0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:06Buying property can be a long, drawn-out process,
0:00:06 > 0:00:07but not when you buy at auction.
0:00:07 > 0:00:10And you get the keys to the property you want in just 28 days.
0:00:10 > 0:00:15Yes, it really can be that quick, buying your home under the hammer.
0:00:40 > 0:00:43Sometimes, buying at auction can be a bit of a gamble,
0:00:43 > 0:00:46but not if you do your research first.
0:00:46 > 0:00:49So are today's buyers on a winning streak?
0:00:49 > 0:00:51Here's what they put their money on.
0:00:53 > 0:00:56This Lancashire property has problems on every floor.
0:00:56 > 0:00:59If you were hoping that it gets better upstairs,
0:00:59 > 0:01:01you are going to be disappointed.
0:01:02 > 0:01:07There's a bungalow in Kent with small rooms that could stretch your finances.
0:01:09 > 0:01:12Look! I can touch the walls almost.
0:01:12 > 0:01:15And how to get more from this first floor London flat.
0:01:16 > 0:01:20You can't go out the front, you can't go out the side, you can't go down.
0:01:20 > 0:01:22Maybe you could go up.
0:01:23 > 0:01:26All of these properties went to auction.
0:01:26 > 0:01:29We'll find out who bought them
0:01:29 > 0:01:32and what they paid when they went under the hammer.
0:01:36 > 0:01:39For the first property that went under the hammer,
0:01:39 > 0:01:42I've come to Lancashire to the heart of the Pennines.
0:01:42 > 0:01:48This is the Rochdale Canal in beautiful Calderdale.
0:01:48 > 0:01:51I'm about a mile outside Todmorden
0:01:51 > 0:01:56and the property I am here to see is just round the corner.
0:01:56 > 0:02:00Nearby Todmorden was once an industrial mill town,
0:02:00 > 0:02:04but since the local mill ceased production in the late 1960s,
0:02:04 > 0:02:07it's become more residential.
0:02:07 > 0:02:12It's popular with commuters travelling to nearby Manchester, Leeds, Bradford and Huddersfield.
0:02:16 > 0:02:19This is the property I am here to see.
0:02:19 > 0:02:22It was described in the catalogue as an inner terrace,
0:02:22 > 0:02:26but basically, it's a section of a big Victorian house
0:02:26 > 0:02:29that was once owned by the local mill owner.
0:02:29 > 0:02:33The guide price was £70,000 plus. Let's take a look.
0:02:35 > 0:02:40The property was split into three smaller units in the 1960s.
0:02:40 > 0:02:43One unit makes up half of it
0:02:43 > 0:02:47while the second half is split into two other units.
0:02:47 > 0:02:53It's the front half with three floors on the corner of the property that I am here to see.
0:02:53 > 0:02:58Crikey! Well, good and bad news, I'm afraid.
0:02:58 > 0:03:00The good news is, look at the size of this room.
0:03:00 > 0:03:03The ceiling height especially. Fantastic!
0:03:03 > 0:03:05You've got this big bay window.
0:03:05 > 0:03:08The bad news though, is that it's in a right old state.
0:03:08 > 0:03:11We've got buckets collecting water,
0:03:11 > 0:03:14we've got bits of building materials.
0:03:14 > 0:03:19The project has been started and not actually completed, which always worries me a bit.
0:03:21 > 0:03:24In general though, I'm excited to see more.
0:03:26 > 0:03:29Although, I'll have to watch my step.
0:03:29 > 0:03:32There are floorboards missing everywhere and a real danger
0:03:32 > 0:03:35that I could fall right into the large cellar below.
0:03:35 > 0:03:37# Hey daddio
0:03:37 > 0:03:39# I don't want to go
0:03:39 > 0:03:41# Down to the basement. #
0:03:41 > 0:03:43Like a lot of the house, it's got great potential
0:03:43 > 0:03:48but will require more expertise than that of a keen weekend DIY'er I suspect.
0:03:48 > 0:03:53The access is through a trapdoor in the porch area.
0:03:54 > 0:03:58Next to the living room, there is another shock.
0:03:58 > 0:04:01Through to what I think was the kitchen.
0:04:01 > 0:04:05But all that's left is the sink.
0:04:07 > 0:04:10Piles of bricks, reclaimed doors.
0:04:10 > 0:04:13This is more like an architectural salvage yard.
0:04:14 > 0:04:17I wonder what's in store upstairs.
0:04:18 > 0:04:21Well, if you were hoping that it gets better upstairs,
0:04:21 > 0:04:23you are going to be disappointed.
0:04:23 > 0:04:26In some ways, it is actually worse.
0:04:26 > 0:04:29Originally, I imagine two bedrooms here,
0:04:29 > 0:04:34but it looks like someone's had a go at sticking a dormer up there.
0:04:34 > 0:04:38It is actually a massive space, but my guess is, it hasn't been done properly.
0:04:38 > 0:04:41So get some architects in here,
0:04:41 > 0:04:45take a look at what you might be able to do, plan it out
0:04:45 > 0:04:51and you could, theoretically, after a lot of work, have a really, really amazing house.
0:04:51 > 0:04:56I am beginning to see why the guide price was set at just £70,000 plus.
0:04:56 > 0:05:01The two bedrooms have no ceilings and there are holes in the floor.
0:05:01 > 0:05:05There is a bathroom but apart from the loo,
0:05:05 > 0:05:07the fittings have long since gone.
0:05:09 > 0:05:11Outside, there is another problem.
0:05:11 > 0:05:15The garden is not directly accessible from the property.
0:05:15 > 0:05:18You have to cross the shared drive to reach it.
0:05:18 > 0:05:21But you do have the bonus of lovely canal side views.
0:05:24 > 0:05:28# Where peaceful waters flow. #
0:05:29 > 0:05:32Time now to find out what a local estate agent thinks
0:05:32 > 0:05:34of this Victorian villa.
0:05:35 > 0:05:38It's had many years going to rack and ruin.
0:05:38 > 0:05:41It was bought by developers about three years ago
0:05:41 > 0:05:43and been badly done.
0:05:43 > 0:05:47So it's now in a dreadful state but there's lots of potential here.
0:05:47 > 0:05:49So what refurbishment is recommended here?
0:05:49 > 0:05:52I would start at the top and work down.
0:05:52 > 0:05:55I think we need to replace the dormers,
0:05:55 > 0:05:58put two extra bedrooms upstairs, maybe an ensuite,
0:05:58 > 0:06:01and put the kitchen down into the cellar.
0:06:01 > 0:06:07What could the value be if you did turn this into a three or four-bedroomed home?
0:06:07 > 0:06:10If it was converted into a four-bedroom residence,
0:06:10 > 0:06:12it would fetch somewhere in the region of £200,000.
0:06:12 > 0:06:16How much rental income could it generate?
0:06:18 > 0:06:22As a three-bedroom, I would say somewhere around £575.
0:06:22 > 0:06:27As a four-bedroom, somewhere around £650 per calendar month.
0:06:27 > 0:06:30Well, what you've got here, obviously,
0:06:30 > 0:06:35is a major renovation project and not one for the faint-hearted.
0:06:35 > 0:06:39But it's a good house with amazing potential and a lovely location.
0:06:39 > 0:06:44Let's find out who wasn't daunted by the tasks ahead
0:06:44 > 0:06:46when it went to auction.
0:06:46 > 0:06:51Lot 88, the vacant inner terrace property in need of renovation.
0:06:51 > 0:06:54We'll start the bidding at £45,000.
0:06:54 > 0:06:59Here to sell it. 45. Thank you, sir, at the back. 45. 46? 46.
0:06:59 > 0:07:0347. 48. 50,000.
0:07:03 > 0:07:0652. 54. 56.
0:07:07 > 0:07:1058. 60,000.
0:07:10 > 0:07:1562. 64. 66.
0:07:15 > 0:07:1768. 70,000.
0:07:17 > 0:07:2272. 74. 76.
0:07:22 > 0:07:2578. 80,000.
0:07:25 > 0:07:3182. 84. 86.
0:07:31 > 0:07:33Just too far.
0:07:33 > 0:07:35£86,000 then. Strong bidding.
0:07:35 > 0:07:3886,000. 87,000 anywhere else?
0:07:38 > 0:07:42All finished at £86,000. Then, I am selling.
0:07:42 > 0:07:48For the first time, second, third and final time at £86,000.
0:07:48 > 0:07:51Well done. Thank you.
0:07:51 > 0:07:54That final successful bid was made by Bradford-based Dan.
0:07:55 > 0:07:59He bought the Victorian villa along with his wife, Alison,
0:07:59 > 0:08:03to make into a family home for themselves and their two children.
0:08:04 > 0:08:07Dan works in marketing at the local council,
0:08:07 > 0:08:10which is also where Alison was contracts officer
0:08:10 > 0:08:12before she took maternity leave.
0:08:12 > 0:08:17I met the couple back at their new property to find out about their plans.
0:08:17 > 0:08:20Dan, Alison, lovely to meet you both. Congratulations.
0:08:20 > 0:08:23You're smirking. Why are you laughing?
0:08:23 > 0:08:28You've seen the property. It is going to be a lot of work.
0:08:28 > 0:08:31So why did you want to buy this place?
0:08:31 > 0:08:33We want to buy it for a family home.
0:08:33 > 0:08:37It's very important that it's a nice big family home for our two children.
0:08:37 > 0:08:39- How old are they? - Two and three months.
0:08:39 > 0:08:43- Chaos ensues!- We like a challenge. Two young kids and a house to re-do.
0:08:43 > 0:08:46- Why not?!- So this is going to be your main family home.
0:08:46 > 0:08:48Why this particular house?
0:08:48 > 0:08:52It's got a lot of potential. We can start from the beginning.
0:08:52 > 0:08:56As you can see, there's nothing here. Everything is gone.
0:08:56 > 0:09:01We can put our plans in place and say, this is how we want it to be. So it'll be truly our home.
0:09:01 > 0:09:04It's one we actually looked at two years ago when it was up for sale.
0:09:04 > 0:09:08We really liked it, really like the location, but at that point it was just too expensive to buy.
0:09:08 > 0:09:12We were just fortunate to stumble across it while it was up at auction.
0:09:12 > 0:09:17- How much was it when you first saw it?- £185,000.
0:09:17 > 0:09:20- Wow! So you basically got it for £100,000 less.- Yes.
0:09:20 > 0:09:23It was almost something that was meant to be.
0:09:23 > 0:09:25I don't know if it's the right way of putting it,
0:09:25 > 0:09:29but we did stumble across it a week before it went to auction for the second time.
0:09:29 > 0:09:32It had already been up for auction a month before that.
0:09:32 > 0:09:36It was just almost as though it's come back for us.
0:09:36 > 0:09:39# This is where we were meant to be
0:09:41 > 0:09:46# This is where we were meant to be. #
0:09:48 > 0:09:50Goodness, what a result!
0:09:50 > 0:09:53Two years ago, the house failed to sell at £185,000
0:09:53 > 0:09:57and just two months ago it went to auction guided at 100,000
0:09:57 > 0:09:59and still no-one bought it.
0:09:59 > 0:10:04Now, Dan and Alison have paid just 86 grand. Nice one!
0:10:06 > 0:10:08- You must be thrilled to bits.- Yes.
0:10:08 > 0:10:10Thrilled and scared in equal measure at the moment.
0:10:10 > 0:10:14It's a lot of work to undertake, especially with two small children.
0:10:14 > 0:10:16Tell me what you're going to do.
0:10:16 > 0:10:20Get the professionals in is a definite.
0:10:20 > 0:10:25We've never finished decorating our own house because we tried to do it ourselves.
0:10:25 > 0:10:27We know that's not the route to go for this.
0:10:27 > 0:10:32We've got builders and tradesmen coming over in the next two or three days to start quoting up for us.
0:10:32 > 0:10:35There's a dormer roof on the top which shouldn't be there
0:10:35 > 0:10:39but we've got the plans to convert that into two bedrooms
0:10:39 > 0:10:42so we'll have four bedrooms upstairs, an ensuite, family bathroom.
0:10:42 > 0:10:45Down on this level, we'll try and create an entrance to the house
0:10:45 > 0:10:48because it's currently lacking an entrance.
0:10:48 > 0:10:50It's very much the side of a Victorian villa.
0:10:50 > 0:10:53Into the basement we'll put a dining kitchen
0:10:53 > 0:10:55and open the front of that out so we've got access outside.
0:10:55 > 0:10:59How much money have you set aside to do the work?
0:10:59 > 0:11:02Between 60 and 80.
0:11:02 > 0:11:05OK. It's a healthy budget but there is a lot to do.
0:11:05 > 0:11:06There is, yes.
0:11:06 > 0:11:10You've obviously got a lot going on with your two young children.
0:11:10 > 0:11:15Why take the project like this on rather than buying somewhere that was sorted out?
0:11:15 > 0:11:19We couldn't afford to get something like this in the normal housing market.
0:11:19 > 0:11:22It's an opportunity that we can take on board
0:11:22 > 0:11:25without having to worry about a massive mortgage
0:11:25 > 0:11:28and we can do what we want to do with it.
0:11:28 > 0:11:31What's the timescale for sorting everything out?
0:11:31 > 0:11:33- Hopefully, about nine months. - That's fantastic.
0:11:33 > 0:11:37I am delighted for you and I wish you much success.
0:11:37 > 0:11:40- I can't wait to see how it turns out.- Thank you. Thank you.
0:11:40 > 0:11:44It does seem that it's fate that Dan and Alison have ended up with this property,
0:11:44 > 0:11:48but they've got a lot of challenges ahead.
0:11:48 > 0:11:52Young family, house that needs complete renovation.
0:11:52 > 0:11:56Still, they've got a good budget and the enthusiasm to do it.
0:11:56 > 0:12:00How will they get on transforming this place into a home?
0:12:00 > 0:12:02You can find out later in the show.
0:12:06 > 0:12:10For the next property that sold at auction, I've come to Longfield,
0:12:10 > 0:12:13a semi-rural location in Kent.
0:12:13 > 0:12:16I'm here to see a four-bedroom bungalow.
0:12:16 > 0:12:20It had a guide price of £220,000 to £230,000.
0:12:20 > 0:12:23Interestingly, before going to auction,
0:12:23 > 0:12:26it was marketed for 245 grand.
0:12:26 > 0:12:31So, money to be made? A bargain to be had? Potentially.
0:12:31 > 0:12:33Let's take a closer look.
0:12:33 > 0:12:38It takes a while to get up close and personal with this auction lot.
0:12:38 > 0:12:41The path leading to the bungalow just seems to go on and on.
0:12:43 > 0:12:45# On and on and on
0:12:45 > 0:12:48# Keep on rockin' baby 'Til the night is gone. #
0:12:48 > 0:12:52But I like the raised elevation it has and it looks in fair condition.
0:12:54 > 0:12:58That's quite a walk. You've got a long path, three steps here,
0:12:58 > 0:13:00before you've even got to the front door.
0:13:00 > 0:13:03So, a lovely, wide, welcoming hallway.
0:13:03 > 0:13:06It's really nice to walk into a property like this.
0:13:06 > 0:13:08As you can see, it's incredibly dated.
0:13:08 > 0:13:11All the work needs doing here.
0:13:11 > 0:13:15Carpets, wallpaper, polystyrene tiles up there.
0:13:15 > 0:13:19You've got a really nice, big lounge with pretty views out into the garden.
0:13:19 > 0:13:22A good space. You've got another room here.
0:13:22 > 0:13:27Possibly a bedroom. Poly tiles on the ceiling and look at this.
0:13:27 > 0:13:30Poly tiles on the walls.
0:13:30 > 0:13:34I know that this used to be used as insulation many, many moons ago,
0:13:34 > 0:13:37but that will all have to come off because that really is a fire hazard.
0:13:37 > 0:13:39But a good space.
0:13:39 > 0:13:41You've got a little cupboard here
0:13:41 > 0:13:45but it's not deep enough to warrant being there, I don't think,
0:13:45 > 0:13:47so I would probably knock that out.
0:13:47 > 0:13:52And right at the end, the kitchen. How disappointing.
0:13:52 > 0:13:55This is too small for the property.
0:13:55 > 0:13:58It is very narrow, lots of cupboards everywhere.
0:13:58 > 0:14:01What have we got through here? A bit of a serving hatch.
0:14:01 > 0:14:03Another room back there.
0:14:03 > 0:14:07I'm just hoping that there is enough room in this property to reconfigure
0:14:07 > 0:14:10because this kitchen is not working for me.
0:14:10 > 0:14:12# You're a waste of space. #
0:14:13 > 0:14:19This bungalow, that had an auction guide price of £220,000 to £230,000,
0:14:19 > 0:14:22has four bedrooms and two bathrooms.
0:14:22 > 0:14:27I reckon the layout needs to be changed to give more space to the kitchen.
0:14:27 > 0:14:29# You're a waste of space. #
0:14:29 > 0:14:36And if you go through to the lounge, you get to yet another room on the other side of the kitchen.
0:14:36 > 0:14:38Now, I don't really know what this room would be.
0:14:38 > 0:14:42Perhaps a second reception room. I know the kitchen is through here.
0:14:42 > 0:14:46Now, what you could do is take this wall out and open this space up.
0:14:46 > 0:14:48But if you look through there,
0:14:48 > 0:14:53you don't really have a fantastic view or a lovely big window.
0:14:53 > 0:14:55So it would be quite dark,
0:14:55 > 0:14:58although you do have a bit of light coming through here.
0:14:58 > 0:15:02So, you could potentially knock through here
0:15:02 > 0:15:06because this room, as you can see, is tiny.
0:15:06 > 0:15:09Look! I can touch the walls almost!
0:15:09 > 0:15:12Not a great room. You couldn't call this a bedroom.
0:15:12 > 0:15:13I suppose it could be an office.
0:15:13 > 0:15:18But if you were to take out this wall, you'd have a fantastic space,
0:15:18 > 0:15:21a really gorgeous little bay window there,
0:15:21 > 0:15:23so lots of light coming through.
0:15:23 > 0:15:26I really think that would be the best use of space.
0:15:28 > 0:15:31But of course, you'd need to get professional advice
0:15:31 > 0:15:33as they could both be supporting walls.
0:15:35 > 0:15:40Off the dining room, this bedroom has a whole wall of fitted wardrobes.
0:15:40 > 0:15:43There's just so much wasted space here.
0:15:43 > 0:15:45# You're a waste of space. #
0:15:45 > 0:15:47And it's next to one of the two bathrooms.
0:15:50 > 0:15:55Unfortunately, I've spotted something else that needs re-working.
0:15:55 > 0:16:00There's another way into the house but it's alongside this garage
0:16:00 > 0:16:04and, well, it's a bit of a squash and it's a bit of a squeeze.
0:16:04 > 0:16:08You've got to mind the drainpipes as you come along.
0:16:08 > 0:16:10Forget it if you've got loads of shopping bags!
0:16:10 > 0:16:13Now, that's the way in.
0:16:13 > 0:16:17What I would do is get rid of this old, dilapidated garage.
0:16:17 > 0:16:19That does not need to be there.
0:16:19 > 0:16:22Then, it'll free up all this lovely space.
0:16:22 > 0:16:24You can park your car right up to here,
0:16:24 > 0:16:27get all your shopping bags out and go in your side door.
0:16:27 > 0:16:29Lovely.
0:16:29 > 0:16:30# Goodbye
0:16:30 > 0:16:32# Oh, bye
0:16:32 > 0:16:34# Baby, bye. #
0:16:35 > 0:16:39There's plenty of land with the bungalow as it sits on a big plot,
0:16:39 > 0:16:43but just like the inside, it is not being used to its best potential
0:16:43 > 0:16:47and if you've got a car, that's a problem.
0:16:48 > 0:16:52Parking is a bit of an issue, I'm afraid.
0:16:52 > 0:16:54You can see these yellow lines.
0:16:54 > 0:16:57Not very inviting for you or your guests.
0:16:57 > 0:17:01So why not create more parking in your front garden just here?
0:17:01 > 0:17:04Friends and family will be much more inclined to pop round
0:17:04 > 0:17:08knowing they won't have any parking dramas when they turn up.
0:17:08 > 0:17:12Looking around, it's obviously a popular move
0:17:12 > 0:17:14and you can see just how well it works.
0:17:14 > 0:17:19What will a local estate agent make of this oddly laid out bungalow?
0:17:19 > 0:17:22We invited one along to hear his views.
0:17:22 > 0:17:24Unusual bungalow.
0:17:24 > 0:17:27This bedroom here we're in is way too small as a bedroom
0:17:27 > 0:17:30so I think it would sell far better as a three bed.
0:17:30 > 0:17:33Take one of the bathrooms out and have a better sized bathroom
0:17:33 > 0:17:36and utilise the accommodation in a much better way.
0:17:36 > 0:17:41Assuming the bungalow is renovated to a good standard, how much rent could it generate?
0:17:41 > 0:17:46At the moment, you'd look in the region of between £1,000 and £1,100 per calendar month.
0:17:46 > 0:17:49And what could be the potential resale value?
0:17:49 > 0:17:55With a good job done, you'd sell this in the region of between £335,000 to £340,000.
0:17:55 > 0:17:59I'm usually thinking about ways to create an extra bedroom
0:17:59 > 0:18:01but in this case, I would be happy to lose one.
0:18:01 > 0:18:05Reconfiguring this bungalow will really transform it,
0:18:05 > 0:18:08making it a much more marketable proposition
0:18:08 > 0:18:10for the resale and the rental market.
0:18:10 > 0:18:13It's going to require a lot of work and imagination though.
0:18:13 > 0:18:17Let's find out who fancied the challenge as we go to auction.
0:18:17 > 0:18:21Lot 12, we go to now. It's a detached bungalow for refurbishment
0:18:21 > 0:18:23in an excellent location.
0:18:23 > 0:18:26Can I see £200,000 to start me?
0:18:26 > 0:18:29A bid for 200? 200, I'm obliged.
0:18:29 > 0:18:31And 10 by the sign at the back. 210.
0:18:31 > 0:18:34220. 220. A fresh place. 220.
0:18:34 > 0:18:39And five. 225. 225. And 30 now.
0:18:39 > 0:18:45Are we all done? 230. And five. 235. 235.
0:18:45 > 0:18:48I will take two if you like because you were so close to buying it.
0:18:48 > 0:18:51If not, I'm going to sell to the hand in the middle on the right hand side.
0:18:51 > 0:18:55For the first time at 230. It's against you and the one at the back.
0:18:55 > 0:19:00Second time at 230,000. Third and final time. You're all done at 230.
0:19:00 > 0:19:03And it is C449. Thank you.
0:19:06 > 0:19:09That final successful bid of £230,000
0:19:09 > 0:19:12was made by Bill and Maureen.
0:19:12 > 0:19:14Bill is a semi-retired managing director
0:19:14 > 0:19:18of the sheet metal company that he's owned for the past 38 years.
0:19:18 > 0:19:22His partner, Maureen, has now retired
0:19:22 > 0:19:25after working for a magazine and then for social services.
0:19:27 > 0:19:31I met up with them back at the property to hear about their plans.
0:19:31 > 0:19:36Congratulations. Really good news that you got this property.
0:19:36 > 0:19:39You were both at the auction. What was it like for you both?
0:19:39 > 0:19:42For me, it was really nerve wracking.
0:19:42 > 0:19:44I've been to lots of auctions for machinery,
0:19:44 > 0:19:46but I found it really nerve wracking.
0:19:46 > 0:19:48- So what do you do? - I've got an engineering company.
0:19:48 > 0:19:52We make office furniture. Anything out of steel.
0:19:52 > 0:19:54What were you doing at a property auction?
0:19:54 > 0:19:58I have retired. My son is now running the business and I get bored stiff.
0:19:58 > 0:20:01I don't really like gardening,
0:20:01 > 0:20:04so for the last five years, I have bought the odd property.
0:20:04 > 0:20:07I've got six houses which I let out.
0:20:07 > 0:20:10I like drawing up the kitchen layouts and changing it ten times.
0:20:10 > 0:20:15I know exactly what you mean! That's exactly what I do. I love a floor plan. Give me a floor plan!
0:20:15 > 0:20:17Not at three o'clock in the morning though!
0:20:17 > 0:20:20He gets up and he's in the study, drawing.
0:20:20 > 0:20:24"Have you seen this suite", he says to me. "Have you seen this?"
0:20:24 > 0:20:27Let's hope the best laid plans here do actually come to something.
0:20:28 > 0:20:32I think there's so much you could do with this property.
0:20:32 > 0:20:35What are you guys going to do to bring it together?
0:20:35 > 0:20:37Have your late nights paid off with your floor plan?
0:20:37 > 0:20:40It's not terribly exciting, to be honest.
0:20:40 > 0:20:42All we're going to do is knock the wall down
0:20:42 > 0:20:44between the kitchen and the dining room.
0:20:44 > 0:20:50Make that into a kitchen diner. All the other rooms will stay the size they are.
0:20:50 > 0:20:54It's just going to end up as a three to four bed with one room being used as an office.
0:20:54 > 0:20:57My concern is that little room is so little.
0:20:57 > 0:21:01What about using that as part of the kitchen and really opening the space up?
0:21:01 > 0:21:04I did originally think of knocking that wall down
0:21:04 > 0:21:06but because it's a main wall, my builder friend said,
0:21:06 > 0:21:09"Do you really want to go to all that cost?"
0:21:09 > 0:21:12I've actually designed the kitchen in that room with that wall knocked down
0:21:12 > 0:21:15and using the bay window and putting the sink in there.
0:21:15 > 0:21:17I think that would be lovely.
0:21:17 > 0:21:21My first reaction when I saw the property was to open the whole space up.
0:21:21 > 0:21:25But you could do it bit by bit and see what it's like when you've taken the first wall out.
0:21:25 > 0:21:28Just see how big it is and see how it feels.
0:21:30 > 0:21:33Bill plans to refit both the bathrooms
0:21:33 > 0:21:35with a shower in the smaller of the two rooms.
0:21:35 > 0:21:38So is it all going to be down to him?
0:21:39 > 0:21:42So you are going to employ a team of builders to be on site.
0:21:42 > 0:21:45Not a team, no. A few friends who are in the building game.
0:21:45 > 0:21:48I've got plumbers, and a carpenter.
0:21:48 > 0:21:50How involved are you going to be?
0:21:50 > 0:21:53Is this something you're interested in as well?
0:21:53 > 0:21:55Yes, I am very interested in it.
0:21:55 > 0:21:57I think it's really great fun and I can't wait.
0:21:57 > 0:22:00- I bet he's pulling faces behind me! - He's laughing!
0:22:00 > 0:22:04- We've had arguments already. - Show me the nails.
0:22:04 > 0:22:07- They're ready for decorating. - I think not!
0:22:07 > 0:22:11So come on, how involved are you going to be with this?
0:22:11 > 0:22:14I think, once he knocks this wall down, then I can actually see.
0:22:14 > 0:22:17Really, it's going to be a cosmetic thing. We're not going to live in it.
0:22:17 > 0:22:21At the moment, we're still thinking about letting, renting or whatever.
0:22:21 > 0:22:25So once that wall is down and we open it up, we can see between the three.
0:22:25 > 0:22:28So how much have you got to spend on this?
0:22:28 > 0:22:31The truth is, it'll probably end up about 40 grand,
0:22:31 > 0:22:36even without doing a lot of things, because by the time we put all the new heating in,
0:22:36 > 0:22:42two new bathrooms, a nice kitchen, it's going to be about 40 grand, I reckon.
0:22:42 > 0:22:44Is there a time limit on this project?
0:22:44 > 0:22:48Because I actually want to do more of the work, there is no real rush.
0:22:48 > 0:22:50So I am talking probably about up to four months for it.
0:22:50 > 0:22:53Otherwise, I'll have to buy another one and start again.
0:22:53 > 0:22:57So you might as well take your time on the one you're doing, really.
0:22:57 > 0:23:00- Is that news to you, Maureen? - Not really.
0:23:00 > 0:23:02All I'm thinking about really is our holidays.
0:23:02 > 0:23:06I'm just making sure we still have our holiday week. Honestly!
0:23:06 > 0:23:09Good luck, guys. It's been fantastic meeting you.
0:23:09 > 0:23:11- Thank you very much. - Lovely to meet you.
0:23:15 > 0:23:20So Bill doesn't like gardening and he's a bit bored.
0:23:20 > 0:23:23Perfect excuse to take on a huge project.
0:23:23 > 0:23:26But what will he decide to do about the box room?
0:23:26 > 0:23:30And will he knock down the wall to create a larger kitchen or not?
0:23:30 > 0:23:35One thing's for sure, Maureen wants her holidays, so the pressure is on.
0:23:35 > 0:23:39You can find out how they get on later in the programme.
0:23:39 > 0:23:41Coming up, there's a pleasant surprise
0:23:41 > 0:23:44in this first floor London flat.
0:23:44 > 0:23:49Actually, for a one-bedroom flat, not a bad amount of space.
0:23:50 > 0:23:54We're going back to Kent, where it sounds as if it's been no holiday.
0:23:55 > 0:23:59Overall, I am really, really pleased with it. Bill has worked so hard.
0:24:01 > 0:24:05But first, we return to Lancashire where everything needed fixing.
0:24:05 > 0:24:09The house was literally falling apart. The side wall was coming off.
0:24:12 > 0:24:16Earlier in the programme, we were in Todmorden in Lancashire
0:24:16 > 0:24:20where Dan and his wife, Alison, bought part of this converted
0:24:20 > 0:24:24but derelict canal-side property for 86,000.
0:24:26 > 0:24:29The couple both work for the council
0:24:29 > 0:24:32and Alison was on maternity leave with their second baby.
0:24:33 > 0:24:38The property needed a total rebuild but that hadn't put them off.
0:24:39 > 0:24:42So why this particular house?
0:24:42 > 0:24:45It's got a lot of potential. We can start from the beginning.
0:24:45 > 0:24:49As you can see, there is nothing here. Everything is gone.
0:24:49 > 0:24:52We can put our plans in place and say, this is how we want it to be.
0:24:52 > 0:24:54So it'll be truly our home.
0:24:54 > 0:24:59It's now 13 months later and the place has been totally transformed.
0:25:01 > 0:25:04The lean-to that was on the side of the property
0:25:04 > 0:25:07has been replaced with a new extension.
0:25:08 > 0:25:11It makes a much better main entrance.
0:25:15 > 0:25:18Some steps now lead down to the former basement
0:25:18 > 0:25:23which has become a stunning kitchen diner with underfloor heating.
0:25:24 > 0:25:27They made a very unusual discovery.
0:25:27 > 0:25:30A well, which they've covered in glass and turned into the future.
0:25:32 > 0:25:34Nice!
0:25:35 > 0:25:38This room does look fantastic.
0:25:38 > 0:25:40This is our kitchen diner.
0:25:40 > 0:25:43This is very much the reason why we moved to the house.
0:25:43 > 0:25:47The original kitchen upstairs was far too small for what we were after.
0:25:47 > 0:25:49There's a lot of work down here.
0:25:49 > 0:25:52Height wise, we dug three of four feet out of the ground,
0:25:52 > 0:25:54damp proofed it, sealed it, tanked it.
0:25:54 > 0:25:57New stairway in from the original stairway that was on the side.
0:25:57 > 0:26:01New external stairway straight outside which is really nice.
0:26:01 > 0:26:05The one thing I really like here is having a pantry, having everything out.
0:26:05 > 0:26:07It reminds me of old family houses.
0:26:07 > 0:26:09One of our key features here was the well.
0:26:09 > 0:26:14It took a lot of cleaning out. We've put a nice light in there. It's one of our key features in the kitchen.
0:26:14 > 0:26:18Up the new staircase from the basement to the first floor,
0:26:18 > 0:26:23where the former kitchen has been converted to a room that all the family can use.
0:26:25 > 0:26:29You reach it by turning right through the front door.
0:26:29 > 0:26:32This is our snug. It's our lovely family room.
0:26:32 > 0:26:35We've moved our stairs and put them over here
0:26:35 > 0:26:39and eventually we'll have some iron balustrades
0:26:39 > 0:26:41to make it look a lot more grand.
0:26:41 > 0:26:44We've got our fireplace as well which is all lovely and reclaimed
0:26:44 > 0:26:48and eventually will work and be a lovely fireplace.
0:26:48 > 0:26:52Eventually, this room will be somewhere for the children to play
0:26:52 > 0:26:55and somewhere we can shut the door and watch a film
0:26:55 > 0:26:57and the kids can do their homework as well.
0:26:57 > 0:27:00So hopefully, it'll turn into a good room.
0:27:00 > 0:27:04From the snug, you can walk through to the bay fronted living room.
0:27:08 > 0:27:12Like most of the property, it's made use of lots of reclaimed materials.
0:27:15 > 0:27:20A year ago, the higher you went up this property the worse it got.
0:27:22 > 0:27:26Now, the first floor has some clearly defined rooms.
0:27:28 > 0:27:32There's a new family bathroom at the top of the stairs.
0:27:33 > 0:27:36Plus two bedrooms for the children.
0:27:38 > 0:27:42It's taken a year with lots of structural work done,
0:27:42 > 0:27:45so just what did need to be changed?
0:27:45 > 0:27:49The first big thing really was the roof. The house was literally falling apart.
0:27:49 > 0:27:54The side wall was coming off and that's because the roof structure was so poor.
0:27:54 > 0:27:56So the roof was redone.
0:27:57 > 0:28:01With new dormer windows and a complete rebuild,
0:28:01 > 0:28:04the attic now houses the master bedroom.
0:28:07 > 0:28:11There's also a separate shower room
0:28:11 > 0:28:14and a spare bedroom which Alison is currently using as a sewing room.
0:28:18 > 0:28:21With a full-time job in marketing at the council,
0:28:21 > 0:28:26Dan only had weekends to work on the house, but he's been there every weekend for the last year.
0:28:26 > 0:28:31For the first three months, he was demolishing the inside before the builders came on board.
0:28:31 > 0:28:35As work progressed, friends and family helped out
0:28:35 > 0:28:38with the tiling, painting and rewiring.
0:28:38 > 0:28:40We always knew the budget was going to be tight.
0:28:40 > 0:28:44We wanted to redevelop the house in the way the house was originally.
0:28:44 > 0:28:48So a lot of that meant getting reclaimed furniture,
0:28:48 > 0:28:52including reclaimed floorboards made from old beams from the local mill.
0:28:52 > 0:28:56Lots of salvage yards, which has been great fun for the kids. They've come with us!
0:28:56 > 0:29:03They sourced reclaimed fireplaces and lots of other materials from auctions.
0:29:03 > 0:29:05And Dan discovered this original ceiling rose.
0:29:07 > 0:29:10They paid £86,000 for the property at auction,
0:29:10 > 0:29:12so how much has the refurbishment cost?
0:29:12 > 0:29:15Did they manage to stick to their budget?
0:29:17 > 0:29:19Our original budget was around 80,000.
0:29:19 > 0:29:23- I would say we've spent about 100,000 in reality.- Yes.
0:29:23 > 0:29:26I must admit, our original budget, we knew it wasn't a realistic budget
0:29:26 > 0:29:28but that was the maximum we wanted to spend.
0:29:28 > 0:29:31We knew we'd probably end up spending more like 100.
0:29:31 > 0:29:35So they've spent more on the renovation
0:29:35 > 0:29:38than they did on the £86,000 purchase price.
0:29:38 > 0:29:40Has it been money well spent?
0:29:41 > 0:29:44Let's see what two local estate agents think
0:29:44 > 0:29:46of the finished product.
0:29:46 > 0:29:49It's a lovely property. They've done a lot with it.
0:29:49 > 0:29:51They've kept the character of the house.
0:29:51 > 0:29:54They've kept the integrity and put some modern touches in.
0:29:54 > 0:29:57The house is sympathetically restored.
0:29:57 > 0:30:00I think the floor layout for family is absolutely super.
0:30:00 > 0:30:03There are large bedrooms. It's a very nice home.
0:30:03 > 0:30:08I like the attention to detail and the lovely wide floorboards and the woodwork on the eaves outside.
0:30:08 > 0:30:11I love the big bay windows in the sitting room and down in the kitchen.
0:30:11 > 0:30:17The estate agents are confident that the house could be let for £750 per calendar month,
0:30:17 > 0:30:22but Alison and Dan have no intention of leaving their dream family home.
0:30:22 > 0:30:27They spent 100 grand doing it up on top of the £86,000 they paid at auction,
0:30:27 > 0:30:32so is it now worth more than their total outlay of £186,000?
0:30:33 > 0:30:36I would sell this house for £275,000.
0:30:36 > 0:30:38On re-sale, I would imagine that this property
0:30:38 > 0:30:42should be able to achieve about £270,000.
0:30:42 > 0:30:48That's a potential gross profit of between £84,000 and £89,000,
0:30:48 > 0:30:49less the usual selling expenses.
0:30:49 > 0:30:52Is that what they were expecting?
0:30:52 > 0:30:55I'd say that was probably about what we expected.
0:30:55 > 0:30:57Probably about what we were thinking,
0:30:57 > 0:31:02bearing in mind what the properties around this have sold for over the last three or four years.
0:31:06 > 0:31:10So, after a very busy year, do they feel that the project has been successful?
0:31:12 > 0:31:14Yes, definitely. It's been a long, hard year.
0:31:14 > 0:31:18I'm not quite sure what I'll be doing next year, now that I've got this out of the way.
0:31:18 > 0:31:23- I'm sure I'll find something to do at the weekend!- We've got two young kids! Plenty of things!
0:31:26 > 0:31:29For the next property that went under the hammer,
0:31:29 > 0:31:32we're in the West London suburb of Hammersmith,
0:31:32 > 0:31:35just about 15 minutes from central London on the tube.
0:31:35 > 0:31:39So just a short walk from Hammersmith underground
0:31:39 > 0:31:44and just round the corner from Charing Cross Hospital,
0:31:44 > 0:31:46I'm liking this place already,
0:31:46 > 0:31:49one-bedroom flat, guide price £225,000.
0:31:49 > 0:31:52From the outside, things get off to a great start.
0:31:52 > 0:31:55The flat I'm here to see is on the first floor.
0:31:55 > 0:31:58The original sash windows are in place.
0:31:58 > 0:32:01The brickwork is exposed and looks in good condition
0:32:01 > 0:32:04and there are some ornate mouldings as well. Very attractive.
0:32:04 > 0:32:07Through the communal front door,
0:32:07 > 0:32:09it's upstairs to the first-floor flat.
0:32:11 > 0:32:13So, what layout is in store?
0:32:13 > 0:32:17Well, fairly standard for this kind of thing. Kitchen there.
0:32:17 > 0:32:21Onwards into a half decent sized bathroom
0:32:21 > 0:32:23and up on to a second landing area.
0:32:23 > 0:32:26Storage cupboard. You might want to get rid of that
0:32:26 > 0:32:30to give more of a feeling of space on the landing here.
0:32:30 > 0:32:33Your bedroom there. It's not a bad size.
0:32:33 > 0:32:36And then through into your main living area.
0:32:36 > 0:32:40It's not huge but it really does benefit from having this bay window.
0:32:40 > 0:32:45Actually, for a one-bedroom flat, not a bad amount of space.
0:32:45 > 0:32:48Some lovely features remain here
0:32:48 > 0:32:50and the floorboards could sand up really well.
0:32:51 > 0:32:56But the kitchen needs new units and the bathroom has only got a loo,
0:32:56 > 0:32:59so a new suite is needed there straightaway.
0:32:59 > 0:33:02But the flat looks to be in pretty good overall condition.
0:33:03 > 0:33:06So, apart from doing a simple renovation on this place,
0:33:06 > 0:33:10what are your options for potentially making a bit more money?
0:33:10 > 0:33:14Well, you can't go out the front, you can't go out the side, you cant go down.
0:33:14 > 0:33:16Maybe you could go up.
0:33:16 > 0:33:24Yes. A loft conversion could be a way of enhancing the property.
0:33:24 > 0:33:28Now, it's going to cost you, but I think there's scope to go up
0:33:28 > 0:33:31and potentially create another room up there, maybe a bedroom,
0:33:31 > 0:33:34or something else, maybe even have access to the roof for some views.
0:33:34 > 0:33:37It's worth investigating but you've got to look at the cost.
0:33:37 > 0:33:40How much is it going to cost for you to do it?
0:33:40 > 0:33:45How much is it going to add to the value of the property? Then, you make an informed decision.
0:33:45 > 0:33:51The flat went to auction guided at £225,000, but it's leasehold.
0:33:51 > 0:33:54So the new owner will have to contact the freeholder,
0:33:54 > 0:33:57in this case, the local council, who are selling the property,
0:33:57 > 0:34:01to ask if they'd be willing to sell the loft space and negotiate a price.
0:34:01 > 0:34:03Then there's another fly in the ointment.
0:34:03 > 0:34:07A condition of the sale is that whoever bought the flat
0:34:07 > 0:34:10can't have it as their principal place of residence.
0:34:10 > 0:34:13Basically, the buyer can't live here full-time.
0:34:13 > 0:34:15So what are your options?
0:34:15 > 0:34:18You could use it as your pied-de-terre in London
0:34:18 > 0:34:21and have a big country house perhaps or more realistically,
0:34:21 > 0:34:25either buy it to rent out or do it up and then sell it on.
0:34:25 > 0:34:29For legal reasons, that residency condition ensures that the money
0:34:29 > 0:34:34made from the sale goes to the local council and not central government.
0:34:34 > 0:34:37So the clause is nullified once the property is sold on in the future.
0:34:37 > 0:34:41To find out a bit more about the options here,
0:34:41 > 0:34:45we invited a local estate agent to come and have a look around.
0:34:45 > 0:34:48What does he see as the selling points of this flat?
0:34:49 > 0:34:51It obviously needs a lot of work.
0:34:51 > 0:34:54But it's got the space that people are looking for
0:34:54 > 0:34:55and that's the main thing.
0:34:55 > 0:34:58Light in all the rooms and the option of going up into the loft,
0:34:58 > 0:35:03which is going to add the most value of all to this flat.
0:35:04 > 0:35:07Providing the new owner can get the loft space,
0:35:07 > 0:35:10because the flat was sold without the loft included.
0:35:11 > 0:35:15So after a full refurbishment, what rental income could it achieve
0:35:15 > 0:35:19and what would be the effect of adding a second bedroom up in the loft?
0:35:20 > 0:35:25As a one-bedroom flat, I would rent this out for £1,300 per calendar month.
0:35:25 > 0:35:31As a two-bedroom flat, I could rent it possibly for as much as £1,550 per calendar month.
0:35:31 > 0:35:35What resale value could the flat achieve?
0:35:35 > 0:35:39As a one-bedroom flat, I would put this back on the market at £335,000.
0:35:39 > 0:35:42And if the new owner was able to purchase the loft
0:35:42 > 0:35:46and create extra accommodation up there, then how much could be worth?
0:35:46 > 0:35:48I wouldn't want to go above £400,000,
0:35:48 > 0:35:52so I would suggest marketing it at £399,000,
0:35:52 > 0:35:57probably to achieve a figure in the region of £385,000.
0:35:58 > 0:36:01Well this is a very desirable property
0:36:01 > 0:36:03in a well located area.
0:36:03 > 0:36:06Money to be made? Yes, if you just did it up, but the real bucks
0:36:06 > 0:36:08are if you look at extending.
0:36:08 > 0:36:11Let's see who fancied the opportunity when it went under the hammer.
0:36:11 > 0:36:14Right, move on to Lot 4.
0:36:14 > 0:36:17Well located first floor flat, Hammersmith W6.
0:36:17 > 0:36:20Who would like to start off on this?
0:36:20 > 0:36:23Anyone shout out a bid? Put your fingers up.
0:36:23 > 0:36:25Good bid, 250.
0:36:25 > 0:36:28255 anywhere?
0:36:28 > 0:36:31250, 255 anywhere?
0:36:31 > 0:36:34251 anywhere?
0:36:34 > 0:36:36251,
0:36:36 > 0:36:38252...
0:36:38 > 0:36:40well done... 253...
0:36:40 > 0:36:43254. Had to work on that!
0:36:43 > 0:36:46255.
0:36:46 > 0:36:48With you, sir, 255.
0:36:48 > 0:36:51254 at the back,
0:36:51 > 0:36:52255 elsewhere?
0:36:52 > 0:36:55If not, 254, first time,
0:36:55 > 0:36:59second time, third and last time if you're all done...
0:36:59 > 0:37:01sold - 254. Well done.
0:37:01 > 0:37:04That successful bid of £254,000
0:37:04 > 0:37:06was made by Kenham,
0:37:06 > 0:37:10who was at the auction with his business partner, Mary.
0:37:10 > 0:37:12Kenham's a chartered surveyor
0:37:12 > 0:37:16who worked at a large commercial property company for 10 years.
0:37:16 > 0:37:21He decided to leave to run his own photographic business
0:37:21 > 0:37:24alongside the property developing business he set up with Mary.
0:37:24 > 0:37:29She is also involved in many other investment and property ventures.
0:37:29 > 0:37:33I arranged to meet the duo back at the flat to find out their plans.
0:37:33 > 0:37:37- Mary, Kenham, lovely to meet you both. Congratulations. - Thank you.
0:37:37 > 0:37:39Tell me why you wanted to buy this flat.
0:37:39 > 0:37:42Well, we'd been looking at the Savills auctions for various
0:37:42 > 0:37:44flats in Hammersmith and Fulham.
0:37:44 > 0:37:48In that particular auction there were four lots we were going to bid on
0:37:48 > 0:37:51and this was number four and we managed to buy it.
0:37:51 > 0:37:53I think there's huge opportunity.
0:37:53 > 0:37:56We're going to do a loft conversion.
0:37:56 > 0:37:57Oh wow!
0:37:57 > 0:38:00And put in a kitchen up the top there, staircase running up,
0:38:00 > 0:38:02with a roof terrace at the back.
0:38:02 > 0:38:05But there's one thing they have to do before they can do
0:38:05 > 0:38:09any of that work and that's convince the freeholder to sell the loft space.
0:38:09 > 0:38:14And as Kenham explains it's the local authority they're going
0:38:14 > 0:38:15to have to negotiate with.
0:38:15 > 0:38:17It's a council freehold property.
0:38:17 > 0:38:22We've got 125 years of lease new,
0:38:22 > 0:38:24but we have to buy the loft demise
0:38:24 > 0:38:26which we're currently in the process of doing.
0:38:26 > 0:38:31Right. So how much is it looking like it's going to cost to get that?
0:38:31 > 0:38:34We've been told that lofts in the borough
0:38:34 > 0:38:37are anything between 10 and 50,000.
0:38:37 > 0:38:41- Whoa!- So we're obviously hoping for ten.
0:38:41 > 0:38:45Clearly, whoever's selling knows that they add a value onto the property.
0:38:45 > 0:38:47Yeah. Exactly.
0:38:47 > 0:38:51So their way of doing it - they value it as it is now
0:38:51 > 0:38:53and then look at the value post-development
0:38:53 > 0:38:54and then they look at what you spend on it
0:38:54 > 0:38:57and then they halve that and that, apparently, is your loft value.
0:38:57 > 0:39:01It would be great if they could secure the loft for ten grand,
0:39:01 > 0:39:04but something tells me it could well creep up.
0:39:07 > 0:39:10They've already got an architect on board and apart from their
0:39:10 > 0:39:13impressive plans for the loft conversion,
0:39:13 > 0:39:16the layout of this floor is also going to change.
0:39:16 > 0:39:19This is going to remain as the sitting room
0:39:19 > 0:39:21and we're going to have a mezzanine kitchen looking down.
0:39:21 > 0:39:24So we'll have a kitchen upstairs,
0:39:24 > 0:39:28stairs going up here and then a roof terrace.
0:39:28 > 0:39:30What are the views like? Can you see out the window
0:39:30 > 0:39:32what you might be able to see from the roof terrace?
0:39:32 > 0:39:36If you're really tall, the Tower of London,
0:39:36 > 0:39:39Big Ben, but it's got to have not too much visibility
0:39:39 > 0:39:41so we don't annoy the neighbours
0:39:41 > 0:39:45but there'll still be a nice balcony that you can enjoy the sunshine.
0:39:45 > 0:39:49It sounds fabulous but it all depends on them obtaining the freehold
0:39:49 > 0:39:53to the loft and then getting planning permission to do the conversion.
0:39:53 > 0:39:57They've set a budget of £20,000 for a single refurb
0:39:57 > 0:40:00and up to 65,000 if they go up into the loft.
0:40:00 > 0:40:05I was keen to know how these two came to be working together.
0:40:05 > 0:40:08Let's take a step back. Tell me about you two.
0:40:08 > 0:40:10What's the relationship here?
0:40:10 > 0:40:15Well, in the past I'd been doing some properties
0:40:15 > 0:40:17and at one of the viewings
0:40:17 > 0:40:19Kenham was also looking at one of the flats
0:40:19 > 0:40:22and we started chatting and decided
0:40:22 > 0:40:24we should do a joint-venture together.
0:40:24 > 0:40:28- But until that point, complete strangers?- Yeah.- Fantastic!
0:40:28 > 0:40:30And how long ago was that?
0:40:30 > 0:40:32- About seven months, seven or eight months?- Yep.
0:40:32 > 0:40:36Right. And you got into it as a proper business partnership then?
0:40:36 > 0:40:40- Yeah.- Absolutely, 50-50 joint venture.
0:40:40 > 0:40:43- So what do you do when you're not doing this? - I'm a photographer. Right.
0:40:43 > 0:40:47- What kind of photography?- Anything I can get my hands on at the moment
0:40:47 > 0:40:49because it's quite a new venture for me.
0:40:49 > 0:40:52- I worked ten years as a chartered surveyor.- A chartered surveyor.
0:40:52 > 0:40:55Now that's useful. And Mary, what do you do?
0:40:55 > 0:40:59I work in venture capital, so expanding businesses
0:40:59 > 0:41:01or helping them improve, restructuring,
0:41:01 > 0:41:03or finding better ways of doing things, really.
0:41:03 > 0:41:06They've certainly worked out the best way to maximise
0:41:06 > 0:41:09the potential of this flat.
0:41:09 > 0:41:13They've also got clear timescales calculated, too.
0:41:13 > 0:41:16Best case scenario is to complete in three months, worst-case six months
0:41:16 > 0:41:20and what's their plan when the property is finished?
0:41:20 > 0:41:24If we can't sell it then we'd let it out,
0:41:24 > 0:41:26but with the outcome that we could get a buyer
0:41:26 > 0:41:29we'd sell it and move on to the next flat or house.
0:41:29 > 0:41:32- Great. Congratulations. Good luck with it.- Thank you.
0:41:32 > 0:41:35- Look forward to seeing how you both get on.- Thank you very much.
0:41:35 > 0:41:39If you're looking to develop somewhere where property prices
0:41:39 > 0:41:42are quite expensive, like London, or just to mitigate your risks
0:41:42 > 0:41:44in these difficult financial times,
0:41:44 > 0:41:48joining forces halves the risk
0:41:48 > 0:41:50and also doubles the amount of energy
0:41:50 > 0:41:52there is to put into a project like this.
0:41:52 > 0:41:54Mary and Kenham have made that decision.
0:41:54 > 0:41:56I think they have a great property to work on.
0:41:56 > 0:41:58It all comes down to whether or not
0:41:58 > 0:42:00they get the planning permission to go up though.
0:42:00 > 0:42:03You can find out how it goes later in the show.
0:42:05 > 0:42:07Now that time has passed,
0:42:07 > 0:42:09let's see what has happened to those properties.
0:42:09 > 0:42:11Are we confident they'll look as good as new?
0:42:11 > 0:42:13Let's hope so.
0:42:16 > 0:42:19Back now to Longfield in Kent, where earlier in the programme
0:42:19 > 0:42:24Bill had bought this four-bedroom bungalow for 230,000.
0:42:24 > 0:42:28He was semi-retired from his sheet metal company
0:42:28 > 0:42:31and wanted a project to stop him getting bored.
0:42:31 > 0:42:36Bill's partner, Maureen, supported his plans to remove the walls
0:42:36 > 0:42:40and refurbish, but she wasn't going to be lending a hand.
0:42:41 > 0:42:44So how involved are you going to be with this project?
0:42:44 > 0:42:47I mean, it is something you're interested in as well?
0:42:47 > 0:42:48Yes, I'm very interested in it.
0:42:48 > 0:42:51I think it's really great fun and I can't wait really.
0:42:51 > 0:42:53- And I bet he's pulling faces behind my back!- He's laughing.
0:42:53 > 0:42:56- He's laughing.- Look at the nails! - We've had arguments already.
0:42:56 > 0:42:58- Look at the nails. - Show me the nails.
0:42:58 > 0:43:02- Look, they're ready for decorating. - I think not!
0:43:02 > 0:43:06So all the hard graft was down to Bill and his team.
0:43:08 > 0:43:11Five months later, the full size of the plot can now be
0:43:11 > 0:43:16appreciated because the bushes and the garage have gone.
0:43:17 > 0:43:19From the outside,
0:43:19 > 0:43:23it looks like Bill and Maureen have really transformed the place.
0:43:23 > 0:43:26Inside, the front living room has been redecorated,
0:43:26 > 0:43:29there's a new window,
0:43:29 > 0:43:30flooring,
0:43:30 > 0:43:32and a fire.
0:43:32 > 0:43:34The bedroom across the hall is much bigger
0:43:34 > 0:43:36now that the fitted wardrobes have gone.
0:43:39 > 0:43:44The tiny kitchen lost the hatch and wall into the former dining room.
0:43:47 > 0:43:51A super-large kitchen diner is the result and the flow
0:43:51 > 0:43:55of the bungalow now works much better as Maureen explains.
0:43:57 > 0:44:00Just here we had double doors -
0:44:00 > 0:44:02glass that looked like plastic.
0:44:02 > 0:44:05They were the first things that had to go and then it opened the whole room straight away.
0:44:05 > 0:44:08Bill made the arch wider
0:44:08 > 0:44:10and then we had new windows,
0:44:10 > 0:44:13which again, they're lovely windows and quite big.
0:44:13 > 0:44:16We put the fireplace in which we thought was quite nice.
0:44:16 > 0:44:20Although it's big, it was a nice big room, it could take it.
0:44:20 > 0:44:23Overall, I'm really pleased with it and Bill's worked so hard, you know.
0:44:23 > 0:44:26It's all down to him.
0:44:26 > 0:44:28I've done nothing, and he's done such a great job.
0:44:28 > 0:44:31When we moved in, it was 50-years-old
0:44:31 > 0:44:33and really hadn't been touched in that time.
0:44:33 > 0:44:36The kitchen did cause
0:44:36 > 0:44:38some problems what to do.
0:44:38 > 0:44:41When we knocked the wall down, we discovered there had been
0:44:41 > 0:44:43a door there originally.
0:44:43 > 0:44:45So it's actually turned out
0:44:45 > 0:44:48to be similar to what they did 50 years ago.
0:44:49 > 0:44:51The enlarged kitchen is much better
0:44:51 > 0:44:55and has given the bungalow that all-important focal point.
0:44:55 > 0:44:58But Bill decided against opening the space up any more
0:44:58 > 0:45:00and kept the wall to the small bedroom
0:45:00 > 0:45:03but still managed to create some more space in there.
0:45:06 > 0:45:08The other wall was actually a nine inch wall.
0:45:08 > 0:45:11I think by taking the cupboards out and the boiler,
0:45:11 > 0:45:15we opened that room out and I think it's now turned out
0:45:15 > 0:45:16to be a really useful room.
0:45:18 > 0:45:20Next to that bedroom,
0:45:20 > 0:45:22the smaller bathroom has been refitted
0:45:22 > 0:45:23and now has a shower.
0:45:27 > 0:45:30Next door, the third bedroom has retained the wardrobes,
0:45:30 > 0:45:34but the wardrobe has gone in the small fourth bedroom.
0:45:36 > 0:45:38There is new central heating throughout
0:45:38 > 0:45:40and the place has been rewired.
0:45:42 > 0:45:45The second bathroom's refit does include a bath,
0:45:45 > 0:45:49but outside, there were major issues getting round the back.
0:45:51 > 0:45:53Remember this?
0:45:53 > 0:45:55It's a bit of a squash
0:45:55 > 0:45:57and it's a bit of a squeeze.
0:45:57 > 0:45:59You've got to mind the drainpipes as you come along.
0:45:59 > 0:46:01Forget it if you've got loads of shopping.
0:46:01 > 0:46:05Well, you can now bring your shopping right up to the front door.
0:46:05 > 0:46:08There was a concrete garage here with an asbestos roof.
0:46:08 > 0:46:11Just here, there was a coal bunker that was full of earth
0:46:11 > 0:46:13and it had plants growing out of it.
0:46:13 > 0:46:16When we took the garage down, it meant we had a gap here,
0:46:16 > 0:46:20so I put this fencing up with some flowers growing up it.
0:46:20 > 0:46:23I'm really pleased with the way it's turned out.
0:46:23 > 0:46:25A big improvement. No wonder Bill's pleased.
0:46:25 > 0:46:27So how much has he had to spend
0:46:27 > 0:46:31to get this four bedroom, two bathroom bungalow up to spec?
0:46:31 > 0:46:34The original budget was £40,000
0:46:34 > 0:46:37and we're about £3,000 under that at the moment.
0:46:37 > 0:46:40Under budget? Can't be bad!
0:46:40 > 0:46:44So Bill's been busy, but what about Maureen?
0:46:44 > 0:46:47Did she do any physical work?
0:46:47 > 0:46:51There is no way I was going to chip paint or get wallpaper off with these nails.
0:46:51 > 0:46:54So all I've done is spend a few hours looking at paint,
0:46:54 > 0:46:57coming backwards and forwards with sandwiches and bits and pieces.
0:46:57 > 0:47:00It was his project so I thought, let him do it.
0:47:01 > 0:47:04What does the future now hold for Bill and property?
0:47:05 > 0:47:09If you'd asked me that three weeks ago, I had probably had enough.
0:47:09 > 0:47:13But now, I'm thinking, what am I going to do on Monday?
0:47:13 > 0:47:15Maureen has got next week planned out.
0:47:17 > 0:47:19A bit of relaxation is on the cards.
0:47:22 > 0:47:24Next week, we're going away to Tenerife.
0:47:24 > 0:47:26Just the two of us. A chill out week.
0:47:26 > 0:47:31Then, a few months later, we're going up the Panama with six friends.
0:47:31 > 0:47:35And then, three months after that, we're going to Sydney, Australia.
0:47:35 > 0:47:37# Hooray, hooray
0:47:37 > 0:47:40# It's a holi-holiday. #
0:47:42 > 0:47:43So they've earned the holidays,
0:47:43 > 0:47:46but how much spending money can they take?
0:47:46 > 0:47:49Bill paid £230,000 at the auction
0:47:49 > 0:47:54and his budget of 37,000 takes his total to £267,000.
0:47:54 > 0:47:56Are they going to reap the rewards?
0:47:56 > 0:48:00Let's hear what two local estate agents think.
0:48:01 > 0:48:03I think it's a really good property.
0:48:03 > 0:48:05Lovely finish to the kitchen and bathroom suites.
0:48:05 > 0:48:08They've done well in respect of taking the garage out.
0:48:08 > 0:48:11So overall, a very good job.
0:48:11 > 0:48:14Personally, I think it's a great finish to the property.
0:48:14 > 0:48:16They've put a lot of thought into it.
0:48:16 > 0:48:19The kitchen is very well presented and the bathrooms are good.
0:48:20 > 0:48:22Bill plans to sell,
0:48:22 > 0:48:25but is there a good rental return on bungalows like this?
0:48:25 > 0:48:30If you're going to rent at the moment, you are looking at £1,100 per calendar month.
0:48:30 > 0:48:35We'd be looking to achieve somewhere in the region of £1,250 per calendar month.
0:48:35 > 0:48:38I think that's probably about right for the rental.
0:48:38 > 0:48:41I was thinking between £1,100 in £1,200.
0:48:42 > 0:48:47So rental wise, Bill could expect a yield of around 5% to 5.5%,
0:48:47 > 0:48:49which is better than money in the bank.
0:48:49 > 0:48:54But would resale be a better option, given his £267,000 outlay here?
0:48:57 > 0:49:03I would put this on the market for between £355,000 to £365,000.
0:49:03 > 0:49:06If we were looking to put this property on the market,
0:49:06 > 0:49:10we'd be looking to place it somewhere in the region of £350,000 to £375,000.
0:49:10 > 0:49:15That valuation range would generate a gross profit for Bill
0:49:15 > 0:49:19of £83,000 to £108,000 before the usual selling expenses.
0:49:19 > 0:49:23- Very pleased with that.- I'd be very pleased if we got near that.
0:49:23 > 0:49:27It would certainly make it worthwhile and I was only doing it for something to do.
0:49:27 > 0:49:30So I would be well pleased if I could get anywhere near that.
0:49:30 > 0:49:32Another holiday!
0:49:32 > 0:49:35# We're going to have a party
0:49:36 > 0:49:40# In the Mediterranean sea. #
0:49:41 > 0:49:43So after five months of work,
0:49:43 > 0:49:46Bill's project to get away from it all is coming to an end.
0:49:46 > 0:49:48What does the future hold?
0:49:48 > 0:49:50As a job, I've enjoyed it.
0:49:50 > 0:49:54I've enjoyed getting up in the morning and knowing what you're doing.
0:49:54 > 0:49:59- I've enjoyed working with the tradesmen. It's been good fun really.- Here's to the next one!
0:50:03 > 0:50:06Back now to the West London suburb of Hammersmith,
0:50:06 > 0:50:10where earlier in the programme Kenham and his business partner, Mary,
0:50:10 > 0:50:16had bought a one-bedroom flat on the first floor of this mid-terrace for £254,000.
0:50:20 > 0:50:22It was their first joint property venture
0:50:22 > 0:50:25and they had plenty of experience.
0:50:25 > 0:50:31Kenham is a chartered surveyor who had worked for a commercial property company for many years
0:50:31 > 0:50:34and Mary's a venture capitalist with lots of property clients.
0:50:34 > 0:50:36They had big plans for this flat.
0:50:38 > 0:50:40This is going to remain as the sitting room
0:50:40 > 0:50:43and we're going to have a mezzanine kitchen looking down.
0:50:43 > 0:50:48So we're going to have a kitchen upstairs and then a roof terrace.
0:50:48 > 0:50:51It is a fabulous plan, I have to say. What are the views like?
0:50:51 > 0:50:55Can you see out the window what you might be able to see from the roof terrace?
0:50:55 > 0:51:00If you are really tall, you know, the Tower of London, Big Ben.
0:51:00 > 0:51:04The clock has been ticking and it was four and a half months later
0:51:04 > 0:51:08when we met Mary and Kenham for a second time back at the flat.
0:51:11 > 0:51:17From the road, a new roof and skylights looks promising
0:51:17 > 0:51:19and the inside doesn't disappoint.
0:51:20 > 0:51:24The bay fronted living room that overlooks the road has been transformed
0:51:24 > 0:51:26with a new flooring, windows and furniture.
0:51:27 > 0:51:31Mary and Kenham did manage to purchase the loft space from the council.
0:51:31 > 0:51:35It cost them £35,000, but meant they could create
0:51:35 > 0:51:39this wonderful kitchen up in the former attic.
0:51:43 > 0:51:47It looks down on the living area below, which is very striking.
0:51:47 > 0:51:50So where did they start with this ambitious project?
0:51:52 > 0:51:58Basically, the whole place was gutted. Totally gutted.
0:51:58 > 0:52:00Everything was pretty rotten.
0:52:00 > 0:52:03Effectively, the guys had to rebuild the place
0:52:03 > 0:52:07and obviously add a new floor, new roof.
0:52:09 > 0:52:12We threw the entire roof in a skip and build a brand-new one.
0:52:12 > 0:52:14Rear new roof as well.
0:52:14 > 0:52:17Then we added the brand-new roof terrace
0:52:17 > 0:52:20and transformed what was a horrible one-bedroom flat
0:52:20 > 0:52:24into something pretty different, which is nice and light and airy.
0:52:24 > 0:52:26It's fantastic.
0:52:26 > 0:52:29Any outside space in London is a real bonus
0:52:29 > 0:52:34and these rooftop views across the west of the city add a lot to this flat.
0:52:37 > 0:52:41How long did it take to get the necessary planning permission for the conversion?
0:52:42 > 0:52:45It took about eight to ten weeks to get through planning.
0:52:45 > 0:52:48So that was a painful process
0:52:48 > 0:52:50because you had to sit doing nothing.
0:52:50 > 0:52:54The moment we had every permission in place from the freeholder,
0:52:54 > 0:52:57consent right through to the planners,
0:52:57 > 0:52:59we then had the builders in the next day.
0:52:59 > 0:53:01And they've been busy.
0:53:01 > 0:53:06The original bedroom at the back of the flat is almost ready.
0:53:06 > 0:53:11The ceiling has been replaced and is having some final finishing touches.
0:53:12 > 0:53:16A second bedroom has been created at the back of the flat in the former bathroom.
0:53:16 > 0:53:21It's got a new pitched roof that you can see from the terrace
0:53:21 > 0:53:26and they've used some of the space from the old kitchen as well.
0:53:26 > 0:53:30The rest of the former kitchen has also been used for a new bathroom.
0:53:32 > 0:53:35Which, like all of the flat, has some nice details.
0:53:36 > 0:53:39But what effect has it had on the budget,
0:53:39 > 0:53:42which Kenham had thought would be around £65,000,
0:53:42 > 0:53:45including the loft conversion?
0:53:45 > 0:53:48- How much was it?- I can't remember what the budget was.
0:53:48 > 0:53:54I can tell you what we've spent in total. We're at about 380.
0:53:55 > 0:53:58Once the £254,000 they paid at auction
0:53:58 > 0:54:05is stripped out of that total outlay of 380,000, it leaves £126,000.
0:54:05 > 0:54:11But £35,000 was used to buy the loft so the work has cost around £91,000.
0:54:15 > 0:54:19Time to see if two local estate agents reckon
0:54:19 > 0:54:21it's all been worthwhile.
0:54:22 > 0:54:24I love the light brightness throughout the property.
0:54:24 > 0:54:27The standard of finish is fantastic.
0:54:27 > 0:54:29The accommodation is laid out really well.
0:54:29 > 0:54:31First impressions are very positive.
0:54:31 > 0:54:36I like the kitchen in the mezzanine that overlooks the reception area.
0:54:36 > 0:54:39And of course, the terrace is fantastic as well.
0:54:39 > 0:54:42Two double bedrooms, good sizes. Good-sized bathroom.
0:54:42 > 0:54:45Beautiful sitting-room. Fantastic kitchen and roof terrace.
0:54:45 > 0:54:50Kenham estimates their total spend is 380,000,
0:54:50 > 0:54:53so what's the flat now worth?
0:54:53 > 0:54:56We'd market the property for £499.950
0:54:56 > 0:55:02and expect to achieve a sale price of £480,000 to £500,000.
0:55:02 > 0:55:05I would expect to put this on the market for £499,000.
0:55:06 > 0:55:09Those valuations between 480,000 and 500,000
0:55:09 > 0:55:15could mean a gross profit of between £100,000 and £120,000,
0:55:15 > 0:55:18before the usual selling expenses and taxes.
0:55:18 > 0:55:22Quite pleased with that. It is about where we were expecting.
0:55:22 > 0:55:27We've already had one offer. Actually, a couple of offers.
0:55:27 > 0:55:32But we're hoping to push those little bit higher than they're at at the moment.
0:55:32 > 0:55:36What rental income could the flat achieve if they don't find a buyer?
0:55:36 > 0:55:40I would expect to rent this out for about £1,600 a month.
0:55:40 > 0:55:44We'd rent this property for £2,200 per calendar month.
0:55:44 > 0:55:49I would have said that we were expecting close to £2,000.
0:55:49 > 0:55:52If they can achieve that, we might consider keeping it.
0:55:52 > 0:55:58But the reality is, we need to release the equity and get out.
0:55:58 > 0:56:00Comparing the possible resale profits
0:56:00 > 0:56:04against potential rental yields of between 5% and 7%,
0:56:04 > 0:56:06I would say that's probably the best option.
0:56:06 > 0:56:10I think they've made an amazing job of this West London property,
0:56:10 > 0:56:13especially as a first joint project.
0:56:13 > 0:56:14But what's their verdict?
0:56:14 > 0:56:20It's amazing to see the end product, having seen it at its absolute rock bottom.
0:56:20 > 0:56:23It's great to see it as it is now.
0:56:23 > 0:56:26Would they do it again?
0:56:26 > 0:56:29Yes. The next auction, I think we'll be at, bidding,
0:56:29 > 0:56:31hoping to get another project.
0:56:31 > 0:56:34I think we've been very lucky.
0:56:34 > 0:56:37We had a great team and we intend to keep them busy moving forward.
0:56:41 > 0:56:44We'll be back next time with more auction properties to whet your appetite.
0:56:44 > 0:56:48We hope we've inspired you and given you a glimpse
0:56:48 > 0:56:51into the world of property auctions here on Homes Under The Hammer.
0:56:51 > 0:56:53- See you.- Goodbye.- Goodbye.
0:57:15 > 0:57:17Subtitles by Red Bee Media Ltd.