0:00:02 > 0:00:06Hello. Buying property at auction isn't always as easy as it looks.
0:00:06 > 0:00:09But there is one element to the process you can eliminate -
0:00:09 > 0:00:13missing out the dreaded property chain by buying at auction.
0:00:39 > 0:00:43There are all sorts of properties selling at auctions these days.
0:00:43 > 0:00:47There certainly are and it's the wide variety that keeps us interested.
0:00:47 > 0:00:51Here are the three properties that went under the hammer on today's show.
0:00:52 > 0:00:56'You'll need to watch your step in this Cheshire cottage.'
0:00:57 > 0:01:01I'm not absolutely sure, but they seem to be at an angle.
0:01:02 > 0:01:09'I'm all for open-plan living, but this Gravesend property has taken it a bit far.'
0:01:09 > 0:01:11Boy, is it spacious!
0:01:12 > 0:01:18'And in Shropshire, you'll be needing rubber gloves in this house.'
0:01:18 > 0:01:20That's definitely, uh...
0:01:20 > 0:01:22smoke damage.
0:01:23 > 0:01:26'All of these properties went to auction.
0:01:26 > 0:01:32'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:36 > 0:01:41I'm in Cheshire in the rural parish of Cranage.
0:01:41 > 0:01:46Well, it's interesting that it's a parish because there's no church, there's no local school.
0:01:46 > 0:01:50It's a bit light on all sorts of amenities, so why is it so popular?
0:01:50 > 0:01:56Just take a look around - a leafy suburb, easy commuting distance to Manchester, it's about 30 miles.
0:01:56 > 0:01:58You've got the M6, the M56.
0:01:58 > 0:02:05I mean, a four-bedroomed house here in good condition is going to cost you 600,000 to 700,000 quid.
0:02:05 > 0:02:07# This is the life
0:02:09 > 0:02:12# Here's where the living is
0:02:12 > 0:02:15# This is the life
0:02:15 > 0:02:17# Baby, you're there... #
0:02:17 > 0:02:21You may think that's a lot of money and you'd be right,
0:02:21 > 0:02:25but properties don't often come up for sale around here,
0:02:25 > 0:02:30so there would have been some competitive bidding for this lot.
0:02:30 > 0:02:35Well, the property that was up for auction was this - a four-bedroomed, detached cottage.
0:02:35 > 0:02:40It doesn't look too bad from the outside. It had a guide price of 200,000 quid,
0:02:40 > 0:02:45but what's much more exciting is the plot it sits on - almost half an acre.
0:02:45 > 0:02:49Hmm, more of that later. For now, let's take a look inside.
0:02:49 > 0:02:53The entrance to this property is sort of back to front.
0:02:53 > 0:02:56The front garden sits on a very, very busy road,
0:02:56 > 0:02:58so the house turns its back on it.
0:03:02 > 0:03:07OK, slightly disappointing entrance into this little porch. Very dark and dingy.
0:03:07 > 0:03:11The kitchen, if that's what you can call it, virtually non-existent.
0:03:11 > 0:03:17Through to a downstairs loo there which is quite nice, then through into a second kind of entrance area.
0:03:17 > 0:03:20Again it feels very cramped and dark and horrible
0:03:20 > 0:03:24and looking round the property, it's not in that brilliant a state.
0:03:24 > 0:03:27Sort of front sitting room there with an open fire.
0:03:27 > 0:03:30Wow! That's not good.
0:03:32 > 0:03:36We'll investigate that in a minute, but through to the rear sitting room
0:03:36 > 0:03:41and you don't have to be a rocket scientist to figure something's not quite right.
0:03:41 > 0:03:44There's cracks all over the place, the ceiling's blown.
0:03:44 > 0:03:49Damp. It's in such a bad state, it's almost impossible to see it. What a huge disappointment!
0:03:50 > 0:03:54Oh, dear. This really is a house of horror.
0:03:54 > 0:03:59The truth is, I'm not sure anyone's going to make any money from doing up a place like this.
0:03:59 > 0:04:03Now, let's take a good look at those dodgy, dangerous stairs.
0:04:03 > 0:04:10I mean, the stairs here, I'm not absolutely sure, but they seem to be at an angle
0:04:10 > 0:04:16and I'm getting extremely worried about the structure of this place, never mind just what it looks like.
0:04:16 > 0:04:18Let's see what it's like upstairs.
0:04:23 > 0:04:25So far, not so good -
0:04:25 > 0:04:30cracks, bowed ceilings, peeling wallpaper and possible subsidence issues.
0:04:30 > 0:04:35This property has got the lot and it carries on upstairs.
0:04:37 > 0:04:41So inside is disappointing, but what about outside?
0:04:41 > 0:04:46Every rural house should have a garden and this one could be used for all sorts of purposes.
0:04:46 > 0:04:52But for me, the garden isn't just something you'd have as grass or somewhere to grow your vegetables.
0:04:52 > 0:04:55This is the key to this property making you loads of money
0:04:55 > 0:05:01because I suggest you knock the house down and build something suitably grand in its place.
0:05:01 > 0:05:07The good news is that applications have gone in, at least three in recent times in this very street,
0:05:07 > 0:05:13for similar kind of plans and they have been viewed reasonably favourably by the planners.
0:05:13 > 0:05:15So what do you do? You knock it down,
0:05:15 > 0:05:20you maybe spend £200,000, £300,000 building a fantastic house here
0:05:20 > 0:05:23and it's in a good street, great location.
0:05:23 > 0:05:26We're into making telephone numbers.
0:05:26 > 0:05:31So some serious cash to be made here if you get permission to develop the land
0:05:31 > 0:05:36or, failing that, if done up with the existing cottage extended.
0:05:36 > 0:05:40Let's talk to a local estate agent to find out what he would do.
0:05:40 > 0:05:43The potential, it could be twofold.
0:05:43 > 0:05:47The cottage here could be modernised and updated from what we see today.
0:05:47 > 0:05:51The alternative is the plot does allow, subject to planning,
0:05:51 > 0:05:55for the cottage to be re-sited. It cries out to be moved into the centre of the plot,
0:05:55 > 0:05:59but alternatively, you could retain and extend what is here today.
0:05:59 > 0:06:06If the buyers take the renovation route and extend the cottage, what sort of return could they expect?
0:06:06 > 0:06:12If the cottage was renovated and extended to give it four bedrooms, two bathrooms,
0:06:12 > 0:06:16you would have a cottage that's worth somewhere in the region of £550,000.
0:06:16 > 0:06:18What about a new build?
0:06:18 > 0:06:22If you're able to gain planning permission to put a new property here
0:06:22 > 0:06:28to give four bedrooms, two, three bathrooms, you could be looking at a figure around £650,000 to £700,000
0:06:28 > 0:06:30on this plot.
0:06:30 > 0:06:34The rental market is also buoyant in this neighbourhood.
0:06:34 > 0:06:40The estate agent thinks the re-developed site could command a rent of £2,500 a month.
0:06:42 > 0:06:46Well, there's work to be done, but a nice enough little cottage
0:06:46 > 0:06:51that if it was restored, on the open market, would probably fetch double what the guide price was.
0:06:51 > 0:06:58Or why don't you make the most of that plot and build something suitably impressive in its place?
0:06:58 > 0:07:02Lots of options. Let's see who fancied it when it went under the hammer.
0:07:03 > 0:07:07Lot number 3, ladies and gentlemen, is a detached cottage
0:07:07 > 0:07:09on an excellent site of nearly half an acre.
0:07:09 > 0:07:12Where are you going to start me on this one? 200 and away?
0:07:12 > 0:07:16Come on, you've not just come here to look at me.
0:07:16 > 0:07:19150, all right. 150,000 I've got.
0:07:19 > 0:07:23And 5. At 155. 155. 160 now.
0:07:23 > 0:07:27At 160 I've got. And 5. 165, thank you.
0:07:27 > 0:07:29170? 170.
0:07:29 > 0:07:32At 170. At 170...
0:07:32 > 0:07:33And 5. 175.
0:07:33 > 0:07:36180. At 180... And 5.
0:07:36 > 0:07:39At 185. At 185,000.
0:07:39 > 0:07:41At 190.
0:07:41 > 0:07:44At 190,000. 2½? 2½.
0:07:44 > 0:07:47At 192,500.
0:07:47 > 0:07:50Are we all done? At 195, I've got it.
0:07:50 > 0:07:52197½. At 197½.
0:07:52 > 0:07:54200 quickly?
0:07:54 > 0:07:57At 197½, the bid is on my right.
0:07:57 > 0:07:59At 197½...
0:07:59 > 0:08:01200. At 200,000. At 200,000.
0:08:01 > 0:08:06202½. At 202,500 once...
0:08:06 > 0:08:08Twice.
0:08:08 > 0:08:13I'm selling to the highest bidder at 202,500.
0:08:13 > 0:08:14Yours, sir.
0:08:14 > 0:08:19'That final bid was made by Chris on behalf of the actual buyers -
0:08:19 > 0:08:23'John, a commercial pilot, and his new wife Cathy, a cabin manager.
0:08:24 > 0:08:29'They paid £202,500 for this property and they're on cloud nine.'
0:08:30 > 0:08:33# On the wings of love
0:08:33 > 0:08:40# Only the two of us together flying high... #
0:08:40 > 0:08:46Cathy, John, lovely to meet you both. We didn't see you in the auction. What's going on there?
0:08:46 > 0:08:49We were both rostered... We both work for an airline,
0:08:49 > 0:08:54so we scratched our heads and tried to think of someone we could send to the auction for us
0:08:54 > 0:09:00and came up with a very good friend of ours who very bravely said he would go and bid on our behalf.
0:09:00 > 0:09:05- It's not so bad when you're spending somebody else's money. - We gave him a very strict limit.
0:09:05 > 0:09:09- And what was that limit?- 250.
0:09:09 > 0:09:10- 250?!- Yeah.
0:09:10 > 0:09:16- Yeah.- So you must have been absolutely thrilled to bits when you heard you got it for what you did.
0:09:16 > 0:09:21Well, we were, but I didn't find out until... I was in the air at the time of the auction.
0:09:21 > 0:09:26I got on the stand, turned my phone on, absolutely shaking cos I wanted to know if we'd got it.
0:09:26 > 0:09:28He said, "Are you sitting down?"
0:09:28 > 0:09:33And then I just had a little thought and he said, "You got it. Guess what for?"
0:09:33 > 0:09:38And I said, "Oh, 240." He said, "No, 202½."
0:09:38 > 0:09:42- Amazing, isn't it?- Wow! - I was absolutely amazed.
0:09:42 > 0:09:44# Fly me to the moon
0:09:44 > 0:09:49# Let me play among the stars... #
0:09:49 > 0:09:52'No wonder John and Cathy were over the moon!
0:09:52 > 0:09:56'Getting this place for way under their budget is going to be a godsend
0:09:56 > 0:10:01'because they've got big plans for a fabulous new home here.'
0:10:01 > 0:10:04# Hold my hand... #
0:10:04 > 0:10:08We really want to do a fresh build. We didn't want this house at all.
0:10:08 > 0:10:10We wanted to start from scratch.
0:10:10 > 0:10:15We live in this area anyway, so it's absolutely perfect to stay here.
0:10:15 > 0:10:17The house then didn't appeal at all?
0:10:17 > 0:10:21We looked at it and decided there was too much work to be done.
0:10:21 > 0:10:24We have a very good friend who's our architect.
0:10:24 > 0:10:30He's been to see the planners on our behalf before the auction to get an idea of what they would allow
0:10:30 > 0:10:35and indeed they said that we could build on this plot on a different footprint
0:10:35 > 0:10:38and then demolish this afterwards.
0:10:38 > 0:10:43- What do you hope for for the house? - I'm excited about the bathrooms. I want a big bathroom.
0:10:43 > 0:10:49And I've always wanted a dressing room. I'd definitely like one of those and a fabulous kitchen.
0:10:49 > 0:10:51I'm just excited about all of it.
0:10:51 > 0:10:54- And designing it how you want? - Absolutely, yes. Definitely.
0:10:54 > 0:10:59- I think it's about time. Let's go outside and take a look at the plans.- OK.- Thank you.
0:10:59 > 0:11:02# When a small slice of heaven's all
0:11:02 > 0:11:07# You could ever hope to find... #
0:11:07 > 0:11:13'It all sounds grand, ambitious and well worth the trouble and expense for newly weds John and Cathy.
0:11:13 > 0:11:19'The proposed house will be their first place together and their dream home for years to come.'
0:11:19 > 0:11:25- So you'll come in through a porch and into what we want to make a dining hall.- That's interesting.
0:11:25 > 0:11:27With a galleried landing as well.
0:11:27 > 0:11:32- So up from the galleried landing... - Oh, nice.- Then this is our area, so to speak.
0:11:32 > 0:11:34- Ah!- Cathy's dressing room.
0:11:34 > 0:11:39- And built-in...walk-in wardrobes. - You'll have one wardrobe and she'll have 15(!)
0:11:39 > 0:11:45So when we're working shifts, in the middle of the night, we don't wake each other up.
0:11:45 > 0:11:48- So how many square feet in total? - Around 3,000 square feet.
0:11:48 > 0:11:53- So your build cost is about £300,000?- Yeah.- £100 a square foot?
0:11:53 > 0:11:55- Good quality then?- Yes.
0:11:55 > 0:11:58- Yeah, I'm going to do a lot of the managing of it.- Right.
0:11:58 > 0:12:02Rather than have a contractor in from beginning to end. That's the plan.
0:12:02 > 0:12:05- It's also useful to live here while that happens.- Yeah.
0:12:05 > 0:12:10- You'll go through a bit of squalor before you end up at, basically, Dallas?- Hopefully.
0:12:10 > 0:12:13TV THEME MUSIC: "Dallas"
0:12:13 > 0:12:18'It's a well thought out layout which caters perfectly for their needs
0:12:18 > 0:12:21'and presumably, they've got time on their side too.'
0:12:21 > 0:12:25So what's the kind of timescale for sorting this out then?
0:12:25 > 0:12:30Right, we reckon planning will take about three months or so to get sorted.
0:12:30 > 0:12:35A year from now, we hope to have a house ready to move into.
0:12:35 > 0:12:39- So we'd better leave it as long as possible before we come back? - I think so.
0:12:39 > 0:12:42- This will be worth seeing. - I hope so.- I'm sure it will.
0:12:42 > 0:12:46- Congratulations.- Thank you.- I look forward to seeing how you get on.
0:12:46 > 0:12:50Well, what an amazing project this could turn out to be -
0:12:50 > 0:12:55John and Cathy embarking on building their dream property.
0:12:55 > 0:13:00Still, a lot of work to do before they can be sitting in their kitchen sipping their first cappuccino.
0:13:00 > 0:13:04Planning regulations? Problems with builders?
0:13:04 > 0:13:08All sorts of issues could come up. You never know with building projects.
0:13:08 > 0:13:14I think they'll be all right. Still, the only way to find out is to join us later in the show.
0:13:18 > 0:13:22Gravesend in Kent records some of the highest temperatures in the UK.
0:13:22 > 0:13:27Back in 2003, it hit a record-breaking 38.1 degrees Celsius.
0:13:27 > 0:13:34And the properties are hot too because the fastest trains take just 23 minutes
0:13:34 > 0:13:36to get to St Pancras International,
0:13:36 > 0:13:40making this Kentish outpost very desirable commuter territory.
0:13:44 > 0:13:47So a few miles south of the town centre
0:13:47 > 0:13:51finds me on a 1970s, ex-local authority estate.
0:13:51 > 0:13:56Now, the houses are attractive enough, nice and close to decent road links
0:13:56 > 0:13:59and a good bit cheaper than houses closer to town.
0:13:59 > 0:14:05But that doesn't quite explain the low guide price for this four-bedroomed end of terrace -
0:14:05 > 0:14:08only 115,000 to 125,000.
0:14:08 > 0:14:14The catalogue description might, though, with its "in need of refurbishment" warning.
0:14:14 > 0:14:19And these boarded-up windows give us a bit more of a clue as to what's in store.
0:14:20 > 0:14:26Well, a boarded-up window doesn't necessarily mean a house is in bad condition,
0:14:26 > 0:14:31but I think it's safe to assume we're not in for a show-stopping show home.
0:14:31 > 0:14:32Oh!
0:14:32 > 0:14:36Well, this is a new take on open-plan living.
0:14:36 > 0:14:39Oh, hello-o! It's really echoey in here.
0:14:39 > 0:14:44And if you want to see how 1970s houses are constructed,
0:14:44 > 0:14:48well, this is the house for you, ladies and gentlemen.
0:14:48 > 0:14:50Look, it's completely open.
0:14:50 > 0:14:54It's as though somebody has started ripping it apart and not quite finished.
0:14:54 > 0:14:58It feels a bit like a photo shoot or a film set,
0:14:58 > 0:15:01but boy, is it spacious!
0:15:01 > 0:15:08You've got a lovely living area here with huge windows ceiling to floor, letting loads of light in,
0:15:08 > 0:15:11once those ugly shutters come off.
0:15:11 > 0:15:14You've got a dining space here which is fantastic.
0:15:14 > 0:15:19A bit of a 1970s serving hatch going through to the kitchen over there,
0:15:19 > 0:15:21which, you know, I could take or leave,
0:15:21 > 0:15:25but there's loads you could do with this, there's so much floor space.
0:15:25 > 0:15:28I would think about turning this around,
0:15:28 > 0:15:32perhaps putting a wall across here because it's far too open at the moment
0:15:32 > 0:15:38and having an open-plan kitchen/dining area with the doors leading out to the garden.
0:15:38 > 0:15:42It's a bit of a state, but it quite excites me seeing a house like this.
0:15:45 > 0:15:49For me, creating a kitchen-diner would be the perfect way forward.
0:15:49 > 0:15:54The condition of the ground floor already makes it primed for reconfiguring the layout.
0:15:56 > 0:16:00# Stripped away, so you can hardly tell
0:16:00 > 0:16:04# Leaving nothing but the shell
0:16:06 > 0:16:09# Nothing but the shell... #
0:16:09 > 0:16:15Although the windows are shuttered, a quick peek over the side wall shows a nice, little space out back
0:16:15 > 0:16:17with the added bonus of a garage.
0:16:17 > 0:16:22Back inside, there are another couple of boxes ticked with the first, a downstairs loo,
0:16:22 > 0:16:27and the second, well, something I didn't expect to see from this angle.
0:16:27 > 0:16:31I'm glad to see there's a working boiler upstairs.
0:16:31 > 0:16:37You shouldn't really be able to see it from here. Oh, well, you can't have it all.
0:16:37 > 0:16:41In contrast to downstairs, upstairs is almost perfect.
0:16:41 > 0:16:45There are four bedrooms. Three are a fair size and in good condition,
0:16:45 > 0:16:49though one room seems to be going the way of the ground floor.
0:16:50 > 0:16:54And there's a family-sized bathroom in need of a new suite.
0:16:54 > 0:17:01So the house is bare, basic and far from beautiful, but could it boost your bank balance?
0:17:01 > 0:17:07When you're viewing property, you have to put any delicate sensibilities aside.
0:17:07 > 0:17:13The lot might be lacking walls and unloved, but that is what could make it a very sensible investment.
0:17:13 > 0:17:17It was built in the 1970s, so it's unlikely to have structural issues.
0:17:17 > 0:17:22It's square, it's practical, it's easy to see what needs to be done to bring it up to scratch.
0:17:22 > 0:17:27At the moment, it's just the bare bones of a home and it's not very pleasant,
0:17:27 > 0:17:32but if you're prepared to hold your breath and take the plunge, you could have an instant profit.
0:17:37 > 0:17:43So forget the looks. It's really the blank canvas and potential that's on offer here.
0:17:43 > 0:17:50But with a guide price of 115,000 to 125,000, is there a good investment to be made here?
0:17:50 > 0:17:53I asked along a local estate agent to see what he thought
0:17:53 > 0:17:55of this four-bed house in Gravesend.
0:17:55 > 0:18:01There's a lot of money to be spent on this, really. We need new walls, new ceilings, new kitchen.
0:18:01 > 0:18:06There's quite a lot of work, probably the wrong side of £25,000.
0:18:06 > 0:18:11If the property went for that upper guide price of 125,000,
0:18:11 > 0:18:17then that renovation could make the potential total outlay here about £150,000.
0:18:17 > 0:18:20So could a re-sale recover that cost?
0:18:20 > 0:18:23Fully renovated, certainly 185,000.
0:18:23 > 0:18:27What sort of rental return could the house expect?
0:18:27 > 0:18:31In good condition, you would get in excess of £900 a month for this property.
0:18:31 > 0:18:37This is a very reasonably priced, four-bedroomed home in an improving part of Kent.
0:18:37 > 0:18:43It needs more than a lick of paint, but at that guide price, there's money to be made for somebody.
0:18:43 > 0:18:45Let's see who that was at the auction.
0:18:48 > 0:18:51Without any further delay, let's move on to Lot 57.
0:18:51 > 0:18:57Start me at 110. I don't mind where we start. £110,000 to get me under way? 110? 110?
0:18:57 > 0:19:00On my left at 110,000. Now 115?
0:19:00 > 0:19:02115? 115 I have.
0:19:02 > 0:19:05120 now, it's against you. 120 I have.
0:19:05 > 0:19:10And 5 now. At 125. At 125 sitting in a fresh place.
0:19:10 > 0:19:14And 130 now, it's against you on the left-hand side. 130. And 2?
0:19:14 > 0:19:16132. And 4?
0:19:16 > 0:19:19134. And 6? 136.
0:19:19 > 0:19:23And 8 now, it's against you. 138? 138 is with you.
0:19:23 > 0:19:25140?
0:19:25 > 0:19:28140, standing right at the back. 140.
0:19:28 > 0:19:30And 2, it's against you. 142?
0:19:30 > 0:19:35141. Nearly had it. 142 straight away. And 3 again?
0:19:35 > 0:19:39143. Another bid, 143 now. And 4?
0:19:39 > 0:19:43144. 145? 145. And 6?
0:19:43 > 0:19:46146 I've got. And 7, it's against you.
0:19:46 > 0:19:52No? At £146,000, back to the gentleman on the right-hand side at the back then for the first time...
0:19:52 > 0:19:56At £146,000 for the second. Make no mistake, third and final time...
0:19:56 > 0:19:59BANGS GAVEL It's yours, sir, for 146,000.
0:19:59 > 0:20:05'That successful bidder, who got the lot for 146,000, was Pete.
0:20:05 > 0:20:10'He's a Gravesend local. He used to run a pub,
0:20:10 > 0:20:14'but since 1990, has been developing properties.
0:20:14 > 0:20:20'I met him at the house to find out what he was planning to do with his new brew.'
0:20:20 > 0:20:26- Pete, congratulations.- Thank you. - What appealed to you about this house in particular?- The location.
0:20:27 > 0:20:30You've got the A2, M2 very close,
0:20:30 > 0:20:33so communication-wise, it's ideal for commuters.
0:20:33 > 0:20:38You don't buy a four-bedroom in Gravesend this size for that sort of money.
0:20:38 > 0:20:43- So how well do you know Gravesend? - I've lived here all my life. I went to school here.
0:20:43 > 0:20:46My dad's got a business here, other properties here.
0:20:46 > 0:20:51- So what's your background? - I was in the pub trade with my father and my brother.
0:20:51 > 0:20:54My father used to buy properties at that time.
0:20:54 > 0:20:59We renovated the pub, we bought the shop next door to it, turned that into a restaurant.
0:20:59 > 0:21:04And what we started doing there, we just leased the pub and the restaurant out
0:21:04 > 0:21:06and started taking things easy.
0:21:06 > 0:21:11And properties that come up that are worth buying, we just tinker about with them.
0:21:11 > 0:21:15- Are you telling me you've been having a bit of a rest of late?- Yes.
0:21:15 > 0:21:19- You've not been having too much on? - No.- That is all going to change now.
0:21:19 > 0:21:24Well, when I say not too much on, keeping on top of the properties that we have,
0:21:24 > 0:21:28keeping them maintained and any little bits and bobs that need doing,
0:21:28 > 0:21:30there's always something to do.
0:21:30 > 0:21:36'And how better to do a lasting job on this place than with a hands-on approach by Pete himself,
0:21:36 > 0:21:40'plus much of the trades work being done by friends and family?
0:21:40 > 0:21:43'So what does he intend to do here?'
0:21:43 > 0:21:45First of all, to do the electrics.
0:21:45 > 0:21:50It needs a new kitchen. All the windows have to be changed, the front door and everything else.
0:21:50 > 0:21:54Clean the back garden out, do the bathroom upstairs...
0:21:54 > 0:21:57and smarten it up, really.
0:21:57 > 0:22:01- Basically, that is everything!- Yeah, it is everything. The whole house.
0:22:01 > 0:22:07- That's one long list.- It is. - You have got to start from scratch with this property.- I have, yes.
0:22:07 > 0:22:13What about the fact that it's very open-plan at the moment? It's just one room, isn't it?
0:22:13 > 0:22:17I'll probably keep the kitchen doorway. I'll partition that back off.
0:22:17 > 0:22:23The French doors in the kitchen have got to go. I'll just have a normal window or a window with a door.
0:22:23 > 0:22:25This here, I'll keep as it is.
0:22:25 > 0:22:30And I'll have a fair-sized kitchen, a dining area and a living room area.
0:22:30 > 0:22:34There's not much to do upstairs apart from the windows and decorating.
0:22:34 > 0:22:39As far as the layout goes, I've thought about reinstating the wall
0:22:39 > 0:22:41where the French doors are behind you
0:22:41 > 0:22:47and taking all of this down and turning it around, so that you've got your kitchen, your dining room,
0:22:47 > 0:22:52so all of this area becomes one room with access out to the garden.
0:22:52 > 0:22:56How about doing it that way? I think that could work well.
0:22:56 > 0:23:02Well, yes, but I think more people like to have a living room area
0:23:02 > 0:23:06and a dining room area separate from the kitchen.
0:23:06 > 0:23:09Kitchen-diners are going out of fashion now.
0:23:09 > 0:23:13No, when you've got kids and family, people like to sit together while people are cooking.
0:23:13 > 0:23:19If you've got kids, especially being a four-bedroom house, you don't want the children in the kitchen.
0:23:19 > 0:23:24While Mum's cooking, she needs to keep an eye on her kids. I don't know about that.
0:23:24 > 0:23:26You can stick the kids over here. It'd be OK.
0:23:26 > 0:23:29'I think we'll have to agree to disagree on that.
0:23:31 > 0:23:37'But Pete has given himself an ample budget of 20,000 and three months to do the renovation work.
0:23:37 > 0:23:43'So with plans to put it on the rental market, what sort of income does he hope to make here?'
0:23:43 > 0:23:48Between £1,000 and £1,100. Four-bedroom properties, there's not many on the market.
0:23:49 > 0:23:51And, uh...
0:23:51 > 0:23:55Even £1,000 to £1,100, you could be pushing that towards the £1,200 mark.
0:23:55 > 0:24:02- Pete, good luck with this. It's going to be very interesting, seeing what you do inside.- OK.- Thank you.
0:24:02 > 0:24:03Thank you.
0:24:03 > 0:24:09Pete is right. There is always something to do when you have a property portfolio.
0:24:09 > 0:24:15And I think this house will certainly give him a sense of achievement when it's finished.
0:24:15 > 0:24:20But will he achieve the rental he wants? I'm not sure he will, no matter how special it is.
0:24:20 > 0:24:23You can find out later in the show.
0:24:24 > 0:24:29'Coming up, the problems in this Shropshire semi aren't just on the inside.'
0:24:29 > 0:24:33You can't get in through the front door which is never a good start.
0:24:34 > 0:24:39'We return to Gravesend where new walls were just the beginning.'
0:24:39 > 0:24:44Seeing the plaster and paint going on, it was getting better and better.
0:24:45 > 0:24:49'But first, we're back to see if the early bird has been busy.'
0:24:49 > 0:24:54He worked extremely hard. When he wasn't flying, he was up at six o'clock.
0:24:57 > 0:25:01'Earlier in the highly desirable rural parish of Cranage in Cheshire,
0:25:01 > 0:25:06'we met commercial pilot John and his new wife Cathy, a cabin manager.
0:25:10 > 0:25:16'The high-flying couple purchased this dilapidated cottage at auction for £202,500.
0:25:16 > 0:25:21'The condition of the place didn't concern them at all because they planned to demolish it.
0:25:21 > 0:25:24'For them, it was all about the potential of the plot
0:25:24 > 0:25:28'where they planned to build their dream home from the ground up.'
0:25:30 > 0:25:35- A year from now, we hope to have a house ready to move into.- Right.
0:25:35 > 0:25:39- We'd better leave it as long as possible before we come back.- I think so.
0:25:39 > 0:25:43- This will be worth seeing. - I hope so.- I'm sure it will.
0:25:43 > 0:25:45'So has the wait been worthwhile?
0:25:45 > 0:25:50'Not one year, but two years and four months later, we're back
0:25:50 > 0:25:53'to see if they've gone from dream designs to dream pad.
0:25:53 > 0:25:59'Well, the cottage is still standing, but next to it is something truly impressive.'
0:26:13 > 0:26:16An absolutely heavenly, five-bedroomed house.
0:26:18 > 0:26:21The view from the garden is just as grand.
0:26:29 > 0:26:33And just feast your eyes on the kitchen-dining area.
0:26:39 > 0:26:43There's a small, cosy TV viewing area.
0:26:45 > 0:26:50But the real job of relaxing is to be done in this marvellous-looking lounge.
0:26:52 > 0:26:58The house feels beautifully spacious and light thanks to this splendid staircase...
0:27:02 > 0:27:05..that leads to five, great-sized double bedrooms.
0:27:09 > 0:27:12Three of them with their own en-suite facilities.
0:27:13 > 0:27:17John and Cathy have created a stunning new home
0:27:17 > 0:27:20despite a few changes to their plans along the way
0:27:20 > 0:27:23as John explains in the annexe.
0:27:23 > 0:27:28This was originally designed as a self-contained living area for my mother,
0:27:28 > 0:27:34but unfortunately, due to health issues, it doesn't look like she'll be able to come and live with us now.
0:27:34 > 0:27:40This was going to be the living area and a kitchen and, in fact, the plumbing is still in the walls.
0:27:40 > 0:27:44So now we're going to make this into a dining room
0:27:44 > 0:27:47and a self-contained extra bedroom and bathroom.
0:27:47 > 0:27:52Ideal for when they invite friends or family around to visit.
0:27:52 > 0:27:56The house has 22 rooms in all with an office space for the couple,
0:27:56 > 0:28:00somewhere to beat out a steady rhythm
0:28:00 > 0:28:05and at the top, two attic rooms yet to be converted.
0:28:05 > 0:28:11On the middle floor, something Cathy was dead keen on was her own dressing room,
0:28:11 > 0:28:14but when it came to incorporating it,
0:28:14 > 0:28:16she had a change of heart.
0:28:17 > 0:28:20This room was supposed to be a dressing room,
0:28:20 > 0:28:24but it didn't lend itself to that with the position of the window.
0:28:24 > 0:28:26We wanted a large bath and a shower,
0:28:26 > 0:28:30so the concept was really to make this into a luxurious bathing area
0:28:30 > 0:28:36and we're thrilled to bits with it because it's got heaps of light and it's just exactly what we wanted.
0:28:36 > 0:28:43I'm not surprised they're thrilled, especially as they've not long moved in following planning delays.
0:28:43 > 0:28:48Those meant they've spent the best part of the last two years living in the cottage,
0:28:48 > 0:28:51which was the hardest part of the process.
0:28:51 > 0:28:55I felt quite tearful at times, particularly when it was very cold.
0:28:55 > 0:28:59Now we're actually in here, it's so nice and it was really worth it.
0:29:01 > 0:29:06But now they've moved into their new house, the old cottage will be demolished in the next few months.
0:29:06 > 0:29:12Then they can make this place complete by landscaping the huge garden.
0:29:14 > 0:29:19Despite a busy flying schedule, John project managed this himself.
0:29:19 > 0:29:23With his sons Jordan and Chris helping with the loft insulation,
0:29:23 > 0:29:26he put some graft in to boot.
0:29:27 > 0:29:30I did some...minor works myself.
0:29:30 > 0:29:34Yes, I put in a lot of insulation around the place.
0:29:34 > 0:29:37I don't think I ever want to see any insulation again.
0:29:37 > 0:29:44- When he wasn't flying, he was up at six in the morning. I was very, very proud of you.- Ahh.
0:29:44 > 0:29:50I'm so pleased for John and Cathy. They've put their hearts and souls into making this their ideal home,
0:29:50 > 0:29:54which they'd planned on building for £300,000.
0:29:54 > 0:29:56And they spent £305,000.
0:29:57 > 0:30:04To be that close to budget is impressive. Now that they're nearly done, is it time for a housewarming?
0:30:04 > 0:30:10- No.- No. We thought we might have a house cooling party before we knock the other one down!
0:30:10 > 0:30:14No, we've had no party yet, but we will.
0:30:14 > 0:30:20We've got lots of friends we owe lots of meals to, who looked after us while we were building.
0:30:20 > 0:30:23So yeah, guys, you'll be coming along soon.
0:30:23 > 0:30:28So whilst the invites to friends aren't being handed out just yet,
0:30:28 > 0:30:32we've handed them out to two local estate agents to see what they make
0:30:32 > 0:30:35of John and Cathy's dream home.
0:30:35 > 0:30:37The house is absolutely fabulous.
0:30:37 > 0:30:42It's a complete transformation. A really good use of the site.
0:30:42 > 0:30:46The style, the spec, right the way through, really is first class.
0:30:46 > 0:30:49It's a very impressive building.
0:30:49 > 0:30:54The grounds, the way they have positioned it, and the style is very attractive.
0:30:54 > 0:30:59High praise indeed, but have they paid a high price?
0:30:59 > 0:31:04The property and original plot cost John and Cathy £202,500.
0:31:05 > 0:31:10They spent £305,000 on the build, including fees.
0:31:10 > 0:31:15Both estate agents agree it could rent out for £2,500 per calendar month,
0:31:15 > 0:31:21but what we really want to know is how much the property is worth on the re-sale market.
0:31:21 > 0:31:26Remember, their total outlay is £507,500.
0:31:27 > 0:31:33You'd market it at £795,000 to £799,000.
0:31:33 > 0:31:40Under the current market conditions, if I was putting it on the market, I'd be looking to ask £795,000.
0:31:40 > 0:31:44- I think that's excellent. - Yes, I was hoping for...
0:31:44 > 0:31:49- around 750 upwards. - Yeah, I'm very pleased with that.
0:31:49 > 0:31:51- That's fantastic.- Very pleased.
0:31:51 > 0:31:55But even with that incredible potential pre-tax profit
0:31:55 > 0:32:01of between £287,500 and £291,500,
0:32:01 > 0:32:05John and Cathy have no intentions of going anywhere.
0:32:05 > 0:32:10Now the bulk of the hard part is over, they know what they want.
0:32:10 > 0:32:16- To live in it! And enjoy it. - And perhaps downsize in several years' time.- In 10 years' time.
0:32:16 > 0:32:20# Up on cloud number nine... #
0:32:26 > 0:32:31'I'm in Shropshire on the outskirts of Telford.'
0:32:31 > 0:32:36Well, I'm in a place called Leegomery on a fairly attractive little housing estate.
0:32:36 > 0:32:40The house I'm here to see - three bedrooms, semi-detached.
0:32:40 > 0:32:45Around here, £60,000, which was the guide price, seems terribly cheap.
0:32:45 > 0:32:50But as we know, there's usually a reason for that.
0:32:50 > 0:32:53Let's find out what it is.
0:32:53 > 0:32:58'The house is on an ex-local authority housing estate. and dates from the 1980s,
0:32:58 > 0:33:01'so it's a fairly modern build.
0:33:02 > 0:33:07'I head straight for the front door, but I think I might have some trouble getting in.'
0:33:08 > 0:33:13Well, you can't get in through the front door. Never a good start.
0:33:13 > 0:33:19Still, it gives me a chance to see the garden. Not a huge size and slightly overlooked, but it's OK.
0:33:19 > 0:33:23One thing that is nice is this conservatory. Let's look inside.
0:33:28 > 0:33:30Ah.
0:33:31 > 0:33:34It suddenly becomes very clear.
0:33:34 > 0:33:38Obviously, there has been some kind of a fire in here
0:33:38 > 0:33:44and the property... Yep, he says, glancing into the kitchen, it's terribly smoke-damaged.
0:33:44 > 0:33:50So that's not a very good start. Immediately, you are on red alert for problems.
0:33:50 > 0:33:55But in terms of the space, you've got this rear living room area here.
0:33:55 > 0:33:59Kitchen there. And through to your front living room area here.
0:33:59 > 0:34:01And more kind of...
0:34:02 > 0:34:03Er, yep.
0:34:03 > 0:34:06That's definitely...
0:34:06 > 0:34:08smoke damage.
0:34:09 > 0:34:15'Thankfully, it was only the property that suffered the physical damage in this accident,
0:34:15 > 0:34:21'but removing grimy soot and smoke residue isn't always a straightforward process.
0:34:23 > 0:34:30'All the areas have to be scrubbed and often also degreased and sealed with a stain-block paint.'
0:34:31 > 0:34:37Well, into the entrance hall and you've got a nice downstairs cloakroom. That's useful.
0:34:37 > 0:34:41And space under the stairs. Stairs up to the bedroom,
0:34:41 > 0:34:45but what I'm more interested in is here by the front door
0:34:45 > 0:34:49because it looks to me like somebody, as I would have done,
0:34:49 > 0:34:53has been digging around to see how much damage has been caused.
0:34:53 > 0:34:57They've taken off some of the plasterboard from the ceilings
0:34:57 > 0:35:04and also taken away some of the wall to reveal the cables. The good news is the cables aren't damaged
0:35:04 > 0:35:08and, looking up there, neither are the floorboards or the joists.
0:35:08 > 0:35:13But you really do need to get a specialist in to check it out.
0:35:13 > 0:35:18'Upstairs, the smoke damage on the stairs and landing is pretty severe,
0:35:18 > 0:35:22'but the three main bedrooms and bathroom are not too bad.
0:35:22 > 0:35:28'There are two double bedrooms and one single. The bathroom suite might even be salvageable
0:35:28 > 0:35:30'with some effort and elbow grease.
0:35:30 > 0:35:35'But as with the electrics, get the experts to check the plumbing here.
0:35:35 > 0:35:40'What does a local estate agent think of this smoke-damaged semi?
0:35:40 > 0:35:45'Is it still a good buy despite its blackened interior?'
0:35:45 > 0:35:49It's a good-size, three-bedroom, semi-detached property.
0:35:49 > 0:35:53One of the unique selling features would be the driveway to the side.
0:35:53 > 0:35:57A lot of properties in the area are general communal parking.
0:35:57 > 0:35:59That's definitely a selling feature.
0:35:59 > 0:36:04Looks like it's got a bit of smoke damage, but nothing too serious.
0:36:04 > 0:36:10Generally, a tidy up, redecoration, new plasterboards, and hopefully it should sell really well.
0:36:10 > 0:36:15So if you did this up and let it out, what rental could you achieve?
0:36:15 > 0:36:18I'd say you're looking at about £550 per calendar month.
0:36:18 > 0:36:21And if sold on?
0:36:21 > 0:36:27If this was to go on the open market, I would recommend an asking price of £105,000-£110,00.
0:36:27 > 0:36:31Well, the internal state of this one could put some people off,
0:36:31 > 0:36:36but the key with fire-damaged properties is to know when it's really serious
0:36:36 > 0:36:40as opposed to just superficial. I think this is the latter,
0:36:40 > 0:36:45so a potential bargain to be had. Let's find out who spotted it under the hammer.
0:36:45 > 0:36:4850 can I say to start?
0:36:48 > 0:36:5045, then.
0:36:50 > 0:36:56Can we start it at 45? 45 bid. Seated right. At £45,000. 50 can I say now?
0:36:56 > 0:36:5850. At £50,000.
0:36:58 > 0:37:0255? At £55,000.
0:37:02 > 0:37:0660 is it now? Go in ones if it helps. Bid's at 55. Cost you 56 now.
0:37:06 > 0:37:09Back in. 56.
0:37:09 > 0:37:1057.
0:37:10 > 0:37:12You could have 58.
0:37:12 > 0:37:1459? 59.
0:37:14 > 0:37:1660.
0:37:16 > 0:37:1961. 62.
0:37:19 > 0:37:25With so much interest in this property and bids rising in £1,000 increments, we rejoin the auction
0:37:25 > 0:37:28at £80,000.
0:37:28 > 0:37:2980,000.
0:37:29 > 0:37:3181.
0:37:31 > 0:37:3282.
0:37:32 > 0:37:3583.
0:37:35 > 0:37:3884. 85?
0:37:38 > 0:37:42No. 84. Bid is standing at £84,000.
0:37:42 > 0:37:45At 84, I'm selling it first time.
0:37:45 > 0:37:51I'm selling it second time. Third and final time... All done at 84, then?
0:37:51 > 0:37:54Your lot. Well done.
0:37:59 > 0:38:04The final bid of £84,000 was made by Telford-based couple Ben and Emma.
0:38:04 > 0:38:09Ben runs an IT software company that Emma helps out with,
0:38:09 > 0:38:13as well as looking after their two young daughters.
0:38:13 > 0:38:18This was their first auction purchase, but they do have two other buy to lets.
0:38:18 > 0:38:21I met them back at Leegomery to find out more.
0:38:21 > 0:38:25- Lovely to meet you both.- Hi. - Congratulations.- Thank you.
0:38:25 > 0:38:30- Why did you buy this place?- Well... we just got carried away, really.
0:38:30 > 0:38:34We wanted to go to an auction, we like doing up properties.
0:38:34 > 0:38:38We set ourselves a budget for this one of about 75,
0:38:38 > 0:38:41got carried away, paid 84 for it and here we are.
0:38:41 > 0:38:45"Got carried away". Tell me more.
0:38:45 > 0:38:49Well, I think we had a number of properties we thought we might buy,
0:38:49 > 0:38:54only this one came up first. It was number nine on the auction thing.
0:38:54 > 0:38:59- That's quite a significant chunk over your budget. More than 10% over.- Yes.
0:38:59 > 0:39:05- I think there's still a profit here, hopefully. The damage looks pretty light.- OK.
0:39:05 > 0:39:12- I've heard it's harder to clean up soot than you'd think, but... we'll find out.- Right.
0:39:12 > 0:39:19- So what are you going to do to the place?- Well, we had about a £10,000 budget to do quite a lot.
0:39:19 > 0:39:25It transpired we couldn't get a mortgage because of the fire damage, so had to buy it cash, effectively.
0:39:25 > 0:39:30- So we've got no money left. - No money at all?- Well, odd bits, but we need to get it rented
0:39:30 > 0:39:33while spending the minimum possible.
0:39:33 > 0:39:38# I ain't got no money But I sure got a whole lotta love... #
0:39:38 > 0:39:45'Unfortunately, Ben and Emma only realised at the last minute that they couldn't get a mortgage,
0:39:45 > 0:39:49'so it's been very touch and go raising the finances in time.'
0:39:49 > 0:39:53At what point did you realise you couldn't get a mortgage on it?
0:39:53 > 0:39:59About halfway through... We got through the mortgage stage, then they came out to value it
0:39:59 > 0:40:04- and they said, "It's fire-damaged!" - It was a refurbishment mortgage,
0:40:04 > 0:40:08not a standard high street mortgage, but even so they weren't happy.
0:40:08 > 0:40:13And the bridging loans didn't work out. The cheapest was about 20%.
0:40:13 > 0:40:18- 20%?- Yeah, it was going to cost us £12,000, which seemed ridiculous.
0:40:18 > 0:40:22So the last £500 came from a pay day loan, would you believe?
0:40:22 > 0:40:28- It's been that close to the wire? - Until the day we completed, we had no idea if we had every pound.
0:40:28 > 0:40:35'That kind of borrowing could be seen as an extremely risky way to finance a house purchase.
0:40:35 > 0:40:42'I would certainly advise against it as the interest rates are much higher than other types of loan.
0:40:42 > 0:40:49'And it's left Ben and Emma with no money for the renovation. Zero. Zilch. That will be a struggle.'
0:40:52 > 0:40:58- So how are you going to do what you need to do?- Well, a lot of it is going to be done ourselves.
0:40:58 > 0:41:05- Get the gloves on and clean it up and see what we're left with, really.- What's your DIY like?
0:41:05 > 0:41:09Patchy at best! I enjoy it, but the results are not pretty.
0:41:09 > 0:41:17- Any particular DIY disasters you recollect?- The one where Ben glued the radiators to the wall.
0:41:17 > 0:41:20- He glued them?!- He glued them.
0:41:21 > 0:41:27- Just like normal glue? What happened?- He just went to a DIY shop and bought some glue.
0:41:27 > 0:41:31- He glues the radiators onto the wall...- They stayed for a while!
0:41:31 > 0:41:37- For how long? - A few months, until we heard a strange noise in the night.
0:41:37 > 0:41:41- Then it snapped?- Absolutely.- Only the one.- I learnt from that one.
0:41:41 > 0:41:48'Let's hope Ben did learn from that and also from his other previous DIY disasters
0:41:48 > 0:41:52'because when it comes to fire damage, you need to do it properly.
0:41:55 > 0:41:58'They've been doing up their own Grade 2-listed property for 5 years,
0:41:58 > 0:42:05'but with no money to play with I don't think they'll be able to take that long with this one.'
0:42:05 > 0:42:10- The timescale?- 3-4 months. - But basically down to hard graft.
0:42:10 > 0:42:12- Absolutely.- And family favours.
0:42:12 > 0:42:17- Friends, painting parties.- I wish you all the best getting it sorted.
0:42:17 > 0:42:23A lot of hard graft ahead. And we look forward to seeing how you get on.
0:42:23 > 0:42:26- Hopefully, it's a happy ending. - Thank you.
0:42:26 > 0:42:30I don't think Emma and Ben got a particular bargain with this place
0:42:30 > 0:42:34and I'm concerned about their budget or lack of it.
0:42:34 > 0:42:39And will Ben's DIY skills or not come to the fore?
0:42:39 > 0:42:44You can find out how it all turns out later in the show.
0:42:46 > 0:42:51It's been a while now since we last saw those purchases. Have the owners been busy bees?
0:42:51 > 0:42:56Or have they been stung and the projects stopped dead? Let's find out.
0:42:58 > 0:43:04'It's now back to Gravesend in Kent where property developer Pete bought this four-bed end of terrace house
0:43:04 > 0:43:06'for £146,000.
0:43:08 > 0:43:15'He used to be a publican, so it's fitting that he wants to raise the spirits of this place
0:43:15 > 0:43:21'that's been stripped to the bone, although I think he's missing a trick on the ground floor.'
0:43:21 > 0:43:27I think more people like to have a living room area and dining room area separate from the kitchen.
0:43:27 > 0:43:31- Kitchen/diners are going out of fashion.- No, they're not!- They are.
0:43:31 > 0:43:35You've got kids, family, people all sit together...
0:43:35 > 0:43:41If you've got kids, you've got them going in and out of the kitchen. You don't want the children in it.
0:43:42 > 0:43:49Well, three months later, we met up again with Pete to see if he's made the right decision.
0:43:49 > 0:43:55To start with, that boarded up appearance and "Keep Out!" face of the house has been replaced
0:43:55 > 0:44:01with something far more welcoming. New cladding, a new front door and new windows
0:44:01 > 0:44:08positively invite you in. So we followed Pete to see if he'd brought this house out of its shell.
0:44:08 > 0:44:10And what a transformation!
0:44:15 > 0:44:20Pete has still gone for separating the dining room and the kitchen
0:44:20 > 0:44:23and, surprisingly, it works.
0:44:26 > 0:44:30Well, kitchen, we've got rid of the serving hatch that was here.
0:44:30 > 0:44:35Partitioned that off. It allows us to have a lot more worktop and cupboard space.
0:44:35 > 0:44:38Over here we had sliding doors.
0:44:38 > 0:44:42We've bricked the sliding doors up and installed a window,
0:44:42 > 0:44:47which gives us a lot more worktop space. It's a lot more cleaner, convenient.
0:44:47 > 0:44:51Microwave, all the electrics have been completely renewed.
0:44:51 > 0:44:56Retiled the floor. New doors. And tiled it all.
0:44:56 > 0:45:03It just looks lovely now. Can't ask more from a kitchen, really. Can't really go wrong, can you?
0:45:03 > 0:45:07And there's nothing wrong with the upstairs either.
0:45:09 > 0:45:15There's a refreshing new white bathroom suite with tasteful tiles.
0:45:17 > 0:45:20And though redecorating this place wasn't exactly rocket science,
0:45:20 > 0:45:25Pete has achieved a good standard of finish with the four bedrooms.
0:45:26 > 0:45:31Pete has had the whole house replastered, rewired and replumbed,
0:45:31 > 0:45:37with new central heating and radiators. It was a big undertaking, with Pete doing most of it himself,
0:45:37 > 0:45:42but it's been an experience that he can sum up with one word.
0:45:42 > 0:45:45Enjoyable, because you could see the end result.
0:45:45 > 0:45:52The state the place was in when we first got here, putting the plasterboard on, then the plaster
0:45:52 > 0:45:56and then the paint going on, it was getting better and better.
0:45:58 > 0:46:03And what helps this place succeed is the soft colour schemes Pete has gone for.
0:46:03 > 0:46:06They're not the usual neutral tones.
0:46:06 > 0:46:11I never use magnolia. I always use ivory
0:46:11 > 0:46:18and I have always, instead of having curtain rails, have blinds. They're a lot more convenient.
0:46:18 > 0:46:23If you want to rent it, you've got blinds here. If you want to sell, they look nice.
0:46:23 > 0:46:25Magnolia's a no-no.
0:46:25 > 0:46:31# I can't go for that, No, no can do...
0:46:31 > 0:46:33# I can't go for that, no... #
0:46:33 > 0:46:38Colour choices aside, Pete has also created a larger living room by moving the partition wall
0:46:38 > 0:46:41further into the dining area.
0:46:41 > 0:46:46OK, so it's at the cost of a smaller dining room, but look out back and the yard we couldn't see before
0:46:46 > 0:46:53has been reclaimed and made into a nice little garden, so there's some extra space there.
0:46:54 > 0:46:59Pete has done a great job of transforming this place from a soulless shell
0:46:59 > 0:47:06into potentially a lovely family home and, ironically, it's his own family that has motivated him.
0:47:06 > 0:47:10Well, I've got a partner and a young daughter.
0:47:10 > 0:47:17I spend plenty of time with her. She comes up, looks around with her mother.
0:47:17 > 0:47:20That's my main priorities there.
0:47:20 > 0:47:24At the moment, Pete is undecided about what to do with this,
0:47:24 > 0:47:30whether to rent or sell it. He's finished it on his three-month schedule,
0:47:30 > 0:47:36but getting it to such a good standard of finish must have pushed his £20,000 budget to the limit.
0:47:36 > 0:47:40In the end, we ended up spending £26,000,
0:47:40 > 0:47:46but originally I thought I was going to get away with the windows, but I've changed all the windows
0:47:46 > 0:47:50and I was thinking of just painting the fascias, the cladding outside.
0:47:50 > 0:47:56It was wooden, it was rotten, so I decided to change the whole lot.
0:47:57 > 0:48:01And that changed his outlay.
0:48:01 > 0:48:05Add that £26,000 to his purchase price of £146,000
0:48:05 > 0:48:09and his total spend is now £172,000.
0:48:09 > 0:48:14Time to find out what two local estate agents think of his renovation.
0:48:14 > 0:48:18Overall standard of work in this property is to a very high standard.
0:48:18 > 0:48:22I'm very impressed. Everything has been finished to a T.
0:48:22 > 0:48:27He's put a lot of effort into the kitchen and the units look very good, high quality.
0:48:27 > 0:48:33The built-in appliances. He's left space for a dishwasher as well as a washing machine,
0:48:33 > 0:48:35so I like it. It's good.
0:48:35 > 0:48:41'I really like the bathroom. There's a good choice of tiles. Very neutral.'
0:48:41 > 0:48:48So what sort of return can Pete expect on his £172,000 investment? First, the resale figures.
0:48:48 > 0:48:56If I was to put this property on the market, I would say it would fetch in the region of £220,000-£225,000.
0:48:56 > 0:49:03If I was putting this up for sale, I would look for an asking figure of between £195,000 and £200,000.
0:49:03 > 0:49:07If I could achieve 210, I'd be happy. But 220, that's good.
0:49:07 > 0:49:14Those valuations could give Pete a possible pre-tax profit of £23,000-£53,000,
0:49:14 > 0:49:18but would the rental figures be more appealing?
0:49:18 > 0:49:21If this property was to be put on the market for rental,
0:49:21 > 0:49:25it should fetch in the region of £1,110-£1,200 per calendar month.
0:49:25 > 0:49:31If I was putting this up for rent, I'd be looking for a figure of £950 per calendar month.
0:49:31 > 0:49:35I was expecting £1,000 to £1,100.
0:49:35 > 0:49:40I was thinking £1,200 as the top part of the market, but £1,100 I'd be happy with.
0:49:43 > 0:49:49Well, those figures could give Pete a healthy annual rental yield of about 6.5%-8.5%,
0:49:49 > 0:49:52so nice figures either way.
0:49:52 > 0:49:58With such good returns possible, is Pete tempted to go back into the property market?
0:49:58 > 0:50:03If it's a good property and it's reasonable, worth buying and renovating, I'd do it.
0:50:06 > 0:50:11Earlier in the programme we were in Leegomery, Shropshire,
0:50:11 > 0:50:16where this fire-damaged semi had been bought for £84,000 by Ben and his wife Emma.
0:50:17 > 0:50:22It was to add to their other two buy-to-let properties.
0:50:23 > 0:50:30Ben has his own IT software business, which Emma helps with while bringing up their two girls.
0:50:30 > 0:50:34They've been doing up their own Grade 2-listed home for 5 years.
0:50:34 > 0:50:38They plan to refurbish this house and then rent it out.
0:50:39 > 0:50:44With no budget to speak of, the couple plan to do most of the work,
0:50:44 > 0:50:48but stories of Ben's DIY skills didn't inspire confidence.
0:50:50 > 0:50:54Any particular DIY disasters you recollect?
0:50:54 > 0:50:57There's the one where Ben glued all the radiators on the wall.
0:50:57 > 0:51:00- He glued them?!- He glued them.
0:51:02 > 0:51:08Well, it's now three months later and Emma and Ben have invited us back to see the results.
0:51:11 > 0:51:15There's a new front door and canopy to welcome us.
0:51:15 > 0:51:20The exterior signs of the fire have gone.
0:51:20 > 0:51:26And inside the once smoke-engulfed hall is now shining white and all replastered.
0:51:36 > 0:51:42OK, well, this was the main scene of devastation. There was no front door, everything was black,
0:51:42 > 0:51:49the floor was burnt, blackness everywhere. So we obviously put a front door in, which is a bonus.
0:51:49 > 0:51:56Put a new floor in, got a plasterer in, got a painter in, new floors, and it's looking pretty good now.
0:51:56 > 0:52:00The living room was in just as bad a state.
0:52:01 > 0:52:06But after much scrubbing, the walls were ready for redecorating.
0:52:07 > 0:52:13And now with new carpets down the house is ready to rent out.
0:52:14 > 0:52:17The smoke had got everywhere.
0:52:17 > 0:52:24The kitchen was particularly bad, but, as Emma explains, in the end a lot was salvaged.
0:52:26 > 0:52:31If you remember, this room was completely black. We've freshened it up, new worktops.
0:52:31 > 0:52:34Managed to salvage all the cupboards, new handles.
0:52:34 > 0:52:37New tiles. I think it's really fresh and clean.
0:52:40 > 0:52:46On the stairs, the terrifying effects of fire were all too evident,
0:52:46 > 0:52:50but like the hall it's now white and restored.
0:52:53 > 0:52:59Upstairs, the cupboards and doors in the three bedrooms have all been saved.
0:53:00 > 0:53:04And the rooms have been decorated and carpeted.
0:53:06 > 0:53:11Ben and Emma kept the bath, but replaced the loo and basin in the bathroom.
0:53:12 > 0:53:18The whole house is now free of the smell and all the evidence of the smoke damage,
0:53:18 > 0:53:21but it can't have been easy.
0:53:21 > 0:53:26It was really hard getting rid of the smoke damage. There was probably a period of about a week
0:53:26 > 0:53:31where it was all trial and error, finding different chemicals.
0:53:31 > 0:53:35- But once we figured it out... - We thought we'd made a huge mistake, but we got there.
0:53:35 > 0:53:42Cleaning the whole house took six weeks and a further six to decorate from top to bottom.
0:53:44 > 0:53:48One window took Emma more than three hours to clean,
0:53:48 > 0:53:56but what about Ben? With his DIY history, was he let loose on anything other than cleaning?
0:53:56 > 0:53:59Yes, I was! I did really quite a lot.
0:53:59 > 0:54:05And it's all gone fine. A few minor explosions, but nothing life-threatening.
0:54:05 > 0:54:08Well, thankfully, he's not joking.
0:54:08 > 0:54:13Apart from cleaning the property, Ben didn't do much DIY here at all.
0:54:13 > 0:54:18In the end, the couple got contractors in to do most of the work and no wonder
0:54:18 > 0:54:24as the little Ben did do in the salvaged kitchen didn't go too well.
0:54:24 > 0:54:28Ben decided to get some paint off the worktop using sandpaper.
0:54:28 > 0:54:33- So we had to replace the worktops. - I thought Formica was indestructible.
0:54:33 > 0:54:37So another DIY tip that Ben has learnt the hard way.
0:54:37 > 0:54:43The garden's not a bad size and makes this three-bed house ideal for families.
0:54:43 > 0:54:49As they couldn't get a mortgage because of the fire damage, their finances were tight.
0:54:49 > 0:54:54They hadn't even set a budget and had to finance the work on credit.
0:54:54 > 0:55:01It's really not advisable to do it that way and not the wisest way to fund a property development.
0:55:02 > 0:55:06So what's the damage? How much have they spent here?
0:55:06 > 0:55:09We've spent about £12,000
0:55:09 > 0:55:15and it's not been particularly tricky, but we haven't looked at the credit card statements yet.
0:55:15 > 0:55:21- It may well prove to be tricky. - That £12,000 spend, plus the £84,000 they paid at auction,
0:55:21 > 0:55:25takes their total to £96,000.
0:55:25 > 0:55:29Time to hear what a local estate agent will make of the house
0:55:29 > 0:55:31now the smoke damage has gone.
0:55:32 > 0:55:35I think it's very nice.
0:55:35 > 0:55:41The improvements are fantastic. The particular bonus is the bathroom. It really strikes you.
0:55:41 > 0:55:47Ben and Emma are looking to rent it out, but could the house attract buyers or tenants?
0:55:47 > 0:55:53- What's the best market?- I think it would appeal to both the rental and sale market, but just rent it.
0:55:53 > 0:55:57So how much could it generate?
0:55:57 > 0:56:00Rental potential is £575 per calendar month.
0:56:00 > 0:56:04That would produce a great rental yield of over 7% for the couple.
0:56:04 > 0:56:08- Brilliant, yeah. - That's really good.- Perfect.
0:56:08 > 0:56:11What's the house now worth if sold?
0:56:11 > 0:56:14Sale value, I would estimate £105,000.
0:56:14 > 0:56:19So a £9,000 gross profit before expenses.
0:56:19 > 0:56:24- Yeah.- That is more than we paid for it, so we're happy. - There's a profit.
0:56:24 > 0:56:29Taking on any fire-damaged property is not without its problems,
0:56:29 > 0:56:33but Ben and Emma prove it can be done.
0:56:33 > 0:56:39- So are they pleased they took it on? - It was definitely worthwhile cos it's a lovely house.
0:56:39 > 0:56:43- A good one to have in our portfolio. - Yeah, educational.
0:56:48 > 0:56:55- Join us next time for some more auction action.- Will the buyers make huge profits or losses?
0:56:55 > 0:57:01- Will you be jealous or glad it wasn't you? Find out on Homes Under The Hammer.- See you then.- Goodbye.
0:57:17 > 0:57:20Subtitles by Red Bee Media Ltd