0:00:02 > 0:00:05We all know that the price of property can go down as well as up,
0:00:05 > 0:00:09so it's really important to buy at the right price in the first place.
0:00:09 > 0:00:13And one good way to do that is to buy your home under the hammer.
0:00:38 > 0:00:41Well, if you'd like to have a go at buying at auction,
0:00:41 > 0:00:45but haven't done so far, then maybe now is the time to start.
0:00:45 > 0:00:49The market is always changing, so you have to judge when is the right time to buy.
0:00:49 > 0:00:54Today's bidders have already put their money where their mouth is. Here's what they bought.
0:00:55 > 0:01:00In Woodhouse, Leeds, a property that gets double thumbs up from me.
0:01:00 > 0:01:04I think it's got great potential. Yeah, really.
0:01:05 > 0:01:11In Croydon, Surrey, a house that needs tearing to shreds.
0:01:11 > 0:01:15Now you can see, oh my goodness, it needs ripping apart.
0:01:15 > 0:01:18And I fear it's time for this old community centre in Lincoln
0:01:18 > 0:01:20to exit stage left.
0:01:20 > 0:01:26Sadly, I think in reality it might be the final curtain call for this place.
0:01:27 > 0:01:30All of these properties were sold at auction, so we find out
0:01:30 > 0:01:34who bought them and what they paid for them when they went under the hammer.
0:01:34 > 0:01:36Sold.
0:01:39 > 0:01:42This is Leeds, birthplace of Chris Moyles
0:01:42 > 0:01:45and Scary Spice herself, Mel B.
0:01:45 > 0:01:48# Every boy and every girl Spice up your life... #
0:01:50 > 0:01:54Not only that, but this cosmopolitan city in Yorkshire is home
0:01:54 > 0:01:58to the biggest student population in the UK outside London.
0:01:59 > 0:02:04I'm in an area called Woodhouse, about a mile from Leeds city centre.
0:02:04 > 0:02:07It's a really popular area for students,
0:02:07 > 0:02:11as you can literally walk to the Leeds University campuses from here.
0:02:11 > 0:02:15And it's got great transport links into the city centre and some local shops.
0:02:15 > 0:02:18So what is there not to like?
0:02:18 > 0:02:22# Baby, I like it The way you move on the floor
0:02:22 > 0:02:25# Baby, I like it I-I-I-I like it
0:02:25 > 0:02:28# Baby I like it The way you move on the floor
0:02:28 > 0:02:33# Baby, I like it I-I-I-I like it... #
0:02:33 > 0:02:36Well, this is the more popular end of Woodhouse,
0:02:36 > 0:02:40and I'm excited to hear of a property that's up for auction.
0:02:40 > 0:02:43It's this end terrace over three floors and a basement.
0:02:43 > 0:02:48It was just £50,000. That's a very low guide price.
0:02:49 > 0:02:51I wonder what the reason is.
0:02:51 > 0:02:54# There must be a reason why I'm king of my castle
0:02:54 > 0:02:58# There must be a reason why I'm freeing my trapped soul
0:02:58 > 0:03:02# Must be a reason why I'm king of my castle
0:03:02 > 0:03:05# Must be a reason why I'm making examples of you... #
0:03:06 > 0:03:10There are no obvious structural problems from the outside,
0:03:10 > 0:03:13but guide prices like that are not without their reasons.
0:03:13 > 0:03:16Let's take a look inside to see what they are.
0:03:18 > 0:03:20Right.
0:03:21 > 0:03:24That'll be why, then.
0:03:24 > 0:03:27Severely fire-damaged.
0:03:27 > 0:03:29You're not kidding.
0:03:29 > 0:03:33Well, I can see so much when I'm wandering around,
0:03:33 > 0:03:36but the big question is how much damage has been done
0:03:36 > 0:03:39to the infrastructure of the house itself,
0:03:39 > 0:03:42and you can't tell that just by looking superficially.
0:03:42 > 0:03:44That needs a proper survey.
0:03:48 > 0:03:51Fortunately, no-one was injured in any fire here.
0:03:51 > 0:03:55It seems that the damage was caused by several small fires in each room,
0:03:55 > 0:04:01perhaps created for warmth by squatters, so the damage isn't as bad as it looks.
0:04:01 > 0:04:03So, look past the smokescreen,
0:04:03 > 0:04:05and the property actually has a lot to offer.
0:04:05 > 0:04:08The top floor offers some great views,
0:04:08 > 0:04:12and has space for a bathroom and two double bedrooms.
0:04:12 > 0:04:15On the first floor, there are another two decent sized rooms,
0:04:15 > 0:04:20with original fireplaces and space for what could be a bathroom.
0:04:21 > 0:04:24The ground floor also offers two good-sized bedrooms,
0:04:24 > 0:04:28and then there's the large basement with its three rooms.
0:04:28 > 0:04:30One of these used to be a kitchen,
0:04:30 > 0:04:33and the other is ideal for a living and dining room.
0:04:33 > 0:04:35But nothing is certain.
0:04:35 > 0:04:37As this property has been fire-damaged,
0:04:37 > 0:04:42the gas and electrics will need to be thoroughly checked by a professional,
0:04:42 > 0:04:45and don't forget that all-important structural survey.
0:04:45 > 0:04:48So let's assume that any professional report on this place
0:04:48 > 0:04:51comes back giving it the thumbs up.
0:04:51 > 0:04:52What could it actually be?
0:04:52 > 0:04:57Well, setting aside how it looks right now, this is a fantastic house, especially for this area.
0:04:57 > 0:05:00Because what you've got is lots of individual rooms
0:05:00 > 0:05:03which could be let, surprise, surprise, to students.
0:05:03 > 0:05:07But before you do that, you've got to take a lot of regulations into mind.
0:05:07 > 0:05:09HMO, house of multiple occupation.
0:05:09 > 0:05:12It's a licensable HMO because it's got four floors,
0:05:12 > 0:05:14and it's got the six rooms.
0:05:14 > 0:05:18So you're going to have to adhere to all sorts of regulations like fire regulations, ha ha!
0:05:18 > 0:05:21You're going to have to put in a certain number of bathrooms,
0:05:21 > 0:05:25a certain amount of kitchen facilities, sound insulation,
0:05:25 > 0:05:29fire alarms and things like that, so lots of work to be done.
0:05:29 > 0:05:32But in terms of profit, in terms of the space
0:05:32 > 0:05:34and in terms of everything else that this needs,
0:05:34 > 0:05:38I think it's got great potential.
0:05:38 > 0:05:39Yeah, really!
0:05:42 > 0:05:46So, a big house and a big renovation project to take on,
0:05:46 > 0:05:50but an enticingly low guide price of just £50,000.
0:05:50 > 0:05:53Let's hear what a local property expert thinks of it.
0:05:55 > 0:05:59The property is going to appeal to a range of buyers,
0:05:59 > 0:06:02particularly investors and parents buying for their son or daughter.
0:06:02 > 0:06:07Because of the close proximity to Leeds University, I think this is a very good investment.
0:06:07 > 0:06:11But how much would someone have to invest in it first?
0:06:11 > 0:06:15Depending on your contact with trades, I would suggest anything
0:06:15 > 0:06:21from £30-50,000 to improve it into a good quality accommodation.
0:06:21 > 0:06:24Once that money's spent and the work done,
0:06:24 > 0:06:27what could the financial returns be?
0:06:27 > 0:06:31Once it's completed, I'd be looking to place an asking price
0:06:31 > 0:06:34somewhere between £160,000 and £170,000.
0:06:34 > 0:06:36And rental?
0:06:36 > 0:06:43I would be looking at achieving around about £1,600 per calendar month to six tenants.
0:06:45 > 0:06:49Well, it's a property that clearly needs some attention.
0:06:49 > 0:06:52But if you can see through its current state,
0:06:52 > 0:06:55I think there's a fantastic moneymaking opportunity here.
0:06:55 > 0:06:59Good size, great location and a good guide price.
0:06:59 > 0:07:01Let's see who went for it when it went under the hammer.
0:07:05 > 0:07:07The vacant six-bedroom mid-terrace house
0:07:07 > 0:07:10in need of complete renovation.
0:07:10 > 0:07:12Start me off at £55,000.
0:07:12 > 0:07:16At £55,000, 56.
0:07:16 > 0:07:2057? He will, in the door, 57. 58.
0:07:20 > 0:07:22With bidding fierce and competitive,
0:07:22 > 0:07:25we rejoin as the auctioneer reached £95,000.
0:07:25 > 0:07:2995. And a half.
0:07:29 > 0:07:3596. And a half. 97. And a half.
0:07:35 > 0:07:3898. And a half?
0:07:38 > 0:07:41At 98. And a half anywhere else?
0:07:42 > 0:07:46All finished, then, at £98,000 I am selling.
0:07:46 > 0:07:49For the first time...second...
0:07:49 > 0:07:53third and final time at £98,000.
0:07:53 > 0:07:54All done, thank you.
0:07:54 > 0:07:59That successful £98,000 bid came from 23-year-old Sapphire.
0:07:59 > 0:08:02She's just finished her degree in marketing,
0:08:02 > 0:08:04but like many other members of her family,
0:08:04 > 0:08:08has her sights set on a career in property developing.
0:08:12 > 0:08:16I met her back at her new four-storey house to see
0:08:16 > 0:08:18what she's got planned for this hidden gem.
0:08:18 > 0:08:24- Sapphire, lovely to meet you. - Lovely to meet you.- Congratulations. Well, sort of!
0:08:24 > 0:08:27- Slight wear and tear. - A little bit of work to be done.
0:08:27 > 0:08:30Tell me why you wanted to buy this place.
0:08:30 > 0:08:34As a student investment, and we know the area.
0:08:34 > 0:08:38And it just seemed like a good house, good-sized rooms, things like that.
0:08:38 > 0:08:42- You have to see beyond the blackness.- Quite.
0:08:42 > 0:08:43So tell me a bit more about you.
0:08:43 > 0:08:45Well, I finished uni,
0:08:45 > 0:08:50and then I basically came and started managing some student houses,
0:08:50 > 0:08:55and as I say, some of those needed work, so I managed the projects of those,
0:08:55 > 0:08:59and then from there we've bought a few, and just kind of expanded.
0:08:59 > 0:09:03Sapphire's never done a project this big before, but it doesn't faze her.
0:09:03 > 0:09:06She plans to complete it in a mere nine weeks,
0:09:06 > 0:09:09and wants to put some sparkle back into the place.
0:09:09 > 0:09:11Then she'll rent out the six bedrooms
0:09:11 > 0:09:15on the ground floor, first and second floor to students,
0:09:15 > 0:09:17and create a shared living area in the basement.
0:09:17 > 0:09:20There's certainly space to do that.
0:09:20 > 0:09:24But you do need to speak to the local council before doing a basement conversion.
0:09:24 > 0:09:29You must also comply with building regulations if you change the layout in any way.
0:09:29 > 0:09:31And there's even more to think about
0:09:31 > 0:09:35when dealing with a property that's been fire-damaged.
0:09:35 > 0:09:39With fire-damaged properties, you have to be careful. You don't know if the structure is damaged.
0:09:39 > 0:09:44What do you know about the structure, and what have you done to check it's OK?
0:09:44 > 0:09:48Well, we are getting a structural engineer in just to check.
0:09:48 > 0:09:52You can see it's sound, but you know, with regards to which ceilings need to come down,
0:09:52 > 0:09:55because some are cracked, but they're still sound.
0:09:55 > 0:09:57But we just want to do a proper job,
0:09:57 > 0:10:00so we'll get someone in to get further advice on that.
0:10:00 > 0:10:04Fantastic. Going into six rooms and four floors
0:10:04 > 0:10:09- brings you into the territory of houses of multiple occupation.- Yes.
0:10:09 > 0:10:12What are you going to have to do to satisfy the requirements for that?
0:10:12 > 0:10:16I have filled in applications for those before and they've gone through.
0:10:16 > 0:10:20But obviously you've got to take into consideration your windows or the fire doors,
0:10:20 > 0:10:24um, there's some woodwork that will need fireproofing.
0:10:24 > 0:10:28So all of that we will take into account to comply with.
0:10:28 > 0:10:32- Right, but it will become a licensed HMO.- Yes, definitely.
0:10:32 > 0:10:35Who does the project - is it you, is it you in conjunction with people?
0:10:35 > 0:10:40Well, I will probably find a team of builders. And this time...
0:10:40 > 0:10:44I usually, if it's a smaller project than this, I will project manage it.
0:10:44 > 0:10:47But at this scale I want a team to come in
0:10:47 > 0:10:52and have a manager that can do it. I'll just keep an eye on things, but really...
0:10:52 > 0:10:54Willing to pay the price for that?
0:10:54 > 0:10:57Yeah, exactly. I don't want to be managing one electrician
0:10:57 > 0:11:02with a plasterer, this, that and the other. I'd like a team so they know each other, so work together.
0:11:02 > 0:11:06Talk me through the finances then - how much is it going to cost?
0:11:06 > 0:11:08We're still getting quotes in.
0:11:08 > 0:11:13Um, but we're looking, hopefully, to spend no more than 40,000.
0:11:13 > 0:11:17But that's start to finish, with furniture and decor and everything like that.
0:11:17 > 0:11:20- And that's employing a project manager as well?- Yes.- Great.
0:11:20 > 0:11:24- What about other family being involved? - I get good advice from,
0:11:24 > 0:11:27well, a lot of family - my mum, my uncle particularly.
0:11:27 > 0:11:31Um, I'm trying to get my younger brother to get a feel for things
0:11:31 > 0:11:36- and help out a bit. He'll kind of... He's only 15.- Oh, wow!
0:11:36 > 0:11:38# One for my sister
0:11:38 > 0:11:40# One for my brother... #
0:11:40 > 0:11:44And it's younger brother Max who's keen to follow in Sapphire's footsteps.
0:11:44 > 0:11:47He's also a joint name on the mortgage,
0:11:47 > 0:11:50so has more than a passing interest in it.
0:11:50 > 0:11:53- So Max, congratulations, you're part of this then?- Yes, I am.
0:11:53 > 0:11:58- What do you think about that? - Eh, I think it's a pretty cool thing, really. It's good experience.
0:11:58 > 0:12:02Um, my whole family does it, from my grandma to my sister now.
0:12:02 > 0:12:06- Your grandma?- Yeah. She was the one that sort of...
0:12:06 > 0:12:10..she owned lots of houses and then she gave it to my mum, who is her daughter obviously,
0:12:10 > 0:12:14and, like, my uncle, and they split the houses between them.
0:12:14 > 0:12:18- Now my mum's got our whole family into it.- How old's your granny now?
0:12:18 > 0:12:22- She must be in her 90s, I think. - Fantastic! So it's in your blood? - Yeah, it is.
0:12:22 > 0:12:27It's quite an ambitious project for your first project. How do you feel about that?
0:12:27 > 0:12:32- Um...- What did you think the first time you walk through the door? - This is crazy!
0:12:32 > 0:12:37- Congratulations. Good luck.- Thanks. - I look forward to seeing how you get on.- Should be interesting!
0:12:37 > 0:12:39# One for my sister
0:12:39 > 0:12:44# One for my brother, this one's for you
0:12:44 > 0:12:48# This one's for you. #
0:12:49 > 0:12:55Well, many 23-year-olds are more concerned with partying than property picking.
0:12:55 > 0:12:58And 15-year-olds playing computer games.
0:12:58 > 0:13:01But it seems the team of Sapphire and her brother
0:13:01 > 0:13:04are really going to get their teeth stuck into this project.
0:13:04 > 0:13:07It's an ambitious one, lots of work to be done
0:13:07 > 0:13:12and that £40,000 budget, it'll go like that.
0:13:12 > 0:13:16How will they get on? You can find out later in the show.
0:13:20 > 0:13:22I've travelled to Croydon in Surrey today,
0:13:22 > 0:13:25the birthplace of top model, Kate Moss.
0:13:25 > 0:13:31I'm hoping that the property I'm here to see has great proportions and great bone structure.
0:13:31 > 0:13:33Let's just hope it doesn't demand huge sums of money.
0:13:34 > 0:13:38# Girls on film
0:13:38 > 0:13:42# Girls on film
0:13:42 > 0:13:45# Girls on film... #
0:13:45 > 0:13:49I'm here to see a three-bedroomed mid-terrace house.
0:13:49 > 0:13:52It had a guide price of £130,000.
0:13:52 > 0:13:55The auction catalogue tells me this lot
0:13:55 > 0:13:57is a short distance from the University Hospital.
0:13:57 > 0:14:03That's interesting because it's flagging up the fact there's a strong rental demand in this area
0:14:03 > 0:14:06and that can only be a good thing.
0:14:06 > 0:14:10As for the house, from the outside, it doesn't look like it's an emergency case.
0:14:10 > 0:14:12I wouldn't say it's high risk.
0:14:12 > 0:14:15I hope the inside doesn't need intensive care.
0:14:15 > 0:14:21Oh! Well, Kate Moss may be a local girl but this certainly isn't model standards.
0:14:21 > 0:14:25In fact, it needs a good old slap of night cream, if you ask me.
0:14:25 > 0:14:30Look at the state of it, you've got a downstairs bathroom here and in this room...
0:14:30 > 0:14:36It's a good sized family lounge. You can see, oh my goodness, it needs ripping apart.
0:14:36 > 0:14:40The carpet needs to come up, the wallpaper needs to come off.
0:14:40 > 0:14:44The windows needs replacing... You need starting over.
0:14:44 > 0:14:48You've a fireplace here and you can see somebody's drawn all over it
0:14:48 > 0:14:52so you'll need some heavy duty cleaner to get all of that stuff off.
0:14:52 > 0:14:56A good space. You've got the kitchen leading off there.
0:14:56 > 0:15:00Again, not a bad area, you could get to work on that and really liven it up.
0:15:00 > 0:15:02You need to spend some money here.
0:15:02 > 0:15:06Overall, you need to take a good, long hard look at this property
0:15:06 > 0:15:09and go right back to the drawing board.
0:15:11 > 0:15:14And not just that, I think you'd have to go back to the bare brick as well.
0:15:14 > 0:15:17I imagine the plaster will need replacing
0:15:17 > 0:15:19and the kitchen, well, that's pretty tired.
0:15:19 > 0:15:22The bathroom, that's dead on its feet.
0:15:22 > 0:15:27This house needs someone to come in and wake it up with new fixtures and fittings
0:15:27 > 0:15:31and a skip-load of paint to enliven it.
0:15:33 > 0:15:36Even though this house is incredibly dated
0:15:36 > 0:15:40and it's in a right old state, what I do like is the fact you have
0:15:40 > 0:15:43little windows everywhere, letting in lots of light.
0:15:43 > 0:15:49Up here we have three bedrooms, two of a good size and this is the third.
0:15:49 > 0:15:52A bit strange because it's really, really small.
0:15:52 > 0:15:55You couldn't fit a single bed here, or here.
0:15:56 > 0:16:01Partition wall, you know what I'd be inclined to do, take this down,
0:16:01 > 0:16:05open the space up and just have one big impressive master bedroom.
0:16:07 > 0:16:11Imagine this as one big room. Double aspect and spacious.
0:16:11 > 0:16:15I know what I'd rather have and it really does seem like the best thing to do here.
0:16:15 > 0:16:21Otherwise, as things stand, this upstairs layout really is unacceptable.
0:16:21 > 0:16:24Then, you haven't seen the garden.
0:16:24 > 0:16:28# I beg your pardon
0:16:28 > 0:16:32# I never promised you a rose garden... #
0:16:32 > 0:16:36You'll have your work cut out clearing up this lot!
0:16:36 > 0:16:40Rubbish aside, it's a good size. Get out the secateurs and bow saw
0:16:40 > 0:16:44and this could be a fantastic bit of outside space.
0:16:47 > 0:16:54With its guide price of 130,000, has this place got what it takes to leave a mark on the market?
0:16:54 > 0:16:58We asked a local estate agent what he thought of it.
0:17:00 > 0:17:04This property needs full refurbishment. It needs a new bathroom, new kitchen.
0:17:04 > 0:17:09Well, probably the central heating will be need looking at.
0:17:09 > 0:17:13New windows, probably. Everything.
0:17:13 > 0:17:17Once the work's done, what sort of rental income could be achieved?
0:17:19 > 0:17:24This property would rent for around £850 to £900 per calendar month.
0:17:24 > 0:17:26And for resale?
0:17:26 > 0:17:30We would market this property at £170,000.
0:17:31 > 0:17:36There is a ceiling price on this road and the aim of the game here is not to exceed that.
0:17:36 > 0:17:41Therefore, the bathroom should stay downstairs because everything else in this property needs doing!
0:17:41 > 0:17:44Whoever takes this on may want to reconfigure the upstairs
0:17:44 > 0:17:47as bedroom three is teeny tiny.
0:17:47 > 0:17:51Let's see who's up for this challenge as we go to auction.
0:17:54 > 0:17:56Lot 80, where do we start?
0:17:56 > 0:18:00It looks a 150, at least, house to me.
0:18:00 > 0:18:08150 anywhere? 120, then? Do we go below 120? 120 on my right. 120.
0:18:08 > 0:18:13125? 125.
0:18:13 > 0:18:16130? 135.
0:18:16 > 0:18:18140, 141.
0:18:18 > 0:18:23142, 143. 144,
0:18:25 > 0:18:29145. 146?
0:18:29 > 0:18:32146. 147.
0:18:32 > 0:18:35147, 148?
0:18:36 > 0:18:41147 with you. 148? If not, 147.
0:18:41 > 0:18:44First-time... Second time...
0:18:44 > 0:18:48Third and last time, we all done? Sold, 147. Well done.
0:18:48 > 0:18:55It was Graham and Sue who got the lot with their successful bid of 147,000.
0:18:55 > 0:18:58Graham's a manager at facilities management company
0:18:58 > 0:19:01and his wife, Sue, is an office manager.
0:19:01 > 0:19:04If you think they look familiar, they appeared on the show in 2008
0:19:04 > 0:19:08when they bought and renovated their first auction property in Kent.
0:19:08 > 0:19:13I met them back at their latest Croydon purchase to catch up.
0:19:16 > 0:19:18Graham and Sue, we meet again!
0:19:18 > 0:19:23- We do.- Yes.- Three years on, you've bought another property. How's it been going?
0:19:23 > 0:19:26We haven't done anything since. This is our second property.
0:19:26 > 0:19:30Our son, Neil, took over the property
0:19:30 > 0:19:34and he is now the landlord and we have tenants in the existing property.
0:19:34 > 0:19:37Sue, what has inspired you to move on and get another one?
0:19:37 > 0:19:42Just loved doing it the first time and it doesn't seem possible it's three years,
0:19:42 > 0:19:46time has gone so quickly, but we decided this is the time we want to do another one.
0:19:46 > 0:19:49Rested enough, ready to do it again.
0:19:51 > 0:19:54The plan was to sell their previous renovation in Sittingbourne, Kent
0:19:54 > 0:19:58but the drop in the market forced them to reconsider
0:19:58 > 0:20:00and since then they've rented it out.
0:20:00 > 0:20:05# Get together and do it again #
0:20:08 > 0:20:13With this one, the couple feel it's the right time to step back into developing
0:20:13 > 0:20:17and they aim to sell it once they've done a good renovation.
0:20:17 > 0:20:20Want to bring it up to a nice good standard.
0:20:20 > 0:20:23Change all the windows... The kitchen and bathroom need
0:20:23 > 0:20:27a lot of attention and give it a new, modern feel to it.
0:20:27 > 0:20:32I've noticed there's three bedrooms upstairs and an incredibly small bedroom.
0:20:32 > 0:20:36- I'm guessing one of them has been partitioned off, am I right? - That's correct.
0:20:36 > 0:20:40What we're going to do there is, they're not really big enough for three bedrooms
0:20:40 > 0:20:42so we're going to put it back to two.
0:20:42 > 0:20:46What about the bathroom downstairs, do you think that will detract the value of this property?
0:20:46 > 0:20:52What we're going to do there, we're going to enlarge it by pinching the hall
0:20:52 > 0:20:57and making it longer so we can get a decent sized wash basin in there.
0:20:57 > 0:21:03We won't really lose the hallway because we can use the lounge as the throughway to the kitchen.
0:21:03 > 0:21:06- So you'll have to come in and come around and come through.- Yes.
0:21:06 > 0:21:09- You'll open up the bathroom and have more space.- That's right.
0:21:09 > 0:21:13- The bathroom is going to be in the middle of the house, isn't it?- Yes.
0:21:13 > 0:21:17We had looked about moving upstairs, but where the drains are, it's not really practical.
0:21:19 > 0:21:23With space at a premium upstairs, I reckon Graham and Sue's plan
0:21:23 > 0:21:26to expand the bathroom into the hall is fairly sound.
0:21:26 > 0:21:31They have a healthy timescale of four months for the job, with 10,000 to spend on the renovations
0:21:31 > 0:21:38but they also have a possible £3,000 for a conservatory which might be added as the work progresses.
0:21:41 > 0:21:45Are you guys going to be working on this every day, is this your main focus?
0:21:45 > 0:21:49We both work full-time so it's going to be evenings and weekends
0:21:49 > 0:21:53but we've got a big workforce in family and friends.
0:21:53 > 0:21:57And we live locally, whereas the previous property we had quite a distance to travel
0:21:57 > 0:21:59and that did make quite a big difference.
0:21:59 > 0:22:03We live just a few miles away, it'll make it easier for us
0:22:03 > 0:22:06to get here and do work in the evening, as well as the weekends.
0:22:06 > 0:22:08What's it like working closely with him?
0:22:08 > 0:22:12Oh, well, we have a few ups and downs but we manage it somehow.
0:22:12 > 0:22:16- He goes upstairs and I go downstairs.- Perfect!- Yes.
0:22:19 > 0:22:24But, when it comes to decision-making, I reckon they'll always meet in the middle.
0:22:24 > 0:22:28I'm wondering if selling the house is their final decision.
0:22:28 > 0:22:31Now, guys, I know there's a university hospital nearby.
0:22:31 > 0:22:37Is there any chance you might consider renting this out? Because the rentals are strong in the area.
0:22:37 > 0:22:43I mean, if we couldn't sell it at a good price I think that's the only time we would say,
0:22:43 > 0:22:45"Yes, OK, let's rent this one."
0:22:45 > 0:22:50- The reason for selling it on, is that to get the cash to reinvest into another property?- Yes.
0:22:50 > 0:22:55- Definitely, that's what we'd like to do.- Straightaway?- We're looking to go straight into another one.
0:22:55 > 0:23:01# Ain't no stopping us now We're on the move... #
0:23:01 > 0:23:05Well, for Graham and Sue it seems full steam ahead,
0:23:05 > 0:23:10not just for renovating this place but also forgetting their property developing future back on track.
0:23:12 > 0:23:18Will Graham and Sue do all this for just £10,000 in four months?
0:23:18 > 0:23:22And, will they spend a further £3,000 on a conservatory?
0:23:22 > 0:23:27It may give the house the wow factor but will it add anything to the end value?
0:23:27 > 0:23:30Personally, I don't think so.
0:23:30 > 0:23:33You can find out how they both get on later in the programme.
0:23:34 > 0:23:38Coming up, this community centre in Lincoln comes with restrictions.
0:23:38 > 0:23:43This cannot be used as a restaurant, hotel or anywhere selling intoxicating liquor.
0:23:44 > 0:23:50In Croydon, we discover Graham and Sue's secret to working in happy harmony.
0:23:50 > 0:23:54I get sent out in the garden, Graham stays in the house.
0:23:55 > 0:24:01But first, in Leeds, what does Max think of his sister's property developing talents?
0:24:01 > 0:24:04I'm really impressed and proud of her. It's amazing.
0:24:08 > 0:24:13Now we head to Leeds and student hotspot Woodhouse, to be precise.
0:24:13 > 0:24:18Here, property developer, Sapphire had purchased this four-storey, six bedroomed property
0:24:18 > 0:24:21at an auction for £98,000.
0:24:21 > 0:24:25It had been badly fire damaged so renovating it would certainly be a challenge.
0:24:25 > 0:24:28But not one that Sapphire was going to have to face alone.
0:24:30 > 0:24:35- What about family being involved? - I'm trying to get my younger brother to get a feel for things
0:24:35 > 0:24:40- and help out a bit and he'll... He's only 15.- Oh, wow!
0:24:40 > 0:24:45So, a family refurbishment and one that Sapphire wanted done in double quick time
0:24:45 > 0:24:50to have it ready to let out to students. She set herself a tight nine-week timescale
0:24:50 > 0:24:54and 11 weeks after we first met her we have returned to see
0:24:54 > 0:24:57if she's taken this place from shell to chic.
0:25:13 > 0:25:17Wow, given the state it was in less than three months ago,
0:25:17 > 0:25:22to have this place in such great shape, in such a short time, is pretty incredible.
0:25:22 > 0:25:27The top and first floors have two bedrooms, each with newly fitted bathrooms.
0:25:27 > 0:25:31The ground floor has a further two bedrooms.
0:25:31 > 0:25:37And, where the real revelation is is in the basement, where there is now a communal lounge
0:25:37 > 0:25:42and two rooms that have been turned into one large kitchen/diner.
0:25:42 > 0:25:49So, originally this was two rooms. They had the kitchen and the second half was a coal room.
0:25:49 > 0:25:52We've knocked it all through and we've made it a lot bigger
0:25:52 > 0:25:54so we've got room for a dining table, as well.
0:25:54 > 0:25:58We've got plenty of units for all the students' pots, pans and food.
0:25:58 > 0:26:00We've got all new facilities and a brand-new kitchen.
0:26:00 > 0:26:03This is absolutely ideal for student accommodation.
0:26:03 > 0:26:07Just remember, if you're thinking about doing a basement conversion,
0:26:07 > 0:26:12you must speak to the local council for advice on permissions or building regulations first.
0:26:12 > 0:26:17If you plan to knock down any walls to open up an area, get the experts in.
0:26:17 > 0:26:23You must be sure they're not supporting walls before unleashing your sledgehammer.
0:26:23 > 0:26:27And, there have been more impressive changes upstairs, too.
0:26:27 > 0:26:31This is the first floor bathroom, which we've completely redeveloped.
0:26:31 > 0:26:33This was actually a wardrobe at the back here.
0:26:33 > 0:26:37We've knocked through and created space for a bath with a shower over
0:26:37 > 0:26:41whilst maintaining space for the toilet and sink as well.
0:26:41 > 0:26:43So nothing becomes too cramped.
0:26:44 > 0:26:47Sapphire also had to apply for an HMO licence
0:26:47 > 0:26:51and comply with HMO regulations on points like fire safety.
0:26:52 > 0:26:55She managed to achieve all of this in just seven weeks,
0:26:55 > 0:26:59two weeks short of her original timescale.
0:27:00 > 0:27:03What about her budget?
0:27:03 > 0:27:07I've spent in total about 45,000.
0:27:07 > 0:27:12My original budget was approximately 40. We're not far off
0:27:12 > 0:27:17and I do know where the costs have gone. Things such as new gas supply, HMO licence,
0:27:17 > 0:27:21also, the cost of skips and we had some scaffolding up, things like that.
0:27:21 > 0:27:23It's not too bad.
0:27:24 > 0:27:28What has she learned from this, her biggest property to date?
0:27:28 > 0:27:34Doing this property has allowed me to make sure I feel confident starting a house from scratch
0:27:34 > 0:27:37without electricity, or anything, and hopefully
0:27:37 > 0:27:41I can apply those skills to other projects, which I'm keen to do.
0:27:41 > 0:27:45And it's not the only way her confidence has grown.
0:27:45 > 0:27:49Sapphire had considered getting a project manager on board.
0:27:49 > 0:27:52I was the sole project manager throughout
0:27:52 > 0:27:57but my main builder helped liaise with the electrician and the plumber who was separate from his work
0:27:57 > 0:28:01and kept everyone running on time and made sure everyone was ahead of each other.
0:28:01 > 0:28:04I came to the property every day to catch up with them,
0:28:04 > 0:28:07and we were always in contact and it went quite smoothly.
0:28:07 > 0:28:09# I work for my sister
0:28:09 > 0:28:11# I work for my sister... #
0:28:11 > 0:28:16Although she took charge, Sapphire's teenage brother Max also got stuck in.
0:28:17 > 0:28:20Throughout the project, I helped with various things
0:28:20 > 0:28:26like the colour scheme and design of the rooms, especially the main rooms like the kitchen and lounge.
0:28:26 > 0:28:33Also, I did some cleaning around the house when we first got it because it was pretty messy.
0:28:33 > 0:28:36And, I helped put some furniture together, as well.
0:28:37 > 0:28:41What does Max think of his sister's work on the property?
0:28:41 > 0:28:45I'm really impressed and proud of her. It's just amazing.
0:28:45 > 0:28:48It's definitely something I'd like to follow up in the future.
0:28:48 > 0:28:55Sapphire's spent a total of £143,000 here including the £45,000 renovation budget
0:28:55 > 0:28:58but has it been a good investment?
0:28:58 > 0:29:00Let's hear from two local estate agents.
0:29:00 > 0:29:03I think the property is superb.
0:29:03 > 0:29:07I think the owner's done a great job getting it done in the time she has.
0:29:07 > 0:29:10It was a big job from start, a complete fire damage property.
0:29:10 > 0:29:15Now she's produced quality, comfortable accommodation.
0:29:15 > 0:29:19I think the house has been done exactly how students would like it.
0:29:19 > 0:29:22It's the right layout. The bedrooms are in the right places.
0:29:22 > 0:29:26It's got two bathrooms, a good-sized kitchen. It's spot-on for that market.
0:29:27 > 0:29:33Not only did Sapphire get the work done quickly but she's already let out the six rooms.
0:29:33 > 0:29:35As she was a little late to hit the student intake,
0:29:35 > 0:29:40she's charging her tenants slightly less than she plans for the next academic year.
0:29:40 > 0:29:42What could she be getting?
0:29:42 > 0:29:46I think the rental value will be around £65 to £70 per week, per tenant.
0:29:46 > 0:29:52I would expect this property to let at six students at £65 per person per week.
0:29:52 > 0:29:58OK, well Sapphire's currently charging between £50 and £60 per room per week.
0:29:58 > 0:29:59What did she think?
0:29:59 > 0:30:05I'm hoping, when I market it next year, I'm going to be looking for 75 to 80.
0:30:05 > 0:30:10Based on my previous letting experience, I'm very confident that we can reach that.
0:30:10 > 0:30:14If we got 75 it would be a 16% return which, of course, I'm very happy with.
0:30:14 > 0:30:17That is an impressive return.
0:30:17 > 0:30:22However, if she wanted, Sapphire could consider selling the property, but at what price?
0:30:23 > 0:30:28I think the resale value would be around £190 - £195,000.
0:30:28 > 0:30:33As an empty property, I would place a figure in the region of £180,000.
0:30:33 > 0:30:38If, however, the owner of the property could achieve a full let on this property, to six students,
0:30:38 > 0:30:45I would place an asking price on this property somewhere in the region of £200 to £210,000.
0:30:45 > 0:30:49Bearing in mind Sapphire's total outlay of 143,000,
0:30:49 > 0:30:54that's a potential pre-tax profit of between 37 and 67,000,
0:30:54 > 0:30:59depending on whether it's sold as a full let or not. Is she tempted?
0:30:59 > 0:31:03What I think I might do, is let it out in January for the coming year and once it's let
0:31:03 > 0:31:07put it on the market and see if anyone likes to buy it. If not, we'll hold onto it.
0:31:07 > 0:31:10Good thinking.
0:31:19 > 0:31:25Just a few miles from the beautiful historic centre of Lincoln is Ermine West.
0:31:25 > 0:31:31This isn't so much Cathedral Quarter as 1950s local authority housing.
0:31:31 > 0:31:35However, the prices are good and the location is not bad either.
0:31:35 > 0:31:40So a large housing development with the convenience of local shops.
0:31:40 > 0:31:44There are plentiful transport links to the city and if you peer over the rooftops,
0:31:44 > 0:31:47you can even glimpse the Cathedral itself.
0:31:47 > 0:31:52Estates like this were very much built with the community in mind and, of course,
0:31:52 > 0:31:56local residents would need somewhere to have their coffee mornings, bring and buy sales
0:31:56 > 0:31:58and mother and toddler groups.
0:31:58 > 0:32:02Which is why community centres like this one were built.
0:32:02 > 0:32:04It's this one that was up for auction.
0:32:04 > 0:32:10A guide price of 80 to 90,000, 1,700 square feet, let's take a look inside.
0:32:10 > 0:32:14It certainly sits on a big plot as well,
0:32:14 > 0:32:18with substantial car parking at the back.
0:32:18 > 0:32:22Despite some signs of neglect, it doesn't seem to be in particularly bad nick.
0:32:22 > 0:32:24What have we got?
0:32:24 > 0:32:29Well, come through the door, you've got loos there and into the main hall.
0:32:29 > 0:32:33Great space. Look at the parquet floor.
0:32:33 > 0:32:37It's a bit scratched but that would be absolutely beautiful sorted out.
0:32:37 > 0:32:41It's a really nice sized room and pretty much as you might imagine.
0:32:41 > 0:32:46It's got a kitchen area there and then up onto the stage.
0:32:46 > 0:32:49It's all in pretty good condition, actually.
0:32:49 > 0:32:52You can't help but imagine this place
0:32:52 > 0:32:58when it was fully active, you know, trestle tables at the time of Coronation, celebrating.
0:32:58 > 0:33:02Maybe the local amateur dramatic society putting on a play up here
0:33:02 > 0:33:07or at Christmas, a nativity play with the kids from the local school, or even a panto.
0:33:07 > 0:33:09My mind is buzzing.
0:33:09 > 0:33:15Sadly, I think, in reality it might be the final curtain call for this place.
0:33:15 > 0:33:19I don't know who would have the money to take this place on, pay for the upkeep
0:33:19 > 0:33:24and maintain it for the community. I'm afraid we may have heard the last chords
0:33:24 > 0:33:29from this little piano and the tea urn's stewed its last cup.
0:33:29 > 0:33:34To put your hand in your pocket for this you would want more than loose change in return.
0:33:35 > 0:33:39Let me put my hard-nosed developer's hat on for a minute.
0:33:39 > 0:33:43Is there potential to make money out of this building?
0:33:43 > 0:33:45I guess, one obvious option is to knock it down.
0:33:45 > 0:33:48You'd have a very sizeable plot in a residential area.
0:33:48 > 0:33:52You'd have to apply for planning permission, but I reckon, in this kind of space
0:33:52 > 0:33:58you could build four or five very decent sized houses, which is probably what I'd go for.
0:33:58 > 0:34:03So, given today's build costs, with the state of the market, I think you could do quite well.
0:34:05 > 0:34:10This isn't a particularly high-value area but the guide price of £80 to £90,000
0:34:10 > 0:34:13is reasonable for a 0.2 acre site like this.
0:34:13 > 0:34:18With the market a bit tough, I'd advise against building a large number of small units
0:34:18 > 0:34:24and stick to decent sized houses. Use your head and there could be some money in it
0:34:24 > 0:34:29but my heart draws me back to the role this building plays in the community.
0:34:29 > 0:34:32Could there be any way to make money from it as it is?
0:34:32 > 0:34:36The space as it stands is pretty functional
0:34:36 > 0:34:39and could be put to a variety of uses, pretty much as it is.
0:34:39 > 0:34:42A playgroup maybe, a dance school or something.
0:34:42 > 0:34:46The only restrictions are imposed by the council who are selling it
0:34:46 > 0:34:50and there is a restrictive covenant saying this cannot be used as a restaurant, a takeaway,
0:34:50 > 0:34:54a hotel or anywhere selling intoxicating liquor.
0:34:54 > 0:34:57Quite right, too! There's a local community here to protect.
0:34:58 > 0:35:03Ruling out the food and drink option could mean the death knell for this building
0:35:03 > 0:35:05as whoever buys it will need to make money.
0:35:05 > 0:35:07I can't imagine many small businesses,
0:35:07 > 0:35:10such as playgroups, being able to afford it.
0:35:10 > 0:35:15Despite its solid structure, I think the time has come for it to bow out.
0:35:18 > 0:35:19Just to make sure,
0:35:19 > 0:35:23we asked a local estate agent along to see what he thought.
0:35:26 > 0:35:29Looking at this building, it appears to be in very good condition.
0:35:29 > 0:35:33It's purpose-built, it's got good car parking out the back.
0:35:33 > 0:35:37The nicest use for this building would be if a community group
0:35:37 > 0:35:43come in and want to buy it for a club, or a children's nursery
0:35:43 > 0:35:47or some use that makes the best of the existing building.
0:35:47 > 0:35:51As an alternative, we may see it demolished for housing and that would probably
0:35:51 > 0:35:54give the best financial return.
0:35:54 > 0:36:01I think you could probably get four houses on this plot. What sort of value could each gross?
0:36:01 > 0:36:04I would expect that a two bedroomed house is worth in the region of 80 or £90,000.
0:36:04 > 0:36:09If the lot was bought close to the guide price of 80 to 90,000,
0:36:09 > 0:36:13there's definitely money to be made and not just in resale.
0:36:13 > 0:36:18The rental market in Lincoln is strong. We are looking at £400-£500 a month
0:36:18 > 0:36:21for two and three bedroomed houses.
0:36:21 > 0:36:28It's a solid and functional building that would suit all sorts of institutions and groups
0:36:28 > 0:36:32and really could easily carry on its place in the community.
0:36:32 > 0:36:36However, it's also a potentially quite valuable building plot
0:36:36 > 0:36:40and if the guide price is anything to go by, there would be
0:36:40 > 0:36:44some interest in the auction room from developers. Let's find out what happened.
0:36:44 > 0:36:46Lot number 19.
0:36:46 > 0:36:49This property is a community hall
0:36:49 > 0:36:53and centre on the site of 0.2 of an acre.
0:36:53 > 0:36:55£60,000 and let's make a start.
0:36:55 > 0:36:58£60,000, 62, 64,
0:36:58 > 0:37:0366, 68, 70, 72, 74,
0:37:03 > 0:37:0775. At 76. At the back of the room, 77.
0:37:07 > 0:37:1078, 79, 80.
0:37:10 > 0:37:15At 81, 82, 83, 84, 85,
0:37:15 > 0:37:2086, 87, 88, 89, 90.
0:37:20 > 0:37:23At 91, 92, 93,
0:37:23 > 0:37:2794, 95, 96.
0:37:27 > 0:37:30Against you at the back at 96 seated. 97, 98.
0:37:30 > 0:37:36At 98, you'll have to have another go. 99, £100,000.
0:37:36 > 0:37:39Are we going again? At £100,000, once.
0:37:39 > 0:37:44Twice, the third and final time of asking at £100,000.
0:37:44 > 0:37:48Your lot, sir. Thank you.
0:37:48 > 0:37:51The successful bid of £100,000 plus an additional 5,000
0:37:51 > 0:37:55to cover the vendor's sale costs and fees came from Nigel.
0:37:55 > 0:37:59He's a chartered surveyor, but also dabbles in development.
0:37:59 > 0:38:03He bought this one with a friend who owns a construction company.
0:38:03 > 0:38:09But it was Nigel and his architect, Ian, I met at the old community hall to find out its fate.
0:38:09 > 0:38:12- Nice to meet you. You've got a community hall.- Excellent!
0:38:12 > 0:38:15Why did you want to buy it?
0:38:15 > 0:38:19In the current market, we thought the price that we paid for the land was good value for money
0:38:19 > 0:38:21and we saw it as an investment.
0:38:21 > 0:38:25- You say, the land, you bought it for the land?- Yes, we have.
0:38:25 > 0:38:29We don't intend to continue with it being a community centre, I have to say.
0:38:29 > 0:38:32We hope to develop it into residential housing.
0:38:32 > 0:38:35- You're not into amateur dramatics or...- Certainly not, no!
0:38:35 > 0:38:38It's never been my forte.
0:38:38 > 0:38:42- What kind of issues are involved in taking on a project like this? - Quite a lot.
0:38:42 > 0:38:47Without there being planning, our main concern is we get the right planning
0:38:47 > 0:38:49for the site and get approval for it.
0:38:49 > 0:38:51An overview of what you're going to do here?
0:38:51 > 0:38:54At the moment, subject to what the architect says, we think
0:38:54 > 0:39:00we can get six, 2/3-bed town houses on the property, stacked in a terrace,
0:39:00 > 0:39:03that will have gardens and on-site parking.
0:39:03 > 0:39:08Creating a terrace means Nigel really will be getting the most out of this plot.
0:39:08 > 0:39:14I went outside with Ian, the architect, to discuss the outline plans in more detail.
0:39:14 > 0:39:17So, Ian, it's your job to turn this, basically,
0:39:17 > 0:39:20car park into something imaginative.
0:39:20 > 0:39:21What have you done?
0:39:21 > 0:39:24What we have been looking at, Martin,
0:39:24 > 0:39:28is a terrace of essentially affordable homes that basically
0:39:28 > 0:39:35reflects the existing properties in terms of scale and size, to the west and to the east.
0:39:35 > 0:39:39It looks like they'd all have a reasonable amount of space, not huge, but they are terraces.
0:39:39 > 0:39:44Absolutely, one of the aspirations of affordable and eco-housing
0:39:44 > 0:39:49at the moment is to have some defensible space at the front of each door of each property.
0:39:49 > 0:39:54- Defensible?- Defensible space, it's really the aspect
0:39:54 > 0:39:58of a two to three-metre strip in front of the front door.
0:39:58 > 0:40:01It gives people a psychological well-being.
0:40:01 > 0:40:05That's one of the aspects of the design that I've put into it.
0:40:05 > 0:40:09It makes a lot of sense and, of course, it's not unusual to build houses
0:40:09 > 0:40:11with space at the front and back.
0:40:11 > 0:40:16What's different about the design of these is that they're eco-friendly.
0:40:16 > 0:40:20All the building materials are either natural or from a renewable source.
0:40:20 > 0:40:25Each has a high level of insulation to minimise heat loss.
0:40:25 > 0:40:30Water would be conserved too, possibly through rainwater harvesting
0:40:30 > 0:40:33and the fitted appliances would be energy efficient.
0:40:33 > 0:40:37All this should work in their favour where planning permission is concerned,
0:40:37 > 0:40:42and don't forget, this all hinges on that.
0:40:42 > 0:40:46- All in all, are you hopeful? - Very hopeful.
0:40:46 > 0:40:50The City Council are very keen for affordable
0:40:50 > 0:40:53and sustainable homes to be built.
0:40:53 > 0:40:57We would target the people wishing to buy these sort of properties,
0:40:57 > 0:41:04perhaps even people that live on this estate that are new families or newlyweds, that sort of thing.
0:41:04 > 0:41:08There would be a willingness for people who've lived in this area for a very long time,
0:41:08 > 0:41:10or second-generation to move into these homes.
0:41:10 > 0:41:13It's all very interesting and, of course,
0:41:13 > 0:41:18in that respect the development will be given back to the community.
0:41:18 > 0:41:21The eco-friendly elements would minimise the impact on the environment.
0:41:21 > 0:41:25What about the figures, are they as appealing?
0:41:25 > 0:41:30Any idea of how much it's going to cost and the kind of finances of this project?
0:41:30 > 0:41:34Yes, we do. I've got a build cost based on a programme of six terraced houses.
0:41:34 > 0:41:38We've got a build cost of about 420,000.
0:41:38 > 0:41:40What resale value do you think they'll have?
0:41:40 > 0:41:46We think based on current market value, that the total six of them will be 690,000.
0:41:46 > 0:41:49Right, so there's about 150 by the time you've taken off the costs.
0:41:49 > 0:41:52- That's right, yes.- What's the timescale for the project?
0:41:52 > 0:41:55We'll need to go for full planning permission,
0:41:55 > 0:41:58which in itself will take two or three months.
0:41:58 > 0:42:03Once we got full planning, we'll be able to commence construction work on site
0:42:03 > 0:42:06and we envisage that taking about six months.
0:42:06 > 0:42:10From here, probably by the time we've finished, probably a good year, I would say.
0:42:10 > 0:42:12- Good luck with it, anyway. - Thank you.
0:42:12 > 0:42:15- I look forward to seeing how you get on.- Thank you.
0:42:15 > 0:42:19So it looks like it is final curtain for the community centre.
0:42:19 > 0:42:22For Nigel, though, it could be a nice little earner
0:42:22 > 0:42:26and he is giving back to the community by building that affordable housing.
0:42:26 > 0:42:29But only if he gets the planning permission.
0:42:29 > 0:42:32You can find out how he gets on later in the show.
0:42:36 > 0:42:39Well, time is a healer but it can be an enemy
0:42:39 > 0:42:41if you're up against a deadline.
0:42:41 > 0:42:45- What has happened to those properties?- Time to find out.
0:42:45 > 0:42:51We're back in Croydon, Surrey, now, where property loving couple Graham and Sue
0:42:51 > 0:42:56purchased this three-bed wreck for 147,000 at an auction.
0:42:56 > 0:43:01It needed renovation but they weren't scared off by the challenge of fitting
0:43:01 > 0:43:03and refitting around their busy lives.
0:43:03 > 0:43:07Are you going to work on this every day? Will this be your main focus?
0:43:07 > 0:43:11We both work full-time, so it's going to be evening and weekends.
0:43:11 > 0:43:15We've got a big workforce in, family and friends.
0:43:15 > 0:43:19'Confident they could call on reinforcements
0:43:19 > 0:43:22'and get this place done and dusted within four months,
0:43:22 > 0:43:25'we're back six and a half months later to see how they fared.'
0:43:32 > 0:43:35Downstairs, they've made the bathroom bigger and better
0:43:35 > 0:43:39by extending into what was the hallway.
0:43:39 > 0:43:42It still needs finishing off, as does the kitchen,
0:43:42 > 0:43:47which has been ripped out, and on the way to a new, lovelier look.
0:43:47 > 0:43:50The living room has been entirely redecorated,
0:43:50 > 0:43:53and French doors added at the back,
0:43:53 > 0:43:56as there's still the possibility of putting on a conservatory.
0:43:56 > 0:44:00Personally, I like that it leads straight into the garden.
0:44:00 > 0:44:03Certainly not what it was like when I was there.
0:44:10 > 0:44:13When we purchased the property,
0:44:13 > 0:44:17I don't think we realised what the garden was, in its size.
0:44:17 > 0:44:20There was so much rubbish in the garden,
0:44:20 > 0:44:23that had been turned out from the house.
0:44:23 > 0:44:26We found parts of cars.
0:44:26 > 0:44:28So much stuff in the garden, on the garden.
0:44:28 > 0:44:31We didn't know there was grass and a path.
0:44:31 > 0:44:33Spent a lot of time clearing it,
0:44:33 > 0:44:37and were amazed at the size of the garden.
0:44:37 > 0:44:38We sowed the grass seed,
0:44:38 > 0:44:41and it's grown and looks amazing now, I think.
0:44:41 > 0:44:42It looks so different.
0:44:42 > 0:44:45Can't believe we've got the size of garden we have.
0:44:45 > 0:44:48We're very pleased with it, and very proud.
0:44:48 > 0:44:50My mum, who's a keen gardener,
0:44:50 > 0:44:53is also very proud we've managed to achieve this.
0:44:53 > 0:44:57They weren't kidding when they said their family would help out.
0:44:57 > 0:45:01Sue's mum may be 82, but she helped make this garden glorious.
0:45:04 > 0:45:06Upstairs, there were three bedrooms,
0:45:06 > 0:45:08but two were tiny!
0:45:08 > 0:45:11Would bigger be better?
0:45:11 > 0:45:15Originally, this was three bedrooms.
0:45:15 > 0:45:18Where I'm standing now was the lobby.
0:45:18 > 0:45:22This doorway, which you can't see, has now been boarded up.
0:45:22 > 0:45:25We've recreated this doorway, here.
0:45:25 > 0:45:29Then, moving into the large bedroom,
0:45:29 > 0:45:31there was a partition across here,
0:45:31 > 0:45:37which left a small, long bedroom, which was not really practical.
0:45:37 > 0:45:41Now we've turned this into a large master bedroom.
0:45:41 > 0:45:42We're really happy with it.
0:45:42 > 0:45:44And so they should be,
0:45:44 > 0:45:47given the graft that went into this gaff.
0:45:47 > 0:45:48It WAS hard going.
0:45:48 > 0:45:51It seems like recently each weekend we've been here.
0:45:51 > 0:45:54Sometimes I thought, "Are we ever going to finish,
0:45:54 > 0:45:58"and will it look like any decent work's been done here?"
0:45:58 > 0:46:01But now, very pleased with how it's turned out.
0:46:01 > 0:46:03They've done a refurb before,
0:46:03 > 0:46:06as well as renovating some of their own properties,
0:46:06 > 0:46:09so they have a well-established way of working together.
0:46:09 > 0:46:13I get sent out in the garden. Graham stays in the house.
0:46:13 > 0:46:15- For the whole day. - SHE LAUGHS
0:46:15 > 0:46:18- I think that works quite well, actually.- It does.
0:46:18 > 0:46:21Sue and Graham weren't able to start straightaway.
0:46:21 > 0:46:24But it's taken four months to get to this stage.
0:46:24 > 0:46:28They've come in UNDER their ten grand budget,
0:46:28 > 0:46:30as they spent just £7,500.
0:46:30 > 0:46:33Added to their purchase price of £147,000,
0:46:33 > 0:46:38that's a total outlay of £154,500.
0:46:41 > 0:46:45Time to see what two local estate agents think of it.
0:46:45 > 0:46:49The vendors have done a really good job. We can see in the garden,
0:46:49 > 0:46:50which is great.
0:46:50 > 0:46:53The house sits on a really large plot,
0:46:53 > 0:46:55and it's nice to see the space that's actually here.
0:46:55 > 0:46:58I think it's done really nicely, so far.
0:46:58 > 0:47:01Once the kitchen and bathroom are finished to that standard,
0:47:01 > 0:47:03it'll be a lovely house.
0:47:03 > 0:47:06But, will it see a lovely return?
0:47:06 > 0:47:09Remember, they've spent just under £155,000
0:47:09 > 0:47:12and want to sell it on.
0:47:12 > 0:47:14We could market this property
0:47:14 > 0:47:17at £199, 950.
0:47:17 > 0:47:22You could put this on the market for £185,000 to £190,000.
0:47:22 > 0:47:25- Wow!- That's good.- Really pleased with that. Very pleased.
0:47:25 > 0:47:28We are, actually. We thought it would be less than that.
0:47:28 > 0:47:31- Well pleased.- Worth all the effort.
0:47:31 > 0:47:34With their £154,500 outlay,
0:47:34 > 0:47:39the pre-tax profit here could be somewhere between £30,500
0:47:39 > 0:47:45and £45,450, less the usual selling expenses.
0:47:45 > 0:47:48If it doesn't sell, they would consider renting it.
0:47:48 > 0:47:52What sort of numbers are we talking for that?
0:47:52 > 0:47:55We would market this property for rental purposes
0:47:55 > 0:47:57at £950 per calendar month.
0:47:57 > 0:48:00I think you'd be able to rent this out for £900 to £950
0:48:00 > 0:48:02per calendar month.
0:48:02 > 0:48:04- It's very good as well.- VERY good.
0:48:04 > 0:48:08We hadn't thought too much about how much we would get,
0:48:08 > 0:48:11- but I would have thought less. - We're very pleased with that.
0:48:11 > 0:48:13- That's worth considering. - Definitely.
0:48:13 > 0:48:17That yield of around 7 to 7.5%
0:48:17 > 0:48:19could be just the ticket.
0:48:19 > 0:48:21The rental market is buoyant in this area,
0:48:21 > 0:48:24so it's a great fall-back if it proves hard to sell.
0:48:24 > 0:48:27What about going to another auction?
0:48:27 > 0:48:30- Yes, we'd go back to auction again. - Definitely.
0:48:30 > 0:48:33We enjoy it. We get catalogues every month,
0:48:33 > 0:48:36and we keep looking.
0:48:40 > 0:48:43Earlier, we were in Ermine West in Lincoln,
0:48:43 > 0:48:46where chartered surveyor, Nigel, purchased
0:48:46 > 0:48:50this disused community centre for £100,000 at an auction.
0:48:50 > 0:48:53'He and his business partner run a development firm,
0:48:53 > 0:48:55'alongside their full-time jobs,
0:48:55 > 0:48:58'and saw this place as a great opportunity.'
0:48:58 > 0:49:01The price we paid for the land was good value for money,
0:49:01 > 0:49:03and we saw it as an investment.
0:49:03 > 0:49:06You say, "the land". You bought it for the land?
0:49:06 > 0:49:10Yes. We don't intend to continue with it being a community centre.
0:49:10 > 0:49:13We hope to flatten it, and develop it into residential housing.
0:49:13 > 0:49:15So, you're not into amateur dramatics?
0:49:15 > 0:49:18Certainly not! It's never been my forte.
0:49:18 > 0:49:22'Nigel planned to build a terrace of six houses on the plot,
0:49:22 > 0:49:25'once the existing building had been demolished.'
0:49:25 > 0:49:29He expected to spend around £420,000,
0:49:29 > 0:49:31and do the work in six months.
0:49:31 > 0:49:34That was based on getting the required planning permission
0:49:34 > 0:49:37with minimal drama, within three months.
0:49:37 > 0:49:39But we're back here two years and four months
0:49:39 > 0:49:41after we met Nigel.
0:49:41 > 0:49:44And... Oh, dear!
0:49:44 > 0:49:48These are not the "before" shots, but the site as it was when we returned.
0:49:48 > 0:49:51A distinct lack of houses,
0:49:51 > 0:49:53and the community centre still standing.
0:49:53 > 0:49:57On the plus side, at least it's looking a touch sunnier.
0:49:57 > 0:50:02# Don't bring around a cloud To rain on my parade... #
0:50:02 > 0:50:03But what about Nigel?
0:50:03 > 0:50:07Did that planning permission rain on HIS parade?
0:50:07 > 0:50:10It's been a difficult process getting it through planning.
0:50:10 > 0:50:12It's taken a long time to get the right scheme for this.
0:50:12 > 0:50:15He's not wrong.
0:50:15 > 0:50:18Initially, he got outlined plans approved for six flats
0:50:18 > 0:50:20and four houses on the site,
0:50:20 > 0:50:22on condition it included social housing,
0:50:22 > 0:50:26working in conjunction with the local housing association.
0:50:28 > 0:50:31But, because of the economic downturn,
0:50:31 > 0:50:35he found it hard to get ANY housing association with the money to collaborate.
0:50:35 > 0:50:38So, it was back to the drawing board.
0:50:38 > 0:50:41We had to go back round the planning process,
0:50:41 > 0:50:43to develop the site for the open market.
0:50:43 > 0:50:48That took time, patience and energy to get that through the system.
0:50:48 > 0:50:50But we've done it, and we're happy with the result.
0:50:50 > 0:50:53Now he has that all-important planning permission
0:50:53 > 0:50:57for two pairs of two bedroom townhouses.
0:50:57 > 0:50:59And a block of six two bedroom apartments,
0:50:59 > 0:51:03and there's no stipulated tie-in to social housing.
0:51:04 > 0:51:09This is where the two bedroomed townhouses are going to go.
0:51:09 > 0:51:11At the front, facing the main road
0:51:11 > 0:51:13is the main development,
0:51:13 > 0:51:17which consists of two bedroomed townhouses on either side.
0:51:17 > 0:51:22Then, with six apartments on a three storey level in the middle.
0:51:22 > 0:51:24There will be off-street parking to the back, here,
0:51:24 > 0:51:28which will facilitate off-street parking for both the townhouses
0:51:28 > 0:51:30and the apartments.
0:51:30 > 0:51:33It sounds like Nigel and his business partner really ARE
0:51:33 > 0:51:36going to make the most of the space.
0:51:36 > 0:51:39When I first visited the centre,
0:51:39 > 0:51:42part of me had hoped someone would take it back to its former glory.
0:51:42 > 0:51:47We did have a potential buyer for the community centre as it is.
0:51:47 > 0:51:50They wanted to use the existing building,
0:51:50 > 0:51:53but unfortunately we couldn't make a deal with them,
0:51:53 > 0:51:56so it looks like it will have to be demolished.
0:51:56 > 0:52:00Before we do that, we will salvage some of the items from the building.
0:52:00 > 0:52:05The lovely parquet flooring, we will take up and probably use at home.
0:52:05 > 0:52:07There's some smashing Belfast sinks we'll use.
0:52:07 > 0:52:10Other than that, unfortunately it will have to be demolished.
0:52:10 > 0:52:15Despite shattering my dreams of getting to play a panto villain,
0:52:15 > 0:52:18I'm delighted to hear some features of the centre
0:52:18 > 0:52:20will live on elsewhere.
0:52:20 > 0:52:25The potential purchasers weren't the only ones with a funding dilemma.
0:52:25 > 0:52:28There were further delays for Nigel and his partner
0:52:28 > 0:52:31when they couldn't get funding from the bank.
0:52:31 > 0:52:35Though they have put the site, plus planning permission, on the market,
0:52:35 > 0:52:39they hope they'll be able to realise those plans themselves.
0:52:39 > 0:52:43We're quite relaxed. We realise how difficult it is to get funding now,
0:52:43 > 0:52:45so we're going to wait and see if the market improves,
0:52:45 > 0:52:47and get funding in the future.
0:52:53 > 0:52:56Fortunately, they can afford to wait.
0:52:56 > 0:52:59Property development is a sideline for Nigel
0:52:59 > 0:53:01and his business partner,
0:53:01 > 0:53:03so they're under no pressure to sell.
0:53:05 > 0:53:10After all the delays and effort in getting that all-important planning,
0:53:10 > 0:53:12it would be a shame if they couldn't see the project through.
0:53:12 > 0:53:16We think the development will sit nicely with the surrounding area.
0:53:16 > 0:53:20We see it as low cost affordable housing.
0:53:20 > 0:53:24It's a similar development to what's being built round the corner
0:53:24 > 0:53:25by a national developer.
0:53:25 > 0:53:28We're hopeful the scheme will sell well.
0:53:28 > 0:53:31Here's hoping. We asked two Lincoln estate agents to look at the site,
0:53:31 > 0:53:34and tell us what they thought about its potential.
0:53:36 > 0:53:40The units planned for the site are ideal.
0:53:40 > 0:53:43I think a builder will see that as a potential
0:53:43 > 0:53:49for sales within a reasonably short period after development.
0:53:49 > 0:53:52The proposed development is on a known council estate,
0:53:52 > 0:53:55so there would be a ceiling price for the proposed properties.
0:53:55 > 0:53:58But it would stand out in local competition, so should fare well.
0:53:58 > 0:54:03With that ceiling price in mind, let's talk numbers.
0:54:03 > 0:54:07Nigel and his business partner spent £100,000 at auction on the building,
0:54:07 > 0:54:10plus £5,000 to cover the vendor's costs.
0:54:10 > 0:54:13And around £10,000 on the work they've done so far.
0:54:13 > 0:54:17Add that to the estimated build costs of £420,000,
0:54:17 > 0:54:20and another £7,000 or so on demolishing and clearing up,
0:54:20 > 0:54:26makes a proposed total outlay of around £542,000.
0:54:26 > 0:54:28So, if the development goes ahead,
0:54:28 > 0:54:32what price could the proposed units reach?
0:54:32 > 0:54:37The units in question would achieve somewhere around £100,000 per unit.
0:54:37 > 0:54:42That's four townhouses, two bedroomed, at £100,000 each.
0:54:42 > 0:54:44And six two bedroomed flats,
0:54:44 > 0:54:46at between £90,000 to £100,000 per unit.
0:54:46 > 0:54:50I think the finished product of the small townhouses
0:54:50 > 0:54:55is likely to achieve something in the region of £90,000 to £100,000.
0:54:55 > 0:54:58The plan is to develop six apartments,
0:54:58 > 0:55:03which are likely to achieve in the range £70,000 to £80,000.
0:55:03 > 0:55:08The £70,000 we would say is low, and the £100,000 was high.
0:55:08 > 0:55:10We thought about £85,000 for the flats.
0:55:10 > 0:55:13That's a reasonable valuation for the townhouses.
0:55:13 > 0:55:16We thought around £105,000, so I'm quite happy with that.
0:55:16 > 0:55:21Let's tot those figures at the higher and lower ends up.
0:55:21 > 0:55:24The combined valuation for the four townhouses and six flats
0:55:24 > 0:55:27is an estimated £780,000 to £1 million.
0:55:27 > 0:55:31If, and it's a big if,
0:55:31 > 0:55:34all goes to plan, and to budget, and all units are sold,
0:55:34 > 0:55:41Nigel could make a gross profit of between £238,000 and £458,000,
0:55:41 > 0:55:43excluding selling expenses.
0:55:43 > 0:55:45For the moment, however,
0:55:45 > 0:55:48although not his preferred option,
0:55:48 > 0:55:50the site is up for sale as it is.
0:55:50 > 0:55:52What do the estate agents make of that?
0:55:52 > 0:55:56As the development stands, without line planning permission,
0:55:56 > 0:56:00I would expect it to be worth between £200,000 to £250,000.
0:56:00 > 0:56:06It's likely the price achieved will be £160,000 to £175,000.
0:56:06 > 0:56:10If we took a valuation between those two land valuations,
0:56:10 > 0:56:11at say £200,000,
0:56:11 > 0:56:16that would give us around a £90,000 profit on the sale of the land,
0:56:16 > 0:56:20which would be a good profit for the effort and time we put into it.
0:56:20 > 0:56:24It's been hard work, but that would be a nice reward.
0:56:24 > 0:56:28If we develop it through, we'd hope to realise a higher profit.
0:56:28 > 0:56:32# I'm going to take my time... #
0:56:32 > 0:56:34After two years of planning, graft and patience,
0:56:34 > 0:56:38has Nigel's enthusiasm for this place dwindled?
0:56:38 > 0:56:42We think it has excellent potential, and is an ideal location.
0:56:42 > 0:56:44We think Lincoln is desperate for this development,
0:56:44 > 0:56:48so we'll bide our time, and hopefully maximise the profit.
0:56:50 > 0:56:53That's it for now. We'll be back next time with more action
0:56:53 > 0:56:56from auction rooms around the country.
0:56:56 > 0:56:58Make sure you watch Homes Under The Hammer.
0:56:58 > 0:57:00- We'll see you then. - Goodbye.- Goodbye.
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd