0:00:02 > 0:00:05Fancy buying property at auction, but don't know where to start?
0:00:05 > 0:00:07Perhaps we can show you some tricks of the trade.
0:00:07 > 0:00:12Yes, join us now as we follow buyers who bought their homes under the hammer.
0:00:37 > 0:00:39Auction rooms aren't intimidating places,
0:00:39 > 0:00:41you know, anyone can buy there.
0:00:41 > 0:00:44Yes, today we talk to intrepid buyers who've taken the plunge,
0:00:44 > 0:00:47but did they sink or swim?
0:00:47 > 0:00:48Let's find out.
0:00:50 > 0:00:53In Driffield, Yorkshire, the layout of this cottage
0:00:53 > 0:00:55has me mightily confused.
0:00:55 > 0:00:58I really do not know what's going on here at all.
0:00:59 > 0:01:03This three-storey terrace in Mid Glamorgan is a great workout.
0:01:04 > 0:01:06And as staircases go...
0:01:06 > 0:01:09my thighs are starting to burn!
0:01:10 > 0:01:12And in Exmouth, Devon,
0:01:12 > 0:01:15this two bedroom maisonette is bigger than you'd think.
0:01:16 > 0:01:19It's got more space than some houses I've been in.
0:01:22 > 0:01:24All these properties are being sold at auction.
0:01:24 > 0:01:27We'll find out who bought them and what they paid for them
0:01:27 > 0:01:29- when they went under the hammer. - And done.
0:01:41 > 0:01:47Today I'm in Foston on the Wolds, a picturesque village
0:01:47 > 0:01:51in a conservation area in Driffield in the East Ridings of Yorkshire.
0:01:51 > 0:01:53Well, it's a quiet spot
0:01:53 > 0:01:57and if you're looking for the rural life this could well give you it.
0:02:00 > 0:02:02And quiet it certainly is.
0:02:02 > 0:02:05There are no pubs or local shops around here though.
0:02:05 > 0:02:09They're about five miles away in the neighbouring town of Driffield.
0:02:09 > 0:02:12But what you do have here is peace and quiet.
0:02:12 > 0:02:15MUSIC: "It's Oh So Quiet" by Bjork
0:02:15 > 0:02:21It's a three-bedroom detached cottage with large gardens and some out buildings.
0:02:21 > 0:02:26It's actually specifically mentioned in the Foston on the Wolds conservation appraisal document,
0:02:26 > 0:02:29not as a listed building but of historical interest.
0:02:29 > 0:02:33The guide price was £125-150,000 quid.
0:02:33 > 0:02:36This is it. Suddenly I'm very interested.
0:02:43 > 0:02:46A tingle of excitement as you open the front door and...
0:02:46 > 0:02:47what do you find?
0:02:47 > 0:02:50Well, entrance hall here, kind of unusual.
0:02:51 > 0:02:55Strange little cubby hole there with a window in it so...
0:02:56 > 0:02:58That's just a bit of wood that,
0:02:58 > 0:02:59I'd get rid of that for a start.
0:02:59 > 0:03:04Not a good sign, there is a bathroom and loo there, and my guess is that's the only one in the property.
0:03:04 > 0:03:07So it's really not in an ideal location.
0:03:07 > 0:03:09Through to, then, what is the kitchen.
0:03:09 > 0:03:12At last, some lovely little features. A fireplace.
0:03:12 > 0:03:13Well, I don't think it is a fireplace.
0:03:13 > 0:03:17It's a sort of cooky, oveny kind of thing.
0:03:17 > 0:03:19I haven't seen one like that before, quite unusual.
0:03:19 > 0:03:22Whether or not you'd keep that or not, I don't know.
0:03:22 > 0:03:24But as a kitchen space, it's not bad.
0:03:24 > 0:03:28The whole property is not that wide, and basically from front to back.
0:03:28 > 0:03:33Nice to have the open beams, though. Then through into your living room, sitting room,
0:03:33 > 0:03:36you have got the open fire but what we've also got
0:03:36 > 0:03:38is clearly some really bad problems.
0:03:38 > 0:03:46Yeah, if you look, I'm afraid this isn't just cobwebs.
0:03:48 > 0:03:52That is dry rot.
0:03:52 > 0:03:54Not good.
0:03:54 > 0:03:56# B-b-b-b-bad
0:03:56 > 0:03:59# Bad to the bone.. #
0:03:59 > 0:04:03It looks pretty bad, and you'd need to investigate further
0:04:03 > 0:04:06to see if it's just in this area.
0:04:06 > 0:04:10The last thing you want is to find dry rot everywhere.
0:04:10 > 0:04:14The living room's tired and dated, and the bathroom is a good size
0:04:14 > 0:04:17but not ideally placed as it's downstairs.
0:04:17 > 0:04:21But let's see what is upstairs before we think about moving it.
0:04:21 > 0:04:24So upstairs and into one of the bedrooms.
0:04:24 > 0:04:27You've got this door, but then it gets really, really weird.
0:04:27 > 0:04:32Look at this! The whole wall comes out, to create this massive opening.
0:04:32 > 0:04:34So, large stairways, then this huge, great space.
0:04:34 > 0:04:39I really do not know what's going on here at all.
0:04:39 > 0:04:42Let's hope it improves a bit on the other side.
0:04:42 > 0:04:47Well, I'm not sure it does, for a start there's this chimney breast.
0:04:47 > 0:04:49It has obviously been blocked up,
0:04:49 > 0:04:51at least there's a fire brick to stop damp,
0:04:51 > 0:04:54but it either wants to go or actually be used.
0:04:54 > 0:04:57To put a real fire in there or something.
0:04:57 > 0:04:59The room itself is not bad in terms of size,
0:04:59 > 0:05:01and it's nice that you can see the garden out there.
0:05:01 > 0:05:04But then you come through to the third bedroom,
0:05:04 > 0:05:06and the only access is through that second bedroom.
0:05:06 > 0:05:09Not at all ideal.
0:05:09 > 0:05:12This room, it's not a bad size, but it just doesn't work, does it?
0:05:12 > 0:05:15The whole of the upstairs needs to be reconfigured,
0:05:15 > 0:05:16and I think the way to do that
0:05:16 > 0:05:19would be to maybe move the stairs round through 90 degrees
0:05:19 > 0:05:23to the edge of the property and create a corridor at the rear.
0:05:23 > 0:05:24Have three decent sized bedrooms
0:05:24 > 0:05:26and hopefully the bathroom up here as well.
0:05:26 > 0:05:28Because at the moment, it REALLY doesn't work.
0:05:28 > 0:05:31# It's not working out
0:05:31 > 0:05:34# But we're not giving in... #
0:05:34 > 0:05:37So to make this higgledy-piggledy cottage work,
0:05:37 > 0:05:40you'd need to do some jiggery-pokery with the layout.
0:05:40 > 0:05:44And that's upstairs and downstairs, including the stairs!
0:05:44 > 0:05:47You might even get planning for an extension.
0:05:47 > 0:05:50So we've established that the property itself has charm aplenty,
0:05:50 > 0:05:52what about the plot it sits on?
0:05:52 > 0:05:55Well, first of all, there are these little outbuildings.
0:05:55 > 0:05:59Very useful, and lovely little things like this old pump.
0:05:59 > 0:06:01Wonderful. Very useful.
0:06:01 > 0:06:04They obviously need a bit of tender loving care, like the house,
0:06:04 > 0:06:05but very useful space.
0:06:05 > 0:06:09But then the garden itself, well, it is overgrown, but within it
0:06:09 > 0:06:13there are some gorgeous bushes and shrubs and roses.
0:06:13 > 0:06:16I don't know, get this sorted out, mow the grass,
0:06:16 > 0:06:20and it doesn't let down, does it? It's great!
0:06:22 > 0:06:26Bearing in mind the guide price of between £125,000 and £150,000,
0:06:26 > 0:06:28we invited along a local estate agent
0:06:28 > 0:06:31to hear his thoughts on this cottage.
0:06:31 > 0:06:33It's a great auction lot.
0:06:33 > 0:06:38It is something that we would like 10 of in every auction.
0:06:38 > 0:06:43It offers excellent potential for anybody who is after a good project.
0:06:43 > 0:06:44Let's talk figures,
0:06:44 > 0:06:48what could it reach on the resale market once refurbished?
0:06:48 > 0:06:53With just the basics done and no extension,
0:06:53 > 0:06:58I would expect it to realise, in the current market, around £225,000.
0:06:59 > 0:07:02What about as a rental?
0:07:02 > 0:07:05In a letable condition
0:07:05 > 0:07:10it would realise in the region of £550-£575 per calendar month.
0:07:10 > 0:07:14Well, what is there not to love about this place?
0:07:14 > 0:07:17Yes, lots of work required to sort it out,
0:07:17 > 0:07:21but I'm sure it would have generated a lot of interest
0:07:21 > 0:07:22before the auction.
0:07:22 > 0:07:25Let's see who was lucky enough to get it on auction day.
0:07:29 > 0:07:33Last but most definitely not least, it's a unique cottage.
0:07:33 > 0:07:39Where will we start with that one, somebody? £135,000, say? £135,000?
0:07:39 > 0:07:42125, then? No bidders, have I no opening bidder?
0:07:42 > 0:07:45£100,000. £100,000, I'm bid.
0:07:45 > 0:07:47I should think so, as well.
0:07:47 > 0:07:50There should be plenty of interest, surely, at £100,000.
0:07:50 > 0:07:5110, 110.
0:07:51 > 0:07:5212, 112.
0:07:52 > 0:07:54114. 16.
0:07:54 > 0:07:5518. 118.
0:07:55 > 0:07:5720, 120.
0:07:57 > 0:08:00Two, 122. Four, 124.
0:08:00 > 0:08:03Six, eight. 128.
0:08:03 > 0:08:0530. 130,000.
0:08:05 > 0:08:09Two, 132. Four, 134.
0:08:09 > 0:08:11Six, 136.
0:08:11 > 0:08:14137, 138.
0:08:14 > 0:08:17139,000. 40? £140,000.
0:08:17 > 0:08:20Two? 142.
0:08:20 > 0:08:22Four? 144. Six? 146.
0:08:22 > 0:08:25Eight? 148, 50. 150.
0:08:25 > 0:08:29Two, 152. Four, 154. Six.
0:08:29 > 0:08:33158, 160, two, 164, 166,
0:08:33 > 0:08:35168, 70.
0:08:35 > 0:08:39170,000, two, 172, 174.
0:08:39 > 0:08:42£174,000.
0:08:42 > 0:08:45It's at the back of the room, at £174,000.
0:08:45 > 0:08:49Once, £174,000, twice,
0:08:49 > 0:08:55it's your last chance at £174,000 and I'm selling at 174.
0:08:57 > 0:09:00Fighting off all competition there was Sandra,
0:09:00 > 0:09:04with her final bid of £174,000.
0:09:04 > 0:09:07She describes herself as a property prospector,
0:09:07 > 0:09:11with a large portfolio of commercial and residential buildings.
0:09:11 > 0:09:14She works with her husband, Peter, who is a builder by trade
0:09:14 > 0:09:17and also runs his own business.
0:09:17 > 0:09:21# It was the perfect match... #
0:09:21 > 0:09:24Sounds like a perfect match to me.
0:09:24 > 0:09:27I caught up with them both, back at the cottage, to find out more.
0:09:27 > 0:09:30- Sandra, Pete. Great to meet you both.- Hello. Pleased to meet you.
0:09:30 > 0:09:35- Hello, Martin.- Congratulations. A cute little place.- Yes, it is.
0:09:35 > 0:09:38- Tell me why you want to buy it. - Well, we've always loved the place.
0:09:38 > 0:09:41- We live next door. - Literally next door?- Yeah.
0:09:41 > 0:09:43Right next door, the farm next door.
0:09:43 > 0:09:46So we fell in love with this place years ago,
0:09:46 > 0:09:49and we said if it ever comes up for sale, we'd like to try and buy it.
0:09:49 > 0:09:53- And you did!- Yes!- We certainly did!
0:09:53 > 0:09:57- You must be slightly in a state of shock, really?- Very. Yes.
0:09:57 > 0:10:00I was a bit emotional at the auction after I bought it,
0:10:00 > 0:10:03because we really didn't think we'd get it.
0:10:03 > 0:10:04The couple have two daughters.
0:10:04 > 0:10:07They bought this place as an investment
0:10:07 > 0:10:10and possibly a future home for their elder daughter, Sammy Jo.
0:10:10 > 0:10:12They also have 11 horses
0:10:12 > 0:10:14and both daughters compete at national levels
0:10:14 > 0:10:17in Horse Of The Year competitions.
0:10:17 > 0:10:20So at least Sammy Jo won't have to travel far
0:10:20 > 0:10:22to get some riding practice.
0:10:22 > 0:10:24What are they planning to do here?
0:10:24 > 0:10:26We're going to completely renovate it, really.
0:10:26 > 0:10:29Because there is quite a lot of dry rot.
0:10:29 > 0:10:31So we must rake everything of that out.
0:10:31 > 0:10:33We're going to try and get the bathroom upstairs.
0:10:33 > 0:10:36Really just get it going, get it up and running.
0:10:36 > 0:10:37Get somebody renting it.
0:10:37 > 0:10:40But we'll do it in the style of the cottage.
0:10:42 > 0:10:45Sandra and Peter will be doing this renovation within building regs,
0:10:45 > 0:10:49so they don't have to go down the planning permission route.
0:10:49 > 0:10:52This will help save time, but what else are they planning to do?
0:10:52 > 0:10:57Well there's the old Yorkshire stove, we'll keep that in.
0:10:57 > 0:11:00- Put fireplaces in upstairs. - That's right.- Things like that.
0:11:01 > 0:11:05I'm sure they'll do a good job on this renovation project,
0:11:05 > 0:11:07while keeping the cottage's character intact.
0:11:07 > 0:11:11They have a fairly flexible £30,000 budget to do the work.
0:11:11 > 0:11:14What about timescale for sorting this out?
0:11:14 > 0:11:17We're going to turn it round in two months.
0:11:17 > 0:11:20But from work wise, my brother has gone and injured himself,
0:11:20 > 0:11:21I work with my brother all the time.
0:11:21 > 0:11:24So he's going to be off work for a couple of months,
0:11:24 > 0:11:27so we are going to say now, this is about three or four months to do.
0:11:27 > 0:11:28How inconsiderate of him(!)
0:11:28 > 0:11:31I can't believe he's done it, really!
0:11:32 > 0:11:37Pete's brother has broken his ankle, so let's hope he gets better soon.
0:11:40 > 0:11:41As the extra help
0:11:41 > 0:11:44will make this renovation a far less painful project.
0:11:45 > 0:11:49Listen, congratulations. I can't wait to see how you get on with it.
0:11:49 > 0:11:52- Thank you very much.- Good luck. - Thank you.- Thanks very much.
0:11:52 > 0:11:57Well, Sandra and Peter are clearly delighted to have got this place
0:11:57 > 0:11:59and who can blame them?
0:11:59 > 0:12:02However, I am a little concerned about what they're going to find
0:12:02 > 0:12:04once they start ripping up floorboards
0:12:04 > 0:12:06and taking down ceilings.
0:12:06 > 0:12:09The restoration is going to be interesting.
0:12:09 > 0:12:12You can see how they get on later in the show.
0:12:14 > 0:12:19Today I have travelled to the Valleys in South Wales,
0:12:19 > 0:12:21to a place called Penrhiwceiber.
0:12:21 > 0:12:24The locals call it Ceiber for short,
0:12:24 > 0:12:26and it's a former Welsh coalmining village.
0:12:26 > 0:12:28The local pit closed in 1986,
0:12:28 > 0:12:32and although the industry hasn't survived,
0:12:32 > 0:12:34remnants of the past live on.
0:12:34 > 0:12:39The Workmen's Hall and Institute was opened in the village in 1888,
0:12:39 > 0:12:42and remains one of the most prominent landmarks
0:12:42 > 0:12:43in Penrhiwceiber.
0:12:43 > 0:12:47# Into the valley... #
0:12:47 > 0:12:50It's not all historical buildings in this village.
0:12:50 > 0:12:55There are a whole host of amenities, and if you're running short of time,
0:12:55 > 0:12:58then this nearby clocktower is a useful and constant reminder.
0:12:58 > 0:13:04I'm here to see a three-storey, three-bedroom terraced house.
0:13:04 > 0:13:08Now, that all sounds quite sizeable. The guide price doesn't, though.
0:13:08 > 0:13:11It was set at just £22,000.
0:13:11 > 0:13:14Please do not adjust your sets, viewers.
0:13:14 > 0:13:20Because that is right, you heard me. Just £22,000!
0:13:20 > 0:13:23But, you can see these security shutters may put some people off.
0:13:23 > 0:13:24But I won't be deterred,
0:13:24 > 0:13:27you know what they say about books and covers.
0:13:27 > 0:13:28I'm going in.
0:13:28 > 0:13:33# You can't judge a book by looking at the cover... #
0:13:33 > 0:13:37I'd like this house to put a smile on my face
0:13:37 > 0:13:40on this damp and dreary day today.
0:13:40 > 0:13:42Well, so far, so good.
0:13:42 > 0:13:46It's not in hideous condition, I've certainly seen worse.
0:13:46 > 0:13:49So where is this other floor? Here's the door.
0:13:49 > 0:13:54You really don't expect to see that, look at it!
0:13:54 > 0:13:57That's a pretty steep staircase, actually.
0:13:57 > 0:13:59So downstairs you've obviously got a big space,
0:13:59 > 0:14:01I'm going to inspect that a little bit later on.
0:14:01 > 0:14:03This will be the lounge.
0:14:03 > 0:14:05You'd come in through the front door, into this room.
0:14:05 > 0:14:07Not a bad size.
0:14:07 > 0:14:10Really good point, we've got gas central heating here.
0:14:10 > 0:14:11We've got double glazing.
0:14:11 > 0:14:13And once those shutters come off
0:14:13 > 0:14:16you'll have loads of light coming in through this room.
0:14:16 > 0:14:18I like the fact somebody's got a bit jazzy
0:14:18 > 0:14:22and they've put a feature wall, some rather rosy wallpaper up.
0:14:22 > 0:14:24I quite like that.
0:14:24 > 0:14:27So this house really is taken to another level
0:14:27 > 0:14:30with that downstairs floor, if you excuse the pun.
0:14:30 > 0:14:33# Can you feel it? Can you feel it?
0:14:33 > 0:14:36# Feel another level Can you feel it?
0:14:36 > 0:14:38# Can you feel it? #
0:14:38 > 0:14:42So three levels at a guide price of £22,000.
0:14:42 > 0:14:45That's a lot of house for your money.
0:14:45 > 0:14:48On the ground floor, along with the living room is the bathroom.
0:14:48 > 0:14:50Which you'll probably want to update.
0:14:50 > 0:14:54Downstairs, on the lower ground floor you'll find the kitchen,
0:14:54 > 0:14:56which could definitely do with a new look.
0:14:56 > 0:14:59It's ripe for ripping out.
0:14:59 > 0:15:03There's also access to the back garden
0:15:03 > 0:15:06which is where you get a real sense of the size of this terrace
0:15:06 > 0:15:09with its three storeys.
0:15:09 > 0:15:12Time to ascend to the dizzying heights of the top floor.
0:15:12 > 0:15:16This certainly isn't going to be for everybody.
0:15:16 > 0:15:19Bathroom down there and as staircases go,
0:15:19 > 0:15:21my thighs are starting to burn!
0:15:21 > 0:15:23This is quite a steep staircase.
0:15:23 > 0:15:26You've got three very small bedrooms here
0:15:26 > 0:15:29so I'm gathering on the ground floor you've got the kitchen,
0:15:29 > 0:15:33you've got to walk right the way up to the top floor for the bedrooms.
0:15:33 > 0:15:35Not a bad size at all.
0:15:35 > 0:15:39This would be the master and once decorated, it could look quite nice.
0:15:39 > 0:15:42But £22,000 guide price?
0:15:42 > 0:15:44You can't really complain.
0:15:44 > 0:15:48What I really like is that little view out there.
0:15:48 > 0:15:51I know it's a rainy day, but when the sun shines,
0:15:51 > 0:15:53that will be a nice view.
0:15:53 > 0:15:57# Take it to the limit One more time... #
0:15:57 > 0:16:02Talking of views, what are the views of a local estate agent
0:16:02 > 0:16:06when it comes to this house, guided at £22,000?
0:16:06 > 0:16:08It's a good, large terraced property.
0:16:08 > 0:16:13Over three floors, but does have the benefit of modern central-heating,
0:16:13 > 0:16:17new double glazing and it would appear that it's been rewired.
0:16:19 > 0:16:21Could this be a good buy to let?
0:16:21 > 0:16:25If the property was renovated to a decent standard,
0:16:25 > 0:16:29they should hope to achieve £380 per calendar month.
0:16:30 > 0:16:32What about the resale value?
0:16:32 > 0:16:39When fully renovated, I would hope to achieve in the region of £55,000.
0:16:39 > 0:16:44This oddly configured house on three levels will not be for everyone
0:16:44 > 0:16:47and the amount of work that's needed here,
0:16:47 > 0:16:50it might put some people off, but one thing's for sure,
0:16:50 > 0:16:53whoever takes this on will have to be fit,
0:16:53 > 0:16:56because those stairs will definitely take their toll.
0:16:56 > 0:16:58Let's find out who fancied this challenge
0:16:58 > 0:17:00when it went under the hammer.
0:17:03 > 0:17:07Who's going to start me off with £25,000?
0:17:07 > 0:17:09£25,000? 20, 20, be quick.
0:17:09 > 0:17:13£20,000 I'm looking for. Thank you, £20,000 is bid.
0:17:13 > 0:17:1621, thank you.
0:17:16 > 0:17:1821, seated,
0:17:18 > 0:17:2022. 22,000 is bid.
0:17:20 > 0:17:2223, thank you.
0:17:22 > 0:17:2524, I'm looking for 25.
0:17:25 > 0:17:2825,000, thank you.
0:17:28 > 0:17:2925 is bid here, seated.
0:17:29 > 0:17:30Any advance on 25?
0:17:30 > 0:17:32I'll take half.
0:17:32 > 0:17:37Quick, I'm going sell.
0:17:37 > 0:17:40Any advance? 25 bid.
0:17:41 > 0:17:44In the foreground in a blue top was Henry
0:17:44 > 0:17:48with that successful bid of £25,000.
0:17:48 > 0:17:50He was at the auction with his dad
0:17:50 > 0:17:52who owns a property development business,
0:17:52 > 0:17:55investing in residential buy to lets.
0:17:55 > 0:17:58At 24 years of age, Henry is an apprentice at the business.
0:18:01 > 0:18:04Henley, lovely to meet you. Congratulations.
0:18:04 > 0:18:08Tell me about this property, what is the story behind it?
0:18:08 > 0:18:10Basically, our family have a property development company.
0:18:10 > 0:18:12We used to do industrial properties,
0:18:12 > 0:18:14but because of the current financial problems,
0:18:14 > 0:18:16we decided to move into residential
0:18:16 > 0:18:19and this is one of a few properties we have started with recently.
0:18:19 > 0:18:22What was it about this one that you thought was worth going for?
0:18:22 > 0:18:25They were actually three for sale on this street, all identical,
0:18:25 > 0:18:27with the same guide price.
0:18:27 > 0:18:29We ended up buying two of the three.
0:18:29 > 0:18:32We nearly got the third, but just missed out.
0:18:32 > 0:18:34Were you surprised to get it for the money you paid?
0:18:34 > 0:18:37It was probably the top end of what we were looking to go for,
0:18:37 > 0:18:40I don't think we would have gone any further.
0:18:40 > 0:18:42We missed out on the other one by £500 and decided not to.
0:18:42 > 0:18:46Do you think people might want to go for a layout change
0:18:46 > 0:18:49or do they predominantly keep them as they are?
0:18:49 > 0:18:52From the other properties we viewed, they're all exactly the same.
0:18:52 > 0:18:55People haven't bothered changing the layout.
0:18:55 > 0:18:57We're not going to bother either,
0:18:57 > 0:19:01we will just renovate it completely in the state that it is.
0:19:01 > 0:19:05The downstairs kitchen might not be everyone's cup of tea,
0:19:05 > 0:19:07but Henry's probably wise to leave it as it is
0:19:07 > 0:19:11so as the company's apprentice, so to speak,
0:19:11 > 0:19:13what is Henry's involvement here?
0:19:13 > 0:19:15My involvement was to source the properties.
0:19:15 > 0:19:19I viewed approximately 12 different houses, doing all the legal packs
0:19:19 > 0:19:21and looking for similar properties to compare
0:19:21 > 0:19:24to find out about rental incomes and market values
0:19:24 > 0:19:26once they had been renovated.
0:19:26 > 0:19:29I then went to the auction with my dad and bought two properties.
0:19:29 > 0:19:33How old were you when you first went to your auction,
0:19:33 > 0:19:35when you first dipped your toe into the property market?
0:19:35 > 0:19:39The first auction I went to was about a year ago so I'd have been 23.
0:19:39 > 0:19:41What is it that you enjoy about this,
0:19:41 > 0:19:43is it because it's a family-run business?
0:19:43 > 0:19:46Yeah, it's quite laid-back but we do things efficiently and quickly
0:19:46 > 0:19:50and I get on well with my dad and we enjoy working together.
0:19:52 > 0:19:55It's great that Henry gets on so well working with his dad.
0:19:55 > 0:19:58With a portfolio of 10 buy to lets,
0:19:58 > 0:20:02they've already sussed out the rental quotes for this terrace.
0:20:02 > 0:20:05They're hopeful of a yield around the 12-13% mark.
0:20:05 > 0:20:09Also on the company's books are two trusted builders who'll be doing the work.
0:20:09 > 0:20:13That means Henry doesn't have to factor their costs into his budget.
0:20:14 > 0:20:16So what are you going to do to turn this around?
0:20:16 > 0:20:20We'll have a brand-new kitchen, brand-new bathroom,
0:20:20 > 0:20:24carpets throughout. This one has a brand-new boiler already installed,
0:20:24 > 0:20:28so that's a bit of a saving for us, and just a general redecoration.
0:20:28 > 0:20:30So what's the budget for the work here?
0:20:30 > 0:20:34Because we have a workforce who are working for the company exclusively,
0:20:34 > 0:20:36our costs are very, very low.
0:20:36 > 0:20:38We can also get everything at wholesale price,
0:20:38 > 0:20:41so we're going to do the kitchen, the bathroom, the carpets
0:20:41 > 0:20:43and the full redecoration. We've budgeted £4,000.
0:20:43 > 0:20:46- What?! - It's very, very low.- That is...
0:20:46 > 0:20:48And do you think you will come in on budget?
0:20:48 > 0:20:50I'm sure you will, by the sounds of things.
0:20:50 > 0:20:53Yeah, we've bought many kitchens and bathroom,
0:20:53 > 0:20:55and it's not a problem.
0:20:55 > 0:20:59So, £4,000 is the budget. How quickly can you turn this place around?
0:20:59 > 0:21:02Um, we will do it in approximately three weeks, I would have thought.
0:21:02 > 0:21:06Henry, I like your style. £4,000, three weeks. I mean, who's over that?
0:21:06 > 0:21:09Who's going to be the person to be cracking the whip?
0:21:09 > 0:21:11Um, we don't really crack the whip.
0:21:11 > 0:21:14The guys are very, very good and efficient
0:21:14 > 0:21:16and they'll get the job done within the time.
0:21:16 > 0:21:18I'm very impressed by the way you work.
0:21:18 > 0:21:21I can't wait to see what this place is going to look like.
0:21:21 > 0:21:23- Thank you so much. It's been a pleasure meeting you.- Ta.
0:21:25 > 0:21:28Well, I'm certainly impressed by Henry's business acumen.
0:21:28 > 0:21:30He certainly seems to know what he's doing here.
0:21:30 > 0:21:35Plus, he's got a team of builders ready to begin renovations like that.
0:21:35 > 0:21:39But I do worry a £4,000 budget won't be enough to tackle the work here,
0:21:39 > 0:21:42and will he manage to do it all in just three weeks?
0:21:42 > 0:21:46You can find out how he gets on later in the programme.
0:21:47 > 0:21:50Coming up, I'm in seventh heaven in Devon.
0:21:50 > 0:21:53What more could you possibly want?
0:21:53 > 0:21:56Golden sand, sunshine, maybe an ice cream or two.
0:21:57 > 0:22:02In Mid Glamorgan, is Henry the UK's most trusting project manager?
0:22:02 > 0:22:04The guys have done all the work on their own.
0:22:04 > 0:22:07This is the first time I've seen it.
0:22:08 > 0:22:13But first, in Yorkshire, Sandra was in no doubt about her priority.
0:22:14 > 0:22:17We really wanted to get the bathroom upstairs.
0:22:22 > 0:22:26Back now to the peaceful village of Foston on the Wolds in Yorkshire,
0:22:26 > 0:22:30where property prospector Sandra and her builder husband Peter
0:22:30 > 0:22:35had bought this three-bed detached cottage at auction for £174,000.
0:22:35 > 0:22:39They live next door and hope this will eventually be home
0:22:39 > 0:22:40to their elder daughter Sammy-Jo.
0:22:43 > 0:22:45The cottage had rotten woodwork
0:22:45 > 0:22:49and a pretty rotten room layout to boot, but Peter had grand plans.
0:22:49 > 0:22:52We're going to completely renovate it, really,
0:22:52 > 0:22:54cos there's quite a lot of dry rot,
0:22:54 > 0:22:56so we must rake everything of that out.
0:22:56 > 0:23:01And we're going to try and get the bathroom upstairs and, really,
0:23:01 > 0:23:05just get it going - get it up and running, get somebody renting it.
0:23:05 > 0:23:08But we'll do it in the style of the cottage.
0:23:09 > 0:23:12The couple plan to do the renovation within building regulations,
0:23:12 > 0:23:15in three to four months.
0:23:15 > 0:23:18Well, five months later, we're back to see how they got on.
0:23:18 > 0:23:20MUSIC: "Good Feeling" by Flo Rida
0:23:26 > 0:23:28What a transformation!
0:23:28 > 0:23:31The back garden has been completely re-landscaped.
0:23:31 > 0:23:35There are new windows, doors and guttering.
0:23:35 > 0:23:38And that gorgeous old water pump has been brought back to life.
0:23:42 > 0:23:44And inside?
0:23:45 > 0:23:49There's a spacious, open-plan kitchen-dining area.
0:23:49 > 0:23:53The old bathroom's been removed to make space for this,
0:23:53 > 0:23:58and what was the pantry has been rebuilt as a utility area. Fantastic!
0:23:59 > 0:24:02So, what we did here - we took the bathroom out
0:24:02 > 0:24:06and put it upstairs, and so what we did then
0:24:06 > 0:24:09is decided we'd put the kitchen in and open this out.
0:24:09 > 0:24:13The pantry - which was over there - we took the walls out
0:24:13 > 0:24:17and put the walls back in, but we decided to lead it into a utility room.
0:24:17 > 0:24:20And I think it's set out all right. I think it's looking OK.
0:24:22 > 0:24:25Sandra and Peter have done an amazing job here.
0:24:25 > 0:24:29The kitchen was hand-built and painted by their joiner.
0:24:29 > 0:24:31Very impressive!
0:24:33 > 0:24:36The open-plan layout is fresh and modern,
0:24:36 > 0:24:41but they've been careful to retain the original character of the cottage...
0:24:43 > 0:24:45..from the restored quirky old cooker
0:24:45 > 0:24:48to the beautiful exposed beams in the ceiling.
0:24:48 > 0:24:51But let's see how they got on in the living room.
0:24:54 > 0:24:56The staircase has been moved 180 degrees
0:24:56 > 0:25:01and the flooring's been completely relaid, with dry rot eradicated.
0:25:01 > 0:25:04There's now insulation and underfloor heating -
0:25:04 > 0:25:08and as if that's not enough, there's a new fireplace, as well.
0:25:10 > 0:25:13The front door's been restored to its rightful position,
0:25:13 > 0:25:15on the front of the house.
0:25:15 > 0:25:18On entering, there's a WC straight ahead
0:25:18 > 0:25:21and the living room's to the right. It all makes much more sense.
0:25:21 > 0:25:26In this room, this is where the big dry rot problem was.
0:25:26 > 0:25:29What we had to do was take all of the dry rot out.
0:25:29 > 0:25:33In doing so, we could then get rid of the staircase
0:25:33 > 0:25:36and turn the staircase around, which then meant
0:25:36 > 0:25:39we could put a corridor along the back wall,
0:25:39 > 0:25:42so that we didn't have to walk through all of the bedrooms
0:25:42 > 0:25:44to get to another one.
0:25:44 > 0:25:48Let's head upstairs and check out that new configuration.
0:25:50 > 0:25:54The beautifully restored master bedroom is to the right of the stairwell.
0:25:56 > 0:26:01And to the left, a new corridor leads to the second double bedroom,
0:26:01 > 0:26:03tastefully decorated in neutral colours.
0:26:09 > 0:26:14Further down is the new bathroom, with contemporary fixtures and fittings.
0:26:17 > 0:26:22It's eaten space from the third bedroom, but that was a compromise worth making.
0:26:23 > 0:26:27We really wanted to get the bathroom upstairs
0:26:27 > 0:26:29and make a kitchen-dining area.
0:26:29 > 0:26:31That was the main priorities.
0:26:31 > 0:26:35We didn't want to lose the character of the cottage, did we?
0:26:35 > 0:26:38- No, not at all. - We wanted to keep... You know, keep it as a little cottage,
0:26:38 > 0:26:41but still try and revamp the whole place.
0:26:41 > 0:26:45If we'd gone down the planning permission route, it would've taken a lot longer -
0:26:45 > 0:26:48and longer means time and loss of rent,
0:26:48 > 0:26:52so we decided to do it all within building regulations.
0:26:53 > 0:26:54They've done a beautiful job,
0:26:54 > 0:27:00keeping the cottage feel of the property but bringing it right into line with modern living standards.
0:27:00 > 0:27:03It's pretty much been ripped apart and started again.
0:27:03 > 0:27:08One of the main reasons for this was that they discovered the root cause of the wood rot.
0:27:08 > 0:27:12The property was sitting in a pool of water!
0:27:12 > 0:27:16We found that there was a potted dyke had been bunged up for many, many years.
0:27:16 > 0:27:20So we had to get the digger in and it was a tree what had gone through the drain,
0:27:20 > 0:27:26so we lifted the tree, got the dyke moving again. Within hours, the water level had gone down.
0:27:27 > 0:27:31As for the dry rot, every piece of wood downstairs was removed
0:27:31 > 0:27:32and disposed of carefully.
0:27:32 > 0:27:35They sprayed for dry rot and woodworm
0:27:35 > 0:27:37and also put in a damp course.
0:27:37 > 0:27:41They've gone a month or so over their original timescale,
0:27:41 > 0:27:44but how did they get on with their £30,000 budget?
0:27:44 > 0:27:46What did it come out at, Peter?
0:27:46 > 0:27:4837,700.
0:27:51 > 0:27:54They plan to rent the cottage out for a year,
0:27:54 > 0:27:57to help recoup some of the renovation costs.
0:27:57 > 0:28:02But after that, their daughter Sammy-Jo will move from her mum and dad's farm next door
0:28:02 > 0:28:04and make this her new home.
0:28:05 > 0:28:08I love the whole cottage.
0:28:08 > 0:28:13It's so homely and I could just see myself living here, on my own,
0:28:13 > 0:28:16so close to home.
0:28:19 > 0:28:24The house cost £174,000 at auction
0:28:24 > 0:28:27and they spent 37,700 on it,
0:28:27 > 0:28:30making a total outlay just short of £212,000,
0:28:30 > 0:28:32plus the usual taxes and expenses.
0:28:34 > 0:28:37Do two local estate agents think it's money well spent?
0:28:39 > 0:28:44The finish, overall, is very nice. It's appealing to the eye.
0:28:44 > 0:28:46Again, it's a contemporary feel that we've got -
0:28:46 > 0:28:50a few nice oak doors, underfloor heating.
0:28:50 > 0:28:52It all works very well together.
0:28:52 > 0:28:54Yeah, it's a beautiful period cottage.
0:28:54 > 0:28:57It's been refurbished to a very high standard,
0:28:57 > 0:28:59and it's in a lovely, picturesque village.
0:28:59 > 0:29:02What could the place make on the rental market?
0:29:02 > 0:29:06I'm of the opinion that a property of this quality
0:29:06 > 0:29:09would rent for approximately £800 per calendar month.
0:29:09 > 0:29:13I would expect this to rent for £750 a calendar month.
0:29:13 > 0:29:16- Oh, well, that's what we thought. - That's right. Yeah, it's good, that.
0:29:16 > 0:29:18It's good. I think that's OK for here.
0:29:19 > 0:29:22That's a reasonable yield of between 4% and 4½%.
0:29:22 > 0:29:26But renting is a temporary measure here.
0:29:26 > 0:29:29Have they managed to increase its value on the resale market?
0:29:29 > 0:29:32Remember, they've spent just under £212,000.
0:29:34 > 0:29:36Resale value - at the moment,
0:29:36 > 0:29:39I would put a mid-price on it of £285,000.
0:29:39 > 0:29:44I think the resale value of this property would be approximately £275,000.
0:29:44 > 0:29:48I thought 275, to be perfectly honest - plus - but that's good.
0:29:48 > 0:29:50Yeah, that's OK.
0:29:50 > 0:29:54That's more like it! Those values would mean a potential pre-tax profit
0:29:54 > 0:29:58of between around £63,000 and £73,000,
0:29:58 > 0:30:00minus the usual selling expenses.
0:30:00 > 0:30:04I think they've done an amazing job here. What do they think?
0:30:04 > 0:30:07I think it's gone really well. I'm pleased with it.
0:30:07 > 0:30:12I'm pleased with the valuations, I'm pleased with the rental value, and I think it has gone OK.
0:30:12 > 0:30:15We'll carry on renovating properties. We enjoy it, don't we?
0:30:15 > 0:30:17We get on quite well together.
0:30:19 > 0:30:22# Round, round, get around I get around
0:30:22 > 0:30:24# Yeah, get around, round, round I get around
0:30:24 > 0:30:27- # I get around - Get around, round, round
0:30:27 > 0:30:28# I get around
0:30:28 > 0:30:31- # From town to town - Get around, round, round
0:30:31 > 0:30:33# I get around... #
0:30:34 > 0:30:36This is Exmouth in Devon.
0:30:36 > 0:30:38You know, seaside towns like this are hard to beat.
0:30:38 > 0:30:42What more could you possibly want? Golden sands, sunshine,
0:30:42 > 0:30:44maybe an ice cream or two,
0:30:44 > 0:30:47and, of course, some property bargains to bid on!
0:30:47 > 0:30:50# I'm gettin' bugged driving up and down this same old strip
0:30:50 > 0:30:54# I gotta find a new place where the kids are hip... #
0:30:54 > 0:30:57As tempting as it is to stay on the beach,
0:30:57 > 0:31:00I think I'd better get AROUND to business.
0:31:00 > 0:31:02# I get around... #
0:31:03 > 0:31:06Well, the property I'm here to see is a maisonette.
0:31:06 > 0:31:10Had a guide price of 90,000 quid. Two bedrooms. Let's take a look.
0:31:11 > 0:31:15The maisonette's on two levels, just behind and above a shop.
0:31:15 > 0:31:19It's on a busy commercial street, where parking's restricted,
0:31:19 > 0:31:24but you can park nearby, off the main street, so let's not be put off just yet.
0:31:24 > 0:31:26So, what's it like? Well, actually, at first glance,
0:31:26 > 0:31:29bigger than you might expect, although...
0:31:29 > 0:31:30Rather a strange door!
0:31:30 > 0:31:32Doesn't seem to work very well.
0:31:32 > 0:31:34Stairs up to some rooms there
0:31:34 > 0:31:37and then down this corridor to the main living area downstairs.
0:31:37 > 0:31:41This bit here, described as a dining room. Well, you know what?
0:31:41 > 0:31:43Yes, it could be. Er...
0:31:43 > 0:31:47and somebody's tried to be a bit clever by building this thing here.
0:31:47 > 0:31:49Got a bit of a wood-burning stove there.
0:31:49 > 0:31:53I don't think this works cos what it does is it separates this area from the kitchen.
0:31:53 > 0:31:56Now, the kitchen itself is pretty small,
0:31:56 > 0:31:58so why not try and take this out?
0:31:58 > 0:32:02Bit of a big job, cos I think that's probably a chimney breast, so a bit of work required,
0:32:02 > 0:32:05but it'd definitely be worth it cos then you'd have this huge, great open-plan area,
0:32:05 > 0:32:08which immediately gives it that feeling of space.
0:32:08 > 0:32:11Which is quite surprising for a maisonette.
0:32:11 > 0:32:13All in all, a very good start.
0:32:14 > 0:32:16# Pretty good
0:32:16 > 0:32:17# Not bad
0:32:17 > 0:32:20# I can't complain, yeah... #
0:32:20 > 0:32:24The central heating and radiators look in good nick,
0:32:24 > 0:32:26but you might want to check the condition of the wiring.
0:32:26 > 0:32:28Removing that chimney is a big job.
0:32:28 > 0:32:32Whether it survives or not will depend on budget
0:32:32 > 0:32:34and whether the plan is to live here or rent it out.
0:32:34 > 0:32:36Time to head upstairs.
0:32:38 > 0:32:41Now, of course, an inevitable problem with split-level living
0:32:41 > 0:32:45is the kitchen's downstairs and the living room's up here, so you're struggling upstairs
0:32:45 > 0:32:49with your spaghetti Bolognese in one hand and your glass of red wine in the other.
0:32:49 > 0:32:54Not exactly ideal, but forget all that, because up here - a stunning amount of space.
0:32:54 > 0:32:55Bedroom at the end.
0:32:55 > 0:32:58You've got a bathroom and loo, and a separate loo, as well.
0:32:58 > 0:33:01Nice landing. Huge great ceilings.
0:33:01 > 0:33:06Another bedroom there, and up those ladders into the attic,
0:33:06 > 0:33:08where I think there's potential for yet even more conversion.
0:33:08 > 0:33:13Through on into this room, which I absolutely love.
0:33:13 > 0:33:15You've got this big bay window.
0:33:15 > 0:33:19OK, you're on the high street here, so there might be a bit of noise from traffic,
0:33:19 > 0:33:21but lots of light coming in here. You've got the open fire.
0:33:21 > 0:33:25This would make an absolutely gorgeous living area and, all in all,
0:33:25 > 0:33:28it just doesn't feel like a maisonette.
0:33:28 > 0:33:32It's got more space than some houses I've been in!
0:33:32 > 0:33:36# Bigger, brighter, better
0:33:36 > 0:33:39# And I was sold for ever... #
0:33:39 > 0:33:42The decor and carpets are a bit tired and dated,
0:33:42 > 0:33:47but that's easy to rectify. There are surface cracks here and there,
0:33:47 > 0:33:50and one worrying one under the bay window in the living room.
0:33:50 > 0:33:53It's possible they're caused by the excess weight
0:33:53 > 0:33:56of that unauthorised loft conversion above.
0:33:56 > 0:33:59So that'll need to be checked out by experts.
0:33:59 > 0:34:03But this maisonette is big, so since I'm banging on about all this space,
0:34:03 > 0:34:05what about other development opportunities?
0:34:07 > 0:34:10Well, at the rear of the property, there's this courtyard.
0:34:10 > 0:34:12Obviously, it could do with a bit of a clear out,
0:34:12 > 0:34:16but most importantly, and crucially, it has this -
0:34:16 > 0:34:19a separate access to the rear of the property.
0:34:19 > 0:34:23Why is that important? Well, it opens up the option of converting this
0:34:23 > 0:34:25possibly into two flats.
0:34:25 > 0:34:29Maybe convert the attic into another bedroom, giving you a two-bedroom flat upstairs,
0:34:29 > 0:34:31one bedroom flat downstairs. It's going to cost you a bit more,
0:34:31 > 0:34:36you'll have to convince the planners, but you can certainly increase your profits, as well.
0:34:36 > 0:34:37# Money, money, money
0:34:37 > 0:34:39# Must be funny
0:34:39 > 0:34:42# In a rich man's world. #
0:34:42 > 0:34:45With a guide price of £90,000,
0:34:45 > 0:34:48let's think this potential money-spinner through a little more.
0:34:48 > 0:34:52Splitting it into two flats means the one-bed on the ground floor
0:34:52 > 0:34:54would be pretty tiny,
0:34:54 > 0:34:58but what about extending outwards into the courtyard, where the lean-to is?
0:34:58 > 0:35:01In theory, that could be done.
0:35:01 > 0:35:04But before I get carried away, with the costs involved,
0:35:04 > 0:35:06would it be worth the extra effort?
0:35:06 > 0:35:08We asked a local estate agent to check the place out.
0:35:08 > 0:35:10# It's a rich man's world. #
0:35:12 > 0:35:15My first impressions of the maisonette is it's a very good size
0:35:15 > 0:35:18and it does have the advantage of outside space,
0:35:18 > 0:35:21which is quite unusual for maisonettes above shops
0:35:21 > 0:35:23in this particular area.
0:35:24 > 0:35:28What could the property sell for after being refurbished as it is?
0:35:28 > 0:35:31If the property were to be kept as it is,
0:35:31 > 0:35:34with two-bedroom accommodation, but renovated,
0:35:34 > 0:35:37I would recommend an asking price of £145,000.
0:35:38 > 0:35:40And rental?
0:35:40 > 0:35:42As a two-bedroom maisonette, the rental value
0:35:42 > 0:35:45would be £650 per calendar month.
0:35:46 > 0:35:50If converted into a three-bed, what could it sell for?
0:35:50 > 0:35:54It should achieve in the region of £150,000.
0:35:54 > 0:35:56And the rental for a three-bed?
0:35:56 > 0:36:00Rental value would be around £700 per calendar month.
0:36:00 > 0:36:05The estate agent also said that if the property was split into two separate flats,
0:36:05 > 0:36:08as a one-bed, the ground floor could sell for £100,000,
0:36:08 > 0:36:15whilst as a two-bed, the first floor could sell for 125,000.
0:36:15 > 0:36:19So, subject to planning, it could be worth the extra costs and work involved.
0:36:19 > 0:36:22Well, I like this maisonette.
0:36:22 > 0:36:25It's got options galore for the adventurous developer.
0:36:25 > 0:36:28Properties above shops aren't everyone's cup of tea
0:36:28 > 0:36:32but with this much space, I think it was a great one to go for at the auction.
0:36:36 > 0:36:39It's a two-bedroomed maisonette. Good size.
0:36:39 > 0:36:41How about 85, straight in?
0:36:41 > 0:36:4285.
0:36:42 > 0:36:46How about 80? Nobody start me at 80?
0:36:46 > 0:36:48No? OK, that's fine. Come and see us afterwards if you'd like...
0:36:48 > 0:36:49Oh, 80? Well done, you, sir.
0:36:49 > 0:36:5380, I've got. At 80, at 80. You thought I was joking.
0:36:53 > 0:36:5582. 82.
0:36:55 > 0:36:5884. 86?
0:36:58 > 0:37:0288. Guide? 90.
0:37:02 > 0:37:05Lives up to its name at 90. 92.
0:37:05 > 0:37:0894. 94? 96.
0:37:08 > 0:37:11Now, think about it. What's his limit? Could it be 100?
0:37:11 > 0:37:14100. 102.
0:37:14 > 0:37:18103. And four.
0:37:18 > 0:37:21Yes, five? OK, I will. Six.
0:37:21 > 0:37:24106 on my right hand side once.
0:37:24 > 0:37:27At 106 on my right hand side twice.
0:37:27 > 0:37:29You are out. At 106.
0:37:29 > 0:37:31You're sure and done? It's your last chance. Here we go.
0:37:31 > 0:37:33At 106 and done. Well done.
0:37:33 > 0:37:39The final winning bid of £106,000 was made by Ian and Philippa.
0:37:39 > 0:37:41They live and work in Exmouth,
0:37:41 > 0:37:43running their own passenger-boat business.
0:37:43 > 0:37:47They also have a small sideline venture developing properties.
0:37:47 > 0:37:51I met them back at the maisonette to find out more.
0:37:51 > 0:37:54- Philippa, Ian, lovely to meet you both.- Thank you.- Hello.
0:37:54 > 0:37:59Congratulations. So, why did you want to buy this pretty stonking maisonette?
0:37:59 > 0:38:04Well, predominantly for, er, one of our staff,
0:38:04 > 0:38:09- and for work for us to do when we have quiet times.- Right.
0:38:09 > 0:38:12It's a project for about a year
0:38:12 > 0:38:17and when we get an odd day here and there to do some ripping about, we'll come and do it.
0:38:17 > 0:38:20So, tell me more about buying for your employee.
0:38:20 > 0:38:23We've got one of our members of staff been with us for about 15 years now,
0:38:23 > 0:38:26and he's just paying lots of rent all the time.
0:38:26 > 0:38:28We've done it with one of our other staff
0:38:28 > 0:38:32and he's getting a cheap rent and we then get loyalty back, as well.
0:38:32 > 0:38:34So, what's your business?
0:38:34 > 0:38:36We've got a passenger-boat business here in Exmouth
0:38:36 > 0:38:40- and so we do boat trips, excursions, functions.- Oh, great!
0:38:40 > 0:38:43It's nice but obviously, every now and again,
0:38:43 > 0:38:46we have downtime and we can employ staff all year round, then.
0:38:46 > 0:38:50MUSIC: "Step Into My Office, Baby" by Belle & Sebastian
0:38:50 > 0:38:51It certainly makes sense.
0:38:51 > 0:38:54During the quiet business times, the staff can keep busy,
0:38:54 > 0:38:57helping the couple refurbish the properties they buy as a sideline.
0:38:57 > 0:39:01And there's a chance of renting them out at a reduced rate afterwards,
0:39:01 > 0:39:03as is the plan with this one.
0:39:03 > 0:39:08One of their employees, Kevin, is already lined up to move in here.
0:39:10 > 0:39:14- So, why this property particularly? - It's based right in the town centre.
0:39:14 > 0:39:16It's really easy just to get in and out.
0:39:16 > 0:39:20There's no real parking here but that's not really a problem.
0:39:21 > 0:39:24That's because their business is only a short stroll away.
0:39:24 > 0:39:27Time to get down to the nitty-gritty now.
0:39:27 > 0:39:30Tell me what you're going to do to sort the place out, exactly.
0:39:30 > 0:39:32All the ceilings are coming down.
0:39:32 > 0:39:36Where they've done the loft conversion, they've put Velux windows on the back.
0:39:36 > 0:39:39We want to put a Velux window on the front, as well.
0:39:39 > 0:39:42They're sometimes funny about putting Veluxes on the front elevation.
0:39:42 > 0:39:45There's lots here. There's several dormer windows,
0:39:45 > 0:39:48but we're not planning on putting a dormer window in.
0:39:48 > 0:39:52It's a very big space up there at the moment, but we just want to get rid of some of the weight
0:39:52 > 0:39:55and put a proper staircase in so it's all accessed a bit easier.
0:39:56 > 0:39:59Making the most of the attic space by doing a legal conversion
0:39:59 > 0:40:02is the sensible way forward.
0:40:02 > 0:40:06They'll consult with the experts to be sure it complies with building regs,
0:40:06 > 0:40:11and get any planning permission required from the local authority. Those cracks in the living room
0:40:11 > 0:40:15should be enough to persuade anyone why it's important to stick to the rules.
0:40:15 > 0:40:19- And would you be doing a lot of the work yourselves? - All of the work ourselves.
0:40:19 > 0:40:24- All?- Yes.- All. Friends, as well. We've got friends that are plasterers and electricians,
0:40:24 > 0:40:29but predominantly staff, so labour costs are down.
0:40:29 > 0:40:31We've got to pay our staff to work anyway, so we might as well pay them
0:40:31 > 0:40:36to be doing painting and decorating here, as opposed to making cups of tea on a boat.
0:40:36 > 0:40:39And presumably the chappie who is moving in here must be delighted.
0:40:39 > 0:40:42Absolutely over the moon. It's so handy.
0:40:42 > 0:40:46He can walk to work in minutes and it's right here,
0:40:46 > 0:40:48everything he'd ever want on his doorstep.
0:40:50 > 0:40:52So, a great team effort, then,
0:40:52 > 0:40:55with trades coming in to sort the wiring and plumbing.
0:40:56 > 0:40:59But have they thought about turning this place into two separate flats?
0:41:01 > 0:41:04We have looked at that, but...
0:41:04 > 0:41:07There's lots and lots of small flats in this town, to be fair,
0:41:07 > 0:41:11and we want something a little bit bigger for more long-term.
0:41:11 > 0:41:14So, any idea how much it's going to cost to do what you want to do?
0:41:14 > 0:41:18Forgetting labour - we're going to be doing most of it ourselves -
0:41:18 > 0:41:23- so we anticipate the extras will be about £5,000.- And timescales?
0:41:23 > 0:41:27We're going to start it when we have a few odd days here and there
0:41:27 > 0:41:31and then, from then, it's going to be about three, four months.
0:41:31 > 0:41:33Their employee, Kevin,
0:41:33 > 0:41:38will move straight into the flat, living on the ground floor, while work starts upstairs.
0:41:38 > 0:41:41What's next for Ian and Philippa?
0:41:41 > 0:41:44We'll be finishing this before we go on to anything else and...
0:41:44 > 0:41:48Yeah, it's a project, like I say, long term.
0:41:48 > 0:41:51We've done it before and it's worked well
0:41:51 > 0:41:55and no doubt we'll do some more properties, as long as the price is still right.
0:41:55 > 0:41:57Well, congratulations. Well done.
0:41:57 > 0:42:00- And we look forward to seeing how you get on.- Lovely. Thank you.
0:42:02 > 0:42:03Well, how about that, then?
0:42:03 > 0:42:06Philippa and Ian must be pretty perfect employers
0:42:06 > 0:42:09and Kevin, their employee, not surprisingly, delighted.
0:42:09 > 0:42:13Still, he'll never have an excuse to be late for work again!
0:42:13 > 0:42:15Find out how they get on later in the show.
0:42:18 > 0:42:22It's been many months now since we last saw those properties.
0:42:22 > 0:42:26So, have the renovations been plain sailing or a bumpy ride?
0:42:26 > 0:42:28Let's go back and find out.
0:42:33 > 0:42:36Back now to Penrhiwceiber in Mid Glamorgan,
0:42:36 > 0:42:37where earlier we met Henry.
0:42:39 > 0:42:43He bought this three-bed terraced house at auction for 25,000.
0:42:45 > 0:42:48Purchased with his father as part of the family's property investing business,
0:42:48 > 0:42:5124-year-old Henry was learning the ropes
0:42:51 > 0:42:53and doing a great job.
0:42:53 > 0:42:55When it came to this three-storey property,
0:42:55 > 0:42:59he had two builders in place and renovation plans sorted.
0:42:59 > 0:43:03We'll have a brand-new kitchen, a brand-new bathroom.
0:43:03 > 0:43:04Carpets throughout.
0:43:04 > 0:43:08This one has a brand-new boiler already installed,
0:43:08 > 0:43:11so that's a bit of a saving for us, and just a general redecoration.
0:43:14 > 0:43:18With a budget of only 4,000 and a timescale of three weeks,
0:43:18 > 0:43:23we returned two months later to see if Henry managed to keep his team on track.
0:43:27 > 0:43:31And there's an instant facelift to the property exterior.
0:43:31 > 0:43:36Those protective metal boards have been removed, to reveal the double glazed windows below.
0:43:36 > 0:43:38There's no visible change at the back,
0:43:38 > 0:43:41but it inside where the biggest transformation has occurred,
0:43:41 > 0:43:45starting with the lower ground floor and that rather shabby kitchen.
0:43:54 > 0:43:57Well, as you can see, we fitted a brand-new kitchen to the property.
0:43:57 > 0:44:00It's not the most expensive kitchen about, but, er...
0:44:00 > 0:44:02It's pretty basic, but it looks pretty good, I think.
0:44:02 > 0:44:06We've left the relevant spaces for fridge, freezer, dishwasher and so on.
0:44:06 > 0:44:08I think, all in all, it cost us about £800,
0:44:08 > 0:44:10which is pretty good in anybody's eyes.
0:44:10 > 0:44:13We're pretty happy with it.
0:44:13 > 0:44:18With another two floors to go, I bet Henry's workforce had no time to stop.
0:44:19 > 0:44:20# Don't stop
0:44:20 > 0:44:23# Thinking about tomorrow
0:44:23 > 0:44:25# Don't stop
0:44:25 > 0:44:27# It'll soon be here
0:44:27 > 0:44:31# It'll be here, better than before
0:44:31 > 0:44:33# Yesterday's gone
0:44:33 > 0:44:35# Yesterday's gone. #
0:44:35 > 0:44:39The layout's still the same, with three bedrooms on the first floor
0:44:39 > 0:44:43and a refitted and decorated bathroom and living room on the ground floor.
0:44:43 > 0:44:47That means there's still quite a hike to the kitchen on the lower ground,
0:44:47 > 0:44:52but Henry wasn't convinced it was worth changing the configuration.
0:44:52 > 0:44:55We didn't consider changing the layout of the property at all.
0:44:55 > 0:44:57It probably would have taken too long and been too costly,
0:44:57 > 0:45:01so we just stuck with the layout at the moment, with the kitchen downstairs.
0:45:02 > 0:45:05The renovation was carried out by Henry's workforce,
0:45:05 > 0:45:07employed by his family business.
0:45:07 > 0:45:10How much project managing did Henry have to do?
0:45:10 > 0:45:12Since we bought the property,
0:45:12 > 0:45:15the only time I've been back here was to remove the shutters off the windows.
0:45:15 > 0:45:18Other than that, the guys have done all the work on their own,
0:45:18 > 0:45:21and this is the first time I've seen it. I think they've done a brilliant job.
0:45:21 > 0:45:25It's all done to a reasonably high standard. Well, a very high standard.
0:45:25 > 0:45:27They did it quickly and efficiently.
0:45:27 > 0:45:30We don't think it's risky to leave the guys to do the work on their own.
0:45:30 > 0:45:35They're very experienced. They've worked for us for many years and are top-quality workmen.
0:45:38 > 0:45:43It seems like this was an easy renovation for Henry, but is there a secret to his success?
0:45:44 > 0:45:47I'd like to think the reason that the job was done easy
0:45:47 > 0:45:51was because of a solid pre-auction report and investigation done into the property.
0:45:53 > 0:45:57You just can't beat a bit of pre-auction research, Henry! Well said.
0:45:57 > 0:45:59But what about his deadline and budget?
0:45:59 > 0:46:03Yeah, we did originally time it for three weeks
0:46:03 > 0:46:07and I believe they did it in exactly three weeks, so it was perfect.
0:46:07 > 0:46:12Originally, we budgeted for £4,000. Having looked at the final figures of what we've done,
0:46:12 > 0:46:16we've come in under budget, which we're very happy about, at about £2,900.
0:46:16 > 0:46:19Obviously, because it's not the most expensive of properties,
0:46:19 > 0:46:22we don't chuck in your expensive £10,000 kitchens and so on.
0:46:22 > 0:46:25We do it to a standard that's sufficient.
0:46:26 > 0:46:29Henry certainly doesn't mess about when it comes to property developing.
0:46:29 > 0:46:34He spent 25,000 on this purchase and 2,900 on the renovation.
0:46:34 > 0:46:40Adding fees, Henry says his total outlay is £30,200.
0:46:40 > 0:46:42That doesn't include any labour costs,
0:46:42 > 0:46:45as the builders are employed through the company.
0:46:48 > 0:46:50Has he invested his money wisely?
0:46:50 > 0:46:54Let's see what two local estate agents think.
0:46:55 > 0:46:58The work that has been carried out so far to the property
0:46:58 > 0:47:00has brought it up to a much more modern standard
0:47:00 > 0:47:01since our first visit.
0:47:01 > 0:47:05Aesthetically, it's very different to the first house we came to see.
0:47:05 > 0:47:08Bathroom has been updated to a basic standard.
0:47:08 > 0:47:11For the rental market, enough has been done with the bathroom.
0:47:12 > 0:47:15The kitchen is very nice.
0:47:15 > 0:47:17It's on the lower ground floor,
0:47:17 > 0:47:20which opens onto the garden.
0:47:20 > 0:47:23But it is quite well fitted for the type of property.
0:47:24 > 0:47:27First impressions are not too bad, then, but let's talk numbers.
0:47:27 > 0:47:32How much value has Henry added? Remember, he spent just over 30,000.
0:47:32 > 0:47:35If we were asked to put the property up for sale,
0:47:35 > 0:47:38in the current market, we would expect it to achieve
0:47:38 > 0:47:40between £35,000 and £40,000.
0:47:40 > 0:47:42I would estimate the value of this property
0:47:42 > 0:47:45to be in the region of £40,000 to £50,000.
0:47:45 > 0:47:49Well, it seems a lot lower than the price they gave the first time they came to see it.
0:47:49 > 0:47:51And also, we've had it valued twice now,
0:47:51 > 0:47:55most recently at about £55,000 to £60,000,
0:47:55 > 0:47:58by local agents, so I'm a little bit disappointed in that.
0:48:01 > 0:48:04Well, if Henry does achieve the figures he's been quoted,
0:48:04 > 0:48:09he could be in line for a gross profit between around £25,000 and £30,000.
0:48:09 > 0:48:12Of course, this was always intended for the rental market,
0:48:12 > 0:48:15and to be added to their fast-growing portfolio.
0:48:15 > 0:48:19Resale is hard in this area, making rental the way to go,
0:48:19 > 0:48:22but what could it make?
0:48:22 > 0:48:24We would expect it to achieve
0:48:24 > 0:48:27between £375 and £400 per calendar month.
0:48:27 > 0:48:29This property could now achieve
0:48:29 > 0:48:31in the region of £350 per calendar month.
0:48:31 > 0:48:34Yeah, the rental values are about where we were looking at.
0:48:34 > 0:48:38Before we bought the property, we were aiming for 350,
0:48:38 > 0:48:41but we've been since told 400 is more acceptable.
0:48:42 > 0:48:47Well, the rental valuations speak volumes and confirm that this is best let out,
0:48:47 > 0:48:52as Henry could be seeing a potential yield of around the 14% to 16% mark.
0:48:52 > 0:48:55He must be pleased with how all this has gone.
0:48:56 > 0:48:59Er, we're pretty happy with the house, to be honest with you.
0:48:59 > 0:49:03It'll provide us with a very good yield of about 16%, hopefully,
0:49:03 > 0:49:07and it will be a good contribution to our portfolio.
0:49:09 > 0:49:12So, with the property renovated and on the rental market,
0:49:12 > 0:49:15what does Henry hope for in the future?
0:49:15 > 0:49:16In 20 years' time,
0:49:16 > 0:49:19hopefully I'll be retired on a beach somewhere.
0:49:19 > 0:49:23But before then, I'd like to be working alongside my father,
0:49:23 > 0:49:25who runs the property company at the moment,
0:49:25 > 0:49:27for a good few years to come.
0:49:29 > 0:49:33Back down to Exmouth in Devon,
0:49:33 > 0:49:35where earlier we met couple Ian and Philippa.
0:49:35 > 0:49:38They bought this spacious two-bedroom, two-storey maisonette above a shop
0:49:38 > 0:49:42for £106,000 at auction.
0:49:42 > 0:49:47The couple live and work locally, running their own passenger-boat business.
0:49:47 > 0:49:49They bought this maisonette not only as an investment
0:49:49 > 0:49:54but to be rented out to one of their employees. They had big plans for the property,
0:49:54 > 0:49:59including getting planning permission to make the attic a livable space.
0:49:59 > 0:50:02They were going to do all the work themselves,
0:50:02 > 0:50:05with the help of friends in the trade and their own employees.
0:50:05 > 0:50:09But they weren't interested in converting the property into two flats.
0:50:09 > 0:50:12We have looked at that, er, but...
0:50:12 > 0:50:15There's lots and lots of small flats in this town, to be fair,
0:50:15 > 0:50:19and we want something a little bit bigger for more long-term.
0:50:19 > 0:50:21They had a budget of £5,000
0:50:21 > 0:50:24and a timescale of three to four months.
0:50:24 > 0:50:26Well, we're back 18 months later
0:50:26 > 0:50:30and it seems the couple completely changed their original plan.
0:50:30 > 0:50:31# I think a change
0:50:31 > 0:50:34# A change would do you good... #
0:50:35 > 0:50:40In fact, they decided they WOULD maximise the property's potential
0:50:40 > 0:50:43by creating not two, but three, flats!
0:50:43 > 0:50:46A split-level two-bedroom flat in the loft space...
0:50:49 > 0:50:52..and down into the first floor to a living area.
0:50:52 > 0:50:54# A change
0:50:54 > 0:50:56# A change would do you good... #
0:50:56 > 0:51:00A one bed on the first floor at the rear of the property...
0:51:03 > 0:51:06..and another one-bedroom flat on the ground floor.
0:51:06 > 0:51:08This one is still to be finished.
0:51:08 > 0:51:13The chimney breast in the former kitchen has been completely removed,
0:51:13 > 0:51:16gaining space both here and in the flat above.
0:51:17 > 0:51:19As well as the kitchen and living area,
0:51:19 > 0:51:23there will be a bathroom and bedroom in this studio-style apartment.
0:51:23 > 0:51:25To see how it'll look once it's finished,
0:51:25 > 0:51:29let's head upstairs to the other one-bed flat at the rear.
0:51:35 > 0:51:39This is the new kitchen, on the middle flat.
0:51:39 > 0:51:40It's going to be a one-bedroom flat.
0:51:40 > 0:51:45There was a real big chimney breast here, right in the centre, which we've now taken down.
0:51:45 > 0:51:47Opened the whole space up.
0:51:47 > 0:51:49The lounge area is going to be here
0:51:49 > 0:51:51and then we've made a nice balcony out here.
0:51:51 > 0:51:54We've still got some finishing touches to do.
0:51:54 > 0:51:57We got a nice stainless-steel rail to go across the back,
0:51:57 > 0:52:00and you can also access it from the bedroom, as well, at the other end of the balcony.
0:52:02 > 0:52:04At the front of the property, also on the first floor,
0:52:04 > 0:52:06is flat number three.
0:52:06 > 0:52:11The original bay fronted lounge is now the kitchen-living area
0:52:11 > 0:52:14and up the brand-new staircase to the legally converted loft space
0:52:14 > 0:52:18are now two bedrooms, with a contemporary bathroom.
0:52:18 > 0:52:21New skylights have been installed to flood the rooms with light.
0:52:21 > 0:52:25All three flats have been rewired, central heating installed
0:52:25 > 0:52:28and new flooring put in throughout.
0:52:28 > 0:52:34Outside, the walls have been rendered with new guttering, windows and doors.
0:52:34 > 0:52:37The conversion took much longer due to the extra planning and work needed,
0:52:37 > 0:52:40but there was another reason, too.
0:52:40 > 0:52:44Unfortunately, I haven't been that well, health-wise, either.
0:52:44 > 0:52:49Since you first came round doing the filming, I got cancer, unfortunately,
0:52:49 > 0:52:51so that's a year ago now.
0:52:51 > 0:52:54I got the all-clear on that and other items of health
0:52:54 > 0:52:58take your priorities from doing some work, occasionally.
0:52:58 > 0:52:59I'm so glad Ian is better now
0:52:59 > 0:53:03and had the support of friends, family and also his staff,
0:53:03 > 0:53:05to get the renovation to this point.
0:53:05 > 0:53:08They've done a lot of work for me
0:53:08 > 0:53:11and things like this were just my hobby, more than anything else,
0:53:11 > 0:53:15so, yes, it's got all put to one side and we've just come back,
0:53:15 > 0:53:17and doing it when we've got time to do it.
0:53:19 > 0:53:23Converting this place into three separate flats was no easy task.
0:53:24 > 0:53:28It was a quick decision to make it into three units,
0:53:28 > 0:53:32but a long process actually doing the legal work,
0:53:32 > 0:53:34because the more units you've got,
0:53:34 > 0:53:38it was all the more money involved, and more time,
0:53:38 > 0:53:43cos you have to get more permissions from different authorities
0:53:43 > 0:53:49and the people who actually own the property and next-door neighbours for sound and noise and...
0:53:49 > 0:53:52Yeah, lots of different paperwork.
0:53:53 > 0:53:56How did Ian fare with his budget?
0:53:56 > 0:53:59We ended up spending £60,000,
0:53:59 > 0:54:03but a lot of the bigger expenses we weren't budgeting for
0:54:03 > 0:54:05because we didn't plan to do it.
0:54:05 > 0:54:09Obviously, to be able to convert it into three properties,
0:54:09 > 0:54:11I had to buy the freehold, which was extra money.
0:54:11 > 0:54:16Then whilst we bought the freehold, the person who owned the freehold also owned the shop downstairs.
0:54:16 > 0:54:19I agreed to buy that and paid a deposit for that, as well.
0:54:20 > 0:54:22Ian's spent a total of £191,000,
0:54:22 > 0:54:27including the £106,000 purchase price,
0:54:27 > 0:54:33£60,000 on the renovation and another £25,000 buying the freehold.
0:54:33 > 0:54:39Ian's employee, Kevin, is already renting the split-level flat. The other two are still free.
0:54:39 > 0:54:43What level of rent should Ian charge for them?
0:54:43 > 0:54:45Time to hear from two local estate agents.
0:54:46 > 0:54:51Very impressed with the standard and style of the work. Thoughtful use of the space.
0:54:51 > 0:54:54I like the quality of the finish. They say it's in the detail
0:54:54 > 0:54:57and the quality of the kitchen's and bathroom's very impressive
0:54:57 > 0:54:58for this kind of conversion.
0:54:58 > 0:55:01I like the maisonette best. It's got a good cottagey feel to it.
0:55:01 > 0:55:03It feels a good deal of space.
0:55:03 > 0:55:07The bay window at the front makes it nice and bright and airy.
0:55:07 > 0:55:11What kind of resale value could the flats achieve?
0:55:11 > 0:55:14In terms of resale value, the kind of figures that I'd be looking at
0:55:14 > 0:55:18for the one-bedroom unit would be somewhere around about 90,000.
0:55:18 > 0:55:20I think the two-bedroom, perhaps,
0:55:20 > 0:55:25would be pushing up towards the stamp-duty limit at around 125,000.
0:55:25 > 0:55:26For the one-bedroom properties,
0:55:26 > 0:55:31a figure somewhere in the region of £85,000 to £90,000 could be achievable.
0:55:31 > 0:55:32For the maisonette,
0:55:32 > 0:55:36I think a figure somewhere in the region of £125,000 to £135,000.
0:55:37 > 0:55:44That's a potential total gross profit of between £104,000 and £119,000.
0:55:44 > 0:55:47Yeah, that's what we were expecting, really,
0:55:47 > 0:55:50but, at the moment, for the amount of money that's been invested into it,
0:55:50 > 0:55:54I think it's better to rent them out for a while.
0:55:54 > 0:55:56What could he achieve rental-wise?
0:55:56 > 0:55:59For rental, per calendar month, I would anticipate
0:55:59 > 0:56:03the one-bedrooms achieving somewhere around about £550.
0:56:03 > 0:56:06The two-bedroom, perhaps somewhere around about £650.
0:56:06 > 0:56:09The one-bedroom flats would achieve a price
0:56:09 > 0:56:11in the region of £525 per calendar month.
0:56:11 > 0:56:16The maisonette would achieve a price somewhere in the region of £625 per calendar month.
0:56:16 > 0:56:18That's about what we were expecting it to be.
0:56:18 > 0:56:21Obviously, Kevin's living here, anyway, in one of them,
0:56:21 > 0:56:23so he's having it quite a bit cheaper than that,
0:56:23 > 0:56:26but I prefer to have probably slightly less,
0:56:26 > 0:56:29but a tenant that's going to be here for a long time, really.
0:56:29 > 0:56:32I don't want to be decorating them every six months.
0:56:34 > 0:56:40Quite right. And with a potential yield of around 10½% to 11%, Ian's done really well.
0:56:40 > 0:56:41So, what's next?
0:56:41 > 0:56:45I've already bought another property, now, that's going to keep us busy for the next two years,
0:56:45 > 0:56:50so, er, I'm not in a rush to worry about having to sell these.
0:56:53 > 0:56:57We'll see you next time with more thrills and spills from the auction room.
0:56:57 > 0:57:00So make sure you join us then for more Homes Under The Hammer.
0:57:00 > 0:57:01- Goodbye.- Goodbye.
0:57:22 > 0:57:25Subtitles by Red Bee Media Ltd