0:00:02 > 0:00:05- Hello and welcome to the programme. - Even in the current property market,
0:00:05 > 0:00:07we still both enjoy buying property.
0:00:07 > 0:00:10We like the idea of getting a good deal,
0:00:10 > 0:00:14but in today's competitive market, it's not always that easy.
0:00:14 > 0:00:18One way you could get a bargain is to buy under the hammer.
0:00:43 > 0:00:45Buying land and property at auction
0:00:45 > 0:00:47is becoming more and more popular these days.
0:00:47 > 0:00:50Millions of pounds' worth of property is sold every month,
0:00:50 > 0:00:53all round the country in auction rooms everywhere.
0:00:53 > 0:00:56Here are the properties we're featuring on today's show.
0:00:58 > 0:01:01In Bredbury, Cheshire, it's all about colour.
0:01:01 > 0:01:06Come in here and find yourself marooned in a sea of plum.
0:01:07 > 0:01:11In Darwin, Lancashire, I may have found my lunch.
0:01:11 > 0:01:13Mushrooms on toast, anybody?
0:01:13 > 0:01:16Look what I've spotted in the corner.
0:01:16 > 0:01:18A collection of fungus.
0:01:18 > 0:01:21And, in Torpoint, Cornwall, there are easy fixes to do.
0:01:21 > 0:01:24That is a change I would make straightaway
0:01:24 > 0:01:27and you totally transform the living space in this house.
0:01:29 > 0:01:32These properties are being sold at auction and we find out who bought them
0:01:32 > 0:01:36and what they paid for them when they went under the hammer.
0:01:36 > 0:01:37All done?
0:01:45 > 0:01:51I'm in Bredbury, a Cheshire village on the outskirts of Stockport,
0:01:51 > 0:01:53just six miles from Manchester city centre.
0:01:57 > 0:02:00Bredbury's a really popular, residential area,
0:02:00 > 0:02:03very popular with families and you can see why.
0:02:03 > 0:02:07The property I'm here to see is on this quiet cul-de-sac, which is even better.
0:02:07 > 0:02:10It's this, a 1930s semi-detached.
0:02:10 > 0:02:13It looks a little bit tired and dated from the outside,
0:02:13 > 0:02:16but the good news is the guide price - £90,000.
0:02:16 > 0:02:19Similar properties around here are going for a lot more than that
0:02:19 > 0:02:22so, I think, there could be money to be made on this one.
0:02:22 > 0:02:25I can see straightaway there is potential to extend to the side
0:02:25 > 0:02:30and there would still be room for off-street parking at the front.
0:02:30 > 0:02:33There's also a garage, although by the looks of it
0:02:33 > 0:02:36that's an asbestos roof, so you'd really need to get that checked out.
0:02:36 > 0:02:39Wow!
0:02:39 > 0:02:41I wasn't quite expecting that!
0:02:41 > 0:02:45Yes, a bit of mock-Tudor in a 1930s semi.
0:02:45 > 0:02:49Always looks interesting, so to speak.
0:02:49 > 0:02:53It gives a very cramped feel to the entrance here.
0:02:53 > 0:02:56You've got lots of mock woodwork and ironwork going on.
0:02:56 > 0:02:59It's not really ideal.
0:02:59 > 0:03:03Does it get any better when you come into the lounge?
0:03:03 > 0:03:07No, the theme continues. At least, it's consistent!
0:03:07 > 0:03:09I'm seeing straightaway
0:03:09 > 0:03:12it's a house that would really benefit from some modernisation,
0:03:12 > 0:03:14especially the decoration.
0:03:14 > 0:03:16I don't know how you get rid of this.
0:03:16 > 0:03:21I guess, you would take it off and plaster over the top,
0:03:21 > 0:03:26if you don't like it which, to be fair, it's not most people's taste.
0:03:26 > 0:03:28In terms of the size of the room,
0:03:28 > 0:03:30it's been knocked through at some point.
0:03:30 > 0:03:34I'm thinking there might be some playing around with the layout
0:03:34 > 0:03:38of the kitchen and this room. That's to be thought through.
0:03:38 > 0:03:40But, as a starting point,
0:03:40 > 0:03:43let's try and focus on the space which is good.
0:03:43 > 0:03:45Everything else is a bit... urgh.
0:03:50 > 0:03:54The kitchen definitely needs replacing.
0:03:54 > 0:03:57The units are very old and it's a bit on the small side.
0:03:57 > 0:04:00You could knock through to the living room
0:04:00 > 0:04:02making it all one big, open-plan space.
0:04:03 > 0:04:08Or, if you did extend to the side, it would enlarge the kitchen that way.
0:04:08 > 0:04:13It doesn't look like there will be much room to extend at the back.
0:04:13 > 0:04:19Well, at the rear of the property, not the huge family garden you might have been hoping for.
0:04:19 > 0:04:21It's been flagged stoned for this bit.
0:04:21 > 0:04:24The bit that is terribly overgrown and then this drop-off.
0:04:24 > 0:04:29The good news is, really nice to overlook the woods like that.
0:04:29 > 0:04:30As an additional bonus,
0:04:30 > 0:04:34this is storage which goes underneath the whole of the property.
0:04:34 > 0:04:40It's not a bad space to have, but I would like to see it improved, somewhat.
0:04:40 > 0:04:44# It's a long way down... #
0:04:46 > 0:04:51For a family home, it would definitely be essential to fence securely along the back.
0:04:51 > 0:04:54It really is a long way down to the forest floor.
0:04:57 > 0:05:01So, upstairs, nothing too surprising.
0:05:01 > 0:05:06Small box room there, larger double bedroom at the rear
0:05:06 > 0:05:08and a really nice-sized double bedroom
0:05:08 > 0:05:10at the front benefiting from that bay window.
0:05:10 > 0:05:14Where it all goes a little bit eclectic,
0:05:14 > 0:05:18is in the bathroom.
0:05:18 > 0:05:23Come in here and find yourself marooned in a sea of plum.
0:05:23 > 0:05:24Yes...
0:05:24 > 0:05:27If you've a bathroom like this, please forgive this comment.
0:05:27 > 0:05:30It really needs to go, doesn't it?
0:05:30 > 0:05:35White, please, would improve the room dramatically.
0:05:35 > 0:05:39It may have a plum coloured bathroom, but is it a plum-vestment?
0:05:39 > 0:05:42We asked a local estate agent for his opinion
0:05:42 > 0:05:46on this three-bedroom semi that had an auction guide price of £90,000.
0:05:48 > 0:05:50Every room needs some attention in it...
0:05:50 > 0:05:52New kitchen, new bathroom.
0:05:52 > 0:05:56I would suggest that the property is re-plastered
0:05:56 > 0:06:01and with an inspection we would need to possibly look at the electrics, as well.
0:06:01 > 0:06:04An extension on this property would add a lot of benefit.
0:06:04 > 0:06:07You could possibly get an extra reception room downstairs,
0:06:07 > 0:06:10or, with planning permission,
0:06:10 > 0:06:11you could add another bedroom
0:06:11 > 0:06:14which would be an added value for any families living here.
0:06:17 > 0:06:20What could you earn if you rented this out?
0:06:20 > 0:06:24There is a huge demand for three bedroom properties in this area.
0:06:24 > 0:06:26To rent this property out
0:06:26 > 0:06:29would be very attractive for the rental market.
0:06:29 > 0:06:33And sale value, once renovated?
0:06:33 > 0:06:39On the open market, I would value this property between 130 and £140,000.
0:06:41 > 0:06:44It's a good-sized property in a nice area.
0:06:44 > 0:06:47It really just needs to be modernised
0:06:47 > 0:06:51and brought out of the era it's in into the 21st Century.
0:06:51 > 0:06:54Let's find out who fancied buying it when it went under the hammer.
0:06:57 > 0:07:00OK, Lot 3, a vacant three-bedroomed, semi-detached house,
0:07:00 > 0:07:03guide, £90,000. What's it worth?
0:07:03 > 0:07:0580,000?
0:07:05 > 0:07:08Too high for you, give me 75 and we're away.
0:07:08 > 0:07:1075,000 bid, thank you.
0:07:10 > 0:07:13Your bid, madam. £75,000 I have then.
0:07:13 > 0:07:14Do I see 80?
0:07:14 > 0:07:1680 bid. 80, thank you.
0:07:16 > 0:07:1781, then, keep it going.
0:07:17 > 0:07:20At £80,000... Do I see 81?
0:07:20 > 0:07:22At 81,000...
0:07:22 > 0:07:23Do I see 82 now? 82, I have.
0:07:23 > 0:07:2782,000... It's against you.
0:07:27 > 0:07:2983... OK, at 83,000. 84?
0:07:29 > 0:07:32At 84. 85?
0:07:32 > 0:07:35At 85,000 we're at now. Do I see 86?
0:07:35 > 0:07:37At 86,000. 87, are we all done?
0:07:37 > 0:07:39£87,000...
0:07:39 > 0:07:4187, then for the first time.
0:07:42 > 0:07:44At 87... At 88,000.
0:07:44 > 0:07:47Good job you came in, the hammer was going down.
0:07:47 > 0:07:50The bid's at 88, do you want to come back in? It's going to be sold.
0:07:50 > 0:07:53At £88,000 on my right, for the first time.
0:07:53 > 0:07:56Second time at £88,000...
0:07:56 > 0:07:59Are we all done and dusted at £88,000?
0:07:59 > 0:08:02I don't want to bring the hammer down,
0:08:02 > 0:08:03but there you go.
0:08:03 > 0:08:06Can I have your number, sir. 922. At 88,000... Goodbye.
0:08:08 > 0:08:12It was husband-and-wife Jonathan and Georgina
0:08:12 > 0:08:15who made that successful bid of 88,000.
0:08:15 > 0:08:18Jonathan's a director at an economic development consultancy
0:08:18 > 0:08:21and Georgina's a financial adviser.
0:08:21 > 0:08:24They live nearby in Manchester.
0:08:24 > 0:08:27I met them at the property to find out their plans.
0:08:27 > 0:08:30- Jonathan, Georgina, lovely to meet you.- Nice to meet you.
0:08:30 > 0:08:32- Congratulations.- Thanks.- Thanks.
0:08:32 > 0:08:35Tell me why you wanted to buy this place?
0:08:35 > 0:08:38Basically, we've just been looking for a project to do
0:08:38 > 0:08:41and we thought this was the perfect opportunity.
0:08:41 > 0:08:42We saw it in the catalogue.
0:08:42 > 0:08:46We thought there's probably a bit of money to be made on it.
0:08:46 > 0:08:47It clearly needs work.
0:08:47 > 0:08:50We thought this was probably a good property to start with.
0:08:50 > 0:08:54Is this something for you to live in, do up and sell on, rent out?
0:08:54 > 0:08:56The plan is to do it up and sell it on.
0:08:56 > 0:09:00We've got a bit of a contingency plan, as well.
0:09:00 > 0:09:03- If that doesn't work out, we can move into it.- Right, OK.
0:09:03 > 0:09:05That's the worst case scenario.
0:09:05 > 0:09:07- We are looking to sell it, really. - Yes.
0:09:07 > 0:09:12Jonathan and Georgina already have two rental properties,
0:09:12 > 0:09:14but this is the first time buying at auction
0:09:14 > 0:09:17and the first time they've bought to sell.
0:09:17 > 0:09:20It's also their biggest project to date.
0:09:21 > 0:09:24What prompted you to get into property developing?
0:09:24 > 0:09:28It's something that we've been thinking about for quite a while.
0:09:28 > 0:09:30George, used to work in property.
0:09:30 > 0:09:34She used to be an estate agent, so she's got some decent contacts.
0:09:34 > 0:09:40We've just been saving some money up so we had a bit of a deposit
0:09:40 > 0:09:43and we saw this advertised in the auction catalogue.
0:09:43 > 0:09:46- We thought we'd go for it. - Decided to take the plunge and...
0:09:46 > 0:09:49Right. What do you both do now?
0:09:49 > 0:09:53- I'm a financial adviser. - Oh, right, that's useful.
0:09:53 > 0:09:56That was handy. Jonathan works for...
0:09:56 > 0:09:58I run an economic development consultancy.
0:09:58 > 0:10:02The house itself, what did you like and dislike about that?
0:10:02 > 0:10:04THEY LAUGH
0:10:04 > 0:10:06It's got a nice setting.
0:10:06 > 0:10:10I like the fact that the back of it looks out over the woods. That's nice.
0:10:10 > 0:10:13The fact it's a cul-de-sac as well.
0:10:13 > 0:10:17That's good if kids are playing out in the street and what have you.
0:10:17 > 0:10:21- The outside looks good.- The bathroom is a particular bonus as well.
0:10:21 > 0:10:24As soon as you come into the property, its "Oh, God."
0:10:24 > 0:10:27There's clearly a lot of work needs to be done to it.
0:10:27 > 0:10:29- We like a challenge, don't we?- Yeah.
0:10:31 > 0:10:34As their first major doer-upper, Georgina and Jonathan
0:10:34 > 0:10:39have decided to keep the project as simple as possible.
0:10:39 > 0:10:42They've discounted building an extension because of the time factor
0:10:42 > 0:10:46and because they don't think there would be much additional profit in it.
0:10:46 > 0:10:49So, what are their plans for the place?
0:10:51 > 0:10:53Everything's going to come out down here.
0:10:53 > 0:10:56We're going to re-skim the whole house.
0:10:56 > 0:10:59Knock down the wall between the kitchen and the dining room
0:10:59 > 0:11:01- and then put the wall back up here. - Yeah.
0:11:01 > 0:11:04Make it like an open-plan kitchen/diner.
0:11:04 > 0:11:08- New bathroom, obviously!- You're not going to keep that one?- No!
0:11:08 > 0:11:10A nice shade of maroon.
0:11:10 > 0:11:14Get rid of the garage because that has asbestos on it.
0:11:14 > 0:11:20- We've got to sort out the garden. - Make the garden into lawn
0:11:20 > 0:11:24and make it more usable for a family.
0:11:24 > 0:11:27Are you going to keep the half-timbered effect? THEY LAUGH
0:11:27 > 0:11:31- Yeah, the mock-Tudor. - The mock-Tudor, it's nice, isn't it? 1930s, mock-Tudor.
0:11:31 > 0:11:33No, we probably won't keep that!
0:11:33 > 0:11:35It's not exactly our taste.
0:11:36 > 0:11:38I'm sure someone liked it at one point.
0:11:38 > 0:11:41I don't think, for the market we're going for,
0:11:41 > 0:11:43I don't think they'll want that.
0:11:43 > 0:11:45With a healthy budget of around 23,000,
0:11:45 > 0:11:48and the timescale of around three months,
0:11:48 > 0:11:51the couple have lined up builders to do most of the work.
0:11:53 > 0:11:55What are the builders going to do?
0:11:55 > 0:11:59They're going to... Basically, we're getting one contractor
0:11:59 > 0:12:01and they'll project manage it for us.
0:12:01 > 0:12:03We don't have the time, we both work full-time.
0:12:03 > 0:12:05We don't have the time to do that.
0:12:05 > 0:12:09But we'll do the unskilled stuff, taking the carpets up,
0:12:09 > 0:12:12taking the wallpaper off the walls,
0:12:12 > 0:12:14pulling the kitchen apart.
0:12:14 > 0:12:18Once this project's completed, what's the plans then?
0:12:18 > 0:12:22Sell it and do another one. Hopefully make some money!
0:12:22 > 0:12:26As George says, we should make a bit of profit out of this
0:12:26 > 0:12:29and then put that into the next development.
0:12:29 > 0:12:31Congratulations, good luck with it.
0:12:31 > 0:12:35- We look forward to seeing how you get on.- Cheers.
0:12:35 > 0:12:39Well, will Jonathan and Georgina's plan to do up this place
0:12:39 > 0:12:42and sell it on work out in these tough, financial times
0:12:42 > 0:12:45when it comes to buying and selling property?
0:12:45 > 0:12:49More importantly, will they manage to get rid of all the mock-Tudor,
0:12:49 > 0:12:52all will they be Eliza-beaten(?)
0:12:52 > 0:12:55You can find out, later in the show.
0:13:00 > 0:13:03Just outside Blackburn is the market town of Darwin.
0:13:03 > 0:13:06Formerly, an industrial mill town,
0:13:06 > 0:13:09the buildings reflect its wealthy status in Victorian times.
0:13:09 > 0:13:13Although, it's suffered some decline over the years,
0:13:13 > 0:13:15recent investment has seen an influx of new companies
0:13:15 > 0:13:18and it seems to be on the up.
0:13:18 > 0:13:20Like many towns in Lancashire,
0:13:20 > 0:13:24Darwin was a centre for the cotton and cloth industry
0:13:24 > 0:13:27during the Industrial Revolution.
0:13:27 > 0:13:31One legacy of this industrial past is a wealth of terraced houses,
0:13:31 > 0:13:34built to house the former mill workers.
0:13:34 > 0:13:37I'm here to see one of those little houses today.
0:13:37 > 0:13:41With easy access to the town centre, views across the moors
0:13:41 > 0:13:46and bowling green, today's lot is in a pretty decent spot.
0:13:46 > 0:13:49The guide price for this property is just £28,000.
0:13:49 > 0:13:53Unfortunately, the security shutters on this two-bedroomed mid-terrace
0:13:53 > 0:13:56are more than a little off-putting.
0:13:56 > 0:13:58Let's not judge it on face value.
0:13:58 > 0:14:01I'm going to cross over and take a closer look.
0:14:01 > 0:14:04The house formerly belonged to a housing association.
0:14:04 > 0:14:07The auction catalogue described it as being in poor decorative order
0:14:07 > 0:14:10and it's been vacant for some time.
0:14:16 > 0:14:20So far, from what I've seen, I'd hardly call it pretty.
0:14:20 > 0:14:22Maybe, inside will be better.
0:14:22 > 0:14:26Well, it's deceptively spacious once you come in here.
0:14:26 > 0:14:30A little dark because you have these big, old shutters on the front of the windows.
0:14:30 > 0:14:34Polystyrene tiles... You know, I always harp on about this
0:14:34 > 0:14:37but they've got to come down because they are a fire hazard.
0:14:37 > 0:14:40They don't to the property any justice, anyway.
0:14:40 > 0:14:44As well as this fireplace, it totally dominates the whole room.
0:14:44 > 0:14:47Not to my taste, but you could do a lot with it.
0:14:47 > 0:14:51I think, there's the possibility of a little bit of damp down here.
0:14:51 > 0:14:54It feels rather wet, so get that looked out
0:14:54 > 0:14:57and a rather unusual place to house a meter.
0:14:57 > 0:14:59They've put it into the wall.
0:14:59 > 0:15:01Overall, a really good-sized room.
0:15:01 > 0:15:04Yeah, not bad.
0:15:04 > 0:15:08Tiles and fireplaces aside, I'm quite encouraged,
0:15:08 > 0:15:11but let's hope that damp isn't a sign of things to come.
0:15:11 > 0:15:15It does get a little darker and dingier as you move through the property,
0:15:15 > 0:15:19but it's great news that you've got a large second reception room.
0:15:19 > 0:15:23Kitchen's a little bit on the small side, but it is adequate,
0:15:23 > 0:15:27and because it's tucked away, you could have this space as your dining area.
0:15:27 > 0:15:31You've got central heating in here, once these shutters have come down,
0:15:31 > 0:15:34I know the light will just flood through.
0:15:34 > 0:15:38In fact, this is a really big window area, so quite a bonus, I think.
0:15:38 > 0:15:41Obviously, the whole room is going to need replastering.
0:15:41 > 0:15:45There's obviously been some damage up there,
0:15:45 > 0:15:48though I did suspect earlier there was a damp problem...
0:15:48 > 0:15:52Mushrooms on toast, anybody? Look what I've spotted. Little collection of fungus.
0:15:52 > 0:15:56I think there's potentially a problem up there,
0:15:56 > 0:16:00so some damp coming from the roof, the bathroom, maybe,
0:16:00 > 0:16:03so whoever takes this on, I'd get that checked out.
0:16:03 > 0:16:06It's always worth getting an expert opinion.
0:16:06 > 0:16:10This might be a sign of a bigger problem such as a leaky roof,
0:16:10 > 0:16:14or, more likely in a house like this that's been unoccupied for a while,
0:16:14 > 0:16:19it might just be a case of getting some airflow back in to let it breathe.
0:16:22 > 0:16:24With a little tender loving care,
0:16:24 > 0:16:27the place could easily be brought back to life.
0:16:27 > 0:16:31Let's hope nothing untoward lurks upstairs.
0:16:31 > 0:16:36Now, properties of this era wouldn't have been built with an indoor bathroom.
0:16:36 > 0:16:40From the 1970s onwards, the plumbing was gradually moved inside,
0:16:40 > 0:16:44but often, the bathroom was just tagged on the back downstairs,
0:16:44 > 0:16:48and let's be honest, who is a fan of a downstairs bathroom? Not me.
0:16:48 > 0:16:53So one good thing here is that the bathroom has been installed upstairs.
0:16:53 > 0:16:57Much more desirable, but I think it could do with a total refit.
0:16:59 > 0:17:04Well, the refit and renovation needs to be done throughout,
0:17:04 > 0:17:07with the two bedrooms definitely needing some work.
0:17:07 > 0:17:09But the bare bones of a decent property are here.
0:17:11 > 0:17:13Not much outside space,
0:17:13 > 0:17:16but it's adequate to hang your washing out here.
0:17:16 > 0:17:21My feeling is that this could potentially be a nice little earner as a rental property.
0:17:21 > 0:17:25But what does a local estate agent make of this two-bed terrace
0:17:25 > 0:17:29that was guided at just £28,000?
0:17:29 > 0:17:32It's convenient and it suits a price need,
0:17:32 > 0:17:34it's at the budget end of the market.
0:17:34 > 0:17:37The property needs some modernisation, some TLC.
0:17:37 > 0:17:40I think the biggest issue is the size of the kitchen.
0:17:40 > 0:17:44And other properties in the area, what developers have done quite cleverly
0:17:44 > 0:17:47is to open the second reception room
0:17:47 > 0:17:51into the kitchen to make it a combined dining kitchen,
0:17:51 > 0:17:54with the existing kitchen becoming more of a utility area,
0:17:54 > 0:17:56and that would probably work quite well.
0:17:56 > 0:18:00The rest of the property is straightforward and doesn't need too much alteration.
0:18:00 > 0:18:04So would it be better to sell this place or do it up and let it out?
0:18:04 > 0:18:08The current climate, it's likely that it would favour the rental market.
0:18:08 > 0:18:12That's not to exclude the budget end of the sale market,
0:18:12 > 0:18:14but probably the rental market.
0:18:14 > 0:18:17So rental might be the best option. Let's talk numbers.
0:18:17 > 0:18:22I would normally expect to achieve £375 per calendar month.
0:18:22 > 0:18:25Once properties are refurbished, I would expect it to resell
0:18:25 > 0:18:28at a figure in the region of £60,000-£65,0000.
0:18:28 > 0:18:34A resale value of £65,000 or a rent of £4,500 a year
0:18:34 > 0:18:37on a property that was guided at just £238,000
0:18:37 > 0:18:40sounds like a potential money-maker to me.
0:18:40 > 0:18:42Once these old security shutters are off,
0:18:42 > 0:18:44and light is allowed to flood in,
0:18:44 > 0:18:48I actually think this could be a decent little property.
0:18:48 > 0:18:51And certainly a viable buy-to-let.
0:18:51 > 0:18:53So who wasn't deterred by the darkness?
0:18:53 > 0:18:56Let's head to auction and find out.
0:18:56 > 0:19:00This Darwen terraced house was one of the last lots of the day.
0:19:00 > 0:19:06So it was a quiet auction room preparing to do battle for it.
0:19:06 > 0:19:10I move on now to Lot 116, looking for 20?
0:19:10 > 0:19:12Thank you, 20 I've got.
0:19:12 > 0:19:1321 anywhere?
0:19:13 > 0:19:15Thank you, 21. 22?
0:19:15 > 0:19:1623.
0:19:16 > 0:19:1824 if you want.
0:19:18 > 0:19:22Thank you. 25. 26.
0:19:22 > 0:19:2426, new place.
0:19:24 > 0:19:2627. 28.
0:19:26 > 0:19:2829.
0:19:28 > 0:19:2930,000.
0:19:29 > 0:19:3230 back in, 31.
0:19:32 > 0:19:3432, sir? No? It's with you.
0:19:34 > 0:19:3931 for the first, 31 for the second, 31 for the third and final time...
0:19:39 > 0:19:41- All done. - BANGS GAVEL
0:19:41 > 0:19:43Sold, £31,000.
0:19:43 > 0:19:49For £31,000, the successful bidder was semi-retired orthodontist Chris.
0:19:49 > 0:19:51He's based over two hours away in Worcestershire,
0:19:51 > 0:19:55and has a small portfolio of mainly commercial properties.
0:19:55 > 0:19:59I wondered what attracted him to this run-down terraced house.
0:19:59 > 0:20:03- Chris, it's wonderful to meet you today, congratulations! - Thank you very much indeed.
0:20:03 > 0:20:06So, what made you want to buy this property at auction?
0:20:06 > 0:20:11Well, I saw it, and it looks a fantastic area, little parkland and a view over the tower,
0:20:11 > 0:20:15and there's a bowling green, so I thought this should be a good rental.
0:20:15 > 0:20:17Is this the only property you bought in the auction?
0:20:17 > 0:20:22No, I bought two others in Darwen that are slightly better condition,
0:20:22 > 0:20:23and some land in Essex.
0:20:23 > 0:20:26- Wow, so you did go on a job lot that day, didn't you?- Yes.
0:20:28 > 0:20:31So Chris has been on a bit of a spending spree.
0:20:31 > 0:20:36Residential properties will see a better return than leaving his money in the bank.
0:20:36 > 0:20:39Although he lives a distance away in Worcestershire,
0:20:39 > 0:20:42he bought the house in Darwen because he knows the area.
0:20:42 > 0:20:44His son already owns a house here,
0:20:44 > 0:20:48and his future daughter-in-law's family live here too.
0:20:48 > 0:20:49So, Chris, what do you do?
0:20:49 > 0:20:53Well, I used to be full time in orthodontics, hospital and practice,
0:20:53 > 0:20:58and retired a couple of years back, and just work two days a week.
0:20:58 > 0:21:01And since retiring, I took a tourist guide course,
0:21:01 > 0:21:03and I've got a thing called a Blue Badge,
0:21:03 > 0:21:08which is a national qualification to, really to allow you to tour guide,
0:21:08 > 0:21:12unsuspecting Americans, anywhere in the heart of England.
0:21:12 > 0:21:13Now, you said retired.
0:21:13 > 0:21:17It hardly seems like you're sitting back with your feet up at the moment.
0:21:17 > 0:21:19Not yet. Maybe one day.
0:21:19 > 0:21:22- Perhaps the bowling green over there in a few years' time. - SHE LAUGHS
0:21:22 > 0:21:25I'll come back in a few years and see you with your bowls!
0:21:25 > 0:21:26Creaking and groaning.
0:21:26 > 0:21:33With Chris's increasingly busy life, it could be a while before the bowling green beckons,
0:21:33 > 0:21:36and with this house, he's got plenty to get his teeth into.
0:21:36 > 0:21:39So, Chris, how do you intend to upgrade this place?
0:21:39 > 0:21:43The ceiling needs either removing or plastering over,
0:21:43 > 0:21:46the walls taken down and skimmed, the floor's fine,
0:21:46 > 0:21:50and the central heating looks as though it's not too bad.
0:21:50 > 0:21:51The front room has got some...
0:21:51 > 0:21:57Those polystyrene tiles, lovely, that need to come off,
0:21:57 > 0:22:01and then to be stripped down and replastered and skimmed.
0:22:01 > 0:22:04Now what about the little mushrooms that we can all see in the corner?
0:22:04 > 0:22:08Aah! Yes, yeah. They, any botanist here would know they're harmless.
0:22:08 > 0:22:11- I can't do a David Bellamy accent, but... - SHE LAUGHS
0:22:11 > 0:22:13- I'm sure...- Go on!
0:22:13 > 0:22:15I'm willing to try, they are lovely mushrooms.
0:22:15 > 0:22:18But hopefully they're not causing any problems at all there.
0:22:18 > 0:22:22- Did you get a survey on this property? - No, I haven't had a full survey.
0:22:22 > 0:22:24Looked around it, it looks pretty sound.
0:22:24 > 0:22:29No great cracks, it's been here since 1890, something like that,
0:22:29 > 0:22:31so I think it'll last me out.
0:22:31 > 0:22:33It's always risky not getting a survey.
0:22:33 > 0:22:35Let's hope this orthodontist
0:22:35 > 0:22:39doesn't discover more to straighten out than expected.
0:22:39 > 0:22:42He's bracing himself to do this in 12 weeks,
0:22:42 > 0:22:44and will need a fairly decent budget.
0:22:44 > 0:22:47How much money are you going to spend on this little house?
0:22:47 > 0:22:50We'd look at probably about £13,000-£14,000.
0:22:50 > 0:22:54- I mean, that's quite a healthy budget. - That should hopefully be all right.
0:22:54 > 0:22:58- So, are you going to be doing any of the work here? - No, I don't think so.
0:22:58 > 0:23:02I might do a bit of skivvying, a bit of labouring, but that's about it.
0:23:02 > 0:23:06You really want to keep those extra five days off as your days off!
0:23:06 > 0:23:10- Very, much so, yes! - Chris, I'm excited to see what it turns out like. Congratulations.
0:23:10 > 0:23:13- Thanks very much indeed.- Thank you. - Nice to meet you.
0:23:13 > 0:23:17From fixing teeth to tourist guide to property developer -
0:23:17 > 0:23:19hmm, Chris certainly likes to keep busy.
0:23:19 > 0:23:22And he's supposed to be retired! I don't think so.
0:23:22 > 0:23:25But I do think he's made a wise purchase here.
0:23:25 > 0:23:29If he can get this place fixed up for £13,000, and rent it out,
0:23:29 > 0:23:32well, that could indeed prove to be a solid investment.
0:23:32 > 0:23:35Now, that is offering a yield of around 9 to 10%.
0:23:35 > 0:23:40But of course, there's plenty that can go wrong with property renovating, as we know.
0:23:40 > 0:23:44So will it all go smoothly, or will it be more like pulling teeth?
0:23:44 > 0:23:49You can find out what happens later on in the programme.
0:23:49 > 0:23:53'Coming up, in Cornwall, a closer inspection worries me...'
0:23:53 > 0:23:58Once you start delving deeper into this property, I think it could turn out to be a bit of a money pit.
0:23:59 > 0:24:03'An estate agent is impressed by Chris's renovation in Lancashire,'
0:24:03 > 0:24:04Quite remarkable, really.
0:24:04 > 0:24:10Changed quite an ordinary property into something that's very nice, very modern.
0:24:10 > 0:24:14'But first, have Jonathan and Georgina put paid to the plum?'
0:24:14 > 0:24:19- We've taken out the kitchen and bathroom.- Yeah.- That was quite good fun, actually!- Yeah!
0:24:22 > 0:24:24'Back now to Bredbury in Cheshire,
0:24:24 > 0:24:32'where husband and wife Jonathan and Georgina purchased this three-bedroom Mock Tudor semi for £88,000.'
0:24:32 > 0:24:36'It was their first ever purchase at auction.'
0:24:36 > 0:24:41Just been looking for a project to do, and thought this was the perfect opportunity.
0:24:41 > 0:24:45We saw it in the catalogue, we thought there was probably a little bit of money to be made on it,
0:24:45 > 0:24:50it clearly needs some work, so we thought this was probably a good property to start with.
0:24:53 > 0:24:55'The couple bought the property as an investment.
0:24:55 > 0:25:01'The intention was to refurbish completely, and once finished, put it back on the market.
0:25:01 > 0:25:07'We returned five months later to see if this Mock Tudor semi has been brought into the 21st century.'
0:25:17 > 0:25:20'The property has been transformed.
0:25:20 > 0:25:22'The fake dark oak beams are no longer,
0:25:22 > 0:25:27'the dividing wall between the dining room and living room has been reinstated,
0:25:27 > 0:25:36'and an open plan kitchen/diner has been created at the back of the house.'
0:25:36 > 0:25:39'Gone is the woodchip wallpaper and tired linoleum flooring,
0:25:39 > 0:25:44'replaced by warm, neutral colours, carpets and original floors.'
0:25:45 > 0:25:51'It's a nice touch keeping those original 1930s doors and rejuvenating them.'
0:25:52 > 0:25:57We sort of took most of the rooms back to brick, so we ripped the plaster off.
0:25:57 > 0:26:02- Um...- Taken out the kitchen and bathroom.- Yeah.- That was quite good fun, actually!- Yeah!
0:26:02 > 0:26:05- THEY LAUGH - One of the better jobs, wasn't it? - Yeah.
0:26:05 > 0:26:09We've had it fully rewired throughout, and we've got new central heating.
0:26:09 > 0:26:13- New central heating. Just pretty much everything, really.- Yeah.
0:26:13 > 0:26:16New skirting boards, um, dipped and stripped the doors.
0:26:16 > 0:26:21- Couple of new windows, new kitchen and bathroom.- And we've also painted the exterior of the house as well.
0:26:21 > 0:26:25We think it's just freshened it up a little bit.
0:26:28 > 0:26:33The garage was here originally, and that was one of the first jobs I'd done.
0:26:33 > 0:26:37It wasn't in great condition, and it had an asbestos roof,
0:26:37 > 0:26:39so we decided to get that taken down, so...
0:26:39 > 0:26:42It was a relatively quick job to do.
0:26:42 > 0:26:46But we've also done the garden. That was a bit of a nightmare.
0:26:46 > 0:26:51We got four tons of topsoil ordered, and the day that we were moving it down the back,
0:26:51 > 0:26:56it was chucking it down with rain and we had this old rickety wheelbarrow
0:26:56 > 0:26:59which the guy who had the house before left us.
0:26:59 > 0:27:03After the first ton, one of the handles fell off the wheelbarrow,
0:27:03 > 0:27:06so trying to get it down there and into the back was a bit of a nightmare.
0:27:06 > 0:27:10But that was literally the only problem we had doing the house,
0:27:10 > 0:27:14It's been, sort of, a good experience, and we're looking forward to the next one.
0:27:20 > 0:27:24'It had been Jonathan and Georgina's intention to employ professional help
0:27:24 > 0:27:28'in the form of a project manager, as they both work full time.
0:27:28 > 0:27:30'How did that go?'
0:27:32 > 0:27:37We thought that would be easier for us, with us both working full time,
0:27:37 > 0:27:40- we thought, just dealing with one person.- Mmmm.
0:27:40 > 0:27:43But we had a couple of quotes for that, didn't we?
0:27:43 > 0:27:46Yeah, and it ended up being a lot more expensive than we thought,
0:27:46 > 0:27:49and to be honest, we thought we'd be better off doing it ourselves,
0:27:49 > 0:27:53cos we'd have a bit more control over what was going on.
0:27:55 > 0:28:00'So a job well done. How did they get on keeping to budget?'
0:28:02 > 0:28:09The original budget we said was, sort of, anywhere between 20 and 23,
0:28:09 > 0:28:11but we've spent a little bit more than that, we've spent 24.
0:28:11 > 0:28:15But there was things that we've got done that we hadn't originally.
0:28:15 > 0:28:20- Yeah, there's a couple of things, like the lintels above the windows needed doing...- Yeah.
0:28:20 > 0:28:24- ..and we didn't factor that in, so we've gone a little bit over budget.- Yeah.
0:28:24 > 0:28:30'Jonathan and Georgina purchased the house at auction for £88,000,
0:28:30 > 0:28:33'and spent a further £24,000 on renovation,
0:28:33 > 0:28:37'giving them an overall outlay of £112,000.
0:28:37 > 0:28:41'We asked two local property experts for their opinions on the result.'
0:28:42 > 0:28:44Well, fantastic, just absolutely great.
0:28:44 > 0:28:47You know, they've done such a good job,
0:28:47 > 0:28:52considering how it was when they bought it, brilliant, wonderful.
0:28:52 > 0:28:55I think the finish of the property has been done really nicely.
0:28:55 > 0:28:58They've thought about what they've done,
0:28:58 > 0:29:00they've put time and effort into it,
0:29:00 > 0:29:03and they've not scrimped on anything to try and save money,
0:29:03 > 0:29:06and it's been well planned.
0:29:06 > 0:29:10'How much could the property be worth if it were sold, now it's been refurbished?'
0:29:13 > 0:29:18I'd like to market the property for £135,000.
0:29:18 > 0:29:23I believe you could put this property on the market for £155,000.
0:29:23 > 0:29:26- I'm really pleased with that. - Yeah, there's, that's good, isn't it?- Yeah.
0:29:26 > 0:29:32- Even if we get the lower figure, I'd be happy with that.- Yeah, we'd be more than happy with that.- Yeah.
0:29:35 > 0:29:37'On the basis of those valuations,
0:29:37 > 0:29:42'that would give Jonathan and Georgina a pre-tax profit of between £23,000-£43,000
0:29:42 > 0:29:44'before the usual deductions.
0:29:44 > 0:29:49'What could the potential monthly rental income be if the property were rented out?'
0:29:51 > 0:29:54I think if the property went on the rental market,
0:29:54 > 0:29:58I'd be achieving £675 per calendar month.
0:29:58 > 0:30:03I think for the property in the rental market, you'd be looking to achieve £650 per calendar month.
0:30:03 > 0:30:05- That's a good price, isn't it?- Yeah.
0:30:05 > 0:30:09But we're not looking to rent, we're looking to sell, but it's good to know.
0:30:09 > 0:30:12Yeah, it's nice to know that we'd get a decent amount for it.
0:30:12 > 0:30:18'Jonathan and Georgina have now accepted an offer of £138,000 for the house.
0:30:18 > 0:30:22'So, is it thumbs up for their first auction speculation?'
0:30:23 > 0:30:27It's been a really good process, I think we've learnt a lot through doing it,
0:30:27 > 0:30:31there's been some tricky times, but it's been good, I've enjoyed it.
0:30:45 > 0:30:49This is Torpoint, the gateway to Cornwall, quite literally.
0:30:49 > 0:30:52Plymouth is just 500 yards across the estuary there,
0:30:52 > 0:30:55but just because you're only seven minutes away from Devon,
0:30:55 > 0:31:01don't think the people here aren't proud of their Cornish origins, based around the dockyards.
0:31:01 > 0:31:06Big question is, will I find a property to be proud of?
0:31:06 > 0:31:10'The Torpoint Ferry runs regularly, connecting these two counties,
0:31:10 > 0:31:15'and making this area a very viable commuter option for those working in busy Plymouth.
0:31:15 > 0:31:18'Hopefully you won't have to use that submarine
0:31:18 > 0:31:19if the ferry's out of order.'
0:31:23 > 0:31:30Well, houses with a sea or estuary view are always highly desirable and command higher prices,
0:31:30 > 0:31:33so I'm delighted to say that the property I'm here to see is this -
0:31:33 > 0:31:38it's a four-bed mid-terrace, at the guide price of £145,000.
0:31:38 > 0:31:41And from the exterior, it's as stunning as its outlook.
0:31:42 > 0:31:46'For an auction lot, this property is surprisingly neat and tidy,
0:31:46 > 0:31:50'with attractive paintwork and a lovely little front garden.
0:31:50 > 0:31:53'Let's hope the interior matches the exterior.'
0:31:53 > 0:31:56So what have we got? Well, through the front door.
0:31:56 > 0:32:00Nice you've got this little porch area there, keeps the wind and rain and the cold out.
0:32:00 > 0:32:04Down this corridor and straightaway, the house is a lot longer
0:32:04 > 0:32:08and deeper than it would first appear, which is a good start.
0:32:08 > 0:32:12Then this room...is absolutely sensational, really big,
0:32:12 > 0:32:16lots of space, great bay-fronted window, looking out
0:32:16 > 0:32:20across the estuary, making the most of those views.
0:32:20 > 0:32:23This room, nice size, but straightaway, I'm seeing,
0:32:23 > 0:32:28the decoration doesn't match up with the quality on the outside.
0:32:28 > 0:32:31It's a classic - people paint the outside of the house,
0:32:31 > 0:32:35so it looks good in the photos, when they're trying to sell it.
0:32:35 > 0:32:40Look in the auction catalogue, and you'd think inside was nice as well.
0:32:40 > 0:32:43Classic example of that not being the case.
0:32:45 > 0:32:48'So, don't be fooled by those exterior photos -
0:32:48 > 0:32:51'check the interior, too.'
0:32:51 > 0:32:56# And I started looking for a warning sign... #
0:32:56 > 0:32:59'Because, despite its great size and good views,
0:32:59 > 0:33:03'this is a disappointing start to the property.'
0:33:03 > 0:33:08You see straightaway some of the modifications that you would make.
0:33:08 > 0:33:13Right through to the back, you find the kitchen in a right old state.
0:33:13 > 0:33:17But why on earth isn't the kitchen in this room?
0:33:17 > 0:33:20It would make more sense - it's bigger,
0:33:20 > 0:33:24it's perfect for a decent-sized galley kitchen, and you'd have that,
0:33:24 > 0:33:29then, as your utility area - that I would change straightaway,
0:33:29 > 0:33:33to totally transform the living space in this house.
0:33:33 > 0:33:38'The garden is another area that needs some serious work.
0:33:38 > 0:33:41'And it doesn't get much better upstairs.
0:33:44 > 0:33:48'The rooms themselves are nice enough, though not huge.
0:33:48 > 0:33:50'A bedroom at the back which, in the past,
0:33:50 > 0:33:53'has apparently been used as a woodwork room.
0:33:53 > 0:33:55'One next-door...
0:33:57 > 0:34:02'The bathroom in the middle, with a decent double towards the front.
0:34:02 > 0:34:05'But I've saved the best bit till last.'
0:34:05 > 0:34:08This is the most spectacular of the bedrooms.
0:34:08 > 0:34:12Nice size, with cupboard space, or whatever. However,
0:34:12 > 0:34:16views out onto the estuary there could be better.
0:34:16 > 0:34:20It's got double glazing, but I'd like to see sash windows in here,
0:34:20 > 0:34:24to lift up to get the noise of the seagulls and the smell of the ocean.
0:34:24 > 0:34:28And it looks like there's some rot in the floorboards.
0:34:28 > 0:34:32So, at first glance, it's OK, but delve deeper into this property,
0:34:32 > 0:34:36and I think it could turn out to be a bit of a money pit.
0:34:36 > 0:34:38Mmm.
0:34:38 > 0:34:42'It's never good to see an exterior wall from the inside of a room!
0:34:42 > 0:34:45'That ought to be investigated.
0:34:45 > 0:34:48'The double glazing also needs looking at.
0:34:48 > 0:34:53'It has been poorly fitted and some of the windows don't even open.
0:34:53 > 0:34:58'But, you know, the bones of this place are in good shape.
0:34:58 > 0:35:02'It could be a lovely family home - there's a great vibe here,
0:35:02 > 0:35:07'or is it just the sun and sea air? Time for a second opinion.
0:35:08 > 0:35:11'So, with the house guided at £145,000,
0:35:11 > 0:35:16'we asked a local estate agent what he thought of the place.'
0:35:17 > 0:35:21The location is fantastic, due to the proximity to the water,
0:35:21 > 0:35:25and it's only ten minutes via the ferry to Plymouth city centre.
0:35:25 > 0:35:29'For that £145,000 guide price, this could be a plum buy
0:35:29 > 0:35:32'for any investor.
0:35:32 > 0:35:36'But when its problems are sorted and the interior spruced up,
0:35:36 > 0:35:38'how would the figures stack up?'
0:35:38 > 0:35:41If the work's done well, I'd be looking at £200,000.
0:35:41 > 0:35:43'And the rental figures?'
0:35:43 > 0:35:47I would expect it to rent for at least £750 per calendar month.
0:35:47 > 0:35:52Sadly, the interior doesn't quite live up to the exterior -
0:35:52 > 0:35:56there's a lot of work to do to sort this place out.
0:35:56 > 0:36:00But somebody will love it because of that view, and who can blame them?
0:36:00 > 0:36:04Let's find out what happened when it went under the hammer.
0:36:10 > 0:36:13Lot 67, it's 145,000.
0:36:13 > 0:36:18145 straight in, bang - knock out the competition! 135?
0:36:18 > 0:36:21Not going less than 130, I tell you... I don't have to.
0:36:21 > 0:36:24Thank you. At 130.
0:36:24 > 0:36:27At 132? 132. 134?
0:36:27 > 0:36:29136.
0:36:29 > 0:36:31136 is stood on there. 138.
0:36:31 > 0:36:34140 on my right, I've got. 140.
0:36:34 > 0:36:38At 140... Is there a one somewhere?
0:36:38 > 0:36:41141, got you, at 141. 142.
0:36:41 > 0:36:44142. At 142...
0:36:44 > 0:36:48143. 144. 144...
0:36:48 > 0:36:50145.
0:36:50 > 0:36:53140...five-and-a-half...
0:36:53 > 0:36:55146.
0:36:55 > 0:36:56146...
0:36:56 > 0:37:00At 146. Madam - 146.5.
0:37:00 > 0:37:02147.
0:37:02 > 0:37:06147...and-a-half?
0:37:06 > 0:37:10- SHE MOUTHS - 148 - thank you. 148.
0:37:10 > 0:37:12148. 149. 149...
0:37:12 > 0:37:15- SHE MOUTHS - 150. 150.
0:37:15 > 0:37:18At 150...
0:37:18 > 0:37:20At 150 once,
0:37:20 > 0:37:25at 150 twice, at 150 - second, third and last time,
0:37:25 > 0:37:29all done at 1-5-0 and out.
0:37:29 > 0:37:32150 - madam, miss, yours, well done.
0:37:32 > 0:37:36'Making that successful bid of 150,000 was Wendy.
0:37:36 > 0:37:41'She currently lives in London but is originally from the West Country.
0:37:41 > 0:37:45'Her plan is to return to this part of the world, move into this house,
0:37:45 > 0:37:47'and enjoy the views all day long.
0:37:47 > 0:37:50'I met her in the sunshine to find out more.'
0:37:50 > 0:37:54- Wendy!- Hi! - Congratulations!- Thank you!
0:37:54 > 0:37:58- Well, you can't knock the spot, can you?- No, it's a lovely place.
0:37:58 > 0:38:03Apart from this, why did you want to buy the house - or was this it?!
0:38:03 > 0:38:08Obviously, the location is fantastic - that was one reason.
0:38:08 > 0:38:12And I've been trying to move to Cornwall for about 2½ years,
0:38:12 > 0:38:15- so this is ideal. - Why do you want to move here?
0:38:15 > 0:38:20I love the countryside, I like watersports - surfing, windsurfing...
0:38:20 > 0:38:22So, tell me more about what you do?
0:38:22 > 0:38:24I work in health and fitness,
0:38:24 > 0:38:27- I'm a personal trainer and pilates instructor.- Great.
0:38:27 > 0:38:30- And currently where?- In the London area at the moment.
0:38:30 > 0:38:34- Why do you want to move back here? - Well, I just love it.
0:38:34 > 0:38:41Beautiful countryside, love the sea - long-term plans coming to fruition.
0:38:41 > 0:38:44- That's wonderful. You couldn't get much closer, could you?- No!
0:38:44 > 0:38:48'And on a day like today, who wouldn't want to live here?
0:38:48 > 0:38:52'I can see a great partnership - an out-of-condition property
0:38:52 > 0:38:56'and a fitness instructor - what a perfect match!'
0:38:56 > 0:39:00# Fit as a fiddle, ready for love
0:39:00 > 0:39:04# I could jump over the moon up above... #
0:39:04 > 0:39:08As you can see, it's a bit of a project. It's got enough space -
0:39:08 > 0:39:12I'm running my business from home,
0:39:12 > 0:39:17and in order to get the size, it had to be something in need of doing up.
0:39:17 > 0:39:20The survey has thrown up a few things.
0:39:20 > 0:39:25- That you didn't know about? - I wouldn't have, without the survey.
0:39:25 > 0:39:29- So you had it done before?- Yes, just the day before the auction.
0:39:29 > 0:39:31And what needed to be done?
0:39:31 > 0:39:36Erm, quite a few things - roof, damp-proofing,
0:39:36 > 0:39:40plasterwork... Yeah, quite a long list.
0:39:40 > 0:39:43Which bits were a surprise?
0:39:43 > 0:39:47- A bit more work on the roof than I expected.- It doesn't look too bad...
0:39:47 > 0:39:52Yeah, the front's OK, it's more the little tenement roof at the back.
0:39:52 > 0:39:56And there's some floor issues, some damp problems,
0:39:56 > 0:40:00those kind of things, obviously all the plumbing, rewiring.
0:40:00 > 0:40:04- Mm-hmm.- It's got a very old kind of boiler in there!
0:40:04 > 0:40:09'It's a good lesson to get a pre-auction survey done.
0:40:09 > 0:40:14'In Wendy's case, discovering those problems mean she held back £10,000
0:40:14 > 0:40:18'from her auction limit, which will go towards the renovation work.'
0:40:18 > 0:40:22- What exactly are you going to do to the house?- OK, so, first of all,
0:40:22 > 0:40:25clear it all out - going to start with the back yard.
0:40:25 > 0:40:29We can't do anything until that's cleared out.
0:40:29 > 0:40:32It's holding a lot of water in that area.
0:40:32 > 0:40:36Then strip off all the wallpaper, do the re-plastering,
0:40:36 > 0:40:41get the roof done, there's work to be done on the windows,
0:40:41 > 0:40:46and then take it from there, really - probably plumbing next after that.
0:40:46 > 0:40:50One thing I thought was an obvious improvement was to
0:40:50 > 0:40:54- bring the kitchen further into the house.- Yes, into that middle room.
0:40:54 > 0:40:59- Keeping the open-plan living area as it is?- I would think so, yes.
0:40:59 > 0:41:03- It's lovely and big.- Put a wood floor in there - that would be nice.
0:41:03 > 0:41:06- Make the most of the views. - Absolutely.
0:41:06 > 0:41:11- What about upstairs?- Probably keep the layout pretty much as it is.
0:41:11 > 0:41:15The smallest bedroom would be a storeroom for my fitness equipment.
0:41:15 > 0:41:19So, not a great deal - the bathroom would more or less stay where it is.
0:41:19 > 0:41:23- But be updated, presumably. - Yes, obviously, yes.
0:41:23 > 0:41:27I don't think primrose yellow will fit in, in that style!
0:41:27 > 0:41:31- And what timescale have you got?- Erm...
0:41:31 > 0:41:34To do the major work, three to six months.
0:41:34 > 0:41:37Obviously, I'm still freelancing in London as well,
0:41:37 > 0:41:42so I'll be to-ing and fro-ing a bit, and will need to organise
0:41:42 > 0:41:46all the work - do quite a lot ourselves, with friends and family,
0:41:46 > 0:41:50and get some people in for the more specialist stuff.
0:41:50 > 0:41:53'The house may be a bit tired,
0:41:53 > 0:41:57'but fitness instructor Wendy has a healthy budget of £25,000.
0:41:57 > 0:42:01'If she does get family and friends onboard, it should be enough
0:42:01 > 0:42:06'to see this house transformed from out of puff into a medal winner.'
0:42:06 > 0:42:09- What are you most looking forward to?- Finishing it!
0:42:09 > 0:42:12You've a great place, and an amazing location,
0:42:12 > 0:42:16- so, congratulations.- Thank you. - And good luck with it.- Thank you.
0:42:16 > 0:42:19Well, fitness instructor Wendy has got a big job on
0:42:19 > 0:42:23to get this place into shape, but with views like that,
0:42:23 > 0:42:27it's going to be worth it - so, will we return to find a healthy house
0:42:27 > 0:42:31or will it still need a workout? Find out later in the show.
0:42:34 > 0:42:37It's been a while now since we last visited those properties.
0:42:37 > 0:42:41There should have been some work done, but you never know.
0:42:41 > 0:42:46All sorts of problems can arise for buyers - let's find out about ours.
0:42:47 > 0:42:51Just outside Blackburn in Lancashire was where I found
0:42:51 > 0:42:55a traditionally-built, stone terrace, two-bedroom house.
0:42:55 > 0:42:59This property may have had fine views out,
0:42:59 > 0:43:02but it was not the prettiest of sights within.
0:43:02 > 0:43:06With security shutters over the windows, damp walls
0:43:06 > 0:43:11and collapsing ceilings, this place had certainly seen better days.
0:43:11 > 0:43:14It was, to say the least, a little down in the mouth.
0:43:14 > 0:43:18Who better to fix it up than semi-retired orthodontist Chris?
0:43:18 > 0:43:21He snapped this property up for just £31,000,
0:43:21 > 0:43:25but being based in Worcester, and still doing part-time orthodontistry
0:43:25 > 0:43:28along with working as a tour guide,
0:43:28 > 0:43:31had he bitten off more than he could chew?
0:43:31 > 0:43:33So, will you be doing any of the work?
0:43:33 > 0:43:36No, I don't think so, maybe a bit of skivvying,
0:43:36 > 0:43:38a bit of labouring, but that's about it.
0:43:38 > 0:43:42You want to keep those extra five days off as your days off!
0:43:42 > 0:43:45Very much so, yes.
0:43:45 > 0:43:49# Today I swear I'm not going anything, nothing at all... #
0:43:49 > 0:43:54So, apart from providing £13,000- £14,000 to a builder to do the work,
0:43:54 > 0:43:58Chris was hoping to be fairly hands-off!
0:43:58 > 0:44:03Four months later, has his hands-off approach paid dividends?
0:44:07 > 0:44:10From the outside, it's certainly improved.
0:44:10 > 0:44:14He got rid of the security shutters, put in new windows and doors
0:44:14 > 0:44:18and gave it a fresh lick of paint, too. And inside...
0:44:23 > 0:44:26The changes we made in this room - the fireplace,
0:44:26 > 0:44:31brick fireplace, has gone, opening it out to make it brighter and cleaner.
0:44:33 > 0:44:37And the awful ceiling - polystyrene tiles -
0:44:37 > 0:44:40that's gone, and a new window,
0:44:40 > 0:44:44and generally, flooring and re-plastering.
0:44:48 > 0:44:51That's a much-improved first impression.
0:44:51 > 0:44:54With wooden flooring laid throughout,
0:44:54 > 0:44:58it flows naturally into the rear reception room.
0:45:02 > 0:45:05There's been a fair bit of change in this room.
0:45:05 > 0:45:09The debate was whether to put the kitchen in here,
0:45:09 > 0:45:12and leave that as a utility room.
0:45:12 > 0:45:17But we decided to leave it out there, because this is a nice-sized room,
0:45:17 > 0:45:21and it makes it two reception rooms rather than a kitchen-diner.
0:45:21 > 0:45:25The other changes made - obviously new window,
0:45:25 > 0:45:29re-plastering, and the floor again.
0:45:29 > 0:45:34There's an alcove there that can be used as storage and various things.
0:45:38 > 0:45:44Chris is planning to rent this house out. As a rental property, I think
0:45:44 > 0:45:49leaving the kitchen where it was was definitely the right decision.
0:45:50 > 0:45:55Upstairs, it's also been a case of making good the existing rooms.
0:45:58 > 0:46:02New plasterwork, decoration, carpets and windows
0:46:02 > 0:46:05in both of the bedrooms.
0:46:07 > 0:46:13The sorry old bathroom has been rejuvenated with new flooring.
0:46:15 > 0:46:19With the back yard tidied up, this house looks ready to rent,
0:46:19 > 0:46:22so, is Chris happy with the end result?
0:46:22 > 0:46:26Really pleased with it. I saw it for the first time yesterday
0:46:26 > 0:46:30decorated - it was only finished last week -
0:46:30 > 0:46:33and so we've only seen it in stages.
0:46:34 > 0:46:38Chris has been in regular contact with his builders throughout,
0:46:38 > 0:46:42so he was across all the problems.
0:46:42 > 0:46:46There was a great big fungus on the floor there.
0:46:46 > 0:46:48There was some damp in the wall -
0:46:48 > 0:46:52possibly a leaking pipe from next-door that we're looking at.
0:46:52 > 0:46:55But nothing major - everything else has gone smoothly.
0:46:55 > 0:46:59Let's hope he gets to the root of that damp soon.
0:46:59 > 0:47:03Generally, this house has worked out really well,
0:47:03 > 0:47:07but it wasn't the only house Chris bought in Darwen at the auction.
0:47:10 > 0:47:15Three in Darwen - one has been let about a month ago,
0:47:15 > 0:47:18tenants settled in and seem very happy -
0:47:18 > 0:47:21it's done nicely like this one.
0:47:21 > 0:47:24The other one's on the market about a week ago,
0:47:24 > 0:47:28and this one's raring to go as soon as the cameras go out.
0:47:28 > 0:47:32All these properties were bought as an investment,
0:47:32 > 0:47:35to get a better return on his savings.
0:47:35 > 0:47:38As they say, you have to speculate to accumulate.
0:47:38 > 0:47:42Having bought this house for £31,000 at auction,
0:47:42 > 0:47:45Chris had set a reasonably healthy budget of £13,000
0:47:45 > 0:47:49to get it up to scratch to rent out.
0:47:51 > 0:47:55It's not quite gone according to budget, but not far over.
0:47:55 > 0:48:00It's ended up at £15,800, which is about 2,000-3,000 over the budget.
0:48:02 > 0:48:05With a £31,000 purchase price
0:48:05 > 0:48:08and his budget of £15,888,
0:48:08 > 0:48:13that's a total outlay just short of 47,000, plus costs and fees.
0:48:13 > 0:48:17So, has this been a solid investment?
0:48:17 > 0:48:21What do two local estate agents think?
0:48:21 > 0:48:25Quite remarkable, really. Changed quite an ordinary property
0:48:25 > 0:48:28into something very nice, modern, contemporary.
0:48:28 > 0:48:30Very fresh-looking, well-presented.
0:48:30 > 0:48:33It's a traditional, mid-row, terraced property,
0:48:33 > 0:48:36but done to a very good standard - the amenities are superb,
0:48:36 > 0:48:38and it's ready for use.
0:48:38 > 0:48:41Although he really bought it as a rental,
0:48:41 > 0:48:45Chris does have nearly £47,000 invested here -
0:48:45 > 0:48:47so, how might it do on resale?
0:48:47 > 0:48:52If it was placed on the market for sale, you would probably place it on
0:48:52 > 0:48:55with an initial asking price of £65,000.
0:48:55 > 0:49:00We would value this property in the region of £70,000.
0:49:00 > 0:49:03Much more than I'd anticipated, with the market being poor.
0:49:03 > 0:49:05So, yeah, great news.
0:49:05 > 0:49:08So, he's nearly doubled the value -
0:49:08 > 0:49:13that would be a potential pre-tax profit, before tax and expenses,
0:49:13 > 0:49:15of between £18,000 and £24,000.
0:49:15 > 0:49:18But this one's more about rental.
0:49:18 > 0:49:21On the rental market, it should achieve a rental
0:49:21 > 0:49:24of around £425 per calendar month.
0:49:24 > 0:49:29On this property, we could achieve about £425 per calendar month.
0:49:29 > 0:49:32I was expecting a lot less - between 350-375.
0:49:32 > 0:49:34But 425 is fantastic.
0:49:34 > 0:49:39He's right - £425 a month IS fantastic.
0:49:39 > 0:49:43That's £5,100 a year, or an impressive 11% yield
0:49:43 > 0:49:46on that £47,000 investment.
0:49:46 > 0:49:50So, he must be pleased at how it's all gone.
0:49:50 > 0:49:55As a development, it's been good, because I haven't had to do anything.
0:49:55 > 0:49:57So, apart from stumping up the money,
0:49:57 > 0:50:02Chris has been able to take a back seat AND make a healthy return.
0:50:02 > 0:50:05# Nothing at all... #
0:50:05 > 0:50:09If only it was always this straightforward!
0:50:16 > 0:50:20Back now to Torpoint in Cornwall, where fitness instructor Wendy
0:50:20 > 0:50:25bought this four-bedroomed, mid-terraced house for £150,000.
0:50:25 > 0:50:29Originally from Devon, she's lived in London for 12 years,
0:50:29 > 0:50:33and was keen to move back to the West Country, to live by the sea.
0:50:33 > 0:50:38But the property needed a lot more work than it might have seemed,
0:50:38 > 0:50:41as a pre-auction survey revealed.
0:50:41 > 0:50:45- What did it say needed to be done? - Quite a few things.
0:50:45 > 0:50:49Roof, damp-proofing, obviously plasterwork, and, er,
0:50:49 > 0:50:52yeah, quite a long list.
0:50:52 > 0:50:5416 months later, we've returned
0:50:54 > 0:50:59to a less sunny Torpoint than the one we first visited,
0:50:59 > 0:51:03to see if Wendy's managed to whip this old property into shape.
0:51:13 > 0:51:17The renovation is a fair way from being over, but work has been done
0:51:17 > 0:51:21to strip back and re-plaster the living room.
0:51:21 > 0:51:24It's the same story with the rooms at the back.
0:51:24 > 0:51:29Wendy had hoped to be living here by now - why isn't she?
0:51:31 > 0:51:34The front of the house was finished, the new windows were in
0:51:34 > 0:51:38and everything, the roof was done, all re-plastered, etc.
0:51:38 > 0:51:43And then...the only final bit of roof that hadn't been done
0:51:43 > 0:51:44was the bay window roof,
0:51:44 > 0:51:48so we had that done as a separate job.
0:51:48 > 0:51:52But unfortunately, the heat work on the roof, obviously,
0:51:52 > 0:51:56sparked onto a timber and started a fire.
0:51:56 > 0:51:59The front of the house was declared unsafe,
0:51:59 > 0:52:02as major structural joists had been badly damaged,
0:52:02 > 0:52:05adding time to the repair.
0:52:05 > 0:52:08The tough winter had already slowed the refurbishment down.
0:52:08 > 0:52:11The fire slowed things down further,
0:52:11 > 0:52:15as Wendy had to wait for the insurance to be sorted out.
0:52:15 > 0:52:17What other damage did the fire do?
0:52:17 > 0:52:22The damage was fairly localised to the front of the house on two floors.
0:52:22 > 0:52:26Erm, but there was a lot of soot and smoke damage, and obviously,
0:52:26 > 0:52:30that permeates through the whole house,
0:52:30 > 0:52:32so it was all quite black!
0:52:32 > 0:52:35What a huge shame.
0:52:35 > 0:52:39But I'm glad Wendy can still look on the bright side,
0:52:39 > 0:52:42and whilst it's been an undoubted setback,
0:52:42 > 0:52:46structurally, everything is fine now.
0:52:49 > 0:52:53Although it may not look like it superficially,
0:52:53 > 0:52:57a lot of the hard graft has already been done.
0:53:01 > 0:53:05Even the back garden has all been sorted.
0:53:07 > 0:53:12However, given the circumstances, Wendy's plans have now changed.
0:53:12 > 0:53:17Because it took so many months to sort out, I just though, "Really,
0:53:17 > 0:53:20"I need to... By the time I've then refurbished,
0:53:20 > 0:53:24"I'm going to be at the ceiling value for the area,"
0:53:24 > 0:53:28and I'd really lost a little bit of heart on it, to be honest,
0:53:28 > 0:53:32so I thought, "Well, I'll just put the property back on the market,
0:53:32 > 0:53:37"and see what the response is." For anyone coming in now,
0:53:37 > 0:53:40a considerable amount of the work has been done.
0:53:40 > 0:53:45Maybe they'll come in with renewed enthusiasm, energy and so on,
0:53:45 > 0:53:48and just take it, take it to the end.
0:53:48 > 0:53:53That is sad, but with the fire repairs covered by insurance,
0:53:53 > 0:53:57hopefully she's not lost out too much financially.
0:53:57 > 0:53:59How much has the renovation cost?
0:53:59 > 0:54:04I've probably spent about 20,000 in total, yeah.
0:54:04 > 0:54:07The major costs I suppose would be on the roof,
0:54:07 > 0:54:10er, quite a few new windows
0:54:10 > 0:54:13and some building work
0:54:13 > 0:54:17in terms of, sort of, repair of the walls -
0:54:17 > 0:54:19the rear wall had to be tied in to the property,
0:54:19 > 0:54:22because it hasn't been tied in properly,
0:54:22 > 0:54:25and quite a lot of wall repairs in terms of plastering,
0:54:25 > 0:54:28and I don't know if you remember,
0:54:28 > 0:54:32but upstairs there were some holes in one wall,
0:54:32 > 0:54:35some big, major cracking repaired,
0:54:35 > 0:54:39which was more than superficial cracking, and things like that.
0:54:41 > 0:54:44Added to the purchase price of 150,000
0:54:44 > 0:54:50Wendy's spend of £20,000 brings her total outlay to 170,000.
0:54:50 > 0:54:55What do two local estate agents think of it now?
0:54:55 > 0:54:58It's a lovely, period, terraced property,
0:54:58 > 0:55:01in a fantastic waterside location within Torpoint.
0:55:01 > 0:55:06Since the fire damage, the property has had structural works done,
0:55:06 > 0:55:10and it's been cleared out, so it's more of a blank canvas now,
0:55:10 > 0:55:12rather than such a large project.
0:55:12 > 0:55:17With its prime location, what rent could it earn?
0:55:17 > 0:55:22I would put it on the rental market for around £800 per calendar month.
0:55:22 > 0:55:27I would expect it to achieve £750 per calendar month.
0:55:27 > 0:55:31Erm, I would say that's about right - there's not been a lot of change
0:55:31 > 0:55:35in the rental market since I bought it, so it sounds about on target.
0:55:35 > 0:55:39That would give a yield of around 5.5%, but Wendy is selling,
0:55:39 > 0:55:42so what sale price would they estimate?
0:55:42 > 0:55:44In today's market, I would expect the property
0:55:44 > 0:55:47to achieve in the region of £175,000.
0:55:47 > 0:55:49If I was to put it up for sale,
0:55:49 > 0:55:52I would be happy to market it in the region of £190,000.
0:55:52 > 0:55:56You know, there's a big difference between them.
0:55:56 > 0:55:59I think 190, in its current condition, is quite optimistic,
0:55:59 > 0:56:03but somewhere between the two I think is about spot on.
0:56:03 > 0:56:06That would give Wendy a pre-tax profit
0:56:06 > 0:56:09of between £5,000 and £15,000.
0:56:09 > 0:56:13The project has had its challenges - how would she sum it up?
0:56:13 > 0:56:18It's been a big project that I took on. I learned a lot doing it.
0:56:18 > 0:56:23Having the fire - I certainly know a lot more about fire than I did.
0:56:23 > 0:56:26It's an experience, yes!
0:56:26 > 0:56:30Have the challenges she faced made her reconsider her decision
0:56:30 > 0:56:32to relocate to the South-West?
0:56:32 > 0:56:34Absolutely not. I love Cornwall,
0:56:34 > 0:56:37I've wanted to live here for over two years.
0:56:37 > 0:56:40I'm definitely staying in the county.
0:56:42 > 0:56:46In the world of property, there is always something new to learn,
0:56:46 > 0:56:49and we'll have more advice for you next time.
0:56:49 > 0:56:52- Join us then for more Homes Under The Hammer.- Goodbye.- Goodbye.
0:56:58 > 0:57:01Subtitles by Red Bee Media Ltd