0:00:02 > 0:00:04Hello. When it comes to buying property,
0:00:04 > 0:00:07there's nothing quite like the thrill of the auction room.
0:00:07 > 0:00:12With fast-paced bids and pounding hearts, the auction room can sometimes be electric.
0:00:12 > 0:00:18Yes, so join us now on the exciting rollercoaster ride that is going to the auction.
0:00:43 > 0:00:47Well, whether it's a flat in Fareham, a semi in Stockport
0:00:47 > 0:00:52or a bolthole in Borrowdale, you'll find what you're looking for at the auctions.
0:00:52 > 0:00:55Today we'll meet some people searching for their perfect property.
0:00:55 > 0:00:58Let's see what tickled their fancy,
0:00:59 > 0:01:04'In Ilkley, Yorkshire, there's the whiff of a bargain with a not-so-fragrant neighbour.'
0:01:04 > 0:01:08That is the sewage works.
0:01:09 > 0:01:13'I turn detective at this semi-detached in Southampton.'
0:01:13 > 0:01:16I've got to work out what is going on with this layout.
0:01:16 > 0:01:18And where's the rest of the house?
0:01:19 > 0:01:22'And in Shropshire, there's an end-of-terrace that bugs me.'
0:01:22 > 0:01:29There is a slight fly in what is, up to this point, a pretty good bit of ointment.
0:01:30 > 0:01:35'All these properties have been sold at auctions. We'll find out who bought them and what they paid
0:01:35 > 0:01:38- 'when they went under the hammer.' - HAMMER BANGS - Sold to you, sir.
0:01:40 > 0:01:47'Ilkley in West Yorkshire is a really lovely spa town and popular tourist destination.
0:01:47 > 0:01:52'The moor above the town is the subject of a cautionary folk song.'
0:01:52 > 0:01:56# On Ilkley Moor baht'at
0:01:56 > 0:02:00'The song warns about courting in the open air without a hat.
0:02:00 > 0:02:03'So will the property I'm here to see leave me cold
0:02:03 > 0:02:05'or will the buyer be crowning themselves in glory?
0:02:05 > 0:02:10'The guide price was £180,000 to £200,000,
0:02:10 > 0:02:12'which on paper sounds like a real bargain.'
0:02:15 > 0:02:18So, I am genuinely very, very excited.
0:02:18 > 0:02:23But that guide price being so low, it's just...
0:02:23 > 0:02:26It's started some alarm bells ringing, for sure.
0:02:27 > 0:02:31This part of town, you could almost say it's the dead end part of the town
0:02:31 > 0:02:35where the cemetery is, is where the property is located.
0:02:35 > 0:02:39Not necessarily a bad thing in its own right. Quiet neighbours, for sure.
0:02:39 > 0:02:45However, it gets worse, because that is the sewage works.
0:02:45 > 0:02:47You can see it but you can't smell it
0:02:47 > 0:02:52and just thank your lucky stars you can't. It is pretty pongy.
0:02:52 > 0:02:57But the property itself...is lovely.
0:02:57 > 0:03:01So maybe there's light at the end of the tunnel. Let's take a look inside.
0:03:02 > 0:03:05# Ooh, that smell
0:03:06 > 0:03:09# Can't you smell that smell?
0:03:10 > 0:03:17'The roof may need a bit of TLC, but I think this property has the whiff of something special about it.'
0:03:18 > 0:03:22So what have we got? Well, straight through the front door, and a nice one it is, too,
0:03:22 > 0:03:25imagine that stripped back, I bet it's beautiful wood,
0:03:25 > 0:03:29into this little reception area. Somewhere to hang your coats.
0:03:29 > 0:03:33First living room over that way and then the second living room here.
0:03:33 > 0:03:38Reasonably high ceilings and it could be in a worse state.
0:03:38 > 0:03:42I like the fact you've got this little reveal here with lots of light coming in.
0:03:42 > 0:03:44And as a second space, it's not bad.
0:03:44 > 0:03:49However, it starts to go a bit wrong when you come over to this side because that is the loo.
0:03:49 > 0:03:52Er, off the living room?
0:03:52 > 0:03:56'It gets even better, because it's not just a loo off the sitting room.
0:03:56 > 0:03:59'In fact, it's your only bathroom off the sitting room.'
0:04:01 > 0:04:06And then through to the kitchen. Again, I'm just not getting that feeling of things being right
0:04:06 > 0:04:12when it comes to the layout. The kitchen itself, well, I suppose you could live with it.
0:04:12 > 0:04:17I'd want to spend some money in here really turning it into something a bit more attractive.
0:04:17 > 0:04:21But more than that, I want to do something with the layout to make it work!
0:04:21 > 0:04:24# Come on, come on, let's work together
0:04:24 > 0:04:28'There's got to be a way of making this layout work.
0:04:28 > 0:04:32'Here's hoping you can move the bathroom off the ground floor.'
0:04:33 > 0:04:39Well, upstairs, and it seems that with every step you take, the problems get worse.
0:04:39 > 0:04:45Wallpaper coming off here. All sorts of damp patches just up there. Then you get onto the landing.
0:04:45 > 0:04:49The bedroom on that side, what is going on there?
0:04:49 > 0:04:53All this wallpaper, lots of mould. I mean, that's the smallest of the bedrooms.
0:04:53 > 0:04:58Let's try and be positive for a second, cos there's two really nice sized doubles here.
0:04:58 > 0:05:04But look at this. Same problem. It probably all goes back to the same thing, a real issue with the roof.
0:05:04 > 0:05:07And it doesn't feel like it's been lived in for a while,
0:05:07 > 0:05:12so all that damp has had a chance to really seep into the property.
0:05:12 > 0:05:14First thing, get that sorted out.
0:05:14 > 0:05:18Second thing, you can start thinking about what you might want to do with this place.
0:05:18 > 0:05:22Given that this is such a big room and that toilet downstairs doesn't really work,
0:05:22 > 0:05:26maybe there's a way of rejigging the layout to incorporate an upstairs bathroom.
0:05:26 > 0:05:31I'd certainly do that as second priority. First priority, the roof.
0:05:31 > 0:05:34# I got a house that leak
0:05:35 > 0:05:39# I got cold, cold in my feet
0:05:40 > 0:05:44'But get a roofer on the case and hopefully things will dry out.
0:05:44 > 0:05:50'Then you can start playing with the layout, and it looks like the garden is ripe for a rejig, too.'
0:05:50 > 0:05:54# Yeah, I'm ready, I'm ready for love
0:05:54 > 0:05:59Well, out through the back door into a little courtyard, but straight away, that smell!
0:05:59 > 0:06:02It's quite intense, to be honest. But anyway, what have we got?
0:06:02 > 0:06:04A little courtyard area.
0:06:04 > 0:06:09A storage area there. You can never have too much of that kind of outdoor storage,
0:06:09 > 0:06:13somewhere to store your mower or your bike. There's another bit here, which is good.
0:06:13 > 0:06:18That could possibly be integrated with the house, but I'd keep it as it is.
0:06:18 > 0:06:23This is your main leisure area. As you can see, it's laid with this gravel stuff.
0:06:23 > 0:06:28And lots more of the natural stone which gives the property its charm.
0:06:28 > 0:06:33This would be an ideal place to have your table and chairs for your outdoor barbecues and stuff.
0:06:33 > 0:06:37But you are going to have to invest quite heavily in scented candles.
0:06:37 > 0:06:41# Because there's something in the air
0:06:43 > 0:06:46'What does a local estate agent make of the place?
0:06:46 > 0:06:51'Remember, its guide price at auction was £180,000 to £200,000.'
0:06:51 > 0:06:54First impressions of the property driving up to it,
0:06:54 > 0:06:58it's a fantastic Victorian building, lots of character.
0:06:58 > 0:07:01First impressions walking through the door, it's in a bit of a state,
0:07:01 > 0:07:05needs quite a lot of work. It's a real doer-upper, a real refurbishment prospect.
0:07:11 > 0:07:14'What could it fetch on the rental market?'
0:07:16 > 0:07:20My thoughts are, in refurbished form, we'd probably be looking at
0:07:20 > 0:07:22in the region of £650 to £700 per calendar month.
0:07:22 > 0:07:26'What about the resale market?'
0:07:27 > 0:07:32I think the challenge is, will it break the stamp duty threshold of £250,000?
0:07:32 > 0:07:37I certainly think, refurbished to a decent standard, £245,000 to £250,000 is very achievable.
0:07:37 > 0:07:43It's just a question of whether you can find somebody to break through and pay that additional stamp duty.
0:07:43 > 0:07:47Well, what you've got here is a really substantial house
0:07:47 > 0:07:50in a much sought-after part of the country.
0:07:50 > 0:07:55The issues, of course, are the graveyard, the light industry and the smells.
0:07:55 > 0:07:58Yes, there's a bit of work to do, but forget that.
0:07:58 > 0:08:02Reality is, in other parts of Ilkley, this would be a lot more expensive.
0:08:02 > 0:08:05So you pays your money, you takes your choice.
0:08:05 > 0:08:08Let's see who bought it when it went under the hammer.
0:08:09 > 0:08:15Lot 105, the vacant three-bedroom detached stone-built lodge house.
0:08:15 > 0:08:17170 to start things off?
0:08:17 > 0:08:20170 if you will. Thank you, sir.
0:08:20 > 0:08:23Straight away at £170,000. 170 I've got. 171 I need.
0:08:25 > 0:08:27It's £170,000 we have.
0:08:27 > 0:08:30171 somewhere else.
0:08:30 > 0:08:33Are we all done at £170,000? Sorry.
0:08:33 > 0:08:37New bid at 171. 172, then. Yeah? 172. 173?
0:08:38 > 0:08:41It's £172,000 we have.
0:08:41 > 0:08:43173, new bidder. 173.
0:08:43 > 0:08:46174, then? 174 he will. 175.
0:08:46 > 0:08:48176.
0:08:48 > 0:08:51It's £175,000 we have.
0:08:51 > 0:08:54176 I'm looking for.
0:08:54 > 0:08:56Anywhere else at 176?
0:08:56 > 0:08:59It's £175,000 we have.
0:08:59 > 0:09:03Are we all done at £175,000?
0:09:03 > 0:09:07Selling, then, for the first time at £175,000.
0:09:07 > 0:09:09Second.
0:09:09 > 0:09:13- Third and final time, all finished? - HAMMER BANGS - Thank you, sir.
0:09:13 > 0:09:17'That successful bid of £175,000 was placed by William.
0:09:17 > 0:09:20'He's a full-time property developer from Leeds
0:09:20 > 0:09:23'who used to run a business hiring out marquees.'
0:09:23 > 0:09:24# William
0:09:24 > 0:09:27# William it was
0:09:27 > 0:09:30# Really nothing
0:09:30 > 0:09:32# William
0:09:32 > 0:09:34# William
0:09:34 > 0:09:38'So, will this venture be all about champagne and celebrations
0:09:38 > 0:09:41'or a bit of a damp squib?'
0:09:41 > 0:09:47- William, great to meet you. Congratulations.- Thank you.- What an interesting property.- Absolutely.
0:09:47 > 0:09:52- It wasn't something I intended to buy at the beginning of the auction. - What do you mean?
0:09:52 > 0:09:54I was actually there to buy a couple of other lots
0:09:54 > 0:09:57but with this being where it is and what it is,
0:09:57 > 0:10:00I'd seen the guide at between £180,000 and £200,000,
0:10:00 > 0:10:04when the auctioneer was getting bids at 170,
0:10:04 > 0:10:10I thought, "I'll bid it up to 175 and let other local investors take it from there".
0:10:10 > 0:10:13And I took it to 175 and there wasn't a local investor to take it further,
0:10:13 > 0:10:19so it's ended up with me, from Leeds, stepping into the Ilkley market and getting a little bit involved.
0:10:19 > 0:10:22So tell me about this property. What are you going to do to it?
0:10:22 > 0:10:26Well, I think one of the things with orphan properties you often find
0:10:26 > 0:10:29is they tend to be orphans within the property market.
0:10:29 > 0:10:35- What's an orphan property? - It's one that really, on the open market, can't find its own way.
0:10:35 > 0:10:40- Erm, you know, who has run out of love along the way.- Aww!
0:10:40 > 0:10:44And a property like this really has. It's a great property.
0:10:44 > 0:10:50It's stone-built, it's got big rooms. It has perhaps gone a little bit too far for a DIYer to say,
0:10:50 > 0:10:56"I'll just jump in and sort that out". It now needs someone who says, "I'm going to throw a team at it,
0:10:56 > 0:11:00"we're going to sort it out quickly, efficiently, bring it back up to standard and spec
0:11:00 > 0:11:02"and then get it back on the open market."
0:11:02 > 0:11:09'Sounds like William might have a career care plan for giving this orphan property a second chance.'
0:11:09 > 0:11:15# Whoa, whoa, whoa, sweet child of mine
0:11:17 > 0:11:21'But this is going to be no walk in the park.'
0:11:22 > 0:11:25What about the roof? Obviously a problem there.
0:11:25 > 0:11:30What you've had, I think, is a situation where over time there's been some lead stolen from the roof
0:11:30 > 0:11:33and then there's been a bad repair, you've got a few slipped tiles.
0:11:33 > 0:11:39So key thing to do is to make the envelope of this house absolutely watertight
0:11:39 > 0:11:44and to bring the roof back up to standard. So I've already got a chap going up on Monday.
0:11:44 > 0:11:48He'll be up on the roof, photographing, preparing a report,
0:11:48 > 0:11:51working out exactly what needs doing, then we'll get that done.
0:11:51 > 0:11:55As soon as we've got that done, we'll have the house ripped out,
0:11:55 > 0:12:00we'll have got all the old carpets, all the old wallpapers, all the old woodwork, everything out.
0:12:00 > 0:12:03We'll reskim the house.
0:12:03 > 0:12:09We'll be adjusting plumbing, electrics, et cetera, as required with all the necessary certification.
0:12:09 > 0:12:13And as soon as we've got that, we'll start bathrooms, kitchens, et cetera.
0:12:13 > 0:12:17'William's plan includes sorting the layout downstairs
0:12:17 > 0:12:21'and moving the bathroom upstairs, which I think is a great idea.
0:12:21 > 0:12:24'He's giving his team 10 to 12 weeks to do the work.
0:12:24 > 0:12:27'How much does he think he'll spend?'
0:12:28 > 0:12:30I've budgeted about £25,000.
0:12:30 > 0:12:36I employ my own staff, so I'm looking at cost of works being the best possible price.
0:12:36 > 0:12:41I'm also very aggressive on getting the best prices for bathrooms, kitchens, et cetera.
0:12:41 > 0:12:46So I feel like I'm well prepared to operate sensibly and within the realistic budget.
0:12:46 > 0:12:50So the things which would've probably put some people off,
0:12:50 > 0:12:53the cemetery, the smell from the surrounding works,
0:12:53 > 0:12:56you've factored that into your calculations?
0:12:56 > 0:12:59The thing is, everything has a price in the marketplace.
0:12:59 > 0:13:02And realistically, for the same price I'm selling this,
0:13:02 > 0:13:06you'd be getting probably a fairly average 1930s semi.
0:13:06 > 0:13:11Now, when you look at the opportunity to have a beautifully stone-built house
0:13:11 > 0:13:15and you think, "There's an opportunity there and there's a buyer for that."
0:13:15 > 0:13:19So you've got to say, "Where's my buyer? At what price can I attract that buyer?
0:13:19 > 0:13:23"And from that price, can I then have enough money to renovate the property
0:13:23 > 0:13:27"and purchase the property while still making, say, £40,000?"
0:13:27 > 0:13:30And that's the sort of margin we're working in with this property.
0:13:30 > 0:13:33Lovely to meet you. Congratulations. Good luck with it.
0:13:33 > 0:13:37- Thank you.- I look forward to seeing how you get on.- Absolutely.
0:13:37 > 0:13:43Well, has this orphaned property found a good foster parent in William?
0:13:43 > 0:13:46I think probably so. The bigger question for me is
0:13:46 > 0:13:51will William find a buyer who's so inspired by what he does to the place
0:13:51 > 0:13:53that they put up with the smell that's outside?
0:13:53 > 0:13:57Will William, in fact, come up smelling of roses?
0:13:57 > 0:14:00You can find out later in the show.
0:14:02 > 0:14:06I'm in Southampton in Hampshire, the city with strong maritime history.
0:14:06 > 0:14:12In the early 20th century, the docks were and still are a major employer in the area,
0:14:12 > 0:14:16home to luxury yachts and liners as well as commercial traffic.
0:14:16 > 0:14:22Indeed, in 1912, the doomed Titanic set sail from this very port.
0:14:22 > 0:14:25Southampton is looking at a more buoyant future, however,
0:14:25 > 0:14:30with investments in the town centre, redeveloped docklands and a thriving university
0:14:30 > 0:14:34which constantly achieves status as one of the best in the country.
0:14:34 > 0:14:39I wonder if the property market is more super yacht or sinking ship.
0:14:39 > 0:14:43# Big ship following me
0:14:43 > 0:14:46# Love is a big ship following me
0:14:48 > 0:14:53Here in the suburb of Freemantle, I'm just a couple of miles from Southampton City Centre.
0:14:53 > 0:14:55The property I'm here to see has got two bedrooms,
0:14:55 > 0:14:59it's a semi-detached house and it's got a guide price of £100,000.
0:14:59 > 0:15:05Now, I know that was lowered by the auction house from £115,000 to £120,000,
0:15:05 > 0:15:08presumably to attract more interest.
0:15:08 > 0:15:10Well, here it is. It's a house and a half!
0:15:10 > 0:15:14Let's get inside and see if it's halfway decent.
0:15:14 > 0:15:16# Half a minute
0:15:16 > 0:15:21'Very strange. It's like a chunk has been taken out of the side of the house.
0:15:21 > 0:15:25'It's obvious that a new side extension was added at some point
0:15:25 > 0:15:28'but for whatever reason it was just made single storey.
0:15:28 > 0:15:30'At least there's a decent driveway
0:15:30 > 0:15:35'and from the outside it looks as though the place is in reasonable condition.'
0:15:37 > 0:15:40Well, this is very odd. You walk into the new extension
0:15:40 > 0:15:43and you're confronted with a shower room with no bath
0:15:43 > 0:15:46and then you've got the kitchen.
0:15:46 > 0:15:49It's not been integrated into the main part of the house at all.
0:15:49 > 0:15:52And the general feel of the place is tired and dated.
0:15:52 > 0:15:55But you learn to expect that from auction properties
0:15:55 > 0:15:58and it does give you scope for improvement, which is a good thing.
0:15:58 > 0:16:03But I would suggest a new kitchen, though. Definitely get a bath in that bathroom.
0:16:03 > 0:16:05But before I even think about cosmetics,
0:16:05 > 0:16:09I've got to work out what is going on with this layout. And where's the rest of the house?
0:16:09 > 0:16:11# Upside down
0:16:11 > 0:16:13# Boy, you turn me
0:16:13 > 0:16:15# Inside out
0:16:15 > 0:16:18# And round and round
0:16:18 > 0:16:20'This area feels like a little annex
0:16:20 > 0:16:24'and I hardly think it's practical to have your only bathroom by the front door.
0:16:24 > 0:16:28'Let's hope the rest of the house is, well, more coherent.'
0:16:29 > 0:16:33From the kitchen, you enter this small dining area
0:16:33 > 0:16:36with the narrowest stairs I think I've ever seen. Not good.
0:16:36 > 0:16:42Into this living room. I've walked almost a full circle from the front door.
0:16:42 > 0:16:47But I think the obvious thing to do here would be to put a door here on this wall
0:16:47 > 0:16:52so you've got access from the hall. And personally, I think I'd get rid of this wall, as well,
0:16:52 > 0:16:57to create a large open-plan living space. Now, that means that you will lose the separate dining room,
0:16:57 > 0:17:01but I think it will just feel much more spacious and open.
0:17:01 > 0:17:05Now, one slight worry of mine is that in this far corner down here, can you see this?
0:17:05 > 0:17:08The floor is actually bouncing.
0:17:08 > 0:17:13This half of the house is old, it's Victorian, so it's likely there's some damp down there.
0:17:13 > 0:17:15I'd definitely get that checked out.
0:17:15 > 0:17:17# Confusion
0:17:17 > 0:17:20'I was hoping for coherence, but all I'm getting is confusion.
0:17:20 > 0:17:24'The rest of the house gets even more creative with its layout.
0:17:24 > 0:17:30'There's the tired old extension at the rear, complete with inside/outside loo.
0:17:30 > 0:17:34'Up the teeny-weeny stairs, there's a teeny-weeny bedroom
0:17:34 > 0:17:37'complete with an internal window.
0:17:37 > 0:17:44'At the front of the house, there's a decent size bedroom complete with worrying cracks.
0:17:45 > 0:17:48'One saving grace is this well-proportioned garden
0:17:48 > 0:17:53'and it comes with your very own supply of cheerful garden gnomes.'
0:17:54 > 0:17:59I think the solution to this confusion is clearer from the outside of the house.
0:17:59 > 0:18:03As it stands, we have an extension which is crying out to be continued upwards.
0:18:03 > 0:18:08At the moment, it just looks like the builder ran out of bricks and has chucked on the roof.
0:18:08 > 0:18:13By extending upwards, you'll be able to move the bathroom upstairs and with some clever design,
0:18:13 > 0:18:18fit in another bedroom. Downstairs you could then open up the kitchen into this former shower room
0:18:18 > 0:18:22and still retain a separate living area with access from the front door.
0:18:22 > 0:18:27What needs checking is the reason why this wasn't done in the first place.
0:18:27 > 0:18:30Was it the decision of the owner or was it a planning problem?
0:18:30 > 0:18:33And costs certainly need to be considered here.
0:18:33 > 0:18:38In my opinion, though, this house needs help and I think this is the best way forward.
0:18:38 > 0:18:40# Help, I need somebody
0:18:40 > 0:18:43# Help, not just anybody
0:18:43 > 0:18:46# Help, you know I need someone, help
0:18:46 > 0:18:49'What does the local estate agent think of this odd house
0:18:49 > 0:18:53'with its discounted guide price of £100,000?'
0:18:53 > 0:18:55The house in the layout at the moment is still flawed.
0:18:55 > 0:18:58If this was my property, I'd apply for planning permission
0:18:58 > 0:19:02to take the single-storey extension to a two-storey extension
0:19:02 > 0:19:06and then refurbish it into a two or three-bedroom house from there.
0:19:06 > 0:19:08# Half a minute
0:19:08 > 0:19:11'Although planning permission can't be taken for granted,
0:19:11 > 0:19:15'what would doubling the height of the extension do for the value?'
0:19:15 > 0:19:19I think if the property was converted into a three-bed,
0:19:19 > 0:19:21it would be worth about £165,000.
0:19:24 > 0:19:28This house is a muddle, but there are solutions to the mess.
0:19:28 > 0:19:31It all depends whether you want to do a quick refurb and let it out
0:19:31 > 0:19:33or actually reorganise this semi.
0:19:33 > 0:19:38But it's in a good location and with the lowered guide price, it's much more appealing.
0:19:38 > 0:19:41Let's see who agreed at the auction.
0:19:41 > 0:19:45OK, then, ladies and gentlemen, we'll start with lot number one
0:19:45 > 0:19:47in Freemantle, Southampton.
0:19:47 > 0:19:51Let's start the bidding. Very cheap. Do we have a bid of 80,000?
0:19:51 > 0:19:55We do, sir, thank you. That's 81. Thank you. 81.
0:19:55 > 0:19:58Back to you at 82 in the centre. 82 is bid.
0:19:58 > 0:20:0283? 83, right-hand side. And 4? 84, thank you.
0:20:02 > 0:20:0785 we have. 86? 86 in the centre.
0:20:07 > 0:20:1087 on the right-hand side. 88,000 we have.
0:20:10 > 0:20:1489, back out on the right. 90?
0:20:14 > 0:20:17You're thinking about it. 90.
0:20:17 > 0:20:2191, sir? 91 on the right-hand side.
0:20:21 > 0:20:23Is there 92 elsewhere in the room?
0:20:23 > 0:20:2792, same bidder. 93. 93 is with you, sir.
0:20:27 > 0:20:30Yes, 94, but very laboured.
0:20:30 > 0:20:3595 I have. £95,000 I have for the first time.
0:20:35 > 0:20:3895,000 I have for the second.
0:20:38 > 0:20:4295,000 I have. 96, new bidder on the back wall.
0:20:42 > 0:20:46Nearly had the hammer down then. 96. You were nearly there, sir.
0:20:46 > 0:20:4897? No?
0:20:48 > 0:20:51It's 96 with you. I'll give you 500, you've been there from the start.
0:20:51 > 0:20:54Yep? 96 and a half we've now got.
0:20:54 > 0:20:5896 and a half. 97? No?
0:20:58 > 0:21:0196 and a half still with you, sir. 96 and a half once.
0:21:01 > 0:21:0496 and a half twice.
0:21:04 > 0:21:07- 96 and a half for the third and final time. - HAMMER BANGS
0:21:07 > 0:21:11Sold to you, sir, £96,500. Well done.
0:21:11 > 0:21:16'The successful bidder was builder Andy who lives in the area.'
0:21:16 > 0:21:20# The concrete and the clay beneath my feet begins to crumble
0:21:20 > 0:21:25'Andy usually builds new houses but is taking on his very first renovation
0:21:25 > 0:21:27'and his very first auction purchase.
0:21:27 > 0:21:32'I met him at his wayward new property to hear what plans he had for imposing some order.'
0:21:34 > 0:21:37- Congratulations, Andy.- Thank you. - You must be so pleased.
0:21:37 > 0:21:40- I think so.- What was it about this house that you liked so much?
0:21:40 > 0:21:46It just seemed right that I could maybe convert it into a couple of small houses.
0:21:46 > 0:21:49- Convert it into a couple of small houses?- Very small.
0:21:49 > 0:21:54It obviously needs a lot of renovating anyway and the house is a strange layout.
0:21:54 > 0:22:01It needs altering and I felt that was maybe a better way to go with it than just creating another two-bed house.
0:22:01 > 0:22:07It's quite incredible that you would think that. When you walk in, you're right, it completely doesn't work.
0:22:07 > 0:22:11But two houses? That is something I didn't even think about myself.
0:22:11 > 0:22:14Have you spoken to the local council?
0:22:14 > 0:22:18We're just doing it at the moment, so nothing's been done yet,
0:22:18 > 0:22:21but we're going down that route now with the planning permission.
0:22:21 > 0:22:26- What do you think the realistic chances of that happening are? - I think it's fairly good.
0:22:26 > 0:22:32But my worry with that is that you would have two incredible small houses.
0:22:32 > 0:22:37- I mean, this is quite a small house as it is. You would literally have one room above another room.- Yeah.
0:22:37 > 0:22:41Except we're planning an extension out the back, a fairly big extension,
0:22:41 > 0:22:46and going up on the lean-to at the side to create a two-bedroom house on this side
0:22:46 > 0:22:49and a one-bed on the left-hand side.
0:22:49 > 0:22:54- So you've almost bought one and you're trying to get one free.- Yeah. - Buy one, get one.- That's right.
0:22:54 > 0:23:00'So Andy thinks it's a two-for and there are actually two houses here, not one.
0:23:00 > 0:23:05'He'll do most of the work here himself and he has fellow builder Steve to help him.
0:23:05 > 0:23:08'But I want to hear more about how those figures stack up.'
0:23:08 > 0:23:13- How much is it going to cost you to build the extensions? - All in all, I could spend £70,000.
0:23:13 > 0:23:16And how long do you think it will take you?
0:23:16 > 0:23:19I think possibly six months when I've got planning permission.
0:23:19 > 0:23:23Would you be happy to hold onto this and try and make it work if you didn't get the go ahead?
0:23:23 > 0:23:28I might be better just to put it back in auction and sell it again if we can't.
0:23:28 > 0:23:34Maybe sort out a few of the obvious things that are wrong. The lean-to on the back is very damp
0:23:34 > 0:23:39and in a dreadful state. That will have to come down and we'll put an extension up out there.
0:23:39 > 0:23:44- What about that square footage upstairs? How will you improve that? - Well, yeah,
0:23:44 > 0:23:48it needs more square footage upstairs but I think if I don't get planning permission,
0:23:48 > 0:23:52it's going to be costly, on top of the lean-to.
0:23:52 > 0:23:55I don't think I'd get my money back on the property.
0:23:55 > 0:24:01So I might just stick with the downstairs extension and just leave the upstairs as two small bedrooms.
0:24:01 > 0:24:05- And just improve the outside space out here?- Yes.
0:24:05 > 0:24:10I can see why that would be cost-effective for you, but it is incredibly small upstairs.
0:24:10 > 0:24:15- There's not even a bathroom up there.- That's right. The bathroom could do with being up there.
0:24:15 > 0:24:19If I move the bathroom upstairs, I will have a room downstairs which I don't know what to do with.
0:24:19 > 0:24:24It could be a small office. But it might be worth me building a two-storey extension out the back
0:24:24 > 0:24:28- and maybe putting the bathroom above that.- I really think so.
0:24:28 > 0:24:31How much more would it cost you to go up a little bit more?
0:24:31 > 0:24:34Probably about £10,000, £15,000.
0:24:34 > 0:24:40- Andy, congratulations. This will be an exciting project. I hope you get planning permission.- So do I.
0:24:40 > 0:24:43- Let me know what happens. Well done. - Thank you.- Thank you.
0:24:45 > 0:24:49I think Andy's grand plans for two houses makes economic sense
0:24:49 > 0:24:53but I wonder if he's just not making double trouble for himself.
0:24:53 > 0:24:56If he keeps it as one house, I'm glad he's planning to extend
0:24:56 > 0:24:59but I think he really needs to increase that space upstairs.
0:24:59 > 0:25:04This is a tricky one. Find out how it goes later in the show.
0:25:04 > 0:25:10'Coming up, in Telford, what you see isn't necessarily what you get.'
0:25:10 > 0:25:14If you look a bit closer, it's actually just single-glazing.
0:25:15 > 0:25:21'In Southampton, is it double trouble turning one house into two for Andy?'
0:25:21 > 0:25:24I felt like just doing it up, painting and decorating and selling it.
0:25:26 > 0:25:32'But first, it's back to Ilkley to see if the orphan house has a brand new family.'
0:25:32 > 0:25:34I've given it all the fostering it needs.
0:25:39 > 0:25:44'We return now to Ilkley in West Yorkshire where full-time property developer William
0:25:44 > 0:25:49'snapped up this three-bed lodge at auction for £175,000.
0:25:49 > 0:25:54'He was undeterred by the sewage works that's nearby and the graveyard next door.
0:25:54 > 0:25:59'He was determined to give what he described as an orphan property a fresh start in life.'
0:25:59 > 0:26:05- What's an orphan property? - One that really, on the open market, can't find its own way.
0:26:05 > 0:26:12You know, it's just perhaps gone a little bit far for a DIYer to say, "I'll jump in and sort that out".
0:26:12 > 0:26:16It now needs someone who says, "I'm going to throw a team at it
0:26:16 > 0:26:19"and then get it back on the open market."
0:26:20 > 0:26:25'William gave his team 10 to 12 weeks and a budget of £25,000
0:26:25 > 0:26:28'to fix the leaky roof and rejig the clunky layout.
0:26:28 > 0:26:33'15 weeks after our first visit, we're back to see if this orphan property
0:26:33 > 0:26:39'has turned into a troublesome teen or whether William really is the daddy.'
0:26:39 > 0:26:42# Daddy, daddy cool
0:26:44 > 0:26:46# Daddy, daddy cool
0:26:48 > 0:26:50# Daddy, daddy cool
0:26:52 > 0:26:55# Daddy, daddy cool
0:26:57 > 0:27:00'Ten out of ten for parenting skills, William.
0:27:00 > 0:27:06'First thing to note is that the roof's been totally overhauled. But what about the changes inside?'
0:27:08 > 0:27:13The first thing you notice about this room is the light and space created by the removal of the chimney.
0:27:13 > 0:27:16We had originally a wall straight across here
0:27:16 > 0:27:19which had a good three foot of chimney each side.
0:27:19 > 0:27:21The space that's been generated there
0:27:21 > 0:27:25has created a kitchen which feels big and spacious
0:27:25 > 0:27:32and then also a dining area that has enough space for everything you'd want of your dining space.
0:27:32 > 0:27:37'The old downstairs bathroom has become a bedroom.
0:27:37 > 0:27:41'William has knocked through into one of the old outhouses to make an en suite
0:27:41 > 0:27:45'and into the other outbuilding to make a walk-in cupboard.
0:27:45 > 0:27:48'Upstairs the small bedroom has become a family bathroom,
0:27:48 > 0:27:53'leaving two good size doubles, one of which now has an en suite shower room.
0:27:53 > 0:27:55'It's a proper grownup now.'
0:27:55 > 0:27:58I think I've given it all the fostering it needs.
0:27:58 > 0:28:03You know, we've taken what was a roof that leaked
0:28:03 > 0:28:05and we've got now a roof that doesn't leak.
0:28:05 > 0:28:07We've taken small kitchens and small lounges
0:28:07 > 0:28:10and made them into a big, open-plan, modern living space.
0:28:10 > 0:28:14This house couldn't have asked for any more. We've taken it
0:28:14 > 0:28:17and we have brought it absolutely up to date.
0:28:17 > 0:28:20# She loves her daddy
0:28:20 > 0:28:24'William also moved the wall in the garden, which opened things up
0:28:24 > 0:28:27'and created a really lovely space.
0:28:27 > 0:28:30'But surely the sewage works next door are an issue.'
0:28:30 > 0:28:35I haven't found the smell to be a problem at all.
0:28:35 > 0:28:39When we have done viewings of the property with prospective buyers,
0:28:39 > 0:28:43more of them have actually said that they're not quite sure about being next to a graveyard
0:28:43 > 0:28:46more so than the water treatment plant.
0:28:46 > 0:28:48So I'm really not seeing that as a problem at all.
0:28:49 > 0:28:55'There's still some work to do to finish the downstairs en suite, but how has William found
0:28:55 > 0:28:57'the process of renovating here?'
0:28:57 > 0:29:00It's been a really easy project.
0:29:00 > 0:29:04The contractors are all in place.
0:29:04 > 0:29:06We use the same guys wherever we go.
0:29:06 > 0:29:10They know how I work and they know the quality of finish that I expect
0:29:10 > 0:29:13and there just hasn't been any problems.
0:29:15 > 0:29:18'Since William stuck to his £25,000 budget,
0:29:18 > 0:29:22'his total outlay on the property is £200,000.
0:29:22 > 0:29:26'What do two local estate agents make of the work he's done here?'
0:29:27 > 0:29:32Really nice. There's a great mix of old and new with the style.
0:29:32 > 0:29:36It's in a great location, great part of Ilkley, very popular
0:29:36 > 0:29:40and it's a credit to the owner. He's done a very good job of the property.
0:29:40 > 0:29:44I think the dining/living/kitchen is absolutely superb.
0:29:44 > 0:29:46I think the quality of the finish is extremely good
0:29:46 > 0:29:48and it's a lovely building.
0:29:48 > 0:29:54'What could the property fetch on the rental market?'
0:29:54 > 0:29:58I expect the rental to be in the region of £850 per calendar month.
0:29:58 > 0:30:04We would look to market this property with a rental valuation of £1,200 per calendar month.
0:30:04 > 0:30:07Whether it's £850 or £1,200 a month, it doesn't really matter.
0:30:07 > 0:30:10I'm here to sell the property, not to rent it.
0:30:10 > 0:30:14'What about that all-important resale value?'
0:30:14 > 0:30:19I would put this property on the market at £287,500
0:30:19 > 0:30:23with a view to achieving a figure of £280,000.
0:30:23 > 0:30:30We would look to market this property for sale for prices in the region of £280,000 to £300,000.
0:30:30 > 0:30:34I think £280,000 for this house is exactly right.
0:30:34 > 0:30:39It's exactly what I expected it to be worth given what I've spent on the property
0:30:39 > 0:30:42and what I purchased the property for.
0:30:42 > 0:30:45Looking at it, we've got it on the market at the moment at £310,000.
0:30:45 > 0:30:50It allows for an offer at ten percent below the asking price, which is acceptable to me.
0:30:51 > 0:30:58'A sale at £280,00 could make William a pre-tax profit of around £80,000
0:30:58 > 0:31:00'minus the usual fees and expenses.
0:31:00 > 0:31:03'So has he enjoyed doing this renovation?'
0:31:05 > 0:31:08Working on this property has been an absolute pleasure.
0:31:08 > 0:31:13It's been great to take a house that was unloved, uncherished and orphaned and bring it back to life.
0:31:13 > 0:31:17I can't wait to get it sold and I can't wait to show the new owner round.
0:31:22 > 0:31:26'I'm in Donnington, a suburb of the new town of Telford.
0:31:26 > 0:31:28'It has strong transport links
0:31:28 > 0:31:31'and with many bus routes and motorway access close by,
0:31:31 > 0:31:35'there's easy access to places like Birmingham and Stoke.'
0:31:35 > 0:31:40The property I'm here to see is situated on this little cul-de-sac. Nice and quiet.
0:31:40 > 0:31:45A place for the kids to play. Guide price was £55,000 plus.
0:31:45 > 0:31:51That's the property. Two-bed end-of-terrace. Looks OK from the outside. Let's take a look inside.
0:31:51 > 0:31:53'The roof appears to be in good condition
0:31:53 > 0:31:57'and just look at the size of that garden. It's huge.
0:31:57 > 0:32:03'Also, it seems as though the new owners benefit from double-glazing. Or do they?'
0:32:03 > 0:32:08So, what's on offer? Well, properties like this do tend to have a fairly standard layout,
0:32:08 > 0:32:10so let's see if that's the case in this instance.
0:32:10 > 0:32:13Through the front door, entrance hall here.
0:32:13 > 0:32:16Nice big window, lets lots of light in, so we like that.
0:32:16 > 0:32:19Stairs up to your bedrooms and bathroom.
0:32:19 > 0:32:22Kitchen there. Nothing too untoward so far.
0:32:22 > 0:32:25And then into your lounge/dining room
0:32:25 > 0:32:28which is actually a really nice size space.
0:32:28 > 0:32:31But something to be aware of.
0:32:31 > 0:32:35At first glance, these look like double-glazed windows. You've got the UPVC surrounds.
0:32:35 > 0:32:41But if you look a bit closer, it's actually just single-glazing. You can make it double-glazed,
0:32:41 > 0:32:45but clearly that's not ideal.
0:32:45 > 0:32:50The room, however, I think could be a really nice space once you've got rid of the polystyrene tiles.
0:32:50 > 0:32:55The other thing I'd like to see in here is this door maybe opened out,
0:32:55 > 0:32:58extended with some kind of supporting beam above it
0:32:58 > 0:33:02and patio doors out onto the rear garden.
0:33:02 > 0:33:07And then you've got the makings of an extremely nice little house.
0:33:07 > 0:33:11# If you want my love then take my advice
0:33:12 > 0:33:14# Treat me nice
0:33:14 > 0:33:20'Treat this house nicely and I think you'll end up with something quite desirable.
0:33:20 > 0:33:25'I can't really fault the layout. Sitting room where it should be and the kitchen also in a good position.
0:33:25 > 0:33:30'But then I stumble upon an additional room that I'm not sure about.'
0:33:32 > 0:33:37So, through the kitchen and you come to this rather unusual extension.
0:33:37 > 0:33:42Bit of an oddity, this. It's got this floor which obviously isn't ideal.
0:33:42 > 0:33:46I don't know if that's got a damp-proof course. In terms of the construction, the walls,
0:33:46 > 0:33:52are they single-skinned or double-brick with some kind of air gap in between
0:33:52 > 0:33:56to give you insulation and damp-proofing? I don't know. That needs investigating.
0:33:56 > 0:34:01The other thing I'd want to check out is the ceiling, or rather, the roof underneath there.
0:34:01 > 0:34:04Erm... Oh, dear. That doesn't look good.
0:34:04 > 0:34:10If you go into this little cupboard, you can actually see what's on the roof. It's corrugated sheets.
0:34:10 > 0:34:16Now, judging by the age of this house, my concern would be that they weren't made from concrete
0:34:16 > 0:34:19but from asbestos, and if they are, that's quite serious.
0:34:19 > 0:34:23You have to have them taken away by a specialist company.
0:34:23 > 0:34:25Asbestos, not good.
0:34:25 > 0:34:29But in terms of the fact that it's here, in terms of planning permission and stuff,
0:34:29 > 0:34:34you've got an established unit, it's a useful space which you can build on.
0:34:34 > 0:34:36# Treat me nice
0:34:36 > 0:34:41'Like everything down here, it's tired and needs a serious wake-up call.'
0:34:41 > 0:34:43# If you really want my loving
0:34:43 > 0:34:46# Treat me nice
0:34:48 > 0:34:53Well, upstairs and no great surprises as to the layout.
0:34:53 > 0:34:56Top of the stairs, where it should be, the bathroom and loo.
0:34:56 > 0:35:02Now, at the moment, they are separate. Loo on one side, bathroom with the bath in it on the other.
0:35:02 > 0:35:08It's the age-old debate. Do you knock this wall down to create one large bathroom with a loo combined
0:35:08 > 0:35:12or do you leave it like it is? I tend to err on the side of leaving it where it is
0:35:12 > 0:35:18cos if you've got a family full of people, having access to the loo separately is a good thing.
0:35:18 > 0:35:22But hey-ho, each to his own. Bedroom at the back, a decent size.
0:35:22 > 0:35:25But a really big bedroom at the front here.
0:35:25 > 0:35:33Big enough almost to think about incorporating this little alcove area, currently with the boiler in,
0:35:33 > 0:35:38and possibly making two bedrooms out of this. It would certainly increase the rental potential
0:35:38 > 0:35:41and also the value of the place. So, something to consider.
0:35:41 > 0:35:46But it's not quite that simple because there is a slight fly
0:35:46 > 0:35:51in what is, up to this point, a pretty good bit of ointment
0:35:51 > 0:35:56and that's that before you do any work on this, you have to have the approval of the previous owner.
0:35:56 > 0:36:01There's a covenant on the property. The previous owner wants to protect the integrity of properties here,
0:36:01 > 0:36:05they're a housing association, so before you do any work, you've got to ask them.
0:36:05 > 0:36:08If they say no, you can't do it.
0:36:08 > 0:36:11# No, no, no
0:36:13 > 0:36:21# You don't love me and I know now
0:36:21 > 0:36:24'I'm not necessarily falling out of love with this property,
0:36:24 > 0:36:29'it's just a hurdle you need to jump over before you start any major work.
0:36:29 > 0:36:34'The bedrooms are both good sizes, but yes, if you wanted to maximise your investment,
0:36:34 > 0:36:38'then creating a third bedroom may well be the way to go.
0:36:38 > 0:36:41'At that guide price of £55,000
0:36:41 > 0:36:43'what does a local estate agent think of this place?
0:36:43 > 0:36:47'We invited one along to find out.'
0:36:47 > 0:36:49Donnington's a good family area.
0:36:49 > 0:36:52Most of the properties were built in the 1960s
0:36:52 > 0:36:54and now many of them are in private ownership.
0:36:54 > 0:36:58The property has a fantastic garden, very, very good size,
0:36:58 > 0:37:02and consequently, there's lots of things you can do with the garden.
0:37:02 > 0:37:08You can put decking there or, in the future, there's potential to build a fairly large conservatory.
0:37:08 > 0:37:13'Let's talk figures. What could it achieve on the resale market?'
0:37:13 > 0:37:18As a two-bedroom, I'd put this on the market for £95,000 if it was in good condition.
0:37:18 > 0:37:24'How much could it sell for once you'd converted upstairs and created a third bedroom?'
0:37:24 > 0:37:29As a three-bedroom, I'd be looking to put it on the market for around £105,000.
0:37:31 > 0:37:36Well, a good, solid house here that would benefit from some improvements
0:37:36 > 0:37:40especially in the bathroom and kitchen areas and, of course, that nasty roof to get rid of.
0:37:40 > 0:37:46And the issue with the covenant could be a problem. But, all in all, I think, a good property to go for.
0:37:46 > 0:37:49Let's see who agreed when it went under the hammer.
0:37:52 > 0:37:54Right. Lot number nine.
0:37:54 > 0:37:57This is a two-bedroomed end town house in a pleasant position.
0:37:57 > 0:38:02Can we get it going at 45? 45 bid. Thank you. At £45,000.
0:38:02 > 0:38:0450. 55?
0:38:04 > 0:38:0755. At £55,000. 60.
0:38:07 > 0:38:0965.
0:38:09 > 0:38:1270.
0:38:12 > 0:38:1775. Somebody want to bid seated or are they out? You're in. 76.
0:38:19 > 0:38:24It's his first bid. At £76,000 then. First time.
0:38:24 > 0:38:27At... Back in 76 and a half.
0:38:27 > 0:38:2977. Half.
0:38:29 > 0:38:3378. Half.
0:38:33 > 0:38:3679 anywhere else? If not, 78... Back in, 79.
0:38:36 > 0:38:39You're shaking your head now. 79, gentleman seated.
0:38:39 > 0:38:42At £79,000. All done now?
0:38:42 > 0:38:4579 first time.
0:38:45 > 0:38:4779 second time.
0:38:47 > 0:38:49Back in, 79 and a half.
0:38:49 > 0:38:53You're shaking your head now. 79 and a half standing, first time.
0:38:53 > 0:38:5779 and a half standing, second time. Third and final time.
0:38:57 > 0:39:02- At £79,500. Are we all done? - HAMMER BANGS
0:39:03 > 0:39:08'The successful bid was made by James with his partner Jo.
0:39:08 > 0:39:14'James used to work as a transport and logistics manager, but decided to move into property developing.
0:39:14 > 0:39:19'Jo is a clinical nurse specialist who runs a Botox business in her spare time.
0:39:19 > 0:39:22'This is the very first property in their portfolio.
0:39:22 > 0:39:27'I went to meet them and find out their plans for giving this place a nip and tuck.'
0:39:30 > 0:39:34- Jo, James, good to meet you both. Congratulations. - Thank you.- Good morning.
0:39:34 > 0:39:39- Tell me why you wanted to buy this place.- Well, we looked round a few houses in the auction,
0:39:39 > 0:39:43and it was the worst house in a nice street.
0:39:43 > 0:39:49- So, in area terms, you know the area?- I do. I used to be a district nurse in this area.
0:39:49 > 0:39:55So I knew it well. We felt that it was a really good location because there's a really good park nearby,
0:39:55 > 0:39:59great garden, it's a cul-de-sac, it's a good family-sized house and location.
0:40:01 > 0:40:08'James is just starting out as a developer. He admits he doesn't have much property developing experience,
0:40:08 > 0:40:12'apart from doing up his own home, but Jo will be there to support him.'
0:40:12 > 0:40:15# Stand by me
0:40:15 > 0:40:19# Oh, stand by me
0:40:19 > 0:40:23I was really supportive of him doing this cos the climate at the moment is rubbish,
0:40:23 > 0:40:27- especially for guys getting on a bit. - THEY LAUGH
0:40:27 > 0:40:30He doesn't look like he's getting on that much.
0:40:30 > 0:40:34But, no, it's a good time, it's a good time in our life to do it.
0:40:34 > 0:40:37We've got the cash behind us to do it, and why not?
0:40:37 > 0:40:42'For a couple starting out in the world of developing, this is a great house to get stuck into.
0:40:42 > 0:40:46'So, what's the grand plan?'
0:40:46 > 0:40:50This lounge is pretty well going to stay as is. Obviously needs decorating.
0:40:50 > 0:40:56The kitchen and the outside room will be knocked through into one to make a nice big dining/family room
0:40:56 > 0:41:00with some nice French doors opening out onto the patio.
0:41:00 > 0:41:05Then upstairs, we're knocking the bathroom and toilet through to make one big family bathroom.
0:41:05 > 0:41:10The one double bedroom is staying the same, and the large double bedroom will be sectioned off,
0:41:10 > 0:41:13we're going to make a small third nursery/study type bedroom.
0:41:13 > 0:41:19And retain two double bedrooms and one small one, to give a bit of flexibility if people want to rent.
0:41:19 > 0:41:26'James and Jo plan to add a window to the divided room so each room will have a view out.
0:41:26 > 0:41:32'But this house has that special covenant which could interfere with any development plans.'
0:41:33 > 0:41:38The covenant states that any change of structure
0:41:38 > 0:41:41has to be approved by Wrekin Housing Trust who sold the house.
0:41:41 > 0:41:45- Right.- And all the changes we've proposed seem to be no problem,
0:41:45 > 0:41:51- as long as we get building regs clearance, as well.- Talk me through the money. What's your budget?
0:41:51 > 0:41:57- THEY LAUGH - We've done quite a lot of work on the budget.
0:41:57 > 0:42:01We probably don't want to spend more than £10,000 on the property.
0:42:01 > 0:42:05We hope to spend seven or eight but we thought £10,000 gives us a cushion.
0:42:05 > 0:42:08Great. So, in terms of timescales, then?
0:42:08 > 0:42:11- THEY LAUGH - I love this laughter.
0:42:11 > 0:42:16There's a laughter at the budget, there's a laughter at the timescale. That always worries me.
0:42:16 > 0:42:21Well, the plan is three months to have it all done and somebody in.
0:42:21 > 0:42:23Fingers crossed. If things don't go wrong.
0:42:23 > 0:42:30- Well, listen, good luck with it. Congratulations. And I look forward to seeing how you get on.- Thank you.
0:42:31 > 0:42:36Well, Jo and James laughing about the timescales and budget.
0:42:36 > 0:42:42Let's hope that laughter doesn't turn to tears because time is money in the business they're now in.
0:42:42 > 0:42:45You can find out how it all goes later in the show.
0:42:48 > 0:42:54Well, when we left our auction aficionados, they had dreams and high hopes of success.
0:42:54 > 0:42:58- Have those properties been giving them sleepless nights? - Let's go back and find out.
0:42:58 > 0:43:00# Half a minute
0:43:00 > 0:43:04'We're back in Freemantle near Southampton to see how Andy got on
0:43:04 > 0:43:09'with that semi-detached house with a semi-height extension.
0:43:09 > 0:43:15'Externally, it seemed fine. But inside, the layout left a lot to be desired.
0:43:15 > 0:43:18'It was an upside down, topsy-turvy collection of rooms.
0:43:18 > 0:43:21'There was a shower room by the front door.
0:43:21 > 0:43:24'A bedroom with an internal window.
0:43:24 > 0:43:27'A strange little extension out back.
0:43:27 > 0:43:32'And, of course, there was that under-sized one-storey add-on to the side.
0:43:32 > 0:43:36'I thought it would be a simple job to add height to the side extension,
0:43:36 > 0:43:39'then you could shuffle the rooms round to make a lovely three-bed house,
0:43:39 > 0:43:44'but builder Andy had other ideas.'
0:43:44 > 0:43:48I could convert it into a couple of small houses.
0:43:48 > 0:43:51- Convert it into a couple of small houses?- Very small.
0:43:53 > 0:43:59'So Andy thought he'd bagged himself a proper bargain and bought two houses for the price of one.
0:43:59 > 0:44:03'He paid £96,500 for them
0:44:03 > 0:44:07'and had set aside a budget of around £70,000 to turn one house into two.
0:44:07 > 0:44:10'He thought it would take him around six months.
0:44:10 > 0:44:15'We've come back a whopping three years later to see what took Andy so long!
0:44:15 > 0:44:19'Did he pick up a bargain or were they damaged goods?'
0:44:19 > 0:44:24# Don't stop me cos I'm having a good time, having a good time
0:44:24 > 0:44:27# I'm a shooting star leaping through the sky
0:44:27 > 0:44:31# Like a tiger, defying the laws of gravity
0:44:31 > 0:44:35'Well, it must be double bonus points day for Andy.
0:44:35 > 0:44:39'Those two front doors tell you he obviously got the go-ahead
0:44:39 > 0:44:44'to make two small houses out of one smallish house with a large garden.
0:44:44 > 0:44:51'On the right-hand side, he's squeezed in a two-bedroom house, and on the left there's a one-bedroom.
0:44:51 > 0:44:56'The old lean-to at the side was demolished and he built a brand new one-bedroom house in its place.
0:44:56 > 0:44:59'But this has not been an easy ride for him.
0:44:59 > 0:45:03'What should have taken him six months took almost 36 months.'
0:45:05 > 0:45:10It's taken a lot longer than what I originally said, six months, but that's due to planning issues we had.
0:45:10 > 0:45:17It's been turned down twice for planning by the council.
0:45:17 > 0:45:19And therefore I had to go to appeal.
0:45:19 > 0:45:24Not really a problem, just lots of issues to resolve and time-consuming.
0:45:24 > 0:45:27'One of the problems Andy had to deal with was a party wall.
0:45:27 > 0:45:33'A party wall is when the dividing walls between two neighbouring buildings are shared,
0:45:33 > 0:45:38'or are in close proximity. For any work to be done it requires the cooperation of the neighbours,
0:45:38 > 0:45:44'which can hold things up, especially as in Andy's case he had two to deal with.'
0:45:44 > 0:45:46# Pressure
0:45:46 > 0:45:48# Pushing down on me
0:45:48 > 0:45:55- 'But Andy's perseverance paid off.' - I felt like just doing it up, painting, decorating and selling it,
0:45:55 > 0:45:58but it was not my original plan so I kept on.
0:45:58 > 0:46:03'Andy's one-bedroom house was built on the site of the old half-height side extension,
0:46:03 > 0:46:06'so it's very long and thin.
0:46:06 > 0:46:10'This one has an open-plan kitchen/sitting room combo on the ground floor.
0:46:10 > 0:46:17'And although it's been completely rebuilt, the shower room is still beside the front door.
0:46:17 > 0:46:23'Upstairs there's a tiny toilet and a small double bedroom,
0:46:23 > 0:46:30'but fitting two houses onto such a small site was always ambitious and it has led to compromises.'
0:46:31 > 0:46:33The garden we've split into two.
0:46:33 > 0:46:39I wanted to keep it quite low maintenance so I've laid patio slabs and we put a shed at the end.
0:46:39 > 0:46:46We've laid a synthetic lawn just to add a little bit of colour. And I'm pleased with the way it's turned out.
0:46:46 > 0:46:52'To redesign the original two-bedroom house, Andy demolished the dodgy old rear addition
0:46:52 > 0:46:55'and built a double-height extension at the back.
0:46:55 > 0:46:59'On the ground floor, you enter straight off the street into the living room
0:46:59 > 0:47:04'with stairs off to the upper floor at the back of the room.
0:47:04 > 0:47:07'Leading off the sitting room there's a well laid-out galley kitchen
0:47:07 > 0:47:12'which makes the very most of the available space.
0:47:12 > 0:47:17'Up those same narrow stairs, Andy has squeezed in a bathroom on the first floor,
0:47:17 > 0:47:20'as well as retaining two bedrooms.
0:47:20 > 0:47:23'At the front, there's still a good-sized double bedroom.
0:47:23 > 0:47:27'But at the back he's been left with a very compact single bedroom.'
0:47:28 > 0:47:34I've tried to keep it a nice level of finish but without really spending too much on it.
0:47:34 > 0:47:38I wanted to spend £70,000 on it really,
0:47:38 > 0:47:41and I think, at the moment, it's running at about 68.
0:47:41 > 0:47:46'Andy bought the property for £96,500.
0:47:46 > 0:47:49'And since he's spent £68,000 on the renovations,
0:47:49 > 0:47:54'that brings his total outlay to £164,500.
0:47:54 > 0:47:59'Let's hear what two local property experts think of his endeavours.'
0:48:00 > 0:48:03This is my first time back to the property since the renovation.
0:48:03 > 0:48:05I think the changes have been very good.
0:48:05 > 0:48:08Obviously, there's been some issues with planning.
0:48:08 > 0:48:11And subsequently the properties got slightly smaller.
0:48:11 > 0:48:16But what they've done with it is very, very good. Attention to detail particularly good.
0:48:16 > 0:48:20I think he's done the right thing making it into two properties.
0:48:20 > 0:48:24Obviously, that will raise the resale values.
0:48:24 > 0:48:28And as a buy-to-let investment, you're going to get a greater income.
0:48:28 > 0:48:31Overall finish is very good, to a high standard.
0:48:31 > 0:48:35Perhaps not luxury standard but certainly very good.
0:48:36 > 0:48:40Having parking with the one-bed and the two-bed is a great selling point.
0:48:40 > 0:48:45This particular road is particularly busy, so off-road parking is a great feature.
0:48:47 > 0:48:50'It's time to find out what the properties could sell for.'
0:48:50 > 0:48:55I would look to sell the two-bedroom property for £135,000.
0:48:55 > 0:49:01I would recommend an asking price of £135,000 to £140,000 for the two-bed.
0:49:01 > 0:49:04'And the one-bedroom house?'
0:49:04 > 0:49:07I would look to sell the one-bedroom property at £110,000.
0:49:07 > 0:49:12For the one-bed, I recommend an asking price of £110,000 to £115,000.
0:49:13 > 0:49:16'Those valuations give a combined total
0:49:16 > 0:49:21'of £245,000 to £255,000 for both houses.
0:49:21 > 0:49:28'That would give Andy a profit of between £80,500 and £95,500,
0:49:28 > 0:49:31'before costs and expenses.'
0:49:31 > 0:49:36Yeah. I had hoped for a little bit more for the one-bed. But otherwise I think it sounds very good, very fair.
0:49:36 > 0:49:39# Crazy little thing called love
0:49:40 > 0:49:43'Andy's very first refurbishment has paid off.
0:49:43 > 0:49:48'It might have taken a while but this project filled a gap during a quiet time for new builds.
0:49:48 > 0:49:54'It also paid him a wage, as well as turning a decent profit. So, will he be back for more?'
0:49:54 > 0:49:59It has been worth it because it's kept me employed all this time and I've made some money on it.
0:49:59 > 0:50:06I will go back to auction. I shall keep my eye on the brochure, see what comes up for sale.
0:50:06 > 0:50:11And in the meantime, I'll do my normal work that I do, bathrooms and kitchens and extensions and things
0:50:11 > 0:50:14and go from there.
0:50:17 > 0:50:24'Back to Donnington in Shropshire where earlier we met James and his partner Jo.
0:50:24 > 0:50:29'They'd bought this two-bedroomed end-of-terrace at auction for £79,500.
0:50:29 > 0:50:34'James worked in transport and logistics before starting his property developing company.
0:50:34 > 0:50:40'Jo works as a clinical nurse specialist who also runs a Botox business in her spare time.
0:50:41 > 0:50:46'This was a great starter property for a face lift, but it did have its share of problems.
0:50:46 > 0:50:49'There was a covenant which stated that
0:50:49 > 0:50:54'any changes had to be approved by the housing association before any work started.
0:50:54 > 0:50:58'Work like dividing bedrooms to make more bedrooms, for example.'
0:50:58 > 0:51:02We're going to make a small third nursery/study type bedroom,
0:51:02 > 0:51:08and retain two double bedrooms and one small one for flexibility if people wanted to rent out.
0:51:08 > 0:51:10'Renting was definitely a key goal for James and Jo
0:51:10 > 0:51:15'as this was the first of hopefully many properties for James's new business.
0:51:15 > 0:51:19'We returned four months later to see what's changed.
0:51:20 > 0:51:24'Well, it's work in progress everywhere.
0:51:24 > 0:51:26'There are new double patio doors into the garden,
0:51:26 > 0:51:33'and inside the dark, pokey kitchen is now light, bright and much more family-friendly.
0:51:33 > 0:51:39'The reason it's not complete is James ran into massive problems when he started on the ground floor.'
0:51:39 > 0:51:43I had to start digging the floor up in the extension part.
0:51:43 > 0:51:46And I found a lot of damp underneath it.
0:51:46 > 0:51:49And after investigation around the house, I found damp everywhere.
0:51:49 > 0:51:54It turned out the water supply coming into the house had been leaking since the house was made.
0:51:54 > 0:51:57So subsequently, I had to dig all the floors up and replace the lot.
0:51:57 > 0:52:03'By digging the floors up by hand, James found the leak and fixed it.
0:52:03 > 0:52:06'He could then finally get on with his very first renovation.'
0:52:07 > 0:52:11Right, well, this was the kitchen and an outbuilding,
0:52:11 > 0:52:16and what I've done is put a Catnic across here and then took the wall out
0:52:16 > 0:52:20and in the out-building, replaced it with a proper roof
0:52:20 > 0:52:23and a proper ceiling on the inside here
0:52:23 > 0:52:27with thermal barrier on the inside to bring it up to modern specs.
0:52:27 > 0:52:31Also removed a door and a coalhouse.
0:52:31 > 0:52:35We blocked up the original rear door and put a large French door
0:52:35 > 0:52:38so you can sit down and look out on the garden.
0:52:39 > 0:52:43'Although the garden looks a bit like a building site at the moment,
0:52:43 > 0:52:47'opening up the kitchen has certainly made great use of the space.
0:52:47 > 0:52:53'The extra window and patio door really help brighten up what was once a very dark room.
0:52:53 > 0:52:59'James has also converted the pantry into a downstairs toilet, which is a useful bonus for families.
0:52:59 > 0:53:02'So, what's changed upstairs?'
0:53:10 > 0:53:14Right, well, upstairs there's been quite a few changes.
0:53:14 > 0:53:21The bathroom was originally a separate WC and a very small bathroom alongside it.
0:53:21 > 0:53:23What I've done is remove the wall between the two
0:53:23 > 0:53:27and put one access door of a proper size into the room
0:53:27 > 0:53:31which has made a nice proper family-sized bathroom.
0:53:32 > 0:53:37'James has also utilised the area above the stairwell to create space for a third bedroom.
0:53:37 > 0:53:41'And he's also added an extra window.
0:53:41 > 0:53:46'It's a bit cosy in here, but at least the master bedroom is still a good size.
0:53:46 > 0:53:51'James set up a company with his girlfriend, Jo, to do this and future projects.
0:53:51 > 0:53:53'How has that been going?'
0:53:53 > 0:53:58Jo's helped at weekends and around work but I've been mainly doing all the work myself.
0:53:58 > 0:54:03Doing this job between us has been quite stressful at times. We've had a few...
0:54:03 > 0:54:06..differences of opinions on things.
0:54:07 > 0:54:11But Jo usually tells me and I have to come round to that way in the end.
0:54:11 > 0:54:16'The bathroom and kitchen still have to be installed and the whole place needs painting and decorating.
0:54:16 > 0:54:20'Did they manage to stick to their original budget of ten grand?'
0:54:20 > 0:54:26I did say I had a contingency at the time up to £10,000. I've currently got to £9,500.
0:54:26 > 0:54:29I was hoping to be finished by now, originally,
0:54:29 > 0:54:34but the extra time the floor has taken has added at least another six weeks on,
0:54:34 > 0:54:37so I'm hoping to have things wrapped up in another month.
0:54:39 > 0:54:45'With a purchase price of £79,500 and renovation costs of £9,500,
0:54:45 > 0:54:50'that's a total outlay of £89,000. We asked two local estate agents
0:54:50 > 0:54:53'to give us their opinions on this property.'
0:54:55 > 0:54:59First impressions are he's made it absolutely superb inside.
0:54:59 > 0:55:03With what he'll do to the kitchen, I think he's maximised the space there.
0:55:03 > 0:55:06I think making it into three bedrooms is better saleability,
0:55:06 > 0:55:10He's still got two double rooms and one single, which works really well.
0:55:10 > 0:55:13There's nothing I would have done differently
0:55:13 > 0:55:15with this property with the existing footprint
0:55:15 > 0:55:20to maximise the rental value and the sale price.
0:55:20 > 0:55:25I think the purchasers have done everything they could possibly do to maximise both.
0:55:25 > 0:55:29'Let's talk money. What kind of resale value could you expect here?'
0:55:31 > 0:55:36I would value this, once completed, between £95,000 and £100,000.
0:55:36 > 0:55:42Once finished I believe the property would be on the market for £100,000 to achieve a sale price of £95,000.
0:55:42 > 0:55:49'That's a potential profit of between £6,000 and £11,000 minus taxes and the usual expenses.'
0:55:52 > 0:55:56Slightly disappointed with that. I was hoping for £10,000 or £15,000 more.
0:55:56 > 0:56:01That would definitely make up my mind to keep it for now, rent it out and sell it when the market picks up.
0:56:01 > 0:56:04'So what about rental?'
0:56:04 > 0:56:11I would put this on the rental market at between £550 and £575 per calendar month.
0:56:11 > 0:56:15I feel the rental value of this property is £525 per calendar month.
0:56:16 > 0:56:21'That's a healthy yield of between seven and eight percent per annum.'
0:56:21 > 0:56:25That sounds about what I thought it was going to be.
0:56:25 > 0:56:31Erm, I've got somebody interested who's hopefully moving in at the higher end of that scale.
0:56:31 > 0:56:37'Has James enjoyed developing his first property?'
0:56:37 > 0:56:43I've enjoyed it so much I'm looking to do it again and keep on doing it for the foreseeable future.
0:56:45 > 0:56:48Look forward to seeing you next time on Homes Under The Hammer.
0:56:48 > 0:56:55- We'll have lots more interesting properties and ambitious buyers for you then.- Take care.- Goodbye.- Bye.
0:56:56 > 0:57:00Subtitles by Red Bee Media Ltd
0:57:00 > 0:57:04E-mail subtitling@bbc.co.uk