0:00:02 > 0:00:03In today's challenging markets,
0:00:03 > 0:00:06do you think you could hack it in the world of property?
0:00:06 > 0:00:08It can be an exciting and enjoyable way to make money.
0:00:08 > 0:00:12It can also be rewarding if you buy your home under the hammer.
0:00:37 > 0:00:40There are tense moments in the auction room.
0:00:40 > 0:00:43Who will make the right bid at the right time?
0:00:43 > 0:00:47Property can change people's fortune for better or worse.
0:00:47 > 0:00:50So what inspired the buyers on today's show?
0:00:51 > 0:00:56In Wellington, Shropshire, the kitchen in this mid-terrace
0:00:56 > 0:00:58makes me wonder what else is to come.
0:00:58 > 0:01:00I'm prepared for the worst, basically.
0:01:00 > 0:01:05In Kent, this two-bedroom flat is missing the heart of a home.
0:01:05 > 0:01:10Buying a property without the necessary kitchen is a gamble indeed.
0:01:10 > 0:01:13And in Heaton Norris near Stockport,
0:01:13 > 0:01:16this studio flat has a rather unusual feature.
0:01:17 > 0:01:21Hang on a minute! What's this?
0:01:22 > 0:01:25All these properties have been sold at auction.
0:01:25 > 0:01:29We find out who bought them and what they paid for them when they went under the hammer.
0:01:29 > 0:01:31That's your property, sir.
0:01:34 > 0:01:35I'm in Wellington.
0:01:35 > 0:01:39Not Wellington New Zealand, Chile, Canada or South Africa,
0:01:39 > 0:01:43but Wellington Shropshire, which forms the northern part of Telford.
0:01:45 > 0:01:47# Around the world
0:01:47 > 0:01:49# I've searched for you
0:01:49 > 0:01:52# I travelled on when hope was gone
0:01:52 > 0:01:54# To keep a rendezvous. #
0:01:55 > 0:02:00Just half a mile from the town centre is the property I'm here to see.
0:02:00 > 0:02:05Three-bedroom mid-terrace at a guide price of £55,000.
0:02:05 > 0:02:09It looks a little bit, erm, what's the word, from the outside.
0:02:09 > 0:02:11Let's take a look inside.
0:02:18 > 0:02:20That's not a good start, is it? Let's try around the back.
0:02:20 > 0:02:23# Step on round the back. #
0:02:25 > 0:02:27Luckily, the back door is operational
0:02:27 > 0:02:31and this gives me a chance to check out the back garden.
0:02:31 > 0:02:34It's a good size and the new owners who bought it at auction
0:02:34 > 0:02:37have already cleared and fenced it.
0:02:37 > 0:02:41It's a good start, actually, once you finally get into the place.
0:02:41 > 0:02:45A really nice, useful area with a downstairs loo
0:02:45 > 0:02:48and a place to store your bits and pieces, your wet coats and stuff.
0:02:48 > 0:02:53Then into the kitchen. Clearly, work required.
0:02:53 > 0:02:56I do happen to know that this place was a squat
0:02:56 > 0:03:02prior to it being sold, so I'm prepared for the worst, basically.
0:03:02 > 0:03:07But this is not too bad. Let's see if it gets any better. Or worse.
0:03:07 > 0:03:10Through to the living room and not a bad size.
0:03:10 > 0:03:13Lots of light coming in through that window there.
0:03:13 > 0:03:17You've got a gas fire and, oh my word, what is that?
0:03:17 > 0:03:21I don't think that's what it looks like. Only one way to find out.
0:03:21 > 0:03:24Only kidding! Anyway, it's superfluous.
0:03:24 > 0:03:26It's something you will remove
0:03:26 > 0:03:28and you'll do in the first few moments of being here.
0:03:28 > 0:03:32Something a bit more serious and kind of more expensive to sort out is this.
0:03:32 > 0:03:37This is where the copper pipe that feeds the central heating system would have been
0:03:37 > 0:03:40and as you can see, it's gone. My guess is, it's been stolen.
0:03:40 > 0:03:45And that's an increasingly common problem in houses that are left unoccupied,
0:03:45 > 0:03:48in railway lines, in church roofs.
0:03:48 > 0:03:52Tens of thousands of tonnes of metals are stolen every year
0:03:52 > 0:03:55and the most popular ones are lead and copper.
0:03:55 > 0:03:58It's going to cost quite a lot to replace that
0:03:58 > 0:04:00and the central heating needs to be redone.
0:04:00 > 0:04:05And of course, you then have to consider security while the house is unoccupied.
0:04:05 > 0:04:07You certainly don't want it to happen again.
0:04:07 > 0:04:10Maybe even consider putting plastic pipes in instead. Let's go upstairs.
0:04:10 > 0:04:14# Fantastic plastic people. #
0:04:14 > 0:04:18Yes, plastic pipes wherever possible is the way to go to outsmart the metal thieves.
0:04:18 > 0:04:22I've also noticed that the lead has been stripped from the front bay window roof,
0:04:22 > 0:04:25which definitely needs sorting before the rain gets in.
0:04:25 > 0:04:29Upstairs are the three bedrooms. Two doubles and a single.
0:04:29 > 0:04:34All in need of new flooring and redecorating. And that's not all.
0:04:34 > 0:04:39Up here, a bit of a nice surprise. The toilet and bathroom.
0:04:39 > 0:04:41It's where it should be - upstairs.
0:04:41 > 0:04:44The only slight issue is this bit of the corridor is actually
0:04:44 > 0:04:48over the alleyway between this property and the next-door neighbour.
0:04:48 > 0:04:51So, in effect, it is a flying freehold, or it could be.
0:04:51 > 0:04:54So you definitely need to have your solicitor check that out.
0:04:54 > 0:04:58It needs refurbishing, pretty much like the rest of the house,
0:04:58 > 0:05:01and the only thing I might consider is taking out this wall to open it up.
0:05:01 > 0:05:05You couldn't go all the way down because that's where the stairs are.
0:05:05 > 0:05:08But it would certainly give a bit more of an open feel to the bathroom.
0:05:08 > 0:05:12But all in all, a lot of space, actually, in this house.
0:05:12 > 0:05:15# Gravity you feel can be defied
0:05:15 > 0:05:19# If you just overcome your fear of flying. #
0:05:20 > 0:05:24A flying freehold just means that part of the property
0:05:24 > 0:05:26goes over land that doesn't belong to you.
0:05:26 > 0:05:30It's something mortgage companies can be wary of,
0:05:30 > 0:05:34but if it's just a small area, there are ways of getting around it.
0:05:34 > 0:05:36Perhaps with a specialised insurance.
0:05:37 > 0:05:42What does a local estate agent think of this property, guided at 55,000?
0:05:44 > 0:05:48I think the property is in reasonable condition for this type of property.
0:05:48 > 0:05:51It does need some work doing to it, but mainly cosmetic.
0:05:51 > 0:05:55The bathroom is in relatively good order so there's not too much to be done there.
0:05:55 > 0:05:59Depending on whether it's going to go for re-sale or for rental,
0:05:59 > 0:06:02I would replace the kitchen and put a cheap kitchen in
0:06:02 > 0:06:05or put new worktops and new cupboard doors on.
0:06:05 > 0:06:10Once renovated, would you be able to let this place out easily?
0:06:10 > 0:06:12This would rent relatively well.
0:06:12 > 0:06:14In pounds per calendar month,
0:06:14 > 0:06:18I would recommend that this goes on for £525 per calendar month.
0:06:18 > 0:06:22And a sale value, if it were put back on the market?
0:06:23 > 0:06:27Once this has had the improvements carried out to the property,
0:06:27 > 0:06:30I would suggest a market price of £85,000.
0:06:30 > 0:06:34There's nothing intrinsically wrong with this place.
0:06:34 > 0:06:36It's just a bit of a tired house
0:06:36 > 0:06:38that needs a bit of tender loving care.
0:06:38 > 0:06:42Let's see who came to its aid when it went under the hammer.
0:06:42 > 0:06:48Lot number 16. 40, can we say? 35 then.
0:06:48 > 0:06:5035 bid, thanks. £35,000.
0:06:50 > 0:06:5440, can I say now? At 35. Thank you, 40.
0:06:54 > 0:06:5845? At 40. £45,000. 50?
0:06:58 > 0:07:03At £45,000. I will take one if it helps.
0:07:03 > 0:07:07£46,000. 47? £47,000. 48?
0:07:07 > 0:07:11New bidder. £48,000. 49?
0:07:11 > 0:07:1749. 50? £50,000. At 50.
0:07:17 > 0:07:20There proved to be a lot of interest in this two-bedroom terraced house.
0:07:20 > 0:07:23Bids continued to rise in single thousand increments
0:07:23 > 0:07:26to well over 60,000.
0:07:26 > 0:07:31New bidder at 62. Shaking his head. 62. First bid, there.
0:07:31 > 0:07:35£62,000. Standing at 62. At 62. Back in on the left.
0:07:35 > 0:07:3963. 64. 65. 66.
0:07:39 > 0:07:42Shaking the head. 66, still with you.
0:07:42 > 0:07:46At £66,000. Are we all done now?
0:07:46 > 0:07:49At £66,000 then, first time.
0:07:49 > 0:07:54At £66,000, second time.
0:07:54 > 0:07:57Third and final time at £66,000, all done.
0:07:57 > 0:07:59Your lot.
0:08:00 > 0:08:02# I know what you've got
0:08:02 > 0:08:04# I know what you've got
0:08:04 > 0:08:06# I know what you've got
0:08:06 > 0:08:09# Lord, it does me good. #
0:08:09 > 0:08:13The final bid of 66,000 was made by friends Purnell, who's in the pink,
0:08:13 > 0:08:16and Penny, who have known each other for the past 12 years.
0:08:16 > 0:08:21Penny worked as a teaching assistant at the same school where Purnell taught.
0:08:21 > 0:08:23This is the pair's first successful auction buy
0:08:23 > 0:08:27and I met them at their purchase in Wellington to find out more.
0:08:27 > 0:08:30- Purnell, Penny, lovely to meet you both.- Lovely to meet you too.
0:08:30 > 0:08:32- Congratulations.- Thanks very much.
0:08:32 > 0:08:35So why this particular house then?
0:08:35 > 0:08:37I just think it's a really good starter home.
0:08:38 > 0:08:41It's quite good in size. Structurally, it's sound.
0:08:41 > 0:08:44It needs a makeover,
0:08:44 > 0:08:48but I think it's a lovely little property to move into.
0:08:48 > 0:08:50I think Penny is right about that.
0:08:50 > 0:08:53As first investments go, this looks a good choice
0:08:53 > 0:08:56and that's because she's been doing her homework.
0:08:56 > 0:08:59After a long spell at home, nursing a broken ankle,
0:08:59 > 0:09:03Penny picked up plenty of tips from this very programme.
0:09:03 > 0:09:07But could this new business partnership be make or break for the friendship?
0:09:08 > 0:09:11So how do you think it's going to work between the two of you?
0:09:11 > 0:09:15Being friends is one thing but being business partners is slightly different.
0:09:15 > 0:09:18I'm just going to tell her what's happening!
0:09:18 > 0:09:20And then I'll do what I want!
0:09:20 > 0:09:25- It's going to be good. We complement each other.- We do, actually. - We've had such fun so far.
0:09:25 > 0:09:30- Any disagreement so far?- Yes, but nothing we couldn't work out.
0:09:30 > 0:09:33Nothing that we're going to fall out about.
0:09:33 > 0:09:36What have you squabbled about so far, in a friendly kind of way?
0:09:36 > 0:09:39Cooker hoods.
0:09:39 > 0:09:42Some of us feel cooker hoods aren't the be all and end all of the world, but some people do.
0:09:42 > 0:09:49I think it's necessary. Sky dish - keep or get rid of. I keep. Get rid of.
0:09:49 > 0:09:52So there are bound to be a few differences of opinion
0:09:52 > 0:09:54and at least they're about minor things.
0:09:54 > 0:09:58Just as long as they remember to put profit before personal taste,
0:09:58 > 0:10:00they should be OK.
0:10:01 > 0:10:04So tell me what you're going to do to sort it out?
0:10:04 > 0:10:07What are the plans for it?
0:10:07 > 0:10:10Not too much. We're hoping to leave it as it is.
0:10:10 > 0:10:12We're not changing any rooms, shapes of. New kitchen.
0:10:12 > 0:10:16Clearing out some of the kitchen so that we can have a breakfast
0:10:16 > 0:10:18- and eating area in there. - Dining kitchen.
0:10:18 > 0:10:21- What was it upstairs?- New bathroom.
0:10:21 > 0:10:24We're going to change the boiler and have a combi boiler
0:10:24 > 0:10:27so that you can actually use the airing cupboard space
0:10:27 > 0:10:30and open the bathroom up a little bit more.
0:10:32 > 0:10:36And then obviously, a new cloakroom suite downstairs as well.
0:10:38 > 0:10:41Clearing the garden and making that much more open.
0:10:41 > 0:10:45The garden was completely grown over but we've started work on that.
0:10:45 > 0:10:49The plants were about 50 foot high and 18 foot wide!
0:10:49 > 0:10:52You couldn't actually see much in the garden at all.
0:10:53 > 0:10:56I can think of anything else at the moment.
0:10:56 > 0:10:58No, I think those are the main things.
0:10:59 > 0:11:02So the hard work has already begun in earnest.
0:11:02 > 0:11:05They'll be bringing in tradesmen to do the work
0:11:05 > 0:11:08and they plan to sell the house on rather than rent it out.
0:11:08 > 0:11:14But how penny-pinching will Penny and Purnell be with their budget?
0:11:14 > 0:11:18Have you got any idea of how much it's going to cost to get it sorted then?
0:11:18 > 0:11:21About £12,000 to £13,000.
0:11:21 > 0:11:25With some put by in case, because you never know, do you?
0:11:25 > 0:11:26Exactly. Very wise.
0:11:26 > 0:11:29And in terms of how long you are hoping It'll take?
0:11:30 > 0:11:32- Two or three months, we hope.- Yes.
0:11:32 > 0:11:36- I would like to do it earlier if possible.- Of course.
0:11:36 > 0:11:38Congratulations both of you.
0:11:38 > 0:11:42I look forward to see how you get on and we'll be back.
0:11:44 > 0:11:47Moving from being friends to business partners
0:11:47 > 0:11:51is never without its potential problems.
0:11:51 > 0:11:55In this case, will we return to find a satellite dish or not
0:11:55 > 0:11:57and a cooker hood or not?
0:11:57 > 0:12:01You can find out if they are still friends later in the show.
0:12:04 > 0:12:06# Sail away with me
0:12:08 > 0:12:11# What will be will be
0:12:11 > 0:12:14# I want to hold you now
0:12:14 > 0:12:16# Now
0:12:16 > 0:12:17# Now. #
0:12:17 > 0:12:21This is Erith, south-east London, in the borough of Bexley.
0:12:21 > 0:12:27Money is being spent here because Erith falls within the Thames Gateway redevelopment zone.
0:12:27 > 0:12:29With good transport links and a nearby railway station
0:12:29 > 0:12:34with links to London Bridge only 35 minutes away, things look promising here.
0:12:36 > 0:12:42You would think after all these years I'd have seen every single style of Victorian house, but no.
0:12:42 > 0:12:45I don't think I've ever seen a terrace quite like this.
0:12:45 > 0:12:48These are purpose-built Victorian flats,
0:12:48 > 0:12:51so rather than a shared entrance or two doors at ground level,
0:12:51 > 0:12:54you have steps up to the flat.
0:12:54 > 0:12:57I rather like that idea because everybody gets their own front door
0:12:57 > 0:13:00and you're not losing valuable floor space.
0:13:00 > 0:13:04And I rather like the guide price too. Just £55,000 for this two bed.
0:13:06 > 0:13:12The design is practical with each unit very separate, one on top of the other.
0:13:12 > 0:13:15And it's always good to have your own front door from the street.
0:13:15 > 0:13:19The exterior would benefit from a lick of paint around the windows.
0:13:19 > 0:13:24The roof looks in reasonable condition but the guttering could do with a once over.
0:13:24 > 0:13:27As for parking, there's plenty of space on this unusual street.
0:13:27 > 0:13:29Let's see what's in store inside.
0:13:31 > 0:13:34This corridor goes on forever.
0:13:34 > 0:13:38You certainly don't think it's going to be this big from the outside.
0:13:38 > 0:13:40But what I love about it is the high ceilings.
0:13:40 > 0:13:44I know it's Victorian and they're quite notorious for wonderful ceiling height,
0:13:44 > 0:13:48but it has a lovely feeling of spaciousness inside, which is great.
0:13:48 > 0:13:53You've got the lounge. It's a shame the fireplace has been taken out.
0:13:53 > 0:13:57This wallpaper is probably hiding all manner of sins underneath it.
0:13:57 > 0:14:01So you might have to factor in re-plastering all the walls everywhere
0:14:01 > 0:14:04because look, polystyrene tiles, incredibly dated.
0:14:04 > 0:14:08A fire hazard. But not a bad size room.
0:14:08 > 0:14:12This would be a bedroom. Really comfortable. What I love is this. Come and look.
0:14:12 > 0:14:16You've got a wonderful view out there of a beautiful weeping willow.
0:14:16 > 0:14:20I certainly didn't expect to see so much greenery out of this window.
0:14:20 > 0:14:23But something you'll have to factor in as well,
0:14:23 > 0:14:27these are single glazed so you will need to think about double glazing.
0:14:27 > 0:14:29But overall, it's a really good start.
0:14:33 > 0:14:38So far, so good, with the size of these rooms and that lovely view.
0:14:38 > 0:14:43But the single second bedroom isn't such a showstopper after such a promising start.
0:14:43 > 0:14:46Let's hope it's not downhill from here.
0:14:48 > 0:14:52When I read in the catalogue description, "kitchen (not fitted)",
0:14:52 > 0:14:55I was hoping I might find something freestanding.
0:14:55 > 0:15:01But no, there just isn't a kitchen fitted at all. Hilarious.
0:15:01 > 0:15:03But the lack of units is not the issue here.
0:15:03 > 0:15:06You can add a kitchen, easy peasy.
0:15:06 > 0:15:10It's getting a mortgage on a property without one that's not easy at all.
0:15:10 > 0:15:13It's often a requirement to secure finance
0:15:13 > 0:15:16and buying a property without the necessary kitchen
0:15:16 > 0:15:17is a gamble indeed.
0:15:17 > 0:15:20# Don't gamble with love
0:15:20 > 0:15:22# Don't gamble. #
0:15:22 > 0:15:26Having nowhere to cook might not be the only issue here
0:15:26 > 0:15:29as having no kitchen at all could seriously hinder
0:15:29 > 0:15:32anyone wanting to gain finance on this flat.
0:15:32 > 0:15:35That bathroom at the back of the kitchen is less than ideal.
0:15:35 > 0:15:38There's a section of garden space out the back,
0:15:38 > 0:15:42but the stairs are rotten, so I can't venture down and explore.
0:15:42 > 0:15:47I'm now slightly less enamoured with this flat as there seem to be more negatives than positives
0:15:47 > 0:15:50and there's even more bad news.
0:15:50 > 0:15:52# Gamble with love
0:15:52 > 0:15:54# You'll lose it for sure. #
0:15:54 > 0:15:57So the flat needs considerable work
0:15:57 > 0:15:59but does that explain the £55,000 guide price?
0:15:59 > 0:16:02Well, I'm afraid it doesn't.
0:16:02 > 0:16:05It's low because as a rather unhappy coincidence,
0:16:05 > 0:16:07the lease has 55 years left to run.
0:16:07 > 0:16:11Well actually, it's got 54 and a half years, which is a bit worse.
0:16:11 > 0:16:15So you can add into the mix fewer mortgage companies willing to lend,
0:16:15 > 0:16:18higher rates of interest from those who do,
0:16:18 > 0:16:22the lease renewal to go through, finding the freeholder,
0:16:22 > 0:16:27agreeing the price, dealing with the paperwork and then paying for the thing,
0:16:27 > 0:16:30which will certainly be over £10,000 for a lease this short.
0:16:30 > 0:16:34This issue will have put plenty of people off, with good reason.
0:16:34 > 0:16:38But for the plucky developer who is not afraid of months of legal hassle,
0:16:38 > 0:16:42this could still really be a good investment.
0:16:42 > 0:16:44So it's not all doom and gloom.
0:16:44 > 0:16:48But what does a local estate agent make of this property?
0:16:48 > 0:16:52We asked one along to find out if it's worth taking a chance on it.
0:16:52 > 0:16:53# Baby take a chance on me. #
0:16:53 > 0:16:55It's a good size.
0:16:55 > 0:16:58It needs some work doing to it, obviously,
0:16:58 > 0:17:00to get it into good condition.
0:17:00 > 0:17:04A nice outlook at the back and it's the wider part of the road, which is better.
0:17:04 > 0:17:07And you've got the park at the end of the road, which is good as well.
0:17:09 > 0:17:12What could this flat achieve as a rental?
0:17:12 > 0:17:14In good condition,
0:17:14 > 0:17:18the flat should rent for around £700 to £800 per calendar month.
0:17:19 > 0:17:22What about the re-sale market?
0:17:23 > 0:17:26If the property was sold with a sensible lease,
0:17:26 > 0:17:30according to the current area, and in good condition,
0:17:30 > 0:17:36then it would probably be heading towards £120,000, something like that.
0:17:36 > 0:17:41This flat has been neglected and it comes with plenty of baggage
0:17:41 > 0:17:43but I say, with that guide price, give it a chance.
0:17:43 > 0:17:47The patient, spend some money, sought the lease out
0:17:47 > 0:17:50and you could have a lovely little home or a great renter.
0:17:50 > 0:17:53Let's see who took this one on at the auction.
0:17:54 > 0:17:57This lot went under the hammer near the end of the day
0:17:57 > 0:18:00when there weren't as many bidders in the room.
0:18:01 > 0:18:06Lot 120. Erith in Kent. It's a two bedroom raised ground floor flat.
0:18:06 > 0:18:08Who'd like to give me a start on this?
0:18:08 > 0:18:13What about 50 then? Give it a nice bit of discount. 50,000? Thank you.
0:18:13 > 0:18:1950, I've got. 51. 52. 53.
0:18:19 > 0:18:2454. 55. 56.
0:18:26 > 0:18:2957. 58. 59.
0:18:29 > 0:18:3260,000.
0:18:33 > 0:18:3861. 62. New place. 63.
0:18:38 > 0:18:4064.
0:18:40 > 0:18:4465. 66. 67.
0:18:44 > 0:18:5068. 69. 70,000. 71.
0:18:50 > 0:18:5672. 73. Go on. 74.
0:18:56 > 0:18:59Anybody else? It sounds cheap to me, but anyway.
0:18:59 > 0:19:04If not, 74 for the first, 74 for the second,
0:19:04 > 0:19:0774 for the third and final time.
0:19:07 > 0:19:11All done. Sold for 74,000. Good buy, that.
0:19:11 > 0:19:15That successful bid of £74,000 was made by Sarrita.
0:19:15 > 0:19:17She works as a building surveyor
0:19:17 > 0:19:21and has renovated a few properties over the last couple of years
0:19:21 > 0:19:22as a part-time venture.
0:19:22 > 0:19:26I am sure her surveyor skills have come in very handy.
0:19:26 > 0:19:29# Handy
0:19:29 > 0:19:30# Handy
0:19:30 > 0:19:33# Just a good time loving girl. #
0:19:33 > 0:19:37I caught up with Sarrita back at the flat to find out more.
0:19:39 > 0:19:44Congratulations. Why did you want to buy this property at auction?
0:19:44 > 0:19:46I was looking for a new buy to let property.
0:19:46 > 0:19:50I had a look through the catalogue and this one looked the most interesting.
0:19:50 > 0:19:53This is actually the only one I came to see from this auction.
0:19:53 > 0:19:56So do you have a portfolio of properties?
0:19:56 > 0:20:00I wouldn't really call it that. I've got two other properties.
0:20:00 > 0:20:03So what was it about this one that caught your eye?
0:20:03 > 0:20:06I liked that the rooms are very big. There's quite a lot of space.
0:20:06 > 0:20:09I would have preferred two double bedrooms
0:20:09 > 0:20:12but for a three-person property, this is pretty big.
0:20:12 > 0:20:15# So big My heart is so big
0:20:15 > 0:20:17# My love is so big. #
0:20:17 > 0:20:20This flat is big indeed, but did the short lease
0:20:20 > 0:20:23and missing kitchen make financing it difficult?
0:20:23 > 0:20:27- Did you manage to get a mortgage for this?- I did.
0:20:27 > 0:20:30Even without a kitchen in place, which is quite surprising?
0:20:30 > 0:20:34By the skin of my teeth. We completed a couple of days late.
0:20:34 > 0:20:37So that must have been a very nerve-racking time for you,
0:20:37 > 0:20:40because otherwise, you'd have had to have stumped up all the cash.
0:20:40 > 0:20:46- Very stressful. Or lose the deposit. - So how do you feel now?- Relieved.
0:20:46 > 0:20:47# Relax. #
0:20:47 > 0:20:52Phew! Sarrita didn't make it easy on herself but can relax now.
0:20:52 > 0:20:55Well, to a degree.
0:20:55 > 0:20:58She hopes to extend the lease after a couple of years renting it out,
0:20:58 > 0:21:00which means putting money aside.
0:21:00 > 0:21:05Her renovation budget is limited to between £10,000 and £12,000,
0:21:05 > 0:21:09so she'll need to be creative to find the best way to spend that cash.
0:21:12 > 0:21:16So for £10,000 to £12,000, what are you going to be doing with that money?
0:21:16 > 0:21:19I'm going to spend quite a bit of it in the kitchen.
0:21:19 > 0:21:24The kitchen is very important when it comes to looking at lets, especially if people are sharing.
0:21:24 > 0:21:28There needs to be enough space in here for you to sit down and have something to eat
0:21:28 > 0:21:31and also, if you are two adults that are not a couple and share,
0:21:31 > 0:21:33you need to be able to get away from each other.
0:21:33 > 0:21:35So you need some space to sit down here
0:21:35 > 0:21:37and some space to sit down in the front room.
0:21:37 > 0:21:39That always makes a big difference.
0:21:41 > 0:21:45Sarrita to also plans to replace windows, add a new front door,
0:21:45 > 0:21:48re-insulate, re-plaster and rewire throughout.
0:21:48 > 0:21:51A new kitchen will be installed
0:21:51 > 0:21:54and in the bathroom, a new bathroom suite will be put in
0:21:54 > 0:21:56and completely retiled.
0:21:57 > 0:22:00Out the back, that rotten staircase will be replaced
0:22:00 > 0:22:03and eventually, the garden will be cleaned up.
0:22:03 > 0:22:07Sarrita plans to do the stripping out and decorating with the help of her husband,
0:22:07 > 0:22:10but when it comes to the bigger jobs,
0:22:10 > 0:22:13she'll call in builders she's used before on her other projects.
0:22:13 > 0:22:15It sounds like you know what you are doing.
0:22:15 > 0:22:18How long have you got to do the work?
0:22:18 > 0:22:20Not a very long time.
0:22:20 > 0:22:23One of the conditions of the mortgage is that the work has to be done
0:22:23 > 0:22:25within three months of the purchase date.
0:22:25 > 0:22:29Wow! That's quite a pressure. So why is that?
0:22:29 > 0:22:34What they do is, they give you a mortgage on the full value of the property with the work done
0:22:34 > 0:22:38and they put in a timescale for when it needs to be completed.
0:22:38 > 0:22:42So the property has to be re-inspected by the mortgage company within 12 weeks.
0:22:42 > 0:22:47- And if you haven't done it within 12 weeks?- You lose your mortgage. - Right, get cracking!
0:22:47 > 0:22:51- Good luck with this. It's been great meeting you today.- Thank you.
0:22:51 > 0:22:55So Sarrita is a very careful planner.
0:22:55 > 0:22:58She'll need to be to get all the work done in that budget
0:22:58 > 0:23:00and that tight timescale.
0:23:00 > 0:23:03What a way to pile on the pressure!
0:23:03 > 0:23:05There are a few ifs and buts with this one
0:23:05 > 0:23:07and I will be interested to see how it goes.
0:23:07 > 0:23:10You can find out how she does later in the programme.
0:23:11 > 0:23:17Coming up - in Heaton Norris, I find out if good things really do come in small packages.
0:23:17 > 0:23:19There isn't a lot of space. Excuse me.
0:23:21 > 0:23:25In London, how has that tight deadline gone for Sarrita?
0:23:25 > 0:23:28My builders took a three-week holiday in the middle of the work,
0:23:28 > 0:23:31which made things rather nerve-racking.
0:23:31 > 0:23:33But first, back in Shropshire,
0:23:33 > 0:23:36are Penny and Purnell still good friends?
0:23:36 > 0:23:39Sometimes, I let her have her way, and once or twice,
0:23:39 > 0:23:41she might have let me have my way!
0:23:43 > 0:23:46Now, we're back in Wellington, Shropshire,
0:23:46 > 0:23:49with friends and colleagues, Penny and Purnell,
0:23:49 > 0:23:53bought this three-bedroom house for £66,000.
0:23:56 > 0:23:59This was the first development property for the pals,
0:23:59 > 0:24:04so could their new working relationship test their friendship?
0:24:04 > 0:24:06# You've got a friend in me. #
0:24:08 > 0:24:10I'm just going to tell her what's happening!
0:24:10 > 0:24:13And then I will do what I want!
0:24:13 > 0:24:16It's going to be good. We complement each other a lot.
0:24:16 > 0:24:18We've had such fun so far.
0:24:19 > 0:24:22They had had some minor disagreements about their plans,
0:24:22 > 0:24:25but one thing they did agree on was that there was a lot to do.
0:24:26 > 0:24:29The property had been occupied by squatters and unfortunately,
0:24:29 > 0:24:32not only was it in need of fresh decoration
0:24:32 > 0:24:36but also much of the copper piping was missing, even the water tank.
0:24:39 > 0:24:42They had hoped to have the work completed in two to three months.
0:24:42 > 0:24:44Nearly three months later, we're back.
0:24:44 > 0:24:47So have the fledgling property developers
0:24:47 > 0:24:50managed to turn this into a nest egg?
0:24:52 > 0:24:56Well, outside, the property has been smartened up with a new front door
0:24:56 > 0:25:01and the weed-infested paving slabs have been replaced by gravel.
0:25:01 > 0:25:05Downstairs, a new toilet has been installed, replacing the old one.
0:25:05 > 0:25:08And a lick of paint has freshened up the entrance.
0:25:08 > 0:25:11New flooring runs through into the kitchen,
0:25:11 > 0:25:13which has been completely overhauled.
0:25:13 > 0:25:18New cupboards, a gas hob and a combi boiler have all been installed,
0:25:18 > 0:25:22using copper piping again, which their tradespeople did recommend.
0:25:22 > 0:25:25In the living room, the decor has been smartened up.
0:25:25 > 0:25:29The gas fire has been removed and new central heating installed.
0:25:29 > 0:25:34Upstairs, the bedrooms have all been redecorated, with new carpets laid.
0:25:34 > 0:25:37But it's the bathroom which has changed the most.
0:25:37 > 0:25:40Originally, we thought we were going to be able to keep the bath
0:25:40 > 0:25:44and possibly the wash hand basin, box it in.
0:25:44 > 0:25:47There was a little bit of damage to the bath.
0:25:47 > 0:25:52We thought we were going to be able to repair it but then we thought, it's not viable.
0:25:52 > 0:25:55So we've taken it out completely, put a brand-new bathroom in
0:25:55 > 0:26:01and we've moved the door back quite substantially,
0:26:01 > 0:26:03so it's actually given a lot more area
0:26:03 > 0:26:06and we've taken out the cupboard that was in there.
0:26:06 > 0:26:10Now, you walk through and it's very open and fresh, I think.
0:26:10 > 0:26:14It is quite a nice-sized bathroom, to be honest, now.
0:26:15 > 0:26:18So what other major decisions had to be taken?
0:26:18 > 0:26:22One of the main things was the decision we had to make about the heating
0:26:22 > 0:26:26because all of the copper pipes and the water tank had been stolen.
0:26:26 > 0:26:30So we made the decision to put in a combi boiler.
0:26:30 > 0:26:34We were very pleased that there was actually less plastering than we thought we'd have to do.
0:26:34 > 0:26:39So we did a lot of filling and a lot of sanding and that went well.
0:26:39 > 0:26:42And the kitchen. We're just so thrilled with the kitchen
0:26:42 > 0:26:44because it was not set out so well.
0:26:44 > 0:26:46We're really glad now that people have got a kitchen
0:26:46 > 0:26:49where they can sit and eat in and cook in,
0:26:49 > 0:26:52so that the living area can be completely for living.
0:26:52 > 0:26:56And the fact that the downstairs toilet ended up looking lovely.
0:26:56 > 0:26:58And a downstairs toilet is always good to have!
0:26:58 > 0:27:04OK, it's crunch time. Did they fall out or are they friends forever?
0:27:04 > 0:27:09You don't know how you are going to get on, friends working together.
0:27:09 > 0:27:13But we've done really well.
0:27:13 > 0:27:19I'm very proud and she's lovely. We've worked well together.
0:27:19 > 0:27:21We're very different.
0:27:21 > 0:27:24We've had times where we've totally disagreed about things
0:27:24 > 0:27:26but we've compromised on what we've done.
0:27:26 > 0:27:30Sometimes I have let her have her way and once or twice,
0:27:30 > 0:27:32she might have let me have my way!
0:27:32 > 0:27:36So very different skills, I think, we've brought to it.
0:27:36 > 0:27:39We've both learnt a lot and we've had such fun together.
0:27:39 > 0:27:41It's been really good.
0:27:43 > 0:27:47So the partnership has worked well, which is always a relief to hear.
0:27:47 > 0:27:50But what about the £12,000 to £13,000 budget
0:27:50 > 0:27:52they set for the refurbishment?
0:27:52 > 0:27:54How close were they to that?
0:27:56 > 0:28:00Practically, I think we possibly went £30 over our budget.
0:28:00 > 0:28:03But we were very conscious
0:28:03 > 0:28:06and the things that we couldn't have, we didn't have.
0:28:07 > 0:28:10We came back within their three-month timescale
0:28:10 > 0:28:12but how long did it actually take?
0:28:12 > 0:28:18I think we actually finished in six weeks, from start to finish.
0:28:18 > 0:28:20Just six weeks. I am impressed.
0:28:20 > 0:28:25And to top it all, they've even managed to sell the property already.
0:28:25 > 0:28:29Including all their fees and costs from the auction,
0:28:29 > 0:28:32Penny says they've spent £15,000.
0:28:32 > 0:28:35So added to the £66,000 purchase price,
0:28:35 > 0:28:38that's a total outlay of £81,000.
0:28:40 > 0:28:43Have they made any money?
0:28:43 > 0:28:45Let's find out what two local estate agents think.
0:28:45 > 0:28:48First impressions of the property are very positive.
0:28:48 > 0:28:50They've concentrated on the key areas,
0:28:50 > 0:28:52which were the kitchen and the bathroom.
0:28:52 > 0:28:55They've given it a good refurb throughout and put new carpets in.
0:28:55 > 0:28:58The kitchen is great. They've done a really nice job of that.
0:28:58 > 0:29:03Very contemporary. The bathroom is great. Limited space, but they've used it well.
0:29:03 > 0:29:04They've got the refurb work right.
0:29:04 > 0:29:08It is all the right colours. Magnolias, whites, neutral carpets.
0:29:08 > 0:29:10It's pretty much spot on.
0:29:10 > 0:29:14The kitchen itself is very neutrally decorated. Nice modern units.
0:29:14 > 0:29:17The fact that it's an open plan kitchen diner, I think,
0:29:17 > 0:29:21would appeal towards the family market, which this could appeal to.
0:29:21 > 0:29:25Out of interest, what could this have earned as a buy to let?
0:29:25 > 0:29:28If this was put on the rental market,
0:29:28 > 0:29:32I would expect to achieve roundabout £550 per calendar month.
0:29:32 > 0:29:36In the current rental market, this property should achieve about £500 per calendar month.
0:29:36 > 0:29:40A very healthy yield of between 7.5% and 8%.
0:29:40 > 0:29:44But they have actually already sold the property on,
0:29:44 > 0:29:47so what ballpark figures should they have been expecting,
0:29:47 > 0:29:50bearing in mind their total outlay of £81,000?
0:29:50 > 0:29:55I would put this currently on the market at £95,000.
0:29:55 > 0:29:59I would expect the property to achieve around about £95,000.
0:29:59 > 0:30:04Penny and Purnell actually sold the property for £90,000
0:30:04 > 0:30:08within just two weeks of it going on sale.
0:30:10 > 0:30:13It's a buyer's market a bit at the moment, isn't it?
0:30:13 > 0:30:17It is, and at the end of the day, yes, we may have got 95,
0:30:17 > 0:30:21but we may have had to stay on the market for a lot longer.
0:30:21 > 0:30:24We've sold and we're moving on to the next one now.
0:30:25 > 0:30:28And they've made a quick pre-tax profit of £9,000
0:30:28 > 0:30:30to invest in the next one too.
0:30:31 > 0:30:34For a first time project, I have to hand it to them,
0:30:34 > 0:30:36this pair have done good.
0:30:38 > 0:30:41Fantastic team. Really good. Really worked well together.
0:30:41 > 0:30:46We complemented each other. We enjoyed it, we had fun, and sold it.
0:30:47 > 0:30:50- So, we're happy, aren't we?- Very.
0:30:53 > 0:30:57I'm in the popular residential area of Heaton Norris,
0:30:57 > 0:31:00about five minutes outside Stockport town centre.
0:31:00 > 0:31:01A very popular place to live.
0:31:01 > 0:31:05But there is one big issue with living around here.
0:31:05 > 0:31:11# Get your motor running Head out on the highway
0:31:11 > 0:31:14# Looking for adventure
0:31:14 > 0:31:18# And whatever comes our way. #
0:31:18 > 0:31:21This is the A6.
0:31:21 > 0:31:23It's a really major road
0:31:23 > 0:31:26that slices right through the centre of Heaton Norris.
0:31:26 > 0:31:29It leads from Stockport and further afield
0:31:29 > 0:31:31right through to Manchester city centre.
0:31:31 > 0:31:33And at rush-hour, it's chock-a-block.
0:31:33 > 0:31:38So you wouldn't necessarily want a property too close to this.
0:31:38 > 0:31:41# Born to be wild. #
0:31:41 > 0:31:45This may put some buyers off but you certainly can't knock the location
0:31:45 > 0:31:48in terms of transport links.
0:31:48 > 0:31:51Thankfully, the property I'm here to see
0:31:51 > 0:31:54is set a reasonable distance back, so that is a good start.
0:31:54 > 0:31:58It's a studio flat. It had a guide price of £35,000.
0:31:58 > 0:32:01It's on the second floor. Let's take a look.
0:32:04 > 0:32:09Inside, you have the communal hall and it's in good nick.
0:32:09 > 0:32:13Let's head upstairs to see what it's like there.
0:32:15 > 0:32:18It's a studio flat. I'm not expecting a lot of space.
0:32:18 > 0:32:21Let's see what there is. Straight through the door.
0:32:21 > 0:32:23Bathroom and toilet there.
0:32:23 > 0:32:27The suite looks like it could do with being replaced
0:32:27 > 0:32:30and you certainly need a shower screen and a shower over bath.
0:32:30 > 0:32:34Very small cupboard with the immersion heater
0:32:34 > 0:32:36and hot water tank in there.
0:32:36 > 0:32:38Another cupboard.
0:32:38 > 0:32:41A bit more space with more central heating type gubbins.
0:32:42 > 0:32:45And that's it for here. There's not a lot of space. Excuse me.
0:32:45 > 0:32:49# Hey, darling, squeeze me in. #
0:32:49 > 0:32:52Everything in this flat runs off this corridor
0:32:52 > 0:32:55and as space is limited, these two cupboards
0:32:55 > 0:32:58provide much-needed storage space.
0:32:58 > 0:33:02So far, nothing out of the ordinary, but we're not done yet.
0:33:05 > 0:33:07Hang on a minute! What this?
0:33:07 > 0:33:09A very strange bit of, erm...
0:33:11 > 0:33:13..well, divider.
0:33:13 > 0:33:16I think maybe if it was painted a different colour it would be better.
0:33:16 > 0:33:18But hey, it's a bit of interest
0:33:18 > 0:33:22in what's otherwise a fairly characterless,
0:33:22 > 0:33:24is it fair to say that, one room.
0:33:24 > 0:33:28This is your living room, bedroom, dining room, whatever.
0:33:28 > 0:33:33One nice thing though, it's a bit small, but you've got a huge great window.
0:33:33 > 0:33:36Floor-to-ceiling, basically, with glass.
0:33:36 > 0:33:40Great views out across the bit of garden there,
0:33:40 > 0:33:42so that's a really nice thing to have.
0:33:42 > 0:33:45If you were careful about how you did your interior design in here,
0:33:45 > 0:33:49maybe have a fold down bed and picked your colours carefully,
0:33:49 > 0:33:52you could actually make this a really nice living environment.
0:33:52 > 0:33:56The only other room you've got is unfortunately a bit of a disappointment.
0:33:56 > 0:33:59It's the kitchen. As you can see, it's in a bit of a state.
0:33:59 > 0:34:02It's small but that's not a surprise.
0:34:02 > 0:34:05Again, clever design in here to make the most of what isn't a massive space,
0:34:05 > 0:34:08but it could still be really nice.
0:34:12 > 0:34:16With a studio flat like this, you have to use the space efficiently.
0:34:16 > 0:34:20The only window in the flat is big, but it's single glazed.
0:34:20 > 0:34:23Another potential cost to consider is heating.
0:34:23 > 0:34:29There is underfloor heating here but it needs to be checked to see if it actually works.
0:34:29 > 0:34:32A few changes inside and this could be a great little home.
0:34:32 > 0:34:36Outside, the block is looked after by a management company
0:34:36 > 0:34:38for which the owner pays a monthly fee.
0:34:38 > 0:34:41The flat also comes with a parking permit
0:34:41 > 0:34:43and garages are available to rent.
0:34:43 > 0:34:48So is this the perfect pad for the commuting professional?
0:34:48 > 0:34:50With a guide price of £35,000,
0:34:50 > 0:34:54we asked a local property expert for his opinion.
0:34:55 > 0:34:58This flat, you know, great little studio flat.
0:34:58 > 0:35:01It needs some modernisation but, you know,
0:35:01 > 0:35:03it'll look good when it's finished.
0:35:03 > 0:35:06I think this property is going to appeal to a single person.
0:35:06 > 0:35:09Somebody who's looking for a base for 6 to 12 months.
0:35:09 > 0:35:12It's a nice little flat really.
0:35:12 > 0:35:16What needs to be done before someone can move in?
0:35:16 > 0:35:20I think, obviously, full redecoration. New carpets.
0:35:20 > 0:35:24New kitchen, new bathroom. I would replace the windows.
0:35:24 > 0:35:26You'd probably need to check the lease.
0:35:26 > 0:35:29I think you'd probably spend around £7,000 or £8,000
0:35:29 > 0:35:32to get this property to a very good standard.
0:35:33 > 0:35:35Not a massive spend needed here
0:35:35 > 0:35:38but how much is this studio flat worth?
0:35:38 > 0:35:43I think in its current state, you'd be looking at receiving offers of around about £45,000.
0:35:45 > 0:35:47And once it's had a makeover?
0:35:47 > 0:35:51Renovated, you could easily achieve £65,000.
0:35:51 > 0:35:54How much could this Stockport studio flat rent out for?
0:35:54 > 0:35:57Rental on this property, done up to a good standard,
0:35:57 > 0:36:03you'd achieve between £350 and maybe £375 per calendar month.
0:36:03 > 0:36:06Well, as studio flats go, I think this is pretty good.
0:36:06 > 0:36:10You weren't going to expect anything massive. What there is just works.
0:36:10 > 0:36:13It needs a bit of sorting out, especially in that kitchen.
0:36:13 > 0:36:17But I think this could be a good investment. It's certainly in a good location.
0:36:17 > 0:36:20Let's see who bought it when it went under the hammer.
0:36:24 > 0:36:28I'm looking for a minimum of £30,000 and we'll be away.
0:36:28 > 0:36:30£30,000, I'm looking for. A good buy at 30.
0:36:30 > 0:36:31At £30,000. 30.
0:36:31 > 0:36:34At £30,000. Thank you, sir. 31, I'm looking for now.
0:36:34 > 0:36:37At 31,000. 31. 32.
0:36:37 > 0:36:40There are two of you in it. 32,000. 33.
0:36:40 > 0:36:44At 33,000. 34. At 34,000. 35?
0:36:44 > 0:36:4935,000. 36. At 36. 37,000. Yes.
0:36:49 > 0:36:53At 37. 38. At 39,000. 40.
0:36:53 > 0:36:56At £40,000. 41.
0:36:56 > 0:37:00At 41,000. 42. At 42,000. 43.
0:37:00 > 0:37:03At 43,000. 44. At 44,000. 45.
0:37:03 > 0:37:07You're shaking your head. 500, maybe? No. At 44,000 then.
0:37:07 > 0:37:09At 44,000 for the first time.
0:37:09 > 0:37:1644. 45,000 then. We're just over the line at £44,000.
0:37:16 > 0:37:1946? At 46,000.
0:37:19 > 0:37:23No, at 46,000 then for the first time. Second time.
0:37:23 > 0:37:29Third and final time, at £46,000. That's your property, sir.
0:37:29 > 0:37:33The successful bid of £46,000, £11,000 over the guide price,
0:37:33 > 0:37:36came from property developer Ivor.
0:37:38 > 0:37:43Ivor's property career began as an estate agent when he was 18.
0:37:43 > 0:37:46Although he's been doing his own properties for over ten years,
0:37:46 > 0:37:50he still does occasional estate agency work in the Manchester area.
0:37:50 > 0:37:54He's bought this flat jointly with silent investors.
0:37:54 > 0:37:57I met up with him to find out the plans.
0:37:57 > 0:38:01- Ivor, lovely to meet you.- Nice to meet you too.- Congratulations.
0:38:01 > 0:38:03Tell me why you wanted to buy this place.
0:38:03 > 0:38:07I think there's good value in the Manchester property market at the moment.
0:38:07 > 0:38:10This one, we thought, was particularly good value
0:38:10 > 0:38:12and of interest.
0:38:12 > 0:38:15We think it'll rent well.
0:38:15 > 0:38:17So why this particular flat then?
0:38:17 > 0:38:20I like the location. It is well located.
0:38:20 > 0:38:25It's halfway between Stockport and Manchester. Two very good towns.
0:38:25 > 0:38:29The block is good. It is well managed. No flat roof.
0:38:29 > 0:38:32It is nice and secure with it being on the second floor,
0:38:32 > 0:38:37so hopefully, we'll get a young professional person in here who will pay us a good rent.
0:38:37 > 0:38:39What kind of rent might you expect?
0:38:39 > 0:38:43We're hoping to achieve somewhere between £350 and £400 per calendar month.
0:38:43 > 0:38:46If we do a good job, which we're hoping to do,
0:38:46 > 0:38:49then hopefully we'll get towards the top end of that.
0:38:52 > 0:38:54Ivor has ten other properties that he rents out
0:38:54 > 0:38:58and although this flat is a joint-venture with other silent investors,
0:38:58 > 0:39:02it'll be Ivor who keeps an eye on it, as he lives nearby.
0:39:02 > 0:39:06He wants all of his properties within a five-mile radius,
0:39:06 > 0:39:10which will certainly come in handy during the renovation stage here.
0:39:11 > 0:39:14Tell me what you plan to do to sort it out then.
0:39:14 > 0:39:18First and foremost, the kitchen. We're completely ripping it out
0:39:18 > 0:39:21and putting in a nice new fitted kitchen
0:39:21 > 0:39:23with a stainless steel oven and hob.
0:39:23 > 0:39:26The bathroom, we're not decided on yet.
0:39:26 > 0:39:28It's possible we may get away with it.
0:39:28 > 0:39:31Obviously, we're going to be putting in a shower and doing some tiling,
0:39:31 > 0:39:35regardless of whether we keep the existing suite or not.
0:39:35 > 0:39:38And then, obviously the colour scheme needs to be changed.
0:39:38 > 0:39:41- Get rid of the pink perhaps. - Yes, I think so.
0:39:41 > 0:39:46There's only one window in the flat. The one in the lounge. It's a big one but it's not double glazed.
0:39:46 > 0:39:51- What are you going to do about that? - It is a single-glazed window.
0:39:51 > 0:39:57It is in good condition so there is a possibility we may keep that for now.
0:39:57 > 0:39:59At the moment, it's got underfloor heating.
0:39:59 > 0:40:01Are you going to keep that or replace it?
0:40:01 > 0:40:03We're going to be replacing the heating.
0:40:03 > 0:40:06We're not even sure if the existing heating works.
0:40:06 > 0:40:10So we're going to be putting in modern electric panel heaters
0:40:10 > 0:40:14that will provide an instant heat rather than one you have to wait for.
0:40:14 > 0:40:17They'll hopefully be a lot cheaper to run.
0:40:18 > 0:40:22# All the small things
0:40:22 > 0:40:24# True care, truth brings. #
0:40:28 > 0:40:32It may be small but putting a new kitchen in here and updating the decor
0:40:32 > 0:40:36will definitely make a world of difference to this studio flat.
0:40:36 > 0:40:40Ivor also plans to furnish it so could well be on the lookout
0:40:40 > 0:40:43for a fold-down bed to help maximise space in the main room.
0:40:43 > 0:40:46He's got a few decisions to make over the next couple of weeks
0:40:46 > 0:40:49about the rest of the work but given his experience,
0:40:49 > 0:40:53I bet he's got his figures all worked out.
0:40:53 > 0:40:58- What's the budget for the work? - We're hoping to get away with £5,000 all in.
0:40:58 > 0:41:02That would include the kitchen and the decorating, new carpets,
0:41:02 > 0:41:05and hopefully furniture as well.
0:41:05 > 0:41:07What's the timescale?
0:41:07 > 0:41:10We're hoping to have everything done within four weeks.
0:41:10 > 0:41:13The guys were here measuring up for the new kitchen yesterday.
0:41:13 > 0:41:16So pretty much as soon as you guys have moved out,
0:41:16 > 0:41:19we'll be moving in and getting started.
0:41:19 > 0:41:21Congratulations and good luck with it.
0:41:21 > 0:41:25- We'll look forward to see how you get on.- Thanks.
0:41:25 > 0:41:28Ivor, undeterred by the vagaries of the property market
0:41:28 > 0:41:32and I think he's got himself a good little investment flat here.
0:41:32 > 0:41:35How will he get on working his magic,
0:41:35 > 0:41:38turning it into a beautiful professional pad?
0:41:38 > 0:41:41You can find out later in the show.
0:41:43 > 0:41:46If you want to maximise your profit,
0:41:46 > 0:41:49then getting your timing right is absolutely critical.
0:41:49 > 0:41:52And you need to be flexible with your plans.
0:41:52 > 0:41:57And not let time pass you by. Let's see how our buyers got on.
0:41:59 > 0:42:03Time now to head back to Erith in Greater London,
0:42:03 > 0:42:06where earlier we met part-time property developer Sarrita,
0:42:06 > 0:42:08who also works as a building surveyor.
0:42:10 > 0:42:13She bought this two-bedroom Victorian flat
0:42:13 > 0:42:17at auction for £74,000 and planned to rent it out.
0:42:19 > 0:42:21The place was tired and dated
0:42:21 > 0:42:24and in need of a complete cosmetic overhaul.
0:42:30 > 0:42:34The stairs down to the back garden were rotten and condemned,
0:42:34 > 0:42:37so needed to be completely replaced.
0:42:39 > 0:42:43Whilst the bathroom was in need of something new and less blue.
0:42:43 > 0:42:45The kitchen, however, was non-existent.
0:42:45 > 0:42:47Not even a kitchen sink.
0:42:47 > 0:42:50This and a short lease made it tough for Sarrita
0:42:50 > 0:42:53to get finance on this flat but she managed it,
0:42:53 > 0:42:58leaving her with a £10,000 to £12,000 budget to sort the place out.
0:42:58 > 0:42:59So for £10,000 to £12,000,
0:42:59 > 0:43:03what are you going to be doing with that money?
0:43:03 > 0:43:06I'm going to spend quite a bit of it in the kitchen.
0:43:06 > 0:43:12The kitchen is very important when it comes to looking at lets, especially if people are sharing.
0:43:12 > 0:43:16There needs to be enough space in here for you to sit down and have something to eat.
0:43:16 > 0:43:21Also, if you are two adults that are not in a couple, you need to be able to get away from each other.
0:43:21 > 0:43:25So you need some space to sit down here and space to sit down in the front room.
0:43:25 > 0:43:26That always makes a big difference.
0:43:26 > 0:43:30Sarrita had to get her skates on for this refurbishment
0:43:30 > 0:43:33as a strict condition of her mortgage arrangement
0:43:33 > 0:43:37was to complete the work within three months of the purchase date.
0:43:37 > 0:43:41So with the pressure on, we returned just over nine weeks later
0:43:41 > 0:43:44to see if she has dressed this property up for success.
0:43:45 > 0:43:50# I'm gonna get dressed for success
0:43:50 > 0:43:54# Shaping me up for the big time, baby
0:43:54 > 0:43:58# Get dressed for success
0:43:58 > 0:44:01# Shaping it up for your love
0:44:01 > 0:44:04# For your love. #
0:44:04 > 0:44:07The living room has been completely redecorated
0:44:07 > 0:44:09with new flooring and radiators.
0:44:11 > 0:44:13And that shell of a kitchen, well,
0:44:13 > 0:44:17hey, good-looking, it's time to get cooking!
0:44:17 > 0:44:20It was really nice to be able to fit out the kitchen.
0:44:20 > 0:44:23It was a completely empty room when we started out
0:44:23 > 0:44:25with nothing in it at all.
0:44:25 > 0:44:29So we've changed all of the fittings and we've installed new appliances
0:44:29 > 0:44:33and we'll be fitting it out entirely with white goods.
0:44:33 > 0:44:36I am really happy with how it's turned up and I like how it looks.
0:44:36 > 0:44:40I hope the tenants will really enjoy this space.
0:44:40 > 0:44:44I'm sure Sarrita's tenants will love this kitchen.
0:44:44 > 0:44:46Now, let's see what's changed in those bedrooms.
0:44:51 > 0:44:55New windows, carpets and light colours throughout.
0:44:55 > 0:44:58Goodness, it feels so much better in here.
0:45:05 > 0:45:08In the bathroom, there's a brand new clean white suite
0:45:08 > 0:45:11with modern fixtures and fittings.
0:45:11 > 0:45:13Sarrita has definitely been busy in here
0:45:13 > 0:45:16and only has a few things left to finish.
0:45:16 > 0:45:19But how did she get on with her builders?
0:45:19 > 0:45:23I really enjoy working with my builders. They're a really nice crew.
0:45:23 > 0:45:26It's really important to have a good relationship with them
0:45:26 > 0:45:29because they were able to help me to reduce the cost
0:45:29 > 0:45:34of my staircase from £4,000 to £1,400 by building the staircase themselves.
0:45:34 > 0:45:40I think these are the times when you really rely on your relationship with them.
0:45:40 > 0:45:44How did Sarrita fare with her timescale?
0:45:44 > 0:45:47We had 12 weeks within which to complete the work.
0:45:47 > 0:45:51It was a condition of the mortgage. We just about made it.
0:45:51 > 0:45:54We finished the work in nine weeks. It was very difficult.
0:45:54 > 0:45:57Unfortunately, my builders have a three-week holiday
0:45:57 > 0:46:01in the middle of the work, which made things rather nerve wracking.
0:46:01 > 0:46:03Eventually, we got everything done.
0:46:03 > 0:46:05# It's all been done. #
0:46:08 > 0:46:12I'm glad Sarrita got all the work done in time
0:46:12 > 0:46:14but her budget of £12,000 was stretched to the limit
0:46:14 > 0:46:17as the back staircase added extra cost.
0:46:17 > 0:46:21She ended up spending around £13,000 on everything.
0:46:21 > 0:46:26The flat only has 54 years left on its lease, so she's been in touch with the freeholder
0:46:26 > 0:46:30and hopes to extend this in 18 months or so.
0:46:30 > 0:46:32at a cost of around £10,000.
0:46:35 > 0:46:37Sarrita bought this flat for £74,000
0:46:37 > 0:46:41and has spent around £13,000 on the renovation.
0:46:41 > 0:46:46That's a combined spend of around £87,000.
0:46:50 > 0:46:52We asked to local estate agents along
0:46:52 > 0:46:55to hear what they thought of this Victorian flat.
0:46:58 > 0:47:01I think the finish is good, generally. Nice flooring.
0:47:01 > 0:47:04Everything has had a complete go through and a re-plaster.
0:47:04 > 0:47:07The standard of fittings in the kitchen and bathroom
0:47:07 > 0:47:08are pretty good quality as well.
0:47:11 > 0:47:14I think it's great in here. It's lovely and light.
0:47:14 > 0:47:16It's quite spacious.
0:47:16 > 0:47:19It's great having the benefit of the outside garden space as well.
0:47:19 > 0:47:21And of course, there' s parking in the front.
0:47:21 > 0:47:25Lovely open aspect in the back. Super little two-bedroom apartment.
0:47:27 > 0:47:30Good first impressions but let's get down to business.
0:47:30 > 0:47:34Bearing in mind Sarrita's £87,000 spend here,
0:47:34 > 0:47:39is it worth selling before extending that rather short lease?
0:47:39 > 0:47:42With the short lease, at its current length,
0:47:42 > 0:47:46I would imagine the value would be in the region of £70,000 to £80,000.
0:47:46 > 0:47:51The limited market means it may only achieve in the region of £70,000.
0:47:51 > 0:47:54So definitely not a good idea to sell now then.
0:47:54 > 0:47:58But what will it be worth with the lease extended,
0:47:58 > 0:48:03by which time Sarrita's total spend will be closer to £100,000.
0:48:03 > 0:48:05I would imagine that we could sell this property on
0:48:05 > 0:48:08for in the region of £120,000.
0:48:08 > 0:48:12I would expect to be able to achieve in the region
0:48:12 > 0:48:14of £125,000 for this property.
0:48:14 > 0:48:19That's pretty much what I was expecting for this area.
0:48:21 > 0:48:24No doubt about it then.
0:48:24 > 0:48:27Hold on and extend the lease to maximise your profits, Sarrita.
0:48:27 > 0:48:30But for the foreseeable future, this flat is to let,
0:48:30 > 0:48:32so what could she be charging?
0:48:32 > 0:48:38I would expect to achieve between £825 and £850 per calendar month.
0:48:38 > 0:48:42It should be fairly easy to get in the region of £800 per month.
0:48:42 > 0:48:44Maybe slightly higher.
0:48:44 > 0:48:47That's pretty high. That's higher than I was expecting.
0:48:51 > 0:48:54If Sarrita gets rental like that,
0:48:54 > 0:48:58she'll be looking at a tidy yield of between 11% and 12%.
0:48:58 > 0:49:02She certainly got her sums right with this property.
0:49:04 > 0:49:07So, is she tempted to try her hand at an auction again?
0:49:09 > 0:49:10Yes, I would do it again.
0:49:10 > 0:49:14It was very hard work but I really enjoy it and I'm a sucker,
0:49:14 > 0:49:15so I would do it again.
0:49:22 > 0:49:26It's time now to head back to Heaton Norris in Stockport,
0:49:26 > 0:49:29where earlier, we met property developer Ivor,
0:49:29 > 0:49:32who bought this studio flat at auction for £46,000.
0:49:37 > 0:49:42This cosy little studio flat only had one room and one window
0:49:42 > 0:49:48and it was, erm, very colourful and in desperate need of new decor.
0:49:52 > 0:49:55The bathroom also looked rather rough around the edges
0:49:55 > 0:49:58and the small kitchen was in a bit of a state.
0:49:58 > 0:50:03So I'm sure Ivor's budget of £5,000 would be put to very good use here.
0:50:05 > 0:50:08Tell me what you plan to do to sort it out then.
0:50:08 > 0:50:12First and foremost, the kitchen. We're completely ripping it out
0:50:12 > 0:50:17and putting in a nice new fitted kitchen with a stainless steel oven and hob.
0:50:17 > 0:50:19The bathroom, we're not decided on yet.
0:50:19 > 0:50:21We may get away with it.
0:50:21 > 0:50:24Obviously, we're going to put in a shower and do some tiling,
0:50:24 > 0:50:28regardless of whether we keep the existing suite or not.
0:50:28 > 0:50:32And then, obviously, the colour scheme needs to be changed.
0:50:32 > 0:50:34- Get rid of the pink, perhaps. - Yes, I think so.
0:50:37 > 0:50:40With a timescale of only four weeks and a budget of £5,000,
0:50:40 > 0:50:43we return six weeks later to see if Ivor
0:50:43 > 0:50:47managed to turn this studio flat into a number one investment.
0:50:50 > 0:50:52# Number one. #
0:50:54 > 0:50:59The bathroom has been redecorated and tiled, but the suite remains.
0:50:59 > 0:51:01A new shower and shower screen have been installed,
0:51:01 > 0:51:04so it definitely feels much better in here.
0:51:04 > 0:51:07But now, let's take a look at the main living area.
0:51:07 > 0:51:09# Number one. #
0:51:17 > 0:51:20As you can see, it's been completely redecorated.
0:51:20 > 0:51:24All the horrible pink woodwork has all been blanked out.
0:51:24 > 0:51:29All the plug sockets, all the light switches have been replaced.
0:51:29 > 0:51:34New light fittings, obviously a new carpet and the new energy-efficient heater.
0:51:34 > 0:51:37So I am really pleased with the way it looks.
0:51:39 > 0:51:41Ivor's done a job in this room.
0:51:41 > 0:51:45It feels so much brighter and these light colours help create a feeling of space.
0:51:45 > 0:51:48But what about that rather compact kitchen?
0:52:01 > 0:52:05Basically, the old kitchen had to be completely ripped out.
0:52:05 > 0:52:09It was completely unusable. As you can see, we've put all new units in.
0:52:09 > 0:52:13Obviously, new sink. New stainless steel fitted oven and hob,
0:52:13 > 0:52:16with the extractor hood. New tiling.
0:52:16 > 0:52:19And obviously the floor is tiled also.
0:52:19 > 0:52:23So I think it's made the kitchen and transformed it.
0:52:23 > 0:52:27I am really pleased with the way it's turned out.
0:52:30 > 0:52:33The original underfloor heating was not very effective
0:52:33 > 0:52:37so new electric heaters were installed throughout the flat.
0:52:37 > 0:52:40They work much better and are also more energy-efficient.
0:52:42 > 0:52:47Ivor thought about replacing the main window with a double glazed one
0:52:47 > 0:52:50but decided against it as the current one was in good condition.
0:52:50 > 0:52:54But why did he leave that strange partition in the living area?
0:52:56 > 0:52:59I think it's a little bit of a feature.
0:52:59 > 0:53:04It kind of breaks the room up, rather than just having one blank room.
0:53:04 > 0:53:09I think the room is set out quite nicely.
0:53:11 > 0:53:15Ivor used the team of workmen he's worked with before on previous developments.
0:53:15 > 0:53:17How hands-on is he?
0:53:17 > 0:53:20No, I was not hands-on at all, I must admit.
0:53:20 > 0:53:24I've done absolutely nothing myself in this project.
0:53:24 > 0:53:27Even my wife did the cleaning last night.
0:53:29 > 0:53:31All I've done is basically sign the checks.
0:53:31 > 0:53:35That has been the extent of my hands on!
0:53:37 > 0:53:40Everything seemed straightforward for Ivor on this renovation
0:53:40 > 0:53:43until he realised the water tank needed replacing,
0:53:43 > 0:53:46which he hadn't budgeted for.
0:53:46 > 0:53:50It's taken six weeks to finish rather than the four he planned.
0:53:50 > 0:53:53Did that boiler bust his budget?
0:53:53 > 0:53:58The original budget was £5,000. That's what I thought we'd spend.
0:53:58 > 0:54:02In actual fact, we've gone about £500 over budget
0:54:02 > 0:54:05but given the standard of finish that we've got here
0:54:05 > 0:54:08and the fact that we had to put in a new water tank,
0:54:08 > 0:54:12I am not unhappy with that at all.
0:54:13 > 0:54:19Ivor bought this flat £46,000 and spent £5,500 on the renovation.
0:54:19 > 0:54:22That's a combined outlay of £51,500.
0:54:22 > 0:54:26He already has a tenant lined up to move in straight away,
0:54:26 > 0:54:29so let's find out what he should be charging.
0:54:35 > 0:54:37We invited along two local estate agents
0:54:37 > 0:54:40to see what they thought of this cosy studio flat.
0:54:42 > 0:54:44I think it's a nice flat.
0:54:44 > 0:54:46I think it would be great for a first-time buyer
0:54:46 > 0:54:49or a potential buy-to-let investor. It is nice and bright.
0:54:49 > 0:54:52Not the biggest flat, but it's a good location.
0:54:52 > 0:54:56It is a little bit small but it is just a studio.
0:54:56 > 0:55:00I do like the fact that he's put a good-quality kitchen in there
0:55:00 > 0:55:03and he's also popped a shower in the bathroom.
0:55:04 > 0:55:09Let's talk money. What kind of resale value could you expect from this flat?
0:55:09 > 0:55:12Remember, Ivor spent £51,500 here.
0:55:14 > 0:55:16The sales market is a bit stagnant at the moment
0:55:16 > 0:55:20but I would market the property at around about £65,000,
0:55:20 > 0:55:24but would look at getting offers of around about £60,000.
0:55:24 > 0:55:29In the sales market, I would expect to achieve in the region of £65,000.
0:55:29 > 0:55:31Yes, that seems fair enough.
0:55:31 > 0:55:35It shows a nice profit in the short term,
0:55:35 > 0:55:41and it's reassuring to know that we've made a good investment.
0:55:41 > 0:55:44But this is very much one for the future.
0:55:45 > 0:55:50Those sales figures could give Ivor a profit of between £8,500 and £13,500,
0:55:50 > 0:55:53minus the usual selling expenses.
0:55:53 > 0:55:57But as Ivor already has a tenant lined up,
0:55:57 > 0:55:59what sort of rent could he be charging?
0:55:59 > 0:56:05In the current market I would expect to rent this property for £400 to £450 per calendar month.
0:56:05 > 0:56:08I think this property is ideal for the rental market
0:56:08 > 0:56:12and I would market the property at £395 per calendar month.
0:56:14 > 0:56:19That rent of £395 a month means this tiny property
0:56:19 > 0:56:22would give a bumper yield of just over 9%.
0:56:22 > 0:56:25- Happy with that, Ivor?- Yes.
0:56:25 > 0:56:29In actual fact, that's the exact rent we've managed to achieve on the property.
0:56:29 > 0:56:33That exact figure. So I am quite pleased with that.
0:56:33 > 0:56:36So what's next for Ivor?
0:56:36 > 0:56:40Just to continue and pick up a property here and there.
0:56:40 > 0:56:44So onwards and upwards.
0:56:46 > 0:56:50We'll be back with more great stories for you next time on Homes Under The Hammer.
0:56:50 > 0:56:54- Yes, Join us then from more auction action.- Goodbye.- Goodbye.
0:57:18 > 0:57:20Subtitles by Red Bee Media Ltd