0:00:02 > 0:00:03Welcome to Homes Under the Hammer.
0:00:03 > 0:00:08Property auctions used to be the territory of builders and developers, but not any more.
0:00:08 > 0:00:11All sorts of people are finding what they're looking for at auctions.
0:00:11 > 0:00:15They're managing to find themselves some real bargains under the hammer.
0:00:40 > 0:00:43Even for the most experienced buyers,
0:00:43 > 0:00:47auctions can be terribly exciting and nerve-racking places to be.
0:00:47 > 0:00:50But you have to make sure you don't get carried away.
0:00:50 > 0:00:54Did today's buyers keep a cool head? Here's what they bid for.
0:00:55 > 0:00:59This Telford terrace needs a full refurb and it could be a pushover.
0:01:01 > 0:01:04Right, it wouldn't take much to sort that out, would it?
0:01:06 > 0:01:11This place in London has lots of rooms but one big problem.
0:01:11 > 0:01:15There is no bathroom in this flat - anywhere!
0:01:15 > 0:01:20The decor in this Paisley semi feels rather retro.
0:01:20 > 0:01:22Reminds me of those 1970s pop videos
0:01:22 > 0:01:25with the really funky kind of editing on them.
0:01:26 > 0:01:28All these properties went to auction.
0:01:28 > 0:01:31We'll find out who bought them
0:01:31 > 0:01:33and what they paid when they went under the hammer.
0:01:33 > 0:01:34Sold.
0:01:37 > 0:01:42This is Dawley in Shropshire, part of Telford New Town,
0:01:42 > 0:01:48which was formed in 1968 to bring together some of the local villages.
0:01:48 > 0:01:50But Dawley very much has an identity of its own.
0:01:50 > 0:01:53It's got a brand new high street with lots of regeneration,
0:01:53 > 0:01:55so that's good news.
0:01:55 > 0:01:59There's no time to dawdle in Dawley, there's property to investigate.
0:01:59 > 0:02:03This bringing together of local communities was very much to reunite
0:02:03 > 0:02:06and give an identity to a place that was suffering
0:02:06 > 0:02:10due to the end of a mining industry that had long supported the area.
0:02:10 > 0:02:14By the 1960s, much of the land around here had been left desolate
0:02:14 > 0:02:18by the mines and the factories which subsequently closed,
0:02:18 > 0:02:21leaving all sorts of social problems.
0:02:21 > 0:02:24Nowadays, the grass is definitely greener
0:02:24 > 0:02:28and the property I'm here to see has lovely views over the countryside.
0:02:28 > 0:02:31It's this - three bed, mid-terrace at a guide price of £60,000.
0:02:31 > 0:02:33Let's take a look.
0:02:34 > 0:02:38The view looking out from the house is better than the view looking in.
0:02:38 > 0:02:42It appears to be the least cared for property in the street
0:02:42 > 0:02:47but there is an enclosed rear garden and parking 50 yards away.
0:02:47 > 0:02:50It's undoubtedly got the location and a promising postcode,
0:02:50 > 0:02:52all of which get my stamp of approval.
0:02:52 > 0:02:55- # Mr Postman - Mr Postman, look and see
0:02:55 > 0:02:57# Oh, yeah
0:02:57 > 0:02:59# If there's a letter there for me... #
0:03:00 > 0:03:03So what's on offer?
0:03:03 > 0:03:05A bit of post to go through!
0:03:05 > 0:03:09Through the front door and straight away a bit of a smell
0:03:09 > 0:03:11and a very run down feel to the property.
0:03:11 > 0:03:14But let's look at the size and things like that.
0:03:14 > 0:03:17You've got a downstairs cloakroom which is quite good news.
0:03:17 > 0:03:19Stairs up to your bedrooms,
0:03:19 > 0:03:22a good-sized kitchen by the look of it,
0:03:22 > 0:03:25very, very, very sparse in terms of units.
0:03:25 > 0:03:28A strange thing going on with the wall, I don't know what that is.
0:03:28 > 0:03:31Then through to a living room, a really good size.
0:03:31 > 0:03:35Through to the garden and you've got more storage space there
0:03:35 > 0:03:38and, aha, that's what I was looking at, this thing here.
0:03:38 > 0:03:42At some point there's been an archway put through here
0:03:42 > 0:03:43to give access to, I don't know,
0:03:43 > 0:03:46maybe a kitchen/dining room scenario.
0:03:46 > 0:03:49That would be much better. I don't reckon it would take much to...
0:03:51 > 0:03:54No. Right, it wouldn't take much to sort that out, would it?
0:03:54 > 0:03:57Better go put that right. Ahem.
0:03:57 > 0:03:59Bear with me.
0:04:00 > 0:04:02There you go.
0:04:03 > 0:04:05Nobody will know I've been here.
0:04:05 > 0:04:09# I'm the invisible man, I'm the invisible man... #
0:04:09 > 0:04:11There you go.
0:04:11 > 0:04:14I think we've established you can take the wall down or keep it up on a whim.
0:04:14 > 0:04:18Luckily, the rest of the house is built of sturdier stuff,
0:04:18 > 0:04:22with a downstairs cloakroom, three good-sized bedrooms upstairs...
0:04:24 > 0:04:26..and a bathroom with a suite
0:04:26 > 0:04:29I suggest you make vanish as quickly as possible.
0:04:29 > 0:04:31But generally,
0:04:31 > 0:04:36what it lacks in decorative order it makes up for in potential and size.
0:04:36 > 0:04:40Hidden under this grime is a decent family home which,
0:04:40 > 0:04:44at that £60,000 guide price, could be a very attractive investment.
0:04:44 > 0:04:47If you're looking for investment property
0:04:47 > 0:04:50you could do a lot worse than Telford.
0:04:50 > 0:04:53Buy this place for around the guide price, spend £10,000 doing it up,
0:04:53 > 0:04:58get £500 per calendar month in rent, that's around an 8% yield.
0:04:58 > 0:05:02You can't guarantee that prices here or desirability
0:05:02 > 0:05:05are going to rocket over the next years but that's a steady income
0:05:05 > 0:05:06and that's what we want.
0:05:08 > 0:05:10# Good thing... #
0:05:10 > 0:05:11So, as a rental proposition,
0:05:11 > 0:05:15this really does look like it might be a good thing.
0:05:15 > 0:05:19As Dawley improves long-term, it may stack up on the resale market.
0:05:19 > 0:05:21But what does a local estate agent think?
0:05:23 > 0:05:27The property itself needs quite a bit of work doing to it.
0:05:27 > 0:05:29It needs a new bathroom, a new kitchen,
0:05:29 > 0:05:33completely redecorating throughout.
0:05:33 > 0:05:36Don't be fooled by the windows, they are PVC
0:05:36 > 0:05:38but they're actually single glazed, so I'd say
0:05:38 > 0:05:41you need some new double glazing put in throughout.
0:05:41 > 0:05:44Undoubtedly, there is quite a bit of work to be done here
0:05:44 > 0:05:46but the house was guided at £60,000.
0:05:46 > 0:05:51Although it appears to be a sound rental property,
0:05:51 > 0:05:55with the estate agent estimating an income of £525 a month,
0:05:55 > 0:05:57could it also pay to sell it on?
0:05:59 > 0:06:06In its current condition, I'll give it a current market valuation of £75,000.
0:06:10 > 0:06:15Well, maybe Dawley's new day has dawned with rolling hills,
0:06:15 > 0:06:19a rejuvenated high street and some good rental returns.
0:06:19 > 0:06:21I think a potentially good little earner, this one.
0:06:21 > 0:06:24Let's see who agreed when it went under the hammer.
0:06:26 > 0:06:29Lot number eight is the three-bedroom mid-townhouse
0:06:29 > 0:06:32which has far-reaching views to the front elevation.
0:06:32 > 0:06:34Let's get it going, 40 can I say?
0:06:34 > 0:06:3740 bid, thank you. At £40,000.
0:06:37 > 0:06:4045, seated. At 45,000 seated.
0:06:40 > 0:06:44Left, 50. £50,000. 55?
0:06:46 > 0:06:50Yep, £55,000. 60 is it now?
0:06:50 > 0:06:5260.
0:06:52 > 0:06:5465. 70.
0:06:54 > 0:06:58Shaking his head. I'll take one if it helps. New bidder, 71.
0:06:58 > 0:07:0072.
0:07:01 > 0:07:0373.
0:07:03 > 0:07:0774. 75. 76. 77.
0:07:09 > 0:07:11Shaking your head now. 77, with you, left, sir.
0:07:11 > 0:07:15At 77... Back in, 78.
0:07:16 > 0:07:2179. From the top. Bid 79, left there.
0:07:21 > 0:07:23At 79,000 for the first time.
0:07:23 > 0:07:26At 79,000 for the second time.
0:07:26 > 0:07:29Third and final time at 79,000, all done.
0:07:30 > 0:07:32Your lot, sir, well done.
0:07:32 > 0:07:35Slightly hidden from view there, the successful bidders
0:07:35 > 0:07:39for £79,000 were Clark and his partner, Adrienne.
0:07:39 > 0:07:42They're both retired college lecturers
0:07:42 > 0:07:46who've switched from teaching to learning all about property developing.
0:07:46 > 0:07:49# But I lived and I learned... #
0:07:52 > 0:07:56- Adrienne, Clark, good to meet you both. Congratulations.- Thank you.
0:07:56 > 0:07:58Tell me why you wanted to buy this place.
0:07:59 > 0:08:02Well, it's an investment.
0:08:02 > 0:08:07It's to use the money that we've accrued from other properties
0:08:07 > 0:08:09and apart from that, we know the area
0:08:09 > 0:08:13and it's quite a nice house, although not in this state.
0:08:13 > 0:08:18It will be. Tell me a bit about you two. What's the relationship, the business relationship?
0:08:18 > 0:08:20Never met him before in my life.
0:08:20 > 0:08:22Who are you?
0:08:22 > 0:08:27- Is this your full-time job?- Just now, yes.- What's your past jobs?
0:08:27 > 0:08:32- We were both college lecturers.- OK. So, moving away from teaching to...
0:08:32 > 0:08:36- Something a little less stressful. - Oh, really?- Oh, yes.
0:08:36 > 0:08:38Hmm. I need to have a word with you.
0:08:39 > 0:08:42OK, good. There's no stress in property developing at all(!)
0:08:42 > 0:08:45It's easy. Nothing goes wrong.
0:08:45 > 0:08:48# I'm easy like Sunday morning... #
0:08:48 > 0:08:50Oh, if only it was that straightforward.
0:08:50 > 0:08:53But having done a number of other properties,
0:08:53 > 0:08:56they know it's anything but easy.
0:08:56 > 0:08:57# Easy... #
0:08:57 > 0:08:59What's the idea in general for it?
0:08:59 > 0:09:01Is it to do it up and sell, or to rent it out?
0:09:01 > 0:09:03To sell, preferably.
0:09:03 > 0:09:06- If they don't sell because of the market then we'll rent.- Right.
0:09:06 > 0:09:09You talk about "they", what do you mean "they"?
0:09:09 > 0:09:13- We bought more than one.- When?
0:09:13 > 0:09:16- At the same time as this. - Did you?- The next lot.
0:09:16 > 0:09:19- Oh, right.- And then about five or six lots later.
0:09:19 > 0:09:21We bought three at that auction.
0:09:21 > 0:09:23All done?
0:09:23 > 0:09:26Your lot, sir, well done. Your lot, sir, well done.
0:09:26 > 0:09:29Your lot, sir, right in the corner.
0:09:29 > 0:09:33# You win over and over again... #
0:09:33 > 0:09:36That was a bit of a spending spree.
0:09:36 > 0:09:40With three falls of the hammer, they just triple their workload.
0:09:40 > 0:09:44What challenges do you think taking three at the same time is going to bring?
0:09:44 > 0:09:46- Time, probably. - Organisation, basically.
0:09:46 > 0:09:49It could bring economies of scale.
0:09:49 > 0:09:52Three bathroom suites, three kitchen units, three kitchen outfits,
0:09:52 > 0:09:56three lots of work for builders you might want to employ.
0:09:56 > 0:09:59There are some bargains out there for two-for-three.
0:09:59 > 0:10:03Instead of buying one or two, we buy three!
0:10:03 > 0:10:08So tell me specifically what the idea is for this place.
0:10:08 > 0:10:13Basically, flooring, decoration, kitchen, bathroom,
0:10:13 > 0:10:15moving a few walls here and there.
0:10:15 > 0:10:18- Something like that. - What's the budget?
0:10:18 > 0:10:23Hopefully we should be able to do it in about 10, £10,000.
0:10:23 > 0:10:24What about the other ones?
0:10:24 > 0:10:27Are you going to run them simultaneously as projects?
0:10:27 > 0:10:31I've got a deadline of three months to get it all finished.
0:10:31 > 0:10:34- Just this one or all of them? - All of them.
0:10:34 > 0:10:38- Wow.- We're hoping to do this one in about two months.
0:10:38 > 0:10:40One of the other ones just needs redecoration,
0:10:40 > 0:10:44new kitchen, new bathroom. That's a fairly straightforward one.
0:10:44 > 0:10:46The other one is similar but needs central heating
0:10:46 > 0:10:50and boiler put in so that'll be a bit longer.
0:10:50 > 0:10:55But as we're working on this we can have plumbers, electricians etc
0:10:55 > 0:11:00working on the other ones. There will be some simultaneous work done.
0:11:00 > 0:11:03After this, if it's successful?
0:11:03 > 0:11:05Don't know, we might go back to auction
0:11:05 > 0:11:08or we might run away into the sun if we get a good price for all three.
0:11:08 > 0:11:10Probably see you at auction.
0:11:11 > 0:11:13Well, good. Congratulations. Well done.
0:11:13 > 0:11:16I look forward to seeing how you get on.
0:11:16 > 0:11:18Thank you.
0:11:20 > 0:11:23Let's hope that this big spending spree
0:11:23 > 0:11:27brings big profits for Adrienne and Clark.
0:11:27 > 0:11:30But it's going to take more than nervous energy to sort out this
0:11:30 > 0:11:32and their other two properties.
0:11:32 > 0:11:37How are they going to get on? You can find out later in the show.
0:11:40 > 0:11:43Today I'm in Leyton in East London, just a mile or so
0:11:43 > 0:11:47down the road from Stratford, site of the 2012 Olympics.
0:11:51 > 0:11:56Stratford's regeneration has been dramatic but Leyton hasn't missed out either.
0:11:56 > 0:11:59With large, affordable Victorian houses
0:11:59 > 0:12:02and a fast train line appealing to young professionals,
0:12:02 > 0:12:06it's got a sporting chance of increasing its value in the future.
0:12:07 > 0:12:12The property I'm here to see is a short athletic sprint from the Games site
0:12:12 > 0:12:15but more importantly, it's a ten minute stroll to the tube station.
0:12:15 > 0:12:19It's also a rather attractive road.
0:12:19 > 0:12:23It has these lovely bay-fronted Victorian houses on.
0:12:23 > 0:12:26I'm here to see this flat, it's on the ground floor.
0:12:26 > 0:12:29It had a guide price of 145,000.
0:12:32 > 0:12:36Well, favourable first impressions -
0:12:36 > 0:12:40the sash windows remain and the paintwork and rendering look OK.
0:12:40 > 0:12:43It's even got the original path.
0:12:43 > 0:12:45The number of bedrooms in the flat?
0:12:45 > 0:12:50I'm not sure, since the catalogue just states "four rooms". Make of that what you will.
0:12:52 > 0:12:57Even though this is Victorian, they were designed as purpose-built flats
0:12:57 > 0:13:00so you've got one on the ground floor and one going up there.
0:13:00 > 0:13:04A bit dated, first impressions, a bit yellow,
0:13:04 > 0:13:07and quite flowery in here.
0:13:07 > 0:13:12Obviously, you need to consider this decor, you need to really spruce this place up, modernise it,
0:13:12 > 0:13:15but what I love is the ceiling height.
0:13:15 > 0:13:17This is a really spacious room.
0:13:17 > 0:13:21Most houses would have the same size lounge as this.
0:13:21 > 0:13:25Hoping there might be a nice original fireplace behind there,
0:13:25 > 0:13:28but look at this gorgeous bay window.
0:13:28 > 0:13:32This is quite a peaceful road so it will be quite good if you could keep these original sashes,
0:13:32 > 0:13:35because they look absolutely beautiful.
0:13:35 > 0:13:38First thoughts, not bad for that guide price.
0:13:39 > 0:13:44It certainly feels like a standard, spacious Victorian property at the moment.
0:13:44 > 0:13:48Along from the front reception is a decent size room next door,
0:13:48 > 0:13:51which I suppose must be the bedroom.
0:13:52 > 0:13:55There's a window out onto the side return,
0:13:55 > 0:13:58which leads to the main part of the garden.
0:13:59 > 0:14:02Then, at the back of the flat, it all gets a little odd.
0:14:02 > 0:14:06We've got a long, long corridor into the back of the property.
0:14:06 > 0:14:09A bit of an anonymous room.
0:14:09 > 0:14:11Don't really know what it's currently being used for.
0:14:11 > 0:14:15And, erm, gosh. A very small, dark room here.
0:14:15 > 0:14:17A bit of a waste, really.
0:14:17 > 0:14:21Through here we've got the kitchen.
0:14:21 > 0:14:24There is a sink. You couldn't really call it a kitchen at the moment.
0:14:24 > 0:14:26Toilet through there,
0:14:26 > 0:14:31but that tells me there is no bathroom in this flat, anywhere!
0:14:31 > 0:14:33So we've got to re-jig this layout
0:14:33 > 0:14:37and seriously think about how we can add a bathroom.
0:14:37 > 0:14:40Now, my thoughts are, use this as the bathroom.
0:14:40 > 0:14:45Knock this into one. You'd have to block up the back door so you could have a nice bath.
0:14:45 > 0:14:48You'd need access outside.
0:14:48 > 0:14:52Well, you could put the access along this wall somewhere.
0:14:52 > 0:14:55What about having this window as a doorway?
0:14:55 > 0:14:58And how about taking this wall out?
0:14:58 > 0:15:03Then you can have a lovely, large open-plan kitchen-diner at the back of the house.
0:15:03 > 0:15:09You can have access into the garden. I think that will be the most cost-effective way of doing things.
0:15:09 > 0:15:11Two large bedrooms at the front
0:15:11 > 0:15:15and a really nice open-plan kitchen/eating space at the back of the property.
0:15:17 > 0:15:23# It seems so, so unusual... #
0:15:23 > 0:15:26I really think I've cracked it.
0:15:26 > 0:15:29Creating a large kitchen/living area out of these two rooms
0:15:29 > 0:15:34with access to the back garden should help sort out the unusual layout here,
0:15:34 > 0:15:37with the added bonus of a proper bathroom.
0:15:40 > 0:15:44Alternatively, you could create access to the garden
0:15:44 > 0:15:47through the bedroom which looks onto the side return.
0:15:48 > 0:15:51Either way, you're sorted.
0:15:53 > 0:15:57We've invited a local estate agent along to look at this flat,
0:15:57 > 0:16:00guided at £145,000.
0:16:00 > 0:16:03What does he think of its unconventional layout?
0:16:05 > 0:16:07My impressions of this property, certainly unusual,
0:16:07 > 0:16:09in that it doesn't have a bathroom
0:16:09 > 0:16:12so I don't know what the previous owner's done,
0:16:12 > 0:16:16but it's certainly a renovation project. It would be great for a developer.
0:16:16 > 0:16:20So what could be the best way of maximising the layout here?
0:16:22 > 0:16:27For me, the most cost-effective route would be to put the bathroom where the small kitchen is now,
0:16:27 > 0:16:33then place a door to the side and have an open-plan lounge-diner so you're keeping the two bedrooms.
0:16:33 > 0:16:36What's the flat likely to be worth
0:16:36 > 0:16:39after a refurbishment and some layout changes?
0:16:39 > 0:16:43After you've spent £20,000-£25,000,
0:16:43 > 0:16:48I would estimate it to be £200,000, possibly £210,000, depending how good the job was.
0:16:48 > 0:16:53For a buy-to-let investor, what's the rental potential here?
0:16:53 > 0:16:56The rental market for this type of property is very strong.
0:16:56 > 0:16:58Rents have gone up in East London.
0:16:58 > 0:17:01I would estimate the value to be £900 per calendar month.
0:17:01 > 0:17:05This is a decent flat for what seems a reasonable guide price.
0:17:05 > 0:17:10Get a bathroom in and it could provide a reasonable instant profit.
0:17:10 > 0:17:13But, for me, this feels like a long-term investment
0:17:13 > 0:17:17in an area that could swim in the wake of nearby Stratford.
0:17:17 > 0:17:19Let's see who went for it at the auction.
0:17:19 > 0:17:22Right, next lot it Lot 6.
0:17:22 > 0:17:25Four-room ground floor flat.
0:17:25 > 0:17:28Popular area of East London. I don't know... 130?
0:17:28 > 0:17:30130 on my left.
0:17:30 > 0:17:32135.
0:17:32 > 0:17:36140... 140... 145.
0:17:37 > 0:17:40150. Round it off to 150.
0:17:41 > 0:17:44150. 155.
0:17:44 > 0:17:45160?
0:17:45 > 0:17:47156.
0:17:49 > 0:17:52Have a think. 155 down here.
0:17:52 > 0:17:54156 elsewhere.
0:17:54 > 0:17:59156 at the back. 157.
0:17:59 > 0:18:01158.
0:18:01 > 0:18:05158. 159. 160?
0:18:05 > 0:18:08Yes? 161.
0:18:08 > 0:18:10162.
0:18:10 > 0:18:13163.
0:18:13 > 0:18:14164.
0:18:14 > 0:18:16165.
0:18:17 > 0:18:19165.
0:18:20 > 0:18:21166.
0:18:21 > 0:18:25If not, 165, first time, second time,
0:18:25 > 0:18:27third and last time, if you're all done?
0:18:28 > 0:18:31Sold, 165. Well done, sir.
0:18:33 > 0:18:37That final successful bid of £165,000 was made by Mahbub,
0:18:37 > 0:18:40who's bought this with his business partner, Tariq.
0:18:40 > 0:18:44Mahbub lives locally and works in the public sector
0:18:44 > 0:18:46and has four other buy-to-let properties.
0:18:46 > 0:18:49I wanted to find out what he saw in this flat.
0:18:49 > 0:18:52It wasn't the bathroom, that's for sure!
0:18:53 > 0:18:56- Mahbub, congratulations. Well done. - Thank you.
0:18:56 > 0:19:01- You must be really pleased you've got this flat.- Very happy.
0:19:01 > 0:19:05- Was it the first time you'd been in an auction room?- First time ever.
0:19:05 > 0:19:08- How much research did you do? - Plenty of research.
0:19:08 > 0:19:11I know the local area, I read the legal pack,
0:19:11 > 0:19:14I had a budget set, once I identified the property,
0:19:14 > 0:19:18I read all the paperwork and everything seemed to fit the bill.
0:19:18 > 0:19:22Did you look around the flat prior to the auction?
0:19:22 > 0:19:25Yes, I came round twice. First time, I came round, had a look.
0:19:25 > 0:19:29Second time, I brought my friend who is the business partner,
0:19:29 > 0:19:31we had a look and decided this was the one we'd go for.
0:19:31 > 0:19:36- What attracted you?- Basically, it's the location, plus the budget
0:19:36 > 0:19:42and the condition - it's a blank canvas and we can do what we want.
0:19:42 > 0:19:45- Why are you doing this? - I have a passion.
0:19:45 > 0:19:48I've always been interested in property.
0:19:48 > 0:19:52I've bought a few properties over the years. I intend to keep them.
0:19:52 > 0:19:54This is the first time I've been to an auction.
0:19:54 > 0:19:58Me and my friend, we've raised some money, and here we are.
0:19:59 > 0:20:04# Talking about the passion... #
0:20:05 > 0:20:09Mahbub and his business partner have set a renovation budget of £20,000.
0:20:09 > 0:20:12They hope to sell the flat on once complete.
0:20:12 > 0:20:15But the first thing they need to address
0:20:15 > 0:20:18is sorting out that vital missing detail.
0:20:21 > 0:20:23You've got one big problem here
0:20:23 > 0:20:26and that is that you don't have a bathroom.
0:20:26 > 0:20:27No.
0:20:27 > 0:20:29Where do you intend to put the bathroom?
0:20:29 > 0:20:32I've walked around this flat many a time thinking,
0:20:32 > 0:20:34"Which room should I put it in?"
0:20:34 > 0:20:38How are you going to do it? The layout as it is doesn't work.
0:20:38 > 0:20:42It doesn't work. There's a ceiling price to these properties.
0:20:42 > 0:20:45We can chop and change - take out walls, chimney breasts,
0:20:45 > 0:20:49but I think it'll cost too much and we won't recover the costs.
0:20:49 > 0:20:51We're going to keep the layout as it is,
0:20:51 > 0:20:57except where the kitchen is now, we'll have a shower room, and the toilet will stay separate.
0:20:57 > 0:21:00And where we are now, this will be an L-shaped kitchen.
0:21:00 > 0:21:05We'll block this entrance and create an entrance in the hallway
0:21:05 > 0:21:10so you have a lounge at the front, a bedroom, second bedroom, kitchen-diner,
0:21:10 > 0:21:14a shower room, which will be high spec, and a toilet.
0:21:14 > 0:21:17What are you going to have in that little, dark room through there?
0:21:17 > 0:21:20A bedroom with the entrance from the hallway.
0:21:20 > 0:21:23- That's a very small bedroom. - It will be, yes.
0:21:23 > 0:21:26So one huge bedroom and one very small bedroom.
0:21:26 > 0:21:30You can get a bed and you can get a cupboard.
0:21:30 > 0:21:34What concerns me is the access into the garden.
0:21:34 > 0:21:35Where will the door be?
0:21:35 > 0:21:41With the properties in this area, the access to the garden is through the bathrooms or the shower rooms.
0:21:41 > 0:21:44It's nothing unusual with the layout of these properties.
0:21:44 > 0:21:48I know you say that's not unusual but you've got to think,
0:21:48 > 0:21:52"Do people want to go through their bathroom to get to the garden?"
0:21:52 > 0:21:54There MUST be a better solution.
0:21:54 > 0:22:00How about the bedroom... a bedroom would be a much more suitable place to put the door.
0:22:00 > 0:22:04You are possibly right and I don't disagree with you,
0:22:04 > 0:22:07but I think the market we're aiming for
0:22:07 > 0:22:11tend to use the bedroom a lot more, whereas the bathroom or shower
0:22:11 > 0:22:16will be used for 10 or 20 minutes, so during the day, you'll be away,
0:22:16 > 0:22:18so I think it's fine.
0:22:18 > 0:22:20# We just disagree... #
0:22:22 > 0:22:27I think Mahbub and I will have to agree to disagree on this one.
0:22:27 > 0:22:32His solution may be cheaper, but I don't think such an unconventional layout will appeal to everyone.
0:22:32 > 0:22:36He may end up limiting the property's attractiveness on the resale market
0:22:36 > 0:22:39instead of broadening it.
0:22:42 > 0:22:45How long do you think this project will take you?
0:22:45 > 0:22:49- The builder says about two months. - But realistically?
0:22:49 > 0:22:51I think we're talking about ten weeks.
0:22:51 > 0:22:55Are you going to be getting your hands dirty on site?
0:22:55 > 0:23:00I'll be here and so will my nephews, my partner's son will be here,
0:23:00 > 0:23:03and my father will pop around and say hello to the builders.
0:23:03 > 0:23:07- I can't wait to see what you do. Congratulations.- Thank you.
0:23:09 > 0:23:13So access to your garden through your bathroom?
0:23:13 > 0:23:15Hmm, I haven't seen that in a while.
0:23:15 > 0:23:18There's a reason for that - that's because it's not a great idea.
0:23:18 > 0:23:22I do know why he's going down this route. It makes financial sense.
0:23:22 > 0:23:27But I hope there's a different yet cheap plan that may emerge.
0:23:27 > 0:23:29You can find out how it goes later in the programme.
0:23:30 > 0:23:36Coming up - in Paisley, this place needs expert help.
0:23:36 > 0:23:39It has a slight air of DIY about it.
0:23:40 > 0:23:45We return to London to see how Mahbub's getting on with his flat.
0:23:46 > 0:23:50It's worked fine. My dad's been here every day guiding me.
0:23:51 > 0:23:57But, first, back in Telford, do Clark and Adrienne recommend multi makeovers?
0:23:57 > 0:24:00- Not three at one time. - Not three at once.
0:24:04 > 0:24:08In Dawley, Shropshire, we came across a 1970s three-bed terrace
0:24:08 > 0:24:11that had been sadly neglected.
0:24:11 > 0:24:13Sitting in relatively well-kept area,
0:24:13 > 0:24:17it definitely appeared to be the worst house on the street.
0:24:17 > 0:24:18That wasn't such a bad thing,
0:24:18 > 0:24:21as it meant there was plenty of scope for improvement.
0:24:21 > 0:24:23It could also be a good investment,
0:24:23 > 0:24:27which is exactly why ex-college lecturers Clark and Adrienne
0:24:27 > 0:24:32plumped for it at auction, purchasing it for £79,000.
0:24:32 > 0:24:36But it wasn't the only house to catch their eye that day.
0:24:40 > 0:24:46- Well, we bought more than one. - When?- Straight after this.
0:24:46 > 0:24:48- Did you?- Yes, the next lot. - Oh, right.
0:24:48 > 0:24:52And then five or six lots later. We bought three at that auction.
0:24:52 > 0:24:56The plan was that by doing three properties at once,
0:24:56 > 0:24:58they could co-ordinate the workflow,
0:24:58 > 0:25:00moving the trades from one house to another.
0:25:00 > 0:25:04With this particular one, they hoped a budget of £10,000 would suffice.
0:25:04 > 0:25:09# Just follow steps one, two and three... #
0:25:09 > 0:25:15But had their triple plan been three times better or three times worse?
0:25:15 > 0:25:17Was it heaven or hell?
0:25:19 > 0:25:22Well, nearly five months later, we're back.
0:25:22 > 0:25:27And, wow! The front of the house is almost unrecognisable.
0:25:27 > 0:25:31Gone is the jungle of plants and a tired-looking exterior,
0:25:31 > 0:25:36to be replaced by a new lawn and bedding.
0:25:36 > 0:25:41The rediscovered path now leads to a property with windows and doors replaced.
0:25:46 > 0:25:50We practically rebuilt the house. We've left the foundations.
0:25:50 > 0:25:52Having stripped the house back,
0:25:52 > 0:25:56it was a case of carefully putting it back together again.
0:25:56 > 0:26:00The electrics has had work on it, the plumping has had work on it,
0:26:00 > 0:26:04new cloakroom, flooring throughout, every surface has been painted.
0:26:04 > 0:26:06Just one or two jobs.
0:26:06 > 0:26:12They've really gone to town here and nowhere more so than in the kitchen.
0:26:15 > 0:26:17Whoa. That's impressive!
0:26:18 > 0:26:23In the kitchen here, it's completely been redone.
0:26:23 > 0:26:28Over here was a very wonky arch that's all been taken away.
0:26:28 > 0:26:35We've moved the wall back so it's made a very spacious dining-kitchen.
0:26:35 > 0:26:40That's all been fully fitted with integrated units and it's really nice now.
0:26:40 > 0:26:43The kitchen is a fantastic improvement
0:26:43 > 0:26:47and they've reworked the space very well.
0:26:49 > 0:26:53Upstairs, this high quality refurbishment continues
0:26:53 > 0:26:56with the three bedrooms modernised and redecorated.
0:27:02 > 0:27:03And in the main bedroom, again,
0:27:03 > 0:27:07they've successfully maximised the area they had to play with.
0:27:07 > 0:27:12In this bedroom, in this corner there was an old heating system,
0:27:12 > 0:27:14which came out to about there.
0:27:14 > 0:27:17Also, there was two walk-in cupboards,
0:27:17 > 0:27:19one accessed from this room
0:27:19 > 0:27:23and another through a door which had access to the back bedroom.
0:27:23 > 0:27:25We had both of them taken away
0:27:25 > 0:27:28and, in doing so, we've opened this room right up
0:27:28 > 0:27:32and it's now, well, a much more usable room and a lot bigger,
0:27:32 > 0:27:35so really happy with the way it's turned out.
0:27:35 > 0:27:38As if that wasn't enough, they've also pulled out all the stops
0:27:38 > 0:27:40with a completely renovated bathroom.
0:27:43 > 0:27:47It comes not only with new shower, tiling and contemporary unit,
0:27:47 > 0:27:51it also has underfloor heating to boot.
0:27:52 > 0:27:57And, finally, that garden has been brought back to life.
0:27:57 > 0:28:02This development alone has clearly taken a lot of work
0:28:02 > 0:28:06but this was just one of three, so how have they coped?
0:28:06 > 0:28:08It's been a headache but it's been good
0:28:08 > 0:28:12because when we've had problems with the work and those delays,
0:28:12 > 0:28:16we've been able to the other properties and do work on them.
0:28:16 > 0:28:18It's had its ups and downs.
0:28:18 > 0:28:21We haven't been here every single day
0:28:21 > 0:28:26but...it's been... it's been busy.
0:28:26 > 0:28:29It was always going to be tough doing three together
0:28:29 > 0:28:34but they'd hoped it would be more efficient by saving them money and time.
0:28:34 > 0:28:38- Originally, I wanted it done in two months.- And I said three.
0:28:38 > 0:28:41It's taken five so I was closest.
0:28:41 > 0:28:48I did say though, erm, all three properties finished in three months.
0:28:49 > 0:28:50That hasn't happened.
0:28:50 > 0:28:55OK, so they were slightly optimistic about their timescale
0:28:55 > 0:28:57for such a comprehensive renovation.
0:28:57 > 0:28:59What about their finances?
0:29:03 > 0:29:09The budget was £10,000, hopefully, with a contingency of £5,000.
0:29:09 > 0:29:12We have spent all that. It's been at least the £15,000.
0:29:13 > 0:29:18A £15,000 spend on top of their £79,000 purchase price
0:29:18 > 0:29:23will take their total outlay before costs to around £94,000.
0:29:23 > 0:29:27With Clark and Adrienne hoping to sell this house ASAP,
0:29:27 > 0:29:30will that level of investment make a decent return?
0:29:30 > 0:29:33What do two local estate agents think?
0:29:33 > 0:29:37The property's been very nicely decorated throughout,
0:29:37 > 0:29:41it's got nice, modern fitments which have been put into the property.
0:29:41 > 0:29:44I particularly like what they've done with the kitchen,
0:29:44 > 0:29:46making it more of a family kitchen-diner
0:29:46 > 0:29:48and really done well throughout.
0:29:48 > 0:29:51The property has been done to a really high standard.
0:29:51 > 0:29:53It's very spacious, very clean, bright,
0:29:53 > 0:29:54all the right selling colours.
0:29:54 > 0:29:58They've gone the extra mile, perhaps more than they needed to.
0:29:58 > 0:30:01This area will have a ceiling price,
0:30:01 > 0:30:04so have they spent too much to get a decent return?
0:30:04 > 0:30:08Surely this quality of finish should attract buyers and renters alike.
0:30:08 > 0:30:12I would see the property achieving around £575 per calendar month.
0:30:12 > 0:30:15I would suggest an asking price
0:30:15 > 0:30:18of between £550 to £575 per calendar month.
0:30:18 > 0:30:20A bit low.
0:30:20 > 0:30:24I would have thought so. More the £600 mark, maybe £625.
0:30:24 > 0:30:28Rental really isn't the way they want to go with this house
0:30:28 > 0:30:32but £575 a month would bring in £6,900 a year -
0:30:32 > 0:30:34a reasonably healthy yield of over 7%.
0:30:34 > 0:30:39But with £97,000 invested so far,
0:30:39 > 0:30:43could it make the returns they were hoping for on the resale market?
0:30:43 > 0:30:46I would recommend an asking price of £105,000.
0:30:46 > 0:30:49I would see the property achieving around £105,000.
0:30:49 > 0:30:54That's a little bit low but it's in the ball park. Not too disappointed.
0:30:54 > 0:31:01So perhaps a pre-tax profit of around £11,000, minus selling expenses.
0:31:01 > 0:31:04But, on reflection, have these two former lecturers
0:31:04 > 0:31:06learnt a few lessons about developing?
0:31:06 > 0:31:09We'd go back to auction. We would, wouldn't we?
0:31:09 > 0:31:14Not three at one time, though. I think that was possibly a mistake.
0:31:14 > 0:31:17# Everybody's got to learn sometime
0:31:20 > 0:31:25# Everybody's got to learn sometime.... #
0:31:29 > 0:31:31# One, two, three four! #
0:31:31 > 0:31:35MUSIC: "Pencil Full Of Lead" by Paolo Nutini
0:31:35 > 0:31:39Paisley is the largest town in Scotland.
0:31:39 > 0:31:43Just 20 minutes from Glasgow, it gained worldwide fame
0:31:43 > 0:31:47when it lent its name to the patterned fabric that was produced here in the 19th Century.
0:31:47 > 0:31:51It's also formerly home to actors David Tennant, Gerard Butler,
0:31:51 > 0:31:56and the birthplace of singer-songwriters Gerry Rafferty and Paolo Nutini.
0:31:56 > 0:31:57Take it away, Paolo!
0:31:57 > 0:32:00# Food in my belly and a licence for my telly
0:32:00 > 0:32:03# Nothing's gonna bring me down. #
0:32:04 > 0:32:08Well, just a mile from the centre of Paisley
0:32:08 > 0:32:12and close to Glasgow International Airport is Ferguslie Park.
0:32:12 > 0:32:15The area hasn't had the best reputation in the past.
0:32:15 > 0:32:18In fact, it was one of the first places in the UK
0:32:18 > 0:32:22where they demolished houses that had been built in the 20th Century.
0:32:22 > 0:32:27But the local council is ploughing a lot of money into the area and it's on the up
0:32:27 > 0:32:31so let's hope the property is slightly more attractive inside
0:32:31 > 0:32:32than the weather today.
0:32:32 > 0:32:37# Why does it always rain on me? #
0:32:37 > 0:32:40Well, a little spot of rain never put me off before.
0:32:40 > 0:32:43So, what have we got? It's described in the auction catalogue
0:32:43 > 0:32:48as a two-bedroomed semi-detached villa with a guide price of £35,000.
0:32:48 > 0:32:53The exterior needs attention and the front garden could do with a tidy up,
0:32:53 > 0:32:56as could the greenery that's growing out of the guttering.
0:32:56 > 0:33:00But it does look like you get a lot of house for your money,
0:33:00 > 0:33:03so is it as promising inside?
0:33:04 > 0:33:07At first glance, it is.
0:33:07 > 0:33:10That's quite pleasant. I like the staircase, the way it bends round -
0:33:10 > 0:33:12a bit of character there.
0:33:12 > 0:33:15Then up on to a higher level from where you come in.
0:33:15 > 0:33:22Very nice-sized front living room with this slightly bayed window.
0:33:22 > 0:33:26It looks in need of a bit of tender loving care, but a good size.
0:33:26 > 0:33:28Erm, and that's a bit of a surprise.
0:33:28 > 0:33:31A downstairs loo which looks like it's been refurbished,
0:33:31 > 0:33:34although to what standard, I'm not sure.
0:33:34 > 0:33:36Then through to the kitchen.
0:33:36 > 0:33:41Again, it has a slight air of DIY about it,
0:33:41 > 0:33:44if I'm absolutely honest.
0:33:44 > 0:33:46But it's not a bad size.
0:33:46 > 0:33:50Again, the high ceiling giving a feeling of space.
0:33:50 > 0:33:55Interesting cupboards. Look, a bit of a water tank there.
0:33:55 > 0:33:58OK, an interesting place for it!
0:33:58 > 0:34:02But, all in all, as a starting point, pretty good.
0:34:02 > 0:34:07Well, no major problems for this house so far, which is great.
0:34:07 > 0:34:09OK, you'd want to put in a new kitchen
0:34:09 > 0:34:12but, although the only bathroom is downstairs,
0:34:12 > 0:34:16you could keep it if you were planning to rent it out and just freshen it up.
0:34:16 > 0:34:20A new fire in the living room could provide a lovely focal point.
0:34:20 > 0:34:26And the windows let a lot of light in so onwards and upwards.
0:34:27 > 0:34:31So, upstairs, and I really do like this really big staircase.
0:34:31 > 0:34:33It gives a good feeling of space to the property
0:34:33 > 0:34:38and modern houses don't really, because of space constraints,
0:34:38 > 0:34:40give enough space to staircases and landings,
0:34:40 > 0:34:43because there's a big landing with a cupboard on it.
0:34:43 > 0:34:47The only downside is it does mean this fairly substantial property
0:34:47 > 0:34:51has only got two bedrooms, one at the front there.
0:34:51 > 0:34:54Actually, it doesn't look in too bad condition.
0:34:54 > 0:34:56And then through to a rear bedroom,
0:34:56 > 0:35:00where there's an interesting choice of wallpaper.
0:35:00 > 0:35:03It reminds me of those 1970s pop videos
0:35:03 > 0:35:06with the really funky editing on them.
0:35:06 > 0:35:09Yeah. A bit of wallpaper required, I think!
0:35:09 > 0:35:13The wallpaper is enough to make your eyes go peculiar.
0:35:13 > 0:35:15Another strange feature upstairs
0:35:15 > 0:35:19is the toy cash machine built into the wall in the front bedroom.
0:35:19 > 0:35:24It's an interesting quirk but I'd say it, ahem, has to go.
0:35:24 > 0:35:27And, while you're at it, you need to investigate these signs of damp.
0:35:27 > 0:35:29It doesn't look too bad,
0:35:29 > 0:35:32but you'd want to make sure the water isn't getting in somewhere.
0:35:32 > 0:35:35Moving outside, it gets better.
0:35:35 > 0:35:36Well, sort of.
0:35:36 > 0:35:40Yes, there's work to clear the back garden but it is a decent size.
0:35:40 > 0:35:44On a drier day, this would be great for families to enjoy.
0:35:44 > 0:35:47but with a front garden and space for off-street parking,
0:35:47 > 0:35:50I think this place has enough going for it.
0:35:50 > 0:35:52At a guide price of 35,000,
0:35:52 > 0:35:56we asked a local property expert to come and give us his thoughts on it.
0:35:58 > 0:36:03# If you're thinking you're too cool to boogie... #
0:36:03 > 0:36:05The property is situated at a junction
0:36:05 > 0:36:08and it is overlooked by other properties.
0:36:08 > 0:36:11Sadly, some of them are boarded up,
0:36:11 > 0:36:14which, from a marketing point of view, would not be great
0:36:14 > 0:36:18if it was to be sold at the moment with them in that condition.
0:36:18 > 0:36:21But I do feel, once it's renovated, that it, hopefully,
0:36:21 > 0:36:26will be in a condition that's going to be appealing to many buyers.
0:36:26 > 0:36:30So he thinks this type of property would suit a developer
0:36:30 > 0:36:35who would do a quick £5,000 to £10,000 renovation then rent it out.
0:36:35 > 0:36:40So what kind of rental could this place achieve?
0:36:40 > 0:36:43In the current market, I feel the property will rent
0:36:43 > 0:36:46for between £350 and £400 per calendar month.
0:36:46 > 0:36:49If the property was renovated to a good standard,
0:36:49 > 0:36:52what could it achieve on the resale market?
0:36:52 > 0:36:57Once renovated, I feel the property will be worth in the region of £55,000 to £60,000.
0:36:57 > 0:36:59It may not be the most glamorous of areas,
0:36:59 > 0:37:03but there's a good demand for rental property.
0:37:03 > 0:37:04I think this house is a pearler.
0:37:04 > 0:37:08Yes, it needs tender loving care but remember that guide price.
0:37:08 > 0:37:11Let's see who it attracted when it went under the hammer.
0:37:15 > 0:37:20Two-bedroom semi-detached villa in Paisley. Guide price is £35,000.
0:37:20 > 0:37:25I'm going to look for a start here about £25,000. How does that sound?
0:37:26 > 0:37:30£25,000 on the phone. I've got £25,000.
0:37:30 > 0:37:32Anybody else coming in? 26.
0:37:34 > 0:37:3627. 28.
0:37:36 > 0:37:37You're in at 29.
0:37:37 > 0:37:41You're in at £30,000. Thank you, sir. Nice and clear.
0:37:41 > 0:37:43£31,000.
0:37:43 > 0:37:4532.
0:37:45 > 0:37:47I'll take 500 if it helps.
0:37:49 > 0:37:51Back in at 33. £33,000.
0:37:51 > 0:37:53£33,500.
0:37:53 > 0:37:5634. At £34,000.
0:37:56 > 0:37:58It's against the phone.
0:37:58 > 0:38:01Back in at £34,500. 35.
0:38:01 > 0:38:05The gentleman at the back of the room at £35,000.
0:38:05 > 0:38:08Anybody else, be quick, please. We've got £35,000.
0:38:08 > 0:38:10Out on the phone?
0:38:10 > 0:38:11£35,000 it is.
0:38:11 > 0:38:15Sold to the gentleman standing at the back of the room.
0:38:15 > 0:38:18And the successful bid of £35,000,
0:38:18 > 0:38:21bang on the guide price, came from Colin.
0:38:21 > 0:38:23# We've got some half-price cracked ice
0:38:23 > 0:38:26# And miles and miles of carpet tiles... #
0:38:26 > 0:38:29He describes himself as "a bit of a Del Boy character",
0:38:29 > 0:38:33as his work involves buying cut-price unwanted goods from shops
0:38:33 > 0:38:36and leasing companies, and then selling them on.
0:38:36 > 0:38:40I met him at the property to find out more.
0:38:41 > 0:38:44Colin. Lovely to meet you. Congratulations.
0:38:44 > 0:38:47Tell me why you wanted to buy this place.
0:38:47 > 0:38:48I didn't.
0:38:48 > 0:38:49You didn't?!
0:38:49 > 0:38:53No. It was... Not a mistake. I went to buy another one in Hamilton.
0:38:53 > 0:38:55- It was pre-sold, during the auction. - Ah.
0:38:55 > 0:38:58This came up at the right price, so I bought it.
0:38:58 > 0:39:01So, had you seen it beforehand?
0:39:01 > 0:39:04I hadn't seen it. I hadn't read the legal pack, which is a nightmare.
0:39:04 > 0:39:07I hadn't done anything. Didn't even know what street it was.
0:39:07 > 0:39:11- You know how badly that could have gone wrong, don't you?- Uh-huh!
0:39:11 > 0:39:13That's how, straight after the auction,
0:39:13 > 0:39:16it took me two hours to get here, but I had to get here.
0:39:16 > 0:39:19Everybody was winding me up. "Colin, it's only a brick".
0:39:19 > 0:39:20THEY LAUGH
0:39:20 > 0:39:26Well, joking aside, Colin's broken all Homes Under The Hammer rules.
0:39:26 > 0:39:29He should really know better, because he says he was inspired
0:39:29 > 0:39:32to start buying properties in the first place by our programme.
0:39:32 > 0:39:36He now has 11 other properties which he rents out,
0:39:36 > 0:39:39so at least he's got plenty of experience behind him.
0:39:39 > 0:39:41What are his plans for this one?
0:39:41 > 0:39:44Get it done, seven to ten days.
0:39:44 > 0:39:46- Seven to ten DAYS?- Yes.
0:39:46 > 0:39:48Right. To do what?
0:39:48 > 0:39:50Rip everything out.
0:39:50 > 0:39:53Put everything back in, and rent it out.
0:39:53 > 0:39:55What do you mean by "everything"?
0:39:55 > 0:39:57Back boilers, boiler,
0:39:57 > 0:39:59kitchen, bathroom,
0:39:59 > 0:40:02flooring. Everything out, and I'll freshen up. It's a good mission.
0:40:02 > 0:40:05- MARTIN LAUGHS - Yeah! No kidding!
0:40:05 > 0:40:07But it will be done.
0:40:07 > 0:40:10MUSIC: "Superman Theme" by John Williams
0:40:10 > 0:40:14Seven to ten days? He must be Superman!
0:40:14 > 0:40:17Within that time, Colin plans to paint the outside of the house,
0:40:17 > 0:40:20tidy the garden, and fix that guttering,
0:40:20 > 0:40:23which should stop any future damp in that bedroom cupboard.
0:40:23 > 0:40:26In the living room, he plans to replace the fire.
0:40:26 > 0:40:28And, as if that isn't enough,
0:40:28 > 0:40:31to re-plaster, redecorate, and carpet throughout.
0:40:31 > 0:40:34I feel exhausted just thinking about it.
0:40:34 > 0:40:36I reckon he'll be calling in quite a few favours
0:40:36 > 0:40:39from friends in the trade to help him.
0:40:43 > 0:40:47He's also going to get some special help from his daughter, Laura,
0:40:47 > 0:40:51because, in every superhero, there lies an Achilles heel,
0:40:51 > 0:40:54and with Colin, it's not kryptonite.
0:40:54 > 0:40:56I'm colour-blind.
0:40:56 > 0:40:59- Right.- So I'm not very good at picking paints or carpets.
0:40:59 > 0:41:01MARTIN LAUGHS
0:41:01 > 0:41:03So, she helps me pick the paint.
0:41:03 > 0:41:05She'll do all that kind of work with me.
0:41:05 > 0:41:08My boy, he'll come and help me strip the house.
0:41:08 > 0:41:11So how much are you going to spend on the renovation?
0:41:11 > 0:41:12£4,000.
0:41:12 > 0:41:13£4,000?!
0:41:15 > 0:41:19That budget seems as tight as the turnaround.
0:41:19 > 0:41:22Colin says the biggest expense will be the central heating,
0:41:22 > 0:41:26but he's managed to get a good price, even for that.
0:41:26 > 0:41:29Because I use the same guy all the time,
0:41:29 > 0:41:31I get it done for about £1,900.
0:41:31 > 0:41:33For a full gas central heating?
0:41:33 > 0:41:36- Six radiators and a boiler.- Right.
0:41:36 > 0:41:39Colin's confident about his budget and timescale.
0:41:39 > 0:41:42He's hoping to get around £450 a month in rent,
0:41:42 > 0:41:44which will give him a healthy yield,
0:41:44 > 0:41:46as long as he can reign in his costs.
0:41:46 > 0:41:49But he has many contacts in the trades to help,
0:41:49 > 0:41:51and a sharp eye for a bargain.
0:41:51 > 0:41:57# Yeah, somebody lend a helping hand. #
0:41:58 > 0:42:01Well, I guess, when we come back in two weeks' time,
0:42:01 > 0:42:03will it actually be done?
0:42:03 > 0:42:05Oh, yes. It will be done. And tenanted.
0:42:05 > 0:42:08- Right. And you'll have a tenant in here, as well?- Yes.
0:42:08 > 0:42:09Wow!
0:42:09 > 0:42:13Something tells me you're probably right! Good.
0:42:13 > 0:42:16Congratulations! Good luck with it.
0:42:16 > 0:42:21Well, I've heard a few ambitious timescales and budgets in my time,
0:42:21 > 0:42:24but Colin's is way up there.
0:42:24 > 0:42:27But something tells me, he's got a good chance of achieving it.
0:42:27 > 0:42:31Will he or won't he? You can find out later in the show.
0:42:34 > 0:42:37Martin, as we both know, the hard work really starts
0:42:37 > 0:42:38when you've bought the property.
0:42:38 > 0:42:41You've got to be prepared for a few surprises along the way.
0:42:41 > 0:42:44So did today's buyers encounter problems,
0:42:44 > 0:42:46or unearth hidden treasures?
0:42:46 > 0:42:48Let's go back and find out.
0:42:48 > 0:42:52Time now to return to Leyton, East London,
0:42:52 > 0:42:54where, earlier in the programme,
0:42:54 > 0:42:57Mahbub and his business partner, Tariq,
0:42:57 > 0:43:00bought the ground floor flat in this mid-terrace house
0:43:00 > 0:43:02for 165,000.
0:43:04 > 0:43:07Mahbub lives locally, works full-time in the public sector,
0:43:07 > 0:43:11and has four other buy-to-let properties.
0:43:12 > 0:43:15But he and Tariq intended to refurbish this flat,
0:43:15 > 0:43:17and sell it.
0:43:17 > 0:43:18Although the house had four rooms,
0:43:18 > 0:43:22there was no bathroom, just a solitary WC.
0:43:24 > 0:43:29But Mahbub proposed a new layout for the flat.
0:43:29 > 0:43:30You have a lounge at the front.
0:43:30 > 0:43:33Bedroom, second bedroom, a kitchen/diner.
0:43:33 > 0:43:36A shower room, which will be very high spec, and a toilet.
0:43:36 > 0:43:40Now, what concerns me is the access into the garden.
0:43:40 > 0:43:42So where will the door be?
0:43:42 > 0:43:44With all the properties in this area,
0:43:44 > 0:43:46the access to the garden
0:43:46 > 0:43:48is actually through the bathrooms or the shower rooms.
0:43:48 > 0:43:51So it's nothing unusual, with the layout of these properties here.
0:43:51 > 0:43:53I know you say that's nothing unusual,
0:43:53 > 0:43:55but you've really got to think about,
0:43:55 > 0:43:59do people want to go through the bathroom to get to the garden?
0:43:59 > 0:44:00There must be a better solution.
0:44:01 > 0:44:04Mahbub and I just weren't going to agree on this issue.
0:44:04 > 0:44:07But what's happened since we met?
0:44:08 > 0:44:12It's now four-and-a-half months later, and the flat is finished.
0:44:12 > 0:44:16It has replacement double-glazed windows, and a brand-new door.
0:44:18 > 0:44:21Inside, the hall's bright and welcoming...
0:44:23 > 0:44:25..the front living room's had a complete make over...
0:44:26 > 0:44:29..the period fireplace has been opened up and restored...
0:44:32 > 0:44:36..and the new window lets in loads of natural light.
0:44:36 > 0:44:39The original floorboards have been sanded and waxed,
0:44:39 > 0:44:41'and they look gorgeous.
0:44:41 > 0:44:45Moving along to the double bedroom, and the original fireplace,
0:44:45 > 0:44:47that's come up a treat!
0:44:49 > 0:44:52The swirly carpets are now ancient history,
0:44:52 > 0:44:54with more lovely floorboards on show instead.
0:44:57 > 0:44:59So far, so good.
0:44:59 > 0:45:03But what I'm really curious about is the back of the flat.
0:45:03 > 0:45:06Did Mahbub stick to his planned layout?
0:45:11 > 0:45:13When in the former kitchen, I spy
0:45:13 > 0:45:17something beginning with B and that's a bath!
0:45:18 > 0:45:23It's been squeezed into what was going to be a shower room.
0:45:23 > 0:45:24What a bonus!
0:45:26 > 0:45:31So that's the bathroom on the left and on the right is the separate WC,
0:45:31 > 0:45:34which has been fitted with a brand-new suite.
0:45:37 > 0:45:41That means the controversial back door to the garden
0:45:41 > 0:45:43remains firmly rooted in the same position,
0:45:43 > 0:45:46in the middle of the bathroom.
0:45:47 > 0:45:50This is the door that leads out from the bathroom.
0:45:50 > 0:45:52For privacy... We had a larger window,
0:45:52 > 0:45:55now we've got a smaller window. We used the original bricks.
0:45:55 > 0:45:58I don't think there's an issue of access
0:45:58 > 0:46:00to the garden from the bathroom
0:46:00 > 0:46:04because most properties round here have access through the bathroom to the garden.
0:46:05 > 0:46:07OK, so the door stays.
0:46:09 > 0:46:12Moving back indoors and that nondescript room
0:46:12 > 0:46:14is now a fantastic kitchen.
0:46:22 > 0:46:24The fire has gone but the chimney stack remains.
0:46:28 > 0:46:33The door that led to the small, single bedroom has been bricked up
0:46:33 > 0:46:36and is now accessed through the hall, which is much more practical.
0:46:38 > 0:46:41So now it's done, is Mahbub happy with the reconfiguration
0:46:41 > 0:46:44of the back of the flat?
0:46:44 > 0:46:47We had a choice whether to locate the bathroom here
0:46:47 > 0:46:48or in one of the other rooms.
0:46:48 > 0:46:51We chose this room because it was very easy
0:46:51 > 0:46:54to tackle the plumbing issues we had
0:46:54 > 0:46:58and the end product, I'm very pleased with.
0:46:58 > 0:47:01The garden still needs to be finished
0:47:01 > 0:47:03but will feature a patio area.
0:47:03 > 0:47:07Mahbub's done a lot of work himself but he's had a lot of help
0:47:07 > 0:47:11from his nephew, Rizwan, and has brought in experts when required.
0:47:13 > 0:47:16We had workmen come in and do what's needed
0:47:16 > 0:47:21legally for the electricity, gas, boiler installation.
0:47:21 > 0:47:23My dad's been here every day guiding me
0:47:23 > 0:47:26and my nephew's come in and done the finishing off.
0:47:26 > 0:47:30When we first got here, it was a great dump. There was nothing here.
0:47:30 > 0:47:33I've done all the painting, the vanishing on the doors,
0:47:33 > 0:47:35cleaned the floors
0:47:35 > 0:47:39and got some of the equipment they used to do this flat.
0:47:39 > 0:47:40It's come out all right.
0:47:40 > 0:47:43It's been good having the nephew around because we can joke
0:47:43 > 0:47:46and we have similar sort of tastes.
0:47:46 > 0:47:48He's great fun, he's a funny person,
0:47:48 > 0:47:50we have a great laugh whenever we work with each other.
0:47:50 > 0:47:54The ambitious two-month schedule that Mahbub's builder had planned
0:47:54 > 0:47:57actually ran into three.
0:47:57 > 0:48:01But what about the budget? Did that stay on track?
0:48:01 > 0:48:05£20,000 was the original budget. We spent 22,500
0:48:05 > 0:48:09and for that we've achieved a new kitchen, a new bathroom,
0:48:09 > 0:48:12double glazing, central heating. Basically, a brand-new flat.
0:48:12 > 0:48:16With the £165,000 he spent at auction,
0:48:16 > 0:48:21the total outlay is now £187,500.
0:48:21 > 0:48:23Has it been money well spent?
0:48:23 > 0:48:27Time to see what two local estate agents think of the flat
0:48:27 > 0:48:30and its prospects.
0:48:34 > 0:48:36Good flat. You know, clean, crisp,
0:48:36 > 0:48:39restored the original features which was a good move
0:48:39 > 0:48:42and a great location. Nice kitchen and good quality bathroom.
0:48:42 > 0:48:45The guy's done a really good job. I love the kitchen.
0:48:45 > 0:48:48The bathroom is a bit small, as is the second bedroom. However...
0:48:48 > 0:48:50I think he's done a very high standard of work.
0:48:50 > 0:48:52The only downside is that
0:48:52 > 0:48:54you've got a small second bedroom, which is not ideal
0:48:54 > 0:48:58and walking through the bathroom to get to the garden, again,
0:48:58 > 0:49:01may put some people off.
0:49:01 > 0:49:07Mahbub spent a total of £187,500 on the purchase and renovation.
0:49:07 > 0:49:12So how much is the place now worth on the resale market?
0:49:12 > 0:49:15I would place this property on the market for £220,000.
0:49:15 > 0:49:17We'd put this on the market for somewhere between
0:49:17 > 0:49:19£210,000 and £220,000.
0:49:19 > 0:49:23That valuation range would produce a gross profit,
0:49:23 > 0:49:31before the usual selling expenses, of between £22,500 and £32,500.
0:49:31 > 0:49:33Very good. Very nice figures.
0:49:33 > 0:49:36The range of figures I had in mind as well so I'm obviously very happy.
0:49:36 > 0:49:41Mahbub and his business partner, Tariq, plan to sell the flat
0:49:41 > 0:49:44but how much rental income could it produce?
0:49:44 > 0:49:47You could rent this property out for £1,000 per calendar month.
0:49:47 > 0:49:49You put this on the market for rental,
0:49:49 > 0:49:52you'd be looking at somewhere between £1,000 and £1,100 per month.
0:49:52 > 0:49:57Those rental figures could mean a yield of between 6.5% and 7%
0:49:57 > 0:49:59if Mahbub did decide to rent it out.
0:49:59 > 0:50:02How does he feel now the flat is finally finished?
0:50:05 > 0:50:09It's been a busy three months but something which I've enjoyed.
0:50:09 > 0:50:12Family have been great and really helped me.
0:50:12 > 0:50:15I look forward to doing up another project very soon.
0:50:19 > 0:50:21# One, two, three, four! #
0:50:22 > 0:50:26It's time now to head back to Ferguslie Park in Paisley,
0:50:26 > 0:50:28where earlier we met Colin.
0:50:28 > 0:50:30He bought this two-bedroom semi-detached house
0:50:30 > 0:50:33at auction for £35,000.
0:50:33 > 0:50:36This was to be Colin's 12th property,
0:50:36 > 0:50:38so he's no stranger to property developing.
0:50:42 > 0:50:45He planned to do a complete refurbishment here -
0:50:45 > 0:50:49new kitchen, new central heating, rewiring, painting external walls
0:50:49 > 0:50:52and also tackling those front and back gardens.
0:50:52 > 0:50:54# She's mighty fine and says she's all mine
0:50:54 > 0:50:57# And nothing's gonna bring me down... #
0:50:57 > 0:51:01Colin thought the biggest problem was going to be the decor
0:51:01 > 0:51:05and he'd need the help of his daughter, Laura, for a very reason.
0:51:05 > 0:51:07I'm colour-blind.
0:51:07 > 0:51:09- Right.- So I'm not very good at picking paint and carpets!
0:51:09 > 0:51:12I've tried, but it doesn't work.
0:51:12 > 0:51:16So she helps me pick the paint so she'll do all that work with me.
0:51:18 > 0:51:23Colin set a budget of £4,000 and a timescale of only seven to ten DAYS!
0:51:23 > 0:51:27Well, four WEEKS have now passed and we're back to see the results.
0:51:45 > 0:51:50Colin has done a fantastic job of the exterior of the property,
0:51:50 > 0:51:52and inside...
0:51:53 > 0:51:57..the living room's had a total overhaul. It now looks great, fresh
0:51:57 > 0:52:00and contemporary with new plasterboards, skirting and decor.
0:52:01 > 0:52:05In here, when we took the skirting off, we found dampness.
0:52:05 > 0:52:07Figured it was the gutter causing it.
0:52:07 > 0:52:10Stripped the walls back, put a false wall in here,
0:52:10 > 0:52:13tore the wood off this wall,
0:52:13 > 0:52:16redone the wall again, done this paint job.
0:52:16 > 0:52:19All we need to do now is flooring and that should finish us off.
0:52:20 > 0:52:23So no surprises - that greenery growing out of the guttering
0:52:23 > 0:52:26has caused water to come INTO the property.
0:52:26 > 0:52:28Once the house started to be stripped back,
0:52:28 > 0:52:30the full horror was revealed.
0:52:30 > 0:52:34Soon as we started taking skirtings off, paper off, we saw the walls
0:52:34 > 0:52:38falling down so there's a lot of plastering, sorting walls out.
0:52:38 > 0:52:43More work than anticipated then, but Colin's spirits weren't dampened.
0:52:43 > 0:52:48So what was his vision for the kitchen and bathroom on the ground floor?
0:52:48 > 0:52:51# One man, one goal
0:52:53 > 0:52:56# Ha! One mission
0:52:56 > 0:52:59# One heart, one soul
0:53:01 > 0:53:03# Just one solution.... #
0:53:03 > 0:53:07In the bathroom, I found three layers of tiles
0:53:07 > 0:53:10in the floor so I had to rip them up. I lifted the wall tiles,
0:53:10 > 0:53:12put a new bathroom suite in,
0:53:12 > 0:53:15gave it a new clean-up and that was it.
0:53:15 > 0:53:17Kitchen, complete rip-out.
0:53:19 > 0:53:22There's a combi boiler in there now, new central heating throughout.
0:53:22 > 0:53:25I've just made it easier for the person to clean.
0:53:25 > 0:53:26There's not a lot of clutter.
0:53:26 > 0:53:30Upstairs, both bedrooms have been completed redecorated.
0:53:30 > 0:53:33Gone is that old wallpaper and in its place,
0:53:33 > 0:53:37light colours which really brighten up these rooms.
0:53:37 > 0:53:41Colin has a new tenant lined up who wants to choose the flooring.
0:53:41 > 0:53:45Outside, Colin is still to drop the kerb for the off-street parking,
0:53:45 > 0:53:47and the damp caused by that pesky guttering
0:53:47 > 0:53:52has meant he can't paint the exterior walls just yet.
0:53:52 > 0:53:55In two months' time, we'll give it a fresh paint and brighten it all up.
0:53:55 > 0:53:57For the time being, we've put new chips down,
0:53:57 > 0:54:00done away with all the bushes and sheds at the back
0:54:00 > 0:54:03and put all these back so it's easily maintained.
0:54:03 > 0:54:06Colin seems to be thinking well ahead.
0:54:06 > 0:54:09He's spent £500 more than his four grand budget,
0:54:09 > 0:54:12what about that seven to ten-day timescale?
0:54:12 > 0:54:15I didn't think the walls would fall down,
0:54:15 > 0:54:18but it's taken us about 21 days now.
0:54:18 > 0:54:20My daughter helped with painting.
0:54:20 > 0:54:23My daughter's boyfriend's mum and dad came to help me,
0:54:23 > 0:54:26which I appreciate a lot.
0:54:26 > 0:54:29I just sat here and we just worked and worked.
0:54:29 > 0:54:32Colin was very dedicated to get all this work done
0:54:32 > 0:54:34in such a short space of time.
0:54:34 > 0:54:37# I've got my mind set on you
0:54:37 > 0:54:40# I've got my mind set on you... #
0:54:40 > 0:54:45So with a budget spend of £4,500 and a purchase price of £35,000,
0:54:45 > 0:54:49that's a combined outlay of £39,500.
0:54:55 > 0:54:57We invited along two local estate agents
0:54:57 > 0:55:00to get their thoughts on this place.
0:55:01 > 0:55:05The chap's done a good job to it. It's nice, fresh decoration.
0:55:05 > 0:55:08Kitchen's nice, bathroom's nice.
0:55:08 > 0:55:12There's a vast improvement with the garden, I feel.
0:55:12 > 0:55:14Front garden's nice, back garden's very nice,
0:55:14 > 0:55:17he's done a good job there and removed bits and bobs
0:55:17 > 0:55:19that were out there and it's looking great.
0:55:19 > 0:55:22The final finish in the kitchen and bathroom's OK.
0:55:22 > 0:55:25The kitchen especially, the bathroom has been a new suite put in.
0:55:25 > 0:55:26He's kept the existing tiles,
0:55:26 > 0:55:30but generally speaking, the finish is pretty good.
0:55:31 > 0:55:34Thumbs up then! So let's talk figures -
0:55:34 > 0:55:38what sort of resell value could you expect to achieve here?
0:55:38 > 0:55:40On the residential sales market,
0:55:40 > 0:55:43I'd expect it to achieve between £50,000 and £55,000.
0:55:43 > 0:55:44From a sale point of view,
0:55:44 > 0:55:47I would value the property somewhere in the region of £55,000.
0:55:47 > 0:55:51Not bad. So in the space of a month, there's a potential profit here
0:55:51 > 0:55:55of between £10,500 and £15,500
0:55:55 > 0:55:57minus the usual selling expenses.
0:55:57 > 0:56:00But Colin's got a tenant lined up,
0:56:00 > 0:56:02so what kind of rent should he be charging?
0:56:02 > 0:56:04From a rental point of view,
0:56:04 > 0:56:08I would value the property at a level of £475 per calendar month.
0:56:08 > 0:56:11I would expect the property to rent for £475 per calendar month.
0:56:11 > 0:56:14I've been offered 480,
0:56:14 > 0:56:18so as I say, I'm happy with 475-480.
0:56:18 > 0:56:19That's good value.
0:56:19 > 0:56:25The £480-a-month rent will give Colin a yield of 14.5%,
0:56:25 > 0:56:28making this a great investment property
0:56:28 > 0:56:30to add to his growing portfolio.
0:56:30 > 0:56:33No wonder he can't wait to get back to an auction to buy another one!
0:56:35 > 0:56:37What I love is the satisfaction you get.
0:56:37 > 0:56:40You don't see it yourself when you do it,
0:56:40 > 0:56:42it's when other people come in and go, "You've done this?
0:56:42 > 0:56:44"That's beautiful." But you don't see it.
0:56:47 > 0:56:50We hope you've enjoyed watching Homes Under the Hammer.
0:56:50 > 0:56:52Join us next time for more stories from the auction rooms.
0:56:52 > 0:56:54- See you then.- Goodbye.- Goodbye.
0:57:15 > 0:57:18Subtitles by Red Bee Media Ltd