0:00:02 > 0:00:07People buy properties for all sorts of different reasons - to live in or do up and sell on.
0:00:07 > 0:00:14- The main concern is value for money, so how do you do that?- Well, buy your next house under the hammer.
0:00:39 > 0:00:45- You need to do your homework to buy at auction. - But then you can get a real bargain.
0:00:45 > 0:00:49So here's a look at today's potential moneyspinners.
0:00:50 > 0:00:56We return to a Cornish house we first showed you in 2010 when it was a bit of a state.
0:00:56 > 0:01:00This whole really has not been thought through.
0:01:00 > 0:01:05There's a period property in London that ticks a lot of boxes.
0:01:05 > 0:01:09Sash windows - check. Ornate mouldings - check.
0:01:10 > 0:01:16And this Workington terrace needs a full refurbishment and there's only one place to start.
0:01:16 > 0:01:20That needs to be sorted out before anything else.
0:01:20 > 0:01:27All these properties went to auction. We'll find out who bought them and what they paid
0:01:27 > 0:01:30when they went under the hammer.
0:01:35 > 0:01:40Our first property is one we showed you a couple of years ago.
0:01:40 > 0:01:46The beautiful beaches and countryside in Cornwall make it highly desirable to live in.
0:01:48 > 0:01:54Many people purchase properties here as second homes, but there is a downside to that.
0:01:56 > 0:02:00The influx of second home owners buying properties in Cornwall
0:02:00 > 0:02:05has pushed prices out of the reach of many locals, but not here in Delabole
0:02:05 > 0:02:11where there's a fantastic opportunity. This is it - guide price of £125,000-£150,000.
0:02:11 > 0:02:16A five-bedroom detached house. You can't argue with that, can you?
0:02:16 > 0:02:22# I call it a bargain The best I ever had... #
0:02:22 > 0:02:25That's a lot of house for the price.
0:02:25 > 0:02:29You don't know what you're going to find inside a house like this.
0:02:29 > 0:02:34Very grand from the outside, but what's been done internally? Don't know yet,
0:02:34 > 0:02:38but a fairly cramped entrance, which I'm not too keen on.
0:02:38 > 0:02:44Through to a front sitting room there - making use of the local slate for the fireplace.
0:02:44 > 0:02:50And then what is going on? They've taken away the enclosure for the understairs cupboard.
0:02:50 > 0:02:54You've got this pillar. Doesn't work at all.
0:02:54 > 0:03:02Then through to another bit that looks like it's kind of been... well, manked about with.
0:03:02 > 0:03:08Two fireplaces in this room. The floors are different levels, which doesn't work.
0:03:08 > 0:03:14I like that they're stripped, but it just feels like they had a go and hadn't thought it through.
0:03:14 > 0:03:17However, what's that?
0:03:17 > 0:03:20# Looking through the window... #
0:03:21 > 0:03:25Yes, I know it has a garden, but not just any garden.
0:03:25 > 0:03:28It's a huge family one.
0:03:28 > 0:03:33With a massive car parking area to boot.
0:03:36 > 0:03:41So plenty of room to extend or maybe even develop.
0:03:41 > 0:03:47So great news out there, but unfortunately back in the house, the bad news continues.
0:03:47 > 0:03:49The kitchen is just a disaster.
0:03:49 > 0:03:55For a house like this it should be the focal point, big, family-friendly.
0:03:55 > 0:04:00As it is, disastrous units and this hotchpotch feeling.
0:04:00 > 0:04:04Look at this. A main beam going across here.
0:04:04 > 0:04:10You need to do something here. You need to build it out into that extension,
0:04:10 > 0:04:15to open up these walls, to create that central focus. Here.
0:04:15 > 0:04:19# It'll be just like starting over... #
0:04:19 > 0:04:23Upstairs, there are four main bedrooms,
0:04:26 > 0:04:28a box room
0:04:30 > 0:04:32and a bathroom.
0:04:32 > 0:04:37All are in need of upgrading and potentially some repair work
0:04:37 > 0:04:43if that damp's anything more than a few loose tiles or a problem with the flashing.
0:04:43 > 0:04:47Well, there you go. That just about sums this house up.
0:04:47 > 0:04:53The door, when you open it, goes straight into the stairs. They didn't bother to measure it.
0:04:53 > 0:05:00This whole house really has not been thought through, but it has potential to be a beautiful house.
0:05:00 > 0:05:03Let's find out who bought it.
0:05:03 > 0:05:08Big detached property. Five beds, big chunk of ground at the back.
0:05:08 > 0:05:12We know it's 150, don't we? Yes, we do. 150. 55.
0:05:12 > 0:05:15165. 170.
0:05:15 > 0:05:18175. 180? 180.
0:05:18 > 0:05:21He's still there. 185.
0:05:21 > 0:05:24190? 190 I want. 185.
0:05:26 > 0:05:27188. 188.
0:05:27 > 0:05:31190? 190. At 190. It's got to make 200.
0:05:31 > 0:05:33At 190. 190.
0:05:33 > 0:05:36Stood has it. Both sat are out.
0:05:36 > 0:05:38At 190. That's a lot of house.
0:05:38 > 0:05:42At 190. 190 once.
0:05:42 > 0:05:48190 twice. At 190. Falling short of 200, but at 190. Sure and done?
0:05:48 > 0:05:53At 190. You both missed it. Well done, sir. That's a lot of property.
0:05:53 > 0:05:57That winning bid of £190,000 came from Lee.
0:06:01 > 0:06:08He bought it with his partner Andrea. They live locally and have wanted to buy for some time.
0:06:10 > 0:06:15Lee's an electrician and Andrea is a research chemist.
0:06:15 > 0:06:17I met up with them to find out more.
0:06:19 > 0:06:21Lee, Andrea, well done.
0:06:21 > 0:06:27- Thanks very much.- Congratulations. It's a lovely house.- We think so.
0:06:27 > 0:06:33- Why did you want to buy it?- I've lived in the village all my life, wanted to stay in the village.
0:06:33 > 0:06:40- This seemed an ideal opportunity. In the future, maybe have children and it's a big family home.- Right.
0:06:40 > 0:06:46- What about your background, Andrea? - I've been in Cornwall about 10 years.
0:06:46 > 0:06:50I came down here for my first job after university.
0:06:50 > 0:06:55- I really like Cornwall and want to stay here now. - And tell me about you two.
0:06:55 > 0:07:00We've been together four years now. Met at the local village carnival...
0:07:00 > 0:07:05- Really?- We had a float, so, yeah. - Tell me more about that.
0:07:05 > 0:07:09I play football for the village and we do a carnival float.
0:07:09 > 0:07:15- I was a pirate.- Yeah. A pirate. - I had one too many and got chatting and the rest is history!
0:07:16 > 0:07:23- So he was wearing a pirate's outfit? - Yeah, I pulled a pirate! - You pulled a pirate!
0:07:23 > 0:07:30# I am a pirate, you are a princess We could sail the seven seas... #
0:07:30 > 0:07:35Well, shiver me timbers! Love at first sight through an eye patch!
0:07:35 > 0:07:40And it seems these two have had an eye on this house for a while now.
0:07:40 > 0:07:47- We've driven by two or three times and said, "That's a really nice house. It would suit us."- No!
0:07:47 > 0:07:52Yeah. I was at work and Andrea said, "There's an auction sign up!"
0:07:52 > 0:07:56- So it's meant to be.- Hopefully! - You made it happen.
0:07:58 > 0:08:03What's also meant to be is some drastic changes to the look of the place.
0:08:03 > 0:08:08- There is a bit of work to be done, isn't there?- There certainly is.
0:08:08 > 0:08:11- A little more than we thought.- Yeah.
0:08:11 > 0:08:15We'll change the downstairs layout. That's what we hope to do.
0:08:15 > 0:08:19We'll have to get a structural engineer to have a look at the walls
0:08:19 > 0:08:25but open it up, really. It's very boxy and we'd like to open the downstairs layout
0:08:25 > 0:08:29- and get a bit more light in. - How long's it going to take?
0:08:29 > 0:08:36Eh, we've put a minimum of six months. Four to six months to get...liveable.
0:08:36 > 0:08:41We're lucky we're not in a real rush to get in, but as soon as possible.
0:08:41 > 0:08:47Yeah. This is going to be our home for the next...5-10 years, so there's no hurry.
0:08:47 > 0:08:50We're not looking to make a profit.
0:08:50 > 0:08:55The original plan was to make the couple's future family home liveable in 4-6 months,
0:08:55 > 0:08:59finishing off the renovation once they'd moved in.
0:08:59 > 0:09:02In the meantime, they'd stay at Lee's mum's house.
0:09:05 > 0:09:09However, when we first returned two years later, they'd started work
0:09:09 > 0:09:11but still hadn't moved in.
0:09:16 > 0:09:21The sitting room was still very much a work in progress.
0:09:23 > 0:09:30There was a new extension at the back where work on a large kitchen dining area was still ongoing.
0:09:35 > 0:09:41The smaller front room was replastered and in need of redecoration,
0:09:41 > 0:09:45as were the four main bedrooms upstairs,
0:09:47 > 0:09:51although a new bathroom had been installed.
0:09:54 > 0:09:58The box room was no more and in its place was a stairwell
0:09:58 > 0:10:03leading to what would eventually be a master bedroom and en suite.
0:10:04 > 0:10:10Lee had been carrying out a lot of the work, fitting it around his full-time job as an electrician.
0:10:10 > 0:10:16But there was another very good reason why moving in was delayed.
0:10:17 > 0:10:20I had my daughter last year.
0:10:23 > 0:10:25She's now 11 months old.
0:10:25 > 0:10:29She's taken up a lot of my time.
0:10:29 > 0:10:35With the arrival of little Isabella, it wasn't surprising the schedule had run over.
0:10:35 > 0:10:38We initially said six months.
0:10:38 > 0:10:40But maybe that was a bit optimistic!
0:10:40 > 0:10:47We weren't going to do the extension originally, but we thought with the mess, let's do it all now
0:10:47 > 0:10:51and get it finished and if it takes two years, then it takes two years.
0:10:51 > 0:10:55We'll get it right and how we want it in the end.
0:11:00 > 0:11:04Later in the show we return for a second time to visit Lee, Andrea
0:11:04 > 0:11:08and little baby Isabella at their Cornwall property.
0:11:08 > 0:11:13Find out if they finally move into their much longed-for family home.
0:11:18 > 0:11:24I'm in a part of East London that has changed beyond all recognition in the last few years.
0:11:24 > 0:11:28Stratford - the transport hub for the 2012 Olympic Games.
0:11:28 > 0:11:34The redeveloped station has 10 Tube and railway lines and the capacity has been trebled
0:11:34 > 0:11:38to handle 120,000 passengers at peak times.
0:11:38 > 0:11:43And if shopping is your pastime, there's plenty of that here, too.
0:11:43 > 0:11:48It's also a good place to go shopping for property
0:11:48 > 0:11:50and that's exactly why I'm here.
0:11:51 > 0:11:57The auction lot I'm here to see is just up the road in Forest Gate.
0:11:57 > 0:12:00I'm here to see a period property
0:12:00 > 0:12:07and when I go out on these viewings I'm always hopeful the house will have some original features intact.
0:12:07 > 0:12:13Sash windows - check. Ornate mouldings - check. And a lovely bay window - check.
0:12:13 > 0:12:16That makes my heart sing.
0:12:16 > 0:12:20So the guide price is £175,000.
0:12:20 > 0:12:24But first orders - cut this bush back! Check!
0:12:24 > 0:12:26# I'm a real wild one... #
0:12:28 > 0:12:33This hedge may be a wild one, but my to do list is well and truly ticked.
0:12:33 > 0:12:39Sure, it'll take some time to tame, but will add to the kerb appeal of the house
0:12:39 > 0:12:41which looks in pretty good condition.
0:12:41 > 0:12:46Oh! Polystyrene ceiling tiles. I wasn't expecting those.
0:12:46 > 0:12:50They may be hiding some ceiling secrets. I'd get those down.
0:12:50 > 0:12:56It's a bit dark and oppressive, but once you choose some fresh, light reflective colours,
0:12:56 > 0:13:00it will work wonders. Look at that ceiling rose in here.
0:13:00 > 0:13:06You've got some lovely cornicing, architrave around the doors, nice high skirting boards.
0:13:06 > 0:13:10Fireplace, well, that's of the wrong era, but you can change it easily.
0:13:10 > 0:13:15A bit of an update needed, but overall another check.
0:13:15 > 0:13:21Unfortunately, you'll also have to write a few bank cheques to make this place habitable.
0:13:21 > 0:13:24# Money, money, money, money
0:13:24 > 0:13:30- # Money... # - But plenty of the original features have remained.
0:13:30 > 0:13:35A second reception room, another fireplace, sash window.
0:13:35 > 0:13:41I wonder what the floorboards will be like. They might well sand and wax up beautifully.
0:13:41 > 0:13:47'Next in line, a kitchen with cupboards and shelves that look years old. They'll have to go.
0:13:47 > 0:13:53'And more bad news, I'm afraid, because the bathroom and loo are downstairs in this house
0:13:53 > 0:14:00'that went to auction guided at £175,000, but could it be relocated upstairs?'
0:14:03 > 0:14:08Well, let's look upstairs and see if that is a possibility.
0:14:08 > 0:14:12Bathrooms off the kitchen always throw me into a bit of a spin.
0:14:12 > 0:14:17Now knocking this wall down, taking a piece of this bedroom, could be the answer.
0:14:17 > 0:14:23You could also use a little bit of this hallway. You won't have a window in the bathroom,
0:14:23 > 0:14:29but if there's ventilation, that is fine. A structural engineer can tell you if you can knock down this wall.
0:14:29 > 0:14:35You may need a supporting beam and you have to think of the cost implications
0:14:35 > 0:14:38and will it add any significant value?
0:14:38 > 0:14:44Some clever partition walls could make an upstairs bathroom possible and even without a bath
0:14:44 > 0:14:51a shower and toilet would add value. But you need to make sure you still have adequate access
0:14:51 > 0:14:54from the landing to the bedrooms.
0:14:59 > 0:15:05'Outside at the back of this house that went to auction guided at £175,000...
0:15:07 > 0:15:10'it's a bit of a jungle,
0:15:10 > 0:15:14'but tidy it up and it would be an added benefit for this property.
0:15:14 > 0:15:22'There's also the option of potentially extending the kitchen out to this area at the side.
0:15:23 > 0:15:28'To find out more about this property and its potential, we invited a local estate agent
0:15:28 > 0:15:32'to take a look around. What are her initial thoughts?'
0:15:32 > 0:15:40It's lovely wit the original features, but I think the wallpaper is from the original time as well!
0:15:40 > 0:15:43But it's a very nice family home.
0:15:43 > 0:15:47Could the location of the bathroom deter potential buyers?
0:15:47 > 0:15:54Downstairs bathrooms are a problem because people don't like going through the kitchen to them.
0:15:54 > 0:15:57It does put some people off.
0:15:57 > 0:16:03Let's talk figures. Assuming the house has a good refurbishment from top to bottom,
0:16:03 > 0:16:10- how much could it be worth? - Once the refurbishment is done, I'd put it on the market for £200,000.
0:16:10 > 0:16:13What rental return could it achieve?
0:16:13 > 0:16:18For a three-bedroom family home in this area,
0:16:18 > 0:16:23I would be looking for a rental of about £850 to £1,050 per month,
0:16:23 > 0:16:27depending on the quality of the refurbishment.
0:16:29 > 0:16:34A three-bedroom house in London that had a guide price of £175,000.
0:16:34 > 0:16:37That does represent good value in the capital,
0:16:37 > 0:16:42but this auction lot does require the works. Somebody fancied it.
0:16:42 > 0:16:45Let's find out who that was as we go to auction.
0:16:45 > 0:16:50Lot 32 is a mid-terraced house. So I invite your bids.
0:16:50 > 0:16:52I don't know.
0:16:52 > 0:16:56200? A house at Forest Gate? Must be 200.
0:16:57 > 0:17:00150. 155?
0:17:00 > 0:17:04- 180.- Where's that? How much?- 180.- 180.
0:17:04 > 0:17:06185, yeah?
0:17:06 > 0:17:09190. 195?
0:17:09 > 0:17:11200?
0:17:11 > 0:17:15195, with you. Looking for 200.
0:17:15 > 0:17:18196 by the door?
0:17:18 > 0:17:23195 down here. Looking for 196. 196.
0:17:23 > 0:17:26Sorry, didn't see your hand. 196. 197.
0:17:26 > 0:17:28198.
0:17:28 > 0:17:31198, sir? 197.
0:17:31 > 0:17:33Down here, it's going. 197.
0:17:33 > 0:17:39First time. Second time. Third and last time. All done?
0:17:39 > 0:17:41Sold. 197.
0:17:41 > 0:17:46That final successful bid of £197,000
0:17:46 > 0:17:50came from Alvin. He worked in retail before retiring.
0:17:50 > 0:17:55He also owns a property company with his brother of buy to lets.
0:17:55 > 0:17:59Alvin lived in Forest Gate when he first moved here from East Africa
0:17:59 > 0:18:05and was determined to get this house. I met up with him to find out his plans.
0:18:08 > 0:18:13Alvin, congratulations. You got it. What potential could you see in it?
0:18:13 > 0:18:17It's a big potential because I like doing these sort of things.
0:18:17 > 0:18:23- Are you a property developer? - Yeah, I've been doing it ever since the 1970s, you know.
0:18:23 > 0:18:30- How many properties have you done up? Lots and lots?- Lots. I used to do it all myself when I was young,
0:18:30 > 0:18:34labouring, skip filling. I still do it now as well,
0:18:34 > 0:18:38but I get help from my son and family and my brothers.
0:18:38 > 0:18:44Not content with owning and running a chain of supermarkets,
0:18:44 > 0:18:48Alvin wanted more and started to buy property as a sideline venture.
0:18:48 > 0:18:55Although he's retired from retail, he's not ready to put his property developing feet up just yet.
0:18:55 > 0:19:01- I want to know more about you. Where are you from?- East Africa, Kenya.
0:19:01 > 0:19:05- And when did you come to this country?- 1967.
0:19:05 > 0:19:09Me and my brother came over here at London Airport
0:19:09 > 0:19:16with £23 in my pocket. And I never, ever laid about. I always worked.
0:19:16 > 0:19:21- So you came to this country with £23 in your back pocket?- Yes.
0:19:21 > 0:19:27Wow! Tell me, what advice would you give to somebody starting out in this business?
0:19:27 > 0:19:32First, you need to work for it. That's what I'd give anyone as advice.
0:19:32 > 0:19:37- You certainly have worked for it. - Yes.- For many, many years. - Many years.
0:19:37 > 0:19:41# Money, money, money, money... #
0:19:42 > 0:19:49Alvin's experienced enough to know renovating property doesn't always guarantee you an overnight return.
0:19:49 > 0:19:55I suspect he's got a few hard months ahead with this one, so what's his master plan?
0:19:55 > 0:20:02We're going to knock everything down, plastering, plumbing, wiring, skimming...
0:20:02 > 0:20:09- Everything.- Are you keeping any of the beautiful period features this house has got?
0:20:09 > 0:20:14I don't think I'm going to keep anything. I'm going to take the fireplace out.
0:20:14 > 0:20:19The beautiful fireplace upstairs? I like that! And the ceiling rose?
0:20:19 > 0:20:24- I'm going to take it out. - No! Is it more straightforward to get rid of everything?
0:20:24 > 0:20:27That's it. And forget about it.
0:20:27 > 0:20:31# Am I that easy to forget? #
0:20:31 > 0:20:36That's a shame, but I understand where Alvin's coming from.
0:20:36 > 0:20:40As a developer, he's looking for straightforward, easy rooms.
0:20:40 > 0:20:45He doesn't intend to change any of the layout here. There will be no extensions
0:20:45 > 0:20:48and that bathroom is staying.
0:20:48 > 0:20:56- Who's going to be helping you? - It's the family and my son, who is an electrician.
0:20:56 > 0:21:00He does lots of other things as well now. And my brother.
0:21:00 > 0:21:05- And what about you? Will you be getting involved?- The donkey's work!
0:21:05 > 0:21:13- You won't be able to sit on the sidelines! You filled skips. - I used to, but I'm getting on!
0:21:13 > 0:21:21I still love doing it. Mostly sweeping up I do. I don't like stuff lying about.
0:21:21 > 0:21:24Here's hoping he's got a good handle on the finances
0:21:24 > 0:21:31so he sweeps up a nice profit and doesn't brush up against any problems.
0:21:31 > 0:21:37He thinks it's more likely he'll rent this out rather than sell on, but what budget has he got?
0:21:38 > 0:21:45I've got a budget of around about £20,000. Maybe less, maybe more, but that's what my target would be.
0:21:45 > 0:21:48And how long will it take you?
0:21:48 > 0:21:54- Three months, round about. - Alvin, good luck. I can't wait to see what this looks like.
0:21:54 > 0:21:57Thank you.
0:21:57 > 0:22:02Alvin started off with just £23 in his back pocket!
0:22:02 > 0:22:04I love it! Look at him now!
0:22:04 > 0:22:09It just shows how good, savvy business sense can pay off.
0:22:09 > 0:22:15But will he make a success of this and turn it around in three months? Find out later in the programme.
0:22:16 > 0:22:23Coming up: in Cumbria, first impressions of this mid-terrace are promising.
0:22:23 > 0:22:25OK. So far, so good.
0:22:26 > 0:22:31We return to London where Alvin was planning a complete makeover.
0:22:31 > 0:22:36Plumbing, wiring, skimming. Everything.
0:22:37 > 0:22:42But first, back in Cornwall, was it plain sailing for Lee and Andrea?
0:22:42 > 0:22:46- A lot more work than I expected! - A lot more than I expected!
0:22:48 > 0:22:55We're now going back to Delabole in Cornwall, where earlier we saw how, back in 2008,
0:22:55 > 0:23:01Lee and Andrea bought this five-bedroom detached house for £190,000.
0:23:01 > 0:23:05They planned to transform it into a family home.
0:23:13 > 0:23:18But when we returned the first time, they'd started work and the family
0:23:18 > 0:23:21with the birth of baby Isabella,
0:23:21 > 0:23:24but they still hadn't moved in.
0:23:24 > 0:23:31We weren't going to do the extension originally, then we thought with the mess and everything, let's do it
0:23:31 > 0:23:36and if it takes two years then it takes two years. So be it.
0:23:36 > 0:23:39We'll get it right and how we want it at the end.
0:23:43 > 0:23:47Well, it's now 12 months later and we're back to see the house.
0:23:47 > 0:23:51The good news is that the young family are finally about to move in.
0:23:57 > 0:24:03At the back, the kitchen dining room is now a wonderful living space for entertaining.
0:24:09 > 0:24:14There are great bi-fold doors that will open out onto a patio area.
0:24:14 > 0:24:18It's light, large and beautifully kitted out.
0:24:20 > 0:24:24And the big living room flows seamlessly from the kitchen area.
0:24:29 > 0:24:33What a difference from how the house used to be.
0:24:36 > 0:24:40The smaller front living room is now a study.
0:24:42 > 0:24:46And everywhere the quality of the work is truly outstanding.
0:24:49 > 0:24:53In the kitchen, we've put in some false beams. They're not structural.
0:24:53 > 0:24:57We put four of these in. These aided the plasterer,
0:24:57 > 0:25:04so he didn't have to skim the whole ceiling. We've gone for low energy and LED lighting.
0:25:04 > 0:25:09And in the kitchen we've got the granite, slate floors, underfloor heating.
0:25:09 > 0:25:12Water underfloor heating.
0:25:12 > 0:25:18And then the kitchen sort of flows through into a dining area where we've put this table. It seats eight
0:25:18 > 0:25:21but it's just set for six.
0:25:21 > 0:25:25We went for a tall rad here because of the shape of the room.
0:25:25 > 0:25:29With the slate floor, we'll run it out onto the patio area.
0:25:29 > 0:25:35These bi-fold doors go right back, so it will all be on the same level with the same flooring.
0:25:35 > 0:25:41That patio area sounds lovely and although it's still a bit of a building site outside,
0:25:41 > 0:25:46once the garden is landscaped it'll look fantastic.
0:25:46 > 0:25:53The seamless flow of the house is excellent. It's one of the things you instantly notice coming in.
0:25:55 > 0:26:02Upstairs, three of the four bedrooms have been decorated. Each has been done in a different colour scheme
0:26:02 > 0:26:06with co-ordinated fabrics and accessories.
0:26:13 > 0:26:20Bedroom four is baby Isabella's room. Pink pastel shades and all suitably girly.
0:26:23 > 0:26:28The fittings and luxury touches have now been completed in the bathroom.
0:26:28 > 0:26:33It's taken about three years from start to finish.
0:26:33 > 0:26:40During that time, Andrea and Lee lived with Lee's mum while doing the total refurbishment here.
0:26:40 > 0:26:44We pretty much took it back to the four walls, really.
0:26:44 > 0:26:48- Every wall was stripped back. - Every bit of plaster came off.
0:26:48 > 0:26:54- It was a bare shell. - A lot more work than I expected. - A lot more work than I expected!
0:26:54 > 0:26:56It's been well worth it, guys.
0:26:56 > 0:27:02Lee has installed all the pipework and plumbing for the fifth bedroom conversion up in the loft,
0:27:02 > 0:27:07but he and Andrea have decided to leave that until some time in the future.
0:27:07 > 0:27:12Meanwhile, they plan to have some relaxation time in the new lounge.
0:27:14 > 0:27:18The living room was originally two rooms.
0:27:18 > 0:27:24When we bought the house, the partition wall had already been taken out.
0:27:24 > 0:27:30We decided on engineered wood boards. They're more hard-wearing than real oak.
0:27:30 > 0:27:36We spent a long time looking for a wood burner to fit perfectly. I love the lounge.
0:27:36 > 0:27:39I think we'll spend a lot of time in here.
0:27:41 > 0:27:45The finish they've achieved throughout is outstanding.
0:27:45 > 0:27:52High spec fittings and equipment have been used everywhere. How much has it all cost?
0:27:52 > 0:27:59Initially I said £20,000 budget, but I would say we're close to £35,000, maybe a little more.
0:28:01 > 0:28:07With their £190,000 purchase price, that takes their total to £225,000.
0:28:07 > 0:28:13Of course, it would have been a lot more if Lee hadn't done most of the renovation himself.
0:28:13 > 0:28:16It's been very hard, the last three years.
0:28:16 > 0:28:23- Lee gets in from work, has his tea and then leaves again to work here. - Every Saturday and Sunday.
0:28:23 > 0:28:27And then to half-past ten, eleven every night for the majority of it.
0:28:27 > 0:28:34Lee's put in so much hard work here. We could never afford this if he hadn't done it himself.
0:28:34 > 0:28:40The amount of work Lee has done here is eye-watering and it goes on.
0:28:40 > 0:28:45He also installed a fully tiled wet room by the back door next to the kitchen.
0:28:45 > 0:28:48Was the interior design a joint decision?
0:28:48 > 0:28:53The bedrooms, I mainly picked the colour schemes for.
0:28:53 > 0:28:56We decided on three colour schemes -
0:28:56 > 0:29:00the silver room, the gold room and the purple room.
0:29:00 > 0:29:02And we picked curtains and bedding
0:29:02 > 0:29:06and throws around those colour schemes.
0:29:06 > 0:29:09Colourful. What about the kitchen?
0:29:09 > 0:29:14It was really my decision because we had the grey floor with the black granite worktop.
0:29:14 > 0:29:20It was looking a bit bland, so we tried to incorporate a bit of colour with the tiling above the range
0:29:20 > 0:29:24and some of the pots are orange. We'll incorporate that as well.
0:29:24 > 0:29:27They've created a really beautiful family home.
0:29:27 > 0:29:31Now the work is complete, which one room are they most fond of?
0:29:31 > 0:29:36My favourite room, I would say, would be the study, the second lounge.
0:29:36 > 0:29:39That's turned out really well.
0:29:39 > 0:29:41My favourite room is the kitchen-diner.
0:29:41 > 0:29:48We haven't been able to sit at a table for three years as a family and that would be nice.
0:29:48 > 0:29:50We've waited so long to have our own home.
0:29:50 > 0:29:55It will just be amazing when we actually get in and start living here.
0:29:55 > 0:30:00Time to see what two local estate agents think of this project
0:30:00 > 0:30:02that's taken three years to finish.
0:30:02 > 0:30:05I think the biggest appeal to me
0:30:05 > 0:30:07is the kitchen-breakfast room.
0:30:07 > 0:30:10They've extended out from the rear elevation
0:30:10 > 0:30:14and it makes it into a real family area that will appeal to everyone.
0:30:14 > 0:30:18The kitchen-dining area is fabulous, particularly the way it flows.
0:30:18 > 0:30:22I love the multi-coloured tiles and use of colour in the kitchen.
0:30:22 > 0:30:28The living room is to die for. The wood-burner is the focal point when you enter the room.
0:30:28 > 0:30:32You don't get many done to this workmanship and standard.
0:30:32 > 0:30:35It's one of the best I've seen in a long while.
0:30:35 > 0:30:41A lot of extras have been added to this property, the quality doors, granite worktops,
0:30:41 > 0:30:43underfloor heating. It's stunning.
0:30:43 > 0:30:48But how much do the property experts think it's now worth?
0:30:48 > 0:30:54Remember, Lee and Andrea spent £225,000 in total on their home.
0:30:54 > 0:31:00If we were to put the property on the market at the current time, we'd hope to achieve about £300,000.
0:31:00 > 0:31:04I would put the property on the market for somewhere around £315,000
0:31:06 > 0:31:12Well, those valuations of between 300,000 and 315,000 could produce a gross profit
0:31:12 > 0:31:16of 75,000 to 90,000 before the usual selling expenses.
0:31:19 > 0:31:22I would have expected around the 280 mark maybe,
0:31:22 > 0:31:27so delighted if we ever did sell and we could get that sort of figure. Fantastic.
0:31:27 > 0:31:32Well, after three long years, that's the last thought on their mind.
0:31:32 > 0:31:35It must be exciting to be only days from moving in now.
0:31:35 > 0:31:41- I can't wait.- Yeah. - It's been a long time coming, so really looking forward to it.
0:31:42 > 0:31:46And Isabella knows exactly which her favourite room is.
0:31:46 > 0:31:52- I really like my room. - I'm not surprised, Isabella. Daddy and Mummy have done a great job.
0:31:59 > 0:32:03I'm in the town of Workington on the West Cumbrian coastal plain,
0:32:03 > 0:32:07once famous for its thriving steel industry.
0:32:07 > 0:32:11# And the big steel rail gonna carry me home to the one I love... #
0:32:13 > 0:32:15The town oozes industrial history.
0:32:15 > 0:32:22The trappings of modern engineering make an appearance in the backdrop of the Lake District hills.
0:32:22 > 0:32:27Workington was once famous as the place where they produced railway tracks
0:32:27 > 0:32:33which were exported around the world. It was once said that Workington held the world together.
0:32:33 > 0:32:38This is it. It's a two-bedroom mid-terrace. It had a guide price of 45,000 to 55,000 quid.
0:32:38 > 0:32:40Let's take a look.
0:32:44 > 0:32:49Like the railways, these sturdy old houses stand the test of time.
0:32:49 > 0:32:55By the looks of it, this one is no exception, but appearances can be deceptive.
0:32:55 > 0:32:57So what have we got?
0:32:57 > 0:33:01Nice to have that little entrance porch. We like that.
0:33:01 > 0:33:06Radiator there. It's a small thing, but at least it means there's central heating.
0:33:06 > 0:33:10Front living room there, stairs up to your bedrooms.
0:33:10 > 0:33:14I like the layout already, then through into your rear living room.
0:33:14 > 0:33:19Good sized space. A bit of a dated old fireplace, probably want to get rid of that.
0:33:19 > 0:33:21OK, so far, so good,
0:33:21 > 0:33:23but there's more.
0:33:23 > 0:33:29Through here, what I reckon is an extension contains the kitchen.
0:33:29 > 0:33:32It's not a bad size.
0:33:32 > 0:33:37Clearly, the units need to be sorted out and you're fairly limited in terms of the layout
0:33:37 > 0:33:42because it's actually, in reality, a corridor through
0:33:42 > 0:33:47to a bit of a downside - the toilet and the bathroom,
0:33:47 > 0:33:50the only ones in the property, not ideal.
0:33:50 > 0:33:53But from the front, it doesn't look that big.
0:33:53 > 0:33:55Come in here... It's a big property.
0:33:58 > 0:34:04A big property and a warm one too as it benefits from gas central heating and double glazing,
0:34:04 > 0:34:08so a couple of obvious costs avoided there,
0:34:08 > 0:34:13but I'd always advise getting the wiring and the boiler checked out.
0:34:13 > 0:34:17This mid-terraced house went to auction guided at 45,000 to 55,000.
0:34:20 > 0:34:25Up a narrow set of stairs, there are two decent-sized bedrooms -
0:34:25 > 0:34:28one at the front and one at the back.
0:34:28 > 0:34:32Both get plenty of light, but the stairs don't stop on the landing.
0:34:34 > 0:34:38So what was a fairly standard house
0:34:38 > 0:34:43suddenly becomes very exciting because you've got this third floor.
0:34:43 > 0:34:47Obviously, this was the attic at some point and it's been converted.
0:34:47 > 0:34:52Whether or not it's been converted to building regulations standards, I don't know.
0:34:52 > 0:34:56You'd have to check the floorboards. It seems reasonably solid.
0:34:56 > 0:34:59That staircase actually isn't too bad,
0:34:59 > 0:35:05so possibly I'd err on the side of saying this could actually be used as a bedroom.
0:35:05 > 0:35:11My only concern would be whether or not it's got the correct fire escape provisions in place.
0:35:11 > 0:35:14All pretty good, apart from that.
0:35:14 > 0:35:18As you can see, a few bits of damp.
0:35:18 > 0:35:21Lath and plaster on the ceiling here and...
0:35:22 > 0:35:26Right, so clearly there's something going wrong there.
0:35:26 > 0:35:30That needs to be sorted out before anything else.
0:35:30 > 0:35:36It could be relatively easy to do or not, but it definitely needs checking out.
0:35:36 > 0:35:41Sort that out and you've got a very acceptable, spacious home.
0:35:41 > 0:35:47At the rear of the property, you might have expected a courtyard or, hopefully, a garden,
0:35:47 > 0:35:50but there is just this hugely long extension.
0:35:50 > 0:35:56It goes all the way from the rear of the house the full depth of this rear area.
0:35:56 > 0:36:01It's where the kitchen is and it does provide fantastic extra space for the property.
0:36:01 > 0:36:07Right at the back, though, is something which is on the other side of the downstairs loo.
0:36:07 > 0:36:12It's a bit of a waste of space, so I'm wondering whether or not you could block this up
0:36:12 > 0:36:15to create a bigger space in there.
0:36:15 > 0:36:21I don't know if this has been built correctly with a damp-proof course and a double course of bricks.
0:36:21 > 0:36:26Either way, investigate it and it does give the house amazing extra space.
0:36:26 > 0:36:30An elongated house that could just go on and on.
0:36:30 > 0:36:33To find out more about the options here,
0:36:33 > 0:36:38we asked the auctioneer who sold it for his thoughts on the place.
0:36:38 > 0:36:40I think it's in dated condition.
0:36:40 > 0:36:42It's been rented out for some time.
0:36:42 > 0:36:45It needs some money spent on it
0:36:45 > 0:36:50and you would spend more if you were going to re-sell or live in it.
0:36:50 > 0:36:54The rear extension is single-skin brick, so that needs attention,
0:36:54 > 0:36:58and general modernisation throughout the rest of the property.
0:36:58 > 0:37:02Given all of that, what's the likely rental income here?
0:37:04 > 0:37:09A property like this with a little bit of work done would get £395 per calendar month.
0:37:09 > 0:37:15So once renovated, is it a similar story if you were to put it up for sale?
0:37:16 > 0:37:18On the sales market, this property,
0:37:18 > 0:37:25when refurbished, would probably re-sell for between £75,000 and £80,000.
0:37:25 > 0:37:28There is some money needed to sort this place out,
0:37:28 > 0:37:33but I think it could deliver a good return on the investment of whoever bought it.
0:37:33 > 0:37:37Let's see who that was when it went under the hammer.
0:37:37 > 0:37:41Two-bed terraced house with attic room, two reception rooms,
0:37:41 > 0:37:46kitchen, bathroom, central heating and double glazing. This is Lot 5.
0:37:46 > 0:37:4845, anyone?
0:37:48 > 0:37:5245, I have. In the corner at £45,000.
0:37:52 > 0:37:5546, anyone? 46, I have. And 47.
0:37:55 > 0:37:5848. 49.
0:37:58 > 0:38:0149, I've got.
0:38:01 > 0:38:04At £49,000, are we done? 50, I have.
0:38:04 > 0:38:07And 1? 1, I've got.
0:38:07 > 0:38:09And 2?
0:38:09 > 0:38:12At 51,000 in the corner.
0:38:12 > 0:38:15It's against the phone at 51.
0:38:15 > 0:38:1752. With the phone at 52.
0:38:17 > 0:38:19Here to sell, 53.
0:38:19 > 0:38:22New position at 53.
0:38:22 > 0:38:26It's with you, sir, at 53. It's against you in the corner
0:38:26 > 0:38:28at £53,000.
0:38:28 > 0:38:3253,250... 53,250?!
0:38:32 > 0:38:34Too early for 250s.
0:38:34 > 0:38:3953 and a half? 53 and a half. I'm taking that. 54, sir?
0:38:39 > 0:38:4254, I've got. Back with you.
0:38:42 > 0:38:4454 and a half?
0:38:44 > 0:38:4554...
0:38:45 > 0:38:49You're out. At £54,000 then, first time...
0:38:50 > 0:38:52At 54 second time...
0:38:52 > 0:38:54I'll take 250!
0:38:54 > 0:38:56LAUGHTER
0:38:56 > 0:39:00At 54, third and final time.
0:39:00 > 0:39:02Sold. Well done.
0:39:02 > 0:39:07'That final successful bid of £54,000 was made by two new business partners -
0:39:07 > 0:39:11'David in yellow and Jim in the middle there in white.
0:39:11 > 0:39:17'It's their first project together and they've invested equally in the project.
0:39:17 > 0:39:19'David is a full-time property developer.
0:39:19 > 0:39:25'Jim is a qualified electrician and has also had a property maintenance company for 11 years.
0:39:25 > 0:39:31'I met up with Jim back at the house to find out about their plans.'
0:39:31 > 0:39:36- Jim, lovely to meet you.- Hiya. - Tell me why you wanted to buy this house.
0:39:36 > 0:39:41We've been doing this type of work for some time now, property maintenance,
0:39:41 > 0:39:46both for ourselves and the local housing association.
0:39:46 > 0:39:48Work's a bit quiet at the moment,
0:39:48 > 0:39:54so we thought we'd give it a go, see if we can make any money to keep the business ticking over.
0:39:54 > 0:39:58- Have you got a team of people? - There's just two of us now.
0:39:58 > 0:40:01- It'll be primarily you two taking this on?- Yeah.
0:40:01 > 0:40:04So tell me, why this particular house?
0:40:04 > 0:40:08Well, we just thought a good location close to the town centre
0:40:08 > 0:40:13and we thought it's probably ideal for a first-time buyer.
0:40:13 > 0:40:17- So the basic plan then is to do it up and sell it on?- Yeah, yeah.
0:40:17 > 0:40:20So talk me through the finances then.
0:40:20 > 0:40:24What do you hope you might be able to get back on it?
0:40:24 > 0:40:28We're looking round about 70,000, 72,000, hopefully,
0:40:28 > 0:40:30spending round about 6,000 on it.
0:40:30 > 0:40:34- So a bit of a profit in there for you?- Hopefully.
0:40:35 > 0:40:39'So had Jim and Dave seen the house before they bid at auction?'
0:40:40 > 0:40:42No.
0:40:42 > 0:40:44Are you saying, "You fool"?
0:40:46 > 0:40:52We did look at the outside. We did look in another one which we were interested in.
0:40:52 > 0:40:56At the last minute, we came to look at this one, but just the outside.
0:40:56 > 0:41:02The one we were looking at we thought went for too high a price so we didn't go for that one.
0:41:02 > 0:41:09- So a shock or a pleasant surprise when you first walked through the door?- I'm quite happy with it.
0:41:09 > 0:41:13'Well, I would never advise buying blind at the best of times
0:41:13 > 0:41:18'and certainly not on the first joint venture with a new business partner.
0:41:18 > 0:41:25'Jim and David plan to do the work themselves, so what's their plan for the house?'
0:41:25 > 0:41:29Obviously, the paper, etcetera, needs stripped off.
0:41:29 > 0:41:32The main job will be moving the bathroom into the first bedroom.
0:41:32 > 0:41:38- Right.- We'll move that, extend the kitchen, possibly try and keep the downstairs toilet.
0:41:38 > 0:41:43At the expense of room in the bedroom, but not the whole bedroom?
0:41:43 > 0:41:47It will reduce that bedroom to a single bedroom and a bathroom.
0:41:47 > 0:41:51There'll still be a double bedroom upstairs and one in the attic.
0:41:51 > 0:41:57In terms of the attic room, are you satisfied that that's a proper room that can be described as a bedroom?
0:41:57 > 0:41:59- Yes.- It meets building regulations?
0:41:59 > 0:42:06It may not meet them at the moment, but we'll have to have a look at that. It's certainly big enough.
0:42:06 > 0:42:10- What's the timescale for sorting it out?- About six weeks, hopefully.
0:42:10 > 0:42:16- Congratulations.- Cheers.- Good luck with it. We look forward to seeing how you get on.- That's great.
0:42:16 > 0:42:22Well, Jim seems pretty confident that he'll be able to sort this place out on that budget,
0:42:22 > 0:42:29but six grand and six weeks sounds like some fairly low numbers to me.
0:42:29 > 0:42:32Let's find out how he gets on later in the show.
0:42:35 > 0:42:38It's been a while since we saw those properties.
0:42:38 > 0:42:44- Do they look any different? Has all that time and money been well spent? - Let's go back and find out.
0:42:44 > 0:42:48'Earlier in the programme, we were in Forest Gate, East London,
0:42:48 > 0:42:54'where hidden away behind this hedge was a Victorian terrace, desperate to be seen.
0:42:54 > 0:42:57'It was bought for 197,000 by Alvin.
0:42:57 > 0:43:00'He's retired after years in the retail industry,
0:43:00 > 0:43:05'but still owns a company with a portfolio of buy-to-let properties.
0:43:06 > 0:43:10'The house needed a full refurbishment,
0:43:10 > 0:43:15'but Alvin wasn't as keen as me on the character features.'
0:43:15 > 0:43:20I don't think I'll keep anything. I'll take the chimney, fireplace out
0:43:20 > 0:43:26- I like that fireplace. And the ceiling rose in the lounge?- I'm going to take it out.- Really?- Yeah.
0:43:26 > 0:43:30- Is it easier just to get rid of everything?- Yeah.
0:43:30 > 0:43:33There was an overgrown garden to go with the front hedge.
0:43:33 > 0:43:37Alvin planned to add the property to his buy-to-let portfolio
0:43:37 > 0:43:44and he'd supervise the work that his son Raj, an electrician, and the other tradesmen would do.
0:43:45 > 0:43:50It's now three and a half months later and the hedge has gone.
0:43:50 > 0:43:57We meet Alvin again back at the house that now has replacement windows and a new paint job.
0:44:00 > 0:44:04The bay-fronted living room has a laminate floor
0:44:04 > 0:44:06and the fireplace has gone...
0:44:09 > 0:44:13..although the staircase does retain its original character.
0:44:16 > 0:44:21But there's no fire left in the dining room or the original door.
0:44:23 > 0:44:26The bathroom and loo are still downstairs.
0:44:26 > 0:44:32There's a new suite, although Alvin did retain the old cast-iron bath which looks great.
0:44:34 > 0:44:38But nothing survived in the kitchen. Everything is new
0:44:38 > 0:44:43and Alvin was able to fit everything in without any layout changes.
0:44:45 > 0:44:51I was thinking of extending the kitchen further down there, but I changed my mind.
0:44:51 > 0:44:57I found it bigger than what it was before because this water tank was taking all this room.
0:44:57 > 0:45:01We took all that out, knocked it dow and refurbished the whole thing.
0:45:01 > 0:45:05I really like all this tiling and the floor.
0:45:05 > 0:45:09I think the kitchen is one of the prime things in this house.
0:45:09 > 0:45:13Most of the work in the kitchen was done by my son.
0:45:13 > 0:45:18Alvin's son Raj is a qualified electrician, but did a lot more than just the wiring.
0:45:18 > 0:45:24We hacked off all the old plaster, re-plastered everything, new central heating, new wiring.
0:45:24 > 0:45:28I did the skirting, kitchen fitting, bits of tiling.
0:45:28 > 0:45:31Upstairs, the re-plastered walls look great
0:45:31 > 0:45:37and the gloss paintwork and neutral colours really open up this old house.
0:45:42 > 0:45:45But I'm sad to see none of the fireplaces survived.
0:45:47 > 0:45:51Alvin has been refurbishing properties for years.
0:45:51 > 0:45:53He used to do all of the labouring,
0:45:53 > 0:45:56but now project-manages his team.
0:45:57 > 0:46:01So do Raj and all the others find him a tough task-master?
0:46:04 > 0:46:11He's not bad. He pushes us about, but we get the work done, you know, as quick as we can.
0:46:11 > 0:46:14Well, yes, time is money
0:46:14 > 0:46:18and a quick turnaround means the rental income comes in faster.
0:46:18 > 0:46:24Alvin's been supervising the work, but he told me he'd be busy with the broom, sweeping up the mess.
0:46:24 > 0:46:26How did that go?
0:46:26 > 0:46:29I didn't do much. It was too dirty for me.
0:46:29 > 0:46:32Clearing the garden was a big job,
0:46:32 > 0:46:36but several skips later and you can now see what a decent size it is.
0:46:38 > 0:46:42Alvin's costs have been reduced as Raj has done the electrical work,
0:46:42 > 0:46:49but having to plasterboard the entire house and install central heating must have impacted
0:46:49 > 0:46:51on Alvin's £20,000 budget.
0:46:51 > 0:46:53We went slightly over.
0:46:53 > 0:46:59With the legal fees and all that, we went to about 26-5, maybe 27.
0:46:59 > 0:47:03With the 197,000 he paid at auction,
0:47:03 > 0:47:07that takes Alvin's total outlay to £224,000.
0:47:07 > 0:47:10So have plans for the house stayed the same?
0:47:12 > 0:47:15We're going to let it out. We've got tenants waiting.
0:47:15 > 0:47:20But if someone comes with lots of money, I might sell it.
0:47:20 > 0:47:23A couple of local estate agents are on their way
0:47:23 > 0:47:25to take a look around.
0:47:28 > 0:47:33Maybe their valuations will change Alvin's intentions.
0:47:33 > 0:47:35Everything is light and fresh.
0:47:35 > 0:47:39The clean walls, kitchen and bathroo will appeal to a lot of purchasers.
0:47:39 > 0:47:42I think it's been done up to a high standard.
0:47:42 > 0:47:46I think the new kitchen has made a big difference to the property
0:47:46 > 0:47:49and all of the new flooring.
0:47:49 > 0:47:55So will the property be worth more than the 224,000 that Alvin has spent so far?
0:47:55 > 0:48:02If I was putting this property on the market for sale, I'd put the property on at £275,000.
0:48:02 > 0:48:06I'd place this property on the marke with an asking price of £275,000.
0:48:06 > 0:48:08Well, they both agree.
0:48:08 > 0:48:13That valuation would produce a gross profit of 51,000
0:48:13 > 0:48:15before the usual selling expenses.
0:48:16 > 0:48:19That's good. Wonderful.
0:48:21 > 0:48:25I don't think I'm going to sell it, but it's a wonderful offer.
0:48:25 > 0:48:28I was expecting 245, something like that.
0:48:28 > 0:48:33What rental income do the agents think this place could generate?
0:48:33 > 0:48:36If I was putting this property on the market for rental,
0:48:36 > 0:48:41I would put it on at £1,250 to £1,300 per calendar month.
0:48:41 > 0:48:47If I was to put this property for rent, I would expect between £1,200 and £1,300 per calendar month.
0:48:47 > 0:48:52That is right. That's what the other agent that we use offered, that much
0:48:52 > 0:48:58So I'm quite pleased with the property value and the rental market as well.
0:48:58 > 0:49:01I'll have to sit down and think about it now.
0:49:02 > 0:49:08How has Alvin found this refurbishment and what is he up to next?
0:49:08 > 0:49:13I really enjoyed doing the property. I might move to the next one if it comes on the market.
0:49:13 > 0:49:17There's no stopping him, but after years of property developing,
0:49:17 > 0:49:22can he now see himself kicking back and retiring?
0:49:22 > 0:49:27At the moment, I've got no intention of stopping, but one day maybe...
0:49:27 > 0:49:29I might hang the boots.
0:49:35 > 0:49:40'We return now to Workington where, earlier in the programme,
0:49:40 > 0:49:45'this mid-terraced house was bought for £54,000 by two new business partners -
0:49:45 > 0:49:50'David, a full-time developer, in yellow, and Jim next to him in the middle.
0:49:50 > 0:49:56'Jim is a qualified electrician who has had a property maintenance company for 11 years.
0:49:56 > 0:50:02'They decided to go 50/50 and buy this house together as a test run for a potential joint business.
0:50:05 > 0:50:09'It was Jim who I met back at the property.
0:50:09 > 0:50:12'His plan was to move the bathroom upstairs
0:50:12 > 0:50:16'which meant reducing the size of one of two bedrooms,
0:50:16 > 0:50:19'but there was still the attic room up top.'
0:50:19 > 0:50:25In terms of the attic room, are you satisfied that that's a proper room that can be described as a bedroom?
0:50:25 > 0:50:27- Yes.- It meets building regulations?
0:50:27 > 0:50:32It may not meet them at the moment, but it's certainly big enough.
0:50:35 > 0:50:41It's now five months later and it's David's turn to show us round the property as Jim's been unwell.
0:50:44 > 0:50:48At the back of the house, the narrow kitchen has been completely refitted
0:50:48 > 0:50:52with new appliances and a striking tiled wall.
0:50:57 > 0:51:02The front living room has lost the fireplace, but the chimney breast remains.
0:51:02 > 0:51:06The embossed wallpaper has gone from the rear reception room.
0:51:10 > 0:51:16And you get a great view of the restored garden path that is now bordered with reclaimed duck stones.
0:51:18 > 0:51:22But it's the kitchen that has taken most of the effort.
0:51:22 > 0:51:28Originally, the kitchen was in three parts. One was a bathroom, one was a toilet, then the small kitchen,
0:51:28 > 0:51:32but the main problem was the four-inch wall
0:51:32 > 0:51:37which was the flank wall, so we had to do some major work to the wall.
0:51:37 > 0:51:41And from its original concept, the kitchen has turned out fabulous,
0:51:41 > 0:51:44compared to what it was.
0:51:46 > 0:51:50I couldn't agree more and it means that upstairs now has a bathroom.
0:51:56 > 0:52:00It's been created by dividing the former rear bedroom in half.
0:52:04 > 0:52:08There is still a single room at the back with a new window.
0:52:12 > 0:52:15The front bedroom is a good-sized double.
0:52:18 > 0:52:22Plus at the top of the house, there is now a third bedroom
0:52:22 > 0:52:26as the planning and building regulations were sorted out.
0:52:29 > 0:52:35The third bedroom - this was a real tease as we had to take down all the plasterboard,
0:52:35 > 0:52:39so we could get insulation. That was our first problem.
0:52:39 > 0:52:42The second one was moving the stairs
0:52:42 > 0:52:48Originally, the stairs came up here and we've had to move those about three foot this way
0:52:48 > 0:52:52to make sure that we could get the right height on the treads,
0:52:52 > 0:52:55so we could use it as a bedroom and make it safe.
0:52:57 > 0:53:00The house has been re-wired and re-plumbed
0:53:00 > 0:53:05and a new boiler has been installed at the back next to the downstairs loo.
0:53:05 > 0:53:11Their first joint project was going well, but when Jim was taken ill, David had to step up to the plate.
0:53:11 > 0:53:15I've known Jim for some time. We've worked on various properties.
0:53:15 > 0:53:19We were quite chuffed about doing this first one together,
0:53:19 > 0:53:21but unfortunately, he took quite badly.
0:53:21 > 0:53:28It was best for the project if I actually bought him out of his interest, so I did that,
0:53:28 > 0:53:34then throughout the project, I've kept in touch and he's helped m with the re-wiring
0:53:34 > 0:53:40because he's a qualified electrician and got a good reputation, so you've got to use him.
0:53:40 > 0:53:45Apart from Jim's expertise, David also employed a plumber and decorator.
0:53:45 > 0:53:49So what was the final bill?
0:53:49 > 0:53:51The original budget was £6,000,
0:53:51 > 0:53:56but ours has eventually cost about £10,250.
0:53:56 > 0:54:02But in that, we had extra conveyancing fees to make the transfer
0:54:02 > 0:54:06and also the extra cost of electrics and plumbing works.
0:54:06 > 0:54:09That spend added to the purchase price of 54,000
0:54:09 > 0:54:14means a total outlay here of just over 64,000.
0:54:14 > 0:54:20Now that David has bought out Jim's share, will this investment prove a good one?
0:54:21 > 0:54:25Let's hear what two local property experts think
0:54:25 > 0:54:27of this refurbished end terrace.
0:54:27 > 0:54:30I think it's a good spread of accommodation.
0:54:30 > 0:54:33The two reception rooms are of a decent size
0:54:33 > 0:54:36and the kitchen having been enlarged is a bonus.
0:54:36 > 0:54:40He's done really well getting the bathroom upstairs,
0:54:40 > 0:54:44retaining a downstairs toilet, whilst keeping three bedrooms.
0:54:44 > 0:54:50I think because there's good head height up there and it's a nice, light bedroom, it'll be very useful.
0:54:50 > 0:54:54David says he always sells the properties that he's refurbished,
0:54:54 > 0:55:01but what income do the estate agents think it could generate if he was to put it up for rent instead?
0:55:01 > 0:55:05At this point, I would rent this out for £425 per calendar month.
0:55:05 > 0:55:11I think he would probably achieve a monthly income of about £395 per calendar month.
0:55:11 > 0:55:15That's a yield of between 7 and 8%.
0:55:15 > 0:55:18Could David be tempted to hang on to this one?
0:55:18 > 0:55:21It's a lot better than I expected, to be honest,
0:55:21 > 0:55:24but no, I still wish to sell.
0:55:24 > 0:55:27Sounds like a plan to me.
0:55:27 > 0:55:33David's total outlay here is just over 64,000, but can he make a profit on the resale market?
0:55:34 > 0:55:40I think you would expect to achieve a figure between £75,000 and £80,000.
0:55:40 > 0:55:47I'd put the property on to the market for £87,500 to look to achieve approximately £85,000.
0:55:48 > 0:55:54That valuation range from 75,000 to 85,000 would give David a gross profit
0:55:54 > 0:56:00before the usual selling expenses of between around £11,000 and £21,000.
0:56:00 > 0:56:06That's good. That's good, yes. I'll definitely be selling. I'll be definitely selling.
0:56:06 > 0:56:10David has done a great job turning this property around
0:56:10 > 0:56:13and turning a profit in the process.
0:56:13 > 0:56:18He has every intention of keeping his working relationship with Jim going.
0:56:18 > 0:56:22We've bought...or I've bought a hotel in Egremont.
0:56:22 > 0:56:28Jim will definitely be doing the wiring in the hotel because you can only really trust Jim.
0:56:29 > 0:56:34And trust is vital when it comes to a solid business partnership.
0:56:34 > 0:56:37We wish them both well for the future.
0:56:37 > 0:56:39# I wish you well
0:56:40 > 0:56:43# I wish you well... #
0:56:48 > 0:56:53We hope you've enjoyed watching Homes Under The Hammer and learnt some useful lessons.
0:56:53 > 0:57:00- We'll see you next time for more hot properties and some that turn out to be lukewarm.- See you then.- Goodbye.
0:57:16 > 0:57:21Subtitles by Subtext for Red Bee Media Ltd 2012
0:57:21 > 0:57:24Email subtitling@bbc.co.uk