:37 > 0:16:41'An odd choice, so this entire suite will have to go.
0:16:41 > 0:16:44'The second bedroom is larger than the first.
0:16:44 > 0:16:47'Once all this clutter is gone, it'll be a really good space.
0:16:47 > 0:16:52'Again, single pane windows, but at least you look out onto the garden.'
0:16:52 > 0:16:55There's not much of a grassy area,
0:16:55 > 0:17:00but you do have the benefit of this lovely communal garden
0:17:00 > 0:17:05complete with pretty flowers and this wonderful old ornamental pond.
0:17:05 > 0:17:09I could sit out here for hours. How absolutely fabulous, darling!
0:17:13 > 0:17:16'Oh, well! With such a little Eden tucked away,
0:17:16 > 0:17:20'you get the best of both worlds - peace and quiet
0:17:20 > 0:17:22'and access to great transport.'
0:17:22 > 0:17:24I like this flat.
0:17:24 > 0:17:26It's got an attractive frontage,
0:17:26 > 0:17:31glorious communal gardens, but it does come at a price, I'm afraid.
0:17:31 > 0:17:35The service charge is a staggering £3,000 a year!
0:17:35 > 0:17:40This does include all hot water bills and central heating charges,
0:17:40 > 0:17:44but still, that is a substantial amount to pay annually.
0:17:44 > 0:17:48If you fail to read the legal pack, it could come as quite a shock!
0:17:50 > 0:17:54'But is this flat value for money at its guide price of 135,000?
0:17:54 > 0:17:58'We asked a local estate agent for his opinion.'
0:17:58 > 0:18:03It needs TLC. It needs modernising and just a total makeover.
0:18:03 > 0:18:09It has a lot of potential. Excellent for a first-time buyer or investor.
0:18:09 > 0:18:12I'd love to see it once it's been modernised.
0:18:12 > 0:18:17'Once it's beautified, what would the rental and resale values of this flat be?'
0:18:17 > 0:18:20Once this flat is modernised,
0:18:20 > 0:18:26this flat could be put on the rental market for approximately £1,100 per month.
0:18:26 > 0:18:29Once refurbished,
0:18:29 > 0:18:33the maximum I could put this on the market for would be £210,000.
0:18:34 > 0:18:38The £3,000 service charge will put some buyers off,
0:18:38 > 0:18:42but the lovely period features, this fabulous communal garden
0:18:42 > 0:18:45and convenient location will win people over
0:18:45 > 0:18:49and make them forget about that astronomical annual payment.
0:18:49 > 0:18:53Let's see who fancied this 1930s gem as we go to auction.
0:18:53 > 0:18:58Right, next flat, Streatham Hill, SW2. I don't know, start at 120.
0:18:58 > 0:19:00Not going to go below 120.
0:19:00 > 0:19:05120 sitting down. 120. 125?
0:19:05 > 0:19:08125 with you. 130.
0:19:08 > 0:19:10135.
0:19:10 > 0:19:12140.
0:19:12 > 0:19:13145.
0:19:13 > 0:19:16146, new spot. 147.
0:19:16 > 0:19:19148? 149?
0:19:20 > 0:19:23150? 151?
0:19:23 > 0:19:26152? 153?
0:19:26 > 0:19:30154? 155?
0:19:30 > 0:19:32156?
0:19:32 > 0:19:33157?
0:19:36 > 0:19:38158? 159?
0:19:38 > 0:19:42Oh, you've got to! Looking for 159. Well done.
0:19:42 > 0:19:45160? We'll go 161?
0:19:45 > 0:19:47162?
0:19:47 > 0:19:50163? You must do.
0:19:50 > 0:19:53Where? Oh, 163! Sorry.
0:19:53 > 0:19:55163. 164?
0:19:55 > 0:19:58165? 166?
0:19:58 > 0:20:00167? 168?
0:20:00 > 0:20:04169? 170?
0:20:04 > 0:20:06171? 172?
0:20:06 > 0:20:11If not, it's 172, sitting down. The first time. Sec...
0:20:11 > 0:20:14173. 174?
0:20:14 > 0:20:16175?
0:20:16 > 0:20:20174 with you. First time.
0:20:20 > 0:20:23Second time. Third and last time, if you're all done...
0:20:23 > 0:20:25Sold, 174.
0:20:27 > 0:20:32'The successful bid of 174,000 was made by Barbara.
0:20:32 > 0:20:35'She divides her time between Italy, where she lives, and the UK,
0:20:35 > 0:20:38'where some of her family are.
0:20:38 > 0:20:42'She's no stranger to property and no stranger to this programme.
0:20:42 > 0:20:45'Barbara appeared on the show in 2010.'
0:20:45 > 0:20:50- Barbara, lovely to meet you. We've seen you on the show before.- Yes.
0:20:50 > 0:20:54- What's the story behind this property?- It's the usual story.
0:20:54 > 0:20:58I just kind of look when I'm ready to buy again
0:20:58 > 0:21:00and this one cropped up.
0:21:00 > 0:21:05- This was the last one on my list. - How long have you been buying and selling property?
0:21:05 > 0:21:07Hm. 1988?
0:21:07 > 0:21:10- Years of experience.- Lots.
0:21:10 > 0:21:16- What were you doing prior to that? - I was working for a top-end kitchen company.
0:21:16 > 0:21:18And met up with a friend
0:21:18 > 0:21:22who was actually buying property and letting to students.
0:21:22 > 0:21:25So, basically, I thought I'll have a go.
0:21:25 > 0:21:31That's what started it off and I've had lots and lots of properties since.
0:21:31 > 0:21:34Wow! Go on, roughly how many?
0:21:34 > 0:21:37Well into the 30s. 40, you know.
0:21:37 > 0:21:41But, I mean, I've kind of worked at the same time.
0:21:41 > 0:21:46It's always been a sort of pastime which I've thoroughly enjoyed.
0:21:46 > 0:21:51Because interior design is my profession, if you like.
0:21:51 > 0:21:58So...this went very nicely with that role in my life.
0:21:58 > 0:22:02- You really have got an eye for detail.- Yes.
0:22:02 > 0:22:09You obviously don't live in Streatham. Have you researched this area and this block in particular?
0:22:09 > 0:22:13No, but my daughter is in the business.
0:22:13 > 0:22:17She actually sourced this particular one.
0:22:17 > 0:22:25- I trust her and she's rarely been wrong.- You and your family have got the finger right on the pulse.
0:22:25 > 0:22:30- So do you intend to sell or let this flat?- This one I'm going to sell.
0:22:35 > 0:22:39'I've no doubt Barbara and her team will do a sterling job here,
0:22:39 > 0:22:44'but there's one thorny issue that does come with this flat.
0:22:44 > 0:22:47'That's the three grand a year service charge!'
0:22:47 > 0:22:50It's quite high. Very high, in fact.
0:22:50 > 0:22:56It may put the odd... It might put someone off, I don't know. We'll see.
0:22:56 > 0:22:59- It didn't put you off. - It didn't put me off, no.
0:22:59 > 0:23:02I think it'll sell reasonably well.
0:23:02 > 0:23:04The position is good.
0:23:04 > 0:23:06Fingers crossed.
0:23:06 > 0:23:11'Let's not forget that service charge does include heating and hot water bills.
0:23:11 > 0:23:14'It's not all for maintenance of the building.
0:23:14 > 0:23:19'What will Barbara do to set this flat apart from others in the block?'
0:23:19 > 0:23:21Everything new.
0:23:21 > 0:23:24New kitchen, new bathroom.
0:23:24 > 0:23:31Details are important if you want to sell sooner rather than later.
0:23:31 > 0:23:36The quality of one or two of the items, the kitchen, the layout.
0:23:36 > 0:23:41I don't like things done cheaply, to look cheap.
0:23:41 > 0:23:45You can buy really well and tight on the budget,
0:23:45 > 0:23:49but you don't really want to make it look
0:23:49 > 0:23:53as if it's just the average refurb.
0:23:53 > 0:23:57What budget have you got in mind for this type of property?
0:23:57 > 0:24:04I told the builder I've got ten grand to spend on this property, so that really means buying right.
0:24:04 > 0:24:09And we've managed it. Everything's bought already.
0:24:09 > 0:24:14How long's it going to take you and your professional guys to get out and get it on the market?
0:24:14 > 0:24:16- Four or five weeks.- Really?- Yeah.
0:24:16 > 0:24:18Provided nothing goes wrong.
0:24:18 > 0:24:23I'm not quite sure. It's a fairly solid block.
0:24:23 > 0:24:26I don't have to worry about exterior walls.
0:24:26 > 0:24:28We're two storeys up.
0:24:28 > 0:24:31And gable ends - I've been there, done that.
0:24:31 > 0:24:36'And when she's not in the UK buying property,
0:24:36 > 0:24:40'does Barbara live la dolce vita in Italy?'
0:24:42 > 0:24:46We are building a couple of villas at the moment.
0:24:46 > 0:24:51- Wow!- We just saw this wonderful piece of land
0:24:51 > 0:24:56He said, "Let's build a couple of villas." So that's what we're doing.
0:24:56 > 0:25:01But that wasn't enough! You need a two-bedroom flat in Streatham!
0:25:01 > 0:25:03I do nothing in Italy.
0:25:03 > 0:25:07But I sit in the sunshine, you know, swim in the pool.
0:25:07 > 0:25:12And it's very nice but, you know, you can get bored.
0:25:12 > 0:25:14- You need work to do.- Yes. I love it.
0:25:14 > 0:25:16It's fun. It's fun.
0:25:16 > 0:25:18Do your homework!
0:25:18 > 0:25:25Do it right and after a few goes it becomes, you know, pleasurable.
0:25:25 > 0:25:28Top tip from top property developer, Barbara.
0:25:28 > 0:25:32- Good luck with this project. - Thank you so much. Fingers crossed.
0:25:34 > 0:25:38From Italian villas to a two-bedroom flat in Streatham Hill.
0:25:38 > 0:25:43Barbara can turn her hand to anything, big or small.
0:25:43 > 0:25:47But a timescale of four to six weeks, is that realistic?
0:25:47 > 0:25:50Will she complete this for just £10,000?
0:25:50 > 0:25:53You can find out what happens later in the programme.
0:25:54 > 0:25:58'Coming up, I meet the neighbours, the church, the goat.'
0:25:58 > 0:26:03And one other thing - Yeovilton Royal Naval Air Station.
0:26:04 > 0:26:10'In Streatham, southwest London, is it arrivederci Italy for Barbara?'
0:26:10 > 0:26:14Big question mark now, but I'll keep you posted on that one.
0:26:16 > 0:26:20'First, back to Sunderland, where property students should take note.'
0:26:20 > 0:26:24This has worked very nicely for us. We will be buying at auction again.
0:26:26 > 0:26:31'We return, now, to Sunderland, to see how David and Mark got on
0:26:31 > 0:26:35'with their mid-terrace in Studentland.
0:26:35 > 0:26:39'Outside, the four-bedroom mid-terrace was showing its age.
0:26:39 > 0:26:43'The rear yard was a dumping ground with a car space.
0:26:43 > 0:26:47'The traditional layout remained and there was tons of space.
0:26:47 > 0:26:51'Two reception rooms...
0:26:51 > 0:26:53'four bedrooms...
0:26:53 > 0:26:56'and two bathrooms.
0:26:56 > 0:27:02'Property investment managers Mark and David planned to renovate the house for the student market,
0:27:02 > 0:27:06'but they had a soft spot for a period property.'
0:27:06 > 0:27:10You won't bring it back to the grandeur but you'll bring it back to life.
0:27:10 > 0:27:15'David and Mark paid £98,000 and have a keen eye for a budget.
0:27:15 > 0:27:22'They allocated £24,500 for everything, including fixtures and fittings.
0:27:22 > 0:27:26'They planned to turn this large house around within four weeks,
0:27:26 > 0:27:29'with a crack team of builders.
0:27:29 > 0:27:36'We've come back eight weeks later to see if Mark and David have reclaimed the house from neglect.
0:27:39 > 0:27:43'Outside, the house has been freshened up.
0:27:43 > 0:27:46'That sad rear yard is now a useable space.
0:27:46 > 0:27:49'The kitchen is unrecognisable,
0:27:49 > 0:27:52'and the downstairs shower room now looks like somewhere
0:27:52 > 0:27:55'you might actually want to get clean!
0:27:55 > 0:27:58'They've turned the living room into a bedroom,
0:27:58 > 0:28:02'so the four-bedroom house has become a five-bedroom house,
0:28:02 > 0:28:06'without sacrificing any original features.'
0:28:06 > 0:28:09All of the features that were in the property remain.
0:28:09 > 0:28:12We tried to keep the character of the building.
0:28:12 > 0:28:16We don't want to put false ceilings into a lovely Victorian house.
0:28:16 > 0:28:18The ceilings are all beautiful.
0:28:18 > 0:28:22They're all original. That's the reason we've kept them.
0:28:22 > 0:28:27'David and Mark are developers with respect for the heritage of a building.
0:28:27 > 0:28:31'That needs to be combined with good commercial sense.
0:28:31 > 0:28:34'Multiple occupancy lets like this
0:28:34 > 0:28:38'are subject to strict health and safety requirements.
0:28:38 > 0:28:40'It's not as simple as it looks.'
0:28:40 > 0:28:44We've done quite a lot of work. It's had a full rewire.
0:28:44 > 0:28:49It's had a fire alarm put into the property, emergency lighting,
0:28:49 > 0:28:52a new boiler, all done to a very good standard.
0:28:52 > 0:28:54Yeah. We're right happy with it.
0:28:54 > 0:28:58'Upstairs, the four original bedrooms have been rejuvenated
0:28:58 > 0:29:01'with the same palette of colours and fabrics.
0:29:01 > 0:29:04'I'm starting to see a pattern emerging.'
0:29:07 > 0:29:11The finish we've gone for is a standard finish.
0:29:11 > 0:29:15We have a number of student properties round the country.
0:29:15 > 0:29:19In any of our properties you'll see the same kitchen,
0:29:19 > 0:29:23the same wallpaper and the same furniture.
0:29:23 > 0:29:25'Standardising the look of their properties
0:29:25 > 0:29:29'does not mean standards drop for these developers.'
0:29:29 > 0:29:34The bathrooms are a matte travertine tile, which is modern and chic.
0:29:34 > 0:29:37It'll let well and, hopefully, sell well.
0:29:37 > 0:29:43'That readiness to let or sell is key to how Mark and David's business operates.
0:29:43 > 0:29:47'Once they've refurbished a property they sell it on, tenanted,
0:29:47 > 0:29:50'and offer to manage it on behalf of the investor.'
0:29:50 > 0:29:54We tend not to buy burned-out shells
0:29:54 > 0:29:58or anything with subsidence or major defects.
0:29:58 > 0:30:02We tend to buy "Grandma's house", which is what this was.
0:30:02 > 0:30:05It was a tired old house. It was structurally sound.
0:30:05 > 0:30:09It needed some TLC, which is what we've done.
0:30:09 > 0:30:12'Mark and David have shown the love to this house
0:30:12 > 0:30:16'and have turned it from a four to a five-bedroom property.
0:30:16 > 0:30:21'Needless to say, they stayed bang on their budget of £24,500.
0:30:21 > 0:30:25'So, since they bought it for £98,000,
0:30:25 > 0:30:29'their total outlay is £122,500.
0:30:30 > 0:30:34'Time to find out what two local experts think of their work.'
0:30:34 > 0:30:40First impressions, it's a very well-modernised four to five bedroom terraced house.
0:30:40 > 0:30:46There's a ground floor shower room as well as a first floor bathroom.
0:30:46 > 0:30:50The whole feeling of the building has changed completely.
0:30:50 > 0:30:55It's gone from what was quite a wreck to a multi-let student home
0:30:55 > 0:30:57or a nice big family home.
0:30:57 > 0:31:00It's a triple-M - a money making machine.
0:31:00 > 0:31:02It's a great investment opportunity.
0:31:02 > 0:31:08'High praise, indeed. What do they think the place could sell for?'
0:31:08 > 0:31:13Resale value, current market, around about £155,000.
0:31:13 > 0:31:18In terms of selling price now, as a much-improved property,
0:31:18 > 0:31:23easily, the market value we're talking £150,000 or £160,000.
0:31:24 > 0:31:28'Those valuations would give Mark and David a profit
0:31:28 > 0:31:33'of between £27,500 and £37,500 before costs and expenses.'
0:31:33 > 0:31:37It's on the money. We were looking for 155.
0:31:37 > 0:31:40We've worked our figures on 155.
0:31:40 > 0:31:44We think we'll get a touch more than that based on the yield.
0:31:44 > 0:31:50- If someone offered that tomorrow, we'd say yes and move on. - Yes. Happy with that.
0:31:50 > 0:31:55'The business model for their company is to sell properties tenanted and offer to manage them
0:31:55 > 0:31:57'on behalf of the new owner.
0:31:57 > 0:32:03'The estate agents estimated an income for the house as a five-bedroom student let
0:32:03 > 0:32:06'of between £1,400 and £1,600 a month.
0:32:06 > 0:32:10'That could mean a very impressive annual yield of around 15%.
0:32:10 > 0:32:15'It's clear these guys know their market extremely well.'
0:32:15 > 0:32:19We buy in areas that are suitable for our tenants,
0:32:19 > 0:32:23which is within 20 minutes' walk of a university.
0:32:23 > 0:32:26This has worked very nicely for us. We will be buying at auction again.
0:32:31 > 0:32:35I'm in one of the most beautiful counties in Britain,
0:32:35 > 0:32:39in a little village called Yeovilton in Somerset.
0:32:39 > 0:32:44There's no pub. There isn't a shop, just a church and some pretty houses.
0:32:44 > 0:32:50Oh! And one other thing - Yeovilton Royal Naval Air Station.
0:32:50 > 0:32:56Which means there is lots of air traffic and lots of noise.
0:32:56 > 0:33:00# In the background noise comes the world of choice
0:33:00 > 0:33:04# In the distance, a familiar voice
0:33:04 > 0:33:09# It's the one, it's the one I adore... #
0:33:10 > 0:33:15'Not the standard traffic noise that most buyers are used to.
0:33:15 > 0:33:20'With lovely stone cottages, surely there's more than meets the ear.'
0:33:20 > 0:33:26I'm here to see a two-bedroomed end of terrace house.
0:33:26 > 0:33:29This is it. Looks fairly unassuming.
0:33:29 > 0:33:32Guide price, 195,000 quid.
0:33:34 > 0:33:38No. You heard right. 195,000. That's not 95,000.
0:33:38 > 0:33:41195,000 for that?
0:33:41 > 0:33:43You've got to be kidding!
0:33:43 > 0:33:48'This property does look a bit small from the outside,
0:33:48 > 0:33:51'but as it's an end of terrace, there's potential to extend.
0:33:51 > 0:33:57'And with a guide price of 195,000, that's the least you should expect.'
0:33:57 > 0:34:00# Going back, I'm going back
0:34:01 > 0:34:05# I'm going back to country living
0:34:05 > 0:34:09# Where the air is fresh and clean... #
0:34:11 > 0:34:13Ignore that price for the moment.
0:34:13 > 0:34:17What have we got? Through the door, downstairs loo.
0:34:17 > 0:34:21Then into the kitchen which, frankly, is a bit disappointing.
0:34:21 > 0:34:25You expect a cottagey feel for a cottagey type place like this.
0:34:25 > 0:34:29It's utilitarian and I suppose it does the job.
0:34:29 > 0:34:31Dining area over there.
0:34:31 > 0:34:38It's not a bad size space but I'm not seeing anything that's deserved of the price, so far.
0:34:41 > 0:34:46'A property in need of serious space enhancement, if ever I saw one.
0:34:46 > 0:34:49'The living room's on the small side.
0:34:49 > 0:34:53'Upstairs, I find the bathroom. It's basic and feels pretty cramped.
0:34:53 > 0:34:58'And two smallish bedrooms, all in need of refurbishment.'
0:35:03 > 0:35:08The property backs onto the Royal Naval Air Station here in Yeovilton.
0:35:08 > 0:35:13It means lots of noise from helicopters taking off, planes, whatever.
0:35:13 > 0:35:19The whole area has a Category D noise classification, which means unacceptable levels of noise!
0:35:19 > 0:35:24It also affects planning applications for any houses that might be built.
0:35:24 > 0:35:28The good news is that it looks like
0:35:28 > 0:35:31the station is going to be reclassified as Category C.
0:35:31 > 0:35:36Lower levels of noise. That could have very interesting implications.
0:35:36 > 0:35:38# It's a beautiful noise
0:35:39 > 0:35:41# And it's a sound that I love
0:35:43 > 0:35:45# And it fits me as well
0:35:46 > 0:35:49# As a hand in a glove
0:35:49 > 0:35:51# Yes, it does
0:35:51 > 0:35:53# Yes, it does
0:35:53 > 0:35:57# What a beautiful noise... #
0:35:57 > 0:36:03At the rear of the property things start to get really interesting from an investment point of view.
0:36:03 > 0:36:07The property comes with this bit of land. It's 0.6 acres.
0:36:07 > 0:36:11It's fairly flat. It's got access onto the road.
0:36:11 > 0:36:15It's got services from the house. What is that? It's a building plot!
0:36:15 > 0:36:17Could you build on there?
0:36:17 > 0:36:21It all comes down to the noise classification of the air base.
0:36:21 > 0:36:27If the review drops that classification, this becomes a very viable building plot.
0:36:27 > 0:36:32I reckon you could get six, maybe seven houses on there.
0:36:32 > 0:36:36Suddenly, that £195,000 guide price seems a bit of a snip.
0:36:40 > 0:36:43'So it's outside where this lot literally takes off.
0:36:43 > 0:36:48'We asked a local estate agent for his view of the property.'
0:36:48 > 0:36:53The land is a big selling point for this property.
0:36:53 > 0:36:58We've got a two-bed end terrace. They can extend the property.
0:36:58 > 0:37:02A four-bed house on this site will fit well with the land.
0:37:02 > 0:37:07'What price would this cottage fetch if extended and sold on?'
0:37:07 > 0:37:11If they downgrade the noise band
0:37:11 > 0:37:13and this property is extended
0:37:13 > 0:37:17it should be worth in the region of £300,000.
0:37:17 > 0:37:22If you didn't extend it and just renovated the cottage as it is,
0:37:22 > 0:37:25it would sell for probably in the region of £250,000.
0:37:25 > 0:37:28'What about the rental market?'
0:37:28 > 0:37:32If this property was renovated, extended and let out,
0:37:32 > 0:37:36it should achieve, with the paddock, about £750 a month.
0:37:36 > 0:37:41If you didn't extend it and renovated as it is,
0:37:41 > 0:37:44it would let for £500 per calendar month.
0:37:44 > 0:37:47It looks like I'm going to have to eat my words.
0:37:47 > 0:37:50This place could be a great investment.
0:37:50 > 0:37:54Even if you didn't get permission to build houses on the land,
0:37:54 > 0:37:58just by extending the property, you could do very nicely, thank you.
0:37:58 > 0:38:01Let's see who fancied it when it went under the hammer.
0:38:01 > 0:38:07Two-bedroom end of terrace cottage with a wonderful garden.
0:38:07 > 0:38:11Our guide is 195,000. Would someone like to put me straight in?
0:38:11 > 0:38:15Can't work out the hieroglyphics. 170. 170, thank you.
0:38:15 > 0:38:18175. 180.
0:38:18 > 0:38:20185. 190.
0:38:20 > 0:38:23190.
0:38:23 > 0:38:25190. 192.
0:38:25 > 0:38:28195. 195.
0:38:28 > 0:38:30At 195,000.
0:38:30 > 0:38:35At £195,000...
0:38:35 > 0:38:38- BANGS GAVEL - Congratulations. 195.
0:38:38 > 0:38:44'Former estate agent Nick has bought this place for its tremendous development potential.
0:38:44 > 0:38:48'I caught up with him and his wife Janet at the cottage
0:38:48 > 0:38:51'to discuss the options here.'
0:38:51 > 0:38:56- Nick, lovely to meet you. Congratulations.- Thank you. - Tell me why you wanted this place.
0:38:56 > 0:39:00It's got a bit of land, which is unusual for a small cottage.
0:39:00 > 0:39:02It gives it potential to extend
0:39:02 > 0:39:07and possibly potential beyond that, depending on planning permissions.
0:39:07 > 0:39:09You paid 195, the guide price.
0:39:09 > 0:39:12When I first heard that figure, I was like, "What?"
0:39:12 > 0:39:17It sounded a lot for the cottage but, presumably, it's the land
0:39:17 > 0:39:20that's the key putting it at that price.
0:39:20 > 0:39:22I hope you're wrong.
0:39:22 > 0:39:25- What? That's it's a lot? - That it was a lot.
0:39:25 > 0:39:28Most things shot up over the guide price.
0:39:28 > 0:39:32I was very pleased to get it for what I paid for it.
0:39:32 > 0:39:35I think it was fairly well priced.
0:39:35 > 0:39:40- Without the land, what would this cottage have cost? - Probably about 135,000.
0:39:40 > 0:39:42- About 60 grand for the land?- Yeah.
0:39:44 > 0:39:47'Nick plans to extend at the side of the property,
0:39:47 > 0:39:49'creating a two-storey extension.
0:39:49 > 0:39:54'That will give greater living space downstairs and bigger bedrooms upstairs.
0:39:54 > 0:39:56'Much needed, I'd say.'
0:39:57 > 0:40:01All of that, of course, is subject to planning permission.
0:40:01 > 0:40:05Planning permission's been a sticky old wicket, hasn't it?
0:40:05 > 0:40:09Yes. I gather planning in this area is not the easiest,
0:40:09 > 0:40:12due to the air base at the rear of this cottage.
0:40:12 > 0:40:15- That doesn't put you off? - No, I don't think so.
0:40:15 > 0:40:19We're hoping there'll be a reclassification of the noise.
0:40:19 > 0:40:21It's Category D at the moment.
0:40:21 > 0:40:27The MOD wants to build within the air base for the servicemen, so they can cycle to work.
0:40:27 > 0:40:32And, hopefully, that will result in a declassification of the noise.
0:40:32 > 0:40:36Which may change the planning potential for property in this area.
0:40:36 > 0:40:42The best case scenario is that you can put an extension on the side.
0:40:42 > 0:40:45In 2004, the owners put an application in
0:40:45 > 0:40:50for a terrace of four cottages to continue in line with these four.
0:40:50 > 0:40:55Which, potentially, could fit another two or three detached properties on.
0:40:55 > 0:40:59Wow! So you could have four terraces that way.
0:40:59 > 0:41:02Then three detached properties on the paddock?
0:41:02 > 0:41:06That would be the best possible scenario. Yes.
0:41:06 > 0:41:10Would you do that or get that planning then sell it on?
0:41:10 > 0:41:14- I'd sell it on.- With that planning? - Yes. I'd do the extension.
0:41:14 > 0:41:17But I would sell with planning. I'm not a builder.
0:41:17 > 0:41:22'Not a builder, but a very shrewd businessman, it seems.
0:41:22 > 0:41:25'That is IF he manages to pull this off.'
0:41:25 > 0:41:27# Mr Businessman
0:41:27 > 0:41:31# You tell me that you haven't got no time
0:41:31 > 0:41:36# Cos you believe that money makes a man, Mr Businessman... #
0:41:36 > 0:41:38If you got planning permission for that
0:41:38 > 0:41:45best case scenario, do you have any idea what the land you would sell would be worth?
0:41:45 > 0:41:48Yes. It would depend on the timescale.
0:41:48 > 0:41:53But at current prices, you're talking a little shy of about a million pounds.
0:41:54 > 0:41:58- But that's a scenario that is unlikely.- A million?- Yes.
0:41:58 > 0:42:04- One-zero-zero...?- Six noughts, yes. - Wow!- Including the cottage.
0:42:04 > 0:42:08- Oh, right. OK.- The cottage, terrace and three plots on the front.
0:42:08 > 0:42:12- But not doing any building, just selling it?- Only the extension.
0:42:12 > 0:42:18'What kind of a budget does Nick estimate for this cottage?'
0:42:18 > 0:42:23If the extension goes on the side, I'd reckon on spending up to £35,000.
0:42:23 > 0:42:26But we've got to see what size extension.
0:42:26 > 0:42:30This is a two-bedroom cottage. They might not want it over-extended.
0:42:30 > 0:42:35It's a fascinating story. Thank you for sharing it with us. Good luck!
0:42:35 > 0:42:37I need it. Yeah.
0:42:39 > 0:42:44I can't remember a story which has such a range of potential outcomes.
0:42:44 > 0:42:50From Nick just breaking even to, potentially, making around £750,000 worth of profit.
0:42:50 > 0:42:55It all comes down to reclassification of noise levels
0:42:55 > 0:42:58and, of course, getting that planning permission.
0:42:58 > 0:43:01You can find out what happens later in the show.
0:43:04 > 0:43:09Our property owners were certainly eager beavers when we left them.
0:43:09 > 0:43:13- Did they grab the bull by the horns? - Let's find out.
0:43:14 > 0:43:17'We're back in Streatham, south London,
0:43:17 > 0:43:20'to see how kitchen designer Barbara got on
0:43:20 > 0:43:24'with a characterful 1930s flat in this mansion block.
0:43:25 > 0:43:28'Splitting her time between Italy and the UK,
0:43:28 > 0:43:33'Barbara has developed over 30 properties since the late 1980s.
0:43:33 > 0:43:37'Inside, the two-bedroom flat had been unloved for a long time.
0:43:37 > 0:43:40'There were some original features buried under paintwork.
0:43:40 > 0:43:43'There wasn't much of a kitchen
0:43:43 > 0:43:48'and the bathroom had been given the blue treatment with paint!
0:43:48 > 0:43:51'Barbara has an eagle eye for detail
0:43:51 > 0:43:56'and fully intended to bring it to bear on this property.'
0:43:56 > 0:44:02We don't really want to make it look as if it's just the average refurb.
0:44:05 > 0:44:08'Barbara paid 174,000 for the flat
0:44:08 > 0:44:13'and had set aside a budget of £10,000 to spend refurbishing it.
0:44:13 > 0:44:16'With her trusted team of builders,
0:44:16 > 0:44:20'she planned to turn it around in four to six weeks.
0:44:20 > 0:44:24'We've come back just seven weeks later to see if Barbara's
0:44:24 > 0:44:28'put the sparkle back into this classic London home.'
0:44:28 > 0:44:30# Oh, life could be a dream
0:44:30 > 0:44:33# If I could take you up in paradise up above
0:44:33 > 0:44:37# If you would tell me I'm the only one that you love
0:44:37 > 0:44:39# Life could be a dream, sweetheart. #
0:44:39 > 0:44:43'The tired old flat has been completely rejuvenated.
0:44:43 > 0:44:47'The sitting room is now comfortable and stylish.
0:44:47 > 0:44:51'It has a fresh contemporary look which manages to incorporate
0:44:51 > 0:44:55'the very best of the 1930s details that were originally here.
0:44:55 > 0:44:57'The small kitchen didn't look like
0:44:57 > 0:45:01'it was ever going to be a fun space to spend time.
0:45:01 > 0:45:05'But kitchen designer Barbara knew exactly how to fix it.'
0:45:05 > 0:45:08I have to say the kitchen was really awful.
0:45:08 > 0:45:12I don't know how they used it before.
0:45:12 > 0:45:15But we've managed to turn it around
0:45:15 > 0:45:21and make a very reasonable functional kitchen.
0:45:21 > 0:45:24Dishwasher, washing machine
0:45:24 > 0:45:26and all the appliances that you need.
0:45:26 > 0:45:30# Life could be a dream, sweetheart Hello, hello again... #
0:45:30 > 0:45:34'She makes it sound straightforward but it's quite a feat
0:45:34 > 0:45:38'bringing such a forlorn flat back to life.'
0:45:38 > 0:45:42Pretty awful. It was seriously neglected.
0:45:43 > 0:45:48I think nothing had been done for 30 years-plus.
0:45:48 > 0:45:50We tried to keep the doors, the originals.
0:45:50 > 0:45:54There's only one that we, in desperation, had to get rid of.
0:45:54 > 0:46:00We've got original features where possible, including the fireplace.
0:46:00 > 0:46:06Well, it was a matter of do we paint the hardboard white
0:46:06 > 0:46:09or do we just have a look,
0:46:09 > 0:46:11see what's behind it?
0:46:11 > 0:46:16We had a look and we found the oak surround fireplace.
0:46:19 > 0:46:25'One place she was not keen to retain the original features was the blue-painted bathroom!'
0:46:25 > 0:46:30The bathroom was equally as bad as the kitchen.
0:46:30 > 0:46:36But as you can see, we've managed to make a very, very decent job.
0:46:36 > 0:46:40Top to bottom travertino, which is rather nice in a bathroom.
0:46:40 > 0:46:46One or two interesting features, and here we are.
0:46:49 > 0:46:51'Not everything went Barbara's way.
0:46:51 > 0:46:56'The flat is on a busy road and would benefit from double glazing.'
0:46:56 > 0:47:01The windows, we did apply to change them for double glazing.
0:47:01 > 0:47:04But, apparently, it's a conservation area,
0:47:04 > 0:47:08so therefore, we can't actually change them.
0:47:08 > 0:47:12We can do some sort of double glazing on the inside.
0:47:12 > 0:47:15It's nice that it's in a conservation area.
0:47:15 > 0:47:19The minus is that you have to leave the windows.
0:47:19 > 0:47:24'The windows are an original feature Barbara would have liked to change.
0:47:24 > 0:47:28'Perhaps that meant she saved some of her £10,000 budget?'
0:47:28 > 0:47:32We got a little bit carried away.
0:47:32 > 0:47:35We actually reached 11,300, in the end.
0:47:35 > 0:47:40Um...searching, cherry picking for bargains, basically.
0:47:40 > 0:47:43And we got there.
0:47:43 > 0:47:47'Barbara bought the flat for 174,000
0:47:47 > 0:47:51'and spent £11,300 on the refurbishment,
0:47:51 > 0:47:56'bringing her total outlay to £185,300.
0:47:56 > 0:48:01'It's time to find out what two local experts think of her work.'
0:48:01 > 0:48:04It's been extremely well refurbished.
0:48:04 > 0:48:09Quality of the finish is good. There are stone tiles in the bathroom,
0:48:09 > 0:48:12which look really nice.
0:48:12 > 0:48:15All the surfaces and stainless steel looks really good.
0:48:15 > 0:48:19Sometimes with something that's newly refurbished,
0:48:19 > 0:48:22you can see some issues with it.
0:48:22 > 0:48:26Here, it's been well done. A nice mixture of contemporary finish
0:48:26 > 0:48:30with some good period and character features.
0:48:30 > 0:48:34'What could the property be sold on for?'
0:48:34 > 0:48:38I would recommend putting this on the market
0:48:38 > 0:48:41for £245,000.
0:48:41 > 0:48:45I'd put it on between £235,000 and £240,000.
0:48:45 > 0:48:51'Those valuations would give Barbara a profit of between £49,700
0:48:51 > 0:48:55and £59,700, before costs and expenses.
0:48:57 > 0:48:59Very good. Gosh!
0:48:59 > 0:49:03Um... That's excellent, really. I'm very pleased with that.
0:49:03 > 0:49:06I wasn't quite imagining that
0:49:06 > 0:49:10but you have to look at the worst case scenario
0:49:10 > 0:49:12when you're doing this work.
0:49:12 > 0:49:14That's pretty good.
0:49:14 > 0:49:20# When the moon hits your eye like a big-a pizza pie
0:49:20 > 0:49:21# That's amore... #
0:49:21 > 0:49:27'When she bought the flat, Barbara was clear she had plans to sell it on.
0:49:27 > 0:49:31'Has the Italian-based developer discovered a new love?'
0:49:31 > 0:49:35I quite like it as a pied-a-terre.
0:49:35 > 0:49:38We've been here a couple of weeks now.
0:49:38 > 0:49:42Really, that was just to put a little bit of furniture round,
0:49:42 > 0:49:45make it feel a little bit more comfortable.
0:49:45 > 0:49:49We've had some time we thought we'd spend in London, for a change.
0:49:49 > 0:49:51So... Hm.
0:49:51 > 0:49:55Big question mark now, but I'll keep you posted on that one.
0:49:59 > 0:50:04'We're back in Yeovilton, Somerset, to see how retired estate agent Nick
0:50:04 > 0:50:07'got on with that end terrace.
0:50:07 > 0:50:10'It looks as though it's on a movie set.
0:50:13 > 0:50:18'A war movie set. When the neighbours are one of the busiest military air fields in the UK,
0:50:18 > 0:50:22'this property seemed very pricey at 195,000,
0:50:22 > 0:50:26'but it did come with just over half an acre of land.
0:50:26 > 0:50:30'Nick saw the potential in all that land.
0:50:30 > 0:50:34'He thought the house needed a two-storey extension
0:50:34 > 0:50:36'to make it a livable family home.
0:50:36 > 0:50:40'His knowledge of the market came in very handy.'
0:50:40 > 0:50:45Do you have any idea what the land which you would sell would be worth?
0:50:45 > 0:50:49Yes. It would depend on the timescale.
0:50:49 > 0:50:54At current prices, you're probably talking a little shy of about a million pounds.
0:50:54 > 0:50:56- A million?- Yes.
0:50:56 > 0:50:59- One-zero-zero...- Six noughts. Yeah.
0:50:59 > 0:51:01- Wow!- That's including the cottage.
0:51:01 > 0:51:04'Nick paid £195,000 for the house
0:51:04 > 0:51:07'and straight away applied for planning permission
0:51:07 > 0:51:09'to add a two-storey extension.
0:51:09 > 0:51:14'He had set aside a budget of £35,000 to build the addition
0:51:14 > 0:51:17'and thought it would take him around four months.
0:51:17 > 0:51:22'We've come back just over 18 months later to see if Nick has doubled the size of his cottage.
0:51:22 > 0:51:26'And does he have a field of property or goats?'
0:51:36 > 0:51:40'He definitely got the planning permission for the extension.
0:51:40 > 0:51:44'This is now a substantial family home.'
0:51:44 > 0:51:49# You should come back home back on your own now... #
0:51:49 > 0:51:52Well, tried to keep everything in keeping.
0:51:52 > 0:51:56The original cottage was in a local stone called blue lias.
0:51:56 > 0:51:58So the extension is in blue lias.
0:51:58 > 0:52:01It's a very hard natural stone
0:52:01 > 0:52:05and very much in keeping with the rest of the cottages here.
0:52:05 > 0:52:08Then we've had a different kind of natural stone
0:52:08 > 0:52:11to go round the pathway and parking area.
0:52:11 > 0:52:15We've incorporated some very old historical flagstones
0:52:15 > 0:52:21in the pathway round the house because it's part of the history of the house.
0:52:21 > 0:52:24'Inside, Nick has kept the original layout
0:52:24 > 0:52:27'and most of the old part of the house.
0:52:27 > 0:52:31'The kitchen has been spruced up with new work surfaces.'
0:52:31 > 0:52:34Since you visited the property,
0:52:34 > 0:52:37the extension is, of course, the main addition.
0:52:37 > 0:52:41The whole house has been redecorated. It's being carpeted.
0:52:41 > 0:52:45So there won't be a surface which is as it was.
0:52:45 > 0:52:49It's taken me far longer than I would have liked, 18 months.
0:52:49 > 0:52:51But planning permissions,
0:52:51 > 0:52:56building, it just seems to drag on sometimes, but we're there now.
0:52:57 > 0:53:02This is the new extension, probably my favourite room in the house now.
0:53:02 > 0:53:05Windows on two sides.
0:53:05 > 0:53:10Some lovely patio doors overlooking the garden and countryside beyond.
0:53:10 > 0:53:12It's light, bright, very airy.
0:53:12 > 0:53:17And I think, without much doubt, the feature of the house.
0:53:17 > 0:53:23'This huge living room takes up all of the downstairs in the extension.
0:53:23 > 0:53:27'Upstairs, Nick has added two further bedrooms,
0:53:27 > 0:53:30'one good sized double with built-in storage,
0:53:30 > 0:53:33'and one double with an en suite.
0:53:33 > 0:53:38'But he had to add a small corridor to link the four bedrooms,
0:53:38 > 0:53:42'so the two original bedrooms are now a little smaller.
0:53:42 > 0:53:47'And he has not added a central heating system to the house!'
0:53:47 > 0:53:54What I've done is put in some electric radiators in the bedrooms
0:53:54 > 0:53:59and some fan blowers in the bathroom for instant heat.
0:53:59 > 0:54:05Somebody who buys it may want to go for an oil-based system or an LPG central heating system.
0:54:05 > 0:54:08'Nick bought the place for 195,000
0:54:08 > 0:54:11'and completed the renovation for 45,000,
0:54:11 > 0:54:16'which was £10,000 more than his original estimate.
0:54:16 > 0:54:19'So his total outlay was 240,000.
0:54:19 > 0:54:24'Time to find out what two local property experts think of his work.'
0:54:24 > 0:54:28Very nice. He's done a very good job.
0:54:28 > 0:54:35Turned it from a small cottage into a four-bed house. Should sell well.
0:54:36 > 0:54:40My first impressions are that the property has benefited significantly
0:54:40 > 0:54:43from the large extension to the side.
0:54:43 > 0:54:48However, I do feel that has compromised the bedroom sizes.
0:54:48 > 0:54:53What I would have done is only have three bedrooms rather than the four.
0:54:53 > 0:54:59Having the four bedrooms has led to a compromise in the bedroom sizes
0:54:59 > 0:55:02and made them, perhaps, slightly tight.
0:55:02 > 0:55:08'Not a resoundingly positive reaction from one expert. What do they think the house is now worth?'
0:55:08 > 0:55:15I would estimate the value of this property to be between £255,000 and £265,000.
0:55:15 > 0:55:18You could sell this property on for £275,000.
0:55:18 > 0:55:23'Those valuations would give Nick a profit on the house alone of between
0:55:23 > 0:55:27'£15,000 and £35,000, before costs and expenses.'
0:55:27 > 0:55:31Those figures are pretty much spot-on, what I had in mind.
0:55:31 > 0:55:34'The big opportunity lies in the land.
0:55:34 > 0:55:38'Even as a paddock, you could expect to sell it for around £20,000.
0:55:38 > 0:55:43'Now that Yeovilton has been reclassified to allow building,
0:55:43 > 0:55:47'it could become a building plot with planning permission
0:55:47 > 0:55:49'and its value will change dramatically.'
0:55:49 > 0:55:56As a building plot for four developments, I estimate the value to be between £300,000 and £340,000.
0:55:56 > 0:55:59I think those figures are about right.
0:55:59 > 0:56:04340,000 with four houses would be a good figure to get for it.
0:56:04 > 0:56:08'Nick hasn't applied for planning permission yet
0:56:08 > 0:56:12'but knows what his dream development would be.'
0:56:12 > 0:56:16I think it would be very nice to be able to build four cottages.
0:56:16 > 0:56:20It would be good for the village and give young people something to buy
0:56:20 > 0:56:24in a village environment where they're normally excluded.
0:56:24 > 0:56:26'Does former estate agent Nick
0:56:26 > 0:56:30'think he's likely to buy under the hammer again?'
0:56:30 > 0:56:34One of the things I like about auction is that it's binding.
0:56:34 > 0:56:37You know where you stand.
0:56:37 > 0:56:39You know if you've bought it or if you haven't.
0:56:39 > 0:56:46Rather than by private treaty where you can be buying it for two months then find it's been withdrawn.
0:56:48 > 0:56:51From perfect homes to shrewd investments.
0:56:51 > 0:56:57- Join us next time for more auction action on Homes Under The Hammer. Goodbye.- Goodbye.
0:57:15 > 0:57:18Subtitles by Red Bee Media Ltd
0:57:18 > 0:57:21E-mail subtitling@bbc.co.uk