0:00:02 > 0:00:05- Welcome to Homes Under The Hammer. - Property auctions used to be places
0:00:05 > 0:00:08where just developers and builders used to go, but not any more.
0:00:08 > 0:00:12All sorts of people go to auctions to find what they're looking for.
0:00:12 > 0:00:16Even in difficult times, they're still finding bargains under the hammer.
0:00:41 > 0:00:47Well, even for experienced auction buyers, you need to be sure what you're doing,
0:00:47 > 0:00:51cos auctions can be fairly nerve-racking places to be.
0:00:51 > 0:00:56So did today's buyers keep a cool head and keep it calm? Let's see what they bid for.
0:00:57 > 0:01:01'In Wiltshire, this two-bed bungalow has pipe work so bad,
0:01:01 > 0:01:06'it makes your eyes water.' I've never seen plumbing that is so absolutely diabolical as that.
0:01:07 > 0:01:12'This ground-floor flat in Balham, London, oozes period charm.'
0:01:12 > 0:01:16I was excited outside, but now I'm inside, it's even better!
0:01:17 > 0:01:21'And in this model village in Yorkshire, this three-bed end-of-terrace
0:01:21 > 0:01:27'is pretty much ready to wear.' It's already screaming out very practical family house.
0:01:28 > 0:01:31'All these properties have been sold at auction.
0:01:31 > 0:01:33'We'll find out who bought them and what they paid
0:01:33 > 0:01:37- 'when they went under the hammer.' - Well done. Thank you.
0:01:43 > 0:01:48'I'm in the market town of Corsham near the spa city of Bath.
0:01:48 > 0:01:53'It's a beautiful and historic place near some wonderful and interesting buildings.
0:01:53 > 0:01:56'Let's hope the property I'm here to see is, too.
0:01:56 > 0:01:59'One thing's for sure - it's certainly easy to get to by road.
0:02:00 > 0:02:03# Drive, yeah, drive
0:02:03 > 0:02:05# I'm gonna drive
0:02:05 > 0:02:07# But then you get nowhere
0:02:07 > 0:02:10# Baby, driving
0:02:10 > 0:02:13# Is bringing me down
0:02:14 > 0:02:19- Well, the property I'm here to see is a 1920s bungalow. - CAR HORN BEEPS
0:02:19 > 0:02:24But you know what? The first thing that's wrong with it - it's right by the side of the main A4.
0:02:24 > 0:02:29That used to be the main London road going from Bath all the way to London, so clearly,
0:02:29 > 0:02:34people honking their horns, people thundering past at all hours of the day, it's not ideal.
0:02:34 > 0:02:37The property itself, though, it's not at all too bad.
0:02:37 > 0:02:41Two bedrooms. It's a bungalow. Oh, there goes another truck.
0:02:41 > 0:02:44Let's take a look inside.
0:02:44 > 0:02:48Despite the traffic, you know how I do love a bungalow,
0:02:48 > 0:02:53and this one had an auction guide price of £155,000.
0:02:54 > 0:02:59So one of the first things you're going to do, of course, is fit very good double glazing,
0:02:59 > 0:03:02although that won't get rid of the vibrations from the trucks.
0:03:02 > 0:03:06What have we got? Entrance hall here. Standard layout for a bungalow.
0:03:06 > 0:03:10Two reception rooms, although one will probably end up being a bedroom.
0:03:10 > 0:03:14A few signs of damp, you'll want to check that out. Bathroom and toilet there.
0:03:14 > 0:03:19Second bedroom there and then through to the rear sitting room area.
0:03:19 > 0:03:23Not a bad sized space. Lots of nice views out the windows and light coming in.
0:03:23 > 0:03:29- HE LAUGHS - What on earth...is that?
0:03:31 > 0:03:33Look at this! Look at this plumbing!
0:03:33 > 0:03:35Fantastic!
0:03:35 > 0:03:39Erm, right, well, we're in the lounge here, and as you can see,
0:03:39 > 0:03:43somebody has done this magnificent job of this pipe work on the surface.
0:03:43 > 0:03:47Oh, and for good measure, we've got an electricity cable going through there.
0:03:47 > 0:03:51I've never seen plumbing that is so absolutely diabolical as that.
0:03:51 > 0:03:55Yeah, done by Bodgit and Scarper by appointment to the gullible.
0:03:55 > 0:03:57# Bonkers
0:03:59 > 0:04:05'It really is a bonkers job. And the creative plumbing doesn't stop there.'
0:04:06 > 0:04:12There are more classic chapters from the handbook of how not to do plumbing here in the bathroom.
0:04:12 > 0:04:17This is just an absolute star. You turn the tap on and the water goes into the sink,
0:04:17 > 0:04:19out of the waste pipe here, into the bath.
0:04:21 > 0:04:25It's not a normal way of doing it, but hey, it works.
0:04:28 > 0:04:32'Hm. Yes, and that's an interesting way to position the showerhead.
0:04:32 > 0:04:38'But shoddy plumbing aside, the rooms here are a good size and nice and bright.
0:04:38 > 0:04:40'Of course, the whole place needs modernising
0:04:40 > 0:04:45'and you could think about moving the front bedroom to the back to get away from the noisy traffic.'
0:04:47 > 0:04:50Right at the back of the property is the kitchen.
0:04:50 > 0:04:54Of course, the further away you come from the road, the quieter it becomes,
0:04:54 > 0:04:59so really, when we think about positioning the bedrooms, you want to bear that in mind.
0:04:59 > 0:05:06But the kitchen itself, it's not a bad size space. It could do with a bit of tender loving care, for sure.
0:05:06 > 0:05:09I think knock down that wall there to create an even bigger space.
0:05:09 > 0:05:14The good news, of course, is these lovely views out the window. You certainly can't knock that.
0:05:14 > 0:05:18It's a world away from the bustle out the front.
0:05:18 > 0:05:22A great sized garden with views over the fields into the distance.
0:05:22 > 0:05:24Ah, perfect for summer evenings.
0:05:24 > 0:05:27# Don't sit under the apple tree
0:05:27 > 0:05:29# With anyone else but me
0:05:29 > 0:05:32# Anyone else but me
0:05:32 > 0:05:35# Anyone else but me, no, no, no
0:05:35 > 0:05:40Well, at the rear of the property, there is the potential for an extension.
0:05:40 > 0:05:44The great news is, you've got planning permission already for a two-storey extension,
0:05:44 > 0:05:47a loft conversion and a double garage.
0:05:47 > 0:05:52That's good news. It would increase the floor area of this bungalow quite significantly.
0:05:52 > 0:05:57And good news again - it's at the rear of the property, further away from the road. Is it worth doing?
0:05:57 > 0:06:01You've got to look at the numbers, talk about what it would add to the value of the property
0:06:01 > 0:06:06and then make your decisions. Cos you want to make sure it's worth the fruits of your labours.
0:06:06 > 0:06:09# Don't sit under the apple tree
0:06:09 > 0:06:11# With anyone else but me
0:06:11 > 0:06:15# Till I come marching home
0:06:17 > 0:06:22'We invited a local estate agent along to find out his thoughts on the bungalow,
0:06:22 > 0:06:25'guided at auction at £155,000.'
0:06:27 > 0:06:30It's a nice property. It offers good potential.
0:06:30 > 0:06:33The main road is obviously an issue regarding the property,
0:06:33 > 0:06:37but it certainly could offer someone a good bit of living.
0:06:38 > 0:06:42'Does he think extending at the back would be worthwhile?'
0:06:44 > 0:06:47I would certainly recommend carrying out the extension.
0:06:47 > 0:06:50Looking at the resale values, it would be the better option.
0:06:50 > 0:06:55'What kind of resale value could it achieve if the extension was built?'
0:06:57 > 0:07:01If the planning permission was carried out and the extension was put on the property,
0:07:01 > 0:07:06I'd probably look to market it somewhere in the region of £275,000 to £300,000.
0:07:06 > 0:07:12'If the property was sold on with just the renovation work, how much could it get?'
0:07:13 > 0:07:17If the property was renovated in its current state without the extension,
0:07:17 > 0:07:22I'd look to put it on the market in the region of £200,000 to £210,000.
0:07:22 > 0:07:25'Perhaps rental would be worth considering.'
0:07:26 > 0:07:31In terms of rental values, if the property was renovated but without doing the extension,
0:07:31 > 0:07:34it would be worth in the region of £700 per calendar month.
0:07:36 > 0:07:42Well, on the down side, the road and the plumbing.
0:07:42 > 0:07:47Blimey! But on the plus side, what you've got here is a property that you could do quite a lot with,
0:07:47 > 0:07:50especially with the planning permission that's in place.
0:07:50 > 0:07:53Let's see who fancied it when it went under the hammer.
0:07:53 > 0:07:58Lot 30. Where will you start me? 150, somebody? 150, OK.
0:07:58 > 0:08:01At 150. We'll go in fives to start with. 155.
0:08:01 > 0:08:04160. At 160.
0:08:04 > 0:08:08Now go in twos. 162. 164.
0:08:08 > 0:08:11166. 168.
0:08:11 > 0:08:14170 I'll take. At 168,000. It's here to be sold.
0:08:14 > 0:08:17At £168,000. 170, please, anyone?
0:08:17 > 0:08:21170 I've got. At 171.
0:08:21 > 0:08:23172 to you, sir. 172.
0:08:23 > 0:08:25And 3 may I say? At 172.
0:08:25 > 0:08:28There at £172,000 for the first time.
0:08:28 > 0:08:31£172,000 for the second time.
0:08:31 > 0:08:34- At 172, third and last time, are you done? - HAMMER BANGS
0:08:35 > 0:08:40'And that successful bid of £172,000 came from Roger.
0:08:42 > 0:08:45'He lives locally and is a builder and landscape gardener.
0:08:45 > 0:08:49'So when it comes to renovating this property, he's got a head start.
0:08:49 > 0:08:55'I caught up with him at his new bungalow to find out his plans.'
0:08:55 > 0:08:59- Roger, congratulations.- Thanks. - Nice to meet you. Why did you want to buy the bungalow?
0:08:59 > 0:09:04Basically, I've had a dream of building my own place for a long time.
0:09:04 > 0:09:08This came up for auction and, er,
0:09:08 > 0:09:14well, it's difficult to find a plot, so this is a bit of a compromise, really, cos of the main road.
0:09:14 > 0:09:18But we've got the view out here, so this is why I went for it.
0:09:19 > 0:09:25'Roger's not yet sure whether he'll extend the house or apply to amend the planning permission,
0:09:25 > 0:09:27'knock it down and start again.
0:09:27 > 0:09:32'Whatever he does, he's optimistic about coping with the noisy road out front.'
0:09:32 > 0:09:37Hopefully, all that stuff is going on during the day, so hopefully in the evenings
0:09:37 > 0:09:41when we're spending most time here, and weekends, that garage won't be so much of a problem.
0:09:41 > 0:09:47I'm envisaging, once the house is built, high-roof level garage across there,
0:09:47 > 0:09:50that'll cut out of a lot of the noise at the back.
0:09:50 > 0:09:56- So you've bought it why?- I basically want to get rid of my mortgage,
0:09:56 > 0:10:00so we sold our old property, we're living in rented accommodation,
0:10:00 > 0:10:04and hopefully with the money we spent on this
0:10:04 > 0:10:08and what I've got left in the bank, we should be mortgage free at the end of it.
0:10:08 > 0:10:14- Oh, great! So this will then be, what, your family home?- This will be the family home, yes. We'll move in.
0:10:14 > 0:10:19- Tell me about the family. - Er, my wife, Susan, and two teenage daughters.
0:10:19 > 0:10:25- Avril and Jessica. They've just taken their GCSEs.- Oh, wow.- Yeah.
0:10:25 > 0:10:29They're not too happy about being moved away from where they are at the moment,
0:10:29 > 0:10:33but they'll be driving soon, so they'll be able to get back to see their friends.
0:10:34 > 0:10:38'He wants to turn this property around within a year on a budget of around 100 grand.
0:10:38 > 0:10:41'If he can't get permission to knock it down and rebuild,
0:10:41 > 0:10:47'he hopes to amend the existing extension plans to create a fourth bedroom above the new garage.'
0:10:47 > 0:10:51# If I had your love
0:10:51 > 0:10:55'Everything depends on planning permission. But one way or another,
0:10:55 > 0:11:01'he'll turn this rather needy two-bedroom bungalow into a loved-up four-bedroom family home.'
0:11:02 > 0:11:05# A dream house
0:11:05 > 0:11:08# Just for you
0:11:08 > 0:11:11And once you've spent 12 months doing this up,
0:11:11 > 0:11:15is this it then, or would you sell it on? What's the game plan for the future?
0:11:15 > 0:11:20Well, we're going to move in.
0:11:20 > 0:11:23My two daughters are 16 at the moment.
0:11:23 > 0:11:28Maybe in two or three years' time, they'll be off to university,
0:11:28 > 0:11:34they'll have left home, so we'll then reassess the situation, see if we want to downsize
0:11:34 > 0:11:39and then move on somewhere else, try and find somewhere we really like then.
0:11:39 > 0:11:43- Are you looking forward to it? - Oh, yeah, very much so. Yeah.
0:11:43 > 0:11:46I can't wait to get started, really.
0:11:46 > 0:11:48Good. We wish you all the best with it.
0:11:48 > 0:11:54- Good luck and we look forward to seeing how you get on.- All right. - All the best.- Cheers, then. Thanks.
0:11:54 > 0:12:00So, Roger fulfilling his dream of building his own house on this site.
0:12:00 > 0:12:03Well, I just hope that his family like it when it's done,
0:12:03 > 0:12:08that he manages to get the planning permission and that he sticks to his budget.
0:12:08 > 0:12:12It's going to be tight. You can find out how he gets on later in the show.
0:12:15 > 0:12:19'Balham, London, for so long, the poor relation to Clapham,
0:12:19 > 0:12:23'is now more than standing on its own two feet in desirability stakes.
0:12:23 > 0:12:28'Its London village feel is what attracted wealthy city workers to the area
0:12:28 > 0:12:33'way back in Victorian times, and after a slight dip in popularity,
0:12:33 > 0:12:37'today it's stacked with bars, bistros and fabulous houses.
0:12:37 > 0:12:40'It's safe to say, Balham is back and how!'
0:12:41 > 0:12:47The property I'm here to see is along this line of beautiful, quirky Edwardian terraces.
0:12:47 > 0:12:53And on top of that, you've got this lovely separation from what can be a pretty busy road out there.
0:12:53 > 0:12:57But it's all looking good. And the guide price, well, that looks astounding.
0:12:57 > 0:13:02It's a ground floor of this mid-terrace, all for £190,000.
0:13:02 > 0:13:09Now, I know that's a lot of money in anybody's books, but when you hear the flat above sold a few years ago
0:13:09 > 0:13:12for £423,000,
0:13:12 > 0:13:14to me, that sounds like a bargain.
0:13:14 > 0:13:19'But that was at the height of the property boom and times have really changed.
0:13:19 > 0:13:22'Still, it's less than half of the price of the top-floor unit
0:13:22 > 0:13:24'and it's got the freehold thrown in, as well.
0:13:24 > 0:13:30'Time to see if this ground-floor, two-bed flat matches up to my expectations.'
0:13:30 > 0:13:33Well, you've got a lovely front door there.
0:13:33 > 0:13:37And, ooh, look how exciting it's going to be! Cornicing in the hallway!
0:13:37 > 0:13:40It's already getting good! You can obviously see beyond the decor.
0:13:40 > 0:13:45It's completely dated. But it's fantastic, I love it. Wonderful proportions.
0:13:45 > 0:13:48A really lovely sized lounge in there.
0:13:48 > 0:13:53A fireplace that's not in keeping with the property, so I think I'd like to change that.
0:13:53 > 0:14:00But beautiful square rooms. You've got your second room here. I think this probably once was a bedroom.
0:14:00 > 0:14:03Again, cornicing. A beautiful fire surround here.
0:14:03 > 0:14:08You could possibly get something and install it in there, cos you never know what you'll find behind here.
0:14:08 > 0:14:13You've got a lovely big window with views out onto a decked area.
0:14:13 > 0:14:18I tell you what, I was excited outside, but now I'm inside, it's even better!
0:14:18 > 0:14:22# Better things will surely come my way
0:14:22 > 0:14:27'Two rooms down and so far, so good. This flat needs tons of work,
0:14:27 > 0:14:32'but the bones are here, and it has period features that are very much in fashion at the moment.
0:14:32 > 0:14:38'Moving further down the hall towards the back of the flat, and the bathroom's a tad small.
0:14:38 > 0:14:43'It would need ripping out, although I reckon a reclamation yard would be interested in some of the fittings.
0:14:43 > 0:14:47'But just as it's going swimmingly...
0:14:47 > 0:14:52'..this is the second bedroom. Talk about bijou!'
0:14:52 > 0:14:55That little bedroom there is too, too small.
0:14:55 > 0:14:57You really need to do something about that.
0:14:57 > 0:15:02You can see here, we're at the back of the property, we've got two really nice windows
0:15:02 > 0:15:05leading out to a little decked area, and you've got the kitchen over there.
0:15:05 > 0:15:09Now, my idea is, to really make the most of this property,
0:15:09 > 0:15:12I think you've got to tweak the internal layout,
0:15:12 > 0:15:16maybe more than tweak, because I'm thinking this wall has got to come down.
0:15:16 > 0:15:22I think it's a load-bearing wall, so you may need to get into all sorts of complications, RSJs, et cetera.
0:15:22 > 0:15:27But by taking that out, you could really, really open this space up.
0:15:27 > 0:15:32So you could call this your sort of living/dining area, it comes straight off the kitchen.
0:15:32 > 0:15:35Then you would have a nice, big space to the back.
0:15:35 > 0:15:39You could incorporate lots of this hallway which, at the moment, is wasted space.
0:15:39 > 0:15:45Now, that would allow the front beautiful reception room to be turned into a bedroom.
0:15:45 > 0:15:47As much as I hate to do that, I think it would work,
0:15:47 > 0:15:51because then you would have two good size doubles in this flat
0:15:51 > 0:15:55and I really think, for the sort of money you're paying for a property like this,
0:15:55 > 0:15:58you need to give two double bedrooms, because if you don't do it,
0:15:58 > 0:16:03somebody else is going to come along, do exactly that, and get the money for it.
0:16:03 > 0:16:07'This is a very modern way to make the most of an old-fashioned layout.
0:16:07 > 0:16:11'But before we get all involved with rearranging the inside,
0:16:11 > 0:16:14'we need to check out the bizarre layout outside.'
0:16:16 > 0:16:19Because this isn't just your garden.
0:16:19 > 0:16:25Well, this bit is, this bit isn't, and that bit is. It's a nightmare!
0:16:25 > 0:16:29The problem is, the top floor flat gains access from this door here,
0:16:29 > 0:16:33right in the middle of the garden. You could split this garden here,
0:16:33 > 0:16:39so this part belongs to upstairs, but then they'd be peering through these windows while you're eating
0:16:39 > 0:16:41or getting changed. It's not going to work.
0:16:41 > 0:16:46You are left with two fragments of the garden on opposite sides of the flat.
0:16:46 > 0:16:48There is no easy way around this one,
0:16:48 > 0:16:51and whoever takes this flat on needs to get friendly with upstairs
0:16:51 > 0:16:54and find a solution that's fair and feasible.
0:16:54 > 0:16:57Because at the moment, it's flipping annoying!
0:16:57 > 0:17:01'I'd think of talking to upstairs about buying their patch. If they're not keen,
0:17:01 > 0:17:05'you'll just have to put up with a garden of two halves.
0:17:05 > 0:17:08'At least you could follow the sun throughout the day.
0:17:11 > 0:17:15'We asked a local estate agent for her thoughts on the flat.'
0:17:15 > 0:17:19The space is very good. I think it would work better if it was reconfigured.
0:17:19 > 0:17:21I think it would make it far more saleable and rentable
0:17:21 > 0:17:24if you had two big doubles bedrooms.
0:17:24 > 0:17:26'What about a resale value?'
0:17:26 > 0:17:31If it's reconfigured, then £375,000, £380,000.
0:17:31 > 0:17:37- 'And for rental?' - If you have the two double bedrooms, then easily £1,400 a month.
0:17:37 > 0:17:41I can only assume the guide price was set so low
0:17:41 > 0:17:43to tempt the wary into the auction room.
0:17:43 > 0:17:48This is a cracker of a flat, but in need of some work
0:17:48 > 0:17:53and it's begging for walls to be moved and the whole space improved.
0:17:53 > 0:17:56I can't wait to see who bought this at the auction.
0:18:00 > 0:18:02Right, lot 55.
0:18:02 > 0:18:06Who's here for this? I've got a dead low reserve on this.
0:18:07 > 0:18:11Phone bid, 200. Who wants to go a bit more than that?
0:18:13 > 0:18:15How much?
0:18:15 > 0:18:18I've got 220 in the room. 225?
0:18:20 > 0:18:23If not, it's going at 220, if no-one else has bid.
0:18:23 > 0:18:25First time. 225.
0:18:25 > 0:18:29If you don't get your hands up, you're going to lose it. 225. 230.
0:18:29 > 0:18:34'Prime property like this was never going to go for £225,000.
0:18:34 > 0:18:41'So bidding quickly escalated. We rejoin it at £307,000.'
0:18:41 > 0:18:43307 with you. 308?
0:18:43 > 0:18:45If not, 307.
0:18:45 > 0:18:48308. 309.
0:18:48 > 0:18:50309. 310?
0:18:51 > 0:18:55311? 312?
0:18:55 > 0:18:58Anyone else? 311, first time. Second time.
0:18:58 > 0:19:01- Third and last time, if you're all done. - HAMMER BANGS
0:19:01 > 0:19:04Sold, 311. Well done. It's a good buy, that.
0:19:04 > 0:19:10'The successful bidder was property investor Claude, who bought the flat for £311,000,
0:19:10 > 0:19:14'121 grand over the guide price.'
0:19:16 > 0:19:20Claude, congratulations. That was quite an interesting auction, wasn't it?
0:19:20 > 0:19:23You actually sat back a few times and didn't continue to bid.
0:19:23 > 0:19:28I did. That was part of the policy of trying to buy at auction.
0:19:28 > 0:19:32People never know how much you're going to bid and where you're going to stop.
0:19:32 > 0:19:35So to stop anybody trying to bid you up,
0:19:35 > 0:19:40I sometimes do stop and say, "No, that's enough" and see if anybody else wants to carry on.
0:19:40 > 0:19:44- Ooh, so you were playing a few mind games, were you?- There's always mind games in the auctions.
0:19:44 > 0:19:48- What do you do?- Well, I'm principally a property investor.
0:19:48 > 0:19:52I normally buy properties, refurbish them and then let them out.
0:19:52 > 0:19:57- Is this something that you've enjoyed doing over the years? - Oh, it's terribly rewarding.
0:19:57 > 0:20:01At the end of each day or each year, you can reflect on what you've achieved
0:20:01 > 0:20:05- rather than shuffling paper around. - So did you used to shuffle paper around?
0:20:05 > 0:20:10Oh, I've done a few things in my life. But yes, I did, I'm an accountant by training.
0:20:10 > 0:20:15And I can imagine from being an accountant that you're meticulous with everything.
0:20:15 > 0:20:19- I bet nothing goes unmissed. - I'm pretty good at keeping the records, yes.
0:20:19 > 0:20:23But don't ask what the budget is. I work to a quality standard, not a budget.
0:20:23 > 0:20:27'I'll come back to you on that one, Claude. Bet I can get a budget out of you.
0:20:27 > 0:20:31'He has a portfolio of around 25 properties.
0:20:31 > 0:20:35'This one is really to keep him out of mischief while planning his next renovation.
0:20:35 > 0:20:38'He's not convinced there'll be a lot of profit here
0:20:38 > 0:20:41'and he's probably right given the amount of work.'
0:20:41 > 0:20:44I'm going to gut the whole thing. All the ceilings will come down,
0:20:44 > 0:20:48plaster will come off most of the walls. I shall then be able to tell
0:20:48 > 0:20:51when I've got all the ceilings down how the construction is
0:20:51 > 0:20:54and that will determine whether I'm able to do what I'd like to do,
0:20:54 > 0:21:01which is to knock between the dining area and the second bedroom and open that all up,
0:21:01 > 0:21:07including into the kitchen. At the moment, you've got the kitchen at one end of the flat
0:21:07 > 0:21:12and then reception room at the other end, and that doesn't really work for modern living.
0:21:12 > 0:21:16But if it's going to be difficult for technical reasons,
0:21:16 > 0:21:18then that will be the reason why I don't do it.
0:21:18 > 0:21:22You must have an idea of how much you want to spend on this.
0:21:22 > 0:21:26I've got a ballpark figure. I reckon it's going to cost £40,000 to do it.
0:21:26 > 0:21:29'See? I knew I'd get it out of him.
0:21:29 > 0:21:34'By the time you add up the figures, including over £9,000 in stamp duty,
0:21:34 > 0:21:36'and any other fees or expenses,
0:21:36 > 0:21:41'his profit margin could start to shrink to around £10,000 to £20,000.
0:21:41 > 0:21:47'Claude won't get sentimental about this place and hopes it'll be done and dusted in around four months.
0:21:47 > 0:21:50'But hang on. What's he going to do about the garden?'
0:21:52 > 0:21:55I'm fortunate in that I'm the freeholder of the whole block
0:21:55 > 0:21:58and the upstairs flat is a leaseholder.
0:21:58 > 0:22:06But they're deemed within their lease to have exclusive use of a portion of the garden at the back
0:22:06 > 0:22:08where they've got a table and chairs.
0:22:08 > 0:22:12So can you not swap the parcels of land around
0:22:12 > 0:22:17and say, "There's my back door, I'll have that chunk and upstairs can have that chunk"?
0:22:17 > 0:22:22I think because of where their back door is, it's going to be a bit complicated to do that
0:22:22 > 0:22:27and it just all ends up being more money for the lawyers, frankly.
0:22:27 > 0:22:30I don't honestly think there's a lot one can do
0:22:30 > 0:22:33and I don't think it's going to make a great deal of difference.
0:22:33 > 0:22:36Are you quite excited about turning this place around?
0:22:36 > 0:22:40Yes, I think it's going to be very rewarding. The worse it looks when you buy it,
0:22:40 > 0:22:43the more rewarding it is at the end of the day.
0:22:43 > 0:22:48It also makes it an awful lot easier when you just give the instruction to rip everything out.
0:22:48 > 0:22:50Because when it's in halfway decent order,
0:22:50 > 0:22:56you feel, "Ooh, what have I spent all this money on?"
0:22:56 > 0:23:02- Claude, it's been lovely meet you. Good luck and I hope the refurb goes really well.- Thank you.
0:23:02 > 0:23:07So, it's the condition of the flat itself that will make up Claude's mind
0:23:07 > 0:23:09about what to do with the layout.
0:23:09 > 0:23:13And I am now completely torn!
0:23:13 > 0:23:18You could lose this lovely living room or make a marvellous open-plan area at the back.
0:23:18 > 0:23:23It's going to be a very interesting one. Find out what happens later in the programme.
0:23:24 > 0:23:29'Coming up in South Yorkshire, the icing on the cake for this end terrace is the garden.'
0:23:29 > 0:23:33A real bonus to what is already a really nice little house.
0:23:34 > 0:23:38'Claude's renovation in Balham, London, turned out to be a real can of worms.'
0:23:38 > 0:23:41Every risk I took went bad.
0:23:41 > 0:23:43It was far worse than I ever imagined.
0:23:45 > 0:23:49'But first, in Wiltshire, Roger is dreaming of living the good life.'
0:23:49 > 0:23:53We're going to have ducks and chickens, so it's going to be a nice space.
0:23:57 > 0:24:01'Time now to head back to Corsham where earlier we met Roger.
0:24:01 > 0:24:06'He purchased this two-bedroom bungalow at auction for £172,000.
0:24:07 > 0:24:12'It was a bit noisy as it was close to the main road, but that didn't stop Roger.
0:24:12 > 0:24:16'He lives locally and is a builder and landscape gardener by trade,
0:24:16 > 0:24:20'so definitely the right man for the job. But why did he buy this place?'
0:24:22 > 0:24:26I've had a dream of building my own place for a long time.
0:24:26 > 0:24:31This came up for auction and, well, it's difficult to find a plot
0:24:31 > 0:24:35so this is a bit of a compromise, really, because of the main road.
0:24:35 > 0:24:40But we've got the view out here, so this is what I want it for.
0:24:41 > 0:24:46'Roger wanted to turn this property round within a year and on a budget of around 100 grand.
0:24:46 > 0:24:50'If he couldn't get planning permission to knock down and rebuild,
0:24:50 > 0:24:55'he hoped to amend the existing extension plans to create a fourth bedroom above the new garage.
0:24:55 > 0:25:02'So, nearly 11 months later, has Roger managed to fix up this tired and rather quirky two-bed bungalow
0:25:02 > 0:25:06'and turn it into a four-bedroom family home?'
0:25:06 > 0:25:11# And I will try to fix you
0:25:14 > 0:25:17'Roger's kept some of the existing building,
0:25:17 > 0:25:24'but already from the front, you can see it's much bigger. What's it like inside?
0:25:28 > 0:25:30'What a difference.
0:25:30 > 0:25:36'Compared to before, the new open-plan kitchen, dining and living room looks vast!
0:25:38 > 0:25:40'It looks more like a complete rebuild,
0:25:40 > 0:25:44'as Roger's ended up knocking down most of the original building.'
0:25:51 > 0:25:54This is the new extension.
0:25:54 > 0:25:57This is a kitchen/diner.
0:25:57 > 0:26:01We'll have a sofa over here,
0:26:01 > 0:26:03table and dining chairs where you're standing,
0:26:03 > 0:26:09and over here is the kitchen. I think we'll probably be spending most of our time in here.
0:26:09 > 0:26:13It's a nice room. It's got a nice view over here.
0:26:13 > 0:26:16I'm very pleased with how this room's turned out.
0:26:17 > 0:26:23'Roger has clearly been very busy. Double-storey extension at the rear, double garage, new roof,
0:26:23 > 0:26:28'new windows, oh, and not forgetting that disastrous plumbing.
0:26:28 > 0:26:31'Glad to see that's been sorted.
0:26:31 > 0:26:34'Roger really is a master builder.'
0:26:34 > 0:26:37# So, friends, do you know
0:26:37 > 0:26:40# The master builder?
0:26:40 > 0:26:44This is the master bedroom. We've got an en suite here.
0:26:44 > 0:26:50A dressing room over there. Quite big. Get a dressing table in there.
0:26:50 > 0:26:55Then we've got double doors, Juliet balcony looking out over this view.
0:26:55 > 0:26:58Erm, it's very nice.
0:27:01 > 0:27:05'The garden looks great, but it seems a little bigger than I remember.'
0:27:06 > 0:27:09We bought a bit of land at the back.
0:27:09 > 0:27:14It's made the garden twice as big as it would've been if we hadn't bought the land.
0:27:14 > 0:27:18We've planted wild flowers on one side of it, we'll have ducks and chickens there.
0:27:18 > 0:27:24So it's going to be a nice space. And, of course, it extends into the field, as well.
0:27:24 > 0:27:26'A huge amount of work has gone on here,
0:27:26 > 0:27:29'but there's still quite a lot left to do.'
0:27:29 > 0:27:35Upstairs, it's mainly decoration. There's the family bathroom to be tiled
0:27:35 > 0:27:38and the en suite to be done.
0:27:38 > 0:27:41After that, it's mostly painting.
0:27:41 > 0:27:44And then downstairs, a bit more plastering to do,
0:27:44 > 0:27:49the utility room to sort out and, obviously, the kitchen to be fitted.
0:27:49 > 0:27:54On the original planning permission, there was just an empty roof space above the garage,
0:27:54 > 0:27:57so we applied to put a bedroom over the top,
0:27:57 > 0:28:01which meant raising the roof line by about two foot.
0:28:01 > 0:28:05That went through OK, actually. We got permission to put the bedroom in,
0:28:05 > 0:28:09which has turned out to be one of the best bedrooms in the house, really.
0:28:09 > 0:28:12'Roger's daughters weren't so keen on the move before.
0:28:12 > 0:28:15'Have they changed their minds now it's nearly finished?'
0:28:15 > 0:28:20Yeah, they're coming round to the idea of living here. They like the rooms that they've got,
0:28:20 > 0:28:26they like the space, the big garden. I think they're looking forward to having lots of parties here.
0:28:26 > 0:28:32'11 months have passed. Will Roger manage to finish within the year, as planned?'
0:28:32 > 0:28:34Well, we are going to move in in about a month.
0:28:34 > 0:28:40I mean, it doesn't look like it's ready, but we are going to get enough ready for us to move in.
0:28:40 > 0:28:43We'll have a kitchen ready, get one of the bathrooms ready.
0:28:43 > 0:28:49The bedrooms only need decoration and the rest of it I'll do when we've moved in.
0:28:49 > 0:28:54'What about the budget? Did Roger stick to £100,000?'
0:28:54 > 0:29:01We have gone over budget. We've upgraded various things and, of course, buying the land at the back
0:29:01 > 0:29:05cost more than we were planning to do.
0:29:05 > 0:29:10So I think, on the build itself, we've gone about £30,000 over budget.
0:29:10 > 0:29:16'Roger's spend of 130 grand means he's not quite mortgage-free, as he'd hoped,
0:29:16 > 0:29:19'but he is now borrowing less than before.'
0:29:20 > 0:29:23'Including his purchase price of £172,000,
0:29:23 > 0:29:27'Roger's outlay to date is £302,000.
0:29:27 > 0:29:30'But he reckons there could be another £30,000 of work still to be done,
0:29:30 > 0:29:33'including fittings and furnishings.
0:29:33 > 0:29:37'Let's see what two local estate agents think of his work.'
0:29:39 > 0:29:42It's different from what I expected. He's changed the plans
0:29:42 > 0:29:45from the original plans that he had in place,
0:29:45 > 0:29:47but he's done a nice job. He's got all bedrooms upstairs
0:29:47 > 0:29:51- and there's some really good size accommodation.- He's transformed it
0:29:51 > 0:29:54from what it was, as a small detached bungalow,
0:29:54 > 0:29:56into what is now a sizeable family house.
0:29:56 > 0:30:00'What rental income could this place achieve?'
0:30:00 > 0:30:05It's at the top end of the market, so in the region of £1,250 per calendar month.
0:30:05 > 0:30:10We should achieve in the region of £1,200 per calendar month without too much difficulty, maybe £1,250.
0:30:10 > 0:30:14Well, that sounds like a good income, actually.
0:30:14 > 0:30:17If we were going to rent it, I think I'd be happy with that.
0:30:17 > 0:30:20'And resale value?'
0:30:20 > 0:30:25I would recommend a guide price in the region of £375,000 for the property.
0:30:25 > 0:30:29I would recommend an asking price in the region of £350,000 to £375,000.
0:30:29 > 0:30:33Well, my total spend at the end of it is going to be 330,
0:30:33 > 0:30:36so we have made a profit on it.
0:30:36 > 0:30:39Probably would've liked a little bit more,
0:30:39 > 0:30:42but house prices as they are at the moment, probably that's not bad.
0:30:43 > 0:30:49'That would be a potential pre-tax profit of between £20,000 and £45,000
0:30:49 > 0:30:52'minus the usual taxes and expenses.
0:30:52 > 0:30:55'Does Roger think his family will be happy living here?'
0:30:55 > 0:30:59Yeah, I think they're going to enjoy it here eventually.
0:30:59 > 0:31:03It's got plenty of space, plenty of light, we've got a big garden,
0:31:03 > 0:31:07so, yeah, I think we're going to settle in here quite nicely.
0:31:11 > 0:31:17'Doncaster, or Donny to those in the know, was once a coal-mining centre and industrial powerhouse.
0:31:17 > 0:31:22'More recently, Donny has been playing the regeneration game and winning,
0:31:22 > 0:31:28'with a new riverside college campus and plans to build lots of new homes.'
0:31:28 > 0:31:31Well, the property I'm here to see is in Woodlands.
0:31:31 > 0:31:37That's a model village about three miles north of Doncaster centre.
0:31:37 > 0:31:43Well, when I say model village, I don't mean small houses and train sets and windmills,
0:31:43 > 0:31:47I actually mean it was built in the early 20th century
0:31:47 > 0:31:50to house the workers of the local colliery.
0:31:50 > 0:31:56And what a great space it is, built around this large area of grassland and trees.
0:31:56 > 0:32:00The houses themselves, really pretty, on the edge, lots of open countryside.
0:32:00 > 0:32:04This is the one I'm here to see, right on the end. It had a guide price of 50,000 to 60,000 quid,
0:32:04 > 0:32:09which for a three-bed sounds good, especially in this kind of place.
0:32:09 > 0:32:14'At a time when most coal miners' houses were traditional terraces,
0:32:14 > 0:32:16'this former coal miners' estate is charming.
0:32:16 > 0:32:21'Backing onto woodland and with a large garden at the rear, it's impressive now.
0:32:21 > 0:32:25'In the 1900s, this place must have felt like paradise.'
0:32:25 > 0:32:29# Oh, think twice
0:32:29 > 0:32:33# It's just another day for you
0:32:33 > 0:32:36# You and me in paradise
0:32:38 > 0:32:43So what have we got? A little porch area there and then into your front living room.
0:32:43 > 0:32:47Now, bit unusual, this, because it's separated this way
0:32:47 > 0:32:51as opposed to this way, that you might expect and is more normal.
0:32:51 > 0:32:54But I quite like that, because you get a double aspect,
0:32:54 > 0:32:59you get a view over the green that way and out that way, more light coming in, which is really good.
0:32:59 > 0:33:03The only thing is, they've put these very dark cabinets in and bookshelves,
0:33:03 > 0:33:06which don't really help to lift the light in the room.
0:33:06 > 0:33:11But the old quarry tile floor and it's a good size space, so all in all, a bit of a tick for that.
0:33:11 > 0:33:15And then through into your kitchen. Bit of a surprise here.
0:33:15 > 0:33:18Not bad condition. It needs some units, a cooker, et cetera,
0:33:18 > 0:33:23but I think a bit of cleaning up in here and you could actually make it quite presentable.
0:33:23 > 0:33:27Deal with the walls somehow. A bit of a wedding cake scenario going on there.
0:33:27 > 0:33:32But more practicality as you come through the kitchen. At the back, you've got a downstairs loo
0:33:32 > 0:33:38and a utility room. So all in all, it's already screaming out very practical family house.
0:33:38 > 0:33:42# It runs in the family
0:33:42 > 0:33:44# All the things we are
0:33:44 > 0:33:50'Up the slightly oddly-positioned stairs and there are three double bedrooms suitable for Goldilocks.
0:33:50 > 0:33:55'One a tad small, one just right and the other almost too big.
0:33:55 > 0:34:00'But I have a cunning plan. You can only get to the bathroom via this large bedroom.
0:34:00 > 0:34:05'I'd suggest creating a corridor, allowing the bathroom to be more accessible.
0:34:05 > 0:34:10'The cherry on the cake is the loft. It's currently used as an additional bedroom
0:34:10 > 0:34:14'but couldn't be marketed as such unless proper stairs were put in.
0:34:14 > 0:34:18'And that would put a big dent in your budget.'
0:34:18 > 0:34:22Well, at the rear of the property, you've got this little bit of garden and this access road,
0:34:22 > 0:34:28which is actually quite convenient because, good news, this is your garage.
0:34:28 > 0:34:32It's a double garage. And also you've got this little storage area there.
0:34:32 > 0:34:37So, pretty good. But that's not all. Follow me. This is fantastic!
0:34:37 > 0:34:42This is almost like a hidden garden. It's clearly not directly attached to the property,
0:34:42 > 0:34:46but you come down this, heading towards all this woodland in the background,
0:34:46 > 0:34:52and you've got this lovely, lovely area of, well, garden space, whatever you wanted it to be.
0:34:52 > 0:34:56A real bonus to what is already a really nice little house.
0:34:57 > 0:35:03'This house is full of surprises, but none so big as the one lurking in the legal pack.'
0:35:05 > 0:35:11Now, the legal pack states that the property was bought around three months ago
0:35:11 > 0:35:15by somebody who's decided to sell it on. Anything to worry about with that?
0:35:15 > 0:35:20Well, actually, yes, there is, because mortgage companies do not like properties
0:35:20 > 0:35:23that have been owned by somebody for less than six months.
0:35:23 > 0:35:26It's to stop unscrupulous investors basically buying property
0:35:26 > 0:35:29and then flipping it on at an inflated profit.
0:35:29 > 0:35:34So what we learn from that is that the person who bought it probably had to have cash to do so,
0:35:34 > 0:35:39and if you weren't prepared for it, you could score yourself a bit of an own goal.
0:35:39 > 0:35:45'Despite that rather sticky stipulation, the house has a lot going for it,
0:35:45 > 0:35:50'especially for its £50,000 to £60,000 guide price.
0:35:50 > 0:35:54'We invited a local estate agent to give us his thoughts.'
0:35:56 > 0:35:59The first impressions are it's a good purchase.
0:35:59 > 0:36:03It's got lots of potential. It's not a bad basic shell.
0:36:03 > 0:36:05It just needs modernisation.
0:36:06 > 0:36:11'Is the resale market a good option for this property once renovated?'
0:36:11 > 0:36:17If the property is done up properly, then I would put it on the market for around the £90,000 mark.
0:36:17 > 0:36:20'What about the rental returns?'
0:36:20 > 0:36:25Per calendar month, the rent I would expect would be £400 to £425.
0:36:26 > 0:36:30So, a model house in a model village?
0:36:30 > 0:36:33Well, almost. Not really that much work to do
0:36:33 > 0:36:36to turn this into a lovely family home.
0:36:36 > 0:36:39And you certainly can't complain about the setting.
0:36:39 > 0:36:42Let's see who snapped it up when it went under the hammer.
0:36:46 > 0:36:49Guided at 50,000 to 60,000. Where are you going to be for this one?
0:36:49 > 0:36:52£40,000 the bid. Start at 40,000.
0:36:52 > 0:36:5742. 44. 46. 48. 50,000.
0:36:57 > 0:37:00At 51. I have 51. 52.
0:37:00 > 0:37:0353. 54. 55 for you?
0:37:03 > 0:37:05New bidder, 55,000. 56.
0:37:05 > 0:37:0757. 58.
0:37:07 > 0:37:0959,000. 60 for you?
0:37:09 > 0:37:13£60,000 I'm bid. 61,000 there.
0:37:13 > 0:37:16And 62 if you're going. 63.
0:37:16 > 0:37:2164. 65. 66.
0:37:21 > 0:37:2367. 68.
0:37:23 > 0:37:2669 for you? 500 if you like.
0:37:26 > 0:37:28Is it 500?
0:37:28 > 0:37:31At £68,000.
0:37:31 > 0:37:34For the first time. Second. Third and last time at £68,000.
0:37:34 > 0:37:37- Any more bids? - HAMMER BANGS - Well done. Thank you.
0:37:38 > 0:37:42# Young girl
0:37:42 > 0:37:45# Get out of my mind
0:37:45 > 0:37:50'Successful with her £68,000 bid was 26-year-old Hannah.
0:37:50 > 0:37:56'She may seem relatively young to be bidding at the auction, but appearances can be deceptive.
0:37:56 > 0:38:00'She's a seasoned property developer who knows how to spot a diamond in the rough.'
0:38:00 > 0:38:05Hannah, lovely to meet you. Congratulations. Tell me why you wanted to buy this place?
0:38:05 > 0:38:12- Well, I know quite a bit about the area. I've already got two properties within the same square.- Oh, right.
0:38:12 > 0:38:15They rent out really well. They're nice people in the area
0:38:15 > 0:38:18and the houses themselves dress up really nice.
0:38:18 > 0:38:24It's a lovely little spot, actually. It's almost hidden away there. It's this oasis of, well, loveliness.
0:38:24 > 0:38:28- Yep.- Right. So tell me a bit more about you.- Well, I'm a full-time property developer.
0:38:28 > 0:38:31I started when I was 18, bought my first property,
0:38:31 > 0:38:37and then just did one at a time as I was working full-time, as well.
0:38:37 > 0:38:41I did a degree in theatre, film and television.
0:38:41 > 0:38:47- Wow!- About halfway through, decided it was property I wanted to get into.
0:38:47 > 0:38:52- I got the bug.- Right. - And then... So I was working... When I came out of university
0:38:52 > 0:38:56I started working as an estate agent to get a bit of background knowledge.
0:38:56 > 0:39:01When I left the estate agency, bought a property with a view to doing it up and selling it.
0:39:01 > 0:39:05Erm, which I did. And it worked quite well, so...
0:39:07 > 0:39:11'It certainly has worked well because Hannah now owns nine properties.
0:39:11 > 0:39:14'And with successful property developing parents
0:39:14 > 0:39:19'to set her off on the right track from a young age, she's had great mentors.
0:39:19 > 0:39:24'At the same time, Hannah did fall foul of that issue that was hidden in the legal pack.'
0:39:24 > 0:39:29I had a bit of a problem with this property because I wasn't aware that the majority of mortgage lenders
0:39:29 > 0:39:34won't lend on a property that's only been owned by the previous owner
0:39:34 > 0:39:37for less than six months.
0:39:37 > 0:39:44- So what did they say? - No. I had the finance in place before I went to the auction. No problem.
0:39:44 > 0:39:47Paid the ten percent deposit on the day and signed the contract
0:39:47 > 0:39:53to complete within 28 days, which is not normally a problem.
0:39:53 > 0:39:58I then went back to my mortgage broker, and he tried finding different lenders,
0:39:58 > 0:40:01just none of them would even look at it.
0:40:01 > 0:40:04But because I'd signed the contract to exchange within 28 days,
0:40:04 > 0:40:09erm, there was no way round it. They wouldn't extend their completion date.
0:40:09 > 0:40:13Erm, and the financial implications of not completing
0:40:13 > 0:40:20on the date that you've signed the contract for is insane. Quite frightening, really.
0:40:20 > 0:40:23# You make me scared.
0:40:24 > 0:40:27- # That's what you do - 'It's a scary situation to face.
0:40:27 > 0:40:33'If Hannah had failed to complete, she would have forfeited her £6,800 deposit,
0:40:33 > 0:40:38'incurred costs and would have been made to make up the difference if the house then sold for less.
0:40:42 > 0:40:47'Fortunately she was able to secure short-term finance from a private investor,
0:40:47 > 0:40:53'at a cost of £5,000. And that's eaten into her original 12 grand budget for the work.'
0:40:54 > 0:40:59'But with £7,000 to play with, Hannah's got plans.'
0:40:59 > 0:41:02- So what are you going to do to it? - Well, just tidy it up, really.
0:41:02 > 0:41:05There isn't a great deal that needs doing to it.
0:41:05 > 0:41:10I want to plaster, get rid of all the Artex. New carpets. Lick of paint throughout.
0:41:10 > 0:41:15The tiles, I'm not keen on the tiles, so I'll make them a bit more neutral.
0:41:15 > 0:41:20- And how quick to get it sorted out? - Hopefully just a couple of months.
0:41:20 > 0:41:24- And then rent it out or sell it? - Hopefully rent it. That's the plan.
0:41:24 > 0:41:28- What kind of rent are you expecting? - I know I can rent the properties out for £575,
0:41:28 > 0:41:31but most estate agents would say less,
0:41:31 > 0:41:35but because of the condition of the properties when they're being rented out,
0:41:35 > 0:41:39people are happy to pay a bit more for a better quality property.
0:41:39 > 0:41:43Well, it's lovely to meet you. Congratulations. And we can't wait to see how you get on.
0:41:43 > 0:41:45- Thank you.- Take care.- Thanks.
0:41:45 > 0:41:50Well, it just goes to show that success doesn't always come with age.
0:41:50 > 0:41:56Hannah's worked really hard and put lots of enthusiasm into developing that property portfolio.
0:41:56 > 0:42:00But it also goes to show that even with experience you can get caught out.
0:42:00 > 0:42:04That mortgage issue was a really nasty one and a lesson to us all.
0:42:04 > 0:42:10Still, how is she going to get on sorting this place out? You can find out later in the show.
0:42:13 > 0:42:16Once you've bought the property, the hard work really starts
0:42:16 > 0:42:19and you need to be prepared for a few surprises along the way.
0:42:19 > 0:42:22So has it all gone smoothly for our buyers?
0:42:22 > 0:42:26Or have they unearthed all sorts of problems? Time to find out.
0:42:28 > 0:42:33'Back now to Balham in South London to catch up with veteran property developer Claude.
0:42:33 > 0:42:37'He purchased the ground-floor flat of this attractive mid-terrace
0:42:37 > 0:42:42'for £311,000 at auction, and hoped to reap the benefits.'
0:42:45 > 0:42:49- Are you excited about turning this place around?- Yes. I think it's going to be very rewarding.
0:42:49 > 0:42:54The worse it looks when you buy a property, the more rewarding it is at the end of the day.
0:42:54 > 0:42:57'Famous last words or voice of experience?
0:42:57 > 0:43:02'Claude planned to turn this place around for £40,000, in three to four months.
0:43:02 > 0:43:06'Seven and a half months later, we're back.
0:43:21 > 0:43:26'The flat looks absolutely stunning, clean and contemporary.
0:43:26 > 0:43:29'And with the small second bedroom now the kitchen,
0:43:29 > 0:43:34'the back of the property is now an open-plan kitchen, dining and living area.'
0:43:36 > 0:43:42Well, here, what we've done is we've removed the wall here, which was the second bedroom,
0:43:42 > 0:43:48and converted this into a kitchen area, and opened it all up into this reception room,
0:43:48 > 0:43:55so you've got a kitchen leading into a reception room which works so much better today in modern life.
0:43:55 > 0:43:58And has the benefit of the French doors looking straight out onto the garden.
0:43:58 > 0:44:03It is a slightly small reception room relative to the size of the bedrooms.
0:44:03 > 0:44:05But that was a compromise I had to live with.
0:44:05 > 0:44:10'Speaking of the bedrooms, the former master bedroom has had a complete makeover.
0:44:10 > 0:44:14'And what was once the damp and dingy lounge at the front of the building,
0:44:14 > 0:44:17'is now the new master bedroom.
0:44:19 > 0:44:23'The back garden has been beautifully landscaped.
0:44:23 > 0:44:27'It's still divided between upper and ground-floor flats, as before,
0:44:27 > 0:44:31'but the ground floor access through the new French windows is a real bonus.
0:44:33 > 0:44:39'Claude also made the most of the outside space at the front of the flat by creating off-street parking.
0:44:39 > 0:44:42'I think this will be a huge selling point.
0:44:42 > 0:44:47'The bright idea was inspired by solving one of many issues this property had in store.'
0:44:47 > 0:44:50I had a major problem with the water mains.
0:44:50 > 0:44:54We had to completely replace that so I had to dig the front garden up.
0:44:54 > 0:44:59And I thought, "Well, if I'm going to spend money ripping up this grass and putting a trench in,
0:44:59 > 0:45:05"why not convert it into off-street parking, because that's a real boon round here?"
0:45:05 > 0:45:11And I consulted the council, got consent, and they'll be dropping the kerb in the next month or two.
0:45:11 > 0:45:14So I created an off-street parking area.
0:45:14 > 0:45:19'And a fabulous and practical creation it is, too. But not everything went as smoothly.
0:45:19 > 0:45:24'Unfortunately, Claude was plagued with problems throughout the renovation.'
0:45:24 > 0:45:28When I first bought it, I knew that it was in bad condition.
0:45:28 > 0:45:34That was a given. And I took a few risks, but I have to confess, every risk I took went bad.
0:45:34 > 0:45:37It was far worse than I ever imagined.
0:45:37 > 0:45:40There was wet rot, dry rot,
0:45:40 > 0:45:45penetrating damp, rising damp, even rats under the floor.
0:45:45 > 0:45:48It became totally apparent that the floor had to go,
0:45:48 > 0:45:53because everything, all the timbers were rotten underneath, particularly where they met the outside.
0:45:53 > 0:45:58Virtually all the internal walls had to be completely rebuilt.
0:45:58 > 0:46:02'Removing floors and walls is a challenge at the best of times.
0:46:02 > 0:46:07'When buying a ground-floor property you need to be sure the flats above are not affected.'
0:46:07 > 0:46:11There was one point when you could literally stand at the front door
0:46:11 > 0:46:16and look right the way through to the back of the property, as every single wall had been removed,
0:46:16 > 0:46:21and we had a forest of acrows, which are these props that prop up all the floors above.
0:46:21 > 0:46:25'Of course, knocking things down had a knock-on effect on the budget.'
0:46:25 > 0:46:29Well, they say in the military, the first casualty of war is the plan.
0:46:29 > 0:46:32And frankly, on this project, the first casualty was the budget.
0:46:32 > 0:46:37That went in the first week when I realised that we were going to have to rebuild all the walls
0:46:37 > 0:46:42and rebuild the entire floor, because that just wasn't in the budget.
0:46:42 > 0:46:46A certain amount was, but not all of it, certainly.
0:46:46 > 0:46:52And I didn't have a breakdown of the budget, it was just... You just kept going.
0:46:52 > 0:46:58There isn't an option, so there's no point in analysing the budget in microscopic detail,
0:46:58 > 0:47:02because it will only depress you, and that does you no good at all.
0:47:02 > 0:47:08'Claude did, in fact, spend £53,000 here, 13 grand over his original estimate.
0:47:08 > 0:47:13'Even so, his costs were reduced as he did much of the work himself.
0:47:13 > 0:47:19'Add that to the £311,000 purchase price, plus stamp duty of just over nine grand,
0:47:19 > 0:47:26'and you're talking a total outlay just short of £375,000 plus fees and expenses.
0:47:26 > 0:47:31'Was it money well-spent? Let's see what two local estate agents think.'
0:47:31 > 0:47:33The owner has done an amazing job here.
0:47:33 > 0:47:36I like the way they've reconfigured the property
0:47:36 > 0:47:39because you've then got two very good double bedrooms.
0:47:39 > 0:47:42Off-street parking is inspired in this part of London.
0:47:42 > 0:47:45And I'm sure it will be planted up and look fantastic
0:47:45 > 0:47:48and that will give the front room more privacy, as well.
0:47:48 > 0:47:51First impressions walking round, it's incredibly spacious.
0:47:51 > 0:47:54Very light, in very good condition,
0:47:54 > 0:47:57and presented to a very high standard.
0:47:57 > 0:48:00'High praise for the finish, but what about the finances?
0:48:00 > 0:48:03'Claude often does properties to rent,
0:48:03 > 0:48:07'but with his higher than planned spend here, would renting be worthwhile?'
0:48:08 > 0:48:13Renting this property out, I would recommend between £1,700 and £1,800 per calendar month.
0:48:13 > 0:48:17£1,650 to £1,700 per calendar month.
0:48:17 > 0:48:20They're on a par with what I think they should be,
0:48:20 > 0:48:27but the yield is going to be around four percent. Quite frankly, it's not a great rental investment.
0:48:27 > 0:48:33'So with Claude turning his attention to selling, what kind of price should he be expecting?'
0:48:33 > 0:48:37We would be putting it on the market in the region of £430,000, £435,000,
0:48:37 > 0:48:41and expect to achieve well over £420,000.
0:48:41 > 0:48:48Putting it on the market, I would suggest the values would be between £420,000 and £430,000.
0:48:48 > 0:48:51That's pretty well on a par with what my expectations are.
0:48:51 > 0:48:55I know it's a lot higher than perhaps it was at the beginning.
0:48:55 > 0:49:01But I was pretty confident that, with the standard of finish that I normally do,
0:49:01 > 0:49:06that that was going to be the in-price as long as the market was relatively stable.
0:49:06 > 0:49:10'Resale does seem to be the way to go here, and in fact,
0:49:10 > 0:49:15'since filming, the flat's now under offer at £435,000.
0:49:15 > 0:49:19'If all goes well, that will give Claude a pre-tax profit
0:49:19 > 0:49:23'of around 60 grand, minus selling expenses.
0:49:23 > 0:49:25'But does this make up for the problems he had?'
0:49:25 > 0:49:29With the benefit of hindsight, would I have bought this property?
0:49:29 > 0:49:34I'm not entirely sure, but you have to take the rough with the smooth,
0:49:34 > 0:49:38and I think I'm coming out of it all right.
0:49:42 > 0:49:45'We're back in Woodlands near Doncaster.
0:49:45 > 0:49:50'Here property developer Hannah purchased this former Coal Board house at the auction
0:49:50 > 0:49:56'for the fine price of £68,000. But with a technicality hiding in the legal pack,
0:49:56 > 0:50:00'she came up against her first problem when it came to the finances.'
0:50:01 > 0:50:04I had a bit of a problem with the property
0:50:04 > 0:50:08because I wasn't aware that the majority of mortgage lenders won't lend on a property
0:50:08 > 0:50:12that's only been owned by the previous owner
0:50:12 > 0:50:17- for less than six months. - So what did they say?- No.
0:50:17 > 0:50:20'But Hannah wasn't taking no for an answer.
0:50:20 > 0:50:25'She managed to get help from a private investor at a cost of £5,000.
0:50:25 > 0:50:28'Her plan was to renovate the house fully within a couple of months
0:50:28 > 0:50:33'on a budget of around £7,000, with a view to renting it out.
0:50:33 > 0:50:37'Four months later we're back to see if she's been plagued by problems
0:50:37 > 0:50:40'or saved by an unexpected solution.'
0:50:40 > 0:50:47Since you last came, I was approached by some previous tenants of my parents.
0:50:47 > 0:50:52And they were looking for another property that was a bit bigger than the one they were living in,
0:50:52 > 0:50:58in a different area, and this was the only one I had available at that moment in time.
0:50:58 > 0:51:03So I showed them the property just to engage their thoughts
0:51:03 > 0:51:08with a view to renovating it and then being able to move in at a later date.
0:51:08 > 0:51:13But when I showed them round the property, they absolutely loved it and decided to take it on as it is,
0:51:13 > 0:51:19and they would do any work that needed doing themselves. So it's currently let out.
0:51:19 > 0:51:23'So Hannah rented the house out to local couple Lisa and Mark,
0:51:23 > 0:51:28'who were happy to turn this house into their home, and at their own expense.
0:51:33 > 0:51:38'The main jobs to do here were re-flooring and re-carpeting throughout,
0:51:38 > 0:51:41'as well as dealing with the decor.
0:51:41 > 0:51:44'After clearing and cleaning the property from top to bottom,
0:51:44 > 0:51:50'Mark and Lisa put down laminate floors and carpets and got their paint brushes out.
0:51:50 > 0:51:53'But why were they happy to do this in a house they don't own?'
0:51:53 > 0:51:59If you are a tenant, and you're renting somewhere, I think it's nice for the tenant and the landlord
0:51:59 > 0:52:03that both have a bit of input and keep the property nice.
0:52:03 > 0:52:08A lot of properties, when you're renting, I think, are done up to how the owner wants it.
0:52:08 > 0:52:12But they said we could do what we want, so that's great.
0:52:12 > 0:52:16'So this way Lisa and Mark get to live where they want to
0:52:16 > 0:52:20'and make it home in a way most tenants can't.
0:52:20 > 0:52:24'Lisa has two children who visit regularly and two that live at home.
0:52:24 > 0:52:27'The layout of the upstairs, which was slightly odd
0:52:27 > 0:52:33'with the bathroom and loft only accessible from one room, actually suits them down to the ground.'
0:52:33 > 0:52:36Well, this is the children's bedroom.
0:52:36 > 0:52:39As you can see, this is the bathroom
0:52:39 > 0:52:43off the children's bedroom, which is great because this isn't our room
0:52:43 > 0:52:46so we're in and out and we know what the kids are doing.
0:52:46 > 0:52:50Up there is the attic, which the children use as a playroom.
0:52:50 > 0:52:53'And it's not the only place for play.
0:52:53 > 0:52:56'The additional garden behind the garage was a fantastic space
0:52:56 > 0:53:00'which Mark and Lisa have already started making the most of.
0:53:00 > 0:53:03'Anyone for a dip?'
0:53:03 > 0:53:09Right, this outside area is ideal for us
0:53:09 > 0:53:13because what we are going to do is clear in between the shrubs and all the plants,
0:53:13 > 0:53:17replant, look at what's here, and try and build on it.
0:53:17 > 0:53:20The other thing that we're going to do is put a bar in here,
0:53:20 > 0:53:24and there will be a seating area and sun loungers and that type of thing.
0:53:24 > 0:53:28So it's ideal for the kids and that, and myself and whatnot.
0:53:28 > 0:53:32It's a space away from... Even though we've got space at the front,
0:53:32 > 0:53:35it's further developed space that we could utilise again.
0:53:35 > 0:53:38So I'm just really happy with it. It's fantastic.
0:53:39 > 0:53:44'Lisa and Mark are clearly very happy here. But what does Hannah think about what they've done?'
0:53:44 > 0:53:50I think they've got it looking really nice. They're ideal tenants, they always pay their rent on time,
0:53:50 > 0:53:53they look after the place, they let me know if there's any problems,
0:53:53 > 0:53:58and also because I haven't renovated the property myself and I haven't lived in the property,
0:53:58 > 0:54:01things came up, like the boiler wasn't functioning,
0:54:01 > 0:54:05but I didn't know that until they started living and using it properly.
0:54:05 > 0:54:07So it's a perfect solution for us both, really.
0:54:07 > 0:54:10'So everyone's a winner.
0:54:10 > 0:54:13'We asked two local estate agents along to the property
0:54:13 > 0:54:17'to get their take on it. Remember Hannah paid £68,000 for the house,
0:54:17 > 0:54:21'plus an additional £5,000 arranging the finance privately.
0:54:21 > 0:54:25'Which makes the total outlay of £73,000.'
0:54:25 > 0:54:29First impressions, it's nicely done out, it's nicely decorated,
0:54:29 > 0:54:33it's clean, nice kitchen, good sized living room.
0:54:33 > 0:54:35First impressions are good, it's a nice location here,
0:54:35 > 0:54:38you're overlooking the park to the front.
0:54:38 > 0:54:41The property has been done up to a reasonable standard.
0:54:41 > 0:54:46And it's probably based for the rental market, I would have thought.
0:54:48 > 0:54:53The rental value for the property I would estimate £495 at a push,
0:54:53 > 0:54:58but probably more realistic, £475 per calendar month.
0:54:58 > 0:55:02The rental valuation for this property is £500 per calendar month.
0:55:02 > 0:55:08Well, the current tenants pay £525. So I get a bit more than that.
0:55:08 > 0:55:12'With Hannah receiving £525 a month
0:55:12 > 0:55:15'and her total spend here being around £73,000,
0:55:15 > 0:55:19'that's an impressive rental yield of over 8.5 percent.
0:55:19 > 0:55:23'If she were to consider selling, what could it make on the resale market?'
0:55:25 > 0:55:31If we were going to be selling this property, I would suggest an initial marketing price of £89,995,
0:55:31 > 0:55:35with a view to achieving £85,000.
0:55:35 > 0:55:38I would value this property at £95,000.
0:55:38 > 0:55:45OK. Well, that's good news considering I haven't actually done anything to the property myself.
0:55:45 > 0:55:49I do think if I had renovated it completely, and done it how I normally do it,
0:55:49 > 0:55:55I think it would have valued up higher. But I'm more than happy with that valuation.
0:55:55 > 0:55:57'As well she should be.
0:55:57 > 0:56:03'If Hannah did decide to sell and given that she hasn't had to dip into her renovation budget,
0:56:03 > 0:56:08'she could be looking at a pre-tax profit of between £12,000 and £22,000
0:56:08 > 0:56:10'minus the usual selling expenses.
0:56:10 > 0:56:15'This has been a great purchase for Hannah, and based on her own experiences,
0:56:15 > 0:56:19'she's got some sound advice for any would-be auction buyers.'
0:56:19 > 0:56:24There's no reason whatsoever that buying at auction is a bad thing,
0:56:24 > 0:56:29providing you are well-prepared and you've got your finance in place beforehand,
0:56:29 > 0:56:32and you do the research, as far as the legalities.
0:56:32 > 0:56:36And I would always make sure that you view the property well in advance of the auction,
0:56:36 > 0:56:42so that it's not a rash decision. You can think about it properly and make sure it's the right choice for you.
0:56:45 > 0:56:49We look forward to seeing you soon for more Homes Under The Hammer.
0:56:49 > 0:56:54- Yes, join us next time for more auction action. - See you then.- Bye.- Goodbye.
0:56:57 > 0:57:01Subtitles by Red Bee Media Ltd
0:57:01 > 0:57:05E-mail subtitling@bbc.co.uk
0:57:05 > 0:57:05.