Episode 82 Homes Under the Hammer


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Episode 82

Martin Roberts and Lucy Alexander visit a bungalow in Fife, a plot of land in Chatham and a two-bed semi in Derbyshire. Find out who bought these properties at auction.


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Transcript


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-Hello and welcome to the show.

-Even in these difficult times,

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those glamorous properties we see in magazines are still tempting us.

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But, for some, they're even more unaffordable right now.

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But you can get yourself, quite possibly,

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a really impressive property for not much money by going to the auctions.

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Well, there are thousands of properties

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available at auctions every month and the diversity's huge,

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from houses to flats to plots of land that are ripe for development.

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Whatever you're looking for, there's something that fits the bill,

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so take a look at the properties

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that got our auction bidders hot under the collar today.

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This two-three bed bungalow in Fife has an unusual line in mod cons.

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A rather surprising kitchen accessory.

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In Chatham, Kent, the owner will have to dig deep

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to make this plot of land work.

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Whoever takes this on is going to have some serious excavating to do.

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And in Draycott, Derbyshire,

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has this two-bed semi-detached got any potential? Who knows?

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All in all, bit of a TARDIS, this one.

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All these properties have been sold at auction and we'll find out

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who bought them and what they paid when they went under the hammer.

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You've got yourself a house.

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This is the River Eden, which flows through the Royal Borough of Cupar.

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You've got Edinburgh to the south, St Andrews to the north

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and it's a jolly nice place to live.

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With a nature trail running alongside the river

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and no shortage of parks, Cupar in the county of Fife

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is a place where you can enjoy the great outdoors.

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But, on the practical side, the vast road network

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and great train links whisk you up and down the east of Scotland,

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so, as a commuter town, it's got a lot going for it.

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The property I'm here to see is in this highly sought-after

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residential area right at the end of a cul-de-sac.

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Two to three-bedroom bungalow. Had a guide price of £130,000-£140,000.

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Let's take a look.

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The bungalow was built by the RAF as married quarters for staff

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based at RAF Leuchars Air Base about ten miles away.

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It's now been sold off by the Ministry of Defence,

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so with good schools nearby, it could be a good catch.

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The property's right at the end of the cul-de-sac,

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which gives you lovely privacy and, in terms of location,

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amazing views over the surrounding hills.

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The good news is, neighbours have also put in extensions in the roofs,

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so, ooh, I'm getting excited!

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As it's detached, that means this bungalow

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is surrounded by a garden and, in this case, a good-sized one.

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Another bonus is the garage on the driveway, which will save you

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having to fight for a parking space at the end of the cul-de-sac.

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So, what's on offer?

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It's nice to have this entrance area as you come through the front door.

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Somewhere to hang your coats and stuff like that.

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And into, well, this is a lovely surprise for a bungalow.

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A really nice big entrance area.

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Generally in bungalows you don't have this. Wonderful news.

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Bedroom there. Second bedroom towards the back.

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Then a bedroom/dining room there and the loo.

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All in all, fairly basic lay-out but what I see straightaway is that.

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Now, that is good news

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because I'm immediately thinking

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a potential to extend up into the loft.

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There's enough space here maybe

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to put in a spiral staircase to get you up there. Fab!

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The bathroom may need work to make it acceptable by today's standards

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but, with a modest make-over, the two bedrooms could be good to go.

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The same goes for the living room, but you could update that fireplace.

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But with plenty of light coming in, and great views looking out,

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this room could really be inviting.

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Through to the kitchen and a rather surprising kitchen accessory.

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Yes, a wheelie bin.

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Don't normally see those in the middle of the kitchen.

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That's not good. Clearly, some major problem with a leak in the loft,

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which is dribbling water down through the electrics. Not ideal.

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That's clearly a problem that needs to be sorted out,

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but the kitchen itself, nice views over the garden.

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Tired and dated units, but it's a good-sized space.

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All in all, yeah, fantastic. It's nice.

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Here.

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OK, so this is the dining room then,

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or I suppose it could be that third bedroom.

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But what I'm thinking straightaway is this wall.

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Wouldn't it be fantastic to take this out

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and open up the whole of this space?

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That would create a really fantastic amount of space. Kitchen diner.

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I mean, the only downside, of course,

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is you're losing a potential bedroom.

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It all depends what you plan to use it for.

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Of course, if you extend into the loft space,

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then losing a bedroom downstairs wouldn't be so much of a problem.

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If this falls within permitted development,

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you may also be able to save yourself the hassle

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of getting planning permission, but always best to check first.

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Getting back to that water problem,

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it seems the kitchen isn't the only place suffering at the moment.

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The adjacent room seems to have sprung a leak as well.

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It's important the new owner sorts the problem as soon as possible,

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but with a good-sized garden that needs attention from a lawnmower,

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and the guide price of £130,000-£140,0000,

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this bungalow does seem very attractive.

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Time to find out what a local estate agent thinks.

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First impressions, this is bigger on the inside than the outside.

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A good-sized property.

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Excellent plot. Very large. Very nice views.

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In my opinion, quite sellable.

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What should the new owner do to add value?

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I would be doing a conversion of the attic.

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It's my understanding that it is ready-made for conversion.

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Well, that would explain the windows already in the loft,

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but if the owner did the conversion and put in a kitchen diner,

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the estate agent estimates the cost would be around £40,000,

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So, with a guide price of 130,000-140,000,

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how would the sale return stack up?

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If you were to take advantage of the attic conversion and kitchen diner,

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I estimated the resale value being in order of £210,000-£215,000.

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What could it be rented out for?

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If converted,

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I estimate the rental value would be between £800-£825 per month.

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So, a few immediate problems to solve

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and some modernisation issues to deal with.

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However, you can't knock the location.

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With the potential to expand, I think this is a great one to go for.

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Let's see who agreed with me when it went under the hammer.

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Lot number 319.

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I now have a proxy bid on this property,

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so for someone who couldn't be here today, so I will be bidding

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on behalf of the proxy bidder.

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I'm going to start with my proxy bidder at an opening bid

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of £125,000.

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Looking for 126 in the room. Is that a bid, sir? £126,000, I've got.

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I can go 127, then, with the proxy bidder. Back at 128 it is.

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129. 130. 130,000.

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131. 132. 133, I can still go.

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133. 134.

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'The two bidders are locked in a bidding battle,

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'determined to buy the lot.

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'We pick up when the bidding has reached £149,000.'

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149. £149,000.

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I can go for 149,250.

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149,500.

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149,750, you're unsurprised to learn.

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Round it up to 150.

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150,000, it is. At £150,000.

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You'll be delighted that the proxy is now out.

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£150,000, I'm going to sell at this level, ladies and gentlemen.

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Is anyone else coming in? Be very quick.

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Sold.

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'That successful bid of 150,000 was made by husband and wife team

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'Chris and Liz.

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'Liz has recently retired from the health service,

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'while Chris works for the RAF as an admin officer.

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'So it seems fitting that they have bought ex married quarters.

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'The couple currently live in Paisley

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'and have high hopes for their new purchase,

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'but it seems they might not be the new occupants.'

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Chris, Liz, lovely to meet you both. Congratulations.

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-Tell me why you want this bungalow.

-We're buying it for my sister-in-law.

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She is desperate to move to this part of the country.

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Her son is hopefully going to university this summer.

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They have pets and, unfortunately,

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people don't like to rent to people with pets.

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-So we've agreed we'll buy it and they'll rent it off us.

-Right.

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If they don't like it in a few years' time, it's a house we would very happily retire to

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when I leave the air force so it's great for everybody.

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'In fact, Ann, Liz's sister,

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'was at the auction sitting between Liz and Chris.

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'No wonder she looks happy!'

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# Sisters, sisters

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# There were never such devoted sisters. #

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It's a lovely gesture to help Liz's sister and her two sons

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out of a tight spot, but accommodation here

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could be tight as well, so what attracted them to this property?

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The potential that it has.

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There's windows up there already,

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so it'll be comparatively easy to make it into two en-suite bedrooms.

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We've got builders coming this afternoon to discuss that with us.

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Right.

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Knock down the wall between the kitchen and dining room,

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and extend the kitchen into a kitchen-diner.

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And we've seen it being done in houses, so we know what can be done.

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I'm told they built these houses with the intention that people could extend into upstairs,

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so hopefully the roof strength is there already.

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-There shouldn't be the extra cost of RSJs that you'd normally need.

-Hopefully the floor's there.

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-Hopefully - we haven't seen it.

-You haven't? Right.

-So it's a bit of pot luck.

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So what about planning permission for what you've got in mind?

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We've already lodged a request with the council.

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To see if we need planning permission.

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And we're waiting for their response.

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Hopefully it shouldn't need it since what we're doing is internal.

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I don't think Velux windows count as external,

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we're not changing the property's footprint,

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so I don't envisage a problem, but these things can take a long time.

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'As well as getting permission to install the two en-suite bedrooms upstairs,

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'the couple aim to replace the kitchen and bathroom,

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'check the wiring and plumbing and redecorate throughout.

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'However, neither of them has any experience of developing properties.

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'It's all down to finding and hiring the right builders for the job.

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'They also have a tight deadline of two months to get the place

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'ready for Liz's sister. And the reason?'

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I'm in the Air Force. We tend to move round every couple of years or so.

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I've been lucky to get a job in NATO in Denmark.

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-Right.

-Hence I'm trying to get things done,

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as much as we can done, before we go.

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# Come fly with me let's fly, let's fly away... #

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So lots to do, and you want it done quite quickly.

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That's presumably going to mean a reasonable budget to do it.

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We bit into the budget a bit buying the house.

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We'd hoped to buy at 130-140, and I had a 170 budget,

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so we've got about 20,000 to play with,

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which I think should cover most of it.

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-Right.

-If we have to go a little further, we might have to stage the work.

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20,000 quid might be a bit tight for putting those two bedrooms in.

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So the contingency,

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if the quotes come in much higher than that, is what?

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Spread the work. I can find a little extra money if necessary.

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I can probably take it up to 25, 26 if necessary,

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so there is a contingency in there.

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-Don't tell the builders that yet.

-No, don't tell him that, no!

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'Well, before it's chocks away, Chris and Liz have a short

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'space of time and a limited budget to get the work done, so I'm glad

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'they've got a contingency fund for those unexpected developments.'

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So, in terms of your sister's involvement in the restoration, is she going to have a say?

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Oh, yes, definitely.

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And we'll all be on, you know, painting duty

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once all the building work's done, so yes.

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It makes sense because, hopefully, her plan is to live here a long time - 20, 30 years, perhaps -

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so she might as well have what she wanted.

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What does she say about what you're doing?

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-She's just thrilled, absolutely thrilled.

-Well, if you can't help family, who can you help?

-Yes.

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-Well, congratulations.

-Thank you.

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-Good luck with it, good luck with the building quotes.

-Yes, thank you(!)

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-We look forward to seeing how you get on.

-Thanks.

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Well, this is one of those projects where you SO hope it succeeds.

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Chris and Liz buying this house for the best possible reasons.

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But I am a little bit concerned about the timescale,

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and that £20,000 budget.

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You can find out how they get on later in the show.

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Today I'm in Chatham in Kent,

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an area that's been going through something of a facelift of late.

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If the regenerated dockyards are anything to go by,

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I reckon investment opportunities round here may be worth

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getting into a flap about.

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Today I'm in the residential area of Lords Wood Lane,

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which, as far as Chatham's concerned, doesn't get much better.

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However, the lot I'm looking for is proving rather hard to locate.

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I'm here to see a plot of land with planning permission

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for a two-bedroom chalet bungalow and a guide of 65 - 70,000.

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But, without a set of steps in my back pocket,

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I'm going to have to pick my way over next door's gravel.

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Don't worry, I have asked!

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'Well, it's a pretty unorthodox way of checking out a plot,

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'and not perhaps the best shoes for the job,

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'but I'm not so sure this development is all about fun.'

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Well, apart from being a hassle to view,

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the first issue that springs to mind here is that

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whoever takes this on is going to have some serious excavating to do

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before they get started.

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And access up here is always going to be via steps or a steep slope -

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not perfect for the less sprightly on their feet.

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Remember, this is a shallow bungalow,

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which means it will have living space in the loft.

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So, buyers expecting a step-free home may be disappointed.

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It does mean you get more space for your money.

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But what about the plot of land itself?

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Now, straightaway, I can see that this was part of somebody's garden.

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I think it belonged to this house here, because you can see,

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there's a fairly new fence that's been put up.

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What I do like is that there are lots of trees here,

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so it's shielding you from the road, although

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you will have to take some of those out to create that entrance.

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And now I'm standing here, I can see this plot of land is on

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a slight gradient, so something for the builders to think about too.

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You've also got views over the Medway, which is really nice.

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So, all in all,

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I can imagine this would be quite a nice place to live, and surely,

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that's all you're looking for when you're looking for a plot of land.

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As the saying goes, "build it and they will come".

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And into the bargain, hopefully, buy it.

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Despite the issues with the slope,

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they are more than compensated for by the surroundings.

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But remember, the lot comes WITH planning permission,

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so, how do the plans measure up?

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It's always exciting for me, looking through plans.

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These are quite basic, but it does demonstrate the floorspace.

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I can see that the downstairs has got a kitchen/diner,

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that runs into the lounge.

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Two big lovely double doors that lead out onto the garden,

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which make the most of the downstairs space.

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You've also got a bedroom here, which is bedroom two.

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So, the main bedroom is on the top floor of the bungalow,

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which is upstairs in the eaves.

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Now, I can see that there is a huge storage space running

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all the way around the outside.

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Now surely, that is a bit of a waste of space. Do you think, possibly,

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we could squeeze another bedroom out of that?

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I think by doing that,

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you would then really appeal to the family market.

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I think that would be worth a shot.

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As it stands, with that guide price of £65-£70,000,

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I don't think a two-bed bungalow would make that much money

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once you've done a decent build.

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But add a third bedroom and you'd be increasing

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the value by more than the work would cost.

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To me, it would make much more sense.

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But for a second opinion, I asked along a local estate agent

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to hear his thoughts on this plot of land.

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My first impressions of the plot are, obviously,

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being on a slope will have one or two issues, but the size is very good.

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The location, being right on the corner, is very good.

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In the garden sizing, it'd be a good size as well.

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So, my first impressions are very good, and I'm surprised at the site.

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So, access to the site may not be a great problem,

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but can those plans be improved upon?

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The plans for a two bedroom chalet detached bungalow are good plans,

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but I think you could potentially use the size a bit more.

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There's a lot of loft space that could be used into a three bed,

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make it a three-bedroom home,

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which would be more popular with families in the area.

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The plot had a guide price of £65-£70,000.

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So, how could the returns stack up first for resale?

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As a two-bedroom detached bungalow,

0:18:180:18:20

you'll be looking in the region of a maximum of 200,000.

0:18:200:18:24

For a three-bedroom property, would be

0:18:240:18:26

looking in the region of £220-£225,000.

0:18:260:18:29

-And rental?

-As a two-bedroom property,

0:18:290:18:32

you'd be looking in the region of £750 per calendar month.

0:18:320:18:35

As a three-bedroom property, around about £825 per calendar month.

0:18:350:18:39

So, it's a climb to get to it, but it's no stretch

0:18:400:18:44

of the imagination to see that this plot could be a good development.

0:18:440:18:48

Spend too much on the purchase or the build, well,

0:18:480:18:51

you're then leaving yourself with a tight profit.

0:18:510:18:54

Let's see what it went for at the auction.

0:18:540:18:56

Lot 25. Start me where you will on that one. £65,000 anywhere?

0:18:590:19:05

65,000 anywhere? I'm looking for £50,000 opening bid.

0:19:050:19:09

50, I'm on the way. And five, now, do I see?

0:19:090:19:12

Five, that's 60. At 60.

0:19:120:19:14

62. 62.

0:19:140:19:16

65. 65.

0:19:160:19:19

67. 67. 67.

0:19:190:19:23

And 70. And two.

0:19:230:19:25

And two, I'm looking for. 72.

0:19:250:19:27

And five. And seven. 77.

0:19:270:19:31

77. And 80.

0:19:310:19:33

And 82. At 82. And five.

0:19:330:19:36

And seven. 87.

0:19:360:19:39

90, to the original bidder.

0:19:390:19:42

At £87,000 bid on my right. He's against you in the blue on the left.

0:19:420:19:46

First time at £87,000. Second time at £87,000.

0:19:460:19:52

Third and final time at £87,000. All done.

0:19:520:19:54

It's all yours. £87,000.

0:19:540:19:57

That successful bid of 87,000

0:19:570:19:59

was made by Frank from Sevenoaks in Kent.

0:19:590:20:02

He's a self-employed builder-developer

0:20:060:20:08

and has built around 35 homes to date.

0:20:080:20:11

I met him back at the plot to find out his plans for house number 36.

0:20:120:20:18

-Frank, congratulations.

-Thanks very much.

0:20:180:20:21

How did you feel on auction day when the hammer went down and you had won this plot?

0:20:210:20:26

Fantastic. Really fantastic.

0:20:260:20:28

Well, to be honest, it was only between me and the other man.

0:20:280:20:33

If he had gone over the top on my last bid,

0:20:330:20:35

-I would have bowed out as well.

-Really?!

-Yes. So that was very good.

0:20:350:20:40

-Were you happy with the price you paid? £87,000?

-Absolutely. Yes.

0:20:400:20:44

I didn't think I would get this at that price, to be honest,

0:20:440:20:47

-but there you go.

-So how much do you know about building plots?

0:20:470:20:50

What were you doing at the auction in the first place?

0:20:500:20:53

I'm a builder anyway. I do loft conversions, extensions. That type of thing.

0:20:530:20:58

And I used to work for a developer and I was,

0:20:580:21:01

if you like, kept down there, but now I've managed to get

0:21:010:21:04

a bit of money and bought the odd plot here and there.

0:21:040:21:09

You used to work for a developer,

0:21:090:21:11

-but you're doing it for yourself now?

-Absolutely. Yes.

0:21:110:21:14

-So you're the main man?

-I am the main man.

0:21:140:21:17

-Building, developing?

-The buck stops here! THEY LAUGH

0:21:170:21:20

Well, it's great to meet someone who has taken a risk

0:21:200:21:23

and seems to have succeeded. Good on you, Frank!

0:21:230:21:26

# You can go your own way

0:21:260:21:29

# Go your own way. #

0:21:290:21:33

But as he says, the buck stops here.

0:21:330:21:35

So has he decided what to do about the issues with the slope?

0:21:350:21:39

It's not a flat site by any means, you've got to get access in,

0:21:390:21:43

which is a ramp, and then once you get in, it makes it worse,

0:21:430:21:47

put it that way.

0:21:470:21:49

If it had been a flat site, it would have been really hunky-dory,

0:21:490:21:52

but there's a little bit of work to be done on it.

0:21:520:21:55

How will you overcome this? Will there be an awful lot of excavation going on

0:21:550:21:59

to get down onto the lower-level?

0:21:590:22:01

No. No. It'll stay at the heart. I'll level it off slightly.

0:22:010:22:04

Obviously we've got to take the spall off the front,

0:22:040:22:07

because the house to their right is at that level

0:22:070:22:10

and I will keep to that.

0:22:100:22:12

And then we've got to ramp from the pathway up to this level.

0:22:120:22:16

Frank seems quite relaxed about dealing with the slope and the bank here.

0:22:170:22:21

He's also seen a better way of getting value from the build

0:22:210:22:24

would be adding that third bedroom.

0:22:240:22:27

How are you going to squeeze another bedroom out of that?

0:22:270:22:31

If you look, that seems to be a waste of space.

0:22:310:22:34

Look at the wasted space they've got there.

0:22:340:22:37

-That's just loft storage space.

-Exactly.

0:22:370:22:39

The thing is, you're pitching the roof, and that is quite a wide area.

0:22:390:22:42

You could get another bedroom in there.

0:22:420:22:44

But perhaps the planners don't want that particular situation,

0:22:440:22:48

but it lends itself to another bedroom there.

0:22:480:22:50

That'll effect the saleability.

0:22:500:22:52

-I really hope that goes your way.

-I would like that as well, yes.

0:22:520:22:57

But there again, I bought it with planning for two beds,

0:22:570:23:00

so in regards to that, if it comes to it, we'll build it on that.

0:23:000:23:03

It's not a disaster if he doesn't get permission for that third bedroom, but just doing

0:23:030:23:08

a two-bed chalet bungalow would obviously lower his profit margin.

0:23:080:23:11

With a build cost of £80-£90,000,

0:23:110:23:14

Frank reckons it would take two months to get things sorted

0:23:140:23:17

with planning and a further six months to do the build.

0:23:170:23:20

However, this very much depends on how the market is looking,

0:23:200:23:24

so things are a bit up in the air at the moment.

0:23:240:23:26

But he's an experienced builder,

0:23:280:23:29

so I'm sure he's prepared himself for the project ahead.

0:23:290:23:34

What is your experience with building, Frank?

0:23:340:23:37

I started working when I was 15. In a little firm in Sidcup.

0:23:370:23:43

And I was told by my mother to get my best clothes on,

0:23:430:23:48

and I was unloading tiles off a roof in the afternoon.

0:23:480:23:52

-But I love it. I live and die the game.

-Frank, congratulations.

0:23:520:23:55

-You've come a long way over the years, well done to you.

-Thanks very much indeed.

-Well done.

-Cheers.

0:23:550:24:00

Frank has got a passion for his work and what a difference that makes!

0:24:000:24:04

I think getting permission for that third bedroom is key

0:24:040:24:07

to the saleability. And that all-important profit.

0:24:070:24:11

Find out if he twists the planners' arms later on in the programme.

0:24:110:24:15

Coming up - the staircase in this house in Derbyshire

0:24:160:24:19

has already been altered once before, but...

0:24:190:24:22

I hate to say it, I think it needs to be moved again!

0:24:220:24:25

In Chatham, did the excavation go well for Frank?

0:24:260:24:31

Not knowing what the ground conditions were like,

0:24:310:24:34

perhaps I should have had a soil sample.

0:24:340:24:36

But first, have Liz's sister

0:24:370:24:40

and nephews made themselves at home in Fife?

0:24:400:24:43

It's like being on holiday or something,

0:24:430:24:45

they just absolutely love it.

0:24:450:24:47

It's now back to the Royal Borough of Cupar in Fife,

0:24:500:24:54

where earlier, married couple Chris and Liz bought this

0:24:540:24:57

two to three-bedroom bungalow for £150,000.

0:24:570:25:00

The plan was to renovate the ground floor and add two ensuite bedrooms

0:25:030:25:07

in the loft that seemed tailor-made for a conversion.

0:25:070:25:11

But all that work wasn't for themselves.

0:25:110:25:14

We're buying it for my sister-in-law.

0:25:140:25:15

She's desperate to move to this part of the country.

0:25:150:25:18

Her son is hopefully going to university this summer,

0:25:180:25:21

so, we've agreed to buy it and they'll rent it off us.

0:25:210:25:24

And Liz's sister Anne, seen here at the auction

0:25:240:25:28

seated between Chris and Liz is clearly delighted.

0:25:280:25:31

But for the amount of work Chris and Liz wanted to do,

0:25:310:25:34

they had a tight budget of £20,000

0:25:340:25:36

and due to Chris's work commitments abroad

0:25:360:25:39

an even tighter turnaround of just two months.

0:25:390:25:42

It was going to be a close call, but three-and-a-half months later,

0:25:420:25:46

we've returned to Cupar to see how they've progressed.

0:25:460:25:49

And from the outside,

0:25:500:25:52

new Velux windows show that some work has been going on.

0:25:520:25:56

And stepping inside,

0:25:590:26:00

the front room has been transformed into a fresh, comfortable lounge.

0:26:000:26:04

And the rear?

0:26:040:26:06

Chris and Liz have gone ahead and removed the wall

0:26:100:26:14

to create an open plan and bright kitchen dining room.

0:26:140:26:17

And the new stairs leads to a stunning new loft conversion,

0:26:180:26:22

housing two ensuite bedrooms,

0:26:220:26:24

both tastefully decorated by Liz's sister Anne.

0:26:240:26:28

She now lives with her two sons.

0:26:280:26:32

But we'll leave it to Liz to tell us more.

0:26:320:26:35

Up here in this space, there was absolutely nothing at all,

0:26:350:26:38

so they have managed to create two double bedrooms,

0:26:380:26:41

both with ensuite, built-in wardrobes

0:26:410:26:45

and extra storage under the eaves, which is an absolute bonus.

0:26:450:26:49

There also was windows already in situ, which was great.

0:26:490:26:53

And somewhere along the line, they provided double glazing

0:26:530:26:56

to match the rest of the house, which was an absolute bonus for us.

0:26:560:27:00

We've also added Velux windows in both the bedrooms,

0:27:000:27:04

in the en-suite and in the hall area as well.

0:27:040:27:08

Both of these en suite rooms are amazing spaces.

0:27:080:27:12

More importantly,

0:27:130:27:14

they've utilised the potential of the bungalow to great effect.

0:27:140:27:18

And the new kitchen is equally a major bonus.

0:27:180:27:23

So, this is the room that we had the most work downstairs done in.

0:27:230:27:28

Initially, there was a wall there that we had knocked down.

0:27:280:27:32

A cooker point in the corner and a doorway through here.

0:27:320:27:35

The doorway was sealed off, new cooker and a complete

0:27:350:27:38

new kitchen put in. Room to get all of the usual white goods,

0:27:380:27:41

dishwasher, washing machine, and of course, the stairs which

0:27:410:27:44

we'd initially planned to have out in the hallway, rather than ruin

0:27:440:27:48

a nice, large hallway, the builder recommended

0:27:480:27:51

we put it into here from the dining area up to upstairs.

0:27:510:27:54

And that's really made a massive difference.

0:27:540:27:56

It gives that nice big area that we wanted.

0:27:560:27:59

And access here without really ruining what's quite a good dining space.

0:27:590:28:02

It's a good move all round.

0:28:020:28:05

But of course, this is a new home for Liz's sister

0:28:070:28:11

and her two sons, who have all settled in well.

0:28:110:28:15

They absolutely love it. They just love it.

0:28:150:28:18

They can't believe that they are actually here and living here.

0:28:180:28:21

It's like being on holiday or something, they absolutely love it.

0:28:210:28:24

The boys' bedrooms have been made into comfortable pads,

0:28:240:28:29

just right for the boys' toys.

0:28:290:28:31

And the ground floor bathroom has had a small change with a WC

0:28:350:28:39

and wash basin remaining, but a new bath and shower installed.

0:28:390:28:44

In all, it's been a hassle-free renovation for the couple,

0:28:450:28:48

not least because they left everything to their builder.

0:28:480:28:52

The hardest thing for us is being away in Denmark now,

0:28:520:28:55

because we've not been here to see what was going on.

0:28:550:28:59

Fortunately, with computerisation, they were able

0:28:590:29:02

to send us pictures throughout the process, so we had a rough idea.

0:29:020:29:06

And I'm just so pleased to be home now

0:29:060:29:08

so we can actually see it!

0:29:080:29:11

# Welcome home

0:29:110:29:15

# Welcome

0:29:150:29:19

# Come on in

0:29:190:29:23

# And close the door. #

0:29:230:29:25

Well, it was just as well that Chris and Liz found a builder

0:29:250:29:29

who could give them such a welcoming final product.

0:29:290:29:32

But before flying off to Denmark, there were some issues to overcome.

0:29:320:29:37

As they weren't enlarging the bungalow footprint

0:29:380:29:41

or installing dormer windows, planning permission wasn't required.

0:29:410:29:44

But the loft conversion meant more work than initially thought,

0:29:440:29:48

as the bungalow's structure didn't meet the new building regulations. This held them up.

0:29:480:29:53

We didn't need planning permission, but we needed a building warranty.

0:29:530:29:56

It wasn't something we'd thought of, but that's required,

0:29:560:29:59

and that probably put a four to six-week delay

0:29:590:30:02

on what we thought would be the timeframe.

0:30:020:30:04

That pushed the original schedule up from two to three months.

0:30:040:30:08

But with the speed and quality of the work, it must have been curtains

0:30:080:30:11

for Chris and Liz's original budget of 20,000.

0:30:110:30:15

We haven't got the final bill yet, but I reckon the decoration,

0:30:160:30:19

the carpets and all the work and the extras -

0:30:190:30:22

probably about £50,000 on top of the house purchase.

0:30:220:30:24

Add that £50,000 to their £150,000 purchase price

0:30:260:30:29

and their total outlay is now 200,000.

0:30:290:30:33

We asked two local estate agents

0:30:330:30:36

what they thought of their investment.

0:30:360:30:39

First impressions are very good.

0:30:410:30:42

They made an excellent job of the property,

0:30:420:30:45

especially the upstairs conversion.

0:30:450:30:47

It's perhaps a little bit more spacious

0:30:470:30:49

than you would have first thought,

0:30:490:30:51

and the fact that they've got two en-suite bathrooms does lift it.

0:30:510:30:54

First impressions, it's a lovely house.

0:30:560:30:59

I like what they've done to the property. Nice and modern inside

0:30:590:31:02

from an older style property on the outside. Certainly modernised.

0:31:020:31:05

It's definitely made a difference to this property.

0:31:050:31:08

What sort of value does the bungalow now have?

0:31:080:31:12

Remember, Chris and Liz's overall investment is around £200,000,

0:31:120:31:16

so how much could it sell for?

0:31:160:31:19

The resale valuation in the current market for this property would be

0:31:190:31:23

of the order of £210,000 to £220,000.

0:31:230:31:26

The valuation in my opinion is likely to be

0:31:260:31:29

in the region of £210,000 to £220,000.

0:31:290:31:32

That's better than we thought.

0:31:320:31:34

We figured about 205/210 based on the market dropping a bit,

0:31:340:31:39

so that's good news, yeah.

0:31:390:31:41

If they ever decide to sell,

0:31:410:31:43

Chris and Liz would stand make a healthy profit

0:31:430:31:45

of £20,000 minus the usual taxes and expenses.

0:31:450:31:49

And there's a possible rental yield of 5%

0:31:490:31:52

if they ever choose to let the property.

0:31:520:31:54

But this is not about the money, but about family.

0:31:590:32:02

The couple have provided a new home for Liz's sister, Anne,

0:32:020:32:07

and her two sons. And the youngest, Ross, will drink to that.

0:32:070:32:10

Chris and Liz are already planning their next move.

0:32:100:32:13

Well, we're in Denmark for the next two years,

0:32:130:32:16

and then after that we'll be looking to settle in this area as well.

0:32:160:32:21

So, I guess in about a year we'll look at the property market

0:32:210:32:24

either at auction again if something comes up in the area, or buying direct from an estate agent.

0:32:240:32:29

But now we've done the auction, we may be more inclined

0:32:290:32:31

to look at that in preference to an estate agent, so, yeah.

0:32:310:32:34

This is Draycott in Derbyshire,

0:32:380:32:40

about six miles east of Derby city centre.

0:32:400:32:43

It's actually mentioned in the Domesday Book.

0:32:430:32:45

The name means "dry place". More recently, in the 1900s,

0:32:450:32:49

it was home to one of the largest lace manufacturing mills in Europe.

0:32:490:32:53

That's now been converted into flats.

0:32:530:32:55

The property I'm here to see is just close by.

0:32:550:32:59

'Today, Draycott is a popular commuter village.

0:32:590:33:02

'But it grew up around two large mills, so a lot of the housing stock

0:33:020:33:06

'was built for mill workers.

0:33:060:33:07

'And today's property is no exception.'

0:33:070:33:10

And here it is.

0:33:130:33:14

It's a two-bed semi on a road which has a mixture of commercial

0:33:140:33:18

and residential property. Looks a bit shabby from the outside.

0:33:180:33:21

Certainly, the window frames need replacing.

0:33:210:33:23

Let's hope that's not an indication of what it's like inside.

0:33:230:33:26

Guide price was 65 grand. Let's take a look.

0:33:260:33:29

# My whole world's come tumbling down

0:33:290:33:33

# I've seen better days... #

0:33:330:33:35

So, what's on offer?

0:33:350:33:37

Through this front door into your front sitting room, I suppose.

0:33:370:33:41

As you can see, it's in a bit of a state, but let's try and look through the mess.

0:33:410:33:45

Not a bad size. Obviously, you'll get quite a bit of noise from that road,

0:33:450:33:49

so double glazing would be one of the first things to put in.

0:33:490:33:52

But, progressing through, there is this glass divide. Not only is that

0:33:520:33:55

a real health hazard... What's it there for? It's yellow -

0:33:550:33:59

it gives a really weird light to this rear part of the property.

0:33:590:34:04

Again, not a bad size. Like the open plan stairs going up there.

0:34:040:34:07

My guess is that those stairs have actually been moved

0:34:070:34:10

at some point in the past.

0:34:100:34:11

So, it gives a really nice open area here.

0:34:110:34:14

And then through to the very rear of the property,

0:34:140:34:17

where you've got this very long kitchen.

0:34:170:34:19

The old boiler needs sorting out

0:34:190:34:22

and clearly the units in here have seen better days.

0:34:220:34:24

So spend some money in here and transform this room for sure.

0:34:240:34:27

But, I mean, all in all, it's a bit of a TARDIS, this one.

0:34:270:34:31

'And out the back, you may well need the help of a Time Lord to work out

0:34:310:34:34

-'how this garden once looked.

-MUSIC: Theme from Doctor Who

0:34:340:34:37

'You might think about incorporating the old outside loo into the kitchen,

0:34:370:34:42

'but before getting too carried away, what about the first floor?'

0:34:420:34:46

So, upstairs, and has the relocating of the staircase

0:34:470:34:51

actually made a big difference?

0:34:510:34:54

I'm not so sure. What have we got at the front?

0:34:540:34:56

Big double bedroom - serious signs of damp which definitely needs investigating.

0:34:560:35:01

But then, down this corridor, second bedroom here, not as big,

0:35:010:35:05

but still not a bad size.

0:35:050:35:06

But then the corridor continues down there

0:35:060:35:09

to that absolutely massive bathroom.

0:35:090:35:12

Just doesn't seem to work, as far as I'm concerned.

0:35:120:35:15

So, what can we do about it? Well, am I missing anything?

0:35:150:35:18

Only thing I can see actually up there, there may be scope to go

0:35:180:35:22

upwards to get maybe another bedroom,

0:35:220:35:24

and play around with the staircase. Hate to say, I think it needs moved again.

0:35:240:35:28

# Get up Get on up... #

0:35:280:35:31

'Moving stairs, loft conversions -

0:35:310:35:33

'both of these options will to add thousands to a renovation budget.

0:35:330:35:38

'The auction guide price for this lot was 65 grand.

0:35:380:35:42

'We asked along the auctioneer who sold it to hear his view on the property.'

0:35:420:35:46

I think, starting at the top, you've got to look at the roof.

0:35:480:35:51

That needs overhauling, the guttering needs replaced as it's the original cast iron

0:35:510:35:56

and it's corroded and the water's escaping down the brickwork.

0:35:560:35:59

The windows -

0:35:590:36:00

right at the bottom you've got some damp-proofing to do.

0:36:000:36:03

You need to upgrade probably the bathroom, the kitchen,

0:36:030:36:07

central heating, wiring -

0:36:070:36:08

that's the usual list and it's all relevant here.

0:36:080:36:11

'What would be the best way forward for this property?'

0:36:110:36:15

One of the key ways of adding value in a sense here is to make a third bedroom somehow.

0:36:170:36:21

Originally, the bathroom would have been bedroom three.

0:36:210:36:24

But it's a big room

0:36:240:36:26

and there's probably scope to split that somehow,

0:36:260:36:29

although it would only make a small third bedroom and a small bathroom. But there is opportunity there.

0:36:290:36:35

'Food for thought there.

0:36:350:36:36

'What does he think the place could fetch on the resale market?'

0:36:360:36:39

I would say, if it stays as a two-bedroomed house,

0:36:430:36:45

it probably has got a ceiling value of just short of £100,000.

0:36:450:36:49

If you made three bedrooms and it was a sensible arrangement,

0:36:490:36:52

then you could probably add £10,000 to that.

0:36:520:36:55

Selling on for 100 or 110 grand sounds pretty good to me,

0:37:010:37:05

but what if it was rented out?

0:37:050:37:07

The rental market around here is pretty strong,

0:37:070:37:10

and I would say that when it is renovated,

0:37:100:37:12

it would have a rental value of about £485 per calendar month.

0:37:120:37:16

So, a bit of work to be done to sort this out,

0:37:170:37:19

but I think spend the effort and a little bit of money,

0:37:190:37:22

and for that £65,000 guide price this would make

0:37:220:37:25

a really pleasant place to live, or a great rental opportunity.

0:37:250:37:28

Let's see who agreed when it went under the hammer.

0:37:280:37:31

Lot 13, a two-bedroom semi. 65 plus is the guide price.

0:37:330:37:38

I'll take 60 to get on. £60,000? 60,000, thank you.

0:37:380:37:43

At £60,000, opening bid. 61 anywhere? 61, thank you.

0:37:430:37:49

At 61,000, 62 in the centre. 62, 63 is bid. 63, 64 now. £65,000.

0:37:490:37:58

At 65, 66? No? £65,000, 66 elsewhere?

0:37:580:38:04

66, 66, 67. 67, 68? 68. 69?

0:38:040:38:11

68 against you. 69? At £68,000, we are selling for the first time at 68.

0:38:120:38:19

Out this side, no mistakes, for the second time at 68.

0:38:190:38:22

Third and last opportunity. Sold at 68,000, thank you.

0:38:220:38:26

Our cameras may not have spotted them there,

0:38:260:38:29

but that successful bid of £68,000 was made by friends Nick, here on the left,

0:38:290:38:34

and David on the right.

0:38:340:38:35

They know each other from their local hockey club.

0:38:350:38:39

David works at the club and when Nick's not playing hockey,

0:38:390:38:43

he has his own building company, which could prove handy here.

0:38:430:38:48

-Nick, David, lovely to meet you, congratulations.

-Thank you.

0:38:480:38:51

Why did you want to buy this place?

0:38:510:38:53

We've been looking at properties over the last few months

0:38:530:38:56

and as we drove past this road we saw this property,

0:38:560:38:59

so we stopped and looked at it.

0:38:590:39:01

And we went to the auction,

0:39:010:39:03

and we thought it might not sell, we were hoping it wouldn't sell.

0:39:030:39:06

-You went to the auction, hoping it wouldn't sell?

-Yes.

-Why?

0:39:060:39:10

We thought we'd get it cheaper the following day.

0:39:100:39:12

-Ah, after a bargain?

-Yes. Obviously.

0:39:120:39:15

So in the end, we got to the auction, it dropped down to £55,000,

0:39:150:39:20

then it started to go back up and I thought I'd put my paddle in the air,

0:39:200:39:24

and it got worse, to 68,000, and I ended up getting it, unfortunately.

0:39:240:39:29

-Now!

-Do you think you've overpaid, then?

0:39:290:39:31

No, I think we've underpaid, it's just I've got a lot of work to do,

0:39:310:39:35

-and so has David, to be fair.

-Yes, absolutely.

0:39:350:39:38

Tell us about you two, what's the relationship?

0:39:380:39:41

We know each other through hockey.

0:39:410:39:44

We both play and work at Beeston Hockey Club, just down the road.

0:39:440:39:48

Nick knew my dad from years ago and yeah,

0:39:480:39:52

we've known each other donkeys' years.

0:39:520:39:54

How did it move from a relationship based on sport

0:39:540:39:57

into the idea of working on a business together?

0:39:570:40:00

I set up a couple of businesses last year,

0:40:000:40:05

and Nick and I have worked on a few projects, building projects.

0:40:050:40:09

He's bailed me out couple of times when it hasn't gone too well.

0:40:090:40:14

I'd seen this place three or four weeks before the auction

0:40:140:40:17

and thought, it's close to where I live,

0:40:170:40:19

I thought it would be an interesting project.

0:40:190:40:23

I mentioned it to Nick

0:40:230:40:25

and obviously, we went to the auction and bought it...

0:40:250:40:28

What preparation did you do

0:40:280:40:30

before you bought it, in terms of the legal pack and things?

0:40:300:40:33

-Nothing.

-So, no legal pack?

-No legal pack.

0:40:330:40:37

-You'd seen inside?

-No.

-No?!

0:40:370:40:38

We looked through the windows.

0:40:380:40:40

-Oh, right, that's all right, then.

-That old chestnut!

0:40:400:40:43

We'd looked at the roof from across the road and bits and bobs,

0:40:430:40:46

-but it was just a punt.

-Don't think that's going to impress me!

0:40:460:40:50

We just felt it was right, we felt it was right to go for it,

0:40:500:40:55

and being a builder, there's got to be a lot of damage

0:40:550:40:59

not to be able to put right, to lose a lot of money.

0:40:590:41:01

If there was plaster the walls and the roof was falling in...

0:41:010:41:04

When we got the keys on Tuesday, we walked in

0:41:040:41:06

and apart from the damp issues, it seemed OK, so we were lucky.

0:41:060:41:10

Won't do it again.

0:41:100:41:11

It was the most exciting three minutes I've ever had, to be fair!

0:41:110:41:14

Exciting, it may be, but as you know I always advise strongly against

0:41:140:41:18

buying a property without viewing it or reading the legal pack.

0:41:180:41:21

Ideally you should, of course, do both,

0:41:210:41:24

as it could save you a big headache in the long run.

0:41:240:41:27

So, what's the plan for it? How are you going to sort it out?

0:41:270:41:30

We'll rip all the inside out pretty much, new doors, kitchen,

0:41:300:41:35

bathroom, take that lovely yellow thing on the stairs.

0:41:350:41:39

We have thought about the outside, there is a lean-to,

0:41:390:41:42

we thought about keeping that, putting a flat roof on it

0:41:420:41:45

and putting some patio doors out onto the garden.

0:41:450:41:48

We're going to look in the roof

0:41:480:41:50

to see if there's a chance to put dormer room in the roof.

0:41:500:41:53

If not we'll make the back room, which is a bathroom now,

0:41:530:41:57

into a bedroom, and then we'll split the middle room into a small bedroom and a bathroom.

0:41:570:42:02

That will make it three bedrooms, the same as next door,

0:42:020:42:05

so hopefully it will put some value into it that way, with a bit of luck.

0:42:050:42:08

What about the position of the staircase?

0:42:080:42:11

-It has, I reckon, been moved at some point.

-We think it has been moved.

0:42:110:42:15

Depending on the dormer will depend on whether we move it back or not.

0:42:150:42:19

What are you going to do with it?

0:42:190:42:21

Are you going to sell it or rent it out?

0:42:210:42:23

The plan is to sell it, because I have borrowed money

0:42:230:42:26

off all sorts of friends, relatives, Mum,

0:42:260:42:29

and they need to get their money back.

0:42:290:42:32

I actually bought it for £1,000. The rest of it, I've had to beg, borrow and steal, yeah.

0:42:320:42:37

-Leveraging your cash, that's for sure!

-Absolutely.

0:42:370:42:40

We want to sell it, really, but you never know...

0:42:400:42:46

-So, Dave, what's the budget?

-About 10, £12,000, something like that.

0:42:460:42:52

If we can get it done for that and make ourselves £5,000 each

0:42:520:42:57

when we sell it, we are going to be laughing.

0:42:570:43:00

-A little project in three months.

-That's the timescale, three months?

0:43:000:43:04

Yeah.

0:43:040:43:05

When it comes to making decisions, how are you going to do that?

0:43:050:43:09

We will obviously do the initial labour ourselves,

0:43:090:43:12

Nick's guys will come in.

0:43:120:43:14

Probably Nick, with his experience,

0:43:140:43:16

will pick and choose what's going to go where,

0:43:160:43:18

but we are free to chat with each other.

0:43:180:43:21

-Right.

-We'll discuss it for an hour and then we'll do what I want to do!

0:43:210:43:27

-And then I'll throw him out the house!

-Terrific!

0:43:270:43:31

Nice to meet you both, congratulations,

0:43:310:43:33

-look forward to seeing how you get on.

-OK.

-Thank you.

0:43:330:43:37

Well, Nick and David have clearly got a great relationship when it comes to hockey,

0:43:370:43:41

but how will that translate to a business relationship doing up this property?

0:43:410:43:45

They have already broken the cardinal rule by not looking at it

0:43:450:43:48

or reading a legal pack before they bought it.

0:43:480:43:51

How will they get on tackling the jobs? Will they stick at it?

0:43:510:43:54

You can find out later in the show.

0:43:540:43:56

After the work has been done,

0:43:590:44:01

the property should be worth a lot more money.

0:44:010:44:03

But have our buyers started or have there been delays?

0:44:030:44:07

I hope not. Let's go back and see what they've been up to.

0:44:070:44:11

Earlier, we were in Chatham, Kent, where the world-famous dockyards

0:44:110:44:16

have been going through something of a regeneration process lately.

0:44:160:44:20

In the Lords Wood Lane area of Chatham

0:44:200:44:23

we caught up with Frank, a builder turned developer

0:44:230:44:26

with regeneration plans of his own for this plot of land.

0:44:260:44:30

He paid £87,000 for it.

0:44:300:44:32

It came with planning permission for a two-bed chalet bungalow,

0:44:320:44:35

but Frank had other ideas for the best way to take this place forward.

0:44:350:44:39

Initially, there's a bedroom downstairs

0:44:390:44:43

and there's one bedroom upstairs with an en-suite.

0:44:430:44:47

To the right of it,

0:44:470:44:48

there's a roof space which equally could be used as a third bedroom.

0:44:480:44:52

I might well pursue that in planning.

0:44:520:44:55

Frank reckoned it would cost between 80 to 90,000

0:44:550:44:58

and take six months of labour to do the new build.

0:44:580:45:02

However, when he started was very much going to depend on the state of the housing market.

0:45:020:45:08

Two years later we're back,

0:45:080:45:11

and the trees on the bank may have disappeared, but there's no sign of the house Frank wanted.

0:45:110:45:17

The foundations have been laid, but it's a sign of the times

0:45:170:45:20

that this development has become a victim of an unstable property market.

0:45:200:45:24

With the current economic turmoil, Frank wasn't willing to invest in a new build,

0:45:240:45:29

but he has got himself ready for that with new footings laid.

0:45:290:45:34

We've waited a year and a half, because I had other work to finish.

0:45:340:45:40

And then the planning would have lapsed,

0:45:400:45:42

so I chose to obviously start it and get it sorted,

0:45:420:45:47

so I wouldn't have to pay the planning again, basically.

0:45:470:45:50

So, getting the foundations dug and the footings laid

0:45:500:45:52

has meant that regardless of when the building work commences,

0:45:520:45:57

Frank won't have to reapply for planning permission.

0:45:570:46:01

# Time is on my side... #

0:46:010:46:08

In fact, what Frank has already done is the difficult part of any development,

0:46:080:46:13

and while we have no lovely rooms or bay windows to show you,

0:46:130:46:17

we've still got a floor plan for Frank to talk us through.

0:46:170:46:20

As we come in the front door we do a left into double doors, into the lounge.

0:46:210:46:26

Within the lounge we've got a nice bay window

0:46:260:46:30

with some patio doors out onto the patio, there.

0:46:300:46:32

We then come out into the hallway, come into the kitchen here,

0:46:320:46:37

which is a nice kitchen in regards to a window over the units over there.

0:46:370:46:41

Another patio door there.

0:46:410:46:44

Looking at the plans, the rest of the ground floor will have

0:46:450:46:49

a downstairs loo, a utility room and an en-suite bedroom.

0:46:490:46:53

Upstairs, along with the second bedroom,

0:46:530:46:55

Frank still believes there is space to create a third.

0:46:550:46:59

However, he still has to go through the planning process

0:46:590:47:02

to make this possible.

0:47:020:47:04

But not only will it add value to the development,

0:47:040:47:06

it would make the works worthwhile, because, for Frank, getting this far hasn't been easy.

0:47:060:47:11

To level the site, approximately 450 cubic yards of soil had to be removed.

0:47:110:47:17

# Can you dig it, oh yeah

0:47:170:47:21

# Can you dig it, oh yeah... #

0:47:210:47:23

Then, there was the bedrock to deal with.

0:47:230:47:26

# Can you dig it, oh yeah... #

0:47:260:47:28

When we started the site, not knowing what the ground conditions were like,

0:47:280:47:33

perhaps I should have had a soil sample, but I didn't.

0:47:330:47:37

I chose to go down the road of getting a five-tonne digger,

0:47:370:47:40

which would have normally gone through anything.

0:47:400:47:44

This was our problem.

0:47:440:47:46

Flint, and then clay within that, and there was loads of it, as you can see behind me.

0:47:460:47:51

We had to go through this in order to get to a decent footing, being chalk.

0:47:510:47:57

That's as we stand at the moment, and it has been a trial,

0:47:570:48:02

but without that digger, we wouldn't have been able to do it.

0:48:020:48:06

So, as Fred and Barney might say, it's yabba dabba do for the digger

0:48:060:48:09

and yabba dabba don't try it with a spade.

0:48:090:48:12

Seriously, though, on top of the year-and-a-half of nothing happening,

0:48:120:48:17

it's taken Frank and his team five months to get to this stage.

0:48:170:48:21

Up until now he's spent £20,000 on the development.

0:48:210:48:26

Adding that to his purchase price of 87,000

0:48:260:48:29

takes his total outlay so far to £107,000.

0:48:290:48:33

It's a lot of money to have sitting around,

0:48:330:48:35

so what are his immediate plans?

0:48:350:48:37

Once we've finished the site to the level we are at the moment

0:48:370:48:42

with the services in, button up the site

0:48:420:48:44

and then I would have said about eight months' time,

0:48:440:48:48

have a reassess of the situation and what the market is doing,

0:48:480:48:52

to whether we actually go ahead, or we prolong it a little longer.

0:48:520:48:57

So, Frank's planning to build after this coming winter,

0:48:580:49:02

but with an estimated build cost of 80 to 90,000

0:49:020:49:05

added to his purchase price of 87,000,

0:49:050:49:08

his possible spend could be as much as £177,000.

0:49:080:49:13

What do two local estate agents think of the long-term prospects for this site?

0:49:130:49:19

The site is a very good-sized site

0:49:190:49:21

and once the property is built it's going to look rather nice.

0:49:210:49:24

My first impressions of the site are good.

0:49:240:49:29

I think it will be a good-sized bungalow,

0:49:290:49:31

and there is garden space, and it is in a nice residential area.

0:49:310:49:35

Going by today's prices, what could the two or three-bed house sell for?

0:49:360:49:42

If I put this property up as a two-bedroom property,

0:49:420:49:44

I would be looking to market this property in the region of £210,000.

0:49:440:49:50

If this property was to be sold as a three-bedroom property,

0:49:500:49:53

I would be looking to market it in the region of £250,000.

0:49:530:49:56

If I was going to market it as a two-bed,

0:49:560:49:59

I'd be looking at marketing it at around £210,000, to £230,000.

0:49:590:50:04

If it was a three-bed, I'd be looking at about £250,000 for the property.

0:50:040:50:09

Erm, yes, in today's market that doesn't sound too bad,

0:50:090:50:13

but in regards to that I think possibly in a year's time, it might completely change.

0:50:130:50:20

It's difficult to judge how the market will be

0:50:200:50:22

when the land is finally developed,

0:50:220:50:25

but even if it doesn't reach the valuation Frank's after,

0:50:250:50:28

he will happily rent out the property.

0:50:280:50:30

While this site has had its challenges,

0:50:300:50:32

Frank's long experience in the building game means

0:50:320:50:35

he is prepared for the rough times as well as the smooth.

0:50:350:50:38

It's been very good through the years, hard work,

0:50:400:50:44

but it's been worth it in the end.

0:50:440:50:46

Absolutely live and die and love it to bits.

0:50:460:50:50

Back to Draycott near Derby now,

0:50:520:50:54

to check on the progress of this two-bedroom semi.

0:50:540:50:58

It was bought at auction for £68,000 by hockey-playing friends Nick, here on the left,

0:50:580:51:04

and David on the right.

0:51:040:51:06

The property was in a bit of a sorry state and needed knocking into shape.

0:51:060:51:10

But what wasn't so clear was who would be calling the shots on this renovation.

0:51:100:51:14

When it comes to making decisions on this place, how are you going to do that?

0:51:160:51:20

We'll discuss it for an hour, and then do what I want to do!

0:51:200:51:25

And then I'll throw him out the house!

0:51:250:51:28

Three and a half months later, we're back.

0:51:280:51:30

Nick is on hand for a post-match interview

0:51:300:51:33

to tell us if this has been a case of jolly hockey sticks,

0:51:330:51:36

or red cards all round.

0:51:360:51:38

Looks like the boys have played a blinder.

0:51:560:51:59

The old house has been relegated to history,

0:51:590:52:01

and been replaced by a striking refurbishment.

0:52:010:52:04

We rewired the whole house, replumbed the whole house,

0:52:070:52:12

took all the walls back to bare brick, replastered and skimmed.

0:52:120:52:16

Took three chimney breasts out, put a new bathroom floor in -

0:52:160:52:20

that was pretty smelly and horrible - all new windows and doors.

0:52:200:52:25

We've bricked up a door in the kitchen and made patio doors or French doors,

0:52:250:52:29

and we've rebuilt the back wall and fenced it.

0:52:290:52:32

It's an impressive list.

0:52:340:52:36

Upstairs, the biggest change has been rejigging the old two-bed layout,

0:52:360:52:41

to create a third bedroom and a new bathroom.

0:52:410:52:45

Nick is particularly happy with the improvements to the kitchen.

0:52:450:52:48

This was the original back door.

0:52:480:52:51

We took the back door out and its old frame,

0:52:510:52:53

we've replaced it with these bricks that we reclaimed from the brick wall and the chimney breasts.

0:52:530:52:58

It's quite a rustic look now and it fits in quite well.

0:52:580:53:01

Most of the work has been done by Nick's builder, Steve,

0:53:010:53:05

and Nick seems pretty pleased with the work.

0:53:050:53:08

I'm very proud of what Steve has achieved,

0:53:100:53:12

but the house was a ramshackled mess, to be fair,

0:53:120:53:14

and he's turned it into quite a nice, modern-looking house.

0:53:140:53:19

I'm proud of Steve. Steve works hard and David, and they're good lads.

0:53:190:53:24

We're a good team, I suppose.

0:53:240:53:26

It is a team. There's no I in team, is there?

0:53:260:53:30

In fact, builder Steve likes his handiwork so much,

0:53:300:53:33

he's decided to move in.

0:53:330:53:35

# Everyone's a winner, baby, That's the truth... #

0:53:350:53:38

The plan was to sell the house straightaway,

0:53:400:53:43

but my builder did all the work, his wife came and looked at it three or four times,

0:53:430:53:48

they're looking to move house, and because of the village location,

0:53:480:53:51

she quite liked it and she said, "Can we move in and rent it off you?"

0:53:510:53:55

I said yes, and in perhaps a year's time, they may mortgage the house and buy it off me altogether.

0:53:550:54:01

I think they'll stay here because they quite like it.

0:54:010:54:04

Where does that leave David, Nick's business partner and friend from the hockey club?

0:54:040:54:09

Right, well, David, we went halves originally, we did all the work,

0:54:110:54:15

we've paid all the money in, got everything sorted out.

0:54:150:54:18

David's a hockey colleague of mine and he wanted some money out of it,

0:54:180:54:23

I wanted to keep the property, so I've bought him out of this house.

0:54:230:54:27

We're in the process of looking for another house to do the same again.

0:54:270:54:31

It's quite a developing relationship.

0:54:310:54:33

So, the dream team lives on.

0:54:330:54:36

They were only a week over their two-month schedule

0:54:360:54:40

to complete the build, and there's still a bit of landscaping to do.

0:54:400:54:44

But what about the budget?

0:54:440:54:45

The original budget was £10,000 to £12,000,

0:54:460:54:49

but we took three chimney breasts out, re-skimmed those and made them safe,

0:54:490:54:54

we rewired the property and had to rejoist the floor in the bathroom,

0:54:540:54:58

which is now a bedroom, so that was extra, so it came in at 12,800.

0:54:580:55:01

A bit over budget but to be fair,

0:55:010:55:02

we did a lot more work than we envisaged originally.

0:55:020:55:05

Nick and David bought the property for £68,000,

0:55:050:55:09

so their total spend to date is just short of 81,000.

0:55:090:55:14

We asked two local property experts

0:55:140:55:17

to look around and give us their thoughts.

0:55:170:55:19

When I first saw the house it was fairly dire, to say the least.

0:55:220:55:26

It needed a total refurbishment project.

0:55:260:55:29

It needed somebody, actually, to show it a bit of love and TLC,

0:55:290:55:33

and that's exactly what's happened.

0:55:330:55:35

I am quite impressed with the property.

0:55:350:55:38

It's got a fantastic finish. It is almost like walking into a new house.

0:55:380:55:42

What do they think the place could fetch on the rental market?

0:55:420:55:46

I believe the property could achieve a rent of £525 per calendar month.

0:55:460:55:52

I think this has got a rental value of about £525 per calendar month.

0:55:520:55:56

I'm happy with that. I've already let it so we're fine with that.

0:55:560:55:59

And if Nick were to change his mind and decide to sell?

0:55:590:56:04

On today's market, I think the house has got a value, probably,

0:56:040:56:07

of between 100 and £105,000.

0:56:070:56:10

I think the property could achieve a sale price of £105,000.

0:56:100:56:15

Yeah, fine, that would be quite good. I'm happy with that. Yeah, lovely.

0:56:150:56:19

If he sold for 105,000, Nick could be looking at

0:56:190:56:23

a healthy pre-tax profit of around 24 grand, minus fees and expenses.

0:56:230:56:29

So what does the future hold for Nick and David?

0:56:290:56:31

The future for me and David is quite bright,

0:56:330:56:36

we're looking for another house as we speak,

0:56:360:56:38

hopefully bigger, a little bit better, a bigger budget, more work,

0:56:380:56:42

and we'll continue to go from strength to strength, hopefully.

0:56:420:56:46

Well, we'll have plenty more auction stories for you next time.

0:56:480:56:52

Some with happy endings, others with less fortunate outcomes.

0:56:520:56:56

You won't want to miss any of them,

0:56:560:56:58

so join us next time for more Homes Under The Hammer.

0:56:580:57:00

-We'll see you then.

-Goodbye.

-Goodbye.

0:57:000:57:02

Martin Roberts and Lucy Alexander visit a bungalow in Fife, a plot of land in Chatham and a two-bed semi in Derbyshire. All of these properties have been sold at auction - find out who bought them and what they paid when they went under the hammer.